Daly City City Council
January 26, 2026

AVAILABILITY OF PUBLIC RECORDS:

All public record to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the City Clerk’s Office, City Hall located at 333 90 th Street, Daly City, CA during normal business hours, at the same time that the public records are distributed or made available to the legislative body.

CITY OF DALY CITY

Regular Meeting - CITY COUNCIL

AGENDA

Monday, January 26, 2026 - 7:00 PM

City Hall Council Chambers – 2nd Floor
City Hall 333 – 90th Street
Daly City, CA 94015

To watch the live telecast:
https://www.youtube.com/@DalyCityGov/streams, https://www.dalycity.org/agendas, or Comcast Ch. 27

PUBLIC PARTICIPATION
There are three ways to submit public comments: (1) submit written comments by meeting day, (2) submit written comments during the meeting, and (3) attend the meeting in person.

1. To submit written comments by meeting day, please email [email protected] and include “Public Comment” in the subject line. All written comments received by 4:00 pm on meeting day will be provided to the City Council prior to the meeting.

Please note: Any emailed comments received after 4:00 p.m. on the meeting date are not guaranteed to be received by the City Council prior to the meeting. Comments are not read aloud into the record.

2. During the meeting, you may visit www.dalycity.org/agendas to submit comments using the Public Comment form to address the City Council on a specific item, or during the public comment period, and such comments are delivered to the City Council and City Staff during the meeting, and may be read into the record at the time they are received.

3. To speak at the meeting in person, please complete a Speaker Card located at the entrance to the Council Chamber and submit it to a Staff Member as early in the meeting as possible.

Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting should call the office of the City Clerk at (650) 991-8078 as soon as possible.

PLEDGE TO THE FLAG:

CALL TO ORDER
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah - my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.

Agenda – City Council
Monday, January 26, 2026

ROLL CALL:

APPROVAL OF MINUTES:

1. Special Meeting of January 6, 2026

APPROVAL OF AGENDA:

2. Regular Meeting of January 26, 2026

STAFF COMMUNICATION:

ORAL COMMENT:

NOTE: Speakers are limited to two minutes, unless modified by the Mayor.

The Council cannot take action on any matter raised under this item.

CONSENT AGENDA
All items listed on the Consent Agenda are considered to be routine and may be approved by one roll call vote of the City Council. There shall be no separate discussion of the matters on the Consent Agenda unless requested by a member of the City Council. If discussion is required, that item will be removed from the Consent Agenda and will be considered separately at the end of the Agenda.

Resolutions:

3. Adopt Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Clerical Technical Unit

4. Adopt Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Police Assistants

5. Adopt Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Safety Inspectors

6. Adoption of Memorandum of Understanding and Salary Schedule between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Operating Engineers Unit

7. Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Plant Maintenance Unit

8. Authorize the City Manager to Approve a Purchase Agreement for a TYMCO Model 600 Street Sweeper

9. Set Time and Place for Public Hearing Under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) (Set Time: 2/9/2026)

Agenda – City Council
Monday, January 26, 2026

10. Authorization to Perform Interior Concrete Restoration and Coating at Reservoir 6B

11. Accept Annual Delegation of Investment Authority to the City Treasurer

12. Accept 2026 Statement of Investment Policy

13. Set Time and Place to Consider Adoption of an Entertainment Zone Ordinance Pursuant to SB 969 (Set Time: 2/9/2026)

14. Commend Director of Economic & Community Development Tatum Mothershead on the Occasion of Her Retirement

Check Registers:

15. Check Registers for the Month of December 2025

END OF CONSENT AGENDA

ORDINANCES:

16. Second Reading, Ordinance No. 1485, Amending Chapter 2.16 of the Municipal Code Re: Arts and Culture Commission

STAFF: Kelly Schott

RECOMMENDATION: Adopt Ordinance by Roll Call Vote

17. Second Reading, Ordinance No. 1486, Amending Chapter 2.20 of the Municipal Code Re:

Recreation Commission

STAFF: Kelly Schott

RECOMMENDATION: Adopt Ordinance by Roll Call Vote

APPOINTMENTS: Board/Commission Membership Committee Appointments

REPORTS:

18. Council Committee

19. City Council

20. Staff

ADJOURNMENT:

CITY OF DALY CITY
MINUTES – SPECIAL MEETING – CITY COUNCIL
JANUARY 6, 2026
--------------------------------
Note on Public Comments:

To provide public comments, members of the public have the option to- 1) attend in person, 2) email the City Clerk, or 3) submit comments through the public comment portal on the City’s website. Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting are instructed to call the office of the City Clerk at 991-8078 prior to the meeting.

Visit https://www.youtube.com/@DalyCityGov/streams to view the City Council meeting

CALL TO ORDER:

Mayor Sylvester called t he special meeting to order at 7:02 P.M. and read the City’s Land Acknowledgement:

The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah -my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.

ROLL CALL: Councilmembers Present
Glenn R. Sylvester, Mayor
Teresa G. Proaño, Vice Mayor
Dr. Roderick Daus-Magbual
Juslyn C. Manalo

Councilmembers Absent
Pamela DiGiovanni

Staff Present
Thomas J. Piccolotti, City Manager
Rose L. Zimmerman, City Attorney
K. Annette Hipona, City Clerk

PRESENTATIONS:

HIP Housing 2026 Calendar Contest Winners
(Brian Perkins, Board of Directors, HIP Housing)

APPROVAL OF MINUTES:

Regular Meeting of December 8, 2025 and Special Meeting of December 9, 2025

It was moved by Councilmember Daus-Magbual, seconded by Vice Mayor Proaño and carried to approve the minutes of December 8 and December 9, 2025.

APPROVAL OF AGENDA:

It was moved by Councilmember Manalo, seconded by Councilmember Daus-Magbual and carried to approve the agenda.

CITY OF DALY CITY
MINUTES – SPECIAL MEETING – CITY COUNCIL
JANUARY 6, 2026
2 CONSENT AGENDA:

It was moved by Councilmember Manalo, seconded by Councilmember Daus-Magbual, and carried to approve the consent agenda.

Resolutions:

Authorize the City Manager to Execute an Amended License Agreement with SamTrans for Use of Restrooms at Lincoln Park Community Center for SamTrans Personnel

Resolution 26-1, Executing Amendment Of License Agreement With SamTrans For Use Of Restrooms At Lincoln Park Community Center

Check Registers

Check Registers for the Month of November 2025

END OF CONSENT AGENDA

AWARD OF BIDS/CONTRACTS:

Award of Construction Contract for the John Daly Boulevard/Skyline Boulevard Pedestrian Connection Project

Director of Public Works Richard Chiu provided the staff report to improve access to Thornton State Beach. The City received ten bids for the project, along with a formal bid protest submitted by Interstate Grading & Paving, Inc. After review, staff determined that the lowest bidder, Bay Area Lightworks, Inc., met all the requirements and submitted all the required documentation. S taff recommended awarding a construction contract to Bay Area Lightworks, Inc. for $612,955.00. Chiu addressed concerns regarding any risks or advantages associated with accepting a bid amount that is 45% below the Engineer’s estimate.

It was moved by Councilmember Manalo, seconded by Vice Mayor Proaño and carried by unanimous roll call vote to adopt the resolution.

Resolution 26-2, Authorizing Award Of Construction Contract For The John Daly Boulevard/Skyline Boulevard Pedestrian Connection Project

APPOINTMENTS:

Mayor Sylvester emphasized the vital role that City Commissioners play as volunteers in the Daly City community. He proposed forming an ad hoc committee as a top priority to support the promotion of commission vacancies, develop protocols, define the purpose of each commission, and to track commissioner attendance, with the goal to improve the effectiveness of the commissions. Sylvester spoke about the priority of each Councilmember having the responsibility to appoint members to the commissions, encouraging them to fill vacancies. He invited Vice Mayor Proaño to join him on the ad hoc committee, to which the Vice Mayor agreed.

CITY OF DALY CITY
MINUTES – SPECIAL MEETING – CITY COUNCIL
JANUARY 6, 2026
3 REPORTS:

Council Committee

Council of Cities Dinner (Colma) (Proaño, Manalo, Sylvester)

City Council

Councilmember Manalo reported attendance at the following events: the 15th anniversary celebration of the Northern California Nursing Academy, along with Vice Mayor Proaño and Mayor Sylvester; the 76th Operation Santa Claus, where she delivered toys across the City with her family; the San Francisco Farms Bureau Event, along with representatives from the Cow Palace ; the annual Christmas giveaway by Pacific Islands Together (PIT) to deliver toys to families, thanking the firefighters, police staff, Director Sakkal and City Manager Piccolotti for their participation; the Council of Cities Dinner; and the County Board of Supervisors’ Reorganization meeting, thanking District 5 Supervisor and former President Canepa and congratulating its new President, Corzo and new Vice President, Mueller.

Vice Mayor Proaño reported attendance at the following events: PIT’s Christmas giveaway, along with Councilmember Manalo, recognizing Reyna Meafua from PIT for her compassion, and acknowledging the children, the volunteers, and the police and fire staff for their participation; the Christmas toy drive event at Serramonte Center alongside Councilmember Manalo; and the Council of Cities Dinner in the Town of Colma.

Mayor Sylvester reported attendance at the following events: the Pickleball Tournament and toy drive by PIT, acknowledging Ms. Reyna and PIT members for serving 2,000 children this past Christmas; and the Council of Cities in Colma, where donations were raised for veterans' housing, acknowledging the firefighters for their participation.

Councilmember Daus -Magbual denounced the actions of the Federal administration for the situation in Venezuela, particularly the capture and kidnapping of a world leader and jeopardizing international relations for the U.S. Dr. Daus-Magbual also condemned the President for directing the illegal operation, asserting that he not only put members of the U.S. military at risk but also endangered the people of Venezuela.

ADJOURNMENT:

Mayor Sylvester adjourned the meeting in memory of William J. “Bill” Duggan and Diosdado “Dado” Banatao at 8:03 P.M.

Approved as submitted, this
City Clerk
day of January 2026.

Glenn R. Sylvester
Mayor

City Council Meeting Agenda Report Item # _____

Meeting Date: January 26, 2026

Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Clerical Technical Unit

Recommended Action

That the City Council adopt by resolution the Memorandum of Understandings and salary schedules between the City of Daly City and Teamsters Local 856 Clerical Technical Unit.

Discussion

The management “meet and confer” representatives designated by the City Council of the City of Daly City have met and conferred in good faith with the representatives of Teamsters Local 856 Clerical Technical Unit and, as a result, have arrived at a Memorandum of Understanding concerning wages, hours and conditions of employment as follows:

Salary Increase:
• Effective the first full pay period of September 2025 - 3% salary increase • Effective the first full pay period of September 2026 - 3% salary increase • Effective the first full pay period of September 2027 - 3% salary increase

Equity Adjustment:
• Effective the first full pay period of September 2025 – 1% equity adjustment • Effective the first full pay period of September 2026 – 0.5% equity adjustment • Effective the first full pay period of September 2027 – 0.5% equity adjustment

Longevity Pay:

All bargaining unit members who have completed twenty (20) years of service with the City of Daly City will receive additional compensation added to their base salary in the amount of one hundred dollars ($100.00) per month.

Bilingual Pay:

Effective January 1, 2026, bilingual Pay will increase to $150.00 per month. The City will determine the number of positions, the shifts, the eligible languages and the standards and procedures for certification of such pay.

Vision Reimbursement Program:

• Effective January 1, 2026, the above maximum calendar reimbursement for frames and lenses will increase to three hundred dollars ($300.00).

City Council Agenda Report
Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Clerical Technical Unit Meeting Date: January 26, 2026

• Effective January 1, 2027, the above maximum calendar reimbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00). • Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

Fiscal Impact

Staff recommends appropriating $165,155 for FY 2026 and $301,971 for FY 2027 for estimated increase in costs due to the contracts. Of the totals being appropriated, for FY 2026, $127,139 would be utilizing General Fund – Fund Balance, $25,051 would use Water Fund- Fund Balance and $12,965 would use Sanitation Fund – Fund Balance. For 2027, $235,498 would utilize the General Fund – Fund Balance, $43,979 from the Water Fund – Fund Balance and $22,494 from the Sanitation Fund – Fund Balance.

Summary/Conclusion

Staff requests that the City Council adopt the Memorandum of Understanding between the City of Daly City and Teamsters Local 856 Clerical Technical Unit for the period of September 1, 2025, through August 31, 2028.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Natalie Sakkal
Director of Human Resources

Attachment: Tracked Changes Teamsters Local 856 Clerical Technical MOU

10357167.1 DA003-007

MEMORANDUM OF UNDERSTANDING

Teamsters Local 856, IBT

CLERICAL TECHNICAL UNIT

September 1, 20252 through August 31, 20285

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

Table of Contents
ARTICLE I – SALARIES ......................................................................................... 4 ARTICLE II – BENEFITS ........................................................................................ 5 ARTICLE III - RETIREMENT ................................................................................. 7 ARTICLE IV - STATE DISABILITY INSURANCE (SDI) .................................... 8 ARTICLE V - HOLIDAYS ....................................................................................... 9 ARTICLE VI - VACATION ..................................................................................... 9 ARTICLE VII – LEAVES ....................................................................................... 10 ARTICLE VIII - WORK SCHEDULES ................................................................. 12 ARTICLE IX - SUPPLEMENTAL ASSIGNMENT .............................................. 12 ARTICLE X- EDUCATION ................................................................................... 12 ARTICLE XI - LIST OF EMPLOYEES ................................................................. 12 ARTICLE XII – STEWARDS ................................................................................ 13 ARTICLE XIII - UNION REPRESENTATIVE ..................................................... 13 ARTICLE XIV - DUES DEDUCTION .................................................................. 13 ARTICLE XV - BULLETIN BOARDS .................................................................. 15 ARTICLE XVI - ACCESS TO PERSONNEL FILES ............................................ 15 ARTICLE XVII – MISCELLANEOUS PROVISIONS ......................................... 15 ARTICLE XVIII – RECOGNITION ...................................................................... 17 ARTICLE XIX - GRIEVANCE PROCEDURE ..................................................... 17 ARTICLE XX - COOPERATION BETWEEN PARTIES ..................................... 19 ARTICLE XXI - SEPARABILITY OF PROVISIONS .......................................... 19 ARTICLE XXII - FULL UNDERSTANDING ...................................................... 19 ARTICLE XXIII – DURATION ............................................................................. 20 ARTICLE XXIV – SIGNATORIES ....................................................................... 20 APPENDIX A - TEAMSTERS, LOCAL 856 - CLERICAL/TECHNICAL UNIT CLASSIFICATIONS ............................................................................................... 21 APPENDIX B - BIWEEKLY SALARY SCHEDULE Z ....................................... 22 APPENDIX B-1 - BIWEEKLY SALARY SCHEDULE Z .................................... 23

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX C – DISCIPLINE ................................................................................ 25 APPENDIX D - DISCIPLINARY APPEAL PROCEDURE .................................. 26 APPENDIX E - PROCESS FOR RECLASSIFICATIONS .................................... 29

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF DALY CITY
and
TEAMSTERS LOCAL 856 - CLERICAL/TECHNICAL BARGAINING UNIT September 1, 20252 through August 31, 20285

The adjustments to wages, hours and conditions of employment that ar e set forth in this Memorandum have been negotiated by and between the bargaining representatives of the City of Daly City (hereinafter, “"City”") and the bargaining representatives of Teamsters Local 856, Clerical/Technical Unit (hereinafter, “"Union”"), and shall apply to a ll employees of the City working in the classifications set forth in Appendix “"A"”, as relevant to the employee's Civil Service classified and non-classified employment status.

The adjustments to wages, hours and conditions of employment that ar e set forth in this memorandum have been negotiated in good faith and agreed upon as being an equitable adjustment of present wages, hours and conditions of employment, between the bargaining representatives of the City and the bargaining representatives of th e Union. The bargaining representatives of the Union represent that its members have accepted and ratified all of the adjustments set forth herein; and the bargaining representatives of the City agree to recommend to the City Council that all of the adjustments as set forth herein be adopted in full by the City Council in the same manner and procedure prescribed by law.

ARTICLE I – SALARIES
A. Cost of Living Adjustments

2.1. Effective in the first full pay period of September 2025, a three percent (3%) salary increase shall be applied to the salary scheduleA four percent (4%) cost of living adjustment effective September 3, 2022 (Appendix B).

3.2. Effective in the first full pay period of September 2026, a three percent (3%) salary increase shall be applied to the salary schedule A four percent (4%) cost of living adjustment effective September 2, 2023 (Appendix B-1).

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

4.3. Effective in the first full pay period of September 2027, a three percent (3%) salary increase shall be applied to the salary scheduleA four percent (4%) cost of living adjustment effective September 14, 2024. (Appendix B-2).

B. Amend the salary schedule as followsEquity Adjustments:

1. Effective the first full pay period of September 2025, a one percent (1%) salary increase shall be applied to the salary schedule.

2. Effective the first full pay period of September 2026, a one-half percent (0.5%) salary increase shall be applied to the salary schedule.

3. Effective the first full pay period of September 2027, a one percent (0.5%) salary increase shall be applied to the salary schedule.

1. The above equity adjustments will be additive to and not compounding with the Cost of Living increases.Effective the first full pay period of September 2022, create and assign Permit Assistant II to new Range 37Z, Appendix B.

C. City will continue to make av ailable the Section IRC 414(h) option to affected members.

Eligibility to participate and the irrevocable conditions of one-time-only election continue to be pursuant to the regulations as set forth by the Internal Revenue Service.

ARTICLE II – BENEFITS

A. Medical Insurance Benefits
The City will continue to contract with th e Teamsters Union Local 856 Health and Welfare Packages for the purpose of providing employees with medical insurance benefits.

Domestic partners will be afforded coverage in accordance with T eamsters 856 Trust Fund plan rules and regulations. (Please see the providers’ plan description for details.)

The Teamsters 856 Trust Fund wi ll determine eligib ility for those empl oyees who elect to receive benefits through the Teamsters 856 Trust Fund.

B. Cafeteria Plan Allowance
The City will maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing empl oyees with access to various he alth and welfare benefits.

Benefits available through the Cafeteria Plan include, but are not limited to, medical insurance, flexible spending accounts for out-of-pocket me dical expenses and dependent care, dental insurance and life insurance benefits. The City agrees to provide a Cafeteria Plan Allowance to all employees eligible to participate in C ity-sponsored health bene fits under Section A of this Article. Any tax consequences resulting from City contributions to the Cafeteria Plan are the sole responsibility of the employee.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

The City’s monthly contribution will be as follows:

1. In the event that health benefits are provided through a composite rate, the City’s monthly contribution amount shall be the Teamsters Union Local 856 Health and Welfare Package’s composite rate or an amount equivalent to 95% of the PERS Kaiser Bay Area family rate, whichever is lower.

2. In the event that health benefits are broken down by coverage levels, the City’s monthly contribution shall be equivalent to the Teamsters rate for each level of coverage or the PERS Kaiser Bay area rate for each level of coverage at 100% for employee only coverage and 95% for employee +1 or employee + family, whichever is lower.

3. From the Cafeteria Plan Allowance, employees must purchase the following qualified benefits:

• City-sponsored dental/orthodontic insurance or Teamsters sponsored dental plan • City-sponsored life insurance ($50,000)
• City-sponsored long term disability insurance

C. Cash in lieu

1. Eligibility: Employees who opt out of the medical plan and receive cash must provide the following: (1) proof that the employee and all individuals for whom the employee intends to claim a personal exemption deduction (“tax family”), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”); and (2) the employee must sign an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year. The opt-out payment cannot be made and the City will not in fact make payment if the City knows that the employee or tax family member doesn’t have such alternative coverage, or if the co nditions in this paragraph are not otherwise satisfied. Employees and know n dependents who do not provide the annual information required will be enrolled in the lowest cost health plan.

2. Cash in lieu shall be $500 per month.

D. Long Term Disability
The City agrees to continue to provide a long-term disability plan to provide sixty-six and two- thirds percent (66-2/3rd's) of salary to a maximum of $4,000 per month after a 60-day waiting period and exhaustion of accumulated sick leave. The employee shall pay $8.50/month towards the monthly premium and the City contributes towards the balance of the premium up to

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

$51.50 per month. Further, the City agrees to increase its maximum contribution by 80% of any increase in the plan premium during the term of this agreement.

E. Vision Reimbursement Program
Employees and their dependents are eligible for a maximum reimbursement of $200.00 per year for frames or lenses. The reimbursement may be requested every 12 months.

1. Effective January 1, 2026: the above maximum calendar reimbursement for frames and lenses will increase to three hundred dollars ($300.00).

2. Effective January 1, 2027, the above maximum calendar reimbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00).

3. Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

ARTICLE III - RETIREMENT
The City contracts with the California Publ ic Employees’ Retirement System (CalPERS) to provide retirement benefits as follows:

A. Classic Members
For classic members as defined by CalPERS and California Public Employees’ Pension Reform Act of 2013 (PEPRA) the City’s contract with CalPERS provides the following:

• Section 21354.3 –- 3% @ Age 60
• Section 20042 –- One-Year Final Compensation
• Section 21335 – Annual Cost-Of-Living Allowance Increase (3%) • Section 20965 – Credit for Unused Sick Leave
• Section 21548 – Pre Retirement Optional Settlement 2W Death Benefit • Section 21573 –- 1959 Survivor Benefit – Third Level • Section 21620 –- $500 Retired Death Benefit
• Section 21024 – Military Service Credit as Public Service

B. New Members
For new members hired on or after January 1, 2013, as defined by CalPERS and PEPRA, the City’s contract with CalPERS provides the following:
• Section 7522.20 –- 2% @ Age 62
• Section 20037 –- Three-Year Average Final Compensation • Section 21335 – Annual Cost-of- Living Allowance Increase (3%) • Section 20965 – Credit for Unused Sick Leave
• Section 21548 – Pre Retirement Optional Settlement 2W Death Benefit • Section 21573 –- 1959 Survivor Benefit Third Level

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

• Section 21024 – Military Service Credit as Public Service • Section 21620 –- $500 Retired Death Benefit

C. Cost-Sharing
Employees shall contribute a to tal of 5.51% towards the empl oyer’s share of the CalPERS contribution.

Effective September 10, 2016, bargaining unit employees shall pay an additional point seven five percent (0.75%) towards the employer share of the CalPERS contribution.

D. Retiree Medical
a. Employees hired prior to November 14, 2022
The City’s contribution to retiree health for qualifying annuitants will be increased annually as required under PEMHCA. The City’s monthly contribution to qualifying annuitants will be:

EE up to $769.50
EE + 1 up to $721.54
Famil
y up to $948.13

b. Employees hired on or after November 14, 2022
The retiree medical benefit contribution from the City for bargaining unit employees hired on after November 14, 2022, shall be limited to the PEMHCA minimum.

The City shall contribute $50 per month to the current ICMA retiree health savings account (or any account established under this section) for employees with the PEMHCA minimum retiree medical benefit.

ARTICLE IV - STATE DISABILITY INSURANCE (SDI)

The City will continue to contract with the State of California to provide for the State Disability Insurance Plan for employees covered by this Memorandum of Understanding. State Disability Insurance is a plan solely funded by employee contributions and there shall be no contributions by the City toward State Disability Insurance.

In disability cases arising outsi de the course of the employee's employment, State Disability Insurance benefits and sick benefit allowances sh all be paid separately, but in the event State Disability Insurance payments cover all or part of the period during which sick benefit allowances are paid, the sum of the two (2) shall not exceed the sick benefit payable for said period, and the unused portion of accumulated sick leave will continue to be credited to the employee. Integration of sick leave benefits with State Disability Insu rance payments is to be automatic; the City may

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

not waive integration, and any em ployee entitled to State Disabi lity Insurance payments must apply therefore (in order that the principle of integration may be applied) before sick benefits are payable.

ARTICLE V - HOLIDAYS
A. Affected regular full-time employees shall be entitled to take the following observed holidays at full pay, not to exceed eight (8) hours for any one (1) day, provided they are in a paid status on both their regularly scheduled workdays immediately preceding and following the holiday:

New Year's Da
y Veteran's Da y
Martin Luther King, Jr. Birthday Thanks giving Day
President's Day Da y after Thanksgiving Day
Memorial Day Christmas Eve (one-half da y)
Juneteenth (celebrated) Christmas Da y
Independence Day New Year's Eve (one-half da y)
Labor Day

Per the City of Daly City Municipal Code, a ffected employees shall receive the one-half day for both Christmas Eve and New Year's Eve on the last regularly scheduled workday preceding the day observed as a Legal holiday for Christmas Day and New Year's Day. If a holiday falls on a Sunday such holiday will be observed on the Monday directly following the holiday. If a holiday falls on a Saturday such holiday shall be observed on the Friday directly preceding the holiday.

In the event that any of the holidays specified in Article VIII occur while an employee is on an authorized vacation, the holiday will not be charged to vacation.

If an employee becomes sick during his/her vaca tion, such employee shall charge the period of illness against sick leave, provided that a doctor’s certificate or personal affidavit is submitted prior to such charge against sick leave.

B. Holiday Closure
The City reserves the right to close City Hall operations from December 24th through December 31st. During City Hall closure, employees will be required to use available accrued vacation, comp time, floating holidays or other applicable leave (not sick leave) or take unpaid time if accrued leave is not available. The City will provide at least ninety (90) days’ notice of the City Hall Closure to employees.

ARTICLE VI - VACATION
A. Employees accrue paid vacation as follows:

Completed Years of
Employment
Annual Vacation
Accrual

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

1 through 4 13 da ys
5 through 12 18 da ys
13 through 20 23 da ys
21 or more 28 da ys

B. Vacation Cash Out
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to 40 hours of accrued vacation (in whole hour increments) which will be earned in the following calendar year at the employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in the following year, the employee will receive cash for the amount of vacation the employee irrevocably elected to cash out in the prior year. However, if the employee’s vacation leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out.

ARTICLE VII – LEAVES

The provision Rule XVII Leaves of the Rules and Regulations of the Classified Service apply to employees in the unit.

