Fair Political Practices Commission (FPPC) -
State
appointed commission to establish and enforce
election guidelines.
Franchise Tax - A tax charged for the privilege of
usin
g public rights-of-way and property within the City
for public or private purposes. The City charges fran - chise taxes to natural gas, electricity, cable television and
solid waste.
Full-Time Equivalent (FTE) - Full-time equivalent
emp
loyee works 2,080 hours in a year.
Fund - An accounting concept used to separate or
sub
divide the financial activity of a city for legal and
managerial purposes. All financial activity of a munici- pality must be classified in relation to a fund. The City’s bud
get consists of a general fund, special revenue
funds, debt service funds, capital project funds and
fiduciary funds.
General Plan - The comprehensive plan, required by
Sec
tion 65300 of the Government Code of the State of
California, that contains the goals, objectives, policies and specific actions that guide the long-term develop - ment and operation of the City of Lancaster.
Generally Accepted Accounting Principles
(GA
AP) - Principles are uniform, minimum standards
use
d for accounting and reporting for both private
industry and governments. The Governmental Account-
ing Standards Board currently sets government GAAP.
Governmental Accounting Standards Board
(GA
SB) - The current standards-setting board for gov -
ernmental GAAP.
Government Finance Officers Association of
the
United States and Canada (GFOA) - A non-
pro
fit professional association serving government
finance professionals throughout North America.
Grant - A contribution from one government unit to
ano
ther or from a non-profit organization usually made
for a specific purpose and time.
Intergovernmental Revenue - Revenue from other
gov
ernments, primarily shared State revenue from gas-
oline taxes and vehicle-in-lieu taxes.
Internal Control - The system of controls established
by
the City to protect the assets from misappropriation
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Glossary
City of Lancaster Proposed Budget
290
and ensure accurate reporting of financial transac -
tions.
Investment Policy - A written and Council adopted
pol
icy delineating permitted investments of the City’s
idle cash. The City of Lancaster’s Investment Policy is typically updated and reaffirmed annually.
Joint Powers Authority (JPA) – Legally created
entitie
s that allow two or more public agencies to
jointly exercise common powers. Forming such entities
can provide a creative approach to the provision of
public services; and permits public agencies with the
means to provide services more efficiently and in a
cost-effective manner.
The Joint Exercise of Powers Act – as codified in
Cal
ifornia Government Code section 6500 – governs
JPAs.
Licenses and Permits - Revenue category that
incl
udes building permits and any other miscellaneous
license.
Local Agency Investment Fund (LAIF) - State
Tre
asurer’s Investment Pool of funds from local jurisdic - tions to take advantage of the State Treasurer’s invest- ment expertise.
Los Angeles County Sheriff’s Department
(LA
SD) - Provides law enforcement services to the City
of
Lancaster under a general services agreement. The
LASD provides enforcement of local, state, and federal
statutes.
Memorandum of Understanding (MOU) - A for-
malized agreement of processes, results, or operating
crite
ria between two or more entities.
Metropolitan Transportation Authority (MTA) -
Adm
inisters transportation funds in Los Angeles
County.
Municipal Code - A compilation of City Council-
app
roved ordinances (laws) presently in effect. The
Code defines city policies in various categories.
Negative Declaration - A written statement briefly
des
cribing the reasons that an adopted project will not
have a significant effect on the environment and there - fore does not require the preparation of an Environ -
mental Impact Report (EIR). The contents of a Negative
Dec
laration are described in Section 15071 of the
State CEQA Guidelines.
Nixle - Allows for nearly instant emergency communi -
cations to residents and businesses via phone, email,
and
the web. It is also a mechanism to give instructions
and information to targeted groups in the community.
Objectives - Identifies the desired results of the activi- ties of a program.
Operating Budget - An operational plan, expressed
in f
inancial terms, by which a program is funded. It
includes: (1) the departmental function; (2) the services provided; and (3) current year resources and funding
allocation.
Ordinance - A formal legislative enactment by the
City
Council. It has the full force and effect of law
within the City boundaries unless it is in conflict with any higher form of law, such as a State statute or con - stitutional provision. An ordinance has higher legal
stan
ding than a resolution. A law set forth by a govern-
ment authority, specifically a municipal regulation. An ord
inance takes longer to enact than a resolution.
Pass-Through - The tax increment that is shared with
othe
r entities such as the county and school districts is
called a Pass-Through.
Personnel Expenses - Salary and fringe benefits
suc
h as pensions and insurance for full-time, part-time
and limited contract employees of the City.
Program - A division of a department that specifies a
gro
up of activities.
Program & Financial Plan - The Council approved
doc
ument stating goals and objectives for a fiscal year
and the method of financing thereof.
Property-Based Improvement District (PBID) -
The
special assessment district managed by The BLVD
Association for the benefit of the member businesses
which also serve as the source of the fees. These funds help to promote the downtown area in a variety of
ways – including joint marketing efforts, training
opportunities for businesses, and hosting BLVD Associ - ation special events.
Property Tax Rate - The amount of real property tax
lev
ied for each $1,000 assessed valuation. This rate is
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Glossary
City of Lancaster Proposed Budget
291
limited in California by Article XIII of the State Constitu- tion to 1 percent of assessed valuation plus voter-
app
roved overrides for indebtedness.
Proposition A - A countywide sales tax of ½ percent
app
roved by the voters in 1980 for use in transit proj-
ects.
Proposition C - A countywide sales tax of ½ percent
app
roved by the voters in 1990 for use in transit proj -
ects.
Public, Educational, and Governmental
Acc
ess Programming (PEG)
Public Employees Retirement System (PERS) -
Pro
vided for government employees within the State of
California. Each government agency may contract with
PERS if they wish; not all belong.
Recognized Obligation Payment Schedule
(RO
PS) - Per ABx1 26, the Successor Agency is
req
uired to prepare a Recognized Obligation Payment
Schedule annually. The Recognized Obligation Pay -
ment Schedules are approved at public meetings of the
Suc
cessor Agency and Oversight Board.
Redevelopment Agency - A government body ded-
icated to urban renewal. Typically, it is a municipal-
lev
el city department focused on a particular district or
corridor that has become neglected or blighted. Rede -
velopment existed in California for over 60 years and
ove
r 420 agencies were established by cities and
counties. Redevelopment was eliminated in 2011 by
ABx1 26 – a State budget trailer bill.
Request for Proposals (RFP) - Similar to a bid but
use
d when the desired product or service is not fully
quantifiable – such as ‘design a computer network.’
Request for Qualifications (RFQ) - A process
whe
reby professional services are solicited where the
product or service requires substantial assistance to
define – an example would be when soliciting architec-
tural services for a baseball stadium.
Reserved Fund Balance - A portion of the fund bal-
ance that is not re-appropriated as a source of funds.
In
the General Fund, it is the City’s formal policy to
maintain a minimum of 10% of annual budgeted
expenditures as a reserved fund balance.
Resolution - A City Council policy constituting a writ- ten action or decision.
Revenue - Funds received by the City as income,
incl
uding tax payments, licenses and permits, fees for
specific services, receipts/reimbursements from other
governmental entities, fines and forfeitures, grants, and investment income.
Revenue Estimate - A formal estimate of how much
rev
enue will be earned from a specific revenue source
for some future time period.
Sales and Use Tax - A tax imposed on the sale or
use
of all tangible personal property. As of April
2021, the tax rate for purchases in Lancaster is
10.25% – 6.25% goes to the State, 1.0% to the
County plus three county transportation levies for a
total of 2.25%. The balance of 1.75% stays locally in
the City of Lancaster.
SB 211 - When the life of a Redevelopment Project
Are
a is extended, this triggers the provisions of SB
211; whereby, over time, additional increment is
passed through to entities that would have received the property taxes based on the normal property tax allo -
cation formulas. This only applies to entities that do not hav
e a previously existing Pass-Through Agreement
with the Redevelopment Agency.
Single Audit - An audit performed in accordance
with
the Single Audit Act of 1984 and Office of Man -
agement and Budget (OMB) Circular A-128, Audits of
State
and local Governments. The Single Audit Act
requires governments to have one audit performed to
meet the needs of all Federal grantor agencies, thus
reducing the overall costs of audits.
Southern California Association of Govern -
ments (SCAG) - An association of government lead -
ers who endeavor to improve the local governing
pro
cess.
Special Revenue Fund - A fund used to account for
the
proceeds of specific revenue sources that are
legally restricted to expenditures for specific purposes.
Successor Agency - On February 1, 2012 the Lan -
caster Redevelopment Agency was dissolved per ABx1
26. The legislation requires a successor agency to
wind down the activities of the dissolved redevelop -
ment agency. On January 24, 2012, the Lancaster
DRAFT
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Glossary
City of Lancaster Proposed Budget
292
City Council assumed the responsibilities of the Succes- sor Agency for the former Redevelopment Agency.
Target Oriented Policing (TOP) - Funds set aside
for
the specific directed law enforcement designed to
immediately and administratively direct law enforce -
ment efforts to specific needs.
Taxes - Compulsory charges levied by a government
to f
inance services provided for the common benefit.
Tourism Business Improvement District (TBID)
- In 2013, seven Lancaster hotels recently joined
toge
ther to form the Lancaster Tourism Business
Improvement District providing funding for Destination
Lancaster via a small self-assessment on the hotels.
Transient Occupancy Tax (TOT) - The tax charged
on
all hotel and motel room rates in the City.
User Fees/Charges - A fee or charge for receipt of
a s
ervice by the user who benefits from using the ser -
vice.
Urban Structure Program (USP) - A computer -
ized fiscal model that calculates the development fees
for
adopted projects based on the estimated costs and
revenues the project will create to the City. The intent of the Urban Structure Program is to implement Objective
15.3 of the City of Lancaster General Plan by ensuring
that new development pays for the costs of providing
services and infrastructure needed to serve that devel - opment. This program has won the GFOA Award of
Exc
ellence in 1996 as well as the Helen Putnam
Award.
Zoning Ordinance - The adopted ordinance of the
City
of Lancaster that establishes the allowed uses,
development standards, and the procedural and
administrative requirements related to them for all
property within the City. The purpose of the Zoning
Ordinance is to implement the City’s adopted General
Plan.
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Appendix
Acronyms
City of Lancaster Proposed Budget
293
Acronyms
AB - Assembly Bill
ADA - American Disabilities Act
ACFR – Annual Comprehensive Financial Report
ARC - Annual Required Contribution
AVC - Antelope Valley College
AVEDGE – Antelope Valley Economic Development
and
Growth Enterprise (a merger of Antelope Valley
Board of Trade (AVBOT) and Greater Antelope Valley
Economic Alliance (GAVEA) in 2020
AVEK - Antelope Valley-Eastern Kern Water Agency
AVTA - Antelope Valley Transit Authority
AVTTF - Antelope Valley Traffic Task Force
AVUHSD - Antelope Valley Union High School District
AWOH - Aerospace Walk of Honor BAIP - Business
Attra
ction Incentive Program
BYD - Build Your Dreams
CAT - Combat Auto Theft
CCEA - California Choice Energy Authority
CCI - Construction Cost Index
CDBG - Community Development Block Grant
CDCR - California Department of Corrections and
Reh
abilitation
CEC - California Energy Commission
CERT - Community Emergency Response Team
CEQA - California Environmental Quality Act
CFC - California Film Commission
CHAG - City Hall Art Gallery
CIC - Career Information Center
CIP - Capital Improvement Program
CMP - Congestion Management Program
CNG - Compressed Natural Gas
CORE - Community Oriented Response and Enforce -
ment
CPI - Consumer Price Index
CPTED - Crime Prevention through Environmental
Des
ign
CRA - Community Redevelopment Agency
CRM - Customer Relationship Management
CRPTF - Community Redevelopment Property Trust Fund
CSI - Crime Stopping Initiatives
CSMFO - California Society of Municipal Finance Offi-
cers
CSO - Community Service Officer
CSTI - California Specialized Training Institute
CSU - Cal State University DOF - California Depart -
ment of Finance
ED - Economic Development
EDMS - Electronic Document Management Systems
EIA - Energy Information Administration
EIR - Environmental Impact Report
ERAF - Educational Revenue Augmentation Fund
FEMA - Federal Emergency Management Agency
FY - Fiscal Year
FLICS - Film Liaisons in California, Statewide
FLSA - Fair Labor Standards Act
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Appendix
Acronyms
City of Lancaster Proposed Budget
294
FOMC - Federal Open Market Committee
FPPC - Fair Political Practices Commission
FTE - Full-time Equivalent
GAAP - Generally Accepted Accounting Principles
GASB - Governmental Accounting Standards Board
GPCAC - General Plan Citizens Advisory
GFOA - Government Finance Officers Association
GIS - Graphical Imagery System
GDP - Gross Domestic Product
HCD - Housing and Community Development
HERO - California Home Energy Renovation Opportu -
nity
HRIS - Human Resources Information System
IT - Information Technology
ITSP - Information Technology Strategic Plan
JLUS - Joint Land Use Study
LAEDC - Los Angeles County Economic Development
Cor
poration
LAHSA - Los Angeles Homeless Services Authority
LAIF - Local Agency Investment Fund
LASD - Los Angeles County Sheriff’s Department
LBP - Lancaster Business Park
LCE - Lancaster Choice Energy
LCP - Lancaster City Park
LFA - Lancaster Financing Authority
LHA - Lancaster Housing Authority
LLEBG - Local Law Enforcement Block Grant
LNSC - Lancaster National Soccer Center
LPA - Lancaster Power Authority
LPAC - Lancaster Performing Arts Center
LRA - Lancaster Redevelopment Agency
LSA - Lancaster Successor Agency
LSD - Lancaster School District
MCI - Municipal Cost Index
MEA - Master Environmental Assessment
MOAH - The Lancaster Museum of Art and History
MOU - Memorandum of Understanding
MTA - Metropolitan Transportation Authority
O&M - Operations and Maintenance
OMP - Sgt. Steve Owen Memorial Park
OPA - Owner Participation Agreement
OPEB - Other Post-Employment Benefits
OSHA - Occupational Safety and Health Administra -
tion
OTS - Office of Traffic Safety
PACE - Property Assessed Clean Energy
PBID - Property-Based Improvement District
PERS - Public Employees Retirement System
PPI - Producer Price Index
PROP - Proposition
PSAHC - Public Safety Ad Hoc Committee
RFP - Request for Proposals
RFQ - Request for Qualifications
SB - Senate Bill
DRAFT
Appendix
Acronyms
City of Lancaster Proposed Budget
295
SBAP - Small Business Attraction Program
SCAG - Southern California Association of Govern -
ments
SCE - Southern California Edison
SRRE - Source Reduction and Recycling Element
STPL - Surface Transportation Program - Local
TAC - Technical Advisory Committee
TBID - Tourism Business Improvement District
TDA - Transportation Development Act
TOP - Target Oriented Policing
USP - Urban Structure Program
VOP - Volunteers on Patrol
VLF - Vehicle In-Lieu Fee
WHM - Western Hotel Museum
DRAFT
Appendix
Fund Listing
City of Lancaster Proposed Budget
296
Fund Listing
101 GENERAL FUND
111 FLEET INTERNAL SERVICE FUND
112 INFORMATION TECHNOLOGY INTERNAL SERVICE FUND
113 GENERAL LIABILITY INTERNAL SERVICE FUND
120 EMPLOYEE BENEFITS
130 LONG TERM DEBT
140 FIXED ASSETS
141 EQUIPMENT REPLACEMENT
199 COMMUNITY SERVICES FOUNDATION
200 LA COUNTY GRANTS - OTHER
201 AQMD GRANTS
202 MEASURE H
203 DWELLING UNIT/PARK IN-LIEU
204 MEASURE A - HOMELESSNESS
210 MEASURE A
211 MEASURE M
212 MEASURE R - HIGHWAY
213 METRO - LOCAL
214 GAS TAX
215 GAS TAX - SB 1
216 TDA ARTICLE 3 BIKEWAY
217 TDA ARTICLE 8
218 PROPOSITION A
219 PROPOSITION B
220 PROPOSITION C
DRAFT
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Fund Listing
City of Lancaster Proposed Budget
297
221 PROP 42- CONGESTION MGT
222 SURFACE TRANSPORTATION PROGRAM
223 OFFICE OF TRAFFIC SAFETY (OTS)
224 RECYCLING
225 MEASURE R
227 MEASURE M - MSP
230 STATE GRANTS - OTHER
300 FEDERAL GRANTS - OTHER
301 TRAFFIC SAFETY
310 CDBG
311 CDBG-SECTION 108
312 NEIGHBORHOOD STABILIZATION
313 HOME GRANT
314 LOW-MODERATE INCOME HOUSING
401 AGENCY FUND
410 SIGNAL DEVELOPER FEES
411 DRAINAGE DEVELOPER FEES
412 BIOLOGICAL IMPACT FEES
413 URBAN STRUCTURES IMPACT FEE
414 TRAFFIC IMPACT FEES
415 VEHICLE MILES TRVLD IMPACT FEE
416 ZERO NET ENERGY (SOLAR)
417 MARIPOSA LILY IMPACT FEE
420 SEWER MAINTENANCE DISTRICT
421 LANDSCAPE MAINTENANCE DISTRICT
422 LIGHTING MAINTENANCE DISTRICT
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Fund Listing
City of Lancaster Proposed Budget
298
423 DRAINAGE MAINTENANCE DISTRICT
424 RECYCLED WATER FUND
500 LANCASTER POWER AUTHORITY
501 LANCASTER CHOICE ENERGY
510 PERFORMING ARTS CENTER
520 LANCASTER HOUSING AUTHORITY
530 LANCASTER FINANCING AUTHORITY
601 AVAQMD
650 ANTELOPE VALLEY FAIR
840 PARS PENSION TRUST FUND
841 OTHER POST EMPLOYMENT BENEFITS
850 CFD 21-1 PUBLIC SERVICES
851 CFD 89-1 EASTSIDE WATER FUND
852 CFD 90-1 BELLE TIERRA
853 CFD 91-1 QUARTZ HILL
854 CFD 91-2 LANC BUSINESS PARK
856 AD 92-101
857 AD 93-3
990 SUCESSOR AGENCY
991 REDEV OBLIGATION RETIREMENT
992 REDEVELOPMENT DEBT SERVICE
993 SCHOOLS DEBT SERVICE
994 COUNTY DEBT SERVICE
DRAFT
Appendix
Object Code Listing
City of Lancaster Proposed Budget
299
Object Code Listing
Personnel Services - Salary & Benefits
5101 FULL-TIME SALARIES Provides for compensation for full-time, regular employees 5101 FULL-TIME SALARIES Provides for compensation for full-time, regular employees 5103 OVER-TIME SALARIES Provides for compensation for overtime at one and one-half times the regular salary 5104 TEMPORARY SALARIES Provides for compensation for temporary/part-time employees 5105 SALARIES-OTHER Salaries for other type of compensation (Council/Commissions) 5106 SALARIES (OFFSET) To account for salary savings through charge-back to capital project of full-time, regular employees salaries for actual hours worked on projects
5201 HEALTH/DENTAL
INSURANCE
Provides for health and dental insurance for all full-time, regular employees 5202 LIFE INSURANCE Provides for life insurance for all full-time, regular employees 5203 ACCIDENTAL DEATH
DISMEMBER
Provides for supplemental accidental death insurance for all full-time, regular employees 5204 LT/ST DISABILITY Provides for long-term and short-term disability for all full-time, regular employees 5205 FICA/MEDICARE Provides for FICA and Medicare for all employees 5206 CALPERS RETIREMENT Provides for retirement benefits for full-time, regular employees 5207 PENSION
AUGMENTATION
Provides for PARS retirement excess pension
5208 WORKERS'
COMPENSATION
Provides for Worker’s Compensation Insurance coverage
5209 DEFERRED
COMPENSATION
Provides employer and employee paid contributions
5210 H.S.A. CONTRIBUTION Provides employee paid contributions 5211 RETIREE HEALTH
SAVINGS
Provides for RHS contributions
5212 UNEMPLOYMENT Provides for unemployment for all full-time, regular employees 5214 FRINGE BENEFITS Often used for budgetary purposes to account for the financial impact on fringe benefits. 5215 OTHER BENEFITS Provides for other miscellaneous payroll liabilities 5216 FRINGE BENEFITS
(OFFSET)
To account for benefit savings through charge-back to capital project of full-time, regular employees salaries for actual hours worked on projects
5310 OPERATING MATERIALS
& SUPPLIES
Provides for any materials or supplies that allow the department/division to continue day-to- day operations
5311 POSTAGE Provides for mailing expenditures incurred through use of the City postage meter, bulk mailing, UPS, Express Mail
5312 SPECIAL ACTIVITY
SUPPLIES
Provides for special purpose supplies usually unique to the program (PARCS) 5313 ELECTIONS EXPENSE Provides for special purpose supplies usually unique to the program (PARCS) 5314 FUEL Provides for fuel for City owned vehicles
5315 UNIFORMS Provides for required clothing and protective gear for employees, boot/pant allowance 5316 EMERGENCY SUPPLIES Provides for supplies that are related to an emergency cleanup, repairs and maintenance, etc.
5317 GRAFITTI REMOVAL Provides for removal of graffiti on public or private property DRAFT
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Object Code Listing
City of Lancaster Proposed Budget
300
5318 TIDE CLEAN UPS Accounts for supplies and activities specifically for tide cleanups 5319 DONATIONS EXPENSE Accounts for charitable contributions and donations paid to another entity 5320 BULK VEHICLE MAINT
SUPPLIES
Provides for bulk maintenance supplies for City-owned vehicles 5321 VEHICLE OPERATIONS Provides for day-to-day maintenance of City-owned vehicles, also accounts for charge back to divisions for Internal Service Funds allocations
5322 VEHICLE UPFITTING Accounts for additional cost to vehicles to make them fully operational by meeting City standards
5323 ELECTRICAL VEHICLE
CHARGING
Accounts for EV charging cost on City vehicles
5324 ILLEGAL DUMPING Provides for expenditures related to any cleanup or services regarding illegal dumping 5325 ASPHALT OPERATIONS Provides for any materials and supplies relating to asphalt operations 5326 CONCRETE
OPERATIONS
Provides for any materials and supplies relating to concrete operations 5327 HEAVY EQUIPMENT
OPERATIONS
Provides for maintenance agreements and service costs for all large equipment - equipment with an EQ# assigned
5328 PARKWAY OPERATIONS Provides for any materials and supplies relating to parkway operations 5329 T.I.D.E OPERATIONS Provides for any materials and supplies relating to T.I.D.E operations 5330 RENTALS/LEASES Provides for any expenditures relating to rentals and leases on equipment, storage, etc. 5331 MEMORIAL BENCH
EXPENSE
Provides for expenditures relating to the City's Memorial Bench Program 5341 PEG EXPENSE To account for any expense directly related to PEG revenue (usually Communications equipment)
5350 NON-CAPITAL
EQUIPMENT
Provides for tools and equipment valued under $5,000, but a single item minimum of $500 for use by City employees
5351 DRONE (UAV)
OPERATIONS
Provides for any operation costs relating to Public Safety’s drones 5360 COMPUTERS
HARDWARE
To account for hardware expense in IT such as computers, cabling, and other IT assets.
Code is also used to charge back to departments for Internal Service-related costs. 5361 COMPUTERS SOFTWARE Provides for software costs including subscription, upgrades, licenses, etc. 5370 AUDIO VISUALS To account for audio visual expenses 5371 RADIO
COMMUNICATIONS
Provides for any expenditures directly related to radio communications 5400 DUES & MEMBERSHIPS Provides for membership dues in job-related organizations 5409 GENERAL LIABILITY Provides for an annual allocation to departments/divisions for liability owed to the City 5410 LIABILITIES INSURANCE Provides for insurance paid for tangible and intangible property insurance including bonds for employees
5411 INSURANCE PREMIUM Provides for premiums paid for tangible and intangible property insurance including bonds for employees
5412 RECRUITMENT EXPENSE Provides for expenditures occurred in hiring employees - such as newspaper ads, pre- employment physicals, fingerprinting, relocation expenditures 5413 GOVERNMENT FEES/
LICENSES
Provides for expenditures relating to any licenses or fees that are due 5414 PROPERTY TAX ON
LAND
Provides for any property tax that is due on specific land parcels Personnel Services - Salary & Benefits
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Object Code Listing
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301
5501 FURNITURE &
EQUIPMENT DEP
Provides for an annual year-end journal entry for depreciation accumulated throughout the fiscal year for furniture and equipment
5600 MISC EXPENSES Provides for any miscellaneous expenditures that were not expected or foreseen (departments should not be budgeting to this account or using this account on a regular basis)
5610 CASH VARIANCE To expense cash variance for cash collections 5620 BAD DEBT EXPENSE Provides for an annual year-end journal entry for allowance for bad debt 5622 UNCOLLECT INT ON
RECEIVABLES
To account for bas debt on uncollectible interest
5625 PRINCIPAL EXPENSE Expenditures related to payments that reduce the amount of a loan owed 5626 INTEREST EXPENSE Expenditures related to the interest being paid on a loan owed 5655 ASSESSMENTS Provides for any assessment expenditures 5656 GRANT EXPENSE Provides for costs associated with various grant programs 5700 SERVICES Provides for other City services not specific to object codes below 5710 PROFESSIONAL/
TECHNICAL SERVICE
Provides for contracting with a firm or company for outside professional services - these services are of a technical nature where special licensing or education is usually required, such as: accountants, appraisers, engineers, consultants, information technology specialists, etc. Whenever this account is used, a complete description must be included (excludes legal – use 5740)
5720 ADVERTISING Provides for all types of advertising, such as: public hearing notices and other advertising as required by law, community events and the publicity of the City 5722 OPIOID PROGRAM Expenditures related directly to the Opioid program from the program revenues received 5725 SPONSORSHIP EXPENSE Provides for costs associated with other organization’s special community events sponsored by the City
5728 IMPACT PROGRAM Account for specific activities for the IMPACT program (PARCS) 5730 PRINTING/BINDING Provides for outside printing or copying services 5740 LEGAL SERVICES Provides for professional legal services provided to the City 5745 LEGAL CLAIMS Provides for legal claims filed with the City Clerk’s Office 5750 SHERIFFS CONTRACT Provides for police services funded with City general funds 5751 SHERIFF CONTRACT –
SUPPLMENTAL
To account for additional Sheriff relates expenses for special events 5755 LANDSCAPE
CONTRACTS
Provides for the landscape services done, such as labor and materials, by the landscape contracts the City obtains
5780 ANIMAL CONTROL Provides for animal control services 5782 CODE/DEMOLITION
ACTIVITY
Provides for costs associated with repairs required for code enforcement or demolition of properties
5790 REPAIR &
MAINTENANCE
SERVICES
Provides for any expenditures for normal maintenance and upkeep of capital assets that are necessary to keep the assets in their usual condition (land, infrastructure, furniture and equipment, etc.)
5791 STREET LIGHT SERVICES Provides for private maintenance and power necessary to operate all City owned street lights
5792 TRAFFIC SIGNAL
SERVICES
Provides for maintenance of traffic signals within the City limits performed by the City or by contract
5793 EMERGENCY DAMAGE
REPAIRS
Provides for any materials or supplies related to emergency damage repairs Personnel Services - Salary & Benefits
DRAFT
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Object Code Listing
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302
5794 MARKING AND
STRIPING
Provides for painting of traffic control markings on street pavement surfaces 5795 TRAFFIC SIGNAGE Provides for installation and maintenance of all regulatory, informative and directional signs
5796 TRAFFIC SIGNAL-MULTI
JURSTICT
Provides for City's share of the maintenance of traffic signals under the jurisdiction of the State of California and/or County of Los Angeles and performed by the entity 5797 STREET SWEEPING Provides for street sweeping services done within the City limits performed by the City or by contract
5798 VANDALISM Provides for any materials or supplies related to vandalism within the City limits 5799 HAZARDOUS MATERIALS
SERVICES
Account for hazardous cleanup services
5800 WASTE SERVICES Provides waste (trash) services
5801 TELEPHONE Provides for telephone expenditures
5802 WATER Provides for water used by City facilities
5803 GAS Provides for gas used by City facilities
5804 ELECTRIC Provides for electricity used by City facilities 5805 WIRELESS Provides for internet used by City facilities 5806 POWER PURCHASE
EXPENSE
Provides for power purchase expenditures made by Lancaster Choice Energy (LCE) 5807 NEM PAYOUTS To account for NEM payouts for LCE customers 5808 RECYCLED WATER
PURCHASE
Provides for recycled water purchases
5900 MEETINGS &
CONFERENCES
Provides for any direct expenditures related to a meeting or conference admission (ex. tickets or admission expense to attend that meeting or conference) 5910 TRAVEL/MILEAGE
REIMBURSEMENT
Provides for any direct expenditures for lodging and travel to get to conferences and trainings (ex. hotel stays, flights, taxi, Uber)
5911 TUITION
REIMBURSEMENT
Provides for reimbursement of educational expenditures to employees - generally requested by employee and taken on own time
5912 BOOT/PANT
REIMBURSEMENT
Provides for reimbursement of boots/pants paid by the employee 5920 TRAINING Provides for any direct expenditures related to training provided to employees (ex. webinars, courses, in-person trainings)
5930 PUBLICATIONS/
JOURNALS
Provides for books, publications, maps, plans, specifications, and other printed material provided to contractors, other technical or professional groups and citizens 5940 CREDIT CARD CHARGES Provides for credit card payments collected by the City 5999 PCARD PROCESSING Object code reserved for Tyler EERP PCARD processing implementation 6111 FLEET ISF Transfers-out for Fleet ISF (fund to fund) 6112 INFORMATION
TECHNOLOGY ISF
Transfers-out for IT ISF (fund to fund)
6113 GENERAL LIABILITY ISF: Transfers-out for General Liability ISF (fund to fund) Personnel Services - Salary & Benefits
DRAFT
Appendix
Object Code Listing
City of Lancaster Proposed Budget
303
6201 EQUIPMENT
REPLACEMENT
CHARGES
To replace various capital equipment items purchased for over $5,000, that are normally associated with field work
6203 ADMINISTRATIVE
OVERHEAD
Overhead charged per the City wide cost allocation to compensate the cost of overhead from one fund to another, typically funds will be charged overhead to supplement the General Fund and/or overhead charged to outside Agencies for OH costs 6900 OTHER FINANCING
USES
To represent operating transfers out and payments to escrow agents for debt service 6999 INTER-FUND TRANSFERS
OUT
To account for transfers out from fund to fund
7000 DEBT SERVICES – PRIN Provides for expenditures related to debt service principal payments 7010 COST OF ISSUANCE
7100 DEBT SERVICE –
INTEREST
Provides for expenditures related to debt service interest payments 8000 CAPITAL IMPROVEMENT Accounts for Construction in Progress costs, must have a project string attached. 8010 PROPERTY AQUISTION Provides for any property or land that was purchased and acquired 8100 EQUIPMENT &
FURNITURE
Office furniture, normal office equipment, various capital equipment items, and various outdoor furniture and equipment purchased for over $5,000 8200 VEHICLES Trucks, cars, tractors and other motor vehicles purchased for over $5,000, that are capable of self-propelled travel on any City streets
Personnel Services - Salary & Benefits
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Budget Resolutions
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Budget Resolutions
Resolution No. 26-XX
City of Lancaster Proposed Budget
306
Resolution No. 26-XX
DRAFT
Budget Resolutions
Resolution No. 26-XX
City of Lancaster Proposed Budget
307
Resolution No. 26-XX
DRAFT
Budget Resolutions
Resolution No. 26-XX
City of Lancaster Proposed Budget
308
Resolution No. 26-XX
DRAFT
Addendum
Council approved
DRAFT
Council approved appropriations and budget impact adjustments will be listed on this page throughout the fiscal year as they occur.
