MODESTO CITY COUNCIL RESOLUTION NO

Transcription

1 MODESTO CITY COUNCIL RESOLUTION NO RESOLUTION CONFIRMING THE DIAGRAM AND ASSESSMENTS, AND ORDERING THE LEVY AND COLLECTION OF CHARGES WITHIN LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO.1 FOR DRY CREEK MEADOWS SUBDIVISIONS NOS. 1-6 WHEREAS, the City of Modesto has by Resolution No adopted on May 22, 2007, declared its intent to levy charges or assessments for the purpose of administering the maintenance oflandscaping in the public right-of-way within the street medians and adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 1-6 under the provisions of the "Landscaping and Lighting Act of 1972", and WHEREAS, the cost for Fiscal Year is $26.00 annual assessment per lot, and WHEREAS, the charges against the real property are not levied with regard to property values but rather by allocated cost reports prepared by City Engineering, and WHEREAS, the City of Modesto has detennined and certifies that the charges are either exempt from or in compliance with all the provisions of Proposition 218, which was passed by the voters in November 1996, and WHEREAS, the City of Modesto has further detennined the charges are in compliance with all laws pertaining to the levy of such charges, NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Modesto hereby orders the levy and collection of $26.00 annual assessment per lot within Landscape Maintenance Assessment District No.1 for Dry Creek Meadows Subdivisions Nos. 1-6 for the Fiscal Year, and that a certified copy of this resolution shall be

2 delivered to the Auditor-Controller of the County of Stanislaus for placement of such charges on the County Tax Roll. BE IT FURTHER RESOLVED that the diagram of said assessment district and amount of levy thereon is hereby confirmed. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 10 th day ofjune, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Keating, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Keating, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Marsh, O'Bryant (SEAL) APPROVED AS TO FORM: By: ~ SUSANA LCALA WOOD, City Attorney ATTEST:~M~ IE N MORRIS, City Clerk

3 MODESTO CITY COUNCIL RESOLUTION NO RESOLUTION CONFIRMING THE DIAGRAM AND ASSESSMENTS, AND ORDERING THE LEVY AND COLLECTION OF CHARGES WITHIN LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO.2 FOR DRY CREEK MEADOWS SUBDIVISIONS NOS. 7-10, CREEKWOOD MEADOWS SUBDIVISION, AND YOSEMITE MEADOWS SUBDIVISION UNITS 1 & 2 WHEREAS, the City of Modesto has by Resolution No , adopted on May 22,2007, declared its intent to levy charges or assessments for the purpose of administering the maintenance oflandscaping in the public right-of-way within the street medians and adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivision Units No.1 & 2, under the provisions of the "Landscaping and Lighting Act of 1972", and WHEREAS, the cost for Fiscal Year is $ per acre for commercial property and $23.68 for each residential property, and WHEREAS, the charges against the real property are not levied with regard to property values but rather by allocated cost reports prepared by City Engineering, and WHEREAS, the City of Modesto has determined and certifies that the charges are either exempt from or in compliance with all the provisions of Proposition 218, which was passed by the voters in November 1996, and WHEREAS the City of Modesto has further determined that the charges are in compliance with all laws pertaining to the levy of such charges. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Modesto hereby orders the levy and collection of $ per acre for commercial property and $23.68 for each residential property within Landscape Maintenance IPWIB Sandhulltem

4 Assessment District No.2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivision Units 1& 2 for the fiscal year, and that a certified copy of this resolution shall be delivered to the Auditor- Controller of the County of Stanislaus for placement of such charges on the County Tax Roll. BE IT FURTHER RESOLVED that the diagram of said assessment district and amount of levy thereon is hereby confirmed. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 10 th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Keating, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Keating, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Marsh,O'Bryant (SEAL) APPROVED AS TO FORM: ATTEST: ~LLvI MO\~ JE MORRIS, CIty Clerk By: ~ SUSAN ALCALA WOOD, CIty Attorney 07/10107/PW/B Sandhulltem

5 MODESTO CITY COUNCIL RESOLUTION NO RESOLUTION ACCEPTING THE 2007 REPORT FOR WATER QUALITY RELATIVE TO PUBLIC HEALTH GOALS (public HEALTH GOALS REPORT) AS REQUIRED BY TITLE 22 OF THE CALIFORNIA HEALTH AND SAFETY CODE WHEREAS, Title 22 of the California Health and Safety Code requires that all large water system providers issue a Confidence Report on water quality standards in their service area, and WHEREAS, said Consumer Confidence Report is required to be delivered to customers by July 1, 2007, and WHEREAS, in addition to the above requirement, any water system with more than 10,000 service connections is mandated to issue a report every three (3) years documenting any violations of a Public Health Goal for potable water, and WHEREAS, the water provider is required to hold a public hearing on the Public Health Goals Report and accept public comments at that time, and WHEREAS, said Public Health Goals Report has been prepared and the matter set for a public hearing to be held on July 10,2007, at 5:30 p.m., in the Tenth Street Place Chambers, located at th Street, Modesto, California, at which date and time said duly noticed public hearing of the Council was held for the purpose of receiving public comments. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that following the receipt of public comment, and the 2007 Public Health Goals Report having been duly considered, said report is hereby accepted. 071] O/07IPW I A Lagarbo/ltem ]

6 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 10 th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Keating, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Keating, Olsen, Mayor Ridenour None Marsh,O'Bryant ATTEST:_-:()".:i1'":":U~AJ0~::-:N:c:::':"~~~~_ Jt'AN MORRIS, City Clerk APPROVED AS TO FORM: By: ~ SUS ~ WOOD, City Attorney 07/10/07IPW I A Lag",bo/Item

7 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING A CFF RIGHT OF WAY REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF MODESTO AND MARY KRUSE TRUST, ARG INVESTMENTS, LLC, A LIMITED LIABILITY COMPANY, AND HILLSBOROUGH COMMERCIAL LP, A LIMITED PARTNERSHIP, WITH WITH A MAXIMUM REIMBURSEMENT AMOUNT OF $147,002 FOR RIGHT OF WAY FOR THE FUTURE PELANDALE/CLARATINA EXPRESSWAY AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WHEREAS, the City of Modesto's General Plan calls for Pelandale Avenue/Claratina Road to be constructed as a Class A expressway, and WHEREAS, the future Claratina Road will be developed as an expressway and additional right of way is necessary for the future realignment of Claratina Road, and WHEREAS, Mary Kruse Trust, ARG Ivestments, LLC, a Limited Liability Company, and Hillsborough Commercial, LP, a Limited Partnership, (Collectively the "Developer") has a legal interest in a certain tract ofland located west of McHenry Avenue and north of Clara tina Avenue in the Hetch Hetchy Specific Plan area of the City of Modesto, commonly known as the CARMAX ("Project"), and WHEREAS, as a condition of approval of the Project, the Developer is required to dedicate 26,527 square feet of right of way for the future Pelandale/Claratina Expressway (the "Dedication"), and WHEREAS, the Dedication will be made through the recordation of the Parcel Map for the Project ("Parcel Map") and the Dedication will be effective upon recordation of said Parcel Map, and /CEDI AGedney/item

8 WHEREAS, a portion of the Dedication is reimbursable through the City's Capital Facilities Fees ("CFF") program, and WHEREAS, the City and the Developer are proposing to enter into a CFF Right of Way Reimbursement Agreement ("Agreement") between the City of Modesto and Developer to provide for reimbursement for (a portion of) the right of way to be dedicated, and WHEREAS, said Agreement shall have a maximum reimbursement amount of$147,002, which will be allocated from the Streets CFF fund not later than fifteen (15) days after recordation of the Parcel Map for the Project or December I, 2007, whichever occurs later. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby finds and determines that: 1. The proposed CFF Right of Way Reimbursement Agreement between the City of Modesto and Mary Kruse Trust, ARG Investments, LLC, and Hillsborough Commercial, LP, ("Project") is consistent with the Modesto Urban Area General Plan. 2. The reimbursement for the proposed right of way is included in the 2003 CFF program. 3. As per Sections 15168( c) and of the California Environmental Quality Act ("CEQA") Guidelines, this Project is within the scope of the projects covered by the General Plan Master EIR ("Program BIR") and no new environmental document or findings are required by CEQA /CED/AGedneylitem

9 4. There are no substantial changes proposed in the Project which result in new significant environmental effects or a substantial increase in the severity of previously identified significant effects and, therefore, no major revisions to the Program ErR, are required. 5. No substantial changes have occurred with respect to the circumstances under which the Project is undertaken which will result in new significant environmental effects or a substantial increase in the severity of previously identified significant effects and, therefore, no major revisions to the Program ErR, are required. 6. There is no new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence when the Program ErR, was adopted which shows any of the following: a. one or more significant effects which is not discussed in the Program ErR; or, b. significant effects which were previously examined will be substantially more severe than previously shown; or, c. previously infeasible mitigation measures or alternatives are now feasible and would substantially reduce one or more significant effects of the project, but the Project proponents decline to adopt the mitigation measure or alternative; or, d. mitigation measures or alternatives which are considerably different from those analyzed in the Program ErR would /CED/AGedneylitem

10 substantially reduce one or more significant effects on the environment, but the Project proponents decline to adopt the mitigation measure or alternative. BE IT FURTHER RESOLVED that the CFF Right of Way Reimbursement Agreement between the City of Modesto and Mary Kruse Trust, ARG Investments, LLC, and Hillsborough Commercial, LP is hereby approved. BE IT FURTHER RESOLVED that the City Manager, or designee, is authorized to execute the Agreement /CED/AGedneylitem

11 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24 day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating firlh ATTEST: N~ JE MORRIS, City Clerk (SEAL) APPROVED AS TO FORM: By: /CED/AGedneylitem

12 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING TASK ORDER NO.1 TO THE MASTER PROFESSIONAL SERVICES AGREEMENT FOR CONSULTANT SERVICES WITH GOODWIN CONSULTING GROUP FOR THE ADMINISTRATION OF EXISTING COMMUNITY FACILITIES DISTRICTS WHEREAS, the City Council is desirous of administering and maintaining its existing Community Facilities Districts ("CFDs"), and WHEREAS, on December 12, 2006, the Council of the City of Modesto approved a Master Professional Services Agreement for Consultant Services with Goodwin Consulting Group for the administration of CFDs, and WHEREAS, Goodwin Consulting Group ("Consultant") has prepared Task Order No. I ("Task Order") for the administration of the City'S existing CFDs, attached as Exhibit "A", and WHEREAS, administration of existing CFDs is funded through an annual maintenance tax as described in the Rate and Method of Apportionment of each CFD, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that Task Order No.1, attached as Exhibit "A", hereto is hereby approved /CED/AGedney/item

13 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, Councilmember Dunbar, who moved its adoption, which motion being duly seconded by Councilmember Hawn, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None ABSENT: Councilmembers: Keating APPROVED AS TO FORM: Il { /I BY~~~~~~~;'df!~!!aA.~~_ SUSANA AL ALA W OD, City Attorney ATTEST:~M~ JE MORRIS, CIty Clerk /CEDI AGedney litemos

14 Exhibit "A" City of Modesto TASK ORDER NO. 1 for Goodwin Consulting Group's Master Professioual Services Agreement for Consultaut Services Annual Administration Carver Bangs CFD No Coffee-Claratina CFD No Fairview Village CFD No North Beyer Park CFD No North Beyer #2 CFD No North Pointe CFD No Village One CFD No Village One CFD No Enterprise Business Park CFD No This Task Order No. 1 is made and entered into by and between the City of Modesto, a municipal corporation (hereinafter "CITY"), and Goodwin Consulting Group., a California Corporation (hereinafter "CONSULTANT") and is effective as of RECITALS A. CONSULTANT has entered into a Master Professional Services Agreement for Consultant Services, (hereinafter "Agreement"), dated February 13, 2007 ("AGREEMENT") with the CITY, by which the CONSULTANT has agreed to provide professional administration and financial services for the annual administration of eight existing Community Facilities Districts, which is incorporated herein by reference. B. At the request of CITY and in compliance with the terms of the AGREEMENT, CONSULTANT has prepared the Task Order No.1, a copy of which is attached hereto as Exhibit A. C. CITY and CONSULTANT desire that CONSULTANT perform the services as identified in the attached Task Order. NOW THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. INCORPORATION OF MASTER PROFESSIONAL SERVICES AGREEMENT FOR CONSULTANT SERVICES. This Task Order hereby incorporates by reference all terms and conditions set forth in the Master Professional Services Agreement, unless expressly modified by this Task Order. The AGREEMENT and this Task Order shall, to the fullest extent possible, be read and considered as fully integrated documents and shall be interpreted so as to avoid inconsistencies, comply with all applicable laws and ensure that the objectives of the parties will be fully realized. Nothing in this Task Order is intended to supersede, terminate, modif'y or otherwise affect any provision of the AGREEMENT, except to the extent that a provision of this AGREEMENT is in direct and irreconcilable conflict with a provision of the AGREEMENT. Then, and only in that

15 event, the provisions of the AGREEMENT shall prevail over the contradictory provision of the Task Order. 2. SCOPE OF SERVICES. CONSULTANT shall perform the services described in Exhibit "A" attached hereto and incorporated herein by reference. CONSULT ANT shall not replace its Authorized Representative, nor shall CONSULTANT use any subcontractors or subconsultants not listed in this Task Order, without the prior written consent of CITY. 3. TIME OF PERFORMANCE. CONSULTANT shall commence performance within five (5) working days after receipt of a Notice to Proceed from City, and shall complete all required services no later than the dates set forth in Exhibit "A". 4. COMPENSATION. For services performed by CONSULTANT in accordance with this Task Order, CONSULTANT agrees to accept a sum not to exceed $77,500 annually. CONSULTANT shall be paid at the times and in the manner set forth in Paragraph 3 of the Master Professional Services Agreement, unless expressly provided otherwise in the attached Task Order.. 5. SIGNATURES. The individuals executing this Task Order represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Task Order on behalf of the respective legal entities of the CONSULTANT and CITY. This Task Order shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

16 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN MINER JOAQUIN BUILDING CORPORATION AND THE CITY OF MODESTO TO DEFER FORMATION OF THE COMMUNITY FACILITIES DISTRICT TO FINAL OCCUPANCY FOR THE MODESTO COMMERCE BANK LOCATED AT THE NORTHEAST CORNER OF DALE ROAD AND PELANDALE A VENUE AND AUTHORZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE MEMORANDUM OF UNDERSTANDING WHEREAS, Miner Joaquin Building Corporation is desirous of constructing a Modesto Commerce Bank branch on a three acre parcel located at the northeast comer of Dale Road and Pelandale Avenue which is located in the Kiernan Business Park South, KBPS area; and WHEREAS, the following condition was placed on the parcel map for Miner Joaquin Building Corporation, "Prior to pulling a building permit, developer shall take all actions reasonably necessary to secure and establish a City Mello-Roos Community Facilities District ("CFD") for the area bounded by Dale Road, Pelandale A venue, Bangs Road and American Avenue for the capital improvements and ongoing maintenance of a regional storm drain basin, right-of-way dedication and improvements for a third lane on Dale Road and the landscaping in the public right-of-way adjacent to the project site to be financed by said CFD or, if said CFD has been established for the area bounded by Dale Road, Pelandale A venue, Bangs Road and American A venue, developer shall take all actions reasonably /CEDI AGedney/item

17 necessary to annex its development to said CFD, which shall actually result in annexation of its development to said CFD at the tax rate for the zone of said CFD to which the development is ultimately annexed; or alternatively, in the event complete annexation does not occur for any reason, developer may provide a fund-in mechanism for said capital improvements and ongoing maintenance to the same general standard as other similar capital improvements and ongoing maintenance financed by said CFD, subject to approval of the fimding mechanism by the City, such approval not to be unreasonably withbeld. "; and WHEREAS, on or about October 6, 2006, Miner Joaquin Building Corporation placed a deposit in the amount of $64,500 with the City to form a CFD; and WHEREAS, said CFD is not ready to be formed until an Infrastructure Finance Plan is developed, and WHEREAS, the City is diligently working to develop the list of facilities and the financing plan for Kiernan Business Park South, and WHEREAS, among the goals of the City is to encourage economic development and provide for the timely installation and maintenance of public facilities in the interest of the public health, safety, and welfare, and WHEREAS, this situation is distinctive in that the Infrastructure Finance Plan was not complete prior to forming the CFD, and /CEDI AGedneylitem

18 WHEREAS, staff recommends the City Council approve a Memorandum of Understanding between Miner Joaquin Building Corporation and the City of Modesto that outlines the above recitals and conditions outlining this circumstances of this project, NOW, THEREFORE, BE IT RESOLVED, by the Council ofthe City of Modesto, that it hereby makes the following findings: SECTION 1. The above recitals are true and correct. SECTION 2. There are valid circumstances that have delayed the formation of a CFD for the Kiernan Business Park South area, of which have been outside the control of Miner Joaquin Building Corporation. SECTION 3. Miner Joaquin Building Corporation has worked with the City to form said CFD and a building permit may be issued with the intent that said CFD will be formed prior to final occupancy. SECTION 4. The City Manager, or his designee, is hereby authorized to execute the Memorandum of Understanding between the City of Modesto and Miner Joaquin Building Corporation /CED/AGedneylitem

19 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Dunbar, who moved its adoption, which motion being duly seconded by Councilmember Hawn, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating Attest: ~V\ {'vi bla.a.14 JE MORRIS, CIty Clerk APPROVED AS TO FORM: ~\ e r f"jfr-~ fu a D, dity Attorney By:, i \F--t~- ~ ~c;v SUSANA ALCALA /CED/AGedney/item

20 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING AN INTERAGENCY AGREEMENT WITH THE COUNTY OF STANISLAUS TO PROVIDE SANITARY SEWER SERVICE IN THE ROBERTSON ROAD NEIGHBORHOOD, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WHEREAS, the City of Modesto owns, operates and maintains Modesto Sanitary Sewer District No.1 ("Sewer District"), which is designed and intended to serve residents and business located within the City of Modesto ("Sewer District"), and WHEREAS, there exists a substantial unincorporated County island within the CITY's limits which is commonly known as the Robertson Road Neighborhood, generally located south of Robertson road, east of Carpenter Road, west of Hays Street, and north of John Street containing 334 parcels on 96.8 acres and shown on Exhibit A hereto and incorporated herein by reference ("Infill Area"), and WHEREAS, the County of Stanislaus ("COUNTY") has requested that CITY'S Sewer District provide sewer service to the Infill Area, and WHEREAS, COUNTY has constructed sanitary sewer lines within the Infill Area and CITY has accepted said sanitary sewer lines on behalf of the public for public use, and WHEREAS, CITY is prepared to provide sewer services to the property owners within the Infill Area. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the interagency agreement between the City of Modesto and the County of Stanislaus to provide sanitary sewer service in the Robertson Road Neighborhood lCEDiBSandhuJitem

21 BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the agreement. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: ~N~ JE11ORRIS, City Clerk APPROVED AS TO FORM: (~ BY ~~~ ~ -L~~~~'~~~ \ (lr";}«'~~~~ SUS A ALCALA WOOD, 9ity Attorne /CEDIBSandhu/item

22 o 0::: ROBERTSON RD I 0::: L ~-~-----,,----."""--"""-----!IL11IJI tihil±lti~j Hl~J~il1 ~HflTIIHJ t~tlllrhi l~ltijil~i ~ [[ElL [~JI111 ttr{a~:ti~ ~mhffi ~Etr!Jfl fl~l)-fr.~ -" -"'''-.. '''','~,-.. J""---"-.. "---",,-,,--'" "",,-, --" ROBERTSON NEIGHBORHOOD CONSTRUCTION ( SANITARY SEWER IMPROVEMENTS) PROJECT

23 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AUTHORIZING THE AWARD OF BID AND CONTRACT FOR THE PURCHASE OF VARIABLE FREQUENCY DRIVE UNITS FOR THE PUBLIC WORKS DEPARTMENT, WATER DIVISION, TO WILLE ELECTRIC SUPPLY, CO., INC., MODESTO, CA FOR A TWO (2) YEAR AGREEMENT WITH THREE (3) ONE-YEAR EXTENSION OPTIONS AT THE SOLE DISCRETION OF THE CITY, FOR A TOTAL ESTIMATED ANNUAL COST OF $43,209 WHEREAS, variable frequency drive (VFD) units are used to stabilize water pressure in the City's water system, and WHEREAS, a VFD unit controls the motor speed of the well pump, which allows a variance in water flow from the controlled station, and WHEREAS, this controlled water flow allows the system to maintain a more level water pressure without large fluctuations, and WHEREAS, VFD units also start the pump at a softer rotation (ramp speed), which helps prevent water hammer surging, thus reducing electrical costs, and WHEREAS, historically, approximately twenty percent (20%) of the VFD units in use need to be replaced on an annual basis, due to wear, and WHEREAS, on February 7, 2006, Council approved Resolution No authorizing the Purchasing Manager to issue formal Request for Bids (RFB) for the purchase of VFD drive units for the Public Works Department, Water Division, and WHEREAS, on July 11, 2006, the Purchasing Division issued Request for Bid No for the purchase ofvfd units to twenty-five (25) prospective bidders, eight (8) of which were local companies, posted the bid on the City's web site, and formally advertised as required by law, and /F manceikmasasso/item

24 WHEREAS, on August 15,2006, RFB's were formally opened in the City Clerk's office. Of the twenty-five (25) prospective bidders, two (2) companies chose to respond, and WHEREAS, Based on being deemed the lowest responsive and responsible bidder, City staff recommends the award of bid and contract for the purchase of Variable Frequency Drive Units for the Public Works Department, Water Division, to Wille Electric Supply Co., Inc., Modesto, CA, for a two (2) year agreement with three (3) oneyear extension options at the sole discretion of the City, for a total estimated annual cost of$43,209, and WHEREAS, Modesto Municipal Code Section generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to be formally bid. The award of bid and contracts for the purchase of VFD units for the Public Works Department, Water Division, conforms to the Modesto Municipal Code, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby authorizes the award of bid and contract for the purchase of Variable Frequency Drive Units for the Public Works Department, Water Division, to Wille Electric Supply Co., Inc., Modesto, CA, for a two (2) year agreement, with three (3) oneyear extension options at the sole discretion of the City, for a total estimated annual cost of $43,209. BE IT FURTHER RESOLVED that the Purchasing Manager is hereby authorized to issue a purchase agreement for the purchase of VFD units for the Public Works Department, Water Division, to Wille Electric Supply Co., Inc., for a two (2) year IF inancelk.m.asasso/item

25 agreement, with three (3) one-year extension options at the sole discretion of the City, for a total estimated annual cost of $43,209. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None ABSENT: Councilmembers: Keating ATTEST: ~N~ J 1101Tis: City CIefk APPROVED AS TO FORM: ~,t~, t~~ By: Susan cala Wood, City,Attorney F inancelkmasassolitem

26 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AUTHORIZING THE AWARD OF PROPOSAL AND CONTRACT FOR THE FURNISHING OF TICKET PRINTING SERVICES FOR THE PUBLIC WORKS DEPARTMENT, TRANSIT DIVISION, TO DILLINGHAM TICKET COMPANY, LOS ANGELES, CA, FOR A TWO (2) YEAR AGREEMENT, WITH THREE (3) ONE-YEAR EXTENSION OPTIONS AT THE SOLE DISCRETION OF THE CITY, FOR A TOTAL ESTIMATED ANNUAL COST OF $16,876. WHEREAS, seven (7) different types of tickets are being printed for the Modesto Area Express (MAX) program, and WHEREAS, the transit tickets were last bid in 2004 for a three-year contract, and WHEREAS, the City provides specifications and artwork for each type of ticket and requires deliveries to be made to specific locations at specified times according to the needs of the Transit Division, and WHEREAS, on February 27, 2007, Council approved Resolution No authorizing the Purchasing Manager to issue formal Request for Proposal (RFP) for the purchase of ticket printing services for the Transit Division, for a two (2) year agreement, with three (3) one-year extension options at the sole discretion of the City, and WHEREAS, on March 30, 2007, the Purchasing Division issued Request for Proposal No for the purchase of Ticket Printing Services to twenty-seven (27) prospective proposers, of which sixteen (16) were local companies, posted the proposal on the City's web site, and formally advertised as required by law, and WHEREAS, on May 1, 2007, RFP's were formally opened in the City Clerk's office. Of the twenty-seven (27) prospective proposers, two companies chose to respond, and IF inancelmt orres/item

27 WHEREAS, in May 2007, an evaluation committee composed of staff from the Transit Division assessed the responses. The Purchasing Division facilitated the evaluation process, and WHEREAS, proposal evaluation packets were given to each committee member to individually review and score, and WHEREAS, based on being ranked the highest in total evaluation criteria, the evaluation committee recommended award of proposal and contract for the furnishing of Ticket Printing Services to Dillingham Ticket Company, Los Angeles, CA, for a two (2) year agreement, with three (3) one-year extension options at the sole discretion of the City, for a total estimated annual cost of$16,876, and WHEREAS, Modesto Municipal Code Section generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to be formally bid. The award of proposal and contract for the furnishing of ticket printing services for the Public Works Department, Transit Division, conforms to the Modesto Municipal Code, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby authorizes the award of proposal and contract for the furnishing of Ticket Printing Services for the Public Works Department, Transit Division, to Dillingham Ticket Company, Los Angeles, CA, for a two (2) year agreement, with three (3) one-year extension options at the sole discretion of the City, for a total estimated annual cost of $16, F inancelmt orresiitem

28 BE IT FURTHER RESOLVED that the Purchasing Manager is hereby authorized to issue a purchase agreement for the furnishing of Ticket Printing Services for the Public Works Department, Transit Division, to Dillingham Ticket Company, Los Angeles, CA, for a two (2) year agreement, with three (3) one-year extension options at the sole discretion of the City, for a total estimated annual cost of$16,876. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: APPROVED AS TO FORM: By: ~ Susana Alcala Wood, City Attorney lFinancelMTorreslitem

