LOS Banos · Sirequiere asistencia especialpara atender0 participaren esta junta porfavor lIame a ... (Pursuant to Government Code ... {1zzipv{lwiLL resign her pos(t(on Of Los

LOS BanosAt the Crossroads of California

www.losbanos.org

AGENDA

JOINTCITY COUNCIL AND

REDEVELOPMENT AGENCY MEETING

CITY HALL COUNCIL CHAMBERS520 J Street

Los Banos, California

DECEMBER 17, 2008

Si requiere asistencia especial para atender 0 participar en esta junta por favor lIame a la oficinade la Secretaria de la ciudad al (209) 827·7000 a 10 menos de 48 horas previas de lajunta.

La Cuidad de Los Banos cumple con la Acta de Americanos con Deshabilidad (ADA) de 1990.

**

Any writings or documents provided to a majority of the City Council! Redevelopment Agencyregarding any item on this agenda will be made available for public inspection at the meeting

and in the City Clerk's office located at City Hall, 520 J Street, Los Banos, Californiaduring normal business hours. In addition, such writings and documents may be posted

on the City's website at www.losbanos.ora... *********

:' ,ii:

::: ..

Cualquier escritura 0 los documentos proporcionaron a una mayorfa de la City Council! RedevelopmentAgency con respecto a cualquier artfculo en este orden del dfa sera hecho disponible para la

inspecci6n publica en la reuni6n y en la of/Gina del City Clerk del City Hall, 520 J Street, Los Banos,California durante horas de of/Gina normales. Ademas, tales escrituras y los documentos

pueden ser anunciados en el website de la Ciudad en www.losbanos.ora.

* * * * * * * * *1. CALL TO ORDER. 7:00 PM

2. PLEDGE OF ALLEGIANCE.

3. ROLL CALL: (City Council and Redevelopment Agency Board Members)

Faria _, Sousa _, Stone _. Villalta _, Jones _

Los Banos City Council!Redevelopment Agency Agenda - December 17, 2008 Page 1 of 5

4. CONSIDERATION OF APPROVAL OF AGENDA.

5. PRESENTATIONS - Proclamation Recognizing Tesse Mazzina.

6. PUBLIC FORUM. (Members of the public may address the City Council /Redevelopment Agency Members on any item of public interest that is within thejurisdiction of the City Council/Redevelopment Agency; includes agenda and nonagenda items. No action will be taken on non-agenda items. Speakers are limitedto a five (5) minute presentation. Detailed guidelines are posted on the CouncilChamber informational table.)

7. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. (Items on theConsent·Agenda are considered to be routine and will be voted on in one motionunless removed from the Consent Agenda by a City Council/RedevelopmentAgency Member.)

A. Check Register for #113168 - #113343 in the Amount of $819,046.80.

Recommendation: Approve the check register as submitted.

B. Minutes for the December 1, 2008 Adjourned City Council/RedevelopmentAgency Meeting.

Recommendation: Approve the minutes as submitted.

C. Minutes for the December 3, 2008 City Council/Redevelopment AgencyMeeting.


D. Minutes for the December 9, 2008 Adjourned City Council/RedevelopmentAgency Meeting.


E. Public Works Capital Project Report for December 2008.

Recommendation: Accept the report as submitted.

F. City Council Resolution No. 5095 - Supporting Congressman DennisCardoza's Efforts to Reduce Fixed Mortgage Rates.

Recommendation: Adopt the resolution as submitted.

G. City Council Resolution No. 5096 - Approving Closure of Non-essential CityOffices on December 26,2008 and January 2,2009.


Los Banos City Council/Redevelopment Agency Agenda - December 17, 2008 Page 2 of 5

H. City Council Resolution No. 5097 - Authorizing Entering into a LeaseAgreement with Merced County for Office Space at 825 and 827 ColoradoAvenue for the Department of Mental Health.


I. City Council Resolution No. 5098 - Approving an Amendment to Division 5 ofthe City's Policy and Procedures Manual as it Pertains to Waiving City HealthCoverage.


J. City Council Resolution No. 5099 - To Tax Defer Member Paid Contributionas it Pertains to California Public Retirement System (CaIPERS).


K. City Council Resolution No. 5100 - For Employer Paid Member Contributionas it Pertains to California Public Retirement System (CaIPERS).


L. City Council Resolution No. 5101 - Authorizing the City Manager to Executean Assignment and Substitution Agreement and Amended and RestatedProfessional Services Agreement [Community Center Project].


M. Redevelopment Agency Resolution No. 2008-16 - Authorizing the ExecutiveDirector to Execute an Assignment and Substitution Agreement andAmended and Restated Professional Services Agreement [Community CenterProject].


8. PUBLIC HEARINGS. (If you challenge the proposed action as described herein incourt, you may be limited to raising only those issues you or someone else raisedat the public hearing described herein or in written correspondence delivered to theCity or Redevelopment Agency at, or prior to, the public hearing.)

A. Public Hearing - To Consider Application for Funding Under the Fiscal Year'sState Community Development Block Grant (CDBG) Program and to SolicitCitizen Input on Possible Activities to be Included in this Application.

1) City Council Resolution No. 5102 - Approving an Application andContract Execution for Funding From the Economic DevelopmentAllocation of the State Community Development Block Grant (CDBG)Program and Authorizing the Execution of a Grant Agreement and any


Amendments thereto with the State of California for the Purposes of thisGrant.

Recommendation: Receive staff report, open the public hearing, receive public comment andadopt the resolution as submitted.

B. Public Hearing - To Consider Application for Funding Under the Next FiscalYear's State Community Development Block Grant (CDBG) Program and toSolicit Citizen Input on Possible Activities to be Included in the Application.

Recommendation: Receive staff report, open the public hearing and receive public comment.

9. COMMISSION MEMBER APPOINTMENTS.

A. Airport Commission, One (1) Vacancy, Term Expires December 31,2009.

B. Culture & the Arts Commission, One (1) Vacancy, Term Expires December31,2010.

C. Parks & Recreation Commission, Two (2) Vacancies, Term ExpiresDecember 31 , 2010.

Recommendation: Appointments made by the Mayor with approval of the City Council.

10. REDEVELOPMENT AGENCY UPDATE.

11. ADVISEMENT OF PUBLIC NOTICES. (No Report)

12. CITY MANAGER / EXECUTIVE DIRECTOR REPORT.

13. CITY COUNCIL / REDEVELOPMENT AGENCY MEMBER REPORTS.

A. Mike Villalta

B. Tom Faria

C. Tommy Jones

D. Joe Sousa

E. Elizabeth Stone

14. MISCELLANEOUS INFORMATION IN CITY COUNCIL PACKET, NO ACTIONNECESSARY.


15. CLOSED SESSION.(Members of the public may address the City Council/Redevelopment Agency onthe following closed session items. Speakers are limited to a five (5) minutepresentation. Detailed guidelines are posted on the Council Chamberinformational table.)

A. Conference with Real Property Negotiators (Pursuant to Government CodeSection 54956.8); Property: 16570 S. Mercey springs Road, Los Banos, APN083-100,.036; Negotiator: Redevelopment Agency Director, ExecutiveDirector, Agency Attorney; Negotiating Parties: Merced College & Los BanosRedevelopment Agency; Under Negotiation: Purchase Price and Terms ofSale.

16. ADJOURNMENT.

I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing~~d~ was posted on the City Hall bulletin board not less than 72 hours prior to the meeting.

~C'R. -I.~Lucille L. Mallonee, City Clerk Dated this 12th day of December 2008


At the Crossroads ofCalifornia

PROOL..AMAnON

R-6COCjNIZ1NCjIT;SSfi IVt,4ZZINA,

1-0S "8ANOS PARI<SANPRfiCR-fiAnON COMMISS10NfiR

vvH6R6AS/ Tesse /VI{lzzinfiw{lS tlppointed 014 Dctober:Z~ i1Y.Y7 to the Fwr!e5 {lndReorMtion Camfu..[ssion by the /VIeroed county BO{lrdofsupervisors/ {Inti

WH-6R6AS/ Tesse /Yttlzzintl LOy{lLLy tlttenaeti reguLm< meetings of the Los (!,{lnosReoreation Cammiss?on/ {Ina

WH61C6AS/ Ttsse /VI{lzzin{l h{ls tievoted her time to the Los Banas Reore{lt£oncommIssion {Ind. oontinues to support/ the· gO{lLs {Ina vision of the Los Banos P{lr!e5 {lwiReoreation commissiOi/~/ {Inti

WH6R6AS/ Tesse/V/{lzzii/Va h{lsvoLunteered her time {It the p{lf'-je~ tlnd RioretltiopvDffloe {lndtosenir;r Progr{lms {IS weLL/ {Inti

WH6R6AS/ Ttsse/V/{iz:z;ii4tl has {lttendedthe P{ir!e5 {Inti Retre{ltianAnnU{l{ArborD{I/j ceLebration for m{lnYYC{lrs/ {Inti

VYH-ER6AS/ T~sst i!V1{1zzipv{lwiLL resign her pos(t(on Of Los BtlnOS P{lrks {IntiReorecitiofi Commissioneron Deoember31/200&/ {Inti

, " .

NO~. TH-6fG$FqR~i156 IT PRDCLAI/VIl7Dth{it .the/VI{l!10rtlnti c£ty.CaunoiL/VIemberso{the city/ofLosiB{l10S tio hereby reotpgn(:z;e {lpvd oommend Tesse /VI{lzzin{l for herrJedio{lted service {IS a memberofthe Los lS{inos P{lr!e5{1nci ReorC{lt£on commission.

In witness whereof; /havehereunto set my h{lnd{lndcaused fobe{lffl;<ed these{lL afthe city afLoslS{lI4OS/ this :trhr;l{lY ofDeoember:zoo&.

APPROVED;

ATT6ST:

LuciLLe L. /VI{lLLonee/ city CLerk

CK #113168 - # 113343 12/17/08 $819,046.80Bank Reconciliation

LOS BanosChecks By Date

12/09/2008· 4:50 PM

User: rsouto

Cleared and Not Cleared Checks

Check No Check Date Name Comment ModuleVoid Clear Date Amount

113168 11/26/2008 Law Offices of William A Vaugh AP 14,347.50113169 11/26/2008 Synthesis Design Group AP 9,600.00113170 11/2612008 Ronny's Landscaping AP 60,544.00113171 11/26/2008 RBF Consulting AP 5,555.90113172 11/26/2008 PERS • Public Employees AP 116,200.83113173 11/26/2008 Gerald "Obie" O'Brien AP 77.14113174 11/26/2008 Carol Moore AP 79.25113175 11/2612008 Merced County Association AP 7,419.63113176 11/26/2008 Mcelvany Inc AP 200.00113177 11/26/2008 Lowe's AP 402.66113178 11/26/2008 Los Banos Unified School AP 729.47113179 11/26/2008 Los Banos Volunteer AP 3,166.67113180 11/2612008 Los Banos Chamber Of AP 3,054.17113181 11/26/2008 Larry Leonardo AP 46.02113182 11/2612008 Mary Kaljian AP 200.00113183 11/26/2008 Johnny Macs Electric Co AP 11,958.00113184 11/26/2008 Irly-Bird Landscape Inc AP 200.00113185 11/26/2008 DarraH Gargano AP 263.04113186 11126/2008 Golden State Flow AP 81,102.23113187 11/26/2008 Ford Motor Credit AP 5,274.95113188 11/26/2008 Manual Tom Faria AP 149.29113189 11/26/2008 Employment Developmt Dept AP 7,688.00113190 11/26/2008 City ofLos Banos ** AP 70.50113191 1112612008 City of Los Banos ** AP 70.50113192 11/26/2008 City ofLos Banos ** AP 423.00113193 11/26/2008 City ofLos Banos ** AP 282.00113194 11/26/2008 City ofLos Banos ** AP 211.50113195 11/26/2008 City ofLos Banos ** AP 282.00113196 11/26/2008 City of Los Banos ** AP 211.50113197 11/26/2008 City ofLos Banos ** AP 141.00113198 11/26/2008 City ofLos Banos ** AP 141.00113199 11/26/2008 County Bank - Cafeteria Plan AP 3,668.13113200 11/26/2008 County Bank - Cafeteria Plan AP 209,557.94113201 11/26/2008 County Bank • Cafeteria Plan AP 24,359.90113202 11/26/2008 County Bank AP 888.24113203 11/26/2008 Comcast AP 104.70113204 11/26/2008 BSK AP 11,002.29113205 11/26/2008 Best Best & Krieger AP 8,855.35113206 11/26/2008 Bacigalupi, Neufeld & Rowley AP 4,506.75113207 11/26/2008 AT&T Long Distance AP 245.49113209 11/26/2008 Aramark Uniform Ser Inc AP 716.54113210 11/26/2008 AT&T/MCI AP 170.22113211 11/2612008 AT&T Mobility AP 96.27113212 11/26/2008 Bank ofAmerica AP 189.48113213 11/26/2008 Bank ofAmerica AP 9.91113214 11/26/2008 Bank ofAmerica AP 16.15113215 11/26/2008 Bank ofNew York AP 2,846.12113216 11/2612008 Bay City Tow AP 345.00113217 11/2612008 Bear Cat Mfg Inc AP 2,303.19113218 11/26/2008 Bruce's Tire Inc AP 922.82

BR - Checks by Date (12/09/2008. 4:50 PM) Page


113219 11/26/2008 Cartegraph Systems, Inc. AP 375.00113220 11/26/2008 Carquest Auto Parts AP 58.78113221 11/26/2008 Comcast AP 99.95113222 11/2612008 Copware Inc AP 461.00113223 11/26/2008 CSKProshop AP 1,530.60113224 ll/26/2008 LN Curtis & Sons AP 265.98113225 11/26/2008 Dakota Pump Inc AP 64.31113226 11/26/2008 Dept of Transportation AP 1,572.71113227 11/26/2008 Fastenal Company AP llQ.63113228 11/26/2008 Feeney Wireless AP 3,414.05113229 11/26/2008 Ferrara Fire Appartus Inc AP 758.35113230 11/26/2008 Hach Company AP 123.91113231 11/26/2008 Haines & Company Inc AP 396.24113232 11/26/2008 Holt Bros AP 845.93113233 11/26/2008 Juno Electric Inc. AP 580.00113234 11/26/2008 Just Test It AP 3,800.00113235 11/26/2008 Los Banos Paint Co. Inc. AP 185.88113236 11126/2008 Los Banos Truck & Trailer AP 260.28113237 ll/26/2008 Marfablnc AP 106.32113238 11126/2008 Merced CountyAssociation AP 6,840.12113239 11/26/2008 Merced County Health Dept AP 69.00113240 ll/26/2008 National Container Sales, LLC AP 3,267.00113241 11/26/2008 Nextel Communications AP 676.87113242 11126/2008 The Office City AP 283.22113243 11/26/2008 OSE AP 21.12113244 11/26/2008 Omega Industrial Supply AP 502.40113245 11/26/2008 Pachetts Ford Mercury AP 564.00113246 11/26/2008 Parreira's Performance AP 59.65113247 11126/2008 Pepper's Auto Parts Inc AP 33.98113248 ll/26/2008 Praxair Distribution Inc AP 3,764.48113249 ll/26/2008 Quality Towing, Inc. AP 165.00113250 11/26/2008 Radio Shack Accounts Rec AP 53.85113251 11/26/2008 Rodco Building Maintenance AP 200.00113252 11/26/2008 Ronny's Landscaping AP 850.00113253 11/26/2008 Save Mart Supermarkets AP 260.47113254 11/26/2008 Schaeffer MFG Co. AP 1,916.37113255 11/26/2008 Schoettler Tire Inc AP 711.34113256 11/26/2008 Sherwin Williams Co AP 614.45113257 11126/2008 Sierra Chemical Co AP 1,363.38113258 11/26/2008 Sign Solutions AP 36.10113259 11/2612008 Soares Lumber & Fence Inc AP 47.41113260 11/26/2008 Sol's Mobile Service AP 861.25113261 11/26/2008 Sorensens True Value AP 1,658.84113262 11/26/2008 Specialty Distributors, Inc. AP 241.25113263 11126/2008 Staples Credit Plan AP 95.72113264 11/26/2008 Stradling Yocca Carlson & AP 2,059.75113265 11/26/2008 Thorworks Industries AP 2,135.86113266 11/26/2008 USA Blue Book AP 102.08113267 11/26/2008 Walmart Community AP 281.60113268 11126/2008 Westside Water Conditioni AP 13.21113269 11/26/2008 Windecker Inc AP 12,339.78113270 11126/2008 Ameripride Valley Uniform AP 416.33113313 12/04/2008 Aflac·Customer Service AP 239.45113314 12/04/2008 Aflac·Customer Service AP 293.10113315 12/04/2008 Aflac·Customer Service AP 86.10113316 12/04/2008 Aflac·Customer Service AP 159.42113317 12/04/2008 Bank ofAmerica AP 113,989.57113318 12/04/2008 Bank ofAmerica AP 2,272.32113319 12/04/2008 Bank ofAmerica AP 16,763.87113320 12/04/2008 Hartford Life Ins Co AP 8,418.49113321 12/04/2008 Internal Revenue Service AP 784.41113322 12/04/2008 Los B.anos Police Assn AP 1,230.50

BR - Checks by Date (12/09/2008 - 4:50 PM) Page 2


113323 12/04/2008 Merced County Sheriff AP 100.00113324 12/0412008 MetUfe AP 851.22113325 12/04/2008 Nationwide Retiremt Solut AP 1,795.00113326 12/0412008 PERS Long Term Care AP 362.64113327 12/04/2008 Professional Fire Fighter AP 375.00113328 12/04/2008 State Disbursement Unit AP 168.00113329 12/04/2008 State Disbursement Unit AP 700.00113330 12/04/2008 State Disbursement Unit AP 64.00113331 12/04/2008 State Disbursement Unit AP 313.50113332 12/04/2008 State Disbursement Unit AP 50.96113333 12/04/2008 State Disbursement Unit AP 197.00113334 12/04/2008 State Disbursement Unit AP 174.00113335 12/0412008 State Disbursement Unit AP 212.00113336 12/04/2008 State Disbursement Unit AP 214.50113337 12/04/2008 State Disbursement Unit AP 208.50113338 12/04/2008 State Disbursement Unit AP 502.50113339 12/04/2008 Freitas Fresh Eggs AP 42.00113340 12/04/2008 Food 4 Less AP 400.00113341 12/04/2008 Royal Chemical AP 3,997.25113342 12/0912008 Madera Carports, Inc. AP 2,214.26113343 12/09/2008 Scelzi Enterprises, Inc. AP 3,455.20

Total for Valid Checks: 819,046.80

Break in Check Sequence due to the followingCheck # 113271 - # 113312 (Payroll Checks)Check # 113208 (Voided)

BR - Checks by Date (12/09/2008 - 4:50 PM)

Total Valid Checks:Total Void Checks:

Total Checks:

Page

133o

133

3

CITY OF LOS BANOSADJOURNED CITY COUNCIL I REDEVELOPMENT AGENCY MEETING MINUTES

DECEMBER 1, 2008

ACTION MINUTES - These minutes are prepared to depict actiontaken for agenda items presented to the City Council. For greaterdetail of this meeting refer to the electronic media (CD and/or audio)kept as a permanent record.

CALL TO ORDER: Mayor Jones called the City Council/Redevelopment AgencyMeeting to order at the hour of 4:07 p.m.

PLEDGE OF ALLEGIANCE. Mayor Jones led the pledge of allegiance.

ROLL CALL - MEMBERS OF THE CITY COUNCIL I REDEVELOPMENT AGENCYPRESENT: Tom Faria (arrived at 4:30 p.m.), Mike Villalta, and Tommy Jones;ABSENT: Anna Brooks and Joe Sousa.

PLANNING COMMISSIONERS PRESENT: Stephen Hammond, Norm Donovan, JoseManzo, Tom Mello, Shirley Napolitano, and Erasmo Viveros; ABSENT: Ann McCauley.

STAFF MEMBERS PRESENT: City Manager Rath, Interim Public Works Director/CityEngineer Fachin, Planning Director Fitzgerald, Chief Financial Officer/City TreasurerWall, Redevelopment Director Post, Administrative Clerk IIDeputy City Clerk Ascencio,Administrative Assistant Fuentes, and Administrative Clerk I O'Bannon.

CONSIDERATION OF APPROVAL OF AGENDA: Motion by Jones, seconded byVillalta to approve the agenda as submitted. The motion carried by the affirmativeaction of all City Council/ Redevelopment Agency Members present; Brooks, Faria andSousa absent.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE COUNCIL ONANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THECITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BETAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5}MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THECOUNCIL CHAMBER INFORMATIONAL TABLE. Mayor Jones opened the publicforum. No one came forward to speak and the public forum was closed.

RAIL TRAIL CORRIDOR REGULATING CODE WORKSHOP. Redevelopment AgencyDirector Post introduced Jason Jones of RBF Consulting who facilitated the workshop.

Informational item only, no action taken.

ADJOURNMENT. The meeting was adjourned at the hour of 4:54 p.m. by theaffirmative action of all City Council / Redevelopment Agency Members present; Brooksand Sousa absent.

APPROVED:

Tommy Jones, Mayor

ATIEST:

Sandra Ascencio, Deputy City Clerk

CITY OF LOS BANOSCITY COUNCIL I REDEVELOPMENT AGENCY MEETING MINUTES

DECEMBER 3, 2008

ACTION MINUTES - These minutes are prepared to depict actiontaken for agenda items presented to the City Council. For greaterdetail of this meeting refer to the electronic media (video, DVDand/or audiotapes) kept as a permanent record.

CALL TO ORDER: Mayor Jones called the City Council/Redevelopment AgencyMeeting to order at the hour of 7:01 p.m.·

PLEDGE OF ALLEGIANCE. Police Commander Fitchie led the pledge of allegiance.

ROLL CALL - MEMBERS OF THE CITY COUNCIL I REDEVELOPMENT AGENCYPRESENT: Anna Brooks, Tom Faria, Joe Sousa, Mike Villalta, and Tommy Jones

STAFF MEMBERS PRESENT: City Attorney Vaughn, Administrative Clerk I/DeputyCity Clerk Ascencio, City Manager Rath, Fire Chief Guintini, Police Commander Fitchie,Interim Public Works Director/City Engineer Fachin, Planning Director Fitzgerald,Redevelopment Director Post, Chief Financial Officer/City Treasurer Wall, andInformation Technology Director Spalding.

CONSIDERATION OF APPROVAL OF AGENDA: Motion by Faria, seconded byBrooks to approve the agenda as submitted. The motion carried by the affirmativeaction of all City Council/Redevelopment Agency Members present.

CONSIDERATION OF CONSIDERATION OF CERTIFICATION OF VOTE OFMUNICIPAL ELECTION, NOVEMBER 4, 2008; CITY COUNCIL RESOLUTION NO.5091 - CERTIFYING THE CANVASSING OF VOTES IN THE NOVEMBER 2008GENERAL MUNICIPAL ELECTION: Motion by Brooks, seconded by Villalta to adoptthe resolution as submitted. The motion carried by the affirmative action of all CityCouncil/Redevelopment Agency Members present.

ADMINISTRATION OF OATH OF OFFICE TO ELECTED OFFICIALS: Deputy CityClerk Ascencio administered Oaths of Office to Mayor Tommy Jones, Council MemberJoe Sousa, and Council Member Elizabeth Stone.

ROLL CALL - MEMBERS OF THE CITY COUNCIL I REDEVELOPMENT AGENCYPRESENT: Tom Faria, Joe Sousa, Elizabeth Stone, Mike Villalta, and Tommy Jones

REORGANIZATION OF CITY COUNCIL - SELECTION OF MAYOR PRO TEM:Council Member Stone motioned to nominate Council Member Sousa as Mayor ProTern and spoke of Council Member Sousa's experience with City budgets and theabnormal economic times the City is facing.

Council Member VillaIta motioned to nominate Council Member Faria as Mayor ProTem.

Council Member Faria motioned to nominate Council Member Villalta as Mayor ProTem and spoke of Council Member Villalta's experience with budgets in schooladministration.

Mayor Jones spoke of Council Member Sousa's talent and skills regarding the term heserved as Mayor Pro Tem and of the important nature of this position.

Motion by Stone, seconded by Faria to close the Mayor Pro Tem nominations. Themotion carried by the affirmative action of all City Council/Redevelopment AgencyMembers present.

Motion by Stone to nominate Council Member Sousa as Mayor Pro Tem. The motioncarried by the following roll call vote: AYES: Jones, Sousa, Stone; NOES: Faria, Villalta;ABSENT: None.

RESOLUTION OF COMMENDATION TO OUTGOING COUNCIL MEMBER; CITYCOUNCIL RESOLUTION NO. 5092 - A RESOLUTION OF COMMENDATION TOANNA BALATTI BROOKS: Motion by Sousa, seconded by Stone to adopt theresolution as submitted. The motion carried by the affirmative action of all CityCouncil/Redevelopment Agency Members present.

Mayor Jones presented the framed resolution to Anna Balatti Brooks.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE COUNCIL ONANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THECITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BETAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5)MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THECOUNCIL CHAMBER INFORMATIONAL TABLE. GENEVIEVE GRIJALVA, LosBanos, spoke of changes that the City will be making including fees, asked if otherorganizations will be charged the same fees, encouraged the City Council to take a lookat who is involved in the PAL program, PAL is teaching not just softball but life lessons;MARCI FAYE, Los Banos, spoke of the impact the City changes will have on the PALsoftball program, asked the City to re-consider charging these fees to the program; ELYFLORES, Los Banos, spoke of the impact the PAL program has on the youth in thecommunity and asked the City to not let this happen; MIGUEL RUIZ, Los Banos, spokeof fighting for legal rights and discrimination, wants the Police Department to putsomething in the newspaper to calm down the community, the District Attorney'sattitude towards him and his son, had asked Supervisor O'Banion to remove the DistrictAttorney from office, and had followed Mark Knapp in his vehicle to find out information;CARYN COX, Los Banos, spoke of hearsay regarding Police Department employeecuts and public finance committees, asked the City Council to allow Cox and DianaIngram to be on a committee; City Manager Rath spoke to Caryn Cox regarding the

citizen group list and will schedule a meeting between December 11, 2008 andDecember 23,2008; NORM DONOVAN, Los Banos, spoke of Anna Brooks' service asa council member and congratulated Council Member Stone on her election into office;RON DYBAS, Los Banos, congratulated the new council and spoke regarding PAL as aperson who sits of the board, wants the City to use parody when raising fees, raise feeson everyone not just the youth, spoke of the need to take care of the kids in thecommunity; DIANA INGRAM, Los Banos, congratulated the new City Council, spoke ofa committee and the emergency meeting, how the bypass and community center werethe main talk instead of the City budget during the election season, this is the time thatwe need to work together and pull together and be creative and put aside any attitudesof frustration, offered her commitment to help the community; CHUCK MARTIN, LosBanos, spoke of the Kiwanis Club's annual Christmas Eve dinner at the fire house onDecember 24, 2008 from 11 :00 a.m. to 2:00 p.m. and deliveries as well between 9:00a.m. and 10:00 a.m., served 500 meals last year, have people donate and lookingforward to another large turnout this year, Santa will be there between 12:00 p.m. and1:00 p.m.; NIKKI TUFT, Los Banos and Western Recycling, informed everyone aboutan event for business owners and residents that gives a chance to give back tocommunity, Santa will be at their facility on December 12, 2008, will be a canned foodand toy drive to benefit Los Banos Rescue Mission and other local charities, onDecember 13, 2008 8:00 a.m. to 10:00 a.m. bring pets to take pictures with Santa andall of the money donated will go to the Los Banos Animal Shelter; Santa Claus and hiselves along with Paul Cardoza and Megan Goin of the City of Los Banos Public WorksDepartment Recreation Division, invited the community to the annual Breakfast withSanta on December 6, 2008 from 8:00 a.m. to 10:00 a.m. at Fire Station No.1, the costis $6 for pre-sale tickets at the Miller and Lux building and $8 at the door, Santa willarrive at 7:50 a.m. sharp, welcomed volunteers to call her, Santa congratulated thecouncil and invited everyone to Breakfast with Santa and the elves passed out candycanes to everyone in the Council Chambers.

Council Member Stone publicly thanked the supporters of her campaigning includingher family, friends, and those she didn't personally know.

Council Member Sousa thanked his wife, family, friends, and the people who he metwhile campaigning, said he is here to represent the whole community.

Mayor Jones thanked the community, his family, his mother Margaret Sliger, his wife,said we are facing difficult economic times and we will survive these hard times, wemust change the tone and we are the leadership, the need to work towards inclusionnot exclusion, it is the entire City Council's responsibility to work towards this goal andvision to bring businesses and jobs to the community, asked for everyone's help andcooperation.

CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Sousa,seconded by Faria to approve the consent agenda as follows: Check Register for#112812 - #113166 in the Amount of $1,390,324.28; Minutes for the November 5,2008City Council I Redevelopment Agency Meeting; Minutes for the November 19, 2008 City

Council / Redevelopment Agency Meeting; City Council Resolution No. 5093 Reducing the Performance Bond and the Labor Materials Bond Amounts for the VillageGreen Subdivision (Ranchwood Contractors, Inc.); City Council Resolution No. 5094 Adopting Amendment to the City of Los Banos Deferred Compensation Plan;Redevelopment Agency Resolution No. 2008-15 - Approving the Application for GrantFunds from the Bicycle Transportation Account (BTA) and Approve Funding from theRedevelopment Agency as a Portion of the Local Agency Grant Match. The motioncarried by the affirmative action of all City Council/Redevelopment Agency Memberspresent.

CONSIDERATION OF APPOINTMENT(S) TO THE ONE VOICE COMMITTEE.Redevelopment Agency Director Post spoke of the committee's purpose and remindedthe City Council that we previously had Council Members Villalta and Sousa on thecommittee and is now asking for direction from the City Council for appointment(s).

Motion by Jones, seconded by Stone to appoint Council Member Sousa to the OneVoice Committee for State issues and to appoint Mayor Jones to the One VoiceCommittee for Federal issues. The motion carried by the affirmative action of all CityCouncil/Redevelopment Agency Members present.

CONSIDERATION OF APPOINTMENT TO THE ECONOMIC DEVELOPMENTCOMMITTEE.Motion by Jones, seconded by Faria to appoint Council Members Stone and Faria tothe Economic Development Committee. The motion carried by the affirmative action ofall City Council/Redevelopment Agency Members present.

CONSIDERATION OF APPOINTMENT TO THE MERCED COUNTY ECONOMICDEVELOPMENT CORPORATION (MCEDCO) BOARD. Redevelopment AgencyDirector Post explained the purpose of the board and asked for direction from the CityCouncil.

Motion by Jones, seconded by Villalta to appoint Council Member Sousa to the MercedCounty Economic Development Corporation (MCEDCO) Board. The motion carried bythe affirmative action of all City Council/Redevelopment Agency Members present.

CONSIDERATION OF APPOINTMENT OF ONE (1) COUNCIL MEMBER TO SERVEWITH THE MAYOR ON AN AD HOC COMMITTEE TO FILL THE VACANCIES ONTHE AIPORT COMMISSION (1), CULTURE AND THE ARTS COMMISSION (1), ANDPARKS & RECREATION COMMISSION (2).

Motion by Jones, seconded by Sousa to appoint Stone to serve with the Mayor on anad hoc committee to fill the vacancies on the Airport, Culture and the Arts, and Parks &Recreation Commissions. The motion carried by the affirmative action of all CityCouncil/Redevelopment Agency Members present.

CONSIDERATION TO DEFER THE CITY MANAGER'S ANNUAL SALARY REVIEWAND ADJUSTMENT FOR 2008 AND REQUEST FROM THE CITY MANAGER FOR

HIM TO BEGIN PAYING HIS EMPLOYEE SHARE OF THE CALIFORNIA PUBLICEMPLOYEES RETIREMENT SYSTEM (CALPERS) RETIREMENT BENEFITCONTRIBUTION.City Manager Rath spoke of the financial condition the City is facing, and not just ourCity, but State and Country, the reduction in property tax revenue, the significant gainafter making cuts and the need to make more, need to reduce expenses, asked to deferhis salary review and asked to pay his own CalPERS contribution.

Mayor Jones thanked City Manager Rath and said leadership sets the example to makesacrifices.

Council Member Stone agreed that is very honorable of City Manager Rath and is atestament of his character.

Motion by Stone, seconded by Faria to defer the City Manager's annual salary reviewand adjustment for 2008 and allow him to begin paying his employee share of theCalifornia Public Employees Retirement System (CaIPERS) Retirement BenefitContribution. The motion carried by the affirmative action of all CityCouncil/Redevelopment Agency Members present.

REDEVELOPMENT AGENCY UPDATE. Redevelopment Agency Director Post spokeregarding the Neighborhood Stabilization Program and working with MCAG and hopesthe application will be available this January; trying to mirror First Time Home Buyersprogram; closing the Microenterprise loan and will start applying for a business loan;announced two vacancies in the business incubators and asked for people who areinterested to contact City Hall; businesses are still looking at coming to our community;going to really miss Anna Brooks on the City Council and welcomed Council MemberStone and congratulated Mayor Jones and Council Member Sousa.

ADVISEMENT OF PUBLIC NOTICES (FOUR REPORTS). Planning Director Fitzgeraldadvised of the notices, all of which will take place on December 10,2008 and include ause permit for a large family daycare facility, revisions to an Operational Statement ofuse permit for Savoy Restaurant, use permit for alcohol license for Cecilia's Deli andMarket, and revisions to the Final Development Plan for KB Homes Meadowlands III.

CITY MANAGER I EXECUTIVE DIRECTOR REPORT. Announced that there will be abudget workshop at on December 16,2008 at 5:30 and invited the community to attend;staff will contact community members that are interested in the citizen group meetingthat will be scheduled on December 18th

, 22nd or 23rd at 6:30 p.m.

CITY COUNCIL I REDEVELOPMENT AGENCY MEMBER REPORTS.

ELIZABETH STONE: Thanked Anna Brooks and is grateful for her to set an examplefor young· people in the community and has big shoes to fill; thanked the FireDepartment for their Christmas dinner and the slideshow of firefighters in action andservice to community; thanked Planning Commissioners for their work on the rail

corridor and the workshop; reminded the community that the Christmas parade will beFriday evening at 6:00 p.m., and Saturday will be Breakfast with Santa and will be therecracking eggs at 6:30 a.m.

MIKE VILLALTA: Thanked Anna Brooks and told her to get her Masters degree; inregards to the PAL program, we campaign for youth and we need to honor ourcampaign promises and youth is number one and pledged support to that; number ofbreak-ins is huge and public safety is his priority; hoping to meet these obligations.

TOM FARIA: Will miss Anna Brooks and thinks we will see her around a lot;congratulated Council Member Stone; the City is facing tough times, be open mindedabout planning finances; Handles' Messiah production will be Wednesday night at LosBanos High School with $6 general admission and $3 for students charges; remindedthe community about Friday night's Christmas parade, the Los Banos High School choirand band will perform right after the parade at the Henry Miller Plaza; thanked the FireDepartment for the dinner; reminded everyone about Breakfast with Santa onDecember 6, 2008; and asked that everyone be lighthearted with positive attitudestowards these hard economic times.

TOMMY JONES: Reiterated the very tough times ahead and would like open meetingsabout finances; asked people to step up and do more and make sacrifices; this is aglobal problem; the economic crisis didn't start in Los Banos, its everywhere; spoke ofmovie Cinderella Man that inspires the building of character, we will come out a bettercommunity in the end.

JOE SOUSA: Reminded everyone that December 7, 2008 is Pearl Harbor Day and theveterans will put out flags that day; Christmas parade at 6:00 p.m. on December 5,2008; thanked Anna Brooks for her help and encouragement and she brought a newperspective; congratulated Council Member Stone for her accomplishment; will not beeasy to handle this budget, sacrifices need to be made and will do everything we can tosupport youth and communities; a woman passed away in an accident recently and leftbehind 6 kids and encouraged community to reach out to this family with help thisseason; running a campaign takes hard work and you are subject to criticism, now needto get together and stop snickering and belittling each other; asking for support fromentire community.

Supervisor O'Banion spoke regarding the economic crisis and reiterated that all localgovernments and special districts are going through the same circumstances; thesimilar economic scenario in 1992; hopefully the state will throw out ideas that will beless of an impact on local government; the government is now admitting we are in arecession and have been in for about a year; and compared the economy to cycles likea Los Banos Tigers vs. Dos Palos Broncos football game.

CLOSED SESSION CONFERENCE WITH PROPERTY NEGOTIATORS(PURSUANT TO GOVERNMENT CODE SECTION 54956.8); PROPERTY: APORTION OF 760-860 H STREET. LOS BANOS. APN 025-114-009; NEGOTIATOR:

REDEVELOPMENT AGENCY DIRECTOR, EXECUTIVE DIRECTOR, AGENCYATTORNEY; NEGOTIATING PARTIES: ALI FARSAD AND TOOBA FARSAD & LOSBANOS REDEVELOPMENT AGENCY; UNDER NEGOTIATION: PURCHASE PRICEAND TERMS OF SALE.The motion to not pursue the purchase of the aforementioned property carried by thefollowing roll call vote: AYES: Faria, Sousa, Stone, Villalta, Jones; NOES: None;ABSENT: None.

CLOSED SESSION - CONFERENCE WITH REAL PROPERTY NEGOTIATORS(PURSUANT TO GOVERNMENT CODE SECTION 54956.8); .PROPERTY: 500 HSTREET, LOS BANOS, APN 025-072-037; NEGOTIATOR: REDEVELOPMENTAGENCY DIRECTOR, EXECUTIVE DIRECTOR, AGENCY ATTORNEY;NEGOTIATING PARTIES: JOANNE N TR THOMPSON; UNDER NEGOTIATION:PURCHASE PRICE AND TERMS OF SALE.The motion to not pursue the purchase of the aforementioned property carried by thefollowing roll call vote: AYES: Faria, Sousa, Stone, Villalta, Jones; NOES: None;ABSENT: None.

ADJOURNMENT. The meeting was adjourned at the hour of 8:36 p.m. to 6:00 p.m.,Tuesday, December 9, 2008 to attend a training session - Ethics in Public Service,presented by Gage Dungy of Liebert Cassidy Whitmore, as mandated by AB 1234,being held in the Council Chambers, 520 J Street, Los Banos, California.

APPROVED:

Tommy Jones, Mayor

ATTEST:

Sandra B. Ascencio, Deputy City Clerk

CITY OF LOS BANOSADJOURNED CITY COUNCIL I REDEVELOPMENT AGENCY MEETING MINUTES

DECEMBER 9, 2008

ACTION MINUTES - These minutes are prepared to depict actiontaken for agenda items presented to the City Council. For greaterdetail of this meeting refer to the electronic media (CD and/or audio)kept as a permanent record.

CALL TO ORDER: Mayor Jones called the City Council / Redevelopment AgencyMeeting to order at the hour of 6:05 p.m.

PLEDGE OF ALLEGIANCE. The pledge of allegiance was recited.

ROLL CALL - MEMBERS OF THE CITY COUNCIL I REDEVELOPMENT AGENCYPRESENT: Joe Sousa, Elizabeth Stone, Mike Villalta, and Tommy Jones; ABSENT:Tom Faria.

COMMISSIONERS PRESENT: Mona Giuliani, Stephen Hammond, Jose Manzo, AnnMcCauley, Shirley Napolitano, Michael Neu, Rebecca Palmer, and Erasmo Viveros.

STAFF MEMBERS PRESENT: City Manager Rath and Chief Financial Officer/CityTreasurer Wall.

CONSIDERATION OF APPROVAL OF AGENDA: The agenda was approved by theaffirmative action of all City Council/ Redevelopment Agency Members present; Fariaabsent.

PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE COUNCIL ONANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THECITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BETAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5)MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THECOUNCIL CHAMBER INFORMATIONAL TABLE. Mayor Jones opened the publicforum. No one came forward to speak and the public forum was closed.

TRAINING SESSION: ETHICS IN PUBLIC SERVICE - PRESENTED BY GAGEDUNGY, LIEBERT CASSIDY WHITMORE, AS MANDATED BY AS 1234.Informational item only, no action taken.

ADJOURNMENT. The meeting was adjourned at the hour of 8:22 p.m. to 5:30 p.m.,Tuesday, December 16, 2008 to attend a Budget Workshop, being held in the CouncilChambers, 520 J Street, Los Banos, California by the affirmative action of all CityCouncil/ Redevelopment Agency Members present; Faria absent.

ATTEST:

Lucy Mallonee, City Clerk

APPROVED:

Tommy Jones, Mayor

LQsBanosAi t1u~ Crossroads of CilU{ontia

.~.' .~-

TO:

FROM:

DATE:

Agenda Staff Report

Honorable Mayor & City Council Members

Mark Fachin, P.E., Interim Public Works Director/City Engineeri~~.December 17, 2008

SUBJECT: Public Works Capital Project Report for December 2008

TYPE OF REPORT: Consent Agenda

Recommendation:Staff has prepared this informational item for Council review and to receive comments.There is no council action regarding this informational item.

Background:Attached is the Public Works Department's Capital Project Report for December. Thisreport provides the public and the City Council with information regarding the Capitalprojects administered by the Public Works Department.

Discussion:The report describes the current status of the various contracted Capital projectsadministered by the Public Works Department. The information includes status ofproject completion, contract amounts, and various change orders approved as part ofthe construction process.

Reviewed by:

sif~ Manager

Attachments:Public Works Capital Project Report

LOS BanosAt the Crossroads of California

PUBLIC WORKS DEPARTMENTDECEMBER 2008 CAPITAL PROJECT

REPORT

DOWNTOWN IMPROVEMENTS

LOS BANOS COMMUNITY CENTER

PAGE/SCRIPPS ROAD EXTENSION

740 SECOND STREET SITE REMEDIATION

WIRELESS WATER METER READ SYSTEM

LOS BANOS TRANSPO CENTER

PLACE ROAD EXTENSION

TALBOTT PARK BASIN AND STORM DRAIN

SALINITY STUDY

DECEMBER 2008 CAPITAL PROJECTREPORT

CONTINUED

GROUND WATER STUDY

PRE-TREATMENT SYSTEM STUDY

WASTEWATER TREATMENT PLANTHEADWORKS DESIGN

SANITARY SEWER, STORM, AND WATERIMPACT FEE STUDY

SANITARY SEWER AND WATERRATE STUDY

Public Works Department

Capital Improvements

Project Progress

DECEMBER 2008Downtown Improvements Public Works Staff

Construction Status 2008- 09 Budget Additional Information

Ongoing Budgeted Funds (RDA) $250,000.00 Expenditures for the month of November and the first weekin December are expected to deplete the remaining

Expended $203,449.00 appropriations of the 2008-09 budget.Improvements to the North sideof I Street completed. Balance $46,551.00 Funds to complete the remaining 300 feet of the 500 blockCrew installing pavers and conduit of I Street is estimated to be $182,000.on south side of I Street from 6thStreet west to 5th Street Funds to complete the south side of 600 block of I Street

is estimated to be $250,000.

Beverly Prior Architects Inc.Community Center-Construction Status 2008- 09 Budget Additional Information

Draft construction schedule Design/Construction $12,500,000.00 Under grounding of onsite overhead lines has begun.generated. To be completed by mid October.

Expended $616,051.38Final Design is ongoing. Pre Construction Contractor's work is complete.

Balance $11,883,948.62Construction Drawings are being prepared for April 2009bid opening.



Project Progress

DECEMBER 2008

Page/Scripps Extension Design Boyle Engineering

Construction Status 2008- 09 Budget Additional InformationTopography and Draft Alignment completed.

Professional Services Agreement Budget $75,000.00 Plan sent to Caltrans for Intergovernmental Review.finalized for design of Caltrans requires intersection traffic study to determine theimprovements. Expended $19,000.00 warrant of a traffic signal.

Staff has received traffic stUdy outline from Caltrans.Boyle Engineering developing Balance $56,000.00 Staff authorized Prism to generate traffic warrant study.land acquisition map to provide Right of Way needs are being identifieddetailed information for needed Prior to construction right of way needs to be acquired.area to be acquired. Design and construction to be paid by

Developer Traffic Impact Fees.

Environmental Remediation Group740 Second Street Site Cleanup. .Construction Status 2008- 09 Budge! Additional Information

Site Corrective Action Plan (CAP) Contract Price (RDA) $90,199.00 Scope of Contractor Work includes generation of a site worksubmitted to Oversight Agencies plan, explore and recommend remediation techniques.for review. Augmentation $64,679.00 Application for Underground Service Tank Funds (USTF)Once is approved staff will prepare completed and sent to the Regional Board for approval.an RFP for bid proposals to Total Contract $154,878.00 Contractor has delineated extent of area of contamination.implement the CAP. Monitoring wells installed and work plan is completed.

Expended $116,000.00 Awaiting approval of Corrective Action Plan.

Balance $38,878.00

Public Works DepartmentCapital Improvements

Project Progress

DECEMBER 2008

Wireless Water Meter Read System Public Works Staff


The Public Works Department intends to installSystem reading hardware is BUdgeted Funds $500,000.00 approximately 3300 endpoints to system by June 30, 2009.installed.

Expended $222,000.00

Crews Have installed over 1550 Utility Division is installing the endpoints.endpoints to the meter system.

Balance $278,000.00 Radio read system is functioning efficiently and is workingin harmony with the financial billing system.

Los Banos Transpo Center Public Works Staff

Construction Status 2008- 09 Budget Additional InformationRequest for Proposal scope includes Pre-Engineering and

Received Grant for Pre-Engineering. Grant Funding $100,000.00 Needs Assessment.Public Works To GenerateRequest for Proposals City Match Cost $13,000.00 Caltrans Local Assistance Agency to oversee project.

Waiting for Caltrans clearance to Expended $10,500.00release RFP.

Balance $102,500.00

<,



Project Progress

DECEMBER 2008

Place Road Extension TBD


Place Road Extension will extend to San Luis Street.Design of street improvements Design and construction to be paid by Design includes associated underground utilities.on hold. Site developer dropped Developer Traffic Impact Fees. Once constructed the improvements will be subject tothe project. reimbursement from adjacent lands when developed.Cannon Associates initiated design.

Staff intends to reopen as a City project and will needto secure right of way from the property owner.

Talbott Park Basin and Storm Drain Cannon Associates


Staff to generate a Request for Budgeted Funds $800,000.00 Staff identified the need to provide storm drainage andProposal (RFP) to initiate design detention to drainage deficient areas north and south ofof a Park Storm Basin and pump Expended $0 Pacheco Blvd. An Area of Benefit was created for deficientstation located at Talbott Park. parcels to pay their share of the costs for the storm drain.

The intention is to design Talbott Park as a Park Basin.The detention area needed versus the acreage of thecurrent park will allow for soft sloping of the detention areaand upgrade the irrigation system and park amenities.



Project Progress

DECEMBER 2008

Salinity Study EKI

Study Status 2008- 09 BUdget Additional Information

Final Study is being prepared. Budgeted Funds $62,500.00 Salinity Study has been finalized and submitted toPublic Works.

Expended $44,668.00

Balance $17,832.00

EKIGroundwater Study.Study Status 2008- 09 Budget Additional Information

Budgeted Funds $62,500.00Local well information gathered Results from monitoring well testing will be forwarded toand selection of three new Expended $59,636.00 Regional Board (RWQCB) for review and approval.monitoring well locations complete. Draft study submitted to staff for review.

Balance $2,864.00

Pre-Treatment System Study Kennedy-Jenks

Study Status 2008- 09 Budget Additional Information

All information and shop drawings Budgeted Funds $59,700.00 Type of pre-treatment pilot testing beingfrom LB Foods has been evaluated for recommendation to staff.researched and reviewed. Expended $28,877.00 Draft study submitted to staff for review.

Balance $30,823.00



Project Progress

DECEMBER 2008Eco:LogicWWTP Headworks Design -

Design Status 2008- 09 Budget Additional Information

Design parameters have been BUdgeted Funds $533,000.00 90% complete Design Documents submitted to the Cityagreed upon by City Staff and for review.consultants. Expended $249,122.00

Balance $283,878.00

Utilities Impact Fee Study Goodwin Consulting Group

Study Status 2008- 09 Budget Additional Information

Professional Services Agreement Budgeted Funds $50,500.00 Consultant is preparing an estimate on future impact feeshas been executed. based on the draft list of capital improvements listed

Expended $17,462.00 in the Utility Master Plans.

Balance $33,038.00

Sanitary Sewer and Water Rate Study HF&H Consulting

Study Status 2008- 09 BUdget Additional Information

Professional Services Agreement Budgeted Funds $64,477.00 Consultant to begin study once existing infrastructurehas been executed. deficiencies have been identified in the Utility Master

Expended $0 Plans.

LOS BanosAt the Crossro(uls of C:ali!()rllill- -

TO:

FROM:

DATE:

Agenda Staff ReQort

Mayor &City Council Members

Elaine Post, RDA Director tt..fDecember 17, 2008

SUBJECT: Resolution supporting Congressman Dennis Cardoza's efforts to reducefixed mortgage rates.

TYPE OF REPORT:

Recommendation:

Consent Agenda

Approve Resolution # as submitted in support of Congressman Dennis Cardoza'sattempt to reduce fixed mortgage rates.

Background:

Congressman Dennis Cardoza's staff has requested letters of support or resolutions tothe Congressman's proposed plan to the Treasury Department that would allowhomeowners in foreclosure to obtain a 30-year mortgage at a 4.5 percent fixed rate andextend this program to all American homeowners.

Discussion:

In .a press release from Congressman Dennis Cardoza's office, he expressed strongsupport for his plan to reduce interest rates to 4.5 percent for those in foreclosure, anddemanded the Treasury Department extend this program to all American homeowners.Congressman Cardoza said he believed homeowners who had been responsible andpaid their mortgages on time should also receive the benefit of a lowered mortgage. Hestated the lower payments for all owners would "essentially be giving each homeowner

a stimulus check by putting more money in their pocket without placing a burden on theTreasury or the taxpayer."

Reviewed by:

S~CityManager

Attachments:

ResolutionLetter from Congressman CardozaPress Release from Congressman CardozaArticle dated Dec. 6, How to Solve the Foreclosure Crisis

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS IN SUPPORT OFCONGRESSMAN DENNIS CARDOZA'SEFFORTS TO REDUCE FIXED MORTGAGERATES

WHEREAS, the City of Los Banos is currently struggling with the foreclosure ofmore than 1866 homes due to the economic downfall; and

WHEREAS, another 1,000 homes are expected to be foreclosed upon in thebeginning of 2009; and

WHEREAS, with the increased number of foreclosed homes the City has seen adrastic reduction in sales and property tax; and

WHEREAS, legislative efforts to address the problem by providing $1.7 million toLos Banos from its Neighborhood Stabilization Program falls short of fu,nding needed toassist Los Banos families; and

WHEREAS, one in 10 Americans was in defaulted or foreclosure last quarter;and

WHEREAS, the only way to address this far reaching crisis is to pursue anequally far-reaching solution; and

WHEREAS, Congressman Dennis Cardoza has proposed a plan to offer allAmerican mortgage holders to refinance into a 30-year, 4.5% fixed-rate mortgages; and

WHEREAS, this plan would provide stabilization to the h6using market andstimulate the economy by helping Americans save hundreds of dollars on theirmortgage payments each month;

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of LosBanos does hereby support Congressman Cardoza's Plan to reduce fixed mortgagerates for All Americans.

The foregoing Resolution was introduced at a regular meeting of the City Councilof the City of Los Banos held on the _ day of 200_, by Council Member__-'- who moved its adoption, which motion was dUly seconded by Council Member___ and the Resolution adopted by the following vote:

AYES:

NOES:ABSENT:

ATTEST:

Lucille L. Mallonee, City Clerk

APPROVED:

Tommy Jones, Mayor

December 8, 2008

Dear Colleague:

As many ofyou are coming to realize, the housing crisis is simply not improving. Foreclosurerates continue to skyrocket; more and more families are being forced to uproot their lives; andentire cities are collapsing under the weight of abandoned homes. We must finally pursue aresponse that is just as far-reaching as the crisis itself.

Unfortunately, despite good intentions, our past legislative efforts to address and preventforeclosures have not worked; HOPE NOW, FHASecure, Hope for Homeowners have all failedin large part to stem the tide of foreclosures sweeping across our cities and towns, leavingdevastated families, neighborhoods, and cities in its wake. One in 10 Americans was in defaultor foreclosures last quarter, and experts estimate 2.8 million more homes will enter foreclosureby December 2009.

The only way to address this far-reaching crisis is to pursue an equally far-reaching solution.That is why I have been advocating for months a response that will allow all American mortgageholders to refinance into 30-year, 4.5% fixed-rate mortgages. Using the conservatorship ofFannie Mae and Freddie Mac, the federal government can achieve this goal with relative ease.Modifying mortgages and preventing foreclosures will be far less costly than the extensive lossofhomes anticipated in the next year. In addition to stabilizing the housing market, this plan willalso stimulate our economy by helping Americans save hundreds of dollars on their mortgagepayments each month.

These are truly unprecedented times. Unless we pursue responses that are proportional to thecrisis, we will watch our districts and this country slip further into a recession whose end willelude us for years to come.

I am currently drafting legislation for this comprehensive solution. Enclosed is an articlepublished this past weekend in Barron's that outlines the basic tenets ofmy proposal. For moreinformation or if you would like to be an original cosponsor of this bill, please contact NoraTodd at nora. [email protected] or 5-6131.

Sincerely,

IsDennis CardozaMember of Congress

])ennisC:ardozaRepresentingCalifornia's13tllCongressionai District

Congressman Cardoza demands 4.5 percent mortgages forall homeowners

For Immediate Release: December 8, 2008

Contact: Mike Jensen (202) 225-6131

WASHINGTON, DC - Today Congressman Dennis Cardoza expressed strong support for a planbeing considered by the Treasury Department that would allow homeowners in foreclosure to

obtain a 30-year mortgage at a 4.5 percent fixed rate. Congressman Cardoza, whose district hasthe highest foreclosure rates in the country, further demanded the Treasury Departmentimmediately look into expanding this program to all American homeowners.

"For months I have said that the housing crisis has ballooned far beyond just the subprimemarket, and we must quickly implement a response that is just as far-reaching," he said, addingthat allowing all homeowners to have access to the long-term, fIxed-rate mortgages would

immediately stabilize the housing industry and help turn the economy around. "While theTreasury plan is a first step, we need a program that deals with the housing crisis at its sourceand in a comprehensive way. I strongly urge the Treasury Department to make it available to asmany Americans as possible - as soon as possible."

Congressman Cardoza further reiterated that the program must be made available to allAmerican homeowners regardless of their foreclosure swtus. Those homeowners, he said, whohave been responsible and paid their mortgages every month should receive the benefit of alowered mortgage, as should those who need assistance meeting the demands of their mortgages.

"By lowering the monthly payments, we will essentially be giving each homeowner a stimulus

check by putting more money in their pocket and without placing a burden on the Treasury or thetaxpayer," Congressman Cardoza said~

###

SATURDAY, DECEMBER 6,2008

FEATURES MAIN

How to Solve the Foreclosure CrisisBy JONATHAN R.LAING

Listen up, Uncle Sam: Barron's plan to end the foreclosurecrisis is bigger, better -- and probably cheaper -- than yours.

NOTIDNG IS THREATENING THE U.S. FINANCIAL MA.RKETS, and indeed the U.S.economy, as much at the relentless rise in home foreclosures.

The overhang of foreclosed homes for sale is pummeling home prices and laying waste to entireneighborhoods. In the process, consumer spending has suffered mightily and deepened therecession as Americans have seen the value of their most important assets, their homes, plummetin value. .

Likewise, some $f.5 trillion of securities backed by subprime and similar mortgages havecontinued to decline in value, destroying the capital ofmany major banks and other fInancialinstitutions faster than the government has been able to replenish it under the Troubled Asset

ReliefProgram, or TARP.

The gOlernment must:

ROAD TO RECOVERY

2. Make similar ION-rate mortgages available to home bUyers,as the Treasury proposed this week.

1. Offer to refinance fNery American homeowner's mortgageat 4.5%, to reduce the chances of additional defaults.

3. Make full use of Fannie Mae and Freddie Mac. They shouldrepackage all the new loans as safe securities for Investors.

4. ModiI)' the $500 billion of sub~lmeand Alt-A loans Inarrears. Extend maturities to 40 years, and In some casespay down principal.

Yet, Uncle Sam's attempts to stem the tideof foreclosures and arrest the baleful fall inhome prices have been, in a word, pathetic.The latest effort -- the proposal floated lastweek by the Treasury Department to exhortbanks to offer super-low 4.5% mortgages-was a step in the right direction. But inextending support to buyers of homes, itcompletely ignores the agonies of theroughly 50 million families that alreadyhave mortgages. As a result, it does little tohalt the surge in foreclosures. Some 2.85million home owners are likely to default

this year, rising to as many as 4 million next year, according to Moody's Economy.com.

That's why Barron's is proposing sweeping action. First and foremost, the government shouldmake that same 4.5% mortgage rate, the lowest in decades, available to all Americanhomeowners through refinancings. Banks and other lenders would write the loans and then sellthem to Fannie Mae and Freddie Mac, the secondary-market giants that were nationalized inearly September.

