MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF HAWTHORNE
AND THE
HAWTHORNE EXECUTIVE GROUP
(HEG)
EFFECTIVE
July 1, 2024 through June 30, 2027
Table of Contents
ARTICLE 1 - INTRODUCTION ............................................................................................................1 ARTICLE 2 - RECOGNITION...............................................................................................................1 ARTICLE 3 - NO DISCRIMINATION, NO HARASSMENT............................................................1 ARTICLE 4 - COMPENSATION...........................................................................................................1 Section 4.1 - Classifications.......................................................................................................1 Section 4.2 - Monthly Salary Schedules..............................................................................2 Section 4.3 - Initial Salary............................................................................................................2 Section 4.4 - Salary Increases....................................................................................................2 Section 4.5 - Advancement in Salary (Step Advancement)................................................3 Section 4.6 - Definition of "Work Week" and "Hourly Rate"..........................................3 Section 4.7 - Date of Payroll Payments ...................................................................................4 Section 4.8 - Promotions.............................................................................................................4 Section 4.9 - Longevity Pay........................................................................................................4 Section 4.10 - Educational Pay..................................................................................................5 ARTICLE 5 - INSURANCE BENEFITS..................................................................................................5 Section 5.1 - Employee Insurance ............................................................................................5 Section 5.2 - Retiree Medical Insurance..................................................................................6 ARTICLE 6 - BENEFITS RELATED TO TIME .....................................................................................7 Section 6.1 - Fixed Holidays.......................................................................................................7 Section 6.2 - Floating Holidays..................................................................................................8 Section 6.3 - Administrative Leave...........................................................................................8 Section 6.4 - Vacation Leave......................................................................................................8 Section 6.5 - Sick Leave ..............................................................................................................9 Section 6.6 - Paid Injury On Duty Leave................................................................................10 ARTICLE 7 - ACTING PAY....................................................................................................................10 ARTICLE 8 - BEREAVEMENT LEAVE ...............................................................................................11 ARTICLE 9 - SPECIAL PAY PROVISIONS........................................................................................11 Section 9.1 - Educational Reimbursement ...........................................................................11 Section 9.2 - Auto Allowance ...................................................................................................11 Section 9.3 - Merit Raises..........................................................................................................11 ARTICLE 10 - DEFERRED COMPENSATION ..................................................................................12 ARTICLE 11 - CalPERS.........................................................................................................................12 Section 11.1 - CalPERS Pick-Up..............................................................................................12 Section 11.2 - Retirement Formulas.......................................................................................12 Section 11.3 - Optional CalPERS Contract Amendment...................................................12 ARTICLE 12 - CONTINUATION OF BENEFITS................................................................................12 ARTICLE 13 - JURY DUTY ...................................................................................................................13 ARTICLE 14 - MEDICAL EXAMINATIONS ........................................................................................13 ARTICLE 15 - SEVERABI LITY............................................................................................................13 ARTICLE 16 - OTHER TERMS.............................................................................................................13 Section 16.1 ..................................................................................................................................13 Section 16.2 ..................................................................................................................................13 Section 16.3 ..................................................................................................................................13 Section 16.4 ..................................................................................................................................13 Section 16.5 ..................................................................................................................................14 Section 16.6 - Reopener ............................................................................................................14 ARTICLE 17 - TERM OF THE AGREEMENT ....................................................................................15 EXHIBIT A.................................................................................................................................................16 EXHIBIT B.................................................................................................................................................17 Attachment A – Resolution 5342 Jury Duty....................................................................................20 1 ARTICLE 1 - INTRODUCTION
It is the understanding of the undersigned representatives of the Hawthorne Executive Group and the representatives of the City of Hawthorne that:
This Memorandum of Understanding (MOU) incorporates any previous Memoranda of Understanding governing wages, hours, terms, and conditions of employment for the employees described in this bargaining unit. The wages, hours, and terms and conditions of employment as contained in this agreement shall be recommended to the Hawthorne City Council and, subject to City Council approval, shall be implemented by the appropriate ordinance, resolution, or other official action. Unless otherwise indicated, all provisions of this MOU are to be effective July 1, 2024.
ARTICLE 2 - RECOGNITION
The City of Hawthorne recognizes the Hawthorne Executive Group as the sole and exclusive bargaining agent for the purposes of establishing salaries, wages, hours, and other conditions of employment for those employees assigned to classifications included in this MOU.
ARTICLE 3 - NO DISCRIMINATION, NO HARASSMENT
Both parties to this MOU agree not to discriminate against any employee or applicant because of age, sex, race, national origin, religion, color, ancestry, marital status, sexual orientation, physical or mental disability, medical condition, and/or union membership and activity or any other protected classification. Additionally, the City expects and requires all employees to treat one another with dignity and respect. Harassment of fellow employees is a violation of law. No employment decision may be made based upon an employee's submission to or rejection of such conduct. Any employee who believes that they are the victim of such harassment, whether sexual, racial, ethnic, or religious, is required to immediately report the conduct to the City Manager or designee. Any employee who engages in such conduct is subject to disciplinary action, including immediate discharge.
