Agenda packet — City Council and Concurrent Authorities, September 15, 2026 (part 1 of 2)

City Council and Concurrent Authorities
City of Stockton
Meeting Agenda - Final
City Council and
Concurrent Authorities
Christina Fugazi, Mayor/Chair (At Large)
Jason Lee, Vice Mayor (District 6)
Michele Padilla (District 1)
Mariela Ponce (District 2)
Michael Blower (District 3)
Mario Enríquez (District 4)
Brando Villapudua (District 5)
Council Chamber, City Hall, 501 W. Weber Ave,
Building 1, Stockton CA
1:00 PMTuesday, September 15, 2026
Regular Session 1:00 PM :: Closed Session To Follow
Note: Councilmember Enriquez will participate in the meeting via teleconference from the following location: Courtyard by Marriott Washington Downtown, 901 L Street, NW, Washington, DC 20001 - Business Center
Note: Vice Mayor Lee will participate in the meeting via teleconference from the following location: 6390 de Longpre Ave, Los Angeles Ca 90028

1. REGULAR SESSION CALL TO ORDER/ROLL CALL

2. INVOCATION/PLEDGE TO FLAG

3. ADDITIONS TO REGULAR SESSION AGENDA***

4. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS

4.1 26-0907 PROCLAMATION: NATIONAL FORENSIC SCIENCE APPRECIATION WEEK - September 20-26, 2026
Department: Office of the Mayor

4.2 26-1016 PROCLAMATION: SUICIDE PREVENTION MONTH
Department: Office of the Mayor

5. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

6. CONSENT AGENDA

6.1 26-0961 APPROVE MOTION TO AUTHORIZE COOPERATIVE PURCHASING AGREEMENT AMENDMENT NO. 1 FOR FACILITIES MAINTENANCE,

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REPAIRS, AND OPERATING SUPPLIES (MRO), INDUSTRIAL

SUPPLIES, AND RELATED PRODUCTS FOR VARIOUS

DEPARTMENTS
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.

Authorize the City Manager to execute Standard Agreement Amendment No. 1, in the amount of $175,000, with Sid Tool Co., Inc. doing business as MSC Industrial Supply Co for facilities maintenance, repairs, operating supplies, industrial supplies, and related products for various departments.

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 motion.

Department: Administrative Services
Attachment A - Initial Agreement - MSC INDUSTRIAL SUPPLY CO Attachment B - Vendor Master agreement Renewal
Attachment C - Standard Agreement Amend No. 1
Attachments:

6.2 26-0988 APPOINTMENT OF INTERIM CITY CLERK
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a resolution appointing Bonnie Paige as the Interim City Clerk for the City of Stockton and authorize the Mayor, on behalf of the City Council, to execute an employment contract with Bonnie Paige setting forth the conditions of employment (Exhibit 1 to the Resolution).

Department: City Attorney
Proposed Resolution
Exhibit 1 - Interim Clerk Employment Agreement
Attachments:

6.3 26-0922 AUTHORIZE THE CITY MANAGER TO EXECUTE A LEASE FOR

LINDEN LIBRARY WITH MAGNASCO INVESTMENTS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a motion authorizing the execution of a three-year lease with Magnasco Investments for the Linden Library facility, with a mutual option for an additional three-year term, and authorize the City Manager to take all appropriate and necessary actions to carry out the purpose and intent of this motion.

Department: Community Services
Attachment A - 2026 Commercial Lease Agreement for Linden LibraryAttachments:

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6.4 26-0900 APPROVE A RESOLUTION TO ACCEPT AND APPROPRIATE

BROWNFIELDS COMMUNITY-WIDE ASSESSMENT GRANT

FUNDING FROM THE UNITED STATES ENVIRONMENTAL

PROTECTION AGENCY
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a resolution to:

Authorize the City Manager to accept and appropriate grant funding from the United States Environmental Protection Agency (EPA) in the amount of $500,000 for the FY 2026 Brownfields Community-Wide Assessment Grant Program; and
Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this resolution including executing, on behalf of the City of Stockton, all required contracts or agreements with the granting agency, provide additional information and furnish such documents as may be required, execute all documents and amendments or extensions pertaining to the grant project, and make all required appropriations in compliance with and for the purposes stated in the Project Agreement.

Department: Economic Development
Attachment A - Target Areas
Proposed Resolution - 2026 EPA Grant
Attachments:

6.5 26-0958 APPROVAL OF A TEMPORARY RECRUITMENT AND RETENTION

INCENTIVE AND SIDE LETTER AGREEMENTS FOR POLICE

TELECOMMUNICATION CLASSIFICATIONS IN THE STOCKTON
CITY EMPLOYEES’ ASSOCIATION AND THE STOCKTON

MID-MANAGEMENT / SUPERVISORY UNITS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached Side Letter Agreements between the City of Stockton (City) and the Stockton City Employees’ Association (SCEA) and the Stockton Mid-Management/Supervisory Level (B&C) Unit. The side letters establish a temporary recruitment and retention incentive for eligible employees in the Police Telecommunication classifications through June 30, 2029.

It is further recommended that the City Manager be authorized to take any appropriate and necessary actions to carry out the purpose and intent of the resolution, including implementation and funding of the side letter agreements.

Department: Human Resources

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Attachment A - B&C Police Telecommunications Side Letter Agreement Attachment B - SCEA Police Telecommunicator Side Letter Agreement Proposed Resolution
Exhibit 1 - B&C Police Telecommunications Side Letter Agreement Exhibit 2 - SCEA Police Telecommunicator Side Letter Agreement Attachments:

6.6 26-0959 APPROVAL OF A TEMPORARY PROMOTIONAL INCENTIVE AND

SIDE LETTER AGREEMENT FOR FIREFIGHTER ENGINEERS IN
THE STOCKTON FIREFIGHTERS’ LOCAL 456 UNIT
Recommended Action: RECOMMENDATION
To encourage current employees in the Fire Department to promote into the Firefighter Engineer classification, it is recommended that the City Council adopt by resolution the attached side letter agreement between the City of Stockton and the Stockton Firefighters’ Local 456 unit, effective July 1, 2026. The side letter establishes a temporary promotional incentive of fifteen thousand dollars ($15,000) for eligible employees promoted to a Firefighter Engineer classification.

Department: Human Resources
Attachment A - Side Letter Agreement - Firefighter Engineer Promotion.pdf Proposed Resolution
Exhibit 1- Side Letter Agreement - Firefighter Engineer Promotion.pdf Attachments:

6.7 26-0976 APPROVAL OF MEMORANDUM OF UNDERSTANDING BETWEEN

THE CITY OF STOCKTON AND THE OPERATIONS AND

MAINTENANCE UNIT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached successor Memorandum of Understanding (MOU) with the Operations and Maintenance Unit effective July 1, 2026, through June 30, 2029.

Department: Human Resources
Attachment A - Operations and Maintenance Unit MOU - Redline Proposed Resolution
Exhibit 1 - Operations and Maintenance Unit MOU
Attachments:

6.8 26-0977 APPROVAL OF MEMORANDUM OF UNDERSTANDING BETWEEN

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THE CITY OF STOCKTON AND THE TRADES AND MAINTENANCE
UNIT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached successor Memorandum of Understanding (MOU) with the Trades and Maintenance Unit effective July 1, 2026, through June 30, 2029.

Department: Human Resources
Attachment A – Trades and Maintenance Unit MOU – Redline Proposed Resolution
Exhibit 1 – Trades and Maintenance Unit MOU
Attachments:

6.9 26-0882 ADOPT A RESOLUTION AUTHORIZING THE PURCHASE OF A PUMP FROM G3 ENGINEERING, INC. FOR THE WASTEWATER

RECOVERY CENTER NITRIFYING BIOTOWERS (CITYWIDE)
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the purchase of a spare pump for the nitrifying biotowers from G3 Engineering, Inc., of Granite Bay, CA, in an amount not to exceed $186,319.15.

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
Attachment A - Quote from G3 Engineering
Propposed Resolution
Attachments:

6.10 26-0820 APPROVE MOTION TO AUTHORIZE CONTRACT CHANGE ORDER NO. 6 FOR CITY OF STOCKTON CUSTODIAL SERVICES
(CITYWIDE)
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to authorize Contract Change Order No. 6, in the amount of $1,078,975.13, with Imperial Maintenance Services, Inc. of Stockton, CA, for City of Stockton Custodial Services, Project No. OM-22-005.

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 motion.

Department: Public Works

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Attachment A - CCO No. 6
Attachment B - Department Financial Breakdown
Attachments:

6.11 26-0853 ADOPT RESOLUTION TO AUTHORIZE THE ADA CURB RAMP INSTALLATION PROJECT (DISTRICTS 3, 4, 5, AND 6)
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Approve Notice of Exemption No. NOE24-26 under the California Environmental Quality Act for the ADA Curb Ramp Installation, Project No.

WD26004.

Approve the plans and specifications for the ADA Curb Ramp Installation, Project No. WD26004.

Award a Construction Contract in the amount of $545,000 to Modernscapes Innovations of Oakley, CA, for the ADA Curb Ramp Installation, Project No. WD26004.

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 - Vicinity Map
Attachment B - Location List
Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Construction Contract
Attachments:

7. ADMINISTRATIVE MATTERS

8. UNFINISHED BUSINESS

9. HEARINGS**

10. NEW BUSINESS

11. CITY MANAGER'S UPDATE

12. COUNCIL COMMENTS

13. ADDITIONS TO CLOSED SESSION AGENDA

14. ANNOUNCEMENT OF CLOSED SESSION

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14.1 26-0813 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED

LITIGATION
Number of Cases: One
Pursuant to Government Code section 54956.9(d)(2) to discuss matters pertaining to the threat of litigation.

Department: City Attorney

15. RECESS TO CLOSED SESSION

16. REPORT OF ACTION TAKEN IN CLOSED SESSION

17. ADJOURNMENT

1. INFORMATIONAL ITEMS

1.1 26-1019 COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES Recommended Action: RECOMMENDATION
Information item only. No action required.

Department: City Clerk
CICP 2026-01-28.pdf
CICP 2026-02-26.pdf
CICP 2026-05-27.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 11, 2026 in compliance with the Brown Act.

Katherine Roland, CMC, CPMC
City Clerk
By: ________________________________

Deputy

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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. The time limit for public comment is four (4) minutes and remains at the discretion of the presiding officer and changes shall be set at the start of the meeting. 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. Email - you may email your comments to [email protected]

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

3. 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. b) Address only issues over which the meeting body has jurisdiction. c) The time limit for public comment is at the discretion of the presiding officer and shall be set at the start of the meeting. 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 to the minutes. All comments received after that time will be forwarded as correspondence the following business day. Written and voicemail comments will not be read into the record.

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 disabled 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 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.

Council Policy Manual Chapter 4.07 DECORUM
§ 4.07.010 Policy.
1) COUNCILMEMBERS

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The City Council will practice civility and decorum in their discussions and debate. Councilmembers will value each other's time and will preserve order and decorum. A member shall neither, by conversation or otherwise, delay or interrupt the proceedings of the Council, use personal, impertinent or slanderous remarks, nor disturb any other member while that member is speaking or refuse to obey the orders of the presiding officer or the Council, except as otherwise provided herein.

A) All Councilmembers have the opportunity to speak and agree to disagree but no Councilmember shall speak twice on any given subject unless all other Councilmembers have been given the opportunity to speak.

B) The Mayor has the affirmative duty to maintain order. The City Council will honor the role of the Mayor in maintaining order. If a Councilmember believes the Mayor is not maintaining order, the Councilmember may move that the Vice-Mayor enforce the rules of decorum and otherwise maintain order. If that motion receives a second and is approved by a Council majority, the Vice-Mayor shall enforce the rules of decorum and maintain order.

C) Any Councilmember who violates the rules repeatedly shall be sanctioned by the City Council, including, but not limited to, barring the Councilmember from further participation (other than voting) on the subject. 2) PERSONS ADDRESSING THE CITY COUNCIL
Persons addressing the Council shall not make personal, impertinent, unduly repetitive, slanderous or profane remarks to the Council, any member of the Council, City staff or the general public, nor utter loud, threatening, personal or abusive language, nor engage in any other conduct that disrupts, disturbs or otherwise unreasonably impedes the orderly conduct of the Council meeting. Any person who makes such remarks, who utters loud, threatening, personal or abusive language, who is unduly repetitious or engages in extended discussion of irrelevancies, or who engages in any disorderly conduct that disrupts, disturbs or otherwise unreasonably impedes the orderly conduct of any Council meeting shall, at the discretion of the presiding officer or a majority of the Council, be barred from further audience before the Council during that meeting. 3) ENFORCEMENT
The rules of decorum set forth above shall be enforced in the following manner:

Warning. The presiding officer shall request that a person who is breaching the rules of decorum be orderly and silent. If, after receiving a warning from the presiding officer, a person persists in disturbing the meeting, the presiding officer shall order him or her to leave the Council meeting. If such person does not remove himself or herself, the presiding officer may order any law enforcement officer who is on duty at the meeting to remove that person from the Council Chambers.
4) RULES PERTAINING TO SIGNS, OBJECTS, SYMBOLIC MATERIALS, AND FIRE SAFETY WITHIN THE

COUNCIL CHAMBERS DURING COUNCIL MEETINGS
A) Objects and symbolic materials such as signs which do not have sticks attached or otherwise create any fire or safety hazards will be allowed within the Council Chamber during Council meetings provided that they are not so large as to infringe upon the space of those in adjacent areas, and are no wider on their longest side than the audience chairs.

B) Persons with objects and symbolic materials such as signs must remain seated when displaying them except when making an oral presentation to the Council and must not raise them above shoulder level or otherwise use them to obstruct vision or passage or disturb the conduct of the Council meeting. Such materials may not be placed on or against the walls, doors or furniture or in the aisles.

C) Exits shall not be obstructed in any manner. Obstructions, including storage, shall not be placed in aisles or other exit ways. Hand carried items must be stored so that such items do not inhibit passage in aisles or other exit ways.

D) Exit ways shall not be used in any way that will present a hazardous condition.

E) Overcrowding and admittance of persons beyond the approved capacity of a place of assembly are prohibited.

F) The Fire Marshal may establish designated areas for media equipment. 5) PERSONS AUTHORIZED WITHIN RAIL
No person except City officials and City staff shall be permitted within the rail in front of the City Council dais without the express consent of the presiding officer.

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10 City of Stockton
Legislation Text
File #: 26-0907, Version: 1
PROCLAMATION: NATIONAL FORENSIC SCIENCE APPRECIATION WEEK - September 20-26, 2026
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Legislation Text
File #: 26-1016, Version: 1
PROCLAMATION: SUICIDE PREVENTION MONTH
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Legislation Text
File #: 26-0961, Version: 1

APPROVE MOTION TO AUTHORIZE COOPERATIVE PURCHASING AGREEMENT AMENDMENT NO. 1 FOR FACILITIES MAINTENANCE, REPAIRS, AND OPERATING SUPPLIES (MRO),

INDUSTRIAL SUPPLIES, AND RELATED PRODUCTS FOR VARIOUS DEPARTMENTS

RECOMMENDATION
It is recommended that the City Council approve a motion 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 Standard Agreement Amendment No. 1, in the amount of $175,000, with Sid Tool Co., Inc. doing business as MSC Industrial Supply Co for facilities maintenance, repairs, operating supplies, industrial supplies, and related products for various departments.

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 motion.

Summary
The City needs to support demand for facilities maintenance, repairs, and operating supplies, industrial supplies, and related products requested by various departments. On January 13, 2026, the City entered into a cooperative agreement with NASPO ValuePoint and the State of Kentucky with an initial term of eight months and renewals totaling up to four years following the initial term in the amount of $100,000, with Sid Tool Co., Inc. doing business as MSC Industrial Supply Co (Attachment A). On February 11, 2026, the state of Kentucky extended this NASPO ValuePoint cooperative agreement through August 31, 2028 (Attachment B).

It is recommended that Council approve a motion authorizing the City Manager to execute Standard Agreement Amendment No. 1 with Sid Tool Co., Inc. doing business as MSC Industrial Supply Co, in the amount of $175,000, for a two-year extension and for a total cost not to exceed the amount of $275,000 (Attachment C). The amendment will extend the contract from August 31, 2026, to August 31, 2028.

DISCUSSION
Background
On January 13, 2026, the City entered into a cooperative agreement with NASPO ValuePoint and the State of Kentucky with Sid Tool Co., Inc., doing business as MSC Industrial Supply Co, with an initial City of Stockton Printed on 9/11/2026Page 1 of 2
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term of eight months and two two-year options for Facilities MRO and Industrial Supplies.

Present Situation
The City still has a need to procure MRO, industrial supplies, and related products to meet department operational and maintenance needs, and this extension will fulfill this need.

Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:

1. The Commonwealth of Kentucky Master Enabling Agreement provides a competitively procured cooperative purchasing mechanism that allows participating public agencies to obtain goods and services under competitively established terms and conditions.

2. Utilization of the Commonwealth of Kentucky Master Enabling Agreement is in the best interest of the City because it provides access to the required MRO, industrial supplies, and related products without conducting a separate competitive procurement process.

3. The proposed procurement is consistent with the City's procurement requirements and applicable cooperative purchasing authority, and use of the Commonwealth of Kentucky Master Enabling Agreement provides an efficient and cost-effective means of obtaining the required equipment and services

FINANCIAL SUMMARY
There are sufficient funds for these purchases and will be covered by the requesting departments’ such as Public Works and Municipal Utilities existing budget appropriations within their approved budget limits.

There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.

Attachment A - Initial Standard Agreement with Sid Tool Co., Inc., doing business as MSC Industrial Supply Co
Attachment B - Vendor Master Agreement Renewal
Attachment C - Standard Agreement Amendment No. 1 with Sid Tool Co., Inc., doing business as MSC Industrial Supply Co
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59 Commonwealth of Kentucky

MASTER AGREEMENT

CONTRACT INFORMATION
MASTER AGREEMENT NUMBER: MA 758
2500000411
Effective Date: 09/01/2024 Record Date:

Expiration Date: 08/31/2026 Procurement Folder: 1306457 Document Description: Facilities MRO and Industrial Supplies NASPO (MSC)
Procurement Type: Standard Goods and Services
Cited Authority: Competitive Negotiation-Goods and Services Version Number: 1

CONTACT INFORMATION
ISSUER:

Daniel Salvato
502-564-5862
[email protected]

VENDOR INFORMATION
Name /Address: Contact:

KS0005718: MSC Industrial Direct Co., Elizabeth Flores
DBA: MSC Industrial Supply 714-768-0049
525 Harbour Place Drive [email protected]
Davidson NC 28036-7444

COMMODITY / SERVICE INFORMATION
Line
Quantity UOM Unit Price Service Amount Service From Service To Line Total 1 1.00000 EA $0.010000 $0.00 $0.01
Facilities MRO and Industrial Supplies
Extended Description:

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
60 See “Attachment A” for Terms and Conditions. The terms and conditions set out in “Attachment A” are incorporated into and are a part of the Contract.

Document Phase
Document Description Page 2
2500000411 Draft Facilities MRO and Industrial Supplies NASPO ( MSC)
Total Pages: 2
Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
61 Master Agreement Number MA 758 2500000411
for

FACILITIES MRO AND INDUSTRIAL SUPPLIES
between
the State of Kentucky
and
Sid Tool Co., Inc. d/b/a MSC Industrial Supply Co.

This
Master Agreement is entered into by the State of Kentucky (“Lead State”) and the following contractor (each a “Party” and collectively the “Parties”) as a result of Solicitation Number RFP 758 2400000228 (the “RFP”) for the purpose of providing Facilities MRO and Industrial Supplies through the NASPO ValuePoint cooperative purchasing program:

Sid
Tool Co., Inc. d/b/a MSC Industrial Supply Co. (“Contractor”) 525 Harbour Place Drive
Davidson, NC. 28036-7444
MAST
ER AGREEMENT CONTACTS.

Contr
actor’s contact for this Master Agreement is:

Elizabeth Flores
Program Manager, Public Sector
[email protected]
714-768-0049
Lead St
ate’s contact for this Master Agreement is:

Daniel Salvato, CPPB, NIGP-CPP, KCPM
Office of Procurement Services
200 Mero Street, 5th Floor
Frankfort, KY 40622
(502) 564-5862
[email protected]
TERM
. This Master Agreement is effective as of September 1, 2024, and will terminate on August 31, 2026 unless terminated sooner or extended or renewed in accordance with the terms set forth herein.

Renewals totaling up to four years following the initial term may be exercised upon mutual agreement by the Parties.

ATTACHM
ENTS. This Master Agreement includes the following attachments:

Att
achment A: Master Agreement Terms and Conditions
Exhibit 1: Description of Goods and/or Services and Discount Percentages Exhibit 2: Environmentally Preferred Products
Exhibit 3: NASPO ValuePoint Sales Data Report Form

ATTACHMENT B
62 SI
GNATURE. The undersigned for each Party represents and warrants that this Master Agreement is a valid and legal agreement binding on the Party and enforceable in accordance with the Master Agreement’s terms and that the undersigned is duly authorized and has legal capacity to execute and deliver this Master Agreement and bind the Party hereto.

IN
WITNESS WHEREOF, the Parties have executed this Master Agreement.

CONT
RACTOR:

____
______________________________________
Signature Date
_______
___________________________________
Printed Name and Title
LEA
D STATE:
_______
___________________________________
Signature Date
__K
athy Robinson, Executive Director_____________
Printed Name and Title
Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C 8/26/2024
David Haugh VP
Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3 8/30/2024

ATTACHMENT B
63 Attac
hment A

MASTER AGREEMENT TERMS AND CONDITIONS

NASPO VALUEPOINT MASTER AGREEMENT TERMS AND CONDITIONS
I. Definitions

1.1 Acceptance means acceptance of goods and services as set forth in Section IX of this Master Agreement.

1.2 Contractor means a party to this Master Agreement, whether a person or entity, that delivers goods or performs services under the terms set forth in this Master Agreement.

1.3 Embedded Software means one or more software applications which permanently reside on a computing device.

1.4 Intellectual Property means any and all patents, copyrights, service marks, trademarks, trade secrets, trade names, patentable inventions, or other similar proprietary rights, in tangible or intangible form, and all rights, title, and interest therein.

1.5 Lead State means the State centrally administering any resulting Master Agreement(s) who is a party to this Master Agreement.

1.6 Master Agreement means the underlying agreement executed by and between the Lead State, acting in cooperation with NASPO ValuePoint, and the Contractor, as now or hereafter amended.

1.7 NASPO ValuePoint is a division of the National Association of State Procurement Officials (“NASPO”), a 501(c)(3) corporation. NASPO ValuePoint facilitates administration of the NASPO cooperative group contracting consortium of state chief procurement officials for the benefit of state departments, institutions, agencies, and political subdivisions and other eligible entities (i.e., colleges, school districts, counties, cities, some nonprofit organizations, etc.) for all states, the District of Columbia, and territories of the United States. NASPO ValuePoint is identified in the Master Agreement as the recipient of reports and may perform contract administration functions relating to collecting and receiving reports, as well as other contract administration functions as assigned by the Lead State.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
64 1.8 Order or Purchase Order means any purchase order, sales order, contract or other document used by a Purchasing Entity to order the Products.

1.9 Participating Addendum means a bilateral agreement executed by a Contractor and a Participating Entity incorporating this Master Agreement and any additional Participating Entity-specific language or other requirements (e.g., ordering procedures specific to the Participating Entity, entity-specific terms and conditions, etc.).

1.10 Participating Entity means a state (as well as the District of Columbia and US territories), city, county, district, other political subdivision of a State, or a nonprofit organization under the laws of some states properly authorized to enter into a Participating Addendum, that has executed a Participating Addendum.

1.11 Participating State means a state that has executed a Participating Addendum or has indicated an intent to execute a Participating Addendum.

1.12 Product or Products and Services means any equipment, software (including embedded software), documentation, service, or other deliverable supplied or created by the Contractor pursuant to this Master Agreement. The term Product includes goods and services.

1.13 Purchasing Entity means a state (as well as the District of Columbia and US territories), city, county, district, other political subdivision of a State, or a nonprofit organization under the laws of some states if authorized by a Participating Addendum, that issues a Purchase Order against the Master Agreement and becomes financially committed to the purchase.

II. Term of Master Agreement

2.1 Initial Term. The initial term of this Master Agreement is for two years. The term of this Master Agreement may be amended beyond the initial term for four additional years (two renewals for two years each) at the Lead State’s discretion and by mutual agreement and upon review of requirements of Participating Entities, current market conditions, and Contractor performance.

The Lead State may, prior to execution, adjust the effective date or duration of the initial term or renewal period of any Master Agreement for the purpose of making the Master Agreement coterminous with others.

2.2 Amendment Limitations. The terms of this Master Agreement will not be waived, altered, modified, supplemented, or amended in any manner whatsoever without prior written agreement of the Lead State and Contractor.

2.3 Amendment Term. The term of the Master Agreement may be amended past the initial term and stated renewal periods for a reasonable period if in Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
65 the judgment of the Lead State a follow-on competitive procurement will be unavoidably delayed (despite good faith efforts) beyond the planned date of execution of the follow-on master agreement. This subsection will not be deemed to limit the authority of a Lead State under its state law to otherwise negotiate contract extensions.

III. Order of Precedence

3.1 Order. Any Order placed under this Master Agreement will consist of the following documents:

3.1.1 A Participating Entity’s Participating Addendum (“PA”);

3.1.2 NASPO ValuePoint Master Agreement, including all attachments thereto;

3.1.3 A Purchase Order or Scope of Work/Specifications issued against the Master Agreement;

3.1.4 The Solicitation or, if separately executed after award, the Lead State’s bilateral agreement that integrates applicable provisions;

3.1.5 Contractor’s response to the Solicitation, as revised (if permitted) and accepted by the Lead State.

3.2 Conflict. These documents will be read to be consistent and complementary.

Any conflict among these documents will be resolved by giving priority to these documents in the order listed above. Contractor terms and conditions that apply to this Master Agreement are only those that are expressly accepted by the Lead State and must be in writing and attached to this Master Agreement as an Exhibit or Attachment.

3.3 Participating Addenda. Participating Addenda will not be construed to diminish, modify, or otherwise derogate any provisions in this Master Agreement between the Lead State and Contractor. The term of a Participating Addendum will not exceed the term of this Master Agreement, except when a Participating Entity determines an extension of its Participating Addendum is necessary to avoid a lapse in contract coverage and is permitted by law.

IV. Participants and Scope

4.1 Requirement for a Participating Addendum. Contractor may not deliver Products under this Master Agreement until a Participating Addendum acceptable to the Participating Entity and Contractor is executed.

4.2 Applicability of Master Agreement. NASPO ValuePoint Master Agreement Terms and Conditions are applicable to any Order by a Participating Entity (and other Purchasing Entities covered by their Participating Addendum), except to the extent altered, modified, supplemented or amended by a Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
66 Participating Addendum, subject to Section III. For the purposes of illustration and not limitation, this authority may apply to unique delivery and invoicing requirements, confidentiality requirements, defaults on Orders, governing law and venue relating to Orders by a Participating Entity, indemnification, and insurance requirements. Statutory or constitutional requirements relating to availability of funds may require specific language in some Participating Addenda in order to comply with applicable law. The expectation is that these alterations, modifications, supplements, or amendments will be addressed in the Participating Addendum or, with the consent of the Purchasing Entity and Contractor, may be included in the ordering document (e.g., purchase order or contract) used by the Purchasing Entity to place the Order.

4.3 Obligated Entities. Obligations under this Master Agreement are limited to those Participating Entities who have signed a Participating Addendum and Purchasing Entities within the scope of those Participating Addenda. States or other entities permitted to participate may use an informal competitive process to determine which Master Agreements to participate in through execution of a Participating Addendum. Participating Entities incur no financial obligations on behalf of other Purchasing Entities.

4.4 Notice of Participating Addendum. Contractor shall email a fully executed PDF copy of each Participating Addendum to [email protected] to support documentation of participation and posting in appropriate databases.

4.5 Participating Entities.

4.5.1 If not proscribed by law or by the Chief Procurement Official of the state in which the entity is located, an entity may be eligible to execute a Participating Addendum directly with Contractor. Such entities may include:

4.5.1.1 Political subdivisions, public agencies, and service districts;

4.5.1.2 Public and private educational institutions, including K-12 public, charter, and private schools; institutions of higher education; and trade schools;

4.5.1.3 Federally recognized tribes;

4.5.1.4 Quasi-governmental entities; and

4.5.1.5 Eligible non-profit organizations.

4.5.2 Prior to execution of a Participating Addendum with an entity listed above, Contractor shall coordinate with NASPO to confirm the entity’s eligibility to execute a Participating Addendum. A determination that an entity is eligible to execute a Participating Addendum is not a determination that procurement authority exists; Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
67 each entity must ensure it has the requisite procurement authority to execute a Participating Addendum.

4.6 Prohibition on Resale. Subject to any specific conditions included in the solicitation or Contractor’s proposal as accepted by the Lead State, or as explicitly permitted in a Participating Addendum, Purchasing Entities may not resell Products purchased under this Master Agreement. Absent any such condition or explicit permission, this limitation does not prohibit: payments by employees of a Purchasing Entity for Products; sales of Products to the general public as surplus property; and fees associated with inventory transactions with other governmental or nonprofit entities and consistent with a Purchasing Entity’s laws and regulations. Any sale or transfer permitted by this subsection must be consistent with license rights granted for use of intellectual property.

4.7 Individual Customers. Except as may otherwise be agreed to by the Purchasing Entity and Contractor, each Purchasing Entity shall follow the terms and conditions of the Master Agreement and applicable Participating Addendum and will have the same rights and responsibilities for their purchases as the Lead State has in the Master Agreement and as the Participating Entity has in the Participating Addendum, including but not limited to any indemnity or right to recover any costs as such right is defined in the Master Agreement and applicable Participating Addendum for their purchases. Each Purchasing Entity will be responsible for its own charges, fees, and liabilities. The Contractor will apply the charges and invoice each Purchasing Entity individually.

4.8 Release of Information. Throughout the duration of this Master Agreement, Contractor must secure from the Lead State prior approval for the release of information that pertains to the potential work or activities covered by the Master Agreement. This limitation does not preclude publication about the award of the Master Agreement or marketing activities consistent with any proposed and accepted marketing plan.

4.9 No Representations. The Contractor shall not make any representations of NASPO ValuePoint, the Lead State, any Participating Entity, or any Purchasing Entity’s opinion or position as to the quality or effectiveness of the services that are the subject of this Master Agreement without prior written consent.

V. NASPO ValuePoint Provisions

5.1 Applicability. NASPO ValuePoint is not a party to the Master Agreement.

The terms set forth in Section V are for the benefit of NASPO ValuePoint as a third-party beneficiary of this Master Agreement.

5.2 Administrative Fees
Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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68 5.2.1 NASPO ValuePoint Fee. Contractor shall pay to NASPO ValuePoint, or its assignee, a NASPO ValuePoint Administrative Fee of one-quarter of one percent (0.25% or 0.0025) no later than sixty (60) days following the end of each calendar quarter. The NASPO ValuePoint Administrative Fee must be submitted quarterly and is based on all sales of products and services under the Master Agreement (less any charges for taxes or shipping). The NASPO ValuePoint Administrative Fee is not negotiable. This fee is to be included as part of the pricing submitted with a vendor’s response to the Lead State’s solicitation.

5.2.2 State Imposed Fees. Some states may require an additional fee be paid by Contractor directly to the state on purchases made by Purchasing Entities within that state. For all such requests, the fee rate or amount, payment method, and schedule for such reports and payments will be incorporated into the applicable Participating Addendum. Unless agreed to in writing by the state, Contractor may not adjust the Master Agreement pricing to include the state fee for purchases made by Purchasing Entities within the jurisdiction of the state. No such agreement will affect the NASPO ValuePoint Administrative Fee percentage or the prices paid by Purchasing Entities outside the jurisdiction of the state requesting the additional fee.

5.3 NASPO ValuePoint Summary and Detailed Usage Reports

5.3.1 Sales Data Reporting. In accordance with this section, Contractor shall report to NASPO ValuePoint all Orders under this Master Agreement for which Contractor has invoiced the ordering entity or individual, including Orders invoiced to Participating Entity or Purchasing Entity employees for personal use if such use is permitted by this Master Agreement and the applicable
Participating Addendum (“Sales Data”). Timely and complete reporting of Sales Data is a material requirement of this Master Agreement. Reporting requirements, including those related to the format, contents, frequency, or delivery of reports, may be updated by NASPO ValuePoint with reasonable notice to Contractor and without amendment to this Master Agreement. NASPO ValuePoint shall have exclusive ownership of any media on which reports are submitted and shall have a perpetual, irrevocable, non-exclusive, royalty free, and transferable right to display, modify, copy, and otherwise use reports, data, and information provided under this section.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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69 5.3.2 Summary Sales Data. “Summary Sales Data” is Sales Data reported as cumulative totals by state. Contractor shall, using the reporting tool or template provided by NASPO ValuePoint, report Summary Sales Data to NASPO ValuePoint for each calendar quarter no later than thirty (30) days following the end of the quarter. If Contractor has no reportable Sales Data for the quarter, Contractor shall submit a zero-sales report.

5.3.3 Detailed Sales Data. “Detailed Sales Data” is Sales Data that includes for each Order all information required by the Solicitation or by NASPO ValuePoint, including customer information, Order information, and line-item details. Contractor shall, using the reporting tool or template provided by NASPO ValuePoint, report Detailed Sales Data to NASPO ValuePoint for each calendar quarter no later than thirty (30) days following the end of the quarter. Detailed Sales Data shall be reported in the format provided in the Solicitation or provided by NASPO ValuePoint. The total sales volume of reported Detailed Sales Data shall be consistent with the total sales volume of reported Summary Sales Data.

