Agenda — Tracy City Council, June 24, 2022 (part 2 of 2)

AGENDA ITEM 1.F

REQUEST

ADOPT A RESOLUTION APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH ALL CITY MANAGEMENT SERVICES, INC. FOR SCHOOL PEDESTRIAN CROSSING GUARD SERVICES IN A TOTAL AMOUNT NOT TO EXCEED $1,731,744

FOR A TERM OF THREE YEARS AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AGREEMENT

EXECUTIVE SUMMAR
Y
This agreement wi
ll provide school pedestrian crossing guard services to 28 sites within the Tracy Unified School District and Jefferson School District.

DISCUSSION
The City has cont
racted with All City Management Services, Inc. to provide crossing guard services since 1995. The contract with All City Management Services, Inc. was renewed and amended in 2005, 2008, 2014, 2018, and 2019. The Tracy Police Department has negotiated a three year contract with All City Management Services, Inc. to provide crossing guard services from July 1, 2022 to June 30, 2025.

On April 29, 2022
, the Tracy Police Department published a Request for Proposals on the City of Tracy website. Additional research was done to identify potential alternative vendors. Only two agencies providing crossing guard services to the Tracy area were identified: All City Management Services, Inc. and World Private Security, Inc. Both vendors were contacted and notified of the published Request for Proposals. On April 29, 2022, the City received proposals from both of these vendors.

All City
Management Services, Inc. was determined to be the most responsive to the City’s needs. Their service has consistently met the standards set by the City and their fees, although significantly higher this proposed term, have remained consistently less than other proposals and have kept pace with California minimum wage increases.

Under the Prof
essional Services Agreement, All City Management Services, Inc. will provide crossing guard services to 28 sites within the Jefferson Unified School District and Tracy Unified School District, 3.0 hours daily, for 180 school days annually. The contract provides for 20,160 hours annually. Due to split shifts, California Labor Law requires an extra hour of pay each working day. All City Management Services, Inc. will provide all recruitment, background clearance, hiring, training, equipment, payroll, supervision, and management of the crossing guard program. The program is $561,658 in the first year ($27.86 hourly wage), $585,043 ($29.02 hourly wage) for second year, and $585,043 ($29.02 hourly wage) for the third year of the contract. The City’s obligation for the overall cost is a 50% shared cost with school districts.

FISCAL IMPACT
School pedestrian
crossing guard services is a contracted service funded in each fiscal year budget. The Police Department’s operational budget combined with the 50% June 24, 2022
Agenda Item 1.F
June 24, 2022

Page 2 ends

($865,872) shared costs from The Tracy Unified School District and the Jefferson School District
will support the proposed contract cost of not to exceed $1,731,744.

STRATEGIC PLAN
This agenda item rel
ates to the Council’s Strategic Priorities for Public Safety.

RECOMMENDATIO
N
Staff recomm
ends that the City Council adopt a resolution approving a professional services agreement to All City Management Services, Inc. for school pedestrian crossing guard services in a total amount not to exceed $1,731,744 for a term of three years and authorizing the City Manager to execute the agreement.

Prepared by: B
eth Lyons-McCarthy, Support Operations Manager
Reviewed by: Sekou
Millington, Chief of Police
Karin Schnaider, Finance Director
Midori Lichtwardt, Assistant City Manager
Approved by: Mic
hael Rogers, City Manager
Attachments
Attachment A - Professional Services Agreement with All City Management Services, Inc.

City of Tracy - Professional Services Agreement with All City Management Services, Inc.

CITY OF TRACY

PROFESSIONAL SERVICES AGREEMENT WITH
All City Management Services, Inc.

This Professional Services Agreement (Agreement) is entered into between the City of Tracy, a municipal corporation (City), and All City Management Services, Inc., a sole California Corporation Consultant). City and Consultant are referred to individually as "Party" and collectively as "Parties." Recitals
A. On April 29, 2022, the City obtained formal requests for proposals from two prospective Consultants to provide School Pedestrian Crossing Guard Services for the City of Tracy. All City Management Services submitted its proposal to perform the services described by this Agreement.

B. After negotiations between City and Consultant, the parties have reached an agreement for the performance of services in accordance with the terms set forth in this Agreement.

C. On June 24, 2022, the City Council authorized the execution of this Agreement, pursuant to Resolution No. 2022----
Now therefore, the Parties mutually agree as follows:

1. Scope of Work. Consultant shall perform the services described in Exhibit "A" attached and incorporated by reference. The services shall be performed by All City Management Services, Inc.

Consultant shall not use or replace any subcontractor or subconsultant without City's prior written consent. A failure to obtain the City's prior written consent for any change or replacement in personnel or subcontractor/subconsultant may result in the termination of this Agreement.

2. Time of Performance. Time is of the essence in the performance of services under this Agreement and the timing requirements set forth shall be strictly adhered to unless otherwise modified in writing in accordance with this Agreement. Any services for which times for performance are not specified in this Agreement shall be started and completed by Consultant in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the Consultant.

Consultant shall submit all requests for time extensions to the City in writing no later than ten days after the start of the condition which purportedly caused the delay, and not later than the date on which performance is due. City shall grant or deny such requests at its sole discretion.

2.1 Term. The term of this Agreement shall begin on July 1, 2022 and end on June 30, 2025, unless terminated in accordance with Section 6. This Agreement may be extended for an additional (1) one year by the City Manager following a written determination that Consultant has satisfactorily met all the requirements of this Agreement

3. Compensation. City shall pay Consultant on a time and expense basis, at the billing rates set forth in Exhibit "A," attached and incorporated by reference for services performed under this Agreement.

3.1 Not to Exceed Amount. Consultant's total compensation under this Agreement shall not exceed $1,731,744. Consultant's billing rates shall cover all costs and expenses for Consultant's
performance of this Agreement. No work shall be performed by Consultant in excess of the total compensation amount provided in this section without the City's prior written approval.

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ATTACHMENT A
City of Tracy -- Professional Services Agreement with All City Management Services, Inc.

3.2 Invoices. Consultant shall submit bi-weekly invoices to the City describing the services performed, including school site location, designated school days, times, and names of persons performing the service.

3.2.1 If Consultant is providing services in response to a development application, separate invoice(s) must be issued for each application and each invoice shall contain the City's designated development application number.

3.2.2 Consultant's failure to submit invoice(s) in accordance with these requirements may result in the City rejecting said invoice(s) and thereby delaying payment to Consultant.

3.3 Payment. Within 30 days after the City's receipt of invoice(s), City shall make payment to the Consultant based upon the services described on the invoice(s) and approved by the City.

4. Indemnification. Consultant shall, to the fullest
extent permitted by law, indemnify, defend
(with independent counsel approved by the City), and hold harmless the City from and against any claims arising out of Consultant's performance or failure to comply with obligations under this Agreement, except to the extent caused by the sole, active negligence or willful misconduct of the City.

In this section, "City" means the City, its officials, officers, agents, employees and volunteers; "Consultant" means the Consultant, its employees, agents and subcontractors; "Claims" includes claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all related costs and expenses) and any allegations of these; and "Arising out of' includes "pertaining to" and "relating to".
(The duty of a "design professional" to indemnify and defend the City is limited to claims that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of the design professional, under Civ. Code§ 2782.8.)
The provisions of this section survive completion of the services or the termination of this Agreement, and are not limited by the provisions of Section 5 relating to insurance.

5. Insurance. Consultant shall, throughout the duration of this Agreement, maintain insurance to cover Consultant, its agents, representatives, and employees in connection with the performance of services under this Agreement at the minimum levels set forth herein.

5.1 Commercial General Liability (with coverage at
least as broad as ISO form CG 00 01
01 96) "per occurrence" coverage shall be maintained in an amount not less than $4,000,000 general aggregate and $2,000,000 per occurrence for general liability, bodily injury, personal injury, and property damage.

5.2 Automobile Liability (with coverage at least as broad as ISO form CA 00 01 07 97, for "any auto") "claims made" coverage shall be maintained in an amount not less than $1,000,000 per accident for bodily injury and property damage.

5.3 Workers' Compensation coverage
shall be maintained as required by the State of
California.

5.4 Endorsements. Consultant shall obtain endorsements to the automobile and commercial general
liability insurance
policies with the following provisions:

5.4.1 The City (including its elected officials, officers, employees, agents, and volunteers) shall be named as an additional "insured."

5.4.2 For any claims related to this Agreement, Consultant's coverage shall be primary insurance with respect to the City. Any insurance maintained by the City shall be excess of the Consultant's insurance and shall not contribute with it.

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City of Tracy - Professional Services Agreement with All City Management Services, Inc.

5.5 Notice of Cancellation. Consultant shall notify the City if the policy is canceled before the expiration date. For the purpose of this notice requirement, any material change in the policy prior to the expiration shall be considered a cancellation. Consultant shall immediately obtain a replacement policy.

5.6 Authorized Insurers. All insurance companies providing coverage to Consultant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California.

5. 7 Insurance Certificate. Consultant shall provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance and endorsements, in a form satisfactory to the City, before the City signs this Agreement.

5.8 Substitute Certificates. Consultant shall provide a substitute certificate of insurance no later than 30 days prior to the policy expiration date of any insurance policy required by this Agreement.

5.9 Consultant's Obligation. Maintenance of insurance by the Consultant as specified in this Agreement shall in no way be interpreted as relieving the Consultant of any responsibility whatsoever (including indemnity obligations under this Agreement), and the Consultant may carry, at its own expense, such additional insurance as it deems necessary. Failure to provide or maintain any insurance policies or endorsements required herein may result in the City terminating this Agreement.

6. Termination. Either party may terminate this Agreement by giving thirty days' written notice to the other party prior
to the final date of Consultant providing service. The Consultant's final day of services under this Agreement shall fall upon the last day of the month. City shall pay Consultant for all services satisfactorily performed in accordance with this Agreement through the final date of service, within 30 days of receipt of a final invoice from Consultant.

7. Dispute Resolution. If any dispute arises between the City and Consultant that cannot be settled after engaging in good faith negotiations, City and Consultant agree to resolve the dispute in accordance with the following:

7.1 Each Party shall designate a senior management or executive level representative to negotiate the dispute;

7.2 The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority.

7.3 If the issue remains unresolved after fifteen (15) days of good faith negotiations, the Parties shall attempt to resolve the disagreement by negotiations between legal counsel. If the aforementioned process fails, the Parties shall resolve any remaining disputes through mediation to expedite the resolution of the dispute.

7.4 The mediation process shall provide for the selection within fifteen (15) days by both Parties of a disinterested third person as mediator, shall be commenced within thirty (30) days and shall be concluded within fifteen (15) days from the commencement of the mediation. 7 .5 The Parties shall equally bear the costs of any third party in any alternative dispute resolution process.

7.6 The dispute resolution process is a material condition to this Agreement and must be exhausted prior to either Party initiating legal action. This dispute resolution process is not intended to nor shall be construed to change the time periods for filing a claim or action specified by Government Code §§ 900 et seq.

8. Ownership of Work. All work, reports, designs, content, and any other work product of Consultant are deemed intellectual property or are licensed for use by Consultant and shall be retained by Consultant as such. Any extension or authorization of use, licensing, or other transfer of said intellectual property or licensing to City is subject to separate agreement and additional fees.

Page 3 ends

City of Tracy -- Professional Services Agreement with All City Management Services, Inc.

9. Independent Contractor Status. Consultant is an independent contractor and is solely responsible for the acts of its employees or agents, including any negligent acts or omissions.

Consultant is not City's employee and Consultant shall have no authority, express or implied, to act on behalf of the City as an agent, or to bind the City to any obligation, unless the City provides prior written authorization. Consultant is free to work for other entities while under contract with the City.

Consultant, and its agents or employees, are not entitled to City benefits.

10. Conflicts of Interest. Consultant (including its employees, agents, and subconsultants) shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. If Consultant maintains or acquires such a conflicting interest, the City may terminate any contract (including this Agreement) involving Consultant's conflicting interest.

11. Rebates, Kickbacks, or Other Unlawful Consideration. Consultant warrants that this Agreement was not obtained or secured through rebates, kickbacks, or other unlawful consideration either promised or paid to any City official or employee. For breach of this warranty, City shall have the right, in its sole discretion, to terminate this Agreement without liability; to pay only for the value of the work actually performed; or to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.

12. Notices. All notices, demands, or other communications which this Agreement contemplates or authorizes shall be in writing and shall be personally delivered or mailed to the other party to the addresses listed below. Communications shall be deemed to have been given and received on the first to occur of: (1) actual receipt at the address designated below, or (2) three working days after the deposit in the United States Mail of registered or certified mail, sent to the address designated below.

To City:

Tracy Police Department
Attn: Accounts Payable
1000 Civic Center
Tracy, CA 95376
With a copy to:

City Attorney
333 Civic Center Plaza
Tracy, CA 95376

13. Miscellaneous.

To Consultant:

All City Management Services, Inc.

Director of Operations
10440 Pioneer Boulevard, Suite 5
Santa Fe Springs, CA 90670

13.1 Standard of Care. Unless otherwise specified in this Agreement, the standard of care applicable to Consultant's services will be the degree of skill and diligence ordinarily used by reputable professionals performing in the same or similar time and locality, and under the same or similar circumstances.

13.2 Amendments. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both Parties.

13.3 Waivers. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement.

13.4 Assignment and Delegation. Consultant may not assign, transfer or delegate this Agreement or any portion of it without the City's written consent. Any attempt to do so will be void.

City's consent to one assignment shall not be deemed to be a consent to any subsequent assignment.

Page 4 of 9 ends

City of Tracy -- Professional Services Agreement with All City Management Services, Inc.

13.5 Jurisdiction and Venue. The interpretation, validity, and enforcement of the Agreement shall be governed by and construed under the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of San Joaquin.

13.6 Compliance with the Law. Consultant shall comply with all applicable local, state, and federal laws, whether or not those laws are expressly stated in this Agreement.

13.6.1 Prevailing Wage Laws. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates; employment of apprentices(§ 1777.5), certified payroll records (§1776), hours of labor (§1813 and §1815), debarment of contractors and subcontractors (§1777.1) and the performance of other requirements on "public works" and "maintenance" projects. If the services being performed under this
Agreement are part of a "public works" or "maintenance" project, as defined in the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. These prevailing rates are on file with the City and are available online at http://www.dir.ca.gov/DLSR. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents, harmless from any and all claims, costs, penalties, or interests arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

13.6.2 Non-discrimination. Consultant represents and warrants that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age.

Consultant shall also comply with all applicable anti-discrimination federal and state laws, including but
not limited to, the California Fair Employment and Housing Act (Gov. Code 12990 (a-f) et seq.).

13.7 Business Entity Status. Consultant is responsible for filing all required documents and/or
forms with the California Secretary of State and meeting all requirements of the Franchise Tax Board, to the extent such requirements apply to Consultant. By entering into this Agreement, Consultant represents that it is not a suspended corporation. If Consultant is a suspended corporation at the time it enters this Agreement, City may take steps to have this Agreement declared voidable.

13.8 Business License. Before the City signs this Agreement, Consultant shall obtain a City of Tracy Business License. Consultant shall maintain an active City of Tracy Business License during the term of this Agreement.

13.9 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns.

13.10 Construction of Agreement. Each Party hereto has had an equivalent opportunity to participate in the drafting of this Agreement and/or to consult with legal counsel. Therefore, the usual construction of an agreement against the drafting Party shall not apply hereto.

13.11 Severability. If a term of this Agreement is held invalid by a court of competent jurisdiction, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in effect.

13.12 Controlling Provisions. In the case of any conflict between the terms of this Agreement and the Exhibits hereto, and Consultant's proposal (if any), the Agreement shall control. In the case of any conflict between the Exhibits hereto and the Consultant's proposal (if any), the Exhibits shall control.

13.13 Entire Agreement. This Agreement and the attached Exhibits comprise the entire integrated understanding between the Parties concerning the services to be performed. This Agreement supersedes all prior negotiations, representations or agreements. All exhibits attached hereto are incorporated by reference herein.

14. Signatures. The individuals executing this
Agreement on behalf of Consultant represent and
warrant that they have the right, power, legal capacity and authority to enter into and to execute this Agreement on behalf of Consultant.

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City of Tracy -- Professional Services Agreement with All City Management Services, Inc. [SIGNATURES ON FOLLOWING PAGE]

Page 6 of 9 ends

City of Tracy -- Professional Services Agreement with All City Management Services, Inc.

The Parties agree to the full performance of the terms set forth here.

City of Tracy
By: Michael Rogers
Title: City Manager
Date: __ ___ _ ____ _
Attest:

Adrianne Richardson, City Clerk
Approved as to form:

By: e etra Farwell
Title: Director, Admin ervices
Date: s\ \ \, \ 'Z. ""2-
By: Noel Concha YI� (!,_
Title: lnterinl Finance Director
Date: � \ � 12�
Federal Employer Tax ID No. 95-3971517
Bijal Pital, City Attorney
Exhibits:

Scope of work including personnel and time of performance - see agreement sections 1 and 2

Page 7 ends

B Compensation - see agreement section 3

City of Tracy -- Professional Services Agreement with All City Management Services, Inc.

Page 8 of 9 ends

EXHIBIT
A – Scope of Services
SCOPE OF SERVICES.

The City
of Tracy Pedestrian School Crossing Guard program, managed through the Police Department, currently requires twenty -eight (28) crossing guards deployed at twenty -eight (28) different locations within the City of Tracy limits. Each of these positions routinely requires staffing 1.5 hours during the morning and 1.5 hours during the afternoon. The exact hours and days per week are established through the individual school site calendars, which are available through the Tracy Unified School District and the Jefferson School District.

Crossing G
uard Personnel: Personnel provided by the CONSULTANT to function in the Crossing Guard capacity shall be of an adult age and trained by the laws and codes of the State of California and the City of Tracy pertaining to general pedestrian safety and school crossing areas. CONSULTANT shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. CONSULTANT shall further maintain adequate reserve personnel to be able to furnish alternate guards in the even that any person fails to report to work at the assigned time and location.

Service H
ours and Frequency: Services shall be provided by the CONSULTANT at the designated locations and hours on all days on which the designated schools in the City of Tracy are in session. CITY shall have the right to determine the hours and locations when and where crossing guard services shall be furnished by CONSULTANT. CITY further has the authority to add to, delete from, or revise the work schedule/locations at any time.

Supervisi
ng, Training and Scheduling: CONSULTANT shall train, schedule, provide, and supervise personnel in accordance with the professional services contract and the rules and regulations of the City of Tracy. CONSULTANT shall provide supervisor personnel to insure that crossing guard activities are taking place at the required places and times.

City of Tracy -- Professional Services Agreement with All City Management Services, Inc.

Page 9 of 9 ends

EXHIBIT

B - COMPENSATION
Cross
ing guard hourly rate has been determined to include compensation for individuals working split shifts in accordance with the State of California Labor Law requiring an additional hour of compensation at a minimum rate of pay.

The hourly
rate agreed upon includes a fully loaded rate, meaning all costs are included in the proposed hourly billing rate. The fully loaded rate included but is not limited to; recruitment, background, clearance, training, equipment, insurance, supervision, and management of the City of Tracy’s Crossing Guard Program.

The hourly
rate does not include additional safety equipment, crosswalk delineators, cones or safety devices. If additional equipment is desired, additional cost would be billed to CITY.

All
City Management Services will provide crossing guard services to 28 sites within the Jefferson Unified School District and Tracy Unified School District, 3.0 hours daily, for 180 school days annually. 20,160 hours are provided annually. The program is $561,658 in the first year ($27.86 hourly wage), $585,043 ($29.02 hourly wage) for second year, and $585,043($29.02 hourly wage) for the third year of the contract.

