1 TO: City Council
FROM: Andrew Vialpando, City Manager
PREPARED BY: Susan Kamada, Deputy City Manager/Administrative Services Director
MEETING DATE: June 2, 2026
SUBJECT: Employee Service/Recognition and Commissioner Awards Policy
RECOMMENDED ACTION
Approve proposed amendments to the Employee Service/Recognition and Commissioner Awards Policy.
It is recommended that the City Council:
• Approve Resolution No. 2026-23 amending to the Employee Service/Recognition and Commissioner Awards Policy; and
• Approve Resolution No. 2026-24 amending the Compensation Plan for Executive Management Employees.
BACKGROUND
The Employee Service/Recognition and Commissioner Awards Policy was established by Resolution of the City Council in 1984 to recognize employees and Commissioners for their years of dedicated service to the organization. The current policy is outdated and provides recognition at designated service milestones through commemorative awards and/or monetary incentives.
Staff has identified several areas where the policy could be improved to better align with current workforce expectations, organizational values, and budget practices. Specifically, the existing policy:
• Does not reflect current employee recognition best practices; • Contains inconsistent award amounts and milestone intervals; • Provides limited flexibility in award selection;
• Requires administrative updates to improve efficiency and consistency.
CITY OF LOMITA
CITY COUNCIL REPORT
Item No. 7i
2 Human Resources conducted a review of comparable agency practices and evaluated internal employee feedback regarding recognition programs. Based on this review, staff is recommending amendments to the policy.
DISCUSSION
The proposed enhancements include the following:
• Updated Service Milestones
• Revise employee recognition milestones to occur every 5-year anniversary. • Enhanced Award Options
o Allow employees to select from a catalog of commemorative items, gift cards, or equivalent recognition options within approved budget limits. • Standardized Award Values
o Establish consistent award values tied to years of service to ensure equity and simplify administration.
• Recognition Procedures
o Authorize Human Resources to administer the program annually and update administrative procedures as needed.
• Modernize Language
o Revise policy language for clarity, consistency, and alignment with current organizational policies and practices.
The proposed policy amendments are intended to improve employee morale and engagement; enhance recruitment and retention efforts; recognize long-term employee contributions in a meaningful manner; ensure fair and consistent administration of service awards; and align the organization’s recognition practices with modern workforce expectations.
The proposed amendments are administrative in nature and do not alter employee compensation, benefits eligibility, or employment status. The amendments support the organization’s strategic goals related to workforce development and employee engagement.
Compensation Plan for Executive Management Employees
The proposed City Manager Bonus Award program is designed to strengthen accountability, organizational performance, and strategic execution among the City’s executive leadership team. The program links incentive compensation to measurable achievements, including City Council priorities, fiscal stewardship, operational efficiency, workforce development, and successful implementation of major initiatives.
Awards are discretionary, performance-based, and subject to budget availability approved by the City Council through Annual Budget Adoption process. The program is intended to help the City attract and retain high-performing executive leaders while 3 reinforcing a culture of results-oriented public service and transparent performance management.
OPTIONS:
1. Approve staff’s recommendation.
2. Give staff alternative direction.
FISCAL IMPACT
The proposed amendments are expected to have a minimal fiscal impact and can be accommodated within the existing Human Resources operating budget. Standardizing award values and consolidating purchasing procedures may also improve administrative efficiency and cost predictability. The amount appropriated for the City Manager Bonus Award shall not exceed $10,000 annually and is included in the Proposed Budget.
ATTACHMENTS
1) Resolution 2026-23 to amend the Employee Service/Recognition and Commissioner Awards Policy
2) Resolution 2026-24 to amend the Compensation Plan for Executive Management Employees
Approved by:
_________________________
Andrew Vialpando
City Manager
Prepared by:
__________________________
Susan Kamada
Deputy City Manager/Administrative Services Director