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CC SR 20260407 C - Adoption of AFSCME MOU 2025-28 CITY COUNCIL MEETING DATE: 04/07/2026 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider adopting a Memorandum of Understanding (MOU) with the American Federation of State, County and Municipal Employees (AFSCME) District Council 36 for Fiscal Years (FY) 2025-2028 and adjusting the Part-Time Human Resources (HR) Specialist job classification and the salary schedule for eligible part-time employees. RECOMMENDED COUNCIL ACTION: (1) Adopt Resolution No. 2026-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ACCEPTING, APPROVING, AND ADOPTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES DISTRICT COUNCIL 36 FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2028; (2) Adopt Resolution No. 2026-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ACCEPTING, APPROVING, AND ADOPTING THE COMPENSATION AND BENEFITS FOR THE UNREPRESENTED AND CONFIDENTIAL PART-TIME HUMAN RESOURCES SPECIALIST CLASSIFICATION FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2028; and (3) Adopt Resolution No. 2026-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2026- 90 THAT UPDATES THE SALARY SCHEDULE FOR ELIGIBLE PART-TIME EMPLOYEES TO REFLECT A THREE PERCENT COST OF LIVING ADJUSTMENT EFFECTIVE APRIL 7, 2026. FISCAL IMPACT: The budget allocated for Year 1 of the three-year MOU is included as part of the Citywide personnel budget of $15.8 million for Fiscal Year (FY) 2025-26. Of this amount, the base budget for salary and benefits for approximately 65 AFSCME employees is $1.9 million. If the MOU is approved, as presented in the proposed Tentative Agreement, the Year 1 increase to the $1.9 million base budget is estimated at approximately $113,000 or 6%. No additional 1 CITYOF RANCHO PALOS VERDES appropriation is required, as the proposed increase can be absorbed within the current budget. The fiscal impact for Year 2 is approximately $110,500 and will be requested as part of the FY 2026-27 Proposed Budget, which will be presented to the City Council during the budget workshop on April 20, 2026. The fiscal impact for Year 3 is estimated at $168,200. VR Amount Budgeted: N/A – see above Additional Appropriation: N/A – see above Account Number(s): N/A – see above ORIGINATED BY: Vanessa Godinez, Human Resources and Risk Manager VG REVIEWED BY: Catherine Jun, Deputy City Manager CJ APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A.Resolution No. 2026-___ Approve FY 2025-2028 AFSCME MOU (page A-1) B.Proposed 2025-2028 AFSCME MOU (page B-1) C.Resolution No. 2026-___ Part-Time Human Resources Specialist (page C-1) D.Resolution No. 2026-___ Proposed Salary Schedule effective April 7, 2026 (page D-1) E.Resolution No. 2025-18, Tentative Agreement with AFSCME (page E-1) F.FY 2023-2025 AFSCME MOU (page F-1) G.Employer-Employee Relations Resolution No. 2018-2 3 (page G-1) BACKGROUND: The current MOU between the City and AFSCME, including the subsequent three amendments thereto, covers the period of July 1, 2023 through June 30, 2025 (Attachment F). Given the impending expiration of the current MOU, the City, starting in January 2025, requested AFSCME to meet and confer over a successor MOU. Pursuant to the Meyers-Millais-Brown Act (MMBA) (Government Code sections 3500- 3511) and the City’s Employer-Employee Relations Resolution No. 2018-23 (Attachment G), the City Council-approved negotiating team (consisting of Labor Attorney Pam Lee, City Manager Ara Mihranian, Deputy City Manager Catherine Jun, Finance Director Vina Ramos, and Human Resources Manager Vanessa Godinez) and AFSCME engaged in good faith negotiations. On February 6, 2026, both parties successfully reached a Tentative Agreement (TA) on a successor MOU covering the period of July 1, 2025 through June 30, 2028. The TA was ratified by AFSCME membership on March 6, 2026 and has been fully executed by both parties. On March 17, 2026, the City Council adopted Resolution No. 2026-18 approving the TA (Attachment E). 2 DISCUSSION: 1) AFSCME MOU Since then, the City's negotiating team worked closely with AFSCME representatives to incorporate the terms of the TA into a successor MOU. This required ensuring all redlined changes were acceptable to both parties. The parties have since agreed to the changes, and Staff is requesting City Council to adopt the attached Resolution thereby approving the FY 2025-2028 AFSCME MOU (Attachment A and B). In summary, the AFSCME MOU for FY 2025-2028 includes the following negotiated terms: Negotiated Term Details o through June 30, 2028. o of the successor MOU, provide a Cost of Living Adjustment (COLA) of between 0% to 3%, as measured by the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Long Beach-Anaheim metropolitan area covering the prior twelve month period March to March. o Year 2 – Effective July 1, 2026, in lieu of a COLA, the City shall provide a one hundred dollar ($100) bonus to all employees employed as of July 1, 2026. o Year 3 – Effective July 1, 2027, provide a COLA of between 0% to 3%, as measured by the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Long Beach- covering the prior twelve-month period March to March. Performance o evaluation once the employee has completed 750 work hours (starting on the employee’s last performance evaluation date) or one year of employment, whichever 3 Negotiated Term Details o employee per academic year. All coursework must be related to the employee’s job and be pre-approved prior reimbursement will require a one- provision that will be reduced on a pro-rata basis over the one-year period, in the event the employee leaves City employment within that 1-year period. Effective July 1, 2025, employees must work a minimum of 500 hours in a fiscal year to be eligible and maintain those hours during the one- reimbursement. o but only during wet weather conditions. Sick Leave o as follows: • Eligible employees shall accrue paid sick days at the rate of 1 hour per every 30 hours worked, beginning at the commencement of employment and will accrue such paid sick leave for use beginning on the ninetieth (90th) day of employment or as permitted by law. • All paid sick leave is capped at eighty (80) hours per calendar year, including if rolled over from the prior year, and has no vested interest or cash value. o Amend the Article to add a provision that memorializes current practice that caps the annual usage of Paid Sick Leave, in accordance with State law: • Employees are limited to use forty (40) hours of sick leave in each year of employment. Sick Leave o any eligible part-time employee who is hired to a full- time position with the City may transfer remaining accrued part-time sick leave hours to the employee’s full-time sick leave bank. 4 Negotiated Term Details o pay for working any hours during the following three federal holidays: Martin Luther King, Jr. Day, Presidents Day, and Veterans Day. o Meal periods for part- dependent upon the particular shift, work location, and whether the employee has meal period uncompensated meal period of thirty (30) minutes will be provided for every shift of six (6) or more hours. The meal period may not be combined with a rest period or used to compensate for a late arrival or early departure from work. Any waiver of the meal period must be confirmed by the employee in writing, except when there is a lack of coverage for a shift, as determined by the Department Head. In the event that an employee is required to work during a meal period, such time worked shall be compensated at the employee’s hourly rate and the employee may be permitted to eat meal during the working meal period. Article XII. Work Schedules, Meal & Rest Periods and Attendance. o Rest periods for part-time employees are dependent upon the particular shift, work location, and whether the employee has rest period coverage. Scheduling of breaks will be at the discretion of the Department Head or direct supervisor. Generally, an uninterrupted, compensated rest period of fifteen (15) minutes will be provided for every shift of four (4) or more hours. The rest period may not be combined with a meal period or used to compensate for a late arrival or early departure from work. Rest periods shall have no monetary value and shall be forfeited if not used during the work period. Additional details are in the proposed FY 2025-2028 AFSCME MOU (Attachment B). Furthermore, all terms and conditions of the current MOU have been carried over into the successor MOU, unless expressly modified or changed. 5 Part-Time Human Resources Specialist The City Negotiating Team and AFSCME discussed and agreed to remove the part-time HR Specialist classification out of AFSCME and into a confidential group that is not represented by any bargaining group. This helps prevent conflict of interest, since the HR Specialist and, generally all HR positions, regularly handle sensitive labor, personnel, and negotiation-related information. Moving the part-time HR Specialist classification out of a bargaining group is consistent with past practice. The City previously moved the full-time Human Resources Analyst out of the Rancho Palos Verdes Employees Association (RPVEA) and into a confidential, unrepresented group; furthermore, the HR and Risk Manager is in an unrepresented management group, with all other management and executive positions. It has also been the City’s past practice to extend most applicable, negotiated agreements with RPVEA to these unrepresented, full-time positions. Similarly and if acceptable, Staff recommends the City Council to adopt the attached resolution to move the HR Specialist out of AFSCME and in a confidential, unrepresented group with compensation and benefits like those of AFSCME members (Attachment C). Updated Salary Schedule Part of negotiations include providing eligible part-time employees with a COLA of between 0% to 3%, as measured by the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Long Beach-Anaheim metropolitan area covering the prior twelve month period March to March. The COLA for this area and time period is 3%, and the MOU stipulates that the COLA goes into effect on the MOU approval date, which is tentatively scheduled for April 7, 2026. Should City Council approve the MOU on this date, a resolution with an updated Salary Schedule that reflects the 3% COLA to base salaries for all AFSCME job classifications as well as the part-time HR Specialist classification must be adopted by City Council to go into effect. The resolution and updated Salary Schedule are available under Attachment D. CONCLUSION: Based on the above discussion, the City Council is being asked to adopt three resolutions that will: approve the AFSCME MOU for the period of July 1, 2025 through June 30, 2028 (Attachment A); place the Part-Time HR Specialist into a confidential, unrepresented group with compensation and benefits similar to those of AFSCME members (Attachment C); and update the Salary Schedule to reflect a negotiated 3% COLA for AFSCME classifications and the part-time Human Resources Specialist classification effective April 7, 2026 (Attachment D). Adopting all three Resolutions will ensure the City’s compensation documents remain current and consistent with approved labor agreements and compensation policies. 6 ALTERNATIVES: In addition to the staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Do not adopt the attached Resolution approving the FY 2025-28 AFSCME MOU, and direct staff to engage in further negotiations with AFSCME. 2. Do not adopt the attached Resolutions approving the compensation and benefits for the Human Resources Specialist. 3. Do not adopt the attached Resolution updating the Salary Schedule effective April 7, 2026, and engage in further negotiations. 4. Take other action, as deemed appropriate. 7 RESOLUTION NO. 2026-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ACCEPTING, APPROVING, AND ADOPTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES DISTRICT COUNCIL 36 FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2028 WHEREAS, the City Council of the City of Rancho Palos Verdes (“CITY”) adopted Resolution 2023-44 on September 19, 2023, accepting, approving and adopting a Memorandum of Understanding between the CITY and the American Federation of State, County, and Municipal Employees District Council 36 (“AFSCME”) for the period of July 1, 2023 through June 30, 2025 (“AFSCME MOU 2023-25”); and WHEREAS, the City Council of the CITY subsequently approved a First, Second and Third Amendment to the AFSCME MOU 2023-25; and WHEREAS, the AFSCME MOU 2023-25 expired on June 30, 2025; WHEREAS, the labor representatives of the CITY and AFSCME have successfully met and conferred to negotiate a Tentative Agreement for an AFSCME MOU covering the period July 1, 2025 through June 30, 2028 and which was accepted, approved and adopted by the City Council on March 17, 2026 by means of Resolution No. 2026-18; and WHEREAS, Resolution No. 2026-18 directed the labor representatives of the CITY and AFSCME to jointly prepare a written memorandum of understanding in accordance with the Tentative Agreement for an AFSCME MOU covering the period July 1, 2025 through June 30, 2028 and present same to the City Council at a future date for consideration and approval; and WHEREAS, the labor representatives of the CITY and AFSCME met and conferred and jointly prepared the Fiscal Year (FY) 2025-2028 AFSCME MOU (Exhibit A) in accordance with the Tentative Agreement for an AFSCME MOU covering the period July 1, 2025 through June 30, 2028; and WHEREAS, the City Council now desires to accept, approve and adopt the FY 2025-28 AFSCME MOU. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: A-1 Section 1: The recitals set forth above are true and correct and incorporated herein by this reference. Section 2: The FY 2025-28 AFSCME MOU 2025-28 attached hereto as Exhibit A is accepted, approved, and adopted and shall replace any and all prior AFSCME MOUs and amendments thereto. Section 3: The City Clerk shall certify to the adoption of this Resolution and deem it effective as of July 1, 2025, which shall supersede and replace Resolution No. 2023- 44. PASSED, APPROVED and ADOPTED this 7th day of April, 2026. _____________________ Paul Seo, Mayor ATTEST: _______________________ Teresa Takaoka, City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2026-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on April 7, 2026. _______________________ Teresa Takaoka, City Clerk A-2 B-1 TABLE OF CONTENTS I. TERM ........................................................................................................................................................ 1 II. DEFINITION OF TERMS ...................................................................................................................... 1 III. MANAGEMENT RIGHTS ......................................................................................................................... 2 IV. UNION RIGHTS ......................................................................................................................................... 2 A. Union Access to City Facilities ................................................................................................................. 2 B. Bulletin Boards ........................................................................................................................................... 3 C. Distribution of Literature ............................................................................................................................ 3 D. Union Access to New Hires and Employee Information ............................................................................ 4 E. Dues Deduction .......................................................................................................................................... 4 F. Representative Rights ................................................................................................................................. 5 G. Union Prohibited Conduct .......................................................................................................................... 5 H. Internet Use and Electronic Mail ................................................................................................................ 5 V. COMPENSATION ........................................................................................................................................ 5 A. Initial Employment .................................................................................................................................... 5 B. Movement Within the Salary Range .......................................................................................................... 6 C. Top of the Range ........................................................................................................................................ 6 D. Hourly Wage Range Cost of Living Adjustment (COLA) ......................................................................... 6 E. Non-Exempt Employees Overtime ............................................................................................................ 7 F. Acting Pay................................................................................................................................................... 7 G. Performance Evaluations ........................................................................................................................... 7 H. Promotional Advancement ......................................................................................................................... 8 VI. BENEFITS .................................................................................................................................................. 8 A. Health Insurance Plans ............................................................................................................................... 8 B. Employee Assistance Program ................................................................................................................... 8 C. Life Insurance ............................................................................................................................................. 9 D. Accidental Death and Dismemberment ...................................................................................................... 9 E. Short-Term Disability Insurance ................................................................................................................. 9 F. California Public Employees' Retirement System (CalPERS) ................................................................... 9 G. Tuition Reimbursement ........................................................................................................................... 10 H. Workers' Compensation and Unemployment Insurance .......................................................................... 10 I. Uniforms .................................................................................................................................................... 11 J. Boot Reimbursement ................................................................................................................................. 11 VII. INCENTIVE PAY PROGRAM ................................................................................................................ 11 VIII. EMPLOYEE EXPENSES ....................................................................................................................... 11 A. Mileage and Parking Expenses ................................................................................................................. 11 B-2 IX. AT-WILL STATUS OF EMPLOYEES ..................................................................................................... 12 X. LEAVES ...................................................................................................................................................... 12 A. Vacation Leave ........................................................................................................................................ 12 B. Sick Leave ................................................................................................................................................ 12 C. Bereavement Leave .................................................................................................................................. 14 D. Jury Duty .................................................................................................................................................. 14 E. Leave of Absence without Pay .................................................................................................................. 14 F. Military Leave .......................................................................................................................................... 16 G. Holiday Overtime (Admin Instruction 2-06) ............................................................................................ 16 H. Family and Medical Leave ....................................................................................................................... 16 XI. LAYOFF ................................................................................................................................................... 16 XII. WORK SCHEDULES, MEAL & REST PERIODS AND ATTENDANCE ...................................... 17 A. Work Schedules ....................................................................................................................................... 17 B. Meal & Rest Periods ................................................................................................................................. 17 C. Attendance ............................................................................................................................................... 18 XIII. GRIEVANCE PROCEDURES ............................................................................................................... 18 A. Purpose of Grievance Procedure .............................................................................................................. 18 B. Informal Discussion of Grievance ............................................................................................................ 19 C. Formal Grievance Procedure .................................................................................................................... 19 XIV. DRESS CODE ........................................................................................................................................ 20 XV. ADMINISTRATIVE INSTRUCTIONS AND DEPARTMENTAL POLICIES ................................. 20 A. Administrative Instructions ...................................................................................................................... 20 B. Departmental Policies and Procedures ..................................................................................................... 21 XVI. WRITTEN NOTICE ............................................................................................................................... 21 XVII. OUTSIDE EMPLOYMENT (ADMIN INSTRUCTION 2-12) ......................................................... 21 XVIII. SAVINGS CLAUSE AND SEVERABILITY .................................................................................. 21 XIX. JOINT DRAFTING ............................................................................................................................... 21 XX. MODIFICATION ................................................................................................................................... 22 XXI. JOB DESCRIPTION ............................................................................................................................. 22 XXII. REOPENERS ....................................................................................................................................... 22 XXIII. SIGNATURE PAGE .......................................................................................................................... 23 XIV. APPENDIX A ........................................................................................................................................ 24 B-3 1 MEMORANDUM OF UNDERSTANDING between the City of Rancho Palos Verdes and American Federation of State, County and Municipal Employees, District Council 36 Pursuant to the requirements of the Meyers-Milias-Brown Act ("MMBA," commencing at California Government Code § 3500 et seq.) the City of Rancho Palos Verdes ("City") has recognized the American Federation of State, County and Municipal Employees, District Council 36 ("Union") as the majority or exclusive representative, as those terms are interchangeably used under the MMBA, for those City employees in the bargaining unit ("Unit") defined as all part-time employees, excluding temporary employees and interns, in the classifications listed on Appendix "A" to this Memorandum of Understanding ("MOU"). I. TERM This MOU will be effective from the date of City Council approval and shall cover the period commencing from July 1, 2025 through and including June 30, 2028, unless otherwise expressly provided in this MOU. II. DEFINITION OF TERMS Whenever used in this MOU, the following terms shall have the meanings set forth below: 1. City: The City of Rancho Palos Verdes. 2. City Manager: The duly appointed City Manager of the City of Rancho Palos Verdes or his/her designee. 3. Classification: A position or positions assigned to the same job title. 4. Competitive Service: The competitive service established by Section 2.46.040 of the Rancho Palos Verdes Municipal. 5. Day: Unless otherwise indicated, day means calendar day. 6. Demotion: A change in employment status from one classification to another having a lower rate of pay and/or change in duties which are allocated to a class having a lower maximum rate of pay. A demotion may be temporary or permanent. 7. Dismissal: The discharge of the employee from City service. Discharge and dismissal are used interchangeably in this MOU. 8. Employee: For the purposes of this MOU, a part-time employee in the bargaining unit defined by this MOU and whose part-time classification, excluding temporary employees and interns, is listed in Appendix A. 9. Evaluation Date: The date in which an employee is scheduled to receive their performance review, if any. B-4 2 10. Fiscal Year: Fiscal year is the period July 1 thru June 30. 11. Nonexempt Employee: Any employee who is subject to the overtime pay provisions of the federal Fair Labor Standards Act. 12. Personnel Officer: The City Manager or their designee shall serve as the Personnel Officer as outlined in Municipal Code Section 2.46.030. 13. Reduction In Pay: A change in the salary of an employee to a lower rate within the same salary range. 14. Suspension: The temporary unpaid leave of absence for disciplinary purposes for a period not to exceed thirty (30) days per occurrence. 15. Work Week: A regular seven day period of 168 consecutive hours beginning 12:00 a.m. Sunday through 11:59 the following Saturday, the scheduling of part- time employee work hours within which may vary from time to time based on the workforce needs of the City as determined by the Department Head and/or City Manager. III. MANAGEMENT RIGHTS The City, through the City Council, possesses the sole right to operate the City and all management prerogatives remain vested with the City through the City Council and City Manager. In this context, except as specifically limited by express provision of this MOU, all management prerogatives, powers, authority and functions, whether heretofore exercised, and regardless of the frequency or infrequency of their exercise, shall remain vested exclusively with the City. It is expressly recognized that these rights, include, but are not limited to, the right to hire, direct, assign or transfer an employee; the right to lay off employees; the right to determine and change staffing levels and work performance standards; the right to determine the content of the workday, including without limitation, workload factors; the right to determine the quality and quantity of services to be offered to the public, and the means and methods of offering those services, the right to contract or subcontract City functions, including any work performed by employees; the right to discipline employees, including the right to reprimand, suspend, reduce in pay, demote and/or terminate employees; the right to relieve employees of duty, demote, dismiss or terminate employees for non-disciplinary purposes; the right to consolidate City functions; the right to determine City functions; the right to implement, modify and delete rules, regulations, resolutions and ordinances; the right to establish, change, combine wages or eliminate jobs, job functions and job classifications; the right to establish or change wages and compensation; the right to introduce new or improved procedures, methods, processes or to make technological changes; and the right to establish and change shifts, schedules of work, and starting and quitting times. IV. UNION RIGHTS A. Union Access to City Facilities 1. The parties recognize and agree that in order to maintain good employee relations, it is necessary for Union Business Representatives to have access to B-5 3 work locations, to confer with City employees during working hours, to post bulletins on the Union designated bulletin boards or assigned spaces on a designated bulletin board, inspect the working conditions, conduct worksite visits, investigate MOU violations, health and safety concerns, investigate and process grievances, or meet with members for the purpose of representing members in their relations with the City. Union may also have reasonable access to meeting rooms. 