Hermosa Beach City Council
August 26, 2025

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
6 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 P&AE 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 work force, 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.

18.Determine administration of discipline.

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

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
7 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.

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

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
8 to report the conduct to the supervisor, Department Director, Human Resources Manager or the City Manager in a timely manner.

ARTICLE 10 – PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES

PURPOSE AND INTENT
A. The City is cognizant of the crucial role that the Professional and Administrative Employees (P&AE) have in implementing and enforcing the City’s policies, practices and procedures. The P&AE wholeheartedly accept these responsibilities and are committed to the success of City goals. The P&AE agrees to encourage Employees in an attitude of excellence of job performance and increased productivity.

B. Both the City and the P&AE must positively support these concepts and mutually promote a cooperative alliance for carrying out these provisions. The P&AE is 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 P&AE as an outstanding management support team.

ARTICLE 11 – ACCESS TO WORKSTATION
The City agrees to grant official representatives of the Association 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 Association representative during the working hours of said employee and efforts will be made to minimize work time spent by Association representative. It is agreed that the Association representative shall be permitted to conduct a reasonable amount of Association business regarding grievances/appeals during working hours without loss of pay and that the Association may use City facilities to conduct meetings when such facilities are available.

ARTICLE 12 – BULLETIN BOARDS
The City and Association 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.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
9 ARTICLE 13 - ASSOCIATION 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 Association with 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 Association, which could mean representational attendance or correspondence. The Association 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 to City Employees Associates and the Association 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 Association and the City Employees Associates with the name, job title, department, work location, home and personal cellular telephone numbers, personal email addresses and home address of all bargaining unit employees every one hundred twenty (120) days.

ARTICLE 14 – PAYROLL DEDUCTION
It is mutually agreed that the City will, during the term of this Agreement, deduct moneys and remit to the Association as authorized by employee’s signed Association Membership Form for dues, providing there is not more than one deduction per pay period.

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

B. It is further agreed that when a class specification is created, the City and Association will meet and attempt to reach agreement on the proposed classification, pay and job description.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
10 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 Association. 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
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.

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

B. 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

2. Ability

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

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
11 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 – 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.

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) hours/week). Probationary period shall be twelve (12) months and at least 1,044 hours.

D. City may create such positions; employees may volunteer to occupy such positions.

No permanent forty (40) hour employee may be required to accept a reduced hour position.

ARTICLE 21 – 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.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
12 ARTICLE 22 – 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. 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 fifty dollars ($50) per month.

ARTICLE 23 – 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 24 – WORK HOURS
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 9/80schedule: 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 9-hour workdays and one 8-hour workday, and (2) the subsequent week consists of four 9-hour workdays with one day off. The “work week” for FLSA overtime purposes shall be established as four

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
13 hours into the shift of the eight-hour day and in such a manner that no Consecutive seven-day (168 hour) period shall exceed 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.

ARTICLE 25 – UNIFORMS
Uniforms will be provided to Association members as approved by the Department Director.

ARTICLE 26 – WAGE RATE
The City agrees to hire and appropriately compensate capable Professional and Administrative 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.

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 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%).

4. Effective July 1, 2027, 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 Association 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

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
14 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, appointment may be made at a higher step.

E. All employees covered by this Agreement shall receive a timely, annual performance review.

ARTICLE 27 – BILINGUAL PAY
A. The City agrees to pay a monthly premium of one hundred dollars ($100) 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.

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. In the event of call-out or overtime, compensation shall be in accordance with the appropriate provisions of this Agreement.

C. Employees with bilingual ability will be tested for oral skills in the designated language through an examination process mutually agreed to by the Human Resources Manager and Association. Applicants must successfully pass the examination to be eligible for bilingual premium.

ARTICLE 28 – MERIT PAY (Reportable to PERS)
A. The following P&AE Employees will be eligible to receive Merit Pay for superior performance: Associate Engineer, Assistant Engineer, City Engineer, Senior Engineer, Building & Code Enforcement Official, Associate Planner, Assistant Planner, Planning Manager, Public Works Superintendent, Public Works Assistant Superintendent, Revenue Supervisor, Senior Recreation Supervisor, Management Analyst, GIS & IT Analyst, Accountant, Environmental Program Manager, Deputy City Engineer, Recreation Coordinator and Senior Management Analyst. Said bonus pay will be up to a maximum of five percent (+5%) of base monthly pay payable for sixmonth (bi-annual) increments. The two bi-annual periods are July 1 – December 31 and January 1 – June 30.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
15 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 the full five percent (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.
5% Superior Performance Bonus (employee met nearly 100% of the goals) 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) C. If an employee voluntarily leaves the City before the end of the rating period or becomes a member of the Professional and Administrative Employee Bargaining Unit after the start of the rating period the Performance Bonus may be prorated.

D. 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.

E. 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.

ARTICLE 29 – 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 vacancy 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 ten percent (10%) increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
16 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 nine hundred sixty (960) hours per fiscal year.

ARTICLE 30 – 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 assignment. Any employee receiving Acting Pay shall not be eligible for Additional Duties 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 31 – EDUCATIONAL ALLOWANCE
A. City agrees that P&AE 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 for any CSU campus rates paid by the City in advance, subject to approval of the City Manager. Employees who attend a non-CSU campus will receive up to the average tuition rate of CSULB, CSUDH & CSULA.

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

C. 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 receive payment.

D. 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.).

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
17 ARTICLE 32 – OVERTIME
A. The City agrees to pay association members in the following classifications time and one-half (1-1/2) their regular rate of pay for all hours worked in excess of forty (40) hours worked in a work week. Overtime may be paid in either cash or compensatory time earned as part of the regular payroll process. The City will pay overtime to employees in eligible classifications in the same manner as paid to the General & Supervisory Employees Association.

B. 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.

C. For example, if a non-exempt employee is scheduled to work overtime at the end of their shift for three (3) hours and takes two (2) hours sick time during that same workday, the employee would receive straight time for the first two (2) extra hours and time and one-half (1-1/2) for the remaining one (1) hour.

D. The City and Association agree that non-exempt 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 a non-exempt 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 for a total of 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 a non-exempt 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 a total of two and onehalf (2-1/2) times the employees’ regular rate of pay.

G. If a holiday falls on a non-exempt 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. Classifications eligible for overtime compensation in accordance with the FLSA include:

Administrative Assistant

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
18 Deputy City Clerk
Administrative Services Coordinator
Crime & Intelligence Analyst
Emergency Management Coordinator
Executive Assistant to Police Chief
I. The following classifications 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:

Accountant
Associate Engineer
Associate Planner
Assistant Engineer
Assistant Planner
Building and Code Enforcement Official
City Engineer
Deputy City Engineer
Revenue Supervisor
Deputy City Engineer
Environmental Program Manager
GIS & IT Analyst
Management Analyst
Senior Management Analyst
Public Works Superintendent
Recreation Coordinator
Senior Engineer
Senior Recreation Supervisor
Public Works Assistant Superintendent
Planning Manager
ARTICLE 33 - MANAGEMENT LEAVE
Employees in exempt classifications listed above shall receive eighty (80) hours of Management Leave each calendar year for extraordinary assignments in addition to fixed holidays, vacation, and Bereavement Leave. Management Leave does not accumulate or carry over and it must be used each year. If not used by December 31st of each calendar year, any unused Management Leave shall be forfeited. Said leave shall have no monetary value and shall be prorated for partial years’ service upon initial appointment.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
19 ARTICLE 34 – COMPENSATORY TIME FOR NON-EXEMPT EMPLOYEES A. In lieu of pay, Compensatory Time may be earned at a rate of one and one-half (1- 1/2) times the actual hours worked in an overtime situation as defined by Article 32 for non-exempt employees. 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 as 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 40 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 granted unless it would unduly disrupt operations.

E. Employees may elect to cash-in accrued compensatory time quarterly each calendar year in January, April, July, and October.

ARTICLE 35 – VACATION
A. It is agreed that all Employees covered by this Agreement shall accrue vacation as follows:

Years of Service Accrued Per Year
* Probation Period 1st Year 80 hours
Commencing with 2nd Year 80 hours
“ “ 4th Year 96 hours
“ “ 6th Year 120 hours
“ “ 10th Year 144 hours
“ “ 14th Year 168 hours
“ “ 18th Year 192 hours
B. Employees may use (subject to Department Director’s approval) up to one (1) week of vacation six (6) months after hire date (after the halfway point of probationary period).

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

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
20 D. Employees shall be reimbursed for 100% unused vacation days accrued upon resignation, retirement or termination from their employment with the City.

ARTICLE 36 – SICK LEAVE
A. Employees shall accrue sick leave at the rate of ten (10) hours per month. After 200 hours are accrued, a unit member 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 ninety-six (96) hours of sick time to vacation time annually, accrued in excess of two hundred (200) hours provided that the vacation bank does not exceed allowed maximum level. The cash outs will take place based on the accrual balance as of November 16th and paid on the check of December 5th.

B. Employees covered by this Agreement may, at any time or 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. Sick leave accrued prior to June 30, 2017, shall be eligible for one hundred percent 100% cash-out at resignation or retirement. 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, a unit member’s unused accumulated sick leave at the time of retirement may be converted to additional service credit.

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

D. Additional information on eligible leaves, including statutory leaves, can be found in Rule XXV of the City of Hermosa Beach’s Personnel Rules.

ARTICLE 37 – BEREAVEMENT LEAVE
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 step-child. 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. Employees may pre-designate and substitute other immediate family 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). Bereavement Leave shall be taken within twelve (12) months of the death of the

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
21 covered family member and does not need to be consecutive nor will pay in lieu of unused leave for bereavement be provided.

ARTICLE 38 – 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 39 – MILITARY LEAVE
All Employees covered by this Agreement 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.

ARTICLE 40 – HOLIDAYS
A. All Employees covered by this Agreement shall receive one hundred twenty (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 (five (5) hours) Christmas Eve; Christmas Day, half-day (five (5) hours) New Year’s Eve.

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. The City will provide a holiday schedule to the Association for review prior to January 1 of each year. For all holidays that fall on a Friday or Saturday, City Hall offices will be open regular hours on Monday and employees will receive compensatory time. For all holidays that fall on a Sunday, the holiday will be observed on Monday.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
22 ARTICLE 41 – RETIREMENT/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, and ending 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”; AB 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 fifty percent (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. 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 five percent (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 five hundred dollars ($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.

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 in the City 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

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
23 be provided to the City within sixty (60) days. The City will not provide retroactive reimbursement for payments not documented within sixty (60) days of payment.

5. Any Retiree 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.

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 four hundred dollars ($400) 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 reached the eligibility of State of Federal Medicaid, currently sixty-five (65) years of age.

ARTICLE 42 – 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).

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 Agreement. City shall meet and confer with the bargaining unit should there be a change in providers or a change in benefit level.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
24 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 medical/health insurance, for the benefit years beginning January 1, 2023, and later, the City’s maximum contribution toward medical insurance for each employee’s selected plan and level of coverage will be one thousand, eight hundred seventy-five dollars and thirty-nine cents ($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. An employee who demonstrates proof of medical insurance coverage available through a spouse or domestic partner may receive a cash payment of seven hundred fifty dollars ($750) per month in lieu of City provided coverage.

F. For dental insurance, the City shall pay the monthly premium contribution for full family coverage for dental insurance, including PPO.

G. For psychological health, the City will continue to pay for the benefit.

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

I. 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 + 2 or more dependents.

ARTICLE 43 – 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 nine thousand dollars ($9,000) per month and begins after ninety (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 one hundred percent (100%) of regular take-home pay.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
25 ARTICLE 44 – 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 45 – 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.

B. The criterion used in determining the order of separation shall be seniority, pursuant to the Municipal Code, Chapter 2.76 – Civil Service.

C. Date of hire shall include all City service including CETA and FEEA time but not part time/no benefit service.

D. Seniority shall not include the time which was terminated by voluntary resignation from the competitive service, layoff, unpaid leave of absence or suspension from the competitive service but shall include time served on military leave of absence.

E. 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 B, C and D.

F. Employees laid-off shall have the City paid portion of their medical insurance premiums paid for two months following the date of lay-off.

G. The City will endeavor to provide each affected Employee and the Association with as much notice as possible, with a minimum thirty (30) days advance notice to each affected Employee.

ARTICLE 46 – 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.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
26 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 years unless re-employed 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 list.

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 email to last known email and 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 and email 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 Association bargaining agent. Employees to be laid off shall submit to the Human Resources office their current address and email 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 a lay-off, all accruals will be based on criteria set forth in Article 45 Layoff, paragraphs B, C, and D.

ARTICLE 47 – REDUCTION IN LIEU OF LAYOFF
It is mutually agreed that an Employee whose position is abolished shall be governed by Municipal Code 2.76.200 – Civil Service.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
27 ARTICLE 48 – SELECTION OF INDUSTRIAL ACCIDENT DOCTOR OR MEDICAL

FACILITY AND CONTINUATION OF HEALTH BENEFITS
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 City’s 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 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.

E. Accrual of vacation, sick, and holidays shall be governed by the provisions of Article 43 B. C and D.

F. 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 49 – GRIEVANCES/APPEAL OF DISCIPLINE
This Grievance/Appeal Procedure shall be used to resolve disputes arising from any allegation by Professional and Administrative Employees that the City has violated the terms of this Resolution.

A. 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.

B. Grievances

1. Step 1. The Grievance shall be presented in writing to the Department Director. A meeting with the employee, Association Representative(s) and Department Director will be arranged at a mutually agreeable location and time to review and

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
28 discuss the Grievance. Such meeting will take place within ten (10) working days from the date the Grievance is received by the Department Director. The Department Director may invite other members of management to be present at such meeting. The Department Director will give a written reply by the end of (10) working days following the date of the meeting, and the giving of such reply will terminate Step 1.

2. Step 2 - If the Grievance is not settled in Step 1, it shall be submitted to the City Manager. The employee, Association Representative(s) and City Manager shall, within (10) working days after the termination of Step 1, arrange a meeting to be held at a mutually agreeable location and time to review and discuss the Grievance. Such meeting will take place within ten (10) working days from the date the Grievance is referred to Step 2. The City Manager Director may invite other members of management to be present at such meeting. A decision shall be rendered within ten (10) working days from the date of such meeting. The decision shall be in writing stating the reasons for the decision.

3. Step 3 - Grievances regarding the provisions contained within this memorandum of understanding, 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) working days of the City Manager’s determination.

4. As soon as possible and in any event not later than fourteen (14) 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 fourteen (14) working days, an arbitrator shall be selected from a list of seven (7) arbitrators submitted by the 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.

5. Either the City or the Association may call any employee as a witness, and the City agrees to release said witness from work if they are on duty.

6. 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 the by the respective parties in the presence of each other.

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

8. The arbitrator may hear and determine only one grievance at a time without the express agreement of the City and the Association. The parties shall share

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
29 equally the expense of the cost of the arbitration, with the exception of counsel's fees.

C. Appeals of Discipline

1. Step 1: The Appeal will be presented to the Department Director within ten (10) working days after receipt of the disciplinary action. A meeting with the employee, Association Representative(s) and Department Director will be arranged at mutually agreeable location and time to review and discuss the Appeal. Such meeting will take place within ten (10) working days from the date the Appeal is received by the Department Director. The Department Director may invite other members of management to be present at such meeting. The Department Director will give a written reply by the end of the tenth (10th) working day following the date of the meeting.

2. An Appeal of Discipline in the form of a Written Reprimand shall not be appealable after Step 1, however an employee may prepare a written response to the reprimand to be placed in the employee’s personnel file.

3. Step 2: If the Appeal is not settled in Step 1, it shall be submitted to the City Manager. The employee, Association Representative(s) and City Manager shall, within ten (10) working days after the termination of Step 1, arrange a meeting to be held at a mutually agreeable location and time to review and discuss the Appeal. Such meeting will take place within ten (10) working days from the date the Appeal is referred to Step 2. The City Manager Director may invite other members of management to be present at such meeting. A decision shall be rendered within ten (10) working days from the date of such meeting. The decision shall be in writing.

4. An appeal of discipline of a suspension of less than five (5) days or a reduction in pay with a financial loss of less than five days shall not be appealable beyond Step 2.

5. Step 3: Appeal to the City Council. Major discipline may be appealed within ten (10) working days from receipt of the denial of the Step 2 in accordance with Personnel Rule XXX Appeal to the City Council. Major discipline includes suspension without pay for five (5) or more days, demotion, a reduction in pay that is equal to the financial loss caused by a suspension without pay for five (5) or more days, demotion, and termination for cause.

D. Time limits, as set forth in this Article, may be extended by mutual agreement between the parties.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
30 ARTICLE 50 - REOPENERS/ME-TOO CLAUSE
A. The parties agree to reopen 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 PAE 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 move to a bi-weekly payroll all bargaining units in the City must agree to this change by mutual consent.

2. The City and PAE 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. Any changes to the contribution for medical coverage can only be made by mutual consent.

B. During the term of this MOU, if any other bargaining unit in the City of Hermosa Beach, except the Police Officers’ Association and the Police Management Association, receive higher increases to the proposed cost of living increases, as described in Article 28 Wage Rate, or additional benefits not afforded to P&AE, the City agrees to provide the same such increases and improvements to the Association.

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

ARTICLE 51 – TERM OF AGREEMENT
This Agreement shall commence July 1, 2025, and continue until midnight June 30, 2028.

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
31 IN WITNESS WHEREOF, the parties hereto cause this Agreement to be executed this __________ day of __________, 2025.

PROFESSIONAL & ADMINISTRATIVE

EMPLOYEE GROUP OF HERMOSA BEACH CITY OF HERMOSA BEACH

NEGOTIATING COMMITTEE
_________________________________ _______________________________ 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 Tiffany Nguyen, Human Resources Manager

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
32 Exhibit A

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
33

Professional & Administrative Employees
July 1, 2025 – June 30, 2028
34

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 6
Meeting Date: August 26, 2025
Staff Report No. 25-AS-067
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 HERMOSA BEACH POLICE OFFICERS’ ASSOCIATION BARGAINING GROUP EFFECTIVE JULY 1, 2025 – JUNE 30, 2028
(Human Resources Manager Tiffany Nguyen)
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 Hermosa Beach Police Officers’ Association (POA) Bargaining Group (Attachment 2) for the period of July 1, 2025 through June 30, 2028.

Executive Summary:

Negotiations for a successor to the Memorandum of Understanding (MOU) between the City and the Hermosa Beach Police Officers’ Association (POA) have resulted in a tentative agreement. The City and the Hermosa Beach POA 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 in the Discussion section below.

The total estimated cost of the negotiated changes is $2,163,000 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. Existing agreements with the City’s bargaining units expired on June 30, 2025 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 in order to retain and attract a high-quality 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 6
The City’s negotiating team met and conferred with representatives of the Hermosa Beach POA 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 Officer
Police Sergeant
The parties have reached a tentative agreement within the authority provided by City Council and on the terms described below. The membership of the Hermosa Beach POA met and ratified the terms of the tentative agreement on August 12, 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 Hermosa Beach POA, include the following negotiated terms:

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

2. Article 13 – Base Pay. The parties agreed to the following salary increases over the next three years.

A. Effective July 1, 2025, the the base salary table will be increased by 11% for all classiciations. This increase includes a market adjustment (8%) and a cost-ofliving increase (3%).

B. 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%).

C. 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 11 – Work Schedule
A. Officers and Sergeants assigned to patrol, traffic and K-9 shall work a 3/26 schedule and shall work eight payback days per year, which may be scheduled throughout the year.

B. Detectives shall work a year-round schedule of 9.5 hours per week.

City of Hermosa Beach | Page 3 of 6

4. Article 14 – Overtime Practices
M. 1. When an officer is physically called to court, they shall be credited on an hour-for-hour basis for the time actually spent in court. They shall receive a minimum four (4) hours paid at time and a half for the first appearance on a given day and a minimum two (2) hours paid at time and a half for a second appearance on the same day. Travel time shall be included for any subpoenaed appearance other than to the Torrance Courthouse.