City of Lancaster Proposed Budget
310
appropriations and budget impact
adjustments will be listed on this
page throughout the fiscal year as
they occur.
DRAFT
DRAFT
Council approved appropriations and budget impact adjustments will be listed on this page throughout the fiscal year as they occur.
City of Lancaster Proposed Budget
312
DRAFT
STAFF REPORT
City of Lancaster
CC 15
6/23/2026
TN
Date:June 23, 2026
To: Mayor Parris and City Council Members
From:Trolis Niebla, City Manager
George N. Harris II, Senior Director/Treasurer – Administrative Services Subject:Approval of Memorandum of Understanding Between the City of Lancaster and the Lancaster Police Officers Association
Recommendations:
1. Adopt Resolution No. ____ approving the Memorandum of Understanding between the City of Lancaster and the Lancaster Police Officers Association for the period of July 1, 2026 through June 30, 2030.
2. Authorize the City Manager or his designee to execute the Memorandum of Understanding on behalf of the City, including all necessary documents, amendments, and provisions, subject the City Attorney approval.
G.C. Section 84308: No
Fiscal Impact:
The proposed Memorandum of Understanding includes salary adjustments, POST incentive compensation, specialty assignment pay, and modifications to overtime calculations under the Fair Labor Standards Act. These provisions will result in increased personnel costs over the term of the agreement.
The estimated fiscal impact of the agreement will be incorporated into future annual operating budgets and long-range financial planning. Funding for these costs will be included through the City's normal budget development process.
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Background:
The City of Lancaster and the Lancaster Police Officers Association (LPOA) have successfully concluded negotiations regarding a successor Memorandum of Understanding (MOU) covering employees represented by the LPOA bargaining unit. The proposed MOU establishes wages, hours, benefits, and other terms and conditions of employment for sworn full-time employees represented by the Association for the period of July 1, 2026 through June 30, 2030.
Representatives of the City and the Association engaged in good-faith negotiations pursuant to the Meyers-Milias-Brown Act and reached a tentative agreement on a four-year MOU. The proposed agreement maintains existing employment protections while incorporating compensation adjustments, enhanced incentive pay opportunities, and operational modifications intended to support recruitment, retention, employee recognition, and effective Police Department operations.
The proposed agreement includes the following key provisions:
• Cost-of-Living Adjustments (COLA):
2.0% effective July 1, 2026
2.0% effective July 1, 2027
4.0% effective July 1, 2028
4.0% effective July 1, 2029
• POST Certificate Incentive Pay:
Intermediate POST Certificate – 5%
Advanced POST Certificate – 5%
Supervisory POST Certificate – 7.5%
• Specialty Assignment Compensation:
Motor Officer Assignment – 5%
Investigator Assignment – 2.5%
Field Training Officer Assignment – 5% while actively assigned a trainee • Fair Labor Standards Act (FLSA) Section 7(k):
Transition from a twenty-eight (28) day work period to a seven (7) day work period for overtime calculation purposes.
The proposed agreement reflects the City's commitment to maintaining competitive compensation and incentive programs for sworn personnel while supporting the City's ability to recruit and retain highly qualified public safety employees.
The tentative agreement has been reviewed by staff and legal counsel and is recommended for approval.
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Attachments:
Resolution No. ____; Memorandum of Understanding Between the City of Lancaster and Lancaster Police Officers Association (July 1, 2026 through June 30, 2030) Lancaster Police Officers Association – Memorandum of Understanding (MOU) 7.1.2026 through 6.30.2030
Resolution No. 26-XX
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RESOLUTION NO. 26-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER, CALIFORNIA APPROVING THE
MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN
THE CITY OF LANCASTER AND THE LANCASTER POLICE
OFFICERS ASSOCIATION (LPOA)
WHEREAS, the City Council is desirous of approving the Memorandum of Understanding between the City of Lancaster and the Lancaster Police Officers Association (LPOA); and WHEREAS, representatives of the City of Lancaster and the Lancaster Police Officers Association have met and conferred in good faith regarding wages, hours, and other terms and conditions of employment; and
WHEREAS, the parties have reached agreement on a Memorandum of Understanding for the period of July 1, 2026 through June 30, 2030.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY RESOLVE, DETERMINE AND FIND AS FOLLOWS:
Section 1. Approve the Memorandum of Understanding between the City of Lancaster and the Lancaster Police Officers Association (LPOA) for the period of July 1, 2026 through June 30, 2030.
Section 2. Authorize the City Manager to execute the Memorandum of Understanding on behalf of the City and to take all actions necessary to implement its provisions.
Section 3. Any Resolution in conflict with provisions stated herein shall be considered superseded by the provisions contained in this Resolution.
Resolution No. 26-XX
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PASSED, APPROVED, and ADOPTED this 23rd day of June, 2026 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
_______________________ ____________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
Resolution No. 26-XX
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Resolution No. 26-XX
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF RESOLUTION
CITY COUNCIL
I, , City of Lancaster, CA, do hereby certify that this is a true and correct copy of the original Resolution No. 22-42, for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this day of .
(seal)
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Memorandum of Understanding
Between
The City of Lancaster
And
Lancaster Police Officers Association
(LPOA)
07-01-2026 through 06-30-2030
i
TABLE OF CONTENTS
Page
ARTICLE 1 ADMINISTRATION...............................................................1
1.01 PREAMBLE...............................................................................................................1
1.02 RECOGNITION .........................................................................................................1
1.03 CONTINUATION OF BENEFITS .................................................................................1
1.04 SEVERABILITY ..........................................................................................................1
1.05 DURATION...............................................................................................................2
1.06 CITY RIGHTS ............................................................................................................2
1.07 EMPLOYEE RIGHTS ..................................................................................................2
1.08 NON-DISCRIMINATION ...........................................................................................2
1.09 ASSOCIATION RELEASE TIME ..................................................................................2 ARTICLE 2 INSURANCE BENEFITS .........................................................3
2.01 MEDICAL, DENTAL, AND VISION INSURANCE FOR ACTIVE EMPLOYEES .................3
2.02 RETIREE HEALTH SAVINGS PLAN (RHS) ...................................................................3
2.03 LIFE INSURANCE AND AD&D ...................................................................................3
2.04 DISABILITY INSURANCE ...........................................................................................4 ARTICLE 3 RETIREMENT BENEFITS .......................................................4
3.01 RETIREMENT FORMULA ..........................................................................................4
3.02 CALPERS CONTRIBUTIONS ......................................................................................4
3.03 ADDITIONAL RETIREMENT BENEFITS/DEFERRED COMPENSATION ........................4 ARTICLE 4 LEAVE BENEFITS..................................................................4
4.01 VACATION LEAVE ....................................................................................................4
4.02 HOLIDAYS ................................................................................................................4
4.03 SICK LEAVE ..............................................................................................................4
4.04 OTHER LEAVE ..........................................................................................................5
4.05 CATASTROPHIC LEAVE DONATION PROGRAM........................................................5
4.06 INDUSTRIAL LEAVE..................................................................................................5 ARTICLE 5 SALARY ...............................................................................5 ii
5.01 SALARY ....................................................................................................................5
5.02 DEFINITIONS............................................................................................................5
5.03 CALCULATION OF BENEFITS ....................................................................................6 ARTICLE 6 BILINGUAL PAY ...................................................................6
6.01 BILINGUAL...............................................................................................................6 ARTICLE 7 SPECIAL ASSIGNMENT PAYS................................................6
7.01 FIELD TRAINING OFFICER ........................................................................................6
7.02 MOTORCYCLE OFFICER ...........................................................................................6
7.03 INVESTIGATOR ........................................................................................................7 ARTICLE 8 POST CERTIFICATE PAYS......................................................7
8.01 POST CERTIFICATE PAYS..........................................................................................7 ARTICLE 9 UNIFORMS..........................................................................8
9.01 UNIFORMS ..............................................................................................................8 ARTICLE 10 OVERTIME & OTHER COMPENSATION...............................8
10.01 OVERTIME ...............................................................................................................8
10.02 COMPENSATORY TIME OFF.....................................................................................8
10.03 CALL BACK COMPENSATION ...................................................................................9
10.04 ON-CALL/STAND-BY FOR COURT ............................................................................9
10.05 COURT APPEARANCE PAY .......................................................................................9 ARTICLE 11 TEMPORARY OUT-OF-CLASS PAY ......................................9
11.01 TEMPORARY APPOINTMENT AND OUT-OF-CLASS PAY...........................................9 ARTICLE 12 SHIFT SELECTION.............................................................10
12.01 SHIFT SELECTION...................................................................................................10 ARTICLE 13 LAYOFFS..........................................................................10
13.01 LAYOFFS ................................................................................................................10 ARTICLE 14 ASSOCIATION BUSINESS..................................................10
14.01 ACCESS TO WORK LOCATIONS..............................................................................10
14.02 DUES DEDUCTION .................................................................................................10 iii
14.03 NEW EMPLOYEE ORIENTATION ............................................................................11
14.04 PUBLICATION OF AGREEMENT .............................................................................11 ARTICLE 15 MISCELLANEOUS.............................................................11
15.01 ENTIRE MEMORANDUM OF UNDERSTANDING ....................................................11
15.02 WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT ..........................12
15.03 EMERGENCY WAIVER PROVISION.........................................................................12
15.04 SEPARABILITY ........................................................................................................12
15.05 SUCCESSOR MOU..................................................................................................12 iii
1 ARTICLE 1 ADMINISTRATION
1.01 PREAMBLE
This Memorandum of Understanding (“MOU” or “Agreement”), by and between the Lancaster Police Officers Association (“Association” or “LPOA”) and the City of Lancaster (“City”) (collectively referred to as “the Parties”), is entered into for the purpose of promoting fair and harmonious relations; establishing a fair, just, equitable, and peaceful procedure for the resolution of disputes; and setting forth wages, hours, and other terms and conditions of employment for employees within the bargaining unit.
1.02 RECOGNITION
Pursuant to the Meyers-Milias-Brown Act, the City recognizes the Lancaster Police Officers Association (Association) as the exclusive bargaining representative for the purpose of meeting and conferring with respect to wages, hours, and other terms and conditions of employment for sworn full-time employees of the Lancaster Police Department in the classifications of Police Officer and Police Sergeant, and any other sworn full-time peace officer classifications at the rank of Police Sergeant or below that may, from time to time, be added to the unit by the City or determined by the Public Employment Relations Board (PERB).
The term “employee” or “employees,” as used in this MOU, shall refer solely to employees within the recognized bargaining unit described above.
1.03 CONTINUATION OF BENEFITS
This MOU is intended both as the final expression of the agreement between the parties with respect to the included terms and as a complete and exclusive statement of the terms of this MOU. No amendment, alteration, understanding, variation, waiver or modification of any terms of provisions of this MOU shall in any manner be binding upon the parties unless made and executed in writing between the parties hereto and approved and implemented by the City Council.
Terms and conditions of employment as specified in this MOU shall remain in full force and effect during the term of this MOU unless modified pursuant to the above paragraph or as otherwise provided by law.
1.04 SEVERABILITY
This MOU is subject to all applicable federal, state, and local laws. If any provision is held invalid or unenforceable, such provision shall be severed and the remainder of the MOU shall remain in full force and effect.
2 1.05 DURATION
This MOU shall be effective from July 1, 2026 through June 30, 2030. All terms shall remain in effect until a successor agreement is reached, unless otherwise provided herein or as otherwise provided by law.
1.06 CITY RIGHTS
The parties mutually recognize that the City reserves, retains, and is vested with, solely and exclusively, all rights of management which have not been expressly abridged by specific provision or by law, to manage the City, as such rights existed prior to the execution of a MOU, and/or as set forth in the City’s Personnel Rules and Regulations. The City’s rights under this section may not be grieved.
1.07 EMPLOYEE RIGHTS
Employees shall have the right to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer- employee relations including but not limited to wages, hours, and other terms and condition of employment. Employees also shall have the right to refuse to join or participate in the activities of employee organizations and shall have the right to represent themselves individually in their employment relations with the City. No employee shall be interfered with, intimidated, restrained, coerced, retaliated or discriminated against by the City or by any employee organization because of the exercise of these rights.
1.08 NON-DISCRIMINATION
The parties shall treat all employees in employment matters without regard to race, color, religion, sex, age, national origin, disability, sexual orientation, Union activity or any other status protected by state or federal law. This section is not subject to the City’s grievance procedures.
1.09 ASSOCIATION RELEASE TIME
The City shall provide the Association with a total of 350 hours of paid release time per fiscal for use by designated Association Board members to conduct Association business within the lawful scope of representation, including grievance processing, disciplinary representation, meet and confer activities, labor-management meetings, and related preparation. Release time shall be requested in advance and shall not be unreasonably denied, subject to operational needs of the Department. Hours shall be deducted from the annual bank on an hour-for-hour basis. 3 ARTICLE 2 INSURANCE BENEFITS
2.01 MEDICAL, DENTAL, AND VISION INSURANCE FOR ACTIVE EMPLOYEES The City shall provide medical, dental, and vision insurance benefits. Current carriers include United Healthcare PPO, United Healthcare HMO, Kaiser HMO, and MetLife Dental and Vision.
Employees shall receive no-cost family HMO medical, family dental, and family vision coverage, or no-cost individual PPO medical, family dental, and family vision coverage.
Employees electing PPO medical coverage for Employee +1 or Family shall contribute the following via payroll deduction:
Employee +1 PPO Medical: $867.74 per pay period ($1,735.48 per month) Family PPO Medical: $1,227.85 per pay period ($2,455.70 per month) Family dental and family vision coverage shall be paid at 100% by the City.
Employee contributions shall remained fixed at the above amounts during the course of the Agreement even if the plan premium costs rise. The City reserves the right to select different PPO and HMO plan carriers.
2.02 RETIREE HEALTH SAVINGS PLAN (RHS)
The City shall contribute $175.00 per month into a Retiree Health Savings (RHS) account for eligible employees. The RHS plan shall have a five (5) year vesting period and may be used exclusively for qualifying medical expenses.
In addition, employees enrolled in employee-only HMO or PPO medical, dental, and vision coverage shall receive $75.00 per month into an RHS account. Employees who opt out of all City medical, dental, and vision coverage shall receive $175.00 per month into an RHS account.
During the term of this Agreement, if the City provides any other employee unit with an increase to the City’s monthly contribution to the RHS account, employees in this bargaining unit shall receive an equivalent increase. Such increase shall be effective on the same date as provided to the other bargaining unit.
2.03 LIFE INSURANCE AND AD&D
The City shall pay 100% of the premium for life insurance and accidental death and dismemberment coverage in the amount of $100,000 or one (1) times annual salary up to $225,000, whichever is greater.
4 2.04 DISABILITY INSURANCE
The City participates in the California State Disability Insurance (SDI) program (employee-paid) and provides a City-paid supplemental short-term disability plan through MetLife providing 70% of base pay. The City shall also pay 100% of the premium for long-term disability insurance providing 60% of base pay to Social Security normal retirement age.
ARTICLE 3 RETIREMENT BENEFITS
3.01 RETIREMENT FORMULA
Employees shall participate in the California Public Employees’ Retirement System (CalPERS) under the 2.7% @ 57 formula, which applies to both Classic and “New” members.
3.02 CALPERS CONTRIBUTIONS
PEPRA Member Contributions
In accordance with PEPRA, “New” members shall pay, by pre-tax payroll deduction, the full employee contribution of 50% of the total normal cost.
3.03 ADDITIONAL RETIREMENT BENEFITS/DEFERRED COMPENSATION Employees may participate in 457 and Roth IRA plans pursuant to IRS limits.
The City shall offer a deferred compensation plan pursuant to Internal Revenue Code Section 457(b). Employees are eligible to participate immediately upon hire and may adjust contributions in accordance with plan rules. Employees are not eligible to participate in a 401(a) plan.
ARTICLE 4 LEAVE BENEFITS
4.01 VACATION LEAVE
Employees shall receive vacation leave pursuant to the City’s Personnel Rules and Regulations.
4.02 HOLIDAYS
Employees shall receive paid holidays pursuant to the City’s Personnel Rules and Regulations.
4.03 SICK LEAVE
Employees shall receive sick leave pursuant to the City’s Personnel Rules and Regulations. 5 4.04 OTHER LEAVE
All other leaves, including but not limited to, bereavement leave, family and medical care leave, jury duty, military leave, reproductive loss leave, and compensatory time off, shall be provided in accordance with City policies and applicable law.
4.05 CATASTROPHIC LEAVE DONATION PROGRAM
Employees will be eligible for catastrophic leave donations pursuant to the City’s Catastrophic Leave Donation policy.
4.06 INDUSTRIAL LEAVE
Industrial injury and illness leaves shall be governed by existing guidelines in the City’s “Sick Leave with Pay for Illness or Injury Sustained in the Course of Employment” policy as set forth in the City’s existing personnel policy handbook, and any other City policies and laws as may be applicable.
If an employee receives Workers’ Compensation disability payments to which the employee is not entitled while on Labor Code 4850 leave, the employee shall be obligated to deposit the erroneously paid disability payments with the City for return to the appropriate entity.
ARTICLE 5 SALARY
5.01 SALARY
Base Salary for classifications in the bargaining unit will receive a Cost of Living Adjustment (COLA) as follows:
Effective July 1, 2026, an across the board increase of two percent (2%).
Effective July 1, 2027, an across the board increase of two percent (2%).
Effective July 1, 2028, an across the board increase of four percent (4%).
Effective July 1, 2029, an across the board increase of four percent (4%).
Base Salary for each bargaining classification is set forth in Appendix A – Salary Schedule.
5.02 DEFINITIONS
As used in this MOU, “Base Salary” means the salary classification, range, and step to which an employee is assigned. It excludes any additional allowances, special pays and non-cash benefits.
As used in this MOU, “Regular Rate of Pay” shall be defined in the Fair Labor Standards Act. 6 5.03 CALCULATION OF BENEFITS
If applicable, benefits that are a percentage of Base Salary will be applied to the employee’s Base Salary only. If an employee is entitled to multiple percentage-based benefits, each benefit will be calculated against Base Salary independently (i.e., benefits will not be compounded).
ARTICLE 6 BILINGUAL PAY
6.01 BILINGUAL
The City shall provide Bilingual Pay of $50 per month to employees that satisfy the following conditions:
1. Employee has satisfactorily demonstrated to the City his/her fluency in the Spanish language, based on written and/or oral testing procedures as selected by the City; and
2. Employee is required in the normal course of his/her duties to communicate in Spanish with members of the public, as determined by the Department Head and approved in writing by the City Manager.
To the extent permitted by law, this pay shall be reported to CalPERS as compensation earnable and pensionable compensation pursuant to C.C.R. §571(a)(4) and C.C.R. §571.1(b)(3), Bilingual Premium.
ARTICLE 7 SPECIAL ASSIGNMENT PAYS
The Special Assignment Pays listed below shall each be applied independently to Base Salary.
7.01 FIELD TRAINING OFFICER
The City shall provide special assignment pay to any sworn Police Officer whom the Department designates as a Field Training Officer (FTO) in the amount of five percent (5%) above his or her Base Salary, while assigned to a trainee.
To the extent permitted by law, this pay shall be reported to CalPERS as compensation earnable and pensionable compensation pursuant to C.C.R. §571(a)(4) and C.C.R. §571.1(b)(3), Training Premium.
7.02 MOTORCYCLE OFFICER
The City shall provide special assignment pay to any sworn employee who is POST-certified to work as a Motorcycle Officer, and who is routinely and consistently assigned to direct traffic, in the amount of five percent (5%) above that employee’s Base Salary. 7 To the extent permitted by law, this pay shall be reported to CalPERS as compensation earnable and pensionable compensation pursuant to C.C.R. §571(a)(4) and C.C.R. §571.1(b)(3), Motorcycle Patrol Premium.
7.03 INVESTIGATOR
The City shall provide special assignment pay to any sworn employee who is routinely and consistently assigned to analyze crime or investigative accidents, and who possesses the relevant POST certification for their specialized investigative role, in the amount of two and a half percent (2.5%) above that employee’s Base Salary.
To the extent permitted by law, this pay shall be reported to CalPERS as compensation earnable and pensionable compensation pursuant to C.C.R. §571(a)(4) and C.C.R. §571.1(b)(3), Police Investigator Premium.
ARTICLE 8 POST CERTIFICATE PAYS
8.01 POST CERTIFICATE PAYS
To receive Post Certificate Pay, employees must present certificates or degrees to the City’s Personnel Office for verification and payroll processing. The employee shall be paid effective from the date the certificate or degree was officially received by the Personnel Office. Transcripts shall not be accepted in lieu of eligible certificates or degrees.
The City shall provide Post Certificate Pay as follows:
• Employees with an Intermediate POST certificate will receive an additional five percent (5%) above their Base Salary.
• Employees with an Advanced POST certificate will receive an additional five (5%) percent above their Base Salary.
• Employees with a Supervisory POST certificate will receive an additional seven and one-half (7.5%) above their Base Salary.
An employee who possesses more than one of the certificates above shall receive the pay for each certificate possessed.
To the extent permitted by law, this pay shall be reported to CalPERS as compensation earnable and pensionable compensation pursuant to 2 C.C.R. §571(a)(2) and 2 C.C.R. §571.1(b)(2), Peace Officer Standard Training (POST) Certificate Pay, as applicable. 8 ARTICLE 3 UNIFORMS
3.01 UNIFORMS
The City shall provide required uniforms and safety equipment. To the extent required by law, the value of the provided non-safety uniform items will be reported to CalPERS as special compensation pursuant to 2 C.C.R. §571(a)(5), up to a maximum reported value of $2000 per fiscal year.
ARTICLE 4 OVERTIME & OTHER COMPENSATION
4.01 OVERTIME
The City of Lancaster shall comply fully with the 7(k) exemption under the Federal Fair Labor Standards Act (FLSA), as well as other provisions of the FLSA as may be amended from time to time.
In accordance with the FLSA 7(k) exemption, the standard work period for Association members shall be seven (7) days, with overtime paid for work performed in excess of 43 hours within the 7-day work period. Paid time off types listed in Article 4 shall be considered as time worked for the purpose of calculating overtime during each 7-day work period.
Work schedules shall be determined by the Chief of Police in accordance with operational needs and priorities, and may be changed at any time subject to his/her discretion. City will provide employees with seven days advance notice when work schedule are modified for non- emergency purposes. Work schedules shall include a 30-minute paid meal period for any shift equal to or greater than 8 hours.
4.02 COMPENSATORY TIME OFF
Employees are permitted to accrue up to two hundred and eighty (280) hours of compensatory time off at any given time. Compensatory time off shall accrue at the rate of one and one-half (1.5) hours for each hour of overtime worked. An employee shall be permitted to use accrued but unused compensatory time off in compliance with the requirements of the Fair Labor Standards Act.
At the end of each fiscal year, accrued compensatory time off will be automatically cashed out up to a maximum of one hundred (100) hours, with any remainder permitted to be carried over into the next fiscal year. Such cash out shall be paid at the employee’s regular rate of pay in effect at the time of cash out and shall be administered in a manner consistent with the Fair Labor Standards Act.
9 10.03 CALL BACK COMPENSATION
Any unit employee called back to work other than as a continuation (immediately preceding or following) of his/her regular established work schedule, shall be paid call back compensation as follows:
1. When the employee is required to physically report for duty, the employee shall receive one and one-half (1.5) times the Regular Rate of Pay for the actual time worked, with a minimum of three (3) hours.
2. When the employee is required to perform work by phone or computer, the employee shall receive one and one half (1.5) times the Regular Rate of Pay for the actual time worked, with a minimum of one (1) hour. Telephone calls under 10 minutes each day shall be deemed de minimus and receive no compensation, unless otherwise required by law to be paid as actual time worked.
10.04 ON-CALL/STAND-BY FOR COURT
Employees who, during their off-duty hours, are scheduled to appear in court on behalf of the City shall be paid at one and one-half (1.5) times their Regular Rate of Pay for two (2) hours for the morning session and two (2) hours for the afternoon session.
If an employee is placed on-call for court and is subsequently called to testify during that same court session, the employee shall be paid for the combined duration of the actual time spent on- call and the actual time spent in the court appearance, at time and one-half (1.5) times his/her Regular Rate of Pay, with a minimum of two (2) hours.
10.05 COURT APPEARANCE PAY
Any employee required to appear in court on behalf of the City during off-duty hours, shall be paid at one and one-half (1.5) times his/her Regular Rate of Pay for the duration of the court appearance, with a minimum of two (2) hours.
ARTICLE 11 TEMPORARY OUT-OF-CLASS PAY
11.01 TEMPORARY APPOINTMENT AND OUT-OF-CLASS PAY
When approved by the City Manager, a non-probationary employee may be temporarily appointed to a higher classification which is vacant or held by an employee on a leave of absence for longer than 30 continuous days. Such appointment shall not exceed one year. If the temporary appointment is made to a position that is vacant during an active recruitment for a permanent appointment, the limitations on hours and reporting requirements pursuant to Government Code section 20480 shall also apply.
10 Following ten working days into the temporary appointment, the employee shall be paid at the first step of the range for the higher classification, or at 5% above the employee's current salary, whichever is greater (“out of class pay”). All other benefits shall remain unchanged.
To the extent required by law, this pay shall be reported to CalPERS pursuant to 2 C.C.R. §571(a)(3), Temporary Upgrade Pay, as applicable.
ARTICLE 5 SHIFT SELECTION
5.01 SHIFT SELECTION
Employees shall bid shifts by seniority, according to their time in rank.
ARTICLE 6 LAYOFFS
6.01 LAYOFFS
Layoffs shall be governed by the City’s Personnel Rules and Regulations.
ARTICLE 7 ASSOCIATION BUSINESS
7.01 ACCESS TO WORK LOCATIONS
Reasonable access to employee work locations shall be granted to officers of the Association and its official representatives for the purpose of processing grievances or contacting members of the Association concerning business within the scope of representation. Such officers or representatives shall not enter any work location without the consent of the City Manager or his/her authorized representative. Access shall be restricted so as not to interfere with the normal operations of the Department or with established safety or security requirements. The Association and its members shall be permitted to communicate with one another using the City’s e-mail system, provided, however, that such communications are subject to the City’s “Computer Resources Policy” regarding electronic mail and the Internet. Violations of that policy will subject the offender to reasonable disciplinary action as stipulated in the said policy.
7.02 DUES DEDUCTION
The Association will maintain records of employee authorizations for dues deductions and will provide the City with information regarding the amount of dues and the list of employees who have authorized dues deductions. The City agrees that during the term of this MOU, it will deduct monies from employees pursuant to notice from the Association certifying that it has received signed authorizations from the employees authorizing these deductions.
The City will rely upon the information provided by the Association in processing dues deductions from the pay of unit members. The dues deductions shall be remitted to the Association each bi- weekly pay period. No deduction of dues shall be made during any pay period in which an 11 employee’s earnings, after all other deductions are made, are insufficient to cover the full amount of the dues.
The Association shall provide written notice to the City at least 14 calendar days before a change in the amount of dues and identify the changed amounts.
The Association shall indemnify, defend, and hold the City harmless from and against any liability arising in any forum, whether judicial, administrative, or otherwise, from any claims, demands, or other actions relating to the City’s compliance with any obligations imposed under this Article, including but not limited to deduction of membership dues and the Association’s use of monies collected under these provisions. The City reserves the right to select its own counsel for its defense at the Association’s expense. instituted against the City on account of check-off of employee association dues. In addition, the Association shall refund the City any amounts paid in error upon presentation of supporting evidence.