5.3.4 Sales Data Crosswalks. Intentionally omitted.

5.3.5 Executive Summary. Contractor shall, upon request by NASPO ValuePoint, provide NASPO ValuePoint with an executive summary that includes but is not limited to a list of states with an active Participating Addendum, states with which Contractor is in negotiations, and any Participating Addendum roll-out or implementation activities and issues. NASPO ValuePoint and Contractor will determine the format and content of the executive summary.

5.4 NASPO ValuePoint Cooperative Program Marketing, Training, and Performance Review

5.4.1 Staff Education. Contractor shall work cooperatively with NASPO ValuePoint personnel. Contractor shall present plans to NASPO ValuePoint for the education of Contractor’s contract
administrator(s) and sales/marketing workforce regarding the Master Agreement contract, including the competitive nature of NASPO ValuePoint procurements, the master agreement and participating addendum process, and the manner in which eligible entities can participate in the Master Agreement.

5.4.2 Onboarding Plan. Upon request by NASPO ValuePoint, Contractor shall, as Participating Addendums are executed, provide plans to launch the program for the Participating Entity. Plans will Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
70 include time frames to launch the agreement and confirmation that the Contractor’s website has been updated to properly reflect the scope and terms of the Master Agreement as available to the Participating Entity and eligible Purchasing Entities.

5.4.3 Annual Contract Performance Review. Contractor shall participate in an annual contract performance review with the Lead State and NASPO ValuePoint, which may at the discretion of the Lead State be held in person and which may include a discussion of marketing action plans, target strategies, marketing materials, Contractor reporting, and timeliness of payment of administration fees.

5.4.4 Use of NASPO ValuePoint Logo. The NASPO ValuePoint logos may not be used by Contractor in sales and marketing until a separate logo use agreement is executed with NASPO ValuePoint.

5.4.5 Most Favored Customer. Contractor shall, within thirty (30) days of their effective date, notify the Lead State and NASPO ValuePoint of any contractual most-favored-customer provisions in third-party contracts or agreements that may affect the promotion of this Master Agreement or whose terms provide for adjustments to future rates or pricing based on rates, pricing in, or Orders from this Master Agreement. Upon request of the Lead State or NASPO ValuePoint, Contractor shall provide a copy of any such provisions.

5.5 NASPO ValuePoint eMarketPlace

5.5.1 The NASPO ValuePoint cooperative provides an eMarketPlace for public entities to access a central online platform to view and/or purchase the goods, services, and solutions available from NASPO ValuePoint’s cooperative Master Agreements. This eMarketPlace is provided by NASPO at no additional cost to the Contractor or public entities. Its purpose is to facilitate the connection of public entities with Contractors who meet the requisite needs for a good, service, or solution by that entity through a NASPO ValuePoint Master Agreement.

5.5.2 Contractor shall cooperate in good faith with NASPO, and any third party acting as an agent on behalf of NASPO, to integrate Contractor’s industry presence by either an electronic hosted catalog, punchout site, or providing eQuotes through the NASPO eMarketPlace, per the Implementation Timeline as further described below.

5.5.3 Regardless of how Contractor’s presence is reflected in the eMarketPlace (i.e., hosted catalog, punchout site, or eQuote), Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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71 Contractor’s listed offerings must be strictly limited to Contractor’s awarded contract offerings through the NASPO award. Products and/or services not authorized through the resulting NASPO cooperative contract should not be viewable by NASPO ValuePoint eMarketPlace users. Furthermore, products and/or services not authorized through a Participating Addendum should not be viewable by NASPO ValuePoint eMarketPlace users utilizing that Participating Addendum. The accuracy of Contractor’s offerings through the eMarketPlace must be maintained by Contractor throughout the duration of the Master Agreement.

5.5.4 Contractor agrees that NASPO controls which Master Agreements appear in the eMarketPlace and that NASPO may elect at any time to remove any of Contractor’s offerings from the eMarketPlace.

5.5.5 Contractor is solely responsible for the accuracy, quality, and legality of Contractor’s Content on the eMarketPlace. “Content” means all information that is generated, submitted, or maintained by Contractor or otherwise made available by Contractor on the eMarketPlace, including Contractor catalogs. Contractor’s Content shall comply with and accurately reflect the terms and pricing of this Master Agreement.

5.5.6 Contractor’s use of the eMarketPlace shall comply with the eMarketPlace’s Terms of Use.

5.5.7 Contractor is solely responsible for the security and accuracy of transactions facilitated through the eMarketPlace, including the assessment, collection, and remittance of any sales tax.

5.5.8 Lead State reserves the right to approve all pricing, catalogs, and information on the eMarketPlace. This catalog review right is solely for the benefit of the Lead State and Participating Entities, and the review and approval shall not waive the requirement that products and services be offered at prices required by the Master Agreement.

5.5.9 NASPO Participating Entities may have their own procurement system, separate from the NASPO eMarketPlace, that enables the use of certain NASPO Master Agreements. In the event one of these entities elects to use this NASPO ValuePoint Master Agreement (available through the eMarketPlace) but publish to their own eMarketPlace, Contractor agrees to work in good faith with the entity and NASPO to implement the catalog.

5.5.10 In the event a Participating Entity has entity-specific catalog requirements set forth in its Participating Addendum (e.g., entity- Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
72 specific pricing, restrictions in the scope of offerings, etc.), Contractor shall ensure its eMarketPlace Content for that Participating Entity accurately reflects and is compliant with these requirements.

5.5.11 Implementation Timeline: Following the execution of Contractor’s Master Agreement, NASPO will provide a written request to Contractor to begin the onboarding process into the eMarketPlace.

Contractor shall have fifteen (15) days from receipt of written request to work with NASPO to set up an enablement schedule, at which time the technical documentation for onboarding shall be provided to Contractor. The schedule will include future calls and milestone dates related to test and go live dates.

5.5.11.1 Contractor’s NASPO eMarketPlace account with
eQuoting functionality shall minimally be established
within thirty (30) days following the written request.

5.5.11.2 Contractor shall deliver either a (1) hosted catalog or (2) punchout site, pursuant to the mutually agreed upon
enablement schedule.

5.5.11.3 NASPO will work with Contractor to decide which structures between hosted catalog, punchout site, and/or eQuoting as further described below will be provided by Contractor.

5.5.11.3.1 Hosted Catalog. By providing a hosted catalog, Contractor is providing a list of its awarded
products/services and pricing in an electronic data
file in a format acceptable to NASPO, such as a
tab delimited text file. Contractor is solely
responsible for ensuring the most up-to-date
versions of its product/service offerings approved
by the Lead State under this Master Agreement
are reflected in the eMarketPlace.

5.5.11.3.2 Punchout Site. By providing a punchout site, Contractor is providing its own online catalog,
which must be capable of being integrated with the
eMarketPlace as a Standard punchout via
Commerce eXtensible Markup Language (cXML).

Contractor shall validate that its online catalog is
up-to-date. The site must also return detailed
UNSPSC codes for each line item.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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73 5.5.11.3.3 eQuoting. NASPO will work with Contractor to set up participation and use to provide eQuotes
through the NASPO eMarketPlace. This
requirement would be in addition to any
requirement to provide a hosted catalog or
punchout site.

5.5.12 Hosted catalogs and punchout sites will provide all of the eMarketPlace standard data elements/information including, but not limited to, the following:

5.5.12.1 The most current pricing, including all applicable administrative fees and/or discounts, as well as the most up-to-date product/service offering the Contractor is
authorized to provide in accordance with this Master
Agreement;

5.5.12.2 A Lead State contract identification number for this Master Agreement;

5.5.12.3 Detailed product line item descriptions;

5.5.12.4 Pictures illustrating products, services, or solutions where practicable; and

5.5.12.5 Any additional NASPO, Lead State, or Participating Addendum requirements.

5.6 C
ancellation. In consultation with NASPO ValuePoint, the Lead State may, in its discretion, cancel the Master Agreement or not exercise an option to renew, when utilization of Contractor’s Master Agreement does not warrant further administration of the Master Agreement. The Lead State may also exercise its right to not renew the Master Agreement if the Contractor fails to record or report revenue for three consecutive quarters, upon 60-calendar day written notice to the Contractor. Cancellation based on nonuse or under- utilization will not occur sooner than two years after execution of the Master Agreement. This subsection does not limit the discretionary right of either the Lead State or Contractor to cancel the Master Agreement or terminate for default subject to the terms herein. This subsection also does not limit any right of the Lead State to cancel the Master Agreement under applicable laws.

5.7 Canadian Participation. Subject to the approval of Contractor, any Canadian provincial government or provincially funded entity in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, or Saskatchewan, and territorial government or territorial government funded entity in the Northwest Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
74 Territories, Nunavut, or Yukon, including municipalities, universities, community colleges, school boards, health authorities, housing authorities, agencies, boards, commissions, and crown corporations, may be eligible to use Contractor’s Master Agreement.

5.8 Additional Agreement with NASPO. Upon request by NASPO ValuePoint, awarded Contractor shall enter into a direct contractual relationship with NASPO ValuePoint related to Contractor’s obligations to NASPO ValuePoint under the terms of the Master Agreement, the terms of which shall be the same or similar (and not less favorable) than the terms set forth in the Master Agreement.

VI. Pricing, Payment & Leasing

6.1 Pricing. The discount percentages contained in this Master Agreement or offered under this Master Agreement represent the minimum discount to any Purchasing Entity.

6.1.1 All discount percentages must be guaranteed for the term of the Master Agreement.

6.1.2 Pricing shall be held static, or reduced, from order through delivery.

No pricing increases between order and delivery shall be accepted.

6.1.3 Any adjustment or amendment to the Master Agreement will not be effective unless approved in writing by the Lead State and Contractor.

6.1.4 No retroactive adjustments to prices or rates will be allowed.

6.2 P
ayment. Unless otherwise agreed upon in a Participating Addendum or Order, Payment after Acceptance will be made within thirty (30) days following the date the entire order is delivered or the date a correct invoice is received, whichever is later. After 45 days the Contractor may assess overdue account charges up to a maximum rate of one percent per month on the outstanding balance, unless a different late payment amount is specified in a Participating Addendum or Order, or otherwise prescribed by applicable law. Payments will be remitted in the manner specified in the Participating Addendum or Order. Payments may be made via a purchasing card with no additional charge.

6.3 Leasing or Alternative Financing Methods. The procurement and other applicable laws of some Purchasing Entities may permit the use of leasing or alternative financing methods for the acquisition of Products under this Master Agreement. Where the terms and conditions are not otherwise prescribed in an applicable Participating Addendum, the terms and conditions for leasing or alternative financing methods are subject to negotiation between the Contractor and Purchasing Entity.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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75 VII. Ordering

7.1 Order Numbers. Master Agreement order and purchase order numbers must be clearly shown on all acknowledgments, packing slips, invoices, and on all correspondence.

7.2 Quotes. Purchasing Entities may define entity-specific or project-specific requirements and informally compete the requirement among companies having a Master Agreement on an “as needed” basis. This procedure may also be used when requirements are aggregated or other firm commitments may be made to achieve reductions in pricing. This procedure may be modified in Participating Addenda and adapted to the Purchasing Entity’s rules and policies. The Purchasing Entity may in its sole discretion determine which Master Agreement Contractors should be solicited for a quote. The Purchasing Entity may select the quote that it considers most advantageous, cost, and other factors considered.

7.3 Applicable Rules. Each Purchasing Entity will identify and utilize its own appropriate purchasing procedure and documentation. Contractor is expected to become familiar with the Purchasing Entities’ rules, policies, and procedures regarding the ordering of supplies and/or services contemplated by this Master Agreement.

7.4 Required Documentation. Contractor shall not begin work without a valid Purchase Order or other appropriate commitment document under the law of the Purchasing Entity.

7.5 Term of Purchase. Orders may be placed consistent with the terms of this Master Agreement and applicable Participating Addendum during the term of the Master Agreement and Participating Addendum.

7.5.1 Orders must be placed pursuant to this Master Agreement prior to the termination date thereof, but may have a delivery date or performance period up to 120 days past the then-current termination date of this Master Agreement.

7.5.2 Notwithstanding the previous, Orders must also comply with the terms of the applicable Participating Addendum, which may further restrict the period during which Orders may be placed or delivered.

7.5.3 Financial obligations of Purchasing Entities payable after the current applicable fiscal year are contingent upon agency funds for that purpose being appropriated, budgeted, and otherwise made available.

7.5.4 Notwithstanding the expiration, cancellation or termination of this Master Agreement, Contractor shall perform in accordance with the terms of any Orders then outstanding at the time of such expiration Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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76 or termination. Contractor shall not honor any Orders placed after the expiration, cancellation, or termination of this Master Agreement, or in any manner inconsistent with this Master Agreement’s terms.

7.5.5 Orders for any separate indefinite quantity, task order, or other form of indefinite delivery order arrangement priced against this Master Agreement may not be placed after the expiration or termination of this Master Agreement, notwithstanding the term of any such indefinite delivery order agreement.

7.6 Order Form Requirements. All Orders pursuant to this Master Agreement, at a minimum, must include:

7.6.1 The services or supplies being delivered;

7.6.2 A shipping address and other delivery requirements, if any;

7.6.3 A billing address;

7.6.4 Purchasing Entity contact information;

7.6.5 Pricing consistent with this Master Agreement and applicable Participating Addendum and as may be adjusted by agreement of the Purchasing Entity and Contractor;

7.6.6 A not-to-exceed total for the products or services being ordered; and

7.6.7 The Master Agreement number or the applicable Participating Addendum number, provided the Participating Addendum
references the Master Agreement number.

7.7 Communication. All communications concerning administration of Orders placed must be furnished solely to the authorized purchasing agent within the Purchasing Entity’s purchasing office, or to such other individual identified in writing in the Order.

7.8 Contract Provisions for Orders Utilizing Federal Funds. Pursuant to Appendix II to 2 Code of Federal Regulations (CFR) Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, Orders funded with federal funds may have additional contractual requirements or certifications that must be satisfied at the time the Order is placed or upon delivery. These federal requirements may be proposed by Participating Entities in Participating Addenda and Purchasing Entities for incorporation in Orders placed under this Master Agreement.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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77 VIII. Shipping and Delivery

8.1 Shipping Terms. All deliveries, except as noted below, will be F.O.B. destination, freight pre-paid, with all transportation and handling charges paid by the Contractor.

8.1.1 Additional shipping charges for oversized or overweight items that require special shipping are allowed but must be identified as part of the ordering process.

8.1.2 Notwithstanding the above, responsibility and liability for loss or damage will remain the Contractor’s until final inspection and acceptance when responsibility will pass to the Purchasing Entity except as to latent defects, fraud, and Contractor’s warranty obligations.

8.2 Minimum Shipping. The minimum shipment amount, if any, must be contained in the Master Agreement. Any order for less than the specified amount is to be shipped with the freight prepaid and added as a separate item on the invoice. Any portion of an Order to be shipped without transportation charges that is back ordered will be shipped without charge.

8.3 Inside Deliveries. To the extent applicable, all deliveries will be “Inside Deliveries” as designated by a representative of the Purchasing Entity placing the Order. Inside Delivery refers to a delivery to a location other than a loading dock, front lobby, or reception area. Specific delivery instructions will be noted on the order form or Purchase Order. Costs to repair any damage to the building interior (e.g., scratched walls, damage to the freight elevator, etc.) caused by Contractor or Contractor’s carrier will be the responsibility of the Contractor. Immediately upon becoming aware of such damage, Contractor shall notify the Purchasing Entity placing the Order.

8.4 Packaging. All products must be delivered in the manufacturer’s standard package. Costs must include all packing and/or crating charges. Cases must be of durable construction, in good condition, properly labeled and suitable in every respect for storage and handling of contents. Each shipping carton must be marked with the commodity, brand, quantity, item code number and the Purchasing Entity’s Purchase Order number.

IX. Inspection and Acceptance

9.1 Laws and Regulations. Any and all Products offered and furnished must comply fully with all applicable Federal, State, and local laws and regulations.

9.2 Applicability. Unless otherwise specified in the Master Agreement, Participating Addendum, or ordering document, the terms of this Section IX will apply. This section is not intended to limit rights and remedies under the applicable commercial code.

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78 9.3 Inspection. All Products are subject to inspection at reasonable times and places before Acceptance. Contractor shall provide right of access to the Lead State, or to any other authorized agent or official of the Lead State or other Participating or Purchasing Entity, at reasonable times, to monitor and evaluate performance, compliance, and/or quality assurance requirements under this Master Agreement.

9.3.1 Products that do not meet specifications may be rejected. Failure to reject upon receipt, however, does not relieve the contractor of liability for material (nonconformity that substantial impairs value) latent or hidden defects subsequently revealed when goods are put to use.

9.3.2 Acceptance of such goods may be revoked in accordance with the provisions of the applicable commercial code, and the Contractor is liable for any resulting expense incurred by the Purchasing Entity related to the preparation and shipping of Product rejected and returned, or for which Acceptance is revoked.

9.4 Failure to Conform. If any services do not conform to contract requirements, the Purchasing Entity may require the Contractor to perform the services again in conformity with contract requirements, at no increase in Order amount. When defects cannot be corrected by re-performance, the Purchasing Entity may require the Contractor to take necessary action to ensure that future performance conforms to contract requirements and reduce the contract price to reflect the reduced value of services performed.

9.5 Acceptance Testing. Purchasing Entity may establish a process, in keeping with industry standards, to ascertain whether the Product meets the standard of performance or specifications prior to Acceptance by the Purchasing Entity.

9.5.1 The Acceptance Testing period will be thirty (30) calendar days, unless otherwise specified, starting from the day after the Product is delivered or, if installed by Contractor, the day after the Product is installed and Contractor certifies that the Product is ready for Acceptance Testing.

9.5.2 If the Product does not meet the standard of performance or specifications during the initial period of Acceptance Testing, Purchasing Entity may, at its discretion, continue Acceptance Testing on a day-to-day basis until the standard of performance is met.

9.5.3 Upon rejection, the Contractor will have fifteen (15) calendar days to cure. If after the cure period, the Product still has not met the standard of performance or specifications, the Purchasing Entity Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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79 may, at its option: (a) declare Contractor to be in breach and terminate the Order; (b) demand replacement Product from Contractor at no additional cost to Purchasing Entity; or, (c) continue the cure period for an additional time period agreed upon by the Purchasing Entity and the Contractor.

9.5.4 Contractor shall pay all costs related to the preparation and shipping of Product returned pursuant to the section.

9.5.5 No Product will be deemed Accepted and no charges will be paid until the standard of performance or specification is met.

X. Warranty

10.1 Applicability. Unless otherwise specified in the Master Agreement, Participating Addendum, or ordering document, the terms of this Section X will apply.

10.2 Warranty. The Contractor warrants for a period of one year from the date of Acceptance that: (a) the Product performs according to all specific claims that the Contractor made in its response to the solicitation, (b) the Product is suitable for the ordinary purposes for which such Product is used, (c) the Product is suitable for any special purposes identified in the solicitation or for which the Purchasing Entity has relied on the Contractor’s skill or judgment, (d) the Product is designed and manufactured in a commercially reasonable manner, and (e) the Product is free of defects.

10.3 Breach of Warranty. Upon breach of the warranty set forth above, the Contractor will repair or replace (at no charge to the Purchasing Entity) the Product whose nonconformance is discovered and made known to the Contractor. If the repaired and/or replaced Product proves to be inadequate, or fails of its essential purpose, the Contractor will refund the full amount of any payments that have been made.

10.4 Rights Reserved. The rights and remedies of the parties under this warranty are in addition to any other rights and remedies of the parties provided by law or equity, including, without limitation, actual damages, and, as applicable and awarded under the law, to a prevailing party, reasonable attorneys’ fees and costs.

10.5 Warranty Period Start Date. The warranty period will begin upon Acceptance, as set forth in Section IX.

XI. Product Title

11.1 Conveyance of Title. Upon Acceptance by the Purchasing Entity, Contractor shall convey to Purchasing Entity title to the Product free and clear of all liens, encumbrances, or other security interests.

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80 11.2 Embedded Software. Transfer of title to the Product must include an irrevocable and perpetual license to use any Embedded Software in the Product. If Purchasing Entity subsequently transfers title of the Product to another entity, Purchasing Entity shall have the right to transfer the license to use the Embedded Software with the transfer of Product title. A subsequent transfer of this software license will be at no additional cost or charge to either Purchasing Entity or Purchasing Entity’s transferee.

11.3 License of Pre-Existing Intellectual Property. Contractor grants to the Purchasing Entity a nonexclusive, perpetual, royalty-free, irrevocable, license to use, publish, translate, reproduce, transfer with any sale of tangible media or Product, perform, display, and dispose of the Intellectual Property, and its derivatives, used or delivered under this Master Agreement, but not created under it (“Pre-existing Intellectual Property”). The Contractor shall be responsible for ensuring that this license is consistent with any third-party rights in the Pre-existing Intellectual Property.

XII. Indemnification

12.1 General Indemnification. The Contractor shall defend, indemnify and hold harmless NASPO, NASPO ValuePoint, the Lead State, Participating Entities, and Purchasing Entities, along with their officers and employees, from and against third-party claims, damages or causes of action including reasonable attorneys’ fees and related costs for any death, injury, or damage to tangible property arising from any act, error, or omission of the Contractor, its employees or subcontractors or volunteers, at any tier, relating to performance under this Master Agreement.

12.2 Intellectual Property Indemnification. The Contractor shall defend, indemnify and hold harmless NASPO, NASPO ValuePoint, the Lead State, Participating Entities, Purchasing Entities, along with their officers and employees ("Indemnified Party"), from and against claims, damages or causes of action including reasonable attorneys’ fees and related costs arising out of the claim that the Product or its use infringes Intellectual Property rights of another person or entity ("Intellectual Property Claim").

12.2.1 The Contractor’s obligations under this section will not extend to any combination of the Product with any other product, system or method, unless the Product, system or method is:

12.2.1.1 provided by the Contractor or the Contractor’s subsidiaries or affiliates;

12.2.1.2 specified by the Contractor to work with the Product;

12.2.1.3 reasonably required to use the Product in its intended manner, and the infringement could not have been
avoided by substituting another reasonably available
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81 product, system or method capable of performing the
same function; or

12.2.1.4 reasonably expected to be used in combination with the Product.

12.2.2 The Indemnified Party shall notify the Contractor within a reasonable time after receiving notice of an Intellectual Property Claim. Even if the Indemnified Party fails to provide reasonable notice, the Contractor shall not be relieved from its obligations unless the Contractor can demonstrate that it was prejudiced in defending the Intellectual Property Claim resulting in increased expenses or loss to the Contractor. If the Contractor promptly and reasonably investigates and defends any Intellectual Property Claim, it shall have control over the defense and settlement of the Intellectual Property Claim. However, the Indemnified Party must consent in writing for any money damages or obligations for which it may be responsible.

12.2.3 The Indemnified Party shall furnish, at the Contractor’s reasonable request and expense, information and assistance necessary for such defense. If the Contractor fails to vigorously pursue the defense or settlement of the Intellectual Property Claim, the Indemnified Party may assume the defense or
settlement of the Intellectual Property Claim and the Contractor shall be liable for all costs and expenses, including reasonable attorneys’ fees and related costs, incurred by the Indemnified Party in the pursuit of the Intellectual Property Claim.

12.2.4 Unless otherwise set forth herein, Section 12.2 is not subject to any limitations of liability in this Master Agreement or in any other document executed in conjunction with this Master Agreement.

XIII. Insurance

13.1 Term. Contractor shall, during the term of this Master Agreement, maintain in full force and effect, the insurance described in this section. A Participating Entity may negotiate alternative Insurance requirements in their Participating Addendum.

13.2 Class. Contractor shall acquire such insurance from an insurance carrier or carriers licensed to conduct business in each Participating Entity’s state and having a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports. Failure to buy and maintain the required insurance may result in this Master Agreement’s termination or, at a Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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82 Participating Entity’s option, result in termination of its Participating Addendum.

13.3 Coverage. Coverage must be written on an occurrence basis. The minimum acceptable limits will be as indicated below:

13.3.1 Contractor shall maintain Commercial General Liability insurance covering premises operations, independent
contractors, products and completed operations, blanket contractual liability, personal injury (including death), advertising liability, and property damage, with a limit of not less than $1 million per occurrence and $2 million general aggregate;

13.3.2 Contractor must comply with any applicable State Workers Compensation or Employers Liability Insurance requirements.

13.4 Notice of Cancellation. Contractor shall pay premiums on all insurance policies. Contractor shall provide notice to a Participating Entity who is a state within five (5) business days after Contractor is first aware of expiration, cancellation or nonrenewal of such policy or is first aware that cancellation is threatened or expiration, nonrenewal or expiration otherwise may occur.

13.5 Notice of Endorsement. Prior to commencement of performance, Contractor shall provide to the Lead State a written endorsement to the Contractor’s general liability insurance policy or other documentary evidence acceptable to the Lead State that (1) provides that written notice of cancellation will be delivered in accordance with the policy provisions, and (2) provides that the Contractor’s liability insurance policy will be primary, with any liability insurance of any Participating State as secondary and noncontributory.

13.6 Participating Entities. Contractor shall provide to Participating States and Participating Entities the same insurance obligations and documentation as those specified in Section XIII, except the endorsement is provided to the applicable Participating State or Participating Entity.

13.7 Furnishing of Certificates. Contractor shall furnish to the Lead State copies of certificates of all required insurance in a form sufficient to show required coverage within thirty (30) calendar days of the execution of this Master Agreement and prior to performing any work. Copies of renewal certificates of all required insurance will be furnished within thirty (30) days after any renewal date to the applicable state Participating Entity. Failure to provide evidence of coverage may, at the sole option of the Lead State, or any Participating Entity, result in this Master Agreement’s termination or the termination of any Participating Addendum.

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83 13.8 Disclaimer. Insurance coverage and limits will not limit Contractor’s liability and obligations under this Master Agreement, any Participating Addendum, or any Purchase Order.

XIV. General Provisions

14.1 Records Administration and Audit

14.1.1 The Contractor shall maintain books, records, documents, and other evidence pertaining to this Master Agreement and Orders placed by Purchasing Entities under it to the extent and in such detail as will adequately reflect performance and administration of payments and fees. Contractor shall permit the Lead State, a Participating Entity, a Purchasing Entity, the federal government (including its grant awarding entities and the U.S. Comptroller General), and any other duly authorized agent of a
governmental agency, to audit, inspect, examine, copy and/or transcribe Contractor's books, documents, papers and records directly pertinent to this Master Agreement or orders placed by a Purchasing Entity under it for the purpose of making audits, examinations, excerpts, and transcriptions. This right will survive for a period of six (6) years following termination of this Agreement or final payment for any order placed by a
Purchasing Entity against this Master Agreement, whichever is later, or such longer period as is required by the Purchasing Entity’s state statutes, to assure compliance with the terms hereof or to evaluate performance hereunder.

14.1.2 Without limiting any other remedy available to any governmental entity, the Contractor shall reimburse the applicable Lead State, Participating Entity, or Purchasing Entity for any overpayments inconsistent with the terms of the Master Agreement or Orders or underpayment of fees found as a result of the examination of the Contractor’s records.

14.1.3 The rights and obligations herein exist in addition to any quality assurance obligation in the Master Agreement that requires the Contractor to self-audit contract obligations and that permits the Lead State to review compliance with those obligations.

14.2 Confidentiality, Non-Disclosure, and Injunctive Relief

14.2.1 Confidentiality. Contractor acknowledges that it and its employees or agents may, in the course of providing a Product under this Master Agreement, be exposed to or acquire
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84 information that is confidential to Purchasing Entity or Purchasing Entity’s clients.

14.2.1.1 Any and all information of any form that is marked as confidential or would by its nature be deemed
confidential obtained by Contractor or its employees
or agents in the performance of this Master
Agreement, including but not necessarily limited to (1) any Purchasing Entity’s records, (2) personnel
records, and (3) information concerning individuals, is confidential information of Purchasing Entity
(“Confidential Information”).

14.2.1.2 Any reports or other documents or items (including software) that result from the use of the Confidential
Information by Contractor shall be treated in the same
manner as the Confidential Information.

14.2.1.3 Confidential Information does not include information that (1) is or becomes (other than by disclosure by
Contractor) publicly known; (2) is furnished by
Purchasing Entity to others without restrictions similar to those imposed by this Master Agreement; (3) is
rightfully in Contractor’s possession without the
obligation of nondisclosure prior to the time of its
disclosure under this Master Agreement; (4) is
obtained from a source other than Purchasing Entity
without the obligation of confidentiality, (5) is
disclosed with the written consent of Purchasing
Entity; or (6) is independently developed by
employees, agents or subcontractors of Contractor
who can be shown to have had no access to the
Confidential Information.

14.2.2 Non-Disclosure. Contractor shall hold Confidential Information in confidence, using at least the industry standard of
confidentiality, and shall not copy, reproduce, sell, assign, license, market, transfer or otherwise dispose of, give, or disclose Confidential Information to third parties or use Confidential Information for any purposes whatsoever other than what is necessary to the performance of Orders placed under this Master Agreement.

14.2.2.1 Contractor shall advise each of its employees and agents of their obligations to keep Confidential
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85 Information confidential. Contractor shall use
commercially reasonable efforts to assist Purchasing
Entity in identifying and preventing any unauthorized
use or disclosure of any Confidential Information.

14.2.2.2 Without limiting the generality of the foregoing, Contractor shall advise Purchasing Entity, applicable
Participating Entity, and the Lead State immediately if Contractor learns or has reason to believe that any
person who has had access to Confidential Information
has violated or intends to violate the terms of this
Master Agreement, and Contractor shall at its expense
cooperate with Purchasing Entity in seeking injunctive
or other equitable relief in the name of Purchasing
Entity or Contractor against any such person.

14.2.2.3 Except as directed by Purchasing Entity, Contractor will not at any time during or after the term of this
Master Agreement disclose, directly or indirectly, any
Confidential Information to any person, except in
accordance with this Master Agreement, and that upon
termination of this Master Agreement or at Purchasing
Entity’s request, Contractor shall turn over to
Purchasing Entity all documents, papers, and other
matter in Contractor's possession that embody
Confidential Information.

14.2.2.4 Notwithstanding the foregoing, Contractor may keep one copy of such Confidential Information necessary
for quality assurance, audits, and evidence of the
performance of this Master Agreement.

14.2.3 Injunctive Relief. Contractor acknowledges that Contractor’s breach of Section 14.2 would cause irreparable injury to the Purchasing Entity that cannot be inadequately compensated in monetary damages. Accordingly, Purchasing Entity may seek and obtain injunctive relief against the breach or threatened breach of the foregoing undertakings, in addition to any other legal remedies that may be available. Contractor acknowledges and agrees that the covenants contained herein are necessary for the protection of the legitimate business interests of Purchasing Entity and are reasonable in scope and content.

14.2.4 Purchasing Entity Law. These provisions will be applicable only to extent they are not in conflict with the applicable public disclosure laws of any Purchasing Entity.

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86 14.2.5 NASPO ValuePoint. The rights granted to Purchasing Entities and Contractor’s obligations under this section will also extend to NASPO ValuePoint’s Confidential Information, including but not limited to Participating Addenda, Orders or transaction data relating to Orders under this Master Agreement that identify the entity/customer, Order dates, line-item descriptions and volumes, and prices/rates. This provision does not apply to disclosure to the Lead State, a Participating State, or any governmental entity exercising an audit, inspection, or examination pursuant to this Master Agreement. To the extent permitted by law, Contractor shall notify the Lead State of the identity of any entity seeking access to the Confidential Information described in this subsection.

14.2.6 Public Information. This Master Agreement and all related documents are subject to disclosure pursuant to the Lead State’s public information laws.

14.3 Assignment/Subcontracts

14.3.1 Contractor shall not assign, sell, transfer, subcontract or sublet rights, or delegate responsibilities under this Master Agreement, in whole or in part, without the prior written approval of the Lead State.

14.3.2 The Lead State reserves the right to assign any rights or duties, including written assignment of contract administration duties, to NASPO ValuePoint and other third parties.

14.3.3 The contractor is permitted to make subcontract(s) with any other party for furnishing any of the work or services herein.

The Contractor shall be solely responsible for performance of the entire contract whether or not subcontractors are used. The Lead State shall not be involved in the relationship between the prime contractor and the subcontractor. Any issues that arise as a result of this relationship shall be resolved by the prime contractor. All references to the contractor shall be construed to encompass both the contractor and any subcontractors of the contractor.

14.4 Changes in Contractor Representation. The Contractor must, within ten (10) calendar days, notify the Lead State in writing of any changes in the Contractor’s key administrative personnel managing the Master Agreement.

The Lead State reserves the right to approve or reject changes in key personnel, as identified in the Contractor’s proposal. The Contractor shall propose replacement key personnel having substantially equal or better Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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87 education, training, and experience as was possessed by the key person proposed and evaluated in the Contractor’s proposal.

14.5 Independent Contractor. Contractor is an independent contractor.

Contractor has no authorization, express or implied, to bind the Lead State, Participating States, other Participating Entities, or Purchasing Entities to any agreements, settlements, liability or understanding whatsoever, and shall not to hold itself out as agent except as expressly set forth herein or as expressly set forth in an applicable Participating Addendum or Order.

14.6 Cancellation. Unless otherwise set forth herein, this Master Agreement may be canceled by either party upon sixty (60) days’ written notice prior to the effective date of the cancellation. Further, any Participating Entity may cancel its participation upon thirty (30) days’ written notice, unless otherwise limited or stated in the Participating Addendum. Cancellation may be in whole or in part. Any cancellation under this provision will not affect the rights and obligations attending Orders outstanding at the time of cancellation, including any right of a Purchasing Entity to indemnification by the Contractor, rights of payment for Products delivered and accepted, rights attending any warranty or default in performance in association with any Order, and requirements for records administration and audit. Cancellation of the Master Agreement due to Contractor default may be immediate.

14.7 Force Majeure. Neither party to this Master Agreement shall be held responsible for delay or default caused by fire, riot, unusually severe weather, other acts of God, or acts of war which are beyond that party’s reasonable control. The Lead State may terminate this Master Agreement upon determining such delay or default will reasonably prevent successful performance of the Master Agreement.

