Agenda packet, regular meeting — Cypress City Council, July 8, 2024 (part 1 of 7)

AMENDED AGENDA

REGULAR MEETING

CYPRESS CITY COUNCIL
July 8, 2024
6:00 P.M. - General Session
www.cypressca.org 5275 Orange Avenue
Cypress, California
Interested in speaking to the City Council? Information about participating in the City Council meeting appears at the end of the agenda.

AGENDA AMENDMENT
Submitted public comments attached to Agenda Item No. 11 Presentation slides added as attachment to Agenda Item No. 11

CALL TO ORDER
6:00 P.M.

Council Chambers

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District
Mayor Scott Minikus
Mayor Pro Tem Bonnie Peat
Council Member David Burke
Council Member Anne Mallari
Council Member Frances Marquez

PRESENTATIONS
Introduction of New City Employees
ORAL COMMUNICATIONS ON AGENDA ITEMS (Three minutes per speaker. The City Council may adjust the time allotted per speaker.)
The public may address the City Council on agenda items prior to any action taken. Although Council Members may provide brief responses, the City Council may not engage in a discussion with members of the public during the meeting. Please complete a Speaker's Card to address the City Council in-person. Please follow the instructions at the end of the agenda and wait for the Mayor/City Clerk to call on you to address the City Council virtually. Speakers providing in-person comments will be called first. Members of the public are encouraged to communicate with the City Council via email at [email protected] or by calling 714-229-6699.

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item. Council Members voting no or abstaining on a Consent Calendar item may do so without removing the item from the Consent Calendar.

1. Approve Minutes - Meetings of May 13, May 23, and May 28, 2024 Prepared by: Alisha Farnell, City Clerk
Recommendation: Approve as submitted.

2. Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading

3. Accept the Community Center Roof Replacement, Project 329 Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Accept the Community Center Roof Replacement, Project 329, in the amount of $522,610.52 and approve the final payment of $26,130.53 to Rite-Way Roof Corporation; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

4. Approve an Agreement and Task Order for On-Call Stormwater/Water Quality Program Services
Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Approve an agreement for on-call stormwater/water quality program services with Charles Abbott Associates, Inc., and;

2. Approve a task order to Charles Abbott Associates, Inc. not to exceed $162,950 to perform stormwater/water quality program services from August 1, 2024 through June 30, 2025.

July 8, 2024 | Page 2

5. Approve Agreements to Replace the Roof and HVAC of a City-Owned Building at 10161 Moody Street (Cedar Glen Park), Project 378
Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Approve an Agreement for Construction Services with MDJ Management, LLC., for $507,766.02, and authorize a contingency of $76,000; and

2. Approve a Task Order for Construction Inspection Services to FCG Consultants, Inc., for $49,265.70, and authorize a contingency of $7,400; and

3. Appropriate $640,432 in the City Capital Projects Fund for the Roof and HVAC Replacement at 10161 Moody Street (Cedar Glen Park), Project 378; and

4. Transfer $620,432 from the Infrastructure Reserve Fund to the City Capital Projects Fund for Project 378; and

5. Increase estimated revenues by $20,000 in the City Capital Projects Fund.

6. Adopt an Ordinance Approving Electronic and Paper Methods of Filing Campaign Finance Disclosure Statements
Prepared by: Alisha Farnell, City Clerk
Recommendation: Approve the second reading and adopt an Ordinance relating to campaign finance reporting and approving electronic and paper methods of filing campaign finance disclosure statements.

7. Adopt a Resolution Approving a Three-Year Memorandum of Understanding with the Cypress Employees' Association
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation:

1. Adopt a Resolution approving a Memorandum of Understanding with the Cypress Employees' Association from July 1, 2024 through June 30, 2027; and

2. Approve a $125,000 appropriation in the General Fund for FY 2024-25 salary and benefit costs which exceed the adopted budget.

July 8, 2024 | Page 3

8. Approve an Agreement Renewing Computer Security Monitoring Services Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation: Approve a three-year agreement with SHI International Corp. for $42,834.13 to renew the CrowdStrike Computer Security Monitoring Services subscription.

9. Adopt a Resolution approving the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds with Kroger Co. to Resolve Lawsuits Accusing Pharmacy Chains of Mishandling Opioid Pain Drugs Prepared by: Peter Grant, City Manager
Recommendation: Adopt a Resolution authorizing the City to enter into the Settlement Agreement with Kroger Co. to resolve lawsuits accusing pharmacy chains of mishandling opioid pain drugs, agree to the terms of the related State-Subdivision Agreement, and authorize entry into the related State-Subdivision Agreement with the Attorney General.

10. Receive and File the Police Department's Annual Military Equipment Report Per California Assembly Bill 481
Prepared by: Mark Lauderback, Chief of Police
Recommendation:

1. Receive and file the Police Department's Annual Military Equipment Report per California Assembly Bill 481; and

2. Approve a renewal of the military equipment policy previously adopted by City Council Ordinance No. 1194.

PUBLIC HEARINGS (Three minutes per speaker)
The public may address the City Council on public hearing items prior to any action taken.

Although Council Members may provide brief responses, the City Council may not engage in a discussion with members of the public during the meeting. Please complete a Speaker's Card to address the City Council in-person. Please follow the instructions at the end of the agenda and wait for the Mayor/City Clerk to call on you to address the City Council virtually. Speakers providing in-person comments will be called first.

Council Members should disclose communications with anyone relevant to a Public Hearing item.

July 8, 2024 | Page 4

11. Adopt Resolutions to Implement the 2021-2029 Housing Element, Certify the Housing Element Implementation Program Environmental Impact Report, and Hold a General Municipal Election on November 5, 2024
Prepared by: Alicia Velasco, Planning Director
Recommendation:

1. Adopt a Resolution certifying the Housing Element Implementation Program Environmental Impact Report, approving the Findings of Fact, Statement of Overriding Consideration, and the Mitigation Monitoring and Reporting Program.

2. Adopt a Resolution ordering the submission to the qualified voters of a measure to consider approval of an Ordinance repealing the Cypress Town Center and Commons Specific Plan 2.0 and adopting the Cypress Town Center Commons Specific Plan 3.0; authorizing the Mayor to submit an argument in favor of the measure, setting priorities for filing a written argument regarding the measure; and directing the City Attorney to prepare an impartial analysis, and providing for the filing of any rebuttal argument.

3. Adopt a Resolution requesting the Board of Supervisors of the County of Orange consolidate a General Municipal Election with the Statewide General Election on November 5, 2024, for the purpose of submitting a Measure to the voters pursuant to Elections Code Section 10403.

NEW BUSINESS
None.

ITEMS REMOVED FROM CONSENT CALENDAR

ITEMS FROM CITY COUNCIL MEMBERS

12. Receive Reports from Council Members Appointed to Represent the City on Organizations and Committees
Agendized by: Mayor Scott Minikus
Recommendation: Receive reports from Council Members appointed to represent the City on organizations and committees.

ORAL COMMUNICATIONS (Three minutes per speaker. The City Council may adjust the time allotted per speaker.)
The public may address the City Council on any item within the subject matter jurisdiction of the City Council. Although Council Members may provide brief responses, the City Council may not discuss nor take action on items that are not on the agenda. Please complete a Speaker's Card to address the City Council in-person. Members of the public are encouraged to communicate with the City Council via email at [email protected] or by calling 714-229-6699.

July 8, 2024 | Page 5

COUNCIL MEMBER REPORTS FROM CITY-AFFILIATED BOARDS AND COMMITTEES

AND REMARKS

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY MANAGER REMARKS

ADJOURNMENT
The next meeting will be an adjourned Regular Meeting, to be held on Monday, August 26, 2024, beginning at 5:30 p.m. in the Executive Board Room.

Council Members and the public should promptly exit the Council Chambers and proceed through the Civic Center to the parking lot.

I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted on the City Hall bulletin board and City website not less than 72 hours prior to the meeting. Dated this 3rd day of July, 2024.

________________________________
Alisha Farnell, City Clerk
July 8, 2024 | Page 6

PUBLIC PARTICIPATION
Members of the public can participate in the City Council meeting in the following ways:

1. Attend In-Person. First-come, first-served seating is available. All attendees must be free of any symptoms associated with contagious illnesses.

2. Attend Virtually via Webinar. Follow this link:
https://attendee.gotowebinar.com/register/6414179641731971163. Advanced registration is recommended.

The public may address the City Council virtually during Oral Communications on Agenda Items and Public Hearings. Virtual participants must click the 'hand raise' button prior to the end of the first in-person speaker to indicate they wish to address the City Council. Upon clicking the 'hand raise' button, please unmute your microphone and wait for the Mayor/City Clerk to call on you. = Hand Raise = Unmute

3. Submit Public Comments Prior to the Meeting. The public may submit comments via email to [email protected]. Comments submitted by 3:00 p.m. on the day of the meeting will be added to the meeting record.

4. Watch the Meeting. The City Council meeting can be viewed on Spectrum Cable Channel 36 or on the City's website at www.cypressca.org/watchlive.

5. Listen to the Meeting. Listen-only teleconferencing is available by calling (914) 614-3221 and entering Access Code 442-316-096. No registration or audio pin is necessary.

INVOCATION POLICY
The City Council does not endorse the content of the invocation and does not endorse the invocational speaker’s particular faith, belief and/or religious denomination. The City Council has an established neutral policy for selecting and scheduling invocational speakers. The City Council’s policy on invocations is available from the City Clerk.

AMERICANS WITH DISABILITIES ACT
In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this meeting, you should contact the City Clerk at (714) 229-6685 at least 72 hours prior to the meeting to enable the City to make reasonable arrangements to assure accessibility to this meeting.

July 8, 2024 | Page 7
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 1.

FROM: Alisha Farnell, City Clerk
DATE: 07/08/2024
SUBJECT: Approve Minutes - Meetings of May 13, May 23, and May 28, 2024

RECOMMENDATION
Approve as submitted.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
May 13, 2024 Regular Meeting Minutes
May 23, 2024 Special Meeting Minutes
May 28, 2024 Regular Meeting Minutes

REGULAR MEETING

CYPRESS CITY COUNCIL
MAY 13, 2024
4:00 P.M. – Closed Session/Workshop
6:00 P.M. – General Session
A regular meeting of the Cypress City Council was called to order at 4:00 p.m. by Mayor Minikus in the Executive Board Room, 5275 Orange Avenue, Cypress, California.

Pursuant to Government Code section 54953(b), this Regular City Council Meeting included teleconference participation by Council Member Mallari from Amara Resort and Spa – 100 Amara Lane, Sedona, AZ 86336

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administrative Services Matt Burton Director of Recreation and Community Services Jeff Draper Planning Director Alicia Velasco
Chief of Police Mark Lauderback
Assistant Director of Finance and Administrative Services Donnal Mullally City Engineer Nick Mangkalakiri
Assistant City Engineer Daniel Co
Senior Management Analyst Jason Machado
Office Assistant Christina Dizol

ORAL COMMUNICATIONS ON CLOSED SESSION / WORKSHOP ITEMS
None.

WORKSHOP SESSION
Fiscal Year 2024-25 Proposed Budget and Capital Improvement Program Director of Finance and Administrative Services and City Engineer provided a presentation on this item.

City Council discussion ensued.

No action was taken.

CLOSED SESSION

CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Agency Negotiators: City Manager and Director of Finance and Administrative Services Employee Groups:
 Cypress Employees’ Association
 Cypress Maintenance Employees’ Association
 Executive Management
 Mid-Management
 Confidential
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Initiation of litigation pursuant to Paragraph (4) of Subdivision (d) of Government Code Section 54956.9
Number of Cases: One Case
Potential Defendant: City of Seal Beach
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Southwest Voter Registration Education Project v. City of Cypress Case No. 30-2022-01270865-CU-CR-CJC
Orange County Superior Court
Mayor Minikus recessed the meeting at 5:16 p.m.

RECONVENE
Mayor Minikus reconvened the meeting at 6:00 p.m.

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administrative Services Matt Burton Director of Recreation and Community Services Jeff Draper Planning Director Alicia Velasco
Chief of Police Mark Lauderback
City Engineer Nick Mangkalakiri
Assistant City Engineer Daniel Co
Senior Management Analyst Jason Machado
Office Assistant Christina Dizol
INVOCATION Father Binh Nguyen, St. Irenaeus Catholic Church, led the Invocation.

PLEDGE OF ALLEGIANCE Mayor Minikus led the Pledge of Allegiance.

REPORT OF CLOSED SESSION / WORKSHOP
The City Attorney reported that the City Council met in Closed Session and held a discussion on one of the three items listed on the agenda, namely Conference with Legal Counsel – Anticipated Litigation under the heading initiation of litigation, potential defendant City of Seal Beach. He reported that the City Council held a discussion and by motion by Council Member Burke and seconded by Council Member Marquez, the City Council unanimously directed the City Attorney to file a lawsuit, if necessary, against the City of Seal Beach to seek contributions related to a personal injury matter.

The City Attorney stated the City Council will recess back into Closed Session following the open session to continue the discussion of Closed Session items.

The City Attorney then reported that the City Council met in Closed Session on the Conference with Labor Negotiator item and the City Council discussed the matter, provided direction, and no further reportable action was taken. The City Council also discussed the Existing Litigation matter, Southwest Voter Registration Education Project v. City of Cypress and the City Council discussed the matter, provided direction, and no further reportable action was taken.

PRESENTATIONS
The City Council presented a Proclamation to the Public Works Department in recognition of “National Public Works Week”.

The City Council presented a Proclamation to the Police Department in recognition of “National Police Week”.

The Chief of Police introduced Police Officers Brianna Reyes, Cameron Shockey and Nathan Ticorat.

ORAL COMMUNICATIONS ON AGENDA ITEMS
Bob Youngsma, Cypress, spoke regarding Agenda Item No. 4.

Leo Medrano, Cypress, spoke regarding Agenda Item No. 8.

Kyle Chang, Cypress, spoke regarding Agenda Item No. 8.

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item.

Council Member Marquez requested to pull Agenda Item No. 6.

A motion was made by Mayor Pro Tem Peat, and seconded by Council Member Marquez, to approve Consent Calendar items No. 1 through 5 and 7 through 9.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Mallari, Marquez, Peat and Minikus NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Item No. 1: Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading Item No. 2: Proclaim the Week of May 12-18, 2024 as National Police Week Recommendation: Proclaim the Week of May 12-18, 2024 as National Police Week Item No. 3: Proclaim the Week of May 19-25, 2024 as National Public Works Week Recommendation: Proclaim the week of May 19-25, 2024 as National Public Works Week.

Item No. 4: Approve Plans and Specifications and Award Contracts for Concrete Rehabilitation, Project 356
Recommendation:

1. Approve Plans and Specifications for Concrete Rehabilitation, Project 356; and

2. Award a contract to CJ Concrete Construction Inc. for $515,440, and authorize a contingency of $62,760; and

3. Approve a Task Order for Construction Inspection Services to AKM Consulting Engineers for $74,384 and authorize a contingency of $7,416.

Item No. 5: Accept the Sewer System Improvements, Project 354 Recommendation:

1. Accept the Sewer System Improvements, Project 354, in the amount of $62,575 and approve the final payment of $3,128.75 to Sancon Technologies, Inc.; and

2. Authorize the City Engineer to file Notice of Completion with the County Recorder.

Item No. 7: Accept the Donation of GloBug Portable Lighting Systems from Multiquip
Recommendation: Accept the donation of four GloBug Lighting Systems valued at $18,000 from Multiquip.

Item No. 8: Approve an Agreement for Police Body Worn Cameras Recommendation:

1. Approve a five-year agreement for $274,687 with Axon Enterprises, Inc. for the purchase, installation and support of body-worn cameras for Police department personnel; and

2. Approve an agreement with Axon Enterprises, Inc. for Sourcewell cooperative agreement pricing.

Item No. 9: Receive and File Fiscal Year 2024-25 Proposed Budget and Capital Improvement Program
Recommendation:

1. Receive and file the FY 2024-25 Proposed Budget and Capital Improvement Program;

2. Schedule City Council consideration of adoption of the FY 2024-25 Budget on June 10, 2024; and

3. Publish a notice stating the public may comment on the Budget at the meeting of June 10, 2024.

ITEMS REMOVED FROM CONSENT CALENDAR
Item No. 6: Approve the City Engineer’s Report and Adopt a Resolution Declaring the City Council’s Intent to Renew Cypress Corporate Center Landscape Maintenance District No. 1 following a June 24, 2024 Public Hearing Council Member Marquez commented on this item.

City Engineer answered questions by Council Member Marquez.

A motion was made by Council Member Burke, and seconded by Council Member Marquez, to approve the City Engineer’s Report for the Cypress Corporate Center Landscape Maintenance District No. 1 for Fiscal Year 2024-25; and adopt the attached Resolution declaring the City Council’s intention to order the renewal of Cypress Corporate Center Landscape Maintenance District No. 1 for maintenance of the landscape and irrigation system and setting the public hearing for June 24, 2024.

RESOLUTION NO. 6959

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,

CALIFORNIA, DECLARING ITS INTENTION TO ORDER THE RENEWAL

OF CYPRESS CORPORATE CENTER LANDSCAPE MAINTENANCE
DISTRICT NO. 1 FOR FISCAL YEAR 2024-25, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, AND FIXING A TIME

AND PLACE FOR HEARING OBJECTIONS THERETO

ITEMS FROM CITY COUNCIL MEMBERS
None.

ORAL COMMUNICATIONS
Ray Chism, Cypress, spoke regarding homeless population, sidewalk repairs and housing.

Bob Youngsma, Cypress, spoke regarding virtual participation during Oral Communications and virtual participation by Council Members.

COUNCIL MEMBER REPORTS FROM CITY-AFFILIATED BOARDS AND

COMMITTEES AND REMARKS
Council Member Burke
Attended the Cypress High School Seniors Captone Showcase and thanked the students for allowing him to participate. Attended the OC Library Advisory Board meeting and provided an update on their annual budget.

Council Member Marquez:

Attended the PACE graduation ceremony at Grace Christian School. Attended the Senior Center Volunteer Recognition luncheon. Attended the From-The-Heart-We-CareFundraiser and congratulated Council Member Mallari for her work on the event. Attended the Black April Remembrance Ceremony in the City of Westminster. Attended the Southern California Association of Governments conference in Palm Desert. Conducted Commissioner interviews and thanked all the applicants. Announced her planned attendance at the Police Foundation luncheon. Wished everyone a Happy Mother’s Day.

Mayor Pro Tem Peat:

Attend the Capstone Showcase at Cypress High School. Attended FOCCA Scholarship reception. Attended the PACE graduation at Grace Christian School. Attended the Senior Center Volunteer Recognition and congratulated award recipient Carlos Ramirez.

Attended Cypress College Ad Hoc Subcommittee meeting and received an update on student and community participation on campus. Attended OC Mosquito and Vector Control District Board meeting. Attended OC Sanitation District Board meeting.

Participated in National Day of Prayer event. Conducted Commissioner interviews.

Mayor Minikus:

Thanked Mayor Pro Tem Peat for speaking at the FOCCA Scholarship reception.

Attended annual Yom HaShoah Holocaust Day of Remembrance at Cypress College.

Council Member Mallari:

Attended the Youth Action Committee end of year celebration. Received a tour of Cypress College and received information regarding low income services. Participated in the Fire Ops 101 event with OCFA.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
None.

CITY MANAGER REMARKS
Reminded everyone of the Cypress Police Department Open House event and Police Foundation Luncheon at the Navy Golf Course. Spoke regarding the Housing Element implementation ballot measure and stated informational documents will be published online and distributed to all households in the city. Announced community meetings will take place on June 1 and June 5. Spoke regarding employee introductions.

The City Attorney provided a legal update regarding recent challenges against SB 9 brought by local charter cities.

ADJOURNMENT – IN MEMORY OF FORMER MAYOR ANNA PIERCY
Mayor Minikus recessed the meeting into Closed Session at 6:53 p.m. to resume discussion of the Closed Session items as previously reported by the City Attorney.

