La Palma City Council
May 6, 2025

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CLINT NAGASUGI
The Dot Printer, Inc., President
Notwithstanding the foregoing, the Parties acknowledge that persons other than the abovedesignated project manager of the Consultant may perform tasks or services under this Agreement if the performance of such tasks or services is under the supervision and control of the Consultant’s project manager. The Consultant shall not alter the assignment of the above-designated project manager without the prior written approval of the Contract Administrator.

1.11 Additional Services. If the City changes the scope of the Consultant Services to be performed by the Consultant, or if the Consultant is requested to perform services not specifically described in the Scope of Work (“Additional Services”), the Consultant shall perform such services as are necessary to complete the work, and compensation for the work performed shall be paid by the City in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B” and incorporated herein by this reference, or as otherwise may be agreed in writing by the City and the Consultant. It is expressly understood by the Consultant that the provisions of this Section 1.11 shall not apply to services specifically set forth in the Scope of Work or reasonably contemplated therein. The Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than the Consultant anticipates and that the Consultant shall not be entitled to additional compensation therefor. Unless contradictory of this Section 1.11, all provisions in this Agreement applicable to the Consultant’s performance of the Consultant Services shall also apply to the Additional Services.

2. COMPENSATION TO CONSULTANT

2.1 Payment by the City. The City shall pay to the Consultant for the performance of the Consultant Services compensation in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B”.

2.2 Invoices. The Consultant shall invoice the City on a monthly basis for all work performed by the Consultant under this Agreement. Invoices shall include billings for all charges, including authorized direct costs incurred by the Consultant during the month covered by the invoice. All charges for labor or professional services shall describe with specificity the services rendered and shall set forth the number of hours worked and hourly rates in accordance with the Budget and Fee Schedule. Within thirty (30) days of receipt of an invoice, and upon determination by the City that the invoice is in order and that the Consultant has performed all requested or required services in a timely and competent manner, the City shall pay such invoice.

2.3 Record of Payment. The Consultant shall maintain records on all services for and charges to the City under this Agreement for a period of not less than twenty-four (24) months, or for any longer period required by law, after the termination of this Agreement, and make such records available for review and audit if requested by the City at any time during the term, or within twenty-four (24) months, or for any longer period required by law, after the termination of this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

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3. LEGAL RESPONSIBILITIES

3.1 Compliance with Law. The Consultant shall keep fully informed of all Federal and State laws and regional, county, and municipal ordinances and regulations which may in any manner affect those employed by the Consultant or the performance by the Consultant of any tasks or services for or on behalf of the City. The Consultant shall at all times observe and comply with all such laws, ordinances, and regulations, and shall be responsible for the compliance therewith of all work and services performed by the Consultant by or on behalf of the City.

3.2 Independent Consultant. The Consultant is retained as an independent Consultant only, for the sole purpose of rendering the Consultant Services, and is not an employee of the City. The City shall have the right to control the Consultant only as to results of the Consultant’s services rendered pursuant to this Agreement, and the City shall not have the right to control the means by which the Consultant accomplishes the services performed under this Agreement.

3.3 Non-Discrimination. The Consultant shall not discriminate against any employee or applicant for employment because of any impermissible classification pursuant to Federal or State law, including, but not limited to, race, color, religion, national origin, gender, physical or mental disability, age, military status, sexual orientation, gender identity, gender expression, or marital or familial status. The Consultant shall incorporate the foregoing provisions in all subcontracts.

3.4 Proprietary Information. All proprietary information developed by the Consultant in connection with, or resulting from, this Agreement, including but not limited to inventions, discoveries, improvements, copyrights, patents, maps, reports, textual material, or software programs, shall be the sole and exclusive property of the City, without restriction or limitation upon their use. The Consultant agrees that the compensation to be paid pursuant to this Agreement includes adequate and sufficient compensation for any proprietary information developed in connection with or resulting from the performance of the Consultant Services under this Agreement. The Consultant further understands and agrees that full disclosure of all proprietary information developed in connection with, or resulting from, the performance of services by the Consultant under this Agreement shall be made to the City, and that the Consultant shall do all things necessary and proper to perfect and maintain ownership of such proprietary information by the City. The Consultant hereby agrees to deliver such proprietary information to the City upon the expiration or termination of this Agreement. It is understood and agreed that the proprietary information prepared pursuant to this Agreement is prepared specifically for the City and is not necessarily suitable for any future or other use. The Parties agree that, until final approval by the City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law.

3.5 Patented and Copyright Materials. The Consultant shall assume all costs arising from the use of patented or copyrighted materials, including but not limited to equipment, devices, processes, and software programs, used or incorporated in the services or work performed by the Consultant under this Agreement. Pursuant to Section 3.7 herein, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold the City and its elected and Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

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appointed boards, members, officials, officers, agents, representatives, employees, and volunteers (“City Personnel”) harmless from any and all suits, actions, or proceedings of every nature for or on account of the use of any patented or copyrighted materials.

3.6 Prevailing Wages. The Parties have determined that prevailing wage laws do not apply to this Agreement because the Consultant Services do not include construction, alteration, demolition, installation, or repair work or other otherwise exempt under California’s prevailing wage laws (Lab. Code, § 1720 et seq.). Notwithstanding the foregoing, it is agreed by the Parties that, in connection with performance of the Consultant Services, including, without limitation, any and all public works (as defined by applicable law), the Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Pursuant to Section 3.7 herein, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold the City and City Personnel harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by the Consultant or any party performing the Consultant Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by the Consultant or any party performing the Consultant Services on the Consultant’s behalf to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law.

3.7 Indemnification.

3.7.1 Indemnification of the City. Except as set forth in subdivision 3.7.2, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold harmless the City and City Personnel from and against any and all actions, suits, claims, demands, judgments, attorneys fees, costs, damages to persons or property, losses penalties, obligations, expenses, or liabilities (“Claims”) that may be asserted or claimed by any person or entity arising out of the Consultant’s performance of any tasks or services for or on behalf of the City, whether or not there is concurrent active or passive negligence on the part of the City and/or any City Personnel, but excluding any Claims arising from the sole negligence or willful misconduct of the City or any City Personnel. The Consultant shall defend any action or actions filed in connection with any such claims or liabilities, and shall pay all costs and expenses, including attorney’s fees incurred in connection therewith. The Consultant shall promptly pay any judgment rendered against the City or any City Personnel for any such claims or liabilities. In the event the City and/or any City Personnel is made a party to any action or proceeding filed or prosecuted for any such Claims arising out of or in connection with the work being performed or services being provided under this Agreement, the Consultant shall pay to the City any and all costs and expenses incurred by the City or City Personnel in such action or proceeding, together with reasonable attorney’s fees and expert witness fees.

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3.7.2 Design Professionals. The provisions of this subdivision 3.7.2 apply only in the event that the Consultant is a “design professional” within the meaning of the California Civil Code Section 2782.8(c). If the Consultant is a “design professional” within the meaning of Section 2782.8(c), then notwithstanding subdivision 3.7.1 above, to the fullest extent permitted by law (including, without limitation, Civil Code Sections 2782 and 2782.6), the Consultant shall defend (with legal counsel reasonably acceptable to the City), indemnify, and hold harmless the City and City Personnel from and against any Claim that arises out of, pertains to, or relates to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of the Consultant, any sub-consultant, sub-consultant , or any other person directly or indirectly employed by them, or any person that any of them control, arising out of the Consultant’s performance of any task or service for or on behalf of the City under this Agreement. Such obligations to defend, hold harmless, and indemnify the City or any City Personnel, shall not apply to the extent that such Claims are caused in part by the sole negligence or willful misconduct of the City or such City Personnel. The Consultant’s cost to defend the City and/or City Personnel against any such Claim shall not exceed the Consultant’s proportionate percentage of fault with respect to that Claim; however, pursuant to Civil Code section 2782.8(a), in the event that one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the Consultant shall meet and confer with the City (and, if applicable, other parties) regarding any unpaid defense costs. To the extent the Consultant has a duty to indemnify the City or any City Personnel under this subdivision (b), the Consultant shall be responsible for all incidental and consequential damages resulting directly or indirectly, in whole or in part, from the Consultant’s negligence, recklessness, or willful misconduct.

3.8 Retention of Funds. The Consultant hereby authorizes the City to deduct from any amount payable to the Consultant (whether arising out of this Agreement or otherwise) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate the City for any losses, costs, liabilities, or damages suffered by the City, and all amounts for which the City may be liable to third parties, by reason of the Consultant's negligent acts, errors, or omissions, or willful misconduct, in performing or failing to perform the Consultant's obligations under this Agreement. The City in its sole and absolute discretion, may withhold from any payment due to the Consultant, without liability for interest, an amount sufficient to cover such claim. The failure of the City to exercise such right to deduct or withhold shall not act as a waiver of the Consultant's obligation to pay the City any sums the Consultant owes the City.

3.9 Insurance. The Consultant shall not commence the performance of any work or services under this Agreement until the Consultant has obtained all insurance required hereunder, nor shall the Consultant allow any sub-consultant or sub-consultant to commence services until all such insurance has been obtained by the sub-consultant or sub-consultant .

Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. All insurance policies shall be issued by an insurance company currently authorized by the California Department of Insurance to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

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City’s Risk Manager. The Consultant shall take out and maintain at all times during the performance of this Agreement the following policies of insurance:

3.9.1 Workers Compensation Insurance to cover the Consultant’s employees as required by law; and the Consultant shall require all sub-consultant s to provide such compensation insurance for all of the latter’s employees. Each such policy of worker compensation insurance shall carry the following endorsements:
(a) “The insurer waives all rights of subrogation against THE CITY OF LA PALMA, its officers, officials, agents, employees, and representatives.”
(b) “This insurance policy shall not be canceled, limited or nonrenewed by the insurer until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.”

3.9.2 Comprehensive General Liability Insurance for bodily injury, death, and property damage which may arise from the negligent performance of the Consultant, its employees, agents representatives, successors, and assigns while performing work or services under this Agreement, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate. Each such policy of insurance shall be in a form satisfactory to the City and shall contain the following endorsements:
(a) “THE CITY OF LA PALMA, its officers, officials,
employees, and representatives, are hereby declared to be additional insureds under the terms of this policy with respect to the operations and activities of the named insured at or from the premises of THE CITY OF LA PALMA described above.” (b) “This insurance policy shall not be canceled, limited, or not renewed until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.” (c) “This insurance policy is primary insurance and no insurance held or owned by the designated additional insureds shall be called upon or looked to cover a loss under said policy; THE CITY OF LA PALMA shall not be liable for the payment of premiums or assessments on this policy.”

3.9.3 Comprehensive Automobile Liability Insurance, including owned, non-owned, and hired automobiles, in a minimum Combined Single Limit of $1,000,000 per occurrence for bodily injury, death, and property damage. Each such policy of insurance shall be in a form satisfactory to the City and shall contain the following endorsements:
(a) “THE CITY OF LA PALMA, its officers, officials,
employees, and representatives, are hereby declared to be additional insureds under the terms of this policy with respect to the operations and activities of the named insured at or from the premises of THE CITY OF LA PALMA described above.” Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

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(b) “This insurance policy shall not be canceled, limited, or not renewed until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.” (c) “This insurance policy is primary insurance and no insurance held or owned by the designated additional insureds shall be called upon or looked to cover a loss under said policy; THE CITY OF LA PALMA shall not be liable for the payment of premiums or assessments on this policy.”

3.9.4 Professional Liability Insurance to protect the City from the Consultant’s negligent acts, errors, and omissions of a professional nature, with coverage in a minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and the Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

3.9.5 Renewal of Insurance. At least thirty (30) days prior to the expiration of any policy of insurance required under Paragraph 3.9.1, 3.9.2, 3.9.3 or 3.9.4, a signed complete certificate of insurance, with all endorsements provided herein, showing that such insurance coverage has been renewed or extended, shall be filed with the City.

3.9.6 Prohibited Insurance Provisions. Insurance policies required under Paragraph 3.9.1, 3.9.2, 3.9.3 or 3.9.4, shall not include any limiting provision or endorsement that has not been submitted to the City for approval. By way of example, additional insured endorsements shall not be limited to “ongoing operations,” exclude contractual liability, restrict coverage to the “sole” liability of the Consultant, or contain any other limitation contrary to this Agreement.

3.9.7 Variations to Insurance Requirements. The City may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that the City’s interests are otherwise fully protected.

3.10 Conflicts of Interest.

3.10.1 City Personnel. No City Personnel shall have any financial interest, direct or indirect, in this Agreement, or participate in any decision relating to this Agreement that affects his or her financial interest or the financial interest of any corporation, partnership, association or other entity in which he or she is interested, in violation of any federal, state or city statute, ordinance or regulation. The Consultant shall not employ any such person while this Agreement is in effect.

3.10.2 Consultant. The Consultant represents, warrants and covenants that he, she or it presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of the Consultant’s obligations and responsibilities under this Agreement. The Consultant further agrees that while this Agreement is in effect, the Consultant shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

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performance of the Consultant’s obligations and responsibilities under this Agreement.

The Consultant acknowledges that pursuant to the provisions of the Political Reform Act (Government Code section 87100 et seq.), the City may determine the Consultant to be a “consultant” as that term is defined by the Act. In the event the City makes such a determination, the Consultant agrees to complete and file a “Statement of Economic Interest” with the City Clerk to disclose such financial interests as required by the City. In such event, the Consultant further agrees to require any other person doing work under this Agreement to complete and file a “Statement of Economic Interest” to disclose such other person’s financial interests as required by the City.

3.11 No Undue Influence. The Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City shall receive compensation, directly or indirectly, from the Consultant, or from any officer, employee, or agent of the Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. The Consultant further warrants that it has not employed or retained any company or person other than a bona fide employee working for the Consultant, to solicit or secure this Agreement and that it has not paid or agreed to pay any company or person any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

3.12 No Benefit to Arise to City Employees. No member, officer, or employee of the City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Consultant Services to be performed under this Agreement.

4. RIGHTS AND REMEDIES

4.1 Termination By the City. The City reserves and has the right and privileges, at its sole discretion and with or without cause at any time during the term of this Agreement, of suspending, canceling or terminating this Agreement or any work in connection with this Agreement with or without any breach or failure to perform of the Consultant. Upon receipt of any notice of termination from the City, the Consultant shall immediately cease all services hereunder except such as may be specifically approved in writing by the Contract Administrator.

In the event of termination under this Section 4.1, all finished or unfinished data, studies, maps, reports, and other items prepared by the Consultant shall become the property of the City, and the Consultant shall promptly deliver such items to the City. In the event of termination under this Section 4.1, the City shall pay the Consultant for all authorized services performed and for all authorized and invoiced expenses incurred up to the date of termination of this Agreement, on a time and materials basis in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B”.

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4.2 Performance to the City’s Satisfaction. The Consultant agrees to perform all work to the reasonable satisfaction of the City. If the services performed under this Agreement are not satisfactory, the City has the right to take appropriate action, including but not limited to:
(i) meeting with the Consultant, its agents or sub-consultant s to review the quality of the work and resolve matters of concern; (ii) requiring the Consultant to have the work repeated at no additional fee until it is satisfactory; (iii) withholding payment of the City’s compensation to the Consultant for any unsatisfactory work performed; (iv) suspending delivery of work to the Consultant for an indefinite time; and/or (v) terminating this Agreement.

4.3 Default, Remedies.

4.3.1 Default of Insurance Requirements. In addition to any other remedies at law or equity the City may have if the Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time required by Section 3.9 herein, the City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies the City may have and are not the exclusive remedy for the Consultant’s breach:
(a) Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; (b) Order the Consultant to stop work under this Agreement or withhold any payment that becomes due to the Consultant hereunder, or both, until the Consultant demonstrates compliance with the insurance requirements herein; and/or
(c) Immediately terminate this Agreement.

4.3.2 Other Defaults. In addition to any other remedies at law or equity the City may have, if the Consultant materially breaches any of the terms of this Agreement, the City's remedies shall include, but not be limited to, any or all of the following:
(a) Immediately terminate this Agreement; and/or
(b) Take over the work and prosecute the same to completion by contract with another consultant or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder, including costs incurred by the City in retaining a replacement consultant and similar expenses, exceeds the Budget contained in Exhibit “B”.

4.4 Force Majeure. Any time period specified in this Agreement for performance of services shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the City or the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the delaying Party shall within ten (10) days of the commencement of such delay notify the other Party in writing of the causes of the delay Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

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(“Force Majeure Event”). If the Consultant is the delaying Party, the City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the City such delay is justified. The City’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall the Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused. The Consultant’s sole remedy shall be extension of this Agreement pursuant to this section. For the avoidance of doubt, Force Majeure shall not include (a) financial distress nor the inability of either party to make a profit or avoid a financial loss, (b) changes in the market prices or conditions, or (c) a party’s financial inability to perform its obligations hereunder. The current events related to the COVID-19 pandemic are known and shall not constitute Force Majeure Event, future impacts of the COVID-19 pandemic may be considered a Force Majeure Event to the extent that they prevent the performance of a Party's obligations under this Agreement.

5. MISCELLANEOUS

5.1 Notices. All notices, invoices or other instruments required or permitted to be given under this Agreement shall be served by personal delivery or deposited in a United States mail depository, postage prepaid, and addressed as follows:

If to the City: CITY OF LA PALMA
7822 Walker St.

La Palma, CA 90623
Attn: La Palma Mosaic Editor
If to the Consultant: THE DOT PRINTER, INC.
2424 McGaw Ave.

Irvine, CA 92614
Phone: 714-708-5815
or such other address or person as either Party may indicate to the other in writing. Service of any instrument by mail shall be deemed effective forty-eight (48) hours after deposit in a United States mail depository, postage prepaid, and addressed as set forth above.

5.2 Integration. This Agreement represents the entire understanding of the City and the Consultant as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with regard to those matters covered by this Agreement. This Agreement may not be modified, altered, or amended except in writing signed by both the City and the Consultant. The Contract Administrator is hereby authorized to approve and effectuate amendments to this Agreement to the extent permitted by applicable law.

5.3 Construction, Venue. This Agreement shall be construed in accordance with the laws of the State of California and as if drafted by both parties hereto. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted and maintained in the Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

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Superior Courts of the State of California in the County of Orange, or in any other appropriate court with jurisdiction in such County, and the Consultant agrees to submit to the personal jurisdiction of such court.

5.4 Rights and Remedies are Cumulative. Except as may be expressly set forth in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies or other rights or remedies as may be permitted by law or in equity shall not preclude the exercise by such Party, at the same or different times, of any other rights or remedies to which such Party may be entitled.

5.5 Severability. If any term or provision of this Agreement is found by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction, the invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable term or provision in any other jurisdiction. Upon a determination that any term or provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

5.6 Assignment. The Consultant shall not assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the City; and any such assignment or other transfer without such consent shall be void.

5.7 Consultant not a City Agent. Except as the City may specify in writing, the Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. This Agreement does not grant to the Consultant any authority, express or implied, to bind the City to any obligation whatsoever.

5.8 Attorney’s Fees. In the event any action is commenced by one Party to this Agreement against the other to enforce any of the rights or obligations arising from this Agreement, the prevailing Party in such action, in addition to any other relief and recovery ordered by the court, shall be entitled to recover all statutory costs, together with reasonable attorney’s fees.

5.9 Successors and Assigns. Subject to the provisions of Paragraphs 1.9 and

5.6 hereinabove, this Agreement, and all of the covenants, terms, and conditions hereof, shall be binding upon, and inure to the benefit of, the City, the Consultant, and their respective successors and assigns.

5.10 Authority of Signatories. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.

5.11 No Waiver. No waiver by either Party of any of the provisions of this Agreement shall be effective unless explicitly set forth in writing and signed by the Party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

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or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

5.12 No Third-Party Beneficiaries. This Agreement benefits solely the Parties to this Agreement and their respective permitted successors and assigns and nothing in this Agreement, express or implied, confers on any other person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

5.13 Non-Liability of City Personnel. No City Personnel shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City, or for any amount which may become due to the Consultant or its successor, or for breach of any obligation of the terms of this Agreement.

5.14 Execution. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Parties.

5.15 Survival. The terms, provisions, representations and certification contained in this Agreement, or inferable therefrom, shall survive the termination of this Agreement and the payment of the compensation hereinabove provided.

5.16 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

5.17 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

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IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

CITY OF LA PALMA
By:

Mike Egan
Interim City Manager
ATTEST:

Kimberly Kenney, CMC
City Clerk

CONSULTANT
By:

Clint Nagasugi
President
APPROVED AS TO FORM:

COLANTUONO, HIGHSMITH & WHATLEY, PC
By:

City Attorney, City of La Palma
Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

2905/001784-0004
17755573.6 a04/21/25

EXHIBIT A
-1-

EXHIBIT A
Scope of Work
The Consultant shall be responsible for providing appropriate services to print the publication, prepare the publication for bulk mail, and deliver the publication to the United States Postal Service office in Buena Park, California, and subsequently deliver the publication to the City of La Palma, per the project requirements. Each issue shall be mailed to all residential and commercial business addresses within the City of La Palma.

Unless otherwise stated, the following tasks and specifications shall apply to all four quarterly editions (fall, winter, spring and summer) of the Mosaic, the City of La Palma’s official quarterly brochure and recreation guide.

1. Collection & Storage of Magazine Copy, Content & Images The City’s Contract Administrator, and/or designated City staff member, will upload clean written copy and images to a shared drive (to be maintained by the Consultant) by a Citydesignated deadline. Consultant will retrieve the clean copy and images from the shared drive following the City-designated deadline.

2. Graphic Design of Mosaic
Within an 8.5 x 11” dimension, Consultant will arrange the aforementioned clean copy and images in City-designated sections and in a visually aesthetic manor that will vary in arrangement between editions. Consultant will deliver a finalized digital draft of the Mosaic to the designated City staff member for final changes, if any, and approval for printing and final digital copy.

3. Mosaic Magazine Specification — Printed Version (specifications may vary at the discretion of the City’s Contract Administrator)
• Total Pages (may vary): 24 PGS plus cover (28 pages total) • Cover: 80# white gloss cover
• Book Pages: 70# white gloss text
• Final Time Size: 8.5 x 11”
• Total Finished Quantity (may vary): approximately 6,200

4. Delivery and Postage
The City will provide Consultant with the bulk mail Presorted Standard Postage permit. The selected Consultant will print this on the back of the Mosaic and the U.S. Postal Service will distribute. The Consultant will manage the Extended Carrier Route Walking Sequence Saturation (ECRWSS) or Every Door Direct Mail (EDDM) with facing slips using the City’s postal Permit Number, for each seasonal issue and ensure correct quantity, delivery, and postage. Approximately 6,000 copies of Mosaic will be delivered to the U.S. Postal Service for mailing with each seasonal issue. Of these, approximately 400 will be sent to a mailing list provided by the City. Additional printed copies will be delivered by the Consultant to the La Palma Civic Center (7822 Walker St., La Palma, CA 90623) as directed by the City’s Contract Administrator.

Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

2905/001784-0004
17755573.6 a04/21/25

EXHIBIT A
-2-

5. Mosaic Magazine Specification — Digital Version
Consultant shall also furnish a high-resolution digital version of the Mosaic magazine in a .PDF format. The Consultant shall deliver this finalized digital version of the Mosaic to the City’s Contract Administrator following the finalization of the Mosaic. The digital version of the mosaic will be posted on the City’s website by City’s Contract Administrator.

Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

2905/001784-0004
17755573.6 a04/21/25

EXHIBIT B
-1-

EXHIBIT B
Budget and Fee Schedule
Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

2905
/001784-0004
17755573.6 a04/21/25
EXHIBIT B -2-
Docusign Envelope ID: 680D5BD2-5074-4F79-B500-29F8478B33F0

City of La Palma
City of La Palma
7822 Walker Street
La Palma, CA 90623
Attn: Alan Rivera, Management Assistant
Re: Proposal Submission – Print Publications 2025 RFP
03/23/2025 11:59 PM (PDT)
Cover Letter
Dear Mr. Rivera,
The Dot Corp is pleased to submit our proposal in response to the City of La Palma’s Request for Proposals for Print Publications (2025). With over 45 years of experience delivering high-quality printing, mailing, and fulfillment services across California, our team is well-positioned to support the production of La Palma’s Mosaic magazine through innovative, reliable, and cost-efficient solutions.

As a full-service print and logistics provider, The Dot Corp specializes in servicing municipal agencies with a deep understanding of public-sector needs, timelines, and compliance. We have extensive experience working with city departments, including prior engagements involving magazine design, print production, and managed distribution using presorted standard postal permits. Our company is FDA Registered, FSC Certified, and HiTrust Certified, ensuring the highest level of quality and data integrity in every project.

Our approach emphasizes collaboration, transparency, and efficiency. We will work closely with City staff to ensure content collection, layout, design approvals, print production, and final delivery meet your exact expectations. We take pride in providing consistent and dependable service, with a dedicated project manager and in-house team overseeing every stage of execution.

This proposal is valid for 90 days from the date of submission and has been signed by an official authorized to bind The Dot Printer, Inc. contractually.

Thank you for the opportunity to submit our qualifications. We look forward to the possibility of serving the City of La Palma.
1 Sincerely,
Eriq Zazueta
Business Development Representative/Dot Direct

Key Project Staff and Qualifications
President/Dot Direct: Clint Nagasugi, 43+ years of experience, Bachelor Science in Business Administration.

Account Manager: Michael Whisner, 27+ years, Business/Liberal Arts.

Production Manager: Abby Jordan, 10+ years of experience.

Data Processing Manager: Dave Holt, 38+ years, BA Computer Science.

Chief Technology Officer: Dave Brown, 25+ years of experience, Quantitative Data Systems.

Business Development Representative: Eriq Zazueta, 8+ years, Business Market & Management. 2 Sincerely,
Eriq Zazueta
Business Development Representative/Dot Direct

Client References and Work Product Samples
Department of Consumer Affairs, Board of Psychology (PSYCH) Address: 1625 N. Market Blvd., Suite S-103
Contact: Mai Xiong
Email: [email protected]
Number: 916-574-8954
California Department of Forestry & Fire Protection (CAL FIRE) Address: 715 P Street, Sacramento, CA 94244
Contact: Shawn Headley
Email: [email protected]
Number: 707-608-8017
San Jose/ Parks, Recreation & Neighborhood Services
Address: 200 East Santa Clara Street 9th Fl San Jose, CA, 95113 Contact: Dylan Kuhlmann-Haley
Email: [email protected]
Number: 408-460-4468
3 Sincerely,
Eriq Zazueta
Business Development Representative/Dot Direct

Request for Proposals
City of La Palma
P a g e 6 | 11
D. Project Budget Estimate and Fee Schedule
Project budget estimatesshould include all labor, equipment and material costs associated with fulfilling the scope of work. Project budget estimatesshould be formatted and submitted as follows:

Graphic Design Costs – Mosaic
(See Scope of Work)
Mosaic Issue
(28 pages, including cover pages)
Cost Per Page
(Ex: $X per page)
Total Price
Graphic Design Pages (includes, but not
limited to, placement, design, content,
collaboration with City Staff, etc.)
Tax (8.75%)
Per Issue Total
Print Costs – Mosaic
(See Scope of Work)
Mosaic Issue
(28 pages, including cover pages)
Quantity
(Varies)
Per Issue
(Unit Cost)
Total Price
Fall 6,000
Winter 6,000
Spring 6,000
Summer + Recreation Insert (4 pages) 6,300
Tax (8.75%)
Annual Total
Mail Costs – Mosaic
(See Scope of Work)
Mosaic Issue
(28 pages, including cover pages)
Quantity
(Varies)
Cost Per Issue (Unit Cost)
Includes mail preparation services,
delivery to post office, etc.

