Agenda packet — Hayward City Council, April 21, 2026 (part 6 of 6)

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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: LB 26-007
DATE: April 21, 2026
TO: Mayor and City Council
FROM: City Attorney
Police Chief

SUBJECT
Massage Permits: Introduction of an Ordinance Amending Article 10, Chapter 6 of the Hayward Municipal Code Relating to Massage Permits and Finding that the Action is Exempt from Environmental Review.

RECOMMENDATION
That the City Council introduces the attached ordinance (Attachment II) amending Article 10, Chapter 6 of the Hayward Municipal Code, relating to Massage Permits, and finds that the action is exempt from environmental review.

SUMMARY
On December 16, 2025, the City Council adopted Ordinance No. 25-16, an interim urgency ordinance imposing a 45-day moratorium on approval of new massage businesses in Hayward. On January 27, 2026 the City Council adopted Ordinance No. 26-02, extending the moratorium for an additional 10 months, 15 days as allowed by state law. During this moratorium no conditional use permits, massage permits, or business licenses would be issued for new massage establishments or existing establishments undergoing a change of ownership.

Under current zoning regulations, massage businesses are allowed by right in the downtown core, but require a conditional use permit in some other commercial areas and are completely prohibited in other parts of the City. Additionally, massage businesses must obtain an operating permit (massage permit) from the Hayward Police Department pursuant to Hayward Municipal Code Chapter 6, Article 10. The attached ordinance contains amendments to regulations relating to issuance of massage permits that are intended to enhance enforcement capabilities, including expanded basis for suspension or revocation of permits.

The Business Friendly Hayward project led by the Planning Division includes amendments to the Zoning Ordinance that impose stricter land use controls around massage establishments. Introduction of the Business Friendly Hayward amendments are taking place separately but in conjunction with the introduction of the updated massage regulations contained in the attached ordinance.

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File #:LB 26-007

ATTACHMENTS
Attachment I Staff Report
Attachment II Ordinance
Attachment III Exhibit A to Attachment II
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DATE: April 21, 2026

TO: Mayor and City Council

FROM: City Attorney
Police Chief

SUBJECT: Massage Permits: Introduction of an Ordinance Amending Article 10, Chapter 6 of the Hayward Municipal Code Relating to Massage Permits and Finding that the Action is Exempt from Environmental Review.

RECOMMENDATION

That the City Council introduces the attached ordinance (Attachment II) amending Article 10, Chapter 6 of the Hayward Municipal Code, relating to Massage Permits, and finds that the action is exempt from environmental review.

SUMMARY

On December 16, 2025, the City Council adopted Ordinance No. 25 -16, an interim urgency ordinance imposing a 45-day moratorium on approval of new massage businesses in Hayward.

On January 27, 2026 the City Council adopted Ordinance No. 26-02, extending the moratorium for an additional 10 months, 15 days as allowed by state law . During this moratorium no conditional use permits, massage permits, or business licenses would be issued for new massage establishments or existing establishments undergoing a change of ownership.

The Business Friendly Hayward project led by the Planning Division includes amendments to the Zoning Ordinance that impose stricter land use controls around massage establishments.

Introduction of the Business Friendly Hayward amendments are taking place separately but in conjunction with the introduction of the updated massage regulations contained in the attached ordinance.

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BACKGROUND

HPD has become aware of instances of commercial sex work taking place at permitted and unpermitted massage businesses within the City. Although there are mechanisms in place to revoke existing permits for these types of violations, the lack of land use controls for massage businesses downtown creates challenges in processing new operating permit applications, and increases the risk that these new establishments will become hosts for commercial sex activity and human trafficking. Adoption of the moratorium on new permits for massage businesses has provided City staff time to develop alternative approaches to land use approval and operational regulation of these businesses that w ill provide greater safeguards for the community.

The following example provides an illustration of the significant public health and safety risk posed by massage establishments , and the need for more robust local regulations : shortly before the 45-day moratorium was adopted, the Santa Clara County District Attorney’s Office announced the arrest of three individuals who are suspected of running a network of brothels in the Bay Area, including one in Hayward.1 According to the Santa Clara District Attorney, the brothels were operating under legal cover as massage parlors. The Hayward Police Department collaborated with multiple agencies at the local, state and federal levels on the investigation that lead to th e arrests of the suspects and identification of over 40 women involved in commercial sex work at the brothels.

DISCUSSION

Massage establishments in Hayward are regulated through the Zoning Ordinance (Chapter 10, Article 1) and the Massage Permit Ordinance (Chapter 6, Article 10). Under current zoning regulations, massage businesses are allowed by right in the Downtown core , 2 require a
conditional use permit (CUP)3 in select commercial districts, and are prohibited in all other parts of the city.

The Massage Permit Ordinance4 requires massage establishment operators to obtain a permit issued by the Police Chief, subject to specific conditions such as background checks for all owners and employees , state certification for all massage therapists , and compliance with operational requirements. Failure to comply with the requirements of the Massage Permit Ordinance can lead to suspension or revocation of a massage permit.

1 https://da.santaclaracounty.gov/operation-family-ties-das-human-trafficking-task-force-busts-brothel-network-worth- millions
2 HMC Section 10-28.2.3.010, Downtown Use Table:
https://library.municode.com/ca/hayward/codes/municipal_code?nodeId=HAMUCO_CH10PLZOSU_ART28DECO_A RT10-28.2SPZO_DIV10-28.2.3USTA
3 HMC Section 10-1.3200, Conditional Use Permit:
https://library.municode.com/ca/hayward/codes/municipal_code?nodeId=HAMUCO_CH10PLZOSU_ART1ZOOR_S1 0-1.3200COUSPE
4 HMC Chapter 6, Article 10, Massage Permit Ordinance:
https://library.municode.com/ca/hayward/codes/municipal_code?nodeId=HAYWARD_MUNICIPAL_CODE_CH6BU PRTR_ART10MAPEOR
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The Hayward Police Department Vice Unit is responsible for enforcing the massage permit regulations. The unit is staffed with a detective and a sergeant who are responsible for reviewing massage permit applications, conducting background checks on applicants, investigating complaints, and initiating enforcement actions when necessary.

There are currently 17 permitted massage establishments in Hayward , with 10 of those establishments having complaints of illicit activity. One business recently had its massage permit revoked after an investigation revealed commercial sex activity taking place at the location. Additionally, the Hayward Police Department is aware of several unpermitted massage businesses in the city.

The combination of staffing challenges and suboptimal local regulatory tools increases the risk of bad operators who may be engaged in human trafficking and commercial sex work operating massage establishments in the city, which poses a significant threat to public health and safety.

Some of the proposed amendments to the Massage Permit Ordinance include:

• Expanded definition of “owner or operator” that includes anyone listed on a business license, any general or limited partners or shareholders, or any person with a 5% or greater ownership interest in the business.
• Requiring an applicant for a massage business permit to provide the name and contact information of the property owner where the business will be located, as well as a copy of the lease for the premises, or a notarized acknowledgement by the property owner that they are aware of the nature of the business conducted by their tenant. • Expanded basis for suspension or revocation of permits, including if specified acts that constitute criminal offenses involving sexual activity have taken place, whether or not criminal charges have been pursued.
• Prohibiting use of sexually suggestive advertising related to massage services and • Changing duration of permit from two (2) years to one (1) year.

Environmental Review - Adoption of this Ordinance is exempt from environmental review as the adoption of this Ordinance does not qualify as a “project” pursuant to the California Environmental Quality Act (“CEQA”), under Public Resource Code Section 21065 and CEQA Guidelines Section 15320, 15378, and 15061(b) (3) as there is no possibility that such action would cause either a direct, or reasonably foreseeable indirect, physical change in the environment.

FISCAL IMPACT

The recommendations provided herein will have no additional fiscal impact.

STRATEGIC ROADMAP

This agenda item is a routine operational item and does not relate to any of the six priorities outlined in the Council’s Strategic Roadmap.

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NEXT STEPS

If introduced by the City Council, the Ordinance will return for adoption and take effect 30 days thereafter. The moratorium adopted by Ordinance No. 26 -02 will terminate upon the effectiveness of the attached ordinance and the Business Friendly Hayward amendments.

Prepared by: Michael Vigilia, Senior Assistant City Attorney Det. Gabrielle Wright, Hayward Police Department

Recommended by: Michael Lawson, City Attorney
Bryan Matthews, Police Chief

Approved by:

______________________________
Jennifer Ott, City Manager
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ATTACHMENT II

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ORDINANCE NO. 26-_____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HAYWARD AMENDING CHAPTER 6, ARTICLE 10 OF THE HAYWARD MUNICIPAL CODE RELATING TO

MASSAGE PERMITS

THE CITY COUNCIL OF THE CITY OF HAYWARD DOES ORDAIN AS FOLLOWS:

Section 1. Chapter 6, Article 10 of the Hayward Municipal Code is amended to read as reflected in Exhibit A, attached hereto and incorporated herein.

Section 2. California Environmental Quality Act. Adoption of this Ordinance is exempt from environmental review as the adoption of this Ordinance does not qualify as a “project” pursuant to the California Environmental Quality Act (“CEQA”), under Public Resource Code Section 21065 and CEQA Guidelines Section 15320, 15378, and 15061(b) (3) as there is no possibility that such action would cause either a direct, or reasonably foreseeable indirect, physical change in the environment.

Section 3. If any section, subsection, paragraph, or sentence of this Ordinance, or any part thereof, is for any reason found to be unconstitutional, invalid, or beyond the authority of the City of Hayward by a court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance , and the City Council hereby declares that it would have passed each section, subsection, clause or phrase hereof irrespective of the fact that any one or more section, subsections, clauses or phrases be held unconstitutional, invalid or unenforceable.

Section 4. Effective Date. Pursuant to Section 620 of the City Charter, this Ordinance shall become effective thirty (30) days from the date of its adoption by the City Council. T he moratorium adopted by Ordinance No. 26 -02 shall terminate upon the effectiveness of this Ordinance and the zoning amendments contained in the Business Friendly Hayward ordinance considered separately but concurrently.

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ATTACHMENT II

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INTRODUCED at a regular meeting of the City Council of the City of Hayward, held the ___ day of __, 2026, by Council Member _______,

ADOPTED at a regular meeting of the City Council of the City of Hayward, held the ___ day of __, 2026, by the following votes of members of said City Council,

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ___________________________________
Mayor of the City of Hayward

DATE: ___________________________________________

ATTEST: ________________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

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ARTICLE 10 MASSAGE PERMIT ORDINANCE

Hayward, California, Municipal Code Created: 2025-10-24 09:13:59 [EST] (Supp. No. 25, Update 2)

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ARTICLE 10 MASSAGE PERMIT ORDINANCE1
SEC. 6-10.00 TITLE.

This ordinance shall be known as the Massage Permit Ordinance.

SEC. 6-10.01 FINDINGS AND PURPOSE.

The City Council finds and declares as follows:
a. The City of Hayward is authorized to regulate a lawful massage business pursuant to Government Code section 51030, et seq., Business and Professions Code section 4600, et seq., 37101, section 16000, or section 16100 of the California Business and Professions Code, or by virtue of Section 7 of Article XI of the Constitution of the State of California.
b. There is significant risk of injury to massage clients by improperly trained and/or uneducated massage therapists and this Article provides reasonable safeguards against injury and economic loss.
c. There is risk of prostitution and/or sex trafficking and this Article provides safeguards against these practices.
d. The permit requirements and restrictions imposed by this Article are reasonably necessary to protect the health, safety and welfare of the citizens of the City of Hayward, as well as to ward against illegal sexual commerce.

SEC. 6-10.02 DEFINITIONS.

For the purpose of this Article, certain words and phrases shall be construed herein as set forth in this section, unless it is apparent from the context that a different meaning is intended:
a. 'Acupuncture.' Whereas acupuncture is described as the stimulation of a certain point or points on or near the surface of the body by the insertion of needles to prevent or modify the perception of pain or to normalize physiological functions, including pain control, for the treatment of certain diseases or dysfunctions of the body and includes the techniques of electro acupuncture, cupping, and moxibustion; 'Acupressure' is based on a theory similar to acupuncture except that it stimulates acupuncture points by the application of pressure rather than needling.

1Note(s)—Repealed and replaced by Ordinance 06-09, adopted May 2, 2006; Repealed and replaced by Ordinance 15-02, adopted January 20, 2015.

Exhibit A
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b. 'Adult-oriented merchandise.' Any sexually-oriented implements, paraphernalia, or novelty items, such as but not limited to: condoms and sexually-oriented items that are designed or marketed primarily for the stimulation of human genital organs. c. 'Applicant.' In the case of a massage establishment permit, means an individual, or if not an individual, the general partner, chief executive officer, chief advisor, or other person responsible for the ownership and operation of the massage establishment, who applies to obtain a permit under this Article. In the case of a massage therapist permit, "applicant" means an individual who applies for a permit under this Article. d. 'CAMTC.' California Massage Therapy Council.
e. 'Chief of Police.' The Chief of Police of the City of Hayward or his or her designee. f. 'Employee.' Includes any owner, partner, operator, manager, supervisor or worker, (whether part-time, full-time, temporary, permanent, or independent contractor) whether paid or not, who renders personal services of any nature in the operation of a massage establishment.
g. 'Massage.' The scientific manipulation of the soft tissues. For purposes of this definition, the terms "massage", "massage therapy", and "bodywork" shall have the same meaning.
h. 'Massage establishment.' A fixed location where massage is performed for compensation, excluding those locations where massage is only provided on an out- call basis.
i. 'Massage practitioner.' A person who is certified by the California Massage Therapy Council pursuant to CA Business and Professions Code Section 4604.2 and who administers massage for compensation.
j. 'Massage therapist.' A person who is certified by the California Massage Therapy Council under CA Business and Professions Code Section 4604 and who administers massage for compensation. For purposes of this definition, "Massage therapist", "Massage Technician", and "Masseuse" shall have the same meaning. k. 'Managing employee.' Any employee of a massage establishment who has been designated by the massage establishment permittee to manage the business. l. 'Out-call massage therapy.' A massage therapy performed or administered for money or other consideration by a licensed massage practitioner at a location other than a licensed massage establishment.
m. ‘Owner or operator’ means any and all owners of a massage business, including, but not limited to, the following persons: The manager or other responsible employee; the individual(s) whose name appears on the business tax certificate issued by the City; a general partner, a limited partner, a shareholder, a sole proprietor, or any person who has a five-percent or greater ownership interest in a massage business, 711

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whether as an individual, corporate entity, limited partner, shareholder, or sole proprietor.
n. 'Permit.' The permit to engage in the business of massage therapy as required by this Article.
o. 'Permittee.' Any person possessing a permit required and issued under this Article, or any owner or operator of the permitted establishment.
p. 'Person.' Any individual, co-partnership, firm, association, joint stock company, corporation, joint venture, or combination of individuals of whatever form or character.
q. 'Sexual or Genital Part.' Sexual and genital parts shall include the genitals, pubic area, anus, perineum of any person and the breasts of any female. (Amended by Ordinance 17-09, adopted June 20, 2017)
SEC. 6-10.03 PERMIT REQUIREMENT.
a. Massage Establishment Permit:
(i) Except as otherwise provided in section 6-10.04, it shall be unlawful for any person to engage in, conduct or carry on, or permit to be engaged in, conducted or carried on, in or upon any premises within the city, the operation of a massage establishment without first having obtained a massage establishment permit issued by the Chief of Police pursuant to this Article. A separate permit shall be obtained for each separate massage establishment and any change in ownership to any establishment. (ii) Prior to commencing operations pursuant to a Massage Establishment Permit issued by the Chief of Police, applicants must also obtain appropriate land use approvals pursuant to the City's Zoning Ordinance.
(iii) A permit issued under this Article does not authorize the permittee to practice massage therapy until the permittee has complied with all business license requirements, zoning/planning requirements, and all other applicable federal, state, and City of Hayward laws and regulations.
b. Massage Therapist Certification: Except as otherwise provided in Section 6-10.04, it shall be unlawful for any person to engage in, conduct or carry on the function of a massage therapist without a current, valid certificate from the California Massage Therapy Council ("CAMTC"), or a current, valid license or certificate from the Department of Consumer Affairs to practice massage therapy.
c. Persons practicing acupressure under the direction of a licensed State of California acupuncturist shall obtain CAMTC certification as required in this Article. 712

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SEC. 6-10.04 PERMIT EXEMPTIONS.
a. The permit requirements of this Article shall not apply to the following persons while engaged in the performance of their duties:
(1) Physicians, surgeons, chiropractors, osteopaths, nurses, physical therapists, or acupuncturists who are duly licensed to practice their respective professions in the State.
(2) Barbers, beauticians, cosmetologists, and estheticians who are duly licensed under the laws of the State while engaging in practices within the scope of their licenses. (3) Hospitals, nursing homes, sanitariums, or any other health facility duly licensed by the State.
(4) Accredited high schools, junior colleges, colleges, or universities whose coaches and trainers are acting within the scope of their employment. (5) Accredited colleges or universities that offer massage therapy programs whose instructors and students are acting within the scope of their employments or within the scope of their curriculum.
(6) Trainers of amateur, semiprofessional or professional athletes or athletic teams while engaging in their training responsibilities for and with athletes; and trainers working in conjunction with a specific athletic event such as road races, track meets, triathlons, biathlons, or similar single occurrence athletic or recreational events.

SEC. 6-10.05 MASSAGE ESTABLISHMENT PERMIT APPLICATION AND FEE. a.

Each applicant for a massage establishment permit shall file a written application with the Chief of Police on a form provided by the Police Department. The application shall be forwarded to the Planning Director to determine if the use is allowed in the zoning district where the massage establishment is proposed to be located. A massage establishment permit does not authorize the permittee to provide massage therapy services, and it is unlawful to do so without valid CAMTC certification.
b. Each application shall be accompanied by a nonrefundable fee, in an amount established by resolution of the City Council. The application fee shall be used to defray, in part, the costs of the investigation and report, and is not made in lieu of any other fees or taxes required under this Code. Applicants are required to make payment to the Department of Justice for fingerprinting services as required by this Article. A copy of the receipt for the nonrefundable fee shall accompany the application. Separate checks are not required to pay the required fees as outlined in this Article.
c. Each applicant shall submit the following information in the application under penalty of perjury:
(1) The full, true name under which the business will be conducted. 713

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(2) The present or proposed address where the business is to be conducted. (3) The applicant's full, true name, including all other names used presently or in the past, date of birth, valid California driver's license number or identification number, Social Security number, present residence address and telephone number, gender, height, weight, color of hair, and color of eyes.
(4) The names and addresses of all persons financially interested in the business. (5) The applicant's two (2) most recent street addresses and the dates of residence at each address.
(6) The name, street address, and telephone number of other businesses in which the applicant has owned or been employed within the past seven (7) years. This shall include the dates of employment, positions held by the applicant, and a contact person at each location. Applicant shall disclose or declare that within the seven (7) years preceding submission of the application, the owner, operator, manager, and/or responsible managing officer/employee has not:
a. Had a massage establishment, massage therapist, or other similar permit or license denied, suspended, or revoked by the city, or any other federal, state or local agency;
b. Engaged in conduct or operated a massage therapy or similar establishment in a manner that would be grounds for denial, suspension, or revocation of a permit under this Article; or Chapter 10.5 (commencing with section 4600) of Division 2 of the Business and Professions Code.
c. Owned or managed a massage establishment or similar establishment where persons required to be licensed were allowed to work without the required license or permit.
(7) A statement of the permit history of the applicant which identifies whether or not such person has ever held a professional or vocational license or permit, other than as required under this Article, issued by any agency, board, city, county, territory, or state; the date of issuance of such permit or license; whether or not the permit or license is still in effect; if the permit or license is no longer in effect, whether or not it was revoked or suspended, and if so, the reason(s) therefore. The name and location of the jurisdiction or agency, which suspended or revoked such license, certificate, permit, or other authorization shall also be included.
(8) The name and street address of any other massage business operated or managed by the applicant during the last seven (7) years.
(9) A statement whether the applicant intends to personally provide massage therapy services at the business. The applicant for a massage establishment permit is required to obtain a certificate from CAMTC if that person intends to provide massage therapy services.
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(10) Written proof of the applicant's current, valid certification by CAMTC, and proof of certification for any employees or independent contractors who will perform massage services at the applicant's massage establishment. (11) Applicant's criminal convictions in California or any other jurisdiction for offenses other than traffic violations within ten (10) years before the date of the application. For the purposes of this subsection, the term 'applicant' shall apply to:
a. An individual if the applicant is an individual;
b. Any officers, directors, stockholders holding more than five percent (5%) of the stock of the corporation, or the managing responsible officer, if the applicant is a corporation; and
c. A partner or the managing responsible officer, if the applicant is a partnership. (12) The name, street address, telephone number, and date of birth of each massage therapist or employee who is or will be employed at the massage establishment, regardless of the nature of the employment, along with a valid form of identification. (13) The name, street address, and telephone number of any massage business or other like establishment owned or operated by any person whose name is required to be given pursuant to this section.
(14) Documentation to prove that the applicant has a lawful right to work in the United States, to include but not limited to: Department of Justice Immigration and Naturalization Service Employment Authorization Document. (15) If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation or charter, together with the state and date of incorporation and the name, residence address, and telephone number of each of its current officers, directors, along with the amount of stock held. (16) If the applicant is a partnership, the application shall set forth the name, residence street address, and telephone number of each of the partners. If the applicant is a limited partnership, it shall furnish a copy of its certificate of limited partnership as filed with the County Clerk. If one (1) or more of the partners is a corporation, the provisions of this subsection pertaining to corporate applicants shall apply to the corporate partner. The applicant, if a corporation or partnership, shall designate one (1) of its officers or general partners to act as its responsible managing officer/employee.

Such person shall complete and sign all application forms required of an individual applicant under this Article and shall, at all times, meet all of the requirements set for permittees by this Article or the permit shall be suspended until a responsible managing officer who meets such requirements are designated. If no such person is found within ninety (90) calendar days after the permit's suspension, the corporation or partnership's permit is deemed canceled. If the corporation or partnership wishes to reapply for a permit, a new application shall be filed.
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(17) Fingerprints taken by a representative of the Hayward Police Department and submitted to the Department of Justice for processing pursuant to this Article. (18) Written authorization for the city, its agents, and employees to seek information and conduct an investigation into the truth of the statements set forth in the application and into the background of the applicant and the responsible managing officer/employee of the massage establishment.
(19) Such other identification and information shall be provided as required by the Chief of Police, necessary to discover the truth of the matters specified and required in the application.
(20) The name, address, and telephone number of the owner of the real property upon, in, or from which the certified massage establishment is to be operated. In the event the applicant is not the legal owner of the property, the application shall be accompanied by a copy of any written lease between the applicant and the property owner authorizing use of the premises for a massage establishment, or, alternatively, if there is no written lease, then a written, notarized acknowledgment from the property owner that the property owner has been advised that a massage establishment will be operated by the applicant upon, in, or from the property owner's property.

SEC. 6-10.06 APPLICATION REVIEW.

