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HomeMy WebLinkAboutRES-25-7513 (MOU TEAMSTERS) Page 1 of 2 RES NO. 25-7513 CITY OF HERMOSA BEACH RESOLUTION NO. RES-25-7513 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING WITH THE GENERAL AND SUPERVISORY EMPLOYEES’ BARGAINING UNIT, TEAMSTERS LOCAL 986 WHEREAS, employees of the City of Hermosa Beach, California, represented by the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and, WHEREAS, the above bargaining unit has selected certain individuals to represent them; and, WHEREAS, General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding which has been ratified by a majority vote of the members of the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986; and, WHEREAS, the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Memorandum of Understanding. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Hermosa Beach resolves to enter into a Memorandum of Understanding with the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, to be effective for the period July 1, 2025, through and including June 30, 2028, and authorizes the City’s Chief Negotiator to sign the Memorandum of Understanding on behalf of the City. SECTION 2. This Resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Page 2 of 2 RES NO. 25-7513 PASSED, APPROVED and ADOPTED on this 26th day of August 2025. Mayor Rob Saemann PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM: ________________________________ ________________________________ Myra Maravilla Todd Leishman City Clerk Interim City Attorney Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF HERMOSA BEACH AND CALIFORNIA TEAMSTERS PUBLIC, PROFESSIONAL AND MEDICAL EMPLOYEES’ UNION, LOCAL 986 A FORMAL MEMORANDUM OF UNDERSTANDING SETTING FORTH THE HOURS, WAGES, AND WORKING CONDITIONS FOR EMPLOYEES REPRESENTED BY THE CALIFORNIA TEAMSTERS PUBLIC, PROFESSIONAL AND MEDICAL EMPLOYEES’ UNION, LOCAL 986 GENERAL & SUPERVISORY EMPLOYEES’ BARGAINING UNIT July 1, 2025 - JUNE 30, 2028 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees’ Bargaining Unit, Teamsters Local 986 1 TABLE OF CONTENTS ARTICLE 1 – PREAMBLE ............................................................................................................... 3 ARTICLE 2 – PARTIES TO MEMORANDUM .................................................................................. 3 ARTICLE 3 – RECOGNITION ......................................................................................................... 3 ARTICLE 4 – MUTUAL RECOMMENDATION ................................................................................ 3 ARTICLE 5 – SCOPE OF REPRESENTATION .............................................................................. 4 ARTICLE 6 – FULL UNDERSTANDING, MODIFICATION, WAIVER .............................................. 4 ARTICLE 7 – CONSTITUTIONALITY .............................................................................................. 4 ARTICLE 8 – MANAGEMENT RIGHTS .......................................................................................... 4 ARTICLE 9 – NON-DISCRIMINATION ............................................................................................ 6 ARTICLE 10 – PURPOSE AND INTENT ......................................................................................... 7 ARTICLE 11 – REASONABLE NOTICE .......................................................................................... 7 ARTICLE 12 – ACCESS TO WORKSTATION ................................................................................ 7 ARTICLE 13 – BULLETIN BOARDS ............................................................................................... 8 ARTICLE 14 – UNION ACCESS TO NEW EMPLOYEE ORIENTATION & INFORMATION ............ 8 ARTICLE 15 – JOB DESCRIPTIONS AND CLASSIFICATIONS ..................................................... 8 ARTICLE 16 – LABOR/MANAGEMENT COMMITTEE .................................................................... 9 ARTICLE 17 – PROPER CLASSIFICATION COMPENSATION ...................................................... 9 ARTICLE 18 – PROBATION ........................................................................................................... 9 ARTICLE 19 – SENIORITY ............................................................................................................. 9 ARTICLE 20 – JOB SHARING ...................................................................................................... 10 ARTICLE 21 – REDUCED HOUR POSITIONS ............................................................................. 10 ARTICLE 22 – DIRECT DEPOSIT ................................................................................................ 11 ARTICLE 23 – DEFERRED COMPENSATION ............................................................................. 11 ARTICLE 24 – LOCKERS ............................................................................................................. 11 ARTICLE 25 – PERSONNEL RULES ............................................................................................ 11 ARTICLE 26 – REST PERIOD ...................................................................................................... 12 ARTICLE 27 – HOURS AND OVERTIME ..................................................................................... 12 ARTICLE 28 – SCHEDULING FOR POLICE DEPARTMENT ....................................................... 14 ARTICLE 29 – UNIFORMS ........................................................................................................... 16 ARTICLE 30 – WAGE RATE ......................................................................................................... 16 ARTICLE 31 – PAYROLL DEDUCTION ........................................................................................ 18 ARTICLE 32 – STEWARDS ADMINISTRATIVE LEAVE ............................................................... 18 ARTICLE 33 – REPORT PAY ....................................................................................................... 18 ARTICLE 34 – COURT PAY ......................................................................................................... 19 ARTICLE 35 – SHIFT DIFFERENTIAL .......................................................................................... 19 ARTICLE 36 – ACTING PAY ......................................................................................................... 20 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 2 ARTICLE 37 – ADDITIONAL DUTIES PAY ................................................................................... 20 ARTICLE 38 – EDUCATIONAL ALLOWANCE .............................................................................. 20 ARTICLE 39 – PUBLIC WORKS STANDBY PAY ......................................................................... 22 ARTICLE 40 – LONGEVITY PAY .................................................................................................. 22 ARTICLE 41 – PREMIUM PAYS ................................................................................................... 22 ARTICLE 42 – VACATION ............................................................................................................ 24 ARTICLE 43 – SICK LEAVE ......................................................................................................... 24 ARTICLE 44 – BEREAVEMENT LEAVE ....................................................................................... 25 ARTICLE 45 – JURY DUTY .......................................................................................................... 26 ARTICLE 46 – MILITARY LEAVE PAY ......................................................................................... 26 ARTICLE 47 – COMPENSATORY TIME ....................................................................................... 26 ARTICLE 48 – HOLIDAYS ............................................................................................................ 27 ARTICLE 49 – RETIREMENT AND RETIREE MEDICAL .............................................................. 29 ARTICLE 50 – HEALTH AND WELFARE ...................................................................................... 30 ARTICLE 51 – SHORT & LONG TERM DISABILITY .................................................................... 32 ARTICLE 52 – FAMILY AND MEDICAL CARE LEAVE ................................................................. 32 ARTICLE 53 – LAYOFF ................................................................................................................ 32 ARTICLE 54 – RETURN TO WORK FROM LAYOFF ................................................................... 33 ARTICLE 55 – REDUCTION IN LIEU OF LAYOFF ....................................................................... 34 ARTICLE 56 – INDUSTRIAL INJURIES AND ACCIDENTS .......................................................... 35 ARTICLE 57 – DISCIPLINE, SUSPENSION, DISCHARGE .......................................................... 36 ARTICLE 58 – GRIEVANCES/APPEAL OF DISCIPLINE .............................................................. 36 ARTICLE 59 – ARBITRATION ...................................................................................................... 38 ARTICLE 60 – REOPENERS/ME-TOO CLAUSE .......................................................................... 39 ARTICLE 61 – TERM OF AGREEMENT ....................................................................................... 40 EXHIBIT A ................................................................................................................... 42 EXHIBIT B ................................................................................................................... 44 EXHIBIT C ................................................................................................................... 45 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 3 MEMORANDUM OF UNDERSTANDING FOR THE CALIFORNIA TEAMSTERS PUBLIC, PROFESSIONAL AND MEDICAL EMPLOYEES UNION, LOCAL 986 GENERAL AND SUPERVISORY EMPLOYEES’ BARGAINING UNIT JULY 1, 2025 – JUNE 30, 2028 ARTICLE 1 – PREAMBLE The provisions of this Agreement have been developed in the interest of promoting and improving Employee Relations between the City of Hermosa Beach, California and the General and Supervisory Employees who are represented by the Hermosa Beach General and Supervisory Employees’ Bargaining Unit, Teamsters, Local 986. ARTICLE 2 – PARTIES TO MEMORANDUM This Memorandum of Understanding, hereinafter referred to as the "MOU" or the "Agreement", has been entered into, pursuant to the laws of the State of California and the City of Hermosa Beach, California, by and between the CITY OF HERMOSA BEACH, hereinafter referred to as the "City" or as "Management", and the CALIFORNIA TEAMSTERS PUBLIC, PROFESSIONAL AND MEDICAL EMPLOYEES UNION, LOCAL 986, hereinafter referred to as the "Union". ARTICLE 3 – RECOGNITION The City recognizes the Union as the exclusive bargaining representative for all employees who are or become employed in those job classifications contained on Exhibit "A”, which is attached hereto and made a part of this Agreement. The parties recognize that this Agreement contains wages, benefits and working conditions that pertain only to Members of the Union. ARTICLE 4 – MUTUAL RECOMMENDATION This Agreement constitutes a mutual recommendation by the parties to the City Council. This Agreement shall become effective upon approval by the City Council of the City. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 4 ARTICLE 5 – SCOPE OF REPRESENTATION The scope of representation of the Union shall include all matters relating to employment conditions and employer-employee relations including wages, hours and other terms and conditions of employment. ARTICLE 6 – FULL UNDERSTANDING, MODIFICATION, WAIVER A. It is intended that this Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or Agreements by the parties whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. B. Except as specifically provided herein, it is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right and agrees that the other shall not be required to negotiate with respect to any subject or matter covered herein during the term of this Agreement. C. Any agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall not be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved and implemented by the City Council. D. The waiver of any breach, term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. ARTICLE 7 – CONSTITUTIONALITY If any section, subsection, sentence, clause or phrase of this Agreement is for any reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portion of this Agreement. The Union, through the use of its legal staff, will defend the City against any lawsuits brought about or due to any item of this Agreement. It is understood that the City will not have to pay any of the costs of defense of this Agreement. ARTICLE 8 – MANAGEMENT RIGHTS A. It is agreed that during the term of this Agreement herein the exercise of the following powers, rights, authority, duties and responsibilities by the City, the adoption of policies, rules, regulations and practices in furtherance thereof, and the use of judgment and the discretion in connection therewith, shall be limited only by the Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 5 specific and express terms of this Memorandum of Understanding, City Personnel Ordinance, Personnel Rules and Regulations, and other statutory law. B. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the exercise of management’s rights shall impact on employees of the bargaining unit, the City agrees to meet and confer with representatives of the Union, regarding the impact of the exercise of such rights unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding. C. MANAGEMENT RIGHTS 1. Manage the City. 2. Schedule working hours. 3. Establish, modify or change work schedules or standards. 4. Institute changes in procedures. 5. Direct the workforce, including the right to hire, promote, demote, transfer, suspend, discipline or discharge any employee. 6. Determine the location of any new facilities, building, departments, divisions, or subdivisions thereof, and the relocation, sale, leasing or closing of facilities, departments, divisions, or subdivisions thereof. 7. Determine services to be rendered. 8. Determine the layout of buildings and equipment and materials to be used herein. 9. Determine processes, techniques, methods and means of performing services. 10. Determine the size, character and use of inventories. 11. Determine the financial policy, including accounting procedures. 12. Determine the administrative organization of the system. 13. Determine selection, promotion, or transfer of employees. 14. Determine the size and characteristics of the workforce. 15. Determine the allocation and assignment of work to employees. 16. Determine policy affecting the selection of new employees. 17. Determine the establishment of quality and quantity standards and the judgment of quality and quantity of work required. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 6 18. Determine administration of discipline. 19. Determine control and use of City property, materials and equipment. 20. Schedule work periods and determine the number and duration of work periods. 21. Establish, modify, eliminate or enforce rules and regulations. 22. Place work with outside firms. 23. Determine the kinds and numbers of personnel necessary. 24. Determine the methods and means by which operations are to be conducted. 25. Require employees, where necessary, to take in-service training courses during working hours. 26. Determine duties to be included in any job classifications. 27. Determine the necessity of overtime and the amount of overtime required. 28. Take any and all necessary action to carry out the mission of the City in cases of an emergency. ARTICLE 9 – NON-DISCRIMINATION Both parties to this Agreement agree not to discriminate against any employee or applicant because of hair texture and protective hairstyles (such as braids, locks, and twists), color, religious creed (including religious dress and religious grooming practices), national origin, ancestry, citizenship status, age (40 years and older), sex (including pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions), gender, gender identity and expression (including transgender identity and expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning (or is perceived to be transitioning), sexual orientation, sex stereotyping, marital status, domestic partner status, military service and veteran status, physical and/or mental disability (including HIV and AIDS), legally protected medical condition or information (including genetic information), protected medical leaves (requesting or approved), status as a victim of domestic violence, sexual assault, or stalking, enrollment in a public assistance program, their intersectionality of protected characteristics, Association Membership or activity or any other basis protected by local, state, or federal laws. political affiliation, race, religion, color, sex, age, marital status, national origin, or handicap, and with proper regard for their privacy and constitutional rights as citizens. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 7 Additionally, the City expects and requires all employees to treat one another with dignity and respect. Harassment of team members is a violation of law. No employment decision may be made based upon an employee’s submission to or rejection of such conduct. It is the responsibility of any employee who believes that they are the victim of such harassment, to report the conduct to the supervisor, Department Head, Human Resources Manager or the City Manager in a timely manner. ARTICLE 10 – PURPOSE AND INTENT A. The City is cognizant of the crucial role that the General and Supervisory employees have in implementing and enforcing the City’s policies, practices and procedures. The General and Supervisory employees wholeheartedly accept these responsibilities and are committed to the success of City goals. The General and Supervisory employees agree to encourage employees in an attitude of excellence of job performance and increased productivity. B. Both the City and the General and Supervisory employees must positively support these concepts and mutually promote a cooperative alliance for carrying out these provisions. The General and Supervisory employees are a vital component in the current and future growth of the City and endeavors to act as a valued liaison to communicate City mandates to Employees. This attention to the pursuit of obtaining the most efficient and effective level of professionalism position the General and Supervisory employees as an outstanding team. ARTICLE 11 – REASONABLE NOTICE It is mutually understood and agreed that the City Council and/or Civil Service Board Agendas for each meeting be posted in accordance with the Brown Act and that shall constitute reasonable written notice and notice of an opportunity to meet with such agencies, on all matters within the scope of representation upon which the City Council or Civil Service Board may act. ARTICLE 12 – ACCESS TO WORKSTATION The City agrees to grant official representatives of the Union the access and right to discuss any grievance or problem arising under the terms of this Agreement with any employee during working hours. It is agreed that there will be as little interference as possible by the Union Business Representative or Shop Steward during the working hours of said employee and efforts will be made to minimize work time spent by either the Shop Steward or employee. It is agreed that the Chief Shop Steward shall be permitted to conduct a Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 8 reasonable amount of Union business regarding grievances/appeals during working hours (such time to be logged) without loss of pay and that the Union may use City facilities to conduct meetings when such facilities are available. ARTICLE 13 – BULLETIN BOARDS The City and Union agree to specifically prescribe the location of a reasonable number of bulletin board locations where the recreational, health and welfare, social affairs, notices of meetings or elections and appointments and results of elections. The posting of any other classes of notices or the distribution of any written or printed notices, cards, pamphlets or literature of any kind at City workstations or premises is prohibited without the prior permission of the City Manager or an authorized departmental management official. ARTICLE 14 – UNION ACCESS TO NEW EMPLOYEE ORIENTATION & INFORMATION Pursuant to AB 119, the City agrees to provide, when practical, no less than 10-days’notice in advance of any new employee orientations and provide the Union access to the orientation(s). Orientation refers to any onboarding process, whether in person, online or through other means. Access shall be determined by the Union, which could mean representational attendance or correspondence. The Union shall advise the City reasonably in advance as to the type of access requested. The City agrees to provide such reasonable notice of current employees that have changed position status (i.e. part-time to full-time, promotional, etc.) that necessitates a change in bargaining unit. Should the Union decide to attend the orientation, the union shall have up to 30 minutes to meet with the employee privately. The City agrees, pursuant to AB 119, to provide the Union with the name, job title, department, work location, and work telephone number of newly hired employees within thirty (30) days of the date of hire. The City also agrees to provide the Union with the name, job title, department, work location, work, home and personal cellular telephone numbers, personal email addresses and home address of all bargaining unit employees once a year or upon request as long as the prior request for such information or the provision of such information was at least more than one hundred twenty (120) days earlier. ARTICLE 15 – JOB DESCRIPTIONS AND CLASSIFICATIONS A. The City and Union reaffirm their mutual intent to regularly review job descriptions and formal class specifications to ensure that these documents are up-to-date. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 9 B. It is further agreed that when a class specification is created, the City and Union will meet and attempt to reach Agreement on the proposed classification, pay and job description. ARTICLE 16 – LABOR/MANAGEMENT COMMITTEE To provide a means for continuing communication between the parties, and for promoting a climate of constructive employee relations, a Labor/Management Committee shall be established which will consist of up to four (4) representatives designated by the City and four (4) representatives designated by the Union. Meetings will be held to promote communication and cooperation between the parties, to improve work quality and safety, and to address matters of mutual concern other than individual grievances. Meetings under this article shall be scheduled at the request of either of the parties at a mutually agreeable time and location during the City’s normal working hours. Employees shall not be additionally compensated for off-duty attendance. ARTICLE 17 – PROPER CLASSIFICATION COMPENSATION Upon promotion, step increases shall be calculated based on the anniversary date of the promotion. ARTICLE 18 – PROBATION A. All employees covered by this Agreement shall have a probationary period of twelve (12) months. Upon the recommendation of the Department Director and with the approval of the City Manager, an employee’s probation may be extended for up to six (6) months. Upon successful completion of the probation, the employee shall be given a salary step increase. B. Probationary employees, whether new hires or promotional, shall be formally evaluated every three (3) months. C. Employees shall receive notification of a probationary extension at least seven (7) calendar days prior to the one-year anniversary of the probationary period. ARTICLE 19 – SENIORITY A. Seniority shall be a determining factor in all acting appointments, promotions, and transfers within the unit. Seniority, as herein applied, shall be defined as the last date of hire with the City, and as applied shall consist of the following factors: 1. Qualifications Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 10 2. Ability 3. Length of Continuous Service B. When 1 and 2 are relatively equal, length of continuous service shall govern. C. This principle of seniority shall not apply to any employee