Seal Beach City Council
September 14, 2026

On October 28, 2024, City Council adopted Resolution 7569, awarding a Public Works Agreement to R.I.C. Construction Co., Inc. (R.I.C.) for the Project in the amount of $1,227,737, allocating up to $123,000 for additional work request, and appropriating $111,430 for optional wet well relining should the construction inspection determine that the work was warranted.

During construction, a total of 12 change orders were issued. The change orders included the wet well relining work, electrical upgrades, abandonment of unforeseen infrastructure, and non-compensable working-day extensions associated with material procurement and utility company coordination delays outside of R.I.C.’s control.

The Project was inspected, meets all standards and requirements within the Project specifications, and has been completed to the satisfaction of the City Engineer. It is requested that the City Council formally accept the Project, direct staff to file a Notice of Completion with the Orange County Clerk-Recorder’s Office and release the retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.

ENVIRONMENTAL IMPACT:

This item complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15301 Class 1 Subsection (b), as the work involves alternation to an existing publicly owned utility for wastewater conveyance.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved the resolution as to form.

FINANCIAL IMPACT:

The approved construction contract amount plus established construction contingency totals $1,462,167. The actual amount used was $1,460,553.97.

The table below presents a breakdown of the total construction Project cost:

Description Amount
Construction Bid Items
Contract Change Orders
$ 1,227,737.00
$ 121,386.97
Wet Well Lining $ 111,430.00
Project Cost $ 1,460,553.97
Unspent funds will be returned to the original funding source.

RECOMMENDATION:

That the City Council adopt Resolution 7814:

1. Accepting the completion of the Sewer Pump Station 35 Upgrades, CIP SS1903, by R.I.C. Construction Co., Inc. in the amount of $1,460,553.97; and,

2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.

SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, City Manager ATTACHMENTS:

A. Resolution 7814
B. Notice of Completion
RESOLUTION 7814

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
ACCEPTING COMPLETION OF THE SEWER PUMP STATION 35
UPGRADES, CIP SS1903
NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:

Section 1. The City accepts the completion of the Sewer Pump Station 35 Upgrades, CIP SS1903 (Project), by R.I.C. Construction Co., Inc. in the amount of $1,460,553.97 for the work performed.

Section 2. The City Clerk is hereby directed to file a “Notice of Completion” for the Project with the Orange County Clerk-Recorder within fifteen (15) days of the date of this resolution and to release retention thirty-five (35) days after the recordation of the Notice of Completion contingent upon no claims being filed on the Project.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of September 2026 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7814 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of September 2026.

Gloria D. Harper, City Clerk

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO

CITY OF SEAL BEACH
Attn: City Clerk
211 - 8th Street
Seal Beach, CA 90740
Space of above this line for Recorder’s use.
*** No Recording Fee Pursuant to Government Code Sections 6103 and 27383 ****

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion.

Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is: City of Seal Beach.

3. The address of the owner is: 211 – 8th Street, Seal Beach, CA 90740.

4. The nature of the interest or estate of the owner is: In Fee. The City of Seal Beach.

5. A work of improvement on the property hereinafter is described as substantially completed on August 5, 2026. The work was Sewer Pump Station 35 Upgrades, CIP SS1903.

6. The name of the contractor(s), if any, for such improvement was: R.I.C. Construction Co., Inc.

7. The date of the Contract Award was October 28, 2024.

8. The property on which said work of improvement was completed in the City of Seal Beach, County of Orange, State of California, and is described as follows: 200 Seal Beach Boulevard, Seal Beach, CA 90740
Date: _______________
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Signature of owner or corporate officer of owner
named in paragraph 2 or agent.

VERIFICATION
I, the undersigned, say: Iris Lee (Director of Public Works) declarant of the foregoing notice of completion; have read said notice of completion and know the contents thereof; the same is true of my own knowledge.

I declare under penalty of perjury the foregoing is true and correct.

Executed on _____________________, 2026, at Seal Beach, California. (Date of Signature)
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Agenda Item K

AGENDA STAFF REPORT
DATE: September 14, 2026
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Amending the FY 2026-27 West Orange County Water Board Budget
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7815 amending the FY 2026-27 West Orange County Water Board budget by $4,600,000, returning unexpended funds from the Cathodic Protection Program to member agencies, of which the City’s proportionate agency reimbursement is $657,800.

BACKGROUND AND ANALYSIS:

The West Orange County Water Board (WOCWB) is a joint powers authority comprised of the Cities of Garden Grove, Huntington Beach, Westminster, and Seal Beach. WOCWB owns and operates OC-9 and OC-35 pipelines for the purpose of importing water from the Municipal Water District of Orange County (MWDOC) and transporting it to the member cities.

In 2020, WOCWB established a Cathodic Protection Program (Program) to extend the useful life of the more than 60-year-old OC-9 and OC-35 pipelines. The original Program was estimated at approximately $8 million, and member agencies began making annual contributions based on their respective ownership percentages.

As preliminary design progressed, WOCWB's engineering consultant determined that the originally proposed rehabilitation approach was not feasible for portions of the pipelines. WOCWB subsequently authorized a more comprehensive condition assessment to identify appropriate repairs and long-term maintenance needs.

The assessment did not identify an immediate risk of failure but recommended approximately $620,000 in priority repairs, continued monitoring, and follow-up condition assessments every five years. WOCWB has budgeted $1 million in FY 2026-27 to complete the recommended repairs and address related maintenance needs.

Since the originally anticipated rehabilitation program is no longer being pursued, WOCWB determined that the full amount previously collected from the member agencies is no longer necessary. WOCWB is recommending the return of $4.6 million to the member agencies based on their ownership percentages, while retaining sufficient reserves for the planned repairs, emergency needs, and future condition assessments.

Seal Beach's 14.3% ownership share results in an anticipated return of approximately $657,800 to the City's Water Enterprise Fund.

At its July 15, 2026 meeting, the WOCWB Board voted unanimously to support the return of funds. Each member agency's City Council must approve the associated budget amendment before WOCWB considers final ratification at its October 21, 2026 meeting. Funds are anticipated to be returned following completion of that process and the maturity of WOCWB's investment in November 2026.

ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of the FY 2026-27 WOCWB budget amendment will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has approved the resolution as to form.

FINANCIAL IMPACT:

Upon approval by the member agencies and the WOCWB, the City’s proportionate return of $657,800 will be deposited to the City’s Water Enterprise unassigned fund balance.

Agency Percent Owner Total Return
Huntington Beach 56.1% $2,580,600
Westminster 25.4% $1,168,400
Seal Beach 14.3% $ 657,800
Garden Grove 4.2% $ 193,200
Total 100% $4,600,000
RECOMMENDATION:

That the City Council adopt Resolution 7815 amending the FY 2026-27 West Orange County Water Board budget by $4,600,000, returning unexpended funds from the Cathodic Protection Program to member agencies, of which the City’s proportionate agency reimbursement is $657,800.

SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, City Manager ATTACHMENTS:

A. Resolution 7815
RESOLUTION 7815

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

APPROVING THE AMENDMENT OF THE WEST ORANGE
COUNTY WATER BOARD FISCAL YEAR 2026-27 BUDGET
WHEREAS, the City is a member of the West Orange County Water Board (WOCWB) joint powers authority; and,
WHEREAS, the City jointly owns the WOCWB water pipeline conveyance system with the Cities of Garden Grove, Huntington Beach, and Westminster; and, WHEREAS, the WOCWB has found that the previously approved Cathodic Protection Program is no longer viable and desires to return $4,600,000 of unexpended funds to member agencies; and,
WHEREAS, the City’s proportionate return is $657,800.

NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:

Section 1. The City Council hereby approves amending the FY 2026-27 West Orange County Water Board budget by $4,600,000, returning unexpended funds from the Cathodic Protection Program to member agencies, of which the City’s proportionate agency reimbursement is $657,800.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of September 2026 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7815 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 14th day of September 2026.

Gloria D. Harper, City Clerk
Agenda Item L

AGENDA STAFF REPORT
DATE: September 14, 2026
TO: Honorable Mayor and City Council
THRU: Patrick Gallagos, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Notice of Completion for the Seal Beach Tennis and Pickleball Center Court Resurfacing and LED Lighting
Upgrades, CIP PR2501
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7816:

1. Accepting the completion of the Seal Beach Tennis and Pickleball Center Court Resurfacing and LED Lighting Upgrades, CIP PR2501 (Project), by KYA Services, LLC (KYA) in the amount of $419,914.81; and,

2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.

BACKGROUND AND ANALYSIS:

The Seal Beach Tennis and Pickleball Center (SBTPC) is one of the City’s most frequently utilized recreational facilities. The SBTPC includes eleven (11) tennis courts and twenty-one (21) pickleball courts and serves a membership base of more than 500 users. The facility also accommodates a variety of private and Citysponsored events.

The City has historically resurfaced courts on an as-needed basis. However, increased use in recent years has resulted in accelerated wear beyond the typical maintenance schedule.

Funding for the proposed improvements was included in the Fiscal Year 2025– 2026 Capital Improvements Program (CIP) for the renovation of nine (9) tennis courts and thirteen (13) pickleball courts and LED upgrades of six (6) existing tennis court lighting. The balance of the courts and lighting were upgraded as part of another recently completed CIP project.

The contractor retrofitted thirty-six (36) LED lights, which included removing thirtysix (36) existing fixtures and furnishing thirty-six (36) 400W LEDs. The contractor also completed comprehensive court resurfacing that included grinding and patching as needed, pressure-washing the courts, repairing spalls and surface imperfections, and treating all major cracks with Court Patch Binder. They applied a full five-coat system that incorporated manufactured grit aggregate in the resurfacer and color coats to ensure proper texture and durability.

These treatments improved the playing surface. However, addressing underlying structural deficiencies was not part of the project’s scope of work. Because the courts were built on an older asphalt surface, a full court overhaul would be required to correct those underlying structural deficiencies. Existing cracks may reappear over time, but this condition is expected given the age of the base pavement. Throughout the project, the contractor was responsive to cracks that emerged and replaced material to ensure a consistent and stable surface, including redoing sections as requested by the City.

All lighting products warrants that they will be free from defects in housing, for the period of ten (10) years from date of purchaser’s purchase (the invoice date), subject to terms and conditions provided in the specifications. All work and/or materials for the court resurfacing performed by the contractor is guaranteed for a period of one (1) year from the time resurfacing is completed. In the construction or resurfacing of concrete courts, shrinkage cracks and/or spalls may appear in the slab, but do not cause any structural damage or displacement.

The Project was inspected, meets all standards and requirements within the Project specifications, and has been completed to the satisfaction of the City Engineer. It is requested that the City Council formally accept the Project, direct staff to file a Notice of Completion with the Orange County Clerk-Recorder’s Office and release the retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.

ENVIRONMENTAL IMPACT:

This Project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15301 Class 1 Subsection (c) of the CEQA Guidelines.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved the resolution as to form.

FINANCIAL IMPACT:

The approved construction contract budget plus established construction contingency totals $470,000.00. The actual amount used was $419,914.81.

The table below presents a breakdown of the total construction Project cost:

Description Amount
Construction Bid Items
Contract Change Orders
$ 419,914.81
$ 0.00
Project Cost $ 419,914.81
Unspent funds will be returned to the original funding source.

RECOMMENDATION:

That the City Council adopt Resolution 7816:

1. Accepting the completion of the Seal Beach Tennis and Pickleball Center Court Resurfacing and LED Lighting Upgrades, CIP PR2501 (Project), by KYA Services, LLC (KYA) in the amount of $419,914.81; and,

2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.

SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, City Manager Prepared by: Wendy Ha, Assistant Engineer
ATTACHMENTS:

A. Resolution 7816
B. Notice of Completion
RESOLUTION 7816

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

ACCEPTING COMPLETION OF THE SEAL BEACH TENNIS AND

PICKLEBALL CENTER COURT RESURFACING AND LED
LIGHTING UPGRADES, CIP PR2501
NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:

Section 1. The City accepts the completion of the Seal Beach Tennis and Pickleball Center Court Resurfacing and LED Lighting Upgrades, CIP PR2501 (Project), by KYA Services, LLC (KYA) in the amount of $419,914.81 for the work performed.

Section 2. The City Clerk is hereby directed to file a “Notice of Completion” for the Project with the Orange County Clerk-Recorder within fifteen (15) days of the date of this resolution and to release retention thirty-five (35) days after the recordation of the Notice of Completion contingent upon no claims being filed on the Project.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of September 2026 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7816 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of September 2026.

Gloria D. Harper, City Clerk

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO

CITY OF SEAL BEACH
Attn: City Clerk
211 - 8th Street
Seal Beach, CA 90740
Space of above this line for Recorder’s use.
*** No Recording Fee Pursuant to Government Code Sections 6103 and 27383 ****

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion.

Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is: City of Seal Beach.

3. The address of the owner is: 211 – 8th Street, Seal Beach, CA 90740.

4. The nature of the interest or estate of the owner is: In Fee. The City of Seal Beach.

5. A work of improvement on the property hereinafter is described as substantially completed on September 14, 2026. The work was Seal Beach Tennis Court and Pickleball Center Court Resurfacing and LED Lighting Upgrades, CIP PR2501.

6. The name of the contractor(s), if any, for such improvement was: KYA Services, LLC (KYA).

7. The date of the Contract Award was January 26, 2026.

8. The property on which said work of improvement was completed in the City of Seal Beach, County of Orange, State of California, and is described as follows: 3900 Lampson Ave, Seal Beach, CA 90740
Date: _______________
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Signature of owner or corporate officer of owner
named in paragraph 2 or agent.

VERIFICATION
I, the undersigned, say: Iris Lee (Director of Public Works) declarant of the foregoing notice of completion; have read said notice of completion and know the contents thereof; the same is true of my own knowledge.

I declare under penalty of perjury the foregoing is true and correct.

Executed on _____________________, 2026, at Seal Beach, California. (Date of Signature)
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Agenda Item M

AGENDA STAFF REPORT
DATE: September 14, 2026
TO: Honorable Mayor and City Council
FROM: Patrick Gallegos, City Manager
SUBJECT:

Approve Memoranda of Understanding between the City of
Seal Beach and the Seal Beach Supervisors and
Professionals Association, Mid-Management and
Confidential Employees Association, and Marine Safety
Management Association for the period of July 1, 2026
through June 30, 2029
SUMMARY OF REQUEST:

That the City Council:

1. Adopt Resolution 7817 approving the Memoranda of Understanding between the City of Seal Beach and the Seal Beach Supervisors and Professionals Association (SBSPA), the Mid-Management and Confidential Employees Association (MMCEA), and the Seal Beach Marine Safety Management Association (SBMSMA) for the period of July 1, 2026 through June 30, 2029; and,

2. Approve Budget Amendment BA # 27-03-01 in the amount of $23,591 for FY 2026-27; and,

3. Authorize the City Manager to execute and implement the Memoranda of Understanding in the form attached hereto.

BACKGROUND AND ANALYSIS:

The City of Seal Beach (City) met and conferred in good faith with the Seal Beach Supervisors and Professionals Association (SBSPA), Mid-Management and Confidential Employees Association (MMCEA), and Seal Beach Marine Safety Management Association (SBMSMA) regarding successor Memoranda of Understanding (MOUs). Through the collective bargaining process, the parties reached tentative agreements concerning wages, hours, and other terms and conditions of employment. Each Association has accepted the terms and form of its respective MOU.

The proposed MOUs cover the period of July 1, 2026, through June 30, 2029. A single resolution is presented for City Council consideration to approve all three

MOUs and authorize the City Manager to execute and implement the agreements on behalf of the City.

Major Changes
• Term and compensation: Each MOU provides for a three-year term, with salary adjustments of 3.0% effective the first full pay period starting on or after July 1, 2026; 2.5% effective the first full pay period starting on or after July 1, 2027; and an adjustment based on the Consumer Price Index for All Urban Consumers (CPI-U), with a minimum of 1.0% and a maximum of

3.0%, effective the first full pay period starting on or after July 1, 2028. • 4/10 work-schedule pilot: The SBSPA and MMCEA agreements establish a pilot six-month 4/10 work-schedule pilot designed to improve public access to City services. City Hall’s operating hours will be extended Monday through Thursday from 7:30 a.m. to 5:30 p.m., including the lunch hour, providing additional availability during the City’s busiest service times.

Closing City Hall on Fridays will also help free up parking for residents, visitors, and local businesses during high-demand Fridays. The City Council may discontinue the pilot at any time, and continuation beyond the sixmonth pilot period will require further Council action.

The remaining negotiated terms and mutually agreed-upon language are reflected in the attached redlined versions of the respective MOUs. Upon City Council approval, the final MOUs will govern the wages, benefits, hours, and other terms and conditions of employment for each bargaining unit.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

The City Attorney has reviewed this staff report and approved it as to form.

FINANCIAL IMPACT:

The benefit changes for SBSPA and MMCEA agreements were included in the FY 2026-27 Adopted Budget and any additional costs will be absorbed within existing departmental budgets. The SBMSMA agreement results in an additional FY 2026- 27 cost of $23,591 and requires Budget Amendment BA # 27-03-01. Ongoing costs will be incorporated into future budgets through the annual budget process.

Description Account Revised/Adopted
Budget
Proposed
Budget
Budget (diff)
Amendment
Salaries 106-230-0828-50020 $ 585,251.00 $ 598,842.00 $ 13,591.00 Personnel Matters 101-130-0015-51961 $ 370,000.00 $ 380,000.00 $ 10,000.00 Transfer Out - Operational 101-150-0080-59200 $ 2,091,614.00 $2,105,205.00 $ 13,591.00 Transfer In - Operational 106-000-0000-49200 $ 1,952,683.00 $1,966,274.00 $ 13,591.00

RECOMMENDATION:

That the City Council:

1. Adopt Resolution 7817 approving the Memoranda of Understanding between the City of Seal Beach and the Seal Beach Supervisors and Professionals Association (SBSPA), the Mid-Management and Confidential Employees Association (MMCEA), and the Seal Beach Marine Safety Management Association (SBMSMA) for the period of July 1, 2026 through June 30, 2029; and,

2. Approve Budget Amendment BA # 27-03-01 in the amount of $23,591 for FY 2026-27; and,

3. Authorize the City Manager to execute and implement the Memoranda of Understanding in the form attached hereto.

SUBMITTED, NOTED AND APPROVED BY:

Patrick Gallegos
Patrick Gallegos, City Manager
ATTACHMENTS:

A. Resolution 7817
B. SBSPA Memorandum of Understanding (clean)
C. SBSPA Memorandum of Understanding (redline)
D. MMCEA Memorandum of Understanding (clean)
E. MMCEA Memorandum of Understanding (redline)
F. SBMSMA Memorandum of Understanding (clean)
G. SBMSMA Memorandum of Understanding (redline)
RESOLUTION 7817

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

APPROVING MEMORANDA OF UNDERSTANDING BETWEEN

THE CITY OF SEAL BEACH AND THE SEAL BEACH

SUPERVISORS AND PROFESSIONALS ASSOCIATION, THE

MID-MANAGEMENT AND CONFIDENTIAL EMPLOYEES

ASSOCIATION, AND THE SEAL BEACH MARINE SAFETY
MANAGEMENT ASSOCIATION FOR THE PERIOD OF JULY 1,
2026 THROUGH JUNE 30, 2029; APPROVING BUDGET
AMENDMENT NO. 27-03-01; AND AUTHORIZING

IMPLEMENTATION
WHEREAS, the City of Seal Beach values the work of its employees and seeks to maintain fair and mutually beneficial terms and conditions of employment for the good of the City and its employees; and,
WHEREAS, representatives of the City, the Seal Beach Supervisors and Professionals Association ("SBSPA"), the Mid-Management and Confidential Employees Association ("MMCEA"), and the Seal Beach Marine Safety Management Association ("SBMSMA") met, conferred, and negotiated in good faith regarding wages, hours, and other terms and conditions of employment and developed the Memoranda of Understanding ("MOUs") attached hereto as Exhibits A, B, and C, each incorporated herein by this reference, and each Association has accepted its respective MOU; and,
NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:

Section 1. The MOU between the City of Seal Beach and SBSPA, attached hereto as Exhibit A, for the period of July 1, 2026 through June 30, 2029, is hereby approved, retroactive to the first full pay period starting on or after July 1, 2026.

Section 2. The MOU between the City of Seal Beach and MMCEA, attached hereto as Exhibit B, for the period of July 1, 2026 through June 30, 2029, is hereby approved, retroactive to the first full pay period starting on or after July 1, 2026.

Section 3. The MOU between the City of Seal Beach and SBMSMA, attached hereto as Exhibit C, for the period of July 1, 2026 through June 30, 2029, is hereby approved, retroactive to the first full pay period starting on or after July 1, 2026.

Section 4. Budget Amendment No. 27-03-01 for Fiscal Year 2026-27 in the amount of $23,591 is hereby approved to fund costs associated with the SBMSMA MOU.

Section 5. The City Manager is authorized to execute Exhibits A through C on behalf of the City and to take all actions necessary to implement the MOUs and Budget Amendment No. 27-03-01.

Section 6. The City Clerk shall certify the passage and adoption of this resolution.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of September 2026 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7817 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of September 2026.

Gloria D. Harper, City Clerk
SBSPA MOU 2026-2029
1 Seal Beach Supervisors & Professionals
Association (SBSPA)

MEMORANDUM OF UNDERSTANDING
Resolution 7817
ADOPTED: September 14, 2026
EXPIRES: June 30, 2029
Term: July 1, 2026 - June 30, 2029
SBSPA MOU 2026-2029
2 TABLE OF CONTENTS
SECTION 1: RECOGNITION
SECTION 2: CITY RIGHTS
SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE SECTION 4: RETIREMENT HEALTH INSURANCE
SECTION 5: SICK LEAVE
SECTION 6: BEREAVEMENT LEAVE
SECTION 7: VACATION TIME
SECTION 8: HOLIDAYS
SECTION 9: RETIREMENT
SECTION 10: OVERTIME AND CALL OUT PAY
SECTION 11: COMPENSATORY TIME OFF (CTO)
SECTION 12: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
SECTION 13: LONGEVITY BONUS
SECTION 14: AUTOMOBILES AND MILEAGE
SECTION 14-A: UNIFORMS & EQUIPMENT/UNIFORM ALLOWANCE
SECTION 15: ADMINISTRATIVE LEAVE
SECTION 16: JURY DUTY
SECTION 17: LIMITATIONS
SECTION 18: DEFERRED COMPENSATION
SECTION 19: BILINGUAL COMPENSATION
SECTION 20: HEALTH WELLNESS PROGRAM
SECTION 21: WORK SCHEDULE
SECTION 22: TUITION REIMBURSEMENT
SECTION 23: COMPENSATION PLAN
SECTION 24: LEAVES OF ABSENCE
SECTION 25: MISCELLANEOUS
SECTION 26: APPEALS
SECTION 27: “ME-TOO” CLAUSE
SECTION 28: NEW EMPLOYEE ORIENTATION/EMPLOYEE INFORMATION SECTION 29: MAINTENANCE OF MEMBERSHIP
SECTION 30: TERM
SECTION 31: RATIFICATION
SBSPA MOU 2026-2029
2 SBSPA MOU 2026-2029
3 MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF SEAL BEACH
AND

SEAL BEACH SUPERVISORS & PROFESSIONALS ASSOCIATION
SECTION 1: RECOGNITION
A. Pursuant to the provisions of Employee-Employer Relations Resolution 5242, as amended, the City of Seal Beach (hereinafter called the “City” and/or “Employer” and/or “Management” interchangeably) has recognized for the purpose of this Memorandum of Understanding (MOU), the Seal Beach Chapter of the Supervisors and Professionals Association (SBSPA), an association of employees of the City of Seal Beach, hereinafter referred to as “Association”.

B. The City recognizes the Association as the representative of the employees in the classification and assignments set forth in Section 23.G below for the purpose of meeting its obligations under this MOU, the Meyers-Milias-Brown Act, Government Code Section 3500 et seq., when City rules, regulations, or laws affecting wages, hours and/or other terms and conditions of employment are amended or changed.

C. The City agrees that the recognized representatives of Association not to exceed 4 in number shall be entitled to meet and confer with City during said recognized representatives’ normal working hours without suffering any loss in pay while absent from the duties for such purpose. City also agrees that such representatives may utilize a total of not more than 3 hours per year without suffering any loss in pay for such absence for the purpose of meeting with employees who are members of Association and/or other officers of Association.

D. City recognizes Association’s right to appoint or elect representatives to meet and confer with City’s management representatives on salaries, wages, and terms and conditions of employment. Association agrees to notify City in writing as to the identity of the representatives and of subsequent appointments, if any. Association and City agree that employees appointed or elected as Association representatives shall be required to work full time.

E. It is recognized and agreed that no Association business and/or meetings will be conducted and/or attended by employees of City during their respective hours of duty and work unless specified herein.

F. Representatives and/or officers of Association shall not interrupt the work of any employee of City at any time to conduct business or other matters connected with Association without prior consent of Management.

G. This document supersedes all prior Memoranda of Understanding and verbal agreements between the parties hereto.

SECTION 2: CITY RIGHTS
A. Rights/Responsibilities
This City reserves, retains and is vested with solely and exclusively, all rights of management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include but not be limited to, the following rights:

1. To manage the City generally and to determine the issues of policy.

2. To determine the existence or nonexistence of facts which are the basis of the management decision(s).

3. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services.

SBSPA MOU 2026-2029
4 4. To determine the nature, manner, means and technology and extent of services to be provided to the public.

5. To determine methods of financing.

6. To determine types of equipment or technology to be used.

7. To determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted.

8. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City.

9. To assign work to and schedule employees in accordance with any requirements set forth in this MOU, and to establish and change work schedules and assignments upon reasonable notice insofar as such changes do not conflict with this MOU.

10. To layoff employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive.

11. To establish and modify productivity and performance programs and standards.

12. To discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause.

13. To determine minimum qualifications, skills, abilities, knowledge, selection procedures and standards, job classifications and to reclassify employees in accordance with this MOU and applicable resolutions and codes of the City.

14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the MOU and applicable resolutions and codes of the City.

15. To determine policies, procedures and standards for selection, training and promotion of employees in accordance with this MOU and applicable resolutions and codes of the City.

16. To establish reasonable employee performance standards including but not limited to, quality and quantity standards and to require compliance therewith.

17. To maintain order and efficiency in its facilities and operation.

18. To establish and promulgate and/or modify rules and regulations to maintain order and safety and which are not in contravention with the Agreement.

19. To restrict the activity of an employee organization on municipal property and on municipal time except as set forth in this MOU.

20. To take any and all necessary action to carry out the mission of the City in emergencies.

B. Where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of City Rights shall impact the wages, hours and other terms and conditions of employment of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU.

SBSPA MOU 2026-2029
5 SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A. Health Insurance Coverage

1. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution.

2. The City shall contribute an equal amount towards the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees.

3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the Association during negotiations. For employees participating in the City’s cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the cafeteria plan

4. A portion of the monthly flex dollar allowance is identified as the City’s contribution towards PEMHCA. The monthly flex dollar allowance may only be used in accordance with the terms of the City’s cafeteria plan.

5. Every January 1st during the term of this agreement, the City shall increase the contribution amounts by the average percentage of increase for basic plans published by CalPERS which sets health insurance premiums for the coverage year.

6. Employees meeting the waiver criteria and electing to waive enrollment in the City’s cafeteria plan are eligible to receive $550 per month beginning July, 2026 (upon showing proof of medical insurance coverage under an alternative plan). Election forms are available in Human Resources.

7. Full-time employees covered by this MOU who have completed 30 days of uninterrupted service shall be enrolled in the cafeteria plan on the first day of the next succeeding month.

8. Employees who change classification from full-time to part-time provisional, hourly or seasonal shall not be eligible for participation in the cafeteria plan.

