Pittsburg City Council
July 21, 2025

CITY OF PITTSBURG INVESTMENT POLICY
(July 21, 2025)
I. Statement of Purpose and Adoption of Policy
It shall be the investment policy of the City of Pittsburg (the “City”) that all funds not required for immediate expenditures are invested in compliance with this statement, as well as applicable federal, state and local legislation governing the investment of public funds. Funds shall be invested in a manner that will provide the highest investment return with the appropriate level of security, while meeting the daily cash flow demands of the City.

Safeguards will be set into place to ensure that adequate operating reserves are established and maintained to provide that cash in enough amounts will be available to pay for immediate expenditures as authorized by the City’s budget.

Funds so maintained will be deposited in a manner best serving the City.

The City has a responsibility to monitor the security of its assets and always maintain a level of quality so that the public at large will have the highest confidence that its best interests are being served.

The purpose of this document is to identify various policies and procedures that enhance opportunities for a systemic investment process. The initial step toward a prudent investment policy is to organize and formalize investment related activities.

Related activities, which comprise good cash management, include accurate cash projection, the expeditious collection of revenue, the control of disbursements, cost effective banking relations and a short-term borrowing program, which coordinates working capital requirements and investment opportunities.

The City’s Investment Policy shall be adopted by resolution of City Council. The policy shall be reviewed at least annually by the City Treasurer, City Manager and the Finance Director, and any modification must be approved by City Council.

II. SCOPE
It is intended that this policy covers all operating funds and investment activities under the direct authority of the City. These funds are described in the City’s Annual Comprehensive Financial Report and include its General Fund, Special Revenue Funds, Enterprise Funds, Trust and Agency Funds, Capital Project Funds and Successor Agency Trust Funds.

The Investment Policy applies to all transactions involving the financial assets and related activities of the foregoing funds. Except for cash held in separate restricted funds, the City will pool cash balances from all funds for investments to maximize earnings and efficiencies concerning investment pricing, safekeeping and administration. Investment income will be allocated to the City’s funds based upon 282

their respective average monthly balances and in accordance with Generally Accepted Accounting Principles (GAAP).

The employee’s retirement and deferred compensation funds are not included.

Bond proceeds are not covered under this policy and shall be governed by their applicable bond documents. However, if the bond documents are silent in regard to the investment of bond proceeds and reserves, the terms set forth in this policy shall govern the respective investment of bond proceeds.

III. OBJECTIVES AND PERFORMANCE STANDARDS
The overall program shall be designed and managed with a degree of professionalism worthy of the public trust. The City’s primary investment objectives, in priority order, shall be:

1. Safety: Safety of principal is the foremost objective the City’s investment program, followed by liquidity and yield. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the City’s portfolio. To obtain this objective, the City will diversify its investment by investing funds among a variety of securities offering independent returns and financial institutions. Each investment transaction shall seek to first ensure that capital losses are avoided, whether they are from securities default or erosion of market value. Investment decisions should not incur unreasonable investment risks in order to obtain current investment income.

2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements, which might be reasonably anticipated. This need for investment liquidity may be tempered to the extent that the City is able to issue short-term notes to meet its operating requirements. Emphasis will be on marketable securities with low sensitivity to market risk. Maturities of investments for which there is limited opportunity for resale shall be staggered to maximize liquidity.

3. Yield: The City maintains an active investment strategy and its investment portfolio shall be designed to attain a rate of return which approximates benchmarks to be selected by the City’s investment advisory committee throughout budgetary and economic cycles, taking into account the City’s investment risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restricts the investment of funds.

IV. DELEGATION OF AUTHORITY
Pursuant to California Government Code 53607 and the City’s Municipal Code, the City Council’s management responsibility for the investment program is hereby delegated for a one-year period to the Finance Director who shall be responsible for the investment of idle funds consistent with this investment policy. Subject to review, the City Council may renew the delegation of authority pursuant to this section each year. The Finance Director may delegate these duties to his/her designee upon approval of the City Council. The day-to-day investment decision- 283

making and execution authority may also be delegated to an investment advisor under the supervision of the Finance Director. The investment advisor shall follow this Policy and such other written instructions as are provided.

V. PRUDENCE AND RISK TOLERANCE
The City recognizes that investment risks of the following can result from issuer defaults, market price changes or various technical complications leading to temporary liquidity:

1. Credit risk is the possibility that deterioration of an issuer’s creditworthiness will adversely affect the value of its bonds or that an issuer will not make timely payments of interest or principal on its bonds (default). A decline in a bond issuer’s credit rating, or creditworthiness, may cause prices for its outstanding bonds to decline. This shall be mitigated by limiting investments to those allowed under this policy and by diversification.

2. Market or Interest Rate risk, defined as market value fluctuations due to overall changes in market price, shall be mitigated by eliminating the need to sell securities prior to maturity and investing operating funds needed for short-term liquidity primarily in short-term securities, money market funds or similar investment pools, thereby limiting the average maturity of the portfolio.

Investment shall be made with that degree of judgment and care, under circumstances then prevailing, which persons or prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the safety of their capital as well as the income to be derived.

The standard of prudence to be used by investment officers shall be the “prudent investor standard” and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the City’s investment policy and exercising due diligence shall be relieved of personal liability for an individual security credit risk or market price changes, if deviations from expectations are reported on a timely fashion, and appropriate action is taken to control adverse developments.

VI. INTERNAL CONTROLS
A system of internal controls will be maintained to assure compliance with Federal and State regulations, City Council direction, and prudent cash management procedures.

The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets or imprudent actions by employees and officers of the City.

Controls deemed most important include: control of collusion, segregation of duties, separating transaction authority from accounting and recordkeeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of 284

transactions and strategies, and code of ethical standards. In addition, whenever possible, pre-formatted wire transfers will be used to transfer funds to pre- authorized accounts.

1. The City Treasurer shall audit and examine all investments made by the City, or its duly authorized personnel, at those times deemed necessary by him/her and shall in his/her discretion report his/her audit and examination to the City Council.

2. Investment Oversight Committee: Quarterly review of procedures and adherence to this Investment Policy is conducted by the Investment Oversight Committee. The Committee, established by the City Council, is comprised of the City Manager, Finance Director, and City Treasurer.

3. Annual Audit: The City’s portfolio is included in the annual review of the City’s financial management performed by an outside audit firm.

VII. ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall not participate in personal business activity that could conflict with proper execution of the investment program or which could impair the ability to make impartial investment decisions.

Such employees and investment officials shall disclose any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.

VIII. ELIGIBLE INVESTMENTS
California Government Code Sections 53600 et. seq. provides basic investment limits and guidelines for government entities. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investment to the investments listed below. In the event an apparent discrepancy is found between this policy and the Government Code, the more restrictive parameters will take precedence.

Rating requirements and percentage limitations, where indicated, apply at the time of purchase. In the event a security held by the City is subject to a rating change that brings it below the minimum specified rating requirement, the Finance Director shall notify the City Council of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further rate drops, and the market price of the security.

Eligible Investments

1. Securities of the U.S. Government:

United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the 285

payment of principal and interest. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category.

2. Securities of U.S. Government Agencies
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government- sponsored enterprises. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category, provided that no more than 30% of the portfolio may be invested in any single Agency/GSE issuer, the maximum maturity may not exceed five (5) years, and the maximum percent of agency callable securities in the portfolio will be 20%.

3. California State and Local Agency Obligations
Obligations of the City, the State of California or any local agency within the state that are general obligation bonds or essential service bonds secured with revenue from a water, sewer, power or electric system, provided that such obligations are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (NRSRO.) No more than 5 percent of the portfolio may be invested in any single issuer. No more than 30 percent of the portfolio may be invested in California State and Local Agency Obligations and other state obligations in the aggregate. The maximum maturity may not exceed five years.

4. Other State Obligations
Registered treasury notes or bonds of any of the other 49 United States in addition to California, including general obligation bonds or bonds payable solely out of the revenues from a revenue-producing property owned, controlled or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to California, provided that such obligations are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5 percent of the portfolio may be invested in any single issuer. No more than 30 percent of the portfolio may be invested in other state obligations and California State and Local Agency Obligations in the aggregate.

The maximum maturity may not exceed five years.

5. Bankers Acceptances
Time drafts or bills of exchange that are drawn on and accepted by a commercial bank and brokered to investors in the secondary market. Purchasers are limited to issuers whose short-term debt is rated in the highest short-term rating category by a NRSRO. Banker’s acceptances cannot exceed a maturity of 180 days. A maximum of 40% of the City’s portfolio may be invested in this category.
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6. Commercial paper
The City may purchase commercial paper with short-term ratings of “A-1” or the equivalent or higher by a NRSRO. Long-term ratings, if any, must be “A” category or its equivalent or higher by a NRSRO. The entity that issues the commercial paper shall meet all the following conditions in either paragraph (A) or paragraph (B):
(A) The entity meets the following criteria: (i) Is organized and operating in the United States as a general corporation. (ii) Has total assets of more than five hundred million dollars ($500,000,000). (iii) Has debt other than commercial paper, if any, that is rated in the “A” category or its equivalent or higher by a NRSRO
(B) The entity meets the following criteria: (i) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (ii) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (iii) Has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less and not represent more than 10 percent of the outstanding paper of an issuing corporation. A maximum of 25 percent of the City’s portfolio may be invested in this category. Under a provision sunsetting on January 1, 2026, no more than 40 percent of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.

7. Negotiable Certificates of Deposit (NCDs)
Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state or federally licensed branch of a foreign bank. Amounts of the NCD insured up to the FDIC limit do not require any credit rating. Any amount above the FDIC insured limit which has short-term ratings of “A-1” or its equivalent or higher by a NRSRO; or long-term obligations rated in a category of “A” or its equivalent or higher by a NRSRO may be purchased. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 5 percent of the portfolio may be invested in any single issuer.

8. Time Deposits
The City may invest in non-negotiable time deposits (CDs) that are FDIC insured or fully collateralized in financial institutions located in California, including United States branches of foreign banks licensed to do business in California.

To be eligible for purchase, the financial institution must have received a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation, as provided Government Code Section 53635.2. Purchases are further limited to financial institutions meeting all capital requirements and rated in one of the three highest rating categories by an NRSRO organization. All time deposits must be collateralized in accordance 287

with California Government Code sections 53650 et. seq. The City, at its discretion, may waive the collateralization requirements for any portion of the deposit that is covered by federal insurance. The maximum maturity of a time certificate of deposit shall not exceed 1 year. A maximum of 30 percent of the City’s portfolio may be invested in this category.

9. Repurchase Agreements
The City may enter into repurchase agreements with primary government securities dealers rated in one of the three highest categories by two NRSROs.

Counterparties should also have (i) a short-term credit rating in the highest category; (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants.

The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the City’s custodian bank delivery versus payment or be handled under a properly executed tri-party repurchase agreement. The total market value of all collateral for each repurchase agreement must equal or exceed 102 percent of the total dollar value of the money invested by the City for the term of the investment.

For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on a weekly basis according to market conditions. Since the market value of the underlying securities is subject to daily market fluctuations, the investment in repurchase agreements shall comply if the value of the underlying securities is brought back up to 102 percent no later than the next business day. Market value must also be calculated each time there is a substitution of collateral.

The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to repurchase agreement.

The City shall have properly executed a master repurchase agreement with each counter party with which it enters into repurchase agreements.

Repurchase agreements are to be used solely as short-term investments not to exceed 90 days. A maximum of 15 percent of the City’s portfolio may be invested in this category.

10.Medium Term Notes
Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases are limited to securities rated in a rating category of “A” or its equivalent or better by at least one NRSRO. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 5% of the portfolio may be invested in any single issuer.
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11.Asset-Backed Securities
A mortgage pass-through security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond from issuers not defined in subsections 1 and 2 of the Eligible Investments Section, of a legal final maturity not exceeding five years. Securities eligible for investment under this subdivision must be rated in in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 20 percent of the City’s portfolio may be invested in this category. No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.

12.Supranational Securities
United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter- American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Securities eligible for investment under this subdivision must be rated in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 10% of the portfolio may be invested in any single issuer.

13.Money Market Funds
Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). To be eligible for purchase, the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500,000,000.

A maximum of 20 percent of the City’s portfolio may be invested in this category (10 percent limit per fund).

14.State of California’s Local Agency Investment Fund (LAIF) The Local Agency Investment Fund was established by the State to enable local agency treasurers to place funds in a pool for investment (California Government Code Section 16429.1 et seq.). The City uses this investment vehicle for short-term liquidity, investment, and yield when rates are declining. 289

Funds are available on demand and interest is paid quarterly. The City may invest up to the maximum permitted by LAIF.

15.Local Government Investment Pools
Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests the securities and obligations authorized in subdivisions (a) to (r), inclusive, of Government Code Section 53601.

IX. Investment Pools/Mutual Funds
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Finance Director shall develop a questionnaire which will answer the following general questions:
 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how it is assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
X. DIVERSIFICATION AND RISK MANAGEMENT
Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.  The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or Agency’s risk preferences. 290

 If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
 Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director in a timely manner.  If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer- term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The Agency, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
 The City will maintain a minimum of six months of budgeted operating expenditures in short-term investments to provide sufficient liquidity for expected disbursements.
 The maximum stated final maturity of individual securities in the portfolio will be five (5) years as measured from date of trade settlement, except as otherwise stated in this policy.
 The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

Maximum maturities may not exceed five years.

XI. MAXIMUM MATURITY
The City’s cash management system is fully designed to accurately monitor and forecast revenues and expenditures thus enabling the City to invest funds possible.

To the extent possible, the City will attempt to match investments with anticipated cash flow requirements. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds.

Where this Policy does not specify a maximum remaining maturity at the time of the investment, no investment shall be made in any security, other than a security 291

underlying a repurchase agreement, that at the time of the investment has a term remaining to maturity in excess of five years as measured from date of trade settlement, unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

XII. INELIGIBLE INVESTMENTS
Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited in this fund. The City shall not invest any funds in inverse floaters, range notes, mortgage derived interest-only strips or in any security that could result in zero interest accrual if held to maturity.

The purchase of any security not listed in Section 8 above, but permitted by the California Government Code, is prohibited unless the City Council approves the investment specifically or as a part of an investment program approved by the City Council. Securities with a trade settlement period longer than 45 days are prohibited.

XIII. BANKS AND SECURITIES DEALERS
The Finance Director shall maintain a list of authorized broker/dealers and financial institutions, which are approved for investment purposes. It shall be the City’s policy to purchase securities only from those authorized institutions and firms. The City shall annually send a copy of the current investment policy to all dealers approved to do business with the City. Each broker dealer or financial institution that has been authorized by the City shall be required to submit the firm’s most recent financial statement. If an investment advisor is used, they may use their own list of approved broker/dealers and financial institutions for investment purposes.

XIV. SAFEKEEPING AND CUSTODY
All security transactions entered by the City shall be conducted on a delivery- versus-payment (DVP) basis. All cash and securities in the City’s portfolio, including those that are managed by an investment advisor, shall be held in safekeeping in the City’s name by a third-party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money market mutual funds, since the purchased securities are not deliverable. Evidence of each of these investments will be held in the Treasury vault. The safekeeping institution shall annually provide a copy of their most recent report on internal controls (Statement of Auditing Standards No. 70, or SAS 70).

XV. PERFORMANCE STANDARDS
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The investment portfolio will be designed to obtain a market-average rate of return during budgetary and economic cycles, considering the City’s investment risk constraints and cash flow needs.

XVI. REPORTING REQUIREMENTS
A Quarterly Investment report shall be provided to the City Council, City Manager, and Finance Director.

1. A quarterly investment report will be submitted within 60 days following the period being reported to the City Council. Reports of the investment of bond proceeds are issued monthly by the Trustee and are included in the quarterly report of the pooled investment fund. The quarterly investment report shall include information on the following:
 Type of Investment
 Issuer
 Date of Maturity
 Par and dollar amount invested on all securities
 Current market value of each security and the source of the valuation  Credit quality of each investment, as determined by one or more nationally recognized credit rating services
 Listing of investment transactions for the quarter being reported upon.  Statement that portfolio follows investment policy, or the way the portfolio is not in compliance
 Statement denoting ability of City to meet its expenditure requirements for the next six months, or provide enough explanation why money is not available
XVII. INVESTMENT POLICY REVIEW
The Finance Director shall periodically submit to the City Council a statement of investment policy outlining any proposed changes, which the City Council must consider at a public meeting.
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Glossary of Terms
Accrued Interest: Interest earned but not yet received.

Active Deposits: Funds which are immediately required for disbursement.

Amortization: An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period.

Annual Comprehensive Financial Report (ACFR): The official annual financial report for public sector entities/companies. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).

Arbitrage: Transactions by which securities are bought and sold in different markets at the same time for the sake of the profit arising from a yield difference in the two markets.

Asked Price: The price a broker/dealer offers to sell securities.

Average Life: The average length of time that an issue of serial bonds and/or term bonds with a mandatory sinking fund features is expected to be outstanding.

Bankers’ Acceptance (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Basis Point: One basis point is one hundredth of one percent (.01).

Bid Price: The price a broker/dealer offers to purchase securities.

Bond: A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Book Entry: The system maintained by the Federal Reserve, by which most money market securities are delivered to an investor’s custodial bank. The Federal Reserve maintains a computerized record of the ownership of these securities and records any changes in ownership corresponding to payments made over the Federal Reserve wire (delivery versus payment.)
Book Value: The value at which a debt security is shown on the holder's balance sheet.

Book value is acquisition cost less amortization of premium or accretion of discount.

Broker: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not take a position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.
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Callable Bond: A bond issue in which all or part of its outstanding principal amount may be redeemed before maturity by the issuer under specified conditions.

Call Price: The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership.

Call Risk: The risk to a bondholder that a bond may be redeemed prior to maturity.

Cash Sale/Purchase: A transaction which calls for delivery and payment of securities on the same day that the transaction is initiated.

Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CDs are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Commercial Paper: A short-term, unsecured, and negotiable promissory note with a fixed maturity of no more than 270 days. By statute, these issues are exempt from registration with the U.S. Securities and Exchange Commission.

Convexity: A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates greater sensitivity of a bond's price to interest rate changes.

Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

Credit Analysis: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.

Credit Risk: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security and a loss will result.

Current Yield: The interest paid on an investment expressed as a percentage of the current price of the security.

Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his or her own account.

Debenture: A bond secured only by the general credit of the issuer.

Defeased Bond Issues: Issues that have sufficient money to retire outstanding debt when due so that the agency is released from the contracts and covenants in the bond document.
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Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free delivery). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Derivative: Securities that are based on, or derived from, some underlying asset, reference date, or index.

Discount: The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Diversification: Dividing investment funds among a variety of securities offering independent returns.

Duration: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity.

The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

Face Value: The principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity.

Fair Value: The amount at which a security could be exchanged between willing parties, other than in a forced or liquidation sale. If a market price is available, the fair value is equal to the market value.