Mayor Minikus adjourned the Regular Meeting at 8:47 p.m. to an adjourned Regular Meeting, to be held on Monday, May 13, 2024, beginning at 5:30 p.m. in the Executive Board Room.
_______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

SPECIAL MEETING

CYPRESS CITY COUNCIL
MAY 23, 2024
4:00 P.M.

A special meeting of the Cypress City Council was called to order at 4:00 p.m. by Mayor Minikus in the Executive Board Room, 5275 Orange Avenue, Cypress, California

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
ORAL COMMUNICATIONS (Limited to three minutes per speaker, unless modified by the City Council)
None.

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Fortis LLP v. Frances Marquez, City o Cypress
Case No. 30-2022-01277792-CU-WM-CJC
Orange County Superior Court

PUBLIC EMPLOYEE PERFORMANCE REVIEW
Pursuant to Government Code Section 54957
Title: City Manager
Mayor Minikus recessed the meeting at 4:01 p.m.

Mayor Minikus reconvened the meeting at 6:56 p.m.

REPORT OF CLOSED SESSION
The City Attorney reported that the City Council met in Closed Session and held a discussion regarding the first item listed on the agenda, namely conference with Legal Counsel – existing litigation, the matter of Fortis LLP v. Frances Marquez. He stated the City Council received an update, provided direction and no further reportable action was taken.

Regarding the second Closed Session item listed on the agenda, namely Public Employee Evaluation, title City Manager, the City Attorney reported the City Council provided direction on this matter and no further reportable action was taken.

ADJOURNMENT
Mayor Minikus adjourned the meeting at 6:58 p.m. to an adjourned Regular Meeting, to be held on Tuesday, May 28, 2024, beginning at 5:30 p.m. in the Executive Board Room. _______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

REGULAR MEETING

CYPRESS CITY COUNCIL
MAY 28, 2024
5:30 P.M. – Closed Session
6:00 P.M. – General Session
A regular meeting of the Cypress City Council was called to order at 5:31 p.m. by Mayor Minikus in the Executive Board Room, 5275 Orange Avenue, Cypress, California.

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
City Clerk Alisha Farnell

ORAL COMMUNICATIONS ON CLOSED SESSION / WORKSHOP ITEMS
None.

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Southwest Voter Registration Education Project v. City of Cypress Case No. 30-2022-01270865-CU-CR-CJC
Orange County Superior Court
Mayor Minikus recessed the meeting at 5:32 p.m.

RECONVENE
Mayor Minikus reconvened the meeting at 6:09 p.m.

ROLL CALL
Mayor Scott Minikus
Mayor Pro Tem Bonnie Peat
Council Member David Burke
Council Member Anne Mallari
Council Member Frances Marquez

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administration Services Matt Burton Director of Public Works Doug Dancs
Chief of Police Mark Lauderback
Director of Recreation and Community Services Jeff Draper Planning Director Alicia Velasco
City Clerk Alisha Farnell
City Engineer Nick Mangkalakiri
IT Manager Adrian Smith
INVOCATION Steven Mauss, The Church of Jesus Christ of Latter-day Saints, led the Invocation.

PLEDGE OF ALLEGIANCE Council Member Anne Mallari led the Pledge of Allegiance.

REPORT OF CLOSED SESSION / WORKSHOP
The City Attorney stated the City Council met in Closed Session regarding the item listed on the agenda, namely Conference with Legal Counsel – Existing Litigation, the matter of Southwest Voter Registration Education Project v. City of Cypress. The City Attorney stated the City Council received an update, provided direction and no further reportable action was taken.

PRESENTATIONS
The Chief of Police provided a presentation on a Police Van donated by Cypress Police Foundation.

ORAL COMMUNICATIONS ON AGENDA ITEMS
Leo Medrano, Cypress, spoke regarding Agenda Item No. 8.

Bob Youngsma, Cypress, spoke regarding Closed Session.

Glenn Button, Cypress, spoke regarding Agenda Items Nos. 8 and 14

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item.

Mayor Minikus stated that Agenda Item No. 11, the Warrant Register, includes electronic fund transfer No. 14958 for $308.53 as reimbursement for medical coverage he is entitled to receive as a CalPERS annuitant. He indicated that in voting for any motion to approve the Warrants Register, he would not be voting on electronic fund transfers No. 14958 for the reason disclosed.

Council Member Burke spoke regarding Agenda Item No. 7.

A motion was made by Council Member Mallari, and seconded by Council Member Marquez, to approve Consent Calendar items No. 1 through 11.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Mallari, Marquez, Peat and Minikus NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Item No. 1: Approve Minutes - Meetings of February 26, March 11, March 20, and March 25, 2024
Recommendation: Approve as submitted.

Item No. 2: Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading Item No. 3: Accept the Community Center HVAC, Project 289 Recommendation:

1. Accept the Community Center HVAC, Project 289, in the amount of $797,374.65 and approve the final payment of $39,868.73 to Bon Air, Inc.; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

Item No. 4: Accept the Veterans Park and Cedar Glen Park Parking Lot Resurfacing, Project 363
Recommendation:

1. Accept the Veterans Park and Cedar Glen Park Parking Lot Resurfacing, Project 363, in the amount of $70,040.87 and approve the final payment of $3,502.04 to Prestige Paving Company; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

Item No. 5: Approve the Purchase of One Replacement Public Works Vehicle Recommendation: Authorize the purchase of one replacement Public Works dump truck vehicle, including upfitting, for $105,553 from BP Ford of Long Beach.

Item No. 6: Accept the Donation of a Police Van from the Cypress Police Foundation
Recommendation: Accept the donation of a Police Van valued at $86,000 from the Cypress Police Foundation.

Item No. 7: Appoint City Commissioners
Recommendation: Appoint Commissioners to the Recreation and Community Services, Senior Citizens, and Traffic Commissions.

Item No. 8: Receive and File the Five-Year Technology Master Plan Recommendation: Receive and file the Five-Year Technology Master Plan for FY 2024- 25 through FY 2028-29.

Item No. 9: Receive an Update on the Strategic Plan Six-Month Objectives Recommendation: Receive an update on the Strategic Plan six-month objectives.

Item No. 10: Receive and File the Investment Report for the Month Ended April 30, 2024
Recommendation: Receive and file the attached investment report.

Item No. 11: Receive and File Register of Warrants, Transfers, and Wires Issued for the Period of April 6, 2024 through May 10, 2024
Recommendation: Receive and file the attached payment register summarized below for the period of April 6, 2024 through May 10, 2024:
 Electronic Funds Transfers 14843 through 15119
 Warrants 64921 through 65247
 Payroll Transfers W1527 through W1528

PUBLIC HEARINGS
Item No. 12: Approve Conditional Use Permit No. 2024-02 to Permit a Restaurant and the Sale of Beer and Wine for On-site Consumption and the Sale of Packaged General Alcohol for Off-Site Consumption at a Marketplace and Food Court at 4955 Katella Avenue
Mayor Minikus asked Council Members to disclose any communication with anyone relevant to the item.

No communications were disclosed.

The Planning Director provided a report on this item.

Council Member Mallari asked questions of staff.

Mayor Minikus opened the public hearing.

Mayor Minikus invited the applicant to come forward.

There were no public comments.

The applicant agreed with the conditions of approval.

Council Member Mallari asked questions of staff.

Mayor Minikus closed the Public Hearing.

A motion was made by Council Member Mallari, and seconded by Mayor Pro Tem Peat, to approve Conditional Use Permit No. 2024-02 to permit a restaurant and the sale of beer and wine for on-site consumption and the sale of packaged general alcohol for fff-site consumption at a Marketplace and Food Court at 4955 Katella Avenue.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Mallari, Marquez, Peat and Minikus NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
RESOLUTION NO. 6960

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS APPROVING CONDITIONAL USE PERMIT NO. 2024-02, A REQUEST TO

PERMIT BOTH ON-SALE BEER AND WINE AND OFF-SALE GENERAL

ALCOHOL AT A NEW SPECIALTY MARKET WITH A FOOD-COURT
LOCATED AT 4955 KATELLA AVENUE, WITHIN THE PBP - PLANNED

BUSINESS PARK ZONE AND DETERMINING THAT PUBLIC

CONVIENCE WOULD BE SERVED WITH THE ISSUANCE OF BOTH
TYPE 21 AND TYPE 41 ALCOHOLIC BELVERAGE CONTROL LICENSES

AND FINDING THE PROJECT EXEMPT FROM CALIFORNIA

ENVIROMENTAL QUALITY ACT REQUIREMENTS

NEW BUSINESS
Item No. 13: Authorize Amendment to Settlement Agreement with Orange County Transportation Authority to Restore Measure M2 Eligibility The Director of Finance and Administrative Services provided a report on this item.

City Council discussion ensued.

A motion was made by Council Member Mallari, and seconded by Mayor Pro Tem Peat, to authorize the City Manager to approve an amendment to the terms of the Settlement Agreement with the Orange County Transportation Authority to immediately restore the City's Measure M2 eligibility, one-year earlier than anticipated in the original Settlement Agreement.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Mallari, Marquez, Peat and Minikus NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None

CONTINUED ITEMS
Item No. 14: Consider a Resolution Affirming the City Council’s Commitment to Effective Governance
The City Manager provided a report on this item.

City Council discussion ensued.

A motion was made by Council Member Mallari, and seconded by Mayor Pro Tem Peat, to approve a Resolution affirming the City Council’s commitment to effective governance.

A substitute motion was made by Council Member Burke, and seconded by Council Member Marquez, to approve the Resolution with the omission of numbered paragraphs, 4 through 9.

The substitution motion failed by the following roll call vote:

AYES: 2 COUNCIL MEMBERS: Burke and Marquez
NOES: 3 COUNCIL MEMBERS: Mallari, Peat and Minikus
ABSENT: 0 COUNCIL MEMBERS: None
The original motion passed by the following roll call vote:

AYES: 4 COUNCIL MEMBERS: Burke, Mallari, Peat and Minikus NOES: 1 COUNCIL MEMBERS: Marquez
ABSENT: 0 COUNCIL MEMBERS: None
RESOLUTION NO. 6961

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, AFFIRMING THE CITY COUNCIL’S COMMITMENT TO

EFFECTIVE GOVERNANCE

ITEMS REMOVED FROM CONSENT CALENDAR
None.

ORAL COMMUNICATIONS
Bob Youngsma, Cypress, spoke regarding technology use to participate in City Council meetings and informational brochure regarding Housing Element.

Teddy Loyd, Cerritos, spoke regarding pickle ball courts opening at Liberty Park in Cerritos.

COUNCIL MEMBER REPORTS FROM CITY-AFFILIATED BOARDS AND

COMMITTEES AND REMARKS
Council Member Burke
Attended an Ad Hoc Subcommittee meeting with the Cypress School District. Attended the Police Foundation luncheon and Police Department Open House event.

Council Member Marquez:

Attended the Police Foundation luncheon. Attended Lexington Jr. High School concert.

Attended Police Department Open House. Attended Fountain Valley’s Memorial Day ceremony. Thanked all veterans for their service.

Council Member Mallari:

Met with representatives from Cypress School District, Anaheim Union High School District and Cypress College to discuss community engagement. Congratulated the Police Department on the Police Van donation. Congratulated all residents who applied to serve on a Commission. Participated in OCFA’s Fire Operations 101 event. Received a tour of Rolls-Royce corporate facility for high temperature composites.

Mayor Pro Tem Peat:

Attended OC Vector Control District Board meeting and approved the budget for upcoming year. Received a tour of Rolls Royce corporate facility and discussed future expansion.

Mayor Minikus:

Attended the OC Sanitation District grand opening event of their headquarters building.

Attended the Police Department Open House. Attended West Cities Police Communications Center Board meeting. Attended memorial parade at Cottonwood Church. Attended Memorial Day remembrance at Forest Lawn.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
None.

CITY MANAGER REMARKS
Reminded City Council their June 10th meeting will include consideration of adopting the 2024/25 Budget and CIP.

ADJOURNMENT
Mayor Minikus adjourned the Regular Meeting at 7:28 p.m. to an adjourned Regular Meeting, to be held on Monday, June 10, 2024, beginning at 5:30 p.m. in the Executive Board Room.
_______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 3.

FROM: Douglas Dancs, Director of Public Works
DATE: 07/08/2024
SUBJECT: Accept the Community Center Roof Replacement, Project 329

RECOMMENDATION

1. Accept the Community Center Roof Replacement, Project 329, in the amount of $522,610.52 and approve the final payment of $26,130.53 to Rite-Way Roof Corporation; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

DISCUSSION
In March, the City Council awarded a construction contract to Rite-Way Roof Corporation to replace the roof at the Community Center. The project removed and replaced over 25,000 square feet of PVC roofing and coverboard, replaced roof sheathing, retrofitted drains and installed safety ladders. The work began in May and was completed in June.

Public Works will release the Labor and Materials Bond and the Faithful Performance Bond upon expiration of the required lien period.

BUDGET IMPACT
The original estimated cost of design, construction, and inspection was $650,713.53, and final project costs total $559,296.37, as summarized in the attached table. Sufficient amounts were included in the Recreation and Park District's FY 2023-24 General Fund Budget to pay for the project.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Cost Table

PROJECT COST TABLE
Item Description
Original
Amount
Actual
Expenditures Difference
Design
Design $ 23,800.00 $ 23,800.00 $ -
Design Contingency 3,600.00 - 3,600.00
Sub-total Design Support $ 27,400.00 $ 23,800.00 $ 3,600.00 Construction
Construction $ 520,593.53 $ 520,593.53 $ -
Construction Contingency 52,000.00 2,016.99 * 49,983.01 Sub-total Construction $ 572,593.53 $ 522,610.52 $ 49,983.01 Construction Management & Inspection
Inspection $ 46,120.00 $ 12,885.85 $ 33,234.15
Inspection Contingency 4,600.00 - 4,600.00
Sub-total Construction Inspection $ 50,720.00 $ 12,885.85 $ 37,834.15 Total Project $ 650,713.53 $ 559,296.37 $ 91,417.16
Community Center Roof Replacement
Project 329
* Includes change orders for unforseen site conditions and/or field modifications.

Note: CM/Inspection expenditures are based on actual hours inspectors are needed on the job site. This figure will vary for each job based on actual project duration, required special inspections/material testing and other factors. Original Contract Amounts are cost estimates/proposals based on the project description, scope of work, and anticipated needs.

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 4.

FROM: Douglas Dancs, Director of Public Works
DATE: 07/08/2024
SUBJECT: Approve an Agreement and Task Order for On-Call Stormwater/Water Quality Program Services

RECOMMENDATION

1. Approve an agreement for on-call stormwater/water quality program services with Charles Abbott Associates, Inc., and;

2. Approve a task order to Charles Abbott Associates, Inc. not to exceed $162,950 to perform stormwater/water quality program services from August 1, 2024 through June 30, 2025.

DISCUSSION
On-Call Contract
On-call contracts provide the City with the knowledge and flexibility to implement and deliver services and projects. The City currently has on-call contracts for sewer, storm drain, landscape architecture, traffic engineering, architectural design, and environmental services.

The existing on-call stormwater/water quality contract expires in July. Public Works issued a request for qualifications and distributed it to several firms known to provide these services.

Only one firm, Charles Abbott Associates (CAA), responded. CAA is the City's current stormwater/water quality consultant and inspector, and provides these services for many cities, including Aliso Viejo, Fountain Valley, Rancho Santa Margarita, La Palma, Laguna Woods, Los Alamitos, and Mission Viejo.

A two-year agreement not to exceed $162,950 is recommended. Prior to starting any new service, CAA will provide a scope of work, schedule, and proposed fee for approval. Task orders for $25,000 or more require City Council approval.

The FY 2024-25 task order provides the City with the necessary expertise to comply with the State’s stormwater permit. The scope of work includes program management and support for inspections, developments, public education programs, and the preparation of the annual stormwater compliance report.

BUDGET IMPACT
Sufficient amounts are included in the FY 2024-25 Storm Drainage and Sewer Funds Budget for the recommended stormwater/water quality program services included in the recommended task order. A portion of the costs associated with these services are reimbursed by developers, property owners, and businesses.

LEGAL REVIEW
The City Attorney has approved the agreement as to form.

APPROVED BY: Peter Grant, City Manager
Attachments
Agreement
Task Order

AGREEMENT FOR CONTRACT SERVICES

BY AND BETWEEN THE CITY OF CYPRESS AND
CHARLES ABBOTT ASSOCIATES, INC.

THIS AGREEMENT FOR CONTRACT SERVICES (herein "Agreement") is made and entered into this ___ day of ___ , 2024 by and between the City of Cypress, a California municipal corporation ("City") and CHARLES ABBOTT ASSOCIATES, INC. a California Corporation ("Contractor"). City and Contractor are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties."

RECITALS
A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article I of this Agreement.

B. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in Article I of this Agreement, was selected by the City to perform those services.

C. Pursuant to the City of Cypress's Charter and Municipal Code, City has authority to enter into and execute this Agreement.

D. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in Article I of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows:

ARTICLE 1. SERVICES OF CONTRACTOR
I. I Scope of Services.

In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference, which may be referred to herein as the "services" or "work" hereunder.

As a material inducement to the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of th is Agreement, the phrase "highest 0 I 004 0006/389802 I
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professional standards" shall mean those standards of practice recognized by one or more firstclass firms performing similar work under similar circumstances.

1.2 Contractor's Proposal.

The Scope of Service shall include the Contractor's scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law.

Contractor shall keep itself informed concerning, and shall render al I services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service 1s rendered.

1.4 Licenses. Permits. Fees and Assessments.

Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor's performance of the services required by this Agreement, and shall indemnify, defend and hold hannless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Work.

By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of services to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the perfonnance of the services hereunder, Contractor shall immediately infonn the City of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer.

1.6 Care of Work.

The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence.
01004 0006/389802 I
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1.7 Further Responsibilities of Parties.

Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other.

1.8 Additional Services.

City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation of up to Fifteen percent (15%) of the Contract Sum or $25,000, whichever is less; or, in the time to perform of up to one hundred eighty ( I 80) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

1.9 Special Reguirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the "Special Requirements" attached hereto as Exhibit "B" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "B" and any other provisions of this Agreement, the provisions of Exhibit "B" shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed (see Exhibit "C") Dollars (the "Contract Sum"), unless additional compensation is approved pursuant to Section 1.8.
0 I 004 0006/389802 I

2.2 Method of Compensation.

The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services, less contract retention; (iii) payment for time and materials based upon the Contractor's rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained, and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.

2.3 Reimbursable Expenses.

Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City.

Coordination of the performance of the work with City is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings.

2.4 Invoices.

Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City's Director of Finance.

By submitting an invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Contractor shall not invoice City for any duplicate services performed by more than one person.

City shall independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Contractor to be paid within forty-five (45) days of receipt of Contractor's correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission. Review and payment by City for any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.5 Waiver.

Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.
01004.0006/389802 1
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ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance.

Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the "Schedule of Performance" attached hereto as Exhibit "D" and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty ( 180) days cumulatively.

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten ( I 0) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer sh al I ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor's sole remedy being extension of the Agreement pursuant to this Section.

3.4 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (I) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit "D").

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Contractor.

The following principals of Contractor ("Principals") are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
0 I 004 0006/389802 I
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(Name) (Title)
(Name) (Title)
(Name) (Title)
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement.

Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall utilize only competent personnel to perform services pursuant to this Agreement. Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor's staff and subcontractors, if any, assigned to perform the services required under this Agreement. Contractor shall notify City of any changes in Contractor's staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.

4.2 Status of Contractor.

Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor's officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City's employees. Contractor expressly waives any claim Contractor may have to any such rights.

4.3 Contract Officer.

The Contract Officer shall be Public Works Director or such person as may be designated by the City Manager. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer.

The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.4 Independent Contractor.

Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or 0 I 004 0006/389802 1
Rusty Reed President
Diann Nolte Assistant Secretary
control of Contractor's employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.

