Cudahy City Council
June 17, 2025

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
03/07/2023 Page 1 of 2

STAFF REPORT
Date: June 17, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Brenda Rodriguez, Community Services Director/ Acting Human Resources Subject: Adoption of Proposed Resolution No. 25-33, a Resolution of the City Council of The City of Cudahy, California Approving the Personnel Rules and Regulations

RECOMMENDATION
The City Council is requested to approve proposed Resolution No. 25-33, replacing Resolution No. 23-11, approving the Personnel Rules and Regulations.

BACKGROUND

1. On June 7, 2022, the City Council approved Resolution No. 22-35 updating the consolidated salary schedule for miscellaneous employees.

2. On July 19, 2022, the City Council approved Resolution No. 22-42 updating the consolidated salary schedule for miscellaneous employees.

3. On December 20, 2022, the City Council approved Resolution No. 22-78 updating the consolidated salary schedule for miscellaneous employees.

4. On March 7, 2023, the City Council approved Resolution No. 23-11 approving the creation of a separate documents from the consolidated salary schedule for miscellaneous employees.

ANALYSIS
In support of effective City management and to ensure that employees are guided by up-todate standards, it is essential that personnel policies are regularly reviewed and revised.

Accordingly, the Personnel Policies and Regulations are being presented for approval.

Please note that the City is still in negotiations with the Cudahy Miscellaneous Employees Item Number
14B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
03/07/2023 Page 2 of 2

Association (CMEA). At this time, the only revision to the Personnel Policies and Regulations is an update to Section 11 sub section U. Executive Leave. Accrual, was increased from 30 hours to 40 hours.

CONCLUSION
Approval of this change will update personnel rules and regulations.

STRATEGIC PLAN CORRELATION
No Strategic Plan Correlation

FINANCIAL IMPACT
No Fiscal impact.

ATTACHMENTS
A. Proposed Draft Resolution No. 25-33, replacing Resolution No. 23-11

RESOLUTION NO. 25-33

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CUDAHY, CALIFORNIA APPROVING THE

PERSONNEL RULES AND REGULATIONS
WHEREAS, On June 7, 2022, the City Council approved Resolution No. 22-35 updating the consolidated salary schedule for miscellaneous employees; and WHEREAS, On July 19, 2022, the City Council approved Resolution No. 22-42 updating the consolidated salary schedule for miscellaneous employees; and WHEREAS, On December 20, 2022, the City Council approved Resolution No. 22-78 updating the consolidated salary schedule for miscellaneous employees; and WHEREAS, On March 7, 2023, the City Council approved Resolution No. 23-11 approving the creation of a separate documents from the consolidated salary schedule for miscellaneous employees and;

BASED UPON THE ABOVE RECITALS, THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:

SECTION 1. The recitals set forth above are true and correct and incorporated herein by this reference.

SECTION 2. The City Council hereby approves the Personnel Rules and Regulations attached hereto as Exhibit “A” and incorporated herein by reference.

SECTION 3. This Resolution and Exhibit “A” shall repeal and replace Resolution No. 23-11.

SECTION 5. If any part of this Resolution, or the application thereof, is held to be invalid, the remainder of this Resolution shall not be affected thereby, and this Resolution shall otherwise continue in full force and effect. To this end, the provisions of this Resolution, and each of them, are severable.

SECTION 6. This Resolution shall take effect immediately following its adoption by the City Council, and the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 17th day of June 2025.

Attachment A Page 165 of 434

Elizabeth Alcantar Loza
Mayor
ATTEST:

Richard Iglesias
City Clerk

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 25-33 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17th day of June, 2025, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Richard Iglesias
City Clerk

EXHIBIT “A”

PERSONNEL RULES AND REGULATIONS

PERSONNEL RULES AND REGULATIONS
(Exhibit A to Resolution No. 25-33)
Effective

CITY OF CUDAHY CALIFORNIA
Incorporated November 10, 1960
Exhibit "A" Page 169 of 434
2 Exhibit "A" Page 170 of 434
3 TABLE OF CONTENTS
PERSONNEL RULES AND REGULATIONS.......................................................................................................... 7 Section 1. Adoption of Personnel System, Purpose..................................................................................... 8 Section 2. Application ................................................................................................................................. 8 A. Applicability of Policies
B. Conflict betweenthese Policies and Memorandum of Understanding (MOU) C. Employee Acceptance of Policies and Revisions to Policies Section 3. Definition of Terms..................................................................................................................... 8 Section 4. Personal Conduct and Standards of Employment......................................................................12 A. Code of Conduct
B. Code of Ethics
C. Customer Service
D. Equal Employment Opportunity
E. Unlawful Harassment in the Workplace Policy
F. Anti- Bullying Policy
G. Discrimination and Harassment Complaint Procedure
H. Anti-Nepotism
I. Fraternization
J. Conflict of Interest
K. Attendance
L. Violence in the Workplace
M. Drug and Alcohol Policy
Section 5. Authority to Interpret .............................................................................................................. 29 Section 6. Delegation of Authority ........................................................................................................... 29 Section 7. Classification Plan..................................................................................................................... 29 A. Preparation of Classification Plan
B. Allocation of Positions
C. Adoption of Classification Plan
Exhibit "A" Page 171 of 434
4 Section 8. Filing Vacancies........................................................................................................................ 30 A. Types of Appointments
B. Reinstatement
C. Emergency Appointments
D. Temporary and Interim Appointments
Section 9. Recruitment ............................................................................................................................. 31 A. Job Announcements
B. Application Forms
C. Disqualification
D. Physical Requirements
E. Employment of Members of Family
F. Subject and Method of Examinations
G. Qualifying Grade and Rating Examinations
Section 10. Certification ........................................................................................................................... 33 A. Eligible List
B. Notification of Results
Section 11. Compensation Plan ................................................................................................................ 34 A. Preparation of Plan
B. Salary at Appointment
C. Advancement within Salary Range
D. Step Advancement
E. Merit Ranges
F. Salary of Promotion
G. Salary of Transfer
H. Salary Upon Appointment to a Position in an Acting Capacity I. Salary on Reinstatement
J. Salary on Suspension
K. Salary on Demotion
L. Changes in Salary Allocation
M. Salary on Position Reclassification
Exhibit "A" Page 172 of 434
5 N. Reduction in Salary
O. Compaction Rule
P. Salaries Above Market Rate- Use of “Y” Rating Method Q. Trainee Positions
R. Salary Differentials/ Stipends
S. Overtime
T. Compensatory Time Off
U. Executive Leave
V. On Call (Standby) Pay
W. Call Back Pay
X. Council Authority to Specific Salary
Y. Additional Compensation
Section 12. Probationary Period and Performance Evaluations............................................................... 43 A. Probationary Period
B. Employee Performance Evaluation
C. Discretionary Medical Evaluation
Section 13. Disciplinary and Appeals Procedure ..................................................................................... 44 A. Basis for Disciplinary Action
B. Disciplinary Authority
C. Emergency Suspension
D. Types of Disciplines
E. Notice of Disciplines
F. Representation
G. Employee’s Response
H. Appeal Procedures
Section 14. Grievance Procedure .............................................................................................................. 48 A. Statement of Purpose
B. Definitions
C. Procedure
D. Representation
E. Class Grievance
Exhibit "A" Page 173 of 434
6 F. Time Limits
G. Withdrawal
Section 15. Employee Activities................................................................................................................ 50 A. General Considerations
B. Determination of Inconsistent Activities
C. Improper Use of City Equipment Prohibited
D. Violations and Penalties
Section 16. Layoff Procedure................................................................................................................... 51 A. Intent
B. Procedure
C. Bumping Rights
D. Reemployment Rights
Section 17. Loyalty Oath ........................................................................................................................... 52 Section 18. Implementation ..................................................................................................................... 52 Section 19. Amendment of Rules............................................................................................................... 53 Section 20. Severability............................................................................................................................. 53

Exhibit "A" Page 174 of 434
7 PERSONNEL RULES AND REGULATIONS
Exhibit "A" Page 175 of 434
8 PERSONNEL RULES AND REGULATIONS
SECTION 1: Adoption of Personnel System – Purpose:

To establish an equitable and uniform procedure for dealing with personnel matters, to attract the best and most competent persons available to serve our community, to assure that appointments and promotions of employees will be based on merit and, to provide a reasonable degree of security for qualified, performing employees. The personnel system set forth in these rules and regulations is hereby adopted.

SECTION 2: Application:

A. Applicability of Policies
The policies and regulations shall apply with equal force to all City of Cudahy employees unless expressly exempted or excluded herein.

Independent contractors, volunteers, Commissioners and City Council are not City of Cudahy employees and are therefore not covered by the Policies included herein.

B. Conflict between these Policies and Memorandum of Understanding (MOU) If a provision of these Policies conflicts with any provision of a valid Memorandum of Understanding (MOU) between the City of Cudahy and a recognized employee organization, the provision of the MOU that conflicts with the provision of these Policies shall apply to employees who are covered by the MOU.

C. Employee Acceptance of Policies and Revisions to Policies:

As a condition of employment, the City of Cudahy requires that each employee read and, if necessary, request clarification regarding these Policies.

Each employee must sign a statement of receipt acknowledging the following: (1) they have received a copy or have been provided access to the Policies and (2) understand they are responsible for reading and becoming familiar with the contents of the Policies and all subsequent revisions.

SECTION 3: Definition of Terms:

All words and terms used in this section and in any ordinance or resolution dealing with personnel policies or procedures shall be defined as they are normally and generally defined in the field of personnel administration. For convenience, however, the following words and terms most used are hereinafter defined:
“Acting appointment” means the appointment of a person to a classification in the City service on an interim basis during which that person will continue to occupy the position from which they was appointed.
“Advancement” means a salary increase within the limits of the pay range established for classes provided by resolution.

Exhibit "A" Page 176 of 434
9 “Allocation” means the assignment of a single position to its proper class in accordance with the duties exercised, and the education and experience requirements; or, the assignment of a class to a salary range or rate.
“Appointing Power” means the appointive powers to fill positions in the competitive service.

The City Manager approved all appointments except for the Appointed Officials. “Appointment” means the employment of a person in a position. “At-Will Employee” means a person who serves at the pleasure of the appointing authority, has no property right in continued employment with the city and is not entitled to any pre- or post-disciplinary procedural due process or evidentiary appeal.
“Base Salary” means the salary range and step established in a salary resolution by the City Council exclusive of any overtime, shift differential, incentive or other type of premium pay an employee may receive.
“Call-back duty” occurs when an employee is unexpectedly ordered by their department to return to duty, following the termination of their normal work shift or work week, because of unanticipated work requirement.
“Class” means a group of positions sufficiently similar in duties, authority, responsibilities, and minimum qualifications for employment to permit combining them under a single title and the equitable application of common standards of selection and compensation. “Classification plan” means the designation by resolution of the City Council of a title for each class together with the specifications for each class as prepared and maintained by Human Resources. “Class specifications” means a written description of a class setting forth the essential characteristics, knowledge, skills, abilities, and requirements of positions in the class. “Compensatory time off” means time taken off, with pay, from work in lieu of overtime pay previously accrued by the employees.
“Competitive service” means all positions in the City service except those excluded under Section 2.
“Continuous service” means the employment without break or interruption of an employee having a probationary or regular appointment. A break or interruption in continuous service shall be construed as an absence of the employee from their employment initiated by either the City or the employee for periods of more than fifteen consecutive calendar days. “Demotion” means the reduction in the pay rate of an employee. “Dismissal” means the involuntary separation, including layoff, of an employee from the City service.
“Eligible” means a person who may be appointed to a vacant position in the competitive service as provided by these rules.
“Eligible list” means a list of names of persons who have taken an examination for a position in the competitive service and passed and are ranked on the list in order of the score received.

Exhibit "A" Page 177 of 434
10 “Employee” means a person occupying a position in the competitive service. “Exempt classes “means those classes of positions that, by the nature of the job requirements, do not earn overtime.
“Full-time position” means a position in the competitive service of the City which requires 40 hours of work per week.
“Incidental overtime” means the designation given to overtime of less than 30 minutes, that is nonrecurrent.
“Independent Contractor” means not a city employee and serves solely pursuant to a contracted entered by the City pursuant to City’s purchasing policies and procedures. “Interim position” means a full-time or part-time position for a designated period which may extend beyond the six-months’ limit reserved for temporary positions. “Layoff” means the separation of an employee from City service for reasons of economy or efficiency or reductions or elimination of City services. “Merit salary increase” means the increase of an employee’s salary within the salary range established for the class of position they occupy because of satisfactory job performance in such position.
“Overtime” means the time which an interim, probationary, or permanent employee is required to work beyond the number of hours prescribed for a full-time employee in that classification in a week. “Part-time position” means a position having a work week of fewer hours than the work week established for full-time positions. A part-time position may be either interim, temporary, or permanent. “Permanent position” means a full-time or part-time position which is expected to exist indefinitely.
“Position” means a combination of duties and responsibilities assigned to a single employee. “Probationary Employee” means an employee who is serving a probationary period after beginning employment with the City or after being promoted to a higher job classification. During the initial probationary period, a probationary employee serves at the pleasure of the appointing authority, has no property right in continued employment, and is not entitled to any pre- or post-disciplinary procedural due process or evidentiary appeal.
“Promotion” means the advancement of an employee from a position in one class to a position in another class having a higher maximum salary rate.
“Promotional Exam” means an exam for a position which is open only to employees in positions in the same class.
“Reclassification” means the reassignment of a position from one class to a different class in accordance with a reevaluation of the minimum qualifications, duties, and responsibilities of the position.

A reclassification is distinguished from a demotion in that there is no reduction in the maximum salary rate.
“Reduction in Salary” means a salary decrease within the limits of the pay range established for a Exhibit "A" Page 178 of 434
11 class.
“Regular employee” means an employee who has successfully completed their probationary period in a permanent budgeted position in the competitive service. “Rejection” means the involuntary separation from the City service of an employee who has not successfully completed their probationary period, or, the reduction of an employee who did not successfully complete their probationary period to a position in a different class in which they had previously acquired regular status.
“Reinstatement” means the reappointment of an employee to a position in a same or comparable class within twenty-four (24) months of their resignation in good standing. No credit shall be granted for prior service in terms of benefits accrued or seniority. A reinstated employee shall serve a probationary period.
“Reprimand” means a written criticism of an employee’s work performance which is issued to an employee in accordance with administrative policies and procedures. “Resignation” means the voluntary separation of an employee from the City service. “Salary advancement eligibility date” means the future date on which a regular employee is eligible for a merit salary increase.
“Salary plan” means the assignment by the City Council resolution of salary ranges and/or salary rates to each class.
“Salary range” means the range of salary rates for a class. “Salary step” means the minimum through maximum salary increments of a salary range. “Seniority” means the length of time of continuous service in the competitive service; after an employee completes the probationary period, seniority is calculated from the date of probationary appointment to the full-time position.
“Standby duty” means that an employee who is released from duty is required by their department to leave notice where they can be reached and that they be available to return to duty when required. “Standby duty” requires that an employee 1) be ready to respond immediately, 2) be reachable by phone or electronic page (if provided), 3) be able to report within a specified period of time, and 4) refrain from any activities which might impair their ability to perform assigned duties. “Suspension” means the temporary separation of an employee from the service with or without pay for disciplinary purposes.
“Temporary appointment” means an appointment to a temporary or permanent position for a period of six months or less which may be extended by the City Manager for a maximum of an additional six months.
“Temporary employee” means a full-time or part-time position that is an at-will employee but of limited or short duration. They serve at-will, at the pleasure of the appointing authority, have no property right in continued employment, and are not entitled to any pre- or post-disciplinary procedural due process or evidentiary appeal.
“Termination” means the separation of an employee from the City service because of retirement, Exhibit "A" Page 179 of 434
12 resignation, death or dismissal.
“Title”, “class title”, “title of class” means the official name applied to a class and to each position allocated to the class and to the incumbent of each position. “Transfer” means a change of an employee from one position to another position in the same class or in another class having the same maximum salary rate, involving the performance of basically similar duties, and requiring substantially the same minimum qualifications. “Volunteer” means a person that is not a City employee but is instead an individual who provides services to the City for civic or philanthropic reasons and receives no compensation or benefits other than nominal fees and reimbursement of expenses. They have no property right in continued employment and are not entitled to any pre- or post-disciplinary procedural due process or evidentiary appeal.

SECTION 4: Personal Conduct and Standards of Employment:

A. Code of Conduct:

All employees of the City will carry out their duties and responsibilities in a way that demonstrates respectful treatment of the public and other employees. Examples of respectful behavior include being patient, courteous and caring, listening carefully, keeping voices low and calm, requesting information or materials thoughtfully, treating others as you would want to be treated, treating each person as a unique individual whose needs are of utmost importance, not overreacting to others inappropriate behavior or using profanity, having empathy for the circumstances of others, and maintaining relationships with other people in a consistent manner with mutual satisfaction and helpfulness.

Conduct which violates these Polices, including violations of the Code of Conduct, may result in disciplinary action, up to and including termination.

B. Code of Ethics:

All employees are expected to be guided by prudent judgment and personal responsibility, whether when serving the public or working with colleagues. All decisions and actions will be guided by the following principles:

1. Upholding City policies in a transparent and consistent manner at all times.

2. Making unbiased decisions and using authority fairly and responsibly in all daily actions.

3. Always acting with honesty and integrity.

4. Advocating for an environment that promotes public trust.

5. Never using City resources or position for personal gain.

6. Always being mindful of how your actions may be perceived by others and avoiding conflicts of interest.

C. Customer Service:

All employees are expected to be polite, courteous, prompt, and attentive to every City resident, customer, or visitor. When an employee encounters an uncomfortable situation that they do not feel capable of handling, the employee should call his or her supervisor immediately for assistance.

We are here to serve the community as public servants. All our efforts should be focused on the Community receiving the best possible services from their local government

Our customers ultimately pay our wages. We strive to provide excellent customer service, and this includes avoiding altercations and/or arguments with customers. If you experience a difficulty in addressing a customer concern, you should seek assistance from a co‐worker or supervisor.

Exhibit "A" Page 180 of 434
13 Customers are to be treated courteously and always given proper attention. Never regard a customer's question or concern as an interruption or an annoyance. You must respond to inquiries from customers, whether in person or by telephone, promptly and professionally.

Never place a telephone caller on hold for an extended period. Direct incoming calls to the appropriate person and make sure the call is received.

Through your conduct, show your desire to assist the customer in obtaining the help they need. If you are unable to help a customer, find someone who can.

All correspondence and documents, whether to customers or others, must be neatly prepared and error‐ free. Attention to accuracy and detail in all paperwork demonstrates your commitment to those with whom we do business.

Never argue with a customer. If a problem develops or if a customer remains dissatisfied, ask your supervisor or Human Resources to intervene.

D. Equal Employment Opportunity:

Equal employment opportunity through affirmative action shall be accorded to all persons regardless of their race, color, national origin, religion, sex, sexual expression or identity, age, handicap, marital status, or political opinions and affiliations. All persons shall receive equal treatment in matters affecting recruitment, hiring, promotion, discipline, compensation, assignments, benefits, training, layoff, and recall practices and any other matters affecting employment.

The City prohibits discrimination against employees and applicants for employment based on the employee’s or applicant’s race, religious creed, color national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identify, gender expression, age (40 and over), sexual orientation, or military and veteran status or any other basis protected by law.

E. Unlawful Harassment in the Workplace Policy
1). Policy Statement:

It is the policy of the City to prohibit harassment, discrimination, and retaliation in the workplace and to provide a procedure for investigating and resolving internal complaints regarding such conduct. The city encourages all covered individuals to report any conduct that they believe violates this Section. By definition, discrimination or harassment is not within the course and scope of an individual’s employment with the city.

Harassment or discrimination between supervisors and employees, co‐workers, and employees and non‐employees on the basis of a protected class, as defined herein, is prohibited and will not be tolerated while they or any of them are on any City property or premises, and/or performing services on behalf of or for the City. This Section prohibits harassment and discrimination because: (a) of an employee’s protected classification; (b) of the perception that an employee has a protected classification; or (c) the employee associates with a person who has or is perceived to have a protected classification.
2) No Retaliation:

Retaliation is prohibited against a person for filing a harassment, discrimination and/or retaliation charge or complaint; instituting or causing to be instituted any proceeding under or related to this Article; testifying or about to testify in any such proceeding or investigation; providing information or assisting in an investigation; and/or associating with a person who is involved in reporting harassment Exhibit "A" Page 181 of 434
14 and/or discrimination or who participated in the complaint or investigation process. Retaliation is also prohibited against a person who has engaged in protected activity under the Affordable Care Act, including but not limited to filing an internal or external complaint about alleged Affordable Care Act violations, and/or participating in an investigation or proceeding regarding such complaints. No employee shall be subject to any form of retaliation for reporting any violation, or participating in any investigation under this Section, provided that they have done so truthfully and in good faith.

The City has a zero tolerance policy, and will take appropriate and immediate corrective action when it concludes that discrimination, harassment, and/or retaliation has occurred. Employees found to be discriminating, harassing, and/or retaliating against another employee shall be subject to disciplinary action, up to and potentially including dismissal. 3) Application:

This Article applies to all City employees while they are on any City property or premises, and/or while performing services on behalf of or for the City.

This Article also applies to all non‐employees, including City elected and appointed officials, job applicants, vendors, contractors, business associates, volunteers, and members of the public, who are on any City property or premises, and/or performing services on behalf of or for the City pursuant to contract or other arrangements. Except where the context requires otherwise, all references to employees in this Section shall include non‐employees specified in this subsection. 4) Definitions:

1. “Protected Class” includes race, religion, color, sex, sexual orientation, gender, gender identity, gender expression, military or veteran status, national origin, ancestry, citizenship status, marital status, pregnancy, age, medical condition, genetic characteristics, physical or mental disability or other statutorily protected classes,

2. “Discrimination” includes treating an individual differently because of the individual’s protected classification.

3. “Harassment” includes any conduct which would be unwelcome to a reasonable person of the recipient’s same protected class and which is taken because of the recipient’s protected class.

It is no defense that the recipient appears to have voluntarily consented to the conduct at issue. A recipient may not protest for many legitimate reasons, including the need to avoid being insubordinate or to avoid being ostracized. Simply because no one has complained about a joke, gesture, picture, physical contract, or comment does not mean that the conduct is welcome. Harassment can evolve over time. The fact that no one is complaining now does not preclude someone from complaining if the conduct is repeated in the future.

Even visual, verbal and/or physical conduct between two employees who appear to welcome it can constitute harassment of a third person who observes the conduct or learns about the conduct later. Conduct can constitute harassment even it if is not explicitly or specifically directed at an individual.

Conduct can constitute harassment even if the person engaging in the conduct had no intention to harass (e.g., gifts, over attention, or endearing nicknames). Even wellintentioned conduct can violate this Section if the conduct is directed at or implicates a protected class, and if a reasonable person of the recipient’s same protected class would find it offensive.

Exhibit "A" Page 182 of 434
15 Examples of harassment include, but are not limited to, the following types of behavior resulting from a person’s protected class:

Verbal harassment, such as speech, epithets, derogatory comments, or slurs, or propositioning on the basis of a protected class. This might include inappropriate comments on appearance, including dress or physical features, or dress consistent with gender identification, or race, sexual, or ethnicity-oriented stories or jokes.

Physical harassment, such as assault, impeding or blocking movement, offensive touching, or physical interference with normal work or movement. This includes pinching, grabbing, patting, propositioning, leering, or making explicit or implied job threats or promises in return for submission to physical acts.

Visual harassment, such as derogatory posters, notices, e‐mails, bulletins, cartoons, pictures, or drawings; related to a protected class.

Environmental harassment creates a work environment that is permeated with discriminatory or sexually oriented talk, innuendo, insults, or abuse not relevant to the subject matter of the job. A hostile environment can arise from an unwarranted focus on sexual topics or sexually suggestive statements. An environment may be hostile if unwelcome sexual behavior is directed specifically at an individual or if the individual merely witnesses unlawful harassment in his or her immediate surroundings. The determination of whether an environment is hostile is based on the totality of the circumstances, including such factors as the frequency of the conduct, the severity of the conduct, whether the conduct is humiliating or physically threatening, and whether the conduct unreasonably interferes with an individual’s work.

By definition, discriminatory or sexual harassment is not within the course and scope of an individual’s employment with the City.

Sexual harassment, such as unwanted sexual advances, requests for sexual favors, or unwelcome written, verbal, physical and/or visual contact with sexual overtones, when submission to such conduct is explicitly or implicitly a term or condition of an individual’s employment, when submission to or rejection of such conduct by an individual is a basis for employment decisions affecting that individual, or when such conduct has the purpose or effect of reasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive work environment.

4. “Retaliation” includes any adverse action taken against an employee they have reported harassment and/or discrimination, has participated in the complaint and/or investigation process regarding such a complaint, and/or has engaged in protected activity under the Affordable Care Act, including but not limited to making internal or external complaints regarding alleged Affordable Care Act violations and participating in the investigation of or proceedings regarding such complaints. “Adverse action” includes but is not limited to: (a) taking sides because an individual has reported harassment and/or discrimination; (b) spreading rumors about a complainant; (c) shunning and/or avoiding an individual who reports harassment and/or discrimination; or (d) a direct or implied threat of intimidation to prevent an individual form reporting harassment or discrimination.
5) Responsibility:

Directors, managers, supervisors, and other City management personnel are responsible Exhibit "A" Page 183 of 434
16 for compliance with this Section and each of the following:

1. Informing employees and non‐employees of this Section.

2. Modeling appropriate behavior.

3. Taking reasonable steps to prevent harassment, discrimination, and retaliation from occurring.

4. Receiving complaints in a fair and serious manner, and documenting steps taken to resolve complaints.

5. Monitoring the work environment and taking immediate appropriate action to stop potential violations, such as removing inappropriate pictures or correcting inappropriate language.

6. Following up with employees who have complained to ensure that the behavior has stopped and that there are no reprisals.

7. Informing employees who complain of harassment and/or discrimination of their option to contact the Equal Employment Opportunity Commission or Department of Fair Employment and Housing regarding alleged violations.

8. Assisting, advising, or consulting with Human Resources or employees of other City department(s) regarding this Section.

9. Assisting in the investigation of complaints involving employee(s), and, if the complaint is substantiated, recommending appropriate corrective or disciplinary action in accordance with the City’s Personnel Rules, up to and including dismissal.

10. Implementing appropriate disciplinary and remedial actions.

11. Reporting potential violations of this Article of which they became aware, regardless of whether a complaint has been submitted to any City department or management personnel.

12. Participating in periodic training and scheduling employees for training.

Supervisory personnel who are aware of ongoing harassment, discrimination and/or retaliation, as defined in this Section, but do not take responsible, appropriate steps, as set forth above, shall be subject to appropriate disciplinary action, up to and including dismissal.

All employees are responsible for compliance with this Section and for each of the following:

1. Treating all employees and non‐employees with respect and consideration.

2. Modeling appropriate behavior.

3. Participating in periodic training.

4. Cooperating with the City’s investigation by responding fully and truthfully to all questions posed during the investigation.

5. Maintaining the confidentiality of any investigation that the City conducts by not disclosing the substance of any investigatory interview, except as directed by the department director or Human Resources.

6. Reporting any act they believe in good faith constitutes harassment, discrimination and/or retaliation as provided for in this Section.

While the City vigorously defends an employee’s right to work in an environment free of harassment and discrimination based on his or her protected class, and free of retaliation, the City also recognizes that false accusations can have serious consequences. Accordingly, any employee who is found, through the City’s investigation, to have knowingly and falsely accused another person of harassment, discrimination and/or retaliation will be subject to appropriate disciplinary action, up to and including dismissal.
6) Complaint Procedure:

An employee or job applicant who believes they have been discriminated against and/or harassed based on his or her protected class, or retaliated against for making a Exhibit "A" Page 184 of 434
17 complaint and/or engaging in protected activity, may make a complaint, orally or in writing, to any of the following individuals:

1. Immediate supervisor.

2. Any supervisor or manager within or outside the department.

3. Department director.

4. City Manager or designated representative.

5. Human Resources, or

6. City Clerk, for complaints against the City Manager. The City Clerk shall then report the complaint to the City Council and the City Attorney.

Any supervisor, manager or director who receives a harassment, discrimination and/or retaliation complaint shall immediately notify the City Manager.

Employees, contractors, or applicants for employment may file complaints of harassment, discrimination, or retaliation with the California Department of Fair Employment and Housing (DFEH), the U.S. Equal Employment Opportunity Commission (EEOC), or, for whistleblower complaints alleging retaliation for engaging in protected activity under the Affordable Care Act, the California Occupational Safety and Health Administration (“Cal‐OSHA”). These administrative agencies offer legal remedies and a complaint process.

F. Anti-Bullying Policy:
1) Policy Statement:

The City is committed to providing a safe work environment. All City employees, consultants, independent contractors, and visitors have the right to be treated with respect. This policy applies to all City employees, consultants, and independent contractors, and will comply with the requirements of the Fair Employment & Housing Act, and the anti‐bullying mandates of the Department of Fair Employment and Housing.

The City considers workplace bullying unacceptable and will not tolerate it under any circumstances. The City defines bullying as persistent, malicious, unwelcome, severe and/or pervasive mistreatment that harms, intimidates, offends, degrades or humiliates an employee, whether verbal, physical or otherwise, at the place of work and/or in the course of employment.
2) Definitions
Bullying comes in many shapes and sizes. The City considers the following types of behavior to constitute examples of workplace bullying:
• Staring, glaring or other nonverbal demonstrations of hostility. • Exclusion or social isolation.
• Excessive monitoring or micro‐managing.
• Work‐related harassment, including work overload, unrealistic deadlines, and meaningless tasks.
• Being held to a different standard than the rest of the employee’s work group. • Consistent ignoring or interrupting of an employee in front of co‐workers. • Personal attacks, including angry outbursts, excessive profanity, or name‐calling. • Encouragement of others to turn against the targeted employee. • Sabotage of a co‐worker’s work product or undermining of an employee’s work performance.
• Stalking.
• Unwelcome touching.
• Invasion of another’s personal space.
• Unreasonable interference with an employee’s ability to do his/her work (i.e., Exhibit "A" Page 185 of 434
18 overloading with emails).
• Repeated infliction of verbal abuse, such as the use of derogatory remarks, insults, and epithets.
• Conduct a reasonable person would find hostile, offensive, and unrelated to the employer’s legitimate business interests.

Such conduct may be perpetrated directly or via the use of telephonic or electronic communications, the internet, email, chatroom misuse, mobile threats by text messaging, or cameras and video equipment.
3) Complaint and Reporting Procedure
The City encourages all employees to immediately report any instance of workplace bullying to their supervisor, Human Resources, and/or the City Manager. In addition, any employee who believes they have witnessed bullying, and any person who has received a report of such conduct, whether the perpetrator is an employee or a non‐employee, should immediately report the conduct to theirsupervisor, Human Resources, and/or the City Manager. City policy requires any supervisor who witnesses any bullying, irrespective of the reporting relationship, to immediately report it to Human Resources.

Early reporting and intervention have proven to be the most effective method ofresolving actual or perceived incidents of bullying.

Any report of this type will be treated seriously and will be investigated promptly and impartially. The City further encourages all employees to formally report any concerns of assault, battery or other bullying behavior of a criminal nature to the local Police Department.

The availability of this complaint procedure does not preclude individuals who believe they are being subjected to bullying conduct from promptly advising the offender that their behavior is unwelcome and requesting that such behavior immediately stop.

The City will make every effort to stop alleged workplace bullying before it becomes severe and pervasive but can only do so with the cooperation of its employees. All employees have a duty to cooperate in connection with any City investigation into allegations of bullying.

Any employee against whom an allegation of bullying is made will be afforded due process before any disciplinary action is taken. Employees who are determined to have violated this policy will be subject to disciplinary action, up to and including termination. 4) No Retaliation
No employee will be subject to any form of retaliation for reporting a bullying incident, or for participating in an investigation into allegations of bullying by the City or its representatives.