14.03 NEW EMPLOYEE ORIENTATION
City will provide Association not less than 10 days' notice in advance of a new employee orientation, except that a shorter notice may be provided as agreed to in writing, when there is an urgent need critical to the employer's operations that was not reasonably foreseeable.
If a new employee orientation has not occurred within 30 days of a newly hired employee's start date, and the new employee is working in person, the Association shall be entitled to schedule an in-person meeting with the new employee at the worksite for up to 30 minutes on paid time.
14.04 PUBLICATION OF AGREEMENT
It is agreed that the City shall furnish each unit employee one printed or digital copy of this MOU.
ARTICLE 15 MISCELLANEOUS
15.01 ENTIRE MEMORANDUM OF UNDERSTANDING
It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements and memorandums of agreement, or memorandums of understanding, or contrary salary and/or personnel resolutions or Administrative Codes, provisions of the City, oral or written, expressed or implied, between the parties, and shall govern the entire relationship, and shall be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with Federal or State law.
Notwithstanding the provisions of Section l, there exists within the City certain personnel rules and regulations and departmental rules and regulations. To the extent that this MOU does not specifically contradict these personnel rules and regulations or departmental rules and regulations or City ordinances, they shall continue subject to being changed by the City in accordance with the exercise of City rights under this MOU and applicable State law. 12 15.02 WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT Except where required by the terms of this MOU, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours, and terms and conditions of employment, whether or not covered by this Memorandum or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU.
Notwithstanding the above, the parties mutually agree that, in the event there is a substantive change to the City’s mutual aid arrangement or agreement with the Los Angeles Sheriff Department that materially impacts one or more sections of this MOU, such impact(s) will be discussed between the City and LPOA upon the request of either party.
15.03 EMERGENCY WAIVER PROVISION
In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this MOU or the Personnel Rules and Regulations (Employee Handbook) of the City which restrict the City's ability to respond to these emergencies shall be suspended for the duration of such emergency.
After the emergency is over, the Union shall have the right to meet and confer with the City regarding the impact on employees of the suspension of these provisions in the MOU and any Personnel Rules and policies.
15.04 SEPARABILITY
Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU.
15.05 SUCCESSOR MOU
In the event LPOA desires to meet and confer in good faith on the provisions of a successor MOU, it shall serve upon the City, not later than 180 days prior to its expiration, its written request to commence meeting and conferring in good faith as well as its full and entire written proposal for such successor MOU. Upon receipt of such written notice and proposals, the parties shall utilize their best efforts to commence meeting and conferring by January 1, 2030. 2 CITY OF LANCASTER:
_________________________________
Trolis Niebla
City Manager
_________________________________
George Harris
Senior Director / Treasurer – Administrative Services
LANCASTER POLICE OFFICERS ASSOCIATION:
____________________________________
Brian Wilson
Police Officer
____________________________________
Jeremy Talbot
Sergeant
2 3
APPENDIX A
BASE SALARIES
Salary Schedule
Fiscal Year 2026-2027
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $52.93 H - $55.58 H - $58.36 H - $61.27 H - $64.33 H - $67.55Police Officer M - $9,174.53 M - $9,633.87 M - $10,115.73 M - $10,620.13 M - $11,150.53 M - $11,708.67 H - $62.56 H - $65.69 H - $68.97 H - $72.41 H - $76.04 H - $79.85Sergeant M - $10,843.73 M - $11,386.27 M - $11,954.80 M - $12,551.07 M - $13,180.27 M - $13,840.67 Salary Schedule
Fiscal Year 2027-2028
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $53.99 H - $56.69 H - $59.53 H - $62.50 H - $65.62 H - $68.90Police Officer M - $9,358.27 M - $9,826.27 M - $10,318.53 M - $10,833.33 M - $11,374.13 M - $11,942.67 H - $63.81 H - $67.00 H - $70.35 H - $73.86 H - $77.56 H - $81.45Sergeant M - $11,060.40 M - $11,613.33 M - $12,194.00 M - $12,802.40 M - $13,443.73 M - $14,118.00 Salary Schedule
Fiscal Year 2028-2029
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $56.15 H - $58.96 H - $61.91 H - $65.00 H - $68.24 H - $71.66Police Officer M - $9,732.67 M - $10,219.73 M - $10,731.07 M - $11,266.67 M - $11,828.27 M - $12,421.07 H - $66.36 H - $69.68 H - $73.16 H - $76.81 H - $80.66 H - $84.71Sergeant M - $11,502.40 M - $12,077.87 M - $12,681.07 M - $13,313.73 M - $13,981.07 M - $14,683.07 Salary Schedule
Fiscal Year 2029-2030
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $58.40 H - $61.32 H - $64.39 H - $67.60 H - $70.97 H - $74.53Police Officer M - $10,122.67 M - $10,628.80 M - $11,160.93 M - $11,717.33 M - $12,301.47 M - $12,918.53 H - $69.01 H - $72.47 H - $76.09 H - $79.88 H - $83.89 H - $88.10Sergeant M - $11,961.73 M - $12,561.47 M - $13,188.93 M - $13,845.87 M - $14,540.93 M - $15,270.67
STAFF REPORT
City of Lancaster
CC 16
6/23/2026
TN
Date:June 23, 2026
To: Mayor Parris and City Council Members
From:Trolis Niebla, City Manager
George N. Harris II, Senior Director/Treasurer – Administrative Services Subject:Approval of Memorandum of Understanding Between the City of Lancaster and California Teamsters Public, Professional and Medical Employees Union, Local 986
Recommendations:
1. Adopt Resolution No. ____, approving the Memorandum of Understanding (MOU) between the City of Lancaster and the California Teamsters Public, Professional and Medical Employees Union, Local 986, for the period of July 1, 2026, through June 30, 2030.
2. Authorize the City Manager or his designee to execute the Memorandum of Understanding on behalf of the City, including all necessary documents, amendments, and provisions, subject to the City Attorneys approval.
G.C. Section 84308: No
Fiscal Impact:
The proposed MOU will result in increased personnel costs associated with negotiated salary adjustments, longevity incentive pay, enhanced overtime provisions, healthcare benefits, and RHS contributions over the four-year term of the agreement. 2 4
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The estimated fiscal impact of the agreement is approximately:
Approximate increased cost compared to previous Fiscal YearYear Union Entire City FY 2026-2027* $353,688.77 $1,743,056.04
FY 2027-2028** $224,691.04 $1,134,939.09
FY 2028-2029** $457,368.08 $2,309,706.39
FY 2029-2030** $473,633.38 $2,390,846.61
*Fiscal Year 2026-2027 amounts are estimates based on current staffing levels, salary schedules, benefit rates, and projected overtime usage. Actual costs may vary due to changes in staffing, overtime utilization, and health insurance premium rates. **Fiscal Year 2027-2028 through Fiscal Year 2029-2030 amounts are long-range projections based on current assumptions regarding staffing levels, negotiated compensation increases, and benefit costs.
Actual expenditures may differ due to employee turnover, vacancies, retirements, position additions or deletions, overtime utilization, health insurance premium changes, and other operational factors.
The City has utilized reasonable assumptions in developing these projections; however, the estimates should be considered planning-level forecasts rather than guaranteed expenditures. The actual fiscal impact will be determined through the annual budget process and may differ from the amounts reflected above.
Funding for these costs will be incorporated into the City's annual operating budgets and financial planning process.
Strategic Plan Impact
Approval of the proposed MOU supports the City's strategic goals related to organizational excellence, workforce stability, employee retention, and delivery of high-quality public services.
The agreement provides competitive compensation and benefits necessary to attract and retain qualified employees while maintaining effective municipal operations.
Environmental Review
This action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 15378 of the CEQA Guidelines because it involves organizational and administrative activities that will not result in a direct or indirect physical change to the environment.
Conclusion
The proposed Memorandum of Understanding represents a mutually beneficial agreement between the City and Teamsters Local 986. The agreement provides reasonable compensation and benefit enhancements while supporting the City's ability to maintain a skilled and effective workforce.
Staff recommend approval of the MOU and adoption of the accompanying resolution.
Background:
The City of Lancaster and the California Teamsters Public, Professional and Medical Employees Union, Local 986 (Teamsters Local 986), have completed negotiations for a successor Memorandum of Understanding covering employees represented by the bargaining unit.
Representatives of the City and Teamsters Local 986 engaged in good-faith negotiations and have 2 4
3 0
reached a tentative agreement on wages, benefits, and working conditions for a four-year term beginning July 1, 2026, and ending June 30, 2030.
The proposed agreement reflects a balanced approach that supports the City's operational needs while providing competitive compensation and benefits necessary to recruit, retain, and recognize the contributions of represented employees.
Discussion
Major provisions of the proposed MOU include:
Compensation
Cost of Living Adjustments (COLA) to base salary as follows:
2% effective July 1, 2026
2% effective July 1, 2027
4% effective July 1, 2028
4% effective July 1, 2029
Longevity Incentive
The agreement establishes enhanced longevity incentive pay recognizing long-term service to the City:
2.5% upon completion of 10 years of service
5.0% upon completion of 15 years of service
7.5% upon completion of 20 years of service
Overtime Provisions
The agreement modifies call-out overtime minimums to provide additional compensation for employees responding to after-hours work assignments:
Minimum of two (2) hours of overtime compensation for callouts occurring Monday through Thursday
Minimum of four (4) hours of overtime compensation for callouts occurring Friday through Sunday and designated holidays
Additionally, for planned non-emergency events requiring mandatory overtime, the City will provide employees with at least forty-five (45) days’ advance notice whenever practicable.
Vacation Benefits
The agreement enhances vacation accrual opportunities for long-term employees by increasing maximum annual vacation accruals as follows:
180 hours for employees with 11 to 14 years of service 190 hours for employees with 15 to 19 years of service 200 hours for employees with 20 or more years of service 2 4
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Sick Leave Program
The agreement modifies the sick leave payout provision by reducing the required remaining sick leave balance from 320 hours to 160 hours for employees participating in the sick leave cash-out program.
Health Benefits
To assist employees with rising healthcare costs, the City will absorb increases to the Kaiser Family medical plan premium during the term of the agreement.
Retiree Health Savings Plan (RHS)
The City's contribution to the Retiree Health Savings Plan will increase as follows:
Additional $25 per month effective July 2028
Additional $25 per month effective July 2029
Attachments:
1. Resolution No. ____ Approving the Memorandum of Understanding Between the City of Lancaster and California Teamsters Public, Professional and Medical Employees Union, Local 986
2. Memorandum of Understanding (July 1, 2026 – June 30, 2030)
3. Appendix A1 – Salary Structure Teamsters
RESOLUTION NO. 26-XX
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LANCASTER, CALIFORNIA
APPROVING THE MEMORANDUM OF
UNDERSTANDING (MOU) BETWEEN THE
CITY OF LANCASTER AND CALIFORNIA
TEAMSTERS PUBLIC, PROFESSIONAL AND
MEDICAL EMPLOYEES UNION, LOCAL 986
WHEREAS, the City Council is desirous of approving the Memorandum of Understanding between the City of Lancaster and California Teamsters Public, Professional and Medical Employees Union, Local 986; and
WHEREAS, representatives of the City of Lancaster and California Teamsters Public, Professional and Medical Employees Union, Local 986 have met and conferred in good faith regarding wages, hours, and other terms and conditions of employment; and WHEREAS, the parties have reached agreement on a successor Memorandum of Understanding for the period of July 1, 2026 through June 30, 2030.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY RESOLVE, DETERMINE AND FIND AS FOLLOWS:
Section 1. Approve the Memorandum of Understanding between the City of Lancaster and California Teamsters Public, Professional and Medical Employees Union, Local 986 for the period of July 1, 2026 through June 30, 2030.
Section 2. Authorize the City Manager to execute the Memorandum of Understanding on behalf of the City and to take all actions necessary to implement its provisions.
Section 3. Any Resolution in conflict with provisions stated herein shall be considered superseded by the provisions contained in this Resolution.
PASSED, APPROVED, and ADOPTED this 23rd day of June, 2026 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
________________________ ____________________________
ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
Resolution No. 26-XX
6 5
1 3
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF RESOLUTION
CITY COUNCIL
I, , City of Lancaster, CA, do hereby certify that this is a true and correct copy of the original Resolution No. 22-42, for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this day of .
(seal)
CALIFORNIA TEAMSTERS
PUBLIC, PROFESSIONAL, AND MEDICAL EMPLOYEES UNION, LOCAL 986 07/01/2026 THROUGH 06/30/2030
TABLE OF CONTENTS
ARTICLE 1 PREAMBLE 5
ARTICLE 2 RECOGNITION 5
ARTICLE 3 RIGHTS 5
Section 1 Right of Employees 5
Section 2 Rights of Management 5
Section 3 Equal Employment 5
Section 4 Rights of Employees to Representation 6
Section 5 Union Rights 6
ARTICLE 4 UNION ACCESS TO NEW HIRE
ORIENTATION/DUES DEDUCTION 7
Section 1 New Hire Orientation 7
Section 2 Dues Collection 7
Section 3 Records 7
Section 4 Indemnification 8
ARTICLE 5 COMPENSATION PLAN 8
Section 1 Cost of Living Allowance (COLA) 8
Section 2 Salary Increases Based on Merit
and Aligned with Step System 8
Section 3 Merit Increase Effective Date 9
Section 4 Performance Evaluation Response 9
Section 5 Longevity Incentive 9
ARTICLE 6 OVERTIME 9
Section 1 Compensation 9
Section 2 Overtime List 9
Section 3 Unplanned Overtime Events (Emergency) 10
Section 4 Planned Overtime Events (Non-Emergency) 10
ARTICLE 7 STANDBY & CALLBACK 11
Section 1 Compensation 11
Section 2 Eligibility 12
Section 3 Standby & Callback List(s) 12
Section 4 Conduct While on Standby/Callback
Assignment
13 Section 5 Dispatch 13
Section 6 Standby Duty Kit 13
Section 7 Assigned Vehicles for Standby 13
Section 8 Rest Between Shifts 13
ARTICLE 8 TRANSPORTATION FOR TRAINING 13
ARTICLE 9 REQUEST FOR TIME OFF 14
ARTICLE 10 HEALTH & SUPPLEMENTAL BENEFITS 14
Section 1 Medical, Dental, Vision 14
Section 2 Life Insurance 14
Section 3 Short-Term & Long-Term Disability 14
Section 4 Section 1 25 Benefit Plan 15
Section 5 Retiree Medical 15
Section 6 Retiree Health Saving Plan (RHS) 16
Section 7 Long Term Care Insurance (CalPERS) 16
Section 8 Gift of Time 16
ARTICLE 11 TUITION REIMBURSEMENT 16
ARTICLE 12 UNIFORMS & BOOT/PANT
REIMBURSEMENT
16 Section 1 Work Boots 16
Section 2 Work Pants & Work Shorts 16
Section 3 Reimbursement 17
Section 4 Uniforms 17
ARTICLE 13 RETIREMENT 17
Section 1 Retirement Formula(s) 17
Section 2 Disability Retirement 18
Section 3 Deferred Compensation 19
ARTICLE 14 STEWARDS 19
ARTICLE 15 INSPECTION 19
ARTICLE 16 SAFETY COMMITTEE 19
ARTICLE 17 SHIFT CHANGES 19
ARTICLE 18 GRIEVANCE PROCEDURE 20
Section 1 Definition 20
Section 2 Procedure 20
ARTICLE 19 DISCIPLINE APPEAL PROCEDURE 21
Section 1 Pre-Discipline Procedure 21
Section 2 Appeal Procedure 21
ARTICLE 20 SICK LEAVE 26
Section 1 Use of Sick Leave 26
Section 2 Sick Leave Payment Program 27
Section 3 Sick Leave Pay-Out 27
ARTICLE 21 WORK RELATED INJURY LEAVE 27
ARTICLE 22 VACATION 27
Section 1 Vacation Accrual 27
Section 2 Vacation Payment Program 28
Section 3 Scheduling Vacation 28
ARTICLE 23 HOLIDAYS 28
Section 1 Observed Holidays 28
Section 2 Work Performed on Observed Holiday(s) 29
Section 3 Floating Holidays 29
ARTICLE 24 OTHER PROGRAMS AND MATTERS 29
Section 1 Wellness Program 29
Section 2 Employee Recognition Program 29
Section 3 Confined Space Committee 29
Section 4 Union Membership on City Committees 29
Section 5 Lunch and Break Periods 30
Section 6 Testing 30
Section 7 Certification Pay 30
Section 8 Working Out of Class 31
Section 9 Transfers 31
Section 10 Union Accountability Measure 31
Section 11 Misconduct Investigations 31
Section 12 Apprentice Program 32
ARTICLE 25 FLEX SYSTEM 32
ARTICLE 26 NO STRIKE - NO LOCKOUT 33
ARTICLE 27 LAYOFF PROCEDURES 33
ARTICLE 28 ENTIRE MEMORANDUM OF
UNDERSTANDING
33 Section 1 33
Section 2 33
ARTICLE 29 WAIVER OF BARGAINING DURING
TERM OF THIS AGREEMENT
34 ARTICLE 30 EMERGENCY WAIVER PROVISION 34
ARTICLE 31 SEPARABILITY 34
ARTICLE 32 IMPLEMENTATION 34
ARTICLE 33 RENEGOTIATIONS 34
ARTICLE 34 TERM OF MEMORANDUM OF
UNDERSTANDING
35 36-39
40-41
APPENDIX A
APPENDIX B
CLASSIFICATIONS & PAY RANGES
UNION ACCOUNTABILITY MEASURE
ARTICLE 1: PREAMBLE
This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into by and between the City of Lancaster (hereinafter referred to as "City") and the California Teamsters Public, Professional, and Medical Employees Union, Local 986 (hereinafter referred to as the "Union" or "986 ").
It is the purpose of this MOU to promote and provide for harmonious relations, cooperation and understanding between Management and the employees covered by this MOU; to clarify City ordinances, rules and regulations and administrative procedures, thereby providing an orderly and equitable means of resolving any misunderstanding or differences which may arise under this MOU; and to set forth the understanding of the parties reached as a result of good faith meeting and conferring regarding the wages, hours and other terms and conditions of employment of the employees covered by this MOU. This article is not subject to the grievance procedure.
ARTICLE 2: RECOGNITION
The City recognizes the Union as an organization representing those employees in those classifications as provided in Appendix "A" attached hereto and made a part of this MOU. Recognition is in accordance with Resolution No. 22-10.
ARTICLE 3: RIGHTS
SECTION 1 - Right of Employees
The parties mutually recognize and agree fully to protect the rights of all employees covered by this MOU to join and participate in the activities of the Union and corresponding rights of covered employees to refrain from joining and participating in the activities of the Union, and all other rights guaranteed by law.
No employee shall be interfered with, intimidated, restrained, coerced or discriminated against because of the exercise of these rights or any other rights prescribed by law. This section is not subject to the grievance procedure.
SECTION 2 - Rights of Management
The parties mutually recognize the right of Management as prescribed by law. See Personnel Rules and Regulations (Employee Handbook) for full listing. This section is not subject to the grievance procedure.
SECTION 3 - Eq ual Employment
The provision of this MOU shall be applied to all represented employees without favor or discrimination because of race, color, ancestry, sex, sexual orientation, gender identity, gender expression, age, national origin, physical or mental disability, medical condition, genetic expression, genetic characteristics or information, military or veteran's status, religious creed, marital status, and/or any other category protected by federal and/or state law. This section is not subject to the grievance procedure.
SECTION 4 - Rights of Employees to Representation
The rights described herein do not in any way abridge the rights of a covered employee who desires to represent himself or herself in employee relations with the City, or through the Union, or through any person of his/her choice.
SECTION 5 - Union Rights
The City shall provide for the Union's use, designated bulletin boards where employees in the bargaining unit will have access during regular business hours, subject to the following conditions:
• All postings for bulletin boards must contain the date of posting and the identification of the organization, and
• Union will not post information which is defamatory, derogatory or obscene, subject to the immediate removal of the right to post for a period not to exceed 90 days.
The City will provide separate bulletins boards for the exclusive use of the Union at the following locations:
• Public Works Assembly Room
• Owen Memorial Park Maintenance Building
• Municipal Stadium
All Union business will be conducted by employees and Union representatives outside of established work hours. Nothing herein shall be construed to prevent a Union representative or an employee from contacting the Human Resources Director or other management representatives regarding personnel related matters during work hours. The authorized Union Business Agent shall be given access to work locations during working hours provided that prior to visiting any work location the Union representative shall:
• Contact the Human Resources Director or designate, to state the purpose of the visit and which location he/ she will be visiting, and • The Human Resources Director or designate determines that such visit shall not interfere with the operations of the department.
In the event the requested time and/or location of such visit by the Union Business Agent is denied because it would interfere with the operations of the department, the Human Resources Director or designee shall set an alternate time and/or location for such visit within 72 hours. The Union may schedule after work hours meetings in the City Conference rooms or the City Council Chambers at such times these facilities are not in use by submitting a written request to the appropriate City administrator which shall include date, time, number of people expected, general reason for the meeting, and an acknowledgment that no food or beverages will be consumed in City facilities. Approval will be granted in the same manner as it is granted to other organizations.
ARTICLE 4: UNION ACCESS TO NEW HIRE ORIENTATION/DUES DEDUCTION SECTION 1 - New Employee Orientation
The City agrees to provide a minimum of 10 days' notice to the Union of scheduled orientation for a new hire into a Unit position, when practical, and to provide an opportunity for access to the orientation by the Union.
• "Orientation" refers to any onboarding process, whether conducted in person, online, or through other means.
The Union will have discretion to determine for each orientation whether access will consist of attendance in person by a Union representative for up to 10 minutes, or correspondence from the Union that will be provided to the new hire during orientation.
SECTION 2 - Dues Collection
The Union will maintain records of employee authorizations for dues deductions and will provide the City with information regarding the amount of dues and the list of Unit employees who have authorized dues deductions. The City will rely upon the information provided by the Union in processing dues deductions from the pay of unit members, which shall occur in the first and second pay periods of each month. No deduction of dues shall be made during any pay period in which an employee's earnings, after all other deductions are made, are insufficient to cover the full amount of the dues. • When an employee is in a non-pay status for an entire pay period, no deduction will be made to cover the pay period from future earnings. • In the case of an employee who is in a non-pay status during less than an entire pay period and whose earnings, after all other deductions are made, are insufficient to cover the full amount of the dues or service fee, no deduction shall be made from future earnings to cover the pay period.
The Union shall provide written notice to the City at least 14 calendar days before a change in the amount of dues and identify the changed amounts.
SECTION 3 - Records
The City agrees to provide the Union with the following information for each new hire into a Unit position within 30 days of the hire date, unless the employee declines to provide such information to the Union:
• Employee's name, job title, department, and work location; • Employee's work, home, and personal cellular telephone numbers; • Employee's home address;
• Employee's work and personal e-mail addresses.
At least once per year, or more frequently upon request, the City agrees to provide the Union with the above information for all current Unit employees.
The City shall provide the Union a list of all union members and the amount of dues deducted from their pay for each pay period in which the City remits a check for union dues to the Union.
The Union shall keep an adequate itemized record of its financial transactions and shall make available annually upon request, to the City, and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an operating statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or by a certified public accountant.
SECTION 4 - Indemnification
The Union shall indemnify, defend, and hold the City harmless from and against liability arising in any forum, whether judicial, administrative, or otherwise, from any claims, demands, or other action relating to the City's compliance with any obligations imposed under this agreement, including but not limited to deduction of membership dues and the Union's use of monies collected under these provisions.
ARTICLE 5 - COMPENSATION PLAN
SECTION 1 - Cost of Living Adjustment (COLA)
Salary ranges for all bargaining unit classifications will receive a Cost of Living Adjustment (COLA) as follows:
Effective Date COLA Increase
July 1, 2026 2%
July 1, 2027 2%
July 1, 2028 4%
July 1, 2029 4%
Adjusted salary ranges are shown in Appendix "A".
SECTION 2 - Salary Increases Based on Merit and Aligned with Step System Salary increases are based on merit and aligned with the Step System as outlined in Appendix "B", excluding Cost of Living Adjustments (COLAs) as outlined above. Salary increases based on merit and aligned with the Step System will not adjust the salary range for any position. See Personnel Rules and Regulations (Employee Handbook) for additional details.
Employees who are at the top of the pay range for their job classification are ineligible for salary increases based on merit.
Employees who are NOT at the top of the pay range for their job classification are eligible for the following increases:
Awarded in 1st Pay Period of Each Fiscal Year
Month/Year Awarded for Meets Standards
July 2022 Up to 5%
July 2023 Up to 5%
July 2024 Up to 5%
July 2025 Up to 5%
SECTION 3 - Merit Increase Effective Date
Merit increases will be effective on the first pay period at the beginning of each fiscal year (July) unless such increase is specifically stated to be effective on a later date due to performance-based criteria or leave of absence without pay.
SECTION 4 - Performance Evaluation Response
Employees may, within 30 days of receipt, provide a written response to their performance evaluation which will be attached to said evaluation and placed in their employee file.
SECTION 5 – Longevity Incentive
Effective July 1, 2026, employees with greater than ten years of service will receive additional compensation in the form of longevity pay according to the following schedule:
Following completion of ten (10) years of service, an increase of 2.5% above base salary; Following completion of fifteen (15) years of service, an increase of 5% above base salary; Following completion of twenty (20) years of service, an increase of 7.5% above base salary Longevity pay is not stacked or compounded For example, an employee with 17 years of service receives longevity in the amount of 5%.
For purposes of this section, “years of service” means total years of active full-time employment with the City of Lancaster in any position.
Longevity pay is earned on a continuous and ongoing basis as hours worked, paid out with each pay period, and reported to CalPERS as special compensation.
ARTICLE 6 - OVERTIME
SECTION 1 - Compensation
Time off for paid leaves and holidays shall be considered time worked for overtime purposes.
Authorized overtime shall be compensated for at the rate of one and one-half (1-1/2) times the regular hourly rate of pay. All work (or sick, vacation, holiday or floating holiday leave) in excess of 40 hours per work week shall be considered overtime.
SECTION 2 - Overtime List
An Overtime list will be created for e ach division/section with the most senio r empl oyee placed initially at the top of the list. Employees with specialized knowledge or skills (e.g., Class A/Class B Driver's
License & Tanker endorsement) will be so designated on the list. This list will be maintained and subject to review by each division h ead and the desi gnated Unio n steward in that divisio n/ department.
Overtime will be distributed as equitably as possible. When making assignments, the division/section will first offer the opportunity to the most senior employee with the skills required in the division/ section where the overtime is needed.
Where overtime is required, the employee at the top of the list with the requisite skill will be offered the overtime first, where practical. If said first employee does not take the overtime or cannot be reached, the supervisor/assigned lead will proceed down the overtime list until there is a volunteer. The employee taking the overtime, or an employee declining, or the employee unable to be reached, will then be placed at the bottom of the list. Where there are no volunteers for overtime, or emergency circumstances dictate that it is not in the best interest of the City to follow the above procedure, the assigned lead will notify a supervisor who shall have the right to assign overtime in the manner he/she deems appropriate.
In the event that the overtime assignment is canceled, the employee originally assigned will remain at the top of the list for the next overtime assignment. No employee will lose their place on the list as a result of a canceled overtime assignment.
The overtime procedure shall not apply where the overtime work can only be performed by two or fewer qualified individuals.
SECTION 3 - Unplanned Overtime Events (Emergency)
Emergency shall be defined as any public safety issue; or other unplanned event as determined by the City Manager, Department Head, or their designee. Unplanned overtime is considered a Callback as outlined in Article 8.
Overtime work to meet an e mergency situation does not require advance a pproval, but shal l be certified by the supervisor for timecard approval purposes.
SECTION 4 - Planned Overtime Events (Non-Emergency)
Assignments include, but are not l imited to; City sup ported events such as Streets of Lancaster, Air Show, and Farmers Market and permitted events requiring City services.
Scheduled overtime is not considered a callback. Employees will be paid for actual hours worked.
Opportunities for scheduled overtime shall be posted by event as far in advance as possible and updated as needed. Event managers will send an email notice of the event, once the date and time has been determined, to both Parks and Development Services supervisors. Signup sheets shall be posted in any/all applicable sections by the division/ section responsible for staffing the event. All interested bargaining unit members may signup to work the event.
A scheduled overtime list will be created showing employees signing up for pre-scheduled events (e.g., Poppy Festival, Streets of Lancaster) and other events (e.g., permit events requiring City services, etc.). Any division/ section responsible for staffing the event will give first consideration to their
employees who have signed up to work the event, after making necessary staff assignments. All other employees on the list with the skill required to perform the work shall be contacted before mandatory assignments are made.
Where both Parks and Development Services are participating in the event, the departments may contact employees on either signup sheet once its own sheet has been exhausted.
Scheduled overtime opportunities will be distributed as equitably as possible. Employees accepting or rejecting an offer and employees who cannot be reached will be placed at the bottom of the list. This does not change their placement on the standby/callback lists.
Scheduled overtime opportunities for reoccurring events, e.g., Farmers' Market shall be distributed in the same manner as described above; however, employees will not lose their place on the other overtime assignments in this section.
City will make available a schedule of Planned Overtime Events an annual basis, subject to necessary modifications throughout the year. An employee who is required to work a Planned Overtime Event with less than 45 calendar days of advance notice will receive eight (8) hours of banked compensatory time off in addition to payment for actual hours worked.
ARTICLE 7 - STANDBY & CALLBACK
SECTION 1 - Compensation
An employee assigned to Standby will receive: (Reference Standby Policy for additional information).
