2026 Side Letter of Agreement
City of Pleasant Hill and Professional and Confidential Employees Association Amending Article XIV of the MOU
Performance Evaluations/Bonus Awards
I. Parties
The Parties to this Side Letter of Agreement (herein after “Side Letter”) are City of Pleasant Hill (hereinafter referred to as the “City”) and Professional and Confidential Employees Association (hereinafter referred to as “PACE”).
II. Background
The Parties are the signatories to a 2023-2026 Memorandum of Understanding (hereinafter referred to as the “MOU”) setting forth terms and conditions of employment for certain City employees within PACE.
The parties hereby agree that Article XIV of the MOU is amended as follows:
III. MOU Amendments
A. For Purposes of the MOU amendments set forth below, language that is overstruck (e.g. overstruck) will be omitted from the MOU. Language that is italicized and boldfaced will be added to the MOU as indicated. The existing MOU will, in all other respects, remain in effect without change through the term specified.
B. Section XIV is amended as follows:
ARTICLE XIV
PERFORMANCE EVALUATIONS/BONUS AWARDS
A. Performance Evaluations. The City will continue to use an annual performance evaluation. Performance evaluations will be made once a year during the month of January of each calendar year.
All performance evaluations shall be signed by the employee indicating knowledge of the evaluation and that said evaluation is being placed in the employee’s personnel file.
If an employee receives an evaluation where five of the ten categories are rated at the lowest possible rating, If an employee receives an evaluation of “below standard” on six (6) of the twelve (12) categories, they may be reduced in pay up to 7% for a one-year period upon recommendation of the Department Head and approval of the City Manager.
B. Bonus Awards. Each year, employees who meet the following threshold eligibility requirements may be considered for a bonus:
1. The employee must be at the top of his/her salary range; and
2. The employee must receive a rating of either “exceptional” or “very good” in at least half of the rating categories in his/her performance evaluation.
2. The employee must receive the highest possible rating in at least of the rating categories in his/her performance evaluation.
2026 Side Letter of Agreement
City of Pleasant Hill and Professional and Confidential Employees Association Amending Article XIV of the MOU
Performance Evaluations/Bonus Awards
Meeting these threshold eligibility requirements renders the employee eligible to be considered for a bonus. It does not guarantee that a bonus will be awarded.
Where an employee meets the threshold eligibility requirements, his/her immediate supervisor may recommend that the employee be awarded a bonus. The employee’s Department Head must approve the recommendation. If the Department Head approves the recommendation, he/she will forward it to the Personnel Officer, who will confirm that the employee is in fact eligible for consideration for a bonus. The Personnel Officer will then forward the recommendation to the City Manager. The City Manager shall have discretion to approve or disapprove the bonus recommendation. If the City Manager approves, he/she shall also determine the amount of the bonus, which shall not exceed a maximum of 7% (seven percent) of the employee’s base salary for that evaluation year.
If the employee receives a bonus award, he/she may elect to have the bonus paid either as a lump sum contribution to his/her 457 plan or as a lump sum cash award paid directly to him/her.
The bonus does not become a part of the employee’s salary. After payment (whether as a contribution to the employee’s 457 plan or as a cash payment directly to the employee), the employee receives no further payment under his/her bonus award for that evaluation year. Employees may receive bonus awards more than once during their employment with the City, provided all the requirements of this section are met.
IV. General Provisions
A. This Side Letter of Agreement will take effect February 3, 2026, upon approval and adoption by the City Council.
B. The written terms herein embody the entire Side Letter of Agreement between the Parties.
In witness hereof, this Side Letter of Agreement was approved and adopted by a vote of the Pleasant Hill City Council on this ______ day of _____________, 2026.
FOR CITY OF PLEASANT HILL: FOR PROFESSIONAL AND CONFIDENTIAL EMPLOYEES’ ASSOCIATION:
__________________________ ____________________________________ Zac Shess Jeffrey Finn
Mayor PACE President
__________________________ ____________________________________ Ethan Bindernagel Shannon DeFroscia
City Manager PACE Vice-President
2026 Side Letter of Agreement
City of Pleasant Hill and Professional and Confidential Employees Association Amending Article XIV of the MOU
Performance Evaluations/Bonus Awards
____________________________ ______________________________ Ericka R. Mitchell Ross Yangwas
Chief Human Resources Officer Treasurer
APPROVED AS TO FORM:
____________________________
Janet Coleson, City Attorney