4.5 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City:
(a) General Liability Insurance (Occurrence Fonn CGO00I or equivalent). A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $ I ,000,000.00 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit.
(b) Worker's Compensation Insurance. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for the Contractor against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Contractor in the course of carrying out the work or services contemplated in this Agreement.
(c) Automotive Insurance (Form CA 0001 (Ed 1/87) including "any auto" and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance 01004 0006/389802 I
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written on a per occurrence for bodily injury and property damage in an amount not less than $1,000,000. Said pol icy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
(d) Professional Liability. Professional liability insurance appropriate to the Contractor's profession. This coverage may be written on a "claims made" basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The insurance must be maintained for at least 5 consecutive years following the completion of Contractor's services or the termination of this Agreement.

During this additional 5-year period, Contractor shall annually and upon request of the City submit written evidence of this continuous coverage.
(e) Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit "B".

5.2 General Insurance Reguirements.

All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with Contractor's insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. Moreover, the insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention.

All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer.

No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the right to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.

All certificates shall name the City as additional insured (providing the appropriate endorsement) and shall conform to the following "cancellation" notice:

CANCELLATION:
0 l004 0006/389802 I
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SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE

CANCELLED BEFORE THE EXPIRATION DATED THEREOF,
THE ISSUING COMPANY SHALL MAIL THIRTY (30)-DA Y

ADVANCE WRITTEN NOTICE TO CERTIFICATE HOLDER
NAMED HEREIN.
[to be initialed]
�ontractor Initials
City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Contractor performs; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or any automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunte_ers. Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. The Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities or the activities of any person or persons for which the Contractor is otherwise responsible nor shall it limit the Contractor's indemnification liabilities as provided in Section 5.3.

In the event the Contractor subcontracts any portion of the work in compliance with Section

4.5 of this Agreement, the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City.

5.3 Indemnification.

To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees and agents ("Indemnified Parties") against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (''indemnitors"), or arising from Contractor's or indemnitors' reckless or willful misconduct, or arising from Contractor's or indemnitors' negligent performance 01004 000613&9802 I
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of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorney's fees incurred in connection therewith;
(b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorney's fees.

Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Contractor in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City's sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City's negligence, except that design professionals' indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement.

5.4 Sufficiency of Insurer.

Insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City ("Risk Manager") due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the risk manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the Risk Manager.
01004 0006/389802 I
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ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the "books and records"), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor's business, custody of the books and records may be given to City, and access shall be provided by Contractor's successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Reports.

Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.

6.3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the "documents and materials"), including any electronic documents and materials, prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City in a format of the City's choice upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City's sole risk and without liability to Contractor, and Contractor's guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use. Contractor 0 I 004 0006/389802 I
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shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as "works made for hire" as defined in 17 U.S.C. § I 01, such documents and materials are hereby deemed "works made for hire" for the City.

6.4 Confidentiality and Release of Information.
(a) All information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.
(b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorney's fees, caused by or incurred as a result of Contractor's conduct. ( d) Contractor shal I promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District 01004.0006/389802. I
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Court, venue shall lie exclusively in the Central District of California, in the County of Orange, State of California.

7.2 Disputes; Default.

In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work perfonned after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default.

This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor's default shall not be deemed to result in a waiver of the City's legal rights or any rights arising out of any provision of this Agreement.

7.3 Retention of Funds.

Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor's acts or omissions in performing or failing to perfonn Contractor's obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shal I not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein.

7.4 Waiver.

Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other tenn, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.

Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver.

Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

7.5 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party 0 I 004.0006/389802 I
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of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

7.6 Legal Action.

In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific perfonnance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Contractor shall file a statutory claim pursuant to Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue a legal action under this Agreement.

7.7 Termination Prior to Expiration of Term.

This Section shall govern any tennination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon written notice to Contractor. In addition, the Contractor may terminate this Contract for cause, upon sixty (60) days' advance written notice to City. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.

7.8 Termination for Default of Contractor.

If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7.9 Attorney's Fees.

If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs 0 I 004.0006/389802.1
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the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest.

Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor's performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

8.3 Covenant Against Discrimination.

Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

8.4 Unauthorized Aliens.

Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U .S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any 1 iabil ity or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorney's fees, incurred by City. 0 I 004 00061389802 1
ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Cypress, 5275 Orange Avenue, Cypress, California 90630 and in the case of the Contractor, to the person(s) at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9.3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment.

This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9.5 Severability.

In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 01004 0006/389802 l
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9.6 Warranty & Representation of Non-Collusion.

No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of "financial interest" shall be consistent with State law and shall not include interests found to be "remote" or "noninterests" pursuant to Government Code Sections 1091 or 1091.5.

Nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation, including but not limited to the Political Refonn Act (Government Code Sections 81000, et seq.)
Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Contractor's Authorized Initials�

9.7 Coi:porate Authority.

The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE]
0 I 004 0006/389802 I
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

ATTEST:

Alisha Farnell, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
Fred Galante, City Attorney
CITY:

City of Cypress, a municipal corporation
Scott Minikus, Mayor
CONTRACTOR:
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By:
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Address:
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Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: I) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. 0 I 004 0006/389802. I -18-
EXHIBIT "A"

SCOPE OF SERVICES
I .MS 4 Pennit Compliance Plan Development for current and subsequent Permits

2. Purchase of off the shelfMS4 software for tracking NPDES activities (only upon request).

3. Industrial/Commercial/Municipal Inspection Program
Update facility database, as needed, including a GIS map of the construction locations.

Conduct inspections on the identified Industrial and Commercial Facilities to ensure compliance. Subject to the Industrial General Permit (IGP) and Construction General Pennit (CGP).

Monitor and enforcement services, where necessary, to ensure continued compliance.

4. Illegal Discharges and Illicit Connections (ID/IC) Program Continue implementation of the City's Illegal Discharges/Illegal Connections Program and provide recommendations for modification as necessary.

5. New Development and Re-development Effectiveness Tracking The data will be used to assess the effectiveness of the Low Impact Development (LID) requirements for land development and to fulfill reporting requirements.

Perform post construction Water Quality Management Plan (WQMP) verification inspections and photographic stormwater treatment measures.

6. Public Education and Municipal Activities Programs
Assist with coordination, attendance, and implementation of public education and municipal activities programs
Examine City's current programs and update as necessary to comply with most current regulations

7. Preparation of annual Program Effectiveness Assessment (PEA) for submittal to the Santa Ana Regional Water Quality Control Board

8. Monitoring of all NPDES Regulatory and Legislative Activities

9. Represent the City at NPDES related Meetings
01004 0006/389802 I A-I
EXHIBIT "B"

SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
L DELETE subsection 1.1 and REPLACE with the following:
"I. I Scope of Services. In compliance with all telTt'ls and conditions of this Agreement, the Contractor shall provide those on-call services specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference, which may be referred to herein as the "services" or "work" hereunder. Consultant acknowledges and agrees that City has no obligation to utilize Consultant under this Agreement. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perfolTt'I the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in perfonning the work and services contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein.

Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one or more first-class firms perfonning similar work under similar circumstances."
IL DELETE subsection 1.8 and REPLACE with the following:
"1.8 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in a particular Task Order, as defined in Exhibit "A," or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation up to the amount authorized by the City Council (''Task Order Contingency"); or, in the time to perform of up to one hundred eighty ( 180) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.
0 l004 0006/389802 I
II. DELETE subsection 2.1 and REPLACE with the following:
"2.1 Contract Sum. For on-call services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference. For each Task Order, as defined in Exhibit "A," Contractor shall provide a not-to-exceed Task Order amount as further described in Exhibit "A" ("Contract Sum")."
III. DELETE subsection 3-4 and REPLACE with the following:
"3.4 Tenn & Extended Tenn. Unless earlier tenninated in accordance with Section 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of such services as may be requested by City from time-to-time, but not exceeding two (2) calendar years from the date hereof, except as otherwise provided in the Schedule of Perfonnance.

At the expiration of the term of this Agreement, if the City requires additional time for the Services to be perfonned, as confirmed by City to Contractor in writing, this Agreement shall be extended on a month-to-month basis. In such instance, in the absence of a written communication from City to Contractor to the contrary, the term of this Agreement shall be subject to termination upon thirty (30) days prior notice by either party. Such month-to-month extension shall not be deemed a renewal of the full term or an extension for any further term. City shall pay Contractor the applicable monthly Compensation or the pro-rata Compensation amount, and the month-to-month term shall be subject to every other term, covenant and condition in this Agreement that is consistent with and not contrary to a month-to-month term."
IV. The title of Article 5 shall read as follows:
"INSURANCE, INDEMNIFICATION, AND BONDS"
V. Section S.l(d) shall be amended to read as follows:
0 I 004.0006/389802 I
"Professional Liability. Professional liability insurance appropriate to the provision of design services. This coverage may be written on a "claims made" basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement.

The insurance must be maintained for at least 5 consecutive years following the completion of Contractor's services or the termination of this Agreement. During this additional 5-year period, Contractor shall annually and upon request of the City submit written evidence of this continuous coverage."
VL DELETE the second paragraph in Section 5.2 and REPLACE with the following:
0 I 004 0006/389802 I
"Contractor will provide 30 days advanced written notice by certified mail, return receipt requested to City of insurance policy amendments or cancellations."
8-3
EXHIBIT "C"

SCHEDULE OF COMPENSATION
I. Consultant shall perform the requested services on a Time and Material, Not-toExceed basis, in accordance with the following hourly rate schedule, attached hereto as Exhibit "C-1"
IL All Task Orders must be performed within the budgetary limits established for each project, unless authorized otherwise, in advance in writing, by the Contract Officer.

IIL All Task Orders shall be specified in writing, including but not limited to, the Not-toExceed fee for services rendered. 0 I 004 0006/389802 I C-1
Task
Program Management
Program Support
Program Support
EXHIBIT "C-1"

HOURLY RATE SCHEDULE
Classification
Program Manager
Environmental Analyst
Environmental Associate
Hourly
$130
$110
$100
The services listed above as well as any associated costs for labor, materials, equipment and supplies necessary to provide these services are included in the consultant 'sfee. 01004.0006/389802 I C-2
EXHIBIT "D"

SCHEDULE OF PERFORMANCE
The Contractor shall provide all administrative work in a timely manner. Certain work may require a separate schedule with completion milestones as directed by the contract officer.

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 5.

FROM: Douglas Dancs, Director of Public Works
DATE: 07/08/2024
SUBJECT: Approve Agreements to Replace the Roof and HVAC of a City-Owned Building at 10161 Moody Street (Cedar Glen Park), Project 378

RECOMMENDATION

1. Approve an Agreement for Construction Services with MDJ Management, LLC., for $507,766.02, and authorize a contingency of $76,000; and

2. Approve a Task Order for Construction Inspection Services to FCG Consultants, Inc., for $49,265.70, and authorize a contingency of $7,400; and

3. Appropriate $640,432 in the City Capital Projects Fund for the Roof and HVAC Replacement at 10161 Moody Street (Cedar Glen Park), Project 378; and

4. Transfer $620,432 from the Infrastructure Reserve Fund to the City Capital Projects Fund for Project 378; and

5. Increase estimated revenues by $20,000 in the City Capital Projects Fund.

DISCUSSION
The Cedar Glen park building’s four heating, ventilation, and air conditioning (HVAC) units are over 15 years old and need to be replaced. Additionally, heavy rains throughout the past few years have compromised the roof, which also needs to be replaced. Combining these projects is efficient and cost-effective, and minimizes disruptions to The Boys & Girls Clubs of Greater Anaheim-Cypress (Club) which has leased the building since 1982.

In 2018, the Club expanded the building (at its own cost) to add a teen center, replaced roof shingles and made minor roof repairs, which were expected to extend the roof’s useful life.

Unfortunately, the work only provided a short lifeline and the building now suffers significant leaks. A full roof replacement is recommended to avoid water damage and offers the opportunity to replace the aging HVAC units that no longer work reliably.

The Lease Agreement with the Club requires it to maintain $20,000 in an account for general building repairs and maintenance. Those funds will be applied toward the cost of the roof and HVAC replacement and the Club will replenish the $20,000 when the project is complete.

Public Works recommends Sourcewell ezIQC, an Indefinite Delivery, Indefinite Quantity (IDIQ) procurement process, for the project. Sourcewell competitively bids for the repair, alteration, modernization, and rehabilitation of infrastructure and facilities. The California Government Code and Municipal Code Section 21A-10(e) allows for cooperative purchasing agreements, enabling public entities to benefit from shared contracting efforts. Sourcewell has contracted with Gordian to administer the ezIQC program. Through Gordian, Public Works evaluated the project with the contractor, MDJ Management.

After a thorough review of the scope of work, MDJ Management submitted a $507,766.02 proposal for the roof and HVAC replacement. The expedited project scoping and procurement process was completed in about seven weeks, which is significantly faster than the six to eight months for traditional design and bidding. MDJ Management comes highly recommended and has completed similar projects for other agencies in Southern California.

It may take up to six months to receive the HVAC equipment. Public Works will coordinate with the Club to determine a construction start date to minimize disruptions to its operations.

Construction will require approximately two months, weather permitting.

FCG Consultants, one of the City’s on-call construction management firms, will inspect the project.

BUDGET IMPACT
The roof and HVAC replacements are not included in the FY 2024-25 Capital Improvement Program. A supplemental appropriation of $640,432 and a fund transfer from the Infrastructure Reserve Fund to the Capital Projects Fund for $620,432 is necessary to fund the project. Upon completion, the Club will reimburse the City $20,000. Future rehabilitation, replacement and improvements to the building will be incorporated into the Capital Improvement Program.

While funding is available in the Infrastructure Reserve Fund to pay for this project, inflation continues to dramatically impact construction costs and the City has had to repeatedly draw on its accumulated reserves for CIP programming and unanticipated projects, including this one.

Fortunately, the City's strong financial position affords this option, but it is not sustainable.

To avoid falling into a situation that requires the cancelation or delay of future projects due to rising costs and the lack of availability of resources, a comprehensive review of the CIP and Infrastructure Reserves is planned for FY 2024-25.

LEGAL REVIEW
The City Attorney has reviewed the Sourcewell ezIQC procurement process and the construction agreement and determined it is consistent with purchasing arrangements authorized by Municipal Code Section 21A-10(e). The construction component included in the contract recommended for award is compliant with Sourcewell unit prices, including labor. The City Attorney has reviewed and approved the agreements as to form.

APPROVED BY: Peter Grant, City Manager
Attachments
Contract Agreement
Task Order

June 25, 2024
Daniel Co
Assistant City Engineer
City of Cypress
Public Works Engineering
SUBJECT: PROPOSAL TO PROVIDE CONSTRUCTION INSPECTION SERVICES FOR THE BOYS AND GIRLS CLUB HVAC and ROOF REPLACEMENT, PROJECT 378
Dear Mr. Co,
Inc. is pleased to present our proposal to the City of Cypress to provide professional part-time construction inspection services for the Boys and Girls Club HVAC and Roof Replacement, Project 378 in accordance with Attachment “A” – Scope of Services and Attachment “B” – Schedule of Compensation. All work will be completed pursuant to the City of Cypress On-Call Construction Management and Inspection Services Contract dated June 24, 2024.

We look forward to partnering with the City on this project. If there are any questions regarding this proposal, please contact me at (714) 312-0317 or [email protected] with any questions you may have.

Sincerely,
Maha Fakhouri
President / CEO
Boys and Girls Club HVAC and Roof Replacement, Project 378 City of Cypress
June 25, 2024

Page 2 of 3 ends

ATTACHMENT “A”

SCOPE OF SERVICES
The scope of services includes part-time inspection services and project controls to assist our inspector in the field.

Below is a list of services included in this proposal:
• Represent the City’s interests with the overall construction inspection of this project. • Monitor the contractor's compliance with the project contract, specifications, and National Pollutant Discharge Elimination System (NPDES).
• Assist City staff with public relations, including distributing construction notices and responding to inquiries of residents and the general public. • Attend the preconstruction meeting and subsequent weekly field meetings, as needed. • Assist the City’s construction manager in monitoring and documenting the contractor’s adherence to the approved construction schedule.
• Be present on the job site when construction is in progress and when inspection is required.

Full-time inspection work is proposed as requested by the City. FCG will not be responsible for observing construction activities that are implemented when its inspector is not scheduled/present on site.
• Provide assistance and direction to technicians performing material tests, as needed. • Measure and verify the project pay item quantities in place. All pay item quantities must be confirmed with the contractor prior to submission of the invoice for payment. • Review the contractor's invoices.
• Prepare daily inspection reports (Daily Activity Report, Weekly Statement of Working Days, etc.) as required for this project.
• Review traffic control and coordinate adjustments as needed. • Identify items requiring corrective action by either the contractor or the City. Monitor and document timely corrective actions implemented by the contractor. • Develop punch list items and monitor corrections made.

Boys and Girls Club HVAC and Roof Replacement, Project 378 City of Cypress
June 25, 2024

Page 3 of 3 ends

ATTACHMENT “B”

SCHEDULE OF COMPENSATION
City of Cypress
Construction Inspection for
Boys and Girls HVAC and Roof Replacement Project 378
40 Working-Days Construction Duration
Exclusions to Scope and Fee: The following items are specifically excluded:

1. Night-time/weekend inspection and weekday hours in excess of a regular 8-hour shift that would be subject to overtime pay, unless so authorized in writing by the City

2. Submittal and RFI reviews

3. Special inspections
Role / Name Total
Hours
Hourly
Rate
Extended
Fee
Facilities Inspector 330 $149.29 $49,265.70
Total Estimated Fee $49,265.70
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 6.

FROM: Alisha Farnell, City Clerk
DATE: 07/08/2024
SUBJECT: Adopt an Ordinance Approving Electronic and Paper Methods of Filing Campaign Finance Disclosure Statements

RECOMMENDATION
Approve the second reading and adopt an Ordinance relating to campaign finance reporting and approving electronic and paper methods of filing campaign finance disclosure statements.

DISCUSSION
At its June 10 meeting, the City Council approved the first reading of an Ordinance amending Section 2-128 of the Cypress Municipal Code relating to campaign finance reporting and approving electronic and paper methods of filing campaign finance disclosure statements.

The Ordinance makes the required findings to approve the use of an electronic filing system for campaign disclosure statements, while also continuing to allow for paper filings for those committees or candidates who opt-out of the electronic system.

It is recommended the City Council approve the second reading and adopt the Ordinance, which will become effective August 9, 2024.

BUDGET IMPACT
None.

LEGAL REVIEW
The Ordinance was reviewed and approved by the City Attorney's office.

APPROVED BY: Peter Grant, City Manager
Attachments
Ordinance

ORDINANCE NO.

AN ORDINANCE OF THE CITY OF CYPRESS, CALIFORNIA
AMENDING SECTION 2-128 OF THE CYPRESS MUNICIPAL CODE

RELATING TO CAMPAIGN FINANCE REPORTING AND APPROVING

ELECTRONIC AND PAPER METHODS OF FILING CAMPAIGN

FINANCE DISCLOSURE STATEMENTS
WHEREAS, California Government Code Section 84615 provides that a legislative body of a local government agency may adopt an ordinance that requires an elected officer, candidate, committee, or other person required to file statements, reports, or other documents required by Chapter 4 of the Political Reform Act, except those who contributions and expenditures each total less than Two Thousand Dollars ($2,000) in a calendar year, to file such statements, reports, and other documents online or electronically with the City Clerk; and
WHEREAS, on March 25, 2024, the City entered into an agreement with a vendor certified by the Secretary of State for campaign disclosure documents that meets the requirements set by Government Code Section 84615; and
WHEREAS, the City Council approves the use of an electronic system, which includes that it will operate securely and effectively and will not unduly burden filers; it must be available free of charge to filers and the public for viewing filings; and it must include a procedure for filers to comply with the requirement that they sign statements and reports under the penalty of perjury.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS DOES ORDAIN AS FOLLOWS:

Section 1. Section 2-128 of the Cypress Municipal Code shall be amended in its entirety to read as follows:
2-128. Reports.
(a) Required Use of Electronic Filing System.
(1) Except as set forth in subsection (i) of this Section 2-128, any candidate, committee, or other person required to file specified statements, reports, forms or other documents detailing contributions, expenditures, independent expenditures or payments as required by Chapter 4 of Title 9 of the California Government Code (also known as the Political Reform Act), and that has received contributions or made expenditures of $2,000 or more in a calendar year, may electronically file such statements using the City’s online system according to procedures established by the City Clerk.

