Hermosa Beach City Council
August 26, 2025

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except for the month of December, and the annual pancake breakfast fundraiser event on a Friday, Saturday, and Sunday in October, and for no other purpose without the written consent of the CITY. HBWC shall, at the approval of this Agreement, provide the CITY with a schedule of any additional reservation requests that fall within the terms of the Agreement, and approval of such reservation requests shall be subject to availability of the Facility. b. HBWC may not assign or sublease all or any portion of the Facility.

CARE AND MAINTENANCE OF FACILITY.
a. HBWC understands that the Facility is being rented in as-is condition. HBWC shall be responsible for repairs caused by HBWC’s use and wear and tear. b. HBWC may request maintenance from the CITY, to be approved or denied based on scope and necessity. Request shall be made through the CITY website or Go Hermosa app.
c. HBWC will immediately report all vandalism to the CITY designated liaison upon discovery.
d. HBWC confirms its acknowledgement that all CITY properties are smoke-free facilities.
e. HBWC shall not mark, drill, or deface any walls, ceilings, floors, wood, or iron work. f. HBWC shall remove refuse upon the completion of their scheduled Facility use. g. HBWC shall be responsible for all drain cleaning and plumbing repairs to sinks resulting from food preparation or dishwashing.
h. HBWC confirms its acknowledgment that no signs or awnings shall be erected or maintained upon or attached to the outside of the Facility or placed in any windows.
i. HBWC agrees to keep and maintain the Facility in good condition and to return to CITY the Facility upon completion of daily use in the same condition as when HBWC took possession of the Facility excepting reasonable wear and tear and does promise to pay CITY upon demand the reasonable sums to repair the premises in the event of a violation of this provision. j. HBWC is prohibited from making any alterations or performing any construction whatsoever to the Facility.

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k. HBWC shall provide emergency contact information for the party responsible for HBWC should the CITY require immediate correspondence. Contact may occur at any time.
l. HBWC agrees to inform the City immediately of any and all identified potential safety hazards and risks associated with the Facility.

RULES, REGULATIONS and ORDINANCES.
a. HBWC agrees to comply strictly with all applicable laws and the Clark Building Use Policy, which outlines the rules and regulations adopted by the City Council, attached hereto as Exhibit B and incorporated herein by reference.

INSURANCE.
a. HBWC shall obtain and maintain at all times during the term of this Agreement a Certificate of Insurance providing personal injury and property damage liability insurance naming CITY its officers, employees, and agents as additional insured with a minimum coverage of $2 million combined single limit coverage. Insurance is to be placed with insurers with a current AM Best’s rating of no less than A: VII.

Said insurance shall not be canceled or altered without thirty (30) days’ notice in writing to CITY.
b. HBWC insurers shall be primarily responsible for all liability resulting from or arising out of the performance of this Agreement, and CITY and their insurers shall not be required to contribute.
c. For insurance purposes, the Facility shall be defined to include all areas occupied or affected by HBWC’s activities, as depicted in Exhibit A.

INDEMNITY and ASSUMPTION OF RISK.
a. HBWC shall hold harmless and indemnify the CITY, its officers, agents and employees from every claim or demand which may be made by reason of any injury and/or death to persons and/or injury to property caused by any direct or indirect act or any omission of HBWC, its officers, agents and employees arising out of Lessee's use of the premises. HBWC, at its own cost, expense and risk shall defend any and all actions, suits or other proceedings that may be brought or instituted against the CITY on any such claim or demand and pay or satisfy any judgment that may be rendered against the CITY on any such action, suit, or legal proceedings as a result hereof.
b. CITY shall hold harmless and indemnify HBWC, its officers, agents and employees from every claim or demand which may be made by reason of any injury and/or death to persons and/or injury to property caused by any direct or indirect act or any omission of the CITY, its officers, agents and employees arising out of the CITY's

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use of the premises. CITY, at its own cost, expense, and risk shall defend any and all actions, suits or other proceedings that may be brought or instituted against Lessee on any such claim or demand and pay or satisfy any judgment that may be rendered against the Lessee on any such action, suit, or legal proceedings as a result hereof.

III. CITY RESPONSIBILITIES.
a. CITY shall provide HBWC a designated liaison from the Community Resources Department to serve as the designated contact. All decisions of a CITY designee shall be final with respect to any issues that involve compliance with this Agreement as well as any issues that directly and/or adversely impact the community. Said CITY designee shall consult with the designated representative of HBWC and it shall be the goal of both Parties to reach mutual agreement on matters related to this Agreement.
b. CITY shall provide four (4) parking passes for parking spaces adjacent to the Facility for HBWC to use during approved rental reservation times. c. CITY shall provide one lockable storage cart located in the kitchen storage area of the Facility. The cart may be used to store HBWC supplies. No food items may be stored. CITY will not provide additional storage outside of the designated storage cart.
d. CITY shall provide HBWC with access to the Facility only during HBWC’s reserved Facility use time.

CARE AND MAINTENANCE OF FACILITY.
a. CITY has no duty or obligation to reconstruct the Facility in the event of destruction or partial destruction of the Facility. CITY, at its option, may reconstruct or repair the Facility, whereupon this Agreement shall remain in full force and effect except that no rent will be owing to CITY during said period of reconstruction of repair if such reconstruction or repair interferes with the tenancy created herein to the extent that the Facility cannot be used for the purposes intended. In the event CITY, at its sole discretion, determines not to reconstruct or repair the Facility, then either Party at its option may cause this Agreement to be terminated and neither Party shall have any liability to each other.

IV. DEFAULT.
a. Should HBWC fail to pay any monies due pursuant to this Agreement within three (3) days after written notice from CITY or to perform any other obligation required pursuant to the terms of this Agreement within thirty (30) days after notice from CITY, CITY may immediately cause this Agreement to be terminated and

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thereafter take any action and pursue all remedies available under the laws that exist in the State of California.

V. INDEPENDENT CONTRACTOR.
a. CITY and HBWC shall each be and act as independent contractors and under no circumstances shall this Agreement be construed as one of agency or partnership between CITY and HBWC. Each Party acknowledges and agrees that it neither has nor will give the appearance or impression of having any legal authority to bind or commit the other Party in any way other than as authorized by this Agreement. Nothing in this Agreement shall be construed to create a joint venture between the Parties hereto or to obligate either Party for debts or obligations incurred by the other Party in the performance of this Agreement.

VI. COMPLIANCE WITH THE LAW.
a. Should it be determined that this Agreement or any provision hereof violates any federal, state, or local law or regulation, then the Parties shall promptly modify this Agreement to the extent necessary to bring about compliance with such law and/or regulation; provided, however, that if such modification would cause this Agreement to fail in its essential purpose or purposes, it shall be deemed cancelled by mutual agreement of the Parties and neither Party shall have any further obligations or liabilities with respect to this Agreement.

VII. RESERVATION OF RIGHTS BY CITY.
a. CITY reserves the right in its sole discretion at any time or times to close and suspend the use of the Facility subject to this Agreement for any duration in order to protect public health and safety. Any such closure will not constitute a breach or a default of this Agreement. CITY shall have no liability whatever to HBWC for the effect of such suspension and closure of the Facility, nor shall CITY have any responsibility to provide HBWC with substitute location(s). HBWC’s rights under this Agreement are subject and subordinate to CITY’s police and emergency powers in addition to CITY’s rights to manage its municipal facilities and its contractual rights as described in this Agreement.
b. Subject to prior provisions, this Agreement is binding upon the heirs, assigns and successors of interest of the Parties.

VIII. ENTIRE AGREEMENT.
a. This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof and supersedes all prior understandings or agreements in regard hereto. This Agreement cannot be altered or modified except by an agreement in writing signed by both parties.

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IX. ATTORNEYS FEES.
a. The Parties agree that in the event any action is instituted concerning any of the provisions of this Agreement, the prevailing party may in the discretion of the court be granted as an additional item of damages its attorneys’ fees.

X. NOTICE.
a. Any notice, demand, request, consent, approval or communication required to be made or given pursuant to the provisions of this Agreement may be either personally served upon the Party or deposited in the United States mail, postage prepaid.

CITY OF HERMOSA BEACH

CITY HALL
1315 VALLEY DRIVE
HERMOSA BEACH, CA. 90254
WOMAN’S CLUB OF HERMOSA BEACH
PO Box 43
Hermosa Beach, CA 90254
Any notices so given pursuant to the provisions of this paragraph will be deemed served twenty-four (24) hours after the deposit thereof in the United States mail.

XI. NON-DISCRIMINATION. Lessee shall not in the management, operation, rental, use, or maintenance of the premises discriminate against any person or group based on race, religion, color, medical condition, sex, national origin, political affiliation or opinion, or pregnancy or pregnancy-related condition.
[signatures on following page]

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In Witness Whereof, the Parties have executed this Agreement as set forth below.

CITY OF HERMOSA BEACH
________________________________ ___________________________________ Mayor, Rob Saemann Interim City Manager, Steve Napolitano ________________________________ ___________________________________

ATTEST APPROVED AS TO FORM
City Clerk, Myra Maravilla Interim City Attorney, Todd Leishman WOMAN’S CLUB OF HERMOSA BEACH
_________________________________ _________________________________ President, Mindy Ligos 1st Vice President, Betsy Rubino

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EXHIBIT A: SITE MAP

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EXHIBIT B: CLARK BUILDING USE POLICY

CLARK BUILDING USE POLICY
City of Hermosa Beach • Community Resources Department
710 Pier Avenue, Hermosa Beach, CA 90254
(310) 318-0280 [email protected]
The Clark Building was renovated in 2025 and is located at 861 Valley Drive. The 5,119 sq. ft. art deco facility provides a banquet hall and a variety of spaces and amenities, which users may select a la carte, such as a kitchen, meeting room, stage, podium, audio system, and projector and screen. Tables and chairs are included with all reservations. This historic building can accommodate social and business events, celebrations, or gatherings of various sizes.

RULES AND REGULATIONS

1. Hours of operation: Sunday through Thursday 8:00am to 10:00pm and Friday and Saturday 8:00am to 11:00pm.

2. The Clark Building's reservation rate includes the banquet hall, restrooms, and tables and chairs. The podium is available by request at no additional cost to the reservation holder. The kitchen, meeting room, stage, audio system, and projector and screen are available by request at a cost to the reservation holder.

3. All activities related to the reservation must remain within City approved reserved spaces within the Clark Building. The reservation does not include the use of the adjacent outdoor spaces or lawns unless approved by the City.

4. The maximum assembly occupancy of the banquet hall is 200 persons. The maximum occupancy may vary depending on the event layout.

5. The maximum assembly occupancy of the meeting room is 12 persons. The maximum occupancy total may vary depending on the event layout.

6. No smoking is permitted at any public location within the City of Hermosa Beach.

7. Open flame, propane cooktops, and pyrotechnics, of any kind, are strictly prohibited.

8. Decorative materials of an explosive or highly flammable character shall not be used.

9. Painter tape may be used to secure decorative items to the facility. Other tape or other adhesive, nails, screws, tacks, or pins to secure materials or objects to the facility’s fixtures may not be used.

10. Glitter, confetti, rice, or birdseed may not be used. Flower petals are permissible.

11. Foil, “metalized,” or Mylar balloons may not be used.

12. The release of any balloons is prohibited.

13. No storage is provided. All items associated with the reservation must arrive during the approved reservation time and must leave the building at the conclusion of the reservation.

14. A reservation with groups composed of minors must be supervised by an adult over the age of 21 for each 10 minors.

15. Parking is extremely limited within the City of Hermosa Beach. Adjacent public parking lots are available. The City shall consider requests for reserved parking for reservations should the request not exceed more than four parking spaces at an additional cost to the reservation holder.

16. The reservation holder is responsible for the conduct of all persons associated with the reservation and must be in attendance for the duration of the party or designate an alternate to represent the reservation.

17. The reservation holder is responsible for conducting an orderly event and at the conclusion of the reservation must leave the facility in its original state. The reservation holder’s clean-up responsibilities include but are not limited to, clearing tables, chairs, surfaces, and floors of all products, equipment, or trash associated with the reservation, and the placement of any trash into designated containers. This must be completed promptly within the approved reservation time.

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STAFFING AND SECURITY

1. The City’s Monitor is assigned to oversee the facility during all reservation times unless otherwise approved by the City.

2. The City’s Monitor is assigned to specific duties and is not responsible for any tasks associated with reservation, other than the set-up and teardown of tables, chairs, and the podium or stage if requested.

3. The City’s Audiovisual (AV) Technician is assigned to specific duties related to the setup and operation of the projector and screen, and audio system only. The AV Technician is the only one permitted to operate such equipment.

4. At the beginning of each reservation, the reservation holder or a designated representative is required to check in and check out with the Monitor by signature.

5. Reservation holders are required to schedule break times with City staff if the reservation exceeds five hours. Both parties will agree on this scheduled time to provide the least impact on the reservation.

6. City staff is not authorized to sign or accept any deliveries pertaining to the reservation. Any deliveries must be handled by the reservation holder within the reservation time.

7. The City reserves the right to assign additional City staff, Police, or Fire Personnel, or require the reservation holder to provide Security Guards to ensure a smooth and safe event. Additional costs will be the responsibility of the reservation holder.

AMPLIFIED SOUND

1. Reservation holders may request the use of the City’s audio system or the approval to bring in its own audio system or disc jockey for the purpose of giving instructions, directions, lectures, or transmitting music.

2. Amplified sound shall only be permitted between the hours of 9:00am to 9:00pm on Sunday through Thursday and 9:00am to 10:00pm on Friday and Saturday.

3. If approved, reservation holders are required to obtain an Amplified Sound Permit at an additional cost to the reservation holder.

FOOD AND BEVERAGES

1. The reservation holder is responsible for and required to provide all equipment necessary for food and beverages associated with the reservation.

2. Alcoholic beverage service may only be considered for approval with the reservation in the case that the reservation holder:
a. Hires an Alcoholic Beverage Control (ABC) licensed caterer. i. The City must be provided with a copy of the Type 58 caterer’s permit or the Type 91 beer manufacturer’s caterer permit.
b. The reservation holder is an existing nonprofit organization with a valid tax I.D. number and is approved for a Daily License Authorization through the filing of Form ABC-221 through the Department of Alcoholic Beverage Control.
i. The City must be provided with a copy of the Daily License.

3. Alcohol service shall be permitted through 9:00pm.

4. Reservation holders approved to use the kitchen will be provided with a ‘Clark Building Kitchen Use Manual’ to outline specific rules and regulations pertaining to its use.

5. All businesses providing catering must obtain a business license or have one on file with the City of Hermosa Beach.

6. Reservation holders planning to cater are encouraged to choose a Hermosa Beach-based business.

7. Reservation holders with reservations on Fridays and Saturdays may qualify for a 5% discount on hourly reservation rates should they hire a Hermosa Beach based ABC licensed caterer and/or business for catering services.

8. Reservation holders are prohibited from utilizing single-use plastics (including but not limited to plastic cups, straws, utensils, bags) and polystyrene products. Alternatives include compostable, glass, porcelain, stainless steel, wood, or other eco-friendly materials.

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AMENITIES

1. The use of tables and chairs is included in the reservation rate. Table and chair options are provided in Exhibit A. Linens are not included.

2. An event layout must be selected at least one week prior to the reservation with the specific table and chair placement, as well as the podium and stage if requested. City staff will set up the facility according to the layout in advance of the reservation start time.

3. If upon arrival, the setup needs to be modified, the reservation holder shall not move any equipment. The Monitor will modify the setup as needed to a reasonable extent.

4. Reservation Holders must select their tables and chairs through the options available in Exhibit A and are not permitted to provide their own tables or chairs.

5. Internet access will be made available to the reservation holder.

6. If the reservation holder is requesting the use of the audio system, podium, and/or projector and screen, City staff will reach out at least one week prior to the reservation to discuss the reservation holder’s audiovisual needs.

7. Amenities shall not be removed from the facility.

8. The reservation holder will be responsible for any missing, damaged, or vandalized equipment.

SCHEDULE CHANGES, CANCELLATIONS, AND PAYMENT PROCEDURES

1. Reservations may be made up to one year in advance.

2. The application fee and security deposit must be received with the application.

3. All remaining fees are due two weeks prior to the reservation date. If the reservation includes several reservation dates on an ongoing month to month basis, the reservation holder will be invoiced on the last Monday of each month for the entirety of the upcoming month’s reservation fees. Invoices must be paid within 72 hours from the time the invoice was sent. Failure to pay may result in the cancellation of the reservation(s).

4. Any schedule changes or cancellations must be made in writing by the 15th of the month prior to the month in which the reservation date the reservation holder is requesting a change or cancellation for is scheduled to take place. Schedule changes received after the 15th of the month prior are not guaranteed. Cancellations received after the 15th of the month prior will forfeit the security deposit.

5. Any damage, loss of City equipment, or excess time spent by the reservation holder or by City staff to ensure adequate clean-up is completed will be retained from the security deposit. If the total exceeds the amount of the security deposit, the reservation holder will be billed.

6. Any fees incurred by the City in connection with clean-up activities and associated repairs as a result of the reservation will be retained from the security deposit. If the total exceeds the amount of the security deposit, the reservation holder will be billed.

7. Any policy violations may result in a loss of the security deposit.

8. Under any circumstance, the City has the right to cancel any reservation. Although very rare, unforeseen circumstances may arise, preventing the City from fulfilling the obligations of the reservation.

INSURANCE
Applicant agrees to furnish the City of Hermosa Beach with evidence of comprehensive general liability insurance in the form of a certificate naming "the City of Hermosa Beach, its officers, agents, volunteers, and employees as additional insureds." This exact verbiage is required. Applicant shall notify the City at least thirty (30) days prior to the termination, reduction, cancellation, suspension, modification, or expiration of the policy. Notwithstanding the foregoing, Applicant shall maintain insurance coverage meeting the standards outlined in this Section at all times during the term of the activity or activities for which Applicant submitted its application, as reflected in and permitted by this Agreement. All certificates are subject to the approval of the City’s Risk Manager.

Coverage shall be at least as broad as Insurance Services Form CG 00 01 covering commercial general liability on an "occurrence" basis, including property damage, bodily injury, death, and personal and advertising injury with limits no less than two million dollars ($2,000,000) per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this Agreement, or the general aggregate limit shall be twice the required occurrence limit. The City reserves the right to request greater or lesser amounts of insurance coverage.

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If the use includes athletic activities, Applicant shall provide evidence that the commercial general liability insurance includes coverage for injuries to athletic participants and participant accident insurance.

If the Applicant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

ADDITIONAL INSURANCE REQUIREMENTS FOR EVENTS WITH CATERING AND ALCOHOL If the use includes the sale of alcohol, Applicant shall maintain full liquor liability insurance coverage in an amount not less than $1,000,000 per occurrence, $1,000,000 general aggregate for events where alcohol is sold.

For events where alcohol is served but not sold to event attendees, Applicant shall submit liquor host liability coverage.

If Applicant contracts with a third-party service provider for catering and/or alcohol services, Applicant will require the service provider to procure and maintain, at its sole cost and expense, comprehensive general liability insurance in an amount not less than $1,000,000 per occurrence, $1,000,000 general aggregate, and if applicable, liquor liability coverage in an amount not less than $1,000,000 per occurrence, $1,000,000 general aggregate, or other lines of coverage the City requires. Both City and Applicant shall be endorsed as additional insureds under the service provider’s liquor liability coverage.

Proof of all coverage shall be submitted to the City for review at least 30 days prior to the event date.

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CLARK BUILDING AMENITIES – EXHIBIT A

AMENITY SPECIFICATIONS
TABLES
Round tables
• Seats 6-8
• Textured black top,
black legs
• 30 Available
• 60”(D) x 29”(H)
Rectangular tables
• Seats 4-6
• Textured black top,
black legs
• 30 Available
• 72”(L) x 30”(W) x
29”(H)
CHAIRS
Chivari Chairs
• White
• Seat Cushions
Optional
• 200 Available
Grand Chairs
• Champagne
• 200 Available
STAGE
• Americans with
Disabilities Act (ADA)
Ramp
• 16’ (L) X 12’ (W) X
12” (H)

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CLARK BUILDING AMENITIES – EXHIBIT A CONTINUED…

AMENITY SPECIFICATIONS
PODIUM
• Lectern
• Standing or
Seated Position
• ADA compatible

AUDIO SYSTEM
• Built-in System
• Bluetooth and
RCA 3.5mm Inputs
• Wireless
Microphone

PROJECTOR
• Panasonic PTREZ80 ET0C1U100
• Ceiling Mounted
• Remote Control
Operated
SCREEN • Wall Mounted
• 116” (L) x 65” (W)

City of Hermosa Beach | Page 1 of 4
Meeting Date: August 26, 2025
Staff Report No. 25-AS-057
Honorable Mayor and Members of the Hermosa Beach City Council

ADOPT A RESOLUTION TO APPROVE A MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF HERMOSA BEACH AND THE POLICE MANAGEMENT GROUP EFFECTIVE JULY 1, 2025 – JUNE 30, 2028
(Human Resources, Cynthia Stafford)
Recommended Action:

Staff recommends City Council adopt a Resolution (Attachment 1) approving the Memorandum of Understanding (MOU) between the City of Hermosa Beach and the Police Management Group (Attachment 2) for Fiscal Years 2026-2028.

Executive Summary:

Negotiations for a successor to the Memorandum of Understanding (MOU) between the City and the Police Management Group have resulted in a tentative agreement. The City and the Hermosa Beach Police Management Group met and conferred in accordance with the Meyers-Milias Brown Act and have reached a tentative agreement on the terms and conditions of employment. The terms of the tentative agreements are summarized below.

The total estimated cost of the negotiated changes is $330,000 for FY 2026-2028.

Background:

The Meyers-Milias Brown Act requires that local public agencies negotiate with its respective bargaining units regarding wages, hours, and working conditions. Agreements with the City’s bargaining units expired at the end of June and, under direction from the City Council, the Council-approved City negotiating team has been in negotiations with each of the bargaining units for new terms.

The City’s aim through labor negotiations is to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market to retain and attract a highquality workforce to serve our community across a range of services. Most position classifications in the City are comparable to those in other municipalities. The City contracted with Reward Strategy Group to conduct a compensation study using eleven benchmark cities in the region for labor market comparisons.

City of Hermosa Beach | Page 2 of 4
The City’s negotiating team met and conferred with representatives of the Police Management Group Bargaining Unit to discuss wages, hours, and other terms and conditions of employment contained in the MOU that expired on June 30, 2025.

This bargaining unit consists of the following classifications:
• Police Captain
• Police Lieutenant
The parties have reached a tentative agreement within the authority provided by City Council and on the terms described below. On August 5, 2025, the membership of the Police Management Group Bargaining Unit met and ratified the terms of the tentative agreement, set forth in the new MOU, and hereby submitted to the City Council for approval.

Discussion:

The tentative MOU between the City and the Police Management Group Bargaining Unit, includes the following negotiated terms:

1. Term of the agreement to be July 1, 2025 - June 30, 2028.

2. Article 15 - Wage Rate. The parties agreed to the following salary increases over the next three years.

A. Effective July 1, 2025, the salary table shall be adjusted to bring all bargaining unit positions that are below market to median as determined by the 2024 Reward Strategy Group Salary Survey Results.

B. Effective July 1, 2025, and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3.0%).

C. Effective July 1, 2026, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3.0%).

D. Effective July 1, 2027, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3.0%).

3. Article 16 – Longevity Pay. Add 5% Longevity Increase at five (5) years of service to match POA MOU. This 5% is not reportable to PERS as wages.

4. Article 17 – Peace Officer Standard Training (POST) Certificate Pay. Increase the compensation from 5% to 10% of base pay for possession of a POST Management Certificate to match premium pay in the POA MOU.

City of Hermosa Beach | Page 3 of 4

5. Article 18 – Acting Pay. The parties agree to compensate an employee when they are assigned the full range of job duties for a higher-level classification. Such employee shall be eligible for Acting Pay after 80 consecutive hours of performing the additional duties and shall be placed on a step in the salary range of the position in which they are temporarily assigned that provides at least a 5% increase to their current salary. Any employee receiving Acting Pay shall not be eligible for Additional Duties Pay.

6. Article 19 – Additional Duties Pay. The parties agree to compensate an employee when they are temporarily assigned additional duties. Such employee shall be eligible for Additional Duties Pay of $400 per month after 80 consecutive hours of performing the additional duties. Any employee receiving Additional Duties Pay shall not be eligible for Acting Pay.

7. Article 21 – Health and Welfare. Add a cash in lieu option of $750 per month if an employee waives health insurance through the City of Hermosa Beach and presents proof of medical coverage through a spouse or domestic partner.

8. Article 22 - Deferred Compensation. The parties agreed the City will match employee contributions up to $50.00 per month.

9. Article 26 – Vacation. Increase vacation hours in the following manner:
• Commencing with the 18th year, at the rate of 184 hours/year. • Commencing with the 19th year, at the rate of 192 hours/year. • Commencing with the 20th year, at the rate of 200 hours/year.

10. Article 27 – Holidays. Add half-day (5 hours) holiday on Christmas Eve and New Year’s Eve and delete Section C, Holiday Flex Time of ten (10) hours.

11. Article 33 – Uniforms. Increase the uniform allowance by $200 per year.

12. Article 39 – Wellness Reimbursement. Employees may request up $500 per plan year for participation in activities that promote personal health and wellness.

Article 31 – Physical Fitness Time deleted.

13. Article 42 – Reopeners/Me-Too Clause. The parties agree that if the City provides COLA increases or other benefits to the POA greater than provided to the Police Management Group, the Unit will be eligible for the higher COLA or benefit.

Fiscal Impact:

The total cost of the negotiated changes is estimated to be $330,000 for FY 2026-2028, which will be included in each subsequent year’s proposed budgets. Staff will budget the applicable change in each subsequent fiscal year’s proposed budgets.

City of Hermosa Beach | Page 4 of 4
Attachments:

1. Draft Resolution

2. Police Management Group MOU 2025–2028
Respectfully Submitted by: Cynthia Stafford, Human Resources Noted for Fiscal Impact: Brandon Walker, Administrative Services Director Legal Review: Todd Leishman, Interim City Attorney
Approved: Steve Napolitano, Interim City Manager

CITY OF HERMOSA BEACH
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF

UNDERSTANDING WITH THE POLICE MANAMENT GROUP

BARGAINING UNIT
WHEREAS, employees of the City of Hermosa Beach, California represented by the Hermosa Beach Police Management Group have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and, WHEREAS, the above bargaining unit has selected certain individuals to represent them; and,
WHEREAS, Hermosa Beach Police Management Group and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding which has been ratified by a majority vote of the members of the Hermosa Beach Police Management Group; and,
WHEREAS, the Hermosa Beach Police Management Group Bargaining Unit and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Memorandum of Understanding.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Hermosa Beach resolves to enter into a Memorandum of Understanding with the Hermosa Beach Police Management Group, to be effective for the period July 1, 2025, through and including June 30, 2028, and authorizes the City’s Chief Negotiator to sign the Memorandum of Understanding on behalf of the City.

