MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF LAGUNA BEACH
AND
THE LAGUNA BEACH POLICE AND FIRE
MANAGEMENT ASSOCIATION
Police - Unit
July 1, 2026 – December 31, 2026
Attachment 2
6 TABLE OF CONTENTS
Chapter 1 - Introduction..................................................................................................... 1
1.0 Preamble................................................................................................................. 1
2.0 Term & Reopener.................................................................................................... 1
3.0 Recognition ............................................................................................................. 1 Chapter 2- Compensation ................................................................................................. 1
4.0 Salary and Compensation ....................................................................................... 1
4.1 Pay Plan Structure......................................................................................... 1
4.2 Placement at the Salary Step ........................................................................ 1
4.3 Salary ............................................................................................................ 1
4.4 Direct Deposit................................................................................................ 2
5.0 Certification and Education Pay............................................................................... 2
6.0 Overtime for Lieutenants......................................................................................... 3
7.0 Deferred Compensation .......................................................................................... 3
8.0 City-Provided Take Home Automobile or Automobile Allowance ............................. 3
9.0 Exceptional Performance Pay ................................................................................. 3
10.0 Cell Phone Stipend & Internet Stipend.....................................................................4
11.0 Legal Defense Fund Contribution ............................................................................ 4 Chapter 3 - Benefits .......................................................................................................... 4
12.0 Retirement............................................................................................................... 4
13.0 Health Benefits ........................................................................................................ 6
13.1 Rates..........................................................................................................7
13.2 Selection of Carriers ...................................................................................7
13.3 City Contribution Maximum ........................................................................ 7
13.4 Medical Coverage for Domestic Partners ................................................... 7
13.5 Medical Insurance Waiver .......................................................................... 7
13.6 Flexible Spending Plan.............................................................................. 8
13.7 Medical Plan Coverage for Retirees .......................................................... 8
13.8 Retirement Health Savings Plan................................................................. 8
13.9 Reopener – Change in Medical Plan............................................................... 8
14.0 Light/Modified Duty.................................................................................................. 8
15.0 Educational and Professional Development Reimbursement Program....................9
15.1 Procedure.................................................................................................. 9
16.0 Physical Examination Reimbursement..................................................................... 9
17.0 Life Insurance .......................................................................................................... 9
18.0 Long Term Disability ..............................................................................................10
19.0 Shopper Parking Permits....................................................................................... 10
20.0 Work Schedule ..................................................................................................... 10
21.0 Uniforms............................................................................................................... 10 Chapter 4 – Leave of Absence ........................................................................................10
22.0 Vacation ............................................................................................................... 10
22.1 Vacation Accrual: .................................................................................... 10
22.2 Use of Vacation ...................................................................................... 11
22.3 Payment for Unused Vacation ................................................................ 11
23.0 Holidays ............................................................................................................... 13
23.1 Recognized Holidays.............................................................................. 13
23.2 Compensation For Holidays ................................................................... 13
23.3 Weekend Holidays.................................................................................. 14
24.0 Sick Leave............................................................................................................ 14 7 24.1 Sick Leave Accruals .............................................................................. 14
24.2 Sick Leave Banks .................................................................................. 14
24.3 Use of Sick Leave.................................................................................. 14
24.4 Evidence of Illness:................................................................................ 14
24.5 Sick Leave and Temporary Disability..................................................... 14
24.6 Sick Leave for Dependent Care............................................................. 14
24.7 Holidays During Sick Leave................................................................... 14
24.8 Payment for Unused Sick Leave ........................................................... 14
25.0 Bereavement Leave ............................................................................................. 14
26.0 Jury Duty Leave ................................................................................................... 16
27.0 Paid Administrative Leave.................................................................................... 16 Chapter 5 - Employer Employee Relations..................................................................... 16
28.0 Probationary Period.............................................................................................. 16
29.0 Discipline.............................................................................................................. 16
29.1 Policy: .................................................................................................... 16
29.2 Written Notice:....................................................................................... 16
29.3 Employee Review:................................................................................. 16
29.4 Employee Response: ............................................................................ 16
29.5 Temporary Leave with Pay:................................................................... 17
29.6 Representation: ..................................................................................... 17
29.7 Right of Appeal:..................................................................................... 17
30.0 Grievance Procedure ........................................................................................... 17
30.1 Matters Subject to Grievance Procedure: .............................................. 17
30.2 Grievance Procedure:............................................................................ 17
30.3 Appeal to the City Manager: .................................................................. 18
30.4 Extension of Time Limitations:............................................................... 18
31.0 Layoff ................................................................................................................... 18
31.1 Intent of Procedure:............................................................................... 18
31.2 Procedures: ........................................................................................... 18
32.0 Management Rights ............................................................................................. 20
33.0 The Confidentiality of Management Discussions and Working through the Chain of Command ............................................................................................................................. 21
34.0 Release Time ....................................................................................................... 21
35.0 Savings Clause .................................................................................................... 21
36.0 Full and Complete Understanding ........................................................................ 22 8
Chapter 1 - Introduction
1.0 Preamble
This Memorandum of Understanding ("MOU") has been reached and prepared after meeting and conferring in good faith between the City of Laguna Beach and representatives of the Laguna Beach Police and Fire Management Association (the Association) pursuant to the provisions of Government Code Section 3500, et. seq.
2.0 Term & Reopener
This MOU shall remain in full force and effect from July 1, 2026, until December 31, 2026.
