Santa Cruz City Council
June 9, 2026

20252 - 20285

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND FIRE MANAGEMENT ASSOCIATION

OF THE CITY OF SANTA CRUZ
SECTION 1.00 – TERM
The term of this Memorandum of Understanding shall commence the pay period beginning October 11, 20252, and shall expire on the pay period ending October June 3010, 20285.

SECTION 2.00 – PREAMBLE
This Memorandum of Understanding is entered into by the City of Santa Cruz (hereinafter referred to as the City) and the Fire Management Association of the City of Santa Cruz (hereinafter referred to as the Association). Employee defined for the purpose of this Memorandum of Understanding shall mean a regular employee assigned to the classification of Fire Battalion Chief, and Fire Division Chief,. This Memorandum of Understanding is subject to Sections 3500-3510 of the Government Code of the State of California, the City of Santa Cruz Municipal Code and the Personnel Rules and Regulations for the City of Santa Cruz.

SECTION 3.00 – NO ABROGATION OF RIGHTS
The parties acknowledge that City responsibilities and rights as indicated in current Article 1, Section 1, (Appendix A) of the City Personnel Rules and Regulations and all applicable State or Municipal laws are neither abrogated nor made subject to the meet and confer process by adoption of this Memorandum of Understanding.

It is agreed that except as specifically delegated, granted, or modified by this Memorandum of Understanding, all of the rights, power and authority the City had prior to the signing of this Memorandum of Understanding, are retained by the City and remain the exclusive right of the City without limitation. Furthermore, these retained rights are not subject to any grievance or impasse procedure.

SECTION 4.00 – EMPLOYEE RIGHTS
The Association and the City acknowledge that although the Association is the recognized bargaining representative, the rights of employees under this Memorandum of Understanding, State law, City Personnel Rules and Regulations and the City Charter are neither abrogated nor diminished by the adoption of this Memorandum of Understanding.

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SECTION 5.00 – RECOGNITION
Pursuant to the Meyer-Milias-Brown Act and the City’s Personnel Rules and Regulations, the City has certified the Association as the recognized employee organization of the representation unit consisting of all full-time Fire Battalion Chiefs, and Fire Division Chiefs. This unit shall be titled the Fire Management Association Unit.

5.01 PAYROLL DEDUCTIONS
The City shall deduct Association membership dues and any other mutually agreed-upon, payroll deductions, to the extent permitted by law, from the monthly pay of each member employee. The Association will provide the City with information regarding the amount of dues deductions and the list of Association member employees who have affirmatively consented to or authorized dues deductions.

The City shall remit the deducted dues and any other mutually agreed payroll deduction, to the extent permitted by law, to the Association as soon as possible after the deduction.

The City agrees to direct each member employee to the Association with regard to any questions or concerns related to membership dues or any other mutually agreed payroll deduction, to the extent permitted by law.

The Association is responsible for providing the City with timely information regarding changes to member employees’ dues and any other lawful Association-related payroll deduction.

5.02 ASSOCIATION’S CERTIFICATION
The City shall make payroll deductions in reliance on the Association’s certification certifying that the Association has and will maintain an authorization, signed by each member employee who affirmatively consents to pay Association membership dues.

Similarly, The City shall only cancel or modify any membership dues or any other mutually agreed payroll deduction, to the extent permitted by law, for any member employees in reliance on the information provided by the Association.

The City shall not request the Association to provide a copy of any member employees’ authorization unless a dispute arises about the existence or terms of the authorization.

5.03 INDEMNIFICATION
The Association shall indemnify, defend, protect and hold harmless the City and its elected and appointed officials, officers, employees, officers and agents (collectively hereafter the “Indemnitees”) from and against any and all claims, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, costs and expenses (including, but not limited to, reasonable attorneys’ fees and court costs) arising from the application of any provisions under Sections 5.01 and 5.02, including, but not limited to, any claims made by any member employees for the membership dues deductions the City made in reliance on the Association’s certification,

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and any claims made by any member employees for any deduction cancellation or modification the City made in reliance on the information provided by the Association.

In the event any such action or proceeding is brought against the City by reason of any such claim, the Association, upon notice from the City, covenants to defend such action or proceeding by counsel reasonably satisfactory to the City. Further, the Association agrees to indemnify and hold harmless the Indemnitees for any loss or damage arising from the Association’s actions or inactions under Sections 5.01 and 5.02.

SECTION 6.00 – JOB ACTIONS
The Association recognizes the Santa Cruz Municipal Code and agrees not to permit, authorize or in any other manner allow its members or those supervised to strike, slowdown, sick-in or engage in any work stoppage or other legal or illegal work or job action.

SECTION 7.00 – NO DISCRIMINATION/RESPECTFUL WORKPLACE

CONDUCT
The City and the Association agree to adhere to the City Council policies pertaining to equal employment opportunity, and the prevention of discrimination, harassment, and disrespectful workplace conduct as listed in Exhibits A, B, and C as well as applicable federal and state discrimination laws.

SECTION 8.00 – SAFETY
The City intends to meet its obligation under the California Occupational Safety and Health Act and shall adopt and use safeguards, devices and practices reasonably adequate to render such employment safe.

The Association will cooperate with the City by requiring employees under its control to work safely and, further, the Association recognizes its obligation as management to support the City’s effort to prevent injuries.

SECTION 9.00 – NOTIFICATION TO ASSOCIATION
Except in cases of bona fide emergency, the Association shall be given seven workday’s advance written notification of any ordinance, rule, resolution or regulation directly relating to matters within the scope of representation proposed to be adopted by the City Council or City Administration and shall be given the opportunity to meet with the City representative prior to its adoption.

SECTION 10.00 – WORK SCHEDULE
Work schedules utilized in the Fire Management Unit are as follows:

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A. Employees assigned to a 56-hour/week schedule shall typically work hours corresponding to the Fire Operations shift schedule. Employees working shifts shall not be released from duty until they are relieved by the next shift supervisor, unless otherwise directed by the Fire Chief or their representative.

B. The work week for employees assigned to a 40-hour/week schedule shall typically consist of four or five consecutive days totaling 40 hours.

The Fire Chief shall assign starting and quitting times to these employees to meet operational needs. Affected employees will be notified five (5) working days in advance of changes in work schedules. This shall not preclude the City from effecting schedule changes due to operational needs, overtime or emergency work. 40-hour employees may request to work a 9/80 or 4/10 schedule.

10.01 BACK-UP DUTY CHIEF ASSIGNMENT
Back-up Duty Chief assignments will be made in accordance with the Santa Cruz Fire Department Police and Procedure Manual Article 6-3 (Back-Up Duty Chief Assignment).

Back-up Duty Chief assignments will be covered with no stipend or other additional compensation for coverage unless activated as emergency call-back.

SECTION 11.00 – PERSONNEL ACTION

11.01 PERFORMANCE EVALUATIONS
It is compulsory that all regular employees receive an annual written performance evaluation from their supervisor. All employees serving their twelve (12)-month probationary period will be evaluated at six (6) months and then annually on their merit review date.

Evaluations are intended to be a summary of the employee’s performance over the course of the evaluation period. Evaluations are also to be used as a tool to motivate the employee to work at their highest capacity and to communicate and document the employee’s level of performance. To this end, the supervisor and the employee will meet and discuss work responsibilities, job standards and objectives, review progress and plan for the employee’s future development prior to the evaluation being placed in the employee’s personnel file. Disputes regarding performance reviews shall be resolved by the Fire Chief and disputes shall not be subject to the grievance process.

11.02 PROBATION

11.02.01 Probationary Period
All original, promotional and re-hire appointments shall be subject to a probationary period of twelve (12) months from date of hire or promotion. Any time spent by an employee on unpaid status shall not be counted as qualifying service toward completion of the probationary period.

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11.02.02 Objective of Probationary Period
The probationary period shall be regarded as part of the selection process and shall be utilized for training the new employee on work assignments and standards, and observing and evaluating the employee’s performance.

11.02.03 Rejection of Probationary Employee
During the probation period, an employee may be rejected at any time by the appointing authority without the right of appeal. Notification of rejection shall be served to the probationary employee in writing. Any promoted employee who is rejected during the probationary period shall be reinstated to the position from which promotion occurred; unless the rejection is due to discharge in which case no reinstatement shall occur.

11.02.04 Extension of Probation
All efforts will be made to sufficiently evaluate the probationary employee during the assigned period. An extension of the probationary period may, however, be recommended by the appointing authority when good cause exists. Such extensions shall be for a specific period of time not to exceed three (3) months.

SECTION 12.00 – PAY RATES AND PRACTICES

12.01 SALARY STEPS
Each classification in the unit shall be assigned a salary range that increases by six percent (6%) between steps.

12.01.01 Salary Rates Upon Appointment
New employees shall be hired at the first step of the classification’s salary range unless a higher starting step is recommended by the Fire Chief based on the employee’s advanced qualifications for the position and such recommendation is approved by the Chief People Officer (Director of Human Resources) and City Manager.

Promoted employees shall receive a minimum six percent (6%) increase. If such increase does not result in them being placed at least at the first step of the new classification’s salary range, they will be placed at the first step of the new classification’s salary range. If such increase results in them being placed within the salary range of the new classification but between existing steps, they will be placed at the next higher step in the new range.

12.01.02 Advancement within the Range

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A. Advancement within a classification’s salary range shall normally be granted on the employee’s scheduled merit review date. Such advancements shall be based solely on meritorious job performance as documented by a satisfactory performance evaluation and successful completion of department required training standards.

B. Employees are eligible for their first merit increase at the end of the first six (6) months of their twelve (12) month probation. After successful completion of the full probation, the employee shall be eligible for subsequent merit increases after each full year on paid status from the last merit review date, continuing until the top of the salary range is attained.

C. Merit increases shall normally be from one pay step to the next higher pay step. Increases of greater than one (1) step may, however, be recommended by the Fire Chief when exceptional performance has been demonstrated by the employee. Such step increases must be approved by the Chief People Officer (Human Resources Director).

D. A merit increase may be denied by the Fire Chief when an employee’s job performance falls below the acceptable work standards for the duties assigned. The Fire Chief may, in such a case, recommend that the employee’s work performance be reviewed again at a specific time before the next review date. If a merit increase is granted at that time, the employee’s original review date shall not change and they shall be eligible for the next merit increase after one (1) year on a paid status from the original review date.

E. An employee’s scheduled merit review date shall be adjusted for any time spent by the employee on unpaid status.

F. Upon receipt of a satisfactory annual evaluation, the effective date for a merit increase shall be the first day of the pay period which includes the employee’s merit review date.

12.02 WORKING OUT OF CLASSIFICATION
The term “working out of classification” is defined as a management authorized, full-time assignment on a temporary basis of an employee in a lower classification to a budgeted higher classification. Assignments will only be made to qualified employees assuming a significant number of duties of the higher classified position. Pay for “working out of classification” shall be as follows:

A. Employees appointed to fill vacant positions will receive acting pay beginning the first day of the assignment.

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B. Employees appointed to a position for vacation, sick leave or leave of absence coverage will receive acting pay beginning on the first work day of the appointment.

C. Acting pay will not be less than 5%.

In accordance with the Public Employees’ Pension Reform Act (PEPRA), working out of classification pay is not pensionable compensation for employees who are “New Members” of CalPERS, as defined by California Government Code Section 7522.04(f).

12.03 SALARY
Effective the pay period that begins on October 11, 20252, or the pay period when Council approves the successor MOU in open session, whichever is later, the salary for all bargaining unit members shall be salaries for represented classifications will be increased by an additional three two and one- quarter percent (23.25%).

Effective the pay period that begins on September July 430, 20263, the salary for all bargaining unit members shall be represented classifications will be increased by an additional three two and one- quarter percent (2.253.00%).

Effective September 28, 2024, the salary for represented classifications will be increased by five percent (5.0%).

Effective the pay period that begins on October 1, 2022July 3, 2027, the salary for all bargaining unit members shall be the Division Chief classification will be increased by an additional two and one- quarter percent (2.250%).

12.04 CALPERS

12.04.01 Employees Hired on or Before September 2, 2011 (Tier I) This section 12.04.01 shall apply to employees hired on or before September 2, 2011, who are contributing members of CalPERS.

A. Final Compensation Based on the Single Highest Year
For purposes of determining a retirement benefit, final compensation for employees covered by this section 12.04.01 shall be based on the single highest year, defined by CalPERS as any consecutive one-year period with the highest average pay rate and special compensation.

B. 3.0% @ 50 Pension Formula
The 3.0% @ 50 pension formula shall be available to all employees covered by this section 12.04.01 who are contributing members of CalPERS. Additionally, the City provides the PreRetirement Optional Settlement 2W Death Benefit to employees

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covered by this section 12.04.01.

C. Required Employee Contribution
Members covered by this section 12.04.01 will contribute the employee contribution amount established by CalPERS for the

3.0% @ 50 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning August 15, 2015, members covered by this section 12.04.01 will contribute an additional 2.0% (total

11.00%).

Effective January 1, 2018, employees will contribute an additional 1% towards PERS for a total of 12%. (Total amount as of the date of the signing of this MOU)

12.04.02 Employees Hired On or After September 3, 2011 (Tier II) This section 12.04.02 shall apply to employees hired on or after September 3, 2011, and prior to January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this section 12.04.02 shall be based on the employee’s highest three year average, defined by CalPERS as any consecutive three-year period with the highest average pay rate and special compensation.

B. 3.0% @ 55 Pension Formula
The 3.0% @ 55 pension formula shall be available to all employees covered by this section 12.04.02 who are contributing members of CalPERS. Additionally, the City provides the PreRetirement Optional Settlement 2W Death Benefit to employees covered by this section 12.04.02.

C. Required Employee Contribution
Members covered by this section 12.04.02 will contribute the employee contribution amount established by CalPERS for the

3.0% @ 55 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning August 15, 2015 members covered by this section 12.04.02 will contribute an additional 2.0% (total

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11.00%).

Effective January 1, 2018, employees will contribute an additional 1% towards PERS for a total of 12%.

12.04.03 Employees Hired On or After January 1, 2013 (Tier III) This section 12.04.03 shall apply to employees hired on or after January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this section 12.04.03 shall be based on the employee’s highest three year average defined by CalPERS as any consecutive three-year period with the highest average pay rate and special compensation.

B. 2.7% @ 57 Pension Formula
The 2.7% @ 57 pension formula shall be available to all employees covered by this section 12.04.03 who are contributing new members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to
employees covered by this section 12.04.03.

Employees covered by this section 12.04.03 who are classic members as defined by CalPERS may be eligible for a different pension formula.

C. Required Employee Contribution
Members covered by this section 12.04.03 will contribute the employee contribution amount established by CalPERS for their pension formula. The required contribution amount for the 2.7% @ 57 was 12.25% as of the date of this MOU.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning August 15, 2015 members covered by this section 12.04.03 will contribute an additional 2.0% (total 14.25% as of the date of the signing of this MOU).

Effective January 1, 2018, employees will contribute an additional 1% towards PERS for a total of 15.25%.

12.04.04 Retirement, All Employees
The City will maintain the IRS 414(h)(2) provision allowing employees to defer State and Federal income taxes on their CalPERS contributions.

The City’s contract with CalPERS includes the service credit for unused sick leave (Section 20965).

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12.05 OPERATIONAL COMPENSATION/EMERGENCY CALLBACK
Operational Compensation – Battalion Chief’s Absence
Effective the pay period that begins July 4, 2026, iIf a Battalion Chief’s absence creates or contributes to overtime as a result of minimum staffing requirements, a Battalion Chief may be offered to work the absence or vacancy and be paid at one and one-half (1 ½) times the employee’s current base rate of pay for actual hours worked outside the employee’s regular schedule at a pay rate which is

1.45% above the employee’s current base rate of pay. Battalion Chiefs and Division Chiefs may choose, in lieu of operational compensation payment, to have operational compensation hours worked converted to a compensatory time bank at the rate of one and one-half (1 ½) times the actual hours worked outside the employee’s regular scheduleat which is 1.45% above the employee’s current base rate of pay. This provision is administered in accordance with Policy and Procedures Manual Article 5-26.

Emergency Call Back
In addition, Battalion Chiefs or Division Chiefs required to return to work for emergency call duty as determined by the Fire Chief, will be paid time and onehalf of the employee’s current base rate of pay for actual hours worked outside the employee’s regular schedule. Battalion Chiefs and Division Chiefs may choose, in lieu of operational compensation payment, to have operational compensation hours worked converted to a compensatory time bank at an equal rate of time and one-half pay.

Declared Emergencies
Battalion Chiefs and Division Chiefs will also be paid time and one-half of their current base rate of pay for actual hours worked outside the employee’s regular schedule. Pay iif assigned to work for declared disaster team or to provide coverage for Battalion Chiefs required to perform such duty. Payment of time and one-half will only be for those incidents which the City receives reimbursement from OES, FEMA, or other appropriate State or Federal agencies Battalion Chiefs and Division Chiefs may choose, in lieu of operational compensation payment, to have operational compensation hours worked converted to a compensatory time bank at an equal rate of time and one-half pay.

Battalion Chiefs and Division Chiefs are designated as FLSA exempt and this compensation will not be considered PERS income, as it is considered additional duties.

Employees compensatory time bank shall not exceed 120 hours. The use of compensatory time off shall be in accordance with Fire department policy 4-13 Vacation Selection Process For Shift Personnel. Employees must receive payment for all accrued and unused compensatory time at the time of employment separation or at the end of each calendar year.

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12.06 LONGEVITY
Upon completion of ten (10) years of continuous regular service employees shall receive a 2½% longevity pay increase.

Upon completion of fifteen (15) years of continuous regular service employees shall receive an additional 2% longevity pay increase.

Upon completion of seventeen (17) years of continuous regular service employees shall receive an additional 2% longevity pay increase.

Upon completion of twenty (20) years of continuous regular service employees shall receive an additional 2% longevity pay increase.

Upon completion of twenty-two (22) years of continuous regular service employees shall receive an additional 2% longevity pay increase.

Upon completion of twenty-five (25) years of continuous regular service, employees shall receive an additional 2% longevity pay increase.

12.07 ON-CALL FIRE INVESTIGATOR
On-call Fire Investigator assignments will be made in accordance with Santa Cruz Fire Department Policy and Procedure Manual Article 2, #B2-4 (On-Call Fire Investigator Assignment).

Compensation for on-call Fire Investigator assignments is as follows:

A. For every weekday covered, a stipend equal to 1 ½ hours of “C” step Deputy Fire Marshal pay shall be provided.

B. For every weekend day (24-hour period) covered, a stipend equal to 2 hours of “C” step Deputy Fire Marshal pay shall be provided.

C. For every City designated 8-hour holiday (24-hour period) covered, a stipend equal to 4 hours of “C” step Deputy Fire Marshal pay shall be provided and 4 additional hours will be credited to the employee’s holiday bank.

D. For every City designated 4-hour holiday (19-hour period) covered, a stipend equal to 2 hours of “C” step Deputy Fire Marshal pay shall be provided and 2 additional hours will be credited to the employee’s holiday bank.

E. When an on-call Fire Investigator is dispatched or activated, the pay rate will revert to 1 ½ the employee’s base pay rate as “emergency call back”.

12.08 EDUCATIONAL INCENTIVE

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Employees will be eligible for the following educational incentives (the maximum incentive available is four percent (4%):

A. AA/AS degree or 60 units and actively pursuing job related college work and/or bachelors, or AA/AS degree program – two percent (2%) of base salary.

B. BA/BS or Masters degree or State Chief Officer or Fire Marshal certification – four percent (4%) of base salary.

12.09 EMERGENCY MEDICAL TECHNICIAN (EMT)INCENTIVE
Each employee who is certified in the County of Santa Cruz as an Emergency Medical Technician-D shall be compensated an additional two percent (2%) of the employee’s base salary.

12.10 HAZARDOUS MATERIALS (HAZ-MAT)TECHNICIAN INCENTIVE Employees designated as Haz-Mat technicians in accordance with departmental policies and procedures will receive an incentive equal to two percent (2%) of the employee’s base salary.

12.11 SPECIAL EVENT COMPENSATION
A special event assignment is defined as an assignment for which the City is reimbursed by a event’s sponsor, through the Finance Department, for fire services. If a unit employee staffs a special event that results in hours being worked in addition to the employee’s 40-hour work week, the employee will be paid at time and one-half pay for hours worked while performing such duty.

Payment of time and one-half special event pay will only be for those special events which are so designated by the Fire Chief and not co-sponsored by the City. Because unit employees are designated as FLSA exempt, this compensation will not be considered PERS income, as it is considered compensation for additional duties.

12.12 BILINGUAL PAY
Effective October 1, 2022, the City shall provide payment of two percent (2.0%) of base salary when the City certifies an employee as qualified and the position requires the use of bilingual language skills.

SECTION 13.00 – HOLIDAYS

13.01 56-HOUR PER WEEK EMPLOYEES
Employees shall accrue holiday pay up to a maximum of two hundred and eightyeight (28800) hours per fiscal year, at a rate of 11.08 hours per pay period. of holiday pay and shall be credited with two hundred (200) hours on the first day

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of the pay period that includes July 1 of each year. This amount will be prorated for new hires.

Pursuant to City directives, employees may use accrued holiday leave.

Alternately, holidays may be paid at a straight time rate. If paid, a separate check shall be issued for 96 hours (less any hours used to date in the fiscal year) on the first pay date in December and again for the remaining balance of hours on the second pay date in June.

Upon separation, employees shall receive the value of their unused accrued holiday leave. Accumulation of holidays shall not exceed 288192 hours.

13.02 40-HOUR PER WEEK EMPLOYEES
Employees shall accrue holiday pay up to a maximum of ninety-six (96) hours per fiscal year, at a rate of 3.69 hours per pay period. of holiday pay and shall be credited with an hour bank on the first day of the pay period that includes July 1 of each year. During fiscal years when Christmas and New Year’s days are on or between Tuesday through Saturday, employees shall be credited with ninetysix (96) hours. In fiscal years where Christmas and New Year’s days are on a Sunday or Monday, employees shall be credited with eighty-eight (88) hours.

This amount will be prorated for new hires.

Pursuant to City directives, employees may use accrued holiday leave.

Alternately, all unused holidays may be paid at a straight time rate on the second pay date in June.

Upon separation, employees shall receive the value of their unused accrued holiday leave. Accumulation of holidays shall not exceed 9688 hours.

In addition to the above holidays, 40-hour per week employees shall accrue up to twenty-four (24) hours of floating holidays per fiscal year. Floating Holiday accrual shall be on a monthly basis. Full-time employees shall accrue floating holiday at the rate of two (2) hours per month. Part-time employees shall accrue floating holiday on a pro-rated basis, given the ratio of their budgeted work schedule to full time (e.g., all employees working in a 20 hour/week position shall receive one (1) hour of floating holiday each month).

Floating Holidays may only be taken with prior approval.

Accumulation of Floating Holidays shall not exceed twenty-four (24) hours. Upon separation, the employees shall receive their unused accrued Floating Holiday.

SECTION 14.00 – SICK LEAVE

14.01 DEFINITION
The purpose of this section is to provide paid leave time to be used by employees in the event of a non-work related illness, injury, preventative healthcare, care of

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an existing health condition, as victims of domestic violence, sexual assault or stalking, or the medical necessity of others as specified below. Sick leave shall not be construed to be a privilege which an employee may use at their discretion but shall be allowed only in case of necessity herein set forth.

14.02 ACCRUAL

14.02.01 24-Hour Shift Personnel
All 24-hour shift personnel shall accrue sick leave at the rate of 162 hours for each full month of continuous regular service in which the employee has worked or has been in authorized leave of absence with pay.

14.02.02 40-Hours per Week Personnel
All 40-hour week shall accrue such leave at the rate of 8 hours for each full month of continuous regular service in which the employee has worked or has been in authorized leave of absence with pay.

14.02.03 Eligibility
Employees must be on paid status at least 50% of the working hours of a pay period to earn sick leave for that period.

14.03 LIMITATIONS
A. To receive compensation while absent on sick leave, the employee shall notify their immediate supervisor in the manner provided in the departmental rules and regulations.

B. The Fire Chief may require an employee to submit verification of an illness or injury from a licensed medical practitioner prior to any use of sick leave being authorized.

In cases of chronic absenteeism or medical work restrictions, the Chief People Officer (Director of Human Resources) may have an employee examined by a city selected physician. The City shall pay the cost of any such medical exam.

C. Up to 72 hours for 24-hour shift personnel and 48 hours for 40-hour week of accrued sick leave per fiscal year may be used when the employee's personal attendance is required to care for a family member who is ill or injured, or for preventive care, care of an existing health condition, or if they are a victim of domestic violence, sexual assault, or stalking. For the purposes of this provision, family is defined as a spouse, registered domestic partner, son, daughter, parent, sibling, step-parent, grandparent or grandchild or other close relation residing in the employee’s household.

The seventy-two (72) or forty- eight (48) hour limitation may be extended by the City Manager with good cause.

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D. A 40-hours per week employee may be granted up to 8 hours per calendar year of personal business leave chargeable to sick leave. The scheduling of such leave is subject to the approval of the Fire Chief.

14.04 SICK LEAVE INCENTIVE PROGRAM
City and Union agree to meet at a future date during the contract to address the Constructive Receipt issue in a separate proposal.

14.04.01 40- Hour and 56-Hour Per Week Employees
Earned sick leave hours may not be converted to cash and may be convcerted to CalPERS service credit upon retirement with the City of Santa Cruz. On an annual basis, 40-hour week employees who have accumulated more than 400 hours of sick leave, will be asked to choose among the following options, which will be paid out on the last pay date in June:

1. To receive a cash pay-off of all hours in excess of 400 at the rate of 33% of their current rate of pay.

2. To “bank all hours in excess of 400. Banked hours may not later be converted to cash and will be used as sick leave only when all other sick leave is exhausted.

14.04.02 56-Hour per Week EmployeesVacation Conversion
A. Maximum Sick Leave Accrual
As of the last pay date in June of each year, employees who have accumulated sick leave in excess of the minimum amounts listed below may take vacation pay or receive a cash payment for the amount of excess sick leave; or, employees may elect to accumulate sick leave up to the maximum limits at which point they must take the excess as cash or time off. The amount of vacation pay or cash payment will be made based on 25% of the time accrued above the designated threshold.
56-hour week employees: 1680 - 1860 hours
In addition, employees may be allowed to “bank” all hours in excess of 1,860.

Banked hours may not later be converted to cash and will be used as sick leave only when all other sick leave is exhausted or be converted to CalPERS service credit upon retirement.

B. Vacation Conversion
Employees with 15 or more years of regular service and a minimum sick leave balance of 150 hours for 56-hour/week schedules may elect to convert sick leave

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to vacation time according to the following table:

Years of Service Maximum No. of Extra Vacation Hours
15 - 19 24/year
20 - 24 36/year
25+ 48/year
Department head approval is required prior to taking vacation, and converted hours are not allowed to accumulate from one calendar year to the next.

14.04.03 Retirement Conversion
In addition to selecting the CalPERS service credit option, employees retiring from the City with at least twenty (20) years of regular service may also elect to convert a maximum of 1,500 hours of their accrued sick leave (banked and unbanked) in 100 hour increments to an additional 1% contribution by the City towards the cost of their retiree medical benefits as defined by Sections 18.04 (Retiree Medical Plan) and 18.05 (Retiree Medical Incentive) of this memorandum. For example, the maximum conversion of 1,500 hours would equal a 15% increase in the City’s contribution towards a retiree medical plan for a maximum 90% contribution.

All restrictions and requirements of Sections 18.04 (Retiree Medical Plan) and

18.05 (Retiree Medical Incentive) apply to this sick leave incentive option including, but not limited to, eligibility and plan availability.

Procedures clarifying the sick leave incentive program shall be prescribed by the Chief People Officer (Director of Human Resources) and/or City Manager and shall be subject to administrative directive.

SECTION 15.00 – VACATION
Vacation accrual will be on a monthly basis beginning at date of hire. Accumulated vacation time may not exceed twice the annual rate of accrual unless prior written authorization for a specified amount is received from the City Manager or Chief People Officer (Director of Human Resources). An employee must be on paid status at least 50% of the working hours of a pay period to earn vacation for that period. Upon proper authorization, a probationary employee may use accrued vacation leave.

Vacation accrual shall be based on continuous regular service, as follows:

15.01 40-HOUR PER WEEK SCHEDULES
Up to 5 years
(inclusive):
80 hours per year
6 to 10 years (inclusive): 120 hours per year
11 or more years: 120 hours, plus eight (8) hours for each year of service after ten (10) years to a maximum of 160 hours.

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15.02 56-HOUR PER WEEK SCHEDULES
Up to 5 years
(inclusive):
12 hours per month
6 to 10 years
(inclusive)
18 hours per month
11 or more years: 18 hours per month plus one hour per month for each year of service after ten (10) years to a maximum of
twenty-four (24) hours per month.

SECTION 16.00 – BEREAVEMENT LEAVE
The purpose of this section is to provide paid leave for employees when they are bereaved at the death of a family member and this loss has had a temporary effect on the employee’s ability to continue daily work performance.

In accordance with the California Family Rights Act (CFRA), employees who have been employed for at least thirty (30) days, are entitled to bereavement leave. Employees shall be granted up to five (5) working days (no necessarily consecutive days) of paid bereavement leave in a calendar year to attend to necessary obligations and commitments related to the death of a family member (i.e., the employee’s spouse, registered domestic partner, child, stepchild, parent, stepparent, sibling, grandparent, parent-in-law, or sibling-in-law). In accordance with the California Family Rights Act (CFRA), employees will also be granted up to five (5) working days (not necessarily consecutive days) of unpaid bereavement leave for any additional obligations or commitments related to the death of a family member. An employee may use vacation, sick leave, and/or compensatory time off in addition to the five (5) days of paid bereavement leave, subject to approval from the Fire Chief. Employees may elect to use available sick leave, vacation leave, or other types of paid leave in order to receive pay during unpaid bereavement leave. A leave of absence with pay of up to twenty-four (24) hours for 40- hour/week employees or thirty- six (36) hours for 56-hour/week employees per incident is available to an employee in the event of a death in the employee’s family which shall, for the purpose of this article, include spouse, parent, son, daughter, grandparent, sibling, mother or father-in-law, registered Principal Domestic Partner, grandchild of employee, spouse, or registered Principal Domestic Partner, son-in-law, daughter-in- law, grandparent-in-law, brother-in-law, sister-in-law or a close relation residing in the employee’s household.