SECTION 2. This resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and

adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted.

PASSED, APPROVED and ADOPTED on this 26
th day of August 2025.

Rob Saemann
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Todd Leishman
City Clerk Interim City Attorney

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF HERMOSA BEACH
AND

HERMOSA BEACH POLICE MANAGEMENT GROUP
JULY 1, 2025 - JUNE 30, 2028

Police Management Group
July 1, 2025 – June 30, 2028
1 TABLE OF CONTENTS
ARTICLE 1 – PREAMBLE 3
ARTICLE 2 – PARTIES TO THE MEMORANDUM ..................................................................3 ARTICLE 3 – RECOGNITION.....................................................................................................3 ARTICLE 4 – SCOPE & IMPLEMENTATION OF THE MEMORANDUM OF UNDERSTANDING....................................................................................3 ARTICLE 5 – FULL UNDERSTANDING, MODIFICATION, WAIVER.....................................4 ARTICLE 6 – CONSTITUTIONALITY ........................................................................................4 ARTICLE 7 – JOB ACTION.........................................................................................................4 ARTICLE 8 – NON-DISCRIMINATION ......................................................................................5 ARTICLE 9 – MANAGEMENT RIGHTS.....................................................................................6 ARTICLE 10 – GRIEVANCE PROCEDURE..............................................................................7 ARTICLE 11 – WORK SCHEDULE............................................................................................7 ARTICLE 12 – PROBATION .......................................................................................................8 ARTICLE 13 – SENIORITY.........................................................................................................8 ARTICLE 14 – COMPENSATION - METHODS OF COMPENSATION .................................8 ARTICLE 15 – SALARY...............................................................................................................9 ARTICLE 16 – LONGEVITY INCREASES...............................................................................10 ARTICLE 17 – PEACE OFFICER STANDARD TRAINING (POST) CERTIFICATE PAY..10 ARTICLE 18 – ACTING PAY.....................................................................................................11 ARTICLE 19 – ADDITIONAL DUTIES PAY.............................................................................11 ARTICLE 20 – EXEMPT EMPLOYEES ...................................................................................11 ARTICLE 21 – INSURANCE COVERAGE ..............................................................................12 ARTICLE 22 – DEFERRED COMPENSATION ......................................................................13 ARTICLE 23 – RETIREMENT...................................................................................................13 ARTICLE 24 – RETIREE MEDICAL INSURANCE .................................................................14 ARTICLE 25 – LEAVE OF ABSENCE......................................................................................15 ARTICLE 26 - FAMILY AND MEDICAL CARE LEAVE ..........................................................16 ARTICLE 27 – VACATION ........................................................................................................16

Police Management Group
July 1, 2025 – June 30, 2028
2 ARTICLE 28 – HOLIDAYS ........................................................................................................16 ARTICLE 29 – SICK LEAVE .....................................................................................................17 ARTICLE 30 – BEREAVEMENT LEAVE .................................................................................18 ARTICLE 31 – JURY DUTY ......................................................................................................18 ARTICLE 32 – MANAGEMENT LEAVE...................................................................................18 ARTICLE 33 – EDUCATIONAL INCENTIVE...........................................................................19 ARTICLE 34 – UNIFORM ALLOWANCE.................................................................................19 ARTICLE 35 – AMMUNITION REPLACEMENT .....................................................................19 ARTICLE 36 – DISCIPLINARY ACTIONS...............................................................................20 ARTICLE 37 – LAYOFF.............................................................................................................20 ARTICLE 38 – NO SMOKING...................................................................................................21 ARTICLE 39 – ANNUAL PHYSICAL ........................................................................................21 ARTICLE 40 – WELLNESS REIMBURSEMENT PROGRAM ...............................................21 ARTICLE 41 – INDUSTRIAL INJURIES AND ILLNESSES...................................................22 ARTICLE 42 – REOPENERS/ME-TOO CLAUSE...................................................................23 ARTICLE 43 – DURATION OF CONTRACT...........................................................................23 EXHIBIT A 25
EXHIBIT B 26

Police Management Group
July 1, 2025 – June 30, 2028
3 MEMORANDUM OF UNDERSTANDING

FOR THE POLICE MANAGEMENT GROUP
JULY 1, 2025 – JUNE 30, 2028
ARTICLE 1 – PREAMBLE
The provisions of this Agreement have been developed in the interest of promoting and improving Employee relations between the City of Hermosa Beach, California and the Police Management employees who are represented by the Police Management Group (PMG).

ARTICLE 2 – PARTIES TO THE MEMORANDUM
This Memorandum of Understanding, hereinafter referred to as the "MOU" or the "Agreement," has been entered into, pursuant to the laws of the State of California and the City of Hermosa Beach, California, by and between the CITY OF HERMOSA BEACH, hereinafter referred to as the "City" or as "Management," and the HERMOSA BEACH POLICE MANAGEMENT GROUP, hereinafter referred to as the "Police Management Group" or “HBPMG.”
ARTICLE 3 – RECOGNITION
Pursuant to the provisions of the Meyers-Milias-Brown Act, (Government Code 3500, et seq.), the City agrees to, and does, recognize the Hermosa Beach Police Management Group as the exclusive representative of the full-time positions in the classifications of Police Captain and Police Lieutenant of the City of Hermosa Beach.

ARTICLE 4 – SCOPE & IMPLEMENTATION OF

THE MEMORANDUM OF UNDERSTANDING
A. This Memorandum of Understanding constitutes the joint recommendation of Management and the Police Management Group. It shall not be binding in whole or in part upon the parties unless and until the following conditions have been complied with:

Police Management Group
July 1, 2025 – June 30, 2028
4 1. The Police Management Group shall notify the City Council in writing that it has formally approved the Memorandum of Understanding in its entirety.

2. The City Council shall approve this Memorandum of Understanding.

3. This MOU has been reached following good-faith negotiations, by the authorized Management representative of the City Council and the authorized representative for the Hermosa Beach Police Management Group.

ARTICLE 5 – FULL UNDERSTANDING, MODIFICATION, WAIVER
A. It is intended that this Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior to existing understanding or agreements by the parties whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

B. Except as specifically provided herein, it is agreed and understood that each party hereto voluntarily and unqualifiedly waives its rights and agrees that the other shall not be required to negotiate with respect to any subject or matter covered herein during the term of this Agreement.

C. Any agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall not be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved and implemented by the City Council.

D. The waiver of any breach, term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

ARTICLE 6 – CONSTITUTIONALITY
If any section, subsection, sentence, clause or phrase of this Agreement is for any reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portion of this Agreement. The Association, through the use of its legal staff, will defend the City against any lawsuits brought about or due to any item of this Agreement. It is understood that the City will not have to pay any of the costs of defense of this Agreement.

ARTICLE 7 – JOB ACTION
A. The Police Management Group and its members agree that during the term of this MOU there shall be no strike.

Police Management Group
July 1, 2025 – June 30, 2028
5 B. In the event of an unauthorized strike, the City agrees that there will be no liability on the part of the Police Management Group provided the Police Management Group promptly and publicly disavows such unauthorized action; orders the employees to return to work and attempts to bring about a prompt resumption of normal operations; and provided further, that the Police Management Group notifies the City in writing, within forty-eight (48) hours after the commencement of such strike, what measures it has taken to comply with the provisions of this strike.

C. In the event such strike by the Police Management Group has not affected resumption of normal work practices, the City shall have the right to take appropriate disciplinary action.

ARTICLE 8 – NON-DISCRIMINATION
Both parties to this Agreement agree not to discriminate against any employee or applicant because of hair texture and protective hairstyles (such as braids, locks, and twists), color, religious creed (including religious dress and religious grooming practices), national origin, ancestry, citizenship status, age (40 years and older), sex (including pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions), gender, gender identity and expression (including transgender identity and expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning (or is perceived to be transitioning), sexual orientation, sex stereotyping, marital status, domestic partner status, military service and veteran status, physical and/or mental disability (including HIV and AIDS), legally protected medical condition or information (including genetic information), protected medical leaves (requesting or approved), status as a victim of domestic violence, sexual assault, or stalking, enrollment in a public assistance program, their intersectionality of protected characteristics, Association Membership or activity or any other basis protected by local, state, or federal laws. political affiliation, race, religion, color, sex, age, marital status, national origin, or handicap, and with proper regard for their privacy and constitutional rights as citizens.

Additionally, the City expects and requires all employees to treat one another with dignity and respect. Harassment of fellow employees is a violation of law. No employment decision may be made based upon an employee’s submission to or rejection of such conduct. It is the responsibility of any employee who believes that they are the victim of such harassment to report the conduct to their Division Commander, Chief of Police, Human Resources Manager or the City Manager in a timely manner.

Police Management Group
July 1, 2025 – June 30, 2028
6 ARTICLE 9 – MANAGEMENT RIGHTS
A. The exercise of the foregoing powers, rights authority, duties and responsibilities by the City, the adoption of policies, rules, regulations and practices in furtherance thereof, and the use of judgment and the discretion in connection therewith, shall be limited only by the specific and express terms of this Memorandum of Understanding, City Personnel Ordinance and Personnel Rules and Regulations, the Public Safety Officers Procedural Bill of Rights, and other statutory laws.

B. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the exercise of management's rights shall impact on employees of the bargaining unit, the City agrees to meet and confer with representatives of the Police Management Group, upon request by the Police Management Group, regarding the impact of the exercise of such rights unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding.

C. MANAGEMENT RIGHTS

1. Manage the City.

2. Schedule working hours.

3. Establish, modify or change work schedules or standards.

4. Institute changes in procedures.

5. Direct the workforce, including the right to hire, promote, demote, transfer, suspend, discipline or discharge any employee.

6. Determine the location of any new facilities, building, departments, divisions, or subdivisions thereof, and the relocation, sale, leasing or closing of facilities, departments, divisions, or subdivisions thereof.

7. Determine services to be rendered.

8. Determine the layout of buildings and equipment and materials to be used herein.

9. Determine processes, techniques, methods and means of performing work.

10.Determine the size, character and use of inventories.

11.Determine the financial policy including accounting procedures.

12.Determine the administrative organization of the system.

13.Determine the selection, promotion, or transfer of employees.

Police Management Group
July 1, 2025 – June 30, 2028
7 14.Determine the size and characteristics of the workforce.

15.Determine the allocation and assignment of work to employees.

16.Determine policy affecting the selection of new employees.

17.Determine the establishment of quality and quantity standards and the judgment of quality and quantity of work required.

18.Determine administration of discipline.

19.Determine control and use of City property, materials and equipment.

20.Schedule work periods and determine the number and duration of work periods.

21.Establish, modify, eliminate or enforce rules and regulations.

22.Place work with outside firms.

23.Determine the kinds and numbers of personnel necessary.

24.Determine the methods and means by which such operations are to be conducted.

25.Require employees, where necessary, to take in-service training courses during working hours.

26.Determine duties to be included in any job classifications.

27.Determine the necessity of overtime and the amount of overtime required.

28.Take any necessary action to carry out the mission of the City in cases of an emergency.

ARTICLE 10 – GRIEVANCE PROCEDURE
The Grievance Procedure is attached as Exhibit B and incorporated herein by reference.

ARTICLE 11 – WORK SCHEDULE
A. Police Captains and Police Lieutenants shall with the approval of the Chief of Police have the choice of working a ten (10) hour day, four (4) days per work week; or an eight (8) hour day, five (5) days per work week.

B. In the event of an emergency situation, the City may cancel, alter or amend the work schedule as necessary immediately.

Police Management Group
July 1, 2025 – June 30, 2028
8 ARTICLE 12 – PROBATION
A. All employees covered by this Agreement shall have a probationary period of twelve (12) months. Upon the recommendation of the Chief of Police and with the approval of the City Manager, an employee’s probation may be extended for up to six (6) months. Upon successful completion of the probation, the employee shall be given a salary step increase.

B. Probationary employees, whether new hires or promotional, shall be formally evaluated every three (3) months.

C. Employees shall receive notification of a probationary extension at least seven (7) calendar days prior to the one-year anniversary of the probationary period.

ARTICLE 13 – SENIORITY
A. Seniority shall be a determining factor in all acting appointments, promotions, and transfers within the unit. Seniority, as herein applied, shall be defined as the last date of hire with the City, and as applied shall consist of the following factors:

1. Qualifications

2. Ability

3. Length of Continuous Service
B. When 1 and 2 are relatively equal, length of continuous service shall govern.

C. This principle of seniority shall not apply to any employee with less than one (1) year of continuous service with the City or with less than six (6) months of service in their most recent job classification.

D. Seniority shall no longer be applicable if an employee is terminated by discharge or other end of employment (except in cases of layoff).

ARTICLE 14 – COMPENSATION - METHODS OF COMPENSATION
A. Methods of compensation:

1. Compensation shall be determined on a monthly salary basis.

2. Payments due shall be paid on a semi-monthly basis unless otherwise mutually agreed. By mutual consent early payments and other modifications can be made.

Police Management Group
July 1, 2025 – June 30, 2028
9 3. Base monthly salary shall be considered the rate of pay for a particular classification without consideration of any other form of compensation.

B. Salary Advancements within Base Pay Range:

1. Step Advancement:
a. All salary advances shall be based on merit and fitness and requires the employee to have earned an overall rating of “meets expectations” on the annual performance evaluation. All increases shall be recommended by the Chief of Police and approved by the City Manager. In the cases of exceptional merit, and upon the recommendation of the Chief of Police, an employee may, with the approval of the City Manager, be advanced a step within the salary range at other than one-year intervals. Such advancements shall establish a new anniversary date for future advancements. Merit increases shall be effective at the beginning of the next pay period (1st or 16th of month).
b. Upon the successful and satisfactory completion of twelve (12) months service, employees shall be advanced one step within their range and yearly thereafter until the maximum within the range achieved.

Promotion
a. An employee who is promoted to a position in a class with a higher salary rate shall be entitled to the lowest step in the higher range which exceeds the present rate of pay (including base salary plus education/longevity pay) with the intent of increasing the salary rate in the new classification (base salary plus education/longevity pay) by at least five percent (5%).

ARTICLE 15 – SALARY

BASE MONTHLY SALARY
The City agrees to hire and appropriately compensate capable Police Management employees. They will be professional, be adequately trained, and meet standards required for such positions. The Council reaffirms that compensation will include such items as salary, contribution for PERS, deferred compensation, health insurance and merit pay.

A. The salary table attached to the MOU as Exhibit A shall be revised by increasing each amount as follows:

Police Management Group
July 1, 2025 – June 30, 2028
10 1. Effective July 1, 2025, the salary table shall be adjusted to bring all bargaining unit positions that are below market median as determined by the 2025 Reward Strategy Group Salary Survey Results report to the median identified by the report.

2. Effective July 1, 2025, and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3%).

3. Effective July 1, 2026, the salary table for all classifications shall be increased by three percent (3.0%).

4. Effective July 1, 2027, the salary table for all classifications shall be increased by three percent (3.0%).

B. The parties understand that these amounts shall be reported to the California Public Employees Retirement System (CalPERS) as employee compensation and thus be “PERSable.”
ARTICLE 16 – LONGEVITY INCREASES
A. Upon commencement of the fifth (5th) year (Not reportable to PERS, as PERS requires "exceeding of 5 years")
B. Upon commencement of the tenth (10th) year of service as a sworn peace officer in Hermosa Beach, employee will receive additional compensation of five percent (5%) above base salary.

C. Upon commencement of the fifteenth (15th) year of service as a sworn police officer in Hermosa Beach, employee will receive additional compensation of five percent (5%) above base salary.

D. Upon commencement of the twenty-first (21st) year of service as a sworn peace officer in Hermosa Beach, employee will receive an additional compensation of five percent (5%) above base salary.

ARTICLE 17 – PEACE OFFICER STANDARDTRAINING (POST)

CERTIFICATE PAY
Employees shall be eligible to receive additional compensation of ten percent (10%) of base salary for possession of a POST Management Certificate.

Police Management Group
July 1, 2025 – June 30, 2028
11 ARTICLE 18 – ACTING PAY
A. Employees covered by this Agreement who are temporarily assigned to perform the full range of a higher classification because of emergency conditions, Sick Leave, Vacation and/or relief shall receive a higher rate of pay commencing after eighty (80) consecutive hours of such assignment. Employee shall be placed on a step in the salary range of the position in which they are temporarily assigned that provides at least a five percent (5%) increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement.

B. Any employee receiving Acting Pay shall also not be eligible for Additional Duties Pay.

C. In accordance with Gov. Code Section 20480, if an employee is placed in an Acting position that is vacant as a result of a vacancy, the hours worked by the employee shall be reported to PERS and shall not exceed nine hundred sixty (960) hours per fiscal year.

ARTICLE 19 – ADDITIONAL DUTIES PAY
When an employee is officially determined by their Department Director and the HR Manager to be temporarily performing additional duties outside of their classification, such employee shall be eligible for Additional Duties Pay of four hundred dollars ($400) per month. Eligibility for the additional pay shall commence after 80 consecutive hours of such.

Any employee receiving Additional Duties Pay shall also not be eligible for Acting Pay.

Employees are eligible to receive this pay for up to six (6) months or until the duties are removed, whichever is less. If the employee is still performing the duties after six (6), the City shall make every effort to reassign the additional duties to another eligible employee.

ARTICLE 20 – EXEMPT EMPLOYEES
The Classifications of Police Captain and Police Lieutenant are designated as exempt under FLSA.

Police Management Group
July 1, 2025 – June 30, 2028
12 ARTICLE 21 – INSURANCE COVERAGE
A. Life Insurance
City shall provide a life insurance policy for each employee, payable in the amount of two times annual salary up to a maximum of two hundred thousand dollars ($200,000).

B. Mental Health
City shall make such a plan available to City employees; the full cost to be paid by the City.

C. Vision Insurance

1. City shall make such a plan available to City employees; the full cost to be paid by the employee.

2. During the Term of this MOU, the City intends to review its dental and vision providers for the purpose of providing quality care for a reasonable price. If the City changes providers and the cost of the dental premium is reduced by at least twenty percent (20%), the City will bear the cost of lowest cost vision plan for the employee + 2 or more dependents.

D. Medical Health Insurance

1. The City will provide employees with a choice of a Preferred Provider Option (PPO) or a Health Maintenance Organization (HMO), both of which will include prescription coverage.

2. The City’s maximum monthly premium contribution toward medical insurance for each employee’s selected plan and level of coverage will be one thousand nine hundred thirty-one dollars and four cents ($1,931.04). Employees choosing a medical insurance plan and/or coverage level with a monthly premium that exceeds the City’s maximum contribution shall pay the difference by payroll deduction.

3. The current medical plan or its equivalent, to remain in force during the term of this MOU. City shall meet and consult should there be a change in providers or plan structure.

4. An employee who demonstrates proof of medical insurance coverage available through a spouse may receive a cash payment of seven hundred fifty dollars ($750) per month in lieu of City provided coverage.

Police Management Group
July 1, 2025 – June 30, 2028
13 E. Dental Insurance

1. City shall provide for Police Management Group members a dental insurance plan to include a choice of an indemnity plan or a pre-paid plan.

2. The City’s maximum monthly premium contribution toward dental insurance for each employee’s selected plan and level of coverage will be two hundred twentysix dollars and thirty cents ($226.30). Employees choosing a dental insurance plan and/or coverage level with a monthly premium that exceeds the City’s maximum contribution shall pay the difference by payroll deduction.

ARTICLE 22 – DEFERRED COMPENSATION
City agrees to make available to all employees in the Police Management Group a citywide Deferred Compensation Plan.

A. Each employee, individually, may elect to participate in any deferred compensation plan offered by the City.

B. The City will match employee contributions to the deferred compensation plan of up to $50 per pay period, effective the first full pay period following City Council approval and the parties’ execution of the MOU.

ARTICLE 23 – RETIREMENT
A. Tier I. The City provides the PERS 3% at 50 Plan with one-year final compensation for employees hired prior to July 1, 2011.

B. Tier II. For employees hired on or after July 1, 2011, the PERS retirement benefit formula shall be 2% @ 50, with retirement benefits calculated on one-year final compensation. Other retirement benefits for employees hired on or after this adoption date will remain the same as employees hired prior to this effective date, including Section 20042, One Year Final Compensation and Sections 21624, 21626, and 21628, Post-Retirement Survivor Allowance. Employee shall be responsible for their full employee contribution.

C. Tier III. Unit members who are “new members” as defined in by AB 340, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly

Police Management Group
July 1, 2025 – June 30, 2028
14 situated employees, whichever is greater. (AB 340 – Government Code section 7522.30)
Unit members who are “new members” as defined in the above AB 340, shall be enrolled in the AB 340 provided for SAFETY OPTION PLAN TWO (2.7% at 57) (Government Code section 7522.25(e), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) ARTICLE 24 – RETIREE MEDICAL INSURANCE
A. Tier I: Retiree medical insurance stipends provided to employees who retired prior to July 1, 2005, shall remain at existing amounts.

B. Tier II: Employees covered by this agreement who were hired before July 1, 2017, and who retire from the City of Hermosa Beach after July 1, 2005, will be eligible for the following medical insurance benefits:

The City will pay an amount up to the employee only HMO premium available through the City’s medical insurance provider for employees who complete a minimum of twenty (20) years total full-time sworn police service with the City, regardless of the employee’s age at the time of separation from city service.

1. For retirement at age fifty-five (55) with a minimum of fifteen (15) years total fulltime service with the City, the City will pay an amount up to the employee only HMO rate available through the City’s medical insurance provider.

2. Said benefit provided under Sections A and B above, shall commence with the first month following the employee’s approved retirement date by Cal PERS.

3. In order to be eligible for medical supplement payments, an employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan.

4. Any payments made by the City shall normally be made directly to a medical insurance provider. However, other payment arrangements may be considered.

5. Any employee receiving a benefit under this article agrees to apply for, and enroll in, any Federal and/or State medical insurance plan (e.g. Medicare, Medicaid, etc.) for which they may become eligible unless such Federal and/or State medical insurance plan or equivalent no longer exists.

Police Management Group
July 1, 2025 – June 30, 2028
15 6. Upon enrollment in Medicare, the City agrees to pay the premium for purchasing coverage equivalent to the benefits provided under the existing Medicare “Part B” program.

7. For employees not eligible for Medicare benefits, who were employed prior to the City’s participation in the Medicare program, the City will continue retiree medical insurance benefits the employee is eligible for under section 1 or 2 above.

C. Tier III: Employees covered by this agreement who were hired on or after July 1, 2017, will be eligible for the following medical insurance benefits:

1. For service retirement at age fifty-five (55) with a minimum of twenty (20) years of continuous full-time service with the City, the City will pay a four hundred dollar ($400) per month medical insurance supplement.

2. The benefit provided Tier III, shall commence with the first month following the employee's approved retirement date by Cal PERS.

3. In order to be eligible for medical supplement payments, an employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan.

4. Any payments made by the City shall normally be made directly to a medical insurance provider. However, other payment arrangements may be considered.

5. The payment of the medical insurance supplement will end when the employee reaches the age of eligibility for any Federal or State medical insurance plan.

ARTICLE 25 – LEAVE OF ABSENCE
Management agrees to allow all employees covered by this MOU to take a leave of absence without pay, not to exceed sixty (60) days, in conjunction with, or in addition to, their regular vacation time. This leave will only be allowed every other year. Timing and duration of leave is subject to approval of the Chief of Police and subject to the needs of the department. This provision shall not reduce any leave entitlement an employee may have under the Military and Veterans Code.

Police Management Group
July 1, 2025 – June 30, 2028
16 ARTICLE 26 - FAMILY AND MEDICAL CARE LEAVE
As required by State and Federal law, the City will provide Family and Medical Care Leave for eligible Employees. The City maintains a FMLA/CFRA/PDL procedure which governs Family and Medical Care Leave, which is provided to all employees at the start of their employment and on the City’s Intranet site.

ARTICLE 27 – VACATION
A. Vacation accrual rates shall be as follows:

1. Upon hire, at the rate of 96 hours/year.

2. Commencing with the 7th year, at the rate of 112 hours/year.

3. Commencing with the 8th year, at the rate of 136 hours/year.

4. Commencing with the 15th year, at the rate of 160 hours/year.

5. Commencing with the 16th year, at the rate of 168 hours/year.

6. Commencing with the 17th year, at the rate of 176 hours/year.

7. Commencing with the 18th year, at the rate of 184 hours/year.

8. Commencing with the 19th year, at the rate of 192 hours/year.

9. Commencing with the 20th year, at the rate of 200 hours/year.

B. An employee covered by this Agreement may accrue vacation time to a maximum of two hundred seventy (270) hours. Cash out of any earned but unused vacation accrual in excess of two hundred seventy (270) hours (as of January 31st each year) shall be automatically cashed out as part of the February 20th payroll.

ARTICLE 28 – HOLIDAYS
A. Effective July 1, 2022, all Employees covered by this Agreement shall receive one hundred ten (110) hours per year for the following holidays off with pay: New Year’s Day; Martin Luther King, Jr.’s Birthday; President’s Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veterans Day; Thanksgiving Day; half-day (five (5) hours) Christmas Eve; Christmas Day; half-day (five (5) hours) New Year’s Eve.

B. All employees required to work on a recognized holiday shall receive Holiday Compensation Time. Employees covered by this Agreement may accrue up to 100

Police Management Group
July 1, 2025 – June 30, 2028
17 hours of Holiday Compensation Time for those holidays in which compensatory time is earned. The City will provide a holiday schedule to the Police Management Group for review prior to January 1 of each year. For all holidays that fall on a Friday or Saturday employees will receive compensatory time. For all holidays that fall on a Sunday, the holiday will be observed on Monday. Cash out of any earned, but unused holiday compensation hours in excess of 100 hours (as of January 31 of each year) shall be automatically cashed out as part of the February payroll.

ARTICLE 29 – SICK LEAVE
A. Employees shall accrue ten (10) hours of sick leave per month until the commencement of their fifteenth (15th) year, at which time they will accrue twelve (12) hours per month.

B. After an employee accrues and maintains one hundred seventy-six (176) hours of sick leave, the employee may cash out annually up to a maximum of ninety-six (96) hours of accrued sick leave at the employee’s current hourly pay rate.

C. In the case of serious illness of a member of the immediate family, the employee may utilize sick leave. Immediate family for the purpose of this section shall be defined as:
father; mother; father-in-law; mother-in-law; grandparents; brother; sister; spouse; or legal dependent. Employees may predesignate and substitute other members for those members defined as "immediate family." The intent of this provision is not to expand the number of persons included in the definition of "immediate family" or to increase paid leave opportunities, but rather to recognize variation in family structure (e.g. stepmother for mother).

D. Employees covered by this Agreement may, upon resignation or retirement from their employment with the City, elect to be paid for unused sick leave accrued prior to September 16, 2017, at their current rate of pay. Except as provided in A above, unused sick leave accrued after September 16, 2017, shall not be cashed out.

Pursuant to Government Code § 20965, related CalPERS, rules and the City’s contract with CalPERS, upon retirement from City employment, a unit member’s unused accumulated sick leave at the time of retirement may be converted to additional service credit.