APPROVED AS TO FORM AND LEGALITY
________________________

CITY AT
TORNEY’S OFFICE

TRACY CITY

COUNCIL

RESOLUT
ION NO. _______________

APPROVING

A PROFESSIONAL SERVICES AGREEMENT WITH ALL CITY
MANAGEMENT SERVICES, INC. FOR SCHOOL PEDESTRIAN CROSSING GUARD SERVICES IN A TOTAL AMOUNT NOT TO EXCEED $1,731,744 FOR

A TERM OF THREE YEARS AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AGREEMENT

WHEREAS,
the City of Tracy Police Department contracts with outside vendors to provide school pedestrian crossing guard services for 28 school crossing sites located within the Jefferson Unified School District and Tracy Unified School District; and

WHEREAS,
the City issued a Request for Proposals and selected All City Management Services, Inc., which demonstrated the competence and professional qualifications necessary for the satisfactory performance of the required services; and WHEREAS, t
he City and A ll City Management Services, Inc. reached an agreement to provide these services, the Professional Services Agreement; and WHEREAS, the Sc
hool Pedestrian Crossing Guard Services is a contracted service funded through the Police Department’s annual budget; now, therefore, be it RESOLVED: Tha
t the City Council hereby approves a professional services agreement with All City Management Services, Inc. for school pedestrian crossing guard services in a total amount not to exceed $1,731,744 for a term of three years; and be it

FURTHER RESO
LVED: That the City Council authorizes the City Manager to execute the Agreement and any amendments to the Agreement.
* * * * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NO
ES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YOUNG
M
ayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
Resolution 2022-

Page 2 ends

June 24, 2022
AGENDA ITEM 1.G

REQUEST

ADOPT A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A GRANT IN THE AMOUNT OF $15,180 FROM THE CALIFORNIA ANIMAL WELFARE FUNDERS

COLLABORATIVE TO FUND EARLY SPAYING/NEUTERING OF DOGS AND CATS

AT THE CITY OF TRACY ANIMAL SHELTER

EXECUTI

VE SUMMARY
The City of Tr
acy Animal Shelter has been awarded a grant for $15,180 from the California Animal Welfare Funders Collaborative for funding early spaying/neutering for hard to place dogs and cats residing in the City of Tracy Animal Shelter. Staff recommends that the City Council accept the grant and authorize an appropriation of $15,180 to the Animal Services budget for FY 22/23.

DISCUSSI
ON
The City
of Tracy Animal Services Unit identified an opportunity and applied for a grant through the California Animal Welfare Funder Collaboration to help decrease the length of stay for certain hard to place dogs and cats. The grant provides for the funding of upfront spay and neuter costs to animals that are difficult to home. By providing early alteration, these pets will be able to go home the same day as their adoption versus having to wait any additional time for an alteration appointment.

From 2019
to 2021, Animal Services had a total of 238 cats under its care for over 30 days, with some up to 153 days. During this same time frame, Animal Services had a total of 61 dogs under its care for over 30 days, with some up to 194 days. The average length of stay for animals brought into the shelter is 11 days.

To reduce t
he amount of time animals are in the shelter, it is important to r emove any barriers in the adoption process . From 2021-2022, Animal Services adopted out 46% of dogs and 44% of cats. Due to adoptions being the most significant contribution to creating positive, live, outcomes for community pets in need, lessening their time in the animal shelter is of the utmost importance.

Accepti
ng this grant will facilitate the following goals and objectives:

Goals
• Reduce the
number of days a pet is in the shelter;
• Reduce the number of behavioral issues in the shelter due to length of stay; and • Reduce the number of pets that could be euthanized due to space or behavioral issues caused by the length of stay in the shelter.

Objecti
ves
• Issue a
press release announcing the kick-off of the grant if accepted; Agenda Item 1.G
June 24, 2022

Page 2 ends

• Partic
ipate and report data (as required) by California Animal Welfare Funders Collaborative; and
• Feature that adopted pets can go home the same day as adoption.

STRATEGI
C PLAN
This agenda ite
m relates to Council’s Strategic Priorities for Public Safety.

FISCAL
IMPACT
The Tracy Ani
mal Shelter will receive $15,180 from the 2022 California Animal Welfare Funders Collaborative grant. $15,180 is to be appropriated to the Police Department’s (Animal Services) Operating Budget for FY 22/23. No City match is required.

RECOMME

NDATION
Staff recommends that City Council adopt a resolution authorizing the acceptance of a grant
in the amount of $15,180 from the California Animal Welfare Funders Collaborative to fund early spaying/neutering of dogs and cats at the Animal Shelter and appropriate the funding to the Police Department’s (Animal Services) Operating Budget for FY 22/23.

Prepared by
: Brittany Pasquale, Animal Services Supervisor
Reviewed
by: Beth Lyons-McCarthy, Police Support Operations Manager Sekou Millington, Chief of Police
Karin Schnaider, Finance Director
Midori Lichtwardt, Assistant City Manager
Approved by:

Michael Rogers, City Manager

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CIT

Y COUNCIL
RESOLU
TION NO. _______________

AUTHORI

ZING THE ACCEPTANCE OF A GRANT IN THE AMOUNT OF
$15,180 FROM THE CALIFORNIA ANIMAL WELFARE FUNDERS

COLLABORATIVE TO FUND EARLY SPAYING/NEUTERING OF DOGS AND

CATS AT THE CITY OF TRACY ANIMAL SHELTER

WHEREAS,
t he City of Tracy Animal Shelter was awarded a $15,180 grant from the California Animal Welfare Funders Collaborative for funding the early alteration of difficult to place dogs and cats residing in the City of Tracy Animal Shelter; and

WHEREAS,
by providing early alteration, these animals will be able to go home the same day as their adoption instead of prolonging additional time for an alteration appointment; and

WHEREAS,
award of the grant does not require a City match of funds; now, therefore, be RESOLVED:

That the City Council accepts the grant in the amount of $15,180 from the California Animal Welfare Funders Collaborative to fund early spaying/neutering of dogs and cats at the City of Tracy Animal Shelter and appropriates the funding to the Tracy Police Department’s (Animal Services) Operating Budget for FY 22/23.
* * * * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCIL M
EMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YO
UNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
June 24, 2022
AGENDA ITEM 1.H

REQUEST

ADOPT A RESOL

UTION APPROVING A GENERAL SERVICES AGREEMENT WITH
KOEFRAN INDUSTRIES, INC. FOR REFRIGERATION, MAINTENANCE, AND

DISPOSAL OF ANIMAL CARCASSES WITH A NOT TO EXCEED AMOUNT OF $85,000 ANNUALLY FOR A TERM OF FIVE YEARS AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENT

EXECUTIVE

SUMMARY
This Agreemen
t will provide to the City of Tracy Animal Shelter the continued use and maintenance of the Koefran Industries, Inc. refrigeration unit used to store animal carcasses, and scheduled disposal of biohazardous animal carcasses.

DISCUSSI
ON
Koefran Industries, Inc. has been providing the refrigeration unit, maintenance of the unit, and disposal services for the City of Tracy since 1995. Koefran Industries, Inc. provides very specific services relat ed to the refrigeration needed to store animal carcasses and the disposal of them. Additionally, Koefran Industries, Inc. provides for the safe removal and replacement of sharps containers utilized by Animal Services to dispose of needles used for vaccinations.

The current agreement expires June 30, 2022. In preparation for the renewal of this contract, staff researched and attempted to identify other vendors that provide the same services in or around the Tracy area. No other vendors were identified. Pursuant to Tracy Municipal Code section 2.20.180(b)(2), the formal request for proposals process is not required because Koefran Industries, Inc. was determined to be a sole source vendor. The term of the agreement will be five years.

FISCAL
IMPACT
Koefran Indus
tries, Inc.’s total compensation under this Agreement shall not exceed $85,000 annually. This includes the cost of service of $1,136.00 per month for the removal of all non-rabid, non-biohazardous animal carcasses and any State of California, Department of Industrial Relations Consumer Price Index (CPI) adjustments needed during the term of the contract.

STRATEGI
C PLAN
This is
a route operational item.

Agenda Item 1.H
June 24, 2022

Page 2 ends

RECOMMENDATION
Staff
recommends that the City Council adopt a resolution approving a general services agreement with Koefran Industries, Inc. for refrigeration and disposal of animal carcasses with a not to exceed amount of $85,000 annually and authorizing the City Manager to execute the agreement.

Prepared
by: Beth Lyons-McCarthy, Support Operations Manager
Review
ed by: Sekou Millington, Chief of Police
Karin Schnaider, Finance Director
Midori Lichtwardt, Assistant City Manager
Approved
by: Michael Rogers, City Manager
Attachm
ents:

Attachm
ent A – Professional Services Agreement with Koefran Industries, Inc.

Attachment B – Sole Source Vendor Memo

ATTACHMENT A

City of Tracy - General Services Agreement with Koefran Industries, Inc.

EXHIBIT B - Compensation
Cost of service is $1,136.00 per month as full payment for the removal of all non-rabid, non biohazardous animal carcasses as set forth herein.

Additional services provided by contractor will be paid as follows:

Removal of 2- gallon sharps containers at the rate of $55.00 per 2- gallon sharps container Removal of 8- gallon sharps containers at the rate of$195.00 per 8- gallon sharps container Pick-up and replacement of full Sharps containers, and $3.75/lb. for removal ofbiohazardous (rabid or otherwise potentially infectious) waste contained in red bag and boxes.

Page 9 ends

1000 CIVIC CENTER DRIVE  TRACY, CA 95376  VOICE: 209 831 6550  FAX: 209 831 4017

MEMORANDUM
Date: April 19, 2022
To: Michael Rogers, City Manager
From: Beth Lyons-McCarthy, Support Operations Manager
Re: Koefran- Sole Source Provider
The police department’s 5-year maintenance agreement with Koefran Industries, Inc. expires on June 30, 2022 and the department would like to enter into a new 5-year agreement with Koefran Industries, Inc. This agreement is scheduled for City Council on June 24, 2022.

Koefran Industries, Inc. has been the Tracy Police Department’s vendor since 1995 and currently supplies the department with a refrigerator and refrigerator maintenance necessary for storing animal carcasses. They are the only vendor that services Tracy and neighboring areas and provides the refrigerator, the maintenance, and the removal of animal carcasses.

Pursuant to Tracy Municipal Code 2.20.180(b)(2) the City Manager can approve of dispensing with the request for proposals because the services we require can only be performed by one source.

Respectfully,
Beth
Lyons-McCarthy
Support Operations Manager
Sekou
Millington
Chief of Police
Micha
el Rogers
City Manager
DocuSign Envelope ID: EF609861-429E-448A-ADFD-EDD530A7CCFE

ATTACHMENT B

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CI

TY COUNCIL
RESOL
UTION NO. _______________

APPROVIN

G A GENERAL SERVICES AGREEMENT WITH KOEFRAN
INDUSTRIES, INC. FOR REFRIGERATION, MAINTENANCE, AND DISPOSAL OF ANIMAL CARCASSES WITH A NOT TO EXCEED AMOUNT OF $85,000

ANNUALLY FOR A TERM OF FIVE YEARS AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENT
WHEREA
S, Koefran Industries, Inc. has been providing the use and maintenance of a refrigeration unit and disposal services for animal carcasses for the City of Tracy since 1995; and WHEREA
S, the current agreement with Koefran Industries, Inc. expires on June 30, 2022; and
WHEREA
S, City of Tracy staff attempted to identify other potential vendors that provide similar services in order to issue formal requests for proposals; and WHEREA
S, Koefran Industries, Inc. provides very specific services and City staff was unable to identify any other vendors that provide these services; and WHEREA
S, pursuant to Tracy Municipal Code section 2.20.180(b)(2), Koefran Industries, Inc. meets the requirements of a sole source vendor and the formal request for proposals process is not required; and
WHEREA
S, the General Services Agreement will provide for the City’s continued use of the refrigeration unit and Koefran Industries, Inc.’s maintenance and disposal services; and WHEREA
S, Koefran Industries, Inc. ’s total compensation under the General Services Agreement shall not exceed $85,000 annually; now therefore, be it

RESOLVED
: That the City Council hereby approves a General Services Agreement with Koefran Industries, Inc. for providing and maintaining a refrigeration unit to store animal carcasses and disposal services in an annual amount not to exceed $85,000 from July 1, 2022 to June 30, 2027; and be it

FURTHER
RESOLVED: That the City Council hereby authorizes the City Manager to execute the General Services Agreement and any amendments to the Agreement. * * * * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCIL M
EMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YO
UNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
Resolution 2022-

Page 2 ends

June 24, 2022
AGENDA ITEM 1.I

REQUEST

ADOPT A RES

OLUTION APPROVING THE SUBMISSION OF A CLAIM TO THE SAN

JOAQUIN COUNCIL OF GOVERNMENTS FOR TRANSPORTATION DEVELOPMENT ACT FUNDS IN THE AMOUNT OF $5,555,484 FOR FISCAL YEAR 2021-2022 AND

AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE CLAIM

EXECUTIVE SUMMARY
The City of Tracy (City) receives funds from the T ransportation Development A ct (TDA) that allow the City to provide transportation services throughout the community. The annual claim
is necessary for the City to continue to receive TDA funding from the State through
the San Joaquin Council of Governments (SJCOG). The amount the City will claim for FY 2021-2022 from the Local Transportation Fund (LTF) and the State Transit Assistance Fund (STA) is $5,555,484.

TDA funds are used for City TRACER operations and capital acquisitions, and pedestrian and bike paths. Staff recommends that the City Council approve the claim for TDA funds for FY 2021-2022 and authorize the City Manager or designee to execute the claim.

DISCUSSION
Under the pro
visions of the Transportation Development Act (TDA), the City is required to make an annual claim for funds apportioned to the City under the Local Transportation Fund (LTF) and the State Transit Assistance Fund (STA). This claim is made to the State through the San Joaquin Council of Governments.

TDA funds ar
e used to support the operations of the City’s TRACER bus system, streets and road maintenance, and pedestrian and bike paths. Money for this claim is primarily being used for operational expenses that are not covered by Federal grants, as a funding source for the purchase of new buses, to fund the completion of a Bikeways Master Plan, and to fund bikeways maintenance in various parts of Tracy.

The total cl
aim for LTF is $5,540,060 which includes $722,200 of unexpended carryover from the previous year’s claim. The total claim for STA is $15,424, which includes $4,000 of previous year’s unclaimed apportionment. The available TDA funding for FY 2021-22 for the City of Tracy to claim under the LTF and STA is $10,157,643. After subtracting out the previous year’s unexpended carryover of $722,200, a total of $4,833,284 will be disbursed to the City of Tracy. The remaining balance of $4,617,583 will be available to claim in future years.

Agenda Item 1.I
June 24, 2022

Page 2 ends

TRACY FISCAL YEAR 2021-2022 TDA CLAIM AMOUNTS AND PURPOSES Fund Amount Purpose
LTF $0 Article 8 Contractor Operating (PUC 99400(c))
LTF $1,241,164 Article 8 Contractor Operating (PUC 99400(c)) Previous Year’s Unclaimed
LTF $1,022,305 Article 8 Contractor Operating (PUC 99400(c)) Previous Year’s Unclaimed. (Transit Set-Aside)
LTF $0 Article 8 Contractor Operating (PUC 99400(c)) Unexpended Carryover
LTF $2,458,169 Article 8 Contractor Capital (99400(e))
LTF $501,679 Article 8 Contractor Capital (99400(e)) Unexpended Carryover LTF $96,222 Pedestrian and Bicycle: Article 3 (PUC 99234) LTF $220,424 Pedestrian and Bicycle: Article 3 (PUC 99234) Unexpended Carryover
LTF $0 Roads & Streets: Article 8 (99400 (a))
LTF $97 Roads & Streets: Article 8 (99400 (a)) Unexpended Carryover STA $11,424 CCR Section 6730 (a)
STA $4,000 CCR Section 6730 (a) Previous Year’s Unclaimed Total:

Less:
$5,555,484
($722,200)
$4,833,284
Total LTF/STA claimed
Unexpended Carryover
Net LTF funds to be disbursed to City of Tracy
Staff reques
ts the Council approve submission of the claim through SJCOG and authorize the City Manager or designee to execute the claim.

STRATEGIC PLAN
This agenda item is
a routine operational item and does not relate to the Council’s Strategic Plans.

FISCAL IMPACT
Authorization to submit the claim is necessary for the City to continue to receive TDA funding.

Such funding is budgeted for FY 2021-2022 for the transit program and to support various bike/ped and street programs.

Agenda Item 1.I
June 24, 2022

Page 3 ends

RECOMMENDATION
Staff re
commends that City Council adopt a resolution approving the submission of a claim to SJCOG for TDA funds in the amount of $5,555,484 for FY 2021-2022 and authorizing the City Manager or designee to execute the claim.

Prepared by: E
d Lovell, Transit Manager
Reviewed by: B
rian MacDonald, Parks & Recreation Director
Karin Schnaider, Finance Director
Midori Lichtwardt, Assistant City Manager
Approved by: Mi
chael Rogers, City Manager

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CI

TY COUNCIL
RESOL
UTION NO. _______________

APPROVI

NG THE SUBMISSION OF A CLAIM TO THE SAN JOAQUIN

COUNCIL OF GOVERNMENTS FOR TRANSPORTATION DEVELOPMENT
ACT FUNDS IN THE AMOUNT OF $5,555,484 FOR FISCAL YEAR 2021-2022

AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE CLAIM
WHEREA
S, under the provisions of the Transportation Development Act (TDA), the City of Tracy is required to make an annual claim to the San Joaquin Council of Governments (SJCOG) for funds apportioned to the City under the Local Transportation Fund and the State Transit Assistance Fund; and
WHEREA
S, u nclaimed amounts are carried forward to the next fiscal year for reimbursement in that time period; and
WHEREA
S, the City’s FY 2021-2022 claim under the Local Transportation Fund and the State Transit Assistance Fund includes funds requested for FY 2021-2 022 in the amount of $5,555,484 as indicated for the following purposes:

Less:
$5,555,484
($722,200)
$4,833,284
Total LTF/STA claimed
Unexpended Carryover
Net LTF funds to be disbursed to City of Tracy
RESOLVED: That the City Council approves the submission of a claim to SJCOG for TDA funds in the amount of $5,555,484 for FY 2021-2 022; and be it FURTHER RESOLVED:

That the City Council authorizes the City Manager or designee to execute
the claim.
* * * * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NO
ES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YOUNG
M
ayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
Resolution 2022-

Page 2 ends

now, therefore be it
June 24, 2022
AGENDA ITEM 1.J

REQUEST
ADOPT
A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE

PROFESSIONAL SERVICES AGREEMENT WITH MTM TRANSIT, LLC TO INCREASE BASE WAGES: (1) $18.50/HOUR TO $21.00/HOUR FOR DRIVERS, (2) $19.00/HOUR TO $21.50 FOR DISPATCHERS, AND (3) $16.00/HOUR TO $18.00/HOUR FOR RESERVATIONISTS, AND INCREASING THE TOTAL CONTRACT PRICE FROM $10,917,793.01 TO $11,475,863.34

EXECUTI

VE SUMMARY
The City
of Tracy has a Professional Services Agreement (PSA) with MTM Transit, LLC (MTM) to operate the Tracer Bus System, which began July 1, 2021. Since that time, it has become increasingly difficult for MTM to attract candidates for various positions, including that of bus drivers. Both the City and MTM wish to amend the PSA to increase the base wages in an effort to be more competitive in the market and attract candidates for the various open positions.

DISCUSS
ION
The City
of Tracy has a PSA with MTM to operate the Tracer Bus System, which went into effect on July 1, 2021. MTM has been the operating contractor for Tracer since August 2016. The current agreement expires on June 30, 2024, which has an option to extend the agreement.

Over
the course of this past year, MTM has experienced vacancies in a variety of positions including bus drivers, dispatchers, and reservationists. Filling these vacancies has become a challenge for MTM, particularly with the bus driver positions. This has led to issues in providing consistent service due to the low staffing available to cover the needed shifts. In addition to challenges recruiting employees, especially drivers, employees are also leaving for higher paying jobs in other areas. The current agreement lists base wages as $18.50/hour for drivers, $19/hour for dispatchers, and $16/hour for reservationists.

The area in
which the majority of MTM’s current employees live is within San Joaquin County and Stanislaus County. There are a few other transit agencies within this area that also compete for the same employee pool. As shown in the chart below listing various agencies within this area and their starting wage for drivers, Tracy (through MTM) is currently the lowest. Each of these agencies, with the exception of San Joaquin RTD, contract out their operations similar to Tracy. While some agencies already paid higher wages than Tracy, since the original approval of the PSA in July 2021, several agencies have either increased their wages or are in the process of doing so.

Transit Agency Position Starting Pay
City of Tracy Driver $18.50
City of Lodi Driver $19.99
City of Manteca Driver $19.50 (effective 7/1/22)
Agenda Item 1.J
June 24, 2022

Page 2 ends

San Joaquin RTD Metro Driver $19.85
Stanislaus Regional Transit Driver $20.50
City of Turlock Driver $21.00
In order
to be more competitive in the market, both MTM and the City desire to increase the base wages for the contract staff as follows: $21/hour for drivers, $21.50/hour for dispatchers, $18/hour for reservationists. The increase will allow MTM to be more competitive in their ability to recruit and retain staff.

The amendment
to the contract will increase the contract price by $243,380 for FY22/23, and a total of $558,071 for the remainder of the contract. The increase in costs will be funded through operating assistance grants from the Federal Transit Administration and the state’s Transportation Development Act.

STRATEG

IC PLAN
This agenda it
em is a routine operational item and does not relate to the Council’s Strategic Plans.

FISCAL
IMPACT
Funding to oper
ate the Tracer Bus System comes out of the Transit Fund and is paid through a combination of Federal and State grants, which are incorporated into the annual budget adopted by City Council. Any increases in cost will be included as part of the FY22/23 budget. There is currently funding available through Federal and State grants to fund the increase in costs.