G. Discrimination and Harassment Complaint Procedure
1) Filing a Discrimination Complaint
The complaint process is designed to administratively resolve complaints in a timely manner, ensure that appropriate action is taken, and minimize financial impact to the City and the employee. An individual may file a complaint with their supervisor, department head or the City Manager.

Exhibit "A" Page 186 of 434
19 2) Complaint Procedures
It is the City’s intent to provide a workplace that is free from harassment, discrimination, and retaliation. If an employee believes they have been subjected to any type of unlawful harassment, discrimination, or retaliation, they should notify his/her supervisor, department head or the City Manager.

Under no circumstances shall an employee who believes they have been the victim of discriminatory or sexual harassment be required to first report that harassment to a supervisor or other authority figure if that person or authority figure is the subject of the complaint or has failed to remedy the known harassment.

All persons shall report to their supervisor, manager, department head or Personnel Director any instances of discriminatory or sexual harassment that they have directly observed, whether or not reported by the employee who is the object of the harassment. Employees are expected to use their best judgment to forward the purpose stated in this Policy when defining discriminatory or sexual harassment.

3) Investigation
A prompt and thorough investigation into the allegations will be conducted. Individuals with direct information pertaining to the complaint will be interviewed. To the extent possible, confidentiality will be maintained. Upon completion of the investigation, the City will determine a course of action, if appropriate. The complainant will be informed of the findings and the closure of the complaint.
4) Reporting Harassment, Discrimination and Retaliation Complaints At any time during this process, the employee may elect to file a complaint with the outside regulatory agencies, either the California Department of Fair Employment or the U.S. Equal Employment Opportunity Commission.
5) Records
Related records will be maintained as required by state and federal law.

H. Anti-Nepotism
1) Policy Statement
Consistent with the terms of the applicable MOU, it is the policy of the City that no person shall be hired, and no employee shall be appointed, promoted or transferred to a position in any department in which such employee’s relative already holds a position, when such employment would result in any of the following:
(1) A supervisor‐subordinate relationship.
(2) The employee’s job duties will require performance of shared duties on the same or related work assignment.
(3) Both employees will have the same immediate supervisor.

The City also retains the right to refuse to place both relatives in the same department, division or facility where such has the potential for creating adverse impact on supervision, safety, security, morale or involves potential conflict of interest. 2) Application
This prohibition shall apply to all full‐time employees, parttime and temporary employees, and all employees working for the City through a temporary employment agency. This policy will not prevent relatives from being regularly assigned to shifts that may overlap, or from short‐term, temporary, or acting assignments, as long as one relative does not supervise, directly or indirectly, another relative, nor work in a capacity which would require an employee to evaluate or control Exhibit "A" Page 187 of 434
20 the terms, conditions and performance of a relative.

Relatives of City officers, employees or members of the City Council, or any City Board or Commission shall not be employed in any position in which the employment of such relative has the potential for adversely impacting the safety, security, morale or efficiency of supervision of other employees, or in which there may be created an actual or potential conflict of interest or the appearance of a conflict of interest.
3) Definitions
A “relative” may be defined as a spouse, child, stepchild, sibling, parent, grandparent, grandchild, niece, nephew, aunt, uncle, parent‐in‐law or sibling‐in law. Half‐relatives, step‐relatives, adopted relatives, domestic partners and in‐laws are included in these restrictions. 4) Procedures
In cases where an employee may marry or acquire a covered relationship with another person employed by the City, both employees shall be allowed to retain their respective positions provided that a supervisory relationship does not exist between the two employees. For the purpose of this section, a supervisory relationship shall be defined as one in which one person exercises the right to control, direct, reward or punish another person by virtue of the duties and responsibilities assigned to their position.

I. Fraternization
1) Policy Statement
In a workforce as diverse as the City’s, it is not uncommon for employees to date, or develop significant relationships and live with, other employees. However, conflicts of interest may arise in connection with consensual romantic and/or sexual relationships between the City’s managers/supervisors and their subordinates or other employees. Such relationships may: (i) compromise, or appear to compromise, the integrity of supervisory authority; (ii) cause actual or perceived partiality, bias, or unfairness; (iii) involve, or appear to involve, the improper use of such relationships for personal gain; (iv) be, or are perceived to be, exploitative or coercive in nature; and/or (v) create an actual or perceived adverse impact on workplace discipline, authority, morale, and productivity. The city desires to avoid these problems as well as other misunderstandings, complaints of favoritism, potential sexual harassment claims, and any other employee morale and dissension problems that may result from certain consensual romantic and/or sexual relationships between City manager/supervisors and their subordinates or other non‐manager/supervisor employees.
2) Application
Accordingly, City policy and more general ethical principles prohibit City managers/supervisors from fraternizing or becoming romantically involved with any non‐manager/supervisor employee of the City if the managers/supervisors either (1) supervise that employee; or (2) make employment‐related decisions or recommendations for raises, promotions, discipline, assignments, or transfers for the employee.

If a manager or supervisor violates this policy, the City may, at its sole discretion, reassign such manager or supervisor to a different department and discipline such manager or supervisor, including, but not limited to, termination of employment.

J. Conflict of Interest
1) Policy Statement
No employee shall engage in any business transaction or shall have a financial interest, direct or indirect, which is incompatible with the proper discharge of their official duties in the public Exhibit "A" Page 188 of 434
21 interest or would tend to impair their independence of judgment or action in the performance of their official duties. The City Manager shall determine and prescribe those activities which, for employees under their jurisdiction, will be considered inconsistent, incompatible or in conflict with their duties as City employees. In making this determination, the City Manager shall give consideration to employment, activity or enterprise which:

1. Involves the use for private gain or advantage of City time, facilities, equipment and supplies, or the badge, uniform, prestige or influence of the City’s office or employment.

2. Involves the soliciting or acceptance by the employee of any money, gift, gratuity or other consideration from anyone other than the city for performing an act which the employee would be required or expected to perform in the regular course of their City employment.

3. Involves the performance of an act in other than their capacity as a city employee which may later be subject, directly or indirectly, to the control, inspection, review, audit or enforcement by such employee or the department by which they are employed.

Each City employee shall, during their hours of duty as a City employee, and subject to such rules and regulations as pertain thereto, devote their full time, attention and efforts to this City employment. Each City employee shall cooperate with the City Council and the City Manager to successfully fulfil the objectives and purposes of this Policy. 2) Political Activity
The political activities of all City employees shall be governed by the applicable provisions of State and Federal law.

K. Attendance
1) Policy Statement
Any unauthorized absence may be cause for disciplinary action, up to and including dismissal from employment. Authorized absence is defined as permission to be absent from duty for a specified purpose, with the right to return before or upon the expiration of the leave period.

Employees shall report to work in accordance with the rules regarding hours of work, leave and related provisions unless their absence has been authorized. Department directors shall be responsible for maintaining employee attendance records that shall be transmitted to the payroll office on standardized forms and at times specified by Human Resources and/or the City Manager or designee.

Except in extraordinary circumstances, an employee who is unable to report for work at the beginning of his/her established shift, shall notify his/her immediate supervisor no later than one hour before commencement of such shift, or earlier if required by department procedures. Failure to provide such notification shall result in the unreported period of absence for the first day being considered as leave without pay.
2) Absences Due to Personal Illness or Injury
Sick leave with pay shall not be considered as a privilege which an employee may use at his/her discretion but shall only be allowed for any full‐time employee who is incapacitated from the performance of his/her duties by illness or injury, by pregnancy, or by public health requirements, such as possible infection with tuberculosis, chicken pox, and the measles. Each regular full‐time employee shall earn paid sick leave as defined by the relevant Memorandum of Understanding or salary resolution. In order to receive compensation while absent due to personal illness or injury, the employee shall notify their immediate supervisor or department director no later than one (1) hour before the time set for beginning their regular duties, or as otherwise determined by individual department policies and procedures. If the need for time off due to personal illness or injury is foreseeable and/or for scheduled appointments, employees shall notify their supervisor Exhibit "A" Page 189 of 434
22 prior to the scheduled time off and accommodate scheduled appointments so as not to cause hardship on City operations.

In all cases, absences due to illness or injury for three (3) or more days shall require a doctor's release.

An employee may be required to provide a doctor’s release to return to work following an illness or injury resulting in the inability to perform their assigned duties. 3) Workers’ Compensation
An employee who is receiving temporary disability payments under the workers’ compensation laws may use his/her accumulated sick leave to supplement any of these payments. Under the terms of this paragraph, the City will apply only that portion of the sick leave that is necessary that when added to the disability will equal the full pay rate until the accumulated sick leave is exhausted. In such case, leave accruals shall be prorated and payment of health insurance premiums may be required pursuant to the requirements of the applicable Memorandum of Understanding or salary resolution.
4) Time Off to Care for Immediate Family Member
An employee is entitled to use up to half of their annual sick leave accrual for the purposes of caring for an immediate family member and immediate relative who is ill. An immediate family member, for the purposes of this provision, is defined as a spouse, domestic partner, child, parent, grandparent, grandchild, sibling, and any individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.

In the event that a conflict arises between this article and federal and/or state law or regulations, the federal and/or state law and regulations will prevail.

L. Violence in the Workplace
1) Policy Statement
The City is committed to providing a safe work environment that is free of violence or the threat of violence. Threats, threatening behavior, or acts of violence against employees, visitors, or other individuals by anyone on City property will not be tolerated. Violations of this policy by City employees will lead to disciplinary action, up to and including termination, and may include arrest and prosecution. Violations by non‐City employees may result in arrest and prosecution as well. 2) Procedures

1. Emergency Incidents
Any employee who is subjected to, witnesses, or has knowledge of actions which pose immediate danger to themselves, or others must report these acts to appropriate authorities at once. When the incident constitutes an emergency, the employee should notify their supervisor and/or obtain Police assistance by calling 911. Information provided to the emergency dispatcher should include details regarding the location, nature of the incident and the persons and/or weapons involved.

After the incident has been reported to the Police, the employee should notify their supervisor and/or the department head of the incident and file a report with the risk manager. The department head, in turn, shall be responsible for contacting the City Manager.

The primary objective in dealing with an incident in‐progress is to stabilize the situation, de‐escalate the potential for violence, and ensure that there is no harm to person or property. Once the emergency has passed, the department head shall be responsible for Exhibit "A" Page 190 of 434
23 conducting a thorough investigation of the incident, and reporting findings to the City Manager and to file an incident report with the risk manager.

2. Natural, Man-made or War‐Caused Emergencies
The State of California Disaster Service Worker (“DSW”) Program includes all public employees impressed into service by a person having authority to command the aid of citizens in the execution of their duties during a state of war, a state of emergency, or a local emergency. As public employees, City employees are DSWs. Examples of emergencies for which City employees may be called upon to help as DSWs include fire, flood, earthquake, or public health emergencies
In the event of a natural, manmade or war‐caused emergency that results in conditions of disaster or extreme peril to life, property and the resources of the state, City employees shall be subject to be called back to work to assist the City in addressing such emergency.

The determination on whether to call an employee back to work shall be solely determined by the City Manager, Director of Civil Defense or Disaster or designee.

3. Non‐Emergency Incidents
When an employee becomes aware of a potential violation of this policy that does not pose an immediate threat of violence, they are responsible for notifying their department head and for reporting the incident to the risk manager. Even without an actual threat, employees should also report any behavior which they may regard as threatening or violent when the behavior is job‐related or might be carried out on City property or at a City facility. It will then become the responsibility of the department head to investigate the incident and to file an incident report with the risk manager.

The situation will be evaluated to determine whether there was a violation of the policy and what the appropriate management response should be. No employee who, acting in good faith, initiates a complaint or reports an incident under this policy will be subject to retaliation or harassment. Any employee reported to be in violation of this policy will be entitled to due process.
3) Definitions
For the purposes of this policy, threats and violent behavior are defined as:

1. The actual or implied threat of harm to an individual, group of individuals, or relatives of those individuals. These threats may be made in person, over the telephone, through the mail or by electronic communication.

2. The possession, on City property, of weapons of any kind, unless specifically authorized by the Police Department or the City Manager, or the brandishing of any object, that could reasonably be construed as a weapon.

3. Loud, disruptive, or angry behavior or language that is clearly not part of the work environment.

4. Blatant or intentional disregard for the safety and/or well‐being of others.

5. Willful destruction of City or personal property.

6. Commission of a violent felony or misdemeanor on City property.

7. Any other act that a reasonable person would perceive as constituting a threat of Exhibit "A" Page 191 of 434
24 violence.

M. Drug and Alcohol Policy
1) Policy Statement
It is the policy of the City of Bell to provide a healthy and safe work environment free from problems related to alcohol, illegal drugs, or any other substance that would interfere with the employee's safe and effective job performance. While the City has no intention of intruding into the private lives of its employees, involvement with drugs and alcohol off the job can take its toll on performance and employee safety. The City requires that employees be able to perform their jobs safely and efficiently so as not to jeopardize the safety of themselves, their co‐workers or the public. The presence of alcohol and illegal drugs on the job, and the influence of these substances on employees during working hours, is inconsistent with this objective.

Employees who believe they may have an alcohol or drug problem are urged to voluntarily seek assistance from their physician. While the City will be supportive of those who seek help voluntarily, the City will be equally firm in identifying and disciplining those employees who refuse treatment for such usage. Alcohol and drug abuse on the job will not be tolerated. All persons covered by this policy should be aware that violations of this policy may result in discipline, up to and including termination.
2) Procedures

1. All employees shall comply with the following conditions of employment:
a. Employees shall not consume alcohol, be under the influence of alcohol, or possess an open container of alcohol, or unlawfully manufacture, distribute, dispense, possess, or use illegal drugs while at City work locations or elsewhere during work hours, during meal and rest periods, while in or operating City vehicles or equipment, while wearing clothing which identifies the individual as a City employee, while foreseeably subject to being called to duty, or at any time which would interfere with the employee's safe and effective job performance. Exceptions pertaining to alcohol may be allowed while performing an approved police task.
b. Employees shall notify their supervisor before beginning work when using, before or during work, drugs, medications, or any other substance which the employee believes could foreseeably interfere with the employee's safe and effective job performance or operation of City vehicles or equipment.
c. While the use of medically prescribed medications is not a per se violation of this policy, failure by the employee to notify their supervisor, before beginning work, that they are taking medication that could interfere with theirsafety and effective performance of their duties or the operation of City equipment may result in discipline, up to and including termination. In the event there is a question as to whether an employee can safely and effectively perform their assigned job duties while using such medication, the City reserves the right to obtain a fitness‐for‐duty certification from a health care professional. d. Employees may be required to take a drug and/or alcohol test if there is a reasonable suspicion of violation of this policy.
e. Employees who are convicted of any violation of a criminal drug law occurring in the workplace must notify their department head within five (5) calendar days of such conviction.
f. Employees who enter City work locations shall be subject to inspections, searches, and Exhibit "A" Page 192 of 434
25 seizures, as allowed by law, when there is a reasonable suspicion that this Alcohol and Drug Use policy has been violated.
g. Refusal to submit immediately to a drug or alcohol test when requested by City management based on reasonable suspicion, or by law enforcement personnel, may constitute insubordination and may be grounds for discipline, up to and including termination.
h. Employees the City reasonably believes are under the influence of alcohol or drugs shall be prevented from engaging in further work, shall not be permitted to drive, and may be detained for a reasonable time until they can be safely transported from the work site. i. Employees may be required by their department head to comply with additional terms and conditions of employment not specifically stated above, in accordance with federal, state and City laws, regulations and procedures.
j. The City is committed to providing reasonable accommodation to those employees whose alcohol or drug problem renders them a qualified individual with a disability pursuant to Federal and/or State law.

2. Exceptions to Policy
Employees shall not be in violation of this policy for consuming or possessing an open container of alcohol while performing an approved police task (e.g. vice detail).

3. Violation of Policy
Employees who are in violation of this policy and any of the provisions listed under Section 3.16 shall be required to satisfactorily complete an Employee Assistance Program (“EAP”) along with the substance abuse program (“SAP”). In addition, depending upon the circumstances and the severity of the incident, they may be subject to disciplinary action, up to and including termination from employment.

4. Employee Notification
a. All current employees shall receive a copy of the City's Policy Statement and Conditions of Employment located in the appendix. b. All newly hired employees shall receive a copy of the City's Policy Statement and Conditions of Employment during the new employee orientation process. c. All employees are requested to sign that they have received, read, understood and will abide by the policy and conditions of employment. If an employee refuses to sign, a witness shall sign that the employee refused and was given a copy. d. The original shall be placed in the employee's personnel file and a copy shall be retained by the employee.

5. Employee Responsibilities
a. An employee must not report to work or be subject to duty while their ability to perform their job duties is impaired due to on or off‐duty alcohol or drug use. b. An employee must not possess or use alcohol or impairing drugs (illegal drugs and prescription drugs without a prescription) during work hours or while subject to duty, on breaks, during meal periods or at any time while on City property.

Exhibit "A" Page 193 of 434
26 c. An employee must not, directly or through a third party, sell or provide alcohol to any person, including any employee, while either employee or both employees are on duty or subject to being called.
d. An employee must submit immediately to an alcohol and/or drug test when requested by a responsible City representative based on a reasonable suspicion that the employee is under the influence of alcohol or drugs.
e. An employee must notify his/her supervisor, before beginning work, when taking any medication or drugs, prescription or non‐prescription, that may interfere with the safe and effective performance of that employee’s job duties or the operation of City equipment.
f. An employee must provide within twenty‐four (24) hours of request a bona fide verification of a current valid prescription for any potentially impairing drug or medication identified when a drug screen/test is positive. The prescription must be in the employee’s name.

6. Management Responsibilities and Guidelines
a. Enforcement – Department heads are responsible for enforcement of these personnel policies and procedures.
b. Notice of Drug Conviction for Federal Grant‐Funded Employees ‐ The employee’s department head shall notify the appropriate federal granting agency within ten days after receiving a drug conviction notice from a federal grant‐funded employee. The convicted employee shall enter the Employee Assistance Program and/or, if appropriate, may be subject to disciplinary action, up to and including termination from employment. This personnel action must be taken within thirty‐days after the City receives the drug conviction notice for a federal grant‐funded employee.
c. Any employee who is determined to be under the influence of alcohol or illegal drugs shall not be permitted to drive.
d. Drug and Alcohol Testing
(1.) Employees may be required to take a drug and/or alcohol test if there is a reasonable suspicion of violation of this policy and any of the conditions of employment. (2.) Before an employee is tested for reasonable suspicion, two managers/supervisors must concur in the decision to test. At least one manager or supervisor must have direct knowledge of the facts used as the basis for the decision to test. Within a reasonable time after the incident, the appropriate department head will provide a report of the facts and/or observed conditions necessitating the drug test. A copy of the report shall be given to the employee upon written request.
(3.) A positive test may result in disciplinary action, up to and including discharge. (4.) If a drug screen is positive at the pre‐employment physical, the applicant must provide within twenty‐four (24) hours of request bona fide verification of a valid current prescription for the drug identified in the drug screen. If the prescription is not in the applicant’s name or the applicant does not provide acceptable verification, or if the drug is one that is likely to impair the applicant’s ability to perform the job, even with accommodations, the applicant may not be hired.

Exhibit "A" Page 194 of 434
27 (5.) If an alcohol or drug test is positive for alcohol or drugs, the City shall conduct an investigation to gather all facts. The decision to discipline or discharge shall be carried out in conformance with applicable Federal and State law, as well as the City’s adopted rules and regulations.
(6.) To arrange for a drug or alcohol test between city office hours., contact Human Resources. If the employee appears to be under the influence of alcohol, the local Police Department should be contacted to request an alcohol breath analysis. (7.) Employees will be afforded the opportunity, prior to testing, to list all prescription and non‐prescription drugs they have used in the last thirty days and to explain the circumstances surrounding the use of such drugs. This information will be kept in the employee's confidential medical file.
(8.) An employee whose drug test results are positive may, within 30 days, submit a written request for a retest of the original sample. The retest will be conducted at the original laboratory or at another NIDA Certified laboratory approved by the City Manager.

The retest will be conducted at the employee's expense. If the results of the retest are not consistent with the original test, the process shall be considered inconclusive and shall not be used as the basis for subsequent action. The employee will be reimbursed for the cost of the retest if the results are negative.

7. Employee Assistance Program (EAP)
Employees may be referred to the EAP by the following two methods:
a. Voluntary Referral ‐ Employees should be encouraged to voluntarily get help in dealing with alcohol or drug related problems through the City's EAP and/or the appropriate health insurance plan. The employee's participation in a voluntary referral shall be held strictly confidential with the EAP staff.
b. Mandatory Referral ‐ Upon approval by the employee's department head, an employee may be required to contact the EAP staff for initial evaluation and intake into the program.

Refer to the discipline procedures on mandatory referrals.

8. Alcohol and Drug Awareness Program
The Employee Assistance Program staff shall conduct an on‐going awareness program to inform employees about the dangers of alcohol and drug use, the City's policy and conditions of employment regarding alcohol and drug use, any available alcohol and drug counseling, rehabilitation, or employee assistance programs, and the penalties that may be imposed upon employees who violate the policy and conditions of employment regarding alcohol and drug use.

9. Confidentiality
Laboratory or test results shall not appear in an employee’s general personnel folder.

Information of this nature shall be contained in a separate confidential medical file that will be kept securely under the control of the Human Resources/City Manager or designee. The reports or test result may be disclosed to City management on a strictly need‐to‐know basis and to the tested employee upon request. Disclosure, without patient consent, may occur when:
a. The information is compelled by law or by judicial or administrative process. b. The information has been placed at issue in a formal dispute between the employer Exhibit "A" Page 195 of 434
28 and employee.
c. The information is to be used in administering an employee benefit plan. d. The information is needed by medical personnel for the diagnosis or treatment of the patient who is unable to authorize disclosure.
3)Definitions

1. Alcohol ‐ means any alcohol or alcoholic beverage as defined in California Business and Professional Code Sections 23003 and 23004.

2. Conviction for a Criminal Drug Law Violation ‐ means a finding of guilt, a no contest plea, or an imposition of sentence by any judicial body for any violation of a criminal statute involving the manufacture, distribution, dispensation, possession, or use of any controlled substance.

3. During Work Hours ‐ means during all compensated work time.

4. Foreseeably Interfere ‐ means when any reasonable person should have known that using a drug, medication, alcohol, or any other substance could cause drowsiness, potentially hazardous side effects, or have mind- and mood-altering properties which could interfere with the employee's safe and effective job performance or operation of City vehicles or equipment.

5. Foreseeably Subject to Being Called to Duty ‐ means when an employee has been placed on "standby" status, or placed "on call" to appear in court, or given notice to return to work the same day.

6. Illegal Drug ‐ means any controlled substance, drug, narcotic or immediate precursor which is specified or referenced in any provision of the California Uniform Controlled Substance Act (Division 10 of the Health and Safety Code) which may subject an individual to criminal penalties, or a legal drug which has not been legally obtained or is being used by an individual for whom it was not prescribed, or is not being used in a manner, combination, or quantity for which it was manufactured, prescribed, or intended.

7. Reasonable Suspicion ‐ means a suspicion based on objective facts and reasonable inference drawn from those facts, that an employee is under the influence of drugs and/or alcohol so that the employee's ability to perform the functions of the job is impaired or so that the employee's ability to safely perform his/her job is reduced. Examples include, but are not limited to:
a. Slurred speech, bloodshot eyes;
b. Odor of intoxicants on breath or clothing;
c. Unsteady standing, walking, or movement;
d. Increased absenteeism, especially surrounding days off or holidays; e. Substandard performance whether in quantity or quality that cannot be otherwise explained;
f. General unhappiness, mood swings, increased inattentiveness, changes in appearance; g. Physical altercation;
h. Verbal altercation;
i. A preventable accident generally of a reckless nature involving City property; j. Information from a reliable person with personal knowledge of the drug/alcohol use; k. Actual observation of the possession or use of alcohol or drugs.

8. Workplace ‐ means at City work locations or elsewhere during work hours, or while in or operating City vehicles or equipment.

Exhibit "A" Page 196 of 434
29 SECTION 5: Authority to Interpret
The City Manager is authorized to issue written guidelines to implement and enforce this resolution, and to make adjustments to avoid or eliminate inequities resulting from its application. Such guidelines shall have the City’s best interests as their paramount concern and shall be consistent with applicable state and federal guidelines.

SECTION 6: Delegation of Authority
The City Manager may delegate any of the powers and duties conferred upon them to any other officer or employee of the City or may recommend that such powers and duties shall be performed under contract.

SECTION 7: Classification Plan
The Classification Plan includes the allocation of class titles to salary ranges for City officers and employees under one Plan in which all positions substantially similar with respect to duties, authority, responsibility and working conditions are included within the same class, and that the same schedules of compensation be made to apply with equity under the working conditions to all positions in the same class.

A. Preparation of Classification Plan
Human Resources shall ascertain and record the duties and responsibilities of all positions in the competitive service and, after consultation with appointing authorities and heads of departments affected, shall recommend a classification plan for the positions. The classification plan shall contain a compilation of classes of positions in the competitive service defined by class specifications, including title, a description of typical duties and responsibilities of positions in each class, a statement of the training, experience and other qualifications to be required of applicants for positions in each class. Class specifications are explanatory, but not restricting. The listing of particular tasks shall not preclude the assignment of other related kinds of tasks, or jobs requiring lesser skills.

B. Allocation of Positions
The classification plan shall be so developed and maintained that all positions substantially similar with respect to duties, authority, character of work, and qualifications, are included within the same class, and that the same schedules of compensation may be made to apply with equity under like working conditions to all positions in the same class.

When a new position is created, before the same may be filled, and, except as otherwise provided by ordinance or these rules, no person shall be appointed or employed to fill any such position until the classification plan shall have been amended to provide therefor and an appropriate eligible list has been established for such position.

Positions, the duties of which have changed materially so as to necessitate reclassification, shall be allocated to a more appropriate class, whether new or already created, in the same manner as originally classified and allocated. Reclassifications shall not be used for the purpose of avoiding restrictions surrounding demotions and promotions.

In the preparation of the classification plan, Human Resources shall allocate every position in the competitive service to one of the classes established by the plan.

Exhibit "A" Page 197 of 434
30 C. Adoption of Classification Plan
Before the classification plan or any part thereof shall become effective, it shall first be approved in whole or in part by the City Council. Upon adoption by the Council, by resolution, the provisions of the classification plan shall be observed in the handling of all personnel actions and activities. The classification plan shall be amended or revised as occasion requires in the same manner as originally established.

SECTION 8: Filling Vacancies
A. Types of Appointments
All vacancies, other than temporary or interim vacancies, in the competitive service shall be filled by reinstatement, transfer, demotion, lateral transfer, or from eligible on an appropriate eligible list, if available. In the absence of people eligible for appointment in the above manner, temporary, interim or emergency appointments may be made in accordance with these rules and regulations.

City Managershall determine whether it is desired to fill the vacancy by reinstatement, recall from lay off, transfer, demotion, lateral transfer, or whether certification from an eligible list is preferred.

B. Reinstatement
With the approval of the City Manager, an employee who has resigned with a good record may be reinstated within two years, to their former position, if vacant, or to a vacant position in the same or comparable class, or to a position in a lower classification. A reinstated employee shall serve the probationary period prescribed for that class and for purposes of benefit accrual, begins with new employee status, except that vacation accrual shall be determined by calculating the reinstated employee’s prior service period less the period of time not in the employment of the City. The reinstated employee may be appointed at a higher step than the entry level with the approval of the City Manager.

C. Emergency Appointments
To meet the immediate requirements of an emergency condition, such as fire, flood, earthquake, or other public calamity, which threatens life or property, the appointing authority may employ such persons as may be needed for the duration of the emergency without regard to the personnel rules affecting appointments. As soon as possible, such appointments shall be reported to the City Manager.

No emergency appointment shall exceed sixty (60) working days, nor shall an individual hold successive emergency appointment. No position shall be filled by a succession of emergency appointments.

D. Temporary and Interim Appointments
Temporary appointments may be made by the City Manager of persons who appear to possess the minimum standards or qualifications for the position. Such appointments shall not continue for a period in excess of six months in any fiscal year unless approved by the City Manager. Temporary employees shall not be entitled to fringe benefits. No credit shall be allowed upon an application or in the giving of an examination for service rendered under a temporary appointment. However, if a temporary appointment is converted to a probationary appointment without interruption of service, the period of temporary service may be credited towards the completion of the probationary period, but no accrual of sick or annual vacation leave may be allowed for the period of service that the temporary appointee has served and received compensation for as provided in these rules. All temporary appointments must be made within budget limitation. A temporary employee may be removed at any time without the right of Exhibit "A" Page 198 of 434
31 appeal or hearing. Any temporary position which extends beyond the six-month limitation contained in this section shall be an interim position. The interim employee shall have the same rights and obligations as a temporary employee.

SECTION 9: Recruitment
A. Job Announcements
All vacancies to be filled in the competitive service shall be publicized by posting announcements on the City’s official bulletin boards, or in such other places as Human Resources deems advisable. The announcements shall specify the title and pay range of the class for which the examination is announced; the nature of the work to be performed; preparation desirable for the performance of the work of the class; the dates, time, place and manner of making applications; the closing date for receiving application; the minimum requirement for the position; and other pertinent information. Special recruitment methods may be utilized as necessary to ensure that the employment needs of the City are met.

B. Application Forms
Applications shall be made on forms provided by Human Resources. Such forms shall require information covering training, experience, and other pertinent information as deemed necessary by Human Resources. All applications must be signed under penalty of perjury by the person applying.

Applications received at times other than following announcements as set forth above shall be destroyed or returned to the applicant at the discretion of Human Resources.

C. Disqualification
Human Resources shall reject any application which indicated on its face that the applicant does not possess the minimum qualifications required for the position or is not properly completed.

Applications shall also be rejected if the applicant is physically unfit for the performance of duties of the position to which they seeks appointment; is addicted to the habitual use of drugs or intoxicating liquor; has been convicted of a crime which would impede their ability to perform the job for which they is applying; is not legally permitted to work within the United States; has made any false statement of any material fact or practiced or attempted to practice any deception or fraud in their application; or other reasons which would indicate that the applicant is unfit for the position. Whenever an application is rejected, notice of such rejection shall be mailed to the applicant by Human Resources. Defective applications may be returned to the applicant with notice to amend same providing the time limit for receiving applications has not expired.

As part of the review of an application, Human Resources is empowered to obtain summary criminal history information and local summary criminal history information, as defined in Section 11105 and 13300 of the California Penal Code, for the sole purpose of determining whether or not an applicant is addicted to the habitual or excessive use of drugs or intoxicating liquor, or has been convicted of a crime which would impede their ability to perform the job for which they is applying.

D. Physical Requirements
The City requires that all appointees be in such physical or mental condition to perform the duties of their jobs and may require medical or psychological evaluation prior to reporting to work. No person shall be appointed to any position for which they cannot physically or mentally perform all the duties of the job adequately or without hazard to the employee or others. Within the limitations indicated, the Exhibit "A" Page 199 of 434
32 City’s policy shall be to make such efforts as are consistent with the provisions of these rules and regulations to place physically disabled individuals in such positions as are available in the City service where their disabilities will not materially affect their performance of duties.

E. Employment of Members of Family
An applicant may not be denied the right to file an application and to compete in the examination process. Following examination, if the applicant is successfully certified as eligible, they may not be employed in a department or office in which a relative (spouse, child, step-child, parent, stepparent, parent-in-law, legal guardian, brother, sister, step-brother, step-sister, brother-in-law, sister-in-law, aunt, uncle, niece, nephew, grandchild, grandparent or any other individual related by blood or marriage living in the same household as a City employee) is employed if they:
(1) Perform joint duties; or
(2) Share responsibility or authority; or
(3) Report to the same immediate supervisor; or
(4) Would be supervised by or would supervise a relative; or (5) Are related to the cognizant Department Head.

