Agenda packet — Laguna Woods City Council, September 17, 2025 (part 2 of 2)

APPENDIX
1 12of15
City Saratoga Santa Clara 0.004%

0.0034161%
City Sunnyvale Santa Clara 0.053%

0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957%

0.8135396%
City Capitola Santa Cruz 0.020%

0.0168191%
City Santa Cruz Santa Cruz 0.143%

0.1180348%
City Scotts Valley Santa Cruz 0.015%

0.0126525%
City Watsonville Santa Cruz 0.063%

0.0520136%
County Shasta County Shasta 1.095% 1.339%

1.1380191%
City Anderson Shasta 0.024%0.0198896%
City Redding Shasta 0.284%

0.2334841%
City Shasta Lake Shasta 0.004%0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279%

0.2373393%
County Solano County Solano 0.760%

0.6260795%
City Benicia Solano 0.031%0.0253903%
City Dixon Solano 0.016%

0.0130849%
City Fairfield Solano 0.109%0.0897317%
City Suisun City Solano 0.021%

0.0176183%
City Vacaville Solano 0.119%0.0976497%
City Vallejo Solano 0.167%

0.1373644%
County Sonoma County Sonoma 1.218% 1.490%1.2661290%
City Healdsburg Sonoma 0.032%

0.0266929%
City Petaluma Sonoma 0.081%

0.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County
Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
APPENDIX 1
13of15
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Sun Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State BackStop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Sun Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Sun Settlement Agreement and CA Sun Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Sun Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Sun Settlement Agreement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Sun Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Sun Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Zydus Settlement

1. Introduction
Pursuant to the Zydus Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Zydus Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Zydus Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Zydus Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Zydus Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Zydus Settlement Agreement, acceptance of this CA Zydus Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Zydus Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
2 3. General Terms
This agreement is subject to the requirements of the Zydus Settlement Agreement, as well as applicable law, and the Zydus Settlement Agreement governs over any inconsistent provision of this CA Zydus Allocation Agreement. Terms used in this CA Zydus Allocation Agreement have the same meaning as in the Zydus Settlement Agreement unless otherwise defined herein.

Pursuant to Section VI(D)(1) of the Zydus Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Zydus Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Section X of the Zydus Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Zydus Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Zydus Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
3 Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Zydus Settlement Agreement. c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Zydus Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State.

Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Zydus Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Zydus Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
5 Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Zydus Settlement Agreement or this CA Zydus Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Zydus Settlement Agreement or this CA Zydus Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Zydus Settlement Agreement and this CA Zydus Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation.

Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Zydus Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Zydus Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI(B)(1) of the Zydus Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Zydus Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Zydus Settlement Agreement and this CA Zydus Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Zydus Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Zydus. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Zydus Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Zydus Settlement Agreement, this CA Zydus Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Zydus Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Zydus Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
9 The undersigned, Laguna Woods city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Zydus Settlement is a requirement to be an Initial Participating Subdivision in the Zydus Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Zydus Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Zydus Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
APPENDIX 1
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City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
APPENDIX 1
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City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B

APPENDIX
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B

APPENDIX
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles

0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B

APPENDIX
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County
Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County
Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa CountyMariposa 0.084% 0.103% 0.0876131% County Mendocino County
Mendocino 0.439% 0.536% 0.4558394%
City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674%

0.5724262%
City Atwater Merced 0.024%

0.0195846%
City Livingston Merced 0.006%

0.0045873%
City Los Banos Merced 0.020%

0.0165142%
City Merced Merced 0.061%

0.0500762%
County Modoc County Modoc 0.065% 0.080%

0.0678250%
County Mono County Mono 0.023% 0.029%

0.0242606%
County Monterey County Monterey 0.908% 1.111%

0.9437083%
City Greenfield Monterey 0.006%

0.0050552%
City King City Monterey 0.005%

0.0037355%
City Marina Monterey 0.017%

0.0144098%
City Monterey Monterey 0.041%

0.0336540%
City Pacific Grove Monterey 0.009%

0.0074842%
City Salinas Monterey 0.094%

0.0776576%
City Seaside Monterey 0.023%

0.0191772%
City Soledad Monterey 0.007%

0.0060870%
County Napa County Napa 0.288% 0.352%0.2994325%
City American Canyon Napa 0.017%

0.0136869%
City Napa Napa 0.078%0.0642783%
County Nevada County Nevada 0.441% 0.539%

0.4579827%
City Grass Valley Nevada 0.024%

0.0197805%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B

APPENDIX
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City Truckee Nevada 0.003%0.0023843%
County Orange County Orange 4.364% 5.339%

4.5363576%
City Aliso Viejo Orange 0.014%0.0113841%
City Anaheim Orange 0.554% 0.678%

0.5759282%
City Brea Orange 0.086%0.0708897%
City Buena Park Orange 0.087%

0.0714352%
City Costa Mesa Orange 0.124% 0.152%0.1288366%
City Cypress Orange 0.033%

0.0271937%
City Dana Point Orange 0.001%

0.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055%

0.0455980%
City Fullerton Orange 0.137% 0.168%

0.1425744%
City Garden Grove Orange 0.213%

0.1752482%
City Huntington Beach Orange 0.247% 0.302%

0.2568420%
City Irvine Orange 0.139% 0.170%

0.1442350%
City Laguna Beach Orange 0.047% 0.058%

0.0493043%
City Laguna Hills Orange 0.014%

0.0115457%
City Laguna Niguel Orange 0.001%

0.0007071%
City Laguna Woods Orange 0.001%

0.0006546%
City La Habra Orange 0.060% 0.073%

0.0621049%
City Lake Forest Orange 0.012%

0.0101249%
City La Palma Orange 0.012%

0.0095439%
City Los Alamitos Orange 0.008%

0.0069190%
City Mission Viejo Orange 0.014%

0.0117560%
City Newport Beach Orange 0.179%

0.1470134%
City Orange Orange 0.150%

0.1231320%
City Placentia Orange 0.029% 0.035%0.0298912%
City Rancho Santa Margarita Orange 0.001%

0.0006296%
City San Clemente Orange 0.008% 0.010%0.0086083%
City San Juan Capistrano Orange 0.008%

0.0065510%
City Santa Ana Orange 0.502% 0.614%

0.5213866%
City Seal Beach Orange 0.020%0.0165891%
City Stanton Orange 0.035%

0.0291955%
City Tustin Orange 0.073%0.0600341%
City Westminster Orange 0.104% 0.127%

0.1082721%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B

APPENDIX
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City Yorba Linda Orange 0.044%0.0362223%
County Placer County Placer 1.045% 1.278%

1.0861002%
City Auburn Placer 0.017%0.0141114%
City Lincoln Placer 0.031%

0.0255599%
City Rocklin Placer 0.076%

0.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County
Plumas 0.205% 0.251% 0.2128729%
County Riverside County
Riverside 4.534% 5.547% 4.7128296%
City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
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County Sacramento County Sacramento 3.797% 4.645% 3.9465887% Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
APPENDIX 1
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
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County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B

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City Saratoga Santa Clara 0.004%

0.0034161%
City Sunnyvale Santa Clara 0.053%

0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957%

0.8135396%
City Capitola Santa Cruz 0.020%

0.0168191%
City Santa Cruz Santa Cruz 0.143%

0.1180348%
City Scotts Valley Santa Cruz 0.015%

0.0126525%
City Watsonville Santa Cruz 0.063%

0.0520136%
County Shasta County Shasta 1.095% 1.339%

1.1380191%
City Anderson Shasta 0.024%0.0198896%
City Redding Shasta 0.284%

0.2334841%
City Shasta Lake Shasta 0.004%0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279%

0.2373393%
County Solano County Solano 0.760%

0.6260795%
City Benicia Solano 0.031%0.0253903%
City Dixon Solano 0.016%

0.0130849%
City Fairfield Solano 0.109%0.0897317%
City Suisun City Solano 0.021%

0.0176183%
City Vacaville Solano 0.119%0.0976497%
City Vallejo Solano 0.167%

0.1373644%
County Sonoma County Sonoma 1.218% 1.490%1.2661290%
City Healdsburg Sonoma 0.032%

0.0266929%
City Petaluma Sonoma 0.081%

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Zydus Settlement Agreement and CA Zydus Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Zydus Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Zydus Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Zydus Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Zydus Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 0481D509-3DAA-49C2-BBBC-75E1297183BE ITEM 7.6 - Attachment B
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7.7 PAVEMENT MANAGEMENT PLAN PROGRAM
(WESTBOUND EL TORO ROAD BETWEEN CALLE

CORTA AND CITY LIMITS)
(NO WRITTEN REPORT – REFER TO CONSENT

CALENDAR SUMMARY)
For additional information on this item,
please refer to Item 7.0 (Consent Calendar Summary).

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7.8 REJECTION OF CLAIM AGAINST THE CITY
(NO WRITTEN REPORT – REFER TO CONSENT

CALENDAR SUMMARY)
For additional information on this item,
please refer to Item 7.0 (Consent Calendar Summary).

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9.1 PEDESTRIAN, BICYCLE, AND SKATEBOARD

REGULATIONS
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ITEM 9.1
CC  09-17-2025 RM ITEM 9.1 – AR Page 1 of 4
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: September 17, 2025 Regular Meeting
SUBJECT: Pedestrian, Bicycle, and Skateboard Regulations Recommendation
Approve second reading and adopt an ordinance – read by title with further reading waived – titled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAGUNA WOODS, CALIFORNIA, AMENDING CHAPTER 8.12 OF

THE LAGUNA WOODS MUNICIPAL CODE PERTAINING TO

PEDESTRIAN, BICYCLE, AND SKATEBOARD REGULATIONS
(INCLUDING, BUT NOT LIMITED TO, REGULATIONS PERTAINING

TO PEDESTRIAN MOVEMENTS AND BICYCLES AND OTHER

CONVEYANCES PROPELLED BY HUMAN POWER SUCH AS

SKATEBOARDS AND ROLLER SKATES, AS WELL AS ELECTRIC

BICYCLES), AND DETERMINING AND CERTIFYING THAT THE

ORDINANCE IS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Background
The City’s existing pedestrian, bicycle, and skateboard ordinance is codified in Laguna Woods Municipal Code Chapter 8.12. It was adopted after incorporation and is largely based on the County of Orange’s then-current Code of Ordinances.