E. Except as otherwise provided in B above, sick leave accrued on or after September 16, 2017, shall not be paid out at resignation or retirement.

Police Management Group
July 1, 2025 – June 30, 2028
18 ARTICLE 30 – BEREAVEMENT LEAVE
A. Each employee covered by this Agreement shall receive a maximum of forty hours per occurrence to be utilized for Bereavement Leave because of a death in their immediate family, including spouse, child, parent, sibling, grandparent, grandchild, domestic partner, parent in-law, and stepchild.

B. One additional unpaid shift shall be granted to the employee upon request. The employee can elect to use available paid leave accruals to cover the additional shift.

C. Employees may pre-designate and substitute other Members defined as “immediate family.” The intent of this provision is not to expand the number of persons included in the definition of “immediate family” or to increase paid leave opportunities, but rather to recognize variation in family structure (e.g. stepmother for mother D. Bereavement Leave shall be taken within twelve (12) months of the death and does not need to be consecutive nor will pay in lieu of unused leave for bereavement be provided.

ARTICLE 31 — JURY DUTY
A. If called for jury duty in a Municipal, Superior, or Federal Court, or for a Coroner's Jury, Employees covered by this Agreement shall remain in their regular pay status.

All jury fees except mileage reimbursement shall be returned to the City. The City will provide paid jury duty leave in accordance with Administrative Policy P15.

B. Employees who have served four (4) or more hours in one day of jury duty will not be required to report for work within twelve (12) hours of the time they were released, dismissed, or excused from jury duty for the day. At the Supervisor’s discretion an employee may be excused from the reporting requirement if the time they would be at work is de minimis.

ARTICLE 32 – MANAGEMENT LEAVE
Police Captains and Police Lieutenants shall be allowed one hundred (100) hours of additional leave each calendar year in addition to flex time for extraordinary assignments, fixed holidays and bereavement leave. Management leave does not accumulate or carry over; it must be used each year. Said Management Leave shall have no monetary value.

Police Management Group
July 1, 2025 – June 30, 2028
19 ARTICLE 33 – EDUCATIONAL INCENTIVE
A. The City agrees that Police Captains and Police Lieutenants who desire to enroll in training, certification programs and academic courses that may provide the employee with general or specific skills and/or knowledge that contributes to their ability to perform their current position or enhances promotional opportunities, shall have their course fees (up to CSU rate), books, materials, and tuition for any CSU (employees who attend a non-CSU campus will receive up to the average of CSULB, CSUDH & CSULA paid by the City, in advance, subject to the approval of the City Manager. The employee will reimburse the City for all expenses incurred for any class or classes the employee fails or does not complete or if the employee voluntarily leaves City employment during the period they are enrolled and received payment.

B. Advancement of tuition shall be on a pro-rated basis depending upon the number of hours an Employee covered by this Agreement is normally scheduled to work (i.e. full time @ 100% coverage, half time @ 50% coverage, etc.).

ARTICLE 34 – UNIFORM ALLOWANCE
A. The uniform allowance for Police Captains and Police Lieutenants shall be one thousand two hundred dollars ($1,200) per year, payable through the regular payroll schedule.

B. Uniform allowances shall be reported to CalPERS periodically when earned, on a per pay period basis, in accordance with the Public Employees’ Retirement Law (PERL) and applicable regulations.

C. These items are not reportable for “new members” under the Public Employees’ Pension Reform Act of 2013 (PEPRA), as defined by Government Code Section 7522.04(f).

ARTICLE 35 – AMMUNITION REPLACEMENT
A. In addition to the quarterly qualification ammunition, each officer will be allowed to utilize fifty (50) rounds of ammunition for their primary duty weapon, at City expense, each month at the firing range used by the Department. The City will also pay for the expense of using the range. The ammunition will be used to practice on an approved course of fire so that officers will become more proficient with their service weapons.

B. The City will not compensate officers for the time spent to utilize this ammunition.

Officers must use the allotted ammunition each month; it does not accumulate.

Police Management Group
July 1, 2025 – June 30, 2028
20 ARTICLE 36 – DISCIPLINARY ACTIONS
A. For the purpose of defining disciplinary actions, the following definitions shall be applicable:

1. Dismissal

2. Demotion

3. Suspension

4. Reductions in pay

5. Reprimand (written)
B. Appeals from the disciplinary actions shall be subject to the City of Hermosa Beach Personnel Rules and Regulations.

C. Prior to the commencement of any internal investigation which is likely to subject the officer to disciplinary action, the officer shall be advised of their rights pursuant to Section 3300, et. seq., of the California Government code as amended. All rights contained therein shall be applicable to the disciplinary actions and shall be used as a minimum guideline only.

D. Any reprimand record or other writing containing adverse comments included in the employee’s personnel package is a written reprimand. Adverse comments or documents placed into the Evaluation Log (also referred to as the “Red File”) are not written reprimands. Evaluation log entries may be appealed to the Chief of Police pursuant to procedures set forth in the Police Department Policy and Procedures Manual.

E. Inclusionary periods as currently set forth in the Police Department rules and Regulations shall remain in effect during this MOU
ARTICLE 37 – LAYOFF
A. Hermosa Beach Municipal Code Section 2.76 and the City of Hermosa Beach Personnel Rules and Regulations are the governing provision regarding layoff.

However, City further agrees that prior to implementation of any such layoff, discussions shall be held to explore other alternatives, mitigation, etc.

Police Management Group
July 1, 2025 – June 30, 2028
21 B. It is further agreed that in the event the City should contract with another agency for provision of police services, the Police Management Group shall receive six (6) months advance notice prior to the effective date of any such change.

ARTICLE 38 – NO SMOKING
The parties agree that the City shall amend its class specifications for unit positions to provide that employees who become unit employees after March 1, 1988, shall, as a condition of their continued employment, refrain from smoking tobacco or any other nontobacco substance at any time on or off duty. Violation of this condition of employment shall be deemed good cause for dismissal.

ARTICLE 39 – ANNUAL PHYSICAL
A. All employees covered by this Agreement shall be provided with a complete physical examination (participation is voluntary) according to the following schedule:

1. Every two (2) years up to, and including, age 38.

2. Annually at age 39 and thereafter.

B. Said physical to be at a location of the City's choice and at the City's expense.

C. The physical exam is to include at least the following:

1. Review of medical history, physical examination; Urinalysis; VDRL; X-Rays (Chest PA, Lumbar Spine and Cervical) only if indicated; Blood groupings, CBC, Chem Panel 17; EKG and Treadmill; Lipid Analysis; Pulmonary Function Test; Hearing test; Strength and Flexibility testing.

D. Upon submitting proof of an annual physical exam employees covered by this Agreement shall receive ten (10) hours of wellness time. This time may not be cashed out and will not roll over to the subsequent year.

ARTICLE 40 – WELLNESS REIMBURSEMENT PROGRAM
A. Employees may request reimbursement of up to five hundred dollars ($500) dollars per plan year for participation in activities that promote personal health and wellness.

B. Eligible expenses must be incurred while actively employed and include:

1. Gym, fitness center/studio, and health club membership and fees.

Police Management Group
July 1, 2025 – June 30, 2028
22 2. Fitness and nutrition counseling.

3. Fitness and sports classes/lessons.

4. Yoga, Pilates and meditation classes.

C. Expenses not eligible for reimbursement include but are not limited to apparel, vitamins, proteins, supplements, exercise equipment and salon/spa memberships. All reimbursement requests are subject to Human Resources approval.

D. The Plan Year for the wellness reimbursement will be paid for expenses purchased from July 1 through June 30 of the prior current fiscal year. All reimbursement requests must be submitted to Human Resources between the first and last business day of July each year (annual request period). Costs above the annual maximum of five hundred dollars ($500) will be the sole responsibility of the employee. No carryover is allowed of any unused funds. Employee must submit the Wellness Reimbursement Request Form to Human Resources during the annual request period and employee must attach all itemized receipts/proof of purchase for qualified purchases to the request form. Human Resources may request additional information to determine eligibility for reimbursement. Employees must be active on the payout date in order to receive reimbursement.

ARTICLE 41 – INDUSTRIAL INJURIES AND ILLNESSES
A. In the event that an employee covered by this Agreement sustains an injury or illness occurring in the course of their employment with the City, the employee shall be entitled to that compensation prescribed by State law and all items of compensation specified in this Agreement.

B. An employee on industrial injury leave shall be under the direction of the City. They shall be available at all times during City business hours subject to the advice of their treating physician.

C. An employee on industrial injury leave shall be subject to the rights, protection and responsibilities as detailed in the Police Department policy manual.

D. It is understood that the City will provide medical facilities to be used for industrial accidents or illness.

E. Employees will be seen and treated by medical professionals that are part of the Medical Provider Network, unless an employee has pre-designated a physician.

F. Employees may designate a personal physician to provide treatment in the event of a workers’ compensation injury or illness. A pre-designation form entitled,

Police Management Group
July 1, 2025 – June 30, 2028
23 “PERSONAL PHYSICIAN PRE-DESIGNATION FORM FOR WORK RELATED INJURIES” must be completed in order to designate a physician. This two-page form is available in the Human Resources Office and must be signed by the employee AND their personal physician and returned to the Human Resources Office BEFORE an injury occurs in order to be valid.

G. An employee who suffers an injury-on-duty will continue to have payment of the City portion of all Health Insurance premiums paid for a period of seven (7) full months commencing with the month in which the injury occurred.

H. Nothing herein shall prevent an employee from utilizing their accrued time in lieu of receiving temporary disability payments under the provisions of the Workers’ Compensation laws of the State of California.

ARTICLE 42 – REOPENERS/ME-TOO CLAUSE
The parties agree to open the meet and confer process during the term of this MOU only as regards the following issues. These reopeners are not contingent upon the execution of any successor MOU and no successor MOU is contingent upon agreement on these reopeners:

A. The City and PMG agree to meet and confer on moving the City from a bi-monthly payroll period to a bi-weekly payroll period. It is understood that in order to do so, all bargaining units in the City must agree to this change.

B. The City and PMG agree to meet and confer on the City’s contribution for medical coverage if the monthly premium exceeds the cost of the family HMO plan.

C. During the term of this MOU, if the Police Officer’s Association receives a higher increase to the proposed cost of living increases, as described in Article 15 Wages, the City agrees to provide the same such increases and improvements to the Association.

D. The provision of this paragraph shall expire on and not be effective after June 30, 2028.

ARTICLE 43 – DURATION OF CONTRACT
This MOU is effective July 1, 2025 and shall remain in full force and effect through June 30, 2028.

Police Management Group
July 1, 2025 – June 30, 2028
24 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Memorandum of Understanding this _______ day of ___________________, 2025.

HERMOSA BEACH POLICE

MANAGEMENT GROUP CITY OF HERMOSA BEACH
Eric Cahalan, Police Captain Cynthia Stafford, Chief Negotiator Joe Poelstra, Acting Police Captain Steve Napolitano, Interim City Manager _________________________________
Mick Gaglia, Police Lieutenant Brandon Walker, Director of Administrative Services
_________________________________
Tiffany Nguyen, Human Resources
Manager

Police Management Group
July 1, 2025 – June 30, 2028
25 EXHIBIT A

Police Management Group
July 1, 2025 – June 30, 2028
26 EXHIBIT B

GRIEVANCE PROCEDURES
FOR

HERMOSA BEACH POLICE DEPARTMENT
I. Purpose of Grievance Procedures
A. To promote improved employee-employer relations by establishing grievance procedures on matters.

B. To provide that grievances shall be heard and settled as informally as possible.

C. To enable grievances to be settled promptly and/or as near to the point of origin as possible.

II. Definition
A grievance is defined as any dispute concerning the interpretation, intent or application of the written Memorandum of Understanding or departmental rules and regulations governing personnel practices or working conditions applicable to employees covered by the Memorandum of Understanding. An impasse in meeting and conferring upon the terms of a proposed Memorandum of Understanding is not a grievance.

III. Conduct of Grievance Procedure
A. An employee may request the assistance of another person of his own choosing in preparing and presenting of their grievance at any level of review, or may be represented by a recognized employee organization, or may represent himself.

B. The employee and his representative, if any, may use a reasonable amount of work time, as determined by the appropriate Division Commander, and a Police Management Group Board Representative, in conferring about and presenting a grievance.

C. Any grievance relating to the retroactive status of monetary or fiscal matters shall be limited to the date of filing of the grievance in writing, except in such cases where it would be impossible for the employee to have prior knowledge of an accounting error, or where the error is departmentally or City caused.

Police Management Group
July 1, 2025 – June 30, 2028
27 D. The time limits specified may be extended to a definite date by mutual agreement of the employee and the reviewer concerned.

E. Employees shall be free from reprisal for using the grievance procedure.

IV. Matters Subject to Grievance Procedure
Full-time employees having probationary or permanent status may process a personal grievance on one, or more than one, of the following grounds.

A. Improper application of rules, regulations and procedures.

B. Unfair treatment, including coercion, restraint, or reprisal.

C. Promotion procedures implemented unfairly.

D. Non-selection for training opportunities.

E. Discrimination because of race, religion, color, creed, or national origin.

F. Any matter affecting an employee’s affecting wages, hours or working conditions.

G. Discharge, demotion, or suspension of less than five (5) days. Suspensions of five (5) days or greater are governed by Rule XXX of the Hermosa Beach Personnel Rules.

H. Individual disputes over the intents or application of the provisions of the most recent officially signed agreement between the City and their recognized employee representatives.

I. Probationary employees may file grievances under all of the above, but not as applied to their performance rating or dismissal.

V. Grievance Procedure
Step One – Informal Process
An employee must attempt first to resolve a grievance through discussion with his immediate supervisor without undue delay on an informal basis. If, after such discussion, the employee does not believe the problem has been satisfactorily resolved, he shall have the right and obligation to discuss it with his supervisor’s immediate superior, if any, and his department head if necessary. Every effort shall be made to find an acceptable solution by these informal means at the most immediate level of supervision. At no time may the informal process go beyond the department head concerned. In order that this informal procedure may be

Police Management Group
July 1, 2025 – June 30, 2028
28 responsive, all parties involved shall expedite this process. In no case may more than fifteen (15) calendar days elapse from the date of the alleged incident or action and the resolutions of the grievance or completion of the informal process.

Said grievance shall be considered waived if not so presented to the immediate supervisor within fifteen (15) calendar days following the day during which the event upon which the grievance is based occurred.

Step Two – Formal Process – Management Supervisor
If the grievance is not resolved through the informal process, the employee shall have the right within ten (10) working days from the decision or completion of the informal process to file the grievance in writing on a specified form and present it to his Division Commander. The Division Commander shall discuss the grievance with the employee and shall render a decision and comments in writing and return them to the employee within ten (10) working days after receiving the grievance.

Failure of the grievant to serve such written notice ten (10) calendar days following the termination of the informal step shall constitute a waiver of the grievance.

Step Three – Formal Process – Department Head
If the grievance procedure is not resolved at Step 2 and the employee is notified in writing, the employee may, within the next ten (10) working days present the grievance in writing to the department head. In the event that no written response is given to the employee within ten (10) working days from the date of submission of the written grievance, the grievance will be assumed to have been valid and the employer will take steps to correct that problem. Failure of the employee to take appropriate action within the prescribed time periods will be deemed to constitute termination of the grievance. Failure of the employer to respond within the time provided will be deemed to be an admission as to the validity of the grievance and will require affirmative action to correct the grievance. The department head shall render his decision and comments in writing within ten (10) working days from the date of receipt of the grievance and return them to the employee within that time.

Step Four – Advisory Arbitration
A. If the grievance is not resolved in Step 3 the employee may within ten (10) working days, present the grievance in writing to the City Manager or his designate for processing. Failure of the employee to take this action within five (5) working days from the date of receipt of rejection of the grievance in Step 3 will be deemed to constitute a termination of the grievance.

B. The scope of the advisory arbitration of grievance shall include all of the greetable

Police Management Group
July 1, 2025 – June 30, 2028
29 matters as set forth in Section 4 of this procedure. An exception would be those matters that by the Hermosa Beach Personnel Rules must be adjudicated by the Hermosa Beach Civil Service Commission. All other grievances shall bypass Step 4 of the grievance procedure and go to the Step 5 procedures. An employee who chooses advisory arbitration shall be deemed to have made a choice between the Civil Service Board of Review and arbitration and, therefore, may not seek two hearings on the same grievance.

C. As soon as possible, and in any event not later than ten (10) working days after either party received written notice from the other of the desire to arbitrate, the parties shall agree upon an arbitrator unless external constraints prohibit compliance, whereupon the earliest date available shall apply.

D. Arbitrator shall be selected from a list of seven (7) arbitrators from a list provided by the State or Federal Mediation and Conciliation Service within two (2) working days. If a mutual agreement cannot be reached at a meeting of the two parties as to selection of an arbitrator, then each party shall strike off a name from the list on an alternating basis until one name remains which person shall become the arbitrator. The City shall have the first opportunity to strike a name from the list of (7) arbitrators. The priority of striking names shall alternate from one party to the other each time advisory arbitration is invoked by the same parties.

1. Any arbitrator appointed must be familiar with employee/management relations in public employment.

2. The arbitrator shall hold such hearings and conduct such proceedings as may be necessary, but such hearings and proceedings shall be conducted in an expeditious and confidential manner with the involved parties only. Employees called as witnesses shall be released from duty as needed.

3. The rules of conduct of proceedings shall be according to those procedures utilized by the Arbitration Service.

4. The findings of fact and the recommendations of the arbitrator shall be transmitted to the involved parties and the City Manager.

5. The fees and expenses, including the making of the record of the arbitrator, shall be borne equally by the parties, except attorney fees. Calling of the witnesses by either party shall be done with a reasonable amount of restraint.

An excessive use of witnesses will necessitate the cost of loss of work time to be paid by the party calling the witnesses. A decision of the arbitrator may be requested by either party as to whether there may have been an excessive use of witnesses.

Police Management Group
July 1, 2025 – June 30, 2028
30 6. The arbitrator shall have no power or alter, amend, change, add to, or subtract from any of the terms of the Memorandum of Understanding. The decision of the arbitrator shall be based solely upon the evidence and arguments presented to him by the respective parties in the presence of each other.

7. The decision of the arbitrator shall be advisory only.

Step Five – Final Process – City Manager
If the grievance cannot be resolved at Step 3, the employee may thereafter submit the matter to the City Manager or their properly appointed representative for the purposes of obtaining their review and settlement of the grievance. Thereafter the City Manager or their designated representative shall, in all non-arbitrable cases, review the matter and render a decision in writing to the parties within fifteen (15) calendar days from the date of receipt.

LABOR CONTRACTS AND

UNREPRESENTED EMPLOYEES

Through labor negotiations, the City strives to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market ensuring the ability to retain and attract a high-quality workforce that delivers a wide range of services to the community.

INTRODUCTION
The Meyers-Milias Brown Act requires that local public agencies negotiate with its respective bargaining units regarding wages, hours, and working conditions. Under direction from the City Council, the Council approved a City negotiating team that was tasked with negotiating a successor MOU with each of the City’s bargaining units for new terms. The Current MOU’s for the General and Supervisory Employees’ and the Police Management Group expired on June 30, 2025.

The City’s negotiating team met and conferred with representatives of the General and Supervisory Unit and the Police Management Group to discuss wages, hours, and other terms and conditions of employment contained in the successor MOU. The City and the Teamsters in June 2025 and the Teamsters membership ratified the MOU on July 9, 2025. PMG and the City reached agreement in July, and the MOU was ratified that same month.

INTRODUCTION
Outside of the City’s represented employees, Hermosa
Beach has an unrepresented group. These 5
unrepresented employees do not have a union and are
not entitled to bargain or meet and confer under the
MMBA for wages, hours and terms and conditions of
employment like represented employees.

21classifications and 51 employees:

Teamsters Membership

ACCOUNT CLERK

BUILDING & PLANNING TECHNICIAN

BUILDING INSPECTOR

CODE ENFORCEMENT OFFICER

COMMUNITY SERVICES OFFICER

ENGINEERING TECHNICIAN

EQUIPMENT MECHANIC

MAINTENANCE WORKER I

MAINTENANCE WORKER II

OFFICE ASSISTANT

POLICE SERVICE OFFICER

PUBLIC WORKS INSPECTOR

RECREATION SPECIALIST

SENIOR ACCOUNT CLERK

SENIOR OFFICE ASSISTANT

LEAD SPECIAL EVENTS AND FILIMING COORDINATOR

SPECIAL EVENTS AND FILMING COORDINATOR

CREW SUPERVISOR

SENIOR EQUIPMENT MECHANIC

COMMUNITY SERVICES FIELD SUPERVISOR

PMG
2 classifications and 4 employees:
• Police Lieutenant
• Police Captain
Unrepresented Employees
5 classification and employees:
• HR Manager
• Finance Manager
• EA to the City Manager
• HR Analyst
• Risk Analyst
Membership

TEAMSTERS MOU
Term: 3 years - July 1, 2025 - June 30, 2028

1. Wage Rate Increase (Article 31):
• 3% effective 7/1/25.
• 3% effective 7/1/26.
• 3% effective 7/1/27.
• Bring all classifications in the unit up to the median per Comp Study on 7/1/25.

2. Shift Differential (Article 35):
• Increase shift differential: Swing shift $1.00 per hour. Graveyard shift $1.25 per hour.

3. Training Premium Pay (Article 41):
• Increase to $3 per hour.

4. Health and Welfare (Article 50):
• No medical premium increases.
• City to pay for vision insurance, provided that after changing dental providers, the cost of the dental premium is reduced by at least 20%.
• $750 Cash In Lieu if opting out of insurance.

TEAMSTERS MOU

5. Bilingual Pay (Article 41):
• Reduce premium pay from 5% of salary to $100/month and remove cap.

7. Vacation (Article 42):

Increase vacation hours for tenured employees:
• 1st Year 80 hours
• 2nd Year 80 hours
• 4th Year 96 hours
• 6th Year 120 hours
• 10th Year 144 hours
• 14th Year 168 hours
• 18th Year 192 hours

8. Holidays (Article 21)
Add ½ Christmas Eve and ½ day NYE holiday and delete 10 hours flex time.

POLICE MANAGEMENT GROUP MOU
Term: 3 years - July 1, 2025 - June 30, 2028
Wage Rate Increase
• 3% effective 7/1/25
• 3% effective 7/1/26
• 3% effective 7/1/27
• Bring all classifications up to median 7/1/25
Education Incentives
Increase advanced POST Certificate percentage from 5% to 10% to mirror POA. Eligible to receive after 2 years in position of Lt. or Capt.

Longevity Pay
Mirror POA Language and add:

Eligible for 5% upon commencement of the fifth (5th) year (Not reportable to PERS, as PERS requires "exceeding of 5 years")

PMG MOU
Holidays
½ day (5 hours) Christmas Eve and ½ day (5 hours) New Year’s Eve and delete 10 hours holiday flex time.

Deferred Comp. Match
Increase deferred comp. match from $25/month to $50/month.

Uniform Allowance
Increase to $1,200 (currently $1,000)
Physical Fitness / Officer Wellness Incentive
• 10 hours of wellness time (non-cashable) upon submitting proof of an annual physical exam. • Up to $500 reimbursement for wellness memberships or fitness events. • Delete language on being able to work out for 30 mins on City time.

Vacation
Add the following to match POA:
• Commencing with the 18th year, at the rate of 184 hours/year. • Commencing with the 19th year, at the rate of 192 hours/year. • Commencing with the 20th year, at the rate of 200 hours/year.

UNREPRESENTED REPORT
Wages
• 3% effective 7/1/25
• 3% effective 7/1/26
• 3% effective 7/1/27
• Bring all classifications up to median 7/1/25
Premium Pay
$350 flat rate per month for job-related certification and $400 for master’s degree.

Wellness Reimbursement
$500
Deferred Comp
Increase to $50 per month

UNREPRESENTED REPORT
Deferred Comp. Match
Increase deferred comp. match from $25/month to $50/month.

Performance Bonus Correction
Add 3 classifications (HR Analyst, Risk Analyst, EA) to be eligible to match PAE and remove OT eligibility.

Add 5th step for HR Manager
Position was part of Management MOU but moved to Unrepresented in 2024. Only unrepresented position without a 5th step.

PAE SIDE LETTER
Vacation
Increase vacation hours for tenured employees:
• 6th Year 120 hours
• 10th Year 144 hours
• 14th Year 168 hours
• 18th Year 192 hours

Fiscal Impact
The total cost of the negotiated changes is estimated to be $1,489,780 for FY 2026-2028, which will be included in each subsequent year’s proposed budgets.

Recommendation
Staff recommends that the City of Hermosa Beach City Council approve the Resolution and successor Memoranda of Understanding between the City of Hermosa Beach and the General and Supervisory Employees’ Bargaining Unit, Teamsters, Local 986 and the Police Management Group for the period of July 1, 2025, through June 30, 2028.

Staff further recommends that the City of Hermosa Beach City Council approve the Resolution and Side Letter between the City of Hermosa Beach and the Professional and Administrative Employees and the Unrepresented Employees Salary and Benefits Resolution.

Cyndi Stafford, Human Resources
[email protected]
THANK YOU!

City of Hermosa Beach | Page 1 of 4
Meeting Date: August 26, 2025
Staff Report No. 25-AS-065
Honorable Mayor and Members of the Hermosa Beach City Council

ADOPT A RESOLUTION FOR WAGES AND EMPLOYMENT TERMS AND
CONDITIONS FOR UNREPRESENTED EMPLOYEES EFFECTIVE JULY 1, 2025 – JUNE 30, 2028
(Human Resources, Cynthia Stafford)
Recommended Action:

Staff recommends City Council adopt a Resolution (Attachment 1) approving wages and terms and conditions of employment in Exhibit A (Attachment 2) for the Unrepresented classifications for the Fiscal Years (FY) 2026-2028.

Executive Summary:

The City has a number of positions that are not represented by a labor association due to their access to confidential labor negotiations information. The City did meet with the unrepresented employees seeking input on wages and employment terms and conditions. While this was not a negotiation, the unrepresented employees’ requests were heard and evaluated by the City. The terms of the tentative agreements are summarized below.

The total estimated cost of the negotiated changes is $198,780 for FY 2026-2028.

Background:

The current Unrepresented Group Resolution expired on June 30, 2025. Under direction from the City Council, the Council-approved City negotiating team has been in negotiations with all of the City’s bargaining units and the Unrepresented Group for new terms.

The City’s aim through labor negotiations is to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market to retain and attract a highquality workforce to serve our community across a range of services. Most position classifications in the City are comparable to those in other municipalities. The City contracted with Reward Strategy Group to conduct a compensation study using eleven benchmark cities in the region for labor market comparisons.

The City’s negotiating team met all employees in the Unrepresented Group to discuss wages, hours, and other terms and conditions of employment contained in the Resolution that expired on June 30, 2025.

City of Hermosa Beach | Page 2 of 4
This bargaining unit consists of the following classifications:
• Finance Manager
• Human Resources Manager
• Human Resources Analyst
• Risk Management Analyst
• Executive Assistant to the City Manager
The parties have reached a tentative agreement within the authority provided by City Council and on the terms described below. The terms of the tentative agreement, set forth in the new Resolution and hereby submitted to the City Council for approval.