2. Union Business Representatives shall be granted access upon obtaining authorization from the Department Head and/or the Human Resources Manager prior to entering a work location and after advising of the general nature of the business. The Department Head and/or the Human Resources Manager shall not unreasonably withhold timely access to work locations. However, the Department Head and/or Human Resources Manager may deny access or terminate access to work locations if, in their judgment, it is deemed that the visit would unduly interfere with the efficiency, safety, or security of City operations. If a request is denied, then the Human Resources Manager and/or their designee shall establish a mutually agreeable time for access to the employee. 3. Union Business Representatives granted access to work locations shall limit such visits to a reasonable period of time, taking into consideration the nature of the concern, investigation, grievance or appeal. The Department Head and/or Human Resources Manager and/or their designees may mutually establish with the Union Representative reasonable limits as to the number of visits authorized with the same employee on the same issue, and reasonable limits as to the number of employees who may participate in a visit when several employees are affected by a specific issue. The City shall not unduly interfere with Union's right to access work locations, so long as such access does not interfere with the performance of City business. 4. The Union may select two (2) Unit employees as Shop Stewards. The Shop Stewards shall be given reasonable release time on paid status to attend meetings with management representatives, or to be present at grievance and/or discipline meetings where matters within the scope of representation or grievances or discipline are being considered. The use of official time for this purpose shall be reasonable and shall not interfere with the performance of City business. B. Bulletin Boards The Union shall be provided use of bulletin boards designated by the City to post materials related to Union business and of Union interest. The bulletin boards shall be placed in conspicuous and readily accessible locations. Postings will be consistent with professional standards while maintaining the Union's first amendment right and employee's right to organize. C. Distribution of Literature The Union's representatives may distribute literature in all areas accessed by employees. B-6 4 Distribution of literature will be consistent with professional standards while maintaining the Union's first amendment right. Distribution will not interfere with the City's efficiency in providing service to the community. D. Union Access to New Hires and Employee Information 1. The City will notify Union in writing or via email regarding all new hires at least ten (10) days prior to the employee's orientation unless there was insufficient time between employee's acceptance of offer letter and start date or there was an urgent need that was not reasonably foreseeable. Within the earlier of thirty (30) days after the date of hire or by the first pay period of the month following the hire of each newly hired employee, the City will provide the Union with the new employee's name, job title, department, work location, work email, and work phone numbers. No other information from the City is being requested by Union even though Union may be entitled to such additional information under law. 2. The new hire will receive a copy of the MOU with their new employee orientation packet. Union shall be permitted no less than thirty (30) minutes for each orientation session to privately talk to new bargaining unit members to explain the rights and benefits under the MOU. 3. The City will provide Union a quarterly list of all employees in the represented bargaining unit, including the employee's name, job title, department, work location, work email, and work phone number. The parties will mutually agree on a form to use to track said employee information. E. Dues Deduction 1. At Union's request, the City shall deduct membership dues, initiation fees, and general assessments, as well as payment of any other membership benefit program sponsored by Union, from the wages and salaries of members of Union to the extent that the employee's wages are sufficient to cover the deduction. Union hereby certifies that it has and shall maintain all such deduction authorizations signed by the individual from whose salary or wages the deduction is to be made and shall not be required to provide a copy of an individual authorization to the City unless a dispute arises about the existence or terms of the authorization. Union membership dues shall be deducted each pay period in accordance with City procedures and provisions of applicable law from the salary of each employee whose name is provided by Union. 2. The City shall provide for payroll deductions on each payroll period (twenty-six times per calendar year). The City shall remit the total amount of deductions to Union within thirty (30) days of the date of the deduction. Any changes in Union dues must be given to the City a minimum of thirty (30) days prior to change to accommodate changes to payroll. 3. Union shall indemnify the City from any claims relating to the City's compliance with this Dues Deduction provision, except for any claims arising from City's B-7 5 own negligence. F. Representative Rights 1. Employees shall not be able to represent themselves for the purposes of negotiating revisions to the terms of this MOU, also known as Direct Dealing or Individual Bargaining. 2. Employees shall be allowed reasonable release time, if scheduled to work, to discuss matters regarding items contained in this MOU or conditions of employment with the Union's representatives for clarification or assistance at any time upon advance notice to City and so long as City operations are not negatively impacted. G. Union Prohibited Conduct 1. The Union, its officers, agents, representatives and/or members agree that during the term of this MOU they will not cause nor condone any strike, walkout, slowdown, sick-out, or any other concerted job action by withholding or refusing to perform services. A violation of this Article by any Unit member shall constitute a cause for discipline, including termination. 2. In the event that the Union, its officers, agents, representatives and/or members cause or condone any employee strike, walkout, slowdown, sick- out, or any other concerted job action by withholding or refusing to perform services, the Union shall immediately instruct any persons engaging in such conduct that their conduct is a violation of this MOU, and require all such represented persons to immediately cease engaging in the prohibited conduct and return to work. H. Internet Use and Electronic Mail Employees are allowed to use City computers for legal internet and electronic mail access. No employee is allowed to download information from an unknown source. The City reserves the right to review any and all information contained on all City computers and no personal privacy is granted or guaranteed. Employees have no expectation of privacy in information contained in City computers. Any illegal use of the internet on any City computer may result in disciplinary action, which may include termination. V. COMPENSATION Employee compensation is set forth in a salary schedule of ranges established by Resolution of the City Council. Effective the date of the City Council adoption of this MOU by Resolution, the new hourly pay ranges for employees set forth in the accompanying salary schedule shall be implemented. A. Initial Employment The rate of compensation for initial employment in any represented classification B-8 6 shall be determined by the City Manager at their sole discretion based upon factors including but not limited to the experience, education, skills and ability of the incoming employee. B. Movement Within the Salary Range Employees will be eligible for a salary merit adjustment, provided they have demonstrated "meets expectations" or greater in every rating category of their annual performance evaluation. The specific salary merit adjustment is determined by an employee's most recent annual performance evaluation rating as further explained herein. C. Top of the Range In no case shall an employee's regular salary exceed the maximum of the range established by Resolution of the City Council. D. Hourly Wage Range Cost of Living Adjustment (COLA) Year One: • Effective the date of the City Council adoption of this MOU, the City shall provide a COLA to base hourly wage ranges for all classifications listed in Appendix A and the current hourly wage of all Union represented employees active at the time of adoption. The COLA percentage will not be less than 0% nor higher than a maximum of three percent (3%), as measured by the Consumer Price Index for All Urban Consumers ("CPI-U") reported by the U.S. Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim, CA metropolitan area covering the prior twelve month period of March to March. • Based on the above, the COLA for Year One will be 3.0%, effective the date of the City Council adoption of the MOU. Year Two: • Effective July 1, 2026, in lieu of a COLA, the City shall provide a one-time bonus of one hundred dollars ($100) to all Union-represented employees on payroll at that time. The bonus will be paid to all active employees on the pay date of July 17, 2026. Year Three: • Effective July 1, 2027, the City shall provide a COLA to base hourly wage ranges for all AFSCME classifications listed in Appendix A and the current hourly wage of all Union-represented employees active as of the effective date. The COLA percentage will not be less than 0% nor higher than a maximum of three percent (3%), as measured by the CPI-U reported by the U.S. Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim, CA metropolitan area covering the prior twelve-month period of March to March. B-9 7 E. Non-Exempt Employees Overtime 1. Nonexempt employees shall receive overtime compensation in accordance with the federal Fair Labor Standards Act. Accordingly, nonexempt employees shall be paid one and one-half (1 ½) times their regular rate of pay or receive compensatory time off at one and one half (1 ½) hours for all hours worked in excess of forty (40) in the work week. 2. Overtime Pay: a) Overtime shall be defined as any combination of actual hours worked, which exceeds forty (40) hours in any work week. b) Work in excess of forty (40) hours in the workweek requires prior approval of the nonexempt employee's Department Head or the City Manager. F. Acting Pay Upon written designation/approval of the Department Head and the City Manager, an employee who performs the duties of a position with a higher classification for a period of one (1) calendar month or more and not to exceed the time limits as defined by CalPERS, shall receive compensation as specified below: 1. The employee shall be compensated at a level within the higher classification as will accord such employee an increase of at least five percent (5%) over their current rate of compensation, provided that the salary does not exceed the maximum amount of compensation within the new salary range. 2. Upon meeting the one calendar month eligibility period, such acting pay compensation shall be retroactive to the first day of the acting assignment through the duration of the assignment. G. Performance Evaluations 1. An employee shall receive an annual performance evaluation once the employee has completed 750 work hours (starting on the employee’s anniversary date) or one year of employment, whichever occurs later. 2. Employees shall be eligible for salary merit advancement within an individual salary range based upon their performance evaluation and meritorious performance as follows: • Meets Expectations (Satisfactory): 1% - 2.5% • Exceeds Expectations (Good): 2.5% - 5% 3. No employee may receive a Meets Expectations or higher rating where they have an individual category rating of less than Meets Expectations. B-10 8 4. Employees are entitled to file a rebuttal to any performance evaluation within thirty (30) days of receiving the evaluation. 5. Any employee receiving a less than Meets Expectation rating shall be re- evaluated in six (6) months. 6. The City Manager shall retain the sole discretion to approve salary merit bonuses for employees at the top of their salary range on an annual basis. H. Promotional Advancement When an employee is promoted from employment in one classification or classification job series to employment in a classification or classification job series assigned a higher salary range, advancement shall be at least five percent (5%) over their current rate of compensation, provided that the salary does not exceed the maximum amount of compensation within the new salary range. In the event this unlikely situation occurs, the parties agree to meet and confer to address. VI. BENEFITS A. Health Insurance Plans Employees working the required number of hours for participation as defined by the federal Affordable Care Act ("ACA"), will be eligible to participate in the City's group medical plan, which does not include dependents. The City currently pays the entire premium for eligible employees. The City does not guarantee or in any other way promise to employees the hours necessary to qualify for this benefit. 1. The City has five (5) medical plans available to eligible employees (3 HMO's, 1 traditional PPO, and 1 high deductible PPO). 2. The high deductible PPO plan option comes with a Health Savings Account (HSA) that is funded by the City. The City's annual contribution to an eligible employee's HSA plan is $4,300 for single coverage or $8,550 for eligible employees and dependent coverage. Furthermore, the City’s annual contribution in future calendar years may be established by City Council Resolution, and any such contribution amount shall automatically supersede the prior year’s contribution without the need to amend this MOU. Eligible employees can make additional contributions, on a pre-tax basis, to their HSA account through payroll deductions, up to the IRS limits, based on their age (50+) and coverage level. B. Employee Assistance Program The City shall provide an Employee Assistance Program at no cost to all employees and employee families. B-11 9 C. Life Insurance Employees are eligible for life insurance on the first of the month following their hire date. The City pays the entire premium on a life insurance policy with a benefit of twice the employee's annual City compensation/salary, up to a maximum benefit of $350,000. D. Accidental Death and Dismemberment Employees are eligible for AD&D insurance on the first day of the month following their date of hire. The City pays the entire premium on an AD&D insurance policy. The benefit amount is based on the actual loss, up to a maximum benefit of $350,000. E. Short-Term Disability Insurance All employees are required to participate in the California State Disability Insurance (SDI) program, which provides partial salary replacement benefits when an employee is disabled due to a non-work-related illness or injury. The program is funded by employee payroll deductions from the employee's bi-weekly paycheck until a cap established by the State is reached. The benefits and terms are established by the State. F. California Public Employees' Retirement System (CalPERS) Employees are eligible to be enrolled in the City's retirement system, CalPERS, if they meet the required number of hours worked in a fiscal year as determined by the job classification. The retirement plan is provided under contract with CalPERS. The City pays the employer portion of the CalPERS contribution for eligible employees. Eligible employees pay their employee portion, as determined by statute and CalPERS contract. In the event of any conflict between this summary and either the City's contract with CalPERS or law, the contract or law, as applicable, will prevail and apply. The City does not guarantee employees the required number of hours to meet eligibility for any of these plan tiers. 1. Tier 1 - Eligible employees hired prior to October 6, 2012 are subject to the first tier benefit formula of 2.5%@55 with final compensation determined by the average of the 12 highest paid consecutive months (single highest year). The employees will be required to contribute eight percent (8%) of their base salary toward the pension benefit. 2. Tier 2 - Eligible employees hired on or after October 6, 2012 who are not defined by CalPERS as "new members" are subject to the second tier benefit formula of 2%@60 based on the average monthly pay rate for the 36 highest paid consecutive months (3-year final compensation). The employees will be required to contribute seven percent (7%) of their base salary toward the pension benefit. 3. Tier 3 - Pursuant to the Public Employees' Pension Reform Act of 2012 (PEPRA), on and after January 1, 2013, eligible employees who are defined by CalPERS as "new members," are subject to the reform tier benefit formula of 2%@62 based the average monthly pay rate for the 36 highest paid consecutive months (3-year B-12 10 final compensation) and other PEPRA required terms. In addition, new members will be required to pay one half (1/2) of the total normal cost rate for their pension benefit. That rate is determined by CalPERS and will be communicated to the Union (and as it is adjusted in the future) once it is known by the City. As defined by CalPERS, a "new member" is: a) An individual who becomes a member of any public retirement system for the first time on or after January 1, 2013, and who was not a member of any other public retirement system prior to that date. b) An individual who becomes a member of a public retirement system for the first time on or after January 1, 2013, and who was a member of another public retirement system prior to that date, but who was not subject to reciprocity, as provided under PEPRA. c) An individual who was an active member in a retirement system and who, after a break in service of more than six months, returned to active membership in that system with a new employer. G. Tuition Reimbursement The City provides a tuition reimbursement program to encourage employees to pursue professional growth and development through accredited academic coursework. All coursework must be related to the employee’s current job within the City and be pre-approved by Human Resources prior to enrollment to ensure it is reimbursable. Class time must not interfere with the employee's normal duties, unless specifically authorized by the City Manager. The maximum amount of reimbursement in an academic year shall not exceed $1,000 per employee participating in the program and is subject to final authorization by the City Manager and the availability of available funds for this tuition reimbursement program. The total amount of funds available for the tuition reimbursement program is established each year by the City Council as part of the City's operating budget. A passing grade, or a certificate of completion for courses that do not bear credit, is required to receive payment. Effective July 1, 2025, employees must work a minimum of 500 hours in a fiscal year to be eligible for this program and maintain those hours during the one-year period following the reimbursement. The reimbursement will require a one-year claw back provision that will be reduced on a pro-rata basis over the one-year period following reimbursement, in the event the employee resigns from City employment within that one-year period. H. Workers' Compensation and Unemployment Insurance 1. Coverage: The City provides workers' compensation and unemployment insurance to all eligible employees in accordance with California law. B-13 11 2. On-the-Job Injuries: All injuries suffered during working hours must be promptly reported to the employee's supervisor and by notifying the Department Head, and Human Resources/Risk Manager. If the injury requires immediate medical attention, employees should call 9-1-1 for emergency medical services. For non- emergency injuries, employees should promptly report the injury to the 24/7/365 on-call reporting center (currently “Company Nurse”). Unless there is an emergency, a City referral form must be obtained from the Personnel office before visiting a doctor. Upon returning to work from all on-the-job injuries, employees must have an approved return to work certificate signed by the attending doctor. I. Uniforms Employees may be required to wear uniforms. Personal outerwear may be permitted over uniforms, only during wet weather conditions. When required to wear uniforms, the City shall provide such uniforms at no expense to the employees. Replacement uniforms may be provided as needed upon request by employee and justification as determined by Department Head and/or their designee. Uniform replacement request shall not be unreasonably denied. J. Boot Reimbursement Employees may be required to wear work boots and those determined to need boots are provided them on a reimbursement basis, with required receipts for same, shall receive one (1) set of work boots per year, up to a maximum of $150 per pair, as determined and approved by the City at no employee expense. Additional boots may be authorized as needed upon request by employee and with justification as determined by Department Head and/or their designee. An additional set of work boots are paid up to $150 maximum reimbursement per pair, per year, due to extreme wear. VII. INCENTIVE PAY PROGRAM A. From time-to-time, the City Manager may grant an incentive pay award to any Employee in recognition for extraordinary work based upon a nomination. B. The City Manager shall approve the amount of incentive pay per employee award. However, in no case shall the incentive pay exceed five percent (5%) of an employee's base salary. C. Employees shall be limited to no more than two (2) incentive bonus pay awards in a fiscal year, not to collectively exceed a total of 5% of an employee's base salary. VIII. EMPLOYEE EXPENSES A. Mileage and Parking Expenses Employees required to use their private automobile for City assignments shall be reimbursed for mileage at the current standard mileage rate set by the Internal Revenue B-14 12 Service and actual parking expenses for work during shift hours, but not for arriving to or departing from the City before and after their work shift. 1. All claims for mileage and parking reimbursement shall first be approved in writing by the employee's supervisor, Department Head or the City Manager, and shall be filed on forms and in accordance with the procedures established by the City Manager. 2. Employees using their private automobile for City business shall only be eligible if the employee supplies the Personnel Officer with a Certificate of Insurance stating that their private transportation is covered by public liability and property damage insurance of not less than the amount required in the procedures established by the City Manager, established in coordination with the City's liability coverage pool. IX. AT-WILL STATUS OF EMPLOYEES Employees remain at-will employees and are not afforded any rights, benefits, notice and/or appeal procedures afforded full-time employees except as expressly provided herein, but instead may be discharged by their Department Head or the appointing authority (as defined in the City's Municipal Code) at any time with or without notice or cause. In addition, employees as part- time employees are not guaranteed any specific number of hours per day or week and work those hours determined by the City as necessary to its functions in its sole discretion. In turn, all employees subject to this MOU are entitled to end their employment relationship with the City at any time, with or without notice or cause. No provision of this MOU shall be deemed to confer upon any employees any property rights in employment. All employees serve at the pleasure of their Department Heads and the City Manager. X. LEAVES Except as otherwise permitted by law, all requests for leave shall be in writing, and shall be sent to the employee's supervisor or Department Head or their designee. The request shall include the expected start and end dates of the leave, and any medical certifications required by the provisions of this MOU or City Policy. An employee shall provide as much advance notice of the need for leave as practicable. Generally, when the need for the leave is foreseeable, the employee shall try to provide at least ten (10) days' notice prior to the commencement of the leave. Failure to provide advance notice of the need for leave may be grounds for delaying the start of the leave. A. Vacation Leave Employees are not entitled to accrue paid vacation leave. B. Sick Leave 1. Per state law, part-time employees who work for their employer for thirty (30) days or more within a year of commencement of employment are entitled to paid sick B-15 13 days under certain conditions. 2. An eligible employee shall accrue paid sick days at the rate of one (1) hour per every thirty (30) hours worked, beginning at the commencement of employment and will accrue such paid sick leave for use beginning on the ninetieth (90th) day of employment or as permitted by law. 3. All paid sick leave is capped at eighty (80) hours per calendar year, including if rolled over from the prior year, and has no vested interest or cash value. 4. Employees are limited to use forty (40) hours of sick leave in each year of employment. 5. In order to receive paid sick leave, an employee must speak with their supervisor at the earliest possible time, generally two (2) hours before start of the employee's shift that the leave will be used. Alternatively, an employee must leave a voicemail with their supervisor and then call their Department Head. Such notice shall provide the fact and the reason for the leave and duration of the leave. Failure to provide reasonable notice will be cause for denial of sick leave with pay for the period of the absence. Written verification of the cause of absence may be required by the Department Head or City Manager. 6. Employees shall not be granted, and accordingly are not entitled to take, paid sick leave in advance of its accrual. 7. Employees who use more than twenty-four (24) consecutive sick hours shall be required to furnish a physician's certificate stating that the employee is able to safely return to work. A physician's certification may be requested if a supervisor has reason to believe that sick leave is being abused. Regardless of the length of the sick leave used, the supervisor has the authority to determine if the employee is abusing the sick leave benefit. 8. Sick leave must be used in a minimum of fifteen (15) minute increments just like the reporting of regular hours worked. 9. Sick leave may be used for medical appointments, pregnancy disability leave, leaves provided pursuant to the federal and California family and medical leave statutes and to care for an employee's spouse, child(ren), parent(s) or spouse's child(ren) or parent(s) due to illness. 10. Upon termination or dismissal from employment, employees shall not be granted, and accordingly are not entitled to be paid for accumulated sick leave. 11. A part-time employee who is hired to a full-time position with the City may transfer remaining accrued part-time sick leave hours to the employee’s full- time sick leave bank. B-16 14 C. Bereavement Leave In the event of a verified death in an employee's family, upon request, the City shall grant up to five (5) workdays of bereavement leave, as provided below: 1. To be eligible for this leave, an employee must be employed by the City for at least thirty (30) days prior to the commencement of the leave. 2. For the purpose of this Article, the term "family" shall be defined as spouse, child, parent, sibling, grandparent, grandchild, parent of a spouse, registered domestic partner, and parent of a registered domestic partner. 3. For employees, the bereavement leave shall be unpaid, except that an employee may use accrued and available paid sick leave for some or all of the leave. 4. The days of bereavement leave need not be consecutive but the bereavement leave must be completed within three (3) months of the date of death of the employee's family member. 5. The City may require, within thirty (30) days of the first day of the leave, that the employee provide documentation of the death of the family member, such as a death certificate, a published obituary, or written verification of death, burial, or memorial services from a mortuary, funeral home, burial society, crematorium, religious institution, or governmental agency. D. Jury Duty 1. Employees called for jury duty shall give the Department Head or City Manager reasonable advance written notice of their obligation to serve. Employees will be paid their regular wages, less jury duty pay (other than mileage or subsistence allowances) or may elect to forfeit the jury duty warrant to the City and receive full City wages for any normal work shifts missed because of jury service up to three (3) weeks of pay. 2. Written evidence of jury duty attendance shall be presented to the Personnel Officer. 