RECOMM

ENDATION
Staff
recommends that City Council approve Amendment No. 1 to the Professional Services Agreement with MTM Transit, LLC to increase base wages resulting in an increase of the total contract from $10,917,793.01 to $11,475,863.34.

Prepared
by: Ed Lovell, Transit Manager
Review
ed by: Brian MacDonald, Parks & Recreation Director
Karin Schnaider, Finance Director
Midori Lichtwardt, Assistant City Manager
Approved
by: Michael Rogers, City Manager

ATTACHMENTS
Attac
hment A – Amendment 1 to PSA with MTM Transit, LLC

CITY OF TRACY
AMENDMENT 1 TO PROFESSIONAL SERVICES AGREEMENT

WITH MTM TRANSIT, LLC
This Amendment No. 1 (hereafter “Amendment”) to the Professional Services Agreement between the City of Tracy, a municipal corporation (“City”) and MTM Transit, LLC, a Missouri Limited Liability Company (“Contractor”). City and Contractor are referred to individual as “Party” and collectively as “Parties.”

RECITALS
A. On July 1, 2021, City entered into a Professional Services Agreement (“Agreement”) with Contractor for Public Transportation Services.

B. It is becoming increasingly harder for the Contractor to attract and retain sufficient levels of staffing to perform the obligations of the contract.

C. City and Contractor agree that in order to be competitive in attracting and retaining bus drivers and other staff, an increase to the base wages for Contractor staff is needed.

D. This amendment is being executed
pursuant to section 13.2 of the original
agreement.

E. Parties desire to amend the compensation rates as listed in Exhibit A, section A.1.1.2, of the Agreement.

F. Parties desire to increase the “Not to Exceed” amount specified in Exhibit B of the Agreement.

NOW THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. RECITALS TRUE AND CORRECT. City and Contractor hereby agree that the recitals set forth above are true and correct.

2. INCORPORATION OF AGREEMENT. This Amendment hereby
incorporates by reference all terms and conditions set forth in the Agreement, unless specifically deleted or modified hereby. Such deletions or modifications shall not be deemed to extinguish any monetary obligation that Contractor assumed thereunder.

3. TERMS OF AMENDMENT.

ATTACHMENT A

Amendment No 1 to Professional Services Agreement
MTM Transit, LLC

Page 2 of 4 ends

A. Section A.1.1.2 of Exhibit A, “Scope of Work,” is hereby amended to read as follows:

Compensating the following positions at the following minimum rates:
 Drivers: $21/hour
 Dispatchers: $21.5/hour
 Reservationists: $18/hour
Compensation rates may be lower during training periods.

B. Exhibit B-1, attached hereto, shall supersede Exhibit B of the Agreement.

3. MODIFICATIONS. This Amendment may not be modified orally or in any manner other than by an agreement in writing signed by both parties, in accordance with the requirements of the Agreement.

4. SEVERABILITY. If any term of this Amendment is held invalid by a court of competent jurisdiction, the Amendment shall be construed as not containing that term, and the remainder of this Amendment shall remain in effect.

5. SIGNATURES. The individuals executing this Amendment represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this amendment on behalf or the respective legal entities of the Contractor and the City. This Amendment shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

[SIGNATURES ON FOLLOWING PAGE]

Amendment No 1 to Professional Services Agreement
MTM Transit, LLC

Page 3 of 4 ends

IN WITHNESS WHEREOF the parties do hereby agree to this full performance of the terms set forth herein.

City of Tracy
_____________________________
By: Nancy Young
Title: Mayor
Date: _______________________
Approved by City Council on
__________________ by Resolution No.
_________.

Attest:
_____________________________
Adrianne
Richardson, City Clerk
Approved as to form:
_____________________________
Bijal M. Patel, City Attorney
Contractor
MTM Transit, LLC
________________________________
By: _____________________________
Title: ___________________________
Date: _______________________
Federal Employer Tax ID
No.
26-3937729
________________________________
By: _____________________________
Title: ___________________________
Date: _______________________
Brian Balogh
COO- Transit
05/19/2022
Jill Heneghan
CFO
5/19/2022

Amendment No 1 to Professional Services Agreement
MTM Transit, LLC

Page 4 of 4 ends

EXHIBIT B-1 - Compensation

July 1, 2021 –
June 30, 2022
July 1, 2022 –
June 30, 2023
July 1, 2023 –
June 30, 2024
Fixed Monthly Expense $146,811.39 $157,805.44 $162,940.29 Cost Per Vehicle Hour* $41.81 $46.69 $49.50
TOTAL AGREEMENT PRICE $3,538,763.61 $3,878,099.27 $4,059,000.46

July 1, 2024 –
June 30, 2025
(Extension 1)
July 1, 2025 –
June 30, 2026
(Extension 2)
Fixed Monthly Expense $165,978.04 $171,402.54
Cost Per Vehicle Hour* $52.36 $55.26
TOTAL AGREEMENT PRICE $4,216,849.87 $4,405,215.30
*City Provides 100% of the transit fleet

PROJECTED VEHICLE HOURS** July 1, 2021 –
June 30, 2022
July 1, 2022 –
June 30, 2023
July 1, 2023 –
June 30, 2024
Fixed Route Vehicle Hours 26,000 +15% 26,000 +15% 26,000 +15% Paratransit Vehicle Hours 10,000 +15% 10,000 +15% 10,000 +15% TracePLUS On-demand Vehicle
Hours 6,500 +15% 6,500 +15% 6,500 +15%

PROJECTED VEHICLE HOURS** July 1, 2024 –
June 30, 2025
July 1, 2025 –
June 30, 2026
Fixed Route Vehicle Hours 26,000 +15% 26,000 +15% Paratransit Vehicle Hours 10,000 +15% 10,000 +15%
TracePLUS On-demand Vehicle
Hours 6,500 +15% 6,500 +15%

**Actual hours may change per City Council action

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CI

TY COUNCIL
RESOL
UTION NO. _______________
APPROVING AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT WITH MTM TRANSIT, LLC TO INCREA SE BASE WAGES: (1) $18.50/HOUR TO $21.00/HOUR FOR DRIVERS, (2) $19.00/HOUR TO $21.50 FOR DISPATCHERS, AND (3) $16.00/HOUR TO $18.00/HOUR FOR RESERVATIONISTS, AND INCREASING THE TOTAL CONTRACT PRICE FROM $10,917,793.01 TO $11,475,863.34
WHEREAS, the City Council of the City of Tracy previously approved a Professional Services Agreement (PSA) with MTM Transit, LLC (MTM) by Resolution 2021- 058 to operate the Tracer Bus System on May 18, 2021; and
WHEREA
S, since the commencement of the term of the PSA, MTM has experienced difficulty retaining staff and attracting candidates for various positions, including the position of bus drivers; and WHEREA
S, the City has learned that other local jurisdictions pay higher wages to transit staff; and
WHEREA
S, both the City and MTM wish to amend the PSA to increase the base wages listed in the PSA in an effort to retain transit staff, be more competitive in the market, and attract candidates for the various open positions; now, therefore, be it

RESOLVED
: That the City Council hereby approves Amendment No. 1 to the Professional Services Agreement with MTM Transit, LLC to increase base wages resulting in an increase of the total contract from $10,917,793.01 to $11,475,863.34.
* * * * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCI
L MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YOUNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
June 24, 2022
AGENDA ITEM 1.K

REQUEST

ADOPT A RES

OLUTION APPROVING A PROFESSIONAL SERVICES AGREEMENT

WITH TRACY CITY CENTER ASSOCIATION TO COORDINATE AND HOST THE ANNUAL 4TH OF JULY PARADE WITH A NOT TO EXCEED AMOUNT OF $10,000

EXECUTIVE SUMM
ARY
Historically, the Tracy Chamber of Commerce (Chamber) has partnered with the City of Tracy to host the annual 4th of July celebrations in Tracy. Due to several limitations, the Chamber informed the City it does not have the resources to continue hosting the 4th of July Parade for 2022 and beyond. Staff requests that City Council approve a Professional Ser
vices Agreement (PSA) with the Tracy City Center Association (TCCA) to host the upcoming parade in 2022.

DISCUSSION
Historically
, the Tracy Chamber of Commerce (Chamber) has partnered with the City to host the annual 4th of July celebrations. The events on the 4th have included hosting a Tracy Breakfast Lions Club Pancake Breakfast, Hot Air Balloon launch, Parade from Central to Lincoln Park, Day in the Park at Lincoln Park, and Fireworks show launched from the old Heinz plant in the evening. Due to several limitations, the Chamber informed the City it does not have the resources to continue with the Parade for 2022 and beyond. The Chamber intends to continue to partner with the City to host the hot air balloon launch and Lions Club Pancake Breakfast at Lincoln Park and 4th of July Fireworks.

As a result, Tr
acy City Center Association (TCCA) a non-profit public benefit California corporation that operates the Downtown Tracy Community Benefit District (“District”), has offered to host the 4th of July Parade (to begin at 10th and A St, ending at Front Street Plaza) within their District boundaries to preserve the tradition of this event. TCCA will host and organize this event in partnership with the City, taking on coordinating, staffing, cleaning, and other responsibilities. TCCA hopes this event will continue to be an important investment in the local community, and to provide social, economic, and artistic opportunities to local businesses and residents to celebrate and come together in the City.

This PSA form
alizes the services TCCA will be providing, including submitting applications, acquiring permits, maintaining insurance, and hosting/coordinating these events in a timely manner. The compensation for these services will not exceed $10,000.

City staff is amenable
to the negotiated terms included in the PSA and is able to fund support through existing operating budgets.

Agenda Item 1.K
June 24, 2022

Page 2 ends

STRATEGIC PLAN
This agenda item
supports the City of Tracy’s Quality of Life Strategic Priority, and specifically implements the following goal:

Goal 3: Provide City
programming and events that bolster quality of life.

FISCAL IMPACT
Approval of th
is PSA will h ave a fiscal im pact to the General Fund which will be absorbed by department operating budgets. TCCA wi ll p ay the application fee for the event permit, and the cost of this agreement is not to exceed $10,000. Exhibit A to this report outlines the direct fun ding for these events. The hosting of Special Events in Downtown Tracy generates additional foot and v ehicle traffic that le ads to tax revenue for the City from Downtown Businesses.

RECOMMENDATION
That City Council adopt a resolution approving the professional services agreement between the
City of Tracy and Tracy City Center Association to coordinate and host the annual 4th of July parade with a not to exceed amount of $10,000.

Prepared by: Kati
e Akre, Recreation Program Coordinator
Reviewed by: Thi
en Nguyen, Recreation Services Supervisor
Jolene Jauregui-Correll, Recreation Services Manager
Brian MacDonald, Director of Parks & Recreation
Karin Schnaider, Director of Finance
Midori Lichtwardt, Assistant City Manager
Approved by: Michael Roger
s, City Manager

ATTACHMENTS
Attachment A – PSA with T
racy City Center Association
City of Tracy -- Professional Services Agreement with Tracy City Center Association

Page 1 of 8 ends

CITY OF TRACY

PROFESSIONAL SERVICES AGREEMENT WITH

TRACY CITY CENTER ASSOCIATION
This Profe
ssional Services Agreement (Agreement) is entered into between the City of Tracy, a municipal corporation (City), and Tracy City Center Association (TCCA), a non-profit public benefit California corporation (Consultant). City and Consultant are referred to individually as “Party” and collectively as “Parties.”
Recitals

A. The City is in need of ser
vices to coordinate and host an annual 4th of July Parade. City has determined that Consultant possesses the skills, experience, and certification required to provide the services.

B. After negotiat
ions between the City and Consultant, the Parties have reached an agreement for the performance of services in accordance with the terms set forth in this Agreement.

C. This Agreement is exempt from formal procurement procedure requirements pursuant to Tracy Municipal Code section 2.20.120.

D. This Agreement is being executed pursuant to Resolution No. 2022 - , approved by City Council on June 24, 2022.

Now therefore, the Parties mutually agree as follows:

1. Scope of Work. Consultant shall perform the services described in Exhibit “A” attached hereto and incorporated by reference. The services shall be performed by, or under the direct supervision of, Consultant’s Authorized Representative: John Oh. Consultant shall not replace its Authorized Representative, nor shall Consultant replace any of the personnel listed in Exhibit “A,” nor shall Consultant use or replace any subcontractor or subconsultant, without City’s prior written consent. A failure to obtain the City’s prior written consent for any change or replacement in personnel or subcontractor/subconsultant may result in the termination of this Agreement.

1.1. Permit Require
ments. In addition to the services described in Exhibit “A,” Consultant shall submit a facility use and special event permit application, including any applicable supplemental permits for operation of the events described above, and permit applications for all required safety inspections. Any City obligations will be specified in any permits issued.

2. Time of Performance. Time is of the essence in the performance of services under this Agreement and the timing requirements set forth shall be strictly adhered to unless otherwise modified in writing in accordance with this Agreement. Consultant shall begin performance and shall complete all required services no later than the dates set forth in Exhibit “A.” Any services for which times for performance are not specified in this Agreement shall be started and completed by Consultant in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the Consultant. Consultant shall submit all requests for time extensions to the City in writing no later than ten days after the start of the condition which purportedly caused the delay, and not later than the date on which performance is due. City shall grant or deny such requests at its sole discretion.

2.1 Term. The term of th
is Agreement shall begin on July 1, 2022 and end on July 31, 2022, unless terminated in accordance with Section 6.

DocuSign Envelope ID: 2350EECA-F540-4D4F-A4A3-7F885E13CAEF

ATTACHMENT A
City of Tracy -- Professional Services Agreement with Tracy City Center Association

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3. Compensation . City shall pay Consultant on a time and expense basis, at the billing rates set forth in Exhibit “B,” attached hereto and incorporated by reference for services performed under this Agreement.

3.1 Not to Exceed A mount. Consultant’s total compensation under this Agreement shall not exceed $10,000.00. Consultant’s billing rates shall cover all costs and expenses for Consultant’s performance of this Agreement. No work shall be performed by Consultant in excess of the total compensation amount provided in this section without the City’s prior written approval.

3.2 Invoices. Consultant shall submit annual invoice(s) to the City that describe the services performed, including times, dates, and names of persons performing the services.

3.2.2 Consultant’s failure to submit invoice(s) in accordance with these requirements may result in the City rejecting said invoice(s) and thereby delaying payment to Consultant.

3.3 Payment. Within 30 days after the City’s receipt of invoice(s), City shall make payment to the Consultant based upon the services described on the invoice(s) and approved by the City.

4. Indemnification. Consultant shall, to the fullest extent permitted by law, indemnify, defend (with independent counsel approved by the City), and hold harmless the City from and against any claims arising out of Consultant’s performance or failure to comply with obligations under this Agreement, except to the extent caused by the sole, active negligence or willful misconduct of the City.

In t
his section, “City” means the City, its officials, officers, agents, employees and volunteers; “Consultant” means the Consultant, its employees, agents and subcontractors; “Claims” includes claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all related costs and expenses) and any allegations of these; and “Arising out of” includes “pertaining to” and “relating to”.
(The duty of a "design professional" to indemnify and defend the City is limited to claims that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of the design professional, under Civ. Code § 2782.8.)
The prov
isions of this section survive completion of the services or the termination of this Agreement, and are not limited by the provisions of Section 5 relating to insurance.

5.1 Commercial Gener
al Liability (with coverage at least as broad as ISO form CG 00 01 01 96) “per occurrence” coverage shall be maintained in an amount not less than $4,000,000 general aggregate and $2,000,000 per occurrence for general liability, bodily injury, personal injury, and property damage.

5.2 Automobile Liability (with coverage at least as broad as ISO form CA 00 01 07 97, for “any auto”) “claims made” coverage shall be maintained in an amount not less than $1,000,000 per accident for bodily injury and property damage.

5.3 Workers’ Compensation coverage shall be maintained as required by the State of California.

5.4 Professional Liability “claims made” coverage shall be maintained to cover damages that may be the result of errors, omissions, or negligent acts of Consultant in an amount not less than $1,000,000 per claim.

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5.5 Endorsements. Consultant shall obtain endorsements to the automobile and commercial general liability insurance policies with the following provisions:

5.5.1 The City (including its elected officials, officers, employees, agents, and volunteers) shall be named as an additional “insured.”

5.5.2 For any claims related to this Agreement, Consultant’s coverage shall be primary insurance with respect to the City. Any insurance maintained by the City shall be excess of the Consultant’s insurance and shall not contribute with it.

5.6 Notice of Cancellation. Consultant shall notify the City if the policy is canceled before the expiration date. For the purpose of this notice requirement, any material change in the policy prior to the expiration shall be considered a cancellation. Consultant shall immediately obtain a replacement policy.

5.7 Authorized Insurers. All insurance companies providing coverage to Consultant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California.

5.8 Insurance Certificate. Consultant shall provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance and endorsements, in a form satisfactory to the City, before the City signs this Agreement.

5.9 Substitute Certificates. Consultant shall provide a substitute certificate of insurance no later than 30 days prior to the policy expiration date of any insurance policy required by this Agreement.

5.10 Consultant’s Obligation. Maintenance of insurance by the Consultant as specified in this Agreement shall in no way be interpreted as relieving the Consultant of any responsibility whatsoever (including indemnity obligations under this Agreement), and the Consultant may carry, at its own expense, such additional insurance as it deems necessary. Failure to provide or maintain any insurance policies or endorsements required herein may result in the City terminating this Agreement.

6. Termination . The City may terminate this Agreement by giving ten (10) days’ written notice to Consultant. Upon termination, Consultant shall give the City all original documents, including preliminary drafts and supporting documents, prepared by Consultant for this Agreement. The City shall pay Consultant for all services satisfactorily performed in accordance with this Agreement, up to the date notice is given.

7.1 Each Pa rty shall designate a senior management or executive level representative to negotiate the dispute;

7.2 The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority.

7.5 The Parties shall equally bear the costs of any third party in any alternative dispute resolution process.

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8. Ownership of Work. All original documents prepared by Consultant for this Agreement, whether complete or in progress, are the property of the City, and shall be given to the City at the completion of Consultant’s services, or upon demand from the City. No such documents shall be revealed or made available by Consultant to any third party without the City’s prior written consent.

9. Independent Contractor Status. C onsultant is an independent contractor and is solely responsible for the acts of its employees or agents, including any negligent acts or omissions.

Consultant is not City’s employee and Consultant shall have no authority, express or implied, to act on behalf of the City as an agent, or to bind the City to any obligation, unless the City provides prior written authorization. Consultant is free to work for other entities while under contract with the City.

Consultant, and its agents or employees, are not entitled to City benefits.

10. Conflicts of Interest.

Consultant (including its employees, agents, and subconsultants) shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. If Consultant maintains or acquires such a conflicting interest, the City may terminate any contract (including this Agreement) involving Consultant’s conflicting interest.

12. Notices. A ll notices, demands, or other communications which this Agreement contemplates or authorizes shall be in writing and shall be personally delivered or mailed to the other party to the addresses listed below. Communications shall be deemed to have been given and received on the first to occur of: (1) actual receipt at the address designated below, or (2) three working days after the deposit in the United States Mail of registered or certified mail, sent to the address designated below.

To City: To Consultant:

Parks and Recreation Director Tracy City Center Association Community Facilities Division John Oh
333 Civic Center Plaza 20 W. 11th Street
Tracy, CA 95376 Tracy, CA 95376

With a copy to:

City Attorney
333 Civic Center Plaza
Tracy, CA 95376

13. Miscellaneous.

13.1 Standard of Care. Unless otherwise specified in this Agreement, the standard of care applicable to Consultant’s services will be the degree of skill and diligence ordinarily used by reputable professionals performing in the same or similar time and locality, and under the same or similar circumstances.

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13.2 Amendments. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both Parties.

13.3 Waivers. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement.

13.4 Assignment and Delegation. Consultant may not assign, transfer or delegate this Agreement or any portion of it without the City’s written consent. Any attempt to do so will be void.

City’s consent to one assignment shall not be deemed to be a consent to any subsequent assignment.

13.6 Compliance with the Law. Consultant shall comply with all applicable local, state, and federal laws, whether or not those laws are expressly stated in this Agreement.

13.6.1 Prevailing Wage Laws. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates; employment of apprentices (§ 1777.5), certified payroll records (§1776), hours of labor (§1813 and §1815), debarment of contractors and subcontractors (§1777.1) and the performance of other requirements on “public works” and “maintenance” projects. If the services being performed under this Agreement are part of a “public works” or “maintenance” project, as defined in the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. These prevailing rates are on file with the City and are available online at http://www.dir.ca.gov/DLSR. Consultant shal
l defend, indemnify and hold the City, its officials, officers, employees and agents, harmless from any and all claims, costs, penalties, or interests arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

13.6.2 Non-discr imination. Consultant represents and warrants that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age.