A. Sick Leave
Pursuant to the Rules and Regul ations of the Classified Service, Rule XVII, Leaves of Absence, Section 6, affected classified “"full time employees shall accrue sick leave at the rate of twelve (12) working days* per year. Unus ed sick leave may be accrued for succeeding years up. ”" Also, Rule XVII Leaves of Absence, Section 6, “"Sick leave shall not be considered as a right which may be used at the employee's discretion, but a privilege which should be allowed only in case of necessity, actual disability and illness as required by law.”" The maximum pay out of 50% of accumulated, unused sick leave at the time of retirement, death or abolishment of position remains at a cash value not to exceed 100 days of pay.

Employees hired on or after July 1, 2020, shall not be el igible to cash out sick leave upon separation from employment.

*For purposes of section A, a workday shall be defined as the number of non-overtime hours in the day that the employee is scheduled to work.

B. Bereavement Leave
A maximum of five (5) working days of paid bereavement leave may be taken for deaths occurring in the immediate fam ily. As used here, “immediat e family” member means child, parent, sibling, grandparent, gr andchild, domestic partner, pa rent-in-law, and any other individual identified in the City’s Rules and Re gulations of the Classifi ed Service, Rule 1,

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

Definition of Terms. Payment for time off will be subject to formal request to the City Manager by the employee who shall state the relationship to the deceased.

For purposes of this section, a “working day” shall be defined as the number of non-overtime hours in the day that the employee is scheduled to work.

C. On-the-Job Injury Leave

Employees are entitled to On-The-Job-Injury Leav e as provided for in the City’s Rules and Regulations of the Classified Service, Rule XVII, Section 9 and Chapter 2.44 of the Daly City Municipal Code regarding temporary disability.

SECTION 9 ON-THE-JOB-INJURY INJURIES LEAVE
(a) Conditions
Whenever any miscellaneous City employee who is not a temporary or recurrent employee is disabled by injury or illness arising out of and in the course of duty, the employee, regardless of the period of service with the City, shall become entitled to a leave of absence without loss of salary while so disabled in lieu of tempor ary disability payments under worker's compensation for a period not to exceed one ye ar. Workers’ Compensation Injury Leave as follows:

1. Up to 90 calendar days of Injury Leave, either consecutive or cumulative, while so disabled, in lieu of Temporary Disability, paid at 80% of the employee’s total regular gross wages. In addition, the disabled employee sh all receive any cafeteria or ot her City paid health care benefits to which s/he is entitled.

2. After the disabled employee has received Inju ry Leave at 80% of gross wages pursuant to section 1 above for a period of 90 calendar days , either consecutive or cumulative, if still disabled and eligible for Temporary Disability benefits as provided in the California Workers’ Compensation Act, the employee shall be compensated at the appropriate State Temporary Disability rate. In order to continue full salary, accrued sick and vacation leave may be used to supplement temporary disabili ty payments rece ived under the California Workers’ Compensation Act. In addition, the disabled employee shall receive any cafeteria or other City paid health care benefits to which s/he is entitled. Such compensation shall continue until the employee has received disability payments unde r this section and section 1 above for a maximum of 365 calendar days, either consecutiv e or cumulative. Such entitled The Injury Leave described in sections 1 and 2 above is "Family and Medical Care Leave" Qualifying.

All temporary disability indemnity payments to which the employee is entitled during the referenced period, by virtue of the City's workers' compensation insurance, must be paid to the City.

3. If after receiving 365 calendar days of Injury Leave pa y as provided above the employee remains eligible for Temporary Disability bene fits as provided in the California Workers’ Compensation Act, the employee shall be placed in an authorized leave without pay status and shall receive Temporary Disability benefits di rectly from the City’s Workers’ Compensation Claims Administrator or Insurer, at the State mandated rate.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

D. Personal Leave
The City provides affected employees two hours of personal leave to be taken at any time during the calendar year that is agreeable to the employee and the employee’'s department head. Said two hours personal leave shall be taken each year pursuant to the above conditions and shall not accrue from year to year.

ARTICLE VIII - ALTERNATE WORK SCHEDULES

The regular work week shall consist of forty (4 0) hours and the regular wo rkday shall consist of either eight (8) hours, nine (9) hours or ten (10) hours or twelve (12) hours. Each Department has the right to change work schedules during the term of this Agreement following the completion of any required meet and confer obligations.

For employees with a regular wo rkweek of 37.5 total hours, the workday can also consist of 9.5 hours.

The City and Teamsters Local 856 Clerical /Technical Bargaining Unit members agree to cooperatively discuss and, under direction of the department head with concurrence from the City Manager, may implement pilot programs on alte rnative work schedules for certain affected employees during the term of this agreement. Such programs shall be reviewed and evaluated by the department head at least ev ery six months to determine con tinuation or necessary changes.

Evaluation shall include discussion with affected employees.

ARTICLE IX - SUPPLEMENTAL ASSIGNMENT

It is understood by the parties that assignmen t of an employee to supplemental duties and supplemental compensation is at the sole discretion of the City.

ARTICLE X- EDUCATION
The City agrees that affected classified and non-classified em ployees may be reimbursed for educational expenses of job-related courses upon prior approval by the Department Head and upon successful completion of course work.

ARTICLE XI - LIST OF EMPLOYEES
The City shall furnish to a representative designated by the Union, the name(s), classification and date of hire of employees ne wly appointed to the classifications set forth in Appendix “"A”" and employees leaving such classifications. The Ci ty, upon request of the Un ion, shall provide to a

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

representative designated by the Union a list reflecting salary range for affected classifications once per year.

ARTICLE XII – STEWARDS

The Union shall be entitled to a reasonable number of stewards, who shall restrict their activities to the handling of grievances and shall be allo wed a reasonable amount of time for this purpose.

The Union shall notify the City Manager in writing of the names of the stewards.

Stewards shall obtain permission from their supervisors before leaving their workstations to resolve grievances. This provision shall not be used to prevent the stewards from performing their duties or obligations set forth in this section provided, however, that the use of time for this purpose shall be reasonable and shall not interfere with the requirements of the City's services, as determined by the City.

When an employee is required to meet with a supervisor and such meeting will involve questioning leading to disciplinary action, the employee shall be entitled to have a representative present upon request of the employee.

ARTICLE XIII - UNION REPRESENTATIVE

A qualified representative of the Union shall be allowed to visit the work location for the purpose of ascertaining whether or not this Memorandum of Understanding is being observed. This right shall be exercised reasonably. A qualified representative of the Union shall report to management before proceeding to the work location. S/he shall not interfere with the normal conduct of work.

Solicitation of membership and activities concerne d with the internal management of the Union, such as collecting dues, holding membership meetings, campaigning for office, conducting elections and distributing literature, shall not be conducted during working hours.

City employees, the Union, or their officially designated Union representatives may, with the prior approval of the Department Head or his/her designated representative, be granted the use of City facilities during non-work hours for meetings of City employees provided space is available. All such requests shall be in writing and shall state the purpose or purposes of the meeting.

The use of equipment other than items normally used in the conduct of business meetings, such as desks, chairs, ashtrays and blackboards is strictly prohibited, the presence of such equipment in approved City facilities notwithstanding.

ARTICLE XIV - DUES DEDUCTION

The Union shall be entitled to have authorized dues and other authorized deductions of its members deducted from their paychecks in accordance with the procedures set forth herein.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

Payroll deductions and authorized deductions shall be made for each individual for whom the City has received a request in writing from the Union for the payroll deduction to be made. The Union shall notify the city of all elec ted and revoked dues in a timely manner. The City shall process each change in deductions in the first applicable pay period following receipt of the Unions’ notification.

If the City receives any questions from employees regarding union membership or dues, the City shall direct the employee to the Union and shall not provide advice on these matters.

Teamsters D.R.I.V.E. Voluntary Contributions
The City agrees to deduct vol untary contributions to Teamst ers DRIVE (Democrat, Republican, Independent, Voter Education) from the pay of those employees who request, in writing, on a form supplied by the Union and submitted to the City, that such deductions be made. The effective date of withholdings, time of remitting withholding to the Union, and all procedural matters shall be as mutually acceptable to the Union and the City, pr ovided that the City's payroll system and its operations are not thereby disrupted.

New Employees

Within thirty (30) calendar days of hiring, the City shall provid e the name, job ti tle, department, work location and telephone number, personal cellular telephone number, and personal email address on file of the new employee in this bargaining unit to the Union.

The City shall provide Union written notice of new employee orientations for employees new to this bargaining unit at least ten (10) business days prior to the event. Union representatives shall be permitted to make a presentati on of up to thirty (30) minutes, and present written materials, during a portion of the orientation for which attendance is mandatory. No representative of management shall be present during the Union’s presentation. The City shall provide an adequate and reasonable amount of release time for designated officers and representatives of the Union to participate in the new employee orientations.

The Union shall indemnify, defend, and save the City of Daly City, its officers, agents and employees, harmless against any and all claims, demands, suits, orders, or judgments, or other forms of liability that arise out of or by reason of this Section, or action taken or not taken by the City under this Section, and shall promptly reimburse the City for reasonabl e legal fees and costs in curred by the City in responding to or defending against any claims, disputes or challenges. This includes, but is not limited to, the City’'s attorney fees and costs to and including the reserved right of the City to select counsel of its own choice.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

ARTICLE XV - BULLETIN BOARDS

The Union shall be provided suitable space on a bulletin board at the primary work location for posting notices concerning official Union business.

The Union may use portions of a Department bulletin board under the following conditions:
(1) All materials must be dated and must identify the Union that published them. (2) Unless special arrangements are made, materi als posted will be rem oved thirty-one (31) days after the publication date.
(3) The Department reserves the right to determ ine where a bulletin board shall be placed and what portion of it is to be allocated to Union's materials. (4) If the Union does not abide by these rules, it may forfeit its right to have materials posted on a Department bulletin board.

ARTICLE XVI - ACCESS TO PERSONNEL FILES
An employee or, on presentation of written authorization executed by the employee within thirty (30) days of said review, an employee's re presentative shall have access to the employee ’'s personnel file upon request and at the reasonabl e convenience of the Personnel Department.

Documentation in the personnel file relating to th e investigation of a possible criminal offense, medical records, pre-employment background information, and information or letters of reference shall be specifically excluded from the inspec tion and review of the employee and/or the employee's representative. Pe rsonnel files shall be reviewed by the employee or his/her representative in the presence of a designated Hu man Resources Department representative. An employee may request a copy of materials whic h are not excluded from inspection and review under this section. The City will provide employees with all copi es of performance evaluations and warning letters.

ARTICLE XVII – MISCELLANEOUS PROVISIONS

A. Bilingual Pay
The City provides one hundred dollars ($100.00) per month bilingual pay to those employees who become certified and eligible for such pay and who are routinely and consistently assigned to positions requiring communicat ion skills in languages other th an English. The City will determine the number of positions , the shifts, the eligible languages, and the standards and procedures for certification for such pay. Effective January 1, 2026, bilingual pay will increase to one hundred and fifty dollars ($150.00) per month.

The following languages are approved for bilingual pay compensation: Spanish, Tagalog, Mandarin, Cantonese, Korean, Vietnamese, Indonesian and American Sign Language.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

B. Callback Pay for Police Records Clerks
Police Records Clerk I’s & II’s shall receive callback pay as per rule 16, section 10 of the Rules & Regulations of the Classified Service. When an affected Police Records Clerk I or Police Records Clerk II is called back to work on a City-celebrated holiday, the callback minimum will be increased to three and one half (3.5) hours at the rate of time and one-half.

C. Training Supplement
Police Records Clerk II’s assigned to train new Police Records Clerk I’s or II’s shall receive five hours of compensatory time off for each five full shifts under such assignment. If training assignments are for less than five shifts, compensatory time off shall be awarded pro-rata. The employee may elect to receive equivalent cash payment in lieu of compensatory time off.

D. Letters of Reprimand
Employees may request in writing to the Depar tment Head with a copy to the Director of Human Resources that letters of reprimand whic h are four (4) or more years old be removed from the employee’s personnel file provided the following conditions are met:

1. The Letter of Reprimand is more than 4 years old.

2. The file does not contain subsequent letters of reprimand or records of disciplinary action.

3. The employee has not been notified in writing of pending disciplinary action at the time the written request to remove said letters of reprimand.

4. The Union will be provided a copy of the Letter of Reprimand.

E. Labor/Management Committee
Personnel Rules Update-The City and the Union will continue to meet and confer on noneconomic changes to the Personnel Rules that are within the scope of bargaining. Changes that are within the scope of bargaining will not be made until the meet and confer process is completed.

F. Discipline
See Appendix C.

G. Disciplinary Appeal Procedure
See Appendix D.

H. Reclassification Process
See Appendix E.

I. Classification/Compensation Survey (provision sunsets June 30, 2028) The City will initiate a market compensation survey during the second year of this Agreement (September 1, 2026-August 31, 2027). At the Union’ s request, the parties will discuss the market compensation survey during a labor/management committee meeting prior to completion of the survey. Once complete, the City will share the results of the survey with the Union.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

I.J. Mandatory Direct Deposit
All employees will participate in mandatory direct deposit for payroll (including all compensation and reimbursements).

J.K. Furloughs
The City has the right to nego tiate furloughs during th e term of this Agr eement. The City would be required to provide notice and an opportunity to negotiate furloughs. Furloughs would be implemented either by agreement between the parties or upon completion of negotiations and the impasse procedures.

K.L. Release Time

During the term of this Agreement the City agrees to permit Union stewards to attend up to one day of Union training. Paid release time will be provided on one occasion for up to one full shift for stewards only. This Union release time does not accumulate and may not be carried over from year to year. This additional release time shall not continue past the expiration of this Agreement unless negotiated by the parties.

M. Longevity Pay
Employees who have completed twenty (20) years of service with the City of Daly City will received additional compensation added to their base salary in the amount of one hundred dollars ($100.00) per month.

To the extent legally permissible, the City shall report longevity pay to CalPERS pursuant to Title 2 CCR, Section 571 (a) (1) and 571.1(b) (1) as Longevity Pay.

ARTICLE XVIII – RECOGNITION

Teamsters Local 856 is recognized as the exclusive representative pursuant to the City of Daly City Employer-Employee Relations Resolution for all employees assigned to the classifications set forth in Appendix “"A”" which is attached and made a part hereof.

ARTICLE XIX - GRIEVANCE PROCEDURE

A grievance is defined as a condition that exists as a result of an unsatisfactory adjustment or failure to adjust a claim or di spute by an employee or employee ’'s relative to the application or interpretation of the Rules and Regulations of the Classified Service, Departmental Rules and Regulations, Memorandum of Unde rstanding, established policies and procedures of the City or department (whether written or or al) or, a dispute or disagreement as to the facts pertaining to a disciplinary matter.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

The means, manner, method or merit of any service or activity provided by law or executive order; collective issues of salary, fringe benefits, or working condition subject to meeting and conferring; any disciplinary action sh all not be a subject of the grievance procedure. All grievances shall be processed in accordance with the following procedure:

Step l: No matter shall be considered a grievance until it is first take n up orally by the employee and/or the Steward with the immediate supervisor who will attempt to settle the matter, and the immediate supervisor shall render a decision within three (3) working days.

Step 2: If any such grievance or complaint is not settled by the procedure above described, it shall within three (3) working days be set forth in writing by the Union and submitted to the Division Head. Within three (3) working days thereafter, there shall be a meeting between the aggrieved employee, the Union Steward, the Union Representative, and the Division Head in an attempt to settle the matter. Within three (3) working days following such meeting, the employer shall give a written reply to the grievance.

Step 3: If any such grievance or complaint is not settled by the procedure above described, it shall within thirty (30) working days be set fort h in writing by the Union and submitted to the Department Head. Within three (3) working days thereafter, there shall be a meeting between the aggrieved employee, the Union Steward, the Union Representative, and the Department Head in an attempt to settle the matter. Within three working (3) days following such meeting, the Employer shall give a written reply to the grievance.

Step 4: If any such grievance or complaint is not settled by the procedure above described, it shall within three (3) working days be set forth in writing by the Union and submitted to the City Manager. Within three (3) working days ther eafter, there shall be a meeting between the aggrieved employee, the Union Steward, the Union Representative, and the City Manager in an attempt to settl e the matter. Within th ree (3) working days following such meeting, the Employer shall give a written reply to the grievant.

Step 5: If any such grievance has not been se ttled by the procedure described, the grievance may within seven (7) working days be submitted to the Personnel Board, if eligible under the Rules and Regulations then in effect and in accordance with Step 6 below, or to advisory arbitration in accordance with Step 7 below. The grievant has the right to select the Personnel Board process or advisory arbitration for the appeal, but may not do both.

Step 6: The City Council shall act upon the recommendation of the Personnel Board within thirty (30) calendar days following the date of their receipt of the recommendation.

Step 7: Advisory Arbitration. If the grievant is dissatisfied with the decision of the City Manager in Step 4, the grievant may appeal the grievance to advisory arbitration.

The request for advisory arbitr ation must be given in writing to the City Manager by the grievant within ten (10) working days from the date of the Step 4 answer.

An arbitrator may be selected by mutual agreement between the grievant’s representative and the City’s representative. Should the representatives fail to mutually agree on an arbitrator, they shall make a joint request to the California State Conciliation and

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

Mediation Service, the American Arbitration Association, or some other source mutually agreed upon, for a list of five (5) qualified arbitrators. The parties shall each strike two (2) names from the list and the remaining person shall be accepted as the arbitrator. The first party to strike shall be determined by the flip of a coin.

The jurisdiction and authority of the arbitrator so selected and the opinions the arbitrator expresses will be confined exclusively to th e interpretation of the express provision or provisions of the MOU or Rules and Regulations of the Classified Service at issue between the parties. The arbitrator shall have no aut hority to add to, subtract from, alter, amend, or modify any provisions of the MOU or Rules and Regulations of the Classified Service or impose any limitations or ob ligations not specifically provided for under the terms of the MOU or Rules and Regulations of the Classified Service.

The arbitrator shall be without power or authority to recommend any decision that would require the City or the administration to do an act prohibited by law.

The fees of the arbitrator will be born equally by the employee or employee association and the City. However, the City will re imburse up to $15,000 towards the Teamsters Local 856 Clerical Technical Unit cost of arbitration in cases where the City Council goes against the advisory recommendation to the detriment of the employee or Association.

ARTICLE XX - COOPERATION BETWEEN PARTIES

The Union agrees to jointly cooperate with th e City in increasing co mmunications between the employees and the supervisors and to improve pe rformance and productivity. The City and the Union recognize the importance of employee involvement in the operations of the City.

ARTICLE XXI - SEPARABILITY OF PROVISIONS

Should any section, clause or provision of this MOU be declared illega l by final judgment of a court of competent jurisdiction, su ch invalidation of such section, clause or provisions shall not invalidate the remaining portions hereof, and such rema ining portions shall remain in full force and effect for the duration of this MOU.

In the event of such invalidation, the parties ag ree to meet and confer concerning substitute provisions for the provisions rendered or declared illegal.

ARTICLE XXII - FULL UNDERSTANDING

This MOU constitutes a full and complete agreement by the parties and contains all of the matters upon which the parties reached agreement. There will be no alteration or modification of any provision contained in this MOU without the written consent of all parties hereto. Existing practices and/or benefits which are not referenced in this MOU and which are subject to the meet and confer process shall continue without change unless modified subject to the meet and confer

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

process. Nothing in this MOU shall be cons trued to vest any Civil Service status upon non- classified employees.

ARTICLE XXIII – DURATION

Except as specifically provided, the effective date of this MOU is upon ratification by both parties.

The term of this Memorandum of Understanding shall be from September 1, 20252 through August 31, 20285.

ARTICLE XXIV – SIGNATORIES

Signatories to this Memorandum of Understanding between the City of Daly City and Teamsters Local 856 Clerical/Technical Bargaining Unit:

REPRESENTATIVES FOR THE REPRESENTATIVES FOR
CITY OF DALY CITY: TEAMSTERS LOCAL 856
CLERICAL/TECHNICAL UNIT:

____________________________ ______ ____________________________ ______ Natalie Sakkal Date Mark Leach Date Director of Human Resources Business Representative

___________________________ _______ ___________________________ _______ Timothy Nevin Date Peter Finn, Secretary Treasurer Date Director of Finance & Administrative ServicesAssistant City Manager

___________________________ _______
Abby Veeser Date
Deputy Director of Finance & Administrative Services

___________________________ _______
Bonnie Woo Date
Assistant to the Director of Human Resources

___________________________ _______
Donna WilliamsonTevon Edwards D a t e
Chief Negotiator

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX A - TEAMSTERS, LOCAL 856 - CLERICAL/TECHNICAL UNIT

CLASSIFICATIONS

CLASSIFIED EMPLOYEES
Office Assistant I
Office Assistant II
Office Assistant III
C a s h i e r
Account Clerk I
Account Clerk II
Account Clerk III
Accounting Technician
Community Development Assistant
Registration Clerk
Senior Accounting Technician
Police Records Clerk I
Police Records Clerk II
P e r m i t A s s i s t a n t I
Permit Assistant II

NON-CLASSIFIED EMPLOYEES
Senior Center Office Assistant

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX B - BIWEEKLY SALARY SCHEDULE Z
TEAMSTERS LOCAL 856

CLERICAL/TECHNICAL UNIT
Effective September 13, 20252

Range Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 Z 016 A Re gistration Clerk 2602.09 2732. 19 2868.80 3012.24 3162.85 Z 016 A Senior Center Office Assistant 2602.09 2732.19 2868.80 3012.24 3162.85 Z 016 A Office Assistant I 2602.09 2732.19 2868.80 3012.24 3162.85 Z 018 C Police Records Clerk I 2612. 77 2743.41 2880.58 3024.61 3175.84 Z 025 A Account Clerk I 2862.50 3005.62 3155.90 3313.70 3479.38 Z 125 A Office Assistant II 2898.70 3043.64 3195.82 3355.61 3523.39 Z 026 C Police Records Clerk II 2912. 58 3058.21 3211.12 3371.67 3540.26 Z 030 A Permit Assistant I 3108.64 3264.07 3427.27 3598.64 3778.57 Z 030 A Office Assistant III 3108.64 3264.07 3427.27 3598.64 3778.57 Z 031 A Account Clerk II 3148.80 3306. 24 3471.55 3645.13 3827.38 Z 031 A Cashie r 3148.80 3306.24 3471.55 3645.13 3827.38 Z 033 A Account Clerk III 3337.99 3504. 89 3680.14 3864.14 4057.35 Z 037 A Permit Assistant II 3412.75 3583.39 3762.56 3950.69 4148.22 Z 038 A Accounting Technician 3489.82 3664.31 3847.53 4039.91 4241.90 Z 042 A Senior Accountin g Technician 3674.33 3858.05 4050.95 4253.50 4466.18

A - 40 hours per week
C - 37.5 hours per week

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX B-1 - BIWEEKLY SALARY SCHEDULE Z
TEAMSTERS LOCAL 856

CLERICAL/TECHNICAL UNIT
Effective September 12, 20263

Range Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 Z 016 A Re gistration Clerk 2693.16 2827. 82 2969.21 3117. 67 3273.55 Z 016 A
Senior Center Office
Assistant 2693.16 2827.82 2969.21 3117.67 3273.55
Z 016 A Office Assistant I 2693.16 2827.82 2969.21 3117. 67 3273.55 Z 018 C Police Records Clerk I 2704. 22 2839.43 2981.40 3130.47 3287.00 Z 025 A Account Clerk I 2962.69 3110.82 3266.36 3429.68 3601.16 Z 125 A Office Assistant II 3000.16 3150.17 3307.68 3473. 06 3646.71 Z 026 C Police Records Clerk II 3014. 52 3165.25 3323.51 3489.68 3664.17 Z 030 A Permit Assistant I 3217.44 3378.31 3547.23 3724. 59 3910.82 Z 030 A Office Assistant III 3217.44 3378.31 3547.23 3724.59 3910.82 Z 031 A Account Clerk II 3259.01 3421. 96 3593.05 3772. 71 3961.34 Z 031 A Cashie r 3259.01 3421.96 3593.05 3772.71 3961.34 Z 033 A Account Clerk III 3454.82 3627. 56 3808.94 3999. 39 4199.36 Z 037 A Permit Assistant II 3532.20 3708.81 3894.25 4088. 96 4293.41 Z 038 A Accounting Technician 3611.97 3792.57 3982.19 4181.30 4390.37 Z 042 A
Senior Accounting
Technician 3802.94 3993.08 4192.74 4402.37 4622.49

A - 40 hours per week
C - 37.5 hours per week

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX B-2 - BIWEEKLY SALARY SCHEDULE Z

TEAMSTERS LOCAL 856

CLERICAL/TECHNICAL UNIT
Effective September 11, 20274
Range Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 Z 016 A Re gistration Clerk 2787.42 2926. 79 3073.13 3226.79 3388.13 Z 016 A Senior Center Office Assistant 2787.42 2926.79 3073.13 3226.79 3388.13 Z 016 A Office Assistant I 2787.42 2926.79 3073.13 3226.79 3388.13 Z 018 C Police Records Clerk I 2798.87 2938.81 3085.75 3240.04 3402.04 Z 025 A Account Clerk I 3066.38 3219.70 3380.68 3549.72 3727.20 Z 125 A Office Assistant II 3105.17 3260.42 3423.44 3594.62 3774.35 Z 026 C Police Records Clerk II 3120.03 3276.03 3439.83 3611.82 3792.41 Z 030 A Permit Assistant I 3330.05 3496.55 3671.38 3854.95 4047.70 Z 030 A Office Assistant III 3330.05 3496.55 3671.38 3854.95 4047.70 Z 031 A Account Clerk II 3373.07 3541.72 3718.81 3904.75 4099.99 Z 031 A Cashie r 3373.07 3541.72 3718.81 3904.75 4099.99 Z 033 A Account Clerk III 3575.74 3754.53 3942.25 4139.37 4346.33 Z 037 A Permit Assistant II 3655.83 3838.62 4030.55 4232.08 4443.68 Z 038 A Accounting Technician 3738.39 3925.30 4121.57 4327.65 4544.03 Z 042 A Senior Accountin g Technician 3936.04 4132.84 4339.48 4556.46 4784.28

A - 40 hours per week
C - 37.5 hours per week

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX C – DISCIPLINE
The following Rule XVIII Standards of Employment of the Rules and Regulations of the Classified Services is attached below for reference.