3.0 Recognition
The City recognizes the Laguna Beach Police and Fire Management Association as the Association that represents the bargaining unit of sworn public safety managers of the Police Department in the City of Laguna Beach as follows: All employees in the classifications of Police Captain and Police Lieutenant. The Association also represents the Civilian Services Administrator. All classifications in this unit are exempt employees as defined by the Fair Labor Standards Act.
Chapter 2- Compensation
4.0 Salary and Compensation
4.1 Pay Plan Structure: Compensation for employees in the unit is based on a salary range with a low and high point. Employees may receive increases in compensation by moving within the range. An employee may move within the range based on the discretion of the Police Chief’s assessment of their performance and approval of the City Manager. Such movement is not subject to challenge, including the filing of a grievance.
4.2 Placement at the Salary Step: Employees in the unit are placed at the salary step at the time they enter the unit or receive a promotion within the unit (i.e., from Police Lieutenant to Police Captain). An employee promoted into a position in the bargaining unit will receive a base salary increase of at least five percent (5%).
4.3 Salary:
Effective the pay period that includes July 1, 2026, all employees in the unit shall receive a four percent (4.0%) salary increase in their monthly base salary in effect at that time.
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The salary range for all classifications in the bargaining unit shall be twenty percent (20%).
4.4 Direct Deposit: All Association members shall participate in the City's Direct Deposit Program.
5.0 Certification and Education Pay
Police Captains and Police Lieutenants shall receive two- and one-half percent (2.5%) of base salary for possession of a bachelor’s degree.
The Civilian Services Administrator shall receive five percent (5.0%) of base salary for possession of a master’s degree. Police Captains and Police Lieutenants shall receive seven- and one-half percent (7.5%) of base salary for possession of a master’s degree.
These degrees enhance employees’ ability to perform their job. The degree must be obtained from a college or university accredited by the United States Department of Education, Council for Higher Education Accreditation, Western Association of Schools and Colleges, or a similar regional accrediting association.
The parties agree that to the extent permitted by law, the compensation above for educational degrees is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Educational Incentive Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.
Police Captains and Police Lieutenants shall receive two percent (2.0%) of base salary for receipt of an Advanced POST Certificate, two percent (2.0%) of base salary for receipt of a Supervisory POST Certificate, and five percent (5.0%) of base salary for receipt of a Management POST certificate.
However, since the receipt of a Management POST certificate requires receipt of an Advanced POST Certificate, upon receipt of a Management POST certificate, the employee will no longer receive pay for the Advanced POST Certificate.
The degree must be obtained from a college or university accredited by the United States Department of Education, Council for Higher Education Accreditation, Western Association of Schools and Colleges, or a similar regional accrediting association.
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The parties agree that to the extent permitted by law, the compensation above for POST Certifications is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Peace Officer Standard Training (POST) Certification Pay.
However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.
6.0 Overtime for Lieutenants
A Police Captain or Chief of Police shall approve overtime for Police Lieutenants for the circumstances set forth below:
Critical Incidents: Spontaneous protests, incidents involving barricaded suspects, officer-involved shootings, or when additional supervision is required for unforeseen long-term events that move into extended operational periods and requires the Lieutenant to respond while off-duty or to work beyond their regular scheduled hours.
Grant Funded Events/ Special Projects: This overtime is for the following where the City is reimbursed by a third party: Office of Traffic Safety (OTS) and Operation Stonegarden (OPSG) grant funded events, or any preplanned multiagency incidents where management oversight is needed, or any preplanned special project where the Lieutenant is needed to respond off-duty and work beyond their normal work hours.
7.0 Deferred Compensation
Employees in the unit shall receive a City contribution of two percent (2%) of base salary (which shall be provided per pay period) which shall be contributed to a City approved deferred compensation program (per IRS Code section 457(b)). Employees may make additional contributions per pay period to their deferred compensation account up the maximum permitted law.
8.0 City-Provided Take Home Automobile or Automobile Allowance Employees receive either a take-home automobile or an automobile allowance of two hundred dollars ($200) per month at the discretion of the City Manager. A City provided take home automobile can be used by an employee to commute to and from the City or for any other work-related or approved purpose.
9.0 Exceptional Performance Pay
Employees in the unit may be eligible to receive exceptional performance pay (i.e., an annual performance bonus or merit pay) of up to five percent (5%) of base salary. An employee may be eligible to receive an additional five percent (5%) for a year or longer at the discretion of the City Manager. The assessment for such pay will be based on employee performance per the employee's 11
performance evaluation and recommendation of the Police Chief. The final decision will be made by the City Manager. The employee is eligible to receive the exceptional performance pay until their next evaluation date. Exceptional performance pay is not subject to challenge, including the filing of a grievance.
10.0 Cell Phone & Internet Stipend
Employees shall receive an internet stipend of $50.00 per month, and either a monthly cell phone stipend of $80.00 or a City-issued phone.
11.0 Legal Defense Fund Contribution
All members shall be reimbursed for up to $250 per year for the yearly contributions made by them to the Legal Defense Fund for legal services.
Chapter 3 - Benefits
12.0 Retirement
The City contracts with the Public Employees' Retirement System for administration of the retirement program. Coverage for regular full-time employees is as follows:
a) Retirement Formula
1. Safety Employees
Police Lieutenants and Police Captains hired before April 2, 2012, are covered by the 3%@ 50 formula provided for by the Public Employees' Retirement Law at Government Code section 21362.2.