9. City shall not contribute to the cafeteria plan for any employee during any month the employee is on leave of absence without pay or who is absent from regular duties without authorization, for a full calendar month. City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers’ Compensation Insurance.

B. Life Insurance
Employees covered by this agreement shall receive a $50,000 term life insurance policy paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month.

C. Income Continuation
Employees covered by this Agreement shall receive a policy to provide for income continuation of 66.67% of the employee’s monthly salary, up to a maximum of $5,000 per month, whichever is lesser. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. Said income continuation shall commence on the 31st day of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while the employee is absent from work for a period of up to age 65.

SECTION 4: RETIREMENT HEALTH INSURANCE
A. Employees covered by this Agreement shall have the option upon retirement, to continue participation in the City’s health insurance program at the employee’s expense.

SBSPA MOU 2026-2029
6 B. Employees covered by this Agreement who were hired before April 13, 2009 by the City, have 20 or more combined years of employment with the City, have reached 55 years of age, and retire after December 31, 2010, shall be provided with individual medical insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided capped at the Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents medical insurance is identified as the City’s contribution towards PEMHCA.

C. On or after January 1st, 2008, the City shall contribute to the cost of medical coverage for each eligible retiree and dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution.

D. In all cases, the City’s contribution for eligible dependent coverage for retirees shall terminate with the death of the retiree.

E. In the event an eligible retired employee resides in an area where the health plans provided by the City are not in effect, that retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution at time of retirement.

SECTION 5: SICK LEAVE
A. All full-time employees covered by this MOU shall accrue sick leave at the rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up to and including 520 hours. Except as otherwise provided in this MOU, no employee shall receive further accruals once the 520 hour maximum is reached.

B. The Department Head may require employees to present proof of illness for sick leaves in excess of 3 working days.

C. Except as otherwise provided, employees shall not be eligible for any payment for sick leave balances upon termination.

D. Employees who are on authorized leaves of absence, without pay, shall not accrue sick leave hours during said leaves of absence.

E. Sick leave balances may not be used to defer a disability retirement.

SECTION 6: BEREAVEMENT LEAVE
The City agrees to provide 40 hours bereavement leave with pay for death in the immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. “Immediate family” is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, foster child, child of domestic partner, a legal ward, mother-in-law, father-in-law, registered domestic partner-in-law or dependent relative living with the employee. If 5 days of the employee’s regular work schedule exceeds 40 hours, the employee may take off work the number of hours in excess of 40 necessary to equal 5 days, without pay, but may use accrued leave time for those hours above 40.

SECTION 7: VACATION TIME
A. All full-time employees covered by this Agreement, who have passed the employee probationary period (as defined in the Personnel Rules and Regulations, Section 6.01) shall be granted a vacation with pay of approximately 80 hours per year up to a maximum of approximately 160 hours per year.

B. Full-time employees covered by this Agreement, who shall have at least five years of continuous service, shall be entitled to 8 additional hours of vacation per year of full-time continuous service for each year of service in excess of 5 years up to a maximum of approximately 160 hours per year.

SBSPA MOU 2026-2029
7 C. The vacation accrual schedule is as follows:

Years Service Vacation Hours
Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours 1 80 3.0769 80
2 80 3.0769 80
3 80 3.0769 80
4 80 3.0769 80
5 80 3.0769 80
6 88 3.3846 88
7 96 3.6923 96
8 104 4.0000 104
9 112 4.3076 112
10 120 4.6153 120
11 128 4.9230 128
12 136 5.2307 136
13 144 5.5384 144
14 152 5.8461 152
15 160 6.1538 160
D. Employees covered by this agreement considered as hourly, part-time and/or seasonal employees shall not be eligible for paid vacations.

E. Employees covered by this agreement who are on leaves of absence, without pay, shall not accrue vacation leave hours during said leaves of absence.

F. Employees covered by this agreement shall only be allowed to accrue a maximum of 240 hours of vacation. Once this maximum is reached, all further accruals will cease. Vacation accruals will recommence after the employee has taken vacation and the employee’s accrued hours drop below the maximum. The maximum can only be exceeded with the approval of the City Manager in writing.

G. Employees are encouraged to use at least the amount of vacation hours earned each fiscal year. Those employees who have been credited with preexisting leave hours are expected to use a portion of the excess as leave time, in addition to the new vacation hours, each year until the maximum accrual is met. The City recognizes that a number of long-term employees have accrued substantially more leave time than shorter-term employees, and that it will likely take them significantly longer to achieve this goal. It is the intent of this section to balance the personal interests of the employee with the financial concerns of the City; as such, significant progress toward reaching the maximum accrual amounts may be deemed a success.

H. Vacation leave time shall not be approved until such time as it has been earned, unless prior, special arrangements have been made with the City Manager. Vacation leave shall be requested by the employee prior to the start of the vacation leave period. Such vacation leave to be taken shall be subject to the prior approval of the Department Head, or designee, subsequent to consideration of the departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies.

SBSPA MOU 2026-2029
8 I. An employee who has completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired before July 1, 2026 may receive compensation for up to 200 hours per fiscal year, in no more than two payments; and (2) employees hired on or after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

SECTION 8: HOLIDAYS
A. The City agrees to grant all full-time employees a full shift pay for each holiday recognized by City. Every full-time employee of the City shall be granted the following holidays with pay:

Holiday Date
New Year’s Day January 1st
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4th
Labor Day First Monday in September
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Calendar day following Thanksgiving Day Christmas Eve December 24th
Christmas Day December 25th
2 Floating Holidays Discretion of employee
Total of 13 holidays annually
*Floating Holidays must be taken during each fiscal year (July 1st through June 30th). Floating holidays must be approved in advance by the Department Head.

B. When a holiday falls on a Sunday, the next day (Monday) shall be observed as a holiday. When a holiday falls on a Saturday, the preceding day (Friday) shall be observed as a holiday.

C. When a holiday falls on a full-time employee’s regularly scheduled day off, the employee shall receive compensatory time off for a full shift in lieu of holiday pay, in keeping with other provisions of this MOU.

Example: Employee normally works a 4/10 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, Thursday, or Friday, Employee C would receive 10 hours of compensatory time off.

D. An employee who is required to work on a holiday shall receive pay computed at 1½ times the employees’ basic hourly rate for the number of hours actually worked.

Example: Employee A works 6 hours on Christmas Day. Employee A would earn pay computed as follows:

Hours Pay Rate
Full-shift holiday pay base hourly rate
6 hours work pay regular hourly rate or overtime hourly rate, as applicable under MOU SBSPA MOU 2026-2029
9 SECTION 9: RETIREMENT
A. The retirement program provided by the City shall consist of a pooled Public Employees’ Retirement System (PERS) plan, which includes the following Government Code provisions:

Section 20042 One Year Final Compensation
Section 20965 Credit of Unused Sick Leave
Section 21024 Military Service Credit
B. Miscellaneous

1. The Miscellaneous employees shall pay the full 7% of their CalPERS required contribution of their compensation earnable.

2. The City shall provide PERS Section 21354 - 2% @ 55 for miscellaneous members.

3. New employees/members hired on or after January 1, 2013 as defined by the Public Employees’ Pension Reform Act (PEPRA) will be hired at the retirement formula in accordance with the PEPRA and other legislation.

SECTION 10: OVERTIME AND CALL OUT PAY
A. If work beyond normal workday, workweek or work period is required, the employee who may be asked to perform such overtime shall be notified of the apparent need for such overtime as soon as practicable prior to when the overtime is expected to begin.

B. Call out and overtime pay shall be paid at the rate of time and one-half the hourly rate. Minimum “call out” time (when returning to work) shall be 3 hours. Call out time shall start when employee is called to service.

C. Overtime will be computed by dividing the employee’s regular monthly salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to be submitted and computed with the regular payroll.

D. Notwithstanding any provision of this Section, the employee shall be entitled to select either compensated overtime or compensatory time off subject to budget limitations, departmental rules and regulations, and Section 11 of this MOU.

SECTION 11: COMPENSATORY TIME OFF (CTO)
The maximum (cap) of CTO is 120 hours. Compensatory Time earned in excess of 120 hours will be paid as overtime during the pay period accrued.

SECTION 12: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee, when so appointed, must perform the duties and assume the responsibilities of the higher classification for 80 consecutive working hours and shall be paid according to the step in the assigned salary range of the new position which is a minimum of 5% higher than the salary received before the provisional appointment (not to exceed the top step).

B. When necessary and in the best interest of the City, the City Manager may provisionally assign an employee to a higher level of duty and responsibility than provided for in the employee’s assigned classification which is not otherwise a part of an adopted classification. In the case of such an assignment, the employee must perform the higher level of duties for 80 consecutive working hours; thereafter the employee shall receive additional compensation of 5% so long as the assignment is authorized by the City Manager.

SBSPA MOU 2026-2029
10 SECTION 13: LONGEVITY BONUS
Employees who have achieved 10 years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the 10th anniversary of their employment.

SECTION 14: AUTOMOBILES AND MILEAGE
Employees covered by this MOU, utilizing their privately-owned automobiles for City business on a non-regular basis, shall be entitled to reimbursement for costs incurred at the mileage rate established by the Internal Revenue Service (IRS).

SECTION 14-A: UNIFORMS & EQUIPMENT/UNIFORM ALLOWANCE
A. Public Works Department Employees
Employees in designated classifications working in the Public Works Department shall be entitled to uniform service.

The Department Head will designate the uniform and the City will select the vendor. The designated uniform and vendor may be changed from time-to-time, as solely determined by the Department Head or City. The City shall pay the total cost of renting and laundering the uniforms for eligible employees. The designated classifications for uniform service are: Fleet Maintenance Program Manager, Water Services Supervisor, Maintenance Services Supervisor, and Senior Utilities Supervisor. The City Manager, in his or her discretion, may add additional classifications or positions/assignments within classifications on recommendation of the Department Head.

B. Safety Shoes
The City will provide employees in the classifications of Fleet Maintenance Program Manager, Water Services Supervisor, Maintenance Services Supervisor, and Senior Utilities Supervisor with safety shoes, subject to a maximum of $250 per calendar year. The Department Head will establish and may revise procedures for the purchase of safety shoes and may add additional classifications with concurrence of the City Manager. The program may provide for payment directly to a vendor or vendors selected by the City, may provide for reimbursement of the actual and necessary expense incurred by the eligible employee, or both and will be subject to change within these parameters, as solely determined by the City, from time to time. The Department Head may designate or change the designation of styles, models or specifications for shoes that will be eligible for this benefit. Regardless of other requirements, shoes must meet all applicable safety rules and regulations to be eligible. Employees may use any remaining funds from their annual safety shoe allowance to purchase shoe-related items, including shoe inserts, socks, and shoelaces. In addition, employees may purchase one (1) additional pair of safety shoes and/or shoerelated items, up to an additional $250 per calendar year, with prior written approval from the Department Director.

C. Police Department Uniform Allowance
Employees who work in the Police Department and are assigned to wear a uniform shall receive a $1,250 annual uniform allowance. New employees in the Police Department shall receive initial uniforms as determined by the Chief of Police.

SECTION 15: ADMINISTRATIVE LEAVE
A. Employees shall be entitled to hours equivalent to two work days of administrative leave during each fiscal year.

B. Administrative leave hours may not be carried forward to succeeding years nor may they be turned in for cash value.

SBSPA MOU 2026-2029
11 SECTION 16: JURY DUTY
See Personnel Rules and Regulations (Resolution 5446) Section 10.06 (C) for rules on jury duty.

SECTION 17: LIMITATIONS
A. No employee who is receiving Workers’ Compensation payments and benefits is eligible to receive overlapping benefits (except life insurance) stated in this MOU.

B. City shall not make any monthly payments for premiums for any insurance benefit listed in this MOU, or uniform allowance, supplemental pay of any type and/or type of bonus on behalf of or to any employee who has been absent without authorization during entire said month or for any employee who has terminated for any reasons whatsoever or who is on leave of absence without pay or who is suspended from duties without pay for the entire said month.

SECTION 18: DEFERRED COMPENSATION
Effective the first full pay period on or after July 1, 2026, the City shall contribute $50 per payroll period into a deferred compensation program for each employee in the Supervisors and Professionals and Technical position classifications.

SECTION 19: BILINGUAL COMPENSATION
A. Upon the recommendation of a department director, the City Manager may award a bilingual compensation bonus of $52.50 per payroll period to those employees in positions determined to require bilingual skills.

B. The City Manager shall require the taking of competency tests to certify the employee as eligible for bilingual compensation based on the employee’s proficiency in speaking the language determined to be required. Such certification shall be a condition precedent to qualifying for bilingual pay.

SECTION 20: HEALTH WELLNESS PROGRAM
A. Medical Maintenance & Wellness Program
The City shall reimburse Employee, as a medical benefit, for Employee’s actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $400 per fiscal year. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager.

SECTION 21: WORK SCHEDULE
A. The City shall implement a 4/10 work schedule as a pilot program beginning on a date designated by the City.

During the pilot program, City Hall shall be open to the public Monday through Thursday from 7:30 a.m. to 5:30 p.m. and shall be closed to the public on Fridays.

B. The City Council may discontinue the pilot program at any time. Unless discontinued earlier, the pilot program shall automatically expire at the end of the day immediately preceding the six-month anniversary of the implementation date. Any continuation or renewal of the 4/10 work schedule beyond the pilot period shall require City Council action.

C. Department Heads shall retain discretion to assign employee schedules and staffing levels as necessary to maintain operational needs and ensure adequate service to the public.

SBSPA MOU 2026-2029
12 B. Holiday Closures - The City Manager may designate up to 5 specific holiday closure workdays in each calendar year between Christmas Day and New Year’s Day during which employees may be required to take time off, charged to leave without pay, the employee’s accumulated compensatory time, vacation, floating holidays, or a combination thereof, as determined by the affected employee. The days must be consecutive for the employee but may differ between employees. Employees who do not have sufficient accumulated time off in their account to cover the required time off may request, and will be granted, sufficient advance on their vacation accrual to cover the uncovered balance. This advance will be recovered with the next vacation accruals earned by the employee. Time off of work under this provision shall not be deemed a layoff.

C. If an employee is required to work on a City Manager designated closure work day, the employee will receive pay computed at 1½ times the employees’ basic hourly rate for the number of hours actually worked.

Example: Employee A normally works a 9/80 schedule, and is required to work 4 hours on a City Manager designated holiday closure work day on December 28, 2016. Employee A would earn pay computed as follows:

Hours Pay Rate
4 hours work pay 1½ times the hourly rate, as applicable under the MOU 5 hours leave time Compensatory time, vacation, floating holiday, or combination thereof D. Police Department employees are excluded from the holiday-closure provisions in subsections B and C.

SECTION 22: TUITION REIMBURSEMENT
B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

A. Higher Education Degree Programs - Employees attending accredited community colleges, universities or trade schools for the purpose of obtaining an eligible higher education degree may apply for reimbursement of tuition, books, student fees, and parking. Tuition reimbursement is capped at the 2026 California State University (CSU) tuition rates, not to exceed $3,908 per semester and $7,816 per fiscal year.

B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

C. Minimum Service Requirement - An employee must have completed at least one (1) year of continuous employment with the City before becoming eligible to receive tuition assistance. Eligibility shall be determined as of the date the employee’s course begins.

D. Eligible Degree Programs - Tuition assistance may be approved for coursework leading to an associate, bachelor’s, or master’s degree. Tuition assistance shall not be available for coursework leading to a doctoral, doctorate, or other terminal degree.

E. Benefit to the City - To be eligible for tuition assistance, the coursework or degree program must be reasonably related to the employee’s current position, current department, or a position or function within another City department, and must provide a demonstrable benefit to the City. The City shall have sole discretion to determine whether a proposed course or degree program meets this requirement; however, such discretion will not be exercised in an arbitrary or discriminatory manner. Approval of a course or degree program shall not guarantee promotion, reclassification, transfer, or appointment to another City position.

F. Tuition Reimbursement Repayment - As a condition of receiving tuition reimbursement, employees hired on or after the effective date of this Agreement who voluntarily separate from City employment shall reimburse the City for a portion of the tuition reimbursement received as follows:

SBSPA MOU 2026-2029
13 1. Employees who voluntarily terminate employment within one (1) year from the date tuition reimbursement is paid by the City shall reimburse the City seventy-five percent (75%) of the amount reimbursed.

2. Employees who voluntarily terminate employment more than one (1) year, but within two (2) years, from the date tuition reimbursement is paid by the City shall reimburse the City fifty percent (50%) of the amount reimbursed.

3. No reimbursement to the City shall be required for employees who voluntarily terminate employment more than two (2) years after the date tuition reimbursement is paid.

4. This repayment obligation shall not apply to employees who retire from the City through CalPERS, are separated due to layoff, disability retirement, death, or are otherwise involuntarily separated from employment.

5. Employees employed by the City prior to the effective date of this Agreement shall be grandfathered and shall not be subject to the tuition reimbursement repayment provisions contained herein.

SECTION 23: COMPENSATION PLAN
A. Basic Compensation Plan

1. Employees covered by this MOU shall be included under the Basic Compensation Plan. Every classification under this Plan shall be assigned a salary range adopted by the City Council. The salary schedule shall consist of 5 steps within each range.

2. The first step is a minimum rate and is normally the hiring rate for the classification. An employee may be assigned, upon appointment, to other than the normal entering salary step within the assigned range upon the recommendation of the Department Head and with the approval of the City Manager when it is decided that such action is in the best interests of the City.

3. The second step, B step, is a merit adjustment which may be given at the end of the probationary period subject to the recommendation of the Department Head and with the approval of the City Manager.

4. The third, fourth and fifth steps are merit adjustments to encourage an employee to improve their work and to recognize increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of 1 year of service at the preceding step. Each adjustment shall be made subject to the recommendation of the Department Head and with the approval of the City Manager.

B. Advancement within Salary Ranges

1. In order to properly compensate an employee, advancement in salary shall be based on merit.

2. Advancement in salary shall not be automatic but shall depend upon increased service value of the employee to the City.

3. The Department Head and/or the employee’s immediate supervisor shall be responsible to evaluate an employee fairly in an unbiased fashion for the determination of job performance. Advancement shall be made only upon recommendation of the Department Head and with the approval of the City Manager.

4. An employee should be reviewed at least once every 12 months from the effective date of his last performance evaluation, special performance advancement or promotion. Nothing contained herein shall restrict the Department Head from denying the increase after evaluation, nor shall it prevent him from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated.

SBSPA MOU 2026-2029
14 C. Salary Increases

1. Promotional Appointment - When an employee is promoted to a position with a higher salary range, the employee shall be compensated at a step of the salary range assigned to the new position that is closest to providing a 5% salary increase over the base salary received immediately prior to promotion.

2. Temporary Appointment - Employees assigned, in an acting capacity, to a higher classification than the employees’ present classification for a period of not less than 80 consecutive working hours shall be entitled to temporary appointment pay. In addition, employees who are assigned by the department director in writing to regularly scheduled acting assignments of less than 80 hours shall also be entitled to temporary appointment pay. Temporary appointment pay will be retroactive to the first hour served in the higher classification and shall be paid at a rate equal to the first step of the higher classification but in no event shall temporary appointment pay be less than 5% more of the employee’s current rate.

D. Salary Decreases
In the case of a demotion of an employee to a classification with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new classification as recommended by the Department Head with the approval of the City Manager. The employee shall retain his previous anniversary date.

E. Adjustments of Salary Ranges
When a salary range for a given classification is revised upward or downward, the incumbents of positions and classifications affected shall have their existing salary adjusted to the same step in the new salary range and their anniversary date shall not be changed.

F. Salary and Benefits on Suspension
During suspension from the City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except he shall not forfeit his medical health plans, including dental, retirement plan, disability insurance or life insurance. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment for loss of income and benefits during the period of suspension.

G. Salary Adjustments During Term of MOU

1. The salary schedule for each position classification affected is hereby determined and established upon adoption by City Council. Salary increases are as follows:

Effective the first full pay period starting on or after July 1, 2026, employees shall receive a 3% cost-of-living adjustment.

Effective the first full pay period starting on or after July 1, 2027, employees shall receive a 2.5% cost-of-living adjustment.

Effective the first full pay period starting on or after July 1, 2028, employees shall receive a CPI adjustment of not less than 1% and not more than 3%, as measured by the change in the Los Angeles-Long Beach-Anaheim All Urban Consumers Index (CPI-U), unadjusted, for the 12 months ending in April 2028 (April 2027 - April 2028 index).

Wage increases provided under this Agreement shall be made retroactive to the first full pay period starting on or after July 1, 2026, provided the Agreement is ratified by both parties and approved by the City Council.

SBSPA Supervisor and Professional Classifications
Grade Job Classifications
7 Accounting Technician
8 Recreation Specialist
SBSPA MOU 2026-2029
15 Grade Job Classifications
9 Senior Building Technician
10 Executive Assistant
10 Senior Accounting Technician
12 Community Services Coordinator
13 Code Enforcement Officer
18 Building Inspector
20 Senior Code Enforcement Officer
24 Assistant Planner
28 Assistant Engineer
28 Associate Planner
SBSPA Supervisory Classifications
Grade Job Classifications
20 Fleet Maintenance Program Manager
20 Police Services Manager
25 Water Services Supervisor
25 Maintenance Services Supervisor
32 Senior Utilities Supervisor
The parties agree to meet and confer no later than November 1, 2026, regarding implementation of the compensation study. The purpose of the meet and confer is to explore ways to bring positions up to the market median, taking into consideration operational needs and budgetary constraints. The parties agree that any changes to bargaining-unit position salaries as a result of this meet and confer process will be made by mutual agreement only.

SECTION 24: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay

1. Upon the Department Head’s recommendation and approval of the City Manager, an employee may be granted a leave of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed 180 working days.

2. Upon written request of the employee, the City Manager may grant a leave of absence, with or without pay, for a period not to exceed 1 year.

3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted. Failure on the part of the employee to report promptly at such leave’s expiration and receipt of notice to return to duty shall be cause for discharge.

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16 4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except an employee shall receive their monthly flex dollar allowance and the City, as specifically provided for in this MOU, shall contribute to the employee’s disability insurance plan, and life insurance plan for the first 30 days of leave of absence.

B. Military Leave of Absence

1. Military leave shall be granted in accordance with the provisions of Federal and State law. All employees entitled to military leave shall give the Department Head an opportunity within the limits of military regulations to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the Department Head of such leave request 10 working days in advance of the beginning of the leave.

2. In addition to the provisions of State law, the City shall continue to provide eligible employees on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first 3 months of military leave. During said period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance (if applicable).

3. After the first 3 months of military leave, the employee may continue said benefits at his cost.

C. Pregnancy Disability Leave of Absence

1. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. The employee may elect to take a lesser period of leave.

2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay.

D. Family Leave
Upon a demonstration of need and subject to the following conditions, an employee may take leave or unpaid leave to care for his newborn infant, whether through parentage or adoption, or to care for a seriously ill or injured member of the employee’s “immediate family” as defined in Section 6.

1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City.

2. Requests for family leave must be submitted in writing to the employee’s supervisor at the earliest possible date preceding the time when the leave is to begin.

3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws.

4. In the event of an extended family leave, the employee may be required to periodically report on the status of the situation giving rise to the leave.

5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager consistent with the provisions of State and Federal Family Leave laws.

E. Catastrophic Leave
The purpose of the Catastrophic Leave Pool is to enable full time employees to receive and donate vacation, administrative leave, and CTO leave credits on an hour for hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or a member of their immediate family. Sick Leave is excluded from this program.

The following conditions shall apply to Catastrophic Leave:

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17 1. Catastrophic Leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident.

2. The leave pool shall be administered by the Finance Department.

3. Employees must be in regular full-time appointed positions to be eligible to receive catastrophic leave.

4. Employees receiving Long-Term Disability payments are excluded from receiving catastrophic leave under this program.

5. All donations are to be confidential, between the donating employee and the Finance Department.

6. Employees donating to the pool must have 40 hours of paid leave available after making a donation.

7. Donating employees must sign an authorization, including specifying the specific employee to be the recipient of the donation.

8. Donations will be subject to applicable tax laws.

9. The availability of Catastrophic Leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee.

10. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician’s Statement that the presence of the employee is necessary.

11. Catastrophic Leave due to the illness or injury of the employee will require medical justification as evidenced by a Physician’s Statement as to the employee’s condition.

SECTION 25: MISCELLANEOUS
Layoff
The City is to give Association 45 days prior notice before the effective date of any layoffs. During this 45-day period, the City will, upon request, meet and confer on the impact of the layoffs.

Labor Management Committee
The City and SBSPA shall form a Labor Management Committee during the term of this MOU. After formation, the Labor Management Committee shall meet quarterly.

SECTION 26: APPEALS
A. Employees shall be allowed to appeal written reprimands to the Personnel Officer. Such appeals shall be filed within 14 calendar days. The decision of the Personnel Officer shall be final.

B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation shall be interpreted to allow employees to present evidence showing the absence was for good cause and that circumstance prevented them from contacting the City.

SECTION 27: “ME-TOO” CLAUSE
If, during the term of this agreement, any represented bargaining unit receives an annual across-the-board salary increase (as a percentage of pay) which is greater than that received by the Association, that greater increase shall immediately be extended to Association members.

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18 SECTION 28: NEW EMPLOYEE ORIENTATION/EMPLOYEE INFORMATION A. New Employee Orientation

1. City will provide the Association with 10 calendar days advanced notice of all new employee orientations within the bargaining unit, unless it is unable to reasonably do so because of an unforeseeable urgent need critical to City operations. If such a case arises, the City will provide as much notice as possible to the Association or make other arrangements for the Association to meet with the new employee. The Association will select its representative to attend the orientations. When selecting its representative, the Association will make reasonable efforts to minimize disruption to the department’s operational needs. If, due to operational needs, no Association representative is available, the City and the Association will arrange an alternative time for the Association to meet with the new employee.

2. The Association will be provided up to 30 minutes at the end of the orientation to present membership information to the onboarding employee(s). Human Resources staff will not be present during the Association’s portion of the onboarding. Release time will be provided to the Association representative for this meeting.

B. Employee Information

1. The City will provide the employee information it has on file in compliance with AB119 (name, job, title, department, work location, work, home and personal cellular telephone numbers, personal email addresses on file with the City, and home address for all new hires within the bargaining unit within 30 days of hire.

2. In addition, the City will provide the SBSPA with a digital file containing the same information for all employees in SBSPA represented classifications upon request.

SECTION 29: MAINTENANCE OF MEMBERSHIP
Any employee in this unit who has authorized Association dues deductions on the effective date of this MOU or at any time subsequent to the effective date of this MOU shall continue to have such dues deductions made by the City; provided however, that any employee in the unit may terminate such Association dues by notifying the Association in writing of his/her termination of membership in the Association. Such notification shall be delivered in person or by U.S. mail and should be in the form of a letter containing the following information: employee name, employee number, job classification, and department name. The Association will notify the City’s Human Resources Department with the appropriate documentation to process any dues cancellations within ten (10) business days after receipt of the withdrawal.

SECTION 30: TERM
The Memorandum of Understanding shall remain in full force and effect from July 1, 2026, until midnight, June 30, 2029.

SECTION 31: RATIFICATION
This Memorandum of Understanding is subject to approval and adoption by the City Council and ratification by the required number of the duly authorized representatives of the Association. Following such approval and adoption, the Memorandum of Understanding shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council.

IN WITNESS HEREOF, the parties have caused this Memorandum of Understanding to be executed on [TBD].