SECTION 10 Causes for discipline or discharge. Each of the following constitutes cause for disciplinary action or discharge of an employee. (Rev 12/12/88-Res #88-298)

(a) Chronic absenteeism
(b) Discourteous treatment of the p ublic, supervisors, other employees (c)I Failure to follow directions, policies and procedures (d) Improper political activity
(e) Inappropriate use of drugs and alcohol
(f) Incompetence
(g) Inexcusable neglect of duty
(h) Insubordination
(i) Loss of equipment or property
(j) Misuse of City time
(k) Misuse or damage of City equipment or property
(l) Sexual harassment
(m) Tardiness
(n) Untruthfulness
(o) Vehicle accident
(p) Violation of City and/or Department rules, regulations, policies and procedures (q) Violation of City, State and/or Federal Law(s)

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX D - DISCIPLINARY APPEAL PROCEDURE
The City’s disciplinary appeal procedure provides for an evidentiary hearing before the Personnel Board. The Board has the authority to make an advisory recommendation to the City Council.

The City Council has final authority.

A. Personnel Board Appeal Hearing

1. If, within the five (5) day appeal period, the employee involved does not file an appeal, unless good cause for failure is shown, the action of the City Manager or Department Head shall be considered final and binding.

2. If, within the five (5) day appeal period the employee files an appeal as specified in the Letter of Disciplinary Action by sending a letter to the City Manager and copy to the Director of Human Resources, the City Manager shall inst ruct the Director of Human Resources to request the Personnel Board set an appeal hearing.

3. At its next regular or special meeting, the Personnel Board shall set a hearing date which shall not be more than sixty (60) days from the da te of the filing of the employee’s appeal. All interested parties shall be notified in writing of the date, time and place of the hearing at least ten (10) days prior to the date of the hearing.

4. All hearings shall be open unless the employee requests a closed hearing.

5. The Chairperson of the Personnel Board shall issue subpoenas at the request of either the City or the appealing employee prior to the commencement of the hearing. Subpoenas must be served at least twenty-four (24) hours prior to the time attendance is compelled.

6. The hearing need not be conduc ted according to technical rules relating to evidence and witnesses, except hereinafter provided. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of the evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

by statute to be recognized at the hearing, and irrelevant and unduly repetitious evidence shall be excluded.

7. The Chairperson of the Personnel Board shall rule on the admission or exclusion of evidence.

8. Each party shall have these rights:
a. To be represented by legal counsel or other person of the party’s choice b. To call and examine witnesses
c. To introduce evidence
d. To cross examine opposing witnesses on any matter relevant to the issues e. To impeach any witness regardless of which party first called the witness to testify f. To rebut the evidence against them

9. Oral evidence shall be taken only under Oath.

10. The hearing shall proceed in the following order unless the Chairperson, for special reason, otherwise directs:
a. The City shall be permitted to make an opening statement. b. The employee shall be permitted to make an opening statement. c. The City shall present its case in chief.
d. The employee may then present a defense and offer evidence in support. e. The parties may then, in or der respectively, offer rebutting evidence, unless the Chairperson of the Board for good reason pe rmits them to offer evidence upon their original case
f. Closing arguments or briefs shall be permitted at the discretion of the Chairperson of the Personnel Board.

11. The Personnel Board shall determine the relevance, weight and credibility of testimony and evidence and shall base their findings on the preponderance of evidence.

12. The Personnel Board shall render its “Findings, Recommendations and Conclusions” as soon as possible after the conclusion of the hearing and no later then ten (10) days after conducting the hearing unless otherwise stipulated by the parties. The Board’s Decision shall set forth the recommendations as to each of the charges and the reasons therefore.

13. The Personnel Board may recommend to the City Council the sustaining or rejecting of any or all of the charges filed against the em ployee. The Board may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee.

B. City Council Appeal Hearing
The decision of the Personnel Board is adviso ry only. The proposed decision shall be filed with City Council and served on the employee. If a suspension, dismissal or demotion is not sustained by the City Council, they shall se t forth the recommende d effective date the

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

employee is to be reinstated, which may be any time on or after the date the disciplinary action went into effect. If the Council does not sustain or modifies a suspension, they shall set forth the effective dates of the modification, whic h may be any time on or after the date the suspension went into effect.

The matter is set before City Council at the ne xt scheduled meeting that falls more than five days from the filing of the proposed decision. The City Council hearing shall be open unless the employee requests a closed hearing. The h earing shall consist of summary arguments by the City’s representative and the employee’s representative.

The City Council may recess to Closed Session to deliberate after the presentation of the summary arguments. The City Council announces in Public Session its determination; it may affirm, deny, or modify the Personnel Board’s recommendation. The determination of the City Council is final and binding.

Memorandum of Understanding
City of Daly City and Teamsters Local 856 – Clerical/Technical Unit September 1, 20252 through August 31, 20285

APPENDIX E - PROCESS FOR RECLASSIFICATIONS
1- During November, December and January of each year, an employee may request once every thirty-six (36) months, a reevaluation of his/her job based on:
• significant changes in job content and/or
• significant discrepancies between job content and classification description, and/or responsibilities assigned.

The request must contain justification, and shall be made to Human Resources, who will acknowledge the request within ten (10) day of receipt. 2- Depending on the nature of the request and the information submitted, the job analysis may include such techniques as:
• Comparison of information supplied in the classification analysis to current job description • Salary and job description survey of other cities that may have matching classifications • Interview with incumbent, immediate supervisor, and/or department head • Physical desk/job audit
• Analysis of similar classifications or positions in the City for equity purposes

It is the City’s expectation that the job analysis will be completed within 90 days. If the City is unable to complete the job analysis within this time frame, the Union will be contacted and provided an updated date of completion.

At the City’s discretion, an outside consultant may be retained to complete the reclassification analysis and make a recommendation to the City.
3- If an employee does not agree with Human Resources’ draft recommendation, they can request a meeting with Human Resources within ten (10) days of receiving the determination.

The Human Resources Director will respond in writing with the final recommendation no later than ten (10) days after this meeting.
4- The final recommendation will be communicated via a memo with any supporting documentation from Human Resources to the City Manager. All recommendations are subject to the City Manager’s approval. In addition to the City Manager’s approval, reclassifications may be subject to approval by the Personnel Board and/or City Council.

Employees in the reclassification process may have a representative present at the meeting with Human Resources regarding the reclassification results.

City Council Meeting Agenda Report Item # _____

Meeting Date: January 26, 2026

Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Police Assistants

Recommended Action

That the City Council adopt by resolution the Memorandum of Understandings and salary schedules between the City of Daly City and Teamsters Local 856 Police Assistants.

Discussion

The management “meet and confer” representatives designated by the City Council of the City of Daly City have met and conferred in good faith with the representatives of Teamsters Local 856 Police Assistants and, as a result, have arrived at a Memorandum of Understanding concerning wages, hours and conditions of employment as follows:

Salary Increase:

• Effective the first full pay period of September 2025 - 3% salary increase • Effective the first full pay period of September 2026 - 3% salary increase • Effective the first full pay period of September 2027 - 3% salary increase

Equity Adjustment:

• Effective the first full pay period of September 2025 – 1% equity adjustment • Effective the first full pay period of September 2026 – 0.5% equity adjustment • Effective the first full pay period of September 2027 – 0.5% equity adjustment

Longevity Pay:

All bargaining unit members who have completed twenty (20) years of service with the City of Daly City will receive additional compensation added to their base salary in the amount of one hundred dollars ($100.00) per month.

Uniform Allowance:

Effective January 1, 2026, uniform allowance shall increase to $900/year.

Bilingual Pay:

Effective January 1, 2026, bilingual Pay will increase to $150.00 per month. The City will determine the number of positions, the shifts, the eligible languages and the standards and procedures for certification of such pay.

City Council Agenda Report
Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Police Assistants
Meeting Date: January 26, 2026

Vision Reimbursement Program:

• Effective January 1, 2026, the above maximum calendar reimbursement for frames and lenses will increase to three hundred dollars ($300.00).
• Effective January 1, 2027, the above maximum calendar reimbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00). • Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

Fiscal Impact

Staff recommends appropriating $88,470 for FY 2026 and $160,952 for FY 2027 utilizing the General Fund – Fund Balance for estimated increase in costs due to the contracts.

Summary/Conclusion

Staff requests that the City Council adopt the Memorandum of Understanding between the City of Daly City and Teamsters Local 856 Police Assistants for the period of September 1, 2025, through August 31, 2028.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Natalie Sakkal
Director of Human Resources

Attachment: Tracked Changes Teamsters Local 856 Police Assistants MOU

MEMORANDUM OF UNDERSTANDING

Teamsters Local 856, IBT

POLICE ASSISTANTS UNIT

September 1, 202522 through August 31, 20285

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

TABLE OF CONTENTS

ARTICLE I - DUES DEDUCTIONS ............................................................................................. 3 ARTICLE II – SALARIES ............................................................................................................. 4 ARTICLE III – BENEFITS ............................................................................................................ 5 ARTICLE IV – RETIREMENT ................................................................................................... 77 ARTICLE V - ADMINISTRATIVE PROVISIONS ...................................................................... 8 ARTICLE VI - HOURS AND OVERTIME ............................................................................ 1110 ARTICLE VII - MISCELLANEOUS PROVISIONS .............................................................. 1312 ARTICLE VIII - DISABILITY INSURANCE ........................................................................ 1514 ARTICLE IX - HOLIDAYS ......................................................................................................... 15 ARTICLE X – VACATION ..................................................................................................... 1615 ARTICLE XI – LEAVES ......................................................................................................... 1616 ARTICLE XI - COURT TIME ................................................................................................. 1818 ARTICLE XII - COOPERATION BETWEEN PARTIES ...................................................... 1818 ARTICLE XIII – DURATION ..................................................................................................... 18 ARTICLE XIV - SIGNATORIES ............................................................................................ 1919 APPENDIX A - BIWEEKLY SALARY SCHEDULE D ........................................................ 2021 APPENDIX A-1 - BIWEEKLY SALARY SCHEDULE D ..................................................... 2122 APPENDIX A-2 - BIWEEKLY SALARY SCHEDULE D ..................................................... 2223 APPENDIX B - GRIEVANCES AND APPEALS .................................................................. 2324 APPENDIX C – DISCIPLINE ................................................................................................ 2425 APPENDIX D- DISCIPLINARY APPEAL PROCEDURE .................................................... 2526 APPENDIX E - PROCESS FOR RECLASSIFICATIONS ..................................................... 2728

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

MEMORANDUM OF UNDERSTANDING
September 1, 20252 through August 31, 20285
Between the City of Daly City
and
Teamsters Local 856, Police Assistants

The adjustments to wages, hours and conditions of employment that ar e set forth in this Memorandum have been discussed by and between th e bargaining representatives of the City of Daly City (hereinafter, “"City”") and the bargaining representati ves of the Teamsters Local 856 Police Assistants (h ereinafter called “"Union”") and shall apply to all employees in the City working in the classifications of:

Community Services Officer
Police Assistant I
Police Assistant II
Senior Police Assistant
The adjustments to wages, hours and conditions of employment that are set forth in the memorandum have been discussed in good faith and agreed upon as being an equitable adjustment of present wages, hours and conditions of employment between the bargaining representatives of the City and the bargaining representatives of the Union. The Union representatives represent that a majority of the members of the Union have approved all of the salary and fringe benefit adjustments as set forth herein; and the bargaining representatives of the City agree to recommend to the City Council that all of the adjustments as set forth herein be ad opted in full by the City Council in the same manner and procedure prescribed by law.

ARTICLE I - DUES DEDUCTIONS

The Union shall be entitled to have authorized dues and other authorized deductions of its members deducted from their paychecks in accordance with the procedures set forth herein.

Payroll deductions and authorized deductions shall be made for each individual for whom the City has received a request in writing from the Union for the payroll deduction to be made. The Union shall notify the Ccity of all elected and revoked dues in a ti mely manner. The City shall process each change in deductions in the first applicab le pay period following receipt of the Union ’s’ notification.

If the City receives any questions from employees regarding union membership or dues, the City shall direct the employee to the Union and shall not provide advice on these matters.

Teamsters D.R.I.V.E. Voluntary Contributions

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

The City agrees to deduct vol untary contributions to Teamst ers DRIVE (Democrat, Republican, Independent, Voter Education) from the pay of those employees who request, in writing, on a form supplied by the Union and submitted to the City, that such deductions be made. The effective date of withholdings, time of remitting withholding to the Union, and all procedural matters shall be as mutually acceptable to the Union and the City, pr ovided that the City’s payroll system and its operations are not thereby disrupted.

New Employees

Within thirty (30) calendar days of hiring, the City shall provid e the name, job ti tle, department, work location and telephone number, personal cellular telephone number, and personal email address on file of the new employee in this bargaining unit to the Union.

The City shall provide Union written notice of new employee orientations for employees new to this bargaining unit at least ten (10) business days prior to the event. Union representatives shall be permitted to make a presentati on of up to thirty (30) minutes, and present written materials, during a portion of the orientation for which attendance is mandatory. No representative of management shall be present during the Union’s presentation. The City shall provide an adequate and reasonable amount of release time for designated officers and representatives of the Union to participate in the new employee orientations.

The Union shall indemnify, defend, and save the City of Daly City, its officers, agents and employees, harmless against any and all claims, demands, suits, orders, or judgments, or other forms of liability that arise out of or by reason of this Section, or action taken or not taken by the City under this Section, and shall promptly reimburse the City for reasonabl e legal fees and costs in curred by the City in responding to or defending against any claims, disputes or challenges. This includes, but is not limited to, the City’'s attorney fees and costs; to and including the reserved right of the City to select counsel of its own choice.

ARTICLE II – SALARIES

A. Cost of LivingSalary Increases:
• Effective in the first full pay period of September 2025, a three percent (3%) salary increase shall be applied to the salary scheduleEffective September 3, 2022, bargaining unit members shall receive a four percent (4%) cost of living increase. (See Appendix A)

• Effective in the first full pay period of September 2026, a three percent (3%) salary increase shall be applied to the salary scheduleEffective September 2, 2023, bargaining unit members shall receive a four percent (4%) cost of living increase. (See Appendix A- 1)

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

• Effective in the first full pay period of September 2027, a three percent (3%) salary increase shall be applied to the salary scheduleEffective September 14, 2024, bargaining unit members shall receive a four percent (4%) cost of living increase. (See Appendix A- 2)

E
B. Equity Adjustments:

1. Effective the first full pay period of September 2025, a one percent (1%) salary increase shall be applied to the salary schedule.

2. Effective the first full pay period of September 2026, a one-half percent (0.5%) salary increase shall be applied to the salary schedule.

3. Effective the first full pay period of September 2027, a one percent (0.5%) salary increase shall be applied to the salary schedule.

The above Equity Adjustments will be additive to and not compounding with the Cost of Living increases. ffective September 3, 2022, the City shall adjust the Police Assistant II salary range to be 5% above Police Assistant I and shall adjust the Community Services Officer salary range to be 10% above Police Assistant I.

B. The City will continue to make available the IRC Section 414(h) to affected members. Eligibility to participate and the irrevocable conditions of one-time-only election continue to be pursuant to the regulations as set forth by the Internal Revenue Service.

ARTICLE III – BENEFITS

A. Medical Insurance Benefits
The City will continue to contract with th e Teamsters Union Local 856 Health and Welfare Packages for the purpose of providing employees with medical insurance benefits. Domestic partners will be afforded coverage in accord ance with Teamsters 856 Trust Fund plan rules and regulations. (Please see the provider’s plan description for details .) The Teamsters 856 Trust Fund will determine eligibility for those employees who elect to receive benefits through the Teamsters 856 Trust Fund.

B. Cafeteria Plan Allowance
The City will maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing empl oyees with access to various he alth and welfare benefits.

Benefits available through the Cafeteria Plan include, but are not limited to, medical insurance, flexible spending accounts for out-of-pocket me dical expenses and dependent care, dental insurance and life insurance benefits. The City agrees to provide a Cafeteria Plan Allowance to all employees eligible to participate in C ity-sponsored health bene fits under Section A of this Article. Any tax consequences resulting from City contributions to the Cafeteria Plan are the sole responsibility of the employee.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

The City’s monthly contribution will be as follows:
• In the event that health benefits are provided through a composite rate, the City’s monthly contribution amount shall be the Teamsters Union Local 856 Health and Welfare Package’s composite rate or an amount equivalent to 95% of the PERS Kaiser Bay Area family rate, whichever is lower.

• In the event that health benefits are broken down by coverage levels, the City’s monthly contribution shall be equivalent to the Teamsters rate for each level of coverage or the PERS Kaiser Bay area rate for each level of coverage at 100% for employee only coverage and 95% for employee +1 or employee + family, whichever is lower.

From the Cafeteria Plan Allowance, employees must purchase the following qualified benefits:
• City-sponsored dental/orthodontic insurance (if not selecting the Teamsters option)
• City-sponsored life insurance ($50,000)
• City-sponsored long term disability insurance

C. Cash in lieu

1. Eligibility: Employees who opt out of the medical plan and receive cash must provide the following: (1) proof that the employee and all individuals for whom the employee intends to claim a personal exemption deduction (“tax family”), have or will have minimum essential coverage through another source (other than coverage in the individu al market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”); and (2) the employee must sign an attestation that the employee and his/her tax family have or will have su ch minimum essential coverage for the opt out period. An employee must provide th e attestation every plan year at open enrollment or within 30 days after the star t of the plan year. The opt-out payment cannot be made and the City will not in fact make paym ent if the City knows that the employee or tax family me mber doesn’t have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied. Employees and known dependents who do not provide the annual information required will be enrolled in the lowest cost health plan.

2. Cash in lieu shall be $500 per month.

D. Vision Reimbursement Program: Employees and their dependents are eligible for a maximum reimbursement of $200.00 per year for frames or lenses. The reimbursement may be requested every 12 months.

1. Effective January 1, 2026: the above maximum calendar reimbursement for frames and lenses will increase to three hundred dollars ($300.00).

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

2. Effective January 1, 2027, the above maximum calendar reimbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00).

3. Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

D.

ARTICLE IV – RETIREMENT

The City contracts with the California Public Employees’ Retirement System (“CalPERS”) to provide retirement benefits as follows:

A. Classic Employees: For classic employees as defined by CalPERS and California Public Employees’ Pension Reform Act of 2013 (“PEPRA”), the City’s contract with the CalPERS provides the following:
• Section 20042 – One Year Final Compensation
• Section 21335 – Annual Cost-of-Living Allowance Increase (3%) • Section 20965 – Credit for Unused Sick Leave
• Section 21573-– 1959 Survivor Benefit Level 3 for affected employees • Section 21354.3 –- 3% @ Age 60
• Section 21548 –- Pre-Retirement Optional Settlement 2W Death Benefit • Section 21620 –- $500 Retired Death Benefit
• Section 21024 – Military Service Credit as Public Service

B. New Employees: For new employees hired on or after January 1, 2013, as defined by CalPERS and PEPRA, the City’s contract with CalPERS provides the following:
• Section 20037 –- Final Compensation Three Year
• Section 21335 – Annual Cost-of-Living Allowance Increase (3%) • Section 20965 – Credit for Unused Sick Leave
• Section 21573 –- 1959 Survivor Benefit Level 3 for affected employees • Section 7522.20 –- 2% @ Age 62
• Section 21548 –- Pre-Retirement Optional Settlement 2W Death Benefit • Section 21024 – Military Service Credit as Public Service • Section 21620 –- $500 Retired Death Benefit

Employees in this group will maintain the current employee contribution of 5.41% towards the employer’s share of the CalPERS contribution.

C. Cost Sharing - Bargaining unit members shall pay an additional (.75%) towards the employer share of the CalPERS contribution.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

D. Retiree Medical
a. Employees hired prior to November 14, 2022
The City’s contribution to retiree health for qualifying annuitants will be increased annually as required under PEMHCA. The City’s monthly contribution to qualifying annuitants will be:

EE up to $940.55
EE + 1 up to $940.55
Famil
y up to $940.55

b. Employees hired on or after November 14, 2022
The retiree medical benefit contribution from the City for bargaining unit employees hired on after November 14, 2022, shall be limited to the amount provided as the PEMHCA minimum under Government Code section 22892.

For employees with the PE MHCA minimum retiree medical benefit, the City shall contribute $50 per month to the ICMA City’s contracted retiree health savings account.

ARTICLE V - ADMINISTRATIVE PROVISIONS

A. The City will honor requests for dues deductions from employees who are members of the Union.

B. Reprimands: City agrees to provide the Uunion with copies of all written reprimands given to its members, provided that:

• The employees provide a written release in advance to the Human Resources Director, • Copies supplied to the union at the same time as given to the employee, • Union to designate an agent for service of such copies, and • Applies only to written reprimands.

C. Letters of Reprimand:

Employees may request in writing to the Depar tment Head with a copy to the Director of Human Resources that letters of reprimand whic h are four (4) or more years old be removed from the employee’s personnel file provided the following conditions are met:

1. The Letter of Reprimand is more than 4 years old.

2. The file does not contain subsequent letters of reprimand or records of disciplinary action.

3. The employee has not been notified in writing of pending disciplinary action at the time the written request to remove said letters of reprimand.

4. The Union will be provided a copy of the Letter of Reprimand.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

D. Grievance Procedure: (See Appendix B)
A grievance is defined as a condition that exists as a result of an unsatisfactory adjustment or failure to adjust a claim or dispute by an em ployee or employees regarding the application or interpretation of The Rules and Regulations of the Classified Service, Departmental Rules and Regulations, Memorandum of Understanding, established policies and procedures of the City or department (whether written or oral) or, a dispute or disagreement as to the facts pertaining to a disciplinary matter.

The means, manner, method or merit of any se rvice or activity provided by law or executive order; collective issues of salary, fringe benefits, or working condition subject to meeting and conferring; any discipli nary action shall not be a subject of the grievance procedure. All grievances shall be processed in accordance with the following procedure:

Step l: No matter shall be considered a grie vance until it is first taken up orally by the employee and/or the Steward with the i mmediate supervisor who will attempt to settle the matter and the immediate superv isor shall render a decision within three (3) working days.

Step 2: If any such grievance or complaint is not settled by the procedure above described, it shall within three (3) working days be set forth in writing by the Union and submitted to the Division Head. Within three (3) working days thereafter, there shall be a meeting between the aggrieved employee, the Union Steward, the Union Representative, and the Division Head in an attempt to settle the matter. Within three (3) working days follo wing such meeting, the empl oyer shall give a written reply to the grievance.

Step 3: If any such grievance or complaint is not settled by the procedure above described, it shall within thirty (30) working days be set forth in writing by the Union and submitted to the Department Head. Within three (3) working days thereafter, there shall be a meeting between the aggrieved employee, the Union Steward, the Union Representative, and the Department Head in an attempt to settle the matter. Within three working (3) days following such mee ting, the Employer shall give a written reply to the grievance.

Step 4: If any such grievance or complaint is not settled by the procedure above described, it shall within three (3) working days be set forth in writing by the Union and submitted to the City Manager. Within three (3) working days thereafter, there shall be a meeting between the aggrieved employee, the Union Steward, the Union Representative, and the City Manager in an attempt to settle the matter. Within three (3) working days following such mee ting, the Employer shall give a written reply to the grievance.

Step 5: If any such grievance has not been settled by the procedure described, the grievance may within seven (7) working days be submitted to the Personnel Board, if eligible under the Rules and Regulations then in effect and in accordance with Step 6 below, or to advisory arbitration in accordance w ith Step 7 below. The grievant has the

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

right to select the Personne l Board process or advisory arbitration for the appeal, but may not do both
Step 6: The City Council shall act upon the recommendation of the Personnel Board within thirty (30) calendar days following the date of their receipt of the recommendation.

Step 7: Advisory Arbitration. If the grievant is dissatisfied with the decision of the City Manager in Step 4, the grievant may appeal the grievance to advisory arbitration.

The request for advisory arbitration must be given in writing to the City Manager by the grievant within ten (10) working days from the date of the Step 4 answer.

An arbitrator may be selected by mu tual agreement between the grievant’s representative and the City ’s representative. Should th e representatives fail to mutually agree on an arbitrator, they sha ll make a joint request to the California State Conciliation and Media tion Service, the American Arbitration Association, or some other source mutu ally agreed upon, for a list of five (5) qualified arbitrators. The parties sh all each strike two (2) na mes from the list and the remaining person shall be accepted as the arbi trator. The first party to strike shall be determined by the flip of a coin.

The jurisdiction and authority of the arbi trator so selected and the opinions the arbitrator expresses will be confined exclusively to the interpretation of the express provision or provisions of the MOU or Ru les and Regulations of the Classified Service at issue between the parties. The arbitrator shall have no authority to add to, subtract from, alter, amend, or modify any provisions of the MOU or Rules and Regulations of the Classified Service or impose any limi tations or obligations not specifically provided for under the terms of the MOU or Rules and Regulations of the Classified Service. The arbitrator shall be without power or authority to recommend any decision that would require the City or the administration to do an act prohibited by law.

The fees of the arbitrator will be born equally by the employee or employee association and the City. However, the City will reimburse up to $15,000 towards the Teamsters Local 856 Police Assistant Unit cost of arbitration in cases where the City Council goes against the advisory recommendation to the detriment of the employee or Association.