3. Employees shall continue to report to work on those days when excused from jury duty, and on which the employee can work at least four (4) hours during their regular workday. E. Leave of Absence without Pay The City Manager, after consultation with the employee's Department Head, may grant an employee a leave of absence without pay for a period not to exceed four (4) months in accordance with the workforce needs of the City. Additionally, the City Manager may apply such conditions as they deem warranted in the best interest of the City. No such B-17 15 leave shall be granted except upon written request of the employee with explanation for the need for the leave. Leave under this section shall only be granted to an employee under circumstances where the employee is not otherwise eligible for pregnancy disability leave or family and medical leave as provided under applicable law and Rule VII, Sections 8 (Pregnancy Disability Leave) and 11 (Family and Medical Leave) of the Personnel Rules. Approval shall be in writing and a copy filed with the Personnel Officer. 1. A leave of absence without pay shall not be construed as a break in service or employment, however, paid leave benefits, increases in salary, and other similar benefits shall not accrue to a person granted such leave during the period of absence. An employee shall stop accruing seniority after thirty (30) days on a leave of absence without pay. 2. Use of a leave of absence without pay for a purpose other than that requested may be cause for forfeiture of reinstatement rights. Failure on the part of an employee on leave to report to work promptly at its expiration may be cause for discharge. 3. An employee reinstated after a leave of absence without pay shall receive that same pay rate in the salary range that they received when the leave of absence began unless the pay increase is awarded by this MOU. Time spent on such leave without pay shall not count towards service for increases within the salary range, and the employee's evaluation date shall be set forward one (1) month for each thirty (30) consecutive days taken. 4. The City shall maintain group health insurance coverage for any employee (including dependent coverage) who is already receiving such coverage while the employee is taking a medical leave of absence under this section at the level and under the conditions coverage would have been provided by the City if the employee had not taken such leave. In the event an employee does not return to work following the leave, the City reserves the right to recover the premiums or other sums the City paid for group health insurance coverage during the period of the leave. 5. The employee is responsible to pay the entire cost of all applicable health and life insurance premiums and other insurance premiums (such as long term disability and accidental death and dismemberment) which were previously being paid during a non-medical leave of absence without pay that exceeds thirty (30) days. In addition, in advance of taking the leave, the employee must make written arrangements with the Finance Department to pay for the costs of such coverage. Premiums shall be paid within the time specified by the City or as otherwise required by the applicable insurance or benefit program. 6. If the leave of absence without pay was for medical reasons, prior to resuming regular duties, an employee shall furnish the Personnel Officer a physician's certificate stating that the employee is able to return to work. B-18 16 F. Military Leave Military leave shall be granted in accordance with applicable federal and California law. G. Holiday Overtime (Admin Instruction 2-06) Regardless of the number of hours worked during the work week, Employees who work on a City holiday designated below shall be paid their regular hourly rate and one and one half (1½) times their regular hourly rate of pay for all hours worked on the holiday: a) Martin Luther King Jr. Day (Third Monday of January) b) President’s Day (Third Monday of February) c) Memorial Day (Last Monday of May) d) Independence Day (July 4th); e) Labor Day (First Monday of September) f) Veteran’s Day (November 11th) g) Thanksgiving Day (Fourth Thursday of November) h) The day after Thanksgiving (Fourth Friday in November) i) Christmas Eve (December 24th) j) Christmas Day (December 25th) k) New Year's Day (January 1st ) H. Family and Medical Leave Family and medical leave will be granted in accordance with the City's Family and Medical Leave Policy and applicable law. XI. LAYOFF A. Whenever in the judgment of the City Council it becomes necessary in the interest of economy, because the necessity for a position no longer exists or other legitimate purpose, the City Council may abolish any position in the City; and the employee holding such position or employment may be laid off without taking disciplinary action and without the right of appeal. Except as otherwise determined by the City Council, the City Manager, when it becomes necessary in the interest of economy, because the necessity for a position no longer exists or for other legitimate purpose, may abolish any position or employment in the City and may lay off an employee holding such position or employment without taking B-19 17 disciplinary action and without right of appeal. B. If an employee believes that their layoff is contrary to federal or state law or City policy, they may file a grievance based solely on the narrow issue of the alleged violation federal or state law or City policy. Otherwise, employees shall have no other rights relative to the termination of their at-will employment by means of a layoff. XII. WORK SCHEDULES, MEAL & REST PERIODS AND ATTENDANCE A. Work Schedules 1. All work shifts shall have a designated start and end time, but some events and/or rentals may require employees to stay longer than scheduled. 2. All work shifts are subject to change due to unexpected change in need such as weather impacts, canceled events, canceled rentals, pandemic issues, event of Force Majeure, etc. 3. Employees work part-time schedules during the entire workweek and across different shifts each day and with work days and work shifts sometimes changing by season. Accordingly, there are no guaranteed work hours, shifts or days. Work schedules are determined in advance by the Employee's Department Head and/or their designee. B. Meal & Rest Periods 1. Meal Period: Meal periods for part-time employees are dependent upon the particular shift, work location, and whether the employee has meal period coverage. Generally, an uninterrupted, uncompensated meal period of thirty (30) minutes will be provided for every shift of six (6) or more hours. The meal period may not be combined with a rest period or used to compensate for a late arrival or early departure from work. Any waiver of the meal period must be confirmed by the employee in writing, except when there is a lack of coverage for a shift, as determined by the Department Head. In the event that an employee is required to work during a meal period, such time worked shall be compensated at the employee’s hourly rate and the employee may be permitted to eat meal during the working meal period. 2. Rest Periods: Rest periods for part-time employees are dependent upon the particular shift, work location, and whether the employee has rest period coverage. Scheduling of breaks will be at the discretion of the Department Head or direct supervisor. Generally, an uninterrupted, compensated rest period of fifteen (15) minutes will be provided for every shift of four (4) or more hours. The rest period may not be combined with a meal period or used to compensate for a late arrival or early departure from work. Rest periods shall have no monetary value and shall be forfeited if not used during the work period. B-20 18 C. Attendance Failure of an employee, who is absent without leave, to return to work within 24 hours of notice to return, or failure to request leave of absence within the same period, shall be cause of disciplinary action, including discharge. Employees who leave during work hours without first notifying and receiving prior approval from their supervisor or Department Head of their whereabouts are subject to appropriate disciplinary action, including discharge. XIII. GRIEVANCE PROCEDURES A. Purpose of Grievance Procedure The grievance procedure shall be used to resolve employee complaints concerning the express terms and condition of employment with the City. The grievance procedure shall not be used for resolving any complaint concerning disciplinary action. Except as otherwise provided in this MOU, the grievance procedure may be utilized to resolve alleged: 1. Improper application of rules, regulations and procedures. 2. Unfair treatment, including coercion, restraint and reprisal. 3. Improper procedures utilized in employee layoff. 4. Discrimination because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, reproductive health decision making, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or veteran or military status of any person or because of any other statutorily or constitutionally impermissible basis. 5. Any manner affecting an employee's: a) Work schedule; b) Fringe benefits; c) Holidays; d) Sick Leave; and/or e) Retirement. 6. Any alleged violation of this MOU. 7. Any other matter regarding the terms and conditions of employment. B-21 19 B. Informal Discussion of Grievance 1. When an employee has a grievance, the employee shall first informally discuss the matter with the employee's immediate supervisor within ten (10) days from the date of the incident or decision generating the grievance. If, after a discussion with the immediate supervisor, the grievance has not been satisfactorily resolved, the employee shall have the right to informally discuss the grievance with the supervisor's immediate superior. The informal discussion with the supervisor's immediate superior shall occur within twenty (20) days from the date of the incident or decision generating the grievance. If, after such a discussion, the grievance has not been satisfactorily resolved, the employee shall have the right to file a formal grievance. 2. If an employee's grievance is with their immediate supervisor or the supervisor's immediate superior, or the supervisor's immediate superior is the Department Head, they may skip to the next step of the grievance procedure as appropriate. C. Formal Grievance Procedure The formal grievance procedure shall be used to resolve an employee's grievance not satisfactorily resolved by informal discussion or where Section B2 applies above. 1. An employee shall have the right to present a formal grievance in writing to their Department Head within thirty (30) days from the date of the incident or decision generating the grievance. All formal grievances shall state the factual reasons for the grievance, the alleged violations, and the employee's requested remedy and be signed by the employee. 2. The formal written grievance shall be timely presented to the Department Head. When the employee presents a formal grievance to their Department Head, the Department Head shall discuss the grievance with the employee within ten (10) days of receipt. The employee's labor representative may file a grievance on the employee's behalf, but the employee must still sign it. Within ten (10) days after meeting with the employee regarding the formal grievance, the Department Head shall render a written decision. 3. If the employee is unsatisfied with the decision of the Department Head, then they shall have the right to present the formal grievance to the City Manager within five (5) days from the date of the decision of the Department Head. The employee shall provide the City manager with a copy of the original grievance, the response from the Department Head, and state in writing any and all objections to, and/or dissatisfaction with, the decision of the Department Head. 4. When the employee presents the formal grievance to the City Manager, the City Manager or their designee shall discuss the grievance with the employee. Within fifteen (15) days after receipt of the formal grievance and related materials, the City Manager and/or their designee shall render a written decision. The decision B-22 20 of the City Manager and/or their designee shall resolve the grievance and no further administrative review of the subject matter of the grievance shall be permitted. 5. The employee and the City have the right to representation at any step in the grievance process. 6. Any grievance not filed or taken to the next step by the employee within the specified time limits shall be deemed settled on the basis of the last decision, and not subject to further consideration or reconsideration. Grievances settled based on not being filed or taken to the next step, shall not set precedent for future grievances. By mutual agreement and for good cause, reasonable extensions of time may be given in writing by the applicable parties at each step in the grievance procedure. 7. An employee who has filed a grievance shall suffer no discrimination for filing the grievance. This grievance process does not waive the employee's rights to file any claim with appropriate state and federal agencies. XIV. DRESS CODE A. All employees must present a professional appearance by wearing appropriate and clean attire for the position held and tasks to be completed. Attire should be considered business. If a uniform is required, then it should be well maintained and worn in a presentable fashion. Matters of employee attire will be managed at the department level. B. Examples of appropriate office attire include slacks or khakis; dress shirt or blouse; open- collar or polo shirt; optional tie or sport coat; a dress or skirt at knee-length or below; a tailored blazer, knit shirt or sweater; loafers or dress shoes that cover all or most of the foot. Examples of inappropriate attire include t-shirts; gym or sweat clothing, including work out wear; halter tops, tank tops or crop tops; leggings or spandex (except with dresses); low back dresses, blouses, or shirts; sheer, see through or revealing clothing; shorts; and casual sandals (flip flops). Hats are not acceptable, unless they are part of a uniform. Jeans and athletic shoes for office personnel are limited to "Friday" casual, unless the position held requires jeans and/or athletic shoes. XV. ADMINISTRATIVE INSTRUCTIONS AND DEPARTMENTAL POLICIES Employees are subject to the following Administrative Instructions and Department policies to ensure the appropriate, uniform, and safe operations of the City, which include, but are not limited to the following: A. Administrative Instructions Without limiting the application of other Administrative Instructions, unless otherwise inconsistent with this MOU or the law, employees are subject to Administrative Instructions: 2-06 (Part-Time Employees), 2-03 (Workers' Compensation Claims Procedures), 2-09 B-23 21 (Gifts), 2-10 (Policy Against Harassment in the Workplace), 2-12 (Outside Employment), 2- 13 (Pets), 2-14 (Bulletin Boards), 2-15 (Employee Incentive Program), 2-18 (Policy Against Violence in the Workplace), Admin Instruction 2-19 (Part Time, Seasonal, and Temporary employee Sick Leave), 7-01 (Safety Program), 7-04 (Accident Reports - Vehicle), 8-01 (Use of City Vehicles), 8-02 (Use of Employees Vehicles for City Business), 8-05 (Computer Network Use), 8-07 (Electronic Mail and Internet Use), and 8-08 (Use of City mobile telephones) to the extent such instructions are not inconsistent with this MOU. Copies of the current Administrative Instructions are available in the Administrative Instruction Manual and from the Human Resources Office. B. Departmental Policies and Procedures Where a department or work group has adopted employment and workplace policies, procedures or other instructions, employees within that group are subject to those policies, procedures and instructions. XVI. WRITTEN NOTICE Any written notice required to be given by the provisions of this MOU, unless herein otherwise specifically provided, may be given either by personal service or by mail. In the case of service by mail, the notice must be deposited in the United States mail, in a sealed envelope, with postage prepaid; addressed to the person on whom it is to be served; at the address in any notice given by them of their last known address, and, if there be no last known address, then addressed to them at the City (if still associated with the City in some capacity). Service by mail shall be deemed complete at the time of the deposit in the mail. XVII. OUTSIDE EMPLOYMENT (ADMIN INSTRUCTION 2-12) Employees shall be allowed to engage in employment other than their job with the City, with the understanding that such outside employment does not interfere with the performance of assigned duties and does not constitute a conflict of interest. The employee must notify their Department Head and copy the City Manager in writing regarding their outside employment. XVIII. SAVINGS CLAUSE AND SEVERABILITY Any provision of this MOU, which conflicts with any State or Federal statute, or Executive Order having the same effect as law, now existing or hereinafter enacted, or declared by a court of competent jurisdiction to be unlawful, unenforceable or not in accordance with applicable statutes shall not affect the remainder of the MOU which shall remain in full force and effect for the term of the MOU. The parties will meet as soon as practical to negotiate the effects of any invalidated provision. XIX. JOINT DRAFTING In recognition of the fact that the parties had an equal opportunity to negotiate the language of, and draft, this MOU, the parties acknowledge and agree that there is no single drafter of this B-24 22 MOU and, therefore, the general rule that ambiguities are to be construed against the drafter is, and shall be, inapplicable. If any language in this MOU is found or claimed to be ambiguous, each party shall have the same opportunity to present evidence as to the actual intent of the parties with respect to any such ambiguous language without any inference or presumption being drawn against any party hereto. XX. MODIFICATION This MOU may only be modified or amended by written agreement between the parties which must then be ratified by the Union and formally approved by resolution of the City's City Council. XXI. JOB DESCRIPTION Class Specifications: The classification plan shall consist of job specifications, which shall set forth a descriptive title, typical duties and responsibilities, essential functions of the position, and the training, experience, and other qualifications necessary or desirable for the effective performance of each position within a classification. XXII. REOPENERS The parties agree to reopen the contract for the purpose of the following: A. Updating the City's Personnel Rules The City's labor relations representatives and the Union's representatives have met and conferred in good faith on wages, hours and other terms and conditions of employment for the Unit members represented by the Union and have reached agreements which are set forth in this MOU. This MOU, when executed by the City's labor relations representatives and the Union's representatives, constitutes a joint recommendation therefrom, after ratification of the Union's membership, to be submitted to the City Council for its determination and approval by resolution. This MOU is of no force or effect unless or until approved and adopted by a resolution of the City Council. B-25 23 XXIII. SIGNATURE PAGE American Federation of State, County and Municipal Employees, District Council 36 (AFSCME) July 1, 2025 to June 30, 2028 City of Rancho Palos Verdes AFSCME District Council 36 _______________________________________ __________________________________ Ara M. Mihranian, City Manager Cory Cordova, AFSCME DC 36 Business Representative _______________________________________ __________________________________ Pam K. Lee, Chief Negotiator Quentin Thelen, Organizing Committee _______________________________________ __________________________________ Catherine Jun, Deputy City Manager Dana Torrey, Organizing Committee _______________________________________ Vina Ramos, Director of Finance _______________________________________ Vanessa Godinez, Human Resources & Risk Manager B-26 24 XIV. APPENDIX A (PART-TIME CLASSIFICATIONS REPRESENTED BY AFSCME) 1. Code Enforcement Officer 2. Information Technology (IT) Specialist 3. Open Space and Trails Crew Lead 4. Open Space and Trails Worker 5. Permit Clerk 6. Public Safety Liaison 7. Public Safey Field Training Officer 8. Park Ranger 9. Recreation Leader 10. Recreation Specialist 11. Senior Recreation Leader 12. Senior Staff Assistant 13. Staff Assistant 14. Television Producer 15. Television Producer (On-Camera) B-27 RESOLUTION NO. 2026-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ACCEPTING, APPROVING, AND ADOPTING THE COMPENSATION AND BENEFITS FOR THE UNREPRESENTED AND CONFIDENTIAL PART- TIME HUMAN RESOURCES SPECIALIST CLASSIFICATION FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2028 WHEREAS, the City and the American Federation of State, County and Municipal Employees (AFSCME) District Council 36 have successfully met and conferred to negotiate a Tentative Agreement on a successor AFSCME MOU for the period of July 1, 2025 through June 30, 2028 (Fiscal Year (FY) 2025-28 AFSCME MOU) pursuant to the Meyers-Millais-Brown Act (MMBA) (Government Code sections 3500-3511) and the City’s Employer-Employee Relations Resolution No. 2018-23; and WHEREAS, the City’s labor representatives and AFSCME representatives prepared a written Tentative Agreement regarding the terms for the successor FY 2025-28 AFSCME MOU , which was ratified on March 6, 2026 by the AFSCME membership, and then adopted by the City Council on March 17, 2026; the FY 2025-28 AFSCME MOU was adopted by the City Council on April 7, 2026 per Resolution No. 2026-___; and WHEREAS, the City Council desires to move the part-time classification of Human Resources Specialist out of AFSCME and into an unrepresented and confidential group, as well as approve similar amended compensation and benefits, as are provided to AFSCME represented employees. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The recitals set forth above are true and correct and incorporated herein by this reference. Section 2: The City Council approves the following amended compensation and benefits for the Human Resources Specialist: • Cost of Living Adjustments (COLAs) Year 1 – Effective the date of the City Council adoption of the FY 2025-28 AFSCME MOU, provide a Cost of Living Adjustment (COLA) of between 0% to 3%, as measured by the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Long Beach-Anaheim metropolitan area covering the prior twelve month period March to March. Year 2 – Effective July 1, 2026, in lieu of a COLA, the City shall provide a one hundred dollar ($100) bonus if employment status is active as of July 1, 2026. Year 3 – Effective July 1, 2027, provide a COLA of between 0% to 3%, as measured by the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles- Long Beach-Anaheim metropolitan area covering the prior twelve-month period March to March. C-1 • Performance Evaluations An employee shall receive an annual performance evaluation once the employee has completed 750 work hours (starting on the employee’s last performance evaluation due date) or one year of employment, whichever occurs later. • Tuition Reimbursement The City agrees to increase employee tuition reimbursement up to $1,000 per academic year for coursework related to the employee’s job and be pre-approved prior to enrollment to ensure it is reimbursable. The reimbursement will require a one- year claw back provision that will be reduced on a pro-rata basis over the one-year period, in the event the employee leaves City employment within that 1-year period. Effective July 1, 2025, employees must work a minimum of 500 hours in a fiscal year to be eligible and maintain those hours during the one-year period following the reimbursement. • Sick Leave Eligible employees shall accrue paid sick days at the rate of 1 hour per every 30 hours worked, beginning at the commencement of employment and will accrue such paid sick leave for use beginning on the ninetieth (90th) day of employment or as permitted by law. All paid sick leave is capped at eighty (80) hours per calendar year, including if rolled over from the prior year, and has no vested interest or cash value. Employees are limited to use forty (40) hours of sick leave in each year of employment. If hired to a full-time position with the City, employees may transfer remaining accrued part-time sick leave hours to the employee’s full-time sick leave bank. • Additional Federal Holidays The City agrees to observe three (3) additional federal holidays, Martin Luther King Jr. Day, Presidents Day, and Veterans Day. The City agrees to pay holiday overtime pay for working any hours during an observed holiday. All other compensation and benefits not expressly amended or addressed in this resolution shall be the same as the FY 2025-28 AFSCME MOU. Section 3: The City Clerk shall certify to the adoption of this Resolution and deem it effective as of July 1, 2025, the same shall be in force and effect. C-2 PASSED, APPROVED, and ADOPTED this 7th day of April 2026. Paul Seo, Mayor ATTEST: Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, THERESA TAKAOKA, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2026- ___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on April 7, 2026. Teresa Takaoka, City Clerk C-3 RESOLUTION NO. 2026- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2025-90 THAT UPDATES THE SALARY SCHEDULE FOR ELIGIBLE PART-TIME EMPLOYEES TO REFLECT A THREE PERCENT COST OF LIVING ADJUSTMENT EFFECTIVE APRIL 7, 2026. WHEREAS, the City Council adopted Resolution No. 2025-90 on December 16, 2025 that sets an updated Salary Schedule (for full-time and part-time employees); and WHEREAS, the City Council now desires to amend the City’s Salary Schedule to reflect updated salary ranges for all eligible part-time employees including a confidential, unrepresented Human Resources Specialist and members represented by the American Federation of State, County and Municipal Employees (AFSCME) District Council 36, based on a cost of living adjustment (COLA) wage increase of three percent (3%) effective the date of the City Council approval of the successor Memorandum of Understanding (MOU) for fiscal years 2025-2028; and WHEREAS, Section 36506 of the California Government Code requires that the City Council fix the compensation of all appointive officers and employees by resolution or ordinance; and, WHEREAS, Rule V of the Personnel Rules of the City provides that in order to amend the City’s Salary Schedule, those amendments must be made via Resolution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The salary and hourly ranges for the City job classifications as set forth in Exhibit “A” which are attached hereto and incorporated herein by this reference, are adopted on April 7, 2026 and are effective as of April 7, 2026. Section 2: Resolution No. 2025-90 is hereby amended, restated, and superseded and replaced by this resolution to reflect updated salary ranges for all eligible part-time employees including a confidential, unrepresented Human Resources Specialist and members represented by the American Federation of State, County and Municipal Employees (AFSCME) District Council 36, based on a three percent (3%) COLA effective April 7, 2026. Section 3: This resolution shall be effective on April 7, 2026. The City Clerk shall certify the adoption of this Resolution. D-1 PASSED, APPROVED and ADOPTED this 7th day of April, 2026. _____________________________ Paul Seo, Mayor Attest: ____________________________ Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2026-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on April 7, 2026. __________________________ Teresa, Takaoka, City Clerk D-2 COMPETITIVE POSITIONS (RPVEA)MINIMUM ANNUAL SALARY SALARY Accountant $89,816 $116,761 Accounting Clerk $61,419 $79,845 Accounting Manager $116,529 $151,487 Accounting Technician $69,522 $90,378 Administrative Analyst $87,057 $113,173 Administrative Assistant $72,747 $94,570 Assistant Engineer $99,766 $129,697 Assistant Planner $85,453 $111,089 Associate Engineer $113,744 $147,867 Associate Planner $95,033 $123,543 Building Inspector $82,978 $107,865 Cable TV Station Manager $95,525 $123,750 Code Enforcement Officer $79,833 $104,155 Deputy City Clerk $81,086 $105,411 Engineering Technician $76,445 $99,273 Geographic Information Systems Coordinator $99,748 $129,673 Lead Worker $70,803 $91,966 Maintenance Superintendent $134,287 $174,575 Maintenance Supervisor $87,676 $113,561 Maintenance Worker $63,192 $82,149 Open Space & Trails Coordinator $74,182 $96,435 Open Space & Trails Manager $134,287 $174,575 Open Space & Trails Supervisor $89,017 $115,722 Park Ranger $59,793 $77,730 Permit Clerk $60,254 $71,950 $110,863 $102,975 $90,190 $107,059 Revised to reflect a 3.0% increase for Part-time classifications only, effective April 7, 2026 Resolution No. 2026-___ Exhibit A Salary Schedule for Competitive, Confidential and Management positions D-3 CONFIDENTIAL POSITIONS (UNREPRESENTED GROUP)MINIMUM ANNUAL SALARY SALARY Accounting Supervisor $113,612 $147,696 Executive Assistant $80,996 $105,297 Human Resources Analyst $91,661 $119,159 SALARY SALARY Assistant to the City Manager $120,829 $157,078 Building Official $146,168 $190,019 City Clerk $146,168 $190,019 City Manager^$273,800 Deputy City Manager $195,619 $254,304 Deputy Director of Community Development $156,112 $202,945 Deputy Director of Finance $156,112 $202,945 Deputy Director of Public Works $156,112 $202,945 $178,442 $231,976 ^separate contract PART-TIME POSITIONS MINIMUM HOURLY RATE MAXIMUM HOURLY RATE * Position is considered Confidential/Unrepresented D-4 E-1 I I I RESOLUTION NO. 2026-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ACCEPTING, APPROVING, AND ADOPTING THE TENTATIVE AGREEMENT FOR A SUCCESSOR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES DISTRICT COUNCIL 36 FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2028 WHEREAS, the City Council of the City of Rancho Palos Verdes ("CITY") adopted Resolution 2023-44 on September 19, 2023, accepting, approving and adopting a Memorandum of Understanding between the CITY and the American Federation of State, County, and Municipal Employees District Council 36 ("AFSCME") for the period of July 1, 2023 through June 30, 2025 ("AFSCME MOU 2023-25"); and WHEREAS, the AFSCME MOU 2023-25 expired on June 30, 2025; and WHEREAS, the labor representatives of the CITY and AFSCME have successfully met and conferred to negotiate a Tentative Agreement on a successor AFSCME MOU for the period of July 1, 2025 through June 30, 2028 (AFSCME MOU 2025-28) pursuant to the Meyers-Millais-Brown Act (MMBA) (Government Code sections 3500-3511) and the City's Employer-Employee Relations Resolution No. 2018-23; and WHEREAS, the labor representatives of the CITY and AFSCME prepared the attached written Tentative Agreement (Exhibit A) regarding the negotiated points for the successor AFSCME MOU 2025-28, which was ratified on March 6, 2026 by the AFSCME membership and executed by the respective labor representatives; and WHEREAS, once the City Council adopts the Tentative Agreement, the parties are required to jointly prepare a written successor MOU to present to City Council for consideration and adoption consistent with the Tentative Agreement; and WHEREAS, once approved by the City Council, the Tentative Agreement and the successor AFSCME MOU 2025-28 become binding agreements between the parties, each in their own right; and WHEREAS, upon City Council adoption of the Tentative Agreement, the salary and benefit changes outlined therein shall be incorporated into the annual budget for Fiscal Year 2025-26; and WHEREAS, the City Council desires to approve the Tentative Agreement for the successor AFSCME MOU 2025-28. E-2 NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The recitals set forth above are true and correct and incorporated herein by this reference. Section 2: The City Council approves the executed Tentative Agreement for a successor AFSCME MOU 2025-28 for the period of July 1, 2025 -June 30, 2028, a fully executed copy of which is attached hereto as Exhibit A. Section 3: The City Council directs the labor representatives of the City and AFSCME to jointly prepare a written memorandum of understanding in accordance with the Tentative Agreement and present same to the City Council at a future date for consideration and approval. Section 4: The City Clerk shall certify to the adoption of this Resolution and deem it effective as of March 17, 2026 the same shall be in force and effect. PASSED, APPROVED and ADOPTED this 17th day of March, 2026. Paul~ ATTEST: ~~ eres~oka, City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2026-18 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on March 17, 2026. Resolution No 2026-18 Page 2 of 2 I I I Docusign Envelope ID: F3E73C00-A641-4BBB-BFCF-C929783AC038 CITVOF�CHO PALDS \/tROEs TENTATIVE AGREEMENT FOR A SUCCESSOR MEMORANDUM OF UNDERSTANDING Per Gov't Code Section 3505.1 Between The City of Rancho Palos Verdes and the American Federation of State, County, and Municipal Employees (AFSCME) District Council 36 The current Memorandum of Understanding between the City of Rancho Palos Verdes ("City") and the American Federation of State, County, and Municipal Employees District Council 36 ("AFSCME"), including the First Amendment and the Second Amendment, expired at midnight on June 30, 2025 ("AFSCME MOU 2022-2025"). In May 2025, the City's labor representatives and the AFSCME representatives commenced labor negotiations, including exchange of information, exchanges of proposals, meet and confer sessions, towards reaching agreement on a successor memorandum of understanding. On February 6, 2026, the parties reached a complete tentative agreement on a successor MOU, the deal points of which are set forth below and affirmed by execution of this Tentative Agreement by the parties' labor representatives subject to AFSCME member ratification and then City Council approval and adoption. 