5. Article 15 – Insurance Coverage
A. Life Insurance
The City shall provide a life insurance policy for each employee, payable in the amount of $150,000 upon such employee’s death.

6. Article 16 - Deferred Compensation.

The City shall make a monthly contribution on behalf of each unit employee in the amount of $50 to either (1) Employee’s 457(b) deferred compensation account, or (2) the PORAC RMT based upon the bargaining unit’s election.

7. Articles 17, 19, 21, and 24 – Lateral Employee Incentive Article 17 – Retirement (retiree medical – Tier III), Article 19 – Vacation, Article 21 – Sick Leave, and Article 24 – Longevity, shall be modified so that lateral employees be provided with credit for up to ten years of sworn law enforcement service with another agency towards meeting the City’s service time requirements for each benefit, subject to verification and certification by Human Resources.

8. Article 19 – Vacation
A. Effective July 1, 2025, vacation accrual rates for all unit employees shall be as follows:

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

2. Commencing with the 5th year, at the rate of 120 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.

City of Hermosa Beach | Page 4 of 6
B. An employee covered by this Agreement may accrue vacation time to a maximum of 270 hours. Cash out of any earned but unused vacation accrual in excess of 270 hours (as of January 31st each year) shall be automatically cashed out as part of the February 20th payroll.

C. A unit member with a minimum of ten (10) years of consecutive service as a sworn law enforcement officer with another law enforcement agency may request and be credited with up to ten (10) years of prior service for purposes of setting the unit member’s vacation accrual rate under this provision, subject to verification and certification by Human Resources.

9. Article 20 – Holidays
A. Effective July 1, 2025, all employees shall be credited each month with 12 hours of paid holiday leave.

10. Article 29 – Special Assignment Premiums, Acting Pay N. Acting Pay.

1. 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 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 5% increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement.

2. 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 per fiscal year.

11. Article 30 – Physical Fitness Time
Employees shall receive 30 minutes of Comp Time (CTO) for working out a minimum of 30 minutes, prior to, or after, an assigned work shift, with a maximum credit of 60 hours per year. Employees will notify the watch commander (or designee) when they have worked out, immediately prior to, or immediately after, an assigned work shift, and will certify the total workout time by completing a request for CTO and submitting documentation of their work-out within the same pay period for which CTO credit is requested.

City of Hermosa Beach | Page 5 of 6

12. New Article: Article 41 – Bilingual Pay
The City shall pay one hundred dollars ($100) per month to each employee who has demonstrated oral proficiency in Spanish or another language which has been demonstrated to be of value to the City in its law enforcement operations.

Employees will be tested for oral skill in the designated language by a vendor selected by the Human Resources Director/Manager and must successfully pass the examination to be eligible for bilingual premium. Periodic evaluation of incumbents receiving bilingual skill premium may be required. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Bilingual Premium.

13. Reopeners
The parties agree to the following reopener clauses:

A. Article 15 – Insurance Coverage
a. The parties agree to reopen negotiations concerning an increase to the City’s medical insurance contribution should the medical insurance premium for the lowest cost family HMO plan exceed the City contribution.

B. Article 36 – Discipline
a. The City has notified the Association of its desire to rescind Chapter 5, Police Officer Rules and Regulations (Blue Section) of the HBPD Policy and Procedure Manual to align with updated policies and procedures.

The parties agree that during the term of this MOU, if requested by the City, Article 36 and Exhibit A of this MOU shall be reopened for the purpose of meeting and conferring regarding a Proposed Progressive Discipline Policy and related rescission of Chapter 5, Police Officer Rules and Regulations (Blue Section) and modification to Article 36.

Fiscal Impact:

The total cost of the negotiated changes is estimated to be $2,163,000 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.

Attachments:

1. Draft Resolution

2. MOU Between the City of Hermosa Beach and Hermosa Beach Police Officers’ Association
Respectfully Submitted by: Tiffany Nguyen, Human Resources Manager

City of Hermosa Beach | Page 6 of 6
Concur: Brandon Walker, Administrative Services Director 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 HERMOSA BEACH POLICE OFFICERS’

ASSOCIATION
WHEREAS, employees of the City of Hermosa Beach, California represented by the Hermosa Beach Police Officers’ Association, 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 Officers’ Association 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 Officers’ Association; and,
WHEREAS, the Hermosa Beach Police Officers’ 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 resolves to enter into a Memorandum of Understanding with the Hermosa Beach Police Officers’ Association, 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 OFFICERS’ ASSOCIATION
JULY 1, 2025- JUNE 30, 2028

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TABLE OF CONTENTS
ARTICLE 1 — PARTIES TO THE MEMORANDUM.......................................................... 1 ARTICLE 2 — RECOGNITION.......................................................................................... 1 ARTICLE 3 — SCOPE & IMPLEMENTATION OF THE MEMORANDUM OF UNDERSTANDING ................................................................................................. 1 ARTICLE 4 — MONTHLY MEETINGS.............................................................................. 1 ARTICLE 5 — JOB ACTION ............................................................................................. 2 ARTICLE 6 — NON-DISCRIMINATION ............................................................................ 2 ARTICLE 7 — MANAGEMENT RIGHTS........................................................................... 2 ARTICLE 8 — PROVISIONS OF LAW — INSEPARABILITY........................................... 4 ARTICLE 9 — FULL UNDERSTANDING, MODIFICATION, WAIVER ............................. 4 ARTICLE 10 — GRIEVANCE PROCEDURE .................................................................... 4 ARTICLE 11 — WORK SCHEDULE ................................................................................. 4 ARTICLE 12 — COMPENSATION - METHODS OF COMPENSATION........................... 5 ARTICLE 13 — BASE SALARY........................................................................................ 6 ARTICLE 14 — OVERTIME PRACTICES......................................................................... 6 ARTICLE 15 — INSURANCE COVERAGE....................................................................... 9 ARTICLE 16 — DEFERRED COMPENSATION ............................................................. 11 ARTICLE 17 — RETIREMENT........................................................................................ 11 ARTICLE 18 — LEAVE OF ABSENCE........................................................................... 14 ARTICLE 19 — VACATION............................................................................................. 14 ARTICLE 20 — HOLIDAYS............................................................................................. 15 ARTICLE 21 — SICK LEAVE........................................................................................ 155 ARTICLE 22 — BEREAVEMENT LEAVE..................................................................... 166 ARTICLE 23 — JURY DUTY........................................................................................... 16 ARTICLE 24 — LONGEVITY PAY .................................................................................. 17 ARTICLE 25 – EDUCATION ALLOWANCE ................................................................... 17 ARTICLE 26 — PEACE OFFICER STANDARD AND TRAINING (POST) CERTIFICATE PAY & MAINTENANCE OF BENEFITS....................................... 17 ARTICLE 27 — UNIFORM ALLOWANCE ...................................................................... 17 ARTICLE 28 — AMMUNITION REPLACEMENT............................................................ 18 ARTICLE 29 — SPECIALTY ASSIGNMENT PREMIUMS, ACTING PAY ...................... 18 ARTICLE 30 — PHYSICAL FITNESS TIME.................................................................... 20 ARTICLE 31 – YEARLY SHIFT CHANGES .................................................................... 20

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ARTICLE 32 — OVERTIME ASSIGNMENTS ................................................................. 22 ARTICLE 33 — SHIFT COVERAGE ............................................................................... 22 ARTICLE 34 — WATCH COMMANDER SELECTION ................................................... 23 ARTICLE 35 – PERFORMANCE REVIEW...................................................................... 23 ARTICLE 36 — DISCIPLINARY ACTIONS..................................................................... 23 ARTICLE 37 — LAYOFF................................................................................................. 24 ARTICLE 38 — ASSOCIATION DIRECTORS TIME....................................................... 24 ARTICLE 39 — CITY/POA DISCUSSION OPPORTUNITY ............................................ 24 ARTICLE 40 — REOPENER CLAUSE FOR ARTICLE 36 AND EXHIBIT A TO THE MOU .............................................................................................................. 24 ARTICLE 41 — BILINGUAL PAY ................................................................................... 25 ARTICLE 42 — DURATION OF CONTRACT ................................................................. 25

1 MEMORANDUM OF UNDERSTANDING

FOR THE
HERMOSA BEACH POLICE OFFICERS’ ASSOCIATION
ARTICLE 1 — 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 OFFICERS ASSOCIATION, hereinafter referred to as the "Association." ARTICLE 2 — 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 Officers Association as the exclusive representative of the full-time positions in the classifications of POLICE OFFICER AND POLICE SERGEANT of the City of Hermosa Beach.

ARTICLE 3 — SCOPE & IMPLEMENTATION OF THE MEMORANDUM OF

UNDERSTANDING
A. This Memorandum of Understanding (MOU) constitutes the joint recommendation of Management and the Association. It shall not be binding in whole or in part upon the parties unless and until the following conditions have been complied with:

1. The Association 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 Officers Association.

ARTICLE 4 — MONTHLY MEETINGS
A. In the interest of fostering and continuing a spirit and atmosphere of harmonious employer-employee relationships, it is agreed that the Association Board of Directors shall meet once a month, or as designated by both parties, at a designated time and place with the Chief of Police or designee of the Department. There shall be no less than two (2) Board members present for each such meeting.

B. It is further agreed that the Association and the City Manager shall meet when requested by the Association to best effect implementation of this document.

2 ARTICLE 5 — JOB ACTION
A. The Association and its members agree that during the term of this MOU there shall be no strike.

B. In the event of an unauthorized strike, the City agrees that there will be no liability on the part of the Association provided the Association 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 Association notifies the City in writing, within 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 Association has not affected resumption of normal work practices, the City shall have the right to take appropriate disciplinary action.

ARTICLE 6 — 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 the supervisor, Department Director, Human Resources /Manager or the City Manager in a timely manner.

ARTICLE 7 — MANAGEMENT RIGHTS

1. Manage the City.

2. Schedule working hours.

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

4. Institute changes in policy and procedures.

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

3 6. Determine the location of any new facilities, buildings, 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 size and characteristics of the work force.

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

15. Determine selection, promotion, or transfer of 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 policies and procedures.

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 attend in-service training.

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.

4 The exercise of the foregoing powers, rights authority, duties and responsibilities by the City, the adoption of policies and procedures 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 law.

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 Association, upon request by the Association, 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.

ARTICLE 8 — PROVISIONS OF LAW — INSEPARABILITY
It is mutually understood that this MOU is, and shall be, subject to all current and future applicable state, federal and local laws. If any article, part, provision or segment of this MOU is, or shall be, in conflict with or inconsistent with such applicable provisions of federal, state or local law, or is otherwise held to be invalid, or unenforceable by any court of competent jurisdiction by final decree, such article, part or provision thereof shall be superseded by such applicable law and the remainder of this MOU shall in no way be affected thereby.

ARTICLE 9 — 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 10 — GRIEVANCE PROCEDURE
The Grievance Procedure is attached as Exhibit A and incorporated herein by reference.

ARTICLE 11 — WORK SCHEDULE

5 A. The City agrees to the utilization of the 3/36 plan for all Officers and Sergeants assigned to patrol, traffic and K-9. There will be no payback days during the months of approximately December through May. There will be payback days during the months of approximately June through November. Effective beginning January 1, 2026, Sergeants and Officers shall work eight (8) payback days, at the rate of two payback days per quarterly deployment, to be assigned by the Division Commander.

B. . The Sergeants and Officers assigned to investigations and administrative positions will work a 4/36 schedule (four nine-hour days/week) during the months of December through May and a 4/40 schedule (four ten-hour days/week) during the months of June through November. Effective beginning January 1, 2026, these employees shall work a year-round schedule of 4/9.5, consisting of four consecutive work days of 9.5 consecutive hours each, inclusive of paid meal periods and breaks.

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

It is mutually agreed that for the reduction in hours expressed in "A" and "B" above, the City, for market salary comparison purposes only, shall increase base salary 5% as a credit.

ARTICLE 12 — COMPENSATION - METHODS OF COMPENSATION
A. Methods of Compensation:

1. Compensation shall be determined on an hourly basis.

2. Payments due shall be paid on a bimonthly basis unless otherwise mutually agreed. By mutual consent early payments and other modifications can be made. Upon agreement of other bargaining units in the City, payments due shall be paid on a biweekly basis, with 26 biweekly pay periods each year.

3. Base hourly 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 step advances shall be based on merit and fitness. Eligibility for a step advancement requires that the employee have earned an overall rating of “4” Meets Expectations or higher on the employee’s annual Performance Evaluation. All increases shall be recommended by the Department Head and approved by the Personnel Director/City Manager. Merit increases shall be effective at the beginning of the next pay period (1st or 16th of the month).
b. Subject to paragraph a. above, upon the successful and satisfactory completion of twelve (12) months service (exclusive of police recruit status), employees are eligible to be advanced one step within their

6 range and yearly thereafter until the maximum within the range achieved.

2. 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 with the intent of increasing the base salary rate by at least 5%.

ARTICLE 13 — BASE SALARY
A. Effective July 1, 2025 in response to the results of a Salary Survey, , the City shall provide a market equity adjustment of 8% for Police Officers and Police Sergeants, and a base salary table increase of 3.0%, for a total increase of 11%. The retroactive adjustment will be made for employees who are currently employed with the City as of the date the City Council approves the Agreement. See Exhibit C for salary table effective July 1, 2025.

B. Effective July, 1, 2026, the base salary schedule will be increased by 3,0% for Police Officers and Police Sergeants. See Exhibit C for salary table effective July 1, 2026.

C. Effective July, 1, 2027, the base salary schedule will be increased by 3.0% for Police Officers and Police Sergeants. See Exhibit C for salary table effective July 1, 2027.

ARTICLE 14 — OVERTIME PRACTICES
A. 7K Exemption
The City of Hermosa Beach has exercised its ability to take a statutory 7K exemption for sworn police personnel. The work period for such employees shall be 28 days in length commencing on Sunday, May 22, 1988, at 12:01 A.M.

B. F.L.S.A. Overtime
All employees required to perform in excess of the standard work shift, or at times other than their regularly scheduled work shift, shall receive compensation at the rate of time and one-half their regular rate of pay. The regular rate of pay shall include the following components in addition to base salary.

1. Educational incentive

2. Assignment Pay

3. Longevity Pay
C. Paid Leave Exclusions

7 In determining an employee's eligibility for overtime compensation in a workday, paid leaves of absence and unpaid leaves of absence shall be excluded from the total hours worked. For this purpose, paid leaves of absences include, but are not limited to the following:

1. Vacation

2. Holiday Leave

3. Sick Leave

4. Compensatory Leave

5. 4850 Time

6. Jury Duty

7. Military Leave
D. Compensatory Time

1. In lieu of receiving cash payment for overtime hours, an employee may elect the option of accruing compensatory time off (CTO).

2. Employees will accrue 1.5 hours of CTO for each overtime hour worked.

3. Employees may accrue compensatory time and may cash out all or part of such accrued time at any time, subject to the budgetary constraints of the department, provided, however, any compensatory time balance in excess of 175 hours as of December 31st, shall automatically be cashed out at the employee’s regular rate of pay in the second payroll period in February.

E. Overtime Authorization
All overtime requests must have prior written authorization of a supervisor prior to the commencement of such overtime work. Where prior written authorization is not feasible, explicit verbal authorization must be obtained. Where verbal authorization is obtained, written authorization must be obtained as soon thereafter as practicable.

Dispatched calls beyond the end of duty time are considered as authorized. An employee's failure to obtain prior written approval, or explicit verbal authorization followed by written authorization, will result in the denial of the overtime request.

F. Shift Trades

1. The practice of shift trading shall be voluntary on behalf of each employee involved in the trade. The trade must be due to the employee's desire or need to attend to a personal matter and not due to the department's operations. The employee providing the trade shall not have his/her compensable hours increase as a result of the trade; nor shall the employee receiving the trade have their compensable hours decreased as a result of the trade. Any premium pay or other extra compensation shall continue to accrue only to the person originally entitled to the premium pay or extra compensation. Any hours worked beyond the normal workday will be credited to the individual actually doing work. "Paybacks" of shift trade are the obligation of the two employees

8 involved in the trade. Paybacks are to be completed within one calendar year of the date of the initial shift trade. Any dispute as to the paybacks is to be resolved by the involved employees, and under no circumstances will the department be obligated for any further compensation whatsoever to any of the involved employees. The department is not responsible in any manner for hours owed to employees by other employees that leave the employment of the City or are assigned other duties. A record of all initial shift trades and "paybacks" shall be maintained using the designated scheduling software.

2. If one individual fails to appear for the other (regardless of the reason), the person who was scheduled as a result of the shift trade will be listed as absent without leave and may be subject to disciplinary action.

G. Early Relief Policy
The practice of early shift release shall be voluntary on behalf of each employee involved in the relief. The employee providing the early relief shall not have his/her compensable hours increase as a result of the early relief, nor shall the employee relieved early have their compensable hours decreased as a result of the early relief. "Paybacks" of early relief hours are the sole obligation of the two employees involved in the early relief. Any dispute is to be resolved by the involved employees, and under no circumstances will the department be obligated for any further compensation whatsoever to any of the involved employees. The department is not responsible in any manner for hours owed to employees by other employees that leave the employment of the City or are assigned other duties.

H. Training Time
Attendance at training school/facilities, which improves the performance of regular tasks and/ or prepares for job advancement are not compensable for hours in excess of the employee's normal work shift. Any time spent in excess of the normal work shift will not be counted as working time and is not compensable in any manner whatsoever. Time spent in studying and other personal pursuits is not compensable hours of work.

I. City Vehicle Use
Except as otherwise herein provided, employees who are provided with a City vehicle to travel to and from work shall not be compensated in any manner whatsoever for travel time to and from work. This provision also applies in those situations where the radio must be left on and monitored.

J. City Motorcycle Use
Employees assigned to motor duty may, with the approval of the Police Chief, use the city assigned motorcycle to travel to and from work. Such travel time will not be compensated in any manner whatsoever (even when the employee is required to leave the radio on and monitor the radio.) Any maintenance the employee performs on the motorcycle while away from the police facility will not be considered hours worked and will not be compensated in any manner whatsoever.

9 K. Clothes Changing
Employees are not authorized to wear their uniforms or any part thereof that is distinguishable as such unless on duty. Employees are provided with a locker for their personal convenience. Any employee may or may not utilize the locker for storage and changing purposes at their own discretion. Nothing herein prevents an employee from wearing their uniform to and/or from their residence to work as long as the badge and insignia are covered in a non-police issued garment such as a windbreaker. Employees choosing to wear their uniforms covered to and/or from work should not wear their "Sam Browne" belt. Time spent in changing clothes before or after shift, is not considered hours worked and is not compensable in any manner whatsoever.

L. Call Backs
Call Back duty occurs when an employee is ordered to return to duty on a nonregularly scheduled work shift. Call back does not occur when an employee is held over from their prior shift or is working prior to their regularly scheduled shift. An employee called back to duty shall be credited with a minimum of four hours work commencing when the employee reports to work. Any hours worked in excess of four hours shall be credited on an hour-for-hour basis for actual time worked. This provision is to be distinguished from Court pay, which is to be used when an employee is called back to court.

M. Court Time

1. When an officer is physically called to court, they shall be credited on an hour-for-hour basis for the time actually spent in court, with a minimum four (4) hours. All court time shall be paid at time and one-half the employee’s regular rate of pay. Travel time shall be included for any subpoenaed appearance other than to the Torrance Courthouse.

2. An officer who is subpoenaed to testify telephonically shall receive a minimum two (2) hours paid at time and a half for a morning appearance and a minimum of (2) hours paid at time and half for an afternoon appearance.

N. Standby Court Time
An employee who while off duty is on court standby status may leave a telephone number where they may be reached while on court standby. Such time is not considered hours worked under the Fair Labor Standards Act. The employee will receive straight time pay, up to a maximum of 8.5 hours per day, for standby during the pendency of the case.

ARTICLE 15 — INSURANCE COVERAGE

10 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).

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

B. Life Insurance
City shall provide a life insurance policy for each employee, payable in the amount of $150,000 upon such employee's death.