• Two (2) hours pay each day in addition to actual time worked, at the overtime rate on Monday, Tuesday, Wednesday and Thursday (excluding designated holidays). An employee will receive four (4) hours pay each day in addition to actual time worked, at the overtime rate on Friday, Saturday, Sunday and all designated holidays as outlined in the Personnel Rules and Regulations (Employee Handbook).
An employee that responds to a Callback will receive:
• A minimum of two (2) hours pay or actual time worked, whichever is greater, at the overtime rate on Monday, Tuesday, Wednesday and Thursday (excluding designated holidays). An employee will receive a minimum of four (4) hours pay or actual time worked, whichever is greater, at the overtime rate on Friday, Saturday, Sunday and all designated holidays as outlined in the Personnel Rules and Regulations (Employee Handbook).
To be eligible for call back pay the employee must physically report to work. Telephone calls do not qualify as a callback. However, if a callback is cancelled later than 15 minutes after the employee responded, the employee will receive minimum the minimum compensation as set forth in this section.
Travel time reporting to and from work does not count towards actual time worked and is not compensated.
All Standby and Callback actual time worked performed on a holiday shall be paid at double- time.
SECTION 2 - Eligibility
To be placed on the Standby/Callback lists eligible employees must have a current performance evaluation of meets standards, have no disciplinary actions, or no more than one (l) corrective action related to attendance within six (6) months of placement on the list. On rare occasions, management retains the right to override eligibility requirements for operational need and/or under emergency circumstances.
Division/department management may determine that an employee who volunteers for Standby/Callback will not be given such assignment (e.g., due to public safety concerns).
SECTION 3 - Stan dby & C allback List(s)
Standby & Callback will be distributed as equitably as possible. When making assignments, the division/section will create a rolling list and first offer the opportunity to the most senior employee with the skills required in the division/section where the overtime is needed. Standby and Callback lists shall be maintained separately and will be created for each division/section with the most senior employee placed initially at the top of the lists. Employees with specialized knowledge or skills (e.g., Class A/Class B Driver's License & Tanker endorsement) will be so designated on the lists. These lists will be maintained and subject to review by each division head and the designated Union steward in that division/ department.
Where Standby and/or Callback is required, the employee at the top of each list with the requisite skill will be offered the Standby/Callback first, where practicable. If said first employee does not take the Standby/Callback or cannot be reached, the supervisor/assigned lead will proceed down the Standby/Callback lists until there is a volunteer. The employee taking the Standby/Callback, or an employee declining the assignment, or the employee unable to be reached, will then be placed at the bottom of the applicable list. Where there are no volunteers for Standby/Callback, or emergency circumstances dictate that it is not in the best interest of the City to follow the above procedure, the assigned lead will notify a supervisor who shall have the right to assign Standby/Callback in the manner he/ she deems appropriate.
There shall be no less and no more than three employees on standby duty each week; one (l) from Parks, and two (2) from Development Services.
If an insufficient number of employees volunteer for a Standby/Callback assignment, City management will make such assignments mandatory and have the authority to assign employees. All employees who are assigned Standby/Callback duty shall serve the assigned week unless prior arrangements with the division/ section supervisor have been approved excusing the assigned employee.
A list of Standby/Callback employees will be made and the employee on the top of the list will be used for the upcoming week. After being on Standby/Callback duty, the employee will go to the bottom of each applicable list.
SECTION 4 - Conduct While on Standby/Callback Assignment • The employee on the Standby/Callback lists shall respond immediately or in a reasonable amount of time when receiving an assignment. A reasonable amount of time is determined by the incident location and the employee's location at the time of the call.
• The employee is required to carry the City assigned phone contained in the duty kit at all times.
• The employee is required to be available and fit for duty while assigned to Standby/Callback.
• The employee assigned to Standby/Callback duty must comply with all City policies and procedures.
• The employee is required to be in uniform while performing duties during the Standby/Callback assignment.
SECTION 5 - Dispatch (Callback assignment)
Callback assignment(s) that require a special skill or ability should only be assigned to an employee that has the appropriate skill, experience and who usually performs those duties.
Only Emergency Services Personnel, City Administration or applicable/ assigned supervisors/leads
may dispatch Callback employee(s).
SECTION 6 - Standby Duty Kit
A Standby employee will be provided and responsible for a Standby Duty Kit, which will contain:
• One Procedure Manual
• One Phone
SECTION 7 - Assi gned Vehicles for Standby
Employees on Standby duty will have use of a City vehicle to travel to and from their residence and to and from the Standby assignment. While not in use for the assignment, the City vehicle must be parked in a secure location at the employee's residence.
SECTION 8 - Rest Between Shifts
An employee who does not get at least a six (6) hour rest period between shifts can request to be excused from all or part of his/her next shift. The time is considered unpaid unless the employee opts to use available paid time off (sick, vacation and/or floating holiday). Approval is determined by the needs of the department and is at the discretion of the supervisor.
ARTICLE 8 - TRANSPORTATION FOR TRAINING
The City shall have the authority to designate the mode of transportation to training activities. The City shall make its best effort to provide or arrange transportation. When traveling for City business, whenever possible, no personal vehicle shall be used.
ARTICLE 9 - REQUEST FOR TIME OFF
In an emergency or a special circumstance, where an employee requests time off without notice, the employee shall notify his/her supervisor as soon as possible. In all other circumstances, the employee shall give a minimum of 72 hours' notice to his/her supervisor prior to using paid time off. The City retains the right to deny any leave request for operational considerations.
ARTICLE 10 - HEALTH & SUPPLEMENTAL BENEFITS
SECTION 1 - Medical, Dental, Vision - Effective January 1, 2022 The City shall provide regular and probationary represented employees:
• Plans at the least cost to the City that are similar or better as offerings for the 2022 calendar year
• No cost family medical, family dental and family vision coverage, or, • No cost individual PPO medical, family dental and family vision coverage Employees who elect not to be covered by the City's medical plan will receive $175.00 per month into a Retiree Health Savings Plan account. Employees who elect medical insurance coverage for only themselves will receive $75.00 per month into a Retiree Health Savings Plan account.
On or after July 1st of each year, upo n giving a thirty (30) day notice, either party may request to enter into discussions to review premium rates and options for cost containment.
The City and the Union agree to work jointly to identify and recommend potential cost-savings measures to reduce future premium increases. It is understood that the City has the sole authority to determine all benefit insurance plans and providers.
SECTION 2 - Life Insurance
The City shall provide represented employees with a minimum of $100,000 or one times annual salary, whichever is greater, life insurance protection through its insurance provider. Employees may purchase additional insurance at the employee's cost where the carrier permits. The City reserves the right to determine the provider of life insurance.
SECTION 3 - Short-Term & Long-Term Disability
The City shall continue to participate in the California State Disability Insurance Program. (SDI). All represented employees are required to contribute the required rate set by the State of California.
In addition, the City shall continue to contribute and pay 100% of the short-term disability insurance premium which shall provide the employee the difference between the amount covered by SDI and at least 70% of the employee's base monthly salary pursuant to the requirements and conditions set forth in the insurance policy with the City. The City reserves its right to determine the provider of short-term disability insurance.
The City shall continue to contribute and pay 100% for the employee long term disability insurance premium which shall provide the employee with 60% of the employee's base monthly salary pursuant to the requirements and conditions set forth in the insurance policy with the City. The City reserves its right to determine the provider of long-term disability insurance.
SECTION 4 - Section 125 Benefit Plan
The City will continue to offer a Section 125 Benefit Plan and provide supplemental insurance products for employees to expand their benefits based on individual needs. Enrollment in supplemental plans is voluntary and the employee is responsible for all premium payments through bi-weekly payroll deductions.
SECTION 5 - Retiree Medical
All regular Represented employees who retire from City service and who were hired into a full-time position on or before June 30, 2009 shall be eligible for a discount on the employee's portion of the medical, dental, and vision premiums.
Years of Service
AGE 5 6 7 8 9 10 11 12 13 14 15+
55-64 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%
65+ older 0% 0% 0% 0% 70% 75% 80% 85% 90% 95% 100%
Represented employees may maintain dependent coverage in the plan at their option and at their expense.
Effective January 1, 2016 employees will no longer earn credit towards the discount on the employee's portion of premiums. Employees shall retain the discount they have accumulated prior to that date. Employees under age 55 will receive credit for the years of service accumulated prior to January 1, 2016 when they become eligible for the discount upon retirement from City service.
As of January 1, 2016, employees with fewer than fifteen (15) years of service will receive a prorated amount of the $175 per month paid to employees who elected not to participate in the program (as of March 1, 2010) as shown in the following chart.
Discount% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%
RHS $ 87.50 78.75 70.00 61.25 52.50 43.75 35.00 26.25 17.50 8.75 All regular represented employees hired on or after July 1, 2009, shall be eligible for a City contribution of $175 per month to the Retiree Health Savings Plan chosen and administered by the City.
Effective July 1, 2028, the City contribution shall be increased to $200 per month. Effective July 1, 2029, the City contribution shall be increased to $225 per month.
SECTION 6 - Retiree Health Saving Plan (RHS)
The City will continue the MissionSquare (formerly ICMA) Retirement Health Savings Plan (RHS) for all groups.
SECTION 7 - Long Term Care Insurance (CalPERS)
The City will contribute up to $90.00 per month towards the California Public Employees Retirement System Long Term Health Care Insurance premium for an employee only. In order to receive this benefit, the employee must be enrolled. CalPERS has decided to temporarily suspend open enrollment for the Long-Term Care Program due to current uncertainty in the long-term care market. Therefore, until further notice, CalPERS is no longer accepting new applications for coverage. Upon retirement this benefit will continue in conformance with above schedule (Article 9, Section 5).
SECTION 8 - Gift of Time
The City will continue the "Gift of Time" program.
ARTICLE 11 - TUITION REIMBURSEMENT
Regular, non-probationary represe nted employee s are eligibl e for tuitio n reimburseme nt in accordance with the Personnel Rules and Regulations (Employee Handbook).
ARTICLE 12 - UNIFORMS & BOOT/PANT REIMBURSEMENT
SECTION 1 - Work Boots
Employees will be required to wear safety work boots with steel/composite toe or shank (as required by the department), that cover the ankle at all times during an employee's working hours. Specific types of safety boots will be established, determined by each division head, and the employee must wear one of these types. Employees not in compliance are subject to discipline. The City reserves the right to modify this boot policy, including but not limited to establishing different types, determining work details where boots shall not be worn, etc., after meeting and conferring with the Union.
SECTION 2 - Work Pants & Work Shorts
Employees are required to wear blue or black denim (Carhartt, Dickies, Levi, Wrangler type) pants/shorts unless the City provides a uniform. An employee does have the option of wearing shorts as long as it does not create a safety hazard or violate OSHA and/or other applicable safety policies or regulations.
Pants and shorts must be hemmed and "cut offs" are pro hibited. Shorts must not be longer than the bottom of the
knee and no shorter than 2 inches above the knee.
Due to the possibility of assignment changes during the work shift, any employee wearing shorts must have a pair of long pants at work to change into should the need arise.
Supervisors are responsible for determining whether it is appropriate for an employee to wear shorts based on daily work assignments. In order to protect employees' legs against the harsh desert sun, it is recommended that all employees wearing shorts also wear sunscreen.
In the event this policy is abused, all parties agree that the program will be terminated.
As stated in the City of Lancaster's "Dress Guidelines," all clothing worn should be clean and in good repair, free from tears, holes and stains at the start of each shift.
Each employee will be responsible for keeping his/her safety boots and pants in good repair.
SECTION 3 - Reimbursement
The City shall provide boot/pant reimbursement up to $600.00 for employees who are NOT provided City issued uniforms, and provide boot reimbursement up to $450.00 for employees who ARE provided City issued uniforms, per fiscal year. Reimbursement request(s) with the associated receipt(s) must be approved by Human Resources and then are submitted to Finance for payment. Reimbursement for boot care (i.e. shoe strings and shoe conditioner) will be approved within reason as determined by Human Resources.
Receipt(s) for reimbursement(s) must be dated within the same fiscal year as the purchase is made and submitted no more than 60 days after the purchase is made in order to be approved for reimbursement.
In lieu of reimbursement, the City shall have an option for purchasing boots and pants in order to assist employee(s) (e.g. open purchase order from local business, etc.). The City shall determine a process and select the vendor(s) for this purpose.
SECTION 4 - Uniforms
The City will maintain an adequate supply of provided uniform items within Parks and Development Services to issue new hires and to replace worn or damaged uniform items of current employees. The supplies will include items such as jackets, sweatshirts, hats, short and long sleeve shirts.
ARTICLE 13 - RETIREMENT
SECTION 1 - Employees are provided retirement benefits through the California Public Employee's Retirement System (CalPERS). The CalPERS benefits summarized here are pursuant to the City's contract with CalPERS, and are subject to and in accordance with the California Public Employee's Retirement Law and the California Public Employees' Pension Reform Act of 2013.
Tier 1 Classic Members: Employees hired on or before June 30, 2012 The 2.7% at 55 Retirement Benefit Formula (Gov. Code § 21354.5), applies to all regular and probationary employees hired on or before June 30, 2012. The City shall contract with CalPERS for the Employer Paid Member Contribution (EPMC) conversion to final pay for the employee's final twelve (12) months of employment (Gov. Code § 20692). The employee will continue to pay, through payroll
deductions, eight percent (8%) of the employer contribution. The City will continue to pay the required employer contribution.
One-Year Final Compensation Period (Gov. Code § 20042). For purposes of determining a retirement benefit, final compensation for employees covered by this section shall be based on the highest annual average compensation earnable during twelve (12) consecutive months of employment.
The monthly employee's contribution for the 1959 Survivor's Benefit, Level 3, shall be borne entirely by the employee (Gov. Code § 21573).
Tier 2 - Classic Members: Employees hired on or after July 1, 2012 or before January 1, 2013, OR after July 1, 2012 who are transferring from other Cal PERS agencies within six months of hire by the City, OR who can establish reciprocity upon joining CalPERS The 2% at 60 Benefit Formula (Gov. Code § 21353), applies to all regular and probationary employees hired on or after July 1, 2012 or before January 1, 2013, OR after July 1, 2012, who are transferring from other CalPERS agencies within six months of hire by the City, or who can establish reciprocity upon joining CalPERS. The City will continue to pay the required employer contribution. The employee will continue to pay, through payroll deductions, the full seven-percent (7%) employee contribution.
One-Year Final Compensation Period (Gov. Code § 20042). For purposes of determining a retirement benefit, final compensation for employees covered by this section shall be based on the highest annual average compensation earnable during twelve (12) consecutive months of employment.
The monthly employee contribution for the 1959 Survivor's Benefit, Level 3, shall be borne entirely by the employee (Gov. Code § 21573).
Tier 3 - PEPRA New
Members
The 2% at 62 Benefit Formula (Gov. Code § 7522.20), applies to all regular and probationary employees hired on or after January 1, 2013. The City will continue to pay the required employer contribution. The employee will continue to pay, through payroll deductions, the full six and one quarter- percent (6.25%) employee contribution.
Three (3) Years Final Compensation Period (Gov. Code § 20037). For purposes of determining a retirement benefit, final compensation for employees covered by this section shall be based on the highest annual average compensation earnable during a thirty-six (36) consecutive month period.
The mo nthly emp loyee co ntribution for the 19 59 Survi vor's Benefit, Le vel 3, shall b e borne entirely by the emp loyee (Gov. Code § 21573).
SECTION 2 - Disabilit y Retirement
The City may request CalPERS to retire an employee who becomes physically or mentally unable to perform the duties of his/her position, or may be subject to further injury if employment is continued. The
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City will engage in the interactive process to determine what, if any reasonable accommodation(s) is available to the employee prior to making any request for disability retirement.
SECTION 3 - Deferred Compensation
Effective June 19, 2022, the City shall contribute 5% to the 401 (a) Mission Square (formerly ICMA) Deferred Compensation Retirement Program for all Represented employees.
The City shall continue to allow employees to contribute to the 457 Mission Square (formerly ICMA) Deferred Compensation Retirement Program for all Represented employees.
Effective July 1, 2019, the City shall allow employees to participate in loan programs offered by Mission Square (formerly ICMA) for the 401 (a) and 457 plans.
ARTICLE 14 - STEWARDS
The City recognizes the right of the Union to designate a maximum of six job stewards and alternates from the bargaining unit. The Union and the City must mutually agree to the addition of a 6th steward. The authority of the job stewards so designated by the Union shall include: investigating and processing grievances on non-work time. In the event the steward cannot process or investigate a grievance on non-work time he/ she shall obtain the prior authorization of the Human Resources Director to use his/her work time for such activities. Authorized work spent handling grievances by the steward shall be considered hours worked for purposes of overtime computation. Stewards must notify Human Resources when requesting to conduct union business during work hours.
ARTICLE 15 - INSPECTION
After seven (7) hours, notice to the City Manager Human Resources Director or his/her designee authorized agents of the Union shall have access to the City facilities during working hours for the purposes of: (1) grievance meetings with City representatives and; (2) investigation of working conditions where safety issues are involved. Under no circumstances shall the authorized agent disrupt an employee's work without prior approval of the supervisor.
ARTICLE 16 - SAFETY COMMITTEE
Represented employees shall be allowed to participate in the City 1 s Safety Committee for the
purpose of providing the safest possible working conditions for all employees. The Committee's membership shall include members selected by the Union from the bargaining unit of the represented Departments.
ARTICLE 17 - SHIFT CHANGES
Where practicable the City will give an employee thirty (30) working days' notice of a shift change. "Shift" is defined as day evening or graveyard.
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ARTICLE 18 - GRIEVANCE PROCEDURE
SECTION 1 - A "grievance" shall be defined as a controversy between the City and the Union or an employee or employees covered by this MOU. Such controversy must pertain to any of the following:
1. Any matter relating to working conditions adversely impacting the employee's ability to perform the job not specifically covered by this MOU, or
2. Any matter involving the interpretation or application of any provision of this MOU.
This Article does not apply to matters of discipline.
SECTION 2. There shal l be an ea rnest effort on the part of both parti es to settle grievances promptly through the steps listed below.
Step 1: (Informal): An employee's grievance must be submitted to the first line supervisor or management representative immediately in charge of the aggrieved employee within fifteen (15) working days after the event giving rise to the grievance, or fifteen (15) working days after the date that he/ she should have been reasonably expected to have had knowledge of the grievance. The supervisor or management representative will give an answer to the employee by the end of the tenth (10) working day following the presentation of the grievance and the giving of such answer will terminate Step 1.
Step 2: If the grievance is not settled at Step 1, the employee may elect to proceed to Step 2 by reducing the grievance to writing. The written grievance shall fully state the facts surrounding the grievance and detail the specific provision of this MOU alleged to have been violated, signed and dated by the employee and presented to the department head or his/her designee within ten (10) working days after termination of Step 1 . A copy of the grievance shall be presented to the Human Resources Director by the employee. A meeting with the employee, shop steward and department head or his/her designee will be arranged at a mutually agreeable location and time to review and discuss the grievance.
Such meeting will take place within ten (10) working days from the date the grievance is received by the department head or his/her designee. The department head or his/her designee may invite other members of management to be present at such meeting. The department head or his/her designee will give a written reply by the end of the fifth (5) work day following the date of the meeting, and the giving of such reply will terminate Step 2.
Step 3: If the grievance is not settled at Step 2, the grievant may elect to proceed to Step 3 of the grievance procedure. The grievant shall have five (5) working days to appeal to Step 3. The grievant or his/her union representative and the City Manager or the appropriate management representative shall within five (5) working days after the appeal from Step 2 arrange a meeting to be held at a mutually agreeable location and time to review and discuss the grievance. Such meeting will take place within ten (10) working days from the date the grievance is referred to Step 3. A decision shall be rendered within ten (10) working days from the date of such meeting. The decision of the City Manager is final and binding.
SECTION 3 - The time limits for filing written formal grievance shall be strictly construed, but may be extended by mutual agreement evidenced, in writing, and signed by a duly authorized representative
of the City and the grieving party. Failure of the grieving party to comply with any of the time limits set forth there under shall constitute waiver and bar further processing of the grievance. Failure of the City to comply with the time limits set forth in this Section shall automatically move the grievance to the next level of the Grievance Procedure. The grieving party may request the assistance of a union representative in presenting a grievance at any level of review or may represent him/herself.
ARTICLE 19 - DISCIPLINE APPEAL PROCEDURE
SECTION 1 - Pre-Discipli ne Procedure
Where a non-probationary unit employee is termi nated, suspend ed, or demoted, the employee will be entitled to the followi ng prior to the discipli ne being imposed.
Prior to the discipline being imposed, the employee will be provided with written notice of the proposed discipline. Such notice shall also contain the date the action is intended to become effective and the specific grounds and particular facts upon which the action is based. Along with this notice, the employee shall be provided with written materials upon which the action is based. The employee shall be afforded the right to respond either orally or in writing or both to the proposed charges within five (5) working days after the date of the notice. (Skelly Rights) SECTION 2 - Ap peal Procedure
Where discipline of dismissal, susp ension without pay of five (5) or more days or demotion is imposed, the foll owing appeal procedure shall apply:
Following a review of a proposed disciplinary action, if discipline is to be imposed, the Human Resources Director shall cause to be served on the employee affected, by registered mail, email or personal delivery, a notice of discipline signed by the appointing power indicating the department head's decision to impose discipline, the specific charges against the employee, that he/she has the right, within ten (10) working days after receipt of this notice, to request a hearing on the charges by filing the request with the Human Resources Director. The City shall have the authority to impose discipline on the effective date indicated in the notice.
If, withi n the ten (10) day appeal period, the employee involved d oes not file said appeal, unless
good cause for fai lure is shown, the action of the City shal l be considered conclusive.
If, within the ten-day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the Human Resources Director, the City and the employee or his/her representative shall have ten (10) working days from the date of the appeal to attempt to mutually agree to a hearing officer. If no agreement is reached, the City shall request a list of third-party neutrals who specialize in employee discipline hearings from the California State Conciliation Service. Within ten (10) days following receipt of the list of hearing officers the parties shall confer to select the hearing officer.
The parties shall alternately strike one name from the list of hearing officers (the right to strike the first name to be determined by lot) until one name remains, and that person shall be the hearing officer.
Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the Human Resources Director. All interested parties shall be notified in writing of the date, time, and place of hearing.
All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee and the concurrence of the City, open the hearing to the public unless opening it to the public would not be in the best interest of the City.
Subpoenas and subpoenas duces tecum relevant to a hearing shall be issued at the request of either party, not less than five (5) working days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions.
Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil and criminal actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence.
Each party shall have these rights:
• To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination;
• To impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her.
If the employee does not testify in his/her own behalf, he/ she may be called and examined as if under cross-examination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City and employee/ employee representative) mutually agree that the same is not necessary.
The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
1. T h e party imposing discipline shall be permitted to make an opening statement;
2. The appealing party shall then be permitted to make an opening statement;
3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;
4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits the m to offer evide nce upon their ori ginal case.
Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence.
He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. His/her decision shall set forth which charges, if any, are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions. The opinion shall be advisory only.
The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. He/she may recommend sustaining, rejecting or modifying the disciplinary action invoked against the employee.
The hearing officer's opinion and recommendation shall be filed with the City Manager, with a copy sent to the employee and the Human Resources Director and shall set forth his/her findings and recommendations. If it is a dismissal hearing and a dismissal is not the hearing officer's recommendation, the opinion shall set forth the recommended effective date the employee is to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action.
Within thirty (30) days of the receipt of the hearing officer's recommendation, or a transcript (which is optional) whichever date is later, the City Manager shall adopt amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. The City Manager shall not conduct a de nova hearing. The City Manager may, at his/her option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Manager shall be final and conclusive. Copies of the City Manager's decision, including the hearing officer's recommendation(s) shall be filed where appropriate, including the employee file, unless no discipline is upheld by the City Manager.
Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the
hearing officer or co urt reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee.
If discipline is reversed or reduced, the appropriate pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate deducting any income the employee earned which resulted from his/her dismissal or suspension.
Where an employee is suspended without pay for three (3) or four (4 ) days, the following appeal procedure shall apply:
Following a review of a proposed disciplinary action, if discipline is to be imposed, the Human Resources Director shall cause to be served on the employee affected, by registered mail, email or personal delivery, a notice of discipline signed by the department head indicating the department head's decision to impose discipline, the specific charges against the employee that he/ she has the right, within ten (10) working days after receipt of this notice, to request a hearing before the City Manager on the charges by filing the request with the Human Resources Director. The City shall have the authority to impose discipline on the effective date indicated in the notice.
If, with in the ten (10) day appeal period, the employe e involved does n ot file said appeal, unless good cause for fai lure is shown, the action of the City shal l be considered conclusive.
If, within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the Human Resources Director, the City Manager shall where practicable set a date for the hearing not less than twenty (20) and not more than sixty (60) days from the date of the filing of the appeal with the Human Resources Director.
All hearings shall be private provided, however, that the City Manager shall, at the request of the employee and the concurrence of the City, open the hearing to, the public unless opening it to the public would not be in the best interest of the City.
Subpoenas and subpoenas duces tecum relevant to a hearing shall be issued at the request of either party, not less than five (5) working days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the City Manager.
The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely on the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions.
Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil and criminal actions, and irrelevant and unduly repetitious evidence shall be excluded.
The City Manager shall not be bound by technical rules of evidence. The City Manager shall rule on the admission or exclusion of evidence.
Each party shall have these rights: To be rep resented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any
matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the respondent does not testify in his/her own behalf, he/she may be called and examined as if under cross-examination. Oral evidence shall be taken only on oath or affirmation. A court reporter may be engaged to record the hearing at the request of either party. The party requesting the reporter shall bear the cost of the reporter.
The hearing shall proceed in the following order, unless the City Manager, for special reason, otherwise directs:
1. The party imposing discipline shall be permitted to make an opening statement;
2. The appealing party shall then be permitted to make an opening statement;
3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;
4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
The parties may then, in order, respectively offer rebutting evidence only, unless the City Manager, for good reason, permits the m to offer evide nce upon their ori ginal case.
Closing arguments shall be permitted and written bri efs may be permitted at the discretion of the City Manager.
The City Manager shall determine relevancy, weight, and credibility of testimony and evidence.
He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the City Manager in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during the hearing. The City Manager, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The City Manager shall render his/her decision as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after the close of the hearing. His/her decision shall set forth which charges, if any are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions.
The City Manager shall have the authority to sustain, modify or reject any or all of the charges filed against the employee.
The City Manager's decision shall be served on the employee and the Human Resources Director. If it is a discipline hearing and a suspension is not the City Manager's decision, the opinion shall set forth the effective date the employee is to be reinstated and/or any other action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action.
If discipline is reversed or reduce d, the appropriate pay loss sh all be restore d to the employee based on the number of standard work hours lost computed at his/her then base hourly rate.
Where an employee is suspended without pay for one (1) or two (2) days, the following procedure shall apply:
Following a review of a proposed disciplinary action, if discipline is to be imposed, the Human Resources Director, shall cause to be served on the employee affected, by registered mail, email or personal delivery, a notice of discipline signed by the department head indicating the department head's decision to impose discipline, the specific charges against the employee, that he/ she has the right within ten (10) working days after receipt of this notice to request a review of the decision by the City Manager by filing the request with the Human Resources Director. The City shall have the authority to impose discipline on the effective date indicated in the notice.
If, within the ten (10) day ap peal period, th e empl oyee i nvolved does not requ est a review, the action of the City shall be considered conclusive.
If within the ten (10) day appeal period, the employee involved files a request for review by giving written notice of appeal to the Human Resources Director, the City Manager shall, where practicable, set a meeting within thirty (30) days of the date of the filing of the appeal.
At the meeting between the City Manager and the employee, the employee and/or his/her representative shall be afforded the opportunity to make an oral presentation to the City Manager as to why he/ she does not agree with the discipline. The City Manager at his/her discretion may have other management representatives present at this meeting.
The City Manager shall have thirty (30) days from the date of the meeting to sustain, reject or modify the discipline. The City manager's de cision is final an d binding.
ARTICLE 20 - SICK LEAVE
Sick leave is provide d pursuant to the City’s Personnel Rules and Regulations, as revised and adopted by the City Council on June 23, 2026.
SECTION 1 - Effective July l, 2019, sick leave shall be requested only in cases of actual sickness or disability, medical or dental treatment for one's self or one's child, spouse, parent, parent-in-law, sibling/sibling-in-law, son-in-law, daughter-in-law, grandparents, aunt/uncle, or grandchild, or as aligned by the California State Disability Insurance Program. The employee requesting sick leave shall notify his/her supervisor prior to the time set for reporting to work or as soon after start the of the workday as possible.
Sick leave with pay shall not be allowed unless the employee has met and complied with the provisions of the Personnel Rules and Regulations (Employee Handbook).
The employee may be required to submit a written statement from a health care provider that the employee is or was incapacitated and unable to perform his/her duties during the time for which sick leave was requested.
Under normal con ditions, emplo yees will not be required to provid e note from the hea lth care provider when absent due to illness or injury unless the employee is notified in advance of such requirement.
The employee may be required to submit a written statement from a health care provider that the employee is capable of and released to return to work (with or without restriction(s)).
SECTION 2 - The sick leave payment program for active employees, pursuant to the Employee Handbook will be as follows:
Effective July 1, 2026, represented employees who maintain a minimum balance of 160 hours or more may cash out sick leave (up to 160 hours) paid at 50%. At no time can the amount that is cashed out result in the minimum balance to fall below 160 hours.
