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Home My WebLink AboutRES-25-7514 (MOU PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP) Page 1 of 3 RES-25-7514 CITY OF HERMOSA BEACH RESOLUTION NO. RES-25-7514 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING A SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING WITH THE PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP WHEREAS, employees of the City of Hermosa Beach, California, represented by the Professional and Administrative Employee Group, have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and, WHEREAS, the Employee Association and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding; and, WHEREAS, the Employee Association 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 has a Memorandum of Understanding with the Professional and Administrative Employees Group for the period July 1, 2025, through and including June 30, 2028. SECTION 2. The City of Hermosa and the Professional and Administrative Employees Group desire to enter into a Side Letter to amend the Memorandum of Understanding for the period July 1, 2025, through and including June 30, 2028, as shown on Exhibit A. SECTION 3. 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 3 RES-25-7514 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 Page 3 of 3 RES-25-7514 EXHIBIT A Amend Article 35 (Vacation) as follows: • 1st Year: 80 hours • 2nd Year: 80 hours • 4th Year: 96 hours • 6th Year: 112 120 hours • 10th Year: 128 144 hours • 14th Year: 144 168 hours • 18th Year: 160 192 hours All other Articles, provisions, Sections, and Exhibits of the MOU not modified herein shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto cause this Side Letter Agreement to be effective the 1st day of July 2025. PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP CITY OF HERMOSA BEACH ________________________________ _________________________________ Vicky Barker City Employees Associates Cynthia Stafford Chief Negotiator ________________________________ _________________________________ Kambria Vint Recreation Coordinator Steve Napolitano Interim City Manager _________________________________ ___________________________________ John Cordova Public Works Superintendent Brandon Walker Administrative Services Director _________________________________ Kim Swindell Administrative Assistant Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF HERMOSA BEACH AND PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP JULY 1, 2025 - JUNE 30, 2028 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 2 TABLE OF CONTENTS ARTICLE 1 – PREAMBLE ................................................................................................... 4 ARTICLE 2 – PARTIES TO MEMORANDUM ..................................................................... 4 ARTICLE 3 – RECOGNITION ............................................................................................. 4 ARTICLE 4 – MUTUAL RECOMMENDATION .................................................................... 4 ARTICLE 5 – SCOPE OF REPRESENTATION .................................................................. 5 ARTICLE 6 – FULL UNDERSTANDING, MODIFICATION, WAIVER ................................. 5 ARTICLE 7 – CONSTITUTIONALITY ................................................................................. 5 ARTICLE 8 – MANAGEMENT RIGHTS .............................................................................. 5 ARTICLE 9 – NON-DISCRIMINATION................................................................................ 7 ARTICLE 10 – PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES PURPOSE AND INTENT .................................................................... 8 ARTICLE 11 – ACCESS TO WORKSTATION .................................................................... 8 ARTICLE 12 – BULLETIN BOARDS ................................................................................... 8 ARTICLE 13 - ASSOCIATION ACCESS TO NEW EMPLOYEE ORIENTATION & INFORMATION ................................................................................... 9 ARTICLE 14 – PAYROLL DEDUCTION ............................................................................. 9 ARTICLE 15 – JOB DESCRIPTIONS AND CLASSIFICATIONS ........................................ 9 ARTICLE 16 – LABOR/MANAGEMENT COMMITTEE ..................................................... 10 ARTICLE 17 – PROPER CLASSIFICATION COMPENSATION ....................................... 10 ARTICLE 18 – PROBATION ............................................................................................. 10 ARTICLE 19 – SENIORITY ............................................................................................... 10 ARTICLE 20 – REDUCED HOUR POSITIONS ................................................................. 11 ARTICLE 21 – JOB SHARING .......................................................................................... 11 ARTICLE 22 – DEFERRED COMPENSATION ................................................................. 12 ARTICLE 23 – REST PERIOD .......................................................................................... 12 ARTICLE 24 – WORK HOURS ......................................................................................... 12 ARTICLE 25 – UNIFORMS ............................................................................................... 