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19 EXECUTED SIGNATURE PAGE
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Seal Beach Supervisors & Professionals
Association (SBSPA)

MEMORANDUM OF UNDERSTANDING

REDLINE
Resolution 7664 [TBD]
ADOPTED: June 23, 2025 [TBD]
EXPIRES: June 30, 2026 2029
Proposed Term: July 1, 2026 - June 30, 2029
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TABLE OF CONTENTS
SECTION 1: RECOGNITION
SECTION 2: CITY RIGHTS
SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE SECTION 4: RETIREMENT HEALTH INSURANCE
SECTION 5: SICK LEAVE
SECTION 6: BEREAVEMENT LEAVE
SECTION 7: VACATION TIME
SECTION 8: HOLIDAYS
SECTION 9: RETIREMENT
SECTION 10: OVERTIME AND CALL OUT PAY
SECTION 11: COMPENSATORY TIME OFF (CTO)
SECTION 12: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
SECTION 13: SENIORITY BONUS
SECTION 14: AUTOMOBILES AND MILEAGE
SECTION 14-A: UNIFORMS & EQUIPMENT/UNIFORM ALLOWANCE
SECTION 15: ADMINISTRATIVE LEAVE
SECTION 16: JURY DUTY
SECTION 17: LIMITATIONS
SECTION 18: DEFERRED COMPENSATION
SECTION 19: BILINGUAL COMPENSATION
SECTION 20: HEALTH WELLNESS PROGRAM
SECTION 21: WORK SCHEDULE
SECTION 22: TUITION REIMBURSEMENT
SECTION 23: COMPENSATION PLAN
SECTION 24: LEAVES OF ABSENCE
SECTION 25: MISCELLANEOUS
SECTION 26: APPEALS
SECTION 27: “ME-TOO” CLAUSE
SECTION 28: NEW EMPLOYEE ORIENTATION/EMPLOYEE INFORMATION SECTION 29: MAINTENANCE OF MEMBERSHIP
SECTION 30: TERM
SECTION 31: RATIFICATION
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MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF SEAL BEACH
AND

SEAL BEACH SUPERVISORS & PROFESSIONALS ASSOCIATION
SECTION 1: RECOGNITION
A. Pursuant to the provisions of Employee-Employer Relations Resolution 5242, as amended, the City of Seal Beach (hereinafter called the “City” and/or “Employer” and/or “Management” interchangeably) has recognized for the purpose of this Memorandum of Understanding (MOU), the Seal Beach Chapter of the Supervisors and Professionals Association (SBSPA), an association of employees of the City of Seal Beach, hereinafter referred to as “Association”.

B. The City recognizes the Association as the representative of the employees in the classification and assignments set forth in Section 21.G 23.G below for the purpose of meeting its obligations under this MOU, the Meyers-MiliasBrown Act, Government Code Section 3500 et seq., when City rules, regulations, or laws affecting wages, hours and/or other terms and conditions of employment are amended or changed.

C. The City agrees that the recognized representatives of Association not to exceed 4 in number shall be entitled to meet and confer with City during said recognized representatives’ normal working hours without suffering any loss in pay while absent from the duties for such purpose. City also agrees that such representatives may utilize a total of not more than 3 hours per year without suffering any loss in pay for such absence for the purpose of meeting with employees who are members of Association and/or other officers of Association.

D. City recognizes Association’s right to appoint or elect representatives to meet and confer with City’s management representatives on salaries, wages, and terms and conditions of employment. Association agrees to notify City in writing as to the identity of the representatives and of subsequent appointments, if any. Association and City agree that employees appointed or elected as Association representatives shall be required to work full time.

E. It is recognized and agreed that no Association business and/or meetings will be conducted and/or attended by employees of City during their respective hours of duty and work unless specified herein.

F. Representatives and/or officers of Association shall not interrupt the work of any employee of City at any time to conduct business or other matters connected with Association without prior consent of Management.

G. This document supersedes all prior Memoranda of Understanding and verbal agreements between the parties hereto.

SECTION 2: CITY RIGHTS
A. Rights/Responsibilities
This City reserves, retains and is vested with solely and exclusively, all rights of management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include but not be limited to, the following rights:

1. To manage the City generally and to determine the issues of policy.

2. To determine the existence or nonexistence of facts which are the basis of the management decision(s).

3. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services.

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4. To determine the nature, manner, means and technology and extent of services to be provided to the public.

5. To determine methods of financing.

6. To determine types of equipment or technology to be used.

7. To determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted.

8. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City.

9. To assign work to and schedule employees in accordance with any requirements set forth in this MOU, and to establish and change work schedules and assignments upon reasonable notice insofar as such changes do not conflict with this MOU.

10. To layoff employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive.

11. To establish and modify productivity and performance programs and standards.

12. To discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause.

13. To determine minimum qualifications, skills, abilities, knowledge, selection procedures and standards, job classifications and to reclassify employees in accordance with this MOU and applicable resolutions and codes of the City.

14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the MOU and applicable resolutions and codes of the City.

15. To determine policies, procedures and standards for selection, training and promotion of employees in accordance with this MOU and applicable resolutions and codes of the City.

16. To establish reasonable employee performance standards including but not limited to, quality and quantity standards and to require compliance therewith.

17. To maintain order and efficiency in its facilities and operation.

18. To establish and promulgate and/or modify rules and regulations to maintain order and safety and which are not in contravention with the Agreement.

19. To restrict the activity of an employee organization on municipal property and on municipal time except as set forth in this MOU.

20. To take any and all necessary action to carry out the mission of the City in emergencies.

B. Where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of City Rights shall impact the wages, hours and other terms and conditions of employment of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU.

SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A. Health Insurance Coverage

1. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum SBSPA MOU 2026-2029 | NEGOTIATION REDLINE
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contribution. For calendar year 2024, CalPERS has established the minimum PEMHCA contribution at $157 per month per employee.

2. The City shall contribute an equal amount towards the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees.

3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the Association during negotiations. For employees participating in the City’s cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the cafeteria plan. Beginning January 1, 2025, the monthly flex dollar allowance shall be:

Coverage Level Monthly Flex Dollar Allowance
Employee only $1,292.91/month
Employee and 1 dependent $1,997.96/month
Employee and 2 or more dependents $2,583.76/month

4. A portion of the monthly flex dollar allowance is identified as the City’s contribution towards PEMHCA. Thus, for example, in calendar year 2025, an employee only monthly flex dollar allowance is $1,292.91; of that $1,292.91, $8 $158 has been designated by the City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the City’s cafeteria plan.

5. Every January 1st during the term of this agreement, the City shall increase the contribution amounts above by the average percentage of increase for basic plans published by CalPERS which sets health insurance premiums for the coverage year.

6. Employees meeting the waiver criteria and electing to waive enrollment in the City’s cafeteria plan are eligible to receive $350 $550 per month beginning July, 2026 (upon showing proof of medical insurance coverage under an alternative plan). Election forms are available in Human Resources.

7. Full-time employees covered by this MOU who have completed 30 days of uninterrupted service shall be enrolled in the cafeteria plan on the first day of the next succeeding month.

8. Employees who change classification from full-time to part-time provisional, hourly or seasonal shall not be eligible for participation in the cafeteria plan.

9. City shall not contribute to the cafeteria plan for any employee during any month the employee is on leave of absence without pay or who is absent from regular duties without authorization, for a full calendar month. City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers’ Compensation Insurance.

B. Life Insurance
Employees covered by this agreement shall receive a $50,000 term life insurance policy paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month.

C. Income Continuation
Employees covered by this Agreement shall receive a policy to provide for income continuation of 66.67% of the employee’s monthly salary, up to a maximum of $5,000 per month, whichever is lesser. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. Said income continuation shall commence on the 31st day SBSPA MOU 2026-2029 | NEGOTIATION REDLINE
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of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while the employee is absent from work for a period of up to age 65.

SECTION 4: RETIREMENT HEALTH INSURANCE
A. Employees covered by this Agreement shall have the option upon retirement, to continue participation in the City’s health insurance program at the employee’s expense.

B. Employees covered by this Agreement who were hired before April 13, 2009 by the City, have 20 or more combined years of employment with the City, have reached 55 years of age, and retire after December 31, 2010, shall be provided with individual medical insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided capped at the Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents medical insurance is identified as the City’s contribution towards PEMHCA.

C. On or after January 1st, 2008, the City shall contribute to the cost of medical coverage for each eligible retiree and dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution.

D. In all cases, the City’s contribution for eligible dependent coverage for retirees shall terminate with the death of the retiree.

E. In the event an eligible retired employee resides in an area where the health plans provided by the City are not in effect, that retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution at time of retirement.

SECTION 5: SICK LEAVE
A. All full-time employees covered by this MOU shall accrue sick leave at the rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up to and including 520 hours. Except as otherwise provided in this MOU, no employee shall receive further accruals once the 520 hour maximum is reached.

B. The Department Head may require employees to present proof of illness for sick leaves in excess of 3 working days.

C. Except as otherwise provided, employees shall not be eligible for any payment for sick leave balances upon termination.

D. Employees who are on authorized leaves of absence, without pay, shall not accrue sick leave hours during said leaves of absence.

E. Sick leave balances may not be used to defer a disability retirement.

SECTION 6: BEREAVEMENT LEAVE
The City agrees to provide 40 hours bereavement leave with pay for death in the immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. “Immediate family” is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, foster child, child of domestic partner, a legal ward, mother-in-law, father-in-law, registered domestic partner-in-law or dependent relative living with the employee. If 5 days of the employee’s regular work schedule exceeds 40 hours, the employee may take off work the number of hours in excess of 40 necessary to equal 5 days, without pay, but may use accrued leave time for those hours above 40.

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SECTION 7: VACATION TIME
A. All full-time employees covered by this Agreement, who have passed the employee probationary period (as defined in the Personnel Rules and Regulations, Section 6.01) shall be granted a vacation with pay of approximately 80 hours per year up to a maximum of approximately 160 hours per year.

B. Full-time employees covered by this Agreement, who shall have at least five years of continuous service, shall be entitled to 8 additional hours of vacation per year of full-time continuous service for each year of service in excess of 5 years up to a maximum of approximately 160 hours per year.

C. The vacation accrual schedule is as follows:

Years Service Vacation Hours
Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours 1 80 3.0769 80
2 80 3.0769 80
3 80 3.0769 80
4 80 3.0769 80
5 80 3.0769 80
6 88 3.3846 88
7 96 3.6923 96
8 104 4.0000 104
9 112 4.3076 112
10 120 4.6153 120
11 128 4.9230 128
12 136 5.2307 136
13 144 5.5384 144
14 152 5.8461 152
15 160 6.1538 160
D. Employees covered by this agreement considered as hourly, part-time and/or seasonal employees shall not be eligible for paid vacations.

E. Employees covered by this agreement who are on leaves of absence, without pay, shall not accrue vacation leave hours during said leaves of absence.

F. Employees covered by this agreement shall only be allowed to accrue a maximum of 240 hours of vacation. Once this maximum is reached, all further accruals will cease. Vacation accruals will recommence after the employee has taken vacation and the employee’s accrued hours drop below the maximum. The maximum can only be exceeded with the approval of the City Manager in writing.

G. Employees are encouraged to use at least the amount of vacation hours earned each fiscal year. Those employees who have been credited with preexisting leave hours are expected to use a portion of the excess as leave time, in addition to the new vacation hours, each year until the maximum accrual is met. The City recognizes that a number SBSPA MOU 2026-2029 | NEGOTIATION REDLINE
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of long-term employees have accrued substantially more leave time than shorter-term employees, and that it will likely take them significantly longer to achieve this goal. It is the intent of this section to balance the personal interests of the employee with the financial concerns of the City; as such, significant progress toward reaching the maximum accrual amounts may be deemed a success.

H. Vacation leave time shall not be approved until such time as it has been earned, unless prior, special arrangements have been made with the City Manager. Vacation leave shall be requested by the employee prior to the start of the vacation leave period. Such vacation leave to be taken shall be subject to the prior approval of the Department Head, or designee, subsequent to consideration of the departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies.

I. Not more than twice in each fiscal year, an employee who has completed at least 1 year of continuous service shall, upon request, receive compensation for up to 100 hours of accrued and unused vacation time.

I. An employee who has completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired before July 1, 2026 may receive compensation for up to 200 hours per fiscal year, in no more than two payments; and (2) employees hired on or after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

SECTION 8: HOLIDAYS
A. The City agrees to grant all full-time employees a full shift pay for each holiday recognized by City. Every full-time employee of the City shall be granted the following holidays with pay:

Holiday Date
New Year’s Day January 1st
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4th
Labor Day First Monday in September
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Calendar day following Thanksgiving Day Christmas Eve December 24th
Christmas Day December 25th
2 Floating Holidays Discretion of employee
Total of 13 holidays annually
*Floating Holidays must be taken during each fiscal year (July 1st through June 30th). Floating holidays must be approved in advance by the Department Head.

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B. When a holiday falls on a Sunday, the next day (Monday) shall be observed as a holiday. When a holiday falls on a Saturday, the preceding day (Friday) shall be observed as a holiday.

C. When a holiday falls on a full-time employee’s regularly scheduled day off, the employee shall receive compensatory time off for a full shift in lieu of holiday pay, in keeping with other provisions of this MOU.

Example #1: Employee A normally works a 9/80 schedule, and a holiday falls on the employee’s Friday off, Employee A would receive 8 hours of compensatory time off.

Example #2: Employee B normally works a 9/80 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, or Thursday, Employee B would receive 9 hours of compensatory time off.

Example #3: Employee normally works a 4/10 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, Thursday, or Friday, Employee C would receive 10 hours of compensatory time off.

D. An employee who is required to work on a holiday shall receive pay computed at 1½ times the employees’ basic hourly rate for the number of hours actually worked.

Example: Employee A works 6 hours on Christmas Day. Employee A would earn pay computed as follows:

Hours Pay Rate
Full-shift holiday pay base hourly rate
6 hours work pay regular hourly rate or overtime hourly rate, as applicable under MOU SECTION 9: RETIREMENT
A. The retirement program provided by the City shall consist of a pooled Public Employees’ Retirement System (PERS) plan, which includes the following Government Code provisions:

Section 20042 One Year Final Compensation
Section 20965 Credit of Unused Sick Leave
Section 21024 Military Service Credit
B. Miscellaneous

1. The Miscellaneous employees shall pay the full 7% of their CalPERS required contribution of their compensation earnable.

2. The City shall provide PERS Section 21354 - 2% @ 55 for miscellaneous members.

3. New employees/members hired on or after January 1, 2013 as defined by the Public Employees’ Pension Reform Act (PEPRA) will be hired at the retirement formula in accordance with the PEPRA and other legislation.

SECTION 10: OVERTIME AND CALL OUT PAY
A. If work beyond normal workday, workweek or work period is required, the employee who may be asked to perform such overtime shall be notified of the apparent need for such overtime as soon as practicable prior to when the overtime is expected to begin.

B. Call out and overtime pay shall be paid at the rate of time and one-half the hourly rate. Minimum “call out” time (when returning to work) shall be 3 hours. Call out time shall start when employee is called to service.

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C. Overtime will be computed by dividing the employee’s regular monthly salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to be submitted and computed with the regular payroll.

D. Notwithstanding any provision of this Section, the employee shall be entitled to select either compensated overtime or compensatory time off subject to budget limitations, departmental rules and regulations, and Section 11 of this MOU.

SECTION 11: COMPENSATORY TIME OFF (CTO)
The maximum (cap) of CTO is 120 hours. Compensatory Time earned in excess of 120 hours will be paid as overtime during the pay period accrued.

SECTION 12: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee, when so appointed, must perform the duties and assume the responsibilities of the higher classification for 80 consecutive working hours and shall be paid according to the step in the assigned salary range of the new position which is a minimum of 5% higher than the salary received before the provisional appointment (not to exceed the top step).

B. When necessary and in the best interest of the City, the City Manager may provisionally assign an employee to a higher level of duty and responsibility than provided for in the employee’s assigned classification which is not otherwise a part of an adopted classification. In the case of such an assignment, the employee must perform the higher level of duties for 80 consecutive working hours; thereafter the employee shall receive additional compensation of 5% so long as the assignment is authorized by the City Manager.

SECTION 13: SENIORITY LONGEVITY BONUS
Employees who have achieved 10 years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the 10th anniversary of their employment.

SECTION 14: AUTOMOBILES AND MILEAGE
Employees covered by this MOU, utilizing their privately-owned automobiles for City business on a non-regular basis, shall be entitled to reimbursement for costs incurred at the mileage rate established by the Internal Revenue Service (IRS).

SECTION 14-A: UNIFORMS & EQUIPMENT/UNIFORM ALLOWANCE
A. Public Works Department Employees
Employees in designated classifications working in the Public Works Department shall be entitled to uniform service.

The Department Head will designate the uniform and the City will select the vendor. The designated uniform and vendor may be changed from time-to-time, as solely determined by the Department Head or City. The City shall pay the total cost of renting and laundering the uniforms for eligible employees. The designated classifications for uniform service are: Fleet Maintenance Program Manager, Water Services Supervisor, and Maintenance Services Supervisor, and Senior Utilities Supervisor. The City Manager, in his or her discretion, may add additional classifications or positions/assignments within classifications on recommendation of the Department Head.

B. Safety Shoes
The City will provide employees in the classifications of Fleet Maintenance Program Manager, Water Services Supervisor, and Maintenance Services Supervisor, and Senior Utilities Supervisor with safety shoes, subject to a SBSPA MOU 2026-2029 | NEGOTIATION REDLINE
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maximum of $250 per calendar year. The Department Head will establish and may revise procedures for the purchase of safety shoes and may add additional classifications with concurrence of the City Manager. The program may provide for payment directly to a vendor or vendors selected by the City, may provide for reimbursement of the actual and necessary expense incurred by the eligible employee, or both and will be subject to change within these parameters, as solely determined by the City, from time to time. The Department Head may designate or change the designation of styles, models or specifications for shoes that will be eligible for this benefit. Regardless of other requirements, shoes must meet all applicable safety rules and regulations to be eligible. Employees may use any remaining funds from their annual safety shoe allowance to purchase shoe-related items, including shoe inserts, socks, and shoelaces. In addition, employees may purchase one (1) additional pair of safety shoes and/or shoerelated items, up to an additional $250 per calendar year, with prior written approval from the Department Director.

C. Police Department Uniform Allowance
Employees who work in the Police Department and are assigned to wear a uniform shall receive a $1,250 annual uniform allowance. New employees in the Police Department shall receive initial uniforms as determined by the Chief of Police.

SECTION 15: ADMINISTRATIVE LEAVE
A. Employees shall be entitled to hours equivalent to two work days of administrative leave during each fiscal year.

C. B. Administrative leave hours may not be carried forward to succeeding years nor may they be turned in for cash value.

SECTION 16: JURY DUTY
See Personnel Rules and Regulations (Resolution 5446) Section 10.06 (C) for rules on jury duty.

SECTION 17: LIMITATIONS
A. No employee who is receiving Workers’ Compensation payments and benefits is eligible to receive overlapping benefits (except life insurance) stated in this MOU.

B. City shall not make any monthly payments for premiums for any insurance benefit listed in this MOU, or uniform allowance, supplemental pay of any type and/or type of bonus on behalf of or to any employee who has been absent without authorization during entire said month or for any employee who has terminated for any reasons whatsoever or who is on leave of absence without pay or who is suspended from duties without pay for the entire said month.

SECTION 18: DEFERRED COMPENSATION
The City shall contribute the amount of $40 per payroll period into a deferred compensation program for each employee in the Supervisors and Professionals and Technical position classifications.

Effective the first full pay period on or after July 1, 2026, the City shall contribute $50 per payroll period into a deferred compensation program for each employee in the Supervisors and Professionals and Technical position classifications.

SECTION 19: BILINGUAL COMPENSATION
A. Upon the recommendation of a department director, the City Manager may award a bilingual compensation bonus of $52.50 per payroll period to those employees in positions determined to require bilingual skills.

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B. The City Manager shall require the taking of competency tests to certify the employee as eligible for bilingual compensation based on the employee’s proficiency in speaking the language determined to be required. Such certification shall be a condition precedent to qualifying for bilingual pay.

SECTION 20: HEALTH WELLNESS PROGRAM
A. Medical Maintenance & Wellness Program
The City shall reimburse Employee, as a medical benefit, for Employee’s actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $400 per fiscal year. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager.

SECTION 21: WORK SCHEDULE
A. At the discretion of the City Manager, work schedules may be altered as needed to accommodate service demand levels of the residents of the City of Seal Beach. The parties shall establish a 4/10 working group to explore the merits of a 4/10 work schedule.

A. The City shall implement a 4/10 work schedule as a pilot program beginning on a date designated by the City.

During the pilot program, City Hall shall be open to the public Monday through Thursday from 7:30 a.m. to 5:30 p.m. and shall be closed to the public on Fridays.

B. The City Council may discontinue the pilot program at any time. Unless discontinued earlier, the pilot program shall automatically expire. at the end of the day immediately preceding the six-month anniversary of the implementation date. Any continuation or renewal of the 4/10 work schedule beyond the pilot period shall require City Council action.

C. Department Heads shall retain discretion to assign employee schedules and staffing levels as necessary to maintain operational needs and ensure adequate service to the public.

B. Holiday Closures - The City Manager may designate up to 5 specific holiday closure workdays in each calendar year between Christmas Day and New Year’s Day during which employees may be required to take time off, charged to leave without pay, the employee’s accumulated compensatory time, vacation, floating holidays, or a combination thereof, as determined by the affected employee. The days must be consecutive for the employee but may differ between employees. Employees who do not have sufficient accumulated time off in their account to cover the required time off may request, and will be granted, sufficient advance on their vacation accrual to cover the uncovered balance. This advance will be recovered with the next vacation accruals earned by the employee. Time off of work under this provision shall not be deemed a layoff.

C. If an employee is required to work on a City Manager designated closure work day, the employee will receive pay computed at 1½ times the employees’ basic hourly rate for the number of hours actually worked.

Example: Employee A normally works a 9/80 schedule, and is required to work 4 hours on a City Manager designated holiday closure work day on December 28, 2016. Employee A would earn pay computed as follows:

Hours Pay Rate
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D. Police Department employees are excluded from this provision.

D. Police Department employees are excluded from the holiday-closure provisions in subsections B and C.

SECTION 22: TUITION REIMBURSEMENT
A. Employees attending accredited community colleges, universities, and trade schools for the purpose of obtaining a higher education degree may apply for reimbursement of tuition, books, student fees and parking. Reimbursement is capped at the tuition rate of the Cal State University system for up to 2 semesters of full-time, undergraduate enrollment each calendar year.

B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

A. Higher Education Degree Programs - Employees attending accredited community colleges, universities or trade schools for the purpose of obtaining an eligible higher education degree may apply for reimbursement of tuition, books, student fees, and parking. Tuition reimbursement is capped at the 2026 California State University (CSU) tuition rates, not to exceed $3,908 per semester and $7,816 per fiscal year.

B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

C. Minimum Service Requirement - An employee must have completed at least one (1) year of continuous employment with the City before becoming eligible to receive tuition assistance. Eligibility shall be determined as of the date the employee’s course begins.

D. Eligible Degree Programs - Tuition assistance may be approved for coursework leading to an associate, bachelor’s, or master’s degree. Tuition assistance shall not be available for coursework leading to a doctoral, doctorate, or other terminal degree.

E. Benefit to the City - To be eligible for tuition assistance, the coursework or degree program must be reasonably related to the employee’s current position, current department, or a position or function within another City department, and must provide a demonstrable benefit to the City. The City shall have sole discretion to determine whether a proposed course or degree program meets this requirement; however, such discretion will not be exercised in an arbitrary or discriminatory manner. Approval of a course or degree program shall not guarantee promotion, reclassification, transfer, or appointment to another City position.

F. Tuition Reimbursement Repayment - As a condition of receiving tuition reimbursement, employees hired on or after the effective date of this Agreement who voluntarily separate from City employment shall reimburse the City for a portion of the tuition reimbursement received as follows:

1. Employees who voluntarily terminate employment within one (1) year from the date tuition reimbursement is paid by the City shall reimburse the City seventy-five percent (75%) of the amount reimbursed.

2. Employees who voluntarily terminate employment more than one (1) year, but within two (2) years, from the date tuition reimbursement is paid by the City shall reimburse the City fifty percent (50%) of the amount reimbursed.

3. No reimbursement to the City shall be required for employees who voluntarily terminate employment more than two (2) years after the date tuition reimbursement is paid.

4. This repayment obligation shall not apply to employees who retire from the City through CalPERS, are separated due to layoff, disability retirement, death, or are otherwise involuntarily separated from employment.

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5. Employees employed by the City prior to the effective date of this Agreement shall be grandfathered and shall not be subject to the tuition reimbursement repayment provisions contained herein.

SECTION 23: COMPENSATION PLAN
A. Basic Compensation Plan

1. Employees covered by this MOU shall be included under the Basic Compensation Plan. Every classification under this Plan shall be assigned a salary range adopted by the City Council. The salary schedule shall consist of 5 steps within each range.

2. The first step is a minimum rate and is normally the hiring rate for the classification. An employee may be assigned, upon appointment, to other than the normal entering salary step within the assigned range upon the recommendation of the Department Head and with the approval of the City Manager when it is decided that such action is in the best interests of the City.

3. The second step, B step, is a merit adjustment which may be given at the end of the probationary period subject to the recommendation of the Department Head and with the approval of the City Manager.

4. The third, fourth and fifth steps are merit adjustments to encourage an employee to improve their work and to recognize increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of 1 year of service at the preceding step. Each adjustment shall be made subject to the recommendation of the Department Head and with the approval of the City Manager.

B. Advancement within Salary Ranges

1. In order to properly compensate an employee, advancement in salary shall be based on merit.

2. Advancement in salary shall not be automatic but shall depend upon increased service value of the employee to the City.

3. The Department Head and/or the employee’s immediate supervisor shall be responsible to evaluate an employee fairly in an unbiased fashion for the determination of job performance. Advancement shall be made only upon recommendation of the Department Head and with the approval of the City Manager.

4. An employee should be reviewed at least once every 12 months from the effective date of his last performance evaluation, special performance advancement or promotion. Nothing contained herein shall restrict the Department Head from denying the increase after evaluation, nor shall it prevent him from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated.

C. Salary Increases

1. Promotional Appointment - When an employee is promoted to a position with a higher salary range, the employee shall be compensated at a step of the salary range assigned to the new position that is closest to providing a 5% salary increase over the base salary received immediately prior to promotion.

2. Temporary Appointment - Employees assigned, in an acting capacity, to a higher classification than the employees’ present classification for a period of not less than 80 consecutive working hours shall be entitled to temporary appointment pay. In addition, employees who are assigned by the department director in writing to regularly scheduled acting assignments of less than 80 hours shall also be entitled to temporary appointment pay. Temporary appointment pay will be retroactive to the first hour served in the higher classification and shall be paid at a rate equal to the first step of the higher classification but in no event shall temporary appointment pay be less than 5% more of the employee’s current rate.

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D. Salary Decreases
In the case of a demotion of an employee to a classification with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new classification as recommended by the Department Head with the approval of the City Manager. The employee shall retain his previous anniversary date.

E. Adjustments of Salary Ranges
When a salary range for a given classification is revised upward or downward, the incumbents of positions and classifications affected shall have their existing salary adjusted to the same step in the new salary range and their anniversary date shall not be changed.

F. Salary and Benefits on Suspension
During suspension from the City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except he shall not forfeit his medical health plans, including dental, retirement plan, disability insurance or life insurance. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment for loss of income and benefits during the period of suspension.

G. Salary Adjustments During Term of MOU

1. The salary schedule for each position classification affected is hereby determined and established upon adoption by City Council. Salary increases are as follows:

First pay period starting on or after July 1, 2025 - Employees shall receive a 2.5% cost of living adjustment.

Effective the first full pay period starting on or after July 1, 2026, employees shall receive a 3% cost-of-living adjustment.

