Agenda packet, regular meeting — South Gate City Council, September 23, 2025 (part 2 of 4)

SECTION 2 REPOENERS
The partes do specifically agree to reopen the meet and confer process during the term of this MOU, but no sooner than June 1, 2024, only with regards to the following issues.

These reopeners are not contingent upon the execution of any successor MOU and no successor MOU is contingent upon agreement on these reopeners. The City reserves the right to introduce changes to any other part of the MOU in an effort to come to an agreement on the below stated topic(s) to reopen the meet and confer process.

1. Annual Sick Leave Redemption Program
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Memorandum of Understanding between the City of South Gate and the South Gate Division Management Association
-Signature page-
The City and the Association acknowledge that this Agreement is entered into the 3rd day of September 2025, and is subject to it being executed by authorized representatives.

CITY OF SOUTH GATE:

Maria Davila, Mayor
Date:

ATTEST:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

F. Salinas, City AttorneyRa

SOUTH GATE DIVISION
Glenn Massey, Presid t
TION:

William Cam';ia, Vice Pr'e4
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Attachment E
Contract No

MEMORANDUM OF UNDERST ANDING

BETWEEN THE

CITY OF SOUTH GATE

AND THE

SOUTH GATE

POLICE MANAGEMENT ASSOCIATION
JULY 1, 2025 JUNE 30, 2026

ADOPTED BY RESOLUTION NO
ON
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301

TABLE OF CONTENTS

ARTICLE I GENERAL PROVISIONS
SECTION 1, PREAMBLE
SECTION 2. RECOGNITION
SECTION 3. TERM
SECTION 4. DUES DEDUCTION
SECTION 5. MAINTENANCE OF BENEFITS
SECTION 6. MANAGEMENT RIGHTS
SECTION 7. PROBATION
SECTION 8. PROMOTION
SECTION 9. FEDERAL AND ST ATE LAWS
SECTIONIO. DEFINITIONS . 3
Section 11. ASSOCIATION ACCESS TO NEW EMPLOYEE ORIENTATIONS AND INFORMATION 4
SECTION12. LABORMANAGEMENTROUNDTABLECOMMITTEE............4

ARTICLE II SALARY & ALLOWANCES
SECTION 1. WORK SCHEDULE
SECTION 2. WAGES
SECTION 3. LONGEVITY PAY
SECTION 4. BILINGUAL PREMIUM PAY
SECTION 5. OTHER PAY
SECTION 6. {JNIFORM ALLOWANCE
SECTION 7. PHYSICAL FITNESS
ARTICLE III FRINGE BENEFITS.

SECTION 1. MEDICAL, DENT AL AND VISION INSURANCE ...........................9 SECTION 2, LIFE INSURANCE
SECTION 3. RETIREMENT
SECTION 4. 125 PROGRAM
SECTION 5. PHYSICAL FITNESS MEMBERSHIP
SECTION 6. EDUCATION REIMBURSEMENT
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ARTICLE IV LEAVE POLICIES. 14
SECTION 1.

SECTION 2.

SECTION 3.

SECTION 4,
SECTION 5.

SECTION 6.

SECTION 7.

SECTION 8.

HOLIDAYS

V ACATION LEAVE

SICK LEAVE

ADMINISTRATIVE LEAVE
BEREAVEMENT LEAVE.

FAMILY AND MEDICAL LEAVE ACT
tJNP AID LEAVES OF ABSENCE

JOB RELATED INJURY OR ILLNESS

ARTICLE V GRIEV ANCE PROCEDURES

ARTICLE VI DISCIPLINARY PROCEDURES

ARTICLE VII LAYOFF PROCEDURES
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ARTICLE I

GENERAL PROVISIONS
SECTION 1. PREAMBLE
This consolidated Memorandum of Understanding (hereinafter "MOU" or ",4greement'9 is made and entered into between the South Gate Police Management Association, hereinafter referred to as the "Association," and the management representatives of the City of South Gate, hereina:tter referred to as the "City," pursuant to California Government Code, Section 3500 etseq.

This MOU is a good faith effort by the Association and the City to consolidate decades of individual MOUs and side agreements into this one comprehensive document. It is possible that provisions of the previous MOUs and/or side agreements or related resolutions may have been inadvertently omitted in this comprehensive MOU. Therefore, each party to this MOU reserves its rights to bring to the other party's attention aprovision in aprior MOU or still valid side agreement or resolution that is not included in this MOU. In such case, the parties agree to convene meetings to address the issue and to engage in good faith attempts to reach agreement as to the validity and/or content of any such omitted evidence of terms and conditions of employment. No representation is made that such agreement(s) shall be arrived at.

Additionally, in preparing this comprehensive MOU, it is not the intent of the parties to invalidate terms and conditions of employment that are not set forth in this MOU, but which are referenced in a still valid side agreement or past practice as this term is defined by statutory and case law.

SECTION 2. RECOGNITION
The Association is the duly recognized employee organization for its members employed by the City in an appropriate unit consisting of the classifications of Police Sergeant, Police Lieutenant and Police Captain employed by the City of South Gate Police Department. This unit of representation shall be referred to as the Police Management Unit or the "Unit." SECTION 3. TERM
This Agreement shall be effective from July 1, 2025, through June 30, 2026 (1 year) and shall superseded the SGPMA MOU 2021-2025. The MOU shall become effective only after adoption by the City Council of the City of South Gate following ratification by the members of the Association.

SECTION 4. DUES DEDUCTION
The City will continue automatic payroll deductions for the collection of Association dues and fees throughout the term of this MOU. The Association may request in writing that the City deduct membership dues, initiation fees, and general assessments, as well as payment of any other membership benefit program sponsored by the Association, from the salary or wages of members oftheAssociation. TheAssociationherebycertifiesthatithasandshallmaintainallsuchdeduction authorizations signed by the individual from whose salary or wages the deduction is to be made and shall not be required to provide a copy of an individual authorization to the City unless a dispute l
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arises about the existence or tenns of the authorization. The Association shall also provide the certification of the membership list for deduction purposes to the City on an annual basis or more often as needed. Accordingly, the Association dues shall be deducted on the first paycheck of each month in accordance with City procedures and provisions of applicable law from the salary or wages of each employee whose name is provided in writing by the Association.

The City shall remit the total amount of deductions to the Association within seven (7) calendar days of the date of the deduction. Any changes in the Association dues must be given to the City a minimum of twenty-one (21) calendar days prior to the change to accommodate changes to payroll.

Membership within and/or payment of any dues or fees to the Association shall not be a condition of employment with the City. No individual employee shall be compelled to pay a service fee, agency fee, or any other assessment or payment in lieu of joining the Association.

The Association shall notify the City within twenty-one (21) calendar days of any discrepancy(ies) concerning dues or other payroll deductions pursuant to this Article. If the Association does not notify the City of any discrepancy within twenty-one (21) calendar days, then the City shall be relieved of any further responsibility.

The Association shall indemnify, defend, and hold hari'nless the City for: (i) any claims made by an individual employee relating to deductions made in reliance upon any certification from the Association, and (ii) any liability arising from any claims, demands, or other action relating to the City's compliance with this Article relating to maintenance of membership. However, the Association shall not indemnify, defend, or hold harmless the City for its own errors in administering the dues deductions on behalf of the Association. Any claims, demands, disputes arising from the application or interpretation of this Article shall be filed directly with the Association and shall not be subject to the City's grievance procedures SECTION 5. MAINTENANCE OF BENEFITS
All salaries, benefits and terms and conditions of employment shall remain in fiill force and effect forthe teri'n of this MOU, unless modified herein or by subsequent written agreement of the parties.

SECTION 6. MANAGEMENT RIGHTS
Subject to the provisions of this MOU, the parties do hereby agree and acknowledge that the City shall retain all its usual rights and responsibilities including, but not limited to, those set forth in Section 5 of the Employer-Employee Relations Resolution (ResolutionNo. 4508) or any successor related resolutions agreed upon by the parties.

SECTION 7. PROBATION
All new hires after July 26, 2022 shall be subject to an eighteen (18) month probation period with the exception of lateral hires from another city or county police agency who are required to serve atwelve(12)monthprobation. Promotionalprobationshallbetwelve(12)months. Alateralhire for purposes of this MOU is a peace officer, as defined in California Penal Code §§ 830.1 & 830.2(a)-(c), who has successfully passed probation at another California law enforcement agency, who remains continuously employed as a duly sworn peace officer with a California law enforcement agency from the date of the employment application to the date of appointment as a 2 305
peace officer with the South Gate Police Department, and who applies with a Basic POST Certificate or greater.

SECTION 8. PROMOTION
A. An employee promoted shall be paid at that step in the salary range to which employee is promoted that is closest to and equal or higher than 105% of employee's current salary, not to exceed the highest step in the salary range. The employee shall receive a new salary anniversary date.

B. Specifications for promotional opportunities are on file with the South Gate Human Resources Division.

SECTION 9. FEDERAL AND ST ATE LAWS
It is understood that this MOU is subject to all present and future applicable federal and state laws and regulations, and the provisions herein shall be effective and implemented only to the extent permitted by such laws and regulations. If any part of this MOU is held to be in conflict with such applicable laws and regulations, or otherwise held to be invalid or unenforceable by any tribunal of competent jurisdiction, such part or provision shall be suspended and the remainder of the MOU shall remain in full force and effect.

SECTION 10. DEFINITIONS
A. REGULAR RATE OF PAY. The unadjusted base salary rate as defined in 10(b) below, plus all remuneration paid to the employee, as is required by the federal Fair Labor Standards Act ("FLSA"). For pui'poses of paid sick leave, vacation administrative leave cash-outs, the Regular Rate of Pay shall exclude the ten percent (10%) Longevity Pay increase (increase from 7% to 17%) a Unit member receives upon reaching the begiru'iing of their 27fh year.

B. UNADJUSTED BASE SALARY RATE. The rate of pay described in salary ranges 31, 35, 36 & 37 for the classifications of Sergeant, Lieutenant, Captain, and Captain in Charge. This rate does not include all remuneration paid to an employee and required by the FLSA. See attached Salary Pay Table for the Unadjusted Base Salary Rate.

C. POLICE MANAGER. The term Police Manager as used in this MOU shall refer to all positions and assignments covered by this MOU.

SECTION 11. ASSOCIATION ACCESS TO NEW EMPLOYEE ORIENT ATIONS

AND INFORMATION
The City agrees to provide no less than 10 calendar days' notice to the Association in advance of any new employee orientation(s) and provide the Association access to the orientation(s).

Orientation refers to any onboarding process, whether in person, online or through other means.

In accordance with Government Code Section 3557, access shall be determined by mutual agreement between the City and the Association. Access could be effectuated by representational 3 15't
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attendance or correspondence, although the parties' preference is generally correspondence over representational attendance. The Association shall advise the City reasonably in advance of any orientation as to the type of access requested.

The City agrees to provide the Association with the name, job title, department, work location, work telephone numbers, and work email addresses on file with the City of any newly hired employee within thirty (30) days ofthe date of hire. The City also agrees to provide the Association with a list of the foregoing information for all bargaining unit employees at least once every 120 days at the Association's written request.

SECTION 12. LABOR MANAGEMENT ROUNDT ABLE COMMITTEE At the request of any party and at least proposed by the Personnel Officer on a quarterly basis, the parties shall convene a Labor Management Roundtable Comi'nittee comprising of at least one member of each of the City's recognized labor associations to address issues of concern to all parties and, ifnecessaryto address concerns specific to one association, to convene a subcommittee meeting following the joint Labor Management Roundtable Committee. The purpose of the Labor Management Comi'nittee meetings shall be to discuss issues of interest to employees, issues of interest to management, issues of mutual interest, and to provide insight to all members of planned or proposed changes affecting employee working conditions.

At least one week in advance of the schedule meeting, associations shall provide topics for discussion at the Labor Management Roundtable Committee to permit time for parties to prepare for a discussion; however, members in attendance may bring up any topic for discussion during the meeting. A summary agenda will be provided by management with bullet points of items to discuss, the last of which shall be "discussion of non-agendized matters." Each association is permitted to send at least two members, the preference of which is that the President and Vice President of each association should attend. If it is necessary that additional association members attend, at least one week in advance, the association shall inform the Personnel Officer of that need and Personnel Officer should accommodate any reasonable request based on the articulated need for more than two members of the association to attend.

If, during the Labor Management Roundtable Committee, it becomes apparent that there are issues specific to one association to address with the City separately, the affected association shall request such a meeting, which shall occur immediately following the general session of the Labor Management Roundtable Committee or within one calendar week thereafter, as agreed between the parties.

It is encouraged that any issues that arise involving the Association are addressed as soon as practicable by meeting with the Personnel Officer. It is recognized that most issues can be resolved quickly and informally using this approach rather than waiting for the more formal Labor Management Roundtable Committee to convene.
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ARTICLE II

SALARY & ALLOWANCES
SECTION 1. WORK SCHEDULE
The 3/12.5 and 4/10 work schedules shall be re-evaluated on or about July 1 of each year of the MOU. The City agrees to meet and confer with the Association regarding any proposed changes in the work schedules.

SECTION 2. WAGES
The effective date for any increase in wages to PMA members shall be on the same day that any wage increase is provided under the Police Officers' Association Memorandum of Understanding.

Police Sergeants' salary shall be 16% above the sum of the following: (a) top step base salary for the Police Officer classification; (b) the maximum specialty assignment pay (currently 5.0%); (c) the maximum P.O.S.T. certification pay (currently 1 1.O%); and (d) the longevity pay at level 3 (currently 7%).

Police Lieutenants' salary shall be 16% above that of the Police Sergeant.

Police Captains' salary shall be 12% above that of the Police Lieutenant.

Police Captain in Charge's salary shall be equivalent to that of the Police Captain plus an additional $300.00 per month.

SECTION 3. LONGEVITY PAY
A. Police Managers shall receive Longevity Pay in addition to their base salary rate, per the schedule below:

At the Beginning of the:
7'h year of continuous city service
13f'l year of continuous city service
26 fh year of continuous city service
27"' year of continuous city service
Rate of Longevity Pay
2%
4%
7%
17%
The Longevity Pay indicated above is the base rate percentage that a Police Manager will receive based on their years of continuous service. The percentages are not cumulative and shall not be added together.

The parties agree that Longevity Pay is special compensation and shall be reported as such to the California Public Employees' Retirement System ("CallPERS"), to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1) for employees who are deteri'nined to be "Classic Members" and/or "New Members" within the meaning of the California Public Employees' Pension Reform Act of 2013 and related legislation.
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B. Once a City of South Gate Police Manager lias completed five (5) years of continuous employment with the City, if they had prior full-time continuous service as a peace officer with another law enforcement agency, that previous service time shall be counted towards the years of continuous employment required for the Police Manager to receive Longevity Pay from the City.

Example: South Gate Police Manager has completed 5 years of continuous employment in that capacity with the City and they had one (1) year of prior full-time continuous service as a peace officer with another law enforcement agency, then their continuous years of City service would be credited as totaling six (6) years and would qualify for the first level of Longevity Pay of 2%.

C. PERMISSIBLE UNDER CALPERS
If the ability to provide this benefit ever becomes impennissible by CalPERS, then this benefit will be eliminated and the parties shall prospectively return to the status quo ante.

SECTION 4. BILINGUAL PREMIUM PAY
Police Managers who are proficient in sign language, verbally proficient in Spanish, Korean, or any other language designated by the City, shall receive bilingual premium pay of one hundred twenty-five ($125) per month. This amount shall increase to one hundred ninety dollars ($190) per month effective with the payroll period starting July 30, 2022. Proficiency shall be determined by examinations administered by the Human Resources Division.

The parties agree that Bilingual Premium Pay is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR 571(a)(4) and 571.1(b)(3) for employees who are determined to be "Classic Members" and/or "New Members" within the meaning of the California Public Employees' Pension Reform Act of 2013 and related legislation.

SECTION 5. OTHER PAY
A. POST CERTIFICATION PAY
Effective the first full payroll period in July 2022, Unit members who have obtained or do obtain a POST Supervisory Certificate shall receive $275 per month as POST Certification Pay and retain that pay through any promotion through Association represented classifications.

Effective the first full payroll period in July 2022, Unit employees who have obtained or do obtain a POST Management Certificate shall receive $350 per month as certification pay and retain that pay through any promotion through Association represented classifications.
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The POST Certification Pay provided herein is not cumulative and will not be considered for purposes of calculating pay differentials between Sergeant and Lieutenant, and Lieutenant and Captain.

The parties agree that POST Certificate Pay is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) for employees who are "Classic Members" as outlined in Article III, Section 3(C) and employees who are "New Members" as outlined in Article III, Section 3(D), respectively.

OVERTIME ELIGIBILITY
Police Captains are exempt from the oyertime and other provisions of the FLSA and shall be subject to call and duty at any time without additional compensation notwithstanding the normal work week for the Police Department.

In the event a disaster or state of emergency is declared by (1) the City Council or Director of Emergency Services (City Manager) in accordance with the provisions of South Gate Municipal Code Chapter 7.14 or (2) either by the County of Los Angeles, the State of California, or the federal government, declared disaster and emergency overtime shall be paid at the rate of straight time multiplied by their regular rate ofpay for all time actually worked in excess of forty (40) hours per work week in either pay or compensatory time-off.

COMPENSATORY TIME OFF
In lieu of receiving overtime pay, employees may designate earned overtime hours as compensatory time off. Compensatory time off shall be accrued at time and one-half (1 1/2) the number of overtime hours worked. Employees may accrue Compensatory Time to a maximum of four hundred eighty (480) hours. Compensatory time off may be used in accordance with Police Department regulations and may be converted to cash payment at the discretion of the employee. After receipt of the appropriate completed and signed forms, Finance shall process Compensatory time cash payments during the next scheduled pay period to be included in the Police Manager's regular paycheck.

OVERTIME COURT DUTY

1. Court On Call
Off duty Police Managers assigned to be "On Call" for a court appearance shall be compensated at the rate of three (3) hours at time and one-half (1 IA) the employee's Regular Rate of Pay. On call pay is for any subpoena on a daily basis, not amorning/afternoon basis. If two subpoenas are for the same day, the Police Manager may not receive compensation for being "On Call" on one case while appearing on another court case during the same day. 7 310

2. Court Appearance
Police Managers shall receive time and one-half (11/2) the employee's Regular Rate of Pay for appearing in court while off duty, with a minimum of four (4) hours pay per court appearance. The four (4) hour minimum begins with the start time of the subpoena and ends when the Police Manager is dismissed by the couit, handling district attorney or attorney assigned to the case. Should the time between the start time of the subpoena and the dismissal by the court, handling district attorney or attorney assigned to the case exceed four (4) hours, Police Manager will be paid at time and one-half (l !/i) the employee's Regular Rate of Pay for the actual hours between the subpoena start time and the dismissal time.

DETECTIVES ON CALL
Police Managers assigned as Detectives shall receive two (2) hours of pay at time and one half (1%) their Regular Rate of Pay for each non-work day that they are assigned by the Police Department to be in an On Call status.

ACTING PAY
The City's Acting Pay Procedures are outlined in Section 6.8 of the City's Rules & Regulations for the Administration of Civil Service Procedures, Resolution No. 6377, adopted on June 24, 1997, as amended by Resolution No. 6871, adopted on February 24, 2003, and Resolution No. 7038, adopted on January 11, 2005.

CALL BACK PAY
Police Sergeants and Police Lieutenants who are called back to work by the Police Department shall receive a minimum of three (3) hours of pay at time and one- half (1 M) their Regular Rate of pay. Police Sergeants and Police Lieutenants shall receive the Call Back Pay minimum one time in a twenty-four (24) hour period regardless of the number of times they are called to return to work. A Police Sergeant or Police Lieutenant is entitled to Call Back Pay after the end of the assigned work shift (including any overtime they may have worked), plus an additional thirty (30) minute grace period after their shift ended and after they are no longer on the City's premises. Call Back time begins when the Police Sergeant and Police Lieutenant leaves their home to report directly to work, or if not at home, at such time as they begin to respond to the Police Department's Call Back notification and ends upon the Police Manager being released from duty. Their travel time to return to work shall not exceed thirty (30) minutes.

SECTION 6. UNIFORM ALLOWANCE
The City shall pay to each Police Manager a unifori'n allowance in the amount of $1,000 per fiscal year. Effective July 1, 2022, the City shall pay and report 1/26'h of the Uniform Allowance each pay period, in compliance with CalPERS rules (Circular Letter: 200-050-19) whereby the 8 311
aggregate amount for each pay period is reported within the earned period report (meaning paid out equally across all pay periods in a fiscal year).

The City will not require receipts for uniform purchases. It is however the sole responsibility of the employee to maintain and wear the proper uniform at all times.

The City shall report to CalPERS the uniform allowance for each employee as special compensation in accordance with Title 2, California Code of Regulation, Section 571(a)(5).

Notwithstanding the previous sentence, for "new members" as defined by the Public Employees' Pension Reform Act of 2013, the uniform allowance will not be reported as compensation earnable to CalPERS.

SECTION 7. PHYSICAL FITNESS
Police Managers who pass the Police Department's Physical Fitness "test" in any one of the following areas: (1) cycling, (2) three-mile walk, or (3) one and one-half mile run, shall receive special compensation of $600 each April and October.

The Police Department conducts fitness testing two (2) times a year, usually in April and October.

Scores are based upon the police managers' gender, age and physical fitness test performance.

Police Managers who successfully complete their assigned segment of the "Baker to Vegas Run" are deemed to have passed the test in lieu of taking the fitness test in April of that particular year.

Those Police Managers are still required to participate and achieve a qualifying score to receive the special compensation of $600 in October.

A score of "good" or better shall be deemed a passing score to entitle the recipient to receive the $600 payments described herein. Employee participation in this Physical Fitness Program is voluntary.

The parties agree that Physical Fitness Incentive Pay is special compensation and shall be reported as such to CalPERS, to the extent legally pen'nissible, pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1) for employees who are deternnined to be "Classic Members" and/or "New Members" within the meaning of the California Public Employees' Pension Reform Act of 2013 and related legislation.
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ARTICLE III

FRINGE BENEFITS
SECTION 1. MEDICAL, DENTAL AND VISION INSURANCE

MEDICAL INSURANCE
The City will pay the insurance premium for the CalPERS medical insurance plan and level of coverage (Employee only, Employee +1, or Employee +2 or more) the employee selects, not to exceed the CalPERS Kaiser-Southern California premium for the same level of coverage (Employee only, Employee + 1, or Employee +2 or more).

If an employee selects a CalPERS medical insurance plan and level of coverage that has a higher premium than the Kaiser-Southern California level of coverage, they shall pay the difference in premium. If the employee selects a CalPERS medical insurance plan and level of coverage that has a lower premium than the Kaiser-Southern California level of coverage, the employee shall not receive the difference in premium from the City. The medical insurance carriers, plan benefits, premiums, eligibility and other terms and conditions are determined by CalPERS.

DENTAL INSURANCE
The City will pay 100% of the cost of the City selected-dental PPO insurance plan premium for Police Managers and their eligible dependents

MEDICAL AND DENT AL INSURANCE OPT OUT
Police Managers who waive coverage from the CalPERS medical insurance plans shall receive $360.60 per month to be paid to the employee's deferred compensation plan administered by the City. To be eligible to receive the above dollar amount, the employee must provide proof, as determined by the Personnel Officer, that they are currently enrolled in another comparable medical insurance plan and they shall remain enrolled in a comparable medical insurance plan in the future. If the employee's non-City medical insurance coverage is discontinued, the employee shall immediately provide written documentation to the City's Persoru'iel Officer. A Police Manager whose outside insurance is tertninated may be eligible to enroll in CalPERS subject to then-existing rules.

The City will provide an employee who elects to waive their City dental insurance $17.95 per month as a contribution to the employee's deferred compensation plan.

VISION PLAN
The City will pay 100% of the City-selected vision care premium for the Police Managers and their eligible dependents.
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SECTION 2. LIFE INSURANCE
The City shall provide $5,000 of Ternn Life Insurance and $100,000 Accidental Death and Dismemberment Insurance for all employees represented by the Association until age 65.

SECTION 3. RETIREMENT
Effective the payroll period coi'nunencing July 30, 2022, all "Classic" represented Unit members as defined by CalPERS shall pay an additional 2% towards the member's CalPERS contribution pursuant to California Government Code 20516(a). A Resolution of Intention was adopted at the December 13, 2022, City Council meeting for purposes of amending the City's contract with CalPERS. The Association provided a Certification of Employee Election agreeing to the CalPERS contract change on January 6, 2023 and an Ordinance amending the CalPERS contract was adopted on Febniary 14, 2023. The effective date of the Ordinance will be March 16, 2023, making the City's CalPERS contract amendment effective March 26, 2023.

Effective the first full pay period in July 2024, all "new" or "PEPRA" represented Unit members, as defined by CalPERS, shall pay 2% towards the employer CalPERS contribution as cost sharing to be implemented by a 1% CalPERS contract amendment pursuant to California Governrnent Code section 20516(a) and the other 1% cost sharing being implemented pursuant to Governrnent Code section 20516(f) on an after tax payroll deduction basis. At such time as POA represented members reach an equivalent cost sharing CalPERS contract amendment and that contract amendment is implemented forbothPOA andPMA, the cost sharingpursuantto 20516(f) shall cease and the cost sharing shall be pursuant to Governrnent Code section 20516(a), on a pre- tax basis.

C. For all employees represented by the Association who are "Classic Members" within the meaning of the California Public Employees' Pension Reforin Act of 2013, the City shall provide in its contract with CalPERS the following:

1. 3% at 50 Retirement Forinula

2. Highest Single Year
D. For all employees represented by the Association who are "New Members" within the meaning of the California Public Employees' Pension Reform Act of 2013, the City shall provide the following:

1. 2.7% at 57 Retirement formula (G.C. Section 7522.25)

2. Final Compensation based on the average compensation earnable for the highest consecutive 36-months period. (G.C. Section 7522.32(a)) It
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E. PRE-TAX BASIS
The City shall adopt a resolution pursuant to Internal Revenue Code 414(H)(2) such that, to the extent peri'nitted by law, the retirement contributions herein shall be on a pre-tax basis.

F. RETIREE MEDICAL INSURANCE
For Unit members who retire from tlie City through CalPERS after twenty (20) years or more of sworn service with the City, and who remain so retired under CalPERS, the City shall contribute toward the retirees' CalPERS medical insurance coverage as follows:

Retirees Prior to July 1, 2005
The retiree shall receive a total monthly contribution from the City of $306 for employee only coverage and $518 for 2-party or family coverage.

