Agenda Packet — Hercules City Council, December 9, 2025

Tuesday, December 9, 2025
6:00 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Dion Bailey
Vice Mayor Chris Kelley
Council Member Alex Walker-Griffin
Council Member Dilli Bhattarai
Council Member Tiffany Grimsley
Dante Hall, City Manager
Christie Crowl, City Attorney
Eibleis Melendez, City Clerk
Meeting Agenda
CLOSED SESSION - 6:00 P.M.; REGULAR MEETING - 7:00 P.M
In-Person in Council Chambers or Via Zoom:

Zoom ID: 865 7349 5338 Zoom Passcode: 496277
Zoom Phone Number: 1-669-900-6833
1 December 9, 2025City Council Meeting Agenda
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. SPECIAL CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M. 1A. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

1. 25-331

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1) - Bruce v. City of Hercules, et al.; United States District Court, Northern District, Case No. 4:25-cv-01297.

IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

V. REPORT ON ACTION TAKEN IN CLOSED SESSION
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 25-316
Herculean Mile Recognition Program - 2025 Award Winners RECOMMENDATION:

Staff recommends the City Council receive an update on the Herculean Mile recognition program and present awards to the winners for the 2025 calendar year.

Staff Report - Herculean Mile Recognition Program
Attach 1 - Herculean Mile Award Winners 2025
Attachments:

IX. AGENDA ADDITIONS/DELETIONS

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2 December 9, 2025City Council Meeting Agenda
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

Individuals wishing to address the City Council are asked to complete a form indicating the name and address of the speaker and the general topic to be addressed. Speakers must make their comments from the podium and will be allowed 3 minutes to discuss their concerns. All public comments are recorded and become part of the public record. A limit of 30 minutes will be devoted to taking public comment at this point in the agenda. If any speakers remain at the conclusion of the initial 30 minute period, time will be reserved at the conclusion of the meeting to take the remaining comments.

XI. PUBLIC HEARINGS
XII. CONSENT CALENDAR

1. 25-323
Meeting Minutes for the Regular Meeting of November 12, 2025 Meeting Minutes for the Regular Meeting of November 12, 2025Attachments:

2. 25-318 Meeting Minutes for the Special Meeting of November 18, 2025 Meeting Minutes for The Special Meeting of November 18, 2025Attachments:

3. 25-321 Approve a Memorandum of Understanding between the City of Hercules and the Hercules Police Officers’ Association
RECOMMENDATION:

Adopt a Resolution Approving:

1. A 2025-2027 Memorandum of Understanding between the City of Hercules (“City”) and the Hercules Police Officers’ Association (“HPOA”); and

2. A Fiscal Year 2025-2026 Master Salary Schedule pursuant to California Public Employees Retirement System (“CalPERS”) effective July 6, 2025 (last updated on November 17, 2025).

Staff Report
Attach 1 - Resolution
Exhibit 1- Hercules HPOA MOU 2025-2027
Exhibit 2 - FY 2025-26 Salary Schedule
Attachments:

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3 December 9, 2025City Council Meeting Agenda

4. 25-322 Approve a One-Time Non Pensionable Payment of 3% of Total Gross Salary for the 2024-25 Fiscal Year for Employees Covered Under the Executive Level, Mid-Management, and Non-Represented Employee Pay and Benefit Plans
RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution approving a three percent (3%) one-time non-pensionable payment for employees covered under the Executive Level, Mid-Management, and
Non-Represented Pay and Benefits Plans and authorize the City Manager to execute any related amendments to the approved 2025-2027 Pay and Benefits Plans.

Staff Report
Attach 1 - Resolution
Attach 2 - Revised 2025-2027 Executive Level Pay and Benefits Plan Attach 3 - Revised 2025-2027 Mid-Management Pay and Benefits Plan Attach 4 - Revised 2025-2027 Non-Represented Pay and Benefits Plan Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-317 Commission and Committee Appointments
RECOMMENDATION:

1. Consider
making appointments to the Hercules Commissions, Regional Boards and Committees to fill vacancies and expired terms.

2. Following Council appointments, direct Staff to prepare and publish the local appointments list pursuant to Government Code 54972 Staff Report - Commission AppointmentsAttachments:

XIV. CITY COUNCIL REORGANIZATION

1. 25-315 Proclamation Commending the Leadership and Service of Mayor Dion Bailey
ProclamationAttachments:

2. 25-320 Selection of Mayor and Vice Mayor
RECOMMENDATION:

City Council to Nominate and Appoint a Mayor and Vice-Mayor.

Staff Report - Selection of Mayor and Vice Mayor
Attach 1 - Council Rules of Procedure
Attachments:

RECESS AND REFRESHMENTS

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4 December 9, 2025City Council Meeting Agenda
XV. DISCUSSION AND/OR ACTION ITEMS

1. 25-319 City Council Regular Meeting Dates for 2026
RECOMMENDATION:

Staff recommends that the Council review the schedule of City Council Regular Meeting Dates in 2026 and consider canceling one or both regular meetings in August.

Staff Report - Meeting Schedule 2026
Attach 1- DRAFT - 2026 Meeting Calendar
Attachments:

XVI. PUBLIC COMMUNICATIONS
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

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5 December 9, 2025City Council Meeting Agenda
XVII. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
This is the time for brief announcements on issues of interest to the community. In accordance with the provisions of the Brown Act, matters which do not appear on this agenda but require City Council discussion may be either (a) referred to staff or other resources for factual information or (b) placed on a future meeting agenda.

1. Regional Committee
a. Contra Costa Mayors Conference
b. Hercules/ Pinole - WasteWater Management
c. League of Cities
d. Water Emerg. Transportation Authority
e. WCCIWMA
f. WCCTAC
g. West Co. Mayors & Supervisors Assoc. Meeting
h. WestCat
I. MCE
j. CCTA
k. East Bay Wildfire Coalition of Governments

2. City Council Committees and Subcommittees
a. Econ. Dev. Subcommittee
b. Traffic and Public Safety Committee
c. East Bay Economic Development Alliance
d. Education Subcommittee

3. Commission Liaisons
a. Community & Library Services Commission
b. Finance Commission
c. Planning Commisison
XVIII. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, January 13 , 2026 at 7:00p.m. in the Council Chambers.

Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956.

Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the City Clerk at (510) 799-8200 (Posted: December 4, 2025)

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6 December 9, 2025City Council Meeting Agenda

INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY COUNCIL AND PLANNING

COMMISSION HYBRID MEETINGS
Attend in Person: Hercules City Council Chambers – 111 Civic Drive, Hercules, CA 94547 Attend via Zoom Teleconference: Details provided below and zoom webinar login, passcode and phone numbers provided on the agenda cover.

How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

Via Zoom: Members of the public may submit a remote public comment via Zoom video conferencing. Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205-6099 or +1-253-215-8782.

Written Comments Submitted Electronically: All comments received before 3:00 p.m. the day of the meeting will be provided to the City Council prior to the meeting and posted to the City’s agenda website and located by clicking on the “meeting details” tab. Written comments received after 3:00 p.m. will be provided to City Council and posted to the agenda website the following day. Written comments will not be read aloud during the meeting. Email comments to [email protected]. Please indicate which item on the agenda you are commenting on in the subject line of your email.

Written comments submitted in person or via mail: Additional ways to provide your public comment is to either drop off your comment in person to the front desk receptionist located in the City Hall lobby or to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 in time to reach the City Clerk no later than 3:00 p.m. on the day of the meeting or you can submit your comment by telephone by calling (510) 799-8208 no later than 3:00 p.m. on the meeting date.

If you need assistance with public comment, please contact: Eibleis Melendez, City Clerk at [email protected] or by calling (510) 799-8200.

All public comments will become part of the official meeting record. As email containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email. The City cannot guarantee that its network and/or the website will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 3:00 p.m. on the day of the Council or Commission meeting.

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7 December 9, 2025City Council Meeting Agenda

OTHER WAYS TO WATCH THE MEETING
Live on Channel 28: City Council meetings will replay the following Thursday at 7:00 p.m. and Saturday at 1:00 p.m.

Planning Commission meetings will replay the following Wednesday at 7:00 p.m. and Saturday at 9:00 a.m.

Video Streamed Live on the City’s Website:

To view City Council and Planning Commission meeting videos online go to: Hercules Meeting Videos.

Instructions to view Live or On-Demand Videos from the City’s website:

1. Go to: Hercules Meeting Videos or https://hercules.legistar.com/calendar.aspx.

2. Locate the desired meeting and date.

3. Click the associated “Video” link (Video status is as follows):

Video = Video is available for on demand viewing.

In Progress = Video is available for viewing during live recording.

Not Available = Video is either unavailable or has not been recorded.

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8 December 9, 2025City Council Meeting Agenda

THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,

PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS

1. SPECIAL ACCOMMODATIONS: In compliance with the Americans with Disabilities Act, if you require special accommodations to participate at a City Council meeting, please contact the City Clerk at 510-799-8208 at least 48 hours prior to the meeting.

2. AGENDA ITEMS: Persons wishing to add an item to an agenda must submit the final written documentation 12 calendar days prior to the meeting. The City retains the discretion whether to add items to the agenda. Persons wishing to address the City Council otherwise may make comments during the Public Communication period of the meeting.

3. AGENDA POSTING: Agendas of regular City Council meetings are posted at least 72 hours prior to the meeting at City Hall, the Hercules Swim Center, Ohlone Child Care Center, and on the City’s website (www.ci.hercules.ca.us),

4. PUBLIC COMMUNICATION: Persons who wish to address the City Council should complete the speaker form prior to the Council's consideration of the item on the agenda.

Anyone who wishes to address the Council on a topic that is not on the agenda and is relevant to the Council should complete the speaker form prior to the start of the meeting. Speakers will be called upon during the Public Communication portion of the meeting. In accordance with the Brown Act, the City Council may not take action on items not listed on the agenda. The Council may refer to staff any matters brought before them at this time and those matters may be placed on a future agenda.

In the interests of conducting an orderly and efficient meeting, speakers will be limited to three (3) minutes.

Anyone may also submit written comments at any time before or during the meeting.

5. CONSENT CALENDAR: All matters listed under Consent Calendar are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Council or a member of the public prior to the time the City Council votes on the motion to adopt.

6. LEGAL CHALLENGES: If you challenge a decision of the City Council in court, you may be limited to raising only those issues you or someone else raised at the meeting or in written correspondence delivered at, or prior to, the meeting. Actions challenging City Council decisions shall be subject to the time limitations contained in Code of Civil Procedure Section 1094.6.

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9 INTRODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEMS

1. 25-316
10 1

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of December 9, 2025

TO: Mayor and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Christopher Roke, Parks and Recreation Director

TOPIC: Herculean Mile Recognition Program - 2025 Award Winners

RECOMMENDED ACTION:

Staff recommends that the City Council receive an update on the Herculean Mile recognition program and present awards to the winners for the 2025 calendar year.

BACKGROUND:

In October of 2023, the Hercules City Council approved a new recognition program named the Herculean Mile award. The award celebrates individuals that have consistently gone above and beyond to make Hercules a better place. The goal is to recognize the many outstanding efforts made by community members.

The Herculean Mile award has two categories: one t hat recognizes community members/business owners, and the other that recognizes city employees. Nominations for deserving community members/business owners and employees were received through a link on the City website, and nominees were evaluated based on guidelines established by the Parks and Recreation Department.

The award is granted three times per year, coinciding with the three seasonal activities guides produced by the Parks and Recreation Department. Each season, the designated committee members will select one community member /business owner , and one employee, as the winner of the Herculean Mile for that season. At the end of the calendar year, these award winners are recognized in front of Council during the December Council meeting where the community can honor them for their contributions and lasting impacts on the City.
11 2

Tonight we recognize the 6 Herculean Mile winners from the 2025 calendar year:

Community Members or Business Owners:
 Arleen Wong (Summer 2025)
 Jamela Smith-Folds (Fall 2025) and
 Joanne Sanchez (Winter/Spring 2026); and

Employees:
 Karin Nestor – Parks and Recreation (Summer 2025)
 Rosalind “Rose” Fernando Contreras – Parks and Recreation (Fall 2025) and  Faye Flores – Information Technology (Winter/Spring 2026)

ANALYSIS:

The Herculean Mile program gives city leaders, staff, community members, and business owners an opportunity to nominate those who have proven to be integral to Hercules' success.

In addition to all of the hardworking, dedicated employees, the City of Hercules has benefited from the many partnerships with the 14 City Recognized Nonprofit Groups, the group of dedicated volunteers at PD and the Senior Center, those giving their time in the Adopt a Park program, and those who volunteer in the Team up to Clean up program. Countless other members of the community have made substantial contributions to the City of Hercules, and this award is a great way to recognize some of them.

FISCAL IMPACT:

There is minimal fiscal impact associated with this award.

ATTACHMENTS:

1. All of the Herculean Mile Award Winners this year

12 HERCULEAN MILE
AWARD
Community Members
or Business Owners:

Employee Award

ARLEEN WONG
SUMMER 2025

JAMELA SMITH-FOLDS
FALL 2025

JOANNE SANCHEZ
WINTER/SPRING 2026

KARIN NESTOR

PARKS & RECREATION
(SUMMER 2025)

ROSALIND FERNANDO

CONTRERAS

PARKS & RECREATION
(FALL 2025)

FAYE FLORES

INFORMATION TECHNOLOGY
(WINTER/SPRING 2026)
13 CONSENT CALENDAR

AGENDA ITEMS

1. 25-323

2. 25-318

3. 25-321

4. 25-322
14 111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dion Bailey
Vice Mayor Chris Kelley
Council Member Alex Walker-Griffin
Council Member Dilli Bhattarai
Council Member Tiffany Grimsley
Dante Hall, City Manager
Christie Crowl, City Attorney
Eibleis Melendez, City Clerk
6:00 PMWednesday, November 12, 2025
CLOSED SESSION - 6:00 PM ; REGULAR MEETING - 7:00 P.M
In-Person in Council Chambers or Via Zoom:

Zoom ID: 812 6323 1485 Zoom Passcode: 763120
Zoom Phone Number: 1-669-900-6833
I. SPECIAL CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 PM 1A. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
Vice Mayor Kelley opened the meeting. Mayor Bailey was not in attendance for Closed Session but did attend the regular meeting.

Council Member Dilli Bhattarai, Vice Mayor C. Kelley, and Council Member A.

Walker-Griffin

Present: 3 -
Mayor D. Bailey, and Council Member T. GrimsleyAbsent: 2 - II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
NONE
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

City Attorney, Christie Crowl, read the title of the item to be discussed in Closed Session. City Council and Staff recessed into Closed Session.

1. 25-298
Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Hercules Police Officers Association

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15 November 12, 2025City Council Meeting Minutes
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, and Council Member A. Walker-Griffin

Present: 4 -
Council Member T. GrimsleyAbsent: 1 -
V. REPORT ON ACTION TAKEN IN CLOSED SESSION
The City Attorney stated that there was no final or reportable action taken in Closed Session.

VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Walker-Griffin.

VII. MOMENT OF SILENCE
NONE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 25-303 Proclamation - Veterans Day and the Conclusion of the 50th Anniversary Commemoration of the Vietnam War
Veterans Day ProclamationAttachments:

Mayor Bailey presented the proclamation. Council provided remarks.

Hercules Police Volunteer and Veteran, Paul Cardaropoli, accepted the proclamation and said a few words after Senator Arreguin's presentation.

Pictures were taken.

2. 25-296
Presentation from Senator Jesse Arreguín
Presentation - State Legislative Update - City of Hercules.pdfAttachments:

Senator Arreguin presented the State Legislative Update. Council provided comments and asked questions. Senator Arreguin responded.

Pictures were taken. This was an informational item.

IX. AGENDA ADDITIONS/DELETIONS
NONE

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16 November 12, 2025City Council Meeting Minutes
X. PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

XI. PUBLIC HEARINGS
NONE
XII. CONSENT CALENDAR
MOTION: A motion was made by Council Member Bhattarai, seconded by Vice Mayor Kelley, to adopt the Consent Calendar. The motion carried by the following vote:

Aye: Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, and Council Member A. Walker-Griffin
4 -

Absent: Council Member T. Grimsley1 -

1. 25-297
Meeting Minutes for the Regular Meeting of October 28, 2025 Meeting Minutes for the Regular Meeting of October 28, 2025Attachments:

APPROVED

2. 25-302 Agreement with Townsend Public Affairs, Inc. for State Legislative Advocacy Services
RECOMMENDATION:

Staff recommends that the City Council approve a resolution authorizing the City Manager to execute a professional services agreement with Townsend Public Affairs, Inc. (“TPA”) to provide lobbying and advocacy services. Additionally, it is recommended that the Fiscal Year (FY) 2025-26 Budget be amended to allocate funds from the General Fund Reserve in an amount not to exceed $47,000.

Staff report - Lobbying and Advocacy Services Agreement with Townsend Public Affairs, Inc
Attach 1 - Resolution
Attach 2 - TPA Proposal
Attachments:

RESOLUTION 25-071, APPROVED

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17 November 12, 2025City Council Meeting Minutes

3. 25-292 Updated Records Retention Schedule and Records and Information Management (RIM) Program Policy
RECOMMENDATION:

Adopt a resolution adopting the updated Records Retention Schedule and Records and Information Management Program Policy and rescinding Resolution 18-028.

Staff Report- Update of Records Retention Schedule and Policy Attach 1 - Resolution
Exhibit A - Final Draft of Updated Records Retention Schedule 2025 Exhibit B - Draft Hercules Citywide RIM Program Policy - 2025 Attach 2 - Resolution 18-028
Attach 3 - 2018 Records Retention Schedule
Attachments:

RESOLUTION 25-072, APPROVED

4. 25-300 Acceptance of a Grant Award From the State of California Office of Traffic Safety Selective Traffic Enforcement Program(STEP)
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution to accept the State Office of Traffic Safety grant award of $75,000 on behalf of the CIty of Hercules
Staff Report - Office of Traffic Safety Grant Award
Attach 1 - Resolution
Attach 2 - Signed Grant Agreement
Attachments:

RESOLUTION 25-073, APPROVED

5. 25-294 Accept the Investment Report for the Quarter Ending September 30, 2025 RECOMMENDATION:

Accept the Investment Report for the Quarter Ending September 30, 2025.

Staff Report
Attach 1 - Quarterly Investment Report
Attachments:

APPROVED
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-268 FY 25-26 Co-sponsored Special Events Update
RECOMMENDATION:

Staff recommends that the City Council receive an update on special events co-sponsored by the city and the Bay Front Chamber of Commerce during the current FY 25-26.

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18 November 12, 2025City Council Meeting Minutes
Staff Report - Special Events Update. rev1
Attach 1 - 2022-23 - Cultural Festival - recap
Attach 2 - 2023-24 - Cultural Festival - recap
Attach 3 - 2024-25 - Cultural Festival - recap
Attachments:

Parks and Recreation Director, Christopher Roke, presented the Staff Report. No public comment. Council asked questions and provided comments. City Manager, Dante Hall and Director Roke provided a response. No action was taken on this item.

2. 25-295
Fourth of July Celebration for 2026
RECOMMENDATION:

Staff recommends that the City Council receive an update on the planning for the Fourth of July 2026 Celebration and provide direction to staff on whether to proceed with fireworks on a barge, a drone show, or pursue a co-sponsored parade and 5K Fun Run with community partners.

Staff ReportAttachments:

Parks and Recreation Director, Christopher Roke, presented the Staff Report. Council asked questions and provided comments. No public comment. City Manager Hall and Director Roke provided a response.

Council provided direction to Staff. Action was taken on this item.

MOTION: A motion was made by Council Member Walker-Griffin, seconded by Vice Mayor Kelley, for staff to move forward with a parade and 5k run in lieu of a fourth of July event. The motion carried by the following vote:

Aye: Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, and Council Member A. Walker-Griffin
4 -

Absent: Council Member T. Grimsley1 -

3. 25-293
FY 25-26 1st Quarter Budget Report
RECOMMENDATION:

Review and accept the First Quarter Budget Report for the fiscal period concluding on September 30, 2025.

Staff Report
Attach 1 - General Fund Year-To-Date Revenue Report
Attach 2 - General Fund Year-To-Date Expenditure Report Attach 3 - All Funds Year-To-Date Revenues and Expenditures Report Attach 4 - Active Capital Projects Report
Attachments:

Finance Director, Edwin Gato, presented the Staff Report. Council asked questions and provided comments. Director Gato provided a response.

No public comment. This was an informational item. No action was taken.

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19 November 12, 2025City Council Meeting Minutes
XIV. PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

2. City Council Committees and Subcommittees
a. Econ. Dev. Subcommittee
b. Traffic and Public Safety Committee
c. East Bay Economic Development Alliance
d. Education Subcommittee

3. Commission Liaisons
a. Community & Library Services Commission
b. Finance Commission
c. Planning Commisison
No announcements from City Manager and City Attorney

1. Regional Committees
Mayor Bailey reported out on the Contra Costa Mayors Conference

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20 November 12, 2025City Council Meeting Minutes

2. City Council Committees and Subcommittees
Vice Mayor Kelley reported out on the California Council of Governments Board meeting

3. Commission Liaisons
No reports were provided
Council Members also reported out on events they attended throughout the City and County.

There were no future agenda items requests.

XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 8:40pm.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

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21 CONSENT CALENDAR

AGENDA ITEMS

2. 25-318
22 111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dion Bailey
Vice Mayor Chris Kelley
Council Member Alex Walker-Griffin
Council Member Dilli Bhattarai
Council Member Tiffany Grimsley
Dante Hall, City Manager
Christie Crowl, City Attorney
Eibleis Melendez, City Clerk
5:30 PMTuesday, November 18, 2025
SPECIAL MEETING - 5:30 P.M.

In-Person in Council Chambers
I. SPECIAL CLOSED SESSION – NONE
NONE
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS - NONE NONE
III. CONVENE INTO CLOSED SESSION - NONE
NONE
IV. SPECIAL MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 5:30 P.M.

Assistant City Attorney, Patrick Tang, attend the meeting for City Attorney Christie Crowl.

Mayor D. Bailey, Vice Mayor C. Kelley, and Council Member A. Walker-GriffinPresent: 3 - Council Member Dilli Bhattarai, and Council Member T. GrimsleyAbsent: 2 - V. REPORT ON ACTION TAKEN IN CLOSED SESSION - NO CLOSED SESSION NONE
VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was lead by Mayor Bailey
VII. MOMENT OF SILENCE
NONE

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23 November 18, 2025City Council Meeting Minutes
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 25-311 Commission Interviews
RECOMMENDATION:

Conduct interviews for all eligible candidates which have applied for Hercules Boards and Commissions. City Council will make their selections and appointments at the Regular City Council Meeting on December 9, 2025.

1. Interview Process -
a. Interviews are informal and shall be open to the public. b. A copy of the questions will be at the podium for their reference.
c. Candidates will be called into the Council Chambers at their scheduled interview time and must exit at its conclusion.

2. Incumbents that applied for re-appointment were not required to participate in the interview process.

Staff Report - Commission Applicant InterviewsAttachments:

City Clerk, Eibleis Melendez, provided a brief introduction. The Council conducted Commission interviews for the Commission and Committee applicants that were scheduled to interview. No public comment. There was no action taken on this item. Commissioners will be appointed at the 12/9 Regular City Council Meeting.

IX. AGENDA ADDITIONS/DELETIONS
NONE

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24 November 18, 2025City Council Meeting Minutes
X. PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

XI. PUBLIC HEARINGS - NONE
NONE
XII. CONSENT CALENDAR - NONE
NONE
XIII. DISCUSSION AND/OR ACTION ITEMS - NONE
NONE
XIV. PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

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25 November 18, 2025City Council Meeting Minutes
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

2. City Council Committees and Subcommittees
a. Econ. Dev. Subcommittee
b. Traffic and Public Safety Committee
c. East Bay Economic Development Alliance
d. Education Subcommittee

3. Commission Liaisons
a. Community & Library Services Commission
b. Finance Commission
c. Planning Commisison
There were no announcements from the City Manager or City Attorney.

City Council did not report out on any Regional, City Council Committees/Subcommittees or Commission meetings.

There were no future agenda item requests made by Council.

Page 4 ends

26 November 18, 2025City Council Meeting Minutes
XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 7:28pm.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

Page 5 ends

27 CONSENT CALENDAR

AGENDA ITEMS

3. 25-321
28 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of December 9, 2025

TO: Members of the City Council

SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
Kristi Carter, Human Resources Manager

SUBJECT: Approve a Memorandum of Understanding between the City of Hercules and the Hercules Police Officers’ Association

RECOMMENDED ACTION:

Adopt a Resolution Approving:

1. A 2025-2027 Memorandum of Understanding between the City of Hercules (“City”) and the Hercules Police Officers’ Association (“HPOA”); and

2. A Fiscal Year 2025 -2026 Master Salary Schedule pursuant to California Public Employees Retirement System (“CalPERS”) effective July 6, 2025 (last updated on November 17, 2025).

DISCUSSION:

The existing Memorandum of Understanding (“ MOU”) between the City and the HPOA expired on June 30, 2025. The City engaged in the meet and confer process with the HPOA with direction and authority provided by the City Council during Closed Session. A tentative agreement was reached with the HOPA for a new two-year term MOU effective July 1, 2025, through June 30, 2027. On November 13, 2025, the HPOA voted to move forward with the TA, confirming its support for proceeding with the successor Memorandum of Understanding.

//
29 A summary of the changes in the 2025-2027 MOU is set forth below:

MOU Article Summary of Terms
N/A

July 1, 2025 - June 30, 2027 (Two-Year
term).

Article X – Compensation, A. Salaries A three percent (3.0%) Cost of Living Adjustment (“COLA”) to all bargaining unit
classifications effective July 6, 2025.

A two percent (2.0%) market equity
adjustment to all bargaining unit
classifications, effective July 6, 2025.

A one-time three percent (3.0%) non-
pensionable non-recurring retention
payment of the employee's gross annual
salary earned in FY 2024-2025.

A three percent (3.0%) COLA to all
bargaining unit classifications effective July
5, 2026.

A two percent (2.0%) market equity
adjustment to all bargaining unit
classifications, effective July 5, 2026.

Article X – Compensation, G. Bilingual Pay Adjust bilingual certification incentive pay.

Effective December 21, 2025, an
employee certified as bilingual shall
receive a premium of two percent (2.0%)
of base wage per month if they are
certified as bilingual.

Article X – Compensation, F. Education
Incentive Pay
Adjust education incentive pay.

Effective December 21, 2025, two
additional benefit tiers will be added to
education incentive pay, as follows:

Supervisory POST 5.5% of base wage
Master’s Degree 6.0% of base wage

Article VI – Hours of Work, D. On Call Pay Adjust on-call incentive pay.

30 Effective December 21, 2025, employees
shall be compensated at the following rate
for being on-call:

$55.00 per weekday
$60.00 per weekend day
$65.00 per holiday

Article X – Compensation, E. Education
Reimbursement
Adjust education reimbursement.

Effective July 1, 2025, an employee who is
enrolled in a technical/vocational, an
associate of arts, bachelor’s, or master’s
degree program which the City determines
is in a job-related field may receive
reimbursement for tuition and books in an
amount not to exceed four thousand
dollars ($4,000) per fiscal year.

Article X – Compensation, L. Uniforms, b.

Uniform Allowance
Adjust uniform allowance.

Effective December 21, 2025, the City will
compensate each employee an additional
$100.00 per month ($1,200 annually) as
payment for uniform maintenance and
replacement. Such compensation shall be
made semi-annually during the second pay
period in January and the second pay
period in July.

FISCAL IMPACT:

The approval of the MOU for the 2025-2027 fiscal period will incur both ongoing and one- time expenses.

Furthermore, staff recommends that the City Council authorize an appropriation for a one- time retention payment of 3% (of gross salary in FY 2024 -25) in FY 2025-26 for HPOA employees. There are adequate resources available in the General Fund reserve to facilitate these allocations. Below is a comprehensive overview of the ongoing and one-time costs associated with the employees impacted by these approvals.