SECTION 17.00 – LEAVES OF ABSENCE

17.01 PAID LEAVES OF ABSENCE

17.01.01 Paid Birth/Adoptive Leave
An employee is entitled to forty-eight (48) hours leave (56 hours schedule) or forty (40) hours leave (40 hour schedule) with pay at or about the time of the birth of the employee’s child or at the time of adopting a child. The paid leave shall be within two (2) months of the birth or adoption. This leave will be considered a part of the time allotted to family leave as authorized in Section 17.02.03 (Family Leave).

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17.01.02 Military Duty
An employee who is a member of the National Guard or any reserve component of the armed services of the U.S. shall be granted up to thirty (30) days per year of paid leave for any active duty scheduled during the employee’s regular work hours (or 10 shifts per year for 24-hour personnel). The employee must give their supervisor forty-eight (48) hours advance notification of the need for such leave and must present a copy of the official notice for such duty. All other military leaves shall be granted pursuant to relevant state and federal statutes. Employees who exhaust the paid leave benefits described above may take unpaid leave pursuant to Section 17.02.01 and are not required to use vacation or other similar leave.

17.02 UNPAID LEAVES OF ABSENCE

17.02.01 Medical or Personal Leave
Leave of absence without pay may be granted to an employee in a case of extended illness or disability, personal emergency or other situation where such absence would not be contrary to the best interests of the City. Approval of all such leaves of absence is at the sole discretion of management. Such unpaid leave will only be granted after an employee has depleted all appropriate paid leaves. Employees on Military Leave pursuant to Section 17.01.02 are not subject to the leave depletion requirement. The department head may grant a leave of absence of up to thirty (30) consecutive calendar days; additional leave may only be granted by the City Manager and may not exceed a total of twelve months. No vacation, holidays, sick leave, or any other paid benefit shall be accrued or earned during such leave. All requests for unpaid leaves of absence must be made in writing and include specific begin and end dates for the leave. Denials of unpaid leaves of absence shall be given in writing and contain the reason therefore.

17.02.02 Pregnancy Disability Leave
An employee may take a leave of absence up to four (4) months in length for the purpose of pregnancy disability leave. The City may request a license medical practitioner’s opinion regarding any work restrictions that may exist prior to or after delivery.

Requests for pregnancy disability leave must be made in writing to the Fire Chief at least thirty (30) days in advance of the anticipated starting date. Such request must include specific begin and end dates for the leave. Starting dates should be as accurate as possible barring any unforeseen medical issues related to the pregnancy or earlier or later birth than expected. Any requests for extension of pregnancy disability leave must be made in writing to the Fire Chief at least ten (10) calendar days prior to the scheduled end of the existing leave.

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The employee may elect to use any appropriate paid leave either before or after an approved pregnancy disability leave, within the use limitations of those leave provisions. No combination of pregnancy disability leave, family leave, sick leave or vacation may exceed one year total or seven (7) months post-partum.

Any additional post-partum leave , not to exceed one (1) year total, may be approved by the City Manager or his designee after consideration of the nature of the request and the operational needs of the department.

Upon return to work, the employee shall be assigned to the same position but not necessarily to the same assignment.

17.02.03 Family Leave
In accordance with the Federal Family and Medical Leave Act and the California Family Rights Act, the City will grant job protected unpaid family and medical leave to eligible employees for up to twelve (12) weeks, (continuous or cumulative).

Effective January 1, 2016, the City will begin using a “rolling” twelve (12) month period measured backward method to establish the 12-month period. Family leave may be taken for any one or more of the following reasons:

A. The birth of a child and in order to care for such child or the placement of a child with the employee for adoption or foster care including the child of a domestic partner (leave for this reason must be taken within the twelve (12) month period following the child’s birth or placement with the employee). In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave, the aggregate number of workweeks of leave to which both may be entitled is limited to twenty-four (24) workweeks during any twelve (12) month period if leave is taken for the birth or placement for adoption or foster care of the employees’ child or child of the employee’s domestic partner.

B. In order to care for a spouse, domestic partner, child, parent, parentin-law, grandparent, grandchild or sibling of the employee who has a serious health condition.

C. The employee’s own serious health condition that makes the employee unable to perform any one or more of the essential functions of their position.

D. Military family leave, which includes:

1. “Qualifying Exigency Leave” may be taken if the employee’s spouse, son, daughter, or parent is on covered active duty or called to covered active duty status in the Regular Armed Forces during deployment to a foreign country or in the National Guard and

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Reserves during deployment to a foreign country under a call or order in support of a contingency operation; qualifying exigencies may include short-notice deployment, attending certain military events, arranging for alternative childcare and school activities, addressing certain financial and legal arrangements, attending certain counseling sessions, rest and recuperations, and attending post-deployment reintegration briefings.

2. “Military Caregiver Leave” of up to twenty-six (26) workweeks in a twelve (12) month period may be taken by an eligible employee who is the spouse, son, daughter, parent, or next of kin of a “covered servicemember”, in order to care for the covered servicemember with a serious illness or injury incurred or aggravated in the line of duty while on active military duty.
a. In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave to care for a covered servicemember, the aggregate number of workweeks of
leave to which both may be entitled is limited to twenty-six (26) workweeks during any twelve (12) month period.

17.02.04 Conditions Covering Family Leave
A. Eligible employee means having been employed by the City for twelve (12) months and has worked for at least 1,250 hours during the twelve (12) month period immediately preceding the
commencement of the leave.

B. Medical verification is required for employee or ill family member for medical leave period.

C. Employees are required to give at least thirty (30) calendar days written notice in the event of a foreseeable leave. In unexpected or unforeseeable situations, an employee should provide as much written notice as is practicable.

D. Employees are required to use accrued vacation as a part of the family leave period. Use of sick leave is not required but may be used pursuant to the applicable provisions of the Memorandum of Understanding.

E. Pregnancy disability is not covered under this section and is covered by the California Fair Employment and Housing Act which allows up to four (4) months of leave depending on the actual disability (see Section 17.02.02 – Pregnancy Disability Leave).

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F.E. Employees retain “employee” status while on family care leave.

The leave does not constitute a break in service for purposed of longevity, and/or seniority. Upon return to work, employee will be reinstated to an equivalent position with equivalent pay and benefits.

G.F. Any request for additional leave may be made pursuant to Section

17.02.01 (Medical or Personal Leave). Requests for leave time using multiple time off provisions may not exceed the total amount allowed pursuant to Section 17.02.01 (Medical or Personal Leave).

H.G. Benefits premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under the current law, the City will continue to maintain coverage under the same conditions, as coverage would have been provided if the employee had been continuously employed during the leave period.

I.H. Any other conditions or interpretations of the leave shall be based upon the Federal Family and Medical Leave Act and the California Family Rights Act.

17.03 CONTINUATION OF BENEFITS DURING UNPAID LEAVES OF ABSENCE City sponsored insurance benefits may be continued during unpaid leaves of absence in accordance with the following provisions:

17.03.01 Personal Leave
The City shall continue to pay benefit premiums during a personal leave of less than thirty (30) calendar days. For leaves of more than thirty (30) calendar days, employees may continue premium payments at their own cost, in accordance with appropriate CalPERS medical plan provisions.

17.03.02 Medical Leave
The City shall continue to pay benefit premiums during the entire length of a medical leave of absence.

17.03.03 Family Leave
Benefit premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under the current law, the City will continue to maintain coverage under the same conditions as coverage would have been provided if the employee had been continuously employed during the leave period.

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SECTION 18.00 – BENEFITS

18.01 MEDICAL PLAN/FLEXIBLE BENEFITS
The City will provide a medical insurance plan to employees and eligible dependents through the California Public Employees’ Retirement System (CalPERS). The City will contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA).

In accordance with IRS Section 125, the City will provide a flexible benefits plan (“cafeteria plan”) to all eligible employees. If an employee elects to participate in a medical plan, the maximum monthly City contribution to the cafeteria plan is the cost of the Blue Shield Access+ HMO Plan (for the Bay Area/Sacrament region; Region 1 less the following employee contribution amounts.

Employee Only $70.00
Employee & One Dependent $92.00
Family $95.50
In no event will the maximum monthly City contribution exceed the premium for the plan in which the employee is enrolled. In no event will employees receive cash back based on the plan chosen.

Employees may elect to waive City medical coverage and receive a cash benefit.

In order to receive the medical waiver benefit, the employee must provide proof to the City of other current medical coverage. Full-time employees who waive medical coverage are eligible to receive $200 per month; part-time employees shall receive a pro-rated amount based upon their full-time equivalency (FTE).

The medical waiver may be applied toward the purchase of any pre-tax or post-tax optional benefits, or paid as a taxable cash benefit.

Employees receiving the medical waiver must notify the Human Resources Department if they cease to be covered by any other medical plan, thereby making them ineligible for the medical waiver benefit.

18.01.01 Pre-Tax Optional Benefits
Through the cafeteria plan, employees may enroll in the following optional benefits and elect to pay premiums on a pre-tax basis:

1. Medical Reimbursement Account (MRA)

2. Dependent Care Assistance Plan (DCAP)

3. Cancer and Critical Illness Protection Insurance

18.01.02 Post-Tax Optional Benefits
Employees may also enroll in the following optional benefits and elect to pay premiums on a post-tax basis:

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1. Additional life insurance

2. Accident protection insurance

3. Long term care insurance

18.02 PRINCIPAL DOMESTIC PARTNERS
The City will provide medical, dental, and vision benefits to employees with Principal Domestic Partners equivalent to those provided to an employee’s spouse. Employees may enroll their eligible Principal Domestic Partners and the eligible dependents of their Principal Domestic Partners subject to eligibility requirements established either by CalPERS or the City and subject to tax regulations of the State of California and the Internal Revenue Service of the United States government.

18.03 DENTAL AND VISION BENEFITS
The City shall provide a dental plan for employees and their eligible dependents at no premium cost to employees and with the following minimum benefit levels.

In-PPO Network Out-of-PPO Network
(fees charged are usually
higher)
Annual Deductible $25/person, $75/family $25/person; $75/family Annual Maximum $1,500/person $1,500/person
Diagnostic & Preventive 100% 80% of contract allowance
Basic Benefits 80% 80% of contract allowance
Crowns & Other Castings
Restorations/
50% 50% of contract allowance
Prosthodontics 50% 50% of contract allowance
Orthodontic Benefits (for
dependent children only)
50% up to $2,000
lifetime maximum/
person (up to age 23)
50% of contract allowance up to
$2,000 lifetime maximum/person
(up to age 23)
The City shall provide a vision plan for employees and their eligible dependents at no premium cost to employees and with the following minimum benefit levels.

Co-Pays $15 (does not apply to contacts)
Exams 100%, every 12 months after co-pay
Prescription Lenses
Lenses
100%, every 12 months after co-pay
Frames 100% up to $115 plus 20% off any out-of-pocket
costs, every 24 months after co-pay
Contacts 100% (in lieu of glasses) up to $105, every 12 months - no co-pay

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18.04 RETIRED HEALTH PLAN
Covered employees who retire under the provisions of the City’s contract with CalPERS are currently eligible to continue CalPERS medical coverage. The City will contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA), currently $151 for 2022.

18.05 RETIREE MEDICAL INCENTIVE
In addition to the PEMHCA minimum monthly contribution amount pursuant to Government Code Section 22892 (currently $122 for 2015) that the City contributes for all employees in a CalPERS medical plan, employees currently on the City’s retiree medical plan and future covered employees who receive a retirement from PERS and have at least five (5) years of continued service with the City and are at least fifty (50) years of age will receive a retiree medical benefit in the amount of $112.04 per month. This benefit will continue as long as the employee continues PERS medical coverage and until such time the retiree is eligible for Medicare or other Federal or State health programs, solely on account of age.

Employees who retire with more than twenty (20) years of City service will receive a retiree medical incentive of 75% the cost of the employee-only coverage of the highest CalPERS HMO plan from only among those plans available in Santa Cruz County at the time of ratification of this agreement (less the contribution listed in Section 18.04 (Retiree Medical Plan) of this memorandum).

To the extent allowed by law, the benefits bestowed by this section are intended to survive the termination and/or expiration of this memorandum. To this end, future Fire Management bargaining representatives shall not amend or delete these benefits retroactively or agree to benefits at variance with the above defined benefits so as to reduce or eliminate the benefits herein conferred upon existing retirees.

18.06 DISABILITY RETIREMENT BEFORE AGE 50
Upon disability retirement before age 50, an employee shall be reimbursed for unused sick leave through the provision of the City’s retired health care plan for the employee only to the following limits, whichever occurs first: (1) up to the current value of the employee’s sick leave accrual; or (2) until such time as the employee obtains primary health care coverage under another plan; or (3) until the employee is eligible for Federal or State medical programs. Once any of these limits are reached, the employee is no longer eligible for coverage under this plan.

The retiree shall notify the City in writing at such time as they are receiving primary coverage under another plan.

Two years after the date of retirement, if a retiree is still covered under the City’s

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plan, they must provide the City with an affidavit stating that they are not receiving primary coverage under another plan. If the retiree fails to provide such an affidavit, the City has the right to cancel coverage with 30 days written notice.

To be eligible for this Retired Health Care Plan, the employee must have an accrued sick leave balance of 144 hours as of the effective date of disability retirement.

If an employee is medically declared to be totally disabled, the City shall provide the retired health plan to that employee until they are eligible for Federal or state medical programs, regardless of the employee’s sick leave balance.

In all cases, retired employees may purchase coverage for their dependents under this plan as long as they, themselves, remain eligible and are insured under the plan.

Employees with 15 or more years of service may elect to apply all or part of their sick leave toward purchase of the retired health care plan or convert it to cash as provided under Section 14.04 (C).

18.07 LIFE INSURANCE
The City shall contribute full cost toward the City-sponsored $25,000 basic term life insurance program.

The City shall make a voluntary term life insurance policy available to unit employees.

18.08 LONG TERM DISABILITY INSURANCE
The City shall contribute full cost of the City-sponsored long-term disability program. The maximum monthly benefit shall be at least $105,000.

18.09 MEDICARE BUY BACK
The City will meet and discuss with the Association the desirability and implementation of Medicare buyback. Because this item is not cost neutral to the City, further discussion regarding the level of employee participation is needed before the City can agree to implement a Medicare buyback process.

18.10 HEALTH SAVINGS ACCOUNT
The City will meet and discuss with the Association to facilitate the established of a third-party-managed Health Savings Account for Association members.

SECTION 19.00 – UNIFORM ALLOWANCE AND REPLACEMENT
Employees will comply with departmental standards with regard to appearance and cleanliness.

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To this end, the City agrees to pay the cost of cleaning department authorized uniforms. For this purpose, the City will establish an account at a dry cleaning establishment located within the City of Santa Cruz. For their part, employees will deliver and retrieve uniforms from the dry cleaning establishment, and do so during non-working hours. However, under exceptional circumstances, subject to the approval of the Fire Chief or his representative, uniforms may be delivered or retrieved during working hours.

The City agrees to replace uniforms on an as-needed basis, as determined by the Fire Chief. It shall be the responsibility of each unit employee to arrange for purchasing, fitting, pickup, delivery, return, repair and control of uniform items.

The parties agree that for PERS reporting purposes, the value of the cleaning service is four hundred and sixty-eight dollars ($468.00) per year.

Employees who themselves pay the employee share of PERS, shall pay the PERS cost of the value of cleaning service. Such payment shall be made through a payroll deduction out of their paycheck each pay period. The amount of the deduction shall be determined by multiplying the employee’s PERS contribution rate by eighteen ($18.00) dollars.

SECTION 20.00 – MANAGEMENT BENEFITS

20.01 MANAGEMENT VACATION
In the first full pay period in January of each year all management employees will be credited with vacation time in addition to their normal authorized vacation allowance. Those on a 40-hour/week schedule shall receive 80 hours management vacation, and those on a 56- hour/week schedule shall receive 112 hours management vacation. Although these additional hours will be documented on the employee sick leave and vacation schedule, it will be itemized separately.

Employees desiring to be paid for any or all of their management vacation may so indicate on either July 1 or December 31 of each year. Upon separation, employees shall receive the value of their unused accrued management vacation.

This benefit will be pro-rated for new hires.

It is mutually understood and agreed that retroactive changes to time cards converting already used management vacation to some other form of paid leave, thus increasing the number of management vacation hours eligible for pay out at years end, will not be allowed.

It is mutually understood and agreed that it is each individual employee’s responsibility to manage their use of management vacation hours to avoid the loss of any unused time.

Accumulation of management vacation shall not exceed eighty (80) hours for 40-hour per week employees and one hundred twelve (112) hours for 56-hour per week employees.

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20.02 OPTIONAL MANAGEMENT BENEFIT
In recognition of unscheduled and special assignments performed by management employees and night meetings they occasionally attend, the City will contribute $1,500 for employees with more than ten (10) years of service and $1,300 for employees with less than ten (10) years of service, annually, to an optional management benefit plan. Payment for this benefit shall be made in July of each year for the previous fiscal years’ service.

Employees may select the following options for use of the benefit:

1. Payment to deferred compensation;

2. Upon approval of the department head, purchase of additional vacation leave;

3. Direct payment to the employee.

This benefit will be prorated for new hires and terminated employees.

SECTION 21.00 – CITY PROVIDED VEHICLE
Subject to the approval of the Fire Chief and the City Manager, a City provided car may be provided to the Division Chiefs. Employees approved for and provided with City vehicles are responsible for all associated tax liabilities in accordance with Federal, State, and local regulations and laws.

SECTION 22.00 – REDUCTION IN FORCE
All Fire department employees shall be subject to the layoff policy and procedure provided in this section. In case of elimination, reorganization, or reclassification of personnel during the term of this agreement, the City agrees to discuss redistributing negotiated cost of living adjustments to assist with additional workloads that may be imposed. It is recognized and agreed that the salary savings resulting from any reductions of the work force are to be wholly realized by the City.

22.01 LAY-OFFS
The City reserves the right to reduce its workforce by layoff of employees for reasons of economy or changes in departmental operations. When one or more employees assigned to the same classification within a department are to be laid off, the order of layoff shall be as follows:

1. Temporary

2. Probationary

3. Regular

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The order of layoffs shall be governed by seniority in the current classification from the date of hire in the classified position.

22.02 BUMPING
Bumping is defined as a voluntary movement of an employee to be laid off from their current classification to a previously held lower classification (based upon previous duties, if title has changed) held by an employee with less seniority.

An employee with sufficient seniority to bump an employee in a lower classification shall bump the least senior person in that classification.

For bumping purposes, the employee exercising bumping, will add time in the affected position (position bumping into), current position (laid off position), and related higher position as total seniority time. This time will be carried forward and bump that employee in the next lower classification with less time in the lower classification. This seniority will establish the individual’s seniority in the lower classification.

22.03 NOTIFICATION
Employees to be laid off shall be given not less than fifteen (15) working days written notice prior to the reduction in force. An employee wishing to bump to a lower classification shall provide written notice to the City within ten (10) days of receiving their layoff notice.

22.04 REINSTATEMENT
Should there be a vacancy in the classification from which an employee was laid off be re- established within 18 months, the employee shall be eligible for reinstatement. It shall be the employee’s responsibility to notify the Human Resources Department of their current address. Every effort shall be made to notify the affected individual of any reinstatement opportunity. Reinstatement shall be in the reverse order of layoff.

SECTION 23.00 – GRIEVANCE PROCEDURE

23.01 PURPOSE
To assure prompt and fair treatment of employee grievances related to employment. Any employee covered by this Memorandum of Understanding may file a grievance.

23.02 DEFINITIONS
A. Grievance: An alleged violation, misinterpretation or misapplication of the provisions of this Memorandum, the City’s Personnel Rules and Regulations or Fire Department Rules and Regulations.

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B. Workday: All weekdays excluding holidays and weekends.

23.03 LIMITATIONS
A. A grievant may be represented by any representative of their choosing in preparing and presenting a grievance.

B. No reprisal shall result against any employee who presents a bona fide grievance under this procedure.

C. Time limits may be extended by written mutual agreement of the parties.

D. A grievance shall be considered settled in favor of the other party if, at any step, a decision is not rendered or appealed within the specified time limit.

E. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

23.04 PROCEDURES

23.04.01 Step I
The grievant will first attempt to resolve the grievance through informal discussions with successive levels of supervision beginning with their immediate supervisor through their highest management-level supervisor, exclusive of the department head. These discussions must be initiated within ten (10) workdays of when the employee knew, or reasonably should have known the incident upon which the grievance is based. Every attempt will be made by the parties to settle the issue at this level.

23.04.02 Step II
If the grievance is not resolved through the informal discussion, the employee may, within ten (10) workdays, submit a written grievance to their department head after the informal meeting.

The written grievance must contain in clear, factual and concise language:

1. A brief statement as to the date of the occurrence on which the grievance is based and the facts as the grievant see them.

2. The rule, regulation or act on which the grievance is based.

3. The action the grievant believes will resolve the grievance.

4. Signature of the employee.

The department head shall have ten (10) workdays following receipt of the appeal to review the matter and prepare a written response. Copies shall go to the parties

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involved and the Human Resources Department.

23.04.03 Step III
If the grievance is not resolved, the grievant may, within five (5) workdays following receipt of the department head’s response, appeal to the City Manager or their representative, stating in writing the basis for the appeal.

The City Manager or their representative shall render a written decision to all parties directly involved within fifteen (15) workdays following the date which the aggrieved employee appealed the department head’s decision.

23.04.04 Step IV
If the grievance is not resolved to the satisfaction of the employee at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided they inform the City Manager in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately, thereafter, jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the state Mediation and Conciliation Service, the parties within five (5) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the arbitrator. If one person is not mutually agreed upon, the parties shall within five (5) days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The arbitrator shall have no authority to add to, detract from, alter, amend or modify any provision of this Agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in the Agreement, or to alter any wage rate or wage structure. The decision of the arbitrator shall be rendered after the evidence and arguments are presented to them by the parties in the presence of each other and in post-hearing briefs, if necessary. The decision of the arbitrator shall be final and binding upon the parties.

The arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

The arbitrator’s expenses, if any, shall be borne equally by the parties. Each party shall bear the cost of its own representation.

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SECTION 24.00 – DISCIPLINARY APPEALS PROCEDURE

24.01 DEFINITION
Disciplinary action shall mean written reprimand, suspension (as authorized by FLSA), demotion, disciplinary reduction in salary, or discharge.

The appeal procedure described herein shall apply to cases of disciplinary action affecting regular employees. It shall not be applicable to probationary employees. Employees have the right to representation at any or all stages of the appeal process.

24.02 PRE-ACTION PROCEDURE

24.02.01 Step I
Prior to imposing disciplinary action which would result in a loss of salary, the supervisor shall first provide the employee a preliminary written notice of the proposed action stating the effective date, the specific grounds and particular facts upon which the action will be taken. The employee shall have access to any known written materials, reports or documents upon which the action is based.

The employee shall have the right to respond to the charges within five (5) workdays from receipt of the notice either orally, in writing, or both to the Fire Chief.

The employee may request an extension of the time to respond for justifiable reasons. Failure to respond within the time specified will result in the employee’s waiver of their procedural rights and final action will be taken.

24.02.02 Step II
Following a review of a proposed disciplinary action the Fire Chief, within five (5)ten (10) workdays of receiving employee’s response, shall render a written decision and send it by registered mail or personal delivery to the employee. A copy shall also be mailed to the employee’s representative. The written decision will include the effective date of the disciplinary action.

The employee has the right, within five (5)ten (10) workdays after receiving the decision, to file a request for appeal with the City Manager. The appeal shall be a written statement, signed by the applicant, explaining the matter appealed from, stating the action desired by the appellant, with their reasons therefore, and stating that the pre-action procedures have been exhausted.

24.03 POST-ACTION APPEAL

24.03.01 Step III
If the employee files a timely appeal, the City Manager shall, within five (5)ten (10) workdays after receiving the appeal, designate a hearing officer who shall

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schedule a hearing not less than five (5)ten (10) workdays from the date the appeal is received. The hearing date itself is not required within this timeframe.

The hearing officer may conduct such independent investigation of the matter as they deem necessary to evaluate claims raised by the employee during the hearing.

However, the hearing officer shall not initiate an investigation or introduce new factual findings that were not previously disclosed to the employee as part of the basis for their discipline, unless those facts were introduced by the employee during the hearing. In such cases, the hearing office may include those facts solely to supplement the findings related to the employee’s claims. The appellant shall be given the opportunity to answer or present evidence in opposition to the findings of this independent investigation.

The appellant shall appear personally at the scheduled hearing unless physically unable to do so. The appellant or their representative may produce relevant oral or documentary evidence at the hearing.

Within fifteen (15) workdays following the hearing, the hearing officer shall render a written decision to all parties involved. The hearing officer has the authority to affirm, repeal or modify the disciplinary action.

For discipline equivalent to the severity of suspension (as authorized by FLSA) of one (1) week or less, or leave balance reduction of one (1) week or less, there shall be no appeal beyond Step III and the City Manager’s decision shall be final.

24.03.02 Step IV
If the appeal (except as exempted above) is not resolved to the satisfaction of the appellant at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided it so informs the City Manager in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately, thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within five (5) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the arbitrator. If one person is not mutually agreed upon the parties shall within five (5) days after receipt of the list of names, alternately strike two (2) names from such list with the last remaining name to be the person serving as arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The arbitrator shall have no authority to add to, detract from, alter, amend, or

22.45

modify any provision of this agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this agreement, or to alter any wage rate or wage structure. The decision of the arbitrator shall be rendered after the evidence and arguments are presented to them by the parties in the presence of each other and in post hearing briefs, if necessary. The decision of the arbitrator shall be final and binding upon the parties.

The arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

The arbitrator’s expenses shall be borne equally by the parties. Each party shall bear the cost of its own representation.

24.04 FIREFIGHTER PROCEDURAL BILL OF RIGHTS ACT
During the period of this Memorandum of Understanding, the City and Association agree to adopt and comply with the Firefighter Procedural Bill of Rights, codified at California Government Code §§ 3250-3262, effective January 1, 2008.

SECTION 25.00 – WRITTEN REPRIMANDS
A written reprimand may be issued by an employee’s supervisor if an employee has violated a City rule, provision of the M.O.U., or if their performance is in need of improvement. Written reprimands shall be placed in the employee’s personnel file. An employee shall have the right to prepare a written response to the reprimand and have said response placed in their personnel file. An employee may appeal the supervisor’s decision to issue a written reprimand to the Fire Chief by filing an appeal to the Fire Chief within five (5) working days of receipt of the reprimand.

The Fire Chief’s decision regarding the written reprimand shall be final.

SECTION 26.00 – SEVERABILITY
This Memorandum is subject to all current and future applicable Federal and State laws, State regulations, California Constitution, and City of Santa Cruz Charter, Resolutions, or Ordinances.

Should any of the provisions herein contained be rendered or declared invalid by reason of any State or Federal legislation or court action, such invalidations of such part or portions of this Memorandum shall not invalidate the remaining portions hereof and they shall remain in full force and effect insofar as such remaining portions are severable.

DATED:

FIRE MANAGEMENT ASSOCIATION CITY OF SANTA CRUZ

22.46

OF THE CITY OF SANTA CRUZ
Joshua Coleman, Fire Battalion Chief Sara De Leon, Lead Negotiator Timothy L. Davis, Labor Counsel
EXHIBIT A – DISCRIMINATION, HARASSMENT, RETALIATION,

AND RESPECTFUL WORKPLACE CONDUCT POLICY

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EXHIBIT B – DISCRIMINATION/HARASSMENT/RETALIATION

POLICY IMPLEMENTATION AND COMPLAINT PROCEDURE

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EXHIBIT C – RESPECTFUL WORKPLACE CONDUCT POLICY

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P:\Labor Relations\Unions\Fire Management\2022-2025\FINAL - FireManagement_MOU_2022- 2025.docx

22.65 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Human Resources
SUBJECT: Santa Cruz Police Officers’ Association of the City of Santa Cruz Memorandum of Understanding (HR)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt the successor Memorandum of Understanding for Santa Cruz Police Officers’ Association (POA) of the City of Santa Cruz effective March 14, 2026 through March 23, 2029.

BACKGROUND: On March 10, 2026 a Tentative Agreement on the successor MOU was brought to Council. The 2026 - 2029 Successor MOU in its entirety including the changes as agreed is now being provided to Council as a final administrative action.

The Memorandum of Understanding (MOU) with the Santa Cruz Police Officers’ Association expired on March 13, 2026. The POA and the City met and conferred in good faith in accordance with the Meyers-Milias-Brown Act regarding wages, hours, and other terms and conditions of employment. As a result, the POA and the City have reached a Tentative Agreement on a successor MOU.

As with other labor contracts, the approach to determining successor Police Officers’ compensation is dependent upon: (1) market status or the latest market study; (2) the Consumer Price Index, San Francisco Bay Area (CPI-U); and (3) available funding. Based on the 2025 Compensation study, the median average market standing of total compensation for Police Officer and Police Sergeant classifications is 9.0% below market. The City considers classifications within 5% of the market as competitive.