Retirees on or after July 1, 2005 who were hired prior to December 11, 2012 For retirees that retired on or after July 1, 2005, and for all employees that will retire on or after July 1, 2005 (hereinafter "post-July 1, 2005 retirees") who were hired prior to December 11, 2012, the City's monthly retiree medical contribution shall be increased January 1, 2006 to $613 (equal to the Kaiser 2-party rate). Each January 1, thereafter, the City shall increase the monthly retiree medical stipend of post-July 1, 2005 retirees by the actual increase in the Kaiser 2-party rate, with a maximum yearly increase of five percent (5%).

Retirees who were hired by the City on and after December 11, 2012.

Effective for employees first hired by the City on and after December 11, 2012, the City will reimburse such employee upon retirement for the actual dollar amount for the CalPERS medical insurance coverage they select, not to exceed the amount of the CalPERS Kaiser-Southern California 2-Party medical insurance monthly premium rate in effect on the date of their retirement. The City shall not increase this monthly fixed dollar contribution beyond this amount.

G. DEFERRED COMPENSATION 457 PLAN
Eligible Police Managers participating in the City's deferred compensation program shall receive a "dollar for dollar" match up to $1,200 per calendar year.

SECTION 4. IRS SECTION 125 PROGRAM
The City has established an Internal Revenue Code Section 125 program for employees. The City will pay the fee to administer the Section 125 program up to $6 per month per employee. The Section 125 Program shall consist wholly of money employees elect to contribute pursuant to Internal Revenue Service regulations.
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SECTION 5. PHYSICAL FITNESS MEMBERSHIP
The City will provide each Police Manager a membership at the South Gate Sports Center in the South Gate Park as follows:

1. If the Police Manager resides in the South Gate City limits, they will receive a Family membership at no cost.

2. If the Police Manager resides outside the South Gate City limits, they will receive a membership for themself at no cost.

SECTION 6. EDUCATION REIMBURSEMENT
The City will budget sufficient funds each fiscal year to meet its obligations for all City employees' education reimbursements. Police Managers who meet the terms and conditions of the Education Reimbursement Program including, but not limited to, passing their original probationary period, will be reimbursed as follows:

1. Up to two thousand five hundred dollars ($2,500) per fiscal year for coursework satisfactorily completed at California public colleges and universities which are accredited by an agency recognized by the U.S.

Department of Education or the Council for Higher Education Accreditation. Police Managers who voluntarily terminate service with the City within 2 years of completion of a course must re-pay the City for the unearned portion of the benefit they received on a pro-rata basis (i.e. 1/24f'l for each month short of two years).

2. Up to three thousand dollars ($3,000) per fiscal year for coursework at private colleges and universities which are accredited by an agency recognized by the U.S. Department of Education or the Council for Higher Education Accreditation. Police Managers who voluntarily terminate service with the City within 2 years of completion of a course must re-pay the City for the unearned portion of the benefit they received on a pro-rata basis (i.e. 1/24'h for each month short of two years). 13 t(p'l
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ARTICLE IV
SECTION 1. HOLIDAYS

LEAVE POLICIES
A City designated holiday consists of ten (10) hours. The City will grant one liundred thirty hours (130) of Holiday Leave per year. The following thirteen (13) holidays are recognized by the Parties:

New Year's Day
Martin Luther King's Birthday
President's Day
Cesar Chavez Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving Day
Christmas Day
Holiday Break
January 1-
Third Monday of January
Third Monday of February
Last Monday in March
Last Monday of May
July 4"
First Monday of September
November 11th
Fourth Thursday of November
December 25I'1
Three work days between Christmas and
New Year's
The City will review the holidays above in April of each fiscal year and determine the date each holiday will be observed for the coming fiscal year.

Employees who are scheduled to work on holidays shall take the holiday off at another date to be scheduled by the department as work schedules permit.

City Holiday Leave is not intended to be carried over from one fiscal year to a succeeding fiscal year, except for employees who, at the end of the fiscal year, are out on paid Administrative Leave or an Industrial Injury Leave (Workers' Comp). In those sihiations, the employee can carry over the unused Holiday Leave hours for a period of up to 60 calendar days after they return to work.

Otherwise, any Holiday Leave remaining from the previous fiscal year shall reduce the amount granted for the ensuing fiscal year in an equal amount.

An employee shall not receive compensation for holidays that occur affer his/her separation firom City employment.

SECTION 2. VACATION LEAVE
A. VACATION LEAVE ACCRUAL
Employees shall accrue vacation leave each bi-weekly pay period. Vacation leave accrual shall be pro-rated for a partial pay period of City employment. 14 lt,.=5 317
Beginning of Through end of
Date of Hire 4"1 year
5tli 9"year
10f" 14f'l year
15fh 19f'l year
20Ih 26"1 year
27f" and thereafter
Hours Earned Annually
88 120
160
180
200
o
The City will count prior full-time law enforcement service as a sworn peace officer with another agency towards vacation leave accrual once the employee has been employed by the City for five (5) years.

Lateral peace officers, upon successful completion of the twelve (12) month probationary period, shall be given credit for up to 200 hours of accrued vacation leave they have earned from another p.o.s.'r. recognized Califomia law enforcement agency.

VACATION LEAVE CASH OUT
Association represented employees may request to cash out accrued, unused vacation leave at the employee's Regular Rate of Pay, not to exceed 100 hours in any fiscal year. Beginning in December 2022 for vacation leave to be cashed-out in FY 2023, City shall supply an irrevocable cash out request form to be submitted no later than December 15th for the cash out for the following calendar year. Employees may cash out up to between 0%-50% of their annual accrual in July and the balance in December but only to the extent the employee has accrued, unused vacation leave sufficient to cover the leave cash out request. If the employee's vacation leave balance is less than the amount previously designated, the employee's cash-out will be limited to the amount accrued, unused vacation leave at the time ofthe designated cash out, but must meet the designated cash out by year end. Employees who fail to submit a vacation leave cash out request by December 15th will be precluded from cashing out vacation leave in subsequent calendar year.

VACATION LEAVE ACCRUAL LIMIT
A Police Manager's unused vacation leave shall not exceed a maximum of four hundred (400) hours at any time.

If Police Manager's accrued unused vacation leave reaches the maximum of four hundred (400) hours, they shall cease to accrue vacation leave until such time as the Police Manager's accrued unused vacation leave is reduced below four hundred (400) hours.
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SECTION 3. SICK LEAVE

SICK LEAVE ACCRUAL
Employees shall accrue six (6) hours of sick leave per bi-weekly pay period (total one hundred fifty-six (156) hours per year). Sick leave accrual shall be pro-rated for a partial pay period of City employment. Lateral sworn peace officers, upon successful completion of the twelve (12) month probationary period, shall be given credit for up to 400 hours of accrued sick leave they earned from another p.o.s.'r. recognized California law enforcement agency.

SICK LEAVE ACCRUAL LIMIT
There shall be no limit on the number of unused sick leave hours a Police Manager may accrue at any time.

Upon commencement of an employee's twenty seventh (27I11) year of sworn law enforcement service, the employee's annual accrual of sick leave shall be reduced by

64.5 hours, from 156 to 91.5 hours.

SICK LEAVE CONVERSION
The City shall peri'nit represented Association represented employees who are in the final 3 years of an eligible employee's employment before attaining the Normal Retirement Age as defined by IRS regulations and have 20 or more years with the City to convert accrued unused sick leave prior to retirement for the purpose of maximizing the employee's "Catch Up" contributions to Defened Compensation, as permitted by applicable provisions of the Internal Revenue Code.

The Conversion of accrued unused sick leave hereunder shall be at the employee's Regular Rate of Pay as defined in this MOU. This sick leave conversion to deferred compensation is limited to a maximum of 1200 hundred hours for both conversion to deferred compensation and for cash out upon separation. Any remaining sick leave hours balance above the combined 1200 hour cash out/conversion cap can still be converted to retirement service credit pursuant to Government Code Section 20965 credit to the extent this benefit remains part of the City's CalPERS contract.

Employees hired by the City after July 30, 2022, shall not be entitled to convert sick leave to deferred compensation or cash out but may still convert unused sick leave to service credit pursuant to Government Code Section 20965 to the extent this benefit remains a part of the City's CalPERS contract. Recruits in the Academy are not deemed employees for this purpose. Any represented employee that dies prior to retirement shall have their sick leave paid to their beneficiary if the employee has 20 or more years of service at the time of death or if the death was work related.

SICK LEAVE CASH OUT UPON SEP ARATION
Association represented employees hired prior to July 1, 1993 shall be permitted to cash out an unlimited number of accrued unused sick leave hours. 16 t(pl
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Association represented employees hired on or after July 1, 1993, but prior to August 1, 2022, shall be permitted to cash out a lifetime maximum of twelve hundred (1200) accrued unused sick leave hours. Cash out of accrued unused sick leave hours shall be at the employee's Regular Rate of Pay as defined in this MOU.

This sick leave casli out upon separation is limited to a maximum of 1200 hundred hours for both cash out upon separation and conversion to deferred compensation.

Any remaining sick leave hours balance above the combined 1200-hour cap can still be converted to retirement credit to tlie extent this benefit remains part of the City's CalPERS contract. Employees hired after July 30, 2022, shall not be entitled to convert sick leave to deferred compensation or cash out. Recruits in the Academy are not deemed employees for this purpose.

Payment to Police Managers for accrued unused sick leave shall be according to the following:

1. 15 - 19 years of City employment
50% of eligible accrued unused sick leave.

2. 20 years or more of City employment
100% of eligible accrued unused sick leave.

SECTION 4. ADMINISTRATIVE LEAVE
Police Lieutenants and Captains earn Administrative Leave in recognition for time worked after regular shift on projects and/or community events, and shall be expected to attend cornrnunity events. Administrative leave accrual shall be pro-rated for a partial pay period of City employment.

Police Captains shall accrue eighty (80) hours of Administrative Leave per year.

Police Lieutenants shall accrue forty (40) hours of Administrative Leave per year.

Payout is only available upon termination for the administrative leave balance at the time of termination and at the unadjusted base rate identified in the attached salary pay tables. There shall be no ability to cash out any unused leave accruals during employment.

SECTION 5. BEREAVEMENT LEAVE
Employees shall be allowed time off for the death of an immediate family member, which may be taken any time within ninety (90) days of the family member's passing. This time may be taken non-consecutively at the discretion of the employee. The term "irnrnediate family" is defined as the spouse, domestic partner, child, parent, sibling, grandparent, grandchild, or parent-in-law of the employee or other person as approved by the City Manager or his/her designee. 17 1k8
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Upon providing documentation of the death of an imi'nediate family member, the employee shall be entitled to forty (40) hours of bereavement leave, not cliargeable to any other leave. If an employee does not provide documentation of death, the employee's time off shall be chargeable first as sick leave and then to any other remaining, accrued leave balance. If the employee uses the bereavement leave consecutively and wishes to extend that leave to another forty (40) hours, he/she may take such additional consecutive leave chargeable as sick leave.

Documentation of death must be provided within 30 days of the first day of the employee's bereavement leave. Such documentation includes, but is not limited to, a death certificate, obituary, or written verification of death, burial, or memorial service from a mortuary, funeral home, burial society, crematorium, religious institution, or governrnent agency. The City shall keep this documentation confidential and shall not disclose it except as necessary to internal personnel or counsel, or if required by law. Failure to provide documentation will result in any time off to be charged against the employee's sick leave and then to any other remaining, accrued leave balance, SECTION 6. FAMILY AND MEDICAL LEAVE ACT (FMLA)
Pursuant to State & Federal law, the City will provide family and medical care leave to eligible employees. The following provisions set forth employees' rights and obligations with respect to FMLA/CFRA-covered leave. Rights and obligations which are not specifically set forth below are set in the Department of Labor regulations implementing the Federal Family and Medical Leave Act of 1993 (FMLA), and the regulations of the California Fair Employment and Housing Comi'nission implementing the California Family Rights Act (CFRA). Unless otherwise provided by this section, "Leave" under this provision shall mean leave pursuant to the FMLA and CFRA.

A. Amount of Leave: Eligible employees are entitled to a total of 480 hours of leave during any 12-month period. An employee's entitlement to leave for the birth or placement of a child for adoption or foster care expires 12 months after the birth or placement.

B. The 12-month period for calculating leave entitlement will be a "rolling period" measured backward from the date leave is taken and continues with each additional leave day taken. Thus, whenever an employee requests leave, the City will look back over the previous 12-month period to determine how much leave has been used in determining how much leave a member is entitled to.

SECTION 7. UNPAID LEAVES OF ABSENCE
A leave of absence without pay which is not covered by state or federal law may be granted only in those cases where an ennployee's record of service makes it desirable for the City to recognize such service, even at the cost of some inconvenience to the City. The factors which will be considered in evaluatingrequests forunpaid leaves of absence include, but are not limited to, whetherthe employeehas accnued paid leaves, and prior discipline and counseling received by the employee. 18 lt'l
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The employee shall submit a written request for an unpaid leave of absence to the Police Chief In the exercise of his discretion, the Police Chief shall approve or deny an application, and shall notify the employee in writing.

A leave of absencewithoutpayup to ninety(90) calendardays in any one calendaryearmay be granted by the Police Chief and the Personnel Officer. A leave of absence without pay in excess of ninety (90) calendar days must be approved by the Personnel Officer.

Leaves of absence without pay, other than for illness or injury, may not exceed one hundred eighty (180) calendar days during any three (3) calendar year period. The Police Chief and the Personnel Officermay grant an unpaid medical leave of absence for a maximum period of one (l) year for a bona fideillness orinjury. Beforebeing granted anunpaidleave ofabsencedueto illness orinjury, anemployee must utilize all sick leave; andmay, but shall not be required to, use vacation leave.

In the event that an employee has no eligible leave to cover an absence from work, authorized or unauthoied, the Police Chief and the Personnel Officer may approve the short-tetm leave with due consideration of the employee's work record.

In the event an unpaid leave of absence does not resultin a break in service, the employee's Annive.iaty Date forpurposes of salary step ingeases shall be delayed forthe period of absence; and during the period of absence the employee shall not accnie other benefits, such as, but not limited to seniority, vacation leave, holiday leave, and sick leave.

SECTION 8. JOB RELATED INJURY OR ILLNESS
Employees in the Unit are eligible to receive continuation of salaiy and benefits in accordance with Labor Code section 4850.
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ARTICLE V

GRIEV ANCE PROCEDURES
The City's Grievance Procedures are outlined in Section 12 of the City's Rules & Regulations for the Administration of Civil Service Procedures, Resolution No. 6377, adopted on June 24, 1997, as amended by Resolution No. 6871, adopted on February 24, 2003, and Resolution No. 7038, adopted on January 11, 2005.

The parties agree to retain the services of an Administrative Law Judge (ALJ) through the Office of Administrative Hearings (OAH) to conduct Step 4 Grievance review and provide a written decision in place of the City's Civil Service Commission, with all other aspects of the grievance hearing remaining the same. Tlie City and the Association shall share the costs of using the ALJ and OAH equally, with each side paying their share as and when required by the neutral, third- party or the OAH. If either party wishes to have a court reporter document the proceedings, then that party shall bear the cost of such court reporter. In the event that both parties wish to have a court reporter document the proceedings, then the parties shall split the cost of such court reporter.

Absent alternative agreement between the parties, each party shall bear the costs of any transcript(s), if requested.
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ARTICLE VI

DISCIPLINARY PROCEDURES
The City's Disciplinary Procedures are outlined in Section 11 of the City's Rules & Regulations for the Administration of Civil Service Procedures, Resolution No. 6377, adopted on June 24, 1997, as amended by Resolution No. 6871, adopted on February 24, 2003, and Resolution No. 7038, adopted on January 11, 2005.

The parties agree to retain the services of an Administrative Law Judge (ALJ) through the Office of Administrative Hearings (OAH) to conduct the disciplinary action appeal and provide a written decision in place of the City's Civil Service Cominission, with all other aspects of the disciplinary hearing remaining the same. The City shall bear the costs of contracting with OAH and using the ALJ. City shall also bear the cost of any court reporter, transcripts or similar recording. No employee shall ever be required to pay any cost of a disciplinary appeal except for their own representation and/or legal counsel.
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ARTICLE VII

LAYOFF PROCEDURES
SECTION 1. LAYOFF PROCEDURES

1.1 Layoff
The City Council or City Manager may separate any employee or class of positions without prejudice, because of financial or economic condition of the City, reduction of work, or abandonment of activities. If the reduction in force is necessary for economic reasons, as a general law city, the City shall observe the seniority rule per Government Code Section 45100 in putting the reduction into effect. The City shall give employees covered by this MOU not less than fifteen (15) calendar days advance notice of lay-off and the reason therefore. However, no full-time employee shall be separated from a department while regular part-time or hourly employees are serving in the same positions in the department.

1.2 Bumping Rights
The employee laid-off shall be entitled to bump to the position in a class in which they currently or formerly held a permanent appointment and in which there is an employee with less seniority in the class, if physically and mentally able to perform the duties of the former class. After the City has notified the affected employee and also the position available to the employee, if any, to bump, they must notify the Persoru'iel Officer of their intent to exercise the bumping rights within fourteen (14) calendar days of the position and classification in the City which they intend to bump, or the bumping rights shall be barred and waived to the employee. The employee with the least seniority in the class shall be bumped by the person who is laid off. The employee bumped shall be considered as laid-off for the same reason as the person who bumped them and shall in the same manner be eligible to bump to a position in a class within the City in which they formally had a permanent position.

1.3 Appointment of Laid-Off Employees to Lower Class The City Manager may approve the appointment of an employee who is to be laid- off to an existing vacancy in a lower class for which they are qualified without requiring an examination, provided the appropriate appointing authority so appoints.

1.4 Applicability
These provisions shall apply to all classified positions but shall not apply to unclassified, probationary, hourly, and temporary positions. 22 ll"->
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1,5 Lay-off List
The lay-off list shall consist of those employees laid-off in the classification ranked in order of seniority. If there is a classification of a lower rari in the same classification series as the position from which the employee was laid-off, that employee's name shall be placed on the lay-off list for each such lower ranked classification.

A laid-off employee shall retain re-employment rights to the classification from which they were laid-off inespective of their acceptance of reemployment at a lesser rank.

1.6 No Probation and Evaluation of Bumped Employee Employees who bump or are bumped shall not be required to serve a probationary period and shall be evaluated using the same criteria and process as other fully vested and tenured employees.

The City's labor relations representatives and the Association's representatives have met and conferred in good faith on wages, hours and other terms and conditions of employment for the Unit members represented by the Association and have reached agreements which are set forth in this MOU. This MOU, when executed by the City labor relations representatives and the Association representatives, constitutes a joint recommendation therefrom, after ratification of the Association membership, to be submitted to the City Council for its determination and approval by resolution, as the City Council may deem fit and proper. This MOU is of no force or effect unless or until approved and adopted by a resolution of the City Council. [Signatures on Next Page]
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Memorandum of Understanding behveen the City of South Gate and the South Gate Police Management Association
-Signature page-
The City and the Association aclaiowledge that this Agreement is entered into as of the 4f'l day of September 2025 and is subject to it being executed by authorized representatives.

CITY OF SOUTH GATE: SO[TTH GATE POLICE
MANAGEMENT ASSOCIATION:

BY:

Maria Davila, Mayor
B7:

Carlos Corella. President
Date:
os Gonzal Va adent
Date: 67-s+>r-ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

F. Salinas, City Attorney
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Attachment F
Contract No.

MEMORANDUM OF UNDERST ANDING

BETWEEN THE

CITY OF SOUTH GATE

AND THE

SOUTH GATE

POLICE OFFICERS' ASSOCIATION
JULY 1, 2025 JUNE 30, 2026
ADOPTED BY RESOLUTION NO.

ON
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TABLE OF CONTENTS

ARTICLEI GENERAL PROVISIONS
SECTIONI. PREAMBLE
SECTION 2. RECOGNITION [92/93]
SECTION 3. TERM.

SECTION 4. DUES DEDUCTION [17/21]
SECTION 5. MAINTENANCE OF BENEFITS [05/08]
SECTION6. MANAGEMENTRIGHTS.

SECTION 7. PROBATION.

SECTION 8. PROMOTION
SECTION 9. FEDERAL AND STATE LAWS [03/04]
SECTION 10. DEFINITIONS
SECTIONII. ASSOCIATION ACCESS TO NEW EMPLOYEE
ORIENTATIONS AND INFORMATION [17/21] . . ... .. 4
SECTION12. LABORMANAGEMENTROUNDTABLECOMMITTEE.........4-5 ARTICLE II SALARY & ALLOWANCES .. . . . 6
SECTION 1. WORK SCHEDULE . . . . . . .. . . .. . . . . 6 SECTION 2. WAGES [17/21] . . . . . . .. . . . . , , ,,, , ,, 6 SECTION 3. LONGEVITY PAY . . . . . . . . . .. . . . 6-6 SECTION4. BILINGUALPREMIUMPAY[92/93;05/08;17/21]..........................7 SECTION 5. OTHER PAY . . . 8-11
SECTION 6. UNIFORM ALLOWANCE . . . . . . . . . . . .. . 11 SECTION7. PHYSICALFITNESS[84/86;87/89] 11-12
SECTION 8. SALARY STEP INCREASE .. . . .. .. . . 12
13ARTICLE III FRINGE BENEFITS
SECTIONI. MEDICAL,DENTALANDVISIONINSURANCE.........................13 SECTION2. LIFEINSURANCE[86/87;97/00] . . . . .. ... ...14 SECTION3. RETIREMENT . . . . . . . .. . .. . . . ..14-15 SECTION 4. SECTION 125 PROGRAM [90/91] . . . . . . . ... . 15 SECTION 5. PHYSICAL FITNESS MEMBERSHIP [84/86] . .. .. 16 \1'7
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SECTION 6. EDUCATION REIMBURSEMENT 16
ARTICLE IV LEAVE POLICIES 17
SECTION 1. HOLIDAYS [94/97] 17
SECTION 2. VACATION LEAVE. 17-19
SECTION 3. SICK LEAVE 19-20
SECTION 4. BEREAVEMENT LEAVE.

SECTION 5. FAMILY ANDMEDICALLEAVE ACT(FMLA)......................21 SECTION 6. {J1STPAID LEAVES OF ABSENCE ..21-22
SECTION 7. JOB RELATED INJURY OR ILLNESS.

ARTICLE V GRIEV ANCE PROCEDURES 23

ARTICLE VI DISCIPLINARY PROCEDURES
ARTICLE VII LAYOFF PROCEDURES .23 -25
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ARTICLE I

GENERAL PROVISIONS
SECTION 1. PREAMBLE
This comprehensive Memorandum of Understanding (hereinafter 'MOU" or ".Agreemerxt") is made and entered into between the South Gate Police Officers' Association, hereinafter referred to as the "Association," and the City of South Gate, hereinafter referred to as the "City," pursuant to California Government Code, Section 3500 et seq.

This Agreement is a good faith effort by the Association and the City to consolidate decades of individual MOUs and side agreements into this one comprehensive document. It is possible that provisions ofthe MOUs and/or side agreements orrelated agreements may have been inadvertently omitted in the comprehensive MOU. Therefore, each party to this MOU reserves its rights to bring to the other party's attention a provision in a prior MOU or still valid side agreement or resolution that is not included in this MOU. In such case, the parties agree to convene meetings to address the issue and to engage in good faith attempts to reach agreement as to the validity and/or content of any such omitted evidence of ten'ns and conditions of employment. No representation is made that such agreement(s) shall be arrived at.

Additionally, in preparing this MOU, it is not the intent of the parties to invalidate terms and conditions of employment that are not set forth in this MOU, but which are referenced in a still valid side agreement or past practice as this term is defined by statutory and case law.

The sections described herein may reference dates in parentheses. Those dates are indicative of the particular MOU or side agreement from which the substance of the section is derived. Said dates are included for reference purpose only.

SECTION 2. RECOGNITION [92/93]
The Association is the duly recognized employee organization for its members employed by the City in an employee group defined by Resolution No. 4508 (Employer-Employee Relations Resolution) (Section 8.2.1) ofthe City Council of the City of South Gate as: "All sworn employees in the Police Department except Management and Confidential Employees." SECTION 3. TERM [17/21]
This Agreement shall be effective from July 1, 2025, through June 30, 2026 (l year) and shall supersede the SGPOA MOU 2011-25. The MOU shall become effective only after adoption by the City Council of the City of South Gate following ratification by the members of the Association.

SECTION 4. DUES DEDUCTION [17/21]
The City will continue automatic payroll deduction for the collection of Association dues throughout the term of this MOU. The Association may request in writing that the City deduct membership dues, initiation fees, and general assessments, as well as payment of any other SGPOA MOU 2025-26 1
331
me'i'nbership benefit program sponsored by the Association, from the salary or wages of members oftheAssociation. TheAssociationherebycertifiesthatithasandshallmaintainallsuchdeduction authorizations signed by the individual from whose salary or wages the deduction is to be made and shall not be required to provide a copy of an individual authorization to the City unless a dispute arises about the existence or ten'ns of the authorization. The Association shall also provide the certification of the membership list for deduction purposes to the City on an annual basis or more often as needed. Accordingly, the Association dues shall be deducted on the first paycheck of each month in accordance with City procedures and provisions of applicable law from the salary or wages of each employee whose name is provided in writing by the Association.

The Association shall indeinnify, defend, and hold harmless the City for: (i) any claims made by an individual employee relating to deductions made in reliance upon any certification from the Association, and (ii) any liability arising from any claims, demands, or other action relating to the City's compliance with this Article relating to maintenance of membership. However, the Association shall not indemnify, defend, or hold harmless the City for its own errors in administering the dues deductions on behalf of the Association. Any claims, demands, disputes arising from the application or interpretation of this Article shall be fixed directly with the Association and shall not be subject to the City's grievance procedures SECTION 5. MAINTENANCE OF BENEFITS [05/08]
All salaries, benefits and terms and conditions of employment shall remain in full force and effect for the term of this Agreement, unless modified herein or by subsequent written agreement of the parties.

SECTION 6. MANAGEMENT RIGHTS
Subject to the provisions of this Agreement, the parties do hereby agree and acknowledge that the City shall retain all its usual rights and responsibilities including, but not limited to, those set forth in Section 5 of the Employer-Employee Relations Resolution (Resolution No. 4508).