1.Successor MOU: All terms and conditions of the prior AFSCME MOU 2022-2025 shall be maintained for the duration of the successor AFSCME MOU 2025-2028 unless expressly modified or changed herein. 2.Term/Duration: Update Article I to reflect a three (3) year term from July 1, 2025 to June 30, 2028. 3.Hourly Wage Range COLA: Update Article V, Section D, to provide a Cost of Living Adjustment (COLA) of between 0% to 3%, as measured by the Consumer Price Index for All Urban Consumers (CPI-U) reported by the U.S. Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim metropolitan area covering the prior twelve month period March to March for Year 1, which will be effective on City Council approval of the MOU, and for Year 3, which begins on July 1, 2027. For Year 2, in lieu of a COLA, the City shall provide a one-hundred dollar ($100) bonus to all employees employed as of July 1, 2026. 4.Performance Evaluations: Update Article V, Section G, to provide that an employee shall receive an annual performance evaluation once the employee has completed 750 work hours (starting on the employee's anniversary date) or one year of employment, whichever occurs later. 5.Tuition Reimbursement: Update Article VI, Section G, to increase tuition reimbursement to up to one-thousand dollars ($1,000) per employee per academic year, subject to requiring coursework to be related to the employee's job and to be pre-approved prior to class enrollment to ensure it is reimbursable. This reimbursement will also require a 1- year clawback provision that will be reduced on a pro-rata basis over the 1-year period, in the event the employee leaves City employment within that 1-year period. Effective July 1 8-1E-3 Docusign Envelope ID: F3E73C00-A641-4BBB-BFCF-C929783AC038 CITVOF�CHO PALDS \/tROEs 1, 2025, employees must work a minimum of 500 hours in a fiscal year to be eligible for the program and maintain those hours per fiscal year during the 1-year period following the reimbursement. 6.Uniforms: Update Article VI, Section I, to provide that use/wearing of personal outerwear may be permitted over uniforms, but only during wet weather conditions. 7.Holiday Overtime: Update Article X, Section G, to provide that employees shall receive holiday overtime pay for working any hours the following three federal holidays: Martin Luther King, Jr. Day, Presidents Day, and Veterans Day. 8.Meal Periods: Update Article XII, Section B.1, to clarify the language to be, in its entirety, as follows: Meal periods for part-time employees are dependent upon the particular shift, work location, and whether the employee has meal period coverage. Generally, an uninterrupted, uncompensated meal period of thirty (30) minutes will be provided for every shift of six (6) or more hours. The meal period may not be combined with a rest period or used to compensate for a late arrival or early departure from work. Any waiver of the meal period must be confirmed by the employee in writing, except when there is a lack of coverage for a shift, as determined by the Department Head. In the event that an employee is required to work during a meal period, such time worked shall be compensated at the employee's hourly rate and the employee may be permitted to eat meal during the working meal period. 9.Rest Periods: Update Article XII, Section B.2, to clarify the language to be, in its entirety, as follows: Rest Period. Rest periods for part-time employees are dependent upon the particular shift, work location, and whether the employee has rest period coverage. Scheduling of breaks will be at the discretion of the Department Head or direct supervisor. Generally, an uninterrupted, compensated rest period of fifteen (15) minutes will be provided for every shift of four (4) or more hours. The rest period may not be combined with a meal period or used to compensate for a late arrival or early departure from work. Rest periods shall have no monetary value and shall be forfeited if not used during the work period. 10.Sick Leave Accrual Cap and Annual Usage: Amend Article X, Section 8(2)(3) to meet the requirements of State law, as follows: 2.In accordance with applicable state law, an eligible employee shall accrue paid sick days at the rate of one (1) hour per every thirty (30) hours worked, beginning at the commencement of employment and will accrue such paid sick leave for use beginning on the ninetieth (90th) day of employment or as permitted by law. 2 8-2E-4 Docusign Envelope ID: F3E73C00-A641-4BBB-BFCF-C929783AC038 CITVOF�CHO PALDS \/tROEs 3.In accordance with applicable state law, all paid sick leave is capped at eighty (80) hours per calendar year, including if rolled over from the prior year, and has no vested interest or cash value or as permitted by law. Update Article X, Section B to add a provision that memorializes current practice that caps the annual usage of paid sick leave, in accordance with State law: 10.In accordance with applicable state law, employees are limited to use forty (40)hours of sick leave in each year of employment. 11.Carryover Sick Leave -Update Article X, Section B to add a provision that memorializes current practice of carrying over accrued part-time sick leave hours when transitioning to a full-time position with the City: 11.If an eligible part-time employee is hired to a full-time position with the City, any remaining accrued part-time sick leave hours will be transferred to the employee's full-time sick leave bank. City of Rancho Palos Verdes [@-Ari:r'lvf_9'rvftt1ranian -City Manager Pam K. Lee -Chief Negotiator Signed by: C Lin -Deputy City Manager G=·�.1 Vina3i:faH109S :._ Director of Finance a�����,��dinez -Human Resources & Risk Manager 3 AFSCME District Council 36 r-:: Signed by: ��f� AFSCME Business Representative DC 36 Dan°a0'f'ore0y°'= Organizing Committee [�--� Que119ffr,0'f'ffe1en -Organizing Committee 8-3E-5 F-1 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 MEMORANDUM OF UNDERSTANDING City of Rancho Palos Verdes and American Federation of State, County and Municipal Employees, District Council 36 July 1, 2023 -June 30, 2025 01203.0021 /914449.1 (Version 2023 .08 .17) F-2 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 TABLE OF CONTENTS Pa2e I. TERM .................................................................................................................................. 1 II. DEFINITION OF TERMS .................................................................................................. 1 III. MANAGEMENT RIGHTS ................................................................................................. 3 IV. UNION RIGHTS ................................................................................................................. 3 A. Union Access to City Facilities ............................................................................... 3 B. Bulletin Boards ........................................................................................................ 4 C. Distribution of Literature ......................................................................................... 4 D. Union Access to New Hires and Employee Information ........................................ .4 E. Dues Deduction ........................................................................................................ 5 F. Representative Rights .............................................................................................. 5 G. Union Prohibited Conduct ....................................................................................... 6 H. Internet Use and Electronic Mail ............................................................................. 6 V. COMPENSATION .............................................................................................................. 6 A. Initial Employment .................................................................................................. 6 B. Movement Within the Salary Range ........................................................................ 7 C. Top of the Range ...................................................................................................... 7 D. Hourly Wage Range COLA ..................................................................................... 7 E. Non-Exempt Employees Overtime .......................................................................... 7 F. Acting Pay ................................................................................................................ 7 G. Performance Evaluations ......................................................................................... 8 H. Promotional Advancement. ...................................................................................... 8 VI. BENEFITS ........................................................................................................................... 9 A. Health Insurance Plans ............................................................................................. 9 B. Employee Assistance Program ................................................................................. 9 C. Life Insurance .......................................................................................................... 9 D . Accidental Death and Dismemberment ................................................................... 9 E. Short-Term Disability Insurance .............................................................................. 9 F. California Public Employees' Retirement System (CalPERS) .............................. 10 G . Tuition Reimbursement ......................................................................................... 11 H. Workers' Compensation and Unemployment Insurance ....................................... 11 I. Uniforms ................................................................................................................ 11 J. Boot Reimbursement ............................................................................................. 11 01203.0021 /914449.l 1 (Version 2023 .08 .17) F-3 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 VII. INCENTIVE PAY PROGRAM ........................................................................................ 12 VIII. EMPLOYEE EXPENSES ................................................................................................. 12 A. Mileage and Parking Expenses .............................................................................. 12 IX. AT-WILL STATUS OF EMPLOYEES ............................................................................ 12 X. LEAVES ............................................................................................................................ 13 A. Vacation Leave ...................................................................................................... 13 B. SickLeave .............................................................................................................. 13 C. Bereavement Leave ................................................................................................ 14 D. JuryDuty ................................................................................................................ 14 E. Leave of Absence without Pay ............................................................................... 15 F. Military Leave ........................................................................................................ 16 G. Holiday Overtime (Admin Instruction 2-06) ......................................................... 16 H. Family and Medical Leave ..................................................................................... 17 XI. LAYOFF ............................................................................................................................ 17 XII. WORK SCHEDULES, MEAL & REST PERIODS AND ATTENDANCE .................... 17 A. Work Schedules ..................................................................................................... 1 7 B. Meal & Rest Periods .............................................................................................. 17 C. Attendance ............................................................................................................. 18 XIII. GRIEVANCE PROCEDURES ......................................................................................... 18 A. Purpose of Grievance Procedure ............................................................................ 18 B . Informal Discussion of Grievance ......................................................................... 19 C. Formal Grievance Procedure ................................................................................. 19 XIV. DRESS CODE ................................................................................................................... 21 XV. ADMINISTRATIVE INSTRUCTIONS AND DEPARTMENTAL POLICIES .............. 21 A. Administrative Instructions .................................................................................... 21 B. Departmental Policies and Procedures ................................................................... 21 XVI. WRITTEN NOTICE .......................................................................................................... 21 XVII. OUTSIDE EMPLOYMENT (ADMIN INSTRUCTION 2-12) ........................................ 22 XVIII. SAVINGS CLAUSE AND SEVERABILITY .................................................................. 22 XIX . JOINT DRAFTING ........................................................................................................... 22 XX . MODIFICATION .............................................................................................................. 22 XXI. JOB DESCRIPTION ......................................................................................................... 22 XXII. REOPENERS ..................................................................................................................... 23 01203.0021 /914449. l 11 (Version 2023 .08 .17) F-4 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 MEMORANDUM OF UNDERSTANDING between the City of Rancho Palos Verdes and the American Federation of State, County and Municipal Employees , District Council 36 Pursuant to the requirements of the Meyers-Milias-Brown Act ("MMBA ," commencing at California Government Code § 3500 et seq.) the City of Rancho Palos Verdes ("City") has recognized the American Federation of State , County and Municipal Employees, District Council 36 ("Union") as the majority or exclusive representative, as those terms are interchangeably used under the MMBA , for those City employees in the bargaining unit ("Unit") defined as all part­ time employees , excluding temporary employees and interns, in the classifications listed on Appendix "A" to this Memorandum of Understanding ("MOU"). I. TERM This MOU will be effective from the date of City Council approval and shall cover the period commencing from that City Council approval up through and including June 30, 2025, unless otherwise expressly provided in this MOU. II. DEFINITION OF TERMS A. Whenever used in this MOU, the following terms shall have the meanings set forth below: 0120 3.002 1/914449. l 1. 2. 3. 4 . 5. 6. 7. 8. City: The City of Rancho Palos Verdes . City Manager: The duly appointed City Manager of the City of Rancho Palos Verdes or his/her designee. Classification: A position or positions assigned to the same job title. Competitive Service : The competitive service established by Section 2.46.040 of the Rancho Palos Verdes Municipal. Day: Unless otherwise indicated , day means calendar day . Demotion: A change in employment status from one classification to another having a lower rate of pay and/or change in duties which are allocated to a class having a lower maximum rate of pay . A demotion may be temporary or permanent. Dismissal: The discharge of the Employee from City service. Discharge and dismissal are used interchangeably in this MOU. Employee: For the purposes of this MOU, a part-time employee in the bargaining unit defined by this MOU and whose part-time classification, 1 (Version 2023 .08 .17) F-5 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 01203.002 1/9 14449. l 9. 10. 11. 12. 13. 14 . 15. 16. 17. 18 . 19 . excluding temporary employees and interns, is listed in Appendix A attached hereto. Evaluation Date: The date in which an Employee is scheduled to receive their performance review, if any. Exempt Employee: A Permanent Employee designated as "exempt" and whose duties and salary exempt them from the overtime pay provisions of the federal Fair Labor Standards Act (FLSA). Fiscal Year: Fiscal year is the period July 1 thru June 30. Nonexempt Employee: Any employee who is subject to the overtime pay provisions of the federal Fair Labor Standards Act. Permanent Employee : A competitive service employee as defined in Municipal Code Section 2.46.040 and compensated through the City payroll who is regularly scheduled to work forty ( 40) or more hours per week. Permanent Employee also does not include elective officials, members of appointed boards, commissions, and committees, City Council-appointed City officers, independent contractors, part-time employees, temporary employees, emergency employees, management and confidential employees or volunteers. Personnel Officer: The City Manager or their designee shall serve as the Personnel Officer as outlined in Municipal Code Section 2.46.030. Reduction In Pay: A change in the salary of an employee to a lower rate within the same salary range . Suspension: The temporary unpaid leave of absence for disciplinary purposes for a period not to exceed thirty (30) days per occurrence . Verbal Reprimand: An oral warning that may be given to a Employee in the event that a deficiency in performance or conduct is not of sufficient magnitude to warrant a more serious disciplinary action. Written Reprimand: A written statement relating to an action or omission indicating that there is cause for dissatisfaction with the Employee's services and that further disciplinary measures may be taken if the cause is not corrected. Work Week: A regular seven day period of 168 consecutive hours beginning 12:00 a.m. Sunday through 11 :59 the following Saturday , the scheduling of part-time employee work hours within which may vary from time to time based on the workforce needs of the City as determined by the Department Head and/or City Manager. 2 (Version 2023 .08 .17) F-6 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 III. MANAGEMENT RIGHTS The City, through the City Council, possesses the sole right to operate the City and all management prerogatives remain vested with the City through the City Council and City Manager. In this context, except as specifically limited by express provision of this MOU, all management prerogatives, powers, authority and functions, whether heretofore exercised, and regardless of the frequency or infrequency of their exercise, shall remain vested exclusively with the City. It is expressly recognized that these rights, include, but are not limited to, the right to hire, direct, assign or transfer an employee or probationary employee; the right to lay off employees or probationary employees; the right to determine and change staffing levels and work performance standards; the right to determine the content of the workday, including without limitation, workload factors; the right to determine the quality and quantity of services to be offered to the public, and the means and methods of offering those services, the right to contract or subcontract City functions, including any work performed by employees or probationary employees; the right to discipline employees, including the right to reprimand, suspend, reduce in pay, demote and/or terminate employees; the right to relieve employees or probationary employees of duty, demote , dismiss or terminate employees or probationary employees for non­ disciplinary purposes; the right to consolidate City functions; the right to determine City functions; the right to implement, modify and delete rules, regulations, resolutions and ordinances; the right to establish, change, combine wages or eliminate jobs, job functions and job classifications; the right to establish or change wages and compensation; the right to introduce new or improved procedures, methods, processes or to make technological changes; and the right to establish and change shifts, schedules of work, and starting and quitting times. IV. UNION RIGHTS A. Union Access to City Facilities 1. 2. 01203.0021/914449. l The parties recognize and agree that in order to maintain good employee relations, it is necessary for Union Business Representatives to have access to work locations, to confer with City employees during working hours, to post bulletins on the Union designated bulletin boards or assigned spaces on a designated bulletin board, inspect the working conditions, conduct worksite visits, investigate MOU violations, health and safety concerns, investigate and process grievances, or meet with members for the purpose of representing members in their relations with the City. Union may also have reasonable access to meeting rooms. Union Business Representatives shall be granted access upon obtaining authorization from the Department Head and/or the Human Resources Manager prior to entering a work location and after advising of the general nature of the business . The Department Head and/or the Human Resources Manager shall not unreasonably withhold timely access to work locations. However, the Department Head and/or Human Resources Manager may deny access or terminate access to work locations if, in their judgment, itis 3 (Version 2023 .08 .17) F-7 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 deemed that the visit would unduly interfere with the efficiency , safety, or security of City operations. If a request is denied, then the Human Resources Manager and/or their designee shall establish a mutually agreeable time for access to the employee. 3. Union Business Representatives granted access to work locations shall limit such visits to a reasonable period of time, taking into consideration the nature of the concern, investigation, grievance or appeal. The Department Head and/or Human Resources Manager and/or their designees may mutually establish with the Union Representative reasonable limits as to the number of visits authorized with the same employee on the same issue, and reasonable limits as to the number of employees who may participate in a visit when several employees are affected by a specific issue. The City shall not unduly interfere with Union's right to access work locations, so long as such access does not interfere with the performance of City business. 4. The Union may select two (2) Unit employees as Shop Stewards. The Shop Stewards shall be given reasonable release time on paid status to attend meetings with management representatives, or to be present at grievance and/or discipline meetings where matters within the scope of representation or grievances or discipline are being considered. The use of official time for this purpose shall be reasonable and shall not interfere with the performance of City business. B . Bulletin Boards The Union shall be provided use of bulletin boards designated by the City to post materials related to Union business and of Union interest. The bulletin boards shall be placed in conspicuous and readily accessible locations. Postings will be consistent with professional standards while maintaining the Union's first amendment right and employee's right to organize. C. Distribution of Literature The Union's representatives may distribute literature in all areas accessed by employees. Distribution of literature will be consistent with professional standards while maintaining the Union's first amendment right. Distribution will not interfere with the City's efficiency in providing service to the community . D. Union Access to New Hires and Employee Information 1. 01203.0021/914449. l The City will notify Union in writing or via email regarding all new hires at least ten (10) days prior to the employee's orientation unless there was insufficient time between employee's acceptance of offer letter and start date or there was an urgent need that was not reasonably foreseeable. Within the earlier of thirty (30) days after the date of hire or by the first pay period of the month following the hire of each newly hired employee, the City will provide the Union with the new employee's name, job title, department, 4 (Version 2023 .08 .17) F-8 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 work location, work email, and work phone numbers. No other information from the City is being requested by Union even though Union may be entitled to such additional information under law. 2. The new hire will receive a copy of the MOU with their new employee orientation packet. Union shall be permitted no less than thirty (30) minutes for each orientation session to privately talk to new bargaining unit members to explain the rights and benefits under the MOU. 3. The City will provide the Union a quarterly list of all employees in the represented bargaining unit, including the employee's name, job title, department, work location, work email, and work phone number. The parties will mutually agree on a form to use to track said employee information. E. Dues Deduction 1. At Union's request, the City shall deduct membership dues , initiation fees, and general assessments , as well as payment of any other membership benefit program sponsored by Union, from the wages and salaries of members of Union to the extent that the employee's wages are sufficient to cover the deduction. Union hereby certifies that it has and shall maintain all such deduction authorizations signed by the individual from whose salary or wages the deduction is to be made and shall not be required to provide a copy of an individual authorization to the City unless a dispute arises about the existence or terms of the authorization. Union membership dues shall be deducted each pay period in accordance with City procedures and provisions of applicable law from the salary of each employee whose name is provided by Union . 