Total Cost
Fall 6,000
Winter 6,000
Spring 6,000
Summer + Recreation Insert (4 pages) 6,300
Tax (8.75%)
Annual Total
$960.00
$960.00
$960.00
$1,008.00
$3,888.00
$0.00
$5,280.00
$5,280.00
$5,280.00
$5,544.00
$1,871.10
$23,255.10
$0.88
$0.88
$0.88
$0.88
$42.00 $1,176.00
$0.16
$0.16
$0.16
$0.16
$102.90
$1,278.90

Request for Proposals
City of La Palma
P a g e 7 | 11
Various City Mailers – Production, Print, & Mail
(Standard Size: 5.5” x 8.5” Postcard)
Items Quantity Per (unit cost) Total Price
Size: 5.5” x 8.5” (standard size)
6,300
Paper: 14 pt. Glossy Cardstock
6,300
Colors: 4/4 – Color Both Sides
6,300
Shrink Wrapping Fee
Mail Preparation Services Fee
Post Office Delivery Fee
Tax (8.75%)
Total (per mailer)
$0.26 $1,608.61
$140.76
$1,749.37
See total below
See total below
See total below
See total below

Exceptions
There are no exceptions on this project.

Sincerely,
Eriq Zazueta
Business Development Representative/Dot Direct
4

The Dot Printer, Inc.
2424 McGaw Avenue, Irvine, CA 92614, United States
SCS Global Services does hereby certify that an independent audit has been completed and conformity to the applicable standard(s) has been confirmed for:

This certificate itself does not constitute evidence that a particular product supplied by the certificate holder is FSC-certified (or FSC Controlled Wood where applicable). Products offered, shipped or sold by the certificate holder can only be considered covered by the scope of this certificate when the required FSC claim is clearly stated on sales and delivery documents. The scope of this certificate is considered accurate on the date of issuance. The current validity and scope, including the full list of products, shall be verified on http://info.fsc.org. The certificate shall remain the property of SCS, and this certificate and all copies or reproductions of this certificate shall be returned to SCS immediately upon request. Where a certificate covers more than one site, the covered products and processes/ activities are performed by the network of Participating Sites, and not necessarily by each of them.

Valid from: 4 August 2022 Expiry date: 3 August 2025
Certificate Code: SCS-COC-001120
Trademark License Code: FSC-C017771
The assessment has been conducted by SCS Global Services in accordance with the protocols of the Forest Stewardship Council® A.C. (FSC®).

This single site certificate covers the production of printed products using the transfer system.

The facility(s) are hereby Chain of Custody certified to sell products as:

FSC Mix, FSC Recycled
FSC Standard: FSC-STD-40-004
SCS Global Services
Maggie Schwartz, Managing Director, Forestry Services
2000 Powell Street, Ste. 600, Emeryville, CA 94608 USA
Printed: 25 Jul, 2022

EQUIPMENT LIST

PRINTING
Litho Press Department
2) 6 Color Komori 28” x 40” with Aqueous Coater
1) 6 Color Komori 20” x 28” with Aqueous Coater
1) 2 Color Ryobi
1) 2 Color Multi
Digital Press Department
1) SCREEN Truepress 520HD+ InkJet Web Press
• 20.5” Wide Web – up to 64,353 8.5”x11” Letters Per Hour 1) Canon iX 3200 InkJet Digital Press
• Min Sheet Size 8”x8” - Max Sheet Size 14”x20” - Max Print Area 13.3”x19.8” 1) Ricoh Pro C9210
• Max Sheet Size 13”x27.5” - Max Print Area 12.7”x27.2” 1) Xerox 1000i Digital Press – Color
• Min Sheet Size 7.2”x7.2” – Max Size Sheet 13”x19.2” – Max Print Area 12.83”x19.05” 1) Xerox Nuvera 144 High Speed Sheet Laser – Monochrome (Black) Only • Min Sheet Size 7”x10” - Max Sheet Size 12.6”x18.5”
1) Troy MICR Laser Printer – Monochrome (Black) MICR Toner • Security Printer for low volume Check Printing. Standard Sizes 8.5”x11” and 8.5”x14” 2) Datacard Plastic Card Thermal Imager
1) Xante Variable Data Press – Color - Small Qty – Forms and Envelopes Fujifilm XMF Workflow - Prepress Software
Fujifilm XMF ColorPath - Color Management System
Workstations:

Mac & PC Workstations, with the latest Adobe Software
Digital Proofing Devices:
1) Epson SureColor 9570 Printer includes X-Rite ILS30EP SpectroProofer, EFI Fiery XF Rip 1) ImpoProof 4100S two sided Printer. Uses two Canon Pro 4100S printers Plate Imaging Devices:
1) Fuji Javelin Luxel T-9000 Platesetter
1) Screen PlateRite 8600 Platesetter

PREPRESS
Bindery / Finishing Department
2) Muller Martini 6 Pocket Saddle Stitchers
with Cover Feeder
3) MBO Folders with 8pg & 16pg
plus gatefold capabilities
1) Heidelberg, 20” x 28” Die Cutter Cylinder
1) Guowang C106Q Die Cutting Machine
1) Moll Quadraplex High Speed Glue-Bind Pocket Folder
5) Computer Programmable Guillotine Paper Cutters
3) Shrink Wrap Stations
1) Drill with 3 hole Calendar and Automotive capabilities 4) Paper Binding Machine & Mylar Binding
1) Round Cornering Cutter
1) Padding Station/Rack
1) GMS Fugitive Gluer Unit
2) MBO Z2 Knife Folders
1) Graphic Whizard UV Coater 29.5 x 25 XCD 750A
Automatic Feed
1) Epic 18” UV Coater

The Food and Drug Administration
Large Format Department
1) EFI Vutek Pro 30h Printer
maximum width 126”
1) EFI Vutek GS2000 80” Printer
maximum width 80”
1) Oki ColorPainter M-64s
1) Seiko ColorPainter M-64s
1) Graphtec FC9000 - Cutting Plotter
1) Esko iCut Layout Workstation
1) Esko Kongsberg iXL-24 with i-Cut/MultiCut:

Automated digital finishing system for signs and displays. 1) Seal 62ProS Laminator
1) GBC 64” Laminator
1) Fiery XF RIP
1) Mitsubishi Twin Needle Sewing Machine
1) Leister Banner Welder

LARGE FORMAT

CERTIFICATES

CSF Certified
Fulfillment Equipment:

We Have Robots - fully integrated robotic Pick-N-Pack system State of the Art Computer Inventory Management System
E-Commerce Interface
Trailer and Container Loadging and Unloading Equipment
Racked and Floor Storage Space
Pick-N-Pak Shelving and Cubbies
Service and Capabilities:

Same Day Fulfillment
Ecom Pick and Pack
Product Fulfillment
Garment Distribution
Medical Device Fulfillment
FDA Class 1 Assembly
Catalog and Premium Fulfillment
Literature and Product Distribution
Onsite Website Design, Creation and Hosting
Custom Packaging and Assembly
Poly Bagging and Shrink Wrap Stations
Technology:

State of the Art Computer Warehouse Management System
Inhouse API Toolset and development
E-Commerce Interface
Custom kitting and medical device workflow applications for MID and Lot tracking Certifications and Regulatory:

FDA Registered Medical Device facility – Class 1
HiTrust certified for Data security and integrity
PCI complaint
Board of Pharmacy Wholesalers license
Major Service Lines:

Medical test kit assembly and distribution (10 production lines) Medical device same day distribution with 3:30 PM PST cut off Critical care / critical notification Direct Mail with 24-72 hour SLAs eCommerce and Retail product fulfillment
Custom kitting and store / multi-site distribution services On site custom package manufacturing

FULFILLMENT

CSF Certified
Data Processing Department
BCC Ignite - Automation Software – List Conversion, CASS, Merge/Purge, Postal Sort and Label Studio.

NCOA – OnDemand Processing, 48 Month
XMPIE VDP Page Creation Software
Pitstop Pre-Processing Software
Solimar Rubika PDF Post-Processing Software
IBM RS6000 P720 UNIX Server, 1.1 TB Disk Storage, 8GB of memory Digital Press Department - Presses listed under PRINTING.

Inkjet Department
1) Kodak Versamark Dual Head 5240 Inkjet
1) MCS Eagle Inkjet with 4 inch head with a Falcon 2 inch highlight color attachment Bindery / Finishing Department
1) Polar Guillotine Cutter
1) Tecnau Pinless Document Cutters with Inline MB Prestige Fold Net 52 Folder 1) Tecnau Pinless Document Cutter with Shuttle Conveyor 1) MBO Pile Feed Folder with Right Angle
1) Horizon ICE Stitchliner Mark IV
2) Plockmatic BM350 Booklet Maker
1) MD Collator/Folder with Camera
1) Sensible Technologies High Speed Multi-Page Collator/Folder 1) GMS MicroGluer for Snap Packs
Tabbing Department
2) Kirk Rudy Tabbers
1) Kirk Rudy Card Tipping System
Inserting Department
1) Epic Ultra High Speed Inserter with Camera Validation System 1) Flowmaster Flex RS High Speed Inserter with Camera Validation System 1) Flowmaster Flex RS High Speed Inserter
1) Bell & Howell Mailstar 1000 Six Station Inserter with Camera Match System Handmailing Department
Custom Assembly
Offline Metering with PB Automated Smart Meter

DIRECT MAIL

FACILITIES:

Over 6.5 million cubic feet of capabilities
IRVINE – McGaw Ave
Printing and Grand Format
IRVINE SPECTRUM – Toledo Way
Direct Mail and Healthcare Supply Chain
SANTA ANA – Pullman Ave
Warehouse and Fulfillment CenterOCT 2023

Business is a juggling act. The act gets more complicated when you’ve got projects and services spread across multiple vendors. At The Dot, our wide range of services allow us to integrate solutions, providing you a one stop shop for all of your marketing, fulfillment and distribution needs. Our experienced sales experts will listen to your challenges, needs and goals, and partner with you to create a streamlined workflow that saves time and money.

Because the way we see it, once you connect, anything is possible.

Our seasoned, knowledgeable and passionate experts have experience across all business channels from concept to execution. Their ability to creatively problem solve has become our corporate hallmark. Connect with your sales rep to start creating customized business solutions that work for you.

Quality
Service
Integrity
Partnering
Open Environment

CORE VALUES

CERTIFICATES
The Food and Drug Administration

PRINTING SERVICES
Sheetfed Offset, Static, Variable and On-Demand Digital Printing, On-Site Custom Ink and Color Correction Solutions, FSC Certified, Master G7 Certified, In-house Graphic Design Team, In-House Bindery and Finishing Services.

T O U R I R V I N E

F A C I L I T Y A T
MC GAW
ONCE YOU CONNECT THE DOTS... ANYTHING IS POSSIBLE.

T O U R S A N T A

ANA FACILITY

AT PULLMAN
ONCE YOU CONNECT THE DOTS... ANYTHING IS POSSIBLE.

FULFILLMENT & DISTRIBUTION
3PL and 3PF warehouse services, Multi Facility distribution, EDI XML and API based workflows, RFID and Barcode creation, Product Scan verification, In-line on demand carton creation, Same day Pick Pack and Ship, Inventory management, Kitting, Store Elevation based distribution, Freight management, Ocean Container Dray and De-Van, On-line Application.

ONCE YOU CONNECT THE DOTS... ANYTHING IS POSSIBLE.

T O U R I R V I N E

F A C I L I T Y A T
TOLEDO

DIRECT MAIL & MARKETING
Dot Direct is a full-service direct mail production facility. Our data service offerings include CASS certification, NCOA, postal qualification, custom data file processing, print file creation for both monochrome and full-color variable personalization, and multi-channel campaign creation. Digital imaging services include full-color digital high-speed inkjet web printing, sheet-fed imaging in both black and full variable color, and two-color spot inkjet with 4” capability. Our bindery service includes cutting, folding, collating/folding, tabbing, and full digital booklet making. Mailing services are performed via high-speed automated inserters. We offer hand mailing services for those projects that require special handling or packaging. Dot Direct is a USPS-authorized “Seamless” provider and for larger projects drop shipment services are available..

ONCE YOU CONNECT THE DOTS... ANYTHING IS POSSIBLE.

LARGE FORMAT GRAPHICS FOR RETAIL,

TRADE SHOW AND OUTDOOR ADVERTISING
Posters, Wall Murals, Window Decals, Retractable Banners, Retail Display Fixtures, Rigid Signage, Duratrans. FSC® products available on request. National Installations.

ONCE YOU CONNECT THE DOTS... ANYTHING IS POSSIBLE.

CREATIVE SERVICES
Every great marketing piece starts with a great design. The Dot creative design team is a vital resource for clients that don’t have their own team or who need help handling creative work overflow.

Our team of experienced graphic designers specialize in brand design, logo creation, typography, copywriting, campaign creation, single piece design and prepress checks. They work seamlessly with all other Dot departments providing a streamlined marketing solution for clients of every size and in every industry.

ONCE YOU CONNECT THE DOTS... ANYTHING IS POSSIBLE.

DIGITAL SOLUTIONS & APPS
At The Dot, we believe the most effective marketing solutions are those that integrate digital and traditional strategies. Our IT department specializes in creating ecommerce stores, internal apps and digital solutions to ensure the effective execution of your print, mail, and fulfillment strategies. From CRM and Data Management, Custom B2B and B2C Ordering Solutions, and print on demand (POD) you’ll be connected from the get-go.

WWW. THEDOTCORP.COM
2424 McGaw Avenue
Irvine, CA 92614
(949) 474-1100
9700 Toledo Way
Irvine, CA 92618
(714) 708-5800
2525 Pullman Avenue
Santa Ana, CA 92705
(949 ) 771-3900

CONNECT WITH US

Agenda Item No. 11 May 6, 2025 | 1
City of La Palma
Agenda Item No. 11
MEETING DATE: May 6, 2025
TO: City Council
FROM: City Manager
SUBMITTED BY: Belinda Deines, Community Development & Public Works Director
AGENDA TITLE: Authorize Second Amendment to Waste Disposal Agreement RECOMMENDED ACTION:

It is recommended that the City Council:

1. Approve the Waste Disposal Agreement one-year extension, including a 2.6% CPI disposal fee increase, through June 30, 2026; and

2. Authorize the Interim City Manager, or designee, to execute the Second Amendment to the Waste Disposal Agreement between the County of Orange and the City of La Palma.

SUMMARY:

Solid waste disposal at Orange County landfills is governed by a Waste Disposal Agreement (WDA) under which cities/sanitary districts agree to exclusively deposit certain waste at the County of Orange’s landfills in exchange for low and stable disposal rates. The current WDA was entered into in 2009 and subsequently amended to extend the term through June 30, 2025. The Orange County City Managers Association (OCCMA) is currently negotiating a successor agreement to the WDA with OC Waste & Recycling (OCW&R). Additional time is needed to finalize mutually agreeable terms and disposal fees. The proposed amendment extends the current WDA by one year to allow for continued negotiations and includes a 2.6% disposal fee increase, per the escalation formula in the current WDA.

DISCUSSION:

The current Waste Disposal Agreement (WDA) between all Orange County cities/sanitary districts and the County of Orange expires on June 30, 2025. In January 2022, OCW&R notified cities of its intent to revise the WDA to align with legislative requirements such as Senate Bill 1383, which requires local governments to divert organic waste, such as food scraps and landscaping waste, away from landfills. OCW&R presented a proposed successor agreement to the WDA, titled the Waste Infrastructure System Enhancement (WISE) agreement, at an Orange County City Manager’s summit on November 7, 2024.

Agenda Item No. 11 May 6, 2025 | 2
The WISE agreement proposed increasing the landfill disposal rate from $42.65 to $82 per ton (a

92.3% increase). It also proposed a rebate program for composted organic waste and an allocation of capital expenditures for organics recycling infrastructure at County landfills.

The Orange County City Managers Association (OCCMA) formed a committee in December 2024 to negotiate a successor agreement to the WDA and requested an extension of the current WDA to allow time for such negotiations.

OCW&R has agreed to the OCCMA committee’s requested extension under the terms of the proposed amendment (Attachment 1), which generally provides for a 12-month extension of the current WDA and a 2.6% disposal fee increase, per the escalation formula in the current WDA. The extension period will allow stakeholders to conduct due diligence on a successor agreement to the WDA as well as evaluate costs, infrastructure plans, and future fee adjustments. If the OCCMA committee and OCW&R do not reach mutually agreeable terms by September 30, 2025, monthly updates will be provided to all cities/sanitary districts beginning in October 2025.

The City finds that executing the Second Amendment is in the public interest since it will ensure stable disposal rates and collaboration between all cities/sanitary districts in Orange County for an additional year.

FISCAL IMPACT:

In accordance with the existing agreement with EDCO, these County-imposed disposal rate increases are a pass-through cost. The franchised City hauler, EDCO, bears the responsibility to cover any County disposal rate increases. The WDA extension has no General Fund fiscal impact.

NOTIFICATION:

County of Orange
Orange County City Managers Association
ATTACHMENTS:

1. Proposed Second Amendment to WDA

SECOND AMENDMENT TO WASTE DISPOSAL AGREEMENT
Between

THE COUNTY OF ORANGE, CALIFORNIA
and the

CITY OF LA PALMA
June 30, 2025
County Amendment Authorization Date
_________________, 2025
County Notice Address:

Director, OC Waste & Recycling
601 N. Ross Street
5 th Floor
Santa Ana, CA 92701
City Amendment Authorization Date
____________________, 2025
City Notice Address:

City of La Palma
Attn: Belinda Deines
7822 Walker Street
La Palma, CA 90623

SECOND AMENDMENT TO WASTE DISPOSAL AGREEMENT
THIS SECOND AMENDMENT TO THE WASTE DISPOSAL AGREEMENT (“Second Amendment”) is made and dated as of the date indicated on the cover page hereof between the County of Orange, a political subdivision of the State of California (the “County”), and the City (general law, charter or other), Special District or Sanitary District designated on the cover page of this Agreement and party to this Agreement.(the “City”).

RECITALS
The County owns, manages, and operates a Waste Infrastructure System to manage municipal and solid waste generated within Orange County, California or imported from outside Orange County, California pursuant to contractual agreements (hereafter used referred to as “Disposal System” or “Waste Infrastructure System”). The Waste Infrastructure System collectively includes active Class III sanitary landfills (“County Landfills”), resource recovery, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County.

The County is also responsible for the long-term management of 20 closed landfills as required under Applicable Law.

County Landfills are used for the management of municipal solid waste pursuant to legislation including, but not limited to, the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code) (the “Act”) and the Short-lived Climate Pollutants Reduction Act (“SB 1383”). County Landfills are also subject to other state and federal regulations designed to ensure that landfill operations minimize the impacts to public health and safety and the environment.

The City, in the exercise of its police power, its powers under the Act, and other Applicable Law, has entered into a franchise or other agreement with or issued permits or licenses to one or more private haulers for the collection, recycling, diversion, and disposal of municipal solid waste generated within the City.

The City and the County have historically provided for the management of municipal solid waste through Waste Disposal Agreements (“WDAs”), wherein the County agreed to provide disposal capacity for waste generated in the City, and the City agreed to deliver or cause the delivery of waste generated in the City to the Disposal System, as more specifically set forth in, and subject to the terms and conditions of the WDAs. In 2009, the Parties entered into a new WDA (referred to as the “Original WDA”). In 2016, the Original WDA was amended by the Parties (“First Amendment”), whereby the Parties updated certain terms and extended the term through June 30, 2025. (The Original WDA and its corresponding First Amendment are referred to in this Second Amendment as the “Current WDA”.) In response to passage of several pieces of legislation that require significant reductions in the disposal of organic waste, and in light of the approaching expiration of the Current WDA, the County held two City Manager Summits in November 2024 proposing terms of a new WDA.

The Orange County City Manager Association (“OCCMA”) has established a Committee (“OCCMA Committee”) including representatives of cities and sanitary districts to review the terms of the proposed new WDA. The OCCMA Committee requested a 12-month extension of the Current WDA to allow for additional time to negotiate mutually agreeable terms for a new WDA, and obtain approval from the respective

governing bodies. The County is agreeable to OCCMA’s requested extension to the Current WDA on terms as provided in this Second Amendment.

The City has determined that the execution of this Second Amendment by the City is in the best interest of the City and will serve the public health, safety, and welfare by continuing the waste disposal services historically provided under the Current WDA while the Parties: (1) engage in due diligence related to a new WDA, in order for the City to evaluate the cost/benefit of a new WDA, which is expected to include the City and OCCMA obtaining more comprehensive and detailed information on the County’s plans for infrastructure expansion and improvements, the financial and operational conditions of the existing Waste Infrastructure System, and the components, timing, and procedures for future contract fee increases; and, (2) negotiate the terms and conditions of a new WDA.

The County has determined that the execution by the County of this Second Amendment will serve the public health, safety, and welfare by continuing to provide a stable, predictable, and reliable supply of municipal solid waste and the resulting service payment revenue to the Disposal System, while the Parties exchange information and conduct negotiations with the County goal of ensuring that any negotiated Contract Rate in the new WDA covers the full cost of operations and infrastructure O&M and development needed to ensure indemnification and regulatory compliance..

Official action approving this Second Amendment and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the City on the City authorization date indicated on the cover page hereof.

Official action approving this Second Amendment and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the County on the County authorization date indicated on the cover page hereof.

It is, therefore, agreed as follows:

1. Extended Term.
(a) Section 6.1 (A) of the Current WDA is deleted in its entirety and replaced with the following:
“Extended Term. This Agreement shall continue in full force and effect until 11:59 p.m. on June 30, 2026 (the “Extended Term”), unless earlier terminated in accordance with its terms, in which event the Extended Term shall be deemed to have expired as of the date of such termination.” (b) Section 6.1 (B) is deleted in its entirety.
(c) Section 6.1 (C) of the Current WDA is deleted in its entirety and replaced with the following:
“Contract Rate Negotiations During Extended Term. If the Orange County City Manager Association’s committee tasked with negotiating the terms of a successor to this Agreement with the County and recommending approval of the same to the Parties (the “Committee”) and the County have not reached mutually agreeable terms of a successor to this Agreement including, but not limited to, proposed revisions to the Contract Rate, by September 30, 2025, the County shall, and it is expected that the Committee will provide, updates to all Participating Cities, and their respective governing bodies as may be deemed necessary, regarding the status of negotiations on a monthly basis until mutually agreeable terms are reached or the Extended Term expires.”

In recommending any revisions to the Contract Rate, in addition to the circumstances described in Section 4.2(A), the Committee and County may take into consideration factors including, but not limited to, the following:
(i) actual cost of operations;
(ii) population growth;
(iii) increase or decrease in available tonnage;
(iv) economic and disposal market conditions in the Southern California region; (v) changes in transportation and technology;
(vi) changes in transportation costs;
(vii) closure and expansion of nearby landfills;
(viii) capacity of the Disposal System;
(ix) long-term infrastructure needs; and
(x) available reserves which are in excess of the amount reasonably required as reserves. (d) Appendix 2 of the Current WDA is deleted in its entirety and replaced with the following:

APPENDIX 2
Cumulative County Acceptable Waste Tonnage Target to be Used for Purposes of Section 4.2(B) Fiscal Year County Acceptable Waste Tonnage Cumulative County Acceptable Waste Tonnage FY 2025-26 3,166,659 3,166,659

2. Contract Rate.
(a) The first paragraph of Section 4.2(A) of the Current WDA is deleted in its entirety and replaced with the following:
“(A) Establishment of Contract Rate. During the Extended Term, the Contract Rate payable by each Franchise Hauler shall be $43.76 per ton, contingent on the delivery to the Disposal System of an amount of Acceptable Waste at least equal to the Cumulative Tonnage Targets identified in Appendix 2, and subject to adjustment necessary to reflect the circumstances set forth in this Section 4.2, subjections (i) through (z).”
Note: Subsections (i) through (z) found in the Current WDA remain unchanged.

3. Effectiveness of Second Amendment.

The provisions of this Second Amendment shall not become effective unless and until this Second Amendment has been executed by the County and all of the Participating Cities, and shall become effective once that occurs.

4. Representations and Warranties of the Parties.

Each of the parties to this Second Amendment represent and warrant that it is a political subdivision of the State of California validly existing under the Constitution and laws of the State and that it has duly authorized the execution and delivery of this Second Amendment to each other party.

5. Remaining Terms.

All other terms and conditions of the Current WDA not specifically changed by this Second Amendment, shall remain in full force and effect.

IN WITNESS WHEREOF, COUNTY and CITY have caused this Second Amendment to be executed by their duly authorized officers or representatives as of the day and year first above written.

County of Orange
By _______________________________
Director, OC Waste & Recycling
Date _____________________
Approved as to Form
By _______________________________
County Counsel
Date _____________________
City of La Palma
By _______________________________
Michael Egan, Interim City Manager
Date _____________________
Approved as to Form
By _______________________________
Ajit Thind, City Attorney
Date _____________________

Agenda Item No. 12 May 6, 2025 | 1
City of La Palma
Agenda Item No. 12
MEETING DATE: May 6, 2025
TO: City Council
FROM: City Manager
SUBMITTED BY: Belinda Deines, Community Development & Public Works Director Douglas Benash, City Engineer
AGENDA TITLE: Adopt a Resolution Identifying the Road Repair and Accountability Act List (SB 1) of Projects for Fiscal Year 2025-26
RECOMMENDED ACTION:

It is recommended that the City Council adopt a resolution to identify a list of projects to be funded by Senate Bill 1 (SB 1), The Road Repair and Accountability Act, for Fiscal Year 2025-26.

SUMMARY:

On April 28, 2017, the Governor signed Senate Bill (SB) 1, known as the Road Repair and Accountability Act of 2017 to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system. SB 1 increased per gallon fuel excise taxes; increased diesel fuel sales taxes, vehicle registration fees, and provides for inflationary adjustments to tax rates in future years. SB 1 emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. As such, the City must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1 by resolution, which must include a description and location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. Cities and counties receiving RMRA funds must also adopt a list of all projects proposed to receive funding, including a description and location of the proposed projects.

In prior years, the City of La Palma (City) allocated funding to ensure its residential and arterial streets were maintained to the highest standards. This resulted in the City receiving an excellent Pavement Condition Index rating of 90+ seven (7) years ago. Currently, the City’s PCI for both residential and arterial roadways is 85+ due to a 1 point plus or minus of annual degradation each year of the pavement surface. As such, the law provides that the City may spend its apportionment of funds on transportation priorities other than the primary priorities outlined in the law if the City’s average Pavement Condition Index (PCI) meets or exceeds 80. The Public Works Department intends to list all the City’s road projects for FY 2025-26, including street medians, allowing flexibility for how the City utilizes its SB1 funding. The projects identified are as follows:
• $2,500,000: Arterial Median Rehabilitation (City Wide) • $150,000: Residential Pavement Zone 4 (Area west of Walker, east of Moody, south of Houston, north of SCE ROW)

Agenda Item No. 12 May 6, 2025 | 2
• $200,000: Residential Pavement Zone 7 (East of Moody, west of Walker, South of SCE ROW, north of Moody Creek)
• $1,140,000: Del Amo Bridge (Design, Engineering, & Environmental) • $200,000: Thermal-plastic Striping (Citywide)
• $200,000: La Palma Avenue Slurry Seal (East City Limits to West City Limits) Upon City Council approval of the attached Resolution, staff will upload the project list to the required site by July 1, 2025.