Effective the first full pay period starting on or after July 1, 2027, employees shall receive a 2.5% cost-of-living adjustment.

Effective the first full pay period starting on or after July 1, 2028, employees shall receive a CPI adjustment of not less than 1% and not more than 3%, as measured by the change in the Los Angeles-Long Beach-Anaheim All Urban Consumers Index (CPI-U), unadjusted, for the 12 months ending in April 2028 (April 2027 - April 2028 index).

Wage increases provided under this Agreement shall be made retroactive to the first full pay period starting on or after July 1, 2026, provided the Agreement is ratified by both parties and approved by the City Council.

The City shall make a one-time non-PERSable lump sum payment of $2,000 with the payroll for the pay period starting after ratification of this MOU by the City Council, to current employees employed by the City on the payment date.

SBSPA Supervisor and Professional Classifications
Grade Job Classifications
7 Accounting Technician
8 Recreation Specialist*
Account Clerk
9 Senior Building Technician
10 Executive Assistant
10 Senior Accounting Technician
12 Community Services Coordinator
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Grade Job Classifications
13 Code Enforcement Officer
18 Building Inspector
20 Senior Code Enforcement Officer
24 Assistant Planner
28 Assistant Engineer
28 Associate Planner
SBSPA Supervisory Classifications
Grade Job Classifications
20 Fleet Maintenance Program Manager
20 Police Services Manager
25 Water Services Supervisor
25 Maintenance Services Supervisor
32 Senior Utilities Supervisor
The City will conduct a class and compensation study for SBSPA classifications, to be completed in or before March 2026. The City shall have no obligation to take any action regarding employee compensation or classification due to the information contained in the classification and compensation study.

The parties agree to meet and confer no later than November 1, 2026, regarding implementation of the compensation study. The purpose of the meet and confer is to explore ways to bring positions up to the market median, taking into consideration operational needs and budgetary constraints. The parties agree that any changes to bargaining-unit position salaries as a result of this meet and confer process will be made by mutual agreement only.

SECTION 24: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay

1. Upon the Department Head’s recommendation and approval of the City Manager, an employee may be granted a leave of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed 180 working days.

2. Upon written request of the employee, the City Manager may grant a leave of absence, with or without pay, for a period not to exceed 1 year.

3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted. Failure on the part of the employee to report promptly at such leave’s expiration and receipt of notice to return to duty shall be cause for discharge.

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4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except an employee shall receive their monthly flex dollar allowance and the City, as specifically provided for in this MOU, shall contribute to the employee’s disability insurance plan, and life insurance plan for the first 30 days of leave of absence.

B. Military Leave of Absence

1. Military leave shall be granted in accordance with the provisions of Federal and State law. All employees entitled to military leave shall give the Department Head an opportunity within the limits of military regulations to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the Department Head of such leave request 10 working days in advance of the beginning of the leave.

2. In addition to the provisions of State law, the City shall continue to provide eligible employees on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first 3 months of military leave. During said period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance (if applicable).

3. After the first 3 months of military leave, the employee may continue said benefits at his cost.

C. Pregnancy Disability Leave of Absence

1. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. The employee may elect to take a lesser period of leave.

2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay.

D. Family Leave
Upon a demonstration of need and subject to the following conditions, an employee may take leave or unpaid leave to care for his newborn infant, whether through parentage or adoption, or to care for a seriously ill or injured member of the employee’s “immediate family” as defined in Section 6.

1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City.

2. Requests for family leave must be submitted in writing to the employee’s supervisor at the earliest possible date preceding the time when the leave is to begin.

3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws.

4. In the event of an extended family leave, the employee may be required to periodically report on the status of the situation giving rise to the leave.

5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager consistent with the provisions of State and Federal Family Leave laws.

E. Catastrophic Leave
The purpose of the Catastrophic Leave Pool is to enable full time employees to receive and donate vacation, administrative leave, and CTO leave credits on an hour for hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or a member of their immediate family. Sick Leave is excluded from this program.

The following conditions shall apply to Catastrophic Leave:

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1. Catastrophic Leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident.

2. The leave pool shall be administered by the Finance Department.

3. Employees must be in regular full-time appointed positions to be eligible to receive catastrophic leave.

4. Employees receiving Long-Term Disability payments are excluded from receiving catastrophic leave under this program.

5. All donations are to be confidential, between the donating employee and the Finance Department.

6. Employees donating to the pool must have 40 hours of paid leave available after making a donation.

7. Donating employees must sign an authorization, including specifying the specific employee to be the recipient of the donation.

8. Donations will be subject to applicable tax laws.

9. The availability of Catastrophic Leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee.

10. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician’s Statement that the presence of the employee is necessary.

11. Catastrophic Leave due to the illness or injury of the employee will require medical justification as evidenced by a Physician’s Statement as to the employee’s condition.

SECTION 25: MISCELLANEOUS
Layoff
The City is to give Association 45 days prior notice before the effective date of any layoffs. During this 45-day period, the City will, upon request, meet and confer on the impact of the layoffs.

Labor Management Committee
The City and SBSPA shall form a Labor Management Committee during the term of this MOU. After formation, the Labor Management Committee shall meet quarterly.

SECTION 26: APPEALS
A. Employees shall be allowed to appeal written reprimands to the Personnel Officer. Such appeals shall be filed within 14 calendar days. The decision of the Personnel Officer shall be final.

B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation shall be interpreted to allow employees to present evidence showing the absence was for good cause and that circumstance prevented them from contacting the City.

SECTION 27: “ME-TOO” CLAUSE
If, during the term of this agreement, any represented bargaining unit receives an annual across-the-board salary increase (as a percentage of pay) which is greater than that received by the Association, that greater increase shall immediately be extended to Association members.

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SECTION 28: NEW EMPLOYEE ORIENTATION/EMPLOYEE INFORMATION A. New Employee Orientation

1. City will provide the Association with 10 calendar days advanced notice of all new employee orientations within the bargaining unit, unless it is unable to reasonably do so because of an unforeseeable urgent need critical to City operations. If such a case arises, the City will provide as much notice as possible to the Association or make other arrangements for the Association to meet with the new employee. The Association will select its representative to attend the orientations. When selecting its representative, the Association will make reasonable efforts to minimize disruption to the department’s operational needs. If, due to operational needs, no Association representative is available, the City and the Association will arrange an alternative time for the Association to meet with the new employee.

2. The Association will be provided up to 30 minutes at the end of the orientation during the end of the orientation to present membership information to the onboarding employee(s). Human Resources staff will not be present during the Association’s portion of the onboarding. Release time will be provided to the Association representative for this meeting.

B. Employee Information

1. The City will provide the employee information it has on file in compliance with AB119 (name, job, title, department, work location, work, home and personal cellular telephone numbers, personal email addresses on file with the City, and home address for all new hires within the bargaining unit within 30 days of hire.

2. In addition, the City will provide the SBSPA with a digital file containing the same information for all employees in SBSPA represented classifications upon request.

SECTION 29: MAINTENANCE OF MEMBERSHIP
Any employee in this unit who has authorized Association dues deductions on the effective date of this MOU or at any time subsequent to the effective date of this MOU shall continue to have such dues deductions made by the City; provided however, that any employee in the unit may terminate such Association dues by notifying the Association in writing of his/her termination of membership in the Association. Such notification shall be delivered in person or by U.S. mail and should be in the form of a letter containing the following information: employee name, employee number, job classification, and department name. The Association will notify the City’s Human Resources Department with the appropriate documentation to process any dues cancellations within ten (10) business days after receipt of the withdrawal.

SECTION 30: TERM
The Memorandum of Understanding shall remain in full force and effect from July 1, 2025, until midnight, June 30, 2026.

The Memorandum of Understanding shall remain in full force and effect from July 1, 2026, until midnight, June 30, 2029.

SECTION 31: RATIFICATION
This Memorandum of Understanding is subject to approval and adoption by the City Council and ratification by the required number of the duly authorized representatives of the Association. Following such approval and adoption, the Memorandum of Understanding shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council.

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IN WITNESS HEREOF, the parties have hereto caused this Memorandum of Understanding to be executed this 23rd day of June 2025.

IN WITNESS HEREOF, the parties have caused this Memorandum of Understanding to be executed on [TBD].

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EXECUTED SIGNATURE PAGE
CITY OF SEAL BEACH | MMCEA MOU

CITY OF SEAL BEACH

MID-MANAGEMENT AND

CONFIDENTIAL EMPLOYEES ASSOCIATION

MEMORANDUM OF UNDERSTANDING
Resolution 7817
ADOPTED: September 14, 2026
EXPIRES: June 30, 2029
Term: July 1, 2026 - June 30, 2029
CITY OF SEAL BEACH | MMCEA MOU

TABLE OF CONTENTS
1 Recognition
2 Non-Discrimination
3 Health Insurance Coverage; Life & Disability Insurance 4 Retiree Health Insurance
5 Sick Leave
6 Leaves of Absence
7 Vacation
8 Holidays
9 Retirement System
10 Provisional Appointments
11 Longevity Bonus
12 Automobiles and Mileage
13 Jury Duty
14 Administrative Leave
15 Limitations
16 Deferred Compensation
17 Bilingual Compensation
18 Health Wellness Program
19 Work Schedule
20 Salaries
21 Tuition Reimbursement
22 Other Applicable Rules
23 Layoffs
24 Existing Conditions of Employment
25 Me-Too Clause
26 Working Group
27 Term
28 Ratification
CITY OF SEAL BEACH | MMCEA MOU

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF SEAL BEACH AND THE MID-MANAGEMENT AND CONFIDENTIAL EMPLOYEES

ASSOCIATION
SECTION 1: RECOGNITION
The City of Seal Beach (hereafter "City") has recognized the Seal Beach Mid-Management and Confidential Employees Association (hereafter "Association") as the exclusive representative of the employees in the MidManagement and Confidential bargaining unit.

SECTION 2: NON-DISCRIMINATION
A. The parties mutually recognize and agree to protect the rights of all employees to join and/or participate in protected Association activities in accordance with the Employee Relations Ordinance and Government Code sections 3500 and 3511 and agree not to retaliate against employees.

B. The Association and the City agree not to discriminate against any employee or potential employee on the basis of race, sex, religion, color, national origin, ancestry, age, disability, gender, or sexual orientation.

SECTION 3: HEALTH INSURANCE COVERAGE; LIFE & DISABILITY INSURANCE A. Health Insurance Coverage

1. The City shall provide for full-time employees and eligible retired employees a group hospital, medical and dental insurance plan.

2. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution. The City shall contribute an equal amount toward the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees.

3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the employees during negotiations. For employees participating in the City's full flex cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the full flex cafeteria plan. Each eligible employee shall receive the monthly flex dollar allowance applicable to the employee's coverage tier, as adjusted under subsection 5.

4. A portion of the monthly flex dollar allowance is identified as the City's contribution toward PEMHCA. The monthly flex dollar allowance may be used only in accordance with the terms of the full flex cafeteria plan.

5. Effective each January 1 during the term of this Agreement, the monthly flex dollar allowances in effect immediately before that date shall be increased by the average percentage increase for CalPERS basic plans for the applicable coverage year.

6. Employees enrolled in the plan are required to pay any premium amounts in excess of the City contribution. Such amounts will be deducted from the affected employee's payroll check on the first two pay periods of each month.

7. The City's minimum employer contribution under PEMHCA shall be the amount established by CalPERS for the applicable calendar year.

8. Employees meeting the waiver criteria and electing to waive enrollment in the City's full-flex cafeteria plan are eligible to receive $550 per month upon showing proof of medical insurance coverage under an alternative plan. Election forms are available in Human Resources.

9. Part-time, seasonal, provisional and/or hourly employees shall not be eligible for participation in this program.

CITY OF SEAL BEACH | MMCEA MOU

10. Full-time employees covered by this Agreement who have completed 30 days of uninterrupted service shall be enrolled in the full flex cafeteria plan on the first day of the next succeeding month.

11. Employees who change classification from full-time to part-time, provisional, hourly, or seasonal shall not be eligible for participation in the full-flex cafeteria plan.

12. The City shall not contribute a flex dollar amount for any employee during any month the employee is on leave of absence without pay, or is absent from regular duties without authorization, for a full calendar month. The City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers' Compensation Insurance.

B. Life Insurance

1. All employees incumbent in position classifications listed in Section 20 shall receive a $50,000 term life insurance policy paid by the City.

2. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service, with the employee to be enrolled in the program on the first day of the next succeeding month.

C. Income Continuation

1. All employees incumbent in position classifications listed in Section 20 shall receive an income continuation policy providing 66.67% of the employee's monthly salary, up to a maximum of $5,000 per month, whichever is less.

2. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service, with the employee to be enrolled in the program on the first day of the next succeeding month.

3. Income continuation shall commence on the 31st day of sickness or other bona fide absence, or upon expiration of sick leave, whichever occurs later, and shall continue while the employee is absent from work for a period up to age 65.

SECTION 4: RETIREE HEALTH INSURANCE
A. Employees covered by this Agreement shall have the option, upon retirement, to continue participation in the City's health insurance program at the employee's expense.

B. Employees in the Mid-Management and Confidential classifications who were hired before January 1, 2008 by the City, and who retire after December 31, 2009 with 20 or more combined years of employment with the City shall, upon retirement, be provided with individual medical insurance coverage. If an employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided at the rate of (a) the average of the two lowest-cost medical care plans offered by CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the retired employee becomes Medicare eligible, the City's contribution will be capped at the rate of (a) the average of the two lowest-cost Medicare supplement plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare supplement plan, whichever is greater.

C. Employees who were hired on or after January 1, 2008 by the City, and who retire from the City, shall be eligible to receive a City contribution not to exceed the PEMHCA minimum employer contribution toward health coverage under CalPERS, as determined by CalPERS from time to time.

D. An employee with a service retirement who is eligible to receive retiree medical insurance under Section 4, subsections B and C, may also receive an increase to the medical insurance cap in effect at the time of retirement, not to exceed $175 per month in additional contributions, until Medicare begins at age 65 with lower supplemental insurance rates. This additional contribution to the cap will accommodate increases in medical insurance plans over the term of the employee's retirement.

CITY OF SEAL BEACH | MMCEA MOU

E. In all cases, the City's contribution for eligible dependent coverage for retirees shall terminate upon the death of the retiree.

F. If an eligible retired employee resides in an area where the medical plans provided by the City are not in effect, the retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution in effect at the time of retirement.

SECTION 5: SICK LEAVE
A. All full-time employees covered by this Agreement shall accrue sick leave at the rate of one day per month (eight hours). The maximum accrual of sick leave shall be 520 hours.

B. Existing sick leave balances that have remained intact and have not been converted to leave time may be utilized by the employee for sick leave purposes only.

C. Upon termination of employment with the City, all compensable leave hours will be paid to the employee at the employee's base rate of pay. Sick leave balances that have not been converted to leave time will be paid upon termination at 25% of the employee's base rate of pay.

D. Employees who are on authorized leaves of absence without pay shall not accrue sick leave during such leaves of absence.

SECTION 6: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay

1. Upon the Department Head's recommendation and approval of the City Manager, an employee may be granted a leave of absence without pay in cases of emergency or where such absence would not be contrary to the best interests of the City, for a period not to exceed 180 working days.

2. Upon written request of the employee, the City Council may grant a leave of absence, with or without pay, for a period not to exceed one year.

3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held when the leave was granted. Failure to report promptly at the leave's expiration and upon receipt of notice to return to duty shall be cause for discharge.

4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except that the employee shall receive the monthly flex dollar allowance and the City, as specifically provided in this Agreement, shall contribute to the employee's disability insurance and life insurance plans for the first 30 days of leave.

B. Bereavement Leave
The City agrees to provide 40 hours of bereavement leave with pay for a death in the immediate family.

Bereavement leave shall not be charged to or accumulated as sick time or leave time. "Immediate family" is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, stepmother, stepfather, stepchild, foster child, child of domestic partner, legal ward, mother-inlaw, father-in-law, domestic partner-in-law, or dependent relative living with the employee. If five days of the employee's regular work schedule exceeds 40 hours, the employee may take the hours in excess of 40 needed to equal five days without pay, but may use accrued leave for those hours.

C. Military Leave of Absence

1. Military leave shall be granted in accordance with federal and state law. Employees entitled to military leave shall give the Department Head an opportunity, within the limits of military regulations, to determine when such leave shall be taken. Whenever possible, the employee shall notify the Department Head of the leave request 10 working days before the leave begins.

CITY OF SEAL BEACH | MMCEA MOU

2. In addition to the provisions of state law, the City shall continue to provide eligible employees on military leave the monthly flex dollar allowance under the cafeteria plan, disability and life insurance, and retirement, if applicable, for the first three months of military leave. During that period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance, if applicable.

3. After the first three months of military leave, the employee may continue such benefits at the employee's cost.

D. Pregnancy Disability Leave of Absence

1. An employee who is disabled due to pregnancy shall be granted pregnancy disability leave as provided by California law and the federal Family and Medical Leave Act. The employee may elect to take a lesser period of leave.

2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay.

E. Family Leave
Upon a demonstration of need and subject to the following conditions, an employee may take paid or unpaid leave to care for a newborn infant, whether through birth or adoption, or to care for a seriously ill or injured member of the employee's "immediate family" as defined in Section 6.B.

1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City.

2. Requests for family leave must be submitted in writing to the employee's supervisor at the earliest possible date preceding the time when the leave is to begin.

3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with state and federal family leave laws.

4. In the event of an extended family leave, the employee may be required to report periodically on the status of the situation giving rise to the leave.

5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager, consistent with state and federal family leave laws.

F. Catastrophic Leave
The purpose of the Catastrophic Leave Pool is to enable full-time employees to receive and donate vacation, administrative leave, and compensatory time off credits on an hour-for-hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or an immediate family member. Sick leave is excluded from this program. The following conditions apply:

1. Catastrophic leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident.

2. The leave pool shall be administered by the Finance Department.

3. Employees must be in regular, full-time appointed positions to be eligible to receive catastrophic leave.

4. Employees receiving long-term disability payments are excluded from receiving catastrophic leave under this program.

5. All donations are confidential between the donating employee and the Finance Department.

6. Employees donating to the pool must have 40 hours of paid leave available after making a donation.

7. Donating employees must sign an authorization specifying the employee who will receive the donation.

8. Donations will be subject to applicable tax laws.

CITY OF SEAL BEACH | MMCEA MOU

9. The availability of catastrophic leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee.

10. Catastrophic leave due to illness or injury of an immediate family member may require medical justification, as evidenced by a physician's statement that the employee's presence is necessary.

11. Catastrophic leave due to the employee's illness or injury may require medical justification, as evidenced by a physician's statement regarding the employee's condition.

SECTION 7: VACATION
A. All Mid-Management and Confidential employees who have passed the employee probationary period, as defined in Personnel Rules and Regulations Section 6.01, shall receive 80 hours of vacation with pay each year.

B. All Mid-Management and Confidential employees who have at least three years of continuous service shall be entitled to eight additional hours of vacation for each year of full-time continuous service in excess of three years. The vacation accrual schedule is as follows:

Years of
Service
Vacation Hours
Earned
Vacation Hours Accrued per
Biweekly Pay Period Annual Vacation Hours Maximum Accrual 1 80 3.0769 80 160
2 80 3.0769 80 160
3 80 3.0769 80 160
4 88 3.3846 88 200
5 96 3.6923 96 200
6 104 4.0000 104 200
7 112 4.3044 112 200
8 120 4.6154 120 200
9 128 4.9231 128 240
10 136 5.2308 136 240
11 144 5.5385 144 240
12 152 5.8462 152 240
13 160 6.1538 160 240
C. Employees who have authorized leaves of absence without pay shall not accumulate vacation credits or pay during such leaves.

D. Employees are encouraged to use vacation time, and the City will make reasonable efforts to allow employees to do so. Employees credited with vacation in excess of the maximum accrual are expected to use a portion of the excess each year, in addition to other vacation, until the bank is reduced to the maximum.

The City recognizes that long-term employees may have substantially more accrued leave and may need longer to reach the maximum. This section is intended to balance the employee's personal interests with the City's financial concerns; progress toward the maximum accrual may be deemed a success.

E. Vacation leave shall not be approved until earned unless prior special arrangements have been made with the City Manager. Vacation must be requested before the leave begins and is subject to prior approval by the Department Head or designee after consideration of workload and staffing, including previously approved vacations, sick leave, and vacancies.

F. An employee who has completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired before July 1, 2026 may receive compensation for up to 240 hours per fiscal year, in no more than two payments; and (2) employees hired on or after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

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SECTION 8: HOLIDAYS
A. All employees incumbent in position classifications listed in Section 20 shall be granted the following holidays with pay:

Holiday Date
New Year's Day January 1
Martin Luther King Jr. Day Third Monday in January
Presidents' Day Third Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Veterans Day November 11
Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Calendar day following Thanksgiving Day Christmas Eve December 24
Christmas Day December 25
Two floating holidays At employee's discretion; must be used during fiscal year B. Holiday Closures. The City Manager may designate up to five specific workdays in each calendar year between Christmas Day and New Year's Day during which employees may be required to take time off, charged to leave without pay, accumulated compensatory time, vacation, floating holidays, or a combination selected by the employee. The days must be consecutive for the employee but may differ among employees.

Employees without sufficient accumulated leave may request and will be granted an advance of vacation sufficient to cover the balance, to be recovered with the next vacation accruals earned by the employee.

Time off under this provision shall not be deemed a layoff.

C. Vacation Election. When a City-paid holiday falls on a full-time employee's regularly scheduled day off, the employee may elect in writing to accrue vacation in the amount of a full regular shift.

SECTION 9: RETIREMENT SYSTEM
A. The retirement program provided by the City shall consist of a pooled California Public Employees' Retirement System (CalPERS) plan that includes Section 20042 (one-year final compensation), Section 20965 (credit for unused sick leave), and Section 21024 (military service credit).

B. Mid-Management and Confidential employees shall pay the full 7% employee CalPERS contribution from compensation earnable.

C. Effective November 1, 1995, the City shall include CalPERS Section 21354, 2% at age 55 for miscellaneous members, except for new employees/members hired on or after January 1, 2013 who are subject to subsection D below.

D. New employees/members hired on or after January 1, 2013, as defined by the Public Employees' Pension Reform Act (PEPRA), will be hired at the retirement formula required by PEPRA and other applicable legislation.

SECTION 10: PROVISIONAL APPOINTMENTS
A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee must perform the duties and assume the responsibilities of the higher classification for 80 consecutive working hours. Thereafter, the employee shall be paid at the step in the new position's salary range that is next higher than the salary received before the provisional appointment. The additional pay will be retroactive to the start date of the higher-classification assignment.

CITY OF SEAL BEACH | MMCEA MOU

B. When necessary and in the City's best interest, the City Manager may provisionally assign an employee to a higher level of duty and responsibility not otherwise part of an adopted classification. The employee must perform the higher-level duties for 80 consecutive working hours. Thereafter, the employee shall receive 5% additional compensation retroactive to the first day of the assignment, provided the assignment was authorized by the City Manager.

SECTION 11: LONGEVITY BONUS
Employees who have achieved 10 years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the 10th anniversary of employment. Sworn police personnel are exempt from this section.

Employees who have achieved 20 years of uninterrupted employment with the City shall receive an additional 2.5% increase in base salary, above the previously described 5% increase at 10 years, effective on the 20th anniversary of employment.

SECTION 12: AUTOMOBILES AND MILEAGE
A. Employees covered by this Agreement who use privately owned automobiles for City business on a nonregular basis shall be reimbursed at the mileage rate established by the Internal Revenue Service.

B. The Deputy Director of Public Works / Maintenance & Utilities will have use of a City vehicle.

SECTION 13: JURY DUTY
See Personnel Rules and Regulations (Resolution 5446), Section 10.06(C), for rules on jury duty.

SECTION 14: ADMINISTRATIVE LEAVE
Effective the first payroll period in July 2026, and every July 1 thereafter:

A. Mid-Management and Confidential position classifications, unless otherwise specified, shall be entitled to 50 hours of administrative leave each fiscal year.

B. Administrative leave may not be carried forward to succeeding years and may not be converted to cash.

SECTION 15: LIMITATIONS
A. No employee who is eligible to receive Workers' Compensation is eligible to receive overlapping benefits, except life insurance, stated in this MOU.

B. The City shall not be required to make monthly premium payments for any insurance benefit listed in this MOU, or pay uniform allowance, supplemental pay of any type, or any bonus, for an employee who has been absent without authorization during an entire calendar month or is on leave of absence without pay.

SECTION 16: DEFERRED COMPENSATION
The City shall contribute the equivalent of 3.5% of base salary per payroll period into a deferred compensation program for each employee in the Mid-Management and Confidential position classifications.

SECTION 17: BILINGUAL COMPENSATION
A. Upon the recommendation of a Department Director, the City Manager may award bilingual compensation of $52.50 per payroll period to employees in positions determined to require bilingual skills.

B. The City Manager shall require competency testing to certify an employee's proficiency in the required language. Certification is a condition precedent to qualifying for bilingual pay.

CITY OF SEAL BEACH | MMCEA MOU

SECTION 18: HEALTH WELLNESS PROGRAM
The City shall reimburse an employee, as a medical benefit, for actual documented expenses for medical maintenance examinations or participation in wellness programs, in an amount not to exceed $500 per fiscal year, subject to the City's normal reimbursement processes and requirements for such expenses.

Reimbursable expenses include, but are not limited to, out-of-pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight-loss, smoking-cessation, fitness, or similar programs, or membership in a health or fitness club. Reimbursements are subject to review and approval by the City Manager or designee.

SECTION 19: WORK SCHEDULE
A. The City shall implement a 4/10 work schedule as a pilot program beginning on a date designated by the City. During the pilot program, City Hall shall be open to the public Monday through Thursday from 7:30 a.m. to 5:30 p.m. and shall be closed to the public on Fridays.

B. The City Council may discontinue the pilot program at any time. Unless discontinued earlier, the pilot program shall automatically expire at the end of the day immediately preceding the six-month anniversary of the implementation date. Any continuation or renewal of the 4/10 work schedule beyond the pilot period shall require City Council action.

C. Department Heads shall retain discretion to assign employee schedules and staffing levels as necessary to maintain operational needs and ensure adequate service to the public.

SECTION 20: SALARIES
A. Mid-Management position classifications:

Grade Job Classification
52 Deputy Director of Public Works / City Engineer
51 Deputy Director of Finance
46 Deputy Director of Community Services
42 Senior Engineer
40 Deputy Director of Public Works / Maintenance & Utilities 38 Building Official
36 Human Resources Manager
36 IT Manager
36 34
Planning Manager
Public Works Superintendent
30 Senior Planner
26 Financial Analyst
26 Management Analyst
25 Accountant
16 Deputy City Clerk
Confidential classifications: Grade 20 - Human Resources Specialist; Grade 10 - Executive Assistant – To The CM.

B. The parties agree to meet and confer no later than November 1, 2026 regarding implementation of the compensation study. The purpose of the meet and confer is to explore ways to bring positions up the market median identified in the LCW Total Compensation Survey, taking into consideration operational needs and budgetary constraints. Any salary changes for bargaining-unit positions resulting from this meet-and-confer process shall be made only by mutual agreement.

CITY OF SEAL BEACH | MMCEA MOU

C. The salary schedule for each affected position classification is determined and established upon adoption by the City Council. Effective the first full pay period starting on or after July 1, 2026, employees shall receive a 3% cost-of-living adjustment.

D. Effective the first full pay period starting on or after July 1, 2027, employees shall receive a 2.5% cost-ofliving adjustment.

E. Effective the first full pay period starting on or after July 1, 2028, employees shall receive a cost-of-living adjustment equal to the percentage change in the Los Angeles-Long Beach-Anaheim All Urban Consumers Index (CPI-U), not seasonally adjusted, for the 12 months ending in April 2028 (April 2027 through April 2028), with a minimum adjustment of 1% and a maximum adjustment of 3%.