E. The City and Union agree to a joint labor/management committee comprised of three (3) Police Department Managers appointed by the Chief of Police and three (3) employee representatives, one an officer of the Union, and one Polic e Assistant both appointed by the employee organization. The committee will normally meet monthly, or on some other mutually agreeable schedule, on a date and at a time and location mutually agreed to by both parties. Agenda items shall be submitted three (3) working days prior to the meeting. The purpose of the meetings will be to discuss ongoing issues of mutual concern. This committee is not a substitute for meet and confer, nor does it have the authority to modify the Memorandum of Understanding.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

ARTICLE VI - HOURS AND OVERTIME

A. When practicable, the City agrees to not require Police Assistants to work in excess of twelve (12) hours during any twenty-four (24) hour period. The determina tion whether or not a Police Assistant will be required to work in excess of twelve (12) hours during any twenty-four (24) hour period shall be made by the Police Chief or his designate. (In most cases for practical purposes, the Watch Commander.)

B. When practicable, each of the following provisions will be implemented for Police Assistants who may be requested to work overtime 1) shall be given one (1) hour advance notice of such overtime period; 2) and may be given a fifteen (15) minute paid break prior to the start of such overtime work. Determination as to who will carry out the above provision shall be made by the Chief of Police or his designate.

All voluntary overtime will be offered on a rota tional basis. If overtime cannot be filled voluntarily it shall be assigned as mandatory on a rotational basis beginning with the employee with the least amount of seniority.

All overtime will be filled in the order of Seni ority. Mandatory overtime will be assigned on a rotational basis. The employee with the least amount of seniority will be assigned first.

C. When practicable, the Police Assi stants shall receive two (2) uninterrupted paid fifteen (15) minute breaks, away from their work stations, one to be taken in the first half of the eight-hour work shift, and one to be taken in the second half of the eight-hour work shift. Determination as to who will carry out the above provision shall be made by the Chief of Police or his designate. (Usually, for practical purposes, the Watch Commander.)

D. When practicable, Police Assistants shall be given an uninterrupted thirty (30) minute unpaid lunch period, to be away from their work station. Determination on the above shall be made by the Chief of Police or his designate. (Usually, for practical purposes, the Watch Commander.) In the event that an employee is required to work through this meal break, the employee shall be compensated at the appropriate rate of pay.

D. The regular work week shall consist of forty (40) hours and the regular workday shall consist of either eight (8) hours, nine (9) hours or ten (10) hours or twelve (12) hours. The Department has the right to change work schedules during the term of this Agreement following the completion of any required meet and confer obligations.

E. Police Assistants Lunch
In lieu of the City paying overtime for business -related interruptions during lunch breaks, the Police Assistants will receive a thirty-minute paid lunch break.

F. Shift Bids

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

For purposes of determining seniority of and Police Assistants when bidding shift assignments/days off and vacations, no adjustment to length of service shall be made for any absence without pay. The City practice, tracked in Human Res ources, of adjusting the hire date after five or more consecutive days of authorized leave without pay to determine eligibility for merit increase and service credit will remain unchanged.

G. Shift Schedule
Except in cases of operational need, there w ill be a semi-annual watch change. The watch change will occur in March and September consistent with the Patrol Division’s watch change dates. The Police Department sh all post a list of shift assignm ents, which shall include the starting times of each shift and days off for each assignment. Police Assistants shall request a desired shift assignment and sha ll be awarded shift assignments on the basis of seniority and the availability of shifts. If a shift assignment/day-off change becomes necessary at times other than the semi-annual interval, Police Assistants shall be notified at least 72 hours in advance of implementation. If not given such notice, all hours worked on the ch anged shift (until 72 hours from notice) shall be comp ensated at the rate of time and one half of the employee's hourly rate of pay. The 72-hour notice requirement shall not apply to shift changes resulting from the Police Department not having 72 hours’ no tice of the need to replace an employee.

Sign up shall be done by the appropriate Division Commander or designee.

H. Shift Trades

1. Shift trades are a privilege, not a right, and are subject to written approval.

2. All requests for trade of shifts are to be submitted in writing to the Watch Commander on such form as prescribed by th e Daly City Police Department ( “DCPD”). Written determination of requests for trade of shift will be returned to the requesting employee(s) no later than 72 hours after receipt of the prescribed form.

3. Any request for shift trade submitted on the DCPD prescribed form less than 72 hours prior to the actual trade will be considered an "“Emergency”" request. Emergency requests will be evaluated on a case-by-case basis, but are still subject to written approval.

4. All "“pay backs”" are to be made within 60 days of the original trade.

5. Affected classifications must make all “"pay backs”" in the same time increments as the original trade except that paybacks of eight (8) hours can be made in no less than two 4-hour increments.

I. Alternate Work Schedules
The City and Union agree to cooperatively discuss and, under direction of the department head with concurrence from the City Manager, may implement pilot programs on alternative work schedules during the term of the agreement. Such programs shall be reviewed and evaluated by the department head at least every six mo nths to determine continuation or necessary changes. Evaluation shall include discussion w ith affected employees. Policy details and or determination of continuation of the alternat e work schedule shall be negotiated with the Union.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

ARTICLE VII - MISCELLANEOUS PROVISIONS

A. Training Supplement
Police Assistants assigned to train other Police Department employees (including Police Assistants and Police Officers) shall receive one hour of compensatory time for each eight (8) hours of training and pro-rated after eight (8) hours of training, if applicable. The employee may elect to receive equivalent cash payment in lieu of compensatory time off.

The Police Assistant Job Specification may be revised to include training duties. This revision would be subject to Personnel Board and City Council adoption.

B. Uniforms

1. Effective January 1, 2023, the City agrees to provide an annual uniform allowance of $800.00 for employees in the classification of Police Assistants, paid in equal installments of $30.77 per pay period. Effective January 1, 2026, the annual allowance shall increase to $900 and be paid in equal installments of $34.61 per pay period. To the extent legally permissible, the City shall report uniform allowance to CalPERS for Classic members only pursuant to Title 2 CCR, Section 571(a)(5) as uniform allowance.

2. Effective June 24, 2002, tThe City agrees to reimburse newly hired Police Assistants for the initial uniform purchase of two (2) shirts, two (2) pants, one (1) jacket and one (1) cap after authorization of purchase by the Chief of Police or designee and upon presentation of the invoice.

C. Bilingual Supplement Pay: The City provides one hundred dollars ($100.00) per month bilingual pay to those employees who become certified and eligible for such pay and who are routinely and consistently assigned to positions requiring communication skills in languages other than English.

The City will determine the number of positions, the shifts, the eligible languages, and the standards and procedures for certification for such pay. Effective January 1, 2026, bilingual pay will increase to one hundred and fifty dollars ($150.00) per month.A

The following languages are approved for bi lingual pay compensation: Spanish, Tagalog, Mandarin, Cantonese, Korean, Vietnamese, and American Sign Language. maximum of six (6) assignments will be designated for bilingual supplemental pay at the rate of $100.00 per month to those employees who become certified and eligible for such pay and who are routinely and consistently assigned to positions requiring communication skills in languages other than English. To be eligible for such designation, employees must achieve certification of fluency through the Human Resources Department. Only certified fluency in Spanish, American Sign Language, Tagalog, or a common dialect of Chinese will be considered for bilingual supplemental pay.

C.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

The Chief has absolute discretion to designate those Police Assistants who will receive bilingual supplemental pay assignments.

To the extent legally permissible, the City shall report bilingual supplement pay to CalPERS pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Bilingual Premium.

D. Longevity Pay -– All bargaining unit membersThose in the classification of Police Assistant who have completed twenty (20) years of service as Police Assistant with the City of Daly City will receive additional compensation added to their base salary in the amount of one hundred dollars ($100.00) per month.

To the extent legally permissible, the City shall report longevity pay to CalPERS pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1) as Longevity Pay.

E. No Discrimination: Neither the City nor the Union shall discriminate for or against any employee or applicant for employment or Union membership because of any legally protected classification including, but not limited to clas sifications such as race, relig ion, national orig in, sex, age, ancestry, color, sexual preference, religious creed, physical or mental disability which does not prevent an employee from meeting the minimum standards established.

F. Labor/Management Committee:

Personnel Rules: The City and the Association will continue to meet and confer on changes to the Personnel Rules that are within the scope of bargaining. Changes to subjects that are within the scope of bargaining will not be made until the meet and confer process is completed. Appendices in the MOU that are outdated due to the revision of Personnel Rules will be deleted removed subject to mutual agreement.

G. Discipline
See Appendix C.

H. Disciplinary Appeal Procedure:

See Appendix D.

I. Reclassification Process:

See Appendix E.

J. Mandatory Direct Deposit:

All employees will participate in mandatory direct deposit for payroll (including all compensation and reimbursements).

K. Classification/Compensation Survey (provision sunsets June 30, 2028) The City will initiate a market compensation survey during the second year of this Agreement (September 1, 2026-August 31, 2027). At the Union’ s request, the parties will discuss the

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

market compensation survey during a labor/management committee meeting prior to completion of the survey. Once complete, the City will share the results of the survey with the Union.

ARTICLE VIII - DISABILITY INSURANCE

A. Long Term Disability - The City agrees to continue to provide a Long Term Disability Plan to provide sixty-six and two-thirds percent (66-2/3%) of salary to a maximum of $6,000 per month after a 60-day waiting period and exhaustion of accumulated sick leave. The employee shall pay $8.50 towards the monthly premium and the City contributes towards the balance of the premium up to $51.50 per month. Further, the City agrees to increase its maximum contribution by 80% of any increase in the plan premium during the term of this agreement.

B. State Disability Insurance - The City shall continue to contract with the State of California to make available the St ate Disability Plan for employees covered by this Memorandum of Understanding. State Disability Insurance is a plan solely funded by employee contributions and there shall be no contribution by the City toward State Disability Insurance.

In disability cases aris ing outside the course of the empl oyee's employment, State Disability Insurance benefits and sick benefit allowances shall be paid separately, but in the event State Disability Insurance payments cover all or part of the period durin g which sick benefit allowances are paid, the sum of the two (2) shall not exceed the sick benefit payable for said period, and the unused portion of accumulated sick leave will continue to be credited to the employee. Integration of sick leave benefits with State Disability Insurance payments is to be automatic; the City may not waive integration, and any employee entitled to State Disability Insurance payments must apply therefore (in or der that the principle of integration may be applied) before sick benefits are payable.

ARTICLE IX - HOLIDAYS

B. Holidays for affected classifications shall be observed on the following days provided that an employee is in a paid status on the days immediately preceding and following the observed holiday:

New Year's Da
y, January 1 Veteran's Da y (City)
Martin Luther King, Jr., Holiday Thanks giving Day
President's Birthday (City) Da y after Thanksgiving Day Memorial Day (City) December 24 (four hours)
Juneteenth (City) Christmas Da y, December 25
Independence Day, July 4 December 31 (four hours)
Labor Day (City)

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

ARTICLE X – VACATION

Employees accrue paid vacation as follows:

Completed Years of Employment
Annual Vacation
Accrual
1 through 4 13 da ys
5 through 12 18 da ys
13 through 20 23 da ys
21 or more 28 da ys

ARTICLE XI – LEAVES

For purposes of this “Leaves” section, a workday is defined as eight (8) hours.

The provision in Rule XVII Leaves of the Rules and Regulations of the Cl assified Service apply to employees in the unit.

A. Sick Leave
Pursuant to The Rules and Regul ations of the Classified Service, Rule XVII, Leaves of Absence, Section 6, affected classified “full-time employees shall accrue sick leave at the rate of twelve (12) working days per year. ” Also, Rule XVII Leaves of Absence, Section 6, “Sick leave shall not be considered as a right which may be used at the employee’s discretion, but a privilege which should be allowed only in case of necessity and actual illness, disability, and as required by law.” The maximum pay out of 50% of accumulated, unused sick leave at the time of retirement, death, or abolishment of position remains at a cash value not to exceed 100 days of pay.

Employees hired on or after July 1, 2020, shall not be el igible to cash out sick leave upon separation from employment.

B. Bereavement Leave
Bereavement Leave may be taken in accordance with the City’s Bereavement Leave Policy.A maximum of five (5) working days* of paid bereavement leave may be taken for deaths occurring in the immediate fam ily. As used here, “immediat e family” member means child, parent, sibling, grandparent, gr andchild, domestic partner, pa rent-in-law, and any other individual identified in the City’s Rules and Regulations of the Classified Service, Rule 1, Definition of Terms and/or applicable California law. Payment of time off will be subject to formal request to the City Manager by th e employee. The City Manager may request documentation in support of such leave consistent with California Government Code 12945.7.

* For the purpose of this section a working day shall be defined as the number of non-overtime hours in the day that the employee is scheduled to work.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

C. Jury Duty
See Rules and Regulations of the Classified Service - Rule XVII Leaves of Absence.

D. On-the-Job Injury Leave
Affected employees disabled by injury or illnes s arising out of and in the course of duty, regardless of the period of service with the City, shall become entitled to a leave of absence in accordance with Rules and Regulations of the Classified Service Rule XVII Section 9 and Chapter 2.44 of the Daly City Municipal Code regarding temporary disability

SECTION 9 ON-THE-JOB-INJURY INJURIES LEAVE

(a) Conditions
Whenever any miscellaneous City employee who is not a temporary or recurrent employee is disabled by injury or illness arising out of and in the course of duty, the employee, regardless of the period of service with the City, shall become entitled to a leave of absence without loss of salary while so disabled in lieu of tempor ary disability payments under worker's compensation for a period not to exceed one ye ar. Workers’ Compensation Injury Leave as follows:

1. Up to 90 calendar days of Injury Leave, either consecutive or cumulative, while so disabled, in lieu of Temporary Disability, paid at 80% of the employee’s total regular gross wages. In addition, the disabled employee sh all receive any cafeteria or ot her City paid health care benefits to which s/he is entitled.

2. After the disabled employee has received Inju ry Leave at 80% of gross wages pursuant to section 1 above for a period of 90 calendar days , either consecutive or cumulative, if still disabled and eligible for Temporary Disability benefits as provided in the California Workers’ Compensation Act, the employee shall be compensated at the appropriate State Temporary Disability rate. In order to continue full salary, accrued sick and vacation leave may be used to supplement temporary disabili ty payments rece ived under the California Workers’ Compensation Act. In addition, the disabled employee shall receive any cafeteria or other City paid health care benefits to which s/he is entitled. Such compensation shall continue until the employee has received disability payments unde r this section and section 1 above for a maximum of 365 calendar days, either consecutiv e or cumulative. Such entitled The Injury leave Leave described in sections 1 and 2 above is “"Family and Medical Care Leave ”" Qualifying. All temporary disability indemnity payments to which the employee is entitled during the referenced period, by virtue of the City ’'s workers’' compensation insurance, must be paid to the City.

If after receiving 365 calendar days of Injury Leave pay as provided above the employee remains eligible for Temporary Disability benefits as provided in the California Workers’ Compensation Act, the employee shall be placed in an authorized leave without pay status and shall receive Temporary Disability benefits directly from the City’s Workers’ Compensation Claims Administrator or Insurer, at the State mandated rate.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

E. Personal Leave
The City provides affected employees two hours of personal leave to be taken any time during the calendar year that is agreeable to the employee and the employee's department head. Said two hours personal leave shall be taken each year pursuant to the above conditions and shall not accrue from year to year.

ARTICLE XI - COURT TIME
Affected employees who are required to be pres ent in court during their off-duty hours for cases arising from the performance of their duties shall be compensated at time and one-half for the actual hours present in court, and that for appearances when the ac tual time is two hours or less, the compensation will be two hours at time and one-half. The City agrees to provide up to a maximum of three (3) hours pay at straight time to off-duty Police Assistants who “"stand by”" to appear in court in performance of their duties for criminal and traffic cases at the direction of the District Attorney's Office. If an off-duty or Police Assistant is required to actually be present, the provision for the two (2) hour minimum pay at time and one-half will replace the Standby Time in full as described above. The City and the Union may evaluate this procedure during the term of the agreement and must mutually agree to modi fy or eliminate same if it creates unforeseen problems to the City or, Police Assistants.

ARTICLE XII - COOPERATION BETWEEN PARTIES

A. It is hereby agreed by the pa rties that this Memorandum of Understanding provides for the amicable adjustment of wages, hours and conditions of employment. Each party hereby gives full faith and recognition to the Rules and Regulations of the Classified Service, the City Code of the City of Daly City, and the laws of the State of California (including equal employment and fair employment statutes), and shall fully respect the rights, obligations, and privileges reserved to the other by such rules, regulations and la ws. The Teamsters Local 856 Union agrees that during the term of the Memorandum of Understandi ng there shall be no strike, no picketing, stoppages of work for any cause, no work slow-downs, interruption of the normal conduct of the City's business, or any other job action by any of its members. The City agrees that during the term of this Memorandum of Understanding it will not engage in any lockout of its employees.

B. The Union agrees to jointly cooperate with the City in increasing communications between the employees and the supervisors, and to improve performance and productivity. The City and the Union recognize the importance of employee involvement in the operations of the City.

ARTICLE XIII – DURATION

A. Those provisions not specifically modified by this Memorandum of Understanding shall remain in full force and effect for the term of this agreement.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

B. Except as specifically provided, the effective date of this Memorandum of Understanding is upon City Council adoption.

C. The term of this Memorandum of Unders tanding shall be from September 1, 202 52 through August 31, 20285.

ARTICLE XIV - SIGNATORIES
Signatories of this Memorandum of Understanding between the City of Daly City and Police Assistants.

REPRESENTATIVES FOR THE CITY OF
DALY CITY:

REPRESENTATIVES FOR TEAMSTERS
LOCAL 856 PUBLIC SAFETY POLICE
ASSISTANTS:

___________________________ ______ ____________________________ _______ Natalie Sakkal DATE Mark Leach DATE
Director of Human Resources Business Representative

___________________________ ______ ____________________________ _______ Donna WilliamsonTevon Edwards DATE Peter Finn, Secretary- Treasurer DATE
Chief Negotiator

___________________________ ________
Tim Nevin DATE
Director, Finance & Administrative Services

____________________________ _______
Abby Veeser DATE
Deputy Director, Finance & Administrative Services

____________________________ ________
Bonnie Woo DATE
Assistant to the Director of Human Resources

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

APPENDIX A - BIWEEKLY SALARY SCHEDULE D

TEAMSTERS 856 - POLICE ASSISTANTS

Effective September 13, 20252

Range Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 D 020 A Police Assistant I 2935.78 3082.57 3236.70 3398.53 3568.46 D 027 A Police Assistant II 3082.57 3236.70 3398.53 3568.46 3746.88 D 030 A Communit y Services Officer 3229.36 3390.83 3560. 37 3738.39 3925.31 D 030 A Senior Police Assistant 3229. 36 3390.83 3560.37 3738.39 3925.31

Longevity (20 years) 46.15 46.15 46.15 46.15 46.15
A = 40 hours/week

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

APPENDIX A-1 - BIWEEKLY SALARY SCHEDULE D

TEAMSTERS 856 - POLICE ASSISTANTS

Effective September 12, 20263

Range Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 D 020 A Police Assistant I 3038.53 3190.46 3349.98 3517.48 3693.36 D 027 A Police Assistant II 3190.46 3349.98 3517.48 3693.36 3878.02 D 030 A
Community Services
Officer 3342.39 3509.51 3684. 98 3869.23 4062.69
D 030 A Senior Police Assistant 3342. 39 3509.51 3684.98 3869.23 4062.69

Longevity (20 years) 46.15 46.15 46.15 46.15 46.15

A = 40 hours/week

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

APPENDIX A-2 - BIWEEKLY SALARY SCHEDULE D

TEAMSTERS 856 - POLICE ASSISTANTS

Effective September 114, 20274

Range Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 D 020 A Police Assistant I 3144.88 3302.13 3467.23 3640.59 3822.62 D 027 A Police Assistant II 3302.13 3467.23 3640.59 3822.62 4013.75 D 030 A Communit y Services Officer 3459.37 3632.34 3813. 96 4004.65 4204.89 D 030 A Senior Police Assistant 3459. 37 3632.34 3813.96 4004.65 4204.89

Longevity (20 years) 46.15 46.15 46.15 46.15 46.15

A = 40 hours/week

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

APPENDIX B - GRIEVANCES AND APPEALS
The following Rule XIV of Daly City's Rules and Regulations of the Classified Service is attached hereto for informational purposes only.

GRIEVANCES AND APPEALS
SECTION 1 - Any employee in the Classified Servic e shall have the right to appeal to the Board to determine the employee's status under the Position Classification Plan. Such an appeal shall be made in writing and shall set forth:
(a) Statement of the employee's Classification;
(b) Complete statement of duties performed by the employee for the past sixty (60) days and the length of time performing each of said duties;
(c) Statement of Classification claimed and reasons therefor.

SECTION 2 - Any employee in the Classified Servic e shall have the right to appeal to the Board relative to any situation connected with the employee's working conditions. Such an appeal shall be made in writing and shall set forth:
(a) Brief statement of exact condition or conditions as to which complaint is made; (b) Date condition or conditions were drawn to the attention of the Department Head; and (c) What action, if any, the Department took or any reason given for refusing to act.

SECTION 3 - Any employee in the Classified Servic e shall have the right to appeal to the Board any situation affecting the employee's employment status as prescribed under the Code, or amendments thereto, except as to the judgmental d ecision which must be reached by City Management regarding wh ether or not the probationary peri od was successfully passed. (Rev. 8/23/76 - Res. #76-189)
SECTION 4 - Alternate procedures to those here in provided for appeal may be utilized for resolving grievances of City, em ployee or employee organization, if such alternat e procedure is established by written Memorandum of Unders tanding by and between City and employee organizations. (Rev. 11/23/68 - Res. #4168)

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

APPENDIX C – DISCIPLINE
The following Rule XVIII Standards of Employment of the Rules and Regulations of the Classified Services is attached below for reference.

SECTION 10 Causes for discipline or discharge. Each of t he following constitutes cause for disciplinary action or discharge of an employee. (Rev 12/12/88-Res #88-298)

(a) Chronic absenteeism
(b) Discourteous treatment of the pub lic, supervisors, other employees I Failure to follow directions , policies and procedures (d) Improper political activity
I Inappropriate use of drugs and alcohol
(f) Incompetence
(g) Inexcusable neglect of duty
(h) Insubordination
(i) Loss of equipment or property
(j) Misuse of City time
(k) Misuse or damage of Ci ty equipment or property
(l) Sexual harassment
(m) Tardiness
(n) Untruthfulness
(o) Vehicle accident
(p) Violation of City and/or Department rules, regulations, policies and procedures (q) Violation of City, St ate and/or Federal Law(s)

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

APPENDIX D- DISCIPLINARY APPEAL PROCEDURE
The City’s disciplinary appeal procedure provides for an evidentiary hearing before the Personnel Board. The Board has the authority to make an advisory recommendation to the City Council.

The City Council has final authority.

A. Personnel Board Appeal Hearing

1. If, within the five (5) day appeal period, the employee involved does not file an appeal, unless good cause for failure is shown, the action of the City Manager or Department Head shall be considered final and binding.

2. If, within the five (5) day appeal period the employee files an appeal as specified in the Letter of Disciplinary Action by sending a letter to the City Manager and copy to the Director of Human Resources, the City Manager shall instruct the Director of Human Resources to request the Personnel Board set an appeal hearing.
a. At its next regular or special meeting, the Personnel Board shall set a hearing date which shall not be more than sixty (60) da ys from the date of the filing of the employee’s appeal. All interested parties shall be notified in writing of the date, time and place of the hearing at least ten (10) days prior to the date of the hearing. b. All hearings shall be open unless the employee requests a closed hearing. c. The Chairperson of the Personnel Board sh all issue subpoenas at the request of either the City or the a ppealing employee prior to the commencement of the hearing. Subpoenas must be served at least twenty-four (24) hours prior to the time attendance is compelled.
i. The hearing need not be conducted according to technical rules relating to evidence and witnesses, except hereinafter provided. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of the evidence over objection in civil actions.

Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by statute to be recognized at the hearing, and irrelevant and unduly repetitious evidence shall be excluded.
ii. The Chairperson of the Personnel Board shall rule on the admission or exclusion of evidence.
iii.

Each party shall have these rights:
a. To be represented by legal counsel or other person of the party’s choice b. To call and examine witnesses
c. To introduce evidence

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

d. To cross examine opposing witnesses on any matter relevant to the issues e. To impeach any witness regardless of which party first called the witness to testify f. To rebut the evidence against them

1. Oral evidence shall be taken only under Oath.

2. The hearing shall proceed in the following order unless the Chairperson, for special reason, otherwise directs:

3. The City shall be permitted to make an opening statement.

4. The employee shall be permitted to make an opening statement.

5. The City shall present its case in chief.

6. The employee may then present a defense and offer evidence in support.

7. The parties may then, in order respectively, offer rebutting evidence, unless the Chairperson of the Board for good reason permits them to offer evidence upon their original case

8. Closing arguments or briefs shall be permitted at the discretion of the Chairperson of the Personnel Board.

9. The Personnel Board shall determine the relevance, weight and credibility of testimony and evidence and shall base their findings on the preponderance of evidence.

10. The Personnel Board shall render its “Findings, Recommendations and Conclusions” as soon as possible after the conclusion of the hearing and no later than ten (10) days after conducting the hearing unless otherwise stipulated by the parties. The Board’s Decision shall set forth the recommendations as to each of the charges and the reasons therefore.

11. The Personnel Board may recommend to the City Council the sustaining or rejecting of any or all of the charges filed against the employee. The Board may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee.

B. City Council Appeal Hearing
The decision of the Personnel Board is adviso ry only. The proposed decision shall be filed with City Council and served on the employee. If a suspension, dismissal or demotion is not sustained by the City Council, they shall se t forth the recommende d effective date the employee is to be reinstated, which may be any time on or after the date the disciplinary action went into effect. If the Council does not sustain or modifies a suspension, they shall set forth the effective dates of the modification, whic h may be any time on or after the date the suspension went into effect.

The matter is set before City Council at the ne xt scheduled meeting that falls more than five days from the filing of the proposed decision. The City Council hearing shall be open unless the employee requests a closed hearing. The h earing shall consist of summary arguments by the City’s representative and the employee’s representative.

The City Council may recess to Closed Session to deliberate after the presentation of the summary arguments. The City Council announces in Public Session its determination; it may affirm, deny, or modify the Personnel Board’s recommendation. The determination of the City Council is final and binding.