ARTICLE 4 - COMPENSATION
Section 4.1 - Classifications
Salary ranges are assigned as follows:
Classifications Ranges
Airport Manager 11
Assistant Building Regulations Manager 19
Assistant City Attorney 35
Community Services Manager 19
Deputy City Attorney 25
Deputy Director of Building Safety 25
Deputy Director of Community Services 25
Deputy Director of Economic Development 25
2 Deputy Director of Finance
(Licensing, Accounts Payable & Receivable 25
Deputy Director of Finance
(Payroll, General Ledger & Grants) 25
Deputy Director of Information Technology Systems 25
Deputy Director of Public Works 25
Director of Building Safety/Plan Check Engineer 35
Director of Community Services 35
Director of Finance (Payroll, General Ledger & Grants) 45 Director of Housing/CDBG 45
Director of Human Resources 45
Director of Planning 45
Director of Public Works/City Engineer/Airport 45
Finance Manager 19
Housing Manager 19
Human Resources Manager 19
Information Systems Manager 19
Planning Manager 19
Public Works Manager 19
Revenue & Accounts Payable Manager 19
Senior Assistant City Attorney 43
Section 4.2 - Monthly Salary Schedules
See Exhibits A & B
Section 4.3 - Initial Salary
The initial compensation for any employee covered under this MOU shall be Step “A,” except that the City Manager may recruit and appoint personnel at a higher Step.
Section 4.4 - Salary Increases
A. Employees covered in classifications represented by this MOU, shall receive the following pay increases based on the adjustments to the Salary Schedules as follows:
1. Effective July 1, 2024, the Directors of Finance, Housing/CDBG, Human Resources, Planning, and Public Works/City Engineer will receive a four percent (4%) increase.
2. Effective July 1, 2025, the Directors of Finance, Housing/CDBG, Human Resources, Planning, and Public Works/City Engineer will receive a four percent (4%) increase.
3. Effective July 1, 2026, the Directors of Finance, Housing/CDBG, Human Resources, Planning, and Public Works/City Engineer will receive a four percent (4%) increase. 3 4. Effective July 1, 2024, all other classifications will receive a 5% increase.
5. Effective July 1, 2025, all other classifications will receive a 5% increase.
6. Effective July 1, 2026, all other classifications will receive a 5% increase.
Section 4.5 - Advancement in Salary (Step Advancement)
A. Base Salary Steps - A through L
Advancement through the base salary steps shall occur after an employee has been receiving compensation at a particular step for twelve (12) months. Each employee shall automatically move to the next higher step after completing twelve months unless action is taken by the City Council or the City Manager to disapprove the increase, or unless the employee's performance is substandard. For example, all employees in step letter "A" advance to step letter "B" only after receiving compensation at step letter "A" for twelve (12) months.
B. An employee shall advance from step "E" to step "F" upon satisfactory completion of twelve (12) months of service with the City at step "E." Step "F" shall be 5% higher than step "E." Effective June 30, 2014, an employee may advance to step either G, H, I, or J under the following conditions:
An employee shall advance from Step "F" to Step "G" upon satisfactory completion of twelve (12) months of service with the City at Step "F." Step "G" shall be three percent (3%) higher than Step "F."
An employee shall advance from step "G" to step "H" upon satisfactory completion of twelve (12) months of service with the City at step "G". Step "H" shall be three percent (3%) higher than step "G."
An employee shall advance from Step "H" to Step "I" upon satisfactory completion of twelve (12) months of service with the City at Step "H." Step "I" shall be three percent (3%) higher than Step "H."
An employee shall advance from Step "I" to Step "J" upon satisfactory completion of twelve (12) months of service with the City at Step "I." Step "J" shall be three percent (3%) higher than Step "I."
An employee shall advance from Step "J" to Step "K" upon satisfactory completion of twelve (12) months of service with the City at Step "J." Step "K" shall be three percent (3%) higher than Step "J"
An employee shall advance from Step "K" to Step "L" upon satisfactory completion of twelve (12) months of service with the City at Step "K." Step "L" shall be three percent (3%) higher than Step "K"
Section 4.6 - Definition of "Work Week" and "Hourly Rate" A. All employees covered under this MOU shall have a regularly scheduled recurring workweek of forty (40) hours unless the City Council determines otherwise by motion, 4 resolution, or ordinance.
B. The hourly pay for all employees covered under this MOU shall be calculated by use of the following formula:
Hourly rate of pay = Annual Salary
2,080 Hours
Section 4.7 - Date of Payroll Payments
All employees covered under this MOU shall be paid bi-weekly.
All step advancements and longevity allowances shall become effective on the employee’s anniversary date.
All promotions, changes in classification, and additional incentives that result in change in pay shall become effective at the start of the payroll period.
Section 4.8 - Promotions
Whenever an employee is promoted to a higher classification outlined in this agreement, that employee shall receive the rate of compensation of the first step of the base pay range for the new classification or the lowest step of the base pay range that provides an increase of at least four and one-half percent (4-1/2%) of the employee's base pay, prior to promotion.
Section 4.9 - Longevity Pay
A. Commencing on July 1, 2017, Longevity Pay shall be calculated as follows:
1. Employees who have reached five (5) years of service shall receive three percent (3%) above their base pay as reflected in Exhibits A & B.
2. Employees who have reached ten (10) years of service shall receive four percent (4%) above their base pay as reflected in Exhibits A & B.
3. Employees who have reached fifteen (15) years of service shall receive five percent (5%) above their base pay as reflected in Exhibits A & B.
B. Longevity Pay is a special compensation payment in addition to base pay. The provisions in this Section regarding Longevity Pay are not cumulative. For example, total longevity pay after fifteen (15) years of service is five percent (5%), NOT twelve percent (12%). Longevity pay is in addition to all other compensation and shall be automatic without prior approval by the City Manager.
5 C. A regular full-time employee represented by this MOU who has completed twenty-six (26) years of accumulated service with the City shall receive longevity pay in an amount equal to fifteen percent (15%) of base pay.
Section 4.10 - Educational Pay
Effective July 1, 2017, the City shall provide educational incentives in accordance with the provisions outlined below:
A. Upon presentation of the following national or state-recognized license and/or accredited master's degree (accreditation shall be by a national or regional accreditation and from a college or university that is recognized by the Secretary of the United States Department of Education), an employee shall be eligible to receive the following percentages of base pay for each educational achievement increment, effective the beginning of the next payroll period:
Master's degree and/or State License = five· percent (5.0%) of base pay
1. An employee receiving educational incentive pay shall be entitled to no more than five percent (5%) for a Master's degree, regardless of the number of Master's degrees received, and no more than five percent (5%) for national or state recognized licenses, regardless of the number of national or state-recognized licenses received.