Consultant shall also comply with all applicable anti-discrimination federal and state laws, including but not limited to, the California Fair Employment and Housing Act (Gov. Code 12990 (a-f) et seq.).

13.7 Business Entity Status. Consultant is responsible for filing all required documents and/or forms with the California Secretary of State and meeting all requirements of the Franchise Tax Board, to the extent such requirements apply to Consultant. By entering into this Agreement, Consultant represents that it is not a suspended corporation. If Consultant is a suspended corporation at the time it enters this Agreement, City may take steps to have this Agreement declared voidable.

13.9 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns.

13.12 Controlling Provisions. In the case of any conflict between the terms of this Agreement and the Exhibits hereto, and Consultant’s proposal (if any), the Agreement shall control. In the case of any conflict between the Exhibits hereto and the Consultant’s proposal (if any), the Exhibits shall control.

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14. Signatures. The individuals executing this Agreement on behalf of Consultant represent and warrant that they have the right, power, legal capacity and authority to enter into and to execute this Agreement on behalf of Consultant.

The Par
ties agree to the full performance of the terms set forth here.

City of Tracy, a Municipal Corporation
By:

Nancy Young
Title: Mayor
Date:

Attest:

Adrianne Richardson, City Cle rk
Approved as to form:

Bijal M. Patel, City Attorney
Tracy City Center Association, a Non-profit
Public Benefit California Corporation
By:

John Oh
Title: President
Date:

Federal Employer Tax ID No.: 37-1605304
By:

Dennis Barta
Title: Treasurer
Date:

Exhibits:

A - Scope of Work
B - Compensation
DocuSign Envelope ID: 2350EECA-F540-4D4F-A4A3-7F885E13CAEF 6/9/2022 | 10:29 AM PDT
6/9/2022 | 3:53 PM PDT
City of Tracy -- Professional Services Agreement with Tracy City Center Association

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EXHIBIT A - Scope of Work
Tracy C
ity Center Association’s (TCCA) Obligations: TCCA agrees to diligently and faithfully furnish the following services to the City:

1.1 Personnel.

1.1. 1 Plan, coordinate, organize, promote, and host annual 4th of July Parade including registration process with community members for floats and participants, promotional material for parade, identify judging panel for parade, and submit event layout map for designated areas of event (parade staging, spectator locations, judges booth, etc.) in Tracy, CA on July 4, 2022

1.1.2 Provide necessary staff, volunteers, equipment, and promotions to successfully conduct the 4th of July Parade, or comparable event, and have a TCCA representative on site during all permitted reservation times.

1.2 Operations.

1.2. 1 Conduct regular meetings with TCCA staff, volunteers, and City staff to coordinate event details, and adhere to the final, City-approved event schedule and layout map.

1.2.2 Provide supplemental portable toilets, trash receptacles, and dumpsters on site for event. Coordinate with City Staff for delivery.

1.2.3 Clean and restock portable toilets and empty trash receptacles during event.

1.2.4 Adequately clean any City facilities and public right of way to acceptable condition after permitted use and facilitate and pay for any repairs to damages caused by such use, other than normal wear and tear, in excess of the damage deposit.

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EXHIBIT B - Compensation
Compens
ation listed below are estimated expenses for TCCA to host this annual event, with TCCA intending to pursue and seek different funding and sponsorships opportunities in the future. The City will provide TCCA with compensation not to exceed $10,000.00 for miscellaneous expenses related to coordination and organization of the event specified in the Agreement:

EXPENSE AMOUNT

1. Staff Time $ 1,269.40

2. Advertising/ Promotion $ 2,350.00

3. Insurance $ 1,212.94

4. Rentals $ 2,788.40

5. Decorations $ 500.00

6. Security $ 960.00

7. Entertainment $ 500.00

8. Miscellaneous items $ 150.00
- Judges Station
TOTAL: $ 9,730.74
DocuSign Envelope ID: 2350EECA-F540-4D4F-A4A3-7F885E13CAEF

APPROVED AS TO FORM AND LEGALITY
________________________
CITY ATTORNEY’S OFFICE

TRACY CITY COUNCIL
RESOLUTION NO. _______________

APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH TRACY

CITY CENTER ASSOCIATION TO COORDINATE AND HOST THE ANNUAL 4TH OF JULY PARADE WITH A NOT TO EXCEED AMOUNT OF $10,000 WHEREAS, Tracy City Center Association (TCCA) is a non-profit public benefit California corporation that operates the Downtown Tracy Community Benefit District (“District”); and WHEREAS, TCCA has offered to host the annual 4 th of July Parade within their District boundaries to preserve the tradition of this event; and WHEREAS, the Tracy City Council recognizes TCCA as a valuable partner to the City of Tracy in providing events and supporting the economic growth within the City; and WHEREAS, TCCA and the City reached an agreement regarding the services TCCA will provide the City to host and coordinate the 4 th of July Parade in the form of the Professional Services Agreement attached as Exhibit A; and
WHEREAS, Pursuant to the Professional Services Agreement, TCCA is responsible for submitting applications, acquiring permits, maintaining insurance, and hosting/coordinating these events in a timely manner; and
WHEREAS, the City will provide an estimated payment for direct services not to exceed $10,000; and
WHEREAS, the Professional Services Agreement is exempt from formal procurement requirements pursuant to Tracy Municipal Code section 2.20.120; now, therefore, be it RESOLVED: That the City Council of the City of Tracy hereby approves the Professional Services Agreement, in substantially the form attached as Exhibit A, with Tracy City Center Association, reflecting the procurement of the specified services to host the 4 th of July Parade with a not to exceed amount of $10,000; and be it
FURTHER RESOLVED: That the final agreement shall be reviewed and approved as to form and legality by the City Attorney prior to final execution. * * * * * * * * * * * * *
2 The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YOUNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
Resolution 2022-

Page 2 ends

June 24, 2022
AGENDA ITEM 1.L

REQUEST
ADOPT A RESOLUTION: 1) CALLING AND GIVING NOTICE TO HOLD A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 8, 2022, FOR THE

ELECTION OF CERTAIN OFFICERS PURSUANT TO THE CALIFORNIA ELECTIONS CODE; 2) REQUESTING THE BOARD OF SUPERVISORS OF SAN JOAQUIN COUNTY TO CONSOLIDATE THE CITY OF TRACY’S GENERAL

MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 8, 2022; 3) REQUESTING THE SERVICES OF THE SAN JOAQUIN COUNTY REGISTRAR OF VOTERS (REGISTRAR); AND 4)

AUTHORIZING THE PAYMENT OF COSTS FOR SUCH SERVICES, FOR THE

AMOUNT OF ACTUAL COSTS INCURRED

EXECUTIVE SUMMARY
Under California Elections Code 1301, a General Municipal Election must be held on an established election date unless
the relevant City Council has enacted an
ordinance requiring its
election to be held on one of the dates specified in such statute.

Any such an
ordinance becomes effective upon approval of the County Board of Supervisors.

In compliance with the
California Elections Code 1301, the City Council adopted Ordinance No.
470 establishing that the City of Tracy holds a regular General Election on every even
numbered year on the first Tuesday after the first Monday in November in each such even-numbered
year, This year, the proposed date for the City’s General Municipal Election is
Tuesday, November 8, 2022.

The City of
Tracy holds a General Municipal Election to fill a vacant and/or term expir
ed City
Council seat; or place any public or City Council generated measure/ initiative/referendum on
the ballot. The City Council will have three terms expiring at the
end of 2022
. The terms expiring are currently held by Council Member Arriola, Mayor Pro
Tem Vargas, and Mayor Young.

To effectuate the City’s General Municipal Election, the City Council must take several actions under the California
Elections Code. If adopted by the City Council, the
proposed resolution will
satisfy these requisite requirements.

DISCUSSION
As noted above, the City Council will have three seats whose terms will expire in 2022. The three Council seats whose terms are expiring are currently held by Council
Member Arriola, Mayor Pro Tem Vargas, and Mayor Young. Pursuant to Government Code 36503, the terms of these three Council Members will end on the date of the installation of the new Council Members, following adoption by the City Council of the official election results of the November 8, 2022 election. The anticipated date for the certification and installation will be a Council meeting in December 2022.

Agenda Item 1.L
June 24, 2022

Page 2 ends

Prior to conducting a General Municipal Election for these three seats with expiring terms, the City must take a number of actions before the California Elections Code.

One of the key actions is for City Council to adopt a resolution calling and giving notice to
hold a General Municipal Election in the City of Tracy on November 8, 2022. This election will be for the purpose of electing two Council Members to serve a four-year term and one Mayor for a two-year term. All of the terms will commence in December 2022 after the Council certifies the November 8th election results and installs the newly elected officers and will expire at the end of either 2024 or 2026, as the case may
be, after the then City Council has certified the respective election results and installed
the newly elected officers.

To reduce the costs of the election, pursuant to California Elections Code Section 10002, the Council can seek to request of the Board of Supervisors of San Joaquin County that
they consolidate the City’s General Municipal Election, of November 8, 2022, with the Statewide General Election that will be held by the County of San Joaquin (County). Further, pursuant to California Elections Code Section 10400, the Council can request the services of the San Joaquin County Registrar of Voters (Registrar) for its election. The Registrar has provided an estimated cost of conducting the election for the City; however, many variables may change the amount of the
final invoice. Based on past practice, the County will provide a full accounting and invoice to the City by January 2023, and the City will need to reimburse the County for these services. The cost of these services is anticipated to be less than $200,000.

STRATEGIC PLAN
This agenda item is a routine operational item and does not relate to the Council’s Strategic Plans.

FISCAL IMPACT
All costs associated with the consolidated General Election have been included in the Fiscal Year 2021-22 budget.

RECOMMENDATION
That the City Council adopt a Res olution: 1) Calling and giving notice to hold a General Municipal Election on Tuesday, Novemb er 8, 2022, for the election of certain office
rs pursuant to the California Elections Code; 2) Requesting the B oard of Superviso
rs of San Joaquin County to consolidate the City of Tracy’s Gener al Municipal Election with the Statewide General Election to be held on November 8, 2022; 3) Requesting the services of the San Joaquin County Registrar of Voters; and 4) Authorizing the
payments of costs for such services, for the amount of actual costs incurred.

Prepared by: Adrianne Richardson, City Clerk
Reviewed by: Karin Schnaider, Finance Director
Bijal Patel, City Attorney
Midori Lichtwardt, Assistant City Manager
Approved by: Michael Rogers, City Manager

APPROVED AS TO FORM AND LEGALITY
________________________

CITY ATT
ORNEY’S OFFICE

TRACY CITY C
OUNCIL
RESOLUTION NO. _______________
1) CALLING AND GIVING NOTICE TO HOLD A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 8, 2022, FOR THE ELECTION OF CERTAIN OFFICERS PURSUANT TO THE CALIFORNIA ELECTIONS CODE; 2) REQUESTING THE BOARD OF SUPERVISORS OF SAN JOAQUIN

COUNTY TO
CONSOLIDATE THE CITY OF TRACY’S GENERAL MUNICIPAL

ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 8, 2022; 3) REQUESTING THE SERVICES OF THE SAN JOAQUIN COUNTY REGISTRAR OF VOTERS (REGISTRAR); AND 4)
AUTHORIZING THE PAYMENT OF COSTS FOR THE REGISTRAR’S
S

ERVICES FOR SUCH AMOUNT OF ACTUAL COSTS INCURRED
WHEREAS, Under California Elections Code 1301, a General Municipal Election must be held on an established election date unless the relevant City Council has enacted
an ordinance requiring its election to be held on one of the dates specified in such statute; and

WHEREAS
, In compliance with the California Elections Code 1301, the City Council adopted Ordinance
No. 470 establishing that the City of Tracy holds a regular General Election on every even numbered year on the first Tuesday after the first Monday in November in each such even
-numbered year; and
WHEREAS, The City of Tracy holds a General Municipal Election to fill a vacant and/or term expired City Council seat; or place any public or City Council generated measure/ initiative/referendum on the ballot; and
WHEREAS, the
City Council will have three seats whose terms will expire by the end of 2022. The three Council seats whose terms are expiring are currently held by Council Member Arriola, Mayor Pro Tem Vargas, and Mayor Young; and
WHEREAS, the City seeks to hold the City’s General Municipal Election on Tuesday, November 8, 2022; and
WHEREAS, To reduce
the costs of the election, pursuant to California Elections Code Section 10002, the City seeks to request the Board of Supervisors of San Joaquin County to consolidate the City’s General Municipal Election, of November 8, 2022, with the Statewide General Election
that will be held by the County of San Joaquin (County); and

WHEREAS,
Pursuant to California Elections Code Section 10400, the City seeks to request the
services of the San Joaquin County Registrar of Voters (Registrar) for its election; and
Resolution 2022-

Page 2 ends

WHEREAS, The Registrar has provided an estimated cost of conducting the election for the City, which amount is anticipated not to exceed $200,000; and now therefore be it RESOLVED: The City Council of the City of Tracy, California, does resolve, declare, determine, and order as follows:

Section 1: The City Council hereby ca lls and provides notice for the holding of a General Municipal Election in the City of Tracy, California, on Tuesday, November 8, 2022, for the purpose of electing a Mayor for the full term of two years commencing December 2022 and expiring November 2024; two members of t he C ity Council for the full term of four years commencing December 2022 and expiring November 2026.

Section 2: The City Council hereby requests the Board of Supervisors of the County of San
Joaquin consent and agree to the consolidation of the City’s General Municipal Election with the Statewide General Election on Tuesday November 8, 2022 and to provide the assistance of the County Registrar of Voters for such election.

Section 3: The City Council hereby authorizes the County Elections Department of San Joaqui
n County Election to hold the General Municipal Election in all respects with the St
atewide General Election, as if there were only one election, with only one form of ballot, and canvass the returns of the General Municipal Election.

Section 4:

The Board of Supervisors is requested to issue instructions to the County El
ections Department to take any and all steps ne cessary for holding of the consolidated election.

Section 5: That the City Council hereby appropriates all monies necessary to prepare for and conduct
said election and hereby authorizes the City Clerk to take any and all actions necessary to prepare for and conduct said election consistent with this Resolution and the California Elections Code where applicable.

Section 6: The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the County Elections Department of the County of San Joaquin.

Section 7:

That the City Clerk shall certify to the passage and adoption of this resolution and ent
er it into the book of original resolutions.
* * * * * *
* * * * * * * *
Resolution 2022-

Page 3 ends

The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022
, by the following vote:

AYES: COUNCIL M
EMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YO
UNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
June 24, 2022
AGENDA ITEM 3.A

REQUEST

CONDUCT A PUBLI

C HEARING, AND UPON CONCLUSION, ADOPT THE
FOLLOWING RESOLUTIONS:
1) ADOPT T
HE CITY OF TRACY FISCAL YEARS (FY) 2022/23 ANNUAL

OPERATING AND CAPITAL BUDGET AND AUTHORIZE THE BUDGET OFFICER TO AMEND THE CITY’S POSITION CONTROL ROSTER FOR FY 2022/23; 2) ADOPT A FISCAL SUSTAINABILITY FUNDING POLICY FOR THE CITY OF

TRACY AND APPLY SUCH POLICY RETROACTIVELY TO THE AMENDED FISCAL YEAR 2021-22 ANNUAL BUDGET;
3) AUTHORIZE THE COMMITMENT OF MEASURE V FUNDS FOR SPECIFIED PURPOSES, FOR THE AMENDED FISCAL YEAR 2021/22 ANNUAL BUDGET AND THE PROPOSED FISCAL YEAR 2022/23 ANNUAL BUDGET;
4) ADOPT COMMITTED FUND BALANCES (GASB 54) FOR FISCAL YEAR ENDING JUNE 30, 2022 IN COMPLIANCE WITH STATEMENT 54 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD; AND
5) ESTABLISH FISCAL YEAR 2022/23 APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA STATE CONSTITUTION.

EXECUTIVE

SUMMARY
The City’
s annual budget is a numerical representation of the Council’s goals and priorities. As such, the City Manager’s Proposed FY 2022/23 Annual Operating and Capital Budget (Annual Budget) was developed under the framework of the Council’s adopted strategic priorities and objectives. The FY 2022/23 Annual Budget appropriations total approximately $352.2 million from all funding sources including capital improvements of $93 million. The budget document summarizes City funds and provides an overview of existing and new capital projects that will be funded in the upcoming fiscal year.

The public hearing scheduled for this evening will allow for additional discussion and community input prior to Council consideration and adoption of the Proposed FY 2022/23 Annual Operating and Capital Budget, including authorization of the FY 2022/23 position control roster; adoption of the FY 2022/23 Committed Fund Balances (GASB 54); adoption of the Appropriation Limit (Gann Limit); adoption of the Fiscal Sustainability Funding Policy effective FY 2021/22; and the adoption of the Measure V committed funds for FY 2021/22 and FY 2022/23.

The City’s Proposed FY 2022/23 Annual Operating and Capital Budget can be located at the City Clerk’s Office in City Hall and on the City of Tracy Website. https://www.cityoftracy.org/our-city/departments/finance-department/fy-2022/23-budget- draft
Agenda Item 3.A
June 24, 2022

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DISCUSSION
Proposed FY 2022/23 Citywide Annual Operating and Capital Budget The FY 2022/23 Annual Operating and Capital Budget (Annual Budget) offers growth, innovation, and fiscal sustainability that will benefit the residents and community it serves. The budget will support enhanced services, new core programming, and policy initiatives that will strengthen the City’s position as a place to live, play, and work.

The FY 2022/23 Annual Budget appropriations total approximately $352.2 million, including from $22.9 million in Transfers Between funds and capital improvements of $93 million. The Net Position increased $71.2 million after the capitalization of $93 million in capital improvements.

FY 2022/23
Proposed Budget
General Fund 103,665,324
Special Revenue Funds 79,675,526
Capital/Debt 39,886,629
Internal Services Funds 21,349,742
Enterprise Funds 84,726,529
Total Expenditures (without Transfers) 329,303,750
Transfers Between Funds 22,944,635
Total Expenditures (with Transfers) 352,248,385
General Fund
36%
Special Revenue
Funds
23%
Capital/Debt
11%
Internal Services
Funds
6%
Enterprise Funds
24%
FY 2023 Proposed Appropriations (with Transfers)
Agenda Item 3.A
June 24, 2022

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Cityw
ide Operating and Capital Budget
Summary
of Proposed Revenues and Expenses for All Funds without Transfers REVENUES (in thousands)
FY 21/22
Amended
FY 22/23
Proposed
FY 23/24
Forecasted
GENERAL FUND $ 117,839 $ 137,988 $ 144,134
DEVELOPMENT SERVICES 17,049 18,160 18,087
GAS TAX 3,167 4,913 5,061

GEN FUND CAPITAL - - -
SPECIAL REVENUE 32,977 8,335 8,585
CAPITAL 35,910 36,541 37,637
DEBT 4,524 6,318 6,453
INTERNAL SERVICES FUND 16,425 20,368 20,923 WATER 23,010 23,868 24,584
WASTEWATER 16,086 17,055 17,551
SOLID WASTE 22,115 26,614 27,412
STORM DRAIN 729 751 774
AIRPORT 954 757 780
TRANSIT 5,611 5,780 5,953
TOTAL REVENUES 296,396 307,448 317,934
EXPENSES (in thousands)
GENERAL FUND $ 86,697 $ 103,665 $ 105,155
DEVELOPMENT SERVICES 14,135 16,927 16,361
GAS TAX 8,379 4,380 1,888
GEN FUND CAPITAL 30,079 44,833 2,891
SPECIAL REVENUE 48,356 13,540 6,083
CAPITAL 35,069 34,103 930
DEBT 4,198 5,783 5,783
INTERNAL SERVICES FUND 19,606 21,350 19,868 WATER 24,719 24,406 25,096
WASTEWATER 60,845 21,155 21,642
SOLID WASTE 26,226 29,914 30,442
STORM DRAIN 736 633 640
AIRPORT 1,318 1,202 1,240
TRANSIT 8,505 7,433 7,160
TOTAL EXPENDITURES 368,868 329,324 245,179
SURPLUS/DEFICIT (72,472) (21,876) 72,755
CAPITAL IMPROVEMENT 162,836 93,034 4,656
NET POSITION CHANGE 90,364 71,158 77,411
Agenda Item 3.A
June 24, 2022

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Proposed FY 202
2/23 General Fund Annual Operating and Capital Budget
Shortly after the adoption of the FY 2021/22 Operating and Capital Budget, the City received the January-March 2021 Sales Tax (Bradley Burns State Sales Tax) disbursement from the State of California Department of Tax Franchise Administration (CDTFA), which resulted in a significant change in the City’s estimated revenues. The result was due to a recent change in tax reporting by a predominant sales tax producer.