The new rates, and lower monthly payments, would be especially helpful for homeowners withnegative equity (they owe more on their mortgages than their homes are worth). Such underwaterborrowers -- prime candidates for default -- account for about $2 trillion of the $11 trillion ofU.s. mortgage debt outstanding.

Meanwhile, the government must help "modify" the most troublesome group ofmortgages -- theroughly $500 billion ofsubprime and Alt-A mortgages that are in arrears and headed towardforeclosure. The government should facilitate extending the amortization periods from 30 yearsto as long as 40 years, cutting rates to 4.5% or lower and, on some loans, reducing principalbalances.

Ambitious as all this is, it could probably be accomplished for $100 billion. That's a relativelysmall sum in the context ofthis year's bailouts, and it would excise the very tumor that triggeredthe global financial meltdown last year. The key: smart use ofFannie and Freddie, which up tonow have been vastly underutilized.

Is this proposal utopian? Not really. We've talked to experts, from Economy.com's Mark Zandito former Fed Vice Chairman Alan Blinder, who in an op-ed piece in the New York Times earlythis year astutely warned of an impending mortgage-default tsunami. We've also borrowed fromimaginative mortgage-relief ideas put forward by the likes ofR. Glenn Hubbard and Chris Mayerof the Columbia Business School, long-time market strategist Edward Yardeni and the chiefofthe Federal Deposit Insurance Corporation, Sheila Bair.

The FDIC leader was turned down by Treasury when she sought $25 billion of the government's$700 billion TARP plan to provide a federal guarantee and loss-sharing on approximately twomillion modified home mortgages. But Bair's idea clearly had merit.

TO MAKE OUR PLAN WORK, the Federal Reserve would have to create a special fundingfacility for Fannie Mae and Freddie Mac so that they could effectively borrow at Treasury rates.Currently, the two organizations are borrowing at a significant spread over Treasury rates.

That higher borrowing cost was the result of Treasury's refusal during the nationalization to"explicitly" guarantee Fannie and Freddie's debt and guarantee obligations -- a move thatBlinder, for one, has labeled as boneheaded. As a result, Treasury and the Fed two weeks agounveiled a program to spend $600 billion buying back Fannie and Freddie debt and mortgagebacked securities to bring down the two titans' borrowing costs. The move has diminished but

. not eliminated the spread over Treasuries.

The mortgage rates offered through Fannie and Freddie tend to run about 1.5 percentage pointsabove their funding costs. If their borrowing rates converged with Treasuries', they could offermortgages at around 4.2% since the 10-year Treasury bond currently trades at around 2.7%. Butto leave a margin for error, we'll stick to a 4.5% rate.

Such a drop in rates would set oft a frenzy of refmancingssimilar to what occurred in the balmy days of2005. Yet thisonslaught is something that Fannie and Freddie could easilyhandle with their large infrastructures and close relationshipswith banks and other mortgage originators, from whom theypurchase mortgages in the secondary market:

Fannie and Freddie would bundle the refmanced loans into basic,guaranteed securities for investors. Demand for such securitieshas remained brisk throughout the credit crunch, and it shouldget even stronger with explicit government backing.

Perhaps most important, Fannie and Freddie would have toloosen their overly stringent underwriting standard. Today, no

John Kuczala for Barron'sborrower can receive the current conforming rate of 5.6% oreven have a prayer of garnering a refi without a sky-high FICOcredit rating of over 730 and a down payment of at least 20% to 30%. That disqualifies the vastmajority ofhomeowners.

THE GREAT LEAP OF FAITH under our program involves the refinancing ofallhomeowners at the same low rate, even if they have negative equity in their homes. The latterfactor would seemingly give some an incentive to walk away from their obligations.

Such lenience on the surface would seem suicidal for Fannie and Freddie, who had enoughtrouble making sound "qualifying" loans as to end up as government wards. But remember, theoverwhelming bulk of the mortgages they would end up refinancing undet our plan will comefrom the $5.5 trillion pool ofmortgages that they already own or guarantee. So such a move, infact, would lower rather than boost their ultimate credit risk, because the newer mortgages' lowermonthly payments would reduce homeowners' likelihood ofdefaulting.

We would even require Fannie and Freddie to address many ofthe subprime and Alt-Amortgages that are sitting in the toxic, $1.5 trillion of securitizations that Wall Street confected atthe 2006-2007 peak: of the housing market. Remarkably enough, some $1 trillion of these loansare still current, even though virtually none ofthese borrowers would'ye ever qualifiedJorFannie or Freddie loan purchases using the agencies' traditional metrits ofloan-to-value ratiosand the like. Little or no attention was paid to borrower suitability or ability to repay.

Unless Washington acts bOldly, mortgage delinquencies andforeclooures are sure to keeP rising.

LOSING THE HOUSE

MORTGAGE DELINQUENCY RATEThe a....efage delJnquency rate tor all homeshas been rising steadily•..

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'07 '08

~. 5%

But the risks we'd ask Fannie and Freddie toshoulder with this pool are less than theymight appear at first blush. Many of thespeculators and fraudsters that originallypopulated these Wall Street securitizationshave long since defaulted and beenforeclosed on, so they're gone from the pools.And there's much to be said for the moralfiber ofthe redoubtable subprime and Alt-Aborrowers who have continued to honor theirobligations. Although they likely boughttheir homes near the peak of the market andare now drowning in negative equity, theirattachment to their homes is clearly morethan fmancial.

MORTGAGE LOAN DEFAULTS",and Ule volume of rnortgages in foreclosure11as been surging.

Finally, Fannie and Freddie are hardly-$160 .disinterested parties in how theses subprime

lriland Alt-A securitizations fare. In fact, the= 120 two giants got caught up in the same

speculative fervor that other mortgage- so players did, and they bought for investment

some $220 billion of the securities in the $1.540 trillion total. Also, the Fed and Treasury are

probably on the hook for the credito performance of another $250 billion or so of

these toxic securities, not the least because ofthe bailouts ofBear Steams, AIG and

&AJrr>3$, E'Il"j1"~; m(l(ll;IY13€Conol11~·.GomCitigroup.

Hence, Fannie and Freddie would be doing themselves and their federal masters an immensefavor by facilitating the refmancing of the $1 trillion in performing mortgages from this pool.With lower monthly payments, many more ofthese subprime and Alt-A borrowers will have achance to avoid delinquency.

The remaining $500 billion of securitized subprime and Alt-Ioans is the most problematic, sincethese loans are already delinquent or further down the road to foreclosure. Some experts, in fact,argue that this cohort is beyond redemption, and under the dictates of triage should be allowed todie an undignified death.

But under our plan, a special government entity would be created that would buy these loans outof the securitization pools at full price and thus end their zombie-like existence.

There are many advantages, ofcourse, to cashing out and collapsing these securitizations. Banksand other fmancial institutions that own a ton ofthis stuffwould enjoy an immediate boost intheir capital. Also, many funds and other institutions have made costly off-track bets on the

performance of these securities in the form ofcollateralized debt obligations and credit-defaultswaps; we would propose to just close down the subprime casino and allow bettors to cash intheir chips.

Yet the securitization trusts wouldn't get off scot-free for our full-price purchase. They wouldhave to shoulder~ say~ the first 25 cents on the dollar of any losses our entity suffered fromforeclosures and other credit losses. Thus the government's effective exposure would be cappedat 75 cents on the dollar.

But at least our special government entity would control these toxic mortgages. Then the FDIC,say, would be able to launch its Loan Modification Program and exercise its full panoply ofmeasures to rehabilitate these delinquent mortgages, extending amortization periods, cuttingrates and more.

Up to now, trustees and servicers of these high-risk mortgage pools have been reluctant tomodify any ofthe mortgages holdings. They fear that any such actions would invite lawsuitsfrom the holders ofcertain classes oftheir securitizations. The government's involvement wouldshield the trustees and servicers from that risk.

The Bottom Line

Our plan would require about $100 billion, a fraction ofthe financial bailout's total cost. Onekey: cutting borrowing costs for Fannie and Freddie.

Ultinlately~ the cost of the Barron's program could be far lower than you might suspect. Take the$500 billion modification plan. Even if60% ofthese nonperforming mortgages go to foreclosureand the recovery there is only 50%, the resulting $150 billion loss would be only $75 billion afterthe securitization sellers cover their first-loss payment on the bad mortgages.

As for the $1 trillion ofhigh-risk mortgage securities being assumed by Fannie and Freddie, theirpotential losses would seem to be manageable -- say~ around $15 billion or so -- even assuming asevere cumulative default rate over the next five years of 20% and the same 50% recovery atforeclosure. A lot of the defaulting mortgages could be cured short offoreclosure. Also offsettingthese credit losses are the likely $45 billion the portfolio would throw off in earnings.

LAST WEEK, FED CHAIRMAN Ben Bemanke gave a speech in which he brilliantlydissected the u.s. housing crisis and its centrality to all the financial and economic problemsplaguing the U.S. But when he came to offering solutions, his proposals were both timid andineffectuaL It's not enough for a learned doctor to make the correct diagnosis. He must also comeup with the correct cure, even if it involves invasive surgery.

Unless Washington begins to act boldly on the mortgage front, today's bad times will only get farworse.

LOS Banos

TO:

FROM:

DATE:

Agenda Staff Report

Mayor & Council Members

Melinda Wall, Chief Financial Officer~Lucy Mallonee, Human Resources Dlrecto~

December 17, 2008

SUBJECT: Closure of City Offices on December 26, 2008 and January 2, 2009


Recommendation:Approve closure of non-essential City offices on December 26, 2008, and January 2,2009.

Background:City policy provides paid holidays to City employees for both Christmas Day and NewYear's Day. However, the day after these holidays is a regular business day for staff.With Christmas and New Year's Day both falling on Thursdays, it is reasonably certainthat the following Fridays will be exceptionally slow business days. Thus, it is a goodopportunity to close all non-essential functions in an effort to realize energy costsavings.

Discussion:Under this scenario, all offices located at 520 J Street, 411 Madison, 830 6th Street, and1015 F Street would be closed on December 26, 2008 and January 2, 2009. All nonessential functions outside of these offices would also be closed and departmentsreducing staff in other areas to only that necessary for the provision of essentialservices.

Employees affected by the closures may utilize accrued leave balances such asvacation and compensatory time off (CTO) which is accrued by overtime eligibleemployees in lieu of accepting actual cash payment for overtime. As a result, the Citymay realize some savings by reducing the long-term liability associated with theseaccrued leaves.

Additionally, employees may consider voluntary furloughs for both days or the use ofnegative vacation accrual if all other leave balances are depleted. Negative vacationaccruals must be repaid before additional leave can be accrued.

Fiscal Impact:The City will realize cost savings through reduced energy usage on the two businessclosure days and through employee costs for the two-day voluntary furlough. Theenergy savings are unknown at this time.

Reviewed by:

~, City Manager

Attachments:Resolution approving closure of non-essential City offices on December 26, 2008 andJanuary 2, 2009.

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS APPROVING CLOSURE OFNON-ESSENTIAL CITY OFFICES ON DECEMBER26, 2008 AND JANUARY 2, 2009

WHEREAS, on December 17, 2008, the City Council received a report from theChief Financial Officer and Human Resource Director on the use of employee furloughsas a budget reduction; and

WHEREAS, the Chief Financial Officer and Human Resource Directorrecommended implementing voluntary unpaid furloughs; and

WHEREAS, the City Manager approved staff's recommendation to close nonessential City offices on Friday, December 26,2008 and Friday, January 2,2009, allowingemployees to utilize accrued leave balances such as vacation, compensatory time off(CTO), or the use of negative vacation.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of LosBanos does hereby approve the closure of all non-essential City offices on Friday,December 26, 2008 and Friday, January 2, 2009.

BE IT FURTHER RESOLVED that impacted employees may use accrued leavebalances such as vacation, compensatory time off (CTO) or the use of negative vacationor voluntary furloughs.

The foregoing Resolution was introduced at a regular meeting of the City Council ofthe City of Los Banos held on the 17th day of December 2008, by Council Member___ who moved its adoption, which motion was duly seconded by Council Member___ and the Resolution adopted by the followin'g vote:

AYES:NOES:ABSENT:

APPROVED:

Tommy Jones, MayorATTEST:


City of

LOS BanosAt tlu: Crossfow;is (~f C"l(tornli:l

TO:

FROM:

DATE:

Agenda Staff Report

Honorable Mayor &City Council Members

Mark Fachin, P.E., Interim Public Works Director/City Engineer~~December 17, 2008

SUBJECT: One Year Lease Renewal with Merced County Mental Health Department


Recommendation:That the City Council adopt the Resolution authorizing the City Manager to execute aOne Year Lease Renewal with Merced Couhty for office space at 825 and 827 ColoradoAvenue for the Department of Mental Health.

Background:The Merced County Mental Health Department has been leasing office space from theCity of Los Banos at 825 and 827 Colorado Avenue since December 1, 2002. Theircurrent lease for the two office spaces is $3,634.00 per month, and terminated onNovember 30, 2008.

Discussion:Merced County has requested the City extend their lease agreement for office space at825 and 827 Colorado Avenue for the Department of Mental Health for an additionaltwelve months. The lease renewal period would commence on December 1, 2008 andterminate on November 30, 2009. The rent for the two office spaces would be$3,743.00 per month. The City Attorney has reviewed the attached lease agreement.

Fiscal Impact:$44,916.00 will be received into the General Fund as a result of this one year leaserenewal.

Reviewed by:

Attachments:Lease AgreementResolution

Ste~ty Ma~ager

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MERCED COUNTY

CONTRACT NO. _

LEASE FOR OFFICE SPACE

BETWEEN

MERCED COUNTY

AND

CITY OF LOS BANOS

THIS LEASE is entered into by and between the County of Merced, a political subdivision of the State of

California, (hereinafter referred to as "LESSEE"), and the City of Los Banos, a California municipal

corporation, (hereinafter referred to as "LESSOR").

11 In consideration of the mutual covenants and promises herein contained, the parties hereby agree as

follows:12

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1. PREMISES

LESSOR does hereby lease to LESSEE the real property and improvements located at, and commonly

known as 825 Colorado Avenue, Los Banos, California, including 1,860 square feet of office space and

referenced herein as "Trailer 1"; and the real property and improvements located at, and commonly

known as 827 Colorado Avenue, Los Banos, California, including 1,920 square feet of office space and

referenced herein as "Trailer 2" (hereinafter referred to as "Premises"). During the term of this lease,

LESSEE shall use the Premises solely for the purpose of providing mental health services by the

Merced County Department of Mental Health and uses ancillary thereto and for no other purpose without

the prior written consent of LESSOR which shall not be unreasonably withheld.

2. TERM

The term of this Lease shall be for twelve (12) months, commencing on December 1,2008, and

terminating on November 30, 2009, unless terminated earlier pursuant to the provisions of this lease. In

the event LESSEE holds over and continues in possession of the Premises after expiration of the

Original Term, LESSEE'S continued occupancy of the Premises shall be considered a month-to-month

tenancy subject to all the terms and conditions of this lease.

3. OPTION TO RENEW

LESSOR hereby grants to LESSEE the right and privilege to extend this Lease for one (1) renewal

period of twelve (12) months each from the date of expiration of the term hereof, upon the same terms

and conditions as herein contained, except LESSOR and LESSEE agree that the rent may be

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renegotiated for the renewal period for an amount not to exceed five percent (5%) above the most recent

monthly rent payment. LESSEE shall give LESSOR a ninety (90) calendar days written notice of

LESSEE'S intention to exercise its option to renew prior to the date of expiration of the term thereof.

4 4. RENT

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LESSEE agrees to pay LESSOR rent in the sum as stated herein. Payment shall be made monthly in

advance and due on the first (1 st) day of each and every month on which it is due, but no later than the

tenth (10th) day of each and every month. Rent for any period during the term hereof which is for less

than one (1) full calendar month shall be a prorated based upon the actual number of days of said

month.

LESSEE agrees to pay LESSOR, and LESSOR agrees to accept rent as follows:

Start Date End Date Months Monthly Rent

12/01/08 11/30109$1,885.00 Trailer 1

12$1,858.00 Trailer 2

Any andlor all payments made under this Lease shall be paid by check, payable to the order of the

LESSOR and be mailed or delivered to LESSOR at:

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Name:

Address:

City:

StatelZip:

City of Los Banos

520 J Street

Los Banos

CA,93635

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LESSOR may request the LESSEE to have the check mailed or delivered to LESSOR, in such a manner

of, or at such other address as, LESSOR may from time to time designate to LESSEE. Such request

must be made in writing in accordance with such procedures as set forth under Section, "NOTICES".

225. TERMINATION FOR CONVENIENCE

23 Notwithstanding anything to the contrary, LESSEE may terminate this Lease at any time without cause

24 or legal excuse by providing LESSOR with thirty (30) calendar days written notice of such termination.

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6. TERMINATION FOR CAUSE

If LESSOR materially defaults in the performance of its obligations under this Lease Agreement, or

otherwise breaches this Agreement (a "Default"), LESSEE may, in addition to any other remedies it may

have, provide LESSOR with written notice of Default in the manner set forth under the "NOTICES"

clause, specifying the provision(s) or term(s) of this Agreement that LESSOR has failed to satisfy or has

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breached. In the event of any proceeding by or against the LESSOR, including but not limited to

bankruptcy, insolvency, appointment of a receiver or trustee, or an assignment for the benefit of

creditors, the Lessee may exercise its right of termination under this Section.

4 7. TERMINATION DUE TO DESTRUCTION OR CONDEMNATION

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LESSEE shall have the right to terminate or require discontinuance of this lease, in whole or in part, for

such time as may be necessary. This may occur when weather, flood, fire, or other casualty causing

destruction or condemnation of the Premises as uninhabitable and when the Premises are not able to be

repaired within the limits specified in under Section, "Abatement of Rent". Notice must be given in

writing to LESSOR within thirty (30) calendar days after such casualty and no rent shall accrue or be

payable to the LESSOR after such termination.

10 8. TERMINATION DUE TO NON APPROPRIATIONS

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LESSEE is a public body and a political subdivision of the State of California and is authorized by the

Constitution and laws of the State of California to enter into the transactions contemplated by this Lease

and to carry out its obligations thereunder.

Notwithstanding anything contained in this lease to the contrary, the LESSEE shall not be deemed in

default in the event no funds, or insufficient funds, are appropriated in the budget or otherwise

unavailable in any fiscal year for rental payments due on this Lease. LESSEE will notify the LESSOR or

its assignee of such occurrence and this Lease will create no further obligation of LESSEE to such

current or succeeding fiscal year and shall be null and void, except as to the portions of rental payments

herein agreed upon for which funds shall have been appropriated and budgeted. In such event, this

Lease shall terminate on the last day of the period for which appropriations were received without

penalty or expense to LESSEE of any kind whatsoever. Subsequent to the termination of this Lease, the

LESSEE shall have no further obligations to make rental payments under this Lease. No right of action

or damages shall accrue to the benefit of LESSOR, or its assignee as to that portion of this Lease which

may so terminate. In the event of such termination, LESSEE agrees to peaceably surrender possession

of the Premises to LESSOR or its assignee on the date of such termination. LESSOR shall have all

legal and equitable rights and remedies to take possession of the Premises.

9. ABATEMENT OF RENT

In the event of Partial Damage to or Total Destruction of the Premises, the rent payable by LESSEE for

the period for the repair, remediation or restoration of such damage shall be abated. The abatement

shall be from the date of damage or destruction in proportion to the degree to which LESSEE's use of

the Premises is impaired.

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Partial Damage shall mean damage or destruction to the Premises, other than LESSEE owned

alternations, which can reasonably be repaired in sixty (60) days or less from the date of the damage or

destruction. Total Destruction shall mean damage or destruction to the Premises which cannot

reasonably be repaired in sixty (60) days or less from the date of the damage or destruction. The

Damage or Destruction may result from conditions of weather, flood, fire, earthquake, any other

identifiable event of a sudden, unexpected or unusual nature, condemnation of the Premises to be

uninhabitable, or due to a hazardous substance condition for which LESSEE is not responsible under

this Lease.

Tenant agrees to immediately notify LESSOR in writing of any such damage or destruction to the

Premises. LESSOR shall notify LESSEE in writing within fifteen (15) calendar days from the date of the

damage or destruction as to whether or not the damage is partial or total.

LESSOR shall promptly and diligently restore the Premises including any Tenant improvements

originally constructed by LESSOR to substantially the same condition as existed before the damage,

except for modifications required by building codes and other laws.13

14 10. LESSEE'S PERSONAL PROPERTY

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LESSEE shall not make any alterations or additions to facilities on the designated Premises without prior

written consent of LESSOR. However, it is contemplated by both parties that LESSEE may bring upon

said Premises and install or attach thereto, various items of personal property. It is agreed that said

items of personal property erected on said leased Premises by LESSEE may be removed by LESSEE at

the termination of this lease, or at any time during the term of this lease or any extension thereof, even

though the same may be attached to said Premises, provided LESSEE does so without substantially

damaging the Premises and all necessary repairs caused by such removal are repaired by LESSEE.

2111. MAINTENANCE AND REPAIRS

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LESSEE accepts the Premises, as well as the Improvements located on the Premises, in their present

condition and stipulates with LESSOR that the Premises and Improvements are in good, clean, safe,

and tenantable condition as of the date of this lease. LESSEE further agrees with and represents to

LESSOR that the Premises have been inspected by LESSEE, that it has received assurances

acceptable to LESSEE by means independent of LESSOR or any agent of LESSOR of the truth of all

facts material to this lease, and that the Premises are being leased by LESSEE as a result of its own

inspection and investigation and not as a result of any representations made by LESSOR or any agent

of LESSOR except those expressly set forth in this lease.

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LESSEE shall maintain the interior of said Premises in a reasonable state of repair and good order, and

upon vacating said Premises it shall leave the interior in a condition at least equivalent to its present

condition and state of repair, save and except for the consequences of reasonable wear and usage.

LESSOR shall, at LESSOR'S sole cost and expense, maintain the building and any related structures

which serve the leased Premises (other thEm those which are the specific responsibilities of LESSEE as

provided for herein) in a safe and useable condition. LESSOR shall also maintain, at LESSOR'S sole

cost and expense, the roof, foundation, exterior walls, mechanical equipment (i.e. air condition/heating

units), electrical equipment (i.e. wiring and lighting), general plumbing, and sewer lines which serve the

leased Premises. LESSOR shall be responsible for replacement of broken glass to windows or doors to

said Premises resulting from vandalism, acts of God, or by the elements. Plumbing and sewer problems

or glass breakage attributed to misusage by LESSEE or determined to be the act of any client

associated with LESSEE'S program(s) shall be the responsibility of LESSEE.

Any maintenance that is the responsibility of LESSOR that requires entry into the Trailers shall be

performed during business hours or as otherwise specifically arranged with LESSEE

LESSOR'S EXPENSES

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LESSOR agrees to furnish, or cause to be paid, exterior maintenance, pest control services, and

landscaping maintenance. LESSOR shall provide said Premises with necessary fire extinguishers of the

type and number in accordance with Article 157, Title 8 of General Industry Safety Ordinance or of latest

publications. LESSOR shall provide and maintain said Premises with necessary smoke detectors and

egress signs of the type and number in accordance with National Fire Preventative Association Code

101 or of latest publication.

Itis understood and agreed that LESSOR will purchase such fire extinguishers and smoke detectors as

referenced herein above, and that LESSEE will be responsible for maintaining such fire extinguishers

and smoke detectors thereafter during the term of this Lease.

13. LESSEE'S EXPENSES

LESSEE agrees to pay for interior light bulbs, telephone, gas, electricity, water, and garbage and

janitorial services for the leased Premises (non-common areas) during the occupancy under this Lease.

26 14. USE OF PARKING & COMMON AREAS

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During the term of this Lease, LESSOR shall manage, maintain and keep clean the parking areas,

driveways, walkways, and common areas associated with the building in which the leased Premises is

located for the general use and convenience of LESSEE. The location of, changes to, and maintenance

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of such areas shall be at the discretion of LESSOR, and the use of such areas shall be subject to such

reasonable regulations and changes as LESSOR sh!:lll make from time to time. LESSOR grants to

LESSEE during the term of this Lease the right to use, for the benefit of LESSEE, its employees, agents

and customers, such parking and common areas subject to date of expiration or extended term thereof.

5 15. SIGNS

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LESSEE shall not place on or in any exterior door, wall, or window of said leased Premises any sign,

awning, canopy, marquee, or other advertising without the express written consent and approval of

LESSOR. Should LESSOR consent to any such sign, awning, canopy, marquee, or advertising matter,

LESSEE shall maintain it at all times during this Lease in good appearance and repair. On expiration or

sooner termination of the Lease, any of the items mentioned in this section not removed from said

leased Premises by LESSEE, may, without damage or liability, be removed or destroyed by LESSOR.10

11 16~ REMEDIES OF LESSOR ON DEFAULT OF LESSEE

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Should LESSEE default in the payment of any rent, or in the observance or performance of any of

LESSEE's covenants or agreements herein, and should such default continue after ten (10) calendar

days following receipt of written notice thereof from LESSOR to LESSEE requiring payment, in the case

of default in the payment or rent; or after thirty (30) calendar days from the receipt of written notice

thereof by LESSOR to LESSEE requiring performance in case of such other defaults, LESSOR shall

have the right to terminate this Lease and personally, or by LESSOR's agent enter and take possession

of the leased Premises and remove LESSEE and LESSEE's property therefrom. LESSEE shall have

the right to cure any default within the period of notice thereof as specified herein above, and, if the

default, other than in the matter of payment of rent, is of such a nature that it cannot be cured within the

thirty (30) calendar day period specified in the notice thereof, it shall be sufficient if LESSEE shall in

good faith commence during said period to cure such default if so accomplished within a reasonable

time thereafter.

17. COMPLIANCE WITH GOVERNMENTAL REGULATIONS

LESSOR and LESSEE, in respect to their individual covenants and duties, will comply with the

requirements of Municipal, County, State, and Federal authorities now in force, or which may hereafter

be in force, pertaining to the said Premises.

2518. CHANGES IN THE LAW

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During the term of this Lease should any Federal, State or Local law be enacted, which materially affects

this Lease, the parties may renegotiate this Lease at that time.

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19. MONTH-TO-MONTH TENANCY

If no agreement has been signed prior to the expiration date of this Lease, then any holding over after

the expiration of said term shall be construed to be a month-to-month tenancy.

20. RIGHT TO ENTRY

LESSEE shall permit LESSOR, or their agents, to enter said Premises, or any part thereof, during

reasonable business hours (usually 8 AM to 5 PM, Monday through Friday), for the purpose of

examining, exhibiting the same, showing Premises to prospective tenants, or making such repairs or

alterations as may be necessary for the safety or preservation thereof. LESSOR shall not enter said

Premises without a representative of LESSEE being present except in cases of emergencies.

21. INDEMNIFICATION

LESSEE shall indemnify, defend and hold harmless LESSOR, its officers, board members, employees

and agents, from and against any claims, damages, costs, expenses, including any amount equal to

reasonable attorney's fees, or liabilities arising out of or in any way connected with this lease, including,

without limitation, claims damages, expenses, or liabilities for loss or damage to any property, or for

death or injury to any person or persons, in proportion to and to the extent that such claims, damages,

expenses, liabilities or losses arise from the negligence or willful acts or omissions of LESSEE, its

officers, employees or agents.

LESSOR shall indemnify, defend and hold harmless LESSEE, its officers, board members, employees

and agents, from and against any claims, damages, costs, expenses, including any amount equal to

reasonable attorney's fees, or liabilities arising out of or in any way connected with this lease, including,

without limitation, claims, damages, expenses, or liabilities for loss or damage to any property, or for

death or injury to any person or persons, in proportion to and to the extent that such claims, damages,

expenses, liabilities or losses arise from the negligence or willful acts or omissions of LESSOR, its

officers, employees or agents.

The obligations set forth above shall survive expiration or termination of this Agreement.

24 22. INSURANCE REQUIREMENTS

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LESSEE shall, at its own cost and expense, procure and maintain during the entire term of this lease

public liability insurance and premises damage insurance issued by an insurance company acceptable

to Landlord and insuring LESSOR against loss or liability caused by or connected with LESSEE's

occupation and use of the Premises under this lease in amounts not less than:

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(a) $1,000,000 for injury to or death of one or more persons as a result of anyone accident or

incident; and

(b) $1,000,000 for damage to or destruction of any property of others.

4 The insurance required under this section shall be issued by a responsible insurance company or

5 companies authorized to do business in California and shall be in a form reasonably satisfactory to

6 LESSOR. Such liability insurance, including the deductible, may be maintained as part of or in

7 conjunction with any other insurance coverage carried by LESSEE and may be maintained in the form of

8 self-insurance or liability pooling agreements.

