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Staff Report

Simi Valley City Council
October 20, 2025

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Staff Report
Meeting
October 20, 2025
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Simi Valley City Council
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CITY OF SIMI VALLEY

MEMORANDUM

October 20, 2025

TO: City Council

FROM: Office of the City Manager

SUBJECT: CONSIDERATION OF PROPOSED REVISIONS TO THE TERMS AND

CONDITIONS OF THE MEMORANDUM OF UNDERSTANDING WITH
THE SIMI VALLEY POLICE MANAGERS’ ASSOCIATION

STAFF RECOMMENDATION

It is requested that the City Council:

1. Consider the proposed revisions to the terms and conditions of the Memorandum of Understanding (MOU) (Attachment A , page 4) with Police Management employees represented by the Simi Valley Police Managers’ Association (SVPMA) as presented, and allow the public to provide input before making a final determination on the MOU; and

2. Place this matter on the November 3, 2025, City Council meeting agenda for final determination on the proposed MOU.

BACKGROUND AND OVERVIEW

The current MOU with the SVPMA expired on June 30, 2025. The negotiation team and SVPMA employees met and conferred on revised terms and conditions to the current MOU and have reached a two- year agreement with a five percent (5%) salary increase each year over the term of the agreement. In accordance with the adopted Policies and Procedures for Negotiations (Attachment B, page 30), the modified terms and conditions agreed to in a tentative agreement are being presented to the City Council to provide transparency and solicit public consideration and comment prior to placing the matter on the agenda for final approval of the agreement by the City Council , scheduled for November 3, 2025.

The policy goals communicated to the negotiat ions team by the City Council included recognizing employees ’ commitment and dedication to the City by providing a compensation increase, within budget authority , to begin to address salary parity with other local jurisdictions , and to assist with the retention of current employees and recruitment of new employees. Although the salary parity issue was not fully addressed, representatives of the SVPMA worked with the City’s negotiat ion team toward an agreement that would make significant progress toward closing the gap.

AGENDA ITEM NO.

9B

FINDINGS AND ALTERNATIVES
A
s a result of the meeting and conferring process with SVPMA representatives, the proposed agreement focuses on salary increases, salary range adjustments, and enhanced benefits. In addition, clarifying language was added, outdated language was removed, and current practices were updated. The full redlined version of the MOU can be found in Attachment A, however, some of the major changes include:
• T
erm of agreement shall be effective from July 1, 2025 through June 30, 2027. • Effective the first pay period following City Council adoption, a salary increase of

5.5% will be implemented, affecting all pay scales and corresponding pay rates for SVPMA employees.
• Effective the first full pay period that includes July 1, 2026, a 4.5% salary increase will be implemented, adjusting pay scales and corresponding pay rates for each affected employee.
• Elimination of bottom two pay ranges to address compaction issues between Assistant Police Chief and Police Commander.
• The Simi Flex amount will increase to a flat rate of $2,500 per month for the 2026 Plan Year and to $2,600 per month for the 2027 Plan Year, with no changes to the opt-out amount.
• Annual Leave accrual rates will increase by 0.5 hours per pay period at both levels of service (Less than Five Years and Five or More Years). • The list of protected classifications under the Non-Discrimination section has been updated in conformance with current law.
• Removed inactive language pertaining to the compaction rate between top step Police Sergeant and top step Police Commander, as well as modifying the method of increasing base pay on such promotions.
• Updated amounts received by members in the Retiree Health Savings Account section to mirror current practice.

T
he increases negotiated with the SVPMA will be funded out of the General Fund budget.

The table below represents the cost to the City for each year of the agreement.

Funding Source FY 2025-26 FY 2026-27 Contract Total
General Fund $183,135 $305,980 $489,115
The C
ity has maintained a balanced budget and has identified funds to cover the proposed MOU package through FY 2026- 27. It is recommended that the City Council consider the proposed revisions to the terms and conditions of the MOU with the SVPMA and place this matter on the City Council meeting agenda for November 3, 2025, for final determination on the proposed MOU.

T
he following alternatives are available to the City Council:

1. C
onsider the proposed revisions to the terms and conditions of the MOU with the SVPMA as presented, and allow the public an opportunity to provide input prior to making a final determination on the MOU;
2 2. Place this matter on the November 3, 2025, City Council meeting agenda for final determination on the proposed MOU;

3. Based upon City Council review and consideration and/or public comment, vote against the proposed MOU and direct staff to conduct further negotiations;

4. Provide staff with other direction.

Staff recommends Alternative Nos. 1 and 2.

SUGGESTED CITY COUNCIL MOTION

I move to:

1. Consider the proposed revisions to the terms and conditions of the Memorandum of Understanding with the Simi Valley Police Managers’ Association as presented, and allow the public to provide input prior to making a final determination on the MOU; and

2. Place this matter on the November 3, 2025, City Council meeting agenda for final determination on the proposed MOU.

SUMMARY

The current MOU with the SVPMA expired on June 30, 2025. The City’s negotiation team and SVPMA representatives met and conferred on revised terms and conditions to the current MOU, and have reached a two-year agreement with a five percent (5%) salary increase each year over the term of the agreement, among other considerations . It is recommended that the City Council consider the proposed revisions to the terms and conditions of the MOU with the SVPMA and place this matter on the agenda for November 3, 2025, for final determination on the proposed MOU.