The application and supplementary material shall be reviewed by the Chief of Police. If it is clear from the face of the application and supplementary material that the applicant is not qualified for the Massage Establishment Permit, or if the required fee has not been paid, the application may be denied without further investigation. If it appears from the face of the application and supplementary material that the applicant may be eligible for the Massage Establishment Permit, the Chief of Police shall verify the information submitted by the applicant and shall further investigate the qualifications of the applicant as follows:
a. The Hayward Police Department shall take a full set of the applicant's fingerprints, and shall submit the fingerprints to the Department of Justice for evaluation. Upon receipt of the report from the Department of Justice, the Chief of Police shall review the criminal history (if any) of the applicant;
b. The Chief of Police may conduct additional investigations in a manner authorized by law when necessary to determine if the applicant meets the qualifications for a permit pursuant to this Article; and
c. Upon receipt of an application for a massage establishment permit, the Chief of Police shall refer the application to other City of Hayward departments, as appropriate, for review of the application and inspection of the premises to ensure compliance with applicable local, state and federal laws and regulations, including, but not limited to, building, health, and fire safety regulations.
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SEC. 6-10.07 PERMIT ISSUANCE OR DENIAL.
a. The Chief of Police shall take action on the application for a Massage Establishment Permit within sixty (60) calendar days of submission of a completed application. When necessary, the Chief of Police may extend the time to take action on the application. b. The following circumstances are grounds for denial of a permit:
(1) The application is incomplete and/or required supplementary material is not submitted within thirty (30) calendar days of the date the material is requested; (2) The applicant does not have sufficient proof of the required CAMTC certification requirements pursuant to section 6-10.05 of this Article; (3) The operation as proposed by the applicant would not comply with all applicable ordinances and laws, including, but not limited to, the city's building, health, and fire safety ordinances;
(4) The applicant has previously had a massage establishment permit, massage therapist permit, or any similar license, certificate, or permit revoked by the city or any public agency;
(5) The applicant is found to have made a material misstatement or omission in the application or in a previous application.
(6) The applicant has been successfully prosecuted under the Red Light Abatement Act (California Penal Code section 11225 et seq.) or any similar law in another jurisdiction; or
(7)
The applicant has been convicted of any of the following offenses during the seven (7) years preceding the date of the application:
(i) Conduct which requires registration under California Penal Code section 290. (ii) Conduct which is in violation of California Penal Code sections 220, 245.3, 245.5, 261, 264.1, 266(h), 266(i), 266(j), 286, 288, 314, 315, 316, 318, 647(a), 647(b), or 647(d).
(iii) Crimes that are designated in California Government Code section 51032(b). (iv) Any other crime involving dishonesty, fraud, deceit, violence, or moral turpitude. (v) Conspiracy or attempt to commit any of the aforementioned designated offenses.
(vi) Convictions to a charge of a violation of California Penal Code sections 415 and 602, or any lesser included or related offense, in satisfaction of, or as a substitute for, any of the previously listed crimes, or any crime committed while engaged in the ownership of a massage establishment or the practice of massage therapy. 717

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(vii) Convictions that have been expunged and convictions under the laws of other jurisdictions which proscribe the same or similar conduct as therefore designated crimes shall be reported.
(viii) Been convicted of a Health and Safety Code section 11550 or any offense involving the illegal sale, distribution or possession of a controlled substance specified in Health and Safety Code sections 11054, 11055, 11056,11057 or 11058.
(ix) Whether the applicant has been subjected to a permanent injunction against the conducting or maintaining of a nuisance pursuant to California Penal code sections 11225 et seq. or any similar provisions of law in a jurisdiction outside the state.
c. If prosecution is pending against the applicant either for conduct listed in section 6-10.08 or for conduct violating this Article's provisions, the Chief of Police may postpone decision on the application until the final resolution of the prosecution. As used in this subsection, prosecution means charges filed by the district attorney, administrative proceedings brought by a local government or agency, or a civil or administrative action maintained by any city, county, state, or government.
d. The Chief of Police may postpone decision on a license or permit application until the City of Hayward receives the applicant's fingerprint review results from the California Department of Justice.
e. The Chief of Police shall give written notice of the grounds for denial to the applicant personally or by first class mail, postage prepaid, at the address provided in the application. The notice shall advise the applicant of the right to appeal the decision.

SEC. 6-10.08 DISQUALIFYING CONDUCT.

The following conduct shall be a basis for denial, revocation or suspension of a massage establishment permit:
a. Conviction of, or entry of a plea of guilty or no contest to, an offense that requires registration under California Penal Code section 290, or which is a violation of sections 266(i), 314, 315, 316, 318 or 647(b) or the sections in Part 1, Title 9, Chapters 7.5 or 7.6 of the Penal Code or equivalent offenses under the laws of another jurisdiction, or any offense involving sexual misconduct with children or adults, even if expunged pursuant to Penal Code section 1203.4;
b. Conviction of, or entry of a plea of guilty or no contest to, an offense involving the sale of a controlled substance specified in sections 11054, 11055, 11056, 11057, 11058, 11351, 11352, 11358 through 11363 or 11378 through 11380 of the California Health and Safety Code, or equivalent offenses under the laws of another jurisdiction, even if expunged pursuant to Penal Code section 1203.4;
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c. Conviction of, or entry of a plea of guilty or no contest to, a violation of Penal Code Section 415 as a result of an arrest for violation of Penal Code section 647(b). d. Any conduct presented in Section 6-10.10, or any prohibited activity or violation of any relevant California and Federal statute, including but not limited to, Business and Professions Code sections 4600, et seq.

SEC. 6-10.09 HEARING ON DENIAL OF PERMIT.

If a permit for a massage establishment is denied, an applicant may, within seven (7) calendar days after such action is taken, request a hearing before the City Manager or her/his designee, at which time evidence will be received for the purpose of determining whether the action of the Chief of Police in denying the issuance of an annual permit should be sustained or reversed. The City Manager or her/his designee shall render her/his decision, in writing, within seven (7) calendar days after the hearing has been concluded.

SEC. 6-10.10 GROUNDS FOR SUSPENSION OR REVOCATION OF PERMIT.

The Chief of Police may revoke or suspend any permit granted under this Article if any of the following are found:
a. The permittee does not possess the qualifications for the permit as required by this Article;
b. The permittee has been found to be in violation of any provision of this Article; c. The permittee has engaged in conduct or operated a massage establishment or has engaged in conduct as a massage therapist in a manner which violates this Article, any conditions of the permit, or any of the laws which would have been grounds for denial of the permit;
d. There is fraud, material misrepresentation, false statement, or omission of a material fact in any application for a permit or in any supplementary material; e. An activity authorized in the permit has been conducted in an unlawful manner or in such a manner as to constitute a menace to the health, safety, or general welfare of the public;
f. Upon a recommendation from the city and/or county officials which states that such business is being managed, conducted, or maintained without regard for public safety or public health;
g. Out-Call services not authorized by the Chief of Police, and/or out-call services not in accordance with any provision within this Ordinance, or Chief of Police out-call policy described in the massage establishment permit application, or applicable State or Federal statute, rule, or regulation; or
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h. h..Any prohibited activity or violation of any relevant California and Federal statute, including but not limited to, Business and Professions Code sections 4600, et seq.
i. Sexually suggestive or sexually oriented advertising relating to massage services has been disseminated in a manner that identifies, depicts, or otherwise connects such advertising to the permitted premises, including the use of the establishment’s business name, address, phone number, website, or other identifying information; and Such advertising, by its nature or content, reasonably creates the impression that sexual activity or sexually oriented conduct is available or performed on the premises j. There have been one or more acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22 taking place on the premises of the massage establishment, whether or not any criminal prosecution has been pursued or conviction obtained for such acts, and whether or not they occurred with or without the actual knowledge of the permittee. k. If the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.
l. Any circumstances that constitute grounds for denial of a massage permit application otherwise described in this Article.

SEC. 6-10.11 HEARING ON SUSPENSION OR REVOCATION OF PERMIT.

Prior to the suspension or revocation of any permit issued pursuant to this Article, a hearing as provided in section 6-10.09 of this Article, shall be held by the Chief of Police, at which time evidence will be received for the purpose of determining whether or not such permit shall be suspended or revoked, or whether the permit may be retained. The Chief of Police shall render her/his decision within seven (7) calendar days after the hearing has been concluded.
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SEC. 6-10.12 BURDEN OF PROOF.

Unless otherwise specifically prohibited by law, the burden of proof is on the applicant or permittee in any hearing or other matter under this Article.

SEC. 6-10.13 APPEAL OF SUSPENSION OR REVOCATION OF PERMIT.

Appeal from the decision of the Chief of Police to suspend or revoke a permit pursuant to section 6-10.11 may be appealed to the City Manager within seven (7) calendar days of the decision of the Chief of Police.

SEC. 6-10.14 MINIMUM AGE REQUIREMENT.
a. No person shall be employed in a massage establishment or perform massage therapy or manage or hold an ownership interest in a massage establishment who is not at least eighteen (18) years of age.
b. It is unlawful for the owner, proprietor, managing employee, or any other person in charge of any massage establishment to employ any person under eighteen (18) years of age.

SEC. 6-10.15 PERMITS NONASSIGNABLE.

No permit shall be sold, transferred, or assigned by the permittee or by operation of law, to any other person. Any such sale, transfer, assignment, attempted sale, attempted transfer or attempted assignment shall constitute an immediate revocation of the permit and the permit shall thereafter be null and void. A new owner of a massage therapy establishment must submit a new application for a massage establishment permit in accordance with this Article.

SEC. 6-10.16 CHANGE OF NAME OR LOCATION, EXPANSION OF BUILDING. a. No permittee shall operate under any name or conduct any massage establishment under any designation or location not specified in the permit. b.

In the case of any proposed change of name, notification thereof shall be made to the Chief of Police at least thirty (30) calendar days prior to the change. Any proposed change of name is subject to the approval of the Chief of Police. c. Any proposed change of location of a massage establishment is subject to the approval of the Chief of Police, in addition to compliance with all city ordinances and regulations. d. Any application for an expansion of a building of a massage establishment shall require compliance with this Article and all other applicable laws, city ordinances and regulations. 721

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SEC. 6-10.17 DISPLAY OF PERMIT.
a. The massage establishment permit and a copy of the CAMTC certification of each and every massage therapist employed in the establishment shall be displayed in an open and conspicuous place on the premises.
b. Each massage therapist shall be issued a photograph identification badge from the Police Department. When visiting a location other than a massage establishment in order to give a massage, each massage therapist shall display the badge.

SEC. 6-10.18 FACILITIES AND OPERATING REQUIREMENTS.
a. Every massage establishment and every massage therapist shall comply with standards established by the Alameda County Health Services for such businesses and practitioners and the following facilities and operations requirements:
(1) The massage establishment's premises and facilities shall meet and be maintained in a condition to comply with all applicable code requirements of the city, county, and state, including, but not limited to, those related to the safety of structures, adequacy of the plumbing, lighting, heating, ventilation, waterproofing of rooms in which showers, water or steam baths are used, and the health and cleanliness of the facility. (2) Massage establishments and massage therapists shall at all times have an adequate supply of clean sanitary towels, coverings, and linens. Towels, non-disposable coverings, and linens shall not be used on more than one (1) client, unless they have first been laundered and disinfected. Disposable towels and disposable coverings shall not be used on more than one (1) client. Soiled linens and paper towels shall be deposited in separate receptacles.
(3) In the massage establishment, wet and dry heat rooms, steam or vapor rooms or cabinets, toilet rooms, shower and bathrooms, tanning booths, whirlpool baths, and pools shall be thoroughly cleaned and disinfected as needed, and at least once each day when the premises are open, with a disinfectant. Bathtubs shall be thoroughly cleaned with a disinfectant after each use. All walls, ceilings, floors, and other physical facilities for the establishment shall be in good repair, and maintained in a clean and sanitary condition.
(4) All equipment used in the massage therapy operation shall be maintained in a clean and sanitary condition. Instruments utilized in performing massage therapy shall not be used on more than one (1) client unless they have been sterilized, using standard sterilization methods.
(5) If separate dressing rooms are offered, they may be occupied by no more than one (1) person at a time. Dressing rooms need not be separate from the room in which the massage therapy is being performed.
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(6) Toilet facilities shall be provided in convenient locations within the massage establishment and shall consist of at least one (1) unisex toilet with lavatories or wash basins provided with soap and both hot and cold running water either in the toilet room or vestibule.
(7) A minimum of one (1) wash basin for employees shall be provided at all times. The basin shall be located within or as close as practicable to the area devoted to performing of massage therapy services. Soap and sanitary towels shall also be provided at each basin. (8) Massage therapy shall be provided or given only between the hours of 7:00 a.m. and 10:00 p.m. No massage establishment shall be open and no client shall be in the establishment between 10:00 p.m. and 7:00 a.m.
(9) No alcoholic beverages shall be sold, served, furnished, kept, consumed, or possessed on the premises of any massage establishment.
(10) Controlled substances must not be consumed in a massage establishment unless the person has a prescription for the substance.
(11) No owner, manager, operator, responsible managing employee, or permittee shall permit, and no massage therapist contractor shall offer or perform, any service other than those permitted under this Article.
(12) No permittee or employee of a massage establishment shall:
a. Expose the sexual or genital part of the permittee or employee in the course of a massage therapy; or
b. Touch or expose the sexual or genital part of any other person in the course of a massage therapy.
c. Perform massage therapy on a patron with the intent or purpose of arousing, appealing to, or gratifying the sexual desires of said patron. d. Perform any task or service associated with the massage establishment while nude, semi-nude, or dressed in lingerie, see-through or transparent attire. (13) No permittee or employee of a massage establishment shall place, publish or distribute or cause to be placed, published or distributed any advertising matter that depicts any portion of the human body that would reasonably suggest to prospective customers that any service is available that is prohibited under this Article nor shall any massage establishment employ language in any advertising text or business name that would reasonably suggest to a prospective client that any service is available that is prohibited under this Article.
(14) The use or possession of adult-oriented merchandise in or on any part of a massage establishment is expressly prohibited.
(15) Condoms must not be kept or used for any purpose in the massage establishment.
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(16) Recordings.
a. No electrical, mechanical or artificial device shall be used by the operator and/or manager, massage therapist or any employee of the massage establishment for audio and/or video recording or for monitoring the performance of a massage therapy, or the conversation or other sounds in the massage rooms without the knowledge and written consent of the patron.
b. No surveillance cameras, or video recording devices of any type, may be installed on the exterior of the massage establishment. Other surveillance cameras must not be maintained or operated so as to provide surveillance of the exterior of a massage establishment or the surrounding area. No video recording devices may be installed into rooms in which massage services will be rendered. i. Surveillance camera systems may be maintained by the manager/ owner with the approval of the Chief of Police. Owner shall retain video for at least 14 days. Any exterior surveillance cameras shall be available via remote access and provided to the Hayward Police Department upon request
(17) Locks prohibited.
a. No massage therapy shall be conducted within any cubicle, room, booth or treatment room on the premises of a massage therapy business which is fitted with a lock.
b. All entrance and exit doors on the premises of a massage establishment shall remain unlocked during business hours unless the massage establishment is a business entity owned by one (1) individual with one (1) or fewer employees or independent contractors.
(18) All massage services shall be paid for in the reception area. Massage establishments may utilize a system where tip envelopes are provided in the treatment rooms to be utilized and deposited by the client in the reception area. (19) A massage establishment must not be used for residential or sleeping purposes unless the massage establishment is properly zoned and has all necessary use permits, and the massage establishment is owned by one (1) individual with one (1) or fewer employees or independent contractors.
(20) No person other than the client and the client's immediate family or guardian is allowed in the massage room while the client is dressing or undressing. (21) No person other than the client, the massage therapist assigned to the client, and the client's immediate family or guardian are allowed in the massage room if any door into the massage room is closed. Others may be in the massage room so long as all doors to the room are fully open.
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(22) Massage establishment personnel or any massage therapist must not inquire as to whether any client is a peace officer.

(23) It shall be grounds for suspension, revocation, or denial of a massage establishment permit if the permittee, or any person acting on behalf of the permittee, employs, allows, or permits any person to work or provide massage services at the permitted premises who is not registered with the Police Department as required by this Article.

(24) No massage establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area through the use of curtains, closed blinds, tints, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises.

(25) A list of massage services available and the cost of such services shall be posted in an open and conspicuous public place on the premises. The massage services shall be described in English and may also be described in such other languages as may be convenient. No massage establishment operator shall permit, and no person employed or retained by the massage establishment shall offer to perform any massage services or request or demand fees other than those posted.
(26) Display of Human Trafficking Notices. The massage establishment shall comply with the requirements in California Civil Code Section 52.6 related to the posting of information for victims of human trafficking.

SEC. 6-10.19 RESPONSIBILITY OF EMPLOYER.

It shall be the responsibility of the massage establishment permittee who employs or allows any person acting or purporting to act as a massage therapist, or the employer of any person acting or purporting to act as a massage therapist, to ensure that such person complies with the requirements of this Article and all laws.

The massage establishment permittee shall be held responsible for the conduct of all persons on the premises who engage in providing the service of massage therapy. Any act or omission of any person giving massage therapy, or any service of massage therapy, shall be deemed the act or omission of the holder of the massage establishment permit for the purposes of determining whether the permit may be revoked, suspended, or denied. Proof of knowledge of any violation of this section shall not be required for purposes of suspension, revocation, or denial of a massage establishment permit. 725

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SEC. 6-10.20 PERMIT DURATION AND RENEWAL.
a. A permit shall be valid for one year from the date of issuance unless revoked or suspended.
b. A permittee may apply for a renewal of a permit thirty (30) calendar days prior to the expiration of the permit. If, upon the 31st day after the expiration of a permit, an application of renewal has not been received, the permit shall be deemed expired. Any permit issued under this Article shall be returned to the Chief of Police within forty-eight (48) hours of its expiration. No privilege to provide massage therapy shall exist until an application for renewal has been granted. After a permit expires, a new application may be filed.
c. Permits may be renewed by filing an application for renewal under penalty of perjury updating information in the original application provided to the Chief of Police. d. Verification of continued certification, in good standing, from CAMTC, of all massage therapists shall accompany the application for renewal. Verification of CAMTC certification of all new massage therapists hired by a massage therapy establishment shall be submitted to the Chief of Police within thirty (30) days of hiring a new massage therapist. e. To renew a permit under this Article, the permittee shall pay the city a nonrefundable fee in an amount set forth by resolution of the City Council. A copy of the receipt for the nonrefundable fee shall accompany the application for renewal. f. After investigating the application for renewal , the Chief of Police shall renew the permit if the permittee continues to meet the requirements for the issuance of a permit, and none of the grounds for denial of a permit set forth in this Article exist. The Chief of Police shall renew the permit within thirty (30) calendar days of such request if the information upon which the original application was granted remains unchanged and no violations of this Article have been committed.
g. The permittee must update the Chief of Police of any violation of this Article, violation of Business and Professions Code section 4609, or any change in the status of the CAMTC certification of any employee or independent contractor within thirty (30) calendar days of the violation or change in certification status.

SEC. 6-10.21 APPLICABILITY TO EXISTING BUSINESSES.

Any business that holds itself out as a massage establishment in any way will be subject to the provisions of this Ordinance.
(Amended by Ordinance 17-09, adopted June 20, 2017)
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SEC. 6-10.22 CEASE OF BUSINESS.

If at any time during the duration of a permit issued under this Article a permittee ceases to do business as a massage establishment, the permittee shall:
a. Return any permit issued under this Article to the Chief of Police within five (5) business days; and
b. Notify the Revenue Division of the Finance Department.

SEC. 6-10.23 INSPECTION.

The Police Department shall, from time to time and during any hour in which a massage establishment is open for business, make an administrative inspection of each massage establishment for the purpose of determining compliance with this Article.

SEC. 6-10.24 ENFORCEMENT.
a. It is the duty of the Chief of Police to enforce rules and regulations in accordance with this Article.
b. Pursuant to the City's prosecutorial discretion, the city may enforce violations of the provisions of this Article as criminal, civil and/or administrative actions. c. If a person falsely states or advertises or puts out any sign or card or other device, or falsely represents to the public through any print or electronic media, that he or she or any other individual is licensed, certified, or registered by a governmental agency as a massage therapist or massage practitioner, that person shall be subject to a civil penalty not to exceed two thousand five hundred dollars ($2,500.00) for each violation, to be assessed and collected in a civil action brought by the City Attorney, District Attorney, or Attorney General. –

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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: LB 26-008
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources

SUBJECT
Salary and Benefits Resolution & Employment Agreements: Adopt Resolutions Amending the Unrepresented Employees Salary and Benefits Resolution, the City Clerk Employment Agreement, the City Attorney Employment Agreement, and the City Manager Employment Agreement

RECOMMENDATION
That the City Council adopts Resolutions (Attachments II, IV, V, and VI) amending the Unrepresented Employees Salary and Benefits Resolution (Attachment III) for Executives and Non-Executives; the City Clerk Employment Agreement; and the City Attorney Employment Agreement to defer cost of living adjustment (COLA) increases and to Amend the City Manager Employment Agreement to continue forgoing cost-equivalent benefits for the full fiscal year 2026-27...End

SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. In order to lead the City forward in this initiative, the City Manager has agreed to continue forgoing benefits that are cost equivalent to four and one-half percent (4.5%) in her overall salary through the end of fiscal year 2026-

27. The City Attorney and City Clerk have agreed to defer the upcoming four percent (4%) COLA due in their respective employment agreements at the beginning of fiscal year 2026-27 to the end of the fiscal year 2026-27. In addition, the Executive team will defer the COLA due in the Unrepresented Employees Salary and Benefits Resolution from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27 (4%), and Unrepresented Non-Executive employees will similarly defer the three percent (3%) COLA from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27. These deferrals are aligned with other concessions agreed upon with some non-safety labor unions.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution - Unrepresented Employees
Attachment III Unrepresented Employees Salary and Benefits Resolution Attachment IV Resolution - City Attorney
CITY OF HAYWARD Printed on 4/17/2026Page 1 of 2
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File #:LB 26-008
Attachment V Resolution - City Clerk
Attachment VI Resolution - City Manager
CITY OF HAYWARD Printed on 4/17/2026Page 2 of 2
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DATE: April 21, 2026

TO: Mayor and City Council

FROM: Director of Human Resources

SUBJECT: Unrepresented Employees Salary and Benefits Resolution and Employment Agreements: Adopt Resolutions Amending the Unrepresented Employees Salary and Benefits Resolution, the City Clerk Employment Agreement, the City Attorney Employment Agreement , and the City Manager Employment Agreement

RECOMMENDATION

That the City Council adopts Resolutions (Attachments II, IV, V and VI ) amending the Unrepresented Employees Salary and Benefits Resolution (Attachment III) for Executives and Non-Executives; the City Clerk Employment Agreement; and the City Attorney Employment Agreement to defer cost of living adjustment (COLA) increases and to Amend the City Manager Employment Agreement to continue forgoing cost-equivalent benefits for the full fiscal year 2026-27.

SUMMARY

The City of Hayward is facing a budget deficit and is taking measures to reduce costs. In order to lead the city forward in this initiative, the City Council has provided direction to forgo the salary increase for Mayor and Council, effective the pay period containing July 1, 2026, which is based on the Consumer Price Index . In addition, the City Manager has agreed to continue forgoing benefits that are cost equivalent to four and one- half percent (4.5%) in her overall salary through the end of fiscal year 2026-27. The City Attorney and City Clerk have agreed to defer the upcoming four percent (4%) COLA due in their respective employment agreements at the beginning of fiscal year 2026-27 to the end of the fiscal year 2026 -27. In addition, the Executive team will defer the four percent (4%) COLA due in the Unrepresented Employees Salary and Benefits Resolution from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27, and Unrepresented Non- Executive employees will similarly defer the three percent (3%) COLA from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27.

These deferrals are aligned with other concessions agreed upon with some non-safety labor unions.

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FISCAL IMPACT

The proposed amendments include the following projected savings:
• Nearly $300,000 in savings from amending the Unrepresented Employees Salary and Benefits Resolution
• $9,000 in savings from amending the City Clerk Employment Agreement • $14,000 in savings from amending the City Attorney Employment Agreement • $18,000 in savings from amending the City Manager Employment Agreement

The total projected General Fund savings is approximately $340,000 in fiscal year 2026-27.