An “electric bicycle” is defined by California Vehicle Code Section 312.5 as “a bicycle equipped with fully operable pedals and an electric motor that does not ITEM 9.1
ITEM 9.1 – AR Page 2 of 4 CC  09-17-2025 RM
exceed 750 watts of power.”
California Vehicle Code 21113 states that public agencies “may adopt rules or regulations to restrict, or specify the conditions for, the use of bicycles, motorized bicycles, electric bicycles, skateboards, electrically motorized boards, and roller skates on public property under the jurisdiction of that agency.” On July 17, 2024, the City Council approved a response to the 2023-2024 Orange County Grand Jury report, “E-Bikes Friend or Foe.” The response stated that the City planned to adopt specific policies that define the rules of the road for use of electric bicycles in Laguna Woods.

At the regular meeting on August 20, 2025, the City Council conducted a public hearing and voted unanimously to approve the introduction and first reading of the ordinance included with this agenda report as Attachment A.

Discussion
Today’s meeting is an opportunity for City Council action, as well as public input, on proposed modifications of Chapter 8.12 of Title 8 (Traffic Control) of the Laguna Woods Municipal Code (Attachment A). Staff recommends that the City Council conduct a public hearing and initiate the adoption process for the proposed ordinance in order to promote public health, safety, and welfare by regulating various movements and the use of various modes of transportation on public streets and other public property. The proposed ordinance is further intended to clarify and enhance ease of use and application of Title 8 of the Laguna Woods Municipal Code, both for internal parties and the public.

The proposed ordinance would add regulations regarding the use of electric bicycles on public streets and other public property (it would not apply to private streets or private property – e.g., property inside Laguna Woods Village). The proposed ordinance would also amend regulations pertaining to pedestrian movements and bicycles and other conveyances propelled by human power including, but not limited to, skateboards and roller skates.

Significant proposed modifications include, but are not limited to:
• Extension of the same five mile per hour speed limit that currently applies to bicycles being used on public sidewalks to electric bicycles being used on ITEM 9.1
CC  09-17-2025 RM ITEM 9.1 – AR Page 3 of 4
public sidewalks. The California Vehicle Code establishes other speed limits for the use of electric bicycles.
• Prohibition of the use of cellular telephones and other handheld electronic devices while riding a bicycle or electric bicycle, unless such devices are being used in a hands-free manner.
• Prohibition of bicycles or electric bicycles being left or otherwise placed on public streets or public rights-of-way in a manner that obstructs or impedes pedestrian or vehicular traffic.
• Prohibition of the unsafe use of electric bicycles, which may include any act in violation of the California Vehicle Code (e.g., speeding or riding without a helmet when required) or the following:
o Intentionally lifting one or more wheels into the air. o Riding with or near any other electric bicycle more than two abreast. o Riding without due caution for pedestrians or vehicles, including failing to yield when required.
o Riding against the flow of traffic in a bicycle lane. o Intentionally swerving or riding around stopped or slowed traffic. o Carrying passengers when the electric bicycle is not designed for carrying passengers.
o Standing on the seat of the electric bicycle while the electric vehicle is in motion.
o Failing to obey any sign posted by the City.
o Failing to obey any traffic signal or other traffic control device. • Deletion of language that allowed the City Manager to unilaterally prohibit bicycle use on certain portions of sidewalk. The City Council would continue to be able to approve such prohibitions.

ITEM 9.1
ITEM 9.1 – AR Page 4 of 4 CC  09-17-2025 RM
If the recommended action is taken at today’s meeting, the ordinance would take effect in 30 calendar days.

Environmental Review
The City Council is asked to find that the proposed ordinance is not subject to the California Environmental Quality Act of 1970, Public Resources Code Section 21000, et. seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively “CEQA”) pursuant to sections 15060(c)(2) (the activities will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activities are not a project as defined in section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3. CEQA Guidelines Section 15378(b)(2) excludes “[c]ontinuing administrative. . . activities, such as . . . general policy and procedure making” and Section 15378(b)(5) excludes “[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment” from its definition of “project.” The City Council is also asked to find that, even if the proposed ordinance were subject to CEQA, it would be exempt based on CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Fiscal Impact
Sufficient funds to support this project are included in the City’s budget.

Documents Available for Review
Related documents – including the proposed ordinance and the Laguna Woods Municipal Code – are available for public review at or from City Hall during normal working hours. The Laguna Woods Municipal Code is also available for review at www.cityoflagunawoods.org.

Attachment: A – Proposed Ordinance
Exhibit A – Proposed Code Amendments
ITEM 9.1 – Attachment A
O 25-XX 1 XX-XX-2025
ORDINANCE NO. 25-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAGUNA WOODS, CALIFORNIA, AMENDING CHAPTER 8.12 OF

THE LAGUNA WOODS MUNICIPAL CODE PERTAINING TO

PEDESTRIAN, BICYCLE, AND SKATEBOARD REGULATIONS
(INCLUDING, BUT NOT LIMITED TO, REGULATIONS PERTAINING

TO PEDESTRIAN MOVEMENTS AND BICYCLES AND OTHER

CONVEYANCES PROPELLED BY HUMAN POWER SUCH AS

SKATEBOARDS AND ROLLER SKATES, AS WELL AS ELECTRIC

BICYCLES), AND DETERMINING AND CERTIFYING THAT THE

ORDINANCE IS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, staff has recommended amending Chapter 8.12 of Title 8 (Traffic Control) of the Laguna Woods Municipal Code (“Code Amendments”) to promote public health, safety, and welfare by regulating various movements and the use of various modes of transportation on public streets and other public property; and to clarify and enhance ease of use and application of Title 8 of the Laguna Woods Municipal Code, both for internal parties and the public; and WHEREAS, on August 20, 2025, the City Council held a duly noticed public hearing on this Ordinance at which it considered all of the information, evidence, and testimony presented, both written and oral.

THE CITY COUNCIL OF THE CITY OF LAGUNA WOODS,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council hereby finds and determines that (i) each of the recitals to this Ordinance are true and correct, and are adopted herein as findings; (ii) the Code Amendments comply with all applicable requirements of State law; (iii) the Code Amendments will not adversely affect the health, safety, or welfare of the residents within the community; (iv) the Code Amendments are in the public interest of the City of Laguna Woods; and, (v) the Code Amendments are consistent with the Laguna Woods General Plan and its various elements.

SECTION 2. After reviewing the entire project record, the City Council hereby determines and certifies that this Ordinance is not subject to the California Environmental Quality Act of 1970, Public Resources Code Section 21000, et. seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of ITEM 9.1 – Attachment A
O 25-XX 2 XX-XX-2025
the California Code of Regulations (collectively “CEQA”) pursuant to sections 15060(c)(2) (the activities will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activities are not a project as defined in section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3. CEQA Guidelines Section 15378(b)(2) excludes “[c]ontinuing administrative. . . activities, such as . . . general policy and procedure making” and Section 15378(b)(5) excludes “[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment” from its definition of “project.”
After reviewing the entire project record, the City Council also hereby determines and certifies that that, even if this Ordinance were subject to CEQA, it would be exempt based on CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

SECTION 3. Chapter 8.12 of Title 8 (Traffic Control) of the Laguna Woods Municipal Code is hereby amended to read as set forth in Exhibit A, attached to this Ordinance and incorporated herein by this reference.

SECTION 4. This Ordinance shall take effect and be in full force and operation thirty (30) calendar days after adoption.

SECTION 5. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase added by this Ordinance, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity of effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one or more subsections, subdivisions, paragraphs sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

SECTION 6. The Mayor shall sign this Ordinance.

SECTION 7. The City Clerk shall certify to the passage of this Ordinance and shall cause this Ordinance to be published or posted as required by law.

SECTION 8. All of the above-referenced documents and information have been and are on file with the City Clerk of the City.

ITEM 9.1 – Attachment A
O 25-XX 3 XX-XX-2025
PASSED, APPROVED AND ADOPTED this XX day of XX 2025.
_____________________________________
SHARI L. HORNE, Mayor
ATTEST:
_____________________________________
YOLIE TRIPPY, CMC, City Clerk
APPROVED AS TO FORM:
_____________________________________
ALISHA PATTERSON, City Attorney

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Ordinance No. 25-XX was duly introduced and placed upon its first reading at a regular meeting of the City Council on the XX day of XX 2025, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the XX day of XX 2025 by the following vote to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_______________________________________
YOLIE TRIPPY, CMC, City Clerk
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ITEM 9.1 – Exhibit A to Attachment A
-1-

EXHIBIT A

CODE AMENDMENTS
Chapter 8.12 (“Pedestrian, Bicycle, and Skateboard Regulations”) of Title 8 (“Traffic Control”) of the Laguna Woods Municipal Code is amended to read as follows (additions shown with underlining, deletions shown with strikethrough):

CHAPTER 8.12. - PEDESTRIAN, BICYCLE, AND SKATEBOARD
REGULATIONS[4]
Footnotes:
--- (4) ---
State Law reference— Pedestrians, Vehicle Code § 21940 et seq.

Sec. 8.12.010. - Bicycles operation.
(a) Direction of travel. Persons riding or operating a bicycle on a bicycle trail or path may proceed in either direction except on those trails or paths designated for one-way traffic by appropriate markings or signs defined by the direction of adjacent vehicular traffic.
(b) Walking bicycles. Bicycles may be walked subject to all provisions of law applicable to pedestrians.
(a) Applicability. This section applies to the use of “bicycles,” as that term is defined in the California Vehicle Code, as may change from time to time, on public streets and public right-of-way. This section does not apply to private streets or other private property.
(b) Use on sidewalks.
(1) Bicycles may be ridden on sidewalks at a speed not to exceed five miles per hour. When a bicycle is ridden, it must be ridden subject to all provisions of applicable law.
(2) Whenever any person is riding a bicycle on a sidewalk, such person shall yield to any and all pedestrians. A person riding a bicycle upon entering a roadway or driveway from a sidewalk shall yield to all vehicular traffic.

ITEM 9.1 – Exhibit A to Attachment A
-2-
(3) Bicycles may be walked on sidewalks. When a bicycle is walked, it must be walked subject to all provisions of law applicable to pedestrians.
(c) Obstruction prohibited. No person shall leave or otherwise place a bicycle that is not being actively ridden in such a way as to obstruct or impede pedestrian or vehicular traffic.
(d) Handheld electronic device use when riding prohibited. No person shall ride a bicycle while using a cellular telephone or other handheld electronic device unless such device is specifically designed and configured to allow hands-free operation, and it is used in that manner while riding.