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

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

E. Medical Health Insurance
The City will provide employees 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 $1,931.04 (family rate in effect for the 2015 policy year). 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.

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.

11 The HMO plan shall have no greater than a $20.00 office visit and prescription copay during the term of this Agreement.

The parties agree to reopen negotiations concerning an increase to the City’s medical insurance contribution should the medical insurance premium for the lowest cost family HMO plan exceed the City contribution.

F. Dental Insurance

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

2. For the benefit years beginning January 1, 2018 and later, the City’s maximum monthly premium contribution toward dental insurance for each employee’s selected plan and level of coverage will be $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.

G. Long Term Disability
Employees are provided with long term disability insurance coverage through the association.

ARTICLE 16 — DEFERRED COMPENSATION
A. City agrees to make available to all employees in the Unit the citywide Deferred Compensation Plan. All participants being then eligible to vote on decisions of the Deferred Compensation Committee. Members of the Association may participate in any of the Deferred Compensation plans provided for City employees.

B. Effective beginning July 1, 2025, City shall make a monthly contribution on behalf of each unit employee in the amount of $50 to the employees’ deferred compensation account.

ARTICLE 17 — RETIREMENT
A. This paragraph A is subject to the provisions in paragraph B, below.

Tier I. The City provides the PERS 3% at 50 Plan with one year final compensation to employees hired prior to July 1, 2011.

Tier Il. For employees hired on or after July 1, 2011, the PERS retirement benefit formula shall be PERS 2% © 50. July 1, 2011 was the effective adoption date of the new contract with PERS. 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.

Effective the first payroll period commencing on or after City Council adoption of the 2012-2015 MOU, unit members employed prior to January 1, 2013, shall

12 personally fund 3% of compensation earnable as and for the individual member’s normal employee PERS contribution.

Effective the first payroll period commencing on or after July 1, 2013, all of the above unit members shall personally fund 6% of compensation earnable as and for the individual member’s normal employee PERS contribution.

Effective the first payroll period commencing on or after July 1, 2014, all of the above unit members shall personally fund 9% of compensation earnable as and for the individual member’s normal employee PERS contribution.

The City shall adopt the necessary resolution so that such payments made by employees may be excluded from taxable income pursuant to section 414(h) (2) of the U.S. Internal Revenue Code.

Whether as authorized by Government Code § 20692, 20636(c)(4) or any other statutory or other legal basis, the City shall not report to PERS as any type of compensation, any portion of the normal employee PERS contributions required by PERS.

B. AB 340 (signed by the Governor on 09/07/12 and effective January 1, 2013,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of the 2012-15 MOU, as described below. Any provision in the 2012-15 MOU which contradicts any provision of AB 340 shall be deemed null and void, with the contrary AB 340 provision(s) being given full force and effect. Therefore, no provision of AB 340 shall be deemed to impair any provision of the 2012-15 MOU or any MOU, Agreement, Rule or Regulation predating the 2012-15 MOU.

Unit members who are “new members” as defined in the above 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 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).) C. Retiree Medical
Tier I. Retiree medical insurance stipends provided to employees who retired prior to July 1, 2003 shall remain at existing amounts.

Tier II. Employees covered by this agreement who retire from the City of Hermosa Beach after July 1, 2003 and were hired before July 1, 2017, will be eligible for the following medical insurance benefits:

13 1. The City will pay an amount up to the lowest cost 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.

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

3. Said benefit provided under Sections 1 and 2 above, shall commence with the first month following the employee's approved retirement date by Cal PERS.

4. 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.

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

6. 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.

7. 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.

8. 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 of Tier Two benefits above.

Tier III. Employees covered by this agreement who are hired on or after July 1, 2017 and who retire from the City of Hermosa Beach 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 $400 per month medical insurance supplement.

2. The benefit provided Tier Three, 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

14 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.

An employee shall be given credit for years of sworn law enforcement service with another agency towards reaching the minimum year requirements of Tier II or Tier III retiree medical insurance, above, with a maximum of 10 years, subject to verification and certification by Human Resources.

ARTICLE 18 — LEAVE OF ABSENCE
Management agrees to allow all employees covered by this MOU to take a leave of absence without pay, not to exceed 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 subject to approval of and subject to the needs of the department. Any request for such leave must be delivered to the Chief a minimum of 30 days in advance. This provision shall not reduce any leave entitlement an employee may have under the Military and Veterans Code.

ARTICLE 19 — VACATION
A. Effective July 1, 2022, vacation accrual rates for all employees covered by this agreement shall be as follows:

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

2. Commencing with the 5th year, at the rate of 120 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 in excess of 270 hours, provided, however, all hours in excess of 270 hours as of December 31 each year shall be automatically cashed out as part of the February 20th payroll.

C. An employee shall be given credit for years of sworn law enforcement with another agency for vacation accrual purposes, above, with a maximum of 10 years, subject to verification and certification by Human Resources.

15 ARTICLE 20 — HOLIDAYS
A. Effective July 1, 2025 all employees shall receive 12 hours per month of "Holiday Comp". This is a result of two additional observed holidays, Cesar Chavez Day and Juneteenth.

B. All personnel are scheduled without regard to holidays and receive holiday compensatory time in lieu of paid holidays off.

C. An employee covered by this Agreement may accrue Holiday Comp time to a maximum of 144 hours. Cash out of any earned but unused Holiday Comp accrual in excess of 144 hours (as of December 31st of each year) shall be automatically cashed out as part of the February 20th payroll.

D. All personnel have the option of receiving pay by cashing out holiday comp time each pay period in which it is accrued. Subject to regulations established by CalPERS, this compensation shall be reported to CalPERS. Current CalPERS regulations specifically state that should an employee utilize this cash out provision ONLY during their final compensation period, said additional compensation shall be excluded from reportable compensation.

ARTICLE 21 — SICK LEAVE
A. Employees shall accrue 10 hours of sick leave per month until the commencement of their 15th year, at which time they will accrue 12 hours per month.

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

C. Sick leave may be used for the following purposes:

1. Diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee or any of the following of the employee’s family members: child of any age or dependency status; parent; parent-in-law; spouse; registered domestic partner; grandparent; grandchildren; or sibling.

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); or

2. For an employee who is a victim of domestic violence, sexual assault, or stalking to: a) obtain or attempt to obtain a temporary restraining order or other court assistance to help ensure the health safety or welfare of the employee or their child; or b) obtain medical attention or psychological counseling; services from a shelter; program or crisis center; or participate in safety planning or other actions to increase safety.

16 D. Upon resignation or retirement from City employment, sick leave accrued prior to July 1, 2017, at the employee’s election, will be paid at the current hourly pay rate, on the following conditions:

1. 25% pay 5 through 9 years of total full time City service.

2. 50% pay 10 through 19 years of total full time City service.

3. 100% pay 20 + years of total full time City service.

Except as otherwise provided in B above, sick leave accrued on or after July 1, 2017, shall not be paid out at resignation or retirement.

An employee shall be given credit for prior sworn law enforcement with another agency towards sick leave accrual and cash-out upon resignation or retirement, above, with a maximum of 10 years, subject to verification and certification by Human Resources.

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

ARTICLE 22 — BEREAVEMENT LEAVE
Each employee may receive up to three shifts paid bereavement leave to attend a funeral or memorial service or to take care of family matters that are related to the death of a member of immediate family. An employee may take two additional unpaid shifts, or utilize available paid leave accruals. Employees have up to one year to use their bereavement leave. For purposes of this provision, “Immediate family” consists of the following:
employee’s spouse, domestic partner, child, stepchild, parent, grandparent, grandchild, brother, sister, mother/father-in-law, son or daughter-in-law, brother or sister-in-law, legal guardian, or custodial child, or the same relatives of a domestic partner. Employees are entitled to up to five days for each death in the immediate family. An employee who utilizes bereavement leave shall notify their supervisor or department head of the intent to use such leave. Reasonable proof of death and/or relationship to employee may be required.

The Chief may grant one (1) additional paid shift in the event of a death which requires extended travel.

ARTICLE 23 — JURY DUTY
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.

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

17 employee may be excused from the reporting requirement if the time they would be at work is de minimis.

ARTICLE 24 — LONGEVITY PAY
Employees shall receive additional compensation of 5% above base salary for each level of full-time sworn police service with the City of Hermosa Beach according to the following schedule. The effective date of this premium is the first day of the pay period following anniversary date. An employee shall be given credit for prior sworn law enforcement with another agency towards reaching the minimum year requirements for longevity pay, below, with a maximum of 10 years, subject to verification and certification by Human Resources.

Upon commencement of the fifth (5th) year (Not reportable to PERS, as PERS requires “exceeding of 5 years”)
Upon commencement of the tenth (10th) year
Upon commencement of the fifteenth (15th) year
Upon commencement of the twentieth (20th) year
ARTICLE 25 – EDUCATION ALLOWANCE
Employees shall receive tuition reimbursement for course, fees, books and tuition (up to CSU rates, including summer sessions). Subject to the City Manager/Chief of Police’s approval; employee will reimburse the City for all expenses if employee fails or does not complete the stated courses or if the employee leaves the City during the semester the employee is enrolled and received payment. For employees who seek reimbursement for expenses incurred from a non-CSU educational institution, the tuition reimbursement rate shall be the average of Cal State Los Angeles, Cal State Dominguez Hills, and Cal State Long Beach.

ARTICLE 26 — PEACE OFFICER STANDARD AND TRAINING (POST)

CERTIFICATE PAY & MAINTENANCE OF BENEFITS
A. Peace Officer Standards and Training (POST) Certificate Pay. In recognition of formal professional training, obtained from either an accredited educational institution or through P.O.S.T. sanctioned training, or a combination of both, City agrees to a concept of pay as an adjunct to base monthly salary for achieving and maintaining various levels of professional proficiency certification as follows:

Employees who obtain an A.A. or A.S. degree or an Intermediate P.O.S.T. Certificate shall receive additional compensation of 5% above base salary.

Employees who obtain a B.A. or B.S. degree or Advanced P.O.S.T. Certificate shall receive additional compensation of 10% above base salary.

ARTICLE 27 — UNIFORM ALLOWANCE

18 A. Effective July 1, 2022, uniform allowance for Officers and Sergeants shall be $1,000.08 per year, payable through the regular payroll schedule. 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 for all “Classic” members.

B. An absence due to sick leave, or leave of absence without pay, exceeding sixty days (60), days shall result in a pro-rata reduction in uniform allowance for the time of the absence.

ARTICLE 28 — 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. If necessary, 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.

ARTICLE 29 — SPECIALTY ASSIGNMENT PREMIUMS, ACTING PAY
A. Detective Division Premium. The City shall pay 9% of base salary per month to each officer assigned to a Detective Special Assignment, including a task force, background/training detective, administrative position or specialty assignment.

That compensation shall be for the additional time detectives are "on-call." This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Detective Division Premium.

B. Crime Impact Team Premium. The City shall pay 7% of base salary per month to each employee assigned to the Crime Impact Team. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Detective Division Premium.

C. Field Training Officer Training Premium. The City shall pay 7% of base salary per month to each officer assigned to serve as a Field Training Officer. Assignments to Field Training Officer will be made through an open and fair selection process from a new eligibility list. There can be no more than six (6) Field Training Officer assignments at any given time. The number of Field Training Officer at any given time will be determined at the sole discretion of the Chief of Police. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Training Premium.

D. Traffic Officer Premium. The City shall pay 7% of base salary per month to each officer assigned to Traffic Officer. This sum shall be payable when on duty, during hazardous duty disability leaves, and during absences from work of less than one

19 month. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4), and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – DUI Traffic Officer Premium.

E. Task Force Premium. When staffing permits, the Department will assign officer(s) to full time task force positions. Assignments to a regional, federal, or multi-agency task force will be considered separate from any current or previous special assignment. Officers may rotate from a special assignment to a task force depending on the needs of the task force.

Time spent in a current or previous special assignment will not be considered part of the four (4) year temporary duration assignment to a task force. The Department will work with each task force to determine the minimum qualifications and selection process. The City shall pay 9% of base salary per month to each officer assigned to a Task Force Special Assignment. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Detective Division Premium.

F. The Special Assignments in this Article are of temporary duration. All Special Assignments shall be filled through an agreed upon selection process.

Assignments to the Crime Impact Team will be for a period of 1 (or 2) year(s).

Assignment to a Detective, Administrative, Backgrounds and Training, or Traffic Officer positions shall be for a period of four (4) years. Assignment to the Field Training Officer position will be for a period of 3 years. Employees must maintain an active POST Field Training Officer certification. If approved by the Chief of Police, Officers assigned to the Field Training Officer position may be assigned to consecutive, three-year FTO assignments provided they maintain their POST certification. The Chief of Police may extend any Special Assignment for up to one year if it benefits the continued operations of the Department. Extensions of a Specialty Assignment should not be considered automatic and they will only be granted if a rotation will create a hardship on the Department. The right to assign and reassign shall be vested solely with the Chief of Police.

G. Canine Officer/Animal Premium. The City shall pay 7% of base salary per month to each officer assigned to the Police Service Dog Program as a Police Service Dog handler. This amount shall be considered as full compensation for the additional incidental hours required for the animals veterinary care; routine care for the K-9's physical health, welfare and grooming; daily and routine maintenance to the K-9 patrol vehicle and field equipment. The assignment is only in effect through the service life of the K-9 partner. Once the K-9 is retired, a selection process will take place for a new K-9 assignment through an agreed upon selection process. New selections will be based on the needs of the Department. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Canine Officer/Animal Premium.

H. Employees assigned full time to the Department's Police Service Dog Program are subject to schedule changes contingent on meeting Police Dog Program priorities and Department needs.

20 I. The parties understand and agree that all assignments to extra-pay positions are temporary assignments, and that officers will be rotated into and out of these assignments as part of the department's job enrichment and career development program.

J. In conformity with this understanding, each officer who accepts an assignment shall sign a statement indicating that they understand the temporary nature of the assignment. Nothing herein shall abrogate an employee's appeal rights as set forth in Government Code Section 3304.

K. Time spent "on-call" shall not be considered hours worked for FLSA purposes and is not compensated in any manner.

L. An employee is eligible to receive only one specialty assignment pay at a time.

M. Any employee receiving a specialty pay premium will be expected to participate in auxiliary assignments (within each specialty unit), without additional pay, at the discretion of the Chief of Police.

N. Acting Pay.

1. 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 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 5% increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement.

2. 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 per fiscal year.

ARTICLE 30 — PHYSICAL FITNESS TIME
The City and the Association agree to a program providing Compensatory Time Off (CTO) for workout time for Officers and Sergeants under the following conditions and as approved by the Chief of Police:

A. The workout shall be of thirty (30) minutes duration, beginning when the employee enters the workout facility. The workout shall take place within the City or within 1/4 mile of the City boundary. Employees shall receive thirty (30) minutes of Comp Time Off (CTO) for working out a minimum of 30 minutes, with a maximum credit of 60 hours per year.

B. The work out shall be conducted prior to, or after, an assigned work shift.

C. Employees will notify the watch commander (or designee) when they have worked out prior to, or after, an assigned work shift. Employees will certify the total workout

21 time by completing a request for CTO and submitting documentation of their workout within the pay period during which CTO credit is requested.

D. Individuals may be barred from this program at City discretion if there is evidence of abuse.

ARTICLE 31 – YEARLY SHIFT CHANGES
A. 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. The quarters shall run as follows:

1. June, July, August

2. September, October, November

3. December, January, February

4. March, April, May
Although there will be four (4) shift changes in a twelve month period, employees shall bid on a semi-annual basis for two consecutive shifts at a time.

Effective January 1, 2026, the quarterly shift deployments shall begin on the first Sunday of the first month of each quarter, as follows:

1. January - March

2. April – June

3. July – September

4. October - December
B. For shift bidding purposes, the schedule should be posted on November 1, for the quarters January-March and April-June and on May 1 for the quarters JulySeptember and October-December. The sign-up schedule will remain posted for thirty (30) days from the date of posting for employee shift bidding. Management will then have thirty (30) days to finalize the schedule in advance of the schedule change.

C. Employees are not mandated to rotate between day and night shifts. Bidding for shifts and days off shall be made on a seniority basis. Management will continue to assign new hire employees to shifts only, without regard to days off, through completion of their probation.

D. With regard to new hire employees, following the successful completion of their probationary period, the employee will be allowed to bid for days off on a seniority basis.

E. In order to provide scheduling protections to less senior employees, those without sufficient longevity to bid for an alternate shift assignment may request, via the

22 Patrol Division Commander, a shift rotation for one (1) deployment quarter in a twelve (12) month period. It shall be the sole responsibility of the junior employee wishing such a shift rotation to notify the Patrol Division Commander immediately upon posting of each shift bidding schedule.

F. In the event that a less junior employee qualifies for a shift rotation and desires to exercise their prerogative to rotate to another shift, the employee with the least seniority in the bidding process who has bid on a shift will be "bumped" to an alternate shift in order to provide a shift opening for the junior employee. The senior employee shall retain the right to select the deployment quarter in which they will be displaced in the rotation. All other seniority rights shall remain in full force and effect.

ARTICLE 32 — OVERTIME ASSIGNMENTS
A. Officers and Sergeants holding regular positions in the Hermosa Beach Police Department shall receive priority over Reserve Officers in overtime assignments.

There shall be no restrictions on the number of regular officers who can sign up for overtime assignments. Officers and Sergeants will be compensated for all hours worked on an overtime basis, for overtime assignments, at time and one-half their regular rate.

B. Overtime assignments are to be made by a Watch Commander or above and approved by a Captain.

C. To be eligible for an overtime assignment, an officer must be off training. Available overtime assignments shall be posted, on the currently designated schedule software system, as soon as reasonably possible. If approved by the Captain, Officers and Sergeants may flex their standard schedule to work an overtime time assignment after the half-way point of the desired shift if there is an unassigned opening, but in no event can they “bump” a junior employee.

D. Recurring overtime shifts should be posted five (5) days prior to the first day of the month in which the overtime shifts will occur. Failure to work an overtime assignment after being awarded the shift shall be deemed a violation of policy. If an officer or sergeant can no longer work a shift, he or she shall notify the on-duty Watch Commander as soon as possible to offer the next person listed on the signup list an opportunity to work the assignment, or repost the overtime shift in the event that no one else has signed up for the shift.

E. Nothing herein shall prohibit the City of Hermosa Beach from hiring temporary civilian employees to perform police related duties in the enforcement of Municipal Code provisions.

ARTICLE 33 — SHIFT COVERAGE
The minimum staffing for each patrol shift is three officers (consisting of a Watch Commander and two area cars). If for any reason the Police Department cannot meet a minimum three-person staffing standard requirement, the Department shall have the right

23 to fill positions with Certified Level I Reserve Officers. This may be done only when all regular officers have been contacted to determine their availability to cover the shift or a portion of the shift, which will be understaffed.

The Chief of Police, or any Division Commander, will have the discretion to temporarily increase the minimum staffing requirements as needed for public safety. Minimum staffing requirements may be increased for events which include, but are not limited to, holidays, special events, anticipated increases in large crowds or calls for service.

ARTICLE 34 — WATCH COMMANDER SELECTION
The Chief of Police shall have the right to establish criteria for selection of officers to be placed on the Watch Commander's list. Assignments will be made through an open and fair selection process from a new eligibility list to be established at the discretion of the Chief. The Chief shall select any number to be placed on the list and may remove officers or add officers to the list at any time.

The City shall pay officers performing as Watch Commander the sum of five dollars ($5.00) per hour as special duty pay. This pay shall be included in total compensation calculations for retirement purposes.

ARTICLE 35 – PERFORMANCE REVIEW
Upon completion of probation, each employee shall be reviewed annually; said review to be objective, constructive in nature designed to point out area of strengths, weakness and methods for improvement. The review will be completed by the employee's immediate supervisor and will include all co-lateral assignments (i.e. FTO, Range Master, PIO, etc.).

Any modification to the evaluation form will be submitted to the Police Officers Association for review and comments.