FISCAL IMPACT:

The City has received SB1 funds from FY 2017-18, which are held in a special revenue account and utilized for roadway projects. It is expected that the City will receive approximately $408,000 in RMRA funds for FY 2025-26. RMRA funds will be allocated to one or more of the projects above as part of the Capital Improvement Budget for FY 2025-26, including any carried-over projects and funds from the current fiscal year.

ATTACHMENTS:

1. SB 1 RMRA Resolution FY 25-26

Resolution No. 2025-__

RESOLUTION NO. 2025-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
PALMA, CALIFORNIA, APPROVING THE LIST OF STREETIMPROVEMENT PROJECTS TO BE FUNDED BY SB1 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA) created by SB 1 resolution, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $408,000 in RMRA funding in Fiscal Year 2025-26 from SB 1; and
WHEREAS, this is the sixth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into the community’s transportation priorities, the project list during annual budget meetings; and
WHEREAS, the City used its Arterial and Residential Pavement Management Plans to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects to meet the communities priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate at least one major arterial street in the City this year and many similar projects into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in excellent condition and this

Resolution No. 2025-__

revenue will help us improve the overall quality of our road system and over the next decade ensure our streets and roads maintain their excellent condition; and WHEREAS, the SB 1 project list and overall investment in the City’s local streets and roads infrastructure will provide a focus on basic maintenance and safety for street infrastructure by using cutting-edge technology, materials, and practices, SB 1 funding will have significant and positive benefits for the City of La Palma.

NOW, THEREFORE, The City Council of the City of La Palma does hereby resolve as follows:

SECTION 1. The Fiscal Year 2025-26 authorized budget will incorporate the following list of projects to be partially funded with Road Maintenance and Rehabilitation Account revenues:

Project: Arterial Street Medians – Citywide
Rehabilitation including curb repairs, tree and
landscape removal, irrigation, hard and soft scape
installation, Estimated Cost $2,500,000
Estimated Useful Life: 15 - 20 Years
Estimated Completion: July 2025
Project: Residential Pavement Zone 4
Rehabilitation including crack sealing, dig-outs, and
slurry seal, Estimated Cost $150,000
Estimated Useful Life: 7 - 10 Years
Estimated Completion: Spring 2025
____________________________________________________________________ Project: Residential Pavement Zone 7
Rehabilitation including crack sealing, dig-outs, and
slurry seal
Estimated Useful Life: 7 - 10 Years
Estimated Completion: Summer 2025
Project: Thermal-Plastic Striping (Citywide)
Estimated Useful Life: 5-7 Years
Estimated Completion: December 2025
____________________________________________________________________

Resolution No. 2025-__

Project: Del Amo Bridge (Design, Engineering, &
Environmental)
Estimated Useful Life: 30 – 50 Years
Estimated Completion: June 2026
Project: La Palma Avenue Slurry Seal (East City Limits to West City Limits)
Maintenance including crack sealing, dig-outs, and
slurry seal
Estimated Useful Life: 7 – 10 Years
Estimated Completion: Summer 2025
____________________________________________________________________ SECTION 2. The City Manager, for the purpose of administrative necessity in implementing the budget, shall have the authority to transfer monies to the appropriate item, account, program, or fund to cover expenditures that have been approved by the City Council, except where such transfer is expressly prohibited in a resolution or ordinance approved by the City Council, such as utility replacement funds.

APPROVED AND ADOPTED by the City Council of the City of La Palma at a regular meeting held on the 6th day of May, 2025.
__________________________
Mark I. Waldman
Mayor
ATTEST:
_____________________________
Kimberly Kenney, CMC
City Clerk

Resolution No. 2025-__

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LA PALMA )
I, KIMBERLY KENNEY, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 6th day of May, 2025, and that it was so adopted by called vote as follows:

AYES:

NOES:
___________________________
Kimberly Kenney, CMC
City Clerk

Agenda Item No. 13 May 6, 2025 | 1
City of La Palma
Agenda Item No. 13
MEETING DATE: May 6, 2025
TO: City Council
FROM: City Manager
SUBMITTED BY: Belinda Deines, Community Development & Public Works Director Julie Herrera, Management Analyst
AGENDA TITLE: Notification of Rate Adjustment for Waste and Recycling Services RECOMMENDED ACTION:

It is recommended that the City Council receive and file the report regarding the rate adjustment for residential and commercial waste and recycling services, effective July 1, 2025.

BACKGROUND:

The City of La Palma has partnered with EDCO (doing business as Park Waste and Recycling) since 1970, to provide City residents and businesses integrated waste and recycling services. In 1997, the City approved a comprehensive Solid Waste Handling Services Agreement for trash and recycling collection, street sweeping, and utility billing for the City’s water and sewer accounts. This Agreement provided that the City would regulate the trash rate set by EDCO (which include service delivery, including labor, trucks, fuel, and insurance and street sweeping services) and prohibited any increases to the rates (that exceed the Consumer Price Index (CPI). Additionally, the processing rates which provide for trash, recycling, green waste diversion and landfill fees, undergo a biennial evaluation to calculate the costs of actual services to determine if increases should occur. Under this agreement, EDCO must notify the City of any rate adjustment 45 days in advance of an increase.

SUMMARY:

On April 15, 2025, EDCO provided the City notice (Attachment 1) of a rate adjustment beginning July 1, 2025, equating to an increase of $0.60 per month for basic residential service (Attachment 2), and $3.30 per month for commercial and multi-family bin customers (Attachment 3) for a three-cubic yard bin serviced one time per week. The increases align with the Consumer Price Index (CPI) for the periods ending December 31, 2023, and December 31, 2024, resulting in a change of 3.42% (Attachment 4). In addition to the inflation rate reflected by the CPI, the Orange County landfill rates will be increasing by 2.6%, beginning July 1, 2025.

Agenda Item No. 13 May 6, 2025 | 2
As indicated in the table below, sanitation rates have historically increased each year:

YEAR 2019 2021 2022 2023 2024 2025
Proposed
Residential Rate
Contractor
Component
$14.03 $14.65 $15.61 $16.38 $16.95 $17.53
Processing
Component
$4.85 $6.04 $8.00 $8.48 $8.77 $8.79
Total $18.88 $22.17 $23.61 $24.86 $25.72 $26.32
Commercial Rate (3-cy bin)
Contractor
Component
$98.29 $102.67 $109.41 $114.80 $118.78 $122.84
Processing
Component
$43.40 $40.57 $43.16 $45.99 $47.53 $46.77
Total $140.69 $143.24 $152.57 $160.79 $166.31 $169.61
The City receives franchise fees equal to 10% of the contractor’s annual gross receipts, excluding the processing component resulting from residential and commercial solid waste handling services. The City receives 5% of the contractor’s annual gross receipts arising from temporary roll-off services.

Revenue received in Fiscal Year 2023-24 resulted in $196,600, and is anticipated to be similar for Fiscal Year 2024-25.

FISCAL IMPACT:

The proposed budget for Fiscal Year 2025-26 will include a revenue of $165,000. Given previous revenue figures and the Consumer Price Index (CPI) adjustment outlined in the franchise agreement, a modest increase in revenue is anticipated.

ATTACHMENTS:

1. 2025 Rate Adjustment Letter

2. La Palma 2025 Rate Adjustment

3. La Palma 2025 Rate Adjustment - Commercial

4. La Palma 2025 Rate Adjustment - CPI

P.O. Box 398 • Buena Park, California 90621
(562) 597-0608 • Fax: (714) 522-8429 • www.edcodisposal.com • Printed on Recycled Paper Mr. Conal McNamara April 15, 2025
City Manager
City of La Palma
7822 Walker Street
La Palma, CA. 90623
Dear Mr. McNamara,
We at family owned and operated EDCO want to once again thank the City of La Palma for allowing EDCO to provide waste and recycling services to the community.

As you well know, we continue to do our best to be recognized as a true community partner while working to meet all required mandated goals of the most recent diverse and stringent SB 1383. It has and will always be our primary goal to provide superior customer service in the safest, most efficient manner possible.

We truly enjoy and respect working with your staff and will continue our dedication to providing all EDCO customers with the best, most reliable and efficient weekly service in the industry.

With this in mind, we have attached documentation to support a proposed rate adjustment effective July 1st, 2025.

In short, the net effect of the CPI driven formula is 2.54% or $.60 per month for basic residential service. For commercial and multifamily bin customers, the net effect of the formula is 1.98% or $3.30 per month for a three cubic yard bin serviced one time per week.

As we all continue to adhere to changes and strive to meet or exceed the requirements of SB 1383, we will continue to do our best to enhance the quality of life in the City of La Palma. Our presence within the city is important to us and the main reason for our involvement with many of the charitable and city events.

If any additional information pertaining to this submittal or any aspect of our services is needed, please feel free to contact me directly at (562) 520-2977.

Thank you for allowing EDCO to be of service!
Sincerely,
Mark Perumean
Mark Perumean
General Manager
Cc: Ms. Belinda Deines, Public Works Director.

Ms. Julie Herrera, Management Analyst.

City of La Palma $ Change % Change
July 1st 2025 Rate Adjustment 2024-25 2024-25
Residential Rate CPI % CPI %
Contractor Rate 3.47% $ 10.71 3.42% $ 11.08 $ 0.37
Billing Charge $ 1.83 $ 1.89 $ 0.06
Automated Greenwaste Service 2017 $ 2.39 $ 2.47 $ 0.08
Street Sweeping,City Tons, AB939 $ 2.02 $ 2.09 $ 0.07
Total Service Rate 3.48% $ 16.95 3.42% $ 17.53 $ 0.58 3.42% Lbs Per Home/Week - Greenwaste 19.34 19.34
Greenwaste processing rate $ 109.92 $ 4.61 $ 113.68 $ 4.76 $ 0.15 3.54% Lbs Per Home/Week - Landfill + Transfer 34.61 34.61
Trash Disposal rate $ 55.50 $ 4.16 $ 53.79 $ 4.03 $ (0.13) -3.46% Gross Rate to Customer $ 25.72 $ 26.32 $ 0.60 2.54%
Net Rate to Park Disposal $ 24.26 $ 24.81
$ Change % Change
2024 2025 2024-25 2024-25
Commercial Rate - 3 cy
Contractor Rate 3.47% $ 85.06 3.42% $ 87.97 $ 2.91 3.42% Street Sweeping,City Tons, AB939 3.47% $ 33.72 3.42% $ 34.87 $ 1.15 3.41% Lbs Per Cu. Yd. 101.58 101.58
Disposal Charge $ 55.50 $ 36.64 $ 53.79 $ 35.51 $ (1.13) -3.08%

3.47% $ 10.89 3.42% $ 11.26 $ 0.37 3.40%
Gross to Customer $ 166.31 $ 169.61 $ 3.30 1.98%
Net to Park Disposal $ 154.43 $ 157.33
Current Rates
7/1/2024
Provide 1 96 Gallon Recycle Cart X 1 week to all
commercial accounts
Proposed Rates
7/1/2025

City of La Palma $ Change % Change
July 1st 2025 Rate Adjustment 2024-25 2024-25
Current Rates
7/1/2024
Proposed Rates
7/1/2025
$ Change % Change
Roll-Off Rate - Temporary 2024 2025 2024-25 2024-25
Contractor Rate 3.47% $ 240.70 3.42% $ 248.94 $ 8.24 3.42% Street Sweeping,City Tons, AB939 $ 65.91 $ 68.17 $ 2.26 3.43% Gross To Customer $ 306.61 $ 317.11 $ 10.50 3.42%
Net to Park Disposal $ 275.95 $ 285.40
$ Change % Change
Compactor Rate 2024 2025 2024-25 2024-25
Contractor Rate 3.47% $ 311.49 3.42% $ 322.16 $ 10.67 3.43% Street Sweeping,City Tons, AB939 $ 85.32 $ 88.24 $ 2.92 3.42% Gross To Customer 396.81 410.40 $ 13.59 3.42%
Net to Park Disposal $ 357.13 $ 369.36
Commercial Rate - 4 cy 2024 2025
Contractor Rate 3.47% $ 113.42 3.42% $ 117.30 $ 3.88 3.42% Street Sweeping,City Tons, AB939 $ 45.01 $ 46.55 $ 1.54 3.42% Lbs Per Cu. Yd. 101.58 101.58
Disposal Charge $ 55.50 $ 48.85 $ 53.79 $ 47.35 $ (1.50) -3.07% Provide 1 96 Gallon Recycle Cart X 1 week to all
commercial accounts 3.47% $ 14.48 3.42% $ 14.98 $ 0.50 3.45% Defer portion of 2015 adjustment until 2020 $ - $ - $ - Gross to Customer $ 221.76 $ 226.18 $ 4.42 2.17%
Net to Park Disposal $ 199.58 $ 203.56

City of La Palma
Commercial Comingled Organics 7/1/2024
1st Bin - Disposal Frequency Extra Additional
Size 1 2 3 Pickup Bin X1wk
Cart (65 gl) Service $ 78.27 $ 156.54 $ 234.82 $ 31.31 $ 70.45 Cart (65 gl) Disposal $ 19.88 $ 39.76 $ 59.65 $ 7.95 $ 17.89 Cart (65 gl) Total $ 98.15 $ 196.30 $ 294.47 $ 39.26 $ 88.34 Cart (96 gl) Service $ 79.37 $ 158.74 $ 238.12 $ 31.75 $ 71.44 Cart (96 gl) Disposal $ 30.23 $ 60.49 $ 90.72 $ 12.10 $ 27.21 Cart (96 gl) Total $ 109.60 $ 219.23 $ 328.84 $ 43.85 $ 98.65 2 CY Service $ 85.99 $ 171.98 $ 257.96 $ 34.41 $ 77.38
2 CY Disposal $ 120.96 $ 241.92 $ 362.89 $ 48.39 $ 108.87 2 CY Total $ 206.95 $ 413.90 $ 620.85 $ 82.80 $ 186.25
City of La Palma
Commercial Comingled Organics 7/1/2025
CPI: 3.42%
1st Bin - Disposal Frequency Extra Additional
Size 1 2 3 Pickup Bin X1wk
Cart (65 gl) Service $ 80.95 $ 161.90 $ 242.86 $ 32.38 $ 72.86 Cart (65 gl) Disposal $ 20.56 $ 41.12 $ 61.69 $ 8.22 $ 18.50 Cart (65 gl) Total $101.51 $203.02 $304.55 $ 40.60 $ 91.36 Cart (96 gl) Service $ 82.09 $ 164.18 $ 246.27 $ 32.84 $ 73.89 Cart (96 gl) Disposal $ 31.27 $ 62.56 $ 93.83 $ 12.51 $ 28.14 Cart (96 gl) Total $113.36 $226.74 $340.10 $ 45.35 $ 102.03 2 CY Service $ 88.93 $ 177.87 $ 266.79 $ 35.59 $ 80.03
2 CY Disposal $ 125.10 $ 250.20 $ 375.32 $ 50.05 $ 112.60 2 CY Total $214.03 $428.07 $642.11 $ 85.64 $ 192.63
Current Rates
Proposed Rates

City of La Palma
Commercial Comingled Recycling
7/1/2024
Frequency Extra
Size 1 2 3 Pickup
Cart (96 gl) Total $ 48.74 $ 97.46 $ 146.20 $ 24.37
3 CY Total $ 97.46 $ 194.93 $ 292.40 $ 48.74
Commercial Comingled Recycling 7/1/2025
CPI: 3.42%
Frequency Extra
Size 1 2 3 Pickup
Cart (96 gl) Total $ 50.41 $ 100.80 $ 151.21 $ 25.20
3 CY Total $ 100.80 $ 201.60 $ 302.41 $ 50.41
Current Rates
Proposed Rates

Consumer Price Index for All Urban Consumers (CPI-U)
Series Id:

Series
Title:

Area:

Item:

Base
Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2015 239.724 241.297 243.738 243.569 246.093 245.459 247.066 246.328 245.431 245.812 245.711 245.357 244.632 243.313 245.951 2016 247.155 247.113 247.873 248.368 249.554 249.789 249.784 249.700 250.145 251.098 250.185 250.189 249.246 248.309 250.184 2017 252.373 253.815 254.525 254.971 255.674 255.275 256.023 256.739 257.890 258.883 259.135 259.220 256.210 254.439 257.982 2018 261.235 263.012 264.158 265.095 266.148 265.522 266.007 266.665 268.032 269.482 268.560 267.631 265.962 264.195 267.730 2019 269.468 269.608 271.311 273.945 274.479 274.380 274.682 274.579 276.054 278.075 277.239 275.553 274.114 272.199 276.030 2020 277.755 278.657 276.589 275.853 276.842 278.121 279.899 280.116 279.366 279.947 280.102 279.560 278.567 277.303 279.832 2021 280.178 281.347 282.648 285.808 287.620 289.218 290.890 291.333 292.209 294.961 296.790 297.925 289.244 284.470 294.018 2022 301.209 302.164 306.679 308.302 310.649 314.072 313.415 313.608 315.033 317.014 314.633 312.601 310.782 307.179 314.384 2023 318.591 317.571 317.873 320.089 320.514 322.055 321.931 324.050 324.984 324.545 323.341 323.456 321.583 319.449 323.718 2024 326.640 328.232 330.671 332.572 332.956 332.357 332.928 333.359 334.123 334.242 333.718 334.531 332.194 330.571 333.817 2025 337.508 Index Change 11.075
% Change 3.42%
Original Data Value
CUURS49ASA0
Not Seasonally Adjusted
All items in Los Angeles-Long Beach-Anaheim, CA,
all urban consumers, not seasonally adjusted
Los Angeles-Long Beach-Anaheim, CA
All items
1982-84=100
2015 to 2025

Agenda Item No. 14 May 6, 2025 | 1
City of La Palma
Agenda Item No. 14
MEETING DATE: May 6, 2025
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: Adoption of 2025 City Council Goals and Objectives RECOMMENDED ACTION:

It is recommended that the City Council approve and adopt the 2025 Goals and Objectives.

BACKGROUND:

On February 3, 2025, the City Council held a special meeting for Goal Setting Facilitation. During the open session portion of the meeting, the City Council received a presentation regarding the Council/Manager form of government and governance best practices, which included the following topics: a) building a highly effective team, b) roles and responsibilities in a municipal organization and d) Vision, Mission, and Values paradigm. The meeting also allowed the City Council to evaluate the City Manager’s performance in closed session.

In advance of the special meeting, a facilitator met individually with each member of the City Council to solicit ideas for new goals for the coming year. At the special meeting, the City Council received a presentation from the facilitators, including ideas for new goals and objectives provided by all City Council members. The City Council reviewed all the ideas submitted, provided comments, and sought clarification. At the conclusion of the special meeting, the City Council requested that the goals and objectives for 2025 be brought to a regular City Council meeting for formal adoption (Attachment 1).

SUMMARY:

At the February 3, 2025, Special Council meeting, the following goals and objectives were discussed by the City Council. Included are some multi-year goals & objectives from the 2024 goal setting meeting.

Goal 1: Model municipal management excellence, fiscal discipline, and financial stewardship. • Continue efforts to ensure succession planning throughout the organization. • Implement and document standard operating procedures (SOP) for fiscal practices to ensure ongoing financial stability and stewardship.
• Continue to promote community engagement through avenues such as town hall meetings, a community survey, and/or miscellaneous outreach while exploring expansion of the City's

Agenda Item No. 14 May 6, 2025 | 2
YouTube channel for streaming meetings and events. (Added new elements from the 2024 objective)
• Initiate a comprehensive Citywide rebranding process, including new monuments, street signs, and an updated branding strategy, with guidance from the Ad Hoc Committee on project scope and cost analysis. (New objective for 2025)
• Enhance the City’s brand identity and image through initiatives such as updating signage and other visual elements to reflect a cohesive and modern aesthetic.

Goal 2: Maintain the City‘s low crime rate through continued investment in public safety best practices.
(There were no specific objectives identified by the City Council but objectives could be identified during the budget process).

Goal 3: Encourage business attraction, retention, and workforce development opportunities through a proactive Economic Development strategy.
• Develop and communicate clear, actionable goals for the Business Engagement Ad Hoc Committee on an annual basis to guide their focus and measure progress to attract and retain businesses.
• Foster synergy between the Business Engagement Ad Hoc Committee and the Economic Development Ad Hoc Committee to streamline efforts in attracting and retaining businesses. • Continue the efforts of the Economic Development Ad Hoc Committee to enhance engagement with land and property owners in commercial and industrial areas to reassess land designations and zoning regulations, thereby optimizing opportunities for business attraction and retention.

Goal 4: Create and maintain City assets, infrastructure, and neighborhoods to demonstrate municipal pride of ownership.
• Enhance the aesthetics, functionality, and economic viability of shopping centers through capital improvements, code enforcement, and strategic planning to align with community expectations and strengthen fiscal stability. (New objective for 2025) • Establish a neighborhood preservation ordinance (multi-year objective):
o Residential Rentals
o Sale of Properties
o Ensuring Fees are Received to Cover Costs
o Integrating with Code Enforcement
o Review Rental Inspection Programs from Other Jurisdictions (e.g. Santa Ana) o Council to Ultimately Define Strictness of the Program o Ensure Continuity with Short-Term Rental Ordinance
• Prioritize and expedite water treatment upgrades to address the issue of brown water manganese in the water supply system, ensuring water quality and public health. • Conduct a feasibility study for a community garden, including potential locations, costs, and public interest, with consideration for a farmer’s market element. (New objective for 2025) • Explore solar feasibility at City facilities.

Goal 5: Provide residents and visitors of all ages with community events that encourage citizen involvement, foster human development, promote physical and mental health, and strengthen community through people, parks, and programs.

Agenda Item No. 14 May 6, 2025 | 3
• Ensure that all programs and services for the City's senior and veteran populations are wellpublicized, accessible, and adequately funded through enhanced outreach and investment in existing events. (New objective for 2025)
• Explore increasing passive and active recreation space. • Develop a City event focused on bringing together families and youth. • Enhance and improve City/school relationship with all 5 of La Palma’s schools. • Incorporate mental and physical wellness activities into City events.

FISCAL IMPACT:

There is no fiscal impact associated with the adoption of the 2024 Goals. However, individual goals may have a fiscal impact which will be identified when brought forward for City Council action.

ATTACHMENTS:

1. 2025 Goals and Objectives

Goal 1: Model municipal management excellence, fiscal discipline, and financial stewardship.

Continue efforts to ensure succession planning throughout the organization.

Implement and document standard operating procedures (SOP) for fiscal practices to ensure ongoing financial stability and stewardship.

Continue to promote community engagement through avenues such as town hall meetings, a community survey, and/or miscellaneous outreach while exploring expansion of the City's YouTube channel for streaming meetings and events.

Initiate a comprehensive Citywide rebranding process, including new monuments, street signs, and an updated branding strategy, with guidance from the Ad Hoc Committee on project scope and cost analysis.

Enhance the City’s brand identity and image through initiatives such as updating signage and other visual elements to reflect a cohesive and modern aesthetic.

Goal 2: Maintain the City‘s low crime rate through continued investment in public safety best practices.
(There were no specific objectives identified by the City Council but objectives could be identified during the budget process).

Goal 3: Encourage business attraction, retention, and workforce development opportunities through a proactive Economic Development strategy.

Develop and communicate clear, actionable goals for the Business Engagement Ad Hoc Committee on an annual basis to guide their focus and measure progress to attract and retain businesses.

Foster synergy between the Business Engagement Ad Hoc Committee and the Economic Development Ad Hoc Committee to streamline efforts in attracting and retaining businesses.

Continue the efforts of the Economic Development Ad Hoc Committee to enhance engagement with land and property owners in commercial and industrial areas to reassess land designations and zoning regulations, thereby optimizing opportunities for business attraction and retention.
www.CityOfLaPalma.org

Goal 4: Create and maintain City assets, infrastructure, and neighborhoods to demonstrate municipal pride of ownership.

Goal 5: Provide residents and visitors of all ages with community events that encourage citizen involvement, foster human development, promote physical and mental health, and strengthen community through people, parks, and programs.

Enhance the aesthetics, functionality, and economic viability of shopping centers through capital improvements, code enforcement, and strategic planning to align with community expectations and strengthen fiscal stability.

Establish a neighborhood preservation ordinance (multi-year objective):

Residential Rentals
Sale of Properties
Ensuring Fees are Received to Cover Costs
Integrating with Code Enforcement
Review Rental Inspection Programs from Other Jurisdictions (e.g. Santa Ana) Council to Ultimately Define Strictness of the Program
Ensure Continuity with Short Term Rental Ordinance
Prioritize and expedite water treatment upgrades to address the issue of brown water manganese in the water supply system, ensuring water quality and public health.

Conduct a feasibility study for a community garden, including potential locations, costs, and public interest, with consideration for a farmers market element.

Explore solar feasibility at City facilities.

Ensure that all programs and services for the City's senior and veteran populations are well-publicized, accessible, and adequately funded through enhanced outreach and investment in existing events.

Explore increasing passive and active recreation space.

Develop a City event focused on bringing together families and youth.

Enhance and improve City/school relationship with all 5 of La Palma’s schools.

Incorporate mental and physical wellness activities into City events. www.CityOfLaPalma.org

Agenda Item No. 15 May 6, 2025 | 1
City of La Palma
Agenda Item No. 15
MEETING DATE: May 6, 2025
TO: City Council
FROM: City Manager
SUBMITTED BY: Ryan Hallett, Assistant City Manager
AGENDA TITLE: Ratification of Labor Agreements and Updated Management Resolution
RECOMMENDED ACTION:

It is recommended that the City Council take the following actions:

1. Adopt a Resolution approving the Memorandum of Understanding between the City of La Palma and the La Palma General Employees Association;

2. Adopt a Resolution approving the Memorandum of Understanding between the City of La Palma and the La Palma Professional Employees Association;

3. Adopt a Resolution approving the Memorandum of Understanding between the City of La Palma and the La Palma Police Association; and

4. Adopt a Resolution approving the Salary Schedule and Comprehensive Listing of Personnel Practices and Benefits for Executive Management Employees.

BACKGROUND:

The City has three recognized employee bargaining units: the La Palma General Employees Association (LPGEA), the La Palma Professional Employees Association (LPPEA), and the La Palma Police Association (LPPA). Each of these groups is represented by a Memorandum of Understanding (MOU) that outlines the terms and conditions of employment, including wages, benefits, and other employment-related matters. All current MOUs for these employee groups are set to expire on June 30, 2025. In addition to these bargaining units, the City also employs Executive Management employees who are not represented by a union and are considered “at will” employees. Their compensation, benefits, and terms of employment are established by a City Council-adopted Resolution rather than through a collectively bargained MOU.