Sec. 8.12.020. - Bicycles on sidewalks.
(a) Riding on sidewalks. Bicycles may be ridden on all sidewalks at a speed not to exceed five miles per hour except upon sidewalks within a business district, upon sidewalks adjacent to any public school building when school is in session, recreation center when in use, church during services, over any pedestrian overcrossing or other sidewalk where prohibited by posted signs. (b) Director to designate prohibitions. The City Manager or designee may designate and declare certain portions of sidewalk to be prohibited to bicycle use.
(c) Director to post prohibitions. The City Manager or designee is authorized to erect and maintain signs adjacent to sidewalks designating limits of bicycle prohibitions.
(d) Yielding right-of-way. Whenever any person is riding a bicycle upon a sidewalk, such person shall yield right-of-way to any and all pedestrians. A person riding a bicycle upon entering a roadway or driveway from a sidewalk shall yield to all traffic.

Sec. 8.12.020. - Electric bicycles.
(a) Applicability. This section applies to the use of “electric bicycles,” as that term is defined in the California Vehicle Code, as may change from time to time, on public streets and public right-of-way. This section does not apply to private streets or other private property.

ITEM 9.1 – Exhibit A to Attachment A
-3-
(b) Use on sidewalks.
(1) Electric bicycles may be ridden on all sidewalks at a speed not to exceed five miles per hour. When an electric bicycle is ridden, it must be ridden subject to all provisions of applicable law.
(2) Whenever any person is riding an electric bicycle on a sidewalk, such person shall yield to any and all pedestrians. A person riding an electric bicycle upon entering a roadway or driveway from a sidewalk shall yield to all vehicular traffic.
(3) Electric bicycles may be walked on sidewalks. When an electric bicycle is walked, it must be walked subject to all provisions of law applicable to pedestrians.
(c) Speed limits on public streets. No person shall ride an electric bicycle assisted by a pedal and/or throttle assist at a speed in excess of applicable limits set forth in the California Vehicle Code.
(d) Unsafe riding prohibited. No person shall ride or operate an electric bicycle in an unsafe manner. For the purpose of this subsection, “unsafe manner” means any act or acts in violation of the Code, California Vehicle Code, or other applicable law. “Unsafe manner” also means riding or operating an electric bicycle in such a way as to constitute a danger to any person on the electric bicycle, any other person, or any animal. (1) Examples of riding or operating an electric bicycle in an unsafe manner may include, but are not limited to, the following:
a. Intentionally lifting one or more wheels into the air. It is not a violation of this subsection if one or more wheels lose contact with the ground briefly due to the condition of the road surface or other circumstances beyond the control of the rider. b. Riding with or near any other electric bicycle more than two abreast.
c. Riding without due caution for pedestrians or vehicles, including failing to yield when required.

ITEM 9.1 – Exhibit A to Attachment A
-4-
d. Riding against the flow of traffic in a bicycle lane. e. Intentionally swerving or riding around stopped or slowed traffic.
f. Carrying passengers when the electric bicycle is not designed for carrying passengers.
g. Standing on the seat of the electric bicycle while the electric bicycle is in motion.
h. Failing to obey any sign posted by the City.
i. Failing to obey any traffic signal or other traffic control device.
(e) Obstruction prohibited. No person shall leave or otherwise place an electric bicycle that is not being actively ridden in such a way as to obstruct or impede pedestrian or vehicular traffic.
(f) Handheld electronic device use when riding prohibited. No person shall ride an electric bicycle while using a cellular telephone or other handheld electronic device unless such device is specifically designed and configured to allow hands-free operation, and it is used in that manner while riding.

Sec. 8.12.030. - Skateboards, roller skates, and similar pedestrian traffic.
(a) No person shall ride a skateboard, roller skates, or other conveyance propelled by human power other than a bicycle or electric bicycle or cause or permit the same to roll or coast on the roadway of any highway a public street.
(b) The provisions of Subsection (a) shall not apply to cul-de-sacs where the length of the cul-de-sac is 500 feet or less.
(b) Obstruction prohibited. No person shall leave a skateboard, roller skates, or other conveyance propelled by human power other than a bicycle or electric bicycle laying on its side or in such a way as to obstruct or impede ITEM 9.1 – Exhibit A to Attachment A
-5-
pedestrian or vehicular traffic.

Sec. 8.12.040. - Pedestrian movements at intersections.

The Department City Manager is hereby authorized to place and maintain signs or markings to prohibit or to restrict pedestrian crossings at certain legs of intersections.

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9.2 EMPLOYEE POSITIONS, COMPENSATION,

AND BENEFITS
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ITEM 9.2
CC  09-17-2025 RM ITEM 9.2 – AR Page 1 of 3
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: September 17, 2025 Regular Meeting
SUBJECT: Employee Positions, Compensation, and Benefits Recommendation

1. Approve a job classification for the following City employee position: Code Enforcement Officer.

AND

2. Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, REPEALING RESOLUTION NO. 25-27, AND

ESTABLISHING A COMPENSATION SCHEDULE AND BENEFITS

FOR CITY EMPLOYEES, INCLUDING THE CITY MANAGER AND

OTHER LOCAL AGENCY EXECUTIVES AS DEFINED IN
CALIFORNIA GOVERNMENT CODE SECTION 3511.1
Background
The City Manager is responsible for hiring and supervising all City employees, subject to the City Council’s approval of job classifications, authorization of positions, and establishment of a compensation schedule and benefits.

The City Council most recently updated its resolution establishing a compensation schedule and benefits for employees on August 20, 2025.

ITEM 9.2
ITEM 9.2 – AR Page 2 of 3 CC  09-17-2025 RM
Discussion
Today’s meeting is an opportunity for City Council action, as well as public input, on the following proposals:

Job Classifications –
• Approval of job classifications for one new employee position. The Fiscal Years 2025-27 Budget & Work Plan includes funding for one full-time Code Enforcement Officer. The proposed job classification (Attachment A) would describe the Code Enforcement Officer position.

Compensation –
• Establishment of new compensation ranges for one new employee position.

Compensation ranges establish minimum and maximum rates of pay for each job classification. Once hired, movement within compensation ranges is based on merit and subject to budgetary constraints.

NON-EXEMPT POSITIONS
Position Compensation Range (hourly)
Code Enforcement Officer Existing: N/A
Proposed: $34.95-$48.92
Benefits –
• Correction to terms of the educational assistance program. When the City Council initially approved the educational assistance program on May 21, 2025, the intent was for eligible employees to be able to receive educational assistance beginning on their 183rd calendar day of employment with the City. An inadvertent error in subsequently adopted resolutions changed that date of availability from the 183rd calendar day to the 366th calendar day.

The proposed resolution would correct that inadvertent error and identify the date of availability as the 183rd calendar day.

Fiscal Impact
The Fiscal Years 2025-27 Budget & Work Plan includes sufficient funds to support the proposed employee positions, compensation, and benefits without ITEM 9.2
CC  09-17-2025 RM ITEM 9.2 – AR Page 3 of 3
amendment. No new or increased appropriations are sought as part of this item.

Attachments: A – Proposed Job Classification – Code Enforcement Officer B – Proposed Resolution – Compensation and Benefits (clean) C – Proposed Resolution – Compensation and Benefits (redline) This page is intentionally blank.

ITEM 9.2 – Attachment A
Code Enforcement Officer Job Classification – Approved: XX/XX/2025 – Page 1 of 6

CITY OF LAGUNA WOODS

JOB CLASSIFICATION
JOB TITLE: CODE ENFORCEMENT OFFICER
STATUS: NON-EXEMPT AND AT-WILL
DEFINITION:

Under general supervision, Code Enforcement Officers identify, investigate, and take enforcement action related to violations of the Laguna Woods Municipal Code and state laws, regulatory directives, and permits with which the City is required to comply. Code Enforcement Officers also inspect and investigate conditions related to the maintenance of City property. Code Enforcement Officers also perform administrative and clericalservices related to the operations and activities of the Planning Division of the Planning & Environmental Services Department (“Division”).

SUPERVISION RECEIVED:

Employees receive specific direction for new, difficult, or unusual assignments, and are expected to demonstrate independence and exercise initiative in carrying out routine or recurring assignments consistent with prior direction received. Work on new, difficult, or unusual assignments is typically reviewed while in process, whereas work on routine or recurring assignments is typically reviewed upon completion to ensure it is technically accurate and conforms to defined procedural limits.

ESSENTIAL DUTIES:

The duties assigned include, but are not limited to, all or a variety of, the following:
• Perform inspections/investigations to enforce the Laguna Woods Municipal Code (including referenced codes), both on a proactive and reactive basis. • Perform inspections/investigations to enforce state laws, regulatory directives, and permits with which the City is required to comply (including California Senate Bill 1383 (Lara, Chapter 395, Statutes of 2016) and regulations, and National Pollutant Discharge Elimination System permits), both on a proactive and reactive basis.

ITEM 9.2 – Attachment A
Code Enforcement Officer Job Classification – Approved: XX/XX/2025 – Page 2 of 6 • Perform inspections/investigations related to the maintenance of City property, including inspections of streetlights and traffic signals to confirm lamp operability and identify deterioration, damage, and vandalism, both on a proactive and reactive basis. Subsequently, coordinate with City departments responsible for making any necessary repairs and adjustments.
• Take enforcement action related to inspection/investigation findings, including issuing stop work orders, notices of violation, and administrative citations. Issuing administrative citations may also include assessing civil fines. • Refer cases to the El Toro Water District, Orange County Fire Authority, Orange County Health Care Agency, and other special districts, joint powers authorities, and governmental agencies, as applicable. Subsequently, coordinate with entities to which referrals have been made, as necessary.
• Provide declarations and testimony for civil and criminal legal proceedings related to violations of the Laguna Woods Municipal Code.
• Keep records of inspections/investigations performed, enforcement actions taken, and referrals made to other entities.
• Assist property owners, occupants, contractors, and others in understanding inspection/investigation findings and enforcement actions. • Schedule inspections and provide follow-up communications related to the same, including confirmation, reminder, and anticipated arrival notices. • Conduct outreach and educate property owners, occupants, contractors, and others in complying with the Laguna Woods Municipal Code, including providing notice of upcoming deadlines, requirements, and changes in requirements. • Coordinate with legal counsel on enforcement matters and legal proceedings related to assigned programs, projects, and services.
• Remove unpermitted temporary signs and other items from City property. • Create, scan, file, and maintain physical and electronic records. • Perform administrative, clerical, and professional services to support or relieve other City employees or meet Division demands.
• Assist with special events hosted, or participated in, by the City, including by interacting with members of the public (e.g., at a City table or booth) and moving, arranging, and configuring tables, chairs, and other equipment, as well as food, drinks, decorations, displays, waste, and other items, materials, and supplies. • Provide support and relief coverage for City and Division employees, when necessary.

ITEM 9.2 – Attachment A
Code Enforcement Officer Job Classification – Approved: XX/XX/2025 – Page 3 of 6 • Perform other related duties as assigned.