____________________________________
Luis Garibay
Assistant City Manager

INDEX Page

Attachment A – Draft Memorandum of Understanding
with the Simi Valley Police Managers’ Association ................... 4

Attachment B– Guiding Principles, Policies, and Procedures for Negotiations with Recognized Employee Organizations ..... 30 3 MEMORANDUM OF UNDERSTANDING

BETWEEN THE

CITY OF SIMI VALLEY

AND THE
SIMI VALLEY POLICE MANAGERS’ ASSOCIATION
April 10, 2023July 1, 2025 through June 30, 2025June 30, 2027
4 ATTACHMENT A

i
PMA MOU 4/10/23 – 06/30/20257/1/25 – 6/30/27 Res. No. 2023-122025-XX

Memorandum of Understanding
Table of Contents

1. Term of Agreement ........................................................................................................... - 1 -

2. Savings Clause ................................................................................................................... - 1 -

3. Maintenance of Benefits ................................................................................................... - 1 -

4. Non-Discrimination ........................................................................................................... - 1 -

5. Time Off for Association Business ...................................................................................... - 1 -

6. Union Activity and Performance Evaluations ..................................................................... - 2 -

7. Forwarding of Withheld Dues ............................................................................................ - 2 -

8. Salary Compensation ......................................................................................................... - 3 -

9. Educational Incentive ........................................................................................................ - 5 -

10. Uniform Allowance ............................................................................................................ - 5 -

11. Health Plans & Flexible Benefits Plan ................................................................................. - 5 -

12. Continuation of Health Plan Coverages .............................................................................. - 7 -

13. Retiree Health Premium Coverage ..................................................................................... - 7 -

14. Life Insurance .................................................................................................................. - 10 -

15. Short-Term/Long-Term Disability Insurance ..................................................................... - 11 -

16. Public Employees' Retirement System .............................................................................. - 12 -

17. Deferred Compensation ................................................................................................... - 14 -

18. Annual Leave .................................................................................................................. - 14 -

19. Compensatory Time ........................................................................................................ - 18 -

20. Overtime ......................................................................................................................... - 18 -

21. Holidays .......................................................................................................................... - 18 - 5 ii
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22. Tuition Reimbursement ................................................................................................... - 20 -

23. Assignment Rotation ....................................................................................................... - 20 -

24. Disciplinary Action ........................................................................................................... - 20 -

25. Grievance Procedure ....................................................................................................... - 20 -

26. Class and Compensation Survey ....................................................................................... - 22 -

27. Working Titles ................................................................................................................. - 22 -

28. Retirement Amenities ...................................................................................................... - 22 -

29. Other Terms and Conditions of Employment .................................................................... - 23 -

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PMA MOU 7/1/20251– 06/30/20273 Res. No. 2022-132025-XX

MEMORANDUM OF UNDERSTANDING BETWEEN THE

CITY OF SIMI VALLEY AND THE SIMI VALLEY POLICE
MANAGERS’ ASSOCIATION (SVPMA)

1. Term of Agreement

This Memorandum of Understanding (MOU) shall be effective beginning on April 10, 2023July 1, 2025 through June 30, 2025June 30, 2027, superseding the prior MOU that would have ended on June 30, 20232025. The specific provisions of this Memorandum of Understanding shall be effective as specified herein.

2. Savings Clause

2022-13
If any provisions of this MOU are held to be invalid or unenforceable by a court of competent jurisdiction, or by State or Federal legislation or initiative or referendum, such provisions will not be deemed valid subsisting except to the extent permitted by law, provided however, that all other provisions of this MOU will continue in full force and effect; and the parties of the MOU will immediately meet and confer to seek appropriate provision or provisions.

3. Maintenance of Benefits

During the term of this MOU, there shall be no changes in wages, hours, and other terms and conditions of employment of the Police Managers Association members except as provided herein or by mutual consent of the parties hereto. The parties agree that consent shall not be unreasonably withheld by either party.

4. Non-Discrimination

2022-13
The SVPMA and the City mutually reaffirm their respective policies of nondiscrimination in the treatment of any employee because of race, color, national origin, religion, sex, gender (including pregnancy, childbirth, breastfeeding or related medical conditions), age (40 or over), disability (mental and physical), marital status, sexual orientation, gender identity, gender expression, creed, ancestry, medical condition, genetic information, Acquired Immune Deficiency Syndrome (AIDS) – acquired or perceived , reproductive health d ecision-making, political beliefs, union activity, LGBTQ identity, military or veteran status, or retaliations for having filed a discrimination complaint.

5. Time Off for Association Business

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2013-60
Upon receipt of at least thirty (30) days advance notice to the Chief of Police, at the option of the SVPMA, one designated representative of the SVPMA shall be afforded up to four (4) working days of paid leave in order to attend a professional police association conference.

The President and Vice President of the SVPMA shall be afforded two (2) hours of paid leave each month to attend to SVPMA business, not counting time spent in formal grievance proceedings, disciplinary proceedings or negotiation sessions with the City. Such paid leave may not be accumulated or be subject to overtime calculations. Additional time to accomplish such SVPMA business, if necessary, may be approved by the Chief of Police.

Upon receipt of five (5) days’ notice to the Chief of Police, or in the case of emergency meetings, twenty-four (24) hour notice, the SVPMA shall be entitled to conduct one monthly membership meeting at any time between the hours of 3:00 p.m. and 8:00 a.m., not to exceed one- and-one-half hours in duration. Members shall be allowed to attend while on -duty, without loss of pay, subject to the needs of the Department.

The City may, under emergency circumstances, take one or all of the following actions: postpone the above leave; request different designates; or deny all such leaves.

6. Union Activity and Performance Evaluations

2022-13
Participation in authorized union activity shall not have a bearing on an employee’s performance evaluation.

7. Forwarding of Withheld Dues

Side Letter dated 1-8-2019
The Association shall provide the City with a list certified by an authorized PMA representative identifying all dues paying members from whose salary or wages the dues deduction is to be made and notify the City within 10 days of any change to the certified list.

The City shall deduct dues from the wages of all PMA dues -paying unit members identified on the most recent certified list of dues paying unit members received from the PMA (taking into account any subsequent modifications received from the PMA).

Should a dues-paying member have insufficient wages for the City to deduct dues, the City will suspend deduction and notify the PMA.

It is agreed that the City assumes no liability on account of any actions taken consistent with this section. The PMA will indemnify the City for any claims made by employees for deductions made in compliance with this section.

Formatted: Tab stops: 6.69", Right
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7.8. Salary Compensation

2023-XX
Effective April 10, 2023with the first payroll following City Council adoption of this MOU, employee salaries shall be increased by five and one-half percent (5.5%) as a cost of living adjustment (COLA) increase following City Council approval .