13 ARTICLE 26 – WAGE RATE ............................................................................................. 13 ARTICLE 27 – BILINGUAL PAY ....................................................................................... 14 ARTICLE 28 – MERIT PAY (Reportable to PERS) ........................................................... 14 ARTICLE 29 – ACTING PAY ............................................................................................. 15 ARTICLE 30 – ADDITIONAL DUTIES PAY ....................................................................... 16 ARTICLE 31 – EDUCATIONAL ALLOWANCE ................................................................. 16 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 3 ARTICLE 32 – OVERTIME ................................................................................................ 17 ARTICLE 33 - MANAGEMENT LEAVE ............................................................................. 18 ARTICLE 34 – COMPENSATORY TIME FOR NON-EXEMPT EMPLOYEES .................. 19 ARTICLE 35 – VACATION ................................................................................................ 19 ARTICLE 36 – SICK LEAVE ............................................................................................. 20 ARTICLE 37 – BEREAVEMENT LEAVE ........................................................................... 20 ARTICLE 38 – JURY DUTY .............................................................................................. 21 ARTICLE 39 – MILITARY LEAVE ..................................................................................... 21 ARTICLE 40 – HOLIDAYS ................................................................................................ 21 ARTICLE 42 – HEALTH AND WELFARE ......................................................................... 23 ARTICLE 43 – SHORT & LONG TERM DISABILITY ........................................................ 24 ARTICLE 44 – FAMILY AND MEDICAL CARE LEAVE .................................................... 25 ARTICLE 45 – LAYOFF .................................................................................................... 25 ARTICLE 46 – RETURN TO WORK FROM LAYOFF ....................................................... 25 ARTICLE 47 – REDUCTION IN LIEU OF LAYOFF ........................................................... 26 ARTICLE 48 – SELECTION OF INDUSTRIAL ACCIDENT DOCTOR OR MEDICAL FACILITY AND CONTINUATION OF HEALTH BENEFITS .............. 27 ARTICLE 49 – GRIEVANCES/APPEAL OF DISCIPLINE ................................................. 27 ARTICLE 50 - REOPENERS/ME-TOO CLAUSE .............................................................. 30 ARTICLE 51 – TERM OF AGREEMENT........................................................................... 30 Exhibit A .......................................................................................................... 32 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 4 MEMORANDUM OF UNDERSTANDING FOR THE PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP 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 Professional and Administrative Employees who are represented by the Hermosa Beach Professional and Administrative Employees (P&AE). 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 PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES, hereinafter referred to as the "Association". ARTICLE 3 – RECOGNITION The City recognizes the Association 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 P&AE. 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 Professional & Administrative Employees July 1, 2025 – June 30, 2028 5 ARTICLE 5 – SCOPE OF REPRESENTATION The Scope of Representation of the Association 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. Association members and the City can meet and confer on mutually desirable changes as needed. 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. 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 specific and express terms of this Memorandum of Understanding, City Personnel Ordinance, Personnel Rules and Regulations, and other statutory law. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 6 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 P&AE 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 work force, 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. 18. Determine administration of discipline. 19. Determine control and use of City property, materials and equipment. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 7 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. Additionally, the City expects and requires all Employees to treat one another with dignity and respect. Harassment of other Employees 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 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 8 to report the conduct to the supervisor, Department Director, Human Resources Manager or the City Manager in a timely manner. ARTICLE 10 – PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES PURPOSE AND INTENT A. The City is cognizant of the crucial role that the Professional and Administrative Employees (P&AE) have in implementing and enforcing the City’s policies, practices and procedures. The P&AE wholeheartedly accept these responsibilities and are committed to the success of City goals. The P&AE agrees to encourage Employees in an attitude of excellence of job performance and increased productivity. B. Both the City and the P&AE must positively support these