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10 23. ASSIGNMENT OR SUBLEASING

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LESSEE shall not encumber, assign, or otherwise transfer this lease, any right or interest in this lease,

or any right or interest in the Premises or any of the Improvements that may now or hereafter be

constructed or installed on the Premises without first obtaining the express written consent of LESSOR.

LESSEE shall not sublet the Premises or any part of the Premises or allow any other person, other than

LESSEE'S agents, servants, and employees, to occupy the Premises or any part of the Premises

without the prior written consent of LESSOR. A consent by LESSOR to one assignment, one sUbletting,

or one occupation of the Premises by another person shall not be deemed to be a consent to any

subsequent assignment, subletting, or occupation of the Premises by another person. Any

encumbrance, assignment, transfer, or subletting without the prior written consent of LESSOR, whether

voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of LESSOR,

terminate this lease. The consent of LESSOR to any assignment of LESSEE'S interest in this lease or

the subletting by LESSEE of the Premises or parts of the Premises shall not be unreasonably withheld.

24. NOTICES

A. All notices, requests, demands or other communications under this Lease shall be in writing.

Notice shall be sufficiently given for all purposes as follows:

1. Personal Delivery. When personally delivered to the recipient, notice is effective upon delivery.

2. First Class Mail. When mailed first class to the last address of the recipient known to the party

giving notice, notice is effective three mail delivery days after deposit in a United States Postal Service

office or mailbox.

28 3. Certified Mail. When mailed by certified mail, return receipt requested, notice is effective upon

receipt, if delivery is confirmed by a return receipt.

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2 4. Overnight Delivery. When delivered by an overnight delivery service, charges prepaid or

charged to the sender's account, notice is effective on delivery, if delivery is confirmed by the delivery3

service.

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5. Facsimile Transmission. When sent by fax to the last fax number of the recipient known to the

party giving notice, notice is effective upon receipt, provided that: a) a duplicate copy of the notice is

promptly given by first class mail or certified mail or by overnight delivery, or b) the receiving party

delivers a written confirmation of receipt. Any notice given by fax shall be deemed received on the next

business day if received after 5:00 P.M. (recipient's time) or on a non-business day.

B. Any correctly addressed notice that is refused, unclaimed or undeliverable because of an act or

omission of the party to be notified shall be deemed effective as of the first date that the notice was

refused, unclaimed or deemed undeliverable by the postal authorities, messengers or overnight delivery

service.

C. Information for notice to the parties to this Lease at the time of endorsement of this Lease is as

follows:

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County of Merced (LESSEE)

Director, Department of

Mental Health

P.O. Box 2087

Merced, CA 95344

(209) 381-6813

(209) 725-8625 Fax

City of Los Banos (LESSOR)

Director of Public Works

520 J Street

P.O. Box 31

Los Banos, CA 93635

(209) 827-7056

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Any party may change its address or fax number by giving the other party notice of the change in any

manner permitted by this Lease.

25. MODIFICATION OF THE LEASE

Notwithstanding any of the provisions of this Lease, this writing contains the entire agreement between

the parties hereto, and there are no other agreements or understandings written or oral. This Lease may

not be changed or modified except in writing and signed by the parties hereto.

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26. WAIVER OF TERMS

No waiver of any terms, conditions, or covenant of this Lease by either party shall be deemed as a

waiver of any other item, condition, or covenant herein contained, nor of the strict and prompt

performance thereof.

5 27. CAPTIONS

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7

The captions of each paragraph on this Lease are inserted as a matter of convenience for reference

only, and in no way define, limit or describe the scope or intent of this Lease in any way.

8 28. COPIES OF THE LEASE

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This Lease is executed in counterparts each of which shall be deemed a duplicate original.

[SIGNATURE BLOCK BEGINS ON NEXT PAGEl

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IN WITNESS HEREOF, the parties, the day and year first above written, have affixed their signatures

hereto.

RECOMMENDED FOR APPROVALMERCED COUNTY MENTAL HEALTH

By _

Troy Dean Fox, Interim Director

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RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS AUTHORIZING ENTERINGINTO A LEASE RENEWAL AGREEMENT WITHMERCED COUNTY FOR OFFICE SPACE AT 825AND 827 COLORADO AVENUE FOR THEDEPARTMENT OF MENTAL HEALTH

WHEREAS, Merced County has requested the City of Los Banos extend theirlease agreement for office space at 825 and 827 Colorado Avenue for the Departmentof Mental Health for an additional twelve months; and

WHEREAS, the lease renewal period would commence on December 1, 2008and terminate on November 30, 2009; and

WHEREAS, Merced County agrees to pay rent in the amount of $3,743.00 permonth for the two office spaces; and

WHEREAS, said lease agreement, as presented, has been reviewed by the CityAttorney of the City of Los Banos; and

WHEREAS, the City Council of the City of Los Banos designates the CityManager to sign and execute the lease agreement.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of LosBanos does hereby approve the lease agreement with Merced County, and thedesignation of the City Manager to sign and execute the agreement as presented.

The foregoing Resolution was introduced at a regular meeting of the City Councilof the City of Los Banos held on the 17th day of December 2008, by Council Member___ who moved its adoption, which motion was duly seconded by Council Member___ and the Resolution adopted by the following vote:

AYES:NOES:ABSENT:

APPROVED:

Tommy Jones, Mayor

ATTEST:


1

LOS BanosAt a,e Crossro(uls t~f C(ll~fornia

TO:

FROM:

DATE:

Agenda Staff Report

Mayor & City Council Members

Melinda J. Wall r ~Chief Financial Office~

December 17, 2008

SUBJECT: City of Los Banos Policy & Procedures Manual - Division 5 Amendment

TYPE OF REPORT:

Recommendation:

Consent Agenda

Adopt City Council Resolution amending Division 5 of the City's Policy & ProceduresManual.

Background:

Effective November 1, 2007, the employee classifications identified in the Los BanosPolice Dispatchers/Community Services Officers Association Memorandum ofUnderstanding (MOU) were given the option to waive a City health coverage plan if theyhad other health insurance in place. An employee, covered under the MOU mentionedabove, who chooses to waive City health coverage may be compensated up to $300per month in lieu of receiving health benefits.

Discussion:

Currently the City pays the full amount of health coverage for each employee up to theHealth Maintenance Organization (HMO) rate. It has come to the attention of the Citythat some employees are not utilizing their health coverage because they have othercoverage in place. It would be a cost savings to the City if those employees who arenot currently utilizing their City health plan coverage, were instead compensated $300per month.

The ability to receive $300 per month in lieu of City sponsored health coverage wouldonly apply to miscellaneous employees and the employee would be required to provideproof of coverage in a health plan every six months in order to continue to receive the$300 per month benefit from the City. In the event that an employee loses theiralternative health coverage, they would be able to regain the City paid health coverageby notifying the Human Resources Director.

Fiscal Impact:

Currently the City pays $569.01 - $1,479.43 per month for each employee to receivehealth coverage at the HMO rate. Depending on the level of City paid health coveragethe employee currently receives, there is a potential cost savings of $269.01 $1,179.43 per month per employee.

Reviewed by:

SkCity Manager

Attachments:City Council Resolution No. _City of Los Banos Policy & Procedures Manual - Division 5

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS APPROVING ANAMENDMENT TO DIVISION 5 OF THE CITY'SPOLICY & PROCEDURES MANUAL

WHEREAS, the City Council of the City of Los Banos has received a requestthat Division 5 - Personnel Benefits, of the City of Los Banos Policy & ProceduresManual, be amended to reflect an additional provision in Section 505; and

WHEREAS, this provision gives miscellaneous employees an option of waivingCity paid health insurance coverage and receiving $300 per month in lieu of City paidhealth insurance; and

WHEREAS, the City Council has reviewed said request and made the necessaryamendment to Division 5 - Personnel Benefits, of the City of Los Banos Policy &Procedures Manual; and

NOW, THEREFORE, BE IT RESOLVED THAT the foregoing Resolution wasintroduced at a regular meeting of the City Council of the City of Los Banos held on the1t h day of December 2008, by Council Member __ who moved its adoption, whichmotion was duly seconded by Council Member __ and the Resolution adopted by thefollowing vote:

AYES: Council MembersNOES:ABSENT:

APPROVED:

Tommy Jones, Mayor

ATTEST:


DIVISION 5

PERSONNEL BENEFITS

Sec. 501 INTRODUCTION

The purpose of this Division is to identify the Employee Fringe Benefit Package asestablished by Council Resolution.

Sec. 502 FRINGE BENEFITS DEFINED

As used in this Division the term "Fringe Benefits" shall be construed to mean thosespecified rights, privileges, and payments provided by the City to an entitled employeeas supplemental compensation above their base salary.

Sec. 503 ENTITLED EMPLOYEES DEFINED

For the purposes of this Division, the term "Entitled Employee: refers to those personswho are employed in Regular (full-time) capacity with the City of Los Banos. Part-Time,Provisional, and Volunteer Employees shall not be entitled to Fringe BenefitCompensation, except; when such benefits are being provided by the City inaccordance with; a) the requirements of a Federal or State Law, b) a written contractualagreement approved by the City, or c) a memorandum of understanding between aspecific employee or employee group and the City.

Sec. 504 ESTABLISHMENT OF FRINGE BENEFITS

The Fringe Benefit Package for entitled employees is established by City CouncilResolution for each Fiscal Year (July 1 - June 30) of the City. Any Fringe Benefits thatwere provided during a previous or current Fiscal Year shall not be reduced oreliminated, except; a) when such change is mandated by Federal or State Law, b) inaccordance with an agreement or memorandum of understanding reached between theCity and the entitled employee or employees, or c) when the City Council determinesthat the City is not financially capable of continuing to fund a specific benefit or benefits.

Sec. 505 BENEFITS PROVIDED TO ALL REGULAR EMPLOYEES

a. Health Insurance Package: Health Insurance for full time City employees inaccordance with the following guidelines:

1. For employees hired prior to July 1, 2002, the City shall pay the fullpremium cost for a City approved Health Insurance for the entitledemployee and members of his/herimmediatefamily. As used in thissection the term "immediate family" means the eligible employee'sspouse, children, and dependents who meet the qualifications set forth in

Updated 12/17/08

DIVISION 5

PERSONNEL BENEFITS

Sec. 501 INTRODUCTION

The purpose of this Division is to identify the Employee Fringe Benefit Package asestablished by Council Resolution.

Sec. 502 FRINGE BENEFITS DEFINED

As used in this Division the term "Fringe Benefits" shall be construed to mean thosespecified rights, privileges, and payments provided by the City to an entitled employeeas supplemental compensation above their base salary.

Sec. 503 ENTITLED EMPLOYEES DEFINED

For the purposes of this Division, the term "Entitled Employee: refers to those personswho are employed in Regular (full-time) capacity with the City of Los Banos. Part-Time,Provisional, and Volunteer Employees shall not be entitled to Fringe BenefitCompensation, except; when such benefits are being provided by the City inaccordance with; a) the requirements of a Federal or State Law, b) a written contractualagreement approved by the City, or c) a memorandum of understanding between aspecific employee or employee group and the City.

Sec. 504 ESTABLISHMENT OF FRINGE BENEFITS

The Fringe Benefit Package for entitled employees is established by City CouncilResolution for each Fiscal Year (July 1 - June 30) of the City. Any Fringe Benefits thatwere provided during a previous or current Fiscal Year shall not be reduced oreliminated, except; a) when such change is mandated by Federal or State Law, b) inaccordance with an agreement or memorandum of understanding reached between theCity and the entitled employee or employees, or c) when the City Council determinesthat the City is not financially capable of continuing to fund a specific benefit or benefits.

Sec. 505 BENEFITS PROVIDED TO ALL REGULAR EMPLOYEES

a. Health Insurance Package: Health Insurance for full time City employees inaccordance with the following guidelines:

1. For employees hired prior to July 1, 2002, the City shall pay the fullpremium cost for a City approved Health Insurance for the entitledemployee and members ofhis/her immediate family. As used in thissection the term "immediate family" means the eligible employee'sspouse, children, and dependents who meet the qualifications set forth inArticle 1 and 5 of the Public Employees Medical and Hospital Care Actand Sections 599, 500, 599.501, and 599.502 of the Regulations of theAct

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Updated 12/17/08DIVISION 5

2. For employees hired after July 1, 2002, the City shall pay the full premiumcost for Health Insurance for the entitled employee and members ofhis/her immediate family, as described above, at the Health MaintenanceOrganization (HMO) level only. If the employee so desires, he/she mayenroll in the Preferred Provider Plan (PPO) and pay the additional costover and above the HMO rate. The cost for this additional insurance willbe deducted directly from the employees payroll check on the 5th of eachand every month of employment.

Special Note: At the time of this policy change, the City is in the processof recruiting for the positions of Chief of Police, Community DevelopmentDirector, Police Officer, Animal Control Officer and Community ServicesOfficer. It is expected these positions will be filled after the July 1, 2002amendment. Because the recruitment and advertising process beganprior to the policy change, these five positions will be entitled to the benefitfor employees hired prior to JUly 1, 2002.

4. Effective November 1, 2007, the employee classifications identified in theLos Banos Police Dispatchers/Community Services Officers AssociationMemorandum of Understanding, the City shall pay the full premium costfor the entitled employee only at the Health Maintenance Organization(HMO) level only. If the employee so desires, he/she may enroll in thePreferred Provider Plan (PPO) and pay the additional cost over and abovethe HMO rate. The cost for this additional insurance will be deducteddirectly from the employees payroll check on the 5th of each and everymonth of employment.

Furthermore, the employee classifications identified in the Los BanosPolice Dispatchers/Community Services Officers AssociationMemorandum of Understanding shall share the cost of the entitledemployee's immediate family, as described above, as follows:

Employee Only: $491.50Employee Plus One: $884.70Employee Plus Two or More: $1,022.32

Beginning January 1, 2008, the City will provide the following amounts permonth toward medical insurance coverage:

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Employee Only: $540.94Employee Plus One: $973.70Employee Plus Two or More: $1,125.20

Each subsequent calendar year, the City shall provide an increase of upto ten percent (10%) to the above amounts.

Effective November 1, 2007, the employee classifications identified in theLos Banos Police Dispatchers/Community Services Officers AssociationMemorandum of Understanding, may waive coverage under a Cityinsurance plan if, once every six (6) months, he or she provides proof ofcoverage in a group plan. An employee who waives coverage under aCity insurance plan may receive up to $300 per month in cash back.

b. Life Insurance: The City shall pay the full premium cost for $50,000 coverage inCity approved Life Insurance for the entitled employee.

c. Retirement Benefits: This benefit section is divided into two (2) sub-sections;Miscellaneous Employees and Public Safety Employees.

1. Miscellaneous Employees: The City shall pay the full share of the entitledemployee's contribution to the Public Employees Retirement System 2.7%at 55 Plan. Upon payment, such funds shall be vested in the name of theeligible employee.

2. Public Safety Employees (Law Enforcement Officers and Fire Fighters):The City shall pay the full share of the entitled employee's contribution tothe Public Employees Retirement System 3% at 50 Plan. Upon payment,such funds shall be vested in the name of the eligible employee.

3. Effective November 1, 2007, the employee classifications identified in theLos Banos Police Dispatchers/Community Services Officers AssociationMemorandum of Understanding, hired on or after January 1, 2008 will notreceive retiree health coverage. The City agrees to explore a HealthSavings Plan for new employees, to be instituted by July 1, 2008.

Retiree Health Savings Plan: As soon as practical following ratification ofthis MOU and approval by City Council, the City of Los Banos willestablish a program in which employees participate to save, on a taxdeferred basis, money to help pay the cost of healthcare once anindividual retires. The Retirement Health Savings Plan (RHSP) may beused for medical, dental, and vision care as well as other healthcareexpenses. The RHSP is not a vested benefit. Any changes to the RHSPare subject to meet and confer between the parties.

a) Participation is limited to and mandatory for employees hired on orafter January 1, 2008.

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b) For current employees and employees hired before January 1,2008 who are eligible for the City's retiree medical plan, the Cityagrees to e~plore an opt-out provision substituted by the RHSP,subject to the IRS rules and regulations of the provisions of theRHSP.

c) The City shall contribute $50 per month to the employee's RHSPaccount; likewise, the employee shall contribute $50 per month. totheir RHSP account. These contributions shall start after )anemployee has successfully completed their initial probationaryperiod.

d) Initial Probationary Period. During an employee's initialprobationary period with the City (immediately following the initialhire), neither the employee nor the City shall contribute to theemployee's RHSP account. Upon successful completion ofprobation, the City shall contribute a lump sum of $50 per monthfor each month served in the employee's initial probation.

JUry Leave: Regular City employees who are required to serve as members ofthe County Grand Jury, the Federal or State Grand Jury, or any Federal or Statecriminal jury or civil jury, shall be entitled to receive full salary and benefits duringthe time spent in such capacity; provided that such employee conveys to the Cityof Los Banos Finance Officer any jury fees or other compensation paid tohim/her for participation as a jury ember. Exception: Any fees paid to theemployee for travel expenses or mileage shall be retained by the employeeunless transportation was provided by the City.

Worker's Compensation Insurance: The City shall pay the full cost of Worker'sCompensation Insurance premiums for all employees. Worker's CompensationInsurance Benefits (Worker's Compensation) are provided in accordance withthe. requirements of State Law. Special Note: California Labor Code Sections4650, for Miscellaneous Employees; and 4850, for Public Safety Employees,specifically addresses entitlement for paid time off work when disabled due to jobinjury. This area is addressed more extensively in the City of Los Banos SickLeave Policy, Division 5-B.

Deferred Compensation: The City shall provide the opportunity for entitledemployees to participate, at their own expense, in a Deferred CompensationProgram. This area i~ addressed more extensively in Council Resolution No.2297; Deferred Compensation Plan.

Group Continuation of Health and Life Insurance: Federal Legislation (P.L. 99272, the Consolidated Omnibus Budget Reconciliation Act - COBRA) requiresagencies with 20 or more employees to continue health care coverage forterminated employees and for widows, ex-spouses, and dependents ofemployees for 18 to 36 months for certain qualifying events. Such benefits are

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DIVISION 5

provided at the expense of the employee or entitled relative or dependent. Thisarea is addressed more extensively in the PERS Group Continuation Plan.

h. Tuition Reimbursement: Subject to administrative approval, the City shallreimburse entitled employees for the cost of tuition, registration, books, parkingfees, and miscellaneous supplies, after successful completion of approvedcollege or university courses. This area is more extensively addressed in theCity of Los Banos Tuition Reimbursement Policy; Division 5-A.

i. Dental and Vision Care:

1. Basic Plan - The City shall provide entitled employees and theirimmediate families with a City funded Dental and Vision Care Plan; inaccordance with provisions established by Council Resolution No. 2314.Special Note: New employees are not covered by this benefit during thefirst six (6) months of their employment.

2. Effective with FY 1997-1998: All Regular Job Classifications are entitledto a maximum of $875 for one year and any unused portion may becarried over to a maximum of $1,750 in succeeding years.

j. Sick Leave Benefits: Sick Leave, with full salary and benefits, shall be providedto all entitled employees in accordance with the guidelines set forth in the City ofLos Banos Sick Leave Policy; Division 5-B.

k. VaCation Leave Benefits: Entitled employees shall be eligible for annualVacation Leave with full salary and benefits in accordance with the guidelines setforth in the City of Los Banos Vacation Leave Policy; Division 5-C.

I. Holiday Leave Benefits: Holiday Leave, with full salary and benefits, is providedto all entitled employees in accordance with the guidelines set forth in the City ofLos Banos Holiday Leave Policy; Division 5-D.

m. Education Incentive Pay: All Regular City of Los Banos Employees are entitledto receive Educational Incentive Pay in addition to their regular monthly salary.See City of Los Banos Education Incentive Policy for specific guidelines; Division5-G.

n. Bilingual Incentive Pay: All RegUlar City of Los Banos Employees are entitled toreceive Bilingual Incentive Pay in addition to their regular monthly salary. SeeCity of Los Banos Education Incentive Policy for specific guidelines; Division 5-K.

o. Cafeteria Plan: Effective 7/1/00, the City will pay administrative fees required forall Regular Employees to participate in a qualified Cafeteria Plan as providedunder IRS Code Section 125. Employees interested in participating in theCafeteria Plan can set aside pretax dollars to pay for health care expenses notcovered under any other medical, dental or vision plan and dependent careexpenses for a child's day care, extended care, after-school care or an elderlyparent's or incapacitated dependent assistance.

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Sec. 506 BENEFITS PROVIDED TO ALL REGULAR EMPLOYEES: EXCEPTMANAGERS AND MIDDLE MANAGERS

a. Compensatory Time Off: All Regular employees (except those classified asManagement or Middle Management) shall, at their choice, be permitted toaccrue Compensatory Time Off in lieu of receiving overtime pay for hoursworked in excess of normal duty assignments. See City of Los BanosCompensatory Time Off Policy for specific guidelines governing this practice;Division 5-E.

b. Overtime Compensation: All Regular Employees (except those classified asManagement or Middle Management) shall be entitled. to OvertimeCompensation in accordanee with the guidelines set forth in the City of LosBanos Overtime compensation Policy; Division 5-F.

Sec. 50? BENEFITS PROVIDED TO PUBLIC SAFETY DEPARTMENTEMPLOYEES ONLY

a. Uniform Purchase and Replacement: In accordance with current laboragreements, the City shall provide all required uniforms and safety equipment, atno cost to the employee. Special Note: The Chief of P~lice shall be the soleauthority for determining the type of uniforms and equipment to be purchasedand utilized.

Sec.50B BENEFITS PROVIDED TO ONLY CERTAIN DEPARTMENT OF PUBLICSAFETY EMPLOYEES

a: Canine Handlers/Police

1. Canine Handler/Police Officers; Special Pay

Effective July 1, 1992, Police Officers who serve as Canine Handlers oras the designated Canine Supervisor shall be paid $125.00 per month.The purpose of this special pay is to provide appropriate compensation fortime spent on training functions and/or off duty care of their animal.Except for this special monthly pay, no additional compensation will beprovided for time spent in training functions, supervision of handlers, or offduty care of animals.

2. Canine Handler/Supervisor; Special Pay

Effective July 1, 1992, Police Sergeants who serve as Canine Handlers oras the designated Canine Supervisor shall be paid $125.00 per month.The purpose of this special pay is to provide appropriate compensation fortime spent on training functions ~md/or off duty care of their animal.Except for this special monthly pay, no additional compensation will beprovided for time spent in training functions, supervision of handlers, or offduty care of animals.

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DIVISION 5

b. Special Pay/Police

1. Investigators; Special Pay

The purpose of this special pay is to provide appropriate compensation forthe unique and demanding work schedule required of Police Investigators.Effective July 1, 2005 Police Officers/Sergeants who serve in the Jobassignment of Investigator shall be compensated, by administrativedirective, as follows:

Step 1 - 5% above regular salaryStep 2 - 7%% above regular salary

2. Officer in Charge (OIC) Patrol; Special Pay

Officer in Charge (OIC) Patrol assignments shall be made by the PoliceChief. Compensation shall be $150 a month.

OICs will be a temporary assignment and serve at the direction of thePolice Chief. There will be no maximum term limit. The total number ofOICs will be based upon Department needs. Individuals working underspecial assignment will in most cases be removed from OIC status. OICsmust volunteer to adjust heir shift based on department needs. ThePolice Chief will attempt to maintain one (1) OIC per patrol shift.

3. Field Training Dispatchers; Special Pay

Effective November 1, 2007 Dispatchers who conduct filed training shallreceive a salary differential of two and one-half percent (2.5%) for FieldTraining Dispatchers for time spent training only. Field Training Dispatcherassignments shall be made by the Police Chief.

c. Certificate Pay/Police and Fire

1. Effective July 1, 2005, all classifications in the Police Department whohave been nominated or approved by Chief of Police shall be entitled toreceive the following compensation when they have been awarded andhold the specified California Commission on Peace Officers StandardsCertificate (P.O.S.T. Certificate):

$75 per month for a P.O.S.T. Intermediate Certificate, or$150 per month for a P.O.S.T. Advanced Certificate, or$200 per month for a P.O.ST. Supervisory Certificate

2. Effective July 1, 2005, Fire Fighters shall be entitled to receive thefollowing compensation when they have been awarded and hold thespecified State of California Fire Fighter Certificates as follows:

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$50 per month for a Fire Fighter II - Intermediate Certificate, or$100 per month for a Fire Officers - Advanced Certificate

3. Effective November 1, 2007 employee classifications identified in the LosBanos Police Dispatchers/Community Services Officers AssociationMemorandum of Understanding shall be entitled to receive the followingcompensation when they have been awarded and hold the specifiedDispatchers Certificates as follows:

$50 per month for Dispatcher Training Certificate$50 per month for Basic Dispatchers Certificate$50 per month for Intermediate Dispatchers Certificate$50 per month for Advanced Dispatchers Certificate

Not to exceed $200 per month for any combination of the above.

d. Uniform Cleaning/Police and Fire

The City shall pay for cleaning of uniforms, at City approved cleaners, inaccordance with the following guidelines:

1. Uniformed Administration Personnel (Police): Police Sergeants, PoliceOfficers; Two (2) shirts and two (2) trousers each work week; and One (1)jacket each calendar month:

2. Police Dispatcher/Community Services Officer: Two (2) shirts and two (2)skirts (or pants) per workweek and one (1) item of outerwear and (1) tieone (1) time each calendar month. The Police Department will supply,and replace as needed, three (3) sets of the Department-required uniform.

3. Fire Department employees who are working a fifty-six (56) hourworkweek shall be issued a minimum of seven (7) work uniforms eachcalendar month.

4. Fire Department employees who are working a forty (40) hour workweekshall be issued a minimum of eleven (11) work uniforms each calendarmonth.

e. Special Services Officers (Corporals); Special Pay

In accordance with past practices established by Council on July 1, 1990, PoliceOfficers who are assigned as Special Services Officers (Corporals) shall becompensated $25.00 per month above their current pay step while serving in thiscapacity. As approved by Council, the Chief of Police shall have the soleauthority to assign ,not more than three (3) Police Officers as Special ServicesOfficers. The Chief of Police shall provide written notification to the FinanceDirector and City Manager when officers are assigned or removed from theassignment as Special Services Officers.

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f. Special Fire Prevention/Code Enforcement Incentive

The purpose of this incentive pay is to provide appropriate compensation for theunique and demanding work schedule required of Fire Prevention/CodeEnforcement Officers. Effective July 1, 2005 Fire Fighters who serve in the Jobassignment of Fire Prevention/Code Enforcement Officer shall be compensated,by administrative directive, at 5% above regular salary.

g. Lateral Transfer Incentive Pay/Police

Effective September 18, 2002, the City Council established Lateral TransferIncentive Pay not to exceed $3,000. The Police Chief will have sole authority tooffer the pay incentive to lateral transfer police officer applicants as an incentivefor employment with the Los Banos Police Department. This offer may varybased on the previous experience of the applicant. This incentive pay could alsobe used to pay for a police academy loan or relocation costs.

The Police Chief shall provide written notification to the Finance Director and CityManager when a Police Officer is to receive the Lateral Transfer Incentive Pay.

Sec. 509 BENEFITS PROVIDED FOR CERTAIN PARTICIPATING EMPLOYEES

State Disability Insurance: The City allows for participation in the State DisabilityInsurance Program (SDI) for those employee groups who desire such option. Paymentof SDI premiums is the responsibility of participating employees. See City of Los BanosState Disability Income (SDI) Policy for specific employee groups currently involved inthis program and clarification of the City's position with regard to their participation;Division 5-H.

Sec. 510 BENEFITS PROVIDED TO ONLY CERTAIN PUBLIC WORKSEMPLOYEES.

a. Certificate PaylWater & Wastewater Division Employees

1. Effective July 1, 1999, Public Works employees shall be entitled toreceive the following compensation when they have been awarded andhold the specified certificate issued by the State of California, Departmentof Health Services WaterlWastewater_Treatment; a) $50.00 per month forGrade II, and b) $25.00 per month for Grade I.

2. Effective July 1, 2001, Public Works employees shall be entitled toreceive the following compensation when they have been awarded andhold the specified certificate issued by the State of California, Departmentof Health Services Water Distribution; a) $25.00 per month for Grade II,and b) $50.00 per month for Grade III.

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3. Employees holding these certificates may be simultaneouslycompensated for a) Water Treatment and Water Distribution Certificates,or b) Wastewater Treatment and Water Distribution Certificates.Employees holding these certificates shall not be simultaneouslycompensated for Water Treatment and Wastewater Treatmentcertificates.

