20 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. ADMINISTRATIVE LEAVE. Employees shall be entitled to administrative leave with no loss in salary for a total of 40 hours per fiscal year subject to the approval of their Department Head.
SECTION 8. 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 his or her 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.
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. Prior to enrolling in a class for desirable training, a full-time employee desiring reimbursement for their expenses shall obtain the Department Head's approval as to course content and its relationship to the employee's employment with the City. In the event the Department Head approves such request, which approval shall be in the Department Head'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 City Manager, 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.
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 in Section 5 of Article III 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 (PEMCHA), 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 $507.49* $160* $667.49
Employee + one $996.49* $160* $1,156.49
Employee + two or more $1,255.49* $160* $1,415.49
Effective January 1, 2027
Employee Only $505.49* $162* $667.49
Employee + one $994.49* $162* $1,156.49
Employee + two or more $1,253.49* $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, 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.
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 the plan having a 30-day elimination period
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25 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
ER
Contribution
EE
Contribution
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. LPPEA 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. In addition to the provisions contained in Article X, Section 1(F), the City shall contribute 1% of an employee’s salary to a deferred compensation plan. 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 Water Division.
A. Eleven 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 REIMBURSEMENT.
A. The City shall provide an employee in the Water Division an annual cash boot reimbursement of up to $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 once per fiscal year on the first available paycheck following the employee providing a copy of the boot receipt to the City.
C. For newly hired employees, 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 reimbursement 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 LPPEA 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 LPPEA.
SECTION 3. OTHER PROVISIONS. If, at any point during the term of this Resolution, 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 not be 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 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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30 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 meet with the employee within ten (10) calendar days of receiving the appeal. Within ten (10) calendar days of the meeting, the City Manager shall respond to 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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31 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.
M. Performance evaluations, including performance improvement plans, 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 Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D
32 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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33 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 part-time 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 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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34 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 he/she is qualified where the person has held the position previously with the City. After an employee is informed of an impending layoff or "bump down" he/she must inform the City Manager within five working days of his/her 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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35 ARTICLE XVII
LPPEA 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 LPPEA 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 LPPEA.
SECTION 3. USE OF BULLETIN BOARDS. Space shall be made available to LPPEA on departmental bulletin boards within the Representation Unit provided such use does not interfere with the needs of the department.
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36 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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37 ARTICLE XIX
NONDISCRIMINATION
SECTION 1. The City and the La Palma Professional 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. LPPEA shall not discriminate in membership or representation on any basis cited in Section 1 of this Article.
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38 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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39 ARTICLE XXI
MAINTENANCE OF MEMBERSHIP
All employees who are members of the Association or who thereafter become members of the Association, shall remain members of the Association, except that any employee 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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40 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 his/her 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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41 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 refuse 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.
25. Intentionally misrepresenting information or facts in any statement, declaration Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D
42 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.
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 Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D
43 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.
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.
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44 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 itself to support a finding unless it would be admissible 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 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 Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D
45 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 his/her 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 hearing as possible and in no event later than 30 days after conducting the hearing. The Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D
46 hearing officer’s 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. They 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 his/her 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 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 Docusign Envelope ID: C8A128EE-6F2A-4862-B841-80B8105A4EB1 Docusign Envelope ID: 91C20E14-0068-46BB-B5EB-076DB102906D
47 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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48 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 PROFESSIONAL CITY OF LA PALMA
EMPLOYEES ASSOCIATION
________________________ ___________________________
jaNell Adams, President Michael J. Egan, Interim City Manager Dated: Dated:
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ATTACHMENT “A”
49 Step A Step B Step C Step D Step E Step F Step G
Accounting Supervisor
Annual 87,225.64 91,586.92 96,166.27 100,974.58 106,023.31 111,324.47 116,890.70 Monthly 7,268.80 7,632.24 8,013.86 8,414.55 8,835.28 9,277.04 9,740.89 Biweekly 3,354.83 3,522.57 3,698.70 3,883.64 4,077.82 4,281.71 4,495.80 Hourly 41.9354 44.0322 46.2338 48.5455 50.9727 53.5214 56.1975 Community Services Supervisor
Annual 87,225.64 91,586.92 96,166.27 100,974.58 106,023.31 111,324.47 116,890.70 Monthly 7,268.80 7,632.24 8,013.86 8,414.55 8,835.28 9,277.04 9,740.89 Biweekly 3,354.83 3,522.57 3,698.70 3,883.64 4,077.82 4,281.71 4,495.80 Hourly 41.9354 44.0322 46.2338 48.5455 50.9727 53.5214 56.1975 Deputy City Clerk/Executive Assistant
Annual 79,070.13 83,023.64 87,174.82 91,533.56 96,110.24 100,915.75 105,961.54 Monthly 6,589.18 6,918.64 7,264.57 7,627.80 8,009.19 8,409.65 8,830.13 Biweekly 3,041.16 3,193.22 3,352.88 3,520.52 3,696.55 3,881.38 4,075.44 Hourly 38.0145 39.9152 41.9110 44.0065 46.2068 48.5172 50.9430 Human Resources Analyst
Annual 75,023.87 78,775.06 82,713.82 86,849.51 91,191.98 95,751.58 100,539.16 Monthly 6,251.99 6,564.59 6,892.82 7,237.46 7,599.33 7,979.30 8,378.26 Biweekly 2,885.53 3,029.81 3,181.30 3,340.37 3,507.38 3,682.75 3,866.89 Hourly 36.0692 37.8726 39.7663 41.7546 43.8423 46.0344 48.3361 Management Analyst
Annual 79,070.13 83,023.64 87,174.82 91,533.56 96,110.24 100,915.75 105,961.54 Monthly 6,589.18 6,918.64 7,264.57 7,627.80 8,009.19 8,409.65 8,830.13 Biweekly 3,041.16 3,193.22 3,352.88 3,520.52 3,696.55 3,881.38 4,075.44 Hourly 38.0145 39.9152 41.9110 44.0065 46.2068 48.5172 50.9430 Water Supervisor
Annual 92,454.83 97,077.58 101,931.45 107,028.03 112,379.43 117,998.40 123,898.32 Monthly 7,704.57 8,089.80 8,494.29 8,919.00 9,364.95 9,833.20 10,324.86 Biweekly 3,555.96 3,733.75 3,920.44 4,116.46 4,322.29 4,538.40 4,765.32 Hourly 44.4494 46.6719 49.0055 51.4558 54.0286 56.7300 59.5665 La Palma Professional Employees Association
Classification and Salary Table
July 1, 2025 to June 30, 2026
Pursuant to Article III, Section 7A of the current MOU
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ATTACHMENT “B”
50 Step A Step B Step C Step D Step E Step F Step G
Accounting Supervisor
Annual 90,714.66 95,250.40 100,012.92 105,013.56 110,264.24 115,777.45 121,566.32 Monthly 7,559.56 7,937.53 8,334.41 8,751.13 9,188.69 9,648.12 10,130.53 Biweekly 3,489.03 3,663.48 3,846.65 4,038.98 4,240.93 4,452.98 4,675.63 Hourly 43.6128 45.7935 48.0831 50.4873 53.0117 55.6622 58.4453 Community Services Supervisor
Annual 90,714.66 95,250.40 100,012.92 105,013.56 110,264.24 115,777.45 121,566.32 Monthly 7,559.56 7,937.53 8,334.41 8,751.13 9,188.69 9,648.12 10,130.53 Biweekly 3,489.03 3,663.48 3,846.65 4,038.98 4,240.93 4,452.98 4,675.63 Hourly 43.6128 45.7935 48.0831 50.4873 53.0117 55.6622 58.4453 Deputy City Clerk/Executive Assistant
Annual 82,232.94 86,344.59 90,661.81 95,194.91 99,954.65 104,952.38 110,200.00 Monthly 6,852.74 7,195.38 7,555.15 7,932.91 8,329.55 8,746.03 9,183.33 Biweekly 3,162.81 3,320.95 3,486.99 3,661.34 3,844.41 4,036.63 4,238.46 Hourly 39.5351 41.5118 43.5874 45.7668 48.0551 50.4579 52.9808 Human Resources Analyst
Annual 78,024.83 81,926.07 86,022.37 90,323.49 94,839.66 99,581.65 104,560.73 Monthly 6,502.07 6,827.17 7,168.53 7,526.96 7,903.31 8,298.47 8,713.39 Biweekly 3,000.95 3,151.00 3,308.55 3,473.98 3,647.68 3,830.06 4,021.57 Hourly 37.5119 39.3875 41.3569 43.4248 45.5960 47.8758 50.2696 Management Analyst
Annual 82,232.94 86,344.59 90,661.81 95,194.91 99,954.65 104,952.38 110,200.00 Monthly 6,852.74 7,195.38 7,555.15 7,932.91 8,329.55 8,746.03 9,183.33 Biweekly 3,162.81 3,320.95 3,486.99 3,661.34 3,844.41 4,036.63 4,238.46 Hourly 39.5351 41.5118 43.5874 45.7668 48.0551 50.4579 52.9808 Water Supervisor
Annual 96,153.03 100,960.68 106,008.71 111,309.15 116,874.61 122,718.34 128,854.25 Monthly 8,012.75 8,413.39 8,834.06 9,275.76 9,739.55 10,226.53 10,737.85 Biweekly 3,698.19 3,883.10 4,077.26 4,281.12 4,495.18 4,719.94 4,955.93 Hourly 46.2274 48.5388 50.9657 53.5140 56.1897 58.9992 61.9492 La Palma Professional Employees Association
Classification and Salary Table
July 1, 2026 to June 30, 2027
Pursuant to Article III, Section 7B of the current MOU
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ATTACHMENT “C”
51 Step A Step B Step C Step D Step E Step F Step G
Accounting Supervisor
Annual 94,343.25 99,060.41 104,013.43 109,214.10 114,674.81 120,408.55 126,428.98 Monthly 7,861.94 8,255.03 8,667.79 9,101.18 9,556.23 10,034.05 10,535.75 Biweekly 3,628.59 3,810.02 4,000.52 4,200.54 4,410.57 4,631.10 4,862.65 Hourly 45.3573 47.6252 50.0065 52.5068 55.1321 57.8887 60.7832 Community Services Supervisor
Annual 94,343.25 99,060.41 104,013.43 109,214.10 114,674.81 120,408.55 126,428.98 Monthly 7,861.94 8,255.03 8,667.79 9,101.18 9,556.23 10,034.05 10,535.75 Biweekly 3,628.59 3,810.02 4,000.52 4,200.54 4,410.57 4,631.10 4,862.65 Hourly 45.3573 47.6252 50.0065 52.5068 55.1321 57.8887 60.7832 Deputy City Clerk/Executive Assistant
Annual 85,522.26 89,798.37 94,288.29 99,002.70 103,952.84 109,150.48 114,608.00 Monthly 7,126.85 7,483.20 7,857.36 8,250.23 8,662.74 9,095.87 9,550.67 Biweekly 3,289.32 3,453.78 3,626.47 3,807.80 3,998.19 4,198.10 4,408.00 Hourly 41.1165 43.1723 45.3309 47.5975 49.9773 52.4762 55.1000 Human Resources Analyst
Annual 81,145.82 85,203.11 89,463.27 93,936.43 98,633.25 103,564.91 108,743.16 Monthly 6,762.15 7,100.26 7,455.27 7,828.04 8,219.44 8,630.41 9,061.93 Biweekly 3,120.99 3,277.04 3,440.89 3,612.94 3,793.59 3,983.27 4,182.43 Hourly 39.0124 40.9630 43.0112 45.1617 47.4198 49.7908 52.2804 Management Analyst
Annual 85,522.26 89,798.37 94,288.29 99,002.70 103,952.84 109,150.48 114,608.00 Monthly 7,126.85 7,483.20 7,857.36 8,250.23 8,662.74 9,095.87 9,550.67 Biweekly 3,289.32 3,453.78 3,626.47 3,807.80 3,998.19 4,198.10 4,408.00 Hourly 41.1165 43.1723 45.3309 47.5975 49.9773 52.4762 55.1000 Water Supervisor
Annual 99,999.15 104,999.11 110,249.06 115,761.51 121,549.59 127,627.07 134,008.42 Monthly 8,333.26 8,749.93 9,187.42 9,646.79 10,129.13 10,635.59 11,167.37 Biweekly 3,846.12 4,038.43 4,240.35 4,452.37 4,674.98 4,908.73 5,154.17 Hourly 48.0765 50.4803 53.0044 55.6546 58.4373 61.3592 64.4271 La Palma Professional Employees Association
Classification and Salary Table
July 1, 2027 to June 30, 2028
Pursuant to Article III, Section 7C of the current MOU
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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 POLICE ASSOCIATION
WHEREAS, the City of La Palma (City) and the La Palma Police Association (LPPA) have met and conferred in good faith; and
WHEREAS, the City and the LPPA 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 LPPA 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 Police 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 Police Association
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TABLE OF CONTENTS
ARTICLE I TERM OF AGREEMENT .......................................................................... 1 ARTICLE II RECOGNITION .......................................................................... 2 ARTICLE III COMPENSATION .......................................................................... 3 ARTICLE IV CONDITIONS OF EMPLOYMENT.........................................................................11 ARTICLE V HOLIDAYS ..........................................................................12 ARTICLE VI VACATIONS ..........................................................................14 ARTICLE VII SICK LEAVE ..........................................................................17 ARTICLE VIII OTHER LEAVE PROVISIONS ..........................................................................21 ARTICLE IX TRAINING ..........................................................................24 ARTICLE X GROUP INSURANCE ..........................................................................25 ARTICLE XI RETIREMENT ..........................................................................29 ARTICLE XII DEFERRED COMPENSATION ..........................................................................30 ARTICLE XIII SCHEDULE ..........................................................................31 ARTICLE XIV COMPLETION OF MEET AND CONFER..............................................................32 ARTICLE XV GRIEVANCE PROCEDURE ..........................................................................33 ARTICLE XVI LAYOFF PROCEDURE FOR NON SWORN EMPLOYEES.................................36 ARTICLE XVII INTEGRATION AND CONSTRUCTION ...............................................................38 ARTICLE XVIII SEPARABILITY ..........................................................................39 ARTICLE XIX IMPLEMENTATION ..........................................................................40 ATTACHMENT A – SALARY TABLE (FY 2025-26) .......................................................................41 ATTACHMENT B – SALARY TABLE (FY 2026-
27) 42
ATTACHMENT C – SALARY TABLE (FY 2027-28)........................................................................43 Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
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 Police Association (LPPA) 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 recognizes the La Palma Police Association as the majority representative of the regular full time employees in the bargaining unit, which include all classifications as follows:
Civilian Investigator
Executive Assistant to the Chief of Police
Police Dispatcher
Police Officer
Police Officer Recruit
Police Records Clerk
Police Sergeant
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3 ARTICLE III
COMPENSATION
SECTION 1. The basic compensation plan for all full-time officers and 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
A. Regular Full Time - Positions with regular characteristics requiring continuous employment of 160 hours or more work per month based upon the schedules in this MOU.