29 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AUTHORIZING THE AWARD OF BID AND CONTRACTS FOR THE FURNISHING OF LABORATORY ANALYTICAL TESTING SERVICES FOR THE PUBLIC WORKS DEPARTMENT, WATER QUALITY CONTROL DIVISION, TO ALPHA ANALYTICAL LABORATORIES, INC., DUBLIN, CA, AS THE "PRIMARY" CONTRACTOR, TESTAMERICA ANALYTICAL TESTING CORP., MORGAN HILL, CA, AS THE "SECONDARY" CONTRACTOR AND FGL ENVIRONNMENT AL, STOCKTON, CA, AS THE "THIRD" CONTRACTOR, FOR A TWO (2) YEAR AGREEMENT WITH THREE (3) ONE-YEAR EXTENSION OPTIONS AT THE SOLE DISCRETION OF THE CITY, FOR A TOTAL ESTIMATED ANNUAL COST OF $74,073 WHEREAS, on September 10,2001, the Regional Water Quality Control Board (Regional Board) issued a Water Code Section letter to the City requiring submittal of ambient receiving water and effluent data regarding priority pollutants, and WHEREAS, the letter requirements are in addition to the City's existing National Pollution Discharge Elimination System (NPDES) permit requirements for ambient and effluent monitoring, and WHEREAS, all samples required by the Regional Board must be Environmental Laboratory Accreditation Program certified, and WHEREAS, on March 28, 2006, Council approved Resolution No authorizing the Purchasing Supervisor to issue formal Request for Bids (RFB) for the furnishing of laboratory analytical testing services for the Public Works Department, Water Quality Control Division, for a two (2) year agreement, with three (3) one-year extension options at the sole discretion of the City, and WHEREAS, on March 29,2007, the Purchasing Division issued Request for Bid No for the furnishing oflaboratory analytical testing services to IF inancelkmasassolitem I

30 twenty-eight (28) prospective bidders, five (5) of which were local companies, posted the bid on the City's web site, and formally advertised as required by law, and WHEREAS, on May 22, 2007, RFB's were formally opened in the City Clerk's office. Of the twenty-eight (28) prospective bidders, five (5) companies chose to respond, and WHEREAS, based on providing responsive and responsible bids, City staff recommends the award of bid and contracts for the furnishing of Laboratory Analytical Testing Services for the Public Works Department, Water Quality Control Division, to Alpha Analytical Laboratories, Inc., Dublin, CA, as the "primary" contractor, TestAmerica Analytical Testing Corp., Morgan Hill, CA., as the "secondary" contractor and FGL Environmental, Stockton, CA, as the "third" contractor, for a two (2) year agreement, with three (3) one-year extension options at the sole discretion of the City, for a total estimated annual cost of $74,073, and WHEREAS, Modesto Municipal Code, Section , generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to be formally bid. The award of bid and contracts for the furnishing of laboratory analytical testing services for the Public Works Department, Water Quality Control Division, conforms to code. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby authorizes the award of bid and contracts for the furnishing of Laboratory Analytical Testing Services for the Public Works Department, Water Quality Control Division, to Alpha Analytical Laboratories, Inc., Dublin, CA, as the "primary" contractor, o 72407iF inancejkmasassolitem

31 TestAmerica Analytical Testing Corp., Morgan Hill, CA, as the "secondary" contractor and FGL Environmental, Stockton, CA, as the "third" contractor, for a two (2) year agreement with three (3) one-year extension options at the sole discretion of the City, for a total estimated annual cost of $74,073. BE IT FURTHER RESOLVED that the Purchasing Manager is hereby authorized to issue a purchase agreement for the furnishing of Laboratory Analytical Testing Services for the Public Works Department, Water Quality Control Division, Alpha Analytical Laboratories., Inc., Dublin, CA, as the "primary" contractor, TestAmerica Analytical Testing Corp., Morgan Hill, CA, as the "secondary" contractor and FGL Environmental, Stockton, CA, as the "third" contractor, for a two (2) year agreement with three (3) one-year extension options at the sole discretion of the City, for a total estimated annual cost of$74,073. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: ~ M~ Je Moms, City CJeTk APPROVED AS TO FORM: (\ l!!'j By: 1/\,. Susana Alca a Wood, Cit F inancelkmasassolitem

32 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AUTHORIZING THE AWARD OF BID AND CONTRACT FOR THE PURCHASE OF NINE (9) HONDA POLICE MOTORCYCLES TO CARMICHAEL HONDA MOTORSPORTS, CARMICHAEL, CA, FOR A TOTAL ESTIMATED COST OF $142,009. WHEREAS, the Public Works Department, Fleet Services Division has requested nine (9) new, current year/model, Honda Police Motorcycles, and WHEREAS, the Modesto Police Department currently has nine (9) Harley Davidson Police motorcycles. Based on a two (2) year replacement cycle, these motorcycles are scheduled to be replaced this year, and WHEREAS, rotation at the end of the two-year warranty shall result in a higher resale value and lower lifecycle costs on these motorcycles, and WHEREAS, the new Honda motorcycles come with a three (3) year warranty and will further improve the lifecycle costs, and WHEREAS, approximately one half of the police motorcycles have been replaced with Honda motorcycles, and this purchase will complete the motorcycle fleet change to Honda motorcycles, and WHEREAS, on August 2, 2006, Council approved Resolution No authorizing the Purchasing Manager to issue formal Request for Bids (RFB) for new vehicles and heavy equipment throughout FY 06/07 through various competitive processes, with the Purchasing Division coming back to Council for award authorization, and WHEREAS, on May 16, 2007, the Purchasing Division issued RFB No for the purchase of nine (9) Honda police motorcycles to nineteen (19) prospective lFinancelMtorreslitemll

33 bidders, one (I) ofwhieh is a local company, posted the bid on the City'S web site and formally advertised as required by law, and WHEREAS, on June 12,2007, RFB's were formally opened in the City Clerk's office, and WHEREAS, of the nineteen (19) prospective bidders, two (2) companies chose to respond. All bidders provided responsive and responsible bids, and WHEREAS, based on being deemed the lowest responsive and responsible bidder, City staff recommends the award of bid and contract for the purchase of nine (9) Honda police motorcycles to Carmichael Honda Motorsports, Carmichael, CA, for the total estimated cost of$142,009, and WHEREAS, Modesto Municipal Code Section , generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to be formally bid, and WHEREAS, the award of bid and contract for the purchase of nine (9) Honda police motorcycles conforms to the Modesto Municipal Code, and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby authorizes the award of bid and contract for the purchase of nine (9) Honda police motorcycles to Carmichael Honda Motorsports, Carmichael, CA, for the total estimated cost of$142,009. BE IT FURTHER RESOLVED that the Purchasing Manager is hereby authorized to issue a purchase order for the purchase of nine (9) Honda police motorcycles to Carmichael Honda Motorsports, Carmichael, CA, for the total estimated cost of $142, /FinancelMtorreslitem

34 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: GkCL-hM~ Je Morris, City Clerk APPROrED AS TO FORM: /FinancelMtorres/iteml

35 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AMENDING THE FISCAL YEAR ANNUAL BUDGET WHEREAS, a monthly financial analysis has been completed and it has been detennined that certain adjustments are required to the Annual Budget of the City of Modesto for the Fiscal Year , NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that appropriations, revenues, and transfers for the budget have been adjusted as shown on the Budget Request fonn(s). BE IT FURTHER RESOLVED that the Finance Director is hereby authorized to take the necessary steps to implement the provisions of this resolution. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Dunbar, who moved its adoption, which motion being duly seconded by Councilmember Hawn, was upon roll call carried and the resolution adopted by the following votes: AYES: NOES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour Councilmembers: None ABSENT: Councilmembers: Keating (seal) ATTEST: _--=(1,.i'F:" /l~ '="'M==",~~,-,::,:,,,--!,- J~RRlS,C1t)TCleIk APPROVED AS TO FORM: IF inancelwpadiliaiitem

36 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION ESTABLISHING GUIDELINES FOR REDUCED UTILITY RATES FOR LOW-INCOME SENIOR CITIZENS AND LOW-INCOME DISABLED PERSONS FOR METERED AND UNMETERED WATER SERVICES AND RESCINDING RESOLUTION NO WHEREAS, Sections and of the Modesto Municipal Code authorize the Council, by resolution, to establish charges for metered and unmetered water services and other utility charges, and WHEREAS, by Resolution No adopted on November 23, 2004, and which became effective January 1,2005, the City Council rescinded all previous water resolutions, established a single rate base, established fees for the provision of water, and all fees associated with water operations and management, and various other Council resolution establish rates for sewer, storm drain, and garbage service, and WHEREAS, Section No. 11 of Resolution No states that from time to time, by separate resolution the City may enact subsidies for certain categories of ratepayers, as the City Council may see fit, provided that the source(s) of funds to implement such subsidies are source( s) separate from the water enterprise fund, and WHEREAS, Resolution No , adopted by the Council on January 11, 2005, established guidelines for reduced utility rates for low-income senior citizens and low-income disabled persons for metered and unmetered water services and WHEREAS, the Finance Committee met on June 25, 2007, and supported staffs recommendation, and WHERESAS, by an agenda report to the City Council from the Finance Department, dated July 10,2007, City staff recommended the current utility discount program guidelines be amended as necessary to update the current income limit to reflect the amount established by the Department of Housing and Urban Development (HUD) /Finance/CDetmarlitem

37 for up to a two person household at 50% of Annual Median Area Income level and that the income level adjust automatically each year to equal the HUD 50% Median Area Income approved levels for Stanislaus County, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto as follows: SECTION 1. UTILITY DISCOUNT RATES AND REQUIREMENTS FOR LOW-INCOME SENIOR CITIZENS AND LOW-INCOME DISABLED PERSONS. The following utility discount rates and requirements for low-income senior citizens and low-income disabled persons shall apply as follows: Annual Income Levels Up to $22,400 (Up to 2-person household) Discount 25% for water, sewer, storm drain and garbage Program Requirements: Be 60 yrs or older and meet income levels. Have a documented medical card coded for disability. Reside at the address receiving the discount. Program participants will be re-certified every two-years for eligibility verifying eligibility with a birth certificate, proof of income, and Medicare card. Disabled citizens will verify eligibility with a medical card coded with a disability and must provide proof of income. The income level will be adjusted each year to equal the HUD 50% Median Area Income approved levels for Stanislaus County. SECTION 2. RESCIND. Resolution No is hereby rescinded effective July 31,2007 SECTION 3. EFFECTIVE DATE. This resolution shall go into effect and be in full force and operation on and after August 1, lFinance/CDetmar/item

38 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: (SEAL) Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: ~M~ JE MORRIS, City Clerk APPROVED AS TO FORM: F inance/cdetmarlitem

39 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION ALLOCATING $250,000 IN FY HOME ENTITLEMENT INVESTMENT PARTNERSHIP PROGRAM FUNDS FOR AFFORDABLE HOUSING PRELIMINARY PRE-DEVELOPMENT WORK AT 416 DOWNEY AVENUE; A PROPERTY OWNED BY THE CITY OF MODESTO. WHEREAS, the property and facility at 416 Downey Avenue is currently owned by the City of Modesto and managed by the Parks, Recreation and Neighborhoods Department, and WHEREAS, the property consists of a main facility that is approximately 2, I 00 square feet, two large out buildings, and a small paved rear parking area, and WHEREAS, the facility is a decommissioned fire station and is zoned C-I Neighborhood Commercial, and permit, and activities, and WHEREAS, housing structures would be permissible with an approved conditional use WHEREAS, in recent years, it has been used for a variety of community social service WHEREAS, the most recent tenant of the property has been the Alzheimer's Affiliates of Stanislaus County, and WHEREAS, in Spring 2006, the Alzheimer's Affiliates of Stanislaus contacted the City regarding a new rental agreement, and WHEREAS, representatives of the organization asked about having minor repairs made to the building, and WHEREAS, the Alzheimer's Affiliates organization is currently paying only utilities cost for the use of the building, and WHEREAS, before negotiation of a rental agreement, City staff conducted an inspection of the building and premises, and 07!24/2007IPR&NIC Eubanklitem

40 WHEREAS, this inspection showed significant safety and code violations that needed to be immediately addressed, and WHEREAS, the Alzheimer's Affiliates of Stanislaus County provides primarily information and referral services, but does conduct a large fund raising event in November, and WHEREAS, the City was able to have repairs made to the bottom floor of the facility in order for the Alzheimer's Affiliates organization to use the facility on a limited basis, and WHEREAS, while repairs have been made to the facility to address immediate safety issues, a significant amount of repairs are needed, and WHEREAS, staff estimates that a minimum of $213,300 in repairs is needed to bring the facility up to appropriate rental standards, and WHEREAS, HOME funds may not be used for maintenance or repairs, as this is not an eligible expense per program regulations, and staff estimates that the cost of demolishing the facility is approximately $16,000, which is an eligible expense if done in conjunction with the development of affordable housing, and WHEREAS, staff recommends that this site would be better used to provide affordable housing and would like to begin preliminary pre-development work which involves developing options for site use including a cost comparison of remodeling and expanding the existing facility or demolition of the existing structures and development of affordable housing, and WHEREAS, conceivable development scenarios could include units of housing for seniors or mixed use development with commercial on the bottom floor and housing on upper floors, and WHEREAS, according to HUD Community Planning and Development (CPD) Notice 96-9, HUD will allow pre-development "soft costs" including, but not limited to: project cost 07124/20071PR&N/C Eubanklitem

41 associated with environmental review, architectural & engineering services, public input process, property appraisal, preparation of processing for project loans and underwriting, preparation of work write-ups and work specifications and demolition, and WHEREAS, staff is assisting the Alzheimer's Affiliates of Stanislaus County to find a suitable location to continue services, the organization provides information and referral and has very little walk-in traffic, and WHEREAS, the City has a great need for more affordable housing for very-low and lowincome households, and WHEREAS, as indicated in the City of Modesto Housing Element, our share of regional housing needs for very-low income households is 3,360 units, and for low-income households 2,609 units, and WHEREAS, the facility is within close proximity to the City's Senior Center, other senior communities and services, making the development of senior affordable housing a potential option, and WHEREAS, the Citizens Housing and Community Development Committee (CH&CDC) met on May 18,2007, and supported staffs recommendation to allocate funding to predevelopment activities for the property a 416 Downey Avenue, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the Council hereby approves the allocation $250,000 in FY HOME Entitlement Investment Partnership Program Funds for affordable housing preliminary pre-development work at 416 Downey Avenue; a property owned by the City of Modesto. 07/ PR&NIC Eubanklitem

42 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember O'Bryant, who moved its adoption, which motion being duly seconded by Councilmember Hawn was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating Attest: JEAN MORRIS, City Clerk APPROVED AS TO FORM: By: 07/24/20071PR&N/C Eubankliteml

43 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AMENDING THE FY CAPITAL IMPROVEMENT BUDGET TO ESTABLISH A NEW CAPITAL IMPROVEMENT PROJECT, TO TRANSFER $250,000 IN HOME ENTITLEMENT INVESTMENT PARTNERSHIP FUNDS FROM , HOME FUND RESERVE, TO FUND 2330, CAPITAL GRANTS PARKS FUND, AND TO ALLOCATE SAID FUNDING TO THE NEW PROJECT P056, 416 DOWNEY STREET, TO FULLY FUND THE DOWNEY STREET PROPERTY PRE-DEVELOPMENT ACTIVITIES. WHEREAS, the property and facility at 416 Downey Avenue is currently owned by the City of Modesto and managed by the Parks, Recreation and Neighborhoods Department, and County, and WHEREAS, the most recent tenant has been the Alzheimer's Affiliates of Stanislaus WHEREAS, an inspection in 2006 showed significant safety and code violations that were immediately addressed, and WHEREAS, staff estimates that a minimum of $213,300 in additional repairs is needed to bring the facility up to appropriate rental standards, and WHEREAS, HOME funds may not be used for maintenance or repairs, as this is not an eligible expense per program regulations, and WHEREAS, staff recommends that this site would be better used to provide affordable housing and would like to begin preliminary pre-development work which involves developing options for site use including a cost comparison of remodeling and expanding the existing facility or demolition of the existing structures and development of affordable housing, and WHEREAS, conceivable development scenarios could include units of housing for seniors or mixed use development with commercial on the bottom floor and housing on upper floors, and WHEREAS, according to HUD Community Planning and Development (CPD) Notice 96-9, HUD will allow pre-development "soft costs" including, but not limited to: project cost PR&NlCEubankiitem

44 associated with environmental review, architectural & engineering services, public input process, property appraisal, preparation of processing for project loans and underwriting, preparation of work write-ups and work specifications and demolition, and WHEREAS, the City has a great need for more affordable housing for very-low and lowincome households, and WHEREAS, the facility is within close proximity to the City's Senior Center, other senior communities and services, making the development of senior affordable housing a potential option, and WHEREAS, the Citizens Housing and Community Development Committee (CH&CDC) met on May 18,2007, and supported staffs recommendation to appropriate funding for predevelopment activities for the 416 Downey Avenue property, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the Council hereby approves amending the FY Capital Improvement budget to transfer $250,000 in HOME Entitlement Investment Partnership Funds from , HOME Fund Reserve, to Fund 2330, Capital Grants Parks Fund, and to allocate said funding to the new project P056, 416 Downey Street, to fully fund the Downey Street Property pre-development activities. BE IT FURTHER RESOLVED that the Finance Director, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution. 7 J24/20071PR&N/CE ubanklitem

45 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember O'Bryant, who moved its adoption, which motion being duly seconded by Councilmember Hawn was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating Attest: _""'i(l,.~t.i...h""",:--,---:,-m----,-~"""-,,,,,,,,,,,,,,-,,,--- lean MORRlS, CIty Clerk APPROVED AS TO FORM: By: SUSA'liiXALALAW ~'City Attorney 7/24/2007 IPR&N/CEubankiitem

46 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING (MOU) FOR PRE-DEVELOPMENT ACTIVITIES FOR 416 DOWNEY AVENUE PROJECT, AS REQUIRED BY THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, AND THE DIRECTOR OF PARKS, RECREATION AND NEIGHBORHOODS, OR HIS DESIGNEE, TO EXECUTE THE MOU. WHEREAS, the property and facility at 416 Downey Avenue is currently owned by the City of Modesto and managed by the Parks, Recreation and Neighborhoods Department, and County, and WHEREAS, the most recent tenant has been the Alzheimer's Affiliates of Stanislaus WHEREAS, an inspection in 2006 showed significant safety and code violations that were immediately addressed, and WHEREAS, staff estimates that a minimum of $213,300 in additional repairs is needed to bring the facility up to appropriate rental standards, and WHEREAS, HOME funds may not be used for maintenance or repairs, as this is not an eligible expense per program regulations, and WHEREAS, staff recommends that this site would be better used to provide affordable housing and would like to begin preliminary pre-development work which involves developing options for site use including a cost comparison of remodeling and expanding the existing facility or demolition of the existing structures and development of affordable housing, and WHEREAS, conceivable development scenarios could include units of housing for seniors or mixed use development with commercial on the bottom floor and housing on upper floors, and WHEREAS, according to HUD Community Planning and Development (CPD) Notice 96-9, HUD will allow pre-development "soft costs" including, but not limited to: project cost 07/24/20071PR&N/C Eubanklitem

47 associated with environmental review, architectural & engineering services, public input process, property appraisal, preparation of processing for project loans and underwriting, preparation of work write-ups and work specifications and demolition, and WHEREAS, the City has a great need for more affordable housing for very-low and 10wincome households, and WHEREAS, the facility is within close proximity to the City's Senior Center, other senior communities and services, making the development of senior affordable housing a potential option, and WHEREAS, in order to meet HUD's requirements for committing funds, the City must execute a written agreement reserving a specific amount of funds to a specific local project per Section 24 of the Code of Federal Regulations (CFR), and WHEREAS, the written agreement must ensure that expenditures will be in compliance with the requirements of 24 CFR part 92, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the Council hereby approves a Memorandum of Understanding (MOU) for Pre-development Activities for 416 Downey Avenue Project, as required by the federal Department of Housing and Urban Development. BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the Memorandum of Understanding. BE IT FURTHER RESOLVED that the Director of Parks, Recreation and Neighborhoods, or his designee, is hereby authorized to execute the Memorandum of Understanding. 07/24/20071PR&N/C Eubanklitem

48 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember O'Bryant, who moved its adoption, which motion being duly seconded by Councilmember Hawn was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating Attest: _-'7(l...F"" fe=--' 1r..-'----'-M--uw""-'"''-'-'''.L6..''"''- 1EANMORRJS, CIty Clerk APPROVED AS TO FORM: By: 07/24/20071PR&N/C Eubankiiteml

49 MODESTO CITY COUNCIL RESOLUTION NO RESOLUTION AMENDING RESOLUTION NO TITLED "A RESOLUTION APPROVING A GRANT APPLICATION FOR $50,000 FROM THE LAND AND WATER CONSERVATION FUND FOR A PORTION OF THE TRAIL IN THE GATEWAY PARCEL OF THE TUOLUMNE RIVER REGIONAL PARK AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT" TO 1) AMEND THE PROJECT DESCRIPTION TO THE VIRGINIA CORRIDOR, SPECIFICALLY FOR INSTALLATION OF 615 FEET OF LINEAR TRAIL FROM THE SOUTHERN PORTION OF BOWEN AVENUE CONSTRUCTING SOUTHWARD AND 2) ADD STATE REQUIRED ADDITIONAL LANGUAGE STATING THAT THE PROJECT IS COMPATIBLE WITH THE LAND USE PLANS OF THOSE JURISDICTIONS IMMEDIATELY SURROUNDING THE PROJECT WHEREAS, the Congress under Public law has authorized the establishment of a Federal Land and Water Conservation Fund Grant-In-Aid program and its political subdivisions for acquiring lands and developing facilities for public outdoor recreation purposes, and WHEREAS, the California Department of Parks and Recreation is responsible for administration of the program in the State, setting up necessary rules and procedures governing applications by local agencies under the program, and WHEREAS, said adopted procedures established by the California Department of Parks and Recreation require the applicant to certify by resolution the approval of a grant application and the availability of eligible matching funds prior submission of said grant application to the State, and WHEREAS, staff has submitted an application for $50,000 in funding from the Land and Water Conservation Fund for the Virginia Corridor for installation of 615 feet of Linear Trail from the southern portion of Bowen Avenue constructing southward, and 07/24//07IPRNIB Hatcher/Item IS

50 WHEREAS, the proposed Virginia Corridor Trailway Project (the "Project") is consistent with the Statewide Comprehensive Recreation Resources Plan California Outdoor recreation Plan , and WHEREAS, the Project must be compatible with the land use plans of those jurisdictions immediately surrounding the Project, as follows: NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto 1. The filing of a grant application for $50,000 from the Federal Land and Water Conservation Fund Program is hereby approved. 2. The Council hereby certifies that said agency has matching funds from the following source: local Parks Capital Facilities Fees; and that said agency can finance 100 percent of the Project, half of which will be reimbursed. 3. The Council hereby certifies that the Project is compatible with the land use plans of those jurisdictions immediately surrounding the Project. 4. The City Manager, or his designee, is hereby authorized as agent of the applicant to conduct all negotiations and execute and submit all documents, including, but not limited to, applications, contracts, amendments, payment requests, and compliance with all applicable current state and federal laws, which may be necessary for the completion of the aforementioned Project upon acceptance of said grant by the City Council. 07/241107IPRN/B Hatcherl1tem

51 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating Attest: APPROVED AS TO FORM:,e,'.. I, t By: \ (~~, SUSANA AL ALA WOOD,~ ity Attorney 07/241107IPRNIB Hatcheriitem H45

52 City of Modesto Class Range Table - General Non-Sworn Classes Page 3 RANGE TITLE 120 Accountant I Assistant Electrician Fire Prevention Technician" Laboratory Analyst I Senior Equipment Operator Traffic Painter Crewleader Wastewater Treatment Plant Operator I Water Resource Specialist I Welder/Fabricator Equipment Mechanic Fire Equipment Mechanic Law Enforcement Academy Recruit Tree Trimmer Crewleader 123 Airport Maintenance Crewleader Civil Engineering Technician" Identification Technician I Maintenance Mechanic Crewleader - Parks 124 Community Development Program Specialist I Cross Connection Specialist Environmental Compliance Inspector I Heavy Equipment Mechanic Laboratory Analyst" Operation and Maintenance Crewleader Planning Assistant Plant Mechanic Wastewater Treatment Plant Operator II Water Conservation Specialist Water Production Operator I Water Resource Specialist" Water Services Equipment Operator I Water Distribution Operator III 125 Crime Analyst Exhibit "A"

53 City of Modesto Class Range Table - General Non-Sworn Classes Page 4 RANGE TITLE Equipment Mechanic Crewleader Housing Financial Specialist Housing Rehabilitation Specialist I Wastewater Treatment Plant Operator III Civil Engineering Assistant Identification Technician II Senior Fire Equipment Mechanic Building Inspector I Community Development Program Specialist II Electrician Environmental Compliance Inspector II Heavy Equipment Mechanic Crewleader Instrument Repair Technician Water Production Operator II Water Services Equipment Operator II Construction Inspector Housing Rehabilitation Specialist II Laboratory Analyst III Project Coordinator Senior Wastewater Treatment Plant Operator 131 Senior Civil Engineering Assistant 132 Building Inspector II Environmental Review Specialist Senior Environmental Compliance Inspector Water Division Crewleader Deputy Fire Marshal Plan Review Engineer Senior Construction Inspector 136 Senior Building Inspector Exhibit "A"