When the eligible is refused appointment by virtue of this Section, the name of the eligible shall remain on the eligibility list for openings in the same classification as otherwise provided in these Rules, where no relative is employed, is supervised, or supervising the vacant position.

Where two relatives are working in the same department at the time of the adoption of these Rules, the employees may continue in their positions so long as their mutual employment causes the City no loss of funds, time, or productivity.

When two employees of the City become married so as to create a situation in which they perform joint duties, share responsibility or authority, report to the same immediate supervisor, or supervise each other, then every attempt will be made to offer a transfer to another department. ln the event a transfer to another department is not accepted and/or unavailable, the employees shall make the decision as to which one shall resign. In the event that neither employee resigns, the least senior employee shall be terminated.

F. Subject and Method of Examinations
Examinations for employment shall be competitive and shall include any technique which, in the opinion of Human Resources, fairly measures the job-related qualification of applicants. These may include written tests, interviews, performance tests, assessment centers, physical ability tests, medical examinations, background investigations, polygraph examinations, prior training, experience and education, or any combination of the above. The City may contract with any competent agency or individual for the performance by such agency or individual of the responsibility for giving or scoring examinations.

G. Qualifying Grade and Rating Examinations
In all examinations the minimum grade or standing for which eligibility may be earned shall be based upon all factors in the examination, including educational requirements, experience, and other qualifying elements as shown in the application of the candidate or other verified information. Failure in one part of the examination may be grounds for declaring the applicant as failing in the entire Exhibit "A" Page 200 of 434
33 examination, or as disqualified for subsequent parts of an examination.

Prior to appointment to a position in the competitive service, a person may be required to pass a medical and/or physical examination to the satisfaction of Human Resources. The scope and type of examination is to be determined by Human Resources. If a person fails to pass such an examination, they may be disqualified from consideration for employment.

SECTION 10: Certification
A. Eligible Lists
Eligibility lists will be established following examinations listing the names of those applicants who qualified in the examination, arranged in alphabetical order. These applicants will be considered qualified for appointment, pending further review by the appointing authority and other qualifying procedures such as background investigations, reference checks, polygraph, and medical examinations. Eligibility lists shall be valid and in effect for a period of one year. An eligibility list may be extended by action of the City Manager for additional six-month periods, but in no event shall a list remain in effect for more than two years. If less than three names of qualified applicants are available for appointment, Human Resources may declare the list invalid and announce a new recruitment and examination period. Names of those not chosen from an eligibility list that is less than one year old may be merged with names on a newly established list for the same classification, but such names shall not remain on the new list for more than twelve months from the date of their original examination.

Names shall be removed from an eligible list for any of the following reasons:
(1) If an eligible requests orally or in writing that their name be removed. (2) If an eligible fails to accept an offer of employment within 10 days following the forwarding of such offer.
(3) If an eligible on a promotional list resigns from the service. (4) If an eligible in a medical examiner’s opinion does not meet the physical, medical or mental parameters established for the position.
(5) If a person on the eligibility list leaves no forwarding address at which they can be contacted by registered mail.
(6) If an eligible is found to be unsuitable for the position by the appointing authority.

B. Notification of Results
Every applicant taking part in the examination process shall be given written notice of the results.

Any applicant shall have the right to review their own test results within five (5) working days after notification of the examination results. An error in rating or grading, called to the attention of Human Resources within one month after the effective date of the eligibility list, shall be corrected. Any correction shall not, however, invalidate certification of an appointment previously made.

If an appointment is to be made from an eligible list, the names of persons willing to accept Exhibit "A" Page 201 of 434
34 appointment shall be certified by Human Resources in the order in which they appear on the list.

Appointments may be made from any person appearing on the eligible list. If sufficient names are not available on the list, then a temporary appointment may be made until eligibles can be certified after appropriate examination. If the temporary appointee takes the examination and successfully passes, they may be reappointed by Human Resources. If the temporary employee does not successfully pass the examination, they shall be replaced by a person appearing on a new eligible list.

Human Resources may certify names from a list for a higher classification in order to fill a vacancy in a lower classification when job duties are of a similar nature. In no case shall names be certified from a list for a lower classification to fill a vacancy in a higher classification.

SECTION 11: Compensation Plan
A. Preparation of Plan
Human Resources shall prepare a compensation plan covering all classes of positions in the competitive service, showing the minimum, all intermediate, and maximum rates of pay. Human Resources shall thereafter make such further studies of the compensation plan as may be requested by the City Council.

Human Resources shall submit the proposed compensation plan to the City Council. The Council shall adopt, or amend and adopt, the proposed plan. Thereafter, no position shall be assigned a salary higher than the maximum or lower than the minimum salary provided for that class of position unless the salary schedule for the class is amended in the same manner as herein provided for its adoption.

B. Salary at Appointment
Except as otherwise provided by this Section, all new employees shall be appointed at the first step of the salary range for the particular class in which the appointment is made. When in the judgement of the City Manager, and with the recommendation of the Department Head, the education, training and experience of a proposed employee are superior and justify a salary in excess of the first step, the City Manager may authorize an appointment to a position at a higher step in the salary range. Initial employment at a salary step other than the first step may also be authorized by the City Manager when a particularly difficult recruiting problem for a class is found to exist.

C. Advancement within Salary Range
Advancement within a salary range shall be authorized only after the affirmative recommendation of the Department Head and with the approval of the City Manager. Such recommendation may be made only on a basis of satisfactory job performance.
a) Management/Confidential Employees (Non-represented)
Management/Confidential employees may receive the same considerations for salary advancement as provided to Miscellaneous Employees, at the City Manager’s discretion. b) Miscellaneous Employees (Cudahy Miscellaneous Employees’ Association) Salary step increases shall be considered on a merit basis only, and at prescribed times as defined in the Personnel Rules and the Cudahy Municipal Employees’ Association MOU.

Any employee receiving a promotion shall receive a salary increase consistent with the Personnel Rules and the Cudahy Municipal Employees’ Association MOU.

Exhibit "A" Page 202 of 434
35 D. Step Advancement
All employees shall be eligible to be advanced through the ten steps in their respective salary schedules.

The City Manager may authorize the advancement of an employee to any of the steps of their allocated salary schedule earlier than would normally be attained if exceptional performance warrants.

The recommendation for such advancement shall normally be initiated by the respective Department Head.

E. Merit Ranges
a) Appointed Officials and Management/Confidential Employees (Non-represented) Appointed City Officials including the City Clerk, City Treasurer and City Manager, as well as nonrepresented Management/Confidential employees who serve in an at-will capacity and are exempt from the classified service, may, subject to the terms and conditions set forth below, be eligible to have their salary increased to a maximum of fifteen percent beyond the regularly assigned top step of their salary range or salary set forth in an existing contract. The City Manager shall have administrative authority to assign, create and maintain the merit range (pay band) to implement the provisions of this Section.

Such increase shall be subject to documentation of the eligible employee’s outstanding performance, based on performance and achievement of previously defined goals. The City Manager shall solely determine placement within the merit range based on the employee’s performance.

Notwithstanding the foregoing, with regard to increases for the City Manager and other Officials appointed by the City Council, the City Council shall determine placement within the merit range based on the employee’s performance, subject to the Appointed Official’s employment agreement, if any.

The continuation of increases pursuant to the provisions of this Section shall not be automatic, and failure to sustain “outstanding performance” shall cause the employee’s pay to revert to the regularly assigned step for his/her classification. An employee who fails to sustain “outstanding performance” shall have their compensation reduced to the “regular range”, in accordance with this section, and at the City Manager’s discretion for Management/Confidential classes, and the City Council’s discretion for Appointed Officials. Salary for Appointed Officials/ Management/Confidential employees who have an employment agreement with the City shall not be modified prior to an amendment to his/her employment agreement unless the agreement permits the increase or decrease to be handled administratively.

The regular salary range shall constitute the regularly defined Steps in the Salary Range (A-J). The “merit range” shall constitute a “pay band” with a minimum rate set one dollar above the maximum of the “regular salary range” and the maximum set at an amount not to exceed fifteen percent beyond the regularly assigned top step of the salary range. The “pay band” shall be added to the Salary Schedule for the assigned non-represented Management/Confidential classifications and Appointed Officials when the increase is recommended by the City Manager or City Council.

In no case shall an employee receive additional merit compensation above the designated “merit range” as defined herein.

Eligibility for additional compensation granted to all employees as part of changes authorized by the City Council shall not be adversely affected by the employee’s status in steps granted beyond the regularly assigned step pursuant to the provisions of this Section. Salaries granted pursuant to this provision shall be reported to PERS as compensation earned.

Notwithstanding the above, provisions of an employment agreement shall supersede and control Exhibit "A" Page 203 of 434
36 over any description of salary that may be contained in these personnel rules. b) Miscellaneous Employees (Cudahy Miscellaneous Employees’ Association) As provided in the Cudahy Miscellaneous Employees’ Association MOU, employees may be eligible for merit longevity compensation as continuing incentive to career employees upon achieving the “J” step and completing ten continuous years of service. Employees may be eligible for a 5% stipend above their base pay rate, and after twenty (20) years, the stipend shall increase to a total of 7.5% above the base pay rate. Such payment shall be granted with the approval of the city Manager to employees who continue to “Exceed Standards” as evidenced by the performance rating of such employee, which is defined as a comprehensive rating at or above the middle column of the current reporting form, or the equivalent rating on any revised reporting form. Merit Longevity may be removed by the City Manager when the employee’s performance does not merit such additional compensation. The provisions of this section shall be administered in accordance with the specific language in the Cudahy Miscellaneous Employees’ Association MOU.

F. Salary on Promotion
An employee who is appointed to a position in a class allocated to a higher salary range than the class in which they formerly occupied a position shall receive the nearest higher monthly salary which is at least five percent higher than their previous base salary but in no case shall they be compensated above the top step of the new salary range unless the City Council grants specific approval. Payment in such new salary range shall commence on the effective date indicated on the City personnel action form. The effective date of the promotion shall be the basis of the employee’s new salary advancement eligibility date.

G. Salary on Transfer
After notice to Human Resources, an employee may be transferred by the Department Head at any time from one position to another position in the same or comparable class.

An employee who is transferred from one position to another in the same class or to another position in a class having the same salary range shall be compensated at the same step in the salary range as they previously received. The employee’s salary advancement eligibility date shall remain the same as it was before transfer.

H. Salary Upon Appointment to a Position in an Acting Capacity Whenever the needs of the City require an employee to temporarily perform the duties of a higher classification than that in which the employee is currently employed for a period of more than thirty (30) consecutive working days, the employee shall receive the salary rate of a higher class in which they are performing the required duties. In such cases, the employee shall be paid at an appropriate step of the salary schedule of the higher classification which will assure an increase of not less than 5% greater than the salary of their current position, but in no case shall such salary exceed the top salary step of the higher classification. The higher salary rate payable shall commence on the thirty-first working day following the temporary reassignment to the performance of duties of the higher classification. The requirement for the performance of duties of the higher classification shall be placed in writing by Human Resources following recommendation by the affected Department Head. No employee shall be required to perform any of the duties of a higher classification unless that employee is deemed to possess the minimum qualification of the higher classification by Human Resources as recommended by the affected Department Head.

Exhibit "A" Page 204 of 434
37 The employee assigned to perform the duties of a higher classification shall not serve for more than ninety (90) working days in a higher classification whenever a vacancy exists (or it is apparent that a vacancy will be present) without the announcement by Human Resources of an approved examination as otherwise provided in these rules and regulations. In no case shall an employee serve more than six (6) months in a higher classification without successfully passing the examination.

A person appointed in an acting capacity shall be eligible to receive merit increases in their permanent position during the acting appointment but shall not be entitled to merit increases in the position which they hold in an acting capacity. If successful in being promoted, the period of time of service in the higher classification shall be credited to the promoted employee toward the required period of probation for the higher classification as otherwise required in these rules.

Human Resources shall obtain the employee’s written consent for the temporary performance of any of the duties of the higher classification beyond a period of thirty (30) working days, prior to an employee assuming or continuing the duties and compensation of a higher classification, which consent shall clearly state that it is understood that a reduction in salary shall be effected to their original salary rate upon the expiration of the need for the performance of the duties of the higher classification. In no instance shall the salary rate of the higher classification extend beyond the six (6) month period as hereinabove set forth, unless otherwise promoted in accordance with these rules and regulations.

I. Salary on Reinstatement
Notwithstanding other provisions of these rules and regulations, a person reinstated (within two years) in A) a position allocated to a class in which they previously held regular status and from which they was separated in good standing or B) a position allocated to a class which is comparable (as determined by the City) to a position in which they previously held regular status and from which they was separated in good standing, may, with the approval of the City Manager and the head of the department in which they would be reinstated, be appointed to the same step of the salary range for the particular class of position as the step which they occupied at the effective date of their resignation. Upon reinstatement, the employee’s salary advancement eligibility date shall be determined as provided in the prior section.

J. Salary on Suspension
An employee who has been suspended without pay from their position shall not receive their salary for the duration of the suspension.

K. Salary on Demotion
The salary of an employee who is demoted to a position in a class allocated to a lower salary range than the class in which they formerly occupied a position shall be determined as follows:
(1) INVOLUNTARY DEMOTION. An employee who is involuntarily demoted to a position in a class allocated to a lower salary range than the class in which they formerly occupied a position shall have their monthly salary reduced to the nearest lower monthly salary rate in the salary range for the class to which they have been demoted. In lieu of a reduction in salary, the City Manager may approve a “Y” rate for the employee. A “Y”rate exists when the employee’s salary is frozen at the present level until such time as subsequent general salary increases catch up or exceed the employee’s salary at the “Y” rate. They shall not be required to serve a probationary period in the lower position unless they have not completed their initial probationary period as required by this section. In such case, they will be required to complete their probationary period in the lower position. The employee shall retain the salary advancement eligibility date they had in the higher position.

Exhibit "A" Page 205 of 434
38 (2) VOLUNTARY DEMOTION. An employee who is demoted at their own request to a position in a class allocated to a lower salary range than the class in which they formerly occupied a position shall have their monthly salary reduced to the nearest lower monthly salary in the salary range for the class to which they have been demoted. In lieu of a reduction in salary, the City Manager may approve a “Y” rate for the employee. A “Y” rate exists when the employee’s salary is frozen at the present level until such time as subsequent general salary increases catch up or exceed the employee’s salary at the “Y” rate. They shall not be required to serve a probationary period in the lower position unless they have not completed their initial probationary period as required by this section. In such case, they will be required to complete their probationary period in the lower position. The employee shall retain the salary advancement eligibility date they had in the higher position.

L. Changes in Salary Allocation
Whenever a classification is reallocated to a new salary range, the salary of any employee in that classification (except an employee in an acting capacity) shall be determined as follows:
(1) ALLOCATION TO A HIGHER SALARY RANGE. If the class is reallocated to a higher salary range, the employee shall be compensated at the step in the new salary range which is most nearly equivalent to what they were receiving in the range to which the class was previously allocated. With the approval of the City Manager, the employee may be compensated at the same step in the new salary range as they were receiving at the range to which the class was previously allocated. The employee’s salary advancement eligibility date shall not change.
(2) ALLOCATION TO A LOWER RANGE. If the class is reallocated to a lower salary range the salary of the employee shall not change unless it is greater than the maximum step of the lower salary range, in which case, it shall be reduced to the maximum step of the new range. In lieu of a reduction in salary, the City Manager may approve a “Y” rate for the employee. A “Y” rate exists when the employee’s salary is frozen at the present level until such time as subsequent general salary increases catch up or exceed the employee’s salary at the “Y” rate. The employee’s salary advancement eligibility date shall not change.

M. Salary on Position Reclassification
The salary of an employee in a position that is reclassified shall be determined as follows:
(1) CLASS WITH SAME SALARY RANGE. If the position is reclassified to a class with the same salary range as the previous class, and if the incumbent is appointed to the reclassified position, the salary rate and the salary advancement eligibility date of the employee shall not change. This provision shall also apply to the change of class title, provided there is no change in the basic duties of the position. (2) CLASS WITH HIGHER SALARY RANGE. If the position is reclassified to a class with a higher salary range than the previous classification, and if the incumbent is appointed to the reclassified position, they shall be compensated at the step in the new salary range which comes nearest to but not less than five percent higher than the step they held in the previous salary range. The salary of the employee service in an acting capacity shall be reestablished based on the provisions concerning appointments to acting positions.
(3) CLASS WITH LOWER SALARY RANGE. If the position is reclassified to a class with a lower salary range than the previous class, and if the incumbent is appointed to the reclassified position, their salary shall not change unless it is greater than the maximum step of the lower salary range, in which case it shall be reduced to the maximum step of the new range. In lieu of a reduction in salary, the City Manager may approve a “Y” rate for the employee. A “Y” rate exists when the employee’s salary is frozen at the present level until such time as subsequent general salary increases catch up or exceed the Exhibit "A" Page 206 of 434
39 employee’s salary at the “Y” rate. The incumbent’s salary anniversary date shall not change. The salary of the employee serving in an acting capacity shall be reestablished based on the provisions concerning appointments to acting positions.

N. Reduction in Salary
An employee who is being paid at a salary step higher than the first step of a salary range may be reduced by one or more steps on the recommendation of the head of the department in which they are employed and with the approval of the City Manager. The effective date of the salary reduction shall be the employee’s new salary advancement eligibility date.

0. Compaction Rule
The top step of the salary range of any Management/Confidential classification shall be a minimum of approximately ten percent above the top step of the closest subordinate classification, with the exception of those Management/Confidential classifications supervising specialized classifications which are highly compensated due to labor market conditions. In the case of highly compensated positions due to labor market conditions, employees may directly supervise a subordinate classification where the maximum salary range exceeds the supervisory class without the minimum of approximately ten percent. Subordinate classification shall be defined as any position classification in which there are employees who are supervised by the Management/Confidential employee.

P. Salaries Above Market Rate- Use of “Y” Rating Method The City Manager has the authority to implement a “Y” rating for employees whose range is found to exceed the market rate based on a salary survey. The employee in this case shall receive no increase in salary unless the maximum salary established by this plan for their classifications exceeds the amount of their "Y" rate.

Q. Trainee Positions
The City Manager has the authority to establish a Trainee class for any class in the system. The salary range for Trainee classes shall be established with a salary range starting fifteen percent (15%) below the first step of the regular position and ending five percent (5%) below the first step of the regular position. Employees who successfully complete the training program and meet the criteria for the higherlevel class, may be reclassified to the higher-level class upon approval by the City Manager.

R. Salary Differentials/ Stipends
The exceptions shall be made to Sections 2 and 3 of this plan as follows:
a. (5%) Salary Differential
After investigation and approval by the City Manager, a 5% Salary Differential shall be assigned to persons found to possess as a regular assignment such additional duties and responsibilities or whose positions entail certain hazards as to warrant additional compensation, which additional salary shall be limited to the following: No current provisions b. (10%) Salary Differential
After investigation and approval by the City Manager, a 10% Salary Differential shall be assigned to persons found to possess as a regular assignment such additional duties and responsibilities or whose positions entail certain hazards as to warrant additional compensation, which additional Exhibit "A" Page 207 of 434
40 salary shall be limited to the following: No current provisions c. Bi-lingual Pay

1. Appointed Officials (Non-represented)
The City Clerk, City Treasurer and City Manager shall be entitled to the same compensation as provided to Management/Confidential employees, which shall be provided as a stipend rather than incorporated into base pay, when the positions have been designated as bi-lingual positions.

Notwithstanding the above, provisions of an employment agreement shall supersede and control over any description of benefits/salary that may be contained in these regulations.

2. Management/Confidential Employees (Non-represented)
Management/Confidential employees shall be entitled to the same compensation as provided to Miscellaneous employees, which shall be provided as a stipend rather than incorporated into base pay, when the positions have been designated as bi-lingual positions.

3. Miscellaneous Employees (Cudahy Miscellaneous Employees’ Association) Approved and certified employees shall be compensated with a bilingual pay stipend in the amount of $75.00 per month for oral translation duties, and $125.00 per month for oral and written translations.

The provisions of this section shall be administered in accordance with the specific language in the Cudahy Miscellaneous Employees’ Association MOU. d. Temporary Upgrade – Acting Capacity

1. Miscellaneous Employees (Cudahy Miscellaneous Employees' Association) An employee who has been designated by the City to serve in an acting capacity for thirty (30) consecutive workdays or more shall receive Step A of the pay range for the classification in which the employee is performing active duties, or a stipend of 5% above the base pay, whichever is greater. Service in an acting capacity shall not be used as a basis for, or in support of, a request for reclassification. The City Manager or designee may determine that a position filled pursuant to an acting assignment shall be filled based on a competitive process to afford an equal opportunity for internal/external candidates. e. Temporary Upgrade – Work Out of Class

1. Miscellaneous Employees (Cudahy Miscellaneous Employees' Association) The City may temporarily assign employees to work out of classification. The selection of employees for an out-of-classification assignment shall be at the discretion of the City Manager or designee. A temporary out-of-class stipend of 5% above the employee’s base pay shall be authorized with advance approval by the Department Head, upon consultation and approval from the City Manager or designee when an employee is designated and scheduled to work in an out- of- class assignment. Paid holidays shall be Exhibit "A" Page 208 of 434
41 considered as days actually worked. Other forms of authorized leave such as sick leave, emergency leave and vacation shall not be considered as days actually worked.

S. Overtime
The City’s pay policy is intended to comply with the salary pay requirements of current State and Federal laws and shall be construed in accordance with these laws and regulations. Further, the City shall administer the pay practices related to overtime consistent with the City’s personnel rules and the Cudahy Miscellaneous Employees’ Association MOU.

Non-exempt employees shall be paid for hours worked in accordance with all legal requirements.

Over- time is calculated at one and one-half (1 ½) times the employee’s regular base rate of pay for all time worked over 40 hours in one workweek. Hours paid that are not actually worked, such as holidays, sick days, and vacation hours do not count as hours worked when calculating weekly overtime.
a. Miscellaneous Employees – (Cudahy Miscellaneous Employee’s Association)

1. For all workweeks in which there is no designated holiday that falls during the workweek or a day in which the employee is sent home due to an unexpected City closure, or by management due to lack of work or an act of God, the employee shall be eligible for overtime pay (time and one half the employee’s regular rate of pay as that term is used in the Fair Labor Standards Act) for time worked over 40 hours per workweek. In a workweek where there is a designated holiday that falls during the workweek or a day in which the employee is sent home due to an unexpected City closure, or by management due to lack of work or an act of God and is thus unable to work their regularly scheduled shift, and the employee has not taken any time off or leave during that same week (e.g. vacation, sick or other personal leave), the employee shall be eligible for overtime pay (time and one half) for time worked beyond the employee’s scheduled shift(s) during that workweek.

2. When an employee is not regularly scheduled to work on Saturdays and Sundays the employee shall receive overtime pay (time and one-half) for all time worked on those days.

When an employee works on a designated City holiday, the employee shall receive overtime pay (double time) for all time worked on the holiday.

Exempt employees are not entitled to receive overtime pay even though they may have to work hours beyond their normal schedule, as work demands require.

T. Compensatory Time Off
a. Miscellaneous Employees – (Cudahy Miscellaneous Employee’s Association) The City’s pay policy is intended to comply with the salary pay requirements of current State and Federal laws, and shall be construed in accordance with these laws and regulations. Further, the City shall administer the pay practices related to Compensatory Time consistent with the City’s personnel rules and the Cudahy Miscellaneous Employees’ Association MOU.

Compensatory time is an alternative method of overtime payment to non-exempt employees. In lieu of paying a non-exempt employee for overtime worked, employees may be granted compensatory time off at the overtime rate of one and one half (1 ½) for each hour of overtime worked. Employees shall have the option of receiving overtime pay for any overtime worked. Use of earned compensatory time off must be approved in advance by the Department Head or designee. The maximum accrual limit is 120 hours.

Exhibit "A" Page 209 of 434
42 U. Executive Leave
Executive leave will be issued to designated executives as determined by the city manager.

Designated employees shall be entitled to take four (4) days (40 hours) of executive leave per fiscal year. The four (4) days (40 hours) may not be carried over to the next fiscal year and their use must have the prior permission of the City Manager. This provision shall be administered in accordance with the City’s Personnel Rules and the Cudahy Miscellaneous Employees’ Association MOU.

V. On Call (Standby) Pay
a. Miscellaneous Employees – (Cudahy Miscellaneous Employee’s Association) An employee who has been instructed by their direct supervisor to stand-by is free to use this time for their own benefit. Employees On-Call (Standby) shall receive two (2) hours of compensatory time for an assigned 24 consecutive hour shift, which will not be counted towards overtime calculations.

The City’s pay policy is intended to comply with the salary pay requirements of current State and Federal laws and shall be construed in accordance with these laws and regulations.

Further, the City shall administer the pay practices related to On-Call (Standby) Pay consistent with the City’s personnel rules and the Cudahy Miscellaneous Employees’ Association MOU.

W. Call Back Pay
a. Miscellaneous Employees – (Cudahy Miscellaneous Employee’s Association) Call back duty occurs when an employee is called back in to work after their regular shift has ended. An employee called back to duty shall be paid a minimum of two (2) hours of compensatory time at a rate equal to time and one-half (1 ½) the regular hourly pay rate, and for actual hours worked at time and one-half the regular hourly pay rate, if hours worked exceeds two (2).

The City’s pay policy is intended to comply with the salary pay requirements of current State and Federal laws and shall be construed in accordance with these laws and regulations.

Further, the City shall administer the pay practices related to Call Back Pay consistent with the City’s personnel rules and the Cudahy Miscellaneous Employees’ Association MOU.

X. Council Authority to Specify Salary
Notwithstanding anything in these rules and regulations to the contrary, the City Council may by resolution, upon recommendation of the City Manager, specify that the incumbent of a particular position shall occupy a step on the salary range for the class either higher or lower than that provided for elsewhere in these rules and regulations.

Y. Additional Compensation
Notwithstanding anything in these rules and regulations to the contrary, when in the judgement of the City Council it becomes necessary or desirable to utilize the service of City employees in capacities other than those for which they are regularly employed, the City Council may, by minute Exhibit "A" Page 210 of 434
43 order, so authorize and fix an additional rate of compensation for such employees, and they shall be paid in accordance with the provisions of these rules and regulations.

SECTION 12: Probationary Period and Performance Evaluations A. Probationary Period
All original and promotional appointments shall be tentative and subject to a probationary period of not less than six (6) months. No employee shall be considered to be on permanent status until after satisfactory completion of the probationary period.

The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employee’s work, for securing the most effective adjustment of a new employee to their position, and for rejecting any probationary employee whose performance does not meet the required standards of work. A Department Head may recommend, and the City Manager may extend an employee’s probationary period by a maximum of four months in two-month increments.

Probationary employees do not have property or vested rights to their position with the City.

During the probationary period an employee may be rejected at any time by the appointing power without cause and without the right of appeal. Notification of rejection in writing shall be served on the probationer and a copy shall be filed with Human Resources.

If the service of the probationary employee has been satisfactory, then the appointing authority shall file with Human Resources a statement to that effect.

Any employee rejected during the probationary period following a promotional appointment shall be reinstated to the position from which they were promoted unless charges are filed, and they are discharged in the manner provided in these rules for positions in the competitive service.

B. Employee Performance Evaluation
A report of performance of each probationary employee shall be made by respective Department Heads or their designees on a form provided by Human Resources. A performance report for regular employees shall be prepared within thirty days prior to the salary advancement eligibility date. In addition, a report may be prepared at any time at the discretion of the employee’s supervisor.

Each performance evaluation shall be thoroughly discussed with the employee to point out areas of successful performance and areas that need improvement. The employee may comment regarding their work performance, either in a written statement attached to the report or orally. The employee shall sign the performance report to acknowledge that they are aware of its contents and have discussed the report with the evaluator. The employee’s signature does not imply that they fully agree with the contents of the report.

Reports shall be prepared with a copy to the employee, the department’s file, and to Human Resources for retention in the employee’s employment history file.

C. Discretionary Medical Evaluation
With the approval of Human Resources, any employee may be required to be medically or psychologically evaluated by an expert designated by the City at any time, for good cause. The City shall bear the expense of such an evaluation. If such a medical or psychological evaluation report concludes Exhibit "A" Page 211 of 434
44 that the employee cannot perform the duties of the employee’s position, the employee may be separated from employment with the City by the department director, with the approval of the appointing power.

A medically evaluated employee shall not return to work without a written authorization from the City’s designated expert.

SECTION 13: Disciplinary and Appeals Procedure
Disciplinary action shall be administered equitably; and to the degree possible, a supervisor should assist the employee in resolving discipline problems through discussion and counseling. The City Manager may review and amend any disciplinary action taken by a Department Head.

A. Basis for Disciplinary Action
The tenure of every City employee shall be based on reasonable standards of personal conduct and job performance. Failure to meet such standards shall be grounds for appropriate disciplinary action, which shall be commensurate with the seriousness of the offense and with due consideration of the employee’s prior performance record. Disciplinary action may be based upon any of the following grounds: failure to properly perform assigned duties; incompetency; inefficiency; neglect of duty reporting to work; being at work under the influence of or in possession of alcohol or nonprescribed controlled substances; unauthorized possession of weapons on City property; disability resulting from other than work—related cause; intemperance; insubordination; unexcused absence; violation of rules, regulations or order established by the City; conviction of a felony; conviction of a misdemeanor relating to the employee’s fitness to perform assigned duties; tardiness; failure to maintain satisfactory working relationships with fellow employees or the public; misuse or abuse of City property or equipment; theft of City property or funds; failure to comply with safety standards; misstatement of a material fact; failure to maintain any employment qualification; failure to comply with safety standards; and other acts which are incompatible with service to the public.

Any violation of these rules may be grounds for rejection, disciplinary action, or dismissal.

B. Disciplinary Authority
The department director shall have the responsibility to institute disciplinary action. In the case of any member of the City Manager’s office, or where the department director fails or refuses to institute appropriate discipline, or if the department directorship is vacant, the City Manager shall, for the purpose of this section, be considered the department director.

C. Emergency Suspension
When a department director determines that an employee’s conduct threatens or has caused injury to persons or property, the department director may impose a suspension with pay against the employee, effective immediately, until a pre-disciplinary conference is conducted pursuant to the personnel rules. The imposition of an emergency suspension against an employee does not preclude the department director from proposing a more severe disciplinary action against such employee receiving an emergency suspension. Within three (3) days of such emergency suspension, the department director shall notify the employee, in writing, of the nature of any proposed disciplinary action, the reason for the disciplinary action, and of any specific charge against the employee, and of the employee’s right to receive copies of the documents and materials upon which the disciplinary action is based, and of the employee’s right to respond to the charge, either orally or in writing. The department head, unless otherwise requested by the employee, shall conduct a disciplinary conference in not less than ten (10) days after the effective date of the emergency suspension.

Exhibit "A" Page 212 of 434
45 D. Types of Discipline
The types of discipline which may be imposed are as follows:
(1) Reprimand (oral or written).
(2) Reduction in salary.
(3) Suspension, with or without pay.
(4) Demotion.
(5) Dismissal.

E. Notice of Discipline
(1) Contents. Prior to imposing any discipline, except reprimands, the Department Head shall notify the employee in writing of the nature of the proposed disciplinary action and its proposed effective date, the reason for the proposed disciplinary action, any specific charges against the employee, the employee’s right to receive copies of the written documents and materials upon which the proposed disciplinary action is based, and the employee’s right to respond to the charge, either orally or in writing. A copy of this notice shall also be forwarded to Human Resources for review and retention in the employee’s personal history file.
(2) Service. This notice shall be given to the employee in person whenever possible and the employee’s signature obtained to indicate receipt. In the absence of personal service, the notice may be sent by registered mail.

F. Representation
If any employee requests or is required to meet with a Department Head and such meeting involves the possible imposition of disciplinary action against the employee, the employee, upon request, shall be entitled to have one representative present at such meeting.