Retroactively effective two pay periods prior to the COLA described above, the bottom of the pay range for Assistant Police Chief shall be increased by five percent (5%) from $77.6245 to $81.5057 and the bottom of the pay range for Police Commander shall be increased by 17.8682% from $66.1185 to $77.9327. Effective April 8, 2024with the beginning of the payroll that includes July 1, 2026, employee salaries shall be increased by four and one-half percent (4.5%) as a COLA. The hourly salary ranges for Sworn Management -designatedSVPMA positions after these increases shall be as follows:

Eff. Date Job Title Salary Range (Hourly)

TBD (Prior to 1st COLA) Assistant Police Chief $81.5057 - $100.0991 TBD (Prior to 1st COLA) Police Commander $77.9327 - $85.1627

Year 1 COLA Assistant Police Chief $85.9885 - $105.6046 Year 1 COLA Police Commander $82.2190 - $89.8466

Year 2 COLA Assistant Police Chief $89.8580 - $110.3568 Year 2 COLA Police Commander $85.9189 - $93.8897

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2010-41
All Sworn ManagementSVPMA employees shall be placed within the salary range.

Except as provided by City Policy and herein, the position within the salary range shall be determined by merit.

2010-41
Sworn Management SVPMA employees shall be reviewed annually on their respective anniversary date; the City’s merit pay policy shall generally provide for merit salary increases up to 5% for SVPMAManagement employees (not to exceed the top step of the established range for the position classification) on the employee’s anniversary date, based upon continued meritorious and efficient service.

Employees who are on probation will be evaluated a t six months and shall not be eligible for a merit increase. An additional 1% may be granted for exceptional service and work above and beyond the call of duty for a total of 6%.

2010-41
Effective June 24, 1996, Police Commanders who are promoted to the classification of Deputy Assistant Police Chief shall be granted a minimum of five- and-one-half percent (5.5%) increase in base pay , or the beginning rate of the new salary range, whichever is greater. Base pay for purposes of this policy shall include the education incentive pay provided to Commanders.

2018-05
The City agrees to maintain the current compaction rate through June 30, 2021 .

Compaction rate shall be 17.8% and include: base pay, education pay, and POST Advanced pay between top-step Sergeant and top -step Commander. Any upward adjustment triggered by this clause shall be effective between Sergeant and Commander.

Side Letter of Agreement dated 4-3-2019
Police Sergeants who are promoted to the classification of Police Commander shall be granted a minimum of five- and-one-half percent (5.5%) increase in base pay , or the beginning rate of the new salary range, whichever is greater . Base pay for the purposes of determining pay upon promotion within this paragraph shall include the POST incentive pay applied prior to promotion. As of April 3, 2018, the Advanced POST incentive pay of 6% on top of base pay.

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8.9. Educational Incentive

2010-41; 2015-71
Sworn ManagementSVPMA employees who have been awarded a Bachelor of Arts or Science degree shall receive an education incentive of 7% of base salary after providing appropriate verification of a Bachelor of Arts or Science degree.

Effective December 28, 2015, Police Commanders who do not qualify for an educational incentive for a Bachelor’s degree shall be eligible for a 2% educational incentive for possessing a Police Officer Standards and Training (POST) Management Certification. The educational incentives for possession of the POST Management Certification or any Bachelor’s degree may not be combined.

2010-41
Effective July 1, 2002, Sworn Management SVPMA employees who have been awarded an Associate of Arts or Science degree are eligible to receive a 2.5% educational incentive.

9.10. Uniform Allowance

2010-41
Effective July 1, 2002, Sworn Management designatedSVPMA employees shall receive an annual uniform allowance of $1,600. Such allowances shall be for the maintenance and normal replacement of uniforms.

10.11. Health Plans & Flexible Benefits Plan

Dental and Vision2010-41

Effective for the vision insurance due August 1, 2005, theThe City shall contribute up to $19.80 per month for vision care insurance and up to .

2010-41
Effective for the dental insurance premiums due January 1, 2008, the City shall contribute up to $68.94 per month for dental insurance.

CalPERS Medical Insurance2013-60

Effective January 1, 2014, Tt he City will contracts with the California Public Employees’ Retirement System (“CalPERS”) for medical insurance through the Public Employees Medical and Hospital Care Act (“PEMHCA”).

For employees enrolled in a CalPERS plan, the City shall pay the required statutory minimum on behalf of each employee. The minimum contribution will apply only Commented [LG1]: Was this supposed to be crossed out?
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PMA MOU 4/10/23 – 06/30/20257/1/25 – 6/30/27 Res. No. 2023-122025-XX

toward the medical insurance premium for a CalPERS Health plan. If an employee chooses not to enroll in a CalPERS Health plan, the minimum contribution cannot be used for any other purpose.

If CalPERS changes any of the medical insurance plans by either adding to or deleting plan options, employees will be limited to those plan options offered by CalPERS.

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Simi Flex Dollars 2015-71, 2018-05, 2022-13, 2023-XX

Effective with the 2026 Plan Year , Effective for insurance premiums on January 1, 2023 the maximum monthly Simi Flex amounts for employees who are enrolled in a City medical insurance plan are determined as follows:will be $2,500 and will increase to $2,600 for the 2027 Plan Year 2027. Only health and medical -related cafeteria planscosts can be paid out offrom Simi Flex dollars. Any unused Simi Flex will be paid out as cash. The opt out cash option will remain at $335.83 per month should a member not enroll in a CalPERS Health plan.

11.12. Continuation of Health Plan Coverages

Effective August 1, 2001, employees who retire may elect to remain on the City’s dental and vision plans, at the premium rates, subject to the carriers’ terms.

12.13. Retiree Health Premium Coverage

2010-41, 2013-60
The City shall contribute amounts for health premium coverage, under the City's group health plans, for Sworn Management SVPMA employees who retire from the City of Simi Valley after July 2, 1990.

Pursuant to Section 20065.5 of the California Government Code, all references to “spouse,” “surviving spouse,” or “marriage” apply equally to a registered domestic partner or domestic partnership, as defined in Section 297 of the Family Code.

Retiree Medical Reimbursement (20+ Years of Service, Hired Prior to June 21, 2010)

Effective June 21, 2001, for Sworn ManagementSVPMA employees, the City shall contribute the full premium for an amount equal to employee plus -one for 20 years for employees who have between 20 and 25 years of service to the City and lifetime coverage (or until a surviving spouse/domestic partner remarries) for 25 or more years of service to the City.