ARTICLE 36 — DISCIPLINARY ACTIONS
A. For the purpose of defining disciplinary actions, the following definitions shall be applicable:

1. Disciplinary actions are defined as:
a. Dismissal
b. Demotion
c. Suspension
d. Reductions in pay
e. Reprimand (written)

2. Reductions in pay are governed by the "Blue Section" of the Police Manual.

3. Appeals from the disciplinary actions shall only be subject to the "Blue" section of the Police Manual entitled "Rules and Regulations."

4. Prior to the commencement of any internal investigation that 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

24 as amended. All rights contained therein shall be applicable to the disciplinary actions and shall be used as a minimum guideline only.

5. 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 procedure set forth in the Police Policy and Procedures Manual.

6. Inclusionary periods as currently set forth in the Police Department Rules and Regulations shall remain in effect during this MOU.

7. Any officer receiving time off dispensed as a result of disciplinary action can use either accumulated compensatory time or vacation time at their discretion.

However, when exceptional circumstances arise and the City feels that it is in the best interest to keep an officer off duty for a limited period of time (not to exceed five (5) working days), the City may exercise this right.

8. For purposes of this section, a "suspension day" imposed as a result of disciplinary action or "workday" referred to in Section 7 is equivalent to eight (8) hours.

ARTICLE 37 — LAYOFF
A. Hermosa Beach Personnel Rules and Regulations, Rule XXXII, as currently enacted, is 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.

B. It is further agreed that in the event the City should contract with another agency for provision of police services, the Association shall receive six (6) months advance written notice prior to the effective date of any such change.

ARTICLE 38 — ASSOCIATION DIRECTORS TIME
A maximum of two Board members shall be allowed to attend out of town meetings on City time up to and including a cumulative total of five (5) working days per calendar year provided such out of town meetings are for purposes of Association business and does not conflict with the operational needs of the department. With the permission of the Police Chief additional days may be granted.

ARTICLE 39 — CITY/POA DISCUSSION OPPORTUNITY
During the term of this MOU, the parties agree to informally discuss matters of mutual concern, including scheduling and other ways to maximize the allocation of resources.

Said discussions shall only result in changes in terms and conditions of employment upon mutual agreement of the parties.

ARTICLE 40 — REOPENER CLAUSE FOR ARTICLE 36 AND EXHIBIT A TO

THE MOU

25 The parties agree that during the term of this MOU, if requested by the City, Article 36 and Exhibit A of this MOU shall be reopened solely for the purpose of meeting and conferring regarding disciplinary actions, including the discipline appeal process, a “bail schedule” for discipline, and a progressive discipline policy
ARTICLE 41 — BILINGUAL PAY
The City shall pay one hundred dollars ($100) per month to each employee who has demonstrated oral proficiency in Spanish or another language which has been demonstrated to be of value to the City in its law enforcement operations. Employees will be tested for oral skill in the designated language by a vendor selected by the Human Resources Director/Manager and must successfully pass the examination to be eligible for bilingual premium. Periodic evaluation of incumbents receiving bilingual skill premium may be required. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Bilingual Premium.

ARTICLE 42 — DURATION OF CONTRACT
This MOU is effective July 1, 2025 and shall remain in full force and effect through June 30, 2028.

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 OFFICERS’

ASSOCIATION

CITY OF HERMOSA BEACH
________________________________
Robert Wexler, HBPOA Chief Negotiator
________________________________
Kurt Mateko, Police Sergeant
________________________________
Nicholas Garcia, Police Officer
________________________________
Luis Pineda, Police Officer
___________________________________
Daphne Anneet, City Negotiator
___________________________________
Steve Napolitano, Interim City Manager
___________________________________
Tiffany Nguyen, Human Resources
Manager
________________________________
Marco Juarez Ponce, Police Officer

A-1
Exhibit A

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 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 his 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 Association 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. 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

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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 policies and procedures.
b. Unfair treatment, including coercion, restraint, or reprisal. c. Reduction in force action — layoffs.
d. Promotion procedures implemented unfairly.
e. Classification of position.
f. Non-selection for training opportunities.
g. Discrimination because of race, religion, color, creed, or national origin. h. Any matter affecting an employee's work schedule, fringe benefits, holidays, vacation, sick leave, retirement, performance, rating, a change in classification, salary, work assignment, or any other matter affecting wages, hours or working conditions.
i. Discharge, demotion, or suspension.
j. 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.

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 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

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If the grievance is not resolved through the informal process, the employee shall have the right within fifteen (15) calendar days from the decision or completion of the informal process to file the grievance in writing 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 fifteen (15) calendar days after receiving the grievance. Failure of the grievant to serve such written notice fifteen (15) 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 fifteen (15) calendar days present the grievance in writing to the department head. In the event that no written response is given to the employee within fifteen (15) calendar 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 fifteen (15) calendar 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 fifteen (15) calendar days, present the grievance in writing to the City Manager or their designee for processing. Failure of the employee to take this action within fifteen (15) calendar 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 grievable matters as set forth in Section 4 of this procedure. An exception would be those matters that by Peoples Ordinance NS 211 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 fifteen (15) calendar 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 provided by the Federal Mediation and Conciliation Service within seven (7) calendar 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

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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. e. Any arbitrator appointed must be familiar with employee/management relations in public employment.
f. 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. g. The rules of conduct of proceedings shall be according to those procedures utilized by the Arbitration Service.
h. The findings of fact and the recommendations of the arbitrator shall be transmitted to the involved parties and the City Manager. i. The fees and expenses, including the making of the record of the arbitrator, shall be borne equally by the parties. 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. j. The arbitrator shall have no power to 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. k. The decision of the arbitrator shall be final upon the parties to the dispute unless either party, within 60 calendar days after the final written decision of the arbitrator is personally served upon the party, causes to be filed in a court of competent jurisdiction a complaint to review all or any part of the proceeding, upon litigation, the entire matter shall be reviewed and a trial de novo held.

Step Five — Final Process (Non-arbitral matters) — 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.

B-1
Exhibit B

CITY OF HERMOSA BEACH

POLICE DEPARTMENT DRUG AND ALCOHOL ABUSE POLICY
I. Purpose
The City of Hermosa Beach recognizes that behavior resulting from and consisting of the use of alcohol and other drugs detrimentally affects work performance, safety, security, and public confidence in City employees and presents a risk to City employees and the health and welfare of the citizens of the City of Hermosa Beach.

The special nature of the duties entrusted in public safety officers demands that the use of alcohol and other drugs, which may affect an employee's ability to perform his or her job, be strictly regulated.

II. Policy
It is the policy of the City of Hermosa Beach that employees shall not be under the influence of alcohol or drugs, nor possess alcohol or drugs while on City property or work locations, while on duty or on an "on-call" status; shall not utilize, sell or provide drugs or alcohol to any other employee or to any person while such employee is on duty or on an "on-call" status, nor have their ability to work impaired as a result of the use of alcohol or drugs.

The City reserves the right to search, without employee consent, all areas and property in which the City maintains control or joint control with the employee, except as restricted by the California Public Safety Officers Procedural Bill of Rights Act.

Refusal to submit immediately to an alcohol and/or drug analysis when requested by a sworn supervisor or manager for the causes for testing listed in this policy may constitute insubordination and may be grounds for discipline up to and including termination.

Employees reasonably suspected to be under the influence of alcohol or drugs shall be prevented from engaging in further work and shall be transported from the work site to a residence or other mutually agreed upon location following testing.

The City provides an Employee Assistance Program (EAP) to assist those employees who voluntarily seek help for alcohol or drug problems. The City and the Association encourage and support the rehabilitation of employees with alcohol and drug abuse problems through the constructive use of the EAP. It is understood that EAP counseling sessions are confidential except for compliance with mandatory EAP referral evaluations and program requirements.

III. Application
This policy applies to all employees in the classifications of Police Officer, Police Sergeant, Police Lieutenant, Police Captain and Chief of Police. This policy applies to alcohol and to

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all substances, drugs, medications, legal or illegal, which could impair an employee's ability to effectively and safely perform the functions of the job.

For the purposes of this policy, sworn supervisor and/or manager shall be defined as the classifications of Police Sergeant, Police Lieutenant, Police Captain, and Chief of Police.

IV. Employees Responsibilities
An employee must:
a. Not report to work or be subject to duty while his or her ability to perform job duties is or may be impaired due to on or off duty alcohol or drug use; b. Not possess or use alcohol or impairing drugs (illegal drugs and prescriptions drugs without a prescription) during working hours or while subject to duty, on breaks, during meal periods or at anytime while on duty on City property, with the exception of possession of substances which have been confiscated by arrest and are in transport to designated holding facilities, or incidents which are performed as part of the job and with the approval of the Chief of Police or Division Commander;
c. Submit immediately to an alcohol and drug test when requested by a sworn supervisor or manager acting pursuant to this policy;
d. Provide within 24 hours of request by the Medical Review Officer, a bona fide verification of a current valid prescription for any potentially impairing drug or medication declared by the employee before the drug test and identified when a drug test is positive. The prescription must be in the employee's name. A reasonable extension of time for the employee to provide a valid prescription may be granted by the Medical Review Officer not to exceed an additional 48 hours.

V. Management Responsibilities and Guidelines
a. Sworn supervisors and managers are responsible for reasonable enforcement of this policy.
b. Sworn supervisors and managers may request that an employee submit to a drug and/or alcohol test when any of the "Causes for Testing" items listed in this policy occur.
c. In cases of "reasonable suspicion", any sworn supervisor or manager requesting an employee to submit to a drug and/or alcohol test must document in writing the facts constituting reasonable suspicion that the employee in question is intoxicated or under the influence of drugs and submit said documentation to the Chief of Police prior to the end of the shift.

Prior to the employee being transported for testing, the observable facts constituting reasonable suspicion shall be confirmed by a second supervisor or manager.

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d. Any sworn supervisor encountering an employee who refuses an order to submit to a drug and/or alcohol analysis upon request shall remind the employee of the requirements and disciplinary consequences of this policy.

Where there is reasonable suspicion that the employee is under the influence of drugs or alcohol, the employee will be relieved of his/her weapon, which will be secured by the department until the employee is authorized to return to work. The supervisor shall then arrange transportation to the testing facility.
e. Sworn supervisors and managers shall not physically search the person of employees, nor shall they search the personal possession of employees without the freely given consent of, and in the presence of, the employee, or unless a valid search warrant has been obtained.
f. Sworn supervisors and managers shall notify the Chief of Police or designee when they have reasonable suspicion to believe that an employee may have illegal drugs in his or her possession or in personal property which is promptly accessible to the employee during work hours (i.e. a personal vehicle).

VI. Causes for Testing
Employees covered by this policy shall be tested for drugs or alcohol as specified below and whenever there is reasonable suspicion of an employee under the influence on work time.

1. Reasonable suspicion is a belief based on objective facts sufficient to lead a reasonably prudent supervisor to suspect that an employee is under the influence of drugs or alcohol so that the employee's ability to perform the functions of the job is impaired or so that the employee's ability to perform his or her job safely is reduced. These objective facts must be confirmed by a second sworn supervisor or manager. In addition, the supervisor or manager is required to take into account other possible explanations for observed behavior such as illness, lack of sleep, fatigue, and reactions to noxious fumes or smoke. For example, any of the following, alone or in combination, may constitute reasonable suspicion:
a. Slurred or thick speech;
b. Alcohol odor on breath;
c. Inability to perform work properly;
d. Unsteady walking and movement;
e. Erratic and unusual displayed behavior consistent and symptomatic with drug use/abuse;
f. Possession of alcohol or drugs;
g. Nystagmus;

2. Prior to initial appointment with the City of Hermosa Beach.

3. Prior to promotional appointment and during probation.

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4. Within 30 days of assignment to the Detective Division.

5. When the employee is involved in a traffic accident while operating a City vehicle and a determination is made that the employee is at fault. If fault cannot be immediately determined at the scene, the involved officer shall submit a urine sample for analysis. However, the sample will not be tested unless the officer is ultimately found most at fault for the collision or if fault cannot be determined. Otherwise, the sample will be destroyed without testing.

VII. Testing Procedure
Whenever a sworn supervisor or manager deems a drug test necessary for reasonable suspicion and the objective observations have been verified by a second person, the supervisor or manager or designee shall transport the employee to the City's medical facility for the test. The employee shall be paid for time spent at the examination. The City shall bear the expense of the examination, and shall provide transportation to and from the medical facility and the employee's work site.

Testing shall occur at the City's designated medical facility. The medical facility shall use a certified National Institute of Drug Abuse (NIDA) laboratory. The certification of laboratories performing drug testing for Federal agencies was developed by NIDA to assure strict adherence to the rigorous standards of testing and custody control form. Test results are returned to the Medical Review Officer (MRO).

The initial test is a process called Urine Drug Screen # 37042N. If all results are negative, the test is complete. If the initial test is positive, a secondary confirming test using the Gas Chromatography/Mass Spectophotometry (GCMS) method is conducted by the laboratory to verify the results. This test has been used as binding legal and medical precedent. If the subsequent test is negative, then the test is considered negative for all purposes. If the subsequent test confirms a positive finding, it is noted on the report and sent to the MRO.

At this point, in cases other than THC and cocaine, the MRO will contact the employee to discuss the possibility that the person has taken medication (prescription or otherwise) that was not indicated on the original form completed by the employee. The employee is not informed of a positive result, he or she is just asked to clarify any drug intake. The employee must provide within 24 hours of a request by the MRO, a bona fide verification of a valid prescription for the drug declared by the employee before the drug test and identified in the drug screen. The prescription must be in the employee's name and dated prior to the date the specimen was collected. A reasonable extension of time for the employee to provide a valid prescription may be granted by the Medical Review Officer not to exceed an additional 48 hours. If the employee does not provide acceptable verification of a valid prescription as determined by the MRO or if the prescription is not in the employee's name, the MRO will report a positive test result. The final results are then sent by the MRO to the City's Personnel Director.

Drugs tested for include, Amphetamines, Barbituates, Benzodiazepines, Cocaine, Methadone, Methaqualone, Opiate, PCP, THC, Propoxyphene, Anabolic Steroids and Alcohol. Cut off levels shall be consistent with the current guidelines issued by NIDA. Each drug screen performed shall include a test for all of the substances identified above.

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VIII. Medical Review Officer
The Medical Review Officer (MRO) shall be a licensed physician who has knowledge of substance abuse disorders and has appropriate medical training to interpret and evaluate an individual's positive test result together with his or her medical history and any other relevant biomedical information. The responsibility for the assignment of the appropriate qualified physician and for ensuring his/her availability is that of the City's Personnel Director. The Hermosa Beach Police Officers' Association shall participate in the selection of the Medical Review Officer.

IX. Results of Drug and/or Alcohol Testing
a. A positive result from a drug and/or alcohol analysis may result in appropriate disciplinary action, up to and including discharge. b. If an alcohol or drug test is positive for alcohol or drugs, the Personnel Director shall notify the Chief of Police who will initiate a personnel complaint in accordance with the Police Department's policies and procedures. c. Specimens shall be considered as positively confirmed following the secondary test using the GC/MS testing method if they fall above the cutoff levels listed in the NIDA guidelines.
d. All negative test specimens shall be destroyed within three (3) days of the negative test result provided to the Personnel Director. Positive test specimens shall be frozen and retained for a minimum of two (2) years.

X. Appeals
If the employee desires to appeal a positive test result, he or she may request a new testing of a remaining portion of the original urine sample, or split sample, within 5 business days of notification of the original test result. The split sample test by Gas Chromatography/Mass Spectophotometry (GC/MS) shall be conducted at the employee's expense and shall be conducted by any National Institute of Drug Abuse approved laboratory.

POLICE OFFICERS’ ASSOCIATION

MEMORANDUM OF UNDERSTANDING
JULY 1, 2025 – JUNE 30, 2028
August 26, 2025

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 for the Police Officers’ Association expired on June 30, 2025.

The City’s negotiating team met and conferred with representatives of the Police Officers’ Association (POA) to discuss wages, hours, and other terms and conditions of employment contained in the successor MOU. The City and the POA reached agreement in August 2025. The POA membership ratified the MOU on August 12, 2025.

2 classifications and
32 employees:
• Police Officer
• Police Sergeant
POLICE
OFFICERS’

ASSOCIATION

MEMBERSHIP

DISCUSSION
The tentative MOU between the City and the and the Hermosa Beach POA, include the following negotiated terms:
o Term of the agreement: July 1, 2025 - June 30, 2028.
o Base Pay (Article 13)
 3% effective 7/1/25
 3% effective 7/1/26
 3% effective 7/1/27
 Market adjustment of 8% for all classifications effective 7/1/25. o Insurance Coverage (Article 15)
 Increase life insurance coverage to $150,000
o Deferred Compensation (Article 16)
 The City shall make a monthly contribution in the amount of $50 to each employee’s 457(b) deferred compensation account

DISCUSSION
• Lateral Employee Incentive (Articles 17, 19, 21, and 24 o Lateral employees may be provided with credit for up to ten years of sworn law enforcement service with another agency toward meeting the City’s service time requirements for earning each of the following benefits: retiree medical, vacation, sick leave, and longevity pay • Vacation (Article 19)
o Increase vacation accrual rates to a maximum of 200 hours, commencing with the 20th year of service.
• Holidays (Article 20)
o All employees shall be credited with 12 hours of paid holiday leave per month. • Special Assignment Premiums, Acting Pay (Article 29)
o Employees temporarily assigned to perform the full range of duties of a higher classification shall receive a 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 5% increase to their current salary. During acting assignments, employees remain affiliated with and continue to be covered by this Agreement.

DISCUSSION
• Physical Fitness Time (Article 30)
o Employees shall receive 30 minutes of Comp Time (CTO) for working out a minimum of 30 minutes, prior to, or after, an assigned work shift, with a maximum credit of 60 hours per year. Employees will notify the watch commander (or designee) when they have worked out, immediately prior to, or immediately after, an assigned work shift, and will certify the total workout time by completing a request for CTO and submitting documentation of their work-out within the same pay period for which CTO credit is requested.
• Bilingual Pay (New Article – Article 41)
o The City shall pay one hundred dollars ($100) per month to each employee who has demonstrated oral proficiency in Spanish or another language which has been demonstrated to be of value to the City in its law enforcement operations. Employees will be tested for oral skill in the designated language by a vendor selected by the Human Resources Director/Manager and must successfully pass the examination to be eligible for bilingual premium. Periodic evaluation of incumbents receiving bilingual skill premium may be required. This pay shall be reported to CalPERS as “compensation earnable” pursuant to CCR 571(a)(4) and as “pensionable compensation” pursuant to CCR 571.1 (a)(3) – Bilingual Premium.
• Reopeners
o The parties agree to the following reopener clauses:
 Article 15 – Insurance Coverage – The parties agree to reopen negotiations concerning an increase to the City’s medical insurance contribution should the medical insurance premium for the lowest cost family HMO plan exceed the City contribution.  Article 36 – Discipline – The City has notified the Association of its desire to rescind Chapter 5, Police Officer Rules and Regulations (Blue Section) of the HBPD Policy and Procedure Manual to align with updated policies and procedures. The parties agree that during the term of this MOU, if requested by the City, Article 36 and Exhibit A of this MOU shall be reopened for the purpose of meeting and conferring regarding a Proposed Progressive Discipline Policy and related rescission of Chapter 5, Police Officer Rules and Regulations (Blue Section) and modification to Article 36.

FISCAL IMPACT
• The total cost of the negotiated changes is estimated to be $2,163,000 for FY 2026-2028

RECOMMENDATION:

Staff recommends City Council adopt a Resolution (Attachment 1) approving the Memorandum of Understanding (MOU) between the City of Hermosa Beach and the Hermosa Beach Police
Officers’ Association (POA) Bargaining Group (Attachment 2) for the period of July 1, 2025, through June 30, 2028.