4. Compensation shall not exceed $100 per month for any combination ofcertificates.

5. In order to continue to receive this benefit certified employees will berequired to submit proof of re-certification to the City Manager as soon asit is issued.

b. Applicator Certificate & License Pay/Parks & Streets Division Employees

1. Effective July 1, 2002, Public Services employees shall be entitled toreceive the following compensation when they have been awarded andhold the specified certificates or license as issued by the State ofCalifornia, Department Pesticide Regulation; (A) $50.00 per month forPesticide License, (8) $25.00 per month for a Qualified ApplicatorCertificate, and (C) $25.00 per month for each additional categoryendorsement, maximum three (3) categories will be allowed and/orcompensated for.

2. Employees holding these certificates and/or licenses can be compensatedfor (A) Qualified Applicator License, or (8) a Qualified ApplicatorCertificate. In no case shall they be compensated for both. Categorycompensation shall be limited to the following categories, 8-LandscapeMaintenance, C-Right of Way, D-Plant Agriculture, F-Aquatic, K-HealthRelated.

3. Compensation shall not exceed $100 per month for any combination oflicenses/certificates.

4. In order to remain eligible for compensation, Certificated/Licensedemployees shall be required to submit proof of certificate or license to theHuman Resources Director and department head as soon as it is issued.In addition employees shall be required to maintain there licenses and/orcertificates as required by the State of California Department of PesticideRegulation in order to be eligible for continued compensation. Proof ofcurrent valid licenses or certificates shall be submitted annually.

c. Arborist Certificate Pay

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1.

Sec. 511

Effective July 1,2007, certain Public Works employees shall be entitled toreceive the following compensation when they have been awarded andhold an Arborist Certificate issued by the International Society ofArboricultUre: $200.00 per month.

BENEFITS PROVIDED FOR CERTAIN CITY HALL EMPLOYEES.

a. Notary Public Certificate Pay

1. Effective July 1, 2005, certain City Hall employees shall be entitled toreceive the following compensation when they have been awarded andhold a Notary Public certificate issued by the State of California,Department of Secretary of State: $100.00 per month.

2. The number of persons will be limited to one (1) from each of the followingdepartments at City Hall: Planning, Finance, and two (2) fromAdministration.

3. Employees receiving the Notary Public Certificate Pay will be required tonotarize documents when requested by the public or City staff duringnormal business hours.

c. Certified Municipal Clerk Certificate Pay

1. Effective July 1, 2007, certain City Hall employees shall be entitled toreceive the following compensation when they have been awarded aCertified Municipal Clerk (CMC) Certificate and Designation from theInternational Institute of Municipal Clerks (IIMC): $100.00 per month.

Sec. 512 BENEFITS PROVIDED FOR MANAGEMENT AND MIDDLEMANAGEMENT EMPLOYEES ONLY.

a. Admin Leave for Management Employees. The following Managementemployees, who are not entitled to accrl)e compensatory time off or receiveovertime pay for hours worked in excess of regular duty time, shall be entitled toten (10) work days off, with full salary and benefits, during every Fiscal Year ofemployment in such position:

City ManagerPu~lic Works Director/City EngineerPolice ChiefFire ChiefChief Financial OfficerPlanning DirectorPlanning ManagerRedevelopment ManagerInformation Technology ManagerHuman Resources Director

5-11


New Management employees hired after the July 1st accrual date will be proratedaccordingly. If Admin Leave is not taken during the Fiscal Year it was earned, itwill not be carried over and the employee will lose his/her right to the unuseddays. Further, a Management employee who leaves the City employment shallnot be compensated for any unused Admin Leave to which he/she wouldotherwise have been entitled.

b. Admin Leave for Middle Management Employees. Middle Managementemployees, who are not entitled to accrue compensatory time off or receiveovertime pay for hours worked in excess of regular duty time, shall be entitled tofive (5) work days off, with full salary and benefits, during every Fiscal Year ofemployment in such position. New Middle Management employees hired afterthe July 1st accrual date will be prorated accordingly. If Admin Leave is not takenduring the Fiscal Year it was earned, it will not be carried over and the employeewill lose his/her right to the unused days. Further, a Middle Management?mployee who leaves the City employment shall not be compensated for anyunused Admin Leave to which he/she would otherwise have been entitled.

c. Please note: New Management and Mid Management employees hired after theJuly 1st accrual date will be prorated accordingly. If Admin Leave is not takenduring the Fiscal Year it was earned, it will not be carried over and the employeewill lose his/her right to the unused days. Further, a Management and MidManagement who leaves the City employment shall not be compensated for anyunused Admin Leave to which they would otherwise have been entitled.

Sec. 513 BENEFITS PROVIDED FOR MAYOR AND CITY COUNCIL MEMBERS

a. Cell Phone Allowance

1.

Sec. 514

Effective July 1, 2007, the Mayor and City Council Members shall beentitled to receive a monthly cell phone allowance in the amount of$75.00. Proof of a current cell phone contract plan is to be provided toreceive cell phone allowance.

BENEFITS NOT COVERED IN THIS DIVISION STATEMENT

Any employee benefits not covered in this Division that are required to be offered underprovision of State or Federal Law or in conformity with an existing labor agreement,shall be provided.

5-12

EcrsBano.sAt the Crossroads oJCaltf()f'tda

TO:

FROM:

DATE:

SUBJECT:

Agenda Staff Report

Mayor & Council .v

MelindaWall, Chief Financial Offi~~December 17,2008 )

CalPERS Resolution to Memorialize City of Los Banos' Pick-up of theEmployee Portion of their Retirement Contribution and a Resolution forEmployer Paid Member Contributions.


Recommendation:

Adopt the Resolution of the City of Los Banos for Employer Pick-up and the resolutionfor employer paid member contributions as required by CalPERS and the InternalRevenue Code.

Background:

The City of Los Banos currently pays for the Employee's portion of the requiredcontribution through CalPERS except for the City Manager as of January 1,2008.CalPERS has requested that all agencies memorialize this policy in writting.

Discussion:

There are two resolutions that will need to be adopted. A resolution for employer pickup and a resolution for employer paid member contributions.

The resolution for employer paid member contributions documents the fact that the Cityof Los Banos pays for both the employer and employee contributions for the CaIPERS.The resolution also states that the City pays CalPERSdirectly for the employee's

contribution. This allows for tax deferment to the employee and covers all employeesexcept for the City Manager.

The resolution for employer pick-up documents the fact that the City of Los Banos paysfor the employee and employer contributions for the CalPERS for specific groups orclasses. Since the City Manager has elected to pay for the employee portion, thisresolution would recoginize that he is paying for his portion of retirement benefits.

If the City makes any changes to this policy in the future, another resolution would comeback to be ratified with the proposed changes.

Fiscal Impact:

No fiscal impact.

Reviewed by:

Ste~ clwJanager

Attachments:

CalPERS Circular letterResolution for Employer Pick-upResolution for Employer Paid Member Contribution

ACalPER5

P.O. Box 942709Sacramento, CA 94229-2709888 CalPERS (or 888-225-7377)Telecommunications Device for the DeafNo Voice (916) 795-3240www.calpers.ca.gov

Date:Reference No.:

Circular Letter No.:Distribution:

Special:

October 3, 2008

200-049-08VI,XII,XVI

Circular Letter

TO: PUBLIC AGENCIES, COUNTY SUPERINTENDENT OF SCHOOLS,SCHOOL DISTRICTS

SUBJECT: EMPLOYER "PICK-UP" - REVENUE RULING 2006-43DECEMBER 31, 2008 DEADLINE FOR ACTION

ATTENTION: FINANCE DIRECTORS, HUMAN RESOURCE DIRECTORS

This Circular Letter is being sent to advise employers of Revenue Ruling 2006-43concerning the pick-up of employee contributions to California Public EmployeesRetirement System (CaIPERS), and of actions that an employer may be required totake before December 31, 2008 to ensure compliance with pick-up requirements.

BACKGROUND AND PURPOSE

Internal Revenue Code (lRC) Section 414(h)(2) allows public agencies and schoolemployers to designate required employee contributions as being "picked-up" bythe employer and treated as employer contributions for tax purposes. The effect of apick-up is to defer tax on employee contribution amounts until the member retires andreceives retirement benefits, or separates from employment and takes a refund ofcontributions. Absent the 414(h)(2) provision applicable to governmental plans,employee contributions to a defined benefit pension plan qualified under Section 401 (a)would automatically be after-tax contributions (e.g. taxable income to the employee atthe time the contribution was made).

Since the early 1980s, CalPERS has taken steps to ensure that contracting agencyand school employers have adopted and submitted to CalPERS appropriate writtenevidence of pick-ups prior to reporting tax-deferred member contributions to CaIPERS.This Circular Letter is being sent as a reminder of the federal tax reportingrequirements, to encourage each contracting agency and school employer who reportstax-deferred member contributions to review their documents and, if necessary, adoptconforming documentation prior to the deadline set by Revenue RlJling 2006-43. Toview the ruling, visit CalPERS online.

Circular Letter # 200-049-08

REVENUE RULING 2006-43

-2- October 3, 2008

Revenue Ruling 2006-43 provides, in general, that an employee contribution will not betreated as "picked-up" under IRC 414(h)(2) unless:

(1) The employer specifies that the contributions, although designated asemployee contributions, arebeing paid by the employer (this action must bememorialized in writing), and

(2) The employer does not permit participating employees to opt out of the pickup or to receive the contributed amounts directly instead of having them paid bythe employer to the plan.

Revenue Ruling 2006-43 allows employers who do not have written evidence of a pickup, but their actions show thatthey intended to establish and carry out a pick-up, to betreated as meeting the requirements of 414(h)(2) for past pre-tax contributions if theemployer takes formal action in writing prior to December 31, 2008 with respect tofuture picked-up contributions. If formal action is not taken prior to December 31,2008,only contributions taken after the written documentation is in place may be treated aspicked-up.

WRITTEN DOCUMENTATION

Many of you offer a pick-up of employee contributions under a resolution approved bythe IRS in a private letter ruling issued to CalPERS on December 6, 1985, (PLR8609084). If your agency has adopted the approved resolution to implement 414(h)(2)pick-ups, you may continueto rely on that ruling and need not adopt a new resolution.This approved form, which is Sample E---Resolution for Employer Pick-up can beviewed at CalPERS online. Ifyou have not previously sent a copy of the resolution tous, or if you did not complete Sample E, but have other written documentation, pleasesend a copy of your document or resolution to us immediately. ,

After 1985, CalPERS provided additional pick-up resolutions for adoption bycontracting agencies that distinguishes whether the pick-up was to be actually paid bythe employer or by the employee. When an employer pays the employeecontributions, it is referred to as Employer Paid Member Contributions (EPMC). Theemployer may also report the value of EPMC as special compensation. Contractingagencies that adopted any of these resolutions were requested to submit theresolutions to CaIPERS. Samples of Resolutions A through D can be viewed atCalPERS online. You may continue to rely on these resolutions but you should reviewthem and validatethatthe resolution covers all of the employees whose contributionsare reported as tax-deferred. If you have not previously sent a copy of the resolution tous, please do so immediately.

Circular Letter # 200-049-08 -3- October 3, 2008

CALPERS NEW BUSINESS ENVIRONMENT

CalPERS is in the process of building and installing a new business reporting system.One of the design features will enhance CalPERSability to maintain accurate and up todate information about contracting agency and school employer pick-ups. As a way ofensuring that our system will accurately record your agency's pick-up provision,

\CalPERS requires all affected agencies to provide a copy of their existing or futurepick-up resolutions or other written documentation. This will ensure ongoingcompliance with federal tax reporting requirements. The new system will validate thatyou have documentation on file with CalPERS before accepting tax-deferred membercontributions. If documentation is not on file, your records will be rejected and will beheld until the appropriate documentation is received.

CONCLUSION

If you are submitting tax-deferred contributions on behalf of your members, we requestthat you review your files for documentary evidence authorizing such employer pick-upof employee contributions. If you do not have evidence, please take steps to have yourgoverning board adopt an appropriate resolution prior to December 31 ! 2008.

Please send a copy of your pick-up documentation to:

CalPERSEmployer Services DivisionCompensation Review UnitP.O. Box 942709Sacramento CA 94229-2709

If you have any questions, please call the Employer Contact Center at 888 CalPERS or(888225-7377).

Lori McGartland, ChiefEmployer Services Division

Visit the CalPERS website at www.calpers.ca.gov (2008 Circular Letters) for moreinformation on the following:

1 - Revenue Ruling 2006-432 - Sample Resolution E3 - Sample Resolutions A - D

Revenue Ruling 2006-43

Table of Contents

• ISSUES• FACTS• LAW AND ANALYSIS• HOLDING• TRANSITION RELIEF FOR PRE-EXISTING "PICK-UPS"• EFFECT ON OTHER GUIDANCE• DRAFTING INFORMATION

Government pick-up plans; employer contributions; income tax; prospective application.This ruling describes the actions required for a state or its political subdivisions, etc., to "pick-up"or treat certain contributions as employer contributions to a plan qualified under section 401 (a) ofthe Code. If certain criteria are met, this ruling will be applied prospectively. Rev. Ruls. 81-35, 8136, and 87-10 amplified and modified.

ISSUES

What actions are required in order for a State or political subdivision thereof, or an agency orinstrumentality of any of the foregoing, to "pick up" employee contributions to a plan qualifiedunder § 401 (a) of the Internal Revenue Code so that the contributions are treated as employercontributions pursuant to § 414(h)(2)?

FACTS

Employer M is a political subdivision of State N. Employer M participates in Plan A, a definedbenefit pension plan qualified under § 401 (a) and established by State N to provide retirementbenefits to eligible employees of State N and any political subdivision of State N. Plan A requireseach participating employee to make employee contributions to Plan A equal to a specifiedpercentage of the participant's salary. These amounts, designated as employee contributionsunder § 414(h)(1), are deducted from the participant's salary. State N statutes governing Plan Apermit any political subdivision to provide that the employee contributions will be paid by theemployer inorder to be picked up and treated as employer contributions under § 414(h)(2). OnMarch 1, 2006, Employer M amends its governing laws to provide that the amounts designatedas employee contributions under Plan A will be paid by Employer M for all of Employer M'semployees in order to be treated as employer contributions under§ 414(h)(2), as permitted underthe statutes governing Plan A. The amendment is in writing, was adopted by persons authorizedto amend Employer M'S governing laws, and is effective for periods on or after April 1, 2006.Employer M, thereafter, treatsthe amounts as employer contributions, instead of as beingemployee contributions, for federal income tax purposes and dOes not include these amounts inthe participating employees' gross income.

- 2-

LAW AND ANALYSIS

Section 414(h)(1) provides that any amount contributed to a qualified plan is not treated as havingbeen made by. the employer if it is designated as an employee contribution.

Section 414(h)(2) provides a special rule for qualified plans established by a State government orpolitical subdivision thereof, or by any agency or instrumentality of the foregoing. Under this rule,contributions, although designated as employee contributions, are nevertheless treated asemployer contributions if the contributions are picked up by the employing unit.

Section 401 (k) provides the rules relating to cash or deferred elections. Section 1.401 (k)-1 (a)(1)of the Income Tax Regulations provides that a plan, other than a profit-sharing, stock bonus, preERISA money purchase pension or rural cooperative plan, does not satisfy the requirements of§ 401 (a) if the plan includes a cash or deferred arrangement. Thus, a qualified defined benefitplan is not permitted to include a cash or deferred arrangement.

Section 1.401 (k)-1(a)(3) generally defines a cash or deferred election as any direct or indirectelection (or modification of an earlier election) by an employee to have the employer (i) providean amount that is not currently available to the employee in the form of cash or some othertaxable benefit, or (ii) contribute an amount to a trust or provide an accrual for a plan deferring thereceipt of compensation.

Rev. Rul. 77-462, 1977-2 C.B. 358, addresses the income tax treatment of contributions pickedup by the employer within the meaning of § 414(h)(2). In Rev. Rul. 77-462, the employer schooldistrict agreed to "pick up" and pay the required contributions of the eligible employees under theplan. The revenue ruling holds that the contributions picked up by the school district are excludedfrom the gross income of employees until such time as they are distributed to the employees.

Rev. Rul. 81-35,1981-1 C.B. 255, and Rev. Rul. 81-36,1981-1 C.B. 255, address certainrequirements for contributions to be picked up by an employer within the meaning of § 414(h)(2).These revenue rulings establish that the following criteria must be satisfied: (i) the employer mustspecify that the contributions, although designated as employee contributions, are being paid bythe employer in lieu of contributions by the employee; and (ii) the employee must not be given theoption of choosing to receive the contributed amounts directly instead of having them paid by theemployer to the plan.Rev. Rul. 81-35 and Rev. Rul. 81-36 apply even if the employer picks up thecontributions through either a reduction in salary or an offset against future salary increases.

Rev. Rul. 87-10,1987-1 C.B. 136, addresses when contributions designated as employeecontributions (designated employee contributions) under § 414(h)(1) to a qualified planestablished by a State government (including a political subdivision thereof, or any agency orinstrumentality of the foregoing) are excludable from the gross income of the employee. Theruling concludes that, to satisfy the criteria set forth in Rev. Rul. 81-35 and Rev. Rul. 81-36, thegovernmental action necessary to effectuate the "pick-up" must be completed before the period towhich such contributions relate. Thus, designated employee contributions to a qualified planestablished by a State government are excluded from gross income as "pick-up" contributionsthat are treated as employer contributions only to the extent the contributions relate tocompensation for services rendered after the date of the last governmental action necessary toeffectuate the "pick-up."

-3-

Based on the foregoing, a contribution to a qualified plan established by a State government willnot be treated as picked up by the employing unit under § 414(h)(2) unless the employing unit:

(1) Specifies that the contributions, although designated as employee contributions, are beingpaid by the employer. For this purpose, the employing unit must take formal action to provide thatthe contributions on behalf of a specific class of employees of the employing unit, althoughdesignated as employee contributions, will be paid by the employing unit in lieu of employeecontributions. A person duly authorized to take such action with respect to the employing unitmust take such action. The action must apply only prospectively and be evidenced by acontemporaneous written document (e.g., minutes of a meeting, a resolution, or an ordinance).

(2) Does not permit a participating employee from and after the date of the "pick-Up" to have acash or deferred election right (within the meaning of § 1.401(k)-1 (a)(3)) with respect todesignated employee contributions. Thus, for example, participating employees must not bepermitted to opt out of the "pick-up", ,or to receive the contributed amounts directly instead ofhaving them paid by the employing unit to the plan.

Employer M has taken formal action which was memorialized in a contemporaneous writing thatprovides that it will "pick up" all prospective contributions for the Employer M employees who arerequired to contribute to Plan A. Further, employees are required to participate in Plan A, do nothave the option of choosing to receive the contributed amounts directly, and may not make acash or deferred election with respect to such amounts. Employer M has met the requirements tohave the designated employee contributions under Plan A picked up and treated as employercontributions pursuant to § 414(h)(2). Thus, contributions made to Plan A are not includible in aparticipant's gross income until distributed under § 402.

This revenue ruling applies only for federal income tax purposes. See §§ 3121 (a)(5)(A) and3121 (v)(1 )(B) of the Federal Insurance Contributions Act (FICA) for the treatment of amountstreated as an employer contributions under § 414(h)(2).

HOLDING

Because an authorized person has taken formal action in writing prospectively to have theemploying unit pay previously designated employee contributions to a § 401 (a) qualified plan,appropriate actions have been taken for the contributions to be picked up by the employing unitand treated as employer contributions pursuant to § 414(h)(2).

TRANSITION RELIEF FOR PRE-EXISTING "PICK-UPS"

Under the authority of § 7805(b)(8), the Service will not treat any plan that on or before August28, 2006, includes designated employee contributions that were intended to be picked up asemployer contributions pursuant to § 414(h)(2) as failing to meet the requirements of such sectionprior to January 1, 2009, solely on account of the failure to satisfy the requirement that the "pickup" be pursuant to a formal action, by a person duly authorized to take such action with respect tothe employing unit, that is evidenced by contemporaneous writing, but only if the followingconditions are satisfied: (1) the employing unit has taken contemporaneous action evidencing anintent to establish a "pick-up" (e.g., provided information to employees relating to theestablishment of the "pick-up") and has operated the plan accordingly; and (2) the employing unittakes formal action in writing prior to January 1, 2009, with respect to future coiltributions to meetthe requirements set forth above in paragraph (1) of Law and Analysis in this revenue ruling.

- 4-

The relief provided above for "pick-ups" implemented prior to August 28, 2006, applies only if theactions taken otherwise complied with Rev. Rul. 81-35, Rev. Rul. 81-36, and Rev. Rul. 87-10, andonly if the employing unit has not reported the contributions as wages subject to federal incometax withholding from and after the date of implementation of the intended "pick-up".

In addition, under the authority of § 7805(b)(8), this revenue ruling does not modify or revoke anyprivate letter ruling issued to any taxpayer prior to August 28, 2006. See § 601.201 (1)(4).

EFFECT ON OTHER GUIDANCE

Rev. Rul. 81-35, Rev. Rul. 81-36, and Rev. Rul. 87-10 are amplified and modified.

DRAFTING INFORMATION

The principal drafter of this revenue ruling is Kathleen Herrmann of the Employee Plans, TaxExempt and G.overnment Entities Division. For further information regarding this revenue rUling,please contact the Employee Plans' taxpayer assistance telephone service at 1-877-829-5500 (atoll-free number) between the hours of 8:30 a.m. and 4:30 p.m. Eastern Time, Monday throughFriday. Ms. Herrmann may be reached at (202) 283-9888 (not a toll-free number).

RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS

RESOLUTION FOR EMPLOYER PICK·UP

WHEREAS, the (Name of Agency) has theauthority to implement the provisions of section 414(h)(2) of the Internal Revenue Code(IRC); and '

WHEREAS, the Board of Administration of the Public Employees' Retirement System adoptedits resolution regarding section 414(h)(2) IRC on September 18,1985; and

WHEREAS, the Internal Revenue Service has stated in December 1985, that theimplementation of the provisions of section 414(h)(2) IRC pursuant to the Resolution of theBoard of Administration would satisfy the legal requirements of section 414(h)(2) IRC; and

WHEREAS, the (Name of Agency) hasdetermined that even though the implementation of the provisions of section 414(h)(2) IRCis not required by law, the tax benefit offered by section 414(h)(2) IRC should be providedto its employees who are members of the Public Employees' Retirement System:

NOW, THEREFORE, BE IT RESOLVED:

I. That the (Name of Agency) will implement the provisionsof section 414(h)(2) Internal Revenue Code by making employee contributions pursuant toCalifornia Government Code section 20691 to the Public Employees' Retirement System onbehalf of its employees who are members of the Public Employees Retirement System."Employee contributions" shall mean those contributions to the Public Employees'Retirement System which are deducted from the salary of employees and are credited toindividual employee's accounts pursuant to California Government Code section 20691.

II. That the contributions made by the (Name of Agencv) to the Public Employees'Retirement System, although designated as employee contributions, are being paid by the

(Name of Agency) in lieu of contributions by the employees whoare members of the Public Employees' Retirement System.

III. That employees shall not have the option of choosing to receive the contributed amountsdirectly instead of having them paid by the (Name of Agency) to the PublicEmployees' Retirement System.

IV. That the (Name of Agency) shall pay to the PublicEmployees' Retirement System the contributions designated as employee contributionsfrom the same source of funds as used in paying salary.

V. That the amount of the contributions designated as employee contributions and paid by the(Name of Agency) to the Public Employees' Retirement

System on behalf of an employee shall be the entire contribution required of the employeeby the Public Employees' Retirement Law (California Government Code sections 20000, etseq.).

VI. That the contributions designated as employee contributions made by (Name ofAgency) to the Public Employees' Retirement System shall be treated for all

purposes, other than taxation, in the same way that member contributions are treated bythe Public Employees' Retirement System.

RESOLUTION FOR EPMC-RESOLUTION FOR EMPLOYER PAID MEMBER CONTRIBUTIONS

WHEREAS, the governing body of the (Name of Agency) has the authority to implementGovernment Code Section 20691 ;

WHEREAS, the governing body of the (Name of Agencv) has a written labor policy or agreementwhich specifically provides for the normal member contributions to be paid by the employer;

WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by thegoverning body of the (Name of Agency) of a Resolution to commence said EmployerPaid Member Contributions (EPMC);

WHEREAS, the governing body of the (Name of Agency) has identified the following conditionsfor the purpose of its election to pay EPMC:

• This benefit shall apply to all employees of (Membership Category)OR (Group or Class) .

• This benefit shall consist of paying (Percent) of the normal member contributions asEPMC.

• The effective date of this Resolution shall be (Date) .

NOW, THEREFORE, BE IT RESOLVED that the governing body of the (Name of Agency) elects topay EPMC, as set forth above.

BY

(Name of Official)

(Title of Official)

(Date adopted and approved)

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS TO TAX DEFER MEMBERPAID CONTRIBUTIONS

WHEREAS, the City of Los Banos has the authority to implement the provisionsof section 414 (h)(2) of the Internal Revenue Code (IRC); and

WHEREAS, the Board of Administration of the Public Employees' RetirementSystem adopted its resolution regarding section 414 (h)(2) IRC on September 18, 1985;and

WHEREAS, the Internal Revenue Service has stated in December 1985, that theimplementation of the provisions of section 414 (h)(2) IRC pursuant to the Resolution ofthe Board of Administration would satisfy the legal requirements of section 414 (h)(2)IRC: and

WHEREAS, the City of Los Banos has determined that even though theimplementation of the provisions of section 414 (h)(2) IRC is not required by law, the taxbenefit offered by section 414 (h)(2) IRC should be provided to its employees who aremembers of the Public Employees' Retirement System:

NOW, THEREFORE, BE IT RESOLVED:

I. That the City Council of the City of Los Banos does hereby implement theprovisions of section 414 (h)(2) Internal Revenue Code by making employeecontributions pursuant to California Government Code section 20691 to the PublicEmployees' Retirement System. "Employee contributions" shall mean thosecontributions to the Public Employees' Retirement System which are deductedfrom the salary of employees and are credited to individual employee's accountspursuant to California Government Code section 20691.

II. That the contributions made by the City of Los Banos to the Public Employees'Retirement System, although designated as employee contributions, are beingpaid by the City of Los Banos in lieu of contributions by the employees who aremembers of the Public Employees' Retirement System.

III. That employees shall not have the option of choosing to receive the contributedamounts directly instead of having them paid by the City of Los Banos to thePublic Employees' Retirement System.

1

IV. That the City of Los Banos shall pay to the Public Employees' Retirement Systemthe contributions designated as employee contributions from the same source offunds as used in paying salary.

V. That the amount of the contributions designated as employee contributions andpaid by the City of Los Banos to the Public Employees' Retirement System onbehalf of an employee shall be the entire contribution required by the employee bythe Public Employees' Retirement Law (California Government Code sections20000, et seq.).

VI. That the contributions designated as employee contributions made by the City ofLos Banos to the Public Employees' Retirement System shall be treated for allpurposes, other than taxation, in the same way that member contributions aretreated by the Public Employees' Retirement System.

The foregoing Resolution was introduced at a regular meeting of the City Councilof the City of Los Banos held on the 17th day of December 2008, by Council Member___ who moved its adoption, which motion was duly seconded by Council Member___ and the Resolution adopted by the following vote:

AYES:NOES:ABSENT:

APPROVED:

Tommy Jones, Mayor

ATTEST:


2

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF LOS BANOS FOR EMPLOYER PAIDMEMBER CONTRIBUTIONS

WHEREAS, the governing body of the City of los Banos has the authority toimplement Government Code Section 20691; and

WHEREAS, the governing body of the City of los Banos has a written laborpolicy or agreement which specifically provides for the normal member contributions tobe paid by the employer; and

WHEREAS, one of the steps in the procedures to implement Section 20691 isthe adoption by the governing body of the City of los Banos of a Resolution tocommence said Employer Paid Member Contributions (EPMC); and

WHEREAS, the governing body of the City of los Banos has identified thefollowing conditions for the purpose of its election to pay EPMC:

This benefit shall apply to all employees of the following groups: PoliceOfficers, Firefighters, Sergeants, Dispatch/CSo., Miscellaneous, and shallapply to the Management Group with the exception of the City Manager.

This benefit shall consist of paying all of the normal member contributionsas EPMC.

The effective date of this Resolution shall be December 17, 2008.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of losBanos does hereby elect to pay EPMC, as set forth above.