with less than one (1) year of continuous service with the City or with less than six (6) months of service in their most recent job classification. D. Seniority shall no longer be applicable if an employee is terminated by discharge or other end of employment (except in cases of layoff). ARTICLE 20 – JOB SHARING Subject to Civil Service hiring requirements, City may allow employees to job share one permanent position on a voluntary basis. Such positions are subject to the provisions of this Memorandum of Understanding provided however that the City paid health and dental premiums or equivalent thereof, shall cover the one position, for employee only. These employees shall have their pay calculated on an hourly basis and shall accrue Vacation/Holiday/Sick Leave and employee Benefits Option proportional to regular hours worked. Designated hourly wage shall be equally reduced for each employee by the amount required to pay for the second benefit package. ARTICLE 21 – REDUCED HOUR POSITIONS A. Subject to Civil Service hiring requirements, City may hire employees in permanent positions of at least twenty (20) hours/week but less than forty (40) hours/week; such positions are subject to the provisions of this Memorandum of Understanding provided however that City paid Medical and Dental premiums shall cover the employee only. Benefit coverage is subject to the Affordable Care Act of 2010 regulations. B. These employees shall have their pay calculated on an hourly basis and shall accrue vacation/holiday/sick leave proportional to regular hours worked. Said employees are subject to the Agency Shop clause. C. Completion of a probationary period in a position of at least twenty (20) hours/week is applicable to any/all such positions; seniority shall accrue from date of appointment regardless of hours worked (at least twenty (20) hours/week and up to forty (40) Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 11 hours/week). Probationary period shall be twelve (12) months and at least 1,044 hours. D. Appointments to "Reduced Hours Positions" shall be processed on a Personnel Action form which shall designate the number of hours to be worked. There shall be an annual review of the average hours worked. E. Employees in "Reduced Hours Positions" shall be given consideration for all full-time positions before considering of other hiring to fill full-time positions. F. City may create such positions and employees may volunteer to occupy such positions. No permanent forty (40) hour employee may be required to accept a less hours/week position. ARTICLE 22 – DIRECT DEPOSIT Employees are required to enroll in "Direct Deposit" for paychecks, which is an electronic funds transfer (EFT) that deposits paychecks to the bank or credit union of the employee's choice. ARTICLE 23 – DEFERRED COMPENSATION A. Each Union Member, individually, may elect to participate in the Deferred Compensation Plans established and adopted by the City of Hermosa Beach. B. Effective the first pay period after ratification and Council approval of this MOU, the City shall match the employee’s contribution up a maximum of twenty-five dollars ($25) per month. ARTICLE 24 – LOCKERS Consistent with past practice, the City agrees to continue to provide lockers to employees covered by this Agreement, who are required to report to duty in uniform, for the purpose of storing and securing personal property. Employees accept responsibility for the cleanliness of said lockers. City supplied lockers are the property of the City and employees assigned a locker have no expectation of privacy. ARTICLE 25 – PERSONNEL RULES The City shall provide all employees with a copy of the Personnel Rules and Regulations. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 12 ARTICLE 26 – REST PERIOD A. Employees shall be allowed one (1) fifteen (15) minute rest period in accordance with departmental rules during each half of the regular workday or regular work shift. Employees working twelve (12) hour shifts shall receive three (3) fifteen (15) minute rest periods per shift. 1. These rest periods will not be taken at the beginning or end of either half of the regular workday or work shift. 2. Rest periods may not be accumulated, nor shall such rest periods have any monetary value if unused. 3. Breaks must be taken on the work site or at a City facility although it is recognized that purchases may be made in the vicinity during the rest period. ARTICLE 27 – HOURS AND OVERTIME A. For FLSA purposes a "WORK-WEEK" shall be defined as: 1. For employees working a 5/40 or 4/40 Monday through Friday schedule: commencing at 0001 hours Sunday and terminating at 2400 hours Saturday. The work week for employees working other than a Monday through Friday schedule shall be defined in such a manner as to comply with FLSA work period requirements 2. For employees working a Monday through Friday 9/80 schedule: commencing 1101 hrs. Friday and terminating the following Friday at 1100 hrs. The work week for employees working other than a Monday through Friday schedule shall be defined in such a manner as to comply with FLSA work period requirements. The “9/80” schedule provides eighty (80) scheduled hours in a 14-day (two week) cycle where (1) one week the employee works four (4) 9-hour workdays and one (1) 8- hour workday, and the subsequent week consists of four (4) 9-hour workdays with one (1) day off. The “work week” for FLSA overtime purposes shall be established as four (4) hours into the shift of the eight-hour day and in such a manner that no Consecutive seven (7) -day (168 hour) period shall exceed forty (40) hours. 3. For employees working a 3/36 schedule: The 3/36 schedule shall be established in such a manner so as to be in compliance with the Fair Labor Standards Act (FLSA) regarding overtime. B. The City agrees to pay all Union Members time and one-half (1-1/2) their regular rate of pay for all hours worked in excess of their regularly scheduled workweek. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 13 C. In determining an employee's eligibility for overtime compensation in a workweek, paid leaves of absence and unpaid leaves of absence shall be excluded from the total hours worked (this does not apply for mandatory overtime where the employee receives less than twelve (12) hours’ notice). For example, if an employee is scheduled (with more than twelve (12) hours’ notice) to work overtime at the end of their shift for three hours and takes two hours sick time during that same workday, the employee would receive straight time for the first two extra hours and time and one-half (1-1/2) for the remaining one hour. If, however, the employee is held over without notice, they would receive time and one-half (1- 1/2) for all extra hours. D. The City and Union agree that employees covered by this Agreement who are subject to the biannual daylight savings time changes will not be eligible for compensation or be subject to loss of paid time because of the change in hours. E. If an employee works on a holiday that falls on their regular workday the employee shall receive compensation at a rate of time and one half (1-1/2) in addition to their regular rate of pay for that day. The effect of this is to pay two and one-half (2-1/2) times the employee’s regular rate of pay. The employee may choose to receive either compensatory time off or pay for those hours. F. If an employee works on a holiday that falls on their regular day off, the City shall compensate the employee at the rate of time and one-half (1-1/2) their regular rate of pay for all hours worked that day. In addition, the employee will accrue Holiday comp time for the holiday. The effect of this is to pay two and one-half (2-1/2) times the employees’ regular rate of pay. G. If a holiday falls on the employee’s regularly scheduled day off and the employee does not work that day, the employee shall accrue Holiday Comp time for the holiday in accordance with the holiday schedule based on the employee’s regular work schedule. H. All overtime for Police Service Officers shall be distributed in the following manner: Seniority shall be the determining factor in all overtime. All overtime shall be offered to the most senior officer first with the following exceptions: 1. To meet immediate staffing levels, i.e. being held over for an unforeseen heavy workload or immediate emergency. 2. In the event that there is a female in custody and no female PSO is on duty, then the closest female PSO shall be offered the overtime. Closest refers to the PSO’s geographic location to the City, in which seniority shall not apply. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 14 3. Seniority shall remain the determining factor in signing up for scheduled overtime (sign-up sheets). Once a PSO signs up for scheduled overtime, he or she may be bumped by a more senior PSO with three days’ notice. The bumping PSO shall make every effort to contact the PSO bumped to advise them of the situation. In all cases, priority (without regard to seniority) shall be given to the PSO who signs up for the entire shift. 4. Once a PSO signs up for an overtime slot, he or she is responsible for fulfilling that assignment unless he or she calls in sick. The PSO cannot remove their name from the sign-up sheet unless they find a replacement or get approval from the PSO Supervisor. ARTICLE 28 – SCHEDULING FOR POLICE DEPARTMENT A. Community Services Division 1. Community Services Officers a. Police Department personnel assigned to the field operations of the Community Services Division shall have four (4) quarterly shift changes per twelve-month period. These quarterly shift changes shall begin on the first Sunday of the first month of each quarter. The quarters shall run as follows: i. June, July, August ii. September, October, November iii. December, January, February iv. March, April, May b. Shifts will be assigned on the basis of seniority. The Department will make a reasonable attempt to post the schedule thirty (30) days prior to the effective date of the rotation. c. When schedule rotation results in an employee working more than forty (40) consecutive hours, that employee will be paid time and one-half overtime for all hours worked in excess of forty (40) hours in a workweek as defined in Article 27. d. Union and Management agree that in the event there is a change in hours or the number of positions, directed by policy, a new schedule will be negotiated. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 15 2. Community Services Field Supervisors a. Community Services Field Supervisors are not included in the Community Services Field Officer’s schedule rotation and their schedule will be established according to the Department’s needs. b. When schedule rotation results in an employee working more than forty (40) consecutive hours, that employee will be paid time and one-half overtime for all hours worked in excess of forty (40) hours in a work week as defined in Article 27. B. Administrative Services Division 1. Police Service Officers/Lead/Supervisors: a. The following rules shall apply for the purpose of shift selection by all Union employees working in the Police Department Jail division: i. Seniority shall be the determining factor. ii. For the purpose of shift selection, seniority shall be defined as: a) Length of continuous service within the classification, to begin with the hire date of said classification. b) Test score of the classification. c) If Section "a” is equal, then Section "b" shall be the determining factor in seniority. b. There will be four (4) quarterly shift changes per twelve (12) month period. These quarterly shift changes shall begin on the first Sunday of the first month of each quarter, except for the month of September, which shall begin on the second Sunday of the month due to the Labor Day Holiday. The quarters shall run as follows: i. June, July, August ii. September, October, November iii. December, January, February iv. March, April, May c. The Department will make a reasonable attempt to post the schedule thirty (30) days prior to the effective date of the rotation. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 16 d. Union employees must change their shift at least once within that year, unless Management and the employee mutually agree that the employee may remain on the same shift. e. The City and the Union agree that where Police Department Management determines there is a legal obligation to provide and staff Police Department services, such staffing shall be accomplished. The Union and Police Department Management agree to meet and confer to discuss options of meeting such staffing requirements. ARTICLE 29 – UNIFORMS A. The City shall continue to provide uniforms to all Union Members in the Public Works Department in accordance with past practice or as may be modified by Agreement with the Public Works Director and approved by the City Manager. B. All Union Members assigned to work in the Police Department, who are either required to work in uniform or maintain a serviceable uniform, shall be provided with the department prescribed initial clothing necessary to perform their assignment, including shoes and jacket. C. Building Inspectors, Public Works Inspectors, Code Enforcement and Public Works City Yard employees will be eligible for the purchase of work boots once a year at a maximum price of $250 per pair. The boot allowance will not be reported to CalPERS as special compensation. Selection of the vendor and the purchasing process will be established by the Public Works Director within the purchasing policies of the City. D. The City agrees to supply employees assigned to Code Enforcement with a uniform, consisting of one (1) jacket, four (4) polo shirts, and three (3) pairs of pants, consistent with the uniform currently in place. E. After the employee has twelve (12) months of continuous service, the City shall then provide $50.00 per month for the purpose of uniform maintenance and replacement. F. Uniforms shall be worn and maintained in conformance with established department standards. ARTICLE 30 – WAGE RATE The City agrees to hire and appropriately compensate capable Teamsters Employees. They will be professional, be adequately trained, and meet standards required for such positions. The Council reaffirms that compensation will include such items as salary, deferred compensation, health insurance and merit pay. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 17 A. The salary table attached to the MOU as Exhibit A shall be revised by increasing each amount as follows: 1. Effective July 1, 2025, the salary table shall be adjusted to bring all bargaining unit positions that are below market median as determined by the 2025 Reward Strategy Group Salary Survey Results report. 2. Effective July 1, 2025, and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3%). 3. Effective July 1, 2026, and after the implementation of median adjustments, the salary table for all classifications shall be increased by three percent (3%). 4. Effective July 1, 2027, and after the implementation of median adjustments, the salary table for all classifications shall be increased by three percent (3%). B. The parties understand that these amounts shall be reported to the California Public Employees Retirement System (CalPERS) as employee compensation and thus be “PERSable.” C. The City and the Union agree that salary steps for all classifications are “1” through “5”, each step to be one (1) year apart. Step increases shall be effective at the beginning of the next pay period following the employee's anniversary of their date of hire (1st or 16th of the month). To be eligible for a step increase, an employee must receive an overall evaluation of “meeting expectations” or better. D. Generally, initial appointments shall be made at the "1” step. Upon the recommendation of the Department Director, and approval by the City Manager, the appointment may be made at a higher step. E. All employees shall be eligible for advancement through the steps based on performance. In cases of exceptional performance, and upon the recommendation of the Department Director, an employee may, with the approval of the City Manager, be advanced a step within the salary range at other than one-year intervals. Such advancement shall establish a new anniversary date for future advancements. F. The Union and City agree to the concept that all employees covered by this Agreement should receive a performance review at least annually. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 18 ARTICLE 31 – PAYROLL DEDUCTION It is mutually agreed that the City will, during the term of this Agreement, deduct moneys and remit to the Union as authorized by employee Payroll Deduction Authorization a deduction for dues, providing there is not more than one deduction per pay period. ARTICLE 32 – STEWARDS ADMINISTRATIVE LEAVE A. The City shall provide a total of one (1) shift per steward per year for use in attending employer-employee related seminars, conferences, etc., with the concurrence of the Human Resources Department. It is agreed that for the purposes of this section, the maximum number of Stewards who are eligible shall be limited to five (5). B. The Union will provide the City with a written list of Stewards upon request by the City. ARTICLE 33 – REPORT PAY A. Report Pay is that pay for all time worked, or reported to work, after the employee, having completed their last regular scheduled shift, left the work location and is requested to report to work from their domicile. Report Pay shall be equally distributed per department and not per section, if the emergency is not of a specific nature, providing the employee is qualified. Each Department shall establish a uniform "Call-Out" policy and procedure for emergencies. The policy shall include but not be limited to: (1) Equal distribution for call-outs of qualified employees, and (2) establishment of voluntary call-out lists. It is understood that any employee who declines a "call-out" will be removed from the voluntary list and will not be eligible for replacement on that list for a period of six (6) months. B. It is agreed that all employees shall receive either a minimum of four (4) hours report pay/accrued Compensatory Time or time and one-half (1-1/2) in pay or accrued Compensatory Time, whichever is greater, for any and all call-outs. Such pay received shall be considered as full compensation for said call-out and shall not be considered as hours worked for calculation of FLSA overtime. If an employee has left the City limits and is called out again, even within the four (4) hour window, they are eligible for additional call out pay of either a minimum of four (4) hours report pay/accrued Compensatory Time or time and one-half (1-1/2) in pay or accrued Compensatory Time, whichever is greater Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 19 ARTICLE 34 – COURT PAY All employees subpoenaed to court while on an off-duty status shall receive either a minimum of three (3) hours pay/accrued Compensatory Time or time and one-half (1-1/2) for actual hours spent in court, or while in an on-call status, whichever is greater. Such pay received shall be considered as full compensation for time so spent and shall not be considered as hours worked for calculation of FLSA overtime. ARTICLE 35 – SHIFT DIFFERENTIAL A. All employees covered by this Agreement working the swing shift shall receive one dollar ($1.00) per hour Shift Differential Pay. All employees working the graveyard shift shall receive one dollar and twenty-five cents ($1.25) per hour Shift Differential Pay. The parties understand that this payment is reportable to PERS and is “PERSable.” B. It is agreed that for the purpose of determining eligibility for Shift Differential Pay, the swing shift commences at 3:00 P.M., and the graveyard shift commences at 11:00 P.M. In order to be eligible for Shift Differential Pay, the assigned shift must have four (4) or more hours after commencement of the shift for which the Member claims Shift Differential Pay. Any employee who is compensated at the rate of one and one-half times their regular rate of pay shall not be eligible for Shift Differential Pay (except for Holidays worked as a part of the employee's regular schedule). C. Police Department 1. It is agreed that in the Police Department the Police Service Officers and Community Services Officers working any shift shall be paid during their lunch break and rest period, subject to recall to work at any time should the need arise. 2. Lunch breaks shall be taken as close as possible to the middle of the regular work shift. Rest periods shall be taken during each half of the regular work shift. Lunch breaks and rest periods shall be subject to the following conditions: a. They shall not be taken at the beginning or end of either half of the regular work shift. b. They shall not be accumulated, nor shall they have any monetary value if unused. c. They must be taken on the work site or within a Police Department facility although it is recognized that purchases may be made in the vicinity. 3. It is further agreed that supervisors shall make every effort to ensure that the employee receives said rest periods and lunch breaks. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 20 ARTICLE 36 – ACTING PAY A. Employees covered by this Agreement who are temporarily assigned to perform the full range of duties of a higher classification because of emergency conditions, Sick Leave, Vacation and/or relief shall receive the higher rate of pay commencing after 80 consecutive hours of such assignment. Employee shall be placed on a step in the salary range of the position in which they are temporarily assigned that provides at least a 10% increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement. B. Community Service Officers assigned temporary upgrade pay as a Supervisor will receive 5% above their regular salary. C. The parties understand that these amounts shall be reported to PERS as compensation and shall be “PERSable.” D. In accordance with Gov. Code Section 20480, if an employee is placed in an Acting position that is vacant as a result of a vacancy, the hours worked by the employee shall be reported to PERS and shall not exceed 960 hours in a fiscal year. ARTICLE 37 – ADDITIONAL DUTIES PAY A. Upon ratification of this MOU, when an employee is officially determined by their Department Director and the HR Manager to be temporarily performing additional duties outside of their classification, such employee shall be eligible for Additional Duties Pay of $400 per month. Eligibility for the additional pay shall commence after 80 consecutive hours of such assignment. An employee is eligible for additional duties pay for six (6) months or until they are no longer performing the duties. If the employee is still performing the duties after six (6), the City shall make every effort to reassign the additional duties to another eligible employee. B. Any employee receiving Temporary Upgrade Pay shall not be eligible for Additional Duties Pay. ARTICLE 38 – EDUCATIONAL ALLOWANCE A. The City agrees that Union Members who desire to enroll in training, certification programs, and/or academic courses that may provide the employee with general or specific skills and/or knowledge that contributes to their ability to perform their current position or enhances promotional opportunities, shall have their course fees, books, Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 21 and tuition (up to CSU rates) paid by the City in advance, subject to the approval of the City Manager. B. Employees who attend a non-CSU campus will receive up to the average tuition rate of CSULB, CSUDH & CSULA. C. Employees may be reimbursed for the renewal of certifications and/or professional licenses that are job-related, subject to the approval of Human Resources and the City Manager. D. The employee will reimburse the City for all expenses if the employee fails or does not complete or if the employee leaves City employment during the semester they are enrolled and receive payment. E. Advancement of tuition shall be on a “pro-rated” basis depending upon the number of hours an employee covered by this Agreement is normally scheduled to work (i.e. full time @ 100% reimbursement; half time @ 50% reimbursement, etc.). F. International Conference of Building Officials (ICBO) Certificate Pay: 1. The City shall pay a one-time bonus of $300 per certificate per person for holders of International Conference of Building Officials (ICBO) Certificates. Said bonus paid for each such Certificate commencing with the second one. 2. Certificates eligible for bonus are: • Building Inspector • Electrical Inspector • Plumbing Inspector • Mechanical Inspector • Combination Inspector • Plans Examiner • Uniform Fire Code • Rehabilitation/Conservation Inspector 3. The City shall reimburse the employee for certification and re-certification costs associated with certification examinations. 