This reporting change shifted the tax allocation from a statewide allocation through the County sales tax pool where the tax was distributed pro-rata throughout the State to a local sales tax allocation based upon the businesses’ point-of-sale or fulfillment of the sale. The change will have a significant and material impact on the City’s General Fund revenues; nearly doubling the current Sales Tax revenues for the City. The estimated revenues from the reporting change that resulted in a revenue growth of over $5 million a quarter. In FY 2020/21, the General Fund estimated Sales Tax is expected to have an additional $10 million over the estimated budget and in FY 2021/22, the General Fund estimated Sales Tax is expected to be $25 million over the adopted budget. With new ecommerce businesses expected to open in FY 2022/23, the Sales Tax forecast is expected to grow an additional $12M next year plus the economy growth of 5% for the next 2-3 years. Below is a table for the March 22, 2022 forecast that provided the financial framework to begin discussing new fiscal sustainability funding strategies that have been incorporated into the development of the FY 2021/22 and FY 2022/23 budgets.

Budget and Fi
scal Sustainability Funding Planning
However, this revenue is not guaranteed as there is significant interest to have these dollars reallocated to other jurisdictions. Over the last year, the City Manager has been meeting regularly with the City Council’s Fiscal Sustainability Ad-Hoc Committee to discuss the City’s long-term fiscal planning. One of the items discussed regularly was the instability of the new Sales Tax revenues and the potential fiscal impacts should a loss of revenue occur. The Ad-Hoc Committee returned twice to the City Council to recommend funding policies that would help to ensure a fiscally sustainable budget.

On December 7, 2021, the Ad-Hoc Committee’s update to the City Council, proposed fiscal sustainability strategies that recommended utilization of the General Fund surplus.

This included $1M CalPERS (1% of GF revenues), $1M Retiree Medical (1% of revenues) $3M deferred Maintenance (3% of revenues) and $3M program increase (3%of revenues), for a total recommended $8M budget increase.

On March 22, 2022, the first draft of the General Fund Operating budget was reviewed by City Council. In the amended General Fund budget for FY 2021/22, revenue estimates were coming in $4M higher. Staff recommended increasing the deferred maintenance by $2M and pension/medical leave retirement pre-funding by $2M. City Council agreed and provided further direction for on-going funding for deferred

Agenda Item 3.A
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maintenanc
e to include parks in the amount of $3M and $4M for road improvements beginning in FY 2023/24.

The City
Council also directed staff to continue evaluating the potential for a ballot measure that would modernize the City’s Business License tax. This item is returning to the City Council on July 5, 2022 for consideration. The impacts of this measure are not included in the proposed budget.

The Propos
ed FY 2022/23 General Budget reflects the City Council’s desire to expand City services while strengthening the City’s fiscal resiliency. The City Council dedicated almost $3.5 million in on-going City services and programs; funding 20 full-time positions in six departments. The additional staffing will address park planning and maintenance, street repair and maintenance, Police Animal and Dispatch Services, homeless services, and more. In addition, the FY 2022/23 General Fund budget will begin contributing $4 million to prefund to employee retirement benefit liabilities related to pension and medical leave balances. It is projected the City will achieve 85% funded status in the next five years. The City also increased capital deferred maintenance funding, setting aside almost $15 million for current and future deferred maintenance and capital improvement projects, such as road, building, and park improvement projects. It is estimated that the City could potentially set aside $120M in future Capital funding in addition to the $6M planned over the five-year period. Should the sales tax revenue drop off due to a revenue decline, these capital reserves could sustain the City’s deferred maintenance for another 20 years at a spending rate of $6M per year.

The following table provides the policy recommendation going forward. Staff recommends adoption of the City Council’s Fiscal Sustainability Funding Policy beginning Fiscal Year 2020-21.

City
Council’s Fiscal Sustainability Funding Policy
On-Going Revenue/(Expenses)
Estimated
% of
Revenues
FY2022/23 FY2023/24 FY2024/25
General Fund Revenues* $123M $129M $132M
CalPERS pre-fund 2% $2M $3M $3M
Retiree Medical pre-fund 2% $2M $3M $3M
Road Improvements-Deferred
Maintenance** 3% $2M $4M $4M
Parks -Deferred Maintenance** 2% $3M $3M $3M
City Services and Program Increase 3% $3M $4M $4M
Annual Budget Increase $12M $17M $17M
*Revenues defined as total General Fund revenues less Measure V-Sales Tax and Transfers In **For FY2022/23 City Council Provided direction for $5M in deferred maintenance and starting FY2023/24 for $4M (3%) committed to Road Improvements and $3M (2%) to Parks Agenda Item 3.A
June 24, 2022

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Below
is a summary of the General Fund Budget amended for FY 2021/22, proposed for FY 2022/23, and forecasted for FY 2023/24 that includes the above mentioned policies.

Proposed Revenues and Expenditures for the General Fund REVENUES (in thousands)
FY 21/22
Amended
FY 22/23
Proposed
FY 23/24
Forecasted
Property Tax $28,114 $31,090 $32,800
Sales Tax 54,222 69,680 73,512
Sales Tax Measure V 14,000 14,770 15,582
Other Taxes 2,720 2,870 2,956
Other Revenues 18,782 19,578 19,283
TOTAL REVENUES $117,838 $137,988 $144,133
EXPENDITURES (in thousands)
Personnel $48,043 $53,986 $54,780
Purchased Services and Supplies 34,610 40,266 41,135 Utilities 2,171 2,441 2,563
Capital 752 300 -
Debt - - -
TOTAL EXPENDITURES $85,576 $96,993 $98,478
Transfers In $60 $72 $84
Transfers Out (18,654) (28,543) (32,416)
Transfers Out: Measure V Capital (13,670) (12,524) (13,323) TOTAL NET TRANSFERS IN/(OUT) ($32,264) ($40,995) ($45,655) Total Change in Net Position $0 $0 $0
Prior Year Reserves $34,030 $34,030 $34,030
Use of Reserves
Non-Spendable Reserves 62 62 62
Contingency/Emergency Reserves (17%)* 14,548 16,489 16,741 Economic/Budget Stability Reserves (13%)* 11,125 12,609 12,802 Prior Year Carryover
Unassigned 8,295 4,870 4,425
Year End Reserves $34,030 $34,030 $34,030
Agenda Item 3.A
June 24, 2022

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FY 2022/23 P
roposed Annual Operating and Capital Budget Personnel
The FY 2022/23 Budget reflects a realignment of some existing functions and an introduction of two new core departments to build organizational capacity, to be adaptive to community needs, and to meet the City Council’s Strategic Priorities. The City Council has dedicated almost $3.5 million in on-going City services and programs; funding 20 full-time positions in six departments. This includes the addition of five new full-time positions. See Attachment A for a summary table of all the position control roster changes being proposed. A full listing of all the FY 2022/23 positions (including historical staffing levels) can be found in Chapter 3: Fund Budget and in Chapter 4:
within department budgets.

Staff rec
ommends adoption of the FY 2022/23 Annual Operating and Capital Budget including authorizing the Budget Officer to make changes to the position control roster.

General Fund Pers
onnel
 City Manager’s Office:
o Community Engagement
Division added one (1) new full-time position,
Multimedia Communication Assistant to enhance the City’s communication activities to
further public engagement.
o City Manager’s Office added one (1) new full-time position, Executive Assistant to support the second Assistant City Manager.  Human Resources:
o One (1
) new full-time position, Human Resources Analyst I/II to focus on providing professional training
and development programs, and
implementation Diversity, Equity, and Inclusion program.  Mobility and Housing:
o Added two (2)
new full-time positions; the Director of Mobility and Housing that will
oversee the newly formed Mobility and Housing department and the Real Property Agent that will manage the ongoing activities related to the appraisal, negotiation, acquisition, sale, and disposal of the City’s property.  Operations and Utilities:
o Operations Streets and Sidewalks Division added three (3) new full-time positions, Maintenance Worker I/II to address increased maintenance needs that will include street markings, signage maintenance and focus on sidewalk maintenance.
 Parks and
Recreation:
o Parks Maintenance Division added three (3) new positions, one (1) Parks Planning Coordinator to
assist with Parks Projects under the Parks Planning
& Development
Manager and two (2) Maintenance Worker I/II to meet the growing number of City parks.
 Police Department:
o Police Department: Operations Division added five (5) new positions, two (2) Homeless Outreac
h Coordinators as part of the “Familiar Faces Program”
with the goal of utilizing community, County and State resources to divert unsheltered individuals f
rom the streets by offering resources, transportation,
and housing options, two (2) Police Officers to increase visibility and civic engagement,
and one (1) Animal Services Aide for increased support of the Animal Shelter.
o Police Department: Support Services Division added two (2) new positions, Agenda Item 3.A
June 24, 2022

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one (1) Publ
ic Safety Dispatch I/II to meet the increase in sworn officers and one (1) Public Safety Dispatch Supervisor to meet the increase in calls for services and assist with projects.

Non - Gener
al Fund Personnel
 Development Services:
o Planning Division added two (2) new full-time positions, one (1) Associate Planner to focus on permit reviews and enable Senior staff to focus on the General Plan update and one (1) Planning Technician to meet the growing number of permit reviews and maintain service levels.
o Engineering Division added one (1) new full-time position, Associate Engineer to the Traffic section to meet the increase in Traffic and Safety projects.
 Innovation and Technology Department:
o Added one (1) new full-time position, Chief Innovation Officer as oversight and management of the new Innovation and Technology Department.  Operations and Utilities:
o Ops Community Preservation Unit Division added two (2) new full-time positions, Maintenance Worker I/II to meet the increase of clean ups, illegal dumping, and blight related tasks.
o Operations & Utilities Admin Division added one (1) new full-time position, Director of Operations and Utilities to oversee and direct all activities of the Operations and Utilities Department.

Measure V Funds
Committed for FY 2021/22 and FY2022/23
On February 22, 2022, the City Council held a workshop to review the Measure V priorities and project timelines of the amenities based on available funding. The City Council gave direction to staff on project delivery for the Measure V major amenity projects.

The Parks
Maintenance Division has a need of project support to address the increased volume of work. In addition to the five Measure V projects (the Aquatics Center, Legacy Fields Phase 1E, Nature Park Phase 1 Design, Ritter Family Ball Park Design and the Multi-Gen Rec Center) there are several smaller projects that are in the queue. Included in the FY 2022/23 Annual Operating and Capital Budget personnel is the addition of the Parks Planning Coordinator, funding for this position will come from Measure V’s allocation for staffing.

Below is
a summary of the direction received from the City Council at the meeting that have been incorporated into the Amended FY 2021/22 Annual Budget and Proposed FY 2022/23 Annual Budget. Staff recommends adoption of the Measure V Committed Projects for FY 2021/22 and FY 2022/23, including the addition of a Parks Planning Coordinator for operations and maintenance funding.
 Multi-Gener
ational Recreational Center: allocate $40 million ($31 million from Measure V and $9 million other sources) to the Multi-Generational Recreation Center project and proceed with one phase only of construction, which includes expansion of debt financing of the $31 million.

Agenda Item 3.A
June 24, 2022

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 Aquatics Center: commit Measure V reserves to the Aquatic Center’s $55 million (City) budget and avoid
phasing of the project.
 Ritter Family Ball Park: commit $3 million in Measure V funds to begin the feasibility and design study of Ritter Family Ball Park to be included in the FY2022/23 Capital Budget.
 Nature Park:
commit $1 million in Measure V funds for the design of phase 1 of the Nature Park to be included in the FY2022/23 Capital Budget.

Committed Fund Balances (GASB 54) for Fiscal Year Ending June 30, 2022 In preparation for closing fiscal year ending June 30, 2022, staff reviews estimated fund balances and designates funds that have been committed for use in future periods. The fund balance policy requires that the City Council take formal action prior to the end of the fiscal year to commit fund balances of governmental funds (General Fund, Special Revenue Funds, Capital, and Debt funds). This item requests Council to approve the committed fund balances for fiscal year ending June 30, 2022. Upon Council approval, these funds will be appropriated to the next fiscal year in FY 2022/23, General Fund $736,937 and Other Governmental $1,450,867. Staff recommends adoption of the Committed Fund Balances for f iscal ye ar ending June 30, 2022. (See Attachment C for details)
Annual Adjustment to Appropriations Limit (Gann Limit)
Article XIIIB of the California Constitution, informally known as the G ann Appropriations Lim
it, limits the total amount of appropriations in any fiscal year derived from the “proceeds of taxes.” The article further provides that appropriations from designated reserve funds are not appropriations from the proceeds of taxes. Additionally, appropriations from sources other than taxes are not controlled by the limit. The calculated appropriation limit for FY 2022/23 is $85.5 million. Based on the budget adopted on June 24, 2022, $83.2 million in appropriations are subject to the limit, and the City is currently $2.5 million below the limit. Staff recommends adoption of the Annual Adjustment to Appropriations Limit (Gann Limit) pursuant to Article XIIIB of the California State Constitution establishing the limit for FY 2022/23.

STRATEGIC PLAN
This agenda item supports Governance Strategic Goal 3: Ensure Short and Long-term Financial Sustainability.

FISCAL IMPAC
T
The FY 2022/23 proposed operating and capital budget appropriations total approximately $352.2 million, including $22.9 million in Transfers Between funds and capital improvements of $93 million. The Net Position increased $71.2 million after the capitalization of $93 million in capital improvements. Each year, the City of Tracy must formally adopt, by resolution, the annual operating, debt, and capital financial plans of each entity and include appropriations presented to the City Council.

Agenda Item 3.A
June 24, 2022

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RECOMMENDATION
Staff recommends the City Council conduct a public hearing, and upon conclusion, adopt the following resolutions:
1) Adopt the Cit
y of Tracy fiscal years (FY) 2022/23 annual operating and capital budget and authorize the budget officer to amend the city’s position control roster for FY 2022/23;
2) Adopt a fiscal sustainability funding policy for the City of Tracy and apply such policy retroactively to the amended Fiscal Year 2021/22 Annual Budget; 3) Authorize the commitment of Measure V funds for specified purposes, for the amended Fiscal Year 2021/22 annual budget and the proposed Fiscal Year 2022/23 Annual Budget;
4) Adopt committed fund balances (GASB 54) for Fiscal Year ending June 30, 2022 in compliance with statement 54 of the Governmental Accounting Standards Board; and
5) Establish Fiscal Year 2022/23 appropriations limit pursuant to article XIIIB of the California state constitution.

Prepared by:

Felicia Galindo, Budget Officer
Reviewed by:

Karin Schnaider, Finance Director
Midori Lichtwardt, Assistant City Manager
Approved by: M
ichael Rogers, City Manager

ATTACHME
NTS
Attachment A – FY2022/23 Staffing – Position Control Roster Changes Attachment B – Budget Message
Attachment C – Committed Fund Balances for Fiscal Year Ending June 30, 2022 Attachment D – FY 2022/23 Appropriations Limit Calculation The City’s Proposed FY 2022/23 Annual Operating and Capital Budget can be located at the City Clerk’s Office in City Hall and on the City of Tracy Website. https://www.cityoftracy.org/our-city/departments/finance-department/fy-2022/23-budget- draft
Department Division Position Amount General
Fund Other Fund
City Manager's Office Community Engagement Multimedia Communications Assistant 108,000 108,000 City Manager's Office City Manager Executive Assistant 126,000 126,000 Development Services Planning Planning Technician 131,000 131,000 Development Services Planning Associate Planner 160,000 160,000 Development Services Engineering Associate Engineer 187,000 187,000 Human Resources Human Resources Human Resources Analyst II 154,000 154,000 Innovation & Technology Innovation & Technology Chief Innovation Officer 220,000 220,000 Mobility & Housing Mobility & Housing Director of Mobility and Housing 360,000 180,000 180 000 Mobility & Housing Mobility & Housing Real Property Agent 205,000 205,000 Operations & Utilities Ops Streets & Sidewalks Maint Worker I/II 131,000 65,500 65, 500 Operations & Utilities Ops Streets & Sidewalks Maint Worker I/II 131,000 65,500 65, 500 Operations & Utilities Ops Streets & Sidewalks Maint Worker I/II 131,000 65,500 65, 500 Operations & Utilities Ops Community Preservation Unit Maint Worker I/II 131,000 131,000 Operations & Utilities Ops Community Preservation Unit Maint Worker I/II 131,000 131,000 Operations & Utilities Operations & Utilities Admin Director of Operations & Utilitites 360,000 90,000 270 ,000 Parks & Recreation Parks Maintenance Maint Worker I/II 131,000 131,000 Parks & Recreation Parks Maintenance Maint Worker I/II 131,000 131,000 Parks & Recreation Recreation Management Parks Planning Coordinator 154,000 154,000 Police PD Operations Homeless Outreach Coordinator 129,000 129,000 Police PD Operations Homeless Outreach Coordinator 129,000 129,000 Police PD Operations Police Officer 196,000 196,000
Police PD Operations Police Officer 196,000 196,000
Police PD Operations Animal Services Aide 88,000 88, 000 Police PD Services Public Safety Dispatch II 149,000 149,000 Police PD Services Public Safety Dispatch Supervisor 164,400 164,400 Totals: 2,526,900 1,606,500
Department Division Old Position
City Manager's Office Cultural Arts Box Office Coordinator Development Services Engineering Principal Civil Engineer Development Services Engineering Senior Civil Engineer (UT) Operations & Utilities OP & UT Admin Director of Public Works Operations & Utilities OP & UT Admin Director of Utilities Operations & Utilities OP & UT Admin Executive Assistant Operations & Utilities PW STREETS Maint Worker I/II
Operations & Utilities PW UTILITIES MAINTENANCE Utility Maintenance Supervisor Senior Maintenance Worker
Utility Line Supervisor
New Position
FY2022/23 Re-Allocated Positions
FY 2022/23 Proposed Annual Operating and Capital Budget Personnel Cultural Arts Marketing Coordinator
Assistant City Engineer
Utility Planning Engineer
Deputy Director of Public Works
Deputy Director of Utilities
Management Analyst I/II

ATTACHMENT A
FY 2022/23 Budget Message
City of Tracy
333 Civic Center Plaza
Tracy, CA 95376
CITY MANAGER’S OFFICE
MAIN 209.831.6000
FAX209.830.6120
www.cityoftracy.org
June 24, 2022
Honorable Mayor City Council:

I am pleased to present the proposed Fiscal Year (FY) 2022/23 Annual Operating and Capital Budget to the City Council for consideration and adoption. The proposed operating budget reflects the City’s commitment to provide a high level of service to residents and businesses, while providing a foundation that builds on the City’s long-term financial sustainability initiatives. More important, the budget is a numerical representation of the Council’s goals and priorities and drives the City’s service delivery plan for the next fiscal year.

The goal of the City’s Annual Operating and Capital Budget is to provide a plan that allocates resources to the needs and desires of Tracy’s residents. It balances City revenues and costs with community priorities and requirements. In preparing the FY 2022/23 Budget, we reviewed the FY 2021/22 amended budget and estimated the expenditures and revenues anticipated for the upcoming year, FY 2022/23.

We held three budget workshops with the City Council and four meetings with the City Council’s Ad-Hoc Fiscal Sustainability Committee. Beginning December 7, 2 021, the Finance Departments presented a revised FY 2021/22 financial outlook for the City Council. With direction from the City Council’s Ad-Hoc Fiscal Sustainability Committee (Ad-Hoc), we returned on March 22, 2022 with various options for fiscal resiliency and operational efficiencies to be considered in the development of the FY 2022/23 budget.

Our focus during the development of the budget was how to best restore key services to the community following the two-year impact of the global pandemic and how to initiate new core services to meet current expectations and plan for future service level demands. From time to time, it is important to pause and evaluate current service delivery models to determine if they are timely, efficient, and, most importantly, effective. Service delivery is important because it helps provide the residents and businesses with amenities they want or need by linking them to programs and resources that provide those services. In an effort to be innovative, we must foster an organization that can respond to community needs, bring pioneering initiatives, and strives for greater success. The FY 2022/23 Budget reflects a realignment of some existing functions and an introduction of two new core departments to build organizational capacity, to be adaptive to community needs, and to meet the City Council’s Strategic Priorities.

Reorganization Benefits: From time to time, departments, sections, even whole organizations need to realign staff roles to account for shifts in skills, experience, and function. Restructuring can be a valuable and necessary step to refocus the organization's goals and objectives and usually involves

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ATTACHMENT B
FY 2022/23 Budget Message

Page 1 ends

major changes for the organization in multiple departments and locations including procedures and processes. Theoretically, restructuring leads to a more efficient and modernized entity by strategizing on the opportunity to reposition the City for what it may look like going forward or in the future. These changes take time and constant reevaluation to ensure the goals and objectives of the reorganization are met. This will also make sure that value-added activities that were intended with the merged or shifted roles continue to enhance and expand City services.