The foregoing Resolution was introduced at a regular meeting of the City Councilof the City of los Banos held on the 17th day of December 2008, by Council Member___ who moved its adoption, which motion was duly seconded by Council Member___ and the Resolution adopted by the following vote:

AYES:NOES:ABSENT:

1

ATTEST:


2

APPROVED:

Tommy Jones, Mayor

LOS BanosAt.tfte Crossroatls oJCaHforttia

TO:

FROM:

DATE:

Agenda Staff Report

Mayor & City Council Members andChairman & Redevelopment Agency Members

Elaine Post, Redevelopment Manager w(JDecember 17, 2008

SUBJECT: An Assignment And Substitution Agreement And Amended And RestatedProfessional Services Agreement For Professional Services Rendered By Beverly PriorArchitects For The Community Center

TYPE OF REPORT:

Recommendation:

Consent Ag~nda

City Council: Approve Resolution No. A Resolution Of The City Council OfThe City Of Los Banos Authorizing The City Manager To Execute An Assignment AndSubstitution Agreement and Amended And Restated Professional Services Agreement[Community Center Project]

Redevelopment Agency: Approve Resolution No. A Resolution Of TheRedevelopment Agency Of The City Of Los Banos Authorizing The Executive DirectorTo Execute An Assignment And Substitution Agreement And Amended And RestatedProfessional Services Agreement [Community Center Project]

Background:

Beverly Prior Architects entered into an Agreement on May 17, 2006 with the City of LosBanos to (i) conduct a Community Needs Assessment, (ii) conduct a Project FeasibilityAnalysis, (iii) prepare Preliminary Facility Plans and Sketches, (iv) prepare anImplementation Plan, and (v) prepare a Final Report related to a future CommunityCenter. On February 2, 2007 the City of Los Banos and Beverly Prior Architects

amended the scope of work to include a Master Plan Study for community facilities. OnOctober 11, 2007 the City solicited and received a proposal from Beverly PriorArchitects, and approved by Resolution No. 4938 the Proposed Work Plan andEstimated Fee submitted by the Beverly Prior Architects. On January 25, 2008 the Cityof Los Banos and Beverly Prior Architects entered into a First Addendum to the May2006 Agreement to expand the scope of work to include the Design of Phases 1 and 2and to include Construction Documents and Construction Administration for Phase 1 ofthe Community Center Project. On October 1, 2008 the Redevelopment Agencyapproved by Resolution No. 2008-11 the Proposed Work Plan and Estimated Feesubmitted by the Beverly Prior Architects on September 26, 2008 to includeConstruction Documents and Construction Administration for Phase 2 of the CommunityCenter Project for an amount not to exceed $172,000.00.

Discussion:

Pursuant to Resolution 2008-11 approving the Proposed Work Plan and Estimated Feesubmitted by the Beverly Prior Architects on September 26, 2008 to includeConstruction Documents and Construction Administration for Phase 2 of the CommunityCenter Project for an amount not to exceed $172,000.00 the Agency Staff has preparedthe appropriate amendment to the current professional services agreement with BeverlyPrior Architects to include the Phase 2 work plan and fee,

Additionally, the City's and Agency's legal counsel has recommended that the priorAgreement with Beverly Prior (the First Addendum) be formally assigned to TheRedevelopment Agency instead of the Agency reimbursing the City for the servicesrendered by Beverly Prior Architects. To date the Redevelopment Agency has beenpaying Beverly Prior and the formal assignment to the Redevelopment Agency clarifiesthe contractual relationship between the parties.

Approval by the City Council and the Redevelopment Agency will include the previouslyapproved Phase 2 work plan and substitute the Redevelopment Agency as theresponsible party for the services rendered by Beverly Prior Architects.

Fiscal Impact:

None. The expenditure of the additional $172,000.00 has already been approved bythe Agency by Resolution 2008-11 .

Reviewed by:

Attachments:

1. Resolution No. A Resolution Of The City Council Of The City Of Los BanosAuthorizing The City Manager To Execute An Assignment And Substitution Agreementand Amended And Restated Professional Services Agreement [Community CenterProject]

2. Resolution No. A Resolution Of The Redevelopment Agency Of The City OfLos Banos Authorizing The Executive Director To Execute An Assignment AndSubstitution Agreement And Amended And Restated Professional Services Agreement

3. Assignment And Substitution Agreement And Amended And Restated ProfessionalServices A reement [Community Center Project]

e Post, Redevelopment Manager

RESOLUTION NO. XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOSBANOS AUTHORIZING THE CITY MANAGER TO EXECUTE AN

ASSIGNMENT AND SUBSTITUTION AGREEMENTAND AMENDED AND RESTATED PROFESSIONAL SERVICES

-AGREEMENT[Community Center Project]

WHEREAS, Beverly Prior Architects entered into an Agreement on May 17, 2006 with theCity of Los Banos to (i) conduct a Community Needs Assessment, (ii) conduct a Project FeasibilityAnalysis, (iii) prepare Preliminary Facility Plans and Sketches, (iv) prepare an Implementation Plan,and (v) prepare a Final Report related to a future Community Center; and

WHEREAS, on February 2, 2007 the City of Los Banos and Beverly Prior Architects amendedthe scope of work to include a Master Plan Study for community facilities; and

WHEREAS, City solicited and received a proposal from Beverly Prior Architects, andapproved by Resolution No. 4938 the Proposed Work Plan and Estimated Fee submitted by theBeverly Prior Architects on October 11, 2007; and

WHEREAS, on January 25, 2008 the City of Los Banos and Beverly Prior Architects enteredinto a First Addendum to the May 2006 Agreement to expand the scope ofwork to include the Designof Phases 1 and 2 and to include Construction Documents and Construction Administration for Phase1 of the Community Center Project; and

WHEREAS, the Los Banos Redevelopment Agency has been paying for the services providedby Beverly Prior Architects under the First Addendum; and

WHEREAS, the City of Los Banos now desires to assign its rights and obligations under theFirst Addendum to the Redevelopment Agency of the City of Los Banos and the RedevelopmentAgency of the City of Los Banos now desires to accept the assignment of the City of Los Banos rightsand obligations under the First Addendum; and

WHEREAS, there will be no fiscal impact on the general fund; and

WHEREAS, the Agreement has been reviewed and has been approved by the City Attorney.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Los Banosdoes hereby approve the above mentioned Assignment and Substitution Agreement and authorizesthe City Manager to execute said Agreement, in the form presented herewith.

The foregoing Resolution was introduced at a regular meeting of the City Council of the Cityof Los Banos held on the __ day of 2008, by City Council Member XXXXX, whomoved its adoption, which motion was duly seconded by City Council Member XXXXXXX, andthe Resolution was adopted by the following vote:

AYES:NOES:ABSENT:

ATTEST:


APPROVED:

Tommy Jones, Mayor

RESOLUTION NO. XXXX

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITYOF LOS BANOS AUTHORIZING THE EXECUTIVE DIRECTOR TOEXECUTE AN ASSIGNMENT AND SUBSTITUTION AGREEMENT

AND AMENDED AND RESTATED PROFESSIONAL SERVICESAGREEMENT

[Community Center Project]

WHEREAS, Beverly Prior Architects entered into an Agreement on May 17, 2006 with theCity of Los Banos to (i) conduct a Community Needs Assessment, (ii) conduct a Project FeasibilityAnalysis, (iii) prepare Preliminary Facility Plans and Sketches, (iv) prepare an Implementation Plan,and (v) prepare a Final Report related to a future Community Center; and

WHEREAS, on February 2, 2007 the City of Los Banos and Beverly Prior Architects amendedthe scope of work to include a Master Plan Study for community facilities; and

WHEREAS, City solicited and received a proposal from Beverly Prior Architects, andapproved by Resolution No. 4938 the Proposed Work Plan and Estimated Fee submitted by theBeverly Prior Architects on October 11, 2007; and

WHEREAS, on January 25, 2008 the City of Los Banos and Beverly Prior Architects enteredinto a First Addendum to the May 2006 Agreement to expand the scope ofwork to include the Designof Phases 1 and 2 and to include Construction Documents and Construction Administration for Phase1 of the Community Center Project; and

WHEREAS, the Los Banos Redevelopment Agency has been paying for the services providedby Beverly Prior Architects under the First Addendum; and

WHEREAS, the City of Los Banos now desires to assign its rights and obligations under theFirst Addendum to the Redevelopment Agency of the City of Los Banos and the RedevelopmentAgency of the City of Los Banos now desires to accept the assignment of the City of Los Banos rightsand obligations under the First Addendum; and

WHEREAS, The Redevelopment Agency of the City of Los Banos and· Beverly PriorArchitects desire to further Amend and Restate the First Addendum, to among other things includeConstruction Documents and Construction Administration for Phase 2 of the Community CenterProject within the scope of work, on the terms and conditions as set forth in the Agreement.

WHEREAS, the Redevelopment Agency of the City of Los Banos has previously approved byResolution No. 2008-11 the Proposed Work Plan and Estimated Fee submitted by the Beverly PriorArchitects on September 26, 2008.

WHEREAS, Redevelopment Agency of the City of Los Banos desires to retain Beverly PriorArchitects to render professional services as described in the Proposed Work Plan and Estimated

Fee submitted by Beverly Prior Architects on October 11,2007 and September 26,2008, under theterms and conditions set forth in this Agreement.

WHEREAS, the Agreement has been reviewed and has been approved by theRedevelopment Agency Attorney.

NOW THEREFORE BE IT RESOLVED, that the Redevelopment Agency of the City ofLos Banos does hereby approve the above mentioned Assignment and Substitution Agreement andauthorizes the Executive Director to execute said Agreement, in the form presented herewith.

The foregoing Resolution was introduced at a regular meeting of the Redevelopment Agencyof the City of Los Banos held on the __ day of 2008, by Agency Member XXXXX,who moved its adoption, which motion was duly seconded by Agency Member :XXX:XX:XX, andthe Resolution was adopted by the following vote:

AYES:NOES:ABSENT:

APPROVED:

Tommy Jones, Chairman

ATTEST:

Lucille L. Mallonee, Secretary

ASSIGNMENT AND SUBSTITUTION AGREEMENTAND AMENDED AND RESTATED PROFESSIONAL SERVICES

AGREEMENT [Community Center Project]

This Assigrtment and Substitution Agreement and Amended and Restated Agreement (the"Agreement") is made this __ day of , 2008, by and among City of Los Banos(the "Assignor" or "City"), Los Banos Redevelopment Agency ("Assignee" or "Agency"),and Beverly Prior ("Consultant") with reference to the following facts:

RECITALS

A. Agency is a municipal corporation duly organized and validly existing under thelaws of the State of California with the power to carry on its business as it is now beingconducted under the statutes of the State of California.

B. Consultant entered into an Agreement on May 17, 2006 with the City of LosBanos to (i) conduct a Community Needs Assessment, (ii) conduct a ProjectFeasibility Analysis, (iii) prepare Preliminary Facility Plans and Sketches, (iv) preparean Implementation Plan, and (v) prepare a Final Report related to a futureCommunity Center. On February 2, 2007 the City of Los Banos and Consultantamended the scope ofwork to include a Master Plan Study for community facilities.

C. City solicited and received a proposal from Consultant, has reviewed theprevious experience and evaluated the expertise of Consultant, and approved byResolution No. 4938 the Proposed Work Plan and Estimated Fee submitted by theConsultant on October 11, 2007.

D. On January 25, 2008 the City of Los Banos and Consultant entered into a FirstAddendum to the May 2006 Agreement to expand the scope of work to include theDesign of Phases 1 and 2 and to include Construction Documents and ConstructionAdministration for Phase 1 of the Community Center Project.

E. Assignor desires to assign its rights and obligations under the First Addendumto Assignee and Assignee desires to accept the assignment of Assignor's rights andobligations under the First Addendum

F. The Agency and Consultant desire to further Amend and Restate the FirstAddendum, to among other things include Construction Documents and ConstructionAdministration for Phase 2 of the Community Center Project ("Project") within thescope ofwork, on the terms and conditions as set forth below.

G. Consultant possesses the skill, experience, ability, background, certificationand knowledge to provide the services described in this Agreement.

H. Agency has solicited and received a proposal from Consultant, has reviewedthe previous experience and evaluated the expertise of Consultant, and has approved

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by Resolution No. 2008-11 the Proposed Work Plan and Estimated Fee submittedby the Consultant on September 26, 2008,

I. Agency desires to retain Consultant to render professional services asdescribed in the Proposed Work Plan and Estimated Fee submitted by Consultanton October 11, 2007 and September 26, 2008, under the terms and conditions setforth in this Agreement.

NOW, THEREFORE, it is mutually agreed by and between the undersignedparties as follows:

1. Assignment and Substitution. Assignor hereby assigns, grants, transfers andsets over to Assignee all of Assignor's rights and obligations in the First Addendum as hereinamended and restated, and Assignee hereby assumes all of Assignor's rights and obligationsin the First Addendum as amended and restated and Consultant hereby consents to theassignment and substitution.

2. Scope of Services. Consultant s~ll diligently perform all the services describedin the Proposal and attachments submitted by Consultant dated October 11, 2007 andSeptember 26, 2008 attached hereto as Exhibit A and incorporated herein by reference.

3. Time of Performance. Time is of the essence in the performance of servicesunder this Agreement and the services shall be performed to completion :in a diligent andtimely manner. The failure by Consultant to perform the services in a diligent and timelymanner may result in termination of this Agreement by Agency. Notwithstanding theforegoing, Consultant shall not be responsible for delays due to causes beyond Consultant'sreasonable control. However, in the case of any such delay in the services to be provided forthe Project, each party hereby agrees to provide notice to the other party so that all delayscan be addressed.

4. Compensation, Agency shall pay Consultant for the sel-vices on a time andexpense not-to-exceed basis in accordance with the provisions of and the Project Budget thisSection and the Staff Hour and Fee Estimate as well as the Consultant's Schedule of Chargesas set forth in Exhibit A and incorporated herein by reference. Consultant's compensationfor all work performed in accordance with this Agreement, and sub consultant fees, shall notexceed ONE MILLION ONE HUNDRED SIXTY ONE THOUSAND DOLLARSand no/l00 ($1,161,000.00) as submitted by Consultant on October 11, 2007 and ONEHUNDRED SEVENTY ONE THOUSAND NINE HUNDRED THIRTYDOLLARS and no/l00 ($171,930.00) as submitted by Consultant on September 26, 2008without additional authorization from Agency.

4.1 Consultant shall submit monthly invoices to Agency describing the workperformed the preceding month. Consultant's bills shall include the name of the personwho performed the work, a brief description of the services performed and the specific Taskin the Scope of Services to which it relates, the date the services were performed, thenumber of hours spent on all work billed on an hourly basis, and a description of anyreimbursable expenditures. The Agency shall allow a billing rate increase annually in Januaryof 2009 and 2010. The allowed billing rate increase vrill be tied to the US Department of

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Labor, Consumers price index, (Urban, SF Bay area) annual inflation index increase for theprevious year. Agency shall pay Consultant no later than thirty (30) days after approval ofthe monthly invoice by the Project Administrator.

4.2 Agency shall reimburse Consultant only for those costs or expensesspecifically approved in this Agreement, or specifically approved in advance by Agency.Unless otherwise approved, such costs, shall be limited and include nothing more than thefollowing costs incurred by Consultant:

A. The actual costs (with 10% administrative markup) of sub consultants forperformance of any of the services that Consultant agrees to render pursuant to thisAgreement, which have been approved in advance by Agency and awarded in accordancewith this Agreement.

B. The actual direct costs (with 10% administrative markup) incurred byConsultant related to the performance of any services that Consultant agrees to renderpursuant to this Agreement, which have been approved in advance by Agency and awardedin accordance with this Agreement.

C. The actual costs (with 10% administrative markup) incurred by Consultantrelated to the delivery of products identified in the scope of services that Consultant agreesto render pursuant to this Agreement, which have been approved in advance by Agency andawarded in accordance with this Agreement.

D. The actual costs and/or other costs and/or payments specifically authorizedin advance in a separate writing and incurred by Consultant in the performance of thisAgreement.

4.3 Consultant shall not receive any compensation for Extra Work without theprior written authorization of Agency. As used herein, "Extra Work" means any work thatis determined by Agency to be necessary for the proper completion of the Project, but whichis not included within the Scope of Services and which the parties did not reasonablyanticipate would be necessary at the execution of this Agreement. Compensation for anyauthorized Extra Work shall be billed in accordance with the Billing Rates as set forth inExhibit B and on the terms set forth in this Article 2.

5. Project Manager. Consultant shall designate a Project Manager, who shallcoordinate all phases of the Project. This Project Manager shall be available to Agency at allreasonable times during the Agreement term. Consultant has designated Mary McGrath tobe its Project Manager. Consultant shall not remove or reassign the Project Managerwithout the prior written consent of Agency. Agency's approval shall not be unreasonablywithheld.

5.1. Consultant, at the sole discretion of Agency, shall remove from the Projectany of its personnel assigned to the performance of services upon written request of Agency.Consultant warrants that it will continuously furnish the necessary personnel to complete theProject on a timely basis as contemplated by this Agreement.

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6. Administration. This Agreement will be administered by the City of Los BanosPublic Works Department. The Public Works Director shall be the Project Administratorand shall have the authority to act for Agency under this Agreement. The ProjectAdministrator or his/her authorized representative shall represent Agency in all matterspertaining to the services to be rendered pursuant to this Agreement.

7. Responsibility of Agency. To the extent appropriate to this project, Agencyagrees to:

7.1 Assist Consultant by providing access to, and upon request of Consultant,one copy of all existing relevant information on file at Agency. Agency will provide all suchmaterials in a timely manner so as not to cause delays in Consultant's work schedule.

7.2 Examine all studies, reports, specifications, proposals and other documentsprepared and presented by Consultant, and render verbally or in writing as may beappropriate, decisions pertaining thereto within a reasonable time so as not to delay theprogress of the work by Consultant.

8. Standard of Care. All of the services shall be performed by Consultant orunder Consultant's supervision. Consultant represents to Agency that Consultant possesses,or will arrange to secure from others, all of the necessary professional capabilities,experience, resources and facilities necessary to provide to Agency the services contemplatedunder this Agreement. Consultant further represents that it will follow the current, generallyaccepted professional practices to make findings, render opinions, prepare factualpresentations, and provide professional advice and recommendations regarding the projectfor which services are rendered under this Agreement.

8.1 Consultant represents to Agency that it has or shall obtain all licenses,permits, qualifications, insurance and approvals of whatsoever nature that are legally requiredof Consultant to practice its profession. Consultant further represents to Agency thatConsultant shall, at its sole cost and expense, keep in effect or obtain at all times during theterm of this Agreement, any and all licenses, permits, insurance and other approvals that arelegally required of Consultant to practice its profession.

9. Hold Harmless and Indemnification. To the fullest extent permitted by law,Consultant shall indemnify, defend and hold harmless Agency, its City Council, boards andcommissions, officers, agents and employees (collectively, the "Indemnified Parties) fromand against any and all claims (including, claims for bodily injury, death or damage toproperty), demands, obligations, damages, actions, causes of action, suits, losses, judgments,fines, penalties, liabilities, costs and expenses (including, attorney's fees, disbursements andcourt costs) of every kind and nature that arise out of, pertain to, or relate to the negligence,recklessness, or willful misconduct of the Consultant, its principals, officers, agents,employees, vendors, suppliers, consultants, subcontractors, anyone employed direcdy orindirecdy by any of them or for whose acts they may be liable or any or all of them inperformance, or non performance, of services under this Agreement.

Notwithstanding the foregoing, nothing herein shall be construed to requireConsultant to indemnify the Indemnified Parties from any Claim arising from the active

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negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shallbe construed as authorizing any award of attorney's fees in any action on or to enforce theterms of this Agreement. Tnis indemnity shall apply to all claims and liability regardless ofwhether any insurance policies are applicable. The policy limits do not act as a limitationupon dIe amount of indemnification to be provided by the Consultant.

10. Independent Contractor. It is understood that Agency retains Consultant onan independent contractor basis and Consultant is not an agent or employee of Agency. Themanner and means of conducting the work are under the control of Consultant, except tothe extent they are limited by statute, rule or regulation and the expressed terms of thisAgreement. Nothing in this Agreement shall be deemed to constitute approval forConsultant or any of Consultant's employees or agents, to be the agents or employees ofAgency. Consultant shall have the responsibility for and control over the means ofperforming the work, provided that Consultant is in compliance with the terms of thisAgreement. Anything in this Agreement that may appear to give Agency the right to directConsultant as to the details of the performance or to exercise a measure of control overConsultant shall mean only that Consultant shall follow the desires of Agency with respectto the results of the services.

10.1 The Consultant shall at all times remain an independent contractor withrespect to the services to be performed under this Agreement and shall be responsible forthe payment of Federal and State Employer Withholding Taxes, Unemployment InsuranceTaxes, FICA Taxes, Retirement, Life and/or Medical Insurance, and Worker'sCompensation Insurance for the employees of the Consultant or any other personperforming services under this Agreement. Consultant and its employees are not entided tothe rights or benefits afforded to Agency's employees, including disability or unemploymentinsurance, workers' compensation, medical insurance, sick leave, or any other employmentbenefit. Consultant agrees to indemnify and hold Agency harmless from any claims, costs,losses, fees, penalties, interest, or damages suffered by Agency as a result of any claim by anyperson or entity contrary to the provisions of this Section 10.

11. Cooperation. Consultant agrees to work closely and cooperate fully with Agency'sdesignated Project Administrator and any other agencies that may have jurisdiction or interestin the work to be performed. Agency agrees to cooperate with the Consultant on the Project.

12. Agency Policy. Consultant shall discuss and review all matters relating to policyand Project direction with Agency's Project Administrator in advance of all critical decisionpoints in order to ensure the Project proceeds in a manner consistent with Agency goals andpolicies.

13. Progress. Consultant is responsible for keeping the Project Administratorand/or his/her duly authorized designee informed on a regular basis regarding the status andprogress of the Project, activities performed and planned, and any meetings that have beenscheduled or are desired.

14. Insurance. Without limiting Consultant's indemnification of Agency, and priorto commencement of work, Consultant shall obtain, provide and maintain at its own

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expense during the term of this Agreement, a policy or policies of liability insurance of thetype and amounts described below and in a form satisfactory to Agency.

A. Certificates ~fInsurance. Consultant shall provide certificates of insurance withoriginal endorsements to Agency as evidence of the insurance coverage required herein.Insurance certificates must be approved by the Agency Attorney prior to commencement ofperformance or issuance of any permit. Current certification of insurance shall be kept onfile with Agency at all times during the term of this Agreement.

B. Signature. A person authorized by the insurer to bind coverage on its behalfshall sign certification of all required policies.

C. Acceptable Insurers. All insurance policies shall be issued by an insurancecompany currently authorized by the Insurance Commissioner to transact business ofinsurance in the State of California, with an assigned policyholders' Rating of A (or higher)and Financial Size Category Class VII (or larger) in accordance with the latest edition ofBest's Key Rating Guide, unless otherwise approved by the Agency Attorney.

D. Coverage Requirements.

i. Workers' Compensation Coverage. Consultant shall maintain Workers'Compensation Insurance and Employer's Liability Insurance for his or her employees inaccordance with the laws of the State of California. In addition, Consultant shall requireeach subcontractor to similarly maintain Workers' Compensation Insurance and Employer'sLiability Insurance in accordance with the laws of the State of California for all of thesubcontractor's employees. Any notice of cancellation or non-renewal of all Workers'Compensation policies must be received by Agency at least thirty (30) calendar days (10calendar days written notice of non-payment of premium) prior to such change. The insurershall agree to waive all rights of subrogation against Agency, its officers, agents, employeesand volunteers for losses arising from work performed by Consultant for Agency.

ii. General Liability Coverage. Consultant shall maintain commercial generalliability insurance in an amount not less than two million dollars ($1,000,000) per occurrencefor bodily injury, personal injury, and property damage, including without limitation,contractual liability. If commercial general liability insurance or other form with a generalaggregate limit is used, either the general aggregate limit shall apply separately to the work tobe performed under this Agreement, or the general aggregate limit shall be at least twice therequired occurrence limit.

111. Automobile Liability Coverage. Consultant shall maintain automobileinsurance covering bodily injury and property damage for all activities of the Consultantarising out of or in connection with work to be performed under this Agreement, includingcoverage for any owned, hired, non-owned or rented vehicles, in an amount not less thantwo million dollars ($1,000,000) combined single limit for each occurrence.

iv. Professional Errors and Omissions Insurance. Consultant shall maintainprofessional errors and omissions insurance, which covers the Sel-v1.CeS to be performed in

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connection with this Agreement in the minimum amount of two million dollars ($1,000,000)per claim and in the aggregate.

E. Endorsements. Each general liability and automobile liability insurance policyshall either include or be endorsed with the following specific language:

i. The Agency, its elected or appointed officers, officials, employees, agents andvolunteers are to be covered as additional insureds with respect to liability arising out ofwork performed by or on behalf of the Consultant.

ii. This policy shall be considered primary insurance as respects to Agency, itselected or appointed officers, officials, employees, agents and volunteers as respects to allclaims, losses, or liability arising directly or indirectly from the Consultant's operations orservices provided to Agency. Any insurance maintained by Agency, including any selfinsured retention Agency may have, shall be considered excess insurance only and notcontributory with the insurance provided hereunder.

111. This insurance shall act for each insured and additional insured as though aseparate policy had been written for each, except with respect to the limits of liability of themsurmg company.

iv. The insurer waives all rights of subrogation against Agency, its elected orappointed officers, officials, employees, agents and volunteers.

v. Any failure to comply with reporting provisions of the policies shall notaffect coverage provided to Agency, its elected or appointed officers, officials, employees,agents or volunteers.

vi. The insurance provided by this policy shall not be suspended, voided, orcanceled, by either party except after thirty (30) calendar days (10 calendar days writtennotice of non-payment of premium) written notice has been received by Agency.

15. Assignment. Except as specifically authorized under this Agreement, theservices to be provided under this Agreement shall not be assigned, transferred contracted orsubcontracted out without the prior written approval of Agency.

16. Subcontracting. Agency and Consultant agree that sub consultants or subcontractors may be used to complete the work outlined in the Scope of Services. Nothing inthis Agreement shall create any contractual relationship between Agency and sub consultantor subcontractor nor shall it create any obligation on the part of Agency to pay or to see tothe payment of any monies due to any such subcontractor or sub consultant other than asotherwise required by law. Except as specifically authorized herein, the services to beprovided under this Agreement shall not be otherwise assigned, transferred, contracted orsubcontracted out without the prior written approval of Agency.

16.1 Cons1.utant shall include all subcontractors and sub consultants as insuredsunder its policies or shall furnish separate certificates and endorsements for eachsubcontractor or sub consultant. All coverages for subcontractors and sub consultants shall

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be subject to all of the requirements stated in this Agreement, including but not limited tonaming the parties as additional insureds.

17. Ownership of Documents. All documents, information and materials of anyand every type prepared by the Consultant pursuant to this Agreement shall be the propertyof the Agency. Such documents shall include but not be limited to data, drawings,specifications, reports, estimates, summaries, and such other information and materials asmay have been accumulated by the Consultant in performing work under this Agreement,whether completed or in process. The Consultant shall assume no responsibility for theunintended use by others of any such documents, information, or materials on project(s) thatare not related to the scope of services described under this Agreement.

18. Confidentiality. All Agency information disclosed to Consultant during thecourse of performance of services under this Agreement shall be treated as confidential andshall not be disclosed to any other persons or parties except as authorized by Agency, orrequired by law. All documents, including drafts, preliminary drawings or plans, notes andcommunications that result from the services in this Agreement, shall be kept confidentialunless Agency authorizes in writing the release of information.

19. Intellectual Property Indemnity. The Consultant shall defend and indemnifyAgency, its agents, officers, representatives and employees against any and all liability,including costs, for infringement of any United States' letters patent, trademark, or copyrightinfringement, including costs, contained in Consultant's drawings and specificationsprovided under this Agreement.

20. Access to Records. Consultant shall maintain all books, records, documents,accounting ledgers, and similar materials relating to work performed for Agency under thisAgreement on file for at least three (3) years following the date of final payment toConsultant by Agency. Any duly authorized representative(s) of Agency shall have access tosuch records for the purpose of inspection, audit and copying at reasonable times, duringConsultant's usual and customary business hours. Consultant shall provide proper facilitiesto Agency's representative(s) for access and inspection. Consultant shall be entitled toreasonable compensation for time and expenses relate to such access and inspectionactivities, which shall be considered to be an additional service to the Agency, subject to theprovisions of Section 4 hereinabove.

21. Conflict of Interest. The Consultant or its employees may be subject to theprovisions of the California Political Reform Act of 1974 (the "Act"), which (1) requiressuch persons to disclose any [mancial interest that may foreseeably be materially affected bythe work performed under this Agreement, and (2) prohibits such persons from making, orparticipating in making, decisions that will foreseeably financially affect such interest.