SECTION 3. COMPENSATION - REGULAR FULL TIME CATEGORY
A. Compensation shall be determined from salary schedules, consisting of wage ranges, each of which includes six steps, or rates of pay; each horizontal step being five percent greater than the previous step.
1. Police Officer Recruit position base salary to be set at 10% below Police Officer base salary.
B. Initial Employment.
1. The rate of compensation for initial employment in any class shall be at Step A, provided that the City Manager, in his/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 a performance evaluation rating of satisfactory or above.
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. Economic uncertainty or hardship shall be defined as a major revenue loss equaling 20% of the General Fund from a single or combined source including, but 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. If the Utility Users Tax (UUT) rate is less than 5%, merit increases shall not be suspended until the City Council reviews the Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
4 rate and determines whether or not it should be raised.
3. An employee may be advanced within his or her respective compensation range in accordance with the following schedule:
Advancement to the next step at the completion of an employee’s initial six months of meritorious service in the classification, if the employee is hired at Step A, as determined by the Department Head.
Advancement to the next step at the completion of an employee’s initial twelve months of meritorious 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 meritorious service in the prior step, or if the employee is hired at Step B or above, as determined by the Department Head.
4. Meritorious 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 Police Chief 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 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 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 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 Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
5 the employee in such step and make such changes in anniversary dates as may be deemed appropriate.
F. Reduction in Compensation. The compensation of any employee may be reduced for good cause, by one or more steps, 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 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
A. Overtime pay will be paid at no less than time and one-half the FLSA regular rate of pay. Overtime shall be defined as actual hours worked beyond 160 hours in a 28-day work period for sworn employees. Overtime shall be defined as actual hours worked which exceed 40 hours in any work week (7 day work period) for non-sworn employees. “Actual Hours” includes actual time worked and excludes compensatory, holiday, vacation, and sick leave.
A “5/40 schedule” is defined as an eight (8) hour per day, five (5) day workweek. A “9/80 schedule” is defined as eight (8) nine (9) hour workdays and one (1) eight (8) hour workday over two weeks with the start of the work period at the mid-point of the eight-hour shift. A “4/10” schedule consist of four shifts in each 7 day work period made up of 10 hours. Nonsworn employees working 12.3 hour shifts work a schedule with 43.05 hours in a 7 day work period beginning at the mid-point of the last day of their shift. Employees who are called to work for an additional shift without a minimum of 12 hours’ notice will be paid at overtime (time and one-half) rates. Such hours will be calculated separately from “actual hours worked beyond 160 hours” for sworn employees as they will already be compensated at overtime (time and one-half) rates.
B. The Police Chief may prescribe minimum and reasonable periods of overtime work to meet operational needs of the department. Except as otherwise provided herein, overtime Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
6 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 hours, may be granted at the discretion of the Police Chief in lieu of overtime compensation.
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 will be paid out in the pay period it was earned.
C. Standby Duty. Employees assigned to Standby Duty are required by the Police Chief or his/her designee to remain in a “standby” status. Standby duty in the Police Department shall be compensated at the rate of two hours of compensation for each twelve hours of such duty. Employees in standby status are not assigned work and such hours are not considered as hours worked. Employees in standby status are responsible to keep themselves ready to respond for work should the need arise. If called back to work, employees shall receive Call Back compensation as defined in this Section in addition to the Standby Duty compensation.
D. Court Standby Duty. Employees required by the District Attorney’s Office or other appropriate authority to remain in a “standby” or “on call” status outside their regularly assigned shift of work, shall be compensated at the rate of one and one half times the employee’s hourly rate for a minimum of two hours if placed in such status during the a.m. and for a minimum of two hours if placed in such status during the p.m. Any time in excess of the stated minimums, which is spent in the described status, shall be compensated for at the rate of one and one-half times the employee’s then existing hourly rate. Any time already compensated at the Overtime premium rate (time and one-half) is not included in the calculation of hours worked for purposes of the overtime threshold in Section 4 (B) above.
E. Call Back and Emergency Overtime Duty. Employees shall receive a minimum of two hours overtime compensation at time and a half for hours worked for any call, which requires them to return to duty. Any time already compensated at the Overtime premium rate (time an one-half) is not included in the calculation of hours worked for purposes of the overtime threshold in Section 4 (A) above.
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 reimbursements 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.
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7 prospective juror for regular days off (e.g. alternate Fridays or regularly scheduled days off). Employees will be 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 thirty (30) uninterrupted calendar days or more, said increased compensation to be five percent (5%) over his/her current regular compensation. Such compensation shall be retroactive to the first day of the assignment.
D. Court Appearances. Police Department: For required court appearances when offduty, employees in the classification of Police Dispatcher, Police Officer Recruit, Police Officer, and Police Sergeant shall be paid for time spent in court, plus travel time, at their overtime hourly rate with a minimum of two hours of such compensation. If a City vehicle is not available, mileage will be paid for personally provided transportation. Employees who are required to appear in court during regular on-duty hours, in connection with City business, shall receive regular compensation for the number of such on-duty hours spent in court, plus travel time. 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. Incentive Pay.
1. P.O.S.T. Certificates. Police Officers and Sergeants holding P.O.S.T. certificates shall be reimbursed at the rate of two and one-half percent above base for Intermediate Certificate and five percent above base for Advanced Certificate. This shall not be used for merit or disciplinary purposes.
2. Advanced Degrees. Police Officers, Sergeants, and Dispatchers having college degrees shall be paid at the rate of two and one-half percent above base for an Associate in Arts degree and five percent above base for a Bachelor of Arts Degree. Said educational benefits are not in addition to pre-existing and continuing incentive payments which attach to the holding of Intermediate or Advanced P.O.S.T. Certificates. Eligibility for those pay increments attaching to either an Associate of Arts or Bachelor of Arts Degree is predicated upon both degrees containing job-related courses.
3. Police Officers and Police Sergeants who meet the requirements of the Professional Development Program, as described in Chapter 10, Section 1005 of the La Palma Police Department Policy Manual, shall receive the following incentives:
Master Police Officer $ 50.00 per month
Master Police Officer II $ 75.00 per month
Professional Officer $100.00 per month
Corporal $125.00 per month
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8 Sergeant II $ 50.00 per month
Sergeant III $ 75.00 per month
Sergeant IV $100.00 per month
4. Full-time sworn employees hired on or after January 1, 2013, and qualify under the PEPRA Safety retirement tier per Article XI, Section 1, shall be paid at the rate of one and one-quarter per cent (1.25%) above base salary.
F. Longevity Pay. Employees in the classifications of Police Officer, Police Sergeant, and Police Dispatcher shall be eligible for annual longevity pay based on their continuous full-time service with the La Palma Police Department, measured from their original hiring date as a Police Officer or Dispatcher with the La Palma Police Department. Eligible employees shall receive a one-time annual payment of $5,000 upon reaching ten (10) years of service, $7,500 upon reaching fifteen (15) years of service, and $10,000 upon reaching twenty (20) years of service. Longevity payments shall be issued in the pay period following the employee’s qualifying anniversary date and each anniversary thereafter, provided the employee is in active employment status at the time of payment.
G. Uniform Allowance. Full-time employees in the classifications of Police Dispatcher, Police Records Clerk, Police Officer, Police Officer Recruit, and Police Sergeant shall receive a uniform allowance of $34.75 per two week pay period for the maintenance of uniforms and equipment.
1. For newly hired employees in the classification of Police Dispatcher, Police Records Clerk, Police Officer, and Police Officer Recruit, the City will pay for up to $500 of initial uniform costs.
H. 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.
I. Equipment Reimbursement. Provision to each sworn, affected employee of an amount equal to the actual cost of the repair, or when necessary, replacement, of authorized law enforcement uniforms or equipment that are owned by the employee and that are damaged in the course and scope of their employment: Authorized items may change from time to time and shall be determined by the Chief of Police. Replacement shall be at the discretion of the Police Chief and on approval of the City Manager.
J. Assignment as Detective. Assignment to the detective bureau shall be based upon the needs of the Department with consideration given to merit and length of service with the Department. Each affected employee assigned as a Detective will receive special compensation of 5% above base salary. Assignment as a Detective is the result of an administrative assignment and the removal of an Affected Employee from a Detective assignment, in and of itself, shall not be evidence of the removal being the result of disciplinary action. However, nothing contained herein shall constitute a waiver of any Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
9 Affected Employee's right to pursue a claim that a reassignment or transfer is disciplinary in nature.
K. Assignment as School Resource Officer. Assignment as a School Resource Officer shall be based upon the needs of the Department and available funding. Each affected employee assigned as a School Resource Officer will receive special compensation of 5% above base salary.
L. Briefing Compensation. Each affected employee occupying the classifications of Police Officer, Police Sergeant, and Police Dispatcher, scheduled to perform patrol or dispatcher services, shall be compensated at the rate of eighteen (18) minutes (0.3 hours) for each shift worked and will be included in “actual hours” worked. Such compensation relates to such classified individual being required by the City to be present at an eighteen minute "briefing period" immediately prior to commencement of their regularly scheduled shift. .
Employees who are assigned to the Detective Bureau are not required by the City to attend pre-shift briefing and accordingly, shall not be compensated in excess of their scheduled shifts (4/10, 9/80, etc.). Employees of the Detective Bureau who work an additional shift in a patrol or dispatcher capacity and attend the eighteen minute "briefing period" will be compensated at a rate of eighteen (18) minutes (0.3 hours) for each shift worked in that capacity.
It is also noted, that employees who work 13 shifts of 12.3 hours during any 28 day cycle (two pay periods) will have worked 159.9 hours of the required 160 hours. As may be needed from time to time, the City will administratively add the additional 0.1 hours to an employees pay sheet as may be necessary to reach the required 80 hours in one pay period.
M. Bilingual Pay. Employees passing the City’s bilingual testing process shall receive an additional $150 per month for speaking the language of Cambodian, 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.
N. Field Training Officer Pay. Employees performing the duties of Police Officer Field Training Officer on a full-time basis shall receive $1.15 per hour in addition to their base salary for each hour they are serving as a training officer. Employees performing the duties of Communications Training Officer on a full-time basis shall receive $.87 per hour for each hour they are serving as a training officer.
O. Police Corporal-in-Charge Pay. There may be a maximum of four Police Corporal assignments, each assigned to one of the four Patrol shifts. In the absence of a Patrol Sergeant and as needed, Corporals will act in the capacity of shift supervisor. Corporals will be compensated $100 per shift only when acting as Patrol Supervisor. Corporals may be assigned to non-Patrol assignments at the discretion of the Police Chief.
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 Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
10 requests). Additional change requests may be granted upon the 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 5.0% for sworn and non-sworn represented classifications.
B. Attachment B shall become effective the pay period that includes July 1, 2026, and consists of a base salary increase of 4.0% for sworn and non-sworn represented classifications
C. Attachment C shall become effective the pay period that includes July 1, 2027, and consists of a base salary increase of 4.0% for sworn and non-sworn represented classifications
SECTION 8. SCHEDULE OF WORK.
Non-sworn employees are assigned to a seven day work period. All non-sworn employees, with the exception of Police Dispatchers, shall work either a “9/80” schedule or “4/10” schedule. A “9/80” schedule is defined as eight (8) nine (9) hour workdays and one (1) eight (8) hour workday over two weeks with the start of the work period at the mid-point of the eight-hour shift and total 80 hours. A “4/10” schedule consist of four shifts in each 7 day work period made up of 10 hours each and total 80 hours. 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. The normal schedule for sworn employees working in Patrol is 79.95 hours in a 14- day work period. Non-sworn employees working 12.3 hour shifts (Dispatch) work a schedule with
43.05 hours in a 7 day work period beginning at the mid-point of the last day of their shift.