The POA and the City have been meeting and conferring on a successor MOU and have reached a Tentative Agreement. In summary, the major terms of the new MOU include changes to the following sections:
 Section 14- Pay Rates and Practices
 Section 15- Holidays
 Section 16- Vacation

23.1 DISCUSSION: The 2026 - 2029 Successor MOU in its entirety including the changes as agreed is now being provided to Council as a final administrative action.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

HEALTH IN ALL POLICIES (HiAP): Approval of the successor agreements for POA addresses the public health pillar of HiAP by supporting operational continuity, ensuring stable leadership in managing essential City services and programs that directly affect community wellbeing.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: Yes

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: Yes FISCAL IMPACT DESCRIPTION: Additional appropriations to account for the cost of these compensation and benefit changes were approved by City Council in the FY 2026 midyear budget adjustment and are incorporated into the FY 2027 Proposed Budget.

Prepared and Submitted By:

Sara De Leon
HR Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION APPROVING SUCCESSOR MEMORANDUM OF UNDERSTANDING FOR POA.DOCX

2. EXHIBIT A – POA MOU – TRACK CHANGES.DOCX

23.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

SUCCESOR MEMORANDUM OF UNDERSTANDING WITH THE SANTA CRUZ POLICE OFFICERS’ ASSOCIATION
WHEREAS, representatives of the City of Santa Cruz and Santa Cruz Police Officers’ Association (POA) have met and conferred in good faith to bargain for a successor agreement; and WHEREAS, the Tentative Agreement with the POA has been entered into by the respective parties on March 14, 2026 and duly ratified by the POA members; and WHEREAS, the terms of the successor Memorandum of Understanding are attached as Exhibit A;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows: The City Council hereby approves the successor Memorandum of Understanding for the Santa Cruz Police Officers’ Association effective March 14, 2026 and expiring March 23, 2029 PASSED AND ADOPTED this 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

23.3 20263 – 20296

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ
AND
SANTA CRUZ POLICE OFFICERS’ ASSOCIATION
March 14, 20263 to March 123, 20296
P:\Labor Relations\Unions\Negotiations\2022 Negotiations\POA\MOU\POA MOU_2020- 2023_FINAL clean_2020-07-22 and Redline for 2023-2026.docx

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20263 -- 20296

MEMORANDUM OF

UNDERSTANDING CITY OF SANTA
CRUZ
A
N
D
SANTA CRUZ POLICE OFFICERS’

ASSOCIATION
Table of Contents
SECTION 1.00 - TERM..................................................................................................................................6

1.01 Commencement of Negotiations for a Successor MOU .............................................................6 SECTION 2.00 - PREAMBLE..........................................................................................................................6

2.01 Quarterly Meetings....................................................................................................................6 SECTION 3.00 - NO ABROGATION OF RIGHTS..............................................................................................7 SECTION 4.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER..............................................................7 SECTION 5.00 - PAST PRACTICES .................................................................................................................7 SECTION 6.00 - NO DISCRIMINATION..........................................................................................................8 SECTION 7.00 - EMPLOYEE RIGHTS .............................................................................................................8 SECTION 8.00 - RECOGNITION AND PAYROLL DEDUCTION .........................................................................8

8.01 Recognition................................................................................................................................8

8.02 Payroll Deduction ......................................................................................................................8 SECTION 9.00 - ASSOCIATION RIGHTS.........................................................................................................8

9.01 Access to City Facilities...............................................................................................................9

9.02 Access to City Bulletin Boards ...................................................................................................9

9.03 Access to the City’s Internal Mail System.................................................................................10

9.04 Electronic Mail (E-Mail) and Computer Usage ........................................................................10 SECTION 10.00 - UNION NOTIFICATION ....................................................................................................11 SECTION 11.00 - RELEASE TIME.................................................................................................................11 SECTION 12.00 - PERSONNEL ACTIONS .....................................................................................................11

12.01 Personnel Files.....................................................................................................................11

12.02 Performance Evaluations.....................................................................................................12

12.02.01 Late Evaluations .........................................................................................................12

12.03 Probation ............................................................................................................................12

12.03.01 Probationary Period....................................................................................................12

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12.03.02 Objective of Probationary Period................................................................................12

12.03.03 Rejection of Probationary Employee...........................................................................13

12.03.04 Extension of Probation ...............................................................................................13 SECTION 13.00 - WORK ASSIGNMENTS/SCHEDULES.................................................................................13

13.01 Rotation/Reassignments .....................................................................................................13

13.02 4 Day/10 Hour Plan .............................................................................................................13

13.03 Minimum Staffing................................................................................................................14

13.04 Scheduling...........................................................................................................................14

13.05 Absences/Time Off ..............................................................................................................15 SECTION 14.00 - PAY RATES AND PRACTICES ............................................................................................15

14.01 Salary ..................................................................................................................................15

14.02 Salary Steps .........................................................................................................................16

14.02.01 Salary Rates Upon Appointment.................................................................................16

14.02.02 Advancement within the Range..................................................................................17

14.02.03 Longevity ....................................................................................................................18

14.03 Retirement/PERS .................................................................................................................18

14.03.01 Employees Hired on or Before September 2, 2011 (Tier I) ........................................18

14.03.02 Employees Hired On or After September 3, 2011 (Tier II) .........................................19

14.03.03 Employees Hired On or After January 1, 2013 (Tier III)..............................................20

14.03.04 All Employees .............................................................................................................21

14.04 Overtime .............................................................................................................................21

14.05 Working Out of Classification ..............................................................................................22

14.06 Call-back..............................................................................................................................23

14.06.01 Definition....................................................................................................................23

14.06.02 Compensation ............................................................................................................23

14.07 Standby ...............................................................................................................................23

14.08 Police Investigations............................................................................................................23

14.08.01 Investigations Premium Pay.......................................................................................24

14.08.02 Rotational Duty Assignment.......................................................................................24

14.09 Special Duty Pay ..................................................................................................................24

14.10 Special Events......................................................................................................................24

14.11 Training Officer....................................................................................................................24

14.12 Tuition Reimbursement.......................................................................................................25

14.13 Bilingual Pay ........................................................................................................................25

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14.14 Motorcycle Patrol Premium................................................................................................25

14.15 Shift Differential ..................................................................................................................26

14.16 Uniform Allowance and Replacement .................................................................................26

14.17 Personal Property................................................................................................................26

14.18 K-9 Duty...............................................................................................................................26

14.19 Certification/Education Incentive .......................................................................................27

14.20 Overpayments.....................................................................................................................28

14.21 Departmental Technology Coordinator Differential...........................................................28 SECTION 15.00 – HOLIDAYS ......................................................................................................................29

15.01 Holiday Hours & Scheduling ................................................................................................29

15.02 Holiday Bank .......................................................................................................................29

15.03 Holiday Carry-Over..............................................................................................................29

15.04 Eligibility..............................................................................................................................30 SECTION 16.00 - VACATION ......................................................................................................................30

16.01 Accrual ................................................................................................................................30

16.02 Rate of Maximum Vacation Accrual.....................................................................................30

16.03 Sell Back of Vacation ...........................................................................................................30

16.04 Injury or Illness While on Vacation ......................................................................................31 SECTION 17.00 - SICK LEAVE......................................................................................................................31

17.01 Definition ............................................................................................................................31

17.02 Accrual and Use...................................................................................................................31

17.02.01 Family Sick Leave........................................................................................................32

17.02.02 Bereavement Leave....................................................................................................32

17.02.03 Personal Business Leave.............................................................................................32

17.03 Limitations...........................................................................................................................32

17.04 Sick Leave Incentive Program ..............................................................................................33

17.05 Emergency Illness Leave .....................................................................................................33 SECTION 18.00 - LEAVES OF ABSENCE.......................................................................................................33

18.01 Military Duty .......................................................................................................................33

18.02 Workers’ Compensation......................................................................................................34

18.03 Light Duty ............................................................................................................................34

18.04 Medical or Personal Leave...................................................................................................35

18.05 Pregnancy Disability Leave ..................................................................................................35

18.06 Family Leave........................................................................................................................36

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18.07 Continuation of Insurance Benefits during Unpaid Leaves of Absence................................37

18.07.01 Personal Leave............................................................................................................37

18.07.02 Family Leave ...............................................................................................................37

18.08 Blood Donations..................................................................................................................37

18.09 Absence for Examination.....................................................................................................37 SECTION 19.00 - BENEFITS ........................................................................................................................37

19.01 Medical Plan........................................................................................................................38

19.01.01 Optional Benefits........................................................................................................38

19.02 Principal Domestic Partners.................................................................................................39

19.03 Retiree Medical Plan............................................................................................................39

19.04 Retiree Medical Incentive....................................................................................................39

19.05 Dental and Vision Program..................................................................................................39

19.06 Long Term Disability ............................................................................................................40

19.07 Life Insurance ......................................................................................................................40

19.08 Counseling Services .............................................................................................................40 SECTION 20.00 - EMPLOYER RESPONSIBILITY............................................................................................40 SECTION 21.00 - VESTS..............................................................................................................................41 SECTION 22.00 - SERGEANT PROMOTIONAL EXAM...................................................................................41 SECTION 23.00 - EMERGENCY MEALS .......................................................................................................41 SECTION 24.00 - GRIEVANCE PROCEDURE ................................................................................................41

24.01 Purpose ...............................................................................................................................41

24.02 Definition ............................................................................................................................41

24.03 Limitations...........................................................................................................................41

24.04 Procedures ..........................................................................................................................42 SECTION 25.00 - DISCIPLINARY APPEALS PROCEDURE...............................................................................43

25.01 Definition ............................................................................................................................43

25.02 Pre-Action Procedure ..........................................................................................................43

25.03 Post-Action Appeal ..............................................................................................................44 SECTION 26.00 - WRITTEN REPRIMANDS ..................................................................................................45 SECTION 27.00 - ENFORCEMENT OF TERMS .............................................................................................46 SECTION 28.00 - SEVERABILITY .................................................................................................................46 SECTION 29.00 - LAYOFF POLICY & PROCEDURE .......................................................................................46

29.01 Layoffs.................................................................................................................................46

29.02 Bumping ..............................................................................................................................46

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29.03 Notification .........................................................................................................................47

29.04 Reinstatement.....................................................................................................................47 SECTION 30.00 - POLICE DEPARTMENT RESOURCE ALLOCATION COMMITTEE.........................................47

TABLE OF CONTENTS
EXHIBIT A POLICE CLASSIFICATIONS ............................................................46

EXHIBIT B STATEMENT OF EQUAL EMPLOYMENT OPPORTUNITY
AND NON-DISCRIMINATION POLICY .........................................47 EXHIBIT C DISCRIMINATORY HARASSMENT POLICY...........................51 EXHIBIT D K-9 AGREEMENT ...............................................................................56 EXHIBIT E SCPD POLICY #1001 (ABSENCES/TIME OFF) ..............................59 EXHIBIT F SENIORITY LIST................................................................................67 EXHIBIT G RESPECTFUL WORKPLACE CONDUCT POLICY......................68

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20260 -- 20293

MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND
SANTA CRUZ POLICE OFFICERS’ ASSOCIATION
SECTION 1.00 - TERM
The term of this Memorandum of Understanding shall commence March 7414, 20236, or when Council approves the successor MOU in open session, whichever is later,0 and shall expire March 13323, 202639.

1.01 Commencement of Negotiations for a Successor MOU
Either party may serve upon the other party a demand to commence bargaining for a successor MOU on or before September 3, 2022December 15, 2028. In the event either party serves its demand by September 3, 2022December 15, 2028, the parties will commence negotiations for a successor MOU no later than September 17, 2022January 8, 2029, unless a later date is mutually agreed upon by the parties in writing. In the event demand is served after September 3, 2022December 15, 2028, the parties will commence bargaining on a mutually agreed upon time and date.

SECTION 2.00 - PREAMBLE
This Memorandum is entered into by the City of Santa Cruz (hereinafter referred to as the City) and the Santa Cruz Police Officers’ Association (hereinafter referred to as the Association). For the purpose of this Memorandum, employee shall mean a regular status employee employed in the classifications listed in Exhibit A. Any part-time regular employees covered by this agreement will receive benefits included in the agreement on a prorated basis, given the ratio of the budgeted work schedule to full time. This Memorandum is subject to Section 3500-3510 of the Government Code of the State of California, the City of Santa Cruz Charter and Municipal Code, and the City of Santa Cruz Personnel Rules and Regulations Employee Relations Resolution (Appendix A).

The City and the Association have met and conferred in good faith and have arrived at an understanding concerning wages, hours, working conditions, and other terms of employment.

The City and the Association recognize their obligation to provide services of the highest quality and efficiency to the community.

The City and the Association affirm the principal that harmonious labor/management relations are to be promoted and furthered.

2.01 Quarterly Meetings
To encourage harmonious labor/management relations, the Chief of Police and Association representatives (in accordance with Section 11.00 (Release Time) of this memorandum)

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will meet no less than once every three (3) months to informally present and discuss issues and ideas that are of potential interest to both parties. During the course of these meetings, the Chief and the Association may discuss the benefits and costs of conducting an employee satisfaction survey or other similar program designed to provide department management with information about employees’ level of job satisfaction.

SECTION 3.00 - NO ABROGATION OF RIGHTS
The parties acknowledge that the City’s responsibilities and rights, and management responsibilities and rights, as indicated in current Appendix A, Article 1, Section 1 of the City of Santa Cruz Personnel Rules and Regulations resolution and all applicable State or Municipal laws and rights of the City Council, are neither abrogated nor made subject to the meet and confer process by the adoption of this Memorandum.

The parties further acknowledge that the rights of employees are neither abrogated nor diminished by the adoption of this Memorandum of Understanding.

SECTION 4.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER This agreement, plus any written departmental rules or regulations, sets forth the full and entire understanding of the parties regarding the matters set forth herein and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

It is agreed and understood that each party, hereto voluntarily and unqualifiedly, waives its right to negotiate and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein.

It is further agreed and understood that, except in cases of emergency, the City shall not implement any changes to any matter within scope, as defined by the Meyers, Milias, Brown Act, as amended, not covered herein without first having met and conferred with the Association. For purposes of this Agreement, emergency means any sudden and unforeseeable incident or occurrence. Changes implemented pursuant to this paragraph shall only be in effect for the duration of the emergency causing the change. No agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto and, if required, approved by the City and ratified by the membership of the Association.

The waiver of any breach of any term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

SECTION 5.00 - PAST PRACTICES
The parties agree that they shall adhere to established labor relations principles in handling past practices. Specifically, in handling past practice issues within the scope of representation:

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1. Past practices superseded by revised MOU language are null and void.

2. Past practices which contradict existing MOU language or written City rules shall be null and void upon reasonable notice from the City that the language will be followed.

3. Past practices within scope which are not covered by MOU language or City rules shall remain in effect through the term of the MOU unless changed through mutual agreement.

SECTION 6.00 - NO DISCRIMINATION
The Association recognizes City Council policies pertaining to equal employment opportunity, the prevention of discrimination and harassment, and respectful workplace conduct as listed in Exhibits B, C, and G, as well as applicable Federal and State discrimination laws.

SECTION 7.00 - EMPLOYEE RIGHTS
Unit employees shall have the right to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employeremployee relations pertaining to wages, hours, and other terms and conditions of employment. Unit employees shall have the right to refuse to join or participate in the activities of the Association and shall have the right to represent themselves individually in their employment relations with the City. No employee shall be interfered with, intimidated, restrained, coerced, or discriminated against by the City of Santa Cruz or by any employee organization because of the exercise of these rights.

SECTION 8.00 - RECOGNITION AND PAYROLL DEDUCTION

8.01 Recognition
Pursuant to Meyers-Milias-Brown and the City’s Personnel Rules and Regulations, the Association is certified as the recognized employee organization representing regular status employees listed in Exhibit A.

8.02 Payroll Deduction
The City shall deduct Association membership dues and any other mutually agreed upon payroll deductions from the monthly pay of member employees. Deductions must be authorized in writing by the employee on a form acceptable to the City and the Association.

The City shall remit such amount to the Association in a timely manner.

SECTION 9.00 - ASSOCIATION RIGHTS
The City of Santa Cruz has an interest in promoting positive labor relations with the Santa Cruz Police Officers’ Association (hereinafter referred to as “Association”), the exclusive representative of regular status employees listed in Exhibit A of the current Memorandum of Understanding. In furtherance of that interest, the City recognizes that communications both between the City and the

23.12 9
Association and communications between the Association and its members are essential and may take various forms. Due to the nature of the employment of bargaining unit members, the City and the Association recognize that it is not possible to schedule meetings at a time when all bargaining unit members may attend during their off duty time and that any meeting scheduled cannot interfere with or affect City needs, workflow, or mission. Accordingly, the parties recognize that communications involving bargaining unit members may need to take various forms. To assist in the communications process, the parties hereby mutually agree to the following as it applies to members of the Santa Cruz Police Officers’ Association Bargaining Unit:

9.01 Access to City Facilities
The Union shall be allowed the use of areas normally used for meeting purposes for meetings of Association members when:
a. Such space is available;
b. There is no additional cost to the City (with the exception of incidental costs such as those for heat and light);
c. It does not interfere with normal, safe, efficient or secure City operations; d. Employees in attendance are either not scheduled for duty or are on duty and leave the meeting promptly when duty calls; and
e. The meeting is either for the purpose of an Association Board meeting or for a General Membership meeting, except as prohibited below.

The Association may use City facilities for purposes of conducting an Association Board meeting as reasonably necessary. Association Board meetings conducted at City facilities shall be concluded as expeditiously as reasonably possible without interfering with normal duties.

The Association may use City facilities for purposes of conducting a General Membership meeting as needed and will be reserved as any other City or Public Organization would have to do. General Membership meetings conducted at City facilities shall be reserved and concluded in the time reserved for the meeting.

The use of City equipment and/or supplies (other than items normally used in the conduct of business meetings, such as desks, chairs, blackboards and projection/sound equipment) is prohibited, even though such equipment and/or supplies may be present in the meeting area.

The Association shall maintain proper order during any meeting held at a City facility and ensure that the space is left in a clean and orderly condition. The City reserves the right to revoke permission to use City facilities for meetings if the Association fails to maintain order during a meeting or if facilities are not left in a clean and orderly condition.

9.02 Access to City Bulletin Boards
The Association shall have access to City bulletin boards located in those buildings in which bargaining unit members are assigned to work for the purpose of posting the following types of notices (these are examples only and not intended to be a complete list):

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a. Notice of recreational and social affairs sponsored by the Association; b. Notice of Association meetings;
c. Notice of Association elections;
d. Reports from Association committees;
e. Rulings on Association policies; and
f. Association newsletters.

All posted material must be legibly signed or initialed and dated by the Association’s President or designated representative. No notice or announcement which contains defamatory statements about the City, including any City Department, any City official, or any City employee(s) shall be posted on City bulletin boards. Any violation of this section shall entitle the City to immediately cancel the provisions of this section and revoke the Association’s privilege to use bulletin boards pursuant to this section. In the event nonauthorized material is posted, it shall be promptly removed by the Association or its representative on notification by the Department. The City reserves the right to remove material that contains defamatory statements before providing notification to the Association; if such action is taken the City shall notify the Association as soon as possible.

9.03 Access to the City’s Internal Mail System
As used in this section, “the City’s internal mail system” does not include the City’s e-mail system (E-mail usage is discussed in Section 9.04 below).

The Association may request that notices be delivered to bargaining unit members through the City’s internal mail system. Notices which may be sent through the City’s internal mail system are limited to those types of notices which may be posted on bulletin boards, as described in section 9.02. No notice or announcement which contains defamatory statements about the City, including any City Department, any City official, or any City employee(s) shall be distributed using the Department’s internal mail system. The City reserves the right to refuse to allow notices to be distributed by Departmental mail that interferes with the Department’s operational needs, workflow, or mission. Notices must be legibly signed or initialed and dated by the Association’s President or designated representative. The Association must provide a sufficient number of copies of any notice that it requests be distributed through departmental mail.

Any mail placed in the City’s internal mail system destined for deposit in the United States Postal Service system must contain sufficient postage when so placed; the City will not pay for postage.

Any violation of this section shall entitle the City to immediately cancel the provisions of this section and revoke the Association’s privilege to use the City’s internal mail system pursuant to this section.

9.04 Electronic Mail (E-Mail) and Computer Usage
The Association recognizes that the City’s Electronic Mail (E-Mail) Use Policy and Police Department General Orders prohibit the use of the City’s e-mail and computer systems for

23.14 11
personal use, that the City’s e-mail and computer systems are to be used solely for City-related business activities, and that the City has the right to access and inspect City computers, including but not limited to viewing any messages sent or received through the City’s e-mail system or any temporary or permanent files stored on the City’s electronic systems and/or equipment.

The City and the Association agree that the Association may be permitted to use City e-mail for the purposes described in this section. Notices which may be sent through the City’s email system are limited to those types of notices which may be posted on bulletin boards, as described in section 9.02. No notice or announcement which contains defamatory statements about the City, including any City Department, any City official, or any City employee(s) shall be sent through the City’s e-mail system. The City reserves the right to refuse to allow notices to be sent through the City’s e-mail system that interfere with the Department’s operational needs, workflow, or mission.

Any violation of this section shall entitle the City to immediately cancel the provisions of this section and revoke the Association’s privilege to use the City’s e- mail system pursuant to this section. It is expected that once the Association Board is aware of any such violations, they would be afforded the opportunity to rectify the situation.

SECTION 10.00 - UNION NOTIFICATION
Except in cases of bona fide emergencies, the Association shall be given seven (7) working days advance written notification of any ordinance, rule, resolution, or regulation relating to matters within the scope of representation proposed to be adopted by the City Council, or management, and shall be given the opportunity to meet with a City representative prior to its adoption.

SECTION 11.00 - RELEASE TIME
During the term of this agreement, a reasonable number of Association members – up to three (3) – shall be allowed a reasonable amount of paid release time off for meet and confer or meet and consult sessions scheduled with the City Council’s designated representative, providing there is no disruption of work in the employee’s division. The exact number to be released shall be determined by mutual agreement prior to the session and shall vary by the type of issue being discussed (i.e., single division affected, multiple divisions affected, etc.) The Association shall notify the Human Resources Director in advance of the meeting of the names of members who will be in attendance.

Such Association members shall obtain permission through supervisory channels before leaving their work or work locations. Ground rules for negotiating successor agreements shall specify the number of Association members allowed for the meet and confer sessions with the City Council’s representatives.

SECTION 12.00 - PERSONNEL ACTIONS

12.01 Personnel Files
There shall be only one personnel file which shall be maintained in the City’s Human Resources Department. Employees shall have the right to review their personnel file or

23.15 12
authorize, in writing, review by their representative. No adverse material will be placed in an employee’s personnel file without prior notice and a copy given to the employee.

Employees may cause to be placed in their personnel file responses to adverse material inserted therein. This provision excludes training, supervisory, and internal affairs files.

12.02 Performance Evaluations
It is compulsory that all regular employees receive an annual written performance evaluation from their supervisor. All employees serving their twelve (12) month probationary period will be evaluated at the completion of their sixth (6th) and twelfth (12th) month of service. All regular employees will be evaluated on their merit review date.

Evaluations are intended to be a summary of the employee’s performance over the course of the evaluation period. Evaluations are also to be used as a tool to motivate the employee’s level of performance. To this end, the supervisor and the employee will meet and discuss work responsibilities, job standards and objectives, review progress and plan for the employee’s future development prior to the evaluation being placed in the employee’s personnel file.

Any additions, corrections, deletions, or changes on the original evaluation form require initialing by both the maker of the amendment and the employee to indicate that the changes have been discussed and understood. No evaluation shall be made on hearsay statements.

Employees may also choose to discuss performance evaluations with the Chief of Police and/or the Human Resources Director and formally enter a response to the evaluation in their personnel file. Disputes regarding performance reviews shall not be subject to the grievance process.

12.02.01 Late Evaluations
Failure of the supervisor to present the employee with the evaluation within ninety (90) calendar days of the due date, unless an extension is mutually agreed upon in writing, shall result in a recommendation of step advancement in conjunction with Section 14.02.02 (Advancement within the Range). However, as soon as possible thereafter, the supervisor shall conduct a performance evaluation in accordance with Section 12.02 (Performance Evaluations).

12.03 Probation

12.03.01 Probationary Period
All original, promotional, and re-hire appointments shall be subject to a probationary period of twelve (12) months. Any time spent by an employee on unpaid status or paid leave shall not be counted as qualifying service toward completion of the probationary period.

12.03.02 Objective of Probationary Period
The probationary period shall be regarded as part of the selection process and shall be utilized for training the new employee on work assignments and standards, and observing and evaluating the employee’s performance.

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12.03.03 Rejection of Probationary Employee
During the probation period, an employee may be rejected at any time by the appointing authority without the right of appeal. Notification of rejection shall be served to the probationary employee in writing.

Any promoted employee who is rejected during the probationary period shall be reinstated to the position from which the promotion occurred; unless the rejection is due to discharge in which case no reinstatement shall occur.

12.03.04 Extension of Probation
All efforts will be made to sufficiently evaluate the probationary employee during the assigned period. An extension of the probationary period may, however, be recommended by the appointing authority when good cause exists. Such extensions shall be for a specific period of time not to exceed three (3) months. The employee shall be informed in writing of the reasons for the period of the extension at least seven (7) calendar days prior to the scheduled end of the probationary period.

SECTION 13.00 - WORK ASSIGNMENTS/SCHEDULES

13.01 Rotation/Reassignments
It is understood and agreed that employees covered by this Memorandum are expected to rotate among shifts and are subject to periodic reassignments (such as TO’s, motorcycle duty, investigations). If these changes are a normal part of their work and are not disciplinary, then the reassignment is not subject to the grievance process even though employees may lose or gain eligibility for compensation (such as shift differential or other premium pays). If the reassignment is considered to be disciplinary by the Chief of Police, then the employee maintains their right to appeal as in Section 25.00 (Disciplinary Appeals Procedure). In any event, the employee will be notified as to the reason for the reassignment. The Chief of Police or their designee will announce anticipated openings for specialized assignments department-wide and fill those positions through a standardized selection process. The standardized selection process may be unique to each specialized unit but consistent for all employees being considered for assignment to that unit.

13.02 4 Day/10 Hour Plan
The normal work schedule for all employees covered by this Memorandum (except Police Trainees and new police officers during their non-uniform orientation period) will be a four-ten plan, indicating four (4), ten (10) hour workdays and three (3) consecutive days off each week. The specific assignments not subject to this rule are as follows:

1. School Resource Officers when school is in session, including summer school when it is held in the City of Santa Cruz.

2. Employees assigned to Investigations will have the option to work a 9/80 or

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4/10 schedule as determined by the Chief of Police and based upon operational necessity.

3. CSO’s assigned to Property.

4. Victim Advocates who will be assigned to a 9/80 schedule in lieu of the 4/10 schedule.

For employees assigned to a 9/80 schedule plan, each week’s work days will be scheduled consecutively (followed by consecutive days off). For employees assigned to a 4/10 schedule plan, each week’s work days will be scheduled consecutively (followed by consecutive days off). In the event of operational necessity, the Chief of Police may suspend this schedule on a temporary basis not to exceed thirty (30) days.

Shift selection within Investigations shall be determined by date of assignment into the unit, including assignments to the Gang Task Force or other specialty assignments within Investigations.

The Chief of Police may suspend this rule if they determine that there are insufficient personnel to maintain the safe day to day operations of the organization. In addition, unforeseen catastrophic events such as earthquake, civil unrest, etc., may necessitate a suspension of this rule. The Chief of Police shall notify all affected personnel and the Association thirty (30) days prior to the change or with as much notice as possible given the nature of the particular emergency.

The Association will have two (2) weeks to meet and respond to the Chief of Police and present alternative scheduling plans for their review. The Association will also have the opportunity to meet and confer with the Chief of Police over matters within the scope of representation effected by the suspension of the 4/10 schedule.

In the event the suspension of the 4/10 schedule lasts more than ninety (90) days, the Association will have the opportunity to meet with the Chief to ensure that the conditions for the suspension still exist. This review will be conducted at least quarterly until the suspension ends.

13.03 Minimum Staffing
The Chief of Police will maintain minimum staffing levels for patrol shifts in writing. The intention of maintaining written guidelines for minimum staffing is to provide guidelines and promote consistency between supervisors and managers when making decisions regarding staffing. The Chief of Police will meet and confer on impacts within the scope of bargaining as defined by the Meyers-Milias-Brown Act (MMBA) if the written minimum staffing levels are changed.

13.04 Scheduling
Employees assigned to the Operations Division will be allowed to select their shift based on seniority and as set forth by the Chief of Police. The schedule will be completed no less than thirty (30) days and no more than twelve (12) months prior to shift change.

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Seniority is determined by the employee’s last uninterrupted date of hire in a classification.

A baseline seniority list is incorporated in this MOU and hereby attached as Exhibit F. For employees hired on the same date, seniority will be determined by the date of release from their field training program. Ties will be determined by coin toss.

Exceptions:

1. Training Officers (TO’s): will select their shifts based on seniority as set forth by the Chief of Police along with the rest of patrol personnel. This selection may be overruled by the Chief, however, in favor of the requirements and continuity of the Training Program.

2. Canine Program: exempt.

3. Street Crimes Unit: exempt.

4. Downtown Unit: exempt.

5. Traffic Section: exempt. Seniority for shift selection within the unit is determined by date of assignment to the unit. If all positions are not filled, assignments will be made starting with the least senior non-probationary officer.

6. Probationary employee: exempt.

7. Exemption: through the evaluation process, disciplinary action, medical reasons, or extenuating circumstances, or as identified in Section 13.02 (4 Day/10 Hour Plan) of this Memorandum, an officer may be assigned or reassigned to a certain shift.

8. Leaves of Absence (medical, military, pregnancy disability, etc.): a reasonable expectation must exist that the officer will be able to report for full duty at the start of a new shift. In the absence of a reasonable expectation, those officers will be exempt from this scheduling procedure.