Federal Farm Credit Bank (FFCB): Government-sponsored institution that consolidates the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks and the Banks for Cooperatives. Its securities do not carry direct U. S. Government guarantees.

Federal Funds Rate: The rate of interest at which Federal funds are traded. This rate is considered the most sensitive indicator of the direction of interest rates, as it is currently pegged by the Federal Reserve through open-market operations.

Federal Home Loan Banks (FHLB): Government sponsored wholesale banks, which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.

Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac): Established in 1970 to help maintain the availability of mortgage credit for residential housing. FHLMC finances these operations by marketing guaranteed mortgage certificates and mortgage participation certificates. Its discount notes and bonds do not carry direct U.S.

Government guarantees.
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Federal National Mortgage Association (FNMA): FNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (H.U.D.). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

Federal Open Market Committee (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

Federal Reserve System: The central bank of the U.S., which consists of seven-member Board of Governors, 12 regional banks, and about 5,700 commercial banks that are members.

Fitch IBCA, Inc. (Fitch): One of the three best-known rating agencies in the United States, the others being Moody’s Investment Service, Inc. and Standard and Poor’s Corporation.

Government Accounting Standards Board (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

Government National Mortgage Association (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions.

Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA or VA mortgages. The term pass-through is often used to describe Ginnie Maes.

Government Securities: An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds."

Guaranteed Investment Contracts (GICS): An agreement acknowledging receipt of funds, for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.

Inactive Deposits (Idle Funds): Funds not immediately needed for disbursement.

Investment-Grade Obligations: An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment-grade is restricted to those obligations rated BBB or higher by a rating agency. 297

Interest Rate Risk: The risk of gain or loss in market values of securities due to changes in interest-rate levels. For example, rising interest rates will cause the market value of portfolio securities to decline.

Inverse Floating Rate Note: A debt security with an interest rate stated as a fixed rate minus an index. This calculation causes the rate on the inverse floater to move in the opposite direction of general interest rates. This instrument generally performs well in a declining interest rate environment but will lose value if rates rise.

Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between the bid and asked prices is narrow and reasonable size can be done at those quotes.

Local Agency: County, City, City and County, including a chartered city or county, school district, community college district, public district, or any public or municipal corporation.

Local Agency Investment Fund (LAIF): An investment pool managed by the California State Treasurer. Local government units, with consent of the governing body of that agency, may voluntarily deposit surplus funds for the purpose of investment. Interest earned is distributed by the State Controller to the participating governmental agencies on a quarterly basis.

Make whole call: A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
Mark-to-market: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

Market Risk: Systematic risk of a security that is common to all securities of the same general class (stocks, bonds, notes, money market instruments) and cannot be eliminated by diversification (which may be used to eliminate non-systematic risk).

Market Value: The price at which a security is trading and could presumably be sold.

Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase agreements and reverse repurchase agreements that establish each person’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.
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Medium Term Notes: Instruments issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

Modified Duration: A measure of exposure to market risk of a security or a portfolio. It is the percent change in the price of a security (portfolio) or a 100-basis point change in the security’s (portfolio’s) yield.

Money Market: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptance, etc.) are issued and traded.

Money Market Mutual Fund: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

Moody’s: Moody’s Investment Service, Inc. One of the three best-known rating agencies in the United States, the others being Standard and Poor’s Corporation (S&P) and Fitch IBCA, Inc. (Fitch).

National Association of Securities Dealers (NASD): A self-regulatory organization (SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.

National Recognized Statistical Rating Organization (NRSRO)::

A rating organization designated by the SEC as being nationally recognized, such as Moody's Investor Service, Inc. (Moody’s), Standard & Poor’s (S&P), and Fitch Ratings (Fitch).

Net Asset Value: The market value of one share of an investment company, such as a mutual fund. This figure is calculated by totaling a fund's assets, which includes securities, cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing this total by the number of shares outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio. [(Total assets) - (Liabilities)] / (Number of shares outstanding)
Negotiable Certificate of Deposit: A large denomination certificate of deposit, which can be sold in the open market prior to maturity.

Nominal Yield: The stated rate of interest that a bond pays its current owner, based on par value of the security. It is also known as the "coupon," "coupon rate," or "interest rate." New Issue: Term used when a security is originally "brought" to market.

Note: A written promise to pay a specified amount to a certain entity on demand or on a specified date.

Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the Federal Open Market Committee, (FOMC), to influence the volume of money and credit in 299

the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

Par Value: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond.

Portfolio: Collection of securities held by an investor.

Premium: The amount by which the price paid for a security exceeds the security's par value.

Primary Dealer: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities, broker/dealers, banks and a few unregulated firms.

Principal: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

Prospectus: A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC that typically includes information on the issuer, the issuer’s business, the proposed use of proceeds, the experience of the issuer’s management, and certain certified financial statements (also known as an “official statement”).

Prudent Investor Standard: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state, the so-called legal list. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

Purchase Date: The date in which a security is purchased for settlement on that or a later date.

Range Note: A debt security with a varied interest payment that depends on the number of days the designated index falls within (or in some cases outside) an established range of interest rates. Should rates move beyond the range on either end, the investor faces the risk of a reduced or zero interest payment for the applicable interest period.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Rating Agency: Nationally recognized credit rating agency such as Fitch, Moody’s or S&P.

Rating Category: A credit rating assignment by a Rating Agency shall mean (a) with respect to any long-term rating category, all ratings designated by a particular letter or 300

combination of letters, without regard to any numerical modifier, plus or minus sign or other modifier, and (b) with respect to any short-term or commercial paper rating category, all ratings designated by a particular letter or combination of letters and taking into account any numerical modifier, but not any plus or minus sign or other modifier.

Repurchase Agreement (RP or Repo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement and the terms of the agreement are structured to compensate the buyer for this. Dealers use RP extensively to finance their positions. Exception: when the Fed is said to be doing RP, it is lending money, which is increasing bank reserves.

Reverse Repurchase Agreement (Reverse Repo): A counter party (e.g. investment dealer) buys the securities from the holder of securities (e.g. the Agency) with an agreement to sell them back at a fixed date. The counter party in effect lends the seller, (e.g. the Agency) money for the period of the agreement with terms of the agreement structured to compensate buyer.

Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

Secondary Market: A market for the repurchase and resale of outstanding issues following the initial distribution.

Securities: Investment instruments such as notes, bonds, stocks, money market instruments and other instruments of indebtedness of equity.

Sec Rule 15C3:1: See Uniform Net Capital Rule.

Securities and Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

Settlement Date: The date on which a trade is cleared by delivery of securities against funds.

Serial Bond: A bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired.

Sinking Fund: Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues.

Spread: The difference between two figures or percentages. It may be the difference between the bid (price at which a prospective buyer offers to pay) and asked (price at which an owner offers to sell) prices of a quote, or between the amount paid when bought and the amount received when sold.

Standard and Poor’s Corporation (S&P): One of the three best-known rating agencies in the United States, the others being Moody’s Investment Service, Inc. and Fitch IBCA, Inc. (Fitch).
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Strip (Bonds): Brokerage-house practice of separating a bond into its principal and interest, which are then sold as zero-coupon bonds.

Supranationals: Multi-national organizations whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in member countries.

Swap: An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for another based on a specified principal amount.

Term Bond: Bonds comprising a large part or all of a particular issue, which come due in a single maturity. The issuer usually agrees to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity.

Time Certificate of Deposit: A non-negotiable certificate of deposit, which cannot be sold prior to maturity.

Total Return: The sum of all investment income plus changes in the capital value of the portfolio. For mutual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period. (Price Appreciation) + (Dividends paid) + (Capital gains) = Total Return
Treasury Bills: A noninterest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year.

Treasury Bonds: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

Trustee or trust company or trust department of a bank: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

Underwriter: A dealer which purchases a new issue of municipal securities for resale.

Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

U.S. Government Agencies: Instruments issued by various U.S. Government Agencies most of which are secured only by the credit worthiness of the agency. 302

U.S. Treasury Obligations: Debt obligations of the United States Government sold by the Treasury Department in the forms of Bills, Notes, and Bonds. Bills are short-term obligations that mature in 1 year or less and are sold based on a rate of discount. Notes are obligations that mature between 1 year and 10 years. Bonds are long-term obligations that generally mature in 10 years or more.

Weighted Average Maturity (WAM): The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.

Yield: The rate of annual income returns on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

Yield to Maturity: The rate of income returns on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.

Yield Curve: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

Zero-coupon Securities : Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity.
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OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Amending the Management Group and Senior Executive Team Salary and Benefit Schedules MEETING DATE: July 21, 2025

EXECUTIVE SUMMARY
In accordance with Pittsburg Municipal Code, Title II, Chapter 2.08.090, the City Council shall determine and set salary and benefit levels for City employees. The Management Group and Senior Executive Team are unrepresented employee groups. Positions within these groups are at-will and serve at the pleasure and direction of the City Manager. This item contemplates amendments to the Management Group and Senior Executive Team’s salary and benefits schedule commencing July 1, 2025 through June 30, 2028 (Contract Period).

FISCAL IMPACT
The total net impact to the General Fund in Fiscal Year (FY) 2025/26 is approximately $113,000, of which $80,000 is included in the Fiscal Year 2025/26 adopted budget. The additional costs over the adopted FY 2025/26 budget are $33,000. The costs associated with the terms and conditions for the remaining fiscal years of the Contract Period will be budgeted accordingly in future fiscal years.

RECOMMENDATION
The City Council adopt the Resolution amending the salary and benefits schedules for employees in the Management Group and Senior Executive Team.

BACKGROUND
Historically, the City Council has aligned compensation level adjustments of the unrepresented Management Group and Senior Executive Team with the City’s Management/ Professional/Confidential (MPC) Unit represented by the American Federation of State, County, and Municipal Employees (AFSCME) Union Local 512. 304
The City and AFSCME Union representatives started negotiation sessions in April 2025 to develop a successor Memorandum of Understanding (MOU) and on June 25, 2025, have reached a tentative agreement on the terms and conditions of employment between July 1, 2025 through June 30, 2028 that provides for a three year contract term and amendments to the contract terms regarding cost of living adjustments (COLAs) each year, a fixed additional floating holiday, and another floating holiday applied each year of the term of the agreement, expiring on June 30, 2028.

SUBCOMMITTEE FINDINGS
This item was not presented to a subcommittee.

STAFF ANALYSIS
The AFSCME Union ratified a tentative agreement on June 25, 2025, which provides reciprocity for unrepresented management and senior executives regarding cost-of-living adjustments, holidays and benefit terms for the Contract Period.

Major terms of the agreement are as follows:
 Effective the first pay period following July 1, 2025, unrepresented Management and Senior Executive employees will receive COLA of 2.7%.
 Effective the first pay period following July 1, 2026, unrepresented Management and Senior Executive employees will receive a COLA minimum of 2% and maximum of 3% based on the December 2025 Consumer Price Index for All Urban Consumers for San Francisco-Oakland-Hayward (CPI-U). The maximum COLA may rise to 4% based on the December 2025 CPI-U and a general fund on-going revenue target of $65.5 Million according to the FY 2026/27 adopted budget.  Effective the first pay period following July 1, 2027, unrepresented Management and Senior Executive employees will receive a COLA minimum of 2% and maximum of 3% based on the December 2026 CPI-U. The maximum COLA may rise to 4% based on the December 2026 CPI-U and a general fund on-going revenue target $68 Million according to the FY 2027/28 adopted budget.

o “On-Going Revenue” is defined as revenue generated by existing and ongoing programs such as sales tax; transit occupancy tax; property tax; franchise fees; fines and forfeitures; intergovernmental revenue; permits, licenses, and fees; service fees; and other transfer “types” into the General Fund having taken place consistently for the previous three (3) years. On-going revenue excludes any one-time funds; that have restrictions in which they may be used and those funds specifically designated for capital projects as well as fees or sales taxes paid in relation to development projects subject to a development agreement, as these projects may require one-time fees in excess of the City’s anticipated ongoing revenue projections.
 Compensation, incentives and benefit terms have been more clearly defined for the Chief of Police.
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 Floating Holiday: One (1) additional Floating Holiday (for up to 24 hours of Floating Holiday); swap Lincoln’s Birthday with Juneteenth. Washington’s birthday becomes “President’s Day” (third Monday in February).
o Unrepresented Management and Senior Executives will receive an additional Floating Holiday (for a total of 32 hours of Floating Holiday). The additional 8 hours of Floating Holiday will sunset June 30, 2028, reverting to a total of 24 hours of Floating Holiday.
 Dental Insurance: The City shall provide an annual dental supplement benefit of $250 to be deposited into the employee’s FSA until a viable alternative plan is available and offered to employees. The annual payment will be discontinued thereafter.  Other non-economic items to provide clarity in the agreement.

The terms of the AFSCME/MPC agreement will be incorporated into the Management Group and Senior Executive Team salary and benefit schedules.

ATTACHMENTS: Exhibit A – Management Group Salary and Benefits Schedule Exhibit B – Senior Executive Team Salary and Benefits Schedule Resolution
Report Prepared By: Jennifer Brizel, Director of Human Resources 306

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:

Amending the Unrepresented Management )
Group and Senior Executive Team Salary ) RESOLUTION NO. 25- And Benefits Schedules )
WHEREAS, in accordance with Pittsburg Municipal Code, Title II, Chapter 2.08.090, the City Council shall determine and set salary and benefit levels for City employees. The Management Group and Senior Executive Team are unrepresented employee groups; and WHEREAS, positions within these groups are at-will and serve at the pleasure and direction of the City Manager; and
WHEREAS, historically, the City Council has aligned compensation and benefit adjustments of the unrepresented Management Group and Senior Executive Team with the City’s Management/Professional/Confidential (MPC) Unit represented by the American Federation of State, County, and Municipal Employees (AFSCME) Local 512; and WHEREAS, AFSCME ratified a tentative agreement on June 25, 2025, which provides reciprocity for unrepresented management and senior executive employees regarding cost-of-living adjustments, holidays and benefit terms for the period of July 1, 2025 through June 30, 2028; and
WHEREAS, upon adoption of this Resolution, the City Manager will incorporate the agreed upon terms and conditions to the unrepresented Management and Senior Executive Team Summaries of Benefits.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby approves the proposed amendments to the unrepresented Management Group and Senior Executive Team Summaries of Benefits and authorizes the City Manager to amend the summary documents outlined in the agreements attached hereto and marked as Exhibits A and B, and authorizes corresponding budget appropriations, expenditures, and funding to be incorporated into the budget for Fiscal Years 2025/26, 2026/27, and 2027/28.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 21st day of July 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:
_____________________________
Jelani Killings, Mayor
ATTEST:
_________________________
Alice E. Evenson, City Clerk
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City of Pittsburg
Senior Executive Team Salary & Benefits Schedule
Effective July 101, 20222025

1. POSITIONS COVERED ............................................................................................. 2

2. SALARIES ................................................................................................................. 2

2.1 Winter Closure ......................................................................................................... 2

3. BENEFITS ................................................................................................................. 3

3.1 Medical ...................................................................................................................... 3

3.2 Retiree Medical – hired before January 1, 2012 ................................................ 434

3.3 Dental .................................................................................................................... 656

3.4 Medical and/or Dental Alternative ...................................................................... 656

3.5 Flexible Benefits Plan .......................................................................................... 657

3.6 Life Insurance ...................................................................................................... 776

3.7 Long-Term Disability ........................................................................................... 767

3.8 Deferred Compensation ...................................................................................... 767

3.9 Retirement ............................................................................................................ 768

3.10 Social Security ..................................................................................................... 989

3.11 Education Reimbursement ................................................................................. 989

3.12 Employee Assistance Program ........................................................................ 1089

3.13 Professional Association Dues ...................................................................... 10810

3.14 ExclusionsChief of Police Incentives ............................................................. 10810

4. LEAVES ............................................................................................................ 10910

4.1 Administrative Leave ........................................................................................... 109

4.2 Vacation Accrual & Usage .................................................................................. 109

4.2.1 Accruals ................................................................................................................ 109

4.2.2 Use of Vacation .................................................................................................... 119

4.2.3 Minimum Use ..................................................................................................... 1110

4.2.4 Vacation Buyback .......................................................................................... 111011

4.2.5 Vacation Conversion to 401(a) Contribution ............................................... 121112

4.2.6 Holidays Falling During Vacations ............................................................... 131112

4.2.7 Service Achievement Incentive Plan ................................................................ 1311

4.3 Sick Leave Accrual & Usage ............................................................................. 1412

4.3.2 Limitations .......................................................................................................... 1413

4.3.3 Accruals .............................................................................................................. 1413

4.3.4 Unused Sick Leave ............................................................................................ 1413

4.3.6 Verifications ....................................................................................................... 1513

4.3.7 Notifications ....................................................................................................... 1514

4.3.8 Compensation .................................................................................................... 1514

4.3.9 Unearned Sick Leave ......................................................................................... 1514

4.4 Personal Necessity Leave ............................................................................. 151415

4.5 Holidays/Holiday Pay/Floating Holidays ...................................................... 151415

4.6 Catastrophic Leave ........................................................................................ 161517

4.6.1 Definitions ...................................................................................................... 161517

4.6.3 Procedures ..................................................................................................... 171518

4.7 Bereavement Leave ....................................................................................... 171619

4.8 Compensation (Workers’ Comp Salary Continuation) Leave .................... 181619

4.9 Leave without Pay.......................................................................................... 191816

5. STANDARD HOURS OF WORK & OVERTIME ............................................. 181720 Appendix A. .................................................................................................... 191821

EXHIBIT B
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1. POSITIONS COVERED
This Booklet includes a summary of benefits for all classifications designated as the City Senior Executive Team . All covered positions are at -will appointments, serving at the pleasure of the City Manager.

Positions included in this group are listed in Appendix A.

Whenever there exists a conflict between this document and an employment contract, if any, then said employment contract shall prevail.

Positions within this unit include:

Assistant City Manager
Chief of Police
Director of Community and Economic Development
Director of Community Services
Director of Finance
Director of Human Resources
Director of Public Works
Director of Records and Council Services
Director of Recreation

2. SALARIES
Salary ranges for covered positions shall be as set forth in Appendix A, which is attached hereto and made a part hereof.

In accordance with the City’s Personnel Rules 12.1, Salary Plan, no person may be paid less than the minimum, nor more than the maximum of the salary range for the class in which employed. Further, because the Senior Executive Team has a salary range , and not salary steps , no person’s salary automatically change s when the salary range changes. Advance ment within a salary range is based on performance and requires the approval of the City Manager.

2.1 Winter Closure
Beginning July 5, 2015, the City shall implement a winter closure in each fiscal year. The Winter Closure shall take place sometime during the period of December 1 and January 31 of each fiscal year and shall consist of forty (40) hours of time off during that time frame. .

Beginning with the 2022-23 Fiscal Year, the Winter Closure, will occur as follows.