Memorandum of Understanding
City of Daly City and Teamsters Local 856, Police Assistants September 1, 20252 through August 31, 20285

APPENDIX E - PROCESS FOR RECLASSIFICATIONS
(a) During November, December and January of each year, an employee may request once every thirty-six (36) months, a reevaluation of his/her job based on:
1) significant changes in job content and/or
2) significant discrepancies between job content and classification description, and/or responsibilities assigned.

The request must contain justification, and sh all be made to Human Resources, who will acknowledge the request within ten (10) day of receipt. (b) Depending on the nature of the request and the information submitted, the job analysis may include such techniques as:
1) Comparison of information supplied in the classification analysis to current job description
2) Salary and job description survey of other cities that may have matching classifications Interview with incumbent, immediate supervisor, and/or department head Physical desk/job audit
Analysis of similar classifications or positions in the City for equity purposes.

It is the City’s expectation that the job analysis will be completed within 90 days. If the City is unable to complete the job analysis within th is time frame, the Union will be contacted and provided an updated date of completion.

At the City’s discretion, an outsi de consultant may be retained to complete the reclassification analysis and make a recommendation to the City.
(c) If an employee does not agree with Human Resources’ draft recommendation, they can request a meeting with Human Resources within ten (10) days of receiving the determination.

The Human Resources Director will respond in writing with the final recommendation no later than ten (10) days after this meeting.
(d) The final recommendation will be communicated via a memo with any supporting documentation from Human Resources to the City Manager. All recommendations are subject to the City Manager’s approval. In addition to the City Manager’s approval, reclassifications may be subject to approval by the Personnel Board and/or City Council.

Employees in the reclassification process may ha ve a representative present at the meeting with Human Resources regarding the reclassification results.

City Council Meeting Agenda Report Item # _____

Meeting Date: January 26, 2026

Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Safety Inspectors

Recommended Action

That the City Council adopt by resolution the Memorandum of Understandings and salary schedules between the City of Daly City and Teamsters Local 856 Safety Inspectors.

Discussion

The management “meet and confer” representatives designated by the City Council of the City of Daly City have met and conferred in good faith with the representatives of Teamsters Local 856 Safety Inspectors and, as a result, have arrived at a Memorandum of Understanding concerning wages, hours and conditions of employment as follows:

Salary Increase:
• Effective the first full pay period of September 2025 - 3% salary increase • Effective the first full pay period of September 2026 - 3% salary increase • Effective the first full pay period of September 2027 - 3% salary increase

Equity Adjustment:
• Effective the first full pay period of September 2025 – 1% equity adjustment • Effective the first full pay period of September 2026 – 0.5% equity adjustment • Effective the first full pay period of September 2027 – 0.5% equity adjustment

Standby Pay:

Standby pay will increase from $8.50/hour to $10.50/hour.

Uniform Allowance:

Effective January 1, 2026, uniform allowance shall increase to $900/year, paid in equal installments.

Educational Incentive:

Employees will be eligible for Level D Series.

• Employees will receive one-percent (1%) of base pay for possession of a Bachelor’s Degree in a related field.

• Employees will receive two-percent (2%) of base pay for possession of a Master’s Degree in a related field.

City Council Agenda Report
Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and Teamsters Local 856 Safety Inspectors
Meeting Date: January 26, 2026

Bilingual Pay:

Effective January 1, 2026, bilingual Pay will increase to $150.00 per month. The City will determine the number of positions, the shifts, the eligible languages and the standards and procedures for certification of such pay.

Vision Reimbursement Program:

• Effective January 1, 2026, the above maximum calendar reimbursement for frames and lenses will increase to three hundred dollars ($300.00).
• Effective January 1, 2027, the above maximum calendar reimbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00). • Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

Fiscal Impact

Staff recommends appropriating $63,888 for FY 2026 and $106,222 for FY 2027 utilizing the General Fund – Fund Balance for estimated increase in costs due to the contracts.

Summary/Conclusion

Staff requests that the City Council adopt the Memorandum of Understanding between the City of Daly City and Teamsters Local 856 Safety Inspectors for the period of August 1, 2025, through August 31, 2028.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Natalie Sakkal
Director of Human Resources

Attachment: Tracked Changes Teamsters Local 856 Safety Inspectors MOU

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MEMORANDUM OF UNDERSTANDING

Teamsters Local 856, IBT

SAFETY INSPECTORS UNIT

August 1, 20252 through July August 31, 20285

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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Table of Contents
MEMORANDUM OF UNDERSTANDING ..................................................................................3 ARTICLE 1 – RECOGNITION ......................................................................................................3 ARTICLE 2 – NO DISCRIMINATION ..........................................................................................3 ARTICLE 3 – DUES DEDUCTION ...............................................................................................4 ARTICLE 4 – ACCESS TO PERSONNEL FILES ........................................................................5 ARTICLE 5 – SALARIES ...............................................................................................................5 ARTICLE 6 - BENEFITS ..............................................................................................................56 ARTICLE 7 - HOLIDAYS ............................................................................................................88 ARTICLE 8 – RETIREMENT ........................................................................................................8 ARTICLE 9 – HOURS AND OVERTIME ...................................................................................10 ARTICLE 10 – LEAVES ..........................................................................................................1212 ARTICLE 11 – ADVANCE NOTICE ......................................................................................1313 ARTICLE 12 – EDUCATIONAL INCENTIVE PROGRAM ..................................................1313 ARTICLE 13 – GRIEVANCE PROCEDURE ..........................................................................1515 ARTICLE 14 – BARGAINING UNIT REPRESENTATIVE ..................................................1717 ARTICLE 15 – SEPARABILITY OF PROVISIONS ...............................................................1718 ARTICLE 16 – FULL UNDERSTANDING ............................................................................1818 ARTICLE 17 - MISCELLANEOUS PROVISIONS ................................................................1818 ARTICLE 18 – DURATION .....................................................................................................1919 ARTICLE 19 - SIGNATORIES ...............................................................................................2020 APPENDIX A SAFETY INSPECTORS MONTHLY SALARY SCHEDULE ...........................21 APPENDIX A-1 SAFETY INSPECTORS MONTHLY SALARY SCHEDULE........................22 APPENDIX A-2 SAFETY INSPECTORS MONTHLY SALARY SCHEDULE........................23 APPENDIX B – DISCIPLINE ......................................................................................................24 APPENDIX C - DISCIPLINARY APPEAL PROCEDURE ........................................................25

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF DALY CITY
and
TEAMSTERS UNION LOCAL 856—SAFETY INSPECTORS
August 1, 20252 through July August 31, 20285

The adjustment to wages, hours and conditions of employment that are set forth in this Memorandum have been discussed by and between th e staff representatives of the City of Daly City (hereinafter called "“CityITY”"), and the representatives of the Teamsters Union Local 856— Safety Inspectors (hereinafter called Union) and shall apply to all the employees in the CITY City working in the classification of Safety Inspector.

The adjustments to wages, hours and conditions of employment that ar e set forth in this Memorandum have been discussed in good faith and agreed upon between the staff representatives of the City and the Bargaining Unit. Bargaining Unit agree that its members have accepted and ratified all of the adjustments set forth herein, a nd the staff representatives of the City agree to recommend acceptance and adoption by Resolution of the City Council to the effect that all adjustments as set forth herein be adopted in full by the City Council in the manner and procedures prescribed by law. The adjustme nts to salaries and fringe benefits listed herein are acceptable to both parties as attested to by the duly designated representatives who are signatories hereto.

ARTICLE 1 – RECOGNITION

Union is recognized as exclusive representative s pursuant to the City of Daly City Employer- Employee Relations Resolution for all employees assigned to the classification of Safety Inspector.

ARTICLE 2 – NO DISCRIMINATION

There shall be no discriminati on by the City, recognized empl oyee organizations, or anyone employed by the City for or against any empl oyee or applicant for em ployment, promotion, demotion or discharge, because of any legally protected classification including but not limited to classifications such as race, religious creed, co lor, ancestry, national origin, gender or sexual orientation, marital status, political opinions or affiliations, or lawful employee union organization activities; and to the extent prohibited by appli cable State and Federal law, there shall be no discrimination because of age. There shall be no discrimination against any disabled person solely because of such disability unless that disability prevents the person from performing the essential duties established for the position for which he/she is applying.

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City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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ARTICLE 3 – DUES DEDUCTION

The Union shall be entitled to have authorized dues and other authorized deductions of its members deducted from their paychecks in accordance with the procedures set forth herein.

Payroll deductions and authorized deductions shall be made for each individual for whom the City has received a request in writing from the Union for the payroll deduction to be made. The Union shall notify the city of all elec ted and revoked dues in a timely manner. The City shall process each change in deductions in the first applicable pay period following receipt of the Unions’ notification.

If the City receives any questions from employees regarding union membership or dues, the City shall direct the employee to the Union and shall not provide advice on these matters.

Teamsters D.R.I.V.E. Voluntary Contributions
The City agrees to deduct vol untary contributions to Teamst ers DRIVE (Democrat, Republican, Independent, Voter Education) from the pay of those employees who request, in writing, on a form supplied by the Union and submitted to the City, that such deductions be made. The effective date of withholdings, time of remitting withholding to the Union, and all procedural matters shall be as mutually acceptable to the Union and the City, pr ovided that the City's payroll system and its operations are not thereby disrupted.

New Employees

Within thirty (30) calendar days of hiring, the City shall provid e the name, job ti tle, department, work location and telephone number, personal cellular telephone number, and personal email address on file of the new employee in this bargaining unit to the Union.

The City shall provide Union written notice of new employee orientations for employees new to this bargaining unit at least ten (10) business days prior to the event. Union representatives shall be permitted to make a presentati on of up to thirty (30) minutes, and present written materials, during a portion of the orientation for which attendance is mandatory. No representative of management shall be present during the Union’s presentation. The City shall provide an adequate and reasonable amount of release time for designated officers and representatives of the Union to participate in the new employee orientations.

The Union shall indemnify, defend , and save the City of Daly City, its officers, agents and employees harmless against any an d all claims, demands, suits, or ders, or judgments, or other forms of liability that arise out of or by reason of this Article or action taken or not taken by the City under this Article, and shall promptly reimburse the City for reasonable legal fees and costs incurred by the City in responding to or defending against any claims, disputes or challenges. This

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August 1, 20252 through July August 31, 20285

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includes, but is not limited to, the City's attorney fees and costs; to and including the reserved right of the City to select counsel of its own choice.

ARTICLE 4 – ACCESS TO PERSONNEL FILES

An employee or the employee’s designated repres entative shall have ac cess to the employee’s personnel file upon written request to the Human Resources Department. The employee or the employee’s representative shall schedule an appointment with the Human Resources Department to review the personnel file. Employees will be given copies of an y written reprimand or performance evaluation placed in their personnel file. Within a reasonable period of time from the receipt by the employee of a written reprimand or performance evaluation, the employee may respond in writing. The written response will be placed in the employee’s personnel file.

ARTICLE 5 – SALARIES
A. Cost of Living AdjustmentsSalary Increases
A.1. Effective in the first full pay period of September 2025, a three percent (3%) salary increase shall be applied to the salary scheduleEffective August 6, 2022, the parties agree to a four percent (4%) cost of living increase. (See Appendix A).

B.2. Effective in the first full pay period of September 2026, a three percent (3%) salary increase shall be applied to the salary scheduleEffective August 5, 2023, the parties agree to a four percent (4%) cost of living increase. (See Appendix A-1).

3. Effective in the first full pay period of September 2027, a three percent (3%) salary increase shall be applied to the salary scheduleEffective August 3, 2024, the parties agree to a four percent (4%) cost of living increase. (See Appendix A-2).

B. Equity Adjustments

1. Effective the first full pay period of September 2025, a one pe rcent (1%) salary increase shall be applied to the salary schedule.

2. Effective the first full pay period of Se ptember 2026, a one-half pe rcent (0.5%) salary increase shall be applied to the salary schedule.

C.3. Effective the first full pay period of September 2027, a one percent (0.5%) salary increase shall be applied to the salary schedule.

The above Equity Adjustments will be additiv e to and not compounding with the Cost of Living increases.

ARTICLE 6 - BENEFITS

The City will contribute toward the City s ponsored benefit plans during the life of this Memorandum of Understanding as follows:

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City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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A. Medical Insurance Benefits
The City will contract with the Teamsters Un ion Local 856 Health and Welfare Packages for the purpose of providing employees with medical insurance benefits.

B. Cafeteria Plan Allowance
The City will maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing empl oyees with access to various he alth and welfare benefits.

Benefits available through the Cafeteria Plan include, but are not limited to, medical insurance, flexible spending accounts for out-of-pocket me dical expenses and dependent care, dental insurance and life insurance benefits. The City agrees to provide a Cafeteria Plan Allowance to all employees eligible to participate in C ity-sponsored health bene fits under Section A of this Article. Any tax consequences resulting from City contributions to the Cafeteria Plan are the sole responsibility of the employee.

The City will provide each eligible active employee with a monthly Cafeteria Plan Allowance for the purpose of participation in Section 125 Cafeteria Flexible Benefits Health and Welfare Plan. The City’s monthly contribution will be as follows:

1. In the event that health benefits are provided through a composite rate the City’s monthly contribution amount shall be the Teamsters Union Local 856 Health and Welfare Packages composite rate or an amount equivalent to 95% of the PERS Kaiser Bay Area family rate, whichever is lower.

2. In the event that health benefits are broke n down by coverage levels the City’s monthly contribution shall be equivalent to the Teamst ers rate for each level of coverage or the PERS Kaiser Bay area rate for each level of coverage at 100% for employee only coverage and 95% for employee +1 or employee + family, whichever is lower.

From the Cafeteria Plan Allowance, employees must purchase the following qualified benefits:
• City-sponsored dental/orthodontic insurance (if not selecting the Teamsters option) • City-sponsored life insurance ($50,000)

C. Cash in lieu

1. Eligibility: Employees who opt out of the medical plan and receive cash must provide the following: (1) proof that the employee and all individuals for whom the employee intends to claim a personal exempti on deduction (“tax fam ily”), have or will have minimum essential coverage through anot her source (other than covera ge in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out

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City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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arrangement applies (“opt out period”); and (2) the employee must sign an attestation that the employee and his/her tax fam ily have or will have such minimum essential coverage for the opt out period. An employee must provi de the attestation every plan year at open enrollment or within 30 days after the start of the plan year. The opt-out payment cannot be made and the City will not in fact make payment if the City knows that the employee or tax family member doesn’t have such alternat ive coverage, or if th e conditions in this paragraph are not otherwise satisfied. Employees and kno wn dependents who do not provide the annual information required will be enrolled in the lowest cost health plan.

2. Cash in lieu is $500 per month.

D. Domestic partners will be afforded in accordance with Teamsters 856 Trust Fund plan rules and regulations. (Please see the providers’ plan description for details.) The Teamsters 856 Trust Fund will determine eligibility for those employees who elect to receive benefits through the Teamsters 856 Trust Fund.

E. Vision Reimbursement Plan: Employees and thei r dependents are eligible for a maximum reimbursement of $200 per year for frames or lenses. The reimb ursement may be requested every 12 months.

1. Effective January 1, 2026: the above maximum calendar re imbursement for frames and lenses will increase to three hundred dollars ($300.00).

2. Effective January 1, 2027, th e above maximum calendar re imbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00).

3. Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

E.

F. Long Term Disability: Employees pay $29.50 in Fire Dues for long term disability.

G. Vacation:

Employees accrue paid vacation as follows:

Completed Years of Employment
Annual Vacation
Accrual
1 through 4 13 da ys
5 through 12 18 da ys
13 through 20 23 da ys
21 or More 28 da ys

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City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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ARTICLE 7 - HOLIDAYS

A. Affected regular full-time employees shall be entitled to take the following observed holidays at full pay, not to exceed eight (8) hours for any one (1) day, provided they are in a paid status on both their regularly scheduled workdays immediately preceding and following the holiday.

New Year’s Da
y Veteran’s Da y
Martin Luther King, Jr. Birthday Thanks giving Day
President’'s Day Day after Thanksgiving
Memorial Day Christmas Eve (one-half da y)
Juneteenth Christmas Da y
Independence Day New Year’s Eve (one-half da y)
Labor Day

B. Affected employees shall receive the one-half day for Christmas Eve and New Year’'s Eve on the last regularly scheduled workday preceding the day observed as a Legal holiday for Christmas Day and New Year’'s Day.

C. If a holiday falls on a Sunday, such holiday will be observed on the Monday directly following the holiday. If a holiday falls on a Saturda y, such holiday shall be observed on the Friday directly preceding the holiday. In the event that any of the holidays specified in Article 5 occur while an employee is on an authorized vacation, the holiday will not be charged to vacation.

If an employee becomes sick during his/her vaca tion, such employee shall charge the period of illness against sick leave, provided that a doctor’s certificate or personal affidavit is submitted prior to such charge against sick leave.

ARTICLE 8 – RETIREMENT

The City contracts with the California Public Employees’ Retirement System ( “CalPERS”) to provide retirement benefits as follows:

A. Classic Employees: For classic employees as defined by CalPERS and California Public Employees’ Pension Reform Act of 2013 (PEPRA) , the City’s contract with CalPERS provides the following:
• Section 21363.1 –- 3% at age 55 benefit formula
• Section 20024.2 – One Year Final Compensation
• Section 21574 – 1959 Fourth Level Survivor
• Section 21548 –- Pre-Retirement Optional Settlement 2W Death Benefit • Section 21024 –- Military Service Credit as Public Service • Section 21551 – Pre Retirement Death Benefits to continue after remarriage of survivor
• Section 21620 - $500 Retired Death Benefit

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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B. New Employees: For new members hired on or after January 1, 2013 as defined by CalPERS and PEPRA, the City’s contract with CalPERS provides the following:
• Section 21363.1 – 2.75% at Age 57 Benefit Formula
• Section 20037 –- Three-Year Average Final Compensation • Section 21329 –- Annual Cost-of-Living Allowance Increase (up to 2%) • Section 21548 –- Pre-Retirement Optional Settlement 2 Death Benefits • Section 21024 –- Military Service Credit as Public Service • Section 21551 – Pre Retirement Death Benefits to continue after remarriage of survivor • Section 21620 –- $500 Retired Death Benefit

Beginning on August 5, 2015, the bargaining uni t employee contribution to the employer CalPERS contribution rate shall adjust to 5.25% for bargaining unit.

C. Cost Sharing - Bargaining unit employees shall pay an additional point seven five percent (0.75%) towards the employer share of the CalPERS contribution.

D. Retiree Medical
a. Employees hired prior to November 14, 2022
The City’s contribution to retiree health fo r qualifying annuitants will be increased annually as required under PEMHCA. The C ity’s monthly contribution to qualifying annuitants will be:

EE up to $769.50
EE + 1 up to $721.54
Family up to $948.13

b. Employees hired on or after November 14, 2022

The retiree medical benefit contribution from the City for bargaining unit employees hired on after November 14, 2022, shall be limited to the amount provided as the PEMHCA minimum under Government Code section 22892.

For employees with the PEMHCA minimum retiree benefit, the City shall contribute $50 per month to the City’sICMA contracted retiree health savings account.

All bargaining unit employees with less than 5 years of service sha ll contribute $50 per month to the City's contracted Retiree Health Savings account effective January 2026.

Employees with 5 years or mo re of service shall contribut e $100 per month to the City's contracted Retiree Health Savings account effective January 2026 . A retiring employee (defined as an employee who is retiring from th e City and is taking a service or disability

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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retirement from PERS) shal l place 100% of the cash va lue of their vacation and compensatory time off into the City's contracted Retiree Health Savings Account. *Note-Article 10-Leaves, Section A. Sick Leave: Employees hired on or after July 1, 2020, shall not be eligible to cash out sick leave upon separation from employment.

E. Section IRC 414(h)
City will continue to make available the Sect ion IRC 414(h) option to affected members.

Eligibility to participate and th e irrevocable conditions of one- time-only election continue to be pursuant to the regulations as set forth by the Internal Revenue Service.

F. The City shall continue to make available the Section IRC 414 (h) 2 option to affected members. Eligibility to participate and the irrevocable conditions of a one-time only election continue pursuant to the regulations as set forth by the Internal Revenue Service.

ARTICLE 9 – HOURS AND OVERTIME

A. Work Week/ Work Day: The regular workweek shall consist of forty (40) hours and the regular workday shall consist of either eight (8 ) hours or nine (9) hours or ten (10) hours or twelve (12) hours. The Department has the righ t to change work schedules during the term of this Agreement following completion of any required meet and confer obligations.

B. Alternative Work Schedule: The City agrees to implement, within 30 days of adoption of the MOU, a 4/10 Alternate Work Week Pilot for up to three (3) years. The pilot may be extended by the City for an additional specific period.

C. Should the 4/10 schedule be rescinded, the Safety Inspectors’ schedule will return to the 9/80 schedule.

D. Overtime: Employees working in excess of their regu lar work day shall be granted overtime pay or compensating time off for the time worked at the discretion of the Department Head, at time and one-half (1.5X) of the employee ’'s base rate of pay. Employees subject to the requirements of the FLSA who work in excess of their scheduled 40-hour workweek shall be granted overtime pay at time and one-half (1.5X) of the employee’s rate of pay.

E. Compensatory Time: Employees may accrue a compensa tory time off balance up to a maximum of eighty (80) hours per calendar year.

F. Call Back: If an employ ee is called back to work, he or she shall, upon reporting, receive a minimum of two (2) hours work, or if two (2) hours work is not furnished, a minimum of two (2) hours pay at time and one-half (1.5X) of the em ployee's base rate of pay. This provision does not apply to instances in which the employee is called to report before his or her regular starting time and has worked from the time he or she reports to his regular starting time.

G. Standby Program:

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City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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1. Standby coverage and therefore Standby dut y is an essential function of the Fire Safety Inspector classification and a condition of employment.

2. Prior to January 1 of each calendar year, all Fire Safety Inspectors, in accordance with seniority, will pick a week to begin their stand by assignment as follows:

The senior Fire Safety Inspector will choose either the first week, second week or third week of January to begin his/he r standby rotation. The next Fire Safety Inspector according to seniority will choose one of the two remaining weeks to begin his/her rotation etc. Each Fire Safety Inspector is completely responsible for coverage of their assigned weeks throughout the year and must find a trade partne r if they desire coverage for an absence.

3. Fire Safety Inspectors must obtain prior approval from their supervisor before any change in standby rotation or coverage is allowed. In consideration of the current minimum staffing level, Fire Safety Inspectors may request time off during their assigned rotation. The Fire Chief or designee shall approve all such requests. Requests for time off during an assigned rotation shall not constitute excessive absenteeism and shall not result in disciplinary action.

4. Inspectors shall be compensated at $ 108.50 per hour while assigned to their standby rotation. St andby hours are as follows:

Monday through Friday: 5:30p.m. to 7:00a.m.

Saturday through Sunday: 7:00a.m. to Monday at 7:00 a.m.

City Holidays: 7:00 a.m. to 7:00 a.m. the day after the City Holiday.

When a Fire Safety Inspector is called into work, he/she will receive a minimum of two hours overtime compensation. Once an Inspector is called and receiving overtime compensation, he/she will not be e ligible for the standby pay during that time period.

5. The Parties acknowledge that Standby pay is not pensionable special compensation.

H. Furloughs: The City has th e right to negotiate furloughs during the term of this Agreement.

The City would be required to provide noti ce and an opportunity to negotiate furloughs.

Furloughs would be implemented either by agreement between the parties or upon completion of negotiations and the impasse procedures.

I. City Holiday Closure: The City reserves the right to close City Hall operations from December 24th through December 31st. During City Hall closure, employees will be required to use available accrued vacation, comp time, floating holidays or othe r applicable leave (not sick leave) or take unpaid time if accrued leave is not available.

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City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

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ARTICLE 10 – LEAVES

The provision Rule XVII Leaves of the Rules and Regulations of the Classified Service apply to employees in the unit.

A. Sick Leave
Sick leave shall not be considered as a right which may be used at the employee’'s discretion, but a privilege which shall be allowed only in ca se of necessity and actua l illness, disability and as required by law. Full-time employees shall accrue sick leave at the rate of twelve (12) working days* (ninety-six (96) hours) per year. For classi fications represented by this bargaining unit, there is no maximum accrual.

Any bargaining unit employee having accumulated, unused sick leave credit who is separated from employment by retiring as set forth in the Public Employees’ Retirement System contract or, for reason of death or abolishment of posi tion, shall be paid fifty percent (50%) of said employee’s daily rate of pay for each day of accumulated and unused sick leave as of the date of said retirement, death, or abolishment of position. However, the maximum pay out of 50% of accumulated, unused sick leav e at the time of retirement, death or abolishment of position remains at a cash value not to exceed one hundred (100) days (eight hu ndred (800) hours) of pay.

Employees hired on or after July 1, 2020, shall not be el igible to cash out sick leave upon separation from employment.

* For purposes of this section, a workday is defined as eight (8) hours.

B. Bereavement Leave
Bereavement Leave may be taken in accordance with the City’s Bereavement Leave Policy.

A maximum of five (5) working days * of paid bereavement leave may be taken for deaths occurring in the immediate famil y. Payment for time off will be subject to formal request to the City Manager by the employee. The City Manager may request documentation in support of such leave consistent with California Government Code 12945.7. Bereavement Leave shall not be accumulated and is not a part of the sick leave benefit. For purposes of this section, immediate family shall be defined as: spous e or a child, parent, sibling, grandparent, grandchild, domestic partner, and parent-in-law.
*For purposes of this section, a working day sh all be defined as the number of non-overtime hours in the day that the employee is scheduled to work.

C. Personal Leave
City agrees to provide affected members two hours of personal leave to be taken at any time during the calendar year that is agreeable to the employee and the employee's department head.

Said two hours personal leave shall be taken e ach year pursuant to the above conditions and shall not accrue from year to year.

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August 1, 20252 through July August 31, 20285

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ARTICLE 11 – ADVANCE NOTICE

Except in cases of emergency, the Union shall be given reasonable written notice of any proposed ordinance, resolution or change to the Rules and Regulations of the Classified Service directly relating to matters within the scope of representation. When requested, the Union shall be afforded the opportunity to meet and confer with the City on such matters.