THANK YOU!
Tiffany Nguyen, Human Resources Manager

City of Hermosa Beach | Page 1 of 2
Meeting Date: August 26, 2025
Staff Report No. 25-AS-064
Honorable Mayor and Members of the Hermosa Beach City Council ADOPT A RESOLUTION TO RETROACTIVELY APPROVE A SECTION 125

CAFETERIA PLAN AND ADOPTION AGREEMENT
(Human Resources Manager Tiffany Nguyen)
Recommended Action:

Staff recommends City Council:

1. Adopt a Resolution to approve a Section 125 Cafeteria Plan, retroactive to January 1, 2023; and

2. Authorize the City Manager to execute a Section 125 Cafeteria Plan Adoption Agreement, subject to approval by the City Attorney.

Executive Summary:

In January 2023, the City implemented a “Cafeteria Plan” under Section 125 of the Internal Revenue Services (IRS) Code. The IRS Code Section 125 permits an eligible employer to implement a “Cafeteria Plan” for the benefit of its eligible employees. This plan allows for payroll deductions for healthcare plans, other medical out-of-pocket expenses and dependent care expenses on a pretax basis.

Through a recent audit of files, it was recently discovered that the adoption of the City’s Section 125 Cafeteria Plan was not previously brought to Council for approval. As such, it is prudent for the City to obtain Council approval on this item as soon as possible.

Background:

A Section 125 Plan allows for pretax payroll deductions for healthcare plans, other medical out-of-pocket expenses and dependent care expenses. It also allows for employers to offer “cash-in-lieu” if employees opt out of medical coverage. To implement a Section 125 Cafeteria Plan, employers are required to follow a series of steps to ensure compliance with IRS regulations, labor laws, and best practices.

In 2023, the City followed required steps and established and implemented a Section 125 Cafeteria Plan. Employees now have the flexibility to utilize pre-tax dollars to pay for eligible healthcare plan, medical, and dependent care expenses. Additionally, based on existing MOUs between the City and certain bargaining units, employees may have the ability to receive cash-in-lieu if they were to opt out of medical coverage through the City.

City of Hermosa Beach | Page 2 of 2
Analysis:

One of the requirements to adopt a Section 125 Cafeteria Plan is to obtain governing body (i.e., City Council) approval to adopt the plan, to include a staff report and resolution.

However, a recent audit of files revealed that this step had not been completed prior to the implementation of the plan. As such, the City is currently not in compliance with IRS regulations. Therefore, it is imperative for the City to obtain approval for the adoption of this plan as soon as possible, so that the City can be in compliance with IRS regulations.

Fiscal Impact:

There is no immediate fiscal impact to the City associated with the recommended actions, as the plan was previously set up and implemented in Calendar Year 2030.

A Section 125 plan allows employees to receive certain health benefits on a pretax basis.

Generally, qualified Section 125 benefits are not subject to FICA, FUTA, Medicare or income tax withholding.

Attachments:

1. Resolution to Approve the City of Hermosa Beach Cafeteria Plan

2. Section 125 Cafeteria Plan Adoption Agreement
Respectfully Submitted by: Tiffany Nguyen, Human Resources Manager Noted for Fiscal Impact: Henry Chao, Finance Manager
Concur: Brandon Walker, Administrative Services Director Legal Review: Isabel Safie, BBK Law
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 APPROVING THE CITY OF HERMOSA BEACH

CAFETERIA PLAN
WHEREAS, Section 125 of the Internal Revenue Service Code ("Code") and the regulations thereunder permit an eligible employer to implement a Section 125 Plan for the benefit of its eligible employees; and
WHEREAS, a Section 125 plan allows for payroll deductions for health care plans, other medical out-of-pocket expenses and dependent care to be paid on a pre-tax basis via payroll deduction; and
WHEREAS, the City of Hermosa Beach, in accordance IRS regulations, wishes to establish a Section 125 plan to provide its eligible employees with the opportunity to choose among qualified benefits available to them under the Section 125 plan, make payments on a pre-tax basis, and allocate employer contributions among Section 125 choices; and
WHEREAS, the City of Hermosa Beach Cafeteria Plan document is the governing document which establishes the terms and conditions for the operation and administration of the Section 125 rules.

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

1. PLAN DOCUMENT. The staff for the City of Hermosa Beach independently considered the City of Hermosa Beach Cafeteria Plan document and finds that the plan document adequately outlines the terms and conditions of the Section 125.

2. ADOPTION OF CAFETERIA PLAN. The City of Hermosa Beach Cafeteria Plan, as customized for the benefit of the City’s employees pursuant to the enclosed adoption agreement, is hereby adopted effective January 1, 2023.

3.

4. GENERAL AUTHORIZATION The officers of the City of Hermosa Beach, and each of them individually, are hereby authorized and directed, for and in the name of and on behalf of the City of Hermosa Beach, to do any and all things and take any and all actions that may be necessary or advisable, in their discretion, in order to effect the purposes of this resolution, with retroaction to date of incorporation.

5. Effective Date This resolution shall take effect immediately upon its passage.

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

Robert 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

Copyright 2002-2022 Sterling Administration 1

ADOPTION AGREEMENT

CAFETERIA PLAN
The undersigned adopting employer hereby adopts this Plan. The Plan is intended to qualify as a cafeteria plan under Code section 125. The Plan shall consist of this Adoption Agreement, its related Basic Plan Document and any related Appendix and Addendum to the Adoption Agreement. Unless otherwise indicated, all Section references are to Sections in the Basic Plan Document.

COMPANY INFORMATION

1. Name of adopting employer (Plan Sponsor): City of Hermosa Beach

2. Address: 1315 Valley Drive

3. City: Hermosa Beach 4.State: CA 5. Zip: 90254

6. Phone number: 310-318-0202 7. Fax number: -

8. Plan Sponsor EIN: 95-6000720

9. Plan Sponsor fiscal year end: June 30
10a. Plan Sponsor entity type:
i. [ ] C Corporation
ii. [ ] S Corporation
iii. [ ] Non Profit Organization
iv. [ ] Partnership
v. [ ] Limited Liability Company
vi. [ ] Limited Liability Partnership
vii. [ ] Sole Proprietorship
viii. [ ] Union
ix. [X ] Government Agency
x. [ ] Other:
10b. If 10a.viii (Union) is selected, enter name of the representative of the parties who established or maintain the Plan:

11. State of organization of Plan Sponsor: California
12a. The Plan Sponsor is a member of an affiliated service group:
[ ] Yes [ X ] No
12b. If 12a is "Yes", list all members of the group (other than the Plan Sponsor):
13a. The Plan Sponsor is a member of a controlled group:
[ ] Yes [ X ] No
13b. If 13a is "Yes", list all members of the group (other than the Plan Sponsor):

PLAN INFORMATION
A. GENERAL INFORMATION.

1. Plan Number: 501

2. Plan name: a. City of Hermosa Beach CAFETERIA PLAN
b.

3. Effective Date:
3a. Original effective date of Plan: January 1, 2023
3b. Is this a restatement of a previously-adopted plan? [ ] Yes [ X ] No
3c. If A.3b is "Yes", effective date of Plan restatement:

Copyright 2002-2022 Sterling Administration 2
NOTE: If A.3b is "No", the Effective Date shall be the date specified in A.3a, otherwise the date specified in A.3c; provided, however, that when a provision of the Plan states another effective date, such stated specific effective date shall apply as to that provision. 4a. Plan Year means each 12-consecutive month period ending on December 31st (e.g. December 31). If the Plan Year changes, any special provisions regarding a short Plan Year should be placed in the Addendum to the Adoption Agreement.
4b. The Plan has a short plan year:
[ ] Yes [ X ] No
4c. If A.4b is "Yes", the short plan year begins and ends on .

5. Is the Plan Subject to ERISA?
[ X ] Yes [ ] No
Plan Features
10a. Premium Conversion Account. Contributions to fund a Premium Conversion Account are permitted (Section 4.01) (If "No", questions regarding Premium Conversion Accounts are disregarded.):
[ X ] Yes [ ] No
10b. If A.10a is "Yes", select the types of Contracts for which a Participant may seek reimbursement under Section 4.01:
i. [ X ] Employer Group Medical
ii. [ X ] Employer Dental
iii. [ X ] Employer Vision
iv. [ ] Employer Disability
v. [ ] Employer Group Term Life
vi. [ ] Individually - Owned Dental
vii. [ ] Individually - Owned Vision
viii. [ ] Individually - Owned Disability
ix. [ ] Other
10c. If A.10a is "Yes" and A.10b.ix (other contracts) is selected, describe other types of Contracts: . 11a. Health Care Reimbursement Account. Contributions to fund a Health Care Reimbursement Account are permitted (Section 4.02) (If "No", questions regarding Health Care Reimbursement Accounts are disregarded.):
[ X ] Yes [ ] No
11b. HSA Account. Contributions to fund an HSA Account are permitted (Section 4.08):
[ ] Yes [ X ] No

12. Dependent Care Assistance Account. Contributions to fund a Dependent Care Assistance Account are permitted (Section 4.03) (If "No", questions regarding Dependent Care Assistance Accounts are disregarded.):
[ X ] Yes [ ] No
NOTE: The maximum amount of expense that may be contributed/reimbursed in any Plan Year for the Dependent Care Assistance Account is the maximum amount permitted by federal tax law ($5,000 or $2,500 if the Participant is married and filing a separate federal tax return).

13. Adoption Assistance Account. Contributions to fund an Adoption Assistance Account are permitted. (Section 4.04) (If "No", questions regarding Adoption Assistance Accounts are disregarded.):
[ ] Yes [ X ] No
NOTE: The maximum amount of expense that may be contributed/reimbursed for the Adoption Assistance Account is the maximum amount permitted by federal tax law for the prior year ($15,950 for 2023). The annual limit shall be reduced for adoption assistance expenses incurred any prior Plan Year.

Simple Cafeteria Plan

15. Is the Plan a simple cafeteria plan as defined in Code section 125(j):
[ ] Yes [ X ] No

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NOTE: In order to be a simple cafeteria plan, the Employer must be an eligible employer (as defined in Code section 125(j)(5)) and the Plan must meet certain contribution, eligibility and participation requirements.

B. ELIGIBILITY.

Exclusions/Modifications
The term "Eligible Employee" shall not include (Check items B.1 - B.5a as appropriate):

NOTE: If A.15 is "Yes" (the Plan is a simple cafeteria plan), B.2 may not be selected and B.4 and B.5a may be selected only to the extent that the provisions do not violate the requirements on Code section 125(j).

1. [ ] Union. Any Employee who is included in a unit of Employees covered by a collective bargaining agreement, if benefits were the subject of good faith bargaining, and if the collective bargaining agreement does not provide for participation in this Plan.

2. [ X ] Any leased employee.

3. [ X ] Non-Resident Alien. Any Employee who is a non-resident alien who received no earned income (within the meaning of Code section 911(d)(2)) which constitutes income from services performed within the United States (within the meaning of Code section 861(a)(3)).

4. [ ] Part-time. Any Employee who is expected to work less than hours per week. 5a. [ ] Other. Other Employees described in B.5b (any exclusion must satisfy Code section 125(g) and the requirements under Section 5.01).
5b. If B.5a is selected, describe other Employees excluded from definition of Eligible Employee: . 6a. Allow immediate participation for all Eligible Employees employed on the date specified in B.6b:
[ X ] Yes [ ] No
6b. If B.6a is "Yes", all Eligible Employees employed on first day of the plan year shall become eligible to participate in the Plan as of such date.

7. If A.10a is "Yes", (Contributions to fund a Premium Conversion Account are permitted), an Employee shall be an Eligible Employee with respect to the Premium Conversion Account if the Employee is eligible to participate in the benefit plans described in A.10b:
[ X ] Yes [ ] No
8a. Indicate whether the Plan will make any other revisions to the term "Eligible Employee":
[ ] Yes [ X ] No
8b. If B.8a is "Yes", describe any further modifications to the term "Eligible Employee": .

Service Requirements

10. Minimum age requirement for an Eligible Employee to become eligible to be a Participant in the Plan:

None
NOTE: If A.15 is "Yes" (the Plan is a simple cafeteria plan), B.10 may not exceed 21.

11. Minimum service requirement for an Eligible Employee to become eligible to be a Participant in the Plan:
i. [ X ] None.
ii. [ ] Completion of hours of service.
iii. [ ] Completion of days of service.
iv. [ ] Completion of months of service.
v. [ ] Completion of years of service.

NOTE: If A.15 is "Yes" (the Plan is a simple cafeteria plan), B.11 may not exceed 1,000 hours of service or one year of service.
12a. Frequency of entry dates:
i. [ ] An Eligible Employee shall become a Participant in the Plan as soon as administratively feasible upon meeting the requirements of B.10 and B.11.
ii. [ X ] first day of each calendar month
iii. [ ] first day of each plan quarter
iv. [ ] first day of the first month and seventh month of the Plan Year

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v. [ ] first day of the Plan Year
12b. If B.12.a.i (immediate entry) is not selected, an Eligible Employee shall become a Participant in the Plan on the entry date selected in B.12a that is:
i. [ ] coincident with or next following
ii. [ X ] next following
the date the requirements of B.10 and B.11 are met.

13. If A.10a is "Yes", (Contributions to fund a Premium Conversion Account are permitted), an Eligible Employee shall become eligible to become a Participant in the Plan with respect to the Premium Conversion Account at the same date as he or she becomes eligible to participate in the Contracts(s) described in A.10b:
[ X ] Yes [ ] No
14a. Indicate whether the Plan will make any other revisions to the eligibility rules specified in B.10 - B.13:
[ ] Yes [ X ] No
NOTE: If A.15 is "Yes" (the Plan is a simple cafeteria plan), B.14a may only be "Yes" if the modifications in B.14b do not violate any requirements of Code section 125(j). 14b. If B.14a is "Yes", describe any further modifications to the eligibility rules specified in B.10 - B.13:
.

Transfers/Rehires

15. Permit Participants who are no longer Eligible Employees (for reasons other than Termination) to continue to participate in the Plan until the end of the Plan Year (Section 3.02):
[ X ] Yes [ ] No
NOTE: If "No" is selected, a Participant who has a change in job classification or a transfer that results in the Participant no longer qualifying as an Eligible Employee shall cease to be a Participant as of the effective date of such change of job classification or transfer.

16. Automatically reinstate benefit elections for Terminated Participants who are rehired within 30 days of Termination and permit new benefit elections for Terminated Participants who are rehired more than 30 days after Termination (Section 3.03(a)):
[ ] Yes [ X ] No
NOTE: If "No" is selected, a Terminated Participant shall not be able to Participate in the Plan until the later of the first day of the subsequent Plan Year or the first entry date following reemployment.

C. BENEFITS
Premium Conversion
1a. If A.10a is "Yes" (Contributions to fund a Premium Conversion Account are permitted), provide for automatic enrollment for the Premium Conversion Account:
[ ] Yes [ X ] No
NOTE: If C.1a is "Yes", a Participant shall be deemed to elect to contribute the entire amount of any premiums payable by the Participant for the benefit plans described in A.10b. 1b. If A.10a is "Yes" (Contributions to fund a Premium Conversion Account are permitted), provide for automatic adjustment of Participant elections for changes in the cost of Contracts pursuant to the terms of Treas. Reg. 1.125-4:
[ X ] Yes [ ] No
Health Care Reimbursement
2a. If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), select the maximum salary reduction amount that can be contributed to a Health Care Reimbursement Account in any Plan Year:
i. [ ] The maximum amount permitted under Code section 125(i) ii. [ X ] Other amount specified in C.2b

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NOTE: If C.2a.i is selected effective prior to 2015, the maximum amount shall be $2,500. 2b. If C.2a is "Other amount specified in C.2b", enter the maximum salary reduction amount that can be contributed to a Health Care Reimbursement Account in any Plan Year: $3,050.

NOTE: As of January 1, 2015, C.2 may not exceed the maximum permitted under Code section 125(i) ($3,050 in 2023).

3. If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), specify whether a Participant shall continue making contributions after Termination of employment for the remainder of the Plan Year:
i. [ ] Yes - Continue contributions on an after-tax basis and reimbursements will be allowed for the remainder of the Plan Year.
ii. [ X ] No - Contributions shall cease upon Termination and reimbursements will be allowed only for expenses incurred prior to Termination.

NOTE: Any required COBRA elections described in Section 4.06 shall supersede this C.3. 4a. If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), indicate whether a Participant may revise a Health Care Reimbursement Account election upon a change of status:
i. [ ] Yes - without limitation
ii. [ X ] Yes – but no decrease to the extent that new annual contribution amount would be less than the amount previously reimbursed at the time of the election change iii. [ ] Yes - a Participant may only increase an election upon a change of status iv. [ ] Yes - with limitations described in C.4b.
v. [ ] No
NOTE: The rules regarding the revision of Health Care Reimbursement Account elections in this C.4 are also subject to the conditions and limitations provided in C.12. 4b. If A.11 is "Yes" and if C.4a.iv is selected (Yes - with limitations described in C.4b), describe the limitations: .

Health Care Reimbursement - Eligible Expenses
5a. Excepted Benefits. Indicate the method of maintaining the Health Care Reimbursement Account as excepted benefits (only applicable if A.11 is "Yes"):
i. [ X ] Other Group Health Coverage and Maximum Benefit Payable within the meaning of Treas.

Reg. section 54.9831-1(c)(3)(v)
ii. [ ] Limited-scope benefits within the meaning of Treas. Reg. section 54.9831-1(c)(3)(i)-(ii) (dental and vision)
iii. [ ] Other: .

NOTE: If C.5a.i is selected, any employer contribution entered in C.9 shall not exceed the maximum benefits payable under Treas. Reg. section 54.9831-1(c)(3)(v).

NOTE: If C.5a.ii is selected, limited scope benefits may not include Long-term care insurance or any other benefits that are nonqualified benefits under Prop. Treas. Reg. section 1.125-1(q).5b. If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), exclude coverage for other expenses described in C.5c:
[ ] Yes [ X ] No
5c. If A.11 is "Yes" and C.5b is "Yes", describe other expenses that are not eligible for reimbursement: .

Health Care Reimbursement - Eligible Expenses
6a. If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), a Participant may only be reimbursed from his or her Health Care Reimbursement Account for expenses that are incurred by:
i. [ X ] Participant, spouse and dependents. The Participant, his or her spouse and all dependents within the meaning of Code section 152 as modified by Code section 105(b), and any child (as defined in section 152(f)(1)) of the Participant until his or her 26th birthday. ii. [ ] Persons covered under Company medical plan. The Participant, his or her spouse and all dependents within the meaning of Code section 152 as modified by Code section 105(b), and any child

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(as defined in section 152(f)(1)) of the Participant until his or her 26th birthday, but only if such persons are also covered under the Company-sponsored benefit plan specified in C.6b. iii. [ ] Participants Only. No spousal or dependent coverage. iv. [ ] Other. The persons described in C.6c.

NOTE: The Plan Administrator may extend coverage for children until the end of the calendar year in which a child turns age 26.
6b. If C.6a is "Persons covered under Company medical plan", indicate the name of the Company-sponsored benefit plan: .
6c. If C.6a is "Other", indicate who must incur expenses that can be reimbursed from a Participant's Health Care Reimbursement Account: .

NOTE: The definition in C.6c may not include anyone other than the Participant, his or her spouse and all dependents within the meaning of Code section 152 as modified by Code section 105(b), and any child (as defined in section 152(f)(1)) of the Participant until his or her 26th birthday.

NOTE: If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), reimbursements may be made for any expense that qualifies for exclusion from income under Code section 105(b) (other than certain long term care expenses and insurance premiums), except as provided in C.5 - C.6.
7a. Health Savings Accounts.If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), describe method to coordinate coverage in the Plan with Health Savings Accounts (Section

6.01(j)):
i. [ X ] None. Coverage in the Plan is not limited or the Plan is not used in conjunction with a Health Savings Account.
ii. [ ] Permitted Coverage. Coverage in the Plan is only provided for permitted insurance and other specified coverage (e.g., coverage for accidents, disability, dental care, vision care or preventive care within the meaning of Code section 223(c)(1) and Rev. Rul. 2004-45 (but not through insurance or for long-term care services).
iii. [ ] Post Deductible Coverage. The Plan will not pay or reimburse any medical expense incurred before the minimum annual deductible under Code section 223(c)(2)(A)(i) is satisfied. iv. [ ] Both Permitted and Post Deductible Coverage. Until the minimum annual deductible under Code section 223(c)(2)(A)(i) is satisfied, coverage in the Plan is only provided for permitted insurance and other specified coverage (e.g., coverage for accidents, disability, dental care, vision care or preventive care within the meaning of Code section 223(c)(1) and Rev. Rul. 2004-45 (but not through insurance or for long-term care services). The Plan will pay or reimburse all medical expenses otherwise allowed by the Plan incurred after the minimum annual deductible under Code section 223(c)(2)(A)(i) is satisfied.
7b. If A.11 is "Yes", C.7a is not "None" and D.3a is "Yes" (grace period allowed), indicate period when the limitations described in C.7a apply:
i. [ ] Entire Plan Year.
ii. [ ] Only during the grace period described in D.3.