SECTION 7. PROBATION
All new hires after July 26, 2022 shall be subject to an eighteen (18) month probation period with the exception of lateral hires from another city or county police agency who are required to serve atwelve(12)monthprobation. Promotionalprobationshallbetwelve(12)months. Alateralhire SGPOA MOU 2025-26 2
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for purposes of this provision is an officer, as defined in California Penal Code §§ 830.1 & 830.2(a)-(c), who has successfully passed probation at another California law enforcement agency, who remains continuously employed as a duly sworn peace officer with a California law enforcement agency from the date of the employment application to the date of appointment as a peace officer with the South Gate Police Department, and who applies with a Basic POST Certificate.

SECTION 8. PROMOTION
A. An employee promoted shall be paid at tliat step in the salary range to which employee is promoted that is closest to and equal or higher than 105% of employee's current salary, not to exceed the highest step in the salary range. The employee shall receive a new salary anniversary date.

B. Specifications for promotional opportunities are on file with the South Gate Human Resources Division.

SECTION 9. FEDERAL AND ST ATE LAWS [03/04]
It is understood that this MOU is subject to all present and future applicable federal and state laws and regulations, and the provisions herein shall be effective and implemented only to the extent permitted by such laws and regulations. If any part of this MOU is held to be in conflict with such applicable laws and regulations, or otherwise held to be invalid or unenforceable by any tribunal of competent jurisdiction, such part or provision shall be suspended, and the remainder of the agreement shall remain in full force and effect.

SECTION 10. DEFINITIONS
A. REGULAR RATE OF PAY. The unadjusted base salary rate as defined in 8(b) below, plus all remuneration paid to the employee, as is required by the FLSA. For purposes of sick leave and vacation leave cash-outs only, the Regular Rate of Pay shall exclude the additional ten percent (10%) Longevity Pay increase (increase from 7% to 17%) a Police Officer receives upon reaching their 27th continuous year.

B. UNADJUSTED BASE SALARY RATE. The rate of pay described in salary range 28, salary steps A-E, for the classification of Police Officer and persons in the Police Officer classification represented by the Association. This rate does not include all remuneration paid to an employee and used in the Fair Labor Standards Act (FLSA).

C. POLICE OFFICER. The teri'n Police Officer as used in this MOU shall refer to all positions and assignments covered by this MOU.

SGPOA MOU 2025-26 3
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SECTION 11. ASSOCIATION ACCESS TO NEW EMPLOYEE ORIENT ATIONS AND INFORMATION [17/21]
The City agrees to provide no less than 10 calendar days' notice to the Association in advance of any new employee orientation(s) and provide the Association access to the orientation(s).

Orientation refers to any onboarding process, whether in person, online or through other means.

In accordance with Government Code Section 3557, access shall be determined by mutual agreement between the City and the Association. Access could be effectuated by representational attendance or correspondence, although the parties' preference is generally correspondence over representational attendance. The Association shall advise the City reasonably in advance of any orientation as to the type of access requested.

The City agrees to provide the Association with the name, job title, department, work location, work, home, and personal cellular telephone numbers, personal email addresses on file with the City, and home address of any newly hired employee within thirty (30) days of the date of hire.

The City also agrees to provide the Association with a list of the foregoing information for all bargaining unit employees at least once every 120 days at the Association's written request, Notwithstanding the foregoing, in accordance with Governrnent Code Section 6254.3(a)(3), the City will not provide the Association with the home address or any phone number on file with the City of any employee performing law enforcement-related functions. For purposes of this MOU, "law enforcement-related functions" includes any City police officer. In accordance with Government Code Section 6254.3(c), the City will not provide the Association with any home address, home telephone number, personal cellular telephone number, or personal email address of any employee who has made a written request to the City regarding non-disclosure of said infoi'mation (except, with respect to personal email addresses, as may be necessary to comply with the Public Records Act).

SECTION 12. LABOR MANAGEMENT ROUNDT ABLE COMMITTEE At the request of any party and at least proposed by the Persoru'iel Officer on a quarterly basis, the parties shall convene a Labor Management Roundtable Committee comprising of at least one member of each of the City's recognized labor associations to address issues of concern to all parties and, if necessary to address concerns specific to one association, to convene a subcommittee meeting following the joint Labor Management Roundtable Committee. The purpose of the Labor Management Committee meetings shall be to discuss issues of interest to employees, isSues of interest to management, issues of mutual interest, and to provide insight to all members of planned or proposed changes affecting employee working conditions.

At least one week in advance of the schedule meeting, associations shall provide topics for discussion at the Labor Management Roundtable Committee to permit time for parties to prepare for a discussion; however, members in attendance may bring up any topic for discussion during the meeting. A summary agenda will be provided by management with bullet points of items to discuss, the last of which shall be "discussion of non-agendized matters." Each association is permitted to send at least two members, the preference of which is that the President and Vice President of each association should attend. If it is necessary that additional association members attend, at least one week in advance, the association shall inform the Personnel Officer of that need SGPOA MOU 2025-26 4
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and Personnel Officer should accommodate any reasonable request based on the articulated need for more than two members of the association to attend.

If, during the Labor Management Roundtable Coinrnittee, it becomes apparent that there are issues specific to one association to address with the City separately, the affected association shall request such a meeting, which shall occur irninediately following the general session of the Labor Management Roundtable Coinmittee or within one calendar week thereafter, as agreed between the parties.

It is encouraged that any issues that arise involving the Association are addressed as soon as practicable by meeting witli the Personnel Officer. It is recognized that most issues can be resolved quickly and informally using this approach rather than waiting for the more fori'nal Labor Management Roundtable Comi'nittee to convene.

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ARTICLE II

SALARY & ALLOWANCES
SECTION 1. WORK SCHEDULE
The 3/12.5 work schedule shall be re-evaluated on or about July 1 of each year of the Agreement.

The City agrees to meet and confer with the Association regarding any proposed changes in the work schedule. [92/93; 94/97]
Police Officers assigned to Patrol (except special assignment such as motor officers, crime impact team and canine officers) shall be assigned to a 3/12.5 work schedule that consists of 3 consecutive workdays of 12.5 consecutive work hours each (inclusive of paid breaks and meal periods) followed by 4 consecutive days off. Once each 28 days such employees shall work one additional shift of 10 consecutive hours (inclusive of paid breaks and meal periods).

Police Officers assigned as motor officers, crime impact team and canine officers shall be assigned a 4/10 weekly work schedule that consists of 4 consecutive workdays of 10 consecutive workhours each (inclusive of paid breaks and meal periods), followed by 3 consecutive days off.

Any and all work schedules are subject to Police Officers working overtime as determined by the City.

SECTION 2. WAGES
For Fiscal Year 2025-26 and effective September 7, 2025, the salary range and base salary for the represented Unit classifications and employees still on payroll shall be increased by three percent (3.0%).

SECTION 3. LONGEVITY PAY
A. A Police Officer shall receive Longevity Pay in addition to their base salary rate, per the schedule below:

At the Beginning of the:
7fh year of continuous city service
13"1 year of continuous city service
26"1 year of continuous city service
27 I" year of continuous city service
Rate of Longevity Pay
2%
4%
7%
17%
Effective the pay period starting July 30, 2022, a Police Officer shall receive Longevity Pay in addition to their base salai'y rate, per the schedule below:

At the Beginning of the:
7f'l year of continuous city service
13'h year of continuous city service
26 Ih year of continuous city service
27 'h year of continuous city service
Rate of Longevity Pay
$1,968 annually, $75.69 per payroll period
$3,948 annually, $151.85 perpayroll period
7%
17%
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The Longevity Pay indicated above is the base rate that a Police Officer will receive based on their years of continuous service starting on their work anniversary date beginning the year indicated. Longevity pay shall be calculated based on the employee's base pay, when expressed as a percentage. The base rates are not cumulative, and the employees shall be paid at the highest level for which they qualify.

The parties agree that Longevity Pay is special compensation and shall be reported as such to CalPERS, to tlie extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1) for employees who are "Classic Members" as outlined in Article III, Section 3(C) and employees who are "New Members" as outlined in Article III, Section 3(D), respectively.

B. Once a City of South Gate Police Officer has completed five (5) years of continuous employment with the City, if they had prior full-time continuous service as a peace officer with another law enforcement agency or agencies, that previous service time shall be counted towards the years of continuous employment required for the Police Officer to receive Longevity Pay from the City.

Example: South Gate Police Officer has completed 5 years of continuous employment in that capacity with the City and they had one (1) year of prior full- time continuous service as a peace officer with another law enforcement agency, then their continuous years of City service would be deemed as having six (6) years and would qualify for the first level of Longevity Pay.

C. PERMISSIBLE UNDER CALPERS [Side Letter 9/25/07] If the ability to provide this benefit ever becomes impermissible by CalPERS, then this benefit will be eliminated and the parties shall prospectively return to the status quo ante.

SECTION 4. BILINGUAL PREMIUM PAY [92/93; 05/08; 17/21; 21/25] Police Officers who are proficient in sign language, verbally proficient in Spanish, Korean, or any other language designated by the City, shall receive bilingual premium pay of one hundred twenty- five($125)permonth. Thisamountwillincreasetoonehundredninetydollars($190)permonth effective with the payroll period starting July 30, 2022. Proficiency shall be determined by examinations administered by the Human Resources Department.

The parties agree that Bilingual Premium Pay is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR 571(a)(4) and 571.1(b)(3) for employees who are "Classic Members" as outlined in Article III, Section 3(C) and employees who are "New Members" as outlined in Article III, Section 3(D), respectively.

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SECTION 5. OTHER PAY
P.O.S.T. CERTIFICATE PAY [00/03; Resolution No. 6454, §4.10; 21/25]:

Police Officers who earn certificates from the Commission on Peace Officers Standards and Training (POST) of the California Department of Justice shall receive POST pay in addition to their Unadjusted Base Salary Rate, commencing with the start of the payroll period such certificate is earned, as follows:

POST Certificate
Interi'nediate
Advanced
POST Pay
5%
11%
The POST Certificate Pay indicated above is the actual percentage a Police Officer will receive for the highest POST certificate he/she possesses. The percentages are not cumulative and shall not be added together.

EDUCATION PAY [2021/25]
Effective the first full payroll period in July 2023, Police Officers who have obtained an Associate in Arts (AA) degree or Associate in Science (AS) degree or earned passing grades of C or higher in 60 units in any field by an educational institution accredited by an agency recognized by the California State Department of Education, the U.S. Department of Education, or the Council for Higher Education Accreditation ("Accredited Educational Institution"), shall receive $175 per month as educational pay, which is in addition to any qualifying POST Certification Pay.

Effective the first full payroll period in July 2023, Police Officers who have obtained a Bachelor of Arts (BA) or Bachelor of Science (BS) degree or earned passing grades of C or higher in 120 units in any field by an educational institution accredited by an agency recognized by the California State Department of Education, the U.S. Department of Education, or the Council for Higher Education Accreditation ("Accredited Educational Institution"), shall receive $275 per month as educational pay, which is in addition to any qualifying POST Certification Pay but not cumulative with any AA degree or unit pay.

The parties agree that Education Pay is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) for employees who are "Classic Members" as SGPOA MOU 2025-26 8
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outlined in Article III, Section 3(C) and employees who are "New Members" as outlined in Article III, Section 3(D), respectively.

SPECIAL ASSIGNMENT PAY
Police Officers assigned by the Chief of Police to the Special Assignment indicated below, shall receive Special Assigni'nent Pay of five percent (5%) in addition to their Unadjusted Base Salai'y Rate as follows:

1. Detective

2. Motorcycle Officer

3. Field Training Officer; additionally, Officers not ctirrently assigned as a Field Training Officer (FTO) but who have conpleted and passed an approved Field Training Officer course and are temporarily providing services as an FTO will receive the 5% special assigent pay forthe actual hours they are providing FTO services.

4. Traffic Officer

5. Canine Officer

6. Administrative Investigator

7. Crime Impact Team [12/14]
Special Assignments are held pursuant to the Police Depent's rules and not separate job classifications in the City's Classified Service. [Resolution No. 6454, §4.9]
The parties agree that Special Assignment Pay for the above assignments is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) for employees who are "Classic Members" as outlined in ArticleIII, Section 3(C) and employees who are "New Members" as outlined in Article III, Section 3(D), respectively.

FLSA/OVERTIME
For the purpose of the overtime provisions under the Fair Labor Standards Act (FLSA), Police Officers are assigned a 7K exemption of oniehundred seventy-one (171) hours in a 28-day work period; provided, however,t employees shall be paid one and one-half times their regular rate of pay for all time spent working outside their regularly scheduled hours.

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COMPENSATORY TIME OFF [14/15; 21/25]
In lieu of receiving overtime pay, employees may designate earned overtime hours as compensatory time off. Compensatory time off shall be accrued at time and one- half (11/:) the number of overtime hours worked. Employees may accrue Compensatory Time to a maximum of four hundred eighty (480) hours.

Compensatory time off may be used in accordance with Police Department regulations and may be converted to cash payment at the discretion of the employee. After receipt of the appropriate completed and signed forms, Finance shall process Compensatoi'y time cash payments during the next scheduled pay period to be included in the Police Officer's regular paycheck.

OVERTIME COURT DUTY

1. Court On Call
Off-duty Police Officers assigned to be "On Call" for a court appearance shall be compensated at the rate of three (3) hours at time and one-half (1 %) the employee's Regular Rate of Pay. On call pay is for any subpoena on a daily basis, not amorning/afternoon basis. Iftwo subpoenas are for the same day, the officer may not receive compensation for being "On Call" on one case while appearing on another court case during the same day. [97/00; Resolution No. 6454, §6.4]

2. Court Appearance [Side Letter 2/25/20]
Police Officers shall receive time and one-half (11/2) the employee's Regular Rate of Pay for appearing in court while off duty, with a minimum of four (4) hours pay per court appearance. The four (4) hour minimum begins with the start time of the subpoena and ends when the officer is dismissed by the court, handling district attorney or attorney assigned to the case. Should the time between the start time of the subpoena and the dismissal by the court, handling district attorney or attorney assigned to the case exceed four (4) hours, the officer will be paid at time and one-half (l M) the employee's Regular Rate of Pay for the actual hours between the subpoena start time and the dismissal time.

DETECTIVES ON CALL
Police Officers assigned as Detectives shall receive two (2) hours of pay at time and one half (11A) their Regular Rate of Pay for each non-workday that they are assigned by the Police Department to be in an On Call status. [05/08] CALL BACK PAY [94/97; Resolution No. 6454, §6.5] Police Officers who are called back to work by the Police Department shall receive a minimum of three (3) hours of pay at time and one-half (1%) their Regular Rate of Pay. Police Officers shall receive the Call Back Pay minimum SGPOA MOU 2025-26 10
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one time in a twenty-four (24) hour period regardless of the number of times they are called to return to work. A Police Officer is entitled to Call Back Pay after the end of the assigned work shift (including any overtime they may have worked), plus an additional thirty (30) minute grace period after the Officer's shift ended and after the Officer is no longer on the City's premises. CalI Back time begins when the Police Officer leaves their home to report directly to work, or if not at home, at such time as they begin to respond to the Police Department's Call Back notification and ends upon the Police Officer being released from duty. The Police Officer's travel time to return to work shall not exceed thirty (30) minutes.

I. ACTING PAY
The City's Acting Pay Procedures are outlined in Section 6.8 of the City's Rules & Regulations for the Administration of Civil Service Procedures, Resolution No. 6377, adopted on June 24, 1997, as amended by Resolution No. 6871, adopted on February 24, 2003, and Resolution No. 7038, adopted on January 11, 2005.

SECTION 6. UNIFORM ALLOW ANCE [82/84; 94/97; 00/03; 21/25] The City shall pay to each Police Officer a uniform allowance in the amount of $1,000 per fiscal year. Effective July 1, 2022, the City shall pay and report 1/26"1 of the uniform allowance each pay period, in compliance with CalPERS rules (Circular Letter: 200-050-19) whereby the aggregate amount for each pay period is reported within the earned period report (meaning paid out equally across all pay periods in a fiscal year).

The City will not require receipts for uniform purchases. It is however the sole responsibility of the employee to maintain and wear the proper uniform at all times.

The City shall report to the California Public Employees' Retirement System (CalPERS) the uniform allowance for each employee as special compensation in accordance with Title 2, California Code of Regulation, Section 571(a)(5). Notwithstanding the previous sentence, for "new members" as defined by the Public Employees' Pension Reform Act of 2013, the uniform allowance will not be reported as compensation earnable to CalPERS.

SECTION 7. PHYSICAL FITNESS [84/86; 87/89]
Police Officers who pass the Police Department's Physical Fitness "test" in any one of the following areas: (1) cycling, (2) three-mile walk, or (3) one and one-half mile run, shall receive special compensation of $600 each April and October.

The Police Department conducts fitness testing two (2) times a year, usually in April and October.

Scores are based upon the police officers' gender, age and physical fitness test performance. Police Officers who successfully complete their assigned segment of the "Baker to Vegas Run" are deemed to have passed the test in lieu of taking the fitness test in April of that particular year.

Those Police Officers are still required to participate and achieve a qualifying score to receive the special compensation of $600 in October.

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A score of "good" or better shall be deemed a passing score to entitle the recipient to receive the $600 payments described herein. Employee participation in this Physical Fitness Program is voluntary.

The parties agree that Physical Fitness Incentive Pay is special compensation and shall be reported as such to CalPERS, to the extent legally pen'nissible, pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1) for employees who are "Classic Members" as outlined in Article III, Section 3(C) and employees who are "New Members" as outlined in Article III, Section 3(D), respectively.

SECTION 8. SALARY STEP INCREASE [12/14]
If an employee does not receive written notice from the Chief of Police or designee prior to the employee's anniversary date that their salary step increase will be withheld, the salary step increase will automatically be made effective at the start of the pay period cornmencing after said anniversary date.
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ARTICLE III

FRINGE BENEFITS
SECTION 1. MEDICAL, DENT AL AND VISION INSURANCE
MEDICAL INSURANCE [04/05]
The City will pay the insurance premium for the CalPERS medical insurance plan and level of coverage (Employee only, Employee +1, or Employee +2 or more) the employee selects, not to exceed the CalPERS Kaiser-Southern California premium for the same level of coverage (Employee only, Employee + 1, or Employee +2 or more). If an employee selects a CalPERS medical insurance plan and level of coverage that has a higher premium than the Kaiser-Southern California level of coverage, he/she shall pay the difference in premium. If the employee selects a CalPERS medical insurance plan and level of coverage that has a lower premium than the Kaiser-Southern California level of coverage, the employee shall not receive the difference in premium from the City. The medical insurance carriers, plan benefits, premiums, eligibility and other terms and conditions are determined by CalPERS.

DENTAL INSURANCE [05/08; 14/15; 21/22]
The City will pay 100% of the cost of the City selected-dental PPO insurance plan premium for Police Officers and their eligible dependents MEDICAL AND DENTAL INSURANCE OPT OUT [90/92; 92/93] Police Officers who waive coverage from the CalPERS medical insurance plans, shall receive $360.60 per month to be paid to the employee's deferred compensation plan administered by the City. To be eligible to receive the above dollar amount, the employee must provide proof, as deteri'nined by the Personnel Officer, that he/she is currently enrolled in another comparable medical insurance plan and he/she shall remain enrolled in a comparable medical insurance plan in the future. If the employee's non-City medical insurance coverage is discontinued, the employee shall immediately provide written documentation to the City's Personnel Officer. A Police Officer whose outside insurance is teri'ninated may be eligible to enroll in CalPERS subject to then-existing rules.

The City will provide an employee who elects to waive their City dental insurance $17.95 per month as a contribution to the employee's deferred compensation plan.

VISION PLAN [14/15]
The City will pay 100% of the City-selected vision care premium for the Police Officers and their eligible dependents.
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SECTION 2. LIFE INSURANCE [86/87; 97/00; 21/25]
The City shall provide $5,000 in Teri'n Life Insurance and $100,000 Accidental Death and Dismemberment Insurance for all employees represented by the Association until age 65.

SECTION 3. RETIREMENT
A. Employees who are "Classic Members" as outlined below shall contribute the 9% Employee Contribution to CalPERS.

Employees who are "New Members" as outlined below shall contribute 50% of the applicable normal cost as member contributions to CalPERS. (G.C. Section 7522.30)
C. For all employees represented by the Association who are "Classic Members" within the meaning of the California Public Employees' Pension Reform Act of 2013, the City shall provide in its contract with CalPERS the following:

1. 3% at 50 Retirement Formula

1. 2.7% at 57 Retirement formula (G.C. Section 7522.25)

2. Final Compensation based on the average compensation earnable for the highest consecutive 36-months period. (G.C. Section 7522.32(a)) Effective the first full pay period in July 2023, all "Classic" represented unit members as defined by CalPERS shall pay an additional 1% (total 10%) towards the member's CalPERS contribution pursuant to California Governrnent Code 20516(a).

Effective the first full pay period in July 2024, all "Classic" represented unit members as defined by CalPERS shall pay an additional 1% (for a total of 11%) towards the member's CalPERS contribution. In addition, all "new" or "PEPRA" unit members, as defined by CalPERS, shall pay 1% towards the employer CalPERS contribution as cost sharing to be implemented by a CalPERS contract amendment pursuant to California Government Code section 20516(a).

PRE-TAX BASIS
The City shall adopt a resolution pursuant to Internal Revenue Code 414(H)(2) such that, to the extent permitted by law, the retirement contributions herein shall be on a pre-tax basis.
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H. RETIREE MEDICAL INSURANCE
For employees who retire from the City through CalPERS after twenty (20) years or more years as a South Gate Police Officer, and who remain so retired under CalPERS, the City shall contribute toward tlie retirees' CalPERS medical insurance coverage as follows: [90-92; Resolution No. 6454, §8.1] Retirees Prior to July 1, 2005 JSide Letter 9/25/07]
The retiree shall receive a total monthly contribution towards health insurance premiums from the City of up to $306 for employee only coverage and up to $518 for 2-party or family coverage.

Retirees on or after July 1, 2005 but were hired prior to December 11, 2012 jSide Letter 10/1/07]
The City will reimburse retirees, who retire from the City on or after July 1, 2005, forthe actual dollar amount CalPERS deducts from the retiree's monthly retirement checks for the CalPERS medical insurance coverage he/she selects up to the CalPERS Kaiser- Southern California 2-Party medical insurance premium amount. Cornmencing January 1, 2007 and each January l thereafter, the City shall increase its monthly contribution to those that retired on or after July 1, 2005 by the actual increase to the CalPERS Kaiser- Southern California 2-Party medical insurance rate, not to exceed five percent (5%) per calendar year.

Retirees who were first hired by the City on and after December 11, 2012 l 12/14] Effective for employees first hired by the City on and after December 11, 2012, the City will reimburse such employee upon retirement for the actual dollar amount for the CalPERS medical insurance coverage they select, not to exceed the amount of the CalPERS Kaiser-Southern California 2-Party medical insurance monthly premium rate in effect on the date of their retirement. The City shall not increase this monthly fixed dollar contribution beyond this amount.

I. DEFERRED COMPENSATION 457 PLAN [17/21]
Eligible Police Officers participating in the City's deferred compensation program shall receive a "dollar for dollar" match up to $1,200 per calendar year.

SECTION 4. SECTION 125 PROGRAM [90/91]
The City has established an Internal Revenue Code Section 125 program for employees. The City will pay the fee to administer the Section 125 program up to $6 per month per employee. The Section 125 Program shall consist wholly of money employees elect to contribute pursuant to Internal Revenue Service regulations.

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SECTION 5. PHYSICAL FITNESS MEMBERSHIP [84/86]
The City will provide each Police Officer a membership at the South Gate Sports Center in the South Gate Park as follows:

1. If the Police Officer resides in the South Gate City limits, they will receive a Family membership at no cost.

2. If the Police Officer resides outside the South Gate City limits, they will receive a membership for them at no cost.

SECTION 6. EDUCATION REIMBURSEMENT
The City will budget sufficient funds each fiscal year to meet its obligations for all City employees' education reimbursements. Police Officers, who meet the terms and conditions of the Education Reimbursement Program including, but not limited to passing their original probationary period, will be reimbursed as follows:

Department of Education or the Council for Higher Education Accreditation. Police Officers who voluntarily terminate service with the City within 2 years of completion of a course must re-pay the City for the unearned portion of the benefit they received on a pro-rata basis (i.e., 1/24f'l for each month short of two years).

2. Up to three thousand dollars ($3,000) per fiscal year for coursework at private colleges and universities which are accredited by an agency recognized by the U.S. Department of Education or the Council for Higher Education Accreditation. Police Officers who voluntarily terminate service with the City within 2 years of completion of a course must re-pay the City for the unearned portion of the benefit they received on a pro-rata basis (i.e., 1/24f'l for each month short of two years).

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ARTICLE IV

LEAVE POLICIES
SECTION 1. HOLIDAYS [94/97; 21/25]
A City designated holiday consists of ten (10) hours. The City will grant one hundred thirty hours (130) of Holiday Leave per year. The following thirteen (13) holidays are recognized by the Parties:

New Year's Day
Martin Luther King's Birthday
President's Day
Cesar Chavez Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving Day
Christmas Day
Holiday Break
January 1"
Third Monday of January
Third Monday of February
Last Monday in March
Last Monday of May
July 4"
First Monday of September
November 11I'l
Fourth Thursday of November
December 25f'l
Three workdays between Christmas and
New Year's
The City will review the holidays above in April of each fiscal year and determine the date each holiday will be observed for the coming fiscal year.

Employees who are scheduled to work on holidays shall take the holiday off at another date to be scheduled by the department as work schedules permit.

City Holiday Leave is not intended to be carried over from one fiscal year to a succeeding fiscal year, except for employees who, at the end of the fiscal year, are out on paid Administrative Leave or an Industrial Injury Leave (Workers' Comp). In those situations, the employee can carg over the unused Holiday Leave hours for a period of up to 60 calendar days after they return to work.

Otherwise, any Holiday Leave remaining from the previous fiscal year shall reduce the amount granted for the ensuing fiscal year in an equal amount.

An employee shall not receive compensation for holidays that occur after their separation from City employment.

SECTION 2.

VACATION LEAVE
VACATION LEAVE ACCRUAL [84/86; 97/00]
Employees shall accrue vacation leave each bi-weekly pay period. Vacation leave accrual shall be pro-rated for a partial pay period of City employment.

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Beginning of Through end of
Date of Hire 4"1 year
5tli 9'year
10"I 14th year
15f'l 19'h year
20"' 26"1 year
27f'l and thereafter
Hours Earned Aru'iually
88 120
160
180
200
o
The City will count prior full-time law enforcement service as a police officer with another agency towards vacation leave accrual once the employee has been employed by the City for five (5) years. [05/08]
Lateral Police Officers, upon successful completion of the twelve (12) month probationary period, shall be given credit for up to 200 hours of accrued vacation leave they have earned from another p.o.s.'r. recognized California law enforcement agency. [Resolution No. 7038]

VACATION LEAVE CASH OUT
Police Officers may request to cash out accrued, unused vacation leave at the employee's Regular Rate of Pay, not to exceed 100 hours in any fiscal year.