Beginning with the 2022 -23 Fiscal Year, the Winter Closure, will occur as follows, Non-essential City operations will be closed to the public between the Christmas and New Year’s Day holidays. However, the City shall determine the actual winter closure schedule for each employee in the unit based on the service needs of their department . Employees will be encouraged to take time off, however, it will not be a requirement.

Employees electing to take time off may choose to take vacation, 309

compensatory time, floating holiday time or unpaid time during the closure period. The use of unpaid leave during winter closure time will not negatively impact the employee’s qualification for paid holidays (e.g., December 25 or January 1); or qualification for City-paid health benefits. However, additional paid leaves do not accrue during unpaid leave time.

Non-essential City operations will be closed to the public between the Christmas and New Year’s Day holidays. However, the City shall determine the actual winter closure schedule for each employee in the unit based on the service needs of their department.

Employees will be encouraged to take time off, however, it will not be a requirement. Employees electing to take time off may choose to take vacation, compensatory time, floating holiday time or unpaid time during the closure period.

The City Manager may also choose to close some or all City facilities to the public while maintaining operational staffing levels to allow staff to complete special projects or reduce work backlogs.

Closure of Facilities to the Public
The City Manager may also choose to close some or all City facilities to the public while maintaining operational staffing levels to allow staff to complete special projects or reduce work backlogs.

3. BENEFITS

3.1 Medical
The City will provide a medical insurance plan through Kaiser Permanente and will make every reasonable effort to maintain a second option through a Non -Kaiser HMO plan that allows members to choose their physician based on that physician’s ability to accept coverage through said plan.

City’s contribution toward medical insurance

Effective January 1, 2019, the City’s contribution for a full -time employee and his/her eligible dependents for each level of benefit (single, dual, and family) for medical insurance shall be set at one hundred percent (100%) of the Kaiser Permanente premi um rate. Employees electing to enroll in a medical insurance plan with premium rates higher than the Kaiser Permanente premium rate shall be required to pay the difference in premium rates between the Kaiser Permanente premium rate and the higher plan premium rate selected by the employee.

City’s contribution toward regular part-time employees
Employees working a minimum of one thousand (1,000) hours per fiscal year, but working less than full -time, and their eligible dependents, shall receive pro -rata medical benefits based on scheduled work hours. The remaining medical premium shall be deduct ed from the employee's paycheck. The City’s contribution rate will be the above rate regardless of 310

which of the City’s group health plans (Kaiser or Non-Kaiser HMO Plan ) employees and their dependents participate in.

3.2 Retiree Medical – hired before January 1, 2012
A. Effective January 1, 2012 and only for those regular non-safety employees hired before January 1, 2012 the City provides contribution/reimbursement toward retiree medical insurance as provided below:

1. Retired non-safety employee with a minimum of fifteen (15) but fewer than twenty (20) years of full -time regular City service shall receive the lesser of his/her actual premium amount or fifty percent (50%) of the active employee Kaiser premium per month for the retiree only ; or

2. Retired non-safety employee with a minimum of twenty (20) but fewer than twenty-five (25) years of full-time regular City service shall receive the lesser of his/her actual premium amount or seventy -five percent (75%) of the active employee Kaiser premium per month for the retiree only; or

3. Retired non-safety employee with a minimum of twenty -five (25) years of full -time regular City service shall receive the lesser of his/her actual premium amount or one hundred percent (100%) of the active employee Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month for the retiree and retiree’s spouse.

4. Within the confines of Retiree Medical Insurance, the term “full -time regular City service” shall also include hourly service for those full - time employees who transitioned from hourly status to regular status during the period of 1994 through 1998.

5. A retired non-safety employee’s spouse (spouse at time of retirement only) who receives no City contribution for spousal health insurance is eligible to participate in the City’s offered retiree health insurance program; provided, however, that the retired employee and spouse agree to fully pay the monthly premium plus an additional two percent (2%) of the monthly premium as a City administrative fee.

6. The City’s contribution toward retiree health insurance, and the retiree and/or retiree’s spouse’s participation in the City’s offered retiree health insurance, shall end at the end of the month following the retired non-safety employee’s sixty -fifth (65 th) birthday. In the event the retiree passed away before his/her sixty-fifth (65th) birthday then the City’s contribution toward the surviving spouse’s monthly premium shall continue until the end of the month following what would have been the retired employee’s sixty-fifth (65th) birthday.

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B. Effective for Chief of Police hired as an employee of the City on or after September 15, 2007 , and before July 1, 2011 , the City provides contribution/reimbursement toward retiree medical insurance as follows:

1. Retired safety employees who retire with an industrial disability retirement with fewer than fifteen (15) years of full -time regular City service and his/her surviving spouse shall receive the lesser of his/her actual premium amount or twenty -five percent (25%) of the early retiree Kaiser premium per month (retiree or retiree and spouse, whichever is applicable); or

2. Retired safety employees with a minimum of ten (10) but fewer than fifteen (15) years of full-time regular City service and his/her surviving spouse shall receive the lesser of his/her actual premium amount or twenty-five percent (25%) of the early retiree Kaiser premium per month; or

3. Retired safety employees with a minimum of fifteen (15) but fewer than twenty (20) years of full -time regular City service and his/her surviving spouse shall receive the lesser of his/her actual premium amount or fifty percent (50%) of the early retiree Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month; or

4. Retired safety employees with a minimum of twenty (20) years of full- time regular City service and his/her spouse shall one hundred percent (100%) coverage for the retiree and eligible spouse.

Coverage premiums to be capped at the level of the higher of the two least expensive City early retiree medical plans.

7. Exclusions – The benefits described above shall apply to all current and future retirees except for the following exclusions:

a. Retirees who do not retire directly from City service; or

b. Retirees and their spouses who are included in the Pittsburg Municipal Employees Retirement System of 1948; or

c. Spouses of deceased retirees who remarry an individual not eligible for benefits under this provision; or

d. Retirees who fail to comply with any requirements as described in ‘verifications”; or

e. Spousal benefits described in this provision shall only apply to the spouse married to the retiree at the time of retirement.

Spousal benefits cannot be acquired after retirement nor can they be transferred to a different spouse as in the case of death or divorce and remarriage; or

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8. Verification – Retired employees who do not purchase medical insurance plan made available to retired employees/spouses by the City must submit annually proof of medical insurance. Retired employees and spouses of deceased employees must submit annually v erification, on a form furnished by City, of continued eligibility.

B. Employees hired on or after January 1, 2012 will be provided a Retirement Health Savings (RHS) plan, to which the City and Employee shall both contribute seventy-five dollars ($75) per month.

Participation in the plan is required by the employee.

3.3 Dental
The City contributes one hundred percent (100%) of the dental insurance premium for a full-time employee and his/her eligible dependents.

Employees working a minimum of one thousand (1,000) hours per fiscal year, but working less than full -time, and their eligible dependents, shall receive pro -rata medical benefits based on scheduled work hours. The remaining medical premium shall be deduct ed from the employee's paycheck.

3.4 Medical and/or Dental Alternative
An employee eligible for the City’s sponsored medical insurance and who opts to waive participation because the employee has provided documentation verifying that they are receiving medical insurance coverage from a source other than the City shall have a City monthly contribution of either two -hundred ($200) for single coverage, three-hundred ($300) for dual coverage or five-hundred dollars ($500) for family coverage.

An employee eligible for the City’s sponsored dental insurance and who opts to waive participation because the employee has provided documentation verifying that they are receiving dental insurance coverage from a source other than the City shall have a City monthly contribution of twenty-five dollars ($25.00).

A regular part-time employee represented by this bargaining unit and who elects either the medical alternative and/or dental alternative shall receive one-half (1/2) of the monthly contribution provided to a full-time employee.

3.5 Flexible Benefits Plan
The City offers an Internal Revenue Code Section 125 Plan that contains the components of premium conversion, health care reimbursement account, and dependent care reimbursement account. Employee participation is on an optional basis. The City shall provide and pay all costs of administering the plan.

Effective January 1, 2018, the City shall make an annual contribution (January 1 of each year) of $100.00 to a health care reimbursement flexible spending account for each medical plan subscriber. The City shall also 313

make an annual “matching” contribution (January 1 of each year) of up to $100.00 to the flexible spending account for each medical plan subscriber for a maximum annual City contribution of $200.00. Any employee enrolling into a medical plan after January 1 shall have a prorated amount contributed into the account.

Effective July 1, 2025, t he City shall provide an annual dental supplement benefit of $250 to be deposited into the employee’s FSA until a viable alternative plan is available and provided to employees. The annual payment will be discontinued thereafter.

3.6 Life Insurance
The City provides, at its expense, a Life Insurance/Accidental Death & Dismemberment policy for each employee , including the Chief of Police at the coverage amount of 1&1/2 times their annual salary to a maximum benefit of two hundred fifty thousand dollars ($250,000).

3.7 Long-Term Disability
The City provides, at its expense, long -term disability benefits for covered positions. This plan provides a benefit of 60% of the monthly salary to a maximum salary of fifteen thousand dollars ( $15,000) a month to a maximum benefit of nine thousand dollars ( $9,000) a month, after a one hundred eighty (180) day waiting period.

3.8 Deferred Compensation
The City will make a “matching” contribution to the 457 deferred compensation plan for participating regular full -time employees up to a maximum of one-hundred fifty dollars and zero cents ($150.00) per month.

The City will make a “matching” contribution to the 457 deferred compensation plan for participating regular part -time employees up to a maximum of seventy-five dollars ($75.00) per month.

3.9 Retirement
All current and new employees will be covered by the Public Employees’ Retirement System (PERS) plans in accordance with the California Public Employees’ Pension Reform Act of 2013 (PEPRA).

A. For all represented employees hired by the City of Pittsburg before July 10, 2011 and enrolled in the City’s non-safety PERS benefit with an effective date before July 10, 2011 the employee shall be covered by a pension program provided by the State of Ca lifornia Public Employees’ Retirement System (PERS) to the City through a contract. This system, known as the 2% at 55 formula, is described periodically in brochures distributed by PERS.

The City agrees to provide PERS retirement benefits and maintain the following enhancements to the basic PERS 2% at 55 formula:

1. a. One Year Final Compensation (Section 20042)

2. b. Annual Cost-of-Living Increase at 3% (Section 21335) 314

3. c. Military Service Credit as Public Service (Section 21024)

4. d. Credit for Unused Sick Leave (Section 20965)

5. e. EPMC as Additional Compensation (Section 20691)

B. For all represented non-safety employees hired by the City of Pittsburg on or following July 10, 2011 and enrolled in the City’s non- safety PERS benefit with an effective date of July 10, 2011 or later the employee shall be covered by a pension program provided by the State of California Public Employees’ Retirement System (PERS) to the City through a contract under the 2% at 60 formula, based on the average monthly pay over a thirty -six month period (“3 year average”) with a 2% annual cost -of-living inc rease and as is described periodically in brochures distributed by PERS. The City agrees to provide and maintain the following enhancements to the basic PERS 2% at 60 formula:

a) Military Service Credit as Public Service (Section 21024) b) Credit for Unused Sick Leave (Section 20965)
c) EPMC as Additional Compensation (Section 20691)

Employees enrolled in the 2% at 55 formula or the 2% at 60 formula shall contribute the entire seven percent (7%) employee share.

C. For all represented non-safety employees hired on or after January 1, 2013, who are considered “new members” under California Government Code Section 7522.04(f) shall be in the 2% at 62 CalPERS retirement formula described in Government Code Section 7522.20(a). In addition, “new members” shall be subject to the equal sharing and contribution requirements in Section 7522.30(a) and (c) and shall pay at least 50% of the normal costs.

Effective for Fiscal Year 2017/18 and implemented on July 2, 2017 all non- safety employees within the unit except for the Chief of Police will contribute an additional 1% of salary towards pension costs for a total of 8%.

Effective July 1, 2018, all classic non-safety employees within the unit shall contribute an additional one -half of one percent (.5%) of salary towards CalPERS unfunded accrued liability pension costs for a total of 8.5%.

Effective July 14, 2019, all classic non-safety employees within the unit shall contribute an additional one -half of one percent (.5%) of salary towards CalPERS unfunded accrued liability pension costs for a total of 9%.

D. The Chief of Police will be covered by the Public Employees’ Retirement System (PERS) plans in accordance with the California Public Employees’ Pension Reform Act of 2013 (PEPRA).

E. The Chief of Po lice – (if hired as an employee of the City before October 30, 2011)
The Chief of Police is covered by a pension program provided by the State of California Public Employees’ Retirement System (PERS) to the City 315

through a contract. This system, known as the 3% at 50 formula, is described periodically in brochures distributed by PERS.

The City agrees to provide and maintain the following enhancements to the basic PERS 3% at 50 formula for the Chief of Police:

1. One Year Final Compensation (Section 20042)

2. Annual Cost-of-Living Increase at 3% (Section 21335)

3. Military Service Credit as Public Service (Section 21024)

4. Credit for Unused Sick Leave (Section 20965)

5. Fourth Level 1959 Survivor Benefits (Section 21574)

6. Effective June 17, 2007 through July 9, 2011: EPMC as Additional Compensation (Section 20691). Effective July 10, 2011 the City shall not report EPMC as additional compensation.

Effective July 1, 2018, the Chief of Police will contribute an additional 1% of salary towards pension costs for a total of 12% contribution of salary.

Effective July 14, 2019, the Chief of Police will contribute an additional 1% of salary towards pension cost for a total of 13% contribution of salary.

3.10 Social Security
All non -safety employees shall have coverage under Federal Social Security in accordance with the provisions of law. This program requires contributions by both the employee and the employer in accordance with schedules provided by the Federal Government.

3.11 Education Reimbursement
When, in the opinion of the City Manager, a training course to be taken by an employee will be of benefit to the City, the City Manager may authorize payment by the City of 100% of tuition charges, fees, the cost of textbooks and supplies or twenty -four hundred dollars ($2400), whichever is lower, each calendar year the employee is enrolled in approved training.

Additionally, the City will reimburse 50% of the direct cost of tuition, books, and supplies, or three hundred dollars ($300), whichever is lower, annually for approved direct costs between $2400 and $3000.

Reimbursement of costs associated with training/education will only be made if the employee receives a letter grade of "C", or better or in cases of courses offered as pass/fail, a grade of pass.

Costs for education reimbursement come from each individual departmental budget.

A regular part -time employee shall be eligible for a pro -rated amount of tuition reimbursement.
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3.12 Employee Assistance Program
The City contracts and pays for an employee assistance program providing each employee and their household members with up to eight (8) visits per incident per year.

3.13 Professional Association Dues
The City pays for membership dues in applicable professional associations, subject to approval of the City Manager.

3.14 ExclusionsChief of Police Incentives
Effective July 1, 2022, the Chief of Police shall receive educational and certification pay incentives for possession of the following:
• Ten percent (10%) of base salary for a Masters degree; • Five percent (5%) of base salary for Peace Officer Standards and Training (POST) Advanced Certificate;
• Two and a half (2.5%) of base salary for POST Management Certificate;
• Two and a half (2.5% ) of base salary for a Command College Certificate. The Chief of Police receives benefits outlined in Section 3 - Benefits of this Schedule in accordance with the benefits provided to the members of the Police Captain class within the Police Managers Group, unless detailed otherwise herein
.

The annual uniform allowance for the Chief of Police is one thousand dollars ($1,000). The uniform allowance is prorated every pay period with a regular paycheck.

4. LEAVES

4.1 Administrative Leave
Exempt e mployees receive a maximum of ninety -six (96) hours Administrative Leave each calendar year. Said hours are credited to the employee's Administrative Leave time bank each January 1 st such that the January 1st balance is exactly ninety -six (96) hours. This benefit is made available on a "use or lose" basis and as such may not be carried from one calendar year to the next. All requests for Administrative Leave are to be reviewed and approved by the City Manager.

4.2 Vacation Accrual & Usage

4.2.1 Accruals
The vacation accrual rate shall be:

Years of Continuous
Public Sector Service Accrual Rate
0-5 Years Accrue 4.00 hours per pay period (13 days)
6-10 Years Accrue 5.54 hours per pay period (18 days) 11 Years Accrue 5.85 hours per pay period (19 days)
12 Years Accrue 6.15 hours per pay period (20 days)
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13 Years Accrue 6.47 hours per pay period (21 days)
14 Years Accrue 6.77 hours per pay period (22 days)
15-19 Years Accrue 7.08 hours per pay period (23 days) 20 and more years Accrue 8.62 hours per pay period (28 days)

4.2.1.1 The Chief of Police shall accrue vacation in
accordance with Section 8.1 – Vacation Accrual of the Police Managers Group MOU.

4.2.2 Use of Vacation
Vacation shall be taken at such time as is mutually convenient for the department and the employee.

1. Maximum Accumulation: The maximum accrual allowed is two times annual accrual to a maximum of three hundred and eighty ( 380) hours. Accruals will be monitored by the Finance Department. Once the maximum accrual has been reached, an employee will not accrue additional vacation until his/her accrual balance is reduced, by either use or buyback.

During the declared local emergency for COVID -19, the maximum vacation accrual limit shall be suspended temporarily and reinstated 12 months follow the end of the declared emergency. During the declared local emergency and prior to the reinstatement of th e maximum vacation accrual limit, accrued vacation hours above three hundred eighty (380) hours will have no cash value upon separation of employment. Upon reinstatement of the maximum vacation accrual limit, unused accrued vacation hours in excess of thr ee hundred eighty (380) hours will be lost.

2. Double Compensation Prohibited: Employees shall not work for the City during their vacation.

4.2.3 Minimum Use
Employees must use a minimum of 40 hours of vacation per year. Any exception to this rule must be approved by the City Manager to be eligible for vacation buyback.

4.2.43 Vacation Buyback
Employees may receive vacation pay in lieu of paid time -off, subject to the following limitations . Buyback shall only be made at the request of the employee and upon the approval of the City Manager. Approvals will be granted if it is determined that “buyback” will result in increased cost - effectiveness and efficiency to the City as determined by the City Manager.

Employees may elect to sell back a maximum of forty (40) hours of vacation per calendar year. Employees desiring to sell back vacation must f ile an irrevocable election identifying the number of vacation leave hours they will sell back in November (November 1 -21) of the tax year preceding the sell back. The election will apply only to vacation leave hours accrued in the following tax year and the employee may elect that the pay -out occurs in 318

either the last full pay period in September or the first full pay period in Decembermay receive payment during the City’s designated payment period. Employees who do not pre -designate a sell back amount by the annual deadline will be deemed to have waived the right to sell back any vacation leave in the following tax year and will not be eligible to sell back vacation leave in that year. Vacation hours bought back shall be paid at the employee’s normal hourly rate of pay at the time of the buyback, excluding any enhancements such as out of class or project pay.