SECTION 9. DIRECT DEPOSIT.
All employees are required to sign up for direct deposit.
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11 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.
A. The City reserves the right to designate a doctor, or doctors, for all required examinations, and the costs of any required examinations will be borne by the City.
B. Each sworn employee who is 35 or more is entitled to receive an annual physical examination at a place designated by the City and City expense.
SECTION 4. PROBATION PERIOD. A regular full time employee shall be on probation for a period of 18 months from the date of commencement of employment. The probation period for any employee may be extended for an additional period of six months by the Department Head with the approval of the City Manager, but 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 accordance with State and Federal Laws.
SECTION 5. OTHER EMPLOYMENT. No employee shall engage in any other employment, which 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.
SECTION 6. CITY VEHICLES. Employees are not authorized to take home a City vehicle without the prior, written consent of the Police Chief or designee. Such privilege is intended for temporary exceptional situations and the timeframe for the approval shall be specified in writing by the Police Chief or designee.
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12 ARTICLE V
HOLIDAYS
SECTION 1. DESIGNATED HOLIDAYS. Designated holidays shall be New Year's Day, Martin Luther King, Jr. Day, President's 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(H). When a designated holiday falls on Saturday, the day of absence shall be the preceding Friday. When a designated holiday falls on Sunday, the day of absence shall be the following Monday.
A. For the designated Holidays, employees are eligible for ten (10) hours of paid time off for each full day. Unless operational needs, as determined by the Police Chief, require that the time off be taken at some other date, the time off will be taken on the scheduled Holiday. If the Holiday hours paid on a Holiday or substituted day off are less than the employee's regularly scheduled hours, the employee shall use accrued Compensatory Time Off or Vacation Leave to ensure that hours paid will be the same as would regularly be paid for the day. An employee may also work the difference in hours in lieu of utilizing Compensatory or Vacation Pay.
B. Employees who work on a designated holiday (as defined in Article V, Section 1, Designated Holidays), are entitled to earn compensatory time off or receive pay at the straight time rate, in addition to their regular pay. Employees who do not work on a holiday are entitled to earn compensatory time or pay at the straight time rate, which shall be accrued/paid in the same pay period as the holiday.
C. All full-time employees shall be granted forty (40) hours of absence, termed “floating holiday”, in addition to designated holidays. Time off for “floating holidays” may be selected by the employee with the prior concurrence of the Department Head. “Floating Holiday” time shall be taken between July 1 and June 30 of the fiscal year. For new employees, floating holiday hours shall be prorated over the fiscal year based on the employee’s employment date.
1. If “floating holiday” time is not utilized by the end of the fiscal year, it shall be converted to cash and disbursed to the employee at the FLSA regular rate at the time of such disbursal.
D. 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." E. Holiday pay for Full-Time Employees. Full-time employees covered by this agreement, shall be paid holiday pay on the basis of an ten (10) hour day. If the employee would have worked in excess of ten (10) hours, the employee will be required to utilize Compensatory or Vacation Pay to supplement the difference.
F. An employee absent from work on a job-incurred illness or injury-related leave of Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
13 absence which provides for full compensation without loss of accumulated sick leave, shall not be entitled to receive any additional pay or other holiday benefits under this article during any period in which a holiday falls.
G. No absence under the holiday provisions in this article shall be charged to or paid from sick leave accumulated benefits.
H. For employees working in divisions other than Patrol or Dispatch, when Christmas falls on a Friday, eight 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, eight hours of floating holiday will be given in lieu of the Christmas Eve holiday.
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14 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. Vacation selection shall be based upon seniority according to rank in assignment.
A. Schedule for Tier One Full-time Employees (Hired prior to July 1, 2011).
1. 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.
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 13th month to the completion of 120 months of continuous employment.
3. 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.
4. 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.
5. 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).
1. 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.
2. 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.
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15 3. 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.
4. 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 180 months of continuous employment.
5. 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 181st month to the completion of 240 months of continuous employment.
6. Vacation. Credit shall be computed on the basis of 7.39 hours per pay period (192.14 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. In the event an employee utilizes vacation accrual during the work period, and is scheduled or called in for an extra shift during the same work period that does not qualify for overtime (time and one-half), the employee has the option to 1) be paid for both the vacation hours utilized and the hours of the additional shift OR 2) substitute the hours of the additional shift on an hour for hour basis for the vacation hours utilized and have such vacation hours restored to his or her such accrued vacation bank.
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 six 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 Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
16 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, except as provided below.
G. Vacation Cash-out Option. Each full-time employee shall have the option of “cashing out” up to one hundred (100) hours of vacation within a fiscal year. This option may be exercised up to two times in each fiscal year, up to a cumulative maximum of one hundred (100) hours. The employee must retain a bank of at least 40 hours of vacation following the cashout. Cashout requests shall be processed and included on the next available regular paycheck following an approved request to cashout the leave. This option can be exercised any time during the year.
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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17 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. If an employee’s sick leave balance reaches 760 hours, they will not accrue additional hours until their unused sick leave balance falls below 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 of 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.
F. In the event an employee utilizes sick accrual during the work period, and is scheduled or called in for an extra shift during the same work period that does not qualify for overtime (time and one-half), the employee has the option to 1) be paid for both the sick hours utilized and the hours of the additional shift OR 2) substitute the hours of the additional shift on an hour for hour basis for the sick hours utilized and have such sick hours restored to his or her such accrued vacation bank.
SECTION 4. PERSONAL NECESSITY LEAVE. Each employee shall be afforded the opportunity to use up to two working days (based on shift assignment--e.g. 8-hour, 9-hour, 10- hour or 12.3-hour day) of sick leave benefits per fiscal year (on a non-cumulative basis) for personal necessity leave, for personal unplanned events, which may need immediate attention.
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18 Personal necessities shall include, but not be limited to, family emergencies, catastrophic illness of a family member not residing in the employee's household, or imminent danger to the employee's home or other valuable property.
SECTION 5. SICK LEAVE CASH-OUT OPTION. An employee shall have the option of "cashing out" up to 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 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 non-sworn 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 a sixty (60) day period, 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.
The above notwithstanding, in the event of temporary disability, extending beyond the first sixty (60) day period, 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.
B. Benefits related to job-incurred illness or injury for sworn members of the Police Department shall be as prescribed by state law.
C. Non-sworn or Sworn 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. an employee would be paid if injured at the end of a shift until released from emergency care or admitted to a hospital and for regularly scheduled hours thereafter but not for hospital stays or for medical appointments on a weekend or regularly scheduled day off).
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.
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19 B. If an employee's sick leave absence extends beyond three consecutive working days for reasons of personal illness or injury, a written statement may be required, certifying that the employee is 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 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.
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 hired before July 1, 2011, 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 500 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.
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20 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. A full-time employee hired on or after July 1, 2011, upon a regular 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.
D. Except as provided below, if a full-time employee hired before July 1, 2011, is terminated for any reason, other than provided in Section 8 (B), after 60 months of continuous employment, compensation for 35 percent (35%) of the maximum 760 unused sick leave accumulated hours, computed to the nearest whole dollar, of the unused sick leave accumulated hours will be paid. Compensation shall be based on the hourly rate of pay at the time of termination.
E. If a full-time employee hired on or after July 1, 2011, is terminated for any reason, other than provided in Section 8 (C), after 60 months of continuous employment, compensation for 35 percent (35%) of the maximum 760 unused sick leave accumulated hours, computed to the nearest whole dollar, of the unused sick leave accumulated hours will be paid. Compensation shall be based on the hourly rate of pay at the time of termination.
F. 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(1) and D(1) in this Section, shall be identified in a Side Letter, 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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21 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 require Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
22 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 five days.
SECTION 3. MILITARY LEAVE. An Employee shall be entitled to a leave with pay 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 his or her former position in the City employment. If the military leave is taken prior to 12 months of continuous full-time employment, the leave shall be without pay.
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 her/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 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.
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23 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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24 ARTICLE IX
TRAINING
SECTION 1. REQUIRED TRAINING.An employee who is required by theirDepartment 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 full-time 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 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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25 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.
1. Tier One Safety Employees and Dispatchers (Dispatchers, Police Officers, and Police Sergeants hired before July 1, 2011). The City will contribute the following amounts toward the cost of the premiums for medical insurance under the Public Employees Medical and Hospital Care Act (PEMHCA) for each employee, and his or her eligible dependents, and for each annuitant in PERS and his or her eligible dependents:
Effective January 1, 2009 $416.49
2. Tier Two Safety Employees and Police Dispatchers (Police Dispatchers, Police Officers, and Police Sergeants hired on or after July 1, 2011) and Miscellaneous Employees. For Tier Two Safety Employees and Police Dispatchers and Non-Sworn Employees covered by this MOU, the City shall pay the medical plan premium up to the maximum caps required by the PEMHCA:
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.
1. Tier One Safety Employees and Police Dispatchers (Police Dispatchers, Police Officers, and Police Sergeants hired before July 1, 2011). For Tier One Police employees covered by this MOU, the City will make a monthly fringe benefit contribution to each eligible member of the unit to be used toward the health benefit cafeteria plan. These funds shall only be used for eligible plans included with the cafeteria plan. The fringe benefit contribution to those full-time employees who enroll in one of the PERS health plans shall be in the following manner.
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26 Effective July 1, 2025
Plan Fringe Benefit PEMHCA Amount Total Combined Benefit Employee Only $505.00 $416.49 $921.49
Employee + one $995.00 $416.49 $1,411.49
Employee + two or more $1,254.00 $416.49 $1,670.49
2. Tier Two Safety Employees and Police Dispatchers (Police Dispatchers, Police Officers, and Police Sergeants hired on or after July 1, 2011) and Non-Sworn Employees. The City shall make a monthly fringe benefit contribution to each eligible Tier Two Police 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 fulltime employees who enroll in one of the PERS health plans shall be in the following manner.
Effective July 1, 2025
Plan Fringe Benefit PEMHCA Amount Total Combined Benefit Employee Only $763.49 $158 $921.49
Employee + one $1,253.49 $158 $1,411.49
Employee + two or more $1,512.49 $158 $1,670.49
Effective July 1, 2026
Plan Fringe Benefit PEMHCA Amount Total Combined Benefit Employee Only $761.49 $160* $921.49
Employee + one $1,251.49 $160* $1,411.49
Employee + two or more $1,510.49 $160* $1,670.49
Effective July 1, 2027
Plan Fringe Benefit PEMHCA Amount Total Combined Benefit Employee Only $759.49* $162* $921.49
Employee + one $1,249.49* $162* $1,411.49
Employee + two or more $1,508.49* $162* $1,670.49
*Estimated
D. If an employee selects medical insurance in which the premiums are less than the total combined benefit for which they are eligible, the employee forfeits any unused monies.
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 $921.49 monthly cash payout. The payment shall be calculated and distributed with the second paycheck of each month. Full-time Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
27 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.
F. 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.
G. Tier One Safety Employees and Police Dispatchers (Police Dispatchers, Police Officers, and Police Sergeants hired before July 1, 2011), separating from the City as a result of either service or disability retirement shall be maintained as an insured member of the City's group medical plan, as it from time to time exists, with the City paying the greater of the amount described in Section 1(B) above or that required by PEMHCA (22892 CA Gov. Code). If a retiree who currently is eligible to receive medical insurance benefits, upon retirement becomes 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.
H. 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 (E) above, is the first of the second month following separation.
I. 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 an 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.
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28 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.
E. Child dependents are covered through age 25.
F. 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 related 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, 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.
SECTION 4. DISABILITY INSURANCE. All full time employees shall be enrolled in the long term disability plan as provided by the City, with the City paying 100% of the premium.
SECTION 5. LIFE INSURANCE. The City shall provide life insurance for an employee in the amount of $100,000, $3,000 for spouse, and $2,000 per dependent.
SECTION 6. EMPLOYEE ASSISTANCE PROGRAM. The City will enroll members of the Association in an Employee Assistance Program of its choosing.
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29 ARTICLE XI
RETIREMENT
SECTION 1. 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 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):
D. Tier One Safety Employees (hired before July 1, 2011):
E. Tier Two Safety Employees (hired 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):
F. PEPRA Safety Employees (hired on or after January 1, 2013):
SECTION 2. Benefits and Contributions for these six plans shall be as follows effective July 1, 2015:
A. All employee payments shall be reported as normal contributions and shall be credited to each member’s account.
B All computations shall be according to California Public Employees Retirement Law (PERL).
C. All of these retirement plans shall provide the CalPERS Level 4 Survivor Benefit.
Plan Benefit Computed On City Pays Employee Pays
Tier One Misc. 2.7% @ 55 Single Highest Year ER Contribution EE Contribution 8%
Tier Two Misc. 2% @ 60 Highest Average 36
consecutive months
ER Contribution EE Contribution
7%
PEPRA Misc. 2% @ 62 Highest Average 36
consecutive months
50% of Normal
Cost
50% of Normal
Cost
Tier One Safety 3% @ 50 Single Highest Year ER Contribution EE Contribution 9%
Tier Two Safety 2% @ 55 Highest Average 36
consecutive months
ER Contribution EE Contribution
7%
PEPRA Safety 2% @ 57 Highest Average 36
consecutive months
50% of Normal
Cost
50% of Normal
Cost
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30 ARTICLE XII
DEFERRED COMPENSATION
At no cost to the Affected Employees, the City shall deduct authorized wages from Affected Employee payroll checks and cause such amounts to be deposited in one (1) deferred compensation carrier selected by the City Manager. LPPA 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. The City shall not contribute any amount of the deferred compensation deposit. Requests for annual contributions to deferred compensation should be made during the open enrollment period for medical insurance. 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).