Police Lieutenants and Police Captains hired on or after April 2, 2012, and who do not meet the definition of "new
members" as defined by the Public Employees' Pension
Reform Act of 2013 (PEPRA), are covered by the 3%@ 55
formula provided for by the Public Employees' Retirement Law at Government Code section 21363.1.
Unit members hired on or after January 1, 2013, who are defined as "new members" under the PEPRA, are covered
by the 2.7%@ 57 formula provided for by the Public
Employees' Retirement Law at Government Code section
7522.25(d).
2. Miscellaneous (non-safety) Employees
Unit members (i.e., the Civilian Services Administrator) who 12
are not "new members" as defined by the Public Employees' Pension Reform Act of 2013 - PEPRA are covered by the
2.5% @ 55 formula provided for by the Public Employees' Retirement Law at Government Code section 21354.4.
Unit members who are defined as "new members" under the PEPRA, are covered by the 2%@ 62 formula provided for
by the Public Employees' Retirement Law at Government
Code section 7522.20(a).
b) Employee Contributions to the Retirement System
1. Safety Employees:
a. Employees subject to the 3%@50 and
3%@55 Formulas
These employees shall contribute the entire required
member contribution of nine percent (9%) of
compensation earnable.
In addition to the nine percent (9%) compensation
earnable employee-paid member contribution noted
above, these employees pay an additional three
percent (3.0%) of compensation earnable of the
required employer contribution as cost sharing in
accordance with Government Code section 20516(f).
Thus, these employees pay the full nine percent (9%)
of compensation earnable member contribution and
three percent (3%) of compensation earnable of the
required employer contribution as cost sharing for a
total of twelve percent (12%) of compensation
earnable for retirement contributions.
The City has adopted the CalPERS resolution in
accordance with and as permitted by IRS Code
section 414(h)(2) to ensure that the employees'
payment (i.e., "pick up" as that term is used in section 414(h)(2)) of their employee contribution is made on a
pre-tax basis.
b. Employees subject to the 2.7%@57 Formula
These employees shall pay the statutorily mandated
employee contribution rate of one half of the total
normal cost as set forth on the CalPERS annual rate
sheet.
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2. Miscellaneous (non-safety) Employees
a. Non-safety employees subject to the
2.5%@55 Formula
These employees shall contribute the eight percent
(8%) of compensation earnable as the required
member contribution.
b. Non-safety employees subject to the 2%@62 Formula
These employees shall pay the statutorily mandated
employee contribution rate of one half of the total
normal cost as determined each year by CalPERS in
its annual valuation report.
c) Optional Benefits
In addition to the retirement formulas provided above, the following optional benefits are in effect:
1. One Year Final Compensation, Government Code
section 20042.
i. For employees defined as new members by the
PEPRA, their retirement will not be calculated by the
One Year Final Compensation provision, but rather,
based on the three (3) year average compensation as
provided for in the PEPRA per Government Code
section 7522.32(a).
2. Service Credit for Unused Sick Leave. Government
Code section 20965.
3. The 1959 Survivors Benefit Level IV. Government
Code section 21574.
d) Special Compensation Provided In this MOU
For each form of special compensation provided in this MOU that is required to be reported to CalPERS per Title 2 California Code of Regulations section 571 for classic members of CalPERS and per Section 571.1 for “New Members” as defined by the Public Employees’ Pension Reform Act of 2013 (“PEPRA”), the City will report that pay as pensionable compensation. CalPERS does, however, make the final determination as to whether any form of special compensation is pensionable.
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13.0 Health Benefits
All employees in the unit are eligible for enrollment in the medical, vision and dental benefit plans as agreed to between the City and the Association.
13.1 Rates: The City will pay 100% of the cost of medical coverage for the employee, 90% of the cost for employee plus one dependent, and 90% of the cost of the employee plus two or more dependents, with the employee responsible for the remaining 10%. The preceding percentage of 90% for the cost of employee plus one or more dependents will sunset on the last date of the term of this MOU (and the previous percentage of 87.5% will be reinstated) unless the parties agree that it will continue beyond that date. If the cost of medical insurance premium increases by ten percent (10%) or more in any calendar year of this MOU, the parties agree that, either party may reopen labor negotiations on this Article 13.0 only.
Vision coverage is made available by the City at the employee's cost.
13.2 Selection of Carriers: Health Insurance carriers are annually selected in the City by a committee of representatives from each of the employee associations (medical task force) meeting with representatives of the City.
To ensure that this process does not prevent the City from moving forward with a decision to either keep the same carrier or change carriers, the parties agree that each year when health insurance carriers are evaluated, the Association will be permitted to have a representative on the medical task force subject to the following: The Association agrees that if an agreement cannot be reached at the task force that it will not object to the City to making modifications or no changes to the health insurance.
13.3 City Contribution Maximum: Employees of the City have a two-tier medical system that exists for purposes of determining the City's contribution to employee medical insurance. The City's contribution to any employee's medical insurance premium under the premium sharing formula in Section 13.1 of the MOU shall be limited to the amount of the contribution under the above premium sharing formula for the HMO plan rate for an employee plus two or more dependents regardless of the employee's choice of medical plan.
13.4 Medical Coverage for Domestic Partners: Medical coverage shall be provided for domestic partners. Dental coverage shall be provided to domestic partners under the same terms as other dependents.