54 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF MODESTO AND THE MODESTO MANAGEMENT AND CONFIDENTIAL ASSOCIATION (MCMA) FOR A TERM OF JULY 24,2007 THROUGH JUNE 23, WHEREAS, the Memorandum of Understanding (MOU) between the City of Modesto (CITY) and the Modesto Confidential and Management Association (MCMA) expired on June 25, 2007, and WHEREAS, representatives of the CITY and the MCMA have met and conferred in good faith concerning wages, hours, terms and conditions of employment for employees in said bargaining unit, and WHEREAS, pursuant to an Agenda Report dated July 12,2007, a copy ofwmch report is on file in the office of the City Clerk, the CITY and MCMA have reached agreement on a new MOU which, upon execution, shall be attached hereto and made a part hereof, and WHEREAS, the MOU provides as follows: SECTION 1. SALARY. A minimum of2.5% across-the-board salary increase effective July 24, 2007, subject to Pay for Performance criteria, with a maximum increase eqnal to any acrossthe-board increase granted employees represented by the Modesto City Employees' Association (MCEA) or the Modesto Police Non-Sworn Association (MPNSA) during the term of this MOU. This provision for a maximum increase equal to MCEA or MPNSA shall expire on June 23, IPersonnelfRRenwick/item

55 SECTION 2. HEALTH, DENTAL AND VISION BENEFITS. The City's contribution to employees' Health, Dental and Vision coverage shall be as follows: Family Single Opt Out 7/24/07 $ SECTION 3. BILINGUAL COMPENSATION. Compensation for those employees certified and assigned as Bilingual translators shall change from the current three (3) hours of compensatory time off per payperiod, to $50.00 per payperiod and shall be available to all non-exempt employees. SECTION 4. LABOR MARKET SURVEY. A market survey is to be undertaken and is anticipated to commence no later than October 15, The parties will meet and confer on the labor market agencies to be surveyed. Final labor market data is anticipated to be available for subsequent negotiations by March 24, 2008, and the parties agree to expeditiously begin negotiations once the final data is available. SECTION 5. RETIREE HEALTH PROGRAM. The parties have agreed to continue meeting and evaluating alternatives to the current Retiree Health Program structure. If the parties are able to identify an acceptable alternative, negotiations will commence on its implementation. MCMA has reiterated the Association's intention to link enhanced Retirement to Retiree Health negotiations. SECTION 6. ADDITIONAL CHANGES. Other negotiated additions, deletions or amendments to the text of the Memorandum of Understanding deal with alternative work schedules, grievance procedure, bus passes, as well as pending items related to personnel rules and to succession planning, and WHEREAS, the Council considered this matter at its meeting of July 24, 2007, lPersonnellRRenwickJitem

56 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Memorandum of Understanding (MOU) between the City of Modesto and the Modesto Confidential and Management Association (MCMA), which covers a term from July 24,2007 through June 23, 2008, and upon execution of same, a copy of the MOU will be on file in the office of the City Clerk. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Dunbar, who moved its adoption, which motion being duly seconded by Councilmember Hawn, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating Attest: ficuj Hru ffi JE MORRIS, CIty Clerk APPROVED AS TO FORM: By: IPersonneIIRRenwick/item

57 MEMORANDUM OF UNDERSTANDING between the CITY OF MODESTO and the MODESTO CONFIDENTIAL AND MANAGEMENT ASSOCIATION July 24,2007 through June 23, 2008

58 TABLE OF CONTENTS PREAMBLE ARTICLE 1. ARTiCLE 2. ARTICLE 3. ARTICLE 4. ARTICLE 5. ARTICLE 6. ARTICLE 7. ARTiCLE 8. ARTICLE TERM CITY MANAGEMENT RIGHTS... 1 REPRESENTATION RENEGOTIATIONS SALARY RATES AND STEP ADVANCEMENTS... 2 PERFORMANCE EVALUATION PROBATION PAY PERIOD DEFINITION...; WORKWEEK DEFiNITION... 5 ARTICLE 10. STANDARD TOUR OF DUTY ARTICLE 11. APPROVED WORK SCHEDULES ARTICLE 12. LEAVE USAGE ACCRUALS... 6 ARTICLE 13. REST PERIODS FOR NON-EXEMPT EMPLOYEES... 6 ARTICLE 14. OVERTIME FOR NON-EXEMPT EMPLOYEES ARTICLE 15. CALL-DUTY PAY ARTICLE 16. CALL-BACK PAY FOR NON-EXEMPT EMPLOYEES ARTICLE 17. ACTING AND OUT-OF-CLASS PAY ARTICLE 18. MANAGEMENT/CONFIDENTIAL LEAVE ARTICLE 19. VACATION ARTICLE 20. HOliDAyS ARTICLE 21. SICK LEAVE ARTICLE 22. CATASTROPHIC LEAVE ARTICLE 23. BEREAVEMENT LEAVE ARTICLE 24. LEAVES OF ABSENCE Effective Date: 7/24/07 MCMAMOU

59 ARTICLE 25. JOB SHARING ARTICLE 26. LICENSE, CERTIFICATES, REGiSTRATION ARTICLE 27. PAY DIFFERENTIALS ARTICLE 28. DRESS, GROOMING AND UNIFORMS ARTICLE 29. VEHICLE ALLOWANCE ARTICLE 30. DEFERRED COMPENSATION ARTICLE 31. HEALTH, DENTAL, VISION INSURANCE ARTICLE 32. RETIREE HEALTH INSURANCE ARTICLE 33. EMPLOYEE ASSISTANCE PLAN ARTICLE 34. LONG TERM DISABILITY insurance ARTICLE 35. LIFE INSURANCE ARTICLE 36. RETIREMENT ARTICLE 37. EDUCATIONAL AND TRAINING ALLOWANCES ARTICLE 38. ANNUAL PHYSICAL EXAMINATION ARTICLE 39. OUTSIDE EMPLOyMENT ARTICLE 40. LAYOFF AND DEMOTION PROCEDURES UPON REDUCTION IN FORCE ARTICLE 41. GRIEVANCE PROCEDURE ARTICLE 42. DISCIPLINARY ACTIONS ARTICLE 43. DISCIPLINARY APPEALS ARTICLE 44. TIME BANK ARTICLE 45. CREDIT ASSOCIATION DEDUCTIONS ARTICLE 46. COMMUTER BUS PASSES ARTICLE 47. EMPLOYEE PARKING ARTICLE 48. NON DISCRIMINATiON ARTICLE 49. PENDING ISSUE ARTICLE 50. JOB ACTIONS Effective Date: 7/24/07 MCMAMOU

60 ARTICLE 51. SEVERABILITy ARTICLE 52. PROVISIONS OF LAW ARTICLE 53. APPROVAL EXHIBIT 1 EXHIBIT 2 EXHIBIT 3 CLASSIFICATIONS AND SALARY RANGES SCHEDULE OF SALARY RANGES IN CITY SERVICE FOR FY MCMA APPROVED ALTERNATE WORK SCHEDULES ATTACHMENT A: DEFINITIONS Effective Date: 7/24/07 MCMAMOU

61 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MODESTO AND THE MODESTO CONFIDENTIAL AND MANAGEMENT ASSOCIATION July 24, June 23, 2008 PREAMBLE It is the purpose of this Memorandum of Understanding (hereinafter referred to as "MOU") to set forth the wages, hours and other terms and conditions of employment for employees represented by the Modesto Confidential and Management Association (hereinafter referred to as "MCMA"), ARTICLE 1. TERM Term: The term of this MOU shall commence at 12:01 a,m, on July 24, 2007, and this MOU shall expire and otherwise be fully terminated at 12:00 a,m, (midnight) of June 23, ARTICLE 2. CITY MANAGEMENT RIGHTS The City of Modesto (hereinafter referred to as "CITY") retains the exclusive right, except as expressly stated herein, to operate and direct the affairs of the CITY in all of its various aspects, including, but not limited to, the right to direct the working forces; to plan and control all of the operations and services of the CITY; to determine the methods, means, and organizations by which such operations and services are to be conducted; to assign and transfer employees; to hire, promote, demote, suspend, discipline, discharge or relieve employees due to lack of work or other legitimate reasons; and to change or eliminate existing methods, equipment or facilities, ARTICLE 3. REPRESENTATION This MOU covers the employees in the position classifications of CITY, which MCMA is certified as representing, and MCMA is the formally recognized employee organization which has the exclusive right to represent said employees during the term of this MOU, (See Exhibit 1: Classifications and Salary Ranges.) ARTICLE 4. RENEGOTIATIONS A Negotiations shall begin no later than ninety (90) calendar days prior to the termination date of this MOU, The parties shall notify one another of the names of their designated representatives at least thirty (30) days in advance of the first meeting, B. When negotiating an MOU, MCMA shall be represented by no more than four (4) employees who shall be released from active duty and will not lose wages or benefits when negotiating, The Association may designate a professional representative to participate in negotiations, Effective Date: 7/24/07 MCMAMOU

62 MCMA employees shall have their work hours and/or duty days adjusted so that they will be on active duty during negotiations whenever possible. No employee shall receive overtime for time spent negotiating if it is not possible to adjust their work schedule. Participation in negotiations does not release any employee from responsibilities of their full-time employment requiring immediate attention or action (for example, scheduled court appearances or emergency call-back). C. The CITY and MCMA agree to discuss the use of the methods and principles of Interest Based Negotiations (IBN) when a successor agreement to this MOU is negotiated. Discussions regarding the use of IBN shall occur at least nine (9) months prior to the expiration of this MOU. Should the parties agree to use IBN to negotiate a successor agreement, the CITY will arrange for IBN training. The training shall be conducted at least four (4) months prior to the expiration date of this MOU. Prior to the training, the Association will designate no more than six (6) MCMA members (including a professional representative if applicable) to receive the training. At the CITY's option, the number of MCMA participants may be increased. This training may be conducted in conjunction with the training of other employees or other agencies. ARTICLE 5. SALARY RATES AND STEP ADVANCEMENTS The base salary ranges shown in Exhibit 1 (Classifications and Salary Ranges) shall be applicable for classifications in this Unit for the period commencing July 24, 2007 and the salary rates shall be as provided in Exhibit 2 (Schedule of Salary Ranges FY 07-08) effective July 24, Classifications, Job Titles and Salary Ranges may be amended from time to time by Resolutions adopted by the City Council. The salary rates designated in Exhibit 2 reflect a three (3%) percent increase over the previous salary rates. The initial salary rates effective July 24, 2007, reflected a two and one-half (2.5%) percent increase and were subsequently adjusted upward by one-half (0.5%) percent, for a total of three (3%) percent. This additional adjustment was pursuant to the parties' agreement that MCMA's increase effective July 24, 2007 would be a minimum of two and one-half (2.5%) percent and a maximum equal to any across-theboard salary increase granted to the Modesto City Employees Association (MCEA) or the Modesto Police Non-Sworn Association (MPNSA) during the term of this MOU. MPNSA was granted a three (3%) percent increase effective July 24, 2007, resulting in the MCMA salary adjustment. This provision for a maximum increase equal to MCEA or MPNSA shall expire on June 23, A. For purposes of this MOU, base salary range shall mean the salary range assigned to a specific classification as provided in Exhibit 1. Base salary rate shall mean the hourly rate of pay established pursuant to the step placement within the base salary range as provided in this MOU. B. Paid time shall be based upon the base salary rate with the computation rounded to the nearest cent. Effective Date: 7/24/07 2 MCMAMOU

63 C. Each salary range shall consist of nine (9) steps, 1 through 9, at 2.5% increments. Progression through the steps shall be based upon both length of service and job performance. 1. Step 1 will normally be paid upon initial employment. The initial salary may be set at a higher step only upon approval of the Department Director. In cases of exceptional performance, employees hired at higher than Step 1 may be considered for their first step increase after thirteen (13) pay periods. 2. Employees hired at Step 1, shall be considered for a step increase upon completion of thirteen (13) pay periods. An overall "Meets Expectations" rating will result in a one-step (2.5%) increase. An overall rating of "Exceeds Expectations" will result in a two-step (5%) increase. Consideration for subsequent step increases shall be at intervals of twenty-six (26) pay periods until Step 9 is attained. 3. Employees hired at other than Step 1 shall normally be considered for a step increase upon completion of twenty-six (26) pay periods, and consideration for subsequent step increases shall be at intervals of twenty-six (26) pay periods until Step 9 is attained. 4. Accelerated step increases within the established salary range may be granted in addition to those above, upon approval of the City Manager. 5. When a step increase is denied, there shall be no reconsideration until the employee's next scheduled performance evaluation in twenty-six (26) pay periods. There is no right of appeal to the withholding of a step increase, but the reasons for withholding the increase shall be given in writing to the employee. "Withholding of a step increase" is defined as denial of the minimum 2.5% step increase. The employee may contest the withholding of the step increase, in writing, beginning with the rater's supervisor and ending with the Department Director. The decision of the Department Director shall be final. 6. Due to inferior work, lack of application, indifferent attitude or other legitimate reasons, a non-exempt employee's step may be reduced to a lower step. For exempt employees, performance deficiencies may be cause for any FLSAcompliant action, in accordance with applicable law. There is no right of appeal under ARTICLE 43 (DISCIPLINARY APPEALS) due to the lowering of steps, but the reasons for reduction shall be given in writing to the employee. An employee may contest the lowering of a step through the process in ARTICLE 41 (GRIEVANCE PROCEDURE). 7. All other salary administration policies shall be as contained in the Personnel Rules and Personnel Administrative Orders. Effective Date: 7/24/07 3 MCMAMOU

64 ARTICLE 6. PERFORMANCE EVALUATION A. The CITY and MCMA agree to use the "Performance Management Guidelines" as the recognized evaluation process. There shall be periodic performance evaluations of all employees, which shall be discussed with the employee and made a matter of record. If the evaluation shows that an employee's work does not meet expectations, the supervisor shall take appropriate steps to encourage improvement and may set a definite period of time in which improvement is expected. For non-exempt employees, failure to achieve satisfactory improvement may be cause for demotion, reduction in pay, suspension or dismissal. For Exempt employees, failure to achieve satisfactory improvement may be cause for any FLSA-compliant action, in accordance with applicable law. B. The CITY's "Pay for Performance" program shall be amended as follows: 1. Provide that progression through all nine (9) steps of the salary range be based on a "Meets Expectations" overall rating resulting in a one (1) step (2.5%) increase and an "Exceeds Expectations" overall rating resulting in a two (2) step (5%) increase. 2. Employees at, or above, Step 7 who fail to maintain an overall rating of "Exceeds" will not be V-rated. C. The parties acknowledge that a performance-based compensation plan, one in which compensation and recognition are tied to performance, is very desirable and remains a stated goal of the CITY organization. The CITY and MCMA agree to jointly explore compensation models in support of this goal. ARTICLE 7. PROBATION A. All original and promotional appointments shall be tentative and subject to a probationary period of one year from the date of appointment to the position. The purpose of the probationary period is to train, observe and evaluate the employee on conduct, performance, attitude, adaptability and job knowledge. 1. Initial Probation: It is understood that the probationary period will normally last for one year from the date of appointment, but may last longer than the one year if absences, either paid or unpaid, cause the probationary employee to work less than 1680 hours. In the event that an employee works less than 1680 hours in the first twelve months of employment, then the employee's probation shall be extended until he/she has worked 1680 hours. 2. Promotional Probation: It is understood that the probationary period, upon promotion, will normally last for one year from the date of promotion, but may last longer than the one year if absences, either paid or unpaid, cause the probationary employee to work less than 1560 hours. In the event that an employee works less than 1560 hours during the twelve months following his/her promotion, then the employee's probation shall be extended until he/she has worked 1560 hours. Effective Date: 7/24/07 4 MCMAMOU

65 B. During the probationary period an employee may be released at any time without right of appeal. Written notice of release shall be furnished to the probationer. C. An employee released during or at the conclusion of probation following a promotion, shall be reinstated to the position previously held, at the former salary step, except if the reasons for release are cause for dismissal. ARTICLE 8. PAY PERIOD DEFINITION A pay period is defined as the fourteen (14) calendar day period from 12:01 a.m. Tuesday to 12:00 a.m. (midnight) Monday two weeks thereafter. The first full pay period under this MOU shall commence at 12:01 a.m., Tuesday, July 24,2007. ARTICLE 9. WORKWEEK DEFINITION The workweek is 12:01 a.m. Tuesday to 12:00 a.m. (midnight) the following Monday. Department Directors and individual employees may agree to modify the workweek in order to facilitate flexible work hours. ARTICLE 10. STANDARD TOUR OF DUTY The standard tour of duty represents the time that an employee is regularly scheduled to work. A regularly scheduled tour of duty, which commences before midnight and ends the following day shall be reported for payroll purposes as time worked for the day in which the tour of duty began. ARTICLE 11. APPROVED WORK SCHEDULES A. The CITY has the right to implement work schedules, other than the traditional 5/2 schedule, to meet the needs of the organization and the individual departments. Prior to implementation of an alternate schedule, the CITY shall meet and confer with MCMA on the impacts of the alternate schedule. Work schedules currently authorized are described below. B. 9/80 and 4/10 Work Schedule The 9/80 and 4/10 work schedules may be approved for classifications or positions that are overtime-eligible. These schedules may also be approved for 1) exempt first-line supervisory classifications when the CITY desires that the supervisor work the same schedule as his/her subordinates, and for 2) exempt professional or para-professional classifications where such work schedules will not interfere with the employee's ability to coordinate with other staff. C. 4/11 and Modified 4/10 Schedules These schedules rnay only be approved for exempt first-line supervisory classifications in the Police Department when the CITY desires that the supervisor work the same schedule as his/her subordinates. Effective Date: 7/24/07 5 MCMAMOU

66 D. Exempt employees working alternate schedules will be expected to attend CITY meetings or attend to CITY business on their days off, should the need arise. E. Positions or classifications not meeting the criteria designated in paragraphs Band C, above, are not eligible for these alternate work schedules, except that the City Manager, or designee, may authorize exceptions. F. A Department Director may require implementation of these schedules for one, or more, eligible employees, based on the needs of the CITY. An employee in these eligible classifications or positions may also request one of these work schedules. Any request for one of these alternate work schedule must be justified and approved by the Department Director. All approved requests will be forwarded to the Personnel Department for processing. The 9180 work schedule shall not be effective until Personnel has officially changed the employee's workweek, as outlined in Exhibit 3, attached. A Department Director may discontinue an alternate work schedule for one, or more, employees after written notification to each employee and after the Personnel Department has processed this change, including officially changing the employee's workweek, if needed. ARTICLE 12. LEAVE USAGE ACCRUALS All leave accrual, including the accrual of overtime, shall be recorded on a minute-forminute basis. All leave usage, including the use of overtime, shall be recorded and used on a minute-for-minute basis. ARTICLE 13. REST PERIODS FOR NON EXEMPT EMPLOYEES Rest periods may be granted daily in accordance with the requirements of the department. Rest periods shall not exceed 15 minutes each and shall be considered as time worked. ARTICLE 14. OVERTIME FOR NON-EXEMPT EMPLOYEES A. Policy. It is the policy of the CITY to discourage overtime except when necessitated by abnormal or unanticipated workload situations. It is the responsibility of Department Directors to arrange for the accomplishment of workload under their jurisdiction within the normal tour of duty of employees. Each department shall keep complete and accurate records of all overtime earned in every pay period. The CITY has the right to require each employee to work overtime as necessary. To the extent possible and in the sole discretion of the Department Director, overtime will be distributed equitably among qualified employees within the department. Effective Date: 7/24/07 6 MCMAMOU

67 B. Definition. Overtime is defined as hours actually worked in excess of forty (40) hours in a workweek. Paid leave shall be considered as time actually worked for purposes of computing overtime. Overtime shall not affect leave accruals. C. Overtime Compensation. Any employee authorized by the Department Director or authorized representative to work overtime shall be compensated at premium rates, i.e. one and one-half (1%) times the employee's regular hourly rate of pay. Upon an employee's request, overtime may be compensated as compensatory time off (CTO). CTO shall be credited at time and one-half. Overtime and CTO shall be recorded and used on a minute-for-minute basis. Each employee will be paid, as part of the last paycheck received in September, December, March and June for all compensatory time over one hundred and sixty (160) hours. For employees hired on, or after, October 4, 2005, quarterly payment shall be for all hours over one hundred (100). Employees may request payment of compensatory time to be included as part of a regular paycheck so long as the request is for at least twenty (20) hours and sufficient notice, as determined by the Finance Director, is provided. Compensating time off may be taken at the request of the employee and with the approval of the Department Director or designee, in accordance with FLSA regulations. Compensating time off will be taken in straight time hours. Prior to the promotion, reclassification or change to FLSA exempt status of an employee, all compensating time off shall be taken or paid at the employee's then current regular rate of pay. D. Wash Time. A Department Director, with the concurrence of the affected employee, may arrange for that employee to take such time off at straight time as is necessary to insure that the employee's actual time worked does not exceed forty (40) hours within a given workweek. E. Meal Allowance. An employee required to work for four (4) or more continuous hours beyond the scheduled shift on emergency work, or for four (4) or more consecutive hours of work when on Call Duty or Call Back, or called out after the end of shift for four (4) or more continuous hours, shall be compensated ten dollars ($10.00) for a meal allowance. Only one ten-dollar ($10) payment shall be made per shift, unless the employee works four (4) or more consecutive hours, is released from duty, and must return for four (4) or more hours in the same shift. ARTICLE 15. CALL-DUTY PAY A. Non-exempt employees, (as defined in D below) who are released from active duty but are required by the department to leave notice where they can be reached and be available to return to active duty when required by the department, shall be assigned to call-duty. While on call-duty (sometimes referred to as on-call), an employee shall be free to use the time for his or her own purposes. Effective Date: 7/24/07 7 MCMAMOU

68 B. Call-duty requires that employees so assigned shall: (1) leave a telephone number where they can be reached or wear a communicating device; and (2) be able to respond to duty within a reasonable period of time, not to exceed thirty (30) minutes. Call-duty time shall not count as hours worked. C. Assigned personnel shall receive call-duty pay in the amount of two (2) hours pay on their regularly scheduled workday and four (4) hours pay on the employee's regularly scheduled days off and fixed CITY holidays. D. System Technicians are the only positions authorized to receive call-duty pay. During the term of this MOU, if a Department Director, with the concurrence of the Personnel Director, assigns any other non-exempt position(s) to call-duty, assigned personnel shall be subject to the restrictions and entitled to the compensation provided by this Article. ARTICLE 16. CALL-BACK PAY FOR NON-EXEMPT EMPLOYEES A. When a non-exempt employee (as defined in D below) returns to active duty at the request of the Department Director after the employee has been released from active duty, the employee shall be entitled to call-back compensation. B. The following incidents are not considered call-back and are compensated on a time and one-half basis: 1. Planned overtime for which the employee has received a minimum of twentyfour (24) hours advance notice; 2. Overtime associated with assigned Call-Duty as described in ARTICLE 15. CALL-DUTY PAY; 3. Overtime which occurs as an extension of an employee's regular workday; 4. When an employee begins work at the request of the Department within ninety (90) minutes prior to the scheduled start of their regular work shift. C. When on call-back, an employee receives the following compensation: 1. Three (3) hours of straight time per call-back occurrence; 2. In addition to the three (3) hours of straight time, an employee shall be paid one and one-half (1%) time for actual time worked in excess of eighty (80) minutes. D. Systems Technicians are the only positions authorized to receive call-back pay. During the term of this MOU, if a Department Director, with the concurrence of the Personnel Director, designates additional position(s) as subject to call-back, assigned personnel shall be entitled to the compensation provided by this Article. Effective Date: 7/24/07 8 MCMAMOU

69 ARTICLE 17. ACTING AND OUT-OF-CLASS PAY A. Acting Pay: Employees directed to work continuously in a vacant higher level regular position shall, subject to the other provisions of this paragraph, receive a salary increase to the higher level for the time actually worked in excess of twenty (20) work days. Such increase shall be determined as if the assignment had been a promotion retroactive to the first day of such assignment. For purposes of this Article, a vacant position is defined as an authorized regular position that is unoccupied due to attrition or due to the incumbent being on an extended leave of absence. Requests for higher compensation must be approved by the Personnel Director. Such requests may only be approved upon certification by the Department Director that the assigned employee meets the minimum training and experience guidelines and is assigned and held responsible to perform fully the full scope of duties normally associated with the higher level position. In the event that an eligible list exists for the vacant position, the list will be consulted before making the acting pay assignment. Assignment rotations among qualified staff are encouraged unless such rotations would considerably disrupt the operations of the department(s). B. Out-of-Class Pay: At the request of the Department Director, the Personnel Director shall authorize additional compensation for an employee, if it is determined that an employee has been directed to work continuously in a higher classification or at a higher level of responsibility for the time actually worked in excess of fifteen (15) work days. It is the responsibility of the Personnel Director to approve or disapprove such requests. In the event of a dispute, the decision is subject to review by the City Manager and is not subject to the Grievance Procedure. C. Duration of Assignment: Initially, an Acting Assignment or an Out-of-Class Assignment shall be limited to a term of twelve (12) consecutive months for anyone employee. Requests to extend the assignment beyond twelve (12) months will require review and approval by the Department Director and the Personnel Director. If approved, the extension of the assignment shall be for a maximum of six (6) additional months. One additional extension of six (6) months, beyond the first six (6) month extension, may be authorized with the approval of the City Manager or Deputy City Manager. ARTICLE 18. MANAGEMENT/CONFIDENTIAL LEAVE A. Employees in regular positions shall be granted Management or Confidential Leave with pay each year, to be taken at the discretion of the employee and upon approval by the Department Director. Said leave shall be advanced with the first paycheck to be paid each calendar year and must be taken off prior to the next calendar year's advance. Partial cash out of unused leave is available in December of each year, to the maximums listed, below. Leave not used before the end of the calendar year period for which it is advanced will be forfeited. Effective Date: 7/24/07 9 MCMAMOU