14.8 Defaults and Remedies

14.8.1 The occurrence of any of the following events will be an event of default under this Master Agreement:

14.8.1.1 Nonperformance of contractual requirements;

14.8.1.2 A material breach of any term or condition of this Master Agreement;

14.8.1.3 Any certification, representation or warranty by Contractor in response to the solicitation or in this
Master Agreement that proves to be untrue or
materially misleading;

14.8.1.4 Institution of proceedings under any bankruptcy, insolvency, reorganization or similar law, by or against Contractor, or the appointment of a receiver or similar Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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88 officer for Contractor or any of its property, which is not vacated or fully stayed within thirty (30) calendar days after the institution or occurrence thereof; or

14.8.1.5 Any default specified in another section of this Master Agreement.

14.8.2 Upon the occurrence of an event of default, the Lead State shall issue a written notice of default, identifying the nature of the default, and providing a period of fifteen (15) calendar days in which Contractor shall have an opportunity to cure the default.

The Lead State shall not be required to provide advance written notice or a cure period and may immediately terminate this Master Agreement in whole or in part if the Lead State, in its sole discretion, determines that it is reasonably necessary to preserve public safety or prevent immediate public crisis. Time allowed for cure will not diminish or eliminate Contractor’s liability for damages, including liquidated damages to the extent provided for under this Master Agreement.

14.8.3 If Contractor is afforded an opportunity to cure and fails to cure the default within the period specified in the written notice of default, Contractor shall be in breach of its obligations under this Master Agreement and the Lead State shall have the right to exercise any or all of the following remedies:

14.8.3.1 Any remedy provided by law;

14.8.3.2 Termination of this Master Agreement and any related Contracts or portions thereof;

14.8.3.3 Assessment of liquidated damages as provided in this Master Agreement;

14.8.3.4 Suspension of Contractor from being able to respond to future bid solicitations;

14.8.3.5 Suspension of Contractor’s performance; and

14.8.3.6 Withholding of payment until the default is remedied.

14.8.4 Unless otherwise specified in the Participating Addendum, in the event of a default under a Participating Addendum, a
Participating Entity shall provide a written notice of default as described in this section and shall have all of the rights and remedies under this paragraph regarding its participation in the Master Agreement, in addition to those set forth in its Participating Addendum. Unless otherwise specified in an Order, a Purchasing Entity shall provide written notice of default Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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89 as described in this section and have all of the rights and remedies under this paragraph and any applicable Participating Addendum with respect to an Order placed by the Purchasing Entity. Nothing in these Master Agreement Terms and
Conditions will be construed to limit the rights and remedies available to a Purchasing Entity under the applicable
commercial code.

14.9 Waiver of Breach. Failure of the Lead State, Participating Entity, or Purchasing Entity to declare a default or enforce any rights and remedies will not operate as a waiver under this Master Agreement, any Participating Addendum, or any Purchase Order. Any waiver by the Lead State, Participating Entity, or Purchasing Entity must be in writing. Waiver by the Lead State or Participating Entity of any default, right or remedy under this Master Agreement or Participating Addendum, or by Purchasing Entity with respect to any Purchase Order, or breach of any terms or requirements of this Master Agreement, a Participating Addendum, or Purchase Order will not be construed or operate as a waiver of any subsequent default or breach of such term or requirement, or of any other term or requirement under this Master Agreement, any Participating Addendum, or any Purchase Order.

14.10 Debarment. The Contractor certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in public procurement or contracting by any governmental department or agency. This certification represents a recurring certification made at the time any Order is placed under this Master Agreement. If the Contractor cannot certify this statement, attach a written explanation for review by the Lead State.

14.11 No Waiver of Sovereign Immunity

14.11.1 In no event will this Master Agreement, any Participating Addendum or any contract or any Purchase Order issued
thereunder, or any act of the Lead State, a Participating Entity, or a Purchasing Entity be a waiver of any form of defense or immunity, whether sovereign immunity, governmental immunity, immunity based on the Eleventh Amendment to the Constitution of the United States or otherwise, from any claim or from the jurisdiction of any court.

14.11.2 This section applies to a claim brought against the Participating Entities who are states only to the extent Congress has appropriately abrogated the state’s sovereign immunity and is not consent by the state to be sued in federal court. This section is also not a waiver by the state of any form of immunity, including but not limited to sovereign immunity and Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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90 immunity based on the Eleventh Amendment to the
Constitution of the United States.

14.12 Governing Law and Venue

14.12.1 The procurement, evaluation, and award of the Master Agreement will be governed by and construed in accordance with the laws of the Lead State sponsoring and administering the procurement. The construction and effect of the Master Agreement after award will be governed by the law of the state serving as Lead State. The construction and effect of any Participating Addendum or Order against the Master Agreement will be governed by and construed in accordance with the laws of the Participating Entity’s or Purchasing Entity’s state.

14.12.2 Unless otherwise specified in the RFP, the venue for any protest, claim, dispute or action relating to the procurement, evaluation, and award is in the state serving as Lead State.

Venue for any claim, dispute or action concerning the terms of the Master Agreement will be in the state serving as Lead State.

Venue for any claim, dispute, or action concerning any Order placed against the Master Agreement or the effect of a
Participating Addendum will be in the Purchasing Entity’s state.

14.12.3 If a claim is brought in a federal forum, then it must be brought and adjudicated solely and exclusively within the United States District Court for (in decreasing order of priority): the Lead State for claims relating to the procurement, evaluation, award, or contract performance or administration if the Lead State is a party; a Participating State if a named party; the state where the Participating Entity or Purchasing Entity is located if either is a named party.

14.13 Assignment of Antitrust Rights. Contractor irrevocably assigns to a Participating Entity who is a state any claim for relief or cause of action which the Contractor now has or which may accrue to the Contractor in the future by reason of any violation of state or federal antitrust laws (15 U.S.C. § 1-15 or a Participating Entity’s state antitrust provisions), as now in effect and as may be amended from time to time, in connection with any goods or services provided in that state for the purpose of carrying out the Contractor's obligations under this Master Agreement or Participating Addendum, including, at the Participating Entity's option, the right to control any such litigation on such claim for relief or cause of action.

14.14 Survivability. Unless otherwise explicitly set forth in a Participating Addendum or Order, the terms of this Master Agreement as they apply to the Contractor, Participating Entities, and Purchasing Entities, including but not Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

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91 limited to pricing and the reporting of sales and payment of administrative fees to NASPO ValuePoint, shall survive expiration of this Master Agreement and shall continue to apply to all Participating Addenda and Orders until the expiration thereof.

14.1 5 Discrimination. Discrimination (because of race, religion, color, national origin, sex, sexual orientation, gender identity, age, or disability) is prohibited.

This section applies only to contracts utilizing federal funds, in whole or in part.

During the performance of this contract, the contractor agrees as follows:

14.15.1 The contractor will not discriminate against any employee or applicant for employment because of race, religion, color, national origin, sex, sexual orientation, gender identity, or age.

The contractor further agrees to comply with the provisions of the Americans with Disabilities Act (ADA), Public Law 101 -336, and applicable federal regulations relating thereto prohibiting discrimination against otherwise qualified disabled individuals under any program or activity. The contractor agrees to provide, upon request, needed reasonable accommodations. The
contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, color, national origin, sex, sexual orientation, gender identity, age or disability. Such action shall include, but not be limited to the following; employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensations; and selection for training, including
apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non- discrimination clause.

14.15.2 The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, sex, sexual orientation, gender identity, age or disability.

14.15.3 The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
92 employment. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance.

14.15.4 The contractor will comply with all provisions of Executive Order No. 11246 of September 24, 1965 as amended, and of the rules, regulations and relevant orders of the Secretary of Labor.

14.15.5 The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, as amended, and by the rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, r ecords and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.

14.15.6 In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further government contracts or federally-assisted construction contracts in accordance with procedures authorized in Executive Order No. 11246 of
September 24, 1965, as amended, and such other sanctions may be imposed and remedies invoked as provided in or as otherwise provided by law.

14.15.7 The contractor will include the provisions of paragraphs (1) through (7) of section 202 of Executive Order 11246 in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor, issued pursuant to section 204 of Executive Order No. 11246 of September 24, 1965, as amended, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
93 14.16 Accessibility. Vendor hereby warrants that the products or services to be provided under this contract comply with the accessibility requirements of Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794d), and its implementing regulations set forth at Title 36, Code of Federal Regulations, part 1194. Vendor further warrants that the products or services to be provided under this contract comply with existing federal standards established under Section 255 of the Federal Telecommunications Act of 1996 (47 U.S.C. § 255), and its implementing regulations set forth at Title 36, Code of Federal Regulations, part 1193, to the extent the vendor's products or services may be covered by that act. Vendor agrees to promptly respond to and resolve any complaint regarding accessibility of its products or services which is brought to its attention.

XV. Pr
otest
Pursuant to KRS 45A.285, the Secretary of the Finance and Administration Cabinet, or his designee, shall have authority to determine protests and other controversies of actual or prospective offerors in connection with the solicitations or selection for award of a contract.

Any
actual or prospective offeror or contractor, who is aggrieved in connection with solicitation or selection for award of a contract, may a file protest with the Secretary of the Finance and Administration Cabinet. A protest or notice of other controversy must be filed promptly and in any event within two (2) calendar weeks after such aggrieved person knows or should have known of the facts giving rise thereto. All protests or notices of other controversies must be in writing and shall be addressed and mailed to:

Hol
ly M. Johnson, Secretary

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET
200 MERO STREET, 5TH FLOOR
FRANKFORT, KY 40622
The S
ecretary of Finance and Administration Cabinet shall promptly issue a decision in writing. A copy of that decision shall be mailed or otherwise furnished to the aggrieved party and shall state the reasons for the action taken.

The d
ecision by the Secretary of the Finance and Administration Cabinet shall be final and conclusive.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
94 Exh
ibit 1
Description of Goods and/or Services, Prices, and Discount Percentages

SERVICES AND GOODS AVAILABLE UNDER THIS MASTER AGREEMENT Contractor has been awarded all products and services in the awarded categories below.

Category Minimum Discount
Percentage

1. Janitorial Supplies, Equipment, and Sanitation Cleaning Chemicals 27%

2. Fasteners 27%

3. Material Handling 24%

4. Plumbing Equipment 28%

5. Power Sources 28%

6. Landscaping and Outdoor Supplies and Equipment 27%

7. Lamps, Lighting, Ballasts, and Equipment 35%

8. Heating, Ventilation, Air Conditioning (HVAC) 26%

9. Hand Tools 27%

10. Power Tools 27%

11. Electrical Supplies and Equipment 35%

12. Paint and Related Supplies 23%

13. Security 28%

14. Safety 28%

15. Other 5%
Pr
oducts and Services are available to Authorized Purchasers.

Addition or Deletion of Items or Services. The Lead State reserves the right to add new and similar items, by issuing a contract modification, to this contract with the consent of the Contractor. Until such time as the Contractor receives a modification, the Contractor shall not accept delivery orders from any Participating Entity referencing such items or services.

Return Policy: MSC has a 30-day return policy.

To return merchandise, customers must contact MSC to obtain a Return Authorization (RA) number which can be obtained by contacting their dedicated NASPO Customer Care Service team. Returns will not be accepted without an RA number. Returns should be sent back in the original packaging and condition to the original Customer Fulfillment Center with the RA number on the shipping label. Either an invoice copy or packing slip should also be included.

Any claims for discrepancies in shipment must be made within seven days of receipt of Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
95 merchandise. C.O.D. returns will not be accepted. Shipping charges for returned items must be prepaid. A restocking charge may apply.

Please note that hazardous materials are not returnable. Participating Entities will be required to inspect all hazardous materials deliveries prior to accepting the delivery.

Unaccepted hazardous materials can be returned to MSC through the freight company that delivered the materials by not accepting the delivery. Once hazardous materials are accepted for delivery MSC is unable to take these items back.

Additionally, altered, or etched items cannot be returned. Custom cut-to-length products are a final sale and may not be returned for credit. Unopened computer software can be returned for a credit but will only be replaced if considered defective.

In an instance where a defective item is identified by the customer, a replacement order will be entered immediately. The replacement will be subject to standard lead times if not stocked.

MSC can partner with our strategic suppliers to customize programs such as tool repair and replacement or regrinding. We would be happy to discuss a program based upon individual Participating Entity needs.

Exhibit 2
Environmentally Preferred Products
Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
96 1.1 Description of Goods and/or Services, Prices and Discount Percentages or Environmentally Preferred Products (if applicable).

1.2 Terms and Conditions for Environmentally Preferred
Products Accurate Labeling of Environmentally
Preferable Products (EPPs)
Offeror must certify in writing that all claims made about the environmental attributes of the products they are offering are consistent with the Federal Trade Commission’s (FTC’s) Guidelines for the Use of Environmental Marketing Terms. In addition, Offerors may be required to provide documentation, at the request of the Purchasing Entity that the products they are offering meet the Environmental Specifications for this contract.

Over the life of the Master Agreement if awarded, the Offeror must label the environmental attributes of all environmentally preferable products (EPPs) per the Environmental Specifications below in any catalogs, marketing materials, price lists, and online ordering portal associated with this contract. Upon request of the Purchasing Entity, the Offeror if awarded, must provide documentation that each EPP has the required third-party certification(s), minimum amount of recycled content, or other environmental attributes listed in the Environmental Specifications.

The Purchasing Entity reserves the right to require the Offeror if awarded, to remove any environmental claims that are false, vague, misleading or unsubstantiated in catalogs, price sheets, websites or other marketing materials that are provided to the Purchasing Entity under a Master Agreement or Participating Addendum, if awarded.

1.2.2 EPP Sales Reports
The Purchasing Entity reserves the right to request from the Vendor quarterly sales data over the life of this contract. This information must include details about the environmental attributes of the EPPs sold on this contract consistent with the Environmental Specifications. To facilitate consistent reporting on this contract, the Vendor may be required to submit its sales report using the Purchasing Entity’s Green Sales Report Template.

Training. Over the life of the contract, the Vendor at a minimum must offer educational/marketing materials and at least one training that can be accessed by contract users explaining its EPP labeling and reporting practices.

Enforcement. The Purchasing Entity may consider failure to comply with the Environmental Specifications for this contract as well as the EPP labeling, reporting, and training requirements described above to be grounds for termination of this contract.

Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
97 Exhibit 3
NASPO ValuePoint Detailed Sales Data Report Form
Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
98 Docusign Envelope ID: 969269A5-C81B-4CF3-B5BC-8F1184E9129C Docusign Envelope ID: 5AB11B5F-D109-4905-8F1B-FA13F7C6ADE3

ATTACHMENT B
99 VENDO

R MASTER AGREEMENT RENEWAL
Today’s Date: February 4, 2026 Agency: N/A
Buyer and Email Address: Nathan Durham
[email protected]
Contact: N/A
MA Number: MA-758-2500000411 Vendor: MSC Industrial Direct Co., DBA: MSC Industrial Supply
Commodity: Facilities MRO and Industrial
Supplies NASPO (MSC)
Contact: Keith Barr
[email protected]
The above referenced Master Agreement expires August 31, 2026. The terms of the contract allow for a two (2) year renewal through August 31, 2028, all parties (Commonwealth and Vendor) concurring, leaving one (1) renewal option remaining. Please indicate your concurrence or refusal and return the signed form by email to [email protected] no later than February 18, 2026. Vendor requests for contractual revisions, including price increases/decreases must accompany the renewal form. Failure to return the completed form by the due date may result in the forfeiture of all renewals and the issuance of a new solicitation. The Commonwealth cannot renew your Master Agreement after the expiration date.

Yes, I agree to renew.

No, I do not wish to renew. (Please explain why)
X
Signature (REQUIRED) Print/Typed Name Date eMail address Telephone Number David Haugh 02/11/2026 [email protected] 516-812-2000

ATTACHMENT B
100
1 (Rev. 12.16.25)

CITY OF STOCKT
ON

COOPERAT

IVE/PIGGYBACK PURCHASE

AGREEMENT

AMENDMENT
This Amendment Numb
er __1__ to the above-referen
ced Agreement is entered into on
September 1, 2
026, between the City
of Stockton (“City”) and Sid Tool
Co., Inc. DBA MSC
Industri
al Supply Co. “Contractor”.

RECITALS
The City
of Stockton Cooperative/Piggyback Purchase Agreement states the Cit y may
modify the
scope of services , and any
material extension or change in the scope shall be
memorial
ized in a written amendment prior to the performance of additional work; and The City
of Stockton Cooperative/Piggyback Purchase Agreement states that no variatio n
of the
terms of this Agreement shall be valid unless an Amendment is made in writing and signed by both p
arties; and
The City of Stock
ton Cooperative/Piggyback Agreement term states the City ha s the
option to extend the term
of this Agreement by written amendment, not to go beyond the ter m
stated i
n the COOP fully executed amendment; and
The City
needs to renew the term specified in the City
of Stockton Cooperative/Piggyback
Agreement term for facil
ities MRO and industri
al supplies; and
The City
needs to increase the compensa
tion, not to exceed the amount in
Section 3 of
the
Cooperativ
e/Piggyback Purchase Agreement by $175,000.00 to meet the City’s demand for
facilities
maintenance, repairs, and operating supplies, industrial supplies, and related products.

Now therefore,
the City and
the Contractor mutually ag
ree as follows:

1.The termination date in The Ci
ty of Stockton Cooperative/Piggyback Agreement term is
amended to: “August 31, 20
28”

2.The maximum not
to exceed amount to be paid to the Contractor, includi
ng, if auth
orized,
reimbursem
ent of expenses, in Secti
on 3 of the Cooperativ
e/Piggyback Purchase Agreement
will now re
ad as follows:
“3. Compensatio
n: City and Contractor do hereby enter into this Agreement for facil ities
maintenanc
e, repairs, and operating supplies, industrial supplies, and related products availa ble
in the
above -named C
OOP and associated documents incorporated herein as Exhibit A and reference
d in the attached quote Exhibit C. In no way shall
payment to the Contractor during the
term of thi
s Agreement exceed $275,000.00 for the pur
chase of facilities
maintenance, repairs,
and ope
rating supplies, industrial supplies, and related products. Any person signing this
Agreement on
behalf of City or Contractor does warrant that he or she has full authority to do so.” Initial max
imum not to exceed amount is $100,00

0.00 Increase
to the not to exceed amount is $175,00

0.00 Agreement
Number:

Amendment
Number:
426000366 1

ATTACHMENT C
101
2 (Rev. 12.16.25)
Total
maximum compensation to be paid to the Contractor under this Agreement for the initi
al maxim
um and the incr
ease sha
ll not exceed $275,000.00.

All oth
er terms and conditions of th
e Agreement shal
l remain unchan
ged and remain in full
force a
nd effect unless modified by a written amendment signed by both parties.

IN WITNESS WHER
EOF, the authorized parties have executed this Agreement.

CONT
RACTOR

____________________________________________________________________________ Contrac
tor’s Name (if other than an individual, state whether a corporation, partnership, etc.):

____________________________________________________________________________ Authori
zed Signature Date

____________________________________________________________________________ Printed
Name and Title of Person Signing

____________________________________________________________________________ Address

CITY OF STOCKT
ON

____________________________________________________________________________ Johnn
y Ford, City Manag
er Date

ATTEST:
____________________________________________________________________________ Katheri
ne Roland, CMC, CPMC, City
Clerk

APPROVED
AS TO FORM:

Dan Lark
in, City Atto
rney

BY:

ATTACHMENT C
102
City of Stockton
Legislation Text
File #: 26-0988, Version: 1

APPOINTMENT OF INTERIM CITY CLERK

RECOMMENDATION
It is recommended that the City Council approve a resolution appointing Bonnie Paige as the Interim City Clerk for the City of Stockton and authorize the Mayor, on behalf of the City Council, to execute an employment contract with Bonnie Paige setting forth the conditions of employment (Exhibit 1 to the Resolution).

DISCUSSION
City Clerk Katherine Roland submitted her resignation effective September 26, 2026. To ensure the continuation of essential services, the City Council desires to appoint Bonnie Paige as Interim City Clerk effective September 16, 2026, while the City searches for a replacement.

Bonnie served as Stockton’sCity Clerk from July 11, 2011, to July 15, 2017. She is uniquely suited to serving as Stockton’s Interim City Clerk.

FINANCIAL SUMMARY
Bonnie Paige’scompensation will be paid at the rate of ninety-three dollars and eleven cents ($93.11) per hour, to be paid according to the payroll schedule in place for City employees. As a retired annuitant, she is not eligible to receive benefits from the City. There are sufficient funds available in the City Clerk’s budget for Fiscal Year 2026-27. There is no impact to the General Fund City of Stockton Printed on 9/11/2026Page 1 of 1
powered by Legistar™
103

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPOINTING BONNIE PA IGE AS INTERIM CITY CLERK FOR THE

CITY OF STOCKTON AND AUTHORIZING THE MAYOR TO EXECUTE THE

EMPLOYMENT CONTRACT

City Clerk Katherine Roland submitted her resignation effective September 26, 2026; and

To ensure the continuation of essential services, the City Council desires to appoint Bonnie Paige as Interim City Clerk effective September 16, 2026, while the City is searching for a replacement; and

Bonnie served as Stockton’s City Clerk from July 11, 2011, to July 15, 2017, and is uniquely suited to serving as Stockton’s Interim City Clerk; now, therefore

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

1. That effective September 16, 2026, Bonnie Paige is appointed to serve as Interim City Clerk for the City of Stockton.

2. The Mayor is authorized, on behalf of the City Council, to execute the attached Employment Agreement marked as Exhibit 1, setting forth the terms and conditions of employment.

3. The City Manager is further authorized and directed to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED September 15, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

____

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
104

EXHIBIT 1

1 | P a g e EMPLOYMENT AGREEMENT FOR INTERIM CITY CLERK

EMPLOYMENT AGREEMENT
FOR

INTERIM CITY CLERK

This Employment Agreement ("Agreement") is made by and between the CITY OF STOCKTON (“City”) a California municipal corporation and Charter city , and Bonnie Paige (“Paige”), an individual , (collectively, the “Parties”) on the following terms and conditions:

RECITALS

A. City desires to employ the services of Paige to temporarily carry out the duties and responsibilities of Interim City Clerk in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement.

B. City’s City Clerk position will be vacant effective September 27, 2026.

C. City has commenced an open recruitment to permanently fill the upcoming City Clerk vacancy.

D. City desires to accept employment of an Interim City Clerk in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement.

E. Paige represents that she is a retired annuitant and person receiving a benefit from the California Public Employees' Retirement System ("CalPERS") within the meaning of Government Code sections 7522.56 and 21221(h). Paige acknowledges that she is restricted to working no more than a combined 960 hours for City, a state agency, or other CalPERS contracting agencies (collectively "CalPERS Agencies") during City's 2026-2027 fiscal year, or for any additional or subsequent fiscal year, and that her compensation is statutorily limited as provided in Government Code section 21221(h). Paige represents that she has not received any unemployment compensation from any CalPERS Agencies during the 12-month period preceding the effective date of this Agreement. Paige further represents her CalPERS retirement date became effective prior to the 180-day period preceding the effective date of this Agreement; that she has not received a retirement incentive upon retirement within the meaning of Government Code section 7522.56(g), and that she has attained normal retirement age within the meaning of Government Code section 21220.5; and

F. City has determined that it is necessary to hire Paige, a retired annuitant, because the position of Interim City Clerk requires special skills and training, and Paige, by virtue of her significant experience and training as a City Clerk, has those special skills and training.

105

EXHIBIT 1

2 | P a g e EMPLOYMENT AGREEMENT FOR INTERIM CITY CLERK

G. OPERATIVE PROVISIONS

In consideration of the promises and covenants contained herein, the parties agree as follows:

1. Position and Duties.

1.1 Position. Paige accepts employment with City as its Interim City Clerk and shall perform all functions, duties and services set forth in the attached City Clerk Classification description ("Exhibit A"). Without additional compensation, Paige shall also provide such other services as are customary and appropriate to the position of City Clerk . Paige shall devote her best efforts and attention to the performance of these duties. Paige shall provide service at the direction and under the supervision of the City Council.

1.2 Term. This Agreement shall be effective as approved by the City Council on September 15, 2026. Paige shall commence the performance of her duties as the Interim City Clerk on September 16, 2026 ("Commencement Date"). This Agreement shall expire as of the first of the following to occur: (i) July 1, 2027; (ii) upon the employment commencement date of a new permanent City Clerk employed by City; (iii) upon Paige working her 960th hour for City including hours worked for other CalPERS Agencies during CITY's 2026-2027 fiscal year; or (iv) upon termination of the Agreement by either Paige or City as provided in Section 4 [Termination] of this Agreement.

1.3 At-Will. Paige acknowledges that she is an at-will, temporary employee of City who shall serve at the pleasure of the City at all times during the period of her service under this Agreement and that her employment may be terminated at any time and for any or no reason with or without cause as provided for in Section 4 [TERMINATION] of this Agreement or by operation of California or federal law.

1.4 Hours of Work. Paige shall devote the time necessary to adequately perform her duties as Interim City Clerk including, without limitation, attendance at regular and special City Council meetings.

2. Compensation.

2.1 Rate of Pay. For all services performed by Paige as the Interim City Clerk under this Agreement, City shall pay Paige compensation at the rate of ninety- three dollars and eleven cents ($93.11) per hour, to be paid according to the payroll schedule in place for City employees and subject to the limitations provided below.

2.2 Compliance with CalPERS Requirements. It is the intent of the parties to compensate Paige only to the extent permitted under Government Code 106

EXHIBIT 1

3 | P a g e EMPLOYMENT AGREEMENT FOR INTERIM CITY CLERK sections 21221(h) and 7522.56(d) and corresponding CalPERS regulations and policy statements. The parties acknowledge and agree that the rate of pay set forth above does not exceed the salary limitations established by CalPERS based on the salary as set forth in the City's publicly available salary schedule.

2.2.1 Recording and Reporting of Hours Worked. The parties will comply with all applicable CalPERS regulations governing employment after retirement including recording and reporting of all hours worked to CalPERS as may be required.

Additionally, Paige shall keep C ity continually apprised of any hours worked by Paige for other CalPERS Agencies during the term of this Agreement.

2.3 Benefits.

2.3.1 No Benefits. Pursuant to Government Code section 21221(h) and related CalPERS regulations and policy statements, Paige shall not receive from City any benefits City commonly provides to its employees including, without limitation, health, dental, or vision insurance coverage, life insurance, employee assistance programs, and similar benefits.

3. Vacation and Leave.

3.1 No Paid Leave. In ac cordance with Government Code section 21221(h) and related CalPERS regulations and policy statements, Paige shall not be provided or accrue any personal time off, vacation, sick leave, administrative leave, paid holidays or similar paid leave benefits.

4. Termination.

4.1 By City. This Agreement may be terminated by City for any reason fourteen (14) days after notice in writing to Paige of such termination. City's only obligation in the event of such termination will be payment to Paige of all compensation then due and owing as set forth in Section 2.1 [Rate of Pay] up to and including the effective date of termination. However, this Agreement may be terminated immediately if necessitated by changes to CalPERS statutory or regulatory requirements.

4.2 By Paige. This Agreement may be terminated by Paige for any reason fourteen (14) days after notice in writing to City of such termination. City shall have the option, in its complete discretion, to make Paige's termination effective at any time prior to the termination date given by Paige, provided City pays Paige all compensation as set forth in Section 2.1 [Rate of Pay] then due and owing through the last day actually worked. It is understood and agreed that any notice of termination should be given as soon as practicable and in the best interest of City.

107

EXHIBIT 1

4 | P a g e EMPLOYMENT AGREEMENT FOR INTERIM CITY CLERK

4.3 No Notice for Expiration. Nothing in this Section 4 [Termination] shall be construed to require either party to give advance written notice in order for the Agreement to expire as set forth in Section 1.2 [Term].

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

4.5 No Benefits Upon Termination. Paige agrees that he shall be entitled to no benefits upon termination

5. Conflict Of Interest.

Paige represents and warrants to City that she presently has no interest, and represents that she will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or interfere in any way with performance of his services under this Agreement.

6. General Provisions.

6.1 Recitals. The recitals, inclusive of all facts and representations, are incorporated into this Agreement as if set forth in the Operative Provisions.

6.2 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or email or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to C ity at the address below, and/or at the last known address maintained in Paige's personnel file. Paige agrees to notify C ity in writing of any change in her address during her employment with C ity.

Notice of change of address shall be effective only when accomplished in accordance with this Section.

CITY's Notice Address:

City of Stockton
501 W. Weber Avenue
Stockton, CA 95203
Attn: Mayor’s Office

INTERIM CITY CLERK'S Notice Address:

Bonnie Paige
[Deliver to last updated address in personnel file]
108

EXHIBIT 1

5 | P a g e EMPLOYMENT AGREEMENT FOR INTERIM CITY CLERK

7.4 Acknowledgment. Paige acknowledges that she has had the opportunity to consult legal counsel in regard to this Agreement, that she has read and understands this Agreement, that she is fully aware of its legal effect, and that she has entered into it freely and voluntarily and based on her own judgment and not on any representations or promises other than those contained in this Agreement.

IN WITNESS WHEREOF, City has caused this Agreement to be signed and executed on its behalf by its City Manager and Paige has signed and executed this Agreement, as of the date first indicated above.

CITY: INDIVIDUAL:

JOHNNY FORD BONNIE PAIGE

CITY MANAGER

APPROVED AS TO FORM

________________________________

DONALD LARKIN

INTERIM CITY ATTORNEY
109
City of Stockton
Legislation Text
File #: 26-0922, Version: 1

AUTHORIZE THE CITY MANAGER TO EXECUTE A LEASE FOR LINDEN LIBRARY WITH

MAGNASCO INVESTMENTS

RECOMMENDATION
It is recommended that the City Council adopt a motion authorizing the execution of a three-year lease with Magnasco Investments for the Linden Library facility, with a mutual option for an additional three-year term, and authorize the City Manager to take all appropriate and necessary actions to carry out the purpose and intent of this motion.

Summary
The City of Stockton manages the Stockton-San Joaquin County Public Library System (“Library”) through an agreement with San Joaquin County. The Library operates library branches throughout Stockton and San Joaquin County, including the Linden Library.

The Linden Library has operated at 19059 E. Main Street (Highway 26), Linden, in a commercial space owned by Magnasco Investments since 2004. The current lease term is approaching expiration, and staff recommends entering into a new lease to allow the Library to continue providing services at the existing location.

The proposed lease provides for an initial three-year term ending August 31, 2029, with a mutual option for an additional three-year term through August 31, 2032. Monthly lease payments will begin at $3,452 and increase annually over the term of the agreement.

DISCUSSION
Background
Linden is an unincorporated community located east of Stockton in San Joaquin County. The community does not have a government building or other permanent location available for a public library. The Linden Library has operated continuously at its current location since 2004 under a series of lease agreements with Magnasco Investments. The facility is centrally located in the Linden community, in a commercial area, with parking available for library patrons and staff.

In 2021, the City Council authorized a three-year lease for the facility with an option for an additional three-year term. The Library has continued operating from this location under that agreement.

Present Situation
The Library desires to continue providing consistent library services to the Linden community at the City of Stockton Printed on 9/11/2026Page 1 of 3
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existing location. Magnasco Investments has agreed to enter into a new lease with the City for continued operation of the Linden Library at 19059 E. Main Street (Highway 26).

The proposed agreement provides for an initial three-year lease term beginning upon execution of the agreement and ending August 31, 2029. The agreement also provides a mutual option for an additional three-year renewal term beginning September 1, 2029, and ending August 31, 2032. To exercise the renewal option, the City must provide written notice requesting renewal on or before May 1, 2029, and Magnasco Investments must agree to the renewal.

Monthly lease payments during the initial term are as follows:

Lease Period Monthly Payment
Execution through August 31, 2027 $3,452
September 1, 2027 through August 31, 2028 $3,660
September 1, 2028 through August 31, 2029 $3,880
If the parties mutually exercise the three-year renewal option, monthly payments will be:

Renewal Period Monthly Payment
September 1, 2029 through August 31, 2030 $4,113
September 1, 2030 through August 31, 2031 $4,360
September 1, 2031 through August 31, 2032 $4,622
The $2,300 security deposit paid under a prior lease will continue to be held by the property owner and will satisfy the security deposit requirement under the new agreement.

Under the proposed lease, the Library will continue to be responsible for operational expenses associated with the facility, including interior pest control, internet and information technology services, janitorial services, operational and cleaning supplies, garbage service, security, telephone service, and certain minor repairs and maintenance. The property owner will remain responsible for major building systems and structural maintenance, including the foundation, exterior and load- bearing walls, HVAC, plumbing, electrical systems, roof, exterior pest control, parking lot, landscaping, and other building systems identified in the agreement. The Library will remain responsible for the first $1,000 annually in eligible daily repairs and maintenance, with individual repair invoices not to exceed $200.

Continuing the lease at the existing location will allow the Library to maintain uninterrupted services in Linden without the costs and operational impacts associated with relocating the branch.

It is recommended that the City Council authorize the City Manager to execute the proposed lease with Magnasco Investments and take all appropriate and necessary actions to carry out the purpose and intent of the motion.

FINANCIAL SUMMARY
The Stockton-San Joaquin County Library Operating Agreement provides County funds and financial City of Stockton Printed on 9/11/2026Page 2 of 3
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resources to operate and manage County library branches, including the Linden Library. Lease and operational expenses associated with the Linden Library are funded through the annual allocation of San Joaquin County funds. Monthly rent under the proposed lease will begin at $3,452 and increase to $3,880 during the initial three-year term. If the mutual three-year renewal option is exercised, the monthly rent will increase from $4,113 in the first renewal year to $4,622 in the final renewal year.

The existing $2,300 security deposit will continue to be held by the property owner, and no additional security deposit is required at execution of the proposed agreement.