However, to ensure reporting continuity, once a statement, report, form, or other document is filed electronically on behalf of any candidate, committee, or other person, all future statements, reports, forms, and other documents filed on behalf of that candidate, committee, or other person must be filed electronically.
(2) A candidate, committee, or other person may choose not to use the electronica filing system by filing all original statements, reports, forms, or other documents in paper format with the City Clerk, until such time as the City Council determines that electronic filing is mandatory for all filers.
(b) Paper Filing Not Required After Electronic Filing. Any candidate, committee, or other person who has electronically filed a statement, report, form, or other document using the City’s online system is not also required to file a copy of that document in a paper format with the City Clerk. (c) Report Form. Reports, statements, forms or other documents required shall be on the forms required by the Political Reform Act, and shall contain the following:
(1) The name, street address, and telephone number of the person or committee making the contribution, expenditure, independent expenditure, or payment and of the committee’s treasurer. (2) If the report is related to a candidate, the full name of the candidate and the city office for which the candidate seeks nomination or election.
(3) If the report is related to a city measure, the full name by which the city measure is designated or proposed to be designated. (4) The total amount of contributions received related to the candidate for city office or city measure during the period covered by the report.
(5) The total amount of expenditures related to the candidate for city office or city measure during the period covered by the report. (6) The total amount of independent expenditures related to the candidate for city office or city measure during the period covered by the report.
(7) The total amount of payments made related to the candidate for city office or city measure during the period covered by the report. (8) For each person for whom a contribution has been received, and/or from each person to whom an expenditure, independent expenditure, or payment has been made on behalf of a candidate for city office or city measure during the period covered by the report:
a. His or her full name.
b. His or her street address.
c. If the person is a committee, the name of the committee, the number assigned to the committee by the Secretary of State, or if no number has been assigned, the full name and street address of the treasurer of the committee.
d. The date of the contribution, expenditure, independent expenditure, and/or payment.
e. The amount of the contribution, expenditure, independent expenditure, and/or payment.
f. A brief description of the consideration for which each such expenditure or independent expenditure was made and the value of the consideration if less than the total amount of the same.
g. The cumulative amount of expenditures, independent
expenditures, and/or payments to such person over the period covered by the report.
(d) Filing Schedule. Reports, statements, forms or other documents required shall be filed semi-annually and/or as required under the Political Reform Act. Reports, statements, forms or other documents detailing contributions and/or expenditures shall be filed for the semiannual periods covering January 1 through June 30 and July 1 through December 31 by the deadlines set by the Fair Political Practices Commission. A supplemental report shall also be filed for any candidate for city office or for any city measure after the closing date of the semiannual report period in which contribution(s), expenditure(s), independent expenditure(s) or payment(s) exceeds $500. Such supplemental report shall be filed with the City Clerk’s office by the deadlines set by the Fair Political Practices Commission. (e) Filing Options When a Copy Must be Filed with City Clerk. In any instance in which an original statement, report, form or other document must be filed with the Secretary of State or other agency, a copy of that document is required to be filed with the City Clerk, the filer may electronically file a copy with the City Clerk, or may file in a paper format.
(f) Paper Filing When Cannot File Electronically. If, for technical reasons, the City’s system is not capable of accepting a particular type of statement, report, form or other document, a candidate, committee, or other person shall timely file that document in paper format with the City Clerk. (g) Internet Posting of Data. The City Clerk shall ensure that the City’s system makes all electronically-filed statements, reports, forms, or other documents available on the internet in an easily understood format that provides the greatest public access. The data shall be made available on the internet shall not contain the street name of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. The City Clerk’s office shall also make a complete, unredacted copy of the statement, report, form or other document available to the Fair Political Practices Commission for Government Code Section 87200 filers. (h) Records Retention. The City Clerk’s office shall maintain records according to the City’s records retention schedule and applicable State law commencing from the date filed, a secured, official version of each online or electronic statement, report, form, or other document, which shall serve as the official version of that record.
(i) The reporting requirement contained herein shall apply only to candidates seeking election for city office, their controlled committees, committees formed or existing primarily to support or oppose the candidacy of a candidate for city office, to committees formed or existing primarily to support or oppose the qualification of, or passage of, a local ballot measure which is being voted on only in the city, and to city general purpose committees active only within the city.

Section 2. Severability. That the City Council hereby declares that it would have passed this Ordinance sentence by sentence, paragraph by paragraph, and section by section, and does hereby declare that any provisions of this Ordinance are severable, and, if for any reason any sentence, paragraph or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.

Section 3. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 4. Certification. The Mayor shall sign and the City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 24th day of June, 2024. _______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
__________________________________

CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of said City Council held on the 24th day of June, 2024, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
__________________________________

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 7.

FROM: Matt Burton, Director of Finance and Administrative Services DATE: 07/08/2024
SUBJECT: Adopt a Resolution Approving a Three-Year Memorandum of Understanding with the Cypress Employees' Association

RECOMMENDATION

1. Adopt a Resolution approving a Memorandum of Understanding with the Cypress Employees' Association from July 1, 2024 through June 30, 2027; and

2. Approve a $125,000 appropriation in the General Fund for FY 2024-25 salary and benefit costs which exceed the adopted budget.

DISCUSSION
The City has concluded negotiations with the Cypress Employees' Association (CEA). The CEA is composed of 39 budgeted positions ranging from professional to clerical support within all departments, with an annual cost of approximately $5.5 million. The parties have met in good faith and have reached an agreement on changes to compensation and benefits. The attached Resolution and Memorandum of Understanding (MOU) includes the following major provisions:

Term:

Three Years – July 1, 2024 through June 30, 2027
Compensation:
5% Cost of Living Adjustment (COLA) effective July 5, 2024 A minimum COLA of 4% up to a maximum of 4.5% (based on CPI) effective July 4, 2025
A minimum COLA of 4% up to a maximum of 4.5% (based on CPI) effective July 3, 2026
Health Insurance:

Maximum monthly City paid health insurance adjustments as follows: $1,400 to $1,575 effective January 2025; $1,575 to $1,650 effective January 2026; and $1,650 to $1,700 effective January 2027.

Other Pay Provisions (Effective July 2024):

Expand bilingual pay eligibility to all members.

Increase annual uniform allowance for Police Services Officers and Community Outreach Officer from $650 to $750.

Increase annual uniform allowance for Police Clerk I/II from $600 to $700.

Increase monthly contribution to Retiree Health Savings from $75 to $125.

One-Time Retirement Incentive:

Provide an optional, one-time retirement incentive to employees age 50 or older, with 10 or more years of continuous full-time service with the City.

Amount of incentive is based on years of service with Cypress:
25 or more years - $25,000
20-24 years - $20,000
15-19 years - $15,000
10-14 years - $10,000
The one-time payment will be made to the employee's Retiree Health Savings Plan or deferred compensation (457) plan.

Eligible employees must make an irrevocable election to retire by August 31, 2024 with a retirement date no later than December 31, 2024.

In addition, the MOU includes miscellaneous, non-substantive corrections and language updates.

BUDGET IMPACT
The compensation and benefit adjustments conform with authorization provided by the City Council. The ongoing first year cost increases total approximately $278,000 and sufficient amounts are included in the recently adopted FY 2024-25 Budget to provide for the recommended adjustments. The ongoing annual cost increases associated with the second and third years of the agreement range between $180,000 and $200,000 and will be incorporated into future budgets. The total ongoing costs at the end of the three years range between $625,000 and $660,000 depending on CPI.

It is anticipated there will be several members of the CEA that take the retirement incentive and the estimated cost of the incentive is expected to be approximately $125,000. While there will likely be sufficient salary savings in the General Fund due to vacancies resulting from the retirement incentive to pay these one-time costs, the incentive was not built into the FY 2024-25 Budget. Therefore, it is recommended an additional appropriation of $125,000 be approved for the costs of the incentive and sufficient amounts are available in the unassigned fund balance of the General Fund.

LEGAL REVIEW
The MOU has been reviewed by the City's legal counsel for labor relations.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution - CEA MOU
CEA MOU - Final
CEA MOU - Redline
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL AND ACTING AS EX-OFFICIO BOARD OF

DIRECTORS OF THE CYPRESS RECREATION AND PARK DISTRICT OF THE CITY

OF CYPRESS, APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CYPRESS AND THE CYPRESS EMPLOYEES’ ASSOCIATION

CONCERNING WAGES, SALARIES, FRINGE BENEFITS AND CONDITIONS OF

EMPLOYMENT
WHEREAS, Section 37206 of the Government Code requires the City Council to prescribe the time and method of paying salaries and wages of employees of the City; and
WHEREAS, the City Council has authorized and directed, under the provisions of the Cypress City Code and Resolution No. 1635, the preparation of a compensation plan for all employees in the municipal service of the City of Cypress; and WHEREAS, the City of Cypress, hereinafter referred to as “City”, and the Cypress Employees’ Association, hereinafter referred to as “Association”, have met and conferred in accordance with the requirements of the Meyers-Milias-Brown Act; and WHEREAS, the City and the Association have reached agreement on wages, salaries, fringe benefits and conditions of employment effective July 1, 2024 through June 30, 2027.

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

SECTION 1. Memorandum of Understanding
The Memorandum of Understanding (MOU), effective July 1, 2024, is hereby approved and incorporated herein by reference, a copy of which is on file in the Office of the City Clerk.

SECTION 2. This Resolution shall become effective retroactive to July 1, 2024, and all Resolutions and parts of Resolutions in conflict herewith are hereby rescinded.

PASSED AND ADOPTED by the City Council of the City of Cypress, and acting as ex-officio governing Board of Directors of the Cypress Recreation and Park District, at a regular meeting held on the 8th day of July, 2024. ______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 8th day of July, 2024, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

Page 1 of 27 ends

MEMORANDUM OF UNDERSTANDING BETWEEN THE

CITY OF CYPRESS AND THE CYPRESS EMPLOYEES' ASSOCIATION

ARTICLE I - RECOGNITION
Section 1. Pursuant to the Provisions of the Employer-Employee Relations Resolution No. 970, as amended, the City of Cypress (hereinafter called the "City" and/or "Employer" interchangeably) has recognized the Cypress Employees' Association as the majority representative of the employees in the bargaining unit, which includes all general miscellaneous classifications.

Section 2. The City shall recognize the Association as the representative of the employees in the classifications and assignments set forth in Section 1. above for the purpose of meeting its obligation under this Agreement, the Meyers-Milias-Brown Act, Government Code §3500, et. seq., when City Rules, Regulations or laws affecting wages, hours and/or other terms and conditions of employment are amended or changed.

Section 3. Recognizing the above-mentioned body, the City encourages open and good faith negotiations between the City and its employees through their Employees' Association Representatives.

ARTICLE II - NONDISCRIMINATION
Section 1. The City and the Association agree that they shall not discriminate against any employee because of any legally protected classification recognized by state or federal law, including but not limited to: race, color, sex, age, national origin, disability, political or religious opinions or affiliations. The City and the Association shall reopen any provision of this Agreement for the purpose of complying with any final order of the state or federal agency or court of competent jurisdiction requiring a modification or change in any provision of this Agreement in compliance with state or federal anti-discrimination laws.

Section 2. Americans with Disabilities Act (ADA) and California Fair Employment and Housing Act (FEHA). To comply with state and federal law, the language below shall apply:

A. The ADA/FEHA requires reasonable accommodations for individuals protected under the ADA/FEHA, and because reasonable accommodations must be determined on an individual, case-bycase basis, exceptions to the provisions of this Agreement may be required for the City to avoid discrimination in the hiring, promotion, granting of permanency, transfer, layoff, reassignment, termination, rehire, rates of pay, job and duty classification, seniority, leaves, fringe benefits, training opportunities, hours of work or other terms and privileges of employment.

B. The City has the legal obligation to meet with the individual employee or applicant to be accommodated before any adjustment is made in working conditions. The Association will not be notified of these proposed accommodations prior to implementation by the City, unless the employee desires such notice.

C. Any accommodation provided to an individual protected by the ADA/FEHA shall not establish a past practice, nor shall it be cited or be used as evidence of a past practice in the grievance, discipline, or other legal procedure.

Page 2 of 27 ends

ARTICLE III - COMPENSATION PLAN
Section 1. Basic Compensation Plan.

A. All employees covered by this Agreement shall be included under the Basic Compensation Plan. Every position under this Plan shall be assigned a range established by the City Council by resolution. All pay changes shall be at the beginning of the closest start of the pay period, unless there is a special justification as approved by the Personnel Officer. The salary schedule shall consist of nine steps within each range: A step, A1 step, B step, B1 step, C step, C1 step, D step, D1 step and E step.

B. The A step, is the minimum rate and is normally the hiring rate for the class. An employee may be assigned, upon appointment, to other than the A step upon the recommendation of the department head and the approval of the City Manager or their designee when it is decided that such action is in the best interest of the City.

C. Employees hired at the A step may be eligible for a merit adjustment at the end of six months of employment. Employees hired above the A step may be eligible for a merit adjustment at the end of one year of employment.

D. Subsequent merit adjustments are intended to encourage an employee to improve their work and to recognize seniority and increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of one year of service at their current step. An employee can move either one or two steps for merit adjustments, based upon the recommendation of the department head and approval of the City Manager or their designee.

E. All rates shown are in full payment for services rendered and covers full payment for the number of hours now being regularly performed in each class.

F. The comprehensive wage and salary plan, as outlined herein, is based on a 40-hour work week for all employees covered by this Agreement.

Section 2. Initial Compensation. All new employees appointed to a position in the competitive service shall be paid a salary or wage within the established range for the position's class. The initial employment shall generally be at the minimum rate for the class. However, the appointing power may, with approval of the City Manager or their designee, when circumstances warrant it, appoint at other than the minimum step.

Section 3. Evaluation Date Shall be Established as Follows:

A. Employees appointed, promoted or reinstated on or between the first and the fifteenth day of the month inclusive shall, for the purpose of eligibility for consideration of future compensation increases, have the first day of that same month as their evaluation date.

B. Employees appointed, promoted or reinstated on or between the sixteenth and the last day of the month inclusive shall, for the purpose of eligibility for consideration of future compensation increases, have the first day of the month immediately following, as their evaluation date.

C. Evaluation dates shall change upon promotion or reclassification. Evaluation dates shall not change following demotions or transfers.

Page 3 of 27 ends

Section 4. Advancement Within Salary Range.

A. In order to properly compensate an employee, advancement in salary shall be based on merit.

B. Advancements in salary shall not be automatic, but shall depend upon increased service value of the employee to the City.

C. The department head and/or the employee's immediate supervisor shall be responsible to evaluate employees fairly in an unbiased fashion for the determination of job performance.

Advancement shall be made only upon recommendation of the department head with approval of the City Manager or their designee.

D. Employees beginning at A step must be reviewed for performance advancement prior to the completion of six months of service from the date of appointment. Thereafter, an employee must be reviewed at least once every twelve months from the effective date of their last performance step increase, special performance advancement or promotion. Nothing contained herein shall restrict the department head from denying the increase after evaluation, nor shall it prevent them from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated.

E. It shall be the responsibility of each supervisor to establish realistic achievement levels for each step increase within a salary range. Achievement levels may be formal or informal and shall be reviewed by the department head for the purpose of maintaining uniformity of standards throughout the department.

F. Supervisors/Managers evaluating employees (who are not at the top of their pay range) will use the following merit-based rating criteria to determine the amount of an increase an employee is eligible to receive:
• Rating of Outstanding – Eligible for two half steps, which represents a 5% increase • Rating of Satisfactory – Eligible for one half step, which represents a 2.5% increase • Rating of Needs Improvement or Unsatisfactory – Not eligible for an increase Section 5. Salary Increases Following Promotion. When an employee in the City is promoted to a position with a higher salary range, such employee shall automatically be entitled to the lowest step in the higher salary range that would represent a salary increase of approximately 5% over the base salary received immediately prior to the promotion (e.g. approx. 5% is 4.5% or higher).

Section 6. Salary Decreases Following Demotion. In the case of a demotion of an employee in the department to a class with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new class as recommended by the department head and approved by the City Manager or their designee. The employee shall retain their previous anniversary date.

Section 7. Salary Following Transfers. In the case of the transfer of any employee from one position to another in the same class to which the same salary range is applicable, the employee shall remain at the same step and shall retain their same anniversary date.

Section 8. Adjustment of Salary Ranges. When a salary range for a given classification is revised upward or downward, the positions within the affected classifications shall have their existing salary adjusted to the same relative step in the new salary range and their evaluation date shall not be

Page 4 of 27 ends

changed.

Section 9. Salary and Benefits on Suspension. During suspension from City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except they shall not forfeit their medical health plan, dental insurance plan, vision insurance plan, retirement plan, disability insurance or life insurance plans. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment to compensate for loss of income and benefits during the period of suspension.

Section 10. Salary Increases
Salary increases for all represented classes will be implemented at the beginning of the pay period as follows and as reflected in Exhibit “A” attached hereto:

Effective July 5, 2024, a five percent (5%) range adjustment.

Effective July 4, 2025, based on the 12-month May 2025 CPI-U for Los Angeles-Long BeachAnaheim, a minimum 4% to a maximum 4.5% range adjustment.

Effective July 3, 2026, based on the 12-month May 2026 CPI-U for Los Angeles-Long BeachAnaheim, a minimum 4% to a maximum 4.5% range adjustment.

Section 11. Payroll Schedule and Direct Deposit.

The City’s payroll is based on a bi-weekly pay schedule with the pay day occurring every other Friday following the end of a pay period. All employees are required to participate in the City’s direct deposit payroll program.

ARTICLE IV - HOURS OF WORK
Section 1. Standard Workweek. The standard workweek shall be 40 hours. However, all employees of the department shall be subject to be called for service at any time to meet any and all emergencies or unusual conditions which, in the opinion of the department head or designee, may require such service from any of said employees.

Section 2. 5/8 Work Schedule. Employee works five 8-hour shifts in a 7-day FLSA workweek.

Section 3. 9/80 Work Schedule. Employee works eight 9-hour days and one 8-hour day in two 7-day FLSA workweeks.

Section 4. 4/10 Work Schedule. Employee works four 10-hour shifts in a 7-day FLSA workweek. Classifications subject to this work schedule typically include: Police Clerk I, Police Clerk II and Police Services Officer.

Section 5. 3/12.5 Work Schedule. For those employees in the classification of Police Services Officer assigned to patrol/jail duties, employee works three 12.5-hour shifts with four consecutive days off in each 7-day work cycle of a 28-day work period, except that the employee must work one additional 10-hour shift during the work period. The 12.5-hour shift shall include a paid lunch/meal period. Police Management may assign a maximum of six employees in the classification of Police Services Officer to patrol/jail duties.

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ARTICLE V - OVERTIME COMPENSATION
Section 1. Definition. Overtime work for regular full-time, regular part-time, and probationary employees shall be defined as any hours worked beyond 40 hours in a 7-day Fair Labor Standards Act (FLSA) workweek. Leave time, with the exception of sick leave, will be counted toward that calculation. Employees in the classification of Police Services Officer assigned to patrol/jail duties under the 3/12.5 Work Schedule shall earn overtime after the first 160 hours of time worked in a 28- day cycle, as allowed under the FLSA 7(k) exemption.

Section 2. Compensation. Authorized overtime shall be compensated for at the rate of one and one-half (1-1/2) times the regular rate of pay or by accruing compensatory time at the rate of one and one-half (1-1/2) hours for each hour of overtime worked. All paid leaves will be counted as time worked, with the exception of sick leave.

Section 3. Use of Compensatory Time. Employees shall be permitted to accumulate a maximum of 120 hours of compensatory time. All accumulated compensatory time shall be paid by the City to the employee in the December special payroll of each year unless the employee requests that up to a maximum of 80 hours of accumulated compensatory time be carried over to the following payroll year. Requests to carry over hours must be made in writing to Human Resources by December 15 of the prior calendar year. For example, employees wishing to carry over hours from calendar year 2024 to 2025, must submit the request in writing to Human Resources by December 15, 2024. Should an employee desire to take compensatory time off, they shall file a written request with the department head who shall grant time off unless it interferes with the normal operation of the department. The granting of compensatory time off shall be at the sole discretion of the department head or their designee.