13.5 Medical Insurance Waiver: Employees who are able to demonstrate to the City's satisfaction that they have minimum essential coverage as defined by the Affordable Care Act (through another source other than coverage in the individual market, whether or not obtained through Covered California), may opt out of participation in the City's plan and will be paid sixty percent (60%) of the HMO employee only rate. This payment will be made to the employee on a biweekly basis as a part of the 15
employee's payroll check.
If at any time during the term of the MOU, any provision of Federal law or regulation would impose greater financial cost or penalties on the City above and beyond the City's agreed upon contribution to an employee's cafeteria health insurance, the parties agree to reopen negotiations. The negotiations will be for the limited purpose of making changes to the health insurance that would be needed to ensure that such additional cost or penalties are avoided.
13.6 Flexible Spending Plan: The City will make a flexible spending plan available to employees pursuant to relevant IRS Code Section 125 to allow an employee to contribute a portion of his or her income each year on a pre-tax basis into an account from which they may receive reimbursement for medical, dental and dependent care expenses.
13.7 Medical Plan Coverage for Retirees: Employees Hired Before July 1, 2013: The option of continuing membership in the City's medical plan shall be available to employees who retire from employment with the City after a minimum of three (3) years of service. The employee will be responsible for the entire premium.
Employees hired on or after July 1, 2013: The option of continuing membership in the City's medical plan shall be available to employees who retire from employment with the City after a minimum of ten (10) years of service. The employee shall be responsible for the entire premium.
13.8 Retirement Health Savings Plan: All employees are required to participate in the City's Retirement Health Savings Plan (RHS). The City shall make a pre-tax contribution of two hundred dollars ($200.00) per month per employee to the RHS plan on the employee's behalf, paid at ninety-two dollars and thirty-one cents ($92.31) per pay period.
13.9 Reopener - Change in Medical Plan: If, during the term of this MOU, a decision is made to change or modify the current medical care coverage, the entire Article 13.0 - 13.3 shall be reopened for negotiations.
14.0 Light/Modified Duty
When an employee who has suffered an industrial injury which has been accepted by the City is authorized by a physician to return to work with restrictions, the Police Chief may assign and schedule the employee on a temporary basis to perform departmental duties from which the employee has not been restricted, and which are consistent with the employee's work restrictions. These duties need not be duties which are required or included as part of the employee's normal assignment. Light duty is limited to twelve (12) weeks but may be extended up to an additional four (4) weeks if it appears to the satisfaction of the Police Chief that imminent return to work is likely. 16
If an employee who has been authorized to return to work with restrictions refuses to accept a light/modified duty assignment consistent with those restrictions, they will not be entitled to receive Labor Code section 4850 benefits.
In accordance with California Labor Code section 4850, no disability indemnity shall be paid to any employee concurrently with wages or salary payments.
15.0 Educational and Professional Development Reimbursement Program The purpose of this program shall be the reimbursement for tuition and book expenses to employees attending classes on the employee's own time which are to the direct benefit of the individual employee and the City. The approval of the request is subject to budgetary limitations.
15.1 Procedure:
The Police Chief and the City Manager will determine what types of courses will be allowed for reimbursement prior to commitment by the employee. Permitted use of funds includes tuition, books, laboratory and parking fee, certification maintenance and course fees. In addition, professional association memberships, seminars, conferences, including material fees, and travel costs are included. Courses considered by the Police Chief and the City Manager for reimbursement shall be designed to directly improve the knowledge of the employee in the public service, which will improve performance and enhance advancement opportunities.
The Police Chief may recommend reimbursement upon the successful completion of college or professional conference/development courses.
Each employee is limited to a maximum payment of one thousand dollars ($1,000) per fiscal year, dependent upon the availability of budgeted monies.
The City Manager or designee may authorize payment of additional educational and professional development reimbursement beyond the maximum payment for employees who are seeking formal degrees.
16.0 Physical Examination Reimbursement
The City will reimburse employees in the bargaining unit up to three hundred dollars ($300) per year for expenses incurred for a general examination to determine physical fitness. The first reimbursement shall not occur until at least two (2) years after the employee's pre-employment physical.
17.0 Life Insurance
All employees are covered by a fifty-thousand-dollar ($50,000) Life and Accidental Death and Dismemberment policy.
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18.0 Long Term Disability
All employees are eligible for Long Term Disability Insurance coverage of sixty percent (60%) of the first five thousand dollars ($5,000) of salary after a sixty (60) calendar day elimination period. If this City increases this benefit for the Fire unit of the Association, it will increase it to the same amount for the employees in this Police unit.
19.0 Shopper Parking Permits
Employees shall receive a Shopper Parking Permit from the City at no cost.
20.0 Work Schedule
All employees in the bargaining unit will work a 5/40, 9/80 or 4/10 regular work schedule based upon the needs of the Department. The Department may change work schedules by providing at least two weeks' notice. If an employee needs some additional time to adjust to the new schedule, the City will evaluate such a request.
21.0 Uniforms
Employees in the unit will receive City provided uniforms. In accordance with PERS regulations, the City will report the value of the uniform the current amount is $308.00 per year for Lieutenants and $450.00 per year for Captains as compensation earnable for each employee who is provided with a City uniform. The parties agree that to the extent permitted by law, this remuneration is special compensation and shall be reported as such pursuant to Title 2, CCR 571(a)(5) Statutory Items - Uniforms. "New members" as defined under the Public Employees' Pension Reform Act of 2013 will not have the value of the uniforms reported as special compensation.