2. National or state-recognized licenses or degrees required by the City as minimum qualifications for the employee's position are not considered eligible for qualification to receive the Educational Pay contained herein.
ARTICLE 5 - INSURANCE BENEFITS
Section 5.1 - Employee Insurance
The City shall continue to make the following insurance plans available to all regular full-time employees.
A. Each regular full-time employee covered by this MOU shall be entitled to enroll in the insurance plans as follows:
1. Enrollment in a medical insurance plan (required*). Effective the pay period starting September 25, 2021, the City shall pay the premium amount equal to the "Employee +1 Dependent" coverage level for the plan in which the employee is enrolled. Employees enrolled in the "Employee +2+ Dependents" coverage level shall be responsible for paying the balance of the monthly premium amount after the "Employee +1 Dependent" premium amount has been subtracted.
Employees who elect not to enroll in a medical plan offered by the City will be eligible to receive an "in lieu of" amount of eight hundred dollars ($800) per month for opting out of coverage. In order to receive the eight hundred dollars ($800) per month amount, an employee must provide the following: (1) proof that the employee and all individuals for 6 whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with the City's plan year to which the opt-out applies ("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 thirty (30) days after the start of the plan year. The opt-out payment cannot be made, and the City will not, in fact, make a payment if the employer knows that the employee or tax family member does not have such alternative coverage or if the conditions in this paragraph are not otherwise satisfied.
2. The City shall pay such premiums to enroll and cover Hawthorne Executive Group employees in the following plans of insurance:
• Basic Life and Accidental Death and Dismemberment (AD&D) Insurance at a fifty thousand dollar ($50,000) coverage level per employee. • Enrollment in an Employee Assistance Program (required). • Enrollment in a Long-Term Disability Insurance Plan (LTD) (required). • Enrollment in a Dental Insurance Plan (optional).
• Enrollment in Additional Life Insurance Plan (optional). • Vision Coverage (optional)—Effective the pay period starting September 25, 2021, the City will contribute the monthly premium amount for "Employee + Family" coverage.
B. The City shall continue to make available a Flexible Spending Account Plan pursuant to the provisions of Sections 125 and 129 of the Internal Revenue Code which allows employees to allocate a designated portion of their salaries to a Flexible Spending Account used to pay (1) health and dental premiums, (2) medical expenses not paid by a health insurance carrier and/or (3) child or dependent care expenses. Any amounts so allocated but not expended for those purposes shall be forfeited by the employee. Participation in this benefit is optional.
Section 5.2 - Retiree Medical Insurance
A. Regular full-time employees who have retired from a classification covered by this MOU and who are receiving retirement benefits from CalPERS shall be entitled to maintain enrollment in the City's health plan, as per CalPERS's established guidelines and rules. 7 This benefit shall begin upon the employee's retirement from the City of Hawthorne and continue until the employee becomes ineligible for coverage under the City's CalPERS Health Benefits Plan.
For each such employee, the City shall pay an amount equal to employee-only coverage for the plan in which the employee is enrolled, less any administrative fees required by the plan. If the employee is not enrolled in a health plan at the time of retirement, he/she shall not be eligible for this benefit.
B. A retiree may, at the retiree's own and sole expense, enroll his/her spouse and/or qualified dependents in any of the medical plans provided under CalPERS.
ARTICLE 6 - BENEFITS RELATED TO TIME
Section 6.1 - Fixed Holidays
All regular full-time employees are entitled to nine (9) hours of paid leave for holidays observed Monday through Thursday and eight (8) hours for holidays observed on Fridays.
The City recognizes the holidays listed on the fixed holiday schedule below. City Hall employees represented by this MOU follow the holiday schedule that coincides with when the holiday falls on an off Friday, the holiday is observed on the Thursday before (or the Wednesday before if holidays fall on a consecutive Thursday and Friday and the Friday is an off day). Any holiday that falls on a Saturday will be observed on the preceding Friday and any holiday that falls on a Sunday will be observed on the next following Monday. In the event two holidays fall on a consecutive Saturday and Sunday, the City Manager will determine what best suits City Hall closure. Starting in calendar year 2021, the City shall publish and issue in the month of October of the preceding year, the annual Holiday Schedule for City Hall employees.
Holiday Acknowledged
New Year’s Day January 1st
Martin Luther King Day Third Monday of January
President’s Day Third Monday of February
Cesar Chavez Day March 31st
Memorial Day Last Monday of May
Juneteenth June 19th
Independence Day July 4th
Labor Day First Monday in September
Indigenous Day (formerly Columbus Day) Second Monday of October Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Day After Thanksgiving Immediate Friday after Thanksgiving Christmas Eve December 24th
Christmas Day December 25th
New Year’s Eve December 31st
8 Section 6.2 - Floating Holidays
Effective September 25, 2021, all regular full-time employees covered by the MOU shall receive an additional ten (10) hours of floating holiday for a total of fifty (50) hours of personal holidays per year. Upon the commencement of a calendar year in which a holiday falls on an otherwise scheduled closed City Hall Friday, the employee shall be entitled to an additional eight (8) hours of floating holiday time for each day.
All full-time employees covered under this MOU who are hired prior to September 1 in a given year are entitled to fifty (50) hours of floating holiday time during said year. Any employee hired on or after September 1 but prior to December 1 is entitled to twenty-five (25) hours personal holiday hours during said year.