2. The City shall provide for payroll deductions on each payroll period (twenty-six times per calendar year). The City shall remit the total amount of deductions to Union within thirty (30) days of the date of the deduction. Any changes in Union dues must be given to the City a minimum of thirty (30) days prior to change to accommodate changes to payroll. 3. Union shall indemnify the City from any claims relating to the City's compliance with this Dues Deduction provision, except for any claims arising from City's own negligence . F . Representative Rights 1. 2. 01203.002 1/9 14449. l Employees shall not be able to represent themselves for the purposes of negotiating revisions to the terms of this MOU, also known as Direct Dealing or Individual Bargaining. Employees shall be allowed reasonable release time, if scheduled to work, to discuss matters regarding items contained in this MOU or conditions of 5 (Version 2023 .08 .17) F-9 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 employment with the Union 's representatives for clarification or assistance at any time upon advance notice to City and so long as City operations are not negatively impacted . G. Union Prohibited Conduct 1. The Union, its officers, agents, representatives and/or members agree that during the term of this MOU they will not cause nor condone any strike, walkout , slowdown , sick-out, or any other concerted job action by withholding or refusing to perform services. A violation of this Article by any Unit member shall constitute a cause for discipline, including termination. 2. In the event that the Union, its officers, agents, representatives and/or members cause or condone any employee strike, walkout, slowdown, sick­ out , or any other concerted job action by withholding or refusing to perform services, the Union shall immediately instruct any persons engaging in such conduct that their conduct is a violation of this MOU, and require all such represented persons to immediately cease engaging in the prohibited conduct and return to work. H. Internet Use and Electronic Mail Employees are allowed to use City computers for legal Internet and electronic mail access. No employee is allowed to download information from an unknown source. The City reserves the right to review any and all information contained on all City computers and no personal privacy is granted or guaranteed. Employees have no expectation of privacy in information contained in City computers . Any illegal use of the Internet on any City computer may result in disciplinary action, which may include termination. V. COMPENSATION Employee compensation is set forth in a salary schedule of ranges established by resolution of the City Council. Effective the first full pay period after City Council adoption of this MOU, the new hourly pay ranges for Employees set forth in Appendix A shall implemented . In addition , a signing bonus of $300.00 shall be paid by the second full pay period after City Council adoption of this MOU to those employees who were working for the City as of July 1, 2022 and who are still employed by the City at the time of City Council adoption of this MOU. A $100.00 signing bonus shall be paid by the second full pay period after City Council adoption of this MOU to those employees hired after July 1, 2022 and before July 1, 2023 and who are still employed by the City at the time of City Council adoption of this MOU. A. Initial Employment 0120 3.002 1/914449. l The rate of compensation for initial employment in any represented classification shall be determined by the City Manager at their sole discretion based upon factors 6 (Version 2023 .08 .17) F-10 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 including but not limited to the experience, education , skills and ability of the incoming Employee. B. Movement Within the Salary Range Employees will be eligible for a salary merit adjustment, provided they have demonstrated "meets expectations" or greater in every rating category of their annual performance evaluation. The specific salary merit adjustment is determined by an employee's most recent annual performance evaluation rating as further explained herein. C. Top of the Range In no case shall an Employee's regular salary exceed the maximum of the range established by resolution of the City Council. D. Hourly Wage Range COLA Effective the first full pay period in July 2024, the City shall provide a Cost of Living Adjustment (COLA) to base hourly wage ranges in Appendix A for all Union represented Employees still on payroll at that time in the amount not less than 0% nor higher than a maximum of three percent (3%) as measured by the Consumer Price Index for All Urban Consumers ("CPI-U") reported by the U.S. Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim, CA metropolitan area covering the prior twelve month period March to March. E. Non-Exempt Employees Overtime 1. Nonexempt Employees shall receive overtime compensation in accordance with the federal Fair Labor Standards Act. Accordingly, nonexempt Employees shall be paid one and one-half (1 ½) times their regular rate of pay or receive compensatory time off at one and one half (1 ½) hours for all hours worked in excess of forty ( 40) in the work week. 2. Overtime Pay: a) Overtime shall be defined as any combination of actual hours worked, which exceeds forty ( 40) hours in any work week. b) Work in excess of forty (40) hours in the workweek requires prior approval of the nonexempt Employee's Department Head or the City Manager. F . Acting Pay 0120 3.002 1/914449. l Upon written designation/approval of the Department Head and the City Manager, an Employee who performs the duties of a position with a higher classification for 7 (Version 2023 .08 .17) F-11 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 a period of one (1) calendar month or more and not to exceed the time limits as defined by CalPERS, shall receive compensation as specified below: 1. The Employee shall be compensated at a level within the higher classification as will accord such employee an increase of at least five percent ( 5%) over their current rate of compensation, provided that the salary does not exceed the maximum amount of compensation within the new salary range. 2. Upon meeting the one calendar month eligibility period, such acting pay compensation shall be retroactive to the first day of the acting assignment through the duration of the assignment. G. Performance Evaluations 1. An Employee should receive an annual performance evaluation based upon their original hire date or promotion anniversary date. 2. Employees shall be eligible for salary merit advancement within an individual salary range based upon their performance evaluation and meritorious performance as follows: • Meets Expectations (Satisfactory): 1 % -2.5% • Exceeds Expectations (Good): 2.5% -5% 3. No employee may receive a Meets Expectations or higher rating where they have an individual category rating of less than Meets Expectations. 4. Employees are entitled to file a rebuttal to any performance evaluation within thirty (30) days of receiving the evaluation. 5. Any employee receiving a less than Meets Expectation rating shall be re­ evaluated in six (6) months. 6. The City Manager shall retain the sole discretion to approve salary merit bonuses for Employees at the top of their salary range on an annual basis. H. Promotional Advancement 01203.0021/914449. l When an Employee is promoted from employment in one classification or classification job series to employment in a classification or classification job series assigned a higher salary range, advancement shall be at least five percent (5%) over their current rate of compensation, provided that the salary does not exceed the maximum amount of compensation within the new salary range. In the event this unlikely situation occurs, the parties agree to meet and confer to address. 8 (Version 2023 .08 .17) F-12 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 VI. BENEFITS A. Health Insurance Plans Employees working the required number of hours for participation as defined by the federal Affordable Care Act ("ACA"), will be eligible to participate in the City's group medical plan, which does not include dependents. The City currently pays the entire premium for eligible employees. The City does not guarantee or in any other way promise to Employees the hours necessary to qualify for this benefit. 1. The City has five (5) medical plans available to eligible employees (3 HMO's, 1 traditional PPO, and a high deductible PPO). 2. The high deductible PPO plan option comes with a Health Savings Account (HSA) that is funded by the City. The City's annual contribution to an eligible employee's HSA plan is $3 ,850 for single coverage or $7,750 for eligible employees and dependent coverage. Eligible employees can make additional contributions, on a pre-tax basis, to their HSA account through payroll deductions, up to the IRS limits, based on their age (50+) and coverage level. B. Employee Assistance Program The City shall provide an Employee Assistance Program at no cost to all employees and employee families. C. Life Insurance Employees are eligible for life insurance on the first of the month following their hire date . The City pays the entire premium on a life insurance policy with a benefit of twice the employee's annual City compensation/salary, up to a maximum benefit of $350,000. D. Accidental Death and Dismemberment Employees are eligible for AD&D insurance on the first day of the month following their date of hire. The City pays the entire premium on an AD&D insurance policy. The benefit amount is based on the actual loss, up to a maximum benefit of $350,000. E. Short-Term Disability Insurance 01203.002 1/9 14449. l All employees are required to part1c1pate in the California State Disability Insurance (SDI) program , which provides partial salary replacement benefits when an employee is disabled due to a non-work related illness or injury. The program is funded by employee payroll deductions from the employee's bi-weekly paycheck until a cap established by the State is reached. The benefits and terms are established by the State. 9 (Version 2023 .08 .17) F-13 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 F. California Public Employees' Retirement System (CalPERS) 01203.0021/914449. l Employees are eligible to be enrolled in the City's retirement system if they meet the required number of hours worked in a fiscal year as determined by the job classification. The retirement plan is provided under contract with CalPERS. The City pays the employer portion of the CalPERS contribution for eligible employees. Eligible employees pay their employee portion, as determined by statute and CalPERS contract. In the event of any conflict between this summary and either the City's contract with CalPERS or law, the contract or law, as applicable, will prevail and apply. The City does not guarantee Employees the required number of hours to meet eligibility for any of these plan tiers. 1. Tier 1 -Eligible employees hired prior to October 6, 2012 are subject to the first tier benefit formula of 2.5%@55 with final compensation determined by the average of the 12 highest paid consecutive months (single highest year). The employees will be required to contribute eight percent (8%) of their base salary toward the pension benefit. 2. Tier 2 -Eligible employees hired on or after October 6, 2012 who are not defined by CalPERS as "new members" are subject to the second tier benefit formula of 2%@60 based on the average monthly pay rate for the 36 highest paid consecutive months (3 year final compensation). The employees will be required to contribute seven percent (7%) of their base salary toward the pension benefit. 3. Tier 3 -Pursuant to the Public Employees' Pension Reform Act of 2012 (PEPRA), on and after January 1, 2013, eligible employees who are defined by CalPERS as "new members," are subject to the reform tier benefit formula of 2%@62 based the average monthly pay rate for the 36 highest paid consecutive months (3 year final compensation) and other PEPRA required terms. In addition, new members will be required to pay one half (1/2) of the total normal cost rate for their pension benefit. That rate is determined by CalPERS and will be communicated to the Association ( and as it is adjusted in the future) once it is known by the CITY . As defined by CalPERS, a "new member" is: a) b) An individual who becomes a member of any public retirement system for the first time on or after January 1, 2013, and who was not a member of any other public retirement system prior to that date. An individual who becomes a member of a public retirement system for the first time on or after January 1, 2013, and who was a member of another public retirement system prior to that date, but who was not subject to reciprocity, as provided under PEPRA . 10 (Version 2023 .08 .17) F-14 DocuSign Envelope ID : AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 c) An individual who was an active member in a retirement system and who, after a break in service of more than six months , returned to active membership in that system with a new employer. G. Tuition Reimbursement The City provides a tuition reimbursement program to encourage Employees to pursue professional growth and development through accredited academic coursework. The course must be related to work within City government, as agreed upon by the City Manager, and class time must not interfere with the employee's normal duties , unless specifically authorized by the City Manager. A passing grade, or a certificate of completion for courses that do not bear credit, is required to receive payment. The maximum amount of reimbursement in a fiscal year shall not exceed $500 per employee participating in the program and is subject to final authorization by the City Manager. The total amount of funds available for the tuition reimbursement program is established each year by the City Council as part of the City's operating budget. H. Workers' Compensation and Unemployment Insurance 1. Coverage : The City provides workers' compensation and unemployment insurance to all eligible employees in accordance with California law. 2. On-the-Job Injuries: All injuries suffered during working hours must be promptly reported to the employee's supervisor and by notifying the Department Head, and Human Resources /Risk Manager. Employees should also promptly report the injury to the 24/7 /365 on-call reporting center. Unless there is an emergency, a City referral form must be obtained from the Personnel office before visiting a doctor. Upon returning to work from all on-the-job injuries, employees must have an approved return to work certificate signed by the attending doctor. I. Uniforms Employees may be required to wear uniforms. When required to wear uniforms , the City shall provide such uniforms at no expense to the employees. Replacement uniforms may be provided as needed upon request by employee and justification as determined by Department Head and/or their designee. Uniform replacement request shall not be unreasonably denied. J. Boot Reimbursement 0120 3.002 1/914449. l Employees may be required to wear work boots and those determined to need boots are provided them on a reimbursement basis, with required receipts for same, shall receive one (1) set of work boots per year, up to a maximum of $150 per pair, as determined and approved by the City at no employee expense. Additional boots may be authorized as needed upon request by employee and with justification as determined by Department Head and/or their designee. An additional set of work 11 (Version 2023 .08 .17) F-15 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 boots are paid up to $150 maximum reimbursement per pair, per year, due to extreme wear. VII. INCENTIVE PAY PROGRAM A. From time-to-time, the City Manager may grant an incentive pay award to any Employee in recognition for extraordinary work based upon a nomination. B. The City Manager shall approve the amount of incentive pay per employee award. However, in no case shall the incentive pay exceed five percent (5%) of an employee's base salary. C. Employees shall be limited to no more than two (2) incentive bonus pay awards in a fiscal year, not to collectively exceed a total of 5% of an employee's base salary. VIII. EMPLOYEE EXPENSES A. Mileage and Parking Expenses Employees required to use their private automobile for City assignments shall be reimbursed for mileage at the current standard mileage rate set by the Internal Revenue Service and actual parking expenses for work during shift hours, but not for arriving to or departing from the City before and after their work shift. 1. All claims for mileage and parking reimbursement shall first be approved in writing by the employee's supervisor, Department Head or the City Manager, and shall be filed on forms and in accordance with the procedures established by the City Manager. 2. Employees using their private automobile for City business shall only be eligible if the employee supplies the Personnel Officer with a Certificate of Insurance stating that their private transportation is covered by public liability and property damage insurance of not less than the amount required in the procedures established by the City Manager, established in coordination with the City's liability coverage pool. IX. AT-WILL STATUS OF EMPLOYEES Employees remain at-will employees and are not afforded any rights, benefits, notice and/or appeal procedures afforded full-time employees except as expressly provided herein, but instead may be discharged by their Department Head or the appointing authority (as defined in the City's Municipal Code) at any time with or without notice or cause. In addition, Employees as part-time employees are not guaranteed any specific number of hours per day or week and work those hours determined by the City as necessary to its functions in its sole discretion. In turn, all Employees subject to this MOU are entitled to end their employment relationship with the City at any time, with or without notice or cause. No provision of this MOU shall be deemed to confer upon any Employees any 01203.0021/914449. l 12 (Version 2023 .08 .17) F-16 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 property rights in employment. All Employees serve at the pleasure of their Department Heads and the City Manager. X. LEAVES Except as otherwise permitted by law, all requests for leave shall be in writing, and shall be sent to the employee's supervisor or Department Head or their designee. The request shall include the expected start and end dates of the leave , and any medical certifications required by the provisions of this MOU or City Policy. An employee shall provide as much advance notice of the need for leave as practicable. Generally, when the need for the leave is foreseeable, the employee shall try to provide at least ten (10) days' notice prior to the commencement of the leave. Failure to provide advance notice of the need for leave may be grounds for delaying the start of the leave. A. Vacation Leave Employees are not entitled to accrue paid vacation leave. B. Sick Leave 1. 2. 3. 4. 5. 6. 01203.0021/914449. l Per state law, part-time employees who work for their employer for thirty (30) days or more within a year of commencement of employment are entitled to paid sick days under certain conditions. An eligible employee shall accrue paid sick days at the rate of one ( 1) hour per every thirty (30) hours worked, beginning at the commencement of employment and will accrue such paid sick leave for use beginning on the ninetieth (90 th) day of employment. All paid sick leave is capped at forty-eight ( 48) hours per calendar year, including if rolled over from the prior year, and has no vested interest or cash value . In order to receive paid sick leave, an employee must speak with their supervisor at the earliest possible time, generally 2 hours before start of the employee's shift that the leave will be used. Alternatively, an employee must leave a voicemail with their supervisor and then call their Department Head. Such notice shall provide the fact and the reason for the leave and duration of the leave. Failure to provide reasonable notice will be cause for denial of sick leave with pay for the period of the absence. Written verification of the cause of absence may be required by the Department Head or City Manager. Employees shall not be granted, and accordingly are not entitled to take, paid sick leave in advance of its accrual. Employees who use more than twenty-four (24) consecutive sick hours shall be required to furnish a physician's certificate stating that the employee is 13 (Version 2023 .08 .17) F-17 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 able to safely return to work. A physician's certification may be requested if a supervisor has reason to believe that sick leave is being abused. Regardless of the length of the sick leave used, the supervisor has the authority to determine if the employee is abusing the sick leave benefit. 7. Sick leave must be used in a minimum of fifteen (15) minute increments just like the reporting of regular hours worked. 8. Sick leave may be used for medical appointments, pregnancy disability leave, leaves provided pursuant to the federal and California family and medical leave statutes and to care for an employee's spouse, child(ren), parent(s) or spouse's child(ren) or parent(s) due to illness. 9. Upon termination or dismissal from employment, employees shall not be granted, and accordingly are not entitled to be paid for accumulated sick leave. C. Bereavement Leave In the event of a verified death in a Employee's family, upon request, the City shall grant up to five ( 5) workdays of bereavement leave, as provided below: 1. To be eligible for this leave, a Employee must be employed by the City for at least thirty (30) days prior to the commencement of the leave. 2. For the purpose of this Article, the term "family" shall be defined as spouse, child, parent, sibling, grandparent, grandchild, parent of a spouse, registered domestic partner, and parent of a registered domestic partner. 3. For Employees, the bereavement leave shall be unpaid, except that an employee may use accrued and available paid sick leave for some or all of the leave . 4. The days of bereavement leave need not be consecutive but the bereavement leave must be completed within three (3) months of the date of death of the employee's family member. 5. The City may require, within thirty (30) days of the first day of the leave, that the employee provide documentation of the death of the family member, such as a death certificate, a published obituary, or written verification of death, burial, or memorial services from a mortuary, funeral home, burial society, crematorium, religious institution, or governmental agency. D. Jury Duty 1. 01203.0021/914449. l Employees called for jury duty shall give the Department Head or City Manager reasonable advance written notice of their obligation to serve . 14 (Version 2023 .08 .17) F-18 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 2. Employees will be paid their regular wages, less jury duty pay ( other than mileage or subsistence allowances) or may elect to forfeit the jury duty warrant to the City and receive full City wages for any normal work shifts missed because of jury service up to three (3) weeks of pay. 3. Written evidence of jury duty attendance shall be presented to the Personnel Officer. 4. Employees shall continue to report to work on those days when excused from jury duty, and on which the employee can work at least four (4) hours during their regular workday. E. Leave of Absence without Pay 01203.0021/914449. l The City Manager, after consultation with the Employee's Department Head, may grant an employee a leave of absence without pay for a period not to exceed four ( 4) months in accordance with the work force needs of the City. Additionally, the City Manager may apply such conditions as they deem warranted in the best interest of the City. No such leave shall be granted except upon written request of the employee with explanation for the need for the leave. Leave under this section shall only be granted to an employee under circumstances where the employee is not otherwise eligible for pregnancy disability leave or family and medical leave as provided under applicable law and Sections 8 (Pregnancy Disability Leave) and 11 (Family and Medical Leave) of the Personnel Rules. Approval shall be in writing and a copy filed with the Personnel Officer. 1. 2. 3. 4. A leave of absence without pay shall not be construed as a break in service or employment, however, paid leave benefits, increases in salary, and other similar benefits shall not accrue to a person granted such leave during the period of absence. An employee shall stop accruing seniority after thirty (30) days on a leave of absence without pay. Use of a leave of absence without pay for a purpose other than that requested may be cause for forfeiture of reinstatement rights. Failure on the part of an employee or probationary employee on leave to report to work promptly at its expiration may be cause for discharge. An employee reinstated after a leave of absence without pay shall receive that same pay rate in the salary range that they received when the leave of absence began unless the pay increase is awarded by this MOU. Time spent on such leave without pay shall not count towards service for increases within the salary range, and the employee's evaluation date shall be set forward one (1) month for each thirty (30) consecutive days taken. The City shall maintain group health insurance coverage for any employee (including dependent coverage) who is already receiving such coverage while the employee is taking a medical leave of absence under this section at the level and under the conditions coverage would have been provided by 15 (Version 2023 .08 .17) F-19 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 the City if the employee had not taken such leave. In the event an employee does not return to work following the leave, the City reserves the right to recover the premiums or other sums the City paid for group health insurance coverage during the period of the leave. 5. The employee is responsible to pay the entire cost of all applicable health and life insurance premiums and other insurance premiums (such as long term disability and accidental death and dismemberment) which were previously being paid during a non-medical leave of absence without pay that exceeds thirty (30) days. In addition, in advance of taking the leave, the employee must make written arrangements with the Finance Department to pay for the costs of such coverage. Premiums shall be paid within the time specified by the City or as otherwise required by the applicable insurance or benefit program. 6. If the leave of absence without pay was for medical reasons, prior to resuming regular duties, an employee shall furnish the Personnel Officer a physician's certificate stating that the employee is able to return to work. F. Military Leave Military leave shall be granted in accordance with applicable federal and California law. G. Holiday Overtime (Admin Instruction 2-06) 01203.0021/914449. l Regardless of the number of hours worked during the work week, Employees who work on a City holiday designated below shall be paid their regular hourly rate and one and one half ( 1 ½) times their regular hourly rate of pay for all hours worked on the holiday: a) b) c) d) e) f) g) h) Memorial Day (Last Monday in May); Independence Day (July 4th); Labor Day (1 st Monday in September); Thanksgiving Day (4 th Thursday inNovember); The day after Thanksgiving (4 th Friday in November); Christmas Eve (December 24th ); Christmas Day (December 25 th); and New Year's Day (January pt). 16 (Version 2023 .08 .17) F-20 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 H. Family and Medical Leave Family and medical leave will be granted in accordance with the City's Family and Medical Leave Policy and applicable law. XI. LAYOFF A. Whenever in the judgment of the City Council it becomes necessary in the interest of economy , because the necessity for a position no longer exists or other legitimate purpose, the City Council may abolish any position in the City; and the employee holding such position or employment may be laid off without taking disciplinary action and without the right of appeal. Except as otherwise determined by the City Council, the City Manager, when it becomes necessary in the interest of economy, because the necessity for a position no longer exists or for other legitimate purpose, may abolish any position or employment in the City and may lay off an employee holding such position or employment without taking disciplinary action and without right of appeal. B . If an Employee believes that their layoff is contrary to federal or state law or City policy , they may file a grievance based solely on the narrow issue of the alleged violation federal or state law or City policy. Otherwise, Employees shall have no other rights relative to the termination of their at-will employment by means of a layoff. XII. WORK SCHEDULES, MEAL & REST PERIODS AND ATTENDANCE A. Work Schedules 1. All work shifts shall have a designated start and end time , but some events and/or rentals may require employees to stay longer than scheduled. 