RESOLUTION NO. 2025-038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND AUTHORIZING THE EXECUTION OF A SIDE LETTER
OF AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND THE
TEAMSTERS LOCAL UNION 986
SECTION 1. Recitals.
A. The Teamsters Local Union 986 (Teamsters) has been recognized as an employee organization pursuant to Resolution No. 4027.
B. On September 2, 2025, the City Council of the City of Vernon adopted Resolution No. 2025-024 approving a Memorandum of Understanding setting forth certain terms and conditions for employment of the City of Vernon employees in classifications represented by Teamsters, for the period of July 1, 2025 through June 30, 2028.
C. Representative members of Teamsters and the City have agreed to execute a Side Letter of Agreement, effective December 8, 2025, updating provisions regarding excess leave accrual pay-out procedures.
D. All other terms of the existing Teamsters MOU would remain in effect.
E. The City Council desires to approve the Side Letter of Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon hereby approves and authorizes the execution of the Side Letter of Agreement (Agreement) between the City of Vernon and the Teamsters Local Union 986, in substantially the same form attached hereto as Exhibit A.
SECTION 4. The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever action is deemed necessary or desirable for the purpose of implementing and carrying out the actions of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Side Letter Agreement attached herein.
SECTION 5. The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk’s designee, to send a fully executed Agreement to Michael Grijalva, Business Representative of Teamsters Local Union 986.
Resolution No. 2025-038
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SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable.
SECTION 7. The City Clerk, or Deputy City Clerk, shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED December 16, 2025.
________________________
LETICIA LOPEZ, Mayor
ATTEST:
GENOVEVA ROCHA, City Clerk
APPROVED AS TO FORM:
ZAYNAH MOUSSA-MILWARD,
City Attorney
Resolution No. 2025-038
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF VERNON )
I do hereby certify that the attached is a true copy of Resolution No. 2025-038 that was passed and adopted at the Regular Meeting held on December 16, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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GENOVEVA ROCHA, City Clerk
SIDE LETTER OF AGREEMENT
BETWEEN
THE CITY OF VERNON
AND THE
TEAMSTERS LOCAL 986
This Side Letter of Agreement (“Agreement”) between the City of Vernon (“City”) and Teamsters Local 986 (“Union”) (collectively “Parties”) is entered into to modify the following sections of Union MOU dated July 1, 2025, through June 30, 2028:
ARTICLE TEN – VACATION
Effective December 8, 2025, Article Ten (Vacation), Section 2(A), shall be modified to read as follows:
A. Accumulation and carry-over of vacation leave shall be limited to a maximum of the number of hours the employee was eligible to accrue during the immediately preceding year. In December of each year, employees shall be compensated for unused accrued vacation benefit in excess of the allowed accumulated amount referenced above. For 2025, excess vacation leave pay out will be processed from January 1, 2025, through the end of the 25th biweekly pay period, which lands on November 29th. The excess vacation leave cashouts will be calculated with leave balances and regular rate of pay as of November 29, 2025. Employees will have an alternative, one-time option for 2025 only, to elect to defer their pay out to February 2026. This will be a deferred pay out, with same stipulated pay provisions.
Effective in 2026 and going forward, the excess vacation leave pay outs will be for the period of the 26th biweekly pay period of each year through the end of the 25th biweekly pay period of the following year. The specific dates will vary from year to year. Employees may elect to take pay out monies as cash or as contribution to the employee’s 457 deferred compensation account subject to the rules of the applicable plan.
Exhibit A
Resolution No. 2025-038
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ARTICLE ELEVEN – SICK LEAVE
Effective December 8, 2025, Article Eleven (Sick Leave), Section 1(C), shall be modified to read as follows:
C. Employees will continue to accrue sick leave hours at the 80 hours per year rate, and any sick leave hours exceeding 960 will be compensated in December of each year at 50% of the employee’s regular rate of pay as of November 29, 2025. For 2025, excess sick leave pay out will be processed from January 1, 2025, through the end of the 25th biweekly pay period, which lands on November 29th.
The excess sick leave cashouts will be calculated with leave balances and regular rate of pay as of November 29, 2025. Employees will have an alternative, onetime option for 2025 only, to elect to defer their pay out to February 2026. This will be a deferred pay out, with same stipulated pay provisions.
Effective in 2026 and going forward, the excess sick leave pay outs will be for the period of the 26th biweekly pay period of each year through the end of the 25th biweekly pay period of the following year. The specific dates will vary from year to year. Employees may elect to take pay-out monies as cash or as contribution to the employee’s 457 deferred compensation account subject to the rules of the applicable plan.
FOR THE CITY OF VERNON
_____________________________ _________________________ Brian Saeki, City Administrator Date
FOR TEAMSTERS, LOCAL 986
_____________________________ _________________________ Michael Grijalva, Business Representative Date
Resolution No. 2025-038
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