The employee retains complete control over the plan decision and how their contributions and balances are invested and maintained.
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31 ARTICLE XIII
SCHEDULE
SECTION 1. SHIFT ROTATION. Shift rotation shall be based upon the needs of the Department with consideration given to educational needs of those Officers attending or wishing to attend school.
The City will endeavor, to the greatest extent practicable, to schedule shifts on consecutive days. By doing so, 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 2. FLSA IMPLEMENTATION. In connection with the mandate of Garcia v. San Antonio Metropolitan Transit District (82-1913), the Association is aware that the City has elected in accord with 29 USC 207(k) and as to "Law Enforcement" personnel as that term is defined by the FLSA, to designate a "work period", as consisting of twenty-eight (28) consecutive days. Further, it is the joint understanding of the parties that those affected "Law Enforcement" employees occupying the classified positions of Police Officer and Police Sergeant are not exempt from operation of the FLSA. Further, if during the term of this agreement, the FLSA is either legislatively, administratively or judicially held inapplicable to any or all affected employees, then said provision shall be null and void.
SECTION 3. HOURS OF WORK. The work period for sworn employees in patrol is 14 consecutive 24 hour periods within which the work schedule shall consist of six 12.3 hour shifts per work period plus one 12.3 hour shift scheduled so that the middle of the shift corresponds to the start/end of the 14 day work period. Sworn employees covered by this MOU when not working in patrol shall have the same 14 day work period but are assigned a 4/10 per seven day week schedule.
The work week for Police Dispatchers shall be seven consecutive 24 hour periods within which the work schedule shall be three 12.3 hour shifts per work week plus one 12.3 hour shift scheduled so that the middle of the shift corresponds to the start/end of the seven day work period. The work week for non-sworn employees in positions other than Police Dispatcher shall be seven consecutive 24 hour periods with hours of work scheduled per the 4/10 schedule.
SECTION 4. CHANGE IN SCHEDULE. If, during the course of this Agreement, the Police Chief wishes to modify the scheduled hours of work or work periods for the Department or a Division as a whole, the City agrees to meet and confer regarding the proposed modification. By doing so, 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.
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32 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 LPPA 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, modifications or exercise of such reserve power, which right has been expressly waived by the Employees and the LPPA.
SECTION 3. OTHER PROVISIONS. If, at any point during the term of this Resolution, 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 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 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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33 ARTICLE XV
GRIEVANCE PROCEDURE
SECTION 1. DEFINITION. A "grievance" is a formal, written allegation by a grievant and/or the La Palma Police Association 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 Discipline Appeals Procedure set forth in La Palma Police Department Policy Manual section 340.8.
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 hear 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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34 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 himself/herself 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 an informally 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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35 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. 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.
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36 ARTICLE XVI
LAYOFF PROCEDURE
SECTION 1. LAYOFF AND RE-EMPLOYMENT. 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.
SECTION 2. ORDER OF LAYOFFS. A layoff means a reduction in the Department work force.
In the event of a reduction in the work force, layoffs will be made within each job classification on the basis of seniority in classification, so long as the senior employees possess qualifications, aptitude, occupational skills, and ability to perform the work equal to those of less senior employees of that classification. Employees shall be given at least 14 days’ notice of layoff. An employee laid off from his/her job classification shall be entitled to displace an employee in a lower classification provided the displacing employee has previously passed probation in the lower classification and has greater total City seniority, based on his/her date of hire, and possesses qualifications, aptitude, occupational skills, and the ability to perform the work equal to or surpassing the employee displaced. If layoffs are deemed necessary, the order of layoff within the affected layoff unit (department, division or class) shall be as follows:
A. Temporary employees; seasonal employees; provisional employees; B. Part-time employees;
C. Probationary employees; and
D. In the event of further reductions in force, employees will be laid off from the affected classification in accordance with seniority as specified above.
SECTION 3. VOLUNTARY REDUCTION IN LIEU OF LAYOFF. A promotional probationary or regular employee who is subject to layoff may request a reduction to a lower classification within the same occupational series in the layoff unit provided the employee possesses seniority, an acceptable performance and attendance record, and has the ability to perform the remaining work available without further training. The reduction shall be made if there is a vacant position in the layoff unit or an incumbent in the lower class in the layoff unit has less seniority in terms of service with the City than the employee requesting the reduction. In the latter case, the incumbent in the lower class with the least amount of seniority shall be subject to layoff if there is no temporary, seasonal, provisional, part time, or probationary employees.
SECTION 4. NOTIFICATION PERIOD. Employees to be laid off shall be given at least 14 days prior notice or two weeks’ pay in lieu of notice.
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37 SECTION 5. REINSTATEMENT. The names of regular and promotional probationary employees laid off or demoted in lieu of layoff shall be placed upon re-employment lists for one year for those classes requiring basically the same qualifications, duties and responsibilities of the class from which layoff or demotion in lieu of layoff was made. Notice will be sent to the employee’s last known address. Only non-probationary employees have a right to reinstatement.
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38 ARTICLE XVII
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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39 ARTICLE XVIII
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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40 ARTICLE XIX
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 POLICE ASSOCIATION, INC. CITY OF LA PALMA
________________________ ___________________________
Joshua Garcia, President Michael J. Egan, Interim City Manager Dated: ___________ Dated: ____________
Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A May 1, 2025
Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC May 1, 2025
ATTACHMENT “A”
41 Step A Step B Step C Step D Step E Step F
Civilian Investigator
Annual 53,500.72 56,175.76 58,984.54 61,933.77 65,030.46 68,281.98 Monthly 4,458.39 4,681.31 4,915.38 5,161.15 5,419.20 5,690.17 Biweekly 2,057.72 2,160.61 2,268.64 2,382.07 2,501.17 2,626.23 Hourly 25.7215 27.0076 28.3580 29.7759 31.2646 32.8279
Executive Assistant to the Chief of Police
Annual 59,569.69 62,548.18 65,675.59 68,959.36 72,407.33 76,027.70 Monthly 4,964.14 5,212.35 5,472.97 5,746.61 6,033.94 6,335.64 Biweekly 2,291.14 2,405.70 2,525.98 2,652.28 2,784.90 2,924.14 Hourly 28.6393 30.0712 31.5748 33.1535 34.8112 36.5518
Records Clerk
Annual 50,103.66 52,608.85 55,239.29 58,001.25 60,901.32 63,946.38 Monthly 4,175.31 4,384.07 4,603.27 4,833.44 5,075.11 5,328.87 Biweekly 1,927.06 2,023.42 2,124.59 2,230.82 2,342.36 2,459.48 Hourly 24.0883 25.2927 26.5574 27.8852 29.2795 30.7435
Police Dispatcher
Annual 65,319.07 68,585.03 72,014.28 75,614.99 79,395.74 83,365.53 Monthly 5,443.26 5,715.42 6,001.19 6,301.25 6,616.31 6,947.13 Biweekly 2,512.27 2,637.89 2,769.78 2,908.27 3,053.68 3,206.37 Hourly 31.4034 32.9736 34.6222 36.3534 38.1710 40.0796
Police Officer Recruit*
Annual 77,363.31 81,231.48 85,293.05 89,557.70 94,035.59 98,737.37 Monthly 6,446.94 6,769.29 7,107.75 7,463.14 7,836.30 8,228.11 Biweekly 2,975.51 3,124.29 3,280.50 3,444.53 3,616.75 3,797.59 Hourly 37.1939 39.0536 41.0063 43.0566 45.2094 47.4699
Step A Step B Step C Step D Step E Step F
Police Officer
Annual 85,959.30 90,257.27 94,770.13 99,508.64 104,484.07 109,708.28 Monthly 7,163.28 7,521.44 7,897.51 8,292.39 8,707.01 9,142.36 Biweekly 3,306.13 3,471.43 3,645.01 3,827.26 4,018.62 4,219.55 Hourly 41.3266 43.3929 45.5626 47.8407 50.2327 52.7444
Police Officer (PEPRA)**
Annual 87,033.80 91,385.49 95,954.76 100,752.50 105,790.12 111,079.63 Monthly 7,252.82 7,615.46 7,996.23 8,396.04 8,815.84 9,256.64 Biweekly 3,347.45 3,514.83 3,690.57 3,875.10 4,068.85 4,272.29 Hourly 41.8432 43.9353 46.1321 48.4387 50.8606 53.4037
Police Sergeant
Annual 109,244.51 114,706.74 120,442.07 126,464.18 132,787.39 139,426.75 Monthly 9,103.71 9,558.89 10,036.84 10,538.68 11,065.62 11,618.90 Biweekly 4,201.71 4,411.80 4,632.39 4,864.01 5,107.21 5,362.57 Hourly 52.5214 55.1475 57.9048 60.8001 63.8401 67.0321
Police Sergeant (PEPRA)**
Annual 110,610.07 116,140.57 121,947.60 128,044.98 134,447.23 141,169.59 Monthly 9,217.51 9,678.38 10,162.30 10,670.41 11,203.94 11,764.13 Biweekly 4,254.23 4,466.95 4,690.29 4,924.81 5,171.05 5,429.60 Hourly 53.1779 55.8368 58.6287 61.5601 64.6381 67.8700
Sworn Classifications
*Police Officer Recruit base salary set at 10% below Police Officer **PEPRA Police Officer and PEPRA Sergeant receive an additional 1.25% above base salary.
La Palma Police Association
Classification and Salary Tables
July 1, 2025 to June 30, 2026
Pursuant to Article III, Section 7A of the current MOU
Non Sworn Classifications
Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
ATTACHMENT “B”
42 Step A Step B Step C Step D Step E Step F
Civilian Investigator
Annual 55,640.75 58,422.79 61,343.93 64,411.12 67,631.68 71,013.26 Monthly 4,636.73 4,868.57 5,111.99 5,367.59 5,635.97 5,917.77 Biweekly 2,140.03 2,247.03 2,359.38 2,477.35 2,601.22 2,731.28 Hourly 26.7504 28.0879 29.4923 30.9669 32.5152 34.1410
Executive Assistant to the Chief of Police
Annual 61,952.48 65,050.10 68,302.61 71,717.74 75,303.63 79,068.81 Monthly 5,162.71 5,420.84 5,691.88 5,976.48 6,275.30 6,589.07 Biweekly 2,382.79 2,501.93 2,627.02 2,758.37 2,896.29 3,041.11 Hourly 29.7848 31.2741 32.8378 34.4797 36.2037 38.0138
Records Clerk
Annual 52,107.81 54,713.20 57,448.86 60,321.30 63,337.37 66,504.24 Monthly 4,342.32 4,559.43 4,787.41 5,026.78 5,278.11 5,542.02 Biweekly 2,004.15 2,104.35 2,209.57 2,320.05 2,436.05 2,557.86 Hourly 25.0518 26.3044 27.6196 29.0006 30.4507 31.9732
Police Dispatcher
Annual 67,931.83 71,328.43 74,894.85 78,639.59 82,571.57 86,700.15 Monthly 5,660.99 5,944.04 6,241.24 6,553.30 6,880.96 7,225.01 Biweekly 2,612.76 2,743.40 2,880.57 3,024.60 3,175.83 3,334.62 Hourly 32.6595 34.2925 36.0071 37.8075 39.6979 41.6828
Police Officer Recruit*
Annual 80,457.84 84,480.74 88,704.77 93,140.01 97,797.01 102,686.86 Monthly 6,704.82 7,040.06 7,392.06 7,761.67 8,149.75 8,557.24 Biweekly 3,094.53 3,249.26 3,411.72 3,582.31 3,761.42 3,949.49 Hourly 38.6817 40.6157 42.6465 44.7789 47.0178 49.3687
Step A Step B Step C Step D Step E Step F
Police Officer
Annual 89,397.68 93,867.56 98,560.94 103,488.99 108,663.43 114,096.61 Monthly 7,449.81 7,822.30 8,213.41 8,624.08 9,055.29 9,508.05 Biweekly 3,438.37 3,610.29 3,790.81 3,980.35 4,179.36 4,388.33 Hourly 42.9797 45.1286 47.3851 49.7543 52.2420 54.8541
Police Officer (PEPRA)**
Annual 90,515.15 95,040.91 99,792.95 104,782.60 110,021.73 115,522.81 Monthly 7,542.93 7,920.08 8,316.08 8,731.88 9,168.48 9,626.90 Biweekly 3,481.35 3,655.42 3,838.19 4,030.10 4,231.60 4,443.19 Hourly 43.5169 45.6927 47.9774 50.3762 52.8951 55.5398
Police Sergeant
Annual 113,614.29 119,295.01 125,259.76 131,522.74 138,098.88 145,003.83 Monthly 9,467.86 9,941.25 10,438.31 10,960.23 11,508.24 12,083.65 Biweekly 4,369.78 4,588.27 4,817.68 5,058.57 5,311.50 5,577.07 Hourly 54.6223 57.3534 60.2210 63.2321 66.3937 69.7134
Police Sergeant (PEPRA)**
Annual 115,034.47 120,786.19 126,825.50 133,166.78 139,825.12 146,816.37 Monthly 9,586.21 10,065.52 10,568.79 11,097.23 11,652.09 12,234.70 Biweekly 4,424.40 4,645.62 4,877.90 5,121.80 5,377.89 5,646.78 Hourly 55.3050 58.0703 60.9738 64.0225 67.2236 70.5848
Sworn Classifications
*Police Officer Recruit base salary set at 10% below Police Officer **PEPRA Police Officer and PEPRA Sergeant receive an additional 1.25% above base salary.