Effective July 1, 20142025, the total City -wide allocation for the buyback program will be $ 160,000225,000 per fiscal year. The City shall establish an annual window period for the receipt of vacation buyback requests (November 1 – 21). At the conclusion of the window period, the City will tabulate the total dollar value of the buyback requests. If the tota l dollar value is less than or equal to $160,000225,000 employee will receive, upon the City Manager’s approval, payment as noted above. If the total dollar value of the requests exceeds $160,000225,000, request hours will be pro- rated and employees paid accordingly. Should this occur, employee will be credited with vacation hours in excess of those hours determined eligible for the buyback program.

Individual employees may elect to have payouts of vacation leave deposited directly into the employee’s account in the City’s deferred compensation 457b Plan. If the employee does not so elect or if the funds cannot lawfully be deposited into the employee ’s deferred compensation account (e.g., if they would exceed the maximum contribution), the payout will be included in the employee’s paycheck for the applicable pay period.

The prior -year pre -election requirement set forth in this section will be effective for vacation payouts occurring in Fiscal Year 2022 and later. For 2021 only, employees will be permitted to file two elections: (1) the first for payout of vacation in Dec ember of 2021 and (2) the second for payout of vacation in calendar year 2022.

As part of the City’s open enrollment packet each year, the City shall provide all employees with a copy of the Irrevocable Vacation Pay -Out Election form.

In the event the IRS issues an official circular letter or regulation rescinding the constructive receipt tax issue concerning vacation cash-out as identified in PLR 2001-30015, the annual pay out will revert to the process described in the May 17, 2021, Salary and Benefits Schedule.

4.2.5 Vacation Conversion to 401(a) Contribution
Employees within this bargaining unit will convert an equal dollar amount of vacation towards a contribution to a 401(a) plan. All members of this bargaining unit will be required to contribute an amount equal to eighty (80) hours of vacation for the lowest paid member of the unit. Employees with a higher hourly rate w ill convert however many hours that equate to the same dollar amount as 80 hours for the lowest paid member. 319

4.2.6 Holidays Falling During Vacations
When a day designated and observed by the City as a holiday occurs on a day on which an employee is taking vacation, such employee shall not be charged as using vacation for that day. The employee’s compensation for that day shall be holiday and shall not be paid or charged as vacation.

4.2.7 Service Achievement Incentive Plan
The City acknowledges the value of retaining experienced employees. In recognition of previous years of full -time continuous service with the City, the City shall implement a Service Achievement Incentive Plan as follows:

1. At the completion of five (5) years of service, the employee shall receive forty ( 40) hours of vacation to be added to the employee’s reserve vacation bank.

2. At the completion of ten (10) years of service, the employee shall receive fifty ( 50) hours of vacation to be added to the employee’s reserve vacation bank.

3. At the completion of fifteen ( 15) years of service, the employee shall receive sixty (60) hours of vacation to be added to the employee’s reserve vacation bank.

4. At the completion of twenty ( 20) years of service, the employee shall receive seventy (70) hours of vacation to be added to the employee’s reserve vacation bank.

5. At the completion of twenty-five ( 25) years of service, the employee shall receive eighty (80) hours of vacation to be added to the employee’s reserve vacation bank.

6. At the completion of thirty (30) years of service, the employee shall receive eighty ( 80) hours of vacation to be added to the employee’s reserve vacation bank.

7. At the completion of thirty-five ( 35) years of service, the employee shall receive eighty (80) hours of vacation to be added to the employee’s reserve vacation bank.

8. At the completion of forty (40) years of service, the employee shall receive eighty ( 80) hours of vacation to be added to the employee’s reserve vacation bank.

9. Upon initial implementation of the Service Achievement Incentive Plan, effective July 1, 2018:

a. Employees with at least five (5) years, but less than ten (10) years of full-time continuous service with the City shall receive a preliminary reserve vacation bank of twenty (20) hours.

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b. Employees with ten (10) years or more of full-time continuous service with the City shall receive a preliminary reserve vacation bank of forty (40) hours.

10. The Service Achievement Incentive Plan bank shall not have a vacation leave accrual limit. However, as of the last pay period in December of each year, the City will contribute the balance of each employee’s Service Achievement Incentive Plan bank in excess of eighty (80) hours directly into the employee’s account in the City’s deferred compensa tion 457b Plan. In the event the direct contribution is disallowed or has a negative impact on the Plan’s qualified status, the City will address that concern.

Employees may utilize the reserve vacation bank accrued hours in accordance with section 4.2.2 - Use of Vacation.

4.3 Sick Leave Accrual & Usage

4.3.1 Definitions
“Sick leave” shall apply only to instances wherein an employee, because of sickness or injury, is unable to perform their regular duties.

4.3.2 Limitations
Sick leave with pay shall be granted to all employees as provided for below.

Sick leave may be used for sickness or injury arising out of an employee’s work for the City, as well as for sickness or injuries which are not work connected. Sick leave shall not be considered as a right which an employee may use at their discretion but shall be allowed only in case of necessity and actual personal sickness, disability; provided, however, that any employee who engages in any gainful business or employment while on sick leave shall be subject to dismissal. Provided further, that sick lea ve may not be used if the sickness or injury results from an employee’s outside employment.in accordance with the City’s Personnel Rules.

4.3.3 Accruals
Regular full-time employees shall accrue sick leave at the rate of eight (8) hours per month.

Regular part -time employees shall accrue sick leave in the amount proportionate to the ratio of scheduled hours of work per week to the standard work week, but in no case shall the number of sick leave hours accrued each month exceed eight (8).

4.3.4 Unused Sick Leave
Unused sick leave may be accumulated. There are no maximum accrual limits for sick leave. No payment shall be made for accumulated sick leave at the time of separation from employment. Upon retirement, unused sick leave is converted to service credit.

4.3.5 Sick Leave Incentive
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Employees who use no sick leave in any fiscal quarter shall have four (4) hours credited towards vacation with a maximum accrual during any one (1) year to be sixteen (16) hours.

Any hours taken under the Emergency Paid Sick Leave Act (up to 80 hours of paid sick leave for COVID -19 related events) will not disqualify an employee from this sick leave incentive.

4.3.6 Verifications
Sick leave for consecutive periods of time exceeding three working days will be allowed only upon presentation to the employee's supervisor of a certificate from a licensed physician stating the nature of the illness and acknowledging the employee's inability to work for the period involved.

Notwithstanding the above language, an employee who has been on sick leave for less than three working days may be required to present medical verification of their sickness in the event that the supervisor demonstrates that the employee has a demonstrated pattern of possible sick leave abuse, which includes the use of numerous sick days in conjunction with days off, or establishes that the employee has used a disproportionate number of sick days in comparison to other similarly situated employees, and said illnesses/injuries do not appear to be job-related.

4.3.76 Notifications
Employees must notify their supervisor prior to the beginning of any working shift at which they will not report for work and for which they desire to use sick leave.

4.3.87 Compensation
Full pay and allowances will accrue to employees during periods of authorized sick leave.

4.3.98 Unearned Sick Leave
Employees may not "borrow" on unearned sick leave.

4.4 Personal Necessity Leave
Employees may use a maximum of thirty-two (32) hours of accrued sick leave per calendar year for reasons of personal necessity. For purposes of this section, personal necessity shall mean the employee requests leave from their work to attend to personal business that cannot be dispensed with off duty. Personal necessity leave is to be requested in advance and shall be reviewed and (dis)approved by the City Manager. Personal necessity leave is considered use of sick leave.

4.5 Holidays/Holiday Pay/Floating Holidays
All employees shall be entitled to the following paid holidays each year:

1. January 1st – New Year’s Day
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2. Third Monday in January – Martin Luther King

3. February 12th – Lincoln’s Day

4.3. Third Monday in February – Washington’s President’s Day

5.4. March 31st – Cesar Chavez Day

5. Last Monday in May – Memorial Day

6. June 19th - Juneteenth

7. July 4th – Independence Day

8. First Monday in September – Labor Day

9. Second Monday in October – Columbus Day

10. November 11th – Veteran’s Day

11. Fourth Thursday in November – Thanksgiving Day

12. Day Following Thanksgiving – Friday following Thanksgiving

13. December 25th – Christmas Day

14. Sixteen Twenty-four (1624) hours of floating holiday.

Effective July 1, 2025, Senior Executives will receive an additional Floating Holiday (for a total of 32 hours of Floating Holiday). The additional 8 hours of Floating Holiday will sunset June 30, 2028, reverting to a total of 24 hours of Floating Holiday.

Holidays falling on a Saturday will be observed on the preceding Friday.

Holidays falling on a Sunday will be observed on the following Monday.

Holidays falling during the week will be observed on the actual day.

4.6 Catastrophic Leave
The Catastrophic Leave Program is designed to assist employees who have exhausted paid time credits due to an employee’s or their immediate family member’s serious or catastrophic illness or injury. This program allows other employees to donate time to the affected employee so that he/she can remain in a paid status for a longer period of time, thus partially reducing the financial impact of the illness or injury.

4.6.1 Definitions

1. Catastrophic Illness or Injury – A medically certified illness, injury impairment, physical or mental condition of an employee or an employee’s immediate family member that prevents an employee from returning to work for a period of thirty (30) calendar days or more.

The term “immediate family member” shall mean spouse or domestic partner, child, stepchild, adopted or foster child, parent or parent -in- law.

2. Leave to be donated – Vacation or sick leave.

4.6.2 Eligibility

1. Donors
a. Only regular employees are eligible to donate accrued vacation or sick leave.
b. Donating employees may not reduce their balance of earned vacation or sick leave below forty (40) hours by reason of such donation.
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2. Recipients
a. Only regular employees may participate in the Catastrophic Leave program.
b. Certification from a physician that the illness/injury will preclude the employee from returning to work for at least thirty (30) calendar days must be submitted to the Human
Resources Department with the application.
c. All accumulated time, sick leave, vacation time and
administrative leave must have been exhausted.
d. A request for a leave of absence without pay for medical reasons has been submitted and approved.
e. Request for participation in the program shall be made on an Application for Catastrophic Leave Program form (available in Human Resources).

4.6.3 Procedures

1. Donations must be a minimum of one day at a time and submitted on the appropriate donation form.

2. Time donated will be converted from the type of time donated to sick leave and credited to the recipient employee’s sick leave balance on an hour -for-hour basis and shall be paid at the rate of pay of the recipient employee.

3. Donations, once made, are irrevocable.

4. Any period of donated leave may be counted as Family and Medical Leave time.

5. Employees may not remain on catastrophic leave or receive leave donations for a continuous period exceeding six (6) calendar months.

6. Verification of catastrophic illness must be submitted by a licensed physician to Human Resources.

7. Employees are eligible for this benefit only once during their employment with the City.

8. Employees must have accumulated a minimum of one hundred and twenty (120) hours of sick leave or eighty (80) hours of vacation time before a donation can be made.

4.7 Bereavement Leave
Employees shall be entitled to three (3) working days off with pay whenever there is a death in their immediate family. For purposes of this section, the immediate family shall consist of spouse, domestic partner, children, parents, grandparents, grandchildren, brothers, sisters, step-children, step- parents, half-brothers, half-sisters, fathers-in-law and mothers-in-law.

Time off for funerals or bereavement leave must be taken within six (6) months of the death of the immediate family member. In the event an employee desires to take additional time off with pay in excess of that provided for a death in the immediate family, or in the event the employee desires to attend the actual funeral or service of active or retired City officials, employees, or other family members not covered in this section, and if the employee has unused vacation or sick leave, the employee may take such additional time off or, the time necessary to attend such funeral, and charge it against 324

his/her unused vacation, compensatory time, and/or sick leave.

Bereavement Leave in accordance with the City’s Personnel Rules.

4.8 Compensation (Workers’ Comp Salary Continuation) Leave Employees are covered by Workers' Compensation benefits pursuant to the statutes of the State of California. For non -safety employees, over and above the Workers' Compensation statutory benefits, the City shall pay full salary on the first day of work los s due to an on -the-job injury/illness and will continue to provide said benefits through the employees' sixtieth (60th) calendar day of work loss. After the sixtieth (60th) calendar day, benefits shall be paid pursuant to the statutes of the State of California.

4.9 Leave without Pay
Employees may receive authorization for an unpaid leave of absence for up to six (6) months, with the approval of the City Manager.

5. STANDARD HOURS OF WORK & OVERTIME
The City has determined that all classifications within this unit are exempt and are therefore not eligible for overtime in accordance with Title 29, Part 541 of the Code of Federal Regulations, FLSA.

During a labor dispute, a natural or war -caused disaster, or other emergency situation, the City Council, by motion, or the City Manager may authorize overtime pay for members of this unit who are customarily not entitled thereto. The City’s standard work week is forty (40) hours.
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Appendix A.

A. Effective the first pay period following July 1, 2025, Senior Executives will receive a cost-of-living adjustment (COLA) of 2.7%.

B. Effective the first pay period following July 1, 2026, Senior Executives will receive a COLA minimum of 2% and maximum of 3% based on the December 2025 Consumer Price Index for All Urban Consumers for San Francisco-Oakland-Hayward (CPI-U). The maximum COLA may rise to 4% based on the December 2025 Consumer Price Index for All Urban Consumers for San Francisco-Oakland-Hayward and a general fund on- going revenue target of $65.5M according to the FY 2026/2027 adopted budget.

C. Effective the first pay period following July 1, 2027, Senior Executives will receive a COLA minimum of 2% and maximum of 3% based on the December 2026 Consumer Price Index for All Urban Consumers for San Francisco-Oakland-Hayward (CPI-U). The maximum COLA may rise to 4% based on the December 2026 Consumer Price Index for All Urban Consumers for San Francisco-Oakland-Hayward and a general fund on- going revenue target $68M according to the FY 2027/2028 adopted budget.

D. “On-Going Revenue” is defined as revenue generated by existing and ongoing programs such as sales tax; transit occupancy tax; property tax; franchise fees; fines and forfeitures; intergovernmental revenue; permits, licenses, and fees; service fees; and other transfer “types” into the General Fund having taken place consistently for the previous three (3) years. On-going revenue excludes any one-time funds; that have restrictions in which they may be used and those funds specifically designated for capital projects as well as fees or sales taxes paid in relation to development projects subject to a development agreement, as these projects may require one-time fees in excess of the City’s anticipated ongoing revenue projections.

A. E. Fiscal Year 20222025/23 26 monthly full-time salary ranges are:

Effective July 106, 2022 2025
Classification Minimum Maximum
Assistant City Manager 15,86917,454 20,24922,277
Chief of Police 18,070558 22,84423,461
Director of City Clerk Services 11,849 14,401
Director of Community and Economic Development 14,99213,569 17,15119,134 Director of Community Services 13,56914,783 17,15118,867 Director of Finance 13,56914,783 17,15118,867
Director of Human Resources 13,56914,783 17,15118,867
Director of Public Works/City Engineer 14,66315,574 17,82519,668 Director of Records and Council Services 11,062 13,444
Director of Recreation 13,56914,783 17,15118,867

Effective August 7, 2022 (Equity Adjustment)
Classification Minimum Maximum
Chief of Police 16,449 20,795
Director of Community and Economic Development 13,633 17,231 326

Director of Public Works 14,678 17,843

Effective July 9, 2023
Classification Minimum Maximum
Assistant City Manager 16,503 21,059
Chief of Police 17,241 21,795
Director of Community & Economic Development 14,245 18,004 Director of Community Services 14,112 17,836
Director of Finance 14,112 17,836
Director of Human Resources 14,112 17,836
Director of Public Works 15,280 18,575
Director of Records and Council Services 11,504 13,982
Director of Recreation 14,112 17,836

Effective July 7, 2024
Classification Minimum Maximum
Assistant City Manager 16,998 21,691
Chief of Police 18,070 22,844
Director of City Clerk Services 11,849 14,401
Director of Community & Economic Development 14,741 18,631 Director of Community Services 14,535 18,371
Director of Finance 14,535 18,371
Director of Human Resources 14,535 18,371
Director of Public Works/City Engineer 15,754 19,151
Director of Recreation 14,535 18,371

B. F. Whenever an individual is employed in a listed classification with a monthly salary listed, at less than full-time, then said employee shall receive a pro-rata equivalent of the stated monthly salary.

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Effective July 10, 2022February 6, 2023July 1, 2025

1. POSITIONS COVERED .................................................................................................. 2

2. SALARIES ...................................................................................................................... 2

2.1 Winter Closure ............................................................................................................... 2

3. BENEFITS ...................................................................................................................... 3

3.1 Medical ........................................................................................................................... 3

3.2 Retiree Medical – hired before January 1, 2012 .......................................................... 3

3.3 Dental ............................................................................................................................. 5

3.4 Medical and/or Dental Alternative ................................................................................ 5

3.5 Flexible Benefits Plan ................................................................................................... 5

3.6 Life Insurance ................................................................................................................ 6

3.7 Long-Term Disability ..................................................................................................... 6

3.8 Deferred Compensation ................................................................................................ 6

3.9 Retirement ..................................................................................................................... 6

3.10 Social Security .............................................................................................................. 7

3.11 Education Reimbursement ......................................................................................... 87

3.12 Employee Assistance Program .................................................................................... 8

3.13 Professional Association Dues .................................................................................... 8

3.14 Professional Certifications ........................................................................................... 8

4. LEAVES .......................................................................................................................... 8

4.1 Administrative Leave .................................................................................................... 8

4.2 Vacation Accrual & Usage ............................................................................................ 8

4.2.1 Accruals ....................................................................................................................... 8

4.2.2 Use of Vacation ........................................................................................................... 9

4.2.3 Minimum Use ................................................................................................................ 9

4.2.4 Vacation Buyback ........................................................................................................ 9

4.2.5 Holidays Falling During Vacations ........................................................................... 10

4.2.6 Service Achievement Incentive Plan ........................................................................ 11

4.3 Sick Leave Accrual & Usage ...................................................................................... 12

4.3.1 Definitions ............................................................................................................... 1212

4.3.2 Limitations .............................................................................................................. 1212

4.3.3 Accruals .................................................................................................................. 1212

4.3.4 Unused Sick Leave ................................................................................................ 1212

4.3.5 Sick Leave Incentive .............................................................................................. 1212

4.4 Personal Necessity Leave .......................................................................................... 13

4.5 Holidays/Holiday Pay/Floating Holidays ............................................................... 1413

4.6 Catastrophic Leave ..................................................................................................... 14

4.7 Bereavement Leave .................................................................................................... 15

4.8 Compensation (Workers’ Comp Salary Continuation) Leave .......................... 161615

4.9 Leave without Pay ....................................................................................................... 16

5. STANDARD HOURS OF WORK & OVERTIME ........................................................... 16 Appendix A. ......................................................................................................... 171719

EXHIBIT A
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1. POSITIONS COVERED
This Booklet includes a summary of benefits for all classifications designated as the Management Group. All covered positions are at-will appointments, serving at the pleasure of the City Manager.

Positions included in this group are listed in Appendix A.

Whenever there exists a conflict between this document and an employment contract, if any, then said employment contract shall prevail.