Floating holiday hours shall be taken as time off with pay; however, a minimum of twenty-five (25) hours must be taken in the calendar year in which earned. Twenty-five (25) hours of floating holiday time may be carried over into the next calendar year. If the work schedule changes permanently, floating hours will automatically adjust to the maximum number of hours per day.
These floating holiday hours shall be taken at a time mutually convenient to the employee's department.
All regular full-time employees covered under this MOU who have completed twenty-six (26) years of accumulated service with the City shall cease to be entitled to floating holiday leave.
Section 6.3 - Administrative Leave
In recognition of the absence of overtime compensation, all regular full-time employees covered under this MOU shall be entitled to administrative leave time as follows:
A. Effective July 1, 2024, all regular full-time employees shall receive an additional thirty (30) hours of administrative leave for a total of one hundred thirty (130) hours per calendar year. Hours accrued shall be on an unlimited basis.
B. Administrative leave shall not be convertible to cash or deferred compensation. Any accumulated administrative leave shall be forfeited at the time of separation from employment with the City.
C. Administrative leave time may be taken at any time for any reason, subject to prior approval, which shall not be unreasonably withheld.
Section 6.4 - Vacation Leave
All regular full-time employees covered under this agreement shall be entitled to vacation leave with pay as follows:
A. All regular full-time employees shall accrue vacation leave at the rate of 3.08 hours per pay period through the first five (5) years of employment.
B. At the completion of five (5) years of full-time service, regular full-time employees shall accrue vacation leave at the rate of 5.7 hours per pay period. 9 C. At the completion of ten (10) years of full-time service, regular full-time employees shall accrue vacation leave at the rate of 6.7 hours per pay period.
D. At the completion of fifteen (15) years of service, regular full-time employees shall accrue vacation leave at the rate of 7.7 hours per pay period.
E. All regular full-time employees covered under this MOU who have completed twenty-six (26) Years of accumulated service with the City shall accrue vacation leave at 1.24 hours per pay period.
F. Employees are entitled to carry over forty (40) hours of their vacation time into the year following the year in which it is earned.
G. Employees covered under this MOU shall arrange their schedule of vacations with their department head or City Manager.
H. Upon discharge or termination, employees are entitled to be paid for all accrued unused vacation.
Section 6.5 - Sick Leave
A. Sick Leave Accrual
All regular full-time employees shall accrue sick leave at the rate of 3.69 hours for each biweekly pay period in which the employee actually worked or was on paid leave status for a minimum of forty (40) hours.
1. Per California State Law, Effective January 1, 2024, all employees must be granted a minimum of 40 hours of sick leave per year. This supersedes the previous agreement below.
Effective January 1, 2024, all regular full-time employees covered under this MOU who have completed twenty-six (26) years of accumulated service with the City shall accrue forty (40) hours of sick leave per year at the rate of 1.04 hours per biweekly pay period.
B. Sick Leave Usage
1. Employees may not take paid sick leave before the completion of thirty (30) days of employment from date of hire.
2. An employee eligible for paid sick leave shall be granted such leave for the following reasons:
a. Illness or injury that has resulted in the employee's inability to perform normal duties. An employee who is unable to report to work due to illness or injury, shall notify the appropriate party, as soon as reasonably possible, of that fact and give that party a telephone number and/or address at which the employee can be reached. In addition, an employee shall notify the appropriate party of their status at least every other scheduled shift.
10 b. Health and dental appointments during scheduled working hours. c. Disability caused by pregnancy or childbirth.
d. Employees may use accrued sick leave for reasons other than personal illness or injury. Such use of sick leave shall be limited to 48 hours.
3. The use of sick leave under this agreement requires the prior approval of the Department Head or City Manager.
4. Additional paid leave may be granted, under special circumstances, when the employee's presence is necessary during the convalescence of a spouse or dependent. Such leave must be approved by the City Manager.
C. Provisions and Payment of Sick Leave are as follows:
1. All regular full-time employees may cash out up to one hundred and twenty (120) hours of sick leave annually. The compensation received for sick leave shall be equal to the employee's current base rate of pay. The form of such compensation shall be at the employee's discretion, either in cash and/or as a contribution to his/her deferred compensation account provided the annual limit is not exceeded.
2. The annual cash out of sick leave shall occur on the first payroll date in December.
3. Voluntary Quit - Personal Leave Payment - Any employee who voluntarily resigns from the City after having completed seven (7) years of such service, shall receive fifty percent (50%) of the value of said employee's accumulated sick leave.
4. Retirement - Upon actual retirement from the City, employees covered under this agreement shall receive a 100% payoff of unused sick leave.
Section 6.6 - Paid Injury On Duty Leave
Effective September 25, 2021, any regular full-time employee covered under this agreement who is involved in a work-related illness or injury resulting in absenteeism, shall receive full pay for the first ten (10) work days without loss of accumulated sick leave or sick leave accrual.
ARTICLE 7 - ACTING PAY
Employees who temporarily fill a vacancy in the absence of a Department Head or City Manager shall receive "acting pay" equal to an additional five percent (5%) of base pay, beginning with the first day of the vacancy and with the approval of the City Manager. Acting pay shall be provided for no more than three (3) months in any fiscal year (July 1- June 30th). A vacancy includes retirement, resignation, or termination of a budgeted and filled position. An absence includes unavailability due to illness, vacation, or other approved leave.
To the extent provided by CalPERS regulations, employee out-of-class appointments to an upgraded position or acting in a higher classification to a vacant position shall be limited to nine hundred sixty (960) hours per fiscal year (July 1 to June 30). A vacant position, per this provision, excludes a position that is temporarily unavailable due to another employee's leave of absence. 11 ARTICLE 8 - BEREAVEMENT LEAVE
In the event of the death of a member of the immediate family, defined as spouse, child, stepchild, mother, mother-in-law, stepmother, father, father-in-law, stepfather, grandparent, sister, brother, or registered domestic partner with the State of California. A regular full-time employee may be absent for the purpose of arranging for and attending the funeral for five (5) consecutive working days without loss of pay and not charged for sick leave.