Lease payments and related operational costs are included in the Library Approved Budget and will continue to be included in future year budgets in account 5012-810-630017-100-120-40-50-000-000.

There is no financial commitment to the City's General Fund resulting from the recommended action.

All operational costs for the Linden Library are funded by San Joaquin County through the Stockton- San Joaquin County Library Operating Agreement.

Attachment A - 2026 Commercial Lease Agreement for Linden Library City of Stockton Printed on 9/11/2026Page 3 of 3
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2026 COMMERCIAL LEASE AGREEMENT

FOR LINDEN LIBRARY
This Lease ("Agreement") is made and entered into on _______________________ by and between the City of Stockton, a municipal corporation organized and existing under the laws of the State of California on behalf of the Stockton -San Joaquin County Public Library System (Lessee) and Magnasco Investments , a California General Partnership ("Lessor") for the purpose and use as a library facility. The Lessor and Lessee may be referred to collectively as "Parties" or in the singular as "Party" as the context requires.

ARTICLE 1: PREMISES
Lessor is the owner of land and improvements of the commercial property know and numbered as 19059 E. Main Street (Highway 26 ) in Linden, San Joaquin County, California ("Premises"). Lessee shall use the Premises for operating a public library.

ARTICLE 2: TERM, TERMINATION, AND DEFAULT

2.1 Initial Term. Parties agree the Lessor will lease the Premises to the Lessee for an Initial Term of three (3) years beginning on the date attested above and ending on August 31, 202 9, unless terminated in accordance with Section 2. 4 or a mutual option is exercised in accordance with Section 2.2.

2.2 Mutual Option for Renewal Term. If Lessee elects, and Lessor agrees, this Lease will extend for a Renewal Term of three (3) years, beginning on September 1, 2029, and terminating on August 31, 2032, provided that:

2.2.1 No material default or breach of this Lease has occurred and continues uncured for more than fifteen (15) days after written notice of default or breach, and

2.2.2 Lessee provides a written notice of Lessee's request to exercise the renewal option on or before May 1, 2029, and

2.2.3 The Renewal Term is subject to the same terms and conditions as are contained in this Lease, except that the monthly lease payment for the Renewal Term shall be specified in Article 3 Lease Payments below, and

2.3 Holdover. If at the expiration of the Term, including the Renewal Term, Lessee continues to use the Premises and follow the terms of this Lease with the consent of the Lessor, the Lease shall continue on a month-to-month basis, subject to all terms and

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conditions of the Lease. During the month-to-month operation , the Lease shall be terminable by either Party upon thirty (30) days' written notice.

2.4 Termination of Lease . This Lease can be terminated in accordance with the following provisions:

2.4.1 Breach. This Agreement may be terminated for breach according to Articles

2.5 through 2.10.

2.4.2 Mutual renewa l is not executed. If a mutual option for renewal i s not executed, the Lease shall terminate without further obligation by either Party on the last day of the term or another date as mutually agreed upon in writing.

2.4.3 Holdover. The Agreement may be terminated in the holdover term according to Article 2.3.

2.4.4 Mutual Agreement. Upon mutual agreement by the parties, and sixty (60) day written notice.

2.4.5 Damage and Destruction. In the event the Premises become unusable for the intended purpose because of dilapidation, condemnation, fire, or other casualty, Lessee shall have the right to terminate the lease thirty (30) days from date of damage.

2.4.6 Surrender. Upon expiration or other termination of this Lease, Lessee shall surrender Premises in good order as reasonable use and normal wear are accepted.

2.5 Lessee’s Default. Each of the following events shall be a default by Lessee and a breach of this Agreement:

2.5.1 Abandonment or surrender of the Premises or of the leasehold estate, or failure or refusal to pay when due any installment of rent or any other sum required by this Agreement to be paid by Lessee, or failure to perform as required or conditioned by any oth er covenant or condition of this Agreement;

2.5.2 The subjection of any right or interest of Lessee to attachment, execution, or other levy, or to seizure under legal process, if not released within 30 days, provided that the foreclosure of any mortgage permitted by provisions of this Agreement relating to purchase or construction of improvements shall not be construed as a default within the meaning of this paragraph;

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2.5.3 The appointment of a receiver to take possession of the Premises or improvements or of Lessee's interest in the leasehold estate or of Lessee's operations on the Premises for any reason, including but not limited to, assignment for benefit of creditors or voluntary or involuntary bankruptcy proceedings, but not including receivership (i) pursuant to administration of the estate of any deceased or incompetent Lessee, or of any deceased or incompetent individual member of any Lessee, or (ii) pursuant to any m ortgage permitted by provisions of
this Agreement relating to purchase or construction of improvements, or (iii) instituted by Lessor, the event of default being not the appointment of a receiver at Lessor's instance but the event justifying the receiversh ip, if any;

2.5.4 An assignment by Lessee for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Lessee under any law for the purpose of adjudicating Lessee a bankrupt; or for extending time for payment, adjustment, or satisfaction o f Lessee's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudications, custodies, and supervisions are dismissed, vacated, or otherwise permanently stayed or terminated within 30 days after the assignment, filing, or other initial event.

2.6 Notice of Default. As a precondition to pursuing any remedy for an alleged default by Lessee, Lessor shall, before pursuing any remedy, give notice of default to Lessee and to all qualifying sublessees or assignees whose names and addresses were previously given to Lessor in a notice or notices from Lessee or any sublessee or assignee stating that the notice was for the purpose of notice under this provision. A qualifying sublessee or assignee is a sublessee or assignee in possession under an existing sublease or assignment which is proper under this Agreement and approved in advance and in writing by Lessor. Each notice of default shall specify in detail the alleged event of default and the intended remedy.

2.7 Lessee’s Right to Cure Defaults . If the alleged default is nonpayment of rent, taxes, or other sums to be paid by Lessee as provided in Article 3, or elsewhere in this Agreement directed to be paid as rent, Lessee shall have 10 days after notice is given to cure the default. For the cu re of any other default if it is curable, Lessee shall promptly and diligently after the notice commence curing the default and shall have 30 days after notice is given to complete the cure, provided, however, that if the nature of Lessee’s Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. The Parties may agree, in

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writing, to an additional period for curing of the default if it is reasonably required, but never more than an additional 180 days.

2.8 Lessor’s Remedies . If any default by Lessee shall continue uncured, following notice of default as required by this Agreement, for the period applicable to the default under the applicable provision of this Agreement, or if Lessee has committed a non - curable lease violati on, Lessor has the following remedies in addition to all other rights and remedies provided by law or equity, to which Lessor may resort cumulatively or in the alternative:

2.8.1 Lessor may at Lessor's election terminate this Agreement by giving Lessee notice of termination. On the giving of the notice, all Lessee's rights in the Premises and in all improvements shall terminate. Within thirty (30) days after notice of termination, Lessee shall surrender and vacate the Premises and all improvements in broom -clean condition, and Lessor may reenter and take possession of the Premises and all remaining improvements and equipment and trade fixtures and eject all parties in possession or eject some and not others or eject none. Termination under this paragraph shall not relieve Lessee from the payment of any sum then due to Lessor or from any claim for damages previously accrued or then accruing against Lessee.

2.9 Notice of Lessor’s Default – Lessee’s Waiver. Lessor will not be in default under this Agreement unless (1) Lessee has given notice specifying the default and (2) Lessor has failed for 30 days to cure the default, if it is curable or to institute and diligently pursue reasonable corrective or ameliorative acts for non-curable defaults. Lessee shall have the right of termination for Lessor's default only after notice and Lessor’s failure to cure the default or implement reasonable corrective or ameliorative acts for non -curable defaults, within 30 days of the notice.

2.10 Unavoidable Default or Delay. Any prevention, delay, nonperformance, or stoppage due to any of the following causes shall excuse nonperformance for a period equal to any such prevention, delay, nonperformance, or stoppage, except the obligations imposed by this Agreement for the paym ent of rent, taxes, insurance, or obligations to pay money that are treated as rent. The causes referred to above are: strikes, lockouts, labor disputes, failure of power, irresistible superhuman cause, acts of public enemies of this state or of the United States, riots, insurrections, civil commotion, inability to obtain labor or materials or reasonable substitutes for either, governmental restrictions or regulations or controls (except those reasonably foreseeable in connection with the uses contemplated by this Agreement), casualties not contemplated by insurance provisions of this Agreement, or other causes beyond the reasonable control of the Party obligated to perform.

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ARTICLE 3: LEASE PAYMENTS

3.1 Initial Term Lease Payments . For the Initial Term, Lessee will pay Lessor a monthly amount in advance, on the first day of each calendar month, and no later than the seventh day of each month according to the following payment schedule in accordance with Section 3.3, Section 3.4, and Section 3.5.

Year 1 : $3,452.00 from above listed attest date to August 31, 2027 Year 2: $3,660.00 September 1, 2027 to August 31, 2028 Year 3: $3,880.00 September 1, 2028 to August 31, 2029

3.2 Renewal Term Lease Payments. For the Renewal Term, the payment schedule is listed below. Lessee will pay Lessor the identified monthly amount in advance, on the first day of each calendar month, and no later than the seventh day of each month according to the following payment schedule and in accordance with Section 3.3 and Section 3.4 below.

Year 4 $4,113.00 September 1, 2029 to August 31, 2030 Year 5 $4,360.00 September 1, 2030 to August 31, 2031 Year 6 $4,622.00 September 1, 2031 to August 31, 2032 and during a holdover term.

3.3 Delivery of Lease Payment . Each monthly payment will be delivered to Lessor 's Agent, Boysen Realty, located at 10933 E. Main Street (Highway 26), Linden, California 95236, or delivered to other such places designated via written notice by Lessor.

3.4 Delayed Lease Payment. Any payment received after the tenth of any month will be considered late and subject to a late payment penalty of $1 10.00 for each calendar month until cured.

3.5 Security Deposit. Under a prior Lease, Lessee made a security deposit and Lessor continues to hold the $2,300 security deposit. The security deposit will be held by Lessor without interest as security for performance of Lessee’s obligations under this Lease , including without limitation, surrender of possession of Premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of Lessee, Lessee shall on demand, deposit with Lessor the amount so applied so that the Lessor shall have the full deposit on hand at all times during the term of this Lease.

3.6 Damage or Destruction. If required, Lessee shall be relieved from payment of rent and other charges for any portion of time the Premises are unfit for use or occupancy.

ARTICLE 4: LEASE AGREEMENT AND RESPONSIBILITIES
The following expenses are the responsibility of the identified parties below:

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4.1 Lessee Responsibilities. The Lessee shall have sole responsibility for providing and paying for the following services , and those services shall be in the name of the Lessee:

4.1.1 Interior Pest Control

4.1.2 Internet service, internet equipment and internal network and external wiring if needed for connection.

4.1.3 Computers and related Information Technology services

4.1.4 Daily janitorial services, daily maintenance, and cleaning supplies to keep Premises in clean and sanitary order and condition.

4.1.5 Operational supplies

4.1.6 Garbage service

4.1.7 Security, security monitoring equipment.

4.1.8 Telephone equipment and monthly telephone service

4.1.9 Maintenance and repair according to 5.4 Repairs and Maintenance of Tenant Improvements and Article 5.6: Lessee Contribution to Repairs and Maintenance.

4.2 Lessor Responsibilities. The Lessor shall have the sole responsibility for providing and paying for the following services and equipment, and service contracts shall be in the name of the Lessor:

4.2.1 Telephone and communication equipment from utility distribution poles, conduits, right of way, and utility lines to the inside telephone panel,

4.2.2 Exterior pest control

4.2.3 Foundation, exterior walls of the building, and load-bearing walls

4.2.5 Maintenance and repair according to Article 5.3: Repairs and Maintenance by Lessor

4.2.6 Fire monitoring system, annual fire system inspection , and permit costs as required

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4.2.7 Building systems providing services and utilities, including e lectrical and gas connections, HVAC, wiring, plumbing, conduits, utility lines, and pipes

4.2.8 Adequate hot and cold water, sewer service , wastewater, stormwater drainage permit activities in the standard and customary manner

4.2.9 Maintenance and repair of the parking lot. One dedicated space directly behind the Library building exit door with additional shared parking for patrons and part time staff

4.2.10 Landscaping, hardscape, planting, and irrigation

4.2.11 Interior and exterior lighting, fixtures, and wiring.

4.2.12 Structural soundness of roof (both structure and membrane)

4.2.13 Installation of Keys according to Article 5.2: Right of Entry, Keys, and Security Codes.

4.2.14 Exterior lighting, fixtures (power, electric charges, installation, and repairs),

ARTICLE 5: FACILITY REPAIRS AND IMPROVEMENTS

5.1 Emergency Contacts. Parties will provide emergency phone numbers of key staff for issues at Premises. Parties will have the ability to communicate twenty-four hours a day when emergency maintenance or conditions occur. For non-urgent issues, Lessee will communicate with Lessor's Agent during regular business hours.

5.2 Right of Entry, Keys, and Security Codes. Lessee will have the right to access the building at all times during the Lease. Installation of locks and keys will be the responsibility of the Lessor except for two exterior doors (located along the sidewalk and rear gate area ) which are the responsibility of the Lessee . Lessee will provide a list of keyholders and phone numbers of persons eligible for security codes and keys to Lessor Agent. Upon termination of the Agreement, Lessee shall surrender all sets of keys to the Premises.

5.3 Repairs by Lessor . By taking possession of the Premises, Lessee shall be deemed to have accepted the Premises as being in acceptable sanitary order, condition, and repair. Lessor will be responsible for maintaining and repairing the Premises fixed structures, including but not limited to, HVAC system (heating cooling, ventilation), water for reasonable and everyday drinking, lavatory, plumbing including fixtures, water, wastewater, stormwater connections , electrical equipment and lines , windows, doors,

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built-ins, fencing, gates, electrical and mechanical systems, walkways, irrigation, graffiti removal, and vandalism repair. Lessor shall address health and safety repairs within 48 hours.

5.4 Repairs and Maintenance of Tenant Improvements. Lessee will request in writing or via email permission to make minor repairs, alterations, changes, or improvements.

Lessor will not be responsible for any tenant improvements, or repairs, alterations, or changes to tenant improvements within the Premises during the term of the Lease. Within 10 days of receipt of request, Lessor will notify Lesse e if there are objections to the request> Without objections, Lessee will move forward with the repair

5.5 Furniture, Fixtures, and Equipment . Lessee has supplied and furnished the Premises with the following tenant improvements: shelves, cabinets, countertops, display cases, display racks, office equipment, computer equipment, signage, and other furniture, fixtures, equipment, appliances , and materials for the operation of a public library that Lessee in its discretion elects to purchase for the Premises. Said items shall remain the property of Lessee, and Lessee shall immediately remove such personal property at the expiration or termination of this Lease.

5.6 Lessee Contribution to Repairs and Maintenance.
(a) Lessee is and will remain responsible for daily maintenance and janitorial costs of except for items identified in Section 5.3.
(b) Lessee shall , from time to time make expenditures for daily repairs and maintenance for tenant improvements or general repairs in accordance with good library standards, for the first $1,000 in repairs and maintenance for each year, from September 1 through August 31.
(c) Lessee expenditures shall not be for any invoice in excess of $200 or any repair(s) to structural and building systems that cannot be resolved for the "not to exceed" from September 1 to August 31 of any Lease term year.

ARTICLE 6: GENERAL AND SPECIAL TERMS AND CONDITIONS

6.1 Waiver. In the event either Lessor or Lessee at any time waive any breach of this Lease, by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Lease, whether of the same or of any other covenant, condition, or obligation.

6.2 Insurance Requirements. During the term of this Lease, Parties shall maintain in full force and effect at each Party 's own cost and expense the insurance coverage appropriate to this Lease . City will provide a copy of self -insurance letter upon attest of Lease.

6.3 Notices. The mailing address for Parties for all required notices is as follows:

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Lessor:

Magnasco Investments
3200 Synder
Stockton, CA 95215

Lessor Agent:

Peter Boysen Realty
10933 E. Main Street (Highway 26)
Linden, CA 95236
(209) 887-3391

Lessee:

Stockton- San Joaquin County Public Library System
City of Stockton
605 N. El Dorado Street
Stockton, CA 95202
(209) 937-8206

6.4 Heading Not Controlling. Headings used in this Lease are for reference purposes only and shall not be considered in construing this Lease.

6.5 Severability. If any portion of this Lease thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state, or city statute, ordinance, or regulation, the remaining provisions of the Lease shall remain in full force and effect to the extent that the provisions of the Lease are severable.

6.6 No Personal Liability . No official or employee of the City of Stockton and the Stockton San Joaquin County Public Library Syste m shall be personally liable to Lessor in the event of any default or breach by the City or for any amount due to the Lessor.

6.7 Applicable Law, Resolutions of Disputes, Forum, and Attorney Fees . California law shall govern any legal action pursuant to this Lease 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. The prevailing Party in any action brought to enforce or construe the terms of this Lease may recover from the other Party its reasonable costs and attorney 's fees expended in connection with such action.

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6.8 Force Majeure. Neither Party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power , or other acts or causes reasonably beyond the control of that Party. The Party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event and diligent efforts to re -commence performance as promptly as commercially practicable.

6.9 Assignment. Parties shall not assign, sublet, or transfer this Lease without the other Party's prior written consent , which shall not be unreasonably withheld, and then only upon such terms and conditions as Parties may set forth in writing.

6.10 Lessor Agent. Lessor assigned the obligations of Lease to an agent, Peter Boysen Realty and that relationship exists during the term of this Lease . The a gent's contact information is identified in Section 6.4 Notices. If this assignment changes, Lessor will immediately notify Lessee of change of Agent.

6.11 Possessory Interest and Real Estate Taxes. Lessor shall pay, prior to delinquency, all general real estate taxes and installments of special assessments coming due during the Lease Term on the Premises, and all personal property taxes with respect to Lessor’s personal property, if any, on the Premises. Lessee will be responsible to pay for all personal property taxes with respect to Lessee’s personal property, if any, on Premises. If the State of California or County of San Joaquin changes the manner in which property taxes are assessed, Lessor and Lessee shall met and confirm to review evidence of increase to Lessee and discuss and mutually agree upon the proportional share of the property tax increase resulting from new Legislation.

6.12 Entire Agreement, Integration, and Modification. This Lease represents the entire integrated Agreement between Lessor and the Lessee; supersedes all prior negotiations, representations, agreements, prior leases, either written or oral between the parties and may be amended only by a written Amendment signed by the Lessor and Lessee.

6.14 Authority and Execution. The undersigned hereby represent and warrant that they are authorized by the parties to execute this Lease. This Lease may be executed in counterparts, by fax, pdf, email, electronic copy, or digital signature, each of which shall be deemed to be an original, and such counterparts constitute one and the same Instrument.

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IN WITNESS WHEREOF, the Parties hereto have executed this Lease the day and first year hereinabove written.

ATTEST: CITY OF STOCKTON
________________________ BY: ______________________________

KATHERINE ROLAND, CMC, CPMC JOHNNY FORD

CITY CLERK CITY MANAGER

APPROVED AS TO FORM MAGNASCO INVESTMENTS

CITY ATTORNEY
BY: ______________________ BY: ______________________________

DONALD LARKIN

INTERIM CITY ATTORNEY

ATTACHMENT A
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City of Stockton
Legislation Text
File #: 26-0900, Version: 1

APPROVE A RESOLUTION TO ACCEPT AND APPROPRIATE BROWNFIELDS COMMUNITY-

WIDE ASSESSMENT GRANT FUNDING FROM THE UNITED STATES ENVIRONMENTAL

PROTECTION AGENCY

RECOMMENDATION
It is recommended that the City Council approve a resolution to:

1. Authorize the City Manager to accept and appropriate grant funding from the United States Environmental Protection Agency (EPA) in the amount of $500,000 for the FY 2026 Brownfields Community-Wide Assessment Grant Program; and

2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this resolution including executing, on behalf of the City of Stockton, all required contracts or agreements with the granting agency, provide additional information and furnish such documents as may be required, execute all documents and amendments or extensions pertaining to the grant project, and make all required appropriations in compliance with and for the purposes stated in the Project Agreement.

Summary
In January 2026, the Economic Development Department submitted an application to EPA requesting $500,000 under its FY 2026 Brownfields Community-Wide Assessment Grant Program. The City was subsequently selected to receive the grant award. Grant funds will support environmental assessment and reuse planning activities within three priority Target Areas: South Airport Way, Little Manila/Gleason Park, and the North Shore Waterfront. These areas contain vacant, underutilized, and potentially contaminated properties that can present barriers to redevelopment and productive reuse (Attachment A - Target Areas).

The grant will build upon the City’s existing Brownfields Program and previous EPA-funded assessment activities. Funding will be used for project management and reporting, community outreach, environmental site assessments, and remediation and reuse planning. The project is intended to improve the City’s understanding of environmental conditions at eligible brownfield properties and provide technical information to support future cleanup, redevelopment, and reuse decisions.

DISCUSSION
Background
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reuse of brownfield properties. In 2018, the City received an EPA Brownfields Coalition Community- Wide Assessment Grant that supported brownfields assessment and planning activities in the downtown and waterfront areas.

The FY 2026 Assessment Grant will continue this work while focusing on three Target Areas identified in the City’s application. Priority properties include sites along South Airport Way, Mormon Slough within the Little Manila/Gleason Park area, and 260 West Fremont Street within the North Shore Waterfront area. The project also complements existing City planning initiatives, including the Housing Action Plan, Neighborhood Action Plans, forthcoming Downtown Master Plan, and 2025- 2029 HUD Consolidated Plan.

Present Situation
EPA has awarded the City $500,000 for implementation of the FY 2026 Brownfields Community-Wide Assessment Grant. The City and EPA have developed a Work Plan establishing the activities and deliverables to be completed with the grant funding. The Work Plan includes four primary tasks:
· Project Management and Reporting: Grant administration; reporting; Assessment, Cleanup and Redevelopment Exchange System (ACRES) database updates; and project closeout. · Community Outreach: Updating the Community Involvement Plan; convening a Brownfields Advisory Committee; conducting community outreach meetings; and preparing public information materials.
· Phase I/II Environmental Site Assessments: Perform approximately fifteen (15) Phase I Environmental Site Assessments (ESA); up to eight (8) Phase II ESAs; regulated building material surveys; and associated quality assurance and sampling documents. · Remediation and Reuse Planning: Perform activities that could include, but are not limited to, an area wide-reuse plan, site-specific reuse planning, and additional site-specific remediation and/or reuse planning documents, including Analyses of Brownfields Cleanup Alternatives, as appropriate.

The assessment activities will allow the City to evaluate environmental conditions at eligible properties, reduce information gaps associated with potential contamination, prioritize sites for future cleanup and redevelopment activities, and better position properties for future federal, state, local, and private funding opportunities.

Council approval of the recommended actions will authorize acceptance of the EPA grant and establish the necessary budget appropriations to begin implementation of the approved Work Plan.

FINANCIAL SUMMARY
The grant program does not require matching funds, and there will be no impact to the City’s General Fund. Funds will be appropriated in the City Manager’s Special Grants Fund - Reimbursement, General Administrative Division.

Attachment A - Target Areas
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Target Areas and Priority Sites for EPA Brownﬁelds Community-Wide Assessment

ATTACHMENT A
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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION ACCEPTING AND APPROPRIATING BROWNFIELDS COMMUNITY -

WIDE ASSESSMENT GRANT FUNDING WITH THE ENVIRONMENTAL PROTECTION AGENCY, AND AMENDING THE FISCAL YEAR 2026-27 ANNUAL BUDGET

The City of Stockton (City) is interested in participating in the Brownfields Community-Wide Assessment Grant Program, which is administered by the U.S.

Environmental Protection Agency (EPA) to support Brownfields assessment activities and developing a pathway toward cleanup; and

Following the City’s January 2026 submittal of an Assessment Grant application, the EPA awarded the City $500,000 for a multi-year grant program beginning October 1, 2026; and

Grant funds will be used for Economic Development sta ff and consultant time to continue the City’s Brownfields Program; and

The grant activities will be focused on the Airport Way Corridor, Mormon Slough, and North Shore Waterfront areas, and will include environmental site assessments, an area-wide plan, a site-specific reuse plan, and one or more cleanup plans; now, therefore,

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

1. The City Manager, or designee, is authorized to accept and appropriate grant funding in the amount of $500,000 from the United States Environmental Protection Agency (EPA) for the F Y 2026 Brownfields Community -Wide Assessment Grant Program.

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2. The City Manager , or designee, is authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution , including executing, on behalf of the City of Stockton, all required contracts or agreements with the grant agency, provide additional information and furnish such do cuments as many be required, execute all documents and amendments or extensions pertaining to the grant project, and make all required appropriations in compliance with and for the purposes stated in the Project Agreement.

PASSED, APPROVED, and ADOPTED: September 15, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton

ATTEST:

___

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
128
City of Stockton
Legislation Text
File #: 26-0958, Version: 1

APPROVAL OF A TEMPORARY RECRUITMENT AND RETENTION INCENTIVE AND SIDE

LETTER AGREEMENTS FOR POLICE TELECOMMUNICATION CLASSIFICATIONS IN THE STOCKTON CITY EMPLOYEES’ ASSOCIATION AND THE STOCKTON MID-MANAGEMENT /

SUPERVISORY UNITS

RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached Side Letter Agreements between the City of Stockton (City) and the Stockton City Employees’ Association (SCEA) and the Stockton Mid-Management/Supervisory Level (B&C) Unit. The side letters establish a temporary recruitment and retention incentive for eligible employees in the Police Telecommunication classifications through June 30, 2029.

Summary
The City, the B&C unit, and the SCEA reached an agreement on temporary incentives intended to support the recruitment and retention of employees in designated Police Telecommunication classifications within the Police Department. The proposed side letter agreements provide a ten thousand dollar ($10,000) recruitment incentive for eligible newly hired employees paid out in two installments, and retention incentives totaling six thousand dollars ($6,000) for eligible current employees in specified Police Telecommunication classifications, consisting of three thousand dollars ($3,000) payable in 2026 and three thousand dollars ($3,000) payable in 2027.

The incentives are non-pensionable and are subject to applicable state and federal taxes. The side letter agreements will remain in effect through June 30, 2029, unless otherwise modified by mutual agreement of the parties.

DISCUSSION
Background
The City, the B&C Unit, and the SCEA previously entered into a Recruitment and Retention Side Letter Agreements to support the recruitment and retention of employees in the Police Telecommunication classifications within their respective bargaining units. This agreement sunset on June 30, 2026. The City continues to experience recruitment and retention challenges within the Police Telecommunications operations. Maintaining adequate staffing in these classifications is City of Stockton Printed on 9/11/2026Page 1 of 3
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File #: 26-0958, Version: 1
critical to meeting the operational needs of the Police Department and ensuring the continued delivery of emergency communications services.

To enhance the City's ability to recruit qualified candidates and retain experienced employees, the City, the B&C Unit, and the SCEA have agreed to temporary recruitment and retention incentives for designated Police Telecommunication classifications, as set forth in the proposed side letter agreements.

Present Situation
The proposed side letter agreements establish temporary recruitment and retention incentive programs for eligible new hires and current employees in the following classifications:
· Police Telecommunications Supervisor
· Police Telecommunicator I/II
· Police Telecommunicator Call Taker
The proposed recruitment and retention incentives are as follows:

1. New first-time hires in the specified Police Telecommunication classifications hired on or after July 1, 2026, will be eligible for a one-time signing bonus totaling ten thousand dollars ($10,000). The incentive will be paid in two installments:
· Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period following hire; and
· Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the employee's first anniversary of their employment.

2. Employees in the specified Police Telecommunication classifications who are employed as of September 15, 2026, will receive a three-thousand-dollar ($3,000) retention bonus payable by September 30, 2026.

3. Employees in the specified Police Telecommunication classifications who are employed as of September 15, 2027, will receive a three-thousand-dollar ($3,000) retention bonus payable by September 30, 2027.

Approval of the proposed side letter agreements will allow the City to implement the temporary incentives to support recruitment and retention of experienced and qualified employees within the Police Telecommunication operations.

FINANCIAL SUMMARY
The department currently has forty-eight positions within the specified classifications, with ten vacancies in the Police Telecommunicator and Police Call Taker classifications. To incentivize the filling of these positions, the department would need approximately $100,000, on a one-time basis, to implement the provisions of this side-letter agreement for newly hired employees. For the remaining thirty-eight current employees, the proposed incentive would require one-time funding of $228,000, City of Stockton Printed on 9/11/2026Page 2 of 3
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File #: 26-0958, Version: 1
bringing the total impact of this agreement to approximately $338,000. The department can fund this request through salary savings by reallocating funding to General Fund lines 3519-320-610000-100- 000-20-35-000-000- and 3519-320-610000-100-115-20-35-000-000-.

Attachment A -B&C Police Telecommunications Recruitment and Retention Side Letter Agreement Attachment B - SCEA Police Telecommunicator Recruitment and Retention Side Letter Agreement City of Stockton Printed on 9/11/2026Page 3 of 3
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Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2029, Between the City of Stockton and Mid-Management/ Supervisory Level (B&C) Unit This will confirm an understanding reached between the City of Stockton (hereinafter referred to as the “City”) and the Stockton Mid-Management/Supervisory Level (B&C) Unit A. Temporary Recruitment Incentives for Newly Hired Telecommunications Supervisors within the Police Department
In an effort to increase recruitment , the City and the Association have met and conferred and agree on the following:
1) All new first -time hires in the Police Telecommunications Supervisor classification are eligible for a ten thousand dollar ($10,000) signing bonus when hired on or after July 1, 2026. This provision shall sunset and become ineffective at 11:59 pm on June 30, 2029. This bonus is non-pensionable and subject to applicable state and federal taxes. The bonus will be distributed as follows:
a. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period upon hire.
b. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the first anniversary of the employee’s start date. c. Employees who separate prior to their first anniversa ry in the Police Telecommunications Supervisor classification will be required to reimburse the City $2,500 of the signing bonus which they received.
d. An employee who transfers into the Police Telecommunications Supervisor classification from the Fire Department , shall not be considered a new hire for purposes of this provision and shall not be eligible for the signing bonus.

B. Temporary Retention Incentives for Current Telecommunicat ions Supervisors within the Police Department
In an effort to increase retention of current employees, the City and the Association have met and conferred and agree on the following:
1) Each employee assigned to the Police Telecommunications Supervisor classification and employed as of September 15, 2026, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by September 30, 2026.

ATTACHMENT A
132
Side Letter Agreement – B&C Police Tele Supervisor Recruitment & Retention Incentives

Page 2 of 3 ends

2) Each employee assigned to the Police Telecommunications Supervisor classification and employed as of September 15, 2027, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by September 30, 2027. 3) The parties understand that the City has authorized allocation to fund the above - described temporary programs through June 30, 2029. Continuation of this temporary recruitment incentive shall be subject to available allocation through the City’s budget process.
4) This side letter agreement shall be effective upon the date this agreement is fully executed by the parties and shall sunset and become ineffective at 11:59 pm on June 30, 2029. This side letter shall not be included in any successor agreement between the parties unless both parties agree to extend this side letter. The provisions of this side letter are not subject to the grievance process.

FOR THE CITY: FOR THE ASSOCIATION:

______________________________________
Johnny Ford
City Manager

Date: _________________

______________________________________
Tony Silva
Labor Representative

Date: _________________

______________________________________
Gilbert Garcia
Administrative Services Director / Chief
Financial Officer

Date: _________________

______________________________________
Almarosa Vargas
B&C President

Date: _________________

_________________________________
Marie Guillory-Jones
Interim Director of Human Resources

Date: _________________

ATTACHMENT A
133
Side Letter Agreement – B&C Police Tele Supervisor Recruitment & Retention Incentives

Page 3 of 3 ends

Approved as to form:

________________________________
Donald A. Larkin
Interim City Attorney

Date: ________________

ATTACHMENT A
134
Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2029, Between the City of Stockton and the Stockton City Employees’ Association (SCEA) Unit
This will confirm an understanding reached between the City of Stockton (hereinafter referred to as the “City”) and the Stockton Mid-Management/Supervisory Level (B&C) Unit A. Temporary Recruitment Incentives for Newly Hired Telecommunicators within the Police Department
In an effort to increase recruitment , the City and the Association have met and conferred and agree on the following:
1) All new first -time hires in the Police T elecommunicator Call Taker, Police Telecommunicator I, and Police Telecommunicator II classifications are eligible for a ten thousand dollar ($10,000) signing bonus when hired on or after July 1, 2026. This provision shall sunset and become ineffective at 11:59 pm on June 30, 2029. This bonus is non -pensionable and subject to applicable state and federal taxes. The bonus will be distributed as follows:
a. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period upon hire.
b. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the first anniversary of the employee’s start date. c. Employees who separate prior to their first anniversa ry in a Police Telecommunicator classification will be required to reimburse the City $2,500 of the signing bonus which they received.
d. An employee who transfers into a Police Telecommunicator classification from the Fire Department , shall not be considered a new hire for purposes of this provision and shall not be eligible for the signing bonus.

B. Temporary Retention Incentives for Current Telecommunicat ors within the Police Department
In an effort to increase retention of current employees, the City and the Association have met and conferred and agree on the following:
1) Each employee assigned to the Police T elecommunicator Call Taker, Police Telecommunicator I, and Police Telecommunicator II classifications and employed

ATTACHMENT B
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Side Letter Agreement – SCEA Police Tele Supervisor Recruitment & Retention Incentives

Page 2 of 3 ends

as of September 15, 2026, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by September 30, 2026. 2) Each employee assigned to the Police T elecommunicator Call Taker, Police Telecommunicator I, and Police Telecommunicator II classifications and employed as of September 15, 2027, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by September 30, 2027. 3) The parties understand that the City has authorized allocation to fund the above - described temporary programs through June 30, 2029. Continuation of this temporary recruitment incentive shall be subject to available allocation through the City’s budget process.
4) This side letter agreement shall be effective upon the date this agreement is fully executed by the parties and shall sunset and become ineffective at 11:59 pm on June 30, 2029. This side letter shall not be included in any successor agreement between the parties unless both parties agree to extend this side letter. The provisions of this side letter are not subject to the grievance process.