4. The parties understand that this pay increment is reportable to PERS as compensation and is “PERSable.” Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 22 ARTICLE 39 – PUBLIC WORKS STANDBY PAY A. After Hours Emergency Response 1. Qualified employees may be assigned, at the discretion of the Public Works Director or Designee, to Standby Duty for after-hours emergency response. 2. Standby Duty shall be assigned to one employee for a period of seven (7) calendar days at the rate of two hundred and fifty dollars ($250.00) per week. 3. While on Standby Duty, the assigned employee shall: carry a department provided pager; respond via telephone within ten (10) minutes to any call; and report fit-for- duty within forty-five (45) minutes following receipt of call-out information. The employee shall receive additional compensation for all hours worked pursuant to Article 33 B, “Report Pay.” 4. To be eligible for Standby Duty assignment an individual must: 1) have adequate knowledge of the City’s sewer system, the ability to troubleshoot and operate the sewer jetter, and/or 2) possess a working knowledge of the irrigation systems and operate a chainsaw for tree clearing. 5. Have the ability to drive/operate the cat, backhoe and dump trucks, and/or 6. Have a working knowledge of all electrical and street lighting systems. 7. The Public Works Superintendent shall certify that an individual possesses the required skills. The parties understand that the stipends set forth in this article are not reportable to PERS as compensation and are not “PERSable.” ARTICLE 40 – LONGEVITY PAY Employees hired prior to August 1, 1983 will continue to receive Longevity Pay of 10.25%. This amount is reportable to PERS as compensation and is “PERSable.” ARTICLE 41 – PREMIUM PAYS A. Training Premium 1. Police Service Officers and Community Service Officers who have been certified as Training Officers, as determined by the department, shall be eligible for Training Officer Premium Pay in the amount of three dollars ($3) for each hour so assigned training duties. This amount shall be reported to PERS as compensation and is “PERSable.” Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 23 B. Lead Worker/Supervisor (Police Service Officer) Premium 1. An individual in the classification of Police Service Officer may, with the approval of the Division Captain and the Chief of Police, be selected to serve in an assignment as Lead Police Services Officer and shall receive a 10% premium above base salary while so assigned. An individual so assigned may be removed with cause. This amount is reported to PERS as compensation and is “PERSable.” 2. The Lead Police Service Officer shall meet the criteria and be responsible for the duties listed in Exhibit B attached hereto. C. Public Works Department Premiums 1. Public Works Department employees in the classification of Maintenance I or Maintenance II who meet the requirements of the premium pay categories of (1) Electrician; (2) Carpenter; (3) Traffic Specialist (4) Irrigation Specialist; (5) Street Maintenance Technician; or (6) Sewer/Storm Drain Specialist, as described in Exhibit C, as certified by the Public Works Superintendent, and approved by the Public Works Director may be selected to receive a 10% premium above base salary while assigned the designated duties. A maximum of six (6) employees may receive the premium. The parties understand that this payment is not reportable to PERS and is thus not “PERSable.” 2. Employees in the classification of Public Works Inspector who attain a Penal Code 832(a) certification following completion of an introductory training course prescribed by the Commission on Peace Officer Standards and Training shall receive a 5% premium pay above base salary. D. Bilingual Premium 1. The City agrees to pay a monthly premium of $100 per month to full-time employees who have demonstrated proficiency/fluency in a second language which has been demonstrated to be of value to the City in providing customer service. This compensation will be paid to employees who are routinely and consistently assigned to positions requiring communication skills in languages other than English. This amount shall be reported to PERS as compensation and shall be “PERSable.” 2. An employee receiving Bilingual Skill Premium will be called upon to assist in any department within the City on an “as needed basis” to provide interpretation services. Individuals receiving a Bilingual Skill Premium may periodically be subject to call-out or be required to work in excess of their regular schedule. In the event of call-out or overtime, compensation shall be in accordance with the appropriate provisions of this Agreement. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 24 3. Employees with bilingual ability will be tested for oral skill in the designated language through an examination process mutually agreed upon as determined by the Human Resources Manager and Union. Employees must successfully pass the examination to be eligible for Bilingual Skill Premium. ARTICLE 42 – VACATION A. It is agreed that all employees covered by this Agreement shall accrue vacation commencing with the start of the service year as follows: Years of Service Accrued Per Year 1st – 3rd Years 80 Hours 4th – 5th Years 96 Hours 6th – 9th Years 120 Hours 10th – 13th Years 144 Hours 14th – 17th Years 168 Hours 18th Year 192 Hours B. Employees may use (subject to Department Director’s approval) one (1) week of vacation six (6) months after hire date (after halfway point of probationary period). C. No current employee shall have an accrual rate less than the rate in effect as of August 30, 1988. D. All employees may cash in up to eighty (80) hours of vacation time per fiscal year. E. Vacation may be accrued up to a thirty (30) month accrual level, with an automatic cash out for hours above that amount. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th. ARTICLE 43 – SICK LEAVE A. Sick leave shall be used only in case of sickness or disability of the employee or in the case of serious illness or death within the immediate family. Misuse of sick leave shall be grounds for disciplinary action. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 25 B. To receive compensation while absent on sick leave, employees shall notify the City per their Department's policy. C. Employees shall accrue Sick Leave at the rate of ten (10) hours per month. D. When eligible, an employee may cash in a maximum of 96 hours of unused sick leave hours earned from December 1st of the prior year to November 16th of the current year. This cash out is to be paid to the employee on the first payday in December. Provided however, in lieu of cash out employees may convert 100% of their sick time, in excess of one-hundred seventy-six (176) hours, to vacation time. All employees shall maintain a balance of one hundred seventy-six (176) sick leave hours to be eligible for any cash out. E. Upon resignation or retirement, all employees with five (5) years or more service may elect to be paid for seventy-five percent (75%) of all unused sick hours accrued prior to July 1, 2017, at their current rate upon resignation or retirement. Upon resignation or retirement, all employees with twenty (20) years or more service accrued prior to July 1, 2017, may elect to be paid for one hundred percent (100%) of all sick hours at their current rate upon resignation or retirement. F. Except as otherwise provided in E above, sick leave accrued after July 1, 2017, shall not be paid out. Pursuant to Government Code § 20965, related CalPERS, rules and the City’s contract with CalPERS. Upon retirement from City employment, an employee’s unused accumulated sick leave at the time of retirement may be converted to additional service credit. ARTICLE 44 – BEREAVEMENT LEAVE A. Each employee covered by this Agreement shall receive a maximum of forty (40) paid hours per occurrence to be utilized for Bereavement Leave because of a death in their immediate family. B. Immediate family for the purposes of this section shall be defined as: domestic partner, father; mother; father-in-law; mother-in-law; brother; sister; spouse; child, stepchild. stepfather, stepmother, grandparent, grandchild or legal dependent. Employees may pre-designate and substitute other Members defined as “immediate family.” The intent of this provision is not to expand the number of persons included in the definition of “immediate family” or to increase paid leave opportunities, but rather to recognize variation in family structure (e.g. stepmother for mother). C. One (1) additional unpaid shift shall be granted to the employee upon request. The employee can elect to use available paid leave accruals to cover the additional shift. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 26 D. Bereavement Leave shall be taken within twelve (12) months of the death and does not need to be consecutive nor will pay in lieu of unused leave for bereavement be provided. ARTICLE 45 – JURY DUTY A. If called for jury duty in a Municipal, Superior, or Federal Court, or for a Coroner’s Jury, Employees covered by this Agreement shall remain in their regular pay status. All jury fees except mileage reimbursement shall be returned to the City. The City will provide paid jury duty leave in accordance with Administrative Policy P15. B. Employees who have served four (4) or more hours in one day of jury duty will not be required to report for work within twelve (12) hours of the time they were released, dismissed, or excused from jury duty for the day. At the Supervisor’s discretion an employee may be excused from the reporting requirement if the time they would be at work is de minimis. ARTICLE 46 – MILITARY LEAVE PAY Employees covered by this Agreement will be granted Military Leave pursuant to governing State and Federal law but shall not receive any base salary pay while on such Leave, except as required by law. ARTICLE 47 – COMPENSATORY TIME A. In lieu of pay, Compensatory Time may be earned at a rate of one and one-half times the actual hours worked in an overtime situation. Said Compensatory Time may be accrued to a maximum of one hundred (100) hours with an automatic cash-out of any overage as a part of the regular payroll process. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th. B. In a holiday situation, Compensatory Time can be earned as indicated in Article 27 and can be accrued up to one hundred (100) hours with an automatic cash out of any overage. C. Separate accrual banks shall be maintained for each type of Compensatory Time. D. The granting of requests for Compensatory Time off shall not be unreasonably withheld and shall be made in accordance with departmental policies. E. Employees may elect to cash-in accrued compensatory time except during any pay period in which the employee is absent without pay. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 27 ARTICLE 48 – HOLIDAYS A. All employees covered by this Agreement working the 5/40 schedule shall receive the following holidays off with pay: New Year's Day; Martin Luther King, Jr.'s Birthday; President’s Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veterans Day; Thanksgiving Day; Thanksgiving Friday; half- day Christmas Eve (five (5) hours); Christmas Day; half-day New Year’s Eve (five (5) hours). B. Employees covered by this Agreement working the 4/40 schedule in positions assigned to areas that are closed on the holidays listed below, shall receive the following holidays off with pay: New Year's Day; Martin Luther King, Jr's Birthday; President's Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veteran's Day; Thanksgiving Day; half-day Christmas Eve (five (5) hours); Christmas Day; half-day on New Year’s Eve (five (5) hours). C. Community Service Officers & Supervisors 1. All employees covered by this Agreement working as a Community Services Officer and/or Community Service Supervisor shall receive the following holidays off with pay: Thanksgiving; Christmas Day; New Years’ Day. 2. All employees covered by this Agreement working as a Community Services Officer and/or Community Services Supervisor are eligible to receive Holiday pay for the following Holidays: Martin Luther King, Jr.’s Birthday; President’s Day; Memorial Day; Independence Day; Labor Day; Veterans’ Day; Cesar Chavez Day; Juneteenth; half-day Christmas Eve (five (5) hours); half-day on New Year’s Eve (five (5) hours). D. If an employee is not scheduled to work on a designated Holiday, they shall be compensated ten (10) hours or twelve (12) hours (depending on their regular work schedule) of Holiday Comp Time (HCE) or Holiday Pay. If an employee works on a Holiday that falls on their regular day off, the City shall compensate the employee at a rate of time and one-half (1-1/2) for overtime worked, in addition to the previously mentioned (10) hours or twelve (12) hours Holiday Comp Time or Pay. If an employee Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 28 works on a holiday that falls on their regular workday, the employee shall receive fifteen (15( hours (10 hours Holiday times 1.5) or eighteen (18) hours (12 hours Holiday times 1.5) Holiday Comp Time or Pay in addition to their regular rate of pay for that day. The effect is to pay two and one-half (2-1/2) times the employee’s regular rate of pay. The employee may choose to receive either Holiday Compensation Time or pay for those hours earned. E. All employees covered by this Agreement working a 9/80 schedule shall receive ninety (90) hours of Holiday Time per calendar year. Each year of this Agreement, the 9/80 holiday schedule for "A” Shift and “B” Shift will be developed and agreed to by Union and City. F. For all holidays that fall on a Saturday, employees will receive compensatory time. For all holidays that fall on a Sunday, the holiday will be observed on Monday. This does not apply to employees in the classification of Police Service Officer/Lead/Supervisor, Community Services Officer and Community Service Supervisor. For these positions, Holidays shall be observed on the specific calendar day that the Holiday actually falls on (not necessarily on the day that City Hall is closed in observance of the Holiday). For example, if Christmas day falls on a Sunday, the Holiday for the above noted positions will be observed on that Sunday. G. Police Service Officers/Lead/Supervisors 1. All employees covered by this Agreement working as a Police Service Officer, Lead Police Service Officer, or Police Service Officer Supervisor, are eligible to receive Holiday pay for the following Holidays: New Year’s Day; Martin Luther King, Jr.’s Birthday, President’s Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veteran’s Day; Thanksgiving Day; half-day Christmas Eve (five (5) hours); Christmas Day; half-day New Years Eve (five (5) hours). 2. If an employee is not scheduled to work on that Holiday, they shall be compensated (10) hours or twelve (12) hours (depending on their regular work schedule) of Holiday Comp Time or Pay. If an employee works on a Holiday that falls on their regular day off, the City shall compensate the employee time and one-half (1-1/2) for any overtime hours worked up to (10) hours or twelve (12) hours (depending on their shift). Any hours worked over (10) hours or twelve (12) hours will be paid at two and one-half (2-1/2) times their regular rate in addition to the (10) hours or twelve (12) hours of Holiday Comp Time/Pay stated above. If an employee works on a holiday that falls on their regular work day, the employee shall receive their regular rate of pay in addition to time and one-half (1-1/2) for all hours worked, up to (10) hours or twelve (12) hours . Any hours worked over (10) hours or twelve (12) hours will be paid at two and one-half (2-1/2) times their Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 29 regular rate. The effect is to pay two and one-half (2-1/2) times the employee’s regular rate of pay. The employee may choose to receive either Holiday Compensatory Earned (HCE) or pay for those hours earned. ARTICLE 49 – RETIREMENT AND RETIREE MEDICAL A. Tier I. The City provides the PERS 2% at 55 Plan with one-year final compensation to employees hired prior to July 1, 2011. B. Tier II. For new employees hired on or after July 1, 2011, up to and concluding December 31, 2012, the PERS retirement benefit formula shall be the 2% @ 60 plan, with retirement benefits calculated on one-year final compensation. C. Tier III. Employees hired on or after January 1, 2013, shall be subject to the Public Employee Pension Reform Act, (“PEPRA”; Assembly Bill 340) including but not limited to: 1. 2% at 62 retirement formula for those who are “new members” as that term is defined in AB 340. 2. Such new members shall pay to PERS by payroll deduction 50% of the “normal cost” as defined in AB 340 or the then current contribution rate of similarly situated employees, whichever is greater, as required by Government Code section, 7522.30(c). D. Any employee covered by this Agreement will be eligible, upon service retirement from this City, for a medical supplement. Said supplement shall be in the following amount: 1. For those who were hired before July 1, 2018, and who retired after July 1, 2008: The City will contribute 5% of the health insurance premium for each year of service with the City of Hermosa Beach up to the lesser of the single person HMO premium of the lowest cost HMO plan or $500 per month. A retiring employee must have completed a minimum of ten (10) years of service with the City of Hermosa Beach and be at least fifty-five (55) years of age to be eligible for this benefit. 2. For those who retired before June 30, 2008: For service retirement at age fifty- five (55) with a minimum of twenty (20) years continuous service, a $250 (or cost of policy whichever is less) per month medical insurance supplement, provided, however, that no currently retired employee shall have a benefit amount less than they are currently receiving. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 30 3. For those hired on or after July 1, 2018: The City will provide a medical insurance supplement of $400 per month. A retiring employee must have completed a minimum of twenty (20) years of continuous service with the City of Hermosa Beach and be at least sixty (60) years of age to be eligible for this benefit. 4. The medical supplement payments specified in Sections D(1) – D(3) above, shall commence with the first month following the employee's service retirement in which the employee is responsible for payment of the insurance premium. 5. In order to be eligible for medical supplement payments, an employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan or coverage through a spouse or domestic partner’s medical plan. 6. Retirees who are eligible for a supplement but who are not covered on the City policy are still eligible to receive their stipend. Payments will only be made when the retiree provides proof of coverage of insurance and proof of the amount paid for said coverage. Proof of coverage and the amount paid must be provided to the City within 60 days. The City will not provide retroactive reimbursement for payments not documented within 60 days of payment. The amount paid to the retiree will be the lesser of the amount paid for coverage or the stipend amount allowed by the MOU. 7. Any employee receiving a benefit under this Article agrees to apply for, and enroll in, any Federal and/or State medical insurance plan (e.g. Medicare, Medicaid, etc.) for which they may become eligible unless such Federal and/or State medical insurance plan or equivalent no longer exists. For all active employees, the benefit will end at the month in which the member becomes eligible for State or Federal Medicare, which is currently 65 years of age. ARTICLE 50 – HEALTH AND WELFARE A. The City agrees to establish and maintain a Cafeteria Plan in accordance with the provisions of Section 125 of the Internal Revenue Code. The purpose of the Plan is to allow eligible employees to elect to pay for qualified benefits on a pre-tax basis, to the extent permitted by law. The Cafeteria Plan shall permit pre-tax deductions for the following qualified benefits, subject to IRS regulations and plan design: 1. Health insurance premiums (including medical, dental, and vision coverage). 2. Health Flexible Spending Accounts (FSA). Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 31 3. Dependent Care Assistance Plans (DCAP). 4. Any other qualified benefit permitted under Section 125 and approved by the City. B. Life Insurance The City shall provide and pay the full premium for a life insurance policy for each employee payable in the amount of $50,000. C. Short- and Long-Term Disability Insurance The City will provide and pay the full premium for short- and long-term disability insurance for each employee. D. Medical Insurance The City will provide employees with a choice of a Preferred Provider Option (PPO) or a Health Maintenance Organization (HMO), both of which will include prescription coverage. The City’s maximum monthly premium contribution toward medical insurance for each employee’s selected plan and level of coverage will be $1,875.39. Employees choosing a medical insurance plan and/or coverage level with a monthly premium that exceeds the City’s maximum contribution shall pay the difference by payroll deduction. E. Dental Insurance The City’s maximum monthly premium contribution toward dental insurance for each employee’s selected plan and level of coverage will be $226.30. F. Vision Insurance The full cost of the Vision Plan shall be borne by the employee. 1. During the Term of this MOU, the City intends to review its dental and vision providers for the purpose of providing quality care for a reasonable price. If the City changes providers and the cost of the dental premium is reduced by at least 20%, the City will bear the cost of the lowest cost vision plan for the employee + two (2) or more dependents. G. Psychological Health The City will continue to provide full family coverage for the psychological health benefit. H. The City and the union mutually recognize the need to explore cost containment measures to control the increasing rates of the various lines of insurance coverage provided to City employees. As part of the annual insurance program renewal process, the City shall explore various alternate benefit levels to mitigate premium increases such Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 32 as changes to copayments and deductibles. The City agrees to meet with the Union to review and discuss any proposed changes to existing benefit levels. I. An employee who demonstrates proof of medical insurance coverage available through a spouse or domestic partner may receive a cash payment of $750.00 per month in lieu of City provided coverage. 1. An employee who receives cash in-lieu of selecting a health insurance plan shall have the amount reported as earned income for tax purposes but shall not be deemed earned income for retirement purposes. It is the understanding of the parties that dollars distributed to the employee as cash in this manner shall not be construed as earned income for PERS purposes. ARTICLE 51 – SHORT & LONG TERM DISABILITY A. The City’s Short-Term Disability (STD) Insurance Plan begins after a 7-day waiting period. The maximum benefit is 66 2/3% of earnings up to a maximum of $1,698 per week. The City’s Long Term Disability Insurance Plan provides 66 2/3% of earnings has a maximum benefit of $9,000 per month and begins after 90 days of disability or the date STD benefits end, whichever is later. B. An Employee utilizing the Short- or Long-Term Disability Plan shall not accrue Vacation, Sick Leave, Holiday Pay or allowances after the 30th calendar day after disability. C. Employees are eligible to coordinate their Short and Long-Term Disability Insurance with paid compensated time-off work to be paid up to 100% of regular take-home pay. ARTICLE 52 – FAMILY AND MEDICAL CARE LEAVE As required by State and Federal law, the City will provide Family and Medical Care Leave for eligible Employees. The City maintains a FMLA/CFRA/PDL procedure which governs Family and Medical Care Leave and is provided to all employees at the start of their employment and is also available on the City’s Intranet site ARTICLE 53 – LAYOFF A. It is mutually agreed that whenever, in the judgment of the City Council, it becomes necessary to abolish a position in the interest of economy or because the necessity for the position no longer exists, the City Council may abolish any position or employment in the competitive service and the personnel officer shall layoff, demote or transfer employees thereby affected. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 33 B. The City shall give such employees not less than thirty (30) days advance notice of separation and reason therefore. C. Layoff shall be made within classes of positions and all provisional employees in the affected class or classes shall be laid off prior to the layoff of any probationary employee. All probationary employees in the affected class or classes shall be laid off prior to the layoff of any permanent employee in the affected class or classes and such layoff shall be by seniority. D. The criterion used in determining the order of separation shall be seniority. Seniority is defined as the total time worked within one's current classification. Wherever seniority in classification is equal, the following criteria shall be applied in the order below: 1. Total City service. 2. Relative position on the certified eligibility list. 3. Drawing of lots. E. The seniority date shall be the date of permanent appointment from a certified Civil Service List. For those employees who have served in their current classification prior to 1981, the seniority date will be the date of appointment via personnel action. F. Date of hire shall include all City service including CETA and FEEA time but not part time/no benefit service. G. Seniority shall not include the time which was terminated by voluntary resignation from the competitive service, layoff, leave of absence or suspension from the competitive service but shall include time served on military leave of absence. H. When a layoff affects a classification which crosses department lines, the less senior employee in said classification shall receive the layoff regardless of department as outlined in paragraphs D, E and F. I. Employees laid off shall have the City paid portion of their medical insurance premiums paid for two months following the date of lay-off. ARTICLE 54 – RETURN TO WORK FROM LAYOFF A. It is mutually agreed that the names of probationary and permanent employees laid off shall be placed upon an eligibility list for classes which, in the opinion of the City Manager, require essentially the same qualifications and duties and responsibilities as those of the class of position from which the layoff was made. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 34 B. Names of persons laid off shall be placed at the top of eligibility lists in order of their seniority and shall remain on such lists for a period of two (2) years unless re- employed by the City. The result being, by classification, the last employee laid off shall be the first rehired. C. In the event that an employee on a rehire list is offered a position in the classification from which they were laid off and does not accept said position, then their name shall be removed from all re-employment lists. Acceptance of temporary employment does not affect eligibility on permanent re-employment lists. D. In the event that an employee on a rehire list is offered a position in a lower classification from which they were laid off and does not accept said position, their name shall be removed from the lower classification rehire list but will remain on the higher classification list. E. Employees hired from the re-employment list into a classification lower than the classification in which they were laid off shall have their names maintained on the re- employment list for the higher classification until said re-employment list expires. F. Notices of recall from layoffs shall be sent by certified mail (return receipt requested) and shall specify the date for reporting to work, which shall not be more than two (2) weeks from the date the notice is received. Notice shall be deemed to have been received when sent to the last known address on file with the City and delivery or attempted delivery is certified by postal service. Notice of recall will also be forwarded to the recognized bargaining agent. Employees to be laid off shall submit to the Human Resources office their current address at the time of separation. Upon receiving notice, the person on layoff shall have five (5) days to accept or decline the recall opportunity. G. Any employee failing to respond in writing within five (5) days of recall or failing to report on the prescribed date within the two (2) week maximum, waives all remaining rights to recall on all re-employment lists. The City will proceed to the next senior person until recall needs are met or the list(s) is exhausted. H. Upon recall from lay-off, all accruals will be based on criteria set forth in Article 53 Layoff, paragraphs D, E and F. ARTICLE 55 – REDUCTION IN LIEU OF LAYOFF A. It is mutually agreed that an employee whose position is abolished shall be permitted to drop back into the next lower classification within the same classification family and (i.e. Maintenance II to Maintenance I; Senior Account Clerk to Account Clerk) within their department and continue in service provided they are qualified to perform the Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 35 duties of the lower classification. The layoff, if any, shall be made in the lowest grade in the department of the employee having the least seniority. B. In the case of reduction of any employee in the City Service to a class with a lower pay range such employee's salary shall be reduced to a pay step in the lower range corresponding to less than one step in dollar amount below that which he held in the higher class before such reduction. C. For purposes of future step advancement, accrued time in the higher classification step shall be retained. D. An employee whose position is abolished shall be permitted to continue in service in a lateral position (same salary range) within their department if there is a vacancy and the employee meets the minimum qualifications for the vacant position. E. An employee shall be required to successfully complete a thorough background investigation for any position they assume as a result of reduction in-lieu or lateral transfer if such a background investigation is required of a new-hire employee. ARTICLE 56 – INDUSTRIAL INJURIES AND ACCIDENTS A. It is understood that the City will provide medical facilities to be used for industrial accidents or illness. B. Employees will be seen and treated by medical professionals that are part of the Medical Provider Network, unless an employee has pre-designated a physician. C. Employees may designate a personal physician to provide treatment in the event of a workers’ compensation injury or illness. A pre-designation form entitled, “PERSONAL PHYSICIAN PRE-DESIGNATION FORM FOR WORK RELATED INJURIES” must be completed in order to designate a physician. This two-page form is available in the Human Resources Office and must be signed by the employee AND their personal physician and returned to the Human Resources Office BEFORE an injury occurs in order to be valid. D. An employee who suffers an injury on duty on or after that date will continue to have payment of the City's portion of all health insurance premiums paid for a period of seven (7) full months commencing with the month in which the injury occurred. E. Accrual of vacation, sick, and holidays shall be governed by the provisions of Article 51(B). F. Nothing herein shall prevent an employee from utilizing their accrued time in addition to receiving temporary disability payments under the provisions of the Workers' Compensation laws of the State of California in order to maintain their full salary Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 36 ARTICLE 57 – DISCIPLINE, SUSPENSION, DISCHARGE A. The City understands the value of progressive discipline and will endeavor to incorporate that procedure in its disciplinary policy. Therefore, as a guideline, the City will endeavor to adhere to the following progressive disciplinary procedure: 1. Written Notice(s). 2. Written Reprimand(s). 3. Suspension(s); Reduction-in-Pay; Demotion. 4. Demotion/Reduction-in-Pay. 5. Termination. B. The above procedure will be used only as a guideline and will apply to all of the Union's classifications and positions. C. Appeals of Discipline equivalent to a suspension of four (4) days or less shall be governed by the provisions of Article 58. Appeals of discipline equivalent to five (5) days or more are governed by Article XXX of the City of Hermosa Beach Personnel Rules and Regulations. ARTICLE 58 – GRIEVANCES/APPEAL OF DISCIPLINE A. Purpose of Grievance/Appeal Procedures: 1. To promote improved Employer-Employee relations by establishing procedures on matters. 2. To provide that Grievances/Appeals shall be settled as near as possible to the point of origin. 3. To provide that the Grievance/Appeal procedures shall be as informal as possible. B. A Grievance shall be defined as a controversy between the City and the Union or an employee or employees covered by this Agreement. Such controversy must pertain to any of the following: 1. Any matter involving the application of any provision of this Agreement; or 2. Any matter involving the violations of any provision or intent of this Agreement; or Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 37 3. Any matter that affects the working conditions of the employee or the application of all rules, regulations, policies and/or laws affecting the employees covered by this Agreement. C. An Appeal of Discipline is distinct from a Grievance in that it is an action taken by an employee to request an administrative review of disciplinary action initiated against them. D. There shall be an earnest effort on the part of both parties to settle grievances/appeals promptly through the steps listed below. Grievances/Appeals must be processed with Union participation. E. STEP 1 - An employee's Grievance/Appeal must be submitted in writing by the employee fully stating the facts surrounding the Grievance/Appeal and detailing the specific provisions of this Agreement alleged to have been violated, and presented to the first line supervisor or management representative immediately in charge of the aggrieved/disciplined employee within ten (10) working day after the employee could have been reasonably expected to have had knowledge. The supervisor or management representative shall reply to the employee by the end of the tenth (10th) working day following the presentation of the Grievance/Appeal and the giving of such answer will terminate Step 1. F. STEP 2 - If the Grievance/Appeal is not settled in Step 1, the Grievance/Appeal will be presented to the Department Director (or, in the case of an appeal of a disciplinary action initiated by a Department Director or where the Department Director participated in the decision to administer discipline, to the Human Resources Manager within ten (10) working days after termination of Step 1. Appeals of written reprimands shall be presented to the Human Resources Manager. A meeting with the employee, shop steward and Department Director/Human Resources Manager (or designee) will be arranged at a mutually agreeable location and time to review and discuss the Grievance/Appeal. Such meeting will take place within ten (10) working days from the date the Grievance/Appeal is received by the Department Director/Personnel Director (or designee). The Department Director/Human Resources Manager (or designee) may invite other members of management to be present at such meeting. The Department Director/Human Resources Manager (or designee) will give a written reply by the end of the tenth (10th ) working day following the date of the meeting, and the giving of such reply will terminate Step 2. 