BACKGROUND

In response to the City’s current financial state, the City implemented a number of cost saving measures, including but not limited to: a transfer of Measure C funds; a use of OPEB Trust fund balance; use of CDBG funds; update of master fee schedule; cost reductions and revenue offsets in the Navigation Center; maintaining the FY 2025-26 worker’s compensation transfer amount into FY 2026-27 resulting in use of fund balance in the Worker’s Compensation Fund; public safety overtime reductions; and other police department savings. Even after all these measures are assumed, the City still projects funding gap that will need to be closed by either labor concessions or departmental cost reductions, which will include additional layoffs or a combination of both, depending on the extent of concessions.

All bargaining groups in the City were asked for a concession equivalent to forgoing upcoming scheduled COLA increases. Cost savings contributed by bargaining groups are critical to the City’s fiscal health as employee salaries and benefits costs make up over 90% of the General Fund budget.

DISCUSSION

In fiscal year 2025-26, Council decided to forgo the salary increase, for Mayor and Council, of one and one-half percent (1.5%) and reduced their salaries by an additional five percent (5%) to help lead the City in addressing the financial state of the organization. Mayor and Council have provided direction to forgoing the upcoming increase due the pay period containing July 1, 2026. This increase will be determined based on CPI and will not be applied for fiscal year 2026-27. This action will be brought back to Council with the next Salary Plan amendment in May 2026.

In fiscal year 2025-26, unrepresented executive and non-executive employees were subject to unpaid furloughs as a cost saving measure for the City. Executive employees furloughed for the equivalent of four percent (4%) of their annual salary and unrepresented non- executive employees were furloughed for the equivalent of three and one- half (3.5%) of their annual salary.

As the City’s financial structural deficit continues, all unrepresented employees will defer their respective COLAs, initially scheduled for the pay period containing July 1, 2026. Pursuant to the 731

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most recent salary resolution, unrepresented executive employees are due a four percent (4%) COLA increase and unrepresented non- executive employees are due a three percent (3%) COLA increase beginning the pay period containing July 1, 2026. These increases will instead be deferred to the end of the fiscal year and will now be effective at the beginning of the pay period containing June 30, 2027. This deferral creates a general fund cost savings in fiscal year 2026-27.

Similarly, the City Clerk and City Attorney previously agreed to a furlough equivalent to four percent (4%) of salary in fiscal year 2025-26. For fiscal year 2026-27, both the City Clerk and City Attorney have agreed to defer the four percent (4%) COLA due in their respective employment agreements the pay period containing July 1, 2026. The deferral will move the COLA increase from the beginning of the fiscal year to the end of the fiscal year and will now be effective at the beginning of the pay period containing June 30, 2027, creating a year of salary savings from the respective employment agreements for the City.

In addition, the City Manager previously agreed to forgo her personal equipment and vehicle allowance in the first year of her employment to lead the City in realizing additional cost savings. The City Manager has agreed to continue forgoing the personal equipment and vehicle allowance in her employment agreement for an additional six months, through the end of fiscal year 2026-27. These forgone benefits represent the equivalent of four and one- half percent (4.5%) of the City Manager’s salary, and equivalent savings through the end of fiscal year 2026-

27. STRATEGIC INITIATIVES

This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.

NEXT STEPS

Staff will finalize the documents and obtain necessary review by the City Attorney and respective approval by the City Manager and the Mayor to execute them. The Human Resources Department will work with the Finance Department to implement these changes.

Prepared and Recommended by: Ian Tecson, Director of Human Resources

Approved by:

______________________________
Jennifer Ott, City Manager
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ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 26-____

Introduced by Council Member _________

RESOLUTION APPROVING AMENDMENT TO THE SALARY AND BENEFITS

RESOLUTION FOR UNREPRESENTED EMPLOYEES

WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and

WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27 to eliminate the budget deficit; and

WHEREAS, the City’s Executive Team supports deferring the four percent (4%) Cost of Living Adjustment (COLA) increase due for unrepresented executive classifications at the beginning of Fiscal Year 2026- 27 to the pay period including June 30, 2027 ; and the three percent (3%) COLA due at the beginning of Fiscal Year 2026 -27 for unrepresented non- executive classifications will be deferred to the pay period including June 30, 2027.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby approves the amendment to the Salary and Benefits Resolution for Unrepresented Employees.

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ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

734
S
alary and Benefits Resolution
fo
r

UNREPRESENTED EMPLOYEES
Effective July 1, 2015
Amended: May 13, 2012 (Resolution No. 12-071)
June 13, 2012 (Resolution No.12-093)
April 15, 2014 (Resolution No. 14-045)
July 7, 2015
May 17, 2016
June 27, 2017
June 26, 2018
May 26, 2020
June 22, 2021
July 20, 2021
June 21, 2022
July 1, 2024
October 28, 2025 (Resolution No. 25-187)
November 18, 2025 (Resolution No. 25-197)
April 21, 2026 (Resolution No. 26-XXX)
Attachment III
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S A LA R Y A N D BE N E FI T S RE S O L U T I O N FO R

UN R E P R E S E N T E D M A N A G E M E N T E M P L O Y E E S

RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 i

TABLE OF CONTENTS

Salary and Benefits Resolution ................................................................................... 1

1.00 Composition ...................................................................................................... 1

2.00 Probationary period .......................................................................................... 1

2.01 Appointments Not Subject to Probationary Period ..................................................................... 1

2.02 Appointments Subject to Probationary Period ............................................................................ 1

2.03 Release of Probationer ................................................................................................................. 1

2.04 Release Following Promotion ....................................................................................................... 1

2.05 Effect of Leaves on Probationary Period ...................................................................................... 2

2.06 Effective Date of Regular Status ................................................................................................... 2

3.00 Layoffs, Resignations & Terminations ............................................................ 2

3.01 Layoffs ........................................................................................................................................... 2

3.02 Rights of Return Following a Layoff .............................................................................................. 4

3.03 Resignations .................................................................................................................................. 5

3.04 Terminations ................................................................................................................................. 6

4.00 Work Schedules ................................................................................................ 6

4.01 Work Schedules ............................................................................................................................ 6

4.02 Overtime ....................................................................................................................................... 7

4.03 Work Performed During Disaster ................................................................................................. 7

4.04 Fiscal Year 2025-2026 Furlough Obligation .................................................................................. 7

5.00 Benefit Plans ................................................................................................... 10

5.01 Medical Insurance....................................................................................................................... 10

5.02 Flexible Benefits Allowance ........................................................................................................ 10

5.03 Federal or State Health Plan ....................................................................................................... 11

5.04 Alternate Benefits ....................................................................................................................... 12

5.05 Supplemental Retirement Benefit .............................................................................................. 14

5.06 Dental Insurance ......................................................................................................................... 14

5.07 Life Insurance .............................................................................................................................. 15

5.08 Disability Insurance ..................................................................................................................... 15

5.09 Vision Care .................................................................................................................................. 15

5.10 Benefits for Domestic Partners................................................................................................... 16

5.11 Medical, Dental, Vision, Flexible and Alternate Benefits for Certain Part-Time Employees ...... 16 Attachment III
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5.12 Deferred Compensation Plan ..................................................................................................... 17

5.13 Defined Benefit Retirement Program ......................................................................................... 17

5.14 Car Allowances and Mileage Reimbursement ............................................................................ 18

5.15 Additional Employee CalPERS Contributions .............................................................................. 18

5.16 Health and Wellness Reimbursement ........................................................................................ 18

5.17 Professional Development Reimbursement ............................................................................... 19

5.18 Educational Reimbursement ...................................................................................................... 20

5.19 Personal Equipment Stipend ...................................................................................................... 21

5.20 Cellular Phone Stipend ............................................................................................................... 21

6.00 Salary Administration ..................................................................................... 21

6.01 Salary Administration Policy ....................................................................................................... 21

6.02 Salary at Time of Employment .................................................................................................... 22

6.03 Eligibility for Advancement in Pay .............................................................................................. 22

6.04 Attaining Advancement .............................................................................................................. 22

6.05 Use of Performance Ratings in Determining Whether Step Advancement is Merited .............. 23

6.06 Withholding Step Advancements ............................................................................................... 23

6.07 Change in Pay Upon Promotion .................................................................................................. 23

6.08 Change in Pay Upon Demotion ................................................................................................... 23

6.09 Change in Pay Upon Reclassification .......................................................................................... 23

6.10 Acting Pay ................................................................................................................................... 24

6.11 Bilingual Pay ................................................................................................................................ 24

6.12 Special Assignment Positions ..................................................................................................... 25

6.13 Salaries ........................................................................................................................................ 25

6.14 “Y-Rated” Salaries ....................................................................................................................... 25

6.15 Salary Adjustments ..................................................................................................................... 25

6.16 Salary Survey ............................................................................................................................... 26

6.17 Longevity Pay .............................................................................................................................. 26

7.00 Holidays ........................................................................................................... 27

7.01 Holidays Observed by the City .................................................................................................... 27

7.02 Holidays for Part-Time Employees ............................................................................................. 27

8.00 Vacations ......................................................................................................... 28

8.01 Vacation Leave Policy ................................................................................................................. 28

8.02 Vacation Accruals for Full-Time Employees ............................................................................... 28 Attachment III
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8.03 Vacation Accruals for Certain Part-Time Employees .................................................................. 30

8.04 Payment for Unused Vacation Leave.......................................................................................... 30

9.00 Sick Leave ........................................................................................................ 30

9.01 Sick Leave Policy ......................................................................................................................... 30

9.02 Sick Leave Allowance for Full-Time Employees .......................................................................... 31

9.03 Sick Leave Allowance for Certain Part-Time Employees ............................................................ 31

9.04 Sick Leave Notice and Certification ............................................................................................ 33

9.05 Payment for Unused Sick Leave ................................................................................................. 33

9.06 Catastrophic Injury/Illness Time Bank ........................................................................................ 35

10.00 Miscellaneous Leaves ..................................................................................... 37

10.01 Bereavement and Reproductive Loss Leave ............................................................................... 37

10.02 Jury Leave ................................................................................................................................... 38

10.03 Military Leave ............................................................................................................................. 38

10.04 Worker’s Compensation Leave ................................................................................................... 38

10.05 Family and Medical Leave / California Family Rights Act ........................................................... 38

10.06 Pregnancy Disability Leave ......................................................................................................... 38

10.07 Leave of Absence ........................................................................................................................ 38

10.08 Parental Leave ............................................................................................................................ 39

10.09 Management Leave .................................................................................................................... 39

11.00 Miscellaneous Provisions .............................................................................. 40

11.01 Notification of Address ............................................................................................................... 40

11.02 Restrictions on Outside Work ..................................................................................................... 40

11.03 Employee Health and Medical Examinations ............................................................................. 41

11.04 Conversion of Compensatory Time ............................................................................................ 41

11.05 Americans with Disabilities Act (ADA) ........................................................................................ 41

11.06 Potential Changes in Wages and Benefits .................................................................................. 41

11.07 Fire Chief Position ....................................................................................................................... 41

11.08 Police Chief Position ................................................................................................................... 42

11.09 Duration ...................................................................................................................................... 42 APPENDIX A. Salary Schedule and Employee Status Table

APPENDIX B. Employee Status

APPENDIX C. Fire Chief Position Benefits

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 iv APPENDIX D. Police Chief Position Benefits
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1.00 COMPOSITION
The employee classifications subject to this Resolution are categorized into three groups: Unrepresented-Executive, Unrepresented Exempt, and Unrepresented Non- Exempt, which are comprised of the classifications of employment listed in Appendix A to this Resolution and any other classification of employment which may hereafter be assigned by the City Manager in accordance with the provisions of the City of Hayward Personnel Rules governing unit determination and modification.

2.00 PROBATIONARY PERIOD

2.01 Appointments Not Subject to Probationary Period
All employees in positions identified in Appendix B as being members of the unclassified service are not subject to this Section 2.00. Employees in the unclassified service are “at-will” employees who can be separated from employment at any time, with or without cause. Employees who move from positions in the classified service to positions in the unclassified service will be required to sign a notification and acknowledge that the position is at-will.

2.02 Appointments Subject to Probationary Period
All employees in positions identified in Appendix B as being part of the classified service shall serve a probationary period as provided in this Section. The probationary period shall be regarded as a part of the selection process and shall be utilized for closely observing the employee's work and for securing the most effective adjustment of a new employee to their position.

All appointments to the classified service (other than temporary and provisional appointments or appointments to part-time positions that are regularly scheduled to work less than twenty (20) hours per week) shall be subject to a probationary period.

The regular period of probation shall be one (1) year, but longer periods may be specified in individual classification descriptions and shall apply to all positions in the classification. An extension of the probationary period up to a maximum of six (6) months may be approved by the City Manager or designee in individual cases.

2.03 Release of Probationer
During the probationary period, an employee in the classified service may be released at any time without the right of appeal. Written notice of release designating the effective date of such action shall be furnished to the probationer. Persons employed in part-time positions scheduled for less than twenty (20) hours per week are excluded from the classified service and may be released at any time without the right of appeal.

2.04 Release Following Promotion
Any employee in the classified service may be released during the probationary period following promotion to another position in the classified service. The employee released shall be reinstated to the employee’s former position or to a position in the Attachment III
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class from which the employee was promoted unless the reason for the release is cause for dismissal. The employee will be reinstated to the salary step held before the promotion. If no vacancy exists in this former class, the employee with the least amount of time in this class shall be demoted to the most recent class in which that employee has satisfactorily served. If any employee is released by such action, such employee shall be placed on a reemployment register for the classification from which the employee was released.

Any employee who is released during a probationary period following promotion to another position in the classified service and whose release is cause for dismissal shall retain appeal rights to the dismissal from City employment, but not the right to appeal the employee’s release from the position from which the employee was demoted.

2.05 Effect of Leaves on Probationary Period
Periods on a paid or unpaid leave of one (1) week or more shall automatically extend the probationary period of any employee on probation. The length of the extension shall be equal to the length of the individual’s placement on paid or unpaid leave.

2.06 Effective Date of Regular Status
Upon attaining regular status as a member of the classified service, the effective date shall revert to the date of the initial probationary appointment.

3.00 LAYOFFS, RESIGNATIONS & TERMINATIONS

3.01 Layoffs
Whenever there is a lack of work or a lack of funds requiring a reduction in personnel in a department or division of the City government, the required layoffs shall be made as the City Manager may designate in accordance with the following procedures:

A. Employees shall be laid off in inverse order of their length of service within the affected job classification. A layoff out of the inverse order of seniority may be made if, in the City Manager’s judgment, retention of special job skills is required.

1. Length of service for the purpose of this Section shall mean an employee's continuous, uninterrupted service in the classification affected by the layoff. Length of service is determined based on the date of appointment in the affected classification and includes time spent as a probationary or part-time employee in that classification.

Length of service includes all days of attendance at work and authorized leaves of absence. Length of service does not include unauthorized absences or periods of suspension or layoff. Length of service shall not include time spent in a provisional or acting appointment in the affected classification unless such provisional or acting appointment was contiguous with appointment to such classification in a probationary or part-time status.

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2. An interruption in length of service within a classification shall occur as a result of any one of the following:

a. Discharge for cause.
b. Voluntary resignation.
c. Retirement for service or disability.
d. Absence from work for twenty-four (24) consecutive months because of layoff.
e. Failure to return from layoff as provided in Section 3.02, Right of Return Following a Layoff.
f. Failure to return from an approved leave of absence upon the date specified for return at the time said approval was granted.

3. Whenever the effective date of appointment to a classification is the same for two (2) or more employees, the original date of hire as a probationary or part-time employee with the City shall be used to determine which employee has a greater length of service within the classification. The employee with the earlier original date of hire with the City shall be considered to have the greater length of service within the classification in this situation.

4. Whenever the effective date of appointment to a classification and the original date of hire as a probationary or part-time employee with the City is the same for two (2) or more employees, actual hours worked shall be used to determine which employee has greater length of service within the classification. The employee with more hours worked in the classification shall be considered to have the greater length of service within the classification in this situation.

B. Within each affected job classification, employees will be laid off in the following order, unless retention of special job skills is required: all provisional employees shall be laid off before probationary employees and all probationary employees shall be laid off before any regular employees provided, however, that part-time employees whose length of service is less than any probationary or regular employee shall be laid off before such probationary or regular employee. Thereafter, if additional reductions in personnel are required, those employees with the least length of service within the affected classification shall be laid off.

C. Any regular, probationary, or part-time employee in the classified service who is designated to be laid off and who has held regular status in a lower or equal classification within the City may displace an employee in the lower or equal classification provided that the employee exercising the displacement privilege has greater classification length of service than the incumbent in the class to which the employee is bumping. If the employee in the higher Attachment III
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classification has not held status in a lower classification in the department, then no displacement rights accrue to that individual.

1. Bumping rights afforded to an employee in the classified service pursuant to this Section shall include bumping rights to those classifications in which the employee has previously served and which may since have been re-titled but where, as determined by the City Manager or designee, no substantive changes have been made in the duties or qualifications for the classification(s) in question.

2. Prior to employees being laid off, the Human Resources Department shall furnish to affected employees, upon request, status registers for all affected classifications in this group. Said lists shall include the names of all present employees who have held these classifications, their appointment dates, and their length of service thereto.

3. An employee eligible to bump into another classification pursuant to this paragraph (C) shall have five (5) calendar days after notice of assignment by the City Manager or designee to a position in that classification in which to accept such assignment. If the affected employee fails to accept such assignment within said five (5) calendar day period, the employee shall be laid off. An employee so assigned shall be placed at a salary step in the range for the classification to which the employee bumps which is closest to the employee's former rate of pay but which does not exceed the salary step held by the employee in the classification from which the employee was displaced.

4. In the event an employee bumps to an occupied or vacant position that is "flexibly" staffed as reflected in the Positions and Salaries Resolution, assignment to said position shall be at the level the employee previously held.

D. Employees scheduled for layoff will be given at least fourteen (14) calendar days advance notice, if possible. The City shall attempt, in so far as is possible, to accomplish any contemplated reduction in personnel by attrition rather than by layoff.

E. In the event employees are scheduled to be laid off, other employees with greater length of service within the same classification may elect to be laid off in lieu of those employees scheduled for such layoff.

3.02 Rights of Return Following a Layoff
As position vacancies in the classified service occur, employees on layoff and those occupying positions to which they have bumped shall be afforded return rights in the order of their length of service in the classification(s) in which such vacancies occur.

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A. An employee shall have ten (10) calendar days from the mailing by certified mail of a notice of return to work to the employee’s address of record on file in the Human Resources Department to indicate acceptance of such return and the employee’s agreement to report for work as specified in the notice.

B. Employees in layoff status shall retain all credited sick leave earned but unused at the time of layoff less any amounts paid out. An employee who is laid off shall not earn vacation leave credit while in layoff status.

C. Employees who are displaced from positions in the classified service by virtue of layoff shall be placed on a reemployment register for the classification they held at the time the layoff occurred, hereinafter referred to as the "primary" register. They shall also be placed on reemployment registers for classifications in which they previously served, hereinafter referred to as "secondary" registers. If an employee fails to respond to a notice of return within the prescribed time period or declines to return from layoff to a secondary register classification, the employee's name shall be removed from said secondary register and the employee shall no longer be eligible for recall to that classification. If an employee fails to respond to a notice of return within the prescribed time period or declines to return to the primary register classification, the employee will be considered to have voluntarily resigned from employment with the City. Notices will be sent to the employee’s last address on record with the City.

D. Full-time employees who have bumped to a part-time position or who have been recalled from layoff to a part-time position shall be afforded an opportunity to return to full-time status as position openings become available. Such right of return shall be subject to the "length-of-service" and "service within classification" requirements provided in this Section and Section 3.01, Layoffs, of this Resolution.

E. Employees who request and are granted a voluntary demotion to a vacant position in lieu of layoff shall be afforded the same rights of return as employees who have exercised bumping rights.

F. An employee who, in lieu of layoff, was transferred to another position within the same classification shall be notified of an opening in the employee’s previous position and shall be afforded an opportunity to apply for reinstatement to that position.

G. Primary and secondary registers shall be valid for a period of two (2) years.

3.03 Resignations
Any employee wishing to leave the employ of the City in good standing shall file with the employee’s Department Director or designee or, in the case of a Department Director, with the City Manager, a written resignation stating the effective date and reasons for leaving. The written resignation must be filed at least two (2) weeks before the planned separation date unless the City Manager or designee waives such time limit. A resignation becomes final when accepted by the person receiving the resignation. Once the resignation is accepted, it cannot be withdrawn. A statement Attachment III
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as to the resigned employee's service performance and other pertinent information shall be forwarded to the Human Resources Department. Failure to submit a written resignation as provided in this Section shall be entered on the service record of the employee and may be cause for denying future employment with the City.

3.04 Terminations
An employee in the unclassified service may be terminated or discharged from employment at any time by the City Manager. Whenever it is the intention of the City Manager to discharge an employee, the Director of Human Resources shall be notified.

Discipline of employees in the classified service, including termination or discharge, shall be subject to the City’s Personnel Rules.

4.00 WORK SCHEDULES

4.01 Work Schedules
The normal schedule for all full-time employees shall consist of eighty (80) hours during each bi-weekly period. The City reserves the right to implement business closures, including the following, observed annually:

 During the calendar week in which the Thanksgiving holiday is observed

 On those days between the City’s observance of Christmas and New Year’s Day, with the discretion to extend the closure through the calendar week in which New Year’s Day is observed.

 Cesar Chavez Day, March 31 st (observed the following Monday if holiday falls on a Monday; observed the preceding Friday if holiday falls on a Saturday)

If the City exercises the right to implement business closures, employees will be permitted to use available accrued vacation or management leave

balances. Employees who do not have sufficient leave balances for the entire period will be in an unpaid status. No leave balances will be advanced.

In lieu of using accrued leave balance, employees may elect to be in an unpaid status during any business closure. For purposes of business closures only, employees who elect to take time off unpaid during City designated business closures shall continue to accrue seniority, sick leave, and vacation leave, and will be eligible for holiday pay as if they were in a paid status. In exercising the right to implement business closures, the City Manager or designee has sole discretion in determining which departments and/or positions will be affected by the closure.

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4.02 Overtime
It is the policy of the City that overtime work is to be kept to a minimum, consistent with the protection of lives and property of its citizens and the efficient operation of activities of the City, and it shall be authorized by the Department Directors or their designees.

Overtime-eligible employees are not permitted to work overtime except as the Department Director or designee authorizes or directs. No employee may work overtime without receiving prior approval from the appropriate supervisor prior to performing the work. Working overtime without advance approval is grounds for discipline.

Employees eligible to receive overtime compensation, as determined under the provisions of the Fair Labor Standards Act (FLSA), shall receive overtime for work performed over forty (40) hours per workweek at 1.5 times the employee’s regular rate of pay. All hours paid shall be counted toward the forty (40) hour threshold for purposes of determining if an employee is entitled to receive overtime compensation.

For purposes of computing overtime, the regular workweek for an employee shall be a seven (7) day cycle as established by the Human Resources Director. All overtime entitlements shall be computed to the nearest tenth of an hour (6-minute increments).

Employees may request and, subject to approval of the Department Director or designee, receive compensatory time in lieu of overtime pay. The compensatory time accrual cap shall be one hundred twenty (120) hours. The compensatory time cap shall be maintained on a continuous, per pay period basis.

An employee’s eligibility to receive overtime compensation for services performed shall be determined in accordance with the FLSA. Those employees who are classified as “exempt” under the FLSA shall not be eligible to receive overtime.

4.03 Work Performed During Disaster
Overtime exempt employees who are required to work during a declared civil emergency shall not receive additional compensation for hours worked in excess of their regular workday or workweek. All employees shall have the duty and obligation to perform emergency work upon request of proper authority declaring such emergency.