Section 4. Overtime Reporting. In order for an employee to earn compensation for overtime, they must receive prior supervisor or department head approval. Overtime worked to meet an emergency situation does not require advance approval, but shall be certified by the department head before being credited to the employee's record.

Section 5. Authorization. It is the policy of the City to avoid the necessity for overtime work.

However, when overtime work is necessary and consistent with the efficient operation of the City, such overtime shall be authorized, but shall be kept at a minimum.

ARTICLE VI - SPECIAL PAY PROVISIONS
Section 1. Callback. Employees in the classification of Police Services Officer assigned to Property and Evidence shall be paid a minimum of two hours of overtime when called back for other than a normal shift or workday assignment and has already departed from the work premises. All other employees shall be paid for time worked. Employees called back as defined above shall be paid one and one-half (1-1/2) times the employee's regular rate of pay. Callback time shall commence from the time the employee reports to the work location.

Section 2. Shift Differential Pay (SDP) – Employees in the classification of Police Services Officer who work a regularly scheduled night shift assigned for the duration of a shift rotation period, as designated by Police Management, are eligible for Shift Differential Pay (SDP). A night shift is defined as 5:30 P.M. to 6:00 AM. SDP shall be paid at 5% above the employee’s current hourly rate of pay for all regular and overtime hours worked. A maximum of three employees in the classification of Police Services Officer may be assigned.

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Section 3. Training Time. When an employee is sent to a training program at the request of the City, the employee shall be paid for actual hours attending the training (typically 8 hours) and such hours of pay shall be credited towards the computation of overtime. The department shall also pay such reasonable expenses as may be incurred by the employee in traveling to and from the training course as well as for meals and lodging. The department head may request receipts for meals and lodging, as well as transportation, and for the purchase of any materials required by the training course. Reimbursement for lodging shall apply to training courses which require overnight lodging.

Section 4. Bilingual Pay.

A. Subject to the conditions of this Section, employees who, in the course of their assignment, may be required to speak or understand another approved language besides English or translate such language to English on a regular basis, will be compensated $100.00 per month.

B. An employee may apply for bilingual pay at any time and will be responsible for initiating a written request to Human Resources. All requests shall be subject to the department head and Personnel Officer’s approval and only those assignments that are determined to reasonably utilize bilingual skills on a regular basis in a language beneficial to the department, shall be considered.

C. Human Resources shall administer competency testing to certify the employee is eligible for bilingual pay based on the employee’s basic bilingual skills proficiency. Such certification shall be a condition to qualify for bilingual pay.

D. An employee who becomes certified to receive bilingual pay shall be compensated such pay effective the beginning of the first pay period immediately following certification. Human Resources shall be responsible for processing appropriate forms for additional pay.

E. In the event an employee is not successful in passing such competency testing to qualify for bilingual pay, said employee may reapply for eligibility at least three months after the testing.

F. If it is determined that the employee is no longer utilizing bilingual skills on a regular basis due to disability (more than one month), extended leave of absence, or similar circumstance, bilingual pay will cease at the beginning of the payroll immediately following said date. Such determinations shall be made by the Personnel Officer.

G. Any consideration for adding and/or eliminating languages to this provision shall be made by the department head and Personnel Officer. Such considerations shall be made on department needs and neighboring cities’ ethnic population.

H. Bilingual pay will be suspended after 30 consecutive days on any leave of absence, either paid or unpaid, and will be effective beginning the 31st day. Bilingual pay will be reinstated on the first payroll back from leave of absence (worked 80 hours). If an employee returns from an extended leave of absence, only to go back on leave (within a one-year period of their return), bilingual pay will be suspended effective immediately (no new 30-day wait period).

Section 5. Educational Incentive Pay. The employee listed below shall be compensated for educational incentive pay as indicated. No other employees shall be eligible to receive education incentive pay. Education incentive pay will be suspended after 30 consecutive days on any leave of absence, either paid or unpaid, and will be effective beginning the 31st day. The allowance will be reinstated on the first full payroll back from leave of absence (worked 80 hours). If an employee returns from an extended leave of absence, only to go back on leave (within a one-year period of their return), the allowance will be suspended effective immediately (no new 30-day wait period).

EMPLOYEE POSITION EDUCATION INCENTIVE PAY
Pat Hough Administrative Services Tech II $30.00/month

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Section 6. Shoe Allowance. City and Association acknowledge and agree the City will provide a shoe allowance for protective footwear to employees in the following classifications: Administrative Services Technician, Code Enforcement Officer, and Engineering Aide. The shoe allowance is in the amount of $100.00 per MOU contract year. Protective footwear, under this provision, worn by the above classifications shall provide protection against exposure to foot injuries from electrical hazards, hot, corrosive, poisonous substances, falling objects, crushing or penetrating actions. Safety shoes or boots worn as protective footwear shall meet the standards established by Cal-OSHA.

Section 7. Uniform Allowance.

A. Designated police department employees who are required to wear a uniform shall receive a biannual uniform allowance in accordance with the following:

Community Outreach Officer $375.00
Police Clerk I $350.00
Police Clerk II $350.00
Police Services Officer $375.00
B. The uniform allowance will be suspended after an employee is off work for 30 consecutive days on any leave of absence, either paid or unpaid, and will be effective beginning the 31st day. For example, if a Police Services Officer is off work starting February 15 and returns to work on May 1, they are off for a total of 75 days. The Police Services Officer will not be eligible to receive uniform allowance for 45 days and the biannual payment of $375 will be prorated. In this instance, the employee is not eligible to receive 25% of their biannual allowance (45 days during the 180-day sixmonth period). Therefore, when the allowance is paid in June, the Police Services Officer would be paid $281.25 (75% of $375). The allowance will be reinstated on the first full payroll back from leave of absence (worked 80 hours). If an employee returns from an extended leave of absence, only to go back on leave (within a one-year period of their return), the allowance will be suspended effective immediately (no new 30-day wait period).

ARTICLE VII - HOLIDAYS

Section 1. Recognized Holidays.

A. For pay purposes, the following holidays are recognized as municipal holidays for regular employees: New Year's Day, Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, the Friday following Thanksgiving Day, Christmas Eve Day and Christmas Day. Employees shall earn 8 hours for each holiday.

Employees must use other forms of accrued leave to make up the difference between holiday hours earned and those required to be used when working an alternative work schedule.

B. Beginning the first pay period of the payroll year current employees shall be credited with one floating holiday (9 working hours). Employees hired after the beginning of the payroll year, but before September 1 of the payroll year, will be credited with one floating holiday. The floating holiday may be taken subject to approval of the department head after consideration of the department workload and other staffing considerations such as, but not limited to, leave schedules of other employees already approved, sick leave and position vacancies. The floating holiday must be taken as paid time off in the payroll year of crediting. There shall be no cash payment for unused floating holiday hours.

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C. For employees who are scheduled to work on a holiday or the holiday falls on their scheduled day off, the holiday leave may be used during the payroll year. There shall be no carryover of unused holiday.

D. When an employee who is required to work on a holiday becomes ill and is unable to report to work that day, the employee shall be paid at the straight time rate for the sick leave hours scheduled to work on said day, and the holiday hours will remain in their leave bank for use during the payroll year.

E. When a holiday falls on a Sunday, the following Monday shall be considered the holiday.

When a holiday, falls on a Saturday, the preceding Friday shall be considered the holiday.

F. Religious holidays requested off shall be done so in writing to the department head. If approved, such time shall be charged against accumulated vacation, compensatory time, personal leave, holiday or floating holiday.

Section 2. Holidays Falling During Approved Leaves of Absence Without Pay. Any employee on an approved leave of absence without pay, having the holiday fall during the period of such leave of absence without pay, shall be eligible for such holiday pay only in those instances where said employee has worked either the day before or the day immediately following said holiday.

ARTICLE VIII - PROBATIONARY PERIOD
Section 1. Regular Appointments Following Probationary Period.

A. The original appointment of every employee, other than those whose appointment is exempt, shall be tentative and subject to a probationary period of twelve (12) months of service.

B. The promotional appointment of every employee shall be tentative and subject to a probationary period of six months.

C. Human Resources shall notify the department head and the probationer concerned, two weeks prior to the termination of the probationary period.

D. If the service of the probationary employee has been satisfactory, the department head shall file with Human Resources a statement, in writing, to such effect stating that the retention of such employee in the service is desired. No actions changing an employee from probationary to regular status shall be made or become effective until approved by the Personnel Officer.

Section 2. Objective of Probationary Period. The probationary period shall be regarded as a 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.

Section 3. Employee Performance Reports.

A. Each probationary employee shall have their performance evaluated at the end of each three months of service or at a more frequent interval when deemed necessary by the appointing power. Regular employees shall have their performance evaluated annually or at more frequent

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intervals when deemed necessary by the appointing power. Such evaluations shall be reported in writing and in a form approved by the Personnel Officer.

B. An employee's performance evaluation shall be filed with Human Resources and made a part of the employee's personnel records, with one copy retained by the department, and one copy given to the employee.

Section 4. Rejection of a Probationary Employee.

A. During the probationary period, an employee may be suspended, demoted or terminated any time by the department head, with approval of the City Manager, without cause and without right of appeal. Notification of rejection, in writing, shall be served on the probationary employee and a copy filed with Human Resources.

B. An exception will be applied where the probationary employee's job termination or dismissal is based on charges of misconduct which stigmatizes their reputation or seriously impairs their opportunity to earn a living, or which might seriously damage their standing and association in the community. Where there is such a deprival of a "liberty interest", the employee shall be given predisciplinary procedural due process as defined in the Personnel Rules. Prior to the disciplinary action becoming final, the employee must be notified of their right to the appeal procedures as outlined in the Personnel Rules.

ARTICLE IX - VACATION
Section 1. Eligibility. All regular full-time and regular part-time employees, having completed a minimum of six months continuous service with the City, and annually, thereafter, shall be eligible for a paid vacation at their then current rate of pay.

Section 2. Vacation Accrual.

A. Each regular full-time and probationary employee shall accrue vacation leave by the following formula:

Hours/Month Year of Employment Annual Amount (Hours)

1. 6.6670 1st year 80 hours.

2. 7.3334 2nd year 88 hours.

3. 8.0000 3rd year 96 hours.

4. 8.6667 4th year 104 hours.

5. 9.3334 5th year 112 hours.

6. 10.0000 6th year 120 hours.

7. 10.6667 7th year 128 hours.

8. 11.3334 8th year 136 hours.

9. 12.0000 9th year 144 hours.

10. 12.6667 10th year 152 hours.

11. 13.3334 11th year 160 hours, and each month
thereafter.

Section 3. Anniversary Date.

A. Employees hired on or between the first and fifteenth day of the month shall have the first day of that same month as their anniversary date.

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B. Employees hired on or between the sixteenth and the last day of the month shall have the first day of the following month as their anniversary date.

Section 4. Maximum Accrual. An employee may accumulate unused vacation to a maximum of the amount accrued in the 24 months immediately preceding the employee's anniversary date of employment. Vacation shall cease accruing subsequent to reaching said maximum with further accrual occurring only upon the vacation balance falling below the maximum accumulation.

Section 5. Use of Vacation.

A. The time at which an employee's vacation is to occur shall be determined by the department head with due regard for the wishes of the employee and particular regard for the needs of the service.

B. An employee who has completed five years or more of continuous service and who has taken 40 cumulative hours of vacation in the current payroll year may elect to be paid for up to a maximum of 80 hours of accrued vacation in the following calendar year. Request for payment shall be made in writing to Human Resources by December 15 of the prior calendar year for the requested payment in the subsequent December’s special payroll. For example, if an employee submits a payout request of 80 hours prior to December 15, 2024 and is deemed eligible to receive a payout, the employee will be paid for 80 hours in December 2025 (if accrued vacation at that time is equal to or exceeds 80 hours).

Section 6. Vacation Payment at Termination.

A. Employees terminating employment shall be paid in a lump sum for all accrued vacation leave.

B. When termination is caused by the death of the employee, said payment for unused vacation shall be paid to the beneficiary designated by the employee. Such designation shall be in writing, signed by the employee and filed with Human Resources. In the event an employee has not designated a beneficiary, the payment shall be made to the estate of the employee.

Section 7. Vacation Earned During Leave of Absence. No vacation leave shall be earned during any leave of absence without pay for each 30-day period of such leave.

Section 8. Vacation - Miscellaneous. Employees shall not work for the City during their vacation and, thereby, receive double compensation from the City.

ARTICLE X - LEAVES OF ABSENCE
Section 1. Authorized Leave of Absence Without Pay.

A. Excluding leave which may fall under the Federal Medical Leave Act (FMLA) or the California Family Rights Act (CFRA), upon recommendation from the department head, with approval of the City Manager, a regular employee may be granted a leave of absence without pay in cases of emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed one year. Approval of such leave shall be in writing and a copy filed with Human Resources.

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B. At the expiration of the approved leave, within a reasonable period of time, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted.

Failure on the part of the employee on leave to report promptly at such leave's expiration, within a reasonable time after notice to return to duty, shall be cause for discharge.

C. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits except as specifically provided for in this Agreement. The City shall contribute to an employee's medical health plan, dental insurance plan, disability insurance plan, life insurance plan and retirement plan for the first 30 days of an employee's authorized leave of absence. Thereafter, the City shall not have any obligation to contribute to an employee's medical health plan, dental insurance plan, disability insurance plan, life insurance plan and retirement plan.

Employees on unpaid leave of absence do not accrue vacation or sick leave and are not eligible for any other paid leave.

Section 2. Bereavement Leave. Regular and probationary full-time employees may be granted a paid bereavement leave of absence by reason of death in the immediate family which shall be restricted and limited to father, mother, brother, sister, spouse, registered domestic partner, child, grandmother, grandfather, mother-in-law, or father-in-law. Upon approval of said paid leave, the employee shall be allowed a maximum of 40 hours of bereavement leave.

Section 3. Military Leave of Absence.

A. Military leave shall be granted in accordance with the provisions of state and federal law.

All employees entitled to military leave shall give the department head an opportunity within the limits of military regulations, to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the department head of such leave request 10 working days in advance of the beginning date of such leave.

B. In addition to the provisions of state and federal law, the City shall continue to provide to said employee the current health benefits medical, dental, disability and life insurance, and retirement (if applicable) for the first six months of military leave. During said period, the employee shall be required to pay to the City the same co-payments as required of other employees in the bargaining unit. After the first six months of military leave, the employee may continue said health benefits at their cost.

Section 4. Pregnancy Disability Leave of Absence.

A. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave for a maximum period of four months provided that a lesser period may be granted upon the request of the employee.

B. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, sick leave with or without pay, extended sick leave, or accumulated sick leave benefits.

C. Employees are encouraged to report pregnancy. Where the nature of the duties performed are hazardous or burdensome, the employee may be required to submit medical evidence as to fitness for the performance of duties of the position.

D. Regular full-time and probationary employees shall be placed on medical leave when the

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employee's physician states that medical disability would interfere with the performance of the duties of the position or continuing work would be hazardous. Should disagreement arise between the department head and the employee's physician as to the hazardous nature of the job or the ability of the employee to perform the job, a physician representing the City will resolve the conflict. The decision will be binding upon all the parties.

E. Following childbirth and upon release from medical treatment for the disability resulting from the pregnancy, the employee must submit a medical statement of fitness to perform the duties of the position to Human Resources. Upon expiration of an approved pregnancy disability leave of absence, the employee shall be reinstated in the position held at the time leave was granted.

Section 5. Family Leave. The City shall comply with State and Federal Family Medical Leave Laws.

Section 6. Unauthorized Leave of Absence. Unauthorized leave of absence shall be considered as days, or portions of days, not worked which are normal working days and will cause the deduction from the employee's pay of an amount equivalent to the time absent. Employees taking unauthorized leaves of absence may be subject to disciplinary action, to and including termination of employment.

ARTICLE XI - JURY DUTY
Section 1. Compensation for Jury Duty.

A. Regular or probationary employees required to report for jury duty shall be granted leave of absence for such purpose, upon presentation of a jury notice to the department head. Said employees shall receive full payment for the time served on jury duty, provided the employee remits any fees received for such jury service, excluding payment for mileage, to the Finance Department.

Compensation for mileage, subsistence or similar auxiliary allowances shall not be considered as a fee and shall be retained by the employee.

B. If the sum of the employee's jury duty responsibilities is less than a full workday, the employee shall contact their supervisor as to the feasibility of returning to work that day.

C. The employee shall not receive regular pay for work and pay for jury service which shall be in excess of 8 hours pay in any one day.

ARTICLE XII - TEMPORARY ASSIGNMENT AND APPOINTMENT
Section 1. In special circumstances, when in the best interest of the City, the City Manager or their designee may approve a temporary assignment of a probationary or regular employee to a higher-level classification.

Section 2. The City may work employees in a temporary assignment for up to 20 consecutive working days without additional compensation. The City may work employees in the classifications of Police Clerk I, Police Clerk II and Police Services Officer in a temporary assignment for up to 30 consecutive working days without additional compensation.

Section 3. Temporary assignments shall not be compensated at increased compensation where the temporary assignment is a replacement of an employee on a non-medical related leave.

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Section 4. An employee shall receive temporary assignment pay at the lowest step in the higher classification salary range that would represent a salary increase of at least five percent (5%) above the employee's salary, for work performed within the scope and responsibilities of the higher classification on the twenty-first (21st) consecutive day out of class, or on the thirty-first (31st) consecutive day out of class for employees in the classifications of Police Clerk I, Police Clerk II and Police Services Officer, and for each consecutive day thereafter an employee works out of class.

Section 5. During the 20 consecutive working day eligibility period before an employee is entitled to receive temporary assignment pay, or the 30 consecutive working day eligibility period for employees in the classifications of Police Clerk I, Police Clerk II and Police Services Officer, an employee may only be absent from work for a maximum of 16 cumulative hours. Any absence in excess of 16 hours shall break consecutiveness and cause an employee to be ineligible to receive temporary assignment pay. Should an employee be absent in excess of 16 hours, the 20 consecutive day eligibility period or 30 consecutive day eligibility period shall begin the day after the employee returns to work.

Section 6. A temporary assignment shall not exceed one year.

ARTICLE XIII - SICK LEAVE
Section 1. General Sick Leave Provisions.

A. Sick leave shall be used for the diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee, or as authorized by the Personnel Officer under the provisions of the Federal Family Medical Leave Act and/or the California Family Rights Act, or California Labor Code Section 233 (use of sick leave).

B. The employee may use up to 48 hours of sick leave per year for the following purposes:

1. For the diagnosis, care, or treatment of an existing health condition, or preventative care for, any of the employee’s family members: child of any age or dependency status; parent; parent-inlaw; spouse, registered domestic partner; grandparent; grandchild; sibling; or designated person.

2. For the employee who is a victim of domestic violence, sexual assault, or stalking: (a) to obtain or attempt to obtain a temporary restraining order or other court assistance to help ensure the health, safety, or welfare of the employee or his or her child; or (b) to obtain medical attention or psychological counseling; services from a shelter; program or crisis center; or participate in safety planning or other actions to increase safety.

Section 2. Eligibility. All employees covered by this Agreement shall be eligible to accrue sick leave.

Section 3. Accrual. Sick leave shall be accrued at the rate of 8 hours per calendar month for each calendar month that an employee has worked regularly scheduled hours and/or has been on authorized leave which provides for full pay, for at least 15 calendar days in that month.

Section 4. Accumulation and Payment Plan.

A. Accrued sick leave may be accumulated without limit, except that payment of accumulated sick leave shall be granted by the City Manager or their designee on an annual basis to all employees

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who have a minimum of 120 hours of accumulated sick leave on record on December 1st, and opt to receive payment at a rate of fifty percent (50%) of current salary for one-half (1/2) of their annual unused sick leave.