70 Annual Leave Maximum Cashout )ljlal1~9e'lrlll~ntt::rllpl(ri~e'l_~.exe'lrllpt houccr..::s...;.. 4.Q_h()LJrs :1\ E'lrll.ElntE:l11pl ()~ElEll>IQ\lE'lrtil11.El... E:li 9 i b I e 20 hours 19()nfidentialE:l11pl()~Eles... <...,20 hours 18 hours B. An employee hired after ManagemenUConfidential Leave has been advanced for the calendar year shall be eligible for a pro-rated portion of Leave. C. In the event of separation from CITY employment of any employee who has taken ManagemenUConfidential Leave prior to the time all of said leave is earned, the employee shall be required to make full restitution to the CITY of that portion of leave taken but remaining unearned on the date of separation from employment. Employees separating from CITY service will not be paid for unearned leave time but will be paid for earned leave time. ARTICLE 19. VACATION A. The following vacation accrual rates shall be established for regular employees: Annual Vacation Accrual Rate 80 hours 88 hours 96 hours 104 hours 112 hours 120 hours 128 hours 136 hours 144 hours 152 hours 160 hours 164 hours 168 hours 172 hours 176 hours 180 hours 184 hours 188 hours 192 hours 196 hours 200 hours Years of Service ormore B. Employees may not accrue vacation time in excess of twice their annual vacation accrual rate, provided that no employee shall lose vacation time to meet the needs of the service. Requests for vacation accrual in excess of the cap will require City Manager approval. Effective Date: 7/24/07 10 MCMAMOU

71 C. All vacation leave must be approved by the Department Director or designated representative. D. Employees in regular positions shall accrue, on a pro-rata basis, vacation leave for completed pay periods. Such vacation leave shall be available for use on the first day following the pay period in which it is earned. Employees in regular positions budgeted less than eighty (80) hours per pay period or job shared positions shall receive vacation leave accumulation on a pro-rata basis. E. Negative Vacation. Effective January 24, 2006, employees shall not be permitted to take vacation in advance of accrual, except in extenuating circumstances, as determined by the City Manager or designee. Use of vacation in advance of accrual shall not be authorized if the employee has other applicable leave time available. Any request for use of vacation in advance of accrual shall include a method and timeline for offsetting the negative vacation balance, as well as authorization from the employee for the City to recover any negative balance still owed to the City upon the employee's separation from service. Such recovery shall be first from the employee's final paycheck and then by either personal payment from employee or by a withdrawal from the employee's deferred compensation account. F. Vacation leave shall be compensated at the employee's regular hourly rate of pay. G. With the approval of the City Manager, an employee about to retire, or who is to be laid off, may utilize their accrual prior to the effective date of any such retirement or lay-off. In-lieu of such vacation the employee may elect a lump sum payment for accrued vacation time upon separation from the CITY. All other employees shall be paid at their regular rate of pay for all hours accrued at time of separation from the CITY. ARTICLE 20. HOLIDAYS A. Fixed Holidays. All employees in regular positions, except those employees assigned to a 4/11 or modified 4/10 schedule, shall be entitled to the following fixed holidays: New Year's Day Presidents' Day Independence Day Veterans' Day Day after Thanksgiving Day Martin Luther King, Jr. Day Memorial Day Labor Day Thanksgiving Day Christmas Day The 4/11 and modified 4/10 schedules do not recognize fixed holidays. All holiday time for employees on these two schedules shall be as defined in paragraph N, below. B. Floating Holiday. Employees in regular positions shall be entitled to floating holiday time of eight (8) hours on a 5/2 or nine (9) hours on a 9/80 schedule, and ten (10) hours on a 4/10 schedule, provided that the employee is on the payroll during the entire pay period in which such floating holiday time is to accrue. "Entire pay period" shall mean that an employee must have been hired prior to or at the start of the pay period and not have separated prior to the end of the pay period and was paid for at least one-half (1/2) of the Effective Date: 7124/07 II MCMAMOU

72 scheduled hours. Floating holiday time shall be accrued during the pay period in which January 1 falls. Floating holiday time for employees on a 4/11 or modified 4/10 schedule is included in their eighty-eight (88) hours of holiday credit defined in paragraph N, below. C. Floating holidays accrued shall be available for use the first day following the pay period in which they are accrued, and shall be scheduled with the approval of the Department Director or designee. D. Employees in regular positions budgeted less than eighty (80) hours per period or jobshared positions shall receive fixed and floating holiday accruals on a pro-rata basis. E. If a fixed holiday falls on an employee's regularly scheduled workday, the employee shall be entitled to a total of eight (8), nine (9) hours or ten (10) hours (a full work shift) of holiday time off depending on their current work schedule. F. If a fixed holiday falls on a Saturday, the preceding Friday will be observed as the fixed holiday. If a fixed holiday falls on a Sunday, the succeeding Monday will be observed as the fixed holiday. G. If a fixed holiday falls on an employee's regularly scheduled day off, the full time employee shall be entitled to a total of eight (8) hours of holiday compensatory time. H. Non-exempt employees working on fixed holidays shall be compensated at time and onehalf (1-1/2) for time actually worked, irrespective of hours actually worked in this workweek. In no event shall such an employee be compensated for working a fixed holiday in excess of one and one-half (1-1/2) times the employee's regular hourly rate of pay plus hour-for-hour holiday compensatory time, except as provided in ARTICLE 15 (CALL BACK). I. Whenever an employee is directed to work on a fixed holiday, which falls on the employee's regularly scheduled work day, the employee shall accrue, on an hour-for-hour basis, up to a total of regularly scheduled hours (8 or 9 or 10 respectively) of holiday compensatory time. J. Whenever an employee is directed to work on a fixed holiday which falls on a regular day off, the employee shall accrue on an hour-for-hour basis up to a total of eight (8) hours of holiday compensatory time irrespective of employee's normal work schedule. K. Employees on leave without pay the last scheduled workday before and the first scheduled workday after a fixed holiday shall not receive holiday pay. L. Holiday time may be accrued up to a maximum of forty (40) hours. When the employee reaches the forty (40) hour maximum, additional holiday time worked shall be compensated in cash at straight time rates. Upon termination or retirement, employees shall be compensated for any unused accrued holiday time at the then current regular hourly rate of pay. Effective Date: 7/24/07 12 MCMAMOU

73 M. Employees may request cash-out of up to forty (40) hours of their grandfathered holiday time annually, during the pay period in which November 1, falls. This cash-out is at the employee's current regular hourly rate of pay. N. Holidays for 4/11 and Modified 4/10 Schedules: The first payperiod of January of each year, employees assigned to the 4/11 or modified 4/10 schedule shall be credited with eighty-eight (88) hours of accrued holiday time. Holiday leave shall be reduced by eighty-eight (88) as required by the modified 4/10 schedule, for a net of zero (0) hours, or reduced by twenty (20) hours as required by the 4/11 schedule, for a net of sixtyeight (68) hours. See Exhibit 3. Employees assigned to the 4/11 or modified 4/10 schedule are not entitled to any additional compensation when the holiday falls on their regular workday. For employees on a 4/11 schedule, the remaining sixty-eight (68) hours of holiday time in the employee's regular holiday account shall be taken as time off, or shall be forfeited at the end of each calendar year. (The end of the calendar year is defined as the pay period in which January 1 falls). If an employee enters into or leaves a 4/11 or modified 4/10 schedule, the employee's holiday hours shall be adjusted to reflect the schedule change. ARTICLE 21. SICK LEAVE A. Definition. Sick leave with pay is an insurance program provided by the CITY for employees in regular positions to be granted in circumstances of adversity to promote the health of the individual employee. Sick leave is defined to mean the authorized absence from duty of an employee because of physical or mental illness, injury, pregnancy, confirmed exposure to a serious contagious disease or for a medical, optical, or dental appointment. Sick leave shall not be used for any injury arising out of or incurred in connection with outside employment. In compliance with California law, a maximum of one-half of an employee's annual calendar year sick leave accrual (forty-eight (48) hours) may be used to care for or obtain care for an employee's child, including stepchildren and foster children, parent, spouse, registered domestic partner or child of a registered domestic partner who is ill. A maximum of twenty-four (24) hours accrued sick leave may be used to care for or obtain care for members of the employee's immediate family who require the attention of the employee. For purposes of this provision, immediate family includes a sister, brother, mother-in-law, father-in-law, grandparent, and foster parent of the employee who is ill. B. Accumulation. Employees shall accrue sick leave for each payroll period completed, prorated on the basis of ninety-six (96) hours per year at the rate of three hours and fortytwo minutes (3:42) per pay period. Sick leave shall be available for use on the first day following the pay period in which it is eamed, provided the employee has completed four hundred eighty hours (480) of service from the employee's hire date. Employees in regular positions budgeted less than eighty (80) hours per pay period or job-shared positions shall receive sick leave accumulation on a pro-rata basis. Sick leave shall be accumulative up to a maximum of two thousand two hundred (2,200) hours. Sick leave shall not accrue when an employee is absent for more than forty (40) hours in any pay Effective Date: 7/24/07 13 MCMAMOU

74 period while on any leave other than holiday, vacation, management/confidential, CTO, bereavement, jury duty, paid administrative or temporary military leave. C. Compensation. Sick leave shall be compensated at the employee's regular hourly rate of pay. When an employee is transferred from one department to another, the transfer shall have no effect on the employee's sick leave accruals. D. Administration. 1. Validation. It shall be the responsibility and duty of each Department Director to validate each request for sick leave and to allow sick leave with pay where the application is determined to be proper and fitting. 2. Notice of Sickness. In twenty-four (24) hour departments, the Department Director or designee must be notified at least two (2) hours prior to the start of the employee's scheduled tour of duty of a sickness on the first day of absence. In other departments, the Department Director or designee must be notified not later than the start of the employee's scheduled tour of duty of a sickness on the first day of absence. It is the responsibility of the employee to keep the Department Director or designee informed as to continued absence beyond the first day for reasons due to sickness or occupational disability. Failure to make such notification may result in denial of sick leave with pay. 3. Review. The Personnel Director may review and determine the justification of any request for sick leave with pay and may, in the interest of the CITY, require a medical verification by a doctor to support a claim for sick leave pay. 4. Proof. A doctor's certificate or other adequate proof shall be provided by the employee in all cases of absence due to illness prospectively when requested by the Department Director. 5. Improper Use. Evidence substantiating the use of sick leave for willful injury, gross negligence, intemperance, trivial indisposition, instances of misrepresentation, or violation of the rules defined herein may result in denial of sick leave with payor disciplinary action. E. Coordination of Benefits. Employees shall be entitled to coordinate fully their sick leave benefits with their Workers' Compensation benefits. F. Sick Leave Cash-out. Employees who leave CITY employment in good standing after five (5) years of continuous service (other than retirement), shall be paid at time of termination for twenty-five (25%) percent of the first twenty-two hundred (2,200) hours at the employee's then current regular rate of pay. G. Retirement. 1. Employees who retire after five (5) years of service in good standing may, on a one-time basis, exercise the option to have ninety percent (90%) of their unused Effective Date: 7/24/07 14 MCMAMOU

75 sick leave, up to twenty-two hundred (2,200) hours, applied by the CITY upon retirement to premiums for health, dental and vision insurance plans covered by the CITY. Said insurance shall be provided in an amount up to that contributed to active employees, as needed to cover the cost of retiree health, dental and vision premiums at the rate of one (1) month of premium contributions for each eight (8) hours of sick leave, except as noted in paragraph (4) below. 2. The CITY's contribution to retired employees shall be defined as that amount contributed to active employees on the median priced health plan, excluding unionsponsored plans or PPO's. In the event of death of the retired employee, the employee's spouse, registered domestic partner or dependents shall remain eligible to receive this benefit. 3. If, after the ninety percent (90%) conversion, a retiring employee has less than twelve hundred forty-five (1,245) hours, the employee may elect to convert some, or all, of the employee's accrued vacation leave to the sick leave account, provided that the total number of hours of sick leave and vacation does not exceed twelve hundred forty-five (1,245) hours. Any such vacation hours shall be converted at ninety (90%) percent, on the same basis as sick leave. 4. At the time a retiree initially moves or during any open enrollment period or IRSapproved life change situation, a retiree who lives out of the HMO service area, or out of state, may elect to use multiple monthly increments (up to a maximum of three (3) months) of their accumulated sick leave conversion benefits to offset higher health insurance premiums for plans sponsored by the CITY. During any subsequent open enrollment, the retiree may reduce the number of multiple increments. Retirees electing this option will be required to sign an acknowledgement form that indicates they understand that they will be using their benefit proportionately. ARTICLE 22. CATASTROPHIC LEAVE A. Employees in regular positions shall be eligible to participate in the strictly voluntary catastrophic leave program. To be eligible, an employee must provide written medical verification of a long-term illness or injury, or have a member of the employee's immediate family, including a domestic partner, with a long term illness or injury which results in the employee being requested to take time off from work to care for that family member. The employee must have exhausted all accrued leave and CTO, or soon will have exhausted all such leave, resulting in the employee being in a no-pay status. Employees who are receiving long-term disability benefits are not eligible for catastrophic leave. Catastrophic leave shall be coordinated with Family Leave with respect to CITY payment of insurance contributions. See ARTICLE 31. F. (HEALTH, DENTAL, VISION INSURANCE) for coordination of Catastrophic Leave with Workers' Compensation. B. When a Department Director has determined that an employee would benefit from the establishment of a leave bank and has approved an employee's request for catastrophic leave bank, the Department Director will notify the Personnel Department requesting the establishment of a leave bank in the employee's name. The Department Director will be Effective Date: MCMAMOU

76 responsible for notifying CITY employees of the need for donations. The Department Director will take necessary actions to help ensure that individual employee decisions to donate or not donate to a leave bank are kept confidential and that employees are not pressured to participate. ALL DONATIONS SHALL REMAIN CONFIDENTIAL. C. The maximum time that may be initially donated into an employee's leave bank account is 1,040 hours. To be eligible to receive more than the original 1,040-hour limit, there must be a favorable prognosis for recovery and a predictable date of retum to work. D. An employee may donate vacation, holiday, management/confidential and up to forty (40) hours of sick leave in increments of four (4) hours to a specific employee for which a leave bank has been created. Employees may donate leave only if their own total accrued leave balance(s) remains in excess of 168 hours. Employees must advise Personnel Department of the maximum hours they wish to donate. Donated hours shall be credited to the leave bank of the affected employee as sick leave upon an "as needed basis." Once the authorized hours are credited to the leave bank of the affected employee, the donation of leave hours is irreversible. When employees are utilizing leave bank hours, they will not accrue any leave time. E. Employees wishing to donate time shall complete and submit the required form to the Personnel Department. After review, the form will be forwarded to the Finance Department for payroll action and adjustment to donor and recipient's paid leave balance. F. In no event shall donated time have the effect of altering the employment rights of the CITY or the recipient employee, nor shall it extend or alter the limitations otherwise applicable to leaves of absence or sick leave. The CITY reserves the right to modify or terminate an established leave bank for participating employees as it deems necessary. ARTICLE 23. BEREAVEMENT LEAVE A. Employees in regular positions shall be entitled to three (3) days of paid leave regardless of work schedule which may be used per occurrence for bereavement due to the death of persons in the immediate family defined as a spouse, son, daughter, mother, father, sister, brother, mother-in-law, father-in-law, grandparent, grandchild, stepson, stepdaughter, stepparent or former guardian of the employee, person over which the employee has legal guardianship, child of a registered domestic partner, foster child, and foster parent of the employee, registered domestic partner or any relative living with the employee. B. In addition, a maximum of two (2) days of accrued sick leave regardless of work schedule may be used per occurrence for bereavement due to the death of persons in the immediate family, or any relative living with the employee. Under extraordinary circumstances, additional time may be granted by the City Manager. In the case of disagreement between an employee and the Department Director over use of bereavement leave or additional days under sick leave, the employee may request an immediate review by the City Manager. Effective Date: 7/24/07 16 MCMAMOU

77 ARTICLE 24. LEAVES OF ABSENCE A. Authorized Leave of Absence. An authorized leave of absence without pay with right to return to classification for a period of not rnore than one (1) year may be granted to an employee who is: 1. Medically incapacitated (including pregnancy) to perform the duties of the position; Prior to such approval, an employee must provide written medical verification of a long-term disability, illness or injury to the Department Director or designee. The above is notwithstanding: Provisions of the California Government Code, (Section 21153) which states, in pertinent part: "... an employer may not separate a member because of disability a member is otherwise eligible to retire for disability but shall apply for disability retirement of any member believed to be disabled, unless the member waives the right to retire for disability and elects to withdraw contributions or to permit contributions to remain with rights to service retirement... " CalPERS regulations, which provide that as soon as it is believed the member is unable to perform the job because of an illness or injury which is expected to be permanent or last longer than six months, the member or someone on the member's behalf, should submit an application for disability retirement. The medical condition does not have to be 'permanent and stationary.' 2. Desires to engage in a relevant course of study that will enhance the employee's value to the CITY; 3. For any reason considered appropriate by the Department Director and the Personnel Director. A request for such leave must be in writing. Leave requests under Section (1) require the approval of the Department Director. Leave requests under Section (2) and (3) that are up to three months in duration require the approval of the Department Director and the Personnel Director. Leave requests under Section (2) and (3) that are over three months in duration require the approval of the Department Director, the Personnel Director and the City Manager. An employee does not have to exhaust accumulated paid leave prior to requesting a leave of absence without pay. Except as otherwise provided in ARTICLE 31 (HEALTH, DENTAL & VISION INSURANCE), when an employee is on a leave of absence without pay with right to return to their classification, the employee shall accrue no employee benefits and shall pay the full premium of their health and welfare program on a prorated basis, if coverage is continued by the employee. If health and welfare coverage is dropped during a leave of absence, the employee may be subject to restrictions imposed by the insurance carrier upon return. After a leave of absence with or without right to return of Effective Date: 7/24/07 17 MCMAMOU

78 six (6) months or more, a qualifying medical examination, paid by the CITY, may be necessary prior to reinstatement. B. Militarv Leave. Any employee who is granted a military leave of absence to serve in the Armed Forces of the United States shall have his/her seniority as far as salary steps are concerned continued as if the person had remained on the CITY payroll. The person shall be reinstated from the military leave of absence at the same step in the same salary range that he/she would have been eligible to receive had he/she not been granted the military leave of absence. Military leaves of absence will be governed by the provisions of the Military and Veterans Code of the State of California, Section 389 et seq and the Uniformed Services Employment & Reemployment Rights Act of 1994 (38 USC), Sections 4301 et seq. C. Jurv Duty Leave. Any employee who is summoned for attendance to any court for jury duty on a regularly scheduled work day, shall be deemed to be on duty and there shall be no loss of salary but any jury fees received by him/her shall be paid into the CITY treasury. (An individual who agrees to serve on a civil grand jury, is generally not summoned to do so.) Regular paid time, however, shall not be granted for time spent in court on jury duty on the employee's regular day off or in court on personal cases in which the employee is an interested party and the case is not connected with their CITY duties. Any non-exempt employee who is served with a subpoena to appear as a witness in a civil case in which the CITY is a party or as a witness for the CITY in a criminal matter shall be deemed to be on duty, even if the appearance falls on a non-duty day. Any witness fees received by the employee while on a paid status shall be paid into the CITY treasury. D. Compulsorv Leave. If in the opinion of the Department Director, an employee is unable to perform the duties of his/her position for physical or psychological reasons, the Department Director shall refer that employee to the Risk Manager. The Risk Manager shall have the authority to require the employee to be examined by a physician or other competent authority at CITY expense to determine the employee's fitness for duty. The employee may go to a physician or other competent authority of his/her own choosing other than his/her treating physician or specialist or someone in practice with the treating physician, (subject to the approval of the Risk Manager based upon a determination of the practitioner's practice or specialty) at the employee's expense. The employee shall have four (4) calendar days to arrange for said examination and to provide the Risk Manager written documentation from the employee's practitioner stating the date and time of the appointment. If the examination report finds the employee to be in an unfit condition to perform the duties required of the position, the Department Director shall have the right to compel the employee to take sufficient leave of absence. If found unfit, the CITY may require the practitioner to provide the CITY with an anticipated date (or dates) of reevaluation(s). The employee must provide the CITY with a signed waiver providing the Risk Manager (and the CITY's physician if a personal physician is chosen) Effective Date: MCMAMOU

79 authorization to receive certification from the physician as to the employee's fitness for duty. The re-evaluation will be performed at CITY expense. If the examination report finds the employee to be fit for duty, the employee shall return to work without loss of payor benefits. A temporarily disabled employee may be offered modified duty in his/her department or another. Modified duty shall be predicated upon the following: 1. There is work to be performed. 2. The work can be performed in an efficient and effective manner. 3. The work can be performed within the restrictions placed upon the employee. E. Paid Administrative Leave. The Department Director may order an employee off work without reduction in compensation. F. Unpaid Administrative Leave. If an employee tests positive for a controlled substance (absent a valid prescription) or for alcohol subsequent to a Reasonable Suspicion Drug or Alcohol test, the Department Director may require the employee to use accrued leave time or unpaid Administrative Leave until such time as the employee tests negative. The "return to work" drug or alcohol test(s) will be performed at the employee's expense. G. Family Leave. The CITY is in compliance with both State and Federal Laws providing for employee leaves for family and medical care as regulated by the State Fair Employment and Housing Commission and the Federal Department of Labor. H. Pregnancy Disability Leave. A pregnant employee shall furnish the Department Director, no later than the fourth month of pregnancy, a statement of the attending physician that indicates the estimated time of delivery. A pregnant employee is entitled to take a pregnancy disability leave for the portion of the pregnancy and the time following delivery during which the doctor determines she is disabled (not to exceed four months). Prior to that time, the employee shall contact the Personnel Department to complete the necessary documents. Such an employee may elect to take accrued leave time or leave without pay during the period of her disability. Reinstatement subsequent to pregnancy disability leave of absence shall be to the same classification from which leave was taken. I. Unauthorized Leave of Absence. When an employee is absent without prior authorization, the time absent shall be recorded as Leave Without Pay. An employee on Leave Without Pay may lose related benefits. Effective Date: MCMAMOU

80 ARTICLE 25. JOB SHARING A. The CITY will make reasonable accommodation for an employee in a regular position who desires to share his/her job with another qualified employee or eligible person provided that the Department Director has made a determination that such a change will be beneficial to the organization. Jobs may be shared on an hourly or daily basis provided that the combined total scheduled hours do not exceed eighty (80) hours per pay period. An employee who works less than forty (40) hours per pay period shall be not eligible to receive any benefits for which the CITY pays an insurance premium or membership in the retirement system. Should both employees be scheduled for forty (40) hours each pay period, both employees shall assume responsibility for the payment of one-half (1/2) of the CITY's contribution towards insurance premiums, as well as their own, if any; provided, however, that one (1) employee may elect to waive coverage under the insurance program allowing the other employee to receive the full CITY contribution. All other benefits for job sharing employees shall be as provided in the appropriate Article on a pro-rated basis based upon a total eighty (80) hour pay period. B. Each employee shall be notified in writing by the Department Director at the time of appointment and such notification will clearly define the benefits to which each employee is entitled. Work schedules for job sharers shall be approved in advance by the Department Director with a minimum of one-week notice for scheduled changes. In the event that one employee terminates, cancels participation or is on leave of absence, the remaining employee shall assume the position on a full-time basis until a replacement is available. C. For non-exempt employees in a job share assignment, overtime shall only accrue for hours in excess of forty (40) hours in a work week. ARTICLE 26. LICENSE, CERTIFICATES, REGISTRATION A. Required Licenses, Certificates and Registration 1. Effective April 8, 2003, whenever an employee is required to obtain a certificate, license or registration in order to carry out the duties assigned, except a California Class C Driver's License, the CITY will pay the fee for the actual certificate, license or registration (and exam fee, if any) and, for non-exempt employees, the time required to obtain or renew it shall be considered as regular duty time. 2. The CITY shall allow non-exempt employees to attend training or continuing education courses necessary to maintain a certificate, required by the employee's current classification, and the CITY shall bear the cost of course material and tuition or registration fees. B. Voluntary Certifications [This section is subject to change with the implementation of the wall to wall classification study.] Effective Date: 7/24/07 20 MCMAMOU

81 1. Effective April 8, 2003, whenever an employee voluntarily obtains one of the following certifications, the initial fee for the actual certificate (and exam fee, if any) and the time required to obtain it, shall be at the employee's expense. Once the employee is certified and is receiving certification pay, the CITY will pay the fee for the actual certificate and exam fee, if any, (with a maximum of up to two tests per certificate or per renewal) and, for non-exempt employees, the time required to renew it. 2. Effective July 1, 2003, and as amended October 4, 2005, employees in the following classifications, divisions and assignments shall receive an additional two and one-half percent (2 %%) for possessing a Grade III certificate, five percent (5%) for possessing a Grade IV certificate, and seven and one-half percent (7 %%) for possessing a Grade V certificate as follows: Division Certificate Grade Eligible Classes Water Water Distribution Operator III, IV, V O&M Supervisor C) Operations Administrative Analyst 1111 Water Treatment O~erator III, IV, V Wastewater Collection System III, IV O&M Supervisor Collections Maintenance Technologist Mechanical Technologist III, IV Water Quality Collection System III, IV WQC Maintenance Supervisor Control Maintenance Technologist Mechanical Technologist IV Water Quality Environmental Compliance III, tv Industrial Waste Supervisor Control Ins~ector Water Quality Laboratory Analyst-CWEA IV Environmental Laboratory Control Su~ervisor All Divisions, Pest Control Advisor N/A Maximum of two (2) employees Citywide citywide with concurrence of De~artment Director (2%%) Parks Playground Safety N/A O&M Supervisor (2%%) Building & CA Registration N/A Chief Building Official (2%%) Dev. Services Professional Civil Engineer De~uty Cliief Building Official (5%) 3. Compensation for certificates that may be issued at more than one grade shall only be given for the highest grade obtained, and shall not be cumulative for each grade in the series. Cl Effective July 10, 2007, pending the implementation of the Wall-to-Wall Study, 0 & M Supervisors in Water Operations shall receive Supplemental Pay. This Supplemental Pay is in lieu of the 2%% - 7%% cert pay for possession of Grade III, IV or V Water Distribution Operator or Water Treatment Operator certificates. This Supplemental Pay will initially be the equivalent of the designated 2%% - 7%% cert pay, plus an additional 5%. Effective Date: MCMAMOU