4.04 Fiscal Year 2025-2026 Furlough Obligation
A. Executive Classification Furlough
Between November 3, 2025, and June 28, 2026, all executive classifications, will take the approximate equivalent of a four percent (4%) reduction in annual salary costs through a furlough obligation. The approximate equivalent is eighty- three and two-tenths (83.2) furlough hours.

Furlough Hours
An employee required to furlough will be allowed to meet their furlough obligation through time off of their choosing, provided the requests for time off are approved in advance by the employee’s supervisor. Supervisors will be Attachment III
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encouraged to approve the use of such requests unless operational necessity precludes approval.

Employees must first meet their furlough obligation prior to taking accrued vacation or compensatory time off.

An employee must submit their request for the use of floating furlough hours in accordance with their regular time-off request practice. Furlough hours must be taken within fiscal year 2025-2026, no later than the pay period ending June 28, 2026. Absent such a timely request, the employee’s supervisor can unilaterally schedule the furlough hours to be taken by the employee.

In the event of a dispute regarding the approval of furlough hours, their supervisor shall forward the reason for denial to the City Manager for review, whose decision shall be final.

Furlough Payback
In order to mitigate the financial impact of the Furlough Program on employees, employees will spread the payback of the furlough obligation over the remaining 17 pay periods in FY 2025-26 between November 3, 2025, and June 28, 2026.

The furlough obligation spread over FY 2025-26 shall have approximately four and eighty-nine hundredths (4.89) hours of paid time deducted from each full- time employees’ paycheck beginning the pay period including November 3, 2025, and ending with the pay period including June 28, 2026.

Any employee who leaves City employment prior to completely reimbursing the City for the furlough hours taken will have any remaining prorated balance of owed furlough payback hours deducted from their final paycheck.

Exceptions to Furlough Obligation
Any new employees or employees returning from an unpaid status will have a furlough obligation based on the number of pay periods remaining in FY 2025-

26. Any employee paid under Workers’ Compensation will not be expected to participate in the Furlough Program until they have returned to work. At that time, a determination will be made to calculate the employee’s furlough obligation on a pro-rated basis, based on the number of pay periods remaining in the furlough payback period.

B. Non-Executive Classification Furlough
Between November 17, 2025, and June 28, 2026, all non-executive classifications will take the approximate equivalent of a four percent (3.5%) reduction in annual salary costs through a furlough obligation. The approximate equivalent is seventy-two and eight-tenths (72.8) furlough hours.

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Furlough Hours
An employee required to furlough will be allowed to meet their furlough obligation through time off of their choosing, provided the requests for time off are approved in advance by the employee’s supervisor. Supervisors will be encouraged to approve the use of such requests unless operational necessity precludes approval.

Employees must first meet their furlough obligation prior to taking accrued vacation or compensatory time off.

In the event of a dispute regarding the approval of furlough hours, their supervisor shall forward the reason for denial to the City Manager for review, whose decision shall be final.

Furlough Payback
In order to mitigate the financial impact of the Furlough Program on employees, non-executive employees will spread the payback of the furlough obligation over the remaining 16 pay periods in FY 2025-26 between November 17, 2025, and June 28, 2026. The furlough obligation spread over FY 2025-26 shall have approximately four and fifty-five hundredths (4.55) hours of paid time deducted from each full-time employees’ paycheck beginning the pay period including November 17, 2025, and ending with the pay period including June 28, 2026.

Exceptions to Furlough Obligation
Any new employees or employees returning from an unpaid status will have a furlough obligation based on the number of pay periods remaining in FY 2025-

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5.00 BENEFIT PLANS

5.01 Medical Insurance
The City currently contracts with the California Public Employees' Retirement System (CalPERS) for the purpose of providing medical insurance benefits for active employees and their eligible dependents, eligible retired employees, and eligible survivors of retired employees. Eligibility of a dependent to participate in this program shall be in accordance with the terms of the Public Employees’ Medical and Hospital Care Act (PEMHCA). Eligibility of retired employees and survivors of retired employees to participate in this program shall be in accordance with those provisions of the PEMHCA providing for participation by “annuitants.”

The City’s employer contribution towards medical insurance benefits for each eligible employee shall be the minimum contribution amount required by Government Code Section 22892. Contributions provided under this Section are required only to the extent mandated by the PEMHCA.

Because CalPERS may change carriers and plans, the City shall not be required to provide specific insurance coverage and shall only be required to provide those benefits as described in this Section so long as the City contracts for benefits with CalPERS for medical insurance benefits.

The City will provide each eligible annuitant, as defined by the PEMHCA, with an employer contribution towards medical insurance benefits that is equal to any contribution provided to an active employee under this Section.

5.02 Flexible Benefits Allowance
The City shall continue to provide a Flexible Benefit Allowance (125 Plan) for each full- time employee in regular or probationary status who is enrolled in one of the CalPERS medical insurance plans offered by the City.

Effective January 1, 2019, the allowance provided shall be equal to eighty percent (80%) for eligible Executives and ninety percent (90%) for eligible Exempt and Non- Exempt employees of the premium cost for health insurance coverage based on the employee’s plan selection and participation level (e.g., Employee only coverage, Employee + 1 coverage, or Employee + 2 coverage), less the amount of any contribution provided under Section 5.01, Medical Insurance, of this Resolution.

For Executives, the City’s maximum contribution shall not exceed the cost of eighty percent (80%) of the premium for the second most expensive benefit plan as determined by the employee’s participation level, less the City’s contribution towards medical benefits under PEMHCA. For Exempt and Non-Exempt employees, the City’s maximum contribution shall not exceed the cost of ninety percent (90%) of the premium for the Kaiser benefit plan as determined by the employee’s participation level, less the City’s contribution towards medical benefits under PEMHCA. In no event shall the sum of the City’s contributions pursuant to the provisions of this Section and Section 5.01, Medical Insurance of this Resolution exceed eighty percent (80%) for Executives and ninety percent (90%) for Exempt and Non-Exempt employees of the Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 11 premium cost for the CalPERS medical insurance plan in which the employee is enrolled.

The City shall continue to provide flexible benefit allowances as provided in this Section unless amended or repealed by the City Council.

Contributions to an employee’s 125 Plan account shall be used only for payment of those benefits that are available through the City’s 125 Plan. The City will not treat any contributions made to the 125 Plan as compensation subject to income tax withholding unless the Internal Revenue Service (IRS) and/or California Franchise Tax Board (FTB) indicates that such contributions are taxable income subject to withholding. Each employee shall be solely and personally responsible for any federal, state, or local tax liability of the employee that may arise out of the implementation of this Section or any penalty that may be imposed therefore.

Each employee shall file an election in writing during the month of open enrollment for medical insurance each year as to how the monies in the employee’s 125 Plan account are to be expended during the ensuing year. Thereafter, no changes to designations so made shall be allowed until the enrollment of the following year, except for changes due to an eligible qualifying event.

Each employee shall be responsible for providing immediate written notice to the Director of Human Resources or designee of any change to the number of the employee’s dependents, which affects the amount of the City's payment to the 125 Plan account. An employee who, by reason of failing to report a change in dependents, receives a City payment greater than the amount to which the employee is entitled shall be liable for refunding the excess amounts received via a reduction in the amount paid to the employee's 125 Plan account in subsequent months. Changes to flexible benefit contributions associated with changes in an employee's number of dependents shall take effect at the start of the first (1st) pay period in the month following the month in which notice of the change is received by the Human Resources Department. No retroactive increases to the flexible benefit allowance provided by the City shall be allowed.

5.03 Federal or State Health Plan
If, pursuant to any federal or state law which may become effective subsequent to the effective date of this Resolution, the City is required to pay contributions or taxes for hospital, medical, dental care, prescription drug, or other health benefits to be provided to employees under such federal or state act, the City's obligation to furnish the same benefits under the Hospital Medical-Surgical-Dental Care and Prescription Drug Plans shall be suspended, and the contributions agreed to be paid monthly hereunder by the City under Sections 5.01, Medical Insurance, 5.02, Flexible Benefits Allowance, and

5.05, Supplemental Retirement Benefit, of this Resolution shall be reduced each month by the amounts the City is required to expend during any such month in the form of contributions or taxes to support said federal or state health plan.

If, as a result of such a law, the level of benefits provided by such law for any group of employees or their dependents is lower in certain categories of services than that provided under Sections 5.01, 5.02, and 5.05, the City shall, to the extent practicable, provide a plan of benefits supplementary to the federal or state benefits so as to make Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 12 benefits in each category of coverage as nearly comparable as possible to the benefits provided under said Sections 5.01, 5.02, and 5.05. The City need only expend for this purpose the actual amount required to achieve parity between the benefits provided under Sections 5.01, 5.02, and 5.05 and the benefits provided under any federal or state plan as supplemented in the manner hereinabove described.

If the benefits provided under the federal or state act exceed the benefits provided hereunder in each category of coverage, the City shall be under no further obligation to make any contribution in pursuance of this Section. In the event that the federal or state government enacts a health care program requiring contributions by employees, the City shall reimburse employees for such contributions in the amount by which said employee contribution reduces the City contribution required by the terms of this Resolution.

5.04 Alternate Benefits
A. An alternate benefit in the form of a cash payment is available to those full- time employees in regular or probationary status who: (1) elect to opt-out of receiving City contributions under Section 5.01, Medical Insurance, and 5.02, Flexible Benefits Allowance, and (2) provide proof of medical insurance coverage from a plan other than a City-sponsored plan.

Any cash payments provided under this Section shall be reported to the IRS and the FTB as compensation subject to income tax withholding. Each employee shall be solely and personally responsible for any tax liability that may arise out of the implementation of the alternate benefits. The amount of alternate benefit provided to an employee is based on the level of insurance coverage that the employee could have received if the employee had enrolled in a City-sponsored health insurance plan, as follows:

Employee only – Three hundred and ten dollars ($310.00) per month Employee and one (1) dependent – Four hundred and eighty dollars ($480.00) per month
Employee and two plus (2+) dependents – Six hundred dollars ($600.00) per month
B. A full-time employee who does not receive a City contribution under Section

5.01, Medical Insurance, and 5.02, Flexible Benefits Allowance, and who is enrolled in a City-sponsored health insurance plan as the dependent of another City employee may be eligible to receive an alternate benefit as provided in this Subsection. If the cost to the City of providing an employee with benefits as the dependent of another is less than the cost of enrolling the employee separately in a City-sponsored health insurance plan, then the individual enrolled as a dependent may receive an alternate benefit. The amount of any alternate benefit shall be equal to the amount of savings to the City for enrollment of the employee as a dependent, up to a maximum alternate benefit of one hundred and fifty dollars ($150.00) per month.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 13 The following examples illustrate how alternate benefits will be provided to employees who are enrolled as a dependent in a City-sponsored health insurance plan. For purpose of these examples, assume the following amounts as the City’s total costs towards providing benefits under Section

5.01, Medical Insurance, and 5.02, Flexible Benefits Allowance:

Employee only - total cost of five hundred dollars ($500.00) per month

Employee and one (1) dependent – total cost of one thousand dollars ($1,000.00) per month

Employee and two (2) or more dependents – total cost of fourteen hundred dollars ($1,400.00) per month

Example 1. Employee A and B are spouses who both work for the City of Hayward. Employee A participates in City-sponsored health insurance at the Employee plus 1 level (City cost of one thousand dollars ($1,000.00) per month), with Employee B enrolled as Employee A’s one dependent. If each employee was to participate in a City-sponsored plan as individual employees, then the City’s cost would be five hundred dollars ($500.00) per month for each employee (or a total of one thousand dollars ($1,000.00) per month for two people, each enrolled individually at the employee only level).

Since there is no cost savings to the City for enrolling Employee B as a dependent of Employee A, and vice-versa, then neither employee is eligible to receive an alternate benefit.

Example 2. Employee A and B are spouses who both work for the City of Hayward. They have one child. Employee A participates in City-sponsored health insurance at the Employee +2 or more level (City cost of one thousand four hundred dollars ($1,400.00) per month), with Employee B and the child enrolled as Employee A’s dependents. If Employee B was to enroll in a City sponsored plan individually (City cost of five hundred dollars ($500.00)), and Employee A’s participation was modified to the Employee +1 (City cost of one thousand dollars ($1,000.00)), the City’s total cost for providing benefits to both employees would increase from one thousand four hundred dollars ($1,400.00) to one thousand five hundred dollars ($1,500.00) per month.

Since the City realizes a one hundred dollars ($100.00) savings per month due to Employee B’s enrollment as a dependent of Employee A, Employee B is eligible to receive an alternate benefit. The amount of this alternate benefit will be one hundred dollars ($100.00) per month.

Example 3. Employee A and B are spouses who both work for the City of Hayward. They have two children. Employee A participates in City- sponsored health insurance at the Employee + 2 or more level (City cost of one thousand four hundred dollars ($1,400.00) per month), with Employee B and the two children enrolled as Employee A’s dependents. If Employee B was to enroll in a City sponsored plan individually (City cost of five hundred dollars ($500.00)), and Employee A continued to participate in Employee +2 or more benefits with the two children as dependents (City cost of one thousand four hundred dollars ($1,400.00), the City’s costs for providing Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 14 benefits to both employees would increase from one thousand four hundred dollars ($1,400.00) to one thousand nine hundred dollars ($1,900.00) per month. Since the City realizes a five hundred dollars ($500.00) savings per month due to Employee B’s enrollment as a dependent of Employee A, Employee B is eligible to receive an alternate benefit. The amount of this alternate benefit will be one hundred fifty dollars ($150.00) per month (the maximum alternate benefit available to employees enrolled as dependents of another employee).

C. Enrollment in alternate benefits must be elected each year during open enrollment. Benefit eligibility and alternate benefit amounts may vary from year to year depending on plan premiums.

D. The provisions of this Section shall be administered in accordance with regulations issued by the City Manager or designee which shall include, but not be limited to, the method and frequency of reimbursement to employees for the alternate benefits program(s) selected, the frequency with which employees may exercise the option to change alternate benefits programs, and appropriate procedures for the verification of payments made in pursuance of this Section.

5.05 Supplemental Retirement Benefit
Employees who retire from the City are eligible to receive a supplement retirement benefit. This benefit shall be equal to two hundred thirty-seven dollars and thirty-one cents ($237.31), less the amount provided for under Section 5.01, Medical Insurance, above. This supplemental benefit is provided in the form of a monthly cash payment to the retiree. To receive this benefit, the employee must begin receiving pension benefits within one hundred twenty (120) days of leaving City employment. Retirees are solely responsible for any tax consequences associated with the receipt of benefits under this Section.

5.06 Dental Insurance
The City shall contribute towards dental insurance coverage for full-time employees, other than temporary and provisional employees, and their eligible dependents as provided in this Section.

The City’s contribution on behalf of an eligible employee participating in a City- sponsored dental plan shall be equal to eighty percent (80%) of the monthly premium for dental insurance, as determined by the employee’s enrolled participation level in the City sponsored dental plan. Employees enrolled in dental insurance are required to contribute the remaining twenty percent (20%) of the premium costs for dental insurance coverage.

Monthly premium rates are established on a calendar year basis by the insurance provider, or in the case of a self-funded plan, by a third-party examining plan utilization review, market trends, overall plan costs, and any other industry standard metrics deemed necessary by the third party.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 15 Currently, the City provides insurance coverage through a Delta Dental plan or United Concordia plan. Details regarding benefits and covered services for each plan may be found in the current Delta Dental or United Concordia benefits summaries for the City of Hayward respectively.

The City reserves the right to provide dental care benefits under a plan or through a carrier of its choice. Alternate coverage may be provided through a consortium of public agencies or private employers which may be formed for the purpose of providing dental care benefits for employees or through a program of self-insurance. In the event the City exercises this option, the alternate coverage shall be substantially equivalent to the coverage in effect when a change in carriers takes effect.

5.07 Life Insurance
The City shall pay the cost of providing each employee with a group term life insurance policy equivalent to the employee's annual gross salary. The policy shall include accidental death and dismemberment coverage and the right to conversion at the time of termination of employment to a form of permanent coverage without medical restrictions and without the requirement to demonstrate evidence of insurability.

5.08 Disability Insurance
The City shall continue in effect, at no cost to the employee, the Short Term/Long Term Disability Insurance policy with Lincoln Financial; or any other such successor program which provides benefits comparable to those available under the Lincoln Financial policy. This program shall provide short-term disability benefits based upon two-thirds (2/3) of an employee's current gross salary, up to two thousand seven hundred sixty nine dollars ($2,769.00)/week, after a fourteen (14) day waiting period. Beginning in the fourth month, the long-term disability plan shall provide benefits based upon two- thirds (2/3) of an employee’s current gross salary, up to twelve thousand dollars ($12,000.00)/month.

5.09 Vision Care
The City shall contribute towards vision care insurance for full-time employees and their eligible dependents. Currently, the City provides vision insurance coverage through VSP under a plan that provides for a fifteen dollars ($15.00) deductible, an eye examination, and lenses and frames once per year.

For eligible employees who enroll in a City sponsored vision plan, the cost of the monthly premium shall be shared equally (50/50) between the employee and the City.

The City reserves the right to provide vision care benefits under a self-funded plan or through a carrier of its choice. Alternate coverage may be provided through a consortium of public agencies or private employers which may be formed for the purpose of providing vision care benefits for employees, or through a program of self- Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 16 insurance. In the event the City exercises its option to move to a self-funded plan or to change insurance carriers, any new benefit plan shall provide coverage that is substantially equivalent to the coverage available at the time this option is exercised.

5.10 Benefits for Domestic Partners
The City agrees to provide medical, dental, and vision plan insurance coverage to registered domestic partners of City employees as defined under PEMHCA who are otherwise without such benefit coverage and who register accordingly with the Secretary of State as prescribed by CalPERS.

5.11 Medical, Dental, Vision, Flexible and Alternate Benefits for Certain Part-Time Employees
Employees who are hired in a part-time status and full-time employees who voluntarily assume part-time status shall be entitled to participate in group medical, dental, and vision insurance programs, and to receive a payment from the City to be applied to such plans subject to the following conditions:

1. Except as provided in paragraph 2 below, only those employees hired into positions budgeted for twenty (20) or more hours per week and who consistently work twenty (20) or more hours per week shall be entitled to coverage under group medical and dental plans.

2. The City's contributions towards medical insurance for part-time employees who are eligible to participate in a CalPERS health insurance plan as an “employee” shall be equal to the contribution provided to full-time employees in Section 5.01, Medical Insurance.

3. The City will provide those part-time employees who regularly work more than twenty (20) hours per week (at least a 0.5 full-time equivalent (FTE) with a flexible benefit allowance. The amount of any allowance provided shall be determined in accordance with the formulas contained in Section 5.02, Flexible Benefits Allowance, except that the sum of the contribution provided to a part- time employee who works more than twenty (20) hours per week under Section

5.01, Medical Insurance, plus the amount provided as a flexible benefit allowance shall be based on the total number of hours worked each month by the part-time employee.

For new employees, the City contribution for medical insurance shall be based upon the employee's estimated work schedule during the first (1 st) month of coverage. Thereafter, the actual number of hours worked by the employee each month shall be used to determine the amount of City contribution toward medical insurance premiums in the following month. However, the amount provided shall never be less than the amount required by applicable government codes.

4. The City's payment for dental insurance shall be proportionate to the amounts paid on behalf of full-time employees as specified in Section 5.06, Dental Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 17 Insurance, of this Resolution. The calculation of proportionate payments shall be in accordance with the provisions of paragraph 3 of this Section.

5. The City's payment for vision insurance shall be proportionate to the amounts paid on behalf of full-time employees as specified in Section 5.09, Vision Care, of this Resolution. The calculation of proportionate payments shall be in accordance with the provisions of paragraph 3 of this Section.

6. The City's payment for alternate benefits shall be based upon scheduled hours of work and shall be proportionate to the amounts paid on behalf of full-time employees as specified in Section 5.04, Alternate Benefits, of this Resolution.

The calculation of proportionate payments shall be based upon the hours budgeted for the position.

As an exception to the foregoing, those employees who assume part-time status as a result of a City imposed reduction in hours will continue to receive City payment of medical, dental, and vision insurance premiums and will continue to participate in the 125 Plan on the same basis as for full-time employees.

5.12 Deferred Compensation Plan
A Deferred Compensation Plan has been established for the benefit of City employees.

Employees may contribute to the Plan as provided by the Plan terms.

Except for those changes which are necessary or desirable to obtain or maintain the favorable tax status of the plan, any changes in the written plan document governing the implementation and administration of the Deferred Compensation Plan adopted by the Hayward City Council on May 12, 1981, with respect to termination or modification of the plan will be jointly decided upon by the Administrative Committee as defined in Section 13.00 of the plan document.

5.13 Defined Benefit Retirement Program
The City will continue to contract with CalPERS to provide a retirement program for employees. Benefits shall include:

1. CalPERS Retirement Benefit Formula:
b. Classic Members: 2.5% at 55
c. New Members: 2.0% at 62

2. Fourth Level of 1959 Survivor's Benefits

3. One (1) Year Final Compensation

4. Military Service Credit as Public Service

5. Continuation of Pre-Retirement Death Benefit after Remarriage of Survivor.

6. Five hundred dollar ($500.00) Retired Death Benefit

7. Two percent (2%) Annual Cost-of-Living Allowance Increase Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 18

These benefit plans require an employee contribution of eight percent (8%).

Employees shall pay the full employee contribution of eight percent (8%), which shall be paid by the employee on a pre-tax basis in accordance with the IRS Section 414(h)(2) method of reporting retirement payments.

An employee, who is not eligible for enrollment in CalPERS and who, in accordance with the federal Omnibus Budget Reconciliation Act of 1990, is required to be covered by Social Security or an alternate system, shall be enrolled in the Public Agency Retirement System (PARS). The City shall contribute three and three- fourths percent (3.75%) of covered earnings into the employee's PARS account.

5.14 Car Allowances and Mileage Reimbursement
Except as specifically provided under the terms of an employment agreement, employees are not eligible to receive a vehicle allowance. Employees who are required to drive their personal vehicles for City business will be reimbursed for actual miles driven at the rate established by the IRS.

5.15 Additional Employee CalPERS Contributions

Effective the pay period including July 1, 2017, Exempt and Non-Exempt employees shall contribute a total of three percent (3%) of their salaries to CalPERS as payment of the City’s employer contributions that the City would otherwise be required to pay to CalPERS for these employees (employer-cost share).

Effective the pay period including July 1, 2017, Executive employees shall contribute a total of five percent (5%) of their salaries to CalPERS as payment of the City’s employer contributions that the City would otherwise be required to pay to CalPERS for these employees (employer-cost share).

5.16 Health and Wellness Reimbursement
The City will reimburse full-time Exempt and Non-Exempt employees a maximum of up to six hundred dollars ($600.00) annually and Executive employees a maximum of up to one thousand and two hundred dollars ($1,200.00) annually for expenses associated with health and wellness equipment or programs to support the employee’s health and wellness.

This reimbursement may be used for fees associated with gym or health club memberships, fitness classes (such as yoga, Zumba, or similar), personal trainers, weight loss programs (such as Weight Watchers, Jenny Craig, or similar), and fitness equipment such as (treadmills, stationary cycles, bike stands (to convert a road bike to a stationary cycle), non-motorized bicycles (excluding any road bicycles or scooters that have motors or batteries), full-body strength training equipment, in-house fitness systems, stair climbing machines, elliptical machines, rowing machines, cross-country ski machines, weights, gloves, or exercise mats (or similar), wearable fitness trackers (such as Fitbit etc.), associated parts for equipment previously reimbursed by the City under this provision, or other health and wellness related expenses. Employees may Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 19 not seek reimbursement for apparel, sneakers, or recreational equipment under this program.