FY 2025-26

Annualized On-Going Costs One-Time Costs
$74,000 $87,000

31 FY 2026-27

Annualized On-Going Costs One-Time Costs
$152,000 $0

ATTACHMENTS:

1. Resolution

Exhibit 1: 2025-2027 Memorandum of Understanding between the City of Hercules and the Hercules Police Officers’ Association

Exhibit 2: Fiscal Year 2025-2026 Master Salary Schedule effective July 6, 2025 (Last Revised November 17, 2025)

32 HERCULES CITY COUNCIL
RESOLUTION 2025-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING A 2025-2027 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HERCULES AND THE HERCULES POLICE OFFICERS’ ASSOCIATION AND APPROVING THE REVISED FISCAL YEAR (FY) 2025-2026 MASTER SALARY

SCHEDULE

WHEREAS, the Memorandum of Understanding (“MOU”) between the City of Hercules (“City”) and the Hercules Police Officers’ Association (“HPOA”) expired on June 30, 2025; and

WHEREAS, the City and the HPOA engaged in the meet and confer process in accordance with state law and under direction provided by the City Council in Closed Session; and

WHEREAS, the City and the HPOA reached a Tentative Agreement (“TA”) for a new MOU covering the period of July 1, 2025, through June 30, 2027; and

WHEREAS, on November 13, 2025, the HPOA voted to move forward with the TA, confirming its support for proceeding with the successor Memorandum of Understanding; and

WHEREAS, the TA includes cost of living (“COLA”) and market equity adjustments (“MEA”) to salaries, a one-time non-pensionable retention payment, and adjustments to education incentives, bilingual pay, uniform allowance, and other compensation provisions, as detailed in the staff report provided to the City Council; and

WHEREAS, the projected annual costs for administering the 2025 -2027 Memorandum of Understanding (MOU) between the City and the HPOA are approximately $74,000 for FY 2025-26 and $152,000 for FY 2026-27. It is recommended that the City Council approve an appropriation to amend the adopted budget for FY 2025- 26, allocating $74,000 from the General Fund Reserve. Furthermore, it is essential to ensure that the budget for FY 2026-27 reflects the allocation of $152,000; and

WHEREAS, the staff recommends that the City Council approve the necessary budget appropriations for a one -time non -pensionable retention payment totaling approximately $87,000, to be drawn from the Gen eral Fund reserve. Furthermore, it is recommended that the adopted budget for Fiscal Year 2025-26 be amended accordingly.; and

WHEREAS, approval of the revised Fiscal Year 2025 –2026 Master Salary Schedule effective July 6, 2025, and last updated November 17, 2025, is required to comply with California Public Employees Retirement System (“CalPERS”) regulations. 33 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hercules as follows:

1. The Council hereby approves and authorizes the City Manager to sign and implement the Memorandum of Understanding between the City of Hercules and the Hercules Police Officers’ Association for the term July 1, 202 5, through June 30, 2027, as set forth in Exhibit 1.

2. The Council hereby approves budget appropriations for ongoing annual expenses, estimated at approximately $74,000, and a one -time allocation for non - pensionable retention pay costs, totaling $87,000. These modifications are intended to revise the FY 2025-26 adopted budget.

3. The Council hereby adopts the revised FY 2025-2026 Master Salary Schedule effective July 6, 2025, and last updated November 17, 2025, in accordance with CalPERS regulations, attached hereto as Exhibit 2.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 9th day of December 2025, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

___________________________
Dion Bailey, Mayor
ATTEST:

Eibleis Melendez, City Clerk

34 MEMORANDUM OF UNDERSTANDING

FOR

POLICE OFFICERS’ ASSOCIATION

OF THE CITY OF HERCULES

Effective July 1, 2025 through June 30, 2027

Per Resolution No. 25-xxx

35 ii

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF HERCULES
AND
THE HERCULES POLICE OFFICERS’ ASSOCIATION

Table of Contents to be generated after final formatting completed.

36 3

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF HERCULES
AND
THE HERCULES POLICE OFFICERS’ ASSOCIATION

This Memorandum of Understanding is entered into pursuant to the Meyers -Milias-Brown Act (Government Code section 3500 et seq). Parties to this Memorandum of Understanding (“MOU” herein) are the City of Hercules (“City” herein) and the Hercules Police Offi cers’ Association (“Association” herein). The parties have met and conferred in good faith regarding wages, hours, and other terms and conditions of employment of the employees represented by the Association and have exchanged freely information, opinions and proposals and have endeavored to reach an agreement on matters relating to the employment, conditions, and employee relations of such employees.

This Memorandum of Understanding shall be presented to the City Council as a joint recommendation of the undersigned for salary, fringe benefits, and other working conditions for the period of July 1, 2025 - June 30, 2027, and shall be in full force and effect at such date as herein prescribed, on ratification by both the City Council and affected members of the Police Association.

ARTICLE I - RECOGNITION

The City recognizes the Association as the exclusive representative of the full -time sworn employees of the Hercules Police Department in the classifications of Sergeant and Police Officer. Said recognition herein shall remain in full force and effect unless decertified according to procedures adopted in conformity with State law. The provisions of this article shall not preclude any individual representing him/herself in matters of employer/employee relations.

ARTICLE II - NONDISCRIMINATION

No bargaining unit members represented by the Association shall be reduced or removed, or in any way favored or discriminated against because of race, sex, national origin, or religion.

Neither the City nor the Association shall interfere with, intimidate, restrain, coerce, or discriminate against bargaining unit members because of the exercise of their rights to engage or not to engage in employee organization activities pursuant to Government Code Section 3500 et seq.

ARTICLE III - MANAGEMENT RIGHTS AND RESPONSIBILITY

1. Management Rights

The City retains all its exclusive rights and authority under State law and expressly and exclusively retains its management rights, which include, but are not limited to:

37 4
- The exclusive right to determine the mission and organization of its constituent departments and commissions;

- Set standards and levels of service;

- Determine the procedures and standards of selection for employment and promotions;

- Establish and effect administrative regulations consistent with laws and the provisions of this Memorandum of Understanding to direct its employees;

- Maintain the efficiency of governmental operations;

- Determine the methods, means, and numbers and kinds of personnel by which governmental operations are to be conducted;

- Determine methods of financing;

- Determine and/or change the facilities, methods, technology, means, organizational structures, and size and composition of the work force and allocate and assign work by which the City operations are to be conducted;

- Determine and change the numbers of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions;

- Discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees in accordance with applicable law;

- Take all necessary actions to carry out its mission in emergencies;

- Exercise complete control and discretion over its organization and the technology of performing its work; and

- Take actions as are in the interest of effective service to the community.

The City maintains the right to use qualified volunteers or reserves in the Police Department. Use of said individuals shall be in accordance with State law and Police Department regulations.

ARTICLE IV - SUPPORT OF AGREEMENT

During the term of this agreement, the City agrees not to negotiate with any organization other than the Police Officers ’ Association or its designated representatives on matters on which the Association is the exclusive representative and which is within its scope of representation. The Association agrees to negotiate only with the representatives officially designated by the City to act on its behalf.

38 5
The Association is given a bank of 120 hours for Association business during the term of this MOU.

ARTICLE V - LEAVES

A. Sick Leave

1. The City provides paid sick leave benefits for all full-time sworn employees. Sick leave accrues at the rate of eight (8) hours per month for each month in which an employee has worked a minimum of 96 hours. The maximum accrual of sick leave is 2,080 hours. The City does not pay employees for unused sick leave upon termination for any reason.

Sick leave may be taken by an employee only under the following circumstances:

- When sickness prevents performance of services, functions, or duties;

- In the event of a serious illness to a member of the employee’s immediate family (defined as the employee’s spouse, parent, step- parent, brother, sister, child, step child, domestic partner, mother -in-law, father -in-law, sister-in-law, brother-in-law, grandparent, grandchild or legal guardian); or for a scheduled medical or dental appointment for the employee or the employee’s dependent children, in the event that the appointment requires the employee to be absent from work.

In requesting sick leave, members must notify, or make reasonable effort to notify, the watch commander four (4) hours prior to the member’s work shift. The City may require an employee to submit a doctor’s excuse for sick leave under the following circumstances:

- More than two (2) consecutive sick leave days taken by the employee.

- With prior notification of the employee.

In cases where an employee’s request for sick leave would normally be approved, but there is no sick leave accrual available, then the absence shall be charged against the available vacation or compensatory time balance. If there is no such vacation or compensatory time available, then the time off shall be recorded as an authorized unpaid Leave of Absence. An employee claiming for long- term disability benefits shall not be required to first exhaust paid leave.

If an employee’s death is duty- related, his beneficiary shall be entitled to reimbursement for all that officer’s accumulated unused sick leave.

39 6
B. Authorized Leaves of Absence Without Pay

1. Requesting Leave

Upon the recommendation of the Chief of Police, the City Manager may, in his or her discretion, grant an employee an unpaid Leave of Absence not to exceed three (3) months. Employees desiring to take time off without pay who have no leave balances available shall submit a request in writing to the Chief of Police. Whenever possible, such request shall be submitted at least five (5) weeks in advance.

2. Extension of Leaves

During the period of the Leave of Absence, an employee may request that the leave be extended by submitting such a request in writing to the City Manager stating the reason for the extension. Such a request may be approved or disapproved by the City Manage r as described in the above section. No Leaves of Absence exceeding one (1) year may be granted under any circumstances.

3. Early Return From Leaves of Absence

An employee may request permission from the City Manager to return to work prior to the approved expiration of the leave. Approval of the City Manager for such early returns is discretionary.

4. Failure to Return to Work From Leave of Absence

Failure of an employee to return to work on the approved date is grounds for disciplinary action up to and including dismissal.

5. Benefits During Leaves of Absence

Employees on leave of absence may continue their medical and insurance benefit coverage by reimbursing the City directly for the amount of the insurance premiums in advance. Such reimbursement must be made in advance by the 30th day of the preceding month for the subsequent month for each month in which the employee wishes to receive coverage. Should the employee fail to submit payment on a timely basis, the Personnel Department will send the employee a reminder notice. Coverage in any plan will be dropped if the employee is more than 30 days late in making a premium payment.

6. Status of Employee on Authorized Leave of Absence

a. An authorized Leave of Absence does not represent a break in employment for a full time sworn employee. Such an employee retains all accrued vacation, sick leave, and other rights as exist at the time the Leave of Absence begins. However, only active full-time service shall count towards accumulated seniority or toward benefits, which accrue according to length of service (including vacation and sick leave). Vacation, sick leave, holiday, and merit salary increases do not accrue to 40 7
an employee on leave during the period of such leave.

b. An employee returning from Leave of Absence shall return to the same salary step or relative placement in the pay range existing at the time the employee returns to work.

C. Unauthorized Leaves of Absence

Any unauthorized Leave of Absence may be cause for disciplinary action.

D. Jury Duty

The City provides jury duty leave with pay for all sworn employees who are called upon to serve for court jury duty according to the following provisions:

1. An employee called for jury duty should immediately notify the Chief of Police by providing the jury summons indicating the date, time, and place.

2. An employee may either remain in regular pay status and turn over to the City all jury duty wages (less mileage allowance if provided by the Court), or may take vacation leave, compensatory time off, or authorized Leave of Absence without pay and retain all jury duty wages.

E. Military Leave

Military Leave of Absence shall be granted within the provisions of State law.

F. Pregnancy Disability Leave

1. Employees are entitled to use sick leave, accrued vacation and/or compensatory time off for disabilities caused or contributed to by pregnancy, miscarriage, childbirth, and recovery therefrom on the same terms and conditions governing Leaves of Absence for other temporary illness or medical disability.

2. Such leave shall not be used for childcare, child rearing, or preparation for childbearing, but shall be limited to those disabilities as set forth above.

3. The length of such disability leave, including the date on which the leave shall commence and the date on which the duties are to be resumed, shall be determined by the employee and the employee’s physician; however, the Personnel Department may require a verification of the extent of disability through a physical examination of the employee by a physician appointed by the City at City expense.

4. Employees are entitled to leave without pay or other benefits for disabilities because of pregnancy, miscarriage, childbirth, or recovery therefrom when sick leave has been exhausted on the same terms and conditions applicable to other temporary illness or medical disability.
41 8

5. The employee on pregnancy disability leave shall be returned to an equivalent position within her classification.

G. Family Medical Leave Act of 1993

1. The City shall provide eligible employees with family care leave in accordance with the Federal Family Medical and Leave Act (FMLA) and the California Family Rights Act (CFRA). Under FMLA and the CFRA, eligible employees may take up to twelve (12) weeks of unpaid leave; however, employees must first use accrued vacation and compensatory time leave.

H. Catastrophic Illness and Donations of Leave by Employees

1. HPOA members may participate in the City of Hercules Catastrophic Illness Plan as donors and receivers of hours.

I. Bereavement Leave

Paid bereavement leave of up to 40 hours shall be provided to employees in the event of a death in the immediate family of the employee. In addition to the 40 hours of paid bereavement leave, employees may use accrued unused vacation or sick leave to extend their bereavement leave up to a total of 56 hours. At the discretion of the City Manager, additional time may be taken as vacation, sick leave or unpaid leave.

Immediate family of an employee is defined as: parents, step -parents, parent -in-laws, spouse, domestic partner, child, step child, brother, sister, grandparents, grandchildren, brother/sister in-law, son/daughter-in-law or legal guardian.

In special cases, the City Manager may approve a leave of absence for bereavement in other circumstances.

ARTICLE VI - HOURS OF WORK

A. Work Assignment

Full-time employees shall be assigned to a shift designated by the Chief of Police after a meet and confer with the HPOA on the number of days and hours equaling eighty (80) hours per two week period at such times as designated by the Chief of Police.

1. Hours of Work

a. Effective January 1, 1996, the City designated a 7(k) exemption under FLSA of one hundred and seventy-one (171) hours per 28-day period as the standard work period.

42 9

2. Break Periods

Employees shall receive one (1) fifteen -minute break during the mid- portion of each four-hour block of time. In addition, employees shall receive allowance of forty-five minutes for meals during each shift of duty. If an employee does not receive at least thirty minutes for meal break during a shift, he/she shall be paid compensation for forty-five minutes at a time and one-half (1-1/2) rate.

B. Overtime

1. All employees required to work in excess of their regularly assigned shift shall receive compensation at the rate of time and one -half (1-1/2) of the employee’s regular base rate of pay for each additional quarter hour of work performed.

2. An employee required to work in excess of 171 hours per 28 -day period shall receive time and one- half (1 -1/2) of the employee’s regular base rate plus, if assigned shift differential, Officer -In-Charge (OIC) pay, Field Training Officer pay, and education incentive pay.

3. Overtime shall be earned and recorded in quarters (1/4th) of an hour increments rounded to the nearest quarter (1/4th) of an hour.

C. Compensatory Time Off

In lieu of receiving cash payment at the regular rate of pay (Section B) for overtime hours worked, an employee may elect the option of taking compensatory time off (CTO).

Compensatory time off shall be earned at the rate of time and one -half for each hour worked. Compensatory time off must be requested by the employee when submitting an overtime slip. No more than two hundred forty (240) hours of compensatory time off may be accumulated. Compensatory time off must be scheduled with the advance approval of the Chief of Police or his/her designee. Use of accumulated compensatory time off shall follow the current guidelines provided by the United States Department of Labor.

D. On Call Pay

Detectives and other employees who are required to remain on call or on court telephone standby by the Chief of Police or his/her designee shall be restricted from traveling to any location which would preclude his/her return to duty within one -half hour and shall be required to maintain the ability to be contacted by phone at all times.

Effective December 21, 2025, employees shall be compensated at the following rate:

$55.00 per weekday
$60.00 per weekend day
$65.00 per holiday

Detectives shall have full use of a take-home City vehicle while on call. 43 10

E. Call Back Pay

When an officer is called back to duty by a supervisor, that officer shall be compensated at one and one-half (1-1/2) times his/her regular hourly rate. Any compensation for being called back to duty shall cease after the officer is relieved from duty by his/her supervisor.

Any employee represented by the Association who is called back in accordance with this article shall be compensated for a minimum of four (4) hours. The City and the Association agree that the intent of this Article is to compensate employees who are called back to duty on an emergency or urgent basis, or for department meetings, training, or City business, and that this Article shall not apply if “call back” work hours are contiguous either prior to or at the end of the employee’s normally assigned shift. If an employee receives, less than eight (8) hours notice to return to duty for hours that are contiguous and prior to the normally assigned shift, the minimum shall apply.

F. Court Pay

An employee shall be entitled to receive compensation for a court appearance as a witness subpoenaed by the City, the State of California, or the United States, as follows:

1. Court appearances made while on-duty shall constitute normal hours of work.

2. In the event a court appearance extends beyond the end of the officer’s regularly assigned shift, such time spent in court will be treated as normal work time for the purpose of computing the officer’s overtime compensation.

3. Employees required to appear in court during their off -duty time shall be paid as follows:

a. Morning Session Only: Employees shall receive a minimum of four (4) hours compensation at the appropriate rate. Time in excess of the minimum compensation shall be on an actual time basis at time and one-half (1-1/2).

b. Afternoon Session Only: Employees shall receive a minimum of four (4) hours compensation. Time in excess of the minimum compensation shall be on an actual time basis at time and one-half (1-1/2).

c. Morning and Afternoon Sessions: When an employee is required to be present at both a morning and an afternoon court or attorney conference, the employee shall receive overtime compensation for the actual time spent in court from the time of arrival until dismissed by the court includin g lunch recesses.

d. Afternoon and Evening Sessions: When an employee is required to be present at both an afternoon and an evening court or attorney conference, the employee shall receive a minimum of four (4) hours compensation for the afternoon session. When the employee is released from court one (1) 44 11
or more hours prior to the start of the evening session, or the evening session is scheduled for a court in a different city than that of the afternoon session, the employee shall receive a minimum of four (4) hours compensation for the evening session.

e. In the event the time spent in court extends into the beginning of the employee’s regularly scheduled work shift, time spent in court shall be deemed ended at the time such shift is scheduled to begin for the purpose of computing the employee’s overtime compensation.

f. Compensation for court pay is subject to the employee submitting the appropriate form reflecting the beginning and ending time of the court appearance.

If a morning court appearance is canceled with six (6) hours or less notice provided to the employee or an afternoon appearance is canceled with two (2) hours or less notice provided to the employee, the employee shall be compensated for one (1) hour pay at the overtime rate.

G. Department Training

1. For the purpose of department scheduled training, work assignments shall not be modified with less than seven (7) calendar days notice or upon mutual agreement by the employee and the Chief of Police or designee.

2. Training Hours: Any training of six (6) hours or more shall be considered a full shift; less than six (6) hours, the employee shall be required to return to duty on that shift.

3. Any travel time that is outside the work assignment and in excess of the employee’s normal commute is subject to compensation by The City. The City will compensate employees for travel time to training through an established Travel Time Guide.

ARTICLE VII - VACATION PLAN

A. Accrual Rate and Accumulation

The City provides paid vacation benefits for all full -time employees. Vacation shall be paid at the regular rate of pay earned at the time of vacation is commenced. The amount of annual paid vacation accrual is based on the number of years of full-time service based on total time in public service for each member. Existing designated employees may qualify as being eligible for this provision on a forward going basis. The vacation accrual is as follows:

- Start to 4 years of service – 96 hours annually
- 5 to 9 years of service – 120 hours annually
- 10 to 15 years of service – 144 hours annually
- 16 to 19 years of service – 160 hours annually
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- 20 years plus of service – 176 hours annually

The maximum vacation balance which may be accumulated is 280 hours. When an employee reaches this maximum balance, no additional earned vacation is added to his/her account. The maximum amount of vacation accrual which may be added to the vacation balance in any one (1) year is the amount earned during the year less forty (40) hours.

No vacation leave may be earned by an employee while he/she is on Leave of Absence. In addition, an employee may not take vacation during his/her first six (6) full months of employment.

When an employee is terminated for any reason, he/she shall be entitled to all vacation pay earned and accumulated up to and including the effective date of the termination.

B. Vacation Sell Back

Consistent with City policy, employees may sell back up to 40 hours of their accrued unused vacation annually, once during each fiscal year. Employees will only be allowed to cash- out a maximum of 40 hours of vacation, provided that after doing so it leave s them with at least 40 hours of vacation and/or compensatory time on the books and 40 hours of sick leave at the time of cash- out.

ARTICLE VIII - HOLIDAYS

A. Holidays

The City provides paid time off for all full-time permanent employees for thirteen (13) holidays per year. Payment for holidays shall be as follows:

- Employees not receiving extra days off for City holidays shall be compensated for holidays in the pay period in which the holiday falls.
- Employees who are not assigned to a uniformed position shall continue to have the option of working the designated City Holiday schedule and thus receive the above holiday compensation. The decision to work the holiday schedule will be a yearly one and must be declared to the finance department prior to the start of the fiscal year. Those employees that choose not to work the City Holiday schedule and receive compensation in the form of time off shall not receive financial compensation for the days off as outlined in Article VIII on this MOU. - Employees separated from City service before June 1 or December 1 shall be entitled to receive holiday pay at the rate of one (1) holiday for each month that the employee was in paid status through the first pay period of the month, e.g., employees who separate on or after the 16th of March shall be entitled to three (3) holidays at eight (8) hours straight time; employees who separate from City service before the 16th of March shall be entitled to two (2) holidays at straight time.

- Each POA member will be allocated floating holiday hours. The number of hours will be determined by the holiday schedule issued by the City Manager for the 46 13
city offices. Each member may select these floating holidays, subject to the requirement that their supervisor must approve requests for time off that do not incur a cost to the city. Floating holidays are provided for annually on each fiscal year (July 1 – June 30) and cannot be carried forward each year.

- Proclaimed Holidays

• Independence Day
• Labor Day
• Veterans' Day
• Thanksgiving Day
• Day After Thanksgiving
• Christmas Eve Day
• Christmas Day
• New Year's Day
• Martin Luther King Day
• President's Day
• Memorial Day
• Two Floating Holidays

If any of these Holidays fall on a Sunday, the Monday following shall be observed as the holiday. If any of these Holidays fall on a Saturday, the preceding Thursday shall be observed as the Holiday.

To be eligible for Holiday pay, employees must have worked the workday before and the workday after the Holiday, or be in approved paid leave status the workday before and the work day after the Holiday.

ARTICLE IX - GENERAL PROVISIONS

A. Payroll Deductions

The City shall grant payroll deductions for membership dues to the Association.

ARTICLE X - COMPENSATION

A. Salaries

The City shall provide a three percent (3%) cost of living adjustment (“COLA”) to all bargaining unit classifications effective July 6, 2025, as reflected in Appendix A.

The City shall provide a two percent (2%) market equity adjustment to all bargaining unit classifications effective July 6, 2025, as reflected in Appendix A.

The City shall provide a three percent (3%) cost of living adjustment (“COLA”) to all bargaining unit classifications effective July 5, 2026, as reflected in Appendix A.

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The City shall provide a two percent (2%) market equity adjustment to all bargaining unit classifications effective July 5, 2026, as reflected in Appendix A.

All members of the bargaining unit shall receive a one -time, non- recurring, non-pensionable retention payment of three percent (3%) of their gross annual salary earned in FY 2024-25. The retention payment shall be paid in the second pay period following adoption of the 2025-2027 MOU. Members may elect to direct the retention payment to their Deferred Compensation Plan if desired.

All bargaining unit members are required to participate in the City’s Direct Deposit program for all regular paychecks.

B. Salary Upon Hire

Police Officer Trainees, while at the Police Academy and who have not graduated from the Police Academy, shall be compensated at a rate of ten percent (10%) less than Step 1 of the range for Police Officer.

C. Salary Step Advancement

It is the responsibility of the City to establish appropriate standards of performance for employees and to review employees’ performance in meeting established standards.

Employees will be evaluated as to whether the employee meets standards, exceeds standards, or fails to meet standards. Employees evaluated as meeting or exceeding standards overall will receive a salary step advancement to the next salary step until the employee reaches the top step of the salary range. For employees hired on or after July 1, 1990, the salary step advancement shall become effective the first pay period following the employee’s anniversary date. Excepted from this provision shall be those employees whose anniversary date falls on the first day of the pay period. An employee evaluated as failing to meet standards overall will receive no salary step advancement and such an employee’s evaluation will indicate the specific areas of improvement needed in order to meet standards overall; such an evaluation may be appealed initiall y to the Chief of Police and then, if desired, to the City Manager whose determination shall be final.

An employee evaluated as failing to meet standards overall will receive a follow -up evaluation not less than three (3) months nor more than six (6) months following the initial evaluation and will be granted a salary step advancement at that time if the em ployee’s performance is rated as meeting or exceeding standards overall.

Employees are eligible for further salary step advancement twelve (12) months following their previous salary step advancement, except as provided in B, 1, above. When an employee demonstrates an outstanding level of performance in the opinion of the Chief of Police, the employee may be evaluated and awarded salary step advancement, even though twelve (12) months have not elapsed since the employee’s previous salary step advancement.

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The evaluation will be discussed with the employee and space will be provided on the evaluation form for the employee’s comments. The employee will be given a copy of the evaluation.

The HPOA salary schedule will consist of six steps, with each additional step above #1 receiving an additional 3% of salary.

D. Incentive Pay Plan

HPOA employees will be eligible for the same incentive plan that the rest of the City employees have. The City will meet and confer with HPOA on the formulation of this policy.

E. Education Reimbursement

An employee who is enrolled in a technical/vocational, an associate of arts, bachelor’s, or master’s degree program which the City determines is in a job -related field may receive reimbursement for tuition and books in an amount not to exceed four thousand dollars ($4,000) per fiscal year. The Chief of Police, the Human Resources Department and the City Manager must approve the reimbursement prior to enrollment. Evidence of a grade of “C” or better – or, if no grade is given, successful completion of the course – shall be required as a condition of obtaining reimbursement. There will be a total of $30,000 dollar annual allocation in the Education Reimbursement Program for all City employee groups.

A POA member who is enrolled in a degree program and has received reimbursement monies the prior year will have priority and cannot be bumped from the program by a member who did not receive a reimbursement the prior fiscal year.

F. Education Incentive Pay

Extra compensation for possession of POST certificates and/or college degrees shall be provided pursuant to the following schedule:

A. Intermediate POST Certificate: 3.5% of base wage;
B. Associate of Arts Degree: 4% of base wage;
C. Advanced POST Certificate: 4.5% of base wage;
D. Bachelor of Arts Degree: 5% of base wage.

Effective December 21, 2025, the following tiers will be added to the above list of education incentive pay tiers employees may qualify for:

Supervisory POST Certification: 5.5% of base wage
Master’s Degree: 6.0% of base wage

An employee shall only be eligible for one of the foregoing education incentive payments.

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G. Bilingual Pay

Effective December 21, 2025, an employee certified as bilingual shall receive an additional premium of two percent (2%) of base wage per month if he or she is certified as bilingual as follows:

A. The employee has the demonstrated ability to translate Spanish, Chinese or Tagalog into English and vice versa, both in writing and verbally, established by passing a proficiency test administered by the City’s Human Resources representative or its designee; and,

B. The employee and department head certify that the employee’s bilingual skills are desired by the department, and the employee may be called upon when necessary to translate communications as required by the department head.

H. Field Training Officer Pay Differential

An employee who is assigned as a Field Training Officer will be paid an additional five percent (5%) of his/her salary for actual time spent as a Field Training Officer. This differential shall also apply to the Field Training Sergeant.

I. Shift Differential

The City agrees to pay a differential of three percent (3%) of base salary for officers and sergeants assigned to swing and/or relief swing and five percent (5%) of base salary for officers and sergeants assigned to the graveyard shift. The differential shall be available only to those employees actually performing duties on the covered shifts.