ARTICLE 9 - SPECIAL PAY PROVISIONS
Section 9.1 - Educational Reimbursement
It shall be the policy of the City to encourage all employees to improve their skills, ability and knowledge through enrollment in courses in outside educational institutions. Accordingly, all employees covered under this MOU shall be eligible for 100% reimbursement of the cost of tuition, fees, and books incurred in outside vocational or academic courses of instruction, subject to the following conditions:
A. The reimbursement request shall be submitted and approved by the City Manager prior to enrollment.
B. A minimum semester/quarter grade of:
1. "C" on an A,B,C,D, & F scale, or
2. 70% on a 100% scale; or
3. 2.0 on a 4.0 scale; or
4. Pass on a pass/fail scale; or
5. Equivalent to one of the above.
C. Receipts for reimbursable items must be submitted.
D. This program is designed to reimburse employees for school expenses that are not funded or partially funded from other external sources, including but not limited to G.I. educational benefits.
Thus, the City shall not reimburse expenses, which, in its sole judgment, are adequately provided for through other benefits available to the employee.
Section 9.2 - Auto Allowance
With prior approval of the City Council or the City Manager, an employee may receive that amount of reimbursement per mile for the use of the employee's private automobile for City business in an amount determined by the IRS reimbursement rate then in effect.
Section 9.3 - Merit Raises
In addition to base pay, the City Manager, subject to veto by the City Council, may grant a merit raise of four percent (4%) to any employee who has rendered exceptional work performance to the City.
12 ARTICLE 10 - DEFERRED COMPENSATION
The City will contribute two hundred seventy-five dollars ($275) per month toward an employee's 457(b) deferred compensation plan account. In addition, the City will match an employee's contribution to deferred compensation up to fifty dollars ($50) per month.
ARTICLE 11 - CalPERS
Section 11.1 - CalPERS Pick-Up
Effective September 1, 2011, the City shall pay to CalPERS an amount equal to eight (8%) of the normal contribution as Employer Paid Member Contribution (EPMC) and report the same percent (value) of compensation earnable as additional compensation for employees who are "Classic Members" of CalPERS. Pursuant to the provisions under 414(h)(2) of the Internal Revenue Code the eight percent (8%) contribution will be paid on a pre-tax basis.
Section 11.2 - Retirement Formulas
For its "miscellaneous" employees, the City shall continue to provide the 3% @ age 60 retirement formula.
1. Classic Members
A. One-year highest compensation (Section 20024.2).
B. Military service is credited as public service (Section 20930.3).
C. 1959 Survivors Benefit (Section 21382.4).
D. Post-retirement survivor allowance to continue after remarriage (Section 21266).
E. Pre-retirement death benefit (Section 21365.6).
F. 3% @ age 60 retirement formula (Section 21354).
Section 11.3 - Optional CalPERS Contract Amendment
1. New Members (PEPRA)
A. Retirement benefit based on an average of three (3) highest years of compensation with the City.
B. Employees hired on or after January 1, 2013, concede to 2% @after 62 retirement formula.
C. The employee shall pay the employer Paid Member Contribution (EMPC).
D. The term “New Members” shall have the same meaning as that term defined by and in the Public Employees’ Pension Reform Act (PEPRA).
ARTICLE 12 - CONTINUATION OF BENEFITS
Benefits not necessarily specifically enumerated herein that have previously been provided by the City shall continue unless amended or deleted herein. This provision includes but is not limited 13 to Bereavement Leave, Bilingual Pay, Sick Leave, Holidays, Group Insurance, Educational Reimbursement, Training and Professional Development, Longevity Pay, Retirement System, and Auto Allowance.
ARTICLE 13 - JURY DUTY
All full-time employees covered by this MOU shall have time off from employment with pay in order to fulfill their obligations of citizenship by the performance of jury duty. As authorized by the City Council in Resolution No. 5342 (as Attachment A), all full-time employees who are summoned to serve as trial jurors will be paid their regular salary during the period they are required to serve as trial jurors, but not for any period in excess of ten(10) days. All fees, except travel expenses, received for jury duty are to be turned over to the City Treasurer and shall be deposited into the General Fund.
ARTICLE 14 - MEDICAL EXAMINATIONS
The City Manager shall establish procedures by which the City shall provide all full-time employees covered under this MOU a complete medical examination once during each calendar year.
ARTICLE 15 - SEVERABI LITY
Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this MOU shall remain in full force and effect for the duration of the agreement.
ARTICLE 16 - OTHER TERMS
Section 16.1 - Should the City Council declare a state of emergency due to a natural disaster during the contract period of July 1, 2024 - June 30, 2027, the HEG retains the right to meet and confer over the impact of wages for its membership.
Section 16.2 - The City agrees that during the term of this agreement, there will be no workforce reductions, eliminations, or consolidations directly against any member and/or classification within the Hawthorne Executive Group.
Section 16.3 - Upon notification of retirement to the City Manager, the employee will have the option, in lieu of an immediate lump sum cash out of accrued leave, to remain on the payroll for a period not to exceed three (3) months. During this period, the employee will continue to be paid utilizing time from their current leave balances.
While on the payroll for a period not to exceed three (3) months, the employee will cease to accrue any additional leave time. During the period that the employee remains on payroll prior to their retirement, the employee will be available to respond to any inquiries or provide any information as requested by the City Manager.
Except as provided herein, it is understood by the parties that they have met and conferred to agreement on all items within the scope of representation for the period.