B. Payment of accumulated sick leave shall be granted by the City Manager or their designee on an annual basis to all employees covered by this Agreement who have a minimum of 240 hours of accumulated sick leave on record on December 1st, and opt to receive payment at a rate of one hundred percent (100%) of current salary for one-half (1/2) of their annual unused sick leave.

C. Employees wishing to opt for payments stated in Section 4. (A) and (B) above, must notify Human Resources in writing by December 15 for payment in the subsequent December’s special payroll. For example, if an employee submits a payout request for the maximum of 48 hours prior to December 15, 2024, payment will be issued in December 2025 (if eligible). The maximum number of hours eligible for payout in December 2025 will be based on the sick leave hours used in the 2025 payroll year and may be less than the maximum requested. The sick leave hours for which the employee receives payment shall be deducted from their sick leave record with the remaining one-half (1/2) of the annual accumulated sick leave being continued as a credit to the employee's sick leave account.

D. In accordance with the annual conversion policy set forth in Section 4. (A), (B) and (C) above, employees shall have the option of depositing their sick leave payment in a City deferred compensation program instead of receiving payment in cash. All deposits made into the deferred compensation program shall be made in accordance with any and all regulations governing the deferred compensation program.

E. Upon death, retirement, separation or termination of an employee covered by this Agreement, with a minimum of 60 days or 480 hours of sick leave accumulation, said employee is entitled to receive fifty percent (50%) compensation for that accumulated sick leave.

F. Upon death, retirement, separation of termination of an employee covered by this Agreement, with a minimum of five years of service and with between 240 hours and 480 hours of sick leave accumulation, said employee is entitled to receive payment for the difference between that amount of sick leave and 240 hours at fifty percent (50%) compensation.

G. In accordance with the payment plan set forth in Section 4. (E) and (F) above, upon separation, termination or retirement of an employee covered by this Agreement, said employee shall have the option of depositing their sick leave payment in a City deferred compensation program, instead of receiving payment in cash. All deposits made into the deferred compensation program shall be made in accordance with any and all regulations governing the deferred compensation program.

Section 5. Use.

A. Sick leave may be requested and used as approved by the department head or the City Manager. Payment for approved sick leave shall be authorized until the employee's accumulated total of sick leave hours has been exhausted and at such time the employee shall receive no further payment for sick leave. An employee shall have their accumulated sick leave balance reduced by an amount equal to the number of hours of sick leave for which they receive payment.

B. Sick leave shall not be granted for disability arising from any sickness or injury purposely

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self-inflicted or caused by an employee's own willful misconduct.

Section 6. Sick Leave During Vacation. An employee who becomes ill while on vacation may have such period of illness charged to their accumulated sick leave provided that: immediately upon return to duty, the employee submits to their department head a written request for sick leave and a written statement signed by their physician describing the nature and dates of illness; and the department head recommends and the City Manager approves granting of such sick leave. The employee may request an extension of vacation due to illness, subject to the approval of the department head and City Manager.

Section 7. Extended Sick Leave.

A. In the event an employee's continuing illness results in depletion of sick leave accumulation, the employee may request, in writing, to their department head and City Manager, a leave of absence without pay for the purpose of recovering from an illness, provided:

1. The employee has used all of their accumulated sick leave.

2. The employee presents to their department head for referral to and consideration by the City Manager, a written explanation of the employee's illness and an estimate of the time needed for recovery signed by the employee's physician.

3. Prior to resuming their duties, the employee may be required to take a medical examination at the City’s expense and provide a medical release to return to work from the employee's physician as prescribed by the City Manager. The employment record and the results of such examination shall be considered by the City Manager in determining the employee's fitness to return to work.

4. The maximum period of such leave shall be three calendar months. If the employee desires an extension, they shall follow, prior to the termination of their initial leave, the procedure described in subparagraph (2) above.

Section 8. Related Leave Chargeable to Sick Leave.

A. An employee may be granted time off with pay for the conduct of personal business up to a maximum of 27 hours per payroll year. Sick leave utilization studies conducted by the City shall not include personal leave.

B. Such granting of time off with pay shall be subject to the discretion of the department head and City Manager. When any such time is authorized, it shall be charged against the employee's accumulated sick leave account.

Section 9. On-the-job Injury. For all regular employees covered by this Agreement, when an employee is disabled by injury or illness arising out of and in the course of their duties for the City, they shall become entitled, regardless of their period of service with the City, to leave of absence for the period of such disability, but not exceeding one year, or until such earlier date as they are retired on permanent disability pension. Members are eligible for up to four months of salary continuation in lieu of temporary disability payments. During the first five (5) working days of such disability, the City shall pay one hundred percent (100%) of the salary. Thereafter, the employee shall receive eighty percent (80%) of salary. Any payments made pursuant to this Section shall not be charged to sick leave; provided, however, no sick leave or vacation benefits shall accrue during the period of such

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disability.

Section 10. Off-the-job Injury. An employee injured outside of their service with the City may apply for benefits under the disability insurance plan provided by the City.

ARTICLE XIV - FRINGE BENEFIT ADMINISTRATION
Section 1. Administration. The City reserves the right to select the insurance carrier or administer any fringe benefit programs that now exist or may exist in the future during the term of this Memorandum of Understanding.

Section 2. Selection and Funding. In the administration of the fringe benefit programs, the City shall have the right to select any insurance carrier or other method of providing coverage to fund the benefits included under the terms of this Memorandum of Understanding, provided that the benefits of the employees shall be no less than those in existence as of implementation of this Agreement.

Section 3. Changes. If, during the term of this Memorandum of Understanding, any change of insurance carrier or method of funding for any benefit provided hereunder occurs, the City shall notify the Association prior to any change of insurance carrier or method of funding the coverage.

ARTICLE XV - HEALTH, LIFE, DENTAL, DISABILITY AND VISION INSURANCE Section 1. Health Insurance Plan.

A. For the employees covered by the terms of this Agreement, the City and the employees shall contribute the sums listed below per month per employee toward health insurance:

MEDICAL RATE PROVISIONS AND SCHEDULE
Flexible Benefit Plan: The City shall maintain a benefit plan which will allow employees to utilize pre-tax dollars for health contributions (medical, dental, and life insurance contributions) and will provide additional contributions above the "PERS Health Coverage" for health insurance as noted below.

Pursuant to Government Code Section 22892, the City shall continue to pay the minimum monthly payment to PERS for all those employees and retirees choosing the PERS Health Plan, and shall pay any adjustment to this amount pursuant to PERS law. An employee and retiree may choose any plan offered by PERS that said employee or retiree is eligible to receive.

Employees eligible for this plan may choose, depending on their family status (single, one dependent or more), any medical plan offered by PERS (as eligible) and the following monthly City maximum contribution and employee minimum contribution benefit shall apply:

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Employee + Family $1400 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2025 through December 31, 2025:
*City *Employee
Status Maximum Minimum
Employee Only $1575 $ 0
Employee + 1 $1575 $ 5
Employee + Family $1575 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2026 through December 31, 2026:
*City *Employee
Status Maximum Minimum
Employee Only $1650 $ 0
Employee + 1 $1650 $ 5
Employee + Family $1650 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2027 through June 30, 2027:
*City *Employee
Status Maximum Minimum
Employee Only $1700 $ 0
Employee + 1 $1700 $ 5
Employee + Family $1700 $10

* The City will only pay up to the maximum contribution (City Maximum) or the premium of the health plan selected by the employee, whichever is lower. The employee must pay either the cost of the premium not covered by the City Maximum or the minimum contribution (Employee Minimum) as stated above, whichever is higher.

PERS Health Plan Deletion: An employee cannot be enrolled in the PERS health plan if a spouse is enrolled in the same agency or enrolled in an agency with PERS health, unless the employee (or the spouse) is enrolled without being covered as a family member. Additionally, an employee may choose to not be enrolled in the PERS health plan. If an employee chooses to delete the health plan coverage, the City, after determining that group health coverage is provided to the employee (by their spouse or other coverage), shall pay a cash allowance of $300 per month. [The same concept is applied to Dental at $5 per month]. The cash allowance will be prorated when an employee is on any leave of absence without pay. The proration will be waived during an approved FMLA leave (up to 12 weeks in a 12-month period). To be eligible for this "deletion" payment, the employee must provide proof, as determined by the Personnel Officer, that comparable group health coverage is in full force and effect. In the event the employee loses eligibility (with documentation) then the employee may re-enroll in the plan pursuant to the PERS health plan rules.

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B. Retiree Health Savings Plan. Beginning July 2024, the City will contribute $125 per month for each employee participating in the Retiree Health Savings Plan.

Section 2. Dental Insurance Plan.

A. The City shall pay 100% of the employee's premium to a dental insurance plan.

B. Payment for dependent coverage in the dental insurance plan shall be the responsibility of the employee.

C. The City will pick up the cost of employee’s share of rate increases that occur within the Dental Plan for the duration of the current MOU contract, through 6/30/27.

Section 3. Vision Plan. The City shall pay 100% of the employee's and dependent's premium to a vision insurance plan.

A. The City will pick up the cost of rate increases that occur within the Vision Plan for the duration of the current MOU contract, through 6/30/27.

Section 4. Life Insurance Plan. The City shall pay 100% of the premium for a term life insurance policy for each eligible employee which shall be based upon a formula of one times the employee's annual salary rounded up to the nearest thousand dollars up to a maximum City paid coverage of $50,000 (i.e. an employee who earns $40,100 would receive $41,000).

A. The City will pick up the cost of rate increases that occur within the Life Insurance Plan for the duration of the current MOU contract, through 6/30/27.

Section 5. Disability Insurance Plan. The City shall provide a long-term disability insurance plan for all employees covered by this agreement. The City shall pay 100% of the premium for the employee's short-term and long-term disability insurance plan. Modifications to the plan shall be made only after the City has met and consulted with the Association.

ARTICLE XVI - RETIREMENT
Section 1. The City shall continue to make contributions for regular “Classic” employees (i.e. those who do not meet the definition of “New Member” under the California Public Employees’ Pension Reform Act (PEPRA)) to the PERS plan known as two percent (2%) at fifty-five (55).

Publications relating to employee benefits and rights shall be posted in the Employees' lounges when received by the City.

Section 2. The City shall pay the Employer Paid Member Contribution (EPMC) to their retirement plan subject to Section 3, and place it in the employees' individual accounts.

Section 3. Employees hired prior to June 30, 2010 shall contribute 3% of the EPMC and the City will pay the remaining 4%.

Section 4. “Classic” employees hired after June 30, 2010 shall contribute 6% of the EPMC and the City will pay the remaining 1%.

The EPMC is not reported to CalPERS as special compensation.

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Section 5. The City's PERS contract shall provide the Survivor's Continuance Benefit to employees.

Section 6. The City's PERS contract shall provide for the 1959 Survivor's Benefit (Level 3).

The City shall make the employees' contribution in the amount of $2.00 per month.

Section 7. The City's PERS contract shall provide for the "One Year Highest Compensation" benefit for eligible employees. The City shall pay for the entire cost of this benefit for eligible employees.

Section 8. Employees hired after January 1, 2013 who meet the definition of New Members under PEPRA, are subject to all laws, statutes, rules and regulations of PEPRA. New members are generally, but not exclusively, those employees hired on or after January 1, 2013 who are not already CalPERS members, or those employees who were CalPERS members as a result of employment for another CalPERS agency, but then had a 6-month break in serve before starting to work for the City.

Section 9. In the event the City and its employees are required to participate in the Federal Social Security program, the employee contribution designated by law would be the responsibility of the employee, and the City shall not be obligated to pay or “pick up” any portion thereof.

ARTICLE XVII – ONE-TIME RETIREMENT INCENTIVE
A. A one-time retirement incentive will be offered to employees with 10 or more years of service with the City. To qualify, the employee must be age 50 or older as of July 1, 2024 and have submitted their notice of retirement between the date of ratification of the MOU and August 31, 2024 with an effective retirement date no later than December 31, 2024. The employee will have the option to have the payment deposited into their RHS account or their 457 plan (if eligible).

B. The amount of the one-time incentive is based on years of continuous, full-time service with the City as follows:
• 25 or more years - $25,000
• 20-24 years - $20,000
• 15-19 years - $15,000
• 10-14 years - $10,000

ARTICLE XVIII - EMPLOYEE TRAINING AND EDUCATION PROGRAMS

Section 1. Tuition Reimbursement. Employees who meet the requirements of the plan and who secure at least a passing grade ("C") shall receive up to $1,500 per fiscal year (July 1 to June 30) to attend accredited colleges taking courses pursuant to the employees' training and education programs. Reimbursement shall include the cost of tuition, fees and books, and all mandatory supplies. (Mandatory supplies shall include only such items necessary to complete compulsory assignments/projects required by instructors.)

ARTICLE XIX - SAFETY AND HEALTH
Section 1. The City and the employees of the City agree to comply with all applicable State and Federal laws which relate to health and safety.

Section 2. All persons who drive City vehicles shall be subject to the DMV Employer Pull

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Notice Program.

ARTICLE XX - LAYOFF PROCEDURES
Section 1. Policy.

A. Whenever there shall be need for layoff, employees within the class(es) of position(s) involved shall be terminated in the following order: emergency, provisional, temporary, probationary, regular. The order of layoff of regular employees shall be based upon recommendation of the department head. The department head shall take into consideration such things as tenure and job performance. Regular employees, subsequently laid off, shall be given a minimum of one month's notice, and written notice of the reasons for such action. The City will discuss with the Association the impact of the layoff and alternatives available. Regular employees in good standing (those deemed to have produced satisfactory service) shall be placed on appropriate employment lists and will have precedence for employment over persons whose names appear on employment lists for the same class of position.

B. An employee may be terminated by the department head when deemed necessary or convenient as a result of substantial changes in duties or organization, abolition of position, shortages of work funds, or completion of work for which employment was made. Such termination shall not be subject to appeal.

ARTICLE XXI - REINSTATEMENT
Section 1. Policy.

A. Regular employees who have been laid off shall be entitled to reinstatement to positions in the same class where such positions are to be refilled during the period of their eligibility on the layoff employment list. Any employees so reinstated shall retain all benefits accrued in prior service with the City. During such layoff, no benefits shall accrue and the anniversary date shall be adjusted, if such layoff time exceeds 30 consecutive days.

B. Any regular employee who has resigned from the City's service in good standing may, upon written request and approval of the department head and City Manager, be considered for reinstatement to a position in the same or similar class in the classified service within two years of such termination. Such reinstatement shall be made without benefit of additional examination and may take precedence over employment lists, but in no way shall it be mandatory for the department head to reappoint a former employee should they desire not to do so. Appointment shall otherwise be made in the manner as for original employment.

C. Upon reinstatement, any employee so appointed shall be considered a new appointee and shall have no vested interest in or be entitled to any benefits accrued during any previous employment with the City.

ARTICLE XXII - TRANSFER, PROMOTION AND DEMOTION
Section 1. Transfer.

A. An employee may be transferred at any time from one position to another position in the same or comparable class having the same salary range and reasonably similar qualifications.

Transfer involving a change from one department to another will require consent of both department

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heads unless the City Manager orders the transfer. Transfers shall not be used to effectuate a promotion, demotion, advancement or reduction, each of which may be accomplished only as provided in this Agreement. No person may be transferred to a position for which they do not possess the minimum qualifications. Transfers shall be accomplished, when practicable, with consideration of the City's Affirmative Action Plan. The City Manager may require a transferring employee to serve a new probationary period.

B. For purposes of this Agreement, a transfer shall not include the reassignment of personnel within the internal operation of the department as may be made from time to time by the department head.

Section 2. Promotion.

A. Insofar as practicable and consistent with the best interests of the service, all vacancies in the competitive service shall be filled by promotion from within the competitive service, after a promotional examination has been given and a promotional list established. To be eligible to compete in a promotional examination, an employee must have City experience in a lower classification in the same occupational field performing work that is sufficiently preparatory for the work of the promotional classification. The City Manager shall determine the appropriate positions from which employees may be drawn to compete in a promotional examination.

B. If, in the opinion of the department head, a vacancy in the department could be filled better by an open, competitive examination, then the department head may instruct the Personnel Officer to call for applications for the vacancy and arrange for an open, competitive examination and for the preparation and certification of an employment list. Regular employees who meet the requirements of the position will be considered eligible to compete in the open, competitive examination.

C. Promotion shall be accomplished insofar as practicable and consistent with the best interests of the service, with consideration for the City's Affirmative Action Plan.

Section 3. Demotion.

A. The department head, with approval of the City Manager, may demote an employee for any of the following reasons or conditions:

1. An employee whose ability to perform their required duties falls below acceptable standards.

2. For disciplinary reasons set forth in Chapter 11.03 of the Personnel Rules and Regulations of the City of Cypress.

3. When the need for a position which an employee fills no longer exists.

4. When an employee requests such demotion and has the consent of the prospective supervising official.

5. For any other reasonable grounds as approved by the City Manager.

B. No employee shall be demoted to a classification for which they do not possess the minimum qualifications. Written notice shall be given an employee at least three working days before the effective date of the demotion and complete information regarding such change shall be reported to the Personnel Officer.

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ARTICLE XXIII - NO STRIKE - NO LOCKOUT
Section 1. Prohibited Conduct.

A. The Association, its officers, agents, representatives and/or members agree that during the term of this Agreement, they will not cause or condone any strike, walkout, slowdown, sickout or any other job action by withholding or refusing to perform services.

B. The City agrees that it shall not lock out its employees during the term of this Agreement.

The term "lockout" is hereby defined so as not to include the discharge, suspension, termination, layoff, failure to recall, or failure to return to work of employees of the City in the exercise of its rights as set forth in any of the provisions of this Agreement or applicable ordinance or law.

C. Any employee who participates in any conduct prohibited in Section A above may be subject to termination by the City.

D. In addition to any other lawful remedies or disciplinary actions available to the City, if the Association fails to perform all responsibilities listed below in Section 2, "Association Responsibility", in good faith, the City may suspend any and all of the rights, privileges, accorded to the Association under this Memorandum of Understanding, including, but not limited to, suspension of recognition of the Association, grievance procedures, right of access, check off, the use of the City's bulletin boards and facilities.

Section 2. Association Responsibility.

A. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section A, "Prohibited Conduct", the Association or its duly authorized representatives shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this Memorandum of Understanding and unlawful, and they should immediately cease engaging in conduct prohibited in Section A, "Prohibited Conduct", and return to work.

B. If the Association performs all of the responsibilities set forth in Section A herein, its officers, agents and representatives shall not be liable for damages for prohibited conduct performed by employees who are covered by this Agreement in violation of Section A "Prohibited Conduct".

ARTICLE XXIV - ENTIRE MEMORANDUM OF UNDERSTANDING
Section 1. It is the intent of the parties hereto that the provisions of this Memorandum of Understanding shall supersede all prior agreements and memoranda of agreement, or memoranda of understanding, or contrary salary and/or personnel resolutions or administrative codes, provisions of the City, oral and written, expressed or implied, between the parties, and shall govern the entire relationship, and shall be the sole source of any and all rights which may be asserted hereunder. This Memorandum of Understanding is not intended to conflict with state or federal law.

Section 2. Notwithstanding the provisions of Section 1 of Article XXV below, there exists within the City certain personnel rules and regulations. To the extent that this Agreement does not specifically contradict these personnel rules and regulations or departmental rules and regulations or City ordinances, they shall continue subject to being changed by the City in accordance with the exercise of City rights under this Agreement and applicable state law.

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ARTICLE XXV - WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT Section 1. Except where required by the terms of this Agreement, during the term of this Memorandum of Understanding, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours and terms and conditions of employment, whether or not covered by this Memorandum of Understanding or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this Memorandum of Understanding. Regardless of the waiver contained in this Article, the parties may; however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this Memorandum of Understanding.

Section 2. During the term of this Agreement (FY2024 – 2027), the CEA agrees to review any proposed changes to the City’s Personnel Rules and Regulations. In response to a request by the CEA, the City will provide a minimum of five working days to review or respond to any item that affects wages, hours, and other terms and conditions of employment. Any request(s) by the City to the CEA will be in writing (email, memo, letter, etc.) and forwarded directly to at least one designated member of the CEA Board.