G. Employee’s Response
An employee’s opportunity to respond to the Department Head is not intended to be an adversary hearing. The employee need not be accorded the opportunity to cross—examine a department’s witnesses, nor to present a formal case in opposition to the proposed discipline.

The authority imposing discipline will evaluate the proposed discipline in light of the employee’s response, if any. Within five working days of the employee’s response, or deadline for response, a decision will be transmitted in writing to the employee indicating the personnel action to be taken and, where applicable, advising the employee of their right to appeal.

H. Appeal Procedures
Any permanent employee in the classified service shall have the right to appeal the imposition of disciplinary action, except in those instances where right of appeal is expressly prohibited by the Personnel Resolution.
(1) Request for Disciplinary Hearing. When an employee requests a disciplinary Exhibit "A" Page 213 of 434
46 hearing, the request shall be in writing, signed by the employee or representative, and presented to Human Resources five (5) days after the effective date of the imposition of the disciplinary action. Any such request shall be addressed to Human Resources and shall identify the subject matter of the appeal, the grounds for the appeal, and the relief desired by the employee. All disciplinary hearings shall be conducted in public unless the employee requests, in writing, a private hearing. If the employee fails to request a disciplinary hearing within the prescribed time, the employee shall have waived the right to a hearing and all rights to further appeal of the disciplinary action. (2) Human Resources shall schedule the disciplinary hearing not less than ten (10) days, nor more than thirty (30) days, from the date of the filing of the appeal. All interested parties shall be notified in writing of the date, time, and place of the hearing at least seven (7) calendar days prior to the hearing.
(3) The Mayor, or in their absence, the Mayor Pro Tem, shall issue subpoenas on behalf of the Council. Subpoenas pertaining to a hearing shall be issued at the request of either party prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the Council.
(4) Every hearing shall be presided over by the City Manager or their designee. (5) The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses, but hearings shall be conducted in a manner most conducive to determination of the truth. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. Decisions made by the City Manager shall not be bound by technical rules of evidence. (6) City Manager shall rule on the admission or exclusion of evidence with the assistance of the legal advisor to the City.
(7) Each party shall have these rights: To be represented by legal counsel or other person of his choice; to call and cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her. If the respondent does not testify on their own behalf, they may be called and examined as if under cross-examination.
(8) Oral evidence shall be taken only on oath or affirmation. (9) The hearing shall proceed in the following order, unless the City Manager, for special reason, otherwise directs:
a) The party imposing discipline shall be permitted to make an opening statement;
b) The appealing party shall be permitted to make an opening statement; c) The party imposing disciplinary action shall produce the evidence on their part;
Exhibit "A" Page 214 of 434
47 d) The party appealing from such disciplinary action may then open their defense and offer their evidence in support thereof;
e) The parties may then, in order, respectively, offer rebutting evidence only, unless the City Manager for good reason, permits them to offer evidence upon their original case;
f) Arguments shall be permitted only at the discretion of the City Manager. (10) The City Managershall determine relevancy, weight, and credibility of testimony and evidence. He shall base his findings on the preponderance of evidence. (11) The City Manager may and shall if requested by the disciplinary party or the appealing employee, subpoena witnesses at no loss of compensation to the City employee, and/or require the production of records or other material evidence as authorized by law. (12) During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing, unless the City Manager, at his discretion, for good cause, otherwise directs. (13) No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing.
(14) The costs of a court reporter during the hearing shall be borne equally by the parties.
(15) The City Manager, prior to or during a hearing, may grant a continuance for any reason they believe to be important to their reaching a fair and proper decision. (16) Whether the hearing is held in a public or executive session, City Manager, after they concludes the hearing, may deliberate their decision in executive session. The legal counsel may attend this discussion solely for the purpose of rendering legal advice to the City Manager. (17) The City Manager shall render their judgement as soon after the conclusion of the hearing as possible and in no event later than ten (10) working days after conducting the hearing.

Their decision shall set forth which charges, if any, are sustained and the reasons therefor. (18) The City Manager may sustain or reject any of the charges filed against the employee. They may sustain, reject or modify the disciplinary action invoked against the employee. They may not provide for discipline more stringent than that invoked by the appointing authority. (19) The City Manager order of judgement shall be filed with the City Clerk, the charged employee, and the City Manager, and shall set forth their findings and decisions.

Any member of the Council may submit a minority or supplemental finding and recommendations. If a dismissal is not sustained, their order shall set forth the effective date the employee is to be reinstated, which may be any time on or after the date of disciplinary action. The employee may appeal this decision by filing a written appeal with the City Council within ten (10) days after service of the decision of the City Manager. The appeal shall be addressed to the City Council and shall identify the decision appealed from, the grounds for the appeal, and the relief requested by the employee. All appeal hearings shall be conducted in private unless the employee requests, in writing, a public hearing. The City Council shall schedule and conduct any appeal hearing within a reasonable time after the filing of an appeal.

The City Council shall hear the appeal. Three (3) members of the Council shall constitute Exhibit "A" Page 215 of 434
48 a quorum for the purpose of conducting a hearing on appeal.

At the appeal hearing, they may appear personally and may be represented by counsel or other representative. The employee and the City shall have the right to present oral and written arguments to the City Council.

The decision of the City Council shall be in writing and shall determine whether the decision of the City Manager is supported by substantial evidence. The City Council may affirm, revoke or reduce the decision of the City Manager. The decision of the City Council shall constitute a final resolution.

SECTION 14: Grievance Procedure
A. Statement of Purpose
The purpose and objectives of the Grievance Procedure are to:
(1) Assure fair and equitable treatment of all employees and promote harmonious relations among employees and their supervisors.
(2) Afford employees a written and simple means of obtaining consideration of their grievances by informal means at the supervisory level and review of the supervisor’s decision. (3) Resolve grievances as quickly as possible and correct, if possible, the causes of grievances, thereby reducing the number of grievances and future similar complaints.

B. Definitions
(1) Grievance. A grievance is a formal written allegation by an employee that the grievant has been adversely affected by a violation, misinterpretation, or misapplication on one or more of the specific provisions of the Memorandum of Understanding and/or provisions of these Personnel Rule and Regulations.
(2) Grievant is any permanent employee in the classified service who is covered by a memorandum of understanding.
(3) Day. For purposes of this procedure, a day shall be defined as a calendar day, commencing at 12:01 a.m.
(4) Immediate Supervisor. The immediate supervisor shall be the person having evaluation responsibility for the grievant.

C. Procedure
(1) Informal Resolution. Within ten (10) days after a grievant knew, or by reasonable diligence should have known, of the condition upon which a grievance may be based, the grievant shall attempt to resolve it by an informal conference with the grievant’s immediate supervisor.

Every effort shall be made to resolve a grievance through discussion between the employee and their immediate supervisor. It is the spirit and intent of this procedure that all grievances are settled quietly and fairly without any subsequent discrimination against employees who may seek to adjust a grievance. Every effort should be made to find an acceptable solution at the lowest level of supervision.

Exhibit "A" Page 216 of 434
49 (2) If the problem cannot be resolved between the employee and the supervisor, the employee may, within seven (7) calendar days from the date of receiving the answer from their supervisor, request and be granted an interview with the division head, if one exists, in order to discuss the grievance. (3) If the division head and employee cannot reach a solution to the grievance, the employee may, within seven (7) calendar days from the date of receiving the answer from the division head, request in writing and be granted an interview with the Department Head. (4) The Department Head shall render their decision in writing within fifteen (15) calendar days of receiving the appeal. If the Department Head and employee are unable to arrive at a satisfactory solution, the employee may, within ten (10) calendar days from the date of the decision by the Department Head, submit a written appeal to the City Manager. (5) The City Manager shall review the grievance and respond to the employee within twenty (20) calendar days of receiving the appeal. The response shall be in writing and will be considered an expression of management’s viewpoint and shall be final.

D. Representation
(1) An employee may request representation by the appropriate employee association at any stage of the grievance procedure.
(2) The grievant and designated association representative shall receive release time for the purpose of representing the grievant in conference at any step, but in no way shall release time be granted for purposes of gathering information, interviewing witnesses, or preparing a presentation. (3) Association representation shall be limited to one person and shall not inordinately interfere with the normal course of City business.

E. Class Grievance
(1) Each employee must submit his or her own grievance in writing. At the discretion of the City, individual grievances may be treated as a single grievance or a class. (2) Resolution of a class grievance may not be consistent among all grievants in the class grievance due to differences in the circumstances or occurrences that brought about the grievance.

F. Time Limits
(1) Failure by a grievant to meet a deadline set in this procedure shall terminate the grievance and the grievant shall not have a right to refile on the same set of facts. (2) Failure by the City to meet a deadline shall give the grievant the right to proceed to the next step.
(3) Time limits in this procedure may be extended by mutual agreement between the grievant and the City.

G. Withdrawal
Any grievance may be withdrawn by the grievant at any time in writing. Withdrawal of a grievance Exhibit "A" Page 217 of 434
50 shall be with prejudice and shall remove the right of the grievant to refile on the same set of facts.

SECTION 15: Employee Activities
A. General Consideration
During the employee’s workday, they are expected to devote their full time in the performance of their assigned duties as a City employee.

An employee in the competitive service shall not engage in any employment, activity or enterprise which is inconsistent, incompatible or in conflict with their duties, functions or responsibilities as a City employee, nor shall they engage in any activity which will directly or indirectly contribute to the lessening of their effectiveness as a City employee.

No employee shall engage in any type of activity relating to an employee organization during such time an employee is on duty, except as expressly provided in these rules and regulations.

B. Determination of Inconsistent Activities
In making a determination as to the consistency or inconsistency of outside activities, the appointing authority shall consider, among other pertinent factors, whether the activity:
(1) Involves receipt or acceptance by the employee of any money or other consideration from anyone other than the City for the performance of an act which the employee, if not performing such act, would be required or expected to render in the regular course or hours of their City employment or as a part of their duties as a City employee; or, (2) Involves the performance of an act in other than their capacity as a City employee which act may later be directly or indirectly related to the control, inspection, review, audit or enforcement by such employee or the department by which they are employed; or, (3) Involves conditions or facts which would probably directly or indirectly lessen the efficiency of the employee in their regular City employment, or conditions in which there is a substantial danger of injury or illness to the employee; or,
(4) Involves the use for private gain or advantage of City time, facilities, equipment and supplies, prestige, influence, or confidential information of one’s City office or employment; or, (5) Involves the solicitation of future employment with a business doing business with the City over which the employee has some control or influence in their official capacity at the time of the transaction.

C. Improper Use of City Equipment Prohibited
No City-owned equipment, autos, trucks, instruments, tools, supplies, machine badge, identification cards, or other items which are the property of the City shall be used by an employee except upon prior approval of the appointing authority.

No employee shall allow any unauthorized person to rent, borrow or use any of the items mentioned above unless upon prior approval of the appointing authority.

D. Violations and Penalties
Exhibit "A" Page 218 of 434
51 Any violation of these provisions of the Section respecting such outside employment or activity, or improper use of City equipment, shall constitute grounds for disciplinary action including immediate dismissal of a City employee who commits such violation.

SECTION 16: Layoff Procedure
A. Intent
The layoff procedure is intended to give consideration to both seniority and competency whenever the layoff of employees is necessary.

B. Procedure
(1) Determination of need for layoff will be made by the City. Classifications to be affected and the number of employees included will be determined by the City. (2) If an employee in an affected classification is a probationary appointment, that employee will be selected to be laid off, subject to bumping and reemployment rights. (3) Employees who have successfully completed probation in the affected classification will be ranked by 1) seniority, and 2) competency in the classification.

The Department Head will determine, based upon official personnel records, and/or qualified testing procedures, where applicable, the individual selected for layoff in the classification. The Department Head will utilize a combination of the seniority and competency of the individual in making this determination as set forth in the following example:

Seniority Competency Average
Ranking Ranking Ranking
1 Employee A 2 (3/2) 1-1/2
2 Employee B 3 (5/ 2) 2-1/2
3 Employee C 1 (4/2) 2
Employee B would be the employee selected to be laid off in this classification. If Employee B chooses to bump into a lower classification, they would be given a competency factor equal to the average for the new classification. In the event of equal average ranking scores, competency will be used to determine selection.

C. Bumping Rights
An individual laid off from a particular classification may “bump” into a classification for which they are qualified (qualification is presumed where the person has held the position previously with the City or where a lower position is in a normal line of promotion). After an employee is informed of an impending layoff or “bump down” they must inform Human Resources within five working days of their intent to take the option of the layoff or the “bump down”. The process will be repeated at the next classification level where an employee bumps in and creates an overage in that classification.

D. Reemployment Rights
Exhibit "A" Page 219 of 434
52 The names of probationary and regular employees who have been laid off shall be placed on appropriate reemployment lists in the order of their competency, from highest to lowest. Such names shall remain thereon for a period of one year unless such persons are sooner reemployed.

When a reemployment list is to be used to fill vacancies, Human Resources shall certify from the top of such lists the number of names equal to the number of vacancies. An employee who is reemployed shall receive credit for former service for purposes of seniority, benefit compensation, and salary advancement.

SECTION 17: Loyalty Oath
All employees subject to these rules shall, before they enter upon the duties of their employment, take, and subscribe the oath prescribed in the California Constitution.

SECTION 18: Implementation
These Personnel Rules and Regulations supersede all previous rules and regulations and take effect upon the date of adoption at the City Council.

SECTION 19: Amendment of Rules
Proposed amendments to these Rules shall be submitted to the City Manager for review and recommendation prior to submittal to the City Council. Advance notice shall be given to recognized employee organizations of any amendments which affect wages, hours, and other items and conditions of employment. Upon request, the City Manager shall provide the opportunity to consult with any employee organization so requesting, regarding amendments affecting wages, hours and other terms and conditions of employment. As provided in Section 3500, et. seq. of the Government Code, in cases of emergency, when the City Council determines that amendment(s) to these Rules must be adopted immediately without prior notice or meeting with a recognized employee organization, the City shall provide such notice and opportunity to meet at the earliest practicable time following the adoption of the amendment(s). Amendments shall become effective upon adoption of the City Council or at such other time as the adopting resolution may provide.

SECTION 20: Severability
If any provision, policy, or application of this resolution is held to be invalid, the remainder of this resolution, other than that which was held to be invalid, shall not be affected.

Exhibit "A" Page 220 of 434
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025 Page 1 of 2

STAFF REPORT
Date: June 17, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Brenda Rodriguez, Community Services Director/Acting Human Resources Manager
Subject: Adoption of Proposed Resolution No. 25-34, A Resolution of the City Council of the City of Cudahy Approving the Salary Plan for City Employees

RECOMMENDATION
The City Council is requested to approve Resolution No. 25-34, replacing Resolution No. 24-14, Approving the Salary Plan for City Employees.

BACKGROUND

1. On July 19, 2022, the City Council approved Resolution No. 22-42 updating the consolidated salary schedule for miscellaneous employees.

2. On December 20, 2022, the City Council approved Resolution No. 22-78 updating the consolidated salary schedule for miscellaneous employees.

3. On March 7, 2023, the City Council approved Resolution No. 23-10 approving a separate salary plan.

4. On April 18, 2023, the City Council received MGT Consulting Group’s Final Classification and Compensation study report which recommended job titles, reclassifications, and salary changes.

5. On June 6, 2023, the City Council approved resolution No. 23-25, updating the consolidated salary schedule for all city employees.

6. On June 4, 2024, the City Council approved Resolution No. 24-14 approving the salary plan for all city employees.

Item Number
14C

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025 Page 2 of 2

ANALYSIS
Pursuant to Section 2.04.070 of the Cudahy Municipal Code, the salaries and compensation of City officers and employees must be established by City Council resolution. The proposed Resolution No. 25-34 updates the City's Salary Plan in accordance with this requirement.

This updated salary plan reflects the current classifications and pay ranges used to calculate personnel costs in the FY 2025–2026 proposed budget. While labor negotiations with the Cudahy Miscellaneous Employees Association (CMEA) are ongoing, the current salary schedule remains the official basis for budgeting purposes and aligns with existing classifications and position allocations.

CONCLUSION
Adoption of Resolution No. 25-34 will formally establish the salary plan used to develop the FY 2025–2026.

STRATEGIC PLAN CORRELATION
Not applicable.

FINANCIAL IMPACT
No new financial impact. The attached salary plan was used for calculations of the 2025-2026 fiscal budget presented to the Council.

ATTACHMENTS
A. Proposed Draft Resolution No. 25-34, A Resolution of the City Council of the City of Cudahy Amending the Salary Plan for City Employees

RESOLUTION NO. 25-34

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CUDAHY, CALIFORNIA APRROVING THE SALARY

PLAN FOR CITY EMPLOYEES
WHEREAS, the salaries and compensation of officers and employees of the City of Cudahy (“City”) shall be fixed and determined by resolution of the City Council in accordance with Municipal Code Section 2.04.070; and
WHEREAS, On July 19, 2022, the City Council approved Resolution No. 22-42 updating the consolidated salary schedule for miscellaneous employees; and WHEREAS, On December 20, 2022, the City Council approved Resolution No. 22-78 updating the consolidated salary schedule for miscellaneous employees; and WHEREAS, On March 7, 2023, the City Council approved Resolution No. 23-10 approving a separate salary plan; and
WHEREAS, On April 18, 2023, the City Council received MGT Consulting Group’s Final Classification and Compensation study report which recommended job titles, reclassifications, and salary changes; and
WHEREAS, On June 6, 2023, the City Council approved Resolution No. 23-25 approving a consolidated salary plan for all city employees; and WHEREAS, On June 4, 2024, the City Council approved Resolution No. 24-14 approving a consolidated salary plan for all city employees; and

BASED UPON THE ABOVE RECITALS, THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:

SECTION 1. The recitals set forth above are true and correct and incorporated herein by this reference.

SECTION 2. The City Council hereby approves the amending of the City Salary Plan attached hereto as Exhibit “A” and incorporated herein by reference.

SECTION 3. This Resolution and Exhibit “A” shall repeal and replace Resolution No. 24-14.

SECTION 4. If any part of this Resolution, or the application thereof, is held to be invalid, the remainder of this Resolution shall not be affected thereby, and this Resolution Attachment A Page 223 of 434

shall otherwise continue in full force and effect. To this end, the provisions of this Resolution, and each of them, are severable.

SECTION 5. This Resolution shall take effect immediately following its adoption by the City Council, and the City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 17th day of June 2025.

Elizabeth Alcantar Loza
Mayor
ATTEST:

Richard Iglesias
City Clerk

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 25-34 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17th day of June, 2025, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Richard Iglesias
City Clerk

EXHIBIT “A”

SALARY PLAN

CITY SALARY PLAN
(Exhibit A to Resolution No. 25-34)
Effective July 1, 2025

CITY OF CUDAHY CALIFORNIA
Incorporated November 10, 1960
Exhibit "A" Page 227 of 434
2 Exhibit "A" Page 228 of 434

TABLEOF CONTENTS
THE SALARY PLAN ........................................................................................................................................... 04 Section 1. Purpose.................................................................................................................................... 04 Section 2. Basic Compensation Plan......................................................................................................... 04 Section 3. Pay Philosophy......................................................................................................................... 04 Section 4. Plan Maintenance..................................................................................................................... 05 Section 5. Additional Approved Increases in Compensation and Changes to the Salary and Classification Plans........................................................................................................................................................05 Section6. The Provisions of This Plan Shall Be Operative on the Date of Its Adoption ..............................05 ADDENDUM..................................................................................................................................................06

1. HOURLY RANGE TABLES...........................................................................................................07

2. ASSOCIATION RANGE TABLES ..................................................................................................08

3. MANAGEMENT/CONFIDENTIAL RANGE TABLES ......................................................................09

4. SALARY SCHEDULES .................................................................................................................10 3 Exhibit "A" Page 229 of 434

THE SALARYPLAN
Section1. Purpose
This Exhibit to Resolution No. 25-__ is enacted pursuant to Section 2.04.070(2) of the Cudahy Municipal Code to provide for the compensation of City officers and employees and to conform to the principle of equal pay for equal work. The City Manager will ensure equitable placement within the merit range and annual merit raises based on negotiated agreements and/or administrative policies. Notwithstanding the foregoing, the terms of any individual employment agreement(s) shall control the compensation amounts described in this Salary Plan when determining the salary of individual employees under contract with the City.

Section 2. Basic Compensation Plan
The basic compensation plan for City officers and employees, as of the date of adoption of this Plan is hereby established as set forth in the Addendum, including the following:
1) Hourly Range Table
2) Association Range Table
3) Management/Confidential Range Table
4) Salary Schedule
The Salary Plan shall be referred to as the Salary Schedule which incorporates the allocation of ranges (defined in the range tables) to classifications, which is attached hereto and incorporated herein by reference.

Range tables for the Cudahy Municipal Employees’ Association include five (5) steps with approximately 5% between steps.

Range tables for Management/Confidential/Department Directors include five (5) steps with approximately 5% between steps.

Range tables for Hourly employees consist of one (1) to three (3) steps with approximately 5% between steps.

Range tables for City Council Member and City Manager have one step (flat rate).

Section 3. Pay Philosophy
The City Council establishes a pay philosophy that the base pay of all positions shall be ideally set at the median pay provided by comparable cities of similar size, budget, staff, and 34 4
Exhibit "A" Page 230 of 434
geographic area, based on the City’s financial ability to pay. Merit increases provide for annual pay increases annually for demonstrated positive work performance as documented on annual performance evaluations. Annual merit increases should generally follow one step increase per year until the final step. Any increases beyond one must be approved by the City Manager.

Section 4. Plan Maintenance
Increases to the Range tables and applied to the Salary Schedule are adopted and approved by the City Council via Resolution to amend the Salary Plan.

Such recommended increases are negotiated between the City and the Cudahy Miscellaneous Employees’ Association. The City Council may further take appropriate action to extend such increases to unrepresented Management/Confidential Employees, Appointed Officials including the City Clerk, City Treasurer, and City Manager, and positions appointed by the City Manager.

These actions help preserve appropriate compensation and prevent salary compression.

In addition to negotiated increases, the City may take steps to maintain the Salary Plan by conducting regularly scheduled salary reviews and/or intermittent salary reviews as determined by changes in the labor market, and the need to compete for talent and/or retain current employees.

Section 5. Additional Approved Increasesin Compensation and Changesto the Salary and Classification Plans
Miscellaneous Employees – (Cudahy Miscellaneous Employee’s Association)23 All members shall receive:
• A 3% increase to their base rate effective July 1, 2022; and • A 2.5% increase to their base rate effective July 1, 2023; and • A 2.5% increase to their base rate effective July 1, 2024.

Section 6. The Provisions of This Plan Shall Be Operative on the Date of Its Adoption.

ADDENDUM:

1. HOURLY RANGE TABLES

2. ASSOCIATION RANGE TABLES

3. CONFIDENTIAL RANGE TABLES

4. MANAGEMENT RANGE TABLES

5. SALARY SCHEDULES
23 CMEA MOU, p. 5.
34 5
Exhibit "A" Page 231 of 434

SALARY RANGE TABLES
Exhibit "A" Page 232 of 434
Hourly Compensation Schedule
Effective July 1, 2024

Ranges A B C
H1 16.87 17.76 18.64
H2 17.72 18.60 19.53
H3 18.60 19.53 20.51
H4 19.53 20.51 21.53
H5 20.51 21.53 22.61
H6 21.53 22.61 23.74
H7 22.61 23.74 24.93
H8 23.74 24.93 26.18
H9 24.93 26.18 27.48
H10 26.18 27.48 28.86
Exhibit "A" Page 233 of 434
Hourly Compensation Schedule
Effective July 1, 2025
Ranges A B C
H1 16.87 17.76 18.64
H2 17.72 18.60 19.53
H3 18.60 19.53 20.51
H4 19.53 20.51 21.53
H5 20.51 21.53 22.61
H6 21.53 22.61 23.74
H7 22.61 23.74 24.93
H8 23.74 24.93 26.18
H9 24.93 26.18 27.48
H10 26.18 27.48 28.86

Exhibit "A" Page 234 of 434
Association Compensation Schedule
Effective July 1, 2024

Ranges A B C D E
A1 4,166 4,384 4,615 4,847 5,088
A2 4,374 4,593 4,822 5,063 5,317
A3 4,593 4,822 5,063 5,317 5,582
A4 4,822 5,063 5,317 5,582 5,862
A5 5,063 5,317 5,582 5,862 6,155
A6 5,317 5,582 5,862 6,155 6,462
A7 5,582 5,862 6,155 6,462 6,786
A8 5,862 6,155 6,462 6,786 7,125
A9 6,155 6,462 6,786 7,125 7,481
A10 6,462 6,786 7,125 7,481 7,855
A11 6,786 7,125 7,481 7,855 8,248
A12 7,125 7,481 7,855 8,248 8,660
A13 7,481 7,855 8,248 8,660 9,093
A14 7,855 8,248 8,660 9,093 9,548
A15 8,248 8,660 9,093 9,548 10,025
Exhibit "A" Page 235 of 434
Association Compensation Schedule
Effective July 1, 2025

Ranges A B C D E
A1 4,166 4,384 4,615 4,847 5,088
A2 4,374 4,593 4,822 5,063 5,317
A3 4,593 4,822 5,063 5,317 5,582
A4 4,822 5,063 5,317 5,582 5,862
A5 5,063 5,317 5,582 5,862 6,155
A6 5,317 5,582 5,862 6,155 6,462
A7 5,582 5,862 6,155 6,462 6,786
A8 5,862 6,155 6,462 6,786 7,125
A9 6,155 6,462 6,786 7,125 7,481
A10 6,462 6,786 7,125 7,481 7,855
A11 6,786 7,125 7,481 7,855 8,248
A12 7,125 7,481 7,855 8,248 8,660
A13 7,481 7,855 8,248 8,660 9,093
A14 7,855 8,248 8,660 9,093 9,548
A15 8,248 8,660 9,093 9,548 10,025
Exhibit "A" Page 236 of 434
Confidential Compensation Schedule
Effective July 1, 2024
Ranges A B C D E
C1 4,363 4,592 4,834 5,089 5,357
C2 4,581 4,810 5,051 5,304 5,569
C3 4,810 5,051 5,304 5,569 5,847
C4 5,051 5,304 5,569 5,847 6,140
C5 5,304 5,569 5,847 6,140 6,447
C6 5,569 5,847 6,140 6,447 6,769
C7 5,847 6,140 6,447 6,769 7,107
C8 6,140 6,447 6,769 7,107 7,463
Confidential Compensation Schedule
Effective July 1, 2025

Ranges A B C D E
C1 4,363 4,592 4,834 5,089 5,357
C2 4,581 4,810 5,051 5,304 5,569
C3 4,810 5,051 5,304 5,569 5,847
C4 5,051 5,304 5,569 5,847 6,140
C5 5,304 5,569 5,847 6,140 6,447
C6 5,569 5,847 6,140 6,447 6,769
C7 5,847 6,140 6,447 6,769 7,107
C8 6,140 6,447 6,769 7,107 7,463
Exhibit "A" Page 237 of 434
Director/ Manager Compensation Schedule
Effective July 1, 2024

Ranges A B C D E
M1 5,742 6,029 6,330 6,647 6,979
M2 6,259 6,571 6,900 7,245 7,608
M3 6,834 7,175 7,534 7,911 8,307
M4 7,435 7,807 8,198 8,608 9,038
M5 8,105 8,511 8,936 9,383 9,851
M6 8,834 9,276 9,740 10,226 10,738
M7 9,629 10,111 10,616 11,147 11,704
M8 10,592 11,122 11,678 12,262 12,875
M9 11,651 12,234 12,845 13,488 14,162
M10 12,817 13,457 14,131 14,837 15,579
M11 14,098 14,803 15,543 16,321 17,137
M12 15,508 16,283 17,098 17,952 18,850
M13 17,059 17,912 18,808 19,748 20,735
M14 18,765 19,703 20,688 21,723 22,809
Director/ Manager Compensation Schedule
Effective July 1, 2025

Ranges A B C D E
M1 5,742 6,029 6,330 6,647 6,979
M2 6,259 6,571 6,900 7,245 7,608
M3 6,834 7,175 7,534 7,911 8,307
M4 7,435 7,807 8,198 8,608 9,038
M5 8,105 8,511 8,936 9,383 9,851
M6 8,834 9,276 9,740 10,226 10,738
M7 9,629 10,111 10,616 11,147 11,704
M8 10,592 11,122 11,678 12,262 12,875
M9 11,651 12,234 12,845 13,488 14,162
M10 12,817 13,457 14,131 14,837 15,579
M11 14,098 14,803 15,543 16,321 17,137
M12 15,508 16,283 17,098 17,952 18,850
M13 17,059 17,912 18,808 19,748 20,735
M14 18,765 19,703 20,688 21,723 22,809
Exhibit "A" Page 238 of 434