Beginning in December 2022 for vacation leave to be cashed-out in FY 2023, City shall supply an irrevocable cash out request form to be submitted no later than December 15th for the cash out for the following calendar year. Employees may cash out up to between 0%-50% of their annual accrual in July and the balance in December but only to the extent the employee has accrued, unused vacation leave sufficient to cover the leave cash out request. If the employee's vacation leave balance is less than the amount previously designated, the employee's cash-out will be limited to the amount accrued, unused vacation leave at the time of the designated cash out but must meet the designated cash out by year end. Employees who fail to submit a vacation leave cash out request by December 15th will be precluded from cashing out vacation leave in subsequent calendar year.

For Lateral Police Officers, in accordance with Resolution No. 7038, the number of hours of vacation leave, up to the maximum number of 200 hours, that were credited to the Lateral Police Officer upon successful completion of the twelve (12) month probationary period can only be cashed out after five years of service with the South Gate Police Department and is subject to the MOU between the SGPOA and the City in effect at the time the cash out request is made.

VACATION LEAVE ACCRUAL LIMIT [05/08]
A Police Officer's unused vacation leave shall not exceed a maximum of four hundred (400) hours at any time.

If Police Officer's accrued unused vacation leave reaches the maximum of four hundred (400) hours, he/she shall cease to accrue vacation leave until such time as 18SGPOA MOU 2025-26
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the Police Officer's accrued unused vacation leave is reduced below four hundred (400) hours.

SECTION 3. SICK LEAVE
SICK LEAVE ACCRUAL [03/04]
Employees sl'iall accrue six (6) hours of sick leave per bi-weekly pay period (total one hundred fifty-six (156) hours per year). Sick leave accrual shall be pro-rated for a partial pay period of City employment. Lateral Police Officers, upon successful completion of the twelve (12) month probationary period, shall be given credit for up to 400 hours of accrued sick leave they earned from another p.o.s.'r. recognized California law enforcement agency. [Resolution No. 7038] SICK LEAVE ACCRUAL LIMIT [03/04]
There shall be no limit on the number of unused sick leave hours a Police Officer may accrue at any time.

SICK LEAVE CONVERSION [05/08; 21/25]
The City shall permit Police Officers who are in the final 3 years of an eligible employee's employment before attaining the Normal Retirement Age as defined by IRS regulations and have 20 or more years with the City to convert accrued unused sick leave prior to retirement for the purpose of maximizing the employee's "Catch Up" contributions to Deferred Compensation, as permitted by applicable provisions of the Internal Revenue Code.

The Conversion of accrued unused sick leave hereunder shall be at the employee's Regular Rate of Pay per Article I, Section 8(a). [Side Letter 9/25/07.] This sick leave conversion to deferred compensation is limited to a maximum of 1200 hundred hours for both conversion to deferred compensation and for cash out upon separation. Any remaining sick leave balance above the combined 1200 hour cap can still be converted to retirement service credit pursuant to Government Code Section 20965 to the extent the City maintains that CalPERS contract benefit.

Employees hired into the bargaining unit after July 30, 2022, shall not be entitled to convert sick leave to deferred compensation or cash out but may still convert unused sick leave to service credit pursuant to Governrnent Code Section 20965 to the extent the City maintains that CalPERS contract benefit. Recruits in the Academy are not deemed employees for this purpose. Any represented employee that dies prior to retirement shall have their sick leave paid to their beneficiary if the employee has 20 or more years of service at the time of death or if the death was work related.

SICK LEAVE CASH OUT UPON SEP ARATION [05/08]
Police Officers hired prior to July 1, 1993, shall be permitted to cash out an unlimited number of accrued unused sick leave hours. 19 1'JI
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Police Officers hired on or after July 1, 1993, but prior to August 1, 2022, shall be perinitted to cash out a lifetime maximum of twelve hundred (1200) accrued unused sick leave hours. Cash out of accrued unused sick leave hours shall be at the employee's Regular Rate of Pay, per Article I, Section 8(a). [Side Letter 9/25/07] This sick leave cash out upon separation is limited to a maximum of 1200 hundred hours for both cash out upon separation and conversion to deferred compensation.

Any remaining sick leave hours balance above the combined 1200 hour cap can still be converted to retirement credit to the extent the City maintains that CalPERS contract benefit. Employees hired into the bargaining unit after July 30, 2022, shall not be entitled to convert sick leave to deferred compensation or cash out. Recruits in the Academy are not deemed employees for this purpose.

In addition to the above eligibility requirements, payment to Police Officers for accrued unused sick leave shall be according to the following:

1. 15 - 19 years of City employment
50% of eligible accrued unused sick leave.

2. 20 years or more of City employment
100% of eligible accrued unused sick leave.

SECTION 4. BEREAVEMENT LEAVE
Employees shall be allowed time off for the death of an immediate family member, which may be taken any time within ninety (90) days of the family member's passing. This time may be taken non-consecutively at the discretion of the employee. The term "immediate family" is defined as the spouse, domestic partner, child, parent, sibling, grandparent, grandchild, or parent-in-law of the employee or other person as approved by the City Manager or his/her designee.

Upon providing documentation of the death of an irnrnediate family member, the employee shall be entitled to forty (40) hours of bereavement leave, not chargeable to any other leave. If an employee does not provide documentation of death, the employee's time off shall be chargeable first as sick leave and then to any other remaining, accrued leave balance. If the employee uses the bereavement leave consecutively and wishes to extend that leave to another forty (40) hours, he/she may take such additional consecutive leave chargeable as sick leave.

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SECTION 5. FAMILY AND MEDICAL LEAVE ACT (FMLA)
Pursuant to State & Federal law, the City will provide family and medical care leave to eligible employees. The following provisions set forth employees' rights and obligations with respect to FMLA/CFRA-covered leave. Rights and obligations which are not specifically set forth below are set in the Department of Labor regulations implementing the Federal Family and Medical Leave Act of 1993 (FMLA), and the regulations of tl'ie California Fair Employment and Housing Comi'nission implementing the California Family Rights Act (CFRA). Unless otherwise provided by this section, "Leave" under this provision shall mean leave pursuant to the FMLA and CFRA.

SECTION 6. UNPAID LEAVES OF ABSENCE
A leave of absence without pay which is not covered by state or federal law may be granted only in those cases where an employee's record of service makes it desirable for the City to recognize such service, even at the cost of some inconvenience to the City. The factors which will be considered in evaluatingrequests forunpaid leaves of absence include, but arenot limited to, whetherthe employeehas aczed paid leaves, and prior discipline and counseling received by the employee.

The employee shall submit a written request for an unpaid leave of absence to the Police Chief In the exercise of his discretion, the Police Chief shall approve or deny an application, and shall notify the employee in writing.

A leave of absence withoutpayup to ninety (90) calendardays inany one calendar yearmaybe granted by the Police Chief and the Persoru'iel Officer. A leave of absence without pay in excess of ninety (90) calendar days must be approved by the Personnel Officer.

Leaves of absence without pay, other than for illness or injury, may not exceed one hundred eighty (180) calendar days duting any three (3) calendar year period. The Police Chief and the Personnel Officermay grant anunpaid medical leave of absence for amaximum period of one (1) year for a bona fideillness orinjuty. Beforebeing granted anunpaidleaveof absencedueto illness orinjury, anei'nployee must utilize all sick leave; and may, but shall not be required to, use vacation leave.

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In the event that an einployee has no eligible leave to cover an absence from work, authorized or unauthorized, the Police Chief and the Personnel Officer may approve the short tam leave with due consideration of the employee's work record.

In the event an unpaid leave of absence does not result in a break in service, the employee's Annive,,aiy Date forpurposes of salary step increases shall be delayed fortheperiod of absence; and during the period of absence the employee shall not accrue other benefits, such as, but not limited to seniority, vacation leave, holiday leave, and sick leave.

SECTION 7. JOB RELATED INJURY OR ILLNESS
Employees in the unit are eligible to receive continuation of salary and benefits in accordance with Labor Code section 4850.
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ARTICLE V

GRIEVANCE PROCEDURES
The City's Grievance Procedures are outlined in Section 12 of the City's Rules & Regulations for the Administration of Civil Service Procedures, Resolution No. 6377, adopted on June 24, 1997, as amended by Resolution No. 6871, adopted on February 24, 2003, and Resolution No. 7038, adopted on January 11, 2005.

The parties agree to retain the services of an Administrative Law Judge (ALJ) through the Office of Administrative Hearings (OAH) to conduct Step 4 Grievance review and provide a written decision in place of the City's Civil Service Cornrnission, with all other aspects of the grievance hearing remaining the same. The City and the Association shall share the costs of using the ALJ and OAH equally, with each side paying their share as and when required by the neutral, third- party or the OAH. If either party wishes to have a court reporter document the proceedings, then that party shall bear the cost of such court reporter. In the event that both parties wish to have a court reporter document the proceedings, then the parties shall split the cost of such court reporter.

Absent alternative agreement between the parties, each party shall bear the costs of any transcript(s), if requested.

ARTICLE VI

The parties agree to retain the services of an Administrative Law Judge (ALJ) through the Office of Administrative Hearings (OAH) to conduct the disciplinary action appeal and provide a written decision in place of the City's Civil Service Commission, with all other aspects of the disciplinary hearing remaining the same. The City shall bear the costs of contracting with OAH and using the ALJ. City shall also bear the cost of any court reporter, transcripts or similar recording. No employee shall ever be required to pay any cost of a disciplinary appeal except for their own representation and/or legal counsel.

ARTICLE VII

LAYOFF PROCEDURES
SECTION 1. LAYOFF PROCEDURES

1.1 Layoff
The City Council or City Manager may separate any employee or class of positions without prejudice, because of financial or economic condition ofthe City, reduction SGPOA MOU 2025-26 23
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of work, or abandonment of activities. If the reduction in force is necessary for economic reasons, as a general law city, the City shall observe the seniority rule per Goverent Code Section 45100 in putting the reduction into effect. The City shall give employees covered by this MOU not less than fi:tteen (15) calendar days advance notice of lay-off and the reason therefore. However, no full-time employee shall be separated from a department while regular part-time or hourly employees are serving in the same positions in the department.

1.2 Bumping Rights
The employee laid-off shall be entitled to bump to the position in a class in which he/she currently or fori'nerly held a permanent appointment and in which there is an employee with less seniority in the class, if physically and mentally able to perfon'n the duties of the fornner class. After the City has notified the affected employee and also the position available to the employee, if any, to bump, he/she must notify the Personnel Officer of their intent to exercise the bumping rights within fourteen (14) calendar days of the position and classification in the City which they intend to bump, or the bumping rights shall be barred and waived to the employee. The employee with the least seniority in the class shall be bumped by the person who is laid off. The employee bumped shall be considered as laid-off for the same reason as the person who bumped him/her and shall in the same maru'ier be eligible to bump to a position in a class within the City in which he/she formally had a permanent position.

1.3 Appointment of Laid-Off Employees to Lower Class The City Manager may approve the appointment of an employee who is to be laid-off to an existing vacancy in a lower class for which he/she is qualified without requiring an examination, provided the appropriate appointing authority so appoints.

1.4 Applicability
These provisions shall apply to all classified positions but shall not apply to unclassified, probationary, hourly, and temporary positions.

1.5 Lay-off List
The lay-off list shall consist of those employees laid-off in the classification ranked in order of seniority. If there is a classification of a lower rank in the same classification series as the position from which the employee was laid- off, that employee's name shall be placed on the lay-off list for each sucli lower ranked classification.

A laid-off employee shall retain re-employment rights to the classification from which they were laid-off irrespective of their acceptance of reemployment at a lesser rank.

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The City's labor relations representatives and the Association's representatives have met and conferred in good faith on wages, hours and other teri'ns and conditions of employment for the unit members represented by the Association and have reached agreements which are set forth in this MOU, This MOU, when executed by the City labor relations representatives and the Association representatives, constitutes a joint recommendation therefrom, after ratification of the Association membership, to be submitted to the City Council for its determination and approval by resolution, as the City Council may deem fit and proper. This MOU is of no force or effect unless or until approved and adopted by a resolution of the City Council.

Signature Page to follow.
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- Signature Page-
The City and the Association acknowledge that this Agreement is entered into as of the 4'h day of September 2025 and is subject to it being executed by autliorized representatives.

CITY OF SOUTH GATE:

B7:

Maria Davila, Mayor
Date:

SOUTH GATE POLI OFFICERS'

ASSOCIATI
M ias. President
Date: Cl q - ?:)3 - 2G
By:l/!t
Date:

Date:

ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

F. Salinas, City Attorney
SGPOA MOU 2025-26
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356
Attachment G
To Resolution No.

TERMS AND CONDITIONS OF EMPLOYMENT

FOR THE

UNREPRESENTED EXECUTIVE MANAGEMENT

EMPLOYEE GROUP
JULY 1, 2025, TO JUNE 30, 2026
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357

TABLE OF CONTENTS

ARTICLE I
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 0
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 17
3 4
4 4
4-6
3 6-7

GENERAL PROVISIONS
RECOGNITION AND GENERAL PROVISIONS.

CURRENT AND SUPPLEMENTAL AGREEMENTS

NONDISCRIMINATION

DURATION

CITY RIGHTS
"AT WILL" EMPLOYMENT, TERMINATION,
AND SEVERANCE PLAN .

DRESSCODES .. . . . . ... . . . . .. . .... ,, ,,, 8 IMDEMNIFICATION . ... . . . . . .... ..... .. . . .. . . . . . 8 BONDING .. .. . .. .. . . . .... .... .... . . ... .. .. . ... .8 PERSONNELRULES ANDREGULATIONS . .. . ... .... .. . . . 8 PROBATIONPERIOD .. . . ... . . .. . . .. . . . . ,, , ,8

WORKWEEK AND HOURS

ELECTRONIC CHECK DEPOSIT
SUBST ANCE ABUSE.

SMOKE FREE POLICY

EMPLOYEE ACKNOWLEDGEMENT OF RECEIPT OF OFFICIAI,
DOCUMENTS . . .. . .. . . . ... .. . . ... . . . . . . . . . 9 EXCLUSION FROM CML SERVICE RULES AND REGULATIONS.. 9 8-9
9 9
9 ARTICLE II
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9

SALARIES AND ALLOWANCES

PAY INCREASES IMPLEMENTATION
WAGES

MERIT BASED STEP INCREASE

WITHHOLDINGS

EDUCATIONAL REIMBURSEMENT

VEHICLE ALLOW ANCE

COICATION DEVICE

EDUCATIONAL INCENTIVE PAY

UNIFORM ALLOWANCE (SWORN ONLY)
10 -11
11 11
11 11

ARTICLE III
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7

FRINGE BENEFITS
HEALTHCARE INS{JRANCE.

LIFE INSURANCE

VOLUNT ARY LIFE INSURANCE

RETIREMENT

DEFERRED COMPENSATION

FITNESS

LONG TERM DISABILITY
12 12
12 12
12-14
14 14-15
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l
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ARTICLE IV
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 10
SECTION 11
SECTION 12

LEAVE POLICIES

HOLIDAY LEAVE
VACATION . .

SICK LEAVE
JURY DUTY .

LEAVE WITHOUT PAY

MATERNITY LEAVE

FAMILY MEDICAL LEAVE ACT/CALIFORNIA FAMILY

RIGHTS ACT

BEREAVEMENT

JOB RELATED INJURY OR ILLNESS

MILITARY LEAVE

ADMINISTRATIVE LEAVE
PERSONAL BUSINESS LEAVE .
16 16 -17
17 -18
18 -21
21 21
22 22
22 -23
23 ..23
23-25
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ARTICLE V
SECTION 1
SECTION 2
SECTION 3
IMPLEMENT ATION OF TERMS & CONDITIONS...................... 26 MODIFICATIONS. . . ... .. .. ...... ..... . .. . .... .. . ....... . ... . 26 EFFECTOFWAIVER . . .. . .. .... .. . ... .. .......... . . ..26 ENTIRITY . .. . .. . ..... .... .. 26
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ARTICLE I

GENERAL PROVISIONS
SECTION l RECOGNITION AND GENERAL PROVISIONS
Tl'ie City Manager and the City Council have designated the following positions as falling within the scope of the Unrepresented Executive Management Employee Group ("Executive Management" or "Employees") and, in accordance with the provisions of the Fair Labor Standards Act (FLSA), have designated the following positions as exempt from minimum wage and overtime requirements of the FLSA:

Assistant City Manager
Chief of Police
Director of Administrative Services
Director of Community Development
Director of Human Resources
Director of Parks & Recreations
Director of Public Works
Other classifications may be designated as executive management from time to time as deemed appropiiate by the City Manager and the City Council. The City Manager may combine two of the above positions (e.g., Assistant City Manager/Director of Public Works) and the combined position shall remain covered by these Terms and Conditions of Employment.

Employees may be subdivided in these Terms and Conditions of Employment into two categories: Sworn employees, which includes the Chief of Police (hereinafter "Sworn Employees"); andMiscellaneous employees, which includes the Assistant City Manager, Director of Administrative Services, Director of Community Development, Director of Human Resources, Director of Parks & Recreation, and Director of Public Works (hereinafter "Miscellaneous Employees").

The City Manager of the City of South Gate has the authority to appoint, promote, discipline, demote, and remove any offices and employees of the City except the City Clerk, City Treasurer, and the City Attomey, pursuant to the City of South Gate Municipal Code Section 1.06.060 (Power and Duties), of Chapter 106 (City Manager), of Title 1 (Administrative and Persoru'iel).

Employees subject to these Tertns and Conditions of Employment must remain in the exclusive employment of the City and not to become otherwise employed while these Terms and Conditions of Employment are in effect, withorit prior, written approval of the City Manager. The term "employed" shall not be construed to include occasional teaching, writing, or consulting performed outside of normal City business hours, or on Employee's time off with the prior, written approval of the City Manager. 3 360
SECTION 2 CURRENT AND SUPPLEMENTAL AGREEMENTS
It is the intent of the City and Employees that these Terms and Conditions of Employment supersedes all previous agreen'ients or understandings either written or oral regarding, but not limited to, matters relating to wages, hours, and terms and conditions of employment between Executive Management employees, as represented by the City Manager, and by the City of South Gate ("City"). These Temis and Conditions of Employment contain the entire understanding between the parties on all matters related to the employees' working conditions, rights, duties, and benefits. No amendment, change, or variation hereof shall be valid or binding unless reduced to writing by the City Manager and approved by the City Council.

SECTION 3 NONDISCRIMINATION
The City and Employees agree that, in applying the terms of these Terms and Conditions of Employment, neither party will discriminate against any employee because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, veteran or military status, political beliefs and affiliations, or union affiliation of any person or from any other reason prohibited by law.

SECTION 4 DURATION
These Terms and Conditions of Employment shall be effective from July 1, 2025, through June 30, 2026, and shall supersede any previous agreements, any amendments, resolutions or side letters thereto, shall become effective only after adoption by the City Corincil of the City of South Gate. In the event there is no successor agreement in place following June 30, 2025, these Terms and Conditions of Employment shall remain in full force and effect until such time that a successor agreement is ratified and approved by the City Council.

All provisions in these Terms and Conditions of Employment become effective on July 1, 2025, unless an earlier date is approved in a specific provision.

SECTION 5 CITY RIGHTS
A. Except as otherwise specifically provided, the City has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following:

1. To determine the nature, standards, and extend of services to be performed, as well as the right to determine and implement its public function and responsibility.

2. To manage all facilities and operations of the City, including the methods, means, and numbers and kinds of personnel by which the City operations are to be conducted.
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3. To contract and/or transfer orit work.

4. To direct the working forces, including the right to hire, assign, promote, demote, or transfer any employee.

5. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assigiunents upon reasonable notice.

6. To discharge, layoff, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees in accordance with applicable law.

7. To determine policies, procedures, and standards affecting the selection, training, and promotion of employees.

8. To establish, assess, and implement employee perfoimance standards, including, but not limited to, qriality and quantity standards; the assessment of employee perfortnances; and the procedures for said assessment.

9. To establish and enforce dress and grooming standards.

10. To determine tin-ie, reasons, methods, and means to relieve its employees from duty because of lack of work, lack of funds, or other lawful reasons.

11. To maintain the efficiency of govemmental operations.

12. To determine safety, health, and property protection measures.

13. To determine methods of financing.

14. To determine style and/or types of City-issued wearing apparel, equipment, or technology to be used.

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

16. To determine and change the number of locations, relocations, and types of operations, means, methods, processes, equipment, and materials to be used in carrying out all City functions, including, but not limited to, tlie right to transfer work out of the unit, contract for, or subcontract any work or operations.

17. To establish, modify, deten'nine, or eliminate job classifications.

18. To take all necessary actions to carry orit its mission in emergencies.

19. To exercise complete control and discretion of its organization and the technology of performing its work.
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20. To take such other and fiirther action as may be necessary to organize and operate the City in the most efficient and economical manner and in the best interest of the public it serves.

B. Executive management recognizes that tl'ie City has and will continue to retain, whether exercised or not, the unilateral and exclusive right to operate, administer, and manage its municipal services and work force, performing those services in all respects subject to these Terms and Conditions of Employment.

SECTION 6 "AT WILL" EMPLOYMENT, TERMINATION AND SEVERANCE PLAN Employees are "at will" and shall serve at the pleasure of the City Manager pursuant to Section 1.06.060(C) of the South Gate Municipal Code. As such, the City manager may terminate an Employee's employment at any time with or without cause, and with or without advance notice. A newly appointed City Managermaynot terminate an Employee without cause until at least six months after the City Couricil duly appointed him/her to the position.

Employees may be terminated with cause for disciplinary reasons, or without cause or laid-off at the sole discretion of the City Manager. In the event an Employee is terminated without cause by the City at any time the Employee is still willing and able to perform his/her duties, the City shall provide six (6) months' base salary upon termination, less ordinary deductions for taxes and other customary withholdings, provided; however, that said severance payment shall also be deemed as consideration for, and is conditioned upon, a full and complete written release of any and all claims, if any, by the Employee arising out of his/her employment relationship with the City, including a waiver of California Civil Code Fp 1542. Said release shall not extend to any claim for Workers' Compensation benefits, which the Employee may seek and shall not prohibit him/her in any way from participating in any state or federal administrative action or investigation.

An Employee may be terminated for cause for actions including, but not limited to:
a. Conviction of any illegal act involving personal gain to the employee; b. Conviction of any felony, irrespective of the charge; c. Conviction of any misdemeanor involving charges of moral turpitude, fraud or any act of misappropriation of public funds while working for the City, or; d. As forind by the City Council, upon the recommendation of the City Manager, to have:
(1) Been in gross neglect or dereliction of his/her duties, including willful or repeated violation of the following examples of conduct, which shall constitute cause for disciplinary action up to, and including discharge of an employee:
a) Willfully or cortuptly making any false statements, certificates, marks, ratings, reports, failing to disclose material facts or in any manner committing or attempting any fraud.
b) Incompetence.
c) Inefficiency.
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d) Neglect of duty.
e) Insubordination.
f) Dishonesty.
g) Violation of City's Dnig Free Workplace Policy. h) Intemperance.
i) Absence without authorized leave.
j) Conviction of a felony or conviction of a misdemeanor involving moral turpitude. A plea or verdict of guilty, or a conviction following a plea of nolo contendere, to a charge of a felony or any offense involving moral turpitude is deemed to be a conviction within the meaning of this Section.
k) Immorality.
l) Discourteous treatment of the public or other employees, including sexual harassment.
m) Improper political activity.
n) Willful disobedience.
o) Misuse of property owned by, leased to, or under the charge of the City.
p) Violation of any of the prohibitions set forth in California Government Code §§ 1090 et seq. and § 1126. (Related to conflict- of-interest activities).
q) Refiisal to take and subscribe any oath or affimiation that is required by law in connection with employment.
r) Any other failure of good behavior either during or outside of duty hours which is of such a nature that it causes discredit to the City, its officers or employees.
s) Willful injury to persons.
t) Waste of material.
u) Advocating violent overthrow of govemment. (Government Code Section 1028) "It shall be sufficient cause for the dismissal of any public employee when such public employee advocates or is knowingly a member of the Communist Party or of an organization which during the time of his/her membership he/she advocates overtmow of the Governrnent of the United States or of any state by force or violence."
v) Any unauthorized use of City uniforms.
w) Any violation of City or departmental policies and rules. x) Violation of City's Discrimination/Harassment Policy. (2) Misappropriated any assets of the City; or
(3) Failed to accurately state his/her representations or warranties.

The City Manager or his/her designee shall serve on an Employee terminated with cause a written document describing the reason(s) for tlie employee's termination and the date that the employee wiII be terminated. The Employee may meet with the City Manager to discuss the basis upon which he/she sliall be terminated; however, tlie City Manager's decision is final and not subject to appeal and/or grievance. An Employee terminated with cause is not entitled to tlie six-month severance pay as described above for an Employee laid off or terminated without cause.
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SECTION 7 DRESS CODE
The parties agree that City dress codes shall be determined by the City Manager in accordance with business necessity.

SECTION 8 IMDEMNIFICATION
To the extend mandated by state and/or federal law, including butnot limited to Califomia Governrnent Code §'q 825-825.6, 995-996.6, and other applicable laws, the City sl'iall defend, hold harmless, and indemnify Employee against any tort, professional liability, claim or demand, or other legal action arising out of an alleged act or omission occurring in the perfoxmance of Employee's services under these Temis and Conditions of Employment, whether groundless or otherwise, alleged as a public official or private individual, arising out of an alleged act or omission occurring in the performance of the Employee's duties as defined in these Tertns and Conditions of Employment. City will compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered thereon for Employee's activities performed in the course and cop of his/her employment.

SECTION 9 BONDING
The City shall bear the full costs of any fidelity or other bonds required of the Employee under any law or ordinance.

SECTION 10 PERSONNEL RULES AND REGULATIONS
The Employee is subject to the provisions of any personnel rules, regulations, and other policies and procedures governing the terms and conditions of employment whether now in existence or subsequently adopted by the City. Except as to the discipline, disciplinary appeals, notice and termination provisions thereof, such niles, regulations, policies or procedures are incorporated into these Terms and Conditions of Employment byreference and shall govern unless there is a conflict with these Terms and Conditions of Employment.