FOR THE CITY: FOR THE ASSOCIATION:

______________________________________
Johnny Ford
City Manager

Date: _________________

______________________________________
Mehran Tahoori
SCEA Attorney

Date: _________________

______________________________________
Gilbert Garcia
Administrative Services Director / Chief
Financial Officer

Date: _________________

ATTACHMENT B
136
Side Letter Agreement – SCEA Police Tele Supervisor Recruitment & Retention Incentives

Page 3 of 3 ends

_________________________________
Marie Guillory-Jones
Interim Director of Human Resources

Date: _________________

Approved as to form:

________________________________
Donald A. Larkin
Interim City Attorney

Date: ________________

ATTACHMENT B
137

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING RECRUITMENT AND RETENTION INCENTIVES AND

SIDE LETTER AGREEMENTS FOR POLICE TELECOMMUNICATION
CLASSIFICATIONS IN THE STOCKTON CITY EMPLOYEES’ ASSOCIATION AND

STOCKTON MID-MANAGEMENT/SUPERVISORY UNITS

The City of Stockton (“City”), the Stockton City Employees’ Association (“SCEA”), and the Stockton Mid-Management / Supervisory Leve l (“B&C”) Unit have reached an agreement on side letters establishing temporary recruitment and retention incentives for designated Police Telecommunication classifications to enhance the City’s ability to recruit qualified candidates and retain experienced employees; and

The City is experiencing recruitment and retention challenges within its Police Telecommunications operations . M aintaining adequate staffing in Police Telecommunication classifications is critical to meeting the operational needs of the Police Department and ensuring the continued delivery of emergency communications services; and

The proposed side letter agreements establish temporary recruitment and retention incentive programs for eligible employees in the Police Telecommunications Supervisor, Police Telecommunicator I/II, and Police Telecommunicator Call Taker classifications; and

Under the proposed side letter agreements, new first -time hires in the specified Police Telecommunication classifications hired on or after July 1, 2026, will be eligible for a one-time recruitment incentive totaling Ten Thousand Dollars ($10,000), payable in two installments as follows:

1. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period following hire; and

2. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the employee’s first anniversary of employment; and

Employees in the specified Police Telecommunication classifications who are employed as of September 15, 2026, will be eligible to receive a three thousand dollar ($3,000) retention incentive payable by September 30, 2026; and

Employees in the specified Police Telecommunication classifications who are employed as of September 15, 2027, will be eligible to receive a three thousand dollar ($3,000) retention incentive payable by September 30, 2027; and

The proposed side letter agreements will remain in effect through June 30, 2029, 138

unless otherwise modified by mutual agreement of the parties . The City Council has reviewed and considered the proposed side letter agreements and finds that approval is in the best interests of the City and its residents; now, therefore,

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

1. The City Council hereby approves the B&C Police Telecommunications Recruitment and Retention Side Letter Agreement, substantially in the form attached hereto as Exhibit A and incorporated herein by reference.

2. The City Council hereby approves the SCEA Police Telecommunicator Recruitment and Retention Side Letter Agreement, substantially in the form attached hereto as Exhibit B and incorporated herein by reference.

3. The City Council hereby approves the temporary recruitment and retention incentives established by the side letter agreements for eligible employees in the designated Police Telecommunication classifications, subject to the terms and conditions of the respective side letter agreements and the availability of funds.

4. The City Manager is hereby authorized and directed to execute the side letter agreements through June 30, 2029.

5. The City Manager and the Interim Director of Human Resources 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 15, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE D. ROLAND, CMC, CPMC
City Clerk of the City of Stockton
139
Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2029, Between the City of Stockton and Mid-Management/ Supervisory Level (B&C) Unit This will confirm an understanding reached between the City of Stockton (hereinafter referred to as the “City”) and the Stockton Mid-Management/Supervisory Level (B&C) Unit A. Temporary Recruitment Incentives for Newly Hired Telecommunications Supervisors within the Police Department
In an effort to increase recruitment , the City and the Association have met and conferred and agree on the following:
1) All new first -time hires in the Police Telecommunications Supervisor classification are eligible for a ten thousand dollar ($10,000) signing bonus when hired on or after July 1, 2026. This provision shall sunset and become ineffective at 11:59 pm on June 30, 2029. This bonus is non-pensionable and subject to applicable state and federal taxes. The bonus will be distributed as follows:
a. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period upon hire.
b. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the first anniversary of the employee’s start date. c. Employees who separate prior to their first anniversa ry in the Police Telecommunications Supervisor classification will be required to reimburse the City $2,500 of the signing bonus which they received.
d. An employee who transfers into the Police Telecommunications Supervisor classification from the Fire Department , shall not be considered a new hire for purposes of this provision and shall not be eligible for the signing bonus.

EXHIBIT 1
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Side Letter Agreement – B&C Police Tele Supervisor Recruitment & Retention Incentives

Page 2 of 3 ends

FOR THE CITY: FOR THE ASSOCIATION:

______________________________________
Johnny Ford
City Manager

Date: _________________

______________________________________
Tony Silva
Labor Representative

Date: _________________

______________________________________
Gilbert Garcia
Administrative Services Director / Chief
Financial Officer

Date: _________________

______________________________________
Almarosa Vargas
B&C President

Date: _________________

_________________________________
Marie Guillory-Jones
Interim Director of Human Resources

Date: _________________

EXHIBIT 1
141
Side Letter Agreement – B&C Police Tele Supervisor Recruitment & Retention Incentives

Page 3 of 3 ends

Approved as to form:

________________________________
Donald A. Larkin
Interim City Attorney

Date: ________________

EXHIBIT 1
142
Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2029, Between the City of Stockton and the Stockton City Employees’ Association (SCEA) Unit
This will confirm an understanding reached between the City of Stockton (hereinafter referred to as the “City”) and the Stockton Mid-Management/Supervisory Level (B&C) Unit A. Temporary Recruitment Incentives for Newly Hired Telecommunicators within the Police Department
In an effort to increase recruitment , the City and the Association have met and conferred and agree on the following:
1) All new first -time hires in the Police T elecommunicator Call Taker, Police Telecommunicator I, and Police Telecommunicator II classifications are eligible for a ten thousand dollar ($10,000) signing bonus when hired on or after July 1, 2026. This provision shall sunset and become ineffective at 11:59 pm on June 30, 2029. This bonus is non -pensionable and subject to applicable state and federal taxes. The bonus will be distributed as follows:
a. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period upon hire.
b. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the first anniversary of the employee’s start date. c. Employees who separate prior to their first anniversa ry in a Police Telecommunicator classification will be required to reimburse the City $2,500 of the signing bonus which they received.
d. An employee who transfers into a Police Telecommunicator classification from the Fire Department , shall not be considered a new hire for purposes of this provision and shall not be eligible for the signing bonus.

Page 2 of 3 ends

FOR THE CITY: FOR THE ASSOCIATION:

______________________________________
Johnny Ford
City Manager

Date: _________________

______________________________________
Mehran Tahoori
SCEA Attorney

Date: _________________

______________________________________
Gilbert Garcia
Administrative Services Director / Chief
Financial Officer

Date: _________________

EXHIBIT 2
144
Side Letter Agreement – SCEA Police Tele Supervisor Recruitment & Retention Incentives

Page 3 of 3 ends

_________________________________
Marie Guillory-Jones
Interim Director of Human Resources

Date: _________________

Approved as to form:

________________________________
Donald A. Larkin
Interim City Attorney

Date: ________________

EXHIBIT 2
145
City of Stockton
Legislation Text
File #: 26-0959, Version: 1

APPROVAL OF A TEMPORARY PROMOTIONAL INCENTIVE AND SIDE LETTER AGREEMENT FOR FIREFIGHTER ENGINEERS IN THE STOCKTON FIREFIGHTERS’ LOCAL 456 UNIT

RECOMMENDATION
To encourage current employees in the Fire Department to promote into the Firefighter Engineer classification, it is recommended that the City Council adopt by resolution the attached side letter agreement between the City of Stockton and the Stockton Firefighters’Local 456 unit, effective July 1, 2026. The side letter establishes a temporary promotional incentive of fifteen thousand dollars ($15,000) for eligible employees promoted to a Firefighter Engineer classification.

Summary
The City of Stockton and the Firefighters’Local 456 reached an agreement on a temporary incentive intended to support the promotion of Fire Department employees to a Firefighter Engineer classification. The proposed side letter agreement provides a temporary fifteen-thousand-dollar ($15,000) incentive for eligible employees who are promoted into the Firefighter Engineer classification.

The incentive is non-pensionable, subject to applicable state and federal taxes, and will be paid in two installments. The agreement will remain in effect beginning July 1, 2026, through June 30, 2028, and is contingent upon available funds.

DISCUSSION
Background
The Fire Department relies on qualified and experienced personnel to fill Firefighter Engineer positions and maintain appropriate staffing levels for emergency response operations. Firefighter Engineers perform an important role within the department, including operating and maintaining fire apparatus and equipment and supporting emergency response activities.

City of Stockton Printed on 9/11/2026Page 1 of 2
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File #: 26-0959, Version: 1
In an effort to encourage qualified employees to promote to Firefighter Engineer and support the retention of experienced personnel within the Fire Department, the City and the Firefighters’Local 456 reached an agreement on the terms contained in the proposed Side Letter Agreement.

Present Situation
The proposed Side Letter Agreement between the City of Stockton and Stockton Firefighters’Local 456 unit establishes a temporary promotional incentive intended to encourage qualified employees to promote to the Firefighter Engineer classification and support the retention of experienced personnel within the Fire Department.

Under the proposed agreement, effective July 1, 2026, eligible employees promoted to an allocated and funded Firefighter Engineer position may receive a one-time promotional incentive totaling fifteen thousand dollars ($15,000), contingent upon available funding. The incentive is non-pensionable, subject to applicable state and federal taxes, and will be paid in two installments:

1. Seven thousand five hundred dollars ($7,500) payable during the first full pay period following the employee’s promotional appointment; and

2. Seven thousand five hundred dollars ($7,500) payable during the first full pay period following the first anniversary of the employee’s promotion.

Approval of the proposed side letter agreement will provide the City with an additional retention tool to support Firefighter Engineer staffing and encourage qualified employees to pursue promotional opportunities within the Fire Department.

FINANCIAL SUMMARY
The department currently has four vacant Fire Engineer positions in the Suppression area. To incentivize the filling of these positions, the department would need approximately $60,000, on a one- time basis, to implement the provisions of this side-letter agreement. The department can fund this request through salary savings by reallocating funding to General Fund line 4020-000-610010-100- 000-20-40-000-000-.

Attachment A - Firefighter Engineer Recruitment and Retention Side Letter Agreement City of Stockton Printed on 9/11/2026Page 2 of 2
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Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2028, Between the City of Stockton and Stockton Firefighters’ Local 456.

This will confirm an understanding reached between the City of Stockton (hereinafter referred to as the “City”) and the Stockton Firefighters’ Local 456 (hereinafter referred to as the “Association”).

Temporary Promotional Incentive for Firefighter Engineers In an effort to encourage current employees to promote into the Firefighter Engineer classification, the City and the Association agree on the following:
1) Effective July 1, 2026, employees covered by this Memorandum of Understanding are eligible to receive a one-time fifteen thousand dollar ($15,000) promotional bonus for employees promoted to an allocated and funded Firefighter Engineer position, contingent upon available funds. This bonus is non -pensionable and subject to applicable state and federal taxes. This provision shall sunset and become ineffective at 11:59 pm on June 30, 2028. Eligible employees may receive a one-time fifteen thousand dollar ($15,000) incentive pursuant to the following terms:
a. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following promotional appointment;
b. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the first anniversary of the employee's promotion; 2) Firefighter Engineers promoted on or after July 1, 2026, but prior to City Council approval, shall receive a seven thousand five hundred dollar ($7,500) payment, payable during the first full pay period following City Council adoption. 3) The parties understand that t he City has authorized allocation to fund the above - described temporary incentive through June 30, 2028. Continuation of this temporary incentive shall be subject to available allocation through the City’s budget process. 4) This side letter agreement shall be effective upon the date this agreement is fully executed by the parties and shall sunset and become ineffective at 11:59 pm on June 30, 2028. This side letter shall not be included in any successor agreement between the parties unless both parties agree to extend this side letter. The provisions of this side letter are not subject to the grievance process.

Attachment A
148
Side Letter Agreement – Firefighter Engineers

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FOR THE CITY: FOR THE ASSOCIATION:
______________________________________
Johnny Ford
City Manager
Date: _________________
______________________________________
Timothy Talbot
Labor Representative
Date: _________________
______________________________________
Gilbert Garcia
Administrative Services Director / Chief
Financial Officer
Date: _________________
______________________________________
Devin Robson
Local 456 President
Date: _________________
_________________________________
Marie Guillory-Jones
Interim Director of Human Resources
Date: _________________
Approved as to form:
________________________________
Donald A. Larkin
Interim City Attorney
Date: ________________
Attachment A
149

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING A TEMPORARY PROMOTIONAL INCENTIVE AND

SIDE LETTER AGREEMENT FOR FIREFIGHTER ENGINEERS IN THE STOCKTON FIREFIGHTERS’ LOCAL 456 UNIT

The City of Stockton (“City”) and the Stockton Firefighters’ Local 456 (“Local 456”) have reached an agreement on a side letter establishing a temporary promotional incentive for eligible employees who promote to the Firefighter Engineer classifi cation; and

The Fire Department relies upon qualified and experienced personnel to fill Firefighter Engineer positions and maintain appropriate staffing levels for emergency response operations . Firefighter Engineers perform an important role within the Fire Department, including operating and maintaining fire apparatus and equipment and supporting emergency response activities; and

The City and Local 456 have determined that a temporary promotional incentive will encourage qualified employees to promote to Firefighter Engineer and support the retention of experienced personnel within the Fire Department . The proposed side letter agreement, effective July 1, 2026, through June 30, 2028, provides an eligible employee promoted to an allocated and funded Firefighter Engineer position, effective July 1, 2026, with a one -time promotional incentive totaling fifteen thousand dollars ($15,000), contingent upon available funding . The promotional incentive shall be non -pensionable, subject to applicable state and federal taxes, and paid in two installments; and

The City Council has reviewed and considered the proposed side letter agreement and finds that approval is in the best interests of the City and its residents; now, therefore,

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

1. The City Council hereby approves the Firefighter Engineer promotional incentive side letter between the City of Stockton and the Stockton Firefighters’ Local 456, substantially in the form attached hereto as Ex hibit 1 and made part hereof by this reference, is hereby approved, and adopted.

2. The City Council hereby approves the temporary promotional incentive established by the side letter agreement in the amount of fifteen thousand dollars ($15,000) for eligible employees promoted to an allocated and funded Firefighter Engineer position, subject to the terms and conditions of the side letter agreement and the availability of funds.

150

3. The City Manager is hereby authorized and directed t o execute the side letter to be effective July 1, 2026.

4. The City Manager and the Interim Director of Human Resources 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 15, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE D. ROLAND, CMC, CPMC
City Clerk of the City of Stockton
151
Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2028, Between the City of Stockton and Stockton Firefighters’ Local 456.

EXHIBIT 1
152
Side Letter Agreement – Firefighter Engineers

Page 2 of 3 ends

APPROVAL OF MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF STOCKTON

AND THE OPERATIONS AND MAINTENANCE UNIT

RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached successor Memorandum of Understanding (MOU) with the Operations and Maintenance Unit effective July 1, 2026, through June 30, 2029.

Summary
In March 2026, City representatives began negotiations with the Operations and Maintenance Unit for a successor MOU, as the contract was set to expire on June 30, 2026. Following a series of bargaining sessions, the City and the Operations and Maintenance Unit successfully reached an agreement on the terms of a successor MOU. The proposed successor MOU includes a three-year term and provides for cost-of-living and market salary adjustments, the addition of salary steps to the bargaining unit salary schedule, increased City contributions toward health insurance premiums, and cleanup language.

The successor MOU for the Operations and Maintenance Unit is intended to ensure that the City maintains a competitive compensation structure that supports the recruitment and retention of qualified employees while promoting internal equity and fiscal responsibility.

DISCUSSION
Background
The Operations and Maintenance Unit represents employees assigned to the City’s Municipal Utilities Department. In 2023, the City entered into a three (3) year contract term with the unit. Under this agreement, bargaining unit members received an eight percent (8%) cost of living adjustment (COLA) effective May 1, 2024, a three percent (3%) COLA effective July 1, 2025, two (2) lump sum payments of two thousand dollars ($2,000) paid out in July 2024 and July 2025, a one-time payment in the amount of five thousand dollars ($5,000) effective May 1, 2024, and a two percent (2%) increase to the City’s health contribution for each year of the contract.

In March 2026, City representatives began negotiations with the Operations and Maintenance Unit for a successor MOU. On August 24, 2026, the City reached a tentative agreement on a successor City of Stockton Printed on 9/11/2026Page 1 of 4
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File #: 26-0976, Version: 1
MOU with the Operations and Maintenance Unit. On August 31, 2026, the City was notified that the unit’s members had ratified the tentative agreement.

Present Situation
The relevant amendments under the successor MOU for the Operations and Maintenance Unit are summarized as follows:

1. MOU contract term for three (3) years, effective July 1, 2026, through June 30, 2029 (MOU Section 18).

2. COLAs to base pay consisting of a two percent (2%) COLA effective September 20, 2026, or the pay period following City Council approval, whichever is later, a two percent (2%) COLA effective June 27, 2027, and a two percent (2%) COLA effective June 25, 2028 (MOU Section 14).

3. Effective September 20, 2026, or the pay period following City Council approval, whichever is later, Market Adjustments in alignment with the results of a mutually agreed-upon salary study. (MOU Appendix A).

4. Salary Step Plan. Effective September 20, 2026, or the pay period following City Council approval, whichever is later, adds additional steps to the salary schedule. There will be two and a half percent (2.5%) between the added steps (MOU Section 14 and Appendix A).

5. City Health Contribution. Four percent (4%) increase to the City’s health insurance premium contribution effective January 1, 2027, two percent (2%) increase effective January 1, 2028, and two percent (2%) increase effective January 1, 2029 (MOU Section 13).

6. Safety Protective Footwear. Offers a fifty-dollar ($50) increase for eligible employees, increasing payment from two hundred fifty dollars ($250.00) to three hundred dollars ($300.00) per fiscal year. Also allows employees to use any unused funds towards the purchase of an additional pair of safety protective footwear (MOU Section 12.4).

7. Vacation Sellback. Allows a vacation cash payment option/sell-back of up to forty (40) hours of vacation each calendar year (MOU Section 8).

8. Vacation Accrual. Converts vacation accrual amounts from annual to per pay period amounts.

This change reflects how vacation accruals are earned (MOU Section 8).

9. Holidays. Converts the Cesar Chavez and Birthday holidays into two (2) floating holidays that can be used throughout the calendar year. Upon separation, any accrued and unused floating holiday hours will be cashed out at the employee’s current straight rate of pay. Additionally, it changes “Columbus Day” to “Indigenous Peoples Day” (MOU Section 11).

10.Overtime Eligibility. Adds that vacation is counted as time worked for overtime purposes.

Clarifies that overtime is paid at the employee’s regular rate of pay and eliminates language referring to the pay structure of employees who are not regularly scheduled to work holidays (MOU Section 10).

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11.Compensatory Time Off. Clarifies that Compensatory Time Off will be paid out at the employee’s regular rate of pay and allows employees to defer the automatic payout of Compensatory Time Off (MOU Section 10.5).

12.Rates of Pay. Provides clarification of the definition of pay rates to include base rate, straight time rate, and regular rate (MOU Appendix D).

13.Bereavement Leave. Clarifies bereavement leave provisions to ensure compliance with applicable law and replaces court appearance provisions with jury duty pay language (MOU Section 8.3).

14.Union Rights. Establishes a defined timeline of fourteen (14) business days for the Union to respond to notices of meet and confer (MOU Section 2).

15.Fatigued Employees Rest Period. Offers paid time off for rest periods after an overtime shift for eligible employees (MOU Section 10.7).

Applicable provisions remain fully enforceable and applicable to employees regardless of whether they are specifically referenced in the MOU.

The proposed compensation plan has been reviewed by the Administrative Services Department to ensure consistency with the City's compensation strategy and available budget appropriations.

FINANCIAL SUMMARY
COLA and Market Adjustments
First-year cost includes a 2% increase to base pay and an average 5.29% market rate adjustment, totaling approximately $1,198,777 in FY27. With a 2% increase in FY28 of $411,091 and a 2% increase in FY29 of $419,312, the total 3-year cost is $2,029,180.

Additional Salary Steps
The first-year impact of the additional salary step is approximately $101,971. In the second year, the FY28 impact is $223,078, and in FY29, the impact is $405,170. The total three-year cost is approximately $730,220.

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City Health Contribution
The city will contribute an additional 4% in FY27, 2% in FY28, and 2% in FY29 towards the cost of employee health care. This will result in costs of $123,996 in FY27, $126,476 in FY28, and $129,005 in FY29 for a total cost of $379,477 over the term of the agreement.

Safety Protective Footwear
The City will increase the reimbursement to eligible unit members from $250 to $300 per year for safety protective footwear. The fiscal impact is approximately $8,200 per year, for a total three-year cost of $24,600.

Total Cost of the Agreement
The fiscal impact of this agreement is approximately $1,432,944 in FY27, $768,845 in FY28, and $961,688 in FY29, for a total three-year cost of $3,163,477.

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CITY OF STOCKTON

MEMORANDUM OF UNDERSTANDING

OPERATIONS AND MAINTENANCE 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 Section 1, have exchanged freely information, opi nions 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 Meyer s- 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, 20232026 and ending June 30, 20262029.

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Section 3. Probation ................................ ................................ ................................ .................. 4 Section 4. Layoff ................................ ................................ ................................ ....................... 5 Section 5. Reemployment ................................ ................................ ................................ ......... 7 Section 6. Discipline ................................ ................................ ................................ .................. 8 Section 7. Grievance Procedures ................................ ................................ .............................. 9 Section 8. Leaves ................................ ................................ ................................ ....................12 Section 9. Days and Hours of Work ................................ ................................ .........................19 Section 10. Overtime ................................ ................................ ................................ ............ 2120 Section 11. Holidays ................................ ................................ ................................ ............ 2524 Section 12. Compensation and Allowance Other Than Base Salary ................................ ........26 Section 13. Insurance Plans and Retirement Benefits ................................ .............................. 31 Section 14. Salaries ................................ ................................ ................................ ............. 3534 Section 15. Severability of Provisions ................................ ................................ .................. 3938 Section 16. Past Practices and Existing Memoranda of Understanding ................................ ...39 Section 17. Scope of Agreement ................................ ................................ .............................. 39 Section 18. Duration of Agreement ................................ ................................ ...................... 4039 Section 19. Maintenance of Operations/City Rights ................................ ............................. 4039 Section 20. GPS Policy, Rest Periods, New Standby List ................................ ....................... 40 Appendix A. Salary Schedule Effective September 20, 2026 ................................ ...................42 Appendix B. Side-Letter of Agreement Exhibit A & B Employees ................................ .............44 Appendix C. Side-Letter of Agreement Longevity Incentive ................................ ......................51 Appendix D. Rates of Pay ................................ ................................ ................................ ........54

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Section 1. Recognition
Operating Engineers' Local 3, AFL -CIO, hereinafter referred to as the "Union," is the recognized employee organization for the Operations and Maintenance (O&M) Unit, certified pursuant to the Employer-Employee Relations Ordinance (Stockton Municipal Code §§ 2-200, et seq.).

Section 2. Union Rights

2.1 Union Membership Dues and Payroll Deductions

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

(ba) As certified in writing by the Union to the City in a manner consistent with the requirement of (SB) 866 theThe 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.

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

8. Changes and/or cancellations received by the City prior to the 15 th of the

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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.

(cb) 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 Orientation and Information Requirements

(a) In accordance with Assembly Bill (AB) 119, the 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 thirty (30) days for all bargaining unit members.

2.3 Use of City Facilities

(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 interfe re 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

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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 other inter nal 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 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 opportunity to negotiate if requested with the designated management representatives prior to adoption. The Union shall have fourteen (14) business days to request a meet and confer. If the Union fails to request a meet and confer within this time period, it shall be deemed to have waived its right to meet and confer.

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 employeesEmployees who are official representatives or unit representatives of the Union shall be given reasonable time off with pay to attend meetings with City management representatives where matters within the scope of representation or grievances are being considered. Such employee representatives shall submit a request for an 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 five (5) per recognized

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bargaining unit. For MOU negotiation meetings, the number of employees excused for such purposes shall not exceed six (6) per recognized bargaining unit.

O&M Time Bank. Upon request by O&M once per calendar year, each employee covered by this MOU must contribute up to one (1) hour of vacation time to maintain a bank of time to be used by O&M officers, directors, and members for O&M business that occurs during normal work hours, for which paid release time does not apply. Time bank hours used will not be considered as hours worked.

The u se of O&M Time Bank must be authorized by an O&M Officer, or O&M director. Members must submit the time -off request in advance and receive supervisor approval to attend O&M business that occurs during normal work hours.

The total amount of release time in the bank, including any carryover, will at no time exceed five hundred (500) hours. The City’s administration and processing of these contributions will be implemented as soon as administratively possible after ratification of this MOU. This time bank may be used by representatives who attend new hire orientations at the City. The City will provide the Union current time bank balance in February and August of each calendar year.

2.6 Maintenance of Membership

All employees in the O&M 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.

2.82.7 Contract Ratification

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

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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, legitimate union activity, or on any other basis prohibited by applicable Federal and State law against any employee or applicant for employment.

3.2 Fair Labor Standards Act. The Union agrees to cooperate with the City to ensure 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 43. Probation

43.1 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.

43.2 Original Entrance and Promotional Positions

All original appointments shall be tentative and subject to a probationary period of one (1) year with a review completed after six ( 6) months from 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.

43.3 Retention/Rejection of Probationer

At the end of the probationary period, if the service of the probationary employee has been 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 no t 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

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probationer as defined in Civil Service Rules.

During the probationary period an employee may be rejected at any tim e by the appointing authority. Any employee rejected during the probat ionary 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 section 67 of this MOU and in the Civil Service Ordinance and Civil Service Rules, which are consistent therewith.

43.4 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. This shall include non-represented part-time, seasonal, provisional, and temporary appointments.

Section 54. Layoff

54.1 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.

54.2 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

54.3 Notice of Layoff

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

54.4 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 the City, 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, 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 O&M Unit who is laid off may complete a City employment application for any position currently staffed 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

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qualifications of that position, they shall have the option of displacing the part time, provisional, or temporary employee.

54.5 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 (total service) seniority. 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 (total service) seniority.

54.6 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 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 65. Reemployment
(a) The name of each employee who is laid off in accordance with section 45 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 the 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

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employee, the probationary period must be completed as required in this MOU.

Section 76. Discipline
Disciplinary action, including discharge, suspension, reduction in pay or demotion, may be taken against any employee for cause.

76.1 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) Seven (7) 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 mate rials, reports and documents upon which the action is based.

76.2 Administrative Leave

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

76.3 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 law are followed. Such provisions allow the employee suspended, demoted or dis- charged 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.)

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(c) File a grievance as provided for in section 78 within ten (10) calendar days of written notification of the action.

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

All verbal reprimands and written reprimands shall be removed from the employee’s record after a period of one (1) year if there has been no reoccurrence of the infraction and the employee has a good work record. All other disciplinary records shall be removed from an employee’s work record after two (2) years if there has been no reoccurrence of the infraction and th e employee has a good work record.

Section 87. Grievance Procedures

87.1 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. Day – shall mean day(s) in which the City’s Human Resources Office is open for business.

87.2 Filing Deadline

(a) No grievance involving demotion, suspension, discharge or other employment penalty will be entertained unless it is filed in writing with the Director of Human Resources within ten (10) working days of the time at which the affected employee received written notification of such action. All other grievances must be filed within thirty (30) working 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 City Manager 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.

87.3 Grievance Processing

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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. An email will suffice as a formal submission of a Step one (1) Grievance. The Union agrees to state in the subject line of the email “Grievance.”

(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) working 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 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) working days 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) calen dar 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 arbitrators on matters properly before them shall be final and binding on the parties hereto except as provided other wise herein.

87.4 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 paragraph 8.1.

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such proposal, may be referred to arbitration under this Section. 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.

87.5 Other Provisions

If the Director of Human Resources or City Manager, in pursuance of the procedures outlined above, resolve a grievance which involve s 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 complai ned of, the arbitrator may not substitute his 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 MOU shall be considered as grievances and processed pursuant to section 78.3. 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 confer ring 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.

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 section 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 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.

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action under paragraph (c) of Subsection 78.3 above shall be taken unless it is determined that the employee is not utilizing such option.

No action under paragraph (c) of Subsection 78.3 above shall be taken if action on the complaint or grievance has been taken by the Civil S ervice 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 recom mend to the City Council or the Civil Service Commission, as appropriate, that it follow such award.

Section 98. Leaves

98.1 Vacation Leaves

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

(a) (a) FLSA Non-Exempt EmployeesVacation - 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.

(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.

Months of Continuous Service Hours Per Pay Period
Less than eighteen (18) 3.08
Eighteen (18) or more but less
than ninety (90)

4.15 Ninety (90) or more but less than 5.54

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180
180 or more but less than 300 7.27
More than 300 Additional 0.27 hours for each
additional year of completed
service in excess of 25 years

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

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

Under 1.5 years 120 hours

1.5 - 7.5 years 240 hours

7.5 - 15 years 280 hours
15 – 25 years 320 hours
26 years 328 hours
27 years 336 hours
28 years 344 hours
29 years plus 7 hours each additional year

(b) (c) FLSA Exempt EmployeesVacation - FLSA 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……………………………………………….120
hours/year.

(2) After one and one-half (1-1/2) up to seven and one-half (7-1/2) years continuous employment………………………...148
hours/year.

(3) After seven and one-half (7-1/2) up to fifteen (15) years continuous employment……………………………188 hours/year.

(4) After fifteen ( 15) up to twenty-five (25) years continuous employment…………………………………………..229 hours/year.

(5) Thereafter, s even (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.

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Months of Continuous Service Hours Per Pay Period
Less than eighteen (18) 4.62
Eighteen (18) or more but less
than ninety (90)

5.69 Ninety (90) or more but less than
180

7.23 180 or more but less than 300 8.81
More than 300 Additional 0.27 hours for each
additional year of completed
service in excess of 25 years

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

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) Vacation Scheduling . Vacation leaves shall be scheduled with due consideration for the wishes of the employee and so as to not interfere with the normal operation of the City’s business. Vacation requests are accepted on a day for day basis.

(f) Holiday during Vacation. If any such paid holidays fall within an employee's vacation leave, the employee will not be charged vacation accrual for that day.

(g) Vacation Sellback.

During the month of December, employees may make an irrevocable election to cash out up to forty (40) hours of vacation leave for the succeeding calendar year.

Employees that cash out a portion of their vacation accrual will be paid on the first check in D ecember of the following calendar year. Payments are subject to all applicable payroll taxes and withholding.

(hg) Vacation Cash Out Upon Separation

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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 finalstraight time 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.

98.2 Sick Leave

(a) Accrual. All regular status full-time employees, except provisional , andtemporary 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 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:

Preventive 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 . 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 that otherwise would not be covered by the Family Medical Leave Act ( FMLA) or the California Family Rights Act (CFRA) leaves.

Such 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 and grandchild, legal depende nt, 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 (1) person as a “designated person” in a twelve (12) month period.

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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 FMLA, 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 shall request authorization for such sick leave from the dep artment head prior to such absence.

If an employee is not able to report due to illness or injury, the employee shall report as soon as possible to the appropriate supervisor, but in no case more than thirty (30) minutes after the start of the work day, except for extenuating circumstances prohibiting giving notice. Each Supervisor will have the authority to identify acceptable forms of sick leave notification and will provide acceptable forms of sick leave notification in writing to employees; however, at all times the employee must contact their direct supervisor directly when not able to report to work. If the employee’s direct supervisor is unavailable, the employee must contact the next-level supervisor.

Failure to notify as soon as possible and in conforming to the thirty (30) minute notification shall be cause for the following disciplinary action:

(1) For the first time within a six (6) month period, a Memorandum of Discussion.

(2) For the second time within a six (6) month period, a Letter of Reprimand.

(3) For any subsequent time within a six (6) month period, suspension from work; or at any time four (4) or more
incidents occur within a six (6) month period, the employee may be discharged.

The six (6) month period will be defined as six (6) months from the most recent incident. If no other incident occurs within six (6) months of the most recent incident, the disciplinary data will be removed from the employee’s active file.

(e) Verification Procedures

(1) Before being paid for the use of accrued sick leave, the employee shall submit a request for sick leave form, stating the dates and hours of

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absence, and the type of sick leave being requested such as sick leave for self, family member and/or FMLA.

(2) Doctor's Certificate or Other Proof . The Director of Human Resources may require a doctor’s certificate or other reasonable proof of illness as they deem 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 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.

(3) If the City has a reasonable basis to believe that an employee is abusing the sick leave benefit, the City or the employee's supervisor must first meet with the employee to: 1) explain the reasonable basis for the believed abuse, and 2) discuss the reasons for the employee's absence.

The employee has the right to Union representation at such meeting. After such meeting, and depending on the factual circumstances, the City may:

(a) Place the employee on restricted sick leave for a period of not more than four (4) months, under the direction of the Director of Human Resources pursuant to section (e)(2) above;

(b) Suspend the employee without pay for up to five (5) days for abuse of sick leave; or dismissal from employment if a prior suspension involved abuse of sick leave;

(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

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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 unused sick leave except as provided below.

(h) CalPERS Service Credit for Unused Sick Leave. Employees 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.