J. Assigned Positions

The City agrees to pay sworn employees designated to work a regular assigned position including Administrative Sergeant, Investigative Sergeant, and Training Sergeant, excluding patrol, an additional five percent (5%) of his/her base salary. This different ial does not include sworn employees temporarily assigned to the position. Sworn employees temporarily assigned shall have the work schedule adjusted to include a paid lunch.

Officers receiving Specialty Pay incentive will retain pay incentive even when wo rking shifts not related to the Specialty Pay.

K. Out-of-Class Work

a. Officer in Charge

During the absences of regular supervisors, a sworn officer shall be designated as Officer -in-Charge (OIC) to handle field supervision or station responsibilities as required. The OIC shall be compensated at a rate which is five percent (5%) above said employee’s existing salary rate for every hour worked in such temporary service. Any out-of-class work for which premium 50 17
compensation is provided requires advanced written approval of the Chief of Police, or his or her designee.

b. Acting Commander

An employee who is appointed Acting Commander shall receive an hourly rate equal to five percent (5%) above said employee’s existing salary rate for every hour worked in such temporary assignment. Any out -of-class work for which premium compensation is provided requires advanced written approval of the Chief of Police, or his or her designee.

c. Acting Chief of Police

An employee who is appointed Acting Chief of Police shall receive an hourly rate equal to ten percent (10%) above said employee’s existing salary rate for every hour worked in such temporary appointment. Any out -of-class work for which premium compensation is provided requires advanced written approval of the Chief of Police, or his or her designee.

L. Uniforms

a. New Employees

The City shall provide all new members with a uniform which includes three (3) short sleeve shirts, three (3) long sleeve shirts, three (3) pants, one (1) tie, one (1) hat, and leathers and rain gear, as determined by the Chief of Police and as approved by the City Manager. The City shall also provide safety equipment, including weapons, ammunition, and body armor vest, as determined necessary by the Chief of Police and as approved by the City Manager. Each employee is responsible for the care, maintenance, and replacement of such uniforms. The City shall reimburse employees for the cost of serviceable uniforms damaged in the course of employment. In addition, each employee is responsible for the care and maintenance of the issued safety equipment.

b. Uniform Allowance

Effective December 21, 2025, the City will compensate each employee an additional $100.00 per month as payment for such maintenance and replacement.

Such compensation shall be made semi-annually during the second pay period in January and the second pay period in July. Payment shall be made by a separate check and not as part of a regular paycheck. Employees shall become eligible to receive the first semi-annual payment following their first anniversary date. With respect to the time between the employee’s first anniversary date and the semi - annual payment, the allowance will be prorated on a monthly basis with an employee having to work more than sixteen (16) days to receive payment for that 51 18
month. The uniform allowance is considered a prospective payment and there shall be no payment or reimbursement upon separation from City service.

M. Work-Out

During the term of this MOU, the City and the Association agree to explore establishing an on-site gym to allow for possible work-out release time for officers.

N. K-9 Differential

An employee who is assigned as a K-9 officer will be paid an additional five percent (5%) of her/his salary.

O. Longevity Pay

Hercules Police Officer’s longevity pay is calculated as a percentage of their salary and the City will make the payments in 26 bi -weekly installments. Existing designated employees
may qualify as being eligible for this provision on a forward going basis. The calculations are based on total public service sworn time and will be as follows in addition to the employee’s base salary:

At 5 years of service: 2%
At 10 years of service: 4%
At 15 years of service: 6%
At 20 years of service: 8%
At 25 years of service: 10%

P. Assigned Take-Home Department Vehicles

Employees holding certain specialized assignments may be assigned take -home City vehicles. These include City owned and City rented vehicles. Employees assigned take - home vehicles are not considered on duty and eligible for compensation for time spent driving to and from work in their City vehicle. Employees may be considered on duty and eligible for compensation when engaging in a law enforcement action while driving to or from work.

Q. Assigned Position – Corporal

An employee who appointed Corporal will be paid an additional five percent (5%) of his/her base salary as described in Section K. This amount is intended to cover the additional effort and responsibilities associated with this position and will be paid to the employee during the entire period they serve in this assignment, whether or not they are working under the supervision of a police sergeant or have an assigned trainee.

This position incorporates the duties previously performed on an as needed basis by the Officer in Charge (OIC) and Field Training Officer (FTO) specialized assignments. 52 19
Employees who are not assigned Corporals may only perform OIC and FTO duties if they are on the current Corporal list and have the approval of the Patrol Division Commander.

R. Computer Loan Program

Eligible Employees: Regular full time employees that have completed their initial one - year probation period with the City. Employee must maintain a balance of up to 40 hours of vacation and/or compensatory time until the loan is paid in full. The hours employee must maintain will vary on the amount borrowed.

Maximum Loan Amount: The City will loan employees a maximum of $2,500 for the purchase of computer hardware and software. Employees may not have more than one loan outstanding at any time. If the purchase exceeds $2,500, the remainder of the purchase price is the employee’s responsibility. No interest will be charged by the City under this program.

ARTICLE XI - DEFERRED COMPENSATION PLAN

Voluntary employee contributions may be made to the Deferred Compensation Plan through an authorized payroll deduction from the employee’s salary.

ARTICLE XII - EMPLOYEE RETIREMENT PLAN

Members hired on or before 6/30/2011 shall receive the 3% at 50 PERS retirement formula through their employment with the City of Hercules to include final year compensation One Year Final Compensation pursuant to Section 20024.2 of the California Government Code . Members hired after 6/30/2011 but before 01/01/2013 shall receive the 3% at 55 PERS retirement formula through their employment with the City of Hercules to include final year compensation One Year Final Compensation pursuant to Section 20024.2 of the California Government Code. Members agree to pay the employee’s portion of nine percent (9%) pre -tax under the PERS Plan. In the event that the contribution amount is increased above the nine percent (9%) amount, the parties agree to meet and confer o n the additional payment. Effective with the pay period beginning November 4, 2018, safety members will pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

The current MOU requires that the member employee pay the full member contribution effective July 1, 2011. Section 414(h)(2) of the Internal Revenue Code allows the public agency who is a member of PERS to designate employee retirement contributions required by the MOU, as being picked up by the employer and treated as employer contributions for tax purposes.

Members hired on or after 01/01/2013 shall receive the 2.7% at 57 PERS retirement formula, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period.

The City and members agree that all the provisions of AB 340 and AB 197 will be followed.

Effective with the pay period beginning November 4, 2018, safety members will pay an additional 53 20
3% to be applied to the Employer CalPERS Contribution Rate.

An employee who retires may convert his/her unused sick leave balance to service credit as provided by Government Code Section 20965. If an employee elects to convert their entire balance of sick leave to service credit they must notify the City at least one year prior to the date of retirement.

The Association shall defend, indemnify and save harmless the City, its officers, agents and employees from any and all claims, demands, damages, costs, expenses or liability including, but not limited to, liability for back taxes, and all claims of any type by the IRS, Franchise Tax Board, Unit members or their heirs, successors or assigns arising out of this Agreement to pay or partially pay or "pick-up" an employee's contribution to PERS.

ARTICLE XIII - MEDICAL AND INSURANCE BENEFITS

A. Medical

1. The City contribution to the Cal PERS health plan on behalf of all active and retired employees shall be the minimum established by CalPERS.

2. Active employees shall commence cost sharing starting in calendar year 2020 based on a dollar amount calculated using the premium of the Kaiser Bay Area Region plan.

3. The City’s contribution towards the employee’s health premium will equal the Kaiser rate for the prior calendar year plus the first 3% of the rate increase at each level of coverage. The employee shall contribute a maximum of up to 3% of the rate increase and the City will be responsible for rate increases above 6%.

4. If the employee chooses a plan where the premium exceeds the amount allowed, such excess shall be paid by the employee.

5. If the employee chooses a plan, which has a lower premium than the amount allowed, the employee shall not receive the difference in cash.

6. Supplemental Optional Monies Allowance for Retirees:

Eligibility

The City will provide an optional monthly monetary allowance with an annual three percent adjustment on January 1st of each year to employees who retire as regulated by the Public Employee’s Retirement System. To be eligible for the optional monies, an employee must retire as follows:

1. Service Retirement: Employees who have served the City for at least ten (10) years prior to retirement and are at least fifty (50) years old when they separate service from the City.
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2. Disability Retirement : Employees who retire with a disability retirement are not required to be a certain age, but must have at least twenty (20) years of service with the City.

To be eligible for the optional money allowance, employees must also have the minimum amount of sick leave on the books, as outlined in the chart below. If an employee has below the amount of sick leave required for their years of service, then they will only be eligible for the percentage paid equivalent to the amount of sick leave they do have on the books.

Additionally, employees must retire within one hundred twenty (120) days of separation from City employment to be eligible to receive the optional money allowance.

Years of Service Amount of sick leave hours on the
books on the day employee separates
service
Percentage of Optional Money
Available
10 480 50
11 528 55
12 576 60
13 624 65
14 672 70
15 720 75
16 768 80
17 846 85
18 864 90
19 912 95
20 960 100
21 960 100
22 960 100
23 960 100
24 960 100
25 No minimum amount required 100

Employees who separate service from the City of Hercules, but do not retire as a PERS annuitant within 120 days of separation, shall not be eligible for medical retirement under this program.

Retiree Reaches Age 65

The City will pay a portion of the optional money to a retiree until the retiree reaches age 65, upon which they are required to enroll in Medicare. At that time, the optional money will drop to an amount equivalent to the Kaiser Supplemental to Medicare rate through PERS. The retiree will be eligible for the same percentage of the Supplemental Optional Monies as they were eligible for under the Basic Optional Monies plan. Employees who are not eligible for Medicare must provide the City proof that they are not eligible for Medicare, either through their own employment history or their spouse and after providing 55 22
such proof, the city will continue to pay the percentage of the Basic Optional Monies Plan.

If proof is not provided, the City will automatically begin paying the Supplemental Optional Monies Plan percentages.

This benefit, which is effective January 1, 2001, is expected to last into perpetuity. The funds being established for this program may not be used by the City or HPOA for any purpose other than what is expressly stated in this section of the MOU. If in the future the City and HPOA mutually agree to end or modify this benefit, they can do so only for active employees. Any retiree who is currently receiving this benefit will continue to receive the benefit as stated in the MOU that was in effect at the time of their retirement.

Conversely, if the City and HPOA increase this benefit, they can do so only for active employees and retiree benefits will remain the same as it was when they retired.

The City shall provide to the HPOA an annual statement of prior year balances in the medical retirement fund no later than December 31st of each year.

Payment

Payment will be made on a bi-annual basis. The optional money allowance for the months of January through June will be made the third week in July; July through December will be paid the third week in January of each year. Checks will be mailed to the addr ess on file. Supplemental Optional Money payments are subject to applicable Federal and State Income Tax regulations.

1. Medical Redirect - If an employee elects for no health coverage, and can demonstrate to the City on an annual basis that the employee has alterative health care coverage; the employee shall be entitled to use 50% of their eligible contribution to the compensation of their choice.

2. Vision/Dental - The City agrees that it will continue to pay the full premium for VSP and Delta Dental Insurance for the employee and their immediate family members if Medical Redirect option is exercised by the employee.

B. Dental and Orthodontic

The City shall pay the premium for Delta Dental Plan, including orthodontic benefits, coverage for full-time employees plus eligible dependents.

Benefit summary:
• The City will provide Dental Insurance with a maximum benefit of $1,500 of coverage per calendar year for each family member.
• The City will provide 50% Orthodontic coverage with a lifetime maximum of $2,500 for each eligible family member.

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C. Vision

The City has contracted with Vision Service Plan (VSP) in order to offer vision benefits to employees and eligible dependents. The City shall pay the premium for the VSP benefit for full-time employees plus eligible dependents.

Retirees may participate in the Vision Plan, provided the Plan will allow them to do so and the retiree pays the group rate plus the administrative fee that is allowed under COBRA laws to the City.

D. Other Insurance Benefits

The City will pay the monthly premiums for all full -time employees for life, long -term disability, and accidental death and dismemberment insurance. The insured valued benefit for each type of coverage is as follows:

1. Long-Term Disability - The City will provide Long Term Disability Premier (Plan B) through Police Officers Standards and Research (PORAC). The cost of said insurance plan shall be added to each employee’s salary. The employee will then pay the premium through payroll deduction.

2. Life - In the amount of $50,000.

3. Accidental Death and Dismemberment - In the amount of $50,000.

E. VantageCare Retiree Health Savings Program

VantageCare Retiree Health Savings Program allows employees to accumulate assets to pay for health insurance and out -of-pocket expenses in retirement.

Management agrees to open the contract to discuss the VantageCare Retiree Health Savings Program (and only this program), if the HPOA decides to participate in it.

ARTICLE XIV - LAY-OFF POLICY AND PROCEDURE

A. Discretion of City

Whenever it becomes necessary to abolish any position of employment, the employee holding such position of employment may be laid off or demoted without disciplinary action and without the right of appeal.

B. Notification

Employees to be laid off shall be given at least thirty (30)-calendar day’s prior notice.

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C. Vacancy and Demotion

Except as otherwise provided, whenever there is a reduction in the work force, the appointing authority shall first demote to a vacancy, if any, in a lower class for which the employee who is the latest to be laid off in accordance with Section F below is qualified.

All persons so demoted shall have their names placed on the re-employment list.

D. Employee Rights

An employee affected by lay-off shall have the right to displace an employee who has less seniority in a lower class in the same class series or a lower classification in which the affected employee once had permanent status. For the purpose of this section and Section “E” below, seniority includes all periods of full-time service at or above the classification level where lay-off is to occur.

E. Seniority

In order to retreat to a former or lower class, an employee must have more seniority than at least one of the incumbents in the retreat class and request displacement action in writing
to the City Manager within five (5) working days of receipt of notice of lay-off.

Employees retreating to a lower or similar class shall be placed at the salary step representing the least loss of pay. In no case shall the salary be increased above that received in the class from which the employee was laid off.

Employees retreating to a lower or similar class shall serve a probationary period in a new class unless they have previously successfully completed a probationary period in the class or a class in the class series.

Whenever two (2) or more employees have the same hire date, the order of seniority shall be determined by lottery. The names of all employees having the same sworn date will be drawn at random, one (1) name at a time until all names are drawn. The order of selection shall determine the order of seniority, with the employee whose name is drawn first having the greater seniority. Lottery selection will be made by the Chief or his or her representative in the presence of an Association representative.

F. Employment Status

Employees shall be laid off in inverse order of seniority according to their date of hire as a full time sworn employee of the City of Hercules. Employees holding the rank of Sergeant shall be laid off in inverse order according to their date of promotion.

G. Re-employment List

The names of persons laid off or demoted in accordance with these rules shall be entered upon a re -employment list. Such list shall be used by the appointing authority when a 58 25
vacancy arises in the same or lower class of position before certification is made from an eligible list.

H. Duration of Re-employment List

Names of persons laid off shall be carried on a re-employment list for one (1) year, except the persons appointed to permanent positions on the same level as that which laid off, shall, upon such appointment, be dropped from the list. Persons who refuse re - employment shall be dropped from the list. Persons re-employed in a lower class, or on a temporary basis, shall be continued on the list for the higher position for one (1) year.

ARTICLE XV - OUTSIDE EMPLOYMENT AND OUTSIDE ACTIVITIES

A. General Prohibition

No employee shall engage in employment, activities, or enterprises for compensation of any kind or character which is inconsistent, incompatible, in conflict with, or inimical to his or her duties as an employee of the City or the duties, functions, or responsibilities of his or her position or the City itself.

B. Definition

For the purpose of this section, an employment activity or enterprise is inconsistent, incompatible, in conflict with, or inimical to those various duties, functions, or responsibilities set forth above if it:

a. Involves the use for private gain or advantage of the City’s time, facilities, equipment, or supplies; or except in limited cases of police officers, the badge, uniform, prestige, or influence of the City; or

b. Involves receipt or acceptance by a City employee of any money or other consideration from anyone other than the City for performing an act which the employee would be required or expected to perform in the regular course of working as a City employee; or

c. Involves the performance of an act in an outside capacity which may be subject directly or indirectly to the control, approval, inspection, review, audit, or enforcement of an officer, employee, or elected official of the City; or

d. Involves such time demands as would render performance of duties as a City employee less efficient, in the opinion of the Chief of Police and concurrence of the City Manager; or

e. Gives the appearance of involving or potentially involving the influence, directly or indirectly, or knowledge acquired by virtue of one’s City office or employment; or Involves an employment activity or enterprise which is inconsistent with the nature of the employment or professional standards called for by the employee’s position. 59 26

C. Chief of Police’s Approval

No employee shall be gainfully employed at any employment activity or enterprise outside of the City service without the prior approval from the Chief of Police. Such approval shall be denied only if the employment violates Section B of this Article.

D. Retroactive and Prospective Application

All provisions of this section shall apply to outside employment held by an employee on the effective date of this Agreement, as well as any outside employment sought after the date of this Agreement. As to any outside employment held on the effective date of this Agreement which is not approved, the City Manager may allow a reasonable period, not to exceed one year, for the employee to cease such outside employment.

E. Grievance Authority

An employee dissatisfied with a decision of the Chief of Police under this section may request a review before the City Manager in a manner provided in Article XVII of this Agreement. The City Manager’s decision is final.

F. Penalty for Violation of this Section

An employee’s failure to abide by this section may be cause for disciplinary action and/or disciplinary action and/or dismissal.

ARTICLE XVI - DISCIPLINARY ACTION PROCEDURES

A. Applicability of This Section

1. The provisions of this article shall be administered in compliance with the requirements of State law governing police officer discipline set forth under Section 3303 of the California Government Code.

B. Grounds for Discipline

Causes for disciplinary action include, but are not limited to, the following:

1. Fraud in securing appointment;

2. In competency, inefficiency, inexcusable neglect of duties, or failure to perform duties;

3. Insubordination;

4. Dishonesty;

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5. Drunkenness on duty or chronic abuse of alcohol;

6. Addiction to or use of narcotics or habit-forming drugs;

7. Violation of City or departmental rules;

8. Misuse or appropriation of City property or funds;

9. Negligence or misconduct resulting in damage to public property or waste of public supplies;

10. Failure to follow adopted safety practices, or failure to properly use required personal protective gear or equipment;

11. Discourteous or non-cooperative treatment of the public or other City personnel;

12. Acceptance of gifts or gratuities for the performance of services, functions, or duties for which employee is retained by the City;

13. Conviction of a crime;

14. Engaging in any employment, activity, or enterprise which is inconsistent, incompatible, in conflict with, or inimical to performance of services, functions, and duties for which the employee is retained by the City;

15. Failure to maintain required licenses and certificates;

16. Failure to maintain eligibility for vehicle insurance coverage where driving is a requirement of the job classification. For purposes of this section, “driving is a requirement of the job classification” when the job description for the classification lists a driver’s license as one of the requirements for the position.

C. Delegation of Disciplinary Action

The City Manager may impose discipline or authorize any Department Head to discipline subordinate employees subject to these procedures.

D. Types of Discipline

The specific disciplinary actions which may be imposed against City employees are defined below. The City may also issue non-disciplinary letters of instruction. A letter of instruction shall be removed from the employee’s personnel file on completion of the annual evaluation subsequent to its issuance.

1. Written Reprimand

A written reprimand is a formal notice to an employee that his or her performance or 61 28
behavior must be improved and that further disciplinary action, including additional reprimands, suspension, reduction in pay, demotion, or dismissal, may be taken unless the employee’s performance or behavior is improved.

a. The content of the written reprimand should include the following:

- A description of the action or activity necessitating a written reprimand; - The date(s) and time(s) of the action or activity causing the written reprimand.

b. The written reprimand should be prepared in duplicate and presented to the employee for his or her signature.

c. The written reprimand should then be distributed as follows:

- One copy to the employee;
- Copies to the Department Head and City Manager;
- One copy to the employee’s personnel file.

d. Employees shall have sixty (60) calendar days within which to respond to any adverse comments entered in his or her personnel file. Such responses shall be attached to the adverse comments.

e. There shall be no right to appeal a written reprimand beyond Level III review by the City Manager as provided above in this agreement.

f. After one (1) year, an employee may request that the Chief of Police remove a written reprimand from the employee’s record.

2. Suspension

a. Suspension is the temporary removal, without pay, of an employee from his or her duties.

b. The Chief of Police may suspend an employee for up to three (3) working days for each violation.

c. Suspensions of more than three (3) days are imposed by the City Manager. There shall be no right to appeal suspensions of three (3) days or less beyond a Level III review by the City Manager as described in Article XVII of this Agreement.

3. Demotion

a. A demotion is the removal of an employee from his or her existing position to a lower paying position.

62 29
b. All demotions shall follow the guidelines of the Disciplinary Procedures in Section E below.

c. The rejection of an employee who is serving in a probationary promotional position and subsequent removal is a failure by the employee to satisfactorily complete the promotional testing process. Such an employee would be returned to his or her prior position. Such a rejection and removal is not disciplinary action subject to this Agreement.

4. Reduction in Pay

a. A reduction in pay within an employee’s salary range represents a permanent or temporary lowering of an employee’s salary rate, with a corresponding reduction in all other salary-based fringe benefits.

b. Reduction in pay resulting from the rejection of an employee who is serving in a probationary promotional position and is rejected during that period is not a disciplinary action subject to these procedures.

5. Discharge

a. Discharge is the permanent removal of an employee from the City’s service.

b. Job abandonment as defined in the City’s Rules and Regulations is neither a “discharge” nor disciplinary action, but is construed as the voluntary resignation of the employee.

E. Disciplinary Appeal Process

1. Upon the suspension without pay, demotion, reduction in pay, or discharge of an employee who is an Association member, the procedures described in Section 3 below shall be followed.

2. These procedures shall also constitute the administrative appeal rights and protections afforded by the Public Safety Officers Procedural Bill of Rights Act (Government Code Sections 3300 et seq.)

3. These disciplinary appeal procedures include notice and four Levels (I, II, III, IV) of Response.

a. Preliminary Notice of Possible Disciplinary Action

No employee for whom this section applies shall be subject to disciplinary action unless prior to the action the employee has received:

i. Notice of possible disciplinary action, including the specific nature of 63 30
such discipline;

ii. A written copy of the charges and the grounds for such charges;

iii. Copies of all relevant materials upon which the charges are based; and

iv. Notice of a reasonable time which shall not be less than seven (7) calendar days within which to respond orally and/or in writing to the charges or schedule a meeting at which to respond orally to the charges.

b. Notice of Disciplinary Action Taken

1. No disciplinary action shall be taken against an employee until the time period provided herein has passed for a response from the employee to the notice of possible disciplinary action and no response was received, or after the employee has responded to the preliminary notice of disciplinary action.

2. Thereafter, the employee shall be given written notice of the discipline to be imposed, if any, including the charges and the grounds for such charges, as well as notice of the employee’s appeal rights under these provisions.
c. Appeals

1. A “disciplinary appeal” is a formal written objection or challenge to any disciplinary action, including dismissal, demotion, suspension, or reduction in salary. The reduction in pay or change in assignment which occurs in the course of regular rotation is not punitive and shall not be subject to this grievance procedure.

2. Appeal of Written Reprimand or Suspension of Three (3) Days or Less

A written reprimand or suspension of three (3) days or less may be appealed in writing to the City Manager within fifteen (15) calendar days of receipt of the notice of disciplinary action.

The City Manager, within a reasonable time, shall conduct a hearing and render a written decision which shall be final

3. Appeal of Suspension of More Than Three (3) Days, Demotion, Reduction in Pay, or Discharge

An employee shall have the right to an appeal of a disciplinary action involving a suspension of more than three (3) days, a demotion, a reduction in pay and/or discharge. The procedures described in Sections 1 through 5 below shall be followed for all appeals.

64 31

1. Notice

(1) Within fifteen (15) calendar days of receiving a written notice of disciplinary action, the employee may submit a written request to the City Manager for a hearing before a hearing officer from the California Office of Mediation and Conciliation.

(2) The parties shall request that State Mediation and
Conciliation supply a list of seven (7) names of
persons experienced in hearing public employment
discipline matters. If the City and the Association are unable to mutually agree on a hearing officer, each party shall alternately strike a name from the list until only one
remains. The order of strike shall be determined by lot.

(3) The hearing shall be scheduled within sixty (60) days of such a request unless both parties agree to waive this
provision.

(4) Written notice of the hearing shall be given to the employee and his/her representative, if any, promptly upon the
scheduling of the hearing, but in no event shall the hearing be scheduled with less than twenty (20) days notice. For good cause, the Hearing Officer may grant a continuance.

(5) This notice shall be mailed by ordinary mail and also by certified mail, return receipt requested, to the employee’s last address of record on file in the Personnel Office. The employee bears the burden of keeping a current address on file.

2. Appearance; Representation; Witnesses; Conduct of Hearing

(1) At the administrative hearing, the employee and the City Manager shall each be entitled to representation.

(2) An official record shall be made of the hearing by a certified court reporter. The cost of a transcript shall be borne by the party requesting a transcript. Such transcript shall be the official record of the proceeding; however, either party may tape record the proceedings.

(3) The hearing may be public or closed, at the employee’s option. Both the employee and City may designate a person who shall not be subject to exclusion as a witness and who 65 32
has investigated the matter at issue in the hearing and whose assistance during the hearing is necessary to the efficient conduct of the hearing. Witnesses shall be subject to cross examination.

(4) The hearing shall proceed generally as follows:

(1) The City and the employee or his or her
representative may make opening statements.

(2) The City shall present evidence in support of the
City’s position. The employee may present evidence
on his or her behalf.

(3) Both the City and the employee may subpoena
witnesses and present rebuttal evidence as they
deem necessary and appropriate.

(4) The Hearing Officer shall rule on any objections made to the admissibility of evidence or otherwise
relating to the conduct of the hearing. Such rulings
shall be final. Hearsay evidence shall be admissible
but shall not form the sole basis for a finding.

(5) The City and the employee may make closing
statements.

(6) Written briefs shall be submitted at the request of either party.

3. Hearing Officer’s Decision

(1) Upon the conclusion of the hearing, the Hearing Officer shall cause proposed findings and recommendations to be prepared in writing and shall certify the same.

(2) The Hearing Officer shall, at a minimum, find whether the City has shown that the charges in support of the
disciplinary action have been substantiated. Such a finding shall be made as to each charge. If the Hearing Officer finds that none of the charges are supported by the evidence presented, the recommendation shall be that no disciplinary action be taken. If the Hearing Officer finds that any or all the charges are supported, he/she shall either:

(1) Recommend that the proposed disciplinary action be
carried out;
66 33

(2) Recommend that no disciplinary action be taken; or

(3) Recommend that the proposed disciplinary action be
modified.

(3) The hearing Officer’s findings and recommendations shall be filed as a permanent record with the City Manager. The City Manager shall deliver a certified copy of such findings and recommendations to the City Council and to the
employee affected by such findings and recommendations.

(4) If, due to any cause, a hearing cannot be held and an employee is consequently denied such a hearing within the time stated herein, action shall be deferred until a hearing can be scheduled.

(5) The cost of the Hearing Officer shall be borne by the City. All other costs shall be the responsibility of the party incurring them.

4. City Council Action

(1) The City Council shall have the following options with respect to the Hearing Officer’s findings and
recommendations:

* Adopt the findings and recommendations as
prepared;

* Modify the findings and recommendations; or

* Reject the Hearing Officer’s findings and
recommendations and adopt separate Council
findings and recommendations.

(2) If the findings and recommendations of the Hearing
Officer are adopted as proposed, the members of the
City Council need not review the record of the hearing
before the Hearing Officer. Otherwise, the
Council shall review such record.

(3) The employee will be notified pursuant to California Code of Civil Procedure section 1094.6 that he or she
has ninety (90) calendar days within which to file an
appeal in Superior Court of the Council’s decision.