Reimbursement of Recurring Fees and Expenses . The City will reimburse full-time Exempt or Non-Exempt employees up to fifty dollars ($50.00) and full-time Executive employees up to one-hundred dollars ($100.00) per month for expenses associated with health and wellness programs.

Requests for reimbursement of monthly fees for health and wellness related expenses must be submitted in writing and accompanied by receipts and proof of monthly membership within forty-five (45) days of the most recent monthly payment made by the employee. Following receipt and approval of the employee’s request, the employee shall receive the health and wellness reimbursement on a monthly basis until the employee indicates they have cancelled the monthly health and wellness related payments. The employee will be expected to inform the City in a timely manner that they have ceased making recurring monthly payments for health and wellness related expenses. Timely notice under this Section shall mean no more than thirty (30) days from when the employee cancels their recurring monthly health and wellness related fees.

Although participants may not be required to produce monthly receipts for health and wellness payments made on a recurring monthly basis, the City, at the discretion of the Human Resources Director or designee, may at any time request receipts to verify monthly payments have been continuous and the participating employee remains eligible to receive the health and wellness benefit in accordance with this Section of the Resolution.

Reimbursement of Non-Recurring Fees and Expenses . For non-recurring health and wellness expenses, the City will reimburse Exempt and Non-Exempt full-time employees up to six hundred dollars ($600.00) and Executive full-time employees up to one thousand two hundred dollars ($1,200.00) for purchases made during that fiscal year. Requests for reimbursement of non-recurring health and wellness related expenses must be submitted in writing and accompanied by receipts and proof of purchase within forty-five (45) days of the date of the receipt. Purchases made through June 30 of a fiscal year shall be deducted from an employee’s available health and wellness funds for that fiscal year.

Expenses reimbursed under this program are subject to the approval of the Director of Human Resources and the City Manager.

The City’s decision to reimburse is final and not subject to dispute.

The Health and Wellness benefit provided by the City of Hayward is subject to the Internal Revenue Service IRC Section 106.

5.17 Professional Development Reimbursement
The City agrees to reimburse all employees except for the classification of Chief Economic Development Officer and Executive classifications for professional development. This reimbursement may be for career development resources such as Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 20 attendance at conferences, training courses, software, the purchase of books, subscriptions to professional journals or magazines, computers and electronic devices, dues to professional organizations, applications or examination fees associated with registration or certification, and other expenses related to professional development including research and training.

Prior to incurring any expense from the professional development fund, employees shall submit a request in writing to the Human Resources Department for preliminary review. Expenses reimbursed under this program are subject to the approval of the Director of Human Resources or designee and final approval of the City Manager or designee.

The City will reimburse Unrepresented Exempt and Non-Exempt employees up to five- hundred dollars ($500.00) for approved purchases made during that fiscal year. All receipts for reimbursement, regardless of aggregate value, must be submitted no later than June 1 of each fiscal year.

5.18 Educational Reimbursement
During the course of this Salary and Benefits Resolution the City shall maintain a fund to provide resources for management employees to pursue educational opportunities and enhancements. Initial funding shall be five thousand dollars ($5,000.00) per fiscal year. At the end of each fiscal year of this Salary and Benefits Resolution the City shall review the educational reimbursement account to determine if the current funding is adequate. In the event funding for the account is not adequate, the City shall meet with the employees covered under this Salary and Benefits Resolution to discuss funding adjustments.

A. Eligibility

1. Any full-time, permanent employee with at least three (3) months of service may apply. Employees in a temporary, provisional, or part- time status are not eligible.

B. Required Qualifications
Employees may request reimbursement for:

1. Attendance at a school of recognized educational standing, including correspondence schools.

2. Subjects and/or professional licenses must relate directly to the employee’s present job or to a reasonably predictable future job with the City.

3. Other expenses may be considered as they directly apply to educational reimbursement, including but not limited to required textbooks, lab materials, and certification fees.

C. Procedures

1. Prior to enrolling in a class or otherwise incurring an expense from the educational reimbursement fund, the employee shall submit a completed Application for Educational Reimbursement to the Human Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 21 Resources Department for preliminary review. The Human Resources Department will review the application and notify the employee’s immediate supervisor and/or the affected Department Director as necessary. The Human Resources Department shall then inform the employee if the employee’s application for reimbursement is approved or denied. If denied, the Director of Human Resources or designee shall provide the rationale in writing to the employee within seven (7) days. Appeals of denials of educational reimbursement under this Section may be made to the City Manager or designee.

2. If employees are required to engage in study of subjects that are required for the position, and are so directed by the City, the entire tuition, and other specifically approved expenses, will be considered training and development and paid by the department rather than covered under this Section.

A maximum of one thousand dollars ($1,000.00) will be available to an employee applying for reimbursement each fiscal year for the remainder of the term of this Salary and Benefits Resolution. Such reimbursement is available only through the Human Resources Department, and as outlined in Administrative Rule 2.5 which may be periodically revised.

5.19 Personal Equipment Stipend
The City agrees to provide a stipend to all Executive classifications and the Chief Economic Development Officer classification for the use of personal equipment in the performance of their work. This stipend may be used at the discretion of the employee to offset costs associated with the use of personal equipment which includes but is not limited to cell phones, computers and electronic devices, and other expenses related to connectivity.

Executive employees shall receive this stipend as a one-time lump-sum payment of $4,200 annually or in installments of three-hundred and fifty dollars ($350.00) per month paid equally over twenty-six (26) pay periods.

5.20 Cellular Phone Stipend
Effective July 1, 2018, All employees except the Chief Economic Development Officer and Executive classifications shall receive a cellular phone stipend of one-hundred dollars ($100.00) per month in equal installments over twenty-six (26) pay periods.

6.00 SALARY ADMINISTRATION

6.01 Salary Administration Policy
The policy governing preparation of a compensation plan shall be that of salary standardization.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 22

6.02 Salary at Time of Employment
The plan may provide a flat salary rate or a salary range for each classification with a minimum, maximum, and one or more intermediate steps. The beginning or normal hiring rate shall usually be at the first step of the range. Every new employee shall be paid the first step upon employment, except that the City Manager or designee may authorize employment at a higher step if the labor supply is restricted or the person to be hired is unusually well qualified.

6.03 Eligibility for Advancement in Pay
Non-executive employees may be advanced to higher steps as merited by progressive improvement in job skills and work performance. The following time-in-step requirements shall normally apply for an employee to be eligible for advancement in pay.

Step Time-in-Step

A t o B ........... Six (6) months
B t o C ............ Six (6) months
C t o D ............ One (1) year
D t o E ............ One and one-half (1.5) years

If warranted for the good of the service or when an employee demonstrates outstanding capacity in performing job duties, advancement may be made prior to completion of the above time-in-step requirements. If the first day of the time-in-step period begins in the first five (5) days of the payroll period, then begin time in step with the start of the payroll period. If not, then time shall begin on the first day of the next payroll period. Advancement in pay, when approved, shall be effective at the beginning of the first pay period immediately following completion of the time-in-step requirements outlined above. If an employee is on leave without pay for more than one (1) month, the period shall be deducted from the employee's accumulated time- in-step.

The City Manager or designee shall review the performance of Executive level employees annually, and advancement in pay is based solely on satisfactory performance. If warranted for the good of the service or when an employee demonstrates outstanding capacity in performing job duties, advancement may be made at the sole discretion of the City Manager or designee. Moreover, beginning in April 2018 and every two years thereafter, a total compensation salary survey of all Executive positions shall be conducted. If a position is below market average, the City Manager may recommend a salary adjustment up to a maximum of the market average. This provision does not prevent a salary survey or subsequent adjustment in circumstances where there is difficulty recruiting or to maintain internal equity.

6.04 Attaining Advancement
An employee must demonstrate that advancement is merited based on job performance. Advancement shall not be made solely because an employee is eligible according to time-in-step requirements. Good attitude and personal conduct, work accomplished, conscientious attendance, safety alertness, efforts at self-improvement, Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 23 and other factors of individual achievement must be evident as appropriate to the position.

6.05 Use of Performance Ratings in Determining Whether Step Advancement is Merited
Performance ratings shall guide supervisors and Department Directors in determining whether step advancements have been earned and should be recommended to the City Manager or designee.

6.06 Withholding Step Advancements
The Department Director or designee has the authority and responsibility to recommend withholding step advancements by the City Manager if they are not merited. The Department Director or designee shall keep their employees informed about their job performance, giving good work its proper recognition and any deficient work all possible guidance and assistance toward improvement. Department Directors or their designee shall notify the employee as to the reasons for withholding step advancements prior to submitting such recommendation to the City Manager.

6.07 Change in Pay Upon Promotion
When employees are promoted, they shall normally receive the first step in the salary range for their new position. However, if such step is equal to or less than their present salary or they would be eligible for step advancement shortly in their previous position, they may be placed into the next step in the salary range of the new position which is close to five percent (5%) above their present salary. When no advancement in salary is granted on promotion, employees may be allowed to carry forward time-in-step accumulation. As an exception, if the employee has acted in the job class or received special assignment pay for the performance of duties related to the classification to which employee is being promoted, the City Manager or designee may approve appointment at a higher step.

6.08 Change in Pay Upon Demotion
When an employee is demoted, whether voluntarily or otherwise, the employee’s compensation shall be adjusted to the salary prescribed for the class to which the employee is demoted. The employee will be placed in a salary step in the demoted classification that is the same as or above the step held prior to demotion provided said demotion is not the result of disciplinary action. If the demotion is a result of disciplinary action, the specific salary step shall be determined by the City Manager or designee, whose decision shall be final. However, if the employee had prior service in the demoted position, the employee’s step on the salary schedule for the demoted position shall not be set at a step that is lower than the step previously held by the employee in that position before the employee’s promotion.

6.09 Change in Pay Upon Reclassification
When a position is reallocated to a classification with a higher pay range and the incumbent employee retains the position, the employee shall normally be placed at the first step in the new range. If no increase in pay results, advancement may be made to the next step immediately above the present salary. When recommended by the Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 24 Department Director or designee and approved by the City Manager, additional advancement may be granted. If no change in salary is granted, the employee may be allowed to carry forward time-in-step accumulation.

When a position is reallocated to a classification with a lower salary range, the incumbent employee’s pay shall not be reduced while the employee continues to occupy the position. If the employee's current rate is below the maximum step of the new range, the employee shall continue at the present salary and carry forward time- in-step accumulation. If the employee's current rate exceeds the maximum step of the new range, the employee’s salary shall be frozen at its current level. When the incumbent leaves the position, a replacement shall normally be hired at the beginning rate.

6.10 Acting Pay
Employees may be assigned to perform the duties of a higher classification on an "acting" basis when, in the judgment of the Department Director or designee, a need exists for work to be performed in such higher classification.

"Acting" assignments shall only be made by the Department Director or designee, and the employee shall be provided with a written notice assigning the employee to the higher classification on an "acting" basis.

Employees assigned in accordance with the foregoing to perform the duties of a higher classification on an "acting" basis for a period of five (5) consecutive days or more shall receive "acting" pay retroactive to the first day of such assignment.

Employees qualifying for "acting" pay shall receive the salary step of the higher classification which represents an increase over the employees’ present salary step.

If the closest step in the “acting” classification is not equal to at least a five percent (5%) increase over the employee's present salary step, the employee shall receive “acting” pay equal to five percent (5%) above the employee’s current pay step, except that the total rate paid (base salary plus any percentage increase) for work performed in “acting” assignment shall not exceed the top step of the salary range for the higher class.

6.11 Bilingual Pay
Employees who are required, in the performance of their duties, to converse with the public in a language other than English and who have demonstrated their competency through a language fluency test administered through the Human Resources Department shall receive bilingual pay in the amount of thirty dollars ($30.00) per pay period.

Employees who are required in the performance of their duties to communicate in writing and/or translate official written documents in a language other than English and who have demonstrated their competency in a second language through a written fluency test administered by the Human Resources Department shall receive an additional seventy dollars ($70.00) of bilingual pay, for a total of one-hundred dollars ($100.00) per pay period.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 25 No more than once every twenty-four (24) months, the City Manager or designee may require an employee receiving bilingual pay to demonstrate continued competency in a second language as a condition of continuing to receive pay under this Section.

Employees who do not demonstrate continued competency will cease receiving bilingual pay until such time as competency is again demonstrated.

6.12 Special Assignment Positions
Special assignment positions within a classification may be established where duties and responsibilities are of a specialized nature by comparison to other positions in the class. Selection of employees to said positions and removal therefrom shall be made by the City Manager or designee. An employee so assigned shall receive a salary increment not to exceed ten percent (10%) of the employee's present salary.

6.13 Salaries
All classifications determined to be three percent (3.0%) or more below the total compensation median for the jurisdictions surveyed as part of the equity studies shall receive a one-time equity adjustment that brings them to the total compensation median. This adjustment shall go into effect the pay period including July 1, 2024.

The Positions and Salaries Resolution shall provide for the salary ranges for the classifications of employment listed in Appendix A.

6.14 “Y-Rated” Salaries
Employees whose classifications are affected by the recalibration of the salary schedule shall be y-rated at their current step until they are advanced to the next step in the range in accordance with applicable provisions of this Resolution. Upon advancement, employees will advance into the adjusted salary schedule listed in Appendix A.

6.15 Salary Adjustments
Cost-of-Living (COLA) adjustments shall be made as follows:

Executives Exempt/Non-Exempt

Four percent (4%) effective the pay
period that includes October 1, 2024

Four percent (4%) effective the pay
period including July 1, 2025.

Four percent (4%) effective the pay
period including July 1, 2026 June 30,
2027.

Five percent (5%) effective the pay period
including October 1, 2024.

Four percent (4%) effective the pay
period including July 1, 2025.

Three percent (3%) effective the pay
period including July 1, 2026 June 30,
2027.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 26

6.16 Salary Survey
A total compensation equity study for all Unrepresented classifications shall be completed no later than December 1, 2026.

The following jurisdictions will be included in the survey: City of Alameda, City of Berkeley, City of Daly City, City of Fremont, City of Palo Alto, City of Redwood City, City of Sunnyvale, City of San Leandro, City of Santa Clara, and City of San Mateo.

The salary survey shall include the monthly base salary and all employee costs paid by the respective agencies. Employee costs include, but are not limited to, employer contributions to medical, dental, vision, and life insurance, as well as long-term disability, short-term disability, deferred compensation, retirement contributions, and phone, car, and uniform allowances.

The bidding and selection process for a survey provider will begin in approximately February 2026.

6.17 Longevity Pay
For purposes of this section only, and unless otherwise specified for Police Chief and Fire Chief all Unrepresented classifications except for Executive classifications are eligible for longevity pay with the City that is contiguous to an employee’s most recent hire date by the City shall be considered for the purpose of calculating continuous service and eligibility for longevity pay.

An employee with fifteen (15) or more years of continuous service with the City shall receive longevity pay of two and a half percent (2.5%) above their base salary.

An employee with twenty (20) or more years of continuous service with the City shall receive additional longevity pay of two and a half percent (2.5%) for a total of five percent (5.0%) above their base salary.

An employee with twenty-five (25) or more years of continuous service with the City shall receive additional longevity pay of two and a half percent (2.5%) for a total of seven- and one-half percent (7.5%) above their base salary.

In no case shall an employee receive more than a total of seven- and one-half percent (7.5%) above their base salary on account of longevity pay.

This benefit shall be implemented effective the pay period including July 1, 2024, for all then-current bargaining unit employees who meet the above years of service thresholds. Going forward, longevity pay shall be implemented the first full pay period following the employee’s anniversary date that triggers eligibility for such pay.

Longevity pay shall be payable on employees’ regular paychecks.

This Longevity Pay shall be reported to CalPERS as Longevity Pay Incentive Pay. The Parties acknowledge that CalPERS makes all final determinations as to the pensionability of any differential pay.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 27

7.00 HOLIDAYS

7.01 Holidays Observed by the City
The following days shall be holidays for all employees:

 New Year's Day (January 1)
 Martin Luther King Day (third Monday in January)
 Lincoln's Birthday (February 12)
 President's Day (third Monday in February)
 Memorial Day (last Monday in May)
 Juneteenth National Independence Day (June 19)
 Independence Day (July 4)
 Labor Day (first Monday in September)
 Admission Day (September 9)
 Indigenous Peoples’ Day (second Monday in October)
 Veteran's Day (November 11)
 Thanksgiving Day (fourth Thursday in November)
 Friday after Thanksgiving Day (Friday following fourth Thursday in  November)
 Christmas Eve Day (December 24)
 Christmas Day (December 25)
 New Year’s Eve (December 31, second half of workday / 4 hours)

If any of said holidays fall on a Sunday, the following Monday shall be observed as a holiday. If a holiday falls on a Saturday, the preceding Friday shall be observed as a holiday. If a holiday falls on an employee's regular day off, or if an employee is scheduled or assigned to work on a holiday, the employee shall be entitled to equivalent time off at a later date, and such time shall be credited to the employee's vacation leave. Scheduling or assignment of holiday work must be approved in advance by the City Manager or designee. The hours for which an employee receives holiday pay shall be based on the employee’s regularly scheduled work hours for the day on which the holiday is observed.

7.02 Holidays for Part-Time Employees
Part-time employees who are regularly scheduled to work twenty (20) or more hours per week shall be entitled to four (4) hours’ pay for each holiday observed for full-time employees. Eligible part-time employees shall receive one-half (1/2) hour of holiday leave with pay for each full hour of leave granted to full-time employees for the New Year's Eve holiday described in Section 7.01, Holidays Observed by the City, of this Resolution.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 28

8.00 VACATIONS

8.01 Vacation Leave Policy
Vacation leave is a benefit and the use of same shall be approved by the City Manager or designee considering the desires and seniority of employees and, more particularly, the workload requirements of the department. Employees shall take vacation leave regularly each year and shall be encouraged to take vacation at least a full week at a time. To give effect to this policy and to realize the greatest benefit from vacation leave for both employee and the City, limitations shall be placed upon the amount of unused vacation leave an employee is allowed to accumulate.

If an employee exhausts their vacation leave, the employee may apply for another eligible paid or unpaid leave (excluding sick leave) as provided for in this Resolution.

If vacation leave is approved and then it is determined that the employee does not have enough vacation leave available to cover the request and no other leave is requested, Payroll will deduct the excess time from another eligible paid leave balance.

No vacation leave accruals will be credited in advance. No vacation leave will be earned while on an unpaid leave.

If vacation leave is used to remain in a paid status while on approved leave under the Family Medical Leave Act (FMLA)/California Family Rights Act (CFRA) or Pregnancy Disability Leave Law (PDLL), the vacation hours used will run concurrently with the state and/or federal leave entitlement.

8.02 Vacation Accruals for Full-Time Employees
All full-time employees, other than temporary and provisional employees, shall accrue vacation leave benefits each payroll period based upon the number of regularly scheduled hours.

The vacation accrual schedule for employees who are budgeted at and work full-time is as follows:

Years of Service Per 80 Hr. Period Hourly Equivalent Annual Up to 5 yrs.................. 3.08 hrs................. 0.0385 hrs............... 80 hrs.

From 5 to 9 yrs........... 4.62 hrs................. 0.0578 hrs............... 120 hrs.

From 10 to 19 yrs....... 6.16 hrs................. 0.0770 hrs............... 160 hrs.

From 20 yrs................ 7.70 hrs................. 0.0963 hrs............... 200 hrs.

An employee will accrue at the next highest benefit level on the employee’s corresponding anniversary date. For purposes of crediting service time for vacation accruals, a former regular employee who is reinstated within one (1) year from the date of the employee’s date of separation shall receive credit for their prior service on a probationary and regular appointment. No service time on a temporary, provisional, or contracted appointment will be credited.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 29 The increases in the vacation leave allowance shall be granted based on full-time, continuous service. An approved leave of absence shall not constitute a break in service for the purpose of this Section, but vacation leave shall not be earned during any period of unpaid absence.

As an exception to the foregoing, the City Manager or designee is authorized to place a new management employee at a position in the vacation schedule which recognizes that said employee has left a similar position with another employer where the employee had substantial vacation benefits.

Vacation leave shall continue to be earned during other authorized leaves with pay.

When a holiday falls during an employee's absence on vacation leave, it shall not be deducted from the employee’s accrued vacation leave.

The maximum vacation accrual cap shall be twice the annual allowance plus forty (40) hours. The vacation accrual cap shall be maintained on a continuous per pay period basis. Exceptions may be permitted upon approval of the City Manager or designee.

In granting such exceptions, the City Manager or designee may specify a time within which such excess vacation leave must be used. It shall be the responsibility of each employee to ensure the full use of vacation leave credits received by scheduling the necessary time off each year.

During the term of this Resolution, employees may cash out up to (120) hours of accrued vacation and/or management leave each year in no more than two (2) payments, at the employee’s discretion, contingent on the employee using a minimum of eighty (80) hours paid vacation and/or management leave in the twelve (12) months preceding the submission of the request and having at least forty (40) hours of vacation and/or management leave remaining after the cash-out. This leave cash out must be consistent with Section 10.09, Management Leave, of this Resolution.

All requests for cash-out shall be submitted through Employee Self Service (ESS) by completing the Request for Management Leave/Vacation Leave Cash Out Form. Employees who intend to cash out leave shall submit an irrevocable request to do so in the calendar year preceding the year in which the cash-out is to be processed. Employees may specify the month(s) in which they wish to receive their cash out in the payment year but cannot split the payout into more than two (2) payments per calendar year. For example, if an employee wishes to cash out eighty (80) hours of leave in calendar year 2025, they must submit their irrevocable request to do so no later than December 31, 2024, and can specify that they wish to cash out forty (40) hours in March 2025 and forty (40) hours in September 2025 at the time of the request. Employees who fail to provide such notice will be paid out for the requested cash out as part of their final payment issued in the applicable calendar year. Payout will be applied to a single bi-weekly payroll, and employees will be responsible for all taxes associated with such payout.

Under no circumstances will an employee be permitted to cash out more than one- hundred twenty (120) hours of management leave or a combination of vacation and management leave each calendar year.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 30

8.03 Vacation Accruals for Certain Part-Time Employees
Only those employees hired into positions budgeted for twenty (20) or more hours per week and who consistently work twenty (20) or more hours per week shall be eligible for vacation leave. Eligible part-time employees, other than temporary and provisional employees, shall accrue vacation leave benefits each payroll period based upon the number of hours the employee works. The hourly equivalent rates are as follows:

Years of Service Hourly Equivalent
Up to 5 yrs.................. 0.0385 hrs...............

From 5 to 9 yrs........... 0.0578 hrs...............

From 10 to 19 yrs....... 0.0770 hrs...............

From 20 yrs................ 0.0963 hrs...............

Notwithstanding the foregoing, employees who are hired in a part-time status and full- time employees who assume part-time status shall accrue vacation benefits each payroll period based upon the total number of hours for which the employee was compensated in the payroll period. To be eligible for this benefit, employees must consistently work a half-time schedule or more. The amount of vacation so accrued shall be proportionate to that earned by full time employees in the same payroll period.

The vacation accrual schedule specified in Section 8.02, Vacation Accruals for Full- Time Employees, of this Resolution and listed above will be used for purposes of prorating vacation leave.

The use of vacation shall be subject to the provisions and all Subsections of this Resolution. The maximum vacation accrual cap shall be twice the annual allowance plus twenty (20) hours. The vacation accrual cap shall be maintained on a continuous per pay period basis. Exceptions to the foregoing may be permitted pursuant to the provisions of Section 8.02 of this Resolution.

8.04 Payment for Unused Vacation Leave
Leave time earned but unused at the date of termination shall be added to final pay. If the employee owes the City for unearned leave taken, the actual time shall be deducted from final pay.