98.3 Other Leaves with Pay

(a) Bereavement Leave. In the event of a death in theof an immediate family of an employee member, the employee shall, upon request ,will be granted up to threefive (35) days bereavement leave with pay without charge to their accumulated sick leave or annual leave. The City provides paid bereavement leave for the first three (3) days. The employee shall, upon request, be grantedmay use any other paid leave for the remaining an additional two (2) days of bereavement leave. which shall be charged against the employee's accumulated sick leave or annual leave. For the purposes of this paragraph, the immediateImmediate family shall beis restricted to the employee’s parents, spouse, mother-in-law, father-in- lawparent-in-law, child, stepchild, brother, sister sibling, brother -in-law, sister -in-

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law, grandparent, grandchild, and registered domestic partner.

In the event of the death of a person not immediately related to an employee as defined above that is not an immediate family member, the employee's department head may grant up to three (3) days of unpaid bereavement leave., upon request, which shall be charged against tThe employee's must use accumulated sick leave or annual leave . If the deceased is the person who is the employee’s current “designated person” for purposes of family sick leave pursuant to Section 89.2(c), the request to use sick leave or annual leave shall not be unreasonably denied.

(b) Jury Duty Leave

When an employee is summoned to jury duty, they will promptly inform their supervisor and, if required to serve, may be absent from work without loss of wages or use of accrued leave while rendering such service (including travel time). Upon being excused from the court each day, the employee must return to work if they have more than four (4) hours remaining before the end of their workday.

(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 authori ty, in accordance with the following provisions:

Said 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

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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 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 the City shall be allowed a 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 City Manager 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.

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.

98.4 Workers' Compensation Leave

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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 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.

98.5 Leave of Absence Without Pay

(a) Entitlement. Employees shall not be entitled to a leave of absence without pay as a matter of right, but only upon the determination of the City that the granting of such leave is in the best interest of public service and that there is a presumption the employee intends to return to work upon the expiration of the leave of absence.

Leaves of absence are subject to eligibility in accordance with state and federal guidelines. The granting of a leave of absence provides the employee the right to return to the position vacated.

(b) Approval. All leaves of absence without pay must be recommended by the department head and approved by the Director of Human Resources. 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) All 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 entitlement of sick, vacation, and other accrued leave hours.

98.6 Absence Without Official Leave (AWOL)

(a) Refusal of Leave 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.

(b) Voluntary Resignation. Any employee in this bargaining unit absent without official leave for two (2) or more consecutive scheduled days without a satisfactory

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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.

Section 109. Days and Hours of Work
109.1 Workweek

The normal work week for employees is defined as either the traditional work week consisting of eight (8) hours per day , five (5) days per week ; the alternate 9/80 work schedule consisting of 9 hour work days Monday through Thursday, 8 hour workday on Friday with every other Friday off; or the twelve (12) hour workday shift schedule. Employees assigned to the eight ( 8) hour and twelve ( 12) hour schedules have a defined work week that starts at 12:00 a.m. Sunday through 11:59 p.m. Saturday; the 9/80 schedule work week starts mid-shift Friday through the following mid -shift Friday. Where operational requirements of a department require deviations from these schedules, the department head with City Manager approval may institute alternate work schedules as long as the City meets with the Union over the impact of such schedules and conforms to work period requirements of the FLSA. Twelve (12) hour workday employees are not set up in the City’s payroll system as “salaried” and therefore are paid for actual hours worked each pay period (i.e. no salary adjustment); however when the City implements its new payroll system, all employees may be paid for actual hours worked each pay period only (i.e. no more salary adjustment).

109.2 Meal Periods and Rest Periods

(a) Employees shall receive a one (1) hour or one half-hour (1/2) 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. Employees who exceed the time limits prescri bed above for lunch and/or rest periods shall have their pay reduced accordingly.

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

109.3 Reporting to Work

Repeated failure to report to work on time may result in appropriate discipline as set forth below:

(a) For the first time in a six (6) month period, a Memorandum of Discussion.

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(b) For the second time within a six (6) month period, a Letter of Reprimand.

(c) For any subsequent time within a six (6) month period, suspension from work; or at any time four (4) or more incidents occur within a six (6) month period, the employee may be discharged.

If an employee reports to the work site after the designated starting time, the employee will be paid only for time actually worked; however, the employee may be allowed to utilize annual leave for lost pay, provided the employee's supervisor approves.

Any Memorandum of Discussion or Letter of Reprimand regarding tardiness which is more than six (6) months old will be removed from the personnel file upon request.

Section 1110. Overtime
1110.1 Overtime Authorization

All compensable overtime m ust be authorized by the depart ment 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.

1110.2 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 seven (7) day FLSA workweek. Such overtime shall be paid for at timeone and one-half (1 -1/2) times the employee’s regular rate of pay.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, vacation, and sick leave hours taken shall beare considered as time worked for overtime calculation purposes. Vacation, 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.

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(bc) The City may require mandatory overtime when operational needs exist and if the City dictate s 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 1110.5(b).

(d) Notwithstanding subparagraph “(a)” above, effective September 1, 2024 and continuing for a period of twelve (12) months, vacation leave taken within the work period shall also count as actual time worked. The parties agree that the cost value of this modification is approximately zero point three percent (0.3%) of salary for the bargaining unit and is funded by the delay in the 2023 COLA. This pilot program will sunset at the end of twelve (12) months. However, during the pilot program, the parties agree to evaluate the economic and operational impacts of this change and will negotiate over modifications to or continuation of this structure as part of successor contract negotiations.

(ce) Temporary Upgrade Pay. Employees 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.

1110.3 Standby DutyPay

When warranted and in the interest of City operation, department heads or their 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. Employees on Standby shall ensure that they are available and able to return to work to perform their assigned duties.

(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) hour blocks., i.e., Monday - Friday work week standby can be eight (8), sixteen (16), twenty-four (24) hour blocks. The block of standby will be to one (1) person per a twenty-four (24) hour period.

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Standby for weekends i.e., Saturday, Sunday or extended holiday weekends (Friday – Sunday, or Saturday – Monday) will be assigned 8 - 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) Effective May 1, 2024, eEmployees assigned to standby duty shall be paid four dollars ($4.00) per hour while assigned to be on standby. An employee shall earn time and one -half (1 -1/2) for all actual time worke d 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”worked for purposes of calculating overtime.

1110.4 Call Back

Employees who are called back to physically return to work from off duty status, shall be compensated for a minimum of two (2) hours and forty -five (45) minutes of 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, employees who are contacted and who provide remote support via telephone, Internet, or network connection will be paid time 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, both 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.

1110.5 Compensatory Time (CTO)

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

(b) Accrual. For hours worked in excess of forty (40) hours in a seven (7) day work per iod as defined in section 1011.2(a), CTOCompensatory Time may be earned at the rate of time and one -half (1-1/2). No more than one hundred (100) hours (forty [40] hours worked at time and one-half [1-1/2]) may be carried on the books at any time.

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

(d) Payment. Once one hundred (100) hours of CTOCompensatory 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 employee’s regular rate of pay.

At the end of each calendar year, all CTO will be carri ed forward (40 hours maximum), unless the employee elects to have the compensatory balance paid.

Carryover CTO cannot exceed the forty (40) hours maximum.

Any CTO 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) preapproved scheduled day off in December. If the employee is unable to take days off as planned in December, the payout will occur in January. to the employee.

1110.6 Meal Allowance

The City shall provide a meal allowance of 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 called back from a day off with less than two (2) hours’ notice shall qualify for the fifteen dollars and 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.

10.7 Fatigued Employees Rest Period

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(a) The following provision ensures that an employee is not required to work such a significant number of hours that it might lead to extreme fatigue of that employee or place that employee in violation of any state or federal law governing employees possessing a Commercial Driver’s License. Further, the City seeks to provide and maintain a safe working environment. (b) Eligibility. An employee who is required to work four (4) hours or more overtime within a sixteen (16) -hour time period and whose regularly scheduled work shift begins fewer than six (6) hours from the time the overtime work ends, will be afforded a full eight (8) -hour rest period before returning to work.

This provision applies only to employees assigned to a 9/80 work schedule and does not apply to employees on Standby assignment. However, it shall apply to employees that are called back from standby.
(c) Rest Period. If the eight (8)-hour rest period extends into the next regularly scheduled work shift, the employee will be absent from the workplace for a period of time totaling eight (8) hours. Any portion of the eight (8)-hour rest period that extends into the regularly scheduled work shift will be considered hours worked for the purposes of overtime.
(d) Examples.
(1) Continuous. The employee’s regular shift ends at 11:00 p.m. and they are required to work five (5) hours of overtime and get off at 4:00 a.m. The employee's next scheduled shift begins at 6:00 a.m. The employee is entitled to eight (8) hours of rest beginning at 4:00 a.m.

Since the eight (8) hours extends into the regular shift, the employee is entitled to six (6) hours of paid fatigue time from 6:00 a.m. to 12:00 p.m.
(2) Intermittent. The employees’ regular shift ends at 3:30 p.m. and they are required to intermittently work five hours of overtime from 7:00 p.m. to 10:00 p.m. then again from 2:00 a.m. to 4:00 a.m. The employee is entitled to eight (8) hours of rest beginning at 4:00 a.m.

Since the eight (8) hours extends into the regular 6:00 a.m. shift start time, the employee is entitled to six (6) hours of paid fatigue time from 6:00 a.m. to 12:00 p.m.
(e) Additional Rest Period. If, following the eight (8) -hour rest period, the employee is still too fatigued to return to work, the employee may request additional time off to be charged to the employee’s vacation accruals, CTO balance, or sick leave if applicable. This additional time off will be considered and recorded as an approved absence under the City’s attendance policy.

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(f) In the case of an emergency, a Department Director or designee may authorize an employee to work longer without a rest period.

Section 1211. Holidays
1211.1 Qualifying for Holiday Pay

All regular status employees, excluding provisional, temporary, and part -time employees, shall be entitled to 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 9/80 schedule, or 12 hours of holiday pay for 12-hour shift).

1211.2 Holidays Observed by the City

Effective 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, tThe 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 (65) Last Monday in May ................................................................. Memorial Day (76) July 4 ................................................................................ Independence Day (87) First Monday in September ............................................................ Labor Day (98) Second Monday in October (FLOATING)Columbus Day Indigenous Peoples Day
(109) November 11 ......................................................................... Veteran's Day (1110) Fourth Thursday in November ................................................ Thanksgiving (1211) The day following the day known as Thanksgiving
(1312) December 25 ........................................................................ Christmas Day (14) Birthday Holiday

For positions that observe holidays, employees accrue floatin g holiday hours equivalent of two (2) workdays annually on the first full pay period to a maximum of two (2) workdays.

Floating holidays must be utilized in full day increments. Upon separation, unused floating holiday hours will be paid out at the employee’s current straight time rate of pay. 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 1st each year,

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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.

In order tTo receive Holiday Pay , the employee must be in a paid status the day before and the day after the holiday.

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 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. 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).

1211.3 Compensation for Holidays Worked

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

Section 1312. Compensation and Allowance Other Than Base Salary 1312.1 Public Employee Retirement System 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 Public Employees’ Retirement System (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.

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(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. benefits. 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 seven percent (7%) for the last twelve (12) months of employment. Internal Revenue Service (IRS) Code 414H(2) wil l 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.

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 upon adoption by the Stockton City Council and P.E.R.S. Administration Board.

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 Stockton City Council and P.E.R.S. Administration Board.

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

(e) 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 and (employee contribution) and other compensation as qualified by state law towards the Public Employees’ Retirement System (P.E.R.S.) towards employer’s share of cost for P.E.R.S. pension on a post -tax basis in the form of a payroll deduction. The City will seek an IRS private letter ruling to determine whether or not the IRS permits the employee’s contribution to the employer’s share of pension cost to be treated on a pre -tax basis. If the IRS issues a private letter ruling allowing employee’s contribution towards employer pension cost on a pre -tax basis, the City wil l change the deduction from post -tax to pre-tax as soon as administratively possible after the IRS final determination.

1312.2 Public Employee Retirement System Benefits for Unit Employees hired on or after December 29, 2012.

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(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 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 employee’s current base salary (as the employee contribution) and any other compensation as qualified by state law towards P.E.R.S. retirement benefit through a payroll deduction.

1312.3 PERS 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 CalPERS 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 PERS AB340, shall be subject to the PERS pension formula of two percent (2%) at sixty (60) with no optional pension enhancements and the other provisions of the retirement tier they were hired under. Employee’s 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 P.E.R.S. retirement benefit through a payroll deduction.

(b) Employees without Reciprocity:

Employees hired on or after January 1, 2013, shall be subject to the PERS 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 percent (2%) at sixty-two (62) as determined by CalPERS. 1312.4 Uniforms

(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 A llowance. Effective July 1, 2024, for employeesEmployees 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 twothree hundred and fifty dollars ($250.00$300.00) as needed and approved by the employee’s supervisor and department head . Employees shall be allowed to use any unused funds towards the purchase of (1) insoles and socks and/or (2) an additional pair of safety

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protective footwear. Unless approved otherwise, employees are limited to a total of $300.00 per fiscal year for safety protective footwear.

1312.5 Preventive Shots

Employees in the Municipal Utilities Department (MUD) whose work assignments involve potential exposure to hazardous waste water shall, at the employee's option, be provided all necessary medical immunization available for the prevention of job incurred illness.

1312.6 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 implemented with the concurrent implementation of the Operating Engineers' Local No. 3 - City of Stockton, Drug/Alcohol Safety Program.

1312.7 Longevity Pay

Effective August 1, 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 July 1, 2012, with two and one -half percent (2.5%) 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 (1.5%).

1312.8 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.

1312.9 Education, Training 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 emplo yees 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.

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1312.10 Certification, Certification Training and Special Certifications

(a) Certification dues or fees required of employees in their specialized fields of work will be reimbursed by 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. The City will reimburse employees for the costs of obtaining and maintaining certifications that are required pursuant to their job specification/job description. Reimbursement for the cost of obtaining and maintaining memberships and certifications that are identified as “desired” in a job description/specification, or are not identified at all, is at the discretion of the department head.

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

Water,
Wastewater
Water Distribution CWEA One Time
Add Pay
5 4 and 5 4 $1,000.00
4 3 3 $750.00
3 2 2 $200.00
2 1 1 $150.00
1 $100.00

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 certifications shall result in the employee being demoted to the level according to their certification level. The employee will be moved back to their former level if they obtained the necessary certification within twelve (12) months. 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) Add on pays will be issued to employees with the following special certifications up to a maximum of eight (8) Crane Operators:

Crane $1.75
Backflow $1.00

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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
required certification
level
$1,000.00
Two levels above
required certification
level
$2,000.00

As of June 30, 2014, 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 grandfathered in to continue receiving such add pay as long as other require ments are met as described above. Effective July 1, 2014 , 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.

(e) Employees who are employed in the classification of Water/Sewer Equipment Operator and possess a Grade D1 Distribution Operator Certificate issued by the California Department of Health Services shall receive an additional three percent (3%) of base pay.

Section 1413. Insurance Plans and Retirement Benefits
1413.0 Reopener 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 O&M 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.

1413.1 Health and Welfare Benefits

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Welfare Trust Fund Plan ( Anthem Plans A, B, C, and D, and Kaiser 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 May 1, 2024, City shall contribute the following:

• The City shall contribute up to $711.00 per month toward the cost of the monthly premium for employee -only medical/dental/vision plan coverage.

• The City shall contribute 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.

• The City shall contribute 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 plan coverage.

3)1) Effective July 1, 2025,The City shall contribute the following:

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• Up to $ 740.00936.10 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage. • Up to $1,342.001,698.55 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $1,788.002,263.20 per month toward the cost of the monthly premium for employee plus two (2) or more dependents
medical/dental/vision plan coverage.

2) Effective January 1, 2027, the City contributes the following:
• Up to $973.54 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,766.49 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $2,353.73 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

• 3) Effective January 1, 2028, the City contributes the following:
• Up to $993.01 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,801.82 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $2,400.80 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

4) Effective January 1, 2029, the City contributes the following:
• Up to $1,012.88 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

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• Up to $1,837.86 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $2,448.82 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/visions/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 O&M 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 administrative overhead for Operating Engineers 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 the City and the plan participants. Effective July 1, 2014, the City will add to the monthly plan costs for the Operating Engineer Plans offered to employees those 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.

1413.2 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.

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(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.

1413.3 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.

1413.4 Life Insurance

The City shall provides, at no cost to the employee, a term each employee group term life insurance policy and an accidental death and dismemberment insurance policy with a valuein the amount of of fifty thousand dollars ($50,000). In addition, employees shall have the opportunity to can purchase additional voluntary life insurance through their union or through the City’s IRS 125 vendor.

1413.5 Long-Term Care

Employees can purchase optional long term care coverage from PERS to cover home care and nursing home care. The premiums rates are established by PERS based on the age of the participant.

1413.6 Health Reimbursement Account (HRA)

The City will contribute an amount equal to five and one half percent (5.5%) of the employee’s current base salary that was previously contributed to deferred compensation and redirect that same contribution into an IRS qualified HRA for each employee to use for reimbursement of current and retiree medical cost reimbursements.

Section 1514. Salaries

15.1 14.1 Salary Rates

(a) Effective September 20, 2026 May 1, 202 4, or the pay period following City Council approval, which ever is later, employees will receive a n eighttwo percent (82%) Cost of Living Adjustment (COLA) to base pay (Attached is the revised salary schedule including the 2% COLA plus market adjustment).

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(b) Effective the first full pay period starting June 27, 2027 Effective July 1, 2024, employees will receive a zerotwo percent (02%) COLA to base pay.

(c) Effective the first full pay period starting June 25, 2028 Effective July 1, 2025, employees will receive a threetwo percent (32%) COLA to base pay.

(d) The 2022 Total Compensation survey prepared by Bryce Consulting made specific recommendations for internal relationships between classifiactionsclassifications in the O&M 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) Upon request of the O&M, but no later than September 1, 2024, the parties agree to discuss (1) Salary Survey Ju risdictions and (2) Sala ry Survey Elements to be utilized by both parties during the next round of negotiations for the successor MOU. The parties endeavor to complete this process by the start of the next round of MOU negotiations. In the event parties do not reach a consensus on the jurisdictions and elements, the parties would be able to perform their own surveys during the next round of MOU negotiations.

Lump Sum Payment

a. Each employee who is employed in the bargaining unit as of July 1, 2024 will receive a two thousand dollar ($2,000.00) lump sum non - pensionable bonus (subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.

b. Each employee who is employed in the bargaining unit as of July 1, 2025 will receive a two thousand dollar ($2,000.00) lump sum non - pensionable bonus (subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.

14.2 Additional Steps
The salary ranges for all classifications is set forth in the City’s Salary Schedule.

Effective September 20, 2026, or the pay period following City Council approval, whichever is later, the City shall add additional steps, consistent with the attached salary schedule, at two and a half percent (2.5%) each step. Consistent with the City practice, progression in the additional steps will require one year of paid status within the step prior, (i.e. progression to Step 7 requires 1 year of service in Step 6 and progression to Step 8 requires 1 year of service in Step 7).

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15.214.3 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 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 conver sion 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.

1514.4 Salary Step Plan

(a) There shall be five (5) to seven (7)up to nine (9) salary steps in each range.

(b) The first step shall be the minimum rate and shall beis 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.)

(c) Step 2 is obtained after satisfactory completion of six (6) months at the first step, Steps 3 through 9 are obtained after satisfactory completion of one (1) year in the previous step.

(d) If a department head recommends withholding increases to salary steps two (2) through seven (7) because an employee has not achieved the level of performance required, notice must be received by the City Manager 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. Fai lure to abide by the 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 anniversary date, the increase shall be automatically granted.

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

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

The fourth step shall be paid upon the satisfactory com pletion of one (1) year service at the third step.

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 department head.

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.

The seventh step shall be paid upon the satisfactory completion of one (1) year service at the sixth 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 7 for a given range.

(e) Salary step increases shallwill 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.

(f) 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.

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

(hb) Salary Step Entry -Level Classifications. The City Manager may create a ten percent (10%) salary step reduction to any entry -level classification represented by this bargaining unit. The next and all subsequent salary steps shall be paid upon the satisfactory completion of one (1) year service at current salary step.

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

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Whenever 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.

15.714.5 Salary 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 a salary equal to, or greater than, the minimum rate for the higher class, that employee shall be entitled to the next step in the salary scale 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 promoted 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.

15.814.6 Transfer

An employee may be transferred from a class in one department, 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 comparable class, the employee must be qualified, 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 completion of pertinent test s, 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.

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15.9 Salary on Reinstatement

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 position 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, the employee may be placed on a "Y" rate. A "Y" rate means that the monthly 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.

15.1114.7 Acting Pay

(a) General Provisions . 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.

(b) When there is an existing promotional eligibility list, and acting pay assignment is expected to be for more than twenty (20) work days, acting pay shall be assigned from the top three (3) on the promotional eligibility list. If the assignment is for twenty (20) work days or less, the highest ranking employee on the promotional list within the division shall be assigned. When there is no eligible list, section (c) below shall apply.

(c) If there is no existing list, acting pay selection shall be made from the five (5) most qualified employees in the section.

(1) Sections are defined, for the purpose of this clause only, as the sub -groups listed :(a) Water, (b) Sewer, (c) Wastewater Operations, and (d) Wastewater Maintenance; and

(2) Qualifications for the purpose of this section, as determined

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by the department head or designee, shall include all the following equal factors:

(a) Seniority in grade within any class immediately below the vacant position.

(b) Worker experience relative to the vacant position.

(d) Certificates or other formal qualifica tion devices such as eligibility lists.

If all things are equal based on above factors, the seniority within the City shall be considered.

(3) The opportunity for acting Pay shall be rotated among the five (5) most qualified employees within each section.

(d) Assignments from other than a promotional eli gibility list shall not exceed one-hundred and twenty (120) days per fiscal year per employee.

15.1214.8 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.

15.1314.9 Special Assignment Pay

The City Manager may approve additional compensation in an amount not to exceed one additional salary step when an employee is assigned in writing by the supervisor to perform additional duties and responsibilities for the duration of the special assignment.

Any Senior Plant Operator who is assigned in writing by an appropriate authorit y to assume supervisory authority over another Senior Plant Operator shall receive an additional five percent (5%) special assignment pay per shift when so assigned.

15.14 Bi-Weekly Pay Period
The City and the Association 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.

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15.15 One Time Payment

Effective May 1, 2024, the City will make a one-time payment in the amount of five thousand dollars ($5 ,000.00), subject to applicable withholdings, to Operations and Maintenance 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.

Section 1615. Severability of Provisions
Ifn 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 1716. 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 MOU.

This MOU shall supersedes all existing Memoranda of Understanding between the City and the Union.

Section 1817. Scope of Agreement
Except as otherwise specifically provided herein, this MOU including Appendices “A”, “B”, and “C”, and “D” 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 1918. Duration of Agreement
All provisions of thisThis MOU shall beare effective the date of execution unless otherwise indicated through June 30, 20269.

Section 2019. Maintenance of Operations/City Rights
(a) It is recognized that the need for continued and uninterrupted operation of City

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services is of paramount importance. T herefore, 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 Resolution Section 12 (g) the Union or any person acting in its behalf, or each employee in a classification represented by the Union, shallwill not cause, authorize, engage in, encourage, or sanction a strike, unfair labor practice strike, or sympathy strike, 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 o ther 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.

(bd) The Union recognizes the duty and obligation of its representatives and members to comply with the provisions of this Memorandum of Understanding 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.

Section 2021. GPS Policy, Rest Periods, New Standby List The parties agree to hold Meet and Confer meetings to discuss the Global Positioning System (GPS) Policy, Rest Periods, and a new Standby List proposed by the O&M unit during negotiations. The parties will hold separate meetings and must mutually agree before any changes may be implemented.

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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 ______________.

OPERATIONS AND MAINTENANCE UNIT

Approved as to form:

CITY OF STOCKTON
Operating Engineers’ Local No. 3

By: _______________________

MICHAEL DEANDA
Business Representative

APPROVED AS TO FORM:

By: ______________________________

HARRY BLACKJOHNNY FORD
City Manager

By: ______________________________

ROSEMARY RIVAS MARIE GUILLORY -
JONES
Interim Director of Human Resources

By: ______________________________

CHARLES SAKAICHE JOHNSON
Negotiator for the City

Approved as to form:

Lori Asuncion, City Attorney

By: _______________________
TARYN JONESDONALD A. LARKIN
Deputy Interim City Attorney

ATTEST:

CITY CLERK

______________________________

ELIZA GARZAKATHERINE ROLAND
City Clerk

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Appendix A. Salary Schedule Effective September 20, 2026 Title Group 1 2 3 4 5 6 7 8 9
Chemist O&M - BO $77,017 $80,880 $84,921 $89,159 $93,612 $95,952 $98,351 $100,810 Collection Systems Operator
(Entry Level) O&M - BO $60,564 $63,580 $66,770
Collection Systems Operator
(Journey Level) O&M - BO $70,100 $73,604 $77,283 $79,215 $81,195 $83,225 Electrical Technician (Entry
Level) O&M - BO $76,361 $80,286
Electrical Technician
(Journey Level) O&M - BO $84,412 $88,752 $90,970 $93,245 $95,576 Environmental Control
Officer (Entry Level) O&M - BO $78,546 $82,475
Environmental Control
Officer (Journey Level) O&M - BO $87,931 $92,329 $94,637 $97,003 $99,428 Hydrant Worker O&M - BO $51,625 $54,278 $57,068 $60,002 $63,086 $64,663 $66,279 $67,936 Laboratory Technician O&M - BO $65,909 $69,193 $72,658 $76,286 $80,112 $82,115 $84,167 $86,272 Microbiologist O&M - BO $82,758 $86,908 $91,250 $95,804 $100,589 $103,103 $105,681 $108,323 Plant Maintenance Machinist O&M - BO $85,883 $90,175 $94,685 $99,412 $104,397 $107,007 $109,682 $112,424 Plant Maintenance Mechanic
(Entry Level) O&M - BO $80,255 $84,272
Plant Maintenance Mechanic
(Journey Level) O&M - BO $88,484 $92,910 $95,232 $97,613 $100,054 Plant Maintenance Worker O&M - BO $57,621 $60,517 $63,536 $66,701 $70,051 $71,802 $73,597 $75,437 Plant Operator (Entry Level) O&M - BO $72,960 $76,597 $80,430 $82,440 $84,501 $86,614

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Plant Operator (Journey
Level) O&M - BO $84,459 $88,665 $93,107 $95,435 $97,820 $100,266 Title Group 1 2 3 4 5 6 7 8 9
Plant Operator-in-Training O&M - BO $69,777 $73,364 $77,135 $81,099 $85,268 Senior Collection Systems
Operator O&M - BO $88,890 $95,557 $97,946
Senior Electrical Technician O&M - BO $98,548 $103,613 $106,203 $108,858 $111,580 Senior Environmental
Control Officer O&M - BO $109,470 $114,946 $117,819 $120,765 $123,784 Senior Hydrant Worker O&M - BO $63,311 $66,565 $69,987 $73,584 $77,366 $79,300 $81,283 $83,315 Senior Plant Maintenance
Mechanic O&M - BO $99,413 $104,397 $107,007 $109,682 $112,424 Senior Plant Operator O&M - BO $88,292 $92,695 $97,612 $102,777 $108,227 $110,932 $113,706 $116,548 Senior Water Systems
Operator O&M - BO $92,614 $99,560 $102,049
Water Field Technician O&M - BO $55,531 $58,310 $61,220 $64,280 $67,490 $70,869 $72,641 $74,457 $76,318 Water Systems Operator
(Entry Level) O&M - BO $66,346 $69,650 $73,145 $74,974 $76,848 $78,770 Water Systems Operator
(Journey Level) O&M - BO $76,793 $80,632 $84,662 $86,778 $88,948 $91,171 Water/Sewer Equipment
Operator O&M - BO $71,273 $74,823 $78,580 $82,504 $86,615 $88,780 $91,000 $93,275

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Appendix B. Side-Letter of Agreement
Exhibit A & B Employees
Provisions in this APPENDIX B Side Letter of Agreement pertain only to Employees identified in Exhibit A . However, 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-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-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 – Employees 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 de cline short-term assignments to the waste water facility subject to department guidelines will lose this additional pay.

Section 3 – Supplemental Retirement Contribution and Benefit

The City shall contribute an amount necessary to fund a supplemental retirement benefit for Exhibit A employees. 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 Exhibit A 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;

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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;

(d) The benefit level paid to each eligible employee shall be based on their retirement category as identified in Exhibit A based on the following formula:

(1) Categories 1, 2 and 3 : All actual years of service (prior City of Stockton only, OMI and City of Stockton years of service as of March 1, 2008 prospectively) x 0.6%.

(2) Category 4: Actual years of service with OMI x 2.0%; actual years of service with City of Stockton as of March 1, 2008 prospectively x 0.6%.

Benefits shall accrue and be paid in accordance with the PARS plan document adopted by City Council.

Section 4 – Compensation and Benefits – Exhibit B Employees Only

Employees identified in Exhibit B shall receive fully paid employee City Health Plan (Medical, Vision, and Dental) or the option of the fully paid OE3 Medical Plan Schedule A 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 1314.1(c).

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Appendix B – Exhibit A Employees

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Appendix B – Exhibit A Employees

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Appendix B – Exhibit A Employees

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Appendix B – Exhibit B Employees

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Appendix B – Exhibit B Employees

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Appendix C. Side Letter of Agreement
Longevity Incentive

1. The provisions of this APPENDIX C Side Letter of Agreement only to Employees identified in the corresponding attachment marked as APPENDIX C and cannot be amended, changed, or deleted unilaterally by either party. However, 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 Side Letter of Agreement.

2. Effective March 1, 2008, employees identified in APPENDIX C shall be entitled to receive the amounts noted for each year of service up to a maximum of 5 years. The total amounts shown are intended to be paid on a monthly basis by the date shown (e.g., for amounts totaling $15,000, $1,250.00 shall be paid monthly, so the total amount noted shall have been paid out by 3/1/2009).

3. Employees listed in APPENDIX C shall be entitled only to the amount earned (in paid status) for that month. If an employee terminates employment or is in an unpaid status for a period less than one month, the amount noted shall be prorated for the days in paid status, including paid sick and annual leave. Employees shall not be entitled to payment not earned (unpaid leaves of absences, termination).

4. The amounts noted herein shall not be subject to cost-of-living increases, promotions or other increases to base pay that said employees may earn during the term of this Agreement. Employees who sever their employment relationship with the City and are subsequently reinstated or re-employed, shall not be eligible for any payment herein upon reinstatement or re-employment, except as may be awarded by a court of law or arbitrator.

5. The Longevity Incentive shall be reported to PERS as “PERSable” income by the City.

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Appendix C Longevity Incentive, Maximum Annual Payments

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Appendix C Longevity Incentive, Maximum Annual Payments

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Appendix D. Rates of Pay
Base Rate of Pay: The employees’ Base Rate of Pay is their step as listed on the salary schedule for their classification.

Straight Time Rate of Pay: The employees’ Straight Time Rate of Pay includes the employee’s base rate of pay plus all percentage based add pays.

Regular Rate of Pay: The employees’ Regular Rate of Pay as defined by the Fair Labor Standards Act (FLSA).

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF STOCKTON AND THE OPERATIONS AND MAINTENANCE

UNIT AND AUTHORIZING ITS IMPLEMENTATION

The City’s negotiating team met and conferred with officials of the Operations and Maintenance Unit and reached an agreement for a successor Memorandum of Understanding. On August 31, 2026, the Operations and Maintenance Unit ratified the agreement by a majority vote of their members; and

The City of Stockton and the Operations and Maintenance Unit have in good faith completed their meet and confer obligations regarding their successor Memorandum of Understanding. Human Resources and the Administrative Services Department have conducted a comprehensive review of the existing Memorandum of Understanding and have recommended revisions to salary and administrative provisions; 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 Operations and Maintenance Unit is attached hereto as Exhibit 1 and made part hereof by this reference, is hereby approved, and adopted.

2. The City Manager is hereby authorized and directed to execute the Operations and Maintenance Unit Memorandum of Understanding to be effective July 1, 2026.

3. The City Manager is hereby authorized and directed to increase expenditure appropriations in the annual budget for Fiscal Year 20 26-27, as necessary to carry out the intent of the agreement as shown in Exhibit 2.

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4. The City Manager and the Interim Director of Human Resources 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 15, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE D. ROLAND, CMC, CPMC
City Clerk of the City of Stockton
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CITY OF STOCKTON

MEMORANDUM OF UNDERSTANDING

OPERATIONS AND MAINTENANCE UNIT

This Memorandum of Understanding (MOU) is entered into pursuant to the Meyer s- 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, 2026 and ending June 30, 2029.

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TABLE OF CONTENTS
Section 1. Recognition ................................ ................................ ................................ .............. 1 Section 2. Union Rights ................................ ................................ ................................ ............. 1 Section 3. Probation ................................ ................................ ................................ .................. 4 Section 4. Layoff ................................ ................................ ................................ ....................... 5 Section 5. Reemployment ................................ ................................ ................................ ......... 7 Section 6. Discipline ................................ ................................ ................................ .................. 8 Section 7. Grievance Procedures ................................ ................................ .............................. 9 Section 8. Leaves ................................ ................................ ................................ ....................12 Section 9. Days and Hours of Work ................................ ................................ .........................19 Section 10. Overtime ................................ ................................ ................................ ................20 Section 11. Holidays ................................ ................................ ................................ ................24 Section 12. Compensation and Allowance Other Than Base Salary ................................ ........26 Section 13. Insurance Plans and Retirement Benefits ................................ .............................. 31 Section 14. Salaries ................................ ................................ ................................ .................34 Section 15. Severability of Provisions ................................ ................................ ......................38 Section 16. Past Practices and Existing Memoranda of Understanding ................................ ...39 Section 17. Scope of Agreement ................................ ................................ .............................. 39 Section 18. Duration of Agreement ................................ ................................ ..........................39 Section 19. Maintenance of Operations/City Rights ................................ ................................ .39 Section 20. GPS Policy, Rest Periods, New Standby List ................................ ....................... 40 Appendix A. Salary Schedule Effective September 20, 2026 ................................ ...................42 Appendix B. Side-Letter of Agreement Exhibit A & B Employees ................................ .............44 Appendix C. Side-Letter of Agreement Longevity Incentive ................................ ......................51 Appendix D. Rates of Pay ................................ ................................ ................................ ........54

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Section 2. Union Rights

2.1 Union Membership Dues and Payroll Deductions

(a) 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 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.