SALARY SCHEDULES
Exhibit "A" Page 239 of 434

TITLE GROUP RATE RANGE STEP A STEP B STEP C STEP D STEP E Account Clerk PT HOURLY H9 $ 24.93 $ 26.18 $ 27.48
Accounting Technician CMEA MONTHLY A8 $ 5,862 $ 6,155 $ 6,462 $ 6,786 $ 7,125 Administrative Analyst CONFIDENTIALMONTHLY C5 $ 5,304 $ 5,569 $ 5,847 $ 6,140 $ 6,447 Administrative Assistant CMEA MONTHLY A5 $ 5,063 $ 5,317 $ 5,582 $ 5,862 $ 6,155 Administrative Clerk PT HOURLY H10 $ 26.18 $ 27.48 $ 28.86 Administrative Intern PT HOURLY H5 $ 20.51 21.53. $ 22.61 Assistant City Clerk MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Assistant City Engineer MGMT MONTHLY M5 $ 8,105 $ 8,511 $ 8,936 $ 9,383 $ 9,851 Assistant Engineer CMEA MONTHLY A10 $ 6,462 $ 6,786 $ 7,125 $ 7,481 $ 7,855 Assistant Planner CMEA MONTHLY A7 $ 5,582 $ 5,862 $ 6,155 $ 6,462 $ 6,786 Assistant Recreation Coordinator CMEA MONTHLY A3 $ 4,593 $ 4,822 $ 5,063 $ 5,317 $ 5,582 Assistant City Manager MGMT MONTHLY M13 $ 17,059 $ 17,912 $ 18,808 $ 19,748 $ 20,735 Assistant to City Manager MGMT MONTHLY M5 $ 8,105 $ 8,511 $ 8,936 $ 9,383 $ 9,851 Associate Engineer CMEA MONTHLY A13 $ 7,481 $ 7,855 $ 8,248 $ 8,660 $ 9,093 Associate Planner CMEA MONTHLY A11 $ 6,786 $ 7,125 $ 7,481 $ 7,855 $ 8,248 Building Inspector CMEA MONTHLY A10 $ 6,462 $ 6,786 $ 7,125 $ 7,481 $ 7,855 Building Official MGMT MONTHLY M7 $ 9,629 $ 10,111 $ 10,616 $ 11,147 $ 11,704 City Clerk APPOINTED MONTHLY M7 $ 9,629 $ 10,111 $ 10,616 $ 11,147 $ 11,704 City Council Member ELECTED MONTHLY FLAT RATE $1,233
City Manager APPOINTED MONTHLY FLAT RATE $21,500
Community Development Director MGMT MONTHLY M10 $ 12,817 $ 13,457 $ 14,131 $ 14,837 $ 15,579 Community Preservation Manager MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Community Preservation Officer CMEA MONTHLY A6 $ 5,317 $ 5,582 $ 5,862 $ 6,155 $ 6,462 Community Preservation Technician PT HOURLY H10 $ 26.18 $ 27.48 $ 28.86 Community Services Director MGMT MONTHLY M7 $ 9,629 $ 10,111 $ 10,616 $ 11,147 $ 11,704 Deputy City Clerk CONFIDENTIALMONTHLY C6 $ 5,569 $ 5,847 $ 6,140 $ 6,447 $ 6,769 Executive Assistant CMEA MONTHLY A7 $ 5,582 $ 5,862 $ 6,155 $ 6,462 $ 6,786 Executive Assistant to the City Manager CONFIDENTIALMONTHLY C7 $ 5,847 $ 6,140 $ 6,447 $ 6,769 $ 7,107 Finance Director MGMT MONTHLY M10 $ 12,817 $ 13,457 $ 14,131 $ 14,837 $ 15,579 Housing Specialist 1 CMEA MONTHLY A6 $ 5,317 $ 5,582 $ 5,862 $ 6,155 $ 6,462 Housing Specialist 2 CMEA MONTHLY A9 $ 6,155 $ 6,462 $ 6,786 $ 7,125 $ 7,481 Human Resources Manager MGMT MONTHLY M6 $ 8,834 $ 9,276 $ 9,740 $ 10,226 $ 10,738 Human Resources Specialist CONFIDENTIALMONTHLY C7 $ 5,847 $ 6,140 $ 6,447 $ 6,769 $ 7,107 Junior Deputy City Clerk CONFIDENTIALMONTHLY C1 $ 4,363 $ 4,592 $ 4,834 $ 5,089 $ 5,357 Maintenance Aide PT HOURLY H7 $ 22.61 $ 23.74 $ 24.93
Maintenance Leader CMEA MONTHLY A5 $ 5,063 $ 5,317 $ 5,582 $ 5,862 $ 6,155 Maintenance Superintendent MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Maintenance Supervisor CMEA MONTHLY A9 $ 6,155 $ 6,462 $ 6,786 $ 7,125 $ 7,481 Maintenance Worker CMEA MONTHLY A1 $ 4,166 $ 4,384 $ 4,615 $ 4,847 $ 5,088 Maintenance Worker- Electrician CMEA MONTHLY A4 $ 4,822 $ 5,063 $ 5,317 $ 5,582 $ 5,862 Maintenance Worker- Janitorial CMEA MONTHLY A1 $ 4,166 $ 4,384 $ 4,615 $ 4,847 $ 5,088 Management Analyst CONFIDENTIALMONTHLY C7 $ 5,847 $ 6,140 $ 6,447 $ 6,769 $ 7,107 Municipal Enforcement Officer PT HOURLY H10 $ 26.18 $ 27.48 $ 28.86 Office Clerk CMEA MONTHLY A4 $ 4,822 $ 5,063 $ 5,317 $ 5,582 $ 5,862 Parks and Recreation Program Manager MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Permit Technician CMEA MONTHLY A5 $ 5,063 $ 5,317 $ 5,582 $ 5,862 $ 6,155 Planning Technician PT HOURLY H6 $ 21.53 $ 22.61 $ 23.74 Public Safety and Services Manager MGMT MONTLY M6 $ 8,834 $ 9,276 $ 9,740 $ 10,226 $ 10,738 Public Works Director/Engineer MGMT MONTHLY M9 $ 11,651 $ 12,234 $ 12,845 $ 13,488 $ 14,162 Purchasing Coordinator CMEA MONTHLY A9 $ 6,155 $ 6,462 $ 6,786 $ 7,125 $ 7,481 Recreation Aide PT HOURLY H3 $ 18.60 $ 19.53 $ 20.51
Recreation Coordinator CMEA MONTHLY A7 $ 5,582 $ 5,862 $ 6,155 $ 6,462 $ 6,786 Recreation Leader PT HOURLY H5 $ 20.51 $ 21.53 $ 22.61
Senior Accountant MGMT MONTHLY M4 $ 7,435 $ 7,807 $ 8,198 $ 8,608 $ 9,038 Senior Building Inspector CMEA MONTHLY A12 $ 7,125 $ 7,481 $ 7,855 $ 8,248 $ 8,660 Senior Community Preservation Officer CMEA MONTHLY A8 $ 5,862 $ 6,155 $ 6,462 $ 6,786 $ 7,125 Senior Planner MGMT MONTHLY M5 $ 8,105 $ 8,511 $ 8,936 $ 9,383 $ 9,851 Senior Recreation Leader PT HOURLY H7 $ 22.61 $ 23.74 $ 24.93

CITY OF CUDAHY
SALARY SCHEDULE EFFECTIVE DATE July 1, 2025
Exhibit "A" Page 240 of 434

CITY OF CUDAHY
SALARY SCHEDULE EFFECTIVE DATE July 1, 2025

TITLE GROUP RATE RANGE STEP A STEP B STEP C STEP D STEP E Account Clerk PT HOURLY H9 $ 24.93 $ 26.18 $ 27.48
Accounting Technician CMEA MONTHLY A8 $ 5,862 $ 6,155 $ 6,462 $ 6,786 $ 7,125 Administrative Analyst CONFIDENTIAL MONTHLY C5 $ 5,304 $ 5,569 $ 5,847 $ 6,140 $ 6,447 Administrative Assistant CMEA MONTHLY A5 $ 5,063 $ 5,317 $ 5,582 $ 5,862 $ 6,155 Administrative Clerk PT HOURLY H10 $ 26.18 $ 27.48 $ 28.86 Administrative Intern PT HOURLY H5 $ 20.51 $ 21.53 $ 22.61 Assistant City Clerk MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Assistant City Engineer MGMT MONTHLY M5 $ 8,105 $ 8,511 $ 8,936 $ 9,383 $ 9,851 Assistant Engineer CMEA MONTHLY A10 $ 6,462 $ 6,786 $ 7,125 $ 7,481 $ 7,855 Assistant Planner CMEA MONTHLY A7 $ 5,582 $ 5,862 $ 6,155 $ 6,462 $ 6,786 Assistant Recreation Coordinator CMEA MONTHLY A3 $ 4,593 $ 4,822 $ 5,063 $ 5,317 $ 5,582 Assistant City Manager MGMT MONTHLY M11 $ 14,098 $ 14,803 $ 15,543 $ 16,321 $ 17,137 Assistant to City Manager MGMT MONTHLY M5 $ 8,105 $ 8,511 $ 8,936 $ 9,383 $ 9,851 Associate Engineer CMEA MONTHLY A13 $ 7,481 $ 7,855 $ 8,248 $ 8,660 $ 9,093 Associate Planner CMEA MONTHLY A11 $ 6,786 $ 7,125 $ 7,481 $ 7,855 $ 8,248 Building Inspector CMEA MONTHLY A10 $ 6,462 $ 6,786 $ 7,125 $ 7,481 $ 7,855 Building Official MGMT MONTHLY M7 $ 9,629 $ 10,111 $ 10,616 $ 11,147 $ 11,704 City Clerk APPOINTED MONTHLY M7 $ 9,629 $ 10,111 $ 10,616 $ 11,147 $ 11,704 City Council Member ELECTED MONTHLY FLAT RATE $484
City Manager APPOINTED MONTHLY FLAT RATE $20,673.08
Community Development Director MGMT MONTHLY M10 $ 12,817 $ 13,457 $ 14,131 $ 14,837 $ 15,579 Community Preservation Manager MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Community Preservation Officer CMEA MONTHLY A6 $ 5,317 $ 5,582 $ 5,862 $ 6,155 $ 6,462 Community Preservation Technician PT HOURLY H10 $ 26.18 $ 27.48 $ 28.86 Community Services Director MGMT MONTHLY M7 $ 9,629 $ 10,111 $ 10,616 $ 11,147 $ 11,704 Deputy City Clerk CONFIDENTIAL MONTHLY C6 $ 5,569 $ 5,847 $ 6,140 $ 6,447 $ 6,769 Executive Assistant CMEA MONTHLY A7 $ 5,582 $ 5,862 $ 6,155 $ 6,462 $ 6,786 Executive Assistant to the City Manager CONFIDENTIAL MONTHLY C7 $ 5,847 $ 6,140 $ 6,447 $ 6,769 $ 7,107 Finance Director MGMT MONTHLY M10 $ 12,817 $ 13,457 $ 14,131 $ 14,837 $ 15,579 Housing Specialist 1 CMEA MONTHLY A6 $ 5,317 $ 5,582 $ 5,862 $ 6,155 $ 6,462 Housing Specialist 2 CMEA MONTHLY A9 $ 6,155 $ 6,462 $ 6,786 $ 7,125 $ 7,481 Human Resources Manager MGMT MONTHLY M6 $ 8,834 $ 9,276 $ 9,740 $ 10,226 $ 10,738 Human Resources Specialist CONFIDENTIAL MONTHLY C7 $ 5,847 $ 6,140 $ 6,447 $ 6,769 $ 7,107 Junior Deputy City Clerk CONFIDENTIAL MONTHLY C1 $ 4,363 $ 4,592 $ 4,834 $ 5,089 $ 5,357 Maintenance Aide PT HOURLY H7 $ 22.61 $ 23.74 $ 24.93
Maintenance Leader CMEA MONTHLY A5 $ 5,063 $ 5,317 $ 5,582 $ 5,862 $ 6,155 Maintenance Superintendent MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Maintenance Supervisor CMEA MONTHLY A9 $ 6,155 $ 6,462 $ 6,786 $ 7,125 $ 7,481 Maintenance Worker CMEA MONTHLY A1 $ 4,166 $ 4,384 $ 4,615 $ 4,847 $ 5,088 Maintenance Worker- Electrician CMEA MONTHLY A4 $ 4,822 $ 5,063 $ 5,317 $ 5,582 $ 5,862 Maintenance Worker- Janitorial CMEA MONTHLY A1 $ 4,166 $ 4,384 $ 4,615 $ 4,847 $ 5,088 Management Analyst CONFIDENTIAL MONTHLY C7 $ 5,847 $ 6,140 $ 6,447 $ 6,769 $ 7,107 Municipal Enforcement Officer PT HOURLY H10 $ 26.18 $ 27.48 $ 28.86 Office Clerk CMEA MONTHLY A4 $ 4,822 $ 5,063 $ 5,317 $ 5,582 $ 5,862 Parks and Recreation Program Manager MGMT MONTHLY M3 $ 6,834 $ 7,175 $ 7,534 $ 7,911 $ 8,307 Permit Technician CMEA MONTHLY A5 $ 5,063 $ 5,317 $ 5,582 $ 5,862 $ 6,155 Planning Technician PT HOURLY H6 $ 21.53 $ 22.61 $ 23.74 Public Safety and Services Manager MGMT MONTLY M6 $ 8,834 $ 9,276 $ 9,740 $ 10,226 $ 10,738 Public Works Director/Engineer MGMT MONTHLY M9 $ 11,651 $ 12,234 $ 12,845 $ 13,488 $ 14,162 Purchasing Coordinator CMEA MONTHLY A9 $ 6,155 $ 6,462 $ 6,786 $ 7,125 $ 7,481 Recreation Aide PT HOURLY H3 $ 18.60 $ 19.53 $ 20.51
Recreation Coordinator CMEA MONTHLY A7 $ 5,582 $ 5,862 $ 6,155 $ 6,462 $ 6,786 Recreation Leader PT HOURLY H5 $ 20.51 $ 21.53 $ 22.61
Senior Accountant MGMT MONTHLY M4 $ 7,435 $ 7,807 $ 8,198 $ 8,608 $ 9,038 Senior Building Inspector CMEA MONTHLY A12 $ 7,125 $ 7,481 $ 7,855 $ 8,248 $ 8,660 Senior Community Preservation Officer CMEA MONTHLY A8 $ 5,862 $ 6,155 $ 6,462 $ 6,786 $ 7,125 Senior Planner MGMT MONTHLY M5 $ 8,105 $ 8,511 $ 8,936 $ 9,383 $ 9,851 Senior Recreation Leader PT HOURLY H7 $ 22.61 $ 23.74 $ 24.93 Exhibit "A" Page 241 of 434
Exhibit "A" Page 242 of 434
1 2025

SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
(Engagement: PUBLIC FINANCE CONSULTING)
(Parties: Katherine Godbey and City of Cudahy)
THIS SECOND AMENDMENT (hereinafter, “Second Amendment”) to that certain agreement entitled “Professional Services Agreement”, dated May 1, 2025, (hereinafter, the “Master Agreement”), is hereby made and entered into this 17th day of June 2025 (hereinafter, the “Effective Date”) by and between the CITY OF CUDAHY, a municipal corporation (hereinafter, “CITY”) and Katherine Godbey (hereinafter, “CONSULTANT”).

For purposes of this Second Amendment, the capitalized term “Parties” shall be a collective reference to both CITY and CONSULTANT. The capitalized term “Party” may refer to either CITY or CONSULTANT interchangeably as appropriate.

RECITALS
This SECOND AMENDMENT is made and entered into with respect to the following facts:

WHEREAS, on May 1, 2025, the Parties executed and entered into the Master Agreement with Katherine Godbey, to provide Public Finance Consulting Services (“Services”); and
WHEREAS, the Master Agreement was subsequently amended on June 4, 2025, by way of a First Amendment to increase the Not-to-Exceed sum to TWENTY-FIVE THOUSAND DOLLARS ($25,000) (hereinafter the “First Amendment”); and WHEREAS, the Master Agreement as amended by way of the First Amendment is attached and incorporated hereto as Exhibit “A”; and
WHEREAS, the City requires continued Services; and
WHEREAS, continued Services require an amendment to the Master Agreement to extend the term and increase the Not-To-Exceed Sum to ONE HUNDRED AND FIVE THOUSAND DOLLARS ($105,000); and .

WHEREAS, the execution of this Second Amendment was approved by the Cudahy City Council at its Regular Meeting of June 17, 2025, under Agenda Item No. _______.

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. Section 1.1 “Term” of the Master Agreement is hereby amended, extending the term to December 31, 2025.

Attachment C Page 243 of 434
2 SECTION 2. The Not-to-Exceed Sum as set forth in section 1.4 of the Master Agreement is hereby increased by an additional eighty thousand dollars for a Not-to Exceed Sum of ONE HUNDRED AND FIVE THOUSAND DOLLARS ($105,000).

SECTION 3. Except as otherwise set forth in this Second Amendment, the Master Agreement, shall remain binding, controlling, and in full force and effect. Section 6.19 of “Entire Agreement” provision of the Master Agreement notwithstanding, this Second Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 4. In the event of any conflict or inconsistency between the provisions of this Second Amendment and the provisions of the Master Agreement, the provisions of this Second Amendment shall govern and control to the extent of the conflict or inconsistency and no further.
(SIGNATURES ON NEXT PAGE)

3 IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be executed on the day and year first appearing above.

CITY OF CUDAHY:

By:

Alfonso Noyola, ICMA-CM
City Manager

Date:_______________________
KATHERINE GODBEY:

By:

Name:

Title:

Date:_______________________
APPROVED AS TO FORM:

By:

Stephanie Arechiga
City Attorney

Date:_______________________

4 EXHIBIT “A”

FIRST AMENDMENT/MASTER AGREEMENT

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025 Page 1 of 3

STAFF REPORT
Date: June 17, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Brenda Rodriguez, Community Services Director/
Acting Human Resources
Subject: Adoption of Proposed Resolution No. 25-35 Designating Holidays on which City Offices Shall be Closed for Fiscal Year 2025-26

RECOMMENDATION
The City Council is requested to adopt proposed Resolution No. 25-35, Replacing and Superseding Resolution No. 24-16, Designating Holidays on which City Offices Shall be Closed for Fiscal Year 2025-26.

BACKGROUND

1. Section 6700 of the California Government Code designates daysthat are holidays. It also states that City offices shall be closed on designated State Holidays unless otherwise provided by the City.

2. On December 1, 2020, the City Council approved Resolution 20-40, designating City holidays on which City offices shall be closed in 2021.

3. On May 17, 2022, the City Council approved Resolution 22-22, designating City holidays on which City offices shall be closed in 2022.

4. On June 20, 2023, the City Council approved Resolution 23-27, designating City holidays on which City offices shall be closed in fiscal year 2023-2024

5. On June 4, 2024, the City Council approved Resolution 24-16, designating City Item Number
14D

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025 Page 2 of 3

holidays on which City offices shall be closed in fiscal year 2024-2025

ANALYSIS
Under Section 6700 of the California Government Code, cities can designate holidays on which City offices will be closed for business.

The 2025-26 holidays currently observed by the city are as follows:

July 4, 2025 Independence Day
September 1, 2025 Labor Day
November 11, 2025 Veteran’s Day
November 27, 2025 Thanksgiving Day
December 24, 2025 Christmas Eve
December 25, 2025 Christmas Day
January 1, 2026 New Year’s Day
January 19, 2026 Martin Luther King Jr. Day
February 16, 2026 President’s Day
March 31, 2026 Cesar Chavez Day
May 25, 2026 Memorial Day
June 19, 2026 Juneteenth Day
If a designated holiday from above falls on a Friday or Saturday,the City will observe the holiday on the prior Thursday, and if the holiday falls on a Sunday the City will observe the holiday on the following Monday.

CONCLUSION
City Council approval of this resolution allows observance of these City holidays.

STRATEGIC PLAN CORRELATION
None

FINANCIAL IMPACT
Costs associated with this holiday schedule were incorporated into the 2025-2026 City Budget.

There are no additional fiscal impacts.

ATTACHMENTS

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025 Page 3 of 3

A. Proposed Draft Resolution No. 25-35 Replacing and Superseding Resolution No. 24- 16, designating holidays on which city offices shall be closed for fiscal Year 2025-2026.

RESOLUTION NO. 25-35

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CUDAHY, CALIFORNIA, DESIGNATING

HOLIDAYS ON WHICH CITY OFFICES SHALL BE
CLOSED FOR FISCAL YEAR 2025-26
WHEREAS, Section 6700 of the California Government Code designates days that are holidays in the State of California (the “State”); and
WHEREAS, Section 6702 of the California Government Code provides that City offices shall be closed designated State holidays unless otherwise provided by the City; and WHEREAS, the City Council desires and deems it to be in the best public interest to designate those holidays on which City offices will be closed.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cudahy, California, as follows:

SECTION 1. The recitals set forth above are true and correct and incorporated herein by this reference.

SECTION 2. That the public offices of the City shall be closed on the following dates in observance of the indicated holidays for fiscal year 2025-26:

July 4, 2025 Independence Day
September 1, 2025 Labor Day
November 11, 2025 Veteran’s Day
November 27, 2025 Thanksgiving Day
December 24, 2025 Christmas Eve
December 25, 2025 Christmas Day
January 1, 2026 New Year’s Day
January 19, 2026 Martin Luther King Jr. Day
February 16, 2026 President’s Day
March 31, 2026 Cesar Chavez Day
May 25, 2026 Memorial Day
June 19, 2026 Juneteenth Day
If a designated holiday from above falls on a Friday or Saturday, the City will observe the holiday on the prior Thursday, and if the holiday falls on a Sunday the City will observe the holiday on the following Monday.

Attachment A Page 250 of 434
Resolution No. 25-35

2 PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 17th day of June 2025.
__________________________
Elizabeth Alcantar Loza
Mayor
ATTEST:

Richard Iglesias
City Clerk

Resolution No. 25-35

3 CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 25-35 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17th day of June, 2025, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
6/17/2025 Page 1 of 2

STAFF REPORT
Date: June 17, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Katherine Godbey, Finance Director
Subject: Adoption of Proposed Resolution No.25-36 Electing the Population and Inflation Factors and Establishing the City’s Fiscal Year (FY) 2025-2026 Appropriations Limit (GANN Limit)

RECOMMENDATION
The City Council is requested to adopt proposed Resolution No. 25-36 confirming the population and inflation factors used to calculate the annual Appropriation Limit (GANN Limit) and establish the City’s GANN Limit for Fiscal Year (FY) 2025-2026.

BACKGROUND

1. In November 1979, Proposition 4 was approved by the voters adding Article XIIIB, also known as the GANN Limitation, to the State Constitution to ensure that limits were placed on all state and local government appropriations. The appropriations calculation must be approved by the Council on an annual basis.

2. In 1980, the State Legislature added Section 9710 of the Government Code stating that the governing body of each City must establish, by resolution, an appropriations limit for the following year.

3. In June 1990, the voters of California approved Proposition 111 which revised the annual adjustment factors applied to the 1986-87 GANN Limit and each year thereafter.

4. On June 4, 2024, the City Council passed Resolution No. 22-10 establishing the GANN Limit for Fiscal Year 2024-2025.

Item Number
14E

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Staff Report
6/17/2025 Page 2 of 2

ANALYSIS
The GANN Limit restricts the amount of revenue classified as proceeds of taxes that can be appropriated in any fiscal year by the City of Cudahy. The GANN Limit for any fiscal year is equal to the previous year’s GANN Limit, adjusted for population changes and the change in the U.S.

Consumer Price Index or California per capita personal income, whichever is less.

Staff has complied with provisions of Article XIIIB of the California State Constitution in determining the GANN Limit for FY 2025-2026, and the City Council is required to confirm all factors used for calculating the GANN Limit by adoption of a resolution. In determining the GANN Limit for FY 2025-2026, the California Per Capita Income and the population growth of the County were applied to the GANN Limit (Attachment A). The City’s GANN Limit for FY 2025- 2026 is $40,196,490. The General Fund appropriations subject to the GANN Limit per the proposed FY 2025-2026 City Budget is $10,964,195. Therefore, the City is $29,232,295 below the GANN Limit.

CONCLUSION
In order to annually comply with California State law, City Council adoption of the proposed resolution is necessary at this time.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Cudahy sustains strong financial health and provides fiscal transparency during budget preparation and throughout the fiscal year.
• Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
Adoption of this proposed Resolution No. 25-36 does not have an impact on the FY 2025-2026 City Budget.

ATTACHMENTS
A. Calculation of GANN Limit for FY 2025-2026
B. Draft Proposed Resolution No. 25-36 establishing an appropriations limit on revenues and expenditures for FY 2025-2026

Population Change
City -0.34%
Per Capita Income Change 1.06%
Population Change Converted
to a Ratio 1.0028
Per Capita Income Change Converted
to a Ratio 1.0674
Calculation of Growth Factor

1.0028 X 1.0674 1.0072
2024-2025 Appropriations Limit $ 39,908,835
2025-2026 Appropriations Limit
$39,908,835 X 1.0072 $ 40,196,490

CITY OF CUDAHY
Appropriations Limit (GANN) Computation
Fiscal Year 2025-2026
Attachment A Page 255 of 434
RESOLUTION NO. 25-36

A RESOLUTION OF THE CITY COUNCIL THE CITY OF THE

CITY OF CUDAHY, CALIFORNIA, ESTABLISHING AN

APPROPRIATIONS LIMIT ON REVENUES AND
EXPENDITURES FOR FISCAL YEAR (FY) 2025-2026
WHEREAS, the Gann Spending Limitation Initiative added Article XIIIB of the California Constitution restricts the amount of revenue that a governmental entity can appropriate in any fiscal year and provides for an annual increase based on inflation and population growth; and
WHEREAS, Government Code section 7900 et seq. provides for the implementation of Article XIIIB by defining various terms and prescribing procedures to be used in implementing specific provisions, including the establishment each year of an appropriations limit by the governing body of each local jurisdiction.; and WHEREAS, Proposition 111, passed in June 1990, modified Article XIIIB by changing the adjustment factors used to compute an appropriations limit and allowing each entity to choose annually between these factors; and
WHEREAS, the State of California Department of Finance has provided the following data for the establishment of the City's appropriations limit for Fiscal Year 2025-2026:

POPULATION CALIFORNIA
City County PER CAPITA INCOME
-0.34% 0.30.% +1.06%
WHEREAS, the required computation to determine the Fiscal Year 2025-2026 appropriations limit for the City of Cudahy has been performed by the State Department of Finance and Is attached hereto as Exhibit “A.”

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUDAHY DOES HEREBY RESOLVE THAT:

SECTION 1. Pursuant to Article XIIIB of the California Constitution:
(1) the adjustment factors chosen to calculate the City's appropriations limit for Fiscal Year 2025-2026 were: a) the change in County-wide population (0.30%) and b) the change in California per capita income (1.06%); and
(2) the appropriations limit for Fiscal Year 2025-2026 is hereby established in the amount of $40,196,490.

SECTION 2. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions.

Attachment B Page 256 of 434
Resolution No. 25-36

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at a regular meeting on this 17th day of June 2025.

Elizabeth Alcantar Loza
Mayor
ATTEST :

Richard Iglesias
City Clerk

Resolution No. 25-36

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor, and attested by the Deputy City Clerk at a regular meeting of said Council held on the 17th day of June 2024, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

May 2025
Dear Fiscal Officer:

Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code Section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2025, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2025-26. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2025-26 appropriations limit. Attachment B provides the city and unincorporated county population percentage change along with the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code Section 2228 provides additional information regarding the appropriations limit.

Article XIII B, Section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code Section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2025. Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.

JOE STEPHENSHAW
Director
By:

ERIKA LI
Chief Deputy Director
Attachment
Exhibit “A” Page 259 of 434
May 2025
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2025-26 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2025-26 6.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2025-26 appropriation limit.
2025-26:

Per Capita Cost of Living Change = 6.44 percent
Population Change = 0.28 percent
Per Capita Cost of Living converted to a ratio: 6.44 + 100 = 1.0644 100
Population converted to a ratio: 0.28 + 100 = 1.0028
100
Calculation of factor for FY 2025-26: 1.0644 x 1.0028 = 1.0674

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025

STAFF REPORT
Date: June 17, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Johncito “John” Peraza, Assistant to the City Manager Subject: Third Amendment to Contract Services Agreement between Consolidated Disposal Service LLC, dba Republic Services and the City of Cudahy for Solid Waste and Recyclable Materials Collection Services

RECOMMENDATION
The City Council is requested to approve the Third Amendment to the Contract Services Agreement between Consolidated Disposal Service LLC, dba Republic Services, and the City of Cudahy.

BACKGROUND
The City of Cudahy entered into a Master Franchise Agreement (the “Agreement”) with its franchised solid waste hauler (“Collector”) on December 15, 1998, for the collection and handling of solid waste, recyclable materials, and green waste. The Agreement granted an exclusive franchise to the Collector and established the terms and conditions of service within the City.

The Agreement was amended on April 16, 2012, via a First Amendment to reconcile accounts and to establish that, as of that date, the Collector was in full compliance with all franchise terms. A Second Amendment was executed on December 1, 2020, requiring the Collector to provide Assembly Bill (AB) 341 and AB 1826 recycling and organic waste collection services.

On August 17, 2020, the City issued a formal Notice to Terminate the automatic renewal provision of the Master Agreement, which set the agreement’s expiration date as January 1, 2031. However, in order to support the rollout of new state-mandated services, the proposed Third Amendment includes a three-year extension, which—if approved—would extend the agreement through January 1, 2034.

Item Number
14F

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025

As of January 1, 2022, all residents and businesses in California are required to recycle food and yard waste. Acceptable materials include food waste, green waste, landscape and pruning waste, non-hazardous wood waste and food-soiled paper products.

SB1383 requires local governmental agencies to provide organic waste services within its jurisdiction. Organic waste includes food, green material, landscape, prunings, lumber, wood, paper products, printing and writing paper. The City of Cudahy contracts with Republic Services for recycling and trash hauling services.

Effective July 1, 2024, SB1383 requires local governmental agencies to begin enforcing the said regulations. The regulations aim to divert 75% of organic waste from landfills and a 20% increase in edible food recovery by January 1, 2025.

The City of Cudahy is currently non-compliant with the regulations set forth by SB1383. The City has been in ongoing discussions with Republic Services since November 2023 to discuss a contract amendment for SB1383 implementation and compliance services.

ANALYSIS
The City of Cudahy is currently non-compliant with SB1383. At the December 3, 2024, City Council meeting, the Council reviewed three proposals submitted by Republic Services to address SB 1383 compliance. After review and discussion, the Council directed staff to proceed with Proposal 3.

Proposal 3 includes the full suite of required SB 1383 services and establishes a phased rate structure over a three-year period. For residential accounts, rates begin at $29.93 in year one, increase to $31.40 in year two, and reach $32.92 in year three. For commercial accounts, the progression is $421.39, $442.04, and $463.53, respectively. This approach provides time for customers to adjust to the new cost structure while allowing the City to fulfill its regulatory obligations.

In addition, Proposal 3 includes a shift from the Regional Disposal Consumer Price Index (CPI) to the Water, Sewer, Trash (WST) CPI for future rate adjustments. The WST index generally reflects more moderate increases and may help limit volatility in future billing.

The Third Amendment also extends the term of the existing agreement by three years. This extension supports operational continuity and allows adequate time for rollout of expanded education and outreach programs, inspections, waiver processing, and enforcement activities—all of which are required components of the SB 1383 framework.

Proposals initially shared below.

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
06/17/2025

CONCLUSION
The proposed Third Amendment to the City’s agreement with Republic Services represents the next required step in fulfilling the City’s obligations under SB 1383. It reflects the Council’s previously stated direction, aligns with CalRecycle regulations, and supports continued service delivery in a manner that is both operationally sound and financially measured.

If approved, the contract will be extended through January 1, 2034, and the implementation of SB 1383 services will proceed according to the terms of Proposal 3.

STRATEGIC PLAN CORRELATION
Goal D: Financial Stability and Transparency

2. Provide regular updates to the City Council and community about the City’s finances.

FINANCIAL IMPACT
There will be no current impact to the City’s General Fund. The updated rates will be sent to the customers to pay via Republic Services for the cost of implementation of SB 1383.

ATTACHMENTS
A. Third Amendment (Proposed), including Exhibit A (Master Agreement), Exhibit B (Termination Letter), and Exbibit C (Republic Services Proposal Cudahy CA SB1383) B. First Amendment
C. Second Amendment

1 2025

THIRD AMENDMENT TO CONTRACT SERVICES AGREEMENT
(Engagement: Solid Waste and Recyclable Materials
Collection Services)
(Parties: CONSOLIDATED DISPOSAL SERVICE L.L.C., dba Republic Services and CITY OF CUDAHY) THIS THIRD AMENDMENT (hereinafter, “Third Amendment”) to that certain agreement entitled “Agreement For Solid Waste And Recyclable Materials Collection Services”, dated December 15, 1998, (hereinafter, the “Master Agreement”), is hereby made and entered into this 20th Day of May 2025 (hereinafter, the “Effective Date”) by and between the CITY OF CUDAHY, a municipal corporation (hereinafter, “City”) and CONSOLIDATED DISPOSAL SERVICE L.L.C., dba Republic Services (hereinafter, “Collector”). For purposes of this Third Amendment, the capitalized term “Parties” shall be a collective reference to both City and Collector. The capitalized term “Party” may refer to either City or Collector, interchangeably as appropriate.

RECITALS
This Third Amendment is made and entered into with respect to the following facts:

WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“Act”) and subsequent additions and amendments (codified at California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for the collection of solid waste within their jurisdiction; and WHEREAS, on December 15, 1998, the Master Agreement was executed by the Parties on December 9, 2013, under the authority of Public Resources Code Section 40059 and other applicable law; and ; and
WHEREAS, the Master Agreement was subsequently amended on April 16, 2012, by way of a First Amendment to memorialize the reconciliation of accounts and establish that as of the date of the First Amendment, Collector was in compliance with all terms and conditions of the franchise agreement. (hereinafter the “First Amendment”); and WHEREAS, the Master Agreement was subsequently amended on December 1, 2020, by way of a Second Amendment requiring Collector provide required AB 341 and AB 1826 recycling and organic waste collection services so that the City remained in compliance with the collection requirements of AB 341 and AB 1826 (hereinafter the “Second Amendment”); and WHEREAS, the Master Agreement as amended by way of the First and Second Amendments is attached and incorporated hereto as Exhibit “A”; and WHEREAS, on August 17, 2020, the City submitted a formal Notice to Terminate the Automatic Renewal and Extension provision of the Master Agreement, thereby terminating the Master Agreement on January 1, 2031, (“Notice to Terminate”) attached and incorporated hereto as Exhibit “B”; and
Attachment A Page 264 of 434
2 WHEREAS, on July 18, 2024, Collector submitted a proposal for providing compliance under SB 1383 to the City (“Collector SB 1383 Proposal”), attached and incorporated hereto as Exhibit “C”; and
WHEREAS, at the Cudahy City Council Meeting on December 3, 2024, the City Council provided staff direction requesting an amendment to the current Master Agreement, adding the Collector’s SB 1383 Proposal, to the scope of work required under the Master Agreement; and
WHEREAS, Collector agrees to continue to provide all current services as required under the Master Agreement, as amended, and will now provide required SB 1383 recycling and organic waste collection services, ensuring the City is in compliance with the collection and reporting requirements under SB 1383; and
WHEREAS, Collector shall assume responsibility for all legal fees and costs incurred in the process of finalizing the language of the Third Amendment to the Agreement; and WHEREAS, execution of this Third Amendment was approved by the Cudahy City Council at its Regular Meeting of May 20, 2025, under Agenda Item No. _______; NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

AMENDMENT No. 3
SECTION 1. The Recitals set forth above are true and correct and are incorporated herein by reference.