NOTE: If no grace period is allowed in D.3a, the limitations in C.7a shall apply for the entire Plan Year. 7c. If A.11 is "Yes" and C.7a is not "None", the limitations shall apply to:
i. [ ] All Participants.
ii. [ ] Only Participants who are also eligible to participate in the high deductible health plan. iii. [ ] Only Participants who are also enrolled in the high deductible health plan.

NOTE: If C.7a is "None" or C.7c is not "All Participants", eligibility for a Health Savings Account may be limited.

8. HRA. If A.11 is "Yes" (Contributions to fund a Health Care Reimbursement Account are permitted), describe method to coordinate coverage in the Plan with a Company-sponsored health reimbursement arrangement ("HRA") for expenses that are reimbursable under both this Plan and the HRA (Section

6.01(e)):
i. [ X ] None. Plan is not used in conjunction with a Company-sponsored HRA. ii. [ ] HRA first. A Participant shall not be entitled to payment/reimbursement under the Health Care Reimbursement Account until the Participant has received his or her maximum reimbursement under the HRA.

Copyright 2002-2022 Sterling Administration 7
iii. [ ] Cafeteria plan first. A Participant shall not be entitled to payment/reimbursement under the HRA until the Participant has received his or her maximum reimbursement under the Health Care Reimbursement Account.

Company Contributions
9a. Indicate whether the Company may contribute to the Plan (Section 4.09):
i. [ X ] Yes - in Company's sole discretion.
ii. [ ] Yes - 2% of Compensation.
iii. [ ] Yes - the lesser of 6% of Compensation or 100% match of a Participant's salary reduction contribution.
iv. [ ] Yes - pursuant to the method described in C.9b. v. [ ] No.

NOTE: If A.15 is "Yes" (the Plan is a simple cafeteria plan), C.9a.ii, C.9a.iii or C.9a.iv must be selected. 9b. If C.9a is "Yes - pursuant to the method described in C.9b", describe how the contributions are determined and allocated: .

NOTE: If A.15 is "Yes" (the Plan is a simple cafeteria plan), C.9b must equal or exceed the formulas under options C.9a.ii or C.9a.iii.
9c. If C.9a is not "No", indicate whether the Plan permits Participants to elect cash in lieu of benefits:
i. [ ] No.
ii. [ X ] Yes - with limitation.
iii. [ ] Yes - without limitation.
9d. If C.9a is not "No" and C.9c is "Yes - with limitation", describe any limitations: Please refer to Page 5 of the current Benefits Guide.

Elections
NOTE: The Plan Administrator may establish a minimum dollar amount or percentage of Compensation for all elections provided that such minimum is non-discriminatory.

10. When may continuing Participants make elections regarding contributions (Section 4.06(b)):
i. [ ] The day period ending prior to the beginning of the Plan Year ii. [ X ] Pursuant to Plan Administrator procedures.

NOTE: If C.10.i is selected, the Plan Administrator may require that elections be made no later than a certain number of days prior to the beginning of the Plan Year. See Section 4.06(a) for procedures regarding new Participants.

11. The election for a continuing Participant who fails to make an election within the period described in C.10 shall be determined in accordance with the following (Section 4.06(c)-(d)):
i. [ X ] Election not to participate. The Participant shall be treated as having elected not to participate in the Plan.
ii. [ ] Continue same election. Elections for the applicable Plan Year shall be the same as the elections made in the prior Plan Year.
iii. [ ] Continue same election for the Premium Conversion Account. Elections for the applicable Plan Year shall be the same as the elections made in the prior Plan Year but only with respect to the Premium Conversion Account. The Participant shall be treated as having elected not to participate in the Plan with respect to any other Accounts.
12a. When may Participants modify elections regarding contributions (Section 4.07(b)):
i. [ ] At any time permitted under Treas. Reg. section 1.125-4. ii. [ X ] Pursuant to Plan Administrator procedures.
12b. Permit Participants to revoke an election of coverage under a group health plan:
i. [ X ] due to reduction in hours of service (Section 4.07(c) ii. [ ] due to enrollment in a qualified health plan offered through a marketplace established under Code section 1311 (Section 4.07(d))
NOTE: The group health plan may not be a health FSA and must provide minimum essential coverage (as defined in Code section 5000A(f)(1)).

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13a. A Participant may elect to continue coverage on a pre-tax or after tax basis for non medical benefits when on leave of absence under the FMLA (Section 4.06(f)):
i. [ X ] Yes - A Participant may continue coverage for all benefits to which he is entitled when on FMLA leave.
ii. [ ] No - A Participant may continue coverage for Premium Conversion Accounts and Health Care Reimbursement Accounts only.
13b. A Participant may elect to continue coverage on a pre-tax or after tax basis pursuant to C.13a when on a leave of absence other than a leave of absence under the FMLA:
i. [ X ] Yes.
ii. [ ] Yes - but subject to the conditions and limitations described in C.13c. iii. [ ] No.
13c. If C.13b is "Yes - but subject to conditions and limitations", describe the conditions and/or limitations:
.

Dependent Care Spend Down
15a. Indicate whether Employees that cease to Participate in the cafeteria plan may continue to be reimbursed for eligible dependent care expenses through the end of the Plan Year (or grace period if applicable):
[ ] Yes [ X ] No
15b. If C.15a is "Yes", enter the effective date: (must be on or after August 6, 2007. Please note that under the proposed cafeteria plan regulations, amendments must be effective on the later of the adoption date or effective date of the amendment).

D. PLAN OPERATIONS
Claims

1. Claims for reimbursement for an active Participant must be filed with the Plan Administrator (Section

6.01):
i. [ X ] within 90 days following the last day of each Plan Year. ii. [ ] by .
2a. The Plan provides for an earlier deadline for claims submission for Terminated Participants:
[ X ] Yes [ ] No
2b. If D.2a is Yes, claims for reimbursement for a Terminated Participant must be filed with the Plan Administrator (Section 6.01):
i. [ X ] within 90 days following Termination of employment. ii. [ ] by .
3a. Grace Period.The Plan provides for a 2-1/2 month grace period described in IRS Notice 2005-42 immediately following the end of each Plan Year (Section 4.05(c)):
i. [ ] Yes.
ii. [ ] Yes - but limited to the Accounts described in D.3c. iii. [ X ] No.
3b. If D.3a is not "No", enter the first day of the first Plan Year for which the grace period will apply:
.
3c. If D.3a is "Yes - but limited to certain Accounts", enter the Accounts that are eligible for the grace period:
.
3d. If D.3a is not "No" and D.1.i is selected (claims are due within a number of days after the end of the Plan Year), will the same number of days apply to the end of the grace period? i. [ ] Yes.
ii. [ ] No - same due date applies for grace period claims. iii. [ ] No - claims incurred during the grace period are due: . 4a. Carryover. Indicate whether the Plan will carryover unused Health Care Reimbursement Account balances at the end of the Plan Year as permitted in IRS Notice 2013-71. i. [ X ] Yes - balances up to $610 may be carried over (may not exceed $610)

Copyright 2002-2022 Sterling Administration 9
ii. [ ] No
NOTE: If carryover is selected (4a is "Yes"), the Plan may not provide for a grace period for the Health Care Reimbursement Account (3a.i may not be selected and 3a.ii must be restricted to accounts other than the Health Care Reimbursement Account). In addition, the Plan may not provide for a grace period in the year to which the carryover amount is applied.
4b. Effective date of the carryover option: January 1, 2023. 4c. Describe any limitations on the carryover provision:

NOTE: The same carryover limit must apply to all Participants. Unused amounts may not be cashed out or converted to any other taxable or nontaxable benefit.

NOTE: In addition to any limitations on carryover described above, the Plan Administrator may prescribe procedures for the carryover including, but not limited to, establishing a minimum amount for carryover and requiring a contribution to use the rollover in the following year provided that any such procedure is non-discriminatory.

5. Indicate whether the Company will provide debit, credit, and/or other stored-value cards for Health Care Reimbursement Accounts and/or Dependent Care Assistance Accounts (Section 6.01(i)):
[ X ] Yes [ ] No
Qualified Reservist Distributions(HEART Act)
6a. Permit Qualified Reservist Distributions:
[ X ] Yes [ ] No
6b. If D.6a is "Yes", enter the effective date: January 1, 2023 (must be on or after June 18, 2008. Please note that under the proposed cafeteria plan regulations, amendments must be effective on the later of the adoption date or effective date of the amendment).
6c. If D.6a is "Yes", the amount available as a Qualified Reservist Distribution will be:
i. [ ] The entire amount elected for the Health Care Reimbursement Account for the Plan Year minus Health Care Reimbursement Account reimbursements received as of the date of the Qualified Reservist Distribution request.
ii. [ X ] The amount contributed to the Health Care Reimbursement Account as of the date of the Qualified Reservist Distribution request minus Health Care Reimbursement Account reimbursements received as of the date of the Qualified Reservist Distribution request. iii. [ ] Other amount: (not exceeding the entire amount elected for the Health Care Reimbursement Account for the Plan Year minus reimbursements).

Plan Administrator
7a. Designation of Plan Administrator (Section 7.01):
i. [ X ] Plan Sponsor
ii. [ ] Committee appointed by Plan Sponsor
iii. [ ] Other
7b. If D.7a.iii is selected, Name of Plan Administrator:
8a. Type of indemnification for the Plan Administrator (Section 7.02):
i. [ ] None - the Company will not indemnify the Plan Administrator. ii. [ X ] Standard as provided in Section 7.02.
iii. [ ] Custom.
8b. If D.8a.iii (Custom) is selected, indemnification for the Plan Administrator is provided pursuant to an Addendum to the Adoption Agreement.

State Law Rules
10a. If A.5 is "No" (non-ERISA Plan), is the Plan subject to other state law rules?:
[ ] Yes [ ] No
10b. If A.5 is "No" (non-ERISA Plan) and D.10a is "Yes," enter any state law rules that apply to the Plan:
.

Copyright 2002-2022 Sterling Administration 10
E. EFFECTIVE DATES
Use this Section to provide any effective dates for Plan provisions other than the Effective Date specified in A.3.

F. EXECUTION PAGE
Failure to properly fill out the Adoption Agreement may result in the failure of the Plan to achieve its intended tax consequences.

The Plan shall consist of this Adoption Agreement, its related Basic Plan Document and any related Appendix and Addendum to the Adoption Agreement.

Additional participating employers may be specified in an addendum to the Adoption Agreement.

The undersigned agree to be bound by the terms of this Adoption Agreement and Basic Plan Document and acknowledge receipt of same.

The Plan Sponsor caused this Plan to be executed this day of , 2025.

CITY OF HERMOSA BEACH:

Signature:

Print Name:

Title/Position:

V3.00-3.00

ADOPT A RESOLUTION TO RETROACTIVELY
APPROVE A SECTION 125 CAFETERIA PLAN AND

ADOPTION AGREEMENT
August 26, 2025

BACKGROUND
•In January 2023, the City implemented a “Cafeteria Plan” under Section 125 of the Internal Revenue Services (IRS) Code. •A Section 125 Plan allows for pretax payroll deductions for healthcare plans, other medical out-of-pocket expenses and dependent care expenses.
• The City followed the required steps to establish and implement Section 125 Cafeteria Plan. However, a recent audit of files revealed that there was a requirement for the governing body (i.e., the City Council) to approve the plan by resolution to comply with IRS regulations.

RECOMMENDATION:
• Adopt a Resolution to approve a Section 125 Cafeteria Plan, retroactive to January 1, 2023; and
• Authorize the City Manager to execute a Section 125 Cafeteria Plan Adoption Agreement, subject to approval by the City Attorney.

City of Hermosa Beach | Page 1 of 5
Meeting Date: August 26, 2025
Staff Report No. 25-PW-050
Honorable Mayor and Members of the Hermosa Beach City Council

AWARD OF PROFESSIONAL SERVICES AGREEMENT FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR CIP 699 PARKING LOT C IMPROVEMENTS TO H.W. LOCHNER, INC.
(Public Works Director Joe SanClemente)
Recommended Action:

Staff recommends City Council:

1. Award a contract for construction management and inspection services for CIP 699 Parking Lot C Improvements to H.W. Lochner, Inc. at a not-to-exceed amount of $256,720.60 for a term of one year ending August 26, 2026, with an option to allow the City manager to extend up to one additional year (Attachment 1);

2. Authorize the Public Works Director to establish a 10 percent project contingency of $25,672;

3. Authorize the City Manager to approve contract amendments up to the amount of the approved project contingency; and

4. Authorize the Mayor to execute and the City Clerk to attest the proposed agreements subject to approval by the City Attorney.

Executive Summary:

The City of Hermosa Beach regularly employs third party consultants to provide specialty services to support the delivery of the City’s Capital Improvement Program (CIP). For CIP 699 - Parking Lot C Improvements project, which will advance high priority structural repair/rehabilitation of the existing concrete parking structure, the City sought expert services from qualified firms to provide construction management and inspection services to ensure a successful delivery of this critical project. Following a competitive Request for Proposals (RFP) process, staff recommends the City Council award the construction management and inspection services for CIP 699 - Parking Lot C Improvements Project to H.W. Lochner, Inc., at a not-to-exceed amount of $256,720.60, and a term of one year ending August 26, 2026. Staff also recommends City Council approval of an option to allow the City Manager to extend the Agreement up to one additional year and establish a 10 percent project contingency, if required.

Background:

CIP 699, Parking Lot C Improvements Project includes, but is not limited to, structural repairs and rehabilitation of the City’s Parking Structure. The project scope includes

City of Hermosa Beach | Page 2 of 5
repairs of various structural components, concrete repairs, installation of waterproof coating, installation of new guardrails and barrier cables, improvements in the electrical room, replacement of light fixtures, installation of new sump pumps and a new level transducer, power washing of concrete surfaces, restriping, and aesthetic repairs to the parking structure.

The scope of work for this project was developed based on a condition assessment report conducted by the City’s on-call civil engineering consultant in January 2021. The report recommended necessary structural, electrical, and mechanical system upgrades to address existing deficiencies. These repairs and upgrades are intended to extend the service life of various components, minimize downtime due to unscheduled repairs, and maintain the facility in optimal condition.

At its May 13, 2025 meeting, the City Council awarded the construction contract for CIP 699 Parking Lot C Structure Improvements to Slater Waterproofing Inc. in the amount of $1,740,542. Construction is anticipated to begin in the first week of October 2025, following the summer season to avoid peak parking demand, with completion expected by the end of December 2025. City staff are coordinating with adjacent property owners, including Triwell Properties and the Beach House Hotel, to address and mitigate potential impacts during the temporary closure of the structure. Residents and business owners directly affected will be notified of construction dates, the type of work to be performed, potential vehicular and pedestrian impacts, and contact information for key project personnel. Project updates will also be posted regularly on the City’s website.

Past Council Action
Meeting Date Description
May 13, 2025 City Council Awarded Construction Contract For CIP 699 Parking lot C Structure Improvements
Construction of the necessary improvements at Parking Lot C requires dedicated expert oversight to ensure quality, safety, and timely completion. While the Public Works Department regularly manages multiple construction contracts and third-party work in the public right-of-way, parking structures have unique structural and safety requirements that demand specialized knowledge. Staff will provide construction management oversight and will also retain the services of a qualified inspection and construction management consulting firm, specialized in parking structure construction and repairs, to augment staff’s efforts and provide technical oversight support.

Analysis:

On June 24, 2025, the City issued a Request for Proposals (RFP) 25-004 (Attachment 2) inviting experienced and highly qualified firms to submit a proposals through a competitive process to provide construction management and inspections services for the project. The RFP was posted on the City’s online bidding platform, Planet Bids. On

City of Hermosa Beach | Page 3 of 5
Tuesday, July 29, 2025, a total of seven proposals were received in response to the RFP.

To address the broader expertise and experience needed to assist the Public Works Department with the successful delivery of CIP 699 Parking Lot C Improvements Project, staff required each firm to assemble a team capable of performing, at a minimum, all elements of the scope of work as outlined in the RFP, including, but not limited to construction management and inspection services.

The proposing firms are listed below in alphabetical order:
 Ally Construction services;
 FCG Consultants;
 GAJ Engineering LLC;
 H.W. Lochner, Inc.;
 Kane Construction Services, Inc.;
 Paul Hansen Engineering LLC; and
 Transtech Engineers.

The proposals were independently evaluated in detail by a staff review panel and scored based on the following weighted criteria:
 Approach and Methods (30 percent)
o Demonstration of the team’s ability to be responsive to the City’s needs and provide a high level of customer service.
o Evidence of the team’s ability to successfully deliver project tasks and deliverables within the identified project budget and minimize cost overruns. o Evidence of the team’s ability to work collaboratively with other firms and stakeholders - in a dynamic working environment.
o Demonstration of the team’s commitment to accurate and superior work products and services as detailed in the project management plan. o A well thought-out and tailored approach to completing the work that responds to the City’s particular issues and needs.
o Incorporation of innovative and/or creative approaches for providing the services that will maximize efficient, cost-effective operations or increased performance capabilities
 Relevant Experience and Expertise (50 percent)
o The consultant team’s ability to dedicate a strong contract manager, with knowledge of the needs of a Public Works Department, that will serve as a single point of contact for the duration of the project. o Recent experience of providing similar services for other jurisdictions.

City of Hermosa Beach | Page 4 of 5
o Familiarity and experience with applicable industry standards and any relevant federal, state, or local requirements.
o The depth and appropriateness of experience of individual members of the technical team as they relate to the specific technical tasks called for by the project.
o The team’s experience and ability to clearly communicate technical concepts and terminology with the community.
 Administration (20 percent)
o Billing rates and ability to comply with billing requirements o The extent and nature of any proposed amendments to the City’s Professional Services Agreement.

The evaluation sought out firms with experience in construction management and inspection services of parking structures, as well as a proven track record of providing a responsive and knowledgeable personnel to ensure the timely execution of all construction oversight tasks. This includes the ability to coordinate effectively with contractors, maintain quality assurance, and address issues that may arise during the course of construction. Based on a comprehensive review, staff recommends awarding the construction management and inspection services contract for CIP 699 – Parking Lot C Improvements to H.W. Lochner, Inc. (Attachments 3 and 4). H.W. Lochner, Inc.’s proposal ranked the highest according to the weighted selection criteria compared to the other proposals received. The resulting proposer rankings are as follows:

Ranking Company
1 H.W. Lochner, Inc.
2 Transtech Engineers
3 FCG Consultants
4 Paul Hansen Engineering LLC
5 Kane Construction Services, Inc
6 Ally Construction services
7 GAJ Engineering, LLC
H.W. Lochner, Inc. exhibited the greatest understanding of the City’s needs and ability to provide construction management and inspection services while ensuring the highest quality. H.W. Lochner, Inc., has provided construction management and inspection services for both the CIP 689 Clark Building Renovations project and the Annual Pavement Improvements projects for the City since 2023, delivering exceptional service.

If approved, construction management and inspection services for CIP 699 – Parking Lot C Improvements would commence immediately.


City of Hermosa Beach | Page 5 of 5
Fiscal Impact:

The CIP 699 Parking Structure Lot C Improvement project budget is already budgeted as part of the City’s Adopted FY 2025-26 Budget.

There is available budget for the construction management and inspection services of $256,720.60 and a 10 percent contingency of $25,672 for a total construction management and professional services budget not to exceed $282,392.60.