ARTICLE 12 –- EDUCATIONAL INCENTIVE PROGRAM

A. Effective March 1, 1992, City eliminated the educational/longevity incentive program in effect on February 29, 1992, for affected classifications and establish an The City offers an educational incentive program as follows:

Level A I Series
For possession of any or all of the following, affected employee shall receive five percent (5%) on base pay.

OPTION 1: Fire Inspector 1 (SFT)
OPTION 2: Fire Investigator (SFT)
OPTION 3: Subject to the approval of the Fire Chief, 120 hours of approved course work offered by NFPA, ICBO, etc., to include any three of the following 40-hour curriculums:

Code Enforcement
Plan/Check Review
Building Construction
Fire Inspection Practices
Flammable Liquids/Gases
Uniform Fire Code
Option 3 requires the following:

Minimum two (2) years as full-time paid Firefighter and one (1) year as Fire Prevention Officer.

OR
Minimum three (3) years as paid Fire Prevention Officer.

Level B II Series

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August 1, 20252 through July August 31, 20285

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For possession of any one or all of the following, affected employee shall receive two percent (2%) on base pay.

OPTION 1: Fire Inspector 2 (SFT)
OPTION 2: Subject to the approval of the Fire Chief, 120 hours of course work (in addition to those required for Level I Series) offered by NFPA, ICBO, etc., to include any three of the following 40-hour curriculums:
- Fire Protection Systems
- Hazardous Material Occupancies
Titles 19 & 24, California Administrative Code (Public Safety and State Building Standards)
- Hydraulic Sprinkler Calculations
This option (2) requires one additional year of experience as a full-time paid Fire Prevention Officer.

B. Affected employees who, as of February 29, 1992, were receiving educational/longevity pay could continue, effective March 1, 1992 to receive educational/longevity compensation at the same rate that was in effect on February 29, 1992, until such time that they qualified for educational incentive pay under the terms of the new educational incentive program described above, at which time the rate of compensa tion under the new educa tional incentive program replaced the rate in effect on February 29, 1992.

Level C III Series:

For possession of any or all of the following, affected employees shal l receive one percent (1%) on base pay.

OPTION 1: Plan Examiner (SFT)
OPTION 2: Subject to the approval of the Fire Chief, 120 hours of course work (in addition to those required to Level 2 series) o ffered by NFPA, ICBO, etc. to include any two of the following 40-hour curriculums:
- Hydraulic Sprinkler Calculations
- Plan Checking
- Contemporary Management Issues and Concepts
This option (2) requires one additional year of experience as a full-time paid Fire Prevention Officer.

Level IVD Series

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City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
Possession of a BA/BS degree in a related fi eld, affected employees shall receive one- percent (1%) of base pay.

Possession of a Master's degree in a related field, affected employe es shall receive two- percent (2%) of base pay.

Level D Series incentives are not cumulative and the maximum educational incentive is 2% of base pay.

ARTICLE 13 – GRIEVANCE PROCEDURE

DEFINITION
A grievance is defined as a condition that exists as a result of an unsatisfactory adjustment or failure to adjust a claim or dispute by an empl oyee or employees relative to the application or interpretation of the Rules and Regulations of the Classified Service, Departmental Rules and Regulations, Memorandum of Unde rstanding, established procedures and policies of the City or Department (whether written or oral) of a dispute, disagreement or omissions as to the facts pertaining to a disciplinary matter.

The following shall not be considered a grievanc e: The means, manner, method or merit of any service or activity provided by law or executive order, collective i ssues of salary, fringe benefits or working conditions subject to meeting and conferring; and disciplinary action.

No matter shall be considered a grievance or complaint until it is first taken up verbally by the employee and/or a representative of his/her choice with his/her immediate supervisor. (In those situations where the nature of the problem invo lves the immediate supervisor or higher, the problem will be discussed with the next higher rank.)
All grievances shall proceed in accordance with the following:

Step A: An employee who believes that he/she has a grievance shall take up such grievance with his/her immediate supervisor within 24 calendar days of the occurrence of knowledge of the alleged grievance. If the employee fails to do so within such time limit, the alleged grievance may not thereafter be taken up.

The supervisor with whom the problem is di scussed shall give a re ply within five (5) calendar days. If the aggrieve d is not satisfied with th e decision, the following step will be taken.

Step B: The aggrieved shall submit a copy of the written grievance al ong with a copy of the written decision and/or other pertinent facts, to the next higher level of command (Fire Chief). The Chief of the Department will render a written d ecision on the grievance within five (5) calendar days. If at this point the aggrieved feels that the grievance has not been resolved, the aggrieved may appeal the decision of the chief to the next higher

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
authority as outlined in the Rules and Regulations of the Classified Service and/or Memorandum of Understanding.

Step C: Within seven (7) calendar days after r eceipt of the grievance by the next higher authority (City Manager), there shall be a meeting between the aggrieved employee and/or the Union Business Representa tive and the City Manager or his/her representative, in an attempt to settle the matter. Within five (5) working days following such meeting, the City Manager shall make a written reply to the grievant.

Step D: If the grievant has not been settled by the procedure described, the grievant may within seven (7) calendar days be submitted to the Daly City Personnel Board, if eligible under the Rules and Regulations of the Classified Service then in effect and in accordance with Step E below, or to advisory arbitrat ion in accordance with Step F below. The grievant has the right to select the Personne l Board process or advisory arbitration for the appeal, but may not do both.

Step E: The City Council shal l act upon the recommendation of the Personnel Board within thirty (30) calendar days following the date of their receipt of the recommendation.

Step F: Advisory Arbitration. If the grievant is dissatisfied with the decision of the City Manager in Step D, the grievant may appeal the grievance to advisory arbitration.

The request for advisory arbitration must be given in writing to the City Manager by the grievant within ten (10) working days from the date of the Step D answer.

An arbitrator may be se lected by mutual agreemen t between the grievant’s representative and the City’s representative. Should the representatives fail to mutually agree on an arbitrator, they shall make a joint request to the California State Conciliation and Mediation Service, the Amer ican Arbitration Association, or some other source mutually agreed upon, for a list of five (5) qualified arbitrators. The parties shall each strike two (2) names from the list and the remaining person shall be accepted as the arbitrator. The first party to st rike shall be determined by the flip of a coin.

The jurisdiction and authority of the arbi trator so selected and the opinions the arbitrator expresses will be confined excl usively to the interpretation of the express provision or provisions of the MOU or Rules and Regulations of the Classified Service at issue between the parties. The arbitrator shall have no authorit y to add to, subtract from, alter, amend, or modify any provisions of the MOU or Rules and Regulations of the Classified Service or impose any limitations or obligations not specifically provided for under the terms of the MOU or Rules and Regulations of the Classified Service.

The arbitrator shall be w ithout power or authority to recommend any decision that would require the City or the administration to do an act prohibited by law.

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
The fees of the arbitrator will be born equa lly by the employee or employee association and the City. However, the City will re imburse up to $15,000 towards the Teamsters Local 856 Safety Inspectors Un it cost of arbitration in cas es where the City Council goes against the advisory recommendation to the detriment of the employee or Association.

ARTICLE 14 – BARGAINING UNIT REPRESENTATIVE

Reasonable access to employee work locations shall be granted officers of the Union and their officially designated representatives for the purpose of processing grievances or contacting members of the Union concerning bu siness within the scope of repr esentation. Such officers or representatives shall not enter any work location without the c onsent of the Department Head or his/her designated representative. Access shall be restricted so as not to interfere with the normal operations of the Department or with the established safety or security requirements.

Solicitation of membership and activities concerne d with the internal management of the Union, such as collecting dues, holding membership meetings, campaigning for office, conducting elections and distributing literature, shall not be conducted during working hours.

City employees, the Union, or their officially designated Union representatives may, with the prior approval of the Department Head or his or her designated representative, be granted the use of City facilities during non-work hours for meetings of City employees provided space is available.

The use of equipment other than items normally used in the conduct of business meetings, such as desks, chairs, ashtrays and blackboards, is stric tly prohibited, the presen ce of such equipment in approved City facilities notwithstanding.

The Union may use portions of a Department bulletin board under the following conditions:
(1) All materials must be dated and must identify the Union that published them. (2) Unless special arrangements are made, materials posted will be removed thirty-one (31) days after the publication date.
(3) (The Department reserves the right to determine where a bull etin board shall be placed and what portion of it is to be allocated to Safety Inspector's materials. (4) If the Union does not abide by these rules, it will forfeit its right to have materials posted on a Department bulletin board.

ARTICLE 15 – SEPARABILITY OF PROVISIONS

Should any section, clause, or provision of this Memorandum of Understanding be declared illegal by final judgment of a court of competent jurisd iction, such invalidation of such section, clause, or provisions shall not invalidate the remaining portions hereof, and such remaining portions shall

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
remain in full force and effect for the duration of this Memorandum of Understanding. In the event of such invalidation, the parties agree to meet and confer concerning substitute provisions for the provisions rendered or declared illegal.

ARTICLE 16 – FULL UNDERSTANDING

This Memorandum of Understanding constitutes a full and complete agreement by the parties and contains all of the matters upon which the parties reached agreement.

There will be no alteration or modification of any provision contained in this Memorandum without the written consent of all parties hereto. Existing pract ices and/or benefits which are not referenced in this Memorandum and which are s ubject to the meet and confer process shall continue without change unless modified subject to the meet and confer process.

ARTICLE 17 - MISCELLANEOUS PROVISIONS

A. Labor/Management Committee
The City and the Union will continue to m eet and confer on noneconomic changes to the Personnel Rules that are within the scope of ba rgaining. Changes to subjects that are within the scope of bargaining will not be made until the meet and confer process is completed.

B. Mandatory Direct Deposit: All employees will participate in mandatory direct deposit for payroll (including all compensation and reimbursements).

C. Uniform Allowance: The City provides an annual uniform allowance of $750.00, paid in equal installments of $28.85 per pay period. Effective January 1, 2026, th e annual allowance shall increase to $900 and be paid in equa l installments of $34.61 per pay period. To the extent legally permissible, the City shall report uniform allowance to CalPERS for Classic members pursuant to Title 2 CCR, Section 571(a)(5) as uniform allowance.

D. Bilingual Pay: The City agrees to provide one hundred dollars ($100.00) per month bilingual pay to those employees who become certified and eligible for such pay and who are routinely and consistently assigned to positions requiring communication skills in languages other than English. The City will determine the number of positions, the shifts, the eligible languages, and the standards and procedures for certification for such pay. Effective January 1, 2026, City will increase bilingual pay from $100 per month to $150 per month. To the extent legally permissible, the City shall report bilingual pay to CalPERS pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) as Bilingual Premium.

The following languages are approved for bilingual pay compensation: Spanish, Tagalog, D. Mandarin, Cantonese, Korean, Vietnamese, and American Sign Language.

E. Discipline: See Appendix B.

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
F. Classification/Compensation Survey (provision sunsets June 30, 2028): The City will initiate a market compensation survey during the second year of this Agreement (September 1, 2026- August 31, 2027). At the Union’s request, the parties will discuss the market compensation survey during a labor/management committee meeting prior to completion of the survey.

Once complete, the City will share the results of the survey with the Union.

E.

ARTICLE 18 – DURATION

This agreement will be in effect from August 1, 20252 until July 31, 20285. Except as specifically provided, the effective date of this Memorandum of Understanding is upon ratification by both parties.

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025

ARTICLE 19 - SIGNATORIES

Signatories to this Memorandum of Understanding between the City of Daly City and Teamsters Local 856-Safety Inspectors.

REPRESENTATIVES FOR THE CITY OF
DALY CITY:

REPRESENTATIVES FOR TEAMSTERS
LOCAL-856 SAFETY INSPECTORS:

___________________________ ______ ____________________________ _______ Natalie Sakkal DATE Mark Leach DATE
Director of Human Resources Business Representative

___________________________ ______ ____________________________ _______ Donna WilliamsonTevon Edwards DATE Peter Finn, Secretary- Treasurer DATE
Chief Negotiator

___________________________ ______
Tim Nevin DATE
Director, Finance &
Administrative Services

_________________________ ______
Abby Veeser DATE
Deputy Director, Finance &
Administrative Services

___________________________ ______
Bonnie Woo DATE
Assistant to the Director of Human Resources

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025

APPENDIX A SAFETY INSPECTORS MONTHLY SALARY SCHEDULE

Effective August 2, 2025
Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
268
A - Safet y Inspector I 10816.60 11357.43 11925.30

Level I Series (5%) 540.83 567.87 596.27

Level II Series (2.0%) 216.33 227.15 238.51

Level III Series (1.0%) 108.17 113.57 119.25

Level IV Series BA
(1.0%) 108.17 113.57 119.25
or
Level IV Series MA
(2.0%) 216.33 227.15 238.51

270
A - Safet y Inspector II 11358.40 11926.32 12522.63 13148.77 13806.20

Level I Series (5%) 567.92 596.32 626.13 657.44 690.31

Level II Series (2.0%) 227.17 238.53 250.45 262.98 276.12

Level III Series (1.0%) 113.58 119.26 125.23 131.49 138.06

Level IV Series BA
(1.0%) 113.58 119.26 125.23 131.49 138.06
or

Level IV Series MA
(2.0%) 227.17 238.53 250.45 262.98 276.12

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
APPENDIX A-1 SAFETY INSPECTORS MONTHLY SALARY SCHEDULE

Effective August 15, 20263
Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
268
A - Safet y Inspector I 11195.18 11754.94 12342.69

Level I Series (5%) 559.76 587.75 617.13

Level II Series (2.0%) 223.90 235.10 246.85

Level III Series (1.0%) 111.95 117.55 123.43

Level IV Series BA
(1.0%) 111.95 117.55 123.43
or
Level IV Series MA
(2.0%) 223.90 235.10 246.85

270
A - Safet y Inspector II 11755.94 12343.74 12960.93 13608.97 14289.42

Level I Series (5%) 587.80 617.19 648.05 680.45 714.47

Level II Series (2.0%) 235.12 246.87 259.22 272.18 285.79

Level III Series (1.0%) 117.56 123.44 129.61 136.09 142.89

Level IV Series BA
(1.0%) 117.56 123.44 129.61 136.09 142.89
or

Level IV Series MA
(2.0%) 235.12 246.87 259.22 272.18 285.79

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
APPENDIX A-2 SAFETY INSPECTORS MONTHLY SALARY SCHEDULE

Effective August 14, 20274

Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
268
A - Safet y Inspector I 11587.02 12166.37 12774.68

Level I Series (5%) 579.35 608.32 638.73

Level II Series (2.0%) 231.74 243.33 255.49

Level III Series (1.0%) 115.87 121.66 127.75

Level IV Series BA (1.0%) 115.87 121.66 127.75
or
Level IV Series MA (2.0%) 231.74 243.33 255.49

270
A - Safet y Inspector II 12167.40 12775.77 13414.56 14085.29 14789.55

Level I Series (5%) 608.37 638.79 670.73 704.26 739.48

Level II Series (2.0%) 243.35 255.52 268.29 281.71 295.79

Level III Series (1.0%) 121.67 127.76 134.15 140.85 147.90

Level IV Series BA (1.0%) 121.67 127.76 134.15 140.85 147.90 or
Level IV Series MA (2.0%) 243.35 255.52 268.29 281.71 295.79

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025

APPENDIX B – DISCIPLINE

The following Rule XVIII Standards of Employment of the Rules and Regulations of the Classified Services is attached below for reference.

SECTION 10 Causes for discipline or discharge. Each of the following constitutes cause for disciplinary action or discharge of an employee. (Rev 12/12/88-Res #88-298) (a) Chronic absenteeism
(b) Discourteous treatment of the p ublic, supervisors, other employees (c)I Failure to follow directions, policies and procedures (d) Improper political activity
(e) Inappropriate use of drugs and alcohol
(f) Incompetence
(g) Inexcusable neglect of duty
(h) Insubordination
(i) Loss of equipment or property
(j) Misuse of City time
(k) Misuse or damage of City equipment or property
(l) Sexual harassment
(m) Tardiness
(n) Untruthfulness
(o) Vehicle accident
(p) Violation of City and/or Department rules, regulations, policies and procedures (q) Violation of City, State and/or Federal Law(s)

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025

APPENDIX C - DISCIPLINARY APPEAL PROCEDURE

The City’s disciplinary appeal procedure provides for an evidentiary hearing before the Personnel Board. The Board has the authority to make an advisory recommendation to the City Council.

The City Council has final authority.

A. Personnel Board Appeal Hearing

1. If, within the five (5 ) day appeal period, the employee i nvolved does not file an appeal, unless good cause for failure is shown, the action of the City Manager or Department Head shall be considered final and binding.

2. If, within the five (5) day appeal period the employee files an appeal as specified in the Letter of Disciplinary Action by sending a le tter to the City Ma nager and copy to the Director of Human Resources, the City Mana ger shall instruct the Director of Human Resources to request the Personnel Board set an appeal hearing.

3. At its next regular or special meeting, the Personnel Board shall set a hearing date which shall not be more than sixty (60) days from the date of the filing of the employee’s appeal.

All interested parties shall be notified in writing of the date, time and place of the hearing at least ten (10) days prior to the date of the hearing.

4. All hearings shall be open unless the employee requests a closed hearing.

5. The Chairperson of the Personnel Board shall is sue subpoenas at the request of either the City or the appealing employee prior to th e commencement of the hearing. Subpoenas must be served at least twenty-four (24) hours prior to the time attendance is compelled.

6. The hearing need not be conducted according to technical rules relating to evidence and witnesses, except hereinafter provided. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of the evidence over objection in civil actions.

Hearsay evidence may be used for the pur pose of supplementing or explaining other evidence, but shall not be sufficient in itse lf to support a findi ng unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by st atute to be recognize d at the hearing, and irrelevant and unduly repetitious evidence shall be excluded.

7. The Chairperson of the Personnel Board shal l rule on the admission or exclusion of evidence.

8. Each party shall have these rights:
b. To be represented by legal counsel or other person of the party’s choice

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
c. To call and examine witnesses
d. To introduce evidence
e. To cross examine opposing witnesses on any matter relevant to the issues f. To impeach any witness regardless of which party first called the witness to testify g. To rebut the evidence against them

9. Oral evidence shall be taken only under Oath.

10. The hearing shall proceed in the following order unless the Chairperson, for special reason, otherwise directs:
a. The City shall be permitted to make an opening statement. b. The employee shall be permitted to make an opening statement. c. The City shall present its case in chief.
d. The employee may then present a defense and offer evidence in support. e. The parties may then, in order respectiv ely, offer rebutting evidence, unless the Chairperson of the Board for good reason pe rmits them to offer evidence upon their original case
f. Closing arguments or briefs shall be permitt ed at the discretion of the Chairperson of the Personnel Board.

11. The Personnel Board shall determine the releva nce, weight and credibility of testimony and evidence and shall base their findings on the preponderance of evidence.

12. The Personnel Board shall render its “Findi ngs, Recommendations and Conclusions” as soon as possible after the conclusion of the he aring and no later than ten (10) days after conducting the hearing unless otherwise stipulat ed by the parties. The Board’s Decision shall set forth the recommendations as to each of the charges and the reasons therefore.

13. The Personnel Board may recommend to the C ity Council the sustaining or rejecting of any or all of the charges filed against the employee. The Board may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee.

B. City Council Appeal Hearing
The decision of the Personnel Board is advisory only. The proposed decision shall be filed with City Council and served on the employee. If a suspension, dismissal or demotion is not sustained by the City Council, they shall se t forth the recommende d effective date the employee is to be reinstated, which may be any time on or after the date the disciplinary action went into effect. If the Council does not sustain or modifies a suspension, they shall set forth the effective dates of the modification, whic h may be any time on or after the date the suspension went into effect.

Composite Summary Memorandum of Understanding
City of Daly City and Teamsters Safety Inspectors
August 1, 20252 through July August 31, 20285

13153701.2 DA003-025
The matter is set before City Council at the ne xt scheduled meeting that falls more than five days from the filing of the proposed decision. The City Council hearing shall be open unless the employee requests a closed hearing. The h earing shall consist of summary arguments by the City’s representative and the employee’s representative.

The City Council may recess to Closed Session to deliberate after the presentation of the summary arguments. The City Council announces in Public Session its determination; it may affirm, deny, or modify the Personnel Board’s recommendation. The determination of the City Council is final and binding.
*The Disciplinary Appeal Procedure will be deleted from the MOU and inserted into the Rule and Regulations of the Classified Service upon adoption of the revise d Rules and Regulation of the Classified Service. This is subject to discussion and review by Labor Management Committee.

City Council Meeting Agenda Report Item # _____

Meeting Date: January 26, 2026

Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Operating Engineers Unit

Recommended Action

That the City Council adopt by resolution the Memorandum of Understandings and salary schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Operating Engineers Unit.

Discussion

The management “meet and confer” representatives designated by the City Council of the City of Daly City have met and conferred in good faith with the representatives of Local 39 Operating Engineers Stationary Engineers and, as a result, have arrived at a Memorandum of Understanding concerning wages, hours and conditions of employment as follows:

Salary Increase:
• Effective the first full pay period of September 2025 - 3% salary increase • Effective the first full pay period of September 2026 - 3% salary increase • Effective the first full pay period of September 2027 - 3% salary increase

Equity Adjustment:
• Effective the first full pay period of September 2025 – 1% equity adjustment • Effective the first full pay period of September 2026 – 0.5% equity adjustment • Effective the first full pay period of September 2027 – 0.5% equity adjustment

State Disability Insurance:

The City will contract with the State of California to provide for the State Disability Insurance Plan.

Shift Differential Pay:

Effective the first full pay period of September 2025 shift differential will be $7.25 per hour.

Safety Eyewear:

Effective September 1, 2025, the City will provide reimbursement for City approved prescription safety eyewear as needed.

City Council Agenda Report
Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Operating Engineers Unit

Meeting Date: January 26, 2026

Uniform Allowance:

Effective January 1, 2026, for “classic members” only (as that term is defined by CalPERS) subject to CalPERS rules and regulations, the City shall report $75.00 per pay period on behalf of all classifications covered by this MOU as pensionable uniform allowance to CalPERS. This amount is the cost of purchase and maintenance of these uniforms. Uniform allowance is not reportable for “new members” (as defined by PEPRA).

Longevity Pay:

Employees who have completed a minimum of 5 years of service with the City of Daly City shall be eligible to receive additional compensation to their base salary as follows:
• 5 Years of Service: $50/pay period
• 10 Years of Service: $125/pay period
• 15 Years of Service: $200/pay period
• 20 Years of Service: $250/pay period

City Contribution into RHS for Employees Hired on or after 11/14/2022:

Effective the first full pay period following adoption of the MOU by the City Council, the City shall contribute $75 per month.

Compensating Time Off (CTO):

Effective January 1, 2026, no employee may accrue compensating time off (CTO) in excess of two hundred and forty (240) hours.

Bilingual Pay:

Effective January 1, 2026, bilingual Pay will increase to $150.00 per month. The City will determine the number of positions, the shifts, the eligible languages and the standards and procedures for certification of such pay.

Vision Reimbursement Program:

• Effective January 1, 2026, the above maximum calendar reimbursement for frames and lenses will increase to three hundred dollars ($300.00).
• Effective January 1, 2027, the above maximum calendar reimbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00). • Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

City Council Agenda Report
Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Operating Engineers Unit

Meeting Date: January 26, 2026

Fiscal Impact

Staff recommends appropriating a total of $199,407 for FY 2026 and $327,241 for FY 2027 for estimated increase in costs due to the contracts. Of the total, appropriations to the Water fund would amount to $51,645 for FY 2026 and $87,756 for FY 2027 and appropriations to the Sanitation Fund would amount to $147,762 for FY 2026 and $239,485 for FY 2027.

Summary/Conclusion

Staff requests that the City Council adopt the Memorandum of Understanding between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Operating Engineers Unit for the period of September 1, 2025, through August 31, 2028.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Natalie Sakkal
Director of Human Resources

Attachment: Tracked Changes Local 39 Operating Engineers MOU

13195104.1 DA003-025

MEMORANDUM OF UNDERSTANDING
between

CITY OF DALY CITY
and

INTERNATIONAL UNION OF OPERATING ENGINEERS
STATIONARY ENGINEERS LOCAL 39

OPERATING ENGINEERS UNIT

September 1, 20252 through August 31, 20285

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF DALY CITY
AND

INTERNATIONAL UNION OF OPERATING ENGINEERS/
STATIONARY ENGINEERS LOCAL 39

OPERATING ENGINEERS UNIT

September 1, 20252 through August 31, 20285

The adjustments to wages, hours and conditions of employment that are set forth in this Memorandum have been negotiated by and between the bargaining representatives of the City of Daly City (hereinafter, “"City”") and the bargaining representa tives of the International Union of Operating Engineers, Stationa ry Engineers, Local 39 (hereinafter, “"Union"”), and shall apply to all employees of the City working in the classification set forth in Appendix A.

The adjustments to wages, hours and conditions of employment that are set forth in this memorandum have been negotiated in good fa ith and agreed upon as being an equitable adjustment of present wages, hours and conditions of employm ent, between the bargaining representatives of the City and the bargaini ng representatives of the Union. The bargaining representatives of the Uni on agree to recommend to its members for their favorable consideration and vote, all of the salary and fringe benefit adjustments as set forth herein and; the bargaining representatives of the City agree to recommend to the Ci ty Council that all of the adjustments as set forth herein be adopted in full by the City Council in the same manner and procedure prescribed by law.

ARTICLE I – RECOGNITION

International Union of Operati ng Engineers Stationary Engineer s Local 39 is recognized as exclusive representatives pursuant to the City of Daly City Empl oyer-Employee Relations Resolution for all employees assigned to the cl assifications set forth in Appendix A which is attached and made a part hereof.