ARTICLE XXVI - CITY RIGHTS
Section 1. The City reserves, retains and is vested with, solely and exclusively, all rights of management which have not been expressly abridged by specific provision of this Memorandum of Understanding or by Law to manage the City, as such rights existed prior to the execution of this Memorandum of Understanding. The sole and exclusive rights of management, as they are not abridged by this Agreement or by Law, shall include, but not be limited to, the following rights:

A. To manage the City generally and to determine the issues of policy.

B. To determine the existence or non-existence of facts which are the basis of the management decision.

C. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish service.

D. To determine the nature, manner, means, and technology and extent of services to be provided to the public.

E. Methods of financing.

F. Types of equipment or technology to be used.

G. To determine and/or change the facilities, methods, technology, means and size of the workforce by which the City operations are to be conducted.

H. To determine and change the number of locations, relocations and types of operations, processes, and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or sub-contract any work or operation.

I. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments.

J. To relieve employees from duties for lack of work or similar non-disciplinary reasons.

K. To establish and modify productivity and performance programs and standards.

L. To discharge, suspend, demote or otherwise discipline employees for proper cause in accordance with the provisions and procedures set forth in departmental disciplinary procedures.

M. To determine job classification and to reclassify employees.

N. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the Memorandum of Understanding.

O. To determine policies, procedures and the standards for selection, training and promotion

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of employees.

P. To establish employee performance standards including, but not limited to, quality and quantity standards; and to require compliance therewith.

Q. To maintain order and efficiency in its facilities and operations.

R. To establish and promulgate and/or modify rules and regulations to maintain order and safety in the City which are not in contravention with this Agreement.

S. To take any and all necessary action to carry out the mission of the City in emergencies.

Section 2. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of Law, whenever the contemplated exercise of management's rights shall impact on a significant number of employees of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding.

ARTICLE XXVII - EMERGENCY WAIVER PROVISION
Section 1. In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this Memorandum of Understanding or the Personnel Rules and Regulations of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is over, the Association shall have the right to meet and confer with the City regarding the impact on employees of the suspension of these provisions in the Memorandum of Understanding and any Personnel Rules and Regulations.

ARTICLE XXVIII - SEPARABILITY
Section 1. Should any provision of this Memorandum of Understanding be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this Memorandum of Understanding shall remain in full force and effect for the duration of this Memorandum of Understanding.

ARTICLE XXIX - TERM OF MEMORANDUM OF UNDERSTANDING
Section 1. The term of this Memorandum of Understanding shall commence at 12:00 A.M., July 1, 2024, and shall continue in full force and effect until 11:59 P.M., June 30, 2027.

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EXHIBIT “A”
Regular F/Time Classifications
A A1 B B1 C C1 D D1 E
Associate (Civil) Engineer $8,933 $9,158 $9,383 $9,615 $9,849 $10,096 $10,339 $10,599 $10,858

51.5365 52.8346 54.1327 55.4712 56.8212 58.2462 59.6481 61.1481 62.6423 Project Manager $8,933 $9,158 $9,383 $9,615 $9,849 $10,096 $10,339 $10,599 $10,858

51.5365 52.8346 54.1327 55.4712 56.8212 58.2462 59.6481 61.1481 62.6423 Associate Planner $7,410 $7,592 $7,776 $7,972 $8,167 $8,371 $8,573 $8,790 $9,003

42.7500 43.8000 44.8615 45.9923 47.1173 48.2942 49.4596 50.7115 51.9404 Accountant $7,271 $7,453 $7,634 $7,825 $8,017 $8,217 $8,418 $8,628 $8,838

41.9481 42.9981 44.0423 45.1442 46.2519 47.4058 48.5654 49.7769 50.9885 Computer Support Specialist $6,740 $6,908 $7,076 $7,254 $7,430 $7,616 $7,802 $7,997 $8,192

38.8846 39.8538 40.8231 41.8500 42.8654 43.9385 45.0115 46.1365 47.2615 Assistant Planner $6,438 $6,598 $6,759 $6,929 $7,099 $7,277 $7,454 $7,639 $7,826

37.1423 38.0654 38.9942 39.9750 40.9558 41.9827 43.0038 44.0712 45.1500 Code Enforcement Officer II $6,418 $6,579 $6,740 $6,908 $7,076 $7,254 $7,430 $7,616 $7,802

37.0269 37.9558 38.8846 39.8538 40.8231 41.8500 42.8654 43.9385 45.0115 Code Enforcement Officer I $5,824 $5,968 $6,114 $6,265 $6,421 $6,579 $6,740 $6,908 $7,076

33.6000 34.4308 35.2731 36.1442 37.0442 37.9558 38.8846 39.8538 40.8231 Engineering Aide $5,682 $5,824 $5,968 $6,114 $6,265 $6,421 $6,579 $6,740 $6,908

32.7808 33.6000 34.4308 35.2731 36.1442 37.0442 37.9558 38.8846 39.8538 Senior Account Clerk $5,424 $5,559 $5,692 $5,837 $5,980 $6,130 $6,279 $6,437 $6,592

31.2923 32.0712 32.8385 33.6750 34.5000 35.3654 36.2250 37.1365 38.0308 Community Outreach Officer $5,410 $5,545 $5,682 $5,824 $5,968 $6,114 $6,265 $6,421 $6,579

31.2115 31.9904 32.7808 33.6000 34.4308 35.2731 36.1442 37.0442 37.9558 Police Services Officer $5,410 $5,545 $5,682 $5,824 $5,968 $6,114 $6,265 $6,421 $6,579

31.2115 31.9904 32.7808 33.6000 34.4308 35.2731 36.1442 37.0442 37.9558 Cypress Employees' Association
Efffective 7/5/2024
SALARY RANGES (Per Month/Hour)

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Regular F/Time Classifications
A A1 B B1 C C1 D D1 E
Secretary to Department Head $5,367 $5,495 $5,631 $5,772 $5,913 $6,063 $6,210 $6,365 $6,517

30.9635 31.7019 32.4865 33.3000 34.1135 34.9788 35.8269 36.7212 37.5981 Recreation Coordinator $5,282 $5,414 $5,546 $5,684 $5,824 $5,966 $6,112 $6,264 $6,418

30.4731 31.2346 31.9962 32.7923 33.6000 34.4192 35.2615 36.1385 37.0269 Office Specialist/Police $4,747 $4,865 $4,985 $5,108 $5,233 $5,367 $5,495 $5,631 $5,772

27.3865 28.0673 28.7596 29.4692 30.1904 30.9635 31.7019 32.4865 33.3000 Account Clerk II $4,747 $4,865 $4,985 $5,108 $5,233 $5,367 $5,495 $5,631 $5,772

27.3865 28.0673 28.7596 29.4692 30.1904 30.9635 31.7019 32.4865 33.3000 Admin. Services Tech. II $4,747 $4,865 $4,985 $5,108 $5,233 $5,367 $5,495 $5,631 $5,772

27.3865 28.0673 28.7596 29.4692 30.1904 30.9635 31.7019 32.4865 33.3000 Police Clerk II $4,575 $4,688 $4,803 $4,922 $5,042 $5,167 $5,295 $5,424 $5,559

26.3942 27.0462 27.7096 28.3962 29.0885 29.8096 30.5481 31.2923 32.0712 Account Clerk I $4,305 $4,411 $4,518 $4,633 $4,747 $4,865 $4,985 $5,108 $5,233

24.8365 25.4481 26.0654 26.7288 27.3865 28.0673 28.7596 29.4692 30.1904 $4,305 $4,411 $4,518 $4,633 $4,747 $4,865 $4,985 $5,108 $5,233

24.8365 25.4481 26.0654 26.7288 27.3865 28.0673 28.7596 29.4692 30.1904 Admin. Services Tech. I $4,305 $4,411 $4,518 $4,633 $4,747 $4,865 $4,985 $5,108 $5,233

24.8365 25.4481 26.0654 26.7288 27.3865 28.0673 28.7596 29.4692 30.1904 Office Assistant II $4,099 $4,203 $4,305 $4,411 $4,518 $4,633 $4,747 $4,865 $4,985

23.6481 24.2481 24.8365 25.4481 26.0654 26.7288 27.3865 28.0673 28.7596 Police Clerk I $3,952 $4,051 $4,150 $4,251 $4,355 $4,466 $4,575 $4,688 $4,803

22.8000 23.3712 23.9423 24.5250 25.1250 25.7654 26.3942 27.0462 27.7096 Office Assistant I $3,719 $3,814 $3,906 $4,004 $4,099 $4,203 $4,305 $4,411 $4,518

21.4558 22.0038 22.5346 23.1000 23.6481 24.2481 24.8365 25.4481 26.0654 SALARY RANGES (Per Month/Hour)
Administrative Clerk/ Community
Development
Cypress Employees' Association
Efffective 7/5/2024
Effective July 4, 2025, based upon the previous 12-month period for the May CPI-U for Los AngelesLong Beach-Anaheim, a minimum 4% to a maximum 4.5% range adjustment.

Effective July 3, 2026, based upon the previous 12-month period for the May CPI-U for Los AngelesLong Beach-Anaheim, a minimum 4% to a maximum 4.5% range adjustment.

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MEMORANDUM OF UNDERSTANDING BETWEEN THE

CITY OF CYPRESS AND THE CYPRESS EMPLOYEES' ASSOCIATION

ARTICLE I - RECOGNITION

Section 1. Pursuant to the Provisions of the Employer-Employee Relations Resolution No. 970, as amended, the City of Cypress (hereinafter called the "City" and/or "Employer" interchangeably) has recognized the Cypress Employees' Association as the majority representative of the employees in the bargaining unit, which includes all general miscellaneous classifications.

Section 3. Recognizing the above-mentioned body, the City encourages open and good faith negotiations between the City and its employees through their Employees' Association Representatives.

Section 2. Americans with Disabilities Act (ADA) and California Fair Employment and Housing Act (FEHA). To comply with state and federal law, the language below shall apply:

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Section 3. Whenever the masculine gender is used in this Memorandum of Understanding, it shall be understood to include the feminine gender.

ARTICLE III - COMPENSATION PLAN
Section 1. Basic Compensation Plan.

B. The A step, is the minimum rate and is normally the hiring rate for the class. An employee may be assigned, upon appointment, to other than the A step upon the recommendation of the department head and the approval of the City Manager or their his designee when it is decided that such action is in the best interest of the City.

D. Subsequent merit adjustments are intended to encourage an employee to improve their his work and to recognize seniority and increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of one year of service at their current step. An employee can move either one or two steps for merit adjustments, based upon the recommendation of the department head and approval of the City Manager or their his designee.

E. All rates shown are in full payment for services rendered and covers full payment for the number of hours now being regularly performed in each class.

F. The comprehensive wage and salary plan, as outlined herein, is based on a 40-hour work week for all employees covered by this Agreement.

Section 2. Initial Compensation. All new employees appointed to a position in the competitive service shall be paid a salary or wage within the established range for the position's class. The initial employment shall generally be at the minimum rate for the class. However, the appointing power may, with approval of the City Manager or their his designee, when circumstances warrant it, appoint at other than the minimum step.

Section 3. Evaluation Date Shall be Established as Follows:

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C. Evaluation dates shall change upon promotion or reclassification. Evaluation dates shall not change following demotions or transfers.

Section 4. Advancement Within Salary Range.

A. In order to properly compensate an employee, advancement in salary shall be based on merit.

B. Advancements in salary shall not be automatic, but shall depend upon increased service value of the employee to the City.

C. The department head and/or the employee's immediate supervisor shall be responsible to evaluate employees fairly in an unbiased fashion for the determination of job performance.

Advancement shall be made only upon recommendation of the department head with approval of the City Manager or their his designee.

D. Employees beginning at A step must be reviewed for performance advancement prior to the completion of six months of service from the date of appointment. Thereafter, an employee must be reviewed at least once every twelve months from the effective date of their his last performance step increase, special performance advancement or promotion. Nothing contained herein shall restrict the department head from denying the increase after evaluation, nor shall it prevent them him from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated.

F. Supervisors/Managers evaluating employees (who are not at the top of their pay range) will use the following merit-based rating criteria to determine the amount of an increase an employee is eligible to receive:
 Rating of Outstanding – Eligible for two half steps, which represents a 5% increase  Rating of Satisfactory - Eligible for one half step, which represents a 2.5% increase  Rating of Needs Improvement or Unsatisfactory – Not eligible for an increase Section 5. Salary Increases Following Promotion. When an employee in the City is promoted to a position with a higher salary range, such employee shall automatically be entitled to the lowest step in the higher salary range that would represent a salary increase of approximately 5% over the base salary received immediately prior to the promotion (e.g. approx. 5% is 4.5% or higher).

Section 6. Salary Decreases Following Demotion. In the case of a demotion of an employee in the department to a class with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new class as recommended by the department head and approved by the City Manager or their his designee. The employee shall retain their his previous anniversary date.

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Section 9. Salary and Benefits on Suspension. During suspension from City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except they he shall not forfeit their his medical health plan, dental insurance plan, vision insurance plan, retirement plan, disability insurance or life insurance plans. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment to compensate for loss of income and benefits during the period of suspension.

Section 10. Salary Increases

Salary increases for all represented classes will be implemented at the beginning of the pay period as follows and as reflected in Exhibit “A” attached hereto:

Effective July 9, 2021, a three percent (3%) range adjustment.

Effective July 8, 2022, based upon the May CPI-U for Los Angeles-Long Beach-Anaheim, a minimum 2% to a maximum 2.5% range adjustment.

Effective July 7, 2023, based upon the May CPI-U for Los Angeles-Long Beach-Anaheim, a minimum 2% to a maximum 2.5% range adjustment.

Effective July 5, 2024, a five percent (5%) range adjustment.

Effective July 4, 2025, based on the 12-month May 2025 CPI-U for Los Angeles-Long BeachAnaheim, a minimum 4% to a maximum 4.5% range adjustment.

Effective July 3, 2026, based on the 12-month May 2026 CPI-U for Los Angeles-Long BeachAnaheim, a minimum 4% to a maximum 4.5% range adjustment.

Section 11. One-Time Payment
Members who have been employed with the City since March 16, 2020 and remain employed through June 30, 2021, will receive a one-time non-PERSable gross payment of $5,000.

Regular part-time employees (scheduled to work 30 hours or more per week) who have been employed with the City since March 16, 2020 and remain employed through June 30, 2021, will receive a one-time non-PERSable gross payment of $3,750.

Members who began employment after March 16, 2020, but remain employed through June 30, 2021 will receive a one-time non-PERSable gross payment of $1,000.

Where eligible and in accordance with the Department of Treasury’s final guidelines, these one-time payments will be deemed “premium pay” under the American Rescue Plan Act and are intended to recognize and compensate eligible workers on the frontline, working in the field during the COVID-19 pandemic. Any one-time payment determined ineligible for premium pay classification under the American Rescue Plan Act will be paid with other City or Park District resources. Payment will be included in a regular payroll within 40 days of ratification of this agreement.

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The parties agree and stipulate that these payments shall not be deemed to be salary or performance based compensation and shall not be considered special compensation or incentive pay and therefore, shall not be deemed in law to be reportable compensation to CalPERS. The gross distribution of each payment shall be subject to all mandated State/Federal withholdings and shall not be deemed an adjustment to any recipient’s base salary, salary range or salary step. Furthermore, the payment will at no time be considered or used in the calculation of overtime compensation.

Section 112. Payroll Schedule and Direct Deposit.

ARTICLE IV - HOURS OF WORK
Section 1. Standard Workw Week. The standard workweek shall be 40 hours. However, all employees of the department shall be subject to be called for service at any time to meet any and all emergencies or unusual conditions which, in the opinion of the department head or designee, may require such service from any of said employees.

Section 2. 5/8 Work Schedule. Employee works five 8-hour shifts in a 7-day FLSA workweek.

Section 3. 9/80 Work Schedule. Employee works eight 9-hour days and one 8-hour day in two 7-day FLSA workweeks.

Section 2. Compensation. Authorized overtime shall be compensated for at the rate of one and one-half (1-1/2) times the regular rate of pay or by allowing accruing compensatory time off at the rate of one and one-half (1-1/2) hours for each hour of overtime worked. All paid leaves will be

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counted as time worked, with the exception of sick leave.

Section 3. Use of Compensatory Time. Employees shall be permitted to accumulate a maximum of 120 hours of compensatory time. All accumulated compensatory time shall be paid by the City to the employee in the December special payroll of each year unless the employee requests that up to a maximum of 80 hours of accumulated compensatory time be carried over to the following payroll year. Requests to carry over hours must be made in writing to Human Resources by December 15 of the prior calendar year., For example, employees wishing to carry over hours from calendar year 20242 to 20253, must submit the request in writing to Human Resources by December 15, 20241. Should an employee desire to take compensatory time off, they he shall file a written request with the department head who shall grant time off unless it interferes with the normal operation of the department. The granting of compensatory time off shall be at the sole discretion of the department head or their his designee.

Section 4. Overtime Reporting. In order for an employee to earn compensation for overtime, they he must receive prior supervisor or department head approval. Overtime worked to meet an emergency situation does not require advance approval, but shall be certified by the department head before being credited to the employee's record.

Section 5. Authorization. It is the policy of the City to avoid the necessity for overtime work.

However, when overtime work is necessary and consistent with the efficient operation of the City, such overtime shall be authorized, but shall be kept at a minimum.

ARTICLE VI - SPECIAL PAY PROVISIONS
Section 1. Callback. Employees in the classification of Police Services Officer assigned to Property and Evidence shall be paid a minimum of two hours of overtime when called back for other than a normal shift or work day assignment and has already departed from the work premises. All other employees shall be paid for time worked. Employees called back as defined above shall be paid one and one-half (1-1/2) times the employee's regular rate of pay. Callback time shall commence from the time the employee reports to the work location.

Section 4. Bilingual Pay.

A. Subject to the conditions of this Section, employees assigned to the Police Department who, in

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the course of their assignment, may be required to speak or understand another approved language besides English or translate such language to English on a regular basis, will be compensated $100.00 per month.

B. An employee may apply for bilingual pay at any time and will be responsible for initiating a written request to Human Resources. All requests shall be subject to the Police Chief department head and Personnel Officer’s approval and only those assignments that are determined to reasonably utilize bilingual skills on a regular basis in a language beneficial to the department, shall be considered.

E. In the event an employee is not successful in passing such competency testing to qualify for bilingual pay, said employee may reapply for eligibility at least three months after the testing.

G. Any consideration for adding and/or eliminating languages to this provision shall be made by the Police Chief department head and Personnel Officer. Such considerations shall be made on department needs and neighboring cities’ ethnic population.

H. The City agrees to review data on the frequency of translation services provided by members outside of the Police Department and reconvene with the association representatives prior to the expiration of this agreement to determine if the need to expand bilingual pay to CEA members in other departments is necessary.

H. Bilingual pay will be suspended after 30 consecutive days on any leave of absence, either paid or unpaid, and will be effective beginning the 31st day, Bilingual pay will be reinstated on the first payroll back from leave of absence (worked 80 hours). If an employee returns from an extended leave of absence, only to go back on leave (within a one-year period of their return), bilingual pay will be suspended effective immediately (no new 30-day wait period).

EMPLOYEE POSITION EDUCATION INCENTIVE PAY
Pat Hough Administrative Services Tech II $30.00/month
Section 6. Shoe Allowance. City and Association acknowledge and agree the City will provide a shoe allowance for protective footwear to employees in the following classifications: Administrative Services Technician, Code Enforcement Officer, and Engineering Aide. The shoe allowance is in the amount of $100.00 per MOU contract year. Protective footwear, under this provision, worn by the above classifications shall provide protection against exposure to foot injuries from electrical hazards, hot, corrosive, poisonous substances, falling objects, crushing or penetrating actions. Safety shoes or

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boots worn as protective footwear shall meet the standards established by Cal-OSHA.

Section 7. Uniform Allowance.