2. All work shifts are subject to change due to unexpected change in need such as weather impacts, canceled events, canceled rentals, pandemic issues, event of Force Majeure, etc. 3. Employees work part-time schedules during the entire workweek and across different shifts each day and with work days and work shifts sometimes changing by season. Accordingly, there are no guaranteed work hours, shifts or days . Work schedules are determined in advance by the Employee's Department Head and/or their designee. B. Meal & Rest Periods 1. 01203.0021/914449. l Meal Period. Meal Periods for Part-Time employees are dependent upon the particular shift, work location and whether the employee has Meal Period coverage. The City's goal is to allow for at least a thirty (30) minute unpaid Meal Period for every 6 hours of work where the employee can be released from all work duties. Employees may waive their right to such Meal Periods 17 (Version 2023 .08 .17) F-21 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 but must do so in writing, the waiver may be revoked with a 24 hour notice to the employee's immediate supervisor. If there isn't coverage for such a Meal Period due to the nature of the position or the lack of coverage on a particular day, then the employee will be paid for a working lunch where they are permitted to eat on duty and at the job site. Eating food at public facing counters is generally not accepted unless approved by the Department Head. Department Heads have the responsibility for scheduling lunch periods for their employees and may require employees to work through their Meal Periods with pay as required by City needs and allow employees to eat at their desks or facilities while on duty. 2. Rest Periods. The City allows every employee to take a 15-minute rest period for every 4 hours worked. Rest Periods are not to be taken outside the employee's assigned work facility without permission of the Department Head. Eating food in the public areas is generally not accepted unless approved by the Department Head. Employees in the field may suit the time of work break to the situation at hand, recognizing that they are City representatives in all daily activities. Scheduling of breaks will be at the discretion of the Department Head. This provision shall not apply to field trips and excursions and/or related off-site programming. C. Attendance Failure of an Employee, who is absent without leave , to return to work within 24 hours of notice to return, or failure to request leave of absence within the same period, shall be cause of disciplinary action, including discharge. Employees who leave during work hours without first notifying and receiving prior approval from their supervisor or Department Head of their whereabouts are subject to appropriate disciplinary action, including discharge . XIII. GRIEVANCE PROCEDURES A. Purpose of Grievance Procedure 01203.0021/914449. l The grievance procedure shall be used to resolve employee or probationary employee complaints concerning the express terms and condition of employment with the City. The grievance procedure shall not be used for resolving any complaint concerning disciplinary action . Except as otherwise provided in this MOU, the grievance procedure may be utilized to resolve alleged: 1. 2. 3. Improper application of rules , regulations and procedures. Unfair treatment, including coercion, restraint and reprisal. Improper procedures utilized in employee layoff. 18 (Version 2023 .08 .17) F-22 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 4. Discrimination because of race, religious creed, color, national ongm, ancestry, physical disability, mental disability, reproductive health decision making, medical condition, genetic information , marital status, sex , gender, gender identity , gender expression, age, sexual orientation, or veteran or military status of any person or because of any other statutorily or constitutionally impermissible basis . 5. Any manner affecting an employee's: a) Work schedule ; b) Fringe benefits; c) Holidays; d) Sick Leave; and/or e) Retirement. 6. Any alleged violation of this MOU. 7. Any other matter regarding the terms and conditions of employment. B. Informal Discussion of Grievance 1. When an Employee has a grievance, the employee shall first informally discuss the matter with the employee's immediate supervisor within ten (10) days from the date of the incident or decision generating the grievance. If, after a discussion with the immediate supervisor, the grievance has not been satisfactorily resolved, the employee shall have the right to informally discuss the grievance with the supervisor's immediate superior. The informal discussion with the supervisor 's immediate superior shall occur within twenty (20) days from the date of the incident or decision generating the grievance. If, after such a discussion, the grievance has not been satisfactorily resolved, the employee shall have the right to file a formal gnevance . 2. If an employee's grievance is with their immediate supervisor or the supervisor's immediate superior, or the supervisor's immediate superior is the Department Head, they may skip to the next step of the gnevance procedure as appropriate. C. Formal Grievance Procedure 0120 3.002 1/914449. l The formal grievance procedure shall be used to resolve an employee's grievance not satisfactorily resolved by informal discussion or where Section B2 applies above. 19 (Version 2023 .08 .17) F-23 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 1. 2. 3. 4. 5. 6. 7. 01203.002 1/9 14449. l An employee shall have the right to present a formal grievance in writing to their Department Head within thirty (30) days from the date of the incident or decision generating the grievance . All formal grievances shall state the factual reasons for the grievance, the alleged violations, and the employee's requested remedy and be signed by the employee . The formal written grievance shall be timely presented to the Department Head. When the employee presents a formal grievance to their Department Head, the Department Head shall discuss the grievance with the employee within ten (10) days of receipt. The employee's labor representative may file a grievance on the employee's behalf, but the employee must still sign it. Within ten (10) days after meeting with the employee regarding the formal grievance, the Department Head shall render a written decision. If the employee is unsatisfied with the decision of the Department Head, then they shall have the right to present the formal grievance to the City Manager within five ( 5) days from the date of the decision of the Department Head. The employee shall provide the City manager with a copy of the original grievance, the response from the Department Head, and state in writing any and all objections to, and/or dissatisfaction with, the decision of the Department Head. When the employee presents the formal grievance to the City Manager, the City Manager or their designee shall discuss the grievance with the employee. Within fifteen (15) days after receipt of the formal grievance and related materials, the City Manager and/or their designee shall render a written decision. The decision of the City Manager and/or their designee shall resolve the grievance and no further administrative review of the subject matter of the grievance shall be permitted. The employee and the City have the right to representation at any step in the grievance process. Any grievance not filed or taken to the next step by the employee within the specified time limits shall be deemed settled on the basis of the last decision , and not subject to further consideration or reconsideration. Grievances settled based on not being filed or taken to the next step, shall not set precedent for future grievances. By mutual agreement and for good cause, reasonable extensions of time may be given in writing by the applicable parties at each step in the grievance procedure. An employee who has filed a grievance shall suffer no discrimination for filing the grievance. This grievance process does not waive the employee's rights to file any claim with appropriate state and federal agencies. 20 (Version 2023 .08 .17) F-24 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 XIV. DRESS CODE A. All Employees must present a professional appearance by wearing appropriate and clean attire for the position held and tasks to be completed. Attire should be considered business. If a uniform is required, then it should be well maintained and worn in a presentable fashion. Matters of employee attire will be managed at the department level. B. Examples of appropriate office attire include slacks or khakis; dress shirt or blouse; open-collar or polo shirt; optional tie or sport coat; a dress or skirt at knee-length or below; a tailored blazer, knit shirt or sweater; loafers or dress shoes that cover all or most of the foot. Examples of inappropriate attire include t-shirts; gym or sweat clothing, including work out wear; halter tops, tank tops or crop tops; leggings or spandex (except with dresses); low back dresses, blouses , or shirts; sheer, see through or revealing clothing; shorts; and casual sandals (flip flops). Hats are not acceptable, unless they are part of a uniform. Jeans and athletic shoes for office personnel are limited to "Friday" casual, unless the position held requires jeans and/or athletic shoes. XV. ADMINISTRATIVE INSTRUCTIONS AND DEPARTMENTAL POLICIES A. Administrative Instructions: Without limiting the application of other Administrative Instructions, unless otherwise inconsistent with this MOU or the law, Employees are subject to Administrative Instructions: 2-06 (Part-Time Employees), 2-03 (Workers' Compensation Claims Procedures), 2-09 (Gifts), 2-10 (Policy Against Harassment in the Workplace), 2-12 (Outside Employment), 2-13 (Pets), 2-14 (Bulletin Boards), 2-15 (Employee Incentive Program), 2-18 (Policy Against Violence in the Workplace), Admin Instruction 2-19 (Part Time, Seasonal, and Temporary employee Sick Leave), 7-01 (Safety Program), 7-04 (Accident Reports -Vehicle), 8-01 (Use of City Vehicles), 8-02 (Use of Employees Vehicles for City Business), 8-05 (Computer Network Use), 8-07 (Electronic Mail and Internet Use), and 8-08 (Use of City mobile telephones) to the extent such instructions are not inconsistent with this MOU. Copies of the current Administrative Instructions are available in the Administrative Instruction Manual and from the Human Resources Office . B. Departmental Policies and Procedures: Where a department or work group has adopted employment and workplace policies, procedures or other instructions, employees within that group are subject to those policies, procedures and instructions. XVI. WRITTEN NOTICE Any written notice required to be given by the provisions of this MOU, unless herein otherwise specifically provided, may be given either by personal service or by mail. In the case of service by mail, the notice must be deposited in the United States mail, in a sealed envelope, with postage prepaid; addressed to the person on whom it is to be served; at the 01203.0021/914449. l 21 (Version 2023 .08 .17) F-25 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 address in any notice given by them of their last known address, and, if there be no last known address , then addressed to them at the City (if still associated with the City in some capacity). Service by mail shall be deemed complete at the time of the deposit in the mail. XVII. OUTSIDE EMPLOYMENT (ADMIN INSTRUCTION 2-12) Employees shall be allowed to engage in employment other than their job with the City, with the understanding that such outside employment does not interfere with the performance of assigned duties and does not constitute a conflict of interest. The employee must notify their Department Head and copy the City Manager in writing regarding their outside employment. XVIII. SA VIN GS CLAUSE AND SEVERABILITY Any provision of this MOU, which conflicts with any State or Federal statute, or Executive Order having the same effect as law, now existing or hereinafter enacted, or declared by a court of competent jurisdiction to be unlawful, unenforceable or not in accordance with applicable statutes shall not affect the remainder of the MOU which shall remain in full force and effect for the term of the MOU. The parties will meet as soon as practical to negotiate the effects of any invalidated provision. XIX. JOINT DRAFTING In recognition of the fact that the parties had an equal opportunity to negotiate the language of, and draft , this MOU, the parties acknowledge and agree that there is no single drafter of this MOU and, therefore, the general rule that ambiguities are to be construed against the drafter is, and shall be, inapplicable. If any language in this MOU is found or claimed to be ambiguous, each party shall have the same opportunity to present evidence as to the actual intent of the parties with respect to any such ambiguous language without any inference or presumption being drawn against any party hereto. XX. MODIFICATION This MOU may only be modified or amended by written agreement between the parties which must then be ratified by the Union and formally approved by resolution of the City's City Council. XXI. JOB DESCRIPTION Class Specifications: The classification plan shall consist of job specifications, which shall set forth a descriptive title, typical duties and responsibilities, essential functions of the position, and the training, experience, and other qualifications necessary or desirable for the effective performance of each position within a classification . 01203.002 1/9 14449. l 22 (Version 2023 .08 .17) F-26 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 XXII. REOPENERS The parties agree to reopen the contract for the purpose of the following: A. Drafting, ratifying, adopting and implementing an Employer-Employee Relations Resolution for the City; and B. Updating the City's Personnel Rules. The City's labor relations representatives and the Union's representatives have met and conferred in good faith on wages , hours and other terms and conditions of employment for the Unit members represented by the Union and have reached agreements which are set forth in this MOU. This MOU, when executed by the City's labor relations representatives and the Union's representatives , constitutes a joint recommendation therefrom , after ratification of the Union's membership , to be submitted to the City Council for its determination and approval by resolution. This MOU is of no force or effect unless or until approved and adopted by a resolution of the City Council. City of Rancho Palos Verdes i ~ ~ E6462Z69l 1944CG Ara Mihranian City Manager Julie DeZiel Human Resources Manager GDocuSigned by: (,,_-:--&,,t"..__ J· ,/4,1M,tfl--- D6865547A4EB40 A Colin Tanner Deputy City Attorney/Lead Negotiator 01203.002 1/9 14449. l 23 AFSCME District Council 36 Organizing Committee Dana C Torrey II Dana Torey Organizing Committee Quentin Thelen Organizing Committee (Version 2023 .08 .17) F-27 DocuSign Envelope ID: AFC381 EB-A 1 CF-4CCD-8B8C-E7E39EFDD887 APPENDIX A (REPRESENTED CLASSIFICATIONS & HOURLY PAY RANGES) Classifications Recreation Leader I Recreation Leader II Recreation Specialist Part-time Ranger Television Producer Television Producer On Camera Part-time Staff Assistant I Part-time Staff Assistant II Permit Clerk Code Enforcement City Hourly Pay Range $19.00 to $24.70 $21.85 to $28.41 $25.13 to $32.67 $22.45 to $29.17 $28.75 to $37.38 $33.00 to $42.91 $23.13 to $30.05 $26.29 to $34.14 $25.73 to $33.42 $35.24 to $45.77 California minimum wage effective 1/01/2023 is $15.50 per hour. 01203.0021/914449. l 24 (Version 2023 .08 .17) F-28 DocuSign Envelope ID: 64E8BC02-3246-4C26-8FBE-4A5D09414DE3 FIRST AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING Between the City of Rancho Palos Verdes and American Federation of State, County and Municipal Employees District Council 36 July 1, 2023 -June 30, 2025 F-29 DocuSign Envelope ID: 64E8BC02-3246-4C26-8FBE-4A5D09414DE3 FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING between the City of Rancho Palos Verdes and the American Federation of State, County and Municipal Employees District Council 36 for the Period of July 1, 2023 through June 30, 2025 Pursuant to the requirements of the Meyers-Milias-Brown Act ("MMBA ," commencing at California Government Code § 3500 et seq.), the City of Rancho Palos Verdes ("CITY") has recognized the American Federation of State, County and Municipal Employees District Council 36 ("AFSCME DC36") as the majority or exclusive representative, as those terms are interchangeably used under the MMBA, for those CITY employees in the bargaining unit defined as non-management, part-time employees in the classifications listed on Exhibit "A" to the Memorandum of Understanding between the CITY and AFSCME DC36 for the period July 1, 2023 through June 30, 2025 ("AFSCME DC36 MOU 2023-25"), and adopted by Resolution No. 2023-044 on September 19, 2023 . This First Amendment to the AFSCME DC36 MOU 2023-25 is entered into this 14th day of November 2023 , by and between the CITY and AFSCME DC36. This First Amendment shall only become effective upon City Council adoption and makes only those changes reflected herein below, all other terms and conditions of the AFSCME DC36 MOU 2023-25 remaining in full force and effect. AFSCME DC36 MOU 2023-25 , ARTICLE VI Benefits , Section A , subsection 2 , currently provides as follows: A . Health Insurance Plans 2. The high deductible PPO plan comes with a Health Savings Account (HSA) that is funded by the City. The City's annual contribution to an employee's HSA plan is $3,850 for single coverage or $7 ,750 for eligible employees and dependent coverage. Eligible employees can make additional contributions, on a pre-tax basis, to their HSA account through payroll deductions , up to the IRS limits, based on their ages (50+) and coverage level. ARTICLE VI Benefits, Section A, subsection 2, shall be superseded and replaced in full with the following language upon City Council approval of this First Amendment to the AFSCME DC36 MOU 2023-25: A . Health Insurance Plans 2. The high deductible PPO plan comes with a Health Savings Account (HSA) that is funded by the City. The City's annual contribution to an eligible employee's HSA plan for the 2023 calendar year is $3 ,850 for single coverage or $7,750 for employee and dependent coverage. Effective for the 2024 calendar year and going forward, the City's annual contribution to an eligible employee's HSA plan will increase to $4,150 for single coverage or to $8,300 for employee F-30 DocuSign Envelope ID: 64E8BC02-3246-4C26-8FBE-4A5D09414DE3 and dependent coverage . Eligible employees can make additional contributions, on a pre-tax basis, to their HSA account through payroll deductions, up to the IRS limits, based on their ages ( 50+) and coverage level. IT IS SO AGREED: City of Rancho Palos Verdes I/ DocuSigned by: L@.::- Ara M. Mihranian City Manager ~~•d;:~b Eileen Jacinto Acting Human Resources Manager rz:;z:~:~ J ~/1M,lft-- L e.eoe554TA4EB4M ... Colin Tanner Deputy City Attorney/Lead Negotiator 2 American Federation of State, County and Municipal Employees District Council 36 r=DocuSigned by: ~ Corey Cordova AFSCME DC36 Business Representative Dana Torey Organizing Committee ~Do'"s;go,d by: ~~'~ Quentin Thelen Organizing Committee F-31 DocuSign Envelope ID: ABD493D8-0C72-4D92-9DAB-241 CE34962D0 SECOND AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING Between the City of Rancho Palos Verdes and American Federation of State, County and Municipal Employees District Council 36 July 1, 2023 -June 30, 2025 F-32 DocuSign Envelope ID: ABD493D8-0C72-4D92-9DAB-241 CE34962D0 SECOND AMENDMENT TO MEMORANDUM OF UNDERSTANDING between the City of Rancho Palos Verdes and the American Federation of State, County and Municipal Employees District Council 36 for the Period of July 1, 2023 through June 30, 2025 Pursuant to the requirements of the Meyers-Milias-Brown Act ("MMBA," commencing at California Government Code § 3500 et seq .), the City of Rancho Palos Verdes ("CITY") has recognized the American Federation of State, County and Municipal Employees District Council 36 ("AFSCME DC36") as the majority or exclusive representative, as those terms are interchangeably used under the MMBA, for those CITY employees in the bargaining unit defined as non-management, part-time employees in the classifications listed in Exhibit "A" to the Memorandum of Understanding between the CITY and AFSCME DC36 for the period of July 1, 2023 through June 30, 2025 ("AFSCME DC36 MOU 2023-25"), and adopted Resolution No. 2023-044 on September 19, 2023. Thereafter, the parties entered into a First Amendment to the AFSCME DC36 MOU 2023-25 dated November 14, 2023 ("First Amendment"), which became effective upon City Council adoption on November 14, 2023, to address the CITY's contribution to employee health insurance plans, all other terms and conditions of the AFSCME DC36 MOU 2023-25 remained in full force and effect. Thereafter, the parties met and conferred pursuant the requirements of the MMBA regarding the findings of the Public Sector Personnel Consultants' ("PSPC") Classification and Compensation Study ("Study") previously contracted for by the CITY. The parties reached the Tentative Agreement set forth below based in part upon the recommendations from the Study and these ensuing negotiations, which Tentative Agreement has been memorialized in this Second Amendment of the AFSCME DC36 MOU 2023-25 ("Second Amendment"), with all other terms and conditions of the AFSCME DC36 MOU 2023-25 and the First Amendment thereto remaining in full force and effect. This Second Amendment becomes effective upon City Council adoption. The parties have also agreed to the following Association represented classification title changes effective upon City Council approval of this Second Amendment: Current Title Title Change Part-time Staff Assistant II Part-time Senior Staff Assistant Part-time Recreation Part-time Senior Recreation Leader Leader II Part-time Recreation Part-time Recreation Leader Leader I Part-time Recreation Part-time Open Space and Trails Specialist Specialist Part-time Recreation Part-time Open Space and Trails Crew Leader II Lead Part-time Recreation Part-time Open Space and Trails Worker Leader I Page 2 of 3 AFSCME DC36 MOU 2023-25 Second Amendment F-33 DocuSign Envelope ID: ABD493D8-0C72-4D92-9DAB-241 CE34962D0 In addition, the parties agree to the addition of the following new part-time classifications: Part-time Human Resources Specialist Part-time IT Specialist Part-time Public Safety Liaison Part-time Public Safety Manager Based upon the above title changes and the creation of new part-time positions, the parties agree that the attached Exhibit A Salary and Hourly Schedule shall update the Appendix A to the AFSCME DC36 MOU 2023-25 for purposes of setting forth the current AFSCME DC36 represented classification titles and corresponding pay ranges effective upon City Council adoption of this Second Amendment. IT IS SO AGREED: IT IS SO AGREED: City of Rancho Palos Verdes [c OocuSigned by: ~ Ara M. Mihranian City Manager Eileen Jacinto Human Resources Analyst Colin Tanner Deputy City Attorney/Lead Negotiator Page 3 of 3 AFSCME DC36 MOU 2023-25 Second Amendment American Federation of State, County and Municipal Employees District Council 36 Mat Kostrinsky AFSCME DC36 Business Representative Dana Torey Organizing Committee Quentin Thelen Organizing Committee Docusign Envelope ID: DC6A8CE4-7953-42A8-A269-35B4006B6FD7 F-34 THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING City of Rancho Palos Verdes and American Federation of State, County and Municipal Employees, District Council 36 July 1, 2023 -June 30, 2025 Resolution No. 2024-67 Exhibit 1 Page 1 of 3 Docusign Envelope ID: DC6A8CE4-7953-42A8-A269-35B4006B6FD7 F-35 THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING between the City of Rancho Palos Verdes and the American Federation of State, County and Municipal Employees, District Council 36 for the Period of July 1, 2023 through June 30, 2025 Pursuant to the requirements of the Meyers-Milias-Brown Act ("MMBA ," commencing at California Government Code § 3500 et seq.), the City of Rancho Palos Verdes ("CITY") has recognized the American Federation of State, County and Municipal Employees, District Council 36 ("AFSCME") as the majority or exclusive representative, as those terms are interchangeably used under the MMBA, for those CITY employees in the bargaining unit defined as non-management, part-time employees in the classifications listed on Appendix "A" to the Memorandum of Understanding between the CITY and AFSCME for the period July 1, 2023 through June 30 , 2025 ("AFSCME MOU 2023-25"), and adopted by Resolution No. 2023- 044 on September 19, 2023. Thereafter, the parties entered into a First Amendment to the AFSCME MOU 2023-25 ("First Amendment"), which became effective upon City Council adoption on October 17, 2023, to address the CITY' s contribution to employee health insurance plans , with all other terms and conditions of the AFSCME MOU 2023-25 remained in full force and effect. Thereafter, the parties entered into a Second Amendment to the AFSCME MOU 2023-25 ("Second Amendment"), which became effective upon City Council adoption on March 19, 2024 , to address the recommendations from the Classification and Compensation Study , with all other terms and conditions of the AFSCME MOU 2023-25 remained in full force and effect. Thereafter, by and between the CITY and AFSCME. This Third Amendment shall only become effective upon City Council adoption and makes only those changes reflected herein below, all other terms and conditions of the AFSCME MOU 2023-25 remaining in full force and effect. AFSCME MOU 2023-25, ARTICLE VI Benefits, Section A, subsection 2, currently provides as follows: A. Health Insurance Plans 1. The City has five (5) medical plans available to eligible employees (3 HMO's, 1 traditional PPO , and a high deductible PPO). 2. The high deductible PPO plan comes with a Health Savings Account (HSA) that is funded by the City. The City's annual contribution to an eligible employee's HSA plan for the 2023 calendar year is $3,850 for single coverage or $7,750 for employee and dependent coverage. Effective for the 2024 calendar year and going forward , the City's annual contribution to an eligible employee's HAS plan wi11 increase to $4,150 for single coverage or to $8,300 for employee and dependent coverage . Eligible employees can make additional contributions , on a pre-tax basis, to their HSA account through payroll deductions , up to the IRS limits, based on their ages (50+) and coverage level. Resolution No. 2024-67 Exhibit 1 Page 2 of 3 Docusign Envelope ID: DC6A8CE4-7953-42A8-A269-35B4006B6FD7 F-36 ARTICLE VI Benefits, Section A, subsection 2, shall be superseded and replaced in full with the following language upon City Council approval of this Third Amendment to the RPVEA MOU 2023-25: A. Health Insurance Plans 1. The City has five (5) medical plans available to eligible employees (3 HMO's, 1 traditional PPO , and a high deductible PPO). 2. The high deductible PPO plan comes with a Health Savings Account (HSA) that is funded by the City. The City's annual contribution to an eligible employee's HSA plan for the 2024 calendar year is $4,150 for single coverage or $8 ,300 for employee and dependent coverage. Effective for the 2025 calendar year and going forward , the City's annual contribution to an eligible employee's HAS plan will increase to $4,300 for single coverage or to $8,550 for employee and dependent coverage . Eligible employees can make additional contributions, on a pre-tax basis, to their HSA account through payroll deductions, up to the IRS limits, based on their ages (50+) and coverage level. IT IS SO AGREED: City of Rancho Palos Verdes [@-_____________ _ E~WMf4Mihranian -City Manager ~~~ ~ntihm11:e6Jun -Deputy City Manager GSignedby: \Li1JA1 ✓$$1A, btJ)i1A117 ¥~re~odinez -Human Resources and Risk Manager American Federation of State, County and Municipal Employees, District Council 36 (" AFSCME ") ~]~ -AFSCME DC36 Business Representative ~;a~r~arrizing Committee '~~tfuuM, ~m,ntiw2.F:iii.:@len -Organizing Committee Resolution No. 2024-67 Exhibit 1 Page 3 of 3 G-1 RESOLUTION NO. 2018-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ADOPTING A COMPREHENSIVE POLICY PERTAINING TO COMMUNICATIONS AND RELATIONS BETWEEN THE CITY OF RANCHO PALOS VERDES AND ITS EMPLOYEES WHEREAS, Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Section 3500 et seq.) was enacted for the purpose of promoting full communication and improved employer-employee relations between public employers and their employees by establishing uniform and orderly methods of communication between employees and the public agencies by which they are employed; and, WHEREAS, Government Code Section 3507 empowers a city to adopt reasonable rules and regulations for the administration of employer-employee relations after consultation in good faith with representatives of its employee organizations regarding such proposed rules and regulations; and, WHEREAS, there is a need to clarify and establish policies and procedures to determine Appropriate Employee Units, to recognize Employee Organizations as representatives of the employees in an employee unit, and to provide for changes thereof; and, WHEREAS, from time to time, the City or an Employee Organization may desire to add classes or to delete classes from a recognized unit; and, WHEREAS, the City has recognized the Rancho Palos Verdes Employees Association (RPVEA) as the authorized representative for the Competitive Unit which is comprised of non-management, full-time employees; and, WHEREAS, the City may be requested to recognize other Employee Organizations to represent employees in the aforementioned employee unit in their employer-employee relations with the City; and, WHEREAS, the Municipal Employee Relations Representative of the City of Rancho Palos Verdes ("City"), as defined herein below, has met and conferred in good faith with the employee representatives of the City's Recognized Employee Organization, as hereinafter defined, regarding the preparation of reasonable rules and regulations for the administration of employer-employee relations in the form of a new and complete Employer-Employee Relations Resolution; and, WHEREAS, the City Council believes that it is in the best interests of the City and its employees to adopt a comprehensive and complete Employer-Employee Relations Resolution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES ORDAIN AS FOLLOWS: G-2 1. Pursuant to Government Code Section 3500, et seq., the City Council hereby adopts a policy, as set forth in Exhibit "A" attached hereto and incorporated by reference, which will provide orderly procedures for the administration of employer­ employee relations between the City and its employee organizations. 