MINIMUM QUALIFICATIONS:

Knowledge of:
• Modern office procedures, methods, and equipment, including computers. • Responsive customer service practices, including active listening. • Standards, laws, rules, and regulations, as well as operational and activity characteristics, applicable to the assigned programs, projects, and services. • Principles and techniques of record keeping and filing.

Ability to:
• Perform the essential duties described in this job classification in a professional, timely, and accurate manner with the referenced level and degree of supervision. • Alphabetize, compare, count, differentiate, measure, assemble, sort, copy, record, classify, compute, tabulate, categorize, and transcribe data and information. • Communicate effectively and concisely, including the ability to inform, educate, and persuade persons with diverse backgrounds.
• Communicate in writing effectively and concisely, including with use of proper spelling, grammar, punctuation, and command of the English language. • Establish and maintain effective and collaborative professional relationships with internal and external parties.
• Demonstrate an awareness and appreciation of local cultural diversity. • Maintain confidentiality and discretion when necessary or directed. • Provide responsive and courteous assistance to members of the public. • Maintain professional composure at all times, including when dealing with upset, hostile, and difficult interpersonal interactions.
• Maintain effective organization of multiple activities and assignments while working independently in a field environment with frequent interruptions. • Understand, analyze, interpret, and apply data and information using established criteria, in order to determine consequences and identify and select alternatives.

ITEM 9.2 – Attachment A
Code Enforcement Officer Job Classification – Approved: XX/XX/2025 – Page 4 of 6 • Understand, analyze, interpret, and apply the Laguna Woods Municipal Code and other standards, laws, rules, regulations, and policies to assigned duties. • Understand, analyze, interpret, and apply ordinances, resolutions, policies, laws, procedures, standards, and practices to complex and variable situations. • Understand, analyze, interpret, and apply design and descriptive information, including plans, maps, property records, statistics, charts, graphs, and tables. • Understand, calculate, and interpret percentages, fractions, ratios, statistics, and spatial relationships, including areas, square footages, and dimensions.

Education and Experience:

Any combination of education and experience that provides the knowledge, skills, and abilities necessary for this position is qualifying. A typical way of obtaining the required qualifications is to possess a high school diploma (or equivalent) and one year of full-time work experience involving heavy public contact or work in a law enforcement, fire, or other public safety setting. College-level coursework in public administration, criminal justice, or subject relevant to the assignment is highly desirable, as is prior experience supporting programs, projects, or services for a municipal or other government agency.

Licenses/Certifications:

Must possess and maintain a valid Class C California Driver’s License and must qualify for and maintain insurability under the City’s vehicle insurance policies, as may change from time to time. This position involves the regular performance of duties and travel that require operation of a personal vehicle.

Must possess and maintain valid first aid (adult, child, and infant), cardiopulmonary resuscitation (“CPR”), and automated external defibrillator (“AED”) certification.

Employees who do not possess certification prior to their date of hire must obtain certification within six months of their date of hire.

The following certifications, and similar certifications, are highly desirable: Property Maintenance and Housing Inspector certification from the International Code Council (“ICC”), Zoning Inspector certification from the ICC, Certified Code Enforcement Officer certification from the California Association of Code Enforcement Officers, and Certified Stormwater Inspector from the National Stormwater Center.

Completion of PC 832 arrest training is highly desirable.

PHYSICAL DEMANDS AND ENVIRONMENTAL SETTING:

While performing the duties of this class, employees are frequently required to sit, stand, walk, talk, and hear; use hands to handle, manipulate, feel, move and operate equipment, tools, and controls; and, use hands and arms to reach. Specific vision abilities required include close, distance, peripheral, and color vision, depth perception, and the ability to ITEM 9.2 – Attachment A
Code Enforcement Officer Job Classification – Approved: XX/XX/2025 – Page 5 of 6 adjust focus. Specific hearing abilities required include hearing in the normal audio range with or without correction. While some activities are performed sitting in a sedentary manner at a desk, and sitting or standing at a counter, employees are most frequently required to conduct inspections/investigations and perform other activities that require exertion of physical effort, involving a combination of standing, walking, climbing, balancing, stooping, kneeling, crouching, and crawling as well as carrying, lifting, pushing, and pulling objects up to 30 pounds. Use of ladders and the performance of activities in attics, crawlspaces, suspended structures, and demolished and partially constructed structures (e.g., active and inactive construction sites and structures damaged by fires and floods), as well as on roofs, scaffolding, and temporary construction structures, is required.

The safety of each construction site and structure in which activities are performed is considered unknown at the time of initial entry and at all times thereafter. The surfaces upon which activities are performed may be in motion, rough, hot, slippery, wet, sloped, and uneven.

While some of the duties of this class are performed in an office setting with low to moderate noise and regular interruption, employees are regularly required to travel and work in other settings (e.g., meetings, events, and inspections/investigations), including in outside weather with exposure to rain, humidity, heat, cold, and sunlight. Employees frequently experience high levels of noise and vibration, as well as exposure to odors, fumes, dust, smoke, hazardous substances, and other irritants that can cause discomfort and injury, as well as dogs, cats, insects, rodents, and other animals and vermin. Employees may also come into contact with hazardous traffic conditions.

Work schedules and hours vary for this class based on the City’s needs and include some early mornings, evenings, weekends, and holidays. Employees may also be required to be on-call to address unexpected and emergency needs.

Tools and Equipment:

Must possess the knowledge and ability to effectively use computers, copiers, scanners, facsimile machines, calculators, microfiche readers, telephones, digital cameras, rulers, tape measures, noise meters, keys, electronic access control devices, and other measuring devices to collect data and information, as well as personal protective equipment. “Ability to effectively use computers” includes, but is not limited to, the knowledge and ability to input, query, and maintain information in software such as Microsoft Windows, Outlook, Excel, Edge, and SharePoint, and Google Earth, as well as the City’s cashiering, code enforcement, geographic information system (“GIS”), multifactor authentication, permitting, inspection, scheduling, records, and teleconferencing software, as may change from time to time. “Computers” includes, without limitation, tablet devices.

OTHER NOTICES:

The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from this position if the work is a similar, related, or logical assignment.

The selection process for this position will include fingerprinting; a State of California ITEM 9.2 – Attachment A
Code Enforcement Officer Job Classification – Approved: XX/XX/2025 – Page 6 of 6 Department of Justice criminal background check; reference checks; confirmation of education claims, licenses, and certifications; and, a physical medical examination.

This position is not exempt under the Fair Labor Standards Act.

Pursuant to California Government Code Section 36506, neither this job classification nor any other communication, rule, or regulation shall be construed to provide employees with any tenure or property interest in employment with the City. All City employees serve “at will” and are subject to termination without cause at any time – no exceptions.

All City employees are designated Disaster Service Workers by both state law and City ordinance. Duties when serving as a Disaster Service Worker may be in locations, during hours, and performing work significantly different from the employee’s normal duties.

The City of Laguna Woods is an Equal Employment Opportunity employer and does not discriminate on the basis of any legally protected category [race (including, but not limited to, traits historically associated with race such as hair texture and protective hairstyles), color, religion (including, but not limited to, religious dress and grooming practices), sex/gender (including, but not limited to, pregnancy, childbirth, breastfeeding, and related medical conditions), gender identity, gender expression, sexual orientation, marital status, medical condition (including, but not limited to, genetic characteristics and cancer or a record or history of cancer), military or veteran status, national origin (including, but not limited to, language use and possession of a driver’s license issued to persons unable to provide their presence in the United States is authorized under federal law), ancestry, disability (including, but not limited to, mental and physical disabilities such as cancer, genetic characteristics, and human immunodeficiency virus (“HIV”)/ acquired immunodeficiency syndrome (“AIDS”)), genetic information, age over 40 years, or any other basis protected by applicable federal, state, or local law, including association with individuals with one or more of these protected characteristics or perception that an individual has one or more of these protected characteristics].

The City provides employment rights and non-discrimination on the basis of disability as established in the Americans with Disabilities Act. Reasonable accommodation may be made to enable a person with a disability to perform this position’s essential functions.

Additional laws, rules, and regulations apply to this position.

ITEM 9.2 – Attachment B
R 25-XX 1 XX-XX-2025
RESOLUTION NO. 25-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, REPEALING RESOLUTION NO. 25-27 AND

ESTABLISHING A COMPENSATION SCHEDULE AND BENEFITS FOR

CITY EMPLOYEES, INCLUDING THE CITY MANAGER AND OTHER

LOCAL AGENCY EXECUTIVES AS DEFINED IN CALIFORNIA
GOVERNMENT CODE SECTION 3511.1

THE CITY COUNCIL OF THE CITY OF LAGUNA WOODS, CALIFORNIA,

DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:

SECTION 1. Resolution No. 25-27 is hereby repealed. The effective date of this resolution is September 20, 2025.

SECTION 2. Compensation Schedule. The compensation schedule for City employees is established as set forth in Exhibit A, attached hereto and incorporated by this reference.

The City Manager is authorized to hire, promote, and compensate employees within established compensation ranges, to offer benefits, to fill any full-time position as a part-time or limited part-time position, and to hire employees for time-limited periods, consistent with City Council-adopted budgets and this resolution.

SECTION 3. Full-Time Employee Benefits. All employees who work 40 or more hours per week on a regularly assigned basis shall be considered “full-time employees” for the purpose of this resolution. Full-time employees shall receive the following benefits:

A. Paid Holidays: The City shall observe the following holidays with full-time employees receiving eight hours of compensation for each weekday on which a holiday is observed: Martin Luther King Jr. Day, Presidents’ Day, Cesar Chavez Day, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Veterans Day, Thanksgiving, Friday after Thanksgiving, and Winter Holiday (December 24 through January 1; when December 24 falls on a Tuesday, Winter Holiday shall be observed beginning on December 23; when January 1 falls on a Sunday or Thursday, Winter Holiday shall be observed through January 2). Except for Winter Holiday, which is observed on specified dates, when a holiday falls on a Saturday, it ITEM 9.2 – Attachment B
R 25-XX 2 XX-XX-2025
shall be observed the on prior Friday; when a holiday falls on a Sunday, it shall be observed on the following Monday.

Full-time employees with the designation “Building Employee” in Exhibit A shall be required to work on the days Martin Luther King, Jr. Day, Cesar Chavez Day, and Juneteenth National Independence Day are observed but shall (i) receive one hour of administrative leave for every hour worked, which shall be used within 30 calendar days of the date earned, if exempt, or (ii) receive 1.5 times pay for every such hour required to work, if non-exempt.