La Palma Police Association
Classification and Salary Tables
July 1, 2026 to June 30, 2027
Pursuant to Article III, Section 7B of the current MOU
Non Sworn Classifications
Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
ATTACHMENT “C”
43 Step A Step B Step C Step D Step E Step F
Civilian Investigator
Annual 57,866.38 60,759.70 63,797.68 66,987.57 70,336.95 73,853.79 Monthly 4,822.20 5,063.31 5,316.47 5,582.30 5,861.41 6,154.48 Biweekly 2,225.63 2,336.91 2,453.76 2,576.44 2,705.27 2,840.53 Hourly 27.8204 29.2114 30.6720 32.2056 33.8158 35.5066
Executive Assistant to the Chief of Police
Annual 64,430.58 67,652.11 71,034.71 74,586.45 78,315.77 82,231.56 Monthly 5,369.21 5,637.68 5,919.56 6,215.54 6,526.31 6,852.63 Biweekly 2,478.10 2,602.00 2,732.10 2,868.71 3,012.15 3,162.75 Hourly 30.9762 32.5251 34.1513 35.8589 37.6518 39.5344
Records Clerk
Annual 54,192.12 56,901.73 59,746.82 62,734.16 65,870.86 69,164.41 Monthly 4,516.01 4,741.81 4,978.90 5,227.85 5,489.24 5,763.70 Biweekly 2,084.31 2,188.53 2,297.95 2,412.85 2,533.49 2,660.17 Hourly 26.0539 27.3566 28.7244 30.1607 31.6687 33.2521
Police Dispatcher
Annual 70,649.11 74,181.56 77,890.64 81,785.17 85,874.43 90,168.15 Monthly 5,887.43 6,181.80 6,490.89 6,815.43 7,156.20 7,514.01 Biweekly 2,717.27 2,853.14 2,995.79 3,145.58 3,302.86 3,468.01 Hourly 33.9659 35.6642 37.4474 39.3198 41.2858 43.3501
Police Officer Recruit*
Annual 83,676.16 87,859.97 92,252.96 96,865.61 101,708.89 106,794.34 Monthly 6,973.01 7,321.66 7,687.75 8,072.13 8,475.74 8,899.53 Biweekly 3,218.31 3,379.23 3,548.19 3,725.60 3,911.88 4,107.47 Hourly 40.2289 42.2404 44.3524 46.5700 48.8985 51.3434
Step A Step B Step C Step D Step E Step F
Police Officer
Annual 92,973.58 97,622.26 102,503.38 107,628.55 113,009.97 118,660.47 Monthly 7,747.80 8,135.19 8,541.95 8,969.05 9,417.50 9,888.37 Biweekly 3,575.91 3,754.70 3,942.44 4,139.56 4,346.54 4,563.86 Hourly 44.6988 46.9338 49.2805 51.7445 54.3317 57.0483
Police Officer (PEPRA)**
Annual 94,135.75 98,842.54 103,784.67 108,973.90 114,422.60 120,143.73 Monthly 7,844.65 8,236.88 8,648.72 9,081.16 9,535.22 10,011.98 Biweekly 3,620.61 3,801.64 3,991.72 4,191.30 4,400.87 4,620.91 Hourly 45.2576 47.5205 49.8965 52.3913 55.0109 57.7614
Police Sergeant
Annual 118,158.86 124,066.81 130,270.15 136,783.65 143,622.84 150,803.98 Monthly 9,846.57 10,338.90 10,855.85 11,398.64 11,968.57 12,567.00 Biweekly 4,544.57 4,771.80 5,010.39 5,260.91 5,523.96 5,800.15 Hourly 56.8071 59.6475 62.6299 65.7614 69.0494 72.5019
Police Sergeant (PEPRA)**
Annual 119,635.85 125,617.64 131,898.52 138,493.45 145,418.12 152,689.03 Monthly 9,969.65 10,468.14 10,991.54 11,541.12 12,118.18 12,724.09 Biweekly 4,601.38 4,831.45 5,073.02 5,326.67 5,593.00 5,872.65 Hourly 57.5172 60.3931 63.4128 66.5834 69.9126 73.4082
Sworn Classifications
*Police Officer Recruit base salary set at 10% below Police Officer **PEPRA Police Officer and PEPRA Sergeant receive an additional 1.25% above base salary.
La Palma Police Association
Classification and Salary Tables
July 1, 2027 to June 30, 2028
Pursuant to Article III, Section 7C of the current MOU
Non Sworn Classifications
Docusign Envelope ID: D93A06F4-7CDB-4F98-9DCB-F0B3B03CB74A Docusign Envelope ID: A3148686-0998-4276-A738-69288DD61FAC
Resolution No. 2025-
RESOLUTION NO. 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA PALMA ADOPTING A SALARY SCHEDULE AND A
COMPREHENSIVE LISTING OF PERSONNEL PRACTICES
AND BENEFITS FOR MANAGEMENT EMPLOYEES AND
RESCINDING RESOLUTION NO. 2025-19
WHEREAS, on April 1, 2025, the City Council previously adopted Resolution 2025- 19, which established salaries and benefits for management employees; and WHEREAS, the City has now completed labor negotiations with the La Palma General Employees Association (LPGEA), La Palma Professional Employees Association (LPPEA), and La Palma Police Association (LPPA); and WHEREAS, the City would now like to make changes to the Salary Schedule and Comprehensive Listing of Personnel Practices and Benefits for Management Employees to align with the terms negotiated with the employee associations; and WHEREAS, a comprehensive list of management salary rates, personnel practices, and benefits has been compiled and attached to this Resolution; and, WHEREAS, this list has been updated and supersedes all previously adopted salaries, benefits, and procedures.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of La Palma hereby adopts this Resolution, including Exhibit “1”, and rescinds Resolution No. 2025-19.
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 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
Resolution No. 2025-
ARTICLE I
TERM OF RESOLUTION
This resolution is a composite of all agreements and all previously adopted resolutions, which affect the salaries and benefits of Management Employees.
Resolution No. 2025-
ARTICLE II
COVERED PERSONNEL
Employees identified as Management Employees are as follows:
City Manager
Assistant City Manager
Assistant to the City Manager
City Clerk/Executive Assistant
Community Development & Public Works Director
Community Development Manager
Deputy City Manager
Police Captain (2)
Police Chief
Public Works Manager
Public Works & Community Services Director
The benefits described in this document are for all identified management employees, unless otherwise specified or covered by other resolutions. The City Manager’s salary and benefits shall be set via a separate Employment Agreement that may or may not include or exclude any of the benefits in this Resolution.
Resolution No. 2025-
ARTICLE III
COMPENSATION
SECTION 1. 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 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 standard 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 employee’s initial six months of satisfactory service in the classification, if the employee is hired at Step A, as determined by the City Manager or Department Head, as applicable.
Advancement to the next step at the completion of employee’s initial twelve months of satisfactory service in the classification, if the employee is hired at Step A, as determined by the City Manager or Department Head, as applicable.
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 City Manager or Department Head, as applicable.
4. Satisfactory service shall be defined as having received an Overall Performance Rating of Satisfactory or above in the employee’s annual performance
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review, as determined by the City Manager or Department Head, as applicable.
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 his or her 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. 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 2. OVERTIME Management employees do not receive overtime.
SECTION 3. 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 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 up to 80 hours, 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. Fridays). Employees will be allowed to keep the stipend provided by the County.
C. Car Vehicle Usage.
1. The Police Chief may use their assigned City vehicle within a 500- mile radius of the City of La Palma.
2. The Police Captains may use their assigned vehicles within a 150 mile radius of the City of La Palma.
City vehicles are not to be used for out-of-area (e.g. weekend trips or vacations)
Resolution No. 2025-
personal trips regardless if the trip is within the allowed radius.
D. Uniform Allowance. The Police Chief and Police Captains shall receive a uniform allowance of $34.75 per two week pay period for the maintenance of uniforms and equipment.
E. Equipment Reimbursement. The Police Chief and Police Captains shall receive equipment reimbursements equal to actual cost of repair, or when necessary, replacement of authorized law enforcement uniforms or equipment that are owned by the employee and that are damaged in the course and scope of their employment. Items which have worn out due to normal wear and tear shall not be reimbursable. Authorized items may change from time to time and shall be determined by the Police Chief, with approval of the City Manager.
Replacement shall be at the discretion of the Police Chief and on approval of the City Manager.
F. Assignment Pay. The City Manager is authorized to increase base salary up to 5% for employees who take on additional assignments.
G. 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.
SECTION 4. PAY PERIODS All employees shall be paid bi-weekly.
SECTION 5. SALARY SCHEDULE
A. Attachment A shall become effective the pay period that includes July 1, 2025, and consists of a base salary increase of 5.0% 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 4.0% 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 4.0% for all represented classifications.
Resolution No. 2025-
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. Employees in the classification of Police Captain shall be on probation for a period of 18 months. Probationary employees may be terminated from employment with or without cause by the City Manager, in his or her sole discretion, and in accordance with State and Federal laws. All other management employees are “at will” employees who serve at the discretion of the City Manager.
SECTION 5. OTHER EMPLOYMENT. No management employee shall engage in any other employment, which is inconsistent or incompatible with City employment. Other employment must be approved in advance by the City Manager.
Resolution No. 2025-
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 (E). 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(E). 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. The "floating holidays" shall be used to facilitate a City Hall, City Yard, Police Department Administrative Staff, and Recreation and Community Services Holiday closure between the Christmas Holiday and the New Year’s Holiday, up to a maximum of 36 hours. Any remaining "floating holiday" time shall be taken between January 1 and June 30 of the fiscal year at a time selected by the employee with the concurrence of the City Manager. If the holiday closure exceeds 40 hours, employees will be required to utilize Vacation Pay to supplement the difference. For new employees, floating holiday hours shall be pro-rated over the fiscal year based on the employee’s employment date and the employee will be required to utilize Vacation Pay to supplement the difference of hours taken for the floating holiday in excess of the employee’s floating holiday balance.
B. 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." C. No absence under the holiday provisions in this article shall be charged to or paid from sick leave accumulated benefits.
D. Holiday Pay. Management employees shall be paid on the basis of the number of hours normally scheduled on the day on which the holiday falls, up to a maximum of 10 hours. If the employee would have worked in excess of 10 hours, the employee will be required to utilize Vacation Pay to supplement the difference.
E. 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.
Resolution No. 2025-
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 Managers (Hired prior to July 1, 2011). Vacation credit shall be computed on the basis of 4.62 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 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 Managers (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.
Resolution No. 2025-
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. Different Accruals. At the discretion of the City Manager, a management employee may accrue vacation at a different rate than illustrated above, regardless of the number of years of continuous, full time employment. Such discretion will apply only to new employees and will be based on the number of years of service in other public agencies.
1. Those managers hired with a higher accrual rate than regularly given a new employee, shall begin accrual in the tier that is consistent with the schedule outlined above.
D. 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.
E. 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 or her sole discretion.
F. City Manager Approval. An employee shall not be entitled to take vacation unless the date(s) of the vacation are approved in advance 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 City Manager 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 City Manager determines that an emergency or other unusual occurrence exists for which sick leave cannot be used and the employee has no other appropriate leave available, the City Manager has the discretion to allow vacation hours to be used when an employee calls in an absence on the actual day of the absence.
G. 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
Resolution No. 2025-
the employee, each time a new monthly vacation credit is added to the accumulation of vacation credits.
H. Vacation Cash-out Option. Upon the prior approval of the City Manager, each management employee shall have the option of “cashing out” up to one hundred (100) hours of vacation within a fiscal year. This option may be exercised up to two times in each fiscal year, up to a cumulative maximum of one hundred (100) hours. However, the employee must retain a bank of at least 20 hours of vacation leave following the cashout. Cashout requests shall be processed and included on the next available regular paycheck following an approved request to cashout the leave.
I. Termination of Employment. Except as otherwise herein provided, a management 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.
Resolution No. 2025-
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 management employee. 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 a management 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 residing in the same household 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 733, 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 management employee shall be afforded the opportunity to use up to eighteen hours of sick leave benefits per fiscal year (on a noncumulative 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 management 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 having in excess
Resolution No. 2025-
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. Non-public safety management employees: An employee, absent as a result of a jobincurred 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 nonscheduled 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.
B. Police management employees: Job-incurred illness or injury compensation (4850 pay) is paid, based on verification, as required by the California Labor Code. 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.)
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 City Manager.
B. If a management 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
Resolution No. 2025-
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.
C. Where a management employee's absence due to personal illness or injury extends for more than five consecutive working days, 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 management employee's return to work following an absence for more than five working days due to illness or injury, an employee shall submit to the City Manager 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 additional unearned sick leave credit advanced except by approval 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 management 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.
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
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time of retirement.