Chapter 4 - Leaves of Absence
22.0 Vacation
22.1 Vacation Accrual: Each employee shall accrue vacation as follows:
Hours of Vacation Accrued
0 to completion of 9 years of service - 5.24 hours per pay period. 10 + years of service - 6.77 hours per pay period.
Vacation leave accrues from the date of hire at bi-weekly rates consistent with the above schedule. Years of service for eligibility for vacation is based on years of service at a qualifying public agency. This includes both time with the City and any other public agency in which the employee was 18
employed. “Public agency" means any city, county, district, other local authority or public body of or within this state. See Government Code section 20056. For current employees, this would start two pay periods after they submit a complete application, and the City verifies previous government service.
On June 23, 2013, all vacation accruals were placed in a bank entitled the "Original" Bank. Additional vacation accruals were (since June 23, 2013) and are (prospectively) not permitted to be deposited into the Original Bank. Vacation in the Original Bank may be used in accordance with Section 22.2 of this Article or cashed out in accordance with Section 22.3 of this Article at the employee's hourly rate as of June 23, 2013.
Effective June 24, 2013, a new vacation accrual bank entitled the "New Bank" was created. Effective in the pay period following City Council approval of this MOU, employees are permitted to accrue vacation up to 600 hours. In the first pay period in December of each year, employees will be paid for any vacation in the "New Bank" above 600 hours at their then-current hourly rate.
In accordance with Section 22.2, employees may still use their vacation (both banks). However, for each employee, once the Original Bank has been depleted, it will be closed.
22.2 Use of Vacation: Vacation leave may be taken as it accrues. The dates of vacation leave may be selected by the employee but shall be approved by the Police Chief who shall consider the wishes of the employee and the needs of the City. Ultimately, however, the Police Chief has the discretion to grant or deny vacation based on the needs of the Department.
22.3 Payment for Unused Vacation:
a. During Employment:
By December 15 of each year, employees may make an irrevocable election to cash out up to the maximum number of hours of vacation leave they can accrue per year that will be earned in the following calendar year at the same rate of pay had the employee used those vacation benefits to receive paid leaves of absence. In the following year, the employees can receive the cash for the vacation leave they irrevocably elected to cash out in either two (2) separate increments (in July and December) or one (1) increment (in December), the total of which shall not exceed the maximum they can accrue in a year, as follows. Thus, if the employees so desire, they could elect to be paid up to one half of what they irrevocably elected to cash out on the second pay day in July with the remainder being paid on the second pay day in December or the employees can elect to be paid the entire amount they irrevocably elected 19
to cash out on the second pay day in December. However, if an employee's vacation leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out.
If an employee makes an irrevocable election to cash out vacation leave in the following calendar year and uses vacation leave in that subsequent year, the vacation leave used will come from vacation leave the employee had earned prior to January 1 of the year the employee has elected to cash out vacation leave. This is to ensure that assuming an employee had a vacation leave balance prior to January 1, the vacation leave used will not result in a reduction in the amount of vacation leave the employee will be eligible to cash out.
In addition to the above, an employee who has an "unforeseen emergency" (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources & Risk Management for a payoff of up to one year's accrual of vacation irrespective of whether and to the extent the employee has made an irrevocable election in the preceding December. The amount of vacation which may be paid off is limited to the amount necessary to meet the emergency.
Notwithstanding the above, at any time employees may continue to elect to cause the monetary value of accrued vacation to be added to their 457 Deferred Compensation account, thereby reducing their accrued vacation balance accordingly.
b. Upon Termination: Any employee who is about to terminate their employment and who has unused/accumulated vacation time in either bank shall have the vacation deposited into their RHS account. As noted above, deposit into the RHS of vacation time in the Original Bank will be deposited into the RHS (as permitted by Labor Code section 227.3 with an agreement of the parties) at the employee's hourly rate as of June 23, 2013. If an employee made an irrevocable election (in the prior calendar year) to cash out earned vacation for the calendar year in which they retire, they shall be paid as taxable wages for the amount of vacation they have earned to date in the year that they irrevocably elected to cash out. The balance of their vacation shall be deposited into their RHS account. It shall not be necessary to carry such employee on the payroll for the vacation period that is deposited into their RHS and the vacancy thus created may be filled at any time after the effective date of termination. When termination is caused by death of the employee, payment shall be made to the employee's designated beneficiary or in accordance with the law.
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23.0 Holidays
23.1 Recognized Holidays: The following holidays shall be observed by the City of Laguna Beach:
1. New Year's Day - January 1st
2. Martin Luther King Jr. Day - 3rd Monday in January
3. President's Day - 3rd Monday in February
4. Memorial Day - Last Monday in May
5. Juneteenth – June 19th
6. Independence Day - July 4th
7. Labor Day - 1st Monday in September
8. Veterans Day - November 11th
9. Thanksgiving Day - 4th Thursday in November
10. The day after Thanksgiving
11. Christmas Day - December 25th
Notwithstanding that the above are the holidays for employees in the unit, if the Police Chief needs the employee to work on any of the above holidays, they will be required to do so.
23.2 Compensation For Holidays: Employees receive nine (9) hours of pay for each of the above holidays. If an employee in the unit is assigned to a work schedule of more than nine hours per day, they must use vacation or administrative leave for the hours between nine and their scheduled hours to be paid for the entire holiday. For any holiday on which a unit member is required to work, they can bank the nine (9) hours as holiday leave. Any holiday leave still banked on the last pay period of June each year will be cashed out to the employee.