9.00 SICK LEAVE

9.01 Sick Leave Policy
Sick leave is a paid leave. Sick leave shall be allowed in case of an employee’s bona fide illness or injury, or for an employee’s doctor/health appointments. Use of sick leave shall be approved by the employee's supervisor.

Employees shall, whenever possible, make appointments for medical, dental, and other similar purposes on Saturday or other non- work time.

In addition to the foregoing, sick leave may be used as family sick leave to care for an ill or injured family member or to take a family member to a doctor appointment. A Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 31 “family member” is defined as a child, parent, spouse, registered domestic partner, child of a registered domestic partner, grandparent, grandchild, or sibling. Up to half (1/2) of an employee’s annual sick leave accruals per calendar year may be used as family sick leave.

A certificate from an attending physician stating the expected duration of the family member's illness may be required. Authorization to use additional sick leave for family illness beyond the maximum identified above may be granted by the City Manager or designee when, in the City Manager or designee’s judgment, circumstances warrant the same. Employees may use not more than four (4) hours of sick leave for the purpose of consulting with a physician concerning a serious illness or injury of a member of the employee's immediate family.

Sick leave may also be taken for specified purposes by employees who are the victim of domestic violence, sexual assault, or stalking.

If an employee exhausts all accrued sick leave, the employee may apply for another eligible paid or unpaid leave as provided for in this Resolution. If sick leave is approved and then it is determined that the employee does not have enough sick leave available to cover the request and no other leave is requested, Payroll will deduct the excess time from another eligible paid leave balance.

No sick leave accruals will be credited in advance. No sick leave will be earned while on an unpaid leave.

If sick leave is used for purposes that qualify under a state or federal leave law, such as the Family Medical Leave Act/California Family Rights Act or Pregnancy Disability Leave, then any sick leave used will count towards the state or federal leave entitlement.

9.02 Sick Leave Allowance for Full-Time Employees
All full-time employees, other than temporary and provisional employees, shall accrue sick leave benefits each payroll period based upon the number of hours the employee is entitled. The full-time sick leave accrual rate is 3.704 hours per payroll period (up to ninety-six (96) hours annually). Employees shall accrue sick leave credits in accordance with the foregoing schedule from their initial date of employment.

The use of accrued sick leave shall be subject to the provisions of Section 9.00, Sick Leave, of this Resolution. An absence approved as sick leave shall be deducted from an employee's leave balance at the end of the pay period in which the leave is taken.

There shall be no limit upon the number of hours of unused sick leave which may be accumulated by an employee. Upon separation of an employee, any sick leave balance for which payment has not been made shall be canceled and shall not be restored if a former employee is reinstated.

9.03 Sick Leave Allowance for Certain Part-Time Employees

1. Healthy Workplaces, Healthy Families Act of 2014
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 32 Part-time employees who work thirty (30) or more days within a year shall receive sick leave in accordance with the Healthy Workplaces, Healthy Families Act of 2014 and City Administrative Rule (AR) 2.56, Paid Sick Leave. The annual period shall be based on the part-time employee’s first day of employment and anniversary date thereafter.

Employees eligible for sick leave under the Healthy Workplaces, Healthy Families Act of 2014 shall receive forty (40) hours of sick leave on their first day of employment and may begin using their accrued sick leave after the ninetieth (90th) day of employment.

Employees shall receive forty (40) hours of sick leave at beginning of each fiscal year thereafter and can accrue up to a maximum of six (6) days or forty-eight (48) hours of paid sick leave, whichever is greater. Any unused paid sick leave balance will carry over year to year while continuously employed, up to the six (6) day or forty-eight (48) hour cap.

The use of sick leave so earned by part-time employees shall be subject to the provisions of this Resolution.

2. Part-Time Employees Regularly Scheduled Twenty (20) or More Hours per Week Part-time employees who are regularly scheduled to work twenty (20) or more hours per week shall be entitled to accrue sick leave benefits each payroll period based upon the total number of hours for which the employee was compensated in the payroll period.

The amount of sick leave so accrued shall be proportionate to that earned by full-time employees based on the number of hours worked by the part-time employee. The full-time sick leave accrual rate is three and seven hundred four thousands (3.704) hours per payroll period. The use of accrued sick leave shall be subject to the provisions of this Resolution.

3. Sick Leave Usage
Sick leave is accrued for all regular hours worked and shall continue to be earned during other authorized leaves with pay. There shall be no limit upon the number of hours of unused sick leave that may be accumulated by an employee. Upon separation of an employee, any sick leave balance for which payment has not been made shall be canceled and shall not be restored if a former employee is reinstated.

Sick leave may be taken for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee or an employee’s family member.

Employees may take up to a maximum of forty (40) hours of sick leave per year to care for an eligible family member (the employees’ child, parent, spouse, registered domestic partner, grandparent, grandchild, sibling). A certificate from an attending physician stating nature and extent of the family member's illness may be required in cases of suspected abuse of this provision.

Sick leave may also be taken for specified purposes by employees who are the victim of domestic violence, sexual assault, or stalking.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 33

9.04 Sick Leave Notice and Certification
In order to receive compensation while absent on sick leave, employees or someone on their behalf shall notify the immediate supervisor prior to or within thirty (30) minutes before the time set for reporting to work. The City Manager or designee may waive this requirement upon presentation of a reasonable excuse by the employee.

Employees shall file a personal affidavit or physician's certificate with their supervisor if required by the City Manager or designee for any use of sick leave.

After three (3) consecutive working days' absence, the supervising authority may require an appointment and/or physician's certificate. If employees become ill while on vacation, periods of illness may be charged to sick leave upon presentation of a physician’s certificate certifying duration of illness. In cases of frequent use of sick leave, employees may be requested to file physician's statements for each illness, regardless of duration, to the extent allowed by law.

A physician’s certificate must include the name and signature of the attending physician, the date and time the employee was seen by the physician, and the physician’s certification that the illness or injury was of such nature to prevent the employee from performing their job. Employees may also be required to take an examination by a physician designated by the City and to authorize consultation with their own physician concerning their illness.

Sick leave shall not be granted for absences caused by intoxication or excessive use of alcoholic beverages. As an exception to the foregoing, sick leave may be authorized for the treatment of alcoholism or substance abuse when such condition is diagnosed by a competent medical authority.

These same requirements may also be applied for family sick leave requests.

9.05 Payment for Unused Sick Leave
Any employee leaving employment of the City in good standing after having completed twenty (20) years of continuous public service with the City, or upon retirement from the City for service or disability with at least ten (10) years of service, or upon termination of employment by reason of death, shall receive payment for a portion of that sick leave earned but unused at the time of separation.

The amount of payment for unused sick leave shall be based on the employee’s accumulated unused sick leave balance at the time of separation (up to a maximum of two thousand four hundred (2400 hours)), times the employee’s hourly rate of pay at time of separation plus seven percent (7%), times the number of whole years of continuous service, times the percentage factor from the following table:

 Zero percent (0%) to sixty-five percent (65%) of maximum eligible sick leave accrual = 1%

 Sixty-five and one-hundredth percent (65.01%) or more of maximum eligible sick leave accrual = one and fifteen one-hundredths percent (1.15%), provided the employee has twenty-five (25) years of service. If the employee Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 34 has less than twenty-five (25) years of service the payout percent will equal one percent (1%).

For the purposes of this Section, the maximum eligible sick leave accrual will be calculated as the number of whole years of service times ninety-sixty and two-tenths (96.2) sick leave hours. The following examples illustrate how sick leave payouts will be provided to employees under this Section:

Example 1. Employee A is retiring after twenty and seven-tenths (20.7) years of service. Employee A has one thousand three hundred thirty-five and four-tenths (1335.4) hours of unused sick leave at time of retirement. The maximum number of sick leave hours Employee A could have accrued over the course of her employment with the City was ninety-six and two-tenths (96.2) hours x twenty (20) years = one thousand nine hundred twenty-four (1924.0) hours. Her total sick leave hours one thousand three hundred thirty-five and four-tenths (1335.4) are equal to sixty-nine and four-tenths percent (69.4%) of the total maximum eligible sick leave accrual one thousand three hundred thirty-five and four-tenths (1335.4) ÷ one thousand nine hundred twenty-four (1924.0) x 100 = sixty-nine and four-tenths percent (69.4%).

Employee A did retain greater than sixty-five percent (65%) of the maximum eligible sick leave accrual, however, employee A does not have twenty-five (25) years of service. Therefore, employee A is only eligible to receive 1% of unused sick leave balances for every whole year of service. Employee A hourly rate is forty-two dollars and thirty-five cents ($42.35). Employee A sick leave payout hourly rate is forty-two dollars and thirty-five cents ($42.35) x 1.07 = forty-five dollars and thirty-one cents ($45.31). Employee A sick leave payout calculation is as follows:

One thousand three hundred thirty-five and four-tenths (1335.4) hours x forty-five dollars and thirty-one cents ($45.31) x twenty (20) years x .01 = twelve thousand one hundred and one dollars and forty cents ($12,101.40)

Example 2. Employee B is retiring after thirty and two tenths (30.2) years of service.

Employee B has two thousand four hundred and fifty-seven and eight tents (2457.8) hours of unused sick leave at time of retirement. The maximum number of sick leave hours employee B could have accrued over the course of employee B employment with the City was ninety-six and two-tenths (96.2) hours x thirty (30) years = two thousand eight hundred and eighty-six (2886.0) hours. Employee B total sick leave hours two thousand four hundred and fifty-seven and eight tents (2457.8) are equal to eighty-five and two-tenths percent (85.2%) of the total maximum eligible sick leave accrual two thousand four hundred and fifty seven-tenths (2457.8) ÷ two thousand eight hundred and eighty six (2886.0) x 100 = eighty-five and two-tenths percent (85.2%)). Employee B retained greater than sixty-five percent (65%) of employee B maximum eligible sick leave accrual, and employee B has more than 25 years of experience. Therefore, employee B would be eligible for one and fifteen one- hundredths percent (1.15%) of his unused sick leave balances for every year of service. Employee B hourly rate is $41.18. Employee B sick leave payout hourly rate is forty-one dollars and eighteen cents ($41.18) x 1.07 = forty-four dollars and six cents ($44.06). Employee B sick leave payout calculation is as follows:

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 35 Two thousand four hundred (2400) hours (max allowed) x forty-four dollars and six cents ($44.06) x thirty (30) years x .0115 = thirty-six thousand four hundred eighty- one dollars and sixty-eight cents ($36,481.68)

Payment of unused sick leave for part-time employees shall be determined using a pro-rated maximum accrual of sick leave hours and a pro-rated cap on the maximum number of hours that are subject to cash-out. The percentage applied for pro-rating shall be determined based on the average number of hours worked during the one (1) year period immediately preceding separation. For example, if the employee worked one thousand forty (1,040) hours during the year before separation, or the equivalent of 0.5 FTE, then the pro-rated maximum accrual will be 0.5 x ninety-six and two-tenths (96.2) hours, or an annual accrual rate of forty-three and one-tenth (43.1) hours. The pro-rated cap for this same employee will be 0.5 x two thousand four hundred (2,400) hours or one thousand two hundred (1,200) hours.

That portion of an employee's sick leave balance for which payment is not provided shall be canceled and shall not be restored if said employee is reinstated.

Employees hired on or after April 1, 2012, shall not be eligible to receive any sick leave cash-out benefits under this Section. The Fire Chief and Police Chief are subject to the Payment for Unused Sick Leave as outlined in Section 11.07 and 11.08 of the Salary and Benefits Resolution.

9.06 Catastrophic Injury/Illness Time Bank
Upon approval of the City Manager or designee, a time bank may be established for the benefit of an employee who is incapacitated by a catastrophic illness or injury.

The intent of this program is to assist catastrophically ill or injured employees who have exhausted all available paid accruals to maintain a paid status for a maximum of one (1) year. Catastrophic injury or illness is defined as a medically certified, severe and disabling, non-industrial condition resulting in an employee's inability to work.

Employees may submit requests to donate earned vacation and/or compensatory time on a voluntary basis subject to the conditions listed below.

A. Employees initially eligible to receive leave contributions must have exhausted all other leave balances available including earned vacation, management leave, and earned sick leave.

B. State and federal income tax on the value of leave donated shall be deducted from the recipient employee's pay at the time of crediting.

C. Leave hours that are credited as sick leave to the recipient shall not be reversible.

D. Hours requested to be donated shall be kept in a pledge status until used, shall be credited monthly as sick leave, and shall be subject to the provisions of this Resolution regarding the use and payment of same. Donations shall be credited in the following order:

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1. From donors whose vacation accruals are at or within sixteen (16) hours of the maximum allowed for their classification; then

2. From other donors in random order, to be determined on a draw basis by the Human Resources Department.

3. Donation requests shall be credited in the order specified above in subsequent month(s).

E. Donated leave time shall be changed to its cash value and then credited to the recipient in equivalent hours at the recipient’s straight time hourly rate of pay.

Recipient employees shall not be credited with more than one-hundred percent (100%) of their normally scheduled hours for any given pay period.

F. Donating employees may not reduce their balance of earned vacation below eighty (80) hours by reason of such donations.

G. Recipient employees shall be credited with up to forty (40) hours of donated time upon return to work, provided that sufficient hours remain in pledge status during the pay period immediately preceding the return-to-work date. All undonated, pledged hours exceeding forty (40) shall be returned to the respective donor(s).

H. In the event of the death of the recipient, the recipient’s designated beneficiary shall receive payment for hours credited as donated. Hours remaining in pledge status are not subject to payout to the beneficiary and shall be returned to the donor(s).

This provision shall also allow the use and donation of catastrophic leave to employees who need paid time off to care of a catastrophically injured or ill dependent.

The use of this leave is limited to a one (1) year period for establishment of any Catastrophic Injury/Illness Time Bank. Upon approval of the City Manager or designee, a time bank may be established for the benefit of an employee who has a dependent who is incapacitated by a catastrophic illness or injury. A dependent is defined as a legal spouse, registered domestic partner, legal child under the age of twenty six (26), or legal child of a registered domestic partner under the age of twenty six (26).

An employee must provide a signed medical certification from the treating physician of the employee’s dependent stating that the employee’s dependent has a severe and disabling injury or illness and indicating the amount of time the employee would need to be off to care for the dependent.

An employee shall not be credited with more than one-hundred percent (100%) of the employee’s normally budgeted hours for any given pay period. In no event shall an employee receive donated paid leave in addition to any paid benefit provided to the employee for time off to care for the employee’s dependent that will result in the employee receiving more than one-hundred percent (100%) of the employee’s base salary for the pay period. Records of any paid benefit provided to the employee for Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 37 time off to care for a dependent must be provided by the employee to Payroll for integration with catastrophic leave.

Employees can donate paid leave to an employee who has a dependent with a catastrophic injury/illness under the same terms and conditions as for an employee who has a catastrophic injury/illness.

Employees can utilize catastrophic leave for up to a one (1) year period. The period starts for the first day of use of catastrophic leave. For example, if catastrophic leave starts on July 1, 2024, it can only be used up until June 30, 2025. Leave can be taken on an intermittent basis if approved by the City Manager or designee but will not exceed catastrophic leave usage past the one (1) year leave period.

Any leave used for purposes that qualify under a state or federal leave law, such as the FMLA/CFRA/PDLL will count toward any state of federal leave entitlements. If an employee is unable to return to work and has exhausted all accrued leave entitlements, the employee may be retired for disability and/or separated.

10.00 MISCELLANEOUS LEAVES

10.01 Bereavement and Reproductive Loss Leave
All full-time employees, other than temporary and provisional employees, shall be granted bereavement leave and reproductive loss with pay for not more than five (5) workdays upon, a reproductive loss or the death of a close relative or registered domestic partner. Reproductive loss events include failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction. Close relatives are defined as child, children-in-law, someone else related by blood or in a family-like relationship (“designated person”), and domestic partner registered with the City in a manner prescribed by the Human Resources Department. When additional time is desired, and upon a supervisor’s review and approval, all full-time employees may be allowed to take accumulated vacation or management leave.

Upon request of the City, the employee shall furnish proof of the relationship to the deceased, such as a written notice to their supervisor stating that they certify their relationship to the deceased.

All full-time employees are allowed a maximum of twenty (20) days of reproductive loss in a twelve (12) month period if multiple events of reproductive loss occur. Full- time employees may utilize the initial three (3) paid workdays plus two (2) unpaid workdays for an initial event. The remaining seventeen (17) allowable reproductive loss days are unpaid. Reproductive loss leave must be taken within three (3) months of the event or end of CFRA/FMLA or other protected leave, if used.

Part-time employees who work a continuous schedule of twenty (20) or more hours per week shall be granted bereavement or reproductive loss leave with pay as necessary on the same basis as full-time employees, except that the leave shall be prorated based on the number of hours worked.

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10.02 Jury Leave
An employee summoned to jury duty shall inform their supervisor and, if required to serve, may be absent from duty with full pay. Any jury fees received by an employee shall be remitted to the City, excluding mileage reimbursement.

10.03 Military Leave
Military Leave shall be granted in accordance with the provisions of state and/or federal law. All employees entitled to military leave shall give the City Manager an opportunity, within the limits of military requirements, to determine when such leave shall be taken.

10.04 Worker’s Compensation Leave
For an employee injury or disability falling within the provisions of the State Workers' Compensation Disability Act (SWCDA), disability compensation at the rate allowed under the SWCDA shall be the basic remuneration during the employee's period of disability. Compensation under the SWCDA will be provided through payroll or the City’s third-party administrator. Employees may elect to use their own personal paid leave to supplement any workers’ compensation benefits received. If any paid leave is used, the employee must contact Human Resources Department and integrate the leave with any temporary disability benefits paid under the SWCDA so that compensation does not exceed 100% of an employee’s regular pay.

The City reserves the right to withhold payment of any disability benefits until such time it is determined whether or not the illness or injury is covered under the SWCDA.

10.05 Family and Medical Leave / California Family Rights Act Employees may be eligible for leave under the FMLA and/or the CFRA. The administration of any FMLA or CFRA leave provided for under this provision shall be in accordance with the provisions of the FMLA and the CFRA. Leave provided under this provision may run concurrently with other leaves provided under this Resolution as designated by the Human Resources Department. Additional information regarding available leave benefits is set forth in City Administrative Rule 2.45, as that Rule may be revised.

10.06 Pregnancy Disability Leave
Employees may be eligible for leave under the California PDLL. The administration of any leave given under the PDLL shall be in accordance with the provisions of the PDLL.

Leave provided under this provision may run concurrently with other leaves provided under this Resolution. Additional information regarding available leave benefits is set forth in City Administrative Rule 2.45, as that Rule may be revised.

10.07 Leave of Absence
The City Manager or designee, upon written request of a full-time employee, other than a temporary or provisional employee, may grant for the good of the service a leave of absence without pay for a maximum period of one (1) year. Consideration for granting Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 39 leave will consider the employee’s previous time off, reason for request, business needs, etc.

Leaves hereby authorized shall include medical leaves, educational leaves, parental leaves, and leave for any other purpose promoting the good of the service. Part-time employees are eligible for leaves of absence on a pro-rata basis (e.g., half-time employees are eligible for one-half the leave of absence duration of a full-time employee, i.e., a maximum of six (6) months duration). Whenever granted, such leave shall be in writing and signed by the City Manager or designee. Upon expiration of such a leave, the employee shall be reinstated to the position held at the time the leave was granted. Failure of the employee to report promptly at the expiration or within a reasonable time after notice to return to duty shall terminate the employee's right to be reinstated.

All eligible paid leaves must be exhausted during any leave granted under this provision. Should employees exhaust their leave balance while on a leave of absence, all remaining time will be without pay. If a Leave of Absence is used for purposes that qualify under a state or federal leave law, such as the FMLA/CFRA or PDLL, the leave taken will count towards the state or federal leave entitlement. If an employee is unable to return to work and has exhausted all available leave entitlements, the employee may be retired for disability or separated. No benefits will be provided during this period except as provided below. Health coverage may be continued, but at the employee’s own cost.

10.08 Parental Leave
Employees shall be granted forty (40) hours of leave with pay at their current straight- time hourly rate upon the birth of a child, or when a child begins residence with an employee who has commenced adoption proceedings with full intent to adopt. Part- time employees hired into positions budgeted for twenty (20) or more hours per week and who consistently work twenty (20) or more hours per week shall be granted proportionate leave based on their work schedules. Leave must be taken within one (1) year from the date of birth or placement of the child.

In addition, a new parent may use up to one hundred and twenty (120) hours of earned sick leave upon the birth of a child or when a child begins residence with an employee who has commenced adoption proceedings. Any leave granted under this provision shall run concurrently with FMLA/CFRA leave.

10.09 Management Leave
The City Council wishes to acknowledge the special public service rendered by the City’s Executive and Exempt employees. In maintaining the City's efficiency and reputation, Executive and Exempt employees in this group work additional hours as required for appearances before the City Council, City Boards, and Commissions, residents' groups, and intergovernmental bodies; for maintenance of essential services during emergencies; and for accomplishment of work assignments which often impose irregular hours and time expenditures far above the conventional forty (40) hour workweek. Under such circumstances, these employees neither expect nor receive overtime pay. However, upon being regularly required to work throughout the year beyond the normal workweek, an employee shall be provided up to two (2) weeks' Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 40 annual management leave. Upon request of an employee, the City Manager or designee may authorize additional management leave.

Employees may cash out up to eighty (80) hours of management leave each fiscal year.

Employees may cash out up to an additional forty (40) hours of management leave and/or vacation leave, for a total of one-hundred twenty (120) hours of leave, each fiscal year in no more than two (2) payments, at the employee’s discretion, contingent on the employee using a minimum of eighty (80) hours’ paid vacation and/or management leave in the twelve (12) months preceding the request and must have at least forty (40) hours of vacation and/or management leave remaining after the cash out.

Under no circumstances will an employee be permitted to cash out more than one- hundred twenty (120) hours of management leave or a combination of vacation and management leave each fiscal year.

All requests for cash out must be submitted through ESS by completing the Request for Management Leave/Vacation Leave Cash Out Form; requests must be processed and paid out on a paycheck date in the respective calendar year. For example, if a request is received for a pay period that ends in December of the respective year but results in a paycheck the following calendar year, this request will not be processed as the payout must occur on a paycheck in the respective calendar year. Payout will be applied to a single bi-weekly payroll and employees will be responsible for all taxes associated with such payout.

11.00 MISCELLANEOUS PROVISIONS

11.01 Notification of Address
All employees, including those on a leave of absence, shall keep the Human Resources Director or designee always informed as to their current home address, no later than ten (10) days after such change of address.

11.02 Restrictions on Outside Work
Gainful employment outside an employee's regular City position shall be considered a privilege subject to regulation and not a right. No employee shall engage in a gainful occupation outside of the employee’s City position which is incompatible with the employee's City employment or which is of such a nature as to interfere with satisfactory discharge of the employee’s regular duties. Any employee who wishes to engage in or accept such employment may do so after having first obtained written approval of the City Manager or designee. Approval of outside employment will be granted for a period not to exceed one (1) year. Employees wishing to continue outside employment will need to re-apply for approval of outside work upon the expiration of the current approval. Violation of this Section shall be cause for disciplinary action.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 41

11.03 Employee Health and Medical Examinations
When in the judgment of the City Manager or designee, an employee's health or physical condition may have an adverse effect on the performance of duties or affect the safety or health of fellow employees, the employee may be required to undergo a medical examination at City expense.

Based on authoritative medical advice, the City Manager shall determine whether an employee is physically incapacitated for the duties of the position and may take whatever action the City Manager deems appropriate. The determination and resultant action may be the subject of appeal to the Personnel Commission for its review and recommendation.