Service Coverage Benefit (Employee Plus-One)
20 – 24 Years 20 Years
25+ Years Lifetime

Effective June 28, 2004, in the event of the death of a retiree who had elected Option Two under the retiree health coverage options below, the surviving spouse/domestic partner will retain coverage for the remainder of the benefit period selected by the retiree or until the surviving spouse/domestic partner remarries, whichever occurs first as long as the retiree selected to have a survivor benefit under CalPERS retirement options. Effective June 23, 2008, the surviving spouse/domestic partner shall have the option (at the end of his/her then existing health benefit period) of paying for health coverage beyond the benefit provided by the City at the retiree rates. 13 - 8 -
PMA MOU 4/10/23 – 06/30/20257/1/25 – 6/30/27 Res. No. 2023-122025-XX

Spouses/domestic partners may remain on the City’s plan at their expense except in the case of remarriage, in accordance with PEMHCA regulations.

Effective June 23, 2008, in the event of an off-duty or an on-duty death that does not meet the provisions of Labor Code Section 4856, the surviving spouse/domestic partner of a Sworn ManagementSVPMA employee with a minimum of twenty (20) years of service with the City prior to retirement, will be entitled to any medical/dental/vision benefit that the employee would have been eligible for on the date of death. Benefit The benefits will continue until the surviving spouse/domestic partner remarries.

Retiree Health Savings Account

2010-41
Effective June 21, 2010, Sworn Management SVPMA employees hired on or after June 21, 2010 , are no longert eligible to receive current retiree health insurance premium coverage benefits. Instead, they but rather will receive a contribution in the amount of $300570.00 per month, during employment, placed deposited into a retiree health savings account. Sworn Management SVPMA employees hired hired June 20prior to before June 21 , 2010, or before, are not subject to this provision upon promotion.

2020-47
Effective with the first paycheck in April 2021, Sworn Management employees hired on or after June 21, 2010 will receive an additional City contribution of $270.00 per month to the retiree health savings account for a total monthly City contribution of $570.00. At the same time, Sworn Management employees hired prior to June 21, 2010 will begin to receive a City contribution of $270.00 per month ($124.62 bi - weekly) to a retiree health savings account for use towards eligible health expenses as set forth by the IRS.

Retiree Medical Reimbursement ( 10+ Years of Service, Hired on or After June 21, 2010)

Effective June 21, 2010, eligible Sworn ManagementSVPMA employees who retire from the City of Simi Valley may select one of the following options for health care coverage:

Option One

The City shall contribute equal to employee- only coverage for active Sworn ManagementSVPMA employees on the City's group health plan for up to 120 months (10 years) after the date of retirement for employees that who served ten (10) years or more years with the City prior to retirement.

Option Two

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The City shall contribute equal to employee -plus-one coverage for active Sworn ManagementSVPMA employees on the City's group health plan for up to 60 months (5 years) after the date of retirement for employees that who served ten (10) years or more with the City prior to retirement.

Option Coverage
Employee-only 10 Years

2. Employee-plus-one 5 Years

2013-60
Effective January 1, 2014, the City will contractcontracted with the Public Employees’ Retirement SystemCALalPERS for medical insurance through the Public Employees Medical and Hospital Care Act (“PEMHCA”).

For retirees enrolled in a CalPERS plan, the City shall pay the required statutory minimum on behalf of each employee. The minimum contribution will apply only toward the medical insurance premium for a CalPERS Health plan. If a retiree chooses not to enroll in a CalPERS Health plan, the minimum contribution cannot be used for any other purpose.

If CalPERS changes any of the medical insurance plans by either adding to or deleting the plan options described above, retirees will be limited to those plan options offered by CalPERS.

Delay of City Medical Insurance Contribution 2020-47

Effective upon contract adoption for the 2020- 21 fiscal year , Sworn ManagementSVPMA retirees may elect to delay receiving the City medical insurance contribution for up to five years from their separation date , so long as they meet the CalPERS Health Plan requirements.

If the separated employee does not meet the CalPERS Health Plan requirements upon retirement, they will not be eligible for enrollment in the City’s medical insurance plans and will not qualify to receive the City retiree medical insurance contribution.

Retirees may only enroll in the City’s health plans during an open enrollment period, which usually occurs in September/October each year, with an effective date of January 1 of the following year. It is the retiree’s responsibility to enroll in a medical plan during an open enrollment period occurring prior to the deferment deadline in order to begin receiving the City medical insurance contribution. The City will not provide reminders or notices that the deferment period is ending. Retirees who do not enroll in a City medical plan prior to the end of the deferment period will not be eligible to receive any portion of the City medical insurance contribution.

Retiree Dental and Vision Coverage 2018-05

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For retirements effective July 1, 2005 to November 30, 2017, the City will contribute

0.5% of total compensation toward the cost of retiree dental and vision premiums.

Such benefits shall be paid to the extent allowed by the City contribution.

Effective February 1, 2018, for retirements effective December 1, 2017 or later, the City will contribute up to $175 per month toward the cost of retiree dental and vision premiums for retirees and eligible dependents..

13.14. Life Insurance

2010-41
Sworn Management SVPMA employees shall be included in the group term life insurance under the terms of the City's policy. The City shall contribute an amount equal to the monthly premium amount for the designated amount of insurance , including accidental death and dismemberment coverage and dependent life insurance. The amount of accidental death and dismemberment life insurance coverage shall be $101,000.

2010-41
Effective July 2, 1990, the City shall provide coverage in the amount of $5,000 for the employee's spouse/domestic partner and dependents.

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14.15. Short-Term/Long-Term Disability Insurance

2010-41
Effective July 1, 1996, a short-term disability insurance program was implemented to coordinate with the long- term disability insurance program that was in place for Management employees. The short-term disability benefit begins on the 8th day of absence (or first day, if the employee is hospitalized) and continues for 180 days (6 months). The long-term disability policy begins on the 181st day, if eligible.

2010-41
Sworn ManagementSVPMA employees shall be included in the short-term/long-term disability insurance program in accordance with the City's group policy. The City shall contribute an amount equal to the monthly premium for such coverage. Effective July 1, 2005, the monthly benefit for short -term and long- term disability shall be 66- 2/3 percent of salary to a maximum monthly benefit of $9,500 per month.