Section 16.4 - Terms, working conditions, and all other language within this MOU will continue after it expires until a new MOU is ratified.
14 Section 16.5 - The City Manager is authorized by the City Council to offer a three-month severance agreement for salary only to an employee who is voluntarily resigning from employment. Such resignation shall be without cause. The severance agreement shall be put into effect by the employee's written letter of resignation and signed Release and Waiver, provided by the City, against any and all claims, known or unknown.
Section 16.6 - Reopener
As soon as practicable following the City Council's adoption of this MOU, the City, and the Association agree to reopen negotiations over changing the procedure for cashing out or selling back to the City leave balances, including, but may not be limited to, the optional cash-out provisions set forth in Article 6
City will not agree to extend the same economic benefit(s) as it may not be applicable and/or appropriate to the HEG position. City agrees to reopen for the purpose of discussing the application and appropriateness of the benefits(s).
15 ARTICLE 17 - TERM OF THE AGREEMENT
This MOU shall be in full force and effect from July 1, 2024, up to and including June 30, 2027.
The parties reserve the right, upon mutual agreement to meet and confer, in good faith, with respect to any subject or matters within the scope of representation, during the term of this MOU.
The parties jointly agree to recommend the provisions of this MOU to the City Council for its adoption, and, if adopted, to abide by its provisions for the term hereof.
Representing:
THE HAWTHORNE EXECUTIVE GROUP
____________________________
Kimberly Mack
HEG Board President
Representing:
THE CITY OF HAWTHORNE
____________________________
Gary Tomatani
Chief of Police
16 EXHIBIT A
HAWTHORNE EXECUTIVE GROUP
MONTHLY SALARY SCHEDULE FOR DEPARTMENT HEADS
(Finance, Housing/CDBG, Human Resources, Planning,
and Public Works/City Engineer)
EFFECTIVE JULY 1, 2024 - JUNE 30, 2025
Note: Steps A to J - 4% increase over the Salary Schedule effective 7/1/2023 New steps: Step K - 3% increase over Step J; Step L - 3% increase over Step K Range A B C D E F G H I J K L
Munis
Equivalent 0 1 2 3 4 5 6 7 8 9 10 11
45 10,626 11,066 11,538 12,022 12,527 13,154 13,548 13,955 14,374 14,805
15,250
15,707
EFFECTIVE JULY 1, 2025 - JUNE 30, 2026
Note: 4% increase over the Salary Schedule effective 7/1/2024 Range A B C D E F G H I J K L
Munis
Equivalent 0 1 2 3 4 5 6 7 8 9 10 11
45 11,051 11,508 11,999 12,503 13,028 13,680 14,090 14,513 14,949 15,398 15,860 16,335 EFFECTIVE JULY 1, 2026 - JUNE 30, 2027
Note: 4% increase over the Salary Schedule effective 7/1/2025 Range A B C D E F G H I J K L
Munis
Equivalent 0 1 2 3 4 5 6 7 8 9 10 11
45 11,493 11,969 12,479 13,003 13,549 14,227 14,654 15,093 15,547 16,014 16,494 16,989 17 EXHIBIT B
HAWTHORNE EXECUTIVE GROUP
MONTHLY SALARY SCHEDULE
EFFECTIVE JULY 1, 2024 - JUNE 30, 2025
Note: Steps A to J - 5% increase over the Salary Schedule effective 7/1/2023 New steps: Step K - 3% increase over Step J; Step L - 3% increase over Step K Range A B C D E F G H I J K L
Munis
Equivalent 0 1 2 3 4 5 6 7 8 9 10 11
1 6,456 6,713 6,984 7,266 7,562 7,939 8,178 8,424 8,676 8,937 9,205 9,481 3 6,570 6,831 7,107 7,397 7,695 8,080 8,322 8,571 8,828 9,093 9,366 9,647 5 7,349 7,649 7,966 8,292 8,634 9,066 9,338 9,617 9,906 10,203 10,509 10,824 7 7,480 7,786 8,111 8,444 8,792 9,232 9,509 9,794 10,088 10,391 10,703 11,024 9 7,744 8,060 8,386 8,732 9,092 9,547 9,833 10,128 10,432 10,745 11,067 11,399 11 7,882 8,207 8,537 8,891 9,259 9,721 10,013 10,313 10,622 10,941 11,269 11,607 13 8,677 9,028 9,404 9,792 10,200 10,710 11,031 11,361 11,702 12,053 12,415 12,787 15 8,834 9,196 9,576 9,974 10,387 10,905 11,233 11,569 11,916 12,275 12,643 13,022 17 9,120 9,496 9,889 10,298 10,728 11,263 11,601 11,949 12,308 12,678 13,058 13,450 19 9,288 9,669 10,072 10,492 10,924 11,471 11,815 12,170 12,534 12,910 13,297 13,696 21 9,491 9,888 10,296 10,723 11,172 11,731 12,083 12,446 12,818 13,204 13,600 14,008 23 9,668 10,068 10,484 10,923 11,380 11,949 12,308 12,678 13,058 13,451 13,854 14,270 25 9,693 