Those employees designated by the City Manager shall also undergo, at City expense, routine medical examinations. The frequency of these examinations and the examining physician shall also be designated by the City Manager.

11.04 Conversion of Compensatory Time
An employee promoted from another representation unit to a classification in the Unrepresented Executives, Management, City Manager, Human Resources, & City Attorney Employees Unit will be required at the time of promotion to redeem all accrued compensatory time at the straight time hourly rate immediately prior to promotion. As an exception to the foregoing, an employee may elect to have the compensatory time transferred to the Deferred Compensation Plan pursuant to Plan rules.

11.05 Americans with Disabilities Act (ADA)
The City recognizes its obligation under the law to meet with individual employees who allege a need for reasonable accommodation in the workplace because of a disability.

The City will engage in the interactive process with qualified employees to determine if a reasonable accommodation is available. In the case of an employee with a disability, managers and supervisors may be informed of necessary restrictions on the work or duties of the employee and any agreed upon reasonable accommodations.

11.06 Potential Changes in Wages and Benefits
The City agrees that leave, holidays, fringe benefits, and annual across-the-board salary increases granted to Unrepresented Exempt and Non-Exempt employees will be equal to those granted to members of the Hayward Association of Management Employees.

11.07 Fire Chief Position
Section 5.00, Benefit Plans, Section 6.00, Salary Administration, and Section 11.06, Potential Changes in Wages and Benefits, of this Resolution detailing employee benefit plans and across-the-board salary increases shall not apply to the Fire Chief.

Instead, the employee benefits for the Fire Chief will be the same as those set forth in any collective bargaining agreement between the City and the Hayward Fire Chiefs Association.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 42 The Fire Chief will be eligible to participate in the City’s salary schedule as adopted by City Council, Retirement Program, Longevity Pay, and Education Incentive Pay Program and shall receive certification pay for possessing and maintaining a valid emergency medical technician certification and/or paramedic certification under the same terms and conditions provided to employees represented by the Hayward Fire Chiefs Association, and as outlined in Appendix C. Except as specifically provided in Appendix C., this section all other provisions of this Resolution shall apply to the Fire Chief.

This Section shall remain in effect until thereafter amended or rescinded by the City Council.

11.08 Police Chief Position
Section 5.00, Benefit Plans, Section 6.00, Salary Administration, and Section 11.06, Potential Changes in Wages and Benefits, of this Resolution shall not apply to the Police Chief. Instead, employee benefits for the Police Chief will be the same as those set forth in any collective bargaining agreement between the City and the Hayward Police Officers Association (HPOA) and as outlined below. Section 9.00 Sick Leave in the Salary and Benefits Resolution for Unrepresented Management Employees shall not apply to the Police Chief. Instead, payment for unused sick leave shall be the same as set forth in any collective bargaining agreement between the City and the Hayward Police Management Unit (HPMU).

Moreover, based on satisfactory performance as determined by the City Manager, salary adjustments will be equivalent to those for the Police Chief are subject to the City’s salary schedule as adopted by City Council. In addition, the Police Chief is eligible to participate in the Retirement Benefit Program, Continuous Service Pay, and Education Incentive Pay Program as outlined on the same terms as members of the HPMU and as outlined in Appendix D. Except as specifically provided in Appendix D., this Section, all other provisions of this Resolution shall apply to the Police Chief.

This Section shall remain in effect until thereafter amended or rescinded by the City Council.

11.09 Duration
This Resolution is intended to provide authorization for salaries, benefits, and other terms and conditions of employment beginning July 1, 2024, and until this Resolution is thereafter amended or rescinded by the City Council.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 43

APPENDIX A – Salary Schedule

Classification Title Status
Job
Code Service Type Step A Step B Step C Step D Step E
ASSISTANT CITY MANAGER Executive U735 Unclassified Hourly 133.37 140.06 147.05 154.41 162.13

COMMUNICATIONS AND MARKETING

OFFICER /
PUBLIC INFORMATION OFFICER (PIO) Executive U311 Unclassified Hourly 80.80 84.85 89.07 93.54 98.23 DEPUTY CITY MANAGER Executive U505 Unclassified Hourly 104.30 109.50 114.99 120.75 126.77

DIRECTOR OF DEVELOPMENT
SERVICES Executive U700 Unclassified Hourly 108.22 113.62 119.33 125.30 131.55 DIRECTOR OF FINANCE Executive U725 Unclassified Hourly 111.95 117.53 123.43 129.59 136.06 DIRECTOR OF HUMAN RESOURCES Executive U705 Unclassified Hourly 109.02 114.45 120.18 126.19 132.49

DIRECTOR OF INFORMATION

TECHNOLOGY /
CHIEF INFORMATION OFFICER (CIO) Executive U720 Unclassified Hourly 121.28 127.30 133.69 140.39 147.39 DIRECTOR OF LIBRARY SERVICES Executive U710 Unclassified Hourly 102.00 107.09 112.47 118.09 123.99

DIRECTOR OF MAINTENANCE
SERVICES Executive U715 Unclassified Hourly 120.75 126.78 133.14 139.80 146.78 DIRECTOR OF PUBLIC WORKS Executive U730 Unclassified Hourly 121.02 127.10 133.45 140.15 147.11 FIRE CHIEF Executive F800 Unclassified Hourly 139.41 146.36 153.69 161.38 169.45 CHIEF OF POLICE Executive P500 Unclassified Hourly 140.12 147.10 154.47 162.19 170.30 SENIOR ASSISTANT CITY ATTORNEY Exempt U215 Classified Hourly 116.62 122.50 128.61 135.05 141.81 ASSISTANT CITY ATTORNEY Exempt U210 Classified Hourly 101.87 106.95 112.35 117.95 123.83 DEPUTY CITY ATTORNEY II Exempt U205 Classified Hourly 82.07 86.14 90.44 94.94 99.73 DEPUTY CITY ATTORNEY I Exempt U200 Classified Hourly 69.85 73.32 76.99 80.85 84.88 EQUITY AND INCLUSION OFFICER Exempt U340 Classified Hourly 76.73 80.56 84.59 88.82 93.24 ASSISTANT TO CITY MANAGER Exempt U320 Unclassified Hourly 85.96 90.26 94.76 99.51 104.46 Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 44 MANAGEMENT FELLOW Exempt U300 Classified Hourly 50.68

CHIEF ECONOMIC DEVELOPMENT
OFFICER Exempt U330 Classified Hourly 91.19 95.77 100.57 105.61 110.87

DEPUTY DIRECTOR OF
DEVELOPMENT SERVICES Exempt U515 Classified Hourly 92.06 96.69 101.52 106.60 111.95 DEPUTY DIRECTOR OF FINANCE Exempt U500 Classified Hourly 96.23 101.03 106.09 111.41 116.95

DEPUTY DIRECTOR OF HUMAN
RESOURCES Exempt U520 Classified Hourly 98.82 103.75 108.94 114.40 120.10 HUMAN RESOURCES MANAGER Exempt U135 Classified Hourly 85.09 89.34 93.82 98.51 103.44

SENIOR HUMAN RESOURCES
ANALYST Exempt U120 Classified Hourly 63.14 66.27 69.57 73.06 76.71 HUMAN RESOURCES ANALYST II Exempt U115 Classified Hourly 57.40 60.27 63.29 66.43 69.76 HUMAN RESOURCES ANALYST I Exempt U110 Classified Hourly 52.19 54.81 57.54 60.40 63.42

DEPUTY DIRECTOR OF LIBRARY
SERVICES Exempt U535 Classified Hourly 92.12 96.73 101.56 106.65 111.96

DEPUTY DIRECTOR OF
MAINTENANCE SERVICES Exempt U540 Classified Hourly 92.41 97.01 101.89 106.97 112.33

OPERATIONS SUPPORT SERVICES
MANAGER Exempt U400 Classified Hourly 91.01 95.55 101.33 106.38 111.67

ASSISTANT DIRECTOR OF PUBLIC
WORKS-UTILITIES Exempt U525 Classified Hourly 106.38 111.71 117.29 123.14 129.32

DEPUTY DIRECTOR OF PUBLIC
WORKS Exempt U510 Classified Hourly 94.72 99.46 104.45 109.66 115.15

DEPUTY DIRECTOR OF INFORMATION
TECHNOLOGY Exempt U530 Classified Hourly 96.23 101.03 106.09 111.41 116.95 EXECUTIVE ASSISTANT Non-Exempt U315 Unclassified Hourly 49.44 51.72 54.05 56.37 58.85 SENIOR PARALEGAL Non-Exempt U196 Classified Hourly 50.84 53.40 56.06 58.85 61.80 PARALEGAL Non-Exempt U195 Classified Hourly 46.21 48.52 50.97 53.49 56.18 HUMAN RESOURCES TECHNICIAN Non-Exempt U100 Classified Hourly 47.46 49.83 52.33 54.93 57.66

HUMAN RESOURCES
ADMINISTRATIVE ASSISTANT Non-Exempt U105 Classified Hourly 48.13 50.11 52.08 54.04 56.19 FIREFIGHTER TRAINEE (40 HOUR) Non-Exempt F100 Classified Hourly 57.42 60.28

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APPENDIX B – Employee Status

UNCLASSIFIED SERVICE

Pursuant to Article VIII of the City Charter and Chapter 2, Section 4 of the City’s Municipal Code, the following classifications constitutes the City’s Unclassified Service:

Assistant City Manager
Assistant to City Manager
Chief of Police
Deputy City Manager
Director of Development Services
Director of Finance
Director of Human Resources
Director of Library & Community Services
Director of Maintenance Services
Director of Public Works
Director of Technology Services
Executive Assistant
Fire Chief
Communications & Marketing Officer

CLASSIFIED SERVICE

Pursuant to Article VIII of the City Charter and Chapter 2, Section 4 of the City’s Municipal Code, all positions identified in Appendix A that are not part of the unclassified service shall be included in the City’s classified service.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 46 APPENDIX C – Fire Chief Position Benefits

Retiree Medical Trust

A. Acknowledgement. In accordance with Internal Revenue Code Section 501c the City acknowledges agreement with the Medical Expense Reimbursement Plan of the WSCFF Employee Benefit Trust (hereafter, the “Trust”).

B. Defined Class of Employees Receiving Contributions. “Defined Class” means all full-time employees except employees as described in B(1) below.

1. Employees who previously demonstrated to the City entitlement to full post-retirement medical benefits through a spouse or previous employment and made an irrevocable election not to participate in the Trust.

2. Eligibility Requirements: Fire employees, who have been promoted out of the International Association of Fire Fighters (IAFF) Local 1909 Firefighters, Hayward Fire Officers’ Association and Hayward Fire Chiefs’ Association shall continue participation in the IAFF Medical Expense Reimbursement Plan through mandatory employee and employer contributions after their promotion. City of Hayward has the authority to require mandatory deductions from employee payroll as part of the employees’ compensation package, for contributions to such Plan to correspond to the Memorandum of Understanding between City of Hayward and IAFF, Local 1909 Firefighters, between City of Hayward and IAFF, Local 1909 Hayward Fire Officers Association and the Memorandum of Understanding Between City of Hayward and Hayward Fire Chiefs’ Association (the “CBAs”).

C. Employee Contribution Amount. The City shall withhold a mandatory contribution amount equivalent to one percent (1%) of the monthly base pay of Step E Fire Captain (fifty-six (56) hour) per month (i.e., one-hundred sixty-seven dollars and fifty-eight cents ($167.58) for FY2024), plus an additional contribution based on years of service in accordance with Table C-1 below on a pre-tax basis from the pay of every employee in the Defined Class and shall transmit such contributions to the Trust pursuant to the requirements of (G) below.

Years of service shall be inclusive of enrollment in CalPERS, United States Forestry Service, United States Military Service, CERL-1937 Act, and/or other municipal pension system.

No employee in the Defined Class shall be permitted to opt-out of the mandatory contributions or receive any portion of the contribution in cash.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 47 Employee contributions will be made on a bi-weekly per pay period basis in the amount of seventy-seven dollars and thirty-four cents ($77.34)*, plus an additional contribution based on years of service. The contributions to the plan shall be per pay period as follows:

Table C-1.

Years
of
Service
Biweekly
Employee
Contributions
(1% of Step
E Fire
Captain*)
Additional
Biweekly
Employee
Contribution*
Total
Biweekly
Employee
Contribution*
Total
Monthly
Employee
Contribution*
0-10 $77.34 - $77.34 $154.68
11-20 $77.34 $25.00 $102.34 $204.68
21-22 $77.34 $50.00 $127.34 $248.68
23-24 $77.34 $75.00 $152.34 $304.68
25-26 $77.34 $100.00 $177.34 $354.68
27-28 $77.34 $125.00 $202.34 $404.68
29+ $77.34 $150.00 $227.34 $454.68
*This amount shall be adjusted whenever the Step-E Fire Captain salary is adjusted

D. Vacation Leave transfer.

1. Annual Vacation Leave Transfer. The City and the employee agree that an employee in the Defined Class, by written election may convert up to one hundred twenty (120) hours of accrued vacation one (1) time per year, and the City shall irrevocably transfer the value of the converted vacation leave to the employee’s Trust account on a pre-tax basis subject to the following:

a. The value of converted vacation hours shall be based on the employee’s straight time hourly rate of pay in effect at the time of the conversion, and

b. To be eligible for vacation leave transfer all fifty-six (56) hour employee must have used a minimum of ninety-six (96) hours of paid vacation in the twelve (12) months preceding the submission of the request and have at least forty-eight (48) hours of vacation after the conversion.

c. To be eligible for vacation leave transfer all forty (40) hour employees must have used a minimum of eighty (80) hours of paid vacation in the twelve (12) months preceding the
submission of the request and have at least forty (40) hours of vacation after the conversion.

d. The employee may elect to apply any portion of the value of the converted vacation leave to a qualifying deferred compensation plan up to allowable IRS limits, and
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 48

e. The employee may not convert accrued vacation leave more than one (1) time per calendar year, and

f. No employee in the Defined Class shall have the option to receive a cash payout for the value of the converted vacation leave in lieu of making contributions to the Trust and/or deferred compensation plan.

2. Vacation Leave Transfer at Separation. For every employee in the Defined Class, the City shall, upon the employee’s separation from the City, irrevocably contribute to the employee’s Trust account on a pretax basis, an amount equal in value to one hundred percent (100%) of the payments that would otherwise be paid on behalf of the employee for unused vacation leave.

The employee, by written election received by the City no later than thirty (30) days prior to separation, may elect to apply any portion of the value of the vacation leave accrual to a qualifying deferred compensation plan up to allowable IRS limits. Absent such election, the City shall implement the vacation leave transfer to the employee’s Trust account as set forth above.

No employee in the Defined Class shall have the option to receive a cash payout for the value of the accrued vacation leave in lieu of making contributions to the Trust and/or deferred compensation plan.

Employees excluded from Trust contributions in accordance with Section B (1) shall receive a cash payout for accrued vacation leave upon separation. Such employees may elect to apply any portion of the cash payout to a qualifying deferred compensation plan up to allowable IRS limits.

E. Sick Leave Transfer. For every employee in the Defined Class, the City shall, upon the employee’s separation from the City, irrevocably contribute to the employe’s Trust account on a pre-tax basis, an amount equal in value to one hundred percent (100%) of the payments that would otherwise be paid to or on behalf of the employee for unused sick leave.

The employee, by written election received by the City no later than thirty (30) days prior to separation, may elect to apply any portion of the value of the sick leave accrual pursuant to terms set forth in this section, to a qualifying deferred compensation plan up to allowable IRS limits, or apply accrued sick leave hours to service credit in accordance with the City’s agreement with CalPERS. Absent such election, the City shall implement the sick leave transfer to the employee’s Trust account as set forth above.

No employee in the Defined Class shall have the option to receive a cash payout for the value of the accrued sick leave in lieu of making contributions to the Trust, deferred compensation plan, or CalPERS service credit.

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F. Employer Contribution Amount. The City and the employee agree that effective July 1, 2024, the City shall, on a pre-tax basis, make the following contribution based on years of service on behalf of every member of the Defined Class. Years of service shall be inclusive of enrollment in CalPERS, United States Forestry Service, United States Military Service, CERL-1937 Act, and/or other municipal pension system.

1. The City shall contribute a total of five hundred eight dollars and thirty cents ($508.30) per month (two-hundred thirty-four dollars and sixty cents ($234.60) per pay period). The City contribution shall be allocated to the employee’s Trust account and a City-sponsored 401(a) account in accordance with Table F-1 below:

Table F-1

Years Of
Service
City Trust
Contribution
(Biweekly)
City 401(a)
Contribution
(Biweekly)
Total City
Contribution
(Monthly)
Up to 15 $0 $234.60 $508.30
Greater than 15 $170.39 $64.21 $508.30

2. Employees exempted from Trust participation pursuant to section B(1) shall receive five-hundred eight dollars and thirty cents ($508.30) as a monthly City contribution to the 401(a).

3. The City acknowledges that Trust provisions require participating employees to attain five (5) years of Active Service in the plan to qualify as a Regular Beneficiary, as defined by the plan document. Regular Beneficiaries are entitled to monthly benefits from the Poled Account of the Trust.

In consideration of the elimination of the Supplemental Retirement Benefit pursuant to Section 5.01-A of the Hayward Fire Chiefs Association MOU, and Section 6.10 of the International Association of Fire Fighters (IAFF) Local 1909 MOU, and Section 6.10 of the Hayward Fire Officers’ Association MOU, the City shall make a lump sum contribution on behalf of all employees in the Defined Class retiring with less than five (5) years of monthly Trust contributions, for the term of the MOUs defined herein only, in accordance with the following:

a) The City lump sum contribution shall be made to the employee’s Trust account at retirement.

b) The amount of the City lump sum payment shall be limited to the minimum amount necessary to provide a retiring employee with only the additional Active Service required for the employee to receive monthly benefits from the Trust as a Regular Beneficiary and provide a Monthly Benefit Level of at least five hundred eight Attachment III
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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 50 dollars and thirty cents ($508.30) as calculated on the date that the lump sum payment is made.

c) The City lump sum contribution shall incorporate an actuarially adjusted Active Service Unit (“ASU”) value set forth in Appendix C – Lump Sum Transfer Conversion Table of the Trust plan document in effect at the time of retirement.

d) The City lump sum transfer shall not be inclusive of terminal leave transfers to the Trust pursuant to Section 5.13 D(2) and 5.13 (E) of the Hayward Fire Chiefs Association MOU; Section 6.12 D(2), and

6.12 (E) of the Hayward Fire Officers’ Association MOU, Section

6.12 D (2), and 6.12 (E) of the International Association of Fire Fighters (IAFF) Local 1909 MOU.

e) The City acknowledges that a retiring employee has the option to convert the City lump sum transfer to ASUs in order to attain Regular Beneficiary status, as defined by the Trust or retain the City lump sum transfer in the Individual Employee Account in the Trust and remain as a Limited Beneficiary.

f) A retiring employee in the Defined Class who has previously received five (5) years of contributions to the Trust and attained Regular Beneficiary status in the Trust shall not be eligible for a City lump sum contribution.

g) A retiring employee in the Defined Class shall not have the option to receive a cash payout for the value of the City lump sum contribution in lieu of making contributions to the Trust.

G. Remittance of Contributions. The City shall remit the above contributions directly to the Trust effective the first full pay period occurring after approval of this resolution. Those contributions shall be remitted per pay period, in one aggregate payment, either ACH transfer or wire, directly to the custodian of the Trust within thirty (30) days of the date the payment would have been payable to the Employee.

The City hereby acknowledges receipt of the Trust Agreement governing the Trust and will comply with rules set by the Trust Office in regard to reporting and depositing the required contributions set forth herein.

H. Reporting to the Trust Office. The City shall electronically submit to the Trust Office a report of contributing employees for each contribution sent to the Trust, in the format requested by the Trust, and received by the Trust Office within fourteen (14) days of receipt of the contribution funds.

The City shall also provide an initial report of information for all contributing employees, as reasonably requested by the Trust; and shall send updates to this information to the Trust Office whenever the City has notice of changes to the information.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 51 I. Modification of Employee Contribution and Leave Amounts. The City and Employee acknowledge that IRS rules prohibit a greater recurring contribution amount than the contribution amount set forth in the MOU between the City of Hayward and the International Association of Fire Fighters (IAFF) Local 1909 Firefighters.

J. To the extent authorized by law, all contributions under this section shall be made on a pre-tax basis. The employee assumes full responsibility and liability for tax consequences related to contributions to and/or withdrawals from the Trust.

K. Responsibility for the maintenance and investment of the Trust funds rests solely with the Trust’s Board of Trustees.

L. The City provides no guarantee to the employee regarding the ultimate length of retiree medical benefit payout. Employees who participate in the Trust assume the entire risk from any investment gains or losses associated with these funds or other decline in value. Nothing contained in this section shall constitute a guarantee by the City that assets of the Trust will be sufficient to pay any benefit to any person or to make any other payment during an employee’s life expectancy after retirement. All payments, in the form of employee contributions, to the Trust are defined contributions only. Payments to be paid from the Trust are limited to the remaining assets in the Trust and governed by the Board of Trustees and the current Plan. The parties understand that the above provisions shall in no way obligate the City to incur any additional costs or obligations beyond those already set forth in this resolution.

M. The City’s obligation to provide pre-tax deposits would remain subject to IRS rules as they may be revised in the future. Should the IRS later determine that these contributions are no longer permissible on a pre-tax basis, the City shall cease deducting such amounts from employee compensation.

N. Participation in the Trust shall be the complete and sole responsibility of the employee. The City shall not be involved in the Trust’s design, its administration, or in the benefits paid, nor shall the City have any responsibility for any actions of the Trust or its trustees, or of the employee with respect to the Trust. The City has no fiduciary duty with respect to the Trust.

CalPERS Pension Benefits

Payment of Employers' PERS Contributions

(A) Employees Hired Before January 1, 2013

The provisions described in this Section A apply only to CalPERS eligible employees hired before January 1, 2013, or to eligible employees hired after that date who qualify for pension reciprocity pursuant to Government Code Section 7522.02 (c), referred to as CalPERS “Classic Members.”

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 52 The City shall continue to provide CalPERS Classic Members with retirement benefits in accordance with the existing contract with PERS, and all amendments to that contract, including:

1. Section 21362.2 – 3% @ 50 Retirement Formula;

2. Section 20042 – Final Compensation 1 year;

3. Section 20965 – Unused Sick Leave Credit;

4. Section 21547.7 – Alternative Death Benefit for Local Fire Members Credited with 20 or More Years of Service;

5. Section 21573 – 1959 Survivor Benefits Level 3;

6. Section 21329 – 2% Annual Cost-of-Living Allowance Increase;

7. Section 20516 – Member Sharing Cost of Optional Benefit;

8. Section 20903 – Additional Service Credit 2 Years;

9. Section 21551 – Pre Retirement Death Benefit to Continue after Remarriage;

10. Section 21027 – Military Service Credit for Retired Persons;

11. Section 21024 – Military Service Credit for as Public Service;

12. Section 21635 – Post-Retirement Survivor Allowance to Continue after Remarriage;

13. Section 21624/21626 – Post-Retirement Survivor Allowance;

14. Section 21620 – Retired Death Benefit; and

15. Section 20055 – Prior Service.

As long as the annual Normal Cost required by PERS for the fiscal year is at least thirty percent (30.00%), and as authorized by Government Code Section 20516 (Optional Benefits, Cost Sharing), “Classic” bargaining unit members shall be responsible for payment of the nine percent (9%) employee retirement contribution plus an additional six percent (6%) of their salaries (for a total of 15%) to the California Public Employees’ Retirement System (CalPERS) as payment of the City’s employer contributions (Employer Cost-Share) that the City would otherwise be required to pay to CalPERS for these employees. Said contribution shall be credited to each member’s account as a normal contribution.