C. Except as provided below, if a full-time employee's employment is separated for any reason, other than provided in Section 8 (B), after 60 months of continuous employment, compensation for fifty percent (50%), computed to the nearest whole dollar, of the unused sick leave accumulated days will be paid, up to a maximum of 320 unused sick leave accumulated hours. 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, 50 percent (50%) 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 350 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.
Resolution No. 2025-
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
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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 management 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. A management 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 fulltime 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 the City Manager, in his or her sole discretion. Leaves of absence without pay, each not to exceed one year, may be granted by the City Manager in his or her sole discretion. Requests for all leaves of absence without pay shall first be made to the Department Head.
Resolution No. 2025-
SECTION 5. ABSENCE WITHOUT LEAVE. Any absence from work without leave or without a post-absence acceptable excuse, or pursuant to a right established in this Resolution, 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 their sole expense at the actual rate charged.
SECTION 7. ADMINISTRATIVE LEAVE. Management employees shall be entitled to administrative leave with no loss in salary for a total of up to 80 hours per fiscal year subject to the approval of the City Manager.
SECTION 8. 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.
Resolution No. 2025-
ARTICLE IX
TRAINING
SECTION 1. REQUIRED TRAINING. A management employee who is required by the City Manager 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 management employee desiring reimbursement for their expenses shall obtain the City Manager’s approval as to course content and its relationship to the employee's employment with the City. In the event the City Manager approves such request, which approval shall be at the City Manager’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 the City Manager a copy of the official transcript and a receipt for the tuition fee. On approval by the City Manager, the employee shall then be reimbursed for the cost of tuition, plus up to $200 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 City Manager at 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.
Resolution No. 2025-
ARTICLE X
GROUP INSURANCE
SECTION 1. MEDICAL PREMIUMS.
A. All management 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.
1. Miscellaneous and Tier 2 Safety (Police Chief and Captains) hired on or after July 1, 2011) Management Employees. For Miscellaneous and Tier 2 Safety Management 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 caps required by Government Code Section 22892.
2. Tier One Safety Employees. For Tier One (hired before July 1, 2011) Police Management employees covered by this Agreement, the City will contribute $416.49 toward the cost of the premiums for medical insurance under the PEMHCA for each employee, and his or her eligible dependents, and for each annuitant in PERS and his or her eligible dependents.
C. Fringe Benefit Cafeteria Plans.
1. Miscellaneous and Tier 2 Safety Management Employees. The City shall make a monthly fringe benefit contribution to each eligible Miscellaneous and Tier 2 Safety Management 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 PERS health plans shall be in the following manner.
Resolution No. 2025-
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 $507.49* $160* $667.49
Employee + one $996.49* $160* $1,156.49
Employee + two or more $1,255.49* $160* $1,415.49
Effective January 1, 2027
Employee Only $505.49* $162* $667.49
Employee + one $994.49* $162* $1,156.49
Employee + two or more $1,253.49* $162* $1,415.49
*Estimated
2. Tier One Safety Employees: For Tier One (hired before July 1, 2011) Safety Management employees covered by this Agreement, the City will make a monthly fringe benefit contribution to each eligible member of the unit to be used toward the health benefit cafeteria plan. These funds shall only be used for eligible plans included with the cafeteria plan. The fringe benefit contribution to those full-time employees who enroll in one of the PERS health plans shall be in the following manner.
Effective July 1, 2025 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
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. 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. Managers hired before July 1, 2018, who selects 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 each month. Managers hired on or after July 1, 2018, who select the
Resolution No. 2025-
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.
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. Management 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).
Management 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.
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 (G) above, the City shall not pay directly or indirectly pay 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 PERS plan.
SECTION 2. DENTAL PLAN.
A. A management employee may 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 management 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 management 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
Resolution No. 2025-
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 to age
25. E. The City will continue to provide employees the option of choosing between HMO and PPO plans.
SECTION 3. VISION PLAN. A management employee and his or her dependents may receive up to $400 per fiscal year for vision care expenses related 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, 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.
SECTION 4. DISABILITY INSURANCE. All management employees shall enroll in any longterm disability plan as provided by the City, with the City paying 100% of the premium.
SECTION 5. LIFE INSURANCE. The City shall provide life insurance for management employees in the amount of $100,000, $3,000 for spouse, and $2,000 per dependent.
SECTION 6. EMPLOYEE ASSISTANCE PROGRAM. The City shall pay for membership in an employee assistance program selected by the City for management employees and their dependents.
SECTION 7. ANNUAL HEALTH/WELLNESS PROGRAM REIMBURSEMENT. All management employees shall be eligible to receive reimbursement, up to $500 per fiscal year, for health and/or wellness services or programs, as approved by the City Manager.
SECTION 8. FLEXIBLE BENEFITS PLAN. The City shall offer an IRS Flexible Benefits Plan to all management employees for purposes of pre-tax payroll deductions for childcare and/or eligible medical expenses. The Plan may be changed or eliminated by the City in its sole discretion.
Resolution No. 2025-
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 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)
D. Tier One Safety Employees (Hired before July 1, 2011) E. Tier Two Safety Employees (Hired 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)
F. PEPRA Safety Employees (hired on or after January 1, 2013) SECTION 2. Benefits and Contributions for these six plans shall be as follows effective July 1, 2015:
A. All employee payments shall be reported as normal contributions and shall be credited to each member’s account.
B All computations shall be according to California Public Employees Retirement Law (PERL).
C. All of these retirement plans shall provide the CalPERS Level 4 Survivor Benefit.
Plan Benefit Computed On City Pays Employee Pays
Tier One Misc. 2.7% @ 55 Single Highest Year ER Contribution EE Contribution 8%
Tier Two Misc. 2% @ 60 Highest Average 36
consecutive months
ER Contribution EE Contribution
7%
PEPRA Misc. 2% @ 62 Highest Average 36
consecutive months
50% of Normal
Cost
50% of Normal
Cost
Tier One Safety 3% @ 50 Single Highest Year ER Contribution EE Contribution 9%
Tier Two Safety 2% @ 55 Highest Average 36
consecutive months
ER Contribution EE Contribution
7%
PEPRA Safety 2% @ 57 Highest Average 36
consecutive months
50% of Normal
Cost
50% of Normal
Cost
Resolution No. 2025-
D. All employees in this group shall make a 1.45% Medicare employee contribution regardless of their hire date. The city matches this contribution.
Resolution No. 2025-
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 for La Palma general employees under existing resolutions. 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). For managers hired before July 1, 2018, the City will contribute $115 per pay period to a deferred compensation plan on the employee’s behalf.
Resolution No. 2025-
ARTICLE XIII
GRIEVANCE PROCEDURE
Management employees with the title of Police Captain are permitted to appeal disciplinary actions in accordance with the Police Officer Bill of Rights (POBR) and applicable La Palma Police Department policies.
Resolution No. 2025-
ARTICLE XIV
OTHER PROVISIONS
If, at any point during the term of this Resolution, 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 may modify the Resolution 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 not be 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.
Attachment “A”
Resolution No. 2025-
Step A Step B Step C Step D Step E Step F Step G
Annual 268,222.36
Monthly 22,351.86
Biweekly 10,316.24
Hourly 128.9531
Annual 159,839.34 167,831.30 176,222.87 185,034.01 194,285.71 204,000.00 214,200.00 Monthly 13,319.94 13,985.94 14,685.24 15,419.50 16,190.48 17,000.00 17,850.00 Biweekly 6,147.67 6,455.05 6,777.80 7,116.69 7,472.53 7,846.15 8,238.46 Hourly 76.8458 80.6881 84.7225 88.9587 93.4066 98.0769 102.9808 Annual 101,016.12 106,066.92 111,370.27 116,938.78 122,785.72 128,925.01 135,371.26 Monthly 8,418.01 8,838.91 9,280.86 9,744.90 10,232.14 10,743.75 11,280.94 Biweekly 3,885.24 4,079.50 4,283.47 4,497.65 4,722.53 4,958.65 5,206.59 Hourly 48.5654 50.9937 53.5434 56.2206 59.0316 61.9832 65.0823 Annual 110,604.92 116,135.16 121,941.92 128,039.02 134,440.97 141,163.02 148,221.17 Monthly 9,217.08 9,677.93 10,161.83 10,669.92 11,203.41 11,763.58 12,351.76 Biweekly 4,254.04 4,466.74 4,690.07 4,924.58 5,170.81 5,429.35 5,700.81 Hourly 53.1754 55.8342 58.6259 61.5572 64.6351 67.8668 71.2602 Annual 139,608.14 146,588.55 153,917.97 161,613.87 169,694.57 178,179.30 187,088.26 Monthly 11,634.01 12,215.71 12,826.50 13,467.82 14,141.21 14,848.27 15,590.69 Biweekly 5,369.54 5,638.02 5,919.92 6,215.92 6,526.71 6,853.05 7,195.70 Hourly 67.1193 70.4753 73.9990 77.6990 81.5839 85.6631 89.9463 Annual 108,177.00 113,585.85 119,265.14 125,228.40 131,489.82 138,064.31 144,967.52 Monthly 9,014.75 9,465.49 9,938.76 10,435.70 10,957.48 11,505.36 12,080.63 Biweekly 4,160.65 4,368.69 4,587.12 4,816.48 5,057.30 5,310.17 5,575.67 Hourly 52.0082 54.6086 57.3390 60.2060 63.2163 66.3771 69.6959 Annual 117,528.92 123,405.37 129,575.64 136,054.42 142,857.14 150,000.00 157,500.00 Monthly 9,794.08 10,283.78 10,797.97 11,337.87 11,904.76 12,500.00 13,125.00 Biweekly 4,520.34 4,746.36 4,983.68 5,232.86 5,494.51 5,769.23 6,057.69 Hourly 56.5043 59.3295 62.2960 65.4108 68.6813 72.1154 75.7212 Annual 139,608.14 146,588.55 153,917.97 161,613.87 169,694.57 178,179.30 187,088.26 Monthly 11,634.01 12,215.71 12,826.50 13,467.82 14,141.21 14,848.27 15,590.69 Biweekly 5,369.54 5,638.02 5,919.92 6,215.92 6,526.71 6,853.05 7,195.70 Hourly 67.1193 70.4753 73.9990 77.6990 81.5839 85.6631 89.9463 Assistant to the City Manager
Police Captain
City Clerk/Executive Assistant
Community Development & Public Works Director
Community Development Manager
Deputy City Manager
La Palma Management Employees
Classification and Salary Table
July 1, 2025 through June 30, 2026
City Manager
Assistant City Manager
Attachment “A”
Resolution No. 2025-
Step A Step B Step C Step D Step E Step F Step G