10,091 10,507 10,940 11,421 11,991 12,351 12,722 13,103 13,497 13,902 14,319 27 9,871 10,280 10,703 11,142 11,633 12,215 12,581 12,959 13,348 13,748 14,160 14,585 29 9,890 10,298 10,729 11,177 11,651 12,233 12,600 12,978 13,368 13,769 14,182 14,607 31 10,074 10,492 10,927 11,387 11,866 12,459 12,834 13,218 13,615 14,024 14,445 14,878 33 10,093 10,515 10,958 11,414 11,895 12,490 12,865 13,251 13,649 14,058 14,480 14,915 35 10,281 10,711 11,160 11,626 12,117 12,723 13,104 13,498 13,902 14,319 14,748 15,191 37 10,298 10,728 11,172 11,649 12,138 12,745 13,128 13,522 13,928 14,346 14,777 15,220 39 10,492 10,924 11,380 11,864 12,364 12,982 13,373 13,774 14,187 14,612 15,050 15,502 41 10,515 10,958 11,414 11,895 12,396 13,016 13,406 13,810 14,223 14,650 15,089 15,542 43 10,711 11,160 11,626 12,117 12,628 13,260 13,658 14,068 14,489 14,924 15,371 15,833 45 10,728 11,172 11,649 12,138 12,647 13,280 13,678 14,089 14,512 14,948 15,396 15,858 47 10,924 11,380 11,864 12,364 12,885 13,529 13,936 14,354 14,784 15,228 15,685 16,156 49 11,131 11,652 12,146 12,658 13,191 13,851 14,266 14,694 15,134 15,588 16,056 16,538 51 11,338 11,871 12,373 12,894 13,442 14,114 14,537 14,973 15,422 15,885 16,362 16,853 53 11,660 12,142 12,664 13,199 13,759 14,448 14,882 15,328 15,787 16,260 16,748 17,251 55 11,878 12,372 12,902 13,449 14,022 14,723 15,165 15,620 16,088 16,571 17,068 17,580 57 12,290 12,808 13,413 13,918 14,511 15,237 15,693 16,165 16,650 17,150 17,664 18,194 59 12,520 13,050 13,664 14,181 14,782 15,521 15,986 16,466 16,960 17,469 17,993 18,533 61 12,994 13,544 14,119 14,722 15,350 16,118 16,602 17,100 17,613 18,140 18,684 19,245 63 13,223 13,783 14,370 14,985 15,625 16,407 16,900 17,406 17,928 18,465 19,019 19,590 65 13,738 14,322 14,930 15,573 16,237 17,049 17,560 18,087 18,630 19,189 19,764 20,357 67 13,994 14,593 15,216 15,869 16,545 17,373 17,893 18,431 18,983 19,552 20,139 20,743 69 14,526 15,147 15,793 16,469 17,179 18,039 18,580 19,137 19,711 20,303 20,912 21,539 18 EFFECTIVE JULY 1, 2025 - JUNE 30, 2026
Note: 5% increase over the Salary Schedule effective 7/1/2024 Range A B C D E F G H I J K L
Munis
Equivalent 0 1 2 3 4 5 6 7 8 9 10 11
1 6,779 7,048 7,333 7,629 7,940 8,336 8,587 8,845 9,110 9,383 9,665 9,955 3 6,898 7,173 7,463 7,767 8,080 8,484 8,738 9,000 9,270 9,548 9,834 10,129 5 7,716 8,032 8,365 8,706 9,066 9,519 9,805 10,098 10,401 10,713 11,034 11,365 7 7,854 8,175 8,517 8,866 9,231 9,693 9,984 10,284 10,593 10,910 11,238 11,575 9 8,131 8,463 8,806 9,168 9,547 10,024 10,325 10,635 10,953 11,282 11,620 11,969 11 8,276 8,617 8,963 9,336 9,722 10,207 10,513 10,829 11,153 11,488 11,833 12,188 13 9,111 9,479 9,874 10,282 10,710 11,246 11,583 11,929 12,287 12,656 13,035 13,426 15 9,275 9,656 10,055 10,473 10,906 11,451 11,795 12,147 12,512 12,888 13,275 13,673 17 9,576 9,971 10,383 10,813 11,264 11,827 12,182 12,546 12,924 13,312 13,711 14,122 19 9,753 10,153 10,575 11,016 11,470 12,045 12,405 12,778 13,161 13,555 13,962 14,381 21 9,965 10,382 10,811 11,259 11,731 12,317 12,688 13,068 13,459 13,864 14,280 14,708 23 10,152 10,572 11,008 11,469 11,949 12,546 12,924 13,312 13,711 14,123 14,547 14,983 25 10,177 10,595 11,033 11,487 11,992 12,591 12,969 13,358 13,758 14,172 14,597 15,035 27 10,365 10,793 11,238 11,699 12,215 12,825 13,210 13,607 14,015 14,435 14,868 15,314 29 10,384 10,813 11,265 11,736 12,233 12,844 13,230 13,627 14,036 14,457 14,891 15,338 31 10,577 11,016 11,474 11,957 12,459 13,082 13,476 13,879 14,296 14,725 15,167 15,622 33 10,597 11,040 11,506 11,984 12,490 13,114 13,508 13,914 14,331 14,761 15,204 15,660 35 10,795 11,247 11,718 12,207 12,723 13,359 13,759 14,173 14,597 15,035 15,486 15,950 37 10,813 11,264 11,731 12,231 12,745 13,382 13,785 14,198 14,625 15,063 15,515 15,981 39 11,016 11,470 11,949 12,457 12,982 13,631 14,041 14,463 14,896 15,342 15,803 16,277 41 11,040 11,506 11,984 12,490 13,016 13,667 14,077 14,500 14,934 15,382 15,844 16,319 43 11,247 11,718 12,207 12,723 13,260 13,923 14,341 14,771 15,213 15,670 16,140 16,624 45 11,264 11,731 12,231 12,745 13,280 13,944 14,362 14,793 15,238 15,695 16,166 16,651 47 11,470 11,949 12,457 12,982 13,529 14,206 14,632 15,071 15,523 15,990 16,469 