9. Restricted positions: Positions restricted to specific assignments because of funding sources or other external circumstances. If more than one restricted position is assigned to the same unit, seniority for shift selection within that unit is determined by date of assignment to the unit.

13.05 Absences/Time Off
Absences and time off will be regulated based on the practices and procedures set forth in Policy 1001 in the Santa Cruz Police Department Manual as of the date of this Memorandum. Any discrepancies between this Memorandum and the policy will be superseded by this Memorandum. The policy is attached as Exhibit E.

SECTION 14.00 - PAY RATES AND PRACTICES

14.01 Salary
 Effective the pay period that begins on April 4, 2020March 4, 2023March 14, 2026, or the date Council approves the successor MOU in open session, whichever is later, the salary for

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all bargaining unit members shall be increased by an additional two and one-halffour percent (2.54.0%).
 Effective the pay period that begins on March 6, 20212, 202413, 2027, the salary for all bargaining unit members shall be increased by an additional two and one-halffour percent (2.54.0%).
 Effective the pay period that begins on March 6, 2021, a new top step “J” will be added to the Salary Compensation Plan. The new top step “J” shall be five percent (5%) above Step “I.” Employees who have been at Step I for twelve (12) months or more on March 6, 2021 will progress to the new top step “J” on March 6, 2021. Employees who have been at Step I for less than twelve (12) months on March 6, 2021will progress to the new top step “J” in accordance with the procedures in Section 14.02.02 – Advancement Within the Range.  Effective the pay period that begins on March 5, 20221, 202511, 2028, the salary for all bargaining unit members shall be increased by an additional three four percent (34.0%).

14.02 Salary Steps
Each classification in the bargaining unit shall be assigned a salary range that increases by 5% between steps.

Effective November 7, 2015, the Step A for Police Officers shall be eliminated and employees who are currently at Step A shall move to Step B.

Effective March 1, 2025, Step B for Police Officer shall be eliminated and employees who are currently at Step B on the effective date shall move to Step C.

Effective March 1, 2025, Steps A and B for Police Sergeant shall be eliminated and employees who are at Step A and Step on the effective date shall move to Step C.

Effective February 28, 2026, a new top step will be added to the compensation plan which is five percent (5%) above the current top step J for all represented classifications.

Employees at Top Step J for one year or more as of February 28, 2026 will be moved to the new top step on the effective date of February 28, 2026; the balance of employees at current top step (J) will receive new top step on their anniversary date.

14.02.01 Salary Rates Upon Appointment
New employees shall be hired at the first step of the classification’s salary range; unless a higher starting step is recommended by the appointing authority based on the employees advanced qualifications for the position and such recommendation is approved by the Human Resources Director and City Manager.

Promoted employees shall be appointed to the first step in the salary range for the new classification. However, if such employee is already being paid at a rate equal to or higher than the first step of the higher range, they shall be placed at the next higher step in the new range of at least a five (5) percent increase in total compensation. Total compensation

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calculation for purposes of this section will include all specialty pay that was received for at least six (6) consecutive months immediately prior to the time of the promotion.

14.02.02 Advancement within Within the Range
A. Advancement within a classifications salary range shall normally be granted on the employee’s scheduled merit review date. Such advancements shall be based solely on meritorious job performance as documented by a satisfactory performance evaluation submitted by the department head and approved by the Human Resources Director.

A.B. Merit Increase and Performance Review Schedule
Police Officer Trainees: All new Police Officer Trainees shall be advanced to the first step of the Police Officer classification upon successful completion of the police academy. This date shall be considered the start date in the classification and begin a These employees shall then begin their twelve (12) month probation and be eligible for subsequent merit increases as shown belowprobationary period. Advancement within the salary range shall occur as follows, based on satisfactory performance evaluations.

Step 1 – Start of Employment as a Police Officer.

Step 2 – At six (6) months from the start date, upon successful completion of a six (6) month performance evaluation.

Step 3 – At twelve (12) months from the start date and upon successful completion of probation and a satisfactory evaluation.

Thereafter, employees shall be eligible for merit increases annually, subject to satisfactory performance and until top of the salary range is attained.

B.C. All eEmployees shall be eligible for their first merit increase at the end of the first six (6) months of their twelve (12) month probation. After successful completion of the full probation, the employee shall be eligible for subsequent merit increases after each full year on paid status from the last merit review date, continuing until the top of the salary range is attained.merit increases according to the established step schedule for the classification. For Police Officers, merit increases shall occur at six (6) months and twelve (12) months from the original start date in the classification, contingent upon satisfactory performance. Upon completion of probation at twelve (12) months, subsequent merit increases shall occur annually thereafter, subject to satisfactory performance.

D. Merit increases shall normally be from one pay step to the next higher pay step. Increases of two steps may, however, be recommended by the Chief of Police when exceptional performance has been demonstrated by the employee.

Such step increases must be approved by the City ManagerHuman Resources Director or their designee.

C.E. A merit increase may be denied by the department head when an employee’s job performance falls below the acceptable work standards for the duties assigned. The department head may, in such a case, recommend that the employee’s work performance be reviewed again at a specific time before the

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next review date. If a merit increase is granted at that time, the employee’s original review date shall not change and she/he shall be eligible for the next merit increase after one year on paid status from the original review date.

D.F. An employee’s scheduled merit review date shall be adjusted for any time spent by the employee on unpaid status.

E.G. When an employee’s position is reclassified to a classification with a higher salary range, the employee’s new pay shall be set at the first step of the new range or the next higher step in the new range that provides the employee a salary increase of at least five (5) percent. This increase shall have no effect on the employee’s original merit review date.

F.H. Exclusive of special evaluation and upon receipt of a satisfactory annual evaluation, the effective date for a merit increase shall be the first day of the pay period, which includes the employee’s anniversary date.

14.02.03 Longevity
Effective the pay period that begins on March 4, 2023, Uupon completion of ten (10) years of continuous regular service, employees shall receive a four and one-half five percent (4.55.0%) longevity pay increase.

Upon completion of fifteen (15) years of continuous regular service, employees shall receive an additional four five percent (45.0%) longevity pay increase for a total of eight and one-halften percent (8.5010.0%).

Effective the pay period that begins on March 7, 2020, uponUpon completion of twenty (20) years of continuous regular service, employees shall receive an additional two and one-halffive percent (2.505.0%) longevity pay increase for a total of eleven fifteen percent (1115%).

Longevity is calculated from the date of hire into a regular status position or a fully benefited special status position. It is understood that longevity pay is considered “additional compensation” for the purposes of PERS and tax computations.

14.03 Retirement/PERS

14.03.01 Employees Hired on or Before September 2, 2011 (Tier I) This section 14.03.01 shall apply to members hired on or before September 2, 2011, who are contributing members of CalPERS.

A. Final Compensation Based on the Single Highest Year
For purposes of determining a retirement benefit, final compensation for members covered by this section 14.03.01 shall be based on the single highest year, defined by CalPERS as any consecutive one-year period with the highest average pay rate and special compensation.

B. 3.0% @ 50 Pension Formula for Sworn Members
The 3.0% @ 50 pension formula shall be available to all sworn members covered by this section 14.03.01 who are contributing members of CalPERS.

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Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to members covered by this section 14.03.01.

C. 2.0% @ 55 Pension Formula for Non-Sworn Members
The 2.0% @ 55 pension formula shall be available to all non-sworn members covered by this section 14.03.01 who are contributing members of CalPERS.

Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to members covered by this section 14.03.01.

D. Required Employee Contribution
Sworn members covered by this section 14.03.01 will contribute the employee contribution amount established by CalPERS for the 3.0% @ 50 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

Non-Sworn members covered by this section 14.03.01 will contribute the employee contribution amount established by CalPERS for the 2.0% @ 55 pension formula. The required contribution amount was 7.0% as of the date of this MOU.

E. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning November 7, 2015 members covered by this section

14.03.01 will contribute an additional 5.00%. This amounts to a total employee contribution of 14.00% for sworn members and a total employee contribution of 12.00% for non-sworn members.

14.03.02 Employees Hired On or After September 3, 2011 (Tier II) This section 14.03.02 shall apply to employees hired on or after September 3, 2011 and prior to January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this section 14.03.02 shall be based on the member’s highest three year average, defined by CalPERS as any consecutive threeyear period with the highest average pay rate and special compensation.

B. 3.0% @ 55 Pension Formula for Sworn Members
The 3.0% @ 55 pension formula shall be available to all sworn members covered by this section 14.03.02 who are contributing members of CalPERS.

Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to members covered by this section 14.03.02.

C. 2.0% @ 60 Pension Formula for Non-Sworn Members
The 2.0% @ 60 pension formula shall be available to all non-sworn members covered by this section 14.03.02 who are contributing members of CalPERS.

Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to members covered by this section 14.03.02.

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D. Required Employee Contribution
Sworn members covered by this section 14.03.02 will contribute the employee contribution amount established by CalPERS for the 3.0% @ 50 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

Non-Sworn members covered by this section 14.03.02 will contribute the employee contribution amount established by CalPERS for the 2.0% @ 55 pension formula. The required contribution amount was 7.0% as of the date of this MOU.

E. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning November 7, 2015 both sworn and non-sworn members covered by this section 14.03.02 will contribute an additional

5.00%. This amounts to a total employee contribution of 14.00% for sworn members and a total employee contribution of 12.00% for nonsworn members

14.03.03 Employees Hired On or After January 1, 2013 (Tier III) This section 14.03.03 shall apply to employees hired on or after January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for members covered by this section 14.03.03 shall be based on the member’s highest three year average, defined by CalPERS as any consecutive three-year period with the highest average pay rate and special compensation.

B. 2.7% @ 57 Pension Formula for Sworn Members
The 2.7% @ 57 pension formula shall be available to all sworn members covered by this section 14.03.03 who are contributing new members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to members covered by this section 14.03.03.

Employees covered by this section 14.03.03 who are classic members as defined by CalPERS may be eligible for a different pension formula.

C. 2.0% @ 62 Pension Formula for Non-Sworn Members
The 2.0% @ 62 pension formula shall be available to all non-sworn members covered by this section 14.03.03 who are contributing new members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to members covered by this section 14.02.03.

Employees covered by this section 14.03.03 who are classic members as defined by CalPERS may be eligible for a different pension formula.

D. Required Employee Contribution
Sworn and non-sworn members covered by this section 14.03.03 will contribute half of the normal cost as established by CalPERS.

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In the event employee contribution rates are adjusted by CalPERS during the term of this MOU, the member contribution will be recalculated based upon the updated required member contribution rate established by CalPERS.

E. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning November 7, 2015 both sworn and non-sworn members covered by this section 14.03.03 will contribute an additional

5.00%.

14.03.04 All Employees
The City will provide the sick leave conversion benefit in accordance with California Government Code Section 20965.

The City shall maintain the IRS 414(h)(2) provision allowing the employee to defer State and Federal income taxes on their PERS contribution.

14.04 Overtime
The City desires to keep overtime work at a minimum but recognizes that from time to time it may be required. To the extent possible, employees will be given advanced notification.

1. Overtime hours described in subsection 4(a) and 5(a) below will be compensated at one and one-half times the employee’s base hourly rate. a. Overtime hours described in Section 14.10 Special Events will be compensated at two times the employee’s base hourly rate.

2. Fair Labor Standards Act (F.L.S.A.) overtime will be compensated at one and one-half times the employee’s regular rate of pay as defined by F.L.S.A.

3. Police Trainees
a. Overtime is defined as all authorized hours on paid status in excess of forty (40) hours in a workweek.
b. F.L.S.A. overtime is defined as all hours required by management and actually worked by the employee in excess of forty (40) hours in a work period as defined by the City.

4. Regular Personnel
a. For all employees other than Police Trainees, overtime is defined as all authorized hours on paid status in excess of the regularly scheduled work day and/or work week. Paid status includes sick, holiday, or vacation time used.
b. F.L.S.A. overtime is defined as all hours required by management and actually worked by the employee in excess of the non-overtime hours allowed in the work period. Pursuant to the 7K exemption under

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F.L.S.A., 171 non-overtime hours are allowed in a 28-day work period.

The City has the right to decide whether or not the 7K exemption, provided for under the F.L.S.A., shall apply to Police Officers and Sergeants. The City also has the right to select alternate work periods, as defined by the F.L.S.A. If the City exercises its right to invoke the 7K exemption, the Association maintains its right to meet and confer over the effects of the City’s decision on matters within the scope of representation.

5. Compensatory Time Off
a. Police Officer Trainees shall receive the first 53.34 hours of overtime accrued in the police academy at the rate of one and one-half times the hours worked, up to a total of eighty (80) hours of banked compensatory paid leave. All additional overtime in the academy shall be paid at the overtime rate as specified in the Police unit’s Memorandum of Understanding (M.O.U.).

In the event that Police Officer Trainees do not successfully complete the academy, any compensatory hours not used will be compensated in salary. b. The use of compensatory time off shall be in accordance with department policy and the FLSA. All regular employees may choose, in lieu of overtime payment, to have overtime hours worked converted to a compensatory time bank at the applicable overtime rate for the number of hours worked or guaranteed. The employees’ compensatory time bank shall not exceed one hundred (100) hours. Employee may elect to cash out accrued compensatory time anytime during the calendar year. All accrued and unused compensatory time during the calendar year will be paid out on the last pay date in December.

14.05 Working Out of Classification
Upon specific assignment by the Chief of Police or their designated representative, an employee may be required to perform the duties of a higher-level classification on a temporary basis due to a termination, vacation, leave of absence, workers’ compensation, or extended sick leave.

Assignments will be made with the following considerations:

1. All out-of-class assignments scheduled to last for an extended period of time (e.g., more than one pay period), must be implemented and approved on a Personnel Action Form (PAF). Assignments shall be given to employees who currently meet the stated minimum qualification of the higher-level classification. Employees appointed on this basis will receive out-of-class pay beginning on the first day of the assignment.

2. Qualified Police Officers may be directed by the management personnel on duty to assume the duties of an absent Police Sergeant on an “acting” basis for a given shift. Such assignments can only be made after the officer has been qualified and authorized on a premium pay form to serve as acting Sergeant.

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3. An employee must spend a majority of the scheduled shift performing the duties of the higher-level classification. Out-of-class or acting pay will be the next highest pay step in the classification to which the employee is assigned. In all cases, such pay will not be less than a five (5) percent increase.

In accordance with the Public Employees’ Pension Reform Act (PEPRA), working out of classification pay is not pensionable compensation for employees who are “New Members” of CalPERS, as defined by California Government Code Section 7522.04(f).

14.06 Call-back

14.06.01 Definition
Call-back is defined as any time including court appearances an employee is directed to work and actually works for a period not contiguous with their regular shift. For purposes of this Memorandum, the word contiguous will mean any more than fifteen (15) minutes after the end of shift. If an employee is called in less than four (4) hours prior to their regular shift, they will receive overtime pay only up to the start of the regular shift. If an employee, who was called back to work and has completed their assignment and left work is again called back to work, they will not receive another minimum if the time of return is within the previous callback minimum.

An employee required to attend court under this provision, will not be required to perform additional station work if the court assignment is less than four (4) hours.

When an employee is called back to work for any reason including a court appearance while the employee is on pre-approved time off using vacation, holiday, or compensatory hours, the employee will be compensated based on these call-back rules.

When an employee has completed an assigned shift, or is on a regular day off, and is called by a superior officer or anyone acting at the direction of a superior officer, the Chief of Police or their designee, such employee shall receive compensation in the form of overtime pay. Compensation will be paid in one quarter (.25) hour increments based upon the duration of the call. Such pay shall not be required for telephone calls involving staffing availability, shift assignment, or shift coverage. Messages left on an employee’s answering machine shall not qualify for payment unless the superior officer expressly requires the call be returned.

14.06.02 Compensation
All callback hours shall be paid at the applicable overtime rate. A minimum of four (4) hours of overtime compensation shall be paid for all callback periods of less than four (4) hours.

14.07 Standby
Police Officers and Sergeants requested by police commanders to remain at home and available for emergency call-back duty shall be compensated at time and one-half with four (4) hours minimum.

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14.08 Police Investigations

14.08.01 Investigations Premium Pay
A. Officers, and Sergeants, and Community Service Officers assigned to the Administration Division, Detective Investigation Section, will receive five percent (5%) special compensation added to their base pay.

B. Officers and Sergeants assigned to the Operations Division, Traffic Investigation Section, will receive five percent (5%) special compensation added to their base pay. Officers and Sergeants who receive this 5% special compensation when assigned to this Section are not eligible to receive the Motorcycle Patrol Premium as described in Section 14.14 of this MOU.

14.08.02 Rotational Duty Assignment
A. Officers and Sergeants assigned to the Administration Division, Detective Investigation Section will be required to be on duty assignment for call-back on a seven-day period rotational basis. During periods of duty assignment, officers will be required to have an investigation vehicle and associated equipment immediately available and either keep the Communications Center advised of their location or maintain call-back availability by carrying a pager.

B. Officers and Sergeants assigned to the Operations Division, Traffic Investigation Section, will be required to be on duty assignment for call-back on a rotational basis. During periods of assignment, officers will be required to have associated equipment immediately available and maintain call-back availability.

14.09 Special Duty Pay
Unit employees scuba diving in the line of active duty (not training) and on orders from a commanding officer shall be compensated at double-time and one-half their hourly rate, with a minimum of four (4) hours. Sufficient training as determined by the Chief of Police within the overall training program of the department shall be provided at City expense for unit employees assigned such special duty.

14.10 Special Events
A special event is defined as an assignment in which the City is reimbursed by an event’s sponsor, not the City, through the Finance Department, for police services.

Officers assigned to cover special events will be paid a minimum of four (4) hours overtime at two times their base hourly rate effective 1/1/2020. Officers assigned to cover a special event during their regularly scheduled shift, shall be compensated on a “straight time” basis for all hours which fall within their regular shift. Seniority sign-up will apply to all events not sponsored (all or in part) by the City of Santa Cruz. All other employment not meeting the guidelines of the above policy will be considered outside employment and will be subject to approval in accordance with Departmental policy.

14.11 Training Officer

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At least seven (7) Police Officers and one (1) Community Service Officer, as operational needs dictate and as determined by the Chief of Police, may be assigned as Training Officers and shall receive a 5% differential of base pay for the duration of this assignment. A maximum of two (2) Sergeants may also be assigned as Training Officers in addition to the eight (8) Officers referenced above and shall receive a 5% differential of base pay for the duration of this assignment.

If the Chief of Police determines eight (8) Training Officers are insufficient due to the employment of new officers, this limit may be exceeded by the ratio of one Training Officer to one new hire. The appointment of the additional Training Officers is subject to the approval of the City Manager.

In the event that an officer who is not regularly assigned as a Training Officer - but is a POST certified Training Officer - is assigned a trainee for an entire shift, they will also receive a 5% differential of base pay for that shift. The department will make every reasonable effort, however, to assign all trainees to regularly assigned Training Officers.

This section does not apply to trainees who are assigned only to complete a “ride-along” with an officer.

14.12 Tuition Reimbursement
The City shall reimburse employees up to $500 per fiscal year for tuition and books upon successful completion of City-approved college or university courses or other course directly related to an employee’s job duties.

To be eligible for reimbursement, employees must receive approval of the Chief of Police prior to attending classes and comply with applicable department and City regulations.

Effective March 7, 2020, the City will contribute $4,000 per year towards the tuition for a POA member to attend the West Coast Post Trauma Retreat. Any funds which are not utilized will be rolled over to the following year.

14.13 Bilingual Pay
Upon the recommendation of the Chief of Police and approval of the Human Resources Director, the City shall provide a monthly allowance five percent (5%) differential of base pay for bilingual speaking skills. To qualify for this compensation, employees must be certified by the Human Resources Director as conversant in a foreign language utilized frequently in the line of duty.

14.14 Motorcycle Patrol Premium
Officers and Sergeants regularly assigned by management to motorcycle duty will receive five percent (5%) special compensation added to their base pay. Officers and Sergeants are not eligible to receive Traffic Investigations pay (MOU Section 14.08.01-B) when assigned to motorcycle duty.

The City shall provide, replace, or resole motorcycle boots and any other safety equipment

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approved by the Chief of Police to all employees as determined necessary by management who are approved to ride a motorcycle in an enforcement capacity.

14.15 Shift Differential
Employees whose regularly scheduled shift includes f i v e ( 5) or more hours between the hours of 12:00 midnight and 7:00 a.m. shall receive a two and one half percent (2.5%) shift differential in addition to their regular base rate of pay.

Shift differential shall be paid for entire shifts worked and will not be paid for hours not worked, regardless of paid status.

14.16 Uniform Allowance and Replacement
The Association agrees that the appearance and cleanliness of unit employees shall be maintained in keeping with departmental standards. To this end the department will maintain a uniform purchase for new hires, replacement and cleaning program. The department will maintain administration procedures for the purchase and replacement of uniforms. In addition, the City and Association agree unit employees will comply with departmental standards with regard to appearance and cleanliness. The City will maintain an account at a dry cleaning establishment located within the city of Santa Cruz. For its part, the Association agrees its members will (a) deliver and retrieve uniforms from the dry cleaning establishment, and (b) not do so while in uniform or a marked Police or City vehicle. The City agrees to consider the use of a dry-cleaning pick-up and delivery service, if it is cost effective.

The City agrees to replace uniforms on an as-needed basis, as determined by the Chief of Police. It shall be the responsibility of each unit employee to arrange for purchasing, fitting, pick up, delivery, return, repair and control of uniform items.

The parties agree that for PERS reporting purposes, the value of the uniform and cleaning service is five hundred and twenty dollars ($520). Employees shall pay the employee PERS cost of the value of cleaning service. Such payment shall be made through a payroll deduction out to her-his paycheck each pay period. The amount of the deduction shall be determined by multiplying the employee’s PERS contribution rate by twenty dollars ($20).

14.17 Personal Property
Should a unit employee, while in the line of duty damage their watch, prescription eyeglasses, or other personal property authorized for use by the department, the City agrees to reimburse employee for the cost of replacement (in kind) up to $150 per incident. In the event the cost of repair or replacement exceeds $150, the employee may be reimbursed for any additional sums that are found to be reasonable. The reasonableness of any such additional sums shall be determined by the Chief of Police. The decision of the Chief of Police is final and non-grievable.

14.18 K-9 Duty

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Up to two (2) employees may be assigned by the Chief of Police to the K-9 unit as handlers.

Compensation for this assignment shall be in accordance with the agreements and procedures included in Exhibit D (K-9 Agreement) of this Memorandum of Understanding.

14.19 Certification/Education Incentive
Sworn personnel (Police Officers and Sergeants) are eligible for the following education incentive compensationone certification or education incentive, based on the highest qualifying degree or POST certificate held. Education and POST incentives shall not be combined or stacked.

A. Police Officers- Education or POST Certification
Police Officers are eligible for one of the following incentives:

2.5% differential of base pay for AA/AS Degree;or or Intermediate POST Certificate - 2.5% differential of base pay
5% differential of base pay for BA/BS;or Degree or Advanced POST Certificate - 5% differential of base pay

2.5% differential of base pay for Intermediate POST Certificate; or

5.75% differential of base pay for Advanced POST Certificate B. Police Sergeants- Education or POST Certification
Police Sergeants are eligible for one of the following incentives:

2.5% differential of base pay for AA/AS Degree; or or Advanced POST Certificate - 2.5% differential of base pay
5% differential of base pay for BA/BS Degree;or or POST Supervisory Certificate - 5% differential of base pay

5.75% differential of base pay for Advanced POST Certificate

5.75% differential of base pay for Supervisory POST certificate Police Officers with an Advance POST Certificate who promote to Police Sergeant will be allowed to maintain their Advance POST incentive pay for a maximum of twenty-four (24) months to enable them to achieve eligibility criteria for a POST Supervisory Certificate.

Non-sworn personnel (Community Service Officers) are eligible for the following education incentive compensation:

C. Community Service Officer (Non-Sworn)
Community Service Officers are eligible for one of the following incentives:

2.5% differential of base pay for AA/AS Degree Degree – 2.5% differential of base pay
5% differential of base pay for BA/BS degree – 5% differential of base pay Employees are only eligible for one incentive program and these pay differentials will not be combined. The certification/education incentive is reportable as income to PERS.

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14.20 Overpayments
The City will not attempt to recover overpayments made to employees as a result of an error made by the City which are over twelve (12) months old.

A. Overpayments
If an overpayment or unauthorized payment has been made to a City employee, the City shall notify the employee in writing and supply the employee with the documentation used to determine the overpayment.

If the employee contends that any portion or the entire amount is not owed, they may request a meeting with the City to attempt to resolve the disagreement. The employee may have a representative attend such meeting(s) with them.

B. Repayment of Funds
An employee will pay no penalties, fees, or interest as a result of the overpayment when the City and employee mutually agree upon how the repayment will be made.

The employee shall have the right to select one of the following options for repayment:

1. Lump sum payment with the date mutually established by the employee and the City (lump sum payments must be made if the total amount due is five percent (5%) or less than the employee’s biweekly gross salary).

2. Biweekly installment payments through payroll deduction (installment payments must be a minimum of ten dollars ($10) and repayment must be completed within twenty-six (26) pay periods).

3. Any other repayment arrangement mutually agreed upon between the City and the employee.

The final agreement on the repayment will be committed to writing (including the lump sum payment date, or the biweekly amount, and the beginning and ending date of the installment plan identified).

C. Referral to Collections
The City may refer an employee to a collection agency or seek payment only when the employee, after being duly notified of the overpayment and having had the opportunity to review the relevant documentation, refuses to agree to a repayment of the amount owed. The employee will be notified of the referral and the City reserves all its rights to seek repayment and pursue all remedies under law including interest as it would for any other debtor.

14.21 Departmental Technology Coordinator Differential
An employee assigned as a Departmental Technology Coordinator by their Department Head will receive one hundred thirty dollars ($130) premium pay per month during the period of such assignment. Such differential will become effective the first full pay period of the assignment.

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SECTION 15.00 – HOLIDAYS

15.01 Holiday Hours & Scheduling
All employees shall be granted one hundred four twelve thirty (104112130) hours of holiday on the first pay day after the start of the fiscal year. This is to reflect the paid holidays currently observed by the City.

New Year’s Eve Day (1/2 day)
New Year’s Day
Martin Luther King’s Birthday
Cesar Chavez
President’s Day
Memorial Day
Independence Day
Labor Day
Juneteenth
Veterans’ Day
Thanksgiving Day
Friday after Thanksgiving
Christmas Eve (1/2 day)
Christmas Day
When a holiday falls on Sunday, the following Monday shall be observed. When a holiday falls on Saturday, the proceeding Friday shall be observed.Employees scheduled to work on any of the above-listed holidays, may schedule the day off subject to the Department Time Off Policy.

Employees required or approved to work on any of the above-listed holidays or employees whose regular day off falls on a holiday, shall receive equivalent time off at a later date.

Whenever possible, employees are expected to observe the City’s holiday schedule by taking the actual holidays off, with pay.

15.02 Holiday Bank
Employees shall be credited with one hundred four twelve (104112) hours of holiday pay on the first day of the pay period that includes July 1 of each year. This amount will be prorated for new hires.Effective July 1, 2027, employees shall accrue holiday pay up to a maximum of one hundred thirty (130) hours per calendar year, at a rate of 5.00 hours per pay period. Employees will be permitted to use up to the maximum amount available. Upon separation, employees shall receive the value of their unused banked holiday leave.

Accumulation of holidays shall not exceed one hundred four twelve thirty (104112130) hours.

15.03 Holiday Carry-Over
Effective July 1, 2027, On on the last pay day in June each year, up to forty eighty

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(4080) hours of unused holiday time will transfer to employees’ vacation balances, not to exceed the vacation accrual maximum set out in Section 16.02-Rate of Maximum Vacation Accrual.

15.04 Eligibility
To qualify for holiday pay, an employee must be on paid status on their last scheduled workday before the holiday and their first scheduled day after the holiday.

SECTION 16.00 - VACATION

16.01 Accrual
Vacation accrual will be on a monthly basis beginning at date of hire. Employees must be on paid status at least 50% of the pay period to accrue vacation leave. Upon authorization by a manager, a probationary employee may use accrued vacation leave, with an equal, corresponding extension of the probationary period of regular hours worked.

Annual vacation accrual shall be based on continuous service, as follows:

Up to five (5) years: Eighty (80) hours
Six (6) to ten (10) years: One hundred twenty (120) hours Eleven (11) or more years: One hundred twenty (120) hours, plus eight (8) hours for each year of service after ten (10) years, to a maximum of one hundred sixty (160) hours.

16.02 Rate of Maximum Vacation Accrual
Effective December 23, 2023, vVacation accumulation may not exceed twice the annual rate of accrual, unless prior written authorization for a specified amount of hours and a specified amount of time is received from the Chief of Police and the Human Resources Director. Employees will receive at least sixty (60) days’ notice prior to exceeding their maximum accrual rate.no more than three times the annual maximum through March 13, 2026. Effective March 14, 2026, vacation accumulation may exceed no more than two times the annual maximum.

16.03 Sell Back of Vacation
Employees with at least five (5) years of service may designate up to forty (40) hours of vacation time as cashable in the next calendar year. In order to take advantage of this option, a balance of at least forty (40) hours of vacation must be maintained after the vacation cash out.

An employee must irrevocably elect by December 1st each year to receive any of the annual leave hours they will earn in the following calendar year as cashable. The City will create an account where the employee’s designated cashable accruals will be credited. This will be kept separate from the employee’s annual vacation leave accrual account. The employee’s election must designate the amount of their annual vacation leave earned each pay period which they wish to have credited. Starting with the first pay period of the

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calendar year, the cashable annual vacation leave will be credited with the designated amount of annual vacation leave each pay period until the employee’s full election has been reached not to exceed forty (40) hours.