SECTION 3 - The sick leave pay-out at termination formula for calculation shall be:
Years of Service Percentage of Sick Time Cash out at
Termination
0 5%
1 10%
2 20%
3 30%
4 40%
5 50%
6 60%
7 70%
8 80%
9 90%
10+ 100%
ARTICLE 21 -WORK RELATED INJURY LEAVE
Employees absent from work due to a work-related injury will be paid full pay for up to eighty (80) hours from and including the first day of disability for claims filed after January 1 , 1993 pursuant to the Personnel Rules and Regulations (Employee Handbook).
ARTICLE 22 - VACATION
SECTION 1 - Vacation Accrual shall be as follows:
Each full-time regular and probationary Represented employee that have at least 60 paid hours during each month shall accrue vacation leave calculated in accordance with the following formula:
Start of Service Year Annual Hours Accrued Accrual Rate 1st Pay Check
1 80 3.33r
2 90 3.75
3 100 4.17
4 110 4.58
5 120 5.00
6 130 5.42
7 140 5.83
8 150 6.25
9 160 6.67
10 170 7.08
11-14 180 7.50
15-19 190 7.92
20+ 200 8.33
Probationary employees will accrue vacation credits during the initial probation, but are not allowed to use them until they have satisfactorily complete probation.
Effective July 1, 2019, an employee's vacation hours shall not exceed the following maximum amounts:
Service Year Full time
1-5 275
6-10 350
11+ 450
Employees reaching the maximum allowable vacation accrual shall cease to accrue monthly vacation hours until such time as total vacation accrual falls below maximum. They shall then accrue at their monthly rate as prescribed in the Personnel Rules and Regulations (Employee Handbook).
SECTION 2 - Vacation Payment Program - Effective July 1 , 2019, an employee shall have the option to cash in at 100% compensation 80 hours of vacation in excess of 80 hours, per calendar year.
SECTION 3 - In order to facilitate vacation scheduling and to achieve the objective of assuring employees are able to take annual vacation, starting January 1 , 1995, Development Services Department will post an annual calendar showing time when vacations can and cannot be scheduled and will clarify to employees how many employees can be off on vacation at the same time from each crew.
Employees will bid for vacation during the month of January each year. Seniority shall be used to break ties if more employees want the same vacation period. Employees receiving approval of vacation time requested during this window period shall be allowed to take such vacation time, except in the case of extreme emergency. Employees may decide not to take such approved time, but would then not be able to use seniority to select other dates. Employees not requesting vacation time during the window period will not be guaranteed vacation time when requested. The City will endeavor to grant vacation requests outside the window period sign up provided there are no operational constraints.
ARTICLE 23 - HOLIDAYS
SECTION 1 - Pursuant to the Personn el Rules an d Regulations (Employee Handbook), the following holidays shall be observed by the City with respect to all employees of the City:
New Year's Eve Memorial Day Thanksgiving Day
New Year's Day Independence Day Day after Thanksgiving
Martin Luther King Day Labor Day Christmas Eve
President's Day Veteran's Day Christmas Day
Juneteenth Columbus/Indigenous People's Day
When a holiday falls on a Sunday, Monday shall be observed as the holiday. When a holiday falls on a Saturday, the preceding Friday shall be observed as the holiday. If the normal work week is not the standard Monday through Friday, the holiday falls on the day preceding or following the normal days off.
SECTION 2 - An employee eligible for holiday pay, required to work on the actual (not observed) holiday shall be paid at the double-time rate for any actual hours worked hours on said day. For example, if Juneteenth falls on a Friday but is observed on a Thursday based on the employee’s schedule, then double-time rate applies only for hours worked on Friday.
SECTION 3 - Floating Holidays
Effective July 1, 2019, two (2) floating holidays (based on the employee's regular work day schedule) shall be credited to each full-time employee on January l of each calendar year and must be used prior to December 31 of the same year credited. Floating holidays shall not carryover.
Effective July 1,
2019, employees hired between January l and June 30 shall be credited two (2) floating holidays (based on the employee's regular work day schedule). Employees hired between July l and December 31 shall be credited one (l) floating holiday (based on the employee's regular work day schedule).
ARTICLE 24 - OTHER PROGRAMS AND MATTERS
SECTION 1 - Wellness Program
The City will continue the Wellness Program, subject to approval by each division/department head.
SECTION 2 - Employee Recognition Program
The City will continue to develop the employee recognition program. Implementation or abolishment of such a program will be at the sole discretion of City management.
SECTION 3 - Confined Space Committee
The City will establish a Confined Space Committee when such work is expected to be assigned.
SECTION 4 - Union Membership on City Committees
The City shall allow a Union appointed employee for each Committee the City has or will establish that deals with any issue that involves the bargaining unit. The Union will make every effort to select union members who are interested in the w ork of the committee from different areas an d divisions of the bargaining unit.
SECTION 5 - Me al and Rest Periods
Meal periods shall typically be 30 minutes in length and shall normally be taken at mid-point of the work shift, unless otherwise directed by the lead worker or supervisor. Meal periods shall begin when the employee leaves the assigned work area and ends when the employee returns to the assigned work area ready for work. The lead worker or supervisor has the authority to reschedule the meal period when the work requires such variation. If an employee is not able to take his/her meal break at its scheduled time due to an unforeseen situation concerning the requirements of the job, then they shall be given their meal break as soon as feasible prior to the end of their shift. It is suggested, but not required, that employees bring a meal from home so that their meal periods can be taken at the work site. It is understood that meals cannot always be brought from home, therefore, during those instances; the employee shall notify the lead worker or supervisor prior to receiving the daily work assignment. The lead worker or supervisor will attempt to make arrangements, if feasible, to ensure that the employee receives the opportunity to purchase a meal for that day. Employees who are regularly assigned to work at a City facility and have accessibility to their privately-owned vehicle may use that vehicle to leave the facility during their meal period. Upon notifying their lead worker or supervisor, employees who are assigned to work in close proximity to a City facility may use their meal periods and City vehicles to drive to that City facility to eat a meal or to use their personally owned vehicle to leave the City facility during their meal period.
Employees working in excess of four (4) hours per day shall be entitled to rest breaks (paid) of not more than fifteen (15) minutes each. Two rest breaks may be scheduled during the regular work day. One break should be taken before the meal break, and the other should be taken after the meal break and prior to the end of the work day.
Rest breaks may not be accu mulated, or used to extend the lun ch break, leave work early, or report to work late.
SECTION 6 - Testing
All testing for hire and promotions shall be jointly administered by the applicable Department and by Human Resources. All tests shall be administered equitably and fairly for all applicants. Answers to tests or copies of the tests shall not be given in advance to any applicant.
SECTION 7 - C ertification Pay
The City will pay the cost of maintaining licenses and certifications required by the City. The City will pay $50.00 per month, up to a maximum of three (3) certifications at a time, per manager approval required, to employees that the City requires to perform duties requiring one or more of the following specialized skills/knowledge:
Hazardous Waste
Operations & Emergency
Response (HAZWOPER)
International Municipal
Signal Association (IMSA)
Certification Level II & Ill
National Recreation &
Park Association
(NRPA) Certified
Playground Safety
American Concrete Institute
(ACI)
Bloodborne Pathogen
(OSHA)
EPA 609 -
Air Conditioning & Freon
Automotive Service
Excellence (ACE)
Caterpillar - Pro Operator Qualified Applicator
License (Pest Landscaping,
etc.)
Backflow Water Treatment/Distribution - California Water Board Additional certifications may be considered upon approval from management and Human Resources.
The supervisor and division/ department head shall review and approve/ deny the request specifying the duration of certification pay and type of license/ certification held by the employee. The approval can be for a per year or per month basis, as deemed as appropriate by the supervisor.
Once approved, the division/ department shall forward the request to Human Resources for verification of license/ certificate. Human Resources will then submit the approved request to Payroll for processing.
The employee is required to maintain a valid license or certificate in order to receive the pay.
SECTION 8 - Working Out of Class
Employees assigned to work a temporary assignment in accordance with the Personnel Rules and Regulations (Employee Handbook) will be entitled to "out of class" pay after ten ( l 0) days of such assignment, retroactively. These days do not need to be consecutive.
SECTION 9 – Transfers
Employees may be transferred from one department to another only with the consent of both department Directors, or when the transfer is directed by the City Manager for purposes of economy and efficiency.
SECTION 10 – Union Accountability Measure
City recognizes that the Union has developed and adopted its own Union Accountability Measure, as set forth in Appendix “C”. Union agrees and recognizes that Appendix “C” is incorporated into this MOU for informational purposes only and that City bears no duties, responsibilities, obligations or liabilities with respect to the Union Accountability Measure.
SECTION 11 – Misconduct Investigations
City
will pro vide the Union with status notifi cations of workplace investigatio ns into potential misconduct by represented employees. Updates will be provided at approximately 90, 120 and 150 days
following the issuance of written notice of investigation to a subject employee. Status updates will identify whether the investigation is pending, ongoing, under City review, closed with appropriate action taken, or otherwise resolved. Status updates shall not include any confidential information regarding the investigation.
This section shall in no way be construed as imposing any time limits or similar constraints on the investigation process or related actions. In the event an anticipated status update is not received by the Union, Union will promptly notify City to remedy the issue.
SECTION 12 – Apprentice Program
During the term of this MOU, City and Union representatives agree to meet at least quarterly to discuss developing a program for represented employees to train and mentor other represented employees to quickly serve in temporary vacant roles.
ARTICLE 25 - FLEX SYSTEM
The process for flexing to a
Maintenance Worker II position in Parks or Development Services is as follows:
Employees in the classification of Maintenance Worker I who have successfully passed their probationary period and have been actively employed in the classification for at least one year may request to flex to a Maintenance Worker II position by submitting a Request for Flex Consideration form to his/her supervisor. The supervisor shall forward a copy to Human Resources at the time of the initial request.
The employee's lead worker begins an evaluation process to determine if the employee demonstrates proficiency in the area which the employee selected to flex. The evaluation form consists of a pre-determined skill set approved by Human Resources.
A Development Services employee will go before an evaluation committee. Committee members will review the evaluation submitted by the lead worker and test the employee's knowledge of policies and procedures.
A Parks employee will participate in a practical examination to demonstrate their proficiency to a lead worker other than the one who completed their evaluation. A Parks employee will also complete an oral examination on department policies and procedures.
The department will submit a recommendation to Human Resources to flex employees who successfully complete all portions of the process to the Maintenance Worker II position. The process may take six (6) months or more to complete due to operational considerations.
Employees may challenge any portion of the process by submitting a written statement to Human Resources. Human Resources will forward a copy of the challenge to the department and provide the employee with a written response within thirty (30) days of the challenge.
Employee who do not successfully complete all portions of the process must wait a minimum of six months before requesting to retake any portion of the process and/or submitting another Request for Flex Consideration.
ARTICLE 26 - NO STRIKE - NO LOCKOUT
During the life of this MOU, no work stoppages, strikes, slowdowns, or picketing shall be caused, sanctioned, or condoned by the Union. No lockouts shall be made by the City. In the event that any employees covered by this MOU, individually or collectively, violate the provisions of this Article and the Union fails to exercise good faith in halting the work interruption, the Union and the employees involved shall be deemed in violation of this Article and the City shall be entitled to seek all remedies available to it under applicable law. Employees engaged in a work stoppage, strike, slowdown or picketing during the term of this agreement shall be subject to disciplinary action up to and including termination.
ARTICLE 27 - LAYOFF PROCEDURES
Pursuant to the Personnel Rules and Regulations (Employee Handbook), whenever there shall be need for layoff, employees within the class(s) of position(s) involved shall be terminated in the following order:
1. Emergency
2. Temporary
3. Provisional
4. Probationary
5. Permanent
The order of layoff of regular employees shall be based on the recommendation of the department head. The department head shall give primary consid eration to job performan ce and length of service.
Regular employees, subsequently laid off, shall be given ten (10) working days' notice, and written notice of the reasons for such action. Regular employees in good standing (those deemed to have provided satisfactory service) shall be placed on re-employment lists and will have precedence for employment over persons whose names appear on employment lists for the same class.
ARTICLE 28 - ENTIRE MEMORANDUM OF UNDERSTANDING
SECTION 1 - It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements and memorandums of agreement, or memorandums of understanding, or contrary salary and/or personnel resolutions or Administrative Codes, provisions of the City, oral or written, expressed or implied, between the parties, and shall govern the entire relationship, and shall be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with Federal or State law.
SECTION 2 - Notwithstanding the provisions of Section 1, there exists within the City certain personnel rules and regulations and departmental rules and regulations. To the extent that this MOU does not specifically contradict these personnel rules and regulations or departmental rules and
regulations o r City ordinances, they shall continue subject to bein g changed by the City in accordance with the exercise of City rights un der this MOU and appli cable State law.
ARTICLE 29 - WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT Except where required by the terms of this MOU, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours, and terms and conditions of employment, whether or not covered by this Memorandum or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU.
ARTICLE 30 - EMERGENC Y WAIVER PROVISION
In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this MOU or the Personnel Rules and Regulations (Employee Handbook) of the City which restrict the City's ability to respond to these emergencies shall be suspended for the duration of such emergency. After the emergency is over, the Union shall have the right to meet and confer with the City regarding the impact on employees of the suspension of these provisions in the MOU and any Personnel Rules and policies.
ARTICLE 31 - SEPARABILITY
Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU.
ARTICLE 32 - IMPLEMENTATION
The provisions as contained in this MOU shall not be binding on either party until this MOU is approved by the City Council of the City of Lancaster through adoption of appropriate ordinances and/or resolutions and ratified by all 911 membership. This MOU represents a mutual understanding of both parties in accordance with the provisions of the Meyer-Milias-Brown Act, Government Code Section 3500 et seq. of the California Government Code.
ARTICLE 33 - RENEGOTIATIONS
In the event the Union desires to meet and confer in good faith on the provisions of a successor MOU, it shall serve upon the City, not later than July 31, 2029, its written request to commence meeting and conferring in good faith as well as its full and entire written proposal for such successor MOU. Upon receipt of such written notice and proposals, the parties shall utilize their best efforts to commence meeting and conferring by September 1, 2029.
ARTICLE 34 - TERM OF MEMORANDUM OF UNDERSTANDING
The City Council shall consider this Memorandum of Understanding at their meeting of June 23, 20206. Once signed the Memorandum of Understanding is effective from July 1, 2026through June 30, 2030.
CITY OF LANCASTER,
___________________________ ____________________________ Trolis Niebla, City Manager Geoge N. Harris II, Senior Director
CALIFORNIA TEAMSTERS PUBLIC, PROFESSIONAL, AND MEDICAL EMPLOYEES UNION, LOCAL 986
___________________________ __________________________
Michael Grijalva Jose Torres
Business Representative Chief Steward
___________________________
Bailey Ramm
Steward
___________________________
Glen Crampton
Steward
___________________________
Shawn Webb
Steward
__________________________
Matthew Stoffel
Steward
Appendix A-1
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $27.01 H - $28.37 H - $29.78 H - $31.26 H - $32.83 H - $34.47 M - $4,681.73 M - $4,917.47 M - $5,161.87 M - $5,418.40 M - $5,690.53 M - $5,974.80 H - $28.39 H - $29.80 H - $31.28 H - $32.85 H - $34.49 H - $36.22 M - $4,920.93 M - $5,165.33 M - $5,421.87 M - $5,694.00 M - $5,978.27 M - $6,278.13 H - $28.39 H - $29.80 H - $31.28 H - $32.85 H - $34.49 H - $36.22 M - $4,920.93 M - $5,165.33 M - $5,421.87 M - $5,694.00 M - $5,978.27 M - $6,278.13 H - $28.39 H - $29.80 H - $31.28 H - $32.85 H - $34.49 H - $36.22 M - $4,920.93 M - $5,165.33 M - $5,421.87 M - $5,694.00 M - $5,978.27 M - $6,278.13 H - $29.87 H - $31.35 H - $32.93 H - $34.57 H - $36.29 H - $38.11 M - $5,177.47 M - $5,434.00 M - $5,707.87 M - $5,992.13 M - $6,290.27 M - $6,605.73 H - $29.87 H - $31.35 H - $32.93 H - $34.57 H - $36.29 H - $38.11 M - $5,177.47 M - $5,434.00 M - $5,707.87 M - $5,992.13 M - $6,290.27 M - $6,605.73 H - $30.60 H - $32.13 H - $33.73 H - $35.41 H - $37.19 H - $39.06 M - $5,304.00 M - $5,569.20 M - $5,846.53 M - $6,137.73 M - $6,446.27 M - $6,770.40 H - $31.37 H - $32.95 H - $34.59 H - $36.31 H - $38.14 H - $40.04 M - $5,437.47 M - $5,711.33 M - $5,995.60 M - $6,293.73 M - $6,610.93 M - $6,940.27 H - $31.37 H - $32.95 H - $34.59 H - $36.31 H - $38.14 H - $40.04 M - $5,437.47 M - $5,711.33 M - $5,995.60 M - $6,293.73 M - $6,610.93 M - $6,940.27 H - $31.37 H - $32.95 H - $34.59 H - $36.31 H - $38.14 H - $40.04 M - $5,437.47 M - $5,711.33 M - $5,995.60 M - $6,293.73 M - $6,610.93 M - $6,940.27 H - $31.37 H - $32.95 H - $34.59 H - $36.31 H - $38.14 H - $40.04 M - $5,437.47 M - $5,711.33 M - $5,995.60 M - $6,293.73 M - $6,610.93 M - $6,940.27 H - $33.78 H - $35.47 H - $37.24 H - $39.11 H - $41.06 H - $43.11 M - $5,855.20 M - $6,148.13 M - $6,454.93 M - $6,779.07 M - $7,117.07 M - $7,472.40 H - $33.78 H - $35.47 H - $37.24 H - $39.11 H - $41.06 H - $43.11 M - $5,855.20 M - $6,148.13 M - $6,454.93 M - $6,779.07 M - $7,117.07 M - $7,472.40 H - $35.43 H - $37.21 H - $39.08 H - $41.02 H - $43.07 H - $45.23 M - $6,141.20 M - $6,449.73 M - $6,773.87 M - $7,110.13 M - $7,465.47 M - $7,839.87 H - $35.43 H - $37.21 H - $39.08 H - $41.02 H - $43.07 H - $45.23 M - $6,141.20 M - $6,449.73 M - $6,773.87 M - $7,110.13 M - $7,465.47 M - $7,839.87 H - $37.28 H - $39.15 H - $41.11 H - $43.16 H - $45.32 H - $47.58 M - $6,461.87 M - $6,786.00 M - $7,125.73 M - $7,481.07 M - $7,855.47 M - $8,247.20 H - $39.18 H - $41.14 H - $43.19 H - $45.35 H - $47.61 H - $50.00 M - $6,791.20 M - $7,130.93 M - $7,486.27 M - $7,860.67 M - $8,252.40 M - $8,666.67 H - $43.31 H - $45.47 H - $47.75 H - $50.13 H - $52.64 H - $55.27 M - $7,507.07 M - $7,881.47 M - $8,276.67 M - $8,689.20 M - $9,124.27 M - $9,580.13 H - $43.31 H - $45.47 H - $47.75 H - $50.13 H - $52.64 H - $55.27 M - $7,507.07 M - $7,881.47 M - $8,276.67 M - $8,689.20 M - $9,124.27 M - $9,580.13 H - $50.13 H - $52.64 H - $55.27 H - $58.04 H - $60.95 H - $63.99 M - $8,689.20 M - $9,124.27 M - $9,580.13 M - $10,060.27 M - $10,564.67 M - $11,091.60 Lead Traffic Signal
Technician
Traffic Signal Electrician
Lead Heavy Equipment
Operator
Lead Utility
Maintenance Worker
Fleet Mechanic I
Traffic Signal Technician
Fleet Mechanic II
Lead Fleet Mechanic
Senior Custodian
Facilities Maintenance
Worker
Heavy Equipment
Operator
Utility Maintenance
Worker II
Traffic & Lighting
Maintenance Worker II
Lead Maintenance
Worker
Salary Schedule
Fiscal Year 2026-2027
Maintenance Worker I
Custodian
Utility Maintenance
Worker I
Traffic & Lighting
Maintenance Worker I
Maintenance Worker II
Fleet Technician
Appendix A-2
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $27.55 H - $28.94 H - $30.38 H - $31.89 H - $33.49 H - $35.16 M - $4,775.33 M - $5,016.27 M - $5,265.87 M - $5,527.60 M - $5,804.93 M - $6,094.40 H - $28.96 H - $30.40 H - $31.91 H - $33.51 H - $35.18 H - $36.94 M - $5,019.73 M - $5,269.33 M - $5,531.07 M - $5,808.40 M - $6,097.87 M - $6,402.93 H - $28.96 H - $30.40 H - $31.91 H - $33.51 H - $35.18 H - $36.94 M - $5,019.73 M - $5,269.33 M - $5,531.07 M - $5,808.40 M - $6,097.87 M - $6,402.93 H - $28.96 H - $30.40 H - $31.91 H - $33.51 H - $35.18 H - $36.94 M - $5,019.73 M - $5,269.33 M - $5,531.07 M - $5,808.40 M - $6,097.87 M - $6,402.93 H - $30.47 H - $31.98 H - $33.59 H - $35.26 H - $37.02 H - $38.87 M - $5,281.47 M - $5,543.20 M - $5,822.27 M - $6,111.73 M - $6,416.80 M - $6,737.47 H - $30.47 H - $31.98 H - $33.59 H - $35.26 H - $37.02 H - $38.87 M - $5,281.47 M - $5,543.20 M - $5,822.27 M - $6,111.73 M - $6,416.80 M - $6,737.47 H - $31.21 H - $32.77 H - $34.40 H - $36.12 H - $37.93 H - $39.84 M - $5,409.73 M - $5,680.13 M - $5,962.67 M - $6,260.80 M - $6,574.53 M - $6,905.60 H - $32.00 H - $33.61 H - $35.28 H - $37.04 H - $38.90 H - $40.84 M - $5,546.67 M - $5,825.73 M - $6,115.20 M - $6,420.27 M - $6,742.67 M - $7,078.93 H - $32.00 H - $33.61 H - $35.28 H - $37.04 H - $38.90 H - $40.84 M - $5,546.67 M - $5,825.73 M - $6,115.20 M - $6,420.27 M - $6,742.67 M - $7,078.93 H - $32.00 H - $33.61 H - $35.28 H - $37.04 H - $38.90 H - $40.84 M - $5,546.67 M - $5,825.73 M - $6,115.20 M - $6,420.27 M - $6,742.67 M - $7,078.93 H - $32.00 H - $33.61 H - $35.28 H - $37.04 H - $38.90 H - $40.84 M - $5,546.67 M - $5,825.73 M - $6,115.20 M - $6,420.27 M - $6,742.67 M - $7,078.93 H - $34.46 H - $36.18 H - $37.98 H - $39.89 H - $41.88 H - $43.97 M - $5,973.07 M - $6,271.20 M - $6,583.20 M - $6,914.27 M - $7,259.20 M - $7,621.47 H - $34.46 H - $36.18 H - $37.98 H - $39.89 H - $41.88 H - $43.97 M - $5,973.07 M - $6,271.20 M - $6,583.20 M - $6,914.27 M - $7,259.20 M - $7,621.47 H - $36.14 H - $37.95 H - $39.86 H - $41.84 H - $43.93 H - $46.13 M - $6,264.27 M - $6,578.00 M - $6,909.07 M - $7,252.27 M - $7,614.53 M - $7,995.87 H - $36.14 H - $37.95 H - $39.86 H - $41.84 H - $43.93 H - $46.13 M - $6,264.27 M - $6,578.00 M - $6,909.07 M - $7,252.27 M - $7,614.53 M - $7,995.87 H - $38.03 H - $39.93 H - $41.93 H - $44.02 H - $46.23 H - $48.53 M - $6,591.87 M - $6,921.20 M - $7,267.87 M - $7,630.13 M - $8,013.20 M - $8,411.87 H - $39.96 H - $41.96 H - $44.05 H - $46.26 H - $48.56 H - $51.00 M - $6,926.40 M - $7,273.07 M - $7,635.33 M - $8,018.40 M - $8,417.07 M - $8,840.00 H - $44.18 H - $46.38 H - $48.71 H - $51.13 H - $53.69 H - $56.38 M - $7,657.87 M - $8,039.20 M - $8,443.07 M - $8,862.53 M - $9,306.27 M - $9,772.53 H - $44.18 H - $46.38 H - $48.71 H - $51.13 H - $53.69 H - $56.38 M - $7,657.87 M - $8,039.20 M - $8,443.07 M - $8,862.53 M - $9,306.27 M - $9,772.53 H - $51.13 H - $53.69 H - $56.38 H - $59.20 H - $62.17 H - $65.27 M - $8,862.53 M - $9,306.27 M - $9,772.53 M - $10,261.33 M - $10,776.13 M - $11,313.47 Fleet Mechanic II
Lead Fleet Mechanic
Lead Traffic Signal
Technician
Traffic Signal Electrician
Traffic & Lighting
Maintenance Worker II
Lead Maintenance
Worker
Lead Heavy Equipment
Operator
Lead Utility
Maintenance Worker
Fleet Mechanic I
Traffic Signal Technician
Maintenance Worker II
Fleet Technician
Heavy Equipment
Operator
Utility Maintenance
Worker II
Utility Maintenance
Worker I
Traffic & Lighting
Maintenance Worker I
Senior Custodian
Facilities Maintenance
Worker
Salary Schedule
Fiscal Year 2027-2028
Maintenance Worker I
Custodian
Appendix A-3
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $28.65 H - $30.10 H - $31.60 H - $33.17 H - $34.83 H - $36.57 M - $4,966.00 M - $5,217.33 M - $5,477.33 M - $5,749.47 M - $6,037.20 M - $6,338.80 H - $30.12 H - $31.62 H - $33.19 H - $34.85 H - $36.59 H - $38.42 M - $5,220.80 M - $5,480.80 M - $5,752.93 M - $6,040.67 M - $6,342.27 M - $6,659.47 H - $30.12 H - $31.62 H - $33.19 H - $34.85 H - $36.59 H - $38.42 M - $5,220.80 M - $5,480.80 M - $5,752.93 M - $6,040.67 M - $6,342.27 M - $6,659.47 H - $30.12 H - $31.62 H - $33.19 H - $34.85 H - $36.59 H - $38.42 M - $5,220.80 M - $5,480.80 M - $5,752.93 M - $6,040.67 M - $6,342.27 M - $6,659.47 H - $31.69 H - $33.26 H - $34.93 H - $36.67 H - $38.50 H - $40.42 M - $5,492.93 M - $5,765.07 M - $6,054.53 M - $6,356.13 M - $6,673.33 M - $7,006.13 H - $31.69 H - $33.26 H - $34.93 H - $36.67 H - $38.50 H - $40.42 M - $5,492.93 M - $5,765.07 M - $6,054.53 M - $6,356.13 M - $6,673.33 M - $7,006.13 H - $32.46 H - $34.08 H - $35.78 H - $37.56 H - $39.45 H - $41.43 M - $5,626.40 M - $5,907.20 M - $6,201.87 M - $6,510.40 M - $6,838.00 M - $7,181.20 H - $33.28 H - $34.95 H - $36.69 H - $38.52 H - $40.46 H - $42.47 M - $5,768.53 M - $6,058.00 M - $6,359.60 M - $6,676.80 M - $7,013.07 M - $7,361.47 H - $33.28 H - $34.95 H - $36.69 H - $38.52 H - $40.46 H - $42.47 M - $5,768.53 M - $6,058.00 M - $6,359.60 M - $6,676.80 M - $7,013.07 M - $7,361.47 H - $33.28 H - $34.95 H - $36.69 H - $38.52 H - $40.46 H - $42.47 M - $5,768.53 M - $6,058.00 M - $6,359.60 M - $6,676.80 M - $7,013.07 M - $7,361.47 H - $33.28 H - $34.95 H - $36.69 H - $38.52 H - $40.46 H - $42.47 M - $5,768.53 M - $6,058.00 M - $6,359.60 M - $6,676.80 M - $7,013.07 M - $7,361.47 H - $35.84 H - $37.63 H - $39.50 H - $41.49 H - $43.56 H - $45.73 M - $6,212.27 M - $6,522.53 M - $6,846.67 M - $7,191.60 M - $7,550.40 M - $7,926.53 H - $35.84 H - $37.63 H - $39.50 H - $41.49 H - $43.56 H - $45.73 M - $6,212.27 M - $6,522.53 M - $6,846.67 M - $7,191.60 M - $7,550.40 M - $7,926.53 H - $37.59 H - $39.47 H - $41.45 H - $43.51 H - $45.69 H - $47.98 M - $6,515.60 M - $6,841.47 M - $7,184.67 M - $7,541.73 M - $7,919.60 M - $8,316.53 H - $37.59 H - $39.47 H - $41.45 H - $43.51 H - $45.69 H - $47.98 M - $6,515.60 M - $6,841.47 M - $7,184.67 M - $7,541.73 M - $7,919.60 M - $8,316.53 H - $39.55 H - $41.53 H - $43.61 H - $45.78 H - $48.08 H - $50.47 M - $6,855.33 M - $7,198.53 M - $7,559.07 M - $7,935.20 M - $8,333.87 M - $8,748.13 H - $41.56 H - $43.64 H - $45.81 H - $48.11 H - $50.50 H - $53.04 M - $7,203.73 M - $7,564.27 M - $7,940.40 M - $8,339.07 M - $8,753.33 M - $9,193.60 H - $45.95 H - $48.24 H - $50.66 H - $53.18 H - $55.84 H - $58.64 M - $7,964.67 M - $8,361.60 M - $8,781.07 M - $9,217.87 M - $9,678.93 M - $10,164.27 H - $45.95 H - $48.24 H - $50.66 H - $53.18 H - $55.84 H - $58.64 M - $7,964.67 M - $8,361.60 M - $8,781.07 M - $9,217.87 M - $9,678.93 M - $10,164.27 H - $53.18 H - $55.84 H - $58.64 H - $61.57 H - $64.66 H - $67.88 M - $9,217.87 M - $9,678.93 M - $10,164.27 M - $10,672.13 M - $11,207.73 M - $11,765.87Traffic Signal Electrician Lead Utility
Maintenance Worker
Fleet Mechanic I
Traffic Signal Technician
Fleet Mechanic II
Lead Fleet Mechanic
Lead Traffic Signal
Technician
Facilities Maintenance
Worker
Heavy Equipment
Operator
Utility Maintenance
Worker II
Traffic & Lighting
Maintenance Worker II
Lead Maintenance
Worker
Lead Heavy Equipment
Operator
Custodian
Utility Maintenance
Worker I
Traffic & Lighting
Maintenance Worker I
Maintenance Worker II
Fleet Technician
Senior Custodian
Salary Schedule
Fiscal Year 2028-2029
Maintenance Worker I
Appendix A-4
Classification Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 H - $29.80 H - $31.30 H - $32.86 H - $34.50 H - $36.22 H - $38.03 M - $5,165.33 M - $5,425.33 M - $5,695.73 M - $5,980.00 M - $6,278.13 M - $6,591.87 H - $31.32 H - $32.88 H - $34.52 H - $36.24 H - $38.05 H - $39.96 M - $5,428.80 M - $5,699.20 M - $5,983.47 M - $6,281.60 M - $6,595.33 M - $6,926.40 H - $31.32 H - $32.88 H - $34.52 H - $36.24 H - $38.05 H - $39.96 M - $5,428.80 M - $5,699.20 M - $5,983.47 M - $6,281.60 M - $6,595.33 M - $6,926.40 H - $31.32 H - $32.88 H - $34.52 H - $36.24 H - $38.05 H - $39.96 M - $5,428.80 M - $5,699.20 M - $5,983.47 M - $6,281.60 M - $6,595.33 M - $6,926.40 H - $32.96 H - $34.59 H - $36.33 H - $38.14 H - $40.04 H - $42.04 M - $5,713.07 M - $5,995.60 M - $6,297.20 M - $6,610.93 M - $6,940.27 M - $7,286.93 H - $32.96 H - $34.59 H - $36.33 H - $38.14 H - $40.04 H - $42.04 M - $5,713.07 M - $5,995.60 M - $6,297.20 M - $6,610.93 M - $6,940.27 M - $7,286.93 H - $33.76 H - $35.44 H - $37.21 H - $39.06 H - $41.03 H - $43.09 M - $5,851.73 M - $6,142.93 M - $6,449.73 M - $6,770.40 M - $7,111.87 M - $7,468.93 H - $34.61 H - $36.35 H - $38.16 H - $40.06 H - $42.08 H - $44.17 M - $5,999.07 M - $6,300.67 M - $6,614.40 M - $6,943.73 M - $7,293.87 M - $7,656.13 H - $34.61 H - $36.35 H - $38.16 H - $40.06 H - $42.08 H - $44.17 M - $5,999.07 M - $6,300.67 M - $6,614.40 M - $6,943.73 M - $7,293.87 M - $7,656.13 H - $34.61 H - $36.35 H - $38.16 H - $40.06 H - $42.08 H - $44.17 M - $5,999.07 M - $6,300.67 M - $6,614.40 M - $6,943.73 M - $7,293.87 M - $7,656.13 H - $34.61 H - $36.35 H - $38.16 H - $40.06 H - $42.08 H - $44.17 M - $5,999.07 M - $6,300.67 M - $6,614.40 M - $6,943.73 M - $7,293.87 M - $7,656.13 H - $37.27 H - $39.14 H - $41.08 H - $43.15 H - $45.30 H - $47.56 M - $6,460.13 M - $6,784.27 M - $7,120.53 M - $7,479.33 M - $7,852.00 M - $8,243.73 H - $37.27 H - $39.14 H - $41.08 H - $43.15 H - $45.30 H - $47.56 M - $6,460.13 M - $6,784.27 M - $7,120.53 M - $7,479.33 M - $7,852.00 M - $8,243.73 H - $39.09 H - $41.05 H - $43.11 H - $45.25 H - $47.52 H - $49.90 M - $6,775.60 M - $7,115.33 M - $7,472.40 M - $7,843.33 M - $8,236.80 M - $8,649.33 H - $39.09 H - $41.05 H - $43.11 H - $45.25 H - $47.52 H - $49.90 M - $6,775.60 M - $7,115.33 M - $7,472.40 M - $7,843.33 M - $8,236.80 M - $8,649.33 H - $41.13 H - $43.19 H - $45.35 H - $47.61 H - $50.00 H - $52.49 M - $7,129.20 M - $7,486.27 M - $7,860.67 M - $8,252.40 M - $8,666.67 M - $9,098.27 H - $43.22 H - $45.39 H - $47.64 H - $50.03 H - $52.52 H - $55.16 M - $7,491.47 M - $7,867.60 M - $8,257.60 M - $8,671.87 M - $9,103.47 M - $9,561.07 H - $47.79 H - $50.17 H - $52.69 H - $55.31 H - $58.07 H - $60.99 M - $8,283.60 M - $8,696.13 M - $9,132.93 M - $9,587.07 M - $10,065.47 M - $10,571.60 H - $47.79 H - $50.17 H - $52.69 H - $55.31 H - $58.07 H - $60.99 M - $8,283.60 M - $8,696.13 M - $9,132.93 M - $9,587.07 M - $10,065.47 M - $10,571.60 H - $55.31 H - $58.07 H - $60.99 H - $64.03 H - $67.25 H - $70.60 M - $9,587.07 M - $10,065.47 M - $10,571.60 M - $11,098.53 M - $11,656.67 M - $12,237.33 Fleet Mechanic II
Lead Fleet Mechanic
Lead Traffic Signal
Technician
Traffic Signal Electrician
Traffic & Lighting
Maintenance Worker II
Lead Maintenance
Worker
Lead Heavy Equipment
Operator
Lead Utility
Maintenance Worker
Fleet Mechanic I
Traffic Signal Technician
Maintenance Worker II
Fleet Technician
Senior Custodian
Facilities Maintenance
Worker
Heavy Equipment
Operator
Utility Maintenance
Worker II
Salary Schedule
Fiscal Year 2029-2030
Maintenance Worker I
Custodian
Utility Maintenance
Worker I
Traffic & Lighting
Maintenance Worker I
APPENDIX B
Memorandum of Understanding
Between the Teamsters 911 and the City of Lancaster
This Memorandum of Understanding (MOU) reaffirms the commitment of the Teamsters 911 and the City of Lancaster to maintaining a strong and productive partnership. Both parties recognize the importance of fostering a culture of accountability, professionalism, and continuous improvement while upholding the highest standards of public service.