82 4. The City shall, in accordance with the provisions of this article, compensate employees in the Wastewater Collections and Water Operations Division for "cross-over" certifications where there is a demonstrated benefit to the City. This decision is at the sole discretion of the Department Director. 5. The cumulative or maximum amount of compensation for the above certificates shall be seven and one-half (7 %%) percent. 6. Certification Pay (2 %% to 7 %%) shall be included in base pay for purposes of compensation for approved paid leave. ARTICLE 27. PAY DIFFERENTIALS A Bilingual Pay for Non-Exempt Employees. Each Department Director shall, on an annual basis, determine the number of bilingual employees that are needed for oral translation purposes within their department. For purposes of this Article, bilingual is defined as Spanish, Southeast Asian language(s) common to this area, sign language or other languages deemed desirable by the Department Director. Annually in January, each department will provide to their employees a list of translation opportunities within the department. Employee participation in this effort is voluntary. A review panel made up of three experts (as determined by the department) will assess the qualifications of employees wishing to volunteer. Two of the three panel members must agree that the person is capable of bilingual translation. Effective August 21, 2007, employees who pass the review panel and are needed in this capacity by the department shall receive fifty ($50.00) dollars per pay period. Employees must agree to use their bilingual skills at the direction of the department for a minimum of one year from the time the Bilingual Pay begins, unless an unusual hardship is presented by the employee. If the Department Director identifies more opportunities for translation than there are employees certified, the Department and Personnel may establish a second notification for volunteers and a second review panel in July of that year. An employee certified and receiving Bilingual Pay shall cease receiving the Bilingual Pay after they have been out of the workplace for three consecutive pay periods. The Bilingual Pay will not be granted beginning the first day of the following pay period. The Bilingual Pay will be resumed the first full pay period the employee returns to work. The Department Director may choose to eliminate the Bilingual Pay if it is determined that the translation services are not being effectively delivered by the employee and/or the need is no longer present in a specific division. If more employees are deemed to be capable of bilingual translation than the need for these services, the Department Director may choose to rotate this duty between eligible employees. Effective Date: 7/24/07 22 MCMAMOU

83 B. Educational Incentive. Effective June 29, 2004, employees who have completed one full year of service with the City, and who possess a Master's Degree or Juris Doctor from an accredited institution shall be eligible for one and one-half (1 112%) percent Educational Incentive Pay, subject to criteria established by the CITY. The maximum pay differential is one and one-half (1 112%) percent, regardless of the number of Degrees obtained. C. Shift Pay. All non-exempt employees and exempt employees in the following classifications whose regularly scheduled workday requires that they work four (4) hours or more in a shift, shall be paid shift differential at the following rates for shifts actually worked: Custodian Supervisor Police Civilian Supervisor 3:00 p.m. to 11 :00 p.m. shift - $5.00 per shift 11:00 p.m. to 7:00 a.m. shift - $7.00 per shift If a regular shift requires an employee to work more than four (4) hours in both "swing" shift and "graveyard" shift as noted above, the employee shall receive $7.00 total per shift. If the employee is required to work more than four hours in both shifts as a result of paid overtime, the employee shall receive $12.00 per shift. ARTICLE 28. DRESS, GROOMING AND UNIFORMS A. Dress and Grooming Employees shall be required, while working, to be clean and neat in appearance and be able to wear all safety equipment in an effective manner. Employees shall not wear or place any items on their person that would in any way impair safety on the job. B. Uniforms Employees in the following classifications shall wear CITY-provided uniforms, as designated below. Employees in the optional categories who elect a CITY-provided uniform, must wear the uniform. Uniform Shirts required and Uniform Pants optional: Operations and Maintenance Supervisor Custodial Supervisor Land Surveyor Uniform Shirts and Uniform Pants optional: Electrical Supervisor WOC Operations Supervisor WOC Maintenance Supervisor Effective Date: 7/24/07 23 MCMAMOU

84 Safety Shoes: Effective July 1, 2003, purchase is at the CITY's discretion, based on job assignment and related risk, and is handled on a reimbursement basis. Effective August 1, 2004, reimbursement shall not exceed one hundred and eighty dollars ($180) annually. Replacement shall occur on an as-needed basis as approved by the immediate supervisor. Safety-toed shoes must meet ANSI standards. C. Uniform Allowances - Police Department Employees in the classifications of Police Clerk II (Confidential) and Police Civilian Supervisor shall be required to wear a uniform and shall receive a uniform allowance of sixty-five dollars ($65) per month effective July 1, 2004, paid quarterly. For employees in the classifications of Administrative Office Assistant III (Confidential), Senior Administrative Office Assistant (Confidential) and Executive Secretary, the wearing of a uniform is optional. These employees shall only receive the uniform allowance, stated above, if they elect to wear a uniform. ARTICLE 29. VEHICLE ALLOWANCE Designated Management employees may be granted a vehicle allowance in amounts ranging from one hundred dollars ($100) to two hundred dollars ($200) per month by the City Manager, based on Department Director recommendation and an annual justification relating to extensive use of a personal vehicle while conducting CITY business. ARTICLE 30. DEFERRED COMPENSATION A. The CITY shall continue to provide access to a deferred compensation program authorized by the City Council for the voluntary participation of City employees. In addition, the CITY shall match on behalf of a participating employee in a regular position, one and one-half percent (1.5%) of an employee's regular rate of pay on a biweekly basis; provided, the employee is contributing at least one and one-half percent (1.5%). For such employees who have been continuously employed by the CITY for nine (9) or more years, the CITY shall contribute two and one-half percent (2.5%); provided the employee is contributing at least two and one-half percent (2.5%). Effective October 4, 2005, this increase in the City's contribution shall be effective with the first payperiod to begin in the month following completion of nine (9) years of service, provided that the employee has completed any required documents. B. At the time of retirement or separation, employees may defer some, or all, of their final pay and leave cashout entitlements. The amount placed into the employee's deferred compensation account may not exceed the then maximum IRS annual deferral. Deferrals must meet all applicable IRS regulations. Employees contemplating such deferral must contact the City's Employee Benefits Coordinator to sign the appropriate documents at least thirty (30) calendar days before the month in which they plan to retire. Effective Date: 7/24/07 24 MCMAMOU

85 ARTICLE 31. HEALTH, DENTAL, VISION INSURANCE A. All employees in regular positions budgeted for forty (40) hours or more per pay period shall be eligible to participate in the health, dental and vision programs authorized by the CITY. The CITY agrees to make available the health, dental and vision benefits currently provided for employees represented by MCMA or any other program(s) mutually agreed upon by the parties. B. Employees may opt out of participation in any health plan, but shall continue to participate in the CITY dental and vision plans. This option may only be exercised during the CITY's open enrollment period or in coordination with spouse/registered domestic partner's open enrollment period and requires that the employee show proof of alternate health coverage. The Chiropractic and Psychological Services plans are not available under the Opt-out option. No cash payments will be made in-lieu of health coverage, but deferred compensation contributions will be provided as designated below. C. For new employees, eligibility for health, dental and vision insurance benefits shall start with the beginning of the payroll period following completion of two (2) full pay periods. D. The CITY shall contribute the following amounts bi-weekly (based on 24 pay periods) toward the combined total premium for health, dental and vision insurance plans; the employee is responsible for the balance of the premium cost, if any. 1. $445 bi-weekly ($890 monthly) for employees with dependent coverage, effective July 24, The CITY's contribution for employees with dependent coverage shall not exceed the actual premium amount for the lowest cost HMO (including dental and vision) offered by the CITY, regardless of the health plan selected by the employee or the contribution amounts listed above. 2. $ bi-weekly ($495 monthly) for employees without dependent coverage, including the CITY's contribution to in-lieu deferred compensation, effective July 24, 2007, except that the contribution shall not be less than the combined premium for the lowest cost HMO, Dental and Vision plan. The CITY shall deposit to the employee's deferred compensation account any balance of the above contributions not needed to pay for the combined total premiums. 3. $200 bi-weekly ($400 monthly) for employees who opt out of health coverage, including the CITY's contribution to deferred compensation. The CITY shall deposit to the employee's deferred compensation account any balance of the above contributions not needed to pay for the combined dental and vision premiums. Effective Date: 7/24/07 25 MCMAMOU

86 E. Employees in regular positions budgeted less than eighty (80) hours per pay period or in job shared positions, shall receive premium contributions on a pro-rated basis. F. Except as otherwise required by law or this MOU, employees on leave without pay in excess of forty (40) hours in a pay period shall not receive a contribution from the CITY towards premium payment and coverage shall cease, unless the premium is paid by the employee. Employees on leave without pay who retum to work shall have their health, dental and vision insurance benefits reinstated on the first day of the pay period following the employee's return to work. Article 22 of this MOU permits employees on Workers' Compensation who have exhausted their accrued leave to apply for and receive Catastrophic Leave donations. Employees who apply for and receive Catastrophic Leave donations in accordance with Article 22 will receive the contribution from the City towards premium payment if they use sufficient Catastrophic Leave that the combination of worker's compensation benefits plus Catastrophic Leave equals a full check. Such employees are limited to using the amount of Catastrophic Leave necessary to maintain the City's contribution toward premium payment. G. The CITY shall continue an IRS Section 125 program for pre-tax deductions for the employee share of health, dental and vision insurance premiums and for dependent care costs. H. The CITY agrees to provide the benefits described in this Article subject to carrier requirements. Selection of the insurance provider(s) shall be within the sole discretion of the CITY. ARTICLE 32. RETIREE HEALTH INSURANCE A. Employees may elect on a one-time basis at retirement to purchase health, dental and/or vision insurance under a CITY-authorized plan. Upon the death of a retired employee enrolled in one of the plans, surviving dependents retain eligibility for participation in the plans. B. The CITY's monthly contribution rate towards health, dental and vision insurance for those retirees participating in the sick leave conversion program shall be up to the following amounts, as needed to cover the cost of the premiums: 1. $890 for retirees with dependent coverage, effective August 1, The CITY's contribution for retirees with dependent coverage shall not exceed the actual premium amount for the lowest cost HMO for active employees (including dental and vision) offered by the CITY, regardless of the health plan selected by the retiree or the contribution amounts listed above. 2. $ for retirees without dependent coverage, effective August 1,2007. This contribution rate is subject to changes in the median-priced health plan for active employees, excluding union sponsored plans or PPO's. Effective Date: 7/24/07 26 MCMAMOU

87 This contribution rate is subject to change August 1 of each year, pursuant to paragraph (G), ARTICLE 21 (SICK LEAVE), based on changes in premium rates for health, dental and/or vision insurance, provided that the contribution rate shall not exceed the following active employee rate: $495 effective July 24,2007. C. For retirees who do not elect to carry vision and/or dental insurance, the CITY's contribution shall be reduced proportionately. D. If a retiree's health premium in any given month is less than the designated CITY contribution, the excess contribution shall be applied on behalf of the retiree to that month's premiums for dental and/or vision insurance, if the retiree has elected these plans. ARTICLE 33. EMPLOYEE ASSISTANCE PLAN CITY shall provide employees and dependents professional assistance with financial, marital, psychological, family, alcohol or drug related problems. The assistance shall consist of assessment, counseling and referral services up to a maximum of three (3) visits each per year for employees and dependents. ARTICLE 34. LONG TERM DISABILITY INSURANCE The CITY shall provide, at CITY expense, all employees with long term disability (L TO) insurance. The purpose is to provide employees with an L TO benefit while the employee is totally disabled equal to 66 2/3% of the first $12,000 per month in earnings, reduced by any income received from other sources. The plan provides for a sixty (60) day waiting period, but if the disability lasts longer than ninety (90) days, the disability payments will be retroactive to the 31 st day. The L TO program will include the Managed Disability contract. Essentially, this contract provides that LTD benefit dollars will be offset by any workers' compensation income, mandates rehabilitation and changes the definition of disability to a loss of at least 20% of income. ARTICLE 35. LIFE INSURANCE The CITY shall provide, at CITY expense, all employees with term life insurance coverage in the amount of $120,000. Employees shall have the option to buy additional coverage at their own expense. If possible, the CITY will continue to make available insurance plans which will enable the employee to convert the City-provided policy to an individual policy upon retirement, at the retiree's expense. ARTICLE 36. RETIREMENT A. The CITY shall contract with the Public Employees' Retirement System to provide for the following retirement benefits (all references to Sections are from the Government Code): Effective Date: 7/24/07 27 MCMAMOU

88 1. 55 Full Formula as provided in Section Level III of 1959 Survivor Benefits as provided in Section One-Year Final Compensation as provided in Section Post-Retirement Survivor Allowance as provided in Sections 21624, and if hired on or prior to October 20, For those hired after October 20, 1981, this benefit does not apply. 5. Benefits Payable to Surviving Spouse as provided in Section (Mandated Benefit). 6. Surviving Spouse-Remarriage as provided in Section (Mandated Benefit). 7. Military Service Credit as Public Service as provided in Section Improved ~on-industrial Disability Allowance as provided in Section B. Pursuant to the provisions of Section 20615, the CITY shall pay six and six tenths (6.6%) percent of the seven (7%) percent employee contribution in the employee's name to the Public Employees' Retirement System. The employee shall pay the remaining four-tenths (0.4%) percent. Such payments shall be implemented pursuant to the provisions of Section 20023(c)(4), and Internal Revenue Code 414 (h) (2) providing for pre-tax employee contributions. ARTICLE 37. EDUCATIONAL AND TRAINING ALLOWANCES A Educational Partnership Program: Non-probationary employees with at least one year of service may be eligible to receive financial support toward the attainment of an Associate, Bachelor's or Master's Degree from an accredited college or university. Program criteria and funding are at the discretion of the CITY, and subject to change annually. Program information is available from the Personnel Department. B. Management Training Allowance: Employees with one or more years of service in a management classification may be eligible to receive a Management Training Allowance, subject to available funds and approval of the Personnel Director. Program criteria and funding are at the discretion of the CITY. ARTICLE 38. ANNUAL PHYSICAL EXAMINATION In conjunction with the City's Occupational Medical Program, employees may avail themselves of an annual physical examination by the City's Occupational Medical Specialist at CITY expense. Employees may utilize their own physician and seek reimbursement for out of pocket expenses not to exceed the CITY's cost for comparable services. ARTICLE 39. OUTSIDE EMPLOYMENT A. All employees shall request the approval of the CITY prior to beginning any outside business or employment. Such business or employment shall not affect the time or quality of their CITY work or cast discredit upon or create embarrassment for the CITY. Effective Date: 7/24/07 28 MCMAMOU

89 B. Specific policies and procedures governing outside employment shall be as contained in the Personnel Rules and Personnel Administrative Orders. ARTICLE 40. LAYOFF AND DEMOTION PROCEDURES UPON REDUCTION IN FORCE A. When it becomes necessary through lack of work, lack of funds, or for other reasons to reduce the number of employees, the CITY shall prepare a lay-off list by classification within a department. Within each job class, employees shall be laid off in the following order: temporary, provisional, probationary, regular. The order of layoff shall then be based on the CITY's needs, with particular regard for length of service with the CITY and performance evaluation reports. B. Whenever there is a reduction in work force, the CITY shall first demote to a vacancy, if any, in the next lower class for which the employee who is scheduled for layoff meets the minimum employment standards. Employees with the least continuous service and lowest performance evaluations shall be demoted first. All persons so demoted shall have their names placed on the classification reinstatement eligible list. C. If there are no vacant positions in a lower class available, the CITY shall allow bumping from a higher to a lower classification within a department. An employee may bump into the next lowest class for which the minimum employment standards are met and the employee has greater overall CITY service, adjusted by performance evaluations as provided in paragraph (f) below. There shall be no lateral bumping. The sequence of bumping shall follow customary promotional progressions, except that an employee may bump down to a classification s/he previously held within the same department. When there is more than one possible lower classification for bumping consideration, the Department Director shall determine the appropriate classification based on the needs of the CITY. D. If there are no vacant positions or bumping possibilities, the CITY shall lay off employees within a department and classification. Employees with the least continuous service and lowest performance evaluations shall be laid off first. All persons laid off shall have their names placed on the classification reinstatement eligible list. E. To determine the length of continuous service, all uninterrupted employment, including periods of authorized leaves of absence which require a retirement contribution, and including all periods as a full-time CETA and PEP employee, shall be counted. F. To determine the level of performance evaluation, the most recent two annual or probationary evaluations shall be used. Each rating of "does not meet expectations" shall reduce the employee's continuous years of service by two (2) years. Each rating of "meets expectations" shall reduce the employee's continuous years of service by one (1) year. G. An employee scheduled for demotion or layoff shall be given a minimum of fourteen (14) calendar days notice in writing. The notice shall state the effective date and time of demotion or layoff. Effective Date: 7/24/07 29 MCMAMOU

90 H. Names shall be placed on classification reinstatement eligible lists in the inverse order of layoff as defined in paragraph (a). Vacant positions within a classification shall first be offered to those on the reinstatement list who meet the minimum employment standards for the vacant position. The eligibility of individuals on the reinstatement list shall be for a period of two (2) years from the date of demotion or layoff. Eligibles not responding to written notification of an opening within fourteen (14) calendar days shall have their names removed from the list. I. A reinstated employee shall be entitled to the following benefits. 1. Prior sick leave accrual (unless sick leave was cashed out in accordance with the applicable rules). 2. Seniority at time of layoff or demotion for purposes of determining merit increases, vacation accruals and future reductions in the work force. 3. A salary as nearly as possible equivalent to that which the employee was receiving immediately prior to layoff or demotion. If the employee chooses to be reinstated in a class at a lower salary range than that held previously, the salary will be either equivalent to the salary immediately prior to layoff or demotion or as close to the equivalent as the new salary range allows. J. A person appointed from a reinstatement eligible list within six (6) months to the same position held prior to layoff or demotion, will obtain permanent status upon reinstatement. All other persons appointed from a reinstatement list shall serve a new probationary period. K. Employees laid off shall be paid for all accrued vacation, holidays, ManagemenU Confidential Leave, and overtime, Accrued sick leave shall either be paid as provided for by the applicable rules, or may remain on the books in the event of reinstatement. If reinstatement does not occur within two (2) years, sick leave shall be paid in accordance with the applicable rules at the employee's hourly rate of pay at the time of layoff. L. The employee may elect to either withdraw their share of the retirement contribution or leave the money in the retirement system. M. Layoffs and demotions shall not violate the Non-Discrimination Article of this MOU. N. Whenever any provision of this Article conflicts with any other Article of this MOU or any Personnel Rules or Personnel Administrative Orders, the provisions of this Article shall prevail. Effective Date: 7/24/07 30 MCMAMOU

91 ARTICLE 41. GRIEVANCE PROCEDURE A. Purpose: It is the purpose of this procedure to provide a simplified and definite method for employees represented by MCMA to resolve grievances they may have in their employment relationships with the CITY. The overall policy of this procedure is to provide for the resolution of grievances at the lowest level within the employment hierarchy of the CITY as is possible without unnecessarily disrupting CITY functions or services. The use of this procedure in resolving grievances shall not be held against any employee in any manner since the adoption of this procedure gives each employee the right to use it. B. Definition of Grievance: A grievance is a disagreement between the CITY and an employee, group of employees, or MCMA conceming the interpretation, application, or violation of a specific Article(s) of this MOU or established written rule(s) or regulation(s), or custom(s) goveming personnel practices. C. Association Grievance: An Association grievance is a grievance as defined above which the Association files on its own behalf or on behalf of two (2) or more represented employees. An Association grievance shall be filed with the appropriate Department Director at the Third Step if all effected members are assigned within the same department. All other Association grievances shall be filed with the Personnel Director and shall be considered there as a Third Step grievance. D. Time Limitations and Notification: Time limits are established to settle a grievance quickly. Time limits may be modified only by agreement of the parties. If at any step of this Grievance Procedure, the grievant is dissatisfied with the decision rendered or a decision has not been filed in a timely manner, it shall be the grievant's responsibility to initiate the action which submits the grievance to the next level of review within the time limits specified. Failure to submit the grievance within the time limits imposed shall terminate the grievance process and the matter shall be considered resolved. A formal grievance may be entertained or advanced to any step if the parties jointly so agree, provided that only MCMA may initiate submission of the grievance to a hearing officer in the Fourth Step of this procedure. For purposes of this procedure, notification to a party may be given personally, telephonically, or by mail. When notice is mailed to an employee, it shall be sent to the employee's current address of record. Notice by mail shall be deemed to have been completed on the fifth calendar day following deposit of notice with the United States Postal Service. E. Jurisdiction: The Personnel Director shall have the sole authority within the CITY to provide the official CITY interpretation or application to any and all provisions of this MOU. The Personnel Director, or designee, may represent the department during any step of this procedure. Unit employees may use this procedure, regardless of membership in any employee organization. The decision to use this procedure and any step thereof is solely that of the employee. In using this procedure, however, any employee may choose to be represented by another, including the representative of an employee organization. Effective Date: 7/24/07 31 MCMAMOU

92 F. Use of City Time: Reasonable City time, subject to the discretion of the Department Director, may be used in the preparation of a written or oral grievance. City time may be used for the procedure set forth below. G. Steps in the Grievance Procedure: No complaint shall be considered a grievance unless it is presented within twenty (20) calendar days after the employee is aware or should have been aware of the conditions precipitating the grievance. Under normal circumstances, no grievance will be processed if the events in the grievance are based on events ninety (90) calendar days or more old as of the written submission. First Step: Any employee or group of employees having a grievance shall first discuss the grievance on a personal face-to-face basis with grievant's immediate supervisor, except as noted in section (c) above. This step shall not require a written grievance, however, the employee(s) must advise the supervisor that the First Step of the Grievance Procedure is being initiated. Within ten (10) calendar days immediate supervisor shall render a decision. If the grievant is not satisfied with the decision, the grievant may submit the grievance to the next step not later than ten (10) calendar days thereafter. Second Step: If a mutually acceptable solution has not been reached at the First Step, the grievant shall submit the grievance in writing to the supervisor of the employee's immediate supervisor, who may be the Department Director. If the Department Director is the immediate supervisor or the reviewing supervisor at either the First Step or Second Step, the grievance must meet the requirements of the First and Second Steps, but shall be considered to be at the Third Step. The written grievance shall provide a detailed statement of the grievance, including dates, names and places, applicable MOU or MOU Article(s) or personnel practices, and the specific remedy requested. Within ten (10) calendar days the reviewing supervisor shall meet with the grievant and within ten (10) calendar days thereafter render a decision. If the grievant is not satisfied with the decision, the grievant may submit the grievance to the next step not later than ten (10) calendar days thereafter. When a written grievance is submitted at the Second Step, the reviewing supervisor shall, upon receipt, forward a copy of the grievance to the Personnel Director for review. Should the reviewing supervisor fail to forward a copy of the grievance to the Personnel Director, the grievant shall not be prejudiced. If the Personnel Director makes a determination that the grievance is a matter for which this Grievance Procedure is not appropriate, the grievant and the supervisor shall be notified in writing within ten (10) calendar days. Third Step: If a mutually acceptable solution has not been reached, the grievant shall submit the written grievance to the Department Director. The Department Director, or designee, shall utilize an "Interest Based" process in attempting to resolve the grievance, unless the parties mutually agree to waive the "Interest Based process. The Department Director, or designee, shall personally meet with the grievant as soon as is practicable, but not later than fourteen (14) calendar days from the presentation of the written grievance, to discuss the grievance and shall render a written decision to the grievant within fourteen (14) calendar days of such meeting. The Department Effective Date: 7/24/07 32 MCMAMOU

93 Director and the grievant may call any witnesses at such meeting in order to reach a decision. Any meeting may be continued by the Department Director if necessary to allow for a proper investigation. If the grievant is not satisfied with the written decision, the grievant may submit the grievance to the next step not later than thirty (30) calendar days thereafter. Fourth Step: If a mutually acceptable solution was not reached in the prior step, the grievant may submit the written grievance to the Personnel Director, within the thirty (30) calendar days specified above. The Personnel Director shall forward the grievance to the City Manager. As an altemative to submitting the grievance to the City Manager, only MCMA can specify that the grievance be submitted to a hearing officer within the same thirty (30) calendar days specified above. If a hearing is requested, the CITY shall request a list of five (5) hearing officers from the State Mediation and Conciliation Service. The CITY and MCMA shall altemately strike names from the list until only one name remains and the remaining name shall be that of the hearing officer. The cost of the hearing shall be shared equally by both parties. At the conclusion of the hearing, the hearing officer shall make recommendations to the City Manager. The decision of the City Manager shall be rendered within twenty (20) calendar days of receipt of the hearing officer's recommendations, or within twenty (20) calendar days of receipt of the grievance if no hearing before a hearing officer was requested. The decision of the City Manager shall be final and binding on all parties. ARTICLE 42. DISCIPLINARY ACTIONS A. The following shall constitute cause for disciplinary action, including dismissal, demotion, suspension and disciplinary probation. 1. Violation of the City Charter. 2. Violation of the Modesto Municipal Code. 3. Violation of the Personnel Rules or Personnel Administrative orders, excluding Personnel Administrative Order No Fraud in securing employment. 5. Incompetency. 6. Inefficiency. 7. Inexcusable neglect of duty. 8. Insubordination. 9. Dishonesty. 10. Theft. 11. Being under the influence of alcohol or controlled substances while on duty. 12. Inexcusable absence without leave, except as described in Personnel Administrative Order No Conviction of a felony or conviction of a misdemeanor involving moral turpitude. A plea or verdict of guilty, or conviction following a plea of nolo contendere, to a charge of a felony or any offense involving moral turpitude is deemed to be a conviction within the meaning of this section. 14. Discourteous treatment of the public or other employees. Effective Date: 7/24/07 33 MCMAMOU