SECTION 11 PROBATION PERIOD
All Employees are "at will," do not have a probation period, and subject to termination pursuant to the terms outlined in these Terms and Conditions of Employment.

SECTION 12 WORKWEEK AND HOURS
Employees are expected to engage in the hours of work that are necessary to fulfill the obligations of the position, must be available at all times, and must devote a great deal of time outside the normal office hours to the business of the City. The proper performance of duties will require Employees to generally observe normal business hours (currently 7:00 a.m. to 6:00 p.m., Monday through Thursday, including a standard one-hour )unch period), as set by the City and as may be duly revised from time-to-time by tlie City, and 8 .2,1 'b
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will also often require the performance of necessary services oritside of normal business hours. Employees who are not able to generally adhere to tlie City's normal business hours sl'iall discuss the reasons with the City Manager.

It is recognized that an Employee's duties may vary day-to-day, week-to-week as a result of the work demands placed on tl'ie Employee and tlie times such work is required to be performed. Employees may be required to work outside of normal office hours to attend to the business of the City and, upon approval of the City Manager, may be permitted to take compensatory time off as deemed appropriate
SECTION 13 ELECTRONIC CHECK DEPOSIT
The City will continue to provide an electronic check deposit program.

SECTION 14 SUBSTANCE ABUSE
It is appropriate to provide a drug-free workplace through the establishment of policies and procedures that clearly prohibit the use of alcohol and other dnigs and their influence on the job, as implemented by the City's Drug and Alcohol Abuse Policy.

SECTION 15 SMOKE FREE POLICY
All City buildings and vehicles shall be considered "smoke free" areas. Employees may smoke on City property only in areas specifically designated for smoking.

ARTICLE 16 EMPLOYEE ACKNOWLEDGEMENT OF RECEIPT OF OFFICIAL

DOCUMENTS
Employees being served with City documents that contain a formal Notice of Acknowledgement of Receipt with a signature line and date for the employee to sign and who are directed to sign such document at the time presented, shall promptly sign and date the Notice of Acknowledgement of Receipt or may be subject to discipline for insubordination for failure to comply with an official directive and for violation of these Terms and Conditions of Employment. Any disciplinary document shall have the following sentence before the signature line: "My signature does not mean that I agree with the contents of this document and does not waive any of my rights." ARTICLE 17 EXCLUSION FROM CIVIL SERVICE RULES AND REGULATIONS Employees are "at will" and excluded from the City's civil service ttles and regulations pursuant to Section 1.24. 105 of tlie Sorith Gate Municipal Code 9 2-t !
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ARTICLE II

SALARIES AND ALLOWANCES
SECTION l PAY INCREASE IMPLEMENT ATION
The City shall make payroll changes for step increases, pay increases, and other compensation changes at the start of the nearest pay period, subject to the Personriel Officer's approval and/or adjustment (due to special circumstances).

SECTION 2 WAGES:

For Fiscal Year 2025-26 and effective September 7, 2025, the salary range and base salary for the positions identified in Aiticle I, Sectionl, shall be increased by three percent (3.0%)
SECTION 3 MERIT BASED INCREASES
All employees will be placed on the same evaluation schedule with either annual or semi- annual evaluations. Advancement to a higher Step in each Grade will be contingent upon an overall satisfactory or exemplary performance evaluation. Merit increases must be recorninended by the City Manager. Should the City Manager fail to complete an evaluation through no fault of the Employee, the Employee will automatically receive any regularly scheduled increase. The City Manager may take affirmative action to wit&old a salary step increase if it is determined at the sole discretion of the City Manager that the Employee has not met satisfactory standards. Withholding a salary increase is an administrative action, and not disciplinary, and therefore is not a subject to appeal.

Additionally, it is the sole discretion of the City Manager as to when he/she may reconsider a merit increase and any merit increase provided following a withholding is not subject to retroactive pay.

SECTION 4 WITHHOLDINGS
A. Social Security: No contributions are paid by the City or Employees into Social Security.

B. Medicare: For all employees hired after April 1, 1986, a total withholding of 2.9% shall be contributedto Medicare with the City paying 1.45% of the Employee's salary and the Employee paying the remaining 1.45% of his/her salary.

SECTION 5 EDUCATIONAL REIMBURSEMENT
Up to $3,500 for any private or priblic college or university or recognized professional organization (American Planner Association, Government Finance Officers Association, etc.) annually for enrolling in classes related to their professional development with the City. Such reimbursement shall be pre-approved by the City Manager prior to enrollment by the employee. To be eligible for reimbursement, an employee must obtain a grade of "C" or better (a "Pass" if the class is a pass/fail standard) and shall submit a grade slip or other evidence of successful course completion and appropriate invoices and/or receipts. 10 2i 5
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For Employees hired on or after January 1, 1993, and who were appointed to an Executive Management position covered by these Terms and Conditions of Employment on or before January 1, 2015, the City shall pay for related regional and national professional memberships as approved by the City Manager including renewal of professional licensees related to the position.

SECTION 6 VEHICLE ALLOWANCE
A. Miscellaneous Employees: In lieu of the City providing a vehicle or paying mileage reimbursement for City business use, the employee shall receive $500 per month as a vehicle allowance. The employee shall annually present proof of vehicle insurance and that such coverage shall cover the vehicle operation for city business purposes by said employee. The employee shall also participate in the City's anmial DMV verification program. An employee receiving the Vehicle Allowance may not use a City vehicle for any purpose. Employees may use City Electronic Vehicle (EV) charging stations, if available.

B, Sworn Employees: Given the nature of the responsibilities attached to the position of Chief of Police, providing a City-issued vehicle is more appropriate and cost effective as it would require a private vehicle to be outfitted with certain equipment so the Employee can cari7 out his/her duties as expected. Accordingly, a Sworn Employee will be provided with a vehicle that he/she may use for all work-related purposes, including driving to and from work, trainings, and events.

SECTION 7 COMMUNICATION DEVICES
A. Miscellaneous Employees: In lieu of the City providing a cell phone, the Employee shall receive $120 per month for communication expenses. The empIoyee understands the monthly records of calls may be subject to the California Public Records Act relating to City business items. The City Attorney's Office will make any determination of applicability.

B, Swom Employees: The Swom Employee has a choice to either receive the allowance as specified above in Section 7.A. or may receive a City-issued cell phone.

SECTION 8 EDUCATION INCENTIVE PAY
The City shall pay $225 per month for any employee that has obtained a master's degree or higher from a fully accredited university.

SECTION 9 UNIFORM ALLOWANCE (SWORN ONLY)
Sworn Employees may order uniforms from a City-approved vendor for an amount not to exceed $1,200 annually and that the purchase of such uniforms shall be billed directly to the City.
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ARTICLE III

FRINGE BENEFITS
SECTION l HEALTHCARE INSURANCE
The City provides health coverage through the CalPERS Health Program. Employees receive up to $1,000 + I.OO% of his/her base annual salaiy, monthly towards mandatory medical and dental coverage, which includes the required CalPERS monthly contribution. hi lieu of this benefit, Employees showing proof of enrollment in an alternative group health plan, and annually each year thereafter, may opt out of City health coverage with a cash-in-lieu payment of $900 per month minus any premiums for dental and vision coverage, An employee may designate all or some of the $900 per month cash-in-lieu payment to be deposited into the employee's deferred compensation account.

The City pays for the Employee and up to 2 dependents party HMO Vison plan premium, SECTION 2 LIFE INSURANCE
The City shall provide $100,000 Life and Accidental Death and Dismembeiment Insurance for all Employees subject to these Tertns and Conditions of Employment.

SECTION 3 VOLUNTARY LIFE INSURANCE
Eligible employees will be offered the opportunity to purchase life insurance in addition to the life insurance paid for by the City. Currently voluntary life coverage is provided by The Guardian and establishes the terms and conditions regarding coverage; however, the City reserves the right to change insurance carriers for this benefit at its own, independent discretion.

SECTION 4 RETIRF,MENT
A. CalPERS Pension
Employees will be provided with California Public Employees' Retirement System ("CalPERS") pension benefits consistent with the City's contract with CalPERS, with benefits differing depending on whether the employee is a "classic member" or "new member," as defined by the Public Employee's Pension Reform Act ("PEPRA"). The City will pay the Employer contribution of pension cost and the employee shall pay the Employee contribution of pension costs consistent with CalPERS requirements. The City's CalPERS contract provides for 1959 Survivor Benefit Level 4 and sick leave credit, such that sick leave is converted to service credit upon retirement from the City within four months of employment separation subject to current CalPERS regulations.

1. "Classic Members": For all employees who are "Classic Members" within the meaning of the California Public Employees' Pension Reform Act of 2013, the City shall provide in its contract with CalPERS the following retirement:
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a, Miscellaneoris Employees: These employees sliall receive a retirement pension formula of 2.7% @ 55 calculated using their highest 12 montlis of income.
b. Sworn Employees: these employees shall receive a retirement pension fortmila of 3.0% @ 50 calculated using their highest 12 months of income.

2. "New Members": For all employees who are "PEPRA" within tlie meaning of the California Public Employees' Pension Refoim Act of 2013, tlie City shall provide in its contract with CalPERS the following retirement:
a. Miscellaneous Employees: These employees shall receive a retirement pension formula of 2.0% @ 62 calculated rising their highest 36 months of income.
b, Sworn Employees: these employees shall receive a retirement pension formula of 2.7% @ 57 calculated using their highest 36 months of income.

B. Employee Contributions

1. Miscellaneous Employees: Miscellaneoris Employees will pay tl'ie employee's 8% contribution to the retirement plan or as defined by PEPRA. Starting July 1, 2023, all Miscellaneous Employees, "Classic" and "PEPRA" as defined by CALPERS, shall pay an additional 1% towards the employer CalPERS contribution as cost sharing to be implemented by a CalPERS contract amendment and an additional 1% (for a total of 2%) starting January 1, 2025.

2. Swom Employees: Sworn Employees will pay the employee's 9% contribution to the retirement plan or as defined by PEPRA. Starting July 1, 2023, all Sworn Employees, "Classic" and "PEPRA" as defined by CALPERS, shall pay an additional 1% towards the employer CalPERS contribution as cost sharing to be implemented by a CalPERS contract amendment and an additional 1% (for a total of 2%) starting January 1, 2025.

C. Retiree Medical Insurance

1. Miscellaneous Employees: The City shall continue to cover eligible retirees by the City's Priblic Employees' Medical & Hospital Care Act (PEMHCA) resolution. Employees are eligible for this benefit ifthe employee has twenty (20) or more years of service with the City, remains enrolled in a CalPERS medical plan, retires from the City, and remains a CalPERS annuitant. Employees shall receive a medical insurance benefit not to exceed tmee hundred dollars ($300) per month. This section specifically makes no provision for any dependents of the retiree. The retired employee will continue to have the option to prirchase medical insurance for him-/herself and his/her dependents, as currently provided at his/her own expense.
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2. Sworn Employees: The City shall continue to cover eligible retirees by the City's Public Employees' Medical & Hospital Care Act (PEMCHA) resolution.

Employees are eligible for this benefit if the employee has twenty (20) or more years of service with the City, remains enrolled in a CalPERS medical plan, retires from tlie City witli a normal service retirement, and remains a CalPERS aiu'iuitant. In the event tl'ie Employee retires with an Industrial Disability Retirement (IDR) with CalPERS, or later converts his/her noimal service retirement to an IDR, he/she will no longer be eligible for this benefit. Once eligibility is lost, it cannot be restored under any circumstance. A retiree will be reimbursed for the actual dollar amount for the CalPERS medical insurance coverage he/she selects, fixed at a rate not to exceed the amount of the CalPERS Kaiser-Southern Califomia 2-Parly medical insurance monthly premirim rate in effect on the date of his/her retirement.

3. The City agrees to notify employees of the need to enroll or remain in a CalPERS medical benefit plan to receive this benefit at the time the employee submits the "Intent to Retire" packet.

SECTION 5 DEFERRED COMPENSATION
The City cui'rently offers defeired compensation plans to employees, enrollment in such plans is voluntary, and 011 an ongoing basis.

A. For employees hired on or before December 31, 1989: The City shall match Employee contributions up to $100 per month.

B. For employees hired on or after January 1, 1990: The City shall match Employee contributions up to $550 per month.

SECTION 6 FITNESS
A, All Employees shall receive a family membership (spouse and dependent children) at the South Gate Sports Center in the South Gate Park that will be provided at no cost and includes access to the golf course and swimming pool. This membership includes free access to all Park facilities that are open to the public, but excludes City sponsored classes that require a fee.

B. All Employees are also eligible to participate in the City's Employee Assistance Plan ("EAP") Program.

C, Physical Fitness Program: All Swom Employees shall receive special compensation of $600 each April and October for passing the Police Department's Physical Fitness Test ("PFT") in any one of the following areas: (1) cycling, (2) three-mile walk, or (3) one and one-half mile nin. The Police Department conducts fitness testing two (2) times a year. Scores are based upon the Swom Employee's gender, age, and PFT performance. Those who successfully complete their assigned segment of the "Baker to Vegas Run" are deemed to have passed the test in lieu of taking the fitness test in 14 '2A"t
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April of that particular year. A score of "good" or better sliall be deemed a passing score to entitle the recipient to receive tlie $600 payments described l'ierein. Employee paiticipation in this Physical Fitness Program is voluntary.

SECTION 7 LONG TERM DISABILITY
A. For Employees hired on or before December 31, 1992, or who were appointed to an Executive Management position covered by these Terms and Conditions of Employment on or before December 31, 2014: The City pays for Long Term Disability Insurance through Reliance Standard (or whichever other company the City may contract for similar services) for long term disability coverage.

B, For Employees hired on or after January 1, 1993, and who were appointed to an Executive Management position covered by these Terms and Conditions of Employment on or after January 1, 2015: The City pays 50% of the plan cost, should the employee choose to participate in CalPERS (or successor) offered program. 15 27!-D
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SECTION l HOLIDAY LEAVE
A. Entitlement

ARTICLE IV

LEAVE POLICIES
Employees wlio are on the payroll as of July 1st of each Fiscal Year shall be credited with appropriate Holiday Leave per Section B (below). Employees in the bargaining unit hired after the 1st of each Fiscal Year will be credited as of the date of hire with ten (10) hours of holiday leave for each designated holiday remaining in the Fiscal Year. Although the holiday leave is credited, it is not considered earned until the day of the observed holiday.

Entitled employees may be absent from work but nevertheless receive compensation at the employee's then current rate of pay on either (a) the holidays designated below; or (b) days otherwise scheduled in advance and agreedupon between the employee's supervisor and the employee.

Entitled employees shall earn Holiday Leave in increments of ten (10) hours if the employee is working or on paid leave both as the holiday occurs during the calendar year, and at the commencement of the day following the designated holiday. Holiday leave time rised shall be deducted from the hours credited in increments according to the employee work schedule.

City Holiday Leave is not intended to be carried over from one fiscal year to a succeeding fiscal year. Any rinused Holiday horirs not used at the condusion of the last full pay period of each fiscal year are deemed lost, and employees shall not receive compensation for any unused Holiday hours.

B, Holiday Observance/Hours
Each fiscal year the City shall observe the following named Holidays:

New Year's Day
Martin Luther King's Birthday
President's Day
C6sar CMvez Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Eve
Christmas Day
January 1st
Third Monday of January
Third Monday of February
Last Monday in March
Last Monday of May
July 4th
First Monday of September
Fourth Thursday of November
December 24th
December 25'h
Each fiscal year, all employees shall receive 130 hours of paid Holiday Leave subject to "Section IA, Article IV." The City will observe the ten (10) days set forth above, plus thirty (30) additional hours each year. The thirty (30) additional horirs will be applied to 16 22,-1
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effectuate a full week of closure between Christmas and New Year's Day. In the event that less than thirty (30) hours is necessary to effectuate the full week of closure, the balance of the 30 horirs will be observed as floating day(s). In the event 30 hours is insufficient to cover the holiday closure period, employees will use accrued vacation, compensation, administrative leave, and/or leave without pay.

The City will review the holidays above in April of each year and determine the date each holiday will be observed forthe coming fiscal year, which shall be issued by the Personnel Officer as the Holiday Schedule.

Employees are required to be off work on City-observed holidays. Any such employee who works on an observed holiday shall eam his/her regular rate of pay and defer any unused holiday hours to be used at a later time.

Holidays that fall on Friday or Saturday become floaters. Holidays that fall on Sunday are observed on Monday. If two-day holidays fall on Sunday/Monday, then holidays are observed Monday/ Tuesday.

SECTION 2 VACATION
A. Each employee shall earn vacation in the following manner:

1. Employees hired on or before December 31, 2014: Employees hired on or before December 31, 2014, shall earn vacation at a rate of 160 hours per year, or 6.15 hours per pay period. Accrued but rinused vacation may be carried over from year to year with no cap on the number of hours an Employee may accnie.

2. EmployeeshiredonorafterJanuaryl,2015:

One (1) to four (4) years of service:

Five (5) to nine (9) years of service:

Ten (10) or more years of service:
120 hours annually
160 hours aru'iually
200 hours aru'iually
Accrued but unused vacation may be carried over from year to yeat; however, the maximum allowable vacation accrual is three hundred and fifty (350) hours for Miscellaneous Employees and four hundred (400) hours for Sworn Employees. If an employee's vacation accrual is at the maximum level, tlie employee will not accrue additional vacation until the employee's vacation accnial is below the maximum level.

B. BynolaterthanDecemberl5ofanycalendaryear,anemployeewishingtoconveit a portion of his/her actual accumulated vacation leave to casli at the hourly rate of b ase pay then existing, shall notify the Personnel Officer in writing on a fortn to be supplied by the City of his/her cash out request, including the amount to be cashed out and acla'iowledging that tlie request is irrevocable. In order to be eligible to 17 I '7 1
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convert a portion of accumulated vacation leave to cash, an employee must maintain one l'iundred (100) hours of vacation leave within the employee's account balance after any distribution has been made. Said employee shall be entitled to request a cash distribution as follows:

1. Miscellaneous Employees:
a. Employees hired on or before December 31, 1989: Up to eighty (80) hours and sl'iall be paid the first payroll period in the following May. b. Employees hired on or after Jamiary 1, 1990: Up to forty (40) hours and shall be paid the first payroll period in the following May.

2. Sworn Employees: Up to one hundred (100) hours and shall be paid the first payroll period in the following May.

C. Upon separation of employment, Employees shall be entitled to a cashout of all unused vacation, which shall be paid at the employee's FLSA hourly rate of pay on the date of his/her separation.

SECTION 3 SICK LEAVE
A. Entitlement
Employees shall earn one hundred twenty (120) hours of sick leave per year prorated by pay period (4.62 hours/pay period). Accrued but unused sick leave may be carried over from year to year with no cap on the number of hours an Employee may accnie.

The use of sick leave is to provide the Employee paid time off when he/she is sick or injured; however, the Employee may also use sick leave to attend dental or medical appointments for him-/herself and/or his/her dependents, for purposes permitted under the FMLA/CFRA/PDL, and for any other purpose authorized under the terms of these Terms and Conditions of Employment.

B. Sick Leave Program

1. Illness or Injury Leave Notification and Verification Procedure: In the event of an absence due to illness or injury, employees must notify the City Manager prior to or at the begiru'iing of their shift starting time. Employees who are incapacitated must notify the City Manager at the earliest possible time and may have a spouse or other person contact the City Manager within the time limit specified above.

2. Employees who become ill or injured while working on the job must request approval from the City Manager to leave work. Those employees injured on the job must file a "First Report of Injury" form and receive authorization for medical treatment from the City Manager.
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The notification to tlie City Manager must include a reason for the absence that is in accordance with current law and an estimated return date. This information will be logged for future reference.

3. Failure to notify the City Manager will result in the forfeiture of the sick leave for the period of absence and n'iay result in disciplinary action.

4. All absences not due to illness or injury must be reqriested as noted in the appropriate leave sections.

5. Verification - In the event that employees have, in the City Manager's sole opinion, an absenteeism problem, an excessive use of sick leave, or have a suspicious absence of three days or longer or group of absences, the City Manager may attempt to verify the absence or proper rise of sick leave by any of the following:
e.

Telephoning the employee at home (or appropriate location).

Visiting employee at home.

A sub-rosa investigation.

A medical evaluation at the City's expense, or
A medical evaluation at the employee's expense (A licensed physician must complete the medical evaluation that must include the reason for the absence and permission to return to work.

6. Where an excessive absenteeism pattem has been established without clear justification for said leave, tlie City Manager may schedule a counseling session to determine the reasons or justification for the excessive use. The Personnel Officer shall conduct the counseling session and other attendees of the session shall include the employee, a representative chosen by the employee, if any, and the department representatives. This session shall be documented by a written summary of the abuse problems and discussion. The Personnel Officer shall issue the surnrnary and a copy distributed to attendees of the session and to the affected employee's Personnel file. The purpose of the counseling session is to improve the employee's attendance and/or wam the employee about the consequences of continued abuse. If there is a specific abuse that warrants discipline, or if the above counseling session does not correct abuses, then action will be taken to correct the abuse problem through the discipline process.

C. Sick Leave Advances
Tlie City will not provide advances in sick leave when an employee has depleted his/her sick leave balances.

D. Sick Leave Payoff

1. Sick leave accrual shall remain rinlimited. An Employee hired on or before December 31, 1992, shall be cashed orit at the hourly rate, as defined below, of pay of the Employee then existing on the date of his/her retirement from 19 ')-IU
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employment. For employees hired on or after January 1, 1993, and on or before December 31, 2002, tlie sick leave "payoff" shall be limited to 600 hours at the hourly rate, as defined below, of pay of the Employee then existing on the date of his/her retirement from employment. For employees hired on or after January 1, 2003, and on or before December 31, 2021, the sick leave "payoff" shall be limited to 450 hours at the hourly rate, as defined below, of pay of the Employee then existing on the date of his/her retirement from employment. Employees hired on or after July 1, 2022, shall not be entitled to sick leave cash-out option upon separation. Sick leave will remain available for conversion for all Employees upon retirement to CalPERS set-vice credit as then allowed by the City's CalPERS contract. Employees whose separation is for any reason other than retirement, teimination without cause, or layoff shall not be entitled to any sick leave cash out.

In order for an employee to qualify for this Sick Leave Payoff provision, the employee must have at least 15 years of continuoris service to the City of South Gate and retire from both the City and from CalPERS.

The calculation of the hourly rate a retired employee shall receive under this payoff provision shall be as follows:
15 - 19 years of service - 50% of FLSA hourly rate. 20 - 24 years of service - 75% of FLSA hourly rate. 25 years or more of service - 100% of FLSA hourly rate.

For an employee with 25 or more years of service to the City and within three years of a declared retirement, he/she may enter in a two phase payout agreement, wherein the employee shall be paid 50% of his/her total accrued sick leave ripon entering into apayout agreement. One year following the first payment of the agreement or on the date of the employee's retirement, whichever comes first, the employee's remaining balance of total accrued sick leave shall be paid. The payout amount shall be detertnined as the employee's hourly base rate at the time the payment is made.

For example, if an employee were to enter into an agreement under the terms of this provision on October 1, 2025, with 300 hours of sick leave, the first payment of 150 hours will be paid on the employee's next paycheck. The remaining balance of the employee's sick leave shall then eitlier be paid out on the paycheck following October 1, 2026, or as part of the payment of accnred leave upon retirement, whichever occurs first.

Upon entering into the agreement, the employee may request that all or a portion of the payment be to his/her deferred compensation accorint rip to the amount permitted by IRS regulations.

An employee who remains employed with the City beyond the date initially 20 '7,2-')
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anticipated in the Agreement, sliall have his/her total accrued sick leave cashed out in the last pay period of each fiscal year witli tlie exception of 80 hours, which shall remain as available sick leave rintil such time the employee retires.

Employees interested in this arrangement sliall contact the Human Resources Depaitment to prepare an agreement, which shall be signed by the employee and the City Manager. Tliis payoff agreement may be executed at any time during the 2025/26 Fiscal Year.

SECTION 4 JURY DUTY
Employees who are called for Jury Duty shall be entitled to full salary while serving on a jury. Employees are obligated to provide the City with proof of service each pay period.

Faihire to provide proof of jury service will result in the Employee using his/her own accrued leave in the following order until extinguished: vacation leave, administrative leave, and personal/emergency leave.

SECTION 5 LEAVE WITHOUT PAY
A leave of absence without pay, up to ninety (90) calendar days in any calendar year, may be granted upon the approval of the City Manager. In the case of a bona fide illness or injury, amedical leave may be grantedup to amaximum of one (l)year upon the approval of the City Manager. In the everit that an employee has no eligible leave to cover an absence from work, authorized or unauthorized, the City Manager may approve the short term leave with due consideration of the employee's work record (with possible counseling or discipline considerations). All applications for leaves of absence without pay shall be submitted to the City Manager on a Personnel Transaction Form. The City shall have sole discretion whether to grant a leave of absence without pay and the City's decision is not subject to grievance and/or appeal.

A. Catastrophic Illness/Injury
If an employee is diagnosed by a qualified Doctor of Medicine to have a catastrophic illness (in a state of total disability from cancer, heart attack, AIDS, etc.) or has a catastrophic injury (an injury thattotally disables an employee for an extendedperiod of time), the employee may be entitled to extended health benefit coverage (Medical, Dental, & Life ins.) provided by the City (in the same fashion normally provided to the employee). This benefit requires the approval of the City Manager, and is applicable wlien the employee's leave benefits are exhausted, under the following formula:

Years of Full-Time City Employment
After (2) years
After 4) years
After (7) years
After (10) years
21 Months of Continued Coverage
3 months
6 months
9 months
12 months
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SECTION 6 TERNITY LEAVE
Tlie application of the maternity leave policy is subject to applicable State and Federal laws. The employee may use accrued paid or unpaid leave as appropriate.

SECTION 7 FAMILY MEDICAL LEAVE ACT /CALIFORNIA FAMILY RIGHTS ACT Pursuant to State & Federal law, the City will provide family and medical care leave to eligible employees. The following provisions set forth employees' rights and obligations with respect to sick leave. Rights and obligations that are not specifically set foith below are set in the Department of Labor regulations implementing the Federal Family and Medical Leave Act of 1993 (FMLA), and the regulations of tlie California Fair Employment and Horising Commission implementing the Califomia Family Rights Act (CFRA). Unless otherwise provided by this section, "Leave" under this provision shall mean leave pursuant to the FMLA and CFRA.