Employees in the classifications of Police Lieutenant, Police Captain and Civilian Services Administrator shall be entitled to holiday in lieu pay of nine (9) hours per holiday if they were in paid status for the entire day the day before and the day after the holiday (i.e., either the employee worked or was absent using paid leave for the entire day on such workdays):
This is because these employees work in classifications that require scheduled staffing without regard to holidays. If a holiday falls on one of their days off, they still receive their holiday-in-lieu pay for that holiday. If they want to take off on a holiday, they are required to use paid accrued leave, which must be approved in advance.
The parties agree that to the extent permitted by law, Holiday in Lieu Pay is special compensation and shall be reported as such pursuant to Title 2, CCR 571(a)(5) and 571.1(b)(4) as Holiday Pay. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation.
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23.3 Weekend Holidays: When a holiday falls on a Sunday, the following Monday shall be deemed to be the holiday in lieu of the day observed. If a holiday falls on a Saturday the preceding Friday is the holiday in lieu of the day observed.
For those employees who work an alternate work schedule, e.g., 9/80, when a holiday falls on a regularly scheduled day off, employees shall receive nine (9) hours added to their accrual bank.
24.0 Sick Leave
24.1 Sick Leave Accruals: Every employee shall accrue sick leave at the rate of 80 hours per year, 3.08 hours per pay period. Unused sick leave may be accumulated without limit.
24.2 Sick Leave Banks: The City shall maintain two sick leave banks. 1) The first bank is for sick leave earned between June 13,1988 and June 23, 2013; and 2) the second bank is for sick leave earned on or after June 24, 2013.
24.3 Use of Sick Leave: Sick leave use must be approved by the Police Chief.
Sick leave earned in the first bank (i.e., between June 13, 1988, and June 23, 2013) must be used before sick leave earned in the second bank.
24.4 Sick Leave and Temporary Disability: An employee who is entitled to temporary disability benefit payments may elect to take that number of hours or portions of hours of their accumulated sick leave, or the employee's accumulated vacation, as when added to the disability benefit payment will result in a payment to the employee of their full salary.
24.5 Sick Leave for Dependent Care: An employee shall be eligible to use accrued sick leave in accordance with Federal and State laws to care for an ill parent, spouse, registered domestic partner, child, sibling, grandparent, grandchild or designated person. The amount of sick leave which can be used for such purpose is one half of one year's annual accrued sick leave - 40 hours per year.
24.6 Holidays During Sick Leave: Observed holidays occurring during sick leave shall not be counted as a day of sick leave.
24.7 Payment for Unused Sick Leave:
Payment for accrued sick leave will be available as follows:
a) Sick Leave Earned Commencing June 13, 1988, through June 23, 2013. This sick may only be converted into the City's Retirement Health Savings (RHS) Plan at the employee's base hourly rate of pay 22
as of June 23, 2013, upon death, retirement for disability or for service, resignation or layoff, but not if dismissed or terminated for cause
b) Sick leave earned on or after June 24, 2013 may be converted into the City's Retirement Health Savings (RHS) Plan at the rate of fifty percent (50%) of the employee's base hourly rate of pay of its value in October or May of each fiscal year, upon death, retirement for disability or service, resignation or layoff, but not if dismissed or terminated for cause to the extent that it is not used in each fiscal year. Cash into the RHS Plan may be made one additional time each year under extraordinary circumstances if approved by the appropriate Chief and the Director of Human Resources & Risk Management.
c) Accrued sick leave may also be converted to service credit under the "Credit for Unused Sick Leave" option of the Public Employees' Retirement System. Government Code section 20965.
25.0 Bereavement Leave
Whenever an employee is compelled to be absent from duty by reason of the death, or critical illness where death appears to be imminent, of either the members of the immediate family of the employee, the employee's spouse or domestic partner, such person shall be entitled to a maximum of 24 hours absence with pay, as to each such instance of death or critical illness, up to a maximum of 48 hours per year. In instances involving extraordinary circumstances, an additional 48 hours may be granted, upon approval of the Police Chief, with the proviso that such time will be deducted from accumulated sick leave.
"Immediate family" of the employee, the employee's spouse or domestic partner shall be construed to mean: father, mother, stepparents, brother, sister, stepsiblings, wife, husband, child, stepchild, grandmother, grandfather or any relative of the employee or employee' s spouse residing in the employee' s household for two (2) or more years.
Employees who have been with the City for at least thirty (30) days before the leave commences shall receive additional leave up to three (3) days without pay, in any one (1) instance (which must be used within three (3) months from the date of death and which days do not need to be taken consecutively), for bereavement leave related to the death of an immediate family member.
Employees may use any paid vacation and accrued and available sick leave that is otherwise available to the employee for this purpose. 23
26.0 Jury Duty Leave
Employees in the unit are entitled to up to one hundred and twenty (120) hours of paid time off each calendar year for jury duty. An employee who must report to jury duty shall immediately notify the Police Chief in writing, including by email.
Employees in the unit are expected to make reasonable efforts to manage their areas of responsibility to the maximum extent possible while serving on jury duty.
This means responding to calls and emails in a timely manner and still attending other necessary meetings occurring on days in which they are on jury duty if it does not conflict with the time required in court.
27.0 Paid Administrative Leave
Employees may be granted up to 100 hours of paid administrative leave per fiscal year at the discretion of the City Manager. Paid Administrative leave does not accrue and carry over to another fiscal year.