Discussion:

The tentative Resolution for the Unrepresented Group, includes the following terms:

1. Term. July 1, 2025 - June 30, 2028.

2. Wages. The parties agreed to the following salary increases over the next three years.

A. Effective July 1, 2025, the salary table shall be adjusted to bring all bargaining unit positions that are below market to median as determined by the 2024 Reward Strategy Group Salary Survey Results.

B. Effective July 1, 2025, and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3.0%).

C. Effective July 1, 2026, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3.0%).

D. Effective July 1, 2027, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3.0%).

3. Acting Pay. The parties agree to compensate an employee when they are assigned the full range of job duties for a higher-level classification. Such employee shall be eligible for Acting Pay after 80 consecutive hours of performing the additional duties and shall be placed on a step in the salary range of the position in which they are temporarily assigned that provides at least a 5% increase to their current salary. Any employee receiving Acting Pay shall not be eligible for Additional Duties Pay.

4. Additional Duties Pay. The parties agree to compensate an employee when they are temporarily assigned additional duties. Such employee shall be eligible for Additional Duties Pay of $400 per month after 80 consecutive hours of performing

City of Hermosa Beach | Page 3 of 4
the additional duties. Any employee receiving Additional Duties Pay shall not be eligible for Acting Pay.

5. Health and Welfare. Add a cash in lieu option of $750 per month if an employee waives health insurance through the City of Hermosa Beach and presents proof of medical coverage through a spouse or domestic partner.

6. Deferred Compensation. The parties agreed the City will match employee contributions up to $50 per month.

7. Bilingual Premium Pay. Decrease the bilingual premium pay from 5% of base pay to $100 per month and remove the limit of how many employees are eligible to receive the premium pay.

8. Vacation. Increase vacation hours in the following manner:
 6th Year: From 112 hour to 120 hours
 10th Year: From 128 hours to 144 hours
 14th Year: From 144 hours to 168 hours
 18th Year: From 160 hour to 192 hours

9. Holidays. Add half-day (5 hours) holiday on Christmas Eve and New Year’s Eve and delete Holiday Flex Time of ten (10) hours.

10. Management Leave. Increased by 10 hours annually from 70 to 80 hours.

Management Leave may not be cashed out or rolled over from one year to the next. Three classifications were added to Management Leave eligibility and are no longer eligible for overtime.

11. Education Incentive. Employees covered by this Resolution who obtain a master’s degree in public administration, or a related field, shall receive additional compensation of $400 per month. In addition, employees who possess an accredited professional certification related to their position with the City shall receive additional compensation of $350 per month, subject to approval of the City Manager. An employee shall only be eligible for one certification and master’s degree incentive, regardless of the number of professional certifications or degrees the employee possesses.

Fiscal Impact:

The total estimated cost of the negotiated changes is estimated to be $198,780 for FY 2026-2028. Staff will budget the applicable change in each subsequent fiscal year’s proposed budgets.

City of Hermosa Beach | Page 4 of 4
Attachments:

1. Draft Resolution

2. Terms and Conditions of Employment for Unrepresented Classifications Respectfully Submitted by: Cynthia Stafford, Human Resources Noted for Fiscal Impact: Henry Chao, Finance Manager
Concur: Brandon Walker, Administrative Services Director Legal Review: Todd Leishman, Interim City Attorney
Approved: Steve Napolitano, Interim City Manager

CITY OF HERMOSA BEACH
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH, CALIFORNIA, ADOPTING TERMS AND CONDITIONS OF

EMPLOYMENT FOR THE UNREPRESENTED GROUP
WHEREAS, employees of the City of Hermosa Beach, California in the Unrepresented Group have met with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and,
WHEREAS, Unrepresented Group and City of Hermosa Beach Chief Labor Negotiator have cooperatively agreed to changes to the Unrepresented Group Report; and,
WHEREAS, the Unrepresented Group and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Unrepresented Group Report.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Hermosa Beach resolves to approve a Resolution for the Unrepresented Group, to be effective for the period July 1, 2025, through and including June 30, 2028, and authorizes the City’s Chief Negotiator to sign the Report on behalf of the City.

SECTION 2. This resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted.

PASSED, APPROVED and ADOPTED on this 26
th day of August 2025.

Rob Saemann
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Todd Leishman
City Clerk Interim City Attorney

City of Hermosa Beach
Salary and Benefits for Unrepresented Classifications

THE FOLLOWING SALARY AND BENEFIT PROVISIONS APPLY TO EMPLOYEES IN

THE UNREPRESENTED CLASSIFICATIONS OF HUMAN RESOURCES MANAGER,

HUMAN RESOURCES ANALYST, RISK MANAGEMENT ANALYST, FINANCE

MANAGER, AND EXECUTIVE ASSISTANT TO THE CITY MANAGER

NON-DISCRIMINATION
The City and the employees covered by this Resolution agree not to discriminate against any employee or applicant because of hair texture and protective hairstyles (such as braids, locks, and twists), color, religious creed (including religious dress and religious grooming practices), national origin, ancestry, citizenship status, age (40 years and older), sex (including pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions), gender, gender identity and expression (including transgender identity and expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning (or is perceived to be transitioning), sexual orientation, sex stereotyping, marital status, domestic partner status, military service and veteran status, physical and/or mental disability (including HIV and AIDS), legally protected medical condition or information (including genetic information), protected medical leaves (requesting or approved), status as a victim of domestic violence, sexual assault, or stalking, enrollment in a public assistance program, their intersectionality of protected characteristics, or activity or any other basis protected by local, state, or federal laws. political affiliation, race, religion, color, sex, age, marital status, national origin, or handicap, and with proper regard for their privacy and constitutional rights as citizens. Additionally, the City expects and requires all employees to treat one another with dignity and respect. Harassment of other employees is a violation of law. No employment decision may be made based upon an employee’s submission to or rejection of such conduct. It is the responsibility of any employee who believes that they are the victim of such harassment to report the conduct to the supervisor, Department Director, Human Resources Manager or the City Manager in a timely manner.

WAGES
A. The salary table attached to this Report as Exhibit A shall be revised by increasing each amount as follows:

1. Effective July 1, 2025, the salary table shall be adjusted to bring all positions that are below market to median as determined by the 2025 Reward Strategy Group Salary Survey Results report as identified in the report.

Unrepresented Group Report 2025-2028

2. Effective July 1, 2025, and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3%).

3. Effective July 1, 2026, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3%).

4. Effective July 1, 2027, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3%).

STEP INCREASES
Salary steps for all classifications are “1” through “5”, each step to be one (1) year apart.

Step increases shall be effective at the beginning of the next pay period following the anniversary of their date of hire (1st or 16th of the month). To be eligible for a step increase, an employee must receive an overall evaluation of “meeting expectations” or better.

Generally, initial appointments shall be made at the "1” step. Upon the recommendation of the Department Director, and approval by the City Manager, an appointment may be made at a higher step.

MERIT PAY
A. The employees covered by this Resolution are eligible to receive Merit Pay for superior performance. Said bonus pay will be up to a maximum of +5% of the monthly base pay for six-month (bi-annual) increments. The two bi-annual periods are July 1 – December 31 and January 1 – June 30.

B. In order for an employee to receive Merit Pay, the Department Director and employee shall agree to specific goals to achieve for each bi-annual period. At the end of the reporting period, the employee shall provide a detailed outline of the goals that have been met. Based on this documentation, the Director shall determine if the employee is eligible for the Merit Pay, either in full (5%) or a lesser amount. Achieving any of the goals equates to performance over and above standard performance and is recognized as superior performance as it relates to these goals. The Bonus Pay will be included in the pay period following the period that is being evaluated provided that the detailed outline of goals met is received in a timely manner. The parties understand that bonus pay in these amounts is reportable to the California Public Employees Retirement System (CalPERS) as employee compensation and thus be “PERSable” to the extent permissible by law.

C. The scale is as follows:
 5%Superior Performance Bonus (employee met nearly 100% of the goals)

Unrepresented Group Report 2025-2028

 4%Superior Performance Bonus (employee met at least 80% of the goals)  3%Superior Performance Bonus (employee met at least 60% of the goals)  2%Superior Performance Bonus (employee met at least 40% of the goals)  1%Superior Performance Bonus (employee met at least 20% of the goals) The Performance Bonus may be prorated if an employee voluntarily leaves the City before the end of the rating period or becomes a member of the Unrepresented Group after the start of the rating period. Prorating the Performance Bonus is at the discretion of the City Manager.

For salary comparison purposes, base salary shall be increased by 3.75% (75% of maximum Bonus Pay) to adjust for Bonus Pay eligibility for those classes eligible.

DEFERRED COMPENSATION
A. Each employee, individually, may elect to participate in the Deferred Compensation Plans established and adopted by the City of Hermosa Beach.

B. Upon the first pay period after Council adoption of this Resolution, the City shall match the employee’s contribution up a maximum of fifty dollars ($50) per month.

EDUCATIONAL ALLOWANCE
A. City agrees that employees who desire to enroll in training, certification programs, and/or academic courses at a State of California approved and/or recognized college or university that may provide the employee with general or specific skills and/or knowledge that contributes to their ability to perform their current position or enhances promotional opportunities shall have their course fees, books and tuition (up to CSU rates) paid by the City in advance, subject to approval of the City Manager. The employee will reimburse the City for all expenses incurred for any class or classes the employee fails or does not complete; or if the employee voluntarily leaves City employment during the period they are enrolled and received payment.

B. Employees who attend a non-CSU campus will receive up to the average tuition rate of CSULB, CSUDH & CSULA. Employees may be reimbursed for the renewal of certifications and/or professional licenses that are job-related, subject to the approval of Human Resources and the City Manager.

C. Advancement of tuition shall be on a pro-rated basis depending upon the number of hours an employee covered by this Resolution is normally scheduled to work (i.e. full time @ 100% reimbursement, up to CSU rates; half time @ 50% reimbursement, etc.).

Unrepresented Group Report 2025-2028

EDUCATION INCENTIVE
A. Employees covered by this Resolution who obtain a master’s degree in public administration, or a related field, shall receive additional compensation of $400 per month. An employee shall only be eligible for one master’s degree incentive, regardless of the number of master’s degrees the employee possesses.

B. Employees covered by this Resolution who possess an accredited professional certification related to their position with the City shall receive additional compensation of $350 per month, subject to approval of the City Manager. An employee shall only be eligible for one certification incentive (such as a Certified Public Accountant incentive and “PERSable” as applicable), regardless of the number of professional certifications the employee possesses.

ACTING PAY
Employees covered by this Agreement who are temporarily assigned to a higher classification because of emergency conditions, Sick Leave, Vacation and/or vacancy shall receive the higher rate of pay commencing after eighty (80) consecutive hours of such assignment. Employee shall be placed on a step in the salary range of the position in which they are temporarily assigned that provides at least a 10% increase to their current salary.

A. The parties understand that these amounts shall be reported to PERS as compensation and shall be “PERSable.”
B. In accordance with Gov. Code Section 20480, if an employee is placed in an Acting position that is vacant as a result of a vacancy, the hours worked by the employee shall be reported to PERS and shall not exceed 960 hours in a fiscal year.

ADDITIONAL DUTIES PAY
When an employee is officially determined by their Department Director and the City Manager to be temporarily performing additional duties outside of their classification, such employee shall be eligible for Additional Duties Pay of $400 per month. Eligibility for the additional pay shall commence after 80 consecutive hours of such assignment. An employee is eligible for Additional Duties Pay for six (6) months or until they are no longer performing the duties. If the employee is still performing the duties after six (6), the City shall make every effort to reassign the additional duties to another eligible employee.

Any employee receiving Acting Pay shall not be eligible for Additional Duties Pay.

BILINGUAL PAY
A. The City agrees to pay a monthly premium of $100 per month to full-time employees who have demonstrated proficiency/fluency in a second language which has been

Unrepresented Group Report 2025-2028

demonstrated to be of value to the City in providing customer service. This compensation will be paid to employees who are routinely and consistently assigned to positions requiring communication skills in languages other than English. This amount shall be reported to PERS as compensation and shall be “PERSable.” B. An employee receiving Bilingual Skill Premium will be called upon to assist in any department within the City on an “as needed basis” to provide interpretation services.

Individuals receiving a Bilingual Skill Premium may periodically be subject to call-out or be required to work in excess of their regular schedule.

C. Employees with bilingual ability will be tested for oral skill in the designated language through an examination process as determined by the Human Resources Manager.

Applicants must successfully pass the examination to be eligible for Bilingual Skill Premium.

VACATION
A. It is agreed that the unrepresented classifications covered by this Resolution shall accrue vacation as follows commencing with the start of the service year:

Years of Service Accrued Per Year
1 st – 3rd Years 80 Hours
4 th – 5th Years 96 Hours
6 th – 9th Years 120 Hours
10th – 13th Years 144 Hours
14th – 17th Years 168 Hours
18th Year 192 Hours
B. Employees may use (subject to Department Director’s approval) one (1) week of vacation six (6) months after hire date (after halfway point of probationary period).

C. Vacation may be accrued up to thirty (30) month accrual level, with an automatic cashout of hours in excess of that amount. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th.

D. Employees shall be reimbursed for 100% unused vacation days accrued upon resignation, retirement or imposed termination from their employment with the City.

EXEMPTION FROM THE FLSA
The classifications covered by this Resolution have been determined to be exempt from overtime as defined in the Fair Labor Standards Act (FLSA) and as FLSA applies to public agency employees. As such, these classifications shall not be eligible to accrue compensatory time or be paid overtime.

Unrepresented Group Report 2025-2028

MANAGEMENT LEAVE
Employees covered by this Resolution shall receive eighty (80) hours of Management Leave each calendar year. Management Leave does not accumulate or carry over; it must be used each year. Said leave shall have no monetary value and shall be prorated for partial years’ service upon initial appointment.

SICK LEAVE
A. Employees shall accrue sick leave at the rate of ten (10) hours per month. After 200 hours are accrued, an employee may cash out annually up to a maximum of 96 hours at the employee’s regular rate of pay at 100% rate. In lieu of cash out, employees may convert up to a maximum of 96 hours to vacation time provided that the vacation bank does not exceed allowed maximum level. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th.

B. Sick leave shall be used only in case of sickness or disability of the employee or for family sick leave. Misuse of sick leave shall be grounds for disciplinary action.

C. In case of serious illness of a member of the immediate family, the employee may utilize sick leave. Immediate family for the purpose of this Section shall be defined as: spouse, child, stepchild, parent, stepparent, parent-in-law, brother, sister, grandparents, grandchildren, any relative not previously listed who lives in the same household as the employee, and a domestic partner of the employee.

D. Any employee claiming a domestic partner, for purposes of this Agreement shall complete a confidential affidavit to be filed in the Human Resources Office, which shall be signed by the employee only, declaring the existence of a domestic partnership with a named domestic partner. By extending to a domestic partner employee the specific benefits defined by this Resolution, the City does not intend to confer or imply any other unspecified benefits to such employee, or to any other person who may hold the status of domestic partner.

E. Employees may, upon resignation or retirement from their employment with the City, elect to be paid for unused sick leave accrued prior to June 30, 2017, at their current rate of pay. Except as provided in A above, unused sick leave accrued after June 30, 2017, shall not be cashed out. Pursuant to Government Code § 20965, related CalPERS, rules and the City’s contract with CalPERS, upon retirement from City employment, an employee’s unused accumulated sick leave at the time of retirement may be converted to additional service credit.

F. Employees shall be eligible to use accrued sick leave during their probationary period.

Unrepresented Group Report 2025-2028

BEREAVEMENT LEAVE
A. Each employee covered by this Resolution shall receive a maximum of forty (40) paid hours per occurrence to be utilized for Bereavement Leave because of a death in their immediate family.

B. Immediate family for the purposes of this section shall be defined as: domestic partner, father; mother; father-in-law; mother-in-law; brother; sister; spouse; child, stepchild. stepfather, stepmother, grandparent, grandchild or legal dependent. Employees may pre-designate and substitute other Members defined as “immediate family.” The intent of this provision is not to expand the number of persons included in the definition of “immediate family” or to increase paid leave opportunities, but rather to recognize variation in family structure (e.g. stepmother for mother).

C. Bereavement Leave shall be taken within twelve (12) months of the death and does not need to be consecutive nor will pay in lieu of unused leave for bereavement be provided.

D. One (1) additional unpaid shift shall be granted to the employee upon request.

JURY DUTY
If called for jury duty in a Municipal, Superior, or Federal Court, or for a Coroner’s Jury, employees covered by this Resolution shall remain in their regular pay status in accordance with the City’s Administrative Policy on Jury Pay. All jury fees except mileage reimbursement shall be returned to the City.

MILITARY LEAVE
All employees covered by this Resolution shall be entitled to Military Leave as afforded by Federal and State law but shall not receive any base salary pay while on such Leave, except as required by law
.

HOLIDAYS
A. Employees shall receive 120 hours per year for the following holidays off with pay:

New Year’s Day; Martin Luther King, Jr.’s Birthday; President’s Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veterans Day; Thanksgiving Day; half-day (5 hours) Christmas Eve; Christmas Day half-day New Year’s Eve (five hours).

B. When a holiday falls on a normal day off, Employees shall receive Holiday Compensation Time. Employees covered by this Agreement may accrue up to 100 hours of Holiday Compensation Time for those holidays in which compensatory time is earned. However, when a holiday falls on a Sunday, it will be observed on the following Monday. For all holidays that fall on a Friday or

Unrepresented Group Report 2025-2028

Saturday, City Hall offices will be open regular hours on Monday and employees will receive compensatory time. The City will provide a holiday schedule prior to January 1st of each year.

RETIREMENT
A. Tier I. The City provides the PERS 2% at 55 Plan with one year final compensation to employees hired before July 1, 2011.

Member Contribution: Each employee in this Tier shall pay the full seven percent (7%) PERS member contribution
B. Tier II. For new employees hired after July 1, 2011, the PERS retirement benefit formula shall be the 2% @ 60 plan, with retirement benefits calculated on one year final compensation.

Member Contribution: Each employee in this Tier shall pay the full seven percent (7%) PERS member contribution
C. Tier III. Employees hired on or after January 1, 2013, shall be subject to the Public Employee Pension Reform Act, (“PEPRA”; Assembly Bill 340) including but not limited to:

1. 2% at 62 retirement formula for those who are “new members” as that term is defined in AB 340.

2. Such new members shall pay to PERS by payroll deduction 50% of the “normal cost” as defined in AB 340 or the then current contribution rate of similarly situated employees, whichever is greater, as required by new Government Code section 7522.30(c).

D. Employees who retire after July 1, 2006, and were hired before July 1, 2018, shall be eligible, upon service retirement from the City, for a medical premium supplement.

Said supplement shall be in the following amount:

1. The City will contribute 5% of the health insurance premium for each year of service with the City of Hermosa Beach up to the lesser of the single person lowest costing HMO premium or $500 per month. A retiring employee must have completed a minimum of ten (10) years of service with the City of Hermosa Beach and be at least fifty-five (55) years of age to be eligible for this benefit.

2. Said supplement shall commence with the first month following the employee’s service retirement in which the employee is responsible for payment of the insurance premium.

Unrepresented Group Report 2025-2028

3. In order to be eligible for medical supplemental payments, an employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan.

4. Retirees who are eligible for a supplement but who are not covered by the City’s insurance policy are still eligible to receive their supplement. Payments will only be made when the retiree provides proof of coverage of insurance and proof of the amount paid for said coverage. Proof of coverage and the amount paid must be provided to the City within 60 days. The City will not provide retroactive reimbursement for payments not documented within 60 days of payment.

5. Any employee receiving a benefit under this section agrees to apply for, and enroll in, any Federal and/or State medical insurance plan (e.g. Medicare, Medicaid) for which they become eligible.

6. The City’s payments will end with the month in which the employee reaches the eligibility of Federal and/or State medical insurance plans (i.e. Medicare), currently 65 years of age.

E. Employees who are hired after July 1, 2018, shall be eligible, upon service retirement from the City at age sixty (60) with a minimum of twenty (20) continuous City service, for a medical premium supplement. Said supplement shall be paid as follows:

1. The City shall pay a $400.00 per month medical supplement that shall commence with the first month following the Employee’s service retirement in which the Employee is responsible for payment of the insurance premium.

2. The City’s payments will end with the month in which the employee reaches the eligibility of Federal and/or State medical insurance plans (i.e. Medicare), currently 65 years of age.

HEALTH AND WELFARE
A. The City agrees to establish and maintain a Cafeteria Plan in accordance with the provisions of Section 125 of the Internal Revenue Code. The purpose of the Plan is to allow eligible employees to elect to pay for qualified benefits on a pre-tax basis, to the extent permitted by law.

The Cafeteria Plan shall permit pre-tax deductions for the following qualified benefits, subject to IRS regulations and plan design:

1. Health insurance premiums (including medical, dental, and vision coverage).

2. Health Flexible Spending Accounts (FSA).

3. Dependent Care Assistance Plans (DCAP).

Unrepresented Group Report 2025-2028

4. Any other qualified benefit permitted under Section 125 and approved by the City.

B. The City shall make available for employees the following insurance plans: Health, Dental, Short and Long-Term Disability, Vision and Psychological Health. Current Health, Dental, Short and Long-Term Disability, Vision, Psychological Health, or their equivalent, to remain in force during the term of this Resolution.

C. For life insurance, the City shall provide and pay the premiums for a Life Insurance policy for each employee, payable in an amount equal to the individual’s annual salary upon such employee’s death.

D. For disability insurance, the City will provide and pay the premiums for Short and Long Term Disability for each employee.

E. For medical/health insurance, the City’s maximum contribution toward medical insurance for each employee’s selected plan and level of coverage will be $1,875.39.

Employees choosing a medical insurance plan and/or coverage level with a monthly premium that exceeds the City’s maximum contribution shall pay the difference by pre-tax payroll deduction.

F. An employee who demonstrates proof of medical insurance coverage available through a spouse or domestic partner may receive a cash payment of $750.00 per month in lieu of City provided coverage.

1. An employee who receives cash in-lieu of selecting a health insurance plan shall have the amount reported as earned income for tax purposes but shall not be deemed earned income for retirement purposes. It is the understanding of the parties that dollars distributed to the employee as cash in this manner shall not be construed as earned income for PERS purposes.

G. For dental insurance, the City shall pay the monthly premium contribution for full family PPO coverage for dental insurance, currently $226.30.

H. For psychological health, the City will continue to pay for full family coverage for the benefit.

I. The full cost of the Vision Insurance shall be borne by the employee.

1. During the Term of this MOU, the City intends to review its dental and vision providers for the purpose of providing quality care for a reasonable price. If the City changes providers and the cost of the dental premium is reduced by at least 20%, the City will bear the cost of lowest cost vision plan for the employee + 2 or more dependents.

Unrepresented Group Report 2025-2028

SHORT AND LONG TERM DISABILITY
A. The City’s Short and Long-Term Disability (STD) Insurance Plan begins after a 7-day waiting period. The maximum benefit is 66 2/3% of earnings up to a maximum of $1,698 per week. The City’s Long Term Disability Insurance Plan provides 66 2/3% of earnings has a maximum benefit of $9,000 per month and begins after 90 days of disability or the date STD benefits end, whichever is later.

B. Employees are eligible to coordinate their Short and Long-Term Disability Insurance with paid compensated time-off work to be paid up to 100% of regular take-home pay.

C. An employee utilizing the Short- or Long-Term Disability Plan shall not accrue Vacation, Sick Leave, Holiday Pay or allowances after the 30th calendar day after disability.

FAMILY AND MEDICAL CARE LEAVE
As required by State and Federal law, the City will provide Family and Medical Care Leave for eligible employees. The City maintains a FMLA/CFRA/PDL procedure which governs Family and Medical Care Leave, which is provided to all employees at the start of their employment and on the City’s Intranet site.

LAYOFF
A. It is mutually agreed that whenever, in the judgment of the City Council, it becomes necessary to abolish a position in the interest of economy or because the necessity for the position no longer exists, the City Council may abolish any position or employment in the competitive service and the City Manager shall layoff, demote or transfer employees thereby affected.

B. The criterion used in determining the order of separation shall be seniority, pursuant to the Personnel Rules and Regulations, Rule XXXII.

C. The City will endeavor to provide each affected Employee as much notice as possible, with a minimum thirty (30) day advance notice to each affected Employee.

GRIEVANCES / APPEAL OF DISCIPLINE
This Grievance Procedure shall be used to resolve disputes arising from any allegation that the City has violated the terms of this Resolution.

A. The complaint shall be presented in writing to the Department Director. The Director shall have five (5) working days of receipt of the complaint to resolve the issue or respond to it in writing stating the reasons for the failure to resolve it.

Unrepresented Group Report 2025-2028

B. If not resolved, the complaint shall be presented in writing to the City Manager. The City Manager shall have five (5) working days of receipt of the complaint to resolve the issue or respond to it in writing stating the reasons for the failure to resolve it.

C. Grievances regarding the provisions contained within this resolution not settled following the City Manager’s determination and that either party desires to contest further, may be submitted to arbitration as provided in this article provided however that said Request for Arbitration shall be made within twenty (20) calendar days of the City Manager’s determination
D. As soon as possible and in any event not later than fourteen (14) calendar days after either party received written notice from the other of the desire to arbitrate, the parties shall agree upon an arbitrator. If no Agreement is reached within said fourteen (14) calendar days, an arbitrator shall be selected from a list of seven (7) arbitrators submitted by the State or Federal Mediation and Conciliation Service by alternate striking of names until one name remains. The party who strikes the first name from the panel shall be determined by lot.

E. Either the City or the Employee may call any employee as a witness, and the City agrees to release said witness from work if he/she is on duty.

F. The arbitrator shall have no power to alter, amend, change, add to or subtract from any of the terms of this resolution. The decision of the arbitrator shall be based solely upon the evidence and arguments presented to him by the respective parties in the presence of each other.

G. The decision of the arbitrator within the limits herein prescribed shall be advisory only.

H. The arbitrator may hear and determine only one grievance at a time without the express agreement of the City and employee. The parties shall share equally the expense of the cost of the arbitration, with the exception of counsel's fees.

I. Appeals of Discipline equivalent to a suspension of four (4) days or less shall be governed by the provisions of Article 57. Appeals of discipline equivalent to five (5) days or more are governed by Article XXX of the City of Hermosa Beach Personnel Rules and Regulations.

INDUSTRIAL INJURY OR ILLNESS
A. It is understood that the City will provide medical facilities to be used for industrial accidents or illness.

B. Employees will be seen and treated by medical professionals that are part of the Medical Provider Network, unless an employee has pre-designated a physician,

Unrepresented Group Report 2025-2028

C. An employee who suffers an injury-on-duty will continue to have payment of the City portion of all Health Insurance premiums paid for a period of seven (7) full months commencing with the month in which the injury occurred.

D. Nothing herein shall prevent an employee from utilizing their accrued time in lieu of receiving temporary disability payments under the provisions of the Workers’ Compensation laws of the State of California.