2. This resolution shall take effect immediately upon adoption. PASSED, APPROVED, AND ADOPTED this 17th day of April 2018. ATTEST:(: \ State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2018-23, was duly and re~ ly passed and adopted by the said City Council at a regular meeting thereof held on ~pr 17, 2018. Resolution No. 2018-23 Page 2 of 2 G-3 ARTICLE I. GENERAL PROVISIONS Section 1. Title of the Resolution This Resolution shall be known as the Employer-Employee Relations Resolution of the City of Rancho Palos Verdes. Section 2. Statement of Purpose 2.1 This Resolution is adopted as authorized under Chapter 10, Division 4, Title 1 of the California Government Code (Sections 3500 et seq.), entitled the Meyers­ Milias-Brown Act ("MMBA"), to provide reasonable, uniform and orderly procedures for the administration of employer-employee relations between the City and its employees, procedures for the recognition and/or decertification of employee organizations, procedures for determining appropriate units of representation and/or modifying such units, and a reasonable, uniform and orderly method for the resolution of questions regarding wages, hours, and other terms and conditions of employment of City employees. This Resolution rescinds and supersedes all previous resolutions pertaining to employer/employee relations, with the exception of any duly adopted Personnel Rules, Memorandum of Understanding, Tentative Agreements, and Side Letter Agreements. Section 3. Definitions Except as otherwise specifically provided below, the terms used in this Resolution shall be defined in the same way as such terms are defined in the MMBA. In addition, the following definitions are adopted for terms used in this Resolution. 3.1 "Appropriate unit" or "Employee unit of representation" means a unit of employee classes or positions, established pursuant to Article II hereof. 3.2 "City" shall mean the City of Rancho Palos Verdes, a general law city and municipal corporation, and where appropriate herein, "City" also refers to the City Council, the governing body of said City, or any duly authorized representative of the City of Rancho Palos Verdes. 3.3 "Confer in good faith": See "Meet and Confer in Good Faith." 3.4 "Confidential Employee" means any employee who is required to develop or present management positions with respect to meeting and conferring or whose duties normally require access to confidential information which contributes significantly to the development of those management positions. 3.5 "Consult in Good Faith" or "meet and consult in good faith" means to communicate in writing or, if requested by the employee organization within the time limits set by the Municipal Employee Relations Representative (also referred to as "MERR"), orally, for the purpose of presenting and obtaining views and advising of intended actions in a good faith effort to reach a consensus; and, as distinguished from meeting and conferring in good faith regarding matters within the required scope of the meet and confer -1-Resolution No. 2018-23 Exhibit A Page 1 of22 G-4 process, does not involve an exchange of proposals and counterproposals in an endeavor to reach agreement in the form of a memorandum of understanding, nor is it subject to Article IV hereof. 3.6 "Days" means calendar days unless otherwise stated. 3.7 "Employee" means any person employed by the City in a position approved in the City's allocated positions and compensation plan, as approved by the City Council, except in a position designated in that plan as temporary or part-time. 3.8 "Employee Organization" or "Recognized Employee Organization" means any employee organization formally acknowledged by the City as an employee organization that represents the City's employees. 3.9 "Employee Representative" means the authorized representative of a Recognized Employee Organization or an Exclusively Recognized Employee Organization. 3.10 "Employee unit of representation" or "appropriate unit" means a unit of employee classes or positions, established pursuant to Article II hereof. 3.11 "Employer-employee relations" means the relationship between the City and its employees and their employee organization(s), or when used in a general sense, the relationship between City management and individual employees or employee organization(s). 3.12 "Exclusive Recognized Employee Organization" means a sole employee organization certified as the representative of all employees in a unit or units, whether or not those employees are its members, and having the exclusive right and duty to meet and confer in good faith on behalf of said employees concerning statutorily required subjects pertaining to unit employees and thereby assuming the corresponding obligation of fairly representing said employees. An Exclusively Recognized Employee Organization may not be challenged by another employee organization within twelve (12) months of initial recognition. 3.13 "Fiscal Analysis" means the City's Department of Finance shall prepare a fiscal impact analysis. of any tentative agreement, a proposed memorandum of understanding, or a proposed amendment to a memorandum of understanding unless the City Council directs that a fiscal impact analysis shall not be obtained. If the City Council so directs, the fiscal impact analysis may be reviewed by an independent certified accountant who is not a public employee. 3.14 "Filing Period" means the period between November 1st and December 31st of every year following the adoption of this Resolution during which Employee Organizations may submit petitions to be recognized, decertified, or modified, or the period within which an Employee Organization or the City may propose to modify any existing unit of representation. -2-Resolution No. 2018-23 Exhibit A Page 2 of22 G-5 3.15 "Impasse" means that the representatives of the City and a Recognized Employee Organization or Exclusively Recognized Employee Organization have reached a deadlock or point in their meeting and conferring in good faith at which differences in positions on matters to be included in a memorandum of understanding or on more general mandatory bargaining matters within the scope of representation, and concerning that which they are required to meet and confer, are so substantial or prolonged that future meetings would be futile. 3.16 "Lead Negotiator" means the person in charge of the City's negotiating team when a tentative agreement, a proposed memorandum of understanding, or a proposed amendment to a memorandum of understanding is to be presented to the City Council. The City's Lead Negotiator may not be a City employee in negotiations for a tentative agreement for a memorandum of understanding or in negotiations of a memorandum of understanding. In matters where a tentative agreement, a proposed memorandum of understanding, or a proposed amendment to a memorandum of understanding is to be presented to the City Council, in addition to the Lead Negotiator, the City Manager may select members of the City's negotiation team and present them to the City Council for consent. 3.17 "Management Employee" means any employee in a position having significant responsibilities for formulating, administering or managing the implementation of City policies and programs through independent judgment, including, but not limited to, the exercise of discretionary authority to develop and modify institutional goals and priorities, including but not limited to the City Manager, Deputy City Manager, all Department Heads, Deputy Director of Community Development, Deputy Director of Finance, Deputy Director of Public Works, Deputy Director of Recreation & Parks, Building Official, City Clerk, Human Resources Manager, Information Technology Manager, and Principal Civil Engineer. 3.18 "Mediation or Conciliation" means the efforts of an impartial third person or persons functioning as an intermediary to assist the parties in reaching a voluntary resolution to impasse, through interpretation, suggestion and advice. Mediation and conciliation are interchangeable terms. 3.19 "Meet and Confer in Good Faith" or "Confer in Good Faith" means performance by duly authorized City and Recognized Employee Organization representatives of their mutual obligations. The City and a representative of a Recognized Employee Organization or Exclusively Recognized Employee Organization shall have the mutual obligation personally to meet within the time periods established by Section 6 of this Resolution upon request, exchange information on matters within the scope of representation, including wages, hours and other terms and conditions of employment, in a good faith effort to 1) reach agreement on those matters within the authority of such representatives, 2) freely exchange information, opinions and proposals, and 3) reach agreement in the form of a memorandum of understanding, on what will be recommended to the City Council on those matters within the decision making authority of the City Council. This does not require either party to agree to a proposal or to make a concession. -3-Resolution No. 2018-23 Exhibit A Page 3 of22 G-6 3.20 "Memorandum of Understanding" means a written document jointly prepared by the City's Municipal Employee Relations Representative, or designee(s), and a Recognized Employee Organization or Exclusively Recognized Employee Organization enumerating any agreement reached as the result of meeting and conferring on matters within the scope of representation, and the same signed by the parties involved and ratified by the relevant bargaining unit and approved by the City Council. 3.21 "Municipal Employee Relations Representative" or "MERR" means the City's principal representative in all matters of employer-employee relations with authority to meet and confer on matters within the scope of representation. The City Council hereby designates the City Manager as the MERR who is hereby authorized to delegate such duties and responsibilities. Where a tentative agreement, a proposed memorandum of understanding, or a proposed amendment to a memorandum of understanding is to be presented to the City Council; in addition to the City's Lead Negotiator as defined above, the City Manager may select the members of the negotiations team and present them to the City Council for consent. 3.22 "Professional Employee" means any employee engaged in work requiring specialized knowledge and skills attained through completion of a recognized course of instruction. 3.23 "Proof of Employee Support" means (1) an authorization card recently signed and personally dated by an employee, provided that the card has not been subsequently revoked in writing by the employee (2) a verified authorization petition or petitions recently signed and personally dated by an employee, or (3) employee dues deduction authorization, using the payroll register for the period immediately prior to the date a petition is filed hereunder, except that dues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as Proof of Employee Support for any employee organization. The only authorization which shall be considered as Proof of Employee Support hereunder shall be the authorization most recently signed by an employee within ninety (90) days prior to the filing of a petition. 3.24 "Recognized Employee Organization" means an Employee Organization that has been acknowledged by the Municipal Employee Relations Representative as an Employee Organization that represents employees of the City. The rights accompanying recognition include the right to consultation in good faith by all Recognized Employee Organizations. 3.25 "Scope of Representation" means all matters relating to employment conditions and employer-employee relations, including, but not limited to, wages, hours, and other terms and conditions of employment, except, however, that the scope of representation shall not include consideration of the merits, necessity, or organization of any service or activity provided by law or executive order, as set forth in Section 5. 3.26 "Supervisory Employee" means any employee who has authority, in the interest of the City, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, -4-Resolution No. 2018-23 Exhibit A Page4 of 22 G-7 reward, or discipline employees, or the responsibility to assign work and direct them, adjust their grievances, or effectively to recommend such action if, in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment. Section 4. Employee Rights 4.1 Subject to the requirements of the law and Section 5 below, employees shall have the following rights: 4.1.1 To form, Jom, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters within the scope of representation, in accordance with this Resolution. 4.1.2 To refuse to join or participate in the activities of employee organizations and to represent themselves individually in their employment relations with the City. 4.1.3 To be free from the interference, intimidation, restraint, coercion, or discrimination by the City, any employee organization, or any other employee because of the exercise of these rights. 4.2 Professional Employees shall not be denied the right to be represented separately from non-professional employees by an employee organization consisting of such Professional Employees. 4.3 Management and/or Confidential Employees shall not represent any employee organization which represents other non-Management or non-Confidential employees of the City, on matters within the scope of representation, unless as permitted by the City of Rancho Palos Verdes Personnel Rules, and Management and/or Confidential Employees may not engage in any activity with or on behalf of any employee organization which would result in an actual or apparent conflict of interest between their official duties and responsibilities of employment and their personal interests in labor relations, as determined by the MERR. Section 5. City Responsibilities and Rights 5.1 To ensure that the City is able to carry out its functions and responsibilities imposed by law, the City has and will retain the exclusive right to manage and direct the performance of City operations and the work force performing such operations. Among the rights which are reserved to the City are the following: 5.1.1 To determine the merits, necessity, organization, expansion, or diminishment of any operation, service, or activity conducted by the City; 5.1.2 To determine and change the facilities, methods, means, and personnel by which City operations are to be conducted; -5-Resolution No. 2018-23 Exhibit A Page 5 of22 G-8 5.1.3 To determine and change the number of locations, relocations, and types of City operations and the processes and materials to be employed in carrying out said operations, including but not limited to, the right to subcontract any work or operation; 5.1.4 To determine the size, assignments, and composition of the employee work force, to determine employee job classifications and contents thereof, and to assign work to employees in accordance with requirements as determined by the City; 5.1.5 To relieve employees from duty because of lack of work, lack of financial resources, or other non-disciplinary reasons; 5.1.6 To hire, transfer, promote, and discipline employees in accordance with the City's Personnel Rules; 5.1.7 To determine policies, procedures and standards for the selection, training and promotion of employees; 5.1.8 To establish employee performance standards including, but not limited to, quality and quantity standards; 5.1.9 To maintain the efficiency of governmental operations; 5.1.10 To take any and all necessary actions to carry out the City's operations in emergencies; 5.1.11 To exercise complete control and discretion over the City's organization and the technology of performing its work and services; and 5.1.12 To establish reasonable work and safety rules and regulations to maintain the efficiency and economy desirable in the performance of City operations. 5.2 The City, in exercising these rights and operations, will not discriminate against any employee because of membership or non-membership in any employee organization. Section 6. Meeting and Conferring 6.1 The City, through its representative(s), shall meet and confer in good faith with Employee Representative(s) of any Recognized Employee Organization or Exclusively Recognized Employee Organization regarding matters within the scope of representation for its members or for all employees, whichever applies, in the unit for which such organization is recognized. 6.2 Where a Recognized Employee Organization or Exclusively Recognized Employee Organization desires to meet and confer with the City, through its Employee -6-Resolution No. 2018-23 Exhibit A Page 6 of22 G-9 Representative(s), on matters within the scope of representation, said organization shall make a request in writing and specify the subjects to be discussed. 6.3 The Recognized Employee Organization or Exclusively Recognized Employee Organization shall endeavor to submit any and all request(s) to meet and confer on matters within the scope of representation that have a fiscal impact and are not currently accounted for in the current budget in the manner specified below: 6.3.1 By March15th , if it intends to have the requested item(s) considered for the budget for the next fiscal year, or, if there is a Memorandum of Understanding in existence between the parties, for the fiscal year following the expiration date of the Memorandum of Understanding (MOU), where March 15th immediately precedes the commencement of said fiscal year. 6.3.2 If a Recognized Employee Organization or Exclusively Recognized Employee Organization fails to submit, or to request a reasonable extension of time to submit, written requests by March 15th , the City shall send written notice requesting said employee organization to submit its written requests. 6.3.3 Promptly after such written requests have been made, a meeting shall be arranged at a time and place mutually satisfactory to the parties involved. 6.3.4 It is the goal of the City that the meet and confer process discussed in this Section 6.2 be completed by May 31st immediately preceding the commencement of the fiscal year in which the changes and/or requests are to become effective. 6.4 Where the City proposes to take action on matters regarding wages, hours, and other terms and conditions of employment within the scope of representation, whether such action be by ordinance, resolution, rule, or regulations, reasonable written notice shall be given to each Recognized Employee Organization and each Exclusively Recognized Employee Organization affected thereby, and each shall be given the opportunity to meet and confer with the City, through its representative(s). In cases of emergency when the City Council determines that an ordinance, resolution, rule or regulation must be adopted immediately without prior notice or meeting with any Recognized Employee Organization or Exclusively Recognized Employee Organization, the City shall provide such notice and opportunity to meet at the earliest practicable time following the adoption of same. 6.4.1 In the event the City gives notice of an anticipated action pursuant to this Section, the City may specify in said notice a reasonable period of time within which the parties should endeavor to complete the meet and confer process. 6.5 If a tentative agreement is reached by the authorized representatives of the City and Employee Organization and ratified by the Employee Organization, the City Council shall vote to accept or reject the tentative agreement within thirty (30) days of the date it is first considered at a duly noticed public meeting but only after the tentative agreement has been placed on the agenda at a minimum of two City Council meetings -7-Resolution No. 2018-23 Exhibit A Page 7 of22 G-10 that are at least two weeks apart. If implementation of this requirement would result in the Council failing to act on a tentative agreement within thirty (30) days, the City Council may waive this requirement or call the second meeting as a special meeting within the thirty (30) day period. A tentative agreement shall not be placed on the City Council's consent calendar. If the City Council accepts the tentative agreement, the parties shall jointly prepare a written Memorandum of Understanding, signed by the City's representatives and the duly authorized Employee Representatives, which shall be brought back for approval by the City Council. Said Memorandum of Understanding shall not be binding until approved by the City Council. 6.6 If an agreement is reached by the representatives of the City and the employee representatives, all agreed matters shall be incorporated as joint recommendations to the City Council in a written Memorandum of Understanding signed by the City's representatives, and the duly authorized employee representatives. Said Memorandum of Understanding shall not be binding until approved by the City Council. 6. 7 Publication of Accepted Meet and Confer Proposals. If a meet and confer proposal relating to a tentative agreement, memorandum of understanding, or an amendment to a memorandum of understanding is accepted by the party to which it is presented, the proposal and the fiscal impact analysis shall be posted on the City's website. Section 7. Consult or Consultation in Good Faith The City, through its representatives, shall consult in good faith with representatives of recognized and exclusively recognized employee organizations prior to the modification of any rules and regulations for the administration of employer­ employee relations, including any amendments to this Resolution. ARTICLE II. REPRESENTATION PROCEEDINGS Section 8. Employee Unit of Representation 8.1 The City has investigated and considered the services performed by its employees, their working conditions, and job duties, and the City's need to maintain an efficient operation while providing sound employer-employee relations and the units of representation historically recognized by the City. The City recognized the Rancho Palos Verdes Employees Association ("Association") on October 18, 2011 as the exclusive employee organization for the designated non-management employees of the City for purposes of employer-employee relations under the MMBA and regulations of the Public Employment Relations Board ("PERB")(Cal Code Reg. Section 31001-32997). 8.2 Additional, different or modified employee units of representation may be created by action of the City Council as it deems appropriate, upon the City's own written notice given to the appropriate employee organization or upon a petition filed by an employee organization pursuant to Section 9 of this Resolution. In making its determination, the City Council will investigate and consider the following factors: -8-Resolution No. 2018-23 Exhibit A Page 8 of22 G-11 8.2.1 Whether and which employees share a similar community of interests, kinds of work performed, types of qualifications required, and general working conditions; 8.2.2 The City's needs to maintain an efficient operation; 8.2.3 The units of representation historically recognized by the City, except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized; 8.2.4 Consistency with the organizational patterns of the City; 8.2.5 Effect of differing legally mandated impasse resolution procedures; 8.2.6 Number of employees and classifications, and the effect on the administration of employer-employee relations created by the fragmentation of classifications and proliferation of units; and 8.2.7 Other matters considered relevant by the City to promoting sound employer-employee relations and efficient operation of the City. Section 9. Requirements For and Process of Becoming an Exclusively Recognized Employee Organization 9.1 Only one employee organization shall be recognized as an employee organization representing employees in a unit and, after the effective date of this Resolution, only exclusive recognition on behalf of a unit established in accordance with this Resolution or amendment hereto shall be conferred. 9.2 An employee organization which was a Recognized Employee Organization immediately prior to the effective date of this Resolution shall continue to be so recognized under this Resolution in the unit for which it had been recognized, subject to this Article II, Section 9, and Sections 14 through 16 herein. 9.3 Process of Becoming Recognized. An employee organization seeking to become certified as the Exclusively Recognized Employee Organization representing employees in an appropriate unit shall file a petition ("Recognition Petition") with the MERR during the Filing Period. The Recognition Petition shall contain all of the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct, and complete: 9.3.1 Name and address of the employee organization; 9.3.2 Names and titles of its officers; 9.3.3 Names of employee organization representatives who are authorized to speak on behalf of the organization; -9-Resolution No. 2018-23 Exhibit A Page 9 of 22 G-12 9.3.4 Names and addresses of no more than two (2) employee representatives to whom notices, if sent pursuant to this Resolution, will be deemed sufficient notice to the employee organization for any purpose; 9.3.5 A copy of the employee organization's current Constitution and Bylaws, which shall contain a statement that the employee organization has, as one of its primary purposes, the representation of employees in their employment relations with the City; 9.3.6 A statement whether the employee organization is a subordinate body of, or affiliated directly or indirectly in any manner with, any regional or state or international organization and, if so, the name and address of each such regional, state, national, or international organization; 9.3. 7 A statement that the employee organization has no restriction on membership based on race, religious creed, color, national origin, ancestry, age, mental or physical disability, medical condition, marital status, sex or sexual orientation; 9.3.8 The job classifications or position titles of employees in the unit claimed to be appropriate and the approximate number of member employees therein; 9.3.9 A statement that the employee organization has in its possession Proof of Employee Support to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the City. Such written proof shall be submitted for confirmation to the MERR or to a representative of the California State Mediation and Conciliation Service; and a request that the MERR formally acknowledge the employee organization as the Exclusively Recognized Employee Organization representing the employees in the unit claimed to be appropriate for the purpose of meeting and conferring in good faith. Section 10. City Response to Recognition Petition for an Exclusively Recognized Employee Organization 10.1 Upon receipt of the Recognition Petition, the MERR shall determine whether: 10.1.1 There has been compliance with the requirements of the Recognition Petition, in accordance with Section 9, and 10.1.2 The proposed representation unit is an appropriate unit, in accordance with Section 8. 10.2 If an affirmative determination is made by the MERR on the foregoing matters listed in Section 10.1, the MERR shall inform the petitioning employee organization, give written notice of the Recognition Petition to all the employees in the -10-Resolution No. 2018-23 Exhibit A Page 10 of 22 G-13 unit and any other employee organization(s) representing any employee in the same unit, and take no action on said request for thirty (30) days thereafter. 