concepts and mutually promote a cooperative alliance for carrying out these provisions. The P&AE is 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 P&AE as an outstanding management support team. ARTICLE 11 – ACCESS TO WORKSTATION The City agrees to grant official representatives of the Association 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 Association representative during the working hours of said employee and efforts will be made to minimize work time spent by Association representative. It is agreed that the Association representative shall be permitted to conduct a reasonable amount of Association business regarding grievances/appeals during working hours without loss of pay and that the Association may use City facilities to conduct meetings when such facilities are available. ARTICLE 12 – BULLETIN BOARDS The City and Association 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. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 9 ARTICLE 13 - ASSOCIATION 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 Association with 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 Association, which could mean representational attendance or correspondence. The Association 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 to City Employees Associates and the Association 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 Association and the City Employees Associates with the name, job title, department, work location, home and personal cellular telephone numbers, personal email addresses and home address of all bargaining unit employees every one hundred twenty (120) days. ARTICLE 14 – PAYROLL DEDUCTION It is mutually agreed that the City will, during the term of this Agreement, deduct moneys and remit to the Association as authorized by employee’s signed Association Membership Form for dues, providing there is not more than one deduction per pay period. ARTICLE 15 – JOB DESCRIPTIONS AND CLASSIFICATIONS A. The City and Association reaffirm their mutual intent to regularly review job descriptions and formal class specifications to ensure that these documents are up to date. B. It is further agreed that when a class specification is created, the City and Association will meet and attempt to reach agreement on the proposed classification, pay and job description. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 10 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 Association. 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 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. A. Probationary employees, whether new hires or promotional, shall be formally evaluated every three (3) months. B. 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 2. Ability 3. Length of Continuous Service B. When 1 and 2 are relatively equal, length of continuous service shall govern. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 11 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 – 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. 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) hours/week). Probationary period shall be twelve (12) months and at least 1,044 hours. D. City may create such positions; employees may volunteer to occupy such positions. No permanent forty (40) hour employee may be required to accept a reduced hour position. ARTICLE 21 – 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. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 12 ARTICLE 22 – DEFERRED COMPENSATION A. Each Employee, 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 fifty dollars ($50) per month. ARTICLE 23 – 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 24 – WORK HOURS 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 9/80schedule: 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 9-hour workdays and one 8-hour workday, and (2) the subsequent week consists of four 9-hour workdays with one day off. The “work week” for FLSA overtime purposes shall be established as four Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 13 hours into the shift of the eight-hour day and in such a manner that no Consecutive seven-day (168 hour) period shall exceed 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. ARTICLE 25 – UNIFORMS Uniforms will be provided to Association members as approved by the Department Director. ARTICLE 26 – WAGE RATE The City agrees to hire and appropriately compensate capable Professional and Administrative 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. 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 to the median identified by the 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, the salary table for all classifications shall be increased by three percent (3%). 4. Effective July 1, 2027, 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 Association 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 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 14 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, appointment may be made at a higher step. E. All employees covered by this Agreement shall receive a timely, annual performance review. ARTICLE 27 – BILINGUAL PAY A. The City agrees to pay a monthly premium of one hundred dollars ($100) 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. B. 