16,963 49 11,688 12,234 12,754 13,291 13,851 14,543 14,980 15,428 15,890 16,368 16,859 17,365 51 11,905 12,465 12,992 13,539 14,114 14,820 15,264 15,722 16,194 16,680 17,180 17,696 53 12,243 12,749 13,297 13,858 14,447 15,170 15,626 16,094 16,576 17,073 17,586 18,113 55 12,471 12,991 13,548 14,122 14,723 15,459 15,923 16,401 16,893 17,400 17,922 18,459 57 12,905 13,448 14,083 14,614 15,237 15,998 16,478 16,973 17,482 18,007 18,547 19,104 59 13,146 13,703 14,347 14,890 15,521 16,297 16,786 17,289 17,808 18,342 18,893 19,459 61 13,643 14,221 14,825 15,458 16,117 16,923 17,432 17,955 18,493 19,047 19,618 20,207 63 13,884 14,473 15,089 15,734 16,406 17,228 17,745 18,276 18,824 19,389 19,970 20,569 65 14,425 15,038 15,676 16,351 17,049 17,901 18,438 18,992 19,562 20,148 20,753 21,375 67 14,694 15,323 15,976 16,662 17,372 18,242 18,788 19,352 19,932 20,530 21,146 21,780 69 15,252 15,904 16,583 17,293 18,038 18,941 19,509 20,094 20,696 21,318 21,957 22,616 19 EFFECTIVE JULY 1, 2026 - JUNE 30, 2027
Note: 5% increase over the Salary Schedule effective 7/1/2025 Range A B C D E F G H I J K L
Munis
Equivalent 0 1 2 3 4 5 6 7 8 9 10 11
1 7,118 7,401 7,699 8,011 8,337 8,753 9,017 9,288 9,565 9,853 10,148 10,453 3 7,243 7,532 7,836 8,155 8,484 8,908 9,175 9,450 9,733 10,025 10,326 10,636 5 8,102 8,433 8,783 9,142 9,519 9,995 10,295 10,603 10,921 11,249 11,586 11,934 7 8,247 8,584 8,943 9,310 9,693 10,178 10,483 10,798 11,122 11,456 11,800 12,154 9 8,537 8,886 9,246 9,627 10,024 10,525 10,841 11,166 11,501 11,846 12,201 12,567 11 8,690 9,048 9,411 9,803 10,208 10,717 11,039 11,370 11,711 12,062 12,424 12,797 13 9,567 9,953 10,368 10,796 11,245 11,808 12,162 12,526 12,902 13,288 13,687 14,098 15 9,739 10,138 10,558 10,996 11,451 12,023 12,384 12,755 13,138 13,533 13,939 14,357 17 10,055 10,470 10,903 11,354 11,827 12,418 12,791 13,174 13,570 13,977 14,396 14,828 19 10,240 10,661 11,104 11,567 12,044 12,647 13,026 13,417 13,819 14,233 14,660 15,100 21 10,464 10,901 11,352 11,822 12,317 12,933 13,322 13,721 14,132 14,557 14,994 15,444 23 10,659 11,100 11,559 12,043 12,546 13,174 13,570 13,977 14,396 14,829 15,274 15,732 25 10,686 11,125 11,584 12,061 12,591 13,220 13,617 14,026 14,446 14,880 15,327 15,786 27 10,883 11,333 11,800 12,284 12,825 13,467 13,871 14,287 14,716 15,157 15,611 16,080 29 10,904 11,354 11,829 12,323 12,845 13,486 13,892 14,308 14,738 15,180 15,635 16,104 31 11,106 11,567 12,047 12,554 13,082 13,736 14,150 14,573 15,011 15,461 15,925 16,403 33 11,127 11,592 12,081 12,583 13,115 13,770 14,183 14,609 15,048 15,499 15,964 16,443 35 11,334 11,809 12,304 12,817 13,359 14,027 14,447 14,881 15,327 15,787 16,260 16,748 37 11,354 11,827 12,317 12,843 13,382 14,051 14,474 14,908 15,356 15,817 16,291 16,780 39 11,567 12,044 12,546 13,080 13,631 14,313 14,744 15,186 15,641 16,110 16,593 17,091 41 11,592 12,081 12,583 13,115 13,667 14,350 14,781 15,225 15,681 16,151 16,636 17,135 43 11,809 12,304 12,817 13,359 13,923 14,620 15,058 15,510 15,974 16,453 16,947 17,455 45 11,827 12,317 12,843 13,382 13,944 14,642 15,080 15,533 16,000 16,480 16,974 17,484 47 12,044 12,546 13,080 13,631 14,205 14,916 15,364 15,825 16,299 16,789 17,293 17,811 49 12,272 12,846 13,391 13,955 14,543 15,270 15,729 16,200 16,685 17,186 17,702 18,233 51 12,500 13,088 13,641 14,216 14,820 15,561 16,027 16,508 17,003 17,514 18,039 18,580 53 12,855 13,387 13,962 14,551 15,170 15,929 16,407 16,899 17,405 17,927 18,465 19,019 55 13,095 13,640 14,225 14,828 15,459 16,232 16,720 17,221 17,737 18,270 18,818 19,382 57 13,550 14,121 14,788 15,344 15,998 16,798 17,302 17,822 18,356 18,907 19,475 20,059 59 13,804 14,388 15,064 15,635 16,297 17,112 17,625 18,154 18,698 19,259 19,837 20,432 61 14,326 14,932 15,567 16,231 16,923 17,770 18,303 18,853 19,418 19,999 20,599 21,217 63 14,578 15,196 15,843 16,520 17,227 18,089 18,632 19,190 19,765 20,358 20,969 21,598 65 15,146 15,790 16,460 17,169 17,902 18,796 19,360 19,941 20,540 21,156 21,790 22,444 67 15,429 16,089 16,775 17,495 18,241 19,154 19,727 20,320 20,929 21,556 22,203 22,869 69 16,015 16,700 17,412 18,157 18,940 19,888 20,484 21,099 21,731 22,384 23,055 23,747 20 Attachment A – Resolution 5342 Jury Duty
21