7. Deduction 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.

(b) Hold Harmless Provision

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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 Orientation and Information Requirements

(a) 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 thirty (30) days for all bargaining unit members.

2.3 Use of City Facilities

(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 interfer e 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.

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2.4 Advance Notice

2.5 Attendance at Meetings by Employees

Employees who are official representatives or unit representatives of the Union shall be given reasonable time off with pay to attend meetings with City management representatives where matters within the scope of representation or grievances are being considered. Such employee representatives shall submit a request for an 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 five (5) per recognized bargaining unit. For MOU negotiation meetings, the number of employees excused for such purposes shall not exceed six (6) per recognized bargaining unit.

O&M Time Bank. Upon request by O&M once per calendar year, each employee must contribute up to one (1) hour of vacation time to maintain a bank of time to be used by O&M officers, directors, and members for O&M business that occurs during normal work hours, for which paid release time does not apply. Time b ank hours used will not be considered as hours worked. The use of O&M Time Bank must be authorized by an O&M Officer, or O&M director. Members must submit EXHIBIT 1
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the time-off request in advance and receive supervisor approval to attend O&M business that occurs during normal work hours. The total amount of release time in the bank, including any carryover, will at no time exceed five hundred (500) hours. The City’s administration and processing of these contributions will be implemented as soon as administratively possible after ratification of this MOU.

This time bank may be used by representatives who attend new hire orientations at the City. The City will provide the Union current time bank balance in February and August of each calendar year.

2.6 Maintenance of Membership

2.7 Contract Ratification

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

Section 3. Probation

3.1 Purpose

3.2 Original Entrance and Promotional Positions

3.3 Retention/Rejection of Probationer

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At the end of the probationary period, if the service of the probationary employee has been 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 no t 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.

During the probationary period an employee may be rejected at any tim e by the appointing authority. Any employee rejected during the probat ionary 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 section 6 of this MOU and in the Civil Service Ordinance and Civil Service Rules, which are consistent therewith.

3.4 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. This shall include non-represented part-time, seasonal, provisional, and temporary appointments.

Section 4. Layoff

4.1 Layoff

4.2 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
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(10) Human Resources
(11) Information Technology
(12) Municipal Utilities
(13) Police
(14) Public Works

4.3 Notice of Layoff

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

4.4 Precedence by Employment Status

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

The following provisions shall apply in computing total continuous service:

If two (2) or more employees have the same seniority, 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.

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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.

4.5 Employee Options

Employees laid off shall have any of the following choices:

4.6 Health and Welfare Benefits during Layoff

Section 5. Reemployment
(a) The name of each employee who is laid off in accordance with section 4 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.

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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 the 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 6. Discipline
Disciplinary action, including discharge, suspension, reduction in pay or demotion, may be taken against any employee for cause.

6.1 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) Seven (7) 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 mate rials, reports and documents upon which the action is based.

6.2 Administrative Leave

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

6.3 Provisions

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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 7. Grievance Procedures

7.1 Definition

7.2 Filing Deadline

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7.3 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 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. An email will suffice as a formal submission of a Step one (1) Grievance. The Union agrees to state in the subject line of the email “Grievance.”

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

7.4 Scope of Arbitration

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(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 paragraph 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 Section. 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.

7.5 Other Provisions

Complaints 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 7.3. 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 confer ring 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
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may 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 7.3 above shall be taken unless it is determined that the employee is not utilizing such option.

No action under paragraph (c) of Subsection 7.3 above shall be taken if action on the complaint or grievance has been taken by the Civil S ervice Commission or if the complaint or grievance is pending before the Civil Service Commission.

Section 8. Leaves

8.1 Vacation Leaves

Employees accrue vacation leave per pay period with pay in accordance with the following schedules:

(a) FLSA Non-Exempt Employees

Months of Continuous Service Hours Per Pay Period
Less than eighteen (18) 3.08
Eighteen (18) or more but less
than ninety (90)

4.15 Ninety (90) or more but less than
180

5.54 180 or more but less than 300 7.27
More than 300 Additional 0.27 hours for each
additional year of completed
service in excess of 25 years

(b) FLSA Non -Exempt Employees Maximum Vacation Accrual . Employees reaching the maximum hours will stop accruing additional hours until they are below the caps listed below.

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Under 1.5 years 120 hours

1.5 - 7.5 years 240 hours

7.5 - 15 years 280 hours
15 – 25 years 320 hours
26 years 328 hours
27 years 336 hours
28 years 344 hours
29 years plus 7 hours each additional year

Months of Continuous Service Hours Per Pay Period
Less than eighteen (18) 4.62
Eighteen (18) or more but less
than ninety (90)

5.69 Ninety (90) or more but less than
180

7.23 180 or more but less than 300 8.81
More than 300 Additional 0.27 hours for each
additional year of completed
service in excess of 25 years

(d) FLSA Exempt Employees Maximum Vacation Accrual. Employees reaching the maximum hours will stop accruing additional hours until they are below the caps listed here.

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) Vacation Scheduling . Vacation leaves shall be scheduled with due consideration for the wishes of the employee and so as to not interfere with the normal operation of the City’s business.

(f) Holiday during Vacation. If any such paid holidays fall within an employee's vacation leave, the employee will not be charged vacation accrual for that day.

(g) Vacation Sellback.

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During the month of December, employees may make an irrevocable election to cash out up to forty (40) hours of vacation leave for the succeeding calendar year.

(h) 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 straight time 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.

8.2 Sick Leave

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

(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, 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.

Such 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, EXHIBIT 1
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grandparent and grandchild, legal depende nt, 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 (1) 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 FMLA, CFRA, or Pregnancy Disability Leave (PDL).

Failure to notify as soon as possible and in conforming to the thirty (30) minute notification shall be cause for the following disciplinary action:

(1) For the first time within a six (6) month period, a Memorandum of Discussion.

(2) For the second time within a six (6) month period, a Letter of Reprimand.

(3) For any subsequent time within a six (6) month period, suspension from work; or at any time four (4) or more
incidents occur within a six (6) month period, the employee may be discharged.

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(e) Verification Procedures

(1) Before being paid for the use of accrued sick leave, the employee shall submit a request for sick leave form, stating the dates and hours of absence, and the type of sick leave being requested such as sick leave for self, family member and/or FMLA.

The employee has the right to Union representation at such meeting. After such meeting, and depending on the factual circumstances, the City may:

(a) Place the employee on restricted sick leave for a period of not more than four (4) months, under the direction of the Director of Human Resources pursuant to section (e)(2) above;

(b) Suspend the employee without pay for up to five (5) days for abuse of sick leave; or dismissal from employment if a prior suspension involved abuse of sick leave;

(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:

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(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.

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

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

8.3 Other Leaves with Pay

(a) Bereavement Leave . In the event of a death of an immediate family member, the employee will be granted up to five (5) days bereavement leave. The City provides paid bereavement leave for the first three (3) days. The employee may use any other paid leave for the remaining two (2) days of bereavement leave.Immediate family is restricted to the employee’s parents, spouse, parent-in- EXHIBIT 1
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law, child, sibling, brother -in-law, sister -in-law, grandparent, grandchild, and registered domestic partner.

In the event of the death of a person that is not an immediate family member, the employee's department head may grant up to three (3) days of unpaid bereavement leave.The employee must use accumulated sick leave or annual leave. If the deceased is the person who is the employee’s current “designated person” for purposes of family sick leave pursuant to Section 8.2(c), the request to use sick leave or annual leave shall not be unreasonably denied.

(b) Jury Duty Leave

8.4 Workers' Compensation Leave

(a) Workers' Compensation Benefits shall be provided in accordance with State law and schedules whenever an employee is absent from duty because of disability caused by illness or injury arising out of and in the course of employment which has been declared to be compensable under the Work ers' 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.

8.5 Leave of Absence Without Pay

Leaves of absence are subject to eligibility in accordance with state and federal guidelines. The granting of a leave of absence provides the employee the right to EXHIBIT 1
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return to the position vacated.

8.6 Absence Without Official Leave (AWOL)

(b) Voluntary Resignation. Any employee in this bargaining unit 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.

Section 9. Days and Hours of Work

9.1 Workweek

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requirements of the FLSA. Twelve (12) hour workday employees are not set up in the City’s payroll system as “salaried” and therefore are paid for actual hours worked each pay period (i.e. no salary adjustment); however when the City implements its new payroll system, all employees may be paid for actual hours worked each pay period only (i.e. no more salary adjustment).

9.2 Meal Periods and Rest Periods

(a) Employees shall receive a one (1) hour or one half-hour (1/2) 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. Employees who exceed the time limits prescribed above for lunch and/or rest periods shall have their pay reduced accordingly.

9.3 Reporting to Work

Repeated failure to report to work on time may result in appropriate discipline as set forth below:

(a) For the first time in a six (6) month period, a Memorandum of Discussion.

(b) For the second time within a six (6) month period, a Letter of Reprimand.

(c) For any subsequent time within a six (6) month period, suspension from work; or at any time four (4) or more incidents occur within a six (6) month period, the employee may be discharged.

If an employee reports to the work site after the designated starting time, the employee will be paid only for time actually worked ; however, the employee may be allowed to utilize annual leave for lost pay, provided the employee's supervisor approves.

Any Memorandum of Discussion or Letter of Reprimand regarding tardiness which is more than six (6) months old will be removed from the personnel file upon request.

Section 10. Overtime

10.1 Overtime Authorization

All compensable overtime m ust be authorized by the depart ment head or their EXHIBIT 1
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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.

10.2 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 time worked in excess of forty (40) hours in any seven (7) day FLSA workweek. Such overtime shall be paid at one and one-half (1 1/2) times the employee’s regular rate of pay. Observed holidays, floating holidays, jury duty leave, bereavement leave, vacation, and sick leave are considered as time worked for overtime calculation purposes.

(b) The City may require mandatory overtime when operational needs exist and if the City dictate s 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

10.5(b).

(c) Temporary Upgrade Pay. Employees 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.

10.3 Standby Pay

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

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

(1) Each employee 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 . Employees on Standby shall ensure that they are available and able to return to work to perform their assigned duties.

(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.

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(3) Standby shall be assigned in a minimum of eight (8) hour blocks., i.e., Monday - Friday work week standby can be eight (8), sixteen (16), twenty-four (24) hour blocks. The block of standby will be to one (1) person per a twenty-four (24) hour period.

Standby for weekends i.e., Saturday, Sunday or extended holiday weekends (Friday – Sunday, or Saturday – Monday) will be assigned 8 - 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 four dollars ($4.00) per hour while assigned to be on standby. 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 worked for purposes of calculating overtime.

10.4 Call Back

Employees who are called back to physically return to work from off duty status, shall be compensated for a minimum of two (2) hours and forty -five (45) minutes of pay.

When authorized by the department, employees who are contacted and who provide remote support via telephone, Internet, or network connection will be paid for time worked in fifteen (15) minute intervals . Intervals cannot be compounded or overlapped.

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

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

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

10.5 Compensatory Time (CTO)

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

(b) Accrual. For hours worked in excess of forty (40) hours in a seven (7) day EXHIBIT 1
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work period as defined in section 10.2(a), CTO may be earned at the rate of time and one-half (1-1/2). No more than one hundred (100) hours may be carried on the books at any time.

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

(d) Payment. Once one hundred (100) hours of CTO 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 employee’s regular rate of pay.

At the end of each calendar year, all CTO will be carri ed forward (40 hours maximum), unless the employee elects to have the compensatory balance paid.

Carryover CTO cannot exceed the forty (40) hours maximum.

Any CTO 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) preapproved scheduled day off in December. If the employee is unable to t ake days off as planned in December, the payout will occur in January.

10.6 Meal Allowance

The City shall provide a meal allowance of fifteen dollars and no cents ($15.00) for an employee who is held over and works a minimum of four (4) hours.

10.7 Fatigued Employees Rest Period

(a) The following provision ensures that an employee is not required to work such a significant number of hours that it might lead to extreme fatigue of that employee or place that employee in violation of any state or federal law governing employees possessing a Commercial Driver’s License. Further, the City seeks to provide and maintain a safe working environment. (b) Eligibility. An employee who is required to work four (4) hours or more overtime within a sixteen (16) -hour time period and whose regularly EXHIBIT 1
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scheduled work shift begins fewer than six (6) hours from the time the overtime work ends, will be afforded a full eight (8) -hour rest period before returning to work.

Section 11. Holidays

11.1 Qualifying for Holiday Pay

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All regular status employees, excluding provisional, temporary, and part -time employees, shall be entitled to 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 9/80 schedule, or 12 hours of holiday pay for 12-hour shift).

11.2 Holidays Observed by the City

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) Last Monday in May ................................................................... Memorial Day (6) July 4 .................................................................................. Independence Day (7) First Monday in September .............................................................. Labor Day (8) Second Monday in October (FLOATING).................. Indigenous Peoples Day (9) November 11 ............................................................................. Veteran's Day (10) Fourth Thursday in November .................................................... Thanksgiving (11) The day following the day known as Thanksgiving
(12) December 25 ............................................................................ Christmas Day

For positions that observe holidays, employees accrue floatin g holiday ho urs equivalent of two (2) workdays annually on the first full pay period to a maximum of two (2) workdays. Floating holidays must be utilized in full day increments. Upon separation, unused floating holiday hours will be paid out at the employee’s current straight time rate of pay.

To receive Holiday Pay, the employee must be in a paid status the day before and the day after the holiday.

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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. 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).

11.3 Compensation for Holidays Worked

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

Section 12. Compensation and Allowance Other Than Base Salary

12.1 Public Employee Retirement System 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 Public Employees’ Retirement System (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).

The City will provide P.E.R.S. California Government Code section 21574 (Fourth EXHIBIT 1
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Level of 1959 Survivor Benefits) as added P.E.R.S. benefits, to be effective upon adoption by the Stockton City Council and P.E.R.S. Administration Board.

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

12.2 Public Employee Retirement System 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 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.

12.3 PERS Benefits for Employees hired on or after December 29, 2012 (a) Employees with Reciprocity:

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(b) Employees without Reciprocity:

12.4 Uniforms

(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 A llowance. Employees 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 three hundred dollars ($300.00) as needed and approved by the employee’s supervisor and department head . Employees shall be allowed to use any unused funds towards the purchase of (1) insoles and socks and/or (2) an additional pair of safety protective footwear. Unless approved otherwise, employees are limited to a total of $300.00 per fiscal year for safety protective footwear.

12.5 Preventive Shots

12.6 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 implemented with the concurrent implementation of the Operating Engineers' Local No. 3 - City of Stockton, Drug/Alcohol Safety Program.

12.7 Longevity Pay

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shall grandfather only those employees who complete twelve (12) continuous years of service with the City as of July 1, 2012, with two and one -half percent (2.5%) 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 (1.5%).

12.8 Credit Union

12.9 Education, Training and Development.

12.10 Certification, Certification Training and Special Certifications

Water,
Wastewater
Water Distribution CWEA One Time
Add Pay
5 4 and 5 4 $1,000.00
4 3 3 $750.00
3 2 2 $200.00
2 1 1 $150.00
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Water,
Wastewater
Water Distribution CWEA One Time
Add Pay
1 $100.00

(c) Add on pays will be issued to employees with the following special certifications up to a maximum of eight (8) Crane Operators:

Crane $1.75
Backflow $1.00

(d) An employee assigned to the wastewater , water treatment, water production and water distribution function in the operator series who receives and maintains a level 4 or 5 Wastew ater, water treatment, water production and water distribution Operator Certification will receive the following quarterly amounts added to their 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
required certification
level
$1,000.00
Two levels above
required certification
level
$2,000.00

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Equipment Operator and possess a Grade D1 Distribution Operator Certificate issued by the California Department of Health Services shall receive an additional three percent (3%) of base pay.

Section 13. Insurance Plans and Retirement Benefits

13.0 Reopener Clause for Health Insurance

13.1 Health and Welfare Benefits

(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 Kaiser Plans A , B, and A+ ). The City shall offer two (2) or more medical plans to regular status employees.

1) The City shall contribute the following:
• Up to $936.10 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
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for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $2,263.20 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

3) Effective January 1, 2028, the City contributes the following:
• Up to $993.01 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,801.82 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.
• Up to $2,400.80 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

4) Effective January 1, 2029, the City contributes the following:
• Up to $1,012.88 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.
• Up to $1,837.86 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

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• Up to $2,448.82 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

(f) Payment of costs for City administrative overhead for Operating Engineers sponsored Plans.

13.2 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.

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

13.3 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.

13.4 Life Insurance

The City provide seach employee group term life insurance policy and a n accidental death and dismemberment insurance policy in the amount of of fifty thousand dollars ($50,000). In addition, employees can purchase additional voluntary life insurance through their union or through the City’s IRS 125 vendor.

13.5 Long-Term Care

Employees can purchase optional long term care coverage from PERS to cover home care and nursing home care. The premiums rates are established by PERS based on the age of the participant.

13.6 Health Reimbursement Account (HRA)

Section 14. Salaries

14.1 Salary Rates

(a) Effective September 20, 2026 , or the pay period following City Council approval, whichever is later, employees will receive a two percent (2%) Cost of Living Adjustment (COLA) to base pay (Attached is the revised salary schedule including the 2% COLA plus market adjustment).
(b) Effective the first full pay period starting June 27, 2027, employees will receive a two percent (2%) COLA to base pay.

(c) Effective the first full pay period starting June 25, 2028, employees will receive a two percent (2%) COLA to base pay.

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(d) The 2022 Total Compensation survey prepared by Bryce Consulting made specific recommendations for internal relationships between classifications in the O&M Unit and employees in the same job family. In the event these internal relationships change, the parties will consider ho w to address compaction between those classifications.

14.2 Additional Steps
The salary ranges for all classifications is set forth in the City’s Salary Schedule.

14.3 Salary upon Appointment

14.4 Salary Step Plan

(a) There shall be up to nine (9) salary steps in each range.

(b) The first step shall be the minimum rate and is 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.)

(c) Step 2 is obtained after satisfactory completion of six (6) months at the first step, Steps 3 through 9 are obtained after satisfactory completion of one (1) year in the previous step.

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abide by the 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 anniversary date, the increase shall be automatically granted.

(e) Salary step increases will 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.

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

(h) Salary Step Entry -Level Classifications. The City Manager may create a ten percent (10%) salary step reduction to any entry -level classification represented by this bargaining unit. The next and all subsequent salary steps shall be paid upon the satisfactory completion of one (1) year service at current salary step.

14.5 Salary Step After Promotion or Demotion

(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.

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14.6 Transfer

14.7 Acting Pay

(c) If there is no existing list, acting pay selection shall be made from the five (5) most qualified employees in the section.

(1) Sections are defined, for the purpose of this clause only, as the sub -groups listed :(a) Water, (b) Sewer, (c) Wastewater Operations, and (d) Wastewater Maintenance; and

(2) Qualifications for the purpose of this section, as determined by the department head or designee, shall include all the following equal factors:

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the vacant position.

(b) Worker experience relative to the vacant position.

(d) Certificates or other formal qualifica tion devices such as eligibility lists.

If all things are equal based on above factors, the seniority within the City shall be considered.

(3) The opportunity for acting Pay shall be rotated among the five (5) most qualified employees within each section.

(d) Assignments from other than a promotional eli gibility list shall not exceed one-hundred and twenty (120) days per fiscal year per employee.

14.8 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.

14.9 Special Assignment Pay

Section 15. Severability of Provisions
If 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 EXHIBIT 1
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required by law.

Section 16. 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 MOU.

This MOU supersedes all existing Memoranda of Understanding between the City and the Union.

Section 17. Scope of Agreement
Except as otherwise specifically provided herein, this MOU including Appendices “A”, “B”, “C”, and “D” 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 18. Duration of Agreement
All provisions of this MOU are effective the date of execution unless otherwise indicated through June 30, 2029.

Section 19. Maintenance of Operations/City Rights
(a) It is recognized that the need for continued and uninterrupted operation of City services is of paramount importance. The Union and each employee represented thereby agreesthrough exhaustion of the impasse process/mediation/fact finding as set forth in the Employer/Employee Relations Resolution Section 12 (g) the Union or any person acting in its behalf, or each employee in a classification represented by the Union, will not cause, authorize, engage in, encourage, or sanction a strike, unfair labor practice strike, or sympathy strike, 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) 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.

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Section 20. GPS Policy, Rest Periods, New Standby List
The parties agree to hold Meet and Confer meetings to discuss the Global Positioning System (GPS) Policy, Rest Periods, and a new Standby List proposed by the O&M unit during negotiations. The parties will hold separate meetings and must mutually agree before any changes may be implemented.

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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 ______________.

OPERATIONS AND MAINTENANCE UNIT

Approved as to form:

CITY OF STOCKTON
Operating Engineers’ Local No. 3

By: _______________________

MICHAEL DEANDA
Business Representative

APPROVED AS TO FORM:

By: ______________________________

JOHNNY FORD
City Manager

By: ______________________________

MARIE GUILLORY-JONES
Interim Director of Human Resources

By: ______________________________

CHE JOHNSON
Negotiator for the City

Approved as to form:

By: _______________________
DONALD A. LARKIN
Interim City Attorney

ATTEST:

CITY CLERK

______________________________

KATHERINE ROLAND
City Clerk
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Appendix A. Salary Schedule Effective September 20, 2026 Title Group 1 2 3 4 5 6 7 8 9
Chemist O&M - BO $77,017 $80,880 $84,921 $89,159 $93,612 $95,952 $98,351 $100,810 Collection Systems Operator
(Entry Level) O&M - BO $60,564 $63,580 $66,770
Collection Systems Operator
(Journey Level) O&M - BO $70,100 $73,604 $77,283 $79,215 $81,195 $83,225 Electrical Technician (Entry
Level) O&M - BO $76,361 $80,286
Electrical Technician
(Journey Level) O&M - BO $84,412 $88,752 $90,970 $93,245 $95,576 Environmental Control
Officer (Entry Level) O&M - BO $78,546 $82,475
Environmental Control
Officer (Journey Level) O&M - BO $87,931 $92,329 $94,637 $97,003 $99,428 Hydrant Worker O&M - BO $51,625 $54,278 $57,068 $60,002 $63,086 $64,663 $66,279 $67,936 Laboratory Technician O&M - BO $65,909 $69,193 $72,658 $76,286 $80,112 $82,115 $84,167 $86,272 Microbiologist O&M - BO $82,758 $86,908 $91,250 $95,804 $100,589 $103,103 $105,681 $108,323 Plant Maintenance Machinist O&M - BO $85,883 $90,175 $94,685 $99,412 $104,397 $107,007 $109,682 $112,424 Plant Maintenance Mechanic
(Entry Level) O&M - BO $80,255 $84,272
Plant Maintenance Mechanic
(Journey Level) O&M - BO $88,484 $92,910 $95,232 $97,613 $100,054 Plant Maintenance Worker O&M - BO $57,621 $60,517 $63,536 $66,701 $70,051 $71,802 $73,597 $75,437 Plant Operator (Entry Level) O&M - BO $72,960 $76,597 $80,430 $82,440 $84,501 $86,614 Plant Operator (Journey
Level) O&M - BO $84,459 $88,665 $93,107 $95,435 $97,820 $100,266 EXHIBIT 1
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Title Group 1 2 3 4 5 6 7 8 9
Plant Operator-in-Training O&M - BO $69,777 $73,364 $77,135 $81,099 $85,268 Senior Collection Systems
Operator O&M - BO $88,890 $95,557 $97,946
Senior Electrical Technician O&M - BO $98,548 $103,613 $106,203 $108,858 $111,580 Senior Environmental
Control Officer O&M - BO $109,470 $114,946 $117,819 $120,765 $123,784 Senior Hydrant Worker O&M - BO $63,311 $66,565 $69,987 $73,584 $77,366 $79,300 $81,283 $83,315 Senior Plant Maintenance
Mechanic O&M - BO $99,413 $104,397 $107,007 $109,682 $112,424 Senior Plant Operator O&M - BO $88,292 $92,695 $97,612 $102,777 $108,227 $110,932 $113,706 $116,548 Senior Water Systems
Operator O&M - BO $92,614 $99,560 $102,049
Water Field Technician O&M - BO $55,531 $58,310 $61,220 $64,280 $67,490 $70,869 $72,641 $74,457 $76,318 Water Systems Operator
(Entry Level) O&M - BO $66,346 $69,650 $73,145 $74,974 $76,848 $78,770 Water Systems Operator
(Journey Level) O&M - BO $76,793 $80,632 $84,662 $86,778 $88,948 $91,171 Water/Sewer Equipment
Operator O&M - BO $71,273 $74,823 $78,580 $82,504 $86,615 $88,780 $91,000 $93,275 EXHIBIT 1
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Appendix B. Side-Letter of Agreement
Exhibit A & B Employees
Provisions in this APPENDIX B Side Letter of Agreement pertain only to Employees identified in Exhibit A . However, 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-employment and Employment

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

(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 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 – Supplemental Retirement Contribution and Benefit

(a) Only employees listed in Exhibit A 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 Exhibit A 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; EXHIBIT 1
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(d) The benefit level paid to each eligible employee shall be based on their retirement category as identified in Exhibit A based on the following formula:

(1) Categories 1, 2 and 3 : All actual years of service (prior City of Stockton only, OMI and City of Stockton years of service as of March 1, 2008 prospectively) x 0.6%.

(2) Category 4: Actual years of service with OMI x 2.0%; actual years of service with City of Stockton as of March 1, 2008 prospectively x 0.6%.

Benefits shall accrue and be paid in accordance with the PARS plan document adopted by City Council.

Section 4 – Compensation and Benefits – Exhibit B Employees Only

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Appendix B – Exhibit A Employees

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Appendix B – Exhibit A Employees

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Appendix B – Exhibit A Employees

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Appendix B – Exhibit B Employees

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Appendix B – Exhibit B Employees

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Appendix C. Side Letter of Agreement
Longevity Incentive

5. The Longevity Incentive shall be reported to PERS as “PERSable” income by the City.

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Appendix C Longevity Incentive, Maximum Annual Payments

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Appendix C Longevity Incentive, Maximum Annual Payments

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Appendix D. Rates of Pay
Base Rate of Pay: The employees’ Base Rate of Pay is their step as listed on the salary schedule for their classification.

Straight Time Rate of Pay: The employees’ Straight Time Rate of Pay includes the employee’s base rate of pay plus all percentage based add pays.

Regular Rate of Pay: The employees’ Regular Rate of Pay as defined by the Fair Labor Standards Act (FLSA).

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City of Stockton
Legislation Text
File #: 26-0977, Version: 1

APPROVAL OF MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF STOCKTON

AND THE TRADES AND MAINTENANCE UNIT

RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached successor Memorandum of Understanding (MOU) with the Trades and Maintenance Unit effective July 1, 2026, through June 30, 2029.

Summary
In March 2026, City representatives began negotiations with the Trades and Maintenance Unit for a successor MOU, as the contract was set to expire on June 30, 2026. Following a series of bargaining sessions, the City and the Trades and Maintenance Unit successfully reached an agreement on the terms of a successor MOU. The proposed successor MOU includes a three-year term and provides for cost-of-living and market salary adjustments, the addition of salary steps to the bargaining unit salary schedule, increased City contributions toward health insurance premiums, and cleanup language.

The successor MOU for the Trades and Maintenance Unit is intended to ensure that the City maintains a competitive compensation structure that supports the recruitment and retention of qualified employees while promoting internal equity and fiscal responsibility.

DISCUSSION
Background
The Trades and Maintenance Unit represents employees primarily assigned to the City’s Public Works Department. In 2023, the City entered into a three (3) year contract term with the unit. Under this agreement, bargaining unit members received an eight percent (8%) cost of living adjustment (COLA) effective May 1, 2024, a three percent (3%) COLA effective July 1, 2025, two (2) lump sum payments of two thousand dollars ($2,000) paid out in July 2024 and July 2025, a one-time payment in the amount of five thousand dollars ($5,000) effective May 1, 2024, and a two percent (2%) increase to the City’s health contribution for each year of the contract.

In March 2026, City representatives began negotiations with the Trades and Maintenance Unit for a successor MOU. On August 25, 2026, the City reached a tentative agreement on a successor MOU City of Stockton Printed on 9/11/2026Page 1 of 4
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with the Trades and Maintenance Unit. On September 8, 2026, the City was notified that the unit’s members had ratified the tentative agreement.

Present Situation
The relevant amendments under the successor MOU for the Trades and Maintenance Unit are summarized as follows:

1. MOU contract term for three (3) years, effective July 1, 2026, through June 30, 2029 (MOU Section 18).

7. Vacation Sellback. Allows a vacation cash payment option/sell-back of up to forty (40) hours of vacation each calendar year (MOU Section 8).

8. Vacation Accrual. Converts vacation accrual amounts from annual to per-pay-period amounts.

This change reflects how vacation accruals are earned (MOU Section 8).

10.Overtime Eligibility. Adds that vacation is counted as time worked for overtime purposes.

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11.Compensatory Time Off. Clarifies that Compensatory Time Off will be paid out at the employee’s regular rate of pay (MOU Section 10.5).

12.Rates of Pay. Provides clarification of the definition of pay rates to include base rate, straight time rate, and regular rate (MOU Appendix B).

13.Bereavement Leave. Clarifies bereavement leave provisions to ensure compliance with applicable law and replaces court appearance provisions with jury duty pay language (MOU Section 8.3).

14.Union Rights. Establishes a defined timeline of fourteen (14) days for the Union to respond to notices of meet and confer (MOU Section 2).

15.Crane Operator Add Pay. Increases the Crane Operator add pay for the Traffic Signal Electrician classification from $0.30 to $1.75 per hour, following completion of the meet-and- confer process related to changes of the classification’s job specification (MOU Section 12.8).

16.Elimination of language that is duplicative, obsolete, or already governed by City policies or applicable federal and state laws for: non-discrimination, court appearances, longevity pay, call-back pay, standby pay, retirement, bi-weekly pay period, lump sum payment, and one-time payment. Applicable provisions remain fully enforceable and applicable to employees regardless of whether they are specifically referenced in the MOU.

The proposed compensation plan has been reviewed by the Administrative Services Department to ensure consistency with the City's compensation strategy and available budget appropriations.

FINANCIAL SUMMARY
COLA and Market Adjustments
First-year cost includes a 2% increase to base pay and an average 3.88% market rate adjustment, totaling approximately $468,596 in FY27. With a 2% increase in FY28 of $171,135, and a 2% increase in FY29 of $174,558, the total 3-year cost is $814,289.

Additional Salary Steps
The first-year impact of the additional salary step is approximately $105,423. In the second year, the FY28 impact is $247,590, and in FY29, the impact is $392,263. The total three-year cost is approximately $745,276.

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City Health Contribution
The city will contribute an additional 4% in FY27, 2% in FY28, and 2% in FY29 towards the cost of employee health care. This will result in costs of $60,512 in FY27, $61,722 in FY28, and $61,723 in FY29 for a total cost of $183,958 over the term of the agreement.

Safety Protective Footwear
The City will increase the reimbursement to eligible unit members from $250 to $300 per year for safety protective footwear. The fiscal impact is approximately $4,000 per year, for a total three-year cost of $12,000.

Total Cost of the Agreement
The fiscal impact of this agreement is approximately $638,530 in FY27, $484,448 in FY28, and $632,544 in FY29, for a total three-year cost of $1,755,522.

Attachment A - Trades and Maintenance Unit MOU - Redline Attachment B - Trades and Maintenance Unit Costing Table City of Stockton Printed on 9/11/2026Page 4 of 4
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CITY OF STOCKTON

MEMORANDUM OF UNDERSTANDING

TRADES AND MAINTENANCE UNIT
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 section 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 Meyer s- Milias-Brown Act (Government Code sections 3500-3510) and has been jointly prepared by the parties.

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TABLE OF CONTENTS
Section 1. Recognition ................................ ................................ ................................ .............. 1 Section 2. Union Rights ................................ ................................ ................................ ............. 1 Section 3. Compliance with Federal Laws/Safety ................................ ................................ .....55 Section 43. Probation ................................ ................................ ................................ ...............54 Section 54. Layoff ................................ ................................ ................................ .................. 665 Section 65. Reemployment ................................ ................................ ................................ ....... 8 Section 76. Discipline ................................ ................................ ................................ ............. 998 Section 87. Grievance Procedures ................................ ................................ ..................... 10109 Section 98. Leaves ................................ ................................ ................................ .............. 1312 Section 109. Days and Hours of Work ................................ ................................ ................. 2219 Section 1110. Overtime ................................ ................................ ................................ ........ 2321 Section 1211. Holidays ................................ ................................ ................................ ........ 2623 Section 1312. Compensation and Allowance Other Than Base Salary ................................ 2825 Section 1413. Insurance Plans and Retirement Benefits ................................ ...................... 3227 Section 1514. Salaries ................................ ................................ ................................ ......... 3531 Section 1615. Severability of Provisions................................ ................................ ............... 4136 Section 1716. Past Practices and Existing Memoranda of Understanding ............................ 4136 Section 1817. Scope of Agreement ................................ ................................ ...................... 4137 Section 1918. Duration of Agreement ................................ ................................ .................. 4237 Section 2019. Maintenance of Operations/City Rights ................................ .......................... 4237 Appendix A. Salary Schedule Effective September 20, 2026 ................................ ....................39 Appendix B. Rates of Pay ................................ ................................ ................................ .........43

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Section 1. Recognition
Operating Engineers' Local 3, AFL -CIO, hereinafter referred to as the "Union," is the recognized employee organization for the Trades and Maintenance Unit (T&M), certified pursuant to the Employer-Employee Relations Ordinance (Stockton Municipal Code §§ 2- 200, et seq.).