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15.16. Public Employees' Retirement System

2013-60
Sworn Management SVPMA employees shall be included as members in the California Public Employees' Retirement System (CalPERS) under the provisions of the City's contract with PERS. The City shall pay according to the following provisions:

Employees must participate in the retirement plan for at least five (5) years in order to be vested and eligible for retirement benefits. Minimum retirement age is fifty (50).

2010-41
Effective November 5, 1993, the City amended its contract with the Public Employees' Retirement SystemCalPERS to permit employees to purchase up to four years of service credit for any continuous active military or merchant marine service prior to employment.

Definitions

“Classic Member” is defined by the California Public Employees’ Retirement System (CalPERS) as an employee who has been a member of any public employee retirement system or plan prior to January 1, 2013. An employee is considered a Classic Member if he or she does not meet the definition of a “New Member” as defined by Section 7522.04(f) of the California Government Code.

“New Member” is defined by Section 7522.04(f) of the California Government Code.

Generally, with limited exceptions, a New Member is an employee who is hired on or after January 1, 2013 by a public entity.

The City will provide the following defined benefits for employees:

Tier 1 Classic Member 3% @ 55 Hired prior to 1/1/2013 and reciprocal transfers
Tier 2 New Member 2.7% @ 57 Hired on or after 1/1/2013

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2022-13
A. Classic Tier 1: 3% @ 55 Summary of CalPERS contract provisions:

• One Year Final Compensation - Single Highest Year
• 4 th Level 1959 Survivor Benefits
• Pre-Retirement Optional Settlement 2 Death Benefit
• Military Service Credit as Prior Service
• Public Service Credit for Peace Corps or AmeriCorps Vista Service • Employer Paid Member Contributions reported as earnings

Effective July 1, 2014, Sworn ManagementSVPMA employees in Classic Tier 1 shall contribute three percent (3%) of total pensionable income to their CalPERS retirement plan, which will apply toward the employer portion. Effective July 1, 2014, the base salary of each such employee shall be increased by three percent (3%) to offset a portion of the employee’s retirement contribution.

2015-71
For Classic Tier 1 Members, the City pays nine percent (9%) of the employee’s pensionable income to CalPERS on behalf of the employee. Effective December 28, 2015, the City’s obligation to pay required employee contributions shall be reduced to one-half of the required employee contribution equal to four and one- half percent (4.5%) of the employee’s pensionable income. The City will contribute four and one-half (4.5%) of the employee’s pensionable income, which shall be reported to CalPERS as EPMC (special compensation). Effective December 26, 2016, the City no longer shall be obligated to pay any portion of the required employee contribution and the EPMC (special compensation) will be eliminated. As of December 26, 2016, all employees will be paying 50% of normal cost, as updated by actuarial reports, of their pensionable income towards their pension.

2022-13
B. New Member Tier 2: 2.7% @ 57 Summary of CalPERS contract provisions:

• Three Year Final Compensation - Highest average annual final compensation during a consecutive 36-month period subject to the cap • 4 th Level 1959 Survivor Benefits
• Pre-Retirement Optional Settlement 2 Death Benefit
• Military Service Credit as Prior Service
• Public Service Credit for Peace Corps or AmeriCorps Vista Service

Sworn Management SVPMA employees in Tier 2 shall contribute the PEPRA Member Rate of total pensionable income to their CalPERS retirement plan toward employee portion. New Members are required to contribute at least 50% of the normal costs which are subject to change on an annual basis based on actuarial analysis.

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2010-41
Effective the paycheck of July 10, 1998, the City amended its contract with the Public Employees' Retirement System CalPERS to permit employees to purchase prior years of service credit on a pretax basis.

17. Deferred Compensation

2010-41
Effective July 1, 2002, Sworn Management SVPMA employees are eligible to participate in the City’s 457( b) deferred compensation plan and 401(k) plan, both of which offer Roth options.. The

2010-41
Roth 401(k) option is also available for Sworn Management employees.

2015-71
Effective July 11, 2016, the City will contribute an amount equal to the employee’s voluntary contribution to their 401(k) plan up to $105 per bi -weekly paycheck. This additional consideration eliminates any cell phone reimbursements to Sworn Management Employees.

2018-05, 2022-13
Effective the first paycheck after City Council approval of the 2017 - 2020 MOU, the City will contribute an amount equal to the employee’s voluntary contribution to their 401(k) plan up to $150 per bi-weekly paycheck.

2020-47, 2022-13
Effective with the first pay period after City Council approval of the 2021-2023 MOU, the City will increase the 401(k) non-matching contribution by $200.00 per pay period from $150 per pay period (total non-matching contribution of $350 per pay period) on behalf of each participating employee to the City’s 401k Plan, up to a maximum City contribution of $500.00 per bi-weekly paycheck, which includes both the City’s non- matching and matching contributions.

City Contribution $350 per pay period
City Match Up to $150 per pay period

401(k) contributions for those members covered by the California Public Reform Act (PEPRA) shall be consistent with PEPRA and any other applicable state and federal law and regulations.

18. Annual Leave

2010-41
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Sworn Management SVPMA employees shall accumulate Annual Leave at the following rates:

Years of
Continuous
Service
Effective First Pay
Period of
January 2019After
Adoption of 2025-
27 MOU

5 or more years

273 286 hours
(10.511 per pay
period)

Less than 5
years

208 221 hours
(8.5 per pay period)

The maximum accumulation of Annual Leave for Sworn Management SVPMA employees shall be 800 hours.

2010-41, 2018-05, 2022-13
Conversion to Salary (prior to 12-31-2022)

Effective June 26, 2006, Sworn Management employees may convert accumulated annual leave to salary compensation once per quarter up to a maximum of 580 hours per year.

The City Manager or designee shall determine the dates for conversion of Annual Leave.

Watch Commanders shall be granted Annual Leave consideration separate from Patrol Sergeants.

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2022-13
Conversion to Salary (effective for beginning in the 2023 calendar year) – Employees may convert Annual Leave accumulations to salary in accordance with the terms set forth below. Annual Leave accumulations will be designated on SVPMA members’ pay check stubs in the “Annual Leave” category.