Any annual vacation leave being earned in a pay period which is not credited to the employee’s cashable account will be deposited in their regular annual vacation leave account.

Elections will not carry over from one calendar year to the next calendar year. An employee who fails to elect by December 1st each year, will be deemed to have elected not to participate and they will be prohibited from receiving any vacation cash out.

All vacation hours designated as cashable must be paid out to the employee in the calendar year in which these hours are earned. An employee cannot request the pay out of any vacation hours until those hours have been earned and accrued in their account. Since no vacation pay out can carry over to the following year, the City will initiate a pay out of all hours accrued no later than the last pay date of the year unless the employee has requested those hours to be paid out pursuant to the above language.

16.04 Injury or Illness While on Vacation
An employee who becomes ill or is hospitalized while on vacation and provides a written statement from a licensed medical practitioner to this effect shall have the period of illness charged against sick leave and not vacation leave.

SECTION 17.00 - SICK LEAVE

17.01 Definition
The purpose of this article is to provide paid leave time to be used by employees in the event of their need for preventive healthcare, care of an existing health condition, as victims of domestic violence, sexual assault or stalking, and for the necessity of designated family members for the reasons specified below in Section 17.02.01-Family Sick Leave In the event that the City exercises its right to withhold immediate payment of industrial disability benefits, and until such time that a coverage determination is made, employees may elect to utilize accrued paid leave, including sick leave, for the interim period.

17.02 Accrual and Use
Full-time employees in paid status at least fifty percent (50%) of the pay period shall accrue sick leave at the rate of eight (8) hours per month. An employee must be in paid status for at least fifty percent (50%) of a pay period to earn their sick leave accrual.

Part-time employees shall accrue sick leave on a pro-rated basis, given the ratio of their budgeted work schedule to full-time (e.g., all employees working in a twenty (20) hour/week position shall receive four (4) hours of sick leave each month.

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When accrued sick leave must be used, an employee will notify their immediate supervisor of the leave and its probable duration, if known, at least two (2) hours prior to the regular scheduled starting time. When the employee’s need to use sick leave is foreseeable, the employee must provide reasonable advance notice. Sick leave shall not be granted unless such report or advance reporting has been made.

Employees shall be eligible for the sick leave advance program as specified in the Personnel Rules and Regulations rule #10.8-Sick Leave Depletion Allowance.

17.02.01 Family Sick Leave
Up to forty-eight (48) hours of accrued sick leave per fiscal year may be used when the employee’s personal attendance is required to care for an immediate family member for preventive care, care of an existing health condition, or if they are a victim of domestic violence, sexual assault, or stalking. For the purposes of this provision, immediate family is defined as a spouse, child, parent, sibling, registered principal domestic partner, step-parent, grandparent, grandchild, or other close relation residing in the employee’s household. This forty-eight (48) hour limitation may be extended by the Human Resources Director with good cause.

17.02.02 Bereavement Leave
An employee may utilize accrued sick leave for purposes of bereavement. A leave of absence with pay of up to forty (40) hours per incident is available to an employee in the event of a death in the employee’s family which shall, for the purpose of this article, include spouse, parent, child, grandparent, sibling, parent-in-law, sibling-in-law, registered principal domestic partner, grandchild of the employee or spouse, child-in-law, grandparent-in-law, or a close relation residing in the employee’s household. In rare cases when the individual has no legal relationship other than a foster or step-parent, the Human Resources Director or City Manager has the discretion to approve that leave upon application. Additional leave equivalent to one (1) scheduled work week, chargeable to accrued sick leave, may be taken by an employee who needs additional time off in connection with a death in the family (as defined in this article).

17.02.03 Personal Business Leave
In accordance with departmental time off procedures, employees may use up to twentyfour (24) hours per fiscal year of their accrued sick leave for the purpose of personal business which shall not include recreational activities.

17.03 Limitations
The Chief of Police may require an employee to submit verification of an illness or injury from a licensed medical practitioner prior to any use of sick leave being authorized.

In cases of chronic absenteeism or medical work restrictions, the Chief of Police may have an employee examined by a City-selected physician. The City shall pay the cost of the any such medical exam.

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17.04 Sick Leave Incentive Program

1. On the last paydate in June each year, employees who have accumulated more than four hundred (400) hours of sick leave must choose one of the following options:

A. To receive a cash pay-off, or equivalent vacation hours, of all hours in excess of four hundred (400) at the rate of thirty-three percent (33%) of their current rate of pay.

B. To “bank” all hours in excess of four hundred (400). Banked hours may not later be converted to cash and will be used as sick leave only when all other sick leave is exhausted.

2. Employees who have an excess of four hundred (400) hours of unbanked sick leave at the time of separation from the City will receive a payoff of all hours over four hundred (400) hours at the rate of thirty-three percent (33%) of the employee rate of pay.

3. Employees who retire and are eligible for retiree health coverage, pursuant to Section

19.04-Retiree Medical Incentive of this agreement, shall also be eligible to receive the equivalent dollar credit for retiree health coverage at the rate of thirty-three percent (33%) of their current rate of pay for all unused sick leave hours. This amount will be maintained by the City for the reimbursement of retiree health coverage. (This section will not be available to employees who chose to utilize the PERS sick leave Service Credit option.)

17.05 Emergency Illness Leave
Pursuant to Side Letter Agreements dated March 2009 and August 2010, employees who were employed as of March 10, 2009 were provided one-hundred-four (104) hours of Emergency Illness Leave with the following two restrictions:

1. Emergency Illness Leave hours could be used only when all other sick leave is exhausted, and

2. In accordance with CalPERS rules and regulations, Emergency Illness Leave is non-reportable compensation and cannot be converted to cash.

During the term of this MOU, restriction #1 above is rescinded and restriction #2 remains in place.

SECTION 18.00 - LEAVES OF ABSENCE

18.01 Military Duty
An employee who is a member of the National Guard or any reserve component of the

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armed services of the U.S. shall be granted up to thirty (30) days per year of paid leave for any active duty scheduled during the employee’s regular work hours. The employee must give their supervisor forty-eight (48) hours advance notification of the need for such leave and must present a copy of the “notice” for such duty. All other military leaves shall be granted pursuant to relevant state and federal statutes.

18.02 Workers’ Compensation
A non-safety employee who is unable to work due to a work-incurred illness or injury that is compensable under the California Workers’ Compensation Act shall continue to receive the full amount of their salary during the first thirty (30) calendar days of such absence.

City leave payments so made to the employee shall be decreased in the amount of any temporary disability payments received by the employee so that the employee shall not receive total payments in excess of their full salary.

After the first thirty (30) calendar days of such leave, an employee who is entitled to continued temporary disability payments may use accumulated sick leave or vacation to supplement such payments to an amount equal to their full salary. After depleting of any accrued paid leaves the employee shall be eligible for benefits only in the amounts prescribed by the workers’ compensation laws.

Safety employees shall receive workers’ compensation benefits pursuant to Section 4850 of the Labor Code.

Light duty assignments may be made in accordance with medical authorization.

18.03 Light Duty
The City recognizes the importance of providing support and encouragement to police department employees who are recovering from an injury or illness in an effort to assist in making a complete and healthy recovery. Therefore, the City agrees to temporarily provide at least two (2) light duty assignments which are less strenuous and less hazardous for police department employees who are recovering from an injury or illness, including pregnancy.

The availability of additional assignments is at the sole discretion of the Chief of Police.

Priority will be given to accommodating temporary light duty requests from employees recovering from work-related injuries or illnesses. The intent of a temporary light duty assignment is to provide modified work duties which are beneficial to the employee by keeping them productively active, involved, and informed in department activities, and beneficial to the City by the employee’s work contributions and involvement during the recovery period. This is not intended to deprive the employee of using accumulated sick time if they so desire. The temporary assignment will be consistent with the employee’s physical abilities and department needs. The modified duties will reflect recommendations and limitations prescribed by the attending physician. Following are conditions for providing an employee with a light duty assignment:

1. That the temporary assignment may result in a change of shift but not a change in the employee’s schedule as defined in Section 13.02 (4 Day/10 Hour Plan). An employee may lose shift differential pay as a result of this shift change.

2. That the duties to be performed in said temporary assignment shall be those designated

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by the Chief of Police provided that the duties shall be consistent with the written recommendations of the employee’s physician.

3. Said employee shall not be increased or reduced in pay or benefit solely by virtue of said temporary assignment but may forfeit incentive pays if they are no longer eligible.

4. Provided that the City may verify said disability by having said employee examined by a physician of City’s choosing at City’s expense.

5. If an employee on temporary light duty assignment is required to remain available by radio, cell phone, or other means, during their meal break then the meal break will be paid. If an employee on temporary light duty assignment is not required to remain available as above during their meal break, then the meal break will be unpaid. Unpaid meal breaks will not exceed thirty (30) minutes.

18.04 Medical or Personal Leave
Leave of absence without pay may be granted to an employee in a case of extended illness or disability, personal emergency or other situation where such absence would not be contrary to the best interests of the City. Such unpaid leave will only be granted after an employee has depleted all appropriate paid leaves. The department head may grant a leave of absence of up to thirty (30) consecutive calendar days; additional leave may only be granted by the City Manager. No vacation, holidays, sick leave, or any other paid benefit shall be accrued or earned during such leave. All requests for unpaid leaves of absence must be made in writing and include specific begin and end dates for the leave.

Denials of unpaid leaves of absence shall be given in writing and contain the reason therefore.

18.05 Pregnancy Disability Leave
An employee may take a leave of absence of up to four (4) months in length for the purpose of pregnancy disability leave. The City may request a licensed medical practitioner’s opinion regarding any work restrictions that may exist prior to or after delivery.

Requests for pregnancy disability leave must be made in writing to the Chief of Police at least thirty (30) days in advance of the anticipated starting date. Such requests must include specific begin and end dates for the leave. Starting dates should be as accurate as possible barring any unforeseen medical issues related to the pregnancy or earlier or later birth than expected. Any requests for extension of pregnancy disability leave must be made in writing to the Chief of Police at least ten (10) calendar days prior to the scheduled end of the existing leave.

The employee may elect to use any appropriate paid leave either before or after an approved pregnancy disability leave, within the use limitations of these leave provisions. No combination of pregnancy disability leave, family leave, sick leave, or vacation may exceed one year total or seven (7) months post-partum.

Any additional post-partum leave may be approved by the City Manager or his designee

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after consideration of the nature of the request and the operational needs of the department.

Upon return to work, the employee shall be assigned to the same position but not necessarily to the same assignment.

18.06 Family Leave
In accordance with the Federal Family and Medical Leave Act and the California Family rights Act, the City will grant job protected unpaid family and medical leave to eligible employees for up to twelve (12) weeks, (continuous or cumulative), per twelve-month calendar year period. Effective January 1, 2016, the City will begin using a “rolling” twelve (12) month period measured backward to establish the 12-month period. Family leave may be taken for any one or more of the following reasons:

A. The birth of a child and in order to care for such child or the placement of a child with the employee for adoption or foster care (leave for this reason must be taken within the twelve-month period following the child’s birth or placement with the employee); or
B. In order to care for an immediate family member (spouse, domestic partner, child, or parent) of the employee if such immediate family member has a serious health condition; or
C. The employee’s own serious health condition that makes the employee unable to perform the functions of his/her position.

D. Military family leave.

Conditions covering the leave shall include the following:

E. Eligible employee means having been employed by the City for twelve (12) months and has worked for at least one thousand two hundred fifty (1,250) hours during the twelve (12) month period immediately preceding the commencement of the leave;
F. Medical verification is required for employee or ill family member for medical leave period;
G. Employees are required to give at least thirty (30) days written notice in the event of a foreseeable leave. In unexpected or unforeseeable situations, an employee should provide as much written notice as is practicable.

H. Employees are required to use accrued vacation as a part of the family leave period.

Use of sick leave is not required, but may be used pursuant to the applicable provisions of this Memorandum of Understanding.

I. Pregnancy disability is not covered under this section and is covered by the California Fair Employment and Housing Act which allows up to four (4) months of leave depending on the actual disability (see Section 18.05).

J. Employees retain “employee” status while on family care leave. The leave does not constitute a break in service for purposes of longevity, and/or seniority. Upon

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return to work, employee will be reinstated to an equivalent position with equivalent pay and benefits.

K. Any request for additional leave may be made pursuant to Section 18.04.

L. Any other conditions or interpretations of this leave shall be based upon the Federal Family and Medical Leave Act and the California Family Rights Act.

18.07 Continuation of Insurance Benefits during Unpaid Leaves of Absence City-sponsored insurance benefits may be continued during unpaid leave of absence under the following conditions:

18.07.01 Personal Leave
The City shall continue to pay benefit premiums during a personal leave of thirty (30) calendar days or less.

For leaves of more than thirty (30) calendar days the following shall apply:

Employees may continue premium payments at their own cost, in accordance with appropriate PERS or other appropriate medical plan provisions.

18.07.02 Family Leave
Benefit premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under the current law, the City will continue to maintain coverage under the same conditions as coverage would have been provided if the employee had been continuously employed during the leave period.

18.08 Blood Donations
An employee may be granted paid release time of up to a maximum of one (1) hour for donating blood during regularly scheduled hours of work. The length of such leave must be approved by the supervisor and is dependent upon the nature and scheduling of the work performed and the travel distance required.

18.09 Absence for Examination
An employee will be granted paid release time to participate in any part of an examination process for promotion or transfer within the City workforce that is scheduled during the employee’s regular hours of work. The employee shall notify their immediate supervisor twenty-four (24) hours in advance of such an absence. In the event operational necessity as determined by the Chief of Police precludes an employee from being granted paid release time to participate in any part of an examination process, the City shall make accommodations to offer the affected employee an opportunity to complete the testing process.

SECTION 19.00 - BENEFITS

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19.01 Medical Plan
The City will provide medical insurance through the California Public Employees’ Retirement System (CalPERS). The City will contribute an amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA).

In accordance with IRS Code Section 125, the City will provide a flexible benefits plan (“cafeteria plan”) to all eligible employees. If an employee elects to participate in a medical plan, the maximum City contributions to the cafeteria plan is the cost of the Blue Shield Access+ HMO Plan (for Region 1) less the following employee contribution amounts, effective February 22, 2020:

Employee Only: $46.50 per pay period
Employee and One Dependent: $65.40 per pay period
Family: $69.00 per pay period
In no event will the maximum monthly City contribution exceed the premium for the plan in which the employee is enrolled. In no event will employees be credited with and receive cash back based on the plan chosen.

These pre-tax contributions are made during pay periods where employee deductions for health care benefits are taken (24 pay periods annually).

19.01.01 Optional Benefits
Through the cafeteria plan, employees may enroll in the following optional benefits and elect to pay premiums on a pre-tax basis:

1. Medical reimbursement account (MRA)

2. Dependent care assistance plan (DCAP)

3. Cancer and Critical Illness Protection Insurance
Employees may also enroll in the following optional benefits and elect to pay premiums on a post-tax basis:

4. Additional life insurance

5. Accident protection insurance

6. Long term care insurance
Employees may elect to waive City medical coverage and receive a cash benefit. In order to receive the medical waiver benefit, the employee must provide proof to the City of other current medical coverage. Full-time employees who waive medical coverage are eligible to receive $200 per month; part-time employees shall receive a pro-rated amount, based upon their full-time equivalency (FTE). The medical waiver amount may be applied toward the purchase of any pre-tax or post-tax optional benefits, or paid as a taxable cash benefit.

Employees receiving the medical waiver benefit must notify the Human Resources Department if they cease to be covered by any other medical plan, thereby making them ineligible for the medical waiver benefit.

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19.02 Principal Domestic Partners
The City will provide medical, dental, and vision benefits to employees with Principal Domestic Partners equivalent to those provided to an employee’s spouse. Employees may enroll their eligible Principal Domestic Partners and the eligible dependents of their Principal Domestic Partners subject to eligibility requirements established either by CalPERS or the City and subject to tax regulations of the State of California and the Internal Revenue Service of the United States government.

19.03 Retiree Medical Plan
Covered employees who retire under the provisions of the City’s contract with CalPERS, are currently eligible to continue CalPERS medical coverage. The City will continue to contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA).

The City contribution will be based on an annual CPI adjustment as determined by CalPERS.

19.04 Retiree Medical Incentive
Employees currently on the City’s retiree medical plan and future covered employees who receive a retirement from PERS and have at least five (5) years of continued service with the City and are at least fifty (50) years of age will receive a retiree medical incentive in the amount of $139 per month in addition to the City’s contribution listed in Section 19.03 (Retiree Medical Plan). This incentive will continue as long as the employee continues PERS medical coverage through the City of Santa Cruz and until such time as the retiree is eligible for Medicare (currently age 65) or other federal or state health programs, solely on account of age. Employees shall remain eligible for the retiree medical incentive even if their service retirement is classified or reclassified as a disability retirement.

Retirees eligible for the PERS retiree incentive listed above, with more than twenty (20) years of City service, will have their medical incentive increased to 75% of the cost of the employee-only coverage of the second highest PERS HMO plan from only among those plans available in Santa Cruz County at the time of ratification of this agreement, less the contribution listed in Section 19.03 (Retiree Medical Plan).

19.05 Dental and Vision Program
The City shall provide a dental plan for employees and their eligible dependents at no premium cost to employees with the following minimum benefit provisions:

In-Network Out-of-Network
Annual Deductible None None
Annual Benefit $2,500 per person $2,500 per person
Maximum, Excluding
Orthodontia for Children
Preventative 100% 100%

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Basic Benefits 90% 85%
Prosthodontic Benefits 60% 60%
Orthodontia 50% up to $2,500 50% up to $2,500
lifetime maximum per lifetime maximum per
person, up to age 23 person, up to age 23
The City shall provide a vision plan for employees and their eligible dependents at no premium cost to employees with the following minimum benefit provisions:

Co-pays $7.50 (does not apply to contacts)
Exam 100% every 12 months
Prescription Lenses 100% every 12 months
Frames 100% up to$105 plus 20% off any out-ofpocket costs every 24 months Contacts 100% (in lieu of glasses) up to $100 every 12 months

19.06 Long Term Disability
The City shall contribute the full cost of the City-sponsored long-term disability program.

This benefit shall be considered taxable income.

19.07 Life Insurance
The City shall contribute the full cost toward the following City-sponsored term life insurance program:

Basic Life: $50,000

19.08 Counseling Services
a. Critical Incident Stress Debriefing (CISD)
The City agrees to provide adequate funding for the duration of this contract so as to make available the necessary Critical Incident Stress Debriefing counseling utilizing the service of the present provider, except that the City may change providers after consultation with the Police Officer Association. b. Psychological Counseling
The City agrees to provide sufficient funding for the duration of this contract for psychological counseling services which will address duty related stress/trauma. Counseling services made available will also include an alcohol abuse treatment component. Maintenance of confidentiality will be held within the legal confines of the client-therapist relationship. The provider shall supply, on an annual basis, all current documentation to confirm appropriate credentials and liability coverage. The provider of this service shall be mutually selected by the City and the Police Officers’ Association.

SECTION 20.00 - EMPLOYER RESPONSIBILITY

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In case any officer is named in a civil suit resulting from their official duties with the City, the City will defend such officer within the limit of the law.

SECTION 21.00 - VESTS
The City agrees to provide safety vests for Police Officers, Sergeants, and Community Service Officers. Police Officers and Sergeants agree to wear department issued fitted safety vests at all times while in uniform. The wearing of safety vests shall be optional for officers assigned to work in plain clothes. Upon the receipt of sufficient medical evidence, an employee may be exempted from this provision by the Chief of Police.

SECTION 22.00 - SERGEANT PROMOTIONAL EXAM
When a promotional eligible list (as defined in the Personnel Rules and Regulations) is used to fill a Sergeants position and that promotional list includes employees represented by this agreement, the Human Resources Director shall certify the top five (5) eligibles, in alphabetical order, if there be that number, on the relevant promotional list to the Chief of Police. If there be more than one (1) vacancy in the same class, the Human Resources Director shall certify one (1) additional eligible for each additional vacancy, if there be candidates available on the eligible list.

SECTION 23.00 - EMERGENCY MEALS
Employees will be entitled to emergency meals in accordance with current practice and relevant department and City regulations.

SECTION 24.00 - GRIEVANCE PROCEDURE

24.01 Purpose
To assure prompt and fair treatment of employee grievances related to employment. Any employee covered by this Memorandum may file a grievance.

24.02 Definition
A grievance is defined as an alleged violation, misinterpretation, or misapplication of the provisions of this Memorandum, the City’s Personnel Rules and Regulations, or the department’s general orders.

24.03 Limitations

1. A grievant may be represented by any representative of their choosing in preparing and presenting a grievance.

2. No reprisal shall result against any employee who presents a bona fide grievance under this procedure.

3. Time limits may be extended by written mutual agreement of the parties.

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4. A grievance shall be considered settled in favor of the other party, if at any step, a decision is not rendered or appealed within the specified time limit.

5. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

24.04 Procedures
Step I
The grievant will first attempt to resolve the grievance through informal discussions with successive levels of supervision beginning with their immediate supervisor through the chain of command exclusive of the Chief of Police. These discussions must be initiated within ten (10) workdays of when the employee knew, or reasonably should have known of the incident upon which the grievance is based. Every attempt will be made by the parties to settle the issue at this level.

Step II
If the grievance is not resolved through the informal discussions the employee may, within ten (10) workdays after the informal discussion, submit a written appeal to the Chief of Police.

The written appeal must contain in clear, factual and concise language:

1. A brief statement as to the date of the occurrence on which the grievance is based and the facts as the grievant sees them.

2. The rule, regulation, act, or law enforcement code of ethics on which the grievance is based.

3. The action the grievant believes will resolve the grievance.

4. Signature of the employee.

The Chief of Police shall have ten (10) workdays following receipt of the appeal to review the matter and prepare a written response. Copies shall go to the parties involved and the Human Resources Department.

Step III
If the grievance is not resolved, the grievant may, within ten (10) workdays following receipt of the Chief’s response, appeal to the City Manager or their representative, stating in writing the basis for the appeal.

The City Manager or their representative shall set a hearing within ten (10) working days of receiving the appeal. The grievant, their representative, and other parties summoned by the City Manager or representative shall attend the hearing and present testimony or evidence concerning the grievance. The parties may bring a reasonable number of witnesses to the hearing.

The City Manager or their representative shall render a written decision to all parties directly involved within fifteen (15) working days following the hearing.

Step IV

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If the grievance is not resolved to the satisfaction of the grievant at the conclusion of Step III, the grievant may appeal the decision of the City Manager to a neutral arbitrator, provided they so inform the City in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within ten (10) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the Arbitrator. If one (1) person is not mutually agreed upon, the parties shall within ten (10) working days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as Arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The Arbitrator shall have no authority to add to, detract from, alter, amend, or modify any provision of this Agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this Agreement, or to alter any wage rate or wage structure. The decision of the Arbitrator shall be rendered after the evidence and arguments are presented to them by the parties in the presence of each other and in post-hearing briefs, if necessary.

The decision of the Arbitrator shall be final and binding upon the parties.

The Arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) working days after the conclusion of the hearing.

The Arbitrator’s expenses, if any, shall be borne equally by the parties. Each party shall bear the cost of its own representation.

SECTION 25.00 - DISCIPLINARY APPEALS PROCEDURE

25.01 Definition
For the purposes of this article, disciplinary action shall mean suspension, demotion, disciplinary reduction in salary or discharge.

The appeal procedure described herein shall apply to cases of disciplinary action affecting regular employees. It shall not be applicable to probationary employees. Employees have the right to representation at any or all stages of the appeal process.

25.02 Pre-Action Procedure
Step 1
Prior to imposing disciplinary action, the supervisor shall first provide the employee a

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preliminary written notice of the proposed action stating the effective date and the specific grounds and particular facts upon which the action will be taken. The employee shall have access to any known written materials, reports or documents upon which the action is based.

If the employee decides to exercise their right to respond to the charges (Skelly hearing), they shall advise the Chief of Police of their desire to exercise their rights within five (5) working days from receipt of notice. The Chief of Police and the employee (or the employee’s representative) shall then schedule the Skelly hearing within five (5) working days of the employee’s notification of their request to have a Skelly hearing. If the Chief of Police is personally involved in the initial investigation and notice process, the City Manager or Human Resources Director shall appoint a designee to hear the response.

The employee may request an extension of the time to respond for justifiable reasons.

Failure to respond within the time specified will result in the employee’s waiver or their procedural rights and final action will be taken.

Step II
Following a review of a proposed disciplinary action, the Chief of Police, within five (5) working days of receiving the employee’s response, shall render a written decision and send it by registered mail or personal delivery to the employee. A copy shall also be mailed to the employee’s representative. The written decision will include the effective date of the disciplinary action.

The employee has the right, within five (5) working days after receiving the decision, to file a request for appeal with the City Manager. The appeal shall be a written statement, signed by the appellant, explaining the matter appealed from, stating the action desired by the appellant, with their reasons, therefore, and stating that the pre-action procedures have been exhausted.

25.03 Post-Action Appeal
Step III
If the employee files a timely appeal, the City Manager shall, within ten (10) working days after receiving the appeal, designate a hearing officer who shall schedule a hearing not less than ten (10) working days from the date the appeal was received.

The hearing officer may conduct such independent investigation of the matter as they deem necessary. The appellant shall be given the opportunity to answer or present evidence in opposition to the findings of this independent investigation.

The appellant shall appear personally at the scheduled hearing unless physically unable to do so. The appellant or their representative may produce relevant oral or documentary evidence at the hearing.

Within fifteen (15) working days following the hearing, the hearing officer shall render a written decision to all parties involved. The hearing officer has the authority to affirm, repeal or modify the disciplinary action.

For discipline equivalent to the severity of suspension of three (3) days or less, there shall be no appeal beyond Step III and the City Manager’s decision shall be final.

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Step IV
If the appeal (except as exempted above) is not resolved to the satisfaction of the appellant at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided it so informs the City Manager in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within ten (10) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the arbitrator. If one (1) person is not mutually agreed upon, the parties shall within ten (10) working days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The arbitrator shall have no authority to add to, detract from, alter, amend, or modify any provision of this agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this agreement, or to alter any wage rate or wage structure.

The decision of the arbitrator shall be rendered after the evidence and arguments are presented to them by the parties in the presence of each other and in post-hearing briefs, if necessary. The decision of the arbitrator shall be final and binding upon the parties.

The arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued with fifteen (15) working days after the conclusion of the hearing.

The arbitrator's expenses shall be borne equally by the parties. Except that each party shall bear the cost of its own representation.

SECTION 26.00 - WRITTEN REPRIMANDS
A written reprimand may be issued by an employee’s supervisor if an employee has violated a City rule, provision of the M.O.U., or if their performance is in need of improvement. Written reprimands shall be placed in the employee’s personnel file for a period not to exceed five (5) years, after which they will be destroyed. An employee shall have the right to prepare a written response to the reprimand and have said response placed in their personnel file. An employee may appeal the supervisor’s decision to issue a written reprimand to the Chief of Police by filing a written appeal to the Chief of Police within ten (10) working days of receipt of the reprimand. The written appeal may include a request to present the appeal orally to the Chief of Police. If the Chief is not reasonably available, they will render a decision from the written appeal. An employee may request an extension of the time to respond for justifiable reasons.

The Chief of Police’s decision regarding the written reprimand shall be final; unless, the reprimand originated with the Chief of Police in which case the employee shall have the right to appeal the

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department head’s decision to the City Manager.

SECTION 27.00 - ENFORCEMENT OF TERMS
The Association agrees to enforce the terms of this Memorandum and recognizes the right of management to institute a grievance against the Association in the event the Association does not, through a member, comply with this Memorandum.

SECTION 28.00 - SEVERABILITY
This Memorandum is subject to all current, future and applicable federal and state laws, state regulations, the Santa Cruz Charter, and the State Constitution.

Should any of the provisions herein contained be rendered or declared invalid by reason of State or Federal legislation or court action, such invalidations of such part or portions hereof shall not invalidate the remaining portions hereof and they shall remain in full force and effect, insofar as such remaining portions are severable.

SECTION 29.00 - LAYOFF POLICY & PROCEDURE
All represented employees shall be subject to the layoff policy and procedure provided in this section.

29.01 Layoffs
The City reserves the right to reduce its workforce by layoff of employees for reasons of economy or changes in departmental operations. When one or more employees assigned to the same classification within the department are to be laid off, the order of layoff shall be as follows:

1. Casual on-call

2. Temporary

3. Casual, less than half time

4. Probationary

5. Regular
The order of layoffs shall be governed by seniority in classification from the date of hire in the classified position.

29.02 Bumping
Bumping is defined as a voluntary movement of an employee to be laid off from their current classification to a previously held lower classification or reclassified position held by an employee with less seniority. Bumping privileges may be exercised within the Police Department. An employee with sufficient seniority to bump an employee in a lower classification shall bump the least senior person in that classification.

For bumping purposes, seniority shall be defined as time in the affected classification added

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to time in a directly related higher classification.

29.03 Notification
Employees to be laid off shall be given not less than fifteen (15) working days written notice prior to the reduction in force. An employee wishing to bump to a lower classification shall provide written notice to the City within ten (10) working days of receiving their layoff notice.

29.04 Reinstatement
Should there be a vacancy in the classification from which an employee was laid off within thirty-six (36) months the employee shall be eligible for reinstatement. It shall be the employee’s responsibility to notify the Human Resources Department of their current address. Every effort shall be made to notify the affected individual of any reinstatement opportunity. Reinstatement shall be in the reverse order of layoff.

SECTION 30.00 - POLICE DEPARTMENT RESOURCE ALLOCATION

COMMITTEE
The parties shall convene an Advisory Police Department Resource Allocation Committee (“Committee”) to explore and discuss resource allocation within the Santa Cruz Police Department.