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. C. Employees with bilingual ability will be tested for oral skills in the designated language through an examination process mutually agreed to by the Human Resources Manager and Association. Applicants must successfully pass the examination to be eligible for bilingual premium. ARTICLE 28 – MERIT PAY (Reportable to PERS) A. The following P&AE Employees will be eligible to receive Merit Pay for superior performance: Associate Engineer, Assistant Engineer, City Engineer, Senior Engineer, Building & Code Enforcement Official, Associate Planner, Assistant Planner, Planning Manager, Public Works Superintendent, Public Works Assistant Superintendent, Revenue Supervisor, Senior Recreation Supervisor, Management Analyst, GIS & IT Analyst, Accountant, Environmental Program Manager, Deputy City Engineer, Recreation Coordinator and Senior Management Analyst. Said bonus pay will be up to a maximum of five percent (+5%) of base monthly pay payable for six- month (bi-annual) increments. The two bi-annual periods are July 1 – December 31 and January 1 – June 30. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 15 B. In order for an employee to receive Merit Pay, the Department Director and employee shall agree to specific goals to achieve for each bi-annual period. At the end of the reporting period, the employee shall provide a detailed outline of the goals that have been met. Based on this documentation, the Director shall determine if the employee is eligible for the Merit Pay, either the full five percent (5%) or a lesser amount. Achieving any of the goals equates to performance over and above standard performance and is recognized as superior performance as it relates to these goals. The Bonus Pay will be included in the pay period following the period that is being evaluated provided that the detailed outline of goals met is received in a timely manner. 5% Superior Performance Bonus (employee met nearly 100% of the goals) 4% Superior Performance Bonus (employee met at least 80% of the goals) 3% Superior Performance Bonus (employee met at least 60% of the goals) 2% Superior Performance Bonus (employee met at least 40% of the goals) 1% Superior Performance Bonus (employee met at least 20% of the goals) C. If an employee voluntarily leaves the City before the end of the rating period or becomes a member of the Professional and Administrative Employee Bargaining Unit after the start of the rating period the Performance Bonus may be prorated. D. For salary comparison purposes, base salary shall be increased by 3.75% (75% of maximum Bonus Pay) to adjust for Bonus Pay eligibility for those classes eligible. E. The parties understand that bonus pay in these amounts is reportable to the California Public Employees Retirement System (CalPERS) as employee compensation and thus be “PERSable” to the extent permissible by law. ARTICLE 29 – 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 vacancy shall receive a higher rate of pay commencing after eighty (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 ten percent (10%) increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 16 B. 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 nine hundred sixty (960) hours per fiscal year. ARTICLE 30 – ADDITIONAL DUTIES PAY 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 four hundred dollars ($400) per month. Eligibility for the additional pay shall commence after 80 consecutive hours of such assignment. Any employee receiving Acting Pay shall not be eligible for Additional Duties Pay. Employees are eligible to receive this pay for up to six (6) months or until the duties are removed, whichever is less. 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. ARTICLE 31 – EDUCATIONAL ALLOWANCE A. City agrees that P&AE Employees who desire to enroll in training, certification programs, and/or academic courses at a State of California approved and/or recognized college or university 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 and tuition for any CSU campus rates paid by the City in advance, subject to approval of the City Manager. Employees who attend a non-CSU campus will receive up to the average tuition rate of CSULB, CSUDH & CSULA. B. Employees may be reimbursed for the initial and/or renewal of certifications and/or professional licenses that are job-related, subject to the approval of Human Resources and the City Manager. C. The employee will reimburse the City for all expenses incurred for any class or classes the employee fails or does not complete or if the employee voluntarily leaves City employment during the period they are enrolled and receive payment. D. 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% coverage, half time @ 50% coverage, etc.). Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 17 ARTICLE 32 – OVERTIME A. The City agrees to pay association members in the following classifications time and one-half (1-1/2) their regular rate of pay for all hours worked in excess of forty (40) hours worked in a work week. Overtime may be paid in either cash or compensatory time earned as part of the regular payroll process. The City will pay overtime to employees in eligible classifications in the same manner as paid to the General & Supervisory Employees Association. B. 