ARTICLE II – UNION MEMBERSHIP AND DUES

The Union may have the regular dues of its me mbers within a bargaining unit deducted from employees’' paychecks under procedures prescribed by the City for such deductions. Dues deduction shall be made based upon written authorization from the Union, and shall continue (1) until such authorization is revoked, in writing, by the Union; or (2) until the transfer of the employee to a unit re presented by another employee or ganization. The Human Resources Department and the Finance Department will work to provide that dues deductions are promptly terminated when an employee transfers out of union representation through a change in classification or status. The Union must indemnify the em ployer for any claims made by employees as a result of the payroll deductions.

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

ARTICLE III – UNION REPRESENTATIVE

Reasonable access to employee work locations shall be granted officers of the Union and their officially designated representatives for the pur pose of processing grievances or contacting members of the Union concerning business within the scope of representation. Such officers or representatives shall not enter any work lo cation without the consent of the Department Head or his/her designated representative. Access shall be restricted so as not to interfere with the normal operations of the De partment or with the establ ished safety or security requirements.

Solicitation of membership and activities conc erned with the internal management of the Union, such as collecting due s, holding membership mee tings, campaigning for office, conducting elections and distributing literature, shall not be conducted during working hours.

City employees, the Union, or their officially designated Union representatives may, with the prior approval of the Department Head or his or her designated representative, be granted the use of City facilities during non-work hours for meetings of City employees provided space is available.

The use of equipment other than items normally used in the conduct of business meetings, such as desks, chairs, and blackboards, is strictly prohib ited, the presence of such equipment in approved City facilities notwithstanding.

The Union may use portions of a Department bulletin board under the following conditions:

1. All materials must be dated and must identify the Union that published them.

2. Unless special arrangements are made, materials posted will be removed thirty-one (31) days after the publication date.

3. The Department reserves the right to determine where a bulletin board shall be placed and what portion of it is to be allocated to Union's materials.

4. If the Union does not abide by these rules, it will forfeit its right to have materials posted on a Department bulletin board.

ARTICLE IV – SALARIES

A. Cost of Living Adjustments Salary Increases

• Effective September 13, 20252, the parties agree to a threefour percent (34%) salary cost of living increase. (See Appendix B-1)

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025
• Effective September 12, 20263, the parties agree to a four three percent (34%) cost of living salary increase. (See Appendix B-2)

• Effective September 114, 20274, the parties agree to a four three percent (34%) cost of livingsalary increase. (See Appendix B-3)

B. Equity Adjustments

• Effective September 13, 2025, the parties agree a one percent (1.0%) increase shall be applied to the salary schedule.

• Effective September 12, 2026, the parties agree a one-half percent (0.5%) increase shall be applied to the salary schedule.

• Effective September 11, 2027, the parties agree a one-half percent (0.5%) increase shall be applied to the salary schedule.

C. Section IRC 414(h)
City will continue to make av ailable the Section IRC 414(h) option to affected members.

Eligibility to participate and the irrevocable conditions of one-time-only election continue to be pursuant to the regulations as set forth by the Internal Revenue Service.

ARTICLE V – BENEFITS

The City will contribute toward the City spon sored benefit plans during the life of this Memorandum of Understanding as follows:

A. Medical Insurance Benefits

The City will contract with the California P ublic Employees Retirement System (CalPERS) for the purpose of providing employees with medical insurance benefits. The City’s monthly contribution to CalPERS for each eligible ac tive employee for the purchase of medical insurance will be:

EE up to $731.89
EE + 1 up to $721.54
Family up to $948.13

B. Cafeteria Plan Allowance

The City will maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing empl oyees with access to various he alth and welfare benefits.

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Benefits available through the Cafeteria Plan include, but are not limited to, medical insurance, flexible spending accounts for out-of-pocket me dical expenses and dependent care, dental insurance and life insurance benefits. The City agrees to provide a Cafeteria Plan Allowance to all employees eligible to participate in C ity-sponsored health bene fits under Section A of this Article. Any tax consequences resulting from City contributions to the Cafeteria Plan are the sole responsibility of the employee.

The City will provide each eligible active employee with a monthly Cafeteria Plan Allowance for the purpose of participation in Section 125 Cafeteria Flexible Benefits Health and Welfare Plan.

1. The City will contribute to medical benefits for eligible employees as follows:

a. Employee Only: 100% of the employee only Kaiser Bay Area medical premium. (The employee only monthly contribution is frozen at $1031.89 for employees hired before September 1, 2019 until it equals the Kaiser Bay Area rate.) This amount is inclusive of the City’s direct health contributions in Section A above. In the event that the Kaiser Bay Area rate increases 15% or more in any year the parties shall split the cost of the rate increase above 15% for the plan year.

b. Employee + 1: 95% of the Kaiser Bay Area medical premium. This amount is inclusive of the City’s direct health contributions in Section A above. In the event that the Kaiser Bay Area medical premium increases 15% or more in any year the parties shall split the cost of the rate increase above 15% for the plan year.

c. Employee plus family: 95% of the Kaiser Bay Area medical premium. This amount is inclusive of the City’s direct health contributions in Section A above. In the event that the Kaiser Bay Area rate increases 15% or more in any year the parties shall split the cost of the rate increase above 15% for the plan year.

d. There is no cash back except for those employees hired before January 1, 2020 and frozen at the Employee Only rate as specified above.

2. Opt-Out Cash in lieu:
• Cash in lieu Eligibility: Employees who opt out of the CalPERS medical plan and receive cash must provide the following: (1) proof that the employee and all individuals for whom the employee intends to claim a personal exemption deduction (“tax family”), have or will have minimum essential coverage through anot her source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”); and (2) the employee must sign an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year. The opt-out payment cannot be made and the City will not in fact make payment if the City knows that the employee or tax family member doesn’t ha ve such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied. Employees and known dependents

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who do not provide the annual information required will be enrolled in the lowest cost health plan.

• Cash in lieu shall be $500 per month minus the cost of the City sponsored qualified benefits specified in section 3(a) below.

3. City-Sponsored Benefits

a. From the Cafeteria Plan Allowance, em ployees must purchase the following qualified benefits:

• City-sponsored Dental/Orthodontia Insurance
• City-sponsored Life Insurance in the amount of $50,000 • City-sponsored Long Term Disability Insurance

b. From the Cafeteria Plan Allowance, empl oyees may purchase the following qualified benefits:

• City-sponsored Medical Insurance through the PERS Health Benefits Administration

c. In the event the premium for the benefits selected by the employee exceeds the City’s contribution indicated above, the employee will pay the remaining balance through payroll deductions.

C. Vision Reimbursement Program

Employees and their dependents are eligible for a maximum reimbursement of $200.00 per year for frames or lenses. The reimbursement may be requested every 12 months.

• Effective January 1, 2026, the above maximum calendar reimbursement for frames or lenses will increase to three hundred dollars ($300.00). • Effective January 1, 2027, the above maximum calendar reimbursement for frames or lenses will increase to three hundred and fifty dollars ($350.00). • Effective January 1, 2028, above maximum calendar reimbursement for frames or lenses will increase to four hundred dollars ($400.00).

D. State Disability Insurance

If Dduring the term of this agreement the bargaining unit elects the State Disability Plan; the City will contract with the State of California to provide for the State Disability Insurance Plan for employees covered by this Memorandum of Understanding. State Disability Insurance is a plan solely funded by employee contributions and there shall be no contributions by the City toward State Disability Insurance.

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In disability cases aris ing outside the course of the empl oyee's employment, State Disability Insurance benefits and sick benefit allowances shall be paid separately, but in the event State Disability Insurance payments cover all or part of the period durin g which sick benefit allowances are paid, the sum of the two (2) shall not exceed the sick benefit payable for said period, and the unused portion of accumulated sick leave will continue to be credited to the employee. Integration of sick leave benefits with State Disability Insurance payments is to be automatic; the City may not waive integration, and any employee entitled to State Disability Insurance payments must apply therefore (in or der that the principle of integration may be applied) before sick benefits are payable.

The City will coordinate this benefit with sick leave, vacation and compensatory time.

ARTICLE VI – LONG TERM DISABILITY

The City agrees to continue to provide a Long Term Disability plan to provide sixty-six and two-thirds percent (66-2/3%) of salary to a maximum of $4,000 pe r month after a 60-day waiting period and exhaustion of accumulated si ck leave. The employee’s portion of the monthly plan cost is $8.50 per month...

ARTICLE VII – RETIREMENT

A. Pursuant to the Public Employees’ Retirement System (PERS) contract with the City of Daly City, the following provisions are provided for affected employees:

Classic Employees: For classic employees as define d by defined by Public Employees’ Retirement System (PERS) and California Pu blic Employees’ Pension Reform Act of 2013, the contract with the Public Employ ees' Retirement System will provide the following:

• Section 21354.3 - 3% @ Age 60 Formula
• Section 20042 - One-Year Final Compensation
• Section 21335 - Annual Cost-Of-Living Allowance Increase (Up to 3%) • Section 20965 - Credit for Unused Sick Leave
• Section 21548 - Pre-Retirement Optional Settlement 2W Death Benefit • Section 21573 - 1959 Survivor Benefit – Third Level
• Section 21620 - $500 Retired Death Benefit
• Section 21024 – Military Service Credit as Public Service

New Employees : For new employees hired on or af ter January 1, 2013, as defined by California Public Employees’ Retirement System (PERS) and California Public Employees’ Pension Reform Act of 2013 (PEP RA), the contract with the Public Employees' Retirement System will provide the following:

• Section 7522.2 - 2% @ Age 62 Formula
• Section 20037 - Three-Year Average Final Compensation

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• Section 21329 - Annual Cost-of-Living Allowance Increase (up to 2%) • Section 21548 - Pre-Retirement Optional Settlement 2W Death Benefits • Section 21573 – 1959 Survivor Benefit – Third Level
• Section 20965 – Credit for Unused Sick Leave
• Section 21573 - 1959 Survivor Benefit Level 3 for affected employee • Section 21024 – Military Service Credit as Public Service • Section 21620 - $500 Retired Death Benefit

1. Cost Sharing - Effective September 2016, bargaining unit employees shall pay point seven five percent (0.75%) towards the employer share of the PERS contribution.

B. The City’s contribution to retiree health for qualifying annuitants will be increased annually as required under PEMHCA. The City’s monthly contribution to annuitants will be:

EE up to $769.50
EE+1 up to $721.54
Family up to $948.13

This amount will be increased in subsequent years, pursuant to Government Code section 22892 (c), until such time as th e contribution for annuitants de scribed under Article 5(B) is equal to the contribution to employees described in Article 9(A).

The retiree health benefit for all bargaining unit employees hired on or after November 14, 2022, shall be limited to the PEMHCA minimum.

For employees hired on or after adoption of the resolution eliminating retiree medical for new hires (November 14, 2022) the City shall contribute $50 per month to the current ICMA City contracted retiree health savings account (or any account established under this section).

Effective _the first full pay period following adop tion of the MOU by the City Council the City shall contribute $75 per month.

ARTICLE VIII – REIMBURSEMENT for REQUIRED CERTIFICATION

A. Affected employees required to hold certifications as a minimum requirement of their specific classification duty statements will be reimbursed by the Department of Water and Wastewater Resources for the required renewal fees. In order to be reimbursed, employees must present a copy of the fee invoice and evidence of the satisfactory renewal(s) of their certification.

Represented employees who hold a higher level certificate shall be reimbursed an amount of money equal to the required certificate renewal.

B. Affected employees required to satisfactorily complete continuing educational units (CEUs) in order to maintain required certification will be reimbursed for the fees associated with registering and completing such units upon presentation of evidence of their satisfactory completion of the

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units. Prior to registration for continuing educational units, employees must have the approval of the course provider and content from the Department Head or his/her designee.

C. Upon notification that an Operator has passed a new state certification test and requirements, management will sign off on the application for certification within 30 days. This does not apply to Article IX “Certification Pay” or change the interpretation of that section.

ARTICLE IX - CERTIFICATION PAY

• SWRCB - Effective the first full pay period of Se ptember 2022Members of this bargaining unit will be eligible for 5% of base pay for possession State Water Resources Control Board (SWCRB) certifications as listed below (The SWRCB Certification/Educational Incentive pay shall compound from one certificate grade to the next. Up to 25% maximum for all positions):

SWRCB Certification
Plant
Operator
I/II
Grade %
Water &
Wastewater
Operator
I/II
Grade %
Senior
Water &
Wastewater
Operator
Grade %
Wastewater
Treatment
I 5% Water or
Wastewater
Treatment
I 5% Water or
Wastewater
Treatment
I 5%
II 5% II 5% II 5%
III 5% III 5% III 5%
IV 5% IV 5% IV 5%
V 5% V 5% V 5%

Employees are required to provide copies of their certification/education and maintain current certification/education status. If any section/category of the certification/education is not current, the employee will not be entitled to certification pay. The status of certification is to be reviewed annually.

ARTICLE X – BILINGUAL PAY

The City provides one hundred dollars ($100.00) per month bilingual pay to those employees who become certified and eligible for such pay and who are routinely and consistently assigned to positions requiring communication skills in languages other than English.

Effective January 1, 2026, bili ngual pay will increase to one hundred and fifty dollars ($150.00) per month.

The following languages are approved for bi lingual pay compensation: Spanish, Tagalog, Mandarin, Cantonese, Korean, Vietnamese, and American Sign Language.

ARTICLE XI – PROTECTIVE CLOTHING, SAFETY FOOTWEAR AND SAFETY

EYEWARE

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The City shall provide protectiv e clothing necessary for the em ployee to perform his or her duties and responsibilities. All employees represented by the Union shall be provided clothing and shoes as set forth below a nd shall be worn at all times for health and safety and identification purposes. All uniforms shall be laundered.

A. Employees in the Plant Operat or I and II, Water Operator, Water/Wastewater Operator-In- Training, Water/Wastewater Operators I and II, and Senior Water/ Wastewater Operator classifications shall be issued eleven (11) sets of shirts and pants to constitute City uniforms.

B. Employees in the Plant Operat or I and II, Water Operator, Water/Wastewater Operator-In- Training, Water/Wastewater Operators I and II, and Senior Water/ Wastewater Operator classifications, shall be provided two (2) lined jackets.

C. The City shall reimburse unit members up to three hundred fifty dollars ($350) for the purchase and/or repair of safety footwear (including socks/boot laces/inserts) as needed, subject to prior approval of the supervisor and upon presentation of a valid receipt for actual purchase. Typical repair includes re-s oling, re-heeling, re-stitching but do es not include accessories or waterproofing/upkeep. The employee shall make the selection of an appropriate type of footwear, subject to the advance approval of the Department Head. Unit members receiving reimbursement under this provision shall be required to wear the approved footwear at all times while on duty.

D. Safety Eyewear - Effective September 1, 20252, the City will provide reimbursement for up to $200 for every 24-month period as needed for City approved prescription safety eye wear , as needed. The City will purchase the safety eyewear upon the request of the employee.

Employees will be responsible for submittin g a receipt for such eyewear to receive reimbursement.

E. PERS Reporting of Uniform and Maintenance of Uniforms

1. For classic members as defined by CalPERS, subject to CalPERS rules the monetary value reported to PERS as taxable income for the purchase and maintenance of uniforms shall be based on the total the cost of uniforms and maintenance divided by the number of employees that use these uniforms. The classifications below shall receive uniforms as determined by the Department.

2. For new members as defined by CalPERS as of January 1, 2013, the monetary value of uniforms and maintenance of uniforms will be treated in accor dance with Public Employee’s Pension Reform Act (PEPRA).

The City will report the following values towards Uniform allowance each pay period.

Classification 2013 PERS
Clothing
Contributions
Plant Operator 1/11 $ 13.68
Senior Water/Wastewater Operator $ 13.68

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Water Wastewater Operator in Training (Water Operations) $ 18.76 Water Wastewater Operator in Training (Wastewater
Operations)
$ 13.68
Water/Wastewater Operator 1/11 (Water Operations) $ 18.76 Water/Wastewater Operator 1/11 (Wastewater Operations) $ 13.68

Effective January 1, 2026, for “clas sic members” only (as that term is defined by CalPERS) subject to CalPERS rules and regulations, the City shall report $75.00 per pay period on behalf of all classifications covered by this MOU as pensionable uniform allowance to CalPERS. This amount is the cost of purchase and maintenance of these uniforms. Uniform allowance is not reportable for “new members” (as defined by PEPRA).

ARTICLE XII – HOLIDAYS

The holidays are:

New Year's Da
y, January 1 Ei ght (8) hours
President's Birthday (Celebrated) Ei ght (8) hours
Memorial Day (Celebrated) Ei ght (8) hours
Juneteenth (Celebrated) Ei ght (8) hours
Independence Day, July 4 Ei ght (8) hours
Labor Day (Celebrated) Ei ght (8) hours
Thanksgiving Day Ei ght (8) hours
Day after Thanksgiving Day Ei ght (8) hours
Christmas Eve, December 24 Four (4) hours
Christmas Da
y, December 25 Ei ght (8) hours
New Year's Eve, December 31 Four (4) hours
Floatin
g Holiday Fort y (40) hours

Effective January 1, 1999, and eEach January 1 thereafter, employees shall be granted forty (40) hours of floating holidays. These hours shall not accrue from calendar year to calendar year.

Effective January 1, 1999, and eE ach January 1st thereafter, City employees who transfer or are promoted from a City work unit with othe r holiday schedules or newly-hired employees, shall be granted floating holidays calculated at the rate of forty (40) hours per twelve-month (12) period pro-rated from the effective date of transfer, promotion or hire, to December 31st of the year of their transfer, promotion or hire.

• Affected regular full-time empl oyees who work a schedule of five 8-hour periods (5/8 work week) shall be entitled to take all authorized holidays at full pay, not to exceed eight (8) hours for any one (1) day provided they are in a pa y status on both their regularly scheduled work days immediately preceding and following the holiday.

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• Affected regular full-time employees who work a schedule of four 10-hour periods (4/10 work week) shall accrue eight (8) hours compensatory time for each holiday falling outside their normally scheduled work week. In the event that a unit member who works a 4/10 schedule is required to observe a holiday which falls w ithin his or her normally scheduled work week, he or she will receive ten (10) hours pay. Th e method of scheduling operators for holiday staffing is reflected in Appendix C.

• In the event that a holiday falls within an employee's normally scheduled work week and he or she is required to work, the employee shall receive regular pay for time worked, plus Holiday Compensation at the rate of one and one-half times (1.5X) regular pay.

• Unit members shall normally have the option of selecting compensatory time off or pay for hours worked on a holiday. However, for operat ional reasons, the City retains the discretion of requiring the unit member to take pay in lieu of compensatory time off.

• Employees shall be paid for unused compensatory time not taken off w ithin six (6) months from accrual.

ARTICLE XIII – HOURS AND OVERTIME

A. Work Week Work Day: The regular workweek shall consist of forty (40) hours and the regular workday shall consist of either eight (8) hours, nine (9) hours or ten (10) hours or twelve (12) hours. The Department has the right to change work schedules during the term of this Agreement following the completion of any required meet and confer obligations.

B. Overtime: Employees working in excess of their regular work day shall be granted overtime pay or compensating time off for the time worked at the discretion of the Department Head, at time and one-half (1.5X) of the employee's base rate of pay. Employees subject to the requirements of the FLSA who work in excess of their scheduled 40-hour workweek shall be granted overtime pay at time and one-half (1.5X) of the employee’s FLSA rate of pay.

C. Call Back: If an employee is ca lled back to work, he or she sh all, upon reporting, receive a minimum of two (2) hours work, or if two (2) hours work is not furnished, a minimum of two (2) hours pay at time and one-half (1.5X) of the employee's base rate of pay. This provision does not apply to instances in which the employee is called to report before his or her regular starting time and has worked from the time he or she reports to his regular starting time.

D. Shift Differential: Affected employees, who are assigned to work a shift other than day shift, shall receive a shift differential for all hours so worked as follows:

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• Effective the first full pay period of September 2022 $4.00/hour • Effective the first full pay period of September 2023 $5.00/hour • Effective the first full pay period of September 20254 $7.256.00/hour

E. Temporary Modified (Light) Duty Policy: The department head, in consultation with the Human Resources Director will determine whether there is suitable temporary work available within the City with due regard to the needs of the City and the medical condition of the employee.

F. Operator In Training (O.I.T) Pa y- An O.I.T. who has been a ssigned responsibility for a shift (on either Wastewater and Water Operations), shall be granted temporary assignment pay equal to 5% above the O.I.T.’s current rate of pay for each shift worked provided the individual possesses the required certification.

G. Senior Operator Compensation G. Longevity Pay – Employees who have completed 20 a minimum of 5 years of service with the City of Daly City shall be eligible to receive additional compensation to their base salary as follows:in the amount of $100 per month.

5 Years of Service: $50/pay period
10 Years of Service: $125/pay period
15 Years of Service: $200/pay period
20 Years of Service: $250/pay period

The above amounts are total amounts for each range of years of service and do not stack. Thus, for an employee at 16 years of service, the total longevity payment is $200 per pay period.

H. Compensatory Time Off

Effective January 1 2026, no employee may accrue compensating time off (CTO) in excess of two hundred and forty (240) hours.

Local 39 (Operating Engineer) members with CTO banks in excess of 240 hours must use CTO in lieu of vacation for the remainder of 2025. The parties agree to cash out all accumulated CTO in excess of 240 over the term of this contract. Hours in excess of 240 up to 350 shall be cashed out in the first full pay period of February 2026. Hours in excess of 240 up to 350 shall be cashed out in the first full pay period of February 2027. All remain ing hours in excess of 240 shall be cashed out in the first full pay period of February 2028.

If an employee is selected for promotion (except as described below) to a classification with a higher salary range than their existing (pre-promotion) classification’s salary range, the employee’s accumulated CTO shall be cashed out at their pre-promotional rate in the pay period prior to the effective date of the promotion. This mandatory cash out will not apply to “flex up” promotions between:
• Water/Wastewater Operator-In-Training to Water/Wastewater Operator I • Water/Wastewater Operator I to Water/Wastewater Operator II • Water/Wastewater Operator-In-Training to Plant Operator I • Plant Operator I to Plant Operator II

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• Plant Operator I/II to Water/Wastewater Operator I/II

ARTICLE XIVII – LEAVES

The following leave provisions are established by the Rules and Regulations of the Classified Service of the City of Daly City and are applicable to employees in the unit.

A. Vacations

Vacation time is accumulated in accordance with the following schedule:

Accrual Rate
Years During Which Vacation is Earned
5/6 working 10 days*/month
year
Accrues from initial employment date
1-1/4 working 15 days/monthyear Accrues after 4th anniversary date 1-2/3 working 20 days/monthyear Accrues after 12th anniversary date 2-1/12 25 working
days/yearmonth
Accrues after 20th anniversary date

* For purposes of this section one working day is defined as eight (8) hours.

B. Sick Leave

Sick leave shall not be considered as a right which may be used at th e employee's discretion, but a privilege which shall be allowed only in ca se of necessity and actua l illness, disability and as required by law. Full-time employees shall accrue sick leave at the rate of twelve (12) working days* (ninety-six (96) hours) per year. For classifications represented by this bargaining unit, there is no maximum accrual.

Any bargaining unit employee having accumulated, unused sick leave credit who is separated from employment by retiring as set forth in the Public Employees’ Retirement System contract or, for reason of death or abolishment of posi tion, shall be paid fifty percent (50%) of said employee’s daily rate of pay for each day of accumulated and unused sick leave as of the date of said retirement, death, or abolishment of position. However, the maximum pay out of 50% of accumulated, unused sick leav e at the time of retirement, death or abolishment of position remains at a cash value not to exceed one hundred (100) days (eight hu ndred (800) hours) of pay.

Employees hired on or after July 1, 2020 shall not be eligible to ca sh out sick leave upon separation from employment.

*For purposes of this section, a workday is defined as eight (8) hours

C. Bereavement Leave

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A maximum of five (5) working days* bereavem ent leave may be taken for deaths occurring in the immediate family. Payment for time off will be subject to formal request to the City Manager by the employee who shall state in th e request the relations hip to the deceased.

Bereavement Leave shall not be accumulated and is not a part of the sick leave benefit. For purposes of this section, immedia te family shall be defined as : “a family member” including an employee’s husband/wife/live-in domestic partner, son/daughter (including adopted)/step- son/step-daughter, brother/sister, brother/sister-in-law, father /mother/adoptive father/mother, father-in-law/mother-in-law, daughter/son-in-law or grandfather/grandmother.

*For purposes of this secti on, a working day shall be defi ned as the number of non- overtime hours in the day that the employee is scheduled to work.

D. Personal Leave

City agrees to provides affected employees two hours of personal leave to be taken at any time during the calendar year that is agreeable to the employee and the employee's department head.

Said two hours personal leave shall be taken e ach year pursuant to the above conditions and shall not accrue from year to year.

ARTICLE XIV – GRIEVANCE PROCEDURE

A grievance is defined as a condition that exists as a result of an unsatisfactory adjustment or failure to adjust a claim or dispute by an employee or employee’s relative to the application or interpretation of the Rules and Regulations of the Classified Service, Departmental Rules and Regulations, Memorandum of Understanding, established policies and procedures of the City or department (whether written or oral), or a dispute or disagreement as to the facts pertaining to a disciplinary matter.

The means, manner, method or merit of any se rvice or activity provided by law or executive order; collective issues of salary, fringe be nefits, working condition subject to meeting and conferring; any disciplinary act ion shall not be a subject of the grievance procedure. All grievances shall be processed in accordance with the following procedure:

Step 1: No matter shall be considered a grievance until it is first taken up orally by the employee and/or the Steward with the Division Head wh o will attempt to settle the matter. Employee shall file said grievance within thirty (30) calen dar days of the date of the incident/event or direct knowledge of the incident/event.

Step 2: If any such grievance or complaint is not settled by the proce dure above described, it shall within five (5) business days be set fort h in writing by the Union and submitted to the Division Head. Within the ten (10) business da ys thereafter if necessary, there shall be a meeting between the aggrieved employee, the Un ion Steward, and the Di vision Head in an attempt to settle the matter. Within five (5) business days following such meeting, the employer shall give a written reply to the Union and aggrieved employee.