The Committee meetings shall not constitute “meet & confer” as defined by the Meyers-MiliasBrown Act, but are intended to serve as a collaborative effort to ensure officer safety, minimize waste, improve efficiency, and identify the most desirable uses of available resources.

The Committee shall consist of at least two (2) members of the Association and at least two (2) sworn members of SCPD management. The parties agree that committee members may change depending on the subject matter. Any findings, recommendations, or conclusions of the Committee are advisory and shall not be binding. The Committee shall meet a minimum of twice per year and may be requested by either party.

POLICE OFFICERS’ ASSOCIATION CITY OF SANTA CRUZ

OF THE CITY OF SANTA CRUZ
DATED: DATED:

Mark Eveleth Lisa Murphy

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Scott Garner Timothy Davis
Carter Jones Cheryl Fyfe
Fred Yoon Joe McMullen
Dave Emigh Nico Megevand

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EXHIBIT A

CITY OF SANTA CRUZ

POLICE CLASSIFICATIONS
501 Community Service Officer
503 Police Officer Trainee
504 Police Officer
505 Police Sergeant
506 Victim Advocate

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EXHIBIT B
Council Policy 25.2
Add to pdf version when created

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EXHIBIT C
APO II-1A
Add when pdf version created

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EXHIBIT D
K-9 AGREEMENT
THIS AGREEMENT is made and entered into this _____ day of ______________, ___________ by and between the CITY OF SANTA CRUZ, a municipal corporation (“CITY”), and __________________________________________, a Police Officer (“EMPLOYEE”), (Employee)
employed by CITY.

RECITALS
A. CITY now operates a canine program with the CITY’s Police Department.

B. CITY owns a police dog named .

A.D. CITY and EMPLOYEE desire that EMPLOYEE participate in the canine program.

B.E. It is the desire of the parties to confirm their relationship during the period of ______________________________ to __________________________________.

AGREEMENT

1. The term of the Agreement shall be _____________________________________ to ________________________________________.

2. During the term of this Agreement, EMPLOYEE shall keep the dog under EMPLOYEE’s care and control at all times, and EMPLOYEE shall do the following:

A. House and feed the dog in a manner consistent with good practices.

B. Keep the dog clean, well groomed, and in good health.

C. Provide such veterinary care as is necessary to maintain the dog free from disease, defect, or injury.

D. Maintain the dog at a high level of operational ability.

C.F. Keep the dog available for police work at all times.

F. Respond with the dog to calls as directed by EMPLOYEE’s supervisors.

G. Handle the dog at the scene as directed by EMPLOYEE’s supervisors.

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3. CITY and EMPLOYEE agree the compensation shall be $204 per pay period.

A. CITY and EMPLOYEE agree that CITY has acted in good faith and has reasonable grounds for believing that this Agreement complies with the FLSA.

4. In addition to the monthly compensation, CITY shall provide, on a contract basis, for the animal’s food, grooming supplies, training supplies, disinfectants, and all veterinary care. Further, CITY shall provide the pay for any and all necessary training of the animal.

5. EMPLOYEE shall be deemed to be acting within the scope of employment during any department authorized activities connect with the training of the dog and police work involving the dog. CITY shall compensate EMPLOYEE for police work and training of the dog in accordance with the Memorandum of Understanding.

6. CITY shall hold EMPLOYEE harmless for any liability occurring to EMPLOYEE by reason of EMPLOYEE’s participation in the canine program, excepting acts which are willful, malicious or outside the course and scope of employment. The obligation set forth in this paragraph shall protect EMPLOYEE from any liability, whether said liability arises during EMPLOYEE’s regular working hours or otherwise.

7. EMPLOYEE agrees to recertify the dog for participation in CITY’s canine program on an annual basis, as well as at such other times as CITY may reasonably require.

8. This Agreement shall be terminated by the occurrence of any of the following:

A. Death of the dog or inability of the dog to perform police work.

B. The furnishing by CITY of thirty (30) days’ notice to EMPLOYEE.

C. The furnishing by EMPLOYEE of thirty (30) days’ notice to CITY. Additional notice beyond thirty (30) days is strongly encouraged.

D. Termination of EMPLOYEE’s employment with CITY.

9. The attached general provision regarding the canine program shall be a part of this Agreement.

10. This Agreement shall constitute the entire Agreement between the parties and shall supersede any previous agreements, whether verbal or written , concerning the same subject matter. No modification of this Agreement shall be effective unless and until evidence by a writing is signed by both parties.

IN WITNESS WHEREOF, this Agreement was executed on the date hereinabove written.

CITY OF SANTA CRUZ EMPLOYEE

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APPROVED AS TO FORM:

CITY ATTORNEY UNION REPRESENTATIVE

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EXHIBIT E
Santa Cruz Police Department
Policy Manual
Absences/Time Off
1001.1 PURPOSE AND SCOPE
It is the policy of this Department to set forth procedures and guidelines for time off requests, absences and injuries, and surrendering departmental equipment in cases of leaves of absence.
1001.2 PROCEDURE
1001.2.1 TIME OFF REQUESTS
The Department will strive to facilitate time off requests in a timely manner. It is necessary to balance employees’ needs for time off with the mandate that the organization provide public safety services for the City of Santa Cruz. In order to do this it is required that time off requests be made sufficiently in advance so that proper consideration may be given to the needs of the employee, City and the Department.
(a) All employees, permanent, part time, or temporary must put in writing their time requests.
(b) Time off requests may be submitted up to one (1) year in advance of the date(s) requested.
(c) Requests shall be for vacation, management vacation, holiday, floating holiday, compensatory time off, maternity leave, leave of absence, military leave, or family leave.

1. Requests may be for any or a combination of all of the above. (d) Requests for forty hours or more should be made thirty days in advance of the requested time off.

1. Reasons of legitimate exigency may be accepted by a supervisor in the event that thirty days notice does not occur.
(e) Requests for more than eighty hours will require approval from the Deputy Chief of Police and should be made a minimum of sixty days in advance of the requested time off. 1001.2.2 RESPONSIBILITIES
(a) The requesting employee is responsible for making the request in a timely manner and for knowing and requesting only that time which they have earned and may, therefore, take legally.

1. It is the employee’s responsibility to notify the Financial Services Unit/payroll/purchasing clerk of any changes or cancellations of a time off request that was previously submitted.
(b) The unit/detail supervisory is responsible for evaluation staffing levels and for insuring that sufficient staffing is available if the request is approved.

Policy
1001

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1. Every effort should be made to avoid the use of overtime when granting leave.

2. The supervisor must check the special events calendar, sergeants’ calendar and the master schedule.

3. The staffing available will be listed on the request form by the supervisor so it may be reviewed by the Team Commander.

4. If approved, enter the information on the sergeants’ calendar. If the date is for some time beyond the current four-week period, the Administrative Assistant will enter it on the appropriate four-week schedule.

5. Sign the request form both as to approval and entry on the master schedule.

6. The master schedule and the sergeant’s calendar are the reference documents used to allocate personnel. They must be maintained in an accurate condition at all times.
(c) The managers are responsible for reviewing the requests and insuring that sufficient staffing remains available.

1. Management will strive to provide a maximum of seven (7) day turnaround on all time off requests.

2. An exception may occur if a request is made prior to the master schedule being established.
(d) The Payroll/Purchasing Clerk will log all time off requests on their calendar and be able to provide information to supervisors, managers and employees when it is requested.

1. The Payroll/Purchasing Clerk will insure that approved time off is recorded onto the payroll sheet as required by City Payroll procedures. (This does not negate the employee or supervisor’s responsibility to record it on the time sheet for the affected payroll period.)

2. The time off request forms, once approved, will be maintained by the Payroll/Purchasing Clerk.
1001.2.3 ORGANIZATIONAL INTENT
(a) It is the intent of the organization to facilitate time off requests to the extent economically and operationally feasible.
(b) Normally, overtime will not be authorized to replace an employee so they can obtain time off.
(c) Exceptions may be made for good cause but will require approval of the Division Commander. Items to be considered are:

1. Time of year.

2. Special events.

3. Negative impacts on remaining working employees.

4. Budgetary restraints.

5. Long term impacts on both the organization and the requesting employee.

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(d) Employees should strive to take the bulk of vacation or holiday time off during time other than mid-June through August due to the department’s summer workload. (e) Time off requests will be considered in the order in which they are submitted. Seniority in rank will be a determining factor when time off requests are made by more than one person, submitted on the same day and requesting the same time off, or a large percentage of it.
1001.3 ABSENCES AND INJURIES
1001.3.1 NOTIFICATION OF ABSENCE
(a) Any employee who is unable to report for duty as scheduled shall notify the appropriate Watch Commander/Section Commander. Notification shall be as far in advance as possible. A minimum of two hours is required. The reason for such absence shall be reported.

1. In the event the Watch Commander/Section Commander is not available to receive the call, the employee receiving the notification shall forward the information to the Watch Commander as soon as practical, with minimum of the following information.
(a) Name of absent employee.
(b) Time called.
(c) Reason for absence.
(d) Length of absence (if known).
(e) Location of employee.
(f) Telephone number where employee can be reached.

2. The employee calling in ill shall leave a telephone number where he/she can be reached by their supervisor.
(b) Availability of Employee.

1. Employees shall inform their respective Watch/Section Commander of their location during their respective (normal) duty hours while absent. (c) Checks on Absentees

1. Any employee should expect a personal visit or phone contact from a Department representative during their period of recuperation. Such contact shall be at the discretion of the appropriate supervisor, Watch Commander, Division Commander, or the Chief of Police. Priority shall be given to absences in conjunction with days off.
(d) Procedure for returning to full duty from an off-duty injury or illness.

1. Absence of three (3) working days or less: If an employee is absent from work for a period of three consecutive working days or less, the following procedure will apply:

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(a) Approval to return to work can be approved by the employee’s immediate supervisor.
(b) Sick leave affidavit must be completed.
(c) If questions arise concerning the employee’s health or ability to work, the employee may be referred to a physician for re-examination.

2. Absences in excess of three (3) working days: For the benefit of the employee’s health, and the health and welfare of those persons who will work with and depend on the returning employee, on absences in excess of three (3) consecutive working days the following will apply:
(a) The absence must be support by a completed sick leave form and a Medical release from employee’s physician.
(b) If a question arises concerning the employee’s health or ability to work, the employee may be referred to a physician for an examination. (e) Industrial Injuries or Illness.

1. All injuries on duty and all work-incurred diseases shall be reported to the employee’s immediate supervisor as soon as possible following the injury.

2. If an injury or disease requires the attention of a physician, the supervisor receiving the injury report will direct the employee to a physician or medical center listed on the City’s Medical Service order form.
(a) Exception: In the case of needed emergency attention, the supervisor will direct that the employee be transported to the nearest medical center. (b) The employee, if able, or the employee’s supervisor, shall advise the attending physician or medical center that the injury or disease is a Workers Compensation injury.
(c) If, however, an employee notifies the employer in writing prior to the date of injury that he/she has a personal physician, the employee shall have the right to be treated by that physician from the date of injury after emergency treatment, if necessary, has occurred.

3. Completing the City of Santa Cruz Report of Personal Injury to City Employee and City of Santa Cruz Medical Service Order.
(a) The injured employee’s supervisor shall complete the Medical Service Order form as soon after the injury as possible and in all cases prior to termination of the shift.
(b) The injured employee’s supervisor shall complete the Employer’s Report of Occupational Injury or Illness form as soon after the injury as possible and, in all cases, prior to termination of the shift.

4. Completing the SCPD Physician’s Statement
(a) In every industrial injury or illness situation, the SCPD Physician’s statement must be completed by the attending physician. (b) The SCPD Physician’s Statement must be completed by the attending

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physician after any subsequent examinations that result in:

1. A continuation of restricted duty status.

2. A modification to restricted duty status.

3. A continuation of limited duty status.

4. A modification to limited duty status.

5. Or whenever requested by the employee’s supervisor.

5. Treating Physician
(a) It is necessary for an employee to be examined by the same physician or medical facility who made the first examination and diagnoses and treatment on the industrial injury or illness during the first 30 days subsequent to the injury or illness, unless the physician refers the employee to another medical facility or permission is received from the Worker’s Compensation Administrator and/or the City Human Resources Department Benefits Coordinator.
1001.3.2 LIMITED DUTY STATUS
(a) Supervisor’s Responsibility

1. It shall be the responsibility of each Division Commander to make the most productive use of limited duty personnel under their command.

2. Each Watch/Section Commander shall contact the Division Commander to ascertain information on the returning employee to see what duty limitations or restrictions have been imposed by his physician. If the physician’s instructions are not clear, the Division Commander shall contact the physician and have him/her restate the medical work restrictions in concise written terms.

3. The employee’s proposed assignment shall be put in writing, including any limitations placed on their activities. After approval of the Division Commander, personally serve the employee with a copy of their assigned duties. Discuss the assignment with the employee to ensure there are no misunderstandings or that you are not asking them to perform a task that they feel they should not be doing because of risk of re-injury and/or delaying recuperation time. Have the employee sign the memo.

4. Distribution/routing of memo:
(a) Copy to employee.
(b) Copy to Administration Division Commander.
(c) Copy to Operations Division Commander.
(d) Copy to the Chief of Police.
(e) Original to employee’s personnel file.
(f) Copy to Personnel Department.

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(b) Employee’s Responsibility:

1. Inform their supervisor of any physical limitations that they may have prior to acceptance of assigned duties that they feel they are incapable of safely performing.

2. Any employee returning in a limited duty capacity shall be exempt from normal scheduling provisions and may be assigned to any unit/section within the Department that is tin the best interest of the Department.

3. All employees working in a limited duty status shall dress in business-like attire.

S.C.P.D. polo shirts are acceptable. No jeans or collarless shirts. (c) Reporting Outside Employment

1. Department employees engaged in outside employment who are placed on disability leave, limited duty or restricted duty, will inform or remind their commanding officer of their outside work authorization in writing. (d) Outside Employment while Disabled/Injured

1. The Chief of Police or a designee has final authority to determine when an employee’s outside employment should be discontinued. When discontinued, a notice of revocation of the employee’s work authorization shall be attached to the original work request form. The employee shall also receive a copy.

2. Criteria for revoking the outside work authorization includes, but is not limited to, the following elements:
(a) The outside work is detrimental to the total recovery of the disabled employee as indicated by the employee’s treating physician and/or City designated physician.
(b) The outside work performed requires the same physical ability as would be required of an on-duty officer.

3. When the disabled member returns to duty, a written request to the Chief of Police shall be made to restore the outside work authorization. (e) Returning to full duty from a Limited Duty Status.

1. Prior to an employee returning to full duty after being on a limited or restricted duty status, the employee must furnish the Department with a medical release signed by their physician that the employee is capable of returning to full duty status.

2. Routing of medical release form:
(a) Copy to Administration Division Commander.
(b) Copy to Operations Division Commander.
(c) Copy to the Chief of Police.
(d) Copy to city Personnel Department.

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(e) Original to employee’s police personnel file.
1001.3.3 INABILITY TO REPORT FOR WORK
(a) Options available to sick and/or injured employees:

1. Health and fitness is a condition of employment. It is the responsibility of the employee to maintain themselves in a healthy and fit condition.

2. If feasible, the Department will attempt to put an injured or ill employee into a productive work slot for a reasonable period.

3. If a productive work position is not available, or if there does not appear to be a likelihood that the employee will return to full duty status, a number of options are available:
(a) Use of accumulated sick leave.
(b) Long term disability.
(c) Worker’s Compensation claim, if injury/illness was incurred during course and scope of employment.
(d) Retirement.
(e) Resignation.
(f) Dismissal.
1001.3.4 DISCIPLINARY ACTION
(a) Abuse of sick leave.

1. Documentation of an abuse of sick leave may result in any one or combination of the following:
(a) Reprimand-oral or written.
(b) Suspension.
(c) Reduction in pay or rank.
(d) Dismissal.
1001.3.5 RECURRENCE OF PRIOR INDUSTRIAL INJURY
No worker’s compensation time will be allowed unless there is a physician’s note. Example:

Employee has an old back injury that was work-related and treated as a worker’s compensation injury. Three months later, employee’s back is hurting. Employee calls in to take time off. No worker’s compensation time off can be approved unless the injury is verified by a physician as a continuation or re-injury of a previous worker’s compensation injury.

23.65 62
1001.4 THE SURRENDER OF DEPARTMENTAL PROPERTY IN CASES

OF LEAVES OF ABSENCE
(a) Leaves of Absence:

1. When any departmental personnel are placed on administrative leave, leave of absence, medical leave of absence, worker’s compensation, or any leave of absence due to disciplinary action, and the leave of absence is for more than one work week, they shall report to the Administrative Division Commander at the discretion of the Administrative Commander.

2. The involved personnel may be required to surrender their badge, identification card, and duty weapon. In any case involving the above-mentioned situations, it shall be the responsibility of the Administrative Deputy Chief to retrieve these items.
(b) In all cases, the Division Commander of the affected personnel shall notify the Chief of Police by way of departmental memorandum of the circumstances of the action. Included in this memorandum should be:

1. Employee’s name.

2. Employee’s present rank.

3. Employee’s present assignment.

4. Projected length of leave.

5. Reason for leave.
(c) The Administrative Deputy Chief shall be responsible for the proper storage of the above property, and the return of the property to the employee when the employee returns to active duty.
(d) The employee, while on this leave, shall not in any way act as a peace officer.

23.66 63

EXHIBIT F
Seniority list
Add when pdf is created

23.67 64

EXHIBIT G
APO II-1b Respectful Workplace Conduct Policy
Add to PDF version when created.

23.68 City Council

AGENDA REPORT
DATE: 05/20/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Parks and Recreation
SUBJECT: 2025 Santa Cruz Wharf End Interim Repair Project (c302612) - Notice of Completion (PR)
LOCATION: District 4
RECOMMENDATION: Motion to:
1) Accept the work of Jilk Heavy Construction (Brea, CA) as completed per plans and specifications;
2) Authorize the filing of the Notice of Completion for the 2025 Santa Cruz Wharf End Interim Repair Project (c302612); and
3) Authorize the Parks and Recreation Director to sign the Notice of Completion as the Owner’s Authorized Agent.

BACKGROUND: On December 23, 2024, the end of the Santa Cruz Municipal Wharf collapsed into the ocean following a historic wave event. The collapsed section was approximately 180 ft. in length and was under repair from damage sustained during the 2023- 2024 winter storms at the time of the collapse. Following initial clean up, recovery and structural assessments, the Santa Cruz City Council formed an ad hoc sub-committee in February 2025 to work with City staff on a near-term proposal to address the damaged end of the Wharf. Five alternatives to address the damaged end of the Wharf were considered which included an analysis of costs and financial viability, structural integrity and resiliency, consistency with the Wharf Master Plan, and options that would allow for future visioning and potential reconstruction of the collapsed end of the Wharf. After thorough review and discussion, the ad hoc sub-committee recommended Alternative #5, which would repair the damaged end of the Wharf at Bent 171. On April 22, 2025, the City Council accepted the ad-hoc subcommittee’s recommendation to accept Alternative 5 as the preferred approach, authorized staff to enter into a contract with Moffatt & Nichol for plans and specifications for Alternative #5 and to release the project for competitive bids, and authorized the City Manager to execute contracts in a form approved by the City Attorney.

Upon completion of a competitive bid process, a contract with Jilk Heavy Construction was executed and construction of Alternative #5 began in November 2026.

24.1 DISCUSSION: Work for this project is now complete. The project has been inspected by Moffatt & Nichol and found to be completed in accordance with the plans and specifications.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This project was deemed exempt from CEQA under several statutory and categorical exemptions.

HEALTH IN ALL POLICIES (HiAP): The Santa Cruz Wharf is the longest timber Wharf in the western hemisphere and is an historic asset in the City of Santa Cruz. The Wharf is overseen and managed by the Parks and Recreation Department in close coordination with Public Works, Fire, and Economic Development and Housing. The City not only maintains the Wharf but also activates it through numerous annual events and activities ranging from Woodies on the Wharf to the Tuesday Night Live summer concert series and much more. Beyond these events, the Wharf provides unique public access to experience the Monterey Bay National Marine Sanctuary and is home to roughly twenty local businesses. The Parks and Recreation Department’s mission is to “provide quality public spaces and experiences that build a healthy community, foster equity, and better the environment.” Through the implementation of this mission, the Parks and Recreation Department seeks to advance the core pillars of HiAP – health, equity, and sustainability.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Final review of the remaining purchase orders for the 2025 Santa Cruz Wharf End Interim Repair Project (c302612) is forthcoming. The project of approximately $1,500,000 was funded through the California Office of Emergency Services and insurance proceeds secured for the repairs. Parks and Recreation Department will return to Council, if needed, for a budget adjustment to close out the project budget. It is not anticipated that there will be an impact to the General Fund.

Prepared By:

Norm Daly
Development Manager
Submitted By:

Tony Elliot
Director of Parks and
Recreation
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION 2026.PDF

24.2 Notice of Completion (Revised Oct 2021)
(Space above for Recorder’s use only)
This instrument is being recorded for the benefit of the City of Santa Cruz.

No recording fee is required pursuant to Government Code § 27383.

NOTICE OF COMPLETION
(CA Civil Code Sections 8102 and 9204)
NOTICE IS HEREBY GIVEN THAT:

The undersigned is an authorized representative of the owner of the interest or estate stated below.

1. The Owner’s Name and Address. The Project owner is the City of Santa Cruz, a municipal corporation (the “City”). The City’s mailing address is 809 Center Street, Rm. 10, Santa Cruz, California 95060.

The City of Santa Cruz has the following interest in the subject Property described below:
: City Property

2. Project Title and Number. The full name of the work of improvement/public works project (the “Project”) which is the subject of this Notice of Completion is: 2025 Santa Cruz Wharf End Interim Repair Project c302612

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: Installation of new piles, caps, stringers, decking and asphalt.

4. The general site location description or address (the “Property”) of the public improvement is located at: 21 Municipal Wharf, Santa Cruz, CA 95060

5. Name and Address of Contractor. The Contractor on the Project is: Jilk Heavy Construction, 500 S.

Kraemer Blvd., Suite 380, Brea, CA 92821

6. Construction Lender. The name and address of the construction lender, if any, is: None

7. Date of Completion. The Project on the Property was completed on: April 14, 2026

8. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, June 9, 2026
DATE: ___________________
Tony Elliot
Director of Parks and Recreation
City of Santa Cruz
RECORDED AT THE REQUEST OF:

City of Santa Cruz, Parks and Recreation
Attn: Norman F. Daly
WHEN RECORDED MAIL TO:

City Clerk’s Department
809 Center Street, Room 9
Santa Cruz, CA 95060

24.3 City Council

AGENDA REPORT
DATE: 05/20/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Parks and Recreation
SUBJECT: Depot Bike Park – Phase II of Bike Park Renovation (c302237) (PR) LOCATION: District 4
RECOMMENDATION: Motion to:
1) Approve the design, plans, and specifications for the Depot Bike Park – Phase II of Bike Park Renovation Project (c302237). Authorize the Parks & Recreation Director, or designee, to act on the City’s behalf in approving modifications of the Council approved design; 2) Award a contract to procure and install bike ramps at Depot Bike Park to the American Ramp Company in the amount of $261,000. The Director of Parks and Recreation is authorized to execute change orders within the approved project budget; and 3) Approve of the California Environmental Quality Act (CEQA) determination contained in this agenda report. The Council’s action is exempt from CEQA review under (1) Common Sense Exemption (14 CCR 15061), (2) Class 1 Categorical Exemption (14 CCR 15301) for existing facilities, (3) Class 2 Categorical Exemption (14 CCR 15302) for Replacement or Reconstruction, and (4) Class 3 Categorical Exemption for New Construction or Conversion of Small Structures (14 CCR 15303).

BACKGROUND: This request includes the second phase of bike ramp improvements at Depot Bike Park. The first phase was completed using a partially funded Community Development Block Grant award in the 2018-2019 program year. That project replaced several aging wooden ramps with steel ramps that provide a longer service life and require less ongoing maintenance compared to wooden ramps. However, there was insufficient funding to replace all the existing wooden ramps within the park.

The initial phase prioritized improvements to the park’s advanced riding area because the larger wooden ramps had reached the end of their useful life and required replacement to address structural deterioration. Improvements were implemented in phases to maintain a minimum level of ridability. The long-term vision for the facility was to eventually complete the bike park with beginner- and intermediate-level features that would support skill development and attract a broader range of riders.

25.1 Over time, the remaining wooden ramps were gradually removed due to age and deterioration, resulting in an incomplete bike park with limited functionality. Staff have observed less use of the facility in recent years. The remaining features primarily serve advanced riders, limiting accessibility for less experienced users, while the existing advanced jump line lacks complementary supporting features.

In December 2024, staff held a community meeting to discuss whether or not pickleball or another use would be more suited for the park space. More than eighty participants attended the meeting and the feedback was overwhelmingly in support of completing the bike park.

In February 2025, staff reached out to a few known riders of the park and requested their assistance in working with staff to vet options for improving the bike park. The riders spoke with ramp designers on potential designs and then reviewed potential options with staff.

In December 2025, staff held a virtual community meeting to discuss two alternatives provided by two ramp companies, American Ramp Company and Super Ramp Technologies.

Approximately ten community members participated. Staff requested minor updates to the ramp designs to incorporate the feedback received. The American Ramp Company was the only company to revise its designs to incorporate the feedback.

DISCUSSION: The original design vision for the Depot Bike Park was to create a progressionbased facility that included beginner-, intermediate-, and advanced-level features. The park was designed around jump and flow lines that would allow riders to gradually develop skills and confidence over time. However, the facility currently remains incomplete, with only the advanced jump line and quarter pipe.

The proposed Phase II improvements are intended to restore the original design intent for the bike park by introducing progressive riding features that better accommodate a wider range of users and skill levels. The proposed ramps are smaller and more approachable than the existing advanced features and are designed to create a smoother transition for riders developing their abilities. The design incorporates roll-in quarter pipes, which are easier and safer for riders to navigate, along with a variety of features including rollers, tabletop jumps, a small step-up, hips, and a wall ride. Based on feedback from local riders and users familiar with regional facilities, the proposed features are intended to provide the next progression in difficulty for riders who have developed foundational skills at local pump tracks.

The City is a member of Cooperative NPPGov and proposes to utilize a cooperative purchasing agreement with American Ramp Company for the procurement and installation of the ramps.

Santa Cruz Municipal Code Section 3.08.170 authorizes the use of cooperative purchasing agreements in lieu of a separate competitive bidding process. Cooperative purchasing agreements are competitively procured by lead agencies or purchasing cooperatives and are made available for use by participating public agencies. American Ramp Company’s Sourcewell Contract #090425-ARC is valid through October 20, 2029.

Additional project funding is also proposed for asphalt sealing, repainting the existing ramps to match the new ones, and installation of updated signage throughout the facility. These improvements are intended to enhance the riding surface and create a more cohesive, updated appearance for the bike park.

25.2 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is exempt from CEQA under the following:
1) Common Sense exemption (14 CCR 15061) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. 2) Class 1 Categorical Exemption (14 CCR 15301) because the project consists of the operation, repair, maintenance, and/or minor alteration of existing structures and facilities involving no expansion of use.
3) Class 2 Categorical Exemption (14 CCR 15302) because the project consists of the replacement of existing structure and facilities where the new structure will be located on the same site and serve the same purpose.
4) Class 3 Categorical Exemption (14 CCR 15303) consists of the construction and location of a limited number of new, small structures.

HEALTH IN ALL POLICIES (HiAP): The proposed project advances several of the City’s Health in All Policies goals, including Health and Wellness, Equity, and Community Connectedness. The bike park provides opportunities for outdoor recreation and physical activity that support both the mental and physical well-being for riders of varying ages and skill levels.

Riding helps reduce stress, builds confidence, and fosters a sense of accomplishment and personal growth. The proposed improvements will expand accessibility to the facility by introducing more progressive beginner- and intermediate-level features, creating a more inclusive environment for a broader range of users. In addition, bike parks foster community interaction by encouraging mentorship among riders, strengthening social connections through shared recreational experiences, and providing a welcoming gathering space for the local riding community.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: Yes

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available in the Parks and Recreation Department’s FY 2026 Capital Investment Program for the Depot Bike Park – Phase II of Bike Park Renovation (c302237) project in the amount of $250,000. An additional $26,000 will be redirected from existing department CIP project balance to cover the total project cost of $276,000 through an administrative budget adjustment that the department will process before the end of the 2026 fiscal year. There is no impact on the General Fund.