2. SALARIES
Salary ranges for covered positions shall be as set forth in Appendix A, which is attached hereto and made a part hereof.

In accordance withwith the City’s Personnel Rules, 12.1, Salary Plan, no person may be paid less than the minimum, nor more than the maximum of the salary range for the class in which employed. Further, because the Management Group has a salary range, and not salary steps, no person’s salary automatically changes when the salary range changes. Advance within a salary range is based on performance and requires the approval of the City Manager.

2.1 Winter Closure

Beginning on July 5, 2015, the City implemented a 40 -hour unpaid “Winter Closure” accomplished by a one point nine two five percent (1.925%) reduction in pay (1.54 hours per pay period).

Effective the first full pay period following the later of City Council adoption or July 1, 2022, the 1.925% deduction will cease and the City will no longer deduct 1.54 hours per pay period.

Beginning July 5, 2015, the City shall implement a winter closure in each fiscal year.

Beginning with the 2022-23 Fiscal Year, the Winter Closure, will occur as follows, n. Non- essential City operations will be closed to the public between the Christmas and New Year’s Day holidays. However, the City shall determine the actual winter closure schedule for each employee in the unit based on the service needs of their department. Employees will be encouraged to take time off, however, it will not be a requirement. Employees electing to take time off may choose to take vacation, compensatory time, floating holiday time or unpaid time during the closure period. The use of unpaid leave during winter closure time will not negatively impact the employee’s qualification for paid holidays (e.g., December 25 or January 1); or qualification for City -paid h ealth benefits. However, additional paid leaves do not accrue during unpaid leave time.

Employees who choose to work on a City closure day may be assigned to perform duties outside of their normal job duties. Any assigned duties must be reasonable in nature.

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Closure of Facilities to the Public
The City Manager may also choose to close some or all City facilities to the public while maintaining operational staffing levels to allow staff to complete special projects or reduce work backlogs.

3. BENEFITS

3.1 Medical
The City will provide a medical insurance plan through Kaiser Permanente and will make every reasonable effort to maintain a second option through a Non -Kaiser HMO plan that allows members to choose their physician based on that physician’s ability to accept coverage through said plan.

City’s contribution toward medical insurance

Effective January 1, 2019, the City’s contribution for a full -time employee and his/her eligible dependents for each level of benefit (single, dual, and family) for medical insurance shall be set at one hundred percent (100%) of the Kaiser Permanente premi um rate. Employees electing to enroll in a medical insurance plan with premium rates higher than the Kaiser Permanente premium rate shall be required to pay the difference in premium rates between the Kaiser Permanente premium rate and the higher plan premium rate selected by the employee.

City’s contribution toward regular part-time employees
Employees working a minimum of one thousand (1,000) hours per fiscal year, but working less than full -time, and their eligible dependents, shall receive pro -rata medical benefits based on scheduled work hours. The remaining medical premium shall be deduct ed from the employee's paycheck. The City’s contribution rate will be the above rate regardless of which of the City’s group health plans (Kaiser or Non-Kaiser HMO Plan ) employees and their dependents participate in.

3.2 Retiree Medical – hired before January 1, 2012
A. Effective January 1, 2012 and only for those regular employees hired before January 1, 2012 the City provides contribution/reimbursement toward retiree medical insurance as provided below:

1. Retired employee with a minimum of fifteen (15) but fewer than twenty (20) years of full -time regular City service shall receive the lesser of his/her actual premium amount or fifty percent (50%) of the active employee Kaiser premium per month for the retiree only; or

2. Retired employee with a minimum of twenty (20) but fewer than twenty-five (25) years of full -time regular City service shall receive the lesser of his/her actual premium amount or seventy-five percent (75%) of the active employee Kaiser premium per month for the retiree only; or

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3. Retired employee with a minimum of twenty -five (25) years of full - time regular City service shall receive the lesser of his/her actual premium amount or one hundred percent (100%) of the active employee Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month for the retiree and retiree’s spouse.

4. Within the confines of Retiree Medical Insurance, the term “full -time regular City service” shall also include hourly service for those full - time employees who transitioned from hourly status to regular status during the period of 1994 through 1998.

5. A retired employee’s spouse (spouse at time of retirement only) who receives no City contribution for spousal health insurance is eligible to participate in the City’s offered retiree health insurance program; provided, however, that the retired employee and spouse agree to fully pay the monthly premium plus an additional two percent (2%) of the monthly premium as a City administrative fee.

6. The City’s contribution toward retiree health insurance, and the retiree and/or retiree’s spouse’s participation in the City’s offered retiree health insurance, shall end at the end of the month following the retired employee’s sixty -fifth (65 th) birthday. In the event the retiree passed away before his/her sixty-fifth (65th) birthday then the City’s contribution toward the surviving spouse’s monthly premium shall continue until the end of the month following what would have been the retired employee’s sixty-fifth (65th) birthday.

7. Exclusions – The benefits described above shall apply to all current and future retirees except for the following exclusions:

a. Retirees who do not retire directly from City service; or

b. Retirees and their spouses who are included in the Pittsburg Municipal Employees Retirement System of 1948; or

c. Spouses of deceased retirees who remarry an individual not eligible for benefits under this provision; or

d. Retirees who fail to comply with any requirements as described in ‘verifications”; or

e. Spousal benefits described in this provision shall only apply to the spouse married to the retiree at the time of retirement.

Spousal benefits cannot be acquired after retirement nor can they be transferred to a different spouse as in the case of death or divorce and remarriage; or

8. Verification – Retired employees who do not purchase medical insurance plan made available to retired employees/spouses by the 331

Management Group Salary & Benefits Schedule
City must submit annually proof of medical insurance. Retired employees and spouses of deceased employees must submit annually verification, on a form furnished by City, of continued eligibility.

B. Employees hired on or after January 1, 2012 will be provided a Retirement Health Savings (RHS) plan, to which the City and Employee shall both contribute seventy-five ($75) per month.

Participation in the plan is required by the employee;

3.3 Dental
The City contributes one hundred percent (100%) of the dental insurance premium for a full-time employee and his/her eligible dependents.

Employees working a minimum of one thousand (1,000) hours per fiscal year, but working less than full -time, and their eligible dependents, shall receive pro -rata medical benefits based on scheduled work hours. The remaining medical premium shall be deduct ed from the employee's paycheck.

3.4 Medical and/or Dental Alternative
An employee eligible for the City’s sponsored medical insurance and who opts to waive participation because the employee has provided documentation verifying that they are receiving medical insurance coverage from a source other than the City shall have a City monthly contribution of either two -hundred ($200) for single coverage, three-hundred ($300) for dual coverage or five-hundred dollars ($500) for family coverage.

An employee eligible for the City’s sponsored dental insurance and who opts to waive participation because the employee has provided documentation verifying that they are receiving dental insurance coverage from a source other than the City shall have a Ci ty monthly contribution of twenty-five dollars ($25.00).

A regular part-time employee represented by this bargaining unit and who elects either the medical alternative and/or dental alternative shall receive one-half (1/2) of the monthly contribution provided to a full-time employee.

3.5 Flexible Benefits Plan
The City offers an Internal Revenue Code Section 125 Plan that contains the components of premium conversion, health care reimbursement account, and dependent care reimbursement account. Employee participation is on an optional basis. The City shall provide and pay all costs of administering the plan.

Effective January 1, 2018, the City shall make an annual contribution (January 1 of each year) of $100.00 to a health care reimbursement flexible spending account for each medical plan subscriber. The City shall also make an annual “matching” contribution (January 1 of each year) of up to 332

Management Group Salary & Benefits Schedule
$100.00 to the flexible spending account for each medical plan subscriber for a maximum annual City contribution of $200.00. Any employee enrolling into a medical plan after January 1 shall have a prorated amount contributed into the account.

Effective July 1, 2025, t he City shall provide an annual dental supplement benefit of $250 to be deposited into the employee’s FSA until a viable alternative plan is available and provided to employees. The annual payment will be discontinued thereafter.

3.6 Life Insurance
The City provides, at its expense, a Life Insurance/Accidental Death & Dismemberment policy for each employee at the coverage amount of 1&1/2 times their annual salary to a maximum benefit of two hundred fifty thousand dollars ($250,000).

3.7 Long-Term Disability
The City provides, at its expense, long -term disability benefits for covered positions. This plan provides a benefit of 60% of the monthly salary to a maximum salary of fifteen thousand dollars ($15,000) a month to a maximum benefit of nine thousand dollars ($9,000) a month, after a one hundred eighty (180) day waiting period.

3.8 Deferred Compensation
The City will make a “matching” contribution to the 457 deferred compensation plan for participating regular full -time employees up to a maximum of one-hundred fifty dollars and zero cents ($150.00) per month.

The City will make a “matching” contribution to the 457 deferred compensation plan for participating regular part -time employees up to a maximum of seventy-five dollars ($75) per month.

3.9 Retirement
All current and new employees will be covered by the Public Employees’ Retirement System (PERS) plans in accordance with the California Public Employees’ Pension Reform Act of 2013 (PEPRA).

A. For all represented employees hired by the City of Pittsburg before July 10, 2011 and enrolled in the City’s non-safety PERS benefit with an effective date before July 10, 2011 the employee shall be covered by a pension program provided by the State of Ca lifornia Public Employees’ Retirement System (PERS) to the City through a contract. This system, known as the 2% at 55 formula, is described periodically in brochures distributed by PERS.

The City agrees to provide PERS retirement benefits and maintain the following enhancements to the basic PERS 2% at 55 formula:

a. One Year Final Compensation (Section 20042)
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b. Annual Cost-of-Living Increase at 3% (Section 21335) c. Military Service Credit as Public Service (Section 21024) d. Credit for Unused Sick Leave (Section 20965)
e. EPMC as Additional Compensation (Section 20691)

B. For all represented employees hired by the City of Pittsburg on or following July 10, 2011 and enrolled in the City’s non -safety PERS benefit with an effective date of July 10, 2011 or later the employee shall be covered by a pension program provided by t he State of California Public Employees’ Retirement System (PERS) to the City through a contract under the 2% at 60 formula, based on the average monthly pay over a thirty-six month period (“3 year average”) with a 2% annual cost-of-living increase and as is described periodically in brochures distributed by PERS. The City agrees to provide and maintain the following enhancements to the basic PERS 2% at 60 formula:

a. Military Service Credit as Public Service (Section 21024) b. Credit for Unused Sick Leave (Section 20965)
c. EPMC as Additional Compensation (Section 20691)

Employees enrolled in the 2% at 55 formula or the 2% at 60 formula shall contribute the entire seven percent (7%) employee share.

C. For all represented employees hired on or after January 1, 2013, who are considered “new members” under California Government Code Section 7522.04(f) shall be in the 2% at 62 CalPERS retirement formula described in Government Code Section 7522.20(a). In addition, “new members” shall b e subject to the equal sharing and contribution requirements in Section 7522.30(a) and (c) and shall pay at least 50% of the normal costs.

Effective for Fiscal Year 2017/18 and implemented on July 2, 2017 all employees within the unit will contribute an additional 1% of salary towards pension costs for a total of 8%.

Effective July 1, 2018, all classic employees within the unit shall contribute an additional one -half of one percent (.5%) of salary towards CalPERS unfunded accrued liability pension costs for a total of 8.5%.

Effective July 14, 2019, all classic employees within the unit shall contribute an additional one -half of one percent (.5%) of salary toward s CalPERS unfunded accrued liability pension costs for a total of 9%.

3.10 Social Security
All non -safety employees shall have coverage under Federal Social Security in accordance with the provisions of law. This program requires contributions by both the employee and the employer in accordance with schedules provided by the Federal Government.
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3.11 Education Reimbursement
When, in the opinion of the City Manager, a training course to be taken by an employee will be of benefit to the City, the City Manager may authorize payment by the City of 100% of tuition charges, fees, the cost of textbooks and supplies or twenty-four hundred dollars ($2400), whichever is lower, each calendar year the employee is enrolled in approved training.

Additionally, the City will reimburse 50% of the direct cost of tuition, books, and supplies, or three hundred dollars ($300), whichever is lower, annually for approved direct costs between $2400 and $3000.

Reimbursement of costs associated with training/education will only be made if the employee receives a letter grade of "C", or better or in cases of courses offered as pass/fail, a grade of pass.

Costs for education reimbursement come from each individual departmental budget.

A regular part -time employee shall be eligible for a pro -rated amount of tuition reimbursement.

3.12 Employee Assistance Program
The City contracts and pays for an employee assistance program providing each employee and their household members with up to eight (8) visits per incident per year.

3.13 Professional Association Dues
The City pays for membership dues in applicable professional associations, subject to approval of the City Manager.

3.14 Professional Certifications
An Assistant Director of Planning who possesses an active and valid American Institute of Certified Planners (AICP) Certification shall receive an additional five percent (5%) of base pay for AICP Certification.

4. LEAVES

4.1 Administrative Leave
Exempt e mployees receive a maximum of ninety -six (96) hours Administrative Leave each calendar year. Said hours are credited to the employee's Administrative Leave time bank each January 1 st such that the January 1st balance is exactly ninety -six (96) hours. This benefit is made available on a "use or lose" basis and as such may not be carried from one calendar year to the next. All requests for Administrative Leave are to be reviewed and approved by the City Manager.

4.2 Vacation Accrual & Usage

4.2.1 Accruals:
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The vacation accrual rate shall be:

Years of
Pittsburg Regular Service Accrual Rate
0-5 Years Accrue 3.08 hours per pay period (10 days)
6-10 Years Accrue 4.62 hours per pay period (15 days) 11 Years Accrue 4.92 hours per pay period (16 days)
12 Years Accrue 5.23 hours per pay period (17 days)
13 Years Accrue 5.54 hours per pay period (18 days)
14 Years Accrue 5.85 hours per pay period (19 days)
15-19 Years Accrue 6.15 hours per pay period (20 days) 20 and more years Accrue 7.69 hours per pay period (25 days)

Regular part -time employees shall accrue vacation in the amount proportionate to the ratio of scheduled hours of work per work week to the standard work week, but in no case shall the number of days of vacation accrued per year exceed those days allowed for a similarly classified regular full-time employee.

4.2.2 Use of Vacation:

Vacation shall be taken at such time as is mutually convenient for the department and the employee.

1. Maximum Accumulation: The maximum accrual allowed is two times annual accrual to a maximum of three hundred and eighty ( 380) hours. Accruals will be monitored by the Finance Department. Once the maximum accrual has been reached, an employee will not accrue additional vacation until his/her accrual balance is reduced, by either use or buyback.

During the declared local emergency for COVID -19, the maximum vacation accrual limit shall be suspended temporarily and reinstated 12 months follow the end of the declared emergency. During the declared local emergency and prior to the reinstatement of the maximum vacation accrual limit, accrued vacation hours above three hundred eighty (380) hours will have no cash value upon separation of employment. Upon reinstatement of the maximum vacation accrual l imit, unused accrued vacation hours in excess of three hundred eighty (380) hours will be lost.

2. Double Compensation Prohibited: Employees shall not work for the City during their vacation.

4.2.3 Minimum Use:

Employees must use a minimum of 40 hours of vacation per year. Any exception to this rule must be approved by the City Manager to be eligible for vacation buyback.

4.2.43 Vacation Buyback:
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Employees may receive vacation pay in lieu of paid time -off, subject to the follow limitations. Buyback shall only be made at the request of the employee and upon the approval of the City Manager. Approvals will be granted if it is determined that “buyback” will result in increased cost - effectiveness and efficiency to the City as determined by the City Manager.

Employee may elect to sell back to a maximum of eighty ( 80) hours of vacation per calendar year. Employees desiring to sell back vacation must file an irrevocable election identifying the number of vacation leave hours they will sell back in November (November 1-21) of the tax year preceding the sell back. The election will apply only to vacation leave hours accrued in the following tax year and the employee may elect that the pay-out occurs in either the last full pay period in September or the first full pay period in Decemberreceive payment during the City’s designated payment period .

Employees who do not pre -designate a sell back amount by the annual deadline will be deemed to have waived the right to sell back any vacation leave in the following tax year and will not be eligible to sell back vacation leave in that year. Vacation hours bought back shall be paid at the employee’s normal hourly rate of pay at the time of the buyback, excluding any enhancements such as out of class pay. The City Manager may authorize buyback in excess of the eighty (80)-hour limit in urgent and/or emergency situations.

Effective July 1, 2014 2025 the total City-wide allocation for the buyback program will be $160,000 225,000 per fiscal year. The City shall establish an annual window period for the receipt of vacation buyback requests (November 1 – 21). At the conclusion of the window period, the City will tabulate the total dollar value of the buyback requests. If the total dollar value is less than or equal to $160225,000 employee will receive, upon the City Manager’s approval, payment as noted above. If the total dollar value of the requests exceeds $160225,000, request hours will be pro- rated and employees paid accordingly. Should this occur, employee will be credited with vacation hours in excess of those hours determined eligible for the buyback program.

Individual employees may elect to have payouts of vacation leave deposited directly into the employee’s account in the City’s deferred compensation 457b Plan. If the employee does not so elect or if the funds cannot lawfully be deposited into the employee ’s deferred compensation account (e.g., if they would exceed the maximum contribution), the payout will be included in the employee’s paycheck for the applicable pay period.

The prior -year pre -election requirement set forth in this section will be effective for vacation payouts occurring in Fiscal Year 2022 and later. For 2021 only, employees will be permitted to file two elections: (1) the first for payout of vacation in Dec ember of 2021 and (2) the second for payout of vacation in calendar year 2022.

As part of the City’s open enrollment packet each year, the City shall provide all employees with a copy of the Irrevocable Vacation Pay -Out Election form.
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In the event the IRS issues an official circular letter or regulation rescinding the constructive receipt tax issue concerning vacation cash-out as identified in PLR 2001-30015, the annual pay out will revert to the process described in the June 21, 2021 Salary and Benefits Schedule.

4.2.5 Holidays Falling During Vacations:

When a day designated and observed by the City as a holiday occurs on a day on which an employee is taking vacation, such employee shall not be charged as using vacation for that day. The employee’s compensation for that day shall be holiday and shall not be paid or charged as vacation.

4.2.6 Service Achievement Incentive Plan:

The City acknowledges the value of retaining experienced employees. In recognition of previous years of full -time continuous service with the City, the City shall implement a Service Achievement Incentive Plan as follows:

1. At the completion of five (5) years of service, the employee shall receive forty (40) hours of vacation to be added to the employee’s reserve vacation bank.

2. At the completion of ten (10) years of service, the employee shall receive fifty (50) hours of vacation to be added to the employee’s reserve vacation bank.

3. At the completion of fifteen (15) years of service, the employee shall receive sixty (60) hours of vacation to be added to the employee’s reserve vacation bank.

4. At the completion of twenty (20) years of service, the employee shall receive seventy (70) hours of vacation to be added to the employee’s reserve vacation bank.