67 34

ARTICLE XVII - GRIEVANCE PROCEDURE

A. Definitions

a. A “grievance” is an allegation by an employee or group of employees who claim to have been adversely affected by an alleged violation, misinterpretation, or misapplication of a specific provision of this Agreement, the City’s Personnel Rules and Regulations or Police Department Policies.

b. A “grievant” is an employee adversely affected by an alleged violation, misinterpretation, or misapplication of a specific provision of this Agreement, or the City’s Personnel Rules and Regulations or the Association specifically naming one or more such individuals.

B. General Provisions

1. Until final disposition of a grievance, the grievant shall comply with the directions of the grievant’s immediate supervisor.

2. All documents dealing with the processing of a grievance shall be filed separately from the personnel files of the employee.

3. Time limits for appeal provided at any level of this procedure shall begin the first day following receipt by the grievant of the written decision.

4. If any grievance meeting or hearing is scheduled during duty hours, any employee required by either party to participate as a witness or grievant in such meeting or hearing shall be released for a reasonable period of time from regular duties without loss of pay.

5. An employee may at any time present grievances to the City and have such grievances adjusted without the intervention of the Association, as long as the adjustment is not inconsistent with the terms of an applicable Memorandum of Understanding. The City shall not agree to a resolution of the grievance until the affected Association has received a copy of the grievance and the proposed resolution and has been given the opportunity to file a response. Upon request of the grievant, the grievant may be represented at any stage of the grievance procedure by a representative of the Association.

6. Time limits may be extended by mutual agreement of the parties.

C. Procedures

1. Level I - Information/Resolution

a. An employee who believes he or she has a grievance shall present the grievance orally to the immediate supervisor within fifteen (15) calendar days after the grievant knew, or reasonably should have known, of the circumstances which form the basis for the grievance.
68 35

b. Failure to do so will render the grievance null and void.

c. The immediate supervisor shall hold discussions and attempt to resolve the matter within fifteen (15) calendar days after the presentation of the grievance.

d. It is the intent of this informal meeting procedure that at least one personal conference be held between the aggrieved employee and the immediate supervisor.

2. Level II - Formal Written Grievance

a. If the grievance is not settled during the informal conference and the grievant wishes to press the matter, the grievant shall present the grievance in writing to the Commander within fifteen (15) calendar days after the oral decision by the immediate supervisor.

b. The written information shall include:

1. A description of the specific grounds of the grievance, including names, dates, and places necessary for a complete understanding of the grievance;

2. The provisions of this Agreement or the City’s Personnel Rules and Regulations which are alleged to have been violated;

3. The reasons why the immediate supervisor’s proposed resolution of the problem is unacceptable;

4. The specific actions requested of the City which will remedy the grievance.

c. The Commander shall communicate the decision to the grievant in writing within fifteen (15) calendar days after receiving the grievance. If the Commander does not respond within the time limits, the grievant may appeal to the next level.

d. Within the above time limits, either party may request a personal conference.

3. Level III - Appeal to the Chief of Police

a. If the grievant is not satisfied with the decision at Level II, the grievant may within fifteen (15) calendar days of the receipt of the decision at Level II appeal the decision to the Chief of Police. The grievant shall present the grievance in writing to the Chief of Police within fifteen (15) calendar days after the decision by the Commander.
69 36

b. The written information shall include:

1. a description of the specific grounds of the grievance, including names, dates, and places necessary for a complete understanding of the grievance;

2. the provisions of this Agreement or the City’s Personnel Rules and Regulations which are alleged to have been violated;

3. the reasons why the Commander’s proposed resolution of the problem is unacceptable;

4. the specific actions requested of the City which will remedy the grievance.

c. The Chief of Police shall communicate the decision to the grievant in writing within fifteen (15) calendar days after receiving the grievance. If the Chief of Police does not respond within the time limits, the grievant may appeal to the next level.

d. Within the above time limits, either party may request a personal conference.

4. Level IV - Advisory Mediation

a. If the grievant is not satisfied with the decision at Level III, either party by mutual agreement, may request the assistance of a mediator from the Mediation and Conciliation Service of the State of California.

b. The grievant must make his/her written request to submit the grievance to advisory mediation within fifteen (15) calendar days of the receipt of the decision at Level III.

c. The City and the Association shall mutually agree upon a mediator from the Mediation and Conciliation Service of the State of California.

Those present at mediation shall include the Assistant City Manager, or the person the City Manager designates, the Chief of Police, the grievant, and his/her representative.

d. The proceedings shall be tape recorded, including the opinion of the State mediator. The taped recording shall be sealed, signed, and dated by both parties. A written transcription shall be provided to both parties, if requested.

e. The mediator shall have no authority to resolve the grievance. In the event the grievance is not resolved, neither stipulations, admission, settlement proposals nor concessions agreed to or offered during the mediation shall be admissible at any subsequent hearing.

5. Level V - Appeal to the City Manager

a. If advisory mediation fails, the grievant may within fifteen (15) calendar days file a written appeal to the City Manager.
b. The statement of appeal shall include a copy of the original grievance and a 70 37
clear, concise statement of the reasons for the appeal to Level V. c. Within the fifteen (15) calendar days, the City Manager shall complete fact- finding which may include review of the mediation transcript, scheduling a meeting with the grievant, Chief of Police, and their representatives, if any.
d. The City Manager shall communicate his or her decision to the grievant within fifteen (15) calendar days of the completion of fact-finding. e. The decision of the City Manager shall be final in resolving all employee grievances.

ARTICLE XVIII - WAIVER CLAUSE

Except as otherwise provided herein, no changes or modifications of this Agreement shall be offered, urged, or otherwise presented by the Association or the City during the term of this Agreement, provided, however, that nothing herein shall prevent the pa rties to this Agreement from meeting and conferring and making modifications herein by mutual consent. Any additions or changes in this Agreement shall not be effective unless reduced to writing and properly executed by both parties.

ARTICLE XIX - SEVERABILITY

If any provision of the Agreement, or the application of such provision to any persons or circumstances, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

ARTICLE XX - DURATION

This Agreement shall be effective July 1, 2025, and shall continue in full force and effect until June 30, 2027, and become amendable thereafter. The City and the Association shall meet prior to June 30, 2027 and confer on a successor MOU.

ARTICLE XXI - PERSONNEL RULES AND REGULATIONS

The Personnel Rules and Regulations which shall hereafter be adopted by the City shall control and determine any matters or subjects not specifically provided for herein. The Association shall have the opportunity to meet and consult with management on sai d Personnel Rules and Regulations prior to their adoption by the City Council.

SIGNATURES

For the Police Officers’ Association:

Chris Costa Date
HPOA President

71 38

Jonathan Fernandez Date
HPOA Vice President

_________________________________ ________________________ Kyle Johnson Date
HPOA Secretary/Treasurer

For the City:

_________________________________ ________________________ Dante Hall Date
City Manager

_________________________________ ________________________ Edwin Gato Date
Director of Finance

_________________________________ ________________________ Kristi Carter Date
Human Resources Manager

_________________________________ ________________________ Gregory Ramirez Date
Chief Negotiator, IEDA
72 39

APPENDIX A

Salary Tables

Effective July 6, 2025

CLASSIFICATION Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Police Officer $9,296.49 $9,575.40 $9,862.65 $10,158.55 $10,463.31 $10,777.21 Police Sergeant $10,989.68 $11,319.36 $11,658.96 $12,008.70 $12,368.94 $12,740.05

Effective July 5, 2026

CLASSIFICATION Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Police Officer $9,761.31 $10,054.17 $10,355.78 $10,666.48 $10,986.48 $11,316.07 Police Sergeant $11,539.16 $11,885.32 $12,241.91 $12,609.14 $12,987.38 $13,377.05

73 STEP 1 Effective Date Annual Hours

BARGAINING UNIT/

EMPLOYEE GROUP POSITIONS GRADE ANNUAL HOURLY ANNUAL HOURLY ANNUAL HOURLY ANNUAL HOURLY ANNUAL HOURLY ANNUAL HOURLY MONTHLY CONTRACT CITY MANAGER CM 302,356.7040 145.3638 7/6/2025 2080 ELECTED OFFICIAL COUNCIL MEMBER CCM 831.6000 12/10/2024 ELECTED OFFICIAL MAYOR CCM 831.6000 12/10/2024
ELECTED OFFICIAL VICE MAYOR CCM 831.6000 12/10/2024
EXECUTIVE CHIEF OF POLICE 057 195,339.6536 98.8561 205,106.8240 103.7990 215,362.2640 108.9890 226,130.4760 114.4385 237,436.5552 120.1602 249,308.5608 126.1683 7/6/2025 1976 EXECUTIVE CHIEF OF POLICE / ASSISTANT CITY MANAGER 57A 205,106.6264 103.7989 215,362.0664 108.9889 226,130.4760 114.4385 237,436.9504 120.1604 249,308.3632 126.1682 261,773.9592 132.4767 7/6/2025 1976 EXECUTIVE CITY CLERK 051 123,097.2912 62.2962 129,252.3336 65.4111 135,714.8416 68.6816 142,500.6232 72.1157 149,625.4864 75.7214 157,106.8200 79.5075 7/6/2025 1976 EXECUTIVE CITY CLERK / ASSISTANT CITY MANAGER 51A 129,252.1360 65.4110 135,715.0392 68.6817 142,500.6232 72.1157 149,625.6840 75.7215 157,106.8200 79.5075 164,962.2104 83.4829 7/6/2025 1976 EXECUTIVE CITY CLERK / PIO 052 132,944.6872 67.2797 139,592.7416 70.6441 146,571.5784 74.1759 153,900.3648 77.8848 161,595.3040 81.7790 169,675.1680 85.8680 7/6/2025 1976 EXECUTIVE CITY CLERK / PIO / ASSISTANT CITY MANAGER 52A 139,591.9512 70.6437 146,572.3688 74.1763 153,900.1672 77.8847 161,595.3040 81.7790 169,675.1680 85.8680 178,158.9264 90.1614 7/6/2025 1976 EXECUTIVE COMMUNITY DEVELOPMENT DIRECTOR 056 180,870.3936 91.5336 189,913.5576 96.1101 199,409.2256 100.9156 209,380.1216 105.9616 219,848.9696 111.2596 230,841.2600 116.8225 7/6/2025 1976

EXECUTIVE COMMUNITY DEVELOPMENT DIRECTOR / ASSISTANT CITY

MANAGER
56A 189,913.9528 96.1103 199,409.2256 100.9156 209,379.7264 105.9614 219,849.1672 111.2597 230,841.4576 116.8226 242,383.2736 122.6636 7/6/2025 1976
EXECUTIVE FINANCE DIRECTOR 056 180,870.3936 91.5336 189,913.5576 96.1101 199,409.2256 100.9156 209,380.1216 105.9616 219,848.9696 111.2596 230,841.2600 116.8225 7/6/2025 1976 EXECUTIVE FINANCE DIRECTOR / ASSISTANT CITY MANAGER 56A 189,913.9528 96.1103 199,409.2256 100.9156 209,379.7264 105.9614 219,849.1672 111.2597 230,841.4576 116.8226 242,383.2736 122.6636 7/6/2025 1976 EXECUTIVE PARKS & RECREATION DIRECTOR 054 155,066.9952 78.4752 162,820.2264 82.3989 170,961.1488 86.5188 179,509.5224 90.8449 188,485.1072 95.3872 197,909.2440 100.1565 7/6/2025 1976 EXECUTIVE PARKS & RECREATION DIRECTOR / ASSISTANT CITY MANAGER 54A 162,820.4240 82.3990 170,960.7536 86.5186 179,509.1272 90.8447 188,484.9096 95.3871 197,909.4416 100.1566 207,804.6568 105.1643 7/6/2025 1976
EXECUTIVE PUBLIC WORKS DIRECTOR / CITY ENGINEER 057 195,339.6536 98.8561 205,106.8240 103.7990 215,362.2640 108.9890 226,130.4760 114.4385 237,436.5552 120.1602 249,308.5608 126.1683 7/6/2025 1976

EXECUTIVE PUBLIC WORKS DIRECTOR / CITY ENGINEER / ASSISTANT CITY

MANAGER
57A 205,106.6264 103.7989 215,362.0664 108.9889 226,130.4760 114.4385 237,436.9504 120.1604 249,308.3632 126.1682 261,773.9592 132.4767 7/6/2025 1976
MID
‐
MANAGEMENT PUBLIC WORKS SUPERINTENDENT 253 125,693.7552 63.6102 131,978.6208 66.7908 138,576.8800 70.1300 145,506.3168 73.6368 152,781.3560 77.3185 160,420.1768 81.1843 7/6/2025 1976 MID
‐
MANAGEMENT RECREATION MANAGER 248 98,484.6304 49.8404 103,408.4272 52.3322 108,578.8288 54.9488 114,007.8888 57.6963 119,708.4512 60.5812 125,693.9528 63.6103 7/6/2025 1976 MID
‐
MANAGEMENT SENIOR ACCOUNTANT 249 103,408.2296 52.3321 108,579.0264 54.9489 114,007.8888 57.6963 119,708.2536 60.5811 125,693.7552 63.6102 131,978.8184 66.7909 7/6/2025 1976 NON
‐
REPRESENTED ACCOUNTING TECHNICIAN II 046 83,777.8552 42.3977 87,966.7776 44.5176 92,365.1560 46.7435 96,983.4632 49.0807 101,832.5672 51.5347 106,924.5216 54.1116 7/6/2025 1976 NON
‐
REPRESENTED ADMINISTRATIVE SPECIALIST 045 77,571.8320 39.2570 81,450.7200 41.2200 85,522.6632 43.2807 89,799.3200 45.4450 94,289.3848 47.7173 99,003.5280 50.1030 7/6/2025 1976 NON
‐
REPRESENTED HUMAN RESOURCES ADMINISTRATOR 046 83,777.8552 42.3977 87,966.7776 44.5176 92,365.1560 46.7435 96,983.4632 49.0807 101,832.5672 51.5347 106,924.5216 54.1116 7/6/2025 1976 NON
‐
REPRESENTED HUMAN RESOURCES MANAGER 050 113,978.8416 57.6816 119,677.8232 60.5657 125,656.4088 63.5913 131,945.2264 66.7739 138,541.9048 70.1123 145,469.1680 73.6180 7/6/2025 1976 NON
‐
REPRESENTED HUMAN RESOURCES TECHNICIAN 045 77,571.8320 39.2570 81,450.7200 41.2200 85,522.6632 43.2807 89,799.3200 45.4450 94,289.3848 47.7173 99,003.5280 50.1030 7/6/2025 1976 NON
‐
REPRESENTED POLICE COMMANDER 055 167,472.5208 84.7533 175,846.6112 88.9912 184,638.2304 93.4404 193,870.1024 98.1124 203,563.7656 103.0181 213,742.1416 108.1691 7/6/2025 1976 POA POLICE OFFICER PO 111,558.3040 53.6338 114,905.4400 55.2430 118,352.0000 56.9000 121,903.1840 58.6073 125,560.2400 60.3655 129,327.1200 62.1765 7/6/2025 2080 PT BENEFITED POLICE OFFICER TRAINEE PTR 100,402.6400 48.2705 7/6/2025 POA POLICE SERGEANT SGT 131,876.5760 63.4022 135,832.3200 65.3040 139,907.8720 67.2634 144,105.1040 69.2813 148,427.7600 71.3595 152,881.0400 73.5005 7/6/2025 2080 PT UNBENEFITED ADMINISTRATIVE SECRETARY PT20 30.6156 32.1464 33.7537 35.4415 37.2135 39.0742 7/6/2025 PT UNBENEFITED FACILITY ATTENDANT PT1 17.5049 18.3327 19.2493 20.2118 21.2223 22.2834 7/6/2025 PT UNBENEFITED INTER ADMIN / ENG / PLANNING PT1 17.5049 18.3327 19.2493 20.2118 21.2223 22.2834 7/6/2025 PT UNBENEFITED LIFEGUARD / SWIM INSTRUCTOR I PT1 17.5049 18.3327 19.2493 20.2118 21.2223 22.2834 7/6/2025 PT UNBENEFITED LIFEGUARD / SWIM INSTRUCTOR II PT2 17.9835 18.8826 19.8269 20.8181 21.8591 22.9519 7/6/2025 PT UNBENEFITED SENIOR LIFEGUARD PT4 19.0787 20.0326 21.0342 22.0860 23.1903 24.3498 7/6/2025 PT UNBENEFITED SPORTS COACH / REFEREE PT1 17.5049 18.3327 19.2493 20.2118 21.2223 22.2834 7/6/2025 PT UNBENEFITED SWIM COACH PT6 20.2406 21.2527 22.3153 23.4311 24.6025 25.8327 7/6/2025 TEAMSTERS FT ACCOUNTING TECHNICIAN I 145 69,967.9864 35.4089 73,466.2968 37.1793 77,139.4832 39.0382 80,996.6352 40.9902 85,046.4472 43.0397 89,298.7992 45.1917 7/6/2025 1976 TEAMSTERS FT ASSISTANT ENGINEER 150 102,805.9448 52.0273 107,946.1136 54.6286 113,343.5576 57.3601 119,010.5280 60.2280 124,961.2520 63.2395 131,209.3640 66.4015 7/6/2025 1976 TEAMSTERS FT ASSISTANT PLANNER 149 95,190.0456 48.1731 99,949.4392 50.5817 104,946.9408 53.1108 110,194.4064 55.7664 115,703.8896 58.5546 121,489.0248 61.4823 7/6/2025 1976 TEAMSTERS FT ASSOCIATE ENGINEER 151 111,030.0568 56.1893 116,582.0240 58.9990 122,410.8288 61.9488 128,531.6864 65.0464 134,958.0336 68.2986 141,705.8760 71.7135 7/6/2025 1976 TEAMSTERS FT COMMUNITY DEVELOPMENT SPECIALIST 146 74,831.5152 37.8702 78,572.8736 39.7636 82,501.7544 41.7519 86,630.8040 43.8415 90,958.0464 46.0314 95,506.0080 48.3330 7/6/2025 1976 TEAMSTERS FT INFORMATION SYSTEMS ADMINISTRATOR 151 111,030.0568 56.1893 116,582.0240 58.9990 122,410.8288 61.9488 128,531.6864 65.0464 134,958.0336 68.2986 141,705.8760 71.7135 7/6/2025 1976 TEAMSTERS FT INFORMATION SYSTEMS SPECIALIST 148 88,138.6896 44.6046 92,545.5648 46.8348 97,172.9616 49.1766 102,031.3528 51.6353 107,132.9896 54.2171 112,489.7280 56.9280 7/6/2025 1976 TEAMSTERS FT LANDSCAPING AND LIGHTING PROGRAM COORDINATOR 147 81,610.1832 41.3007 85,690.8208 43.3658 89,975.3816 45.5341 94,474.5360 47.8110 99,197.9664 50.2014 104,157.9240 52.7115 7/6/2025 1976 TEAMSTERS FT MAINTENANCE AIDE 141 51,428.5616 26.0266 54,000.3256 27.3281 56,700.1344 28.6944 59,534.9040 30.1290 62,511.7480 31.6355 65,637.3848 33.2173 7/6/2025 1976 TEAMSTERS FT MAINTENANCE WORKER I 143 59,985.8272 30.3572 62,985.3952 31.8752 66,134.3488 33.4688 69,441.3824 35.1424 72,913.4120 36.8995 76,558.9344 38.7444 7/6/2025 1976 TEAMSTERS FT MAINTENANCE WORKER II M46 74,104.7424 37.5024 77,809.9400 39.3775 81,700.6840 41.3465 85,785.4712 43.4137 90,074.7744 45.5844 94,578.6712 47.8637 7/6/2025 1976 TEAMSTERS FT MANAGEMENT ANALYST 147 81,610.1832 41.3007 85,690.8208 43.3658 89,975.3816 45.5341 94,474.5360 47.8110 99,197.9664 50.2014 104,157.9240 52.7115 7/6/2025 1976 TEAMSTERS FT PARKING ENFORCEMENT OFFICER 142 57,023.6056 28.8581 59,875.1712 30.3012 62,868.8112 31.8162 66,012.2320 33.4070 69,312.9424 35.0774 72,778.4512 36.8312 7/6/2025 1976 TEAMSTERS FT POLICE SUPPORT SPECIALIST 145 69,967.9864 35.4089 73,466.2968 37.1793 77,139.4832 39.0382 80,996.6352 40.9902 85,046.4472 43.0397 89,298.7992 45.1917 7/6/2025 1976 TEAMSTERS FT PUBLIC WORKS INSPECTOR / SPECIALIST 147 81,610.1832 41.3007 85,690.8208 43.3658 89,975.3816 45.5341 94,474.5360 47.8110 99,197.9664 50.2014 104,157.9240 52.7115 7/6/2025 1976 TEAMSTERS FT PUBLIC WORKS SUPERVISOR 147 81,610.1832 41.3007 85,690.8208 43.3658 89,975.3816 45.5341 94,474.5360 47.8110 99,197.9664 50.2014 104,157.9240 52.7115 7/6/2025 1976 TEAMSTERS FT RECREATION COORDINATOR 146 74,831.5152 37.8702 78,572.8736 39.7636 82,501.7544 41.7519 86,630.8040 43.8415 90,958.0464 46.0314 95,506.0080 48.3330 7/6/2025 1976 TEAMSTERS FT RECREATION SUPERVISOR 147 81,610.1832 41.3007 85,690.8208 43.3658 89,975.3816 45.5341 94,474.5360 47.8110 99,197.9664 50.2014 104,157.9240 52.7115 7/6/2025 1976 TEAMSTERS FT RECREATION TECHNICIAN 145 69,967.9864 35.4089 73,466.2968 37.1793 77,139.4832 39.0382 80,996.6352 40.9902 85,046.4472 43.0397 89,298.7992 45.1917 7/6/2025 1976 TEAMSTERS FT SENIOR CLERK 143 59,985.8272 30.3572 62,985.3952 31.8752 66,134.3488 33.4688 69,441.3824 35.1424 72,913.4120 36.8995 76,558.9344 38.7444 7/6/2025 1976 TEAMSTERS FT SENIOR PLANNER 151 111,030.0568 56.1893 116,582.0240 58.9990 122,410.8288 61.9488 128,531.6864 65.0464 134,958.0336 68.2986 141,705.8760 71.7135 7/6/2025 1976 TEAMSTERS PT AQUATICS POOL MANAGER PT12 24.1683 25.3767 26.6456 27.9779 29.3767 30.8455 7/6/2025 TEAMSTERS PT OFFICE ASSISTANT I PT1 17.5049 18.3327 19.2493 20.2118 21.2223 22.2834 7/6/2025 TEAMSTERS PT OFFICE ASSISTANT II PT2 17.9835 18.8826 19.8269 20.8181 21.8591 22.9519 7/6/2025 TEAMSTERS PT RECREATION AIDE PT1 17.5049 18.3327 19.2493 20.2118 21.2223 22.2834 7/6/2025 TEAMSTERS PT RECREATION LEADER I PT2 17.9835 18.8826 19.8269 20.8181 21.8591 22.9519 7/6/2025 TEAMSTERS PT RECREATION LEADER II PT7 20.8477 21.8902 22.9848 24.1339 25.3407 26.6076 7/6/2025 TEAMSTERS PT RECREATION LEADER III PT11 23.4643 24.6376 25.8694 27.1629 28.5210 29.9471 7/6/2025 TEAMSTERS PT RECREATION SPECIALIST PT4 19.0787 20.0326 21.0342 22.0860 23.1903 24.3498 7/6/2025 Last Revised 11/17/2025
Adopted by City Council on 12/09/2025
STEP 6
FY 2025-2026 SALARY SCHEDULE
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
74 CONSENT CALENDAR

AGENDA ITEMS

4. 25-322
75 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of December 9, 2025

TO: Mayor and Members of the City Council

SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
Kristi Carter, Human Resources Manager

SUBJECT: Approve a One-Time Non-Pensionable Payment of 3% of Total Gross Salary for the 2024-25 Fiscal Year for Employees Covered Under the Executive Level, Mid -Management, and Non -
Represented Employee Pay and Benefits Plans

RECOMMENDED ACTION:

Staff recommends that the City Council adopt a Resolution approving a three percent (3%) one-time non-pensionable payment for employees covered under the Executive Level, Mid- Management, and Non -Represented Pay and Benefits Plans and authorize the City Manager to execute any related amendments to the approved 2025-2027 Pay and Benefits Plans.

DISCUSSION:

On September 23, 2025, the City Council approved the 2025-2027 Pay and Benefits Plans for Executive Level, Mid -Management, and Non -Represented employee groups. In recognition of continued service and performance, and to support workforce stability in a competitive labor market, staff recommends approval of a three percent (3%) one-time non- pensionable payment of total gross salary for FY 2024-25 for employees within these groups.

Consultations with the executive level, mid-management, and non-represented employee groups have been completed; proceeding with the revisions to the Pay and Benefits Plans for the executive, mid-management, and unrepresented groups is timely. A summary of the changes proposed by the employee groups is set forth below:

//
76 Pay and Benefits Plan
Employee Group Summary of Terms
Total # of
employees Cost
Executive Level
Three percent (3%)
One-Time Non-
PERSable retention
payment 7 $51,000
Mid-Management
Three percent (3%)
One-Time Non-
PERSable retention
payment 2 $12,000
Non-Represented
Three percent (3%)
One-Time Non-
PERSable retention
payment 6 $27,000

This recommendation aligns with the City’s strategic goals of maintaining a competitive total compensation package while ensuring fiscal responsibility and operational effectiveness.

This adjustment supports employee morale, retention, and recognition efforts, particularly in a period of constrained recruitment across public agencies.

FISCAL IMPACT:

The staff recommends that the City Council authorize an appropriation for a one-time retention payment of 3% of the gross salary for non-represented employees for the fiscal year 2024-25, to be distributed in fiscal year 2025-26. Sufficient resources are available in the General Fund reserve to support this allocation. The Finance Department has conducted a thorough review of the proposal and confirmed that it aligns with the City’s established financial parameters.

ATTACHMENTS:

1. Resolution

2. Revised 2025-2027 Executive Pay and Benefits Plan

3. Revised 2025-2027 Mid-Management Pay and Benefits Plan

4. Revised 2025-2027 Non-Represented Pay and Benefits Plan 77 HERCULES CITY COUNCIL
RESOLUTION 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING A ONE-TIME NON-PENSIONABLE PAYMENT OF 3% OF TOTAL GROSS SALA RY FOR THE 2024-25 FISCAL YEAR FOR EMPLOYEES COVERE D UNDER THE

EXECUTIVE LEVEL, MID -MANAGEMENT, AND NON -REPRESENTED EMPLOYE E

PAY AND BENEFITS PLANS

WHEREAS, on September 23, 2025 , the City Council approved the 2025-2027 Pay and Benefits Plans for the Executive Level, Mid-Management, and Non-Represented employee groups; and

WHEREAS, the City desires to recognize continued service and performance, and support employee morale, retention, and stability in a competitive labor market; and

WHEREAS, consultations with affected employee groups have been completed and the proposed adjustment reflects the City’s ongoing commitment to maintaining a competitive and fiscally responsible total compensation structure; and

WHEREAS, the one -time costs for the three percent (3% ) one-time non - pensionable payment for eligible employees in the Executive Level, Mid -Management, and Non-Represented employee groups will be $90,000; and

WHEREAS, staff recommends that the City Council authorize a one-time retention payment of 3% of the gross salary for non -represented employees for the fiscal year 2024-25, to be distributed in fiscal year 2025-26. Sufficient resources are available in the General Fund reserve to support this allocation. The Finance Department has conducted a thorough review of the proposal and confirmed that it aligns with the City’s established financial parameters; and

WHEREAS, the City desires to amend the Pay and Benefit s Plans of the Executive, Mid-Management and Non-Represented Employee Groups.

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

1. The City Council approves a three percent ( 3%) one-time, non -pensionable payment of total gross salary for the 202 4-25 fiscal year for employees covered under the Executive Level, Mid -Management, and Non -Represented Pay and Benefits Plans.