ME TOO CLAUSE
If any bargaining unit in the City of Hermosa Beach, except the Police Officer’s Association and the Police Management Association, receive additional increases to the proposed cost of living increases as described in the Wages Article or other benefits, the City agrees to provide the same such increases and improvements to the employees covered by this Resolution.

The provision of this paragraph shall expire on and not be effective after June 30, 2028.

Unrepresented Group Report 2025-2028

ATTACHMENT A

LABOR CONTRACTS AND

UNREPRESENTED EMPLOYEES

Through labor negotiations, the City strives to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market ensuring the ability to retain and attract a high-quality workforce that delivers a wide range of services to the community.

INTRODUCTION
The Meyers-Milias Brown Act requires that local public agencies negotiate with its respective bargaining units regarding wages, hours, and working conditions. Under direction from the City Council, the Council approved a City negotiating team that was tasked with negotiating a successor MOU with each of the City’s bargaining units for new terms. The Current MOU’s for the General and Supervisory Employees’ and the Police Management Group expired on June 30, 2025.

The City’s negotiating team met and conferred with representatives of the General and Supervisory Unit and the Police Management Group to discuss wages, hours, and other terms and conditions of employment contained in the successor MOU. The City and the Teamsters in June 2025 and the Teamsters membership ratified the MOU on July 9, 2025. PMG and the City reached agreement in July, and the MOU was ratified that same month.

INTRODUCTION
Outside of the City’s represented employees, Hermosa
Beach has an unrepresented group. These 5
unrepresented employees do not have a union and are
not entitled to bargain or meet and confer under the
MMBA for wages, hours and terms and conditions of
employment like represented employees.

21classifications and 51 employees:

Teamsters Membership

ACCOUNT CLERK

BUILDING & PLANNING TECHNICIAN

BUILDING INSPECTOR

CODE ENFORCEMENT OFFICER

COMMUNITY SERVICES OFFICER

ENGINEERING TECHNICIAN

EQUIPMENT MECHANIC

MAINTENANCE WORKER I

MAINTENANCE WORKER II

OFFICE ASSISTANT

POLICE SERVICE OFFICER

PUBLIC WORKS INSPECTOR

RECREATION SPECIALIST

SENIOR ACCOUNT CLERK

SENIOR OFFICE ASSISTANT

LEAD SPECIAL EVENTS AND FILIMING COORDINATOR

SPECIAL EVENTS AND FILMING COORDINATOR

CREW SUPERVISOR

SENIOR EQUIPMENT MECHANIC

COMMUNITY SERVICES FIELD SUPERVISOR

PMG
2 classifications and 4 employees:
• Police Lieutenant
• Police Captain
Unrepresented Employees
5 classification and employees:
• HR Manager
• Finance Manager
• EA to the City Manager
• HR Analyst
• Risk Analyst
Membership

TEAMSTERS MOU
Term: 3 years - July 1, 2025 - June 30, 2028

1. Wage Rate Increase (Article 31):
• 3% effective 7/1/25.
• 3% effective 7/1/26.
• 3% effective 7/1/27.
• Bring all classifications in the unit up to the median per Comp Study on 7/1/25.

2. Shift Differential (Article 35):
• Increase shift differential: Swing shift $1.00 per hour. Graveyard shift $1.25 per hour.

3. Training Premium Pay (Article 41):
• Increase to $3 per hour.

4. Health and Welfare (Article 50):
• No medical premium increases.
• City to pay for vision insurance, provided that after changing dental providers, the cost of the dental premium is reduced by at least 20%.
• $750 Cash In Lieu if opting out of insurance.

TEAMSTERS MOU

5. Bilingual Pay (Article 41):
• Reduce premium pay from 5% of salary to $100/month and remove cap.

7. Vacation (Article 42):

Increase vacation hours for tenured employees:
• 1st Year 80 hours
• 2nd Year 80 hours
• 4th Year 96 hours
• 6th Year 120 hours
• 10th Year 144 hours
• 14th Year 168 hours
• 18th Year 192 hours

8. Holidays (Article 21)
Add ½ Christmas Eve and ½ day NYE holiday and delete 10 hours flex time.

POLICE MANAGEMENT GROUP MOU
Term: 3 years - July 1, 2025 - June 30, 2028
Wage Rate Increase
• 3% effective 7/1/25
• 3% effective 7/1/26
• 3% effective 7/1/27
• Bring all classifications up to median 7/1/25
Education Incentives
Increase advanced POST Certificate percentage from 5% to 10% to mirror POA. Eligible to receive after 2 years in position of Lt. or Capt.

Longevity Pay
Mirror POA Language and add:

Eligible for 5% upon commencement of the fifth (5th) year (Not reportable to PERS, as PERS requires "exceeding of 5 years")

PMG MOU
Holidays
½ day (5 hours) Christmas Eve and ½ day (5 hours) New Year’s Eve and delete 10 hours holiday flex time.

Deferred Comp. Match
Increase deferred comp. match from $25/month to $50/month.

Uniform Allowance
Increase to $1,200 (currently $1,000)
Physical Fitness / Officer Wellness Incentive
• 10 hours of wellness time (non-cashable) upon submitting proof of an annual physical exam. • Up to $500 reimbursement for wellness memberships or fitness events. • Delete language on being able to work out for 30 mins on City time.

Vacation
Add the following to match POA:
• Commencing with the 18th year, at the rate of 184 hours/year. • Commencing with the 19th year, at the rate of 192 hours/year. • Commencing with the 20th year, at the rate of 200 hours/year.

UNREPRESENTED REPORT
Wages
• 3% effective 7/1/25
• 3% effective 7/1/26
• 3% effective 7/1/27
• Bring all classifications up to median 7/1/25
Premium Pay
$350 flat rate per month for job-related certification and $400 for master’s degree.

Wellness Reimbursement
$500
Deferred Comp
Increase to $50 per month

UNREPRESENTED REPORT
Deferred Comp. Match
Increase deferred comp. match from $25/month to $50/month.

Performance Bonus Correction
Add 3 classifications (HR Analyst, Risk Analyst, EA) to be eligible to match PAE and remove OT eligibility.

Add 5th step for HR Manager
Position was part of Management MOU but moved to Unrepresented in 2024. Only unrepresented position without a 5th step.

PAE SIDE LETTER
Vacation
Increase vacation hours for tenured employees:
• 6th Year 120 hours
• 10th Year 144 hours
• 14th Year 168 hours
• 18th Year 192 hours

Fiscal Impact
The total cost of the negotiated changes is estimated to be $1,489,780 for FY 2026-2028, which will be included in each subsequent year’s proposed budgets.

Recommendation
Staff recommends that the City of Hermosa Beach City Council approve the Resolution and successor Memoranda of Understanding between the City of Hermosa Beach and the General and Supervisory Employees’ Bargaining Unit, Teamsters, Local 986 and the Police Management Group for the period of July 1, 2025, through June 30, 2028.

Staff further recommends that the City of Hermosa Beach City Council approve the Resolution and Side Letter between the City of Hermosa Beach and the Professional and Administrative Employees and the Unrepresented Employees Salary and Benefits Resolution.

Cyndi Stafford, Human Resources
[email protected]
THANK YOU!

City of Hermosa Beach | Page 1 of 4
Meeting Date: August 26, 2025
Staff Report No. 25-AS-057
Honorable Mayor and Members of the Hermosa Beach City Council

ADOPT A RESOLUTION TO APPROVE A MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF HERMOSA BEACH AND THE GENERAL AND
SUPERVISORY EMPLOYEES’ BARGAINING UNIT, TEAMSTERS LOCAL 986, EFFECTIVE JULY 1, 2025 – JUNE 30, 2028
(Human Resources, Cynthia Stafford)
Recommended Action:

Staff recommends City Council adopt a Resolution (Attachment 1) approving the Memorandum of Understanding (MOU) between the City of Hermosa Beach and the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986 (Teamsters) (Attachment 2) for the Fiscal Years (FY) 2026-2028.

Executive Summary:

Negotiations for a successor to the Memorandum of Understanding (MOU) between the City and the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, have resulted in a tentative agreement. The City and the Hermosa Beach General and Supervisory Employees’ Bargaining Unit met and conferred in accordance with the Meyers-Milias Brown Act and have reached a tentative agreement on the terms and conditions of employment. The terms of the tentative agreements are summarized below.

The total estimated cost of the negotiated changes is $961,000 from FY 2026 to FY 2028.

Background:

The Meyers-Milias Brown Act requires that local public agencies negotiate with its respective bargaining units regarding wages, hours, and working conditions. Agreements with the City’s bargaining units expired at the end of June and, under direction from the City Council, the Council approved City negotiating team has been in negotiations with each of the bargaining units for new terms.

The City’s aim through labor negotiations is to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market to retain and attract a highquality workforce to serve our community across a range of services. Most position classifications in the City are comparable to those in other municipalities. The City contracted with Reward Strategy Group to conduct a compensation study using eleven benchmark cities in the region for labor market comparisons.

City of Hermosa Beach | Page 2 of 4
The City’s negotiating team met and conferred with representatives of the and the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, to discuss wages, hours, and other terms and conditions of employment contained in the MOU that expired on June 30, 2025.

This bargaining unit consists of the following classifications:

Account Clerk
Building and Planning Technician
Building Inspector
Code Enforcement Officer
Community Services Field Supervisor
Community Services Officer
Engineering Technician
Equipment Mechanic
Lead Special Events and Filming Coordinator
Maintenance I
Maintenance II
Office Assistant
Police Services Officer
Police Service Officer Supervisor
Public Works Inspector
Retitled TBD from Crew Supervisor
Recreation Specialist
Senior Equipment Mechanic
Senior Account Clerk
Senior Office Assistant
Special Events and Filming Coordinator
The parties have reached a tentative agreement within the authority provided by City Council and on the terms described below. The membership of the General and Supervisory Employees’ Bargaining Unit met and ratified the terms of the tentative agreement on July 9, 2025, set forth in the new MOU, hereby submitted to the City Council for approval.

Discussion:

The tentative MOU between the City and the and the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, include the following negotiated terms:

1. Term of the agreement to be July 1, 2025 - June 30, 2028.

City of Hermosa Beach | Page 3 of 4

2. Article 30 - Wage Rate. The parties agreed to the following salary increases over the next three years.

A. Effective July 1, 2025, the salary table shall be adjusted to bring all bargaining unit positions that are below market to median as determined by the 2024 Reward Strategy Group Salary Survey Results.

B. Effective July 1, 2025, and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3.0%).

C. Effective July 1, 2026, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3.0%).

D. Effective July 1, 2027, and after the implementation of median adjustments, where applicable, the salary table for all classifications shall be increased by three percent (3.0%).

3. Article 23 - Deferred Compensation. The parties agreed the City will match employee contributions up to $25.00 per month.

4. Article 29 – Uniforms. Increase the uniform allowance by $10 each month.

5. Article 35 – Shift Differential. Increase the Swing shift differential to $1.00 per hour and the Graveyard shift differential to $1.25 per hour.

6. Article 37 – Additional Duties Pay. The parties agree to compensate an employee when they are temporarily assigned additional duties. Such employee shall be eligible for Additional Duties Pay of $400 per month after 80 consecutive hours of performing the additional duties. Any employee receiving Acting Pay shall not be eligible for Additional Duties Pay.

7. Article 41(A) – Training Premium Pay. Increase amount to $3 per hour when assigned to be a trainer.

8. Article 41(D) – Bilingual Premium Pay. Decrease the bilingual premium pay from 5% of base pay to $100 per month and remove the limit of how many employees are eligible to receive the premium pay.

9. Article 42 – Vacation. Increase vacation hours in the following manner:
 6th Year: From 112 hour to 120 hours
 10th Year: From 128 hours to 144 hours
 14th Year: From 144 hours to 168 hours
 18th Year: From 160 hour to 192 hours

City of Hermosa Beach | Page 4 of 4

10. Article 48 – Holidays. Add half-day (5 hours) holiday on Christmas Eve and New Year’s Eve and delete Section C, Holiday Flex Time of ten (10) hours.

11. Article 50 – Health and Welfare. Add a cash in lieu option of $750 per month if an employee waives health insurance through the City of Hermosa Beach and presents proof of medical coverage through a spouse or domestic partner.

12. Article 55 – Reopeners/Me-Too Clause. The parties agree that if the City provides COLA increases or other benefits to other civilian bargaining units greater than provided to the General and Supervisory Employees’ Bargaining Unit, the Unit will be eligible for the higher COLA.

Fiscal Impact:

The total FY 2026 to FY 2028 cost of the negotiated changes is estimated to be $961,000.

Staff will budget the applicable change in each subsequent fiscal year’s proposed budgets.

Attachments:

1. Draft Resolution

2. The General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, MOU
Respectfully Submitted by: Cynthia Stafford, Human Resources Noted for Fiscal Impact: Henry Chao, Finance Manager
Concur: Brandon Walker, Administrative Services Director Legal Review: Todd Leishman, Interim City Attorney
Approved: Steve Napolitano, Interim City Manager

CITY OF HERMOSA BEACH
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF

UNDERSTANDING WITH THE GENERAL AND SUPERVIOSRY
EMPLOYEES’ BARGAINING UNIT, TEAMSTERS LOCAL 986
WHEREAS, employees of the City of Hermosa Beach, California represented by the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and,
WHEREAS, the above bargaining unit has selected certain individuals to represent them; and,
WHEREAS, General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding which has been ratified by a majority vote of the members of the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986; and,
WHEREAS, the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Memorandum of Understanding.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Hermosa Beach resolves to enter into a Memorandum of Understanding with the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, to be effective for the period July 1, 2025, through and including June 30, 2028, and authorizes the City’s Chief Negotiator to sign the Memorandum of Understanding on behalf of the City.

SECTION 2. This resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted.

PASSED, APPROVED and ADOPTED on this 26
th day of August 2025.

Rob Saemann
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Todd Leishman
City Clerk Interim City Attorney

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF HERMOSA BEACH
AND

CALIFORNIA TEAMSTERS PUBLIC, PROFESSIONAL
AND MEDICAL EMPLOYEES’ UNION, LOCAL 986

A FORMAL MEMORANDUM OF UNDERSTANDING

SETTING FORTH THE HOURS, WAGES, AND

WORKING CONDITIONS FOR EMPLOYEES

REPRESENTED BY THE CALIFORNIA

TEAMSTERS PUBLIC, PROFESSIONAL AND
MEDICAL EMPLOYEES’ UNION, LOCAL 986
GENERAL & SUPERVISORY EMPLOYEES’ BARGAINING UNIT
July 1, 2025 - JUNE 30, 2028

General & Supervisory Employees’ Bargaining Unit, Teamsters Local 986 1

TABLE OF CONTENTS
ARTICLE 1 – PREAMBLE...............................................................................................................3 ARTICLE 2 – PARTIES TO MEMORANDUM..................................................................................3 ARTICLE 3 – RECOGNITION .........................................................................................................3 ARTICLE 4 – MUTUAL RECOMMENDATION ................................................................................3 ARTICLE 5 – SCOPE OF REPRESENTATION ..............................................................................4 ARTICLE 6 – FULL UNDERSTANDING, MODIFICATION, WAIVER ..............................................4 ARTICLE 7 – CONSTITUTIONALITY..............................................................................................4 ARTICLE 8 – MANAGEMENT RIGHTS ..........................................................................................4 ARTICLE 9 – NON-DISCRIMINATION............................................................................................6 ARTICLE 10 – PURPOSE AND INTENT.........................................................................................7 ARTICLE 11 – REASONABLE NOTICE..........................................................................................7 ARTICLE 12 – ACCESS TO WORKSTATION ................................................................................7 ARTICLE 13 – BULLETIN BOARDS ...............................................................................................8 ARTICLE 14 – UNION ACCESS TO NEW EMPLOYEE ORIENTATION & INFORMATION............8 ARTICLE 15 – JOB DESCRIPTIONS AND CLASSIFICATIONS.....................................................8 ARTICLE 16 – LABOR/MANAGEMENT COMMITTEE....................................................................9 ARTICLE 17 – PROPER CLASSIFICATION COMPENSATION......................................................9 ARTICLE 18 – PROBATION ...........................................................................................................9 ARTICLE 19 – SENIORITY.............................................................................................................9 ARTICLE 20 – JOB SHARING ......................................................................................................10 ARTICLE 21 – REDUCED HOUR POSITIONS.............................................................................10 ARTICLE 22 – DIRECT DEPOSIT ................................................................................................11 ARTICLE 23 – DEFERRED COMPENSATION .............................................................................11 ARTICLE 24 – LOCKERS .............................................................................................................11 ARTICLE 25 – PERSONNEL RULES............................................................................................11 ARTICLE 26 – REST PERIOD ......................................................................................................12 ARTICLE 27 – HOURS AND OVERTIME .....................................................................................12 ARTICLE 28 – SCHEDULING FOR POLICE DEPARTMENT .......................................................14 ARTICLE 29 – UNIFORMS ...........................................................................................................16 ARTICLE 30 – WAGE RATE.........................................................................................................16 ARTICLE 31 – PAYROLL DEDUCTION........................................................................................18 ARTICLE 32 – STEWARDS ADMINISTRATIVE LEAVE ...............................................................18 ARTICLE 33 – REPORT PAY .......................................................................................................18 ARTICLE 34 – COURT PAY .........................................................................................................19 ARTICLE 35 – SHIFT DIFFERENTIAL..........................................................................................19 ARTICLE 36 – ACTING PAY.........................................................................................................20

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
2 ARTICLE 37 – ADDITIONAL DUTIES PAY...................................................................................20 ARTICLE 38 – EDUCATIONAL ALLOWANCE..............................................................................20 ARTICLE 39 – PUBLIC WORKS STANDBY PAY .........................................................................22 ARTICLE 40 – LONGEVITY PAY..................................................................................................22 ARTICLE 41 – PREMIUM PAYS...................................................................................................22 ARTICLE 42 – VACATION............................................................................................................24 ARTICLE 43 – SICK LEAVE .........................................................................................................24 ARTICLE 44 – BEREAVEMENT LEAVE.......................................................................................25 ARTICLE 45 – JURY DUTY ..........................................................................................................26 ARTICLE 46 – MILITARY LEAVE PAY .........................................................................................26 ARTICLE 47 – COMPENSATORY TIME.......................................................................................26 ARTICLE 48 – HOLIDAYS ............................................................................................................27 ARTICLE 49 – RETIREMENT AND RETIREE MEDICAL..............................................................29 ARTICLE 50 – HEALTH AND WELFARE......................................................................................30 ARTICLE 51 – SHORT & LONG TERM DISABILITY ....................................................................32 ARTICLE 52 – FAMILY AND MEDICAL CARE LEAVE .................................................................32 ARTICLE 53 – LAYOFF ................................................................................................................32 ARTICLE 54 – RETURN TO WORK FROM LAYOFF ...................................................................33 ARTICLE 55 – REDUCTION IN LIEU OF LAYOFF .......................................................................34 ARTICLE 56 – INDUSTRIAL INJURIES AND ACCIDENTS ..........................................................35 ARTICLE 57 – DISCIPLINE, SUSPENSION, DISCHARGE ..........................................................36 ARTICLE 58 – GRIEVANCES/APPEAL OF DISCIPLINE..............................................................36 ARTICLE 59 – ARBITRATION ......................................................................................................38 ARTICLE 60 – REOPENERS/ME-TOO CLAUSE..........................................................................39 ARTICLE 61 – TERM OF AGREEMENT.......................................................................................40 EXHIBIT A ...................................................................................................................42 EXHIBIT B ...................................................................................................................44 EXHIBIT C ...................................................................................................................45

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
3 MEMORANDUM OF UNDERSTANDING FOR THE

CALIFORNIA TEAMSTERS PUBLIC, PROFESSIONAL
AND MEDICAL EMPLOYEES UNION, LOCAL 986
GENERAL AND SUPERVISORY EMPLOYEES’ BARGAINING UNIT
JULY 1, 2025 – JUNE 30, 2028
ARTICLE 1 – PREAMBLE
The provisions of this Agreement have been developed in the interest of promoting and improving Employee Relations between the City of Hermosa Beach, California and the General and Supervisory Employees who are represented by the Hermosa Beach General and Supervisory Employees’ Bargaining Unit, Teamsters, Local 986.

ARTICLE 2 – PARTIES TO MEMORANDUM
This Memorandum of Understanding, hereinafter referred to as the "MOU" or the "Agreement", has been entered into, pursuant to the laws of the State of California and the City of Hermosa Beach, California, by and between the CITY OF HERMOSA BEACH, hereinafter referred to as the "City" or as "Management", and the CALIFORNIA

TEAMSTERS PUBLIC, PROFESSIONAL AND MEDICAL EMPLOYEES UNION, LOCAL 986, hereinafter referred to as the "Union".

ARTICLE 3 – RECOGNITION
The City recognizes the Union as the exclusive bargaining representative for all employees who are or become employed in those job classifications contained on Exhibit "A”, which is attached hereto and made a part of this Agreement. The parties recognize that this Agreement contains wages, benefits and working conditions that pertain only to Members of the Union.

ARTICLE 4 – MUTUAL RECOMMENDATION
This Agreement constitutes a mutual recommendation by the parties to the City Council.

This Agreement shall become effective upon approval by the City Council of the City.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
4 ARTICLE 5 – SCOPE OF REPRESENTATION
The scope of representation of the Union shall include all matters relating to employment conditions and employer-employee relations including wages, hours and other terms and conditions of employment.

ARTICLE 6 – FULL UNDERSTANDING, MODIFICATION, WAIVER
A. It is intended that this Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or Agreements by the parties whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

B. Except as specifically provided herein, it is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right and agrees that the other shall not be required to negotiate with respect to any subject or matter covered herein during the term of this Agreement.

C. Any agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall not be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved and implemented by the City Council.

D. The waiver of any breach, term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

ARTICLE 7 – CONSTITUTIONALITY
If any section, subsection, sentence, clause or phrase of this Agreement is for any reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portion of this Agreement. The Union, through the use of its legal staff, will defend the City against any lawsuits brought about or due to any item of this Agreement. It is understood that the City will not have to pay any of the costs of defense of this Agreement.

ARTICLE 8 – MANAGEMENT RIGHTS
A. It is agreed that during the term of this Agreement herein the exercise of the following powers, rights, authority, duties and responsibilities by the City, the adoption of policies, rules, regulations and practices in furtherance thereof, and the use of judgment and the discretion in connection therewith, shall be limited only by the

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
5 specific and express terms of this Memorandum of Understanding, City Personnel Ordinance, Personnel Rules and Regulations, and other statutory law.

B. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the exercise of management’s rights shall impact on employees of the bargaining unit, the City agrees to meet and confer with representatives of the Union, regarding the impact of the exercise of such rights unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding.

C. MANAGEMENT RIGHTS

1. Manage the City.

2. Schedule working hours.

3. Establish, modify or change work schedules or standards.

4. Institute changes in procedures.

5. Direct the workforce, including the right to hire, promote, demote, transfer, suspend, discipline or discharge any employee.

6. Determine the location of any new facilities, building, departments, divisions, or subdivisions thereof, and the relocation, sale, leasing or closing of facilities, departments, divisions, or subdivisions thereof.

7. Determine services to be rendered.

8. Determine the layout of buildings and equipment and materials to be used herein.

9. Determine processes, techniques, methods and means of performing services.

10.Determine the size, character and use of inventories.

11.Determine the financial policy, including accounting procedures.

12.Determine the administrative organization of the system.

13.Determine selection, promotion, or transfer of employees.

14.Determine the size and characteristics of the workforce.

15.Determine the allocation and assignment of work to employees.

16.Determine policy affecting the selection of new employees.

17.Determine the establishment of quality and quantity standards and the judgment of quality and quantity of work required.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
6 18.Determine administration of discipline.

19.Determine control and use of City property, materials and equipment.

20.Schedule work periods and determine the number and duration of work periods.

21.Establish, modify, eliminate or enforce rules and regulations.

22.Place work with outside firms.

23.Determine the kinds and numbers of personnel necessary.

24.Determine the methods and means by which operations are to be conducted.

25.Require employees, where necessary, to take in-service training courses during working hours.

26.Determine duties to be included in any job classifications.

27.Determine the necessity of overtime and the amount of overtime required.

28.Take any and all necessary action to carry out the mission of the City in cases of an emergency.

ARTICLE 9 – NON-DISCRIMINATION
Both parties to this Agreement agree not to discriminate against any employee or applicant because of hair texture and protective hairstyles (such as braids, locks, and twists), color, religious creed (including religious dress and religious grooming practices), national origin, ancestry, citizenship status, age (40 years and older), sex (including pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions), gender, gender identity and expression (including transgender identity and expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning (or is perceived to be transitioning), sexual orientation, sex stereotyping, marital status, domestic partner status, military service and veteran status, physical and/or mental disability (including HIV and AIDS), legally protected medical condition or information (including genetic information), protected medical leaves (requesting or approved), status as a victim of domestic violence, sexual assault, or stalking, enrollment in a public assistance program, their intersectionality of protected characteristics, Association Membership or activity or any other basis protected by local, state, or federal laws. political affiliation, race, religion, color, sex, age, marital status, national origin, or handicap, and with proper regard for their privacy and constitutional rights as citizens.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
7 Additionally, the City expects and requires all employees to treat one another with dignity and respect. Harassment of team members is a violation of law. No employment decision may be made based upon an employee’s submission to or rejection of such conduct. It is the responsibility of any employee who believes that they are the victim of such harassment, to report the conduct to the supervisor, Department Head, Human Resources Manager or the City Manager in a timely manner.

ARTICLE 10 – PURPOSE AND INTENT
A. The City is cognizant of the crucial role that the General and Supervisory employees have in implementing and enforcing the City’s policies, practices and procedures.

The General and Supervisory employees wholeheartedly accept these responsibilities and are committed to the success of City goals. The General and Supervisory employees agree to encourage employees in an attitude of excellence of job performance and increased productivity.

B. Both the City and the General and Supervisory employees must positively support these concepts and mutually promote a cooperative alliance for carrying out these provisions. The General and Supervisory employees are a vital component in the current and future growth of the City and endeavors to act as a valued liaison to communicate City mandates to Employees. This attention to the pursuit of obtaining the most efficient and effective level of professionalism position the General and Supervisory employees as an outstanding team.

ARTICLE 11 – REASONABLE NOTICE
It is mutually understood and agreed that the City Council and/or Civil Service Board Agendas for each meeting be posted in accordance with the Brown Act and that shall constitute reasonable written notice and notice of an opportunity to meet with such agencies, on all matters within the scope of representation upon which the City Council or Civil Service Board may act.

ARTICLE 12 – ACCESS TO WORKSTATION
The City agrees to grant official representatives of the Union the access and right to discuss any grievance or problem arising under the terms of this Agreement with any employee during working hours. It is agreed that there will be as little interference as possible by the Union Business Representative or Shop Steward during the working hours of said employee and efforts will be made to minimize work time spent by either the Shop Steward or employee. It is agreed that the Chief Shop Steward shall be permitted to conduct a

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
8 reasonable amount of Union business regarding grievances/appeals during working hours (such time to be logged) without loss of pay and that the Union may use City facilities to conduct meetings when such facilities are available.