94 15. Misuse of City property. 16. Violation of any established departmental rule, regulation, policy and/or manual. 17. Other failure of good behavior either during or outside of duty hours, which is of such a nature that it causes discredit to the City 18. Unlawful discrimination, including harassment, on the basis of race, color, national origin, ancestry, sex, marital status, religion, age, physical or mental disability or perceived disability, sexual orientation, or political affiliation or beliefs. 19. Substantial or credible threats of violence against any person including, but not limited to intimidation, harassment, and/or coercion made in the course of employment; or any action that is a violation of the CITY's Workplace Violence Policy. B. The CITY shall have the right to demote an employee whose ability to perform required duties falls below an acceptable standard or for disciplinary purposes. Upon request of an employee, and approval by the CITY as provided for in ARTICLE 6 (PERFORMANCE EVALUATION), demotion may be made to a vacant position as a substitution for lay-off as provided for in ARTICLE 40 (LAYOFF AND DEMOTION PROCEDURES UPON REDUCTION IN FORCE). Demotion for the purposes of lay-off shall not be subject to appeal. C. The CITY shall have the right to suspend an employee without pay at any time for cause. Suspension without pay shall not exceed ninety (90) calendar days in any fiscal year and shall be issued and served in accordance with the Fair Labor Standards Act. D. The CITY shall have the right to dismiss an employee at any time. A regular employee in. the classified service shall be entitled to receive a written statement of the reasons for dismissal. E. The CITY shall have the right to place an employee on disciplinary probation. Disciplinary probation retums a non-probationary employee to probationary status. Employees placed on disciplinary probation may be dismissed without just cause or right of appeal from such dismissal. Disciplinary probation may only be imposed by delivery of written notice to the employee, pursuant to the Modesto Municipal Code, stating that the employee has been placed on disciplinary probation and stating the reasons for such action. F. Employees may request an association or MCMA representative if the employee believes an investigatory interview could result in discipline as defined in subsection A. ARTICLE 43. DISCIPLINARY APPEALS A. Employees shall have the right to appeal any dismissal, suspension, disciplinary probation or demotion for disciplinary reasons. Said right of appeal shall not apply to reclassifications, lay-offs, demotions as a substitute for layoffs, changes in status for medical reasons, changes in status due to the employee's loss of a required license or certificate, step reductions or denial of a step increase, or any other actions taken for non-disciplinary reasons. For changes in status for medical reasons, and for step Effective Date: 7124/07 34 MCMAMOU

95 reductions, appeal shall be provided for through the process in ARTICLE 41 (GRIEVANCE PROCEDURE). B. An appeal must be filed in writing with the Director of Personnel within thirty (30) days following written notice to the employee of the discipline. C. Upon filing of an appeal, the CITY shall request a list of seven (7) hearing officers from the State Mediation and Conciliation Service. The CITY and employee shall alternately strike names from the list until only one name remains and the remaining name shall be that of the Hearing Officer. The parties shall toss a coin to determine who will strike first. As an alternative, the parties may jointly stipulate to the use of any person as a Hearing Officer, whether identified on the list or not. D. The Hearing Officer shall proceed in any manner which will, in the Hearing Officer's judgment, develop all the facts bearing upon the matter, and no informality on the Officer's part shall constitute just cause for criticism of findings and decisions. Upon completion of the hearing, the Hearing Officer shall furnish certified copies of findings and decisions to the persons concerned. The decision of the Hearing Officer shall be final and binding. E. The person selected as the Hearing Officer shall set a date for the start of the hearing after consultation with the parties. Failure of the employee to appear at a hearing (except for good cause) shall be deemed withdrawal of the appeal and the discipline being appealed shall stand and be final. F. Oral evidence at the hearing shall be taken only on oath or affirmation. G. Each party shall have these rights at the hearing: To be represented by Counsel; to call and examine witnesses; to introduce exhibits; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him or her to testify; to subpoena witnesses and relevant documentary evidence; and to rebut the evidence against him or her. Further, at the hearing the employee may be examined and may examine or cause any person to be examined under Section 776 of the Evidence Code. H. The hearing need not be conducted according to technical rules relating to evidence and witnesses, except as hereinafter provided. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely on in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of the evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege as set forth in the Evidence Code shall apply. Irrelevant and unduly repetitious evidence shall be excluded. Effective Date: 7/24/07 35 MCMAMOU

96 Evidence of specific instances of a complainants' sexual conduct with individuals other than the alleged perpetrator is presumed inadmissible absent an offer of proof establishing its relevance and reliability and that its probative value is not substantially outweighed by the probability that its admission will create substantial danger of undue prejudice or confuse the issue. For purpose of this paragraph, "complainant" means any person claiming to have been subjected to conduct which constitutes sexual harassment, sexual assault, or sexual battery. I. At the request of either of the parties, the CITY shall employ a competent court reporter to record the proceedings. J. If either party requests it, the Hearing Officer may exclude from the hearing room any witness not at the time under examination so that the witness may not hear the testimony of other witnesses, but a party to the proceedings may not be so excluded. Parties to the proceedings shall include the appellant and a management employee from appellant's department to be selected by the CITY, both of whom may attend the hearing even though they testify as witnesses. In addition, each side may designate other representatives to attend the hearing provided these representatives do not testify at the hearing. K. The Hearing Officer shall, after the matter is submitted, prepare and file findings and decisions. The decisions of the Hearing Officer shall be final and binding. The decisions shall be rendered as quickly as possible with due regard for the hardships that may result from undue delay. L. The cost of the Hearing Officer and court reporter shall be divided equally between the CITY and the employee. The Hearing Officer and court reporter shall separately bill the CITY and the appellant for one-half of the cost of their respective services. ARTICLE 44. TIME BANK A. Each employee covered by this MOU shall contribute up to one (1) hour of vacation time to create a pool of two hundred and fifty (250) hours to be used for MCMA business (other than meet and confer and meet and consult items, and routine administrative functions dealing with the CITY). At the beginning of each calendar year, the CITY shall deduct an equal amount of hours or portions thereof of vacation time from each employee covered by this MOU to bring the total remaining pool hours to the two hundred and fifty (250) hour maximum. B. Use of the time bank shall be accounted for and processed by the Finance Department using a specifically designated payroll code. Association members utilizing the time bank shall be responsible for reporting the time used on their payroll record. It is the responsibility of the employee using the time bank to obtain approval from the MCMA President or Vice-President. Effective Date: 7/24/07 36 MCMAMOU

97 ARTICLE 45. CREDIT ASSOCIATION DEDUCTIONS The CITY shall provide for employee payroll deductions for Modesto First or OE3 Credit Union obligations. ARTICLE 46. COMMUTER BUS PASSES The CITY will make available free Modesto Area Express (MAX) commuter bus passes for use by employees in commuting to and from work. ARTICLE 47. EMPLOYEE PARKING Employees whose work site is at Tenth Street Place shall be assigned, by the CITY, to free parking (non-transferable), during their work days, at the Ninth Street Garage, the Tenth Street Garage and/or at other designated parking locations within a two-block radius of Tenth Street Place. F.ailure to utilize this right may, after notification to the employee, result in the deactivation of their proximity card garage access or revocation of the parking pass issued to the employee. The employee may decline, in writing, their parking rights as provided in this Article. ARTICLE 48. NON DISCRIMINATION A The CITY and MCMA agree that the provisions of this MOU shall be applied without favor or discrimination based on race, color, ancestry, religion or creed, sex, national origin, marital status, age, physical or mental disability or perceived disability, medical condition, pregnancy-related condition, sexual orientation or political affiliation. They agree to recognize, respect and support the CITY's commitment to nondiscrimination in employment as set forth in the CITY's Equal Opportunity Plan and CITY's Policy Against Harassment and Discrimination. MCMA agrees to encourage its members to assist in the implementation of that program. B. MCMA agrees to and acknowledges its responsibility to fairly represent all employees in the bargaining unit without regard to race, color, ancestry, religion or creed, sex, national origin, marital status, age, physical or mental disability or perceived disability, medical condition, pregnancy-related condition, sexual orientation or political affiliation, job classification or employment status. C. Because the Americans With Disabilities Act (ADA) requires accommodations for individuals protected under the Act, and because these accommodations must be determined on an individual, case-by-case basis, the parties agree that the provisions of this MOU may require modification in order for the CITY to avoid discrimination under the Act. Effective Date: MCMAMOU

98 D. The MCMA recognizes that the CITY has the legal obligation to meet with the individual applicant/employee to be accommodated before any adjustment is made in working conditions. The MCMA will be allowed to meet and consult with the CITY conceming the proposed accommodations prior to implementation by the CITY. E. Any accommodation provided to an individual protected by the ADA shall not establish a past practice, nor shall it be cited or used as evidence of a past practice in the grievance procedure. ARTICLE 49. PENDING ISSUE The parties agree during the term of this MOU to meet and confer regarding the following issues. A. Succession Planning: The City intends to develop a succession planning program. The City and MCMA agree to meet and confer on the impacts of the implementation of a succession planning program, including but not limited to cross-training, acting assignments and intern programs. B. Personnel Rules: The City anticipates rewriting the City's Personnel Rules. The City and MCMA agree to meet and confer on any changes to the Personnel Rules that impact wages, hours or terms and conditions of employment. C. Labor Market Salary Survey: The parties agree to meet and confer on labor market agencies to be utilized in the survey. The market survey is anticipated to commence no later than October 15, 2007, or sooner if a consultant can be secured, approved by Council and consultant is available to begin. The final market data is anticipated to be available for negotiations purposes by March 24, 2008 (90 days prior to expiration of this MOU). The parties agree to expeditiously begin negotiations once final market data is available, preferably prior to March 24, D. Retiree Health: The parties agree to continue the evaluation of an alternative Retiree Health Program Structure (RHPS). Should the parties identify an acceptable alternative retiree health program structure, negotiations shall commence on implementation of the selected retiree health program structure. Negotiations shall include the opportunity to discuss an extended multi-year contract. Both parties acknowledge that the Association will link enhanced PERS retirement formula on the basis of savings that rnay result from a new retiree health program structure. The parties desire to. identify an acceptable alternative to the retiree health program structure by December 1, ARTICLE 50. JOB ACTIONS MCMA agrees and acknowledges that strikes, sick-ins, slow-downs or other forms of work stoppage or disturbances are detrimental to the responsibility of MCMA and its members to insure that high quality service is provided to the people of the City of Modesto. MCMA Effective Date: 7/24/07 38 MCMAMOU

99 and its members agree not to sanction, support, condone, or engage in any such actions directly or indirectly during the term of this MOU. ARTICLE 51. SEVERABILITY A. If any provision of this MOU is declared by legislative action or by a court of competent jurisdiction to be contrary to law, then said provision shall be deemed severable from all other provisions and shall in no way affect the validity of the other provisions. B. The parties acknowledge that during the negotiations which resulted in this Agreement, each had the full right and adequate opportunity to make demands and proposals with respect to any subject or matter within the scope of representation, that the understandings arrived at after the exercise of that right are set forth in this Agreement. The express provisions of this Agreement for its duration, therefore, constitute the complete and total contract between the CITY and MCMA with respect to wages, hours and other terms and conditions of employment. Any prior or existing Agreement between the parties, whether formal or informal, regarding any such matters is hereby superseded and terminated in its entirety. The parties voluntarily waive the right to meet and confer in good faith with respect to any subject or matter referred to or covered in this Agreement, except that the parties, by mutual agreement, may meet and confer and agree to amend any matter in this Agreement, including compensation; provided, however, that the CITY may make changes to the personnel rules consistent with rights MCMA has to meet with the CITY prior to implementation of such changes. C. If the CITY should absorb another entity which results in employees of the other entity being covered by this MOU the CITY and MCMA shall expeditiously meet and confer regarding the effect of such action on wages, hours and other terms and conditions of employment of such new employees. D. All pertinent ordinances and resolutions shall be revised to conform with this MOU. All other ordinances, resolutions, rules and regulations, practices and policies shall continue in force and effect during the term of this MOU unless modified according to the provisions of this MOU. ARTICLE 52. PROVISIONS OF LAW It is understood and agreed that this MOU is subject to all current and future applicable Federal and State laws and regulations and the current provisions of the City Charter and Code. If any part or provision of this MOU is in conflict or inconsistent with such applicable provisions of those Federal, State or City enactments or is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provisions shall be suspended and superseded by such applicable law or regulations, and the remainder of this MOU shall not be affected. If any part or provision of this MOU is suspended or superseded, the parties agree to reopen negotiations regarding the suspended or superseded part or provision with the understanding that total compensation to employees under this MOU shall not be reduced or increased as a result of this Article. Effective Date: 7/24/07 39 MCMAMOU

100 ARTICLE 53. APPROVAL This MOU shall be presented to the Modesto City Council for approval and shall not be binding until so approved. CITY OF MODESTO Robin Renwick Personnel Director Date MODESTO CONFIDENTIAL AND MANAGEMENT ASSOCIATION ~a.ltj\m j2l~ \\/,$;/07 aurie Smith MCMA President Date ;2- -r-o 7 Date '~*lcf.a e~ ~Boston MCMA Vice President IIJ;s;/o1 Date ~ /2<-/.07 liitwj ~ /1/;5:/07 Bob Quintella Date Alirl Cozby Date Deputy Director Cultural & Enterprise Services MCMA Negotia or / I ~ - cf~ Ol ~ UI & 6dJ/1/1'----' I Jj; 5"/07 Ji I Peltier Date ~Urtln D~te I mployee Relations Specialist MCMA Director Effective Date: 7/24/07 40 MCMAMOU

101 Classifications and Salary Ranges Modesto Confidential and Management Association Bargaining Unit Effective July 24, 2007 Salary Range Classification 420 Accountant I (Confidential) 428 Accountant II 445 Accounting Division Manager 425 Administrative Analyst I 431 Administrative Analyst II 407 Administrative Clerk II (Confidential) 407 Administrative Office Assistant II (Confidential) 411 Administrative Office Assistant III (Confidential) 439 Administrative Services Officer 413 Administrative Technician (Confidential) 441 Airport Manager 427 Assistant City Clerk/Auditor 436 Assistant Civil Engineer 424 Assistant Planner 431 Assistant Risk Manager 436 Assistant Traffic Engineer 443 Associate Civil Engineer 430 Associate Planner 443 Associate Traffic Engineer 431 Budget Analyst I 434 Budget Analyst II 438 Budget Officer 441 Building Maintenance Superintendent 435 Business Analyst 447 Business Development Division Manager 424 Buyer 450 Chief Building Official 432 Communications Specialist 439 Community Facilities Districts Administrative Officer 430 Community Services Supervisor 432 Compost Facility Supervisor 435 Cultural Services Manager 423 Custodian Supervisor 442 Customer Services Division Manager 432 Customer Services Supervisor 446 Deputy Chief Building Official 420 Deputy City Clerk 436 Electrical Supervisor 435 Emergency Medical Services Coordinator FLSA Status Non-Exempt Non-Exempt Exempt Non-Exempt Both Non-Exempt Non-Exempt Non-Exempt Exempt Non-Exempt Exempt Non-Exempt Non-Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Non-Exempt Exempt Exempt Exhibit 1 Effective Date: 7/24/07 41 MCMAMOU

102 Salary Range Classification 420 Employee Benefits Coordinator 434 Environmental Laboratory Supervisor 430 Events Coordinator 438 Events Supervisor 420 Executive Secretary (excluding position in City Manager's Office) 441 Fleet Manager 441 Housing and Urban Development Manager 438 Housing Program Supervisor 446 Information Technology Unit Manager 435 Integrated Waste Specialist 432 Junior Civil Engineer 432 Junior Traffic Engineer 438 Land Surveyor 418 Legal Secretary (Confidential) 420 Legal Services Technician (Confidential) 435 Management Analyst 442 Manager of Budget and Financial Analysis 432 Neighborhood Preservation Supervisor 422 Office Supervisor (excluding position in Personnel Office) 432 Operations and Maintenance Supervisor 434 Operations Supervisor 433 Organizational Development Specialist 423 Parking Services Supervisor 441 Parks Operations Superintendent 441 Parks Planning and Development Manager 431 Personnel Analyst 447 Planning Division Manager 426 Police Civilian Supervisor 411 Police Clerk II (Confidential) 424 Police Facilities Coordinator 444 Principal Planner 438 Property Agent 419 Public Information Technician (Confidential) 438 Public Safety Business Services Analyst 441 Purchasing Manager 441 Recreation Program Manager 432 Recreation Supervisor II 431 Recycling Program Coordinator 434 Regulatory Compliance Supervisor FLSA Status Non-Exempt Exempt Non-Exempt Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Non-Exempt Non-Exempt Exempt Non-Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Non-Exempt Exempt Exempt Non-Exempt Exempt Exempt Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exhibit 1 Effective Date: 7/24/07 42 MCMAMOU

103 Salary Range Classification 434 SCADA Supervisor 415 Secretary (Confidential) 432 Senior Accountant 415 Senior Administrative Office Assistant (Confidential) 438 Senior Business Analyst 428 Senior Buyer 450 Senior Civil Engineer 434 Senior Community Development Program Specialist 430 Senior Crime Analyst 434 Senior Housing Rehabilitation Specialist 435 Senior Personnel Analyst 436 Senior Planner 430 Software Analyst I 434 Software Analyst II 438 Software Analyst III 442 Software Analyst IV 444 Solid Waste Program Manager 426 Stores Manager 441 Streets Superintendent 434 Supervising Accountant 426 Supervising Animal Control Officer 444 Supervising Building Inspector 442 Supervising Construction Inspector 434 Systems Engineer I 438 Systems Engineer II 442 Systems Engineer III 418 Systems Technician I (Confidential) 422 Systems Technician II (Confidential) 426 Systems Technician III (Confidential) 450 Traffic Engineer 444 Transit Manager 440 Transportation Planner 441 Urban Forestry Superintendent 422 Utility Dispatch Supervisor 441 Wastewater Collections Superintendent 446 Wastewater Treatment Plant Manager 432 Water Quality Control Maintenance Supervisor 440 Water Quality Control Operations Supervisor 447 Water Superintendent 435 Weed and Seed Program Coordinator 419 Workers' Compensation Claims Assistant 422 Workers' Compensation Claims Examiner I 427 Workers' Compensation Claims Examiner II FlSA Status Exempt Non-Exempt Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Non-Exempt Non-Exempt Non-Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Exempt Non-Exempt Non-Exempt Exempt Exhibit 1 Effective Date: 7/24/07 43 MCMAMOU

104 CITY OF MODESTO SCHEDULE OF SALARY RANGES IN CITY SERVICE FOR FY EFFECTIVE July 24, 2007 (amended August 8, 2007) SCHEDULE - D MANAGEMENT/CONFIDENTIAL GENERAL (MCMA) HOURLY Ran~e BI-WEEKLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , MONTHLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Effective Date: Exhibit 2 44 MCMAMOU 30( , , , , ,485 1,522 1,560 1, , , , , , , , , , , , , , , , , , , ,747.~" 3,841 3,937 4,035.,,0 4, ,239.88

105 CITY OF MODESTO SCHEDULE OF SALARY RANGES IN CITY SERVICE FOR FY EFFECTIVE July 24, 2007 (amended August 8, 2007) SCHEDULE - D MANAGEMENT/CONFIDENTIAL GENERAL (MCMA) HOURLY BI-WEEKLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , MONTHLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , % , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Effective Date: 7/24/07 Exhibit 2 45 MCMAMOU

106 CITY OF MODESTO SCHEDULE OF SALARY RANGES IN CITY SERVICE FOR FY EFFECTIVE July 24, 2007 (amended August 8, 2007) SCHEDULE - D MANAGEMENT/CONFIDENTIAL GENERAL (MCMA) HOURLY BI-WEEKLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , MONTHLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ( S :< , , , , , , , , , ,116.'- 3, ,194 3, ,274. '" 3, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,860 7, ,057 8, , , , Effective Date: Exhibit 2 46 MCMAMOU

107 CITY OF MODESTO SCHEDULE OF SALARY RANGES IN CITY SERVICE FOR FY EFFECTIVE July 24, 2007 (amended August 8, 2007) SCHEDULE - D MANAGEMENT/CONFIDENTIAL GENERAL (MCMA) HOURLY BI-WEEKLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , MONTHLY , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , % , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Effective Date: 7/24/07 Exhibit 2 47 MCMAMOU

108 MCMA APPROVED ALTERNATE WORK SCHEDULES (See Article 11, Approved Work Schedules for positions and classifications eligible to participate in these work schedules.) NINE-EIGHTY (9-80) WORK SCHEDULE The nine-eighty (9-80) work schedule shall consist of five (5) consecutive duty days for which the employee shall work nine (9) hours per day for four (4) days and eight (8) hours per day for one (1) day, followed by two (2) consecutive days off; followed by four (4) consecutive duty days for which the employee shall work nine (9) hours per day, followed by three (3) consecutive days off. The employee's workweek will be changed and will no longer be 12:01 a.m. Tuesday through 12:00 a.m. (midnight) Monday. It shall be changed to midday of the employee's "extra" day off to midday of the same day the following week. The Payroll Division of Finance shall be notified of this workweek. For example: Sunday Monday Tuesday Wednesday Thursday Friday Saturday Off Off Off Off Off Off The employee's workweek shall be from midday Friday to midday Friday. An employee on a Nine-Eighty (9-80) Schedule will receive an unpaid lunch period of not less than thirty (30) minutes and not more than sixty (60) minutes. Overtime shall be compensated in accordance with Article 14, Overtime for Non-Exempt employees. FOUR-ELEVEN (4/11) WORK SCHEDULE The 4111 Schedule shall consist of four (4) consecutive duty days, for which the employee shall work eleven (11) hours per day, followed by four (4) days off. The 4/11 Schedule requires that employees work fifty-six (56) hours per year in addition to their regular schedule. Of these fifty-six (56) hours, thirty-six (36) hours will be scheduled as four (4) nine (9)-hour training days. Each of these four (4) days will consist of nine (9) hours, excluding lunch. The remaining twenty (20) hours are owed to the City and shall be deducted from the employee's annual holiday entitlement. See Article 20, Holidays. Employees assigned to a 4/11 Schedule will have a paid lunch break of thirty (30) minutes coupled with one (1) fifteen (15) minute paid break, for a total of forty-five (45) minutes. Employees shall remain available by phone or radio, and are subject to recall at any time Exhibit 3 Effective Date: 7/24/07 48 MCMAMOU

109 during their lunch break. In the event of a recall or missed lunch break, there will be no additional compensation. Overtime for non-exempt employees shall be compensated in accordance with the Fair Labor Standards Act, 29 CFR Section (Fluctuating Work Week Schedule). MODIFIED FOUR-TEN (4/10) WORK SCHEDULE The Modified Four-Ten (4/10) workweek shall consist of four (4) consecutive duty days for which the employee shall work ten (10) hours per day, followed by four (4) consecutive days off. The Modified Four-Ten (4/10) Schedule requires that employees work two hundred and forty (240) hours per year in addition to their regular schedule. Of this, two-hundred and forty (240) hours, thirty-two (32) hours will be scheduled as four (4) training days. Each of these four (4) days will consist of eight (8) hours, excluding lunch. One hundred and twenty (120) hours will be worked as twelve (12) ten hour "double days" each year, to be scheduled by the supervisor and worked during the employee's normal thirty-hour (30) work week. The remaining eighty-eight (88) hours are owed to the City and shall be deducted from the employee's annual holiday entitlement. See Article 20, Holidays. An employee on a Modified Four-Ten (4/10) Schedule will receive an unpaid lunch period of not less than thirty (30) minutes and not more than sixty (60) minutes. Overtime for non-exempt employees shall be compensated in accordance with Article 14, Overtime For Non-Exempt Employees. Exhibit 3 Effective Date: 7/24/07 49 MCMAMOU

110 Attachment A: Definitions The following definitions are provided for information purposes, only, and are not a negotiable part of this Implementation Document. The definitions may be drawn from various City rules, policies, administrative orders or other documents and are subject to change pursuant to the provisions of those source documents. Advancement. A salary increase within the limits of the salary range established for the class. Applicant. A person who has made formal application for employment. Appointment. The offer to a person and his/her acceptance of a position. Class or Classes of Positions. A group of positions having duties and responsibilities sufficiently similar that the same title, examples of duties, and requirements may be applied. Classification Plan. The arrangement of positions into classes, with titles and specifications describing each class. Continuous Service. Employment by the City, uninterrupted from the date of appointment, except by authorized absence with pay. Demotion. A downgrade of a regular employee from one class to another class with a lower salary range imposed as. a disciplinary action or as a substitution for layoff. A reduction in salary within the same class shall not be considered a demotion. Disciplinary Probation. A form of disciplinary action, as distinguished from the usual probationary period for new employees, for a specified time not to exceed one year. Employees placed on disciplinary probation may be dismissed for failure to meet any requirement imposed as a condition to such status. Dismissal. The separation from employment of an employee by an appointing authority for cause. Domestic partnership is a partnership that complies with California Family Code Section 298 and is filed with the Secretary of State of the State of California. Downgrade. A change in employment status of a regular employee from one class to another class with a lower salary range. Eligible. A person whose name is on an appropriate eligible list and who is not ineligible for appointment for any reason. Eligible List. A record of the name of persons who have qualified, through examination, for employment in a specific class. Examination. A test or group of tests and evaluations used to determine eligibility and to rank candidates for employment in a class. Exempt and non-exempt. These terms reference the employee's status pursuant to the Fair Labor Standards Act (FLSA). Exempt employees are exempt from the overtime requirements of the FLSA. (See Exhibit 1: Classifications and Salary Ranges for FLSA status.) Grievance. A grievance is a disagreement between the CITY and an employee, group of employees, or MCMA concerning the interpretation, application, or violation of a specific Article(s) of this MOU or established written rules(s) or regulations(s), or custom(s) governing personnel practices. Interest Based Negotiations. Interest Based Negotiations is a process that focuses on satisfying as many interests or needs as possible for all negotiators. It is a problem solving process used to reach an integrative solution rather than describing rewards in a win/lose manner. Effective Date: 7/24/07 50 MCMAMOU