Prepared By:

Noah Downing
Park Planner
Submitted By:

Tony Elliot
Director of Parks &
Recreation
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DEPOT BIKE PARK-PHASE II OF BIKE PARK RENOVATION-PLANS AND SPECS.PDF

25.3 AMERICANRAMPCOMPANY.COM
9537 - CA, SANTA CRUZ 25.4
9537 - CA, SANTA CRUZ
AMERICANRAMPCOMPANY.COM

25.5 9537 - CA, SANTA CRUZ
AMERICANRAMPCOMPANY.COM

25.6 9537 - CA, SANTA CRUZ
AMERICANRAMPCOMPANY.COM

25.7 9537 - CA, SANTA CRUZ
AMERICANRAMPCOMPANY.COM

25.8 AMERICANRAMPCOMPANY.COM
9537 - CA, SANTA CRUZ 25.9
American Ramp Company
601 S. McKinley Ave, Joplin, MO 64801
Phone: 417-206-6816
[email protected]
Quote # Design # Customer Date Designer
Q28963.0 9537 City of Santa Cruz 04-2-26 Chuck Dodge
Item Obstacle Height Width Length Pro Series
1 Quarter Pipe 5.0' 4.0' 16.0'
2 Quarter Pipe 5.0' 4.0' 16.0'
3 Bank Ramp (Wedge) 1.0' 4.0' 5.5'
4 Bank Ramp (Wedge) 1.0' 4.0' 5.5'
5 Bank Ramp 3.0' 4.0' 16.0'
6 Bank Ramp 3.0' 4.0' 16.0'
7 Roll-In 5.0' 4.0' 16.0'
8 Roll-In 5.0' 4.0' 16.0'
9 Bank Ramp 5.0' 4.0' 11.0'
10 Bank Ramp 5.0' 4.0' 11.0'
11 Bank Ramp 5.0' 4.0' 11.0'
12 Quarter Pipe 4.0' 4.0' 10.5'
13 Quarter Pipe 4.0' 4.0' 10.5'
14 Pyramid Corner (Bank Ramp) 45 Degree 4.0' 6.4' 9.1'
15 Bank Ramp 4.0' 4.0' 13.0'
16 Pyramid Corner (Bank Ramp) 90 Degree 4.0' 9.1' 9.1'
17 Bank Ramp 4.0' 4.0' 9.0'
18 Pyramid Corner (Bank Ramp) 45 Degree 4.0' 6.4' 9.1'
19 Bank Ramp 4.0' 4.0' 13.0'
20 Bank Ramp 4.0' 4.0' 13.0'
21 Quarter Pipe 4.0' 4.0' 11.0'
22 Quarter Pipe 4.0' 4.0' 11.0'
23 Quarter Pipe 4.0' 4.0' 11.0'
24 Roll-In 2.5' 4.0' 9.0'
25 Roll-In 2.5' 4.0' 9.0'
26 Quarter Pipe 2.5' 4.0' 9.0'
27 Quarter Pipe 3.0' 4.0' 9.0'
28 Quarter Pipe 3.0' 4.0' 9.0'
29 Quarter Pipe 3.0' 4.0' 9.0'
30 Quarter Pipe 3.0' 4.0' 9.0'
31 Quarter Pipe 2.5' 4.0' 9.0'
32 Roll-In 2.5' 4.0' 9.0'
33 Roll-In 2.5' 4.0' 9.0'
34 Pyramid Corner (Radius) 45 Degree 4.0' 4.9' 6.9'
35 Quarter Pipe 4.0' 4.0' 11.0'
36 Pyramid Corner (Radius) 90 Degree 4.0' 6.9' 6.9'
37 Quarter Pipe 4.0' 4.0' 7.0'
38 Pyramid Corner (Radius) 45 Degree 4.0' 4.9' 6.9'
39 Roll-In 6.0' 4.0' 17.0'
40 Roll-In 6.0' 4.0' 17.0'
41 Quarter Pipe 6.0' 4.0' 17.0'
42 Quarter Pipe 6.0' 4.0' 17.0'
43 Quarter Pipe 6.0' 4.0' 17.0'

25.10 American Ramp Company
601 S. McKinley Ave, Joplin, MO 64801
Phone: 417-206-6816
[email protected]
Quote # Design # Customer Date Designer
Q28963.0 9537 City of Santa Cruz 03-31-26 Chuck Dodge
TOTAL $ 248,867.69
Repaint Existing Ramps & Mfg Custom Enclosure $ 16,000.00 Sourcewell Discount @ 8% -$ 21,189.42
Sales Tax @ 9.75% $ 17,242.09
GRAND TOTAL $ 260,920.36
Notes:
• This turnkey quote includes Equipment, Shipping, and Installation. • This quote includes repainting existing metal ramps tan to match new ramps. This does not include repainting guardrails or framework.
• This quote includes manufacturing and installing custom enclosure for existing feature ARC ramp will be installed next to. This does not include enclosures for all existing features. • This quote includes a Sourcewell discount (if procured through Sourcewell Purchasing Co-Op). • This quote includes prevailing wage.
• This quote includes sales tax on material only. If not applicable, call for revised quote. • This quote does not include bonding. If applicable, call for revised quote. • Quote is good for 30 days.

Purchase through our competitively bid government Sourcewell contract.

25.11 City Council

AGENDA REPORT
DATE: 05/20/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Parks and Recreation
SUBJECT: Park Host Program License Agreement – Harvey West Park (PR) LOCATION: District 5
RECOMMENDATION: Motion to:
1) Approve and authorize the City Manager to execute the Park Host Program License Agreement with Kenneth Castro for a one-year term at Harvey West Park; and 2) Adopt a finding of categorical exemption pursuant to CEQA Guidelines Section 15301 (Existing Facilities).

BACKGROUND: On May 23, 2017, the Santa Cruz City Council authorized the establishment of the Park Host Program within City-owned park facilities. The program provides for an onsite volunteer presence at designated municipal parks to assist with routine facility monitoring, support after-hours site awareness, and facilitate regular communication with department staff regarding property conditions.

DISCUSSION: Pursuant to the established program guidelines, Kenneth Castro has been selected to serve as the Park Host for Harvey West Park. The attached License Agreement grants a non-exclusive license for a designated 480-square-foot area within the park (APN 001-241-01) to accommodate a host recreational vehicle pad and standard utility hookups.

The agreement establishes a one-year term beginning March 11, 2026, with an option for a single one-year renewal at the City’s sole discretion. It details standard operational guidelines, insurance minimums, and strict background check requirements. To advance immediate program operations and secure a stable site presence, the City Manager has reviewed and signed the initial documentation; formal City Council authorization is requested to finalize and affirm the fullterm of the agreement.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed action is categorically exempt under CEQA Guidelines Section 15301 (Existing Facilities), as it involves negligible or no expansion of an existing use.

26.1 HEALTH IN ALL POLICIES (HiAP): The recommendation supports community health and safety by maintaining active, monitored, and welcoming public park environments.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is no impact to the General Fund. In consideration of the volunteer hours provided by the Park Host to look after the facility, the City does not charge a license fee. The minimal cost associated with standard utility hookups (electrical, water, and sewer) will be absorbed within the Parks and Recreation Department's existing operating budget.

Prepared By:

Lindsay Bass
Principal Management
Analyst
Submitted By:

Tony Elliot
Director of Parks and
Recreation
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. 2026 PARK HOST PROGRAM LICENSE AGMT_CASTRO.PDF

26.2 License Agreement 1

LICENSE AGREEMENT

BETWEEN

CITY OF SANTA CRUZ AND KENNETH CASTRO
THIS LICENSE AGREEMENT (“License Agreement”) is made and entered into this _____day of March, 2026 (“Effective Date”) by and between the City of Santa Cruz, a municipal corporation (“City” or “Licensor”) and Kenneth Castro (“Park Host” or “Licensee”). City and Park Host may also be identified individually as “Party” or collectively as the “Parties.” I. RECITALS
A. City owns Harvey West Park, located at 326 Evergreen St, Santa Cruz, CA 95060 (the “Park”).

B. On May 23, 2017, the Santa Cruz City Council authorized the creation of a Park Host Program in Santa Cruz City-owned parks, whereby a selected individual will remain onsite at the designated City Park as a volunteer and visible presence in the Park, serving as the “eyes and ears” for the City with the goal of deterring illegal activities within the Park during off hours.

C. City has selected Kenneth Castro to serve as the Park Host for the Park.

D. In consideration for Kenneth Castro serving as Park Host, City agrees to grant Kenneth Castro a license to access and use a portion of City property within the Park in order to carry out the role of Park Host, subject to the terms and conditions contained in this License Agreement.

NOW, THEREFORE, incorporating the above-stated Recitals, in consideration of the conditions herein contained, and for other good and valuable consideration, the City and Park Host agree as follows:

II. AGREEMENT

1. LICENSE AREA.
a. City grants to Park Host a non-exclusive license (“License”) for the use of a portion of Harvey West Park, located on an estimated 480 square feet on APN 001-241-01 of City’s property described and as shown in the attached Exhibit A (the “License Area”), incorporated herein.
b. The License Area includes electrical, water, and sewer hook-up and a recreational vehicle parking pad measuring 12 feet by 40 feet.

Docusign Envelope ID: 17043333-20B2-48B8-B864-F754AAAF7CBC 11th

26.3 License Agreement 2
c. The License is for the sole purpose of performing Park Host duties (as further described in Exhibit B “Park Host Guidelines,” attached hereto and incorporated herein) (collectively, the “Permitted Use”).
d. Park Host does not hold any ownership or vested property interest in the License Area by virtue of this License. This License Agreement is not a lease but merely entitles Park Host to use the License Area as provided herein.

2. TERM. This License shall be for one (1) year and shall commence on March 11, 2026 (“License Term”). At City’s sole discretion and provided that Park Host is in full compliance with the terms of this License, this License Agreement may be renewed for a maximum of one (1) additional one (1) year term (the “Extended Term”) for a total term of two (2) years, upon Park Host providing written notice to the City requesting to exercise the option to extend the License term not less than ninety (90) days prior to the termination of the License Term.

3. TERMINATION.
a. City may immediately terminate this License Agreement by providing Park Host written notice if City, it its sole discretion, determines that Park Host has breached any term or condition of this License Agreement.
b. Either Party may terminate this License Agreement by providing written notification to the other Party at least thirty (30) days in advance of the effective date of termination. c. Upon termination of this License Agreement, unless otherwise instructed by City in writing, Park Host shall remove any personal property, fixtures or improvements in the License Area at Park Host’s sole expense and return the License Area to the condition it was in immediately prior to Park Host’s use, excepting normal wear and tear. Should Park Host fail to remove or dispose of Park Host’s personal property, the City may, as its election, consider such property abandoned and may dispose of same at Park Host’s expense.

4. BACKGROUND CHECK. This License Agreement is contingent upon successful completion of a background check.

5. CONDITION OF LICENSE AREA AS-IS. Park Host acknowledges the uniqueness of the License Area and accepts the current “AS-IS, IN ITS CURRENT CONDITION, WITH ALL FAULTS” condition existing on the date of execution of this License Agreement.

Park Host acknowledges Park Host has satisfied itself, by its own independent investigation, that the License Area is suitable for Park Host’s intended use and neither City nor its agents or representatives have made any representation or warranty as to the present or future suitability of the License Area for the Permitted Use by Park Host.

6. PARK HOST OBLIGATIONS. Park Host agrees as follows:

Docusign Envelope ID: 17043333-20B2-48B8-B864-F754AAAF7CBC

26.4 License Agreement 3
a. To maintain and keep the License Area and its contents in a good, clean, safe, and sanitary condition during the Park Host’s use as set forth herein. b. To not intentionally or negligently destroy, deface, damage, impair or remove any part of the License Area.
c. To provide City with all information necessary to obtain a Wastewater Discharge Permit and to meet the requirements of the permit throughout the duration of the term of this License Agreement.
d. To immediately notify City in writing of any defects or dangerous conditions in or about the License Area once the Park Host becomes aware of them. e. To comply with Park Host Guidelines listed in Exhibit B, attached hereto and incorporated herein.

7. CITY OBLIGATIONS. City agrees as follows:
a. To provide access to the License Area throughout the duration of the License Term. b. To apply for and obtain a Wastewater Discharge Permit on behalf of Park Host. City will pay all fees associated with the Wastewater Discharge Permit. c. To provide access to and pay for electrical, water, and sewer hook-up within the License Area.
d. To conduct a site inspection of the License Area upon the commencement and termination of the License Agreement.
e. To provide the Park Host with an orientation and training. f. To meet with the Park Host at least once every six (6) months to discuss Park Host’s performance while serving as Park Host. City will inspect the exterior of Park Host’s motorhome or recreation vehicle, and water, sewer, and power hookups during this semiannual meeting.
g. To provide Park Host a monthly schedule with Park Host hours.

8. ANIMALS. Animals and/or pets are not permitted in the License Area.

9. VEHICLES ONSITE. Vehicles shall be limited to one recreational vehicle (motorhome or travel trailer) and one additional motorized vehicle, as the parking area within the License Area allows.

Docusign Envelope ID: 17043333-20B2-48B8-B864-F754AAAF7CBC

26.5 License Agreement 4

10. GUESTS. Maximum occupancy of the License Area, including the Park Host, their family members, children of any age, and visitors, shall be no more than two (2) persons at any time. Occupancy by any individual guest for more than seven (7) consecutive days in any six (6) month period is prohibited and shall be considered breach of the License Agreement, unless authorized in writing by City.

11. FEES. In consideration of Park Host fully performing its obligations under this License Agreement and serving as Park Host, the City agrees not to charge a License Fee. City reserves the right to assess a License Fee with at least thirty (30) days’ prior notice to Park Host.

12. ALTERATIONS. Park Host shall obtain the City’s prior written consent for any alterations, improvements, additions or utility installations in, on, or about the License Area. Such proposed alterations, improvements, additions or utility installations shall be presented to the City in writing, with proposed detailed plans. If City gives its consent, the consent shall be deemed conditioned upon Park Host acquiring a permit or other approvals to do so from appropriate governmental agencies, if applicable. Park Host must provide City a copy of said permits or other approvals prior to the commencement of the work, and shall comply with all conditions of said permit or other approvals in a prompt and expeditious manner.

Consistent with this Section 12, Park Host may place awnings, synthetic turf, and small amounts of outdoor furniture within the License Area with City’s prior written approval.

13. HAZARDOUS OR TOXIC MATERIALS. Park Host shall comply, at Park Host’s sole expense, with all federal, state, and local statutes or regulations concerning environmental conditions, emissions, pollutants, and controls. Park Host shall not cause, store, use or permit any Hazardous Material (defined to include, but not limited to: (i) any material, substance or waste which is or hereafter shall be listed, regulated or defined by state or federal laws to be hazardous, acutely hazardous, extremely hazardous, radioactive toxic, or dangerous; (ii) asbestos or asbestos-containing materials; (iii) polychlorinated biphenyls (PCBs); (iv) radon gas; (v) laboratory wastes; (vi) experimental products, including genetically engineered microbes; (vii) petroleum, natural gas, or other petroleum product; and (viii) medical waste) to be brought upon, kept or used in or about the License Area by Park Host, its agents, employees, contractors, guests or invites, without the prior written consent of City, which City shall not be unreasonably withheld as long as Park Host demonstrates to City’s reasonable satisfaction that such Hazardous Material is necessary or useful to Park Host’s use of the License Area, does not violate any requirements of the City’s policies of fire, causality or public liability insurance and will be used, kept and stored in a manner that complies with all laws regulating any such Hazardous Material so brought upon or used or kept in or about the License Area.

If Park Host breaches any of its obligation stated herein, or if the presence of Hazardous Material on the License Area caused or permitted by Park Host results in contamination of the License Area, then Park Host shall indemnify, defend and hold City harmless from any Docusign Envelope ID: 17043333-20B2-48B8-B864-F754AAAF7CBC

26.6 License Agreement 5
and all claims, judgment, damages, penalties, fines, costs, liabilities or losses, including, without limitation, diminution in value of the License Area, damages for the loss or restriction on use or marketing of rentable or usable space of the License Area, and sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees which arise during or after the License term as a result of such contamination. Without limiting the foregoing, if the presence of any Hazardous Material on the License Area caused or permitted by Park Host results in any contamination of the License Area, Park Host shall promptly take all actions at its sole expense as are necessary to return the License Area to the condition existing prior to the introduction of any such Hazardous Material to the License Area; provided that City’s approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse effect on the License Area.

14. INDEMNIFICATION/WAIVER OF LIABILITY. Park Host agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) which arise from or are in any manner related to the entry on, occupancy, and/or use of the License Area under this License Agreement (including, but not limited to any improvements or personal property located therein) by Park Host, its officers, directors, employees, agents, representatives, invitees, guests, customers, contractors, subcontractors, suppliers, trespassers, or others acting on Park Host’s behalf or under Park Host’s authority or control. Park Host’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful misconduct of Indemnitees. Park Host’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses. This Section 14 shall survive the expiration or early termination of this License Agreement.

15. INSURANCE.
a. Park Host shall, throughout the term of this License Agreement, be responsible for insurance covering personal liability and property of the Park Host, and their personal guests, in connection with their use of the License Area under this License Agreement in the minimum amount of $300,000 for each occurrence. The insurance policies shall provide that the policies shall remain in full-force during the term of this License Agreement and shall not be cancelled, terminated or allowed to expire without thirty (30) days prior written notice to the City from the insurance company. b. Park Host shall, at their own expense, maintain throughout the duration of this License Agreement, automobile liability insurance, which shall include coverage for both bodily injury and property damage with an aggregate limit of $500,000.

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26.7 License Agreement 6
c. Park Host shall furnish certificates of said insurance for personal liability and property to the City, naming the City, its officers, officials, employees, agents, and volunteers as additionally insured by endorsement.
d. Park Host’s insurance coverage for any claims related to this License Agreement will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers.
e. If Park Host maintains broader coverage and/or higher limits than the minimums shown above, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Park Host. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.

16. REPAIR AND RESTORATION. If Park Host, its agents, contractors, guests, or invitees cause any damage to the License Area, or to City’s roads, infrastructure or other property and improvements in connection with the exercise of this License, Park Host shall repair and restore the damaged property to its original condition prior to Park Host’s use pursuant to this License Agreement. Park Host shall perform the repair and restoration required hereunder prior to the expiration of this License, or within ten (10) days of the earlier termination of Park Host’s rights hereunder. In the event that repair and restoration is performed following the termination this License, Park Host’s Indemnity and Insurance obligations in this License Agreement shall continue until repair and restoration is completed as provided herein. City shall have the right (but not the obligation) to make such repairs or replacements which are Park Host’s responsibility under this License Agreement without liability to Park Host for any loss or damage that may occur to Park Host’s business, and Park Host shall pay for all costs and expenses incurred by City in making such repairs and/or replacements, plus an administrative overhead fee of ten percent (10%) from the date of commencement of the work through the date of payment.

17. POSSESSORY INTEREST TAXES. Pursuant to the provisions of Revenue and Taxation Code Section 107.6, Park Host is hereby advised that the terms of this License Agreement may result in the creation of a possessory interest. Park Host shall pay before delinquency all possessory interest taxes, assessments, license fees, and other charges that are levied and assessed against such interest. “Possessory Interest Tax” means that tax imposed pursuant to laws of the State of California on the exclusive use of tax-exempt property and does not include taxes on Park Host’s inventory, personal, or any other tax or assessment that is presently or may, in the future be levied. On demand by City, Park Host shall furnish City with satisfactory evidence of these payments.

18. INSPECTION. City, and City’s agents and employees shall have the right to enter the License Area at any time to inspect the same, to see that Park Host is performing its obligations under this License Agreement, that no damage has been or is done to the License Area, and to protect any and all rights of City, to post such reasonable notices as City may desire as to protect the rights of the City, or in the interest of public health, safety, and welfare.

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19. CITY AUTHORITY. The City shall at all times retain exclusive final authority over the use of the License Area, including the use of fixtures thereon. The City shall have the right to promulgate and enforce any and all ordinances, rules and regulations, and to take action authorized by its police power, as the City, in its sole discretion, deems necessary to advance the public’s health, safety and welfare.

20. RIGHT TO ENTER FOR ALTERATIONS AND REPAIRS. It is agreed that the City has reserved and shall at all times have the right to alter, repair, and improve the nonexclusive areas which may affect the License Area. Park Host also waives any claims for damages against City by reason of City’s entry into or onto the License Area for the purpose of making repairs to the License Area or to any other area. City agrees to give Park Host reasonable notice of intention to make repairs, except in situations involving immediate peril and hazard to the public, when such entry shall be made summarily by City. City shall be the sole and exclusive judge as to what constitutes immediate peril and hazard to the public.

21. AMERICANS WITH DISABILITIES ACT. Throughout the term of the License Agreement, Park Host acknowledges and expressly accepts full responsibility and shall incur all costs and expenses for compliance with the requirements of the Americans with Disabilities Act (ADA) and any other applicable laws or regulations regarding the accessibility of the License Area (and the improvements located or to be located thereon) by disabled individuals. Park Host agrees to indemnify, defend, and hold harmless City (and its officials, officers, employees, agents, volunteers) from and against any claim, loss, expense or liability arising from Park Host’s failure to fully comply with such laws or regulations.

22. COMPLIANCE WITH LAWS. All activities of Park Host, its employees, and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations, including Park rules and regulations.

23. CONFLICTS OF INTEREST. Park Host acknowledges and agrees to comply with applicable provisions of conflict of interest laws and regulations, including the CA Political Reform Act (Gov’t. Code §§1090, 87100), Levine Act (Gov’t. Code §84308), and the City’s conflict of interest code, and make any necessary disclosures.

24. ASSIGNMENT PROHIBITED. Park Host shall not, either voluntarily or involuntarily, assign or encumber its interests in this License Agreement or allow any other person or entity (except Park Host’s authorized representatives) to operate under the terms of this License Agreement without the prior written approval and consent of the City. Any such assignment without prior written approval of the City shall be null and void.

25. WAIVERS. Any subsequent acceptance of License Fees hereunder by City shall not be deemed a waiver of any preceding breach of any obligation hereunder by Park Host other than the failure to pay the particular License Fees so accepted; and the waiver of any breach Docusign Envelope ID: 17043333-20B2-48B8-B864-F754AAAF7CBC

26.9 License Agreement 8
of any covenant or condition by City herein shall not constitute a waiver of any other breach regardless of knowledge thereof. Any waiver by City of any breach must be in writing.

26. FORCE MAJEURE. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of its obligation hereunder is prevented or delayed due to an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and not caused by the fault or negligence of the party obligated to perform under this License Agreement. If the License Area is damaged in part or as a whole during the license term thus necessitating repairs or otherwise restricting the use of the License Area by Park Host, City may in its sole discretion reduce or excuse payment of any applicable fees up to the period that the use of the License Area is restricted solely due to the above stated causes.

27. CITY OF SANTA CRUZ AS LICENSOR. Park Host acknowledges and understands that the City as Licensor is a municipality consisting of numerous offices, departments, agencies, and districts. Whenever a provision contained in this License Agreement or any extension, modification, or amendment requires the "written consent" of the City, such consent must be obtained from the then City Manager or Director of Parks and Recreation for the City of Santa Cruz, or their respective designee. Park Host may not rely on any statement or representation by any other employee, agent, or representative of City in obtaining such consent, and any such statement or representation other than the express written consent of the City Manager or Director of Parks and Recreations, or their respective designee, shall be null and void and have no effect. Nothing contained in this Section shall limit in any way the authority of any office, department, agency, or district of the City or County of Santa Cruz, California from approving or withholding consent to any event or activity regulated by local law.

28. MISCELLANEOUS.
a. This License Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and this License Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. b. If Park Host is comprised of more than one individual or entity, Park Host’s obligations and liabilities may be enforced against each of them, personally, jointly, and/or severally.
c. Except as City may specify in writing, Park Host shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Park Host shall have no authority, express or implied, pursuant to this License Agreement to bind City to any obligation whatsoever.

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26.10 License Agreement 9
d. This License Agreement shall be construed and interpreted in accordance with the laws of the State of California.
e. The unenforceability, invalidity, or illegality of any provision(s) of this License Agreement shall not render the other provisions unenforceable, invalid, or illegal. f. This License Agreement may only be amended in writing as agreed to by both Parties. g. Each party acknowledges that it has reviewed this License Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this License Agreement. h. The Parties may execute this License Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. Electronic signatures and fully executed copies of this License Agreement are deemed valid as originals.
i. The signatories to this License Agreement warrant and represent that each is authorized to execute this License Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this License Agreement.

29. NOTICES. If either party desires or is required to give notice to the other such notice shall be given in writing, via email and concurrently delivered by: (a) personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the fifth business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:

To CITY:

City of Santa Cruz
Mike Godsy
Parks Superintendent
323 Church St.

Santa Cruz, CA 95060
[email protected]
To PARK HOST:

Kenneth Castro
P.O. Box 66345
Scotts Valley, CA 95067
831-419-9024
[email protected]
Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.
[SIGNATURES ON FOLLOWING PAGE]
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26.11 License Agreement 10
IN WITNESS WHEREOF, the parties hereto have executed this License Agreement the day and year first herein written.

CITY:

By____________________________
Matt Huffaker
City Manager
Date__________________________

APPROVED AS TO FORM
________________________________
Office of the City Attorney
PARK HOST:

By____________________________
Kenneth Castro
Date__________________________
3/10/2026
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26.12 License Agreement 11

EXHIBIT A

LICENSE AREA
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26.13 License Agreement 12

EXHIBIT B

PARK HOST GUIDELINES
Park Host Duties and Responsibilities
• Park Host’s primary role is to be a visible representative of the City at the designated Park that serves as the “eyes and ears” for the City.
• Provide a motorhome or recreational vehicle suitable for living onsite in the License Area while serving as Park Host. The Park Host must ensure the front door of the motorhome or recreational vehicle is accessible to the public and free of obstructions and potential tripping hazards. Personal property must be stored out of sight of the public, except as may otherwise be approved in writing by City.
• Maintain a valid driver’s license and vehicle registration at all times for automobile and motorhome or recreational vehicle. Park Host shall provide City with copies of the required driver’s license and vehicle registration.
• Wear an approved Park Host vest, name badge, and maintain a neat appearance. • Promote compliance with Park rules and regulations.
• Be available during scheduled duty hours to respond to Park visitor inquiries with correct information in a courteous and thoughtful manner.
• Be observant of activities within the Park at all times and inform the City of any unusual occurrences.
• Maintain report logs and complete report forms provided by the City. • Assist City officials as needed with occasional special events, trash removal and restocking restrooms as necessary.
• Park Host will not perform law enforcement activities and will not place themselves in life-threatening or dangerous situations. The Park Host will not be assigned duties that place them in life threatening situations.
• Park Host must have an operational personal cell phone and an internet accessible personal device for communicating with the City and for downloading City provided documents, forms, schedules, permits, etc.

Park Host Standards of Conduct
• Park Host and guests of the Park Host are expected to conduct themselves in an appropriate and lawful manner and are subject to all applicable federal, state, and local laws.
• Park Host shall maintain sobriety at all times while serving as Park Host. • The unlawful taking, distributing, dispensing, possession or use of controlled substances or drugs by Park Host and/or their guest(s) is prohibited. • No guns, knives, pepper spray, and/or other weapons may be kept within the License Area and/or carried by the Park Host and/or their guests while in the License Area.

Kitchen knives are permitted.

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26.14 License Agreement 13
• With the exception of immediate relatives of the Park Host, no minors under the age of 18 are permitted inside the Park Host motorhome or recreational vehicle at any time unless accompanied by a parent or legal guardian.
• Park Host is discouraged from using personal property or equipment while serving as Park Host. City shall not be liable for loss, theft, of damage to Park Host personal property such as vehicles and bicycles, while being used on City business. • Park Host is not permitted to use or borrow City equipment for personal use.

Prohibited Activities
• Hanging clotheslines or ropes tied or nailed to trees/fence, bird feeders, yard art, lawn ornaments, and wind chimes, excessive outdoor lighting, and other items that distract from the Park image.
• Commercial deliveries or activities by Park Host or Park Host guests. • Home-based occupations, unless approved in writing by City. • Attaching antennas and/or satellite dishes to a vehicle, unless approved in writing by City.
• Private residential activities, including gardening and personal property storage.

Hours
• Park Host is expected to live onsite and be available to serve as Park Host six (6) days a week, including weekends and at varied times (including evenings) depending upon the season.
• Hours of service will be a minimum of twenty (20) hours per week and will not exceed thirty (30) hours per week.
• City will provide Park host with a monthly schedule that will include Park events and expected hours of service.
• Park Host will provide City with written notice of anticipated absences for periods of time longer than forty-eight (48) hours a minimum of one (1) week prior to the expected absence.

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26.15 City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Public Works
SUBJECT: Metro Rapid Corridors Project (c402615) – Agreement and Budget Adjustment (PW)
LOCATION: District 4
RECOMMENDATION: Motion to:
1) Authorize the City Manager to enter into a reimbursement agreement, in a form acceptable to the City Attorney, with Santa Cruz Metropolitan Transit District, detailing the parties’ responsibilities with respect to the design, construction, and maintenance of the Metro Rapid Corridors project. The Public Works Director is authorized to enter into amendments within the approved budget;
2) Adopt a resolution to amend the FY 2026 budget and appropriate funds in the amount of $1,875,000 for revenue and expenditures of the Metro Rapid Corridors Project (c402615); and 3) Authorize the City Manager to acquire necessary right-of-way at the southern corners of the Soquel Avenue and Front Street intersection in accordance with APO I28.

BACKGROUND: The adoption of the Downtown Plan Amendment in 2017 spurred new development along Front Street, including the redevelopment of the Metro Transit Center to include new affordable housing. With that project, transit access was removed from Pacific Avenue and concentrated onto Front Street, where all transit service to downtown will access the new transit center. The design of Front street has evolved to accommodate new development and increased transit service.

At its November 18, 2025, meeting, City Council approved the first phase of the Metro Rapid Corridors Project for design and construction. The first phase included a transit lane and traffic signal improvements between Soquel Avenue and Laurel Street along Front Street. That effort is anticipated to be under construction during the summer and fall of 2026. At that meeting, the work at the intersection of Soquel Avenue and Front Street was deferred to a later phase. This project completes that second phase of work and further expands the improvements.

The Santa Cruz Metropolitan Transit District (Metro), County of Santa Cruz and Santa Cruz Regional Transportation Commission were awarded an SB1 Congested Corridors Grant as part

27.1 of a regional effort to improve travel between Watsonville and Santa Cruz. Metro’s portion of the grant improves transit travel time, reliability, and customer amenities on its major routes between Watsonville and Santa Cruz. The City of Santa Cruz (City) will partner with Metro to design and implement those improvements within the City’s jurisdiction. The construction grant will formally be awarded at the May 2026 California Transportation Commission meeting.

DISCUSSION: The design of the Metro Rapid Corridors is being led by Metro, with input from the City, and is expected to be completed in spring 2027. Construction of the project will be led by City and is expected to begin in the summer or fall of 2028. The project is on an accelerated timeframe due to grant requirements. Council action is requested to approve the draft reimbursement agreement that is attached to this report and details the responsibility of each agency.