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. C. For example, if a non-exempt employee is scheduled to work overtime at the end of their shift for three (3) hours and takes two (2) hours sick time during that same workday, the employee would receive straight time for the first two (2) extra hours and time and one-half (1-1/2) for the remaining one (1) hour. D. The City and Association agree that non-exempt 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 a non-exempt 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 for a total of 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 a non-exempt 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 a total of two and one- half (2-1/2) times the employees’ regular rate of pay. G. If a holiday falls on a non-exempt 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. Classifications eligible for overtime compensation in accordance with the FLSA include: Administrative Assistant Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 18 Deputy City Clerk Administrative Services Coordinator Crime & Intelligence Analyst Emergency Management Coordinator Executive Assistant to Police Chief I. The following classifications have been determined to be exempt from overtime as defined in the Fair Labor Standards Act (FLSA) and as FLSA applies to public agency employees. As such, these classifications shall not be eligible to accrue compensatory time or be paid overtime: Accountant Associate Engineer Associate Planner Assistant Engineer Assistant Planner Building and Code Enforcement Official City Engineer Deputy City Engineer Revenue Supervisor Deputy City Engineer Environmental Program Manager GIS & IT Analyst Management Analyst Senior Management Analyst Public Works Superintendent Recreation Coordinator Senior Engineer Senior Recreation Supervisor Public Works Assistant Superintendent Planning Manager ARTICLE 33 - MANAGEMENT LEAVE Employees in exempt classifications listed above shall receive eighty (80) hours of Management Leave each calendar year for extraordinary assignments in addition to fixed holidays, vacation, and Bereavement Leave. Management Leave does not accumulate or carry over and it must be used each year. If not used by December 31st of each calendar year, any unused Management Leave shall be forfeited. Said leave shall have no monetary value and shall be prorated for partial years’ service upon initial appointment. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 19 ARTICLE 34 – COMPENSATORY TIME FOR NON-EXEMPT EMPLOYEES A. In lieu of pay, Compensatory Time may be earned at a rate of one and one-half (1- 1/2) times the actual hours worked in an overtime situation as defined by Article 32 for non-exempt employees. 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 as 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 40 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 granted unless it would unduly disrupt operations. E. Employees may elect to cash-in accrued compensatory time quarterly each calendar year in January, April, July, and October. ARTICLE 35 – VACATION A. It is agreed that all Employees covered by this Agreement shall accrue vacation as follows: Years of Service Accrued Per Year * Probation Period 1st Year 80 hours Commencing with 2nd Year 80 hours “ “ 4th Year 96 hours “ “ 6th Year 120 hours “ “ 10th Year 144 hours “ “ 14th Year 168 hours “ “ 18th Year 192 hours B. Employees may use (subject to Department Director’s approval) up to one (1) week of vacation six (6) months after hire date (after the halfway point of probationary period). C. Vacation may be accrued up to thirty (30) month accrual level, with an automatic cash-out of hours in excess of that amount. The cash outs will take place based on the accrual balance as of November 16th and paid on the check of December 5th. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 20 D. Employees shall be reimbursed for 100% unused vacation days accrued upon resignation, retirement or termination from their employment with the City. ARTICLE 36 – SICK LEAVE A. Employees shall accrue sick leave at the rate of ten (10) hours per month. After 200 hours are accrued, a unit member may cash out annually up to a maximum of 96 hours at the Employee’s regular rate of pay at 100% rate. In lieu of cash out, Employees may convert up to a maximum of ninety-six (96) hours of sick time to vacation time annually, accrued in excess of two hundred (200) hours provided that the vacation bank does not exceed allowed maximum level. The cash outs will take place based on the accrual balance as of November 16th and paid on the check of December 5th. B. Employees covered by this Agreement may, at any time or upon resignation or retirement from their employment with the City, elect to be paid for unused sick leave accrued prior to June 30, 2017, at their current rate of pay. Sick leave accrued prior to June 30, 2017, shall be eligible for one hundred percent 100% cash-out at resignation or retirement. Except as provided in A above, unused sick leave accrued after June 30, 2017, shall not be cashed out. Pursuant to Government Code §20965, related CalPERS rules, and the City’s contract with CalPERS, upon retirement from City employment, a unit member’s unused accumulated sick leave at the time of retirement may be converted to additional service credit. C. Employees shall be eligible to use accrued sick leave during their probationary period. D. Additional information on eligible leaves, including statutory leaves, can be found in Rule XXV of the City of Hermosa Beach’s Personnel Rules. ARTICLE 37 – BEREAVEMENT LEAVE Each Employee covered by this Agreement shall receive a maximum of forty hours per occurrence to be utilized for Bereavement Leave because of a death in their immediate family, including spouse, child, parent, sibling, grandparent, grandchild, domestic