Upon separation from the City, full-time employees shall be compensated for the balance of their accrued administrative leave time.

Except for the City Manager, full-time employees who are required by their supervisor to work on any City-observed holiday, with such requirement made in writing, shall (i) receive one hour of administrative leave for every hour worked, which shall be used within 30 calendar days of the date earned, if exempt, or (ii) receive 1.5 times pay for every such hour required to work, if non-exempt. Upon separation from the City, full-time employees shall be compensated for the balance of their accrued administrative leave time.

B. Floating Holidays: The City shall provide each full-time employee with two floating holidays per calendar year, equivalent to 16 hours of pay credited the first pay period of each calendar year. Floating holidays are not accrued on a pro-rata basis throughout the calendar year. Full-time employees must be in paid status on regularly scheduled workdays before and after using floating holiday time. Floating holiday time shall be used in increments of eight hours.

Full-time employees may maintain a balance of no more than 16 hours of unused floating holiday time (Floating Holiday Accrual Limit) and shall not accrue additional floating holiday time when the Floating Holiday Accrual Limit has been reached. Upon separation from the City, full-time employees shall be compensated for the balance of their accrued floating holiday time.

C. Retirement: All City employees, including full-time employees, are required to participate in the Social Security system. In addition, the City shall contract with the California Public Employees’ Retirement System (CalPERS) for retirement benefits for all eligible full-time employees, unless excluded in the City’s agreement with CalPERS. Full-time employees considered “classic” by CalPERS shall pay the 7% employee contribution pursuant to the terms of Resolution No. 12-18. Full-time employees considered “new members” by ITEM 9.2 – Attachment B
R 25-XX 3 XX-XX-2025
CalPERS shall pay the employee contribution rate established by CalPERS, as may change from time to time. The CalPERS plans have the following additional Class 1 Benefit Provisions: One Year Final Compensation (FAC 1) (classic employees only) and Increased Industrial Disability Retirement (IDR) Allowance to 75% of Compensation (75% IDR) (all employees).

D. Retiree Medical: As required by, and in an amount established by California Government Code Section 22892, the City shall contribute toward CalPERS retiree health insurance for retiring full-time employees who meet the applicable statutory and CalPERS contract requirements to obtain CalPERS retiree medical benefits. Part-time service for employees who transition from part-time to full-time employment with the City may be used to meet applicable statutory and CalPERS contract requirements, with each 174 hours counting as one month.

E. Monthly Benefit Allowance: The City shall provide each full-time employee with a monthly benefit allowance of $1,500.00 per month. A portion of the allowance shall be allocated to pay for health insurance, as provided in this resolution. The remaining balance of the monthly benefit allowance may be allocated by the employee to elect benefits available through the City’s Internal Revenue Code Section 125 Flexible Benefits Plan, in accordance with applicable plan documents. Any amount of the monthly benefit allowance that remains after the allocations described above shall be forfeited. Full-time employees shall be required to make elections for the annual calendar year use of the entirety of monthly benefit allowances during an enrollment/election period established by the City Manager, as may change from time to time. Modifications of annual calendar year elections following any enrollment/election period shall be limited to qualifying events as set forth in applicable plan documents.

F. Health Insurance: All employees shall be covered by basic health insurance that qualifies as Minimum Essential Coverage under California law. The City shall contract for health insurance through CalPERS; enrollment in a CalPERS health plan shall be mandatory for all full-time employees unless proof of coverage under a qualifying, alternate non-individual market basic health insurance plan is provided. The cost of enrollment in a CalPERS health plan shall be deducted first from each full-time employee’s monthly benefit allowance and then from salary (if necessary).

G. Flexible Benefits Plan: The City shall contract for the provision of an Internal ITEM 9.2 – Attachment B
R 25-XX 4 XX-XX-2025
Revenue Code Section 125 Flexible Benefits Plan; enrollment in the plan shall be voluntary for all full-time employees. Full-time employees may contribute to the plan by electing to allocate a portion of their monthly benefit allowance and/or through a salary reduction at their sole expense.

H. Deferred Compensation Plan: The City shall contract for the provision of an Internal Revenue Code Section 457 Deferred Compensation Plan; enrollment in the plan shall be voluntary for all full-time employees. Full-time employees may contribute to the plan through a pre-tax and/or Roth salary reduction at their sole expense.

I. Paid Time Off: Full-time employees shall accrue 160 hours per calendar year of annual paid time off (leave), which may be used for doctors’ appointments, personal and family sick time, bereavement leave, jury duty leave, vacation, and personal business. Hours earned are accrued on a pro-rata basis by pay period.

Full-time employees may maintain a balance of no more than 480 hours of paid time off (Leave Accrual Limit) and shall cease to accrue additional paid time off when the Leave Accrual Limit has been reached. When a full-time employee’s balance of paid time off falls below the Leave Accrual Limit, accrual shall resume beginning with the first pay period following the pay period in which the balance of paid time off fell below the Leave Accrual Limit. Upon separation from the City, full-time employees shall be compensated for the balance of their accrued paid time off.

J. Paid Bereavement Leave: Full-time employees shall be eligible for a total of up to 40 hours per 12-month period of paid bereavement leave in the event of any death in the immediate family or reproductive loss event. For the purpose of this provision, “immediate family” includes spouse, registered domestic partner, mother, stepmother, father, stepfather, brother, stepbrother, sister, stepsister, child, stepchild, grandparent, stepgrandparent, grandchild, and stepgrandchild of the full-time employee or the full-time employee’s spouse or registered domestic partner. For the purpose of this provision, “reproductive loss event” shall have the meaning set forth in California Government Code 12945.6.

K. Paid Court Leave: While California Government Code Section 1230 does not require the City to grant full-time employees paid leaves of absence to appear as a witness in court other than as a litigant, to serve on a jury, or to respond ITEM 9.2 – Attachment B
R 25-XX 5 XX-XX-2025
to an official order from another governmental jurisdiction for reasons not brought about through the connivance or misconduct of the full-time employee, full-time employees shall be eligible for a total of up to 80 hours per 12-month period of paid court leave for those purposes when proof of such obligation is provided and proof of any amounts received for jury and/or witness fees is provided (if applicable). During paid court leave, full-time employees shall (i) be paid the amount of the difference between his/her/their regular earnings and any amounts received for jury and/or witness fees, and (ii) be responsive to the City’s telephone and other communications when not precluded by the purposes for which paid court leave is granted.

L. Educational Assistance: Eligible full-time employees may participate in the Educational Assistance Program set forth in Exhibit B, attached hereto and incorporated by this reference.

SECTION 4. Part-Time Employee Benefits. All employees who are not fulltime employees, but who work 20 or more hours per week on a regularly assigned basis, shall be considered “part-time employees” for the purpose of this resolution.

Part-time employees shall receive the following benefits:

A. Paid and Unpaid Holidays: The City shall observe the following holidays with part-time employees receiving eight hours of compensation for each weekday on which a holiday is observed: New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Cesar Chavez Day, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Veterans Day, Thanksgiving, and Friday after Thanksgiving. The City shall also observe the following unpaid holidays: Winter Holiday (December 24 through January 1; when December 24 falls on a Tuesday, Winter Holiday shall be observed beginning on December 23; when January 1 falls on a Sunday or Thursday, Winter Holiday shall be observed through January 2). Except for Winter Holiday, which is observed on specified dates, when a holiday falls on a Saturday, it shall be observed on the prior Friday; when a holiday falls on a Sunday, it shall be observed on the following Monday.

Part-time employees with the designation “Building Employee” in Exhibit A shall be required to work on the days Martin Luther King, Jr. Day, Cesar Chavez Day, and Juneteenth National Independence Day are observed but shall (i) receive one hour of administrative leave for every hour worked, which shall be used within 30 calendar days of the date earned, if exempt, or (ii) receive 1.5 times pay for every such hour required to work, if non-exempt.

ITEM 9.2 – Attachment B
R 25-XX 6 XX-XX-2025
Upon separation from the City, part-time employees shall be compensated for the balance of their accrued administrative leave time.

Except for the City Manager, part-time employees who are required by their supervisor to work on any City-observed holiday, with such requirement made in writing, shall (i) receive one hour of administrative leave for every hour worked, which shall be used within 30 calendar days of the date earned, if exempt, or (ii) receive 1.5 times pay for every such hour required to work, if non-exempt. Upon separation from the City, part-time employees shall be compensated for the balance of their accrued administrative leave time.

B. Floating Holidays: The City shall provide each part-time employee with two floating holidays per calendar year, equivalent to 16 hours of pay credited the first pay period of each calendar year. Floating holidays are not accrued on a pro-rata basis throughout the calendar year. Part-time employees must be in paid status on regularly scheduled workdays before and after using floating holiday time. Floating holiday time shall be used in increments of eight hours and only between December 24 and 31.

Part-time employees may maintain a balance of no more than 16 hours of unused floating holiday time (Floating Holiday Accrual Limit) and shall not accrue additional floating holiday time when the Floating Holiday Accrual Limit has been reached. Upon separation from the City, part-time employees shall be compensated for the balance of their accrued floating holiday time.

The use of floating holiday time need not correspond to a part-time employee’s hours regularly worked.

C. Retirement: All City employees, including part-time employees, are required to participate in the Social Security system. Part-time employees who work 1,000 hours or more in a fiscal year, shall be eligible for membership in CalPERS for retirement benefits, unless excluded in the City’s agreement with CalPERS. Eligible part-time employees considered “classic” by CalPERS shall pay the 7% employee contribution pursuant to the terms of Resolution No. 12-18. Eligible part-time employees considered “new members” by CalPERS shall pay the employee contribution rate established by CalPERS, as may change from time to time. The CalPERS plans have the following additional Class 1 Benefit Provisions: One Year Final Compensation (FAC 1) (classic employees only) and Increased Industrial Disability Retirement (IDR) Allowance to 75% of Compensation (75% IDR) (all employees).

ITEM 9.2 – Attachment B
R 25-XX 7 XX-XX-2025
D. Retiree Medical: As required by, and in an amount established by California Government Code Section 22892, the City shall contribute toward CalPERS retiree health insurance for retiring full-time employees who meet the applicable statutory and CalPERS contract requirements to obtain CalPERS retiree medical benefits. Part-time service for employees who transition from part-time to full-time employment with the City may be used to meet applicable statutory and CalPERS contract requirements, with each 174 hours counting as one month.