SECTION 2. Section 1.4 Term of the Master Agreement is hereby amended in its entirety, extending the period by three years, incorporating the August 2020 termination, to read as follows:
“1.4 Term. The Term of this Agreement shall be for ten (10) years (the “Initial Term”), commencing January 1, 1999. On January 1, 2000, and each year thereafter the term of this Agreement shall be automatically extended one (1) additional year, so that the remaining term shall continue to be ten (10) years.

Pursuant to the Notice to Terminate received by Collector, from City dated August 17, 2020, setting the termination date as January 1, 2031, the termination date is hereby extended to January 1, 2034.”
SECTION 3. Section 3.14 Solid Waste Disposal; Processing of Recyclable Materials of the Master Agreement is hereby amended to include the following items for which Collector will provide services to assist City with compliance with the requirements of SB 1383:

3 A. DEFINITIONS. The following definitions are added to, or replaced in, the Master Agreement:

ACT means the California Integrated Waste Management Act of 1989 (sometimes referred to as “AB 939”), Public Resources Code § 40000 and following as it may be amended, including the Short-Lived Climate Pollutants Bill of 2016 (SB 1383).

CCR means the State of California Code of Regulations. CCR references are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR).

CalRecycle means the California Department of Resources Recycling and Recovery.

Commercial Business or Commercial means a firm, partnership, proprietorship, joint-stock company, corporation, or association, whether for-profit or nonprofit, strip mall, industrial facility, or a Multifamily Residential dwelling, or as otherwise defined herein and in 14 CCR Section 18982(a)(6).

Compost means product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized facility or as stated in 14 CCR Section 17896.2(a)(4).

Compostable means materials that can be broken down or decomposed under specific natural conditions or a human-driven Compost process, to create Compost.

Container means a cart, can, commercial bin, debris box, or stationary compactor intended for the purpose of depositing waste for disposal, except construction and demolition debris and bulky items, or Recyclable Materials and Organic Waste for diversion. Containers may be provided by City or Contractor, or for manual collection as may be required to be provided by the property owner or occupant generating Solid Waste.

Container Contamination or Contaminated Container means a container, regardless of color, that contains Prohibited Container Contaminants, or as otherwise defined in 14 CCR Section 18982(a)(55).

Excluded Waste means hazardous substance, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the Special District and its generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in City’s or Contractor’s

4 reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose the City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code.

Hauler Route means the designated itinerary or sequence of stops for each segment of the City’s collection service area, or as otherwise defined in 14 CCR § 18982(a)(31.5).

Multi-Family Residential Dwelling or MFD. Premises used for residential purposes with five (5) or more dwelling units, including condominium projects, duplexes, townhouse projects, apartment houses, or mobile home parks, irrespective of whether residence therein is transient, temporary or permanent which receive collection services from centralized locations. Multi-Family premises include hotels, motels, or other transient occupancy facilities, collectively all of which are considered Commercial Businesses.

Organic Waste or Organics means waste containing material originated from living organisms and their metabolic waste products, and includes, but is not limited to, food, Green waste material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined by 14 CCR Section 18982(a). Organic Waste does not include Compostable plastics.

Organic Waste Container or Organics Container means a Container used for the purpose of storage and collection of Source Separated Organic Waste.

Organic waste generator means the Person or entity that is responsible for the initial creation of Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(48).

Prohibited container contaminants means materials placed in the incorrect container for resource recovery, includes the following: (i) discarded materials placed in the Recycling Container that are not identified as acceptable Source Separated Recyclable Materials for the Recycling Container; (ii) discarded materials placed in the Organics Container that are not identified as acceptable Source Separated Organics Container Organic Waste for the Organics Container; (iii) discarded materials placed in the Trash Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Organics Container Organic Wastes to be placed in Organics Container and/or Recycle Container; and, (iv) Excluded Waste placed in any container.

Recycling Container has the same meaning as in 14 CCR section 18982.2(a)(5) and shall be used for the purpose of storage and collection of Source Separated

5 Recyclable Materials.

Route Review means a visual inspection of Containers along a Hauler Route for the purpose of determining Container Contamination and may include mechanical Inspection methods such as the use of cameras or probes, or as otherwise defined in 14 CCR Section 18982(a)(65).

SB 1383 means Senate Bill 1383 (Chapter 395, Statutes of 2016). References to SB 1383 herein shall also include the SB 1383 Regulations.

SB 1383 Regulations means the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of regulations of 14 CCR and 27 CCR.

Single-Family means of, from, or pertaining to any residential premises with fewer than five (5) units.

Source Separated means materials, including commingled recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing those materials for resource recovery or as otherwise defined in 14 CCR Section 17402.5(b)(4). Source Separated shall include separation of materials by the generator, property owner, property owner’s employee, property manager, or property manager’s employee into different containers for the purpose of collection such that Source Separated materials are separated from materials places in the Trash Container or other Solid Waste for the purposes of collection and processing.

Trash means Solid Waste placed in the designated container for disposal to landfill.

Trash Container means a Container used for the purpose of storage and collection of Trash.

B. SFD COLLECTION SERVICES.

SB 1383 Services
(a) Containers. Collectorr shall provide SB 1383 compliant three (3) container Residential collection services as follows:

1. A Green Container for organic waste (only food waste, yard waste, green waste, and other organic materials). A Blue Container for recyclables (non-organic recyclables, such as bottles, cans, and plastic, and organic waste such as paper and cardboard.) A Gray or Black Container for Trash, non-organic waste only (Items that cannot be recycled or composted).

6 2. Residential customers will maintain their existing containers.

Replacement of Residential containers shall be made from existing containers purchased prior to January 1, 2022 until such time as the Contractor’s existing inventory of such containers is exhausted. New or replacement containers requested will be SB 1383 color and compliant.
(b) Outreach. Contractor will implement targeted education and outreach efforts to Residential customers regarding SB 1383 required programs consisting of educational materials to explain program changes and new program implementation. Contractor will also provide Residential customers with SB 1383 program implementation information in Contractor’s four Quarterly newsletters to Customers. Contractor shall provide education and outreach materials in English and Spanish languages.

D. COMMERCIAL COLLECTION SERVICES (Including Multifamily).

SB 1383 Services
(a) Containers. Contractor shall provide SB 1383 compliant three (3) container Commercial collection services as follows:

1. A Green Container for organic waste (only food waste, yard waste, green waste, and other organic materials.) A Blue Container for recyclables (non-organic recyclables, such as bottles, cans, and plastic, and organic waste such as paper and cardboard.) A Gray or Black Container for non-organic waste only (Items that cannot be recycled or composted.)

2. Replacement of Commercial containers shall be made from existing containers purchased prior to January 1, 2022, until such time as the Contractor’s existing inventory of such containers is exhausted. New or replacement containers requested will be SB 1383 color and compliant. New containers purchased by Contractor after January 1, 2022, are required to meet SB 1383 container color (Gray/Black, Blue and Green) and labelling requirements.
(b) Outreach. Contractor will implement targeted education and outreach efforts to Commercial customers regarding SB 1383 required programs consisting of educational materials to explain program changes and new program implementation. Contractor shall provide education and outreach materials in English and Spanish languages.
(c) Physical Space and De Minimis Waivers. Contractor shall assist City in connection with Commercial Customer applications for Physical Space

7 Waivers and De Minimis Quantity Waivers applied for in compliance with the applicable provisions of the City Municipal Code. Contractor will assist City with development of application requirements and protocols, evaluation, and verification of the details in the Customer waiver applications, and provide assistance with preparation of City’s written determinations on Customer waiver applications
E. CONTAMINATION MONITORING AND ENFORCEMENT.

Contamination Monitoring And Enforcement, is hereby added to the Master Agreement as follows:

SB 1383 Contamination Monitoring and Enforcement.
(a) Collector shall conduct annual route reviews each calendar year for contaminants in Residential Containers in a manner that complies with the requirements of 14 CCR Section 18984.5.
(b) Contractor shall document Contamination and will notify the customer of the Contamination by email, phone, text or billing messages to inform customers of proper material separation requirements and Contamination fees and charges. Collector may, at its discretion collect the Container as Recyclable Materials, Organics, or Refuse. Collector may charge customers with contaminated carts identified through routine periodic Contamination monitoring a contamination fee pursuant to this section.
(c) Route reviews will be conducted by a residential route auditor as part of the contamination minimization program. who will perform contamination monitoring requirements. Contaminated carts will be identified, and the Customer notified of identified contamination by email, phone, text or billing message.
(d) Contamination Fee: A Contamination Fee will be charged by Collector to Residential and Commercial Customers with contaminated carts identified through routine periodic Contamination monitoring. The fee is a peroccurrence fee for observed contamination in Customer’s Carts and/or Bins.

For Residential Contamination, the Contamination Fee shall be no less than $15.00 per occurrence. For Commercial container contamination, including MultiFamily customers, the the Contamination Fee shall be no less than $50.00 per occurrence. The Contamination Fees shall be indexed and adjusted annually by the change in the Consumer Price Index (CPI) utilizing the Water, Sewer & Trash Index published by the U.S. Dept of Labor.” SECTION 4. Section 4.3 Rate Adjustment of the Master Agreement is hereby amended to include the following Section 4.3.6.2 Rates Associated with SB 1383 Compliance:
“4.3.6.2 Rates Associated with SB 1383 Compliance: Pursuant to Collector SB 1383 Proposal,

8 compliance with SB 1383 will result in the following rate increase for three (3) years from the Effective Date of this Third Amendment:

Residential Year 1- $29.93
Residential Year 2- $31.40
Residential Year 3- $32.92
Commercial Year 1- $421.39
Commercial Year 2- $442.04
Commercial Year 3- $463.53
The above Residential and Commercial Rates will be annually adjusted by the change in CPI utilizing the Water, Sewer & Trash Index published by the U.S. Dept of Labor.” SECTION 5. Overage Charges, Service Level Increases and Scout Charges The Master Agreement is amended to include the following provisions regarding Collector’s Oversge Charges and Authorized Service Level Changes with Increased Service in accordance with Collector’s September 13, 2024 and October 1, 2024 proposal provisions, as follows:
“Overages:
• Notice of Violation and Warning: Notice of Violation and written warning to be issued with written summary of the rules for placing trash/bulk out on trash day, etc. • Implementation of an Overage Charge: A starting overage charge of $50 per occurrence will be instituted for commercial properties (5 residential units or more) and $25 per occurrence for single family residential properties (less than 5 units). Overage fee charge for commercial properties will increase to $100.00 for second offense and $150.00 for third offense within the same calendar quarter. Overage fee charge for residential properties will increase to $50.00 for second offense and $75.00 for third offense within the same calendar quarter. This measure aims to address issues related to overflowing trash containers, early placement of bulky items, and ensure proper maintenance and cleanliness. You are required to provide a monthly report to the city detailing assessment of an overage charge. • Increased Service Level: Authority is granted to increase the service level in instances where there are three charges within a given calendar quarter. This adjustment will help ensure that service levels align with the needs of commercial and residential properties and maintain the standards we are striving to achieve. You are required to provide a monthly report to the city detailing increases to an existing service level.” Scout Fee. For Customers requiring Scout Service, Contractor may charge a Scout Fee of $9.50 per pickup. The Scout Fee shall be indexed and adjusted annually by the change in the Consumer Price Index (CPI) utilizing the Water, Sewer & Trash Index published by the U.S.

Dept of Labor.”

9 SECTION 6. Reporting. Section 3.22.3 of the Master Agreement, Records and Reports, is hereby amended to include the following new reporting requirements:
(i) Complaints.

Information compiled concerning Customer complaints, along with a brief narrative describing any operational changes made to respond to complaints received and to prevent their reoccurrence in the future, if necessary. (j) Overage Charges.

A list of Customer overage charges assessed per month during the reporting period. (k) Increased Service Level.

A list of Customers assigned to a new service level by Collector as a result of the Customer receiving three (3) or more overage charges during the calendar quarter. (l) SB 1383 Reporting
Within forty-five ( 45) Days after the end of each calendar year, Collector shall provide a SB 1383 annual report to the City covering the most recently completed calendar year.

Such report shall contain the following information:
(i) Container Contamination Reviews. Documentation of Hauler Route reviews conducted pursuant to 14 CCR Section 18984.5(b), as described and in accordance with 14 CCR Section 18995.1, including a description of the process for determining the level of contamination and the number of Route Reviews conducted; (ii) Complaints. Documentation of SB 1383 Regulatory non-compliance complaints that were received and investigated, investigations conducted by Collector in accordance with 14 CCR Section 18995.3, and the number of notices, violations, or targeted education materials issued to Customers for Prohibited Container Contaminants; (iii) Route Reviews. Summaries of Route Reviews, "desk-top" reviews, and notices issued to Customers with Prohibited Container Contaminants; and (iv) Contaminated Containers. Documentation of the number of Containers where the contents were disposed due to observation of Prohibited Container Contaminants.

SECTION 7. Interpretation. In the event of any conflict between this Third Amendment and the Master Agreement, this Third Amendment shall govern. Section headings in this Second Amendment are for convenience only and shall not be used in the interpretation of this amendment. This Third Amendment may be executed in counterparts and/or by electronic signature (e.g. DocuSign). As used herein, “including” and its variants mean “including without limitation.”
SECTION 8. Future Changes. The parties acknowledge that future changes to this Third

10 Amendment or the Master Agreement may be desirable to assist the parties with their respective compliance obligations under applicable new laws and regulations. The parties agree to negotiate any such proposed changes in good faith.

SECTION 9. Affirmation of Agreement; Warranty Re: Absence of Defaults. City and Collector each ratify and reaffirm that their respective rights and obligations arising under the Master Agreement, as amended. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Contractor represents and warrants to City that, as of the date of this Third Amendment, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the going of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Contractor that, as of the date of this Third Amendment, Contractor is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

SECTION 10. Binding Agreement. Except as otherwise set forth in this Third Amendment, the Master Agreement, as amended by way of the First, Second, and now Third Amendment, shall remain binding, controlling, and in full force and effect. Sections 1.4, 3.14, and 4.3 of the Master Agreement notwithstanding, this Third Amendment, together with the Master Agreement, First Amendment, and Second Amendment shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in these documents.

SECTION 11. Conflicts. In the event of any conflict or inconsistency between the provisions of this Third Amendment and the provisions of the Master Agreement, the provisions of this Third Amendment shall govern and control to the extent of the conflict or inconsistency, and no further. (SIGNATURES ON NEXT PAGE)

11 IN WITNESS WHEREOF, the Parties hereto have caused this Third Amendment to be executed on the day and year first appearing above.

CITY OF CUDAHY: CONSOLIDATED DISPOSAL

SERVICE, LLC
By:

Alfonso Noyola, ICMA-CM, City Manager
Date: __________________________________
By: _______________________________
APPROVED AS TO FORM:

By:
_____________________________________
City Attorney Date
Name:

Title:

Date:

12 EXHIBIT “A”

MASTER AGREEMENT

AGREEMENT FOR

SOLID WASTE AND RECYCLABLE MATERIALS COLLECTION SERVICES By and Between

CITY OF CUDAHY,
a municipal corporation,
and
CONSOLIDATED DISPOSAL SERVICE L.L.C.,
a Delaware limited liability company

)

TABLE OF CONTENTS
R E C l T A L S

ARTICLE I

1.1 1.2

1.3 1.4

1.5 1.6
PARTIES; EXCLUSIVE
to the Agreement
RIGHTS; TERM
Parties

1.1.1 1.1.2

1.1.2.1 Representatives of the Parties
Notices

1..2.1

1.2.2 1.2.3

1.2.4 Exclusive Rights; Non-Exclusive

1.3.l

1.3.2 l. 3. 3

1.3.4 Term
Rollout Period
Representations and Warranties

1.6.1 1.6.2

1.6.3 1.6.4

1.6.5 and Service
.·
Rights
of

1.7 Special Provisions Applicable to
City Clerk
City Manager

1.7.1 1.7.2

1.7.3 ARTICLE II

2.1 2 .1.1

2.1.2 2-.1. 3
2 .1.4
2 .1. 5

2.1.6 2.1.7

2.1.8 2.1.9

2.1.10 2.1.11

2.1.12 2.1.ll

2.1.14 DEFINITIONS
-iand
1 2
2 2
2 2
3 3
3 3
3 3
3 4
4 4
4 4
5 5
5 5
5 5
6 6
6 6
6 6
6 6
6 --6
6 7
7 7
7 7
7 7
7 7
7 8
)

)

TABLE OF CONTENTS

R E C I T A L S

ARTICLE I

1.1 1.2

1.3 1.4

1.5 1.6
PARTIES; EXCLUSIVE
to the Agreement
RIGHTS; TERM
Parties

1.1.1 1.1.2

1.1.2.1 Representatives of the Parties
Notices

1.2.1 1.2.2

1.2.3 •

1.2.4 Exclusive Rights; Non-Exclusive

1.3.1 1.3.2

1.3.3 1.3.4
Term
Rollout Period
Representations and Warranties

1.6.1 1.6.2

1.6.3 1.6.4

1.6.5 and Service
..

Rights
of

1.7 Special Provisions Applicable to
City Clerk City Manager

1.7.l

1.7.2 1.7.3

ARTICLE II

2.1 2.1.1

2.1.2 2·.1. 3

2.1.4 2.1.5

2.1.6 2.1.7

2.1.8 2.1.9

2.1.10 2.1.11

2.1.12 2.1.13

2.1.14 ..

DEFINITIONS
and
1 2
2 2
2 2
3 3
3 3
3 3
3 4
4 4
4 4
5 5
5 5
5 5
6 6
6 6
6 6
6 6
6 -6
6 7
7 7
7 7
7 7
7 7
7 8
)

)
2 .1.15
2 .1.16

2.1.17 2 .1.18
2 .1.19
. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .

ARTICLE III

SOLID WASTE AND RECYCLABLE MATERIALS HANDLING SERVICES

3.1 3.2

3.3 · 3 .4

3.5 3.6

3.7 3.8

3.9 3.10

3.11 3.12

3.13 Governing Requirements collector Fee .•.

3.2.1 ..

3.2.2 . . . . . ... . . . . . 3.2.3 . . . ... .

Quantity • • • • • • • • •
Containers . . . -· . . . . . . . . . . . . 3.4.1 Automated Collection- Residential Premises . . . . . . . . . . . . . . 3.4.2 Collector to Provide Containers for Commercial/Industrial Premises .. . 3.4.3 Repair of Containers ......... . Care of Containers ............... . Collection From Residential Premises ...... . 3. 6 .1 Automated Collection Of Solid Waste and-·

3.6.2 Recyclable Materials ......•...

Frequency of Collection - Residential
Premises . . . . . . . . . . . . . .

3.6.3 Residential-Carryout Services ..... . 3.6.4 Residential-Bulky Goods Collection .. . 3.6.5 Holiday Tree Recycling .....•...

Collection From Multi-Unit Residential Buildings
Collection From Commercial/Industrial Premises .. 3. 8 .1 Collect•ion Services ~. -. . . . • . . . . .

3.8.2 Frequency of Collection. . . . . .. 3.8.3 Clean up of Waste Enclosures or Overflowing Bins
City Facilities ... . 3.9.1 ........... .

3.9.2 ....... .

Special Events ... Pick up of Illegally Dumped Materials.

Exclusions . . . . . • . . . . • . . • . .

Community Education and Information; Press
Releases, etc. . .......•. ·-·-·•···

3.13.1 ................. .
3 • 13 . 2 . .. . .. .. . . . . . . . . . . . . . . . . .

3.14 Solid Waste Disposal; Processing of Recyclable Materials ... . 3.14.1 . . . . . . . . . . .. . 3 • 14 . 2 • • • • • • .
3 . 14 . 3 . . . . . . . .

3.14.4........ . ..

3. 15 Equipment . . . 3.15.1 .•..

3.1S.2 ...... .

3.15.3 . . . . . .. .
8 8
8 8
8 8
8 8
8 8
9 9
9 9
10 10
10 10
10 10
11 11
12 12
12 12
12 12
12 12
13 13
13 13
13 13
14 14
14 14
15 15
15 15
15 15

)

3.15.4 . . •

3.16 Collector's Employees; Training.

3.16.l

3.16.2 3.16.3

3.16.4 3.17 Collection Impediments

3.17.1 Rain or Natural Disaster

3.17.2 Infrastructure Renovation.

3.17.3 Street Blocked by Materials .

3.18 customer Service Performance Standards

3.18.1 3.18.2

3.18.3 3.18.4
. . .
3 .18. 5 ;. • • •

3.19 Complaints/Compliments

3.19.1 3.19.2

3.19.3 3.19.4

3.19.5 3.20 Privacy.

3.20.l

3.20.2 3.20.3
. . . .

3.21 Hazardous Waste Notifications and Procedures

3.21.l

3. 21. 2

3.21.3 3.22 Records and Reports

3.22.1 3.22.2

3.22.3 3.22.4

3.22.5 3. 23 Ownership of Solid wa·ste and Recyclable Materials .

3.24 Insurance and Indemnification.

3.24.l ...

3.24.2 3.24.3

3.25 Performance Monitoring and Security.

3.25.1 .. 8 3.25.2
Annual Review of Performance and -Quality of Service

3. 26-.1
. 3.26.2 8 3.26.3
System and Services Review

3.27.1 3.27.2

3.27.3 3.27.4

3.27.5 16
16 16
16 16
16 16
17 17
17 17
17 18

18. 18
18 19
19 19
19 19
19 20
20 20
20 20
20 20
20 21
21 21
22 22
22 22
23 23
23 24
25 25 .
25 25
25 26
26 26
26 26
26 27
27

)

3.28 Mandated Operational Changes; Reopening of
Agreement . . . . . . . . . . . . . . • . . . .

3.28.1 · · ·

3.28.2 ... · · · • • · · •

3.28.3 . . . . . . . · · · · · · · ·

3.29 3 .30
Street Sweeping . . . . . . • . . . . . . . Solid Waste Management Plan . . . . ....

3.30.l ..... · · · · · · · · · · ·

3.30.2 ...... · · · · • · · · · · 3.30.3 . . . . . . . . - · ·

3.30.4 . . . . . . .

ARTICLE IV

4.1 4.2

4.3 4.4

4.5 4.6

ARTICLE V

5.1 5 • .2

5.3 5.4

5.5 RATES, BILLING AND PAYMENT . . Sale of Accessories ..... .

Rates . , • . • • . . . . . . . . . . .

Rate Adjustment . . . . . . . . . . . . 4.3.l Adjustment Procedure •...•.....

4.3.2 Limitations on Rate Increases

4.3.3 Annual C.P.I. Adjustment .... 4.3.4 Inordinate Cost Increase Adjustment . 4.3.5 Rate Adjustment for Tipping Fees •...

4.3.5.1 . . . . . . . . . . . . . . . ..

4.3.5.2 ................ .

4.3.6 Rate Adjustment From Changes in Service
Requirements ..........•...

4.3.7 Tipping Fees as Portion of Overall Rate.

Billing . . . . . . . . . • • . . .

4.4.1 . . . . . .. ·

4.4.2 . . . . . .... .

4.4.3 . . . . . . . . . ... · .

4.4.4 . . . . . . . . .... ·

4.4.5 . . . . . . . . . . . ..

Late Charges . . . . . . . . . . . . . Delinquent Accounts .

BREACH AND TERMINATION . . . . . .

Default; Notice . 5.1.1 ......... ~ ........ .

5.1.2 ...

5.1.3 . . . . . . . . . . . . . . ..

Institution of Legal Actions ... Notice; Response; Resolution; Appeal 5. 3 . 1 Not ice; Response . . . . . . . . . . 5.3.2 Review by City Manager: Notice of Appeal

5.3.3 City Council Hearing ....... . 5.3.4 City Council Determination .. .

5.3.5 Continued Performance by Collector .. . Termination for Cause . Liquiqated Damages

5.5.1 . . ... .

5.5.2 . . • ..... .

5.5.3 .. .
27 27
27 27
27 28
28 28
28 28
28 29
29 29
29 29
29 29
30 30
30 30
31 31
31 31
32 32

3.2 32
33 33
33 33
33 33
34 34
34 34
35 35
3G
36 36
37 37
38 38

...
)

5.5.4 . . . . . .... · · · · · · · · · • · ·

5.6 Cumulative Rights ........... • .... . s. 7 City's Additional Remedies . . . . . . .

ARTICLE VI

6.1 6.2

6.3 6.4
. ASSIGNMENT
Assignment of Agreement •......•••
Transfer of Stock or Interest . Bankruptcy . . . . . • . . . . . . . . . . Eligibility for Assignment or Transfer

6.4.1 .............. .

6.4.2 .................. .
. . . . . . . . . . . . . . .
. .

ARTICLE VII

7.1 7.2

7.3 7.4

7.5 7.6

7.7 7.8

7.9 7.10

7.11 7.12

7.13 7.14

7.15 EXHIBIT A

EXHIBIT B
MISCELLANEOUS . . . . Independent Contractor .......•
Construction ...... . Calendar Days; Working Days ..... . Severability .•••.....••..

Captions and References ....... . Time of the Essence .. . No Oral Modifications .... . Force Majeure . .... .

Property Damage •....

Law to Govern; Venue
Fees and Gratuities.

Attorney's Fees .. . Amendments .... . Joint Drafting .... . Execu~Aon in Counterparts . . . . . . . . . . . .
. . . .
. . . . . . . . . . . .
. . . .
. . . .

CITY OF CUDAHY COLLECTOR FEE QUARTERLY STATEMENT

MAXIMUM INITIAL RATES
38 38
38'
39 .
39 40
40 40
40 40
40 40
40 40
41 41
41 41
41 41
42 42
42 )
42 42
42_

AGREEMENT FOR

SOLID WASTE AND RECYCLABLE MATERIALS HANDLING SERVICES

THIS AGREEMENT FOR SOLID WASTE AND RECYCLABLE MATERIALS HANDLING SERVICES ("Agreement") is entered into as of the 15th day of December, 1998 by and between the CITY OF CUDAHY, a municipal corporation, organized and existing under the laws of the State of California ("City") and CONSOLIDATED DISPOSAL SERVICE L.L.C., a Delaware limited liability company
(•collector•), as follows:

This Agreement is entered into on the basis of the
following facts, understandings and intentions of the parties:

A. The Legislature of the State of California, by
enactment of the California Integrated Waste Management Act of 1989 (Public Resources Code Section 40000, et seq.; hereinafter the "Act") established a solid waste management process which requires cities and other local jurisdictions to implement source reduction, reuse and recycling as integrated waste management practices; and B. The Act authorizes and requires local agencies to
make adequate provisions for solid waste handling within their jurisdictions; and
C. Pursuant to Sections 40059 and 49300 of the Public
Resources Code, City is authorized to enter into an exclusive agreement for the collection and disposal of solid waste; and D. City and Consolidated Disposal Service, Inc .•
Collector's predecessor in interest, entered into that certain "Contract for Garbage, Rubbish and Waste Collection and Disposal(sic) from Residential Premises"·dated August 15, 1988, which expires on December 30, 1998; and · . .. . ·- . . ' . - E. Collector and City desire to implement a system of automated collection of solid waste and recyclable materials in the City, to more efficiently provide for the collection of such materials, and to ·facilitate achievement of City's obligations pursuant to the Act; and
F. Pursuant to this Agreement, City desires to engage Collector as an independent contractor to exclusively provide automated solid waste and recyclable materials collection services in the City. Collector shall furnish all personnel, eqµipment, ~n~ ~~PPlies n_ec~s~ary _to c:ollect, pickup, or otherwise remove and dispose.of all solid waste and recyclable Jll20S Clll0•ODD02 gv 1094531.3 13)

)
materials, as defined herein, generated or accumulated by all residential and commercial/industrial users or customers within the City, except as otherwise specifically provided fterein; and G. Collector has represented to City that it has the
experience, responsibility, and qualifications to implement the automated collection of solid waste and recyclable materials, and to arrange with residents and other entities in the City of CUdahy for the collection, safe transport, processing and disposal of solid waste and recyclable materials in compliance with applicable laws; and
H. City and Collector are mindful ·of the provisions
of the laws governing the safe collection,.transport, recycling and disposal of solid waste, including the Act, RCRA, and CER~; and
I. City and Collector desire to leave no doubts as to
their respective roles and to make it clear that by entering into this Agreement, City is not thereby becoming a •generator• or an "arranger" as those terms are used in the context of CERCLA Section 107(a)(3), and that it is Collector, not City, which is "arranging for• the collection of solid waste and recyclable materials from residential and commercial/industrial premises in the City, the transport of same for disposal, the composting of green waste and the recycling of recyclable materials; and J. There are no places within the City where
landfills are located, or which are suitable for the siting of. a landfill, and solid waste must therefore be exported from the City.

ARTICLI I
PARTIES; EXCLUSIVE RIGHTS; TERM

1.1 Parties to the Agreement. The parties to this
Agreement are:

1.1.1 City: The City of Cudahy, a municipal corporation, having its principal office at 5220 Santa Ana.

Street, CUdahy;-•CA-- 90201. ~ -- - ···
. 1.L2 Collector: Consolidated Disposal Service,
L.L.C., a Delaware limited liability company, having its place of business at 12949 Telegraph Road, Santa Fe Springs, California 90670.

1.1.2.1 The sole member of Consolidated
Disposal Service, L.L.C. is Republic Services, Inc., a Delaware corporation. Collector represents that it will continue to exist as a wholly-:owne.d. -,µ,bsid,iiiry_ of Repul;>iic. Services, Inc. • The riame °Corisolldated Dispos·ai-· Service-- shall be. used for. all 911205 C1130•0DOOZ gv 1094531.3 (31 - 2 -
)

)
correspondence, billing statements,·directory listings,· references, signs, vehicle identification, etc ..

1.2 Representative§ of the Parties and Service o{
Notices. The representatives of the parties who are primarily responsible for the administration of this Agreement, and to whom formal notices, demands and communications shall be given, are as follows:

1.2.1 The principal representative of City shall
be:
shall be:

City Manager
City Hall
5220 Santa Ana Street
P.O. Box 1007
CUdahy, CA 90201
(323) 773-5143
(323) 771-2072 / FAX

1.2.2 The principal representative of Collector
Mr. Dave Ault
Executive Director/Franchise
Administration
Consolidated Disposal Services
P.O. Box 309
1131 North Blue Gum Street
Anaheim,- California 92815
· -···· ·(·71.)· 238~3300
(714) 238-3309 / FAX ·- ·

1.2.3 Formal notices, demands and communications
to be given hereunder by either party shall be made in writing and shall be effective upon the date of personal delivery or, in the case of mailing, on the date of delivery or attempted delivery as shown on the U.S. Postal Service certified mail return receipt.

1.2.4 If the name of the principal
representative designated to receive the notices, demands or communications, or the address of such person-, - is changed, - written notice.shall be given within five (5) working days of the change.

1.3 Exclusive Rights; Non-Exclusive Rights.

1.3.1 Subject to the terms and conditions of
this Agreement, and applicable state laws, City hereby grants and issues to Collector the exclusive authority, right and privilege to collect, pick-up, gather, remove- and dispose- -of all Solid Waste and Recyclable Materials gerferated or accumulated at all 911205 C1130•00002 gv 1094531.J (31 - 3 -

)
Residential Premises and Commercial/industrial Premises within the City, for the term of this Agreement, unless e~rlier terminated as provided herein.