Chapter 5- Employer Employee Relations
28.0 Probationary Period
Employees in the unit may be promoted into the unit or may be hired as new employees. For both newly hired employees and those promoted into the unit, their probationary period is one year. However, for employees on probation, cumulative leaves of absence in excess of fourteen (14) calendar days while on probation shall extend the probationary period by the length of leaves of absence in excess of 14 calendar days. Any employee who promotes into the unit who does not pass their probationary period shall have the right to be returned to a position in their previous classification in the City.
29.0 Discipline
29.1 Policy: Prior to the discharge, demotion or pay reduction for disciplinary purpose or suspension of any regular employee pursuant to provisions of the Personnel Rules, the following procedure shall be complied with:
29.2 Written Notice: Written notice of the proposed disciplinary action shall be given to the employee. Such notice shall include a statement of the reason(s) for the proposed action and the charge(s) being considered.
29.3 Employee Review: The employee shall be given an opportunity to review the documents or materials upon which the proposed disciplinary action is based, and if practicable, they shall be supplied with a copy of the documents.
29.4 Employee Response: Within five (5) working days after the employee has had the review opportunity provided above, they shall have the right to respond, orally or in writing, or both, at the employee's option, to the 24
appointing authority concerning the proposed action.
29.5 Temporary Leave with Pay: Notwithstanding the provisions of this section, the Director of Human Resources & Risk Management, Police Chief, or the City Manager may approve the temporary assignment of an employee to a status of leave with pay pending conduct or completion of such investigations or hearings as may be required to determine if disciplinary action is to be taken.
29.6 Representation: In the above procedure, the employee may be represented by a representative of the employee's choice who is not involved in the matter.
29.7 Right of Appeal:
29.7.1 Police Lieutenant and Police Captain: These employees shall, within seven (7) days, have the right of appeal to the Personnel Board of any disciplinary action indicated under Section 2.24.120 of the Laguna Beach Municipal Code, except in instances where the right of appeal is specifically prohibited by the Personnel Rules.
29.7.1.1 For discipline described as "punitive action" under the Public Safety Officers' Procedural Bill of Rights Act for which there is a right to an appeal pursuant to
Government Code section 3304(b) and 3304.5, and
which is not covered by Section 28.7.1 above, the
appeal shall be processed under the grievance
procedure in this MOU.
29.7.2 Civilian Services Administrator: Employees shall have the right of appeal to the Personnel Board within seven (7) days of any disciplinary action indicated under Section 2.24.120 of the Laguna Beach Municipal Code, except in instances where the right of appeal is specifically prohibited by the Personnel Rules.
30.0 Grievance Procedure
30.1 Matters Subject to Grievance Procedure: A grievance shall be a claim, filed by an employee on their own behalf or by the Association on behalf of a bargaining unit member contending that the City has violated or misapplied an obligation expressed and written in the Personnel Rules or this MOU.
30.2 Grievance Procedure: The employee shall have the right to discuss the matter with the Police Chief. A grievant must present/file a grievance within thirty (30) calendar days of the later of (1) the occurrence giving rising to the grievance or (2) the time within which the grievant (either the employee or the Association) knew or should have known of the 25
occurrence.
When discussing the grievance with the Police Chief, the employee shall have the right to appear with their representative who may also participate in the discussion. If filed by the Association, its chosen representative shall have the right to meet with the Chief of Police to discuss the grievance. After receiving the grievance the Chief shall review it, render their decision and comments in writing and return them to the employee or Association within ten (10) regular workdays after receiving the grievance. If the employee or the Association does not agree with the decision reached, they may present an appeal in writing to the City Manager within ten (10) regular workdays. Failure of the employee or Association to take further action within ten (10) regular workdays after receipt of the decision of the Police Chief will constitute withdrawal of the grievance.
30.3 Appeal to the City Manager: Upon receipt of an appeal, the City Manager or their representative shall discuss the grievance with the employee or Association, the representative, if any, and other appropriate persons. The City Manager may designate a fact-finding committee, an individual not in the normal line of the employee's supervision, or the City Attorney to render advice concerning the appeal. Within fifteen (15) regular working days, the City Manager shall render a formal decision, in writing, to the employee or Association. Such decision shall be considered as final.
30.4 Extension of Time Limitations: Any or all of the time limitations mentioned above with reference to filing and response may be extended by mutual agreement between the employee or Association and the City.
31.0 Layoff
31.1 Intent of Procedure: For reasons of economy or efficiency, or in the interest or mandate of the public, reductions or curtailments of City services may be required. In such an event, it may be necessary to lay off one (1) or more City employees. The following procedure is intended to give primary consideration to seniority and job performance whenever layoff of employees is necessary.
The City's decision to abolish a position is not subject to the employee's right of appeal or grievance.
31.2 Procedures:
31.2.1Abolition of a Position: When a position within the Police Department is abolished, all employees in the subject
classification shall be listed in order of the employee's length of service with the City. The department head shall choose the least senior employee to be laid off for each position abolished.
If in any case length of service should be equal, the appointing 26
authority may take job performance into consideration in determining the employee to be laid off. Employees to be laid off shall be given two (2) weeks' written notice of the action.
31.2.2 Transfer or Demotion to Avoid Layoff: Any employee who is to be laid off may request, in writing, to be transferred to a vacant position, subject to Personnel Rule 2.10, within the two (2) week notification period.