Agreement Request
Agreement Request
Amount
FY 2025-26 Budget Dept.

Account #
Contract
Amount
H.W. Lochner, Inc. $282,392.60 301-8699-4201 $282,392.60 Attachments:

1. Proposed Agreement with H.W. Lochner, Inc. Proposal

2. RFP 25-004: On-Call Staff Augmentation Services

3. H.W. Lochner, Inc. Proposal

4. H.W. Lochner, Inc. Fee Proposal
Respectfully Submitted by: Karla Vargas, Assistant Engineer Concur: Saad Malim, City Engineer
Concur: Joe SanClemente, Public Works Director
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

CONTRACT FOR PROFESSIONAL SERVICES TO PROVIDE

CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR
CIP 699 PARKING STRUCTURE LOT “C” IMPROVEMENTS
BETWEEN THE CITY OF HERMOSA BEACH AND H.W LOCHNER, INC.

This AGREEMENT is entered into this 26th day of August, 2025, by and between the CITY OF Hermosa Beach, a general law city a municipal corporation (“CITY”) and H.W. Lochner, Inc., a California Corporation (“CONSULTANT”).

R E C I T A L S
A. The City desires to obtain on-call staff augmentation services.

B. The City does not have the personnel able and/or available to perform the services required under this agreement and therefore, the City desires to contract for consulting services to accomplish this work.

C. The Consultant warrants to the City that it has the qualifications, experience and facilities to perform properly and timely the services under this Agreement.

D. The City desires to contract with the Consultant to perform the services as described in Exhibit A of this Agreement.

NOW, THEREFORE, based on the foregoing recitals, the City and the Consultant agree as follows:

CONSIDERATION AND COMPENSATION As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, attached as EXHIBIT A.

As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement.

As additional consideration, CITY agrees to pay CONSULTANT a total of $256,720.60, for CONSULTANT’s services, unless otherwise specified by written amendment to this Agreement.

No additional compensation shall be paid for any other expenses incurred, unless first approved in writing by the City Manager or his/her designee.

CONSULTANT shall submit to CITY, by not later than the 10th day of each month, its invoice for services itemizing the fees and costs incurred during the previous month. CITY shall pay CONSULTANT all uncontested amounts set forth in CONSULTANT’s invoice within 30 days after it is received.

SCOPE OF SERVICES. CONSULTANT will perform the services and activities set forth in the SCOPE OF SERVICE attached hereto as Exhibit A and incorporated herein by this reference.

PW-PSA 25-004

Except as herein otherwise expressly specified to be furnished by CITY, CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space, and facilities necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement.

PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit an invoice to CITY which lists the reimbursable costs, the specific tasks performed, and, for work that includes deliverables, the percentage of the task completed during the billing period in accordance with the schedule of compensation incorporated in “Exhibit A.” TIME OF PERFORMANCE. The services of the CONSULTANT are to commence upon receipt of a notice to proceed from the CITY and shall continue until all authorized work is completed to the CITY’s reasonable satisfaction, in accordance with the schedule incorporated in “Exhibit A,” unless extended in writing by the CITY.

FAMILIARITY WITH WORK. By executing this Agreement, CONSULTANT represents that CONSULTANT has (a) thoroughly investigated and considered the scope of services to be performed; (b) carefully considered how the services should be performed; and (c) understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.

KEY PERSONNEL. CONSULTANT’s key person assigned to perform work under this Agreement is Brittany Duhn. CONSULTANT shall not assign another person to be in charge of the work contemplated by this Agreement without the prior written authorization of the City.

TERM OF AGREEMENT. The term of this Agreement shall commence upon execution by both parties and shall expire on August 26, 2026, unless earlier termination occurs under Section 11 of this Agreement, or this Agreement is extended in writing in advance by both parties.

CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties.

TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number.

PERMITS AND LICENSES. CONSULTANT will obtain and maintain during the term of this Agreement all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.

TERMINATION. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. Notice of termination shall be in writing.

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CONSULTANT may terminate this Agreement. Notice will be in writing at least 30 days before the effective termination date.

In the event of such termination, the CONSULTANT shall cease services as of the date of termination, and all finished or unfinished documents, data, drawings, maps, and other materials prepared by CONSULTANT shall, at CITY’s option, become CITY’s property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination.

Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated.

INDEMNIFICATION. To the extent permitted by law, CONSULTANT shall indemnify, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys fees, expert fees and all other costs and fees of litigation) of every nature to the extent caused by CONSULTANT's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT.

CONSULTANT shall promptly pay any final judgment rendered against CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONSULTANT’s negligence, recklessness or willful misconduct.

CONSULTANT shall reimburse the CITY its costs of defense, including without limitation reasonable attorneys fees, expert fees and all other costs and fees of litigation to the extent such fees, costs and all other costs are determined by the court of competent jurisdiction to have been caused by the actual negligence, recklessness or willful misconduct of the Consultant. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 17, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification.

ASSIGNABILITY. This Agreement is for CONSULTANT’s professional services. CONSULTANT’s attempts to assign the benefits or burdens of this Agreement without CITY’s written approval are prohibited and will be null and void.

INDEPENDENT CONSULTANT. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the

PW-PSA 25-004

right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only.

AUDIT OF RECORDS. CONSULTANT agrees that CITY, or designee, has the right to review, obtain, and copy all records pertaining to the performance of this Agreement. CONSULTANT agrees to provide CITY, or designee, with any relevant information requested and will permit CITY, or designee, access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this Agreement. CONSULTANT further agrees to maintain such records for a period of three (3) years following final payment under this Agreement.

CONSULTANT will keep all books, records, accounts and documents pertaining to this Agreement separate from other activities unrelated to this Agreement.

CORRECTIVE MEASURES. CONSULTANT will promptly implement any corrective measures required by CITY regarding the requirements and obligations of this Agreement.

CONSULTANT will be given a reasonable amount of time as determined by the City to implement said corrective measures. Failure of CONSULTANT to implement required corrective measures shall result in immediate termination of this Agreement.

INSURANCE REQUIREMENTS.

A. The CONSULTANT, at the CONSULTANT’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies:

1. Workers Compensation Insurance as required by law. The Consultant shall require all subcontractors similarly to provide such compensation insurance for their respective employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the CITY at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONSULTANT for City.

2. General Liability Coverage. The CONSULTANT shall maintain commercial general liability insurance in an amount of not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.

3. Automobile Liability Coverage. The CONSULTANT shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an

PW-PSA 25-004

amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

4. Professional Liability Coverage. The CONSULTANT shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors, or omissions which may arise from the CONSULTANT’S operations under this Agreement, whether such operations be by the CONSULTANT or by its employees, subcontractors, or sub-consultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit-per-occurrence basis. When coverage is provided on a “claims made basis,” CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect.

B. Endorsements. Each general liability, automobile liability and professional liability insurance policy shall be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California, or which is approved in writing by City, and shall be endorsed as follows. CONSULTANT also agrees to require all contractors, and subcontractors to do likewise.

1. “The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the CONSULTANT, including materials, parts, or equipment furnished in connection with such work or operations.”

2. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have, shall be considered excess insurance only and shall not contribute with this policy.

3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.

4. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents.

5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents, or volunteers.

6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the CITY.

C. CONSULTANT agrees to provide immediate notice to CITY of any claim or loss against CONSULTANT arising out of the work performed under this agreement. CITY assumes no

PW-PSA 25-004

obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY.

D. Any deductibles or self-insured retentions must be declared to and approved by the CITY.

At the CITY’s option, the CONSULTANT shall demonstrate financial capability for payment of such deductibles or self-insured retentions.

E. The CONSULTANT shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement.

F. Failure on the part of the CONSULTANT to procure or maintain required insurance shall constitute a material breach of contract under which the CITY may terminate this Agreement pursuant to Section 11 above.

G. The commercial general and automobile liability policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Consultant (as the named insured) should Consultant fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City Attorney and the Finance Director. Consultant understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Consultant as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Consultant’s behalf upon the Consultant’s failure or refusal to do so in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Consultant for breach of this Agreement in addition to any other damages incurred by City due to the breach.

USE OF OTHER CONSULTANTS. CONSULTANT must obtain CITY’s prior written approval to use any sub-consultants while performing any portion of this Agreement. Such approval must include approval of the proposed consultant and the terms of compensation.

FINAL PAYMENT ACCEPTANCE CONSTITUTES RELEASE. The acceptance by the CONSULTANT of the final payment made under this Agreement shall operate as and be a release of the CITY from all claims and liabilities for compensation to the CONSULTANT for anything done, furnished or relating to the CONSULTANT’S work or services. Acceptance of payment shall be any negotiation of the CITY’S check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by the CITY shall not constitute, nor be deemed, a release of the responsibility and liability of the CONSULTANT, its employees, sub-consultants and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be

PW-PSA 25-004

deemed to be an assumption of such responsibility or liability by the CITY for any defect or error in the work prepared by the Consultant, its employees, sub-consultants and agents.

CORRECTIONS. In addition to the above indemnification obligations, the CONSULTANT shall correct, at its expense, all errors in the work which may be disclosed during the City’s review of the Consultant’s report or plans. Should the Consultant fail to make such correction in a reasonably timely manner, such correction shall be made by the CITY, and the cost thereof shall be charged to the CONSULTANT. In addition to all other available remedies, the City may deduct the cost of such correction from any retention amount held by the City or may withhold payment otherwise owed CONSULTANT under this Agreement up to the amount of the cost of correction.

NON-APPROPRIATION OF FUNDS. Payments to be made to CONSULTANT by CITY for services preformed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that CITY does not appropriate sufficient funds for payment of CONSULTANT’S services beyond the current fiscal year, the Agreement shall cover payment for CONSULTANT’S services only to the conclusion of the last fiscal year in which CITY appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows:

CITY CONSULTANT
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
ATTN: Joe SanClemente
H.W. Lochner, Inc.
333 South Anita Drive Suite 800
Orange, CA 92868
ATTN: Zachary Wheeler
Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. Courtesy copies of notices may be sent via electronic mail, provided that the original notice is deposited in the U.S. mail or personally delivered as specified in this Section.

A. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT’s bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor

PW-PSA 25-004

has it agreed to pay any company or person, other than CONSULTANT’s bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability.

B. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party.

There will be no incidental or other beneficiaries of any of CONSULTANT’s or CITY’s obligations under this Agreement.

C. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County.

D. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written.

E. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.

F. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment with signatures of all parties to this Agreement. CITY’s city manager, or designee, may execute any such amendment on behalf of CITY.

ACCEPTANCE OF FACSIMILE OR ELECTRONIC SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by facsimile transmission or scanned and delivered via electronic mail. Such facsimile or electronic mail copies will be treated in all respects as having the same effect as an original signature.

FORCE MAJEURE. Should performance of this Agreement be impossible due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties’ control, then the Agreement will immediately terminate without obligation of either party to the other.

TIME IS OF ESSENCE. Time is of the essence to comply with dates and schedules to be provided.

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ATTORNEY’S FEES. The parties hereto acknowledge and agree that each will bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the negotiation, drafting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any party hereto to enforce this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that party or those parties may be entitled.

STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public agency.

OWNERSHIP OF DOCUMENTS. It is understood and agreed that the City shall own all documents and other work product of the Consultant, except the Consultant’s notes and workpapers, which pertain to the work performed under this Agreement. The City shall have the sole right to use such materials in its discretion and without further compensation to the Consultant, but any re-use of such documents by the City on any other project without prior written consent of the Consultant shall be at the sole risk of the City.

USE OF LOGO. The CITY grants the CONSULTANT permission to use its name, logo and/or trademark in deliverables produced by the CONSULTANT on the behalf of the CITY, such as written reports, presentation slides, press releases, social media graphics, and other public outreach materials. The CITY’s prior review of artwork and written approval is required for any use of CITY logo. CITY will provide an electronic copy of the most current logo to the CONSULTANT for use in materials. The CONSULTANT will, in turn, only use the most current logo of the CITY.

DISCLOSURE REQUIRED. (City and Consultant initials required at one of the following paragraphs)
By their respective initials next to this paragraph, City and Consultant hereby acknowledge that Consultant is a “consultant” for the purposes of the California Political Reform Act because Consultant’s duties would require him or her to make one or more of the governmental decisions set forth in Fair Political Practices Commission Regulation 18700.3(a) or otherwise serves in a staff capacity for which disclosure would otherwise be required were Consultant employed by the City.

Consultant hereby acknowledges his or her assuming-office, annual, and leaving-office financial reporting obligations under the California Political Reform Act and the City’s Conflict of Interest Code and agrees to comply with those obligations at his or her expense. Prior to consultant commencing services hereunder, the City’s Manager shall prepare and deliver to consultant a memorandum detailing the extent of Consultant’s disclosure obligations in accordance with the City’s Conflict of Interest Code.

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City Initials ______
Consultant Initials ______
OR
By their initials next to this paragraph, City and Consultant hereby acknowledge that Consultant is not a “consultant” for the purpose of the California Political Reform Act because Consultant’s duties and responsibilities are not within the scope of the definition of consultant in Fair Political Practice Commission Regulation 18700.3(a) and is otherwise not serving in staff capacity in accordance with the City’s Conflict of Interest Code.

City Initials ______
Consultant Initials ______
COMPLIANCE WITH COVID-19 VACCINATION POLICY. All CONSULTANT’S employees, agents, officers and subcontractors who will be physically present in the City and have contact with City officials and employees or with the public shall be fully vaccinated from COVID19. CONSULTANT agrees to certify in writing to CITY that it complies with the foregoing. [SIGNATURES ON THE FOLLOWING PAGE]

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IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.

CITY OF HERMOSA BEACH CONSULTANT
[MAYOR/CITY MANAGER] By: NAME/TITLE
ATTEST:

Myra Maravilla, City Clerk Taxpayer ID No.

APPROVED AS TO FORM:

Todd Leishman, Interim City Attorney

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
1 REQUEST FOR PROPOSALS NO. 25-004
FOR

CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR
CIP 699 PARKING STRUCTURE LOT “C” IMPROVEMENTS

IN THE CITY OF HERMOSA BEACH, CALIFORNIA

CITY OF HERMOSA BEACH
Department of Public Works
1315 Valley Drive
Hermosa Beach, CA 90254

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
2 CITY OF HERMOSA BEACH

1315 Valley Drive, Hermosa Beach, CA, 90254
Phone: (310) 318-0210, FAX: (310) 937-5015
www.hermosabeach.gov
RFP NUMBER: 25-004
RFP TITLE: PROJECT MANAGEMENT AND INSPECTION SERVICES
CIP 699 PARKING STRUCTURE LOT “C” IMPROVEMENTS
REQUESTING DEPARTMENT: Public Works – Engineering Division RELEASE DATE: June 24, 2025
DUE DATE: July 24, 2025 @ 2:00 p.m. (PST)
Notice is hereby given that the Department of Public Works of the City of Hermosa Beach will receive proposals for:

RFP# 25-004, PROJECT MANAGEMENT AND INSPECTION SERVICES CIP 699 PARKING STRUCTURE LOT “C” IMPROVEMENTS
Proposals must be submitted as PDF via the PlanetBids Portal (pbsystem.planetbids.com/portal/51313/portal-home) and will be received until 2:00 p.m. (PST), July 24, 2025.

Proposals will not be opened at that time but will be submitted to the Public Works Department for verification and compliance with specifications and subsequent recommendation to City Council for award of a contract or rejection of the responses, as deemed appropriate. The City reserves the right to make no award.

All questions regarding the content of the RFP shall be submitted on the PlanetBids Portal by no later than 2:00 pm on July 15, 2025.

All responses to questions will be transmitted via the Planetbids Portal.

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
3 Table of Contents

1. Introduction.....................................................................................................................................4

1.2 RFP Timeline.................................................................................................................................4

1.3 Submittal Procedures.............................................................................................................4

1.4 Contact ..................................................................................................................................5

1.5 General RFP Conditions..............................................................................................................5

2. Scope of Services................................................................................................................................10

2.1 City Location and Characteristics ...........................................................................................10

2.2 Description ................................................................................................................................10

3. Submittal Instructions........................................................................................................................17

3.1 Proposal Format ........................................................................................................................17

3.2 Proposal Content ......................................................................................................................17

3.2.1 Cover Letter........................................................................................................................17

3.2.2 Firm Profile ...........................................................................................................................17

3.2.3 Project Understanding and Approach to Scope of Work ...............................18 Statement of Project Understanding...............................................................................18 Organizational Chart..................................................................................................................18 Relevant Experience and References.......................................................................................19

3.2.6 Required Forms............................................................................................................22

3.2.7 Proposed Fee ..............................................................................................................22

4. Evaluation and Selection....................................................................................................................22

4.1 Review Process .........................................................................................................................22

5. Contract Expectations........................................................................................................................25

5.1 Contract Period.........................................................................................................................25

5.2 Professional Services Agreement............................................................................................25

5.3 Standards of Work.....................................................................................................................25

5.4 Invoicing....................................................................................................................................25

6.1 Certification of Qualifications ..............................................................................................26

6.2 Non-Collusion Affidavit .........................................................................................................27

6.3 Compliance with Insurance Requirements.........................................................................28

6.4 Acknowledgement of Professional Services Agreement...................................................29

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
4 1. Introduction

1.1 Invitation for Proposals
The City of Hermosa Beach (“City”) is seeking Proposals from qualified individuals or firms (“Consultant”) to provide Construction Management and Inspection Services for CIP 699- Parking Structure Lot “C” Improvements. The selected Consultant would assist the City’s Public Works Department by providing Construction Management and Inspection Services as related to the subject project. The scope of work includes repairs/rehabilitation of concrete work, waterproofing enhancement, installing new guardrails, new barrier cables, installation of new sump pumps and a new level transducer, power washing of the concrete surfaces, restriping, replacement of light fixtures and aesthetic repairs of the parking structure and other related work to complete the work per project’s plans and specifications. A copy of the plans and specifications has been included in this RFP.

1.2 RFP Timeline
RFP posted June 24, 2025
Deadline to submit written questions July 15, 2025 – 2 PM (PST) Posting of responses to questions July 17, 2025 – 2 PM (PST) Deadline to submit proposals July 24, 2025 - 2 PM (PST) Interviews for selected firms if the City
wishes to do so
TBD
Tentative award August 26, 2025

1.3 Submittal Procedures
Respondents shall submit one copy of the proposal and one copy of the proposed fee in PDF format (separate files) on the PlanetBids Portal.

No responses will be accepted after the listed date and time. The format, content, and procedures for submitting a proposal are provided in further detail within the RFP (see Section 3).

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
5 1.4 Contact
All questions regarding the content of the RFP shall be submitted on the PlanetBids Portal.

All responses to questions will be transmitted via the Planetbids Portal.

1.5 General RFP Conditions
The following instructions and conditions apply to this RFP:

Pre-Contractual Expenses
The City of Hermosa Beach shall not, in any event, be liable for any pre-contractual expenses incurred by any consultant. In addition, no consultant shall include any such expenses as part of the price proposed. Pre-contractual expenses are defined as expenses incurred by bidders in:
• Preparing a proposal in response to this RFP.
• Submitting that response to the City of Hermosa Beach. • Negotiating with the City of Hermosa Beach any matter related to this RFP, proposal, and/or contractual agreement.
• Any other expenses incurred by the consultant prior to the date of an executed contract.

Authority to Withdraw RFP and/or Not Award Contract
The City of Hermosa Beach reserves the right to withdraw this RFP at any time for any reason without prior notice. Further, the City makes no representations that any agreement will be awarded to any consultant responding to this RFP. The City expressly reserves the right to reject any and all responses to this RFP without indicating any reasons for such rejection(s).

The release of this RFP does not obligate or compel the City to enter into a contract or agreement.