The Op
erations and Utilities Department is a new department formed in FY 2022/23 through the merging of two departments, Public Works (now Operations) and Utilities. The merging of the departments is intended to better align resources and funding to more effectively respond to the operational and maintenance needs of the City’s infrastructure. The merger will improve collaboration and efficiencies, particularly with the on-going growth of the City’s residential and commercial development, the expansion of the Utility Treatment Plants, and extension of the supporting systems, including utility lines, roadways, and more. In addition, the City is committing over $150 million in capital funds to build several City amenities to enhance the quality of life and economic development within the City of Tracy. Tracy is anticipated to have a population of over 100,000 in the next few years and over 130,000 by 2030. This growth will put new demands on the infrastructure and the resources that support and maintain these assets. The City is choosing to reorganize in advance of these demands and realign staff roles to account for shifts in skills, experience, and functions that will be needed to meet these long-term pressures through effective partnership and timely communication between the two major divisions, Operations and Utilities.

Par
t of the merging of the departments is intended to reduce duplication and redundant activity. Some of these efficacies will occur through the merging of the administrative staff between departments. For example, the Operations and Utility Department will improve efficiencies through the shared use of one computerized maintenance management system (CMMS) to help manage assets, schedule maintenance, and track work orders. Through the software, the Operations and Utilities Department can optimize the utilization and availability of physical equipment like vehicles, machinery, communications, plant infrastructures and other assets, generate reports across maintenance categories such as asset availability, materials usage, labor and material costs, supplier assessments, create annual performance metrics, and more.

Oth
er benefits of a citywide reorganization are the resourceful alignment of tasks to add value to existing key programs or provide sprint capacity to respond to community demands. For example, the Electricians will now report to the Operation Division where their skills and function align better to the those performed in Building Maintenance. Other examples of the citywide reorganization include moving the Parks Maintenance and Landscape Architect into the Parks and Recreation Department where its functions better align with the goals and objectives of the Parks Planning Division and amenities goals of the City Council. These tasks are now reflected in the Parks and Recreation Department. Another alignment of functions was the shift of Utility Engineers to Development Services- Engineering Division to expand the resources and scope of this division and avoid redundancy of tasks.

New Co
re Services: In addition to the realignment of existing functions, the FY 2022/23 budget reflects the funding of new core services in the formation of two new City departments, the Innovation and Technology Department and Mobility (Transportation) and Housing Department. The Innovation and Technology Department is an expansion of the existing Information Technology Division from internal customers to include citywide service deliveries, such as broadband. The Innovation and Technology (IT) FY 2022/23 Budget Message

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Department will develop the technology infrastructure and capabilities to provide a reliable, agile, and secure digital environment throughout the City of Tracy.

The
Mobility and Housing Department is a new core service provided in FY 2022/23 in the City of Tracy that plans, manages, and oversees the daily functions, operations, and activities of the City’s Mobility (Transportation) Services, including Airport and Transit, and Housing and Homeless Services, Economic Development Services. The City of Tracy, not unlike many other areas in California, has experienced an increase in the number of unsheltered or homeless individuals over the past several years. From 2017 to 2019, homelessness across San Joaquin County increased by 170%, and in Tracy, the homeless population grew from 90 unsheltered individuals in 2017 to 155 in 2019. To address the issues surrounding homelessness strategically, both regional and Tracy-specific strategic plans were drafted in the Fall 2019. The Tracy City Council’s Committee on Homelessness provided guidance to inform the development of Tracy's Strategic Plan to End and Prevent Homelessness. These strategies revolve around leveraging regional planning, policy development, affordable housing siting, transportation planning, rural planning, and affordability awareness to develop short- and long-term strategies to improve access to affordable housing and transportation. These strategies need to have innovative and long-term solutions, such as having a vibrant and thriving job force, a robust transportation system, as well as housing affordability strategies.

The
FY 2022/23 Annual Operating and Capital Budget reflects the City Councils desires to expand City services while strengthening our fiscal resiliency. The City Council dedicated almost $3.5 million in on- going City services and programs; funding 20 full-time positions in six departments. The additional staffing will address park planning and maintenance, street repair and maintenance, Police Animal and Dispatch Services, homeless services, and more. In addition, the FY 2022/23 General Fund budget will begin contributing $4 million to prefund to employee retirement benefit liabilities related to pension and medical leave balances. It is projected the City will achieve 85% funded status in the next five years.

In addition, the City increased capital deferred maintenance funding, setting aside almost $15 million for current and future deferred maintenance and capital improvement projects, such as road, building, and park improvement projects. It is estimated that the City could potentially set aside $120M in future Capital funding in addition to the $6M planned over the five-year period. Should this funding drop off due to a revenue decline, these capital reserves could sustain the City’s deferred maintenance for another 20 years at a spending rate of $6M.

The
FY 2022/23 Annual Operating and Capital Budget offers growth, innovation, and fiscal sustainability that will benefit the residents and community it serves. The budget will support enhanced services, new core programming, and policy initiatives that will strengthen the City’s position as a place to live, play, and work.

FY 2022/23 Budget Message

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Budget Summary
The FY 2022/23 proposed operating and capital budget appropriations total approximately $352.2 million, including from $22.9 million in Transfers Between funds and capital improvements of $93 million. The Net Position increased $71.2 million after the capitalization of $93 million in capital improvements.

FY 2022/23

PROPOSED BUDGET
General Fund 103,665,324
Special Revenue Funds 79,675,526
Capital/Debt 39,886,629
Internal Services Funds 21,349,742
Enterprise Funds 84,726,529
Total Expenditures (without Transfers) 329,303,750
Transfers Between Funds 22,944,635
Total Expenditures (with Transfers) 352,248,385
FY 2022-2 3 Proposed General Fund
Sho
rtly after the adoption of the FY 2021/22 Operating and Capital Budget, the City received the January-March 2021 Sales Tax (Bradley Burns State Sales Tax) disbursement from the State of California Department of Tax Franchise Administration (CDTFA), which resulted in a significant change in the City’s estimated revenues. The result was due to a recent change in tax reporting by a predominant sales tax producer. This reporting change shifted the tax allocation from a statewide allocation through the General Fund
31%
Special
Revenue Funds
24%
Capital/Debt
12%
Internal
Services Funds
7%
Enterprise
Funds
26%
FY 2022/23 PROPOSED BUDGET
FY 2022/23 Budget Message

Page 1 ends

County sales tax pool where the tax was distributed pro-rata throughout the State to a local sales tax allocation based upon the businesses’ point-of-sale or fulfillment of the sale. The change will have a significant and material impact on the City’s General Fund revenues; nearly doubling the current Sales Tax revenues for the City. The estimated revenues from the reporting change that resulted in a revenue growth of over $5 million a quarter. In FY 2021/22, the General Fund estimated Sales Tax is expected to be $25 million over the adopted budget. With new e-commerce businesses expected to open in FY 2022/23, the Sales Tax forecast is expected to grow an additional $12M next year plus the economy growth of 5% for the next 2-3 years.

At th
e close of FY 2021/22, the City will have a projected uncommitted fund balance over $30 million.

During the December 7, 2021, the City Council approved the recommendations from City Council’s Fiscal Sustainability Ad-Hoc Committee to begin setting aside funding for pre-funding pension and retiree medical benefits, approximately $2M. Staff projects an additional $4M in revenues from Sales Tax and recommends increasing the pension/medical retirement benefit pre-funding to $4M annually. The forecast continues this trend for five years, setting aside $20M for staffing employee benefits and accelerating pension funding to mitigate future inflationary assumptions. The pre-funding drops off in FY 2027 when Sales Tax is projected to decline.

On D
ecember 7, 2021, Ad-Hoc Committee’s update to the City Council, proposed fiscal sustainability strategies were recommended towards utilization of the General Fund surplus. This included $1M CalPERS (1% of GF revenues), $1M Retiree Medical (1% of revenues) $3M deferred Maintenance (3% of revenues) and $3M program increase (3%of revenues), for a total recommended $8M budget increase.

On M
arch 22, 2022, the first draft of the General Fund Operating budget was reviewed by City Council.

In the amended General Fund budget for FY 2021/22, revenue estimates were coming in $4M higher.

Staff recommended increasing the deferred maintenance by $2M and pension/medical leave retirement pre-funding by $2M. City Council agreed and provided further direction for on-going funding for deferred maintenance to include parks in the amount of $3M and $4M for Road Improvements beginning in 2023/24. The following table provides the policy recommendation going forward as:

Cit
y Council’s Fiscal Sustainability Funding Policy
On-Going Revenue/(Expenses)
Estimated
% of
Revenues
FY2022/23 FY2023/24 FY2024/25
General Fund Revenues* $123M $129M $132M
CalPERS pre-fund 2% $2M $3M $3M
Retiree Medical pre-fund 2% $2M $3M $3M
Road Improvements-Deferred Maintenance** 3% $2M $4M $4M Parks -Deferred Maintenance** 2% $3M $3M $3M
City Services and Program Increase 3% $3M $4M $4M
Annual Budget Increase $12M $17M $17M
*Revenues defined as total General Fund revenues less Measure V-Sales Tax and Transfers In **For FY2022/23 City Council Provided direction for $5M in deferred maintenance and starting FY2023/24 for $4M (3
%) committed to Road Improvements and $3M (2%) to Parks FY 2022/23 Budget Message

Page 1 ends

General Fund Proposed FY 2022/23 Budget
Revenues (in thousands)
FY 2022/23
Proposed
FY 2023/24
Forecasted
FY 2024/25
Forecasted
Property Tax $31,090 $32,800 $33,784
Sales Tax 69,680 73,512 75,718
Sales Tax Measure V 14,770 15,582 16,050 Other Taxes 2,870 2,956 3,044 Other Revenues 19,578 19,283 19,775 Total Revenues $137,988 $144,134 $148,372
Expenditures (in thousands)
Personnel $53,986 $54,780 $55,718
Purchased Services and Supplies 40,266 41,135 42,025
Utilities 2,441 2,563 2,640
Capital 300 0 0
Total Expenditures $96,993 $98,478 $100,383
COU

NCIL PRIORITIES
The
proposed budget echoes our continued investment in City services to our residents and businesses, but also to those we invite to work and/or visit the City of Tracy. A number of economic development efforts have been a City focus for several years, with job creation and growth being at the forefront. This continues to be a priority for our City, including ensuring a positive working relationship with the business community, so that the City’s business attraction efforts successfully bring targeted industries Property Tax
23%
Sales Tax
50%
Sales Tax Measure
V
11%
Other Taxes
2% Other Revenues
14%
FY 2022/23 Proposed Revenues
FY 2022/23 Budget Message

Page 1 ends

and retailers to our community. Tracy strives to provide services that promote a safe community for our residents, businesses, and visitors, which remains a high priority to our City Council and City Administration. The financial plan reflects the desired operational outcomes of each City department as they relate to the City Council’s 2021-2023 Strategic Priorities:
• Eco
nomic Development
To enhance the competitiveness of the City while developing a strong and diverse economic base. • Public Safety
To enhance community safety by promoting a responsive public safety system that includes civic engagement and partnerships, community involvement, public education and prevention, intervention, and suppression services that meet the needs of our community, inclusive of businesses and residents. • Quality of Life
To provide an outstanding quality of life by enhancing the City’s amenities, business mix and services, and cultivating connections to promote a positive change and progress in our community. • Governance
To retain and attract new talent, enhance fiscal sustainability, improve the use of technology, and enhance transparency for the betterment of the Tracy community.

ECONOMIC INDICATORS
Des
pite national worries about economic uncertainty, inflation, and rising energy prices, Tracy continues to thrive with a rapidly growing economy and robust development activity. In 2021, the City of Tracy experienced unparalleled growth in residential and industrial development, fueled by housing demands and growth in e-commerce and logistics. For example, Prologis is completing its 800,000-square foot state of the art e-commerce facility called Big Bird. With Amazon as the tenant, the building reflects cutting edge supply chain technology, robotics, and design features. The City’s International Park of Commerce (IPC), an 1,800-acre master planned business park and regional cradle of economic activity, is more than half built out. As the largest asset in Prologis’ global portfolio and one of the largest business parks across the Country, it is home to Amazon, FedEx, Medline, Smuckers, Thermo Fisher Scientific and Zinus. New businesses added in 2021 include Ghirardelli and Home Depot. Also, in 2021, Prologis built a new office building. This 35,000 square foot building is the first office development in Tracy since 2004 and will be the first office building in Prologis’ global portfolio. Under development is a retail/hotel site adjacent to the IPC area that will generate additional tax dollars to support City services. At buildout, IPC is expected to support 30,000 jobs.

Tracy
’s economy is diverse with over 3,000 businesses. In addition to many supply chain and e- commerce businesses in its business parks, over half of the businesses are considered small businesses, which are the backbone of our community. The City of Tracy has been fortunate to experience a high number of new businesses since the beginning of the pandemic, which is reflective of our local entrepreneurial spirit and desire to invest in our community. As a result, Tracy’s employment reached a record level of 43,900 by April 2022, while unemployment rate is at a historic low of 3.1%, below that of the County and the State.

Tracy
has aspired to be a regional hub for retail, dining, and entertainment due to its strategic location between the Bay Area and the Central Valley, located at the confluence of three major highways. With FY 2022/23 Budget Message

Page 1 ends

the City’s population approaching 100,000, retail continues to be attracted to this activity hub with the highest incomes and per capita sales in San Joaquin County. A number of factors contribute to this success, as described below.
 Dynam
ic Access: Tracy is centered in the triangle formed by three major interstate highways: I- 205, I-580 and I-5. The City’s smart planning resulted in the creation of freeway-oriented retail opportunities with access to customers in Tracy as well as other communities in the region. I-205 alone supports 152,000 annual average daily trips with expansion efforts in the works.  Rapid po
pulation growth: Tracy has experienced significant residential growth over the past 20 years that has outpaced that of the Bay Area. As a result, Tracy has a growing population with increasingly disposable incomes. Tracy’s population has grown 70% over the last 20 years with the University of Pacific forecasting Tracy to add over 32,000 residents by 2040. Retailers frequently seek areas that forecast rapid population growth, as it translates into increased sales from the retailer attraction standpoint.
 Dive
rse retail locations: Tracy has 4.6 million square feet of retail space. The space is scattered across the City with the largest cluster in the I-205 area and in downtown. The 750,000 square- foot West Valley Mall provides a variety of attractive shopping, dining, and entertainment options, including a 14-screen movie theater. Other retail options include the Tracy Pavilion, McKinley Village Shopping Center, Northgate Village, Red Maple Village and Gateway Plaza.

Additionally, new retail development is in the pipeline at the International Park of Commerce and in South Tracy along Tracy Boulevard.
 Str
ong employment and income growth: Tracy has enjoyed strong employment increases and low unemployment rates since 2010 until the start of the COVID-19 pandemic. After a short-term drop in employment, the local economy started to recover in 2021. Based on projections from the University of Pacific, Tracy is forecasted to add over 11,000 jobs by 2040. Tracy’s median household incomes increased from about $62,800 in 2000 to $92,000 in 2020, a growth rate of 47%. This reflects improvement in the quality of jobs in Tracy as well as broader economic opportunities advancement in the region.
 Wor
k from home transition: Since the beginning of the COVID-19 pandemic, a large share of the labor force shifted to working from home. Because a notable share of Tracy’s jobs is in government, health and education, a transition to remote working options has enhanced overall resident time spent in the City, increasing support for local retail.  Pro-busine
ss environment: The City implemented the Retail Incentive Program, designed to encourage the private sector to invest in Tracy. It consists of a citywide retail incentive program, West Valley Mall revitalization program and hospitality, entertainment, and recreation program.

These programs provide a tiered sales tax rebate based on eligible sales, building and plan fee rebates, and direct financial assistance subject to Council discretion.

FIS

CAL CHALLENGES AND RECOVERY
Thi
s balanced budget is presented with optimism. The economy is recovering both in housing prices that bolster property tax and diversification in commercial and retail that grows and strengthens our sales FY 2022/23 Budget Message

Page 1 ends

tax revenue. That being said, the economy has natural growth and contractions that are outside of the City’s control. Even with solid financial planning and long-term forecasting, not all future outcomes cannot be predicted. Knowing that, the City has positioned itself well by building financial reserves, adopting strong fiscal policies, and passing important revenue measures to support City services.

However, even with these proactive steps, the City, like other agencies, will continue to be faced with unmet needs in an environment where resources are limited.

In F
Y 2021/22, the City received approximately $15 million dollars in Federal American Rescue Plan Act (ARPA) funding to address challenges resulting from the pandemic and provide additional relief for residents. These funds have been allocated to provide funding for temporary emergency housing, assistance to downtown businesses, utility bill assistance for residents, and the reconstruction of Bessie Avenue.

An unfunded mandate is, for the most part, a statute or regulation that requires the City to perform or deliver services with no money allocated to fulfill the imposed requirement, such as Water and Organic Recycling. Although the state is required to suspend any mandate that is not funded during a given budget cycle, cities usually have little choice but to continue the activities associated with the unfunded mandates. In many cases, the program is already in operation when a mandate is suspended. In other cases, local compliance efforts must be maintained to meet public service expectations.

LOOKING FORWARD
The pr
oposed FY 2022/23 Annual Operating and Capital Budget reflects the Council’s vision for the community and the values that guide the Council’s policy decisions. We are fortunate that our City employees embody the principles hard work, customer service, and professionalism. It is through the organization’s strong work ethic and sense of pride that keeps the wheels of the City turning and maintains service levels to preserve Tracy’s high quality of life.

Tracy
's tradition of sound fiscal management has served the City well, especially through the global pandemic. FY 2022-2023 will be a turning point as we begin to focus on strategies that build on and maintain the City’s solid financial foundation, while advancing Measure V amenities forward. This effort will rely heavily on a continued partnership with the community to support key priorities and provide desired service levels.

The
proposed budget funds core services, implements Council priorities and allows us to plan for the future while maintaining General Fund reserves to weather future economic cycles. I am confident that we as a community will collectively position Tracy to capitalize on opportunities that will advance the City’s vision of strong and strategic economic development, enhanced public safety, outstanding quality of life, and good governance. Continued commitment to this strategy will ensure that the City can sustain critical community services and programs in the future.