SUMMARY:

The City initiated the labor negotiation process in January 2025 to develop new agreements effective

Agenda Item No. 15 May 6, 2025 | 2
July 1, 2025. Negotiations were conducted in accordance with the Meyers-Milias-Brown Act, and the City has successfully reached tentative agreements with all employee bargaining units. In parallel, an updated Executive Management Resolution is being presented for City Council consideration to align with the terms negotiated with represented groups. The following summarizes the key changes included in the proposed contract and resolution updates:

La Palma General Employees Association
• Term of MOU: July 1, 2025 to June 30, 2028.
• Compensation: Year 1 – 5.0% increase, Year 2 – 4.0% increase, and Year 3 – 4.0% increase. • Increase in medical plan premiums as follows:
o Employee only: additional $101 per month
o Employee + one: additional $400 per month
o Employee + two or more: $500 per month
• Increase vision reimbursement by $100 annually, bringing the total to $400 per year. • Adjust holiday and winter closure hours to accurately reflect the City’s standard work schedule of 10 hours per day, 40 hours per week. Previously, the City only provided 9 hours of holiday pay, requiring staff to use 1 hour of paid time off to cover each holiday. • Adjust bereavement leave to accurately reflect the City's standard work schedule. • Increase in boot allowance by $150 per year, totaling $300 per year. • Remove the requirement to use 40 hours of vacation before becoming eligible for the vacation cash-out option.
• Reinstated a position classification to support potential future succession planning. • Add a reopener clause to evaluate potential changes to the timing of employee leave benefit payments, with the goal of mitigating unintended tax implications under IRS constructive receipt rules.
• Reassign the Administrative Secretary position from the La Palma General Employees Association to the La Palma Police Association bargaining unit. • Remove the reopener clause that allowed for future negotiations related to updates to the Family and Medical Leave Act (FMLA) policy.
• Minor technical language modifications have been made throughout the MOU for ease of administration and/or clarification.

La Palma Professional Employees Association
• Term of MOU: July 1, 2025 to June 30, 2028.
• Compensation: Year 1 – 5.0% increase, Year 2 – 4.0% increase, and Year 3 – 4.0% increase.

Agenda Item No. 15 May 6, 2025 | 3
• Increase in medical plan premiums as follows:
o Employee only: additional $101 per month
o Employee + one: additional $400 per month
o Employee + two or more: $500 per month
• Increase vision reimbursement by $100 annually, bringing the total to $400 per year. • Adjust holiday and winter closure hours to accurately reflect the City’s standard work schedule of 10 hours per day, 40 hours per week. Previously, the City only provided 9 hours of holiday pay, requiring staff to use 1 hour of paid time off to cover each holiday. • Adjust bereavement leave to accurately reflect the City's standard work schedule. • Increase the annual sick leave cash-out option from 40 hours to 50 hours to align with other bargaining units.
• Remove the requirement to use 40 hours of vacation before becoming eligible for the vacation cash-out option.
• Add a reopener clause to evaluate potential changes to the timing of employee leave benefit payments, with the goal of mitigating unintended tax implications under IRS constructive receipt rules.
• Remove the reopener clause that allowed for future negotiations related to updates to the Family and Medical Leave Act (FMLA) policy.
• Minor technical language modifications have been made throughout the MOU for ease of administration and/or clarification.

La Palma Police Association
• Term of MOU: July 1, 2025 to June 30, 2028.
• Compensation: Year 1 – 5.0% increase, Year 2 – 4.0% increase, and Year 3 – 4.0% increase. • Increase in medical plan premiums as follows:
o Employee only: additional $101 per month
o Employee + one: additional $400 per month
o Employee + two or more: $500 per month
• Increase vision reimbursement by $100 annually, bringing the total to $400 per year. • Adjust holiday and winter closure hours to accurately reflect the City’s standard work schedule of 10 hours per day, 40 hours per week.
• Adjust bereavement leave to accurately reflect the City's standard work schedule. • Update the overtime calculation method to reflect a 28-day work period, with overtime eligibility beginning after 160 hours of actual work performed within that period.

Agenda Item No. 15 May 6, 2025 | 4
• Establishes annual longevity pay for Police Officers, Police Sergeants, and Police Dispatchers based on continuous full-time service with the La Palma Police Department. Eligible employees will receive $5,000 annually upon reaching 10 years of service, $7,500 annually at 15 years, and $10,000 annually at 20 years. Payments are issued each year in the pay period following the employee’s qualifying anniversary date, contingent on the employee being in active status.
• Reassign the Administrative Secretary position to the La Palma Police Association bargaining unit from the La Palma General Employees Association and retitling the position to “Executive Assistant to the Chief of Police”.
• Add Dr. Martin Luther King, Jr. Day as a paid holiday for sworn employees to ensure consistency with the holiday schedule provided to non-sworn employees. • Remove the requirement to use 24 hours of vacation before becoming eligible for the vacation cash-out option.
• Add a reopener clause to evaluate potential changes to the timing of employee leave benefit payments, with the goal of mitigating unintended tax implications under IRS constructive receipt rules.
• Remove the reopener clause that allowed for future negotiations related to updates to the Family and Medical Leave Act (FMLA) policy.
• Minor technical language modifications have been made throughout the MOU for ease of administration and/or clarification.

Executive Management
• Term of MOU: July 1, 2025 to June 30, 2028.
• Compensation: Year 1 – 5.0% increase, Year 2 – 4.0% increase, and Year 3 – 4.0% increase. • Increase in medical plan premiums as follows:
o Employee only: additional $101 per month
o Employee + one: additional $400 per month
o Employee + two or more: $500 per month
• Increase vision reimbursement by $100 annually, bringing the total to $400 per year. • Adjust holiday and winter closure hours to accurately reflect the City’s standard work schedule of 10 hours per day, 40 hours per week. Previously, the City only provided 9 hours of holiday pay, requiring staff to use 1 hour of paid time off to cover each holiday. • Adjust bereavement leave to accurately reflect the City's standard work schedule. • Reinstated a position classification to support potential future succession planning. • Minor technical language modifications have been made throughout for ease of administration and/or clarification.

Agenda Item No. 15 May 6, 2025 | 5

FISCAL IMPACT
The overall cost of the MOU’s is an increase of 15.7% with base salary increases over the three years being 5%, 4%, and 4% or $1,323,500. All agreements are effective July 1, 2025, and costs will be incorporated into affected future budgets. The total cost for the new agreements is as follows:

ATTACHMENTS:

1. Resolution approving LPGEA Memorandum of Understanding

2. Resolution approving LPPEA Memorandum of Understanding

3. Resolution approving LPPA Memorandum of Understanding

4. Executive Management Resolution

Resolution 2025-xx

RESOLUTION NO. 2025-xx

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LA PALMA ADOPTING THE MEMORANDUM

OF UNDERSTANDING BETWEEN THE CITY OF LA

PALMA AND THE LA PALMA GENERAL

EMPLOYEES ASSOCIATION
WHEREAS, the City of La Palma (City) and the La Palma General Employees Association (LPGEA), have met and conferred in good faith; and WHEREAS, the City and the LPGEA have reached agreement; and WHEREAS, the attached Memorandum of Understanding embodies those terms and conditions upon which agreement was reached; and
WHEREAS, the Interim City Manager and President of LPGEA have signed the Memorandum of Understanding for the period of July 1, 2025 to June 30, 2028.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of La Palma hereby approves the Memorandum of Understanding between the City of La Palma and the La Palma General Employees Association, for the contract period of July 1, 2025, to June 30, 2028.

APPROVED AND ADOPTED by the City Council of the City of La Palma at a regular meeting held on the 6th of May 2025.
_______________________________
Mark I. Waldman
Mayor
ATTEST:
__________________________
Kimberly Kenney, CMC
City Clerk

Resolution 2025-xx

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.

CITY OF LA PALMA )
I, KIMBERLY KENNEY, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 6th day of May 2025, and that it was so adopted by called vote as follows:

AYES:

NOES:
____________________________________
Kimberly Kenney, CMC
City Clerk

MEMORANDUM OF UNDERSTANDING
July 1, 2025 – June 30, 2028
City of La Palma
and
La Palma General Employees Association
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i

TABLE OF CONTENTS
ARTICLE I TERM OF AGREEMENT .......................................................................... 1 ARTICLE II RECOGNITION .......................................................................... 2 ARTICLE III COMPENSATION .......................................................................... 3 ARTICLE IV CONDITIONS OF EMPLOYMENT......................................................................... 9 ARTICLE V HOLIDAYS ..........................................................................10 ARTICLE VI VACATIONS ..........................................................................11 ARTICLE VII SICK LEAVE ..........................................................................14 ARTICLE VIII OTHER LEAVE PROVISIONS ..........................................................................18 ARTICLE IX TRAINING ..........................................................................21 ARTICLE X GROUP INSURANCE ..........................................................................22 ARTICLE XI RETIREMENT ..........................................................................26 ARTICLE XII DEFERRED COMPENSATION ..........................................................................27 ARTICLE XIII UNIFORMS ..........................................................................28 ARTICLE XIV COMPLETION OF MEET AND CONFER..............................................................29 ARTICLE XV GRIEVANCE PROCEDURE ..........................................................................31 ARTICLE XVI LAYOFF PROCEDURE ..........................................................................34 ARTICLE XVII LPGEA AND EMPLOYEE RIGHTS........................................................................36 ARTICLE XVIII INTEGRATION AND CONSTRUCTION ..............................................................39 ARTICLE XIX NONDISCRIMINATION ..........................................................................40 ARTICLE XX SEPARABILITY ..........................................................................41 ARTICLE XXI MAINTENANCE OF MEMBERSHIP......................................................................42 ARTICLE XXII DISCIPLINARY PROCEDURE ..........................................................................43 ARTICLE XXIII IMPLEMENTATION ..........................................................................51 ATTACHMENT A – SALARY TABLE (FY 2025-2026) ...................................................................52 ATTACHMENT B – SALARY TABLE (FY 2026-2027)....................................................................54 ATTACHMENT C – SALARY TABLE (FY 2027-2028)....................................................................56 Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

1 ARTICLE I

TERM OF AGREEMENT
This Memorandum of Understanding ("Memorandum") is made by and between the City of La Palma and the La Palma General Employees Association (LPGEA) and shall be in effect from July 1, 2025 through June 30, 2028.

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2 ARTICLE II

RECOGNITION
Pursuant to the Employees Resolution of the City, and California Government Code Sections 3500- 3510, the City hereby recognizes the La Palma General Employees' Association as the majority representative of the full-time employees who are members of the Association, which includes employees in all general classifications as follows:

Account Clerk
Accounting Technician (Confidential)
Administrative Assistant
Code Enforcement/Business License Officer
Custodian
Engineering Technician
Human Resources Specialist (Confidential)
Lead Maintenance Worker
Lead Utility Operator
Maintenance Worker
Management Assistant
Recreation Coordinator
Water Service Worker I
Water Service Worker II
An employee who is regularly scheduled to work 40 hours per week is considered to be full time.

The parties agree that any job description or classification that the City proposes to add, delete, or change in the bargaining unit is subject to the meet and confer process.

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3 ARTICLE III

COMPENSATION
SECTION 1. The basic compensation plan for all full-time employees of the City of La Palma who are now employed, or in the future will be employed, in any of the categories of employment represented by the Unit is set forth in Article II. The plan will encompass employee obligations and privileges with recognition of faithful and efficient service.

SECTION 2. CATEGORIES OF EMPLOYMENT
Regular Full-Time - Positions with characteristics requiring full-time employment of 40 hours per workweek.

SECTION 3. COMPENSATION - REGULAR FULL-TIME CATEGORY
A. Compensation shall be determined from salary schedules consisting of wage ranges, each of which includes seven steps, or rates of pay; each horizontal step being approximately five percent greater than the previous step.

B. Initial Employment. The rate of compensation for initial employment in any class shall be at Step "A”, provided that the City Manager, in his or her sole discretion, may approve compensation at a higher step if they find that the person employed is reasonably entitled, by reason of experience or ability, to a rate in any one of the steps above the minimum or that it is difficult to obtain qualified applicants at the minimum rate.

C. Merit Advancement within a Range.

1. The primary reason for advancement within a range shall be meritorious performance in an employee's assigned duties. Meritorious performance shall be measured by the receipt of a rating of satisfactory or above on the performance evaluation.

2. Merit increases shall be based on meritorious service, and, if granted, shall be effective on the first day of the pay period in which the anniversary falls. The City Manager may suspend merit increases in times of economic uncertainty or hardship.

3. An employee may be advanced within his or her respective compensation ranges in accordance with the following schedule:

Advancement to the next step at the completion of an employee’s initial six months of satisfactory service in the classification, if the employee is hired at A, as determined by the Department Head.

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4 Advancement to the next step at the completion of an employee’s initial twelve months of satisfactory service in the classification, if the employee is hired at A, as determined by the Department Head.

Advancement to the next step annually thereafter at the completion of one year of satisfactory service in the prior step, or if the employee is hired at Step B or above, as determined by the Department Head.

4. Satisfactory service shall be defined as having received an Overall Performance Rating of Satisfactory or above in the employee’s annual performance review, as determined by the Department Head.

5. All proposed advancements shall be recommended by the Department Head and approved by the City Manager before becoming effective.

6. When an employee demonstrates exceptional ability and proficiency, such employee may be advanced to the next higher step within the employee’s salary range with the approval of the City Manager, in her/his sole discretion, following recommendation by the Department Head, without regard to the minimum length of service provisions contained in this section. Advancements under this section shall change the employee’s merit increase eligibility date to the anniversary of the last step increase.

D. Promotion or Advancement in Rate of Compensation. When an employee is promoted from the employment in one class to the employment in a class assigned a higher range, advancement shall be to the lowest step in such higher range, which will provide not less than a five percent (5%) increase in compensation unless the top step in such range provides less than a five percent (5%) increase. Additional compensation being received because of special assignment shall not be considered in determining to which step an employee is advanced.

E. Reassignment of Compensation Ranges. Any employee who is employed in a classification which is reassigned to a different salary range from that previously assigned shall be retained at the salary step in the new range closest to the salary amount they had previously, but not lower, and shall have credit for the length of service in such step that was served in such lower range applied to determine the time eligible to move to the next higher step in the new range, provided, however that the City Manager may at the time of reassignment, at his/her discretion, place the employee in such step and make such changes in anniversary dates as may be deemed appropriate.

F. Reduction in Compensation for cause. The compensation of any employee may be reduced by one or more steps for good cause, upon the recommendation of the Department Head and approval of the City Manager.

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5 G. Reduction in Compensation for disability. When a regular employee in good standing is reduced to a position in a lower class for physical disability reasons, the employee shall receive the highest salary in the new range that does not exceed the employee's rate of pay immediately prior to reduction and shall retain their merit increase eligibility date.

H. Demotion. When an employee is demoted to a position in a lower range, on the approval of the City Manager, his or her compensation shall be at a rate reduction of at least one step.

I. Y-Rate. If an employee is demoted and the compensation reduction as described in H above exceeds the top step in the employee’s new classification, the employee may be Yrated at the discretion of the City Manager. The employee shall receive no equity, cost of living, or any other increases in salary until their current salary is equal to or lesser than the top step in their new classification.

J. Revision in Classification and Compensation Plan. The City reserves the right, in its sole discretion, to establish new classes of employment or to combine or abolish existing classes.

SECTION 4. OVERTIME/STANDBY DUTY/CALL BACK PAY/WATER WEEKEND DUTY A. Overtime shall be defined as actual hours worked which exceed 40 hours in any workweek. “Actual Hours” includes time worked and excludes compensatory, vacation, floating holiday, and sick leave and any hours already compensated at the overtime premium rate of pay (1.5 times regular hourly rate). In the event an employee is scheduled to work a City event on Friday and/or a Saturday and/or a Sunday, and elects to utilize floating holiday time during the same work period, such floating holiday time shall count as hours worked for that work period.

A Department Head may prescribe minimum and reasonable periods of overtime work to meet operational needs of the department. Except as otherwise provided herein, overtime shall be paid at one and one-half times the hourly rate of the employee's salary, provided, however, that compensatory time off, provided at the rate of one and one-half times the overtime hours worked, may be granted per the employee's request in lieu of overtime compensation except when the City Manager determines that overtime must be paid or compensatory time must be taken to meet City operational needs. An employee may only receive payment or credit for overtime, which was reported in the pay period in which it was earned. Employees are able to cash-out accumulated compensatory time upon separation of employment. An employee may accumulate a maximum of eighty/80 hours of compensatory time. An employee who has accumulated the maximum will be paid in cash for overtime until such time as they are below the maximum accumulation.

Overtime shall fall into two categories: that which is approved in advance, and that which is considered emergency in nature and is approved after it occurs. All overtime shall be Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

6 approved by the Department Head or, in their absence, the City Manager. Such approvals will be on a written form, which is signed by the Department Head and attached to the time sheet, which is submitted biweekly to the Administrative Services Department.

B. Standby Duty. Standby duty is remaining in a state of readiness and available for call outs and emergencies. It is not time worked. Decisions regarding if and when to place employees on standby is the prerogative of the Department Director. Compensation for Standby Duty shall be $200 per week for each week of Standby duty. Standby duty over designated holidays shall be for 24 hours and shall be compensated with 8 hours of regular time and is separate from the normal weekly standby duty. Additional compensation for actual time spent checking on the water system twice each day on weekend days, designated Fridays off, and holidays shall be provided for water weekend duty as described in Section 4 (C) below.

In order to be eligible to work standby duty, employees must be able to report to the work site within 30 minutes of being called. This time will be determined using a reputable internet mapping site to determine the length of time required to drive from the employee’s residence to City Hall. Standby duty will be assigned on an equitable and fair basis to all qualified employees. At the discretion of the City Manager, employees not able to comply with the 30 minute response time requirement will be eligible for Standby duty. Employees who cannot comply with the 30 minute response time requirement, but who still wish to be on Standby duty, will not receive compensation for travel time to or from the work location.

C. Call Back and Emergency Overtime Duty. In addition to standby compensation, employees shall receive a minimum of two hours compensation at Overtime rates (1.5) for hours worked for any call--including during the holiday closure--which requires them to return to duty with less than 24 hours’ notice and as such hours are already compensated at Overtime, are not included in the calculation of hours worked for purposes of the overtime threshold in Section 4 (A) above. Any time already compensated at the Overtime premium rate (1.5) is not included in the calculation of hours worked for purposes of the overtime threshold in Section 4 (B) above.

D. Water Weekend Duty. Employees in the Water and Maintenance Divisions are required to perform Water Weekend Duty which involves a combination of standby and call back to work, but where there is more than 24 hours’ notice of the additional return to work required. Standby time is compensated as described above in Section 4 (B). The additional work required with more than 24 hours’ notice shall be compensated at the employee’s regular rate for four hours each day, which includes checking the water system on site twice daily and by internet connection a minimum of twice daily and as needed. The four hours is compensated at straight time unless the hours exceed the Overtime threshold, at which time, the portion exceeding forty hours would then be compensated at Overtime rates. Call back time during the "Holiday Closure" shall be at Overtime rates regardless of whether or not the employee has exceeded 40 hours in the work week, as described in Section 4 (A) above.

Time compensated at the Overtime premium rate (1.5) is not included in the calculation of hours worked for purposes of the overtime threshold in Section 4 (A).

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7 F. Court Time. Employees who are required to appear in court during their off duty hours on behalf of the City shall receive overtime compensation for the number of hours actually spent in court, plus round trip travel time from the place of employment to the court, with a minimum of two (2) hours of such compensation. If a City vehicle is not available, mileage will be paid at the standard mileage rate as established by the IRS from time to time.

G. Scheduling Changes. Employees shall be notified a minimum of three (3) working days in advance of any scheduling changes, except in the case of emergency or if time is of the essence.

SECTION 5. SPECIAL COMPENSATION
A. Court Subpoena. An employee who is served with a subpoena to appear as a witness during regular work hours in a deposition or proceeding in a court action to which they are not a party shall receive their normal compensation for the time actually spent while personally testifying or traveling to place of testimony, less any amount the employee receives or is entitled to as witness fees or mileage reimbursement. The employee shall be responsible for demanding payment for all fees or reimbursables to which they are entitled.

B. Jury Duty. Any employees summoned for jury duty in a court action shall receive their normal compensation for the actual time served as required as an actual or prospective juror. Employees shall not receive compensation for actual time served as an actual or prospective juror for regular days off (e.g. alternate Fridays). Employees are allowed to keep the stipend provided by the County.

C. Acting Pay. All employees, who by written assignment by their Department Head, perform the duties of a position with a higher salary classification than that in which they are regularly employed, shall receive the compensation specified for the position to which they are thus assigned if they perform the duties thereof for a period of one (1) uninterrupted month or more, said increased compensation to be at such step within the higher classification as will accord such employee an increase of at least five percent (5%) over their current regular compensation, provided that the compensation does not exceed the maximum step in the salary range for the higher classification. Such compensation shall be retroactive to the first day of the assignment.

D. Bilingual Pay. Employees passing the City’s bilingual testing process shall receive an additional $150 per month for speaking the language of Korean, Mandarin Chinese, Spanish, Vietnamese, or other language(s) deemed required or necessary by the City Manager. Biennial recertification by the Human Resources Division is required.

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8 SECTION 6. PAY PERIODS
All employees shall be paid bi-weekly. Requests for changes to tax withholding may be made four (4) times per calendar year (A request to change withholding for one pay period and return it to the prior withholding the next pay period is considered two requests). Additional change requests may be granted upon approval of the City Manager.

SECTION 7. SALARY SCHEDULES
A. Attachment A shall become effective the pay period that includes July 1, 2025, and consists of a base salary increase of 5% for all represented classifications.

B. Attachment B shall become effective the pay period that includes July 1, 2026, and consists of a base salary increase of 4% for all represented classifications.

C. Attachment C shall become effective the pay period that includes July 1, 2027, and consists of a base salary increase of 4% for all represented classifications.

SECTION 8. REST PERIODS AND CLEANUP TIME
A. Employees shall be allowed paid rest periods of fifteen (15) minutes during each four (4) consecutive hours of work. Such a rest period shall be scheduled in accordance with the requirements of the work unit, but in no case shall rest periods be scheduled within one (1) hour of the beginning or the ending of a work shift or lunch period.

B. Each employee shall, when necessary, be permitted a reasonable period of paid time, as determined by the Department Head, at the end of each work shift to perform such activities as cleaning up a work area, putting away tools, personal wash up, and changing clothes.

Section 9. SCHEDULE OF WORK
Employees are assigned to a seven day work period. Regularly scheduled hours of work for employees working regular business hours shall be Monday through Thursday, 7:30 a.m. to 6:30 p.m. with a one hour meal break as described in Section 8 above. Employees not associated with regular business hours may have a different schedule, but will not exceed 40 regularly scheduled hours of work for the work period. By setting these schedules, the City is in no way giving up its Management right to set or change work schedules or to make changes to schedules to cover for illness or emergencies.

Section 10. DIRECT DEPOSIT. All employees are required to sign up for direct deposit.

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9 ARTICLE IV

CONDITIONS OF EMPLOYMENT
SECTION 1. EQUAL OPPORTUNITY. The City of La Palma is an equal opportunity employer and prohibits discrimination in employment because of an individual’s Protected Class. Protected Class includes race, age, religion, color, national origin, ancestry, sex (including pregnancy, childbirth, breastfeeding, or related medical conditions), gender (including gender identity and gender expression), sexual orientation, citizenship status, disability, medical condition, genetic characteristics or information, marital status, and military or veteran status.

SECTION 2. RESIDENCY. Residency in the City of La Palma is not required as a condition of employment.

SECTION 3. PHYSICAL EXAMINATION. The City reserves the right to designate a doctor, or doctors, for all required examinations, and the cost of any required examinations will be borne by the City.

SECTION 4. PROBATION PERIOD. An employee shall be on probation for a period of one year from the date of commencement of employment. Probation may be extended an additional six (6) months when warranted upon approval of the City Manager. Probationary employees may be terminated from employment with or without cause by the Department Head with the approval of the City Manager, in their sole discretion, and in accordance with State and Federal laws.

SECTION 5. OTHER EMPLOYMENT. No employee shall engage in any other employment that is inconsistent or incompatible with City employment. Other employment must be approved in advance by the Department Head. Wearing of City uniforms or City-supplied clothing while engaging in non-City employment is prohibited.

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10 ARTICLE V

HOLIDAYS
SECTION 1. DESIGNATED HOLIDAYS. Designated holidays shall be New Year's Day, President's Day, Martin Luther King, Jr. Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, Christmas Eve Day, and Christmas. When a designated holiday falls on a regularly scheduled Friday off, the day of absence shall be the preceding Thursday except in the specific cases listed in Section 1 (F). When a designated holiday falls on Saturday, the day of absence shall be the preceding Friday except in the specific cases listed in Section 1(F). When a designated holiday falls on Sunday, the day of absence shall be the following Monday.

A. All full-time employees shall be granted 40 hours of absence, termed "floating holiday", in addition to designated holidays. "Floating holiday" time shall be taken between July 1 and June 30 of the fiscal year at a time selected by the employee with the concurrence of the Department Head. For new employees, floating holiday hours shall be pro-rated over the fiscal year based on the employee's employment date. Any floating holiday time remaining as of June 30 of the fiscal year shall be forfeited and at no time shall floating holiday time be eligible for cashout.

B. All City Hall, City Yard, Police Department Administrative staff, and Community Services full-time staff will utilize floating holiday time, compensatory leave, or vacation leave to facilitate a Holiday closure between the Christmas Holiday and the New Year’s Holiday.

C. If any designated holiday is within an employee's scheduled vacation period, that particular day of absence will be charged to "holiday" rather than "vacation".

D. No absence under the holiday provisions in this article shall be charged to or paid from sick leave accumulated benefits.

E. Holiday pay for Full-Time Employees. Full-time employees covered by this agreement, shall be paid on the basis of the number of hours normally scheduled on the day on which the holiday falls. If the employee would have worked in excess of 10 hours, the employee will be required to utilize Compensatory, Floating Holiday, or Vacation hours to supplement the difference.

F. When Christmas falls on a Friday, ten hours of floating holiday will be given in lieu of the Christmas Eve holiday as the Christmas holiday leave will be taken on Christmas Eve.

When Christmas Eve falls on a Saturday, ten hours of floating holiday will be given in lieu of the Christmas Eve holiday to be used to offset the Holiday closure between Christmas and New Year’s.

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11 ARTICLE VI

VACATIONS
SECTION 1. VACATIONS. In accordance with the following rules, and subject to the limitations, deductions and loss thereof as provided in the Article, each employee shall be allowed and credited with the right to take vacation absences with pay, hereinafter referred to as vacation, in addition to allowed holidays and sick leave absences.

A. Schedule for Tier One Full-time Employees (Hired prior to July 1, 2011). Vacation credit shall be computed on the basis of 4.62 hours per pay period (120.12 hours) for continuous full-time employment beginning with the first day of their employment.

Continuous full-time employment shall be time for which the employee is paid, except for the first 30 days of leave without pay.

1. Vacation. Credit shall be computed on the basis of 4.62 hours per pay period (120.12 hours per year) for each year of continuous full-time employment, beginning with the 13th month to the completion of 120 months of continuous employment.

2. Vacation. Credit shall be computed on the basis of 6.16 hours per pay period (160.16 hours per year) for each year of continuous full-time employment, beginning with the 121st month to the completion of 180 months of continuous employment.

3. Vacation. Credit shall be computed on the basis of 7.08 hours per pay period (184.08 hours per year) for each year of continuous full-time employment, beginning with the 181st month to the completion of 240 months of continuous employment.

4. Vacation. Credit shall be computed on the basis of 7.70 hours per pay period (200.2 hours per year) for each year of continuous full-time employment, beginning with the 241st month of continuous employment.