A. Designated police department employees who are required to wear a uniform shall receive a biannual uniform allowance in accordance with the following:

Community Outreach Officer $375.00 $325.00
Police Clerk I $350.00 $300.00
Police Clerk II $350.00 $300.00
Police Services Officer $375.00 $325.00
B. The uniform allowance will be suspended after an employee is off work for 30 consecutive days on any leave of absence, either paid or unpaid, and will be effective beginning the 31st day.

For example, if a Police Services Officer is off work starting February 15 and returns to work on May 1, they are off for a total of 75 days. The Police Services Officer will not be eligible to receive uniform allowance for 45 days and the biannual payment of $375 will be prorated. In this instance, the employee is not eligible to receive 25% of their biannual allowance (45 days during the 180- day six-month period). Therefore, when the allowance is paid in June, the Police Services Officer would be paid $281.25 (75% of $375). The allowance will be reinstated on the first full payroll back from leave of absence (worked 80 hours). If an employee returns from an extended leave of absence, only to go back on leave (within a one-year period of their return), the allowance will be suspended effective immediately (no new 30-day wait period).

ARTICLE VII - HOLIDAYS

Section 1. Recognized Holidays.

Employees must use other forms of accrued leave to make up the difference between holiday hours earned and those required to be used when working an alternative work schedule.

D. When an employee who is required to work on a holiday becomes ill and is unable to report to work that day, the employee shall be paid at the straight time rate for the sick leave hours

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scheduled to work on said day, and the holiday hours will remain in their leave bank for use during the payroll year.

ED. When any holiday, recognized by the City, falls on a Sunday, the following Monday shall be considered the holiday. When any day, recognized by the City as a holiday, falls on a Saturday, the preceding Friday shall be considered the holiday.

FE. Religious holidays requested off shall be done so in writing to the department head. If approved, such time shall be charged against accumulated vacation, compensatory time, personal leave, holiday or floating holiday.

Section 2. Employees Required to Work on Holidays.

A. Any employee eligible for holiday pay, required to work on a day designated as a holiday under the provisions of the Personnel Rules, shall be paid at the straight time rate for the normal work hours on said day and, in addition, shall receive pay equal to and in lieu of time off for said holiday.

Hours worked in excess of the normal work hours on such holiday shall be considered as overtime hours and shall be compensated for under the appropriate overtime pay provisions. When a holiday falls on a normally assigned day off for an employee who is eligible to receive holiday pay, that employee shall receive additional pay equal to and in lieu of time off for said holiday. Said additional pay equal to and in lieu of time off for said holiday shall be 8 hours at the employee's straight time hourly rate of pay.

B. When an employee eligible for holiday pay, who is required to work on a day designated as a holiday under the provisions of the Personnel Rules, becomes ill and is unable to report for work on that day, the employee shall be paid at the straight time rate for the sick leave hours scheduled to work on said day, and in addition will receive pay equal to and in lieu of time off for said holiday.

Section 23. Holidays Falling During Approved Leaves of Absence Without Pay. Any employee on an approved leave of absence without pay, having the holiday fall during the period of such leave of absence without pay, shall be eligible for such holiday pay only in those instances where said employee has worked either the day before or the day immediately following said holiday.

ARTICLE VIII - PROBATIONARY PERIOD
Section 1. Regular Appointments Following Probationary Period.

A. The original appointment of every employee, other than those whose appointment is exempt, shall be tentative and subject to a probationary period of twelve (12) months of service.

B. The promotional appointment of every employee shall be tentative and subject to a probationary period of six months.

C. Human Resources shall notify the department head and the probationer concerned, two weeks prior to the termination of the probationary period.

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Manager or his designee.

Section 2. Objective of Probationary Period. The probationary period shall be regarded as a 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 his position, and for rejecting any probationary employee whose performance does not meet the required standards of work.

Section 3. Employee Performance Reports.

A. Each probationary employee shall have their his performance evaluated at the end of each three months of service or at a more frequent interval when deemed necessary by the appointing power. Regular employees shall have their performance evaluated annually or at more frequent intervals when deemed necessary by the appointing power. Such evaluations shall be reported in writing and in a form approved by the Personnel Officer.

Section 4. Rejection of a Probationary Employee.

B. An exception will be applied where the probationary employee's job termination or dismissal is based on charges of misconduct which stigmatizes their his reputation or seriously impairs their his opportunity to earn a living, or which might seriously damage their his standing and association in the community. Where there is such a deprival of a "liberty interest", the employee shall be given pre-disciplinary procedural due process as defined in the Personnel Rules. Prior to the disciplinary action becoming final, the employee must be notified of their his right to the appeal procedures as outlined in the Personnel Rules.

ARTICLE IX – REGULAR PART-TIME BENEFITS
Section 1. Regular part-time employees who are regularly scheduled to work 30 hours or more per week shall accrue leave time and receive health benefits at a rate of 75%.

Section 2. Vacation Accrual.

A. Each regular full-time and probationary employee shall accrue vacation leave by the following formula:

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Hours/Month Year of Employment Annual Amount (Hours)

1. 6.6670 1st year 80 hours.

2. 7.3334 2nd year 88 hours.

3. 8.0000 3rd year 96 hours.

4. 8.6667 4th year 104 hours.

5. 9.3334 5th year 112 hours.

6. 10.0000 6th year 120 hours.

7. 10.6667 7th year 128 hours.

8. 11.3334 8th year 136 hours.

9. 12.0000 9th year 144 hours.

10. 12.6667 10th year 152 hours.

11. 13.3334 11th year 160 hours, and each month
thereafter.

Section 3. Anniversary Date.

A. Employees hired on or between the first and fifteenth day of the month shall have the first day of that same month as their anniversary date.

B. Employees hired on or between the sixteenth and the last day of the month shall have the first day of the following month as their anniversary date.

Section 5. Use of Vacation.

A. The time at which an employee's vacation is to occur shall be determined by the department head with due regard for the wishes of the employee and particular regard for the needs of the service.

B. An employee who has completed five years or more of continuous service and who has taken 40 cumulative hours of vacation in the his current payroll anniversary year may elect to be paid for up to a maximum of 80 hours of accrued vacation in the following calendar year. Request for payment shall be made in writing to Human Resources by December 15 of the prior calendar year for the requested payment in the subsequent December’s special payroll. on the employee's anniversary date. For example, if an employee with an anniversary date of April 1 submits a payout request of 80 hours prior to December 15, 20241 and is deemed eligible to receive a payout, the employee will be paid for 80 hours in December 2025 (if accrued vacation at that time is equal to or exceeds 80 hours).April 2022.

Section 6. Vacation Payment at Termination.

A. Employees terminating employment shall be paid in a lump sum for all accrued vacation leave.

B. When termination is caused by the death of the employee, said payment for unused vacation shall be paid to the beneficiary designated by the employee. Such designation shall be in

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writing, signed by the employee and filed with Human Resources. In the event an employee has not designated a beneficiary, the payment shall be made to the estate of the employee.

Section 7. Vacation Earned During Leave of Absence. No vacation leave shall be earned during any leave of absence without pay for each 30-day period of such leave.

Section 8. Vacation - Miscellaneous. Employees shall not work for the City during their vacation and, thereby, receive double compensation from the City.

ARTICLE XI - LEAVES OF ABSENCE
Section 1. Authorized Leave of Absence Without Pay.

B. At the expiration of the approved leave, within a reasonable period of time, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted.

Failure on the part of the employee on leave to report promptly at such leave's expiration, within a reasonable time after notice to return to duty, shall be cause for discharge.

Employees on unpaid leave of absence do not accrue vacation or sick leave and are not eligible for any other paid leave.

Employees shall receive 8 hours of pay for each day lost from work of bereavement leave they are entitled to as set forth above.

Section 3. Military Leave of Absence.

A. Military leave shall be granted in accordance with the provisions of state and federal law.

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Section 4. Pregnancy Disability Leave of Absence.

A. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave for a maximum minimum period of four months provided that a lesser period may be granted upon the request of the employee.

D. Regular full-time and probationary employees shall be placed on medical leave when the employee's physician states that medical disability would interfere with the performance of the duties of the position or continuing work would be hazardous. Should disagreement arise between the department head and the employee's physician as to the hazardous nature of the job or the ability of the employee to perform the job, a physician representing the City will resolve the conflict. The decision will be binding upon all the parties.

Section 5. Family Leave. The City shall comply with State and Federal Family Medical Leave Laws.

ARTICLE XII - JURY DUTY
Section 1. Compensation for Jury Duty.

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Compensation for mileage, subsistence or similar auxiliary allowances shall not be considered as a fee and shall be retained by the employee.

B. If the sum of the employee's jury duty responsibilities is less than a full workday, the employee shall contact their his supervisor as to the feasibility of returning to work that day.

C. The employee shall not receive regular pay for work and pay for jury service which shall be in excess of 8 hours pay in any one day.

ARTICLE XIII - TEMPORARY ASSIGNMENT AND APPOINTMENT
Section 1. In special circumstances, when in the best interest of the City, the City Manager or their his designee may approve a temporary assignment of a probationary or regular employee to a higher- level classification.

Section 3. Temporary assignments shall not be compensated at increased compensation where the temporary assignment is a replacement of an employee on a non-medical related leave.

Section 6. A temporary assignment shall not exceed one year.

ARTICLE XIIIV - SICK LEAVE
Section 1. General Sick Leave Provisions.

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B. The employee may use up to 48 hours of sick leave per year for the following purposes:

Section 2. Eligibility. All employees covered by this Agreement shall be eligible to accrue sick leave.

Section 4. Accumulation and Payment Plan.

A. Accrued sick leave may be accumulated without limit, except that payment of accumulated sick leave shall be granted by the City Manager or their his designee on an annual basis to all employees who have a minimum of 120 hours of accumulated sick leave on record on December 1st, and opt to receive payment, during the subsequent December on a date determined by Human Resources, at a rate of fifty percent (50%) of current salary for one-half (1/2) of their annual unused sick leave.

B. Payment of accumulated sick leave shall be granted by the City Manager or their his designee on an annual basis to all employees covered by this Agreement who have a minimum of 240 hours of accumulated sick leave on record on December 1st, and opt to receive payment, during the subsequent December on a date determined by Human Resources, at a rate of one hundred percent (100%) of current salary for one-half (1/2) of their annual unused sick leave.

C. Employees wishing to opt for payments stated in Section 4. (A) and (B) above, must notify Human Resources in writing by December 15 for payment in the subsequent December’s special payroll. For example, if an employee submits a payout request for the maximum of 48 hours prior to December 15, 20241, payment will be issued in December 20252 (if eligible). The maximum number of hours eligible for payout in December 20252 will be based on the sick leave hours used in the 20252 payroll year and may be less than the maximum requested. The sick leave hours for which the employee receives payment shall be deducted from their his sick leave record with the remaining onehalf (1/2) of the annual accumulated sick leave being continued as a credit to the employee's sick leave account.

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H. The employee listed below is entitled, upon a service retirement which is not surrounded by discipline, to one-hundred percent (100%) of accumulated sick leave hours paid at the employee’s rate of pay on his last day of actual work, regardless of effective date of service retirement. Payment shall be made when the City receives “Notice of Placement on Retirement Roll” from CalPERS confirming a service retirement. The employee below opted to “grandfather” this benefit from the Cypress Police Officers’ Association Memorandum of Understanding. No other employees shall be eligible to receive this benefit.

EMPLOYEE POSITION
Richard Morrow Police Services Officer
Section 5. Use.

A. Sick leave may be requested and used as approved by the department head or the City Manager. Payment for approved sick leave shall be authorized until the employee's accumulated total of sick leave hours has been exhausted and at such time the employee shall receive no further payment for sick leave. An employee shall have their his accumulated sick leave balance reduced by an amount equal to the number of hours of sick leave for which they he receives payment.

B. Sick leave shall not be granted for disability arising from any sickness or injury purposely self-inflicted or caused by an employee's own willful misconduct.

Section 6. Sick Leave During Vacation. An employee who becomes ill while on vacation may have such period of illness charged to their his accumulated sick leave provided that: immediately upon return to duty, the employee submits to their his department head a written request for sick leave and a written statement signed by their his physician describing the nature and dates of illness; and the department head recommends and the City Manager approves granting of such sick leave.

The employee may request an extension of vacation due to illness, subject to the approval of the department head and City Manager.

Section 7. Extended Sick Leave.

A. In the event an employee's continuing illness results in depletion of sick leave accumulation, the employee may request, in writing, to their his department head and City Manager, a

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leave of absence without pay for the purpose of recovering from an illness, provided:

1. The employee has used all of their his accumulated sick leave.

2. The employee presents to their his department head for referral to and consideration by the City Manager, a written explanation of the employee's illness and an estimate of the time needed for recovery signed by the employee's physician.

3. Prior to resuming their his duties, the employee may be required to take a medical examination at the City’s expense and provide a medical release to return to work from the employee's physician as prescribed by the City Manager. The employment record and the results of such examination shall be considered by the City Manager in determining the employee's fitness to return to work.

4. The maximum period of such leave shall be three calendar months. If the employee desires an extension, they he shall follow, prior to the termination of their his initial leave, the procedure described in subparagraph (2) above.

Section 8. Related Leave Chargeable to Sick Leave.

Section 9. On-the-job Injury. For all regular employees covered by this Agreement, when an employee is disabled by injury or illness arising out of and in the course of their his duties for the City, they he shall become entitled, regardless of their his period of service with the City, to leave of absence for the period of such disability, but not exceeding one year, or until such earlier date as they are he is retired on permanent disability pension. Members are eligible for up to four months of salary continuation in lieu of temporary disability payments. During the first five (5) working days of such disability, the City shall pay one hundred percent (100%) of the salary. Thereafter, the employee shall receive eighty percent (80%) of salary. Any payments made pursuant to this Section shall not be charged to sick leave; provided, however, no sick leave or vacation benefits shall accrue during the period of such disability.

Section 10. Off-the-job Injury. An employee injured outside of their his service with the City may apply for benefits under the disability insurance plan provided by the City.

Section 2. Selection and Funding. In the administration of the fringe benefit programs, the City shall have the right to select any insurance carrier or other method of providing coverage to fund

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the benefits included under the terms of this Memorandum of Understanding, provided that the benefits of the employees shall be no less than those in existence as of implementation of this Agreement.

ARTICLE XVI - HEALTH, LIFE, DENTAL, DISABILITY AND VISION INSURANCE Section 1. Health Insurance Plan.

A. For the employees covered by the terms of this Agreement, the City and the employees shall contribute the sums listed below per month per employee toward health insurance:

The following monthly City maximum contribution and employee minimum contribution benefit shall apply through December 31, 2024:
*City *Employee
Status Maximum Minimum
Employee Only $1400 $ 0
Employee + 1 $1400 $ 5
Employee + Family $1400 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2025 through December 31, 2025:
*City *Employee
Status Maximum Minimum
Employee Only $1575 $ 0
Employee + 1 $1575 $ 5
Employee + Family $1575 $10
The following monthly City maximum contribution and employee minimum contribution benefit

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shall apply for the period January 1, 2026 through December 31, 2026:
*City *Employee
Status Maximum Minimum
Employee Only $1650 $ 0
Employee + 1 $1650 $ 5
Employee + Family $1650 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2027 through June 30, 2027:
*City *Employee
Status Maximum Minimum
Employee Only $1700 $ 0
Employee + 1 $1700 $ 5
Employee + Family $1700 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period July 1, 2021 through December 31, 2021:
*City *Employee
Status Maximum Minimum
Employee Only $1175 $ 0
Employee + 1 $1175 $ 5
Employee + Family $1175 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2022 through December 31, 2022:
*City *Employee
Status Maximum Minimum
Employee Only $1250 $ 0
Employee + 1 $1250 $ 5
Employee + Family $1250 $10

The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2023 through December 31, 2023:
*City *Employee

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Status Maximum Minimum
Employee Only $1325 $ 0
Employee + 1 $1325 $ 5
Employee + Family $1325 $10
The following monthly City maximum contribution and employee minimum contribution benefit shall apply for the period January 1, 2024 through June 30, 2024:
*City *Employee
Status Maximum Minimum
Employee Only $1400 $ 0
Employee + 1 $1400 $ 5
Employee + Family $1400 $10
* The City will only pay up to the maximum contribution (City Maximum) or the premium of the health plan selected by the employee, whichever is lower. The employee must pay either the cost of the premium not covered by the City Maximum or the minimum contribution (Employee Minimum) as stated above, whichever is higher.

PERS Health Plan Deletion: An employee cannot be enrolled in the PERS health plan if a spouse is enrolled in the same agency or enrolled in an agency with PERS health, unless the employee (or the spouse) is enrolled without being covered as a family member. Additionally, an employee may choose to not be enrolled in the PERS health plan. If an employee chooses to delete the health plan coverage, the City, after determining that group health coverage is provided to the employee (by their spouse or other coverage), shall pay a cash allowance of $300 per month. [The same concept is applied to Dental at $5 per month]. The cash allowance will be prorated when an employee is on any leave of absence without pay. The proration will be waived during an approved FMLA leave (up to 12 weeks in a 12-month period). If the employee wants to have all or a portion of the deferred compensation payment to be credited towards the dependent coverage cost, then the remaining balance, if any, shall be credited to the employee's deferred compensation account. To be eligible for this "deletion" payment, the employee must provide proof, as determined by the Personnel Officer, that comparable group health coverage is in full force and effect. In the event the employee loses eligibility (with documentation) then the employee may re-enroll in the plan pursuant to the PERS health plan rules.

B. Retiree Health Savings Plan. Beginning July 2024,
a. Tthe City will contribute $125 $75.00 per month for each employee participating in the Retiree Health Savings Plan.
b. Employees hired after 7/1/07 are required to participate in the Retiree Health Savings Plan.

C. Supplemental Health Care Benefit - Eligible Retirees:
a. Benefit applies only to the following employees who made the election to be grandfathered in to the Supplemental Health Care Benefit: Richard Morrow, Doreen Shackelford. b. Employees who retire from the City under a PERS service retirement, with at least 10 years of continuous service may be eligible for supplemental health care benefits effective on the date of

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retirement. The employee's service retirement date must immediately follow the employment separation date for the employee to be eligible to receive the supplemental health care benefit. c. The retiree may receive a payment for this benefit pursuant to the following schedule:

Yrs. of Continuous Service City Payment
10 $100/month
15 $150/month
20 $300/month
d. The monthly payment amount set forth in B above, can be used by the retiree to either continue his health care benefits as may be available through the PERS Health Plan or use the monthly payment amount to purchase alternative health care benefits. This monthly payment shall be sent to the eligible retiree by check, direct deposit, wire transfer or ACH. e. If the retiree chooses to participate in a plan other than the PERS Health plan, the retiree must provide the City with verification, as determined by the Personnel Officer, that the City payment is being used to secure alternative health care benefits. f. The above City payment will terminate on the date that the retiree reaches age 65 or on the date that the retiree becomes eligible for Medicare, whichever comes first. g. This provision does not relate to the minimum payment to PERS for employees and retirees selecting the PERS Health Plan. Therefore, if a retiree eligible for the above supplemental health care benefit selects the PERS Health Plan coverage, then the retiree would be eligible for the above City payment and the minimum payment to PERS by the City.

Section 2. Dental Insurance Plan.

A. The City shall pay 100% of the employee's premium to a dental insurance plan.

B. Payment for dependent coverage in the dental insurance plan shall be the responsibility of the employee.

C. The City will pick up the cost of employee’s share of rate increases that occur within the Dental Plan for the duration of the current MOU contract, through 6/30/274.

Section 3. Vision Plan. The City shall pay 100% of the employee's and dependent's premium to a vision insurance plan.

A. The City will pick up the cost of rate increases that occur within the Vision Plan for the duration of the current MOU contract, through 6/30/274.

A. The City will pick up the cost of rate increases that occur within the Life Insurance Plan for the duration of the current MOU contract, through 6/30/274.

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ARTICLE XVII - RETIREMENT
Section 1. The City shall continue to make contributions for regular “Classic” employees (i.e. those who do not meet the definition of “New Member” under the California Public Employees’ Pension Reform Act (PEPRA)) to the PERS plan known as two percent (2%) at fifty-five (55).