E. Monthly Benefit Allowance: The City shall provide part-time employees with a monthly benefit allowance of $1,200.00 per month. A portion of the allowance shall be allocated to pay for health insurance, as provided in this resolution. The remaining balance of the monthly benefit allowance may be allocated by the employee to elect benefits available through the City’s Internal Revenue Code Section 125 Flexible Benefits Plan, in accordance with applicable plan documents. Any amount of the monthly benefit allowance that remains after the allocations described above shall be forfeited. Part-time employees shall be required to make elections for the annual calendar year use of the entirety of monthly benefit allowances during an enrollment/election period established by the City Manager, as may change from time to time. Modifications of annual calendar year elections following any enrollment/election period shall be limited to qualifying events as set forth in applicable plan documents.

F. Health Insurance: All employees shall be covered by basic health insurance that qualifies as Minimum Essential Coverage under California law. The City shall contract for health insurance through CalPERS; enrollment in a CalPERS health plan shall be mandatory for all part-time employees unless proof of coverage under a qualifying, alternate non-individual market basic health insurance plan is provided. The cost of enrollment in a CalPERS health plan shall be deducted first from each part-time employee’s monthly benefit allowance and then from salary (if necessary).

G. Flexible Benefits Plan: The City shall contract for the provision of an Internal Revenue Code Section 125 Flexible Benefits Plan; enrollment in the plan shall be voluntary for all part-time employees. Part-time employees may contribute to the plan through a salary reduction at their sole expense and/or by electing to allocate a portion of their monthly benefit allowance, if provided.

H. Deferred Compensation Plan: The City shall contract for the provision of an ITEM 9.2 – Attachment B
R 25-XX 8 XX-XX-2025
Internal Revenue Code Section 457 Deferred Compensation Plan; enrollment in the plan shall be voluntary for all part-time employees. Part-time employees may contribute to the plan through a pre-tax and/or Roth salary reduction at their sole expense.

I. Paid Time Off: Part-time employees shall accrue 160 hours per calendar year of annual paid time off (leave), which shall be pro-rated based on the number of hours regularly worked less than 40 hours per week. Paid time off may be used for doctors’ appointments, personal and family sick time, bereavement leave, jury duty leave, vacation, and personal business. Paid time off may also be used up to the number of hours regularly worked during unpaid holidays that fall on weekdays (less any floating holiday time used). Hours earned are accrued on a pro-rata basis by pay period.

Part-time employees may maintain a balance of no more than 300 hours of paid time off (Leave Accrual Limit) and shall cease to accrue additional paid time off when the Leave Accrual Limit has been reached. When a part-time employee’s balance of paid time off falls below the Leave Accrual Limit, accrual shall resume beginning with the first pay period following the pay period in which the balance of paid time off fell below the Leave Accrual Limit. Upon separation from the City, part-time employees shall be compensated for the balance of their accrued paid time off.

J. Paid Bereavement Leave: Part-time employees shall be eligible for a total of up to 40 hours per 12-month period of paid bereavement leave in the event of any death in the immediate family or reproductive loss event. For the purpose of this provision, “immediate family” includes spouse, registered domestic partner, mother, stepmother, father, stepfather, brother, stepbrother, sister, stepsister, child, stepchild, grandparent, stepgrandparent, grandchild, and stepgrandchild of the part-time employee or the part-time employee’s spouse or registered domestic partner. For the purpose of this provision, “reproductive loss event” shall have the meaning set forth in California Government Code 12945.6.

K. Paid Court Leave: While California Government Code Section 1230 does not require the City to grant part-time employees paid leaves of absence to appear as a witness in court other than as a litigant, to serve on a jury, or to respond to an official order from another governmental jurisdiction for reasons not brought about through the connivance or misconduct of the part-time employee, part-time employees shall be eligible for a total of up to 64 hours ITEM 9.2 – Attachment B
R 25-XX 9 XX-XX-2025
per 12-month period of paid court leave for those purposes when proof of such obligation is provided and proof of any amounts received for jury and/or witness fees is provided (if applicable). During paid court leave, part-time employees shall (i) be paid the amount of the difference between his/her/their regular earnings and any amounts received for jury and/or witness fees, and (ii) be responsive to the City’s telephone and other communications when not precluded by the purposes for which paid court leave is granted.

L. Educational Assistance: Eligible part-time employees may participate in the Educational Assistance Program set forth in Exhibit B, attached hereto and incorporated by this reference.

SECTION 5. Limited Part-Time Employee Benefits. All employees who work less than 20 hours per week on a regularly assigned basis shall be considered “limited part-time employees” for the purpose of this resolution. Limited part-time employees shall receive the following benefits:

A. Retirement: All City employees, including limited part-time employees, are required to participate in the Social Security system.

B. Deferred Compensation Plan: The City shall contract for the provision of an Internal Revenue Code Section 457 Deferred Compensation Plan; enrollment in the plan shall be voluntary for all limited part-time employees. Limited part-time employees may contribute to the plan through a pre-tax and/or Roth salary reduction at their sole expense.

C. Paid Time Off: On the 90th calendar day of employment, and every January 1 thereafter, limited part-time employees shall accrue 40 hours of annual paid time off (leave), which may be used for personal illness, to care for a sick family member, for preventive care or diagnosis, care or treatment of an existing health condition, or for specified purposes if the limited part-time employee is a victim of domestic violence, sexual assault, or stalking. Paid time off must be used in a minimum increment of two hours per calendar day.

There is no accrual or carryover of paid time off between or across calendar years. Upon termination from the City, limited part-time employees shall not be compensated for the balance of their paid time off. If a limited part-time employee separates from and is rehired by the City within one year, previously accrued and unused paid time off shall be reinstated.

D. Educational Assistance: Eligible limited-time employees with the designation ITEM 9.2 – Attachment B
R 25-XX 10 XX-XX-2025
“Building Employee” in Exhibit A may participate in the Educational Assistance Program set forth in Exhibit B, attached hereto and incorporated by this reference.

SECTION 6. Employee Assistance Program. The City shall contract for an employee assistance program to provide voluntary, confidential assistance to employees in working through various life challenges that may adversely affect job performance, health, and personal well-being in order to optimize the City’s success.

All full-time, part-time, and limited part-time employees shall be enrolled in the employee assistance program with the cost of enrollment paid by the City.

SECTION 7. Technology Allowances. The City Manager is authorized to offer technology allowances of either (i) $25.00 per employee per month to employees who are regularly required to use their personal cellular telephone as part of the City’s multi-factor authentication and cyber security protocols, with the exception of the City Manager, or (ii) $79.50 per employee per month to employees who are regularly required to use their personal cellular telephones, personal computers, and/or other personal technology to conduct City business, with the exception of the City Manager. Such technology allowances shall be added to employee compensation and shall be paid in the first pay period of each month, subject to any applicable wage withholding or similar taxes. Employees must be in paid status on regularly scheduled workdays during the first pay period of each month in order to receive payment.

SECTION 8. Notary Public Stipends. The City Manager is authorized to offer notary public stipends of $100.00 per employee per month to employees who regularly provide notary public and foreign pension acknowledgement services in the course of City business, with the exception of the City Manager. Such notary public stipends shall be added to employee compensation and shall be paid in the first pay period of each month, subject to any applicable wage withholding or similar taxes. Employees must be in paid status on regularly scheduled workdays during the first pay period of each month, and in possession of an active and valid notary public commission from the State of California as of the payroll processing date for the first pay period of each month, in order to receive payment. The City Manager is also authorized to incur and pay, on behalf of the City, costs related to the education and commission of employees who regularly provide notary public services in the course of City business, with the exception of the City Manager.

SECTION 9. Acting Appointments. Employees temporarily assigned to a higher level job classification (based on the comparative starting compensations set ITEM 9.2 – Attachment B
R 25-XX 11 XX-XX-2025
forth in Exhibit A) for 14 consecutive calendar days or more shall receive acting status pay equivalent to the starting compensation for the job classification to which they are temporarily assigned, unless their increase in compensation would be less than 10% in which case they shall receive acting status pay equivalent to a 10% increase in compensation. Benefits shall remain unchanged during temporary assignments.

SECTION 10. Unpaid Leave. The City Manager may grant employees other than the City Manager leaves of absence without pay, upon written request of the employee setting forth the reason for the request. The City Manager shall evaluate requests on the basis of need, duration, and work requirements. No employee shall expect that requests will be granted. The City Manager shall respond to the employee’s request in writing. The City Manager has discretion, in accordance with applicable law and regulation, to grant less than the full amount of leave requested.

Any unpaid leave of absence lasting more than seven consecutive calendar days shall preclude the employee from accruing paid time off and floating holidays, and from receiving holiday pay, after the seventh consecutive calendar day until their return to paid status. Upon expiration of an approved unpaid leave of absence and at the City Manager’s sole discretion, unless otherwise required by law or regulation, the employee shall be reinstated in the position held at the time leave was granted, assuming the position still exists. An employee who fails to report to duty promptly at expiration of an approved unpaid leave of absence shall be subject to disciplinary action up to and including termination and/or subject to separation due to job abandonment.

SECTION 11. City Manager’s Compensation and Benefits. The City Manager shall receive such other compensation and benefits as set forth in the employment agreement separately approved by the City Council on May 17, 2023 and as may be subsequently amended.

SECTION 12. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2025. _______________________________
SHARI L. HORNE, Mayor
ITEM 9.2 – Attachment B
R 25-XX 12 XX-XX-2025
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 25-XX was duly adopted by the City Council of the City of Laguna Woods at a regular meeting thereof, held on the XX day of XX 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
ITEM 9.2 – Attachment B
R 25-XX 13 XX-XX-2025

EXHIBIT A

COMPENSATION SCHEDULE
Exempt Full-Time Employees (Annual Equivalent)
Administrative Services Director/City Treasurer $134,030.00 – $187,642.00 Assistant to the City Manager $103,090.00 – $144,326.00 Building Official* $127,320.00 – $178,248.00
City Clerk $98,975.00 – $138,565.00
City Manager $225,067.96 (Existing)
$229,569.32 (Effective 12/13/25)
Conservation Administrator $89,674.00 – $125,543.60
Deputy City Clerk $76,375.00 – $106,925.00
Management Analyst $80,300.00 – $112,420.00
Planning & Environmental Services Director $134,030.00 – $187,642.00 Public Works Administrator $96,252.00 – $134,752.80
Senior Management Analyst $94,450.00 – $132,230.00
Senior Planner $89,918.40 – $125,881.60
Non-Exempt Full-Time Employees (Hourly Rate)
Accountant $35.45 – $49.63
Accounting Clerk $25.27 – $35.38
Building Inspector* $38.74 – $54.24
Code Enforcement Officer $34.95 – $48.92
Permit Technician* $29.54 – $41.36
Senior Accountant $38.91 – $54.47
Non-Exempt Part-Time/Limited Part-Time Employees (Hourly Rate) Receptionist $20.00 – $28.00
* Designated as “Building Employee”
ITEM 9.2 – Attachment B
R 25-XX 14 XX-XX-2025

EXHIBIT B

EDUCATIONAL ASSISTANCE PROGRAM
This City of Laguna Woods Educational Assistance Program (Plan) is intended to be a qualified educational assistance program that provides nontaxable Educational Assistance to Eligible Employees of the City of Laguna Woods (Employer) under Internal Revenue Code (Code) Section 127.