ARTICLE 13 – BULLETIN BOARDS
The City and Union agree to specifically prescribe the location of a reasonable number of bulletin board locations where the recreational, health and welfare, social affairs, notices of meetings or elections and appointments and results of elections. The posting of any other classes of notices or the distribution of any written or printed notices, cards, pamphlets or literature of any kind at City workstations or premises is prohibited without the prior permission of the City Manager or an authorized departmental management official.

ARTICLE 14 – UNION ACCESS TO NEW EMPLOYEE

ORIENTATION & INFORMATION
Pursuant to AB 119, the City agrees to provide, when practical, no less than 10-days’notice in advance of any new employee orientations and provide the Union access to the orientation(s). Orientation refers to any onboarding process, whether in person, online or through other means.

Access shall be determined by the Union, which could mean representational attendance or correspondence. The Union shall advise the City reasonably in advance as to the type of access requested. The City agrees to provide such reasonable notice of current employees that have changed position status (i.e. part-time to full-time, promotional, etc.) that necessitates a change in bargaining unit. Should the Union decide to attend the orientation, the union shall have up to 30 minutes to meet with the employee privately.

The City agrees, pursuant to AB 119, to provide the Union with the name, job title, department, work location, and work telephone number of newly hired employees within thirty (30) days of the date of hire. The City also agrees to provide the Union with the name, job title, department, work location, work, home and personal cellular telephone numbers, personal email addresses and home address of all bargaining unit employees once a year or upon request as long as the prior request for such information or the provision of such information was at least more than one hundred twenty (120) days earlier.

ARTICLE 15 – JOB DESCRIPTIONS AND CLASSIFICATIONS
A. The City and Union reaffirm their mutual intent to regularly review job descriptions and formal class specifications to ensure that these documents are up-to-date.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
9 B. It is further agreed that when a class specification is created, the City and Union will meet and attempt to reach Agreement on the proposed classification, pay and job description.

ARTICLE 16 – LABOR/MANAGEMENT COMMITTEE
To provide a means for continuing communication between the parties, and for promoting a climate of constructive employee relations, a Labor/Management Committee shall be established which will consist of up to four (4) representatives designated by the City and four (4) representatives designated by the Union. Meetings will be held to promote communication and cooperation between the parties, to improve work quality and safety, and to address matters of mutual concern other than individual grievances. Meetings under this article shall be scheduled at the request of either of the parties at a mutually agreeable time and location during the City’s normal working hours. Employees shall not be additionally compensated for off-duty attendance.

ARTICLE 17 – PROPER CLASSIFICATION COMPENSATION
Upon promotion, step increases shall be calculated based on the anniversary date of the promotion.

ARTICLE 18 – PROBATION
A. All employees covered by this Agreement shall have a probationary period of twelve (12) months. Upon the recommendation of the Department Director and with the approval of the City Manager, an employee’s probation may be extended for up to six (6) months. Upon successful completion of the probation, the employee shall be given a salary step increase.

B. Probationary employees, whether new hires or promotional, shall be formally evaluated every three (3) months.

C. Employees shall receive notification of a probationary extension at least seven (7) calendar days prior to the one-year anniversary of the probationary period.

ARTICLE 19 – SENIORITY
A. Seniority shall be a determining factor in all acting appointments, promotions, and transfers within the unit. Seniority, as herein applied, shall be defined as the last date of hire with the City, and as applied shall consist of the following factors:

1. Qualifications

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
10 2. Ability

3. Length of Continuous Service
B. When 1 and 2 are relatively equal, length of continuous service shall govern.

C. This principle of seniority shall not apply to any employee with less than one (1) year of continuous service with the City or with less than six (6) months of service in their most recent job classification.

D. Seniority shall no longer be applicable if an employee is terminated by discharge or other end of employment (except in cases of layoff).

ARTICLE 20 – JOB SHARING
Subject to Civil Service hiring requirements, City may allow employees to job share one permanent position on a voluntary basis. Such positions are subject to the provisions of this Memorandum of Understanding provided however that the City paid health and dental premiums or equivalent thereof, shall cover the one position, for employee only. These employees shall have their pay calculated on an hourly basis and shall accrue Vacation/Holiday/Sick Leave and employee Benefits Option proportional to regular hours worked. Designated hourly wage shall be equally reduced for each employee by the amount required to pay for the second benefit package.

ARTICLE 21 – REDUCED HOUR POSITIONS
A. Subject to Civil Service hiring requirements, City may hire employees in permanent positions of at least twenty (20) hours/week but less than forty (40) hours/week; such positions are subject to the provisions of this Memorandum of Understanding provided however that City paid Medical and Dental premiums shall cover the employee only. Benefit coverage is subject to the Affordable Care Act of 2010 regulations.

B. These employees shall have their pay calculated on an hourly basis and shall accrue vacation/holiday/sick leave proportional to regular hours worked. Said employees are subject to the Agency Shop clause.

C. Completion of a probationary period in a position of at least twenty (20) hours/week is applicable to any/all such positions; seniority shall accrue from date of appointment regardless of hours worked (at least twenty (20) hours/week and up to forty (40)

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
11 hours/week). Probationary period shall be twelve (12) months and at least 1,044 hours.

D. Appointments to "Reduced Hours Positions" shall be processed on a Personnel Action form which shall designate the number of hours to be worked. There shall be an annual review of the average hours worked.

E. Employees in "Reduced Hours Positions" shall be given consideration for all full-time positions before considering of other hiring to fill full-time positions.

F. City may create such positions and employees may volunteer to occupy such positions. No permanent forty (40) hour employee may be required to accept a less hours/week position.

ARTICLE 22 – DIRECT DEPOSIT
Employees are required to enroll in "Direct Deposit" for paychecks, which is an electronic funds transfer (EFT) that deposits paychecks to the bank or credit union of the employee's choice.

ARTICLE 23 – DEFERRED COMPENSATION
A. Each Union Member, individually, may elect to participate in the Deferred Compensation Plans established and adopted by the City of Hermosa Beach.

B. Effective the first pay period after ratification and Council approval of this MOU, the City shall match the employee’s contribution up a maximum of twenty-five dollars ($25) per month.

ARTICLE 24 – LOCKERS
Consistent with past practice, the City agrees to continue to provide lockers to employees covered by this Agreement, who are required to report to duty in uniform, for the purpose of storing and securing personal property. Employees accept responsibility for the cleanliness of said lockers. City supplied lockers are the property of the City and employees assigned a locker have no expectation of privacy.

ARTICLE 25 – PERSONNEL RULES
The City shall provide all employees with a copy of the Personnel Rules and Regulations.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
12 ARTICLE 26 – REST PERIOD
A. Employees shall be allowed one (1) fifteen (15) minute rest period in accordance with departmental rules during each half of the regular workday or regular work shift.

Employees working twelve (12) hour shifts shall receive three (3) fifteen (15) minute rest periods per shift.

1. These rest periods will not be taken at the beginning or end of either half of the regular workday or work shift.

2. Rest periods may not be accumulated, nor shall such rest periods have any monetary value if unused.

3. Breaks must be taken on the work site or at a City facility although it is recognized that purchases may be made in the vicinity during the rest period.

ARTICLE 27 – HOURS AND OVERTIME
A. For FLSA purposes a "WORK-WEEK" shall be defined as:

1. For employees working a 5/40 or 4/40 Monday through Friday schedule:
commencing at 0001 hours Sunday and terminating at 2400 hours Saturday. The work week for employees working other than a Monday through Friday schedule shall be defined in such a manner as to comply with FLSA work period requirements

2. For employees working a Monday through Friday 9/80 schedule: commencing 1101 hrs. Friday and terminating the following Friday at 1100 hrs. The work week for employees working other than a Monday through Friday schedule shall be defined in such a manner as to comply with FLSA work period requirements. The “9/80” schedule provides eighty (80) scheduled hours in a 14-day (two week) cycle where (1) one week the employee works four (4) 9-hour workdays and one (1) 8- hour workday, and the subsequent week consists of four (4) 9-hour workdays with one (1) day off. The “work week” for FLSA overtime purposes shall be established as four (4) hours into the shift of the eight-hour day and in such a manner that no Consecutive seven (7) -day (168 hour) period shall exceed forty (40) hours.

3. For employees working a 3/36 schedule: The 3/36 schedule shall be established in such a manner so as to be in compliance with the Fair Labor Standards Act (FLSA) regarding overtime.

B. The City agrees to pay all Union Members time and one-half (1-1/2) their regular rate of pay for all hours worked in excess of their regularly scheduled workweek.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
13 C. In determining an employee's eligibility for overtime compensation in a workweek, paid leaves of absence and unpaid leaves of absence shall be excluded from the total hours worked (this does not apply for mandatory overtime where the employee receives less than twelve (12) hours’ notice).

For example, if an employee is scheduled (with more than twelve (12) hours’ notice) to work overtime at the end of their shift for three hours and takes two hours sick time during that same workday, the employee would receive straight time for the first two extra hours and time and one-half (1-1/2) for the remaining one hour. If, however, the employee is held over without notice, they would receive time and one-half (1- 1/2) for all extra hours.

D. The City and Union agree that employees covered by this Agreement who are subject to the biannual daylight savings time changes will not be eligible for compensation or be subject to loss of paid time because of the change in hours.

E. If an employee works on a holiday that falls on their regular workday the employee shall receive compensation at a rate of time and one half (1-1/2) in addition to their regular rate of pay for that day. The effect of this is to pay two and one-half (2-1/2) times the employee’s regular rate of pay. The employee may choose to receive either compensatory time off or pay for those hours.

F. If an employee works on a holiday that falls on their regular day off, the City shall compensate the employee at the rate of time and one-half (1-1/2) their regular rate of pay for all hours worked that day. In addition, the employee will accrue Holiday comp time for the holiday. The effect of this is to pay two and one-half (2-1/2) times the employees’ regular rate of pay.

G. If a holiday falls on the employee’s regularly scheduled day off and the employee does not work that day, the employee shall accrue Holiday Comp time for the holiday in accordance with the holiday schedule based on the employee’s regular work schedule.

H. All overtime for Police Service Officers shall be distributed in the following manner:

Seniority shall be the determining factor in all overtime. All overtime shall be offered to the most senior officer first with the following exceptions:

1. To meet immediate staffing levels, i.e. being held over for an unforeseen heavy workload or immediate emergency.

2. In the event that there is a female in custody and no female PSO is on duty, then the closest female PSO shall be offered the overtime. Closest refers to the PSO’s geographic location to the City, in which seniority shall not apply.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
14 3. Seniority shall remain the determining factor in signing up for scheduled overtime (sign-up sheets). Once a PSO signs up for scheduled overtime, he or she may be bumped by a more senior PSO with three days’ notice. The bumping PSO shall make every effort to contact the PSO bumped to advise them of the situation.

In all cases, priority (without regard to seniority) shall be given to the PSO who signs up for the entire shift.

4. Once a PSO signs up for an overtime slot, he or she is responsible for fulfilling that assignment unless he or she calls in sick. The PSO cannot remove their name from the sign-up sheet unless they find a replacement or get approval from the PSO Supervisor.

ARTICLE 28 – SCHEDULING FOR POLICE DEPARTMENT
A. Community Services Division

1. Community Services Officers
a. Police Department personnel assigned to the field operations of the Community Services Division shall have four (4) quarterly shift changes per twelve-month period. These quarterly shift changes shall begin on the first Sunday of the first month of each quarter. The quarters shall run as follows:
i. June, July, August
ii. September, October, November
iii. December, January, February
iv. March, April, May
b. Shifts will be assigned on the basis of seniority. The Department will make a reasonable attempt to post the schedule thirty (30) days prior to the effective date of the rotation.
c. When schedule rotation results in an employee working more than forty (40) consecutive hours, that employee will be paid time and one-half overtime for all hours worked in excess of forty (40) hours in a workweek as defined in Article 27.
d. Union and Management agree that in the event there is a change in hours or the number of positions, directed by policy, a new schedule will be negotiated.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
15 2. Community Services Field Supervisors
a. Community Services Field Supervisors are not included in the Community Services Field Officer’s schedule rotation and their schedule will be established according to the Department’s needs.
b. When schedule rotation results in an employee working more than forty (40) consecutive hours, that employee will be paid time and one-half overtime for all hours worked in excess of forty (40) hours in a work week as defined in Article 27.

B. Administrative Services Division

1. Police Service Officers/Lead/Supervisors:
a. The following rules shall apply for the purpose of shift selection by all Union employees working in the Police Department Jail division:
i. Seniority shall be the determining factor.
ii. For the purpose of shift selection, seniority shall be defined as:
a) Length of continuous service within the classification, to begin with the hire date of said classification.
b) Test score of the classification.
c) If Section "a” is equal, then Section "b" shall be the determining factor in seniority.
b. There will be four (4) quarterly shift changes per twelve (12) month period.

These quarterly shift changes shall begin on the first Sunday of the first month of each quarter, except for the month of September, which shall begin on the second Sunday of the month due to the Labor Day Holiday. The quarters shall run as follows:
i. June, July, August
ii. September, October, November
iii. December, January, February
iv. March, April, May
c. The Department will make a reasonable attempt to post the schedule thirty (30) days prior to the effective date of the rotation.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
16 d. Union employees must change their shift at least once within that year, unless Management and the employee mutually agree that the employee may remain on the same shift.
e. The City and the Union agree that where Police Department Management determines there is a legal obligation to provide and staff Police Department services, such staffing shall be accomplished. The Union and Police Department Management agree to meet and confer to discuss options of meeting such staffing requirements.

ARTICLE 29 – UNIFORMS
A. The City shall continue to provide uniforms to all Union Members in the Public Works Department in accordance with past practice or as may be modified by Agreement with the Public Works Director and approved by the City Manager.

B. All Union Members assigned to work in the Police Department, who are either required to work in uniform or maintain a serviceable uniform, shall be provided with the department prescribed initial clothing necessary to perform their assignment, including shoes and jacket.

C. Building Inspectors, Public Works Inspectors, Code Enforcement and Public Works City Yard employees will be eligible for the purchase of work boots once a year at a maximum price of $250 per pair. The boot allowance will not be reported to CalPERS as special compensation. Selection of the vendor and the purchasing process will be established by the Public Works Director within the purchasing policies of the City.

D. The City agrees to supply employees assigned to Code Enforcement with a uniform, consisting of one (1) jacket, four (4) polo shirts, and three (3) pairs of pants, consistent with the uniform currently in place.

E. After the employee has twelve (12) months of continuous service, the City shall then provide $50.00 per month for the purpose of uniform maintenance and replacement.

F. Uniforms shall be worn and maintained in conformance with established department standards.

ARTICLE 30 – WAGE RATE
The City agrees to hire and appropriately compensate capable Teamsters Employees. They will be professional, be adequately trained, and meet standards required for such positions.

The Council reaffirms that compensation will include such items as salary, deferred compensation, health insurance and merit pay.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
17 A. The salary table attached to the MOU as Exhibit A shall be revised by increasing each amount as follows:

1. Effective July 1, 2025, the salary table shall be adjusted to bring all bargaining unit positions that are below market median as determined by the 2025 Reward Strategy Group Salary Survey Results report.

2. Effective July 1, 2025, and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3%).

3. Effective July 1, 2026, and after the implementation of median adjustments, the salary table for all classifications shall be increased by three percent (3%).

4. Effective July 1, 2027, and after the implementation of median adjustments, the salary table for all classifications shall be increased by three percent (3%).

B. The parties understand that these amounts shall be reported to the California Public Employees Retirement System (CalPERS) as employee compensation and thus be “PERSable.”
C. The City and the Union agree that salary steps for all classifications are “1” through “5”, each step to be one (1) year apart. Step increases shall be effective at the beginning of the next pay period following the employee's anniversary of their date of hire (1st or 16th of the month). To be eligible for a step increase, an employee must receive an overall evaluation of “meeting expectations” or better.

D. Generally, initial appointments shall be made at the "1” step. Upon the recommendation of the Department Director, and approval by the City Manager, the appointment may be made at a higher step.

E. All employees shall be eligible for advancement through the steps based on performance. In cases of exceptional performance, and upon the recommendation of the Department Director, an employee may, with the approval of the City Manager, be advanced a step within the salary range at other than one-year intervals. Such advancement shall establish a new anniversary date for future advancements.

F. The Union and City agree to the concept that all employees covered by this Agreement should receive a performance review at least annually.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
18 ARTICLE 31 – PAYROLL DEDUCTION
It is mutually agreed that the City will, during the term of this Agreement, deduct moneys and remit to the Union as authorized by employee Payroll Deduction Authorization a deduction for dues, providing there is not more than one deduction per pay period.

ARTICLE 32 – STEWARDS ADMINISTRATIVE LEAVE
A. The City shall provide a total of one (1) shift per steward per year for use in attending employer-employee related seminars, conferences, etc., with the concurrence of the Human Resources Department. It is agreed that for the purposes of this section, the maximum number of Stewards who are eligible shall be limited to five (5).

B. The Union will provide the City with a written list of Stewards upon request by the City.

ARTICLE 33 – REPORT PAY
A. Report Pay is that pay for all time worked, or reported to work, after the employee, having completed their last regular scheduled shift, left the work location and is requested to report to work from their domicile. Report Pay shall be equally distributed per department and not per section, if the emergency is not of a specific nature, providing the employee is qualified. Each Department shall establish a uniform "Call-Out" policy and procedure for emergencies. The policy shall include but not be limited to: (1) Equal distribution for call-outs of qualified employees, and (2) establishment of voluntary call-out lists. It is understood that any employee who declines a "call-out" will be removed from the voluntary list and will not be eligible for replacement on that list for a period of six (6) months.

B. It is agreed that all employees shall receive either a minimum of four (4) hours report pay/accrued Compensatory Time or time and one-half (1-1/2) in pay or accrued Compensatory Time, whichever is greater, for any and all call-outs. Such pay received shall be considered as full compensation for said call-out and shall not be considered as hours worked for calculation of FLSA overtime. If an employee has left the City limits and is called out again, even within the four (4) hour window, they are eligible for additional call out pay of either a minimum of four (4) hours report pay/accrued Compensatory Time or time and one-half (1-1/2) in pay or accrued Compensatory Time, whichever is greater

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
19 ARTICLE 34 – COURT PAY
All employees subpoenaed to court while on an off-duty status shall receive either a minimum of three (3) hours pay/accrued Compensatory Time or time and one-half (1-1/2) for actual hours spent in court, or while in an on-call status, whichever is greater. Such pay received shall be considered as full compensation for time so spent and shall not be considered as hours worked for calculation of FLSA overtime.

ARTICLE 35 – SHIFT DIFFERENTIAL
A. All employees covered by this Agreement working the swing shift shall receive one dollar ($1.00) per hour Shift Differential Pay. All employees working the graveyard shift shall receive one dollar and twenty-five cents ($1.25) per hour Shift Differential Pay. The parties understand that this payment is reportable to PERS and is “PERSable.”
B. It is agreed that for the purpose of determining eligibility for Shift Differential Pay, the swing shift commences at 3:00 P.M., and the graveyard shift commences at 11:00 P.M. In order to be eligible for Shift Differential Pay, the assigned shift must have four (4) or more hours after commencement of the shift for which the Member claims Shift Differential Pay. Any employee who is compensated at the rate of one and one-half times their regular rate of pay shall not be eligible for Shift Differential Pay (except for Holidays worked as a part of the employee's regular schedule).

C. Police Department

1. It is agreed that in the Police Department the Police Service Officers and Community Services Officers working any shift shall be paid during their lunch break and rest period, subject to recall to work at any time should the need arise.

2. Lunch breaks shall be taken as close as possible to the middle of the regular work shift. Rest periods shall be taken during each half of the regular work shift. Lunch breaks and rest periods shall be subject to the following conditions:
a. They shall not be taken at the beginning or end of either half of the regular work shift.
b. They shall not be accumulated, nor shall they have any monetary value if unused.
c. They must be taken on the work site or within a Police Department facility although it is recognized that purchases may be made in the vicinity.

3. It is further agreed that supervisors shall make every effort to ensure that the employee receives said rest periods and lunch breaks.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
20 ARTICLE 36 – ACTING PAY
A. Employees covered by this Agreement who are temporarily assigned to perform the full range of duties of a higher classification because of emergency conditions, Sick Leave, Vacation and/or relief shall receive the higher rate of pay commencing after 80 consecutive hours of such assignment. Employee shall be placed on a step in the salary range of the position in which they are temporarily assigned that provides at least a 10% increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement.

B. Community Service Officers assigned temporary upgrade pay as a Supervisor will receive 5% above their regular salary.

C. The parties understand that these amounts shall be reported to PERS as compensation and shall be “PERSable.”
D. In accordance with Gov. Code Section 20480, if an employee is placed in an Acting position that is vacant as a result of a vacancy, the hours worked by the employee shall be reported to PERS and shall not exceed 960 hours in a fiscal year.

ARTICLE 37 – ADDITIONAL DUTIES PAY
A. Upon ratification of this MOU, when an employee is officially determined by their Department Director and the HR Manager to be temporarily performing additional duties outside of their classification, such employee shall be eligible for Additional Duties Pay of $400 per month. Eligibility for the additional pay shall commence after 80 consecutive hours of such assignment. An employee is eligible for additional duties pay for six (6) months or until they are no longer performing the duties. If the employee is still performing the duties after six (6), the City shall make every effort to reassign the additional duties to another eligible employee.

B. Any employee receiving Temporary Upgrade Pay shall not be eligible for Additional Duties Pay.

ARTICLE 38 – EDUCATIONAL ALLOWANCE
A. The City agrees that Union Members who desire to enroll in training, certification programs, and/or academic courses that may provide the employee with general or specific skills and/or knowledge that contributes to their ability to perform their current position or enhances promotional opportunities, shall have their course fees, books,

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
21 and tuition (up to CSU rates) paid by the City in advance, subject to the approval of the City Manager.

B. Employees who attend a non-CSU campus will receive up to the average tuition rate of CSULB, CSUDH & CSULA.

C. Employees may be reimbursed for the renewal of certifications and/or professional licenses that are job-related, subject to the approval of Human Resources and the City Manager.

D. The employee will reimburse the City for all expenses if the employee fails or does not complete or if the employee leaves City employment during the semester they are enrolled and receive payment.

E. Advancement of tuition shall be on a “pro-rated” basis depending upon the number of hours an employee covered by this Agreement is normally scheduled to work (i.e. full time @ 100% reimbursement; half time @ 50% reimbursement, etc.).

F. International Conference of Building Officials (ICBO) Certificate Pay:

1. The City shall pay a one-time bonus of $300 per certificate per person for holders of International Conference of Building Officials (ICBO) Certificates. Said bonus paid for each such Certificate commencing with the second one.

2. Certificates eligible for bonus are:
• Building Inspector
• Electrical Inspector
• Plumbing Inspector
• Mechanical Inspector
• Combination Inspector
• Plans Examiner
• Uniform Fire Code
• Rehabilitation/Conservation Inspector

3. The City shall reimburse the employee for certification and re-certification costs associated with certification examinations.

4. The parties understand that this pay increment is reportable to PERS as compensation and is “PERSable.”

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
22 ARTICLE 39 – PUBLIC WORKS STANDBY PAY
A. After Hours Emergency Response

1. Qualified employees may be assigned, at the discretion of the Public Works Director or Designee, to Standby Duty for after-hours emergency response.

2. Standby Duty shall be assigned to one employee for a period of seven (7) calendar days at the rate of two hundred and fifty dollars ($250.00) per week.

3. While on Standby Duty, the assigned employee shall: carry a department provided pager; respond via telephone within ten (10) minutes to any call; and report fit-forduty within forty-five (45) minutes following receipt of call-out information. The employee shall receive additional compensation for all hours worked pursuant to Article 33 B, “Report Pay.”

4. To be eligible for Standby Duty assignment an individual must: 1) have adequate knowledge of the City’s sewer system, the ability to troubleshoot and operate the sewer jetter, and/or 2) possess a working knowledge of the irrigation systems and operate a chainsaw for tree clearing.

5. Have the ability to drive/operate the cat, backhoe and dump trucks, and/or

6. Have a working knowledge of all electrical and street lighting systems.

7. The Public Works Superintendent shall certify that an individual possesses the required skills. The parties understand that the stipends set forth in this article are not reportable to PERS as compensation and are not “PERSable.” ARTICLE 40 – LONGEVITY PAY
Employees hired prior to August 1, 1983 will continue to receive Longevity Pay of 10.25%.

This amount is reportable to PERS as compensation and is “PERSable.” ARTICLE 41 – PREMIUM PAYS
A. Training Premium

1. Police Service Officers and Community Service Officers who have been certified as Training Officers, as determined by the department, shall be eligible for Training Officer Premium Pay in the amount of three dollars ($3) for each hour so assigned training duties. This amount shall be reported to PERS as compensation and is “PERSable.”

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
23 B. Lead Worker/Supervisor (Police Service Officer) Premium

1. An individual in the classification of Police Service Officer may, with the approval of the Division Captain and the Chief of Police, be selected to serve in an assignment as Lead Police Services Officer and shall receive a 10% premium above base salary while so assigned. An individual so assigned may be removed with cause. This amount is reported to PERS as compensation and is “PERSable.”

2. The Lead Police Service Officer shall meet the criteria and be responsible for the duties listed in Exhibit B attached hereto.

C. Public Works Department Premiums

1. Public Works Department employees in the classification of Maintenance I or Maintenance II who meet the requirements of the premium pay categories of (1) Electrician; (2) Carpenter; (3) Traffic Specialist (4) Irrigation Specialist; (5) Street Maintenance Technician; or (6) Sewer/Storm Drain Specialist, as described in Exhibit C, as certified by the Public Works Superintendent, and approved by the Public Works Director may be selected to receive a 10% premium above base salary while assigned the designated duties. A maximum of six (6) employees may receive the premium. The parties understand that this payment is not reportable to PERS and is thus not “PERSable.”

2. Employees in the classification of Public Works Inspector who attain a Penal Code 832(a) certification following completion of an introductory training course prescribed by the Commission on Peace Officer Standards and Training shall receive a 5% premium pay above base salary.

D. Bilingual Premium

1. The City agrees to pay a monthly premium of $100 per month to full-time employees who have demonstrated proficiency/fluency in a second language which has been demonstrated to be of value to the City in providing customer service. This compensation will be paid to employees who are routinely and consistently assigned to positions requiring communication skills in languages other than English. This amount shall be reported to PERS as compensation and shall be “PERSable.”

2. An employee receiving Bilingual Skill Premium will be called upon to assist in any department within the City on an “as needed basis” to provide interpretation services. Individuals receiving a Bilingual Skill Premium may periodically be subject to call-out or be required to work in excess of their regular schedule. In the event of call-out or overtime, compensation shall be in accordance with the appropriate provisions of this Agreement.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
24 3. Employees with bilingual ability will be tested for oral skill in the designated language through an examination process mutually agreed upon as determined by the Human Resources Manager and Union. Employees must successfully pass the examination to be eligible for Bilingual Skill Premium.