I. Accountability Measure
The Union is implementing an Accountability Measure to ensure that all employees meet established performance standards. This measure is based on the principle that each individual is responsible for their actions and will be held accountable accordingly. Employees who fail to adhere to expected performance and conduct standards will be subject to appropriate corrective actions, up to and including disciplinary measures, in accordance with applicable policies and agreements.
II. Collaborative Issue Resolution
The Union and City manage ment are committed to addressing co ncerns proactively to prevent issues from escalating. To that end, the following process shall be observed:
1. Initial Review by Union Steward
o If a Union steward observes or is informed by a team member that an individual is not meeting established performance standards, the steward may engage in a preliminary conversation with the team member to address concerns and provide guidance. o The steward’s role in these discussions shall be limited to informal coaching and mentorship unless further involvement is deemed necessary by the supervisor.
2. Supervisor Discretion & Escalation
o Supervisors retain sole discretion over whether to involve Union stewards in performance- related matters.
o Any issues related to employee privacy, safety, or other sensitive matters shall be handled exclusively by the supervisor in accordance with City policies and procedures.
3. Corrective Action & Enforcement
o If the employee fails to take corrective action following an initial conversation, the matter shall be escalated for appropriate follow-up, which may include formal corrective or disciplinary action in alignment with City policies and the MOU.
III. Commitment to Continuous Improvement
By enhancing our accountability processes and promoting open communication, the Union and the City seek to strengthen performance standards, uphold workplace integrity, and foster a positive and productive work environment. The Union remains committed to enforcing the provisions of the MOU while working collaboratively with the City to ensure fairness and transparency in all employment matters.
IV. Conclusion
Both parties recognize the value of this partnership and are committed to ongoing collaboration for the benefit of employees and the community. This MOU shall remain in effect unless modified by mutual agreement.
STAFF REPORT
City of Lancaster
CC 17
6/23/2026
TN
Date:June 23, 2026
To: Mayor Parris and City Council Members
From:George N. Harris II, Senior Director/Treasurer – Administrative Services Subject:Monthly Reports of Investments – May 2026
Recommendation:
Accept and approve the May 2026 Monthly Report of Investments as submitted.
G.C. Section 84308: No
Fiscal Impact:
None
Background:
Each month, the Finance Department prepares a report listing the investments for all separate entities under the jurisdiction of the City as identified in the City’s Comprehensive Annual Financial Report.
Portfolio Recap (Interest Rate)
May 2026 April 2026
Total Portfolio (weighted average) 2.22% 2.30%
Cal Class 3.70% 3.69%
Cal Class - Enhanced 3.75% 3.74%
Local Agency Investment Fund 3.81% 3.81%
Total Pooled Portfolio Balance: $135,947,004 $122,926,519 The portfolio balance increased from April to May by $13,020,485 or 10.59%. Significant Revenues for May include $2,436,561 Sales & Use Tax, $2,155,306 in Measure LC Sales Tax, $2,078,427 in Measure YM Sales Tax, and $15,438,771 in Property Taxes. Expenses include $10,607,456 for Operating & Miscellaneous, $1,008,206 for Debt Services, and $7,736,075 for Payroll & Benefits.
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The City’s temporary idle cash, those funds not immediately needed to pay current bills and not governed by bond indentures or bond resolutions, is invested by the City’s adopted Investment Policy. The City Council reviewed this policy regularly, with the latest policy adopted on March 24, 2026, by Resolution No. 26-12.
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible within the guidelines of this Investment Policy. The City attempts to achieve the highest yield obtainable through a diversified portfolio only after meeting the criteria established for safety and liquidity in that order. The principal investment objectives of the City are:
1. Preservation of capital and protection of investment principal;
2. Maintenance of sufficient liquidity to meet anticipated cash flows;
3. Attainment of a market rate of return;
4. Diversification to avoid incurring unreasonable market risks, and;
5. Compliance with the City’s Municipal Code and with all applicable City resolutions, California statutes, and Federal regulations.
The City’s portfolio is a short-term and intermediate-term fixed-income portfolio. The maximum maturity of any investment is 5 years, with consideration of anticipated cash flow requirements and known future liabilities. The City contracts with an investment advisory service (Insight Investment) to assist in the effort to maximize the returns of the City portfolio. The City’s investments include publicly traded Treasury notes, Treasury Bills, Federal Agency Investments, Time Deposits, and Local Agency Investment Fund (LAIF) under the auspices of the State Treasurer for investment. Funds invested in LAIF are available within 24 hours, and other investments are available upon maturity at full face value. These investments enable the City to meet its expenditure requirements for the next six months, as required by state law.
The City’s investment procedures are governed by Sections 53600 et. seq. of the California Government Code. Additional requirements have been placed on the City’s authorized investments by the Investment Policy (a copy is available in the Finance Department or from the City Clerk), and all investments listed on the attached report adhere to these requirements.
Attachment:
A. May 2026 Report of Investments
Interest Rate Amount Total
City of Lancaster
Wells Fargo Bank $29,960,327
City of Lancaster Account 0.00% $29,960,327
River City Bank $28,672,267
City of Lancaster ICS Sweep Account 3.89% $28,672,267
U S Bank - Safekeeping (Insight) $34,133,823
US Treasury Notes 4.70% $14,900,334
Federal Government Agencies 3.18% $8,095,007
Corporate Securities 4.37% $9,960,539
Short Term Bills and Notes 0.00% $0
Municipal/Provincial Bonds 0.60% $1,166,066
Cash & Equivalents 0.00% $11,876
Chase Bank $167,158
Certificate of Deposit 4.36% $167,158
California Class $36,315,082
City of Lancaster 3.70% $28,089,525
City of Lancaster -Enhanced Cash 3.75% $8,225,557
Local Agency Investment Fund (L.A.I.F.) $1,665,787
3.81% $1,665,787
Total City of Lancaster $130,914,444
Successor Agency for the Lancaster Redevelopment Agency California CLASS $4,533,331
Successor Agency 3.70% $4,533,331
Local Agency Investment Fund (L.A.I.F.) $499,229
Successor Agency 3.81% $499,229
Total Lancaster Successor Agency $5,032,560
Total Pooled Portfolio $135,947,004
Weighted Average 2.211%
Interest Rate Amount Total
LCE
River City Bank $1,837,474
Lancaster Choice Energy LockBox Account 0.00% $1,837,474 City of Lancaster
US Bank $38,716,893
LPA Solar Renewable Energy Issue of 2021 0.00% $1
SA Combined Project Areas Refunding Bonds 2015A & B 3.52% $3,660 SA Combined Project Areas Refunding Bonds 2016 A-1 & A-2 3.52% $9,835 SA Combined Project Areas Refunding Bonds 2016B 3.52% $4,508 LFA 2016 Assessment Revenue Bonds (Streetlights Acquisition) 3.52% $676 SA 2017 Tax Allocation Revenue Bonds (TARB) 2.52% $4
LFA LRB 2018 Construction and Improvements 3.52% $2,830,973 LFA LRB 2019 Street Improvements 3.52% $9,636,776
LFA LRB 2024 Stadium & Event Center Project 2.15% $54,993 LFA LRB 2026 MARRC 2.30% $26,175,467
Total Restricted Cash/Investments Held in Trust (note 4) $40,554,367 All investments are authorized pursuant to and consistent with the investment policy of the City of Lancaster. Policy adopted 03/24/26 under resolution number 26-12.
George N. Harris II
Finance Director
Restricted/Trustee Cash
ATTACHMENT A
MONTHLY REPORT OF INVESTMENTS
MAY 2026
Pooled Cash/Investments
MONTHLY REPORT OF INVESTMENTS
RECAP OF SECURITIES HELD
MAY 2026
Historical Cost Amortized Cost Fair Value
Unrealized Gain
(Loss)
Weighted
Average
% Portfolio/
Segment
Weighted
Average Market
Cash and Equivalents $101,825,057 $101,825,057 $101,825,057 - 1 74.90% 0.00 Corporate Bonds 9,960,539.10 9,990,569.95 9,981,374.49 (9,195.46) 834 7.33% 1.89 Government Agencies 8,095,007.22 8,252,413.22 8,255,821.91 3,408.69 821 5.95% 1.87 Government Bonds 14,900,334.44 15,085,018.86 15,201,233.21 116,214.35 766 10.96% 1.95 Municipal/Provincial Bond 1,166,066.00 1,143,560.41 1,130,612.67 (12,947.74) 1,191 0.86% 2.95 Short Term Bills and Notes - - - $0 0 0.00% 0.00 $135,947,004 $136,296,620 $136,394,100 $97,480 813 100.00% 1.95
74.90%
7.33%
5.95%
10.96%
0.86%
0.00%
Investments Held as of 05.31.2026
Cash and Equivalents
Corporate Bonds
Government Agencies
Government Bonds
Municipal/Provincial Bonds
Short Term Bills and Notes
MONTHLY REPORT OF INVESTMENTS
MATURITY DISTRIBUTION
MAY 2026
Maturity Historical Cost Percent
Under 90 Days 101,825,057.39$ 74.90%
91 to 180 Days 3,329,195.33$ 2.45%
180 Days to 1 Year 2,652,183.06$ 1.95%
1 to 2 Years 7,438,431.27$ 5.47%
2 to 3 Years 8,490,963.01$ 6.25%
3 to 4 Years 5,957,373.07$ 4.38%
4 to 5 Years 6,253,801.02$ 4.60%
Over 5 Years -$ 0.00%
135,947,004.15$ 100.00%
$0
$20
$40
$60
$80
$100
$120
Under 90 Days91 to 180 Days 180 Days to 1
Year
1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years Over 5 Years
(Millions) Maturity Distribution
MONTHLY REPORT OF INVESTMENTS
POLICY LIMITS
MAY 2026
(1) This is the actual City bank account balance as of 05/31/2026. It only reflects checks that have been presented for payment and deposits received by the bank.
The balance on deposit per the City books would reflect reductions for all checks and warrants issued and all deposits transmitted.
(2) This is the safekeeping account utilized for investing City funds pursuant to and consistent with the investment policy adopted on 03/24/2026. The current portfolio consists of treasury notes, government agencies, corporates, and CDs.
(3) Pooled Portfolio:
% of Portfolio Policy Limit
Cash 43.14% None
CDs 0.12% 30% of total portfolio
Commercial Paper 0.00% 40% of total portfolio
US Treasury 10.96% None
Federal Securities 5.95% None
Corporate Securities 7.33% 30% of total portfolio
Municipal/Provincial 0.86% None
California CLASS 30.05% None
LAIF 1.59% None
(4) These are restricted cash and investments are held in trust by the banks indicated.
These amounts cannot be pooled for other investments.
STAFF REPORT
City of Lancaster
CC 18
6/23/2026
TN
Date:June 23, 2026
To: Mayor Parris and City Council Members
From:George N. Harris II, Senior Director/Treasurer – Administrative Services Subject:Amendments 2 & 3 to CliftonLarsonAllen LLP (CLA) Agreement Recommendations:
1. Approve a not to exceed amount of $558,000 to be paid to CliftonLarsonAllen LLP
2. (CLA) for all work and services described in the Scope of Services.
3. Approve Amendment No. 2 of the CliftonLarsonAllen LLP (CLA) professional auditing services agreement extending the term of the agreement by 1 year to June 30, 2026.
4. Update Exhibit “B” of the Schedule of Pricing & Contract Term to increase FY2025/26 pricing to a not to exceed amount of $140,000 for all services.
5. Approve Amendment No. 3 of the CliftonLarsonAllen LLP (CLA) professional auditing services agreement extending the term of the agreement by 1 year to June 30, 2027.
6. Authorize the City Manager or his designee to finalize and execute the terms and conditions of the proposed Second and Third Amendments.
G.C. Section 84308: No
Fiscal Impact:
Sufficient funds are available in account 10117100-5710 for FY 2025 and 2026. Staff will budget additional funding in future fiscal year.
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3 2
Background:
On March 22, 2022, the City awarded the professional auditing services agreement to CliftonLarsonAllen LLP (CLA) through a competitive bid. These services included an Annual Comprehensive Financial Report (ACFR) and its component unit financial statements for the City of Lancaster, Lancaster Public Financing Authority, Lancaster Housing Authority, Lancaster Community Services Foundation, California Choice Energy Authority and the Lancaster Choice Energy. Also in 2022, the Government Accounting Standards Board (GASB) released new standards resulting in an additional need for services provided by CLA. On May 07,2024, the Council approved Amendment No 1, which amended the scope of services under the original agreement.
Attachments:
Amendment No 2 for the professional auditing services agreement Amendment No 3 for the professional auditing services agreement Professional Service Agreement Audit Services
AMENDMENT NO. 2 TO AGREEMENT FOR PROFESSIONAL CONSULTING
SERVICES BY AND BETWEEN THE CITY OF LANCASTER AND CLIFTON LARSON ALLEN LLP (EFFECTIVE JULY 01, 2025)
This Amendment (“Amendment No. 2”) is hereby entered into by and between the City of Lancaster, a Municipal Corporation, in the State of California, and Clifton LarsonAllen LLP (CONSULTANT) with respect to Exhibit “A & B” of the Agreement for professional auditing services between the parties dated March 22, 2022 (“Agreement”).
The parties agree as follows:
1. Section 7A of the Agreement is hereby replaced as follows:
The total compensation to be paid by OWNER to CONSULTANT for all work and services described in the Scope of Services is not to exceed $558,000. CONSULTANT’S fees and charges for the work and services performed shall in no event exceed those set forth in Exhibit “B” attached hereto and made a part hereof.
2. Extend Agreement as provided in Exhibit “A”, Scope of the Work to be Preformed – For one, one-year extension, extending the agreement to June 30, 2026.
3. Update Pricing that is noted in Exhibit “B” of the Schedule of Pricing & Contract Term – Increase FY2025/26 pricing to $140,000.
4. All other terms and provisions of the Agreement are hereby reaffirmed.
In witness whereof the parties have executed the Amendment on the date set forth below:
CITY OF LANCASTER CONTRACTOR
____________________________ _____________________________ Trolis Niebla, City Manager CliftonLarsonAllen LLP, Title
Dated: _____________________ Dated: ______________________
ATTEST:
____________________________
Andrea Alexander
City Clerk
____________________________
Allison E. Burns, Esq.
City Attorney
AMENDMENT NO. 3 TO AGREEMENT FOR PROFESSIONAL CONSULTING
SERVICES BY AND BETWEEN THE CITY OF LANCASTER AND CLIFTON LARSON ALLEN LLP (EFFECTIVE JULY 01, 2026)
This Amendment (“Amendment No. 3”) is hereby entered into by and between the City of Lancaster, a Municipal Corporation, in the State of California, and Clifton LarsonAllen LLP (CONSULTANT) with respect to Exhibit “A & B” of the Agreement for professional auditing services between the parties dated March 22, 2022 (“Agreement”).
The parties agree as follows:
1. Extend Agreement as provided in the Continuation of Service Proposal, one-year extension, extending the agreement to June 30, 2027.
2. All other terms and provisions of the Agreement are hereby reaffirmed.
In witness whereof the parties have executed the Amendment on the date set forth below:
CITY OF LANCASTER CONTRACTOR
____________________________ _____________________________ Trolis Niebla, City Manager CliftonLarsonAllen LLP, Title
Dated: _____________________ Dated: ______________________
ATTEST:
____________________________
Andrea Alexander
City Clerk
____________________________
Allison E. Burns, Esq.
City Attorney
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
CliftonLarsonAllen LLP
2875 Michelle Drive, Suite 300
Irvine, CA 92606
phone 714-795-5483 fax 714-978-7893
claconnect.com
June 10, 2026
Mr. George Harris
Finance Director
City of Lancaster
44933 Fern Avenue
Lancaster, CA 93534
Dear Mr. Harris:
We are pleased to present our proposed fees to continue to provide audit and related services to the City of Lancaster for the fiscal year ending June 30, 2027, wi th option years for fiscal years ending June 30, 2028, and June 30, 2029.
The scope of services and related proposed fees are Included in the attached schedule. In addition to the City contract for professional services, for each year of the audit, we will request a statement of work which provides additional details on the scope of services and responsibilities of management and the auditors.
Our fees are based on timely delivery of services pr ovided, the experience of personnel assigned to the engagement, and our commitment to meeting your deadlines.
Sincerely,
CliftonLarsonAllen LLP
Joe Ludin
Principal
(714) 795-5483
[email protected]
Fiscal Year Fiscal Year Fiscal Year
2026-2027 2027-2028 2028-2029
City Audit and Related Reports 96,850 99,800 102,800 Gann Limit AUP Report 825 850 875 State Controllers Reports - City, Lancaster Choice Energy, Lancaster Financing Authorit
y 8,860 9,130 9,400
Single Audit of Federal Grants (1) 6,000 6,180 6,400 Assistance with GASB 87 and 96 20,600 21,250 21,900 133,135 137,210 141,375
5% Technology Fee 5,360 5,627 5,909 Total 138,495 142,837 147,284
(1) This fee contemplates 1 major programs, each additional program will be audited for an additional cost of $4,000.
Option Years
1 AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES
THIS AGREEMENT FOR CONSULTING SERVICES (this “AGREEMENT”) is made and entered into this 22nd day of March, 2022, by and between the CITY OF LANCASTER, a municipal corporation and charter city (the “OWNER”), and CliftonLarsenAllen LLP (the “CONSULTANT”).
RECITALS
WHEREAS, OWNER desires to engage CONSULTANT to perform certain technical and professional services, as provided herein, identified as:
PROFESSIONAL AUDITING SERVICES FOR
FISCAL YEARS 2022/23, 2023/24, 2024/25
WHEREAS, the principal members of CONSULTANT are qualified and duly registered/licensed under the laws of the State of California, and CONSULTANT desires to accept such engagement;
NOW, THEREFORE, the parties agree as follows:
1. Parties.
The parties to this AGREEMENT are:
A. OWNER: City of Lancaster.
B. CONSULTANT: CliftonLarsonAllen LLP
2. Notices. All written notices required by or related to this AGREEMENT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither party to this AGREEMENT shall refuse to accept such mail; parties to this AGREEMENT shall promptly inform the other party of any changes of address. All notices required by this AGREEMENT are effective on the day of receipt, unless otherwise indicated herein.
OWNER City of Lancaster
Attn: George Harris
44933 North Fern Avenue
Lancaster, California 93534
CONSULTANT Nitin Patel, Principal
CliftonLarsonAllen LLP
2875 Michelle Drive, Suite 300
Irvine, CA 92606
3. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without prior written consent of the other party, and any such assignments without said consent shall be void.
DocuSign Envelope ID: 5DD78301-D264-4492-91EF-21565CA2DBA6
2 4. Incorporation by Reference. The CONSULTANT’S Proposal is hereby incorporated in and made a part of this AGREEMENT. CONSULTANT agrees to comply with all of the requirements set forth therein.
5. Precedence of AGREEMENT Documents. If there is a conflict between AGREEMENT documents, the document highest in precedence shall control. The precedence shall be:
First: This AGREEMENT
Second: The CONSULTANT’S Proposal
6. Description of Work. OWNER hereby engages CONSULTANT, and CONSULTANT accepts such engagement, to perform the technical and professional services set forth in the “Scope of Services” attached hereto as Exhibit “A”. CONSULTANT shall perform and complete, in a manner satisfactory to OWNER, all work and services set forth in Scope of Services. The Director of Finance or his or her designee shall have the right to review and inspect the work during the course of its performance at such times as may be specified by the Director of Finance, or his or her designee.
7. Obligations of the OWNER.
A. The total compensation to be paid by OWNER to CONSULTANT for all work and services described in Scope of Services is lump sum $294,600.00. CONSULTANT’S fees and charges for the work and services performed shall in no event exceed those set forth in Exhibit “B” attached hereto and made a part hereof.
B. No payment made hereunder by OWNER to CONSULTANT, other than the final payment, shall be construed as an acceptance by OWNER of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this AGREEMENT.
8. Obligations of the CONSULTANT.
A. CONSULTANT shall perform as required by this AGREEMENT. CONSULTANT also warrants on behalf of itself and all subcontractors engaged for the performance of this AGREEMENT.
B. CONSULTANT shall be responsible for payment of all employees' and subcontractor's wages and benefits, and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance, and Social Security.
9. Audit. OWNER shall have the option of inspecting and/or auditing all records and other written materials used by CONSULTANT in preparing its statements to OWNER as a condition precedent to any payment to CONSULTANT.
10. Hold Harmless and Indemnification. CONSULTANT agrees to indemnify and hold harmless the OWNER, its officers and employees, from and against any and all claims, losses, obligations, or liabilities whatsoever, including reasonable Attorney’s fees, incurred in or in any manner arising out of or related to CONSULTANT’S negligent or willful wrongful acts, errors or omissions, or those of its employees or agents.
CONSULTANT agrees to defend OWNER, its officers and employees, from and against any and all claims arising from any alleged negligent or wrongful acts, errors or omissions on the part of CONSULTANT or on the part of its employees.
DocuSign Envelope ID: 5DD78301-D264-4492-91EF-21565CA2DBA6
3 11. Amendments. Any amendment, modification, or variation from the terms of this AGREEMENT shall be in writing and shall be effective only upon mutual written approval by the Director of Finance and CONSULTANT.
12. Non-Discrimination and Equal Employment Opportunity.
A. In the performance of this AGREEMENT, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, physical or mental disability or age. CONSULTANT will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, physical or mental disability or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship.
B. The provisions of subsection A above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any services under this AGREEMENT. OWNER shall have access to all documents, data and records of CONSULTANT and its subcontractors for purposes of determining compliance with the equal employment opportunity and non- discrimination provisions of this Section.
13. Termination for Convenience. The governing board of the OWNER may terminate this AGREEMENT at any time without cause by giving fifteen (15) days written notice to CONSULTANT of such termination and specifying the effective date thereof. In that event, all finished or unfinished documents and other materials shall, at the option of OWNER, become the OWNER's property. If this AGREEMENT is terminated by OWNER as provided herein, CONSULTANT will be paid a total amount equal to its costs as of the termination date, plus ten percent (10%) of that amount for profit. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this AGREEMENT.
14. Termination for Cause.
A. The governing board of the OWNER may, by written notice to CONSULTANT, terminate the whole or any part of this AGREEMENT in any of the following circumstances:
(1) If CONSULTANT fails to perform the services required by this AGREEMENT within the time specified herein or any authorized extension thereof; or
(2) If CONSULTANT fails to perform the services called for by this AGREEMENT or so fails to make progress as to endanger performance of this AGREEMENT in accordance with its terms, and in either of these circumstances does not correct such failure within a period of ten (10) days (or such longer period that OWNER may authorize in writing) after receipt of notice from OWNER specifying such failure.
B. In the event OWNER terminates this AGREEMENT in whole or in part as provided above in paragraph A of this Section, OWNER may procure, upon such terms and in such manner as it may deem appropriate, services similar to those terminated.