B. Schedule for Tier Two Employees (Hired as new City of La Palma Employees on or after July 1, 2011). Vacation credit shall be computed on the basis of 3.08 hours per pay period for continuous full-time employment beginning with the first day of their employment.

Continuous full-time employment shall be time for which the employee is paid, except for the first 30 days of leave without pay.

1. Vacation. Credit shall be computed on the basis 3.08 hours per pay period (80.08 hours per year) for each year of continuous full-time employment, beginning with the 13th month to the completion of 60 months of continuous employment.

2. Vacation. Credit shall be computed on the basis of 4.62 hours per pay period (120.12 hours per year) for each year of continuous full-time employment, beginning with the 61st month to the completion of 120 months of continuous employment.

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12 3. Vacation. Credit shall be computed on the basis 6.16 hours per pay period (160.16 hours per year) for each year of continuous full-time employment, beginning with the 121st month to the completion of 240 months of continuous employment.

4. Vacation. Credit shall be computed on the basis 7.08 hours per pay period (184.08 hours per year) for each year of continuous full-time employment, beginning with the 241st month of continuous employment.

C. Taking. All or any part of accrued vacation hours credited may be taken only as herein provided. Accrued vacation hours taken shall be counted as full-time employment.

D. First Vacation. An employee's first vacation may not be taken before the accumulated vacation hours credited to the employee are equal to or greater than the vacation credit for 6 months of work, unless approved by the City Manager, in his/her sole discretion.

E. Department Head Approval. An employee shall not be entitled to take vacation unless the date(s) of the vacation are approved in advance by the employee's Department Head, or, in the event of the Department Head's refusal or failure to do so, by the City Manager.

Vacation shall not be unreasonably denied. The taking of an employee's vacation shall be scheduled for such time as will achieve the most efficient functioning of the department and so as to avoid any loss of allowable vacation absences by reason of the limitation on the accrual; provided, however, that the Department Head will endeavor, subject to the foregoing limitations, to schedule an employee's vacation at or near the date(s) requested by the employee.

1. Except as otherwise provided herein, vacation may not be used in lieu of sick leave and generally must be scheduled in advance of the absence; however, if the Department Head determines that an emergency or other unusual occurrence exists for which sick leave cannot be used and the employee has no compensatory time or other appropriate leave available, the Department Head has the discretion to allow vacation hours to be used when an employee calls in an absence on the actual day of the absence.

F. Maximum Accumulation. Allowed vacation credits shall be cumulative. Vacations taken shall be deducted from the first vacation credits accumulated. The maximum accumulation of vacation credits that may be held is 320 hours. Whenever the maximum vacation accumulation is reached, and so long as it continues, the first monthly vacation credit included in such accumulation shall become null and void, and be deemed forfeited by the employee, each time a new monthly vacation credit is added to the accumulation of vacation credits.

G. Vacation Cash-out Option. Each full-time employee shall have the option of “cashing out” up to one hundred (100) hours of vacation, once per fiscal year. However, Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

13 the employee must retain a bank of at least 20 hours of vacation and compensatory combined following the cashout. Cashout requests shall be processed and included on the next available regular paycheck following an approved request to cashout the leave. .

H. Termination of Employment. Except as otherwise herein provided, an employee whose employment is terminated by death, resignation, layoff, or otherwise shall then be paid for the balance of the accumulated vacation credits, at the employee's salary rate in effect at such termination.

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14 ARTICLE VII

SICK LEAVE
SECTION 1. ACCRUAL OF SICK LEAVE. Sick leave with pay shall be allowed and computed on the basis of 3.70 hours per pay period in accordance with the following rules to each full-time employee.

A. The maximum accrual of unused sick leave for an employee shall be 760 hours.

SECTION 2. SICK LEAVE CHARGE RATE. Sick leave shall be charged at the rate of one (1) hour for each hour an employee is absent with pay on sick leave. Increments shall be no less than fifteen (15) minutes.

SECTION 3. SICK LEAVE USAGE. An employee eligible for sick leave pay shall be granted such leave for the following reasons:

A. Personal illness or physical incapacity.

B. Forced quarantine of the employee in accordance with community health regulations.

C. Serious illness of a member of the employee's immediate family, which requires the presence of the employee for a period not to exceed five working days. Immediate family shall be defined as child, spouse, domestic partner, parent of an employee, anyone for whom the employee has legal guardianship, or anyone for whom the employee has been designated as the primary caregiver.

D. Medical or dental appointments
E. Pursuant to the requirements of Labor Code Section 233, at the employee’s option, vacation may be substituted for sick leave when one of the above conditions exists and when the employee has used all accumulated sick leave.

SECTION 4. PERSONAL NECESSITY LEAVE. Each full-time employee shall be afforded the opportunity to use up to 18 hours of sick leave benefits per fiscal year (on a non-accumulative basis) for personal necessity leave, for personal unplanned events, which may need immediate attention.

Personal necessities shall include, but not be limited to, family emergencies, or imminent danger to the employee's home, or other valuable property.

SECTION 5. SICK LEAVE CASH-OUT OPTION. Each full-time employee shall have the option of "cashing out" up to fifty (50) hours of sick leave, once per fiscal year. However, a minimum balance of eighty (80) hours shall be maintained in their accrued sick leave account. This option can Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

15 be exercised at any time during the term of the Agreement. Employees who have in excess of 700 hours on June 1 of each year, may cash out an additional 12 hours of sick leave. Cashout requests shall be processed and included on the next available regular paycheck following an approved request to cashout the leave.

SECTION 6. JOB INCURRED ILLNESS OR INJURY.

A. A full-time employee, absent as a result of a job-incurred illness or a job-incurred injury, shall receive, as temporary disability compensation, the full amount of regular straight time salary or wages which would have been earned from the commencement of said disability and until a doctor's notice is received that the employee is released to return to regular work, or is classified as permanent and stationary. This compensation shall not exceed sixty (60) calendar days, and shall be paid only one time for a particular illness or injury. If the disability for which the benefits were payable continues or recurs due to the same or related causes after returning to work, it will be considered a resumption of the prior disability and no further compensation shall be made, except that which is provided by State Worker's Compensation Laws and applicable long-term disability insurance.

Employees will only be compensated for normal working hours and shall not be entitled to extra pay for hours where they may be receiving medical care during non-scheduled hours (e.g. hospital stays, medical appointments on the weekends, etc.) The above notwithstanding, in the event of temporary disability, extending beyond the first sixty (60) calendar days, the employee shall have the option, in addition to compensation under the Worker's Compensation Laws, to use paid sick leave, up to the number of hours accumulated, and once sick leave is exhausted, may also then elect to draw on any accumulated vacation hours to receive up to the amount of the employee's bi-weekly pay.

SECTION 7. APPROVAL OF SICK LEAVE. Sick leave absence with pay may be taken, provided that the employee has a sufficient balance of accrued sick leave to cover the requested absence.

A. No payment for sick leave shall be made without the approval of the Department Head.

B. If an employee's sick leave absence extends beyond three consecutive working days for reasons of personal illness or injury, or any time abuse of sick leave is suspected and an employee is notified in advance in writing of the requirement, a written statement may be required, certifying that the employee was incapacitated from the performance of their employment duties during the entire term of such absence. The written statement shall be signed by a licensed physician or dentist qualified to render a medical opinion on the illness or injury in question. If an employee's sick leave absence extends beyond five consecutive working days for reasons of personal illness or injury, such written statement from a physician or dentist shall be required. Whenever a physician or dentist written statement is required by the City, the City shall reimburse the employee for any applicable office visit copays incurred.

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16 C. Where an employee's absence due to personal illness or injury extends for more than five consecutive working days, the Department Head, with the approval of the City Manager, may require the employee to submit to one or more examinations, at City expense and by physicians or dentists selected by the City in its sole discretion for the purpose of determining the nature and extent of the employee's disability. The failure or refusal of an employee to submit to any such examination within five days after being requested to do so in and of itself constitutes sufficient and proper grounds for termination of the employee.

D. Upon the employee's return to work following an absence for more than five working days due to illness or injury, an employee shall submit to their Department Head a written statement signed by a qualified physician or dentist certifying that they are physically able to resume work.

E. An employee who has used all sick leave earned and credited, may not have unearned sick leave credit advanced except by order of the City Council.

SECTION 8. COMPENSATION FOR UNUSED SICK LEAVE. The unit value of an employee's unused sick leave shall be eight-hours for each full month of employment. No compensation for unused sick leave accumulation will be paid if termination, for any reason, occurs prior to 60 months of continuous full-time employment.

A. The first full day of sick leave absence in any month shall not be added to or subtracted from the accumulation. Any number of hours of sick leave absence, within an eight-hour day, will be charged against the credit for that day or month. Any number of full days or hours of any one day, more than the first eight hours of paid sick leave absence in any month, shall be charged against the accumulated credit.

B. Except as provided below, a full-time employee upon a regular California Public Employees’ Retirement System (CalPERS) retirement following the completion of 60 or more months of continuous employment with the City of La Palma, shall receive 100 percent (100%) payment for all accumulated sick leave credit, up to a maximum of 320 hours at the salary or wage rate in effect at such retirement. This compensation shall be provided when final verification of retirement is received by the City from CalPERS.

1. Employees who have in excess of 500 hours of accumulated sick leave credit as of July 1, 2011, shall receive, at retirement, 100 percent (100%) payment for all accumulated sick leave credit, up to a maximum of the number of hours accrued as of July 1, 2011, at the salary or wage rate in effect at such retirement. For example, an employee who has an accumulated sick leave balance of 700 hours on July 1, 2011, may cash out up to 700 hours at the time of retirement.

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17 C. Except as provided below, if a full-time employee’s employment is terminated for any reason, other than provided in Section 8 (B), after 60 months of continuous employment, compensation for thirty-five percent (35%) of the maximum of 320 unused sick leave accumulated hours, computed to the nearest whole dollar will be paid.

Compensation shall be based on the hourly rate of pay at the time of termination.

1. Employees who have in excess of 500 hours of accumulated sick leave credit as of July 1, 2011, shall receive, upon separation other than retirement, thirtyfive percent (35%) payment for all accumulated sick leave credit, up to a maximum of the number of hours accrued as of July 1, 2011, at the salary or wage rate in effect at the time of separation. For example, an employee who has an accumulated sick leave balance of 700 hours on July 1, 2011, may cash out up to 245 hours at the time of separation.

D. The individual employees that have in excess of 500 hours of accrued sick leave as of July 1, 2011, as referred to in Subsections B and C in this Section, shall be identified in a Side Letter on July 1, 2011, that identifies the exact accrued sick leave balance for each affected employee as of July 1, 2011. The Side Letter shall be placed in each affected employee’s Personnel File.

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18 ARTICLE VIII

OTHER LEAVE PROVISIONS
SECTION I. PREGANCY, CHILDBIRTH, AND RELATED MEDICAL CONDITION A. A female employee disabled by pregnancy, childbirth, or a related medical condition may take a leave for a reasonable period of time not to exceed four months and thereafter return to work. The employee shall be entitled to utilize any accrued vacation, compensatory time, and/or sick leave during this period of time. “Reasonable period of time” means that period during which the female employee is disabled on account of pregnancy, childbirth, or a related medical condition.

An employee who plans to take a leave pursuant to this section must give the City reasonable notice of the date the leave shall commence and the estimated duration of the leave.

The City will maintain group medical coverage for employees taking pregnancy disability leave, for the entirety of the four-month leave, at the same level and under the same conditions that coverage would have been provided if the employee had not taken the leave.

An employee, with the advice of her physician, may request a temporary transfer to a less strenuous or hazardous position for the duration of her pregnancy where that transfer can be reasonably accommodated. The City is not required to create additional employment that the City would not otherwise have created, nor shall the City be required to discharge any employee, transfer any employee with more seniority, or promote any employee who is not qualified to perform the job.

Under FMLA, any period of incapacity or treatment due to pregnancy, including prenatal care, is a "serious health condition," and therefore leave taken for that purpose will be counted as part of the 12-week total entitlement under FMLA.

The right to take leave under California Family Rights Act (CFRA) is separate and distinct from the right to take pregnancy disability leave under Government Code Section 12945(a).

An employee's own disability due to pregnancy, childbirth, or related medical conditions is not included as a "serious health condition" under CFRA. Thus, at the end of an employee's four-month pregnancy disability leave under Government Code Section 12945(a), the employee may take CFRA leave of up to twelve workweeks for reason of the birth of her child, if the child has been born by that date. There is no requirement that either the employee or child have a serious health condition or that the employee continue to be disabled by her pregnancy, childbirth, or related medical condition in order to take CFRA leave for the birth of the child. CFRA also provides that the City may (but is not required to) allow an employee to use CFRA leave prior to the birth of the child if the employee has used four months of pregnancy disability leave prior to the birth and the employee's health care provider determines that a continuation of the leave is medically necessary. Doing so would not Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

19 require the City to provide more than the amount of CFRA leave to which the employee was otherwise entitled.

Under CFRA, the maximum possible combined leave entitlement for both pregnancy disability leave and CFRA leave for the birth of the child is four months and twelve workweeks. That assumes that the employee is disabled by pregnancy, childbirth, or a related medical condition for four months and then requests and is eligible for a full 12 week CFRA leave for the reason of the birth of her child.

For purposes of determining whether an employee who has taken a pregnancy disability leave (which is also a FMLA leave) and who then wants to take a CFRA leave for the birth of her child has met the CFRA employee eligibility requirements, the 12-month period during which the employee must have worked 1,250 hours is the period immediately preceding the employee's first day of FMLA leave based on her pregnancy, not the first day of the subsequent CFRA leave for reason of the birth of her child.

SECTION 2. BEREAVEMENT LEAVE. A full-time employee shall be granted paid Bereavement Leave of no more than 40 hours in any one instance in the event of the death of a member of the employee's immediate family, consisting of spouse, domestic partner, parents, children, step-children, grandchildren, grandparents, brother or sister, step-brother or step-sister of the employee as well as the parents or grandparents of the employee's spouse or domestic partner. In the event the employee must travel out of state in connection with the bereavement, the leave shall be extended to 45 hours.

SECTION 3. MILITARY LEAVE. An employee shall be entitled to a leave with pay, less any amount the employee receives or is entitled to as compensation by the Federal or State government, for required active duty in the Armed Forces Reserve, after full-time continuous employment by the City for at least 12 months, for a period not to exceed 30 calendar days. A further leave without pay shall be granted if a required encampment extends longer than 30 calendar days. At the conclusion of the military duty, the employee shall be permitted to resume their former position in the City employment. If military leave is taken prior to 12 months of continuous full-time employment, the leave shall be without pay. An employee eligible for paid leave may select the option of receiving full pay and turning over to the City their payment for military service, or may request the difference between the payment for military service and their regular salary.

SECTION 4. PERSONAL LEAVE. Leaves of absence without pay, each not to exceed one calendar month, may be granted by a Department Head in his/her sole discretion. Leaves of absence without pay, each not to exceed one year, may be granted by the City Manager in hers/his sole discretion.

Requests for all leaves of absence without pay shall first be made to the Department Head.

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20 SECTION 5. ABSENCE WITHOUT LEAVE. Any absence from work without leave or without a post-absence acceptable excuse, or pursuant to a right established by this MOU, shall, in and of itself, be sufficient grounds for termination of employment.

SECTION 6. BENEFIT PROVISIONS FOR LEAVES WITHOUT PAY. Any employee on an approved leave without pay for any reason, in excess of 30 days, shall not be entitled to paid City benefits during the time of the absence unless such payment is required by law. The employee shall have the option of continuing one or more benefits at his or her sole expense at the actual rate charged.

SECTION 7. CATASTROPHIC LEAVE. Any employee who has a serious health condition and has exhausted their available paid leaves may be eligible to receive donated leave from other employees under the City’s Catastrophic Leave Program. Any employee may donate sick leave or vacation leave to an eligible employee under the Catastrophic Leave program assuming he/she meets the qualifications to donate as defined in the program.

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21 ARTICLE IX

TRAINING
SECTION 1. REQUIRED TRAINING. An employee who is required by their Department Head to attend a specified off duty training course, shall, upon submission of receipts, receive reimbursement for the following: transportation cost where appropriate, cost of books, course registration, and related expenses directly necessary for the successful completion of the course. Additionally, time engaged in mandated training shall be paid time.

SECTION 2. DESIRABLE TRAINING. Desirable training is defined as off-duty instruction that will be mutually and immediately beneficial to the employee and the City. In accordance with the City’s Tuition Reimbursement Program; prior to enrolling in a class for desirable training, a fulltime employee desiring reimbursement for their expenses shall obtain approval as to course content and its relationship to the employee's employment with the City. In the event the request is approved, which approval shall be in the City’s sole discretion, and upon completion of the course, with a grade of "C" or better, or equivalent grade point, the employee shall submit to his or her Department Head a copy of the official transcript and a receipt for the tuition fee. On approval by the Administrative Services Director, the employee shall then be reimbursed for the cost of tuition, plus up to $200 per semester for the cost of books required for the completion of the course(s) which may then become the property of the City in accordance with the tuition reimbursement policy adopted by the City.

Employees may submit costs for courses and books for reimbursement for up to a maximum annual reimbursement of $2,500. If the employee terminates their employment with the City of La Palma either voluntarily or involuntarily within one year following the date of course completion, all funds reimbursed for such course work shall be repaid to the City by the employee.

SECTION 3. TRAINING CONFERENCES AND SEMINARS. With the approval of the Department Head and the City Manager in their sole discretion, employees may participate in various conferences and seminars. They will be reimbursed on a cost basis after presenting receipts for allowable expenses.

SECTION 4. TRAVEL EXPENSES.

A. Mileage Reimbursement. Approved use of private automobiles on City business will be reimbursed at the standard mileage rate as established by the IRS from time to time. When an employee is travelling from home to a meeting or event, the mileage will be reimbursed either from the employee’s home address or City Hall, whichever is less.

B. Other Costs. Reimbursement of actual and necessary expenses while on City business shall be in accordance with the guidelines established in the City's Administrative Policy Manual. Reimbursement requests must be turned in within 30 days of the end of the fiscal year for reimbursement.

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22 ARTICLE X

GROUP INSURANCE
SECTION 1. MEDICAL PREMIUMS.

A. All employees must enroll in one of the PERS health program plans, unless they submit to the City both: (1) proof of health coverage and (2) sign a health insurance waiver.

Employees who fail to complete both requirements shall not be allowed to utilize their cafeteria plan contributions as described below for any other eligible plans.

B. Medical Plan Premiums.

For full-time employees covered by this Agreement, the City shall pay a maximum of the medical plan premium required by the Public Employees Medical and Hospital Care Act (PEMHCA), which is as follows:

January 1, 2025: $158
January 1, 2026: $160 (estimate)
January 1, 2027: $162 (estimate)
The actual PEMHCA amount will be adjusted annually pursuant to the amounts required by Government Code Section 22892.

C. Fringe Benefit Cafeteria Plans.

The City shall make a monthly fringe benefit contribution to each eligible employee to be used toward the fringe benefit cafeteria plan. These funds shall only be used for eligible plans included with the cafeteria plan. The City's distribution of this monthly composite contribution to those full-time employees who enroll in one of the CalPERS health plans shall be in the following manner.

Effective July 1, 2025
Plan Fringe Benefit PEMHCA Amount Total Combined Benefit Employee Only $509.49 $158 $667.49
Employee + one $998.49 $158 $1,156.49
Employee + two or more $1,257.49 $158 $1,415.49
Effective January 1, 2026
Employee Only $509.49 $160* $667.49
Employee + one $998.49 $160* $1,156.49
Employee + two or more $1,257.49 $160* $1,415.49
Effective January 1, 2027
Employee Only $509.49 $162* $667.49
Employee + one $998.49 $162* $1,156.49
Employee + two or more $1,257.49 $162* $1,415.49
*Estimated
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23 D. Eligibility to enroll in the medical insurance plan provided by the City shall be within 60 days of consecutive, continuous full-time employment with the City. Coverage normally begins the first day of the month following 30 days of consecutive, continuous full-time employment with the City. An employee’s start date and return date of enrollment documents may alter the date when coverage begins. City-paid coverage is maintained during an approved family medical leave act (FMLA) or California Family Rights Act (CFRA) leave regardless of the employee’s paid status.

E. Full-time employees hired before July 1, 2018, who select the option of not enrolling in one of the CalPERS plans, and who meets the conditions outlined in Section 1 (A) of Article X, shall receive $667.49 monthly cash payout. The payment shall be calculated and distributed with the second paycheck of each month. Full-time employees hired on or after July 1, 2018, who select the option of not enrolling in one of the CalPERS plans, and who meets the conditions outlined in Section 1 (A) of Article X, shall forfeit any City contribution towards medical premiums.

1. Full-time employees whose monthly health plan premiums were less than the City contribution outlined in Section 1 (B) and (C) above and were provided the difference in a cash payment before July 1, 2018, shall continue to receive the cash payment unless those employees change from single to dependent coverage.

If the employee opts for dependent coverage, any cash amount they may have been receiving shall be forfeited. The cash payment amounts are not subject to any additional increases to the City’s contribution amounts outlined in Section 1 (B) and (C).

The employee may change from single to dependent coverage at any time, but will be subject to the rules and regulations of CalPERS health programs regarding such reinstatements.

F. Full-time employees separating from the City, as a result of either service or disability retirement, shall be maintained as an insured member of the City group medical plan, as it from time to time exists, with the City paying 100% of the employee only premiums (within the limit described in Section 1 (B) above).

Full-time employees who have at least fifteen years of service and who separate from the City, as a result of retirement due to medical conditions, shall be maintained as an insured member of the City group medical plan, with the City paying an amount equal to 100% of the employee only premiums and fringe benefit contribution. Eligible employees will be covered by this provision up to the age of 65.

If a retiree who currently is eligible to obtain medical insurance coverage, which is generally similar or better in coverage and benefits, at no cost to the retiree, the City may terminate its obligation to provide medical insurance benefits to that retiree. It is understood that medical insurance plans differ from place to place and that individual items within the plan may vary; it is not intended by this language that the plans need to be identical in coverage.

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24 G. Pursuant to CalPERS, the effective date of termination of health insurance coverage for a full-time employee separating from the City for reasons other than those mentioned in Article X, Section 1 (G) above, is the first of the second month following separation.

H. Except as set forth in Sections 1 (A) through 1 (C) above, the City shall not pay directly or indirectly for or reimburse to any affected employee, any costs or expenses related to medical care or hospitalization incurred by an affected employee or his or her dependents after the effective date of coverage under the CalPERS plan.

SECTION 2. DENTAL PLAN.

A. A full-time employee shall enroll in any dental insurance plan provided by the City.

Any such dental plan shall also provide orthodontic coverage.

B. The City shall pay 100% of the premium for a full-time employee and his or her dependents.

C. Eligibility to enroll in any group dental insurance plan provided by the City shall be following 30 days of consecutive continuous employment with the City.

D. If a full-time employee is enrolled in the City’s dental plan and that plan pays for crowns, the City shall pay up to 30% of the reasonable and customary amount charged for the crown, upon presentation of a billing statement or statement of benefits from the dentist showing the amount charged and the amount paid by insurance, if applicable. At no time shall the reimbursement from the City exceed the employee’s “out-of-pocket” costs for the received services nor shall the combination of insurance and the City reimbursement exceed 80% of the reasonable and customary amount charged for the services. Child dependents are covered through age 25.

E. The City will continue to provide employees the option of choosing between HMO and PPO plans.

SECTION 3. VISION PLAN. An employee and his or her dependents may receive up to $400 per fiscal year for vision care expenses relating to services and supplies performed or prescribed by an optometrist, ophthalmologist or dispensing optician. Such benefits may include an annual eye exam (including refraction), lenses, and frames, and corrective eye surgery. For the purpose of child dependents, dependents shall be defined pursuant to the dependent definition of the City’s medical plan provider.

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25 SECTION 4. DISABILITY INSURANCE. All full-time employees shall be enrolled in the longterm disability plan as provided by the City, with the City paying 100% of the premium, and with the plan having a 30-day elimination period.

SECTION 5. LIFE INSURANCE. The City shall provide life insurance for full-time employees in the amount of $100,000, $3,000 for spouse, and $2,000 per dependent.

SECTION 6. FLEXIBLE BENEFITS PLAN. The City shall offer an IRS Flexible Benefits Plan to all full-time employees in the bargaining unit for the purposes of pre-tax payroll deductions for child care and/or eligible medical expenses. The Plan may be changed or eliminated by the City in its sole discretion.

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26 ARTICLE XI

RETIREMENT
The City shall provide a three tier retirement system as follows:

A. Tier One Miscellaneous Employees (Hired before July 1, 2011) B. Tier Two Miscellaneous Employees (Hired as new City of La Palma Employees on or after July 1, 2011, but prior to January 1, 2013, or employees with prior CalPERS service who are considered Classic Employees under PEPRA) C. Public Employee Pension Reform Act (PEPRA) Miscellaneous Employees (Hired on or after January 1, 2013)
Plan Benefit Computed On City Pays Employee Pays
Tier One
Misc.

2.7% @ 55 Single highest year ER
Contribution
EE
Contribution
Tier Two
Misc.
2% @ 60 Highest Average 36
consecutive months
ER
Contribution
EE
Contribution
PEPRA Misc. 2% @ 62 Highest Average 36
consecutive months
*50% of
Normal Cost
*50% of
Normal Cost
*Pursuant to California Government Code
D. All employee payments shall be reported as normal contributions and shall be credited to each member’s account.

E. All computations shall be according to California Public Employees Retirement Law (PERL).

F. All of these retirement plans shall provide the CalPERS Level 4 Survivor Benefit.

G. All employees in this group shall make a 1.45% Medicare employee contribution regardless of their hire date. The City matches this contribution.

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27 ARTICLE XII

DEFERRED COMPENSATION
The City shall provide payroll deduction and deposit of amounts authorized by an employee desiring to participate in the deferred compensation plan selected by the City Manager. LPGEA shall select a member to participate in developing a recommendation to the City Manager for the choice of carrier. The City Manager’s selection of the carrier shall be final. Changes to withholding may be made four (4) times per calendar year (A request to change withholding for one pay period and return it to the prior withholding the next pay period is considered two requests).

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28 ARTICLE XIII

UNIFORMS
SECTION 1. The City will provide the following uniforms for an employee in the Maintenance and Water Divisions.

A. Ten sets, comprised of shirt, shorts, and trousers for employees working five (5) day workweeks. Employees shall keep on hand a pair of uniform trousers in their locker at all times. Further, it shall be at the Department Head's discretion to determine when uniform trousers must be worn for particular assignments.

SECTION 2. BOOT ALLOWANCE.

A. The City shall provide an employee in the Maintenance and Water Divisions an annual cash boot allowance of $300 per fiscal year. At all times while on duty, those employees shall wear approved steel-toed safety boots and they must be kept in good repair.

B. The boot reimbursement shall be paid in one lump sum with the first paycheck in July.

C. For newly hired employees in the Maintenance and Water Divisions, the first year boot allowance shall be paid in full with the new employee’s first paycheck. However, in the event the employee is unsuccessful in satisfactorily performing job duties within their first year of employment, a pro-rated amount of the boot allowance shall be due to the City.