ARTICLE 42 – VACATION
A. It is agreed that all employees covered by this Agreement shall accrue vacation commencing with the start of the service year as follows:

Years of Service Accrued Per Year
1st – 3rd Years 80 Hours
4th – 5th Years 96 Hours
6th – 9th Years 120 Hours
10th – 13th Years 144 Hours
14th – 17th Years 168 Hours
18th Year 192 Hours
B. Employees may use (subject to Department Director’s approval) one (1) week of vacation six (6) months after hire date (after halfway point of probationary period).

C. No current employee shall have an accrual rate less than the rate in effect as of August 30, 1988.

D. All employees may cash in up to eighty (80) hours of vacation time per fiscal year.

E. Vacation may be accrued up to a thirty (30) month accrual level, with an automatic cash out for hours above that amount. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th.

ARTICLE 43 – SICK LEAVE
A. Sick leave shall be used only in case of sickness or disability of the employee or in the case of serious illness or death within the immediate family. Misuse of sick leave shall be grounds for disciplinary action.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
25 B. To receive compensation while absent on sick leave, employees shall notify the City per their Department's policy.

C. Employees shall accrue Sick Leave at the rate of ten (10) hours per month.

D. When eligible, an employee may cash in a maximum of 96 hours of unused sick leave hours earned from December 1st of the prior year to November 16th of the current year. This cash out is to be paid to the employee on the first payday in December.

Provided however, in lieu of cash out employees may convert 100% of their sick time, in excess of one-hundred seventy-six (176) hours, to vacation time. All employees shall maintain a balance of one hundred seventy-six (176) sick leave hours to be eligible for any cash out.

E. Upon resignation or retirement, all employees with five (5) years or more service may elect to be paid for seventy-five percent (75%) of all unused sick hours accrued prior to July 1, 2017, at their current rate upon resignation or retirement. Upon resignation or retirement, all employees with twenty (20) years or more service accrued prior to July 1, 2017, may elect to be paid for one hundred percent (100%) of all sick hours at their current rate upon resignation or retirement.

F. Except as otherwise provided in E above, sick leave accrued after July 1, 2017, shall not be paid out. Pursuant to Government Code § 20965, related CalPERS, rules and the City’s contract with CalPERS. Upon retirement from City employment, an employee’s unused accumulated sick leave at the time of retirement may be converted to additional service credit.

ARTICLE 44 – BEREAVEMENT LEAVE
A. Each employee covered by this Agreement shall receive a maximum of forty (40) paid hours per occurrence to be utilized for Bereavement Leave because of a death in their immediate family.

B. Immediate family for the purposes of this section shall be defined as: domestic partner, father; mother; father-in-law; mother-in-law; brother; sister; spouse; child, stepchild. stepfather, stepmother, grandparent, grandchild or legal dependent.

Employees may pre-designate and substitute other Members defined as “immediate family.” The intent of this provision is not to expand the number of persons included in the definition of “immediate family” or to increase paid leave opportunities, but rather to recognize variation in family structure (e.g. stepmother for mother).

C. One (1) additional unpaid shift shall be granted to the employee upon request. The employee can elect to use available paid leave accruals to cover the additional shift.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
26 D. Bereavement Leave shall be taken within twelve (12) months of the death and does not need to be consecutive nor will pay in lieu of unused leave for bereavement be provided.

ARTICLE 45 – JURY DUTY
A. If called for jury duty in a Municipal, Superior, or Federal Court, or for a Coroner’s Jury, Employees covered by this Agreement shall remain in their regular pay status.

All jury fees except mileage reimbursement shall be returned to the City. The City will provide paid jury duty leave in accordance with Administrative Policy P15.

B. Employees who have served four (4) or more hours in one day of jury duty will not be required to report for work within twelve (12) hours of the time they were released, dismissed, or excused from jury duty for the day. At the Supervisor’s discretion an employee may be excused from the reporting requirement if the time they would be at work is de minimis.

ARTICLE 46 – MILITARY LEAVE PAY
Employees covered by this Agreement will be granted Military Leave pursuant to governing State and Federal law but shall not receive any base salary pay while on such Leave, except as required by law.

ARTICLE 47 – COMPENSATORY TIME
A. In lieu of pay, Compensatory Time may be earned at a rate of one and one-half times the actual hours worked in an overtime situation. Said Compensatory Time may be accrued to a maximum of one hundred (100) hours with an automatic cash-out of any overage as a part of the regular payroll process. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th.

B. In a holiday situation, Compensatory Time can be earned as indicated in Article 27 and can be accrued up to one hundred (100) hours with an automatic cash out of any overage.

C. Separate accrual banks shall be maintained for each type of Compensatory Time.

D. The granting of requests for Compensatory Time off shall not be unreasonably withheld and shall be made in accordance with departmental policies.

E. Employees may elect to cash-in accrued compensatory time except during any pay period in which the employee is absent without pay.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
27 ARTICLE 48 – HOLIDAYS
A. All employees covered by this Agreement working the 5/40 schedule shall receive the following holidays off with pay:

New Year's Day; Martin Luther King, Jr.'s Birthday; President’s Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veterans Day; Thanksgiving Day; Thanksgiving Friday; halfday Christmas Eve (five (5) hours); Christmas Day; half-day New Year’s Eve (five (5) hours).

B. Employees covered by this Agreement working the 4/40 schedule in positions assigned to areas that are closed on the holidays listed below, shall receive the following holidays off with pay:

New Year's Day; Martin Luther King, Jr's Birthday; President's Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veteran's Day; Thanksgiving Day; half-day Christmas Eve (five (5) hours); Christmas Day; half-day on New Year’s Eve (five (5) hours).

C. Community Service Officers & Supervisors

1. All employees covered by this Agreement working as a Community Services Officer and/or Community Service Supervisor shall receive the following holidays off with pay:

Thanksgiving; Christmas Day; New Years’ Day.

2. All employees covered by this Agreement working as a Community Services Officer and/or Community Services Supervisor are eligible to receive Holiday pay for the following Holidays:

Martin Luther King, Jr.’s Birthday; President’s Day; Memorial Day; Independence Day; Labor Day; Veterans’ Day; Cesar Chavez Day; Juneteenth; half-day Christmas Eve (five (5) hours); half-day on New Year’s Eve (five (5) hours).

D. If an employee is not scheduled to work on a designated Holiday, they shall be compensated ten (10) hours or twelve (12) hours (depending on their regular work schedule) of Holiday Comp Time (HCE) or Holiday Pay. If an employee works on a Holiday that falls on their regular day off, the City shall compensate the employee at a rate of time and one-half (1-1/2) for overtime worked, in addition to the previously mentioned (10) hours or twelve (12) hours Holiday Comp Time or Pay. If an employee

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
28 works on a holiday that falls on their regular workday, the employee shall receive fifteen (15( hours (10 hours Holiday times 1.5) or eighteen (18) hours (12 hours Holiday times 1.5) Holiday Comp Time or Pay in addition to their regular rate of pay for that day. The effect is to pay two and one-half (2-1/2) times the employee’s regular rate of pay. The employee may choose to receive either Holiday Compensation Time or pay for those hours earned.

E. All employees covered by this Agreement working a 9/80 schedule shall receive ninety (90) hours of Holiday Time per calendar year. Each year of this Agreement, the 9/80 holiday schedule for "A” Shift and “B” Shift will be developed and agreed to by Union and City.

F. For all holidays that fall on a Saturday, employees will receive compensatory time.

For all holidays that fall on a Sunday, the holiday will be observed on Monday. This does not apply to employees in the classification of Police Service Officer/Lead/Supervisor, Community Services Officer and Community Service Supervisor. For these positions, Holidays shall be observed on the specific calendar day that the Holiday actually falls on (not necessarily on the day that City Hall is closed in observance of the Holiday). For example, if Christmas day falls on a Sunday, the Holiday for the above noted positions will be observed on that Sunday.

G. Police Service Officers/Lead/Supervisors

1. All employees covered by this Agreement working as a Police Service Officer, Lead Police Service Officer, or Police Service Officer Supervisor, are eligible to receive Holiday pay for the following Holidays:

New Year’s Day; Martin Luther King, Jr.’s Birthday, President’s Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veteran’s Day; Thanksgiving Day; half-day Christmas Eve (five (5) hours); Christmas Day; half-day New Years Eve (five (5) hours).

2. If an employee is not scheduled to work on that Holiday, they shall be compensated (10) hours or twelve (12) hours (depending on their regular work schedule) of Holiday Comp Time or Pay. If an employee works on a Holiday that falls on their regular day off, the City shall compensate the employee time and one-half (1-1/2) for any overtime hours worked up to (10) hours or twelve (12) hours (depending on their shift). Any hours worked over (10) hours or twelve (12) hours will be paid at two and one-half (2-1/2) times their regular rate in addition to the (10) hours or twelve (12) hours of Holiday Comp Time/Pay stated above. If an employee works on a holiday that falls on their regular work day, the employee shall receive their regular rate of pay in addition to time and one-half (1-1/2) for all hours worked, up to (10) hours or twelve (12) hours . Any hours worked over (10) hours or twelve (12) hours will be paid at two and one-half (2-1/2) times their

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
29 regular rate. The effect is to pay two and one-half (2-1/2) times the employee’s regular rate of pay. The employee may choose to receive either Holiday Compensatory Earned (HCE) or pay for those hours earned.

ARTICLE 49 – RETIREMENT AND RETIREE MEDICAL
A. Tier I. The City provides the PERS 2% at 55 Plan with one-year final compensation to employees hired prior to July 1, 2011.

B. Tier II. For new employees hired on or after July 1, 2011, up to and concluding December 31, 2012, the PERS retirement benefit formula shall be the 2% @ 60 plan, with retirement benefits calculated on one-year final compensation.

C. Tier III. Employees hired on or after January 1, 2013, shall be subject to the Public Employee Pension Reform Act, (“PEPRA”; Assembly Bill 340) including but not limited to:

1. 2% at 62 retirement formula for those who are “new members” as that term is defined in AB 340.

2. Such new members shall pay to PERS by payroll deduction 50% of the “normal cost” as defined in AB 340 or the then current contribution rate of similarly situated employees, whichever is greater, as required by Government Code section, 7522.30(c).

D. Any employee covered by this Agreement will be eligible, upon service retirement from this City, for a medical supplement. Said supplement shall be in the following amount:

1. For those who were hired before July 1, 2018, and who retired after July 1, 2008:

The City will contribute 5% of the health insurance premium for each year of service with the City of Hermosa Beach up to the lesser of the single person HMO premium of the lowest cost HMO plan or $500 per month. A retiring employee must have completed a minimum of ten (10) years of service with the City of Hermosa Beach and be at least fifty-five (55) years of age to be eligible for this benefit.

2. For those who retired before June 30, 2008: For service retirement at age fiftyfive (55) with a minimum of twenty (20) years continuous service, a $250 (or cost of policy whichever is less) per month medical insurance supplement, provided, however, that no currently retired employee shall have a benefit amount less than they are currently receiving.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
30 3. For those hired on or after July 1, 2018: The City will provide a medical insurance supplement of $400 per month. A retiring employee must have completed a minimum of twenty (20) years of continuous service with the City of Hermosa Beach and be at least sixty (60) years of age to be eligible for this benefit.

4. The medical supplement payments specified in Sections D(1) – D(3) above, shall commence with the first month following the employee's service retirement in which the employee is responsible for payment of the insurance premium.

5. In order to be eligible for medical supplement payments, an employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan or coverage through a spouse or domestic partner’s medical plan.

6. Retirees who are eligible for a supplement but who are not covered on the City policy are still eligible to receive their stipend. Payments will only be made when the retiree provides proof of coverage of insurance and proof of the amount paid for said coverage. Proof of coverage and the amount paid must be provided to the City within 60 days. The City will not provide retroactive reimbursement for payments not documented within 60 days of payment. The amount paid to the retiree will be the lesser of the amount paid for coverage or the stipend amount allowed by the MOU.

7. Any employee receiving a benefit under this Article agrees to apply for, and enroll in, any Federal and/or State medical insurance plan (e.g. Medicare, Medicaid, etc.) for which they may become eligible unless such Federal and/or State medical insurance plan or equivalent no longer exists. For all active employees, the benefit will end at the month in which the member becomes eligible for State or Federal Medicare, which is currently 65 years of age.

ARTICLE 50 – HEALTH AND WELFARE
A. The City agrees to establish and maintain a Cafeteria Plan in accordance with the provisions of Section 125 of the Internal Revenue Code. The purpose of the Plan is to allow eligible employees to elect to pay for qualified benefits on a pre-tax basis, to the extent permitted by law.

The Cafeteria Plan shall permit pre-tax deductions for the following qualified benefits, subject to IRS regulations and plan design:

1. Health insurance premiums (including medical, dental, and vision coverage).

2. Health Flexible Spending Accounts (FSA).

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
31 3. Dependent Care Assistance Plans (DCAP).

4. Any other qualified benefit permitted under Section 125 and approved by the City.

B. Life Insurance
The City shall provide and pay the full premium for a life insurance policy for each employee payable in the amount of $50,000.

C. Short- and Long-Term Disability Insurance
The City will provide and pay the full premium for short- and long-term disability insurance for each employee.

D. Medical Insurance
The City will provide employees with a choice of a Preferred Provider Option (PPO) or a Health Maintenance Organization (HMO), both of which will include prescription coverage.

The City’s maximum monthly premium contribution toward medical insurance for each employee’s selected plan and level of coverage will be $1,875.39. Employees choosing a medical insurance plan and/or coverage level with a monthly premium that exceeds the City’s maximum contribution shall pay the difference by payroll deduction.

E. Dental Insurance
The City’s maximum monthly premium contribution toward dental insurance for each employee’s selected plan and level of coverage will be $226.30.

F. Vision Insurance
The full cost of the Vision Plan shall be borne by the employee.

1. During the Term of this MOU, the City intends to review its dental and vision providers for the purpose of providing quality care for a reasonable price. If the City changes providers and the cost of the dental premium is reduced by at least 20%, the City will bear the cost of the lowest cost vision plan for the employee + two (2) or more dependents.

G. Psychological Health
The City will continue to provide full family coverage for the psychological health benefit.

H. The City and the union mutually recognize the need to explore cost containment measures to control the increasing rates of the various lines of insurance coverage provided to City employees. As part of the annual insurance program renewal process, the City shall explore various alternate benefit levels to mitigate premium increases such

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
32 as changes to copayments and deductibles. The City agrees to meet with the Union to review and discuss any proposed changes to existing benefit levels.

I. An employee who demonstrates proof of medical insurance coverage available through a spouse or domestic partner may receive a cash payment of $750.00 per month in lieu of City provided coverage.

1. An employee who receives cash in-lieu of selecting a health insurance plan shall have the amount reported as earned income for tax purposes but shall not be deemed earned income for retirement purposes. It is the understanding of the parties that dollars distributed to the employee as cash in this manner shall not be construed as earned income for PERS purposes.

ARTICLE 51 – SHORT & LONG TERM DISABILITY
A. The City’s Short-Term Disability (STD) Insurance Plan begins after a 7-day waiting period. The maximum benefit is 66 2/3% of earnings up to a maximum of $1,698 per week. The City’s Long Term Disability Insurance Plan provides 66 2/3% of earnings has a maximum benefit of $9,000 per month and begins after 90 days of disability or the date STD benefits end, whichever is later.

B. An Employee utilizing the Short- or Long-Term Disability Plan shall not accrue Vacation, Sick Leave, Holiday Pay or allowances after the 30th calendar day after disability.

C. Employees are eligible to coordinate their Short and Long-Term Disability Insurance with paid compensated time-off work to be paid up to 100% of regular take-home pay.

ARTICLE 52 – FAMILY AND MEDICAL CARE LEAVE
As required by State and Federal law, the City will provide Family and Medical Care Leave for eligible Employees. The City maintains a FMLA/CFRA/PDL procedure which governs Family and Medical Care Leave and is provided to all employees at the start of their employment and is also available on the City’s Intranet site ARTICLE 53 – LAYOFF
A. It is mutually agreed that whenever, in the judgment of the City Council, it becomes necessary to abolish a position in the interest of economy or because the necessity for the position no longer exists, the City Council may abolish any position or employment in the competitive service and the personnel officer shall layoff, demote or transfer employees thereby affected.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
33 B. The City shall give such employees not less than thirty (30) days advance notice of separation and reason therefore.

C. Layoff shall be made within classes of positions and all provisional employees in the affected class or classes shall be laid off prior to the layoff of any probationary employee. All probationary employees in the affected class or classes shall be laid off prior to the layoff of any permanent employee in the affected class or classes and such layoff shall be by seniority.

D. The criterion used in determining the order of separation shall be seniority. Seniority is defined as the total time worked within one's current classification. Wherever seniority in classification is equal, the following criteria shall be applied in the order below:

1. Total City service.

2. Relative position on the certified eligibility list.

3. Drawing of lots.

E. The seniority date shall be the date of permanent appointment from a certified Civil Service List. For those employees who have served in their current classification prior to 1981, the seniority date will be the date of appointment via personnel action.

F. Date of hire shall include all City service including CETA and FEEA time but not part time/no benefit service.

G. Seniority shall not include the time which was terminated by voluntary resignation from the competitive service, layoff, leave of absence or suspension from the competitive service but shall include time served on military leave of absence.

H. When a layoff affects a classification which crosses department lines, the less senior employee in said classification shall receive the layoff regardless of department as outlined in paragraphs D, E and F.

I. Employees laid off shall have the City paid portion of their medical insurance premiums paid for two months following the date of lay-off.

ARTICLE 54 – RETURN TO WORK FROM LAYOFF
A. It is mutually agreed that the names of probationary and permanent employees laid off shall be placed upon an eligibility list for classes which, in the opinion of the City Manager, require essentially the same qualifications and duties and responsibilities as those of the class of position from which the layoff was made.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
34 B. Names of persons laid off shall be placed at the top of eligibility lists in order of their seniority and shall remain on such lists for a period of two (2) years unless reemployed by the City. The result being, by classification, the last employee laid off shall be the first rehired.

C. In the event that an employee on a rehire list is offered a position in the classification from which they were laid off and does not accept said position, then their name shall be removed from all re-employment lists. Acceptance of temporary employment does not affect eligibility on permanent re-employment lists.

D. In the event that an employee on a rehire list is offered a position in a lower classification from which they were laid off and does not accept said position, their name shall be removed from the lower classification rehire list but will remain on the higher classification list.

E. Employees hired from the re-employment list into a classification lower than the classification in which they were laid off shall have their names maintained on the reemployment list for the higher classification until said re-employment list expires.

F. Notices of recall from layoffs shall be sent by certified mail (return receipt requested) and shall specify the date for reporting to work, which shall not be more than two (2) weeks from the date the notice is received. Notice shall be deemed to have been received when sent to the last known address on file with the City and delivery or attempted delivery is certified by postal service. Notice of recall will also be forwarded to the recognized bargaining agent. Employees to be laid off shall submit to the Human Resources office their current address at the time of separation. Upon receiving notice, the person on layoff shall have five (5) days to accept or decline the recall opportunity.

G. Any employee failing to respond in writing within five (5) days of recall or failing to report on the prescribed date within the two (2) week maximum, waives all remaining rights to recall on all re-employment lists. The City will proceed to the next senior person until recall needs are met or the list(s) is exhausted.

H. Upon recall from lay-off, all accruals will be based on criteria set forth in Article 53 Layoff, paragraphs D, E and F.

ARTICLE 55 – REDUCTION IN LIEU OF LAYOFF
A. It is mutually agreed that an employee whose position is abolished shall be permitted to drop back into the next lower classification within the same classification family and (i.e. Maintenance II to Maintenance I; Senior Account Clerk to Account Clerk) within their department and continue in service provided they are qualified to perform the

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
35 duties of the lower classification. The layoff, if any, shall be made in the lowest grade in the department of the employee having the least seniority.

B. In the case of reduction of any employee in the City Service to a class with a lower pay range such employee's salary shall be reduced to a pay step in the lower range corresponding to less than one step in dollar amount below that which he held in the higher class before such reduction.

C. For purposes of future step advancement, accrued time in the higher classification step shall be retained.

D. An employee whose position is abolished shall be permitted to continue in service in a lateral position (same salary range) within their department if there is a vacancy and the employee meets the minimum qualifications for the vacant position.

E. An employee shall be required to successfully complete a thorough background investigation for any position they assume as a result of reduction in-lieu or lateral transfer if such a background investigation is required of a new-hire employee.

ARTICLE 56 – INDUSTRIAL INJURIES AND ACCIDENTS
A. It is understood that the City will provide medical facilities to be used for industrial accidents or illness.

B. Employees will be seen and treated by medical professionals that are part of the Medical Provider Network, unless an employee has pre-designated a physician.

C. Employees may designate a personal physician to provide treatment in the event of a workers’ compensation injury or illness. A pre-designation form entitled, “PERSONAL PHYSICIAN PRE-DESIGNATION FORM FOR WORK RELATED INJURIES” must be completed in order to designate a physician. This two-page form is available in the Human Resources Office and must be signed by the employee AND their personal physician and returned to the Human Resources Office BEFORE an injury occurs in order to be valid.

D. An employee who suffers an injury on duty on or after that date will continue to have payment of the City's portion of all health insurance premiums paid for a period of seven (7) full months commencing with the month in which the injury occurred.

E. Accrual of vacation, sick, and holidays shall be governed by the provisions of Article 51(B).

F. Nothing herein shall prevent an employee from utilizing their accrued time in addition to receiving temporary disability payments under the provisions of the Workers' Compensation laws of the State of California in order to maintain their full salary

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
36 ARTICLE 57 – DISCIPLINE, SUSPENSION, DISCHARGE
A. The City understands the value of progressive discipline and will endeavor to incorporate that procedure in its disciplinary policy. Therefore, as a guideline, the City will endeavor to adhere to the following progressive disciplinary procedure:

1. Written Notice(s).

2. Written Reprimand(s).

3. Suspension(s); Reduction-in-Pay; Demotion.

4. Demotion/Reduction-in-Pay.

5. Termination.

B. The above procedure will be used only as a guideline and will apply to all of the Union's classifications and positions.

C. Appeals of Discipline equivalent to a suspension of four (4) days or less shall be governed by the provisions of Article 58. Appeals of discipline equivalent to five (5) days or more are governed by Article XXX of the City of Hermosa Beach Personnel Rules and Regulations.

ARTICLE 58 – GRIEVANCES/APPEAL OF DISCIPLINE
A. Purpose of Grievance/Appeal Procedures:

1. To promote improved Employer-Employee relations by establishing procedures on matters.

2. To provide that Grievances/Appeals shall be settled as near as possible to the point of origin.

3. To provide that the Grievance/Appeal procedures shall be as informal as possible.

B. A Grievance shall be defined as a controversy between the City and the Union or an employee or employees covered by this Agreement. Such controversy must pertain to any of the following:

1. Any matter involving the application of any provision of this Agreement; or

2. Any matter involving the violations of any provision or intent of this Agreement; or

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
37 3. Any matter that affects the working conditions of the employee or the application of all rules, regulations, policies and/or laws affecting the employees covered by this Agreement.

C. An Appeal of Discipline is distinct from a Grievance in that it is an action taken by an employee to request an administrative review of disciplinary action initiated against them.

D. There shall be an earnest effort on the part of both parties to settle grievances/appeals promptly through the steps listed below. Grievances/Appeals must be processed with Union participation.

E. STEP 1 - An employee's Grievance/Appeal must be submitted in writing by the employee fully stating the facts surrounding the Grievance/Appeal and detailing the specific provisions of this Agreement alleged to have been violated, and presented to the first line supervisor or management representative immediately in charge of the aggrieved/disciplined employee within ten (10) working day after the employee could have been reasonably expected to have had knowledge. The supervisor or management representative shall reply to the employee by the end of the tenth (10th) working day following the presentation of the Grievance/Appeal and the giving of such answer will terminate Step 1.

F. STEP 2 - If the Grievance/Appeal is not settled in Step 1, the Grievance/Appeal will be presented to the Department Director (or, in the case of an appeal of a disciplinary action initiated by a Department Director or where the Department Director participated in the decision to administer discipline, to the Human Resources Manager within ten (10) working days after termination of Step 1. Appeals of written reprimands shall be presented to the Human Resources Manager. A meeting with the employee, shop steward and Department Director/Human Resources Manager (or designee) will be arranged at a mutually agreeable location and time to review and discuss the Grievance/Appeal. Such meeting will take place within ten (10) working days from the date the Grievance/Appeal is received by the Department Director/Personnel Director (or designee). The Department Director/Human Resources Manager (or designee) may invite other members of management to be present at such meeting. The Department Director/Human Resources Manager (or designee) will give a written reply by the end of the tenth (10th ) working day following the date of the meeting, and the giving of such reply will terminate Step 2.

1. An appeal of Discipline in the form of a Written Notice shall not be continued beyond the second step however an employee may prepare a written response to the reprimand to be placed in the employee’s personnel file.

G. STEP 3 - If the Grievance/Appeal is not settled in Step 2, it shall be submitted to the City Manager. The Union Representative and City Manager or their designee shall,

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
38 within ten (10) working days after the termination of Step 2, arrange a meeting to be held at a mutually agreeable location and time to review and discuss the Grievance/Appeal. Such meeting will take place within ten (10) working days from the date the Grievance/Appeal is referred to Step 3. A decision shall be rendered within ten (10) working days from the date of such meeting. The decision shall be in writing. The giving of such reply will terminate Step 3.

H. Time limits, as set forth above for each of the steps may be extended by mutual Agreement between the parties but neither party shall be required to so agree.

I. In the event the Union calls witnesses that must be excused from work, the City agrees to excuse same in a paid status. The parties agree that in the event the Union Member or the Union fail to comply with the time limits contained herein, such failure constitutes a waiver of the right to prosecute the Grievance/Appeal; it is further agreed that in the event the City or its representatives fail to comply with the prescribed time limits, such failure constitutes an agreement to concur with the grievant’s/appellant's position and remedy.

J. It is not intended that the grievance procedure be used to effect changes in the established salary and fringe benefits.

ARTICLE 59 – ARBITRATION
A. Grievances/Appeals which are not settled pursuant to the Grievance/Appeal procedure herein and which either party desires to contest further, shall be submitted to arbitration as provided in this Article provided however that said Request for Arbitration shall be made within ten (10) working days of the conclusion of Step 3 of the Grievance/Appeal procedure.

B. As soon as possible and in any event not later than ten (10) working days after either party received written notice from the other of the desire to arbitrate, the parties shall agree upon an arbitrator. If no Agreement is reached within said ten (10) working days, an arbitrator shall be selected from a list of seven (7) arbitrators submitted by the Federal or State Mediation and Conciliation Service by alternate striking of names until one name remains. The party who strikes the first name from the panel shall be determined by lot.