5. At the completion of twenty-five (25) years of service, the employee shall receive eighty ( 80) hours of vacation to be added to the employee’s reserve vacation bank.

6. At the completion of thirty (30) years of service, the employee shall receive eighty (80) hours of vacation to be added to the employee’s reserve vacation bank.

7. At the completion of thirty-five (35) years of service, the employee shall receive eighty ( 80) hours of vacation to be added to the employee’s reserve vacation bank.

8. At the completion of forty (40) years of service, the employee shall receive eighty (80) hours of vacation to be added to the employee’s reserve vacation bank.

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9. Upon initial implementation of the Service Achievement Incentive Plan, effective July 1, 2018:

a) Employees with at least five (5) years, but less than ten (10) years of full-time continuous service with the City shall receive a preliminary reserve vacation bank of twenty (20) hours.

b) Employees with 10 years or more of full -time continuous service with the City shall receive a preliminary reserve vacation bank of 40 hours.

10. The Service Achievement Incentive Plan bank shall not have a vacation leave accrual limit. However, as of the last pay period in December of each year, the City will contribute the balance of each employee’s Service Achievement Incentive Plan bank in excess of eighty (80) hours directly into the employee’s account in the City’s deferred compensa tion 457b Plan. In the event the direct contribution is disallowed or has a negative impact on the Plan’s qualified status, the City will address that concern.

Employees may utilize the reserve vacation bank accrued hours in accordance with section 4.2.2 - Use of Vacation.

4.3 Sick Leave Accrual & Usage

4.3.1 Definitions:
“Sick leave” shall apply only to instances wherein an employee, because of sickness or injury, is unable to perform their regular duties.

4.3.21 Limitations:

Sick leave with pay shall be granted to all employees as provided for below.

Sick leave may be used for sickness or injury arising out of an employee’s work for the City, as well as for sickness or injuries which are not work connected. Sick leave shall not be considered as a right which an employee may use at their discretion but shall be allowed only in case of necessity and actual personal sickness, disability; provided, however, that any employee who engages in any gainful business or employment while on sick leave shall be subject to dismissal. Provide d further, that sick leave may not be used if the sickness or injury results from an employee’s outside employment.in accordance with the City’s Personnel Rules.

4.3.3 Accruals:

Regular full-time employees shall accrue sick leave at the rate of eight (8) hours per month.

Regular part -time employees shall accrue sick leave in the amount proportionate to the ratio of scheduled hours of work per week to the standard work week, but in no case shall the number of sick leave hours accrued each month exceed eight (8).

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4.3.4 Unused Sick Leave:

Unused sick leave may be accumulated. There are no maximum accrual limits for sick leave. No payment shall be made for accumulated sick leave at the time of separation from employment. Upon retirement, unused sick leave is converted to service credit.

4.3.5 Sick Leave Incentive:

Employees who use no sick leave in any payroll year quarter shall have four (4) hours credited towards vacation with a maximum accrual during any one (1) year to be sixteen (16) hours.

Any hours taken under the Emergency Paid Sick Leave Act (up to 80 hours of paid sick leave for COVID -19 related events) will not disqualify an employee from this sick leave incentive.

4.3(f) Verifications:

Sick leave for consecutive periods of time exceeding three working days will be allowed only upon presentation to the employee's supervisor of a certificate from a licensed physician stating the nature of the illness and acknowledging the employee's inability to work for the period involved.

Notwithstanding the above language, an employee who has been on sick leave for less than three working days may be required to present medical verification of their sickness in the event that the supervisor demonstrates that the employee has a demonstrated pattern of possible sick leave abuse, which includes the use of numerous sick days in conjunction with days off, or establishes that the employee has used a disproportionate number of sick days in comparison to other similarly situated employees, and said illnesses/injuries do not appear to be job-related.

4.3(g).6 Notifications:

Employees must notify their supervisor prior to the beginning of any working shift at which they will not report for work and for which they desire to use sick leave.

4.3(h).7 Compensation:

Full pay and allowances will accrue to employees during periods of authorized sick leave.

4.3.8(i) Unearned Sick Leave:

Employees may not "borrow" on unearned sick leave.

4.4 Personal Necessity Leave
Employees may use a maximum of thirty-two (32) hours of accrued sick leave per calendar year for reasons of personal necessity. For purposes of this section, personal necessity shall mean the employee requests leave from their work to attend to personal business that cannot be dispensed with off duty. Personal necessity leave is to be requested in advance and 340

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shall be reviewed and (dis)approved by the City Manager. Personal necessity leave is considered use of sick leave.

4.5 Holidays/Holiday Pay/Floating Holidays
All employees shall be entitled to the following paid holidays each year:

1. January 1st – New Year’s Day

2. Third Monday in January – Martin Luther King

3. February 12th – Lincoln’s Day

4.3. Third Monday in February – Washington’s President’s Day

5.4. March 31st – Cesar Chavez Day

5. Last Monday in May – Memorial Day

6. June 19th - Juneteenth

7. July 4th – Independence Day

8. First Monday in September – Labor Day

9. Second Monday in October – Columbus Day

10. November 11th – Veteran’s Day

11. Fourth Thursday in November – Thanksgiving Day

12. Day Following Thanksgiving – Friday following Thanksgiving

13. December 25th – Christmas Day

14. Sixteen Twenty-four (2416) hours of floating holiday.

Effective July 1, 2025, Unrepresented Managers will receive an additional Floating Holiday (for a total of 32 hours of Floating Holiday). The additional 8 hours of Floating Holiday will sunset June 30, 2028, reverting to a total of 24 hours of Floating Holiday.

Holidays falling on a Saturday will be observed on the preceding Friday.

Holidays falling on a Sunday will be observed on the following Monday.

Holidays falling during the week will be observed on the actual day.

4.6 Catastrophic Leave
The Catastrophic Leave Program is designed to assist employees who have exhausted paid time credits due to an employee’s or their immediate family member’s serious or catastrophic illness or injury. This program allows other employees to donate time to the affected employee so that he/she can remain in a paid status for a longer period of time, thus partially reducing the financial impact of the illness or injury.

4.6(a) Definitions:

1. Catastrophic Illness or Injury – A medically certified illness, injury impairment, physical or mental condition of an employee or an employee’s immediate family member that prevents an employee from returning to work for a period of thirty (30) calendar days or more.

The term “immediate family member” shall mean spouse or domestic partner, child, stepchild, adopted or foster child, parent or parent -in- law.

2. Leave to be donated – Vacation or sick leave.
341

Management Group Salary & Benefits Schedule

4.6(b) Eligibility:

1. Donors
a. Only regular employees are eligible to donate accrued vacation or sick leave.
b. Donating employees may not reduce their balance of earned vacation or sick leave below forty (40) hours by reason of such donation.

2. Recipients
a. Only regular employees may participate in the Catastrophic Leave program.
b. Certification from a physician that the illness/injury will preclude the employee from returning to work for at least thirty (30) calendar days must be submitted to the Human
Resources Department with the application.
c. All accumulated time, sick leave, vacation time and
administrative leave must have been exhausted.
d. A request for a leave of absence without pay for medical reasons has been submitted and approved.
e. Request for participation in the program shall be made on an Application for Catastrophic Leave Program form (available in Human Resources).

4.6(c) Procedures:

1. Donations must be a minimum of one (1) day at a time and submitted on the appropriate donation form.

2. Time donated will be converted from the type of time donated to sick leave and credited to the recipient employee’s sick leave balance on an hour-for-hour basis and shall be paid at the rate of pay of the recipient employee.

3. Donations, once made, are irrevocable.

4. Any period of donated leave may be counted as Family and Medical Leave time.

5. Employees may not remain on catastrophic leave or receive leave donations for a continuous period exceeding six (6) calendar months.

6. Verification of catastrophic illness must be submitted by a licensed physician to Human Resources.

7. Employees are eligible for this benefit only once during their employment with the City.

8. Employees must have accumulated a minimum of one hundred and twenty (120) hours of sick leave or eighty (80) hours of vacation time before a donation can be made.

4.7 Bereavement Leave
Employees shall be entitled to three (3) working days off with pay whenever there is a death in their immediate family. For purposes of this section, the immediate family shall consist of spouse, domestic partner, children, parents, grandparents, grandchildren, brothers, sisters, step-children, step- parents, half-brothers, half-sisters, fathers-in-law and mothers-in-law. 342

Management Group Salary & Benefits Schedule

Time off for funerals or bereavement leave must be taken within six (6) months of the death of the immediate family member. In the event an employee desires to take additional time off with pay in excess of that provided for a death in the immediate family, or in the event the employee desires to attend the actual funeral or service of active or retired City officials, employees, or other family members not covered in this section, and if the employee has unused vacation or sick leave, the employee may take such additional time off or, the time necessary to attend such funeral, and charge it against his/her unuse d vacation, compensatory time, and/or sick leave.Bereavement Leave in accordance with the City’s Personnel Rules.

4.8 Compensation (Workers’ Comp Salary Continuation) Leave Employees are covered by Workers' Compensation benefits pursuant to the statutes of the State of California. For non -safety employees, over and above the Workers' Compensation statutory benefits, the City shall pay full salary on the first day of work los s due to an on -the-job injury/illness and will continue to provide said benefits through the employees' sixtieth (60th) calendar day of work loss. After the sixtieth (60th) calendar day, benefits shall be paid pursuant to the statutes of the State of California.

4.9 Leave without Pay
Employees may receive authorization for an unpaid leave of absence for up to six (6) months, with the approval of the City Manager.

5. STANDARD HOURS OF WORK & OVERTIME
The City has determined that all classifications within this unit are exempt and are therefore not eligible for overtime in accordance with Title 29, Part 541 of the Code of Federal Regulations, FLSA.

During a labor dispute, a natural or war -caused disaster, or other emergency situation, the City Council, by motion, or the City Manager may authorize overtime pay for members within this unit who are customarily not entitled thereto. The City’s standard work week is forty (40) hours.
343

Management Group Salary & Benefits Schedule
Appendix A.

A. Effective the first pay period following July 1, 2025, Unrepresented Management employees will receive a cost-of-living adjustment (COLA) of 2.7%.

B. Effective the first pay period following July 1, 2026, Unrepresented Management employees will receive a COLA minimum of 2% and maximum of 3% based on the December 2025 Consumer Price Index for All Urban Consumers for San Francisco- Oakland-Hayward (CPI-U). The maximum COLA may rise to 4% based on the December 2025 Consumer Price Index for All Urban Consumers for San Francisco- Oakland-Hayward and a general fund on-going revenue target of $65.5M according to the FY 2026/2027 adopted budget.

C. Effective the first pay period following July 1, 2027, Unrepresented Management employees will receive a COLA minimum of 2% and maximum of 3% based on the December 2026 Consumer Price Index for All Urban Consumers for San Francisco- Oakland-Hayward (CPI-U). The maximum COLA may rise to 4% based on the December 2026 Consumer Price Index for All Urban Consumers for San Francisco- Oakland-Hayward and a general fund on-going revenue target $68M according to the FY 2027/2028 adopted budget.

D. “On-Going Revenue” is defined as revenue generated by existing and ongoing programs such as sales tax; transit occupancy tax; property tax; franchise fees; fines and forfeitures; intergovernmental revenue; permits, licenses, and fees; service fees; and other transfer “types” into the General Fund having taken place consistently for the previous three (3) years. On-going revenue excludes any one-time funds; that have restrictions in which they may be used and those funds specifically designated for capital projects as well as fees or sales taxes paid in relation to development projects subject to a development agreement, as these projects may require one-time fees in excess of the City’s anticipated ongoing revenue projections.

A. Fiscal Year 20222025/263 monthly full-time salary ranges are:

Effective July 6, 2025
Classification Minimum Maximum
Assistant Director of Community and Economic
Development 14,156 17,206

Assistant Director of Finance 12,667 15,397
Assistant Director of Public Works/Engineering 14,156 17,206 Assistant Director of Public Works/Utilities 14,156 17,206 Assistant to the City Manager 12,168 14,790
Deputy Chief Information Systems Officer 12,667 15,397 Deputy Director, Information Technology Operations 12,667 15,397 Deputy General Manager, Pittsburg Power Company 12,667 15,397 Executive Assistant 7,125 8,661
Paralegal 7,125 8,661
Power Company Manager 13,563 16,485
A.

344

Management Group Salary & Benefits Schedule
Effective July 10, 2022
Position Minimum Maximum
Assistant Director of Finance 11,516 13,995

Assistant Director of Planning 11,516 13,995
Assistant to the City Manager 11,062 13,444
City Engineer 12,328 14,985
Deputy Chief Information Systems Officer 11,516 13,995

Executive Assistant 6,476 7,872

Power Company Manager 12,328 14,985
Water Utilities Manager 12,328 14,985

Effective August 7, 2022
Position Minimum Maximum
Assistant Director of Planning 11,570 14,060

Effective July 9, 2023
Position Minimum Maximum
Assistant Director of Community & Economic Development 13,332 16,193 Assistant Director of Finance 11,977 14,555 Assistant Director of Planning 12,089 14,692
Assistant to the City Manager 11,504 13,982 City Engineer 12,821 15,584
Deputy Chief Information Systems Officer 11,977 14,555 Executive Assistant 6,735 8,187
Paralegal 6,735 8,187
Power Company Manager 12,821 15,584
Water Utilities Manager 12,821 15,584

Effective July 7, 2024
Position Minimum Maximum
Assistant Director of Community & Economic
Development 13,794 16,754
Assistant Director of Finance 12,336 14,992
Assistant Director of Planning 12,511 15,204
Assistant Director of Public Works, Utilities 13,794 16,754 Assistant to the City Manager 11,849 14,401
City Engineer 13,206 16,052
Deputy Director -IT Operations 12,336 14,992
Deputy Chief Information Systems Officer 12,336 14,992
Deputy General Manager, Pittsburg Power Company 12,336 14,992 345

Management Group Salary & Benefits Schedule
Executive Assistant 6,937 8,433
Paralegal 6,937 8,433
Power Company Manager 13,206 16,052
Water Utilities Manager 13,206 16,052

B. Whenever an individual is employed in a listed classification with a monthly salary listed, at less than full-time, then said employee shall receive a pro-rata equivalent of the stated monthly salary.

346

OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Approving the Terms and Conditions of Employment for Police Officers’ Association (POA) for the Period July 1, 2025 through June 30, 2028
MEETING DATE: July 21, 2025

EXECUTIVE SUMMARY
The City of Pittsburg and the Police Officers’ Association (POA) propose terms and conditions of employment for the period of July 1, 2025, through June 30, 2028 (Contract Period).

FISCAL IMPACT
The total net impact to the General Fund in Fiscal Year 2025/26 is approximately $957,000, of which $367,000 is reflected in the adopted budget. The additional cost over the adopted FY 2025/26 budget is approximately $590,000. The costs associated with the terms and conditions for the remaining fiscal years of the Contract Period will be budgeted accordingly in future fiscal years.

RECOMMENDATION
Staff recommend that the City Council adopt the Resolution approving the tentative agreement between the City and POA for the Contract Period, authorizing the City Manager to prepare and execute a successor Memorandum of Understanding (MOU), and authorizing corresponding budget appropriations, expenditures, and funding to be incorporated into the budget for Fiscal Years 2025/26, 2026/27, and 2027/28.

BACKGROUND
The City and POA started negotiation sessions in March 2025 to develop a successor MOU and after meeting numerous times to discuss proposals surrounding the upcoming contract term, wages, and other contract items, have reached a tentative agreement on the terms and conditions of employment that provide for a three-year contract, cost of living adjustments (COLAs) each year, equity adjustments, condensing the salary steps from nine steps to six steps and amendments to the contract terms regarding holidays and holiday 347
pay, longevity incentive pay, Retiree Medical Trust for PEPRA employees, vacation buy- back, and other non-economic items. The current POA MOU expired June 30, 2025.

POA membership ratified the parameters of the tentative agreements package on July 10, 2025.

SUBCOMMITTEE FINDINGS
This item was not reviewed by a subcommittee.

STAFF ANALYSIS
The terms of the agreement between the City and POA include the following:
• Effective the first pay period following July 1, 2025, POA represented employees will receive a COLA of 2% and equity adjustment of 3%.
• Effective the first pay period following July 1, 2026, POA represented employees will receive a COLA of 2% and equity adjustment of 2%.
• Effective the first pay period following July 1, 2027, POA represented employees will receive a COLA of 2% and equity adjustment of 2%.
• Holiday in-lieu pay of 5.5% will be eliminated and 5.5% will be added to base pay.

POA will recognize the following holidays for overtime pay at 1.5x base hourly rate:

1. Jan 1 – New Years

2. Memorial Day

3. July 4 – Independence Day

4. Labor Day

5. Veterans Day

6. Thanksgiving Day

7. Day Following Thanksgiving

8. Christmas Eve

9. Christmas Day
The overtime pay would apply to the entire shift that starts on one of the above holidays, not just hours worked on the holiday. Employees will continue to receive two floating holidays annually.
• Steps A, B, and C will be eliminated from the salary range. Any police officer currently in steps A-C will move to D. Effective the first pay period following July 1, 2025, there will be six pay steps for the Police Officer salary range. • Longevity Incentive Pay: The City shall establish a Longevity program with the following premiums. The maximum Longevity Incentive will be 7.5%. As used in this section, “Years of Service” refers to continuous years of City service. However, employees will be granted up to ten (10) years of service credit based on sworn service as a peace officer as defined in Chapter 4.5, Section 830 of the California Penal Code with a different city, county, municipal district, college/university, state or federal agency. Lateral employees seeking service credit for service with other employers must provide satisfactory proof of prior service as a peace officer.

Longevity Pay will not be provided until the City has evaluated and confirmed the prior years of service.
348
Bargaining unit members with the following years of service shall receive the corresponding longevity premium (premiums are not cumulative):
7 years – 2.5%
12 years – 5.0%
16 years – 7.5%
Service Achievement Plan will be eliminated for future accruals. Existing Service Achievement Incentive Plan hours will be maintained in the employee’s accrual bank.

Maximum Combined Education, POST Certification, and Longevity Incentives are 15%. Employees who are currently receiving the 15% education incentive pay for possessing a master’s degree and Advanced POST Certificate will be grandfathered in at 15%. No additional Longevity Pay will be added for years of service for employees currently receiving the 15% education incentive pay for possessing a master’s degree and Advanced POST Certificate.
• Retiree Medical Trust for PEPRA Employees: The City and POA will implement PORAC Retiree Medical Trust for PEPRA employees. The City will convert current Retiree Health Contribution of $75 per month to the PORAC Retiree Medical Trust.

Eligible employees will increase and pay on their own Retiree Health contributions of $125 per month, for a total of $200 per month, and will be subject to the terms offered by PORAC Retiree Medical Trust. Existing Retiree Medical contributions will remain with the current financial services provider.
• The Citywide vacation buy-back program will increase to $225,000 annually from $180,000 annually. Employees may request vacation buy-back during the City’s designated request period and payment will be made during the City’s designated pay-out period each year.
• Additional non-economic items include terms for disciplinary action appeals and removal of references to COVID-19 in the MOU.