The balance, if any, of this contribution shall constitute employee payment of a portion of the employer’s fifty percent (50%) of normal cost as determined by CalPERS. The term “normal cost” is defined in section 7522.04(g) of the Government Code as “the portion of the present value of projected benefits under the defined benefit that is attributable to the current year of service, as determined by the public retirement system’s actuary according to the most recently completed valuation.”

(B) Employees Hired on or After January 1, 2013

This Section B shall apply to CalPERS eligible employees hired on or after January 1, 2013, who do not qualify for pension reciprocity pursuant to Government Code Section 7522.02(c). Referred to as CalPERS “New Members.” The retirement plan for these employees shall be the retirement plan which the City is required to provide for new members pursuant to California Public Employees’ Pension Reform Act of 2013.

i. As required by Government Code Section 7522.25, the safety Option Plan Two (2% @ 50 – 2.7% @ 57) pension formula shall apply.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 53 ii. As required by Government Code Section 7522.32, for the purposes of determining a retirement benefit for these employees, final compensation shall mean the highest average annual pensionable compensation earned during thirty-six (36) consecutive months of service.
iii. As required by Government code Section 7522.30, employees shall have an initial contribution rate of fifty percent (50%) of the total normal cost rate as defined in Section 7522.04(g).
iv. Other contracted benefits include:

1. Section 20965 – Unused Sick Leave Credit;

2. Section 21547.7 – Alternative Death Benefit for Local Fire Members Credited with 20 or More Years of Service;

3. Section 21573 – 1959 Survivor Benefits Level 3;

4. Section 21329 – 2% Annual Cost-of-Living Allowance Increase;

5. Section 20516 – Member Sharing Cost of Optional Benefit;

6. Section 20903 – Additional Service Credit 2 Years;

7. Section 21551 – Pre Retirement Death Benefit to Continue after Remarriage;

8. Section 21027 – Military Service Credit for Retired Persons;

9. Section 21024 – Military Service Credit for as Public Service;

10. Section 21635 – Post-Retirement Survivor Allowance to Continue after Remarriage;

11. Section 21624/21626 – Post-Retirement Survivor Allowance;

12. Section 21620 – Retired Death Benefit; and

13. Section 20055 – Prior Service.

New members shall continue to pay a total of fifteen percent (15%) of reportable wages to fund their pension until such time that a successor agreement is negotiated. The fifteen percent (15%) of reportable wages is comprised of the CalPERS published employee rate, plus the additional contribution to the City’s employer rate that the City would otherwise be required to pay to CalPERS for these employees. Under Section 20516, the additional contributions are as follows:

Effective the pay period including July 1, 2023, 3.75%

If CalPERS enacts another change to the employee rate as reflected in the Annual Valuation Report, the parties will amend this side letter to ensure it accurately reflects new members pay a total of fifteen percent (15%) of reportable wages to fund their pension. This contribution represents the employee’s fifty percent (50%) of normal cost as determined by CalPERS. The balance, if any, of this contribution shall constitute employee payment of a portion of the employer’s 50% of normal cost as determined by CalPERS. In no event shall the employee contribution be less than fifty percent (50%) of the total normal cost rate, as required by Government Code Section 7522.30.

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RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 54 Longevity Pay

The Fire Chief is eligible to receive longevity pay as follows:

Upon completion of fifteen (15) years of service as an employee of the City shall receive a two percent (2%) longevity pay premium on the fifteenth (15th) anniversary, and an additional one percent (1%) longevity pay premium on each succeeding anniversary up to and including the member’s twenty-fifth (25th) anniversary.

Education Incentive Program

The Fire Chief is eligible to participate in the Education Incentive Program as follows:

A. Qualification Requirements.

1. Candidates must complete a minimum of fifty (50) hours of approved study and training during each qualification period as defined below.

a) Employees shall be eligible for additional compensation as defined in Section 4(a) on July 1 providing, they have completed necessary program requirements between January 1 and June 30 during the preceding twelve (12) months. Recertification as required shall take place during the following twelve (12) month period.

b) Employees shall be eligible for additional compensation as defined in Section 4(a) on January 1 providing, they have completed necessary program requirements between July 1 and December 31 during the preceding twelve (12) months. Recertification as required shall take place during the following twelve (12) month period.

2. Approved Study and Training.

(a) Credit will be provided for approved study and training in accredited outside training programs (defined below) provided courses taken do not substantially duplicate the in-service training provided by the Hayward Fire Department.

(b) Candidates may take courses in accredited public or private schools, colleges, or universities if the courses are identified as courses that would improve their efficiency, knowledge, or competency in the performance of their duties.

(c) Candidates may receive credit for participation in California Fire Training Courses offered by the state Department of Education Fire Training Program. Credit for participation in these courses shall be on the basis of one (1) hour of credit for each hour of classroom study.

(d) Enrollment in correspondence courses and educational television courses may be approved providing such courses are acceptable for credit towards a baccalaureate degree by a college or university with maximum accreditation from the Western Association of Schools and Colleges. Such courses must also be consistent with the general aims and requirements of the program.

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(e) Four (4) or more units of approved public school, college, or university work shall be equivalent to fifty (50) hours of classroom study. Credit for special classroom study or training obtained by participation in state Fire Training Courses or other approved sources may be combined with college enrollment to obtain the required fifty (50) hours only upon approval of the Fire Chief.

(f) Candidates who wish to enroll in an outside school, college, or university must submit, in advance of enrollment, a report to the Fire Chief for approval showing the name of the school, the subject, the number of credits or units, the name of the instructor, and the class schedule.

Candidates who wish to appeal the decision of the Fire Chief with respect to the suitability of intended training or course work, may do so by fully stating their position in writing to the Program Review Committee whose decision shall be final.

g) Candidates attending outside schools, colleges, or universities will be required to complete the selected course of study with a minimum grade of "C" or its equivalent. Transcripts or other official notification from the institution shall be furnished to the Fire Chief. For non-graded courses or training programs, a certificate of completion together with evidence of satisfactory attendance shall be required.

3.Teaching.

(a) Candidates who hold a valid California teaching credential or who have completed the requirements for the teaching credential may secure credit by teaching without compensation in an accredited fire service training program or school.

B. Additional Compensation.

1. Employees completing fifty (50) hours of approved study or training during the appropriate qualification period shall receive additional compensation of two and one half percent (2.5%) above the salary step currently held. Said compensation shall be paid for a twelve (12) month period as defined in Section A above.

2. A candidate who obtains an Associate Degree in Fire Science or an appropriately related field as determined by the Program Review Committee shall be entitled to additional compensation of two and one half percent (2.5%) above the salary step currently held. This additional compensation shall be considered "permanent" and not subject to re- qualification requirements. Credit under this section will be allowed for approved state Fire Training Courses successfully completed by employees on the basis of eighteen (18) hours of classroom study being equivalent to one (1) "quarter" unit of academic work (equivalent quarter unit). A maximum substitution of thirty (30) "equivalent quarter units" will be allowed in qualifying for the compensation allowed by this section.

Candidates who have completed ninety (90) quarter units or more of academic work with thirty (30) units in Fire Science, but who do not possess an Associate Degree, may apply to the Fire Chief for the additional compensation authorized by this section. The Fire Chief may either approve such request or refer it to the Program Review Committee for determination. The decision of the Program Review Committee shall be final.

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3. A candidate who obtains a Bachelor's Degree shall be entitled to additional compensation of five percent (5%) above the salary step currently held provided said degree was obtained during the course of employment in the Hayward Fire Department. Compensation shall be provided under this section to candidates who obtained a Bachelor's Degree prior to employment provided that they hold a Fire Science Certificate, or its equivalent, as determined by the Program Review Committee. For the purpose of this section, the work required for a Fire Science Certificate shall be the program requirements currently in effect at Chabot College, Hayward. Candidates who have completed two hundred (200) quarter units or more of academic work with thirty (30) units in Fire Science, but who do not possess a Bachelor's Degree, may apply to the Fire Chief for the additional compensation authorized by this section. The Fire Chief may either approve such request or refer it to the Program Review Committee for determination. The decision of the Program Review Committee shall be final.

4. Employees who qualify for additional compensation under paragraphs B2 and B3 above may obtain an additional two and one half (2.5) salary increase without the need to continue their work in the program as set forth in paragraph B1.

5. Employees who qualify for additional compensation under B3 above and who have completed two hundred and forty (240) hours of additional education calculated at a maximum of forty-eight (48) hours per year shall be entitled to additional permanent compensation of seven and one half percent (7.5%) above the salary step currently held without the need to continue work in the program as required in B3 above.

6. In no event shall any employee receive an Education Incentive Premium in excess of seven and one-half percent (7.5%) by reason of their participation in this program.

7. The City will report all of the above outlined educational incentives in Section 12.01 Fire Education Incentive Program to CalPERS as special compensation.

C. Program Review Committee.

A Program Review Committee consisting of the City Manager, Fire Chief, Director of Human Resources, or their designated alternates, and two representatives of the Association eligible to participate in the Program shall assist in its administration. The committee shall resolve questions of eligibility, hear appeals from candidates with respect to acceptability of course work or training programs, and decide any other questions which may arise in the administration of the program and (or) interpretation of this section. A quorum of three (3) voting members shall be required, and decisions of the committee shall be by majority vote of those in attendance.

D. General Instructions.

1. Each course of study, training, or teaching assignment must be approved in advance by the Fire Chief.

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2. All time spent in qualifying for the program shall be off-duty time and shall entail no cost to the City, nor shall compensation be received from any other source. Benefits allowed an employee under the "GI Bill" shall not be precluded by this section.

3. No credit will be given for seminars, workshops, or mandatory training programs.

Payment for Unused Sick Leave

Any employee leaving the employment of the City in good standing after having completed twenty (20) years of continuous service, or upon retirement from the City for service or disability, or upon termination of employment by reason of death shall receive payment for a portion of that sick leave earned but unused at the time of separation. The amount of this payment shall be equivalent to one percent (1%) of sick leave earned but unused at the time of separation times the number of whole years of continuous employment times an employee's hourly rate of pay at the time of separation. The sick leave pay out rate shall include nine percent (9%) CalPERS pickup for purpose of calculation. For the purpose of this computation, the hourly rate of pay for an employee who works a forty (40) hour week shall be the employee’s annual salary divided by two thousand eighty (2080) hours. Payment of unused sick leave for part-time employees shall be based upon the hourly rate of pay in effect at the time of separation. In lieu of payment for unused sick leave, the employee may receive credit for unused sick leave in accordance with Government Code Section 20965. In the event any unused sick leave is not applied to credit with CalPERS, the balance that is not used for these purposes shall be treated in accordance with the provisions set forth herein. That portion of an employee's sick leave balance for which payment is not provided shall be canceled and shall not be restored if said employee is reinstated

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APPENDIX D – Police Chief Position Benefits

CalPERS Pension Benefits

A. Employee CalPERS Contributions

The City will continue to contract with CalPERS to provide a retirement program for bargaining unit members. Benefits shall include:

1. Three percent (3%) at fifty (50) benefit formula

2. Third Level of 1959 Survivor Benefits

3. Post-Retirement Survivor Allowance

4. One (1) Year Final Compensation

5. Military Service Credit as Public Service

6. Military Service Credit for Retired Persons

7. Continuation of Pre-Retirement Death Benefits After Remarriage of Survivor

8. Continuation of Pre-Retirement Death Benefits After Remarriage of Survivor

These benefit plans require an employee (or member) contribution of nine percent (9%) from police safety employees. Employees shall pay the full employee contribution of nine percent (9%) which shall be paid by the employee on a pre-tax basis.

B. Cost Sharing of Employer Contributions
i. Employees Hired Before January 1, 2013

The provisions described in this subsection (a) apply only to CalPERS eligible employees hired before January 1, 2013, or to an eligible employee hired after that date who qualifies for pension reciprocity pursuant to Government Code Section 7522.02 (c). Referred to as CalPERS “Classic Members.”

As long as the annual Employer Contribution Rate required by PERS for the fiscal year beginning July 1, 2014 is at least thirty percent (30.00%), and as authorized by Government Code Section 20516 (Optional Benefits, Cost Sharing), “Classic” bargaining unit members shall be responsible for payment of the nine percent (9%) employee retirement contribution plus an additional six percent (6%) of their salaries (for a total of 15%) to the California Public Employees’ Retirement System (CalPERS) as payment of the City’s employer contributions that the City would otherwise be required to pay to CalPERS for these employees. Said contribution shall be credited to each member’s account as a normal contribution.

ii. Employees Hired on or After January 1, 2013

This Section b shall apply to CalPERS eligible employees hired on or after January 1, 2013, who do not qualify for pension reciprocity pursuant to

Government Code Section 75522.02(c). Referred to as CalPERS “New Members.” The retirement plan for these employees shall be the retirement plan which the Attachment III
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UN R E P R E S E N T E D M A N A G E M E N T E M P L O Y E E S

RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 59 City is required to provide new members pursuant to the California Public Employees’ Pension Reform Act of 2013.

As long as the annual Employer Contribution Rate required by CalPERS for the fiscal years beginning July 1, 2014, is at least thirty percent (30.00%), and as authorized by Government Code Section 20516 (Optional Benefits, Cost Sharing), “New” bargaining unit members shall pay a total of fifteen percent (15%) of reportable wages to fund their pensions. The fifteen percent (15%) of reportable wages is comprised of the CalPERS published employee rate, plus the additional contribution to the City’s employer rate that the City would otherwise be required to pay to CalPERS for these employees. Under Section 20516, the additional contributions are as follows:

Under Section 20516, after July 1, 2016, employees shall continue to pay an additional contribution of three percent (3.00%). If CalPERS enacts a change to the employee rate as reflected in the Annual Valuation Report, the parties will agree to a side letter to ensure it accurately reflects new members pay a total of fifteen percent (15%) of reportable wages to fund their pension. This contribution currently represents more than the employee’s fifty percent (50%) of the normal cost as determined by CalPERS. The amount paid in excess of fifty percent (50%) of the normal cost shall constitute employee payment of a portion of the employer’s fifty percent (50%) of the normal cost as determined by CalPERS. Said contributions over the fifty percent (50%) threshold shall be credited to each member’s account as a normal contribution.

In no event shall the employee contribution be less than fifty percent (50%) of the total normal cost rate, as required by Government Code Section 7522.30. In the event that fifty percent (50%) of the normal cost exceeds fifteen percent (15%), the employee contribution shall be increased to ensure that the employee contribution is fifty percent (50%) of the total normal cost rate in compliance with Government Code section 7522.30. The City agrees to meet and discuss, at the request of the HPMU, mutually acceptable adjustments to the terms negotiated herein in order to provide equitable treatment of classic and new PEPRA employees.

The City will continue to not treat these contributions as compensation subject to income tax withholding unless the Internal Revenue Service or Franchise Tax Board indicates that such contributions are taxable income subject to withholding.

Each employee shall be solely and personally responsible for any federal, state, or local tax liability of the employee that may arise out of the implementation of this Section or any penalty that may be imposed, therefore.

Continuous Service Pay

For the purpose of this Section only, continuous, paid experience in a relevant classification unique to the Hayward Police Department that is contiguous with the employee’s acceptance into the Police Academy shall be considered experience or the purpose of calculating years of continuous service and eligibility for continuous service pay.

Attachment III
798

S A LA R Y A N D BE N E FI T S RE S O L U T I O N FO R

UN R E P R E S E N T E D M A N A G E M E N T E M P L O Y E E S

RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 60 (a) Experience with the City of Hayward in a police officer sworn capacity for fifteen (15) years or more shall be entitled to “permanent” compensation of three percent (3%) above the basic salary step currently held.

(b) Experience with the City of Hayward in a police officer sworn capacity for twenty (20) years or more shall be entitled to “permanent” compensation of six percent (6%) above the basic salary step currently held.

Effective July 1, 2023:

(c) Experience with the City of Hayward in a police officer sworn capacity for twenty- four (24) years or more shall be entitled to “permanent” compensation of ten percent (10%) above the basic salary step currently held.

(d) Experience with the City of Hayward in a police officer sworn capacity for twenty- five (25) years or more shall be entitled to “permanent” compensation of eleven percent (11%) above the basic salary step currently held.

(e) Experience with the City of Hayward in a police officer sworn capacity for twenty- six (26) years or more shall be entitled to “permanent” compensation of twelve percent (12%) above the basic salary step currently held.

(f) Experience with the City of Hayward in a police officer sworn capacity for twenty- seven (27) years or more shall be entitled to “permanent” compensation of thirteen percent (13%) above the basic salary step currently held.

(g) Experience with the City of Hayward in a police officer sworn capacity for twenty- eight (28) years or more shall be entitled to “permanent” compensation of fourteen percent (14%) above the basic salary step currently held.

(h) Experience with the City of Hayward in a police officer sworn capacity for twenty- nine (29) years or more shall be entitled to “permanent” compensation of fifteen percent (15%) above the basic salary step currently held.

In no case will the Police Chief receive more than a total of fifteen percent (15%) above the basic salary step currently held by reason of the Police Chief’s continuous service, and in no case will the Police Chief receive more than a total of twenty-seven and one- half percent (27.5%) above the basic salary step currently held by reason of the Police Chief’s combined continuous service and participation in the Police Education Incentive Program as outlined below.

Police Education Incentive Program

Police Chief completing the approved study or training requirements in accordance with the Continuing Education Requirements section of the Police Education Incentive Program policy during the appropriate qualification period shall receive additional compensation of two and one-half percent (2.5%) above the salary step currently held.

Said compensation shall be paid for a twelve (12) month period (26 bi-weekly pay periods). The Professional Certification Program established by the California Commission on Peace Officer Standards and Training (POST) shall be made a part of Attachment III
799

S A LA R Y A N D BE N E FI T S RE S O L U T I O N FO R

UN R E P R E S E N T E D M A N A G E M E N T E M P L O Y E E S

RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 61 this policy, and all future revisions to the Professional Certificate Program shall automatically be incorporated herein.

A Police Chief who obtains a POST Intermediate Certificate shall be entitled to additional compensation of two and one-half percent (2.5%) above the salary step currently held. It shall be considered “permanent” and not subject to re-qualification requirements. The additional compensation shall be retroactive to the date the Police Chief is eligible for and submits their application for the POST Intermediate Certificate and their Incentive Pay Request to the Personnel and Training Bureau.

A Police Chief who obtains a POST Intermediate Certificate and who possesses a four (4)-year (BA or BS) degree or higher shall be entitled to compensation of five percent (5%) above the basic salary step currently held. It shall be considered “permanent” and not subject to re-qualification requirements. The additional compensation shall be retroactive to the date the Police Chief is eligible for and submits their application for the POST Intermediate Certificate and their Incentive Pay Request to the Personnel and Training Bureau.

Police Chief who obtains a POST Advanced Certificate shall be entitled to compensation of seven and one-half percent (7.5%) above the basic salary step currently held. It shall be considered “permanent” and not subject to re-qualification requirements. The additional compensation shall be retroactive to the date the Police Chief is eligible for and submits their application for the POST Advanced Certificate and their Incentive Pay Request to the Personnel and Training Bureau.

Police Chief who obtains an Advanced Certificate and who possess a Master’s degree shall be entitled to additional “permanent” compensation of ten percent (10%) above the salary step currently held.

Police Chief who obtains a POST Management Certificate and who possess a Master’s degree shall be entitled to compensation of twelve and one-half percent (12.5%) above the basic salary step currently held. It shall be considered “permanent” and not subject to re- qualification requirements. The additional compensation shall be retroactive to the date the Police Chief is eligible for and submits their application for the POST Management Certificate and their Incentive Pay Request to the Personnel and Training Bureau.

Under this Section, the Police Chief is only eligible to receive additional compensation under Subsections (b), (c), (d), (e), or (f) provided in the table below. The Police Chief cannot combine differentials under (b) through (f). As an exception, the Police Chief receiving additional compensation under Subsections (b) through (f) would also be eligible to receive the two and one-half percent (2.5%) as outlined in Subsection (a) provided they comply with the requirements of that Subsection.

Attachment III
800

S A LA R Y A N D BE N E FI T S RE S O L U T I O N FO R

UN R E P R E S E N T E D M A N A G E M E N T E M P L O Y E E S

RE V I S E D J U LY 1, 2024 AP R I L 21, 2026 62

1Can be combined with incentives earned under (b), (c), (d), (e) or (f).

In no case will the Police Chief receive more than a total of fifteen percent (15%) above the basic salary step currently held by reason of the Police Chief’s participation in the program, and in no case will the Police Chief receive more than a total of twenty-seven and one-half percent (27.5%) above the basic salary step currently held by reason of the Police Chief’s combined participation in the Police Education Incentive Program and continuous service in a sworn capacity as outlined above, Continuous Service Pay.

Attachment III
801

ATTACHMENT IV

HAYWARD CITY COUNCIL

RESOLUTION NO. 26-____

Introduced by Council Member _________

RESOLUTION APPROVING AMENDMENT TO THE EMPLOYMENT

AGREEMENT BETWEEN THE CITY OF HAYWARD AND THE CITY ATTORNEY

AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT

WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and

WHEREAS, the City of Hayward must realize cost saving measures for the upcoming Fiscal Year 2026-27; and

WHEREAS, the City’s Executive Team supports deferring the Cost of Living Adjustment (COLA) increase due for unrepresented executive classifications at the beginning of Fiscal Year 2026-27 to the end of Fiscal Year 2026-27; and

WHEREAS, pursuant to his employment agreement, the City Attorney is due a four percent (4%) COLA increase at the beginning of Fiscal Year 2026-27and has agreed to defer that increase to the end of Fiscal Year 2026-27.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby approves amendment to the employment agreement between the City of Hayward and the City Attorney.

802

ATTACHMENT IV

Page 2 of 2 ends

IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 202

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

803

ATTACHMENT V

HAYWARD CITY COUNCIL

RESOLUTION NO. 26-____

Introduced by Council Member _________

RESOLUTION APPROVING AMENDMENT TO THE EMPLOYMENT

AGREEMENT BETWEEN THE CITY OF HAYWARD AND THE CITY CLERK AND

AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT

WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and

WHEREAS, the City of Hayward must realize cost saving measures for the upcoming Fiscal Year 2026-27; and

WHEREAS, pursuant to her employment agreement, the City Clerk is due a four percent (4%) COLA increase at the beginning of Fiscal Year 2026 -27 and will defer that increase to the end of Fiscal Year 2026-27.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby approves amendment to the employment agreement between the City of Hayward and the City Clerk.

804

ATTACHMENT V

Page 2 of 2 ends

IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

805

ATTACHMENT VI

HAYWARD CITY COUNCIL

RESOLUTION NO. 26-____

Introduced by Council Member _________

RESOLUTION APPROVING AMENDMENT TO THE EMPLOYMENT

AGREEMENT BETWEEN THE CITY OF HAYWARD AND THE CITY MANAGER

AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT

WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and

WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27; and

WHEREAS, the City’s Executive Team supports deferring the Cost of Living Adjustment (COLA) increase due for unrepresented executive classifications at the beginning of the fiscal year to the end of fiscal year 2026-27; and

WHEREAS, t he City Manager previously agreed to forgo the personal equipment stipend and vehicle allowance in her employment agreement for the first year of employment, representing a n approximate four and one- half percent 4.5% reduction in overall compensation; and will continue forgoing the personal equipment stipend and vehicle allowance for an additional six months, through the end of Fiscal Year 2026-27.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby approves an amendment to the employment agreement between the City of Hayward and the City Manager.

806

ATTACHMENT VI

Page 2 of 2 ends

IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

807

Hayward City CouncilApril 21, 2026

Hayward City Council
April 21, 2026