Sincerely,
Mich
ael Rogers
City Manager
GASB 54 Committed Fund Balance for FY2021-2022

DEPARTMENT FUND FUND NAME VENDOR DESCRIPTION BALANCE

GENERAL FUND
City Attorney's Office 101 General Fund Meyers Nave Cannabis Related Legal Services 5,563 City Attorney's Office 101 General Fund Bur
ke, Williams & Sorensen Can
nabis Related Legal Services 9,901
City Manager's Office 101 General Fund Grainger Inc Display case 978 Econ Development 101 General Fund Tripepi Smith
FY 21-22 Marketing &
Communication Services (Tourism
Grant)
39,306
Econ Development 101 General Fund American City Business Journals Inc
Sacramento Business Journal
Advertising 15,000
Finance 101 General Fund NBS Financial Operations Analysis 385 Police 101 General Fund Axon Enterprise (9) BWC & Tasers for new employees 35,526 Police 101 General Fund Axon Enterprise (6) BWC & Tasers for new employees 24,009 Police 101 General Fund Geo-Comm Inc Geo Comm GIS Upgrade 14,276 Police 101 General Fund Stanislaus County sheriff's Dept Police Academy for recruits 24,000 Public Works 101 General Fund Cornerstone Environmental Contractors Inc IGF-Hoyt Booster Pump EST 6/22 12,990
Public Works 101 General Fund 72 Hr. LLC Fleet - x2 Patrol Vehicles 40,363 Public Works 101 General Fund Motorola Solutions Inc Fleet - x2 Patrol Vehicles Radio 8,999 Public Works 101 General Fund Tracy Sign Inc Fleet - x2 Patrol Vehicles Dec 762 Public Works 101 General Fund Statewide Traffic Safety and Signs Inc Fleet - Thermo Cart 3rd Qt Ask 87,746
Public Works 101 General Fund 72 Hr. LLC Fleet- Ford Escape Homeless Manager 30,245
Public Works 101 General Fund Derotic LLC Fleet - x2 Patrol Vehicles Pai 26,516 Public Works 101 General Fund Ron Dupratt Ford, Inc Ford F550 Flat bed for Public Works (Street Markings) 88,200
Police 115 Federal Law
Enforce Grant
Public Safety Family Counseling
Group Inc
Critical Incident Stress Mgmt &
Wellness 46,510
Police 115 Federal Law
Enforce Grant Geo-Comm Inc Geo Comm GIS Upgrade 13,558
City Attorney's Office 125 Central Admin Meyers Nave Legal Services 4,888 City Attorney's Office 125 Central Admin Colantuono, Highsmith, et al. Special Counsel Legal Services 9,895 City Attorney's Office 125 Central Admin Daniel P. Doporto Special Counsel Legal Services 5,840 City Attorney's Office 125 Central Admin Colantuono, Highsmith, et al. Legal Services - Tracy Rural v. LAFCO 3,534 City Attorney's Office 125 Central Admin Bur
ke, Williams & Sorensen Spec
ial Counsel Legal Services 11,517
City Attorney's Office 125 Central Admin Renne Public Law Group, LLP Legal Services - Labor & Employment 7,224 Finance 125 Central Admin HdL Companies Business License, Cannabis and Transient Occupancy Tax (TOT) 16,750
Finance 125 Central Admin HdL Companies
Cannabis Management Program
Consulting, Ordinance, Applications,
Etc.
4,200

ATTACHMENT C
GASB 54 Committed Fund Balance for FY2021-2022

DEPARTMENT FUND FUND NAME VENDOR DESCRIPTION BALANCE
Finance 125 Central Admin Goodwin Consulting Group Inc
Tracy Hills Tax Study and Fire
Revenue Projections New Fire
Stations
40,016
Finance 125 Central Admin MacLeod Watts Inc GASB 75 Actuarial Report FY End 6/30/22 1,950
Finance 125 Central Admin Lew Edwards Provide Lead Consulting and Communications Services for the City 42,000
Finance 125 Central Admin Bartel Associates LLC Actuarial Consulting Services - CalPERS Misc Plan
10,500
Finance 125 Central Admin Bartel Associates LLC Actuarial Consulting Services - CalPERS Safety Plan
20,000
HR 125 Central Admin Legal Assistance Christopher K Boucher 17,398 HR 125 Central Admin Workplace Investigations Van Dermyden Maddux Law Corporation
16,390
Total General Fund 736,937

OTHER GOVERNMENTAL FUNDS
Public Works 206 Engineering 72 Hr. LLC Fleet- Ford Escape Development Services
30,245
Public Works 206 Engineering 72 Hr. LLC Fleet- New Ford Rangers x2 for 35,856 Development
Services
207 Planning De Novo Planning Groups Transit Oriented Delvelopment Planning Services
695,265
Development
Services
207 Planning First Carbon Solution Digital Freeway Signs 12,292 Development
Services
207 Planning Placeworks Inc Housing Implemenation Talks 171,068 Utilties 207 Planning CH2M Hill Inc Professional Services for Desalination Project @ WWTP
17,755
Police 231 Asset Forfeiture Geo-Comm Inc Geo Comm GIS Upgrade 25,000 Econ Development 268 CBDG McHenry House CDBG FY 2019-2020 (Public Facility) 11,870 Econ Development 268 CBDG Tracy Interfaith Ministries 2020-2021 CDBG Grant Recipient 12,000 Econ Development 268 CBDG Boys & Girls Club of Tracy 2020-2021 CDBG Grant Recipient 8,000 Econ Development 268 CBDG Tracy Community Connections
Center Inc.
2020-2021 CDBG Grant Recipient 7,500
Econ Development 268 CBDG Boys & Girls Club of Tracy 2020-2021 CDBG Grant Recipient - Facility Improvements
354,438
Econ Development 268 CBDG Boys & Girls Club of Tracy 2021-2022 CDBG Grant Recipient 8,000 Econ Development 268 CBDG Tracy Interfaith Ministries 2021-2022 CDBG Grant Recipient 12,000 Econ Development 268 CBDG Coalition of Tracy Citizens to Assist the Homeless
2021-2022 CDBG Grant Recipient 6,973
Econ Development 268 CBDG Women's Center-Youth &
Family Services
2021-2022 CDBG Grant Recipient 12,000
Econ Development 268 CBDG Tracy Community Connections
Center Inc.
2021-2022 CDBG Grant Recipient 8,000
Public Works 271 LMD Central Control Systems LTD LMD-controller replacement 8,412 Public Works 271 LMD Central Control Systems LTD LMD-controller replacement 7,115 Public Works 271 LMD Central Control Systems LTD LMD-controller replacement 6,079 Public Works 271 LMD Central Control Systems LTD LMD-Damage to irrg controller 1,000 Total Other Governmental Funds 1,450,867
Description Amount
2020-21 Appropriations Limit 79,006,614$
2022-23 City population 1.0098
2022-23 Per capita income 1.0755
2022-23 Appropriations Limit 85,804,336$
2022/23 Projected Tax Revenues
Description Amount
Property Taxes 31,090,487$
Sales & Use Tax 69,680,000
Sales & Use Tax 14,770,000
Transient Occupancy Tax 1,793,500
Franchise Fees 4,170,506
Business License Tax 1,076,197
Real Property Transfer Tax 1,389,361
Interest Earnings 0
2022-23 Projected Qualifying Expenses
Exemptions
Debt Service (2,672,142)
Qualified Capital Outlays (38,000,000)
Appropriations Subject to Limitation 83,297,909$
Margin 2,506,427$

CITY OF TRACY
2022/23 Appropriations Limit Calculation

ATTACHMENT D
PROPOSED FY 2022-2023 ANNUA L

OPERATING AND CAPITAL BUDGET
JUNE 24, 2022

ATTACHMENT E
2 Presentation Outline
 Proposed FY 2022/23 Citywide
Ann
ual Operating and Capital
Budget
 Proposed FY 2022/23 General
Fund Annual Operating and
Capital Budget
 Fiscal Sustainability Funding
Policy
 FY 2022/23 Proposed Annual
Operating and Capital Budget
Personnel
3 Presentation Outline
 Measure V Funds Committed
for
FY 2021/22 and FY2022/23
 Other Action Items
 Committed Fund Balances GASB
54  Appropriations Limit (Gann
Limit)
 Recommended Council Action
4 Proposed FY
2022/23
Citywide
Annual
Operating and
Capital Budget

Citywide Budget
FY 2022/23
Proposed
Budget
General Fund 103,665,324
Special Revenue Funds 79,675,526
Capital/Debt 39,886,629
Internal Services Funds 21,349,742
Enterprise Funds 84,726,529
Total Expenditures (without
Transfers) 329,303,750
Transfers Between Funds 22,944,635
Total Expenditures (with
Transfers) 352,248,385
5 Proposed
FY 2022/23
General Fund
Budget
6 City Council’s Fiscal Sustainability
Funding Policy
• City Council direction received March 22, 2022, as
reco
mmended by CC Fiscal Sustainability Ad-Hoc
Committee:
• $3.5M - City Services and Program Increase
• $4M - Pre- fund CalPERS and Retiree Medical
• $5M - Deferred Maintenance
7 On-Going Revenue/(Expenses)
Estimated
% of
Revenues
FY
2022/23
FY
2023/24
FY
2024/25
General Fund Revenues $123M $129M $132M
CalPERS pre-fund 2% $2M $3M $3M
Retiree Medical pre-fund 2% $2M $3M $3M
Road Improvements-Deferred
Maintenance 3% $2M $4M $4M
Parks -Deferred Maintenance 2% $3M $3M $3M
City Services and Program Increase 3% $3M $4M $4M
Annual Budget Increase $12M $17M $17M
City Council’s Fiscal Sustainability
Funding Policy
8 General Fund FY 2022/23 Revenues
9 (in thousands)
2021/2022
(amended)
2022/2023
(proposed)
2023/2027
(projected)
Property Tax 28,114 31,090 32,800
Sales Tax 54,222 69,680 73,512
Sales Tax Measure V 14,000 14,770 15,582
Other Taxes 2,720 2,870 2,956
Other Revenues 18,782 19,578 19,283
Total Revenues $ 117,838 $ 137,988 $ 144,133
General Fund FY 2022/23 Expenditures
10 (in thousands)
2021/2022
(amended)
2022/2023
(proposed)
2023/2024
(projected)
Personnel 48,043 53,986 54,780
Non Personnel 37,533 43,007 43,698
Net Transfers In/Out 32,263 40,995 45,655
Total Expenditures 117,839 137,988 144,133
Surplus/(Deficit) (0) (0) (0)
FY 2022/23
Proposed
Annual
Operating and
Capital Budget
Personnel
11 FY 2022/23 Proposed Annual Operating
and Capital Budget Personnel
12 Department Full-time
Employees
City Manager's Office 2
Development Services 3
Human Resources 1
Innovation & Technology 1
Mobility & Housing 2
Operations & Utilities 6
Parks & Recreation 3
Police 7
Total 25
Measure V Funds Committed for
FY 2021/22 and FY2022/23
13 Measure V Funds Committed for FY
2021/22 and FY2022/23
• On February 22, 2022, the City Council held a
wor
kshop to review the Measure V priorities and
project timelines of the amenities based on
available funding.
• The Parks Maintenance Division has a need of
pro
ject support to address the increased volume
of work.
• Parks Planning Coordinator, funding for this position will c
ome from Measure V’s allocation for staffing
14 Measure V Funds Committed for FY
2021/22 and FY2022/23
• Multi-Generational Recreational Center: allocate $40
millio
n ($31 million from Measure V and $9 million
other sources) to the Multi-Generational Recreation
Center project and proceed with one phase only of
construction, which includes expansion of debt
financing of the $31 million.
• Aquatics Center: commit Measure V reserves to the
Aqu
atic Center’s $55 million (City)budget and avoid
phasing of the project.
15 Measure V Funds Committed for FY
2021/22 and FY2022/23
• Ritter Family Ball Park: commit $3 million in
Measur
e V funds to begin the feasibility and design
study of Ritter Family Ball Park
• Nature Park: commit $1 million in Measure V funds
for
the design of phase 1 of the Nature Park
16 Other Action Items
17 Committed Fund Balances (GASB 54)
for Fiscal Year Ending June 30, 2022
• In preparation for closing fiscal year ending June 30, 2022, staf
f reviews estimated fund balances and
designates funds that have been committed for use
in future periods.
• General Fund $736,937
• Other Governmental $1,450,867
18 Annual Adjustment to Appropriations
Limit (Gann Limit)
• Article XIIIB of the California Constitution, informally known as the
Gann Appropriations Limit, limits the
total amount of appropriations in any fiscal year
derived from the “proceeds of taxes.”
• The calculated appropriation limit for FY 2022/23 is $85.5 million. Based on the budget adopted on June 24, 2022,
$83
million is subject to the limit, and the City is $2.5
million under the limit.
19 BUDGET WORKSHOP
Recommended
Council Action
20 21
Recommended Council Action
• Resolution Adoption of the FY 2022-23
Annual
Operating and Capital Budget
for July 1, 2022, through June 30, 2023
• A super majority vote is required for
budget approval
• Resolution Adoption of the Fiscal
Sustainability Funding Policy
beginning FY 2021/22
• Resolution Adoption Measure V Funds
committed for FY 2021/22 and
FY2022/23
22 Recommended Council Action
• Resolution Adoption of the Committed
fund bal
ances (GASB 54) Fiscal Year
ending June 30,2022
• Resolution Adoption of the Annual
Adjustment to Appropriations Limit
(Gann Limit)
Q&A
23 APPROVED AS TO FORM AND LEGALITY
________________________

CITY ATT
ORNEY’S OFFICE

TRACY CITY C
OUNCIL

RESOLUTI
ON NO. _______________
ADOPTING THE CITY OF TRACY FISCAL YEAR (FY) 2022/23 ANNUAL OPERATING AND CAPITAL BUDGET AND AUTHORIZE THE BUDGET OFFICER TO AMEND THE CITY’S POSITION CONTROL ROSTER FOR FY 2022/23
WHEREAS, City of Tracy Municipal Code se ction 2.12.050 requires the City Manager of the City of Tracy to submit a proposed budget to the City Council; and WHEREAS, The City Manager presented a proposed budget for fiscal year 2022/23 to the City Council on March 22, 2022, during the budget and Capital Improvement Plan Workshop, for all Municipal Funds; and
WHEREAS, On June 24, 2022, the City Manager proposed the adoption of the Financial Plan along with specific adjustments directed by the City Council and listed in the attached Financial
Plan Summaries attached to this Resolution as Attachment A and hereby included herein; and
WHEREAS, The City Council has reviewed the employee positions listed in the budget document and has considered authorizing the City Manager to fill those positions not specifically exempted, provided said positions have sufficient appropriations; and WHEREAS, The City Council has reviewed the level of budgeting control needed by the City Manager to ensure efficiency in managing the operations of the City, including the authorization of budget transfers within a single fund and within given appropriations of said fund; and now, therefore, be it
RESOLVED: That the City Council hereby adopts the Proposed FY 2022/23 City of Tracy Operating and Capital Budget; and be it further
RESOLVED: That the City Council hereby authorizes the Budget Officer to amend the City’s Position Control Roster for Fiscal Year 2022/23. * * * * * * * * * * * * * *
___________________________________________
NANCY D. YOUNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES:

NOES:

ABSENT:

COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:

Resolution 2022-

Page 2 ends

1 ATTACHMENT A
Cit
ywide Operating and Capital Budget
REVENUES (in thousands)
FY 21/22
Amended
FY 22/23
Proposed
FY 23/24
Forecasted
GENERAL FUND $ 117,839 $ 137,988 $ 144,134
DEVELOPMENT SERVICES 17,049 18,160 18,087
GAS TAX 3,167 4,913 5,061

GEN FUND CAPITAL - - -
SPECIAL REVENUE 32,977 8,335 8,585
CAPITAL 35,910 36,541 37,637
DEBT 4,524 6,318 6,453
INTERNAL SERVICES FUND 16,425 20,368 20,923
WATER 23,010 23,868 24,584
WASTEWATER 16,086 17,055 17,551
SOLID WASTE 22,115 26,614 27,412
STORM DRAIN 729 751 774
AIRPORT 954 757 780
TRANSIT 5,611 5,780 5,953
TOTAL REVENUES 296,396 307,448 317,934
EXPENSES (in thousands)
GENERAL FUND $ 86,697 $ 103,665 $ 105,155
DEVELOPMENT SERVICES 14,135 16,927 16,361
GAS TAX 8,379 4,380 1,888
GEN FUND CAPITAL 30,079 44,833 2,891
SPECIAL REVENUE 48,356 13,540 6,083
CAPITAL 35,069 34,103 930
DEBT 4,198 5,783 5,783
INTERNAL SERVICES FUND 19,606 21,350 19,868
WATER 24,719 24,406 25,096
WASTEWATER 60,845 21,155 21,642
SOLID WASTE 26,226 29,914 30,442
STORM DRAIN 736 633 640
AIRPORT 1,318 1,202 1,240
TRANSIT 8,505 7,433 7,160
TOTAL EXPENDITURES 368,868 329,324 245,179
SURPLUS/DEFICIT (72,472) (21,876) 72,755
CAPITAL IMPROVEMENT 162,836 93,034 4,656
NET POSITION CHANGE 90,364 71,158 77,411

APPROVED AS TO FORM AND LEGALITY
________________________

CITY AT
TORNEY’S OFFICE

TRACY CITY

COUNCIL

RESOLUT
ION NO. _______________

ADOPTING A FISCAL SUSTAINABILITY FUNDING POLICY FOR THE CITY OF TRACY AND APPLY SUCH POLICY RETROACTIVELY TO AMENDED FISCAL YEAR 2021-22 ANNUAL BUDGET
WHEREAS, Recently, there has been a reporting change shifting the tax allocation from a statewide allocation through the County sales tax pool from pro -rata al location to a local sales tax allocation based upon the businesses’ point-of-sale or fulfillment of the sale; and WHEREAS, This recent change in tax reporting by a predominant sales tax producer has had
a significant and material impact on the City’s General Fund revenues, nearly doubling the current Sales Tax revenues for the City; and
WHEREAS, In F iscal Year (“ FY”) 2020/21, the General Fund estimated Sales Tax is expected to have an additional $10 million over the estimated budget and in FY 2021/22, the General Fund estimated Sales Tax is expected to be $25 million over the adopted budget; and WHE
REAS, With new ecommerce businesses expected to open in FY 2022/23 within the Cit
y limits, the Sales Tax forecast is expected to grow an additional $12M next year in addition to the econo
my growth of 5% anticipated for the next 2-3 years; and WHEREAS, to fiscally manage the additional revenue, the City Council created an Ad Hoc Committee of the Council to evaluate options fiscal sustai nability funding; and WHEREAS, On December 7, 2021, the City Council’s Ad-Hoc Committee provided an update to the City Council, with recom mendations of proposed fiscal sustainability strategies targeted towards utilization of the increased General Fund revenues; and WHEREAS, On
March 22, 2022, the City Council provided further direction on finalizing these strategies into a proposed policy for Council consideration; and WHEREAS, the proposed policy allocates to budget categories specific percentages of General Fund Revenues, less Measure V Sales Tax and Transfers In and is set forth in more detail
in Attachment A to this Resolution (the “Fisca l Sustainability Funding Policy”); and WHEREAS, as the City has received revenues in excess of the adopted FY 2021-2022 Budget any adopted Fi scal S ustainability Funding Pol icy should apply retroactively to the amended
FY 2021-2022 Annual Budget; and now, therefore, be it
RESOLVED: That the City Council of the City of Tracy hereby adopts the Fiscal Sustainability Funding Policy, more specifically described in Attachment A for all budget years going forward; and be it further
RESOLVED: That the City Council hereby retroactively applies the Fiscal Sustainability Funding Policy to the adopted Budget for Fiscal Year 2021-22; and be it further RESOLVED: That the City Council hereby provides the Finance Director the authority to take all such actions as necessary to implement the purpose of this Resolution. * * * * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCIL M
EMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YO
UNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
Resolution 2022-

Page 2 ends

1 ATTACHMENT A
On-Going R
evenue/(Expenses) Estimated %
of Revenues
Pre-Funding Liabilities:

CalPERS 2%
Retiree Medical 2%
Deferred Maintenance:

Road Improvements 3%
Parks Maintenance 2%
City Services and Program Increase 3%

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CIT

Y COUNCIL
RESOLU
TION NO. _______________

AUTHORIZING THE COMMITMENT OF MEASURE V FUNDS FOR
SPECIFIED PURPOSES, FOR THE AMENDED FY 2021/22 ANNUAL
BUDGET AND THE PROPOSED FY 2022/23 ANNUAL BUDGET
WHEREAS, On February 22, 2022 , the City C ouncil hel d a workshop to review t he Measure V priorities and project timelines of the amenities based on available funding; and WHEREAS, The Parks Maintenance Division has a need of project support to address the increased volume of work; and
WHEREAS, Included in the FY 2022/23 Annual Operating and Capital Budget personnel is the addition of the Parks Planning Coordinator, funding for which position will come from Measure V’s allocation for staffing; and
WHEREAS, Based on the direction received from the City Council at the referenced workshop,
the items shown on Attachment A have been incorporated into the Adopted FY 2021/22 Annual Budget and the Proposed FY 2022/23 Annual Budget; now, therefore, be it RESOLVED: That the City Council of the City of Tracy hereby authorizes the commitment of Measure V Funds for the specific purposes shown on Attachment A, for the Amended FY 2021/22 Annual Budget and
the FY 2022/23 Annual Budget.
* * * * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCIL M
EMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YO
UNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
1 ATTACHMENT A
Project Council Direction Measure V Funds
Multi-Generational
Recreational Center
Allocate $40 million ($31 million from Measure V and
$9 million other sources) to project and proceed with
one phase only of construction, which includes
expansion of debt financing of the $31 million
Aquatics Center Commit Measure V reserves to the $55 million (City)budget and avoid phasing of the project.