111 Lay-Off. Termination of service because of lack of work, lack of funds, or in the interests of economy, without fault on the part of the employee involved. Modesto Municipal Code. Chapter 5 of Title II of the Modesto Municipal Code plus any other provisions of the Modesto Municipal Code which deal with the City's personnel system. Overtime. Hours actually worked in excess of forty (40) hours in a workweek. Paid leave shall be considered as time actually worked for purposes of computing overtime. Overtime shall not affect leave accruals. Position. A combination of duties regularly assigned to be performed by one person. Probationary Period. A working test period during which an employee appointed from an eligible list is required to demonstrate his/her fitness for the class by actual performance of the duties of his/her position. Probationary Status. The status of an employee who has been appointed from an eligible list, but has not completed the prescribed probationary period. Probationer. An employee who has probationary status. Promotion. A change in employment status of a regular employee from one class to another class with a higher salary range. Provisional Employee. An employee who is appointed without examination to a regular position in the classified service for which no eligible list exists. Recognized Employee Organization. "Recognized Employee Organization" means an employee organization, which has been formally recognized by the City as the employee organization that represents the employees in an appropriate representation unit. Reduction. A salary decrease within the pay range for the class. Regular Employee. An employee who has satisfactorily completed his/her initial probationary period and has been retained in the classified service. Regular Position. A position in the classified service which requires, or is likely to require, the services of an employee for more than six months. Reinstatement. The reappointment without examination of an employee who has resigned in good standing. Release. Separation of an employee from the service during or at the close of the probationary period. Separation. Any termination of employment. Status. The condition of an employee's present appointment, such as temporary, provisional, probationary, or regular. Suspension. An involuntary absence without pay, imposed for disciplinary purposes, or pending investigation of charges. Temporary Appointment. An appointment for a limited period. Transfer. A change in employment status of a regular employee from one position to another within the same class, or a comparable class. "Comparable" means a class with similar duties and responsibilities, and the same or similar minimum qualifications, and the same salary range. Vacancy or Vacant Position. Any unfilled position in the City service. Effective Date: 7/24/07 51 MCMAMOU

112 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING THE CLASS RANGE TABLE FOR REPRESENTED MANAGEMENT AND CONFIDENTIAL NON-SWORN CLASSES AS SET FORTH IN EXHIBIT" A" ATTACHED HERETO EFFECTIVE JULY 24, 2007, AND ADOPTED CONCURRENTLY WITH RESOLUTION NO APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MODESTO AND THE MODESTO CONFIDENTIAL AND MANAGEMENT ASSOCIATION (MCMA) ADOPTING SALARY AND BENEFIT CHANGES FOR REPRESENTED MANAGEMENT AND CONFIDENTIAL NON-SWORN CLASSES EFFECTIVE JULY 24, WHEREAS, on July 24,2007, the City Council adopted Resolution No approving a Memorandum of Understanding (MOU) between the City of Modesto and the Modesto Confidential and Management Association (MCMA) setting forth salary and benefit changes for Represented Management and Confidential Non-Sworn Classes effective July 24, 2007, and WHEREAS, Council desires to establish a Class Range Table for said classes, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Class Range Table for Represented Management and Confidential Non-Sworn Classes, entitled "City of Modesto Class Range Table Represented Management and Confidential Non-Sworn Classes Effective July 24, 2007" which is attached hereto as Exhibit "A" and made a part hereof as though set forth in full herein. o 72407/PersonnellRRenwick/item

113 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007 by Councilmember Dunbar, who moved its adoption, which motion being duly seconded by Councilmember Hawn, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None ABSENT: Councilmembers: Keating Attest: ~H~ JE N MORRIS, CIty Clerk APPROVED AS TO FORM: By: SUS A ALCALA W lPersonnellRRenwicklitem

114 CITY OF MODESTO CLASS RANGE TABLE REPRESENTED MANAGEMENT AND CONFIDENTIAL NON-SWORN CLASSES Effective July 24, 2007 RANGE TITLE Administrative Clerk II (Confidential) Administrative Office Assistant II (Confidential) Administrative Office Assistant III (Confidential) Police Clerk II (Confidential) Administrative Technician (Confidential) Senior Administrative Office Assistant (Confidential) Secretary Legal Secretary Systems Technician I 419 Public Information Technician (Confidential) Workers' Compensation Claims Assistant 420 Accountant I (Confidential) Deputy City Clerk Employee Benefits Coordinator Executive Secretary (Represented) Legal Services Technician 421 Exhibit "A"

115 City of Modesto Class Range Table - Management and Confidential Non-Swom Classes Page -2 RANGE TITLE 422 Office Supervisor Utility Dispatch Supervisor Workers' Compensation Claims Examiner I Systems Technician II 423 Custodian Supervisor Parking Services Supervisor 424 Assistant Planner Buyer Police Facilities Coordinator 425 Administrative Analyst I 426 Supervising Animal Control Officer Police Civilian Supervisor Stores Manager Systems Technician III 427 Assistant City Clerk/Auditor Workers' Compensation Claims Examiner II 428 Accountant II (Represented) Senior Buyer Associate Planner Community Services Supervisor Events Coordinator Senior Crime Analyst Software Analyst I 431 Administrative Analyst II Assistant Risk Manager Budget Analyst I Personnel Analyst Recycling Program Coordinator Exhibit "A"

116 City of Modesto Class Range Table - Management and Confidential Non-Sworn Classes Page -3 RANGE TITLE 432 Communications Specialist Compost Facility Supervisor Customer Services Supervisor Junior Civil Engineer Junior Traffic Engineer Neighborhood Preservation Supervisor Operations and Maintenance Supervisor Recreation Supervisor II Senior Accountant Water Quality Control Maintenance Supervisor 433 Organizational Development Specialist 434 Budget Analyst II Environmental Laboratory Supervisor Operations Supervisor Regulatory Compliance Supervisor SCADA Supervisor Senior Community Development Program Specialist Senior Housing Rehabilitation Specialist Software Analyst II Supervising Accountant Systems Engineer I 435 Business Analyst Cultural Services Manager Emergency Medical Services Coordinator Integrated Waste Specialist Management Analyst Senior Personnel Analyst Weed and Seed Program Coordinator 436 Assistant Civil Engineer Assistant Traffic Engineer Electrical Supervisor Senior Planner 437 Exhibit "A"

117 City of Modesto Class Range Table - Management and Confidential Non-Sworn Classes Page -4 RANGE TITLE 438 Budget Officer Events Supervisor Housing Program Supervisor Land Surveyor Property Agent Public Safety Business Services Analyst Senior Business Analyst Software Analyst III Systems Engineer II 439 Administrative Services Officer Community Facilities Districts Administrative Officer 440 Transportation Planner Water QualityControl Operations Supervisor 441 Airport Manager Building Maintenance Superintendent Fleet Manager Housing and Urban Development Manager Parks Operations Superintendent Parks Planning and Development Manager Purchasing Manager Recreation Program Manager Streets Superintendent Urban Forestry Superintendent Wastewater Collections Superintendent 442 Customer Services Division Manager Manager of Budget and Financial Analysis Software Analyst IV Supervising Construction Inspector Systems Engineer III 443 Associate Civil Engineer Associate Traffic Engineer Exhibit "A"

118 City of Modesto Class Range Table - Management and Confidential Non-Sworn Classes Page -5 RANGE TITLE 444 Principal Planner Solid Waste Program Manager Supervising Building Inspector Transit Manager 445 Accounting Division Manager 446 Deputy Chief Building Official Information Technology Unit Manager Wastewater Treatment Plant Manager 447 Business Development Division Manager Planning Division Manager Water Superintendent Chief Building Official Senior Civil Engineer Traffic Engineer Exhibit "A"

119 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AMENDING THE FISCAL YEAR OPERATING BUDGET TO TRANSFER $302,548 FROM , GENERAL FUND RESERVE, AND $287,430 FROM OTHER FUND RESERVES, TO VARIOUS SALARY AND BENEFIT ACCOUNTS TO PROVIDE FUNDING FOR THE NEGOTIATED MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MODESTO AND THE MODESTO CONFIDENTIAL AND MANAGEMENT ASSOCIATION EFFECTIVE JULY 24, 2007 WHEREAS, the City Council desires to authorize salary and benefit changes as part of the negotiated Memorandum of Understanding between the City of Modesto and the Modesto Confidential and Management Association, effective July 24,2007, and WHEREAS, the FY costs associated with these changes are estimated at $601,978, effective July 24, 2007, and budgeted, WHEREAS, $589,978 of these increased expenditures have not yet been NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the Fiscal Year Operating Budget is hereby amended to transfer $302,548 from , the General Fund Reserve, and $287,430 from other Fund reserves to various salary and benefit accounts, to fund said salary and benefit changes negotiated as part of the Memorandum of Understanding between the City of Modesto and the Modesto Confidential and Management Association.

120 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Dunbar, who moved its adoption, which motion being duly seconded by Councilmember Hawn, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None ABSENT: Councilmembers: Keating Attest: ftr..l.h Iv{ ~ JEA MORRIS, CIty Clerk APPROVED AS TO FORM:!J ['1 ~~ a 1,/ By: I):, J2DN(!r~~j~.~ SUSANA ALCALA W D, City Attorney

121 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AUTHORIZING THE RISK MANAGER TO BIND EXCESS WORKERS' COMPENSATION INSURANCE WHEREAS, the City of Modesto has participated in the workers' compensation excess insurance pool, California Public Employers Insurance Authority (CPElA), since July I, 2002, and WHEREAS, the City's excess workers' compensation insurance renews on July 1,2007, and and WHEREAS, staff has received the invoice that reflects the 2007/2008 rate, WHEREAS, upon authorization from Council, staffwill bind Insurance coverage through the City's broker at $750,000 self-insured retention, and WHEREAS, the anticipated cost of said insurance coverage is $178,576 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the Risk Manager is hereby authorized to bind excess workers' compensation insurance coverage in the amount of$178,576 as presented by the City'S Broker of Record IPersonnellMAkin/itme

122 The foregoing resolution was introduced at a special meeting of the Council of the City of Modesto held on the 24th day of July 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: (Seal) APPROVED AS TO FORM By: lPersonneUMAkiniitme

123 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION AUTHORIZING THE RISK MANAGER TO BIND PROPERTY INSURANCE FOR THE CITY OF MODESTO OWNED AND/OR OPERATED PROPERTIES WHEREAS, Alliant Insurance Services has developed a joint-purchasing group of clients called PEPIP (Public Entity Property Insurance Program) which includes over 6000 public entities in 37 different states, with over $200,000,000,000 in covered values, and WHEREAS, PEPIP's loss experience, coverage form and pricing have been among the most competitive in the industry, and WHEREAS, renewal of said insurance is due on July 1, 2007, and WHEREAS, staff has received the invoice that reflects a 6% rate increase for property and boiler & machinery coverage due to several recent claims, and increased property value, and WHEREAS, based upon authorization from Council, staffwill bind the insurance coverage through PEPIP, at the cost of $295,529, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the Risk Manager is hereby authorized to bind property and boiler & machinery insurance coverage in the amount of $295,529 as presented by the City's Broker of Record pursuant to Council direction lPersoooelfMAkiniitem

124 The foregoing resolution was introduced at a meeting of the Council of the City of Modesto held on the 24th day of July, 2007 by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating ATTEST: (Seal) APPROVED AS TO FORM By: SUSANA XLCALA lPersonnellMAkinliteml

125 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING THE AGREEMENTS BETWEEN THE CITY OF MODESTO, KAISER PERMANENTE, BLUE SHIELD, AMERICAN SPECIALTY HEALTH PLANS (chiropractic coverage) AND P ACIFICARE BEHAVIORAL HEALTH; CONTINUING DENTAL AND VISION COVERAGE THROUGH THE CITY'S SELF-INSURED PROGRAMS AND AUTHORIZING THE RISK MANAGER TO SERVE AS THE COORDINATOR FOR THE VARIOUS PLANS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY AGREEMENTS WHEREAS, the City of Modesto provides its employees with employee and dependent health insurance coverage, and WHEREAS, the Employee Benefits Committee (EBC) has met and reviewed and evaluated coverage for Fiscal Year 2007/2008, and WHEREAS, the rates charged by the health insurance carriers will increase by 9% for Kaiser and 15.6% for Blue Shield, and WHEREAS, mental health rates will increase by 9%, and WHEREAS, the City's self-insured vision rates will increase by 14%, the City's self-insured dental rates by 6%, the chiropractic rates will remain the same, and Kaiser, and WHEREAS, the EBC voted to continue to offer two providers, Blue Shield and WHEREAS, Blue Shield will offer a Preferred Provider Option (PPO) to all employees, and a standard HMO option and, the co-pays, WHEREAS, the EBC recommended changing the health plan design by increasing lPersonnellMAkiniitem

126 2 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves execution of agreements with Kaiser Permanente, Blue Shield, American Specifilty Health Plans, and PacifiCare Behavioral Health. BE IT FURTHER RESOLVED that the Council hereby approves the continuation of dental and vision coverage through the City's self-insured programs as recommended by the Employee Benefits Committee. BE IT FURTHER RESOLVED that the Risk Manager is hereby authorized to serve as the coordinator for the various plans. BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute all necessary agreements relating to employee and dependent health care as set forth herein. The foregoing resolution was introduced at a special meeting ofthe Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating APPROVED AS TO FORM: Attest: ~N~ JE MORRIS, City Clerk IPersonnellMAkiniitem

127 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION ESTABLISHING ANGLE PARKIN IN T E RESCINDED CITY OF MODESTO AND RESCINDING RESOLUT ON N~OI%~.".im;:;;;8 "'$;;:O;;"'U:-:::IT~IO""N"'W""A.J$!!!IelNDED BY MODESTO 562 CITY CO~NCll IIE~OlUJJON NO. <"2DIQ~ _20:: WHEREAS, Article 10 of Chapter 2 of Title 3 of the Modesto Municipal Code authorizes the City Council, by resolution, to establish angle parking in the City of Modesto, and WHEREAS, City staff received a request from Catherine Cardoza Conner of Cardoza Family Partnership 1. P., to install angle parking on the east side of 13 th Street between F and G Streets to create additional on-street parking, and WHEREAS, staff evaluated the traffic volumes and the speeds for this section of roadway and concluded that angle parking can be accommodated on the east side of 13 th Street, between F and G Streets without creating a hazard and without impeding traffic flow, as follows: NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto SECTION 1. ANGLE PARKING. Angle parking in the City of Modesto is hereby established at the following locations: t 3 Portions of loth Street, between I & K Streets (west side) (diagonal) 18 th Street, between G and H Streets (west side) (diagonal) F Street, between 10 th and 11th Streets (south side) (diagonal) I Street, between 9 th and 12'h Streets (both sides) (diagonal) P Street, between 9 th and Needham Streets (both sides) (diagonal) Coldwell Avenue, between Tully Road and College Avenue 4th Street, between E Street and G Street (west side) PW /JBames/item

128 , l 16 th S~et, between I Street and J Street (east side) Elm Street, between Jefferson and Washington Streets (diagonal) i ili.. Jefferson Street, between 8 and Laurel Streets (diagonal) :: Li ili Street, between H and L Streets (east side) J Street, between 7 ili Street and 8 th Street (north side) 10ili Street, between G Street and F Street (east side) (diagonal) F Street, between loth Street and 11 ili Street (north side) (diagonal) 15 ili Street, between K Street and H Street (east side) (diagonal) F Street, between 9 ili Street and 10ili Street (north side) (diagonal) 8 th Street, between J Street and K Street (east side) (diagonal) 8 th Street, between K Street and L Street (east side) (diagonal) Sierra Drive between F Street and 4th Street (north side) 8 th Street between L Street and Jefferson Street (east side) (diagonal) M Street between 7 ili Street and Sili Street (south side) (diagonal) 10ili Street between G Street and I Street (east side) (diagonal) Sierra Drive between 6 ili Street and the alley at the west property edge of New Bethany Missionary Baptist Church (diagonal) Sierra Drive between 5 ili Street and 6 ili Street (north side) (diagonal) 6 th Street, Sierra Drive to north property line of New Bethany Missionary Baptist Church (west side) (diagonal) 13 th Street between F and G Streets (east side) (diagonal) SECTION 2. The Public Works Director is hereby directed to implement the provisions of this resolution. SECTION 3. Resolution No is hereby rescinded lPW/JBames/item

129 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: ~M~ JE MORRIS, CIty Clerk. APPROVED AS TO FORM: By: S PW IJBamesJitem

130 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION ACCEPTING THE WORK BY GRANITE CONSTRUCTION COMPANY FOR THE PROJECT TITLED "TRENCH DRAIN INSTALLATION AT GENERAL AVIATION T-HANGARS" AS COMPLETE, AUTHORIZING THE CITY CLERK TO FILE A NOTICE OF COMPLETION WITH THE STANISLAUS COUNTY RECORDER, AND AUTHORIZING PAYMENT OF AMOUNTS TOTALING $203, WHEREAS, a report has been filed by the Public Works Director that the project titled "Trench Drain Installation at General Aviation T-Hangers" has been completed by Granite Construction Company, in accordance with the contract agreement dated February 27,2007, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the project titled "Trench Drain Installation at General Aviation T-Hangers" is hereby accepted as complete from said contractor, Granite Construction Company, that the City Clerk is authorized to file a Notice of Completion with the Stanislaus County Recorder, and that payment of amounts totaling $203,273.16, is authorized as provided in the contract. 7/ PW/ T Pannerliten

131 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating (SEAL) APPROVED AS TO FORM: ATTEST: r~ \>~:""f1 - (I f\. By \.(.. \tan?/t4. Ja..4~. SUSANA AL ALA wooly, City Attorney 7/24/!07IPWI T Parrnerliten

132 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION ACCEPTING THE WORK BY VALLEY SLURRY SEAL COMPANY, FOR THE PROJECT TITLED "SLURRY SEAL INSTALLATION AT GENERAL AVIATION T-HANGARS PROJECT" AS COMPLETE, AUTHORIZING THE CITY CLERK TO FILE A NOTICE OF COMPLETION WITH THE STANISLAUS COUNTY RECORDER, AND AUTHORIZING PAYMENTS OF AMOUNTS TOTALING $60, WHEREAS, a report has been filed by the Public Works Director that the project titled "Slurry Seal Installation at General Aviation T-Hangers" has been completed by Valley Slurry Seal Company, in accordance with the contract agreement dated February 27, 2007, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the project titled "Slurry Seal Installation at General Aviation T -Hangers" is hereby accepted as complete from said contractor, Valley Slurry Seal Company, that the City Clerk is authorized to file an otice of Completion with the Stanislaus County Recorder, and that payment of amounts totaling $60,850.00, is authorized as provided in the contract. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duiy seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating (SEAL) APPROVED AS TO FORM: ATTEST: ~ MbA.!! 1J:;;. JEMORRIS, City Clerk ity Attorney 7/ IPW 1 KOhlsoniitem

133 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING A PROFESSIONAL SERVICES. AGREEMENT WITH BOB MURRAY AND ASSOCIATES TO CONDUCT A RECRUITMENT FOR THE POSITION OF DEPUTY DIRECTOR OF PUBLIC WORKS - OPERATIONS (WASTEWATER), IN AN AMOUNT NOT TO EXCEED $25,000, AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT. WHEREAS, the Deputy Director-Operations at the Wastewater Treatment Plant is vacant due to a resignation, and WHEREAS, this position is considered difficult to fill because of the combination of experience and education required, and WHEREAS, possession of a valid Grade V Wastewater Treatment Plant Operator Certificate is desirable and the available pool of candidates is limited due to this requirement, and WHEREAS, a Request for Proposal was sent to nine (9) professional firms and two qualified proposals were received, and WHEREAS, staff has selected the Sacramento-based firm of Bob Murray and Associates for recruitment services for the Deputy Director - Operations position, and WHEREAS, funds are budget within the Wastewater Fund in Account Number for this recruitment, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a Professional Services Agreement with Bob Murray and Associates to conduct a recruitment for the position of Deputy Director of Public Works - Operations (Wastewater) in an amount not to exceed $25, PW IBMacDonald/item

134 BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the agreement. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: (SEAL) APPROVED AS TO FORM: Keating ATTEST: ~ MOh.A.l4 JEA MORRIS, CIty Clerk PW IBMacDonaidlitem

135 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING THE SCENIC LIFT STATION PRELIMINARY DESIGN REPORT DATED JUNE 2007 AS COMPLETE WHEREAS, on September 3, 2003, by Resolution No , the Council approved an Agreement with Stantec Consulting, Inc., to complete the design for the rehabilitation of the Scenic Lift Station, and WHEREAS, on September 26, 2006, as a result of Council adopting Resolution No , changing the procedures that Public Works uses for projects of more than one million dollars, Stantec Consulting, Inc., was directed to change the scope of work to develop a 35% design effort and a Preliminary Design Report (PDR) for the Scenic Lift Station, and WHEREAS, the PDR includes the Scenic Lift Station design criteria, design approach, hydraulic calculations, and preliminary equipment selections along with probable costs for the project, and is a key source document for the final project design of the project, and WHEREAS, Stantec Consulting, Inc., has completed the Scenic Lift Station Preliminary Design Report, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Scenic Lift Station Preliminary Design Report as complete. 07 J24/071PW I Jennifer Prattiitem

136 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating.b'c:"---'H'---c'-""lO\A~'""'l.c:.""' A TTEST: _-"(1,.'11-"fj'""'A... "'- JUAN MORRlS, City Clerk (SEAL) APPROVED AS TO FORM: (;:" ('. B y I~ \10! ~'!J- Ii lslj'fv \v~ (1 ~. SUSANA AL A WOOD, City Attorney 07/24107IPW IJennifer Prattlitem

137 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING THE EL RIO SEWER REPLACEMENT PROJECT PRELIMINARY DESIGN REPORT DATED JULY 2007 AS COMPLETE WHEREAS, on December 7,2004, by Resolution No , the Council approved an Amendment to an Agreement with HDR Engineering to complete the design for the EI Rio Sewer Replacement Project, and WHEREAS, on September 26, 2006, as a result of Council adopting Resolution No , changing the procedures that Public Works uses for projects of more than one million dollars, HDR Engineering was directed to change the scope of work to develop a 35% design effort and a Preliminary Design Report (PDR) for the EI Rio Sewer Replacement Project, and WHEREAS, the PDR includes the evaluation of three design options for replacement of the EI Rio sewer line and also discusses the implications of the "Do Nothing" alternative, and WHEREAS, HDR Engineering has completed the EI Rio Sewer Replacement Project Preliminary Design Report, and WHEREAS, the preferred option is to install new sewer laterals and a new sewer main in EI Rio Avenue by micro tunneling to minimize disruption and intrusion, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the El Rio Sewer Replacement Project Preliminary Design Report dated July 2007 as complete. 07/24/07IPW flprattlitem

138 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: _-=(!,~&.J0~=-,=-=,N,=-,~O\,-,-,::Au::,~",-- J!fAN MORRlS, CIty Clerk (SEAL) APPROVED AS TO FORM: 07/24/07IPW /jprattiitem

139 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION REJECTING THE FOUR (4) BIDS FOR THE PROJECT TITLED "PAMELA MONTEROSSO PARK" AND AUTHORIZING STAFF TO RE-ADVERTISE THE PROJECT AT A FUTURE DATE WHEREAS, the four bids received for the "Pamela Monterosso Park" project were opened at 11 :00 a.m. on June 5, 2007, and later tabulated by the Public Works Director for the consideration of the Council, and WHEREAS, the four bids received for the "Pamela Monterosso Park" project were 15.67%,26.68%,65.79%, and 69.27% above the consultant's estimate, and WHEREAS, all bids for the project exceeded the consultant's estimate by an excessive amount, and WHEREAS, during the bid evaluation process staff determined that the four bids unreasonably exceeded the consultant's estimate. Therefore, staff recommends the bids be rejected and staff be allowed to re-advertise the project, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the four bids received for the "Pamela Monterosso Park" project opened in the office of the City Clerk on June 5, 2007, are hereby rejected. BE IT FURTHER RESOLVED that staff is hereby authorized to re-advertise the project at a future date. 07/24107IPW IDPhillips/item

140 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007 by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST: ~ta..h No\"'u~ JEA MORRlS, CIty Clerk APPROVED AS TO FORM: (;('\ By \j\ SUSANAAL 07/24/07IPW IDPhillips/item