2. The City Council hereby approves and authorizes the City Manager to make any necessary amendments to the Executive, Mid-Management, and Non- Represented Pay and Benefits Plans to implement this action. 78 3. The City Council hereby authorize an appropriation for a one-time retention payment of 3% of the gross salary for non-represented employees for the fiscal year 2024-25, to be distributed in fiscal year 2025-26.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 9th day of December 2025, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey, Mayor

ATTEST:

Eibleis Melendez, City Clerk
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REVISED PAY & BENEFITS PLAN FOR

EXECUTIVE LEVEL EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2025 through June 30, 2027
City Council Resolution Nos. 25-059 and 25-XXX

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TABLE OF CONTENTS
ARTICLE I. TERMS .............................................................................................................. 3 SECTION 1 - DEFINITION OF TERMS ........................................................................... 3 ARTICLE II. COMPENSATION ..............................................................................................4-8 SECTION 1 - PAY PLAN (Pay Plan- Exhibit A – Pg. 16) .................................................. 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ............................. 4 SECTION 3 - OTHER PAY ADJUSTMENTS ....................................................................... 4 SECTION 4 - CREDIT TOWARD CITY SERVICES ............................................................. 4 SECTION 5 - UNIFORM ALLOWANCE .............................................................................. 5 SECTION 6 – MANAGEMENT INCENTIVE .................................................................... 5 SECTION 7 - EDUCATION REIMBURSEMENT ................................................................. 5 SECTION 8 - LONGEVITY PAY ................................................................................... 5-6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION....................... 6 SECTION 10 - COMPENSATORY TIME OFF ..................................................................... 6 SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR).......................................................................................................................6-8 SECTION 12 – COMPUTER LOAN PROGRAM ................................................................. 8 SECTION 13 – DEFERRED COMPENSATION .................................................................. 8 ARTICLE III. RETIREMENT BENEFITS ................................................................................. 8-9 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN ................8-9 ARTICLE IV. INSURANCE BENEFITS ................................................................................ 9-10 SECTION 1 - INSURANCE ........................................................................................... 9-10 ARTICLE V. SICK LEAVE BENEFITS .................................................................................... 11 SECTION 1 - SICK LEAVE ACCRUAL PLAN ................................................................... 11 ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS .......................... 11-14 SECTION 1 – HOLIDAYS ............................................................................................ 11-12 SECTION 2 - VACATION .................................................................................................. 12 SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN ............................................ 12-13 SECTION 4 - BEREAVEMENT LEAVE ............................................................................. 13 SECTION 5 - ADDITIONAL LEAVES ........................................................................... 13-14 ARTICLE VII. SEPARATION ................................................................................................. 15-16 SECTION 1 – SEPARATION FROM CITY SERVICES ..................................................... 15 SECTION 2 – SAVINGS CLAUSE ..................................................................................... 15 SECTION 3 - IMPLEMENTATION AND DURATION ........................................................ 15 *NOTE: ARTICLE II, SECTION 1 (Pay Plan-
Exhibit A – Pg. 16)

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ARTICLE I. TERMS
SECTION 1 - DEFINITION OF TERMS

1.1 The following terms, whenever used in the Plan, shall have the meaning set forth in this Section:

A. CITY: Shall mean the City of Hercules.

B. CITY MANAGER: Shall mean the City Manager or their designee.

C. DAYS: Shall mean calendar days except where working days are expressly specified.

D. EXECUTIVE LEVEL EMPLOYEE: Shall mean individuals appointed to Executive Level employee level positions by the City Manager.

E. FISCAL YEAR: Shall mean the 12-month period from July 1 through June 30.

F. PAY PERIOD: Shall mean a two-week period, beginning Sunday at 12:00 a.m. through the following Saturday at 11:59 p.m. and equal to 76 hours, designated by the City Manager.

G. PUBLIC EMPLOYEES’ PENSION REFORM ACT (PEPRA): Shall mean the California Public Employees’ Pension Reform Act of 2013, including AB 340 (Furutani, Chapter 296, Statutes of 2012) and AB 197 (Buchanan, Chapter 297, Statutes of 2012) and all subsequent amendments.

H. PERS: Shall mean the California Public Employees’ Retirement System (CalPERS).

I. PUBLIC AGENCY EXPERIENCE: Shall mean prior service in a public agency.

J. RETIREE: Shall mean a former employee of the City who has been granted and is receiving a regular service or disability retirement from PERS.

K. SERIOUS INJURY OR ILLNESS: Shall mean, for the purposes of benefits provided by Article V, Section 1.04 herein, an injury or illness certified by the City to require a recuperation period of 30 days or more.

L. YEAR: Shall mean fiscal year, except where calendar year is expressly specified.

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ARTICLE II. COMPENSATION

SECTION 1 - PAY PLAN

1.1 Effective July 1, 2025, through June 30, 2027, the pay plan for Executive Level employees is set forth on Exhibit “A”, attached hereto.

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

2.1 On the basis of the evaluation of an employee’s performance, an employee shall be eligible for a pay rate advancement added to their base pay of an amount between zero and 10 percent, not to exceed the top of the salary range, effective at the beginning of the pay period following an employee’s anniversary date.

SECTION 3 - OTHER PAY ADJUSTMENTS

3.1 Bonus Pay – As recognition of a specific, non-permanent work effort or in recognition of ongoing job performance which has consistently exceeded the highest standards, Bonus Pay may be awarded to an Executive Level employee by the City Manager. The range of this Bonus Pay may be from 2% to 10% of the Executive Level employee's annual salary and be paid in one lump sum payment. Executive Level employees have the option of depositing any such bonus payment into their 457 Deferred Compensation Plan or 401(a) Plan, subject to plan limits.

3.1 is suspended for the term of this Pay Plan.

3.2 Assistant City Manager – The City Manager may designate one of the Executive Level employees to also serve as Assistant City Manager. Each Executive Level Employee will have a separate job classification for their current classification/Assistant City Manager. This separate classification for each Executive Level Employee will have a salary table associated with it to include a 5% salary increase to each step. When an Executive Level Employee is assigned the designation of Assistant City Manager that employee shall receive the pay rate listed in the Executive Level employees separate job classification and salary schedule that includes Assistant City Manager. If another Executive Level employee is designated to serve as Acting Assistant City Manager if the Assistant City Manager is unavailable for a full day or more, the designated Executive Level employee shall receive the pay rate listed in the Executive Level Employees separate job classification and salary schedule that includes Assistant City Manager at the same step they currently hold.

SECTION 4 - CREDIT TOWARD CITY SERVICES

4.1 Each Executive Level employee shall receive up to $300 per year non-cash credit which may be applied to the cost of any City program fees incurred by the Executive Level employee or immediate family member. Such credit is not transferable and cannot be converted to cash. This credit shall only apply to services provided directly by the City and not to any third-party service provider.

4.1 is suspended for the term of this Pay Plan.

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SECTION 5 - UNIFORM ALLOWANCE

5.1 The Police Chief shall be entitled to an annual clothing allowance of $900.00 ($75.00/month) as payment for such maintenance and replacement. Such compensation shall be made semi-annually during the second pay period in January and the second pay period in July. Payment shall be made by a separate check and not as part of a regular paycheck. Employees shall become eligible to receive the first semi-annual payment following their first anniversary date. With respect to the time between the employee’s first anniversary date and the semi-annual payment, the allowance will be prorated on a monthly basis with an employee having to work more than sixteen (16) days to receive payment for that month. The uniform allowance is considered a prospective payment and there shall be no payment or reimbursement upon separation from City service.

SECTION 6 – MANAGEMENT INCENTIVE

6.1 A Management Incentive of $200 per month shall be provided to Employees appointed to Executive Level classes who are not assigned a City vehicle for use of their personal vehicle and for use of personal mobile phones to conduct City Business.

6.2 Any employee granted a City vehicle for his/her exclusive use shall not receive a car allowance or mileage reimbursement payments.

SECTION 7 - EDUCATION REIMBURSEMENT

7.1 Executive Level employees shall be eligible to receive up to $4,000 per fiscal year reimbursement of expenditures by the Executive Level employee for tuition, books, travel and any other costs associated with their successful completion of any professional or educational program approved by the City Manager. This benefit shall be funded at the rate of $30,000 per year and is available to Executive Level employees on a first come , first served basis. Once the total annual benefit amount of $30,000 is reached, the benefit is no longer available to any Executive Level employee until the next fiscal year.

SECTION 8 - LONGEVITY PAY

8.1 Executive Level non-sworn employees are eligible to receive Longevity Pay based on number of years of service. In addition to an employee’s base salary, exclusive of all premium and other pays, each employee shall receive Longevity Pay added to the employee’s base salary after the completion of:

At 7 years of service: $200 per month
At 10 years of service: $300 per month
At 14 years of service: $400 per month
At 16 years of service: $500 per month

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Executive Level sworn employees are eligible to receive Longevity Pay calculated as a percentage of their salary and the city will make the payments in 26 bi-weekly installments. The calculations, based on total sworn public service time will be as follows:

At 5 years of service: 2% of salary At
10 years of service: 4% of salary At
15 years of service: 6% of salary At
20 years of service: 8% of salary At
25 years of service: 10% of salary

8.2 The effective date of a Longevity Pay increase shall be the beginning of the pay period following the date of eligibility. The computation of Longevity Pay increases shall not be cumulative.

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

9.1 Upon retirement or separation from City employment, Executive Level employees shall receive cash out equivalent for any eligible unused leave balances. Separating Executive Level employees shall have the option of receiving cash out or depositing the unused leave balance into their 457 Deferred Compensation Plan, subject to Federal law plan limits.

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time-Off (CTO) is normally not accrued for exempt employees; however, if an Employee should have a CTO accrual balance and there is a change in position or a carryover from other terms and conditions with the employer, the CTO accrual balance will qualify as eligible for conversion to either the Executive Level employee’s 401(a) or 457(b) Plan. Any such conversion must occur within 30 days of appointment.

SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR)

11.1 The City will provide an optional monetary per month for safety employees and non- safety employees with an annual three percent (3%) adjustment paid on January 1st of each year to employees who retire as regulated by the Public Employee’s Retirement System. To be eligible for the optional monies, an employee must retire as follows:

1. Service Retirement: Employees who have served the City for at least ten (10) consecutive years immediately prior to retirement and are at least fifty (50) years old when they separate service from the City.

2. Disability Retirement: Employees who retire with a disability retirement are not required to be a certain age but must have at least twenty (20) years of service with the City.

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11.2 To be eligible, employees must also have a minimum amount of sick leave on the books, as outlined in the chart below. If an employee has below the amount of sick leave required for their years of service, they will only be eligible for the percentage paid equivalent to the amount of sick leave they do have on the books.

Years of
Service
Amount of sick leave hours on the books
on the day employee separates service
Percentage of Optional
Money Available
10 480 50
11 528 55
12 576 60
13 624 65
14 672 70
15 720 75
16 768 80
17 846 85
18 864 90
19 912 95
20 960 100
21 960 100
22 960 100
23 960 100
24 960 100
25 No minimum amount required 100

11.3 Employees must retire within one hundred twenty (120) days of separation from City employment to be eligible to receive the optional money allowance. In addition, employees who separate service from the City of Hercules, but do not retire as a PERS annuitant, shall not be eligible for medical retirement under this program.

11.4 Retiree Reaches Age 65 – The City will pay a portion of the optional money to a retiree until the retiree reaches age 65, upon which they are required to enroll in Medicare.

At that time, the optional money will drop to an amount equivalent to the Kaiser Supplemental to Medicare rate through PERS. The retiree will be eligible for the same percentage of the Supplemental Optional Monies as they were eligible for under the Basic Optional Monies plan. Employees who are not eligible for Medicare must provide the City proof that they are not eligible for Medicare, either through their own employment history or their spouse’s and after providing such proof, the city will continue to pay the percentage of the Basic Optional Monies Plan. If proof is not provided, the City will automatically begin paying the Supplemental Optional Monies Plan percentages.

This benefit, which is effective January 1, 2001, is expected to last into perpetuity. The funds being established for this program may not be used by the City or Executive Level employees for any purpose other than what is expressly stated in this section of the Pay Plan. If in the future the City and Executive Level employees mutually agree to end or modify this benefit, they can do so only for active employees. Any retiree who is currently receiving this benefit will continue to receive the benefit as stated in the Pay

86 8

Plan that was in effect at the time of their retirement. Conversely, if the City and Executive Level employees increase this benefit, they can do so only for active employees and retiree benefits will remain the same as it was when they retired.

The City shall provide to the Executive Level employees an annual statement of prior year balances in the medical retirement fund no later than December 31st of each year.

11.5 Payment will be made on a bi-annual basis. The optional money allowance for the months of January through June will be made the third week in July; July through December will be paid the third week in January of each year. Checks will be mailed to the address on file. Supplemental Optional Money payments are subject to applicable Federal and State Income Tax regulations.

SECTION 12 - COMPUTER LOAN PROGRAM

12.1 Each employee is eligible to participate in the City of Hercules Loan Program for Employee Purchase of a Personal Computer, tablet, software or hardware. Maximum loan amount is $2,500 and may not be more than one loan outstanding at any time.

No interest will be charged by the City on loans under this program.

SECTION 13 – DEFERRED COMPENSATION

13.1 401(a) Deferred Compensation Plan: All Executive Level employees shall receive an employer contribution equivalent to 4% of their salary from the City, deposited into the City sponsored 401(a) Deferred Compensation Plan, consistent with the limits, policies and conditions established by MissionSquare Retirement and Federal Tax Laws.

13.2 In addition, effective October 1, 2025, all Executive Level employees shall receive an employer contribution equivalent to 5% of their salary on a one-to-one match deposited into their MissionSquare Retirement 401(a) Deferred Compensation Plan through payroll deduction subject to the limits, policies and conditions established by MissionSquare Retirement and Federal Tax laws.

13.3 457 Deferred Compensation Plan: All Executive Level employees may make voluntary contributions to the MissionSquare Retirement 457 Deferred Compensation Plan through payroll deduction.

ARTICLE III. RETIREMENT BENEFITS
SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN

1.1 The City agrees to provide all Executive Level employees with retirement benefits under the terms of its current Retirement Plan with CalPERS.

personnel hired after December 11, 2011 and prior to January 1, 2014 shall receive the PERS benefit formula of 3%@55.

Unrepresented non-public safety employees hired prior to January 1, 2013 will pay the 7% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Unrepresented public safety employees hired prior to January 1, 2013 will pay the 9% employee percentage of PERS contributions.

Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.3 Non-public safety Executive Level employees hired prior to January 1, 2014 will pay the 7% employee percentage of PERS contributions. Effective October 21, 2108, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Public safety Executive Level employees hired prior to January 1, 2014 will pay the 9% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.4 The PERS benefit formula and percentages paid by any Executive Level employee will change for all newly hired Executive Level employees on or after January 1, 2014 who are not already in a PERS recognized retirement system, in accordance with AB 340, signed into law on September 12, 2012. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.5 Sworn personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2.7%@57, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period.. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.6 Non-public safety personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2%@62, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive three (3) year period. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

1.1 The City’s contribution towards the employee’s health premium will equal the Kaiser rate for the prior calendar year plus the first 3% of the rate increase at each level of coverage. The employee shall contribute a maximum of up to 3% of the rate increase and the City will be responsible for rate increases above 6%. 88 10

1.2 If an Executive Level employee elects no health coverage, and can demonstrate to the City, on an annual basis or any other time upon request, that the Executive Level employee has alternative health care coverage, the Executive Level employee shall be entitled to any one of the following options:

1. The City will pay 50% of the eligible contribution into the Executive Level employee's 457 Plan account; or

2. The City will pay to the Executive Level employee directly 50% of the eligible contribution in cash; or

3. At the Executive Level employee's option, the City will pay a portion of the eligible contribution to increase the Executive Level employee's supplemental life insurance coverage and the Executive Level employee will receive the remainder of the eligible contribution under either option one or two above.

If an Executive Level employee's alternative health coverage is lost due to unforeseen circumstances, the Executive Level employee will upon request be covered by the City's health plan, subject to carrier approval.

1.3 Dental/Vision Insurance – The City will pay for the entire cost of all dental and vision insurance premiums for Executive level employees and their eligible dependents.

1.4 Life Insurance and AD&D - The City agrees to provide Executive Level employees $100,000 term life insurance and accidental death and dismemberment insurance at no cost to the Executive Level employee. Additional coverage on the same policy may be purchased by individual Executive Level employees through approved payroll deduction.

1.5 Short Term and Long Term Disability Insurance - Executive Level employees shall receive short term and long term disability insurance consistent with the highest level of similar coverage received by any bargaining unit in the City, at no cost to the Executive Level employee.

1.6 Employee Assistance Plan - The City agrees to continue an Employee Assistance Program for all Executive Level employees. Individuals eligible for coverage include Executive Level employees and their household members. The term household members encompasses anyone living in the Executive Level employee's household and can include, as examples, spouse, domestic partners, grandparents, sister or grandchildren, and eligible dependents.
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ARTICLE V. SICK LEAVE BENEFITS
SE CTION 1 - SICK LEAVE ACCRUAL PLAN

1.1 The City shall provide paid sick leave benefits to all Executive Level employees which accrues at the rate of eight (8) hours per month. The maximum sick leave accrual for Executive Level employees is 2080 hours. If an Executive Level employee has 2080 hours (one year) of accrued unused sick leave, the Executive Level employee shall cease earning sick leave until such time as their unused balance falls below 2080 hours.

1.2 Executive Level employees are not subject to sick leave accrual deduction for absences of less than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Executive Level employees to report absences due to sickness of less than one (1) day.

ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS SECTION 1 – HOLIDAYS

1.1 Executive Level employees shall receive 14 designated holidays per year to be observed during each Fiscal Year (July 1-June 30). Executive Level employees normally scheduled to work on those days will be given nine and a half (9.5) hours off with pay provided they are eligible as set forth below. Floating Holidays may not be carried forward from one fiscal year to the next and are not compensable at the time of separation from City service.

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veterans Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

Executive Level employees on approved vacation or sick leave shall not be charged vacation or sick leave for the Holiday.

Additional Christmas Holidays - For the term of this Pay Plan and consistent with past practice, the majority of the City’s offices will continue to be closed during the Christmas week. In lieu of holiday pay, employees who were otherwise eligible for holiday pay described below can select to use any unused, accrued vacation, sick or

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compensatory time available in order to receive pay for these days. Alternatively, employees can choose to take unpaid leave during these days.

SECTION 2 - VACATION

Except as otherwise provided in this Section, employees shall accrue vacation as follows:

YEARS OF SERVICE COMPLETED ANNUAL ACCRUAL RATE
1 through 4 96 hours
5 through 9 120 hours
10 through 15 144 hours
16 through 19 160 hours
Beginning at 20 years 176 hours

2.1 Executive Level employees who reach 280 hours of accrued unused vacation shall cease earning any vacation until their vacation accrual falls below 280 hours.

2.2 On June 30 of each year the City shall automatically convert to cash all Executive Level employees' vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual Executive Level employee's MissionSquare Retiree Health Savings Program or into member’s previously established City-sponsored investment account.

2.3 Consistent with City policy employees may sell back up to 40 hours of their accrued vacation annually, one time during the fiscal year.

SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN

3.1 MissionSquare Retiree Health Savings (RHS) Program allows employees to accumulate assets to pay for health insurance and out-of-pocket expenses in retirement. The RHS Plan has a number of advantages including tax-deferred contributions, tax-deferred investment earnings, and tax-free withdrawals for eligible medical expenses for participants, their spouses and dependents.

3.2 The City shall automatically deposit 2% of each Executive Level employee's salary into the individual Executive Level employee's MissionSquare Retiree Health Savings program. This benefit is paid from the Executive Level employee's salary and not by the City.

Executive Level employees will be permitted to cash out and deposit unused leave accruals in their Retiree Healthcare Savings Plan as described below.

On June 30 of each year the City shall automatically convert to cash, up to 40 hours each Executive Level employee's vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual’s MissionSquare Retiree Health Savings Program.
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On June 30 of each year the City shall automatically convert to cash up to 40 hours of Executive Level employee's unused Executive Leave and deposit the cash balance into the individual’s MissionSquare Retiree Health Savings program.

SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive up to five (5) days of paid of bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, step-parent, parents-in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sibling, brother/sister-in-law, legal guardian or with approval by Human Resources, a substitute family member for a person defined above.

At the discretion of the City Manager, or their designee, additional time may be taken by the Executive Level employee using their accrued leave.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

Requesting Leave – Upon request, the City Manager may grant an Executive Level employee an unpaid leave of absence not to exceed three (3) months. Such leave shall be discretionary and based upon the needs of the City. Whenever possible, such request shall be submitted at least six (6) weeks in advance. Approval of the request may be with specific terms and conditions negotiated by the City Manager and the Executive Level employee.

Extension of Leaves – During the period of the Leave of Absence, an Executive Level employee may request that the leave be extended by submitting such a request in writing to the City Manager stating the reason for the extension. Such a request may be approved or disapproved by the City Manager as described in the above section. Under normal circumstances, no Leaves of Absence exceeding one (1) year will be granted.

5.2 Executive Leave – Executive Level employees shall receive 80 hours of Executive Leave on July 1 of each year as flexible compensation for the irregular duty periods, work in excess of 40 hours per week, and unpredictable demands on Executive Level employee’s time. Executive Leave must be used prior to June 30 of the fiscal year it was awarded or it is lost.

On June 30 of each year the City shall automatically convert to cash up to 40 hours of Executive Level employees unused Executive Leave and deposit the cash balance into the individual Executive Level employee’s MissionSquare Retiree Health Savings program .

New Executive Level employees shall receive the following bank of hours of Executive Leave based on hire date as follows:

Date of Employment Credit for Executive Leave
July 1 through September 30 60 hours
Oct 1 through December 31 40 hours
Jan 1 through March 31 20 hours
April 1 through June 30 0 hours

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5.3 Pregnancy Disability Leave - An Executive Level employee disabled due to pregnancy may be entitled to a leave of absence for the period of disability up to three months.

Executive Level employees on Pregnancy Disability Leave may utilize accrued unused sick leave and vacation during the leave period.

5.4 Family and Medical Leave Act of 1993 – The parties acknowledge the applicability of the Family and Medical Leave Act and the California Family Rights Act and intend to apply and implement this Agreement so as to comply with both State and Federal Law.

5.5 Voting Leave – Consistent with the provisions of California law, Executive Level employees shall be granted sufficient time to vote during municipal, primary and general elections.

5.6 Military Leave – The City shall comply with all State and Federal requirements regarding military duty leave.

5.7 Sabbatical Leave is provided as a major means by which Executive Level employees may promote their professional competence and so improve the performance of the organization through continued learning through study, research, writing, and travel.

Executive Level employees shall receive eighty (80) hours of Sabbatical Leave at the completion of seven years of service, which shall be on the eighth anniversary of their appointment as an Executive Level employee. Executive Level employees shall also receive eighty (80) hours of Sabbatical Leave upon the completion of fourteen years of service, which shall be on the fifteenth anniversary of their appointment as an Executive Level employee.

Executive Level employees may request and take Sabbatical Leave at any time after Sabbatical Leave Time has accrued, subject to prior approval by the City Manager.

Sabbatical Leaves must be taken within one year of accrual of Sabbatical Leave Time.

Sabbatical Leaves must be taken as a single period of ten consecutive business days or two periods of five consecutive business days each.

Supplemental Leave – The City Manager may award up to 40 hours of Supplemental Leave to any Executive Level employee each year, based on extended hours of work, job performance or other circumstances. Supplemental leave must be used within one calendar year of the date awarded or it is lost.

5.8 Jury Leave – The City provides jury duty leave with pay for all Executive Level employees who are called upon to serve for court jury duty according to the following provisions:

An Executive Level employee called for jury duty shall immediately provide the City Manager with a copy of the jury summons. If the Executive Level employee is dismissed by the Court and three (3) hours or more remain in the workday, they are expected to report to work.

An Executive Level employee’s compensation for jury duty shall be limited to three months (63 workdays ). Executive Level employees whose jury service is in excess of three months (63 workdays ) may make a request to the City Manager or designee for continued payment. An Executive Level employee serving jury duty in excess of the above limit may use accrued unused vacation or other approved leave to continue pay.

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ARTICLE VII. SEPARATION
SECTION 1 – SEPARATION FROM CITY SERVICES

1.1 Separation Notice Payment – Executive level employees who have more than three ( 3) years of service and voluntarily separate from employment with the City and provide at least thirty (30) calendar days’ notice of separation shall receive a Separation Notice Payment. The Separation Notice Payment will be a sum equaling the most recent two (2) weeks' regular compensation received by the Executive Level employee, including longevity pay and all other monetary incentive compensation received immediately prior to the date of notice. Executive Level employees who separate as a result of medical or other retirement shall not be eligible to receive this benefit.

Executive Level employees who have more than three ( 3 ) years of service and are involuntarily separated from their employment with the City shall receive twelve (12) weeks’ separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Executive Level employee received while employed by the City.

1.2 Confidentiality – In the event of involuntary separation, the Parties agree that neither the City nor Executive Level employee shall, for a period of six (6) months, make any statement, orally, in writing or otherwise, regarding the reasons for or circumstances of termination, to any person or organization other than:

a) In the case of the City: its legal counsel and/or City Council. b) In the case of the Executive Level employee: to legal counsel and/or immediate family.

This provision shall expressly include communication to prospective future employers, unless otherwise required by law.

SECTION 2 – SAVINGS CLAUSE

2.1 The provisions of the Resolution are declared to be severable and if any article, section, subsection, sentence, clause or phrase contained herein shall for any reason be held invalid or unenforceable by a court of competent jurisdiction, such decision shall not affect the validity of the remaining articles, sections, subsections, sentences, clauses or phrases of this Resolution, but they shall remain in full force and effect. It is the intent of the City this Resolution stand notwithstanding the invalidity of any part hereof.

SECTION 3 - IMPLEMENTATION AND DURATION

3.1 Except as otherwise provided herein, this Pay and Benefits Plan shall be in full force and effect beginning July 1, 2025 and shall remain in full force and effect until amended, repealed or superseded by action of the City Council through June 30, 2027.

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EXHIBIT “A”

The salaries in Table 1 below include a 3% Cost of Living Adjustment (COLA), effective July 6, 2025 (FY 2025-2026), and a 3% COLA effective July 5, 2026 (FY 2026-2027).

Effective December 21, 2025, eligible employees covered under this pay plan shall receive a one-time non-PERSable payment of three percent (3.0%) of their total gross salary for the 2024- 25 fiscal year.

TABLE 1

FY 2025-2026

ANNUAL SALARY
TITLE GRADE STEP 1 STEP 6
Chief of Police 057 $195,339.65 $249,308.56
City Clerk 051 $123,097.29 $157,106.82
Finance Director 056 $180,870.39 $230,841.26
Parks & Recreation Director 054 $155,066.99 $197,909.24 Community Development Director 056 $180,870.39 $230,841.26 Public Works Director/City Engineer 057 $195,339.65 $249,308.56

FY 2026-2027

ANNUAL SALARY
TITLE GRADE STEP 1 STEP 6
Chief of Police 057 $201,199.83
7744
$256,787.81
City Clerk 051 $126,790.20 $161,820.02
Finance Director 056 $186,296.50 $237,766.49
Parks & Recreation Director 054 $159,718.99 $203,846.51 Community Development Director 056 $186,296.50 $237,766.49 Public Works Director/City Engineer 057 $201,199.83 $256,797.81

Note: Executive Level employees are positions in the Unclassified Service.

*Rates based on 1976 annual hours worked

Executive Level employees shall work the number of hours necessary and sufficient to professionally discharge the duties and assignments. Executive Level employees are granted discretion regarding the times they start and finish their workdays, as well as the days they work.