An employee who has held regular status in a lower
classification within the Police Department may request, within the two (2) week notification period, demotion to a position in said lower classification or an equivalent class in order to avoid layoff if the employee makes such a request, a list of employees as prescribed in section 31.2.4 of this section shall be prepared and subject employee shall have the employee's name placed among the other names on said list according to the employee's total length of service in said class and any higher class within the Police Department. Thereafter, the appointing authority shall choose an employee to be laid off according to the provisions of section 31.2.4 of this section.
31.2.3 Severance Pay: An employee of the City who has been employed for a minimum of two (2) years and has been laid off because of either the abolition of the employee's position or as a result of a demotion of another employee to avoid layoff will be eligible for two (2) weeks of severance pay. A regular employee who is similarly laid off and who has worked for the City for a minimum of ten (10) years will be eligible for three (3) weeks' salary upon layoff.
31.2.4 Reemployment Lists: The names of all employees who were laid off or who were demoted to avoid layoff shall be placed on a reemployment list for two (2) years. Whenever a vacancy occurs in the classes from which employees were laid off, the qualifying employees on the layoff list will be notified of the vacancy, prior to announcing an open or promotional
recruitment, and shall be offered the opportunity to apply for the position.
In such an event, the appointing authority shall consider the former employee(s) from the layoff list prior to considering other candidates. However, the appointing authority shall retain the right not to appoint said former employee(s) and may request an examination to establish a new eligibility list.
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32.0 Management Rights
The scope of representation does not include consideration by the City of changes in the merits, necessity or organization of any service activities provided by law or executive order including the following:
1. The City shall retain, whether exercised or not, solely and exclusively, all express and inherent rights and authority pursuant to law with respect to determining the level of, and the manner in which, the City's activities are conducted, managed, and administered, and it is the exclusive right of the City to establish and maintain departmental rules and procedures for the administration of its departments.
2. The City has the exclusive right and authority to schedule work as required in the manner most advantageous to the City.
3. Every incidental duty connected with operations enumerated in job descriptions is not always specifically described; nevertheless, it is intended that all such duties shall be performed by employees in the unit.
4. The City reserves the right to direct employees, including the right to hire, promote, discipline or discharge employees.
5. The City reserves the right to lay off employees at any time.
6. The City shall determine assignments and establish methods and processes by which assignments are performed.
7. The City shall determine policy affecting the on-going training and certification of employees, as applicable.
8. The City shall have the right to establish and enforce employee performance standards.
9. The City shall have the right to introduce new, improved, or different methods and techniques of operation or a change in existing methods and techniques.
10. The City shall determine the amount of supervision necessary.
11. The City shall have the authority, without prior meeting and conferring, to effect reorganizations and reallocation of work of the City, including the determination of the size and organizational structure of departments and the determination of the job classification and ranks based upon assigned duties.
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12. The City has the right, without prior meeting and conferring, to contract for matters relating to municipal operations, including contracting out bargaining unit work. The right of contracting or subcontracting is vested exclusively in the City.
13. The inherent and express rights of the City, including those herein specifically referred to that are not expressly modified or restricted by a specific provision hereof, are not in any way, directly or indirectly, subject to meeting and conferring or the Grievance Procedure herein.
33.0 The Confidentiality of Management Discussions and Working through the Chain of Command
Employees in this bargaining unit are public safety managers in the Police Department. As such, these employees have access to confidential information in their respective departments which must be maintained with confidentiality and not used for labor relations purposes. If information is made or becomes public, drafts of documents, recording details of meetings, or other work product which were prepared by the Department, but which have not been made public cannot be used for labor relations purposes. The confidentiality of such documents shall be maintained.
Employees in this unit directly report to the Police Chief (Police Captain) or to the Police Captain (Police Lieutenant), or to either the Police Captain or Police Chief (Civilian Services Administrator). The parties agree that maintenance of the reporting relationships is critical to effectively operating thePolice Department while maintaining a labor relations relationship between the City and the Association.
34.0 Release Time
The Association (with its two bargaining units representing Fire and Police) may have up to two (2) on-duty representatives on release time and one (1) off-duty representative at the collective bargaining table for labor negotiations. In addition, the Association is entitled to release time for the purpose of processing a grievance. No more than one member may be released for a meeting for such a purpose. Additional time needed for planning for negotiations or any other labor relations purpose must take place during off duty hours.
35.0 Savings Clause
If any section, subsection, subdivision, sentence, clause, or phrase of this MOU is for any reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portion of this MOU. 29
36.0 Full and Complete Understanding
This MOU represents the full and complete understanding between the parties related to the subject matter set forth herein and all preliminary negotiations of whatever kind or nature are merged herein
The parties hereto have caused this MOU to be executed .
CITY OF LAGUNA BEACH LAGUNA BEACH POLICE AND FIRE
MANAGEMENT ASSOCIATION – Police Unit
Dave Kiff
City Manager
Cornelius Ashton
Police Lieutenant
Michelle Bannigan
Director of Administrative Services
Michael McGill
Labor Negotiator
Peter Brown
Labor Negotiator
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Exhibit A
City of Laguna Beach Salary Schedule
Police and Fire Management Association (PFMA) - Police Unit FY 2026-27
SALARY RANGE
Effective the Pay Period that includes
POSITION TITLE July 1, 2026
Police Captain $15,776 $19.721
Police Lieutenant 14,481 18,102
Civilian Services Administrator 11,096 16,639
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