A. Amorint of Leave - Eligible employees are entitled to a total of 480 hours of leave during any 12-month period. An employee's entitlement to leave for the birth or placement of a child for adoption or foster care expires 12 months after the birth or placement. The 12-month period for calculating leave entitlement will be a "rolling period" measured backward from the date leave is taken and continues with each additional leave day taken. Thus, whenever an employee requests leave, the City will look back over the previous 12-month period to determine how much leave has been used in determining how much leave a member is entitled to.

B. Use of Accrued Leaves While on Leave - If a member requests leave for any reasons permitted under the law, that person must exhaust all accrued leaves in coru'iection with the leave. The exhaustion of accrued leave will run concurrently with the leave.

SECTION 8 BEREAVEMENT
Employees shall be allowed time off for the death of an immediate family member, which may be taken any time within ninety (90) days of the family member's passing. This time may be taken non-consecutively at the discretion of the employee. The term "immediate family" is defined as the spouse, domestic partner, child, parent, sibling, grandparent, grandchild, or parent-in-law of the employee or other person as approved by the City Manager or his/her designee.

Upon providing documentation of the deatli of an immediate family member, the employee shall be entitled to forty (40) hours of bereavement leave, not chargeable to any other leave. If an employee does not provide documentation of death, the employee's time off shall be chargeable first as sick leave and then to any other remaining, accrued leave balance. If the employee uses the bereavement leave consecutively and wishes to extend that leave to another forty (40) liours, he/she may take such additional consecutive leave chargeable as sick leave.
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Documentation of death must be provided within 30 days of the first day of the employee's bereavement leave. Sricli documentation inctudes, but is not limited to, a death certificate, obituary, or written verification of death, burial, or memorial service from a mortuary, funeral home, burial society, crematoririm, religious institution, or government agency. The City shall keep this documentation confidential and shall not disclose it except as necessary to internal personnel or counsel, or if required by law.

Failure to provide documentation will result in any time off to be charged against the employee's sick leave and then to any other remaining, accrued leave balance.

SECTION 9 JOB RELATED INJURY OR ILLNESS
In the event of an absence due to a job-related injury or illness, any employee who is entitled to disability payments under Workers' Compensation laws shall receive from the City the difference between such disability payments and his/her full salary for the period of absence up to a maximum of four hundred eighty (480) hours for any one injury or illness. This period of forir hundred eighty (480) hours shall not be deducted from accumulated sick leave. However, any relapse at a later date shall not be compensable under this provision, although the same may be chargeable against accumulated, unused sick leave, if any.

SECTION 10 MILITARY LEAVE
Military leave is restricted to noriaily required active rluhy and rloes not apply to such matters as weekend drills, etc. Leaves of absence for active military training, service, or other active duty obligations shall be granted in accordance with California and Federal law, Applicable laws shall govern compensation, reemployment, seniority and other rights and privileges. In order to verify the right to such leave, the employee shall cause a copy of his/her orders to and from military duty to be filed with the City's Persoru'iel Officer. Military Leave is recorded on the employee's time sheet and approved by the City Manager. Employees are entitled to receive a maximum of eighty (80) hours of paid leave per fiscal year for annual military training. Employees are entitled to receive up to an additional thirty (30) days (300 hours) of paid military leave if they are called to active duty (other than annual training) in the National Guard or one of the branches of the U.S.

Military.

SECTION 11 ADMINISTRATIVE LEAVE
A. Employees will be provided Administrative Leave as follows:
1, Employees hired on or before December 31, 1989, or appointed to an Executive Management position on or before December 31, 2014: Employees hired on or before December 31, 1989, or appointed to an Executive Management position on or before December 3I, 2014, shall receive one- hundred and twenty (120) hours per year of Administrative Leave, which shall be accrued at a rate of 4.62 hours/pay period. Employees may carg over unused Administrative Leave to the following fiscal year(s) without any cap on the maximum amorint an Employee may accrue.
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2. Employees hired on or after Jamiary 1, 1990, and before December 31, 1992, and appointed to an Executive Management position on or after January 1, 2015: Employees hired on or after January 1, 1990, and before December 31, 1992, and appointed to an Executive Management position on or after January 1, 2015, shall receive one-hundred (100) hours per year of Administrative Leave, which shall be accrued at a rate of 3.85 hours/pay period. Employees may can'y over unused Administrative Leave to the following fiscal year(s) without any cap on the maximum amount an Employee may accrue.

3. Employees hired on or after January 1, 1993, and appointed to an Executive Management position on or after January 1, 2015: Employees hired on or after January 1, 1993, and appointed to an Executive Management position on or after January 1, 2015, shall receive one hundred (100) hours per year of Administrative Leave, which shall be accnied at a rate of 3.85 hours/pay period. Employees may cany over unused Administrative Leave to the following fiscal year, but at no time shall an employee maintain a balance of Administrative Leave greater than two hundred (200) hours. No administrative leave shall accrue beyond the established two hundred (200) limit until the leave balance falls below that limit.

B. By no later than December 15 of any calendar year, an employee wishing to convert a portion of his/her accumulated leave to cash out shall notify the Personnel Officer in writing on a form to be supplied by the City of his/her cash out request, including the amount to be cashed out and acla'iowledging that the request is irrevocable. Said employee shall be entitled to request a cash distribution and shall be paid the first payroll period the following May based on the following criteria:

1. For employees hired on or before December 31, 1992, or appointed to an Executive Management position on or before December 31, 2014: The employee shall be able to request a cash distribution of up to eighty (80) hours of accrued leave at the hourly rate of base pay then existing.

2. For employees hired on or after January 1, 1993, and on or before December 31, 2023, and appointed to an Executive Management position on or after January 1, 2015: The employee shall be able to request a cash distribution of up to forty (40) hours of accrued leave at the hourly rate of base pay then existing.

C, Upon separation from the City, an employee is eligible for a cash out of all Administrative Leave at the Employee's hourly rate of pay existing on the date of his/her separation.

D. Pre-Retirement Cash-Out
For an employee hired on or before December 31, 2014 and who is within three or less years of his/her normal CalPERS retirement age (e.g., 50, 55, 57, or 62), he/she may enter into an irrevocable three-year payout agreement, wherein the employee 24 381
shall be paid 33% of his/her total accrued administrative leave in the last pay period of the fiscal year in which the agreement was entered. One year following the first payment of the agreement, in tlie last pay period of the following fiscal year, the Employee shall be paid 50% of his/lier remaining total accrued sick leave balance.

Two years following the first payment of the agreement and one year following the second payment of tlie agreement, in the last pay period of the following fiscal year or on the date of the employee's retirement, whichever comes first, the employee's remaining balance of total accrued sick leave shall be paid. The payout amount shall be determined as the employee's hourly base rate at the time the payment is made.

Once these Teims and Conditions of Employment are entered and the Employee separates for any reason otlier than for teimination with cause, he/she shall be paid the remaining balance of his/her accrued administrative leave at his/her FLSA horirly rate of pay then existing on the date of his/her separation from the City.

For example, if an employee were to enter into an agreement under the terms of this provision in May 2024 with 900 hours of administrative leave, the first payment of 300 hours will be paid at in the last pay period in June of fiscal year 23/24. During the last pay period of June 2025, half of the remaining 600 hours shall be paid out. If the employee were to then retire on November 30, 2025, the remaining 300 hours shall be paid out.

Upon entering into the agreement, the employee may request that all or a portion of the payment be to his/her deferred compensation account up to the amorint permitted by IRS regulations.

An employee who remains employed with the City beyond the date initially anticipated in the agreement, shall have his/her total accrued administrative leave cashed out in the last pay period of each fiscal year.

Employees interested in this arrangement shall contact the Human Resources Department to prepare an agreement, which shall be signed by the employee and the City Manager. This payoff agreement may be executed at any time during the 2023/24 Fiscal Year.

SECTION 12 PERSONAL BUSINESS LEAVE
An Employee may use up to 50 hours in any calendar year as "Personal Business Leave," which shall be taken out of the Employee's accrued sick leave bank for any reason. 25 382

ARTICLE V

IMPLEMENT ATION OF TERMS AND CONDITIONS
SECTION l MODIFICATIONS
Any modification to these Terms and Conditions of Employment must be in writing and approved by the City Council in order for it to be effective.

SECTION 2 EFFECT OF WAIVER
The failure of any party to these Terms and Conditions of Employment to insist on strict compliance with any of the terms, covenants or conditions shall not be deemed a waiver of that term, covenant or condition. Nor shall any waiver or relinquishment of any right or power at one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

SECTION 3 ENTIRETY
Each Executive is on notice that no representations, inducements, promises, agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreements, statements or promises not contained or referenced in these Terms and Conditions of Employment shall be valid or binding on either party.
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Item No. 6
Office of ths
South Gate City Cletly Ciffl of South Gate
SEP 1 8 2025

CITY COUNCIL

CONSOLIDATED SALARY SCHEDULE FOR ALL FULL-TIME EMPLOYEES AND

SELECTED PART-TIME EMPLOYEES WITHIN CALPERS GUIDELINES PURPOSE: To approve and adopt an updated consolidated pay schedule for all full-time and selected part-time employees within the California Public Employee Retirement System (CalPERS) guidelines.

RECOMMENDED ACTION: The City Council will consider adopting a Resolution approving and adopting an updated consolidated pay schedule for all full-time and selected part-time employees within the CalPERS guidelines.

FISCAL IMPACT: There is no fiscal impact to the Fiscal Year 2025-2026 Adopted Budget.

ANALYSIS: None.

BACKGROUND: During the course of the current fiscal year, there have been several pay adjustments resulting from labor agreements, state law mandates, contract negotiations, budget approvals and reevaluations of pay, the latest of which was the approval of the City's employee Associations' MOUs and the Terms and Conditions of Employment of the Unrepresented Executive Management Group. The attached consolidated salary schedule reflects all changes made to employees' salaries and wages since the beginning of Fiscal Year 2025/26.

The consolidated salary schedule under consideration of approval by the City Council contains the

3.0% cost-of-living wage increases to all full-time employees with an effective date of September 7, 2025, and an adjustment in the full-time equivalent part-time positions to ensure their hourly rates remain in parity with their :[ull-time counterparts with an effective date of October 5, 2025, or the first day of the first full pay period following approval and adoption of this proposed resolution.

Additionally, there is correction of Life Guard, Swim Instructor, and Senior Life Guard hourly rates to be tied to the Recreation Leader series of job classifications and, therefore, these positions 1 384
are retitled to Recreation Leader II (Life Guard), Recreation Leader III (Swim Instructor), and Recreation Leader IV (Senior Life Guard).

Further, CalPERS, pursuant to its interpretation of the California Code of Regulations €3) 570.5 of the Public Employees' Retirement Law (PERL), as outlined in its January 8, 2020 Circular Letter, recommends that all CalPERS employers maintain their compensation levels in one publicly available document, approved and adopted by the governing body, which must meet all of the following criteria:
1) Hasbeendulyapprovedandadoptedbytheemployer'sgoverningbodyinaccordancewith the requirements of applicable public meetings laws; 2) Identifies the position title for every employee position; 3) Shows the pay rate for each identified position, which may be stated as a single amount or as multiple amounts within a range;
4) Indicates the time base, including, but not limited to, whether the time base is hourly, daily, bi-weekly, monthly, bi-monthly, or annually;
5) Is posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posed on the employer's internet website;
6) Indicates an effective date and date of any revisions; 7) Is retained by the employer and available for public inspection for not less than five years; and
8) Does not reference another document in lieu of disclosing the pay rate.

Under the PERL and the Public Employees' Pension Reform Act of 2013 (PEPRA), earnable compensation and pensionable compensation are determined in accordance with the amounts identified on a publicly available pay schedule as adopted and approved by the City Council. If an employer were to fail to meet with requirements of Section 570.5 as stated above, the CalPERS Board may determine at its sole discretion an amount that will be considered as a pay rate in determining what a retiree's earnable income will be, which will never be higher than the amount stated on the comprehensive salary schedule. As a result, publicly available pay schedules are required by CalPERS and are a critical component to veri:ty all members' pay rates when calculating members' retirement benefits. Finally, maintaining a compliant publicly available pay schedule will support transparency and expedite CalPERS' review process. Failure to provide CalPERS with a compliant publicly available pay schedule may result in a retirement benefit being delayed and/or reduced.

Therefore, the purpose of approving this resolution is to update the current Consolidated Salary Schedule to reflect the changes as authorized by the City Council in this agenda item and to comply with the PERL.

ATTACHMENTS: A. ProposedResolution
B. Consolidated Salary Schedule)
2 385
Attachment A
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORIA, APPROVING AND ADOPTING AN UPDATED

CONSOLIDATED SALARY SCHEDULE FOR ALL FULL-TIME

EMPLOYEES AND SELECTED PART -TIME EMPLOYEES WITHIN

CALPERS GUIDELINES
WHEREAS, on July 22, 2025, the City Council approved and adopted the Fiscal Year 2025-2026 Budget, which contained, inter alia, several persoru'iel additions and pay adjustments; WHEREAS, over the course of the current fiscal year, the City Council approved increases to full-time, part-time, and hourly salaries and wages resulting from labor agreements, state law mandates, contract negotiations, and reevaluations of pay; WHEREAS, the California Public Employee Retirement System (CalPERS) interprets the California Code of Regulations Fp 570.5 of the Public Employees' Retirement Law (PERL) to require that all CalPERS employers maintain their compensation levels in one publicly available document, approved and adopted by the governing body; WHEREAS, the City has complied with the PERL by approving and adopting the consolidated salary schedule in accordance with the requirements of its public meetings laws; WHEREAS, the Consolidated Salary Schedule identifies the position title of every employee position, shows the rate of pay for each identified position as multiple amounts within a range, that the elected officials' and full-time employees' time base is indicated as a monthly rate, and that part-time employees' time base is indicated as an hourly rate; WHEREAS, the City shall post the Consolidated Salary Schedule on its internet website; WHEREAS, the effective date of the Consolidated Salary Schedule shall be September 7, 2025 for all full-time positions and October 5, 2025 for all part-time positions; and WHEREAS, the Consolidated Salary Schedules shall be maintained by the City and available for public inspection for not less than five years from the effective date of the approval and adoption of the Consolidated Salary Schedule.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council does hereby declare that the above recitals are true and correct and incorporated herein by reference.

Page l of 2
3 386
SECTION 2. The City Council does hereby approve and adopt the proposed, updated Consolidated Salary Schedule attached hereto as Exhibit "A." SECTION 3. The City Clerk shall certi:ty the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this 23rd day of September 2025.

CITY OF SOUTH GATE:

By:

Maria Davila, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
Raul F. Salinas, City Attorney

Page 2 of 2 ends

387
City of South Gate
Attachment B
Consolidated Salaiy Schedule
Full-Time Classifications (Monthly $")
Effective 09-07-2025
As Approved Per CCM 09/23/2025 Page 1
Exhibit "A"
388
City of South Gate
Consolidated Salary Schedule
As Approved Per CCM 09/23/2025 Page 2
Exhibit "A" 389
City of South Gate
Consolidated Salary Schedule
Exhibit "A"
As Approved Per CCM 09/23/2025 Page 3
'7
390
City of South Gate
Consolidated Salary Schedule
Consolidated Salary Schedule
Unclassified Hourly Classifications (Hourly $)
Effective 10-05-2025
Grade Llnit FLSA HourlyPosition
900 Hrly NE AdministrativeAide $24.37 $25.59 $26.87 $28.21 $29.62 901 H(I)I NE BusinessLicenselnspector $32.96 $34.61 $36.34 $38.16 $40.06 922 Hyly NE City Hall Receptionist $22.02 $23.12 $24.28 $25.49 $26.77 902 Hrly NE ClericalAssistantl $20.22 $21.23 $22.29 $23.41 $24.58 903 Hrly NE ClericalAssistantll $21.89 $22.98 $24.13 $25.34 $26.61 904 Hrly NE ClericalAssistantlll $24.93 $26.'l8 $27.49 $28.86 $30.30 923 Hrly NE CodeEnforcementOfflcer $32.96 $34.61 $36.34 $38.16 $40.06 905 Hrly NE CommunityDevelopmentlntern $25.51 $26.79 $28.12 $29.53 $31.01 924 Hrly NE Community Development Technician II $27.84 $29_23 $30.69 $32.23 $33.84 925 Htly NE Community Services Officer $26.55 $27.88 $29.27 $30.73 $32.27 925 Hily NE Community Services Officer/Park Ranger $26.55 $27.88 $29.27 $30.73 $32.27 906 Hrly NE Computer Information Systems (CIS) Aide $24.19 $25.40 $26.67 $28.00 $29.40 907 Hrly NE Computer Information Systems (CIS) Aide - Police $24.19 $25.40 $26.67 $28.00 $29.40 908 Hrly NE Court Officer $25.59 $26.87 $28.21 $29.62 $31.10 940 Hrly NE Crime Scene Forensic Specialist $44.58 $46.81 $49.16 $51.61 $54.19 926 Hrly NE CustomerServiceRepresentative $26.19 $27.50 $28.87 $30.32 $31.83 927 t-lyly NE Electricianl $28.91 $30.36 $31.87 $33.47 $35.14 928 Hily NE Electrician II $32.83 $34.47 $36.20 $38.00 $39.91 909 Hrly NE EngineeringAide $25.51 $26.79 $28.12 $29.53 $31.01 929 Hrly NE EquipmentMechanic $31.09 $32.64 $34.28 $35.99 $37.79 910 Htly NE FamilyViolencePreventionSpecialist $34.68 $36.41 $38.23 $40.15 $42.15 930 Hily NE Grounds Maintenance Worker $24.89 $26.13 $27.44 $28.E11 $30.25 931 Hrly NE HousingSpecialist $32.65 $34.28 $36.00 $37.80 $39.69 944 Hrly NE Information Systems Technician $26.56 $27.89 $29.28 $30.75 $32.28 932 Htly NE IntermediateAccountClerk $26.19 $27.50 $28.87 $30.32 $31.83 933 Htly NE Intermediate Typist Clerk/Office Assistant $24.80 $26.04 $27.34 $28.71 $30.14 gu HTI)I NE Intern $16.50 !$17.33 $18.19 $1g.qo $20.06 912 Htly NE MaintenanceHelper $21.89 $22.98 $24.13 $25.34 $26.61 913 Hrly NE MaintenanceServiceWorker $27.91 $29.:31 $30.77 $32.31 $33.92 914 Hrly NE MechanicHelper $21.89 $22.98 $24.13 $25.34 $26.6i 915 stiy NE Outdoor Power Equipment Mechanic $31.64 $33.22 $34.88 $36.63 $38.46 934 Hrly NE Park Facilities Maintenance Worker $24.89 $26.13 $27.44 $28.81 $30.25 916 Hrly NE Police Cadet $27.01 $28.36 $29.78 $3127 $32.83 917 Hrly NE PoliceCustodianofRecords $29.48 $30.95 $32.50 $34.13 $35.83 943 Hrly NE PoliceDispatcher $30.87 $32.41 $34.03 $35.74 $37.52 936 Hrly NE POliCe OffiCer $45.59 $47.87 $50.26 $52.78 $55.41 935 Hrly NE Police Records Specialist $25.76 $27.05 $28.40 $29.82 $31.3'l 918 Hriy NE PoliceVehicleServiceAttendant $19.49 $20.46 $21.49 $22.56 $23.69 919 Htly NE ProgramAssistant $27.01 $28.36 $29.78 $31.27 $32.83 920 HTIV NE PublicSafetyOfficer $22.63 $23.76 $24.95 $26.20 $27.51 939 Hrly NE RecreationCoordinator $26.78 $28.12 $29.52 $31.00 $32.55 As Approved Per CCM 09/23/2025 Page 4 Exhibit "A" 391
City of South Gate
Consolidated Salary Schedule
Grade Unit FLSA Hourly Position Step A Step B Step C Step D Step E 997 Hrly NE Recreation Leaderl (Rec Aide, Malnt Aide 1, TulorAsslstanf) $16.50 $17.33 $18.19 $19.10 $20.06 996 Hily NE Recreation Leader II (RecAftendent,MaintAldell,Tutor) $18.17 $19.08 $20.03 $21.03 $22.09 993 Hrly NE Recreation Leaderll (Lifeguard) $18.17 $19.08 $20.03 $21.03 $22.09 995 Hrly NE Recreation Leader Ill (Cashier. Golf StarieQ $20.04 $21.04 $22.09 $23.20 $24.36 995 Hrly NE Recreation Leaderlll (SWim Instructor) $20.04 $21.04 $22.09 $23.20 $24.36 994 Htly NE Recreation Leader IV (Recreauon Leader, Sr. GolT StafeQ $22.09 $23.19 $24.35 $25.57 $26.85 gg2 Htly NE Recreation Leader IV (Senior Lifeguard) $22.09 $23.19 $24.35 $25.57 $26.85 921 HTIV NE ResearchAide $19.41 $20.38 $21.40 $22.47 $23.59 938 Hrly NE Secretary $29.30 $30.77 $32.30 $33.92 $35.61 998 HTIV NE StudentWorker $16.50 $17.33 $18.19 $19.10 $20.06 922 Hrly NE %pistClerk $22.02 $23.12 $24.28 $25.49 $26.77 Definitions
11NIT: Bargaining Unit
DMA DivisionManagementAssociation(Unclassified)-PayPlanCategoiyF Elected UnclassifiedElectedOfficials-PayPlanCategoryA
EXEC Executive Management Employees (Unclassified) - Pay Plan Category E MEA Municipal Employees' Association (Civil Service) - Pay Plan Category PMA PoliceManagementAssociation-PayPlanCategoryB
PMMA PtofessionalandMid-ManagementEmployees(CivilService)-PayPlanCategotyG POA Police0fficets'Association-PayPlanCategoryC
TOP Unclassified Top Management Employees - Pay Plan Category E Group: GroupofClassifications
Holy Unclassified Hourly Positions
FLSA: Fair Labor Standards Act
E Exempt
NE Non-Exempt
8ubstep: Specific only lo Police Officers' Association.

Monthly $"M6nthly salaries rounded to nearest dollar. displayed as a whole number.

As Approved Per CCM 09/23/2025 Page 5 Exhibit "A"
392
Item No. 7
0111ClI! ul ti'nt
Souih Gate City Cletlb
SEP 1 8 2U25
FILED
ll-,'5Dr
Ciffl of South Gate

CITY COUNCIL

AGENDA BULL
PRINCIPAL ACCOUNT.=U'STT POSITION IN THE ADMINISTRATIVE DEPARTMENT; THE RECLASSIFICATION OF THE FULL-TIME CITY TRAFFIC

ENGINEER POSITION TO THE FULL-TIME TRANSPORT ATION AND CAPIT AL

IMPROVEMENT PROGRAM DIVISION MANAGER IN THE PUBLIC WORKS DEPARTMENT; THE RECLASSIFICATION OF ONE (1) FULL-TIME PRINCIPAL

CIVIL ENGINEER POSITION TO THE FULL-TIME WATER RESOURCES AND DEVELOPMENT DIVISION MANAGER IN THE PUBLIC WORKS DEP ARTMENT;

AND THE ELIMINATION OF THE FULL-TIME DEPUTY CITY ENGINEER

POSITION IN THE PUBLIC WORKS DEPARTMENT
PURPOSE: Tocreatethefull-timePrincipalAccountantpositionintheAdministrativeServices Department; to reclassify the full-time City Traffic Engineer to the full-time Transportation and Capital Improvement Program Division Manager in the Public Works Department; the reclassification of one (1) full-time Principal Civil Engineer positions to the full-time Water Resources and Development Division Manager in the Public Works Department; and the elimination of the full-time Deputy City Engineer position in the Public Works Department.

RECOMMENDED ACTION: The City Council will consider adopting a Resolution to:

1. Approve the creation of the full-time Principal Accountant position in the Administrative Services Department;

2. Approve the reclassification of the full-time City Traffic Engineer to the full-time Transportation and Capital Improvement Program Division Manager in the Public Works Department

3. Approve the reclassification of one (1) full-time Principal Civil Engineer positions to the full-time Water Resources and Development Division Manager in the Public Works Department;

4. Approvetheeliminationofthefull-timeDeputyCityEngineerpositioninthePublicWorks Department; and

5. Direct staff to update the Consolidated Salary Schedule by adding the Principal Accountant, Transportation and Capital Improvement Program Division Manager, and Water Resources and Development Division Manager Titles, Pay Grades, and Pay Ranges. 1 393
FISCAL IMPACT: To fund the Principal Accountant in the Administrative Services Department, no additional appropriate is requested. The position will be funded with existing appropriations:
base salary/benefits from the budgeted Senior Accountant with any difference in FY 2025-26 covered by vacancy salary savings.

To fund the Transportation and Capital Improvement Program Division Manager and the Water Resources and Development Division Manager position in the Public Works Department, the FY 2025-26 Adopted Budged downsized the Engineering Division from three divisions to two and eliminated the Deputy City Engineer position. Savings from that elimination, along with related adjustments approved in the budget, fund the two Division Manager reclassifications. Net General Fund impact of the overall Engineering organization is $410,113 in savings. No additional appropriation is requested.

ANALYSIS: None.

BACKGROUND: The City must, from time to time, add, remove, reclassify, or otherwise adjust job classifications, job specifications and/or compensation in the Salaty Resolution and Position Classification Plan to satisfy the changing needs and demands of the City's workforce. In response to these changing needs and demands, job classification specifications must be amended to more closely match the tasks which need to be performed by employees in the City's various departments.

Administrative Services staff, Human Resources and the City Manager evaluated the needs and structure of the Administrative Services Department and are recommending the creation of the full-time Principal Accountant, which is an exempt position assigned to the Professional Mid- Management Association. The Principal Accountant will be paid from $8,468/month to $10,293/month. The Principal Accountant will lead day-to-day Citywide accounting operations, and financial reporting, will supervises professional and technical accounting staff (e.g., general ledger/financial reporting, accounts payable/receivable, payroll interface/reconciliation, fixed assets, grants, project/cost accounting), will manage the month-end and year-end close, will coordinate external audit fieldwork and produces the Annual Comprehensive Financial Report (ACFR) and related regulatory reports, will ensure compliance with GAAP/GASB and internal controls, and will perform other related duties.