The City may from time to time require specific work start or finish times or both. Executive Level employees shall work a minimum of thirty-eight (38) hours per week, except when vacation, sick or other approved leave is taken.

The standard workweek shall be thirty-eight (38) hours per week, worked in units of nine (9- 1/2) hours per day Monday through Thursday in a seven (7) day workweek which runs Sunday at midnight through the following Saturday at 11:59 pm. 95 1

REVISED PAY & BENEFITS PLAN FOR

MID-MANAGEMENT EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2025 through June 30, 2027
City Council Resolution Nos. 25-059 and 25-XXX

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TABLE OF CONTENTS
ARTICLE I. TERMS ................................................................................................................. 3 SECTION 1 - DEFINITION OF TERMS ................................................................................. 3 ARTICLE II. COMPENSATION ............................................................................................. 4-7 SECTION 1 - PAY PLAN (Pay Plan Exhibit A – pg. 15) ...................................................... 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ............................... 4 SECTION 3 - OTHER PAY ADJUSTMENTS ......................................................................... 4 SECTION 4 - INCENTIVE PAY ............................................................................................... 4 SECTION 5 - UNIFORMS AND SAFETY EQUIPMENT .........................................................5 SECTION 6 - WORKING IN A HIGHER CLASSIFICATION ................................................... 5 SECTION 7 - EDUCATION REIMBURSEMENT .................................................................... 5 SECTION 8 - LONGEVITY PAY ............................................................................................. 6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ......................... 6 SECTION 10 - COMPENSATORY TIME OFF........................................................................ 6 SECTION 11 - EDUCATIONAL INCENTIVE PAY .................................................................... 6 SECTION 12 - COMPUTER LOAN PROGRAM ..................................................................... 7 SECTION 13 - DEFERRED COMPENSATION ..................................................................... 7 ARTICLE III. RETIREMENT BENEFITS .................................................................................. 7-8 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN .................. 7-8 ARTICLE IV. INSURANCE BENEFITS ................................................................................ 8-9 SECTION 1 - INSURANCE ..................................................................................................... 8-9 ARTICLE V. SICK LEAVE BENEFITS .................................................................................... 9 SECTION 1 - SICK LEAVE ACCRUAL PLAN ..................................................................... 9 ARTICLE VI. HOLIDAYS, VACATION, AND OTHER LEAVE BENEFITS ....................... 10-13 SECTION 1 – HOLIDAYS .................................................................................................... 10 SECTION 2 - VACATION ......................................................................................................11 SECTION 3 – WORKERS’ COMPENSATION..................................................................... 11 SECTION 4 - BEREAVEMENT LEAVE ................................................................................... 11 SECTION 5 - ADDITIONAL LEAVES ............................................................................. 11-13 ARTICLE VII. SEPARATION ..................................................................................................... 13 SECTION 1 - SEPARATION FROM CITY SERVICES ........................................................... 13 SECTION 2 - SAVINGS CLAUSE ......................................................................................... 14 SECTION 3 - IMPLEMENTATION AND DURATION ...........................................................14 *NOTE: ARTICLE II, SECTION 1 (Pay Plan- Exhibit A – Pg. 15) 97 3

ARTICLE I. TERMS
SECTION 1 - DEFINITION OF TERMS

1.1 The following terms, whenever used in the Plan, shall have the meaning set forth in this Section:

A. CITY: Shall mean the City of Hercules.

B. CITY MANAGER: Shall mean the City Manager or their designee.

C. DAYS: Shall mean calendar days except where working days are expressly specified.

D. EMPLOYEE: Shall mean individuals appointed to Mid- Management employee level positions by the City Manager.

E. FISCAL YEAR: Shall mean the 12 month period from July 1 through June 30.

F. PUBLIC EMPLOYEES’ PENSION REFORM ACT (PEPRA): Shall mean the California Public Employees’ Pension Reform Act of 2013, including AB 340 (Furutani, Chapter 296, Statutes of 2012) and AB 197 (Buchanan, Chapter 297, Statutes of 2012) and all subsequent amendments.

G. PAY PERIOD: Shall mean a two-week period, beginning Sunday at 12:00 a.m. through the following Saturday at 11:59 p.m. and equal to 76 hours, designated by the City Manager.

H. PERS: Shall mean the California Public Employees’ Retirement System (CalPERS).

I. PUBLIC AGENCY EXPERIENCE: Shall mean prior service in a government agency.

J. RETIREE: Shall mean a former employee of the City who has been granted and is receiving a regular service or disability retirement from PERS.

L. YEAR: Shall mean fiscal year, except where calendar year is expressly specified.

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ARTICLE II. COMPENSATION

SECTION 1 – PAY PLAN

1.1 Effective July 1, 2025, through June 30, 2027, the pay plan for Mid-Management Employees is set forth on Exhibit “A”, attached hereto.

1.2 Lunch and Break Periods - The time allowed for an unpaid lunch break shall be a minimum of thirty minutes and no more than one hour throughout the course of the workday.

Full-time employees who are scheduled to work eight or more hours in a day shall be permitted one fifteen minute paid rest period at approximately the middle of the morning, and another fifteen minute paid rest period at approximately the middle of the afternoon. Rest periods shall not be taken at the end of a workday to permit an employee to leave early, nor may rest periods be used at the beginning of a workday to allow an employee to report for work after their regular assigned starting time.

This Pay Plan supersedes all applicable State law and regulations governing meal periods and rest periods.

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

2.1 On the basis of the evaluation of a Mid-Management Employee’s performance, an employee shall be eligible for a pay rate advancement added to their base pay of an amount between zero and 10 percent, not to exceed the top of the salary range, effective at the beginning of the pay period following an employee’s anniversary date.

SECTION 3 - OTHER PAY ADJUSTMENTS

3.1 Emergency Premium Pay – In an emergency preparedness situation, as designated by the City Manager or designee, all non-exempt employees required to work in excess of their regular assigned shift shall receive regular overtime pay. All exempt employees required to work in excess of their regular assigned shift shall receive premium pay at the rate of two (2) times the employee's regular base rate of pay for all hours worked in excess of assigned shift.

SECTION 4 - INCENTIVE PAY

4.1 At the discretion of the Department Director and approval by the City Manager, employees may be awarded at any time during the fiscal year incentive pay not to exceed 5% for extraordinary job performance.

4.1 is suspended for the term of this Pay Plan.

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SECTION 5 - UNIFORMS AND SAFETY EQUIPMENT

5.1 When the City requires employees to wear a uniform including shirts, pants, vest, hats or other apparel the City will provide the uniform. The City will provide laundering of the uniform through a uniform service company at no cost to the employee.

5.2 The City will furnish all safety equipment that is required to perform the task or job at no cost to the employee.

5.3 The City will provide a reimbursement of up to $200.00 per fiscal year for one pair of safety shoes.

SECTION 6 - WORKING IN A HIGHER CLASSIFICATION

6.1 Eligible employees who are authorized in writing by the department head to work in a higher classification and salary range than their own and who are required to temporarily perform substantial duties and assume the responsibilities of the position will receive out of class pay. To be eligible for out of class pay, employees assigned to work in a higher classification must meet the minimum qualifications of the assigned position. Employees will be eligible for work in a higher classification on the first workday in a higher classification.

6.2 Compensation for work in a higher class shall be at either five percent (5%) above said employee’s' existing salary rate or the hourly rate equal to the minimum rate as provided in the salary range for the designated position, whichever is higher. Any out of class work for which premium compensation is provided requires advance written approval by the City Manager or designee.

6.3 Additional Duties pay of 5% for when an employee assumes limited duties of a higher classification as approved by the City Manager.

SECTION 7 - EDUCATION REIMBURSEMENT

7.1 Employees shall be eligible to receive up to $4,000 per fiscal year reimbursement of expenditures by the Employee for tuition, books, travel and any other costs associated with their successful completion of any professional or educational program approved by the City Manager. This benefit shall be funded at the rate of $30,000 per year and is available to Employees on a first come, first served basis. Once the total annual benefit amount of $30,000 is reached, the benefit is no longer available to any employee until the next fiscal year.

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6 SECTION 8 - LONGEVITY PAY

8.1 Employees are eligible to receive Longevity Pay based on number of years of service.

In addition to an employee’s base salary, exclusive of all premium and other pays, each employee shall receive Longevity Pay added to the employee’s base salary after the completion of:

10 years of service: $125 per month
14 years of service: $175 per month
16 years of service: $225 per month
25 years of service: $275 per month

8.2 The effective date of a Longevity Pay increase shall be the beginning of the pay period following the date of eligibility. The computation of Longevity Pay increases shall not be cumulative.

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

9.1 Upon retirement or separation from City employment, Employees shall receive cash out equivalent for any eligible unused leave balances. Separating Employees shall have the option of receiving cash out or depositing the unused leave balance into their 457 Deferred Compensation Plan, subject to Federal law plan limits.

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time Off (CTO) is normally not accrued for exempt employees, however, if an employee should have a CTO acc rual bala nce and there is a change in position or a carryover from other terms and conditions with the employer, after April 1, 2016, the CTO accrual balance will qualify as eligible for conversion to either the Employee’s 401(a) or 457(b) Plan. Any such conversion must occur within 30 days of appointment.

SECTION 11 - EDUCATIONAL INCENTIVE PAY

11.1 Upon approval of the City Manager, education incentive pay shall be paid in addition to regular pay when education is in addition to the minimum requirements of the job specifications in a related field. Proof of higher education must be from an accredited United States education institute and presented to the Human Resources Department for verification of degrees:

Associate’s Degree: $50 per month
Bachelor’s Degree: $100 per month
Master’s Degree $150 per month

Education pay shall be paid in 24 bi-weekly installments and shall be in addition to any other pay received under this Agreement.

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7 SECTION 12 - COMPUTER LOAN PROGRAM

12.1 To be eligible, employees must have completed their initial one year probation period with the City and must maintain a balance of up to 40 hours of vacation and/or compensatory time until the loan is paid in full. The house employees must maintain will vary depending on the amount borrowed.

12.2 Each employee is eligible to participate in the City of Hercules Computer Loan Program for Employee Purchase of a Personal Computer, tablet, software or hardware.

Maximum loan amount is $2,500 and may not be more than one loan outstanding at any time. No interest will be charged by the City on loans under this program.

SECTION 13 - DEFERRED COMPENSATION

13.1 457 Deferred Compensation Plan: All Employees may make voluntary contributions to the MissionSquare Retirement 457 Deferred Compensation Plan through payroll deduction subject to the limits, policies and conditions established by the MissionSquare Retirement and Federal Tax Laws.

13.2 401(a) Deferred Compensation Plan: In addition, effective October 1, 2025, all Mid Management Employees shall receive an employer contribution equivalent to 2.5% of their annual salary on a one-to-one match deposited into the MissionSquare Retirement 457 Deferred Compensation Plan.

ARTICLE III. RETIREMENT BENEFITS
SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN

1.1 The City agrees to provide all Employees with retirement benefits under the terms of its current Retirement Plan with CalPERS.

1.2 All sworn personnel members hired on or prior to December 11, 2011 shall receive PERS retirement benefits computed at the highest formula, to include final year benefit formula, received by any public safety bargaining unit within the City. Those sworn personnel hired after December 11, 2011 and prior to January 1, 2014 shall receive the PERS benefit formula of 3% @ 55.

1.3 Unrepresented non-public safety employees hired prior to January 1, 2013 will pay the 7% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

Unrepresented public safety employees hired prior to January 1, 2013 will pay the 9% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.4 Non-public safety Employees hired prior to January 1, 2014 will pay the 7% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Public Safety employees hired prior to January1, 2014 will pay the 9% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% 102

8 to be applied to the Employer’s CalPERS Contribution Rate.

1.5 The PERS benefit formula and percentages paid by any Employee will change for all newly hired Employees on or after January 1, 2014 who are not already in a PERS recognized retirement system, in accordance with AB 340, signed into law on September 12, 2012.

1.6 Sworn personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2.7% @57, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive three (3) year period. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.7 Non-public safety personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2%@ 62, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive three (3) year period. Effective October 21,2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

1.2 If an Employee elects no health coverage, and can demonstrate to the City, on an annual basis or any other time upon request, that the Employee has alternative health care coverage, the Employee shall be entitled to any one of the following options:

1. The City will pay 50% of the eligible contribution into the Employee's 457 Plan account; or

2. The City will pay to the Employee directly 50% of the eligible contribution in their paycheck effective the first day of the following month, provided all paperwork has been received by Human Resources; or

3. At the Employee's option, the City will pay a portion of the eligible contribution to increase the Employee's supplemental life insurance coverage and the Employee will receive the remainder of the eligible contribution under either option one or two above.

If an Employee's alternative health coverage is lost due to unforeseen circumstances, the Employee will upon request be covered by the City's health plan, subject to carrier approval.
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9 1.3 Dental/Vision Insurance – The City will pay for dental insurance premiums and vision insurance premiums for eligible mid-management employees and their eligible dependents.

1.4 Life Insurance and AD&D - The City agrees to provide employees $40,000 term life insurance and accidental death and dismemberment insurance at no cost to the Employee. Additional coverage on the same policy may be purchased by individual Employees through approved payroll deduction.

1.5 Short Term and Long Term Disability Insurance - Employees shall receive short term and long-term disability insurance consistent with the highest level of similar coverage received by any bargaining unit in the City, at no cost to the Employee.

1.6 Employee Assistance Plan - The City agrees to continue an Employee Assistance Program for all Employees. Individuals eligible for coverage include Mid-Management Employees and their household members. The term household members encompasses anyone living in the Employee's household and can include, as examples, spouse, domestic partners, grandparents, sister or grandchildren, and eligible dependents.

ARTICLE V. SICK LEAVE BENEFITS
SECTION 1 - SICK LEAVE ACCRUAL PLAN

1.1 The City shall provide paid sick leave benefits to all Employees which accrues at the rate of eight (8) hours per month. The maximum sick leave accrual for Employees is 2080 hours. If an Employee has 2080 hours (one year) of accrued unused sick leave, the Employee shall cease earning sick leave until such time as their unused balance falls below 2080 hours.

1.2 Sick leave is to be used primarily for illness, injury or medical appointments for the employee or an immediate family member which requires an employee to be absent from work. The immediate family of an employee is defined as: parents, step-parents, parents-in-law, spouse, domestic partner, child, step-child, brother, sister, grandparents, grandchildren, brother/sister-in-law, son/daughter-in-law, or legal guardian.

1.3 After three consecutive sick days the City may require an employee to submit a doctor's statement and/or other reasonable verification for the sick leave request.

1.4 Employees are not subject to sick leave accrual deduction for absences of less than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Employees to report absences due to sickness of less than one (1) day.

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10 ARTICLE VI. HOLIDAYS, VACATION, AND OTHER LEAVE BENEFITS SECTION 1 – HOLIDAYS

1.1 Employees shall receive 14 designated holidays per year to be observed during each Fiscal Year (July 1-June 30). Employees normally scheduled to work on those days will be given nine and a half (9.5) hours off with pay provided they are eligible as set forth below. Floating Holidays may not be carried forward from one fiscal year to the next and are not compensable at the time of separation from City service.

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veterans Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

Employees on approved vacation or sick leave shall not be charged for vacation or sick leave for the Holiday.

1.2 Additional Christmas Holidays - For the term of this Pay Plan and consistent with past practice, the majority of the City’s offices will continue to be closed during the Christmas week. In lieu of holiday pay, employees who were otherwise eligible for holiday pay described below can select to use any unused, accrued vacation, sick or compensatory time available in order to receive pay for these days. Alternatively, employees can choose to take unpaid leave during these days.

1.3 Pay for Working on a Designated Holiday – An employee who is required by the City to work on a day that is a designated holiday in Section 11.1 is observed shall be paid eight hours of Holiday pay and shall be paid for the hours actually worked on the Holiday at the rate of time and one-half (1½). In lieu of pay for the time worked on the designated Holiday, the employee may add the time worked on the Holiday to their Compensatory Time Off accrual at the rate of time and one-half (1½) times hours actually worked.

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11 SECTION 2 - VACATION

2.1 Except as otherwise provided in this Section, employees shall accrue vacation as follows:

YEARS OF SERVICE

COMPLETED
ANNUAL

ACCRUAL RATE
1 through 4 96 hours
5 through 9 120 hours
10 through 15 144 hours
16 through 19 160 hours
Beginning at 20 years 176 hours

2.2 Employees who reach 280 hours of accrued unused vacation shall cease earning any vacation until their vacation accrual falls below 280 hours.

2.3 Consistent with City policy employees may sell back up to 40 hours of their accrued vacation annually, one time during the fiscal year.

SECTION 3 – WORKERS’ COMPENSATION

3.1 When an employee is on a leave of absence due to a workers’ compensation claim all medical insurance will continue to be in force at no cost to the employee as long as the employee is on a City paid leave of absence.

SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive up to five (5) days of paid bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, step-parent, parents-in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sibling, brother/sister-in-law, legal guardian or with approval by Human Resources, a substitute family member for a person defined above.

4.2 At the discretion of the City Manager, or their designee, additional time may be taken by the Employee using their accrued leave.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

12 at least six (6) weeks in advance. Approval of the request may be with specific terms and conditions negotiated by the City Manager and the Employee.

Extension of Leaves – During the period of the Leave of Absence, an Employee may request that the leave be extended by submitting such a request in writing to the City Manager stating the reason for the extension. Such a request may be approved or disapproved by the City Manager as described in the above section. Under normal circumstances, no Leaves of Absence exceeding one (1) year will be granted.

5.2 Administrative Leave – Each Mid-Management employee shall receive 80 hours of Administrative leave annually on July 1st of each year. Should an employee terminate or be terminated from employment with the City a prorated formula at six and two thirds hours per month will be taken for each month the employee did not earn the administrative leave.

Mid-Managers are required to attend and participate in the regular and special meetings of the City Council, the various City Council appointed Sub-Committees, Commissions, Committees and Boards and work in excess of 40 hours per week.

If the leave is not used by June 30 of each year, the unused balance will not carry forward. Administrative Leave must be taken as time off and is not compensable upon termination.

New mid-management employees will earn Administrative Leave on a prorated basis during their probationary period at six and two thirds hours per month.

5.3 Pregnancy Disability Leave - An Employee disabled due to pregnancy may be entitled to a leave of absence for the period of disability up to three (3) months. Employees on Pregnancy Disability Leave may utilize accrued unused sick leave and vacation during the leave period.

Family and Medical Leave Act of 1993 – The parties acknowledge the applicability of the Family and Medical Leave Act and the California Family Rights Act and intend to apply and implement this Agreement so as to comply with both State and Federal Law.

5.5 Voting Leave – Consistent with the provisions of California law, Employees shall be granted sufficient time to vote during municipal, primary and general elections.

5.6 Military Leave – The City shall comply with all State and Federal requirements regarding military duty leave.

5.7 Sabbatical Leave is provided as a major means by which Exempt Employees may promote their professional competence and so improve the performance of the organization through continued learning through study, research, writing, and travel. 107

13 Employees shall receive eighty (80) hours of Sabbatical Leave at the completion of seven years of service, which shall be on the eighth anniversary of their appointment as an Employee. Employees shall also receive eighty (80) hours of Sabbatical Leave upon the completion of fourteen years of service, which shall be on the fifteenth anniversary of their appointment as a Employee.

Employees may request and take Sabbatical Leave at any time after Sabbatical Leave Time has accrued, subject to prior approval by the City Manager. Sabbatical Leaves must be taken within one year of accrual of Sabbatical Leave Time. Sabbatical Leaves must be taken as a single period of ten consecutive business days or two periods of five consecutive business days each.

Supplemental Leave – The City Manager may award up to 40 hours of Supplemental Leave to any Employee each year, based on extended hours of work, job performance or other circumstances. Supplemental leave must be used within one calendar year of the date awarded or it is lost.

5.8 Jury Leave – The City provides jury duty leave with pay for all Employees who are called upon to serve for court jury duty according to the following provisions:

An Employee called for jury duty shall immediately provide the City Manager with a copy of the jury summons. If the Employee is dismissed by the Court and three (3) hours or more remain in the workday, they are expected to report to work.

An employee’s compensation for jury duty shall be limited to three months (63 workdays).

Employees whose jury service is in excess of three months (63 workdays) may make a request to the City Manager or designee for continued payment. An Employee serving jury duty in excess of the above limit may use accrued unused vacation or other approved leave to continue pay.

ARTICLE VII. SEPARATION
SECTION 1 - SEPARATION FROM CITY SERVICES

1.1 Separation Notice Payment – Employees who have more than three (3) years of service and voluntarily separated from employment with the City and provide at least thirty (30) calendar days’ notice of separation shall receive a Separation Notice Payment. The Separation Notice Payment will be a sum equaling the most recent two (2) weeks' regular compensation received by the Employee, including longevity pay and all other monetary incentive compensation received immediately prior to the date of notice. Employees who separate as a result of medical or other retirement shall not be eligible to receive this benefit.

Exempt Employees who have more than three (3) years of service and are involuntarily separated from their employment with the City shall receive twelve (12) weeks’ separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

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14 Non-Exempt Employees who have more than three ( 3 ) years of service and are involuntarily separated from their employment with the City shall receive six ( 6 ) weeks’ separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

1.2 Confidentiality – In the event of involuntary separation, the Parties agree that neither the City nor Employee shall, for a period of six (6) months, make any statement, orally, in writing or otherwise, regarding the reasons for or circumstances of termination, to any person or organization other than:

a) In the case of the City: its legal counsel and/or City Council. b) In the case of the Employee: to legal counsel and/or immediate family.

This provision shall expressly include communication to prospective future employers, unless otherwise required by law.

SECTION 2 - SAVINGS CLAUSE

SECTION 3 - IMPLEMENTATION AND DURATION

3.1 Except as otherwise provided herein, this Pay and Benefits Plan shall be in full force and effect beginning July 1, 2025, and shall remain in full force and effect until amended, repealed or superseded by action of the City Council through June 30, 2027.
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15 EXHIBIT “A”

The salaries in Table 1 below include a 3% Cost of Living Adjustment (COLA), effective July 6, 2025, and a 3%COLA effective July 5, 2026.

TABLE 1

FY 2025-2026

ANNUAL SALARY
TITLE GRADE STEP 1 STEP 6
Recreation Manager 248 $98,484.63 $125,693.95
Senior Accountant 249 $103,408.22 $131,978.81
Public Works Superintendent 253 $125,693.75 $160,420.17

FY 2026-2027

ANNUAL SALARY
TITLE GRADE STEP 1 STEP 6
Recreation Manager 248 $101,439.16 $129,646.76
Senior Accountant 249 $106,510.46 $135,938.17
Public Works Superintendent 253 $129,464.56 $165,232.77

Note: Mid-Management employees are positions in the Unclassified Service.

*Rates based on 1976 annual hours worked

Mid-Management employees shall be thirty-eight (38) hours per week, worked in units of nine (9-1/2) hours per day in four (4) consecutive days in a seven (7) day workweek which runs Sunday at midnight through the following Saturday at 11:59 p.m. This supersedes the previous practice of a 40-hour week. Modified work schedules may be considered on a case-by-case basis and must be approved in advance by the City Manager, based on operational needs and the nature of the position.

When practical or feasible an employee will be given no less than thirty (30) days written notice in advance of a change in their assigned regular work week or shift schedule. The assignment of work weeks and shifts will be based on seniority provided the employee in the department has the minimum qualifications to perform the work. 110
1 REVISED PAY & BENEFITS PLAN FOR

NON-REPRESENTED EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2025 through June 30, 2027
City Council Resolution Nos. 25-059 and 25-XXX

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2 TABLE OF CONTENTS
ARTICLE I. TERMS ................................................................................................................. 3 SECTION 1 - DEFINITION OF TERMS ................................................................................. 3 ARTICLE II. COMPENSATION ................................................................................................ 4 SECTION 1 - PAY PLAN (Pay Plan Exhibit A – pgs. 18-19) .................................................... 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ................................ 4 SECTION 3 - OTHER PAY ADJUSTMENTS ......................................................................... 4 SECTION 4 - VEHICLE ASSIGNMENT ................................................................................. 4 SECTION 5 - UNIFORM ALLOWANCE ................................................................................. 4-5 SECTION 6 – WORKING IN A HIGHER CLASSIFICATION ................................................. 5 SECTION 7 - EDUCATION REIMBURSEMENT ...................................................................... 5 SECTION 8 - LONGEVITY PAY ............................................................................................ 6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ........................ 6 SECTION 10 - COMPENSATORY TIME OFF ....................................................................... 6 SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR) ............................................................................................................................ 7-8 SECTION 12 - COMPUTER LOAN PROGRAM .................................................................... 8 SECTION 13 – DEFERRED COMPENSATION ................................................................. 8-9 SECTION 14 – EDUCATION INCENTIVE PAY ................................................................ 9 ARTICLE III. RETIREMENT BENEFITS ................................................................................ 10 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN ................... 10 ARTICLE IV. INSURANCE BENEFITS ................................................................................. 11 SECTION 1 - INSURANCE ...................................................................................................... 11 ARTICLE V. SICK LEAVE BENEFITS .................................................................................. 12 SECTION 1 - SICK LEAVE ACCRUAL PLAN ...................................................................... 12 ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS ........................ 12-16 SECTION 1 - HOLIDAYS ................................................................................................ 12-13 SECTION 2 - VACATION ...................................................................................................... 13 SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN .............................................. 13-14 SECTION 4 - BEREAVEMENT LEAVE................................................................................... 14 SECTION 5 - ADDITIONAL LEAVES ................................................................................. 14-16 ARTICLE VII. SEPARATION ............................................................................................ 16-17 SECTION 1 – SEPARATION FROM CITY SERVICES .......................................................... 16 SECTION 2 – SAVINGS CLAUSE ....................................................................................... 17 SECTION 3 - IMPLEMENTATION AND DURATION ........................................................... 17 *NOTE: ARTICLE II, SECTION 1 (Pay Plan- Exhibit A
– Pgs. 18-19)

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3 ARTICLE I. TERMS

SECTION 1 - DEFINITION OF TERMS

1.1 The following terms, whenever used in the Plan, shall have the meaning set forth in this Section:

A. CITY: Shall mean the City of Hercules.

B. CITY MANAGER: Shall mean the City Manager or their designee.

C. DAYS: Shall mean calendar days except where working days are expressly specified.

D. EMPLOYEE: Shall mean individuals appointed to Non-Represented Employee level positions by the City Manager.

E. FISCAL YEAR: Shall mean the 12-month period from July 1 through June 30.

F. PAY PERIOD: Shall mean a two-week period, beginning Sunday at 12:00 a.m. through the following Saturday at 11:59 p.m. and equal to 76 hours, designated by the City Manager.

H. PERS: Shall mean the California Public Employees’ Retirement System (CalPERS).

I. PUBLIC AGENCY EXPERIENCE: Shall mean prior service in a government agency.

J. RETIREE: Shall mean a former employee of the City who has been granted and is receiving a regular service or disability retirement from PERS.

L. YEAR: Shall mean fiscal year, except where calendar year is expressly specified. 113

4 ARTICLE II. COMPENSATION

SECTION 1 - PAY PLAN

1.1 Effective July 1, 2025, through June 30, 2027, the pay plan for Non-Represented Employees is set forth on Exhibit “A”, attached hereto.

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

SECTION 3 - OTHER PAY ADJUSTMENTS

3.1 Bonus Pay – As recognition of a specific, non-permanent work effort or in recognition of ongoing job performance which has consistently exceeded the highest standards, Bonus Pay may be awarded to an Employee by the City Manager. The range of this Bonus Pay may be from 2% to 10% of the Employee's annual salary and be paid in one lump sum payment. Employees have the option of depositing any such bonus payment into their 457 Deferred Compensation Plan or 401(a) Plan, subject to plan limits.

3.1 is suspended for the term of this Pay Plan.