F. Wage increases provided under this Agreement shall be made retroactive to the first full pay period starting on or after July 1, 2026, provided the Agreement is ratified by both parties and approved by the City Council.

SECTION 21: TUITION REIMBURSEMENT
A. Higher Education Degree Programs - Employees attending accredited community colleges, universities and trade schools for the purpose of obtaining an eligible higher education degree may apply for reimbursement of tuition, books, student fees, and parking. Tuition reimbursement is capped at the 2026 California State University (CSU) tuition rates, not to exceed $3,908 per semester and $7,816 per fiscal year.

B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

C. Minimum Service Requirement - An employee must have completed at least one (1) year of continuous employment with the City before becoming eligible to receive tuition assistance. Eligibility shall be determined as of the date the employee’s course begins.

D. Eligible Degree Programs - Tuition assistance may be approved for coursework leading to an associate, bachelor’s, or master’s degree. Tuition assistance shall not be available for coursework leading to a doctoral, or doctorate degree.

E. Benefit to the City - To be eligible for tuition assistance, the coursework or degree program must be reasonably related to the employee’s current position, current department, or a position or function within another City department, and must provide a demonstrable benefit to the City. The City shall have sole discretion to determine whether a proposed course or degree program meets this requirement; however, such discretion will not be exercised in an arbitrary or discriminatory manner. Approval of a course or degree program shall not guarantee promotion, reclassification, transfer, or appointment to another City position.

F. Tuition Reimbursement Repayment - As a condition of receiving tuition reimbursement, employees hired on or after the effective date of this Agreement who voluntarily separate from City employment shall reimburse the City for a portion of the tuition reimbursement received as follows:

1. Employees who voluntarily terminate employment within one (1) year from the date tuition reimbursement is paid by the City shall reimburse the City seventy-five percent (75%) of the amount reimbursed.

2. Employees who voluntarily terminate employment more than one (1) year, but within two (2) years, from the date tuition reimbursement is paid by the City shall reimburse the City fifty percent (50%) of the amount reimbursed.

3. No reimbursement to the City shall be required for employees who voluntarily terminate employment more than two (2) years after the date tuition reimbursement is paid.

CITY OF SEAL BEACH | MMCEA MOU

4. This repayment obligation shall not apply to employees who retire from the City through CalPERS, are separated due to layoff, disability retirement, death, or are otherwise involuntarily separated from employment.

5. Employees employed by the City prior to the effective date of this Agreement shall be grandfathered and shall not be subject to the tuition reimbursement repayment provisions contained herein.

SECTION 22: OTHER APPLICABLE RULES
The City agrees to abide by all otherwise applicable state and federal laws, including but not limited to the Family and Medical Leave Act, Americans with Disabilities Act, California Family Rights Act, Fair Labor Standards Act, and the meet-and-confer obligations of the Meyers-Milias-Brown Act, as well as the City's Personnel Rules. Such laws and rules are incorporated herein.

SECTION 23: LAYOFFS
The City shall give the Association 45 days' prior notice before the effective date of any layoffs.

SECTION 24: EXISTING CONDITIONS OF EMPLOYMENT
The parties agree and understand that all existing benefits and terms and conditions of employment within the lawful scope of the meet-and-confer process will not be reduced and shall remain in full force and effect during the term of this MOU.

SECTION 25: ME-TOO CLAUSE
If, during the term of this Agreement, any represented bargaining unit receives an annual across-the-board wage increase, as a percentage of pay, greater than that received by the Association, the greater increase shall immediately be extended to Association members.

SECTION 26: WORKING GROUP
The parties agree to form a working group to discuss drafting new grievance procedures that, if adopted by the City Council, will amend the City's current Personnel Rules.

SECTION 27: TERM
This Memorandum of Understanding shall remain in full force and effect from July 1, 2026 through June 30, 2029.

CITY OF SEAL BEACH | MMCEA MOU

SECTION 28: RATIFICATION
This MOU is subject to approval and adoption by the City Council and ratification by the required number of duly authorized representatives of the Association. Following approval and adoption, the MOU shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council.

IN WITNESS WHEREOF, the parties have caused this Memorandum of Understanding to be executed this _____ day of __________ 2026.

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

CITY OF SEAL BEACH

MID-MANAGEMENT AND

CONFIDENTIAL EMPLOYEES ASSOCIATION

MEMORANDUM OF UNDERSTANDING
July 1, 2026 - June 30, 2029

REDLINE
Prepared August 21, 2026
CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

TABLE OF CONTENTS
1 Recognition
2 Non-Discrimination
3 Health Insurance Coverage; Life & Disability Insurance 4 Retiree Health Insurance
5 Sick Leave
6 Leaves of Absence
7 Vacation
8 Holidays
9 Retirement System
10 Provisional Appointments
11 Seniority Longevity Bonus
12 Automobiles and Mileage
13 Jury Duty
14 Administrative Leave
15 Limitations
16 Deferred Compensation
17 Bilingual Compensation
18 Health Wellness Program
19 Work Schedule
20 Salaries
21 Tuition Reimbursement
22 Other Applicable Rules
23 Layoffs
24 Existing Conditions of Employment
25 Me-Too Clause
26 Working Group
27 Term
28 Ratification
CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF SEAL BEACH AND THE MID-MANAGEMENT AND CONFIDENTIAL EMPLOYEES

ASSOCIATION
SECTION 1: RECOGNITION
The City of Seal Beach (hereafter "City") has recognized the Seal Beach Mid-Management and Confidential Employees Association (hereafter "Association") as the exclusive representative of the employees in the MidManagement and Confidential bargaining unit.

SECTION 2: NON-DISCRIMINATION
A. The parties mutually recognize and agree to protect the rights of all employees to join and/or participate in protected Association activities in accordance with the Employee Relations Ordinance and Government Code sections 3500 and 3511 and agree not to retaliate against employees.

B. The Association and the City agree not to discriminate against any employee or potential employee on the basis of race, sex, religion, color, national origin, ancestry, age, disability, gender, or sexual orientation.

SECTION 3: HEALTH INSURANCE COVERAGE; LIFE & DISABILITY INSURANCE A. Health Insurance Coverage

1. The City shall provide for full-time employees and eligible retired employees a group hospital, medical and dental insurance plan.

2. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution. The City shall contribute an equal amount toward the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees.

3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the employees during negotiations. For employees participating in the City's full flex cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the full flex cafeteria plan. Beginning January 1, 2025, the monthly flex dollar allowance shall be: Each eligible employee shall receive the monthly flex dollar allowance applicable to the employee's coverage tier, as adjusted under subsection 5.

Coverage Level Monthly Allowance
Employee only $1,292.91
Employee plus one dependent $1,997.96
Employee plus two or more dependents $2,583.76

4. A portion of the monthly flex dollar allowance is identified as the City's contribution toward PEMHCA.

Thus, for example, in calendar year 2024 a single employee's monthly flex dollar allowance is $1,292.91; of that amount, $158 has been designated by the City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may be used only in accordance with the terms of the full flex cafeteria plan.

5. Every January 1 during the term of this Agreement, the City shall increase the contribution amounts above by the average percentage increase for basic plans published by CalPERS, which sets health insurance premiums for the coverage year. Effective each January 1 during the term of this Agreement, the monthly flex dollar allowances in effect immediately before that date shall be increased by the average percentage increase for CalPERS basic plans for the applicable coverage year.

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

6. Employees enrolled in the plan are required to pay any premium amounts in excess of the City contribution. Such amounts will be deducted from the affected employee's payroll check on the first two pay periods of each month.

7. Beginning January 2020, the minimum employer contribution for participating in PEMHCA will be adjusted annually to reflect any change in the health care component of the Consumer Price Index. Effective January 1, 2025, the minimum employer contribution is $158 per month per employee/retiree. The City's minimum employer contribution under PEMHCA shall be the amount established by CalPERS for the applicable calendar year.

8. Employees meeting the waiver criteria and electing to waive enrollment in the City's full-flex cafeteria plan are eligible to receive $350 550 per month upon showing proof of medical insurance coverage under an alternative plan. Election forms are available in Human Resources.

9. Part-time, seasonal, provisional and/or hourly employees shall not be eligible for participation in this program.

10. Full-time employees covered by this Agreement who have completed 30 days of uninterrupted service shall be enrolled in the full flex cafeteria plan on the first day of the next succeeding month.

11. Employees who change classification from full-time to part-time, provisional, hourly, or seasonal shall not be eligible for participation in the full-flex cafeteria plan.

12. The City shall not contribute a flex dollar amount for any employee during any month the employee is on leave of absence without pay, or is absent from regular duties without authorization, for a full calendar month. The City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers' Compensation Insurance.

B. Life Insurance

1. All employees incumbent in position classifications listed in Section 18 20 shall receive a $50,000 term life insurance policy paid by the City.

2. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service, with the employee to be enrolled in the program on the first day of the next succeeding month.

C. Income Continuation

1. All employees incumbent in position classifications listed in Section 18 20 shall receive an income continuation policy providing 66.67% of the employee's monthly salary, up to a maximum of $5,000 per month, whichever is less.

2. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service, with the employee to be enrolled in the program on the first day of the next succeeding month.

3. Income continuation shall commence on the 31st day of sickness or other bona fide absence, or upon expiration of sick leave, whichever occurs later, and shall continue while the employee is absent from work for a period up to age 65.

SECTION 4: RETIREE HEALTH INSURANCE
A. Employees covered by this Agreement shall have the option, upon retirement, to continue participation in the City's health insurance program at the employee's expense.

B. Employees in the Mid-Management and Confidential classifications who were hired before January 1, 2008 by the City, and who retire after December 31, 2009 with 20 or more combined years of employment with the City shall, upon retirement, be provided with individual medical insurance coverage. If an employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided at the rate of (a) the average of the two lowest-cost medical care CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

plans offered by CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the retired employee becomes Medicare eligible, the City's contribution will be capped at the rate of (a) the average of the two lowest-cost Medicare supplement plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare supplement plan, whichever is greater.

C. Employees who were hired on or after January 1, 2008 by the City, and who retire from the City, shall be eligible to receive a City contribution not to exceed the PEMHCA minimum employer contribution toward health coverage under CalPERS, as determined by CalPERS from time to time.

D. An employee with a service retirement who is eligible to receive retiree medical insurance under Section 3 4, subsections B and C, may also receive an increase to the medical insurance cap in effect at the time of retirement, not to exceed $175 per month in additional contributions, until Medicare begins at age 65 with lower supplemental insurance rates. This additional contribution to the cap will accommodate increases in medical insurance plans over the term of the employee's retirement.

E. In all cases, the City's contribution for eligible dependent coverage for retirees shall terminate upon the death of the retiree.

F. If an eligible retired employee resides in an area where the medical plans provided by the City are not in effect, the retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution in effect at the time of retirement.

SECTION 5: SICK LEAVE
A. All full-time employees covered by this Agreement shall accrue sick leave at the rate of one day per month (eight hours). The maximum accrual of sick leave shall be 520 hours.

B. Existing sick leave balances that have remained intact and have not been converted to leave time may be utilized by the employee for sick leave purposes only.

C. Upon termination of employment with the City, all compensable leave hours will be paid to the employee at the employee's base rate of pay. Sick leave balances that have not been converted to leave time will be paid upon termination at 25% of the employee's base rate of pay.

D. Employees who are on authorized leaves of absence without pay shall not accrue sick leave during such leaves of absence.

SECTION 6: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay

1. Upon the Department Head's recommendation and approval of the City Manager, an employee may be granted a leave of absence without pay in cases of emergency or where such absence would not be contrary to the best interests of the City, for a period not to exceed 180 working days.

2. Upon written request of the employee, the City Council may grant a leave of absence, with or without pay, for a period not to exceed one year.

3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held when the leave was granted. Failure to report promptly at the leave's expiration and upon receipt of notice to return to duty shall be cause for discharge.

4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except that the employee shall receive the monthly flex dollar allowance and the City, as specifically provided in this Agreement, shall contribute to the employee's disability insurance and life insurance plans for the first 30 days of leave.

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B. Bereavement Leave
The City agrees to provide 40 hours of bereavement leave with pay for a death in the immediate family.

Bereavement leave shall not be charged to or accumulated as sick time or leave time. "Immediate family" is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, stepmother, stepfather, stepchild, foster child, child of domestic partner, legal ward, mother-inlaw, father-in-law, domestic partner-in-law, or dependent relative living with the employee. If five days of the employee's regular work schedule exceeds 40 hours, the employee may take the hours in excess of 40 needed to equal five days without pay, but may use accrued leave for those hours.

C. Military Leave of Absence

1. Military leave shall be granted in accordance with federal and state law. Employees entitled to military leave shall give the Department Head an opportunity, within the limits of military regulations, to determine when such leave shall be taken. Whenever possible, the employee shall notify the Department Head of the leave request 10 working days before the leave begins.

2. In addition to the provisions of state law, the City shall continue to provide eligible employees on military leave the monthly flex dollar allowance under the cafeteria plan, disability and life insurance, and retirement, if applicable, for the first three months of military leave. During that period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance, if applicable.

3. After the first three months of military leave, the employee may continue such benefits at the employee's cost.

D. Pregnancy Disability Leave of Absence

1. An employee who is disabled due to pregnancy shall be granted pregnancy disability leave as provided by California law and the federal Family and Medical Leave Act. The employee may elect to take a lesser period of leave.

2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay.

E. Family Leave
Upon a demonstration of need and subject to the following conditions, an employee may take paid or unpaid leave to care for a newborn infant, whether through birth or adoption, or to care for a seriously ill or injured member of the employee's "immediate family" as defined in Section 5-B 6.B.

1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City.

2. Requests for family leave must be submitted in writing to the employee's supervisor at the earliest possible date preceding the time when the leave is to begin.

3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with state and federal family leave laws.

4. In the event of an extended family leave, the employee may be required to report periodically on the status of the situation giving rise to the leave.

5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager, consistent with state and federal family leave laws.

F. Catastrophic Leave
The purpose of the Catastrophic Leave Pool is to enable full-time employees to receive and donate vacation, administrative leave, and compensatory time off credits on an hour-for-hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or an immediate family member. Sick leave is excluded from this program. The following conditions apply:

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

1. Catastrophic leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident.

2. The leave pool shall be administered by the Finance Department.

3. Employees must be in regular, full-time appointed positions to be eligible to receive catastrophic leave.

4. Employees receiving long-term disability payments are excluded from receiving catastrophic leave under this program.

5. All donations are confidential between the donating employee and the Finance Department.

6. Employees donating to the pool must have 40 hours of paid leave available after making a donation.

7. Donating employees must sign an authorization specifying the employee who will receive the donation.

8. Donations will be subject to applicable tax laws.

9. The availability of catastrophic leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee.

10. Catastrophic leave due to illness or injury of an immediate family member may require medical justification, as evidenced by a physician's statement that the employee's presence is necessary.

11. Catastrophic leave due to the employee's illness or injury may require medical justification, as evidenced by a physician's statement regarding the employee's condition.

SECTION 7: VACATION
A. All Mid-Management and Confidential employees who have passed the employee probationary period, as defined in Personnel Rules and Regulations Section 6.01, shall receive 80 hours of vacation with pay each year.

B. All Mid-Management and Confidential employees who have at least three years of continuous service shall be entitled to eight additional hours of vacation for each year of full-time continuous service in excess of three years. The vacation accrual schedule is as follows:

Years of
Service
Vacation Hours
Earned
Vacation Hours Accrued per
Biweekly Pay Period Annual Vacation Hours Maximum Accrual 1 80 3.0769 80 160
2 80 3.0769 80 160
3 80 3.0769 80 160
4 88 3.3846 88 200
5 96 3.6923 96 200
6 104 4.0000 104 200
7 112 4.3044 112 200
8 120 4.6154 120 200
9 128 4.9231 128 240
10 136 5.2308 136 240
11 144 5.5385 144 240
12 152 5.8462 152 240
13 160 6.1538 160 240
D. C. Employees who have authorized leaves of absence without pay shall not accumulate vacation credits or pay during such leaves.

E. D. Employees are encouraged to use vacation time, and the City will make reasonable efforts to allow employees to do so. Employees credited with vacation in excess of the maximum accrual are expected to use a portion of the excess each year, in addition to other vacation, until the bank is reduced to the maximum.

The City recognizes that long-term employees may have substantially more accrued leave and may need CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

longer to reach the maximum. This section is intended to balance the employee's personal interests with the City's financial concerns; progress toward the maximum accrual may be deemed a success.

F. E. Vacation leave shall not be approved until earned unless prior special arrangements have been made with the City Manager. Vacation must be requested before the leave begins and is subject to prior approval by the Department Head or designee after consideration of workload and staffing, including previously approved vacations, sick leave, and vacancies.

G. Not more than once in each fiscal year, an employee may, upon timely written request, receive cash compensation for up to 120 hours of accrued and unused vacation time, subject to the City's normal accrual and cash-out policies and procedures. Beginning with the 2023-2024 fiscal year, not more than twice in each fiscal year, an employee who has completed at least one year of continuous service shall, upon request, receive compensation for up to 120 hours of accrued and unused vacation time. The parties agree to reopen negotiations during 2024 to replace the current cash-out procedure with an irrevocable-election model.

G. F. An employee who has completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired before July 1, 2026 may receive compensation for up to 240 hours per fiscal year, in no more than two payments; and (2) employees hired on or after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

SECTION 8: HOLIDAYS
A. All employees incumbent in position classifications listed in Section 18 20 shall be granted the following holidays with pay:

Holiday Date
New Year's Day January 1
Martin Luther King Jr. Day Third Monday in January
Presidents' Day Third Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Veterans Day November 11
Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Calendar day following Thanksgiving Day Christmas Eve December 24
Christmas Day December 25
Two floating holidays At employee's discretion; must be used during fiscal year B. Holiday Closures. The City Manager may designate up to five specific workdays in each calendar year between Christmas Day and New Year's Day during which employees may be required to take time off, charged to leave without pay, accumulated compensatory time, vacation, floating holidays, or a combination selected by the employee. The days must be consecutive for the employee but may differ among employees.

Employees without sufficient accumulated leave may request and will be granted an advance of vacation sufficient to cover the balance, to be recovered with the next vacation accruals earned by the employee.

Time off under this provision shall not be deemed a layoff.

C. Vacation Election. When a City-paid holiday falls on a full-time employee's regularly scheduled day off, the employee may elect in writing to accrue vacation in the amount of a full regular shift or receive an equivalent amount as holiday pay.

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

SECTION 9: RETIREMENT SYSTEM
A. The retirement program provided by the City shall consist of a pooled California Public Employees' Retirement System (CalPERS) plan that includes Section 20042 (one-year final compensation), Section 20965 (credit for unused sick leave), and Section 21024 (military service credit).

B. Mid-Management and Confidential employees shall pay the full 7% employee CalPERS contribution from compensation earnable.

C. Effective November 1, 1995, the City shall include CalPERS Section 21354, 2% at age 55 for miscellaneous members, except for new employees/members hired on or after January 1, 2013 who are subject to subsection D below.

D. New employees/members hired on or after January 1, 2013, as defined by the Public Employees' Pension Reform Act (PEPRA), will be hired at the retirement formula required by PEPRA and other applicable legislation.

SECTION 10: PROVISIONAL APPOINTMENTS
A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee must perform the duties and assume the responsibilities of the higher classification for 80 consecutive working hours. Thereafter, the employee shall be paid at the step in the new position's salary range that is next higher than the salary received before the provisional appointment. The additional pay will be retroactive to the start date of the higher-classification assignment.

B. When necessary and in the City's best interest, the City Manager may provisionally assign an employee to a higher level of duty and responsibility not otherwise part of an adopted classification. The employee must perform the higher-level duties for 80 consecutive working hours. Thereafter, the employee shall receive 5% additional compensation retroactive to the first day of the assignment, provided the assignment was authorized by the City Manager.

SECTION 11: SENIORITY LONGEVITY BONUS
Employees who have achieved 10 years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the 10th anniversary of employment. Sworn police personnel are exempt from this section.

Employees who have achieved 20 years of uninterrupted employment with the City shall receive an additional 2.5% increase in base salary, above the previously described 5% increase at 10 years, effective on the 20th anniversary of employment.

SECTION 12: AUTOMOBILES AND MILEAGE
A. Employees covered by this Agreement who use privately owned automobiles for City business on a nonregular basis shall be reimbursed at the mileage rate established by the Internal Revenue Service.

B. The Deputy Director of Public Works / Maintenance & Utilities will have use of a City vehicle.

SECTION 13: JURY DUTY
See Personnel Rules and Regulations (Resolution 5446), Section 10.06(C), for rules on jury duty.

SECTION 14: ADMINISTRATIVE LEAVE
Effective the first payroll period in July 2026, and every July 1 thereafter:

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

A. Mid-Management and Confidential position classifications, unless otherwise specified, shall be entitled to 40 50 hours of administrative leave each fiscal year.

B. Administrative leave may not be carried forward to succeeding years and may not be converted to cash.

SECTION 15: LIMITATIONS
A. No employee who is eligible to receive Workers' Compensation is eligible to receive overlapping benefits, except life insurance, stated in this MOU.

B. The City shall not be required to make monthly premium payments for any insurance benefit listed in this MOU, or pay uniform allowance, supplemental pay of any type, or any bonus, for an employee who has been absent without authorization during an entire calendar month or is on leave of absence without pay.

SECTION 16: DEFERRED COMPENSATION
The City shall contribute the equivalent of 3.5% of base salary per payroll period into a deferred compensation program for each employee in the Mid-Management and Confidential position classifications.

SECTION 17: BILINGUAL COMPENSATION
A. Upon the recommendation of a Department Director, the City Manager may award bilingual compensation of $52.50 per payroll period to employees in positions determined to require bilingual skills.

B. The City Manager shall require competency testing to certify an employee's proficiency in the required language. Certification is a condition precedent to qualifying for bilingual pay.

SECTION 18: HEALTH WELLNESS PROGRAM
The City shall reimburse an employee, as a medical benefit, for actual documented expenses for medical maintenance examinations or participation in wellness programs, in an amount not to exceed $500 per fiscal year, subject to the City's normal reimbursement processes and requirements such expenses for such expenses. Reimbursable expenses include, but are not limited to, out-of-pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight-loss, smoking-cessation, fitness, or similar programs, or membership in a health or fitness club. Reimbursements are subject to review and approval by the City Manager or designee.

SECTION 19: WORK SCHEDULE
At the discretion of the City Manager, work schedules may be altered as needed to meet the service-demand levels of the residents of the City of Seal Beach. During 2024, the parties shall establish a 4/10 working group to explore the merits of a 4/10 work schedule.

A. The City shall implement a 4/10 work schedule as a pilot program beginning on a date designated by the City. During the pilot program, City Hall shall be open to the public Monday through Thursday from 7:30 a.m. to 5:30 p.m. and shall be closed to the public on Fridays.

B. The City Council may discontinue the pilot program at any time. Unless discontinued earlier, the pilot program shall automatically expire at the end of the day immediately preceding the six-month anniversary of the implementation date. Any continuation or renewal of the 4/10 work schedule beyond the pilot period shall require City Council action.

C. Department Heads shall retain discretion to assign employee schedules and staffing levels as necessary to maintain operational needs and ensure adequate service to the public.

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

SECTION 20: SALARIES
A. Mid-Management position classifications:

Grade Job Classification
47 52 Deputy Director of Public Works/City Engineer Deputy Director of Public Works / City Engineer 36 51 Finance Manager Deputy Director of Finance
36 46 Recreation Manager Deputy Director of Community Services 36 42 Associate Engineer Senior Engineer
39 40 Deputy Director of Public Works / Maintenance & Utilities 38 Building Official
36 Human Resources Manager
36 IT Manager
36 34
Planning Manager
Public Works Superintendent
36 30 Senior Planner
26 Financial Analyst
26 Management Analyst
25 Accountant
20 Human Resources Specialist
18 16 Deputy City Clerk
Confidential classification: Confidential classifications: Grade 20 - Human Resources Specialist; City Manager's Executive Assistant (Confidential) Grade 10 - Executive Assistant – To The CM.

The City will conduct a class and compensation study for MMCEA classifications, to be completed in or before April 2026. The City shall have no obligation to take any action regarding employee compensation or classification due to the information contained in the classification and compensation study.

B. The parties agree to meet and confer no later than November 1, 2026 regarding implementation of the compensation study. The purpose of the meet and confer is to explore ways to bring positions up the market median identified in the LCW Total Compensation Survey, taking into consideration operational needs and budgetary constraints. Any salary changes for bargaining-unit positions resulting from this meet-and-confer process shall be made only by mutual agreement.

The salary schedule for each affected position classification is established upon adoption by the City Council. Effective the first pay period starting on or after July 1, 2025, employees shall receive a 2.5% costof-living adjustment. The City shall make a one-time, non-PERSable lump-sum payment of $2,000 with the payroll for the pay period starting after City Council ratification of the 2025 MOU to employees employed by the City on the payment date.

C. The salary schedule for each affected position classification is determined and established upon adoption by the City Council. Effective the first full pay period starting on or after July 1, 2026, employees shall receive a 3% cost-of-living adjustment.

D. Effective the first full pay period starting on or after July 1, 2027, employees shall receive a 2.5% costof-living adjustment.

E. Effective the first full pay period starting on or after July 1, 2028, employees shall receive a cost-of-living adjustment equal to the percentage change in the Los Angeles-Long Beach-Anaheim All Urban Consumers Index (CPI-U), not seasonally adjusted, for the 12 months ending in April 2028 (April 2027 through April 2028), with a minimum adjustment of 1% and a maximum adjustment of 3%.

F. Wage increases provided under this Agreement shall be made retroactive to the first full pay period starting on or after July 1, 2026, provided the Agreement is ratified by both parties and approved by the City Council.

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

SECTION 21: TUITION REIMBURSEMENT
A. Higher Education Degree Programs. Mid-Management and Confidential employees attending accredited community colleges, universities, and trade schools for the purpose of obtaining a highereducation degree may apply for reimbursement of tuition, books, student fees, and parking.

Reimbursement is capped each calendar year at the tuition rate of the California State University system for up to two semesters of full-time undergraduate enrollment.

B. Reimbursement is contingent upon successful completion of the course. Successful completion means a grade of C or better for undergraduate courses and B or better for graduate courses. All claims require prior approval and are subject to verification and approval by the City Manager.

A. Higher Education Degree Programs - Employees attending accredited community colleges, universities and trade schools for the purpose of obtaining an eligible higher education degree may apply for reimbursement of tuition, books, student fees, and parking. Tuition reimbursement is capped at the 2026 California State University (CSU) tuition rates, not to exceed $3,908 per semester and $7,816 per fiscal year.

B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

C. Minimum Service Requirement - An employee must have completed at least one (1) year of continuous employment with the City before becoming eligible to receive tuition assistance. Eligibility shall be determined as of the date the employee’s course begins.

D. Eligible Degree Programs - Tuition assistance may be approved for coursework leading to an associate, bachelor’s, or master’s degree. Tuition assistance shall not be available for coursework leading to a doctoral, or doctorate degree.

E. Benefit to the City - To be eligible for tuition assistance, the coursework or degree program must be reasonably related to the employee’s current position, current department, or a position or function within another City department, and must provide a demonstrable benefit to the City. The City shall have sole discretion to determine whether a proposed course or degree program meets this requirement; however, such discretion will not be exercised in an arbitrary or discriminatory manner. Approval of a course or degree program shall not guarantee promotion, reclassification, transfer, or appointment to another City position.