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29 ARTICLE XIV

COMPLETION OF MEET AND CONFER
SECTION 1. EXCLUSIVITY OF SCOPE OF MOU. It is the express understanding of the parties hereto that this Memorandum of Understanding represents the sole and complete understanding between the parties, and that this Memorandum of Understanding shall govern the entire relationship between the parties and shall be the sole source of any rights which may be asserted hereunder. In this regard, the parties shall not be obligated or required to meet and confer, except by their mutual consent, with respect to any subject or matter, whether referred to or covered by this Memorandum of Understanding or not, even though each subject or matter may not have been within the knowledge or contemplation of either or both the City or the Employees and/or the LPGEA at the time they met and conferred or executed this Memorandum of Understanding, and even though subjects or matters were proposed by one of the parties and later withdrawn.

SECTION 2. RESERVATION OF CITY'S RIGHTS. The parties hereto further expressly understand that all rights not clearly and expressly limited by this Memorandum of Understanding are expressly reserved to the City, even though not enumerated. The express provisions of this Memorandum of Understanding constitute the only limitations upon the City's rights to determine, implement, supplement, change, alter, modify, or discontinue, in whole or in part, any term or condition of employment, or adopt any policy, rule, regulation, program or practice as the City deems in its sole discretion to be necessary or appropriate; provided, however, that the City shall comply with all Federal and State laws relating to employee rights, opportunities, and benefits except for the requirement to meet and confer with regard to such changes, alterations, modification or exercise of such reserve power, which right has been expressly waived by the Employees and the LPGEA.

SECTION 3. OTHER PROVISIONS. If, at any point during the term of this Memorandum of Understanding, the City experiences, or it becomes known that the City will experience, a major revenue loss in the General Fund from a single or combined source (as defined below), the City retains the sole and exclusive option to re-open the MOU to meet and confer in regards to, but not limited to, salary and wage schedules, benefit schedules, and staffing levels.

Circumstances which may determine such revenue losses may include, but are not limited to, new legislation, loss of a major sales tax provider(s), certain business industry fluctuations, and any other unforeseen event affecting any or several of the City’s General Fund revenue sources.

During the first twelve (12) months of this MOU, the parties agree to reopen the MOU regarding the timing of employee leave benefit payments. The intent of this reopener is to evaluate potential changes to payment timing that could mitigate unintended tax implications under IRS rules governing constructive receipt. The parties acknowledge that this reopener does not obligate the City to change and/or modify any provisions of the MOU during the term of the MOU. Any changes/modifications to the MOU as a consequence of this reopener must be by mutual agreement. The failure to reach Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

30 mutual agreement is not subject to the MOU grievance process; unfair labor practice proceedings before the Public Employment Relations Board; and/or proceedings in the Superior Court.

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31 ARTICLE XV

GRIEVANCE PROCEDURE
SECTION 1 DEFINITION A "grievance" is a formal, written allegation by a grievant that they have been adversely affected by an existing violation, misinterpretation, or misapplication of the specific provisions of the Memorandum of Understanding and/or provisions of the Personnel Rules and Regulations. Other matters for which a special method of review is provided by law, ordinance, resolution, or by administrative regulations and procedures of the City, are not within the scope of this procedure. This procedure is not to be used in lieu of the Disciplinary Procedure set forth in this Memorandum of Understanding.

SECTION 2 PROCEDURE
A. Informal Resolution. Every effort shall be made to resolve a grievance through discussion between the employee and their immediate supervisor. It is the spirit and intent of this procedure that all grievances are settled quickly and fairly without subsequent discrimination against employees who may seek to adjust a grievance. Every effort should be made to find an acceptable solution at the lowest level of supervision. Within fifteen (15) calendar days after a grievant knew, or by reasonable diligence should have known, of the condition upon which a grievance may be based, the grievant shall attempt to resolve it by an informal conference with the grievant's immediate supervisor.

B. If the problem cannot be resolved between the employee and the supervisor, the employee may, within ten (10) calendar days from the date of receiving the answer from their supervisor, request and be granted an interview with the Division Manager, if one exists, in order to discuss the grievance.

C. If the Division Manager and employee cannot reach a solution to the grievance, the employee may, within ten (10) calendar days from the date of receiving the answer from the Division Manager, request, in writing, and be granted an interview with the Department Head.

D. The Department Head shall render their decision in writing within fifteen (15) calendar days of receiving the appeal. If the Department Head and employee are unable to arrive at a satisfactory solution, the employee may, within ten (10) calendar days from the date of the decision by the Department Head, submit a written appeal to the City Manager.

E. The City Manager shall review the grievance and respond to the employee within twenty (20) calendar days of receiving the appeal. The response shall be in writing and will be considered an expression of management's viewpoint, and shall be the final administrative review.

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32 F. If the time limits for employees' appeals at any step should elapse, the grievance shall be considered withdrawn. Time limits may be extended by mutual consent. If the City fails to respond within the prescribed time limits, the grievance will be deemed to have been denied and the employee may go to the next step. If the City Manager fails to respond within the prescribed time limit, the grievance will be deemed to have been denied and the employee will be deemed to have exhausted their administrative remedy.

G. The employee may request the assistance of another person of their own choosing in preparing and presenting their appeal at any level of review. In the event the employee desires the presence of a representative who is an employee of the City, they shall make such request through the supervisor and the supervisor shall make the necessary arrangements for the employee representative to be present.

H. The employee and/or their representative may use a reasonable amount of work time as determined by the appropriate supervisor or Department Head in presenting the appeal.

However, no employee shall absent themselves without first being excused by their supervisor.

I. No employee shall be required to be represented by an employee organization in processing a grievance.

J. Employees shall be assured freedom from reprisal for using the grievance procedures by both the City and the employee organization.

K. The settlement terms of a grievance which is processed by an employee individually or by a formally recognized employee organization shall not conflict with the express provisions of a Memorandum of Understanding between the City and the formally recognized employee organization for such unit, if any.

L. A group grievance may be filed when one (1) set of circumstances or occurrences affects more than one (1) employee in the same manner or to the same extent. The group may file one (1) document which all members of the group have read and signed. Members of the group shall be limited to those who have signed the grievance. The resolution of a group grievance may not be consistent among all employees in the group grievance due to differences in the circumstances or occurrences that brought about the grievance.

A group grievance affecting all members of an employee organization may be brought by the employee organization itself. In such case the procedure shall be commenced directly at the City Manager level within fifteen (15) working days after authorized representatives of the employee organization knew or by reasonable diligence should have known of the condition giving rise to the grievance and shall be subject to all applicable time limitations and the provisions set forth above.

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33 M. Performance evaluations are not grievable. However, an employee who disagrees with all or part of an evaluation has the right to attach comments pertaining to the areas of disagreement, which become a formal part of the evaluation.

N. The grievance shall be submitted on a form prescribed by the Personnel Officer, and shall contain (1) the specific situation, act or acts alleged to be unfair, (2) the alleged inequity or damage suffered by the employee, and (3) the relief sought.

O. Copies of grievance forms and case files will not be placed in employee personnel files, but will be maintained in separate files in the Human Resources Division.

P. In the event a “calendar day” deadline falls on a Saturday, Sunday, or observed City holiday (in which the City Hall is closed), the “calendar day” deadline shall roll-over to the next business day in which City Hall is open.

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34 ARTICLE XVI

LAYOFF PROCEDURE
SECTION 1: INTENT
A. Whenever in the judgment of the City Council it becomes necessary in the interest of the economy, or because the necessity for a position no longer exists, the City Council may abolish any position for employment in the competitive service; and the employee holding such position for employment may be laid off without taking disciplinary action and without the right of appeal.

B. The layoff procedure is intended to give a consideration of both seniority and competency whenever the layoff of employees is necessary.

SECTION 2: PROCEDURE
A. Determination of need for layoff will be made by the City. Classifications to be affected and the number of employees included will be determined by the City.

B. Employees to be laid off shall be given at least fourteen (14) days prior notice (or two weeks’ pay in lieu of notice).

C. If an employee in an affected classification is a probationary appointment, that employee will be selected to be laid off, subject to bumping, and reemployment rights if they are a promotional probationary employee. (Any temporary, seasonal, provisional and/or parttime employees in the classification shall be laid off first.) D. Employees who have successfully completed probation in the affected classification will be ranked by 1) seniority, and 2) competency in the classification.

E. The Department Head, subject to review by the City Manager, will determine, based upon official personnel records, and/or qualified testing procedures, where applicable, the individual selected for layoff in the classification. The Department Head will utilize a combination of the seniority and competency of the individual in making this determination as set forth in the following example:

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35 Seniority Ranking
in Classification
(“1” Having Most
Seniority)
Competency
Ranking
(“1” Being Most
Competent)
Average Ranking
(Seniority Ranking +
Competency Ranking,
Divided by 2)
Employee A 1 2 3 ÷ 2 = 1.5
Employee B 2 3 5 ÷ 2 = 2.5
Employee C 3 1 4 ÷ 2 = 2
Employee B (with the higher average total) would be the employee selected to be laid off in this classification. If Employee B chooses to bump into a lower classification, they would be given a competency factor equal to the average for the new classification. In the event of equal average ranking scores, competency will be used to determine selection.

SECTION 3. BUMPING RIGHTS
An individual laid off from a particular classification may "bump" into a classification in their Department for which they are qualified where the person has held the position previously with the City. After an employee is informed of an impending layoff or "bump down" they must inform the City Manager within five working days of their intent to take the option of the layoff or the "bump down." If an employee chooses to “bump down,” the employee shall receive the highest salary in the new range that does not exceed the employee's rate of pay immediately prior to reduction and shall retain his or her merit increase eligibility date. The process will be repeated at the next classification level where an employee bumps in and creates an overage in that classification.

SECTION 4. REEMPLOYMENT RIGHTS
The names of probationary and regular employees who have been laid off shall be placed on appropriate reemployment lists in the order of their competency, from highest to lowest. Such names shall remain thereon for a period of one year unless such persons are sooner reemployed.

When a reemployment list is to be used to fill vacancies, the Personnel Officer shall certify from the top of such lists the number of names equal to the number of vacancies. An employee who is reemployed shall receive credit for former service for purposes of seniority, benefit compensation, and salary advancement.

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36 ARTICLE XVII

LPGEA AND EMPLOYEE RIGHTS
SECTION 1. EMPLOYEE RIGHTS. The City shall not hinder or discipline an employee for exercising any rights or benefits provided in the Memorandum of Understanding.

SECTION 2. PAYROLL DEDUCTION. Membership dues of LPGEA members in this Representation Unit shall be deducted by the City from the pay warrants of such members. The City shall promptly transmit the dues and insurance premiums so deducted to LPGEA.

SECTION 3. USE OF BULLETIN BOARDS. Space shall be made available to LPGEA on departmental bulletin boards within the Representation Unit provided such use does not interfere with the needs of the department.

SECTION 4. EMPLOYER-EMPLOYEE RELATIONS RESOLUTION. Resolution 2013-04 was adopted by the City Council on February 5, 2013, repealing Resolution 71-7 and adopting new rules relating to Employer-Employee Organization regulations. This was done after all parties met and conferred in good faith and agreed to the terms of the new rules.

SECTION 5. AGENCY SHOP
A. Legislative Authority. The parties mutually understand and agree that as a result of State of California adoption of SB 739, all full-time unit employees represented by the La Palma General Employees Association (hereinafter “Association”) have the right to join or not join the Association. However, the enactment of a local “Agency Shop” requires that as a condition of continuing employment, employees must either join the Association or pay to the Association a service fee in lieu thereof. Such service fee shall be established by the Association, and shall not exceed the standard initiation fee, periodic dues and general assessments of the Association.

B. Union/Association Dues/Service Fees.
1) The Administrative Services Department shall provide all employees upon hiring with an authorization notice advising them that the City has entered into an Agency Shop agreement with the Association, and that all employees subject to the Agreement must either join the Association, pay a service fee to the Association, or execute a written declaration claiming a religious exemption from this requirement.

Such notice shall include a form for the employee’s signature authorizing payroll deduction of Association dues or a service fee, or a charitable contribution equal to Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

37 the service fee. Said employees shall have 14 calendar days from the date they receive the form to fully execute it and return it to the Administrative Services Department. 2) If the form is not completed properly and returned within 14 calendar days, the City shall commence and continue a payroll deduction of service fees from the regular biweekly paychecks of such employee. The effective date of Association dues, service fee, or charitable contribution shall begin no later than the first full pay period after receipt of the authorization form.
3) The employee’s earnings must be sufficient after the other legal and required deductions are made to cover the amount of the dues or fees authorized. When an employee is in a non-pay status for an entire pay period, no withholding will be made to cover the pay period from future earnings. In the case of an employee in a non-pay status only during part of the pay period, whose salary is not sufficient to cover the full withholding, no deduction shall be made. In the case of an employee who is receiving catastrophic leave benefits during a pay period, no deduction shall be made.

In this connection, all other legal and required deductions (including health care and insurance deductions) have priority over Association dues and service fees.

C. Religious Exemption.
1) Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations,shall not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, in lieu of periodic dues, initiation fees, or agency shop fees, to pay sums equal to the dues, initiation fees, or agency shop fees to a nonreligious, non-labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from the following: City of Hope, American Cancer Society, and American Red Cross. Charitable contributions shall be by regular payroll deductions only in order to qualify as a condition of continued exemption from the requirement of financial support to the Association. 2) Declarations of or applications for religious exemption and any other supporting documentation shall be forwarded to the Association within 14 calendar days of receipt by the City. The Association shall have 14 calendar days after receipt of a request for religious exemption to challenge any exemption granted by the City.

If challenged, the deduction to the charity of the employee’s choice shall commence but shall be held in escrow pending resolution of the challenge.

D. Recision. The agency shop provision in this memorandum of understanding may be rescinded by a majority vote of all the employees in the unit covered by the memorandum of understanding, provided that:

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38 1) A request for such a vote is supported by a petition containing the signatures of at least 30 percent of the employees in the unit;
2) The vote is by secret ballot;
3) The vote may be taken at any time during the term of the memorandum of understanding, but in no event shall there be more than one vote taken during that term. Notwithstanding the above, the City and the Association may negotiate, and by mutual agreement provide for, an alternative procedure or procedures regarding a vote on an agency shop agreement.
4) If a “recision vote” is approved by unit members during the term of a current MOU, the Association agrees not to petition for or seek Agency Shop status for the remainder of the current MOU.

E. Records. The Association shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City, and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an operating statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or by a certified public accountant.

F. Indemnification. The Association shall indemnify, defend, and hold the City harmless against any liability arising from any claims, demands, or other action relating to the City’s compliance with the agency fee obligation, including claims relating to the Association’s use of monies collected under these provisions. The City reserves the right to select and direct legal counsel in the case of any challenge to the City’s compliance with the agency fee obligation, and the Association agrees to pay any attorney, arbitrator or court fees related thereto.

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39 ARTICLE XVIII

INTEGRATION AND CONSTRUCTION
This Memorandum of Understanding represents the entire understanding of the parties hereto as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with respect to those matters covered by this Memorandum of Understanding. This Memorandum of Understanding shall be construed as if drafted by all of the parties hereto.

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40 ARTICLE XIX

NONDISCRIMINATION
SECTION 1. The City and the La Palma General Employees Association agree that the provisions of this Memorandum of Understanding shall be applied to employees without discrimination to individuals in a Protected Class as defined in Article IV, Section 1.

SECTION 2. LPGEA shall not discriminate in membership or representation on any basis cited in Section 1 of this Article.

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41 ARTICLE XX

SEPARABILITY
In the event that any provisions of this Memorandum of Understanding are declared invalid by any court of competent jurisdiction, such decision shall not invalidate the entire Memorandum of Understanding, it being the express understanding of the parties hereto that all other provisions not declared invalid shall remain in full force and effect.

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42 ARTICLE XXI

MAINTENANCE OF MEMBERSHIP
All Confidential employees who voluntarily choose to become members of the Association shall remain members of the Association, except that these employees may withdraw from the Association by written notice to the Association and the City during the thirty (30) days prior to the expiration of this Agreement.

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43 ARTICLE XXII

DISCIPLINARY PROCEDURE
I. AUTHORITY TO DISCIPLINE
The City Manager and Department Heads are authorized to take disciplinary action regarding employees under their control in accordance with, and within the limits of these rules. Every supervisor shall assist their superiors in achieving sound discipline, and acceptance of a supervisory position shall constitute acceptance by that employee of the corresponding duties and responsibilities, including those disciplinary in nature. Failure to take disciplinary action when appropriate shall reflect on the performance of the supervisor or supervisors involved.

II. CAUSE FOR DISCIPLINE
Each of the following constitutes cause for discipline of an employee. This is not an exclusive list but is provided as a guideline. It is the intent of these rules, however, to include as a cause for discipline any action or non-action by an employee which impedes or disrupts the performance of the City and its organizational component units, is detrimental to employee or public safety, violates properly established rules and procedures, or adversely affects the reputation of the City and its officers or employees.

A. Examples of causes for discipline include, but are not limited to:

1. Any violation of any written rule or regulation promulgated by City related to conduct or performance.

2. Fraud in securing appointment.

3. Incompetency.

4. Inefficiency.

5. Inexcusable neglect of duty.

6. Dishonesty or lying to a supervisor or superior.

7. Violation of any law relating to conflicts of interest, whether contractual or financial.

8. Being under the influence of or using alcohol or drugs on duty, except for prescription drugs provided the Department Head is informed of all warnings on the prescription or drug and provided the employee complies with such warning.

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44 9. While on duty, being in possession of, selling, or using narcotics or any contraband substance.

10. Unexcused Absence.

11. Conviction of a felony or conviction of a misdemeanor involving moral turpitude. A plea or verdict of guilty or nolo contendere to a charge of a felony or any offense involving moral turpitude is deemed to be a conviction within the meaning of this Section.

12. Participating in a strike, work stoppage, slowdown, or a sickout, except as authorized by law.

13. Defrauding the City by making a false claim for compensation, benefits, or reimbursements.

14. Making a false Workers Compensation claim against the City.

15. Improper political activity which prevents the employee or other employees from the efficient performance of employment with the City, or which has a disruptive effect on the efficiency or integrity of the City service or the department in which such employee is employed.

16. Failure or refusal to cooperate with supervisory personnel or other employees.

17. Misuse or misappropriation of City property or funds.

18. Gambling for money or articles of value on City property or during working hours.

19. Tardiness.

20. Abuse of sick leave privileges, including but not limited to reporting sick when not sick, and obtaining sick leave pay falsely or under false pretenses.

21. Excessive absenteeism, which impairs the City's ability to provide services or function effectively or efficiently.

22. Refusal to take and subscribe any oath or affirmation, which is required by law or these rules in connection with his or her employment.

23. Refusing to report on official call in an emergency.

24. Violation of departmental rules and regulations.

Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

45 25. Intentionally misrepresenting information or facts in any statement, declaration or affidavit duly required of any employee.

26. Insubordination. Insubordination shall be defined as failure or refusal to carry out an order or directive of a superior.

27. Any dishonest or wrongful conduct, act or omission, either during or outside of duty hours.

28. Asking, receiving, or agreeing to receive any bribe, gratuity, or reward of any kind upon any understanding that any employee's action shall be influenced thereby, or shall be given in any particular manner, or upon which any employee may be required to act in the employee's capacity; or attempting by menace, deceit, suppression of truth, or any corrupt means to influence any employee to commit any act, conduct or omission which is clearly inconsistent, incompatible, in conflict with, or inimical to the best interests of the City.

29. Failure to observe or comply with safe working standards, to endanger, to injure, or to damage public property or the private property of any employee or member of the public through negligent, improper or careless conduct or use of equipment; or to permit such actions on the part of any employee under his or her supervision or control.

30. Conduct disrespectful to the public, elected and appointed City officials, supervisors, superiors, Department Heads, or members of City boards or commissions.

B. In the event that the City imposes disciplinary action for cause, including but not limited to any of the above acts and omissions, the employee shall have the right to contest or seek review of the disciplinary action or the basis thereof, in accordance with procedures set forth in Section 4 and 5.

III. TYPES OF DISCIPLINARY ACTION
Disciplinary actions include reprimands, suspensions, demotions, and dismissal, as defined below:

A. Verbal Reprimand. An oral warning that may be given to the employee in the event that the City Manager or their designee determines that a deficiency in performance or conduct is not of sufficient magnitude to warrant a more formal disciplinary action. A confidential written record may be made of such conferences and placed in the employee's file with a copy provided to the employee.

Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

46 B. Written Reprimands. A written statement from the City Manager or their designee to the employee relating to an action or omission which meets any of the grounds for disciplinary action listed in these rules, indicating that there is cause for dissatisfaction with the employee's services and that further disciplinary measures may be taken if the cause is not corrected. The written statement shall be placed in the employee's file, with a copy provided to the employee.

C. Suspension. The temporary separation of the employee from City service without pay for disciplinary purposes for a period not to exceed thirty (30) calendar days per occurrence.

D. Demotion. A change in employment status from one position to another having a lower rate of pay and/or a change in duties which are allocated to a class having a lower maximum rate of pay. The demotion may be temporary or permanent.

E. Dismissal. The discharge of the employee from City service for disciplinary purposes.

IV. DISCIPLINARY PROCEDURES
A. Non-Appealable Disciplinary Actions. Verbal and Written reprimands are not subject to administrative review or appeal. However, the employee has the right to place in their file a written response or rebuttal to any confidential written record of verbal reprimand or written reprimand, provided that such response or rebuttal is submitted for inclusion in the file within thirty (30) days of the employee's receipt of the confidential written record.

B. When a regular employee in the competitive service is to be suspended, demoted, or dismissed, a preliminary written notice of the proposed action shall be prepared by the Department Head, reviewed by the City Manager or their designee, and then delivered to the employee. The written notice shall include:

1. The charges against the employee and reasons for the proposed disciplinary action to be taken, if any.

2. The proposed disciplinary action to be taken, if any.

3. A statement advising the employee that, before any proposed disciplinary action takes effect, the employee or his or her representative has the right to respond orally or in writing within five (5) working days from the employee's receipt of the written notice.

All charges filed against a regular employee shall be documented in clear and concise language. The employee or their representative shall be given an opportunity to review the documents or materials upon which the proposed disciplinary action is based and, if practicable, shall be supplied a copy of the documents.

Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

47 Within ten (10) working days after the employee has had the opportunity to respond, the City Manager or their designee shall notify the employee in writing of any disciplinary action to be taken and the effective date of such disciplinary action.

V. APPEAL PROCEDURES
A. Any regular employee in the classified service shall have the right to appeal any termination, suspension of forty (40) hours or more, reduction in salary, or non-probationary demotion. The appeal process shall not be applicable to verbal and written reprimands, suspensions of less than forty (40) hours, probationary demotions, performance evaluations, and denial of merit increases. An employee desiring to appeal the appointing authority’s decision shall have ten (10) calendar days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the City Manager and received in the City Manager’s Office so that the same is date stamped within a 10 day period. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for failure is shown, the action of the appointing authority shall be considered conclusive and shall take effect as prescribed. If the employee files an appeal and follows the procedures described above, an appeal hearing shall be established as follows:

The American Arbitration Association shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee. Within ten (10) days following receipt of the list of hearing officers, the parties shall meet to select the hearing officer. The parties shall alternately strike one name from the list of hearing officers (the right to strike the first name to be determined by lots) until one name remains, and that person shall be the hearing officer.

B. Where practicable, the date for a hearing shall not be less than 20 calendar days, nor more than 60 calendar days, from the date of filing of the appeal with the City Manager. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date and place of the hearing.

C. All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee, open the hearing to the public.

D. Subpoenas and subpoenas duces tecums pertaining to a hearing shall be issued at the request of either party, not less than 7 calendar days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officers.

E. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

48 itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded.

The hearing officer shall not be bound by technical rules of evidence.

F. Each party shall have their rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the employee does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary.

G. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:

1. The party imposing discipline shall be permitted to make an opening statement;

2. The appealing party shall then be permitted to make an opening statement;

3. The party imposing disciplinary action shall produce the evidence on their part; the City bears the burden of proof and burden of producing evidence;

4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof, the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;

5. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case;

6. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.

H. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. They shall base their findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in their discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason they believe to be important to reaching a fair and proper decision. The hearing officer shall render their judgment as soon after the conclusion of the Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

49 hearing as possible and in no event later than 30 days after conducting the hearing. Their decision shall set forth which charges, if any, are sustained and the reason therefore. The opinion shall set forth findings of fact and conclusions.

I. The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. They may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee. The hearing officer may not recommend for discipline more stringent than that issued by the Department Head.

The hearing officer’s opinion and recommendation shall be filed with the City Manager, with a copy sent to the charged employee, and shall set forth their findings and recommendations.

If it is a dismissal hearing and a dismissal is not the hearing officer’s recommendation, the opinion shall set forth the date the employee is recommended to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action.

J. Within thirty (30) days of the receipt of the hearing officer’s findings and recommendation, and transcript (which is optional only by the mutual consent of the City and the employee), whichever date is later, the City Manager, or their designee, shall adopt, amend, modify, or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision, which modifies or rejects the recommendation of the hearing officer, the City Manager, or their designee, shall order and read the transcript to the Third Party Advisory Process. Prior to making a decision, which supports the hearing officer, the City Manager, or their designee, shall not conduct a de novo hearing. The City Manager, or their designee, may, at their option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Manager, or their designee,shall be final and conclusive. Copies of the City Manager’s or their designee’s decision, including the hearing officer’s recommendation(s), shall be filed where appropriate, including the employee’s personnel file, unless no discipline is upheld by the City Manager.

K. The decision of the City Manager, or their designee, shall be final and conclusive.

Copies of the City Manager’s or his/her designee’s decision, including the hearing officer’s recommendation(s), shall be filed where appropriate, including the employee’s personnel file, unless no discipline is upheld by the City Manager.

L. Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties, which result in an arbitration fee.

M. In the case of suspension, demotion, reduction in salary, or dismissal prescribed by the City Manager, the time of such suspension, demotion, or dismissal shall be effective from Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

50 the first day after such delivery of said decision or shall relate back to and be effective as of the date the employee was disciplined pending hearing before and decision by the City Manager, or his/her designee, whichever is applicable. If discipline imposed resulted in loss of pay, and the decision results in reduction or elimination of loss of pay, the pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate.

N. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.

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51 ARTICLE XXIII

IMPLEMENTATION
This Memorandum of Understanding is subject to approval by the City Council of the City as implemented by appropriate resolution(s) of the City Council.