Annual 163,774.82 171,963.56 180,561.74 189,589.83 199,069.32 209,022.79 219,473.93 Monthly 13,647.90 14,330.30 15,046.81 15,799.15 16,589.11 17,418.57 18,289.49 Biweekly 6,299.03 6,613.98 6,944.68 7,291.92 7,656.51 8,039.34 8,441.30 Hourly 78.7379 82.6748 86.8085 91.1490 95.7064 100.4917 105.5163 Annual 129,281.82 135,745.91 142,533.20 149,659.86 157,142.86 165,000.00 173,250.00 Monthly 10,773.48 11,312.16 11,877.77 12,471.66 13,095.24 13,750.00 14,437.50 Biweekly 4,972.38 5,221.00 5,482.05 5,756.15 6,043.96 6,346.15 6,663.46 Hourly 62.1547 65.2625 68.5256 71.9519 75.5495 79.3269 83.2933 Annual 150,864.24 158,407.45 166,327.82 174,644.21 183,376.42 192,545.24 202,172.50 Monthly 12,572.02 13,200.62 13,860.65 14,553.68 15,281.37 16,045.44 16,847.71 Biweekly 5,802.47 6,092.59 6,397.22 6,717.09 7,052.94 7,405.59 7,775.87 Hourly 72.5309 76.1574 79.9653 83.9636 88.1617 92.5698 97.1983 Public Works Manager
Public Works & Community Services Director
Police Chief
Attachment “B”
Resolution No. 2025-
Step A Step B Step C Step D Step E Step F Step G
Annual 278,951.26
Monthly 23,245.94
Biweekly 10,728.89
Hourly 134.1112
Annual 166,232.91 174,544.56 183,271.78 192,435.37 202,057.14 212,160.00 222,768.00 Monthly 13,852.74 14,545.38 15,272.65 16,036.28 16,838.10 17,680.00 18,564.00 Biweekly 6,393.57 6,713.25 7,048.91 7,401.36 7,771.43 8,160.00 8,568.00 Hourly 79.9197 83.9157 88.1114 92.5170 97.1429 102.0000 107.1000 Annual 105,056.76 110,309.60 115,825.08 121,616.33 127,697.15 134,082.01 140,786.11 Monthly 8,754.73 9,192.47 9,652.09 10,134.69 10,641.43 11,173.50 11,732.18 Biweekly 4,040.64 4,242.68 4,454.81 4,677.55 4,911.43 5,157.00 5,414.85 Hourly 50.5081 53.0335 55.6851 58.4694 61.3929 64.4625 67.6856 Annual 115,029.11 120,780.57 126,819.60 133,160.58 139,818.61 146,809.54 154,150.01 Monthly 9,585.76 10,065.05 10,568.30 11,096.71 11,651.55 12,234.13 12,845.83 Biweekly 4,424.20 4,645.41 4,877.68 5,121.56 5,377.64 5,646.52 5,928.85 Hourly 55.3025 58.0676 60.9710 64.0195 67.2205 70.5815 74.1106 Annual 145,192.47 152,452.09 160,074.69 168,078.43 176,482.35 185,306.47 194,571.79 Monthly 12,099.37 12,704.34 13,339.56 14,006.54 14,706.86 15,442.21 16,214.32 Biweekly 5,584.33 5,863.54 6,156.72 6,464.55 6,787.78 7,127.17 7,483.53 Hourly 69.8041 73.2943 76.9590 80.8069 84.8473 89.0896 93.5441 Annual 112,504.08 118,129.28 124,035.74 130,237.53 136,749.41 143,586.88 150,766.22 Monthly 9,375.34 9,844.11 10,336.31 10,853.13 11,395.78 11,965.57 12,563.85 Biweekly 4,327.08 4,543.43 4,770.61 5,009.14 5,259.59 5,522.57 5,798.70 Hourly 54.0885 56.7929 59.6326 62.6142 65.7449 69.0322 72.4838 Annual 122,230.08 128,341.59 134,758.67 141,496.60 148,571.43 156,000.00 163,800.00 Monthly 10,185.84 10,695.13 11,229.89 11,791.38 12,380.95 13,000.00 13,650.00 Biweekly 4,701.16 4,936.21 5,183.03 5,442.18 5,714.29 6,000.00 6,300.00 Hourly 58.7645 61.7027 64.7878 68.0272 71.4286 75.0000 78.7500 Annual 145,192.47 152,452.09 160,074.69 168,078.43 176,482.35 185,306.47 194,571.79 Monthly 12,099.37 12,704.34 13,339.56 14,006.54 14,706.86 15,442.21 16,214.32 Biweekly 5,584.33 5,863.54 6,156.72 6,464.55 6,787.78 7,127.17 7,483.53 Hourly 69.8041 73.2943 76.9590 80.8069 84.8473 89.0896 93.5441 City Clerk/Executive Assistant
Community Development & Public Works Director
Community Development Manager
Deputy City Manager
Police Captain
Assistant to the City Manager
La Palma Management Employees
Classification and Salary Table
July 1, 2026 through June 30, 2027
City Manager
Assistant City Manager
Attachment “B”
Resolution No. 2025-
Step A Step B Step C Step D Step E Step F Step G
Annual 170,325.82 178,842.11 187,784.21 197,173.42 207,032.09 217,383.70 228,252.88 Monthly 14,193.82 14,903.51 15,648.68 16,431.12 17,252.67 18,115.31 19,021.07 Biweekly 6,550.99 6,878.54 7,222.47 7,583.59 7,962.77 8,360.91 8,778.96 Hourly 81.8874 85.9818 90.2809 94.7949 99.5347 104.5114 109.7370 Annual 134,453.09 141,175.74 148,234.53 155,646.26 163,428.57 171,600.00 180,180.00 Monthly 11,204.42 11,764.65 12,352.88 12,970.52 13,619.05 14,300.00 15,015.00 Biweekly 5,171.27 5,429.84 5,701.33 5,986.39 6,285.71 6,600.00 6,930.00 Hourly 64.6409 67.8730 71.2666 74.8299 78.5714 82.5000 86.6250 Annual 156,898.80 164,743.74 172,980.93 181,629.98 190,711.48 200,247.05 210,259.40 Monthly 13,074.90 13,728.65 14,415.08 15,135.83 15,892.62 16,687.25 17,521.62 Biweekly 6,034.57 6,336.30 6,653.11 6,985.77 7,335.06 7,701.81 8,086.90 Hourly 75.4321 79.2037 83.1639 87.3221 91.6882 96.2726 101.0863 Public Works Manager
Public Works & Community Services Director
Police Chief
Attachment “C”
Resolution No. 2025-
Step A Step B Step C Step D Step E Step F Step G
Annual 290,109.31
Monthly 24,175.78
Biweekly 11,158.05
Hourly 139.4756
Annual 172,882.23 181,526.34 190,602.66 200,132.79 210,139.43 220,646.40 231,678.72 Monthly 14,406.85 15,127.19 15,883.55 16,677.73 17,511.62 18,387.20 19,306.56 Biweekly 6,649.32 6,981.78 7,330.87 7,697.41 8,082.29 8,486.40 8,910.72 Hourly 83.1165 87.2723 91.6359 96.2177 101.0286 106.0800 111.3840 Annual 109,259.03 114,721.98 120,458.08 126,480.98 132,805.03 139,445.29 146,417.55 Monthly 9,104.92 9,560.17 10,038.17 10,540.08 11,067.09 11,620.44 12,201.46 Biweekly 4,202.27 4,412.38 4,633.00 4,864.65 5,107.89 5,363.28 5,631.44 Hourly 52.5284 55.1548 57.9125 60.8082 63.8486 67.0410 70.3931 Annual 119,630.28 125,611.79 131,892.38 138,487.00 145,411.35 152,681.92 160,316.01 Monthly 9,969.19 10,467.65 10,991.03 11,540.58 12,117.61 12,723.49 13,359.67 Biweekly 4,601.16 4,831.22 5,072.78 5,326.42 5,592.74 5,872.38 6,166.00 Hourly 57.5146 60.3903 63.4098 66.5803 69.9093 73.4048 77.0750 Annual 151,000.16 158,550.17 166,477.68 174,801.57 183,541.64 192,718.73 202,354.66 Monthly 12,583.35 13,212.51 13,873.14 14,566.80 15,295.14 16,059.89 16,862.89 Biweekly 5,807.70 6,098.08 6,402.99 6,723.14 7,059.29 7,412.26 7,782.87 Hourly 72.5962 76.2260 80.0373 84.0392 88.2412 92.6532 97.2859 Annual 117,004.24 122,854.45 128,997.17 135,447.03 142,219.38 149,330.35 156,796.87 Monthly 9,750.35 10,237.87 10,749.76 11,287.25 11,851.62 12,444.20 13,066.41 Biweekly 4,500.16 4,725.17 4,961.43 5,209.50 5,469.98 5,743.48 6,030.65 Hourly 56.2520 59.0646 62.0179 65.1188 68.3747 71.7934 75.3831 Annual 127,119.29 133,475.25 140,149.01 147,156.46 154,514.29 162,240.00 170,352.00 Monthly 10,593.27 11,122.94 11,679.08 12,263.04 12,876.19 13,520.00 14,196.00 Biweekly 4,889.20 5,133.66 5,390.35 5,659.86 5,942.86 6,240.00 6,552.00 Hourly 61.1150 64.1708 67.3793 70.7483 74.2857 78.0000 81.9000 Annual 151,000.16 158,550.17 166,477.68 174,801.57 183,541.64 192,718.73 202,354.66 Monthly 12,583.35 13,212.51 13,873.14 14,566.80 15,295.14 16,059.89 16,862.89 Biweekly 5,807.70 6,098.08 6,402.99 6,723.14 7,059.29 7,412.26 7,782.87 Hourly 72.5962 76.2260 80.0373 84.0392 88.2412 92.6532 97.2859 City Clerk/Executive Assistant
Community Development & Public Works Director
Community Development Manager
Deputy City Manager
Police Captain
Assistant to the City Manager
La Palma Management Employees
Classification and Salary Table
July 1, 2027 through June 30, 2028
City Manager
Assistant City Manager
Attachment “C”
Resolution No. 2025-
Step A Step B Step C Step D Step E Step F Step G
Annual 177,138.85 185,995.79 195,295.58 205,060.36 215,313.38 226,079.05 237,383.00 Monthly 14,761.57 15,499.65 16,274.63 17,088.36 17,942.78 18,839.92 19,781.92 Biweekly 6,813.03 7,153.68 7,511.37 7,886.94 8,281.28 8,695.35 9,130.12 Hourly 85.1629 89.4211 93.8921 98.5867 103.5160 108.6918 114.1264 Annual 139,831.21 146,822.77 154,163.91 161,872.11 169,965.71 178,464.00 187,387.20 Monthly 11,652.60 12,235.23 12,846.99 13,489.34 14,163.81 14,872.00 15,615.60 Biweekly 5,378.12 5,647.03 5,929.38 6,225.85 6,537.14 6,864.00 7,207.20 Hourly 67.2265 70.5879 74.1173 77.8231 81.7143 85.8000 90.0900 Annual 163,174.76 171,333.49 179,900.17 188,895.18 198,339.94 208,256.93 218,669.78 Monthly 13,597.90 14,277.79 14,991.68 15,741.26 16,528.33 17,354.74 18,222.48 Biweekly 6,275.95 6,589.75 6,919.24 7,265.20 7,628.46 8,009.88 8,410.38 Hourly 78.4494 82.3719 86.4905 90.8150 95.3557 100.1235 105.1297 Public Works Manager
Public Works & Community Services Director
Police Chief
Agenda Item No. 16 May 6, 2025 | 1
City of La Palma
Agenda Item No. 16
MEETING DATE: May 6, 2025
TO: City Council
FROM: City Manager
SUBMITTED BY: Ryan Hallett, Assistant City Manager
Mike Matsumoto, Financial Consultant
AGENDA TITLE: Long-Term Fiscal Status and Draft Fiscal Year 2025-26 Budget RECOMMENDED ACTION:
It is recommended that the City Council:
1. Receive the staff presentation on the Long-Term Fiscal Status Update;
2. Receive an overview of the Draft Fiscal Year 2025-26 Budget and provide direction for additional materials or information needed for the final budget to be presented on June 3, 2025; and
3. Transfer $4.3 million from General Fund Unreserved Fund Balance to Emergency Reserve ($2.3 million), Capital Outlay Reserves ($1 million) and General Fund Budget Reserve ($1 million) funds.
SUMMARY:
The Economy and La Palma’s Economic Outlook
As of April 2025, the economy presents a complex and evolving landscape shaped by recent policy changes and global uncertainties. The labor market remains relatively stable with fairly low unemployment, signaling continued resilience in employment; however, inflation has increased 2.4%, prompting the Federal Reserve to hold interest rates at 5.25%-5.50%. The stock market has become notably volatile, with the S&P 500 entering bear market territory due to growing trade tensions and new tariffs. Consumer spending is strong but shifting toward essentials, with luxury purchases more sensitive to economic uncertainty.
On a local level, the City maintains a prudent philosophy regarding its spending. Lessons from prior years indicate that the economy can fluctuate from growth to recession and back again. Fortunately, the City has very healthy reserves that have grown year after year. As of March 31, 2025, the current spendable reserves were approximately $20.5M, or 133% of FY 2025-26 General Fund expenditures, in the following funds:
Agenda Item No. 16 May 6, 2025 | 2
General Fund $5,414,000
Emergency Reserve 7,768,000
General Fund Budget Reserve 3,625,000
Capital Outlay Reserve (COR)* 1,254,000
Civic Center Replacement 2,468,000
Total $20,529,000
*COR is currently awaiting a $2 million reimbursement from the federal government. This reimbursement is tied to the City’s recently completed median improvement project, which qualified for federal funding support.
The General Fund Budget Reserve, Capital Outlay Reserve, and Civic Center Replacement funds hold General Fund money set aside by the City Council for various reasons, so they are not restricted by an outside agency.
Ten-Year General Fund Financial Forecast
The 10-year General Fund forecast compares projected revenues and expenditures from FY 2025– 26 through FY 2034–35. The forecast begins with a balanced budget in FY 2025–26, with both revenues and expenditures at $15.4 million. Over the next several years, expenditures are projected to slightly outpace revenues. Beginning in FY 2030–31, however, projected revenues begin to exceed expenditures, with the gap widening each year. By FY 2034–35, revenues are anticipated to reach $20.2 million compared to $18.7 million in expenditures, resulting in a projected surplus of approximately $1.5 million.
It’s important to note that a projected budget deficit in the financial forecast does not mean the City will actually experience a deficit. In fact, any shortfall reflected in the forecast is largely self-imposed, primarily due to the annual discretionary transfer of $400,000 to other funds, and no forecasted deficit in any year has exceeded this amount.
Second, staff takes a very conservative approach to forecasting revenues, often underestimating incoming funds, and budgets expenses at the higher end of expected costs. As a result, the financial forecast may show a deficit, or even a small surplus, on paper. In actuality, however, the City consistently ends the year with a much larger actual surplus, primarily because revenues exceed these cautious projections and departments routinely spend less than their full budgeted amounts. In short, the City’s forecasting approach is intentionally cautious, resulting in stronger-than-expected year-end financial performance.
Draft FY 2025-26 Budget
Projected General Fund Revenues
Estimated FY 2025-26 General Fund revenues are $15,442,300, a 3.5% increase over projected FY 2024-25 revenues. The City’s five largest revenue categories are Property Tax, Transaction and Use Tax (Measure JJ), Sales Tax, Utility Users Tax, and Transient Occupancy Tax (hotel tax), not including interfund transfers.