partner, parent in-law, and step-child. One 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. Employees may pre-designate and substitute other immediate family 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). Bereavement Leave shall be taken within twelve (12) months of the death of the Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 21 covered family member and does not need to be consecutive nor will pay in lieu of unused leave for bereavement be provided. ARTICLE 38 – 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 39 – MILITARY LEAVE All Employees covered by this Agreement shall be entitled to Military Leave as afforded by Federal and State law but shall not receive any base salary pay while on such Leave, except as required by law. ARTICLE 40 – HOLIDAYS A. All Employees covered by this Agreement shall receive one hundred twenty (120) hours per year for 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; half-day (five (5) hours) Christmas Eve; Christmas Day, half-day (five (5) hours) New Year’s Eve. B. When a holiday falls on a normal day off, Employees shall receive Holiday Compensation Time. Employees covered by this Agreement may accrue up to 100 hours of Holiday Compensation Time for those holidays in which compensatory time is earned. The City will provide a holiday schedule to the Association for review prior to January 1 of each year. For all holidays that fall on a Friday or Saturday, City Hall offices will be open regular hours on Monday and employees will receive compensatory time. For all holidays that fall on a Sunday, the holiday will be observed on Monday. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 22 ARTICLE 41 – RETIREMENT/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, and ending 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”; AB 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 fifty percent (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. Employees who retire after July 1, 2006, and were hired before July 1, 2018, shall be eligible, upon service retirement from the City, for a medical premium supplement. Said supplement shall be in the following amount: 1. The City will contribute five percent (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 lowest costing HMO premium or five hundred dollars ($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. Said supplement shall commence with the first month following the Employee’s service retirement in which the Employee is responsible for payment of the insurance premium. 3. In order to be eligible for medical supplemental 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. 4. Retirees who are eligible for a supplement but who are not covered in the City insurance policy are still eligible to receive their supplement. 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 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 23 be provided to the City within sixty (60) days. The City will not provide retroactive reimbursement for payments not documented within sixty (60) days of payment. 5. Any Retiree receiving a benefit under this section agrees to apply for, and enroll in, any Federal and/or State medical insurance plan (e.g. Medicare, Medicaid) for which they become eligible. E. Employees who are hired after July 1, 2018, shall be eligible, upon service retirement from the City at age sixty (60) with a minimum of twenty (20) continuous City service, for a medical premium supplement. Said supplement shall be paid as follows: 1. The City shall pay a four hundred dollars ($400) per month medical supplement that shall commence with the first month following the Employee’s service retirement in which the Employee is responsible for payment of the insurance premium. 2. The City’s payments will end with the month in which the employee reached the eligibility of State of Federal Medicaid, currently sixty-five (65) years of age. ARTICLE 42 – 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). 3. Dependent Care Assistance Plans (DCAP). 4. Any other qualified benefit permitted under Section 125 and approved by the City. B. The City shall make available for employees the following insurance plans: Health, Dental, Short and Long-Term Disability, Vision and Psychological Health. Current Health, Dental, Short and Long-Term Disability, Vision, Psychological Health, or their equivalent, to remain in force during the term of this Agreement. City shall meet and confer with the bargaining unit should there be a change in providers or a change in benefit level. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 24 C. For life insurance, the City shall provide and pay the premiums for a Life Insurance policy for each Employee, payable in an amount equal to the individual’s annual salary upon such Employee’s death. D. For medical/health insurance, for the benefit years beginning January 1, 2023, and later, the City’s maximum contribution toward medical insurance for each employee’s selected plan and level of coverage will be one thousand, eight hundred seventy-five dollars and thirty-nine cents ($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. An employee who demonstrates proof of medical insurance coverage available through a spouse or domestic partner may receive a cash payment of seven hundred fifty dollars ($750) per month in lieu of City provided coverage. F. For dental insurance, the City shall pay the monthly premium contribution for full family coverage for dental insurance, including PPO. G. For psychological health, the City will continue to pay for the benefit. H. The full cost of the Vision Insurance shall be borne by the employee. I. 