A. Eligibility.

This provision applies only to those employees with one or more years of service with the City as of the first working day of December in the year in which the conversion is requested.

If an employee has not met the foregoing requirements, the employee will not be eligible to make a cash out election.

B. Cash Out Terms.

Employees will have the opportunity to declare their intent to cash out annual leave that will accrue after the election in accordance with the following conditions:

1. No less than 8 hours and not more than 241 hours (for employees with 5 or more years of service) and 176 hours (for employees with less than 5 years of service) of annual leave may be converted to salary during a fiscal year.

2. By December 15 of each year, employees can declare their intent to cash out annual leave that they will earn during the following calendar year. Only annual leave hours accrued in the calendar year for which an election is made may be cashed out. Cash outs for annual leave hours accrued in a prior calendar year are not allowed. For example, elections made by December 15, 2022, shall apply to hours accrued in 2023.

3. There will be two pay out opportunities available to employees. The first pay out date will be the first pay date in July, and the second pay out date will be the first pay day in November, unless mutually agreed to by the parties.

4. Once an election is made, it cannot be rescinded.

5. Cash out amounts will be based on the employee's base hourly rate of pay at the time of the pay out.

Employees will be eligible for partial cash outs if the full amount of hours elected are not available at the elected time of cash out. For example, if an employee elects to cash out 40 hours of Annual Leave, but only 20 hours are available, 20 hour s would be cashed out.
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Employees will be required to complete the City’s standardized Annual Leave Cash Out Form by December 15 of the calendar year prior to the calendar year in which the employee wishes to redeem annual leave hours for cash. Failure to submit an Annual Leave Cash Out Form with an irrevocable election by December 15 of each year shall be the same as not electing to cash out annual leave during the following calendar year.

Annual leave hours used for paid time off will be deducted first from annual leave hours accrued in prior calendar years, and last from annual leave hours accrued in the current calendar year.

C. Exception – Unforeseeable Emergency.

Employees who experience an unforeseeable emergency may elect to cash out annual leave hours , including hours that have accrued. For these purposes, “unforeseeable emergency” means a severe financial hardship to the employee resulting from an illness or accident of the employee, the employee’s spouse, or a dependent of the employee, loss of the employee’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the employee. The amount of the cash out shall be limited to the amount necessary to satisfy the unforeseeable emergency plus an amount necessary to pay taxes reasonably anticipated as a result of the cash- out. Whether an occurrence is an unforeseeable emergency shall be determined by the City in its sole discretion.

D. Reopener.

If it is subsequently determined by the City, the Internal Revenue Service, a court of competent jurisdiction or another governing authority that the leave redemption provisions in place prior to October 2021 or substantially similar, will not trigger constructive receipt of income from accrued leave, the union may, at its sole option, compel the City to reopen negotiations in order to restore the leave redemption provisions in place in October 2021 or something substantially similar that will not trigger constructive receipt of income from accrued leave.

Purchase of Annual Leave – SVPMA employees may convert salary compensation to Annual Leave at a rate of 1 hour of earned salary compensation for one hour of Annual Leave. Employee requests for such conversion shall be implemented each pay period. Employees shall be limited to a maximum annual conversion of 180 hours during each calendar year.

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19. Compensatory Time

2010-41
Sworn ManagementSVPMA employees may roll over compensatory time accrual to annual leave on an hour for hour basis, subject to the Chief of Police’s approval, to a maximum of 800 hours of annual leave.

Sworn Managers working in the capacity of Watch Commander who are called in early or required to work an extended shift will accrue compensatory time or annual leave for each thirty (30) minutes worked. For Sworn Managers called back to work to handle a significant event, special event, major investigation or other police related activity, such employee will accrue compensatory time or annual leave for each thirty minutes worked.

2020-47, 2022-13
Sworn Managers may opt to be paid straight time overtime for each pay period instead of accruing the time to compensatory time or annual leave for each thirty minutes worked.

20. Overtime

2010-41
Effective July 1, 1991, employees in the Police Commander classification shall not receive paid overtime compensation for work outside of the normal schedule.

2018-05
In cases where overtime for Watch Commander is required, any Commander assigned to the Patrol Unit has first right of refusal for the first 24 hours. The second 24 hours shall be available to Police Sergeants as set forth in the Simi Valley Police Officers MOU.

21. Holidays

2015-71
Employees shall receive the following eleven (11) paid ten (10) hour holidays per calendar year, as well as any other days proclaimed by City Council as a public holiday:

1. January 1* – New Year’s Day

2. Third Monday in January – Dr. Martin Luther King, Jr. Day

3. Third Monday in February– President’s Day

4. Last Monday in May – Memorial Day

5. July 4* – Independence Day

6. First Monday in September – Labor Day

7. Veteran’s Day
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8. Thanksgiving Day*

9. Day after Thanksgiving

10. December 24* – Christmas Eve

11. December 25* - Christmas Day

*Special Holiday Pay is applicable, as further described below.

Observance of Holidays – With the exception of Christmas Eve, when a holiday falls on Sunday, the holiday shall be observed by the City on the following Monday; When a holiday falls on a Saturday, the holiday shall be observed by the City on the preceding Friday.

Christmas Eve Holiday – If the December 24 Christmas Eve Holiday falls (1) on a Wednesday, then it will be observed on December 26; or (2) on a Friday, then it will be observed on December 23; or (3) on a Sunday, then it will be observed on December 22.

Holiday Benefit – Employees may either accrue ten (10) hours of annual leave, or be paid ten (10) hours to compensate for each holiday listed above. Each employee must indicate their selected payment method on their timesheet on the date the holiday is observed. Employees must select one payment method per holiday and may not split the ten (10) hours between the two payment methods.

Work on Holidays – With the exception of the Watch Commander, employees are generally required to observe City holidays. If an employee is required to work as determined by the Chief of Police or his/her designee, they may be paid straight time pay for hours worked on the observed holiday (or on the actual holiday for Watch Commander) in addition to their Holiday Benefit.

Special Holiday Pay – In addition to their regular pay, employees shall receive Special Holiday Pay equal to 50% of the employee’s regular rate of pay for hours worked on a holiday where Special Holiday Pay is applicable.

Employees may choose to receive Special Holiday Pay as annual leave accrual, or be paid.