Should the City Council approve these terms identified in the comprehensive tentative agreement, staff will prepare a successor MOU that incorporates the agreed upon changes.

ATTACHMENTS: Exhibit A – Comprehensive Tentative Agreement between the City of Pittsburg and POA
Resolution
Report Prepared By: Jennifer Brizel, Director of Human Resources 349

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:

Approving the Terms and Conditions of )
Employment for the Police Officers’ ) Resolution No.25
Association (POA) for the Period of )
July 1, 2025 through June 20, 2028 )
WHEREAS, the most recent Memorandum of Understanding (MOU) between the City of Pittsburg and the Police Officers’ Association (POA) expired on June 30, 2025; and WHEREAS, after meeting numerous times to discuss proposals surrounding the upcoming contract term, wages, and other contract concerns, the City and POA have reached a tentative agreement on the terms and conditions of employment; and WHEREAS, staff recommends a three-year contract term, cost of living adjustments (COLAs) each year, equity adjustments, condensing the salary steps from nine steps to six steps, and amendments to the contract terms regarding holidays and holiday pay, longevity incentive pay, Retiree Medical Trust for PEPRA employees, vacation buy-back, and other non-economic items; and
WHEREAS, City representatives and the duly appointed representatives of POA have met and conferred in accordance with Section 3500 et seq. of the California Government Code; and
WHEREAS, the membership of the POA ratified the tentative agreement, attached as Exhibit A to the Staff Report on July 10, 2025; and
WHEREAS, upon adoption of this Resolution, the City Manager and staff will prepare a successor MOU that incorporates the agreed upon terms and conditions.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Pittsburg hereby approves the tentative agreement between the City and POA for the period of July 1, 2025 through June 30, 2028, authorizes the City Manager to prepare and execute a successor MOU consistent with the terms and conditions outlined in the agreement, attached hereto and marked as Exhibit A, and authorizes corresponding budget appropriations, expenditures, and funding to be incorporated into the budget for Fiscal Years 2025/26, 2026/27, and 2027/28.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 21st day of July 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:
__________________________
Jelani Killings, Mayor
ATTEST:
_________________________
Alice E. Evenson, City Clerk
350
1 City of Pittsburg and the Pittsburg Police Officers’ Association Tentative Agreement

July 9, 2025

The parties agree that a total tentative agreement for a successor Memorandum of Understanding (MOU) has been reached on the below items. This total tentative agreement is contingent upon ratification by the bargaining unit and approval by the City Council. All items in the current MOU not identified in thus total tentative agreement shall remain the same.

The effective date of any proposed enhancement in this total tentative agreement is the first pay period following July 1, 2025, unless otherwise noted.

CITY COMPREHENSIVE PROPOSAL PACKAGE
Term:

Three Years
(July 1, 2025 - June 30, 2028)
Cost of Living Adjustment and Equity
Effective the first full pay period following July 1, 2025: 2% Cost of living adjustment (COLA) added to base salary AND 3% equity adjustment added to base salary.

Effective the first full pay period following July 1, 2026: 2% COLA added to base salary AND 2% equity added to base salary.

Effective the first full pay period following July 1, 2027: 2% COLA added to base salary AND 2% equity added to base salary.

Holiday Pay
Conversion of Holiday in Lieu - Eliminate Holiday in Lieu Pay and convert the existing pay into a 5.5% salary range increase.

Employees who work on observed holidays will receive overtime pay at 1.5 times:

1. Jan 1 – New Years

2. Memorial Day

3. July 4 – Independence Day

4. Labor Day

5. Veterans Day

6. Thanksgiving Day

7. Day Following Thanksgiving

8. Christmas Eve

9. Christmas Day
The overtime pay would apply to the entire shift that starts on one of the above holidays, not just hours worked on the holiday.

Docusign Envelope ID: A93C881A-3711-4814-B79A-287BFBB0C0A3 351
2 Employees will retain two (2) work days of floating holiday each year.

An employee hired or promoted to a regular position after June 30th shall receive half of the floating holiday time during the first calendar year of such regular position appointment.

Floating holidays must be taken during the calendar year in which earned or will be lost.

Salary Steps:

Steps A, B, C will be eliminated from the salary range. Any police officer currently in Steps A-C moves to D.

Effective the first pay period following July 1, 2025, there will be six pay steps for the Police Officer salary range.

Longevity Incentive Pay:

The City shall establish a Longevity program with the following premiums. The maximum Longevity Incentive will be 7.5%.

As used in this section, “Years of Service” refers to continuous years of City service. However, employees will be granted up to ten (10) years of service credit based on sworn service as a peace officer as defined in Chapter 4.5, Section 830 of the California Penal Code with a different city, county, municipal district, college/university, state or federal agency. Lateral employees seeking service credit for service with other employers must provide satisfactory proof of prior service as a peace officer and Longevity Pay will not be provided until the City has evaluated and confirmed the prior service.

Bargaining unit members with the following years of service shall receive the corresponding longevity premium (premiums are not cumulative):

7 years – 2.5%
12 years – 5.0%
16 years – 7.5%

Service Achievement Plan is eliminated for future accruals. Existing Service Achievement Incentive Plan hours will be maintained in the employee’s accrual bank.

Maximum Combined Education/ POST Certification / Longevity Incentives are 15%. Employees who are currently receiving the 15% education incentive pay for possessing a master’s degree and Advanced POST Certificate will be grandfathered in at 15%. No additional Longevity Pay will be added for years of service for employees currently receiving the 15% education incentive pay for possessing a master’s degree and Advanced POST Certificate.

Retiree Medical Trust for PEPRA Employees:

The City and POA will implement PORAC Retiree Medical Trust for PEPRA employees. The City will convert current Retiree Health Contribution of $75 per month to the PORAC Retiree Medical Trust. Eligible employees will increase their Retiree Health contributions to $125 per month and will be subject to the terms offered by PORAC Retiree Medical Trust. Existing Retiree Medical contributions will remain with Mission Square.

Vacation Buy-Back
Increase Citywide Vacation Buy-Back allocation to $225K annually; limit to one payout period annually Disciplinary Action
Written reprimands will be appealed to Chief; employee may write a rebuttal statement; remove City Attorney references.

Docusign Envelope ID: A93C881A-3711-4814-B79A-287BFBB0C0A3 352
3 COVID-19
Remove COVID Leave References in MOU: Sections 8.3, 9.3, 9.4. The City will maintain any existing hours that are still in members’ banks until June 30, 2026, per the side letter agreement

__________________________________ _________________________________ Pittsburg Police Officer Association City of Pittsburg Docusign Envelope ID: A93C881A-3711-4814-B79A-287BFBB0C0A3 7/10/2025
7/10/2025
353

OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Increasing the Measure M Base Allocation and Increasing the Allocation for Road Repairs Beginning FY 2026-27
MEETING DATE: July 21, 2025

EXECUTIVE SUMMARY
Measure M is a half-cent general sales tax measure where the funds generated may be used for any governmental purpose. Proceeds have been allocated each year to purposes then most in need of funding such as public safety, economic development, senior center operations, road repairs, and youth programs.

FISCAL IMPACT
Currently, Measure M Funds generated are allocated in the following amounts (collectively, the “Base Allocation”) which total $4,900,000:
• Public Safety $2,850,000
• Economic Development $450,000
• Senior Center Operations $425,000
• Road Repairs $750,000
• Youth Programs $425,000
There is $200,000 in the Measure M Reserve Funds. Any Measure M Funds received that exceeds the Base Allocation are considered Measure M Surplus Funds and are available for the City Council to allocate to projects and programs as deemed appropriate.

If the Resolution is approved, the annual Measure M base allocation for Road Repairs will be increased from $750,000 to $1,250,000, effectively increasing the total Measure M Base Allocation from $4,900,000 to $5,400,000.
354

RECOMMENDATION
Staff recommends that the City Council adopt the Resolution which will:
• Allocate $575,627 of Measure M Surplus Funds generated in FY 2024/25 to the Public Works FY 2025/26 Measure M base allocation to be used for Road Repairs in FY 2025/26.
• Starting in FY 2026/27, increase the annual Measure M base allocation for Road Repairs from $750,000 to $1,250,000, effectively increasing the total Measure M Base Allocation from $4,900,000 to $5,400,000.

BACKGROUND
Due to the 2008 Global Financial Crisis, the City faced substantially decreasing revenues, including a 26% decrease in sales and property taxes. This financial stress resulted in a loss of approximately $2.6 million in FY 2011/12. Severe cost cutting measures were implemented, which included the reduction of staff, from 275 full-time employees in 2008 to 239 full-time employees in 2011 through early retirements and not filling vacant positions. In addition, the costs to provide essential City services to the community continued to increase.

The City predicted that without an increase in sales tax revenues, the City would have a General Fund deficit of approximately $2.7 million in FY 2012/13. To avoid reductions in vital services, the City Council placed Measure P on the June 5, 2012 ballot to temporarily increase the City’s sales tax.

The following was the Measure P language in the ballot measure:
“To provide funding that stays in Pittsburg and cannot be seized by the State, to be used for Public Safety, gang prevention, job creation programs for local residents, to keep the Senior Center open, to maintain other City services, shall the City of Pittsburg enact a temporary, half-cent sales tax for five years, reduced to one-quarter cent for five years, then the increase be terminated, altogether, with citizen’s oversight committee, mandatory audits and consistent community reporting?”
Of the 7,058 votes received, 5,094 voters said “yes” (72.2% approval).

During FY 2015/16, the City projected that without an extension of Measure P, vital City services currently funded would face reductions as Measure P would reduce by 50% in FY 2017/18 and terminate in FY 2022/23. An election to extend Measure P was placed on the June 7, 2016 ballot, referred to as Measure M.

The following was the Measure M language in the ballot measure:
“To provide funding that stays in Pittsburg and cannot be seized by the State, to be used for Public Safety, gang prevention, job creation programs for local residents, Senior Center operations, repair roads, operate youth programs, and maintain other City services, shall the City of Pittsburg extend its current half-cent sales tax through fiscal year 2034-2035, providing $3.6-3.8 million annually, then the increase be terminated, altogether, with citizen’s oversight, mandatory audits and consistent community reporting?” 355
Of the 10,581 votes received, 8,631 voters said “yes” (81.2% approval).

As required by Section 3.08.140 of the Pittsburg Municipal Code, the City Council established the Citizens Oversight Committee (Committee) and charged it with:
• Receiving information from City staff on the receipt of revenues and the expenditures of funds from the measure;
• Providing recommendations to the City Council on the future use of the measure’s revenues;
• Producing an annual report that records the results of its recommendations for expenditure of the revenue generated from the tax; and
• Presenting this report to the City Council at a public meeting, making it part of the public record.

The Base Allocation was established on June 21, 2021 and has remained in place ever since. The Committee makes recommendations to the City Council on the allocation of Measure M Surplus Funds.

On July 7, 2025, the City Council, by Minute Order, accepted the Committee Report and allocated the Measure M Surplus Funds generated in Fiscal Year 2024/25 for use in FY 2025/26. One of the categories to which the City Council allocated funds was Road Repairs for the total amount of $575,627.

SUBCOMMITTEE FINDINGS
During the August 16, 2024 Finance Management Subcommittee (Subcommittee) meeting, the Subcommittee members discussed permanently increasing the allocation to Road Repairs from $750,000 to $1,250,000, an increase of $500,000.

STAFF ANALYSIS
The Department of Public Works has implemented the Pavement Management Plan (Plan), a long-term plan based on best practices and with the goal of raising the City’s Pavement Condition Index (PCI), a numerical index between 0 and 100 used to indicate the general condition of a pavement section. Many municipalities, including Pittsburg, use it to measure the performance of its road infrastructure. A “good” score ranges between 70-100. While the City’s overall PCI score is 60, which is a “fair” score, there are streets that have completely failed, scoring somewhere between 0-25, a “very poor” score. Under the Plan, the City’s strategy is to rehabilitate roads before they fail as repairing failed roads is exponentially more costly than maintaining “fair” and “good” roads. This focus on maintenance enables the City to address more square feet of roads within its limited annual budget. In addition to preservation, the City will continue to pursue additional funding for roads that have already failed. Measure M funds, along with other funds such as the General Fund, SB1/Road Maintenance and Rehabilitation Account (RMRA), and CalRecycle Grants are used to complete various road improvement projects on both local and arterial roads.

Local roads can be defined as those that give access to properties; they are neighborhood roads. Arterial roads like Loveridge Road, Leland Road, and Harbor Street prioritize mobility and facilitate travel between areas. The City’s Plan focuses solely on local roads and divides the City into 10 zones. Repaving, resurfacing, and restriping of Zone 3 was completed November 2024. Zone 4 is currently under construction and is anticipated to be completed in August 2025. Zone 7 work will be performed in FY 2025/26. 356
Public Works has determined that the average annual cost to maintain the current overall PCI is approximately $8,000,000, while the annual cost to increase overall PCI by 5 points is at least $12,000,000. Increasing the Measure M base allocation for Road Repairs to $1,250,000 will help fund the Citywide paving projects, thereby helping to achieve the City Council’s goal of raising the City’s PCI to 65 by 2029.

ATTACHMENTS: Resolution
Report Prepared By: Maria M. Aliotti, Assistant City Manager 357

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:

Increasing the Measure M Base )
Allocation and Increasing the Allocation ) RESOLUTION NO. 25- For Road Repairs Beginning FY 2026/27)
WHEREAS, voters approved a temporary general sales tax measure in 2012 named Measure P, and voted in 2016, to extend the measure to June 30, 2035, now known as Measure M; and
WHEREAS, on June 21, 2021, the City Council established the following allocations of tax measure proceeds for the following categories, which have been adhered to since: a total base allocation of $4,900,000 (the “Base Allocation”) comprised of: Public Safety $2,850,000; Senior Center $425,000; Economic Development $450,000; Youth Programs $425,000; and Road Repairs $750,000; and
WHEREAS, on July 7, 2025, the City Council, by Minute Order, accepted the Citizens Oversight Committee Report and allocated the Measure M Surplus Funds generated in Fiscal Year (FY) 2024/25 for use in FY 2025/26. One of the categories to which the City Council allocated funds was for Road Repairs in the total amount of $575,627, and WHEREAS, City Council expressed support for maintaining a higher allocation for road repairs in future years.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Pittsburg hereby authorizes that starting in FY 2026/27, the annual Measure M base allocation for Road Repairs will be increased from $750,000 to $1,250,000, effectively increasing the total Measure M Base Allocation from $4,900,000 to $5,400,000.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 21st day of July 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Jelani Killings, Mayor
ATTEST:

Alice E. Evenson, City Clerk
358

OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Approving the Terms and Conditions of Employment for International Brotherhood of Teamsters Local 856 for the Period July 1, 2025 through June 30, 2028 MEETING DATE: July 21, 2025

EXECUTIVE SUMMARY
The City of Pittsburg and International Brotherhood of Teamsters Local 856 (Teamsters Local 856) propose terms and conditions of employment for the period of July 1, 2025 through June 30, 2028 (Contract Period).

FISCAL IMPACT
The total net impact to the General Fund in Fiscal Year 2025/26 is approximately $300,000, of which $150,000 is reflected in the adopted budget. The additional cost over the adopted FY 2025/26 budget is approximately $150,000. The costs associated with the terms and conditions for the remaining fiscal years of the Contract Period will be budgeted accordingly in future fiscal years.

RECOMMENDATION
Staff recommend that the City Council adopt the Resolution approving the tentative agreement between the City and Teamsters Local 856 for the Contract Period, authorizing the City Manager to prepare and execute a successor Memorandum of Understanding (MOU), and authorizing corresponding budget appropriations, expenditures, and funding to be incorporated into the budget for Fiscal Years 2025/26, 2026/27, and 2027/28.

BACKGROUND
The City and Teamsters Local 856 started negotiation sessions in April 2025 to develop a successor MOU and after meeting numerous times to discuss proposals surrounding the upcoming contract term, wages and other contract items, have reached a tentative agreement on the terms and conditions of employment that provides for a three-year contract, cost of living adjustments (COLAs) each year, and an amendment to the contract terms regarding holidays, certification pay, shoe allowance, overtime meal reimbursement, 359
overtime pay for Water Plant Operators, shift differential, parity with other groups regarding COLAs and benefits, certification pay, and terms for a classification and compensation study. The current Teamsters Local 856 MOU expired June 30, 2025.

The City and Teamsters Local 856 reached a tentative agreement on July 1, 2025 on terms for the successor MOU.

SUBCOMMITTEE FINDINGS
This item was not reviewed by a subcommittee.

STAFF ANALYSIS
The terms of the agreement between the City and Teamsters Local 856 include the following:
• Effective the first pay period following July 1, 2025, Teamsters Local 856 represented employees will receive a COLA of 2.7%.
• Effective the first pay period following July 1, 2026, Teamsters Local 856 represented employees will receive a COLA minimum of 2% and maximum of 3% based on the December 2025 Consumer Price Index for All Urban Consumers for San Francisco- Oakland-Hayward (CPI-U). The maximum COLA may rise to 4% based on the December 2025 CPI-U and a general fund on-going revenue target of $65.5 Million according to the FY 2026/27 adopted budget.
• Effective the first pay period following July 1, 2027, Teamsters Local 856 represented employees will receive a COLA minimum of 2% and maximum of 3% based on the December 2026 CPI-U. The maximum COLA may rise to 4% based on the December 2026 CPI-U and a general fund on-going revenue target $68 Million according to the FY 2027/28 adopted budget.
“On-Going Revenue” is defined as revenue generated by existing and ongoing programs such as sales tax; transit occupancy tax; property tax; franchise fees; fines and forfeitures; intergovernmental revenue; permits, licenses, and fees; service fees; and other transfer “types” into the General Fund having taken place consistently for the previous three (3) years. On-going revenue excludes any one-time funds that have restrictions in which they may be used and those funds specifically designated for capital projects as well as fees or sales taxes paid in relation to development projects subject to a development agreement, as these projects may require one-time fees in excess of the City’s anticipated ongoing revenue projections. • Floating Holiday: One (1) additional Floating Holiday (for up to 24 hours of Floating Holiday); swap Lincoln’s Birthday with Juneteenth. Washington’s birthday becomes “President’s Day” (third Monday in February). In exchange for acceptance of this comprehensive package with the City’s proposed COLA, bargaining unit members will receive an additional Floating Holiday (for a total of 32 hours of Floating Holiday) for the duration of the Contract Period. The additional 8 hours of Floating Holiday will sunset June 30, 2028, reverting to a total of 24 hours of Floating Holiday. 360
• Employees who are scheduled for Standby duty during City designated holidays (not including floating holidays) will receive banked holidays to be used during the course of the calendar year. Banked holiday hours shall not be paid out upon separation from the City and shall not be incorporated into leave buy-back hours. • The City and Teamsters will continue to develop updated terms to the Standby Program no later than October 30, 2025, which will include: criteria for opting out, requirements for primary standby, volunteer back-up lists, and maximum hours/rest periods.
• Increase overtime meal reimbursement to $20.
• Increase safety boot allowance to $400 annually.
• Increase swing and graveyard shift differential for Water Plant Operators. • Add double-time for overtime on 8th day worked for Water Plant Operators. • Increase primary standby pay to $500; increase secondary standby pay to $450. • Certification Pays:
o Increase total combined certification pay maximum to 10% from 8%; Water Plant Operators will receive a maximum certification pay of 13% o Class A License Incentive Pay: 5% of base pay for Maintenance Worker I o High Line Tree Trimmer Certification: 2% of base pay for Maintenance Worker I, II and Lead when assigned to tree crew
o Pool Operator Certification Pay: 2% of base pay when assigned to Pool for Maintenance Worker I, II and Lead Maintenance Workers
o Water Plant Apprentice Operator:
 Add 2% of base pay for D1
 Add 5% of base pay for D2
o Water Plant Operator:
 Add 3% of base pay for T5
 Continue 5% of base pay for T4
 Add current incentive pay of $300 for T3 to base pay
• Increase vacation accrual cap to 300 hours; remove service achievement accrual limits. Increase citywide vacation buy-back allocation to $225,000 annually; limit to one payout period annually.
• Terms for a classification and compensation study.
• Parity Agreement: If the City reaches an agreement with any other non-sworn bargaining unit that includes COLA or lump sum payments exceeding those agreed to herein during the time period covered by this agreement (and considering any offsetting differences including but not limited to pension or medical cost sharing), the parties will meet and confer over the application of equivalent increases (and offsets) to the Teamsters Local 856 bargaining unit. This provision shall specifically exclude any market-based or internal compaction-related equity increases. 361
Should the City Council approve these terms identified in the comprehensive tentative agreement, and upon ratification by the Teamsters membership, staff will prepare a successor MOU that incorporates the agreed upon changes.