As part ofthe City Council's approval of the City's FY 2025/26 Adopted Budget, the Public Works Department's Engineering Division was reorganized and downsized from three divisions to two through the elimination of the Deputy City Engineer position, the freezing of one (1) Principal Civil Engineer position, and downgrading to three (3) Assistant Engineers. To absorb these changes, responsibilities were consolidated: the Traffic Engineering Section was expanded to oversee the full Capital Improvement Program, while the Water Resources Section was expanded to include Development Services. To manage these broader scopes, the two Division Manager positions were created by rescoping the former City Traffic Engineer and Principal Civil Engineer (Water Resources) roles. This restructuring streamlines operations, ensures proper oversight of expanded responsibilities, and it reduces overall General Fund costs. 2 394
The Public Works staff, Human Resources, and the City Manager also evaluated the needs and structure of the Public Works Department and are recommending the reclassification of the full- time Deputy Traffic Engineer to the full-time Transportation and Capital Improvement Program Division Manager, which is an exempt position and assigned to the Division Management Association. This position will bepaid from $12,309/month to $14,962/month. The Transportation and Capital Improvement Program Division Manager will be responsible for managing all aspects of the City's transportation and capital improvement program functions. It's responsibilities will include oversight ofthe Capital Improvement Program, multimodal transportationplaru'iing, traffic engineering, mobility improvements, environmental compliance, and the delivery of capital projects; supervising engineering staff and managing contracts. Further, it will ensure regulatory and policy compliance, oversee grant funding, interdepartmental and inter-agency coordination, regulatory compliance, and implementation of the City's Capital Improvement Program.

Additionally, the Public Works staff, Human Resources, and the City Manager are recommending the reclassification of one (1) full-time Principal Civil Engineer position to the full-time Water Resources and Development Division Manager, which is also an exempt position, assigned to the Division Management Association, and will be paid at the same grade and rate as the Transportation and Capital Improvement Program Division Manager position. The Water Resources and Development Division Manager will be responsible for supervising and managing major functions of the Division related to water resources, environmental engineering, development review, and capital improvement project delivery. Its responsibilities will also include managing the plaru'iing, design, environmental compliance, and construction of capital projects. It will supervise engineering staff, coordinate with agencies and developers, and ensure regulatory compliance and successful implementation of the City's Capital Improvement Program.

The pay table for these positions shall be:

A B C D E
Principal Accountant 8468 8891 9336 9803 10293
Transportation & CIP Engineering Division
Manager 12309 12925 13571 14250 14962
Water Resources & Development Division
Manager 12309 12925 13571 14250 14962
Finally, because of the reorganization of the Public Works Department's Engineering duties, the position of Deputy City Engineer is no longer needed, the savings of which are used to support the two reclassified division manager positions, and therefore staff recommends that it be eliminated.

ATTACHMENT: Proposed Resolution
3 395
Attachment A
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORNIA, APPROVING THE CREATION OF THE FULL- TIME PRINCIPAL ACCOUNTANT POSITION m THE
ADMINISTRATIVE SERVICES DEPARTMENT; THE

RECLASSIFICATION OF THE FULL-TIME CITY TRAFFIC ENGINEER

POSITION TO THE FULL-TIME TRANSPORTATION AND CAPITAL

IMPROVEMENT PROGRAM DIVISION MANAGER IN THE PUBLIC WORKS DEPARTMENT; THE RECLASSIFICATION OF ONE (l) FULL-

TIME PRINCIP AL CIVIL ENGINEER POSITION TO THE FULL-TIME

WATER RESOURCES AND DFI,VELOPMENT DIVISION MANAGER IN THE PUBLIC WORKS DEPARTMENT; AND THE ELIMINATION OF

THE FULL-TIME DEPUTY CITY ENGINEER POSITION IN THE

PUBLIC WORKS DEPARTMENT
WHEREAS, the City must, from time to time, add or otherwise adjust job classifications, job specifications and/or compensation in the Salary Resolution and Position Classification Plan in order to satisfy the changing needs and demands of the workforce and to more closely match the tasks which need to be performed by employees in the City's various departments;
WHEREAS, the City desires to create the job classification of Principal Accountant in the Administrative Services Department;
WHEREAS, the City desires to reclassify the job classification of City Traffic Engineer to Transportation and Capital Improvement Program Division Manager in the Public Works Department;
WHEREAS, the City desires to reclassify the job classification of one (1) of the Principal Civil Engineer to Water Resources and Development Division Manager in the Public Works Department;
WHEREAS, the City desires to eliminate the job classification of Deputy City Engineer in the Public Works Department; and
WHEREAS, the City desires to direct staff to update the consolidated salary schedule to add the positions, pay grades (to later be assigned by staff), and salaries for the positions of Principal Accountant, Transportation and Capital Improvement Program Division Manager, and Water Resources and Development Division Manager, and to remove the position of Deputy City Engineer.

Pagelof3
396

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council does hereby declare that the above recitals are true and correct and incorporated herein by reference.

SECTION 2. The City Council hereby approves and adopts the proposed amendments to the City's Position Classification Plan to approve the addition of the position of Principal Accountant in the Administrative Services Department;
SECTION 3. The City Council hereby approves and adopts the proposed amendments to the City's Position Classification Plan to approve the reclassification of the City Traffic Engineer position to Transportation and Capital Improvement Program Division Manager in the Public Works Department;
SECTION 4, The City Council hereby approves and adopts the proposed amendments to the City's Position Classification Plan to approve the reclassification of one (1) of the Principal Civil Engineer positions to Water Resources and Development Division Manager in the Public Works Department
SECTION 5. The City Council hereby approves and adopts the proposed amendments to the City's Position Classification Plan to eliminate the Deputy City Engineer position in the Department of Public Works;
SECTION 6, The City Council hereby approves and directs staff to update the consolidated salary schedule to add the positions, pay grades (to later be assigned by staff), and salaries for the positions of Principal Accountant, Transportation and Capital Improvement Program Division Manager, and Water Resources and Development Division Manager, and to remove the position of Deputy City Engineer as follows
A B c D E
Principal Accountant 8468 8891 9336 9803 10293
Transportation & CIP Engineering Division
Manager 12309 12925 13571 14250 14962
Water Resources & Development Division
Manager 12309 12925 13571 14250 14962
[The remainder of this page left intentionally blank] Page2of3
t5
397
SECTION 7. The City Clerk shall certify to the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this 23rd day of September 2025.

CITY OF SOUTH GATE:

By:

Maria Davila, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FO :

By:

Raul F. Salinas, City Attorney
Page3of3
398
Item No. 8
Office ofthe
South Gale City Cleik
SEP 1 8 2025 C'Uy of South Gate

FILED CITY COUNCIL
""" AGENDA BT[LL
For the Regular Meeting of September 23, 2025
Originating nt: Administrative Services
A
T austo RobHouston
SUBJECT: AGREEMENT WITH SIMPLER SYSTEMS. INC. FOR FINANCIAL

REPORTING SOFTWARE LICENSING AND PROFESSIONAL SERVICES :uiS f A
PURPOSE: To approve a Professional Services Agreement with Simpler Systems, Inc. ("Simpler") to accelerate financial reporting, audit support, and budget development in the City's Tyler Eden environment.

RECOMMENDED ACTIONS: The City Council will consider:
a. Approving a Professional Services Agreement with Simpler, to provide financial reporting software ("Simpler Platform") and related professional services with a not-to-exceed amount of $51,380 (License $17,500 + Professional Services $30,800 + 10% contingency $3,080), and ongoing Monthly License & Maintenance of $1,750 (aru"iualized $21,000), subject to annual appropriation.
b. Authorizing the issuance of a Purchase Order to Simpler, by a sole-source determination based on proprietary functionality and its "datapps" architecture and market uniqueness for Eden-based financial reporting, pursuant to SGMC § 1.54.510. c. Authorizing the Mayor to execute the Agreement, in a form acceptable to the City Attorney.

FISCAL IMPACT: Approval authorizes $51,380 in one-time costs (License $17,500; Professional Services $30,800; 10% contingency $3,080) and ongoing $1,750/month ($21,000/year) for License & Maintenance. Funding will be appropriated from the Information Technology Fund and recorded in Account No. 522-305-12-6101; ongoing costs will be budgeted in future fiscal years.

BACKGROUND: The City uses Tyler Eden for core financials. While Eden and a library of ad- hoc Crystal Reports have supported daily operations and audits, both are labor-intensive to maintain and adapt. Each chart-of-accounts change (e.g., new funds or object codes) requires manual report edits and re-testing, and many outputs still need hand formatting for departments or auditors. The City has no in-house specialist for generating Crystal Reports, creating a bottleneck 1 399
and schedule risk, and requires the hiring of contractors to assist with Crystal Report development and troubleshooting.

Because Eden's native reports and Crystal Reports outputs are not optimized for flexible analysis, staff spend significant time extracting, reshaping, and reconciling data for routine monthly closes, budget development, and audit requests. This slows decision-making and increases reliance on a few technical users.

Simpler provides a browser-based reporting layer that unlocks Eden data for self-service analysis and standardized financial statements. It delivers roll-ups with drill-down to transactions in a format that departments and auditors can use without custom coding. Simpler can also serve as the repository for historical Eden data during any future ERP transition, preserving continuity and minimizing change-management impacts when the City migrates platforms.

ANALYSIS: Simpler will provide an enterprise (unlimited-user) license for Eden-focused "datapps," including Statements & Summaries (with budget), Transactions, Purchasing/Payables, Vendors, and Budget. Services include installation/configuration, limited customization, training, and ongoing support.

For over 25 years, Simpler has specialized in governrnent finance reporting and adjacent data domains (e.g., utility billing, permitting, HR, public safety). The product is designed from an end- user perspective-templates and filters reflect how finance and departments consume data-so users can navigate from summary views to entry-level detail with minimal training. Vendor staff build and validate queries with the City's data, reducing rework and accelerating adoption.

Key advantages:
* Automatically adapts to new Chart of Accounts codes and values-no recurring Crystal Reports rewrites.
* Near real-time, self-service access-fewer ad hoc data pulls or report tickets. * Intuitive UI-low training overhead; broad adoption outside Finance. * Reduces single-point-of-failure risk-knowledge is embedded in the tool, not one report writer.
* Drill-down from statements to transaction detail to validate anomalies quickly. * Simple export and sharing-PDF/Excel/CSV and URL links for point-in-time views. * 100% browser-based-no desktop installs; minimal IT support required.

Sole Source Determination. Staff recommends the City Council waive the RFP process under Administrative Regulation 206 (per SGMC § 1.54.350) and approve a sole-source award to Simpler Systems based on the following: (1) Simpler offers a proprietary, Eden-specific reporting layer with unique compatibility/standardization advantages that cannot be reasonably replicated by other vendors without materially greater cost and effort; (2) the solution allows unlimited users, minimal IT lift, and drill-down to transaction detail; and (3) timing and continuity needs for audit/budget cycles favor this selection in the City's best interest.

Finance staff expects immediate productivity gains-especially for the annual audit-by eliminating manual reformatting, standardizing auditor-ready statements, and enabling secure 2 400
read-only access for external auditors as needed. In the near term, this can save days to weeks of staff effort across audit and budget cycles.

ATTACHMENT: A. Professional Services Agreement - Simpler Systems, Inc.

B. Exhibit A - Simpler Systems Proposal
C. Exhibit B - Simpler Sole Source Justification
3 401
Attachment A

AGREEMENT FOR PROFESSIONAL SERVICES

FOR FINANCIAL REPORTING SOFTWARE LICENSING & PROFESSIONAL

SERVICES BETWEEN THE CITY OF SOUTH GATE AND
SIMPLER SYSTEMS, INC.

This Agreement for Professional Services for Financial Reporting So:ttware Licensing & Professional Services ("Agreement") is made and entered into on September 23, 2025, by and between the City of South Gate, a municipal corporation ("City"), and Simpler Systems, Inc., a California corporation ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."

RECIT ALS
WHEREAS, City desires to procure financial reporting software and related professional services to enhance reporting and analytics for Tyler Eden Financials; WHEREAS, Consultant warrants it has the requisite skills, knowledge, qualifications, manpower and expertise to perform properly and timely the professional services under this Agreement; and
WHEREAS, based on such representation, City desires to contract with Consultant to perform the services described in the Scope of Services attached hereto as Exhibit "A" (Consultant's proposal).

NOW, THEREFORE, the Parties agree as follows:

1. SCOPE OF SERVICES. City hereby engages Consultant Platform, and Consultant accepts such engagement, to provide (i) software licensing for Simpler for Tyler Eden Financials ("Simpler Platform"), and (ii) related professional services including installation/configuration, analysis/support, customization, and training, all as more fully described in Exhibit "A" (Consultant's proposal). The Scope of Services may be mutually amended from time to time by both Parties in writing.

2. COMPENSATION FOR SERVICES

2.1 Not-to-Exceed for One-Time Fees. The total not-to-exceed (NTE) amount for one-time fees (software license and implementation services) under this Agreement is Fifty-One Thousand Three Hundred Eighty Dollars ($51,380) as described in Consultant's proposal attached hereto as Exhibit "A," consisting of: (a) License: Seventeen Thousand Five Hundred Dollars ($17,500); and (b) Professional Services: Thirty Thousand Eight Hundred Dollars ($30,800) (estimated 140 hours at $220/hour; time-and-materials, invoiced monthly); and (c) 10% Contingency: Three Thousand and Eighty Dollars ($3,080).

2.2 Recurring License & Maintenance. In addition to the one-time amounts above, ongoing Monthly License & Maintenance fees are One Thousand Seven Hundred Fi:[ty 402
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Dollars ($1,750) per month, prorated for partial months. Recurring charges are subject to annual budget appropriation and issuance of a purchase order each fiscal year and shall not exceed Twenty-One Thousand Dollars ($21,000) per fiscal year unless otherwise authorized in writing. Per Exhibit A, the Monthly License & Maintenance period will commence upon the City's validation of delivered data and functionality to satisfy the scope in Exhibit A.

2.3 Invoicing & Payment. Consultant shall invoice no more frequently than monthly. City shall pay undisputed invoices within forty-five (45) days of receipt. Travel time between Consultant's office and City Hall is not billable unless expressly approved in advance.

2.4 No Other Compensation. No additional compensation shall be paid for expenses unless first approved in writing by the City's Director of Administrative Services or designee.

Progress or partial payments shall not constitute acceptance.

3. TERM OF AGREEMENT. This Agreement is effective as of September 23, 2025. One-time implementation services shall continue until project completion unless earlier terminated per this Agreement. Recurring Monthly License & Maintenance shall continue month-to-month, subject to annual appropriation, until terminated pursuant to Section 6.

4. CITY AGENT. The Director of Administrative Services ("Director"), or designee, is City's agent for purposes of approvals/authorizations under this Agreement.

5. CONFLICT OF INTEREST. Consultant represents that it presently has no interest and shall not acquire any interest, direct or indirect, in any real property located in the City which may be affected by the services to be performed by Consultant under this Agreement. Consultant further represents that in performance of this Agreement, no person having any such interest shall be employed by it. Within ten (10) days, Consultant agrees that it will immediately notify City of any other conflict of interest that may exist or develop during the term of this Agreement.

5.1 Consultant represents that no City employee or official has a material financial interest in Consultant's business. During the term of this Agreement and/or as a result of being awarded this contract, Consultant shall not offer, encourage, or accept any financial interest in Consultant's business or in this Agreement by any City employee or official.

6. GENERAL TERMS AND CONDITIONS

6.1 Termination for Convenience. City may terminate this Agreement at any time without cause by giving fi'fteen (15) days written notice to Consultant of such termination and specifying the effective date thereof. In that event, all finished or unfinished documents and other materials shall, at the option of City, become its property. If this Agreement is terminated by City as provided herein, Consultant will be paid the total amount of its costs as of the termination date. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Agreement. 5 403
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6.2 Termination for Cause.

6.2.1 City may, by written notice to Consultant, terminate the whole or any part of this Agreement in any of the following circumstances:
a. If Consultant fails to perform the services required by this Agreement within the time specified herein or any authorized extension thereof; or b. If Consultant fails to perform the services called for by this Agreement or so fails to make progress as to endanger performance of this Agreement in accordance with its terms, and in either of these circumstances does not correct such failure withing a period of ten (10) days (or such longer period as City may authorize in writing) a'Jter receipt of notice from City specifying such failure.

6.2.2 In the event City terminates this Agreement in whole or in part as provided above in Subsection 6.2.1, City may procure, upon such terms and in such manner as it may deem appropriate, services similar to those terminated.

6.2.3 If this Agreement is terminated as provided above in Subsection 6.2.1, City may require Consultant to provide all finished or iu'ifinished documents, data, studies, drawings, maps, photographs, reports, films, charts, sketches, computations, surveys, models, or other similar documentation prepared by Consultant. Upon such termination, Consultant shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents whether delivered to City or in possession of Consultant, and to authorized reimbursement expenses.

6.2.4 If, after notice of termination of the Agreement under the provisions of Subsection 6.2.1 above, it is determined, for any reason, that Consultant was not in default, or that the default was excusable, then the rights and obligations of the Parties shall be the same as if the notice of termination had been issued pursuant to Subsection 6. 1. above.

6.3 Non-Assignability. Consultant shall not assign or transfer any interest in this Agreement without the express prior written consent of City.

6.4 Non-Discrimination.

6.4.1 Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of to race, creed, gender, gender identity (including gender expression), color, religion, ancestry, sexual orientation, 404
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national origin, disability, age, marital status, family/parental status, or veterarffmilitary status, in the performance of its services and duties pursuant to this Agreement and will comply with all applicable laws, ordinances and codes of the Federal, State, and County and the City governments. Consultant will take affirnnative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, disability, or age.

Consultant will take affirmative action to ensure that all employment practices, including those of any subcontractors retained by Consultant to perform services under this Agreement, are free from such discrimination. Such employment practices include, but are limited to: hiring, upgrading, demotion, transfer, recruitment, recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.

6.4.2 The provisions of Subsection 6.4.1 above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for personnel to perform any services under this Agreement. City shall have access to all documents, data, and records of Consultant and its subcontractors for purposes of determining compliance with the equal employment opportunity and non- discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 (relating to federal restrictions against discriminatory practices) is available for review and on file with the City Clerk's Office.

6.5 Insurance. Consultant shall submit to City, certificates indicating compliance with the following minimum insurance requirements no less than one (1) day prior to begiru'iing of performance under this Agreement:

6.5.1 Workers Compensation Insurance as required by law. Consultant shall require all subcontractors similarly to provide such workers' compensation insurance for their respective employees.

6.5.2 Comprehensive general and automobile liability insurance protecting Consultant in amounts not less than $1,000,000 for personal injury to any one person, $1,000,000 for injuries arising out of one occurrence, and $500,000 for property damages or a combined single limit of $1,000,000, with an aggregate of $2,000,000. Each such policy of insurance shall:
a. Be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California or which is approved in writing by City.
b. Name and list as additional insured the City, its officers and employees. 405
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c. Specify its acts as primary insurance.
d. Contain a clause substantially in the following words: "It is hereby understood and agreed that this policy shall not be canceled except upon thirty (30) days prior written notice to City of such cancellation or material change."
e. Cover the operations of Consultant pursuant to the terms of this Agreement.

6.6 Indemnification. Consultant agrees to indemni'fy, defend and hold harmless City and/or any other City agency, including other employees, officers and representatives, for/from any and all claims or actions of any kind asserted against City and/or any other City agency arising out of Consultant's (including Consultant's employees, representatives, products and subcontractors) negligent performance under this Agreement, excepting only such claims or actions which may arise out of sole or active negligence of City and/or any other City agency, or any third parties not acting on behalf of, at the direction of, or under the control of Consultant.

6.7 Compliance with Applicable Law. Consultant and City shall comply with all applicable laws, ordinances, and codes of the Federal, State, County and City governments, without regard to conflict of law principles.

6.8 Independent Contractor. This Agreement is by and between City and Consultant and is not intended, nor shall it be construed, to create the relationship of agency, servant, employee, partnership, joint venture, or association, as between City and Consultant.

6.8.1 Consultant shall be an independent contractor and shall have no power to incur any debt or obligation for or on behalf of City. Neither City nor any of its officers or employees shall have any control over the conduct of Consultant, or any of Consultant's employees, except as herein set forth, and Consultant expressly warrants not to, at any time or in any manner, represent that it, or any of its agents, servants or employees are in any manner employees of City, it being distinctly understood that Consultant is and shall at all times remain to City a wholly independent contractor and Consultant's obligations to City are solely such as are prescribed by this Agreement.

6.8.2 Indemnification of CalPERS Determination. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of City, Consultant shall indemni'fy, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as, for the payment of any penalties and interest on such contributions which would otherwise be the responsibility of City.
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6.8.3 Business License Required. According to Title 2.08.40 of the South Gate Municipal Code, a business license will be required prior to doing business within the City, even if the business is located outside of the City. Verification of a valid South Gate business license will be required prior to start of work and any fees associated with the acquisition or maintenance of such business license shall be the sole responsibility of Consultant.

6.9 Consultant's Personnel.

6.9.1 All services required under the Agreement will be performed by Consultant, or under Consultant's direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services, including, without limitation, a City of South Gate business license as required by the South Gate Municipal Code.

6.9.2 Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Agreement, and compliance with all reasonable performance standards established by City.

6.9.3 Consultant shall be responsible for payment of all employees' and subcontractors' wages and benefits and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance and Social Security.

6.9.4 Consultant shall indemnify and hold harmless City and all other related entities, officers, employees and representatives from any liability, damages, claims, costs, and expenses of any nature arising from alleged violations of persoru'iel practices or of any acts of omissions by Consultant in coru'iection with the work performed arising from this Agreement.

6.10 Copyright. No reports, maps or other documents produced in whole or in part under this Agreement shall be the subject of an application for copyright by or on behalf of Consultant.

6.11 Legal Construction.

6.11.1 This Agreement is made and entered into in the State of California and shall in all respects be interpreted, enforced, and governed under the laws of the State of California without regard to conflict of law principles.

6.11.2 ThisAgreementshallbeconstruedwithoutregardtotheidentityofthepersons who drafted its various provisions. Each and every provision of this Agreement shall be construed as though each of the parties participated equally in the 407
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drafting of same, and any rule of construction that a dociunent is to be construed against the drafting party shall not be applicable to this Agreement.

6.11.3 The article and section, captions and headings herein have been inserted for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.

6.11.4 Whenever in this Agreement the context may so require, the masculine gender shall be deemed to refer to and include the feminine and neuter, and the singular shall refer to and include the plural.

6.12 Counterparts. This Agreement may be executed in counterparts and, as so executed, shall constitute an agreement which shall be binding upon all Parties hereto.

6.13 Final Payment Acceptance Constitutes Release. The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished, or relating to Consultant's work or services. Acceptance of payment shall be any negotiation of City's check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, sub-consultants and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, sub-consultants and agents.

6.14 Corrections. In addition to the above indemnification obligations, Consultant shall correct, at its expense, all errors in the work which may be disclosed during City's review of Consultant's report or plans. Should Consultant fail to make such correction in a reasonably, timely manner, such correction shall be made by City, and the cost thereof shall be charged to Consultant.

6.15 Files. All files of Consultant pertaining to City shall be and remain the property of City.

Consultant will control the physical location of such files during the term of this Agreement and shall be entitled to retain copies of such files upon termination of this Agreement.

6.16 Waiver; Remedies Cumulative. Failure by a Party to insist upon the performance of any of the provisions of this Agreement by the other party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Party's right todemandcompliancebysuchotherPartyinthefuture. NowaiverbyaPartyofadefault or breach of the other party shall be effective or binding upon such a Party unless made in writing by such Party, and no such waiver shall be implied from any omissions by a Party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, or cover any other )O
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period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a Party under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy.

6.17 Mitigation of Damages. In all such situations arising out of this Agreement, the Parties shall attempt to avoid and minimize the damages resulting from the conduct of the other Party.

6.18 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in fiill force without being impaired or invalidated in any way.

6.19 Attorneys' Fees. The Parties hereto acknowledge and agree that each will bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the negotiation, dra'Jting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any Party hereto to enforce this Agreement, the prevailing Party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that Party or those Parties may be entitled.

6.20 Entire Agreement and Amendments. This Agreement constitutes the whole agreement between City and Consultant, and neither party has made any representations to the other except as expressly contained herein. Neither party, in executing or performing this Agreement, is relying upon any statement or information not contained in this Agreement. Any amendments, changes or modifications to this Agreement must be made in writing and appropriately executed by both City and Consultant.

6.21 Notices. Any notice required to be given hereunder shall be deemed to have been given by email transmission with confirmation of delivery and depositing said notice in the United States mail, postage prepaid, and addressed as follows:

TO CITY:

City of South Gate
Luis Frausto, Director of Administrative Services
8650 California Avenue
South Gate, CA 90280
Email: lfrausto(,sogate.org
TEL: (323) 563-9522
WITH COURTESY COPY TO:

City of South Gate
Yodit Glaze, City Clerk
8650 California Avenue
South Gate, CA 90280
Email: yglaze(a,sogate.org
TEL: (323)563-9510
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TO CONSULT ANT:

Simpler Systems, Inc.

Attn: Keri Collins, Authorized Representative
PO Box 2303
Santa Barbara, CA 93120
Email: [email protected]; [email protected] Tel: 805-612-6673 805-882-1848

6.22 City Data Ownership; Access, Return & Deletion. As between the Parties, the City exclusively owns all City Data. "City Data" means any data, records, content, files, tables, schemas, configurations, mapping and parameter values, report definitions, audit/usage logs to the extent they describe the City's use, and any derivative data generated from or about the City's data or systems (excluding Consultant's pre-existing software, tools, and generic analytics that do not identify the City). City Data is not Consultant's Confidential Information.
(a) Limited License to Process. Consultant is granted a limited, non-exclusive, non-transferable license to host, copy, transmit and process City Data solely to provide the Services under this Agreement and to maintain security and service quality. No advertising, data-brokering, resale, or unrelated analytics are permitted.

Any de-identified analytics must not identify the City. (b) No Lien; No Withholding. Consultant shall have no lien, lock, or right to withhold City Data. In any payment dispute or suspension, Consultant shall continue to provide the City with prompt, self-service export access to all City Data. (c) Location & Subprocessors. City Data will be stored and processed within the United States unless the City gives prior written consent. Consultant is responsible for its subcontractors and will flow down obligations in this Section to all approved subprocessors
(d) Access & Export. Upon request and at no additional cost (reasonable frequency), Consultant will provide complete exports of City Data in non-proprietary, machine-readable formats (e.g., CSV/JSON and database backups as applicable), along with data dictionaries and schema documentation sufficient for independent reuse in other systems.
(e) Return&Deletion.Withinthirty(30)daysaftertermination/expirationortheCity's written request, Consultant shall return all City Data and certify deletion from Consultant systems. Backup media containing City Data shall be purged within ninety (90) days thereafter, subject to legal holds. (f) Public Records. Consultant acknowledges the City's obligations under the California Public Records Act and will reasonably assist the City in responding to 410
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requests involving City Data. Consultant will not designate City Data as Consultant's proprietary information.
(g) Survival; Precedence. Consultant's obligations in this Section survive termination and control over any conflicting provision in Exhibit A or Consultant policies.