I. ELIGIBILITY
A. The Eligible Employees covered under this Plan include the following:
i. Employees currently employed by the Employer;
ii. Employees currently employed by the Employer who are on leave, as for example, in theArmed Forces of the United States; and B. This Plan includes the following additional conditions for eligibility:
i. Full-time employees are eligible to participate in this Plan beginning on the 183rd day of their employment with the Employer;
ii. Part-time employees are eligible to participate in this Plan beginning on the 183rd day of their employment with the Employer;
iii. Limited part-time employees with the designation “Building Employee” are eligible to participate in this Plan beginning on the 183rd day of their employment with the Employer; and
iv. Other limited part-time employees are not eligible to participate in this Plan.

II. EDUCATIONAL ASSISTANCE
A. The benefits provided under this Plan consist solely of the types of Educational Assistance specified in Section II.C and are limited to up to $5,250.00 per Eligible Employee per calendar year, based on the Eligible Employee’s length of employment as per the schedule specified in Section II.B below. If an Eligible Employee receives Educational Assistance under this Plan that exceeds $5,250.00 in a calendar year, the excess amount may be ITEM 9.2 – Attachment B
R 25-XX 15 XX-XX-2025
subject to federal income tax and applicable federal employment taxes.

Notwithstanding the benefits provided under this Plan, the Employer may directly pay for education and/or training for its employees outside of the Plan. i. “Educational Assistance” includes the payment by the Employer of expenses incurred by or on behalf of an Eligible Employee for Education of the Eligible Employee or the provision by the Employer of Education to an Eligible Employee. Expenses for Educational Assistance must be approved by the Employer per Section II.D and be job-related. Eligible Employees must provide all documentation under Section III.A in order to receive reimbursement after a course is completed. Eligible expenses for approved courses includes tuition, fees, and similar payments. “Educational Assistance” does not include (a) payment for, or the provision of, tools or supplies (other than required textbooks) that the Eligible Employee may retain after completing a course of instruction; (b) meals, lodging, or transportation; (c) any payment for, or the provision of any benefits with respect to, any course or other Education involving sports, games, or hobbies, unless such Education involves the business of the Employer or is required as part of a degree program; or (d) fees for late registration or for withdrawing from or dropping a course. The types of Educational Assistance covered by this Plan are specified in Section II.C.

B. Eligible Employees will be eligible for Educational Assistance up to the following annual maximums, based on their length of continuous employment with the Employer:
i. 183 calendar days to less than 2 years of employment: Eligible for reimbursement of up to $1,050.00 per calendar year (20% of the annual $5,250.00 limit).
ii. 2 years but less than 6 years of employment: Eligible for reimbursement of up to $2,625.00 per calendar year (50% of the annual $5,250.00 limit).
iii. 6 years or more of employment: Eligible for reimbursement of up to $5,250.00 per calendar year (100% of the annual limit).

C. This Plan provides the following types of Educational Assistance:

ITEM 9.2 – Attachment B
R 25-XX 16 XX-XX-2025
i. For courses approved by the Employer pursuant to Section II.C below, reimbursement for tuition, fees, and similar payments, to an Eligible Employee; and
ii. The provision, by the Employer, of courses of instruction for an Eligible Employee.

D. Applying for Course Approval:
i. To receive course approval, an employee must submit a written request in the format required by the Employer. If the Employer approves the course, the Employer will provide a written statement noting the course approval, the expenses that are reimbursable, and the maximum amount of reimbursement that will be provided for the course. Until an employee has received a written course approval, the employee should consider a course unapproved, regardless of any discussions that the employee may have had with any representative of the Employer regarding the course.
ii. An employee may submit a course approval request before a course begins or while the course is ongoing. If an employee elects to sign up for a course before obtaining course approval, however, there is no assurance that the course will be approved for reimbursement. If the employee’s decision to take a course is dependent on a particular amount of reimbursement being available under this Plan, the employee should make sure to obtain course approval before registering. To ensure that course approval is determined in time, course approval requests for advanced approval should be submitted at least 15 business days before the registration deadline for the course.
iii. No course will be considered for approval if a course approval request is submitted after the course ends.
iv. In addition to course approval, Eligible Employees must provide all of the information under Section III.A in order to receive reimbursement.

E. The annual limit specified in Section II.B applies to amounts paid and expenses incurred by the Eligible Employee during a calendar year. For courses that span multiple calendar years, the reimbursable expenses will be allocated proportionally between the years based on course length, credits, or ITEM 9.2 – Attachment B
R 25-XX 17 XX-XX-2025
other reasonable method determined by the Employer to determine when expenses are treated as incurred for purposes of applying each year’s annual reimbursement limit. If an Eligible Employee seeks reimbursement for expenses incurred, the expenses must not have been incurred prior to employment. “Unused” amounts of the annual limit cannot be carried forward to subsequent years.

III. CLAIM REIMBURSEMENT
A. To obtain reimbursement for a course, which will be paid after the course is completed provided all requirements of the Plan are met, the following must be submitted to the Employer within 30 calendar days after course completion:
i. a signed and fully completed benefits request in the form required by the Employer;
ii. a copy of the course approval request already submitted and approved by the Employer;
iii. for courses that are graded, documentation showing completion of the course with a grade equivalent of "C" or better (or a pass for a course that is graded on a pass/fail basis); and
iv. documentation substantiating any course-related expenses for tuition, fees, or similar expenses required for the course that were incurred or paid by the employee and for which reimbursement is sought.

B. Courses that are dropped, withdrawn from, or completed with a grade equivalent to "C-" or less will not be eligible for reimbursement, and employees will be responsible for any associated penalties or fees.

C. Employees who voluntarily leave employment with the Employer or are terminated for cause (as defined by the Employer’s policies) within 12 months of receiving Educational Assistance under the Plan shall be required to repay the amount received within 60 calendar days of separation. Exceptions may be made for involuntary separations not for cause or separations due to extenuating circumstances, at the discretion of the Employer.

IV. EXCLUSIVE BENEFIT
ITEM 9.2 – Attachment B
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This Plan provides Educational Assistance for the exclusive benefit of Eligible Employees. Spouses and dependents of an Eligible Employee may not participate in this Plan, unless the spouse or dependent is also an Eligible Employee.

V. SUBSTANTIATION
An Eligible Employee receiving payments under this Plan must provide substantiation to the Employer of expenses incurred.

VI. NON-DISCRIMINATION
A. This Plan shall not discriminate in favor highly compensated employees (as defined in section 414(q) of the Code) of the Employer.

B. This Plan shall not be considered discriminatory under Treasury Regulation §

1.127-2(e) merely because: (a) Different types of Educational Assistance available under the Plan are utilized to a greater degree by Eligible Employees with respect to whom discrimination is prohibited than by other Eligible Employees, or (b) Conditions are required or considered in determining the availability of benefits with respect to a course of study for which benefits are otherwise available, including, but not limited to, successful completion of the course or attaining a particular coursegrade.

VII. NOTICE
The Employer shall provide each Eligible Employee with reasonable notice of the availability and terms of this Plan. This Plan shall be made available for review by Eligible Employees on the Employer’s Human Resources website. An Eligible Employee shall receive a paper copy of this Plan upon written request.

VIII. FUNDING
The Employer will pay Educational Assistance benefits from its general assets.

Employees are not required or permitted to contribute to the Plan.

IX. MISCELLANEOUS
The Employer may amend or terminate this Plan at any time, provided that any amendment or termination shall not affect the right of Eligible Employees to claim Education Assistance for courses in which they enrolled and which were approved ITEM 9.2 – Attachment B
R 25-XX 19 XX-XX-2025
by the Employer for reimbursement prior to such amendment or termination.

The City Manager or their designee shall have the authority to interpret and administer this Plan, except as may pertain to their own use of this Plan in which case the City Manager (in case of a designee thereof) or the Mayor (in case of the City Manager) shall have the authority to interpret and administer this Plan. In the event of ambiguity, inconsistency, or uncertainty in the application of any provision, the City Manager or their designee (or City Council in case of the City Manager) is authorized to make final determinations, which shall be binding and not subject to further review.

This Plan shall be construed and enforced according to the laws of the State of California, to the extent not preempted by federal law.

X. EFFECTIVE DATE
This Plan is effective as of July 1, 2025.

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ITEM 9.2 – Attachment C
R 25-XX 1 XX-XX-2025
RESOLUTION NO. 25-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, REPEALING RESOLUTION NO. 25-2325-27

AND ESTABLISHING A COMPENSATION SCHEDULE AND

BENEFITS FOR CITY EMPLOYEES, INCLUDING THE CITY

MANAGER AND OTHER LOCAL AGENCY EXECUTIVES AS
DEFINED IN CALIFORNIA GOVERNMENT CODE SECTION 3511.1

THE CITY COUNCIL OF THE CITY OF LAGUNA WOODS, CALIFORNIA,

DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:

SECTION 1. Resolution No. 25-2325-27 is hereby repealed. The effective date of this resolution is August 23September 20, 2025.

SECTION 2. Compensation Schedule. The compensation schedule for City employees is established as set forth in Exhibit A, attached hereto and incorporated by this reference.

A. Paid Holidays: The City shall observe the following holidays with full-time employees receiving eight hours of compensation for each weekday on which a holiday is observed: Martin Luther King Jr. Day, Presidents’ Day, Cesar Chavez Day, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Veterans Day, Thanksgiving, Friday after Thanksgiving, and Winter Holiday (December 24 through January 1; when December 24 falls on a Tuesday, Winter Holiday shall be observed beginning on December 23; when January 1 falls on a Sunday or Thursday, Winter Holiday shall be observed through January 2). Except for Winter Holiday, which is observed on specified dates, when a holiday falls on a Saturday, it ITEM 9.2 – Attachment C
R 25-XX 2 XX-XX-2025
shall be observed the on prior Friday; when a holiday falls on a Sunday, it shall be observed on the following Monday.

Upon separation from the City, full-time employees shall be compensated for the balance of their accrued administrative leave time.