Ritter Family Ball Park Commit $3 million to begin the feasibility and design study of Ritter Family Ball Park for FY2022/23
Nature Park
Commit $1 million for the design of phase 1 of the
Nature Park for FY2022/23

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CI

TY COUNCIL
RESOL
UTION NO. _______________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TRACY APPROVING THE COMMITTED FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2022 IN COMPLIANCE WITH STATEMENT 54 OF THE GOVERNMENTAL ACCOUNTING

STANDARDS BOARD
WHEREAS, City of Tracy follows Governmental Accounting Standards Board (GASB) for the basis of
its financial reporting; and
WHEREAS, GASB issued Statement 54: Fund Balance Reporting and Governmental Fund Type Definition and the requirements of this Statement are effective for financial statements for periods beginning after June 15, 2010 (“GASB 54”); and WHEREAS, The objective of GASB 54 is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions; and WHEREAS, The C ity C ouncil has committed r evenues co llected from t he passage o f Measure V; now, therefore, be it
RESOLVED: That the City Council of the City of Tracy hereby approves the list shown on the Attachment A to this Resolution as the Committed Fund Balances for the City’s governmental funds, including the General Fund and Special Revenue funds for June 30, 2022 ; and be it further
RESOLVED: The City Council hereby provides the Finance Director the authority to assign uses to fund balance amounts in compliance with Statement 54 of the Governmental Accounting Standards Board (GASB), as may be necessary
* * * * * * * * * * * *
* *
___________________________________________
NANCY D. YOUNG
Mayor of the City of Tracy, California
ATTEST:

AYES:

NOES:

ABSENT:

COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:

Resolution 2022-

Page 2 ends

1 ATTACHMENT A

DEPARTMENT FUND NAME VENDOR DESCRIPTION BALANCE

GENERAL
FUND
City Attorney's
Office General Fund Meyers Nave Cannabis Related Legal Services 5,563 City Attorney's
Office General Fund Burke, Williams & Sorensen Cannabis Related Legal Services 9,901 City Manager's
Office General Fund Grainger Inc Display case 978
Econ
Development General Fund Tripepi Smith
FY 21-22 Marketing &
Communication Services
(Tourism Grant)
39,306
Econ
Development General Fund American City Business Journals Inc Sacramento Business Journal Advertising 15,000
Finance General Fund NBS Financial Operations Analysis 385 Police General Fund Axon Enterprise (9) BWC & Tasers for new employees 35,526
Police General Fund Axon Enterprise (6) BWC & Tasers for new employees 24,009
Police General Fund Geo-Comm Inc Geo Comm GIS Upgrade 14,276 Police General Fund Stanislaus County sheriff's Dept Police Academy for recruits 24,000 Public Works General Fund Cornerstone Environmental
Contractors Inc
IGF-Hoyt Booster Pump EST
6/22 12,990
Public Works General Fund 72 Hr. LLC Fleet - x2 Patrol Vehicles 40,363 Public Works General Fund Motorola Solutions Inc Fleet - x2 Patrol Vehicles Radio 8,999 Public Works General Fund Tracy Sign Inc Fleet - x2 Patrol Vehicles Dec 762 Public Works General Fund Statewide Traffic Safety and Signs Inc Fleet - Thermo Cart 3rd Qt Ask 87,746
Public Works General Fund 72 Hr. LLC Fleet- Ford Escape Homeless Manager 30,245
Public Works General Fund Derotic LLC Fleet - x2 Patrol Vehicles Pai 26,516 Public Works General Fund Ron Dupratt Ford, Inc Ford F550 Flat bed for Public Works (Street Markings) 88,200
Police Federal Law
Enforce Grant
Public Safety Family Counseling
Group Inc
Critical Incident Stress Mgmt &
Wellness 46,510
Police Federal Law
Enforce Grant Geo-Comm Inc Geo Comm GIS Upgrade 13,558
City Attorney's
Office Central Admin Meyers Nave Legal Services 4,888
City Attorney's
Office Central Admin Colantuono, Highsmith, et al. Special Counsel Legal Services 9,895 City Attorney's
Office Central Admin Daniel P. Doporto Special Counsel Legal Services 5,840 City Attorney's
Office Central Admin Colantuono, Highsmith, et al. Legal Services - Tracy Rural v.

LAFCO 3,534
City Attorney's
Office Central Admin Burke, Williams & Sorensen Special Counsel Legal Services 11,517 City Attorney's
Office Central Admin Renne Public Law Group, LLP Legal Services - Labor & Employment 7,224
Finance Central Admin HdL Companies Business License, Cannabis and Transient Occupancy Tax (TOT) 16,750
Finance Central Admin HdL Companies
Cannabis Management
Program Consulting, Ordinance,
Applications, Etc.
4,200
2 DEPARTMENT FUND NAME VENDOR DESCRIPTION DEPARTMENT
Finance Central Admin Goodwin Consulting Group Inc
Tracy Hills Tax Study and Fire
Revenue Projections New Fire
Stations
40,016
Finance Central Admin MacLeod Watts Inc GASB 75 Actuarial Report FY End 6/30/22 1,950
Finance Central Admin Lew Edwards
Provide Lead Consulting and
Communications Services for
the City
42,000
Finance Central Admin Bartel Associates LLC Actuarial Consulting Services - CalPERS Misc Plan 10,500
Finance Central Admin Bartel Associates LLC Actuarial Consulting Services - CalPERS Safety Plan 20,000
HR Central Admin Legal Assistance Christopher K Boucher 17,398 HR Central Admin Workplace Investigations Van Dermyden Maddux Law Corporation 16,390
Total General Fund 736,937
Public Works Engineering 72 Hr. LLC Fleet- Ford Escape
Development Services 30,245
Public Works Engineering 72 Hr. LLC Fleet- New Ford Rangers x2 for 35,856 Development
Services Planning De Novo Planning Groups Transit Oriented Delvelopment Planning Services 695,265
Development
Services Planning First Carbon Solution Digital Freeway Signs 12,292 Development
Services Planning Placeworks Inc Housing Implemenation Talks 171,068 Utilities Planning CH2M Hill Inc Professional Services for Desalination Project @ WWTP 17,755
Police Asset Forfeiture Geo-Comm Inc Geo Comm GIS Upgrade 25,000 Econ
Development CBDG McHenry House CDBG FY 2019-2020 (Public Facility) 11,870
Econ
Development CBDG Tracy Interfaith Ministries 2020-2021 CDBG Grant Recipient 12,000
Econ
Development CBDG Boys & Girls Club of Tracy 2020-2021 CDBG Grant Recipient 8,000
Econ
Development CBDG Tracy Community Connections
Center Inc.
2020-2021 CDBG Grant
Recipient 7,500
Econ
Development CBDG Boys & Girls Club of Tracy
2020-2021 CDBG Grant
Recipient - Facility
Improvements
354,438
Econ
Development CBDG Boys & Girls Club of Tracy 2021-2022 CDBG Grant Recipient 8,000
Econ
Development CBDG Tracy Interfaith Ministries 2021-2022 CDBG Grant Recipient 12,000
Econ
Development CBDG Coalition of Tracy Citizens to Assist
the Homeless
2021-2022 CDBG Grant
Recipient 6,973
Econ
Development CBDG Women's Center-Youth & Family
Services
2021-2022 CDBG Grant
Recipient 12,000
Econ
Development CBDG Tracy Community Connections
Center Inc.
2021-2022 CDBG Grant
Recipient 8,000
Public Works LMD Central Control Systems LTD LMD-controller replacement 8,412 Public Works LMD Central Control Systems LTD LMD-controller replacement 7,115 Public Works LMD Central Control Systems LTD LMD-controller replacement 6,079 Public Works LMD Central Control Systems LTD LMD-Damage to irrg controller 1,000 Total Other Governmental
Funds 1,450,867

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CIT

Y COUNCIL
RESOLU
TION NO. _______________
ESTABLISHING FISCAL YEAR 2022/23 APPROPRIATIONS LIMIT (GANN) PURSUANT TO

ARTICLE XIIIB OF THE CALIFORNIA STATE CONSTITUTION
WHEREAS, In November 1979, the voters of the State of California approved Proposition 4, which states that beginning July 1, 1980, all state and local government budget appropriations cannot exceed the amount resulting from a formula based upon the 1978- 79 budget, plus adjustments for cost of living and population changes, and specific exceptions (the “ Gann Appropriation Limit Initiative”); and
WHEREAS, Proposition 4 implemented the Gann Appropriation Limit Initiative through the addition of Article XIII B to the California Constitution; and WHEREAS, the State Legislature adopted Government Code Section 7900 to establish the process for calculating the state and local government appropriations limits under Article XIII B of the California Constitution, and Proposition 111, adopted in June 1990, provided new adjustment formulas (as modified, the “Gann Limit”);
WHEREAS, in accordance with these State laws, the City of Tracy has prepared documentation establishing the 2022- 23 appropriation limit, and has made the documentation used in the determination of the Gann Limit available to the public in the proposed 2022-2 3 budget more than fifteen (15) days before this resolution is being considered and adopted; and WHEREAS, The Finance Director of the City of Tracy has determined that the percentage change in per capita income and the city population is the preferred method of calculation in the cost-of-living adjustment; and
WHEREAS, The calculation results in a Gann Limit of $85,804,336; and WHEREAS, Prior to the adoption of this Resolution, the City Council has considered and adopted the
FY 2022/23 budget on June 24, 2022; and now, therefore, be it RESOLVED: That the City Council hereby establishes the Fiscal Year 2022/23 appropriations limit in the amount of $85,804,336 pursuant to Article XIIIB of the California State Constitution; and be it further
RESOLVED: That the City Council hereby finds that the Adopted Budget for Fiscal Year 2022-23 includes $83,297,909 in appropriations that are subject to the limit, and proceeds of taxes of $85,804,336 and be it further
RESOLVED: That the City Council hereby finds that for Fiscal Year 2022 -23, the City of Tracy is currently $2,506,427 below the limits of Article XIII B of the California Constitution. * * * * * *
* * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the City Council on June 24, 2022, by the following vote:

AYES: COUNCIL M
EMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YO
UNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
Resolution 2022-

Page 2 ends

1 Attachment:

CITY OF TRACY
2022/23 Appropriations Limit Calculation
Description Amount
2020-21 Appropriations Limit $ 79,006,614
2022-23 City population 1.0098
2022-23 Per capita income 1.0755
2022-23 Appropriations Limit $ 85,804,336
2022/23 Projected Tax Revenues
Description Amount
Property Taxes $ 31,090,487
Sales & Use Tax 69,680,000
Sales & Use Tax 14,770,000
Transient Occupancy Tax 1,793,500
Franchise Fees 4,170,506
Business License Tax 1,076,197
Real Property Transfer Tax 1,389,361
Interest Earnings 0
2022-23 Projected Qualifying Expenses
Exemptions
Debt Service (2,672,142)
Qualified Capital Outlays (38,000,000)
Appropriations Subject to Limitation $ 83,297,909 Margin $ 2,506,427
June 24, 2022
AGENDA ITEM 3.B

REQUEST

ADOPT A RESOLUTION APPROVING THE DISPLAY OF THE LESBIAN, GAY,

BISEXUAL, TRANSGENDER, AND QUEER (LGBTQ) PRIDE FLAG ON THE FLAGPOLE OUTSIDE OF THE TRACY CITY HALL OCTOBER 6th THROUGH OCTOBER 9th, 2022, TO COMMEMORATE LGBTQ HISTORY MONTH AND OCTOBER 11, 2022, TO COMMEMORATE NATIONAL COMING OUT DAY

EXECUTIVE

SUMMARY
Per Sect
ion 2 of the City of Tracy’s “Policy for the Display of Flags at City Facilities”, ceremonial flag requests must be made annually by May 1st . During the City Council meeting held on May 17, 2022, Council Member Arriola, seconded by Mayor Pro Tem Vargas requested that an item be agendized regarding the display of the LGBTQ Pride flag for one weekend in October during LGBTQ History month and coinciding with National Coming Out Day.

DISCUSSI
ON
On June 18,
2019, the City Council adopted a policy, via Resolution No. 2019-138, outlining the City’s processes for displaying flags at City facilities, including ceremonial or commemorative flags (“Flag Policy”). Since its original adoption, the Council has amended the Flag Policy several times: October 15, 2019, via Resolution No. 2019-199, to address implementation issues; July 21, 2020, via Resolution No. 2020-132, to establish a maximum amount of time a flag can be displayed (31 days) and flag ceremonies, and on May 4, 2021, via Resolution 2021-052 to add language to provide protocols to acknowledge the passing of current or former City Council Members.

The Flag Policy (
Attachment A) seeks to balance Council’s desire to express the City’s official sentiments through the display of commemorative or ceremonial flags with the requirements under the First Amendment. To that end, the Flag Policy establishes that the City’s flagpoles are not a public forum and prohibits the display of a “commemorative or ceremonial flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party.” In addition, the Flag Policy requires the City Council approve the display of a commemorative or ceremonial flag via resolution with a four-fifths vote. Said approval would authorize the display of a commemorative or ceremonial flag on the flagpole outside of City Hall.

Council
Member Arriola, with support from Mayor Pro Tem Vargas requested that Council discuss displaying the LGBTQ Pride flag which is flown annually during the month of June, to also be flown during the weekend prior to National Coming Out Day on October 11th in honor of LGBTQ History Month which is celebrated in October. As stated in Section 2.3.3 of the Flag Policy, if the day of commemoration occurs on a weekend or City holiday, the flag will be posted on the last working day prior to the weekend or holiday and removed on the next normal City work day. Therefore, should Council approve the flag request and due to the City being closed on Friday on October 7, the flag would be raised on Thursday, October 6 and lowered on the morning of Monday, Agenda Item 3.B
June 24, 2022

Page 2 ends

October 10, 2022. Council could also request the flag to remain raised for National Coming Out Day on October 11, 2022.

FISCAL IM
PACT
The City is already in possession of a flag used for LGBTQ Pride month. Approval of this item would result in a small cost of staff time to raise and lower the flags. This personnel
expense can be absorbed in the existing Public Works Department’s operating
budget.

STRATEGIC
PLAN
This agenda item
is a routine operational item that does not relate to the Council’s Strategic Plans.

RECOMMENDA
TION
That City Council c
onsider authorizing, via resolution, the display of the LGBTQ Pride flag during the weekend of October 6th through 9th to commemorate LGBTQ History Month in October, 2022 and to coincide with National Coming Out Day on October 11, 2022.

Prepared by:

Adrianne Richardson, City Clerk
Reviewed by:

Don Scholl, Public Works Director
Midori Lichtwardt, Assistant City Manager
Approved by:

Michael Rogers, City Manager

ATTACHME
NT:

A- Policy for the Display of Flags at City Facilities, revised 2021 RESOLUTION 2021- 052

AMENDING THE COUNCIL POLICY FOR THE DISPLAY OF FLAGS AT CITY FACILITIES TO

INCLUDE PROTOCOLS FOR THE PASSING OF CURRENT OR FORMER CITY COUNCIL

MEMBERS
WHEREAS, The City of Tracy displays and handles all flags in accordance with Federal and State Law, and
WHEREAS, On June 18, 2019, the City Council adopted a policy via Resolution No. 2019- 138 on the display of flags at City facilities, including ceremonial or commemorative flags Flag Policy), and
WHEREAS, The Flag Policy was amended via Resolution No. 2019- 199 and No. 2020- 132 to address implementation issues, and
WHEREAS, On January 19, 2021, the Council directed staff to amend the Flag Policy to include protocols for the passing of current or former City Council Members, and NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Tracy hereby amends the Flag Policy as follows:

Section 2.2. is hereby replaced in its entirety by the following language:

2. 2 City Manager Authority. The City Manager is authorized to order the City flag be lowered to half- staff as listed below. The flag will be lowered as soon as practicable following notification of death and will remain lowered until interment or up to two weeks, whichever is shortest.

2. 2. 1 A City employee killed in the line of duty.

2. 2. 2 Death of a current or former City Council Member." The foregoing Resolution 2021- 052 was adopted by the Tracy City Council on the 4th day of May, 2021, by the following vote:

AYES: COUNCIL MEMBERS: ARRIOLA, BEDOLLA, DAVIS, VARGAS YOUNG NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
MAYOR

CITY CLERK

ATTACHMENT A
1 POLICY FOR THE DISPLAY OF FLAGS AT CITY FACILTIES
Approved by Reso. No. 2019-199, Amended by Reso. No. 2020-132 and Resolution 2021-052
SECTION 1: PURPOSE
The purpose of this policy is to establish clear guidelines regarding the display of the flags at City facilities.

SECTION 2: POLICY

2.1 Conformance with Federal and State Flag Regulations. Flags shall be displayed in accordance with federal and state regulations, including Title 4, Chapter 1 of the United States Code, and Sections 430 through 439 of the California Government Code.

2.2 City Manager Authority. The City Manager is authorized to order the City flag be lowered to half-staff as listed below. The flag will be lowered as soon as practicable following notification of death and will remain lowered until interment or up to two weeks, whichever is shortest.

2.2.1 A City employee killed in the line of duty.

2.2.2 Death of a current or former City Council Member.

2.3 Ceremonial or Commemorative Flags.

2.3.1 Non-Public Forum. The City’s flagpoles are not intended to be a forum for free expression by the public. Ceremonial or commemorative flags shall be displayed as an expression of the City’s official sentiments. A request to display a commemorative or ceremonial flag must be supported by two Council members in order to be agendized for Council consideration. All requests to display commemorative flags must be listed as a “Regular Item” on a Council agenda. Council must present requests to display a commemorative flag by May 1st of every year. A Council resolution authorizing the display of a commemorative flag must be approved by a supermajority vote (four-fifths) of the City Council.

2.3.2. Commemorative flags shall only be displayed at City Hall and on the flagpole designated to display the City’s flag. Commemorative or ceremonial flags shall be displayed concurrently with the City flag at second position (below the City flag).

2.3.3 Commemorative or ceremonial flags will be displayed for 24 hours if displayed during the normal City workweek. If the day of commemoration occurs on a weekend or City holiday, the flag will be posted on the last working day prior to the weekend or holiday and removed on the next normal City work day. The 24-hour period may also be extended up to month (a maximum of 31 days) if specified in the approving Council resolution. Saturdays, Sundays or City holidays shall not count towards the maximum 31-day display period.

2.3.4 The City will not display a commemorative or ceremonial flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party. 2 2.3.5 If Council Members want to also request a flag ceremony, such request must be made when requesting to display a commemorative flag in accordance with Section 2.3.1. Said flag ceremony shall consist of the following: publicity on the City’s website and social media accounts, press release, and audio/visual support (podium with speaker and microphone, recording, and/or photography.

2.4 Implementation of Policy. The Public Works Director is responsible for ensuring the proper implementation of this Policy. The Public Works Director is further authorized to develop standard operating procedures consistent with this Policy.

APPROVED AS TO FORM AND LEGALITY
________________________
CITY
ATTORNEY’S OFFICE

TRACY CI

TY COUNCIL
RESOL
UTION NO. _______________

APPROVING THE DISPLAY OF THE LESBIAN, GAY, BISEXUAL,

TRANSGENDER,

AND QUEER (LGTBQ) PRIDE FLAG ON THE FLAGPOLE

OUTSIDE
OF THE TRACY CITY HALL: (1) FROM OCTOBER 6th THROUGH
OCTOBER 9th, 2022, CONSISTENT WITH THE CITY’S FLAG POLICY, TO

COMMEMORATE L
GBTQ HISTORY MONTH; AND (2) ON OCTOBER 11,
2022, TO COMMEMORATE NATIONAL COMING OUT DAY
WHEREAS, On June 18, 2019, the City Council adopted a policy, via Resolution No. 2019-138, outlining the City’s processes for displaying flags at City facilities, including ceremonial or commemorative flags (the “Flag Policy”); and WHEREAS, Since its original adoption, the Council has amended the Flag Policy several times: October 15, 2019, via Resolution No. 2019-199, to address implementation issues; July 21, 2020, via Resolution No. 2020-132, to establish a maximum amount of time a flag can be displayed (31 days) and flag ceremonies; and May 4, 2021, via Resolution 2021-052, to augment the City Manager’s authority for lowering flags to include the passing of current or former City Council Members; and
WHEREAS, For a commemorative or ceremonial flag to be displayed on City facilities, the Flag Policy requires any request to be supported by two Council Members in order for such request to be agendized for consideration at a future Council meeting; and WHEREAS, Any such request must be made by May 1st of every calendar year and be approved by the City Council at a subsequent meeting, via resolution, with a four-fifths vote; and
WHEREAS, At the May 17, 2022 Council meeting, Council Member Arriola, with support from Mayor Pro Tem Vargas, requested that the Council discuss the display of the LGBTQ
Pride flag at City Hall during the weekend prior to National Coming Out Day on October 11th in honor of LGBTQ History Month, which is celebrated in October, as well as on October 11th itself; and
WHEREAS, The City Council of the City of Tracy wishes to recognize LGBTQ History month as it acknowledges the history of the diverse LGBTQ community and the importance of civil rights movements in progressing gay rights; and WHE
REAS, The display of the LGBTQ Pride Flag is also known as the rainbow flag because of its diverse color ed stripes (the “Pride Flag”) and serves to express the City’s official commitment to celebrating diversity; and
Resolution 2022-

Page 2 ends

WHEREAS, T
he proposed request is consistent with the City’s approved Flag Policy that governs the display of flags at City facilities; and now, therefore, be it RESOLVED: That the City Council hereby authorizes the display of the Pride Flag on the City flagpole located in
front of City Hall on the weekend of October 7th through 9th, 2022 to commemorate LGBTQ History Month; and be it further
RESOLVED: Consistent with the Flag Policy, the Pride Flag shall remain displayed on the City flagpole located in front of City Hall on October 6th and 9th, 2022, due to City Hall closures on such dates; and be it further
RESOLVED: That the City Council hereby further authorizes the display of the Pride Flag on the City flagpole located in f ront of City Hall on October 11, 2022, to commemorate National Coming Out Day.
* * * * * * * *
* * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 24, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NO
ES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NANCY D. YOUNG
Mayor of the City of Tracy, California
ATTEST:

ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California

Tracy City CouncilJune 24, 2022

Tracy City Council
June 24, 2022