Pensionable Holiday Pay – Additional compensation paid to employees for working on a holiday is not reported to CalPERS as pensionable compensation in all cases.

CalPERS applies state law when determining if holiday pay is pensionable or not.

State law defines pensionable holiday pay as additional compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays . If these employees are paid over and above their normal monthly rate of pay (i.e., Special Holiday Pay, Holiday Benefit) for approved holidays, the additional compensation is reportable to CalPERS.

Employees who work on a holiday that occurs on the regular day off (RDO), or outside of their regular work schedule, may receive additional compensation 25 - 20 -
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for working on the holiday (over and above their normal monthly rate of pay) in accordance with the holiday pay guidelines in this section; however, such compensation is considered overtime because it exceeds the employee’s regular work schedule. Overtime is not considered pensionable and will not be reported to CalPERS as pensionable compensation.

22. Tuition Reimbursement

2015-71
Effective July 1, 2016 , Sworn Management SVPMA employees will no longer be eligible for the City’s Tuition Reimbursement program.

23. Assignment Rotation

2013-60
Duty assignments for Sworn ManagementSVPMA may be rotated at the discretion of the Chief of Police.

24. Disciplinary Action

2010-41
Effective June 26, 2006, counseling memoranda and written reprimands that are at least three years old, and any future counseling memoranda and written reprimands that become three years old, shall at the request of the Sworn ManagementSVPMA employee be sealed. Request should be made to the Deputy Director/ Human Resources Director. Sealed files will be temporarily removed from the employee’s file immediately prior to anyone inspecting the employee’s file, and can be reviewed only by the Deputy Director/Human Resources Director and the City Manager.

25. Grievance Response TimeProcedure

The following series of steps provides a progressive procedure designed to resolve grievances at the lowest supervisory level consistent with justice, fair treatment, and administrative policy.

Step 1. It shall be the responsibility of the employee to promptly inform and discuss any complaint or grievance as defined in this policy with the immediate supervisor. If, after such discussion, the employee does not believe the grievance has been satisfactorily resolved, the employee shall proceed to Step 2 of the grievance procedure. All complaints or grievances shall be resolved in a timely manner. In order for a grievance to be considered as timely, it shall be brought to the immediate supervisor’s attention within 21 calendar days following the act or occurrence upon which the alleged grievance is based. Where the grievance is based upon a recurring action, the grievance shall be brought to the supervisor’s attention within 21 calendar days following the first instance of such recurring action. 26 - 21 -
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Step 2. If the employee and immediate supervisor cannot satisfactorily resolve the complaint or grievance within ten (10) working days after it is brought to the supervisor’s attention the employee may file a written grievance concerning the matter with the Department Head. The employee shall clearly state the basis of the grievance, giving time, place, other persons involv ed, specific policy concerned, and other pertinent information. The Department Head shall, within five (5) working days after receipt of the written grievance, supply an answer in writing to the aggrieved employee, explaining the decision or proposed action.

Step 3. If the employee is not satisfied with the response of the Department Head, the employee may request that the City Manager review the grievance. The employee shall request such review within ten (10) working days after receiving the response from the Department Head. The City Manager shall consider the employee’s written grievance, as submitted to the Department Head, and the Department Head’s written response in reviewing the grievance. The City Manager or designee may request additional information or conduct additional research as appropriate. The City Manager shall release the results of the review within 15 working days after receiving the employee’s request for such review. The results of the City Manager’s review shall be final.

Time Off to Process Grievance. The employee shall be given time off with pay from regular duties, as determined to be necessary and reasonable by the Department Head, for the processing of a grievance.

Extension of Time Limits. The time limits specified in each step of the grievance procedure may be extended by an equal amount of additional time by either party upon verbal or written notice. Further extensions to the specified time periods may be made upon written mutual consent of both parties.

Failure to Appeal Within Time Limit. If the employee fails to file the grievance within the prescribed time limits, without waiver, the employee relinquishes the right to grieve. If management fails to respond to the prescribed time limits set out in the grievance procedure, without waiver, the grievance shall automatically proceed to the next step.

Representation at Hearings. The employee shall be present personally and participate in the discussions and proceedings.

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26. Class and Compensation Survey

2013-60
The City's Human Resources division will complete a Class and Compensation survey using comparable cities (Burbank, Oxnard, City of Ventura, County of Ventura, Inglewood, Monterey Park, Orange, Pasadena, Pomona, Santa Monica, and Torrance) and make a recommendation to the City Council as part of the FY 14- 15 budget to adjust the salary range of Police Commander and Deputy Chief within 1% of the median. If the Council elects not to adjust the salary range for employees in the classification of Police Commander and Deputy Chief, the City agrees to pay overtime at the rate of one and one half the hourly rate effective July 1, 2014, for any Police Commander working a vacant or extended shift in the Watch Commander's office.

27. Working Titles

2022-13
The Chief of Police shall consider the working title conventions of the geographic area or the operational needs of the City in determining the appropriate working titles of police managers. The working title of Commander shall be used for 1 st level sworn
level manager and Deputy Chief or Assistant Chief for 2nd level sworn managers who report directly to the Chief of Police. The working title for 2 nd level managers are considered to be of equal rank respectively. It should be noted that working titles shall be compared to sworn positions with similar responsibilities for the purposes of completing class and compensation surveys.

28. Retirement Amenities

2018-05
Sworn Management SVPMA employees with at least 20 years of experience as a sworn peace officer, 10 of which must have been with the Simi Valley Police Department, may purchase their department -issued firearm for $1 from the City at the time of retirement. The value of the firearm may be taxed if required by federal law.

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29. Other Terms and Conditions of Employment

The remaining terms and conditions of employment for Sworn Management SVPMA employees shall be as provided in the applicable sections of the Employee's Manual or as determined by the City Manager.

For the ASSOCIATION: For the CITY:

Lincoln Purcell Samantha C. Argabrite

John Adamczyk Luis Garibay

29 GUIDING PRINCIPLES FOR NEGOTIATIONS

WITH RECOGNIZED EMPLOYEE ORGANIZATIONS
PURPOSE. The City of Simi Valley values its employees and seeks to provide fair and equitable compensation for each employee group and classification. The following principles are established to guide adoption of compensation plans and contracts covering City employees.