If subject to the Act, Consultant shall conform to all requirements of the Act.Failure to do so constitutes a material breach and is grounds for immediate termination ofthis Agreement by Agency. Consultant shall indemnify and hold harmless Agency for anyand all claims for damages resulting from Consultant's violation of this Section.

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Consultant warrants that neither Consultant, nor any of its employees, agents orsubcontractors, has a conflict of interest with respect to the work to be performed under thisAgreement, nor shall such individuals, during this term of this Agreement, acquire anyinterest, which would conflict in any manner with the performances of services hereunder.

22. Nondiscrimination. Consultant represents that it is an equal opportunityemployer and it shall not discriminate against any subcontractor, employee or applicant foremployment because of race, religion, color, national origin, handicap, ancestry, sex or age.

23. Notice. Any notices required to be given pursuant to this Agreement shall bedeemed to have been given by their deposit, postage prepaid, in the United States PostalService, addressed to the parties as follows:

To Agency:Mark FachinDirector of Public Works/City Engineer411 Madison AvenueLos Banos, California 93635

To Consultant:Mary McGrathBeverly Prior Architects222 Sutter Street, 9th FloorSan Francisco, CA 94108

Nothing hereinabove shall prevent either Agency or Consultant from personally deliveringany such notices to the other.

24. Termination. In the event that either party fails or refuses to perform any ofthe provisions of this Agreement at the time and in the manner required, that party shall bedeemed in default in the performance of this Agreement. If such default is not cured withina period of seven (7) calendar days, or if more than seven (7) calendar days are reasonablyrequired to cure the default and the defaulting party fails to give adequate assurance of dueperformance within seven (7) calendar days after receipt of written notice of default,specifying the nature of such default and the steps necessary to cure such default, the nondefaulting party may terminate the Agreement forthwith by giving to the defaulting partywritten notice thereof.

Notwithstanding the above prOVisions, Agency shall have the right, at its solediscretion and without cause, to terminate this Agreement at any time by giving seven (7)calendar days prior written notice to Consultant. Consultant In the event of terminationunder this Section, Agency shall pay Consultant for services satisfactorily performed andcosts incurred up to the effective date of termination for which Consultant has not beenpreviously paid. On the effective date of termination, Consultant shall deliver to Agency allreports, documents and other information developed or accumulated in the performance ofthis Agreement, whether in draft or final form.

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25. Compliance with Laws. Consultant shall at its own cost and expense complywith all statutes, ordinances, regulations and requirements of all governmental entities,including federal, state, county or municipal, whether now in force or hereinafter enacted.In addition, all work prepared by Consultant shall conform to applicable City, county, stateand federal laws, rules, regulations and permit requirements and be subject to approval ofthe Project Administrator and Agency.

26. Waiver. A waiver by either party of any breach, of any term, covenant orcondition contained herein shall not be deemed to be a waiver of any subsequent breach ofthe same or any other term, covenant or condition contained herein, whether of the same ora different character. The acceptance by the Agency of the performance of any work orservices by Consultant shall not be deemed to be a waiver of any term or condition of thisAgreement.

27. Integration. This Agreement represents the full and complete understanding ofevery kind or nature whatsoever between the parties hereto, and all preliminary negotiationsand agreements of whatsoever kind or nature are merged herein. No verbal agreement orimplied covenant shall be held to vary the provisions herein. This Amended Agreement winamend and restate the First Addendum to read as set forth herein, when it has been dulyexecuted by parties having the right to so amend and restate the Agreement. The terms ofthis Amended Agreement shall prevail over any inconsistent provision in any other contractdocument appurtenant hereto, including exhibits to this Amended Agreement.

28. Amendments. This Agreement may be modified or amended only by a writtendocument executed by both Consultant and Agency and approved as to form by the AgencyAttorney.

29. Severability. If any part of this Agreement is found to be in conflict withapplicable laws, such part shall be inoperative, null, and void insofar as it is in conflict withsaid laws, but the remainder of the Agreement shall continue to be in full force and effect.

30. Controlling Law and Venue. Agency and Consultant agree that the lawgoverning this Agreement shall be that of the State of California. Any suit brought by eitherparty against the other arising out of the performance of or otherwise relating to thisAgreement shall be filed and maintained in the County of Merced.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the datesset forth below.

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Date:

Date:

ATTEST:

Lucille L. Mallonee, Board Secretary

APPROVED AS TO FORM:

William A. VaughnAgency Attorney

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BEVERLY PRIORARCHITECTS,

by:Title:

REDEVELOPMENT AGENCYOF THE CITY OF LOS BANOS,a California municipal corporation

by: Tommy Jones, Chairman

Date:

ATTEST:CITY CLERK


APPROVED AS TO FORM:

William A. VaughnCity Attorney

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CITY OF LOS BANOS, aCalifornia municipal corporation

by: Tommy Jones, Mayor

•EXHIBIT A

CITY OF Los BANOS

New Community Center71h Street and Miller Plaza

Schematic Design, Entitlements, Contractor Solicitation,Design Development, Construction Documents, Construction

Administration

Proposed Work Plan and Estimated Fee

October 11, 2007

Page 1 af 9

Project Description: The City proposes to build a New Community Center to serve thecitizens of Los Banos adjacent to Miller Plaza and 71h St. Thecommunity center is to be developed in two phases and is to bebased on the concepts presented at the City Council hearing onSeptember 191h

, 2007. The Council has directed the designteam to continue design on Option 1 - Two Large Halls concept.The project is proposed to be implemented in two phases. Thescope of this work plan includes the design of both phasesthrough design development with the final constructiondocuments completed for Phase 1 only. The project will becontracted through a Lease/lease Back-Design Assist deliverymethod and the contractor will be brought into the project at thecompletion of the Enhanced Schematic Design Phase. The finalphasing configuration will be developed through a collaborativeeffort between the City, Beverly Prior Architects and the selectedContractor.

Budget: See attached Exhibit A for proposed project budget SlJmmary.

Building Improvements: See attached Exhibit A for scope of building improvements.

On-site Improvements: Anticipated on-site improvements include public and staff vehicleparking, vehicle drop off zone, service yard with BBQ'sJ bothconcrete and asphalt paving as appropriate, landscaping, utilityserviceJsecurity fencing as appropriate, flagpole, sidewalks, sitelighting and other related site elements.

Off-site Improvements: Off-site improvements will be limited to sidewalk reconfiguration,new aprons and street lighting relocation as required along the7th Street frontage.

Page 2 of9

Task 1 Schematic Design

Approach:

Based on-the site/floor plan arrangement diagrams created during the programming phose, Beverly Prior

Architects will begin the further development of the community center design. The site and building design will be

developed to a schematic level along with two controsting massing schemes to compare and contrast alternatives.

One selected building massing style will be refined based on direction from the City Design Team. We anticipate

the CHy Design Team will include members from public works, Parks and Recreation Department and the City

Council. The selected massing scheme refinement will establish the approach and style of architecture thot will be

developed for the exterior facility design. Through the development of the building exterior Beverly Prior Architects

will be selecting exterior material options, roof designs, building feneslration, and colors. Beverly Prior Architects

will prepare 3-d computer models of the selected design option to further demonstrote the design intent as a

port of this process. The design concept will be carried through each building creating a community center

campus. Fallowing the approvol of the schematic design by the Design Team Beverly Prior Architects will

present the project to the City Council for their approval of the design. Concurrent with this task Beverly Prior

Architects will work with the City to facilitate the implementation of a site survey/ topographical map and

geotechnicol study through consultants hjred directly by the City.

Del iverables

1. Schematic Design - site plans, floor pions, ond building eleva1ions

2. Building and site 3-d computer models

3. Facilitation of survey and geotechnical studies.

Meetings:1. 3-4 meetings as necessary 10 refine the design2. Presentation to City Council

Task 2 Planning Application and Presentation

Approoch:

Beverly Prior Architects will prepare and submitting the project for planning entitlements and CEQA clearance.

It is our understanding that the project is located in a Public Facility zone which requires Site Pion Review. We

will submit the site plan review application after the council has approved the design in Task 1.

Deliverobles:

1. Application and exhibits for the planning application including rendered site plan.

2. Project descriptions as necessary for CEQA evaluation.3. Presentation material for Planning Commission presentation.

Meetings:1. One (t l presentation ta the Planning Commission

Task 3 Enhanced Schematic Design and Cost Estimate

Page 3 of 9

Approach:

Following the preparation of the Planning Application and concurrent with the application processing, the

Beverly Prior Architects Project Team will prepare Enhanced Schematic Design documents including site plans,

(site groding plan, site utility pion, site improvement plan), building floor plan(s), roof plans, building

elevations, finish schedules and written "outline" specifications briefly describing the type of construction and

building systems proposed. In addition, Beverly Prior Architects will provide schemotic engineering pions that

will describe the building structural framing and foundation systems, mechonical systems, electrical systems,

plumbing systems, and data/telecommunications systems.

At this time Beverly Prior Architects will present equipment/fixture options with product cut sheets for review and

selection. This phase of the work will be very collaborative with the City Design Team working together to

establish the most cost effective building components that meet the City's goals for long term maintenance,

durability and project budget compliance. The level of engineering detail will be developed in this phase to the

degree that systems and finish value engineering can be effectively completed after the controctor hos been

selected and prior to beginning the Design Development Phase.

The end goal of this task is to develop and refine the design criteria so that an accurate CSI based estimate of

proboble construction cost can be completed. The estimate will be used as a guide when writing the

Contractor RFP and reconciled to meet the funds available during the contractor negotiation process. At the

time that the planning approV<:1ls are achieved we will hove a refined site design ond building system

engineering that has been bid by a contractor, the budget has been reconciled, and final phasing determined.

De/iverables:

1. Schematic building floor plans, on and off-site improvement plans, building/site phasing plans, building

elevations, building sections; Schematic engineering design drowings including structural, mechanicol,

plumbing, electrical plans, grading and drainage plan, landscape concepts and site utilities.

2. Written outline specifications briefly describing the engineered systems to be used in the new building.

3. Specialty Equipment and Furnishing listing with product cut sheets and budget information.

4. CSI based estimate of probable construction cost

Meetings:1. One meeting to 'kick-off' schemotic engineering effort with entire project Team.

2. One meeting to present Schematic engineering package to City Team.

3. One meeting to review comments/refine estimate/refine design.

4. Upon completion of Task 3, it is recommended that the Enhanced Schematic Design and cost estimate will

be utilized to prepare the Contractor RFP and be presented to the Covncil for approval prior to solicitation.

Task 4 Contractor Solicitation

Approach:Our team will assist the City in preparing the Enhanced Schemotic Documents for use in the solicitation for the

Contractor. The documents will be advertised and submitted to plan rooms for RFP response by the City.

There will be <:1 pre-proposal conference which we will organize and lead. We will respond to questions during

Page 4 of 9

the proposal process, prepare written clarifications and addenda. We will issue any oddenda to the potentiol

contractors.

Deliverobles:1. Pre-proposal Conference Agenda and meeting notes

2. Written response to questions

3. Preparation ond issuance of addenda

4. Proposal Evaluation and writlen recommendation to award.

Meetings:1. Attendance at pre-bid conference

2. Attendance at Proposal opening

Task 5 Design.Development

Approach .The Enhanced Schematic Design, contractor proposal, refined phasing opprooch and budget reconciliotion

documents will be the basis for the completion of the design development documents. The Beverly Prior

Architects architectural staff and the proiect consultant team will work together with the selected contractor and

sub contractors to produce the design development plans. It is assumed that the work will be developed under

the current building codes os adopted by the City of los Banos using standard production procedures. The set

will include all plans, material specifications, and engineering reports.

The primary intent of the design development phase is to determine the exact size, profile, and character of the

building systems to form a basis for final construction documents. This will be an interactive process with the

City Design Team, Contractor and the SPA Team with the goal of further developing the design through the use

of efficient systems that meet the appearance and long term durability goals of the City.

Deliverables:1. Design development level building construction drawings

2. Design development level complete on·sile grading and drainage design

3. Design development level complete on-site utility plan

4. Design development level complete on-site erosion control plan

5. Draft construction specifications - Part Two developed

6. Interior material color board

7. Updated plumbing, mechanical and electrical 'cut sheets

8. Design Development level Estimate of Probable Construction Costs reconciled with coniroctors refined

Guaronteed Maximum Price.

9. Refined Phasing Plan(s}

Meetings:

1. Three (3) meeiings with the City Profect Team and Contractor

o. Design Development Kickoff

b. Progress meetingc. 100% Design Development presentation

Page 5 of 9

Task 6 100% CONSTRUCTION DOCUMENTS

Approach:

The construction documents prepared in this phose will be prepared for phase 1 only of the project phasing

determined in the Task 4. This task has two ports. The first port is the completion of the 95% documents. This

work is based on comments to the design developme"t level design document and estimate. We will submit

this substantially complete set for plan check by the Cify. It is anticipated that this set will be complete except

for response 10 plan check questions. The 95% document set will be the basis for the finol estimate supported

by plan check comment adjustments. The second port includes the response to plan check comment and

completes the 100% documents for permit.

Deliverables:

1. 95% construction documents for submittal to building deportment

a. Site improvement design and documentation.

b. Dimensioned layout of final plans, sections, and elevations

c, Door and window schedules

d. Building detailing

e. Interior finish schedule

f. Interior design including selection of interior materials ond colors

2. Design of all engineered systems including;

a. Structural design

b. Mechonicol Design

c. Plumbing layout, design and fixture schedule

d. Performance criteria for design/build commercial sprinkler system

e. Electrical layout, design and fixture schedule

f. Phone, dato and speaker loyout and design to head-in equipment

g. Fire alerting system design

h. Catering Kitchen design and specifications

I. Stage/sound equipment design and specifications

3. Plan check Response Listing

4. Complete product specifications

5. Complete equipment and material cut sheets

6. Engineering calculations ond Title 24 energy documentation

7. 100% Design Documents (Permit Set)

8. Final construction cost estimate of probable cost in CSt format at 95% CD's. Reconciled with Contractor's

final Guaronteed Maximum Price.

Meetings:

1. Multiple (5-6) meetings to review progress.

Page 6 of 9

Task 7 Construction ObservationApproach:

W~ anticipate a 16 month construction period. During this 16 month period we will provide a field

representative that understands the trades, sequence of consfruction and has been 0 port of the Beverly Prior

Architectsconstructobility review team. This person specializes in performing the construction administration

portion of our contact. We will porticipate in construction meetings on-site every other week and provide

support to the field through our response to RFl's, submittal review, substitution review and change order

requests. This will be done by the project architect and supporting office stoff.

Deliverables and meetings:

1. Attend pre-construction meeting.

2. Attend bi-weekly construction progress meetings

3. Review of contractor pay requests.

4. R~view all RFI's ond respond promptly within on agreed to time line.

5. Review and respond to all Change Requests

6. Coordinate construction progress reviews by consultants as needed

7. Review and process submittals / shop drawings

8. Issue Clarifications to field questions

9. Issue field reports of site visits

Task 8 Close~out

Approach:

Beverly Prior Architects will perform 0 walk through to determine Substantial Completion of the construction

phase of the work; prepare a final punch list; and, perform a final walk through to verify that the punch list

items have been completed. Our tasks in the phose will include review of Contractor submitted documents for

accuracy, completeness and delivery to Owner, They include: Operations and Maintenance Monuals,

Warranlees and Guarantees and evidence of extra stock delivery, Beverly Prior Architects will review record

drawings prepared by -the contractor for occuracy 'ond completeness.

Deliverobles:

1. Walk-through to determine Substantial Completion with punch list

2. Review of close out documents including O&M manuals, warranties/guarontees, ond contractor prepared

record drawings.

3. Final Walk-through

4, Walk through at:3 months to follow-up on building occupancy.

Page 7 of 9

Work Scope, Qualifications and Exclusions:

Products ond services to be provided by the City:

1. Geotechnical Studies

2. Surveying

Work that is not included in the Contract Work Scope above

But is available upon request:

1, Clerk of the Work and Construction Management

2. Hearings, submittals or negotiations with the City of Los Bonos Planning Department beyond those listed

above.

3. Summary of facility maintenance ond operation cost

4. Head-in equipment design and procurement for phone, dato, and radio systems

5. Specialized energy analysis of the facility design

6. Design of off-site improvements beyond those required for site access.

7. Traffic Signal improvements

8. Off·site observation of construction materials and assemblies

9. LEED Certification Documentation Preparation

10. Furnishings Procurement and installation coordination.

FEE PROPOSAL

Task 1Task 2Task 3Task 4Task 5Task 6Task 7Task 8

Schematic DesignEntitlementsEnhanced Schematic DesignContractor SolicitationDesign DevelopmentConstruction DocumentsConstruction AdministrationProject Close Out

Total Proposed Fee:

Proposed Fee$ 102,000$ 15,000$ 166,000$ 30,000$ 357,000$ 246}000$ 236,000$ 9,000

This fee amount excludes reimbursables. We have recommended and have placed in theproject budget an amount of $141,000 be carried in for these expenses.

Page 8 of 9

1. Reimbursable Expenses

Expenses incurred for the Owner's purposes only by Consultant while rendering servicesunder this Agreement sholl be reimbursed at 110% of the actual costs as follows:

1.1 Reimbursable Expenses requiring approval (written or verbal) by the Owner prior tocharging for reimbursement include, but are not limited to the following;0) Plotting, printing and reproduction expenses for Owner reviews, mojor consultant

coordination document sets and submittals to governing agendes;b) Expense of transportation in connection with travel to los Bonos for projecl

related meetings. Including mileage reimbursement at the IRS sfandardreimbursemenl rate (which is currently at $0.485 per mile) for the use of privatevehicles;

c) Reimbursement of reasonable rental cor rates and direct mileage expenses;d) Regulatory agency and permit-filling fees that ore specific to the Project;e) Postage, handling and delivery of projecl del1verables;~ Messenger, priority, or overnight delivery services.g) Photograph Processing.h) Expense of transportation and liVing expenses in connection with oUf-of-town

travel to locations other than los Banos authorized by the Owner;i) Renderings, models and mock-ups requested by the Owner./) Mileage beyond 0 50 mile radius of consultant's office, in connection with the

performance Additional Services, at the role of $0.485 per mile.k) Travel expenses for coach airfare and reasonable lodging.I) Unique presentation or printed material only and specifically requested by

Owner, including presentation models, mylar/reproducible sets, additionalOwner requested check sets, Owner requested color reproductions ofpresentation documents; and presentation supplies beyond that which theConsultant typically uses.

1.2 Expenses incurred by the Consultant which are not Reimbursable Expenses include,but are nol limited to the fallowing:oj Printing and reproduction expense for Consultant and sub-consultant for

coordination check sets or reviews.b) Office supplies, labels, postage stamps, locol phone calls;c) Clerical support;d) Computer hardware and lor software;e) Longedistance telephone calls made for services under this Agreement.f) Facsimile transmissions.g) CAD cost, including plotting and operations cost, except as specifically noted as

reimbursable.

1.3 Owner is responsible far the prinJing of Bid documents including lease/LeasebackRFP materials.

1.4 Invoices submitted by the Consultant for Reimbursable Expenses shall include thefollOWing:0) All invoices sholl clearly indicate dollar value, purpose of charge, recipients, and

any authorization if necessary for each separate expense.

1.5 Consultant sholl ensure that all Sub-consultanls adhere to the above ReimbursableExpense terms while rendering services and sholl be compensated for expenses perthe terms stated above.

Page 9 of 9

EXHIBIT A

Los Banos Community Center Fee Summary26 September 2008

Design and Other Related Fees

QUANT UNIT Cost Per Unit TOTAL Notes.!Y.S..9.~~.i.().!"! ..E~.~.~: , , , . Total Contract Amount

• Current Contract 1 LS $1,161,000 $1,161,000 Current Contract· ·;· .. ·· ..L.'EE'O·siudJ;;s · · · ·..· ·..· , , '1 · [5··.., ·..··'$'2·0':0'00..· ·· · ·..·$2(5:'60·0 ·work·aiready·corrip·iete·(j · ·· · ..,..·;··..··Add·S·e';;:;ice··No:··1·'~·7ih·sireerfopo .. · ·..· ··1· ·· ..·[5 ,..·..·..·..··$770 ·..·..·· ,..·· · ·$770·..·· ·· .., , ..

Includes 10% contract allowed mark-up···.. ·;·'..·..Add·Se·;;;·ic·e..No:..2··~A'iiey .. ···· ..· ·..·· ..·.. ···· ·..·..1· ..·..[5..·.. ·..··..·..·$4:400 · · ·····..· ·$4;400·· ·..· ,.., , , .Extension/Improvements Includes 10% contract allowed mark-up··..,';..·..·Add·S·e·;;:;ice··No::f:·wate·;ii'ne···'··,··.. ···, · ·..1· ..·"[5·..·· ·..$2;0915' · ,··..$2;090..·· ..·· , ..Improvements . Includes 10% contract allowed mark-up···..·; ··Add'S·e·;;;·ice..No:..4·:·P'has·s..2..·· ·..· ··· , · ·..·..1· .."'[8 · ·$·1·4·4;670 ·..· ..·..·..·'$'14·;j·;fi70 · , -. ' ,.Construction Documents InCludes 10% contract allowed mark-Up

~ a~lil~_Q _--< ~ «,.t

:E~r.6):~~!~ii.<::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::. :::::::::::::::::~: ::::f~::::: ::::::::J*§A9.9.::::::::: ::::::::]~9.;:Q:Q9.::::::::::: ~i7~~:~~t~~:~!tg~~~t~~f;i~~~::::::::::::

Construction Management . $350,000 $350,000 construction

:t.~~\!~9.:~~~::$.p.~£!~U~~p.:~Ei)~~::::::::::::::::::::::::::· ::::::::::::::::::1: :::::~~::::: ::::::::::::::::~j,*:*;:Q.Q§ ::::::::::::::::::}?~~;9.9.Q !.~~~!~~:~~:~::ip.~~!~n~~P.~S~!~~::::::::::::::::::::S?~!?1~.~.~~!~.~.I ..!..Jy.!:.?!.i.().?~~!?D 1. ~~ J~.~...Q.q9. ~.~.~.,9.9.9. !:!.?!':.!':~!~~!~.\1 .., ...§g.':!~~.~.[Y..~.!).~..I!?p..?.().~~p..~.i.~ ..~~.~!?,y.~ 1. ~!?i , ~,~glgg9. ~.~g.!9.9.9. !.~~.!~.~.~~.r.~,9!?r.~.iD.\l..~~.p. , , ..§.!"!Y.ir.~D,~.~!.!~~.I.,(9..~.9.~l..Q9.9.!J.~!!.~.!~!!.':!!.! ,1 ~~ ,.. , , ~~9.!gg9. , ,.~~Q!9.9.9. §y..f.'.I.~D.~!!.!~ ..9.~p..~~~~.!!! ..Q~.~!~m.~.. !3.~.I.~.!!:.~ ..P.:!:.!:.~ ..9.!?~.!!.~f},!:D.9Y............... 1 LS $85,000 $85,000 Allowance

Subtotal Design Fees: $2,090,930Reimbursables I 11 LS I $141,000 $141,000 ProiectAliowance

Total Design and Othor Related Fees: $2,231,930

•

EHVER.JY

PRIO R, .(/ rOil rcefs

Exhibit A - I

26 Sept.ember 2008

Mr. Mark Fachin, Project ManagerCity of Los BanosPublic Works Department411 Madison AvenueLos Banos, CA 93635

Re: Los Banos Community CenterPhase 2 Construction Documentation and Sustainable Design DocumentationRequest for Additional Services No.4 & LEED Studies - Revised

Dear Mark:

Below is a table of the proposed fees to include the Phase 2 work in the construction document andconstruction administration scopes of work. The work includes the following:

• Design of additional site paving and landscaping in an area slated for hydro seed.• Development of the construction documents for the south building and portions of the

north building including architectural exterior and interior details, structural, mechanical,electrical and plumbing systems. This fee is only for work that is unique to these portionsof the project. .

• Construction documents related to court yard stage element.• Review of shop drawings, product submittals and responding to RFl's for systems that are

unique to the south building and portions of the north building.

The proposed fee breaks down as follows:l. NE Fees Phase 2 Construction Documents: CD's CNClose-out

• Beverly Prior Architects $ 63,260 $12,000• Interface Engineering

0 MEP, Lighting, Life Safety & Tech. $ 20,218* $11,352*

• Cornerstone Structural Engineers0 Structural Documentation $ 20,350* $8,800*

• O'Dell Engineering0 Civil-documentation $ 2,750* N/A

• O'Dell Engineering0 Landscape-documentation $ 5,940* N/A

Total Fee: $112,518* $32,152*

* Fee includes 10% contract allowed mark-up on consultant invoices.

2. Sustainable Design Documentation:The sustainable elements of the projects have been developed and documented with the goalof identifying the sustainable level of the project. Initially the city sought to certify the project

Los Banos Community CenterPhase Two - Construction DocumentsSustainable Design DocumentationRequest for Additional Services - Revised26 September 2008

Page 2 of 2

through the USGBC LEED process but moved away from this approach due to the cost. Thisadditional service request if for the time expended to date to identify and implement thesustainable criteria for the project. Total approximate fee: $20,000

Based on our Agreement, the fees outlined above are or will be on a time and expense not-toexceed basis. The above fee does not include reimbursable expenses. However, we believe thatthe project can be completed utilizing the existing reimbursable budget in place.

We appreciate the opportunity to present this proposal to you. Should you have any questionsplease do not hesitate to give me a call.

Sincerely,

Mary McGrath, AlA

Director

cc: George Williams, AlA, Project Manager

EXHIBIT A-ILos Banos Community Center Fee Summary26 September 2008

Design and Other Related Fees

QUANT I UNIT I Cost Per Unit I TOTAL! Notes.~~..9.~~!£!!:! ..~~~~.: Total Contract Amount

• Current Contract 1 LS $1,161,000 $1,161,000 Current Contract······~···· ..·LE·Ei5"·Studies ···..···..·..· ·..·········· 1" ····"Ls··..·..·····..·$20;00·0········· ..·········$20-;1)'00..· Wo·rk·airead'y..co·n;·p"ieted·..··· · ·..···......~··· ..·Ai:i·d..SeNice..No:..r:..7tii..Streerfopo · 1· ··""'[5 · · $7·70 · ·.. ······..··· $"7"70 ·..· .

.................................................................................................................................. ..1!!:!~1.~.~~~ ..~.~~~..~.?!:!!r.~.~ ..~.I.!~.~~~ ..~~~~~.~.1?• Add Service No.2 - Alley 1 LS $4,400 $4,400

..............~~!~.~~}.~.~(,!~p.~.?~.~.~.~.~~~ ...1!!:!~1.~9.~~ ..~.~~..~.?!:!~r.~.~~..~.!!~.~~~..~~~.~::~.1?.• Add Service NO.3 - Waterline 1 LS $2,090 $2,090

..............!~!?~.?~.~~.~!:!!~ ..1~.~~I.~9.~~ ..~g!.~..~?!:!!r.~.~!.~.!!~.~~~..~~~.~~.~p.• Add Service No.4 - Phase 2 1 LS $144,670 $144,670

Construction Documents

..............................................................................................I· · ·..· .Furnishings 1 LS $30,000 $30,000 Furniture selection &specification...............................................................................................····..· ·1· "(5··..· i5"ay·t·o..(j·ay·mariagement·du·ri·ng· ..

g~.~~.!r.~.~!!.?!:!.~.~!:!§l.~~T.~~L ~~~g.~gg.q l~?Q!.9..QQ ~?!:!~!~.~~.!!~~ ; ..Testing and Special Inspection 1 LS $235,000 $235,000 Testing and special inspection·Geotechn·i·cai"·investigation· ··..··..· · ·..····· · 1· ..·"'[5..· · ·$1·i3';06'0 · · ·$·1·8:·000 D"se·exi"sii"ng..· · · ·..· · · · · ..