141 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING A NEW NORTH CERES SEWER SERVICE AREA AGREEMENT WITH THE CITY OF CERES, AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE NEW AGREEMENT WHEREAS, on December 18,1979, by Resolution , the City of Modesto (Modesto) and City of Ceres (Ceres) executed the North Ceres Sewer Service Area Agreement (existing Agreement), and WHEREAS, pursuant to the terms of this existing Agreement, Modesto agreed to accept and treat sewage collected from the designated North Ceres Sewer Service Area (NCSSA), and WHEREAS, Ceres agreed to pay sewer service charges to Modesto for all properties within the NCSSA at Modesto's rate for industrial uses, and WHEREAS, the existing Agreement included a provision requiring Ceres to collect and pay to Modesto a "sewer bond redemption charge" (connection fee, now termed "capacity charge") for all residential units and mobile homes or mobile home spaces in a mobile home park connected to the system, and WHEREAS, Ceres also agreed to collect and pay to Modesto a similar connection fee for each acre of commercial property connected to the system, and WHEREAS, Modesto transferred to Ceres all rights, title, and interest to the sewer collection system in the area and Ceres is obligated to maintain the system, and WHEREAS, Ceres also paid for the construction of a sewage volume monitoring station (station) on Hosmer Road to measure wastewater flow to Modesto's wastewater treatment facility, with Modesto obligated to maintain the station, and WHEREAS, the station has not functioned properly for years due to pipeline and flume issues and flows have been estimated, with sample tests of Biochemical Oxygen Demand (BOD) PW lnpinhey/item

142 and Total Suspended Solids (TSS) taken periodically by Modesto to determine the monthly industrial rate charges to Ceres, and WHEREAS, billing Ceres using the same methodology and basis used to bill customers in the Modesto system would be easier and more accurate than calculating bills based on flow estimates, and WHEREAS, Modesto commenced proceedings under Proposition 218 to increase its sewer service rates, and WHEREAS, the proposed rate increases are scheduled to be considered for approval by the Modesto City Council under a separate action on July 24, 2007, with an effective date of August 1, 2007, and WHEREAS, the proposed rate increase created Proposition 218 procedural issues for Ceres, as Ceres is required to comply with Proposition 218 requirements to pass on the rate increases to its customers within the NCSSA, which cannot be completed prior to the proposed effective date of Modesto's rate increase (August 1, 2007), and WHEREAS, it is necessary to amend the existing Agreement to address the issues related to monitoring and calculating charges and to provide consistency with the method used for charging other users in Modesto's wastewater system, and Agreement: WHEREAS, the following summarizes the significant provisions of the New NCSSA 1. Area affected by the New Agreement - northeast portion of the existing agreement has been eliminated and an area in southwest portion has been added as shown in Exhibit A attached 2. Charges to Ceres for Wastewater Treatment - charges will be based on type of use conducted on each parcel at the same rates charged for the same classification of use charged within Modesto. Ceres will compute charges monthly and make payment to Modesto, and will advise Modesto if additional parcels are added and will add to monthly billing amount, 3. Effective DatelImplementation Date - Agreement will not be implemented for 120 Days after approval by Modesto and Ceres City Councils to allow Ceres time to complete any Proposition 218 procedures necessary. During the PW INPinhey/item

143 period of delay, Ceres will continue to pay at the old industrial rate and method of computation per the existing Agreement 4. Collection of Sewer Capacity Fees for Each Parcel- new sewer capacity charges are to be paid after the implementation date of the new Agreement. These fees are not subject to Proposition 218 procedures. 5. Term of Agreement - continues indefinitely unless terminated or modified by the mutual agreement of the parties. 6. Sanitary Sewer Overflows - each City responsible for reporting sanitary sewer overflows within their respective sewer systems. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the new North Ceres Sewer Service Area Agreement with the City of Ceres. BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the new Agreement. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, upon roll call carried and the resolution adopted by the following vote: AYES: NOES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour Councilmembers: None ABSENT: Councilmembers: Keating (SEAL) ATTEST: ~CLn M~ J N MORRIS, CIty Clerk APPROVED AS TO FORM: /PW lnpinhey/item

144 , ' l i' -,., I...,,...," \ 1--- I j i I r, ---.'-:--'-.,i.;, -1, t,-t'" I' "'" ~", I J, I ',1 NO, EXHIBIT "A" NORTH CERES SEWE RAREA " ;: '

145 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION APPROVING THE WASTE DISCHARGE REQUIREMENTS (WDR) GAP ANALYSIS PREPARED BY HDR ENGINEERING AS THE CITY OF MODESTO'S SANITARY SEWER MANAGEMENT PLAN (SSMP) AND SCHEDULE AS REQUIRED BY THE STATE WATER RESOURCES CONTROL BOARD. WHEREAS, on May 2, 2006, the State Water Resources Control Board initiated Order No DWQ, which is the Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems, and WHEREAS, this order identifies milestones that the City of Modesto has to meet and the City must identify a plan and schedule to meet these goals by August 2, 2007, and WHEREAS, the order requires that the WDR-SSMP and Schedule be approved by the City Council and then posted on the Regional Board's website, and WHEREAS, the new WDR identifies specific milestone for Goals, Organization, Legal Authority, Operations and Maintenance Program, Design and Performance Provisions, Overflow Emergency Response Plan, Fats, Oil and Grease (FOG) Control Program, System Evaluation and Capacity Assurance Plan (SECAP), Monitoring, Management and Plan Modifications, SSMP Program Audits and Communication Program, and WHEREAS, the Gap Analysis prepared by HDR Engineering Inc. identifies the City of Modesto's implementation plan and schedule and serves as the City'S SSMP and Schedule as required by the Regional Board, and WHEREAS, approval by City Council will ensure compliance with the August 2, 2007 deadline by the Regional Board, 07/24107 fpw lpinheylitem

146 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the WDR Gap Analysis prepared by HDR Engineering as the City of Modesto' s Sanitary Sewer Management Plan (SSMP) and Schedule as required by the State Water Resources Control Board. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: Councilmembers: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None ABSENT: Councilmembers: None ATTEST: ~M~ JEAN MORRIS, City Clerk (SEAL) APPROVED AS TO FORM: SUSANA ALCALA WOOD, City Attorney 07/24/07IPW lpinheylitem

147 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION DIRECTING THE CITY CLERK TO SUBMIT TO THE VOTERS AT THE NEXT REGULAR MUNICIPAL ELECTION A MEASURE SEEKING AN ADVISORY VOTE ON THE QUESTION OF WHETHER THE CITY OF MODESTO SHOULD CHANGE ITS SYSTEM OF ELECTING CITY COUNCILMEMBERS. BE IT RESOLVED by the Council of the City of Modesto as follows: SECTION I. Pursuant to Article 11 of Section 3 of the California Constitution and Section 9255(a)(2) of the California Elections Code, and California Government Code Section 34458, the Council of the City of Modesto proposes to and does hereby, on its own motion, submit to the qualified electors of the City of Modesto, at the regular municipal election to be held on November 6, 2007, a measure seeking an advisory vote on the question of whether the City of Modesto should change its system of electing City Councilmembers. SECTION 2. That a measure is to appear on the ballot as follows: Advisory Vote Only. 1. Should Modesto change its system of electing City Councilmembers? Please answer the next question, whether you voted "Yes" or "No" on this question 1. YES NO Atty/SWoodiitem

148 Advisory Vote Only. 2. If the City of Modesto were to change its system of electing City Councilmembers, which of the following systems would you prefer? The Mayor would remain elected by all voters in the City under either option. (Choose only one) 2a. "By District": Six Districts where candidates must live in the District they wish to represent and the voters who live in the District vote on who will represent that District. 2b. "Mixed": Two At-Large Council seats, where candidates may live anywhere in the City and are voted on by all City voters; and Six Districts where candidates must live in the District they wish to represent, and the voters who live in the District vote on who will represent that District. G G SECTION 3. That the City Clerk is hereby directed to file a certified copy ofthis resolution with the Board of Supervisors and the County Election Department of the County of Stanislaus. SECTION 4. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions /Atty/SWood/item

149 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by Councilmember Hawn, who moved its adoption, which motion being duly seconded by Councilmember Marsh, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating (SEAL) APPROVED AS TO FORM: \~ v By SUSANA ALCALA WOOD, City Attorney JE N MORRIS, CIty Clerk Atty/SWoodJitem

150 t'age 1 or 1 Jean Morris From: Sent: To: Cc: Subject: Sensitivity: Susana Wood Friday, August 03, :09 PM Jean Morris COUNCIL; George Britton Technical amendments to Advisory Ballot Measure Confidential Attachments: Technical amendments to Advisory Ballot Language.doc Jean, Because the County Registrar has split the advisory measure into different measures, technical amendments to the question are necessary to refer to the questions as "Measures" instead of "questions". I have made those technical amendments, which are attached hereto. Please transmit this technical amendment to the Registrar's office. No action is needed by the Council, and this will not change the argument dates as published. I have confirmed with County Counsel that this is the process to follow. Susana Wood 8/6/2007

151 Technical Amendments Measure I Advisory Vote Only. Should Modesto change its system of electing City Councilrnembers? Please answer the next measure, whether you voted "Yes" or "No" on this measure. MeasureJ YES NO G G Advisory Vote Only. If the City of Modesto were to change its system of electing City Councilrnembers, which of the following systems would you prefer? The Mayor would remain elected by all voters in the City under either option. (Choose only one) a. "By District": Six Districts where candidates must live in the District they wish to represent and the voters who live in the District vote on who will represent that District. b. "Mixed": Two At-Large Council seats, where candidates may live anywhere in the City and are voted on by all City voters; and Six Districts where candidates must live in the District they wish to represent, and the voters who live in the District vote on who will represent that District. G G

152 MODESTO CITY COUNCIL RESOLUTION NO A RESOLUTION DIRECTING THE CITY CLERK TO TRANSMIT A COPY OF THE MEASURE SEEKING AN ADVISORY VOTE ON THE QUESTION OF WHETHER THE CITY OF MODESTO SHOULD CHANGE ITS SYSTEM OF ELECTING CITY COUNCILMEMBERS TO THE CITY ATTORNEY FOR THE PURPOSE OF PREPARING AN IMPARTIAL ANALYSIS OF SAID MEASURE. WHEREAS, the Modesto City Council has directed the City Clerk to submit to the voters at the next regular municipal election to be held on November 6, 2007, a measure seeking an advisory vote on the question of whether the City of Modesto should change its system of electing City Councilmembers. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that the City Clerk of the City of Modesto is hereby directed pursuant to California Elections Code Section 9280 to transmit a copy of said measure to the City Attorney, who is hereby directed to prepare an impartial analysis of the measure showing the effect of the measure on existing law and the operation of the measure Atty/SWoodJitem

153 TheJoregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on, the 24th day of July, 2007, by Councilmember Marsh, who moved its adoption, which motion being duly seconded by Councilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: Councilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour NOES: Councilmembers: None ABSENT: Councilmembers: Keating JE MORRIS, CIty Clerk (SEAL) APPROVED AS TO FORM:

154 MODESTO CITY COUNCIL RESOLUTION NO RESCINDED ~ftl1v 2 5 SOLUTIONS A RESOLUTION RECINDING ALL PREVIOUS SEWER F ES AND ESTABLISHING FEES FOR THE PROVISION OF S WER ~m~ LUTiOH WAil RESCINDED BY MODESTO Chin: COtitlCIL RESOLUTION WHEREAS, Section of the Modesto Municipal _",e"'-!;!;au:!:t~o!!n~i1lc~u!l~~e~s;;~, d =cd,~c:::'~21:.:;:;j~..j Council to establish sewer service charges from time to time by resolution, and WHEREAS, the Council has previously established sewer service charges, and WHEREAS, Proposition 218 was passed in November of 1996 and became effective with respect to sewer rates on July 1, 1997, and WHEREAS, on July 24, 2007, the Council held a public hearing pursuant to Proposition 218 with respect to adjustment of sewer rates, and WHEREAS, notices of a sewer rate adjustment and public hearing were mailed on June 8, 2007 to sewer customers as shown in Exhibit "A" attached hereto and incorporated herein by reference, and WHEREAS, insufficient protests were made to defeat imposition of the sewer rate adjustments resulting in increases in some cases, therefore the rates in the notice are hereby imposed as set forth more specifically below, as follows: NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto SECTION 1. DEFINITIONS. Unless the context requires a different meaning, for the purposes of this resolution the definitions set forth in Section of Chapter 6 of Title 5 of the Modesto Municipal Code entitled "DEFINITIONS" shall apply. 1. Director: The City officer or designee in charge of utilities Financel\VPadilla/item

155 2. Monthly account charge: A monthly fee charged to every sewer account to pay the actual fixed sewer system costs not allocable to sewer flow and strength components. 3. Person. Any individual, partnership, corporation or other legal entity whatsoever applying for or receiving City sewer service. SECTION 2. SEWER SERVICE CHARGES FOR RESIDENTIAL SERVICE. Each person receiving residential sewer service shall pay a sewer service charge to the City in accordance with the following rates: (a) The maximum monthly sewer service charges for dwelling units, mobile homes and mobile home spaces in mobile home parks shall be as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Maximum Residential Rates 1-Aug-07 1-Jul-08 I-Jul-09 I-Jul-IO I-Jul-II Monthly Account Charge ($/ Account) $2.57 $3.71 $4.26 $4.53 $4.74 plus Dwelling Unit Charge ($/Dwelling Unit) Single Family Residential, Mobile Home on a lot $15.97 $23.17 $26.65 $29.48 $30.98 Multiple Family (2-4 Dwelling Units), one additional Dwelling Unit or Mobile Home on a lot $13.71 $19.89 $22.89 $25.31 $26.60 Apartments (5 or more Dwelling Units), Mobile Home Space in a Mobile Home Park $10.41 $15.10 $17.37 $19.21 $20.19 SECTION 3. SEWER SERVICE CHARGES FOR COMMERCIAL SERVICE. Each person receiving commercial sewer service shall pay a maximum sewer service charge to the City in accordance with the following rates: (a) Commercial users shall be grouped according to Biochemical Oxygen Demand (hereinafter referred to as BOD) and Total Suspended Solids (hereinafter referred to as TSS) strength characteristics and shall pay sewer service charges based on the quantity of water used, and the waste strength Finance/WPadillaiitem

156 by the City COlUlcil in a reasonable amolult of time in advance of the new sewer rate becoming effective. The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of July, 2007, by COlUlcilmember Hawn, who moved its adoption, which motion being duly seconded by COlUlcilmember Dunbar, was upon roll call carried and the resolution adopted by the following vote: AYES: NOES: ABSENT: (SEAL) COlUlcilmembers: Councilmembers: COlUlcilmembers: Dunbar, Hawn, Marsh, O'Bryant, Olsen, Mayor Ridenour None Keating ATTEST:~~ JE N MORRIS, CIty Clerk APPROVED AS TO FORM: By: ~J SUSANA A. WOOD, City Attorney FinancelWPadiliaiitem

157 characteristics measured in milligrams per liter (hereinafter referred to as mg/i). The Director shall determine the waste strength characteristics of commercial users and assign them to one of the following commercial users groups: Year I Year 2 Year 3 Year 4 Maximum Commercial Rates I-Aug-07 I-Jul-08 I-Jul-09 I-Jul-IO Monthly Account Char.ge ($/ Account) $2.57 $3.71 $4.26 $4.53 plus Quantity Charge ($/100 cubic feet) Group I-BOD + TSS is 400 mg/i or less $1.35 $1.97 $2.26 $2.50 Group 2-BOD + TSS is 40 I mg/i to 900 mg/i $1.67 $2.42 $2.78 $3.11 Group 3-BOD + TSS is 901 mg/l to 1,400 mg/i $1.98 $2.87 $3.31 $3.73 Group 4-BOD + TSS is 1,401 mg/i or more $2.36 $3.42 $3.94 $4.46 Year 5 I-Jul-II $4.74 $2.63 $3.27 $3.91 $4.69 (b) Commercial users shall have all water used on the premises metered in order to determine the users' sewer service charges. (1) Commercial users on a public water system other than the City's shall obtain a metered water service from the water purveyor and shall pay the sewer service charge which would be made were such water from the City's water system. (2) Commercial users receiving any water from a private source shall allow the City to furnish, install and maintain a water meter with the user paying for the cost of the meter and installation. The user shall pay the sewer service charge which would be made were such water from the City's water system. Authorization shall be granted to City from user to install, read and maintain said meter by user executing an agreement on a form furnished by the Director. (c) In the case of existing meters which are under the ownership of users, the City will assume responsibility for maintenance of such meters upon: (1) Receipt of transfer of title from the owner in a form satisfactory to the Director, and (2) Authorization being granted to City for reading and maintaining the meter as set forth in paragraph (b) above. (d) Schools, churches, assembly halls and similar facilities shall be considered Group Finance!WPadillaJitem

158 SECTION 4. SEWER SERVICE CHARGES FOR INDUSTRIAL SERVICE. Each person receiving industrial sewer service shall pay a maximum sewer service charge to the City in accordance with the following rates: (a) The monthly sewer service charges for industrial users shall be at the following rate of per million gallons of total flow. Year I Year 2 Year 3 Year 4 Year 5 Maximum Industrial (Major and Minor) Rates I-Aug-07 I-Jul-08 I-Jul-09 I-Jul-IO I-Jul-11 Monthly Account Charge ($/Account) $2.57 $3.71 $4.26 $4.53 $4.74 plus Quantity Charges (these three components are additive) Flow Charge ($lmillion gallons) $1, $ $2, $2, $2, BOD Charge ($11,000 Ibs) $72.98 $ $ $ $ TSS Charge ($/1,000 Ibs) $ $ $ $ $ (1) If the Industry has an effluent meter for industrial flow measurement and a sanitary sewage meter, the total flow shall be the sum of the metered flows. Sanitary Sewage Flow: IfIndustry has an unmetered connection for disposal of sanitary sewage, the estimated volume may be established by the Director. The estimated volume shall be based on the number and type of plumbing fixture units contributing to the system along with any other flow information available which indicates the total volume of sanitary sewage. (2) In the absence of an effluent meter, an influent meter shall be used, and total flow shall be based upon the influent meter reading. (3) The BOD and TSS charges for industrial and sanitary discharges shall be based on the measured or estimated BOD and TSS for each type of flow. SECTION 5. FLOW ESTIMATES. The Director will estimate flow where he/she determines metered flow measurements are unreliable FinancelWPadillaJitem

159 SECTION 6. SEWER SERVICE CHARGES FOR DUMPING OF SEPTIC WASTE AT THE SEWAGE TREATMENT PLANT Year I Year 2 Year 3 Year 4 Charge I-Aug-07 I-Jul-08 I-Jul-09 I-Jul-IO Flow charge per 1,000 gallons $38.94 $55.68 $63.93 $73.59 Year 5 I-Jul-II $77.44 SECTION 7. INFLATOR INDEX AND REASSESSMENT OF COST OF SERVICE The cost of service set forth above shall be re-examined not less than every four years by professionals competent in the field. Such professionals shall provide a report to the City updating both the fixed and volume based costs as appropriate and as recommended to the Council by the Director and Finance Director. Beginning on July 1,2012 and annually thereafter, the Finance Director with the concurrence of the Director, shall have the authority to adjust the above rates by an amount not to exceed the not-seasonally-adjusted annual percentage increase in the April Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers for the San Francisco CMSA that is currently prepared by the Department of Finance. SECTION 8. SULFIDE CORROSION CHARGES. Any wastewater discharge which exceeds 0.5 parts per million of sulfides shall pay a sulfide corrosion charge, an impact fee, determined on a case-by-case basis as follows: (a) (b) The projected accelerated corrosion of collection system pipes and pump stations will be calculated based on the EPA Pomeroy Model for Sulfide Corrosion (EPA Design Manual, EPAl625/ , Section Corrosion Predictive Model). The sulfide corrosion charge will then be calculated based on the actual pipes and pump stations, up to the Water Quality Control Plant FinancelWPadilla/item

160 Headworks, impacted by the discharge, and on the current estimates of replacement costs and the time value of money. (c) Discharges of sulfide above 0.5 ppm shall also not have a ph lower than 7. (d) The discharger may request that the sulfide charge be recalculated each year, if the amount of sulfide discharged is documented as having changed significantly from the previous year. The discharger may elect to receive the billing for this service charge on an annual or monthly basis. No prepayment discount will apply. ( e) This service charge is an impact fee based on sulfide crown corrosion of collection system pipes and pumping facilities. It is not intended to compensate the City for increased corrosion or odor generation in the Water Quality Control Plant. It is not intended to liquidate the responsibility of a party whose wastewater discharge escapes from the collection system causing soil or groundwater contamination. Discharge of concentrated sulfides under the provisions of this section constitutes acceptance of these terms. SECTION 9. SEWAGE TREATMENT FOR OUTSIDE PUBLIC AGENCIES. Pursuant to agreements approved from time to time by the City Council and the City Attorney (as to form), other public agencies will own and operate, and the City of Modesto will accept and treat sewage collected from, sewer systems external to the City and City's Sewer District No. 1. SECTION 10. EFFECTIVE DATE. This resolution shall go into effect and be in full force and operation on and after August I, SECTION 11. RESCINDING PRIOR RESOLUTIONS. All previous sewer fees resolutions are hereby rescinded effective August 1, Section 12. ANNUAL REVIEW OF ADOPTED RATE INCREASES. The City Council, for fiscal years beginning after June 30, 2008, shall conduct a review of each adopted sewer rate increase prior to its implementation. Said review shall be acted upon FinancefWPadillaJitem

161 City of Modesto City Clerk P.O. Box Tenth Street, Suite 6600 Modesto, CA NOTICE OF PROPOSED SEWER RATE INCREASE and of PUBLIC HEARING *_~['!~'?~.~[ ~1 ~ _~I}Yf~!9P.~. «Owner Namel» «Addressl» < <Address2> > «Address3» < <Address4> > THE CITY OF MODESTO GIVES NOTICE that 1. The City is proposing to increase sewer rates. The purpose of the proposed increase is to the fund operation, maintenance and replacement costs related to providing sewer service to properties within the Modesto Sewer Service Area. The improvements are necessary to maintain, operate, rehabilitate, upgrade and replace existing sewer distribution and treatment facilities as well as all related administrative and incidental costs, including the costs of the hearing shown below and the costs of financing the sewer improvements. 2. The proposed schedule of maximum rates for August 1, 2007 through June 30, 2012 is shown in the table below. If the rate increases are approved, it is proposed that they will commence to be collected beginning with the August 1, 2007 utility bills and will continue to be conected until otherwise modified by the City. The sewer rates will not e.'(ceed the maximum amounts shown without another written notice to the property owners. All increases will occur as of July 1 of each subsequent year. 3. Before taking final action on the proposed rate increase, the City Council will hold a PUBUC HEARING on Tuesday, July 24, 2007, at 5:30 p.m. in the City Council Chambers, 1010 Tenth Street, Basement Level, Modesto. The Public Hearing being held to allow the public to provide testimony on the proposed sewer rate increase. The Council may continue the hearing from time to time without further written notice. 4. Any property owner may file with the City Clerk, at any time before the end of the Public Hearing, a written protest against the proposed rate increase. The written protest must identify the property, the property owner, and be signed by the owner of the property or an authorized representative of the owner of the property. A protest form has been provided below for your use. The written protests may be hand delivered or mailed to the City Clerk at the City's address shown above. To be counted, the City Clerk must ~ a written protest not later than the end Qfthe Public Hearing specified ~. Protests by telephone, fax, or will not be accepted. A majority protest exists if, at the end of the Public Hearing, there are valid written protests submitted by owners of a majority of the properties subject to the proposed rate increase. A majority protest will result in the proposed rate increase not being imposed. Note that no more than one protest per property may be submitted. 5. To get additional information about the proposed rate increase, contact Customer Service at (209) or sewerrates@modestogov.com Additional written material relating to protest procedures is available at the above City Oerk address during regular business hours.,, I/'~,L"~'.L"m :I,';:,~I,~':,',.':',,';'071,'::~., 1,';:;, 1,';:,'" 1,';:,', " ~"id,"'", I ~' Em! 1111 ~ I ~ " I i I $ c,""""', i :~:~:~::~ i Duplex::; 2. units x $13.71funil" $ $2.571account" $29,99 i 10 UnitApartmenl" 10 units x $10.41lunit" $ $2.S7Iaccoutlt::; $106.97, ~ ~ : M::; million BOD" Bio-cllemical Oxygen Demand " '~mm.o" 7SS" I ls,'., lop,000" moll". The proposed rate increase(s) are based on currently available information. Your actual bills are rounded and may be slightly different than listed above. State law requires that all property owners affected by the rate increase(s) be given the opportunity to protest the proposed rate increase(s). Beginning 00 July 1, 2012, maximum rates will be adjusted each year thereafter by the annual change in the Consumer Price Index (CPI), Urban Wage Earners and Clerical Workers Series for the San Francisco CMSA that is currently prepared by the California Department of Finance. The actual rates to be levied each year will not exceed the adjusted maximum rates in any given fiscal year without notification and right of protest by the property owners. SAMPLE - Protest Form If you would like to protest the proposed Sewer Rate Increase, you may complete this Protest Form, detach it, and mail it to the Modesto City Clerk, P.O. Box 642, Modesto, CA or hand deliver the form to the City Clerk's office, 1010 Tenth Street, Sixth Floor, Modesto, CA In order for this form to be counted as a valid protest against the proposed rate increase, this form must be signed and delivered to the City Clerk no later than the end of the Public Hearing on July 24, Only one protest is anowed per property. Assessor's Parcel Number: «APN» Parcel Address: «Situs Address» D I protest the proposed sewer rate increase to fund operation, maintenance and replacement costs related to providing sewer service to properties within the Modesto Sewer Service Area. I hereby declare under penalty of perjury that I am the owner of the above listed property or the authorized representative of the owner of the above listed property. Please sign here and then print your name: SAMPLE Please print the property owner name here:,sai\fpix :