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Step 3: If any such grievance has not been se ttled by the procedure described above, it shall within ten (10) business days be set forth in writing by the Union and submitted to the Department Head. Within ten (10) business days thereafter, there shall be a meeting between the aggrieved employee, the Union Steward and th e Division Head in an attempt to settle the matter. Within five (5) business days following such meeting, the employer shall give a written reply to the Union and aggrieved employee.

Step 4: If any such grievance or complaint is not settled by the proce dure described above, it shall within five (5) business days be set fort h in writing by the Union and submitted to the City Manager. Within ten (10) business days th ereafter, there shall be a meeting between the Union Business Agent, and the City Manager in an attempt to settle the matter. Within five (5) business days following such meeting, the Employer shall give a written reply to the Union.

Step 5: If any such grievance has not been settled by the procedure described above, the grievance may within five (5) business days be submitted to the Personnel Board, if eligible as an appeal. A grievance submitted to the Pers onnel Board shall be processed in accordance with the Civil Service Rules. Alternatively, if both parties agree, the matter shall be submitted to fact finding as provided in steps 6 and 7.

Step 6: Within five (5) business days following such request, the Employer, the Union Steward and the Union Business Agent shall agree on a fact finder and arrange for the time and place of fact finding. In case of disagreement on a fact finder, application shall be made to the State Mediation and Conciliation Service. The Employer and the Union shall each pay one-half (1/2) of the costs of fact finding, including the fees of the fact finder and other expenses of the fact finding proceedings, but not including compensati on or cost of representation, advocacy or witness for either party.

Step 7: Power of Fact Finder. The Finding of the Fact finder shall be submitted with a recommendation to the Personnel Board or the City Council fo r final action. The Personnel Board or the City Council shall act on the recommendation of the fact finder within thirty (30) days following submission of the recommendation.

Business days are described above and defined as Monday through Friday and exclude defined holidays within this contract under Article XI.

At anytime the time frames listed in this sect ion may be extended on a case by case basis by written mutual agreement of the City and the Union.

ARTICLE XVI – GENERAL PROVISIONS

A. Letters of Reprimand

Employees may request in writing to the Department Head with a copy to the Director of Human Resources that letters of reprimand which are Four (4) or more years old be removed from the employee’s personnel file provided the following conditions are met:

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1. The Letter of Reprimand is more than 4 years old.

2. The file does not contain subsequent letters of reprimand or records of disciplinary action.

3. The employee has not been notified in writing of pending disciplinary action at the time the written request to remove said letters of reprimand.

B. Labor Management Committee

Representatives of the City and the Union will meet quarterly as needed in a Labor Management Committee to discuss labor issues that arise during the term of this agreement.

C. Holiday Closure

The City reserves the right to close City Hall operations between December 24th and December 31st. During City Hall closure, employees will be required to use available accrued vacation, comp time, floating holidays or other applicable leave (not sick leave) or take unpaid time if accrued leave is not available.

D. Mandatory Direct Deposit

The parties agree that all employees will participate in mandatory direct deposit for payroll (including all compensation and vision reimbursements).

E. Personnel Rules

Immediately following the conclusion of labor negotiations the City and the Association will designate a labor-management subcommittee to meet and confer on changes to the Personnel Rules that are within the scope of bargaining. Changes to subjects that are within the scope of bargaining will not be made until the meet and confer process is completed.

F. City Uniform

The parties agree that the labo r-management subcommittee will meet and confer to resolve City-wide disparity in provision and cleaning of uniforms.

G.F. Operations Bidding for Shifts

1. 12 hour schedule will run from January thruthrough the end of December.

2. Bidding for shifts will be posted in the Ops room from Sept 1 st thruthrough Sept 30th and bidding will close midnight, October 1st, without exception. Email announcement on shift bidding will be sent out September 1st with a follow up reminder Sept 15th.

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

3. Bidding will be done in six month increments, unless shorter time increments are voted on by the Operations crew.

4. Bidding for shifts will be done on a seniority basis starting w ith nights, after nights bids, day shift will bid on a seniority basis.

5. Seniority definition is by department hire date.

6. Management will reserve the right to bring any operator back to day shift for evaluation as long as it is documented.

H.G. The City and Union will meet quarterly as needed to discuss labor issues that arise during the term of this agreement.

I.H. Orientation
The City shall provide the Union written notice of new employee orientations (no matter how few participants, and whether in person or online) at least ten ( 10) business days prior to the event. Representatives of the Union shall be pe rmitted to make a presentation of up to thirty (30) minutes, and present writ ten materials, during a portion of the orientation for which attendance is mandatory. No representative of management shall be present during the Union’s presentation. Paid release time shall be granted for stewards to participate in the new employee orientations. The Employer shall distribute at the new employee orientations a copy of this Agreement, the current salary schedule, a list of all job classificati ons represented by the Union.

ARTICLE XVII – SECTION 125

During the term of this agreement, Section 125 of the Internal Revenue Code provisions shall be made available to affected employees.

ARTICLE XVIII – COOPERATION BETWEEN PARTIES

It is hereby agreed between the parties that this Memorandum of Understanding provides for the amicable adjustment of wages, hours and conditions of employment. Each party hereby gives full faith and recognition to the Rules and Regulations of the Classified Service, the City Code of the City of Daly City, and the laws of the State of California (including equal employment and fair employmen t statutes), and shall respect the rights, obligations, and privileges reserved to the other by such rules, regulations and laws. The Stationary Engineers, Local 39 agrees that during the term of the Memorandum of Understanding there shall be no strike, no picketing, stoppages of work for any cause, no work slow-downs, interruption of the normal conduct of the City's business, or any other job action by any of its members. The City agrees that during the term of this Memorandu m of Understanding it will not engage in any lockout of its employees.

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025
The Union agrees to jointly cooperate with the City in increasing communications between the employees and the supervisors and to improve performance and productivity. The City and the Union recognize the importance of employee involvement in the operations of the City.

ARTICLE XIXVIII – SEPARABILITY OF PROVISIONS

Should any section, clause, or provision of th is Memorandum of Unde rstanding be declared illegal by final judgment of a court of competent jurisdiction, such invalidation of such section, clause, or provisions shall not invalidate the remaining porti ons hereof, and such remaining portions shall remain in full force and effe ct for the duration of this Memorandum of Understanding.

In the event of such invalida tion, the parties agree to meet and confer concerning substitute provisions for the provisions rendered or declared illegal.

ARTICLE XIX – FULL UNDERSTANDING

This Memorandum of Understanding constitutes a full and complete agreement by the parties and contains all of the matters upon which the parties reached agreement.

There will be no alteration or modification of any provision contained in this Memorandum without the written consen t of all parties hereto. Existing pr actices and/or benefits which are not referenced in this Memorandum and which are subject to the meet and confer process shall continue without change unless modified subject to the meet and confer process.

ARTICLE XXI – DURATION

Except as specifically provided, the effective da te of this Memorandu m of Understanding is upon ratification by both parties.

The term of this Memorandum of Unders tanding shall be from September 1, 202 52 through August 31, 20285.

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025
ARTICLE XXI – SIGNATORIES

Signatories to this Memorandum of Understa nding between the City of Daly City and International Union of Operating Engineers/Stationary Engineers Local 39:

REPRESENTATIVES FOR THE

INTERNATIONAL

REPRESENTATIVES FOR THE UNION OF OPERATING ENGINEERS / CITY OF DALY CITY STATIONARY ENGINEERS LOCAL 39:

__________________________ _____ ______________________________ _______ Natalie Sakkal Date Jeff Gladieux, President Date Director of Human Resources

____________________________ _____ ______________________________ _______ Donna WilliamsonTevon Edwards D a t e Bart FlorenceTim Eggen, Business Manager Date
Chief Negotiator

____________________________ _____ _______________________________ _______ Tim Nevin Date Brandy Johnson, Director of Public Date Assistant City Manager/Acting Director Finance & Employees Finance & Administrative Services

__________________________ _____ _______________________________ _______ Bonnie Woo Date Abby Veeser Date Laura
LeSieur, District Representative Date
Assistant to the Director of Human
Resources
Deputy Director Finance &
Administrative Services

__________________________ _____ ________
_______________________________ _______
Bonnie Woo Date Mark E. Gong,
Business Representative Date
Senior Management AnalystAssistant to the Director of Human Resources

________________________________ ________
Darin Schumacker, Steward Date

______________________________ _______
Tony Pereur, Steward Date

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025
APPENDIX A – CLASSIFICATIONS

INTERNATIONAL UNION OF OPERATING ENGINEERS/STATIONARY
ENGINEERS LOCAL 39

Operator-In-Training
Plant Operator I
Plant Operator II
Water/Wastewater Operator-In-Training
Water/Wastewater Operator I
Water/Wastewater Operator II
Senior Water/Wastewater Operator
Water Operator

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025
APPENDIX B-1– SALARY SCHEDULE

BIWEEKLY SALARY SCHEDULE

INTERNATIONAL UNION OF OPERATING ENGINEERS/STATIONARY ENGINEERS LOCAL 39

Effective September 13, 20252

Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
W 033 A -
Water / Wastewater Operator-in-
Training 3124.21 3280.42 3444 .44 3616.66 3797.49

W 038 A - Plant Operator I 3520.88 3696. 93 3881.77 4075.86 4279.66

W 041 A - Water / Wastewater Operator I 3548. 10 3725.50 3911.78 4107.37 4312.74

W 042 A - Plant Operator II 3707.17 3892. 53 4087.16 4291.52 4506.09

W 048 A - Water / Wastewater Operator II 4103. 56 4308.74 4524.17 4750.38 4987.90 W 059 A - Senior Water / Wastewater Operator 4572.01 4800.61 5040 .64 5292.67 5557.30

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025
APPENDIX B-2 – SALARY SCHEDULE

BIWEEKLY SALARY SCHEDULE

INTERNATIONAL UNION OF OPERATING ENGINEERS/STATIONARY ENGINEERS LOCAL 39

COMBINED OPERATOR AGREEMENT

Effective September 123, 20262

Ran
ge STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
W 033 A -
Water / Wastewater Operator-in-
Training 3233.55 3395.23 3564.99 3743.24 3930.40

W 038 A - Plant Operator I 3644.11 3826.32 4017.64 4218.52 4429.44

W 041 A - Water / Wastewater Operator I 3672. 28 3855.90 4048.69 4251.13 4463.68

W 042 A - Plant Operator II 3836.92 4028.77 4230.21 4441.72 4663.81

W 048 A - Water / Wastewater Operator II 4247. 18 4459.54 4682.52 4916.65 5162.48 W 059 A - Senior Water / Wastewater Operator 4732.03 4968.63 5217.06 5477.91 5751.81

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

APPENDIX B-32– SALARY SCHEDULE

BIWEEKLY SALARY SCHEDULE

INTERNATIONAL UNION OF OPERATING ENGINEERS/STATIONARY ENGINEERS LOCAL 39

Effective September 112, 20273

Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
W 033 A - Water / Wastewater Operator-in-Training 3346.73 3514.06 3689. 77 3874.25 4067.97

W 038 A - Plant Operator I 3771.66 3960.24 4158.25 4366.17 4584.47

W 041 A - Water / Wastewater Operator I 3800.81 3990.85 4190.39 4399.91 4619.91

W 042 A - Plant Operator II 3971.22 4169.78 4378.27 4597.18 4827.04

W 048 A - Water / Wastewater Operator II 4395.83 4615.63 4846.41 5088.73 5343.16 W 059 A - Senior Water / Wastewater Operator 4897.65 5142.53 5399. 66 5669.64 5953.12

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

APPENDIX C

METHOD OF SCHEDULING OPERATORS FOR HOLIDAY STAFFING

Operators will be scheduled off on holidays as follows:

Step 1 - Always Off

(a) Operators whose regular schedule shows them to be off on the holiday will not work on the holiday.

(b) Any operators on a five-day-per-week, eight-hour-per-day schedule will take the holiday.

(c) Operators who have previously requested the holiday off during annual vacation sign-ups or otherwise have requested the holiday approved time off will be off.

(d) Volunteers will be solicited from the remaining operators scheduled to work on the holiday to see if any desire to take the holiday off until 28 days prior to th e holiday. These requests will be accommodated except in those cases where doing so requires additional overtime.

Employees volunteering under the provisions of this section will receive eight hours of holiday pay and must use two hours of vacation or compensatory time.

Step 3 - Mandatory Scheduling

(e) The most senior operator on e ach of the specific shifts to be staffed on the holiday shall indicate his or her choice of wh ether or not he or she wishes to work on the holiday. If he or she wishes to work on the holida y, all other operators on that sp ecific shift will be off on the holiday. If he or she wishes to be off on the holiday, the ne xt most senior operator on that specific shift will be given the choice of whethe r to work or be off on the holiday. If all operators on a specific shift wish to have the hol iday off, then the least senior operator shall work the holiday.

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

APPENDIX D - DISCIPLINARY APPEAL PROCEDURE

The City’s disciplinary appeal procedure provides for an evidentiary hearing before the Personnel Board. The Board has the authority to make an advisory recommendation to the City Council. The City Council has final authority.

A. Personnel Board Appeal Hearing

1. If, within the five (5) day appeal period, the employee involved does not file an appeal, unless good cause for failure is shown, the action of the City Manager or Department Head shall be considered final and binding.

2. If, within the five (5) day appeal period the employee files an appeal as specified in the Letter of Disciplinary Action by sending a letter to the City Manager and copy to the Director of Human Resources, the City Manager shall instruct the Director of Human Resources to request the Personnel Board set an appeal hearing.

3. At its next regular or special meeting, the Personnel Board shall set a hearing date which shall not be more than sixty (60) days from the date of the filing of the employee’s appeal. All interested parties shall be notified in writing of the date, time and place of the hearing at least ten (10) days prior to the date of the hearing.

4. All hearings shall be open unless the employee requests a closed hearing.

5. The Chairperson of the Personnel Board shall issue subpoenas at the request of either the City or the appealing employee prior to the commencement of the hearing. Subpoenas must be served at least twenty-four (24) hours prior to the time attendance is compelled.

6. The hearing need not be conducted according to technical rules relating to evidence and witnesses, except hereinafter provided. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of the evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by statute to be recognized at the hearing, and irrelevant and unduly repetitious evidence shall be excluded.

7. The Chairperson of the Personnel Board shall rule on the admission or exclusion of evidence.

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

8. Each party shall have these rights:
a. To be represented by legal counsel or other person of the party’s choice b. To call and examine witnesses
c. To introduce evidence
d. To cross examine opposing witnesses on any matter relevant to the issues e. To impeach any witness regardless of which party first called the witness to testify f. To rebut the evidence against them

9. Oral evidence shall be taken only under Oath.

10. The hearing shall proceed in the following order unless the Chairperson, for special reason, otherwise directs:

a. The City shall be permitted to make an opening statement. b. The employee shall be permitted to make an opening statement. c. The City shall present its case in chief.
d. The employee may then present a defense and offer evidence in support. e. The parties may then, in order respectively, offer rebutting evidence, unless the Chairperson of the Board for good reason permits them to offer evidence upon their original case
f. Closing arguments or briefs shall be permitted at the discretion of the Chairperson of the Personnel Board.

11. The Personnel Board shall determine the relevance, weight and credibility of testimony and evidence and shall base their findings on the preponderance of evidence.

12. The Personnel Board shall render its “Findings, Recommendations and Conclusions” as soon as possible after the conclusion of the hearing and no later then ten (10) days after conducting the hearing unless otherwise stipulated by the parties. The Board’s Decision shall set forth the recommendations as to each of the charges and the reasons therefore.

13. The Personnel Board may recommend to the City Council the sustaining or rejecting of any or all of the charges filed against the employee. The Board may recommend sustaining, rejecting or modifying the disciplinary action invoked against the employee.

B. City Council Appeal Hearing

The decision of the Personnel Board is advisory only. The proposed decision shall be filed with City Council and served on the employee. If a suspension, dismissal or demotion is not sustained by the City Council, they shall set forth the recommended effective date the employee is to be reinstated, which may be any time on or after the date the disciplinary action went into effect. If the Council does not sustain or modifies a suspension, they shall set forth the effective dates of the modification, which may be any time on or after the date the suspension went into effect.

The matter is set before City Council at the next scheduled meeting that falls more than five days from the filing of the proposed decision. The City Council hearing shall be open unless

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025
the employee requests a closed hearing. The hearing shall consist of summary arguments by the City’s representative and the employee’s representative.

The City Council may recess to Closed Session to deliberate after the presentation of the summary arguments. The City Council announces in Public Session its determination; it may affirm, deny, or modify the Personnel Board’s recommendation. The determination of the City Council is final and binding.

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers/Stationary Engineers

13195104.1 DA003-025

APPENDIX E

PROCESS FOR RECLASSIFICATIONS

A. During November, December and January of each year, an employee may request once every thirty-six (36) months, a reevaluation of his/her job based on:

• significant changes in job content and/or
• significant discrepancies between job content and classification description, and/or responsibilities assigned.

The request must contain justification, and sh all be made to Human Resources, who will acknowledge the request within ten (10) day of receipt.

B. Depending on the nature of the request and the information submitted, the job analysis may include such techniques as:

• Comparison of information supplied in th e classification analysis to current job description
• Salary and job description survey of other cities that may have matching classifications • Interview with incumbent, immediate supervisor, and/or department head • Physical desk/job audit
• Analysis of similar classifications or positions in the City for equity purposes.

It is the City’s expectation that the job analysis will be completed wi thin 90 days. If the City is unable to complete the job analysis within this time frame, the Union will be contacted and provided an updated date of completion.

At the City’s discretion, an outside consultant may be retained to complete the reclassification analysis and make a recommendation to the City.

C. If an employee does not agree with Human Resources’ draft recommendation, they can request a meeting with Human Resources within ten (10) days of receiving the determination. The Human Resources Director will respond in writing with the final recommendation no later than ten (10) days after this meeting.

D. The final recommendation will be communicated via a memo with any supporting documentation from Human Resources to the City Manager. All recommendations are subject to the City Manager’s approval. In addition to the City Manager’s approval, reclassifications may be subject to approval by the Personnel Board and/or City Council.

Employees in the reclassification process may ha ve a representative present at the meeting with Human Resources regarding the reclassification results.

City Council Meeting Agenda Report Item # _____

Meeting Date: January 26, 2026

Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Plant Maintenance Unit

Recommended Action

That the City Council adopt by resolution the Memorandum of Understandings and salary schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Plant Maintenance Unit.

Discussion

The management “meet and confer” representatives designated by the City Council of the City of Daly City have met and conferred in good faith with the representatives of International Union of Operating Engineers Stationary Engineers Local 39 Plant Maintenance Unit and, as a result, have arrived at a Memorandum of Understanding concerning wages, hours and conditions of employment as follows:

Salary Increase:

• Effective the first full pay period of September 2025 - 3% salary increase • Effective the first full pay period of September 2026 - 3% salary increase • Effective the first full pay period of September 2027 - 3% salary increase

Equity Adjustment:

• Effective the first full pay period of September 2025 – 1% equity adjustment • Effective the first full pay period of September 2026 – 0.5% equity adjustment • Effective the first full pay period of September 2027 – 0.5% equity adjustment

Life Insurance:

The City-sponsored term life insurance amount will increase to $50,000.

Vision Reimbursement Program:

• Effective January 1, 2026, the above maximum calendar reimbursement for frames and lenses will increase to three hundred dollars ($300.00). • Effective January 1, 2027, the above maximum calendar reimbursement for frames and lenses will increase to three hundred and fifty dollars ($350.00). • Effective January 1, 2028, above maximum calendar reimbursement for frames and lenses will increase to four hundred dollars ($400.00).

City Council Agenda Report
Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Plant Maintenance Unit

Meeting Date: January 26, 2026

Bilingual Pay:

Effective January 1, 2026, bilingual Pay will increase to $150.00 per month. The City will determine the number of positions, the shifts, the eligible languages and the standards and procedures for certification of such pay.

Safety Eyewear:

Effective September 1, 2025, the City will provide reimbursement for City approved prescription safety eyewear, as needed. The City will purchase the safety eyewear upon the request of the employee.

Certification/Educational Incentive and Supplemental Pay:

The classifications of Warehouse Clerk and Lead Warehouse Clerk are eligible to receive CWEA Mechanical Technologist at 5% of base pay per grade effective on the first day of the pay period following verification of the Certificate by the City Manager or his/her designee.

Effective on the first day of the pay period following verification of the Certificate by the City Manager or his/her designee classifications in the Collection System (Collection System Operator I/II) and Plant Maintenance (Plant and Equipment Maintenance Electrician, Plant and Equipment Maintenance Mechanic, Senior Plant and Equipment Maintenance Mechanic, Plant Maintenance Worker, Plant Maintenance Mechanic I and Plant Operations Maintenance Worker I/II ) Divisions are eligible to receive 2.5% of base pay for possession of Grade 2 and additional 2.5% of base pay for possession of Grade 3 (total 5%) in another vocation (SWRCB or CWEA certification.

Maximum certification pay not to exceed twenty-five percent (25%) total.

Standby Pay:

Effective the first full pay period of September 2025 standby pay will be $105 per day.

Floating Holidays:

Employees shall be granted floating holidays every January 1st prorated based on the time period since the previous January 1st, and shall be calculated at the rate of 40 hours per twelve (12) months or a portion thereof on a pro-rated basis.

Fiscal Impact

Staff recommends appropriating a total of $252,290 for FY 2026 and $431,411 for FY 2027 for estimated increase in costs due to the contracts. Of the total, appropriations to the Water fund

City Council Agenda Report
Subject: Adoption of Memorandum of Understanding and Salary Schedules between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Plant Maintenance Unit

Meeting Date: January 26, 2026

would amount to $67,170 for FY 2026 and $148,410 for FY 2027 and appropriations to the Sanitation Fund would amount to $185,120 for FY 2026 and $283,001 for FY 2027.

Summary/Conclusion

Staff requests that the City Council adopt the Memorandum of Understanding between the City of Daly City and International Union of Operating Engineers Stationary Engineers Local 39 Plant Maintenance Unit.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Natalie Sakkal
Director of Human Resources

Attachment: Tracked Changes Local 39 Plant Maintenance MOU

MEMORANDUM OF UNDERSTANDING
between

CITY OF DALY CITY
and

INTERNATIONAL UNION OF OPERATING ENGINEERS
STATIONARY ENGINEERS LOCAL 39

Plant Maintenance Unit

September 1, 20252 through August 31, 20285

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers-Stationary Engineers Local 39 Plant Maintenance Unit
September 1, 20252 through August 31, 20285

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF DALY CITY
AND

INTERNATIONAL UNION OF OPERATING ENGINEERS
STATIONARY ENGINEERS LOCAL 39

PLANT MAINTENANCE UNIT

September 1, 20252 through August 31, 20285

The adjustments to wages, hours and conditions of employment that ar e set forth in this Memorandum have been discussed by and between th e bargaining representatives of the City of Daly City (hereinafter, "CITYCity") and the bargaining representatives of the International Union of Operating Engineers/Stationary Engineers Local 39 (hereinafter, “"Union"”), and shall apply to all employees and classifications of the City which are recognized as bargaining unit positions set forth in Appendix A.

The adjustments to wages, hours and conditions of employment that are set forth in the memorandum have been discussed in good faith and agreed upon as being an equitable adjustment of present wages, hours and conditions of employment, between the bargaining representatives of the City and the bargaining representatives of the Union. The Union agrees to recommend to their constituents for their favorable consideration a nd vote, all of the salary and fringe benefit adjustments as set forth herein; and the bargaining representatives of the City agree to recommend to the City Council that all of the adjustments as set forth herein be ad opted in full by the City Council in the same manner and procedure prescribed by law.

ARTICLE I – RECOGNITION

International Union of Operating Engineers St ationary Engineers Local 39 is recognized as exclusive representatives pursuant to the City of Daly City Employer-Employee Relations Resolution for all employees assigned to the cl assifications set forth in Appendix A which is attached and made a part hereof.

ARTICLE II – UNION MEMBERSHIP AND DUES

The Union may have the regular dues of its me mbers within a bargaining unit deducted from employees' paychecks under procedures prescrib ed by the City for such deductions. Dues deduction shall be based upon written authorizati on from the Union, and shall continue (1) until such authorization is revoked, in writing, by the Union; or (2) until the transfer of the employee to a unit represented by another employee organiza tion. The Human Resources Department and the Finance Department will work to provide that du es deductions are promptly terminated when an employee transfers out of union re presentation through a change in classification or status. The

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers-Stationary Engineers Local 39 Plant Maintenance Unit
September 1, 20252 through August 31, 20285

Union must indemnify the employer for any claims made by employees as the result of the payroll deductions.

ARTICLE III – UNION INFORMATION

The Union may use portions of a Department bulletin board under the following conditions:

1. All materials must be dated and must identify the Union that published them.

2. Unless special arrangements are made, materials posted will be removed thirty-one (31) days after the publication date.

3. The department reserves the right to determine where a bulletin board shall be placed and what portion of it is to be allocated to Union’s materials.

4. If the Union does not abide by these rules, it will forfeit its right to have materials posted on a Department bulletin board.

The parties recognize the responsibility of the City to maintain the work space in a manner that is consistent with City rules and the law. In the even t that material that viol ates these standards is placed on the bulletin board the City has the right to remove it. The City shall notify the Union in the event that material is removed by the City from the Union bulletin board.

ARTICLE IV - SALARIES

A. Cost of Living AdjustmentsSalary Increases

• Effective September 13, 20252, the parties agree to a fourthree percent ( 34.0%) cost of living salary increase for all bargaining membersshall be applied to the s . (See Appendix B)

• Effective September 12, 20263, the parties agree to a four three percent (34.0%) cost of livingsalary increase for all bargaining members (See Appendix B-1)

• Effective September 1411, 20274, the parties agree to a threefour percent (34.0%) cost of livingsalary increase for all bargaining members. (See Appendix B-2)

B. Equity Adjustments

Memorandum of Understanding
City of Daly City and International Union of Operating Engineers-Stationary Engineers Local 39 Plant Maintenance Unit
September 1, 20252 through August 31, 20285