6.23 Data Security; Breach Notification.
(a) Security Program. Consultant shall implement and maintain an information security program aligned to generally accepted standards (e.g., NIST CSF and CIS Critical Security Controls IGI/IG2) appropriate to the nature of the Services and City Data. (b) Minimum Controls. Controls shall include: multi-factor authentication for administrative access; least-privilege role-based access; endpoint protection; secure software development practices; quarterly vulnerability scanning; timely patching of high/critical vulnerabilities; change management; and Jogging/monitoring of security-relevant events for at least 90 days online and 1 year archived. (c) Encryption. Consultant shall encrypt City Data in transit (TLS 1.2 or higher) and at rest using industry-standard strong encryption (e.g., AES-256 or equivalent). (d) Hosting & Network Security. Whether City- or Consultant-hosted, environments shall be segmented, hardened, and regularly updated. Default credentials are prohibited. Remote access shall use MFA and secure protocols only. (e) Backups & Continuity. Consultant shall maintain backups and a business continuity/disaster recovery plan suitable for the Services. Upon request, Consultant will disclose target RPO/RTO and test results summary. (f) Personnel & Subprocessors. Consultant shall ensure personnel and approved subprocessors with access to City Data are subject to confidentiality obligations and receive security awareness training at least annually. Consultant remains fully responsible for subprocessors' compliance.
(g) Security Reviews. Upon reasonable notice (no more than aru'iually), Consultant will complete the City's security questionnaire and provide available third-party attestations or summaries (e.g., SOC 2 report letter, penetration test executive summary), which may be redacted for confidentiality. (h) Incident Definition. A "'Security Incident" means any actual or reasonably suspected unauthorized access to, acquisition of, or use, disclosure, alteration, or destruction of City Data; or material compromise of the systems that process or store City Data. (i) Notification. Consultant shall notify the City's Director (or designee) of any Security Incident without undue delay and no later than seventy-two (72) hours a'fter 13 411
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discovery, providing known details, including nature of the incident, systems/data affected, mitigation steps taken, and contact information for incident coordination. (j) Cooperation & Remediation. Consultant will promptly take all reasonable steps to contain, investigate, and remediate the Security Incident at its own expense to the extent the incident was caused by Consultant or its subprocessors. Consultant will provide updates upon request and a written root-cause analysis and corrective action plan within fifteen (15) business days after containment. (k) Communications. Consultant shall not notify third parties, regulators, or the public about a Security Incident involving City Data without City's prior written approval, except where required by law, in which case Consultant will coordinate with City to the extent legally permissible.
(1) No Ransomware Engagement Without Direction. Consultant shall not make payments to or otherwise engage threat actors regarding City systems or City Data without the City's express written direction.
(m) Survival; Precedence. Obligations in this Section survive termination and control over any conflicting provision in Exhibit A or Consultant policies.

6.24 Software-Specific Terms; Order of Precedence
(a) License Grant. During the term, Consultant grants City a non-exclusive, non- transferable license to use the Simpler Platform to provide data services to City users of Tyler Eden Financials, as described in Exhibit A. All rights not expressly granted are reserved by Consultant.
(b) Maintenance & Support. Consultant will provide incident intake via in-app feedback, email, or phone during support hours; version upgrades, enhancements, and bug fixes may be provided as described in Exhibit A at no additional charge beyond the Monthly License & Maintenance fee.
(c) Hosting & Access. The application and databases may be hosted by City or Consultant. If City-hosted, Consultant shall have remote access consistent with City standards for remote access; City is responsible for OS/security patching and adjacent software on City-hosted servers per Exhibit A. (d) Warranty/Disclaimers. The City does not accept "as-is" warranty limitations that conflict with City's rights under this Agreement. To the extent Exhibit A includes warranty disclaimers, the Parties agree the Agreement controls in the event of a conflict, provided that Exhibit A's functional descriptions and service processes are incorporated.
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(e) Order of Precedence. In case of a conflict between this Agreement and Exhibit A, this Agreement goyerns, except for (1) detailed scope descriptions, (2) pricing line-items and rate tables, and (3) implementation/support process details expressly stated in Exhibit A, which shall supplement this Agreement.

6.25 Warranty of Authorized Signatories. Each of the signatories hereto warrants and represents that he or she is competent and authorized to enter into this Agreement on behalf of the Party forwhom he or she purports to sign.

6.26 Consultation with Attairney. Consultant warrants and represents that it has consulted with an attorney or knowingly and voluntarily decided to forgo such a consultation.

6.27 Interpretation Against Drafting Party. City and Consultant agree that they have cooperated in the review and drafting of this agreement. Accordingly, in the event of any atnbiguity, neitherParty may claimthat the interpretatxon of this Agreement shall be construed against either Party solely because that Party drafted all or a portion of this Agreement, or the clause at issue.

7. CALIFORNIA LEVINE ACT DISCLOSURE STATEMENT. In accordance with California SB1439 extendedrequirements under Government Code Section 84308, also known as the "Levine Act," a disclostme must be filed ofpolitical contributions totaling more than two hundred fifty dollars ($250) within the previous twelve (12) months, and for three (3) months following the date a final decision is made to award an agreement. Therefore, the City requires that Consultant fill out the California Levine Act Disclosure Statement form available on the City website and submit it to the City Clerk's Office prior to the approval of this Agreement.

8. EFFECTIVE DATE. The effective date of this Agreement is September 23, 2025, and will remain in effect through auid until project completion, unless otherwise terminated in accordance with the terms of this Agreement.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized.

CITY OF SOUTH GATE:

B7:

Maria Davila, Mayor
Dated:

ATTEST:

B7:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

B7:

Raul F. Salinas, City Attorney
SIMPLER SYSTEMS, INC.:

B7:

Richard Schaffer, Simpler System, Inc.

Dated:
l(o
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EXHIBIT A
Simpler for Tyler Eden Financials Licensing & Professional Services (Proposal - Incorporated)
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Simpler for Tyler Eden Licensing & Professional Services 2

1. PRalECTTfnE
Simpler for Tyler Eden Financials Licensing & Professional Services II. ABOUTSIMPIER
The Simpler Platform is used to create datapps for any type of data. The user interface is simple, elegant, and intuitive. No matter what the data disposition is of a given organization, datapps increase data IQ by putting the data in the hands of those that want and need it the most.

Our proprietary datapps are based on pools of data with which users interact or navigate. Navigate means filtering, sorting, aggregating, and grouping. You can drill down from the summarized data to the detailed pool or quickly aggregate (summarize). Each datapp can produce hundreds, even thousands of "reports," which anyone can run on their own.

The result is transparent data, with broader, deeper, and faster access to it. This is true for both the professionals managing the Tyler Eden implementation as well as for the users, post go-live.

IH. Sa)PE
The scope of the project is for an enterprise application license for the Simpler for Tyler Eden Financial datapps and professional services.

The Tyler Eden datapps include the following Finance datapps:
* Statements & Summaries, including budget data
* Transactions
* Purchasing/Payables
* Vendors
* Project Accounting, if applicable
* Budget Development, if applicable
* Chart of Account tables/lookups
Lam
For the duration of this Agreement, Simpler hereby grants to City a non-exclusive, nontransferable License to use the Simpler Platform to provide data services to users of City's Tyler Eden Financial application. The following sections apply to the framework of the applications and not to the templates developed by or for the City.

Simpler will provide City with the source code to the Simpler Platform. City agrees that the source code and documentation provided by Simpler is confidential and agrees to take all reasonable precautions to protect the source code and documentation, and preserve its confidential, proprietary and trade secret status in perpetuity In lieu of continuous access, periodic copies of the source code will be transferred electronically to City by Simpler whenever requested, but not more frequently than semi-annually. Source code is provided to mitigate risk should Simpler Systems no longer be available to support the application. The client will not modify the source code.
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Simpler for Tyler Eden Licensing & Professional Services 3 g fmmwr
Apart from the License Rights set forth in this Agreement, the License does not include a grant to City to engage in any other licensable activity, nor any ownership right, title or interest, nor any security interest or other interest, in any intellectual property rights relating to the Simpler Platform nor in any copy of Simpler software.

Simpler shall retain all rights, title, and interest, including all copyrights, in and to the Simpler Platform. All rights not specifically transferred by this agreement are reserved to Simpler.

Notwithstanding any provision to the contrary, this License is effective when executed by both parties and the license granted to Simpler for Tyler Eden remains in force until City stops using Simpler or until Simpler terminates this Agreement because of City's failure to comply with any of its terms and conditions.

PRarczvam STivucs
In addition to licensing, Simpler will provide Professional Services. Simpler will:
* InstallandconfiguretheSimplerforTylerEdendatapps
* Provide analysis and recommendations on converted data and conversion processes, if needed * Support and analysis for testing and feedback
@ Provide customization or create new datapps
* Provide training to trainers and/or end users on Simpler datapps and functionality * Provide technical training on the maintenance and creation of new datapps, if requested Maact
City acknowledges that Simpler Platform upgrades, enhancements and bug fixes may be required periodically and that the need for such enhancements or fixes is not indicative of defects in the software or services provided. Any version upgrades, or enhancements or bug fixes incorporated into Simpler Reporting will be provided at no additional charge to the City. Simpler reserves the right to modify or replace the hosted Simpler Platform at any time with a newer version of Simpler Platform in order to incorporate any or all upgrades, enhancements and bug fixes. Simpler is not obligated to provide or incorporate upgrades, enhancements or bug fixes unless failure to do so infringe upon the execution of Simpler's other material obligations within this Agreement.

Na<P
The incident process is initiated by contacting Simpler Systems and reporting an issue. There are three (3) methods available to contact User Support.
a. Feedback icon - From within the application, any user can click on the Feedback icon in the Control Panel. This method supports asking questions, requesting an enhancement, or reporting a bug.
b. Email - Requests for support can be sent via email to Simpler resources assigned to the City, or utilize the company email address for user support, [email protected]. c. Telephone - Users may call Simpler resources assigned to the City directly, or if representatives are unavailable and immediate response is required, call the main line 805.882.1848 during support hours.
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Simpler for Tyler Eden Licensing & Professional Services 4 IV. HOSnN6
The application and databases can be hosted onsite by City or by Simpler. If City hosted, for the term of this Agreement Simpler will have continuous access to the servers hosting the application and databases via City standards for remote access.

If hosted onsite, the City will be solely responsible for maintaining all software products running on servers utilized by the Simpler application and databases. This includes, but is not limited to, operating system software, upgrade patches, anti-virus and security software, and connectivity software to other servers. The City is responsible for regular monitoring for version upgrades and patches and will test and install upgraded software to Simpler application and database servers in a timely manner.

V. imctuupmpam
This is an agreement to provide Licensing for a limited time only, and in no way establishes an obligation upon Simpler Systems to sell the Simpler Platform or any modifications to the application to the City or to make the Simpler Platform available to the City beyond the term of the Agreement.

The application is the property of Simpler Systems and Simpler retains all intellectual property rights to the Simpler Platform, or any modifications thereof, or enhancements created as part of customization services performed on behalf of the City.

Vl. PRODUCFWARRAN'TY
City'S written acceptance Ofthe Simpler Platform pursuant tO thiS Agreement constitutes an unqualified acceptance of the Simpler Platform as is.

Without limiting the generalities Of any exclusion Set forth in thiS Agreement, Cit'y Will be exclusivelV responsible as between the parties for and Simpler expressly makes no warranty or representation with respect to:
* Determining that Simpler for Tyler Eden will achieve the results (such as organizationa( efficiencies) desired by City
@ Ensuring the accuracy of any input data used with Simpler for Tyler Eden * Establishing adequate backup provisions for backing up City's data Vll. PRlaN6
The pricing information in this proposal is confidential and intended only for the use of the City of South Gate.

Changes in scope or requirements may impact pricing.
€mpuawa-magpg
There are three components to the implementation pricing of this Simpler engagement:
1, License - A one-time enterprise licensing fee for unlimited users.

2. ProfessionalServices-TheProfessionalServicespricingisbasedontimeandmaterialsandwillbe invoiced monthly for actual hours worked, estimated for 140 hours at S220 per hour. *iimy&i%l I m *hma 4
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Simpler for Tyler Eden Licensing & Professional Services S

3. The Ongoing License & Maintenance period will commence upon the client's validation of the delivered data, or no later than sixty (60) calendar days after final product delivery-whichever occurs first. This monthly charge includes web user licenses, technical support, version upgrades, and minor enhancements.
uescrtpuon Amount
L?cense
Professional Services iactual hours bi!led month(y§
Morhthfy License & f!'lairxtenance
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Simpler Systems will invoice City periodically but no more frequently than monthly, starting one month after the effective date of this proposal.

Vlll. a)NTACT INFORMA'n €)N
Simpler Systems Vendor Contact:

Pa Box 2303 Ms. Keri Collins
Santa Barbara, CA 93120 keri @simplersystems.com
805-882-1848 805-612-6673
www.simplersystems.com
*jiai.ylea% I - rmsm %geS
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Attachment C
@SimpferSyslems
Sole Source Justification

PRODUCF
The Simpler Systems Platform is used to create datapps for any type of data. The user interface is simple, elegant, and intuitive. No matter what the data disposition is of a given organization, datapps increase data IQ by putting the data in the hands of those that want and need it the most.

Our proprietary datapps run on a web browser and do not require any workstation installation or configuration. Datapps are based on pools of data with which users interact or navigate. Navigate means filtering, sorting, aggregating, and grouping. You can drill down from the summarized data to the detailed pool or quickly aggregate (summarize). Each datapp can produce hundreds, even thousands of "reports," which anyone can run on their own. Quickly, and without assistance from expensive or over allocated resources.

The result is transparent data, with broader, deeper, and faster access to it. This is true for both the professionals managing a software implementation as well as for the users, at any stage of the software lifecycle.

INTENDED USE
Establish a platform that can access data from multiple sources simultaneously, compose the data meaningfully, and present it to the user so that anyone can navigate (filter, sort, aggregate, and group).

The solution must:
* Access and combine multiple data sources
* Use any data file format
* Require no workstation installation or configuration @ Be available across multiple locations
* Provide fast access
* Require minimal user training
Datapps.aie'propiinfary ana,<:an only be created by using the Simpler Platform. The Simpler Platform offers.things.jH'ffit'n6:.0t0aer ve'Hdor can duplicate.

ThWf:tap;S)co-ncept"iffisi.qt,:4.se",':a.0d speed are unique to the Simpler platform. During configuration of ice p3itform, tjie',aata,!.i:a6ffi5!H'ed iris ;ay that is broad and inclusive, and that makes sense to the d6rpp!n exper€ffiJ.'('nce configured,,.$nction;al users of every level can access the data in order to create reports, research, and an.swer qu(,tio0s. F;ist and simple. While other solutions for data access continue to be'complicated, (e.qirire technica( Skms like 5QL and page layout, or take multiple cycles over days to gej:' i.t 'right, dataappsB34:a4he datarn.the hajids of the people that need it most and eliminate the bottlenec,k ofafimited analystres6urces.
in a,d4iti6n, the simpli<-ity ;nd maturibj Of the platform requires insignificant, if any, patching or upgrades, no iristallatipn or f,iles on userworkstations, and minimal training.

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421
@Simpl:erSystems
WHYuNIQUEFEATURff A9FRF41fflffll9Frl
During recent years there has been several factors that impact public sector organizations:

Increased demand for data
(ncreased responsibilities of IT staff
Difficulties in approving new positions
Lack of organizational resources with the skillsets needed The Simpler Platform and datapps allow the organization to create a solution that requires minimal technical support, provides all data required to functional departments, and frees up valuable IT resources to work on other higher-level tasks. While other solutions require multiple dedicated resources to constantly program new reports, Simpler eliminates or reduces IT resources required for this process.

The benefits of this include:
* Higher level of data intelligence in the organization * Reduced need for additional and expensive "report writing" or SQL positions * Minimize the need of technical resources for user support, license tracking, complex workstation installations
* Eliminate expensive and time-consuming training on complex applications * Faster and more efficient processes to respond to internal and external requests for data or information
* Immediate return on investment for the organization FAIR AND REASONABLE ffiaNG
Here are a few ways to determine fair and reasonable pricing for the Simpler Platform. rnWKnTPK'Ju*il!ffikha *iiialmU'flJER$a)uLDNOTNIEffSanDNS, There is no other company that can provide datapps. Providing all of the functionality and benefits of a datapp using anything besides the Simpler Platform would require multiple resources with SkillsetS that are expensive and difficult to acquire in the public sector.

Pap&tUa6?HANORmTq,THOSEQIIOFB)Tl €'ffHfRffMJll Aff
ris unique in many ways, but Simpler makes every effort to look at pricing that is fair and consistent across all organizations. In the templates for general datapps built for other clients using a savings on staffing cost and development time.
ni;r4tion will realize savings or avoid costs when implementing pS can be ready to review and use in a very short timeframe porttng solutions.
21Page
,Q't
422
@iSimplerSyslems

2. Training time - Most users of the datapps can be trained in less than one hour sitting at their desk instead of days or weeks of expensive onsite classroom training, possibly including travel expenses.

3. Creating a report - Standard reports can be created in a few mouse clicks and ad hoc reports in a matter of minutes instead of hours and days of determining requirements and working with analysts or report writers.

4. Report generation speed - Most reports are created in a matter of seconds. You can immediately get results and modify just as quickly.

PHUiv hit N h.tx y
Datapps can only be created using the proprietary Simpler platform. Datapps are dynamic XML templates which are extended by using SimplerScriptTM, an exclusive scripting language. The Simpler Platform and scripting language were developed in order to provide efficient and immediate access to multiple data sources with an intuitive interface designed for the average business user.

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423
Item No. 9
Office of the
South Gate Oity Clerk
qrp 18 2025 Ciffl of South Gate
FILED

CITY COUNCIL
g>3b(Ml

AGENDA BNLL
For the Regular Meeting qf September 23, 2025
Originating Department:
nepartmentnirector: h
fa rt< Darren Arakawa
Ciffl Manager:

Rob Houston
SUBJECT: AGREEMENT WITH ALL CITY MANAGEMENT SERVICES, INC., FOR

CROSSING GUARD SERVICES
PURPOSE: To enter into an agreement with All City Management Services, Inc., for Crossing Guard Services to continue to provide for the safety of students, parents, and staff as they walk to and from school, and to ensure that designated intersections are controlled and monitored during peak periods of pedestrian presence.

RECOMMENDED ACTION: The City Council will consider:
a. Approving an Agreement with All City Management Services, Inc. ("ACMS"), for crossing guard services for a one (1) year ternn, effective July 1, 2025 - June 30, 2026; and b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.

FISCAL IMPACT: ACMS has increased rates commensurate with the cost of living and rising operational costs. These price increases are reflected in an increase from $33.94 per hour in fiscal year 2024-2025 to $34.80 per hour in fiscal year 2025-26. Funds of $712,332.72 were budgeted from the Crossing Guard Program for crossing guard services during the FY2024-2025 budget process. However, the total annual projected costs of services for this service contract, FY2025-26, are $730,382.40, an increase of $18,049.68. The increased costs are reflected in the hourly rate increase.

BACKGROUND: Since August of 1994, the City has contracted with All City Management Services, Inc., to provide crossing guard services throughout the City. The decision to contract this operation was based on cost savings and increased operational services. The responsibility of adequately staffing school crossing locations, if a crossing guard was unable to fill his/her shift, was that of the Police Department and a sworn police officer would o'ften be pulled off the streets to provide coverage. Use of this third party transfers staffing responsibility and, as such, the department has been very satisfied with the services provided by ACMS,
Although the South Gate Police Department has been satisfied with the service provided by ACMS, the opportunity to evaluate similar services and pricing from another contractor was recently explored. Staff conducted research and found that ACMS is essentially the only vendor in the area that can provide services on the scale required by the City of South Gate. ACMS has provided the City with outstanding service for over 20 years, as well as, being immensely responsive to the City's needs and requests.

ATTACHMENTS: A. Proposed Agreement with Exhibit A
B. Pricing Letter from ACMS for FY 2025-26
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Contract No.

AGREEMENT FOR PROFESSIONAL SERVICES FOR CROSSING

GUARD SERVICES BETWEEN THE CITY OF SOUTH GATE AND ALL CITY MANAGEMENT SERVICES, INC.

This Agreement for Professional Services for Crossing Guard Services ("Agreement") is made and entered into on July 1, 2025, by and between the City of South Gate, a municipal corporation ("City"), and All City Management Services, Inc., a California corporation ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."

RECITALS
WHEREAS, City desires to retain a qualified provider for certain services relating to crossing guard services; and
WHEREAS, Consultant warrants to City that it has the requisite skills, knowledge, qualifications, manpower and expertise to perform properly and timely the Professional Services under this Agreement; and
WHEREAS, based on such representation, City desires to contract with Consultant to perfornn the services as described in the Scope of Services attached hereto as Exhibit "A" of this Agreement.

Now, THEREFORE, the Parties hereby agree as follows:

1. SCOPE OF SERVICES. City hereby engages Consultant, and Consultant accepts such engagement, to perform the services set forth in the Scope of Services as described in Exhibit "A" attached hereto and made part of this Agreement. The Scope of Services may be mutually amended from time to time by both Parties in In the event of a conflict between Exhibit "A" and this Agreement, the terms of this Agreement shall prevail.

2. COMPENSATION FOR SERVICES. The total amount of compensation for this Agreement shall not exceed the sum of Seven Hundred Thirty Thousand, Three Hundred and Eight-Two Dollars and Forty Cents ($730,382.40) as described in Consultant's proposal attached hereto as Exhibit "A." City shall pay Consultant for its professional services rendered and costs incurred pursuant to this Agreement. No 1 425
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additional compensation shall be paid for any other expenses incurred, first approved in writing by the Chief of Police or his/her designee.

2.1 Consultant shall be required to attend meetings at City Hall as necessary in the delivery of the projects. Travel time between the Consultant's office and City Hall shall not be billable. Consultant may request an exemption on a case-by-case basis, which shall be subject to City approval.

2.2 Consultant shall be paid in accordance with the schedule included in Consultant's proposal attached hereto as Exhibit "A." City shall pay Consultant within thirty (30) days of receipt of the invoice.

2.3 No payment made hereunder by City to Consultant, other than the final payment, shall be construed as an acceptance by City of any work or materials, nor as evidence of satisfactory performance by Consultant of its obligations under this Agreement.

3. TERMOFAGREEMENT.ThisAgreementiseffectiveasofJulyl,2025,andwill remain in effect for a period of one-year, through and including June 30, 2026, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.

4. CITYAGENT.TheChiefofPolice("Director"),orhis/herdesignee,forthepurposes of this Agreement, is the agent for City. Whenever approval or authorization is required, Consultant understands that the Director, or his/her designee, has the authority to provide that approval or authorization.

5. CONFLICT OF INTEREST. Consultant represents that it presently has no interest and shall not acquire any interest, direct or indirect, in any real property located in the City which may be affected by the services to be performed by Consultant under this Agreement. Consultant fiirther represents that in performance of this Agreement, no person having any such interest shall be employed by it. Within ten (10) days, Consultant agrees that it will immediately notify City of any other conflict of interest that may exist or develop during the temi of this Agreement.

5.1 Consultant represents that no City employee or official has a material financial interest in Consultant's business. During the ternn of this Agreement and/or as a result of being awarded this confract, Consultant shall not offer, 2 3
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encourage, or accept any financial interest in Consultant's business or in this Agreement by any City employee or official.

6. GENERAL TERMS AND CONDITIONS.

6.1 Termination for Convenience, City may terminate this Agreement at any time without cause by giving thirty (30) days written notice to Consultant of such teriuination and specifying the effective date thereof. In that event, all finished or unfinished documents and other materials shall, at the option of City, become its property. If thisAgreement is terminated by City as provided herein, Consultant will be paid the total amount of its costs as of the termination date. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Agreement.

6.2 Termination for Cause.

6.2.I City may, by written notice to Consultant, terminate the whole or any part of this Agreement in any of the following circumstances:
a. If Consultant fails to perfori'n the services required by this Agreement within the time specified herein or any authorized extension thereof; or
b. If Consultant fails to perfom the services called for by this Agreement or so fails to make progress as to endanger performance of this Agreement in accordance with its terms, and in either of these circumstances does not correct such failure withing a period of ten (10) days (or such longer period as City may authorize in writing) after receipt of notice from City specifying such failure.

6.2.2 In the event City terminates this Agreement in whole or in part as provided above in Subsection 6.2. 1, City may procure, upon such terms and in such manner as it may deem appropriate, services similar to those terminated.

6.2.3 IfthisAgreementisterminatedasprovidedaboveinSubsection6.2.1, City may require Consultant to provide all finished or unfinished documents, data, studies, drawings, maps, photographs, reports, films, charts, sketches, computations, surveys, models, or other similar 3 427
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documentation prepared by Consultant. Upon such terinination, Consultant shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work perfon'ned up to the date of termination, consideration shall be given to both completed work andwork in progress, to complete and incomplete drawings, and to other documents whether delivered to City or in possession of Consultant, and to authorized reimbursement expenses.

6.2.4 If, after notice of ten'nination of the Agreement under the provisions of Subsection 6.2.1 above, it is determined, for any reason, that Consultant was not in default, or that the default was excusable, then the rights and obligations oftheParties shall bethe same as ifthe notice oftermination had been issued pursuant to Subsection 6. 1. above.

6.3 Non-Assignability.Consultantshallnotassignortransferanyinterestinthis Agreement without the express prior consent of City.

6.4 Non-Discrimination.
6,4.1 Consultant shall not discrii'ninate against any employee, subcontractor, or applicant for employment because of to race, creed, gender, gender identity (including gender expression), color, religion, ancestg, sexual orientation, national origin, disability, age, marital status, family/parental status, or veteran/military status, in the perfornnance of its services and duties pursuant to this Agreement and will comply with all applicable laws, ordinances and codes of the Federal, State, and County and the City governments. Consultant will take affiri'native action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, disability, or age. Consultant will take affirmative action to ensure that all employment practices, including those of any subcontractors retained by Consultant to perform services under this Agreement, are free from such discrimination. Such employment practices include, but are limited to: hiring, upgrading, demotion, transfer, recruitment, recruitment advertising, layoff, teri'nination, rates of pay or other fori'ns of compensation, and selection for training, including apprenticeship. 4 5
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South Gate City CouncilSeptember 23, 2025

South Gate City Council
September 23, 2025