Authority to Revise RFP and Request Additional Information The City reserves the rights to amend the RFP at any time, to determine the successful respondent(s), and to reject any or all responses or their components. Should it be necessary for the City to issue addendums to this RFP during the advertisement period, the City will post addendums to the PlanetBids Portal. It is the responsibility of all prospective respondents to check PlanetBids regularly to see whether any addenda or supplemental materials have been issued. Proposals shall acknowledge that the consultant is aware of all addendums which have been issued and has incorporated their provisions in their response by completing the Certification of Qualifications Form.

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
6 The City reserves the right to request additional information or clarifications from consultants where it may serve the City s best interest.

Other Conditions
• ADDITIONAL SERVICES. The Scope of Work describes the minimum work to be accomplished. Upon final selection of the firm(s), the Scope of Work may be modified and refined during negotiations with the City. Any proposer that provides additional services can include those services in the proposal and list them as additional services.
• AUTHORIZED SIGNATURES. Every proposal must be signed by the person or persons legally authorized to bind the consultant to a contract for the execution of the work.

Upon request of the City, any agent submitting a proposal on behalf of a consultant shall provide a current power of attorney certifying the agent’s authority to bind the consultant.
• AWARD OF QUALIFICATIONS. City reserves the right to negotiate final terms with the selected consultant, if any. Award may be made to the consultant offering the most advantageous proposal after consideration of all criteria. • COMPLIANCE WITH LAWS. All proposals shall comply with current federal, state, and other laws relative thereto.
• CONFLICT OF INTEREST. By signing the Certification of Qualifications , the consultant declares and warrants that no elected or appointed official, officer or employee of the City has been or shall be compensated, directly or indirectly, in connection with this proposal or any work connected with this proposal. Should any agreement be approved in connection with this RFP, consultant declares and warrants that no elected or appointed official, officer or employee of the City, during the term of his/her service with the City shall have any direct interest in that agreement, or obtain any present, anticipated, or future material benefit arising therefrom. • DISQUALIFICATION OF PROPOSER. If there is reason to believe that collusion exists among the consultants, the City may refuse to consider proposal from participants in such collusion. No person, firm, or corporation under the same or different name shall make, file, or be interested in more than one proposal for the same work unless alternate proposal are called for. Reasonable grounds for believing that any consultant is interested in more than one proposal for the same work will cause the rejection of all proposals for the work in which a consultant is interested. Consultants shall submit as part of their proposal documents the completed Non-Collusion Affidavit.
• EXAMINATION OF DOCUMENTS. It is the responsibility of the consultant to carefully and thoroughly examine and be familiar with these RFP documents, general conditions, all forms, specifications, drawings, plans, and addendums (if any).

Consultants shall satisfy themselves as to the character, quantity, and quality of work to be performed and materials, labor, supervision necessary to perform the work as specified by these documents. The failure or neglect of the consultant to examine documents shall in no way relieve the consultant from any obligations with respect Page 495 of 1055 RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
7 to the solicitation for and subsequent contract that may be awarded. The submission of a proposal shall constitute an acknowledgment upon which the City may rely that the consultant has thoroughly examined and is familiar with the RFP documents.

The failure or neglect of a consultant to receive or examine any of the documents shall in no way relieve the consultant from any obligations with respect to the proposal. No claim will be allowed for additional compensation that is based upon a lack of knowledge of any solicitation document.
• INTERPRETATION OF RFP DOCUMENTS. The city reserves the right to make corrections or clarifications of the information provided in this RFP. If any person is in doubt as to the true meaning of any part of this RFP document, or finds discrepancies or omissions in the document, the person may submit to the City a written request for an interpretation or correction. Oral statements, interpretations or clarifications concerning meaning or intent of the contents of this RFP by any person are unauthorized and invalid. Modifications to the RFP, including, but not limited to the scope of work, can be made only by written addendum issued by the City. Proposers shall submit all questions in writing to the contact listed in the announcement or submitted on the PlanetBids Portal. Proposers may not contact any other staff members with questions. The requesting party is responsible for prompt delivery of any requests. When the City considers interpretations necessary, interpretations will be in the form of an addendum to the RFP documents, and when issued, they will be sent as promptly as is practical to all parties recorded by the City as having received RFP documents. All such addenda shall become a part of the RFP document. It is the responsibility of each consultant to ensure the City has their correct business name, mailing address and e-mail address on file through the PlanetBids online portal. Any prospective consultants who obtained a set of RFP documents from the PlanetBids online portal are responsible for checking PlanetBids to verify if any subsequent Addendums were issued.
• IRREGULARITIES. City reserves the right to waive non-material irregularities if such would be in the best interest of the City as determined by the City Manager. • NON-DISCRIMINATION. Consultant represents and warrants that it does not and will not discriminate against any employee or applicant for employment because of race, religion, gender, color, national origin, sexual orientation, ancestry, marital status, physical condition, pregnancy or pregnancy-related condition, political affiliation or opinion, age or medical condition.
• NON-EXCLUSIVE. Should the City make an award, the successful consultant will enter into a NON-EXCLUSIVE professional services agreement and the City reserves the right to enter into agreements with other firms.
• OFFERS OF MORE THAN ONE PRICE. Consultants are NOT allowed to submit more than one rate schedule.

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
8 • OWNERSHIP. All data, documents and other products used or developed during the RFP process become the property of the City upon submission. All documents submitted in response to this RFP shall become the property of the City and a matter of public record pursuant to Government Code sections 6250 et seq. Proposal should not be marked as confidential or proprietary, and City may refuse to consider a proposal so marked. All information contained within the proposal will become a matter of public record. It is the responsibility of each bidder to clearly identify any and all information contained within its proposal that it considers to be confidential and/or proprietary. To the extent that the City agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.
• PROFESSIONAL SERVICES AGREEMENT. Prior to awarding any work, the selected Consultant will be required to execute a professional services agreement (sample attached) with the City. Any proposed change to the agreement shall be identified in the response to the RFP and shall be subject to the sole approval of the City. The City requires the Consultant to obtain and maintain a policy of professional liability and other insurance as indicated in the agreement.
• NO PUBLIC OPENING/PUBLIC RECORDS ACT. Proposal shall be opened and its contents secured by City staff to prevent disclosure during the evaluative process and the process of negotiating with competing consultants. Adequate precautions shall be taken to treat each consultant fairly and to insure that information gleaned from competing proposals is not disclosed to other Consultants. Prices and other information concerning the proposal shall not be disclosed until a recommendation for award is made to the awarding authority.
• PUBLIC RECORD. All proposals submitted in response to this RFP will become the property of the City upon submittal and a matter of public record when the City selects a proposer for recommendation to the City Council for its consideration pursuant to applicable law.
• REPRESENTATIONS. The consultant understands and acknowledges that the representations made in their submitted proposal are material and important, and will be relied on by the City in evaluation of the proposal . Consultant misrepresentation shall be treated as fraudulent concealment from the City of the facts relating to the proposal.
• SEVERABILITY. If any provisions or portion of any provisions, of this RFP are held invalid, illegal or unenforceable, they shall be severed from the RFP and the remaining provisions shall be valid and enforceable.
• SUBCONTRACTOR INFORMATION. If the proposal includes the use of subconsultants, the consultant must identify specific subconsultants and the specific requirements of this RFP for which each proposed subconsultant would perform services. All subconsultant for work services must follow all required provisions of the prime contract.
• VALIDITY. Proposal must be valid for a period of 90 days from the July 24, 2025.

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
9 • WITHDRAWAL Proposals. Consultants’ authorized representative may withdraw from the RFP process only by written request received by this RFP’s contact person before the Submittal Deadline.
• BUSINESS LICENSE. The selected firm(s) must obtain a City of Hermosa Beach Business license and maintain a current certificate of insurance with the City for the duration of the Professional Service Agreement.

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
10 2. Scope of Services

2.1 City Location and Characteristics
The City of Hermosa Beach is located within the southwestern coastal portion of Los Angeles County in what is commonly referred to locally as the “South Bay” area. The City is bounded on the north by the City of Manhattan Beach, on the south by the City of Redondo Beach, on the east by the City of Redondo Beach and the City of Manhattan Beach, and on the west by the Pacific Ocean. The City limits for Hermosa Beach encompass a relatively small land area, approximately 1.4 square miles. Hermosa Beach is thriving, and engaged community, with some 20,000 residents and draws a high number of visitors to its beaches and downtown.

Governed by a five-member City Council with members elected at large, Hermosa Beach operates under the council/city manager form of government as a general law city. Like the community, the Council is informed, educated, and engaged. The programs and services provided by the City are accomplished through seven City departments:

Administrative Services, City Clerk, City Manager, Community Development, Community Resources, Police, and Public Works.

2.2 Description
The Public Works Department is responsible for engineering and oversight of the City's Capital Improvement Program (“CIP”) and maintenance of City facilities. The City is seeking Proposals from qualified consultants, or team of consultants, (“Consultant”) to provide Construction Management and Inspection Services for CIP 699- Parking Structure Lot “C” Improvements” Project. The selected Consultant would assist the City’s Public Works Department to manage the subject project during its pre-construction, construction, post construction and close-out phases. Consultants must have the expertise, experience, and demonstrated resources available to perform the work described in this RFP.

Prospective firms should have significant experience, expertise, and familiarity in working with public agencies to provide the service(s) submitted in their Proposals in addition to specific services identified in this RFP.

The Scope of Work, as may be modified through negotiation and/or by written addendum issued by the City, will be made a part of the Agreement. The selected firm(s) will be expected to furnish all personnel to provide the following services.

2.3 General Scope of Work
The City of Hermosa Beach Public Works Department is requesting proposals for Construction Management, and Inspection services for CIP 699 -Parking Structure Lot “C” Improvements Project. This project has been awarded to a contractor. The City will issue a Notice to Proceed to the Contractor to Page 499 of 1055 start work on the project during the first week of RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
11 October 2025. According to the Project’s specifications, work shall be completed by the contractor within seventy- five (75) working days from the date of the Notice to Proceed.

The subject project is being funded through the City’s Capital Improvement Project’s fund. The value of the construction contract is $1,750,000. Copies of the Project Plans and Specifications have been included in this RFP for reference.

This RFP is intended to establish the specifications, terms, and conditions governing the selection of the firm to provide Construction Management and Inspection Services to the City for the subject project.

The contract term is expected to be from September of 2025 for the duration of the subject project and until the subject project has been fully accepted by the City. A construction contract has been awarded with the anticipated construction start date of October 6, 2025.

The parking structure is utilized by the members of public however, several parking stalls are reserved for the exclusive use of the adjacent businesses, including a hotel and office buildings. Therefore, effective communication with these stakeholders is crucial to the overall success of this project.

General:

The City is interested in contracting with a consultant that will conduct and coordinate specified tasks related to advancing CIP 699- Parking Structure Lot “C” Improvements Project (“Project”) through its pre- construction, construction and post-construction phases.

The Consultant shall comply with all insurance requirements of the City of Hermosa Beach, included in the sample contract in Attachment 1.

Services to be Provided:

The selected Consultant shall provide all services to complete Construction Management and Inspection services for the Project. The scope of services shall be fully outlined in the proposal including approach, personnel, and the cost and estimated time to perform the services. The scope of work may consist of the following items, but are not limited to the following:
• Construction Management– Consultant shall provide a Construction Manager (CM) for the duration of the Project. The proposal shall also include, but not limited to, labor compliance, and any other activities as deemed necessary by the Consultant to implement the improvement on this project. • The CM shall provide expertise in construction management and contract administration required to successfully complete this project. The City will not expect the CM to serve as the Project Manager (PM). City staff perform the duties of the PM. The role of the CM is different than that of the PM in that the CM is responsible for management and observation of construction work whereas Page 500 of 1055 RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
12 the PM only has an oversight role during construction and is responsible for the entire Project. The CM will be competent with all components of the Project and will be charged with successful completion of construction in compliance with the Project’s documents. Required material testing will be provided by a third party.
• Project Coordination– The selected Consultant must provide an experienced CM who has successfully delivered services on similar projects with a minimum 5 years of experience. The CM must be able to perform the following:
o Management
 Manage and coordinate all aspects of the project inclusive of services identified in the Request for Proposal (RFP).
 Coordinate with City staff, regulatory agencies, and project stakeholders.
 Prepare statements of working days and distribute them to the construction contractor on a weekly basis.
 Coordinate design changes.
 Participate in field meetings and document issues, findings, direction, changes, etc., and develop solutions.
 Provide the necessary personnel, equipment and transportation to facilitate the performance of the intended construction management services.
 Notify the City immediately if the proposed work schedule does not conform to the contract documents, including the plans, specifications, and permits, or that may require special inspection or testing, or work stoppage.
 Identify the scope of work for potential contract change orders and notify the City.
 Provide weekly progress reports to the City on the status of the Project, indicating major work activities, status of RFIs, submittals, change orders and other required information utilizing the City’s adopted project management tool, Procore. Reports may be requested more frequently or in a separate format, as requested by the city.
 Ensure that the construction contractor complies with all laws, rules, regulations, permits, and orders as provided by the contract.  Ensure compliance with approved Quality Assurance Program (QAP).  Other improvements/activities (e.g. optional items) as deemed necessary by the Consultant to implement the improvements on this Project. These optional items shall be included in the approach section of the proposal and shall also be included in the fee. o Meetings
 Conduct a pre-construction meeting and prepare agenda and minutes. Prior to the meeting, review PS&E and identify potential issues.
 Conduct and lead weekly construction progress meetings and prepare minutes. Prepare and distribute meeting agendas and Page 501 of 1055 RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
13 minutes.
o Schedule and Budget
 Deliver Project on time and within budget.
 Review Progress Schedule (Critical Path Method) by the construction contractor and recommend for approval.
 The CM shall review project-related invoices and progress payments; submit all invoices to the city’s PM with a
recommendation stating the proper amount for payment.
 Prepare change orders in the standard City format. Submit to City for review and approval.
 Maintain an accounting of construction costs including approved change orders.
 Review payment requests. Prepare monthly progress payments and recommend approval.
 Prepare independent cost estimates for any changes resulting from design revisions or change in field conditions.
 Evaluate the merit of any potential claims, or requests for equitable adjustment submitted by the construction contractor. o Miscellaneous
 Review and coordinate approval of shop drawings with the design consultant.
 Review and approve material submittals.
 Log, track, and process submittals, Requests for Information (RFIs), Requests for Changes (RFCs), Contract Change Orders (CCOs), field directives, Notices of Potential Claim (NOPCs), Non-Conformance Reports (NCRs), construction schedule, and detailed traffic control plan. Consultant shall utilize the City’s construction management software “Procore”.
 Provide City with as-built and electronic set of drawings at Project completion.
 Monitor and review the construction contractor's as-built redlined drawings.
 Monitor materials documentation and testing results, as well as enforce corrections.
 Review and approve the construction contractor's safety program.  Review and approve traffic control plans.
 Process all Project documentation per City and standard format.  Maintain Project files per City guidelines.
 Other Project contract and construction management responsibilities as assigned.
 Advise the City of all complaints and inquiries from property owners, citizens, officials, or others and assist in the investigation and answering of such complaints and inquiries. Maintain a log showing disposition of each complaint and inquiry.
 The CM shall not authorize deviations from the construction contract documents without the City's consent.
 The CM shall not authorize change orders or extra work for the Project without the City's consent.
 The CM shall review the Contractor's videotape of preconstruction Page 502 of 1055 RFP 25-004 City of Hermosa Beach
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14 site conditions prior to any construction operation to confirm existing conditions within the limits of work, adjacent areas, and haul routes to document and clearly depict pre-existing conditions and prepare additional videotape and/or photographs to
document site conditions as required to supplement the
Contractor's videotape.
 The CM shall take and share construction documentation photographs on a regular basis; maintain a digital photographic library of all significant construction activities available for review on at least a weekly basis via project management software; provide unique file names for photos with date and location information included; take additional photographs to document differing site conditions, change order and claim items, and any special or unique conditions as they arise.
 The CM shall incorporate new software capabilities (Blue Beam, Procore, etc.) that allow photographs taken in the field to be linked to a PDF of the site plan/drawing/detail of the photographed location and provide a report of these photos linked to their location on a weekly basis, with photos uploaded to the approved project document management site regularly.
 The CM shall ensure that all relevant project communications are documented and promptly distributed to the city and applicable parties. All original project documents and final project reports shall be furnished to the city within 60 days following the city’s determination of Substantial Completion.
 The CM shall maintain field memoranda, transmittals, updated schedules, logs of shop drawings and other submittals, logs of RFI’s, change orders, progress payment requests, progress meeting reports, daily inspection reports, dates of utility service interruptions, and all other project
 The CM shall be responsible for assisting the PM with all aspects of Public Works contract compliance, change/claims negotiations and processing, and contract interpretations and enforcement.  The CM shall coordinate testing and specialty services conducted by third parties, review daily inspection notes and identify and report nonconforming items.
 The CM shall notify the city of significant problems and discrepancies; assist the city with interpreting drawings, specifications and reference standards; monitor construction activities and schedules; assist the city with resolving constructability problems.
 Coordinate a final walk-through with all affected stakeholders, prepare punch list, certify completion of the Project, and recommend acceptance.
 Finalize record drawings, construction contract bid items, claims, and change orders and punch list items. Reconcile all accounting.  Prepare all final reports, including report of completion for acceptance of the Project.
 Finalize and deliver all construction files to the city. All files shall be

RFP 25-004 City of Hermosa Beach
Construction Management and Inspection Services
CIP 699 Parking Structure Lot “C” Improvements
15 digitized and provided both in electronic and hardcopy format. • Construction Inspection– The selected Consultant must provide an experienced Construction Inspector (Inspector) who has successfully provided inspection services for projects similar in scope of work with at least 5 years of relevant experience. The Inspector tasks will include, but are not limited to the following:
 Review and inspection of the Contractor’s work and operations regarding scope of work per Project’s contract documents, safety, traffic control, quality and quantity of work. Ensures Contractor’s adherence to the environmental and regulatory conditions of the contract.
 Ensure Project construction is completed in accordance with approved plans, specifications, and estimate (PS&E) and referenced standards.
 In coordination with the CM and the City, resolve conflicts between plans and specifications and actual site conditions.
 Maintain complete and accurate daily contract records (including photographs). Records shall be in the format requested by the City.

Also, records should document any significant discussions or occurrences that occur in the field. Responsible for quantity measurements and calculations for work performed.
 Ensure that all materials incorporated into the work are acceptable and of good quality. Obtain Certificates of Compliance and/or completes field releases of material.
 Assist in tracking approved changes for as-built records.  Daily communication with the CM and the City on project status.  The Inspector shall visit the project site daily for the life of the project.  Coordinate with City staff and other Project stakeholders.  Complete daily measurements of quantities of work with the construction contractor and daily diaries.
 Prepare monthly quantity estimates for use in progress payments.  Provide daily diaries reports to City or its designee on a weekly basis.  Maintain a daily diary which shall describe in detail all work accomplished on a daily basis, weather conditions, number of personnel employed, and labor classification, at the site by the construction contractor, quantities of materials incorporated into the project, quantities of bid item work completed, construction equipment at the site, deliveries of construction materials, material shortages, tests, labor disputes, general observations, and any unusual occurrences.
 Attend all Project meetings such as preconstruction, field, and progress meetings.
 Provide complete and documented measurements and
calculations to administer progress payments, change orders, extra work, etc.
 Each working day, meet with the construction contractor to review proposed work plans, including specific details that may affect progress. Inform the CM and the City of any work which may result in a noteworthy impact to the city.
 Closely monitor material, and other necessary testing results and require the construction contractor to provide corrective measures Page 504 of 1055 RFP 25-004 City of Hermosa Beach
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16 to achieve compliance.
 Maintain copies of all permits needed to construct the Project and enforce special requirements of each.
 Ensure compliance with applicable regulations controlling the work.  Perform SWPPP/WPCP compliance inspections and related duties. Document and take appropriate action to correct SWPPP/WPCP and/or BMP deficiencies.
 Document all contractor delays, reasons for delay, length of time for delay, and phases of work.
 Document that the required posters and wage rates are displayed at the job site
 Other related and required tasks.

2.4 Relevant Plans, Policies, Programs, or Projects
Proposers should review the CIP 699 Parking Lot “C” Improvements plan and specifications ( Attachment 2).