10.3 If either of the foregoing matters listed in Section 10.1 are not affirmatively determined, the MERR shall deny the Recognition Petition and inform the petitioning employee organization of the reasons therefor in writing. The petitioning employee organization shall have seven (7) days to cure any defects in the Recognition Petition. All defaults must be cured, and a valid Recognition Petition must be submitted by the end of the Filing Period, unless the submission deadline is extended by the MERR, who shall not extend the cure period more than fifteen (15) days beyond the end of the Filing Period. Neither the MERR nor the City is obligated to assist the petitioning employee organization in curing the alleged defects to the Recognition Petition. 10.4 The petitioning employee organization may appeal such determination in accordance with Section 18. Section 11. Open Period for Filing Challenging Petition to an Exclusively Recognized Employee Organization Within thirty (30) days of the date written notice was given to affected employees that a valid Recognition Petition for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the Exclusively Recognized Employee Organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some, but not all the classifications or positions set forth in the Recognition Petition being challenged), by filing a petition evidencing Proof of Employee Support in the unit claimed to be appropriate of at least thirty (30) percent and otherwise in the same form and manner as set forth in Section 9.3. If such challenging petition seeks establishment of an overlapping unit, the MERR shall call for a meeting on such overlapping Recognition Petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. Thereafter, the MERR shall determine the appropriate unit or units in accordance with the standards in Section 8.2. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination is communicated to them by the MERR to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 18. Section 12. Granting Recognition to an Exclusively Recognized Employee Organization Without an Election If the Proof of Employee Support shows that a majority of the employees in the appropriate unit have designated the petitioning employee organization to represent them, and if no other employee organization files a challenging petition, the petitioning employee organization and the MERR shall request the California State Mediation and Conciliation Service, or another agreed upon neutral third party, to review the count, form, accuracy, and propriety of the Proof of Employee Support. If the neutral third party makes an affirmative determination, the MERR shall certify the petitioning employee organization as the Exclusively Recognized Employee Organization for the appropriate unit. -11-Resolution No. 2018-23 Exhibit A Page 11 of22 G-14 Section 13. Granting Recognition to an Exclusively Recognized Employee Organization Through an Election Process 13.1 Upon the submission of valid Recognition Petitions of more than one employee organization for employees in the same or overlapping units, the MERR shall arrange for a secret ballot election to be conducted by the City Clerk or such other third party agreed to by the MERR and the concerned employee organization(s), in accordance with such party's rules and procedures, subject to the provisions of this Resolution. All employee organizations who have duly submitted Recognition Petitions which have been determined to be in conformance with this Resolution shall be included on the ballot. The ballot shall also reserve to employees the choice of representing themselves individually in their employment relations with the City. Employees entitled to vote in such election shall be those persons employed in regular, permanent positions within the designated appropriate unit who were employed during the pay period immediately prior to the date which ended at least fifteen (15) days before the date the election commences, including those who did not work during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the City in the same unit on the date of the election. An employee organization shall be formally acknowledged as the Exclusively Recognized Employee Organization for the designated appropriate unit following an election or run-off election, if it received a numerical majority of all valid votes cast in the election. In an election involving three or more choices, where none of the choices receives a majority of the valid votes cast, a run-off election shall be conducted between the two choices receiving the largest number of valid votes cast. The rules governing an initial election are applicable to a run-off election. 13.2 There shall be no more than one valid election under this Resolution pursuant to any Recognition Petition in a twelve (12) month period affecting the same unit. 13.3 In the event that the parties are unable to agree on a third party to conduct the election, the election shall be conducted by the California State Mediation and Conciliation Service. If a third party conducts the election, costs of conducting elections shall be borne in equal shares by the City and by each employee organization appearing on the ballot. 13.4 A Recognized Employee Organization or Exclusively Recognized Employee Organization of the unit for which a decertification election is being conducted shall also appear on the ballot, unless within fourteen (14) days of receipt of the notice of the Decertification or Recognition Petition, or notice of the unit determined by the City Council, whichever is later, said employee organization provides written notice to the MERR that it does not intend to participate in the election. Notice of the intention not to participate in the election shall constitute withdrawal from representation of the unit effective the date the notice of intention not to participate in the election is received by the MERR. -12-Resolution No. 2018-23 Exhibit A Page 12 of22 G-15 13.5 The MERR shall announce the date of the election and the voting location or locations at least twenty-eight (28) days before the date of such election. Employees shall vote in person. Section 14. Procedure for Decertification of Exclusively Recognized Employee Organization 14.1 A decertification petition alleging that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit ("Decertification Petition") may be filed with the MERR only during the Filing Period or the thirty (30) day period commencing one hundred twenty (120) days prior to the termination date of a Memorandum of Understanding then having been in effect for three (3) years or less, provided that a Decertification Petition may not be filed within twelve (12) months of initial recognition of an Exclusively Recognized Employee Organization. A Decertification Petition may be filed by two or more employees or their representative, or an employee organization, and shall contain the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct, and complete: 14.1.1 The name, address and telephone number of the petitioner and a designated representative authorized to receive notices or requests for further information. 14.1.2 The name of the established appropriate unit and the incumbent Exclusively Recognized Employee Organization sought to be decertified as a representative of that unit. 14.1.3 An allegation that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto. 14.1.4 Proof of Employee Support that at least thirty (30) percent of the employees in the established appropriate unit no longer desire to be represented by the incumbent Exclusively Recognized Employee Organization. Such proof shall be submitted for confirmation to the MERR or to a mutually agreed upon disinterested third party within the time limits specified in the first paragraph of this Section. An employee organization may, in satisfaction of the Decertification Petition requirements hereunder, file a petition under this Section in the form of a Recognition Petition that evidences Proof of Employee Support of at least thirty (30) percent, that includes the allegation and information required under paragraph 14.1.3 of this Section, and otherwise conforms to the requirements of Section 9. 14.2 The MERR shall initially determine whether the Decertification Petition has been filed in compliance with the applicable provisions of this Resolution. 14.2.1 If the foregoing matters listed in Section 14.1 are not affirmatively determined, the MERR shall deny the Decertification Petition and inform the -13-Resolution No. 2018-23 Exhibit A Page 13 of22 G-16 petitioning employee organization of the reasons therefor in writing. The petitioning employee organization shall have seven (7) days to cure any defects in the Decertification Petition. Neither the MERR nor the City is obligated to assist the petitioning employee organization in curing the alleged defects to the Decertification Petition. 14.2.2 If the foregoing matters listed in Section 14.1 are affirmatively determined by the MERR, or if his/her negative determination is reversed on appeal, the MERR shall give written notice of such Decertification or Recognition Petition to the incumbent Exclusively Recognized Employee Organization and to unit employees. The MERR shall thereupon arrange for a secret ballot election to be held to determine the wishes of unit employees as to the question of decertification and, if a Recognition Petition was duly filed hereunder, the question of representation. Such election shall be conducted within the same timeframe and under the same procedures as set forth in Section 13. 14.2.3 The petitioning employee organization may appeal such determination in accordance with Section 18. 14.3 During the Filing Period or the thirty (30) day period commencing one hundred twenty (120) days prior to the termination date of a Memorandum of Understanding then having been for three (3) years or less, the MERR may give written notice of the city's specific intent to the affected employee organization, when the MERR has reason to believe that a majority of unit employees no longer wish to be represented by the incumbent Exclusively Recognized Employee Organization, give notice to said organization and all unit employees that an election will be arranged and held by the MERR to determine that issue. In such event, any other employee organization may, within fifteen (15) days of such notice, file a Recognition Petition in accordance with Section 9.3, which the MERR shall act on in accordance with this Section. 14.4 If, pursuant to this Section, a different employee organization is formally acknowledged as the Exclusively Recognized Employee Organization, such organization shall be bound by all the terms and conditions of any Memorandum of Understanding then in effect for its remaining term. Section 15. Procedure for Modification of Established Appropriate Units 15.1 Requests by employee organizations for modifications of established appropriate units ("Modification Petition") may be considered by the MERR. The Modification Petition shall be submitted during the Filing Period or the thirty (30) day period commencing one hundred twenty (120) days prior to the termination date of a Memorandum of Understanding then having been in effect for three (3) years or less, whichever occurs later, shall be in the form of a Recognition Petition, and, in addition to the requirements set forth in Section 9.3, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and standards set forth in Section 8. The MERR shall process the Modification Petition as any other Recognition Petition under this Resolution. -14-Resolution No. 2018-23 Exhibit A Page 14 of22 G-17 15.2 Proof of Support: The MERR will require proof of at least thirty (30) percent support among the affected employees if a pending representation petition by another employee organization overlaps the positions at issue in the unit modification petition. 15.3 At any time, the MERR may, by giving written notice of City's intent to the affected employee organization, propose that an established unit be modified. The MERR shall give written notice of the proposed modification(s) to any affected employee organization(s), and each employee within said affected unit or units, and shall hold a meeting concerning the proposed modification(s), at which time all affected employee organizations shall be heard. Thereafter the MERR shall determine the composition of the appropriate unit or units in accordance with Section 8, and shall give written notice of such determination to the affected employee organizations. 15.3.1 The MERR's determination may be appealed in accordance with Section 18. 15.3.2 If a unit is modified pursuant to the written notice of the MERR hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Exclusively Recognized Employee Organization for such new appropriate unit or units pursuant to Section 9. Section 16. Procedure for Processing Severance Requests 16.1 An employee organization may file a request to become the Recognized Employee Organization of a unit alleged to be appropriate that consists of a group of employees who are already a part of a larger established unit represented by another Recognized Employee Organization ("Severance Request"). The timing, form, and processing of the Severance Request shall be as specified in Section 15 for a Modification Petition. 16.2 Proof of Support: When an employee organization requests severance of classifications or positions to its established unit, the MERR will require proof of majority support of persons employed in the classifications or positions to be severed. The MERR may require proof of at least thirty (30) percent support among the affected employees. The MERR's determination may be appealed in accordance with Section 18. Section 17. Amendment of Certification 17 .1 Employee Organization Petition 17 .1.1 A Recognized Employee Organization shall file with the MERR a petition to amend its certification or recognition ("Amendment Petition") in the event of a merger, change in affiliation, or transfer of jurisdiction. 17.1.2 The Amendment Petition shall be in writing, signed by an authorized agent of the employee organization, and contain the following information: -15-Resolution No. 2018-23 Exhibit A Page 15 of22 G-18 (a) The name, address and telephone number of the employee organization and the name, address and telephone number of the agent to be contacted; (b) A brief description and the title of the established unit; (c) A clear and concise statement of the nature of the merger, amalgamation, affiliation, or other change in jurisdiction, and the new name of the employee organization. The statement shall include the following information: (1) Whether the new organization has the same structure as the former organization (e.g., eligibility for membership, dues/fees structure, continuation of the manner in which contract negotiations, administration and grievance processing will be effectuated), and if not, an explanation of the change(s) in structure; (2) Whether the officers and representatives of the new organization are the same as the former organization, and if not, a specification of the changes in officers and/or representatives; (3) Whether the power of the members to control the organization's agents is the same as it was in the former organization (e.g., input into contract proposals, contract ratification, frequency of membership meetings, preservation of the (former) organization's physical facilities, books, and assets, choosing/oversight of executive board members}, and if not, a specification of what changes have been made; and (4) Whether the organization's members were given an opportunity to vote on the change in status, and if so, a description of the voting process and results. 17 .2 Review Process 17 .2.1 Upon receipt of a petition filed pursuant to Section 17 .1 above, the MERR shall conduct such inquiries and investigations, and hold such meetings as deemed necessary and/or conduct a representation election in order to decide the questions raised by the Amendment Petition. 17 .2.2 The MERR may dismiss the Amendment Petition if the petitioner has no standing to petition for the action requested or if the Amendment Petition is improperly filed. 17.2.3 In determining whether to grant the Amendment Petition, the MERR will examine the following issues: -16-Resolution No. 2018-23 Exhibit A Page 16 of22 G-19 (a) Whether the new organization has the same or similar structure as the former organization; (b) Whether the officers and representatives of the new organization are substantially the same as the former organization; (c) Whether the power of the members to control the organization's agents are substantially the same; and (d) Whether the organization's members were given an opportunity to vote on the change in status. 17.3 Determination 17.3.1 Unless the MERR finds that there is no substantial continuity of identity and representation between the former and new organizations, the MERR will issue an amendment of certification reflecting the new identity of the Exclusive Recognized Employee Organization. Such certification shall not be considered to be a new certification for the purpose of computing time limits pursuant to Section 14. The terms and conditions of a Memorandum of Understanding then in effect shall remain in effect until said Memorandum of Understanding expires. 17.3.2 If the MERR determines that there is no substantial continuity of identity and representation between the former and new organizations, the MERR shall order an election in conformance with Section 14. 17.3.3 The MERR's determination may be appealed in accordance with Section 18. Section 18. Appeals 18.1 Within fifteen (15) days of a final decision of the MERR, (i) an employee organization aggrieved by a determination of an appropriate unit or that a Recognition Petition (Sec. 9), Challenging Petition (Sec. 11 ), Decertification Petition (Sec. 14), Modification Petition (Sec. 15), Severance Request (Sec. 16), or Amendment Petition (Sec. 17) has not been filed in compliance with Article II; or (ii) employees aggrieved by a determination that a Decertification Petition (Sec. 14) or Severance Request (Sec. 16) has not been filed in compliance with Article II, may request to submit the matter to mediation by the State Mediation and Conciliation Service. In lieu thereof, or fifteen (15) days after such mediation proceedings, said employee organization or employees may appeal such determination to the City Council for final decision. 18.2 Appeals to the City Council shall be filed in writing with the City Clerk, and a copy thereof served on the MERR. The City Council shall commence to consider the matter within thirty (30) days of the filing of the appeal. The City Council may, in its discretion, refer the dispute to a third party hearing process. Any decision of the City Council on the use of such procedure, and/or any decision of the City Council determining -17-Resolution No. 2018-23 Exhibit A Page 17 of 22 G-20 the substance of the dispute, shall be final and binding. Any costs for the appeal shall be borne equally by the City and the employee organization. ARTICLE Ill. ADMINISTRATION Section 19. Submission of Current Information by Recognized Employee Organizations All Recognized Employee Organizations and Exclusively Recognized Employee Organizations shall advise the MERR in writing immediately of any changes in the information enumerated in Sections 9.3.1 through 9.3.9 within fourteen (14) days of such change. Exclusively Recognized Employee Organizations that are party to an agency shop provision shall provide annually to the Employee Relations Officer and to unit members within 60 days after the end of its fiscal year the financial report required under Government Code Section 3502.5 (f) of the Meyers-Milias Brown Act. Section 20. Employee Organization Activities -Use of City Resources Access to City work locations and the use of City paid time, facilities, equipment and other resources by employee organizations and those representing them, shall be authorized only to the extent provided for in Memoranda of Understanding and/or administrative procedures, shall be limited to lawful activities consistent with the provisions of this Resolution that pertain directly to the employer-employee relationship and not to such internal employee organization business as soliciting membership, campaigning for office, or organization meetings and elections, and shall not interfere with the efficiency, safety, and security of City operations. ARTICLE IV. IMPASSE PROCEDURES Section 21. Initiation of Impasse Procedures If the meet and confer process has reached an Impasse, either party may initiate the Impasse procedures by filing with the other party a written request for an Impasse meeting, together with a statement declaring an Impasse and its position on all issues. An Impasse meeting shall then be scheduled promptly by the MERR. The purpose of such meeting shall be: 21.1.1 To review the position of the parties in a final effort to reach agreement on a Memorandum of Understanding; and 21.1.2 If the Impasse is not resolved, to discuss arrangements for the utilization of the Impasse procedures provided herein. -18-Resolution No. 2018-23 Exhibit A Page 18 of 22 G-21 Section 22. Impasse Procedures Impasse procedures are as follows: 22.1 If the parties agree to submit the dispute to mediation, mediation will be conducted by a mediator from the California State Mediation and Conciliation Service, unless the parties agree to use another mediator. All mediation proceedings shall be private. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. If there is a cost for the services of a mediator, such costs shall be borne equally by the City and the employee organization. 22.2 If the parties, having so agreed to mediation, fail to resolve the dispute within thirty (30) days after the appointment of the mediator, the employee organization thereafter may request to submit the Impasse to fact-finding, as provided by state law. 22.3 If the parties do not agree to mediation, the employee organization may request to submit the Impasse to fact-finding, as provided in Section 23 below. 22.4 If the Impasse has not been resolved through fact-finding, or the employee organization fails to request fact-finding, the Impasse will be sent to the City Council, which shall then hold a public hearing on the impasse and take such action regarding the Impasse as it, in its discretion, deems appropriate as in the public interest, including but not limited to unilaterally implementing its last, best, and final offer, but shall not implement a memorandum of understanding. Any legislative action by the City Council on the Impasse shall be final and binding. Section 23. Fact-Finding Procedures 23.1 Upon failure to agree to, or upon failure to reach an agreement through, mediation, the employee organization may submit a written request to the MERR and the Public Employment Relations Board for a fact-finding panel in accordance with state law. 23.1.1 If the dispute was submitted to mediation, not sooner than thirty (30) days, but not more than forty-five (45) days, after the appointment of the mediator. 23.1.2 If the dispute was not submitted to mediation, not later than thirty (30) days following the date that either party provided the other with a written notice of an Impasse and request for an Impasse meeting. 23.2 The request for fact-finding shall be filed with the Public Employment Relations Board -Los Angeles Regional Office located at 700 N. Central Ave., Glendale, California 91203-3219, with a proof of service, containing a declaration signed under penalty of perjury with the following information: (1) the name of the declarant; (2) the county and state in which the declarant is employed or resides; (3) a statement that the declarant is over the age of 18 years and not a party to the case; (4) the address of the declarant; (5) a description of the documents served; (6) the method of service and a statement that any postage or other costs were prepaid; (7) the name(s), address(es) -19-Resolution No. 2018-23 Exhibit A Page 19 of22 G-22 and, if applicable, fax number(s) used for service on the party(ies); and (8) the date of service. The Public Employment Relations Board shall approve or disapprove all requests for fact-finding. 23.3 Within five (5) working days after notification from the Public Employment Relations Board that the fact-finding request is approved, (i) each party shall select a person to serve as its member of the fact-finding panel and notify the Public Employment Relations Board of its selection; The parties shall then select the chairperson by utilizing a strike procedure whereby each side strikes a member of a list provided by PERB until one is selected. Within five (5) working days after a chairperson is selected through this procedure, the parties may alternatively mutually agree upon another person to serve as chairperson. The strike procedure will be initiated by a coin toss by a member of the City witnessed by the employee organization. The costs for the services of the chairperson, including per diem fees, if any, and actual and necessary travel and subsistence expenses, shall be divided equally between the parties. Any other mutually incurred costs shall be divided equally between the parties. Any separately incurred costs for the panel member selected by each party shall be borne by that party. 23.4 Within ten (10) days of its appointment, the fact-finding panel shall meet with the parties or their representatives, either jointly or separately, and may make inquiries and investigations, hold hearings, and take any other steps it deems appropriate, including issuance of subpoenas requiring attendance and testimony and production of evidence. 23.5 Within thirty (30) days of its appointment, or upon agreement by the parties for a longer period, and if the dispute is not settled by the parties within said time period, the fact-finding panel shall make findings of fact and recommend terms of settlement, which shall be advisory only. In making its findings and recommendations, the fact­ finding panel shall consider the following criteria: 23.5.1 State and federal laws that are applicable to the City; 23.5.2 Local rules, regulations, or ordinances; 23.5.3 Stipulations of the parties; 23.5.4 The interests and welfare of the public and the financial ability of the City; 23.5.5 Comparison of the wages, hours, and conditions of employment to employees performing similar services in comparable public agencies; 23.5.6 The consumer price index for goods and services, commonly known as the cost of living; 23.5.7 The overall compensation presently received by the employees, including direct wage compensation, vacations, holidays, and other excused time, -20-Resolution No. 2018-23 Exhibit A Page 20 of22 G-23 insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment and all other benefits received; and 23.5.8 Any other facts which are normally or traditionally taken into consideration in making the findings and recommendations. 23.6 The fact-finding panel shall submit its findings and recommendations in writing to the parties prior to making them available to the public for the purpose of resolving the impasse. The City shall make the findings and recommendations available to the public within ten (10) calendar days after its receipt. If the Impasse has not been resolved within ten (10) calendar days after the City's receipt of the fact-finding panel findings and recommendations, then the Impasse shall be sent to the City Council, which shall then hold a public hearing on the Impasse and take such action regarding the Impasse as it, in its discretion, deems appropriate as in the public interest, including but not limited to unilaterally implementing its last, best, and final offer, but shall not implement a Memorandum of Understanding. Any legislative action by the City Council on the Impasse shall be final and binding, including but not limited to unilaterally implementing its last, best, and final offer. ARTICLE V. MISCELLANEOUS PROVISIONS Section 24. Construction The City may adopt such rules, regulations and/or procedures necessary or convenient to implement the provisions of this Resolution and of the MMBA after consultation with affected Recognized Employee Organizations. Nothing in this Resolution shall be construed to deny any person or employee any rights granted by Federal or State laws. The rights, powers, and authority of the City in all matters, including the right to maintain any legal actions, shall not be modified or restricted by this Resolution. Section 25. Unlawful Strikes Nothing in this Resolution shall be construed as making the provisions of California Labor Code Section 923 applicable to City employees or employee organizations. Employees that engage in unlawful strikes may be subject to disciplinary action, up to and including termination. Section 26. Severability If any provision or portion thereof contained in this Resolution, or the application thereof, to any person or circumstances is held to be unconstitutional, invalid, or unenforceable, the remainder of this Resolution and the application of such provision, or portion thereof, to other persons or circumstances, shall be deemed severable, shall not be affected, and shall remain in full force and effect. -21-Resolution No. 2018-23 Exhibit A Page 21 of22 G-24 Section 27. Notice Wherever written notice to either party is required by this Resolution, it shall be given by email and if to the City at 30940 Hawthorne Boulevard, Rancho Palos Verdes, California 90275, and to any employee organization at its last address furnished in writing to the City, by first class registered or certified mail, postage prepaid and shall be deemed to have been received on the third day immediately following the day it was mailed (excluding Saturdays, Sundays and holidays on which the offices of the City are closed). Service of notice by mail at the sender's option, may be given by hand delivery. -22-Resolution No. 2018-23 Exhibit A Page 22 of22