F. Tuition Reimbursement Repayment - As a condition of receiving tuition reimbursement, employees hired on or after the effective date of this Agreement who voluntarily separate from City employment shall reimburse the City for a portion of the tuition reimbursement received as follows:

1. Employees who voluntarily terminate employment within one (1) year from the date tuition reimbursement is paid by the City shall reimburse the City seventy-five percent (75%) of the amount reimbursed.

2. Employees who voluntarily terminate employment more than one (1) year, but within two (2) years, from the date tuition reimbursement is paid by the City shall reimburse the City fifty percent (50%) of the amount reimbursed.

3. No reimbursement to the City shall be required for employees who voluntarily terminate employment more than two (2) years after the date tuition reimbursement is paid.

4. This repayment obligation shall not apply to employees who retire from the City through CalPERS, are separated due to layoff, disability retirement, death, or are otherwise involuntarily separated from employment.

CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

5. Employees employed by the City prior to the effective date of this Agreement shall be grandfathered and shall not be subject to the tuition reimbursement repayment provisions contained herein.

SECTION 22: OTHER APPLICABLE RULES
The City agrees to abide by all otherwise applicable state and federal laws, including but not limited to the Family and Medical Leave Act, Americans with Disabilities Act, California Family Rights Act, Fair Labor Standards Act, and the meet-and-confer obligations of the Meyers-Milias-Brown Act, as well as the City's Personnel Rules. Such laws and rules are incorporated herein.

SECTION 23: LAYOFFS
The City shall give the Association 45 days' prior notice before the effective date of any layoffs.

SECTION 24: EXISTING CONDITIONS OF EMPLOYMENT
The parties agree and understand that all existing benefits and terms and conditions of employment within the lawful scope of the meet-and-confer process will not be reduced and shall remain in full force and effect during the term of this MOU.

SECTION 25: ME-TOO CLAUSE
If, during the term of this Agreement, any represented bargaining unit receives an annual across-the-board wage increase, as a percentage of pay, greater than that received by the Association, the greater increase shall immediately be extended to Association members.

SECTION 26: WORKING GROUP
The parties agree to form a working group to discuss drafting new grievance procedures that, if adopted by the City Council, will amend the City's current Personnel Rules.

SECTION 27: TERM
This Memorandum of Understanding shall remain in full force and effect from July 1, 2025 through June 30, 2026 2026 through June 30, 2029.

SECTION 28: RATIFICATION
This MOU is subject to approval and adoption by the City Council and ratification by the required number of duly authorized representatives of the Association. Following approval and adoption, the MOU shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council.

IN WITNESS WHEREOF, the parties have caused this Memorandum of Understanding to be executed this 23rd day of June 2025 _____ day of __________ 2026.

CITY OF SEAL BEACH
__________________________________
Patrick Gallegos, City Manager Date: __________________ CITY OF SEAL BEACH | MMCEA MOU | WORKING REDLINE

MID-MANAGEMENT AND CONFIDENTIAL

EMPLOYEES ASSOCIATION
__________________________________
Association President Date: __________________
SBMSMA MOU 2026-2029
1 Seal Beach Marine Safety Management
Association (SBMSMA)

MEMORANDUM OF UNDERSTANDING
Resolution 7817
ADOPTED: September 14, 2026
EXPIRES: June 30, 2029
Term: July 1, 2026 - June 30, 2029
SBMSMA MOU 2026-2029
2 TABLE OF CONTENTS
SECTION 1: RECOGNITION
SECTION 2: CITY RIGHTS
SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE SECTION 4: RETIREMENT HEALTH INSURANCE
SECTION 5: SICK LEAVE
SECTION 6: VACATION TIME
SECTION 7: HOLIDAYS
SECTION 8: RETIREMENT
SECTION 9: OVERTIME AND CALL OUT PAY
SECTION 10: COMPENSATORY TIME OFF
SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
SECTION 12: LONGEVITY PAY
SECTION 13: AUTOMOBILES AND MILEAGE
SECTION 14: ADMINISTRATIVE LEAVE
SECTION 15: LIMITATIONS
SECTION 16: DEFERRED COMPENSATION
SECTION 17: BILINGUAL COMPENSATION
SECTION 18: CERTIFICATION PAY
SECTION 19: WORK SCHEDULE
SECTION 20: TUITION REIMBURSEMENT
SECTION 21: COMPENSATION PLAN
SECTION 22: LEAVES OF ABSENCE
SECTION 23: HEALTH WELLNESS PROGRAM
SECTION 24: MISCELLANEOUS
SECTION 25: TERM
SECTION 26: APPEALS
SECTION 27: REOPENER
SECTION 28: RATIFICATION

EXHIBIT A - SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION PHYSICAL FITNESS PROGRAM SBMSMA MOU 2026-2029
3 MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF SEAL BEACH

MARINE SAFETY MANAGEMENT ASSOCIATION
SECTION 1: RECOGNITION
A. Pursuant to the provisions of Employee-Employer Relations Resolution 5242, as amended, the City of Seal Beach (hereinafter called the "City" and/or "Employer" and/or "Management" interchangeably) has recognized for the purpose of this Memorandum of Understanding (MOU), the Seal Beach Marine Safety Management Association (SBMSMA) an association of employees of the City of Seal Beach, hereinafter referred to as "Association".

B. The City recognizes the Association as the representative of the employees in the classification and assignments set forth in Section 21.G below for the purpose of meeting its obligations under this MOU, the Meyers-Milias-Brown Act, Government Code Section 3500 et seq., when City rules, regulations, or laws affecting wages, hours and/or other terms and conditions of employment are amended or changed.

C. The City agrees that the recognized representatives of Association not to exceed 3 in number shall be entitled to meet and confer with City during said recognized representatives' normal working hours without suffering any loss in pay while absent from the duties for such purpose. City also agrees that such representatives may utilize a total of not more than 3 hours per year without suffering any loss in pay for such absence for the purpose of meeting with employees who are members of the Association and/or other officers of the Association.

D. City recognizes Association's right to appoint or elect representatives to meet and confer with City's management representatives on salaries, wages, and terms and conditions of employment. Association agrees to notify City in writing as to the identity of the representatives and of subsequent appointments, if any. Association and City agree that employees appointed or elected as Association representatives shall be required to work full time.

E. It is recognized and agreed that no Association business and/or meetings will be conducted and/or attended by employees of City during their respective hours of duty and work unless specified herein.

F. Representatives and/or officers of Association shall not interrupt the work of any employee of City at any time to conduct business or other matters connected with Association without prior consent of Management.

G. This document supersedes all prior Memoranda of Understanding and verbal agreements between the parties hereto.

SECTION 2: CITY RIGHTS
A. Rights/Responsibilities - This City reserves, retains and is vested with solely and exclusively, all rights of management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include but not be limited to, the following rights:

1. To manage the City generally and to determine the issues of policy.

2. To determine the existence or nonexistence of facts which are the basis of the management decision(s).

3. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services.

4. To determine the nature, manner, means and technology and extent of services to be provided to the public.

5. To determine methods of financing.

SBMSMA MOU 2026-2029
4 6. To determine types of equipment or technology to be used.

7. To determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted.

8. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City.

9. To assign work to and schedule employees in accordance with any requirements set forth in this MOU, and to establish and change work schedules and assignments upon reasonable notice insofar as such changes do not conflict with this MOU.

10. To layoff employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive.

11. To establish and modify productivity and performance programs and standards.

12. To discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause.

13. To determine minimum qualifications, skills abilities, knowledge, selection procedures and standards, job classifications and to reclassify employees in accordance with this MOU and applicable resolutions and codes of the City.

14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the MOU and applicable resolutions and codes of the City.

15. To determine policies, procedures and standards for selection, training and promotion of employees in accordance with this MOU and applicable resolutions and codes of the City.

16. To establish reasonable employee performance standards including but not limited to, quality and quantity standards and to require compliance therewith.

17. To maintain order and efficiency in its facilities and operation.

18. To establish and promulgate and/or modify rules and regulations to maintain order and safety and which are not in contravention with the Agreement.

19. To restrict the activity of an employee organization on municipal property and on municipal time except as set forth in this MOU.

20. To take any and all necessary action to carry out the mission of the City in emergencies.

B. Where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of City Rights shall impact the wages, hours and other terms and conditions of employment of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU.

SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE

INSURANCE
A. Health Insurance Coverage

1. The City shall provide for full-time employees and eligible retired employees a group hospital, medical and dental insurance plan.

2. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution. The City shall contribute an equal amount toward the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees.

SBMSMA MOU 2026-2029
5 3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the employees during negotiations. For employees participating in the City's full flex cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the full flex cafeteria plan. Each eligible employee shall receive the monthly flex dollar allowance applicable to the employee's coverage tier, as adjusted under subsection 5.

4. A portion of the monthly flex dollar allowance is identified as the City's contribution toward PEMHCA.

The monthly flex dollar allowance may be used only in accordance with the terms of the full flex cafeteria plan.

5. Effective each January 1 during the term of this Agreement, the monthly flex dollar allowances in effect immediately before that date shall be increased by the average percentage increase for CalPERS basic plans for the applicable coverage year.

6. Employees enrolled in the plan are required to pay any premium amounts in excess of the City contribution. Such amounts will be deducted from the affected employee's payroll check on the first two pay periods of each month.

7. The City's minimum employer contribution under PEMHCA shall be the amount established by CalPERS for the applicable calendar year.

8. Employees meeting the waiver criteria and electing to waive enrollment in the City's full-flex cafeteria plan are eligible to receive $ 550 per month upon showing proof of medical insurance coverage under an alternative plan.

9. Part-time, seasonal, provisional and/or hourly employees shall not be eligible for participation in this program.

10. Full-time employees covered by this Agreement who have completed 30 days of uninterrupted service shall be enrolled in the full flex cafeteria plan on the first day of the next succeeding month.

11. Employees who change classification from full-time to part-time, provisional, hourly, or seasonal shall not be eligible for participation in the full-flex cafeteria plan.

12. The City shall not contribute a flex dollar amount for any employee during any month the employee is on leave of absence without pay, or is absent from regular duties without authorization, for a full calendar month. The City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers' Compensation Insurance.

B. Life Insurance
Employees covered by this agreement shall receive a $50,000 term life insurance policy paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month.

C. Income Continuation
Employees covered by this Agreement shall receive a policy to provide for income continuation of 66.67% of the employee's monthly salary, up to a maximum of $5,000 per month, whichever is lesser, paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. Said income continuation shall commence on the 3lst day of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while the employee is absent from work for a period of up to age 65.

D. Annual Dermatological Screening
The City will provide employees with one (1) annual dermatological (skin cancer) screening at no cost to employees. Screening will be provided by one of the three dermatological providers identified by the City, including Alamitos Dermatology, and must be scheduled by the employee. Any treatment deemed necessary following the exam shall be scheduled by the employee through the employee's provider of choice using the employee's SBMSMA MOU 2026-2029
6 insurance. All medical billing for the screening services will be forwarded for payment to the City of Seal Beach by the selected City-approved dermatological provider.

SECTION 4: RETIREMENT HEALTH INSURANCE
A. Employees covered by this Agreement shall have the option upon retirement, to continue participation in the City's health insurance program at the employee's expense.

B. Employees in the Marine Safety Lieutenant classification, who were hired before January 1, 2008 by the City, and who retire after December 31, 2009, with 20 or more combined years of employment with the City shall, upon retirement, be provided with individual medical insurance coverage. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided at the rate of (a) the average of the 2 lowest cost medical care plans offered by CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the retired employee becomes Medicare eligible, the City's contribution will be capped at the rate of (a) the average of the 2 lowest cost Medicare supplement plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare supplement plan, whichever is greater.

C. Employees in the Marine Safety Officer classification covered by this Agreement who were hired before April 13, 2009 by the City, have 20 or more combined years of employment with the City, have reached 55 years of age, and retire after December 31, 2010, shall be provided with individual medical insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided capped at the Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents medical insurance is identified as the City's contribution towards PEMHCA.

D. On or after January 1st 2008, the City shall contribute to the cost of medical coverage for each eligible retiree and dependents, an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution.

E. In all cases, the City's contribution for eligible dependent coverage for retirees shall terminate with the death of the retiree.

F. In the event an eligible retired employee resides in an area where the health plans provided by the City are not in effect, that retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution at time of retirement.

SECTION 5: SICK LEAVE
A. All full-time employees covered by this MOU shall accrue sick leave at the rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up to and including 520 hours. Except as otherwise provided in this MOU, no employee shall receive further accruals once the 520 hour maximum is reached.

B. The Department Head may require employees to present proof of illness for sick leaves in excess of 3 working days.

C. All employees in the Marine Safety Lieutenant classification, upon termination of employment with the City, all compensable leave hours will be paid to the employee at the employee's base rate of pay. Sick leave balances which have not been converted to leave time will be paid to the employee upon termination at 25% of the employee's base rate of pay.

D. All employees in the Marine Safety Officer classification except as otherwise provided, employees shall not be eligible for any payment for sick leave balances upon termination.

SBMSMA MOU 2026-2029
7 E. Employees who are on authorized leaves of absence, without pay, shall not accrue sick leave hours during said leaves of absence.

F. Sick leave balances may not be used to defer a disability retirement.

SECTION 6: VACATION TIME
A. Marine Safety Officers covered by this Agreement, have passed the employee probationary period (as defined in the Personnel Rules and Regulations, Section 6.01) shall be granted a vacation with pay of approximately 80 hours per year up to a maximum of approximately (160) hours per year.

B. All employees in the Marine Safety Lieutenant classification who shall have at least three (3) years of continuous service shall be entitled to eight (8) additional hours of vacation for each year of full-time continuous service in excess of three (3) years. The vacation accrual schedule for mid-management employees is as follows:

Years
Service
Vacation
Hours Earned
Maximum Hourly Accrual Rate / Pay
Period Bi-Weekly
Annual
Vacation
Hours
Maximum
Vacation Accrual
1 80 3.0769 80 160
2 80 3.0769 80 160
3 80 3.0769 80 160
4 88 3.3846 88 200
5 96 3.6923 96 200
6 104 4.0000 104 200
7 112 4.3044 112 200
8 120 4.6154 120 200
9 128 4.9231 128 240
10 136 5.2308 136 240
11 144 5.5385 144 240
12 152 5.8462 152 240
13 160 6.1538 160 240
C. All employees in the Marine Safety Officer classification who shall have at least (5) Years of continuous service, shall be entitled to eight (8) additional hours of vacation per year of full-time continuous service for each year of service in excess of five (5) years up to a maximum of approximately 160 hours per year.

D. The Marine Safety Officer vacation accrual schedule is as follows:

Years
Service
Vacation
Hours Earned
Maximum Hourly Accrual
Rate / Pay Period BiWeekly
Annual
Vacation
Hours
Maximum
Vacation
Accrual
0-5 80 3.0769 80 200
6-14 120 4.6154 120 200
15-19 160 6.1538 160 200
20+ 200 7.6923 200 200
SBMSMA MOU 2026-2029
8 E. Marine Safety Officers may maintain a maximum accrued vacation balance of 200 hours. Once an employee's accrued vacation balance reaches 200 hours, further vacation accruals shall cease until the balance is reduced below 200 hours. The 200-hour maximum may be exceeded only with prior written approval of the City Manager.

F. Employees covered by this agreement considered as hourly, part-time and/or seasonal employees shall not be eligible for paid vacations.

G. Employees covered by this agreement who are on leaves of absence, without pay, shall not accrue vacation leave hours during said leaves of absence.

H. Marine Safety Officers who have completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired on or before July 1, 2026 may receive compensation for up to 160 hours per fiscal year, in no more than two payments, with no individual payment exceeding 80 hours; and (2) employees hired after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

J. Vacation leave time shall not be approved until such time as it has been earned, unless prior, special arrangements have been made with the City Manager. Vacation leave shall be requested by the employee prior to the start of the vacation leave period. Such vacation leave to be taken shall be subject to the prior approval of the Department Head, or designee, subsequent to consideration of the departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies.

K. Marine Safety Lieutenants who have completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired before July 1, 2026 may receive compensation for up to 160 hours per fiscal year, in no more than two payments, with no individual payment exceeding 80 hours; and (2) employees hired on or after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

SECTION 7: HOLIDAYS
A. The City agrees to grant all full-time Marine Safety Association employees a full shift pay for each holiday recognized by City. Every full-time employee of the City shall be granted the following holidays with pay:

Holiday Date
New Year's Day January 1st
Martin Luther King Day 3rd Monday in January
Presidents' Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4th
Labor Day First Monday in September
Veteran's Day November 11th
Thanksgiving Day Fourth Thursday in November
Calendar day following Thanksgiving Day
Christmas Eve December 24th
Christmas Day December 25th
*(2) Floating Holidays (discretion of employee)
Total of 13 holidays annually
SBMSMA MOU 2026-2029
9 *Floating Holidays must be taken during each fiscal year (July 1st through June 30th). Floating holidays must be approved in advance by the Department Head.

B. When a holiday falls on a full-time employee's regularly scheduled day off, the employee shall receive compensatory time off for a full shift in lieu of holiday pay, in keeping with other provisions of this MOU.

Example: Employee A normally works a 4/10 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, Thursday, or Friday, Employee A would receive (10) hours of compensatory time off.

C. A Marine Safety Lieutenant and Marine Safety Officer who is required to work on a holiday shall receive pay computed at 1 1/2 times the employees' base hourly rate for the number of hours actually worked.

Example: Employee A works 6 hours on Christmas Day. Employee A would earn pay computed as follows:

Hours Pay Rate
Full-shift holiday pay base hourly rate
6 hours work pay regular hourly rate or overtime hourly rate, as applicable under MOU SECTION 8: RETIREMENT
A. The retirement program provided by the City shall consist of a pooled Public Employee's Retirement System (PERS) plan, which includes the following Government Code provisions:

Section Provision
20042 One Year Final Compensation
20965 Credit of Unused Sick Leave
21024 Military Service Credit
B. All employees incumbent in the Marine Safety Association shall participate in the 3% @ 50 formula plan for Local Safety Members.

C. The Marine Safety Association "PERS Classic" employees shall pay 9% of their CALPERS required contribution of their compensation earnable.

D. New employees/members hired on or after January 1, 2013 as defined by The Public Employees' Pension Reform Act (PEPRA) will be hired at the retirement formula in accordance with the PEPRA and other legislation.

SECTION 9: OVERTIME AND CALL OUT PAY
A. The following section pertains to the position of Marine Safety Lieutenant and Marine Safety Officer:

1. If work beyond normal workday, workweek or work period is required, the employee who may be asked to perform such overtime shall be notified of the apparent need for such overtime as soon as practicable prior to when the overtime is expected to begin.

2. Call out and overtime pay shall be paid at the rate of time and one-half the hourly rate. Minimum "call out" time (when returning to work) shall be 3 hours. Call out time shall start when employee is called to service.

3. Overtime will be computed by dividing the employee's regular monthly salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to be submitted and computed with the regular payroll.

4. Notwithstanding any provision of this Section, the employee shall be entitled to select either compensated overtime or compensatory time off subject to budget limitations, departmental rules and regulations, and Section 11 of this MOU.

SBMSMA MOU 2026-2029
10 SECTION 10: COMPENSATORY TIME OFF (CTO)
The maximum (cap) of CTO is (120) hours. Compensatory Time earned in excess of (120) hours will be paid as overtime during the pay period accrued.

SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee, when so appointed, must perform the duties and assume the responsibilities of the higher classification for (80) consecutive working hours and shall be paid according to the step in the assigned salary range of the new position which is a minimum of 5% higher than the salary received before the provisional appointment (not to exceed the top step).

B. When necessary and in the best interest of the City, the City Manager may provisionally assign an employee to a higher level of duty and responsibility than provided for in the employee's assigned classification which is not otherwise a part of an adopted classification. In the case of such an assignment, the employee must perform the higher level of duties for (80) consecutive working hours; thereafter the employee shall receive additional compensation of 5% so long as the assignment is authorized by the City Manager.

SECTION 12: LONGEVITY PAY
Ten (10) Years of Service - Employees who have achieved ten (10) years of uninterrupted full-time employment with the City shall receive a 5% increase in base salary effective on the 10th anniversary of their employment.

Twenty (20) Years of Service - Employees who have achieved twenty (20) years of uninterrupted full-time employment with the City shall receive an additional 5% increase in base salary (above the previously described 5% increase) effective on the 20th anniversary of their employment.

Twenty-five (25) Years of Service - Employees who have achieved twenty-five (25) years of uninterrupted full-time employment with the City shall receive an additional 5% increase (above the previously described increases) in base salary effective on the 25th anniversary of their employment.

SECTION 13: AUTOMOBILES AND MILEAGE
Employees covered by this MOU, utilizing their privately-owned automobiles for City business on a non-regular basis, shall be entitled to reimbursement for costs incurred at the mileage rate established by the Internal Revenue Service (IRS).

SECTION 14: ADMINISTRATIVE LEAVE
Effective the 1st payroll period in July 2026, and every July thereafter:

A. The Marine Safety Lieutenant and Marine Safety Officers shall be entitled to the equivalent of (2) work days of administrative leave during each fiscal year.

B. Administrative leave hours may not be carried forward to succeeding years nor may they be turned in for cash value.

SECTION 15: LIMITATIONS
A. No employee who is receiving Workers' Compensation payments and benefits is eligible to receive overlapping benefits (except life insurance) stated in this MOU.

SBMSMA MOU 2026-2029
11 B. City shall not make any monthly payments for premiums for any insurance benefit listed in this MOU, or uniform allowance, supplemental pay of any type and/or type of bonus on behalf of or to any employee who has been absent without authorization during entire said month or for any employee who has terminated for any reasons whatsoever or who is on leave of absence without pay of who is suspended from duties without pay for the entire said month.

SECTION 16: DEFERRED COMPENSATION
For the classification of Marine Safety Lieutenant and Marine Safety Officer, the City shall contribute the amount of $40 per payroll period into a deferred compensation program SECTION 17: BILINGUAL COMPENSATION
A. Upon the recommendation of a department director, the City Manager may award a bilingual compensation bonus of $52.50 per payroll period to those employees in positions determined to require bilingual skills.

B. The City Manager shall require the taking of competency tests to certify the employee as eligible for bilingual compensation based on the employee's proficiency in speaking the language determined to be required. Such certification shall be a condition precedent to qualifying for bilingual pay.

SECTION 18: CERTIFICATION PAY
A. Employees who possess and continuously maintain all of the following valid certifications shall receive $175 per month in certification incentive pay:

1. EMT-B

2. SCUBA Certification (NAUI or PADI)

3. Emergency Medical Response Instructor

4. Incident Command System (ICS) 100 and 200
B. Employees who possess and continuously maintain all of the following valid certifications shall receive an additional $85 per month in certification incentive pay:

1. United States Coast Guard Captain's License

2. FAA Remote Pilot Certification (Part 107)
C. Total certification incentive pay under this section shall not exceed $260 per month.

D. Employees must maintain all required certifications within the applicable tier to remain eligible for that tier of certification incentive pay.

SECTION 19: WORK SCHEDULE
A. At the discretion of the City Manager, work schedules may be altered as needed to accommodate service demand levels of the residents of the City of Seal Beach.

SECTION 20: TUITION REIMBURSEMENT
A. Higher Education Degree Programs - Marine Safety Association employees attending accredited community colleges or universities for the purpose of obtaining an eligible higher education degree may apply for reimbursement of tuition, books, student fees and parking. Tuition reimbursement is capped at the 2026 California State University (CSU) tuition rates, not to exceed $3,908 per semester and $7,816 per fiscal year.

SBMSMA MOU 2026-2029
12 B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

C. Minimum Service Requirement - An employee must have completed at least one (1) years of continuous employment with the City before becoming eligible to receive tuition assistance. Eligibility shall be determined as of the date the employee's course begins.

D. Eligible Degree Programs - Tuition assistance may be approved for coursework leading to an associate, bachelor's, or master's degree. Tuition assistance shall not be available for coursework leading to a doctoral or doctorate degree.

E. Benefit to the City - To be eligible for tuition assistance, the coursework or degree program must be reasonably related to the employee's current position, current department, or a position or function within another City department, and must provide a demonstrable benefit to the City. The City shall have sole discretion to determine whether a proposed course or degree program meets this requirement. Approval of a course or degree program shall not guarantee promotion, reclassification, transfer, or appointment to another City position.

F. Tuition Reimbursement Repayment - As a condition of receiving tuition reimbursement, employees hired on or after July 1, 2026, who voluntarily separate from City employment shall reimburse the City for a portion of the tuition reimbursement received as follows:

1. Employees who voluntarily terminate employment within one (1) year from the date tuition reimbursement is paid by the City shall reimburse the City seventy-five percent (75%) of the amount reimbursed.

2. Employees who voluntarily terminate employment more than one (1) year, but within two (2) years, from the date tuition reimbursement is paid by the City shall reimburse the City fifty percent (50%) of the amount reimbursed.

3. No reimbursement to the City shall be required for employees who voluntarily terminate employment more than two (2) years after the date tuition reimbursement is paid.

4. This repayment obligation shall not apply to employees who retire from the City through CalPERS, are separated due to layoff, disability retirement, death, or are otherwise involuntarily separated from employment.

5. Employees employed by the City prior to the effective date of this Agreement shall be grandfathered and shall not be subject to the tuition reimbursement repayment provisions contained herein.

SECTION 21: COMPENSATION PLAN
A. Basic Compensation Plan

1. Employees covered by this MOU shall be included under the Basic Compensation Plan. Every classification under this Plan shall be assigned a salary range adopted by the City Council. The salary schedule shall consist of 5 steps within each range.

2. The first step is a minimum rate and is normally the hiring rate for the classification. An employee may be assigned, upon appointment, to other than the normal entering salary step within the assigned range upon the recommendation of the Department Head and with the approval of the City Manager when it is decided that such action is in the best interests of the City.

3. The second step, B step, is a merit adjustment which may be given at the end of the probationary period subject to the recommendation of the Department Head and with the approval of the City Manager.

4. The third, fourth and fifth steps are merit adjustments to encourage an employee to improve their work and to recognize increased skill on the job. Employees are normally eligible for these adjustments at any time after SBMSMA MOU 2026-2029
13 the completion of (1) year of service at the preceding step. Each adjustment shall be made subject to the recommendation of the Department Head and with the approval of the City Manager.

B. Advancement within Salary Ranges

1. In order to properly compensate an employee, advancement in salary shall be based on merit.

2. Advancement in salary shall not be automatic, but shall depend upon increased service value of the employee to the City.

3. The Department Head and/or the employee's immediate supervisor shall be responsible to evaluate an employee fairly in an unbiased fashion for the determination of job performance. Advancement shall be made only upon recommendation of the Department Head and with the approval of the City Manager.

4. An employee should be reviewed at least once every (12) months from the effective date of his last performance evaluation, special performance advancement or promotion. Nothing contained herein shall restrict the Department Head from denying the increase after evaluation, nor shall it prevent him from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated.

C. Salary Increases

1. Promotional Appointment - When an employee is promoted to a position with a higher salary range, the employee shall be compensated at a step of the salary range assigned to the new position that is closest to providing a 5% salary increase over the base salary received immediately prior to promotion.

2. Temporary Appointment - Employees assigned, in an acting capacity, to a higher classification than the employees' present classification for a period of
not less than 80 consecutive working hours shall be entitled to temporary appointment pay. In addition, employees who are assigned by the department director in writing to regularly scheduled acting assignments of less than 80 hours shall also be entitled to temporary appointment pay. Temporary appointment pay will be retroactive to the first hour served in the higher classification and shall be paid at a rate equal to the first step of the higher classification but in no event shall temporary appointment pay be less than 5% more of the employee's current rate.

D. Salary Decreases - In the case of a demotion of an employee to a classification with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new classification as recommended by the Department Head with the approval of the City Manager. The employee shall retain his previous anniversary date.