Agenda Item No. 16 May 6, 2025 | 3
The following is a summary of the five largest revenue categories:
• Property Tax – Property tax revenues have continued to perform strongly, with staff projecting a modest increase of 3.5% compounded growth from the Fiscal Year 2023-24 actual property tax revenues. Property taxes are based on the taxable assessed values of property, which, due to Proposition 13, are frequently much lower than market values. Moreover, the city participates in the Teeter plan, which ensures that the County of Orange compensates the City for property taxes regardless of any delinquent payments. • Transactions and Use Tax & Sales Tax and – The City received a positive audit adjustment from the State during FY 2023-24, but even without that adjustment, sales tax was still higher than the prior year. For FY 2024-25, staff and sales tax consultants anticipated a decline in sales tax revenues and projected slower revenue growth ahead (after adjusting for the prior year audit adjustment). Fortunately, the current year sales tax (adjusted) appears to have no decline. The FY 2025-26 Budget reflects an increase of about 1% over the actual amounts received during FY 2022-23.
• Utility Users Tax (UUT) – UUT revenues have remained strong, leading staff to anticipate a
5.5% increase for the upcoming fiscal year.
• Transient Occupancy Tax (TOT or Hotel tax) – Staff initially projected $600,000 in revenue for Fiscal Year 2024-25. Based on actual trends, the City has budgeted $640,000 for the upcoming fiscal year.
Other significant changes in General Fund revenues for FY 2025-26 include the following:
• Charges for Services are projected to decrease by 4.3%. This adjustment reflects a realignment of budgeted revenues to more closely match recent actual collections, ensuring a more accurate and conservative forecast.
• Other Revenues are projected to increase by 59.2%, largely due to the anticipated addition of new billboard advertising revenue.
Agenda Item No. 16 May 6, 2025 | 4
• Intergovernmental Revenues are expected to decline by 69.9%, primarily because of the expiration of a one-time grant received in the prior fiscal year, which will not recur in FY 2025-
26. Projected General Fund Expenditures
Staff has drafted a budget using a status quo approach with similar programs and activities to those planned in the previous budget. Therefore, estimated FY 2025-26 General Fund expenditures and transfers are $15,399,300, a 3.9% increase over projected FY 2024-25 expenditures and transfers.
Consequently, a surplus of $43,000 is estimated for FY 2025-26, a 54.7% decrease over the projected FY 2024-25 surplus of $94,400.
Personnel Changes
Personnel costs account for 63.6% of the draft FY 2025-26 General Fund Budget. The draft budget includes a 5.5% increase in personnel costs compared to the prior year, primarily due to the first year of implementing a new three-year labor agreement. The agreement provides a 5% cost-of-living adjustment for employees and is anticipated to be approved by the City Council at their May 6 meeting.
Aside from standard merit-based salary adjustments and a limited number of employee promotions, no additional changes to personnel staffing levels are included in the draft budget.
Maintenance and Operations
Changes The Draft FY 2025-26 General Fund Budget allocates 24.6% to Maintenance and Operation costs, marking a 0.2% decrease from the previous year while maintaining the same level of services and service quality. Despite this being a status quo budget, it is important to highlight several key changes and new expenses outlined in the draft FY 2025-26 Budget:
• Allocated an additional $16,500 to the City Manager division to cover the carryover of the fee study and a portion of City Manager recruitment costs, as some expenses are expected to be incurred in the prior fiscal year.
• Reduced labor negotiation services by $15,000, in the City Attorney division as new memorandums of understanding are expected to be finalized during the current fiscal year.
Agenda Item No. 16 May 6, 2025 | 5
• A $20,000 reduction is reflected in the City Clerk division due to the absence of scheduled election costs in the upcoming fiscal year.
• A $12,400 increase in the Finance Division for an update to the City’s finance system approved by the City Council in February 2025.
• Increased the animal control services contract in the Police Administration division to $140,000 to account for an expected contract adjustment. • Increased the crossing guard services contract in the Police Operations division to $141,600 in anticipation of a contract increase.
• Established a separate Public Works department for accounting and operational clarity following City Council approval to restructure the former combined Public Works & Community Services department in February 2025.
• Reduced custodial services costs in the Citywide Maintenance division by $89,000 and hired a new full-time employee to perform the work in-house this fiscal year, resulting in ongoing cost savings for the City.
• Increased utilities like gas and electricity as well as office supplies due to general cost increases in various divisions.
• Decreased vehicle operating expenses due to newer vehicles not requiring as much ongoing maintenance in various divisions.
• Realigned expenditures to meet current and future operational needs while reducing ongoing costs in various divisions.
Internal Service Funds Changes
Internal Service Funds, accounting for 8.6% of the draft FY 2025-26 Budget, are utilized to manage the finances for goods or services that one department of the City provides to other departments, based on a cost reimbursement model. The budget for these funds, covering areas such as Insurance, Vehicle Replacement, Technology Replacement, and Capital Outlay, is expected to decrease by 1.6% compared to the previous year. While insurance costs are projected to rise, the overall impact on the budget is offset by a substantial reduction in vehicle replacement costs. This decrease is due to the City's shift to a vehicle lease program, which requires significantly less ongoing funding compared to the traditional model of purchasing vehicles outright. Additionally, capital outlay expenses have decreased as a result of a one-time equipment purchase in the prior fiscal year, which was fully funded through grant proceeds and does not recur in the upcoming budget.
Transfers Changes
The draft FY 2025-26 Budget includes $494,500 in transfers out, representing an increase of $94,500
Agenda Item No. 16 May 6, 2025 | 6
compared to the prior year. The additional transfer is allocated to support 50% of the cost of a School Resource Officer (SRO), a position that was previously funded by a grant the City no longer receives.
Transfers to the Capital Outlay Reserve Fund and the Civic Center Replacement Fund remain unchanged from the prior year.
Special Revenue Funds
Special revenue funds are allocated to manage specific revenues that are legally earmarked for expenditures for designated purposes, such as public safety and road maintenance. Key points of the draft FY 2025-26 Budget include:
• Possible implementation of a new body-worn camera program and in-car video system in the Supplemental Law Enforcement Services Fund ($63,500 total). • Purchase of miscellaneous SWAT equipment ($8,000) in the Asset Seizure Fund.
Capital Improvement Program
As part of the annual budget process, staff develops a ten-year Capital Improvement Plan (CIP) with a five-year CIP included in the draft and adopted budget. The CIP lists the major infrastructure projects planned for the subsequent fiscal year and four additional future years. In addition to listing the specific projects and their estimated cost, funding sources are identified. Generally, the City focuses its CIP on arterial and residential roadway rehabilitation (i.e., paving projects). However, the CIP also lists major projects such as water and sewer system upgrades, intersection improvements, or major repairs to City facilities (e.g., roof replacement, Americans with Disability Act required improvements, seismic improvements, etc.).
Highlights of the draft FY 2025-26 Capital Improvement Plan include:
• Continued progress on the City Yard renovation.
• Ongoing collaboration with neighboring cities on the design, engineering, and environmental costs associated with the expansion of the Del Amo Avenue Bridge. • Rehabilitation of La Palma Avenue and a portion of Valley View Street. • Interior refurbishment of the Police Department, including updates to office spaces, common areas, and facility finishes to enhance functionality, appearance, and working conditions. • Zone 4 residential paving project (Residential area west of Walker St., East of Moody St., South of Houston Avenue, North of Edison Right-of-way). • Ongoing maintenance and repairs for various water and sewer system projects to ensure reliable service delivery and maintain infrastructure integrity.
Agenda Item No. 16 May 6, 2025 | 7
Options for General Fund unreserved fund balance
The General Fund unreserved fund balance (over and above the $1,500,000 needed for cash flow) has been increasing over the past few years to $5,366,356 at June 30, 2024. The City Council may wish to consider transfers for some or all of the money. In May 2023, the City transferred the excess of $1 million unreserved fund balance in the General Fund. • Additional money could be transferred to the Emergency Reserve fund. Additional money could provide a better cushion in the event of a major reduction in revenue, natural disaster, or other unforeseen events. The economic outlook is uncertain at this time, so additional reserves may be helpful.
• Additional money could be transferred to the Capital Outlay Reserve account to fund future capital projects.
• Additional money could be transferred to the General Fund Budget Reserve fund. This fund is holding unrestricted General Fund money, allowing the Council to see whether some excess funds from prior years might be needed to balance future year operations due to an economic downturn.
Staff is recommending that the City Council transfer $4.3 million from the General Fund Unreserved Fund Balance to Emergency Reserve ($2.3 million), Capital Outlay Reserve ($1 million), and General Fund Budget Reserve ($1 million) funds for reasons stated above.
FISCAL IMPACT:
The only fiscal impact would be the transferring of funds from the General Fund Unreserved Fund Balance to Emergency Reserve ($2.3 million), Capital Outlay Reserve ($1 million), and General Fund Budget Reserve ($1 million) funds. Other than that, there is no fiscal impact in discussing the financial situation or the elements presented in this plan. Direction given, however, will be incorporated into budget preparation and other financial processes.
ATTACHMENTS:
1. Ten-Year General Fund Financial Forecast
2. Draft FY 2025-26 Budget General Fund Summary
BUDGET WORKSHEET
GENERAL FUND: TEN‐YEAR FORECAST
STATUS QUO
25‐26 Draft
Budget 26‐27 27‐28 28‐29 29‐30 30‐31 31‐32 32‐33 33‐34 34‐35 Revenues 15,442,300 16,024,433 16,471,000 16,919,100 17,381,800 17,907,000 18,448,300 19,008,701 19,588,402 20,187,903 Expenditures 15,399,300 16,125,023 16,775,038 17,274,770 17,541,270 17,772,570 17,965,670 18,207,870 18,405,570 18,655,170 Surplus/(Deficit) 43,000 (100,590) (304,038) (355,670) (159,470) 134,430 482,630 800,831 1,182,832 1,532,733 $15.4 $16.0
$16.5
$16.9
$17.4
$17.9
$18.4
$19.0
$19.6
$20.2
$15.4
$16.1
$16.8
$17.3
$17.5
$17.8 $18.0
$18.2
$18.4
$18.7
$15.0$15.5$16.0$16.5$17.0$17.5$18.0$18.5$19.0$19.5$20.0$20.5 25‐26 Draft
Budget
26‐27 27‐28 28‐29 29‐30 30‐31 31‐32 32‐33 33‐34 34‐35
Millions
DRAFT FY2025-26
GENERAL FUND BUDGET SUMMARY
Revenues
Expenses by Department
Department Division FY24-25
Projected
Draft FY25-26
Budget
%
Change
General Government
City Council $123,000 $135,600 10.2%
City Manager $689,900 $766,900 11.2%
Legal Services $255,200 $243,000 -4.8%
City Clerk $142,600 $151,800 6.5%
Total General Government: $1,210,700 $1,297,300 7.2%
Administrative Services
Administration $251,100 $262,300 4.5%
Fiscal Services $463,000 $483,900 4.5%
Human Resources $2,710,900 $2,994,000 10.5%
Technology And Communications $363,000 $376,100 3.6%
Total Administrative Services: $3,788,000 $4,116,300 8.7% Police
Administration $729,900 $772,700 5.9%
Operations $451,900 $483,300 6.9%
Patrol $2,909,900 $2,847,800 -2.1%
Services $445,500 $390,300 -12.4%
Category
FY24-25
Projected
Draft FY25-26
Budget
%
Change
Property Tax $4,807,000 $5,095,000 6.0%
Transaction & Use Tax $2,293,800 $2,216,200 -3.4%
Sales Tax $1,834,300 $1,921,000 4.7%
Interfund Transfers $1,483,000 $1,483,000 0.0%
Utility Users Tax $1,100,000 $1,160,000 5.5%
Transient Occupancy Tax $600,000 $640,000 6.7%
Use of Money and Property $567,500 $584,200 2.9%
Charges for Services $578,000 $553,100 -4.3%
Franchise Fees $439,000 $465,000 5.9%
Licenses and Permits $438,500 $452,900 3.3%
Other Revenues $244,200 $388,800 59.2%
Residual Property Tax $331,000 $352,000 6.3%
Fines & Forfeitures $100,100 $100,100 0.0%
Intergovernmental $103,000 $31,000 -69.9%
Total Revenue Source: $14,919,400 $15,442,300 3.5%
DRAFT FY2025-26
GENERAL FUND BUDGET SUMMARY
Department Division FY24-25
Projected
Draft FY25-26
Budget
%
Change
Community Education $83,400 $84,100 0.8%
Investigations $779,200 $799,300 2.6%
Records And Communications $858,700 $875,000 1.9%
Total Police: $6,258,500 $6,252,500 -0.1%
Community Services
Administration $394,700 $209,400 -46.9%
Health And Wellness $137,200 $143,900 4.9%
Recreation Facility Operations $320,500 $334,100 4.2%
Special Events $241,600 $259,300 7.3%
Youth And Family $231,100 $237,700 2.9%
Total Community Services: $1,325,100 $1,184,400 -10.6%
Public Works
Administration $0 $287,100 N/A
Citywide Maintenance $392,300 $339,000 -13.6%
Engineering $61,100 $62,100 1.6%
Parks And Medians $345,400 $378,700 9.6%
Streets $396,000 $401,000 1.3%
Total Public Works: $1,194,700 $1,467,900 22.9%
Community Development
Administration $216,000 $160,400 96.6%
Building & Safety $248,300 $245,200 -14.3%
Code Enforcement & Business
Licenses $155,300 $151,800 6.2%
Planning $28,400 $29,000 -85.7%
Total Community
Development: $648,000 $586,400 -9.5%
Other Financing Use
Transfers Out $400,000 $494,500 23.6%
Total Other Financing Use: $400,000 $494,500 23.6%
Total Expenditures: $14,825,000 $15,399,300 3.9%