1. An appeal of Discipline in the form of a Written Notice shall not be continued beyond the second step however an employee may prepare a written response to the reprimand to be placed in the employee’s personnel file. G. STEP 3 - If the Grievance/Appeal is not settled in Step 2, it shall be submitted to the City Manager. The Union Representative and City Manager or their designee shall, Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 38 within ten (10) working days after the termination of Step 2, arrange a meeting to be held at a mutually agreeable location and time to review and discuss the Grievance/Appeal. Such meeting will take place within ten (10) working days from the date the Grievance/Appeal is referred to Step 3. A decision shall be rendered within ten (10) working days from the date of such meeting. The decision shall be in writing. The giving of such reply will terminate Step 3. H. Time limits, as set forth above for each of the steps may be extended by mutual Agreement between the parties but neither party shall be required to so agree. I. In the event the Union calls witnesses that must be excused from work, the City agrees to excuse same in a paid status. The parties agree that in the event the Union Member or the Union fail to comply with the time limits contained herein, such failure constitutes a waiver of the right to prosecute the Grievance/Appeal; it is further agreed that in the event the City or its representatives fail to comply with the prescribed time limits, such failure constitutes an agreement to concur with the grievant’s/appellant's position and remedy. J. It is not intended that the grievance procedure be used to effect changes in the established salary and fringe benefits. ARTICLE 59 – ARBITRATION A. Grievances/Appeals which are not settled pursuant to the Grievance/Appeal procedure herein and which either party desires to contest further, shall be submitted to arbitration as provided in this Article provided however that said Request for Arbitration shall be made within ten (10) working days of the conclusion of Step 3 of the Grievance/Appeal procedure. B. As soon as possible and in any event not later than ten (10) working days after either party received written notice from the other of the desire to arbitrate, the parties shall agree upon an arbitrator. If no Agreement is reached within said ten (10) working days, an arbitrator shall be selected from a list of seven (7) arbitrators submitted by the Federal or State Mediation and Conciliation Service by alternate striking of names until one name remains. The party who strikes the first name from the panel shall be determined by lot. C. Either the City or the Union may call any employee as a witness, and the City agrees to release said witness from work if they are on duty. If an employee witness is called by the City, the City will reimburse the employee for time lost; if called by the Union; the Union may pay the expense. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 39 D. The arbitrator shall have no power to alter, amend, change, add to or subtract from any of the terms of this Agreement. The decision of the arbitrator shall be based solely upon the evidence and arguments presented to him by the respective parties in the presence of each other. E. The decision of the arbitrator within the limits herein prescribed shall be final and binding upon the parties to the dispute. F. The mutual decision of the parties and/or the arbitrator in any dispute shall be the final and binding decision on all parties and there shall not be any appeal to another board, authority, commission and/or agency for it is the intent of this Agreement to supplant the Civil Service (Personnel Board) hearing and appeal system with the provisions of this Article. G. The arbitrator may hear and determine only one grievance/appeal at a time without the express Agreement of the City and the Union. The parties shall share equally the expense of the cost of the arbitration, with the exception of counsel's fees. ARTICLE 60 – REOPENERS/ME-TOO CLAUSE A. The parties agree to open the meet and confer process during the term of this MOU only as regards the following issues. These reopeners are not contingent upon the execution of any successor MOU and no successor MOU is contingent upon agreement on these reopeners: 1. The City and Union agree to meet and confer on moving the City from a bi-monthly payroll period to a bi-weekly payroll period. It is understood that in order to do so, all bargaining units in the City must agree to this change. 2. The City and Union agree to meet and confer on Article 41(C) to find mutually agreeable language. 3. The City and Union agree to meet and confer on the City’s contribution for medical coverage if the monthly premium exceeds the cost of the family HMO plan. B. During the term of this MOU, if any other bargaining unit in the City of Hermosa Beach, except the Police Officer’s Association and the Police Management Group, receive additional increases to the proposed cost of living increases, including retroactive payments, as described in Article 30, Wage Rate, or additional benefits not afforded employees covered by this Agreement, the City agrees to provide the same such increases and improvements to the employees covered by this Agreement. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 40 C. The provision of this paragraph shall expire on and not be effective after June 30, 2028. ARTICLE 61 – TERM OF AGREEMENT This Agreement shall commence July 1, 2025, and continue until midnight June 30, 2028. This Agreement shall be effective as of the date the City Council approves the Agreement. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 41 IN WITNESS WHEREOF, the parties hereto cause this Agreement to be executed this _____ day of _____________ 2025. CALIFORNIA TEAMSTERS PUBLIC PROFESSIONAL & MEDICAL EMPLOYEES CITY OF HERMOSA BEACH UNION, LOCAL 986 _________________________________ ________________________________ Michael Grijalva, Teamsters Local 986 Cynthia Stafford Chief Negotiator Chief Negotiator _________________________________ _______________________________ Maria Marquez-Viramontes, Union Steward Steve Napolitano Interim City Manager _________________________________ _______________________________ Robert Ramos, Union Steward Brandon Walker Director of Administrative Services _________________________________ ________________________________ Chris Aviles, Union Steward Tiffany Nguyen Human Resources Manager __________________________________ Bradley Cocking, Union Steward ___________________________________ Kalyn Kaemerle, Union Steward Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 42 EXHIBIT A Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 43 EXHIBIT A (Cont.) Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 44 EXHIBIT B LEAD POLICE SERVICE OFFICER CRITERIA/DUTIES 1. Must have been satisfactorily performing all job functions within the classification of Police Service Officer. 2 Shall be Police Service Training Officer certified within twelve (12) months of appointment. 3. Must be able to utilize a Records Management System (RMS) with independence and efficiency. 4. Shall be responsible for supervision and scheduling of assigned Police Service Officers. 5. Shall participate in and coordinate performance evaluations and recommend training as necessary for assigned personnel. 6. Shall represent the jail division at department and other meeting as required. 7. Shall be responsible for recommending policies and procedures for jail operations and ensuring compliance with same when approved. 8. Shall assist in the maintenance of the jail operation manual. 9. Shall have responsibility for coordination and scheduling of the department’s Trustee Program. 10. Must have the ability to make responsible and prudent decisions in all assigned areas that pertain to the functions of the department. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 45 EXHIBIT C PUBLIC WORKS DEPARTMENT PREMIUM PAYS CRITERIA/DUTIES A. Electrician 1. Must be able to independently trouble shoot and effectively repair malfunctioning circuits and systems. 2 Must have ability to build and install high voltage components and systems. 3. Must have familiarity with, and ability to apply, Uniform Electrical Code standards. 4. Must have ability to work with and install 110 voltage systems. 5. Must be able to repair and/or replace malfunctioning components. 6. Must be able to prioritize job requests and train and supervise other employees. 7. Must have knowledge of, and be able to be assigned responsibility for, signal and street lighting systems. 8. Must have knowledge of Cal/OSHA and other accepted safety standards and approved methods of electrical installation. 9. Must have completed a minimum of three years of varied experience performing the duties of a journey level electrician. B. Carpenter 1. Must have ability to repair roofs, install drywall, and apply stucco. 2. Must have ability to perform both rough and finish carpentry. 3. Must have ability to interpret and build from building plans. 4. Must have ability to prioritize job requests and train and supervise employees. 5. Must have knowledge of, and ability to apply, accepted safety standards. 6. Must have knowledge of, and ability to apply, Uniform Build Code standards. 7. Must have completed at least one year of varied experience performing the duties of a journey level carpenter. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 46 EXHIBIT C (Cont.) C. Traffic Specialist 1. Must have knowledge of, and ability to apply, Cal/Trans manual standards as regards street markings, signage, general specifications, and traffic controls. 2. Must have ability to maintain and repair hydraulic and electrical painting equipment. 3. Must have ability to repair pumps. 4. Must have ability to prioritize job requests and train and supervise other employees. 5. Must have knowledge of, and ability to apply, accepted safety standards. D. Irrigation Specialist 1. Must be able to maintain and repair complicated automatic irrigation systems. 2. Must possess understanding of hydraulic theory. 3. Must be able to read and build from landscape and irrigation plans. 4. Must have ability to prioritize job requests and train and supervise other employees. 5. Must have knowledge of, and ability to apply, accepted safety standards. E. Street Maintenance Technician 1. Must be proficient in form setting and concrete estimating, pouring and finishing. 2. Must be proficient in estimating, laying and compacting asphalt concrete including proficiency in operation of light and heavy equipment such as backhoe, roller, tamper and saw. 3. Must be familiar with both concrete and asphalt concrete jobs. 4. Must be proficient in the safe operation of small machine operations including acetylene/oxygen cutting torch, coring machine, compressor and pavement breakers, skill saw and other small power tools, grinders, water and sand blaster, steam cleaner and other assorted hand tools. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028 47 EXHIBIT C (Cont.) 5. Must be able to apply Cal/OSHA standard for traffic control and other safety procedures in public right-of-way. 6. Will be responsible for the supervision of small construction crews. 7. Must have ability to prioritize job requests and train and supervise other employees. F. Sewer/Storm Drain Specialist 1. Must be proficient in reading and understanding existing sewer maps/videos and related documents. 2. Must be proficient in operating existing sewer rodding equipment, i.e. Sreco flexible sewer rodder and assorted small and medium sewer “snakes.” 3. Must be proficient in entering and exiting enclosed areas safely including manholes and pump stations. 4. Must be proficient in operating existing heavy equipment on the beach, such as the Cat 943 tracked Front Loader. 5. Must be able to prioritize job requests and train and supervise other employees. 6. Must be able to respond to emergency requests after regular working hours. 7. Must be able to apply Cal/OSHA standard for traffic control and other safety procedures in public right-of-way. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C State of California ) County of Los Angeles ) ss City of Hermosa Beach ) September 2, 2025 Certification of Council Action RESOLUTION NO. RES-25-7513 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING WITH THE GENERAL AND SUPERVISORY EMPLOYEES’ BARGAINING UNIT, TEAMSTERS LOCAL 986 I, Myra Maravilla, City Clerk of the City of Hermosa Beach, do hereby certify that the above and foregoing Resolution No. RES-25-7513 was duly approved and adopted by the City Council of said City at its regular meeting thereof held on the 26th day of August 2025, and passed by the following vote: AYES: MAYOR SAEMANN, MAYOR PRO TEMPORE DETOY, COUNCILMEMBERS JACKSON, KEEGAN, and FRANCOIS NOES: NONE ABSTAIN: NONE ABSENT: NONE ________________________________ Myra Maravilla City Clerk Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C