3.2 Emergency Premium Pay – In an emergency preparedness situation, as designated by the City Manager or designee, all non-exempt employees required to work in excess of their regular assigned shift shall receive regular overtime pay as stated in Article

1.2. All exempt employees required to work in excess of their regular assigned shift shall receive premium pay at the rate of two (2) times the employee's regular base rate of pay for all hours worked in excess of assigned shift.

SECTION 4 - VEHICLE ASSIGNMENT

4.1 The City shall provide an unmarked vehicle to the Police Department Command staff.

The Commanders shall adhere to all City policies and procedures when utilizing a city owned vehicle. The Chief of Police or the City Manager may at any time revoke the vehicle privilege if a violation is identified.

SECTION 5 - UNIFORM ALLOWANCE

5.1 The City will compensate each safety employee $75.00 per month ($900 annually) as 114

5 payment for such maintenance and replacement. Such compensation shall be made semi-annually during the second pay period in January and the second pay period in July. Payment shall be made by separate check and not as part of a regular paycheck.

Employees shall become eligible to receive the first semi-annual payment following their first anniversary date. With respect to the time between the employee’s first anniversary date and the semi-annual payment, the allowance will be prorated on a monthly basis with an employee having to work more than sixteen (16) days to receive payment for that month. The uniform allowance is considered a prospective payment and there shall be no payment or reimbursement upon separation from City service.

SECTION 6 – WORKING IN A HIGHER CLASSIFICATION

6.2 Compensation for work in a higher class shall be at either five percent (5%) above said employees' existing salary rate or the hourly rate equal to the minimum rate as provided in the salary range for the designated position, whichever is higher. Any out of class work for which premium compensation is provided requires advance written approval by the City Manager or designee.

6.3 Non-Represented Employees who are working in a higher classification that is outside the scope of this Agreement shall be covered by the general terms and conditions of employment of the higher classification. All wages, including sick, vacation, comp time and holiday shall be paid at the out of class pay rate.

6.4 Additional Duties pay of 5% for when an employee assumes limited duties of a higher classification as approved by the City Manager.

SECTION 7 - EDUCATION REIMBURSEMENT

Once the total annual benefit amount of $30,000 is reached, the benefit is no longer available to any Employee until the next fiscal year.
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6 SECTION 8 - LONGEVITY PAY

8.1 Non-sworn employees are eligible to receive Longevity Pay based on number of years of service. In addition to an employee’s base salary, exclusive of all premium and other pays, each employee shall receive Longevity Pay added to the employee’s base salary after the completion of:

10 years of service: $125 per month
14 years of service: $175 per month
16 years of service: $225 per month
25 years of service: $275 per month

Sworn employees are eligible to receive Longevity Pay calculated as a percentage of their salary and the City will make the payments in 26 bi-weekly installments. The calculations, based on total sworn public service time, will be as follows:

At 5 years of service: 2% of salary
At 10 years of service: 4% of salary
At 15 years of service: 6% of salary
At 20 years of service: 8% of salary
At 25 years of service: 10% of salary

8.2 The effective date of a Longevity Pay increase shall be the beginning of the pay period following the date of eligibility. The computation of Longevity Pay increases shall not be cumulative.

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time Off (CTO) is normally not accrued for exempt employees, however, if an Employee should have a CTO accrual balance and there is a change in position or a carryover from other terms and conditions with the employer, after April 1, 2016, the CTO accrual balance will qualify as eligible for conversion to either the Employee’s 401(a) or 457(b) Plan. Any such conversion must occur within 30 days of appointment.

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7 SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR)

The City will provide an optional monetary allowance for safety employees and non- safety employees. An annual three percent (3 %) adjustment is paid on January 1st of each year to employees who retire as regulated by the Public Employee’s Retirement System. To be eligible for the optional monies, an employee must retire as follows:

2. Disability Retirement: Employees who retire with a disability retirement are not required to be a certain age but must have at least twenty (20) years of service with the City.

Years of
Service
Amount of sick leave hours on the books
on the day employee separates service
Percentage of Optional
Money Available
10 480 50
11 528 55
12 576 60
13 624 65
14 672 70
15 720 75
16 768 80
17 846 85
18 864 90
19 912 95
20 960 100
21 960 100
22 960 100
23 960 100
24 960 100
25 No minimum amount required 100

11.4 Retiree Reaches Age 65 – The City will pay a portion of the optional money to a retiree until the retiree reaches age 65, upon which they are required to enroll in Medicare. At 117

8 that time, the optional money will drop to an amount equivalent to the Kaiser Supplemental to Medicare rate through PERS. The retiree will be eligible for the same percentage of the Supplemental Optional Monies as they were eligible for under the Basic Optional Monies plan. Employees who are not eligible for Medicare must provide the City proof that they are not eligible for Medicare, either through their own employment history or their spouses and after providing such proof, the city will continue to pay the percentage of the Basic Optional Monies Plan. If proof is not provided, the City will automatically begin paying the Supplemental Optional Monies Plan percentages.

This benefit, which is effective January 1, 2001, is expected to last into perpetuity. The funds being established for this program may not be used by the City or Employees for any purpose other than what is expressly stated in this section of the Pay Plan. If in the future the City and Employees mutually agree to end or modify this benefit, they can do so only for active employees. Any retiree who is currently receiving this benefit will continue to receive the benefit as stated in the Pay Plan that was in effect at the time of their retirement. Conversely, if the City and Employees increase this benefit, they can do so only for active employees and retiree benefits will remain the same as they were when they retired.

The City shall provide the Employees an annual statement of prior year balances in the medical retirement fund no later than December 31st of each year.

11.5 Payment will be made on a bi-annual basis. The optional money allowance for the months of January through June will be made in the third week in July; July through December will be paid the third week in January of each year. Checks will be mailed to the address on file. Supplemental Optional Money payments are subject to applicable Federal and State Income Tax regulations.

SECTION 12 - COMPUTER LOAN PROGRAM

12.1 To be eligible Employees must have completed their initial one-year probation period with the City and must maintain a balance of up to 40 hours of vacation and/or compensatory time until the loan is paid in full. The hours an employee must maintain will vary depending on the amount borrowed.

12.2 Each employee is eligible to participate in the City of Hercules Loan Program for Employee Purchase of a Personal Computer, tablet, software or hardware. The maximum loan amount is $2,500 and may not be more than one loan outstanding at any time. No interest will be charged by the City on loans under this program.

SECTION 13 – DEFERRED COMPENSATION

13.1 401(a) Deferred Compensation Plan: Police Command staff shall receive an employer contribution equivalent to 4% of their salary from the City, deposited into the City sponsored 401(a) Deferred Compensation Plan, consistent with the limits, policies and conditions established by MissionSquare Retirement and Federal Tax Laws.

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9 13.2 In addition, effective October 1, 2025, exempt classifications under the Non- Represented Pay and Benefit Plan shall receive 2.5% of their salary on a one-to-one match deposited into the City sponsored 401(a) Deferred Compensation Plan, and non-exempt classifications under the Non- Represented Pay and Benefit Plan shall receive 1% of their annual salary on a one-to-one match deposited into the City sponsored 401(a) Deferred Compensation Plan, consistent with the limits, policies and conditions established by the MissionSquare Retirement and Federal Tax Laws.

13.3 457 Deferred Compensation Plan: All Employees may make voluntary contributions to the MissionSquare Retirement 457 Deferred Compensation Plan through payroll deduction subject to the limits, policies and conditions established by the MissionSquare Retirement and Federal Tax laws.

SECTION 14 – EDUCATION INCENTIVE PAY

14.1 Upon approval of the City Manager, education incentive pay shall be paid in addition to regular pay when education is in addition to the minimum requirements of the job specifications in a related field. Proof of higher education must be from an accredited United States educational institution, and proof of an Advanced POST certificate must be issued by the California Commission on Peace Officer Standards and Training (California POST). All documentation shall be presented to the Human Resources Department for verification.

Associate’s Degree: $50 per month
Bachelor’s Degree: $100 per month
Advanced POST Certificate $125 per month (sworn only)
Master’s Degree $150 per month

Education pay shall be paid in 24 bi-weekly installments and shall be in addition to any other pay received under this Agreement.

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10 ARTICLE III. RETIREMENT BENEFITS
SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN

1.1 The City agrees to provide all Employees with retirement benefits under the terms of its current Retirement Plan with CalPERS.

1.2 All sworn personnel members hired on or prior to December 11, 2011 shall receive PERS retirement benefits computed at the highest formula, to include final year benefit formula, received by any public safety bargaining unit within the City. Those sworn personnel hired after December 11, 2011, and prior to January 1, 2014 shall receive the PERS benefit formula of 3%@55.

1.3 Unrepresented non-public safety employees hired prior to January 1, 2013, will pay the 7% employee percentage PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Unrepresented public safety employees hired prior to January 1, 2013, will pay the 9% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.4 Non-public safety Employees hired prior to January 1, 2014, will pay the 7% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

Public safety Employees hired prior to January 1, 2014, will pay the 9% employee percentage of PERS contributions. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.6 Sworn personnel hired on or after January 1, 2014, shall receive the PERS benefit formula of 2.7%@57, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive three (3) year. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.7 Non-public safety personnel hired on or after January 1, 2014, shall receive the PERS benefit formula of 2%@62, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive three (3) year period. October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.
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11 ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

The City’s contribution towards the employee’s health premium will equal the Kaiser rate for the prior calendar year plus the first 3% of the rate increase at each level of coverage. The employee shall contribute a maximum of up to 3% of the rate increase and the City will be responsible for rate increases above 6%.

1.1 If an Employee elects no health coverage, and can demonstrate to the City, on an annual basis or any other time upon request, that the Employee has alternative health care coverage, the Employee shall be entitled to any one of the following options:

A. The City will pay 50% of the eligible contribution into the Employee's 457 Plan account; or

B. The City will pay to the Employee directly 50% of the eligible contribution in cash; or

C. At the Employee's option, the City will pay a portion of the eligible contribution to increase the Employee's supplemental life insurance coverage and t he Employee will receive the remainder of the eligible contribution under either option one or two above.

If an Employee's alternative health coverage is lost due to unforeseen circumstances, the Employee will upon request be covered by the City's health plan, subject to carrier approval.

1.2 Dental Insurance - For dental coverage the City shall pay 100 percent of the monthly premium through Delta Dental Plan of California for each Employee and qualified dependents as current practice dictates per fiscal year for each member. The City shall provide orthodontia coverage 50 percent with a lifetime maximum of $4,000 for each eligible family member.

1.3 Life Insurance and AD&D - The City agrees to provide sworn personnel $50,000 and non-sworn employees $40,000 term life insurance and accidental death and dismemberment insurance at no cost to the Employee. Additional coverage on the same policy may be purchased by individual Employees through approved payroll deduction.

1.4 Short Term and Long-Term Disability Insurance - Employees shall receive short term and long-term disability insurance consistent with the highest level of similar coverage received by any bargaining unit in the City, at no cost to the Employee.

1.5 Employee Assistance Plan - The City agrees to continue an Employee Assistance Program for all Employees. Individuals eligible for coverage include Non-Represented Employees and their household members. The term household members encompass anyone living in the Employee's household and can include, as examples, spouse, domestic partners, grandparents, sister or grandchildren, and eligible dependent 121

12 ARTICLE V. SICK LEAVE BENEFITS
SECTION 1 - SICK LEAVE ACCRUAL PLAN

1.2 Sick leave is to be used primarily for illness, injury or medical appointments for the employee or an immediate family member which requires an employee to be absent from work. The immediate family of an employee is defined as: parents, stepparents, parents-in-law, spouse, domestic partner, child, step-child, brother, sister, grandparents, grandchildren, brother/sister-in-law, son/daughter-in-law, or legal guardian.

1.3 After three consecutive sick days the City may require an employee to submit a doctor's statement and/or other reasonable verification for the sick leave request.

1.4 Exempt employees are not subject to sick leave accrual deduction for absences of less than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Employees to report absences due to sickness of less than one (1) day.

ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS SECTION 1 - HOLIDAYS

1.1 Employees shall receive 14 designated holidays per year to be observed during each Fiscal Year (July 1-June 30). Employees normally scheduled to work on those days will be given nine and one half (9.5) hours off with pay provided they are eligible as set forth below. Floating Holidays may not be carried forward from one fiscal year to the next and are not compensable at the time of separation from City service.

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veterans Day

9. Thanksgiving

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13 10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

Employees on approved vacation or sick leave shall not be charged for vacation or sick leave for the Holiday.

1.1 Additional Christmas Holidays - For the term of this Pay Plan and consistent with past practice, the majority of the City’s offices will continue to be closed during the Christmas week. In lieu of holiday pay, employees who were otherwise eligible for holiday pay described below can select to use any unused, accrued vacation, sick or compensatory time available in order to receive pay for these days. Alternatively, employees can choose to take unpaid leave during these days.

SECTION 2 – VACATION

Except as otherwise provided in this Section, employees shall accrue vacation as follows:

YEARS OF SERVICE

COMPLETED
ANNUAL

ACCRUAL RATE
1 through 4 96 hours
5 through 9 120 hours
10 through 15 144 hours
16 through 19 160 hours
Beginning at 20 years 176 hours

2.1 Employees who reach 280 hours of accrued unused vacation shall cease earning any vacation until their vacation accrual falls below 280 hours.

2.2 On June 30 of each year the City shall automatically convert to cash all Employees' vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual Employee's MissionSquare Retiree Health Savings Program or into a member’s previously established City-sponsored investment account.

2.3 Consistent with City policy employees may sell back up to 40 hours of their accrued vacation annually, one time during the fiscal year.

SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN

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14 3.2 The City shall automatically deposit the following percentage of the employee's salary

3.3 into the individual Employee's MissionSquare Retiree Health Savings program. This benefit is paid from the Employee's salary and not by the City.

 Exempt Employees will contribute 2%

3.4 Exempt Employees will be permitted to cash out and deposit unused leave accruals in their Retiree Healthcare Savings Plan as described below.

On June 30 of each year the City shall automatically convert to cash up to 40 hours of each Exempt Employee's vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual’s MissionSquare Retiree Health Savings Program.

On June 30 of each year the City shall automatically convert to cash all up to 40 hours of an Exempt Employee's unused Executive Leave and deposit the cash balance into the individual’s MissionSquare Retiree Health Savings program.

SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive up to five (5) days of paid bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, stepparent, parents-in-law, grandparent, child, stepchild, grandchild, spouse, domestic partner, legal dependent, sibling, brother/sister-in-law, legal guardian or with approval by Human Resources, a substitute family member for a person defined above.

At the discretion of the City Manager, or their designee, additional time may be taken by the Employee using their accrued leave.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

Requesting Leave – Upon request, the City Manager may grant an Employee an unpaid leave of absence not to exceed three (3) months. Such leave shall be discretionary and based upon the needs of the City. Whenever possible, such requests shall be submitted at least six (6) weeks in advance. Approval of the request may be with specific terms and conditions negotiated by the City Manager and the Employee.

5.2 Executive Leave – Exempt Employees shall receive 80 hours of Executive Leave on July 1 of each year as flexible compensation for the irregular duty periods, work in excess of 40 hours per week, and unpredictable demands on Employees’ time.

Executive Leave must be used prior to June 30 of the fiscal year it was awarded, or it is lost.

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15 On June 30 of each year the City shall automatically convert to cash up to 40 hours of Employees unused Executive Leave and deposit the cash balance into the individual Employee’s MissionSquare Retiree Health Savings program.

New Employees shall receive the following bank of hours of Executive Leave based on hire date as follows:

Date of Employment Credit for Executive Leave
July 1 through September 30 60 hours
Oct 1 through December 31 40 hours
Jan 1 through March 31 20 hours
April 1 through June 30 0 hours

5.5 Voting Leave – Consistent with the provisions of California law, Employees shall be granted sufficient time to vote during municipal, primary and general elections.

5.6 Military Leave – The City shall comply with all State and Federal requirements regarding military duty leave.

Employees shall receive eighty (80) hours of Sabbatical Leave at the completion of seven years of service, which shall be on the eighth anniversary of their appointment as an Employee. Employees shall also receive eighty (80) hours of Sabbatical Leave upon the completion of fourteen years of service, which shall be on the fifteenth anniversary of their appointment as an Employee.

Supplemental Leave – The City Manager may award up to 40 hours of Supplemental Leave to any Employee each year, based on extended hours of work, job performance
or other circumstances. Supplemental leave must be used within one calendar year of the date awarded or it is lost.

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16 5.8 Jury Leave – The City provides jury duty leave with pay for all Employees who are called upon to serve for court jury duty according to the following provisions:

An Employee’s compensation for jury duty shall be limited to three (3) months (63 workdays). Employees whose jury service is in excess of three months (63 workdays) may make a request to the City Manager or designee for continued payment. An Employee serving jury duty in excess of the above limit may use accrued unused vacation or other approved leave to continue pay.

ARTICLE VII. SEPARATION
SECTION 1 – SEPARATION FROM CITY SERVICES

Non-Exempt Employees who have more than three (3) years of service and are involuntarily separated from their employment with the City shall receive six (6) weeks’ separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

a) In the case of the City: its legal counsel and/or City Council. b) In the case of the Employee: to legal counsel and/or immediate family.

This provision shall expressly include communication to prospective future employers, unless otherwise required by law.
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17 SECTION 2 – SAVINGS CLAUSE

2.1 The provisions of the Resolution are declared to be severable and if any article, section, subsection, sentence, clause or phrase contained herein shall for any reason be held invalid or unenforceable by a court of competent jurisdiction, such decision shall not affect the validity of the remaining articles, sections, subsections, sentences, clauses or phrases of this Resolution, but they shall remain in full force and effect. It is the intent of the City this Resolution stands notwithstanding the invalidity of any part hereof.

SECTION 3 - IMPLEMENTATION AND DURATION

3.1 Except as otherwise provided herein, this Pay and Benefits Plan shall be in full force and effect beginning to July 1, 2025 and shall remain in full force and effect until amended, repealed or superseded by action of the City Council through June 30, 2027.

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18 EXHIBIT A”

The salaries in Table 1 below include a 3% Cost of Living Adjustment (COLA), effective July 6, 2025, and a 3% COLA effective July 5, 2026.

TABLE 1

FY 2025-2026

ANNUAL SALARY
TITLE GRADE STEP 1 STEP 6
Accountant 048 $97,718.63 $124,716.49
Accounting Technician II 046 $83,777.85 $106,924.52
Administrative Specialist 045 $77,571.83 $99,003.52
Human Resources Administrator 046 $83,777.85 $106,924.52 Human Resources Analyst 047 $90,479.78 $115,477.69
Human Resources Manager 050 $113,978.84 $145,469.16
Human Resources Technician 045 $77,571.83 $99,003.52
Police Commander 055 $167,472.52 $213,742.14

FY 2026-2027

ANNUAL SALARY
TITLE GRADE STEP 1 STEP 6
Accountant 048 $100,650.18 $128,457.98
Accounting Technician II 046 $86,291.18 $110,132.25
Administrative Specialist 045 $79,898.98

$101,973.62
Human Resources Administrator 046 $86,291.18

$110,132.25
Human Resources Analyst 047 $93,194.17 $118,942.02
Human Resources Manager 050 $117,398.20

$149,833.23
Human Resources Technician 045 $79,898.98

$101,973.62
Police Commander 055 $172,496.69

$220,154.40

Note: Non-Represented employees are positions in the Unclassified Service.

*Rates based on 1976 annual hours worked

Non-Represented employees shall work the number of hours necessary and sufficient to professionally discharge the duties and assignments. Exempt Non- Represented employees shall work a minimum of thirty-eight (38) hours per week, except when vacation, sick or other approved leave is taken. Exempt Non- 128

19 Represented employees are granted discretion regarding the times they start and finish their workdays, as well as the days they work. However, the City may from time to time require specific start or finish work times or both.

Non-exempt employees are expected to work a consistent schedule aligned with the City’s standard work week of thirty- eight (38) hours. Weekly schedules should not fluctuate without operational necessity or supervisor approval. The City does not permit flexing hours across multiple workweeks to offset overtime. All hours worked in excess of thirty-eight (38) in a designated workweek shall be compensated as overtime, in accordance with this pay plan. Modified work schedules may be considered on a case-by-case basis and must be approved in advance by the City Manager, based on operational needs and the nature of the position.

Overtime for full time non- exempt employees will begin after 38 hours. 129

DISCUSSION AND/OR ACTION ITEM

AGENDA ITEMS

1. 25-317
130

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of December 9, 2025

TO: Mayor and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Eibleis Melendez, City Clerk

SUBJECT: Commission and Committee Appointments

RECOMMENDED ACTION:

1. Consider making appointments to the Hercules Commissions, Regional Boards and Committees to fill vacancies and expired terms.

2. Following Council appointments, d irect Staff to prepare and publish the local appointments list pursuant to Government Code 54972

DISCUSSION:

The City’s Commissions (listed below) have seats with a term expiration of December 31, 2025. The City maintains an open recruitment for applicants to fill the seats. The application deadline for Planning Commission, Finance Commission, Community Library Services Commission and the Contra Costa County Mosquito and Vector Control was October 31, 2025. The vacancies were advertised on the City’s website, the Parks and Recreation Activity guide , the local newspaper and pushed through social media platforms.

The City Council held a Special Meeting to conduct interviews on Tuesday, November 18, 2025. Incumbent commissioners and committee members who reapply for their positions are not required to provide interviews.

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Local Commissions

Planning Commission – Two (2) terms ending December 2025.

The Planning Commission meets the first and third Mondays of every month at 7 p.m.

The Commission is advisory to the Council and has statutory duties imposed by State law. Five (5) applications were received. The two Commissioners with expiring terms are: Hector Rubio and Robert Schaufenbil.

Applicants that interviewed for the Planning Commission are: Romanch Mistry, Dennis Esselsagoe, Nicole Torres.

Finance Commission – Two (2) term ending December 2025.

The Finance Commission meets bi -monthly on the third Wednesday at 7 p.m. The Commission is advisory to the Council. Four (4) applications were received. The two Commissioner with expiring terms are: Dennis Esselsagoe and Rupinder Sandhu.

Applicants that interviewed for Finance Commission are: Sandra Casteneda and Neeru Giri.

Community & Library Services Commission – One (1) term ending December 2025 and, One (1) Student Commissioner term ending December 2025.

The Community and Library Services Commission meets on the second Monday of every month at 7:00 p.m. The Commission is advisory to the Council. Five (5) applications were received. The Commissioners with expiring terms are: Evangelia Ward -Jackson and Student Commissioner Monique Hernandez.

Applicants that interviewed for Student Commissioner are: Rachit Paudel and Sofia Seiden.

Applicants that interviewed for Community & Library Services Commission are: Wylendia Eastman and Bhaskar Dawadi.

Regional Boards and Committees:

Contra Costa County Mosquito and Vector Control Board Vacant The Board meets in Concord on the second Monday at 7 p.m. every other month.

Trustees also serve on various subcommittees , which require attendance at additional meetings. One (1) application was received. The Board Member with the expiring term is Damian Wong.

One application was submitted by Mariati Messinger. No other applications were received for this committee. Staf f is recommending that Mariati Messinger be appointed to the board.

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General Plan Advisory Committee:

When interviews were conducted, the Council asked applicants if they would be interested in being considered for the General Plan Advisory Committee (GPAC) if they were not selected for a Commission. Several applicants showed interest. Staff will return to the City Council before the start of the General Plan process in spring 2026 to seek Council appointments to the GPAC.

FISCAL IMPACT:

Pursuant to Ordinance 519, each member of the Planning Commission receives a salary of fifty dollars ($50.00) for attendance at a regular scheduled meeting of the Planning Commission. No compensation will be provided for non -attendance at a regular scheduled meeting, attendance at special meetings, or when a regular scheduled meeting has been canceled.

ATTACHMENTS:

None.
133

CITY COUNCIL REORGANIZATION

AGENDA ITEMS

1. 25-315

2.
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PROCLAMATION

COMMENDING THE LEADERSHIP OF MAYOR DION BAILEY AND

HIS AND SERVICE TO THE CITY OF HERCULES

WHEREAS, Dion Bailey was elected to the Hercules City Council in November 2018. As part of the annual City Council reorganization in 2021, he was appointed to serve as Mayor.

Mayor Bailey concludes his second appointment as Mayor of the City of Hercules on December 9, 2025.

WHEREAS, Mayor Bailey successfully advanced the City through critical community development priorities including the implementation of the Housing Element which furthers the development of the Hercules Bayfront and supports the City’s Fair Housing commitments in the City’s adopted and certified 6th Cycle Housing Element; and

WHEREAS, he led the City through the Marin Clean Energy (MCE) Transition, reducing greenhouse gas emissions and bringing clean energy resources to our community and contributing to a cleaner California; and

WHEREAS, Mayor Bailey worked diligently with City Council to approve the FY 2026- 2027 Budget and addressed the Victoria by the Bay LLAD annual operating deficit through a ballot measure that will secure repayment of approximately $700,000 to the General Fund within 10 years; and

WHEREAS, under his tenure, advanced Capital Improvement Plan projects to improve the experience of Hercules residents and the community as they utilize the City’s streets, trails, parks and open spaces including initiation of the John Muir Parkway Traffic Calming Improvements, Refugio Valley Park Picnic Area shade structures , Foxboro Park Basketball Court and Playground Improvements, The Refugio Valley Park lake dredging project, the Bay Trail Retaining Wall Repair project, and the Falcon Way Roadway Improvements; and

WHEREAS, Mayor Bailey promoted transparency and open communication by engaging the public in meaningful dialogue through multiple Town Halls of Public Safety; and

WHEREAS, Mayor Bailey fostered collaborations with local organizations for the continued provision of high-quality events for the Hercules community including the inaugural Lunar New Year Parade, Hercules Cultural Festival, National Night Out and Movies in the Park, Bayfront Run and Festival, Trunk or Treat, and the 125th Anniversary and Holiday Tree Lighting; and

WHEREAS, he represented the City throughout regional and statewide boards including at the Contra Costa Mayors Conference , the West County Mayors and Supervisors’ Association; West Contra Costa Transit Authority (WestCAT) and West Contra Costa Transportation Advisory Committee (WCCTAC) , ensuring that the voice of Hercules was heard; and

WHEREAS, Mayor Bailey ’s service and dedication have led advancements in the City’s growth with much to look forward to in its near future, keeping Hercules a great place to live, work, and play.

NOW THEREFORE BE IT PROCLAIMED that I, Chris Kelley, Vice Mayor of the City of Hercules, on behalf of the entire City Council, with gratitude, do hereby commend Mayor Dion Bailey for his excellent service and steadfast dedication to the City of Hercules.

In witness whereof, I hereunto set my hand and ca use the seal of the City of Hercules to be affixed this 9th day of December 2025.

Chris Kelley, Vice Mayor
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CITY COUNCIL REORGANIZATION

AGENDA ITEMS

2. 25-320
136

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of December 9, 2025

TO: Mayor and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Eibleis Melendez, City Clerk

SUBJECT: Selection of Mayor and Vice Mayor

RECOMMENDED ACTION:

City Council to Nominate and Appoint a Mayor and Vice-Mayor.

BACKGROUND:

Section 4.8 of the Council Rules of Procedure provides for the procedure of selecting the Mayor and Vice-Mayor.

4.8 City Council Leadership and Expectations: It is the policy and practice of the City Council that each year the City Council shall select a Mayor and Vice Mayor. For every election cycle, the City Council Members receiving the highest and the second highest number of votes will be identified. These City Council Members shall be selected by the City Council to rotate into the position of Mayor during the third and fourth year of their terms respectively. The Council Member rece iving the highest number of votes shall serve as Mayor during the third year of his/her term and the Council Member receiving the second highest number of votes shall serve in the fourth year of his/her term. The herein selection process shall be followed in all instances unless a Council Member is denied the honor of serving as Mayor or Vice Mayor pursuant to subsection 4.8.4.