C. If this AGREEMENT is terminated as provided above in paragraph A, OWNER may require CONSULTANT to provide all finished or unfinished documents, data, reports, etc., prepared by DocuSign Envelope ID: 5DD78301-D264-4492-91EF-21565CA2DBA6
4 CONSULTANT. Upon such termination, CONSULTANT shall be paid an amount equal to the contract amount, less the cost of hiring another CONSULTANT to complete CONSULTANT's services. In the event no new CONSULTANT is employed, CONSULTANT shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to completed work and work in progress, complete and incomplete reports, and other documents whether delivered to OWNER or in possession of CONSULTANT, and authorized reimbursement expenses.
D. If, after notice of termination of the AGREEMENT under the provisions of this Section, it is determined, for any reason, that CONSULTANT was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 14.
15. Independent Contractor. CONSULTANT is an independent contractor and shall have no power or authority to incur any debt, obligation or liability on behalf of the OWNER. It is expressly understood between the parties to this AGREEMENT that no employee/employer relationship is intended; CONSULTANT is an independent contractor.
16. Insurance.
A. (1) The CONSULTANT, at its expense, shall maintain in effect at all times during the performance of work under this AGREEMENT not less than the following coverage and limits of insurance, which shall be maintained with insurers listed "A-, VIII" or better in the Best's Key Rating Guide:
Commercial General Liability
Each Occurrence $1,000,000
Per Project General Aggregate $2,000,000
Including Products/Completed Operations
Including Contractual Liability/Independent Contractors Including Broad Form Property Damage
Commercial Automobile Liability
Combined Single Limit per Accident for
Bodily Injury and Property Damage $1,000,000
Workers Compensation
As Required by the State of California Statutory Limits
Employer’s Liability
Each Accident $1,000,000
Bodily Injury by Disease $1,000,000
Each Employee $1,000,000
Professional Liability
Each Occurrence $1,000,000
General Aggregate $1,000,000
B. For General Liability insurance shall be at least as broad as ISO form CG2010 11/85 or CG2010 07/04 and CG2037 07/04 combined, or an equivalent providing ongoing and completed operations.
Commercial Auto coverage shall be at least as broad as ISO form CA00 01.
DocuSign Envelope ID: 5DD78301-D264-4492-91EF-21565CA2DBA6
5 C. The CONSULTANT’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insured’s liability.
D. A Waiver of Subrogation must be provided on behalf of the Certificate Holder for the Workers Compensation/Employers Liability policies and a copy of the endorsement must accompany the certificate.
E. Any deductibles or self-insurance retentions must be declared and approved by the OWNER. At the option of the OWNER, either the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the OWNER insured entities or the insurer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
F. All insurance shall be primary and non-contributory as respects the OWNER insured entities. Any insurance or self-insurance maintained by the OWNER insured entities shall be in excess of the CONSULTANT’S insurance and shall not contribute with it.
G. The coverage provided under this contract shall not contain any special limitations on the scope of protection afforded to the OWNER insured entities.
H. Insurance provided and maintained by CONSULTANT must be placed with insurers with a rating of A-, VIII or better by Best’s Key Rating Guide, latest edition.
I. Insurance written on a “claims made” basis must be renewed for a period of five (5) years after this contract expires or is terminated. Such insurance must have the same coverage and limits as the policy that was in effect during the term of this contract and will cover CONSULTANT for all claims made by the OWNER insured entities arising out of any acts or omissions of CONSULTANT or its officers, employees, or agents during the time this AGREEMENT was in effect.
J. CONSULTANT shall furnish the OWNER with Certificates of Insurance and with original endorsements effecting coverage required by this contract. The certificates for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All certificates and endorsements are to be received and approved by the OWNER before work commences. The OWNER reserves the right to require complete, certified copies of all required insurance policies at any time.
K. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the OWNER insured entities.
L. Certificates of Insurance must be deposited with the OWNER for all coverage required by this contract. Certificates shall meet the following requirements:
(1) Show that the insurance policy has been endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after 30 days prior written notice (10 days written notice for non-payment) by Certified Mail, return receipt requested to the OWNER.
(2) List in the “Descriptions of Operations/Locations/Vehicles/Special Items” section:
RFP 760-22 Professional Auditing Services
DocuSign Envelope ID: 5DD78301-D264-4492-91EF-21565CA2DBA6
6 City of Lancaster, its elected officials, officers, employees and volunteers are included as additional covered parties, but only insofar as the operations under this contract are concerned.
(3) List in the “Certificate Holder” section:
City of Lancaster, 44933 Fern Avenue, Lancaster, California 93534.
M. CONSULTANT shall include all subcontractors as an insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. Subcontractors are subject to the same insurance requirements as the CONSULTANT.
N. The coverage shall contain no special limitations on the scope of protection afforded to the insured entities. The CONSULTANT’S insurance coverage shall be primary insurance as respects the OWNER’S insured entities.
17. Commencement and Completion of Work. The execution of this AGREEMENT by the parties does not constitute an authorization to proceed. The services of CONSULTANT shall commence when the OWNER, acting by and through its Director of Finance or his or her designee, has issued the Notice to Proceed.
CONSULTANT shall have no claim for compensation for any services or work which has not been authorized by the OWNER's Notice to Proceed.
18. Extension of Time for Completion of Work.
A. If, at any time, the work is delayed due to suspension order by OWNER, or due to any other cause which, in the reasonable opinion of the OWNER, is unforeseeable and beyond the control and not attributable to the fault or negligence of CONSULTANT, then CONSULTANT shall be entitled to an extension of time equal to said delay, subject to the OWNER's right to terminate this AGREEMENT pursuant to Section
14. B. CONSULTANT shall submit to OWNER a written request for an extension of time within ten (10) days after commencement of such delay, and failure to do so shall constitute a waiver thereof.
OWNER shall, in its sole discretion, determine whether and to what extent any extensions of time shall be permitted.
C. No extension of time requested or granted hereunder shall entitle CONSULTANT to additional compensation unless, as a consequence of such extension, additional work must be performed. In such event, OWNER shall in good faith consider any request for additional compensation submitted by CONSULTANT.
19. Ownership of Documents. All reports, studies, data, and other documents prepared or obtained by CONSULTANT in the course of performing the work required by this AGREEMENT shall be the property of the OWNER. Basic notes, findings, studies, reports, computations and similar data prepared or obtained by CONSULTANT under this AGREEMENT shall, upon request, be made available to OWNER without restriction or limitation on their use.
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7 20. Data Provided to CONSULTANT. OWNER shall provide to CONSULTANT, without charge, all data, including reports, records, and other information, now in the OWNER's possession which may facilitate the timely performance of the work described in Scope of Services.
21. CONSULTANT's Warranties and Representations.
CONSULTANT warrants and represents to OWNER as follows:
A. CONSULTANT has not employed or retained any person or entity, other than a bona fide employee working exclusively for CONSULTANT, to solicit or obtain this AGREEMENT.
B. CONSULTANT has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for CONSULTANT, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the execution of this AGREEMENT. Upon any breach or violation of this warranty, OWNER shall have the right, in its sole discretion, to terminate this AGREEMENT without further liability, or, in the alternative, to deduct from any sums payable hereunder the full amount or value of any such fee, commission, percentage or gift.
C. CONSULTANT has no knowledge that any officer or employee of the OWNER has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of the CONSULTANT, and that if any such interest comes to the knowledge of CONSULTANT at any time, a complete written disclosure of such interest will be made to OWNER, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws.
D. Upon the execution of this AGREEMENT, CONSULTANT has no interest, direct or indirect, in any transaction or business entity which would conflict with or in any manner hinder the performance of services and work required by this AGREEMENT, nor shall any such interest be acquired during the term of this AGREEMENT.
22. Resolution of Disputes.
A. Disputes regarding the interpretation or application of any provisions of this AGREEMENT shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.
B. If the parties cannot resolve the dispute through good faith negotiations, either party may give Notice of Dispute to the other party. The Notice of Dispute shall state the nature of the dispute and the corrective action necessary to remedy the dispute.
After Notice of Dispute, the parties shall first attempt to resolve any disputes by mediation. The parties shall agree on a single mediator. Mediation shall be conducted in Lancaster, California.
Each party shall pay its own attorneys’ fees and the costs of mediation shall be split equally between the parties.
If the dispute has not been resolved by mediation within 45 days after Notice of Dispute, or the parties are unable to agree to a mediator, within 15 days after Notice of Dispute, then, the dispute may, upon agreement of the parties be resolved by binding arbitration.
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8 C. If any action at law or in equity is brought to enforce or interpret any provisions of this AGREEMENT, the prevailing party in such action shall be entitled to reasonable attorney's fees, cost and necessary disbursements, in addition to such other relief as may be sought and awarded.
23. Exhibits.
The following exhibits to which reference is made in this AGREEMENT are deemed incorporated herein in their entirety:
Exhibit "A" Scope of Services
Exhibit “B” Payment Clause & Term
24. Governing Law.
This AGREEMENT shall be governed by the laws of the State of California.
25. Effective Date.
This AGREEMENT shall become effective as of the date set forth below on which the last of the parties, whether OWNER or CONSULTANT, executes this AGREEMENT.
[Signatures begin on next page.]
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9 IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed and attested by their respective officers thereunto duly authorized.
“OWNER”
City OF LANCASTER
LANCASTER, CALIFORNIA
Approved By Department Head:
By:
Director of Finance – George Harris
Dated:
By:
Jason Caudle, City Manager
Dated:
"CONSULTANT"
CliftonLarsonAllen, LLP
By:
Nitin Patel, Principal
Dated:
ATTEST:
Andrea Alexander
City Clerk
APPROVED AS TO FORM:
Allison E. Burns, Esq.
City Attorney
DocuSign Envelope ID: 5DD78301-D264-4492-91EF-21565CA2DBA6 March 25, 2022 | 7:58:16 AM PDT
March 25, 2022 | 6:03:36 PM CDT
April 7, 2022 | 11:21:03 AM PDT
10 Exhibit A
Scope of Work & Requirements
Scope of the Work to be Performed
The City desires an Annual Comprehensive Financial Report (ACFR) and its component unit financial statements for the City of Lancaster, Lancaster Public Financing Authority, Lancaster Housing Authority, Lancaster Community Services Foundation, California Choice Energy Authority and the Lancaster Choice Energy, to be prepared by the independent Auditor and be fully GASB compliant for the fiscal year ended June 30, 2022 and each of the subsequent years, June 30, 2023 and 2024 of the audit Firm’s contract with the City. The City will be planning to submit the to the Government Finance Officers Association (GFOA) for review in their Certificate of Achievement for Excellence in Financial Reporting program.
Consultant agrees to perform the following tasks:
1. Conduct the examination of the City’s annual financial statements in accordance with auditing standards generally accepted in the United States, Government Auditing Standards promulgated by the Comptroller General of the United States. In addition, the minimum auditing standards set forth in the Single Audit Act and OMB Circular A-133 must be met in those years in which a Single Audit is required. The single audit report should include an appropriate schedule of expenditures of federal awards, footnotes, findings and questioned costs, including reportable conditions and material weaknesses, and a follow up on prior audit findings, where required.
2. Render an independent opinion on the fair presentation of the City’s basic financial statements on the basis of their conformity with generally accepted accounting principles. The Auditor is not required to audit the supporting statistical schedules contained in the Annual Comprehensive Financial Report (ACFR). However, the Auditor is to provide an “in-relation to” report on the supporting schedules based on auditing procedures applied during the audit of general-purpose financial statements and the combining and individual fund financial statements schedules.
3. Prepare an evaluation of the City’s compliance with applicable laws and regulations governing the City, including agreed-upon auditing procedures each fiscal year pertaining to compliance with the City’s Investment Policy.
4. Perform agreed-upon audit procedures pertaining to the City’s GANN Limit and render a letter, annually, to the City regarding compliance.
5. Issue the appropriate audit reports on internal control and compliance. In the required reports on internal controls, the Auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report.
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11 6. Prepare and submit a report as communication with those charged with governance, inclusive of the Management Letter, as required by auditing standards, at the conclusion of the annual audit.
The report shall include all significant opportunities for realistically improving internal controls of the City’s operation and procedures that are discovered or observed by the Auditor in the course of the annual audit and management response to the recommendation. Prior to completion of the Management Letter, the Auditor shall meet with the Finance Director and/or City Manager to review findings and recommendations in detail before the final Auditor letters and City responses are finalized.
7. Prepare various financial reports and schedules of the City’s ACFR, including the Government- Wide Financial Statements, Fund Financial Statements, Notes to the Basic Financial Statements, Required Supplementary Information, Supplementary Schedules, and portions of the Statistical Section. The City will ultimately be responsible for these financial reports, as well as preparing the Introductory Section, Management Discussion and Analysis, and portions of the statistical sections of the ACFR. The Auditor shall assist in finalizing the City's ACFR by conducting a review of all schedules, notes, etc., to ensure full compliance with all current GASB pronouncements.
8. Verify the implementation of recommended improvement from the prior year submission to Certificate of Achievement for Excellence in Financial Report from the Government Finance Officers Association (GFOA) under the ACFR award program. The City has received the Certificate of Achievement for Excellence in Financial Report from GFOA previously and will expect the ACFR to meet the requirements of the program.
9. Upon request by city staff, present and discuss the annual basic financial statements, results of operation, and Management Letter contents at a meeting of the City Council.
10. In addition to completing the annual audit, the Auditor shall be available during normal business hours, throughout the contract period, to provide advice and guidance on financial reporting, the implementation of new GASB pronouncements, and regulations affecting local government accounting, upon request by city staff. The Auditor will be expected to keep the City abreast of the working requirements of all new accounting and financial reporting pronouncements of the Governmental Accounting Standards Board (GASB), the United States Office of Management and Budget, and the State of California. It is expected that the successful Firm will designate a senior staff member, at the manager, director or partner level, who will be responsible for responding to City phone calls and email communications within a reasonable response period
11. The Auditor shall prepare the Annual State Controller’s Reports for the City and Lancaster Choice Energy.
Auditing Standards to be Followed
Consultant agrees to conduct the audit in accordance with:
1. The standards set forth by the Government Accounting Standards Board (GASB)
2. The Generally Accepted Government Auditing Standards issued by the Comptroller General of the U.S. Government Accountability Office (GAO)
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12 3. Generally accepted auditing standards set forth by the American Institute of Certified Public Accounts.
4. The provisions of the U.S. Office of Management and Budget (OMB) Circular A133, Audits of States, Local Governments, and Non-Profit Organizations.
Internal Controls and Compliance Reports
In the required reports on internal controls, the Consultant shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the City’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report.
Non-reportable conditions discovered by the Consultant shall be reported in a separate letter to management, which shall be referred to in the report on internal controls.
The reports on compliance shall include all instances of non-compliance.
Consultant shall assure themselves that the City is informed of each of the following:
1. The Consultant’s responsibility under generally accepted auditing standards
2. Significant accounting policies
3. Management judgments and accounting estimates
4. Significant audit adjustments
5. Other information in documents containing audited financial statements
6. Disagreements with management
7. Management consultation with other accountants
8. Major issues discussed with management prior to retention
9. Difficulties encountered in performing the audit
Working Paper Retention
All working papers and reports must be retained at the Consultant's expense for a minimum of seven (7) years, unless the Consultant is notified in writing by the City of the need to extend the retention period.
The Consultant will be required to make working papers available to the City or any government agencies included in the audit of federal grants. In addition, the Consultant shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.
Irregularities and Illegal Acts
Consultant shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties: City Manager, City Attorney and Finance Director.
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13 Exhibit B
Schedule of Pricing & Contract Term
This Agreement shall be in effect for three fiscal years as outlined below. The contract may be extended for two additional 1-year terms as agreed upon by both parties.
Total all-inclusive maximum price for the initial contract term is $294,600 as broken down by year.
Initial Contract Term
Years 1-3
Optional
Year 1
Optional
Year 2
Service 2021/22 2022/23 2023/24 2024/25 2025/26
SECTION I - CITY
City Audit and Related Reports
$82,000 $84,500 $87,500 $91,000 $94,000
GANN Limit Review Report
$500 $500 $600 $700 $800
State Controllers Reports –
City, Lancaster Choice Energy,
Lancaster Financing Authority,
California Choice Energy
Authority
$7,500 $7,800 $8,100 $8,400 $8,600
Single Audit and Related
Reports (1)
$5,000 $5,200 $5,400 $5,600 $5,800
TOTAL FOR
FISCAL YEAR
(not-to exceed)
$95,000 $98,000 $101,600 $105,700 $109,200
(1) Includes one major program, each additional major program is $4,000
Payment Terms
Progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the Consultant’s proposal. Interim billings shall cover a period of not less than a calendar month.
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14 Auditor’s Standard Billing Rates
Auditors Standard Hourly Billing Rates by Position
Position 2021/22 2022/23 2023/24 2024/25 2025/26
Partner $350 $360 $370 $380 $380
Manager $250 $260 $270 $280 $290
Senior Accountant $150 $155 $160 $165 $170
Staff Accountant $125 $130 $135 $140 $145
Clerical $110 $115 $120 $125 $130
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STAFF REPORT
City of Lancaster
CC 19
6/23/2026
TN
Date:June 23, 2026
To: Mayor Parris and City Council Members
From: Larissa De La Cruz – Assistant City Manager
Sydney Yeseta, Manager – Economic Development
Subject:Purchase and Sale Agreement with Los Angeles County Recommendations:
1. Find the purchase of property categorically exempt under the California Environmental Quality Act and authorize staff to execute and file a Notice of Exemption.
2. Approve the Purchase and Sale Agreement with Los Angeles County for Assessor’s Parcel Number (APN): 3107-022-900, located in the Fox Field Specific Plan area.
3. Authorize the City Manager, or his designee, to finalize, negotiate, and execute (i) a Purchase and Sale Agreement; and (ii) all documents necessary or appropriate to complete the transaction.
G.C. Section 84308: No
Fiscal Impact:
The fair market value and purchase price is $150,000. Sufficient funds are available in Account 101.10300.8010.
Background:
As a regional emergency preparedness and response facility, the Parris Center is designed to serve as a hub for emergency sheltering, disaster response coordination, and essential community services during natural disasters, public safety incidents, and other emergency events.
Reliable access to utilities such as electricity and water are a fundamental component of emergency preparedness and continuity of operations. To provide needed water resources and infrastructure, 2 4
3 4
the City’s acquisition of the subject parcel from Los Angeles County is necessary. The subject parcel is located near Avenue G-8 and 30th Street West, about one half mile from the Parris Center.
Its strategic location makes it uniquely suited to support this infrastructure project.
Following City Council’s action, the purchase and sale agreement will go before the Los Angeles County Board of Supervisors for approval. Should the agreement be approved by both entities and the City acquires the property, any proposed project will be subject to obtaining all necessary land use approvals and permits from the City.
SY/hb
Attachments:
Draft Purchase and Sale Agreement
Notice of Exemption
HOA.105883420.1
PURCHASE AND SALE AGREEMENT
SELLER: COUNTY OF LOS ANGELES,
a body corporate and politic
BUYER: CITY OF LANCASTER,
a California municipal corporation and charter city
DATED: __________________, 2026
HOA.105883420.1 2
PURCHASE AND SALE AGREEMENT
This PURCHASE AND SALE AGREEMENT (Agreement) is entered into and is effective as of ______________, 2026 ( Effective Date ) by and between the COUNTY OF LOS ANGELES, a body corporate and politic ( Seller), and the CITY OF LANCASTER, a California municipal corporation and charter city (Buyer). Each of Buyer and Seller are occasionally referred to herein as a Party and collectively as the Parties.
RECITALS
A. Seller is the owner of unimproved real property located at W Avenue G and 30th St W in the City of Lancaster, County of Los Angeles, State of California.
B. Seller has offered to sell to Buyer the real property described herein for the price and subject to the terms set forth below. Buyer has considered the offer by Seller and agrees to buy from Seller the real property, as more specifically described below.
C. In addition to the Purchase Price, and as material consideration to Seller in agreeing to enter into this Agreement, Buyer has agreed to pay to Seller the Independent Consideration Amount as more fully set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer agree as follows:
1. Purchase and Sale. On the terms and conditions contained in this Agreement, Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller the unimproved real property located at West Avenue G and 30th Street West in the City of Lancaster, County of Los Angeles, State of California, with APN 3107 -022-900, and legally described and depicted on Exhibit A, together with all of Seller's rights, title and interest in and to any improvements located thereon; (a) all appurtenances, hereditaments, easements, rights-of-way, reversions, remainders, development rights, well rights, water rights and air rights; and (b) any other rights or privileges appurtenant to such real property (collectively, the "Property"). Seller reserves unto itself all oil, gas, hydrocarbons, or other minerals in and under the Property, without the use of the surface or subsurface to a depth of 500 feet, measured vertically, from the surface of the Property.
2. No Escrow. Given the governmental nature of the Parties, no escrow shall be required under this Agreement. The Parties shall make the deliveries required at the Closing directly to one another, in the sequence provided in Section 11.01(c). Buyer shall obtain the Title Policy described in Section 6.04, at Buyer's sole cost and expense, directly from the Title Company and outside of escrow.
Buyer's Initials: ____ Seller's Initials: ____
3. Purchase Price.
3.01 Purchase Price. The purchase price (Purchase Price) to be paid by Buyer for the Property shall be One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00), payable HOA.105883420.1 3
at the time and in the manner provided in Section 3.02 and Section 11.01(c). The Purchase Price shall be paid in cash or certified funds.
(a) Independent Consideration. Within two (2) days after the Effective Date, Buyer shall pay to Seller the independent consideration amount of One Hundred and 00/100 Dollars ($100.00) ( Independent Consideration Amount ) to be retained by Seller as non - refundable independent consideration but applicable to the Purchase Price. The Independent Consideration Amount has been bargained for and agreed to as consideration for Seller's execution and delivery of this Agreement and Seller holding the Property off the market for a period commencing as of the Effective Date and continuing until the Closing and for the rights and privileges granted to Buyer herein, including any and all rights granted to Buyer to terminate this Agreement under the circumstances provided for herein. Notwithstanding anything to the contrary contained in this Agreement, the Independent Consideration Amount shall be non- refundable in all events, except for Seller's default hereunder. If the Closing occurs, a credit shall be applied to the Purchase Price based upon payment of the Independent Consideration Amount.
3.02 Closing. Subject to the Conditions Precedent set forth in Sections 6, 9 and 10 of this Agreement, the closing of this transaction ( Closing) shall occur on ______________, 2026 (the Closing Date), unless an extension is otherwise agreed to in writing by both Parties.
In no event shall the Closing occur after ______________, 2026 (the Outside Closing Date). If the Closing has not occurred on or before the Outside Closing Date for any reason other than a default by a Party, either Party may terminate this Agreement by written notice to the other Party, and neither Party shall thereafter have any further rights or obligations hereunder except those that expressly survive termination. At the Closing, Seller shall deliver the Deed and the Title Company shall be irrevocably and unconditionally committed to issue the Title Policy, all as provided in Sections 6.04 and 11.01, and Buyer shall pay the Purchase Price in the manner and within the time provided in Section 11.01(c).
4. Preliminary Due Diligence; As-Is Purchase; Release.
4.01 No Representation or Warranty. The Seller makes no representation or warranty whatsoever regarding the Property. Neither the Seller nor any of its respective officers, directors, employees, attorneys, engineers, agents or representatives shall be deemed to make or have made any representation or warranty as to the adequacy, validity, accuracy, fitness for a particular purpose or completeness of any Property documents provided to Buyer by Seller, and neither Seller nor any of its officers, directors, employees, attorneys, engineers, agents or representatives shall have any liability resulting from the use of or reliance on any Property documents. If this transaction does not close for any reason, Buyer shall not use any Property documents provided to Buyer and shall return the same and any copies thereof to the Seller.
4.02 "As Is" Purchase. BUYER HAS AGREED TO ACCEPT POSSESSION OF THE PROPERTY UPON THE CLOSING ON AN "AS IS" BASIS. SELLER AND BUYER AGREE THAT THE PROPERTY WILL BE SOLD "AS IS, WHERE IS, WITH ALL FAULTS" WITH NO
RIGHT OF SET-OFF OR REDUCTION IN THE PURCHASE PRICE, AND SUCH SALE WILL BE
WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED (INCLUDING, WITHOUT LIMITATION, WARRANTY OF INCOME POTENTIAL, OPERATING
EXPENSES, USES, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE),
AND SELLER DISC LAIMS AND RENOUNCES ANY SUCH REPRESENTATION OR WARRANTY.
4.03 Release. Effective from and after the Closing, Buyer hereby waives, HOA.105883420.1 4
releases, acquits, and forever discharges Seller, and Seller's agents, directors, officers, and employees to the maximum extent permitted by law, of and from any and all claims, actions, causes of action, demands, rights, liabilities, damages, losses, costs, expenses, or compensation whatsoever, direct or indirect, known or unknown, foreseen or unforeseen, that it now has or that may arise in the future because of or in any way growing out of or connected with this Agreement and the Property (including without limitation the condition of the Property), except matters arising from (i) Seller's fraud or intentional misrepresentation, (ii) any breach of Seller's representations and warranties set forth in Section 7.01, or (iii) any obligation of Seller under this Agreement that expressly survives the Closing. Buyer expressly waives its rights granted under the provisions of any law that provides that a general release does not extend to claims that buyer does not know or suspect to exist in its favor at the time of executing the release, which if known by it must have materially affected its agreement to release seller including, without limitation, California Civil Code § 1542, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR
HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM
OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEME NT WITH THE DEBTOR OR RELEASED PARTY.
Seller and Buyer have each initialed this section 4.03 to further indicate their awareness and acceptance of each and every provision of this Agreement. The provisions of this section 4.03 will survive the Closing.
Buyer's Initials: ____ Seller's Initials: ____
5. Examination of Property; Due Diligence Period. Upon making prior arrangements with the Seller, Buyer, its agents or employees may enter upon the Property for the purposes of inspecting the Property, conducting environmental, soil, engineering, structural and other tests as Buyer may deem necessary. B uyer shall restore the affected portion of the Property to its condition prior to the performance of such studies or inspections. Buyer agrees to indemnify, defend and hold the Seller harmless for, from and against any liability and/or damages caused by Buyer in exercising the foregoing license (unless arising from Seller's gross negligence or willful misconduct or from the mere discovery of any pre- existing condition of the Property), including, but not limited to any and all costs, expenses and attorneys' fees, through all mediation, arbitration, trial and appellate proceedings, and agrees that this obligation to indemnify shall survive any termination of this Agreement and the Closing. All expenses incurred in connection with the exercise of such license by Buyer shall be the responsibility of Buyer. Buyer shall have until the date that is __________ (__) days after the Effective Date (the Due Diligence Period) to complete its inspections and investigations of the Property. If Buyer, in its sole and absolute discretion, disapproves of the condition of the Property, Buyer may terminate this Agreement by written notice to Seller delivered on or before the expiration of the Due Diligence Period, in which case neither Party shall have any further rights or obli gations hereunder except those that expressly survive termination. If Buyer does not timely deliver such termination notice, Buyer shall be deemed to have approved the condition of the Property, other than the condition of title, which shall be governed exclusively by Section 6.
6. Conditions Precedent to Closing; Title Matters . The following provisions of this Section 6 shall govern the condition of title to the Property and certain conditions precedent to the Closing.
HOA.105883420.1 5
6.01 Preliminary Title Report . Within ten (10) days after the Effective Date, Buyer shall order from a title company selected by Buyer (the "Title Company") a preliminary title report for the Property, together with legible copies of all documents underlying the exceptions identified therein (collectively, the "Preliminary Report"). The cost of the Preliminary Report shall be borne by Buyer.
6.02 Buyer's Review; Right to Disapprove. Buyer shall have thirty (30) days after its receipt of the complete Preliminary Report (the " Title Review Period") to deliver to Seller written notice disapproving any exception to title shown therein (a "Title Objection Notice"). Any exception to title not disapproved by a timely Title Objection Notice shall be deemed approved by Buyer. The mineral reservation described in Section 1, the standard printed exceptions in the Preliminary Report, and all exceptions approved or deemed approved by Buyer pursuant to this Section 6.02 are referred to collectively as the "Permitted Exceptions"; provided, however, that no deed of trust, mortgage, judgment lien, mechanic's lien, delinquent tax or assessment lien, or other monetary lien or monetary encumbrance (collectively, "Monetary Liens") shall constitute a Permitted Exception, whether or not disapproved in a Title Objection Notice, and Seller shall cause all Monetary Liens to be removed of record at or before the Closing.
6.03 Seller's Right to Cure . Within ten (10) business days after its receipt of a Title Objection Notice, Seller shall notify Buyer in writing whether Seller elects to remove or otherwise cure each disapproved exception at or before the Closing. Seller's failure to timely deliver such notice shall be deemed Seller's election not to cure. If Seller elects (or is deemed to have elected) not to cure any disapproved exception, or if Seller elects to cure any disapproved exception but fails to complete such cure at or before the Closing, Buyer may, by written notice to Seller, either (a) waive its disapproval, in which case such exception shall be deemed a Permitted Exception, or (b) terminate this Agreement, in which case the Independent Consideration Amount shall be refunded to Buyer and neither Party shall have any further rights or obligations hereunder except those that expressly survive termination.
6.04 Title Policy . It shall be a condition precedent to Buyer's obligation to consummate the Closing and to pay the Purchase Price that, at the Closing, the Title Company is irrevocably and unconditionally committed to issue to Buyer, upon recordation of the Deed, a CLTA standard coverage owner's policy of title insurance (or, at Buyer's election and additional cost, an ALTA extended coverage owner's policy of title insurance) in the amount of the Purchase Price, insuring fee title to the Property vested in Buyer, subject only to the Permitted Exceptions (the "Title Policy"). The premium for the Title Policy shall be borne by Buyer as provided in Section 2. Seller shall execute and deliver such customary affidavits, authority documents, and other instruments, and shall provide such reasonable cooperation, as the Title Company may require in order to issue the Title Policy.