LA PALMA GENERAL EMPLOYEES CITY OF LA PALMA

ASSOCIATION
_____________________________ _________________________________ Jesus Fernandez, President Michael J. Egan, Interim City Manager Dated: Dated:

Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA April 30, 2025
Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D May 1, 2025

Attachment “A”
0 Step A Step B Step C Step D Step E Step F Step G
Account Clerk
Annual 49,701.02 52,186.07 54,795.37 57,535.14 60,411.90 63,432.50 66,604.12 Monthly 4,141.75 4,348.84 4,566.28 4,794.60 5,034.33 5,286.04 5,550.34 Biweekly 1,911.58 2,007.16 2,107.51 2,212.89 2,323.53 2,439.71 2,561.70 Hourly 23.8947 25.0895 26.3439 27.6611 29.0442 30.4964 32.0212 Accounting Technician
Annual 62,100.35 65,205.37 68,465.64 71,888.92 75,483.36 79,257.53 83,220.41 Monthly 5,175.03 5,433.78 5,705.47 5,990.74 6,290.28 6,604.79 6,935.03 Biweekly 2,388.48 2,507.90 2,633.29 2,764.96 2,903.21 3,048.37 3,200.78 Hourly 29.8559 31.3487 32.9162 34.5620 36.2901 38.1046 40.0098 Annual 52,949.13 55,596.59 58,376.42 61,295.24 64,360.00 67,578.00 70,956.90 Monthly 4,412.43 4,633.05 4,864.70 5,107.94 5,363.33 5,631.50 5,913.08 Biweekly 2,036.51 2,138.33 2,245.25 2,357.51 2,475.38 2,599.15 2,729.11 Hourly 25.4563 26.7291 28.0656 29.4689 30.9423 32.4894 34.1139 Code Enforcement/Business License Officer
Annual 64,869.23 68,112.69 71,518.33 75,094.24 78,848.95 82,791.40 86,930.97 Monthly 5,405.77 5,676.06 5,959.86 6,257.85 6,570.75 6,899.28 7,244.25 Biweekly 2,494.97 2,619.72 2,750.70 2,888.24 3,032.65 3,184.28 3,343.50 Hourly 31.1871 32.7465 34.3838 36.1030 37.9082 39.8036 41.7937 Custodian
Annual 43,680.00 45,864.00 48,157.20 50,565.06 53,093.31 55,747.98 58,535.38 Monthly 3,640.00 3,822.00 4,013.10 4,213.76 4,424.44 4,645.66 4,877.95 Biweekly 1,680.00 1,764.00 1,852.20 1,944.81 2,042.05 2,144.15 2,251.36 Hourly 21.0000 22.0500 23.1525 24.3101 25.5256 26.8019 28.1420 Engineering Technician
Annual 68,523.28 71,949.44 75,546.92 79,324.26 83,290.48 87,455.00 91,827.75 Monthly 5,710.27 5,995.79 6,295.58 6,610.36 6,940.87 7,287.92 7,652.31 Biweekly 2,635.51 2,767.29 2,905.65 3,050.93 3,203.48 3,363.65 3,531.84 Hourly 32.9439 34.5911 36.3206 38.1367 40.0435 42.0457 44.1480 Human Resources Specialist
Annual 63,655.07 66,837.83 70,179.72 73,688.70 77,373.14 81,241.79 85,303.88 Monthly 5,304.59 5,569.82 5,848.31 6,140.73 6,447.76 6,770.15 7,108.66 Biweekly 2,448.27 2,570.69 2,699.22 2,834.18 2,975.89 3,124.68 3,280.92 Hourly 30.6034 32.1336 33.7402 35.4273 37.1986 39.0586 41.0115 Lead Maintenance Worker
Annual 62,591.20 65,720.76 69,006.80 72,457.14 76,080.00 79,884.00 83,878.20 Monthly 5,215.93 5,476.73 5,750.57 6,038.10 6,340.00 6,657.00 6,989.85 Biweekly 2,407.35 2,527.72 2,654.11 2,786.81 2,926.15 3,072.46 3,226.08 Hourly 30.0919 31.5965 33.1763 34.8352 36.5769 38.4058 40.3261 La Palma General Employees Association
Classification and Salary Tables
July 1, 2025 to June 30, 2026
Pursuant to Article III, Section 7A of the current MOU
Administrative Assistant
Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

Attachment “A”
1 Step A Step B Step C Step D Step E Step F Step G
Lead Utility Operator
Annual 66,599.72 69,929.71 73,426.20 77,097.51 80,952.38 85,000.00 89,250.00 Monthly 5,549.98 5,827.48 6,118.85 6,424.79 6,746.03 7,083.33 7,437.50 Biweekly 2,561.53 2,689.60 2,824.08 2,965.29 3,113.55 3,269.23 3,432.69 Hourly 32.0191 33.6201 35.3011 37.0661 38.9194 40.8654 42.9087 Maintenance Worker
Annual 51,621.72 54,202.81 56,912.95 59,758.60 62,746.53 65,883.85 69,178.05 Monthly 4,301.81 4,516.90 4,742.75 4,979.88 5,228.88 5,490.32 5,764.84 Biweekly 1,985.45 2,084.72 2,188.96 2,298.41 2,413.33 2,533.99 2,660.69 Hourly 24.8181 26.0590 27.3620 28.7301 30.1666 31.6749 33.2587 Management Assistant
Annual 58,374.89 61,293.63 64,358.31 67,576.23 70,955.04 74,502.79 78,227.93 Monthly 4,864.57 5,107.80 5,363.19 5,631.35 5,912.92 6,208.57 6,518.99 Biweekly 2,245.19 2,357.45 2,475.32 2,599.09 2,729.04 2,865.49 3,008.77 Hourly 28.0648 29.4681 30.9415 32.4886 34.1130 35.8187 37.6096 Recreation Coordinator
Annual 55,242.79 58,004.93 60,905.18 63,950.44 67,147.96 70,505.36 74,030.63 Monthly 4,603.57 4,833.74 5,075.43 5,329.20 5,595.66 5,875.45 6,169.22 Biweekly 2,124.72 2,230.96 2,342.51 2,459.63 2,582.61 2,711.74 2,847.33 Hourly 26.5590 27.8870 29.2813 30.7454 32.2827 33.8968 35.5916 Water Service Worker I
Annual 52,984.35 55,633.57 58,415.25 61,336.01 64,402.81 67,622.95 71,004.10 Monthly 4,415.36 4,636.13 4,867.94 5,111.33 5,366.90 5,635.25 5,917.01 Biweekly 2,037.86 2,139.75 2,246.74 2,359.08 2,477.03 2,600.88 2,730.93 Hourly 25.4732 26.7469 28.0843 29.4885 30.9629 32.5110 34.1366 Water Service Worker II
Annual 57,441.40 60,313.47 63,329.14 66,495.60 69,820.38 73,311.40 76,976.97 Monthly 4,786.78 5,026.12 5,277.43 5,541.30 5,818.37 6,109.28 6,414.75 Biweekly 2,209.28 2,319.75 2,435.74 2,557.52 2,685.40 2,819.67 2,960.65 Hourly 27.6161 28.9969 30.4467 31.9690 33.5675 35.2459 37.0082 Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

Attachment “B”
0 Step A Step B Step C Step D Step E Step F Step G
Account Clerk
Annual 51,689.06 54,273.51 56,987.19 59,836.55 62,828.38 65,969.80 69,268.29 Monthly 4,307.42 4,522.79 4,748.93 4,986.38 5,235.70 5,497.48 5,772.36 Biweekly 1,988.04 2,087.44 2,191.81 2,301.41 2,416.48 2,537.30 2,664.16 Hourly 24.8505 26.0930 27.3977 28.7676 30.2060 31.7162 33.3021 Accounting Technician
Annual 64,584.36 67,813.58 71,204.26 74,764.48 78,502.70 82,427.83 86,549.23 Monthly 5,382.03 5,651.13 5,933.69 6,230.37 6,541.89 6,868.99 7,212.44 Biweekly 2,484.01 2,608.21 2,738.63 2,875.56 3,019.33 3,170.30 3,328.82 Hourly 31.0502 32.6027 34.2328 35.9445 37.7417 39.6288 41.6102 Annual 55,067.10 57,820.45 60,711.47 63,747.05 66,934.40 70,281.12 73,795.18 Monthly 4,588.92 4,818.37 5,059.29 5,312.25 5,577.87 5,856.76 6,149.60 Biweekly 2,117.97 2,223.86 2,335.06 2,451.81 2,574.40 2,703.12 2,838.28 Hourly 26.4746 27.7983 29.1882 30.6476 32.1800 33.7890 35.4785 Code Enforcement/Business License Officer
Annual 67,464.00 70,837.20 74,379.06 78,098.01 82,002.91 86,103.06 90,408.21 Monthly 5,622.00 5,903.10 6,198.25 6,508.17 6,833.58 7,175.25 7,534.02 Biweekly 2,594.77 2,724.51 2,860.73 3,003.77 3,153.96 3,311.66 3,477.24 Hourly 32.4346 34.0563 35.7592 37.5471 39.4245 41.3957 43.4655 Custodian
Annual 45,427.20 47,698.56 50,083.49 52,587.66 55,217.05 57,977.90 60,876.79 Monthly 3,785.60 3,974.88 4,173.62 4,382.31 4,601.42 4,831.49 5,073.07 Biweekly 1,747.20 1,834.56 1,926.29 2,022.60 2,123.73 2,229.92 2,341.42 Hourly 21.8400 22.9320 24.0786 25.2825 26.5467 27.8740 29.2677 Engineering Technician
Annual 71,264.21 74,827.42 78,568.79 82,497.23 86,622.10 90,953.20 95,500.86 Monthly 5,938.68 6,235.62 6,547.40 6,874.77 7,218.51 7,579.43 7,958.41 Biweekly 2,740.93 2,877.98 3,021.88 3,172.97 3,331.62 3,498.20 3,673.11 Hourly 34.2616 35.9747 37.7735 39.6621 41.6452 43.7275 45.9139 Human Resources Specialist
Annual 66,201.27 69,511.34 72,986.91 76,636.25 80,468.06 84,491.47 88,716.04 Monthly 5,516.77 5,792.61 6,082.24 6,386.35 6,705.67 7,040.96 7,393.00 Biweekly 2,546.20 2,673.51 2,807.19 2,947.55 3,094.93 3,249.67 3,412.16 Hourly 31.8275 33.4189 35.0899 36.8444 38.6866 40.6209 42.6519 Lead Maintenance Worker
Annual 65,094.85 68,349.60 71,767.07 75,355.43 79,123.20 83,079.36 87,233.33 Monthly 5,424.57 5,695.80 5,980.59 6,279.62 6,593.60 6,923.28 7,269.44 Biweekly 2,503.65 2,628.83 2,760.27 2,898.29 3,043.20 3,195.36 3,355.13 Hourly 31.2956 32.8604 34.5034 36.2286 38.0400 39.9420 41.9391 La Palma General Employees Association
Classification and Salary Tables
July 1, 2026 to June 30, 2027
Pursuant to Article III, Section 7B of the current MOU
Administrative Assistant
Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

Attachment “B”
1 Step A Step B Step C Step D Step E Step F Step G
Lead Utility Operator
Annual 69,263.71 72,726.90 76,363.24 80,181.41 84,190.48 88,400.00 92,820.00 Monthly 5,771.98 6,060.57 6,363.60 6,681.78 7,015.87 7,366.67 7,735.00 Biweekly 2,663.99 2,797.19 2,937.05 3,083.90 3,238.10 3,400.00 3,570.00 Hourly 33.2999 34.9649 36.7131 38.5488 40.4762 42.5000 44.6250 Maintenance Worker
Annual 53,686.59 56,370.92 59,189.47 62,148.94 65,256.39 68,519.21 71,945.17 Monthly 4,473.88 4,697.58 4,932.46 5,179.08 5,438.03 5,709.93 5,995.43 Biweekly 2,064.87 2,168.11 2,276.52 2,390.34 2,509.86 2,635.35 2,767.12 Hourly 25.8109 27.1014 28.4565 29.8793 31.3733 32.9419 34.5890 Management Assistant
Annual 60,709.88 63,745.38 66,932.65 70,279.28 73,793.24 77,482.90 81,357.05 Monthly 5,059.16 5,312.11 5,577.72 5,856.61 6,149.44 6,456.91 6,779.75 Biweekly 2,335.00 2,451.75 2,574.33 2,703.05 2,838.20 2,980.11 3,129.12 Hourly 29.1874 30.6468 32.1792 33.7881 35.4775 37.2514 39.1140 Recreation Coordinator
Annual 57,452.51 60,325.13 63,341.39 66,508.46 69,833.88 73,325.57 76,991.85 Monthly 4,787.71 5,027.09 5,278.45 5,542.37 5,819.49 6,110.46 6,415.99 Biweekly 2,209.71 2,320.20 2,436.21 2,558.02 2,685.92 2,820.21 2,961.23 Hourly 27.6214 29.0025 30.4526 31.9752 33.5740 35.2527 37.0153 Water Service Worker I
Annual 55,103.73 57,858.91 60,751.86 63,789.45 66,978.92 70,327.87 73,844.26 Monthly 4,591.98 4,821.58 5,062.65 5,315.79 5,581.58 5,860.66 6,153.69 Biweekly 2,119.37 2,225.34 2,336.61 2,453.44 2,576.11 2,704.92 2,840.16 Hourly 26.4922 27.8168 29.2076 30.6680 32.2014 33.8115 35.5020 Water Service Worker II
Annual 59,739.06 62,726.01 65,862.31 69,155.43 72,613.20 76,243.86 80,056.05 Monthly 4,978.25 5,227.17 5,488.53 5,762.95 6,051.10 6,353.65 6,671.34 Biweekly 2,297.66 2,412.54 2,533.17 2,659.82 2,792.82 2,932.46 3,079.08 Hourly 28.7207 30.1567 31.6646 33.2478 34.9102 36.6557 38.4885 Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

Attachment “C”
0 Step A Step B Step C Step D Step E Step F Step G
Account Clerk
Annual 53,756.62 56,444.45 59,266.68 62,230.01 65,341.51 68,608.59 72,039.02 Monthly 4,479.72 4,703.70 4,938.89 5,185.83 5,445.13 5,717.38 6,003.25 Biweekly 2,067.56 2,170.94 2,279.49 2,393.46 2,513.14 2,638.79 2,770.73 Hourly 25.8445 27.1368 28.4936 29.9183 31.4142 32.9849 34.6341 Accounting Technician
Annual 67,167.74 70,526.13 74,052.43 77,755.05 81,642.81 85,724.95 90,011.19 Monthly 5,597.31 5,877.18 6,171.04 6,479.59 6,803.57 7,143.75 7,500.93 Biweekly 2,583.37 2,712.54 2,848.17 2,990.58 3,140.11 3,297.11 3,461.97 Hourly 32.2922 33.9068 35.6021 37.3822 39.2513 41.2139 43.2746 Annual 57,269.78 60,133.27 63,139.93 66,296.93 69,611.78 73,092.36 76,746.98 Monthly 4,772.48 5,011.11 5,261.66 5,524.74 5,800.98 6,091.03 6,395.58 Biweekly 2,202.68 2,312.82 2,428.46 2,549.88 2,677.38 2,811.24 2,951.81 Hourly 27.5335 28.9102 30.3557 31.8735 33.4672 35.1406 36.8976 Code Enforcement/Business License Officer
Annual 70,162.56 73,670.69 77,354.22 81,221.93 85,283.03 89,547.18 94,024.54 Monthly 5,846.88 6,139.22 6,446.19 6,768.49 7,106.92 7,462.26 7,835.38 Biweekly 2,698.56 2,833.49 2,975.16 3,123.92 3,280.12 3,444.12 3,616.33 Hourly 33.7320 35.4186 37.1895 39.0490 41.0015 43.0515 45.2041 Custodian
Annual 47,244.29 49,606.50 52,086.83 54,691.17 57,425.73 60,297.01 63,311.86 Monthly 3,937.02 4,133.88 4,340.57 4,557.60 4,785.48 5,024.75 5,275.99 Biweekly 1,817.09 1,907.94 2,003.34 2,103.51 2,208.68 2,319.12 2,435.07 Hourly 22.7136 23.8493 25.0417 26.2938 27.6085 28.9889 30.4384 Engineering Technician
Annual 74,114.78 77,820.52 81,711.55 85,797.12 90,086.98 94,591.33 99,320.89 Monthly 6,176.23 6,485.04 6,809.30 7,149.76 7,507.25 7,882.61 8,276.74 Biweekly 2,850.57 2,993.10 3,142.75 3,299.89 3,464.88 3,638.13 3,820.03 Hourly 35.6321 37.4137 39.2844 41.2486 43.3110 45.4766 47.7504 Human Resources Specialist
Annual 68,849.33 72,291.79 75,906.38 79,701.70 83,686.79 87,871.13 92,264.68 Monthly 5,737.44 6,024.32 6,325.53 6,641.81 6,973.90 7,322.59 7,688.72 Biweekly 2,648.05 2,780.45 2,919.48 3,065.45 3,218.72 3,379.66 3,548.64 Hourly 33.1006 34.7557 36.4935 38.3181 40.2340 42.2457 44.3580 Lead Maintenance Worker
Annual 67,698.65 71,083.58 74,637.76 78,369.65 82,288.13 86,402.53 90,722.66 Monthly 5,641.55 5,923.63 6,219.81 6,530.80 6,857.34 7,200.21 7,560.22 Biweekly 2,603.79 2,733.98 2,870.68 3,014.22 3,164.93 3,323.17 3,489.33 Hourly 32.5474 34.1748 35.8835 37.6777 39.5616 41.5397 43.6167 La Palma General Employees Association
Classification and Salary Tables
July 1, 2027 to June 30, 2028
Pursuant to Article III, Section 7C of the current MOU
Administrative Assistant
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Attachment “C”
1 Step A Step B Step C Step D Step E Step F Step G
Lead Utility Operator
Annual 72,034.26 75,635.97 79,417.77 83,388.66 87,558.10 91,936.00 96,532.80 Monthly 6,002.86 6,303.00 6,618.15 6,949.06 7,296.51 7,661.33 8,044.40 Biweekly 2,770.55 2,909.08 3,054.53 3,207.26 3,367.62 3,536.00 3,712.80 Hourly 34.6319 36.3634 38.1816 40.0907 42.0952 44.2000 46.4100 Maintenance Worker
Annual 55,834.06 58,625.76 61,557.05 64,634.90 67,866.64 71,259.98 74,822.98 Monthly 4,652.84 4,885.48 5,129.75 5,386.24 5,655.55 5,938.33 6,235.25 Biweekly 2,147.46 2,254.84 2,367.58 2,485.96 2,610.26 2,740.77 2,877.81 Hourly 26.8433 28.1855 29.5947 31.0745 32.6282 34.2596 35.9726 Management Assistant
Annual 63,138.28 66,295.19 69,609.95 73,090.45 76,744.97 80,582.22 84,611.33 Monthly 5,261.52 5,524.60 5,800.83 6,090.87 6,395.41 6,715.18 7,050.94 Biweekly 2,428.40 2,549.82 2,677.31 2,811.17 2,951.73 3,099.32 3,254.28 Hourly 30.3549 31.8727 33.4663 35.1396 36.8966 38.7415 40.6785 Recreation Coordinator
Annual 59,750.61 62,738.14 65,875.04 69,168.80 72,627.24 76,258.60 80,071.53 Monthly 4,979.22 5,228.18 5,489.59 5,764.07 6,052.27 6,354.88 6,672.63 Biweekly 2,298.10 2,413.01 2,533.66 2,660.34 2,793.36 2,933.02 3,079.67 Hourly 28.7263 30.1626 31.6707 33.2542 34.9169 36.6628 38.4959 Water Service Worker I
Annual 57,307.88 60,173.27 63,181.93 66,341.03 69,658.08 73,140.99 76,798.03 Monthly 4,775.66 5,014.44 5,265.16 5,528.42 5,804.84 6,095.08 6,399.84 Biweekly 2,204.15 2,314.36 2,430.07 2,551.58 2,679.16 2,813.11 2,953.77 Hourly 27.5519 28.9295 30.3759 31.8947 33.4895 35.1639 36.9221 Water Service Worker II
Annual 62,128.62 65,235.05 68,496.80 71,921.64 75,517.72 79,293.61 83,258.29 Monthly 5,177.38 5,436.25 5,708.07 5,993.47 6,293.14 6,607.80 6,938.19 Biweekly 2,389.56 2,509.04 2,634.49 2,766.22 2,904.53 3,049.75 3,202.24 Hourly 29.8695 31.3630 32.9312 34.5777 36.3066 38.1219 40.0280 Docusign Envelope ID: 4328DFBA-E213-4D3F-A61F-C11E8F2EB5FA Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

Resolution No. 2025-xx

RESOLUTION NO. 2025-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA PALMA ADOPTING THE MEMORANDUM OF

UNDERSTANDING BETWEEN THE CITY OF LA PALMA

AND THE LA PALMA PROFESSIONAL EMPLOYEES

ASSOCIATION
WHEREAS, the City of La Palma (City) and the La Palma Professional Employees Association (LPPEA) have met and conferred in good faith; and WHEREAS, the City and the LPPEA have reached an agreement; and WHEREAS, the attached Memorandum of Understanding embodies those terms and conditions upon which an agreement was reached; and WHEREAS, the Interim City Manager and President of LPPEA have signed the Memorandum of Understanding for the period of July 1, 2025 through June 30, 2028.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of La Palma hereby approves the Memorandum of Understanding between the City of La Palma and the La Palma Professional Employees Association for the contract period of July 1, 2025 through June 30, 2028.

APPROVED AND ADOPTED by the City Council of the City of La Palma at a regular meeting held on the 6th day of May, 2025.
____________________________________
Mark I. Waldman
Mayor
ATTEST:
_____________________________________
Kimberly Kenney, CMC
City Clerk

Resolution No. 2025-xx

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.

CITY OF LA PALMA )
I, KIMBERLY KENNEY, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 6th day of May, 2025, and that it was so adopted by called vote as follows:

AYES:

NOES:
_________________________________
Kimberly Kenney, CMC
City Clerk

MEMORANDUM OF UNDERSTANDING
July 1, 2025 – June 30, 2028
City of La Palma
and
La Palma Professional Employees Association
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i

TABLE OF CONTENTS
ARTICLE I TERM OF AGREEMENT ........................................................................ 1 ARTICLE II RECOGNITION ........................................................................ 2 ARTICLE III COMPENSATION ........................................................................ 3 ARTICLE IV CONDITIONS OF EMPLOYMENT........................................................... 9 ARTICLE V HOLIDAYS ...................................................................... 10 ARTICLE VI VACATIONS ...................................................................... 11 ARTICLE VII SICK LEAVE ...................................................................... 14 ARTICLE VIII OTHER LEAVE PROVISIONS................................................................. 18 ARTICLE IX TRAINING ...................................................................... 21 ARTICLE X GROUP INSURANCE ...................................................................... 22 ARTICLE XI RETIREMENT ...................................................................... 26 ARTICLE XII DEFERRED COMPENSATION ............................................................... 27 ARTICLE XIII UNIFORMS ...................................................................... 28 ARTICLE XIV COMPLETION OF MEET AND CONFER.............................................. 29 ARTICLE XV GRIEVANCE PROCEDURE...................................................................... 30 ARTICLE XVI LAYOFF PROCEDURE ...................................................................... 33 ARTICLE XVII LPPEA AND EMPLOYEE RIGHTS ....................................................... 35 ARTICLE XVIII INTEGRATION AND CONSTRUCTION............................................. 36 ARTICLE XIX NONDISCRIMINATION ...................................................................... 37 ARTICLE XX SEPARABILITY ...................................................................... 38 ARTICLE XXI MAINTENANCE OF MEMBERSHIP...................................................... 39 ARTICLE XXII DISCIPLINARY PROCEDURE............................................................... 40 Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

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ARTICLE XXIII IMPLEMENTATION ...................................................................... 48 ATTACHMENT A – SALARY TABLE (FY 2025-2026).................................................. 49 ATTACHMENT B – SALARY TABLE (FY 2026-2027).................................................. 50 ATTACHMENT C – SALARY TABLE (FY 2027-2028).................................................. 51 Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

1 ARTICLE I

TERM OF AGREEMENT
This Memorandum of Understanding ("Memorandum") is made by and between the City of La Palma and the La Palma Professional Employees Association California (LPPEA) and shall be in effect from July 1, 2025 through June 30, 2028.

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2 ARTICLE II

RECOGNITION
Pursuant to the Employees Resolution of the City, and California Government Code Sections 3500- 3510, the City hereby recognizes the La Palma Professional Employees' Association as the majority representative of the full-time employees who are members of the Association, which includes employees in all general classifications as follows:

Accounting Supervisor
Community Services Supervisor
Deputy City Clerk/Executive Assistant
Human Resources Analyst
Management Analyst
Water Supervisor
An employee who is regularly scheduled to work 40 hours per week is considered to be full time.

The parties agree that any job description or classification that the City proposes to add, delete, or change in the bargaining unit is subject to the meet and confer process.

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3 ARTICLE III

COMPENSATION
SECTION 1. The basic compensation plan for all full-time employees of the City of La Palma who are now employed, or in the future will be employed, in any of the categories of employment represented by the Unit is set forth in Article II. The plan will encompass employee obligations and privileges with recognition of faithful and efficient service.

SECTION 2. CATEGORIES OF EMPLOYMENT
Regular Full-Time - Positions with characteristics requiring full-time employment of 40 hours per work period.

SECTION 3. COMPENSATION - REGULAR FULL-TIME CATEGORY
A. Compensation shall be determined from Attachment A consisting of a schedule of salary and wage ranges, each of which includes seven steps, or rates of pay; each horizontal step being approximately five percent greater than the previous step.

B. Initial Employment. The rate of compensation for initial employment in any class shall be at Step "A”, provided that the City Manager, in their sole discretion, may approve compensation at a higher step if they find that the person employed is reasonably entitled, by reason of experience or ability, to a rate in any one of the steps above the minimum or that it is difficult to obtain qualified applicants at the minimum rate.

C. Merit Advancement Within a Range.

1. The primary reason for advancement within a range shall be meritorious performance in an employee's assigned duties. Meritorious performance shall be measured by the receipt of a rating of satisfactory or above on the performance evaluation.

2. Merit increases shall be based on meritorious service, and, if granted, shall be effective on the first day of the pay period in which the anniversary falls. The City Manager may suspend merit increases in times of economic uncertainty or hardship.

3. An employee may be advanced within his or her respective compensation ranges in accordance with the following schedule:

Advancement to the next step at the completion of an employee’s initial six months of satisfactory service in the classification, if the employee is hired at Step A, as determined by the Department Head.

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4 Advancement to the next step at the completion of an employee’s initial twelve months of satisfactory service in the classification, if the employee is hired at A, as determined by the Department Head.

Advancement to the next step annually thereafter at the completion of one year of satisfactory service in the prior step, or if the employee is hired at Step B or above, as determined by the Department Head.

4. Satisfactory service shall be defined as having received an Overall Performance Rating of Satisfactory or above in the employee’s annual performance review, as determined by the Department Head.

5. All proposed advancements shall be recommended by the Department Head and approved by the City Manager before becoming effective.

6. When an employee demonstrates exceptional ability and proficiency, such employee may be advanced to the next higher step within the employee’s salary range with the approval of the City Manager, in her/his sole discretion, following recommendation by the Department Head, without regard to the minimum length of service provisions contained in this section. Advancements under this section shall change the employee’s merit increase eligibility date to the anniversary of the last step increase.

D. Promotion or Advancement in Rate of Compensation. When an employee is promoted from the employment in one class to the employment in a class assigned a higher range, advancement shall be to the lowest step in such higher range, which will provide not less than a five percent (5%) increase in compensation unless the top step in such range provides less than a five percent (5%) increase. Additional compensation being received because of special assignment shall not be considered in determining to which step an employee is advanced.

E. Reassignment of Compensation Ranges. Any employee who is employed in a classification which is reassigned to a different salary range from that previously assigned shall be retained at the same salary step in the new range closest to the salary amount they had previously and shall have credit for the length of service in such step that was served in such lower range applied to determine the time eligible to move to the next higher step in the new range provided, however that the City Manager may at the time of reassignment, at his/her discretion, place the employee in such step and make such changes in anniversary dates as may be deemed appropriate.

F. Reduction in Compensation for cause. The compensation of any employee may be reduced by one or more steps for good cause, upon the recommendation of the Department Head and approval of the City Manager.