ATTACHMENTS: Exhibit A – Comprehensive Tentative Agreement between the City of Pittsburg and Teamsters Local 856
Resolution
Report Prepared By: Jennifer Brizel, Director of Human Resources 362
Resolution No. 25- Page 1 of 2 July 21, 2025

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:

Approving the Terms and Conditions of )
Employment for International Brotherhood ) RESOLUTION NO. 25- Of Teamsters Local 856 for the Period of )
July 1, 2025 through June 20, 2028 )
WHEREAS, the most recent Memorandum of Understanding (MOU) between the City of Pittsburg and International Brotherhood of Teamsters Local 856 (Teamsters Local 856) expired on June 30, 2025; and
WHEREAS, after meeting numerous times to discuss proposals surrounding the upcoming contract term, wages and other contract concerns, the City and Teamsters Local 856 have reached a tentative agreement on the terms and conditions of employment; and WHEREAS, staff recommends a three-year contract term, cost of living adjustments each year, and amendment to the contract terms regarding holidays, standby program terms and pay, meal reimbursements, safety boot allowance, shift differential and overtime pay for Water Treatment Operators, additional certification pays, parity for cost of living adjustments (COLAs) and benefits, terms for a classification and compensation study, vacation buy-back and an increase to the vacation accrual limit as well as other non-economic items; and WHEREAS, City representatives and the duly appointed representatives of Teamsters Local 856 have met and conferred in accordance with Section 3500 et seq. of the California Government Code; and
WHEREAS, the City and Teamsters Local 856 signed a tentative agreement, attached as Exhibit A to the Staff Report on July 1, 2025; and WHEREAS, upon adoption of this Resolution and ratification by the Teamsters, Local 856 membership, the City Manager and staff will prepare successor MOUs that incorporates the agreed upon terms and conditions.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby approves the tentative agreement between the City and Teamsters Local 856 for the period of July 1, 2025 through June 30, 2028, authorizes the City Manager to prepare and execute a successor MOU consistent with the terms and conditions outlined in the agreement, attached hereto and marked as Exhibit A, and authorizes corresponding budget appropriations, expenditures, and funding to be incorporated into the budget for Fiscal Years 2025/26, 2026/27, and 2027/28.
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Resolution No. 25- Page 2 of 2 July 21, 2025
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 21st day of July 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:
____________________________
Jelani Killings, Mayor
ATTEST:
_________________________
Alice E. Evenson, City Clerk
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1 City of Pittsburg and Teamsters
Successor Agreement Negotiations
Tentative Agreement
July 1, 2025

The parties agree that a total tentative agreement for a successor Memorandum of Understanding (MOU) has been reached on the below items. This total tentative agreement is contingent upon ratification by the bargaining unit and approval by the City Council. All items in the current MOU not identified in thus total tentative agreement shall remain the same.

CITY PROPOSALS
Term and Cost of Living Adjustments
Three (3) year term: July 1, 2025 – June 30, 2028, as follows:

COLA:

Yr 1, 2.7% of base salary;
Yr 2, 2%-3% of base salary based on December 2025 Consumer Price Index for All Urban Consumers (CPI-U) for San Francisco-Oakland-Hayward. Ceiling may rise to 4% based on December 2025 CPI-U and a general fund on-going revenue target of $65.5M, based on the FY 2026/2027 adopted budget.

Yr 3, 2%-3% of base salary based on December 2026 CPI-U. Ceiling may rise to 4% based on December 2026 CPI-U and a general fund on-going revenue target of $68M, based on the FY 2027/2028 adopted budget. “On-Going Revenue” is defined as revenue generated by existing and ongoing programs such as sales tax; transit occupancy tax; property tax; franchise fees; fines and forfeitures; intergovernmental revenue; permits, licenses, and fees; service fees; and other transfer “types” into the General Fund having taken place consistently for the previous three (3) years. On-going revenue excludes any one-time funds that have restrictions in which they may be used and those funds specifically designated for capital projects as well as fees or sales taxes paid in relation to development projects subject to a development agreement, as these projects may require one-time fees in excess of the City’s anticipated ongoing revenue projections.

Holiday Standby:

Employees who are scheduled for Standby duty during City designated holidays (not including floating holidays) will receive banked holidays to be used during the course of the calendar year. Banked holiday hours shall not be paid out upon separation from the City and shall not be incorporated into leave buy-back hours.

Standby Program:

The City and Teamsters will continue to develop updated terms to the Standby Program no later than October 30, 2025, which will include: criteria for opting out, requirements for primary standby, volunteer back-up lists and maximum hours / rest periods.

Overtime Meal Reimbursement:

Increase to $20
Uniform Allowance:

Increase shoe allowance to $400 annually
Shift Differential for Water Plant Operators:

Swing = Increase to $2.50 from $1.75 per hour
Graveyard = Increase to $5.00 from $3.50 per hour
Docusign Envelope ID: 8E9D25A1-CE15-4F4F-8376-9410FFD7B734 365
2 Overtime for Water Plant Operators:

Water Plant Operator double time for 12 hour shifts beyond 7 days; on the 8th day double time; 9th day will revert back to 1.5x pay.

Standby Pay:

Increase Primary Standby Pay to $500 from $300
Increase Secondary Standy Pay to $450 from $250
Certification Pay:

Increase total combined certification pay maximum to 10% from 8%; Water Plant Operators will receive a maximum certification pay of 13%.
• Class A License Incentive Pay: 5% of base pay for Maintenance Worker I • High Line Tree Trimmer Certification: 2% of base pay for Maintenance Worker I, II and Lead when assigned to tree crew
• Pool Operator Certification Pay: 2% of base pay when assigned to Pool for Maintenance Worker I, II and Lead
• Water Plant Apprentice Operator:
+ Add 2% of base pay for D1
+ Add 5% of base pay for D2
• Water Plant Operator:
+ Add 3% of base pay for T5
+ Continue 5% of base pay for T4
+ Add current incentive pay of $300 for T3 to
base pay
Vacation:

Increase vacation accrual to 300 hours from 260
Increase Citywide Vacation Buy-Back allocation to $225K annually; limit to one payout period annually Remove references to COVID in the MOU
Holidays:

One (1) additional Floating Holiday (for up to 24 hours of Floating Holiday); swap Lincoln’s Birthday with Juneteenth. Washington’s birthday becomes “President’s Day (third Monday in February).” In exchange for acceptance of this comprehensive package with the City’s proposed COLA, bargaining unit members will receive an additional Floating Holiday (for a total of 32 hours of Floating Holiday) for the duration of the three-year term. The additional 8 hours of Floating Holiday will sunset June 30, 2028, reverting to a total of 24 hours of Floating Holiday.

Disciplinary Action:

The City and Union through a Joint Labor Management Committee, will revise language on written reprimands with the intent to modify the appeal process.

Work Schedules:

The City Public Works Department and Teamsters will form a Joint Labor Management Committee to develop a 9/80 work schedule policy by January 2026.

Classification and Compensation Study:

The City and Teamsters, Local 856 will form a Joint Labor Management Committee (JLMC) to conduct a benchmark classification and total compensation survey. The City and Union will complete a total compensation salary survey for mutually identified benchmark classifications within the bargaining group before June 30, 2026. The City will develop a plan to address equity adjustments within 5% of total compensation market median.

Docusign Envelope ID: 8E9D25A1-CE15-4F4F-8376-9410FFD7B734 366
3 The classification and total compensation survey will determine potential equity adjustments to be considered by the City Council during the term of the MOU executed between July 1, 2025 – June 30, 2028.

The Total Compensation Survey will include the following agencies for comparison:

• Antioch
• Brentwood
• Concord
• Contra Costa County
• Martinez
• Oakley
• Pittsburg
• Pinole
• Richmond
• San Ramon
• Walnut Creek
• Contra Costa Water District (for Water Plant Operations)

The Total Compensation Survey will be based on the following elements of “total compensation” for PEPRA members, with any known increases effective through July 2026:

• Comparator Agency
• Classification Title
• Top Monthly Salary Step
• Certification Types and Maximum (by job classification) • Deferred Compensation
• PERS (ER/EE) contributions
• Employer Medical (Kaiser Family Rate)
• Total Monthly Compensation

Parity Agreement

If the City reaches an agreement with any other non -sworn bargaining unit that includes COLA or lump sum payments exceeding those agreed to herein during the time period covered by this agreement (and considering any offsetting differences including but not limited to pension or medical cost sharing), the parties will meet and confer over the application of equivalent increases (and offsets) to the Teamsters bargaining unit. This provision shall specifically exclude any market-based or internal compaction-related equity increases.

Teamsters, Local 856 City of Pittsburg

Docusign Envelope ID: 8E9D25A1-CE15-4F4F-8376-9410FFD7B734 7/1/2025
7/3/2025
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OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Authorizing the City Manager to Execute the Second Amendment to the Consulting Services Agreement with Municipal Resource Group, LLC (MRG)
MEETING DATE: July 21, 2025

EXECUTIVE SUMMARY
The City currently has a Consulting Services Agreement (Agreement) with Municipal Resource Group, LLC (MRG) and both parties proposed to amend the Agreement (Second Amendment).

FISCAL IMPACT
The Second Amendment increases the compensation by $75,000 for a total compensation of $150,000. No additional funds are requested beyond what is reflected in Finance’s budget for Contractual and Professional Services for the Fiscal Year 2025/26 adopted budget.

RECOMMENDATION
Staff recommends that City Council adopt the Resolution authorizing the City Manager to execute the Second Amendment to the Agreement.

BACKGROUND
On October 1, 2024, the City engaged MRG, a professional consultant firm to facilitate the City Manager and City Attorney performance evaluation process. The compensation was for a not to exceed the amount of $50,000.

In April 2025, the Agreement was amended (First Amendment), whereby MRG was to provide consultant services to evaluate the City’s Finance Department organizational structure and business processes, as well as provide subject matter expertise regarding industry best practices to support the implementation of a new enterprise resource planning (ERP) system. Under the First Amendment, the total compensation was increased by $25,000 for a total compensation of $75,000.
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SUBCOMMITTEE FINDINGS
This item was not presented to a subcommittee.

STAFF ANALYSIS
The Second Amendment to the agreement will allow MRG consultants to continue analyzing and recommending opportunities for enhancing effectiveness and efficiency of the City’s processes, procedures, and systems related to finance programs and budget management.

MRG consultants will continue to provide advice regarding industry best practices for the implementation of the ERP system as the City transitions to Tyler Munis. MRG will continue to assess staffing requirements and recommend training and development for Finance staff members, as well as serve as a subject matter expert to support the selection of a Finance Director. Approval of the Second Amendment will enable the City to successfully complete the various tasks currently in progress.

ATTACHMENTS: Resolution
Second Amendment to Consulting Services Agreement
Prepared by: Jennifer Brizel, Director of Human Resources 369

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:

Authorizing City Manager to Execute )
Second Amendment to the Consulting ) RESOLUTION NO. 25- Services Agreement with Municipal )
Resource Group, LLC (MRG) )
WHEREAS, the City entered into a Consulting Services (Agreement) with Municipal Resource Group, LLC (MRG) in October 2024 to provide professional consulting services related to executive performance evaluations; and
WHEREAS, the City Manager amended the agreement in April 2025 to include coaching/mentoring, finance program review, budget process development, enterprise resource planning system support and organizational analyses; and WHEREAS, the Agreement set forth a maximum compensation of $75,000, which is within the signing authority of the City Manager pursuant to the Pittsburg Municipal Code; and
WHEREAS, in April 2025, the Agreement was amended (First Amendment), whereby MRG was to provide consultant services to evaluate the City’s Finance Department organizational structure and business processes, as well as provide subject matter expertise regarding industry best practices to support the implementation of a new enterprise resource planning (ERP) system. Under the First Amendment, the total compensation was increased by $25,000 for a total compensation of $75,000; and
WHEREAS, additional support is needed to successfully complete the various tasks currently in progress. The City Manager seeks to amend the Agreement (Second Amendment) to add $75,000 to the Agreement, increasing the total compensation to $150,000 through the term ending June 30, 2026.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby authorizes the City Manager to execute the Second Amendment and adds $75,000 to the existing Agreement, increasing the total compensation to $150,000.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 21st day of July 2025, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:
_____________________________
Jelani Killings, Mayor
ATTEST:
______________________________
Alice E. Evenson, City Clerk
370

SECOND AMENDMENT TO

CONSULTING SERVICES AGREEMENT BETWEEN

CITY OF PITTSBURG AND

MUNICIPAL RESOURCE GROUP, LLC (MRG)
THIS Second Amendment to the Principal Agreement made and entered into on October 1, 2024, hereafter referred to as Agreement, between MRG, a California limited liability company, therein referred to as Consultant, and the City of Pittsburg, a municipal corporation, therein referred to as City, is made and entered into on this 21 st day of July, 2025.

WHEREAS, In 2024, the parties entered into the Agreement to facilitate the performance evaluation of the City Manager and City Attorney; and
WHEREAS, the Agreement had a maximum compensation of $50,000; and WHEREAS, the parties amended the agreement in April 2025 to add to the scope of consulting services and increase the compensation amount by $25,000, for a total compensation of $75,000; and
WHEREAS, MRG continues to provide support for the enterprise resource planning (ERP) system integration as well as analyze and recommend processes and procedures for operational efficiency within the City’s Finance Department.

NOW, THEREFORE, Consultant and City do mutually agree as follows:

1. Compensation. The first paragraph of Section 2 of the Agreement is hereby amended to read as follows:

City hereby agrees to pay Consultant a sum not to exceed One Hundred and Fifty Thousand Dollars ($150,000) as set forth in Exhibit B for the period of July 1, 2025 through June 30, 2026, attached hereto and incorporated herein for services to be performed and reimbursable expenses incurred under this Agreement. This dollar amount is not a guarantee that the City will pay that full amount to the Consultant but is merely a limit of potential City expenditures under this Agreement.

2. Exhibit A Scope of Services. Exhibit A is hereby amended to include Attachment 1 of this Second Amendment.

3. Exhibit B Compensation Schedule. Exhibit B is hereby amended to include Attachment 2 of this Second Amendment.

4. Integration. This Second Amendment contains the entire agreement between the parties with respect to its subject matter and supersedes whatever oral or written understanding they may have had prior to the execution of this Second Amendment. This Second Amendment shall not be amended or modified except by a written agreement executed by each of the parties. Except as specifically revised herein, all terms and 371
conditions of the Agreement shall remain in full force and effect, and Consultant shall perform all duties, obligations and conditions required under the Agreement.

5. Inconsistencies. In the event of any conflict or inconsistency between the provisions of this Second Amendment and the Agreement, the provisions of this Second Amendment shall control in all respects.

6. Ambiguities. The parties have each carefully reviewed this Second Amendment and have agreed to each term of this Second Amendment. No ambiguity shall be presumed to
be construed against either party.

7. Counterparts. This Second Amendment may be executed by the parties in one or more counterparts all of which collectively shall constitute one document and agreement.

8. Authority. The person signing this Second Amendment for Consultant hereby represents and warrants that he or she is fully authorized to sign this Second Amendment on behalf of Consultant.

IN WITNESS WHEREOF, the parties have entered into this Second Amendment on the day and year first hereinabove appearing.

For City of Pittsburg: Consultant:
_____________________________ ________________________
Approved as to Form:
______________________________
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EXHIBIT A

SCOPE OF SERVICES
MRG shall perform the following:
 Analyze and recommend opportunities for enhancing effectiveness and efficiency of the City’s processes, procedures and systems design related to finance programs and budget management.
 Provide advice regarding industry best practices for the implementation of the new Enterprise Resource Planning (ERP) system transition to Tyler Munis.  Recommend training and development for Finance staff members.  Serve as a subject matter expert during the recruitment and selection of a new Finance Director by supporting the recruiter with interview question development as well as serve as a technical expert for interviews.

MRG personnel will represent themselves as MRG affiliates, utilizing separate email addresses, identifying themselves as consultants from MRG. MRG will only use Pittsburg systems and equipment if required for access to essential data or information, with Pittsburg’s authorization. Pittsburg may provide workspace, such as conference rooms or office, if onsite support is needed.

Personnel matters such as hiring, discipline, and evaluations, as well as contract execution or obligations binding Pittsburg, fall outside the scope of this engagement and remain a Pittsburg responsibility. MRG consultants will use their own equipment, cell phones, computers, etc.

Attachment 1
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EXHIBIT B

COMPENSATION SCHEDULE

COMPENSATION SCHEDULE
Professional Hourly Rate: $260
Expense Rate:

Mileage (per mile) Current Federal Standard
Travel and other direct cost Actual cost based on preapproval reimbursement
Field Equipment and supplies Actual cost reimbursement Actual cost based on
preapproval
Terms and Conditions:

Invoicing: Due upon receipt – Submitted electronically
Attachment 2
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