GUIDING PRINCIPLES.
(

1.) Bargaining i n Good Faith – The City re news i ts ongoing commitment to abide by the Meyers -Milias-Brown Act while developing strategies for long term fiscal stability. The City will negotiate in good faith, with the ultimate goal of ensuring long-term fiscal sustainability of employee salaries and benefits. (2.
) Recruitment and Retention – The City’s compensation should, when economically feasible, be structured and provided at levels sufficient to recruit and retain qualified employees who are committed to providing the highest quality service to the community using compensation practices that are competitive with other comparable agencies.
(3.) Fiscal Sustainability – All compensation commitments must take into account the financial ability of the City and be consistent with the principles of fiscal sustainability. The City should be able to meet the cost of any compensation commitment from current and projected on- going City revenues. Contracts, including compensation commitments, should not contain embedded costs and obligations that are difficult for the public to understand/evaluate, or for the City to articulate and sustain long-term.
(4.) Transparency – Compensation for all City employees should be transparent to ensure full public disclosure of all elements of compensation, including all differential and incentive pay and all costs associated with health insurance, retirement, and other post -employment benefits. The City’s compensation structure should be simple and easily understood, and available online. (5.) Compliance with Laws – The City will ensure that its pay practices conform to the Fair Labor Standards Act (FLSA), abide by all requirements of the Meyers -Milias- Brown Act, and comply with other applicable State laws. (6.) Term of Agreements – Generally, the City should seek to negotiate multi -year agreements with recognized employee organizations. However, the City when considering long-term agreements, salary formulae should be based on objective cost of living indicators.
(7.) Priorities – Levels of employee compensation should ensure the City’s long- term success in achieving its core mission, support the City’s ability to continue providing services, programs, and activities that align with the priorities of the public and the City Council, and be consistent with the interests and welfare of the public.
(8.) Management Rights – The City must maintain its management rights to supervise, manage, and direct its workforce. The City should not enter into agreements that contain unreasonable restrictions on the City’s current management rights. (9.) Flexibility – The City should recognize that flexibility may be necessary on the specific elements of the overall compensation package, provided that guiding principles are achieved within budget constraints.
30 ATTACHMENT B

POLICIES AND PROCEDURES FOR NEGOTIATIONS

WITH RECOGNIZED EMPLOYEE ORGANIZATIONS

PURPOSE. The purpose of this policies and procedures document is to set guidelines for staff and the City Council to ensure that all labor negotiations are conducted in good faith, to avoid actions that would hinder the City’s labor negotiation teams, and to provide timely and accurate information about the negotiations to the City Council and the public.

POLICIES AND PROCEDURES.

(1.) Prior to initiation of negotiations, a public meeting shall be held to allow members of the public the opportunity to provide comments on the City’s Guiding Principles, Policies and Procedures, and other labor negotiation recommendations. (2.) Pursuant to Section (3.)(M.) of Resolution 73 -79, the City Manager is the City’s Employee Relations Officer responsible for meeting and conferring in good faith with representatives of formally recognized employee organizations. The City Council may express its views to the City Manager but shall endeavor not to interfere with the execution by the City Manager of his or her authority to negotiate on behalf of the City.
(3.) Pursuant to the Meyers -Milias–Brown Act, all contract negotiations should take place at the bargaining table between the designated representatives of the City and the designated representatives of the various bargaining units. Both the City and the bargaining units have an obligation under applicable laws to negotiate in good faith and, in the spirit of good faith bargaining, should not bypass the negotiating teams.
(4.) Bargaining units should submit their proposals for changes to wages, benefits, terms, and conditions of employment no later than 90 days prior to expiration of the Memorandum of Understanding to encourage a timely conclusion of negotiations.
(5.) Nothing in this policy shall prohibit members of the City Council from listening to bargaining unit representatives or persons acting on their behalf. (6.) Nothing in this policy prohibits the City Manager from requesting the assistance of the City Attorney in carrying out the City Manager’s responsibilities as the Employee Relations Officer.
(7.) Authorization and direction to the City Manager on bargaining parameters shall be provided by the City Council in closed session. In order to retain the integrity of the negotiation process, closed session discussions must remain confidential. (8.) The City Manager shall have a duty to advise the City Council during agendized closed session meetings of offers, counteroffers, information, and/or statements of position discussed by employee organizations and City representatives participating in the bargaining process since the last agendized closed session. (9.) Each Council Member shall disclose publicly during open session, the identity of employee association representatives with whom the Council Member has had any verbal, written, electronic, or other communications regarding a subject matter of a pending meet and confer process.
(10.) Unless mutually agreed to by the City and the bargaining unit representatives, negotiation sessions shall remain confidential.
31 (11.) Upon impasse, the City Manager may provide periodic upd ates on the status of labor negotiations to the City Council in open session. (12.) Upon impasse, bargaining unit representatives or persons acting on their behalf may comment on the City Manager’s open session labor negotiations status update. This shall be done during open session to ensure each of the Council Members receives the same information. The City Council may listen to these statements made in the public forum and may ask questions for clarification purposes, but shall not respond to the comments, or engage in dialogue or any other form of bargaining with the representatives.
(13.) Recognizing there is public interest in transparency regarding compensation practices, recommended labor agreements shall be made available for public review at least 72 hours prior to final approval of an agreement. (14.) The City shall ensure that all compensation packages are fully, accurately, and simply “costed out over time,” with total costs displayed to the public at the time of public review so the public has the opportunity to understand/evaluate the pay at issue.
(15.) The cost measurements shall display the fiscal impacts of the proposed compensation packages. The report shall include all benefit and or pay aspects of each memorandum of understanding.
(16.) Excepting the resolution of any meet and confer impasse, the rendering of a final City Council determination regarding adoption of a memorandum of understanding shall only be undertaken after the matter has been heard at a regular City Council meeting wherein the public has had the opportunity to review and comment on the matter.
(17.) For purposes of agendized closed session meetings outlined in Item 8 above, “information” shall mean salaries, salary schedules, compensation paid in the form of fringe benefits, the City’s available funds, and funding priorities for the purpose of reviewing the City’s position and instructing the City’s labor negotiating team. 32

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