E. Adjustments of Salary Ranges - When a salary range for a given classification is revised upward or downward, the incumbents of positions and classifications affected shall have their existing salary adjusted to the same step in the new salary range and their anniversary date shall not be changed.

F. Salary and Benefits on Suspension - During suspension from the City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except he shall not forfeit his medical health plans, including dental, retirement plan, disability insurance or life insurance. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment for loss of income and benefits during the period of suspension.

G. Salary Adjustments During Term of MOU

1. The salary schedule for each position classification affected is hereby determined and established upon adoption by City Council. Salary increases are as follows:

Effective the first full pay period in July 1, 2026, employees shall receive a 3% cost of living adjustment.

Effective the first full pay period in July 1, 2027, employees shall receive a 2.5% cost of living adjustment.

Effective the first full pay period in July 1, 2028, employees shall receive a CPI adjustment of not less than 1% and not more than 3%, measured by the change in the Los Angeles-Long Beach-Anaheim All Urban SBMSMA MOU 2026-2029
14 Consumers Index (CPI-U), unadjusted, for the 12 months ending in April 2028 (April 2027 - April 2028 index).

Wage increases provided under this Agreement shall be made retroactive to the first full pay period in July 1, 2026, provided the Agreement is ratified by both parties and approved by the City Council.

Mid-Management
Grade Job Classifications
31 Marine Safety Lieutenant
Technical
Grade Job Classifications
23 Marine Safety Officer
H. Salary Study
The City shall complete a salary study for SBMSMA classifications no later than October 2026. The cost of the study shall not exceed $10,000.

SECTION 22: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay

1. Upon the Department Head's recommendation and approval of the City Manager, an employee may be granted a level of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed 180 working days.

2. Upon written request of the employee, the City Manager may grant a leave of absence, with or without pay, for a period not to exceed (1) year.

3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted. Failure on the part of the employee to report promptly at such leave's expiration and receipt of notice to return to duty shall be cause for discharge.

4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except an employee shall receive their monthly flex dollar allowance and the City, as specifically
provided for in this MOU, shall contribute to the employee's disability insurance plan, and life insurance plan for the first (30) days of leave of absence.

B. Bereavement Leave
The City agrees to provide 40 hours bereavement leave with pay for death in the immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. "Immediate family" is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, mother-in-law, father-in-law, domestic partner-in-law or dependent relative living with the employee.

C. Military Leave of Absence

1. Military leave shall be granted in accordance with the provisions of Federal and State law. All employees entitled to military leave shall give the Department Head an opportunity within the limits of military regulations to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the Department Head of such leave request (10) working days in advance of the beginning of the leave.

SBMSMA MOU 2026-2029
15 2. In addition to the provisions of State law, the City shall continue to provide eligible employees on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first (3) months of military leave. During said period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance (if applicable).

3. After the first (3) months of military leave, the employee may continue said benefits at his cost.

D. Pregnancy Disability Leave of Absence

1. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. The employee may elect to take a lesser period of leave.

2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay.

E. Family Leave - Upon a demonstration of need and subject to the following conditions, an employee may take leave or unpaid leave to care for his newborn infant, whether through parentage or adoption, or to care for a seriously ill or injured member of the employees "immediate family" as defined in Section 6.

1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City.

2. Requests for family leave must be submitted in writing to the employee's supervisor at the earliest possible date proceeding the time when the leave is to begin.

3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws.

4. In the event of an extended family leave, the employee may be required to periodically report on the status of the situation giving rise to the leave.

5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager consistent with the provisions of State and Federal Family Leave laws.

F. Catastrophic Leave - The purpose of the Catastrophic Leave Pool is to enable full time employees to receive and donate vacation, administrative leave, and CTO leave credits on an hour for hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or a member of their immediate family. Sick Leave is excluded from this program.

The following conditions shall apply to Catastrophic Leave:

1. Catastrophic Leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident.

2. The leave pool shall be administered by the Finance Department.

3. Employees must be in regular full-time appointed positions to be eligible to receive catastrophic leave.

4. Employees receiving Long-Term Disability payments are excluded from receiving catastrophic leave under this program.

5. All donations are to be confidential, between the donating employee and the Finance Department.

6. Employees donating to the pool must have 40 hours of paid leave available after making a donation.

7. Donating employees must sign an authorization, including specifying the specific employee to be the recipient of the donation.

8. Donations will be subject to applicable tax laws.

9. The availability of Catastrophic Leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee.

SBMSMA MOU 2026-2029
16 10. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician's Statement that the presence of the employee is necessary.

11. Catastrophic Leave due to the illness or injury of the employee will require medical justification as evidenced by a Physician's Statement as to the employee's condition.

SECTION 23: HEALTH WELLNESS PROGRAM (Medical Maintenance Examination & Wellness Program) The City shall reimburse Employee, as a medical benefit, for Employee's actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $550 per fiscal year for the Marine Safety Lieutenant and in an amount not to exceed $450 for the Marine Safety Officer classification, subject to the City's normal reimbursement processes and requirements such expenses. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager or his/her designee.

SECTION 24: MISCELLANEOUS
A. Layoff: The City is to give Association (45) days prior notice before the effective date of any layoffs. During this (45) day period, the City will, upon request, meet and confer on the impact of the layoffs.

B. Physical Fitness Program: The physical fitness program is a voluntary program for all union members utilizing vacation hours as compensation for achieving goals within this program. The details of this program are attached as Exhibit A to this MOU.

SECTION 25: TERM
The Memorandum of Understanding shall remain in full force and effect from July 1, 2026 until midnight June 30, 2029.

SECTION 26: APPEALS
A. Employees shall be allowed to appeal written reprimands to the Personnel Officer. Such appeals shall be filed within (14) calendar days. The decision of the Personnel Office shall be final.

B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation shall be interpreted to allow employees to present evidence showing the absence was for good cause and that circumstance prevented them from contacting the City.

SECTION 27: REOPENER
City and Association agrees to reconvene during the terms of this MOU to discuss all fringe benefits, including but not limited to health plans, the implementation of HSA or HRA programs for employee and retiree medical premiums.

SBMSMA MOU 2026-2029
17 SECTION 28: RATIFICATION
This Memorandum of Understanding is subject to approval and adoption by the City Council and ratification by the required number of the duly authorized representatives of the Association. Following such approval and adoption, the Memorandum of Understanding shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council.

IN WITNESS WHEREOF, the parties have caused this Memorandum of Understanding to be executed this _____ day of __________ 2026.

SBMSMA MOU 2026-2029
18 EXHIBIT A

SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION

PHYSICAL FITNESS PROGRAM
NOTE: The specific months for the testing is at the discretion of the City Manager or their designee.

INTRODUCTION
The physical fitness program is a voluntary program for all members of the Seal Beach Marine Safety Management Association (SBMSMA). SBMSMA members may receive up to twenty (20) hours of vacation time by meeting the requirements of the test at the end of each six (6) month period. The maximum time each member will be able to achieve is up to forty (40) vacation hours earned annually for as long as the member continues successfully in the program.

ENROLLMENT
To start the program, each member must contact the Physical Fitness Committee and advise them of your intent.

Each member participating will be tested every six months, specifically in the months of December and June. A minimum level has been established for each test. Participants will have to move up a category or reach the maintenance level indicated on each test by age group. At one (1) year and six (6) months, participants will be required to be at the maintenance level. Once the maintenance level has been attained, participants will have to maintain that level on subsequent tests. Testing each six (6) month period will validate the awarding of vacation time. Testing may be conducted during on-duty hours at the Beach Supervisor discretion. The Physical Fitness Committee will perform the testing.

ALLOCATION OF HOURS
Employees will be awarded five hours for successfully completing each test as set forth in TESTING below. No employee shall receive any hours if they fail to meet the minimum standards for at least two of the four tests.

PHYSICAL FITNESS COMMITTEE
The Physical Fitness Committee shall be comprised of board members of the SBMSMA. The Physical Fitness Committee is established to retain administrative control over the program. All committee members shall be active participants in the program. The committee will be responsible for examining problems and disputes that arise from the administration of the program. The committee will be the formal arbitrators on these matters.

REQUIRED TEST
The physical fitness needs of Marine Safety Lifeguards fall into two areas: Cardio Fitness and Strength. The tests outlined below may be modified by the Physical Fitness Committee as necessary. The tests used in this program to evaluate fitness in these areas will be:

Area Tests
Cardio fitness 500 meter swim (October); 1 Mile Beach Run/Pier Swim (April) Strength Push-up; Sit-ups; Pull-ups

MEDICAL COVERAGE
Participation in the program will be on a voluntary basis. Any exercise workouts done under this program, i.e. weightlifting, contact sports, running, etc. would not be covered for benefits under Workers Compensation, the city will not provide blanket coverage for any injury which could conceivably be claimed under the pretext of participation in the Physical Fitness Program.

CARDIO FITNESS TESTS - 500-meter pool swim (October)
SBMSMA MOU 2026-2029
19 Members will swim 500 meters in a pool measured in yards or meters. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one's aerobic capacity or the ability of the heart and lungs to utilize oxygen.

Rating Time
Excellent 9:15-9:30
Good 9:31-10:00
Fair 10:01-10:30
Poor 10:31-11:00
Very Poor Above 11:01
Maintenance Level Below 10:00
Minimum Level 11:00
CARDIO FITNESS TESTS - 1 mile beach run and a pier swim (June) Members will run 1 mile on the beach and swim 1 length of the pier. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one's aerobic capacity or the ability of the heart and lungs to utilize oxygen.

Rating Time
Excellent 18:00-20:30
Good 20:31-23:00
Fair 23:01-25:00
Poor 25:01-26:00
Very Poor Above 26:00
Maintenance Level Below 25:00
Minimum Level 26:00

STRENGTH TESTS
The body is maintained in a prone position supported by straight arms on the hands and toes. A partner places his/her fist on the ground below the member's chest. The member must always keep his/her back straight and from the up position, lower him/herself to the floor until his chest touches his/her partner's hand and then push to the up position again. The member can rest in the up position. The total number of correct push-ups are recorded and compared to the standards on the chart. This test measures muscle endurance and a low level of muscle endurance indicates an inefficiency in movement and a poor capacity to perform work. This test measures mainly the muscles of both the chest and upper arm which are important in physical demands of swimming and propelling surf craft.

Rating Under 30 30-39 40-49 50+
Excellent 43- 37- 30- 25+
Good 28-42 23-36 20-29 17-24
Fair 20-27 17-22 15-19 12-16
Poor 5-19 3-16 2-14 2-11
Very Poor 4-below 2-below 2-below 1-below
Maintenance Level 40 35 25 18
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20 Minimum Level 18 15 13 11

PULL-UPS
Members will hold the bar with the palms away from the body. Arms are extended out straight in the beginning position with the feet off the ground. Members must pull his/her body up to a position where his chin is above the bar for one repetition; the total number of correct pull-ups are recorded and compared to the standards on the chart. In lieu of pull-ups, members may choose to do the "Lat Pull". Members are required to pull down seventy percent (70%) of their body weight ten (10) times to achieve maintenance level.

Rating Under 30 30-39 40-49 50+
Excellent 9 & above 7 & above 6 & above 5 & above
Good 8 6 5 4
Fair 6-7 4-5 3-4 2-3
Poor 5 3 2 1
Very Poor 4 & below 2 & below 1 & below 0
Maintenance Level 8 6 5 4
Minimum Level 5 3 2 1

SIT-UPS
Members start by lying on his/her back, knees bent, heels flat on the floor and arms folded across their chest. A partner holds the feet down. In the up position, the officer will touch his/her elbows to his knees and then return to the starting position, not placing their shoulder blades on the ground before starting the next sit-up. This is continuous exercise, no resting. The total number of correct sit-ups is recorded and compared to the standards on the chart. This test measures muscular endurance in the abdominal muscle group, an area of great concern to the sedentary individual. Much evidence exists of the correlation between poor abdominal muscle development, excessive fat tissue and lower back problems.

Rating Under 30 30-39 40-49 50+
Excellent 51 & above 45 & above 40 & above 36 & above
Good 40-50 34-44 27-39 23-39
Fair 35-39 29-33 20-26 16-22
Poor 24-34 18-28 7-19 6-15
Very Poor 23-below 17-below 6-below 5-below
Maintenance Level 45 40 35 30
Minimum Level 30 25 20 15
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Seal Beach Marine Safety Management
Association (SBMSMA)

MEMORANDUM OF UNDERSTANDING

REDLINE
Resolution 7587 Resolution [TBD]
ADOPTED: December 9, 2024 ADOPTED: [TBD]
EXPIRES: June 30, 2026 EXPIRES: June 30, 2029
Proposed Term: July 1, 2026 - June 30, 2029
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TABLE OF CONTENTS
SECTION 1: RECOGNITION
SECTION 2: CITY RIGHTS
SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE SECTION 4: RETIREMENT HEALTH INSURANCE
SECTION 5: SICK LEAVE
SECTION 6: VACATION TIME
SECTION 7: HOLIDAYS
SECTION 8: RETIREMENT
SECTION 9: OVERTIME AND CALL OUT PAY
SECTION 10: COMPENSATORY TIME OFF
SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
SECTION 12: SENIORITY BONUSLONGEVITY PAY
SECTION 13: AUTOMOBILES AND MILEAGE
SECTION 14: ADMINISTRATIVE LEAVE
SECTION 15: LIMITATIONS
SECTION 16: DEFERRED COMPENSATION
SECTION 17: BILINGUAL COMPENSATION
SECTION 18: CERTIFICATION PAY
SECTION 19: WORK SCHEDULE
SECTION 20: TUITION REIMBURSEMENT
SECTION 21: COMPENSATION PLAN
SECTION 22: LEAVES OF ABSENCE
SECTION 23: HEALTH WELLNESS PROGRAM
SECTION 24: MISCELLANEOUS
SECTION 25: TERM
SECTION 26: APPEALS
SECTION 27: REOPENER
SECTION 28: RATIFICATION

EXHIBIT A - SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION PHYSICAL FITNESS PROGRAM SBMSMA MOU 2026-2029 | NEGOTIATION REDLINE
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MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF SEAL BEACH

MARINE SAFETY MANAGEMENT ASSOCIATION
SECTION 1: RECOGNITION
A. Pursuant to the provisions of Employee-Employer Relations Resolution 5242, as amended, the City of Seal Beach (hereinafter called the "City" and/or "Employer" and/or "Management" interchangeably) has recognized for the purpose of this Memorandum of Understanding (MOU), the Seal Beach Marine Safety Management Association (SBMSMA) an association of employees of the City of Seal Beach, hereinafter referred to as "Association".

B. The City recognizes the Association as the representative of the employees in the classification and assignments set forth in Section 21.G below for the purpose of meeting its obligations under this MOU, the Meyers-MiliasBrown Act, Government Code Section 3500 et seq., when City rules, regulations, or laws affecting wages, hours and/or other terms and conditions of employment are amended or changed.

C. The City agrees that the recognized representatives of Association not to exceed 3 in number shall be entitled to meet and confer with City during said recognized representatives' normal working hours without suffering any loss in pay while absent from the duties for such purpose. City also agrees that such representatives may utilize a total of not more than 3 hours per year without suffering any loss in pay for such absence for the purpose of meeting with employees who are members of the Association and/or other officers of the Association.

D. City recognizes Association's right to appoint or elect representatives to meet and confer with City's management representatives on salaries, wages, and terms and conditions of employment. Association agrees to notify City in writing as to the identity of the representatives and of subsequent appointments, if any. Association and City agree that employees appointed or elected as Association representatives shall be required to work full time.

E. It is recognized and agreed that no Association business and/or meetings will be conducted and/or attended by employees of City during their respective hours of duty and work unless specified herein.

F. Representatives and/or officers of Association shall not interrupt the work of any employee of City at any time to conduct business or other matters connected with Association without prior consent of Management.

G. This document supersedes all prior Memoranda of Understanding and verbal agreements between the parties hereto.

SECTION 2: CITY RIGHTS
A. Rights/Responsibilities - This City reserves, retains and is vested with solely and exclusively, all rights of management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include but not be limited to, the following rights:

1. To manage the City generally and to determine the issues of policy.

2. To determine the existence or nonexistence of facts which are the basis of the management decision(s).

3. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services.

4. To determine the nature, manner, means and technology and extent of services to be provided to the public.

5. To determine methods of financing.

6. To determine types of equipment or technology to be used.

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7. To determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted.

8. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City.

9. To assign work to and schedule employees in accordance with any requirements set forth in this MOU, and to establish and change work schedules and assignments upon reasonable notice insofar as such changes do not conflict with this MOU.

10. To layoff employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive.

11. To establish and modify productivity and performance programs and standards.

12. To discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause.

13. To determine minimum qualifications, skills abilities, knowledge, selection procedures and standards, job classifications and to reclassify employees in accordance with this MOU and applicable resolutions and codes of the City.

14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the MOU and applicable resolutions and codes of the City.

15. To determine policies, procedures and standards for selection, training and promotion of employees in accordance with this MOU and applicable resolutions and codes of the City.

16. To establish reasonable employee performance standards including but not limited to, quality and quantity standards and to require compliance therewith.

17. To maintain order and efficiency in its facilities and operation.

18. To establish and promulgate and/or modify rules and regulations to maintain order and safety and which are not in contravention with the Agreement.

19. To restrict the activity of an employee organization on municipal property and on municipal time except as set forth in this MOU.

20. To take any and all necessary action to carry out the mission of the City in emergencies.

B. Where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of City Rights shall impact the wages, hours and other terms and conditions of employment of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU.

SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE

INSURANCE
A. Health Insurance Coverage

1. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents, an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution. For calendar year 2024, CalPERS has established the minimum PEMHCA contribution at $157 per month per employee.

2. The City shall contribute an equal amount towards the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees.

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3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the Association during negotiations. For employees participating in the City's cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the cafeteria plan. Beginning January 1, 2024, the monthly flex dollar allowance shall be:

For Employee only $ 1,1666.99/month For Employee and 1 dependent $ 1,803.38month For Employee and 2 or more dependents $ 2,332.12/month

4. A portion of the monthly flex dollar allowance is identified as the City's contribution towards PEMHCA. Thus, for example, in calendar year 2024, an employee only monthly flex dollar allowance is $1,1666.99 of that $1,166.99; $157 has been designated by the City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the City's cafeteria plan.

5. Effective January 1, 2024, and every January 1st during the term of this agreement, the City shall increase the contribution amounts above by the average percentage of increase for basic plans published by CalPERS which sets health insurance premiums for the coverage year.

6. Employees meeting the waiver criteria and electing to waive enrollment in the City's cafeteria plan are eligible to receive $350 per month beginning January 1, 2024 (upon showing proof of medical insurance coverage under an alternative plan). Election forms are available in the Human Resources.

7. Full-time employees covered by this MOU who have completed 30 days of uninterrupted service shall be enrolled in the cafeteria plan on the first day of the next succeeding month.

8. Employees who change classification from full-time to part-time provisional, hourly or seasonal shall not be eligible for participation in the cafeteria plan.

9. City shall not contribute to the cafeteria plan for any employee during any month the employee is on leave of absence without pay or who is absent from regular duties without authorization, for a full calendar month. City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers Compensation Insurance.

1. The City shall provide for full-time employees and eligible retired employees a group hospital, medical and dental insurance plan.

2. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution. The City shall contribute an equal amount toward the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees.

3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the employees during negotiations. For employees participating in the City's full flex cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the full flex cafeteria plan. Each eligible employee shall receive the monthly flex dollar allowance applicable to the employee's coverage tier, as adjusted under subsection 5.

4. A portion of the monthly flex dollar allowance is identified as the City's contribution toward PEMHCA.

The monthly flex dollar allowance may be used only in accordance with the terms of the full flex cafeteria plan.

5. Effective each January 1 during the term of this Agreement, the monthly flex dollar allowances in effect immediately before that date shall be increased by the average percentage increase for CalPERS basic plans for the applicable coverage year.

6. Employees enrolled in the plan are required to pay any premium amounts in excess of the City contribution. Such amounts will be deducted from the affected employee's payroll check on the first two pay periods of each month.

7. The City's minimum employer contribution under PEMHCA shall be the amount established by CalPERS for the applicable calendar year.

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8. Employees meeting the waiver criteria and electing to waive enrollment in the City's full-flex cafeteria plan are eligible to receive $350 550 per month upon showing proof of medical insurance coverage under an alternative plan.

9. Part-time, seasonal, provisional and/or hourly employees shall not be eligible for participation in this program.

10. Full-time employees covered by this Agreement who have completed 30 days of uninterrupted service shall be enrolled in the full flex cafeteria plan on the first day of the next succeeding month.

11. Employees who change classification from full-time to part-time, provisional, hourly, or seasonal shall not be eligible for participation in the full-flex cafeteria plan.

12. The City shall not contribute a flex dollar amount for any employee during any month the employee is on leave of absence without pay, or is absent from regular duties without authorization, for a full calendar month. The City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers' Compensation Insurance.

B. Life Insurance
Employees covered by this agreement shall receive a $50,000 term life insurance policy paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month.

C. Income Continuation
Employees covered by this Agreement shall receive a policy to provide for income continuation of 66.67% of the employee's monthly salary, up to a maximum of $5,000 per month, whichever is lesser, paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. Said income continuation shall commence on the 3lst day of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while the employee is absent from work for a period of up to age 65.

D. Annual Dermatological Screening
The City will provide employees with one (1) annual dermatological (skin cancer) screening at no cost to employees. Screening will be provided by Beach Dermatology located at 500 Pacific Coast Highway, Suite 212 in Seal Beach and must be scheduled by the employee. Any treatment deemed necessary following the exam shall be scheduled by the employee through the employee's provider of choice using the employee's insurance. All medical billing for the screening services will be forwarded for payment to the City of Seal Beach by Beach Dermatology.

The City will provide employees with one (1) annual dermatological (skin cancer) screening at no cost to employees. Screening will be provided by one of the three dermatological providers identified by the City, including Alamitos Dermatology, and must be scheduled by the employee. Any treatment deemed necessary following the exam shall be scheduled by the employee through the employee's provider of choice using the employee's insurance. All medical billing for the screening services will be forwarded for payment to the City of Seal Beach by the selected City-approved dermatological provider.

SECTION 4: RETIREMENT HEALTH INSURANCE
A. Employees covered by this Agreement shall have the option upon retirement, to continue participation in the City's health insurance program at the employee's expense.

B. Employees in the Marine Safety Lieutenant classification, who were hired before January 1, 2008 by the City, and who retire after December 31, 2009, with 20 or more combined years of employment with the City shall, upon retirement, be
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provided with individual medical insurance coverage. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided at the rate of (a) the average of the 2 lowest cost medical care plans offered by CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the retired employee becomes Medicare eligible, the City's contribution will be capped at the rate of (a) the average of the 2 lowest cost Medicare supplement plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare supplement plan, whichever is greater.

C. Employees in the Marine Safety Officer classification covered by this Agreement who were hired before April 13, 2009 by the City, have 20 or more combined years of employment with the City, have reached 55 years of age, and retire after December 31, 2010, shall be provided with individual medical insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided capped at the Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents medical insurance is identified as the City's contribution towards PEMHCA.

D. On or after January 1st 2008, the City shall contribute to the cost of medical coverage for each eligible retiree and dependents, an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution.

E. In all cases, the City's contribution for eligible dependent coverage for retirees shall terminate with the death of the retiree.

F. In the event an eligible retired employee resides in an area where the health plans provided by the City are not in effect, that retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution at time of retirement.

SECTION 5: SICK LEAVE
A. All full-time employees covered by this MOU shall accrue sick leave at the rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up to and including 520 hours. Except as otherwise provided in this MOU, no employee shall receive further accruals once the 520 hour maximum is reached.

B. The Department Head may require employees to present proof of illness for sick leaves in excess of 3 working days.

C. All employees in the Marine Safety Lieutenant classification, upon termination of employment with the City, all compensable leave hours will be paid to the employee at the employee's base rate of pay. Sick leave balances which
have not been converted to leave time will be paid to the employee upon termination at 25% of the employee's base rate of pay.

D. All employees in the Marine Safety Officer classification except as otherwise provided, employees shall not be eligible for any payment for sick leave balances upon termination.

E. Employees who are on authorized leaves of absence, without pay, shall not accrue sick leave hours during said leaves of absence.

F. Sick leave balances may not be used to defer a disability retirement.

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SECTION 6: VACATION TIME
A. Marine Safety Officers covered by this Agreement, have passed the employee probationary period (as defined in the Personnel Rules and Regulations, Section 6.01) shall be granted a vacation with pay of approximately 80 hours per year up to a maximum of approximately (160) hours per year.

B. All employees in the Marine Safety Lieutenant classification who shall have at least three (3) years of continuous service shall be entitled to eight (8) additional hours of vacation for each year of full-time continuous service in excess of three (3) years. The vacation accrual schedule for mid-management employees is as follows:

Years
Service
Vacation
Hours Earned
Maximum Hourly Accrual Rate / Pay
Period Bi-Weekly
Annual
Vacation
Hours
Maximum
Vacation Accrual
1 80 3.0769 80 160
2 80 3.0769 80 160
3 80 3.0769 80 160
4 88 3.3846 88 200
5 96 3.6923 96 200
6 104 4.0000 104 200
7 112 4.3044 112 200
8 120 4.6154 120 200
9 128 4.9231 128 240
10 136 5.2308 136 240
11 144 5.5385 144 240
12 152 5.8462 152 240
13 160 6.1538 160 240
C. All employees in the Marine Safety Officer classification who shall have at least (5) Years of continuous service, shall be entitled to eight (8) additional hours of vacation per year of full-time continuous service for each year of service in excess of five (5) years up to a maximum of approximately 160 hours per year.

D. The vacation accrual schedule is as follows:

D. The Marine Safety Officer vacation accrual schedule is as follows:

Years
Service
Vacation
Hours Earned
Maximum Hourly Accrual
Rate / Pay Period BiWeekly
Annual
Vacation
Hours
Maximum
Vacation
Accrual
0-5 80 3.0769 80 200
6-14 120 4.6153 4.6154 120 200
15-19 160 6.1538 160 200
20+ 200 7.6923 200 200
E. All employees in the Marine Safety Officer classification shall only be allowed to accrue a maximum of 200 hours of vacation. Once this maximum is reached, all further accruals will cease. Vacation accruals will SBMSMA MOU 2026-2029 | NEGOTIATION REDLINE
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recommence after the employee has taken vacation and the employee's accrued hours drop below the maximum. The maximum can only be exceeded with the approval of the City Manager in writing.

E. Marine Safety Officers may maintain a maximum accrued vacation balance of 200 hours. Once an employee's accrued vacation balance reaches 200 hours, further vacation accruals shall cease until the balance is reduced below 200 hours. The 200-hour maximum may be exceeded only with prior written approval of the City Manager.

F. Employees covered by this agreement considered as hourly, part-time and/or seasonal employees shall not be eligible for paid vacations.

G. Employees covered by this agreement who are on leaves of absence, without pay, shall not accrue vacation leave hours during said leaves of absence.

H. All employees in the Marine Safety Officer classification not more than twice in each fiscal year, who have completed at least 1 year of continuous service shall, upon request, receive compensation for up to 160 hours of available accrued vacation time, but no more than 80 hours per occurance.

H. Marine Safety Officers who have completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired on or before July 1, 2026 may receive compensation for up to 160 hours per fiscal year, in no more than two payments, with no individual payment exceeding 80 hours; and (2) employees hired after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

I. Employees are encouraged to use at least the amount of vacation hours earned each fiscal year. Those employees who have been credited with preexisting leave hours are expected to use a portion of the excess as leave time, in addition to the new vacation hours, each year until the maximum accrual is met. The City recognizes that a number of long-term employees have accrued substantially more leave time than shorter-term employees, and that it will likely take them significantly longer to achieve this goal. It is the intent of this section to balance the personal interests of the employee with the financial concerns of the City; as such, significant progress toward reaching the maximum accrual amounts may be deemed a success.