The Metro Rapid Corridors project includes multiple improvements to the corridors serving Routes 1 and 2 between Santa Cruz and Watsonville. Those transit lines provide service at least every 20 minutes, qualifying as high-quality transit. The new infrastructure to support those lines includes six transit islands along Water Street and Soquel Avenue, transit signal priority to reduce delay at traffic signals, new crosswalks to support access to transit stops, dedicated transit lanes on Front Street to speed up service, and amenities such as shelters, signage, and trash receptacles to improve the rider experience at bus stops. Together these improvements reduce transit travel time, improve reliability of the service, reduce operational costs, and enhance rider experience, which all lead to increased ridership.

The majority of the improvements will occur downtown along Front Street. Where River Street meets Front Street, southbound traffic will be prioritized so it no longer must stop and take a left onto Front Street by reconfiguring the intersection. Front Street will instead be angled into River Street as called for in the Downtown Plan (page 118). This will improve travel time along River Street and Front Street for all vehicles.

Metro will move operations into their redeveloped Transit Center on Front Street estimated in early 2027 and prior to this project. The Metro move will return River Street South to its previous conditions but create the need for new bus stops at Cooper Street. The remaining parking stalls along Front Street, south of Cooper Street, will be removed to accommodate a new inbound transit stop and short transit lane. The concept design in this area is being refined further and will investigate adding parking on Front Street between Water Street and River Street by converting existing parallel parking to angled parking.

The intersection of Soquel Avenue and Front Street will be reconstructed to improve crosswalks, signal operations, and roadway alignments as presented previously. These modifications will help reduce transit travel times, while accommodating new trips from adjacent redevelopment.

The design consultant, hired by Metro, has already begun concept design and will be presenting those concepts to the Downtown Commission, Transportation and Public Works Commission, and Downtown Association in June and July. Feedback from those parties will be incorporated into the final design as feasible. The design consultant will complete the design of the Front Street and Soquel Avenue intersection based on previously approved concepts. The final design will return to City Council in Spring 2027.

27.2 The project is generally within the existing City right-of-way with two exceptions. At 525 Front Street (APN 005-153-23), the project will require approximately 40 square feet to build accessible curb ramps. The required property is already paved as a sidewalk, however not formally in the right-of-way, and this project will acquire property to address that discrepancy.

At 530 Front Street (APN 005-151-46), the entitled project is already conditioned to dedicate property to the City at the time of its building permit issuance. That effort will be coordinated and completed as part of this project, likely prior to the 530 Front Street project acquiring a building permit.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The CEQA determination was completed by Metro and determined to be Statutory Exempt per PUC 210820(c) and 21080.25(b)(3).

HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies Conditions: Healthy Environments and Economic Security and Mobility. Transit Service between Watsonville and Santa Cruz connects housing in south county with jobs in the north county. This project improves connectivity and access to jobs through improved transit service.

Transit Service is an environmentally friendly and safer alternative to automobile use. Improving transit service supports the Climate Action Plans goal of reducing automobile trips.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: Yes

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is no impact to the general fund. The design and right-of-way for the project will be funded by Developer Contributions and the Traffic Impact Fee. The construction will be funded by Measure D, Traffic Impact Fee, Developer Contributions, and a Congested Corridors Grant secured by Metro. The proposed budget adjustment covers project expenditures using currently available funds from:
 Measure D ($1,500,000)
 Traffic Impact Fees ($194,532)
 Received developer contributions ($180,468)
The Public Works Department will request a subsequent budget adjustment from the City Council once the exact amounts for additional developer contributions and grant revenues are determined.

Prepared By:

Matt Starkey, P.E.

Transportation Manager
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT AGREEMENT.PDF

2. BUDGET ADJUSTMENT.PDF

27.3 REIMBURSEMENT AGREEMENT FOR METRO RAPID CORRIDORS PROJECT By and Between

SANTA CRUZ METROPOLITAN TRANSIT DISTRICT
and

CITY OF SANTA CRUZ

27.4 -1-

METRO RAPID CORRIDORS REIMBURSEMENT AGREEMENT

THIS METRO RAPID CORRIDORS REIMBURSEMENT AGREEMENT
(“Agreement”) is entered into as of ______________, 2026 (“Effective Date”), by and between the SANTA CRUZ METROPOLITAN TRANSIT DISTRICT (“Metro”), a public transit district and the CITY OF SANTA CRUZ, a California municipal corporation (“City”) (each is referred to individually as a “Party” and collectively, as the “Parties”) .

RECITALS
The Parties enter into this Agreement on the basis of the following:

A. The Metro and City have a mutual interest in making certain road improvements on Front Street, from Soquel Ave to Water Street for the public’s use and benefit.

B. The Metro and City jointly applied for grant funds related to these improvements, which is a part of the Metro’s Rapid Corridors Project (“Project”). The Metro was the recipient of state grant funds for the Project; with grant funds to be used in part to pay for the design and construction plans, and implementing the construction of these certain improvements located within the City (“City’s Portion of Improvements” or “Work”). The City’s Portion of Improvements include pavement resurfacing, traffic striping upgrades, traffic signal upgrades, and pedestrian facility upgrades, as more specifically described below.

C. In consideration of the City implementing the construction of the City’s Portion of Improvements, the Metro agrees to reimburse the City for construction management and construction costs associated with City’s Portion of Improvements, based on the terms and conditions set forth below.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated into this Agreement by this reference, and the covenants and promises hereinafter contained, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.0 DEFINITIONS.

The following terms as used in this Agreement shall have the meanings given unless expressly provided to the contrary:

Actual Costs. The full costs to the City to provide the City’s Portion of Improvements.

Actual Costs include, but not limited to, the Contractor’s direct and indirect labor costs, equipment, material and supply costs, monitoring and testing costs, permitting costs, costs of third-party vendors or consultants, plus the City’s Construction Management costs.

27.5 -2-
City’s Portion of Improvements. This shall mean the “Work” or the portion of the Metro Rapid Corridors Project, within the territorial limits of the City, which involves 4 total transit boarding islands on Water Street; transit signal priority (cloud-based system) at City traffic signals on Soquel Avenue, Water Street, and Front Street; intersection improvements at Soquel Avenue/Front Street and Front/River Streets and transit lanes; and roadway rehabilitation on Front and River Streets between Soquel Avenue and Water Street.

Construction Management. Services to oversee the construction and closeout of a project and ensure the project meets the design specifications.

Maintenance. Those routine or emergency activities that are necessary to achieve the useful life, maintain the integrity and ensure the continued operations of the traffic signal interconnect system, including but not limited to, routine maintenance and emergency maintenance.

2.0 DESIGN/CONSTRUCTIONS PLANS AND DESIGN CONTRACT.

2.1 Final Plans and Specifications. Metro agrees to be responsible for hiring a consultant to prepare the Project design and construction plans, including the City’s Portion of Improvements, which is the subject of this Agreement. Metro will provide the City an opportunity to review and provide input regarding the design and plans related to the City’s Portion of Improvements, and to have the City approve the final design and plans.

2.2 Design Contract. Metro agrees to require in its contract with the design consultant that its consultant:
a. defend, indemnify, and hold harmless City, its officials, officers, and employees to the same extent and under the same terms and conditions as consultant is required to defend, indemnify, and hold harmless Metro and its related parties in the design consultant contract; and b. include the City, its officials, officers, and employees as Additional Insureds on the Commercial General Liability and Automobile insurance policies.

2.3. Cost of Design
City will pay for the design of the traffic island at the intersection of Soquel Avenue/Front Street by Metro’s consultant up to $299,735.

3.0 CONSTRUCTION.

3.1 Competitive Bidding. City will comply with the applicable legally required competitive bidding process to select a contractor (the “Contractor”) to construct the City’s Portion of Improvements.

27.6 -3-

3.2 Construction Contract. City shall submit the proposed construction Contract for the City’s Portion of Improvements (the “Construction Contract”) to Metro for review and approval. Metro shall have ten (10) days to review the Construction Contract and make sure it comports with the requirements of this Agreement.
a. Warranty. The Construction Contract shall require the Contractor to warranty the Work for materials and workmanship for a period of at least one (1) year after final written acceptance of the Work. b. Insurance. The Construction Contract shall require the Contractor to comply with the insurance terms stated in Exhibit A, below. City shall also have Contractor sign the acknowledgement of insurance requirements on Exhibit A.
c. Indemnity from Contractor. The Construction Contract shall include the following indemnity provision:

Contractor agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, Metro, and their respective officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) caused by or resulting from the negligence, recklessness, or willful misconduct of Contractor, Contractor’s officers, employees, agents, or subcontractors in any way related to this Agreement. Contractor’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful misconduct of Indemnitees. Contractor’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses. This
indemnification clause shall survive termination of this Agreement. d. Bonds/Security. City shall require its contractor to furnish, concurrently with the execution of the Construction Contract, a labor and materials bond, and performance bond in the amount of 100% of the estimated costs of the City’s Portion of Improvements, naming the City and Metro as the beneficiaries or loss payees.
e. Change Orders. The construction contract must state that no change orders for City’s Portion of Improvements will be made without City and Metro’s prior written permission.
f. Subcontractors. The Construction Contract will require that all subcontractors of the Contractor shall be subject to the same Insurance and Indemnity requirements as that required of the Contractor.

27.7 -4-
g. Additional Benefits. Any additional insurance or indemnity benefits that the Construction Contract grants to the City will likewise be given to the Metro.

3.3 Construction in Accordance with Approved Plans and Specifications.

The Work shall be implemented in strict conformity with this Agreement and the plans for the City’s Portion of Improvements which are to be approved by both City and Metro.

3.4 Construction Submittals.

City shall provide to the Metro all material submittals, traffic control plans and construction schedule from the Contractor for all of the City’s Portion of Improvements. Metro shall review and approve all submittals prior to purchase and installation of new traffic signal interconnect equipment.

3.5 Construction Inspection
a. City shall provide construction inspection services for all City’s Portion of Improvements and will verify the Work was performed in accordance with the approved plans and specifications.

3.6. Change Orders and Design Directives During Construction The City will be the lead agency for reviewing and approving Change Orders for City’s Portion of Improvements and the Metro will have an opportunity to provide input in this process. Any design changes during construction regarding the City’s Portion of Improvements that result in increased material costs or extension of anticipated completion dates must be approved in writing by both City and Metro.

3.7. Construction Schedule.

City shall issue a Notice to Proceed to its Contractor to commence construction of the City’s Portion of Improvements. Once construction has commenced, it shall be diligently pursued to completion, and shall not be abandoned for more than thirty (30) consecutive days, except when due to causes beyond the control and without the fault of the Contractor or City. Metro will be notified of any significant changes to the construction schedule.

4.0 REIMBURSEMENT AND SHARED COST OF CONSTRUCTION.

4.1. Metro Payment Obligation.
a. Metro agrees to reimburse the City for the Actual Costs of the construction of the City’s Portion of Improvements, except for the City’s contribution toward the pavement costs as stated in section 4.2.

27.8 -5-
b. Metro shall have thirty (30) days from receipt of invoices to provide payment to the City for the construction costs. City will submit invoice draw requests on a monthly basis to ensure timely payment of invoices.

Once the Notice of Completion has been issued by the City, the City will submit a final invoice to the Metro for the City’s Portion of Improvements. The Metro shall provide full payment to the City no later than 60 calendar days from the date of issuance of the final invoice.

4.2. City Payment Obligation.

City agree to contribute the amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) toward the pavement costs for the City’s Portion of Improvements.

4.3. Payment for Cost Increases.
a. Metro agrees to pay for any cost increases agreed to by the Parties related to the Work.
b. This Agreement is contingent upon the appropriation of sufficient funding by the Parties for the Work covered by this Agreement. If funding is reduced or eliminated by either Party for the Work covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement. For the avoidance of doubt, City is not obligated to implement the City’s Portion of Improvements if there are insufficient funds for their construction.

5.0 OWNERSHIP, OPERATION AND MAINTENANCE AGREEMENT

5.1 Acceptance of Project
The Metro will endeavor to confirm and accept in writing to the City that the Work has been completed to Metro’s satisfaction no later than 15 calendar days from being advised by the City that such Work under the Project has been completed. If the Metro does not find that the W is acceptable, it will notify the City of its decision, in writing, within 15 calendar days of receipt of notification from the City that the Work is complete. If the Metro does not confirm and does not accept in writing to the City that the Work has been completed to Metro’s satisfaction within 15 calendar days from being advised by the City that the Work has been completed, or advise the City in writing that the Work is unacceptable, the Work shall be deemed accepted by the Metro. Upon receipt of the Metro’s written confirmation of completion and acceptance and completion of the Work, the City shall issue a Notice of Completion for the Work.

27.9 -6-

5.2 Infrastructure Ownership
a. The Parties’ respective ownership and maintenance obligations regarding the new infrastructure are set forth in Table 1.
b. Upon City’s acceptance of the City’s Portion of Improvements, the Metro shall relinquish all interest it might have in all new equipment to be owned by the City, as identified in Table 1.

New Infrastructure Beneficiary Owner Maintenance
Transit Islands Joint City City
Transit Features (Shelters,
Trash Receptacles, Sign,
fence)
Metro Metro Metro
Roadway Improvements
and Traffic Signals
(Pavement, markings,
roadway signage, drainage,
signals)
Joint City City
Roadway Improvements –
Red Transit Lane Markings
Metro City Joint
TSP – Traffic Signal
Equipment
Metro City City
TSP – Cloud based system,
communication to City
Signal Server &
subscription fees
Metro Metro Metro
TSP – Communication
between City Signal Server
and Traffic Signals
Joint City City
TSP – City Signal Server
and Network
Joint City Metro
Table 1: List of new infrastructure, its beneficiary, owner, and maintenance obligations.

5.3 Operation and Maintenance by City.
a. Except as otherwise stated herein, City shall perform all required maintenance and repairs on the City-owned new infrastructure in accordance with applicable legal and industry standards.
b. City has the discretion to remove the red transit lane markings in future roadway maintenance efforts if there is inadequate City funding to re-apply them.

The City may also request that Metro contribute to funding the long-term maintenance of red markings in the transit lanes.

27.10 -7-
c. If Metro terminates transit service for over a year at any location(s) of the City’s Portion of Improvements, the City may remove the improvements with prior written notification to Metro.

5.4 Operation and Maintenance by Metro.

Metro shall perform all required maintenance and repairs on the Metro-owned new infrastructure in accordance with applicable legal and industry standards.

Metro is also responsible, at its sole cost and expense, for the Cloud-based system and maintaining the subscription related to the Traffic Signal Equipment (TSP) so that the TSP works properly.

5.5 Effect and Duration of Obligations.
a. The Parties’ respective ownership and maintenance obligations of the new infrastructure relating to City’s Portion of Improvements shall remain in effect in accordance with grant requirements, and as the Parties mutually agree. b. The City retains the right to modify or remove the infrastructure it owns in its jurisdiction, and will endeavor to notify Metro, if Metro’s operations will be affected.

6.0 INDEMNIFICATION.

6.1 Mutual Indemnification.

Each Party (“Indemnitor”) agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the other Party, its officials, officers, employees, and agents (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) in proportion to and to the extent such Losses are caused by or result from: 1) the indemnitor’s breach of their obligations under this Agreement; or 2) the negligence, recklessness, or willful misconduct of the Indemnitor, Indemnitor’s officials, officers, employees, agents, contractors, or subcontractors that is in any way related to this Agreement.

6.2 Duration of Indemnification.

The indemnification provisions set forth above shall survive the expiration or earlier termination of this Agreement to the fullest extent permitted by law.

7.0 DEFAULTS, REMEDIES AND TERMINATION.

7.1 Defaults -- General.
a. Subject to the extensions of time set forth in this Agreement, failure or delay by either Party to perform any term or provision of this Agreement constitutes a default under this Agreement; provided, however, the Party shall not be deemed

27.11 -8-
to be in default if (i) such Party cures, corrects, or remedies such default within thirty (30) days after receipt of a notice specifying such failure or delay, or (ii) for such defaults that cannot reasonably be cured, corrected, or remedied within thirty (30) days, if such party commences to cure, correct, or remedy such failure or delay within thirty (30) days after receipt of a notice specifying such failure or delay, and diligently prosecutes such cure, correction, or remedy to completion. b. The injured Party shall give written notice of default to the Party in default, specifying the default complained of by the injured Party. Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until thirty (30) days after giving such notice. Except as otherwise expressly provided in this Agreement, any failure or delay in giving such notice or in asserting any of its rights and remedies as to any default shall not constitute a waiver of any default, nor shall it change the time of default, nor shall it deprive either Party of its rights to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.

7.2 Dispute Resolution.

The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either Party may initiate negotiations by providing written notice in letter form to the other Party, setting forth the subject of the dispute and the relief requested.

Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the Parties mutually agree, then prior to pursuing formal legal action, the Parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the Work involves or qualifies as a public works project, the Parties agree to comply with Public Contract Code sections 9204(e) and 20104-20104.6, but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq.

7.3 Remedies.

In addition to any other rights or remedies and subject to the restrictions set forth in this Agreement, the Parties reserve all remedies available to either or both of them at law or in equity to seek specific performance of the terms of this Agreement, or to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the State of California, County of Santa Cruz.

27.12 -9-

7.4 Rights and Remedies are Cumulative.

Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise by any party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by another Party.

7.5 Metro’s Right to Terminate.
a. In the event that the Metro is not in default under this Agreement, the Metro may terminate this Agreement if the City is in default of any of the covenants, terms, and conditions of this Agreement, and the City has not cured any such default by expiration of all applicable cure periods. b. In the event of any of the foregoing, the Metro, at its option, may deliver written notice of intent to terminate to the City, not less than sixty (60) calendar days prior to an effective termination date.
c. In the event the Metro terminates this Agreement with the City and it results in the cancellation of the construction contract for the City’s Portion of Improvements, the Metro shall be responsible for reimbursing the City for the expenses owed for the Work up to the effective date of the termination. The Metro shall reimburse the City within 60 days from the City’s issuance of its final invoices related to the Work.

7.6 City’s Right to Terminate.
a. In the event that the City is not in default under this Agreement, the City may terminate this Agreement if the Metro is in default of any of the covenants, terms, and conditions of this Agreement, and the Metro has not cured any such default by expiration of all applicable cure periods.
b. In the event of any of the foregoing, the City, at its option, may deliver written notice of intent to terminate to the Metro, not less than sixty (60) calendar days prior to an effective termination date.
c. In the event the City terminates this Agreement with the Metro and it results in the cancellation of the construction contract for the City’s Portion of Improvements, the City will issue an invoice to Metro for the expenses owed for the Work up to the effective date of the termination.

8.0 GENERAL PROVISIONS

8.1 Notices, Demands, and Communications Between the Parties.

Formal notices, demands, and communications between Metro and City shall be sufficiently given in writing, via email, and concurrently delivered by: (a)

27.13 -10-
personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:

If to Metro:
with a copy to:

Santa Cruz Metropolitan Transit District
Attn: _________, Chief Financial Officer
110 Vernon Street
Santa Cruz, CA 95060
Email:

Hanson Bridgett, LLP.
1676 North California Boulevard, Suite 610
Walnut Creek, CA 94566
Email:

If to City:

with a copy to:

City of Santa Cruz
Public Works Dept.
809 Center Street, Room 201
Santa Cruz, CA 95060
Attn: Matt Starkey, Transportation Manager
Email: [email protected]
City of Santa Cruz
Attn: City Attorney
333 Church Street
Santa Cruz, CA 95060
[email protected]
Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.

8.2 Conflicts of Interest.

No member, official, officer, employee, agent, representative, or consultant of the Parties shall have any personal interest, direct or indirect, in this Agreement nor shall any such member, official, officer, agent, representative, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she has a direct or indirect interest. Each Party warrants that it has not paid or given, and will not pay or give, any such member, official, officer, employee, agent, representative, or consultant of the other Party any money or other consideration for obtaining this Agreement.

27.14 -11-

8.3 Force Majeure: Extension of Time of Performance.

No Party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each Party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement, and seek a reasonable extension of time to perform. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement.

8.4 Assignment. This Agreement may not be assigned without the express written consent of the non-assigning Party, which consent shall not be unreasonably withheld.

8.5 Contract Interpretation. This Agreement is the product of negotiations among the Parties, and it shall not be construed as if it had been prepared by one of the Parties, but rather as if all of the Parties have prepared the same. Any rule of construction to the effect that ambiguities are to be resolved against the drafting Parties shall not apply in interpreting this Agreement.

8.6 Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect.

8.7 Relationship of Parties - No Agency. This Agreement does not create any joint venture, partnership, or agent relationship between any of the Parties hereto.

Neither Party shall have authority, express or implied, to act on behalf of the other Party in any capacity whatsoever as an agent. Neither Party shall have authority, express or implied, pursuant to this Agreement to bind the other Party to any obligation whatsoever.

8.8 Governing Law. This Agreement shall be governed by the laws of the State of California.

8.9 Additional Documents. The agreements set forth herein are binding and enforceable obligations of the Parties subject to the limitations set forth above.

However, it is anticipated that some or all of the Parties hereto or their affiliates may be entering additional documents or agreement in furtherance of the agreements expressed herein.

8.10 Cooperation. The Parties hereto acknowledge that this Agreement does not describe all of the actions, documents and approvals necessary for the Project; and

27.15 -12-
each Party agrees to cooperate with the other Parties as may be necessary to achieve the purposes of this Agreement.

8.11 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same instrument. A .pdf/electronic of a duly executed copy of this Agreement or of any document signed pursuant to this Agreement shall be deemed for all purposes as receipt of an originally signed document, and any such copy bearing a .pdf/electronic signature shall be binding upon, and enforceable against, the Party to be charged thereby.

8.12 Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement. [End of Agreement – Signature Page Follows]

27.16 -13-
IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective [as of the date written above] [as of the later of the dates set forth next to the signatures below (the “Effective Date”), which date shall be inserted into the preamble to this Agreement].

METRO:

SANTA CRUZ METROPOLITAN TRANSIT DISTRICT
By:______________________________
Name: ________________
Its: CEO/General Manager
CITY:

CITY OF SANTA CRUZ
By:______________________________
Matt Huffaker
Its: City Manager
Approved as to form:
_______________________________
Office of City Attorney

27.17 EXHIBIT A

INSURANCE REQUIREMENTS
Contractor’s Insurance
Prior to commencement of construction, Contractor for the City’s Portion of Improvements will maintain and comply with the Insurance Requirements as set forth below.

Contractor will insure the City and Metro against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work described in the City/Contractor Construction Contract or contract documents. The insurance coverages required shall not in any way limit the liability of the Contractor.

1. Certificate Requirements
The City and Metro will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
• Certificate(s) will show current policy number(s) and effective dates, • Coverage and policy limits will meet, or exceed, requirements below, • The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
• Certificate will be signed by an authorized representative, • An endorsement will be provided to show the City, its officers, officials, employees, agents, and volunteers as additional insureds.

2. Minimum Scope and Limits of Insurance
Contractor shall acknowledge that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Contractor maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.

Coverage will be at least as broad as:
• COMMERCIAL GENERAL LIABILITY (CGL): $2,000,000 PER OCCURRENCE; $4,000,000 AGGREGATE
Proof of coverage for $2 Million per occurrence and $4 Million in the aggregate including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL.

27.18 -ii-
• AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
• WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease. The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor and its employees.
• CONTRACTORS’ POLLUTION LIABILITY and/or ASBESTOS POLLUTION LIABILITY (CPL) (if project involves environmental hazards) with limits no less than $2,000,000 per occurrence or claim, and $4,000,000 policy aggregate.

1. If the services involve lead-based paint or asbestos identification / remediation, the Pollution Liability shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification / remediation, the Pollution Liability shall not contain a mold exclusion and the definition of “Pollution” shall include microbial matter including mold.

2. The Automobile Liability policy shall be endorsed to include Transportation Pollution Liability insurance, covering hazardous materials to be transported by Contractor pursuant to the Agreement. This coverage may also be provided on the Contractors Pollution Liability policy.
• BUILDER’S RISK (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.

Builder’s Risk (Course of Construction) Insurance
Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.

3. Other Insurance Provisions
• ADDITIONAL INSURED STATUS
The City, Metro, and their respective officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL and automobile insurance policies with respect to liability arising out of work or operations performed by or on behalf of Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage will be provided in the form of an endorsement to Contractor’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of

27.19 -iiiboth CG 20 10 CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
• PRIMARY COVERAGE
For any claims related to this Agreement, Contractor’s insurance coverage will be primary insurance as respects the City, Metro, and their respective officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Contractor’s insurance and will not contribute with it. • NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City and Metro.
• WAIVER OF SUBROGATION
Contractor hereby grants to the City and the Metro a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City and the Metro by virtue of the payment of any loss, including attorney’s fees under such insurance. Contractor agrees to obtain any endorsement. that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City or Metro has received a waiver of subrogation endorsement from the insurer.
• EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Contractor may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, SelfInsured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.
• DURATION OF COVERAGE
CGL & Excess Liability/Umbrella policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
• SELF-INSURED RETENTIONS
Self-insured retentions must be declared to and approved by the City. City may require Contractor to purchase coverage with a lower retention or provide proof of

27.20 -ivability to pay losses and related expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
• ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
• SUBCONTRACTORS
Contractor shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each subcontractor. Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City, its officers, officials, employees, and agents are named as additional insureds on insurance required from its subcontractor(s). • VERIFICATION OF COVERAGE
Contractor will furnish the City and Metro with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL, and automobile policies listing all policy endorsements to be approved by the City before work commences.

However, failure to obtain the required documents prior to the work beginning will not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Contractor Acknowledgement:

The undersigned, as the authorized representative for Contractor acknowledges these insurance requirements and understands that they are required for Contract’s construction of the project. _____________________________ Dated: ___________________________ Name: _______________________
Contractor’s __________________

27.21 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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 Clear Form
2026
05/05/2026
Design and construction of intersection and transit improvements along Front Street/River Street between Soquel Avenue and Water Street, inclusive of the intersections at Soquel/Front and Front/River. 311-00-00-0000-49169 c402615 990-0-0 From City Measure D 1,500,000 311-00-00-0000-49124 c402615 925-0-0 From Traffic Impact Fee 194,532 311-40-64-9320-49640 c402615 518-0-0 Developer Contributions 180,468 1,875,000
311-40-64-9320-57304 c402615 100-2020-0 Street Systems 1,875,000 224-00-00-0000-59103 To General CIP 1,500,000
226-00-00-0000-59103 To General CIP 194,532
3,569,532
-1,694,532
Shelley
Horrow
Digitally signed by
Shelley Horrow
Date: 2026.05.12
07:47:27 -07'00'
Digitally signed
by Emily Burton
Date: 2026.05.21
'17:56:10 -07'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2026.05.27
11:50:56 -07'00' 27.22
City Council

AGENDA REPORT
DATE: 05/21/2026
AGENDA OF: 06/09/2026
DEPARTMENT: Water
SUBJECT: Second Amendment to the Professional Services Agreement with Miller Maxfield, Inc. for Communications and Planning in Support of the Water Department and its Capital Investment Program (WT)
LOCATION: Water Service Area
RECOMMENDATION: Motion to:
1) Authorize the City Manager to execute the Second Amendment to the Professional Services Agreement, in the form accepted by the City Attorney, with Miller Maxfield, Inc. of Santa Cruz, CA for Communications and Planning in support of the Water Department and its Capital Investment Program;and
2) Authorize the Water Director to revise the Second Amendment Scope of Work and execute resulting future Amendments that are within the approved budget.

BACKGROUND: In 2024, following a Request for Qualifications (RFQ) process, the City entered into Professional Services Agreements with seven firms to support City staff in the areas of business consulting and communications. Miller Maxfield, Inc. was selected as one of these firms.

Each of the seven firms operates under an individual Master Service Agreement (MSA), a contracting model that establishes a zero-dollar master contract for related professional services.

As project, program, or department-specific needs arise, amendments to the MSA are executed, defining the scope of work, schedule, and budget for each assignment. Amendments exceeding the formal bid limit of $100,000 require Council approval. The First Amendment to the MSA with Miller Maxfield, Inc. was in the amount of $9,120 for Wharf recovery advertising.

This contracting approach streamlines procurement by reducing the need to negotiate separate contract terms for each project, provides flexibility to scale consultant support based on operational needs, and promotes efficient and consistent delivery of services.

DISCUSSION: Consistent with the recommendations of the Water Supply Advisory Committee, as approved by City Council, and the City Council-adopted Securing Our Water Future policy, the Water Department continues to invest in water infrastructure and water supply

28.1 augmentation projects. Effective community engagement and communication remain essential to the successful implementation of these initiatives.

The Water Department has maintained an ongoing partnership with Miller Maxfield, Inc., to support the development and implementation of the Our Water Our Future program - communications related to water supply reliability, system resiliency, and climate adaptation.

The proposed Second Amendment to the MSA is in an amount not to exceed $120,000. With oversight and direction from City staff, this contract amendment will support the continued development and implementation of projects under the Our Water Our Future program.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a project under CEQA because the communications and planning support services provided do not have the potential to cause a physical change in the environment directly or indirectly.

HEALTH IN ALL POLICIES (HiAP): Continued community engagement services is consistent with the Health in All Policies pillars of sustainability and public health, in that the work promotes efficient and sustainable water consumption and educates the community of efforts to ensure access to reliable, high-quality drinking water.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available in the Water Department’s Operating Budget for $120,000.

Prepared and Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Hufffaker
City Manager
ATTACHMENTS:

1. SECOND AMENDMENT.PDF

28.2 City of Santa Cruz Second Amendment to Professional Services Agreement Miller Maxfield, INC, On-Call Communications