6.05 Conditions Precedent. In addition to the conditions set forth in Sections 9 and 10 of this Agreement, the obligations of Buyer under this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions (together with the conditions set forth in Sections 9 and 10, the " Conditions Precedent"): (a) Seller holds fee title to the Property, free and clear of all liens and encumbrances other than the Permitted Exceptions; and (b) the Title Company is irrevocably and unconditionally committed to issue the Title Policy as provided in Section 6.04. If the Conditions Precedent set forth in this Section 6.05 are not satisfied or waived by Buyer in writing at or prior to the Closing, this Agreement shall immediately terminate unless otherwise agreed to in writing by both Parties. Seller agrees to provide reasonable cooperation to Buyer in order to satisfy the Conditions Precedent.
HOA.105883420.1 6
7. Representations and Warranties.
7.01 Seller's Representations and Warranties . Seller represents and warrants to Buyer, as of the Effective Date and again as of the Closing, as follows:
(a) Seller is the sole owner of the entire right, title and interest in and to the Property.
(b) Seller is a body corporate and politic.
(c) Seller has the full power and authority to enter into and comply with the terms of this Agreement and has, or at Closing will have, obtained all necessary consents and approvals required for Seller to enter into and consummate the transaction described in this Agreement. The individual(s) signing this Agree ment on behalf of Seller is or are authorized to execute this Agreement and bind Seller to its terms and conditions.
(d) This Agreement, and all instruments referenced herein to be executed by Seller in connection with the transaction described in this Agreement, are or at the time of Closing will be, duly authorized, executed and delivered by Seller, and are, or at Closing will be, legal, valid and binding obligations of Seller and do not, and at the time of Closing will not, violate any provisions of any agreement or judicial order to which Seller is a party or to which Seller is subject.
(e) The execution and delivery of this Agreement, and consummation of the transaction described in this Agreement do not, and at Closing will not constitute a default under any contract or agreement to which Seller is a party.
(f) The acts of Seller's Board of Supervisors, directors, members, managers, officers, employees, agents, attorneys, affiliates, lenders, consultants and contractors who sign this Agreement, and all instruments referenced herein to be executed by Seller in connection with the transaction described in this Agreement, or perform any obligation of Seller hereunder or thereunder, and the transactions contemplated hereby and thereby, have been duly authorized by all requisite action on the part of Seller.
(g) Seller has obtained, or will obtain before Closing, all required consents, releases, and permissions, and has complied with or will comply with all material statutes, laws, ordinances, and regulations of any kind or nature, in order to effectively vest in Buyer good and indefeasible title to the Property.
(h) There are no pending or, to Seller's actual knowledge, threatened legal actions or arbitrations or reference proceedings at law or in equity, against Seller or affecting the Property.
(i) To Seller's actual knowledge, all laws, ordinances, rules, and regulations (including, but not limited to, those relating to flood control, zoning, building, fire, health, and safety) of any government or any agency, body, or subdivision thereof, bearing on the construction, operation, ownership, or use of the Property, have been complied with by Seller and, except as disclosed in the Property documents, Seller has not received any written notice from any governmental authority that the Property or any condition existing thereon or any present use thereof currently violates any law or regulations applicable to the Property, including, without limitation, environmental statutes, ordinances or regulations governing hazardous substances, HOA.105883420.1 7
and to Seller's actual knowledge, no such violations exist.
(j) Seller has not received any notice that Seller is in default of its obligations under any declarations, reciprocal easement agreements and other similar cross - easements, use agreements, covenants or similar agreements with adjacent property owners governing the use, maintenance or operation of any part of the Property.
(k) Seller has not received written notice from any governmental authority of any pending condemnation action against any of the Property.
(l) To Seller's actual knowledge, there are no Hazardous Substances present at, on, in, under or about the Property (including, without limitation, the air, land, soil, surface water, and ground water); there has not been any generation, transportation, storage, treatment, or disposal of any Hazardous Substance at, the Property, or within one -half mile thereof, or any migration of Hazardous Substances to or from the Property, now or in the past; there is no pending or threatened litigation in which any person or entity alleges, or threatens to allege, the presence, release, threat of release, placement at, on, in, under or about, or migration from or to, the Property, or the generation, transportation, storage, treatment, or disposal on the Property, of any Haz ardous Substance; Seller has not received any notice of and, to Seller's actual knowledge, no governmental authority or any employee or agent thereof has determined or alleged, or is investigating the possibility, that there is the presence, release, threat of release, placement at, on, in, under or about, the Property, or the generation, transportation, storage, treatment, or disposal on the Property, of any Hazardous Substance; to Seller's actual knowledge, there are no communications or agreements with any governmental authority or agency (federal, state, or local) or any private person or entity (including, without limitation, any prior owner of the Property or any present or former occupant of the Property) relating in any way to the presence, release, threat of release, placement at, on, in, under or about, or migration from or to, the Property, or the generation, transportation, storage, treatment, or disposal at, on, in, under or about, the Property, of any Hazardous Substance.
Environmental Law means any present and future federal, state and local laws, statutes, ordinances, rules, regulations and the like, as well as common law, relating to the safety, welfare and protection of human health or the environment or any natural resource, relating to any Hazardous Substances, relating to liability for or costs of other actual or threatened danger to the safety, welfare or human health or the environment or any natural resource and includes, but is not limited to, the following statutes, as amended, any successor thereto, and any regulations adopted and publications promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (as amended, including, but not limited to, the Superfund Amendments and Reauthorization Act of 1986, CERCLA), 42 U.S.C. §9601 et seq; the Emergency Planning and Community Right-to-Know Act of 1986; the Hazardous Materials Transportation Act, as amended, 49 U.S.C. §1801 et seq; the Resource Conservation and Recovery Act, as amended (including, but not limited to, Subtitle I relating to underground storage tanks), 42 U.S.C. §6901 et seq; the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act of 1970, 29 U.S.C. Section 651 et seq.; the California Hazardous Waste Control Law, California Health and Safety Code Section 25100 et seq.; the Hazardous Substance Account Act, California Health & Safety Code Section 25300 et seq.; the Safe Drinking Water and Toxic Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et seq.; the Porter -Cologne Water Quality Control Act, California Water Code Section 13000 et seq.; the California Air Resources Law, California Health and Safety Code HOA.105883420.1 8
Section 39000 et seq.; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; and the River and Harbors Appropriation Act. The term Environmental Law also includes, but is not limited to, any present and future federal, state and local laws, statutes ordinances, rules, regulations and the like, as well as common law conditioning transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental condition of the Property; requiring notification or disclosure of Releases of Hazardous Substances or other environmental condition of the Property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property; imposing conditions or requirements in connection with permits or other authorization for lawful activity; relating to nuisance, trespass or other causes of action related to the Property; an d relating to wrongful death, personal injury, or property or other damage in connection with any physical condition or use of the Property.
Hazardous Substances shall mean all chemicals materials, substances, or items in any form, whether solid, liquid, gaseous, semisolid, or any combination thereof, whether waste materials, raw materials, chemicals, finished products, by -products, or any other materials or articles, that because of the physical, chemical, or other characteristics may pose a risk of endangering human health or safety or of degrading the environment and are regulated under any Environmental Law, including not limited to: petrol eum and petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead, lead based paint, radon, radioactive materials, mold, flammables and explosives, infectious substances or any other substances or materials now or hereafter regulated by any Environmental Law.
As used herein, the term Seller's actual knowledge means the current, actual and personal knowledge of (and only of) Michael G. Rodriguez, and does not include knowledge imputed to Seller from any other person or entity. The named individual is acting for and on behalf of Seller and in a capacity as an officer or employee of Seller or one or more of Seller's affiliates and is in no manner expressly or impliedly making any representations or warranties in an individual capacity. Buyer waives any right to s ue or to seek any personal judgment or claim against the named individual.
The representations and warranties of Seller set forth in this Section 7.01 shall survive the Closing for a period of two (2) years and shall not merge into the Deed upon its recordation or upon delivery of possession of the Property.
7.02 Buyer's Representations and Warranties . Buyer warrants and represents to Seller, as of the Effective Date and again as of the Closing, as follows:
(a) Buyer is a duly formed and validly existing California municipal corporation and charter city under the laws of the State of California.
(b) Buyer has the full power and authority to enter into and comply with the terms of this Agreement and has, or at Closing will have, obtained all necessary consents and approvals required for Buyer to enter into and consummate the transaction described in t his Agreement.
(c) This Agreement, and all instruments referenced herein to be executed by Buyer in connection with the transaction described in this Agreement, are, or at the time of Closing will be, duly authorized, executed and delivered by Buyer, and are, or at Closing will be, legal, valid and binding obligations of Buyer and do not, and at the time of Closing will not, HOA.105883420.1 9
violate any provisions of any agreement or judicial order to which Buyer is a party or to which Buyer is subject. Buyer’s execution and delivery of this Agreement, and Buyer’s performance of its obligations hereunder, have been duly authorized by the City Council of the City of Lancaster by all requisite action, and no further action on the part of Buyer or its governing body is necessary to authorize this Agreement.
(d) The execution and delivery of this Agreement, and consummation of the transaction described in this Agreement, will not, to Buyer's actual knowledge, constitute a default under any contract or agreement to which Buyer is a party.
(e) Neither Buyer nor its partners, members, officers, directors, investors, or shareholders, nor any of their respective affiliates, is in violation of any federal or state anti-money laundering and anti-terrorism laws.
(f) Neither Buyer nor its partners, members, officers, directors, investors, or shareholders, nor any of their respective affiliates, is acting, directly or indirectly, on behalf of terrorists, terrorist organizations, or narcotics traffickers, including thos e persons or entities designated as a Specially Designated National pursuant to Executive Order 13224 of the President of the United States, dated September 23, 2001 ( Executive Order), as amended, or that appear on the Annex to the Executive Order, or are included on any relevant lists maintained by the Office of Foreign Assets Control of U.S. Department of Treasury, U.S. Department of State, or other U.S. government agencies, all as may be amended from time to time (Government List).
Neither Buyer nor its partners, members, officers, directors, investors, or shareholders, nor any of their respective affiliates, in any capacity in connection with the purchase of Property (a) conducts any business or engages in making or receiving any contribution of funds, goods, or services to or for the benefit of any person included in a Government List, (b) deals in, or otherwise engages in any transaction relating to, the Property or interests in property blocked pursuant to the Executive Order, or (c) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any anti-money-laundering and anti-terrorism laws.
(g) Neither Buyer, nor any person controlling or controlled by Buyer, is a country, territory, individual, or entity named on a Government List, and, to Buyer’s actual knowledge, the monies used in connection with this Agreement and amounts committed with respect to this Agreement were not and are not derived from any activities that contravene any applicable anti -money-laundering or anti -bribery laws and regulations (including funds being derived from any person, entity, country, or territory on a Government List or engaged in any unlawful activity defined under 18 USC §1956(c)(7)).
As used herein, the term Buyer's actual knowledge means the current, actual and personal knowledge of (and only of) Trolis Niebla, City Manager of Buyer, and does not include knowledge imputed to Buyer from any other person or entity. The named individual is acting for and on behalf of Buyer and in a capacity as an employee of Buyer and is in no manner expressly or impliedly making any representations or warranties in an individual capacity. Seller waives any right to sue or to seek any personal judgment or claim against the named individual.
Except for the representations and warranties of Buyer set forth in Sections
7.02(a), 7.02(b) and 7.02(c), which shall survive indefinitely, the representations and warranties of Buyer set forth in this Section 7.02 shall survive the Closing for a period of two (2) years.
8. Remedies.
HOA.105883420.1 10
8.01 Seller's Remedies . In the event Buyer fails to perform its obligations pursuant to this Agreement prior to the Closing for any reason except due to the Seller's default or failure to perform its obligations hereunder, the Seller shall be entitled as its sole remedy to terminate this Agreement. If the Closing occurs and Buyer fails to pay the Purchase Price when due under Sections 3.02 and 11.01(c), Seller shall be entitled to bring an action against Buyer for the unpaid Purchase Price, together with interest thereon at the legal rate from the date due until paid, and Buyer's obligation to pay the Purchase Price shall survive the Closing and the recordation of the Deed. Seller acknowledges and agrees that, the Parties having elected to proceed without an escrow, the sequence of deliveries and payment set forth in Section 11.01(c) shall apply, and Seller accepts the risks associated with the absence of an escrow. Nothing in this Section shall limit the Seller's right to recover attorneys' fees under Section 8.03 below.
8.02 Buyer's Remedies. If the Seller (1) fails to perform any of its obligations under this Agreement prior to the Closing for any reason other than the default of Buyer or the termination of this Agreement (and such failure continues for a period of ten (10) days following written notice to the Seller), or (2) breaches a representation and warranty, then the Seller shall be in default under this Agreement and, as Buyer's sole and exclusive remedy, Buyer may elect to: (i) waive the default and proceed to close this transaction; or (ii) pursue specific performance of this Agreement; or (iii) terminate this Agreement and receive a refund of the Independent Consideration Amount and any other amounts theretofore paid by Buyer to Seller under this Agreement; provided, however, if specific performance is unavailable because of the affirmative or intentional acts or omissions of the Seller, Buyer may bring suit for damages as a result of the Seller's default hereunder. As a condition precedent to Buyer's right to pu rsue specific performance under section (ii) above, Buyer shall (a) not be in default under this Agreement; and (b) file suit therefor in the Superior Court of Los Angeles County, California on or before 5:00 p.m.
Pacific Time on or before the date that is sixty (60) business days immediately following the scheduled Closing date. Nothing in this Section shall limit Buyer's right to recover attorneys' fees under Section 8.03 below.
8.03 Attorneys' Fees. In the event either party hereto is required to employ an attorney because of the other party's default, then the defaulting party shall pay the non-defaulting party's reasonable attorneys' fees incurred in the enforcement of this Agreement.
8.04 Waiver. Seller and Buyer waive the right to pursue any punitive, speculative, consequential, or special damages against the other.
9. Conditions Precedent to the Seller's Obligations . The obligations of the Seller under this Agreement are subject to the satisfaction, on or prior to the Closing, of the following conditions, all or any of which may be waived in writing by the Seller:
(a) All representations and warranties made by Buyer in this Agreement and in any written statements delivered to the Seller by Buyer under this Agreement shall be true and correct as of the Closing.
(b) Buyer shall have performed and complied with all obligations of Buyer required by this Agreement to be performed or complied with by Buyer on or prior to the Closing.
(c) All documents required to be delivered by Buyer on or prior to the Closing shall have been properly executed by Buyer and delivered to the Seller in form and substance reasonably satisfactory to Seller.
HOA.105883420.1 11
10. Conditions Precedent to Buyer's Obligations. The obligations of Buyer under this Agreement are subject to the satisfaction, on or prior to the Closing, of the following conditions, all or any of which may be waived in writing by Buyer:
(a) All representations and warranties made by the Seller in this Agreement and in any written statement delivered to Buyer by the Seller under this Agreement shall be true and correct as of the Closing.
(b) The Seller shall have performed and complied with all its respective obligations required by this Agreement to be performed or complied with by it on or prior to the Closing.
(c) All documents required to be delivered by the Seller on or prior to the Closing shall have been properly executed by the Seller and delivered to Buyer in form and substance reasonably satisfactory to Buyer.
(d) The Title Company shall be irrevocably and unconditionally committed to issue the Title Policy as provided in Section 6.04, subject only to the Permitted Exceptions, and Buyer shall not have terminated this Agreement pursuant to Section 5 or Section 6.
11. Closing.
11.01 Closing Matters.
(a) At Closing, the Seller shall execute, deliver and acknowledge the following documents:
(i) A grant deed (Deed) conveying the Property;
(ii) Such customary affidavits, authority documents, and other instruments as the Title Company may reasonably require in order to issue the Title Policy; and
(iii) Such other documents as are reasonably necessary to close and consummate the purchase and sale transaction contemplated by this Agreement and as may be required by the Buyer.
(b) At Closing, Buyer shall execute, acknowledge and/or deliver, as applicable, the following items to Seller:
(i) The Purchase Price, at the time and in the manner provided in Section 11.01(c) below;
(ii) Such evidence of Buyer's authority and other documents reasonably required;
(iii) A Certificate of Acceptance executed by Buyer pursuant to California Government Code Section 27281.
(iv) Execute and deliver such other documents as are reasonably necessary to close and consummate the purchase and sale transaction contemplated by this HOA.105883420.1 12
Agreement and as may be required by Seller.
(c) The Closing shall proceed without an escrow, in the following sequence:
(i) at the Closing, Seller shall execute, acknowledge, and deliver the Deed and the other documents described in this Section 11.01, and Seller shall cause the Deed, together with Buyer's Certificate of Acceptance, to be recorded in the official records of the Los Angeles County Registrar-Recorder/County Clerk; (ii) upon recordation of the Deed, the Title Company shall issue the Title Policy to Buyer; and (iii) Buyer shall pay the Purchase Price (less a credit for the Independent Consideration Amount previously paid) to Seller within __________ (__) business days after the later of (A) the date the Deed is recorded and (B) the date the Title Policy is issued to Buyer. Seller acknowledges that delivery and recordation of the Deed will precede payment of the Pur chase Price, and Seller accepts the risks associated with closing this transaction without an escrow. Buyer's obligation to pay the Purchase Price in accordance with this Section
11.01(c) shall survive the Closing and the recordation of the Deed. (d) Possession of the Property shall be delivered to Buyer at Closing.
11.02 Taxes. At Closing, all taxes (real and personal), fees and assessments, if applicable, shall be prorated as of the date of the Closing in accordance with the prorations customarily used for commercial properties in the area of the Property.
11.03 Closing Costs. The Seller shall be responsible for recording the Deed. The Parties acknowledge that recordation of the Deed is exempt from recording fees pursuant to California Government Code Sections 6103 and 27383, and that the conveyance contemplated by this Agreement is exempt from documentary transfer tax pursuant to California Revenue and Taxation Code Section 11922. Except as otherwise provided in Section 8.03, each party shall be responsible for the payment of its own attorneys' fees incurred in connection with the transaction, which is the subject of this Agreement.
11.04 Commissions. Neither Seller nor Buyer have retained or engaged a real estate broker, commission agent or any other person who is or may be entitled to payment of a commission or finder's fee or other compensation in connection with the transaction contemplated by this Agreement. Seller and Buyer shall indemnify, hold harmless and defend the other, its successors and assigns for, from and against any and all claims, demands, actions, costs and expenses, including reasonable attorney and accounting fees and court costs arising out of any claim by any real estate broker or other person claiming through the indemnifying party that such person is entitled to any commission or fee in connection with this transaction.
The provisions of this Section 11.04 shall survive the Closing.
12. Condemnation and Risk of Loss.
12.01 Condemnation. If, prior to Closing, any governmental authority, other than Buyer, or other entity having condemnation authority shall institute an eminent domain proceeding or take any steps preliminary thereto (including the giving of any direct or indirect notice of intent to institute such proceedings) with regard to the Property, and the same is not dismissed on or before ten (10) days prior to Closing, Buyer shall be entitled either to terminate this Agreement upon written notice to Seller or to waive such right of termination and receive all such condemnation proceeds. In the event Buyer elects to terminate this Agreement under this Section 12.01, neither party to this Agreement shall thereafter have any further rights or obligations hereunder e xcept for those rights and obligations that survive termination of this Agreement or the Closing as provided in this Agreement.
HOA.105883420.1 13
12.02 Risk of Loss. The risk of loss or damage to the Property and all liability to third persons until the Closing shall be borne by the Seller. Buyer shall assume all risks of loss or damage to the Property and all liability to third persons upon the Closing.
13. Miscellaneous.
13.01 Notices. Any and all notices, demands or requests required or permitted hereunder shall be in writing and shall be effective upon personal delivery or facsimile transmission (facsimile transmission must include verification of transmission) or one (1) business day after being deposited with any commercial air courier or express service providing next day delivery, addressed as follows:
To the Seller:
County of Los Angeles
Chief Executive Office
Real Estate Division
555 W. 5th Street, 36th Floor
Los Angeles, CA 90013
Attn: Joyce Chang
With a copy to:
County of Los Angeles
Office of the County Counsel
648 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012-2713
Attn: Real Property Division
To Buyer:
City of Lancaster
City Hall
44933 Fern Avenue
Lancaster, CA 93534
Attn: City Manager
With a copy to:
Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
Attn: Allison Burns
Buyer or Seller may change its address for notice by giving notice in the manner provided above. The inability to deliver because of a changed address of which no notice was given, or rejection or other refusal to accept any notice, shall be deemed to be t he receipt of the notice as of the date of such inability to deliver or rejection or refusal to accept. Any telephone numbers or e-mail addresses provided in this Agreement are for aiding informal communications HOA.105883420.1 14
only, and notices shall not be effective if provided orally or if sent only by e-mail.
13.02 Time of the Essence; Date of Performance. Time is of the essence of this Agreement, and Buyer and the Seller hereby agree to perform each and every obligation hereunder in a prompt and timely manner; provided, however, that if the date for the performance of any action or the giving of any notic e which is required hereunder, occurs on a Saturday, Sunday or legal holiday, the date for performance or giving of notice shall be the next succeeding business day.
13.03 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be valid under applicable law, but if any provision of this Agreement shall be invalid or prohibited hereunder, such provision shall be ineffective to the extent of such prohibition or invalidation which shall not invalidate the remainder of such provision or the remaining provisions of this Agreement.
13.04 Waiver. The waiver by either party hereto of any right granted to it hereunder shall not be deemed to be a waiver of any other right granted herein, nor shall same be deemed to be a waiver of a subsequent right obtained by reason of the continuation of any matter previously waived.
13.05 Entire Agreement. This Agreement, contains the entire agreement of the parties hereto with respect to the matters covered hereby, supersedes all prior agreements, arrangements and understandings between the parties and no other agreement, statement or promise made by either party hereto that is not contained herein shall be binding or valid. All exhibits to this Agreement are by this reference incorporated herein.
13.06 Amendments. This Agreement may be amended only by written document signed by each of the parties hereto.
13.07 Further Performance. Each party shall, whenever and as often as it shall be requested by the other party, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such further instruments and documents, as may be reasonably necessary in order to complete the sale, conveyance and transfer herein provided and to do any and all things as may be requested in order to carry out the intent and purpose of this Agreement.
13.08 Counterparts. This Agreement may be executed simultaneously or in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. A party's signature on this Agreement or any amendment hereto may be provided by facsimile or electronically scanned and shall be effective upon transmission to the other party hereto.
13.09 Binding Effect . This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
13.10 Governing Law; Venue. This Agreement shall be construed and interpreted under, and governed and enforced according to the laws of the State of California, without giving effect to the principles of conflicts of law. The parties agree that should any court action be commenced relating to this Agreement, that the Los Angeles County Superior Court shall be the appropriate and exclusive venue therefore. The parties expressly waive any and all provisions of law providing for a change of venue to any other state or federal court.
HOA.105883420.1 15
13.11 Dispute Resolution. In the event a dispute arises under this Agreement, Buyer and Seller agree that there shall be a thirty (30) day moratorium on litigation during which time the Buyer and the Seller agree to attempt to settle the dispute by non- binding mediation before commencement of litigation. The mediation shall be held under the Commercial Mediation Rules of the American Arbitration Association (AAA) but shall not be under the administration of the AAA unless agreed to by the Buyer and the Seller in writing, in which case all administrative fees shall be divided evenly between the Buyer and the Seller. The matter in dispute shall be submitted to a mediator mutually selected by Buyer and the Seller. If the Parties cannot agree upon the selection of a mediator within ten (10) business days, then within five (5) business days thereafter, the Buyer and the Seller shall request that the Presiding Judge of the Superior Court in and for the County of Los Angeles, State of California, appoint the mediat or. The mediator selected shall have at least ten (10) years of experience in mediating or arbitrating disputes relating to commercial property. The cost of any such mediation shall be divided equally between the Buyer and the Seller. The results of the mediation shall be nonbinding with either Buyer or the Seller free to initiate litigation upon the conclusion of the latter of the mediation or of the thirty (30) day moratorium on litigation.
13.12 Headings and Construction. The headings set forth in this Agreement are inserted only for convenience and are not in any way to be construed as part of this Agreement or a limitation on the scope of the particular paragraph to which it refers. Where the context requires herein, the singular shall be construed as the plural, and neutral pronouns shall be construed as masculine and feminine pronouns, and vice versa. This Agreement shall be constructed according to its fair meaning and neither for nor against either party hereto.
13.13 Assignment. Buyer shall not have the right to assign its rights under this Agreement without the consent of Seller, which may be granted or withheld in Seller's sole and absolute discretion.
[signatures begin on the following page]
HOA.105883420.1 16
IN WITNESS WHEREOF, Buyer and the Seller have executed this Agreement effective as of the date first written above.
BUYER:
CITY OF LANCASTER,
a California municipal corporation and charter city
By:
Trolis Niebla
City Manager
ATTEST:
By:
Andrea Alexander
City Clerk
APPROVED AS TO FORM:
By:
Allison E. Burns
City Attorney
HOA.105883420.1 17
SELLER:
COUNTY OF LOS ANGELES,
a body corporate and politic
JOSEPH M. NICCHITTA
Acting Chief Executive Officer
By:
John T. Cooke
Assistant Chief Executive Officer
ATTEST:
DEAN C. LOGAN
Registrar-Recorder/County Clerk
of the County of Los Angeles
By:
Deputy
APPROVED AS TO FORM:
DAWYN R. HARRISON
County Counsel
By:
Roberto Saldaña
Senior Deputy County Counsel
STAFF REPORT
City of Lancaster
PH 1
6/23/2026
TN
Date: June 23, 2026
To: Mayor Parris and City Council Members
From: Patti Garibay, Community Development Director
Jocelyn Swain, Senior Planner
Subject: Approval of the First Amendment to Development Agreement (DA) No. 18-01 for the Avanti South Specific Plan (SP 15-02) (DA No. 26-002) Recommendation:
1. Introduce Ordinance No. ____, adopting the First Amendment to Development Agreement (DA) No. 18-01 for the Avanti South Specific Plan (SP 15-02) (DA No. 26- 002) to extend the term by seven years for a maximum of 27 years and restate the construction milestones.
Fiscal Impact:
None. The public benefits and concessions established in the original development agreement (DA No. 18-01) remain unchanged.
Background:
On September 11, 2018, the City approved Development Agreement No. 18-01 for the Avanti South Specific Plan. The development agreement became effective on April 23, 2019. As part of the development agreement, the City received public benefits including one-time payments for units constructed and the developer received concessions including reduction in impact fees associated with individual developments. In order for the development agreement to remain in effect, construction milestones were established which the developer was required to meet.
The developer has requested an extension to the development agreement to allow for a total possible term of 27 years from the effective date of April 23, 2019. Additionally, the construction milestones have been restated to align more closely with the new term of the development agreement. Specifically, the developer is required to start construction no later than December 31, 2032, and complete a minimum of 300 units no later than December 31, 2034. If the construction milestones are not met, the development agreement would expire. 2 4
1 1
This is the only extension to the development agreement being granted. If the developer desires to seek additional time, concessions, etc., or if the development agreement expires, they would need to enter into a new development agreement.
JS/vm
Attachments:
A. Development Agreement Ordinance No. ____
B. Development Agreement No. 26-002
C. Development Agreement No. 18-001
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LANCASTER, CALIFORNIA, ADOPTING DEVELOPMENT AGREEMENT NO. 26-002
AMENDING DEVELOPMENT AGREEMENT NO. 18-001 FOR THE AVANTI
SOUTH SPECIFIC PLAN
WHEREAS, in order to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California adopted Government Code Sections 65864 through 65869.5 (the “Development Agreement Statute”), which authorized cities to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property for the purpose of establishing certainty for both the individual City and the property owner in the development process; and
WHEREAS, Development Agreement No. 18-001 was approved by the City Council on September 11, 2018, and became effective on April 23, 2019; and
WHEREAS, said development agreement covers the 307.7 acres known as the Avanti South Specific Plan which allows for the development of up to 1,700 residential units, 213,600 square feet of commercial development, parks, a school and fire station; and WHEREAS, said development agreement established certain rights to facilitate development within the Specific Plan area in exchange for public benefits and concessions; and WHEREAS, both the City of Lancaster and the owner of the subject property referenced in Development Agreement No. 26-002 are desirous of entering into this Agreement to amend Development Agreement No. 18-001 in conformance with the provisions of the Government Code, City of Lancaster Municipal Code (“LMC”), and applicable City rules, regulations, and official policies; and WHEREAS, the term of the Development Agreement would be extended to a maximum of 27 years from the effective date of April 23, 2019, with no further extensions available; and WHEREAS, the construction miles are restated to require construction to begin no later than December 31, 2032, and the completion of a minimum of 300 units no later than December 31, 2034; and WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code §21000 et seq.) and the State CEQA Guidelines (California Code of Regulations, Title 14, §15000 eq seq.) (“CEQA”), an Environmental Impact Report (SCH#2016071067) was prepared for the Avanti South Specific Plan compliance with CEQA and circulated for a 45-day public review ending on December 27, 2017; and WHEREAS, the Final Environmental Impact Report was released on June 8, 2018; and WHEREAS, the Avanti South Specific Plan was approved, the Final Environmental Impact Report certified, and the Mitigation Monitoring and Reporting Program adopted by the City Council on September 11, 2018; and
WHEREAS, it is the intent of both parties that upon execution of Development Agreement No. 26- 002, the property owner shall be obligated to complete the public benefits in the manner and within the Ordinance No.