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 + 2 or more dependents. ARTICLE 43 – 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 nine thousand dollars ($9,000) per month and begins after ninety (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 one hundred percent (100%) of regular take-home pay. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 25 ARTICLE 44 – 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 45 – 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. B. The criterion used in determining the order of separation shall be seniority, pursuant to the Municipal Code, Chapter 2.76 – Civil Service. C. Date of hire shall include all City service including CETA and FEEA time but not part time/no benefit service. D. Seniority shall not include the time which was terminated by voluntary resignation from the competitive service, layoff, unpaid leave of absence or suspension from the competitive service but shall include time served on military leave of absence. E. 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 B, C and D. F. Employees laid-off shall have the City paid portion of their medical insurance premiums paid for two months following the date of lay-off. G. The City will endeavor to provide each affected Employee and the Association with as much notice as possible, with a minimum thirty (30) days advance notice to each affected Employee. ARTICLE 46 – 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 Professional & Administrative Employees July 1, 2025 – June 30, 2028 26 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 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 list. 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 email to last known email and 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 and email 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 Association bargaining agent. Employees to be laid off shall submit to the Human Resources office their current address and email 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 a lay-off, all accruals will be based on criteria set forth in Article 45 Layoff, paragraphs B, C, and D. ARTICLE 47 – REDUCTION IN LIEU OF LAYOFF It is mutually agreed that an Employee whose position is abolished shall be governed by Municipal Code 2.76.200 – Civil Service. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 27 ARTICLE 48 – SELECTION OF INDUSTRIAL ACCIDENT DOCTOR OR MEDICAL FACILITY AND CONTINUATION OF HEALTH BENEFITS 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 City’s 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 will continue to have payment of the City 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 43 B. C and D. F. Nothing herein shall prevent an Employee from utilizing their accrued time in lieu of receiving temporary disability payments under the provisions of the Workers’ Compensation laws of the State of California. ARTICLE 49 – GRIEVANCES/APPEAL OF DISCIPLINE This Grievance/Appeal Procedure shall be used to resolve disputes arising from any allegation by Professional and Administrative Employees that the City has violated the terms of this Resolution. A. 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. B. Grievances 1. Step 1. The Grievance shall be presented in writing to the Department Director. A meeting with the employee, Association Representative(s) and Department Director will be arranged at a mutually agreeable location and time to review and Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 28 discuss the Grievance. Such meeting will take place within ten (10) working days from the date the Grievance is received by the Department Director. The Department Director may invite other members of management to be present at such meeting. The Department Director will give a written reply by the end of (10) working days following the date of the meeting, and the giving of such reply will terminate Step 1. 2. Step 2 - If the Grievance is not settled in Step 1, it shall be submitted to the City Manager. The employee, Association Representative(s) and City Manager shall, within (10) working days after the termination of Step 1, arrange a meeting to be held at a mutually agreeable location and time to review and discuss the Grievance. Such meeting will take place within ten (10) working days from the date the Grievance is referred to Step 2. The City Manager Director may invite other members of management to be present at such meeting. A decision shall be rendered within ten (10) working days from the date of such meeting. The decision shall be in writing stating the reasons for the decision. 3. Step 3 - Grievances regarding the provisions contained within this memorandum of understanding, not settled following the City Manager’s determination and that either party desires to contest further, may be submitted to arbitration as provided in this article provided however that said Request for Arbitration shall be made within twenty (20) working days of the City Manager’s determination. 4. As soon as possible and in any event not later than fourteen (14) 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 fourteen (14) working days, an arbitrator shall be selected from a list of seven (7) arbitrators submitted by the 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. 