In the 2022 election, Dion Bailey received the most votes (5,784), followed by Chris Kelley with 4,246 votes. According to the City Council’s Rules of Procedure, Dion Bailey served as Mayor in 2025, while Chris Kelley was Vice Mayor. As per Council protocol, the Vice Mayor is usually next in line to become Mayor.

In the 2024 election, Alex Walker -Griffin received the highest number of votes (7,286), closely followed by Dilli Bhattarai with 7,038 votes. According to the Council’s rules, Alex Walker-Griffin is next in line to serve as Vice Mayor.
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FISCAL IMPACT:

There is no fiscal impact associated with this item.

ATTACHMENTS:

1. Council Rules of Procedure

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1 CITY COUNCIL RULES OF PROCEDURE

TABLE OF CONTENTS

1. Authority

2. General Rules

3. Types of Meetings

4. Chairperson and Duties

5. Order of Business and Agenda

6. Ordinances

7. Creation of Committees, Boards and Commissions

8. Citizens’ Rights

9. Regional Appointments

10. Amendments

11. Rules of Conduct

12. Legislative Process and Taking Positions
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2 COUNCIL RULES OF PROCEDURE

HISTORY OF ADOPTION AND AMENDMENTS

Resolution No. Date Amendment

Resolution No. 17-068 9/26/17 Adoption of Rules after Review of all Sections

Resolution No. 18-004 1/23/18 Amendment to Section 3.7

Resolution No. 18-017 4/10/18 Added Section 12
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3 1. Authority

1.1 General Law City: General Law of the State of California provides that the City of Hercules City Council may determine its own rules of procedure. The following set of rules shall be in effect upon their adoption by the Council and until such time as they are amended or new rules adopted in the manner provided by these rules.

1.1 Related Documents: This procedures manual provides a summary of important aspects of City Council activities. However, it cannot incorporate all material and information necessary for undertaking the business of a city council. Many other laws, policies, plans, and documents exist which guide the City Council. Related documents:

1.2.1 Hercules Municipal Code

1.2.2 Hercules Conflict of Interest Resolution

1.2.3 Hercules Ethics Policy Resolution

1.2.4 Hercules Anti-Nepotism Ordinance

1.2.5 Hercules Zoning Ordinance

1.2.6 Hercules General Plan and Specific Plans

1.2.7 California Constitution and Laws

1.2.8 California Open Meeting Laws (The Ralph M. Brown Act)

1.2.9 California Political Reform Act

1.2.10 United States Constitution and Laws

2. General Rules

2.1 Meetings to be Public : All official meetings of the Council shall be open to the public, except where State or local l aw allows Closed Sessions for certain limited topics. The minutes from open session shall be open to public inspection in accordance with the provisions of the State of California Open Meetings Law (Ralph M. Brown Act). Recordings of City Council Meetings shall be retained as per the requirements of the City’s adopted Retention Schedule.

2.2. Quorum : Three members of the Council shall constitute a quorum and be necessary for the transaction of business. If a quorum is not present, those in attendance will be named and they shall adjourn to a later time.

2.3 Compelling Attendance : City Councilmembers are expected to attend all scheduled meetings. If absence is unavoidable, the City Manager, City Clerk, or Mayor shall be notified.

2.4 Teleconferencing: Pursuant to the Ralph M. Brown Act provisions pertaining to meeting requirements as amended from time to time, remote attendance may be allowed in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by roll call. At least a quorum of the Council must participate from teleconferencing locations within the city’s jurisdiction. Each teleconference location must be identified in the notice and agenda of the meeting. Agendas must be posted at 141

4 each teleconference location, and each location must be accessible to the public. The agenda must provide the opportunity for the public to address the legislative body directly at each teleconference location.

2.5 Council Meeting Minutes: Minutes of all proceedings of the Council shall be kept by the City Clerk and shall be entered in a book constituting part of the official record of the Council.

2.6 Ordinances: An ordinance is limited to one topic, which shall be clearly stated in its title, except for an appropriations ordinance, an ordinance adopting or embodying an administrative or governmental code, or an ordinance adopting a code of ordinances.

2.7 City Manager: The City Manager shall attend all meetings of the Council unless excused by the Mayor with the consent of the Council. The City Manager shall designate at his/her discretion, staff representatives to Subcommittees and Commission meetings.

2.8 City Attorney: The City Attorney shall attend all regular mee tings of the Council unless excused by the Mayor with the consent of the Council and shall attend special meetings and Council workshops upon request. The City Attorney shall also attend meetings of the City Commissions at the request of the City Council or on an as -needed basis. The City Attorney shall act as the Council’s parliamentarian.

The City Attorney shall render legal opinions, either written or oral, on questions of law.

Individual members of the City Council may consult with the City Attorney regarding legal issues pertaining to City business, and may request written legal advice regarding a potential conflict of interest which may affect that council member’s ability to participate in an upcoming decision.

All City Attorney responses to council member legal inquiries requiring a substantial commitment of City Attorney time must be provided in writing to all members of the City Council. A ll staff legal inquiries requiring a substantial commitment of City Attorney time must be authorized by the City Manager.

The City Attorney should do no work on a policy proposal from one or more members of the Council that would require a substantial commitment of City Attorney time when the consideration of such a proposal has not been discussed by the full Council.

2.9 City Clerk : The City Clerk or his/her delegate shall attend all meetings of the Council unless excused by the City Manager and shall keep the official minutes and perform such other duties as may be requested by the Council.

2.10 Officers and Employees: Department Directors of the City, when there is pertinent business from their departments on the Council agenda, shall attend such Council meetings upon direction from the City Manager.

2.11 Rules of Order: The latest authorized edition of “Roberts Rules of Order” shall be adopted and govern the proceedings of Council Meetings where they are not in conflict with these rules. 142

5 2.12 Rules of Debate:

2.12.1 Mayor May Debate: The Mayor may debate from the chair, subject only to such limitations of debate as are imposed on all members, and shall not be deprived of any of the rights and privileges as a member of the Council by reason of that person serving as Mayor.

2.12.2 Getting the Floor - Improper References to be avoided : A member desi ring to speak shall address the Chair, who is in most instances the Mayor, and upon recognition by the presiding officer, shall confine comments to the question under debate. Subject to the discretion of the Chair, the order for Council comment is for the Council Members to be recognized first, followed by the Vice Mayor, and lastly, the Mayor.

2.12.3 Interruptions : A member, once recognized by the chair, shall not be interrupted when speaking unless it is to call a member to order, or as herein otherwise provided. If a member, while speaking, were called to order, that member shall cease speaking until the question of order is determined, and, if in order, the member shall be permitted to proceed.

2.12.4 Motion to Reconsider: A motion to reconsider any action taken by the Council may be made either during the same session, or at a recessed or adjourned session thereof. Such motion must be made and seconded by one of the prevailing sides, and may be made at any time and have precedence over all other motions or while a member has the floor; it shall be debatable.

Nothing herein shall be construed to prevent the Council or the City Manager or City Attorney from reconsidering at a subsequent meeting an action previously taken by the Council, upon a showing of changed circumstances or on the basis of new information, as long as the matter is properly agendized for discussion.

3. Types of Meetings

3.1 Regular Meeting : The Council shall meet in the Council Chambers for Regular and Adjourned meetings. Regular Council Meetings are to commence at 7:00 p.m., on the second and fourth Tuesday of each month, unless otherwise specified at least two (2) weeks in advance.

No Council meeting will be held in the event that a regular meeting of the Council falls on a City observed/recognized holiday.

3.2 Special Meetings: Special meetings may be called by the Mayor or by a majority of the members of the Council. The call for a special meeting shall be filed with the City Clerk in written form, which should be si gned by the Mayor or those members calling for a special meeting except that an announcement of a special meeting during any regular meeting at which all members are present shall be sufficient notice of such special meeting. The call for a special meeting shall specify the day, the hour, and the location of the special meeting, shall list the subject or subjects to be considered, and shall be delivered to each member of the Council, to each media outlet requesting notice, and posted on the City’s local Internet Web site. It is the policy of the City of Hercules that when possible, 72 hour notice be provided for special 143

6 meetings but in no event shall notice be less than 24 hours. Only such business may be transacted at a special meeting as may be listed in the call for said meeting or an incident thereto.

3.3 Emergency Meetings: An emergency meeting may be called pursuant to the requirements of the Brown Act as amended from time to time, when a majority of the legislative body determines that an emergency situation exists. At least one hour prior to the meeting, telephonic notice must be provided to all Council Members as well as all media outlets, which have requested that they receive notice of special meetings called pursuant to Government Code Section 54956.5, except in the case of a “dire emergency” as defined in California Government Code Sec. 54956.5(a)(2).

Emergency meetings may be held in closed session as the Government Code allows.

3.4 Adjourned Meetings: Any meeting of the Council may be adj ourned to a later date and time, provided that no adjournment shall be for a longer period than until the next Regular Meeting.

3.5 Workshops : The Council may meet informally in Workshops (open to the public), at the call of the Mayor or a majority of th e Council. Any workshop shall be noticed and conducted in the same manner as a R egular Council meeting. A workshop is for discussion only; no action can be taken by the Council.

3.6 Closed Sessions: Closed Sessions or closed meetings may only be held in ac cordance with the exceptions to open meeting requirements contained in the provisions of the Ralph M. Brown Act. Topics that may be discussed include: (1) personnel matters, (2) c onsideration of price and terms of payment related to the acquisition of property for public purposes or the sale or lease of public property, (3) potential or pending litigation in which the City has an interest.

3.7 Adjournment of Meetings: All regular City Council Meetings shall end no later than 11:30 p.m. with no new business beginning after 11:00 p.m. except that Future Agenda Item requests may be made and discussed after 11:00 p.m. An Agenda item which has commenced consideration before 11:00 p.m. shall be completed prior to adjournment. Upon completion of that item, the meeting shall be adjourned. Any matter appearing on the Agenda of a meeting which is adjourned prior to being considered will be placed on the Agenda of the next regular meeting.

4. Chairperson and Duties

4.1 Chairperson: The Chair of City Council meetings shall be the Mayor and in his/her absence, the Vice Mayor. In the absence of both the Mayor and the Vice Mayor, the Council Member with seniority based on continuous service shall act as the temporary Chair. City Council S ub- committees and Commissions shall elect a Chair and Vice Chair annually.

4.2 Call to Order : The Mayor shall call the meetings of the Council to order or by the Vice Mayor in his/her absence. In the absence of both, the senior Council Member based on continuous service who shall act as the temporary Chair shall call the meeting to order.

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7 4.3 Preservation of Order : The Mayor shall preserve order and decorum among Council Members; prevent attacks on personalities or the impugning of members’ motives, and confine members in debate to the question under discussion.

4.4 Points of Order: By tradition, the Mayor speaks last during discussion of an agenda item.

The Mayor shall determine all points of order, subject to the right of any member to request a vote of the entire City Council on the questions whether the determination of the Mayor should be sustained.

4.5 Questions to be stated: The Mayor shall re- state all questions submitted for a vote and announce the result. A roll call vote shall be taken upon the request of any member.

4.6 Substitution for Chairperson: The Mayor may call on the Vice Mayor to temporarily chair the meeting to cover a temporary absence. Such substitution should not continue beyond adjournment.

4.7 Rights of Council to Discipline: A deliberate bod y has the inherent right to make and enforce its own rules and laws , including rules providing for the discipline of a member of the deliberative body.

The City Council shall have a right to discipline, admonish, and censure a member where a standard majority of the Council finds that actions of a member are detrimental to the City of Hercules. Such discipline, after the Council duly notices and publicly conducts a hearing, can include admonishment and in more serious cases, public censure. As a rule, the City Council has no right to go beyond what is necessary for its self-protection.

4.8 City Council Leadership and Expectations : It is the policy and practice of the City Council that each year the City Council shall select a Mayor and Vice Mayor. For every election cycle, the City Council Members receiving the highest and the second highest number of votes will be identified. These City Council Members shall be selected by the City Council to rotate into the position of Mayor during the third and fourth year of their terms respectively. The Council Member receiving the highest number of votes shall serve as Mayor during the third year of his/her term and the Council Member receiving the second highest number of votes shall serve in the fourth year of his/her term. The herein selection process shall be followed in all instances unless a Council Member is denied the honor of serving as Mayor or Vice Mayor pursuant to subsection 4.8.4.

4.8.1 Inability to Serve as Mayor or Vice Mayor: In the event of a death or removal from office, the City Council shall determine who shall serve as the Mayor or Vice Mayor for the term vacated based upon the rotation described in 4.8 above.

4.8.2 Appointment of Vice Mayor to Mayor: Upon completion of term as Vice Mayor, City Council shall appoint the Vice Mayor as Mayor for a term of one (1) year.

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8 4.8.3 Declining Position of Mayor or Vice Mayor : If a Council Member declines to accept the position of Mayor or Vice Mayor pursuant to the selection process in this Section

4.8, then the City Clerk will request alternative nominations for Mayor and/or Vice Mayor from the Council. A Council Member nominated by this process must receive confirmation by a majority of the Council Members to serve in the capacity of Mayor or Vice Mayor.

4.8.4 Vote of No Confidence: A Council Member may be denied the honor of serving as Mayor or Vice Mayor by the Council upon a unanimous vote of no confidence by the rest of the Council based on a serious offense or violation of the law that reflects negatively on t he City and its residents.

4.8.5 Mayor’s Duties: The Mayor shall be the official head of the City for all ceremonial purposes and shall be the presiding officer at City Council meetings. The Mayor shall assume his/her duties immediately upon the election of the City Council officers at the City Council’s reorganization meeting

4.8.6 Mayor’s Powers: In presiding at a City Council meeting, the Mayor shall facilitate and guide the meeting, preserve order and decorum, and ensure that the meeting runs smoothly, fairly and in accordance with these Rules and Procedures. The Mayor shall exercise the power to limit the time of any person speaking from the floor consistent with the Council’s Rules, state questions coming before the City Council, announce its decisi on on all subjects and decide all questions of order, subject, however, to an appeal to the City Council, as a whole. In the event of an appeal to the City Council as a whole, a majority vote shall govern and conclusively determine questions of order. The Mayor may make motions, vote or abstain on all motions. The Mayor, or if the Mayor is unavailable, the Vice -Mayor, shall sign all ordinances, resolutions and other documents adopted and approved by the City Council, unless the City Council designates other wise. Traditionally, the Mayor has also been assigned by the City Council to consult and coordinate with the City Manager in the development of agendas for meetings of the City Council. The scope of such review focuses on the timing of business items and the volume of business that can be considered at any one meeting. Such review does not allow for a unilateral unlimited delay of items to be considered by the Council or the introduction of new items not otherwise part of the Council’s identified priorities or staff’s work plan. The staff maintains a “tentative” Council Calendar that identifies when matters will likely be considered at future meetings.

5. Order of Business and Agenda

5.1 Order of Business : Shall be as in the agenda prepared by City Cler k, in substantial compliance with the following forms:

CITY COUNCIL AGENDA

I. CLOSED SESSION– CALL TO ORDER – ROLL CALL

II. PUBLIC COMMUNICATIONS – CLOSED SESSION AGENDA ITEMS 146

9 III. CONVENE INTO CLOSED SESSION

IV. REGULAR MEETING - RECONVENE TO OPEN SESSION – ROLL CALL

V. REPORT ON ACTION TAKEN IN CLOSED SESSION

VI. PLEDGE OF ALLEGIANCE

VII. MOMENT OF SILENCE

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

IX. AGENDA ADDITIONS/DELETIONS

X. PUBLIC COMMUNICATIONS

XI. PUBLIC HEARINGS

XII. C ONSENT CALENDAR

XIII. DISCUSSION AND/OR ACTION ITEMS

XIV. PUBLIC COMMUNICATIONS

XV. CITY COUNCIL AND CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE

REPORTS, AND FUTURE AGENDA ITEMS

XVI. ADJOURNMENT

5.2 Agenda : The City Clerk shall as contained in the Agenda prepare the order of business of each meeting. The Agenda shall be a listing by topic of subjects to be considered by the Council, and shall be delivered to members of the Council prior to the meeting to which it pertains, and within the time frame established by the Brown Act.

An item may be placed on a Council meeting agenda by any of the following methods:

(1) A Council Member may request an item be considered on a future agenda and, upon agreement of a majority of the Council, staff will prepare a staff report if formal Council action is required. Council Members may make this request during a meeting under Section XV. The process involves two steps: initial consideration of the request by the full Council and, if a majority agrees, the matter is then scheduled for further consideration on an upcoming meeting agenda, or placed on the Council’s pending items list with no specific date set.

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10 (2) By the City Manager

(3) By the City Attorney

The Agenda Committee composed of the Mayor, City Manager, City Attorney, and City Clerk shall meet bi-weekly to plan the scheduling and order of the agenda for future Council meetings.

5.3 Presentation by Members of Council : The Council shall have time to deliberate when the Mayor or any Council Member brings before the Council any business that he/she feels is appropriate for Council deliberation. These matters need not be specifically listed on the Agenda, but formal action on such matters shall be deferred until a subsequent Council meeting.

Immediate action may be taken upon determination by a majority vote of the Council if the issue qualifies as an “emergency situation” as defined in the Ralph M. Brown Act.

5.4 Process for Addressing Agenda Action Items before the City Council

• Mayor reads the agenda item
• Staff presents their report
• Council questions staff
• Public Comments are heard (if a public hearing is required, the public hearing will be opened, public comments taken, and the public hearing closed.) • Council discusses item
• A motion is made and seconded
• Final Council discussion
• Council votes or provides direction to staff

5.5 Reading of Minutes : Minutes belong to the City Council/Board of Directors. Unless a member of the Council requests a reading of the minutes of a Council meeting, such minutes may be approved without reading if the City Clerk previously furnished each member with a copy thereof. On Consent Calendar, approval of minutes shall be by a standard majority vote and items can be pulled for discussion and reinserted or pulled for discussion and a separate vote taken.

5.6 Process for Requesting Changes to the Minutes: Requests for non- material changes and challenges to material points should be directed to the City Manager or appropriate staff after the minutes have been pulled for discussion pursuant to Section 5.5. Challenges to material points should be presented to the City Manager and the City Clerk shall review the recording of the meeting in question prior to the next r egularly scheduled meeting where the results of the review will be reported by the City Manager. Action items cannot be rescinded, but can be pulled at the meeting for further discussion and direction.
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11 6. Ordinances

6.1 Effective Date:

Pursuant to California Government Code Sec. 36937, ordinances take effect 30 days after their final passage. An ordinance takes effect immediately, if it is an ordinance:

(a) Relating to an election.

(b) For the immediate preservation of the public peace, health or safety, containing a declaration of the facts constituting the urgency, and is passed by a four-fifths vote of the council.

(d) Related to taxes for the usual and current expenses of the city.

(e) Covered by particular provisions of law prescribing the manner of its passage and adoption.

6.2 Reading by Title Only : Upon being introduced, each proposed ordinance shall be read by title only, with further reading waived unless any member of the Council request s a full reading of the ordinance.

6.3 Majority Vote Required : Resolutions, orders for the payment of money, and all ordinances require a recorded majority vote of the total membership of the Council, pursuant to Government Code Section 36936. A motion, or any other proposition may be adopted by a majority voting on the issue except as otherwise specified by City Ordinance or State Statutes. When any vote is called, each Council Member shall respond “yes (aye),” “no”, “abstain”, or “pass”. Any Council Member who responds, “pass” will be given the opportunity at the end of the roll call to change their vote. Any “pass” response not changed shall be recorded as an abstention. A Council Member shall recuse himself or herself from a vote if required to do so by State conflict of interest laws, pursuant to the process provided under state law.

6.4 Requests for Preparation of Ordinances or Issuance of Legal Opinions: Any member of the City Council, with the approval of a majority of the Council, may request the City Manager to place the proposed adoption of an ordinance or resolution on the City Council agenda for discussion purposes. The City Attorney shall review proposed ordinances and resolutions for form and provide legal advice prior to and during discussion, consideration, and adoption by the City Council.

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12 All ordinances and resolutions prepared by the City Attorney shall be provided to the City Manager, who shall distribute them to all members of the City Council so that they may be fully informed of the status of City affairs.

7. Creation of Committees, Boards and Commissions

7.1 Citizen Committees, Boards and Commissions : The Council may create committees, boards, sub- committees and commissions to assist in the conduct of the operation of the City government with such duties as the Council may specify which are consistent with the City Code.

7.2 Membership and Selections: Membership and selection of members shall be as provided by the Council if not specified by the City Code. Any committee, board, or commission so created shall cease to exist upon the accomplishment of the special purpose for which it was created, or when abolished by a majority vote of the Council. No committee so appointed shall have powers other than advisory to t he Council or to the City Manager, except as otherwise specified by the City Code.

7.3 Removal of Members of Boards and Commissions : The Council may remove any member of any board or commission which it has created or as created by the City Code by a vote of at least a majority of the Council.

7.4 Subc ommittees - Operation of City Council Subc ommittees: The City Council shall utilize the subcommittee process to assist the work of staff and to conduct preliminary policy evaluation for purpose of recommendation to the full City Council. Such subc ommittee shall have no authority to resolve and act on policy issues and shall not act as a committee of the whole Council. With the exception of urgency items and personnel issues, notice of a scheduled subcommittee meeting shall be posted not less than 72 hours prior to the scheduled subcommittee meeting. Such notice shall include the date, time, location and item to be discussed. In addition, the subc ommittee shall cause a summary of the discussion held to be provided to all Council Members and appropriate staff. Any formal recommendation of the subcommittee to the full Council shall be in writing. A Council subcommittee is considered a standing committee subject to open meeting requirements, unless it meets the “ad hoc committee” exception under the Brown Act.

8. Citizens’ Rights

8.1 Public Comment: Any person desiring to address the Council, Commission, Subcommittee or other dul y established body shall first present a speaker's card to the Chair and shal l be recognized by the Chair. No person, other than members of the Council and the person having the floor, shall be permitted to enter into any discussion, either directly or through the members of the Council. No questions shall be asked the Council Members, except through the Mayor or presiding officer.

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13 8.2 Time Limits on Speakers: Disruptive Conduct: The Mayor or presiding officer may establish reasonable limits on the amount of time allocated for public comment on particular issues and for each i ndividual speaker. In addition, the Mayor or presiding officer may rule a speaker to be out of order if that speaker engages in disorderly conduct, which disrupts, disturbs or otherwise impedes the orderly conduct of City Council business by, among other things: a) uttering threatening or abusive language , b) speaking in excess of the time limits established by the Mayor or presiding officer, or c) repeatedly attempting to enter into discussion with staff, Council Members, or other members of the public.

8.3 Written Communications: Interested parties, or their authorized representatives, may address the Council by written communication in regard to any matter concerning the City’s business or over which the Council has control at any time by direct mail, email, or by addressing the City Clerk, who will distribute copies to the Council Members.

9. Regional Appointments

9.1 Appointments to Regional Committees: In December of each year, the Mayor shall review the appointments to all regional committees and make appointments, as necessary, at the Council’s first meeting in January of each year. The Mayor shall consult with members of the Council to discuss their availability to participate in various regional committees.

9.2 Appointments to City Subc ommittees: In December of each year, the Mayor shall review appointments to all City Council subcommittees and make appointments, as necessary, at the Council’s first meeting in January of each year. The Mayor shall consult with members of the Council to discuss their availability to participate in City Council subcommittees.

10. Amendments

10.1 Amendment of These Rules: These rules may be amended, or new rules adopted, by a majority vote of all members of the Council, provided that the proposed amendments or new rules shall have been introduced into the record at a prior Council meeting.

11. Rules of Conduct

11.1 Council M embers should be prepared for all meetings by reading and reviewing the material provided to them.

11.2 M embers of the City Council should be aware that all information covered in Closed Session is confidential and not for public discussion.

11.3 Council Members are encouraged to set up appointments with the City Manager, Department Heads and staff, if possible. The Non- Interference Clause, Section 2 -3.1-5 of the Municipal Code should always be considered when working with staff at City Hall.

151

14 11.4 Council M embers conduct when attending meetings, as a representative of the City of Hercules, should always reflect the highest standards.

11.5 Members of the City Council should remember that they are representing the City of Hercules when attending events, not just themselves.

11.6 Council M embers should be cognizant of the funds allocated to them within the City’s budget and not use more than their allocated amount for trips and events so that other member’s allocations will not be impacted.

11.7 In addition to the Rules of Conduct herein, Council Members shall follow the requirements of City’s Ethics Policy, adopted May 28, 2013, as Re solution No. 13- 051, attached hereto and incorporated herein by reference.

12. Legislative Process and Taking Positions

12.1 Limitations on resources and staffing constrain the City’s level of involvement in state legislative matters, initiatives and ballot measures.

12.2 In consideration of the limitations on resources and staffing, the City Council shall not consider or take positions on legislation, ballot measures, or issues of interest or concern that would not result in a direct tangible benefit to Hercules.

12.3 The City Manager or City Attorney may identify legislation or issues of direct local importance, impact, or benefit, or where the City of Hercules taking a position would be inordinately influential such as when a local legislative repres entative is the author or co-author of a measure, which in his or her opinion necessitates or warrants the City taking a position. In these limited instances, the City Manager or City Attorney may author a letter to be signed by the Mayor or Vice Mayor, as appropriate. The City Council shall be copied on any correspondence initiated through this process.

12.4 Matters may still be considered by the City Council as a whole to express an official position of the City upon request of the City Manager or City Attorney or as part of the process for placing matters on the Council agenda by the City Council specified in Section 5.2.

12.5 Individual City Council members may author letters supporting or opposing legislation, ballot measures, initiatives, or other issues of interest using City letterhead in their individual capacity, in which case language must be included that clearly states the correspondence does not reflect the official position of the City or the City Council as a whole.

Attachments:

1. Resolution No. 13-051 Ethics Policy
152

DISCUSSION AND/OR ACTION ITEM

AGENDA ITEMS

1. 25-319
153

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of December 9, 2025

TO: Mayor and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Eibleis Melendez, City Clerk

SUBJECT: City Council Regular Meeting Dates for 2026

RECOMMENDED ACTION:

Staff recommends that the Council review the schedule of City Council Regular Meeting Dates in 2026 and consider canceling one or both regular meetings in August.

DISCUSSION:

The City Council traditionally goes dark for one Council meeting in August, and more recently, it has gone dark for both meetings of the month to accommodate vacations. The second meetings in November and December are usually canceled if they fall on holiday weeks.

For 2026, August meetings are scheduled for August 11th and August 25th. The November 24th meeting is on Tuesday, during the Thanksgiving holiday week. City Offices will be closed on November 25th and November 26th. The December 22nd meeting falls on the Christmas Holiday, with City Offices closed December 23 through January 1st.

Attached is a draft of the 2026 Calendar showing all City Council and Commission meeting dates, as well as dates when City Offices are closed for holidays.

FISCAL IMPACT OF RECOMMENDATION:

There is no fiscal impact associated with this item.

ATTACHMENTS:

1. Calendar
154
January 2026

S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

April 2026

S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30

July 2026

S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31

October 2026

S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

February 2026

S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28

May 2026

S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 August 2026

S M T W T F S
1 2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31

November 2026

S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

March 2026

S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31

June 2026

S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30

September 2026

S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30

December 2026

S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

2026
City of Hercules Meeting
Schedule
January
1: New Year's Day
19: Martin Luther King Jr. Day
February
16: Presidents Day
May
25: Memorial Day
June
18: Juneteenth (observed on Thursday)
July
2: Independence Day (observed on
Thursday)
September
7: Labor Day
November
11: Veterans' Day
26: Thanksgiving
25: Day After Thanksgiving (observed on
Wednesday)
December
24: Christmas Eve
23: Christmas Day (observed on
Wednesday)
City Offices are open Monday-Thursday.

Dates noted in red are dates offices
are closed.

Regular City Meetings
City Council
Community & Library Services
Commission
Finance Commission
Planning Commission
155

Hercules City CouncilDecember 9, 2025

Hercules City Council
December 9, 2025