1.3.2 Pursuant to Public Resources Code Section
49520, Collector's exclusive rights hereunder are subject to the limited continuation rights of certain qualified solid waste enterprises that have previously been authorized by permit to provide Solid Waste and Recyclable Materials handling services for Commercial/industrial Premises in the City. These limited continuation rights shall expire on February 9, 2000 as to MultiUnit Residential Buildings, and on October 31, 2003 as to Commercial/industrial Premises that are not Multi-Unit
Resi_dential Buildings. . ... _ . .

1.3.3 Collector's exclusive rights hereunder
shall be further subject to the rights of state facilities to use a solid waste enterprise other than Collector.

1.3.4 Collector waives any right it may have to
challenge the terms of this Agreement under federal, state or local law. Collector waives any right or claim to provide Solid Waste and Recyclable Materials handling services in the City under any prior grant of franchise, contract, license or permit, including but not limited to the 1988 Agreement, and any right under Section 49520 of the Public Resources Code. Except as expressly set forth in Section 1.5 regarding the Rollout Period, the 1988 Agreement is of no further force or effect.

1.4 I§Im. The term of this Agreement shall be for ten
(10) years (the "Initial Term") -r commencing January 1, 1999. · On January 1, 2000, and each year thereafter the term of this Agreement shall be automatically extended one (1) additional year, so that the remaining term shall continue to be ten (10) years. In no event shall the term, including any extension thereof, at any time exceed a total period of ten (10) years. Should either party desire that the automatic renewal and extension provision be terminated, such party shall give the other written notice of termination. Any such notice shall serve only· to terminate the automatic one (1) year renewal and extensi"on provision, and this Agreement shall remain in effect for the balance-of. the term then outstanding. Notwithstanding. the foregoing,· the unexcused failure or refusal ··of·-·collectc:if-··to · perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City, to terminate this Agreement for cause in accordance with the procedures elsewhere contained herein.

1.5 Rollout Period. This Agreement reqUires a
transition from the manual collection system for Residential Premises used in the City as of the date of this Agreement, with no collection of Recyclable Materials, to a fully automated c:oll4!ction ay.atem for Solid Waste and Recyclable Materials.

Collector shall ·•rollout• the-new· services required-by this eat2D~ t-1a10.DDDD2 av 1094511.l IJt - 4 -
\

)
)
Agreement such that the Automated Collection system for Solid Waste and Recyclable Materials is implemented throughout the City on or before July 1, 1999. For purposes of this Section 1.5, "implemented throughout the City" means all Residential Premises, and Multi-Unit Residential Buildings which elect to not receive commercial bin service, in the City are being provided by Collector with the Automated Collection system required by this Agreement. During the Rollout Period, Collector shall distribute the containers required by this Agreement to all Residential Premises, and Multi-Unit Residential Buildings that elect not to receive cpmmercial bin service, and implement the public education program developed pursuant to Section 3.13. During the Rollout Period, Collector shall continue ·to provide collection services for Solid Waste according to the terms of the 1988 Agreement, to those customers who are not yet.receiving the.

Automated Collection services required by this Agreement.

1.6 Representations and Warranties. As a material
inducement to City entering into this Agreement, Collector makes the following representations and warranties, each of which is material and is being relied upon by City in entering into this Agreement:

1.6.l Collector has the experience,
responsibility, and qualifications to implement the Automated Collection of Solid Waste and Recyclable Materials from Residential Premises and from those Multi-Unit Residential Buildings that elect to receive Automated Collection service in lieu of commercial bin service, and to arrange with residents and other entities in the City for the collection, safe transport, processing and disposal of Solid Waste and Recyclable Materials in compliance with applicable laws. - _____ . - -- --

1. 6. 2 The Automated Collection system described
in this Agreement will be implemented throughout the City on or before July 1, 1999, in accordance with the provisions·of Section

1.5. 1.6.3 Collector will collect Solid Waste and
Recyclable Materials from all City Facilities, special events, and from illegal dumping at no charge to City or service recipients in the City, in accordance with the provisions of Sections 3.9, 3.10, and 3.11. As set forth. in Section 3.21.i, however, Collector has no obligation to collect Hazardous Waste pursuant ~o this Agreement.
- 1.6.4 Collector will not increase the rates
charged to Residential Premises prior to July 1, 2000.
l. 6. 5 Collector agrees to implement all
provisions of City's SRRE and HHWE~ as directed by City pursuant to this Agreement, such that City shall achieve a diversion rate C?.f ~Q.'-_ by Janµ~ry l, 2_QQO,._ and any diver~_ion -~atE!'-_whi~h mc1y subsequently be required by the Act or any successor statute. tl1205 C1130-00002 gv 10t4531.3 (3) - 5 -

1.7 Special Provisions Applicable to City Manager and
City Clerk.

1.7.1 The City Manager shall expeditiously
deliver to the City Council copies of all formal notices, demands and communications received from Collector.

1.7.2 Commencing in August, 2000, and every
August thereafter, the City Clerk shall place an item on the agenda of the regular City Council meeting which would allow the Council to order the setting of a public hearing for purposes of the annual review.of performance·and quality of service-pursuant• to Section 3.26, or •n annual systems and services review pursuant to Section 3.27, or both such reviews.

1.7.3 The provisions of this Section 1.7 are for
the exclusive benefit of City. Collector acknowledges that failure of the City Manager or City Clerk to comply with the provisions of this Section 1.7 would not harm Collector in any manner. Failure of the City Manager or City Clerk to comply with the provisions of this Section 1.7 does not entitle Collector to any remedy whatsoever, nor does it limit the ability of City to conduct the annual review of performance and quality of service, or the annual systems and services review.

ARTICLB II
· - DBPJ:NITI'.ONS

2.1 The definitions set forth in Section 12-2.1 of
Chapter XII of the Municipal Code are incorporated herein by this reference. Whenever any term used in this Agreement has been defined by Section 12-2.1 of the Municipal Code or Division 30, Part 1, Chapter 2 of the California Public Resources Code (the Ac-t), the definitions in Section 12-2 .1 or the Public Resources Code shall apply unless the term is otherwise defined in this Agreement. In addition, the following definitions are hereby incorporated into this Agreement: . . . ~- __ . ___ . _ . .. - . ..

2.1.1 "Automated Collection• or "Fully Automated
Collection System• shall mean the collection of Solid Waste and Recyclable Materials using Standard Residential Containers and vehicles designed so that Collector's employees are not required to leave the vehicle to collect the Solid Waste or Recyclable Materials.

2.1.2 "CERCLA" shall mean the Comprehensive Environmental Response, Compensation and Liability Act, 42 u.s.c. ) Sect;_ons: 960~ __ ._ _Qa_.
tll205 Clll0-00002 gv lOtCSJl.l (lJ - 6 -

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2 .1. 3 "City Facilities" shall mean City Hall,
all public parks owned or managed by City, the City maintenance yard, and any other facility used primarily by City that may be constructed or leased during the term of this Agreement.

2.1.4 "CIWMB" shall mean the California
Integrated Waste Management Board, or any successor regulatory board or agency.

2.1.s "Collection Costs" shall mean, for
purposes of Section 4.3, all costs incurred by Collector, including the allocation of Collector's overhead, for the collection and transportation of Solid Waste and Recyclable Materials to a disposal facility, except for the tipping fees or other costs charged for the actual disposal by a disposal facility. . .

2.1.6 "Commercial Rates" shall mean, for
purposes of Section 4.3, the rates charged by Collector to Commercial/industrial Premises, including those Multi-Unit Residential Buildings that receive commercial bin service and not Automated Collection service.

2.1.7 "Control• shall mean, for purposes of
Section 6.2 of this Agreement, the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a corporation, company, partnership, joint venture, or other association.

2.1.8 "C.P.I." shall mean the Consumer Price
Index for All Urban Consumers in the Los Angeles-Anaheim Riverside area. · . .. . . - .

2.1.9 "Diversion Rate" shall mean the
calculation, in the manner required by Public Resources Code Sections 41780, tt seq., of the percentage of total Solid Waste generated in the City during a twelve month period that was diverted from landfill disposal or transformation in the same twelve month period.

2. 1 .10 "Environmental Statutes"· shall mean, for
purposes of this Agreement, 42 united States Code sections 9600; tt seq~, ·42 U.S.C. Sections 6901 et'. seg~ ;· California Health and Safety Code Sections 25300, tl seg., or successor statutes.

2.1.11 "Gross Receipts" means any and all monies
or compensation in any form received from any and all service recipients for services provided pursuant to this Agreement, not including the marketing of Recyclable Materials.

2.1.12 "Household Hazardous Waste Element" or
"HHWE" means the element required by Public Resources Code ~~ction41500 .. city adopted a Household Hazardous Waste Element on March 23rd, 1992.
,11205 Cl8J0•00002 gv 10,4Sll.J fl) - 7 -

2.1.13 "Municipal Code"· shall mean the Cudahy
Municipal Code.

2.1.14 "RCRA" shall mean the Resource
Conservation and Recovery Act, 42 u.s.c. Sections 6901 ~ §gg ..

2. 1. 15 "Residential Rates" shall mean, for
purposes of Section 4.3, the-rates charged by Collector to Residential Premises and to those Multi-Unit Residential Buildings that receive Automated Collection service, in lieu of commercial bin service.

2.1.16 "Rollout Period• shall mean the period
between the date of this Agreement and June 30, 1999.
2 .1.17 "Source Reduction and Recycling Element"
or 11 SRRE" means the-element required by Public Resources Code Section 41000, tt u.g. City adopted a Source Reduction and Recycling Element on March 23rd, 1992.

2.1.18 "Tipping Fees" shall mean, for purposes of
Section 4.3 of this Agreement, the cost charged by a landfill operator to disp~se of one (1) ton of municipal Solid Waste from Residential Premises, not including any special wastes [such as rubber, concrete, Bulky Goods, etc.].

2.1.19 "1988 Agreement" shall mean the agreement
referenced in Recital "D" of this Agreement.

AR'l'XCLB IXX

SOLID WASTB AND RBCYCLABLB MATBRIALS HANDLING SBRVICES

3.1 Governing Requirements. Collector shall acquire and maintain all necessary permits· and licenses, and shall comply with all provisions of this Agreement, the Municipal Code (including, but not limited to, Chapter XII, which is
incorporated herein by this reference), and all other applicable laws, rules and implementing regulations, as they, from time to time, may be amended, specifically including, but not limited to the Act; CERCLA;a RCRA, and the Americans With Disabilities Act c2a u.s.c. §§ 12001, · et seq,).· ·· · · - ·

3.2 Collector Fee

3.2.1 Collector shall pay to City a Collector
Fee of Eight percent (81) of Collector's gross receipts. The Collector Fee shall be in lieu of all City business license and City business permit fees pertaining to the collection of Solid Waste or Recyclable Materials.
tl1205 Clll0-00002 gv 10t45ll.l (lt - 8 -

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3.2.2 The Collector Fee from
Commercial/industrial Premises shall be payable quarterly, on or before the 20th day of the month following the end of each preceding calendar quarter. Each such payment shall be
accompanied by an accounting, substantially in the form attached hereto as Exhibit "A", which sets forth Collector's gross receipts collected from Commercial/industrial Premises during the preceding calendar quarter. The Collector Fee from Residential Premises shall be collected by City pursuant to Section 4.4.1.

3.2.3 No acceptance of any payment by City shall
be construed as an accord that the amount is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim City may have against Collector·for any · additional sums payable -under the provisions · of this Agreement~·. - All amounts paid shall be subject to independent audit and· recomputation by City. If, after-- audit, such recomputation indicates a Collector Fee underpayment, Collector shall pay to City the amount of the underpayment within ten days of receipt of written notice from City that such is the case. If, after audit, such recomputation indicates a Collector Fee underpayment of more than three percent (3t), Collector shall reimburse City for all reasonable costs and expenses incurred in connection with the audit and recomputation, within ten days of receipt of written notice from City that such is the case. If, after audit, such recomputation indicates a Collector Fee overpayment, City shall notify Collector in writing of the amount of the overpayment, less costs and expenses incurred in connection with the audit and recomputation. Collector may offset the payment or payments (as appropriate) next due following receipt of such notice by the amount specified therein. ·

3.3 Quantity. Collector shall collect all Solid Waste
and Recyclable Materials generated and presented for collection at each Residential Premises and Commercial/industrial Premises in conformity with the provisions of this Agreement, and at all City Facilities.

3.4 Containers.

3.4.1 Automated Collection- Residential
Premises. Collector shall provide the initial containers and any replacement containers to all Residential: Premises, and to those Multi-Unit Residential Buildings to be served with Automated Collection. Collector shall not charge for the delivery of containers. Collector shall provide: one 95 gallon $tandard residential container for Solid Waste; and one 65 gallon standard residential container for commingled Recyclable Materials. to each unit in the Residential Premises, and to each unit in those Multi-Unit Residential Buildings to be served with Automated Collection. Upon request by the customer, Collector shall provide one ·65 gallon standard residential container for Solid Waste in lieu of the 95 gallon container.
tl1205 Clll0-00002 gv 10t45Jl.3 (l) - 9 - Page 291 of 434 )
Any residential service custo~e~ .~ay request in writing to Collector, and.Collector shall provide: additional 65 or 95 gallon containers for Solid Waste at a rate not to exceed that set forth in Exhibit 11 B"; and up to two (2) additional 65 gallon containers for Recyclable Materials without additional charge.

In the event delivered standard residential containers
are lost, stolen, damaged or destroyed, Collector shall deliver to the customer a replacement container(s) within one week of· request by the customer or City, at no charge to the customer or City for eithe~ the container or its delivery.

The color and manufacturer of the containers shall be
subject to approval by the City Manager. City's name and logo, and Collector's phone number, shall be embossed or affixed.on all standard residential containers. Collector shall not place any labels or embossments on the standard re-sidential containers without prior approval by City. ·

3.4.2 Collector to Provide Containers for
commercial/Industrial Premises. Collector shall make
arrangements with each commercial/industrial customer concerning the size and number of Solid Waste container(s). Each such container or bin shall be a "standard commercial/industrial solid waste container,• as defined by Municipal Code Section 12-2.1.

Collector shall be responsible for the general repair and upkeep of all such containers. Containers shall be repainted a minimum of once every two years or as needed to remain attractive and clean and kept in a serviceable condition at all times. ~. 4. 3 Repair of Containers. Repairs to
containers, including replacement of wheels, lids, hinges, axles and handles, shall be the responsibility of·Collect;or.- Colrector· shall repair or replace all damaged containers upon viewing the damaged container, and in no event later then one week after request therefore from City or the customer.

3.5 Care of Containers. All containers shall be
replaced upright, where found. Neither Collector nor Collector's· agents and/or employees shall in any way break, damage or roughly handle the containers. ·

3.6 Collection From Residential Premiseg.

3.6.1 Automated collection Of Solid·Waste and
Recyclable Materials. Collector shall provide fully Automated Collection of Solid Waste and Recyclable Materials from Residential Premises within the City. Collector shall furnish all labor, supervision, materials, permits, licenses, and equipment necessary to provide such service.
tl120S Clll0-00002 gv 1094531.l Ill - 10 - Page 292 of 434 )

3.6.2 Frequency of Collection - Residential
Premises. Collector shall collect all residential Solid Waste and Recyclable Materials on a regular schedule which will specify the day during which collection will occur in City. All residential Solid Waste and Recyclable Materials shall be collected once each week, on the same day during each week, except as'otherwise provided herein. The collection schedule for 1999 shall be the same as for 1998, unless a change is approved in writing by the City Manager. Not later than November 30 of each year, commencing in 1999, Collector shall submit to the City Manager any changes proposed for its collection schedule for the ensuing calendar year. The schedule shall indicate all regularly scheduled collection days which fall on a holiday and the collection day which is proposed to be substituted therefor so as to ensure that collection shall take place once each week. The schedule is subject to the City Manager's approval. In the event of any changes proposed by Collector and approved by the City Manager, Collector shall mail a written notice to all customers of such schedule not later than December 31 of the year prior to the year in which the schedule changes will take effect.

3.6.3 Residential-Carryout Services. Collector
shall provide carry-out services for those individuals who are unable to place their Solid Waste and Recyclable Materials containers for collection in the usual manner due to severe physical handicap. Collector shall not receive special payment for this service.

3.6.4 .Residential-Bulky Goods Collestion.

Collector shall pr9vide curbside collection of bulky items such as_couches, rugs, refrigerators, water. heaters, up to four tied bundles of tree- trimmings· not to exceed 72 11. in length, 48" in diameter, or 60 lbs., and other items of Solid Waste not suitable· for Automated Collection due to their size or weight, as follows:

Collector shall provide once a week "Free on
Wednesdays" collection of all Bulky Goods placed for collection at the curb, at no charge to City or Residential Householders or the owners or occupants of Multi-Unit Residential Buildings, and without the customer being required to call ahead for collection.

The collection shall occur on Wednesdays, or such other day as may be agreed to by Collector and the City Manager.

In addition, upon request·, each resident shall be
provided on demand collection of Bulky Goods. Requests by residents for such collections shall be made directly to Collector, who shall provide satisfactory telephone message receiving, transmitting and response procedures, and who shall be responsible for maintaining a log of such large item collections.

Requests for bulky item collection service shall be fulfilled within a reasonable time, but no more than five (5) days after such request is received. On demand collections shall be provided at a cost not to exceed that set forth in Exhibit •B11 • tll205 ClB)O-O0002 !JV 1094531.3 (3) - 11 -

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Upon request by the City .ManageJ", .. Collec~or_· shall collect Bulky Goods illegally dumped on City streets. Such- . collections shall be made twenty-four (24) hours after telephone request by the City Manager. Collector shall bill the property owner for the costs of collection, including any administrative costs imposed by City.

Bulky Goods collected by Collector may not be
disposed of until the following hierarchy has been followed by Collector:
a. Reuse as is (if energy efficient) b. Disassemble for reuse or Recycling c. Recycle . d. Disposal.
3".6.5 Holiday Tree Recycling. Collector shall
collect, transport and recycle as Green Waste all Holiday trees which are placed for collection on regular collection days, from all Residential Premises and Multi-Unit Residential Buildings within the City, during the period beginning on December 26 and ending 6:00 p.m. on the second Saturday in January.

3.7 collection From Multi-unit Residential
Buildings. Collector shall provide the same level, type, and frequency of collection services provided Residential Premises, including but not limited to the provision of containers pursuant to Section 3.4.1, to all Multi-Unit Residential Buildings that request such service. Collector shall provide Bulky Goods collection pursuant to Section 3.6.4 to all Multi-Unit
Residential Buildings, regardless of whether the Multi-Unit Residential Buildings are receiviQg Automated Collection or .. ~ commercial bin service·~ .. ~ ·· - · ··

3.8 Collection From Commercial/Industrial Premises.

3.8.l Collecti9n Services. Collector shall
furnish all labor, supervision, materials, permits, licenses, and equipment necessary to provide Solid Waste and Recyclable Materials collection from Commercial/industrial Premises within the City. .

3.8.2 · Frequency of Collection.-.- -collector ··.
shall make arrangements with each commercial/industrial customer concerning the size of Solid Waste container and .. frequency of collection.
,1120s c1110-00002 av 1ott531.3 131 - 12 - Page 294 of 434 )

3.8.3 Clean up of Waste Enclosures or
overflowing Bins. Collector shall exercise all reasonable care and diligence in collecting Solid Waste and Recyclable Materials, and shall at Collector's sole expense, clean out all overflowing bins or waste enclosures within twenty-four (24) hours of notification by City. If the situation dictates and with the approval of the City Manager, Collector may charge the customer for the actual costs of clean up, or for increased service levels.

3.9 City Facilities.

3.9.l Collector shall collect and dispose of
all Solid Waste and Recyclable Materials from all City
Facilities. Collector shall provide each City Facility with sufficient bins and other containers, as determined by the City Manager, for the collection of Solid Waste and Recyclable Materials. Collector shall provide separate bins for Green Waste at all public parks.

3.9.2 All services provided pursuant to this
Section 3.9 shall be provided at Collector's expense, with no charge to City, and shall not- be included in the rates charged to service recipients in the City.

3.10 Special Events. Upon request, collector shall
provide Solid Waste and Recyclable Materials collection to special events conducted by City, at Collector's expense, with no charge to City. Such services shall include delivery, placement, removal and disposal of all wheeled 9arts ~n~_pins as needed-for_ each event, signed in ~uch a way as to indicate their use, subject to City Manager approval. The number of bins and containers shall be adequate to allow convenient Solid Waste and Recyclable Materials disposal for event participants, as determined by the City Manager. If, in the discretion of the City event coordinator, additional bins or containers are needed, Collector shall immediately deliver the requested additional bins or containers. The bins or containers shall be delivered the morning of the event and placed with direction from the City event coordinator. Collector shall provide Solid Waste and Recyclable Materials collection the day of the event, and shall remove containers by the end of the same day the event is finished if possible, or prior to noon on the next working day.

3.11 Pick up of Illegally Dumped Materials.

Collector agrees, at no additional charge, to provide on-demand pick-up of illegally-dumped Solid Waste and Recyclable Materials within one (1) working day of City's request.

3.12 Exclusions. Nothing contained herein shall be
deemed to affect the exclusions set forth in Sections 12-6.1 et seg. of Chapter XII of the Municipal Code. -
981205 Cl830•00002 'i1V 1094S38.3 (31 - 13 - Page 295 of 434 )

3.13 community Education and Information; Presa
Releases. etc.

3.13.l Collector shall develop and implement a
public education and information program in order to explain the transition to Automated Collection, maximize participation in the residential recycling effort, and provide information on the availability of Bulky Goods services and other special collection services, as well as on the complaint resolution procedure set forth in Section 3.19. The public education and information progr.am may include, without limitation, media advertising, contests, and community Jnvolvement programs. The public education and information program shall include methods of intensive outreach during the Rollout Period, as well as periodically (no less often then annually) thereafter, and methods of informing customers of available services at the time they apply for service. The various elements of the public education and information program shall be reviewed and approved by the City Manager prior to implementation, and not later than ninety (90) days after execution of this Agreement. The direct costs of implementing the program shall be borne by Collector.

3.13.2 All press releases, reports, or other
documents prepared by Collector for :release to the p·ublic, the CIWMB, or any other public agency, including but not limited to those relating to the Automated Collection system, or to City's SRRB, HHWE, and Diversion Rate, shall be subject to the prior review and approval of the City Mana~er.

3.14 Solid Waste Disposal; Processin9 of Recyclable·
Materials.

3.14.1 Collector shall dispose of all collected
Solid Waste at Collector's expense and in accordance with all state, federal and local laws and regulations. In accordance with and subject to the provisions of Article IV hereof, the cost of disposal will be included in the rates charged by Collector hereunder. City may require Collector to dispose of all Solid Waste and Recyclable Materials collected in City at a site designated by the City Council. If City exercises its right to require disposal at a designated site, rates will be subject to immediate adjustment pursuant to Article Iv.. . . . . -··• ..... •- .. ---•· ... ·---·• .. . ..

3.14.2 Except as set forth in Sections 3.14.3
and 3.14.4, Collector shall deposit all Solid Waste collected in the City at landfills which have been properly permitted by the Regional Water Quality Control Board, which are classified as Class 3 landfills (landfills designated to receive only municipal solid waste), and.which are not on or being considered for inclusion on a state or federal Superfund list. Alternatively, Collector may deposit the Solid Waste collected in the City at transfer stations, waste to energy facilities or resource recovery facilities which have been properly permitted and which are not oil ·or being considered fcir inclusion on a state or ,,1205 0130-00002 gv 10,4531.3 (JJ - 14 - Page 296 of 434 )
federal Superfund list. Collector shall·have an affirmative duty to, annually or, if reasonably warranted, more frequently, obtain copies of permits issued for all disposal facilities at which it disposes of City's waste, inspect all such facilities, and check with regulatory agencies to ascertain the fitness of such facilities to accept waste, including whether such facility is on a state or federal Superfund list, or is being considered for inclusion on such a list. Failure to conduct such due diligence, or disposal of Solid Waste collected in the City in violation of this Section 3.14.2, to the extent it causes liability or damage to City, shall tr~gger Collector's obligation to indemnify City (pursuant to Section 3.24.2), including for liability under the Environmental statues.

3.14.3 Commencing July 1, 1999, all Solid Waste
and Recyclable Materials collected from Commercial/industrial Premises, and all-Recyclable Materials collected from Residential Premises, shall be transferred to a Material Recovery Facility (MRF) which is properly permitted by local and state permitting agencies and otherwise complies with applicable federal, state, and local laws and regulations. The parties contemplate an increase in the Commercial Rates pursuant to Section 4.3 in order to implement·this provision as to Commercial/industrial Premises.

3.14.4 Collector shall deliver all source
separated Green Waste to a legitimate composting or alternative fuel facility, or for use as alternative daily cover at an approved landfill, such that City receives credit in calculating its Diversion Rate for having diverted the Green Waste from disposal in a landfill or transformation facility. - -
3 .15 Equipment·:·

3.15.1 Collector warrants that it shall provide
an adequate number of vehicles and equipment for the collection, disposal and transportation services for which it is responsible under this Agreement.

3.15.2 To protect peace and quiet in
residential areas; the noise level generated by compaction vehicles using compaction mechanisms during the stationary compaction process shall not exceed eighty-five (85) decibels at a distance of ·twenty~five ·c-2s) ·feet- from the collection vehicle measured at an elevation of five (5) feet above ground level.

Upon request of the City Manager, but not more often than annually, Collector shall submit to City a certificate of vehicle noise level testing of all vehicles by an independent testing entity.

3.15.3 All equipment used by Collector to
perform work under this Agreement shall conform to the highest industry standards and shall be maintained in a clean and efficient condition. ·All motor vehicles used in implementing this Agreement shall eornply with applicable provisions of the 911205 C1830-00002 !JY 1094531.3 (3t - 15 - Page 297 of 434 Municipal Code, including but not limited to Sections 12-5.1 tl seg. The current certificates generated from the bi-annual California Highway Patrol inspections of each vehicle shall be submitted to the City Manager at the time of execution of this Agreement, and bi-annually thereafter, commencing January 30, 2000, throughout the Agreement term. All vehicles and bins used to perform this Agreement shall be kept clean, in good repair and will be uniformly painted to the satisfaction of the City Manager. All vehicles shall be cleaned, both inside and out, not less than once weekly. Any Solid Waste or miscellaneous debris dropped or spilled in collection, transfer or transportation shall be immediately cleaned up by Collector. A broom and a shovel shall be carried at all times on each vehicle for thia purpose.
3,15.4 Collector shall not store any vehic1e on
any public street·or other property in the City.

3.16 Collector's Employees; Training.

3.16.1 During the life of this Agreement,
Collector shall employ sufficient personnel qualified by reason of education, training and experience to discharge adequately the services agreed to be performed by Collector pursuant to the terms of this Agreement. Collector shall provide service of the highest quality at all times, and personnel retained to perform this Agreement will be temperate, competent, and otherwise fully qualified to fulfill the obligations of Collector.
3 .16. 2 All employees of Collector performing
So+id Waste and Recyclable Materials collection services under this Agreement shall be dressed in clean uniforms with suitable identification, and no portion of this uniform may be removed while working. Uniforms ~ust be approved by,the City Manager.

3.16.3 Collector shall not discriminate during the performance of this Agreement against any employee or applicant for employment because of the employee's or applicant's race, religion, national origin, ancestry, sex, age, disability, marital status, or sexual orientation.

3.16.4 Collector shall provide regular and
continuing training to· its personnel,_ including .but not limited to safety training and customer service training, to insure that the highest quality of service is provided at all times.

Collector shall also conduct yearly training programs for all of its waste collection employees, to instruct them on:
(a) determining what is Hazardous Waste; (b) being aware of and locating, if possible, Hazardous Waste items when undertaking collection of Solid Waste and Recyclable Materials in the City; (c) following proper procedures by tagging Hazardous Waste items as "hazardous - special handling required"; (d) advising ) customera of t_he various .alternat_ives for proper disposal; and 911205 Clll0-00002 gv 1094531.3 (3) - 16 - Page 298 of 434 )
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(e) proper nspill response" procedures when Hazardous .Waste is observed anywhere in the City.

3.17 Collection Impediments.

Collector shall provide regularly scheduled Solid Waste and Recyclable Materials collection service to each Residential Premises and Commercial/industrial Premises in the City. A number of collection impediments may require special effort to accomplish this level of service. If this special effort requires the ~istribution of containers, it shall be the responsibility of Collector to distribute them. When Solid Waste or Recyclable·Materials are not collected from any service recipient, Collector shall notify the service recipient of the reason for noncollec~~-on by notice attached to the ~ontainer or other non-collected item, and shall notify the City Manager in writing, within twenty-four (24) hours, why the collection was not made.

3.17.1 Rain or Natural Disaster - Some streets
become impassable during periods of heavy or prolonged rain, or due to a natural disaster. When Collector determines that collection vehicles can no longer provide service in the street, the following steps shall be taken:
(a) Notify City giving location of
impassable street.
(b) Notify residents that collection
service will_};>~ avail~ble temporarily at the entrance to street location. ·
Cc)· Notify City when street is returned
to service. Return containers if applicable.
(d) Notify the residents of the date
that collection service will again be delivered in the
street location.

3.17.2 Infrastructure Renovation - Periodically major renovation is necessary to maintain the infrastructure of City. This includes such activities as replacing gas, water, and sewer· lines, surfacing or resurfacing streets, and·repl~cing wiring for telepho~e, electricity, or cable T.V.

If City is notified in advance of these activities,
City will notify Collector. However, it is not uncommon for work to be initiated without prior notification. Alternate sanitation service must be provided by Collector during this period of disruption. Each circumstance must be evaluated individually to determine the appropriate alternative. City shall be notified by Collector of the nature of the disruption, its location, and the ~J.te~nati ye e~ployed to provide service.
tl1205 CllJ0-00002 gv 1094531.J (JI - 17 - Page 299 of 434 )

3.17.3 Street Blocked by Materials - When
material is placed in the street in such a way that the collection vehicle cannot proceed down the street, Collector shall notify City. City will attempt to locate the individual responsible for the material and have them remove it, or otherwise provide for the removal of the material. Within twenty-four (24) hours of notification from the City Manager that the material blocking the alley or street ha~ been removed, Collector shall return and collect the Solid Waste and Recyclable Materials.

J.1s customer service Performance standards

3.18.1 Collector shall provide professional and
courteous customer service at all times. Every attempt shall be made to assist th~ customer in a timely and helpful manner regardless of the problem or question asked by the customer.

3.18.2 All customer service records and logs kept by Collector shall be available to City upon request and at no cost to City. City shall, at any time during regular City business hours, have access to Collector's customer service department for purposes that may include monitoring the quality of customer service, researching customer complaints, or gathering information pertaining to residential or commercial accounts.

3.18.3 City may, at City's own expense, conduct
surveys to determine customer satisfaction. Collector shal1 provide assistance in the development of the survey. If, as a result of the -survey,· -City determines -that customer service quality required by this Agreement is not being maintained, Collector shall take appropriate action to bring such service to a level of compliance with this Agreement within a reasonable amount of time. The results of such surveys shall be made available to Collector upon request.