5. Either the City or the Association may call any employee as a witness, and the City agrees to release said witness from work if they are on duty. 6. 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 the by the respective parties in the presence of each other. 7. The decision of the arbitrator within the limits herein prescribed shall be advisory only. 8. The arbitrator may hear and determine only one grievance at a time without the express agreement of the City and the Association. The parties shall share Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 29 equally the expense of the cost of the arbitration, with the exception of counsel's fees. C. Appeals of Discipline 1. Step 1: The Appeal will be presented to the Department Director within ten (10) working days after receipt of the disciplinary action. A meeting with the employee, Association Representative(s) and Department Director will be arranged at mutually agreeable location and time to review and discuss the Appeal. Such meeting will take place within ten (10) working days from the date the Appeal is received by the Department Director. The Department Director may invite other members of management to be present at such meeting. The Department Director will give a written reply by the end of the tenth (10th) working day following the date of the meeting. 2. An Appeal of Discipline in the form of a Written Reprimand shall not be appealable after Step 1, however an employee may prepare a written response to the reprimand to be placed in the employee’s personnel file. 3. Step 2: If the Appeal is not settled in Step 1, it shall be submitted to the City Manager. The employee, Association Representative(s) and City Manager shall, within ten (10) working days after the termination of Step 1, arrange a meeting to be held at a mutually agreeable location and time to review and discuss the Appeal. Such meeting will take place within ten (10) working days from the date the Appeal is referred to Step 2. The City Manager Director may invite other members of management to be present at such meeting. A decision shall be rendered within ten (10) working days from the date of such meeting. The decision shall be in writing. 4. An appeal of discipline of a suspension of less than five (5) days or a reduction in pay with a financial loss of less than five days shall not be appealable beyond Step 2. 5. Step 3: Appeal to the City Council. Major discipline may be appealed within ten (10) working days from receipt of the denial of the Step 2 in accordance with Personnel Rule XXX Appeal to the City Council. Major discipline includes suspension without pay for five (5) or more days, demotion, a reduction in pay that is equal to the financial loss caused by a suspension without pay for five (5) or more days, demotion, and termination for cause. D. Time limits, as set forth in this Article, may be extended by mutual agreement between the parties. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 30 ARTICLE 50 - REOPENERS/ME-TOO CLAUSE A. The parties agree to reopen 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 PAE 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 move to a bi-weekly payroll all bargaining units in the City must agree to this change by mutual consent. 2. The City and PAE 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. Any changes to the contribution for medical coverage can only be made by mutual consent. B. During the term of this MOU, if any other bargaining unit in the City of Hermosa Beach, except the Police Officers’ Association and the Police Management Association, receive higher increases to the proposed cost of living increases, as described in Article 28 Wage Rate, or additional benefits not afforded to P&AE, the City agrees to provide the same such increases and improvements to the Association. C. The provision of this paragraph shall expire on and not be effective after June 30, 2028. ARTICLE 51 – TERM OF AGREEMENT This Agreement shall commence July 1, 2025, and continue until midnight June 30, 2028. Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 31 IN WITNESS WHEREOF, the parties hereto cause this Agreement to be executed this __________ day of __________, 2025. PROFESSIONAL & ADMINISTRATIVE EMPLOYEE GROUP OF HERMOSA BEACH CITY OF HERMOSA BEACH NEGOTIATING COMMITTEE _________________________________ _______________________________ Vicky Barker, City Employees Associates Cynthia Stafford, Chief Negotiator _________________________________ _______________________________ Kambria Vint, Recreation Coordinator Steve Napolitano, Interim City Manager _________________________________ John Cordova, Public Works Superintendent Brandon Walker, Administrative Services Director Kim Swindell, Administrative Assistant Tiffany Nguyen, Human Resources Manager Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 32 Exhibit A Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 33 Docusign Envelope ID: D40FD8F6-355A-409A-B853-C9F8D369AF5C Professional & Administrative Employees July 1, 2025 – June 30, 2028 34 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-25-7514 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING A SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING WITH THE PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP I, Myra Maravilla, City Clerk of the City of Hermosa Beach, do hereby certify that the above and foregoing Resolution No. RES-25-7514 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