C. Retirement: All City employees, including full-time employees, are required to participate in the Social Security system. In addition, the City shall contract with the California Public Employees’ Retirement System (CalPERS) for retirement benefits for all eligible full-time employees, unless excluded in the City’s agreement with CalPERS. Full-time employees considered “classic” by CalPERS shall pay the 7% employee contribution pursuant to the terms of Resolution No. 12-18. Full-time employees considered “new members” by ITEM 9.2 – Attachment C
R 25-XX 3 XX-XX-2025
CalPERS shall pay the employee contribution rate established by CalPERS, as may change from time to time. The CalPERS plans have the following additional Class 1 Benefit Provisions: One Year Final Compensation (FAC 1) (classic employees only) and Increased Industrial Disability Retirement (IDR) Allowance to 75% of Compensation (75% IDR) (all employees).

G. Flexible Benefits Plan: The City shall contract for the provision of an Internal ITEM 9.2 – Attachment C
R 25-XX 4 XX-XX-2025
Revenue Code Section 125 Flexible Benefits Plan; enrollment in the plan shall be voluntary for all full-time employees. Full-time employees may contribute to the plan by electing to allocate a portion of their monthly benefit allowance and/or through a salary reduction at their sole expense.

K. Paid Court Leave: While California Government Code Section 1230 does not require the City to grant full-time employees paid leaves of absence to appear as a witness in court other than as a litigant, to serve on a jury, or to respond ITEM 9.2 – Attachment C
R 25-XX 5 XX-XX-2025
to an official order from another governmental jurisdiction for reasons not brought about through the connivance or misconduct of the full-time employee, full-time employees shall be eligible for a total of up to 80 hours per 12-month period of paid court leave for those purposes when proof of such obligation is provided and proof of any amounts received for jury and/or witness fees is provided (if applicable). During paid court leave, full-time employees shall (i) be paid the amount of the difference between his/her/their regular earnings and any amounts received for jury and/or witness fees, and (ii) be responsive to the City’s telephone and other communications when not precluded by the purposes for which paid court leave is granted.

L. Educational Assistance: Eligible full-time employees may participate in the Educational Assistance Program set forth in Exhibit B, attached hereto and incorporated by this reference.

Part-time employees shall receive the following benefits:

ITEM 9.2 – Attachment C
R 25-XX 6 XX-XX-2025
Upon separation from the City, part-time employees shall be compensated for the balance of their accrued administrative leave time.

The use of floating holiday time need not correspond to a part-time employee’s hours regularly worked.

ITEM 9.2 – Attachment C
R 25-XX 7 XX-XX-2025
D. Retiree Medical: As required by, and in an amount established by California Government Code Section 22892, the City shall contribute toward CalPERS retiree health insurance for retiring full-time employees who meet the applicable statutory and CalPERS contract requirements to obtain CalPERS retiree medical benefits. Part-time service for employees who transition from part-time to full-time employment with the City may be used to meet applicable statutory and CalPERS contract requirements, with each 174 hours counting as one month.

F. Health Insurance: All employees shall be covered by basic health insurance that qualifies as Minimum Essential Coverage under California law. The City shall contract for health insurance through CalPERS; enrollment in a CalPERS health plan shall be mandatory for all part-time employees unless proof of coverage under a qualifying, alternate non-individual market basic health insurance plan is provided. The cost of enrollment in a CalPERS health plan shall be deducted first from each part-time employee’s monthly benefit allowance and then from salary (if necessary).

H. Deferred Compensation Plan: The City shall contract for the provision of an ITEM 9.2 – Attachment C
R 25-XX 8 XX-XX-2025
Internal Revenue Code Section 457 Deferred Compensation Plan; enrollment in the plan shall be voluntary for all part-time employees. Part-time employees may contribute to the plan through a pre-tax and/or Roth salary reduction at their sole expense.

K. Paid Court Leave: While California Government Code Section 1230 does not require the City to grant part-time employees paid leaves of absence to appear as a witness in court other than as a litigant, to serve on a jury, or to respond to an official order from another governmental jurisdiction for reasons not brought about through the connivance or misconduct of the part-time employee, part-time employees shall be eligible for a total of up to 64 hours ITEM 9.2 – Attachment C
R 25-XX 9 XX-XX-2025
per 12-month period of paid court leave for those purposes when proof of such obligation is provided and proof of any amounts received for jury and/or witness fees is provided (if applicable). During paid court leave, part-time employees shall (i) be paid the amount of the difference between his/her/their regular earnings and any amounts received for jury and/or witness fees, and (ii) be responsive to the City’s telephone and other communications when not precluded by the purposes for which paid court leave is granted.

L. Educational Assistance: Eligible part-time employees may participate in the Educational Assistance Program set forth in Exhibit B, attached hereto and incorporated by this reference.

A. Retirement: All City employees, including limited part-time employees, are required to participate in the Social Security system.

D. Educational Assistance: Eligible limited-time employees with the designation ITEM 9.2 – Attachment C
R 25-XX 10 XX-XX-2025
“Building Employee” in Exhibit A may participate in the Educational Assistance Program set forth in Exhibit B, attached hereto and incorporated by this reference.

All full-time, part-time, and limited part-time employees shall be enrolled in the employee assistance program with the cost of enrollment paid by the City.

SECTION 9. Acting Appointments. Employees temporarily assigned to a higher level job classification (based on the comparative starting compensations set ITEM 9.2 – Attachment C
R 25-XX 11 XX-XX-2025
forth in Exhibit A) for 14 consecutive calendar days or more shall receive acting status pay equivalent to the starting compensation for the job classification to which they are temporarily assigned, unless their increase in compensation would be less than 10% in which case they shall receive acting status pay equivalent to a 10% increase in compensation. Benefits shall remain unchanged during temporary assignments.

SECTION 12. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2025. _______________________________
SHARI L. HORNE, Mayor
ITEM 9.2 – Attachment C
R 25-XX 12 XX-XX-2025
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
ITEM 9.2 – Attachment C
R 25-XX 13 XX-XX-2025

EXHIBIT A

EXHIBIT B

I. ELIGIBILITY
A. The Eligible Employees covered under this Plan include the following:
i. Employees currently employed by the Employer;
ii. Employees currently employed by the Employer who are on leave, as for example, in theArmed Forces of the United States; and B. This Plan includes the following additional conditions for eligibility:
i. Full-time employees are eligible to participate in this Plan beginning on the 366th 183rd day of their employment with the Employer; ii. Part-time employees are eligible to participate in this Plan beginning on the 366th 183rd day of their employment with the Employer; iii. Limited part-time employees with the designation “Building Employee” are eligible to participate in this Plan beginning on the 366th 183rd day of their employment with the Employer; and
iv. Other limited part-time employees are not eligible to participate in this Plan.

II. EDUCATIONAL ASSISTANCE
A. The benefits provided under this Plan consist solely of the types of Educational Assistance specified in Section II.C and are limited to up to $5,250.00 per Eligible Employee per calendar year, based on the Eligible Employee’s length of employment as per the schedule specified in Section ITEM 9.2 – Attachment C
R 25-XX 15 XX-XX-2025
II.B below. If an Eligible Employee receives Educational Assistance under this Plan that exceeds $5,250.00 in a calendar year, the excess amount may be subject to federal income tax and applicable federal employment taxes.

B. Eligible Employees will be eligible for Educational Assistance up to the following annual maximums, based on their length of continuous employment with the Employer:
i. 366 183 calendar days to less than 2 years of employment: Eligible for reimbursement of up to $1,050.00 per calendar year (20% of the annual $5,250.00 limit).
ii. 2 years but less than 6 years of employment: Eligible for reimbursement of up to $2,625.00 per calendar year (50% of the annual $5,250.00 limit).
iii. 6 years or more of employment: Eligible for reimbursement of up to $5,250.00 per calendar year (100% of the annual limit).

ITEM 9.2 – Attachment C
R 25-XX 16 XX-XX-2025
C. This Plan provides the following types of Educational Assistance:
i. For courses approved by the Employer pursuant to Section II.C below, reimbursement for tuition, fees, and similar payments, to an Eligible Employee; and
ii. The provision, by the Employer, of courses of instruction for an Eligible Employee.

E. The annual limit specified in Section II.B applies to amounts paid and expenses incurred by the Eligible Employee during a calendar year. For ITEM 9.2 – Attachment C
R 25-XX 17 XX-XX-2025
courses that span multiple calendar years, the reimbursable expenses will be allocated proportionally between the years based on course length, credits, or other reasonable method determined by the Employer to determine when expenses are treated as incurred for purposes of applying each year’s annual reimbursement limit. If an Eligible Employee seeks reimbursement for expenses incurred, the expenses must not have been incurred prior to employment. “Unused” amounts of the annual limit cannot be carried forward to subsequent years.

ITEM 9.2 – Attachment C
R 25-XX 18 XX-XX-2025
IV. EXCLUSIVE BENEFIT
This Plan provides Educational Assistance for the exclusive benefit of Eligible Employees. Spouses and dependents of an Eligible Employee may not participate in this Plan, unless the spouse or dependent is also an Eligible Employee.

V. SUBSTANTIATION
An Eligible Employee receiving payments under this Plan must provide substantiation to the Employer of expenses incurred.

VI. NON-DISCRIMINATION
A. This Plan shall not discriminate in favor highly compensated employees (as defined in section 414(q) of the Code) of the Employer.

B. This Plan shall not be considered discriminatory under Treasury Regulation §

VIII. FUNDING
The Employer will pay Educational Assistance benefits from its general assets.

Employees are not required or permitted to contribute to the Plan.

IX. MISCELLANEOUS
The Employer may amend or terminate this Plan at any time, provided that any ITEM 9.2 – Attachment C
R 25-XX 19 XX-XX-2025
amendment or termination shall not affect the right of Eligible Employees to claim Education Assistance for courses in which they enrolled and which were approved by the Employer for reimbursement prior to such amendment or termination.

This Plan shall be construed and enforced according to the laws of the State of California, to the extent not preempted by federal law.

X. EFFECTIVE DATE
This Plan is effective as of July 1, 2025.

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9.3 CITY COUNCIL MEETING SCHEDULE
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ITEM 9.3
CC  09-17-2025 RM ITEM 9.3 – AR Page 1 of 1
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: September 17, 2025 Regular Meeting
SUBJECT: City Council Meeting Schedule
Recommendation
Schedule an adjourned regular meeting of the City Council to be held in September 2025 at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, CA 92637.

Laguna Woods City CouncilSeptember 17, 2025

Laguna Woods City Council
September 17, 2025