·Bouni:i·ary..a·nei"Topo·graphif·s·urveys·..·· · ·..·..· 1· ···..[5· ·..··· $·1·0-;1)'00 ··· · ·$1·0;·000 iriCiudes..reco·rd'in·g..ma·p··· ·..· ··..· ·..·..·:~:6y.!~~~~~6:~~C~g:~:§h:9.9.~~~~~!~E~:6:::::::: ::::::::::::::::T :::::~§::::. ::::::::::::::::1~Q;:g:gQ :::::::::::::::::::::~~~9.;:Q:QQ ~¥.:~):~~~!6:~::~~p.~~0.~~~::::::::::::::::::::::::::::::::..1?.~.~!9.~..~.x~~!~!~9 ..F.~~.~.f.!?D!!~.~~~~y.............. 1 LS $85,000 $85,000 Allowance

Subtotal Design Fees: $2,090,930Reimbursables I 11 LS I $141,0001 $141,000IProjectAllowance

Total Design and Other Related Fees: I $2,231,930

B[VI:RJY

P RIO RarclU:lCC{S

B [V El~LY

PRIORarchitects

ExhibitB

2008 HOURLY RATES

POSITION TITLE

Principal

Project Director

Senior Project Manager

Lead Designer

Senior Project Architect

ProjeGt ManagedProject Architect

Project DesignedSpecifications

JohCaptain

Senior Technical

Intermediate Designel'

J LlIlior Designer

Senior Project Support

Project Support

Page 1 of 1

RATE

$220.00

$190.00

$175.00

$165.00

$140.00

$130.00

$130.00

$120.00

$115.00

$105.00

$90.00

$85.00

$75.00

LOS Ba.nosAtt.he Crossn)(uls ofCalijonlia

TO:

FROM:

DATE:

SUBJECT:

Agenda Staff Report

Mayor & C. ity co.unCi.1 Mem~~...

Elaine Post, RDA Directo% ..

December 17, 2008

Public Hearing and Resolution approving a Community DevelopmentBlock Grant (CDBG) Application for 2008/2009 Business AssistanceFunds, and Program Guidelines to be implemented in the event the CDBGFunds are awarded.

TYPE OF REPORT: Public Hearing

Recommendation:Open the Public Hearing, receive public comment, close the Public Hearing.

Background:The purpose of this hearing is to record the support of the community for a CommunityDevelopment Block Grant application in the amount of $300,000 to the CaliforniaDepartment of Housing and Community Development (HCD). The GDBG funds wouldallow the City to implement a Business Assistance program. The hearing serves as anopportunity for the City to endorse the project and approve guidelines and plansrequired to implement the CDBG-funded program.

This public hearing may also serve as a forum to rule out otherp>ressing needs withinthe City that are not as high a priority as the availability of low-interest loans with whichLos Banos residents may launch or expand their own small businesses. The hearingwas publicly noticed in both the Los Banos Enterprise on Friday, December 5th

, 2008.

A public information file regarding CDBG is available for public review at Los Banos CityHall, 520 J Street, Los Banos, California, during its normal business hours of 8:00 a.m.

to 5:00 p.m. Monday through Friday. Written comments will be made a part of thepublic record.

Discussion:The objective of the City's Business Assistance Program is to provide assistance tocompanies and entrepreneurs who wish to expand or establish new businesses andcreate jobs. The City's Business Assistance Program identifies those emerging localcompanies and entrepreneurs and links them to funding and other resources.

If the grant is awarded, the City will receive notification from HCD by March 6, 2009.The program itself would bein effect from approximately May 2009 to May 2011.

Following the public hearing, staff requests that the City Council adopt a resolutionapproving submittal of the application, approving the Program Guidelines, andcommitting a City in-kind staff contribution of $8,800.00.

Reviewed by:

Ste~'tYManagerAttachments:ResolutionCity of Los Banos Business Loan Fund GuidelinesPublic Hearing Notice

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL OF THECITY OF . LOS BANOS APPROVING ANAPPLICATION AND CONTRACT EXECUTIONFOR FUNDING FROM THE ECONOMICDEVELOPMENT ALLOCATION OF THE STATECOMMUNITY DEVELOPMENT BLOCK GRANT(CDBG) PROGRAM AND AUTHORIZING THEEXECUTION OF A GRANT AGREEMENT ANDANY AMENDMENTS THERETO WITH THESTATE OF CALIFORNIA FOR THE PURPOSESOF THIS GRANT.

WHEREAS, the City of Los Banos is eligible to apply for an Enterprise FundComponent grant in the Fiscal Year 2008-09 cycle established for State CommunityDevelopment Block Grants in a total amount of $300,000; and

WHEREAS, the City desires to provide local leverage for the BusinessAssistance Loan Program; and

WHEREAS, .said Program will provide loan and counseling services to localstartup and existing businesses which provide employment to target income groups;and

WHEREAS, the City's In-Kind match for this grant will be $8,800.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of LosBanos does hereby approve the application for a grant from the Enterprise Fund of theState Community Development Block Grant Program in the amount of $300,000.

BE IT FURTHER RESOLVED that the City Council of the City of Los Banos doeshereby' authorize the City Manager, or designee thereof, to act on the City's behalf in allmatters pertaining to this application.

BE IT FURTHER RESOLVED that if the application is approved, the Citymanager is authorized to enter into and sign the grant agreement and any subsequentamendments with the State of California for the purposes of this grant.

The foregoing Resolution was introduced at a regular meeting of the City Councilof the City of Los Banos held on the 1yth day of December 2008, by Council Member____~ who moved its adoption, which motion was duly seconded by Council Member___ and the Resolution adopted by the following vote:

AYES:NOES:ABSENT:

ATTEST:

Lucille L.Mallonee, City Clerk

2

APPROVED:

Tommy Jones, Mayor

CITY OF LOS BANOS

BUSINESSLOAN FUND GUIDELINES

The City of Los Banos Business Loan Fund (BLF)is designed to provide the critical andnecessary capital needs of businesses. in Los Banos. The intent of the BLF is to provide"appropriate" assistance to businesses, which in turn will create and/or retain jobs, alongwith increasing the commercial and 'industrial base ofthe community. Priority will be givento businesses that create or retain jobs, women- and minority-owned businesses, previousborrowers with an excellent payment history, and projects that improve business byupgrading the business employee(s) skills and wages.

Loans will not be made to businesses that are not based in Los Banos, nor \/ViII loans bemade if the loan underwriting criteria cannot be met or if the loan committee denies theapplication.

The following elements are critical in the selection of loans for the BLF:

• Existence of a "financial gap" that hinders the business or project from obtaining oraffording the project without the BLF.

• The terms and conditions of the project are "appropriate."• The project meets the benefit to low and moderate income households as the

national objective. This objective will be met as businesses create or retain jobs formembers of the Target Income Group (TIG). The TIG member is an individualwhose household income does not exceed 80% of county median householdincome.

• The loan meets the BLF's underwriting criteria.

SOURCE OF FUNDING

The source of funding for the BLF is the State of California Community Development BlockGrant Program. Loans are not from the City's General Fund, the County's General Fund,or from the Redevelopment Agency.

The State CDBG program requires the use of HUD underwriting guidelines to determinewhether a proposed CDBGsubsidy is appropriate to assist a business expansion orretention project.

The objectives of the underwriting guidelines are to ensure:

a) that project costs are reasonable;b) that all sources of project financing are committed;c) that to the extent practicable, CDBG funds are not substituted for non-Federal

financial support;d) that the project is financially feasible;e) that to the extent practicable, the return on the owner's equity investment will

not be unreasonably high; andf) that to the extent practicable, CDBG funds are disbursed on a pro rata basis

with otherfinances provided to the project;g) that the projected level of public benefit is reasonable.

See Exhibit A for a complete explanation of HUD Guidelines and Objectives for EvaluatingA CDBG Economic Development Project.

LOAN FEATURES

Lending Limits:Loans will not be made in amounts less than $3,000 or more than $50,000.

Terms of Loans:The term of working capital loans will not exceed five (5) years. The term of afixed asset loan will notbe greater than the weighted average useful life of thefixed asset being financed. In no case will a fixed asset loan bemade for a termof more than ten (10) years; however, the loan may be amortized for a maximumtwenty (20) year term. All other RLF loans will be amortized in full during theterm. In order to accelerate the use of RLFdollars, we will minimize the RLFloan terms where feasible and where it doesn't cause undue hardships on aborrower.

Equity Requirement:10% of total projectcosts.

Interest Rate:5-10% depending on the creditworthiness of the potential borrower. The interestrate is set based on the needs and demonstrated "financial gap"of each loan. If thefinancial gap is the availability of capital, the interest rate shall be near market ratesfor the asset being financed. If the financial gap is the cost of capital (rate, term orcollateral requirements), then the interest rate is set by evaluating the financialinformation to determine at what interest rate the project would be viable.

Fees:Borrowers will pay for any direct costs incurred in loan processing and closing, suchas recording fees, attorney fees, escrow fees, etc. A late fee of 5% of the paymentwill be assessed on payments made later than thirty (30) days from payment date.UCC-1 filing fee DMV filing fee per vehicle

Collateral Requirement:All RLF loans shall be fully secured by collateral in order to maintain the RLFProgram. No unsecured loans shall be made. The collateral will usually be in theform of liens of the assets financed including fixed assets such as machinery,accounts receivable, inventory, and lease assignments. Liens upon other nonproject assets of the borrower may also be used to secure the loan.. Personal

guarantees will be required of all persons/entities holding a 50% or more interest inthe applicant's business. One or more cosigner(s) may be required in order toobtain a BLFloan.Types of collateral may include:

• Liens on real property,• Deeds of Trust,• Liens on machinery, equipment, or other fixtures,• Lease assignments, as appropriate,• Personal and/or corporate guarantees, as appropriate, and• Other collateral, as appropriate.

Returned Check Fee:$30 first occurrence/$35 thereafter

Prepayment Penalty:None.

ELIGIBILITY FOR LOANS

In order to be considered for financing through the Business Loan Fund, applicants mustmeet the following requirements:

• Have a completed business plan which includes a competitive market analysis.,

• Be an on-going or start-up private, for-profit business concern, partnership, soleproprietorship licensed and located (or planning to locate) within the boundariesofthe City. Businesses operating out of a residence are eligible.

• Be incompliance with all county, state and federal financial obligations, includingtaxes with zoning regulations.

• Enterprise employees must qualify as Targeted Income Group individuals.

• Be a U.S. Citizen or legally admitted resident alien.

• Be unable to obtain sufficient credit elsewhere for the proposed project.

• Loan monies may NOT be used to satisfy any existing debts.

ELIGIBLE USES OF LOAN FUNDS

Loan proceeds can be used for purchase of equipment, machinery, furniture and fixturessupplies, working capital, and start-up costs.

ELIGIBLE COSTS:

(

• Working capital,inventory, furniture,fixtures, machinery and equipment.

INELIGIBLE USES OF LOAN FUNDS

Projects must be located in the City of losBanos. Projects cannot be residential in nature.Projects must have reasonable assurance.of repayment. Projects are not eligible if they

create a conflict of interest pursuant to CaliforniaGovernment Code §871 00 etseg for anycurrent City of los Banos employee or loan Committee member. Projects must create orretain jobs, primarily for the Targeted Income Group, and must leverage equity funds.

INELIGIBLE COSTS

• Costs incurred prior to submittal of the loan application.• Costs other than those listed as eligible.

GENERAL ADMINISTRATIVE FEATURES

• Confidentiality of Client Financial Information, as allowed by law.• Equal Opportunity/Affirmative Action Policy.• Monitoring and Reporting Forms.• Compliance with HCD and HUD regulations.• The GrantAdministrator will be responsible for overall project marketing, loan

evaluation, loan packaging, and monitoring.

PROJECT EVALUATION CRITERIA

• The number of jobs created/retained benefits members of the Targeted IncomeGroup.

• The amountof private dollars leveraging RlFfunds.• The financial viability of the proposed project.• The demonstrated need for the RlF funds ("appropriate" test).

STRENGTH OF BUSINESS

• Strength of business plan.• Experience of business owner and management.• Business SKillsand experience of business owner(s).• Repayment ability.• Available collateral.• Equity participation.• Acceptable financials.• Reasonableness of costs and financial feasibility.• Acceptable risk.• Job creation potential. .

NATIONAL OBJECTIVE

All activities conducted under this program will benefit businesses that employ TargetedIncome Group individuals. The National Objective will therefore be met through the ''TIGJobs" provision by local business operators.

The Business Loan Fund program exists to provide a public benefit to low and moderateincome employees. In order to ensure our goals are being met, all participants must bescreened thoroughly. Loan applicants will be evaluated in an extensive process whichincludes scrutiny of personal financial statements, business financial statements, and theapplicant'sstatement outlining their intentions for job creation/retention. Furthermore, loanrecipients must sublTlit a number of documents throughout the course of the loan periodproving that they are complying with the standards. Every effort is made to keep thereporting requirements minimal, however, applicants are forewarned that the NationalObjective portion ofthe loan isstrictly enforced and will remove funds ifthe loan recipientfailsto meetthe reporting requirements.

ROLE OF STAFF

The Loan Fund will be operated by the City or Los Banos or the Grant Administrator andwill be under the management of the Chief Financial Officer. Daily program operation/loanservicing and monitoring will be the responsibilityofthe City or Los Banos and the GrantAdministrator. Decisions to foreclose and declare defaults will be the responsibility of theloan committee, in consultation with legal counsel.

All other activities to be accomplished under this program not specifically mentioned abovewill be implemented by City or Los Banosor the Grant Administrator.

LOAN PACKAGING

The Grant Administrator will be responsible for loan packaging activities, including reviewof all proposals presented to the Loan Review Committee (LRC). The Grant Administratorwill evaluate initial loan applications and make a recommendation for applicant completingthe loan application and/or packaging for the LRC.

The Loan Officer will work with the applicant on assessmentofthe application's adherenceto BLF requirements and eligible use of funds. The Administrator will then prepare anadvisory report recommending one of the following actions:

• Approve the loan application as submitted.• Approve the loan application with special modification of loan covenants.• Deny the loan application.

LOAN REVIEW

The loan review process can take anywhere from 4-6 weeks from the time a completeapplication is submitted to the time the loan is approved/denied by the LRC. Please beadvised that this is a public process, and it does take longer than a typical commerciallender. Staff will make every effort to insure the timely review of loan applications andexecution of funds.

LINKING JOBS WITH LONG-TERM UNEMPLOYED

The Grant Administrator will work closely with the Merced County Departments ofWorkforce Investment (DWI) and Human Services Agency (HSA) to support programs andservices that provide assistance to the unemployed and low- to moderate-income persons.The agencies regularly promote training activities and the labor market to potential

employers in the area. Early and continued involvement With each participant will be aconsistent policyofthe Business Loan Fund.

MARKETING

Multiple methods will be used to promote and publicize the program, generating interestand BLF applicants. Outreach will be conducted to the media, existing program serviceproviders, and business professionals within the region. Staff will make numerous publicappearances to inform chambers of commerce, bankers and business developmentorganizations of the availability of the BLF. Staff will use the existing information networkswhich have been developed with the business and finance community through the City'sbusiness service programs and workshops. Local newspapers will publish articlesregarding the BLF on a regular basis.

LOAN REVIEW COMMITTEE

The Loan Fund will have a Loan Review Committee (LRC) consisting of three (3) votingmembers: the Chief Financial Officer of the City of Los Banos or designee, a localbusiness banker, and an economic development professional. TheLRC will meeton anas-needed basis. The LRC will be responsible forreviewing funding proposals and makingthe final decision to approve or deny all.loan applicationssubmitted including terms andconditions of loan agreements. A quorum of two members is required for all meetings.Legal counsel will be available to the LRC and utilized on an as-needed basis. Approvalfrom the California Department of Housing and Community Development (HCD) will berequired prior to any revisions to these guidelines.

All projects meeting the established criteria shall be brought before the LRC.

LOAN UNDERWRITING

The loan underwriting policies are designed to ensure the BLF's on-going viability, assistbusinesses that could not proceed without the BLF, and ensure that the Programassistance is "appropriate."

The objectives of the underwriting guidelines are to ensure:

• Project costs are reasonable.• Sources of project financing are committed.• The project is financially feasible.• Sufficient public benefit will be received from the expenditure of BLF funds.

UNDERWRITING CRITERIA

Credit Requirements: Cash flow must be sufficient to service debt.

Must attain a minimum score of15 out of 20 points in eachcategory of the application scoring system.

Personal guarantees of any person having 50% or moreownership in the busihess.

Adequate collateral of a form acceptable to the Loan ReviewCommittee maybe pledged as security.

Must have completed loan application and a satisfactoryexplanation of credit history.

Coverage and Leverage Ratios:Equity:Cash Flow:Collateral:Debt Coverage:Loan to Value:

10-15%1:11:11.25:180%

Borrower must provide a minimum of 10% contribution to the total project cost.Participation of other conventional or private sources in thefinanced projectisencouraged.

Application Scoring System:

Applications will be reviewed and evaluated based upon credit, cash-flow, collateral, andcharacter. The scale ranges from 0-20 in each ofthe4 categories. Application viability willrequire that an application receive a minimum score of 15 in each category. The creditscore will take into consideration the applicant's explanation(s) for any derogatoryinformation listed on the credit report.

Loan Limits, RepaymentTerms and Interest Rates:

• Loans can be Tor as little as $3,000, but no more than $50,000, maximum term is1 0years

• Interest rate determined by LRC (5-10% dependent upon applicant'screditworth iness)

• Equipment or fixed asset loans will be for up to 10 years, but no more than 80% ofthe asset's useful life.

• Loan funds maybe used to purchase machinery, equipment, furniture and fixtures.• Funds can be used for business startup, expansion or working capital.• Factoring or Accounts Receivable loans will be for no more than 90 days and no

more than 70% of the collateral value (i.e., purchase order, receivable, contract,etc.).

• Closing fees are to be paid by the borrower, but may be deducted from the loanproceeds as needed at closing.

LOAN CLOSING

Each applicant will be briefed on their obligations and requirements of the BLF.

LOAN MONITORING

City Staff or the Grant Administrator will monitor on-going operations of the loan recipient.City Staff or the Grant Administrator will review all reports, financial information, andperformance reports on each loan during the term of the loan and will meet with each BLFapplicant to ensure that the applicant maintains the documentation required.

Two separate loan files will be maintained. The first isthelegal file which holds all theoriginal loan documentation, along withthe o'riginaldocuments. This file shall bekeptinafireproof file cabinetfor safekeeping. The second is the credit file which shall contain theday-to-day administrative records of the loan. At a minimum the legal file shall include:

• Note• Loan Agreement, including Non-Financial Employment Plan• General Security Agreement• Personal Guaranty

The credit file shall contain, at a minimum, the loan application and financial informationassociated with the application, credit memo, Loan Committee approval, disbursementrecords, reports of site visits, updated financial information provided by borrower, jobcreation/retention data, etc.

LOAN COLLECTIONS

Loan borrowers will be instructed to mail/deliver their loan payments directly to: Attn:Finance Department, City of Los Banos, 520 J Street, Los Banos, CA 93635.

The Finance Department will establish individual loan accounts for receiving and depositingall loan payments and for input into the City of Los Banos existing collection system.

The Loan Fund will be operated aggressively with loan servicing support for borrowers toensure early intervention and assistance before loan quality is impacted. The ChiefFinance Officer will notify the grant administrator regarding late payments and nonpayment collection services.

FEDERAL OVERLAY REQUIREMENTS

Environmental Review Requirements: The Grantee acknowledges that all CDBGfunded projects are subject to environmental review. The Grantee has consulted theCDBG procedures forEnvironmental Review, and attests that it is in full compliancewith the process, as set forth in 24CFR Part 58.

Labor Standards Requirements: The Grantee acknowledges that CDBG-assistedprojects may be subject to the payment of Federal labor standards and provisions, andattests that all applicable standards and provisions will be strictly adhered to.

Other Requirements Related to CDBG Funds: The Grantee agrees to comply with allother requirements as-sociaIeti witn-tne use ofCDBGfunds, including Acquisition, AntiDisplacement, & Relocation provisions, Equal Opportunity/Section 3 regulations,Procurement regulations, and Contractor Eligibility and Certification provisions.

Notice of Public Hearing for Discussion of Possible State COBGApplications

NOTICE IS HEREBY GIVEN that a public hearJng will be held on Wednesday,December 17, 2008 at 7:00 p.m., City of Los Banos Chambers, 520 J Street, LosBanos, CAr in order to discuss a possible application for funding under the fiscalyear's State Community Development Block Grant (CDBG) Program and tosolicit citizen input on possible activities to be included in this application.

The General and Economic Development Allocations of the State CDBGprogram publish Notices of Funding Availability (NOFAs) each program year(July 1 to June 30). Eligible cities and counties may submit applications forCDBG funds under these NOFAs. The maximum amount of funding available isdescribed in the NOFA. Typically, up to $500,000 is available under the GeneralAllocation NOFA each year. Typically, up to $500,000 is available under theEconomic Development Enterprise Allocation each year. Also, the EconomicDevelopment Over-the-Counter Allocation can award up to $2,500,000 per year.Each year Planning and Technical Assistance Grants up to $70,000 under theGeneral Component and $70,000 from the Economic Development Componentare awarded on a "first come first served basis". The Department issues twosmall NOFAs each year under the Native American and Colonia's Allocations.The Native American Allocation is only for areas where concentrations of lowincome Native Americans live, who are not part of a federally recognized Indiantribe or Rancheria.. The Colonia's funding is only for designated communitieswithin 150 miles of the Mexican American border.

Eligible activities under the above allocations and NOFAs consist of: housing new construction projects; housing acquisition and housing rehabilitationprograms; community facility and public work projects; public service programsand planning studies. Economic development programs and projects are alsoeligible along with planning activities. Eligible activities paid for with State CDBGfunds must meet one or more of the three national objectives listed in CDBGfederal statutes as follows: benefit to low income households or persons;elimination of slums and blight; or meeting urgent community development need(a need from a state or federally declared disaster).

The City of Los Banos anticipates submitting applications under one or more ofthe State CDBG NOFAs published during the program year. An application isanticipated under the Economic Development Component. A separate publichearing win be held to discuss and approve each proposed application prior tosubmittal to the State.

The purpose of this public hearing will be tq give citizens an opportunity to maketheir comments known regarding what types of eligible activities the City shouldbe applying for under the State CDBG program. If you are unable to attend the

public hearing, you may direct written comments to Elaine Post, RedevelopmentAgency, the City of Los Banos, at the address listed above or you may telephone(209) 827-7000 x146. In addition, information is available for review at the aboveaddress between the hours of 8:00 a.m. and 5:00 p.m. on weekdays.

The City promotes fair housing and makes all its programs available to low andmoderate income families regardless of age, race, color, religion, sex, nationalorigin, sexual preference, marital status or handicap.

LOS Ba.no.sAt tbe Crossroluls ofCalifornia

TO:

FROM:

DATE:

Agenda Staff Report

Mayor & City Council Members

Elaine Post, RDA Director 'ffDecember 17I 2008·

SUBJECT: CDBG Economic Enterprise Fund

TYPE OF REPORT: Public Hearing

Recommendatioh:Open the Public Hearing, receive public comment, close the Public Hearing.

Background:The purpose of this hearing is to record any public input regarding CommunityDevelopment Block Grant (CDBG) Economic Development projects for the CaliforniaDepartmentof Housing and Community Development (HCD). CDBG funds would allowthe City to continue its Microenterprise Assistance program or implement a BusinessLoan Program. The hearing serves as an opportunity for· members of the community tooffer input regarding the City's economic development endeavors.

This public hearing may also serve as a forum to rule out other pressing needs withinthe City that are not as high a priority as the availability of low-interest loans with whichLos Banos residents may launch or expand their own small businesses. The hearingwas publicly noticed·in the Los Banos Enterprise on Friday, December 5th

, 2008.

A public information file regarding CDBG is available for public review at Los Banos CityHall, 520 JStreet,Los Banos, California, during its normal business hours of 8:00 a.m.to 5:00 p.m. Monday through Friday. Written comments will be made a part of thepublic record.

Discussion:

The objective of the City's Business Assistance activities would to provide assistance tocompanies and entrepreneurs who wish to expand or establish new businesses andcreate jobs. The City is eligible for up to $300,000 in funding toward businessassistance programs. If the grant is awarded, the City will receive notification from HCDby March 6, 2009. The program itself would be in effect from approximately May 2009 toMay2011. '

Reviewed by:

~~Sleve-a-CilyManager

Attachments: 'Public Hearing Notice

Notice of Public Hearing for Discussion of Possible State CDBGApplications

NOTICE IS HEREBY GIVEN that a public hearing will be held on Wednesday,December 17,2008 at 7:00 p.m., City of Los Banos Chambers, 520J Street, LosBanos, CA, in order to discuss possible applications for funding under the nextfiscal year's State Community Development Block Grant (CDBG) Program and tosolicit citizen input on possible activities to be included in these applications.

The General and Economic Development Allocations of the State CDBGprogram publish Notices of Funding Availability (NOFAs) each program year(July 1 to June 30). Eligible cities and counties may submit <;ipplications for

,CDBG funds under these NOFAs. The maximum amount of funding available isdescribed in the NOFA. Typically, up to $500,000 is available under the GeneralAllocation NOFA each year. Typically, up to $500,000 is available under theEconomic Development Enterprise Allocation each year. Also, the EconomicDevelopment Over.:.the-Counter Allocation can award up to $2,500,000 per year.Each yearPlarining and Technical Assistance Grants up to $70,000 under theGeneral Component and $70,000 from the Economic Development Componentare awarded on a "first come first served basis". The Department issues twosmall NOFAs each year under the Native American and Colonia's Allocations.The Native American Allocation is only for areas where concentrations of lowincome Native Americans live, who are not part of a federally recognized Indiantribe or Rancheria. The Colonia's funding is only for designated communitieswithin 150 miles of the Mexican American border.

Eligible activities under the above allocations and NOFAs consist Qf: housingnew construction projects; housing acquisition and housing rehabilitationprograms; community facility and public work projects; public service programsand planning studies. Economic development programs and projects are alsoeligible along with planning activities.' Eligible activities paid for with State CDBGfunds must meet one or more of the three national objectives listed in CDBGfederal statutes as follows: benefit to low income households or persons;elimination of slums and blight; or meeting urgent community development need(a need from a state or federally declared disaster).

The city/county of Los Banos anticipates submitting applications under one ormore of the State CDBG NOFAs published during the next program year.Applications are anticipated under the General and Economic DevelopmentComponents as well as the Planning and Technical Assistance Components. Aseparate public hearing will be held to discuss and approve each proposedapplication prior to submittal to the State.

The purpose of this public hearing will be to give citizens an opportunity to maketheir comments known regarding what types of eligible activities the City should

be applying for under the State CDBG program. If you are unable to attend thepublic hearing, you may direct written comments to Elaine Post, RedevelopmentAgency, the City of Los Banos, at the address listed above or you may telephone(209) 827-7000 x146. In addition, information is available for review at the aboveaddress between the hours of 8:00 a.m. and 5:00 p.m. on weekdays.The City promotes fair housing and makes all its programs available to low andmoderate income families regardless of age, race, color, religion, sex, nationalorigin, sexual preference, marital statusor handicap.

Planning Commission

1 Norm Donovan

2 Jose Manzo

3 Stephen Hammond

4 Tom Mello

5 Shirley Napolitano

6 Ann McCauley

7 Erasmo Viveros

Local Appointments List

Term

March 10, 2004January 1, 2006

January 8, 2007May 7,2008

May 7,2008

May 7,2008

February 13, 2008

- December 31, 2009

- December 31, 2009

- December 31, 2010

- December 31, 2010

- December 31, 2010

- December 31,2010

- December 31, 2011

Parks & Recreation Commission

123 Tesse Mazzina, County Appointed

4 Arturo Herrera, City Appointed

5 Michael Neu, County Appointed

6 Mario Gonzalez, School Board Appointed

7 Jacqueline Skinner, City Appointed

Air ort Adviso Commission

12 Ronald Ingram, Chairperson

3 Alan Wilber

4 Jack Aguilar, Jr.

5 Larry Leonardo, Sr.

Culture & the Arts Commission

1 Ramona Giuliani

2 Margaret Patricio

3 Dean Young

4 Colleen Menefee

5 Elna Pedersen

6 Rebecca Palmer

7

Term

February 1, 2005

May 7,2008

February 13, 2007

January 11, 2008

February 20, 2008

January 17, 2007

January 17, 2007

January 17, 2007February 20, 2008

Term

November 5, 2008

November 5, 2008

November 5, 2008

November 5, 2008

November 5, 2008

November 5, 2008

- January 1, 2009- December 31,2010

- January 1, 2011

- December 31,2011

- December 31, 2011

- December 31,2010

- December 31,2010

- December 31,2010

- December 31,2011

- December 31,2010- December 31, 2010

- December 31,2010- December 31,2010

- December 31,2010

- December 31,2010

12/12/2008 sa

ApplicantsWilbert JacksonTedi Carey

Robert Huddleston

ApplicantsHoang NguyenDawn Mil/ee WrightDiana IngramJohn D. CastilloBernard Martin ArbelbideDavid A. KujawaDenise L.J. LilledahlMary CoakleyNikki TuftMichael A. Stagnaro

ApplicantsNone

City of Los BanosCulture & the Arts Commission Applicants

City of Los BanosParks & Recreation Commission Applicants

City of Los BanosAirport Advisory Commission Applicants

sa 12/12/2008