Section 2. Union Rights

2.1 Union Membership Dues and Payroll Deductions

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

(ab) As certified in writing by the Union to the City in a manner consistent with the requirement of (SB) 866 Tthe 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, 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.

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

(cb) Hold Harmless Provision

2.2 New Hire Employee Orientation and Information Requirements

(a) In accordance with Assembly Bill (AB) 119, t 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 thirty (30) days for all bargaining unit members.

2.3 Use of City Facilities

(a) The Union shall be allowed by the department in which it represents employees' use of space on available bulletin boards for communications having Attachment A
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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.

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 opportunity to negotiate if requested with the designated management representatives prior to adoption. The Union shall have fourteen (14) days to request a meet and confer. If the Union fails to request a meet and confer within this time period, it shall be deemed to have waived its right to meet and confer.

2.5 Attendance at Meetings by Employees

ECity e mployees who are official representatives or unit representatives of the Union shall be given reasonable time off with pay to attend meetings with City management representatives, or be where matters within the scope of representation or grievances are bei ng considered. Such employee Attachment A
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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. For MOU negotiation meetings, the number of employees excused for such purposes shall not exceed four (4) per recognized bargaining unit.

T&M Time Bank. Upon request by T&M once per calendar year, each employee covered by this MOU must contribute up to one (1) hour of vacation time to maintain a bank of time to be used by T&M officers, directors, and members for T&M business that occurs during normal work hours, for which paid release time does not apply. Time bank hours used will not be considered as hours worked.

Use of T&M Time Bank must be authorized by a T&M Officer, or T&M director.

Members must submit the time off request in advance and receive supervisor approval to attend T&M business that occurs during normal work hours. The total amount of release time in the bank, including any carryover, will at no time exceed five hundred (500) hours. The City’s administration and processing of these contributions will be implemented as soon as administratively possible after ratification of this MOU. This time bank may be used by representatives who attend new hire orientations at the City. The City will provide the Union current time bank balance in February and August of each calendar year.

2.6 Maintenance of Membership

All employees in the T&M 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, 1989, 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 U nion 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 2 -208 of Employer -Employee Relations Ordinance (Stockton Municipal Code §§2 -200, et seq. ) after providing notice and the opportunity to consult with the Union regarding such matters.

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2.87 Contract Ratification

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, legitimate union activity, or on any other basis prohibited by applicable Federal and State law against any employee or applicant for employment.

3.2 Fair Labor Standards Act. The Union agrees to cooperate with the City to ensure 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 43. Probation

43.1 Purpose

43.2 Original Entrance and Promotional Positions

43.3 Retention/Rejection of Probationer
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During 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 provided in section 67 of this MOU and in the Civil Service Ordinance and Civil Service Rules, which are consistent therewith.

43.4 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. This shall include non -represented part -time, seasonal, provisional, and temporary appointments.

Section 54. Layoff

54.1 Layoff

54.2 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
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(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

54.3 Notice of Layoff

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

54.4 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 employee. The order of layoff among employees not having regular status shall be according to the following categories:

(1) Limited term (i.e., part-time, provisional, and temporary) (2) Probationary

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 a limited term status (i.e., part -
time, provisional, and temporary) shall not count
as service.

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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 T&M Unit who is laid off may complete a City employment application for any position currently staffed 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, they shall have the option of displacing the part time, provisional, or temporary employee.

54.5 Employee Options

Employees laid off shall have any of the following choices:

54.6 Health and Welfare Benefits during Layoff

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(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 pl aced 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 giv en preference in filling vacancies except for those persons placed on said list or lists of re-employment in the 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 76. Discipline
Disciplinary action, including discharge, suspension, reduction in pay or demotion, may be taken against any employee for cause.

76.1 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.

76.2 Administrative Leave

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

76.3 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 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 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 87. Grievance Procedures

87.1 Definition

87.2 Filing Deadline

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87.3 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 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. An email will suffice as a formal submission of a Step one (1) Grievance . The Union agrees to state in the subject line of the email “Grievance.”

(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) working 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 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) working days to investigate the issues, meet with the complainant, and attempt to reach a satisfactory resolu tion 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.

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(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.

87.4 Scope of Arbitration

(c) 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.

87.5 Other Provisions

Complaints 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 87.3. 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) 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.

All grievances of employees in units represented by the Union shall be processed under this Section. If the Stockton Municipal Code and/or Civil Service Rules and Regulations requires that a differing option be available to the employee, no action under p aragraph (c) of Subsection 87.3 above shall be taken unless it is determined that the employee is not utilizing such option.

No action under paragraph (c) of Subsection 87.3 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 98. Leaves

98.1 Vacation Leaves

(a) Vacation Allowance . Employees All regular status employees, excluding provisional, temporary, and part-time employees, shall accrue vacation leave per pay period with pay in accordance with the following schedules:

Months of Continuous Service Hours Per Pay Period
Less than eighteen (18) 3.08
Eighteen (18) or more but less than
ninety (90)

4.15 Ninety (90) or more but less than 180 5.54
180 or more but less than 300 7.27
More than 300 Additional .27 hours for each additional
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year of completed service in excess of
25 years

(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.

(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) Maximum Vacation Accrual. Employees who reach the maximum accrual limits set below shall cease accruing additional vacation hours until their accrued balance falls below the applicable cap. 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. Effective July 1, 2012, the following maximum vacation accruals shall take effect. For employees who on July 1, 2012 have vacation balances that exceed their maximum shall have until June 30, 2013 to use sufficient vacation to get under the maximum allowed. If an employee does not get below the maximum by June 30, 2013, they shall retain their existing earned vacation, but shall not earn any additional vacation until they are under the maximum vacation accrual allowed.

Maximum Vacation Accrual Caps

40 Hour Employee

Under 1.5 years 120 hours (15 days for 8 hour shift)

1.5 – 7.5 years 240 hours (30 days for 8 hour shift)

7.5 – 15 years 280 hours (35 days for 8 hour shift)
15 – 25 years 320 hours (40 days for 8 hour shift)
26 years 328 hours (41 days for 8 hour shift)
27 years 336 hours (42 days for 8 hour shift)
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28 years 344 hours (43 days for 8 hour shift)
29 years 352 hours (44 days for 8 hour shift)

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

(c) Vacation Scheduling . Vacation leaves shall will be scheduled with due consideration for the wishes of the employee and so as to not interfere with the normal operation of the City business. Vacation requests are accepted on a day for day basis.

(d) Holiday during Vacation. If any such paid holidays fall within an employee's vacation leave, the employee will not be charged vacation accrual for that day.

(e) Vacation Sellback.

During the month of December, employees may make an irrevocable election to cash out up to forty (40) hours of vacation leave for the succeeding calendar year.

Employees that cash out a portion of their vacation accrual will be paid on the first check in December of the following calendar year. Payments are subject to all applicable payroll taxes and withholding.

(ef) 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 shallwill be made at the final straight time 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.

98.2 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 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 Attachment A
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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, illness, injury, or exposure to contagious disease which incapacitates the employee from performing normal work duties.

This includes disabilities caused or contributed by pregnancy, miscar riage, 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 that otherwise would not be covered by the Family Medical Leave Act (FMLA) or the California Family Rights Act (CFRA) leaves.

Such 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 depende nt, 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 (1) 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 FMLA, 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, included but not limited to scheduled medical, dental or vision appointments), the employee shall request authorization for such sick leave from the de partment head prior to such absence.

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forms of sick leave notification in writing to employees; however, at all times the employee must contact their direct supervisor directly when not able to report to work. If the employee’s direct supervisor is unavailable, the employee must contact the next-level supervisor.

Failure to notify as soon as possible and in conforming to the thirty (30) minute notification shall be cause for the following informal and formal disciplinary action:

(1) For the first time in a six (6) month period, a Memorandum of Discussion (informal).

(2) For the second time within a six (6) month period, a Letter of Reprimand (formal).

(3) For any subsequent time within a six (6) month period, suspension from work; or at any time four (4) or more
incidents occur within a six (6) month period, the employee may be discharged (formal).

(e) Verification Procedures

(1) Before being paid for the use of accrued sick leave, the employee shall submit a request for sick leave form, stating the dates and hours of absence and, the type of sick leave being requested such as sick leave for self, family member and/or FMLA.

(2) Doctor's Certificate or Other Proof . The Director of Human Resources may require a doctor’s certificate or other reasonable proof of illness as he/she deems 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 she 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 m onitor and control the appropriate use Attachment A
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of sick leave by employees and if reasonable cause is articulated, can limit use of sick leave and require additional verification.

The employee has the right to Union representation at such meeting. After such meeting, and depending on the factual circumstances, the City may:

(a) Place the employee on restricted sick leave for a period of not more than four (4) months, under the direction of the Director of Human Resources pursuant to (e)(2) above;

(b) Suspend the employee without pay for up to five (5) days for abuse of sick leave; or dismissal from employment if a prior suspension involved abuse of sick leave;

(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 . Effective February 17, 2012, all accumulated or future of Sick leave accruals 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.

(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 Attachment A
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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;

(3) Separation after July 1, 2015, payment of unused sick leave which the employee held on February 16, 2012, shall be paid at fifty (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.

98.3 Other Leaves with Pay

(a) Bereavement Leave. In the event of a death of anin the immediate family member, theof an employee will be, the employee shall, upon request, be granted up to three five (35) days bereavement leave with pay without charge to their accumulated sick leave or annual leave. The City provides paid bereavement leave for the first three (3) days. The employee may use any other paid leave for the remainingshall, 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 Iimmediate family isshall be restricted to the employee’s parents, spouse, motherparent-in-law, father-in-law, child, stepchild, sibling, brother, sister, brother-in-law, sister-in-law, grandparent, grandparent-in-law, grandchild, and registered domestic partner.

In the event of the death of a person that is not an immediate family member not immediately related to an employee as defined above, the employee's department head may grant up to three (3) days of unpaid bereavement leave., upon request, which shall be charged against Tthe employee's must use accumulated sick leave or annual vacation leave. 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) Jury Duty Leave

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When an employee is summoned to jury duty, they will promptly inform their supervisor and, if required to serve, may be absent from work without loss of wages or use of accrued leave while rendering such service (including travel time). Upon being excused from the court each day, the employee must return to work if they have more than four (4) hours remaining before the end of their workday.

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 author ity, in accordance with the following provisions:

Said 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 th e 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 his usual morning 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.

Attachment A
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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.

98.4 Workers' Compensation Leave

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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.

98.5 Leave of Absence Without Pay

Leave of absence are subject to eligibility in accordance with state and federal guidelines. The granting of a leave of absence provides the employee the right to return to the position vacated.

(c) All 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 the state and federal guidelines may be taken without pay for illness following the exhaustion of entitlement of sick, vacation, and other accrued leaves hours.

98.6 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 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.

Attachment A
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Section 109. Days and Hours of Work
109.1 Workweek

The normal workweek in this unit consists of five (5) consecutive eight (8) hour days or a total of forty (40) hours, generally Monday through Friday in a seven (7) day work period. Where operational requirements of a department require deviations from thi s schedule, the department head with the Director of Human Resources’ approval may institute alternate work schedules as long as the City meets with the Union over the impact of such schedules and conforms to work period requirements of the FLSA.

109.2 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. Employees who exceed the time limits prescribed above for lunch and/or rest periods shall have their pay reduced accordingly.

(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.

109.3 Reporting to Work

Repeated failure to report to work on time may result in appropriate informal and/or formal discipline as set forth below:

(a) For the first time in a six (6) month period, a Memorandum of Discussion (informal).

(b) For the second time within a six (6) month period, a Letter of Reprimand (formal).

(c) For any subsequent time within a six (6) month period, suspension from work; or at any time four (4) or more incidents occur within a six (6) month period, the employees may be discharged (formal).

Attachment A
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The six (6) month period will be defined as six (6) months from the most recent incident. If no other incident occurs within six (6) months of the most recent incident, the formal disciplinary action (i.e., letter of reprimand, suspension) shall be removed from the employee’s official personnel file maintained in the Human Resources Department, upon the written request of the employee to and concurrence by the department head and the Director of Human Resources.

Section 1110. Overtime
1110.1 Overtime Authorization

All compensable overtime must 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.

1110.2 Definition

The following provisions pertaining to authorized 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 seven (7) day FLSA workweek. Such overtime shall be paid for at time one and one-half (1-1/2) times the employee’s regular rate of pay. 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, vacation, and sick leave hours aretaken shall be considered as time worked for overtime calculation purposes. Vacation, or other compensated time off shall not be considered as actual time worked.

Notwithstanding subparagraph “a” above, effective September 1, 2024, and continuing for a period of twelve (12) months, vacation leave taken within the work period shall also count as actual time worked. The parties agree that the cost value of this modification is approximately zero point two percent (0.2%) of salary for the bargaining unit and is funded by the delay in the 2023 COLA. This pi lot program will sunset at the end of twelve (12) months. However, during the pilot program, the parties agree to evaluate the economic and operational impacts of this change and will negotiate over modifications to or continuation of this structure as part of successor contract negotiations.

(b) On a holiday observed by the City an employee who are not regularly Attachment A
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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) (b) The City may require mandatory overtime when operational needs exist and if the City dictate s 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 1110.5(b).

(c)d) Temporary Upgrade Pay. Employees 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.

1110.3 Standby DutyPay

When warranted and in the interest of City operation, department heads 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 within forty -five (45) minutes. Employees assigned to standby shall be required to carry the communication device.

(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) hour blocks, i.e., Monday - Friday work week standby can be eight (8), sixteen (16), twenty-four (24) hour blocks. The block of standby will be to one (1) person per twenty-four 24 hour period.

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

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

(1) Effective May 1, 2024, Eemployees assigned to standby duty shall be paid four dollars ($4.00) 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 workedin “paid status because of work performed” for purposes of calculating overtime.

1110.4 Call-Back

Employees who are called back to physically return to work from off duty status, shall be compensated for a minimum of two (2) hours and forty -five (45) minutes of 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, employees who are contacted and who provide remote support via telephone, internet, or network connection will be paid time 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, both 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.

1110.5 Compensatory Time Off (CTO)

(a) Definition. As used in this Section, the term C TOompensatory 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.

Attachment A
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(b) Accrual. For hours worked in excess of forty (40) hours in a seven (7) day work period as defined in section 1110.2(a), Compensatory Time may be earned at the rate of time and one-half (1-1/2). No more than eighty (80) hours (forty (40) hours worked at time and one-half (1-1/2) may be carried on the books at any time.

(c) Use. Use of C TOompensatory Time shall be scheduled with due consideration for the wishes of the employee and so as to not interfere with the normal operation of City business. Approval of requests for use of CTOompensatory Time shall be submitted in writing and in advance of use on a day-for-day basis and shall be at the sole discretion of the department head, but once approved, cannot be changed unless an emergency situation arises.

(d) Payment. Once eighty (80) hours of C TOompensatory 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 employee’s regular rate of pay.

At the end of each calendar year, all C TOompensatory Time -off (CTO) will be carried forward (forty (40) hours maximum), unless the employee elects to have the compensatory balance paid. Carryover CTOompensatory Time cannot exceed the forty (40) hours maximum.

1110.6 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 fifteen 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 1211. Holidays
1211.1 Qualifying for Holiday Pay

All regular status employees, excluding provisional , temporary, and part -time employees, shall be entitled to take all authorized holidays 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 a 9-hour work day or 8 hours on an 8-hour day on the 9/80 schedule).

1211.2 Holidays Observed by the City

Attachment A
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Effective 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, Tthe City observes the following holidays on the dates indicated:

(1) January 1……... ...................................................................... New Years' Day (2) Third Monday in January ................................Martin Luther King Jr.'s Birthday (3) Second Monday in February ............................................... Lincoln's Birthday (4) Third Monday in February ............................................ Washington's Birthday (5) March 31 .....................................................................Cesar Chavez Birthday (65) Last Monday in May ................................................................. Memorial Day (76) July 4 ................................................................................ Independence Day (87) First Monday in September ............................................................ Labor Day (98) Second Monday in October ..................... Indigenous PeoplesColumbus Day (109) November 11 ......................................................................... Veteran's Day (1110) Fourth Thursday in November ................................................ Thanksgiving (1211) The day following the day known as Thanksgiving
(1312) December 25 ........................................................................ Christmas Day (14) Birthday Holiday

For positions that observe holidays, employees accrue floating holiday hours equivalent to two (2) workdays annually on the first full pay period to a maximum of two (2) workdays. Floating holiday must be utilized in full day increments. Upon separation, unused floating holiday hours will be paid out at the employee’s current straight time rate of pay. If any of said holidays fall on a Sunday, the following Monday shall be observed as a holiday. If any of said holidays fall on a Saturday, the preceding Friday shall be observed as a holiday.

In order to receive Holiday Pay the employee must be in a paid status the day before and the day after the holiday.

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 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. 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).

Attachment A
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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. 1211.3 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 1312. Compensation and Allowance Other Than Base Salary

13.1 12.1 Retirement Contribution Supplement
Tier 1 – For Employees Hired before December 29, 2012
Employees hired before December 29, 2012, receive the 2% at 55 CalPERS formula with the one (1) year final average compensation period. These employees pay the required seven percent (7.0%) member contribution, on a pre-tax basis.

These employees receive the following optional CalPERS retirement benefits:
• Section 21024 Military Service Credit as Public Service • Section 21027 Military Service Credit for Retired Persons • Section 20965 Credit for Unused Sick Leave
• Section 21574 Fourth Level of 1959 Survivor Benefits
• Section 21335 5% Annual Cost of Living Allowance Increase Tier 2 – For Employees Hired after December 28, 2012
Employees hired after December 28, 2012, who are not classified as a new member receive the 2% at 60 CalPERS formula with the three (3) year final average compensation period. These employees pay the required seven percent (7.0%) member contribution, on a pre-tax basis.

These employees receive the following optional CalPERS retirement benefits:
• Section 21574 Fourth Level of 1959 Survivor Benefits
• 2% Annual Cost of Living Allowance Increase
Tier 3 PEPRA – For Employees Hired after December 31, 2012 Employees hired after December 31, 2012, who are classified as a “Classic” member receive the 2% at 62 CalPERS formula with the three (3) year final Attachment A
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average compensation period. These employees pay one -half of the total normal cost as determined annually by CalPERS on a pre-tax basis.

These employees receive the following optional CalPERS retirement benefits:
• Section 21574 Fourth Level of 1959 Survivor Benefits
• 2% Annual Cost of Living Allowance Increase
(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 Public Employees’ Retirement System (CalPERS). Such amounts will be applied to the employee's individual account in accordance with California Government Code section 20691.

Effective August 1, 2011, employees hired on or before December 28, 2012 shall pay seven percent (7%) of the employee’s current base salary and other compensation as qualified by state law towards the employer contribution to the CalPERS retirement plan on a post -tax basis in the form of a payroll deduction. The City will seek an IRS private letter ruling to determine whether or not the IRS permits the employee’s contribution to the employer’s share of pension cost to be treated on a pre -tax basis. If the IRS issues a private letter ruling allowing employee’s contribution towards employer pension cost on a pre-tax basis, the City will change the deduction from post -tax to pre -tax as soon as administratively possible after the IRS final determination. (b) For Employees Hired on or Before December 28, 2012
(1) The City's CalPERS retirement plan is modified to reflect two percent (2%) at age fifty-five (55), effective January 1993.
(2) The City's CalPERS 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 CalPERS.
(3) The City will provide CalPERS California Government Code section 20692 (Employer Paid Member Contributions Converted to Payrate during the Final Compensation Period) as added CalPERS benefits.

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 seven percent (7%) Attachment A
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for the last twelve (12) months of employment. Internal Revenue Service (IRS) Code 414H (2) will be concurrently implemented with CalPERS California Government Code section 20692, to be effective upon adoption by the Stockton City Council and CalPERS
Administration Board.
(4) The City will provide CalPERS California Government Code section 20965 (Credit for Unused Sick Leave) as added CalPERS benefits, to be effective upon adoption by the Stockton City Council and CalPERS Administration Board. Any unused sick leave may be credited towards CALPERS service credit.
(5) The City will provide CalPERS California Government Code section 21574 (Fourth Level of 1959 Survivor Benefits) as added CalPERS benefits, to be effective upon adoption by the Stockton City Council and CalPERS Administration Board.
(6) The City will provide CalPERS California Government Code section 21335 up to a five percent (5%) Annual Cost-of-Living Allowance, as an added CalPERS benefit. The first application date is April 1, 2003. (c) For Employees Hired on or After December 29, 2012
(1) The City amended its contract with CalPERS effective December 28, 2012 to provide a new second tier retirement program of two percent (2%) at sixty (60) with three (3) year average salary formula and no other additional CalPERS benefits for all unit employees hired on or after December 29, 2012. Employees 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 CalPERS retirement benefit through a payroll deduction.
(d) PERS Benefits for Employees hired on or after December 29, 2012 (1) Employees with Reciprocity:

Employees hired on or after December 29, 2012, who had service under another CalPERS agency or public retirement system with reciprocity prior to January 1, 2013, and a break in service of less than 6 months and are considered classic employees by PERS AB 340, shall be subject to the PERS pension formula of two percent ( 2%) at sixty (60) with no optional pension enhancements and the other provisions of the retirement tier they were hired under. Employees shall pay the entire seven (7%) of the employee’s current base salary (as the employee contribution) and any Attachment A
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other compensation as qualified by state law towards CalPERS retirement benefit through a payroll deduction.
(2) Employees without Reciprocity:

Employees hired on or after January 1, 2013, shall be subject to the AB340 PERS pension formula of two ( 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 normal cost rate for the two (2%) at sixty-two (62) as determined by CalPERS. 1312.2 Deferred Compensation

Effective July 1, 2010, the City’s contribution to the Deferred Compensation Plan (5.5% of base pay) will be converted to base pay. Effective July 1, 2010, employees will no longer receive a deferred compensation benefit.

1312.3 Uniforms

(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

Effective July 1, 2024, for employees Employees required to wear safety protective footwear in accordance with the City Manager’s Administrative Directive HR -034, and approved for safety protective footwear reimbursement, the City will authorize safety protective footwear reimbursement in the amount of two three hundred and fifty dollars ($250.00$300.00) as needed and approved by the employee’s supervisor and department head. Employees shall be allowed to use any unused funds towards the purchase of (1) insoles and socks and/or (2) an additional pair of safety protective footwear. Unless approved otherwise, employees are limited to a total of $300.00 per fiscal year for safety protective footwear.

1312.4 Tool Allowance

(a) Effective July 1, 2024, Mechanic employees assigned to the Central Garage who are required to personally supply their own set of mechanic hand tools, as required and approved by the Fleet Manager, shall receive an annual tool replacement allowance of eight hundred dollars ($800.00).

(b) The City shall pay for the replacement of tools lost through theft from City Attachment A
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premises provided that such loss was absolutely no fault of the employee.

1312.5 Special Driver's License Pay

Job classifications that require employees to possess and maintain a Class A and/or Class B Driver's License will receive special pay based on the flat dollar amount 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.

1312.6 Longevity Pay

Effective August 1, 2011, longevity pay was eliminated. However, the City grandfathered only those employees who completed twelve (12) continuous years of service with the City as of Employees hired before July 31, 2012 , who by July 31, 2012, attained twelve (12) years of continuous employment with the City receive Longevity Pay in the amount of one and one half percent (1.5%) of the top salary step of the employee’s pay range as of July 1, 2010. longevity pay based on the flat dollar amount equal to two and one -half percent (2.5%) of top salary step of the employee’s pay range as of July 1, 2010. As of July 1, 2012, longevity incentive pay allowance for these grandfathered employees was reduced to one and one-half percent (1.5%).

1312.7 Credit Union

1312.8 Crane Operator Add Pay

At the Department Head’s discretion and approval, Traffic Signal Electricians, Tree Surgeon, Maintenance Repair Technician and Craft Maintenance Workers who obtain and maintain a crane operator certificate will receive $0.30 per houran add pay. The number of total combined employees eligible to receive the add pay for all series listed below shall not exceed as follows:

Job Classification Series Total Eligible in Crane Operator Add Pay Attachment A
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Series
Traffic Signal Electrician 4 $0.301.75 per hour
Tree Surgeon 2 $0.30 per hour
Craft Maintenance Worker 1 $0.30 per hour
Maintenance Repair Technician 1 $0.30 per hour

Section 1413. Insurance Plans and Retirement Benefits
1413.0 Reopener Clause for Health Insurance

(a) The Association 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 T&M 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.

1413.1 Health and Welfare Benefits

(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 Kaiser 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 their dependent cannot be covered by more than one (1) City- offered health plan).

Attachment A
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• 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 plan coverage.

3)1) Effective July 1, 2025,The City shall will contribute the following:

• Up to $ 936.10740.00 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

• Up to $1,698.551,342.00 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

• Up to $2,263.201,788.00 per month toward the cost of the monthly premium for employee plus two (2) or more dependents
medical/dental/vision plan coverage.

2) Effective January 1, 2027, the City contributes the following:

• Up to $973.54 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

Attachment A
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• Up to $1,766.49 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

• Up to $2,353.73 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

3) Effective January 1, 2028, the City contributes the following:

• Up to $993.01 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

• Up to $1,801.82 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

• Up to $2,400.80 per month toward the cost of the monthly premium for employee plus two (2) or more dependents medical/dental/vision plan coverage.

4) Effective January 1, 2029, the City contributes the following:

• Up to $1,012.88 per month toward the cost of the monthly premium for employee-only medical/dental/vision plan coverage.

• Up to $1,837.86 per month toward the cost of the monthly premium for employee plus one (1) dependent medical/dental/vision plan coverage.

• Up to $2,448.82 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; 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 Attachment A
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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 Trades and Maintenance 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 administrative overhead for 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 the City and the plan participants. 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 for the Operating Engineer sponsored plans offered to employees those City administrative overhead costs associated with these plans in addition to the City sponsored plans and will be updated each plan year.

1413.2 Long Term Disability Insurance

The City shall will provide, at no cost to the employee, long term disability insurance coverage. Plan benefits shall will be as described in the Plan document, but shall will 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 will continue its normal contribution for employee medical premiums during the ninety (90) day waiting period.

1413.3 State Disability Insurance (SDI)
At the Union’s option, pursuant to procedures established by the state, members may elect to Employees receive State Disability Insurance (SDI) coverage at their own expense. SDI will be coordinated with other benefits.

Attachment A
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1413.4 Life Insurance

The City shall provides, each employee group term at no cost to the employee, term life insurance policy with a value in the amount of fifty thousand dollars ($50,000). In addition, employees can shall have the opportunity to purchase additional voluntary life through their union or through the City’s IRS125 vendor.

Section 1514. Salaries
1514.1 Salary

All salaries hereby established and explained in other parts of section 15 shall no longer be fitted to the Stockton Salary Matrix as set forth in the City of Stockton Salary Schedule.

Instead, all salary steps hereby established and explained in other par ts of section 15 shall be assigned a fixed percentage of 5.14% between salary steps, and any salary ranges established on or after October 1, 2008, shall be assigned a fixed percentage of five percent (5%) between salary steps.

The salary for each job classification, as set forth in the City of Stockton Salary Schedule the standard rate of pay for full time employment, unless the schedule specifically indicates otherwise.

The salary as set forth in the City of Stockton Salary Schedule do not include reimbursement for actual and necessary expenses for traveling, subsistence and general expenses authorized and incurred incident to City employment.

Salary Adjustments:

a) Effective May 1, 2024, employees will receive a n eight percent (8%) cost of living adjustment (COLA) to base pay.

b) Effective July 1, 202 4, employees will receive a zero percent (0%) COLA to base pay.

c) Effective July 1, 202 5, employees will receive a three percent (3 %) COLA to base pay.

d) Lump Sum Payment.

a) 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 (subject to all applicable withholdings) to be paid by the second scheduled payday in the same month.

Attachment A
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b) Each employee who is employed in the bargaining unit as of July 1, 2025 will receive a two thousand ($2,000) lump sum non -pensionable bonus (subject to all applicable withholding) to be paid by the second scheduled payday in the same month.
a) Effective September 20, 2026, or the pay period following City Council approval, whichever is later, employees will receive a two percent (2%) Cost of Living Adjustment (COLA) increase to base pay (Attached is the revised salary schedule including the 2% COLA plus market adjustment).

b) Effective the first full pay period starting June 27, 2027, employees will receive a two percent (2%) Cost of Living Adjustment (COLA) increase to base pay.

c) Effective the first full pay period starting June 25, 2028, employees will receive a two percent (2%) Cost of Living Adjustment (COLA) increase to base pay.

14.2 Additional Steps

The salary ranges for all classifications is set forth in the City’s Salary Schedule.

Effective September 20, 2026, or the pay period following City Council approval, whichever is later, the City shall add three additional steps at two and a half percent (2.5%) each step for most positions. Consistent with the City practice, progression in the additional steps will require one year of paid status within the step prior, (i.e. progression to Step 7 requires 1 year of service in Step 6 and progression to Step 8 requires 1 year of service in Step 7).

15.214.3 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 and level 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 and level to which an employee is appointed. Such salary may not be more than the maximum salary for the class a nd level to which that employee is appointed.

15.314.4 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 Director of Human Attachment A
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Resources or 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.

15.414.5 Salary Step Plan

(a) The first salary step shall beis the minimum salary rate and shall be the normal hiring salary rate for the class. In a case where a person possesses unusual qualifications, the Director of Human Resources may authorize appointment above the first salary step after receiving the recommen dation of the department head.

The same provision shall apply to hourly paid and part-time employees.

The second salary step shall be paid upon the satisfactory completion of six (6) months service at the first salary step upon the written recommendation of the department head.

Subsequent salary steps shall be paid upon the satisfactory completion of one (1) year service at the preceding salary step of the job classification and upon the recommendation of the department head.

Regardless of an employee's length of service, step advance ments in any given class may be made upon recommendation of the department head with the approval of the Director of Human Resources.

Salary step increases shallwill 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.

(b) If a department head recommends withholding salary step increases 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 abide by the 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 anniversary date, the increase shall be automatically granted.

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

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

15.514.6 Salary Step after Military Leave

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

15.614.7 Salary Step When Salary Range is Increased

15.714.8 Salary Step After Promotion or Demotion

(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." Attachment A
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15.814.9 Transfer

An employee may be transferred from a class in one department, or to a position of the same class in another department, 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 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 completion of pertinent tes t, that he/she is qualified for the transfer. If the transfer involves a change from the jurisdiction of one appointing authority to another, both must consent thereto.

15.914.10 Salary on Reinstatement

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 position 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.

15.1014.11 "Y" Rate

15.1114.12 Acting Pay

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overtime status will commence at the first hour worked.

(c) If there is no existing list, acting pay selection shall be made from the five (5) most qualified employees in the section.

(1) Sections are defined, for the purpose of this clause only, as the sub-groups listed under the following department:

Public Works Department - (1) Street Maintenance, (2) Traffic Devices, (3) Electrical/Traffic Signals, (4) Fleet, (5) Facilities Maintenance, (6) Community Enhancement, (7) Parks, and (8) Trees.

(2) Qualifications for the purpose of this section, as determined by the department head or designee, shall include all the following equal factors:

(a) Seniority in grade within any class immediately below the vacant position.

(b) Worker experience relative to the vacant position.

(d) Certificates or other formal qualification devices such as eligibility lists.

If all things are equal based on above factors, the seniority within the City shall be considered.

(3) The opportunity for acting pay shall be rotated among the five (5) most qualified employees within each section.

(d) Assignments from other than a promotional eligibility list shall not exceed one-hundred and twenty (120) days per fiscal year per employee.

15.1214.13 Special Assignment Pay
Attachment A
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Any employee assigned to the Tree Spray Crew shall receive an additional five percent (5%) special assignment pay per day when assigned in writing by the supervisor to spray trees and performs such work four (4) or more hours in any one (1) day.

15.1314.14 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.

15.14 Bi-Weekly Pay Period

The City and the Association 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.

15.15 One Time Payment

Effective May 1, 2024, the City will make a one-time payment in the amount of five thousand dollars ($5,000.00), subject to applicable withholdings, to Trades and Maintenance 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.

15.16 Salary Survey
Upon request of the T&M, but no later than September 1, 2024, the parties agree to discuss (1) Salary Survey Juris dictions and (2) Salary Survey Elements to be utilized by both parties during the next round of negotiations for the successor MOU. The parties endeavor to complete this process by the start of the next round of MOU negotiations. In the event parties do not reach a consensus on the jurisdictions and elements, the parties would be able to perform their own surveys during the next round of MOU negotiations.

Attachment A
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Section 1615. Severability of Provisions
If n 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.

This MOU shall supersede all exist ing Memoranda of Understanding and side letters between the City and the Union.

Section 1817. Scope of Agreement
Except as otherwise specifically provided herein this MOU 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 1918. Duration of Agreement
All provisions of t This MOU shall be effective the date of execution, unless otherwise indicated and shall remain in full force and effect to and including the 30th day of June, 20269 and shall continue thereafter from year to year unless at least sixty (60) days prior to July 1 either party shall file written notice with the other of its desire to amend, modify, or terminate this MOU.

Section 2019. Maintenance of Operations/City Rights
(a) It is recognized that the need for continued and uninterrupted operation of City services is of paramount importance. T herefore, 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 Ordinance, the Union or any person acting in its behalf, or each employee in a classification represented by the Union, shall will not cause, authorize, engage in, encour- age, or sanction a strike, unfair labor practice strike, or sympathy strike, work stoppage, Attachment A
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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.

(bd) 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.

City Council and Concurrent AuthoritiesSeptember 15, 2026

City Council and Concurrent Authorities
September 15, 2026