J. Vacation leave time shall not be approved until such time as it has been earned, unless prior, special arrangements have been made with the City Manager. Vacation leave shall be requested by the employee prior to the start of the vacation leave period. Such vacation leave to be taken shall be subject to the prior approval of the Department Head, or designee, subsequent to consideration of the departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies.

K. All employees in the Marine Safety Lieutenant classification not more than twice in each fiscal year, who has completed at least one year of continuous service shall, upon request, receive compensation for up to 160 hours of available accrued vacation time, but no more than 80 hours per occurrence.

K. Marine Safety Lieutenants who have completed at least one (1) year of continuous service may, upon request, receive compensation for available accrued vacation as follows: (1) employees hired before July 1, 2026 may receive compensation for up to 160 hours per fiscal year, in no more than two payments, with no individual payment exceeding 80 hours; and (2) employees hired on or after July 1, 2026 may receive compensation for up to 80 hours per fiscal year, which may be taken in one or two payments.

SECTION 7: HOLIDAYS
A. The City agrees to grant all full-time Marine Safety Association employees a full shift pay for each holiday recognized by City. Every full-time employee of the City shall be granted the following holidays with pay:

Holiday Date
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New Year's Day January 1st
Martin Luther King Day 3rd Monday in January
Presidents' Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4th
Labor Day First Monday in September
Veteran's Day November 11th
Thanksgiving Day Fourth Thursday in November
Calendar day following Thanksgiving Day
Christmas Eve December 24th
Christmas Day December 25th
*(2) Floating Holidays (discretion of employee)
Total of 13 holidays annually
*Floating Holidays must be taken during each fiscal year (July 1st through June 30th). Floating holidays must be approved in advance by the Department Head.

B. When a holiday falls on a full-time employee's regularly scheduled day off, the employee shall receive compensatory time off for a full shift in lieu of holiday pay, in keeping with other provisions of this MOU.

Example: Employee A normally works a 4/10 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, Thursday, or Friday, Employee A would receive (10) hours of compensatory time off.

C. A Marine Safety Lieutenant and Marine Safety Officer who is required to work on a holiday shall receive pay computed at 1 1/2 times the employees' base hourly rate for the number of hours actually worked.

Example: Employee A works 6 hours on Christmas Day. Employee A would earn pay computed as follows:

Hours Pay Rate
Full-shift holiday pay base hourly rate
6 hours work pay regular hourly rate or overtime hourly rate, as applicable under MOU SECTION 8: RETIREMENT
A. The retirement program provided by the City shall consist of a pooled Public Employee's Retirement System (PERS) plan, which includes the following Government Code provisions:

Section Provision
20042 One Year Final Compensation
20965 Credit of Unused Sick Leave
21024 Military Service Credit
B. All employees incumbent in the Marine Safety Association shall participate in the 3% @ 50 formula plan for Local Safety Members.

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C. The Marine Safety Association "PERS Classic" employees shall pay 9% of their CALPERS required contribution of their compensation earnable.

D. New employees/members hired on or after January 1, 2013 as defined by The Public Employees' Pension Reform Act (PEPRA) will be hired at the retirement formula in accordance with the PEPRA and other legislation.

SECTION 9: OVERTIME AND CALL OUT PAY
A. The following section pertains to the position of Marine Safety Lieutenant and Marine Safety Officer:

1. If work beyond normal workday, workweek or work period is required, the employee who may be asked to perform such overtime shall be notified of the apparent need for such overtime as soon as practicable prior to when the overtime is expected to begin.

2. Call out and overtime pay shall be paid at the rate of time and one-half the hourly rate. Minimum "call out" time (when returning to work) shall be 3 hours. Call out time shall start when employee is called to service.

3. Overtime will be computed by dividing the employee's regular monthly salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to be submitted and computed with the regular payroll.

4. Notwithstanding any provision of this Section, the employee shall be entitled to select either compensated overtime or compensatory time off subject to budget limitations, departmental rules and regulations, and Section 11 of this MOU.

SECTION 10: COMPENSATORY TIME OFF (CTO)
The maximum (cap) of CTO is (120) hours. Compensatory Time earned in excess of (120) hours will be paid as overtime during the pay period accrued.

SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee, when so appointed, must perform the duties and assume the responsibilities of the higher classification for (80) consecutive working hours and shall be paid according to the step in the assigned salary range of the new position which is a minimum of 5% higher than the salary received before the provisional appointment (not to exceed the top step).

B. When necessary and in the best interest of the City, the City Manager may provisionally assign an employee to a higher level of duty and responsibility than provided for in the employee's assigned classification which is not otherwise a part of an adopted classification. In the case of such an assignment, the employee must perform the higher level of duties for (80) consecutive working hours; thereafter the employee shall receive additional compensation of 5% so long as the assignment is authorized by the City Manager.

SECTION 12: SENIORITY BONUSLONGEVITY PAY
Employees who have achieved (10) years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the l0th anniversary of their employment.

Twenty (20) Years of Service - Employees who have achieved twenty (20) years of uninterrupted employment with the City shall receive a 2.5% increase in base salary (above the previously-described 5% increase at 10 years) effective on the 20th anniversary of their employment.

Ten (10) Years of Service - Employees who have achieved ten (10) years of uninterrupted full-time employment with the City shall receive a 5% increase in base salary effective on the 10th anniversary of their employment.

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Twenty (20) Years of Service - Employees who have achieved twenty (20) years of uninterrupted full-time employment with the City shall receive an additional 5% increase in base salary (above the previously described 5% increase) effective on the 20th anniversary of their employment.

Twenty-five (25) Years of Service - Employees who have achieved twenty-five (25) years of uninterrupted fulltime employment with the City shall receive an additional 5% increase (above the previously described increases) in base salary effective on the 25th anniversary of their employment.

SECTION 13: AUTOMOBILES AND MILEAGE
Employees covered by this MOU, utilizing their privately-owned automobiles for City business on a non-regular basis, shall be entitled to reimbursement for costs incurred at the mileage rate established by the Internal Revenue Service (IRS).

SECTION 14: ADMINISTRATIVE LEAVE
Effective the 1st payroll period in July 2026, and every July thereafter:

A. The Marine Safety Lieutenant and Marine Safety Officers shall be entitled to the equivalent of (2) work days of administrative leave during each fiscal year.

B. Administrative leave hours may not be carried forward to succeeding years nor may they be turned in for cash value.

SECTION 15: LIMITATIONS
A. No employee who is receiving Workers' Compensation payments and benefits is eligible to receive overlapping benefits (except life insurance) stated in this MOU.

B. City shall not make any monthly payments for premiums for any insurance benefit listed in this MOU, or uniform allowance, supplemental pay of any type and/or type of bonus on behalf of or to any employee who has been absent without authorization during entire said month or for any employee who has terminated for any reasons whatsoever or who is on leave of absence without pay of who is suspended from duties without pay for the entire said month.

SECTION 16: DEFERRED COMPENSATION
For the classification of Marine Safety Lieutenant and Marine Safety Officer, the City shall contribute the amount of $40 per payroll period into a deferred compensation program SECTION 17: BILINGUAL COMPENSATION
A. Upon the recommendation of a department director, the City Manager may award a bilingual compensation bonus of $52.50 per payroll period to those employees in positions determined to require bilingual skills.

B. The City Manager shall require the taking of competency tests to certify the employee as eligible for bilingual compensation based on the employee's proficiency in speaking the language determined to be required. Such certification shall be a condition precedent to qualifying for bilingual pay.

SECTION 18: CERTIFICATION PAY
A. Employees who possess and maintain valid certification for CPR/AED/First Aid Instructor, as well as a minimum certification of EMT, will receive $500 annually the first pay day in November.

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B. Employees who possess a United States Coast Guard (USCG) Captains License will receive $250 annually the first pay day in November.

A. Employees who possess and continuously maintain all of the following valid certifications shall receive $175 per month in certification incentive pay:

1. EMT-B

2. SCUBA Certification (NAUI or PADI)

3. Emergency Medical Response Instructor

4. Incident Command System (ICS) 100 and 200
B. Employees who possess and continuously maintain all of the following valid certifications shall receive an additional $85 per month in certification incentive pay:

1. United States Coast Guard Captain's License

2. FAA Remote Pilot Certification (Part 107)
C. Total certification incentive pay under this section shall not exceed $260 per month.

D. Employees must maintain all required certifications within the applicable tier to remain eligible for that tier of certification incentive pay.

SECTION 19: WORK SCHEDULE
A. At the discretion of the City Manager, work schedules may be altered as needed to accommodate service demand levels of the residents of the City of Seal Beach.

SECTION 20: TUITION REIMBURSEMENT
A. Higher Education Degree Programs - Marine Safety Association employees attending accredited community colleges, universities, and trade schools for the purpose of obtaining a higher education degree may apply for reimbursement of tuition, books, student fees and parking. Reimbursement is capped at the tuition rate of the Cal State University system for up to 2 semesters of full-time, undergraduate enrollment each calendar year. B.

Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

Example: Employee A attends California State University, Long Beach, for the Spring 2021 semester and completes 2 (3-unit) undergraduate courses with a grade of "C" or better. The tuition reimbursement would be calculated as follows: 2020/2021 State University Tuition $1,665.00 (0-6 units); Required University Fees $554.00 (approx.); Parking $175.00; Books $535.00 (approx.); TOTAL $2,929.00.

A. Higher Education Degree Programs - Marine Safety Association employees attending accredited community colleges or universities for the purpose of obtaining an eligible higher education degree may apply for reimbursement of tuition, books, student fees and parking. Tuition reimbursement is capped at the 2026 California State University (CSU) tuition rates, not to exceed $3,908 per semester and $7,816 per fiscal year.

B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager.

C. Minimum Service Requirement - An employee must have completed at least one (1) years of continuous employment with the City before becoming eligible to receive tuition assistance. Eligibility shall be determined as of the date the employee's course begins.

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D. Eligible Degree Programs - Tuition assistance may be approved for coursework leading to an associate, bachelor's, or master's degree. Tuition assistance shall not be available for coursework leading to a doctoral or doctorate degree.

E. Benefit to the City - To be eligible for tuition assistance, the coursework or degree program must be reasonably related to the employee's current position, current department, or a position or function within another City department, and must provide a demonstrable benefit to the City. The City shall have sole discretion to determine whether a proposed course or degree program meets this requirement. Approval of a course or degree program shall not guarantee promotion, reclassification, transfer, or appointment to another City position.

F. Tuition Reimbursement Repayment - As a condition of receiving tuition reimbursement, employees hired on or after July 1, 2026, who voluntarily separate from City employment shall reimburse the City for a portion of the tuition reimbursement received as follows:

1. Employees who voluntarily terminate employment within one (1) year from the date tuition reimbursement is paid by the City shall reimburse the City seventy-five percent (75%) of the amount reimbursed.

2. Employees who voluntarily terminate employment more than one (1) year, but within two (2) years, from the date tuition reimbursement is paid by the City shall reimburse the City fifty percent (50%) of the amount reimbursed.

3. No reimbursement to the City shall be required for employees who voluntarily terminate employment more than two (2) years after the date tuition reimbursement is paid.

4. This repayment obligation shall not apply to employees who retire from the City through CalPERS, are separated due to layoff, disability retirement, death, or are otherwise involuntarily separated from employment.

5. Employees employed by the City prior to the effective date of this Agreement shall be grandfathered and shall not be subject to the tuition reimbursement repayment provisions contained herein.

SECTION 21: COMPENSATION PLAN
A. Basic Compensation Plan

1. Employees covered by this MOU shall be included under the Basic Compensation Plan. Every classification under this Plan shall be assigned a salary range adopted by the City Council. The salary schedule shall consist of 5 steps within each range.

2. The first step is a minimum rate and is normally the hiring rate for the classification. An employee may be assigned, upon appointment, to other than the normal entering salary step within the assigned range upon the recommendation of the Department Head and with the approval of the City Manager when it is decided that such action is in the best interests of the City.

3. The second step, B step, is a merit adjustment which may be given at the end of the probationary period subject to the recommendation of the Department Head and with the approval of the City Manager.

4. The third, fourth and fifth steps are merit adjustments to encourage an employee to improve their work and to recognize increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of (1) year of service at the preceding step. Each adjustment shall be made subject to the recommendation of the Department Head and with the approval of the City Manager.

B. Advancement within Salary Ranges

1. In order to properly compensate an employee, advancement in salary shall be based on merit.

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2. Advancement in salary shall not be automatic, but shall depend upon increased service value of the employee to the City.

3. The Department Head and/or the employee's immediate supervisor shall be responsible to evaluate an employee fairly in an unbiased fashion for the determination of job performance. Advancement shall be made only upon recommendation of the Department Head and with the approval of the City Manager.

4. An employee should be reviewed at least once every (12) months from the effective date of his last performance evaluation, special performance advancement or promotion. Nothing contained herein shall restrict the Department Head from denying the increase after evaluation, nor shall it prevent him from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated.

C. Salary Increases

1. Promotional Appointment - When an employee is promoted to a position with a higher salary range, the employee shall be compensated at a step of the salary range assigned to the new position that is closest to providing a 5% salary increase over the base salary received immediately prior to promotion.

2. Temporary Appointment - Employees assigned, in an acting capacity, to a higher classification than the employees' present classification for a period of
not less than 80 consecutive working hours shall be entitled to temporary appointment pay. In addition, employees who are assigned by the department director in writing to regularly scheduled acting assignments of less than 80 hours shall also be entitled to temporary appointment pay. Temporary appointment pay will be retroactive to the first hour served in the higher classification and shall be paid at a rate equal to the first step of the higher classification but in no event shall temporary appointment pay be less than 5% more of the employee's current rate.

D. Salary Decreases - In the case of a demotion of an employee to a classification with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new classification as recommended by the Department Head with the approval of the City Manager. The employee shall retain his previous anniversary date.

E. Adjustments of Salary Ranges - When a salary range for a given classification is revised upward or downward, the incumbents of positions and classifications affected shall have their existing salary adjusted to the same step in the new salary range and their anniversary date shall not be changed.

F. Salary and Benefits on Suspension - During suspension from the City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except he shall not forfeit his medical health plans, including dental, retirement plan, disability insurance or life insurance. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment for loss of income and benefits during the period of suspension.

G. Salary Adjustments During Term of MOU

1. The salary schedule for each position classification affected is hereby determined and established upon adoption by City Council. Salary increases are as follows:

First full pay period in July 2024: Employees shall receive a 2.5% cost of living adjustment.

First full pay period in July 2025: Employees shall receive a 2.5% cost of living adjustment.

Effective the first full pay period in July 1, 2026, employees shall receive a 3% cost of living adjustment.

Effective the first full pay period in July 1, 2027, employees shall receive a 2.5% cost of living adjustment.

Effective the first full pay period in July 1, 2028, employees shall receive a CPI adjustment of not less than 1% and not more than 3%, measured by the change in the Los Angeles-Long Beach-Anaheim All Urban Consumers Index (CPI-U), unadjusted, for the 12 months ending in April 2028 (April 2027 - April 2028 index).

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Wage increases provided under this Agreement shall be made retroactive to the first full pay period in July 1, 2026, provided the Agreement is ratified by both parties and approved by the City Council no later than September 28, 2026.

Mid-Management
Grade Job Classifications
31 Marine Safety Lieutenant
Technical
Grade Job Classifications
23 Marine Safety Officer
H. Non-PERSable Lump Sum Payment During Term of Memorandum of Understanding The City shall make one (1) Non-PERSable lump sum payment of $4,000 (subject to applicable withholdings) prior to January 1, 2025 to each bargaining unit member employed by the City.

H. Salary Study
The City shall complete a salary study for SBMSMA classifications no later than October 2026. The cost of the study shall not exceed $10,000.

SECTION 22: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay

1. Upon the Department Head's recommendation and approval of the City Manager, an employee may be granted a level of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed 180 working days.

2. Upon written request of the employee, the City Manager may grant a leave of absence, with or without pay, for a period not to exceed (1) year.

3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted. Failure on the part of the employee to report promptly at such leave's expiration and receipt of notice to return to duty shall be cause for discharge.

4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except an employee shall receive their monthly flex dollar allowance and the City, as specifically
provided for in this MOU, shall contribute to the employee's disability insurance plan, and life insurance plan for the first (30) days of leave of absence.

B. Bereavement Leave
The City agrees to provide 40 hours bereavement leave with pay for death in the immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. "Immediate family" is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, mother-in-law, father-in-law, domestic partner-in-law or dependent relative living with the employee.

C. Military Leave of Absence
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1. Military leave shall be granted in accordance with the provisions of Federal and State law. All employees entitled to military leave shall give the Department Head an opportunity within the limits of military regulations to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the Department Head of such leave request (10) working days in advance of the beginning of the leave.

2. In addition to the provisions of State law, the City shall continue to provide eligible employees on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first (3) months of military leave. During said period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance (if applicable).

3. After the first (3) months of military leave, the employee may continue said benefits at his cost.

D. Pregnancy Disability Leave of Absence

1. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. The employee may elect to take a lesser period of leave.

2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay.

E. Family Leave - Upon a demonstration of need and subject to the following conditions, an employee may take leave or unpaid leave to care for his newborn
infant, whether through parentage or adoption, or to care for a seriously ill or injured member of the employees "immediate family" as defined in Section 6.

1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City.

2. Requests for family leave must be submitted in writing to the employee's supervisor at the earliest possible date proceeding the time when the leave is to begin.

3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws.

4. In the event of an extended family leave, the employee may be required to periodically report on the status of the situation giving rise to the leave.

5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager consistent with the provisions of State and Federal Family Leave laws.

F. Catastrophic Leave - The purpose of the Catastrophic Leave Pool is to enable full time employees to receive and donate vacation, administrative leave, and CTO leave credits on an hour for hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or a member of their immediate family. Sick Leave is excluded from this program.

The following conditions shall apply to Catastrophic Leave:

1. Catastrophic Leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident.

2. The leave pool shall be administered by the Finance Department.

3. Employees must be in regular full-time appointed positions to be eligible to receive catastrophic leave.

4. Employees receiving Long-Term Disability payments are excluded from receiving catastrophic leave under this program.

5. All donations are to be confidential, between the donating employee and the Finance Department.

6. Employees donating to the pool must have 40 hours of paid leave available after making a donation.

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7. Donating employees must sign an authorization, including specifying the specific employee to be the recipient of the donation.

8. Donations will be subject to applicable tax laws.

9. The availability of Catastrophic Leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee.

10. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician's Statement that the presence of the employee is necessary.

11. Catastrophic Leave due to the illness or injury of the employee will require medical justification as evidenced by a Physician's Statement as to the employee's condition.

SECTION 23: HEALTH WELLNESS PROGRAM (Medical Maintenance Examination & Wellness Program) The City shall reimburse Employee, as a medical benefit, for Employee's actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $550 per fiscal year for the Marine Safety Lieutenant and in an amount not to exceed $450 for the Marine Safety Officer classification, subject to the City's normal reimbursement processes and requirements such expenses. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager or his/her designee.

SECTION 24: MISCELLANEOUS
A. Layoff: The City is to give Association (45) days prior notice before the effective date of any layoffs. During this (45) day period, the City will, upon request, meet and confer on the impact of the layoffs.

B. Physical Fitness Program: The physical fitness program is a voluntary program for all union members utilizing vacation hours as compensation for achieving goals within this program. The details of this program are attached as Exhibit A to this MOU.

SECTION 25: TERM
The Memorandum of Understanding shall remain in full force and effect from July 1, 2024 until midnight June 30, 2026.

The Memorandum of Understanding shall remain in full force and effect from July 1, 2026 until midnight June 30, 2029.

SECTION 26: APPEALS
A. Employees shall be allowed to appeal written reprimands to the Personnel Officer. Such appeals shall be filed within (14) calendar days. The decision of the Personnel Office shall be final.

B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation shall be interpreted to allow employees to present evidence showing the absence was for good cause and that circumstance prevented them from contacting the City.

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SECTION 27: REOPENER
City and Association agrees to reconvene during the terms of this MOU to discuss all fringe benefits, including but not limited to health plans, the implementation of HSA or HRA programs for employee and retiree medical premiums.

SECTION 28: RATIFICATION
This Memorandum of Understanding is subject to approval and adoption by the City Council and ratification by the required number of the duly authorized representatives of the Association. Following such approval and adoption, the Memorandum of Understanding shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council.

IN WITNESS HEREOF, the parties have hereto caused this Memorandum of Understanding to be executed SBMSMA MOU 2026-2029 | NEGOTIATION REDLINE
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EXHIBIT A

SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION

PHYSICAL FITNESS PROGRAM
NOTE: The specific months for the testing is at the discretion of the City Manager or their designee.

INTRODUCTION
The physical fitness program is a voluntary program for all members of the Seal Beach Marine Safety Management Association (SBMSMA). SBMSMA members may receive up to twenty (20) hours of vacation time by meeting the requirements of the test at the end of each six (6) month period. The maximum time each member will be able to achieve is up to forty (40) vacation hours earned annually for as long as the member continues successfully in the program.

ENROLLMENT
To start the program, each member must contact the Physical Fitness Committee and advise them of your intent.

Each member participating will be tested every six months, specifically in the months of December and June. A minimum level has been established for each test. Participants will have to move up a category or reach the maintenance level indicated on each test by age group. At one (1) year and six (6) months, participants will be required to be at the maintenance level. Once the maintenance level has been attained, participants will have to maintain that level on subsequent tests. Testing each six (6) month period will validate the awarding of vacation time. Testing may be conducted during on-duty hours at the Beach Supervisor discretion. The Physical Fitness Committee will perform the testing.

ALLOCATION OF HOURS
Employees will be awarded five hours for successfully completing each test as set forth in TESTING below. No employee shall receive any hours if they fail to meet the minimum standards for at least two of the four tests.

PHYSICAL FITNESS COMMITTEE
The Physical Fitness Committee shall be comprised of board members of the SBMSMA. The Physical Fitness Committee is established to retain administrative control over the program. All committee members shall be active participants in the program. The committee will be responsible for examining problems and disputes that arise from the administration of the program. The committee will be the formal arbitrators on these matters.

REQUIRED TEST
The physical fitness needs of Marine Safety Lifeguards fall into two areas: Cardio Fitness and Strength. The tests outlined below may be modified by the Physical Fitness Committee as necessary. The tests used in this program to evaluate fitness in these areas will be:

Area Tests
Cardio fitness 500 meter swim (October); 1 Mile Beach Run/Pier Swim (April) Strength Push-up; Sit-ups; Pull-ups

MEDICAL COVERAGE
Participation in the program will be on a voluntary basis. Any exercise workouts done under this program, i.e. weightlifting, contact sports, running, etc. would not be covered for benefits under Workers Compensation, the city will not provide blanket coverage for any injury which could conceivably be claimed under the pretext of participation in the Physical Fitness Program.

CARDIO FITNESS TESTS - 500-meter pool swim (October)
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Members will swim 500 meters in a pool measured in yards or meters. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one's aerobic capacity or the ability of the heart and lungs to utilize oxygen.

Rating Time
Excellent 9:15-9:30
Good 9:31-10:00
Fair 10:01-10:30
Poor 10:31-11:00
Very Poor Above 11:01
Maintenance Level Below 10:00
Minimum Level 11:00
CARDIO FITNESS TESTS - 1 mile beach run and a pier swim (June) Members will run 1 mile on the beach and swim 1 length of the pier. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one's aerobic capacity or the ability of the heart and lungs to utilize oxygen.

Rating Time
Excellent 18:00-20:30
Good 20:31-23:00
Fair 23:01-25:00
Poor 25:01-26:00
Very Poor Above 26:00
Maintenance Level Below 25:00
Minimum Level 26:00

STRENGTH TESTS
The body is maintained in a prone position supported by straight arms on the hands and toes. A partner places his/her fist on the ground below the member's chest. The member must always keep his/her back straight and from the up position, lower him/herself to the floor until his chest touches his/her partner's hand and then push to the up position again. The member can rest in the up position. The total number of correct push-ups are recorded and compared to the standards on the chart. This test measures muscle endurance and a low level of muscle endurance indicates an inefficiency in movement and a poor capacity to perform work. This test measures mainly the muscles of both the chest and upper arm which are important in physical demands of swimming and propelling surf craft.

Rating Under 30 30-39 40-49 50+
Excellent 43- 37- 30- 25+
Good 28-42 23-36 20-29 17-24
Fair 20-27 17-22 15-19 12-16
Poor 5-19 3-16 2-14 2-11
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Very Poor 4-below 2-below 2-below 1-below
Maintenance Level 40 35 25 18
Minimum Level 18 15 13 11

PULL-UPS
Members will hold the bar with the palms away from the body. Arms are extended out straight in the beginning position with the feet off the ground. Members must pull his/her body up to a position where his chin is above the bar for one repetition; the total number of correct pull-ups are recorded and compared to the standards on the chart. In lieu of pull-ups, members may choose to do the "Lat Pull". Members are required to pull down seventy percent (70%) of their body weight ten (10) times to achieve maintenance level.

Rating Under 30 30-39 40-49 50+
Excellent 9 & above 7 & above 6 & above 5 & above
Good 8 6 5 4
Fair 6-7 4-5 3-4 2-3
Poor 5 3 2 1
Very Poor 4 & below 2 & below 1 & below 0
Maintenance Level 8 6 5 4
Minimum Level 5 3 2 1

SIT-UPS
Members start by lying on his/her back, knees bent, heels flat on the floor and arms folded across their chest. A partner holds the feet down. In the up position, the officer will touch his/her elbows to his knees and then return to the starting position, not placing their shoulder blades on the ground before starting the next sit-up. This is continuous exercise, no resting. The total number of correct sit-ups is recorded and compared to the standards on the chart. This test measures muscular endurance in the abdominal muscle group, an area of great concern to the sedentary individual. Much evidence exists of the correlation between poor abdominal muscle development, excessive fat tissue and lower back problems.

Rating Under 30 30-39 40-49 50+
Excellent 51 & above 45 & above 40 & above 36 & above
Good 40-50 34-44 27-39 23-39
Fair 35-39 29-33 20-26 16-22
Poor 24-34 18-28 7-19 6-15
Very Poor 23-below 17-below 6-below 5-below
Maintenance Level 45 40 35 30
Minimum Level 30 25 20 15
Agenda Item N

AGENDA STAFF REPORT
DATE: September 14, 2026
TO: Honorable Mayor and City Council
FROM: Patrick Gallegos, City Manager
SUBJECT: Authorizing Submittal for Grant Funding from the Orange County Enhanced Mobility for Seniors and Individuals with Disability (EMSD) Program
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council:

1. Conduct a public hearing to receive input and consider the submittal of a grant application; and,

2. Determine this action is exempt from the California Environmental Quality Act; and,

3. Adopt Resolution 7818 authorizing the application for grant funding from the Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Program.

BACKGROUND AND ANALYSIS:

The City of Seal Beach currently offers a robust transportation program for seniors throughout the community. The program consists of two (2) components that provide services. These two (2) components are Dial-a-Ride and the daily shuttle services. Participants can sign up for both programs with the Community Services and Recreation Department. Currently over 2390 residents are registered to participate in both programs. The only requirements to participate in the program are that individuals must be a resident of Seal Beach and 60 years or older.

The Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Grant Program, administered by the Orange County Transportation Authority (OCTA), provides transportation funding for seniors and individuals with disabilities where public transportation services may not meet their needs. The EMSD Grant Program requires government agencies to hold a public hearing to ensure proposed projects are not duplicated or overlapping in scope. The program also requires a resolution from a governing body to confirm legal authority to submit the application and to meet the required match commitment, which is 20% of operating expenses awarded.