3.18.4 Collector's office hours shall be, at a
minimum, from 8:00 a.m. to 5:00 p.m. Monday through Friday, and 8:00 a.m. to 12:00 p.m. Saturday. A representative of Cqllector shall be available during office hours for communication with the pub~ic at Collector's principal off ice. Collectpr_ sha_ll_ provide a listed telephone number, and shall courteously, quickly, and expeditiously receive and answer all telephone calls. Normal office hours telephone numbers will either be a. local or tollfree call. Collector shall also maintain a local or toll-free after-hours telephone number for use during other than normal business hours, with a message informing callers of normal business hours, and providing a number to call in the event of an emergency. Collector shall provide City with a twenty-four (24) hour-emergency telephone number list. --
- 18 - Page 300 of 434
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3.18.S Collector shall designate a "government·
liaison" who shall be responsible for working with the City Manager to resolve customer complaints. The City Manager shall be made aware of the name, position, and telephone number of this individual, and in the event the •government liaison" is changed for whatever reason, Collector shall notify City within fortyeight (48) hours of the change. The City Manager may request that Collector change its "government liaison" at any time by notifying Collector in writing, stating the reasons for such request.

3.19 complaints/Compliments

3.19.1 All customer complaints and compliments
shall be directed to Collector. Collector.agrees to use its best efforts to resolve all complaints by close of business of the same business (waste collection) day on which the complaint is received, and upon requ~st shall notify the City Manager of each complaint and it's final disposition.

3.19.2 Collector shall keep a formal, auditable
record of all complaints and compliments received, listing the date of customer complaints/compliments, describing the nature of the complaint, compliment or request, the name and address of the customer, and when and what action was taken by Collector to resolve the complaint. All such records shall be maintained for a period of three (3) years, and shall be available fo~ inspection by City. Collector shall prepare monthly summaries of customer complaints/compliments. The summaries shall be available and delivered monthly to the City Manager, in acaordance with Section 3.22.~-------- . . :· .... · _ . ___ --.

3.19.3 Service complaints may be investigated
by the City Manager. In addition, a customer dissatisfied with Collector's decision regarding a complaint may ask the City Manager to review the complaint. To obtain this review, the customer must request City review within thirty (30) days of receipt of Collector's response to the complaint, or within forty-five (45) days of submitting the complaint to Collector, if Collector has failed to respond to the complaint. The City Manager may extend the time to request its review for good cause.

3.19.4 Before reviewing.the.complaint~ the ·City
Manager shall refer it to Collector. If Collector fails to cure the complaint within ten (10) days, the City Manager shall review the customer's complaint and determine if further action is· warranted. The City Manager may request written statements from Collector and customer, and/or oral presentations.

3.19.5 The City Manager shall determine if the
customer's complaint is justified, and if so, what remedy, if any, shall be imposed. The remedy -under this Section shall be . limi.ted .to. a:·rebate .. of ¢:U$tO.m~r·c::.barg~s- :r~;tatE!tl t°-. the __ per~c:::,d of · breach of any-of the terms of this Agreement or liquidated ,1120s Clll0-00002 gv 10,4531.l Cll - 19 - Page 301 of 434 )
damages pursuant to Section 5.5 in an amount not to exceed $100 for any single event or series of related events, or any actual damages. The decision of the City Manager shall be .final on any matter under Two Thousand Five Hundred Dollars ($2,500.00), and may be appealed to the City Council in accordance with the procedures set forth in Section 5.3 for any matter in excess of that amount.

3.20 Privac~.

3.20.1 Collector shall strictly observe and
protect the rights of privacy of service recipients. Information identifying individual service recipients, or the composition or contents of a customer's Solid Waste or Recyclable Materials shall not be revealed to any· person, governmental unit, private agency or comp~ny1 unless upon the authority of a court of law, by statute, or upon valid authorization of the customer. This provision shall not be construed to preclude Collector from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by the Act.

3.20.2 Collector shall not market or distribute
mailing lists with the names and addresses of service recipients.

3.20.3 The rights accorded service recipients
pursuant to this Section 3.20 shall be in addition to any other privacy rights accorded residential service recipients pursuant to federal or state law.

3.21 Hazardous Waste Notifications. and Procedures.

3.21.1 Collector has no obligation to collect
Hazardous Waste pursuant to this Agreement. Collector has represented.to City that Collector will carry out its duties to notify all agencies with jurisdiction, including the California Department of Toxic Substances Control and Local Emergency Respons_e Providers, and, if appropriate, the National Response Center, of reportable quantities of Hazardous Waste, found or observed by Collector anywhere within the City. In addition to other required notifications, if Collector observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Waste unlawfully .. dis.posed of or released on City property, streets in the City, storm drains, or p~blic rights of way, Collector also.will immediately notify the City Manager and the Los Angeles County Fire Department.

3.21.2 Collector shall provide written
information regarding household and other Hazardous Waste to all customers upon initially beginning service and on a yearly basis thereafter. This information shall specify what types of waste may and may not be disposed of through routine collection e!'~~!-.lr~~-,-:: ~~-= ay~i_lab_ility of. hous:ehold hazardous_ waste .collection programs, tne · tagging·-procedure· if Hazardous Waste is 911205 C1130•00002 gv 1094531.3 CJ, - 20 - Page 302 of 434 )
found in the customer's deposited waste, and other pertinent information. Examples of household Hazardous Waste include, but are not limited to, used motor oil, oil-based paint, paint thinner, automotive products and aerosol containers.

3. 21. 3 Collector shall no.t be required to
filter through and thoroughly inspect the Solid Waste disposed of in bins or other containers by City's residents and commercial establishments in order· to ensure it does not contain any Hazardous Waste. Collector,· however, shall take all reasonable steps to avoid collecting Hazardous Waste and shall refuse to . collect and dispose of any such waste of which it becomes aware.

Collector shall place a tag·on any Hazardous Waste items (or the container) identified in the course of providing services pursuant to this Agreement, labeling the items or container as "hazardous - special handling required" and informing the customer of the various alternatives for proper-disposal. Collector shall keep a record of all customers who have received a tag for depositing Hazardous Waste items.

3.22 Records and Reports.

3.22.1 Collector shall keep an auditable
journal recording each instance that Solid Waste or RecyclableMaterials are not collected in compliance with the terms of this Agreement or applicable ordinance or regulation. The journal. shall include the reason for non-collection, including but not limited to instances of Hazardous Waste found in the Solid Waste or Recyclable Materials .
. 3.22.2- Collector- shall compile and keep-the following information.for each month during the·quarter and shall deliver a written report thereon, signed by an officer of Collector, to the City Manager on a quarterly basis within 30 days after the end of each quarter:
(a)
pursuant to this Agreement;
total tons of Solid Waste collected
(b) total tons of Recyclable Materials
collected.from Residential and Commercial/industrial Premises, by type; (c) number of Residential Premises and
Multi-Unit Residential Buildings_~eceiving Automated Collection pursuant to this Agreement;
Premises served; (d) number of Commercial/industrial
(e) number of missed collections;
9112D5 ClllD•DOD02 gv lOttSJI.J (J) - 21 - Page 303 of 434 )
(f) the name, address and telephone
number of each waste disposal facility used by Collector during the reporting month;
(g) the name, address and telephone
number of each facility where Recyclable Materials and Green Waste were delivered by Collector during the reporting month; and (h) the complaint/compliment log
described in Section 3.19.2.

3.22.3 Collector shall compile and keep the
following documents by month, and shall deliver the documents to the City Manager within ten (10) days of a request therefor from the City Manager:
(a) copies of waste disposal facility
weight tickets/invoices which indicate the net amount of all Solid Waste disposed during the reporting month, typical fees paid, and where the waste was disposed of, by route; and (b) copies of facility weight tickets/
invoices which indicate the net amount of all Recyclable Materials and Green Waste diverted from disposal facilities during the reporting month, typical fees paid, and where the Recyclable Materials and Green Waste were delivered, by route.

3. 22 ·. 4 The refusal or failure of Collector to
file any of the reports required, or to provide required information to City, or the inclusion of any false or misleading statement or representation by Collector in such report shall be deemed a material· breach. .of this Agreement, and shal·l subject· Collector to all remedies, legal or equitable;· which are available to City under this Agreement or otheniise.

3.22.5 In order to verify reports of disposal
amounts collected by Collector from each designated route, City shall be entitled to conduct an audit of any designated route upon demand. The audit demand ~ill be made by City by telephone 48 hours prior to the regularly scheduled collection day of the designated route. Telephone notice shall be followed by written notice and facsimile transmission (Fax) to Collector. The audit demand shall entitle.City to conduct a physical route audit of any or all designated routes for the·purposes of verifying customers served, disposal amounts·collected, and any other information as may be deemed necessary and beneficial to City. The standard route audit will include minimally:
(1) verification that the collection vehicle is empty when beginning the route; (2) verification of the addresses which are served by the designated collection vehicle; (3) verification of the landfill to which the Solid Waste is taken, and the facilities where Recyclable Materials and Green Waste are taken; and-.(4) the quantity of Solid. lfas.te and Recyclable Materials in tons collected from the designated route.
- 22 - Page 304 of 434
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3.23 Ownership of Solid waste and Recyclable
Materials. Ownership and the right to possession of Solid Waste and Recyclable Materials placed in containers or bundles for collection at the usual place of collection, transfer directly from the Residential Householder or Commercial/industrial business owner to Collector, by Municipal Code Section 12-7.7 and by Public Resources Code Sections 41950 and 41951. Collector shall notify all service recipients, in a manner acceptable to the City Manager, of the provisions of Public Resources Code Sections 419SO(c} and 41951, as well as Municipal Code Section 12-7.7, to the effect that, subject to the right of the service recipient to claim lost property, title and the right_to possession, and liability for all Recyclable Materials and all Sol~d Waste, which is set out for collection on the regularly scheduled collection day shall pass to Collector at the time it is set out. Subject to.the provisions of this Agreement, Collector shall have the right to retain any benefit or profit resulting from its right to retain, recycle, compost, dispose of or use the Solid Waste or Recyclable Materials which it collects.

At no time does City obtain any right of ownership or possession of Solid Waste or Recyclable Materials placed for collection, and nothing in this Agreement shall be construed as giving rise to any inference that City has any such rights. City and Collector agree that, for purposes of the Uniform Commercial Code and all other laws imposing liability for defective products, it is Collector, and not City which is to be considered the "merchant" of goods recycled pursuant to this Agreement.

3.24 Insurance and Indemnification
3 .. 24. l Collector shall carry public liability insurance for the term of this Agreement in an amount not less than Five Million Dollars ($5,000,000) aggregate, Two Million Dollars ($2,000,000) per occurrence, for each year within the term of this Agreement. Effective January l, 2000, Collector shall increase the coverage limits of the public liability insurance provided pursuant to this Section 3.24.l to an amount n~t ~ess than Seven Million Dollars ($7,000,000) aggregate, Three Million Dollars ($3,000,000) per occurrence. Commencing January 1, 2003, and every three years thereafter, Collector shall increase the coverage limits of the public liability insurance provided pursuant· to this Section 3.24.1 by twenty percent (20%). . .

Collector additionally shall provide Workers'
Compensation insurance.for its employees or shall have been issued a certificate to self insure in accordance with California state law. All public liability insurance obtained by Collector shall name as an additional insured the City of Cudahy, its officers, agents and employees and shall require that ninety (90) days' written notice be given prior to the reduction or modification of the limits or cancellation or expiration of the policy. __ Collector shall provide City with a certificate or certificates showing that the required insui;-@ce_will be_in effect at least 30 days in advance of the first day Collector 911205 Cl830·00002 gv 1094531.3 13) - 23 - Page 305 of 434 )
will perform services under this Agreement. No work shall be done by Collector during any period when Collector is not covered by insurance as required by this Section 3.24.1. In the e'\rent Collector does any work while not covered by the insurance, City may immediately terminate this Agreement without providing the 30 days' written notice required by Section 5.1.

3.24.2 Collector shall indemnify, defend (with
counsel reasonably acceptable to City) and hold harmless City, its officers, agents and employees from any and all claims and losses whatsoever occurring or resulting to any and all persons, firms or corporations furnishing or supplying work, services, materials, or supplies in connection with the performance of this Agreement, any and all claims, lawsuits or actions arising from the awarding or execution of this Agreement, and from any· and all claims and losses occurring or resulting to any person, firm, corporation or property for damage, injury or death arising out of or connected with Collector's performance of its obligations pursuant to this Agreement, or arising from or attributable to any alleged breach of warranty of merchantability or fitness of purpose or other laws relating to product liability for Recyclable Materials collected pursuant to this Agreement, or to the repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or Hazardous Waste at any place where Collector transfers, stores or disposes of Solid Waste pursuant to this Agreement, or its activities pursuant to this Agreement result in a release of hazardous substances into the environment. The foregoing indemnity is intended to .operate as-an agreement pursuant to Section_l07(e) of.the Comprehensive Environmental· Response, Compensation and Liability Act, "CERCLA,• 42 U.S.C. Section 9607(e), and California Health and Safety Code Section 25364, to defend, protect, defend, hold harmless and indemnify City. Collector's obligation to indemnify, defend and save harmless City as stated hereinabove shall include, but not be limited to, paying all legal fees and costs incurred by 1egal counsel of City's choice in representing City in connection with any such claims, losses, lawsuits or actions. In connection with claims, liabili~y, lawsuits or actions arising out of the Environmental Statutes, this clause shall not restrict any rights City has against Collector, including, but not limited to, the right of contribution, pursuant to the Environmental Statutes.

THB PROVISIONS OP THIS SECTION 3.24.2 SHALL SURVIVB TJIB EXPIRATION OP TBB PERIOD DURDfG WHICH COLLECTION SERVICES ARB.TO BB PROVIDED UNDER THIS AGREEMENT.

3.24.3 Collector agrees to indemnify, protect, defend (with counsel reasonably acceptable to City) and hold harmless City, to compliance of the Act, against all fines or penalties imposed by the CIWMB in the event the diversion, source reduction and recycling goals of the Act are not met by City, or in the event Col!~ct~:r;' s_ ~~!_ay~_ ~-i.1- pt;oyidip.g info~t~oz_i p~_event Clty· from siiliinitting reports required by the Act in a timely I ,11205 C1130•00002 fJY 10,tSll.l llJ - 24 - Page 306 of 434 )
manner. Collector further agrees to reimburse City its "pro rata share" of all costs and expenses attributable to any administrative proceedings (including but not limited to the administrative proceedings required by Public Resources Code Section 40059.l(c) (5)) or litigation relating to compliance with the Act, including reasonable attorneys' fees. For purposes of this Section 3.24.3, Collector's •pro rata share" shall be determined by apportioning such costs and expenses in accordance with the percentage of fault of Coliector and City, as determined by the court or administrative body, or if none, as mutually agreed to by the parties. Collector's obligation.to indemnify and reimburse City pursuant to this Section 3.24.3 is limited to the extent that such fines, penalties, costs or expenses result from activities, events, or omissions occurring during the period during which collection services are to be provideq under this Agreement. THE PROVISIONS OF THIS SECTION 3,24.3 SHALL SORVIVB THE EXPIRATION OP.THE PERIOD DURING WHICH COLLECTION SBRVICBS ARB TO BB PROVIDED UNDBR THIS AGREEMENT.

3.25 Performance Monitoring and Security.

3.25.l City Manager shall have the right to
observe and review Collector's operations. City shall also have the right to enter Collector's premises at ·all reasonable hours and with reasonable notice for the purposes of such observation and review. In addition to the rights to audit a route pursuant to Section 3.22.5, Collector will allow a City representative to ride with Collection vehicles on any route or routes, upon receipt of a request. to do so by 3 p.m. of the working day prior to the date(s) of route monitoring. All City representatives shall execute liability waivers prior to riding Collector's vehicles. ·

3.25.2 Within thirty (30) days after the date
of this Agreement, Collector shall execute and file with City a surety bond executed by Collector as principal and by a corporate surety authorized to do business in the State of California as surety, or a cash bond, or a letter of credit issued by a credit agency approved by the City Manager, in the minimum amount of $250,000.00. The bond or letter of credit must be in a form acceptable to the City Manager. The bond or letter of credit shall guarantee the faithful performance by Collector of its. obligations set forth in this Agreement throughout the term of this Agreement. Collector shall keep the bond or letter of credit in full for~e and effect throughout the term of this Agreement, and shall cause it to be renewed annually, or more often as needed. If no bond or letter of credit be so filed and renewed, this Agreement shall be ipso facto forfeited and Collector responsible for any damages suffered by City as result thereof. ·
911205 C1830-00002 av 1094511.3 (31 - 25 - Page 307 of 434

3.26 Annual Review of Performance and Quality of
Service.

3.26.l At City's sole option, commencing August
of 2000 and annually thereafter throughout the term of this Agreement, City may hold a public hearing to review Collector's performance and quality of service. The parties contemplate that the hearing be held during the period August 1 throuih December 31 of each year. Collector shall be p~es@Ht and sha I
participate at the hearing. The reports required by this Agreement shall be utilized as the basis for review. In addition, any customer may submit comments or complaints during the review meetings, either orally or in writing, and these shall be considered.

3.26.2 Within thirty (30) days after the
conclusion of the.public hearing, City shall issue a report regarding the adequacy of performance and quality of service. If any noncompliance with this Agreement is found, City may direct Collector to correct the inadequacies in accordance with Section

5.1. 3.26.3 Nothing in this Section 3.26 shall limit
the rights of City to enforce its rights pursuant to Article V, in the event of a default by Collector.

3.27 System and Services Review. In addition to the
Annual Review of Performance and Quality of Service pursuant to . Section 3.26, City shall have the right to invoke the System and.

Services Review procedures set forth in this Section 3. 27. __ - This review is designed to provide for technological, economic andregulatory changes in Solid.Wast~ collection and.recycling, to promote competition in the industry and to achieve a continuing, advanced Solid Waste and Recyclable Materials collection and recycling system.

3.27.1 At City's sole option, commencing August of 2000 and annually thereafter throughout the term of this Agreement, City may hold an annual public hearing to review collection and recycling systems and services. Subsequent System and Services Review hearings may be scheduled by City each year thereafter. It is City's inten.t to conduct any System and Services Review concurrently with any Annual Review·-of · ·· · ·· · · Performance and Quality of Service as provided for in Section

3.26. 3.27.2 Sixty (60) days after receiving notice
from City that City is exercising its rights under this Section

3.27, Collector shall submit a report to City indicating the following:
(a) Changes recommended to improve
) -~i_l;y' s abi~ity to meet the goals of the Act; and
fl1205 Clll0-00002 11Y 10t45ll.l ll, - 26 - Page 308 of 434 (b) Any specific plans for provision of ·
such new services by Collector, or a justification indicating why Collector believes that such services are not feasible for City.

3.27.3 Topics for discussion and review at the
System and Services Review hearing shall include, but shall not be limited to, services provided, customer complaints, rights of privacy, amendments to this Agreement, developments in the law, and new initiatives for meeting or exceeding the Act's goals and regulatory constraints.

3.27.4_ City and Collector may each select
additional topics for discussion at any System ·and Services Review hearing.

3.27.5 Not later than sixty (60) days after the
conclusion of each System and Services Review hearing, Collector shall issue a report. The report shall address services not being provided to City that are considered technically and economically feasible by City. City may require Collector to provide such services within a reasonable time, for reasonable compensation, in accordance with the provisions of Section 3.28.

3.28 Mandated Qperational Changes; Reopening of
Agreement.

3.28.1 City shall have the right to require
changes in collection or disposal methods and Collector shall comply therewith. If such changes result in increased or decreased costs to Collector, either Collector or City may request a rate review.:: Any changes in rates must be approved by City as provided by Article _IV of this Agreemeht •.. _

3.28.2 This Agreement was negotiated by the
parties for the purpose of implementing the requirements of the Act and the regulations of the CIWMB as they exist on the date of this Agreement, using the technology currently available. In addition to City's rights under Section 3.28.1, should the provisions of the Act or other state or federal laws or regulations or court decisions change, or should the technology for Solid Waste and Recyclable Materials handling services change, such that implementation of the Solid Waste and Recyclable Materials handling services contemplated by this Agreement is no longer desirable or feasible or both, Collector shall negotiate_ in good faith with City to implement-a new program, including any changes in rates.

3.28.3 The parties agree that the intent of
this Section 3.28 is to: (a) allow City to adjust its Solid Waste and Recyclable Materials collection program as technology and the applicable regulatory framework may change during the lengthy term of this Agreement; (b) authorize Collector to amortize any _ additional cost$ associated with any required or agreed upon changes; and (c) allow customers to receive the savings resulting ,1120s Cll30·000D2 gv 1094531,3 13) - 27 - Page 309 of 434 )
from any decreased costs associated with any required or agreed upon changes.

3.29 Street Sweeping. If requested by City,
Collector shall provide street sweeping services over all or.part of the area within the City, and/or collect and dispose of all street sweepings on an on-call basis, from a location designated by City. Collector's initial compensation for street sweeping services shall be established pursuant to Section 4.3.6 and subsequent changes in that compensation shall be established pursuant to Section 4.3.

3. 30 solid waste Ma·nagement Plan.

3.30.1 The parties acknowledge and agree that
the Act requires City to develop and implement a solid waste management plan wnich includes, among other components, a Source Reduction and Recycling Element ("SRRE") and a Household Hazardous Waste Element ("HHWE"). City's SRRE and IDIWE, as they now exist or may subsequently be amended, are incorporated herein by this reference. By executing this Agreement, Collector acknowledges receipt of a copy of the SRRE and JmWE.

3.30.2 Collector agrees to implement all
provisions of City's SRRE and HHWE, including any recycling programs, as directed by City (except for those programs that are not within the control of Collector), and as set forth in this Agreement, such that City shall achieve a diversion rate of SO_t by January 1, 2000, and any diversion rate which may subsequently be required by the Act or any successor statute. Collector's obligations hereunder shall include, .without limitation, the development, in .cooperation with··City, of public education and information programs relating to such policies and plans. The direct costs of implementing such programs shall be borne by Collector, subject to the provisions of Section 4.3.6 regarding rate adjustments for changes in service requirements.

3.30.3 Collector shall cooperate with City in
collecting and submitting such information and data as may be required for the further preparation and implementation of City's SRRE and ·HHWE, all at no cost or expense to City. Collector shall maintain and.monitor, on behalf.of City, .the City's SRRE and HHWE. Collector will be responsible.to prepare all reports that are required by the CIWMB. This could include an annual . waste sort of City waste required by the City's adopted Source Reduction and Recycling Element and Household Hazardous Waste Element. Pursuant to Section 3.13.2, all press releases, reports, or other documents prepared by Collector for release to the public, the CIWMB, or any other public agency, including but not limited to those relating to the Automated Collection system, or to City's SRRE, HHWE; and Diversion Rate, shall be subject to the prior review and approval of the City Manager.
11120~ CtllO•OOOD2 en, 1014531.3 (31 - 28 - Page 310 of 434

3.30.4 City agrees to cooperate in good faith
with Collector to facilitate Collector's compliance with these objectives. Such actions of City shall include but not be limited to the adoption and enforcement of reasonable ordinances and local regulations, including such as may reasonably be recommended by Collector, in order to ensure compliance by Residential Householders and by Commercial/industrial business owners with the policies and programs implemented by Collector.

City further agrees to reasonably cooperate with Collector in adopting and implementing local resource recovery and waste diversion programs, including those recommended by Collector, in order to ensure compliance with all Stat~ mandates.

ARTICLB IV

RATES, BILLING AND PAYMENT

4.1 Sale of Accessories. Except as expressly provided
herein, Collector shall not require customers to buy bags, cans, bins or other containers from Collector as a pre-condition for collection of Solid Waste or Recyclable Materials.

4.2 Rates. Collector is authorized to charge
reasonable rates in consideration of the services to be provided pursuant to this Agreement. The maximum rates in effect as of January 1, 1999 are set forth in Exhibit •s.• The Residential Rates set forth in Exhibit 11B11 shall apply irrespective of whether the customer is receiving manual or automated services.

Except as adjusted pursuant. _te> the provisions of Section 4. 3, the rates for Solid Waste ·and Recyclable Ma.terials collection shall not exceed the amounta .s~t. _forth in Exhibit·_ .•~s•_._ -- ___ _

4.3 Rate Adjustment

4.3.l Adjustment Procedur~. In addition to
being annually adjusted as provided in Section 4.3.3, Collector's rates shall also be subject to adjustments for inordinate cost increases as provided in Section 4.3.4, for tipping fees as provided in Section 4.3.5, and for changes in service
requirements as provided in Section 4.3.6. Collector may submit an application f.~r ~ate_review not more often than annually (no such application is required for the adjustment described in Section 4.3.3). A completed rate review application, in the format prescribed by the City Manager, shall be submitted not later than April 15 for the period starting the following July 1.

City will take action on the request as soon as possible and will complete the process by June 15, provided all required
information has been·submitted. ·

4.3.2 Limitations on Rate Increases.

Notwithstanding any other provision of this Agreement: (a) there . .shall be no increase ·of any kind in Residential ~ates that_ exceed the initial rate limitations set forth in Exhibit "B" until July ,,1,os C18Jo-00002 qv 1094S31.3 131 - 29 - Page 311 of 434 1, 2000; and (b) there shall be no increase of any kind in Commercial Rates that exceed the initial rate limitations set forth in Exhibit "B" until July 1, 1999.

4.3.3 Annual C.P.I, Adjustment. Commencing July
1, 1999 (except as set forth in Section 4.3.2), Collector may annually increase its rates by up to 90t of the percentage increase in the C.P.I. for the most recent 12-month period for which information is available from the U.S. Department of Labor.

Adjustment pursuant to this Section 4.3.3 shall not exceed five percent (St) per year. Any such increase in the C.P.I. shall be applied only to that portion of the rates which do not comprise tipping fees (see Section 4.3.7). Adjustment pursuant to this Section 4.3.3 shall not require an application pursuant to Section 4.3.1; however, any such adjustment shall not be effective unless preceded by sixty (60) days written notification to the City Manager and the Residential Householders, and, if affected, the Commercial/industrial customers.

4.3.4 Inordinate Cost Increase Adjustment.

Pursuant to the procedure set forth in Section 4.3.1 (and except as set forth in Section 4.3.2), Collector may apply for an increase in excess of the cap set forth in Section 4.3.3, for inordinate cos~ increases for certain component costs of collection. If a collection cost component is lOt or more of the total cost of collection and Collector shows the need for the requested inordinate cost rate increase by providing
documentation satisfactory to the City Council that a cqmponent of Collector's collection costs has increased by one hundred fifty percent ·..(.15-0-1') or more than. the perceptage increase in the - C.P.I. for the most recent· 12-month period-for -which--information:· is available from the· u~s~- Department of-Labor, then that portion of Collector's rate which that cost component represents may be increased by up to the percentage increase of the inordinate cost component. For example, as to this Section 4.3.4, if the fuel component is 1st of Collector's cost of collection and the cost of fuel increases in a particular year by 91, and the C.P.I. for that year increases by 4t, then the fuel cost component of Collector's rate may be increased by up to 9t and the remaining co~ponents (excluding tipping fees) of Collector's rate may be increased by up to 901 of the 41 increase in the C.P.I. for-that yea~.

Collector shall submit any and all data requested by
and in the format prescribed by the City Manager for any requested inordinate cost increase request. The Council shall consider the factors set forth above in determining whether to approve or deny the request. The decision of the City Council shall be final. The remedy of Collector in the event of adverse decision is to terminate it's obligations after thirty (30) days written notice to City. ••12oc ~1110-00002 av 109453a.3 (Jt - 30 - Page 312 of 434 )

4.3.5 Rate Adjustment for Tipping Fees.

4.3.5.1 Commencing July 1, 2000 (and
except as set forth in Section 4.3.2), Collector may annually adjust its Residential Rates upon aQ increase in tipping fees, and shall annually adjust its Residential Rates upon a decrease in tipping fees. Collector shall submit a request for a tipping fee increase of its rates, or notice of a tipping fee decrease, as part of its annual adjustment application pursuant to Section

4.3.1. Any such increase or decrease shall be effective on July

1. Any such rate adjustment for tipping fees shall be comprised of the percentage increase or decrease in the tipping fees, applied only to that portion of the rates which comprise tipping fees.

4.3.5.2 Collector may automatically
adjust its Commercial Rates upon an increase in tipping fees, and shall automatically adjust its Commercial Rates upon a decrease in tipping fees, upon giving 30 days written notice to City and all commercial/industrial business owners of such an increase or decrease. The notice to City must include documentation satisfactory to the City Manager of the increase or decrease in tipping fees. Collector shall be entitled to one increase in tipping fees per fiscal year, and any other request for increase due to tipping fee increase must first be reviewed for approval by the City Council.

4.3.6 Rate Adjustment From Changes in service
Requirements. Changes in Collector's rates which result from changes in service requirement.a may be adju.ste..d_ at_ the time that· the.service changes are implemented. Any rate adjustments resulting from changes in service requirements shall be-submitted in the format prescribed by the City Manager and will be approved concurrently with the approval of the implementation of any such service changes by the City Council.

4.3.7 Tipping Fees as Portion of Overall Rate.

For purposes of the rate adjustments authorized by Sections 4.3.3 and 4.3.5, the parties agree that tipping fees constitute 30t of the Residentia~ Rates, and sot of the Commercial Rates. Thus, for purposes of Section 4.3.3 (by way of example only), if the percentage increase in the C.P.I. is St, 70% of the Residential Rates may be increased by up to 4.5% (90% of St),. and 30t of the Residential Rates shall remain constant. For purposes of Section 4 • 3. 5_ (by way of. example only) , __ if the percentage increase in the tipping fees is lOt, 30\ of the Residential Rates may be increased by up to lOt, and 70t shall remain constant.

4.4 Billing.

4.4.1 On behalf of Collector, City shall bill
all Residential Premises serviced by Collector by placing the fees .. for. SQlid Waste· and Recyclable Mate·ria.ls collection on: the property tax rolls, through procedures established by the tax t81205 C1130-00002 gv 10t4538.3 (31 - 31 - Page 313 of 434 )
sessor for the County of Los Angeles. Collector shall prepare ,r caused to be prepared all information needed to place the fees and City's Utility Users Tax (Section 7-5.9 of the Municipa1 Code) on the property tax rolls, in the format required by the tax assessor for the County of Los Angeles. From the proceeds received from the County Tax Assessor, City shall be entitled to retain the following: (a) the Utility Users Tax; and (b) a sum equal to eight percent (St) of the proceeds collected for the Collector Fee described in Section 3.2.l. After deduction of the foregoing sums City shall remit the remaining proceeds to Collector no later than thirty (30) days after receipt of funds.

City shall have no obligation to pay any sums to Collector other than those City receives from the County Tax Assessor pursuant to this Section 4.4.1. City will have no liability to Collector for failure to collect any such sums.

4.4.2 Collector shall bill commercial/
industrial customers on a monthly basis. Collector shall include in all such bills City's Utility Users Tax (Section 7-S.9 of the Municipal Code), which Collector shall remit to City at the same time it remits·the Collector Fee. Customers may, on an
individual basis, request annual payment schedules, and Col1ector will work in good faith with individual customers to reasonably satisfy such requests.

4.4.3 Collector shall have the right to bill and
collect for its services in advance of the rendition of services hereunder, but shall refund any unused portion equal to two months or more of the amount collected in the event of
disruption, revision, or terminatioll" of the services; -or· when Residentia~ Premises are _vacant for.at-least a two month period and prior written notice of such vacancy has ·been •given ··to· -· Collector.

Collector shall maintain copies of the billings and
receipts, each in chronological order, for a period of three (3) years after the date of service for inspection by City.

Collector may, at its option, maintain those records in computer form, on microfiche, or in any other manner, provided that the records can be preserved and retrieved for inspection and verification in~ ti~ely manner. ·
The City Manager shall have .the right to request changes to the billing format to itemize certain appropriate charges or to otherwise reasonably clarify the billing. Collector will cooperate with City to revise its billing format as necessary to itemize appropriate charges from time to time.

4.4.4 Collector agrees that it shall neither
charge nor collect any sum or sums in excess of, or in addition to, the amounts specified in this Agreement for any Solid Waste or Recyclable Ma·terials collection services made pursuant to this . --- Agr..eement. ~ .Collector agree• tnat. City ,~ll be under. no obligation to collect or to enforce collection of any sums due fo tll2D5 CllJ0-00002 qv 10t4Sll.3 (31 - 32 -
)