C. Either the City or the Union may call any employee as a witness, and the City agrees to release said witness from work if they are on duty. If an employee witness is called by the City, the City will reimburse the employee for time lost; if called by the Union; the Union may pay the expense.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
39 D. The arbitrator shall have no power to alter, amend, change, add to or subtract from any of the terms of this Agreement. The decision of the arbitrator shall be based solely upon the evidence and arguments presented to him by the respective parties in the presence of each other.

E. The decision of the arbitrator within the limits herein prescribed shall be final and binding upon the parties to the dispute.

F. The mutual decision of the parties and/or the arbitrator in any dispute shall be the final and binding decision on all parties and there shall not be any appeal to another board, authority, commission and/or agency for it is the intent of this Agreement to supplant the Civil Service (Personnel Board) hearing and appeal system with the provisions of this Article.

G. The arbitrator may hear and determine only one grievance/appeal at a time without the express Agreement of the City and the Union. The parties shall share equally the expense of the cost of the arbitration, with the exception of counsel's fees.

ARTICLE 60 – REOPENERS/ME-TOO CLAUSE
A. The parties agree to open the meet and confer process during the term of this MOU only as regards the following issues. These reopeners are not contingent upon the execution of any successor MOU and no successor MOU is contingent upon agreement on these reopeners:

1. The City and Union agree to meet and confer on moving the City from a bi-monthly payroll period to a bi-weekly payroll period. It is understood that in order to do so, all bargaining units in the City must agree to this change.

2. The City and Union agree to meet and confer on Article 41(C) to find mutually agreeable language.

3. The City and Union agree to meet and confer on the City’s contribution for medical coverage if the monthly premium exceeds the cost of the family HMO plan.

B. During the term of this MOU, if any other bargaining unit in the City of Hermosa Beach, except the Police Officer’s Association and the Police Management Group, receive additional increases to the proposed cost of living increases, including retroactive payments, as described in Article 30, Wage Rate, or additional benefits not afforded employees covered by this Agreement, the City agrees to provide the same such increases and improvements to the employees covered by this Agreement.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
40 C. The provision of this paragraph shall expire on and not be effective after June 30, 2028.

ARTICLE 61 – TERM OF AGREEMENT
This Agreement shall commence July 1, 2025, and continue until midnight June 30, 2028.

This Agreement shall be effective as of the date the City Council approves the Agreement.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
41 IN WITNESS WHEREOF, the parties hereto cause this Agreement to be executed this _____ day of _____________ 2025.

CALIFORNIA TEAMSTERS PUBLIC

PROFESSIONAL & MEDICAL EMPLOYEES CITY OF HERMOSA BEACH
UNION, LOCAL 986
_________________________________ ________________________________ Michael Grijalva, Teamsters Local 986 Cynthia Stafford
Chief Negotiator Chief Negotiator
_________________________________ _______________________________ Maria Marquez-Viramontes, Union Steward Steve Napolitano Interim City Manager
_________________________________ _______________________________ Robert Ramos, Union Steward Brandon Walker
Director of Administrative Services

_________________________________ ________________________________ Chris Aviles, Union Steward Tiffany Nguyen
Human Resources Manager

__________________________________
Bradley Cocking, Union Steward
___________________________________
Kalyn Kaemerle, Union Steward

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
42 EXHIBIT A

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
43 EXHIBIT A (Cont.)

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
44 EXHIBIT B

LEAD POLICE SERVICE OFFICER CRITERIA/DUTIES

1. Must have been satisfactorily performing all job functions within the classification of Police Service Officer.
2 Shall be Police Service Training Officer certified within twelve (12) months of appointment.

3. Must be able to utilize a Records Management System (RMS) with independence and efficiency.

4. Shall be responsible for supervision and scheduling of assigned Police Service Officers.

5. Shall participate in and coordinate performance evaluations and recommend training as necessary for assigned personnel.

6. Shall represent the jail division at department and other meeting as required.

7. Shall be responsible for recommending policies and procedures for jail operations and ensuring compliance with same when approved.

8. Shall assist in the maintenance of the jail operation manual.

9. Shall have responsibility for coordination and scheduling of the department’s Trustee Program.

10. Must have the ability to make responsible and prudent decisions in all assigned areas that pertain to the functions of the department.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
45 EXHIBIT C

PUBLIC WORKS DEPARTMENT PREMIUM PAYS CRITERIA/DUTIES
A. Electrician

1. Must be able to independently trouble shoot and effectively repair malfunctioning circuits and systems.
2 Must have ability to build and install high voltage components and systems.

3. Must have familiarity with, and ability to apply, Uniform Electrical Code standards.

4. Must have ability to work with and install 110 voltage systems.

5. Must be able to repair and/or replace malfunctioning components.

6. Must be able to prioritize job requests and train and supervise other employees.

7. Must have knowledge of, and be able to be assigned responsibility for, signal and street lighting systems.

8. Must have knowledge of Cal/OSHA and other accepted safety standards and approved methods of electrical installation.

9. Must have completed a minimum of three years of varied experience performing the duties of a journey level electrician.

B. Carpenter

1. Must have ability to repair roofs, install drywall, and apply stucco.

2. Must have ability to perform both rough and finish carpentry.

3. Must have ability to interpret and build from building plans.

4. Must have ability to prioritize job requests and train and supervise employees.

5. Must have knowledge of, and ability to apply, accepted safety standards.

6. Must have knowledge of, and ability to apply, Uniform Build Code standards.

7. Must have completed at least one year of varied experience performing the duties of a journey level carpenter.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
46 EXHIBIT C (Cont.)
C. Traffic Specialist

1. Must have knowledge of, and ability to apply, Cal/Trans manual standards as regards street markings, signage, general specifications, and traffic controls.

2. Must have ability to maintain and repair hydraulic and electrical painting equipment.

3. Must have ability to repair pumps.

4. Must have ability to prioritize job requests and train and supervise other employees.

5. Must have knowledge of, and ability to apply, accepted safety standards.

D. Irrigation Specialist

1. Must be able to maintain and repair complicated automatic irrigation systems.

2. Must possess understanding of hydraulic theory.

3. Must be able to read and build from landscape and irrigation plans.

4. Must have ability to prioritize job requests and train and supervise other employees.

5. Must have knowledge of, and ability to apply, accepted safety standards.

E. Street Maintenance Technician

1. Must be proficient in form setting and concrete estimating, pouring and finishing.

2. Must be proficient in estimating, laying and compacting asphalt concrete including proficiency in operation of light and heavy equipment such as backhoe, roller, tamper and saw.

3. Must be familiar with both concrete and asphalt concrete jobs.

4. Must be proficient in the safe operation of small machine operations including acetylene/oxygen cutting torch, coring machine, compressor and pavement breakers, skill saw and other small power tools, grinders, water and sand blaster, steam cleaner and other assorted hand tools.

General & Supervisory Employees Bargaining Unit, Teamsters Local 986 July 1, 2025 – June 30, 2028
47 EXHIBIT C (Cont.)

5. Must be able to apply Cal/OSHA standard for traffic control and other safety procedures in public right-of-way.

6. Will be responsible for the supervision of small construction crews.

7. Must have ability to prioritize job requests and train and supervise other employees.

F. Sewer/Storm Drain Specialist

1. Must be proficient in reading and understanding existing sewer maps/videos and related documents.

2. Must be proficient in operating existing sewer rodding equipment, i.e. Sreco flexible sewer rodder and assorted small and medium sewer “snakes.”

3. Must be proficient in entering and exiting enclosed areas safely including manholes and pump stations.

4. Must be proficient in operating existing heavy equipment on the beach, such as the Cat 943 tracked Front Loader.

5. Must be able to prioritize job requests and train and supervise other employees.

6. Must be able to respond to emergency requests after regular working hours.

7. Must be able to apply Cal/OSHA standard for traffic control and other safety procedures in public right-of-way.

LABOR CONTRACTS AND

UNREPRESENTED EMPLOYEES

Through labor negotiations, the City strives to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market ensuring the ability to retain and attract a high-quality workforce that delivers a wide range of services to the community.

INTRODUCTION
The Meyers-Milias Brown Act requires that local public agencies negotiate with its respective bargaining units regarding wages, hours, and working conditions. Under direction from the City Council, the Council approved a City negotiating team that was tasked with negotiating a successor MOU with each of the City’s bargaining units for new terms. The Current MOU’s for the General and Supervisory Employees’ and the Police Management Group expired on June 30, 2025.

The City’s negotiating team met and conferred with representatives of the General and Supervisory Unit and the Police Management Group to discuss wages, hours, and other terms and conditions of employment contained in the successor MOU. The City and the Teamsters in June 2025 and the Teamsters membership ratified the MOU on July 9, 2025. PMG and the City reached agreement in July, and the MOU was ratified that same month.

INTRODUCTION
Outside of the City’s represented employees, Hermosa
Beach has an unrepresented group. These 5
unrepresented employees do not have a union and are
not entitled to bargain or meet and confer under the
MMBA for wages, hours and terms and conditions of
employment like represented employees.

21classifications and 51 employees:

Teamsters Membership

ACCOUNT CLERK

BUILDING & PLANNING TECHNICIAN

BUILDING INSPECTOR

CODE ENFORCEMENT OFFICER

COMMUNITY SERVICES OFFICER

ENGINEERING TECHNICIAN

EQUIPMENT MECHANIC

MAINTENANCE WORKER I

MAINTENANCE WORKER II

OFFICE ASSISTANT

POLICE SERVICE OFFICER

PUBLIC WORKS INSPECTOR

RECREATION SPECIALIST

SENIOR ACCOUNT CLERK

SENIOR OFFICE ASSISTANT

LEAD SPECIAL EVENTS AND FILIMING COORDINATOR

SPECIAL EVENTS AND FILMING COORDINATOR

CREW SUPERVISOR

SENIOR EQUIPMENT MECHANIC

COMMUNITY SERVICES FIELD SUPERVISOR

PMG
2 classifications and 4 employees:
• Police Lieutenant
• Police Captain
Unrepresented Employees
5 classification and employees:
• HR Manager
• Finance Manager
• EA to the City Manager
• HR Analyst
• Risk Analyst
Membership

TEAMSTERS MOU
Term: 3 years - July 1, 2025 - June 30, 2028

1. Wage Rate Increase (Article 31):
• 3% effective 7/1/25.
• 3% effective 7/1/26.
• 3% effective 7/1/27.
• Bring all classifications in the unit up to the median per Comp Study on 7/1/25.

2. Shift Differential (Article 35):
• Increase shift differential: Swing shift $1.00 per hour. Graveyard shift $1.25 per hour.

3. Training Premium Pay (Article 41):
• Increase to $3 per hour.

4. Health and Welfare (Article 50):
• No medical premium increases.
• City to pay for vision insurance, provided that after changing dental providers, the cost of the dental premium is reduced by at least 20%.
• $750 Cash In Lieu if opting out of insurance.

TEAMSTERS MOU

5. Bilingual Pay (Article 41):
• Reduce premium pay from 5% of salary to $100/month and remove cap.

7. Vacation (Article 42):

Increase vacation hours for tenured employees:
• 1st Year 80 hours
• 2nd Year 80 hours
• 4th Year 96 hours
• 6th Year 120 hours
• 10th Year 144 hours
• 14th Year 168 hours
• 18th Year 192 hours

8. Holidays (Article 21)
Add ½ Christmas Eve and ½ day NYE holiday and delete 10 hours flex time.

POLICE MANAGEMENT GROUP MOU
Term: 3 years - July 1, 2025 - June 30, 2028
Wage Rate Increase
• 3% effective 7/1/25
• 3% effective 7/1/26
• 3% effective 7/1/27
• Bring all classifications up to median 7/1/25
Education Incentives
Increase advanced POST Certificate percentage from 5% to 10% to mirror POA. Eligible to receive after 2 years in position of Lt. or Capt.

Longevity Pay
Mirror POA Language and add:

Eligible for 5% upon commencement of the fifth (5th) year (Not reportable to PERS, as PERS requires "exceeding of 5 years")

PMG MOU
Holidays
½ day (5 hours) Christmas Eve and ½ day (5 hours) New Year’s Eve and delete 10 hours holiday flex time.

Deferred Comp. Match
Increase deferred comp. match from $25/month to $50/month.

Uniform Allowance
Increase to $1,200 (currently $1,000)
Physical Fitness / Officer Wellness Incentive
• 10 hours of wellness time (non-cashable) upon submitting proof of an annual physical exam. • Up to $500 reimbursement for wellness memberships or fitness events. • Delete language on being able to work out for 30 mins on City time.

Vacation
Add the following to match POA:
• Commencing with the 18th year, at the rate of 184 hours/year. • Commencing with the 19th year, at the rate of 192 hours/year. • Commencing with the 20th year, at the rate of 200 hours/year.

UNREPRESENTED REPORT
Wages
• 3% effective 7/1/25
• 3% effective 7/1/26
• 3% effective 7/1/27
• Bring all classifications up to median 7/1/25
Premium Pay
$350 flat rate per month for job-related certification and $400 for master’s degree.

Wellness Reimbursement
$500
Deferred Comp
Increase to $50 per month

UNREPRESENTED REPORT
Deferred Comp. Match
Increase deferred comp. match from $25/month to $50/month.

Performance Bonus Correction
Add 3 classifications (HR Analyst, Risk Analyst, EA) to be eligible to match PAE and remove OT eligibility.

Add 5th step for HR Manager
Position was part of Management MOU but moved to Unrepresented in 2024. Only unrepresented position without a 5th step.

PAE SIDE LETTER
Vacation
Increase vacation hours for tenured employees:
• 6th Year 120 hours
• 10th Year 144 hours
• 14th Year 168 hours
• 18th Year 192 hours

Fiscal Impact
The total cost of the negotiated changes is estimated to be $1,489,780 for FY 2026-2028, which will be included in each subsequent year’s proposed budgets.

Recommendation
Staff recommends that the City of Hermosa Beach City Council approve the Resolution and successor Memoranda of Understanding between the City of Hermosa Beach and the General and Supervisory Employees’ Bargaining Unit, Teamsters, Local 986 and the Police Management Group for the period of July 1, 2025, through June 30, 2028.

Staff further recommends that the City of Hermosa Beach City Council approve the Resolution and Side Letter between the City of Hermosa Beach and the Professional and Administrative Employees and the Unrepresented Employees Salary and Benefits Resolution.

Cyndi Stafford, Human Resources
[email protected]
THANK YOU!

City of Hermosa Beach | Page 1 of 3
Meeting Date: August 26, 2025
Staff Report No. 25-AS-058
Honorable Mayor and Members of the Hermosa Beach City Council

ADOPT A RESOLUTION TO ADOPT THE SIDE LETTER TO THE PROFESSIONAL

AND ADMINISTRATIVE EMPLOYEE GROUP MEMORANDUM OF
UNDERSTANDING FOR FISCAL YEARS 2026-2028
(Human Resources, Cynthia Stafford)
Recommended Action:

Staff recommends City Council adopt a Resolution to adopt the Side Letter to the Professional and Administrative Employees (PAE) Memorandum of Understanding (Attachment 1).

Executive Summary:

In the recently approved Memorandum of Understanding for the Professional and Administrative Employees bargaining unit, it contained a “Me Too” clause that indicated if another bargaining unit received salaries or benefits greater than PAE, that PAE would also be entitled to the additional benefits and/or salary. The City of Hermosa Beach City Council approved a Memorandum of Understanding for the General and Supervisory Employees’ Bargaining Unit, Teamsters Local 986, that contained additional vacation time for tenured employees. In accordance with Article 50 of the 2025-2028 MOU for the Professional and Administrative Employee Group, PAE is being afforded this additional vacation time.

Background:

The Meyers-Milias Brown Act (MMBA) requires that local public agencies negotiate with their respective bargaining units regarding wages, hours, and working conditions. The current Memoranda of Understanding for PAE is from July 1, 2025, through June 30, 2028.

The MMBA allows agencies and the recognized employee associations to adopt changes to the MOUs to address emerging issues without impacting the current MOU provisions, in the form of a side letter, assuming the changes were mutually agreed upon and the MOU does not contain a zipper clause1.

1 The Public Employment Relations Board defines a zipper clause as a clause in a collective bargaining agreement that permits both parties to refuse to bargain over changes to matters covered by the clause.

City of Hermosa Beach | Page 2 of 3
The City’s aim through labor negotiations is to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market to retain and attract a highquality workforce to serve the community across a range of services. Periodically, during the term of an MOU, the City needs to make modifications to MOU provisions to meet the changes and dynamic needs of Hermosa Beach.

Past Council Actions
Meeting Date Description
June 24, 2025 City Council approved the Memorandum of Understanding (MOU) between the City of Hermosa Beach and Professional and Administrative Employee Group (PAE) for the 2026–
2028 fiscal years.

Analysis:

The City of Hermosa Beach has 11 benchmark agencies for which the city compares its salaries and benefits. These 11 benchmark agencies are within our labor market and benchmarking our salaries and benefits allows the City to remain competitive in the tight labor market. Of the 11 benchmark agencies, Hermosa Beach ranked in the bottom third (1/3) of vacation hours offered to employees, with only four other agencies providing our maximum of 160 hours of vacation for employees with more than 18 years of service.

Conversely, our benchmark agencies afforded their employees up to more than 130 hours of accrued vacation time for the most tenured staff, with the average being 40 more vacation hours than Hermosa Beach’s employees.

The tentative Side Letter contains the following amendment to Article 35 (Vacation):

Year of Service Max Annual Accrual New Max Accrual Rate 1 st – 3rd 80 hours No change
4 th – 5th 96 hours No change
6 th – 9th 112 hours 120 hours
10th – 13th 128 hours 144 hours
14th – 17th 144 hours 168 hours
18th 160 hours 192 hours
No changes were made the amount of vacation time an employee can cash out annually, thus having no direct financial impact to the City.

Fiscal Impact:

There is no direct fiscal impact associated with the recommended action since no changes were made to the amount of vacation time an employee can cash out annually.

MOU approved employee vacation cash outs are budgeted based on historical trends.

City of Hermosa Beach | Page 3 of 3
Attachments:

1. Draft Resolution and Side Letter

2. Professional and Administrative Employees MOU 2025-2028 Respectfully Submitted by: Cynthia Stafford, Human Resources Noted for Fiscal Impact: Henry Chao, Finance Manager
Concur: Brandon Walker, Administrative Services Director Legal Review: Todd Leishman, Interim City Attorney
Approved: Steve Napolitano, Interim City Manager

CITY OF HERMOSA BEACH
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH, CALIFORNIA, ADOPTING A SIDE LETTER TO THE

MEMORANDUM OF UNDERSTANDING WITH THE PROFESSIONAL AND
ADMINISTRATIVE EMPLOYEE GROUP.

WHEREAS, employees of the City of Hermosa Beach, California represented by the Profession and Administrative Employee Group, have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and, WHEREAS, the Employee Association and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding; and, WHEREAS, the Employee Association and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Memorandum of Understanding.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Hermosa Beach has a Memorandum of Understanding with the Professional and Administrative Employees Group for the period July 1, 2025, through and including June 30, 2028.

SECTION 2. The City of Hermosa and the Professional and Administrative Employees Group desire to enter into a Side Letter to amend the Memorandum of Understanding for the period July 1, 2025, through and including June 30, 2028, as shown on Exhibit A.

SECTION 2. This resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and

adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted.

PASSED, APPROVED and ADOPTED on this 26
th day of August 2025.

Rob Saemann
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Todd Leishman
City Clerk Interim City Attorney

EXHIBIT A
Amend Article 35 (Vacation) as follows:
• 1st Year: 80 hours
• 2nd Year: 80 hours
• 4th Year: 96 hours
• 6th Year: 112 120 hours
• 10th Year: 128 144 hours
• 14th Year: 144 168 hours
• 18th Year: 160 192 hours
All other Articles, provisions, Sections, and Exhibits of the MOU not modified herein shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto cause this Side Letter Agreement to be effective the 1st day of July 2025.

PROFESSIONAL AND ADMINISTRATIVE

EMPLOYEE GROUP

CITY OF HERMOSA BEACH
________________________________ _________________________________ Vicky Barker
City Employees Associates
Cynthia Stafford
Chief Negotiator
________________________________ _________________________________ Kambria Vint
Recreation Coordinator
Steve Napolitano
Interim City Manager
_________________________________ ___________________________________ John Cordova
Public Works Superintendent
Brandon Walker
Administrative Services Director
_________________________________
Kim Swindell
Administrative Assistant

Page
4 of 4 RES NO. 25-

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF HERMOSA BEACH
AND

PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP
JULY 1, 2025 - JUNE 30, 2028

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
2 TABLE OF CONTENTS
ARTICLE 1 – PREAMBLE................................................................................................... 4 ARTICLE 2 – PARTIES TO MEMORANDUM ..................................................................... 4 ARTICLE 3 – RECOGNITION............................................................................................. 4 ARTICLE 4 – MUTUAL RECOMMENDATION.................................................................... 4 ARTICLE 5 – SCOPE OF REPRESENTATION.................................................................. 5 ARTICLE 6 – FULL UNDERSTANDING, MODIFICATION, WAIVER ................................. 5 ARTICLE 7 – CONSTITUTIONALITY ................................................................................. 5 ARTICLE 8 – MANAGEMENT RIGHTS.............................................................................. 5 ARTICLE 9 – NON-DISCRIMINATION................................................................................ 7 ARTICLE 10 – PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES
PURPOSE AND INTENT .................................................................... 8 ARTICLE 11 – ACCESS TO WORKSTATION.................................................................... 8 ARTICLE 12 – BULLETIN BOARDS................................................................................... 8 ARTICLE 13 - ASSOCIATION ACCESS TO NEW EMPLOYEE ORIENTATION & INFORMATION ................................................................................... 9 ARTICLE 14 – PAYROLL DEDUCTION ............................................................................. 9 ARTICLE 15 – JOB DESCRIPTIONS AND CLASSIFICATIONS ........................................ 9 ARTICLE 16 – LABOR/MANAGEMENT COMMITTEE..................................................... 10 ARTICLE 17 – PROPER CLASSIFICATION COMPENSATION....................................... 10 ARTICLE 18 – PROBATION ............................................................................................. 10 ARTICLE 19 – SENIORITY............................................................................................... 10 ARTICLE 20 – REDUCED HOUR POSITIONS................................................................. 11 ARTICLE 21 – JOB SHARING.......................................................................................... 11 ARTICLE 22 – DEFERRED COMPENSATION................................................................. 12 ARTICLE 23 – REST PERIOD.......................................................................................... 12 ARTICLE 24 – WORK HOURS ......................................................................................... 12 ARTICLE 25 – UNIFORMS ............................................................................................... 13 ARTICLE 26 – WAGE RATE............................................................................................. 13 ARTICLE 27 – BILINGUAL PAY ....................................................................................... 14 ARTICLE 28 – MERIT PAY (Reportable to PERS) ........................................................... 14 ARTICLE 29 – ACTING PAY............................................................................................. 15 ARTICLE 30 – ADDITIONAL DUTIES PAY....................................................................... 16 ARTICLE 31 – EDUCATIONAL ALLOWANCE ................................................................. 16

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
3 ARTICLE 32 – OVERTIME................................................................................................ 17 ARTICLE 33 - MANAGEMENT LEAVE............................................................................. 18 ARTICLE 34 – COMPENSATORY TIME FOR NON-EXEMPT EMPLOYEES.................. 19 ARTICLE 35 – VACATION................................................................................................ 19 ARTICLE 36 – SICK LEAVE ............................................................................................. 20 ARTICLE 37 – BEREAVEMENT LEAVE........................................................................... 20 ARTICLE 38 – JURY DUTY .............................................................................................. 21 ARTICLE 39 – MILITARY LEAVE ..................................................................................... 21 ARTICLE 40 – HOLIDAYS ................................................................................................ 21 ARTICLE 42 – HEALTH AND WELFARE ......................................................................... 23 ARTICLE 43 – SHORT & LONG TERM DISABILITY........................................................ 24 ARTICLE 44 – FAMILY AND MEDICAL CARE LEAVE .................................................... 25 ARTICLE 45 – LAYOFF .................................................................................................... 25 ARTICLE 46 – RETURN TO WORK FROM LAYOFF....................................................... 25 ARTICLE 47 – REDUCTION IN LIEU OF LAYOFF........................................................... 26 ARTICLE 48 – SELECTION OF INDUSTRIAL ACCIDENT DOCTOR OR MEDICAL FACILITY AND CONTINUATION OF HEALTH BENEFITS .............. 27 ARTICLE 49 – GRIEVANCES/APPEAL OF DISCIPLINE................................................. 27 ARTICLE 50 - REOPENERS/ME-TOO CLAUSE.............................................................. 30 ARTICLE 51 – TERM OF AGREEMENT........................................................................... 30 Exhibit A .......................................................................................................... 32

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
4 MEMORANDUM OF UNDERSTANDING

FOR THE

PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP
JULY 1, 2025 – JUNE 30, 2028
ARTICLE 1 – PREAMBLE
The provisions of this Agreement have been developed in the interest of promoting and improving employee relations between the City of Hermosa Beach, California and the Professional and Administrative Employees who are represented by the Hermosa Beach Professional and Administrative Employees (P&AE).

ARTICLE 2 – PARTIES TO MEMORANDUM
This Memorandum of Understanding, hereinafter referred to as the "MOU" or the "Agreement", has been entered into, pursuant to the laws of the State of California and the City of Hermosa Beach, California, by and between the CITY OF HERMOSA BEACH, hereinafter referred to as the "City" or as "Management", and the PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES, hereinafter referred to as the "Association".

ARTICLE 3 – RECOGNITION
The City recognizes the Association as the exclusive bargaining representative for all employees who are or become employed in those job classifications contained on Exhibit "A”, which is attached hereto and made a part of this Agreement. The parties recognize that this Agreement contains wages, benefits and working conditions that pertain only to members of the P&AE.

ARTICLE 4 – MUTUAL RECOMMENDATION
This Agreement constitutes a mutual recommendation by the parties to the City Council.

This Agreement shall become effective upon approval by the City Council of the City.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
5 ARTICLE 5 – SCOPE OF REPRESENTATION
The Scope of Representation of the Association shall include all matters relating to employment conditions and employer-employee relations including wages, hours, and other terms and conditions of employment.

ARTICLE 6 – FULL UNDERSTANDING, MODIFICATION, WAIVER
A. It is intended that this Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or Agreements by the parties whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

B. Except as specifically provided herein, it is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right and agrees that the other shall not be required to negotiate with respect to any subject or matter covered herein during the term of this Agreement. Association members and the City can meet and confer on mutually desirable changes as needed.

C. Any agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall not be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved and implemented by the City Council.

D. The waiver of any breach, term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

ARTICLE 7 – CONSTITUTIONALITY
If any section, subsection, sentence, clause or phrase of this Agreement is for any reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portion of this Agreement.

ARTICLE 8 – MANAGEMENT RIGHTS
A. It is agreed that during the term of this Agreement herein, the exercise of the following powers, rights, authority, duties and responsibilities by the City, the adoption of policies, rules, regulations and practices in furtherance thereof, and the use of judgment and the discretion in connection therewith, shall be limited only by the specific and express terms of this Memorandum of Understanding, City Personnel Ordinance, Personnel Rules and Regulations, and other statutory law.