G. Reduction in Compensation for disability. When a regular employee in good standing is reduced to a position in a lower class for physical disability reasons, the employee shall receive the highest salary in the new range that does not exceed the employee's rate of pay Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

5 immediately prior to reduction and shall retain their merit increase eligibility date.

H. Demotion. When an employee is demoted to a position in a lower range, on the approval of the City Manager, his or her compensation shall be at a rate reduction of at least one step.

I. Y-Rate. If an employee is demoted and the compensation reduction as described in H above exceeds the top step in the employee’s new classification, the employee may be Yrated at the discretion of the City Manager. The employee shall receive no equity, cost of living, or any other increases in salary until their current salary is equal to or lesser than the top step in their new classification.

J. Revision in Classification and Compensation Plan. The City reserves the right, in its sole discretion, to establish new classes of employment or to combine or abolish existing classes.

SECTION 4. STANDBY DUTY/CALL BACK PAY/WATER WEEKEND DUTY A. Standby Duty. The Water Supervisor shall by eligible for Standby Duty and associated pay as follows:

Standby duty is remaining in a state of readiness and available for call outs and emergencies. It is not time worked. Decisions regarding if and when to place employees on standby is the prerogative of the Department Director. Compensation for Standby Duty shall be $200 per week for each week of Standby duty. Standby duty over designated holidays shall be for 24 hours and shall be compensated with 8 hours of regular time and is separate from the normal weekly standby duty. Additional compensation for actual time spent checking on the water system twice each day on weekend days, designated Fridays off, and holidays shall be provided for water weekend duty as described in Section 4 (B) below.

In order to be eligible to work standby duty, employees must be able to report to the work site within 30 minutes of being called. This time will be determined using a reputable internet mapping site to determine the length of time required to drive from the employee’s residence to City Hall. Standby duty will be assigned on an equitable and fair basis to all qualified employees. At the discretion of the City Manager employees not able to comply with the 30-minute response time requirement will be eligible for Standby duty. Employees who cannot comply with the 30 minute response time requirement, but who still wish to be on Standby duty, will not receive compensation for travel time to or from the work location.

B. Call Back and Emergency Overtime Duty. In addition to standby compensation, The Water Supervisor shall by eligible for Call Back and Emergency Overtime Duty and associated pay as follows:

Due to the extraordinary call back hours required of the Water Supervisor, they shall receive a minimum of two hours compensation at Overtime rates (1.5) for hours worked Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

6 for any call—including during the holiday closure--which requires them to return to duty with less than 24 hours’ notice. The maximum total of callback and/or Emergency Overtime compensated hours shall not exceed a combined total of 320 hours per fiscal year for both employees. Any hours in excess of 320 shall not be compensable.

If other members of the LPPEA are called out during an evening or weekend, their schedule can be “flexed” by their Department Head.

C. Water Weekend Duty. Employees in the Water Division are required to perform Water Weekend Duty which involves a combination of standby and call back to work, but where there is more than 24 hours’ notice of the additional return to work required. Standby time is compensated as described above in Section 4 (A). The additional work required with more than 24 hours’ notice shall be compensated at the employee’s regular rate for four hours each day, which includes checking the water system on site twice daily and by internet connection a minimum of twice daily and as needed. The four hours is compensated at straight time unless the hours exceed the Overtime threshold, at which time, the portion exceeding forty hours would then be compensated at Overtime rates. Call back time during the “Holiday Closure” shall be at Overtime rates regardless of whether or not the employee has exceeded 40 hours in the work week.

D. Court Time. Employees who are required to appear in court during their off duty hours on behalf of the City shall receive overtime compensation for the number of hours actually spent in court, plus round trip travel time from the place of employment to the court, with a minimum of two (2) hours of such compensation. If a City vehicle is not available, mileage will be paid at the standard mileage rate as established by the IRS from time to time.

E. Overtime and Compensatory Time. All members of the LPPEA are classified as FLSA-exempt employees and are not eligible for overtime or compensatory time.

SECTION 5. SPECIAL COMPENSATION
A. Court Subpoena. An employee who is served with a subpoena to appear as a witness during regular work hours in a deposition or proceeding in a court action to which they are not a party shall receive their normal compensation for the time actually spent while personally testifying or traveling to place of testimony, less any amount the employee receives or is entitled to as witness fees or mileage reimbursement. The employee shall be responsible for demanding payment for all fees or reimbursables to which they are entitled.

B. Jury Duty. Any employees summoned for jury duty in a court action shall receive their normal compensation for the actual time served as required as an actual or prospective juror. Employees shall not receive compensation for actual time served as an actual or prospective juror for regular days off (e.g. alternate Fridays). Employees will be allowed to keep the stipend provided by the County.

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7 C. Acting Pay. All employees, who by written assignment by their Department Head, perform the duties of a position with a higher salary classification than that in which they are regularly employed, shall receive the compensation specified for the position to which they are thus assigned if they perform the duties thereof for a period of one (1) uninterrupted month or more, said increased compensation to be at such step within the higher classification as will accord such employee an increase of at least five percent (5%) over their current regular compensation, provided that the compensation does not exceed the maximum step in the salary range for the higher classification. Such compensation shall be retroactive to the first day of the assignment.

D. Bilingual Pay. Employees passing the City’s bilingual testing process shall receive an additional $150 per month for speaking the language of Korean, Mandarin Chinese, Spanish, Vietnamese, or other language(s) deemed required or necessary by the City Manager. Biennial recertification by the Human Resources Division is required. Employees receiving bilingual pay may be required to utilize these skills for translation purposes.

SECTION 6. PAY PERIODS
All employees shall be paid bi-weekly. Requests for changes to tax withholding may be made four (4) times per calendar year (A request to change withholding for one pay period and return it to the prior withholding the next pay period is considered two requests).

SECTION 7. SALARY SCHEDULE
A. All classifications in Attachment A – Salary Schedule shall receive a 5.0% increase to each step within the pay schedule effective July 1, 2025.

B. All classifications in Attachment B – Salary Schedule shall receive a 4.0% increase to each step within the pay schedule effective July 1, 2026.

C. All classifications in Attachment C – Salary Schedule shall receive a 4.0% increase to each step within the pay schedule effective July 1, 2027.

SECTION 8. REST PERIODS AND CLEANUP TIME
A. Employees shall be allowed paid rest periods of fifteen (15) minutes during each four (4) consecutive hours of work. Such a rest period shall be scheduled in accordance with the requirements of the work unit, but in no case shall rest periods be scheduled within one (1) hour of the beginning or the ending of a work shift or lunch period.

B. Each employee shall, when necessary, be permitted a reasonable period of paid time, as determined by the Department Head, at the end of each work shift to perform such activities as cleaning up a work area, putting away tools, and personal wash up as necessary.

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8 SECTION 9. SCHEDULE OF WORK
Employees are assigned to a seven day work period. Regularly scheduled hours of work for employees working regular business hours shall be Monday through Thursday, 7:30 a.m. to 6:30 p.m. with a one hour meal break. Employees not associated with regular business hours may have a different schedule, but will not exceed 40 regularly scheduled hours of work for the work period.

By setting these schedules, the City is in no way giving up its Management right to set or change work schedules or to make changes to schedules to cover for illness or emergencies.

SECTION 10. DIRECT DEPOSIT
All employees are required to sign up for direct deposit.

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9 ARTICLE IV

CONDITIONS OF EMPLOYMENT
SECTION 1. EQUAL OPPORTUNITY. The City of La Palma is an equal opportunity employer and prohibits discrimination in employment because of an individual’s Protected Class. Protected Class includes race, age, religion, color, national origin, ancestry, sex (including pregnancy, childbirth, breastfeeding, or related medical conditions), gender (including gender identity and gender expression), sexual orientation, citizenship status, disability, medical condition, genetic characteristics or information, marital status, and military or veteran status.

SECTION 2. RESIDENCY. Residency in the City of La Palma is not required as a condition of employment.

SECTION 3. PHYSICAL EXAMINATION. The City reserves the right to designate a doctor, or doctors, for all required examinations, and the cost of any required examinations will be borne by the City.

SECTION 4. PROBATION PERIOD. An employee shall be on probation for a period of one year from the date of commencement of employment. Probation may be extended when warranted upon approval of the City Manager. Such employee may be granted a salary increase, in the discretion of the City Manager, despite such extension of the probationary period. Probationary employees may be terminated from employment with or without cause by the Department Head with the approval of the City Manager, in their sole discretion, and in accordance with State and Federal laws.

SECTION 5. OTHER EMPLOYMENT. No employee shall engage in any other employment, that is inconsistent or incompatible with City employment. Other employment must be approved in advance by the Department Head. Wearing of City uniforms or City-supplied clothing while engaging in non-City employment is prohibited.

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10 ARTICLE V

HOLIDAYS
SECTION 1. DESIGNATED HOLIDAYS. Designated holidays shall be New Year's Day, President's Day, Martin Luther King, Jr. Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, Christmas Eve, and Christmas. When a designated holiday falls on a regularly scheduled Friday off, the day of absence shall be the preceding Thursday except in the specific cases listed in Section 1 (F). When a designated holiday falls on Saturday, the day of absence shall be the preceding Friday except in the specific cases listed in Section 1(F). When a designated holiday falls on Sunday, the day of absence shall be the following Monday.

A. All full-time employees shall be granted forty (40) hours of absence, termed "floating holiday", in addition to designated holidays. "Floating holiday" time shall be taken between July 1 and June 30 of the fiscal year at a time selected by the employee with the concurrence of the Department Head. For new employees, floating holiday hours shall be pro-rated over the fiscal year based on the employee's employment date. Any floating holiday time remaining as of June 30 of the fiscal year shall be forfeited and at no time shall floating holiday time be eligible for cashout.

B. All City Hall, City Yard, Police Department Administrative staff, and Recreation and Community Services full-time staff will utilize floating holiday time, administrative leave, compensatory leave, or vacation leave to facilitate a Holiday closure between the Christmas Holiday and the New Year’s Holiday.

C. If any designated holiday is within an employee's scheduled vacation period, that particular day of absence will be charged to "holiday" rather than "vacation".

D. No absence under the holiday provisions in this article shall be charged to or paid from sick leave accumulated benefits.

E. Holiday pay for Full-Time Employees. Full-time employees covered by this agreement, shall be paid on the basis of the number of hours normally scheduled on the day on which the holiday falls. If the employee would have worked in excess of 10 hours, the employee will be required to utilize Administrative, Compensatory (if available), Floating Holiday, or Vacation hours to supplement the difference.

F. When Christmas falls on a Friday, ten hours of floating holiday will be given in lieu of the Christmas Eve holiday as the Christmas holiday leave will be taken on Christmas Eve. When Christmas Eve falls on a Saturday, ten hours of floating holiday will be given in lieu of the Christmas Eve holiday to be used to offset the Holiday closure between Christmas and New Year’s.

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11 ARTICLE VI

VACATIONS
SECTION 1. VACATIONS. In accordance with the following rules, and subject to the limitations, deductions and loss thereof as provided in the Article, each employee shall be allowed and credited with the right to take vacation absences with pay, hereinafter referred to as vacation, in addition to allowed holidays and sick leave absences.

A. Schedule for Tier One Full-time Employees (Hired prior to July 1, 2011). Vacation credit shall be computed on the basis of 4.62 hours per pay period (120.12 hours) for continuous full-time employment beginning with the first day of their employment.

Continuous full-time employment shall be time for which the employee is paid, except for the first 30 days of leave without pay.

1. Vacation. Credit shall be computed on the basis of 4.62 hours per pay period (120.12 hours) for each year of continuous full-time employment, beginning with the 13th month to the completion of 120 months of continuous employment.

2. Vacation. Credit shall be computed on the basis of 6.16 hours per pay period (160.16 hours per year) for each year of continuous full-time employment, beginning with the 121st month to the completion of 180 months of continuous employment.

3. Vacation. Credit shall be computed on the basis of 7.08 hours per pay period (184.08 hours per year) for each year of continuous full-time employment, beginning with the 181st month to the completion of 240 months of continuous employment.

4. Vacation. Credit shall be computed on the basis of 7.70 hours per pay period (200.2 hours per year) for each year of continuous full-time employment, beginning with the 241st month of continuous employment.

B. Schedule for Tier Two Employees (Hired as new City of La Palma Employees on or after July 1, 2011). Vacation credit shall be computed on the basis of 3.08 hours per pay period for continuous full-time employment beginning with the first day of their employment. Continuous full-time employment shall be time for which the employee is paid, except for the first 30 days of leave without pay.

1. Vacation. Credit shall be computed on the basis 3.08 hours per pay period (80.08 hours per year) for each year of continuous full-time employment, beginning with the 13th month to the completion of 60 months of continuous employment.

2. Vacation. Credit shall be computed on the basis of 4.62 hours per pay period (120.12 hours per year) for each year of continuous full-time employment, beginning with the 61st month to the completion of 120 months of continuous employment.

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12 3. Vacation. Credit shall be computed on the basis 6.16 hours per pay period (160.16 hours per year) for each year of continuous full-time employment, beginning with the 121st month to the completion of 240 months of continuous employment.

4. Vacation. Credit shall be computed on the basis 7.08 hours per pay period (184.08 hours per year) for each year of continuous full-time employment, beginning with the 241st month of continuous employment.

C. Taking. All or any part of accrued vacation hours may be taken only as herein provided. Accrued vacation hours taken shall be counted as full-time employment.

D. First Vacation. An employee's first vacation may not be taken before the accumulated vacation hours credited to the employee are equal to or greater than the vacation credit for 6 months of work, unless approved by the City Manager, in his/her sole discretion.

E. Department Head Approval. An employee shall not be entitled to take vacation unless the date(s) of the vacation are approved in advance by the employee's Department Head, or, in the event of the Department Head's refusal or failure to do so, by the City Manager. The taking of an employee's vacation shall be scheduled for such time as will achieve the most efficient functioning of the department and so as to avoid any loss of allowable vacation absences by reason of the limitation on the accrual; provided, however, that the Department Head will endeavor, subject to the foregoing limitations, to schedule an employee's vacation at or near the date(s) requested by the employee.

1. Except as otherwise provided herein, vacation may not be used in lieu of sick leave and generally must be scheduled in advance of the absence; however, if the Department Head determines that an emergency or other unusual occurrence exists for which sick leave cannot be used and the employee has no compensatory time or other appropriate leave available, the Department Head has the discretion to allow vacation hours to be used when an employee calls in an absence on the actual day of the absence.

F. Maximum Accumulation. Allowed vacation credits shall be cumulative. Vacations taken shall be deducted from the first vacation credits accumulated. The maximum accumulation of vacation credits that may be held is 320 hours. Whenever the maximum vacation accumulation is reached, and so long as it continues, the first monthly vacation credit included in such accumulation shall become null and void, and be deemed forfeited by the employee, each time a new monthly vacation credit is added to the accumulation of vacation credits.

G. Vacation Cash-out Option. Each full-time employee shall have the option of cashing out up to one hundred (100) hours of vacation, once per fiscal year. However, the employee must retain a bank of at least 20 hours of vacation following the cashout. Cashout requests shall be processed and included on the next available regular paycheck following an Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

13 approved request to cashout the leave.

H. Termination of Employment. Except as otherwise herein provided, an employee whose employment is terminated by death, resignation, layoff, or otherwise shall then be paid for the balance of the accumulated vacation credits, at the employee's salary rate in effect at such termination.

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14 ARTICLE VII

SICK LEAVE
SECTION 1. ACCRUAL OF SICK LEAVE. Sick leave with pay shall be allowed and computed on the basis of 3.70 hours per pay period in accordance with the following rules to each full-time employee.

A. The maximum accrual of unused sick leave for an employee shall be 760 hours.

SECTION 2. SICK LEAVE CHARGE RATE. Sick leave shall be charged at the rate of 1 hour for each hour an employee is absent with pay on sick leave. Increments shall be no less than fifteen (15) minutes.

SECTION 3. SICK LEAVE USAGE. An employee eligible for sick leave pay shall be granted such leave for the following reasons:

A. Personal illness or physical incapacity.

B. Forced quarantine of the employee in accordance with community health regulations.

C. Serious illness of a member of the employee's immediate family, which requires the presence of the employee for a period not to exceed five working days. Immediate family shall be defined as child, spouse, domestic partner, parent of an employee, anyone for whom the employee has legal guardianship, or anyone for whom the employee has been designated as the primary caregiver.

D. Medical or dental appointments
E. Pursuant to the requirements of Labor Code Section 233. At the employee’s option, vacation may be substituted for sick leave when one of the above conditions exists and when the employee has used all accumulated sick leave.

SECTION 4. PERSONAL NECESSITY LEAVE. Each full-time employee shall be afforded the opportunity to use up to two 18 hours of sick leave benefits per fiscal year (on a non-accumulative basis) for personal necessity leave, for personal unplanned events which may need immediate attention. Personal necessities shall include, but not be limited to, family emergencies, or imminent danger to the employee's home or other valuable property.

SECTION 5. SICK LEAVE CASH-OUT OPTION. Each full-time employee shall have the option of "cashing out" up to fifty (50) hours of sick leave, once per fiscal year. However, a minimum balance of eighty 80 hours shall be maintained in their accrued sick leave account. This option can be exercised at any time during the term of the Agreement. Employees who have in excess of 700 Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

15 hours on June 1 of each year, may cash out an additional 12 hours of sick leave. Cashout requests shall be processed and included on the next available regular paycheck following an approved request to cashout the leave.

SECTION 6. JOB INCURRED ILLNESS OR INJURY.

A. A full-time employee, absent as a result of a job-incurred illness or a job-incurred injury, shall receive, as temporary disability compensation, the full amount of regular straight time salary or wages which would have been earned from the commencement of said disability and until a doctor's notice is received that the employee is released to return to regular work, or is classified as permanent and stationary. This compensation shall not exceed sixty (60) calendar days, and shall be paid only one time for a particular illness or injury. If the disability for which the benefits were payable continues or recurs due to the same or related causes after returning to work, it will be considered a resumption of the prior disability and no further compensation shall be made, except that which is provided by State Worker's Compensation Laws and applicable long-term disability insurance. Employees will only be compensated for normal working hours and shall not be entitled to extra pay for hours where they may be receiving medical care during non-scheduled hours (e.g. hospital stays, medical appointments on the weekends, etc.)
The above notwithstanding, in the event of temporary disability, extending beyond the first sixty (60) calendar days, the employee shall have the option, in addition to compensation under the Worker's Compensation Laws, to use paid sick leave, up to the number of hours accumulated, and once sick leave is exhausted, may also then elect to draw on any accumulated vacation hours to receive up to the amount of the employee's bi-weekly pay.

SECTION 7. APPROVAL OF SICK LEAVE. Sick leave absence with pay may be taken, provided that the employee has a sufficient balance of accrued sick leave to cover the requested absence.

A. No payment for sick leave shall be made without the prior approval of the Department Head except for unforeseen illness or injury in which case approval will be sought as the earliest practicable time.

B. If an employee's sick leave absence extends beyond three consecutive working days for reasons of personal illness or injury, or any time abuse of sick leave is suspected, a written statement may be required, certifying that the employee was incapacitated from the performance of their employment duties during the entire term of such absence. The written statement shall be signed by a licensed physician or dentist qualified to render a medical opinion on the illness or injury in question. If an employee's sick leave absence extends beyond five consecutive working days for reasons of personal illness or injury, such written statement from a physician or dentist shall be required. Whenever a physician or dentist written statement is required by the City, the City shall reimburse the employee for any applicable office visit copays incurred.

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16 C. Where an employee's absence due to personal illness or injury extends for more than five consecutive working days, the Department Head, with the approval of the City Manager, may require the employee to submit to one or more examinations, at City expense and by physicians or dentists selected by the City in its sole discretion for the purpose of determining the nature and extent of the employee's disability. The failure or refusal of an employee to submit to any such examination within five days after being requested to do so in and of itself constitutes sufficient and proper grounds for termination of the employee.

D. Upon the employee's return to work following an absence for more than five working days due to illness or injury, an employee shall submit to their Department Head a written statement signed by a qualified physician or dentist certifying that they are physically able to resume work.

E. An employee who has used all sick leave earned and credited, may not have unearned sick leave credit advanced except by order of the City Council.

SECTION 8. COMPENSATION FOR UNUSED SICK LEAVE. The unit value of an employee's unused sick leave shall be eight hours for each full month of employment. No compensation for unused sick leave accumulation will be paid if termination, for any reason, occurs prior to 60 months of continuous full-time employment.

A. The first full day of sick leave absence in any month shall not be added to or subtracted from the accumulation. Any number of hours of sick leave absence, within an eight-hour day, will be charged against the credit for that day or month. Any number of full days or hours of any one day, more than the first eight hours of paid sick leave absence in any month, shall be charged against the accumulated credit.

B. Except as provided below, a full-time employee upon a regular California Public Employees’ Retirement System (CalPERS) retirement following the completion of 60 or more months of continuous employment with the City of La Palma, shall receive 100 percent (100%) payment for all accumulated sick leave credit, up to a maximum of 320 hours at the salary or wage rate in effect at such retirement. This compensation shall be provided when final verification of retirement is received by the City from CalPERS.

1. Employees who have in excess of 500 hours of accumulated sick leave credit as of July 1, 2011, shall receive, at retirement, 100 percent (100%) payment for all accumulated sick leave credit, up to a maximum of the number of hours accrued as of July 1, 2011, at the salary or wage rate in effect at such retirement. For example, an employee who has an accumulated sick leave balance of 700 hours on July 1, 2011, may cash out up to 700 hours at the time of retirement.

C. Except as provided below, if a full-time employee’s employment is terminated for any reason, other than provided in Section 8 (B), after 60 months of continuous employment, compensation for thirty-five percent (35%) of the maximum of 320 unused sick Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

17 leave accumulated hours, computed to the nearest whole dollar will be paid. Compensation shall be based on the hourly rate of pay at the time of termination.

1. Employees who have in excess of 500 hours of accumulated sick leave credit as of July 1, 2011, shall receive, upon separation other than retirement, thirtyfive percent (35%) payment for all accumulated sick leave credit, up to a maximum of the number of hours accrued as of July 1, 2011, at the salary or wage rate in effect at the time of separation. For example, an employee who has an accumulated sick leave balance of 700 hours on July 1, 2011, may cash out up to 245 hours at the time of separation.

D. The individual employees that have in excess of 500 hours of accrued sick leave as of July 1, 2011, as referred to in Subsections B and C in this Section, shall be identified in a Side Letter on July 1, 2011, that identifies the exact accrued sick leave balance for each affected employee as of July 1, 2011. The Side Letter shall be placed in each affected employee’s Personnel File.

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18 ARTICLE VIII

OTHER LEAVE PROVISIONS
SECTION I. PREGANCY, CHILDBIRTH, AND RELATED MEDICAL CONDITION A. A female employee disabled by pregnancy, childbirth, or a related medical condition may take a leave for a reasonable period of time not to exceed four months and thereafter return to work. The employee shall be entitled to utilize any accrued vacation, compensatory time, and/or sick leave during this period of time. “Reasonable period of time” means that period during which the female employee is disabled on account of pregnancy, childbirth, or a related medical condition.

An employee who plans to take a leave pursuant to this section must give the City reasonable notice of the date the leave shall commence and the estimated duration of the leave.

The City will maintain group medical coverage for employees taking pregnancy disability leave, for the entirety of the four-month leave, at the same level and under the same conditions that coverage would have been provided if the employee had not taken the leave.

An employee, with the advice of her physician, may request a temporary transfer to a less strenuous or hazardous position for the duration of her pregnancy where that transfer can be reasonably accommodated. The City is not required to create additional employment that the City would not otherwise have created, nor shall the City be required to discharge any employee, transfer any employee with more seniority, or promote any employee who is not qualified to perform the job.

Under FMLA, any period of incapacity or treatment due to pregnancy, including prenatal care, is a "serious health condition," and therefore leave taken for that purpose will be counted as part of the 12-week total entitlement under FMLA.

The right to take leave under California Family Rights Act (CFRA) is separate and distinct from the right to take pregnancy disability leave under Government Code Section 12945(a).

An employee's own disability due to pregnancy, childbirth, or related medical conditions is not included as a "serious health condition" under CFRA. Thus, at the end of an employee's four-month pregnancy disability leave under Government Code Section 12945(a), the employee may take CFRA leave of up to twelve workweeks for reason of the birth of her child, if the child has been born by that date. There is no requirement that either the employee or child have a serious health condition or that the employee continue to be disabled by her pregnancy, childbirth, or related medical condition in order to take CFRA leave for the birth of the child. CFRA also provides that the City may (but is not required to) allow an employee to use CFRA leave prior to the birth of the child if the employee has used four months of pregnancy disability leave prior to the birth and the employee's health care provider determines that a continuation of the leave is medically necessary. Doing so would not Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D

19 require the City to provide more than the amount of CFRA leave to which the employee was otherwise entitled.

Under CFRA, the maximum possible combined leave entitlement for both pregnancy disability leave and CFRA leave for the birth of the child is four months and twelve workweeks. That assumes that the employee is disabled by pregnancy, childbirth, or a related medical condition for four months and then requests and is eligible for a full 12 week CFRA leave for the reason of the birth of her child.

For purposes of determining whether an employee who has taken a pregnancy disability leave (which is also a FMLA leave) and who then wants to take a CFRA leave for the birth of her child has met the CFRA employee eligibility requirements, the 12-month period during which the employee must have worked 1,250 hours is the period immediately preceding the employee's first day of FMLA leave based on her pregnancy, not the first day of the subsequent CFRA leave for reason of the birth of her child.

SECTION 2. BEREAVEMENT LEAVE. A full-time employee shall be granted paid Bereavement Leave of no more than 40 hours in any one instance in the event of the death of a member of the employee's immediate family, consisting of spouse, domestic partner, parents, children, stepchildren, grandchildren, grandparents, brother or sister, step-brother or step-sister of the employee as well as the parents or grandparents of the employee's spouse or domestic partner. In the event the employee must travel out of state in connection with the bereavement, the leave shall be extended to 45 hours.

SECTION 3. MILITARY LEAVE. An employee shall be entitled to a leave with pay, less any amount the employee receives or is entitled to as compensation by the Federal or State government, for required active duty in the Armed Forces Reserve, after full-time continuous employment by the City for at least 12 months, for a period not to exceed 30 calendar days. A further leave without pay shall be granted if a required encampment extends longer than 30 calendar days. At the conclusion of the military duty, the employee shall be permitted to resume their former position in the City employment. If military leave is taken prior to 12 months of continuous full-time employment, the leave shall be without pay. An employee eligible for paid leave may select the option of receiving full pay and turning over to the City their payment for military service, or may request the difference between the payment for military service and their regular salary.

SECTION 4. PERSONAL LEAVE. Leaves of absence without pay, each not to exceed one calendar month, may be granted by a Department Head in his/her sole discretion. Leaves of absence without pay, each not to exceed one year, may be granted by the City Manager in hers/his sole discretion.

Requests for all leaves of absence without pay shall first be made to the Department Head.

SECTION 5. ABSENCE WITHOUT LEAVE. Any absence from work without leave or without a post-absence acceptable excuse, or pursuant to a right established by this MOU, shall, in and of itself, be sufficient grounds for termination of employment.

SECTION 6. BENEFIT PROVISIONS FOR LEAVES WITHOUT PAY. Any employee on an approved leave without pay for any reason, in excess of 30 days, shall not be entitled to paid City Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D