Agenda packet — Yorba Linda City Council, August 6, 2024 (part 2 of 3)

INTEREST
05/03/24 TEXAS INSTRUMENTS INC CORP NOTES
(CALLAB
DTD 11/03/2017 2.900% 11/03/2027
05/03/24 882508BC7 255,000.00 0.00 3,697.50 3,697.50
05/04/24 AMERICAN EXPRESS CO (CALLABLE)

CORPORATE
DTD 11/04/2021 1.650% 11/04/2026
05/04/24 025816CM9 245,000.00 0.00 2,021.25 2,021.25
05/10/24 NORTHERN TRUST CORP NOTE
(CALLABLE)
DTD 05/10/2022 4.000% 05/10/2027
05/10/24 665859AW4 140,000.00 0.00 2,800.00 2,800.00
05/15/24 DCENT 2022-A2 A
DTD 05/26/2022 3.320% 05/17/2027
05/15/24 254683CS2 170,000.00 0.00 470.33 470.33
05/15/24 CARMX 2021-3 A3
DTD 07/28/2021 0.550% 06/15/2026
05/15/24 14317DAC4 129,294.22 0.00 59.26 59.26
05/15/24 HART 2021-A A3
DTD 04/28/2021 0.380% 09/15/2025
05/15/24 44933LAC7 11,989.87 0.00 3.80 3.80
05/15/24 IBM CORP CORP NOTES (CALLABLE)
DTD 05/07/2020 1.700% 05/15/2027
05/15/24 459200KH3 125,000.00 0.00 1,062.50 1,062.50
05/15/24 US TREASURY NOTES
DTD 05/15/2018 2.875% 05/15/2028
05/15/24 9128284N7 725,000.00 0.00 10,421.88 10,421.88
05/15/24 UNIV OF CAL TXBL REV BONDS
DTD 07/16/2020 0.933% 05/15/2025
05/15/24 91412HFM0 130,000.00 0.00 606.45 606.45
05/15/24 CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026
05/15/24 14314QAC8 38,827.74 0.00 16.83 16.83
05/15/24 KCOT 2021-2A A3
DTD 07/28/2021 0.560% 11/17/2025
05/15/24 50117XAE2 43,519.54 0.00 20.31 20.31
05/15/24 COPAR 2022-2 A3
DTD 08/10/2022 3.660% 05/17/2027
05/15/24 14043GAD6 150,000.00 0.00 457.50 457.50
05/15/24 AMXCA 2022-2 A
DTD 05/24/2022 3.390% 05/17/2027
05/15/24 02582JJT8 365,000.00 0.00 1,031.13 1,031.13
05/15/24 CARMX 2022-3 A3
DTD 07/20/2022 3.970% 04/15/2027
05/15/24 14318MAD1 330,000.00 0.00 1,091.75 1,091.75
05/15/24 US TREASURY NOTES
DTD 11/15/2022 4.500% 11/15/2025
05/15/24 91282CFW6 500,000.00 0.00 11,250.00 11,250.00
Account 97480000 Page 33

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INTEREST
05/15/24 CARMX 2021-1 A3
DTD 01/27/2021 0.340% 12/15/2025
05/15/24 14316NAC3 10,463.73 0.00 2.96 2.96
05/15/24 CARMX 2020-4 A3
DTD 10/21/2020 0.500% 08/15/2025
05/15/24 14316HAC6 5,489.76 0.00 2.29 2.29
05/15/24 US TREASURY NOTES
DTD 05/16/2016 1.625% 05/15/2026
05/15/24 912828R36 500,000.00 0.00 4,062.50 4,062.50
05/15/24 US TREASURY NOTES
DTD 05/15/2017 2.375% 05/15/2027
05/15/24 912828X88 600,000.00 0.00 7,125.00 7,125.00
05/15/24 UNITEDHEALTH GROUP INC CORP

NOTES (CALLA
DTD 05/20/2022 3.700% 05/15/2027
05/15/24 91324PEG3 50,000.00 0.00 925.00 925.00
05/15/24 KCOT 2021-1A A3
DTD 04/14/2021 0.620% 08/15/2025
05/15/24 50117TAC5 29,340.65 0.00 15.16 15.16
05/18/24 HAROT 2022-2 A3
DTD 08/24/2022 3.730% 07/20/2026
05/18/24 43815PAC3 75,000.00 0.00 233.13 233.13
05/19/24 PNC FINANCIAL SERVICES CORP NOTES
(CALLA
DTD 05/19/2017 3.150% 05/19/2027
05/19/24 693475AT2 120,000.00 0.00 1,890.00 1,890.00
05/20/24 TOYOTA MOTOR CREDIT CORP

CORPORATE NOTES
DTD 11/20/2023 5.400% 11/20/2026
05/20/24 89236TLD5 270,000.00 0.00 7,290.00 7,290.00
05/28/24 ASTRAZENECA FINANCE LLC
(CALLABLE) CORP
DTD 05/28/2021 1.200% 05/28/2026
05/28/24 04636NAA1 145,000.00 0.00 870.00 870.00
05/31/24 US TREASURY NOTES
DTD 11/30/2021 1.250% 11/30/2026
05/31/24 91282CDK4 125,000.00 0.00 781.25 781.25
05/31/24 US TREASURY NOTES
DTD 05/31/2023 3.625% 05/31/2028
05/31/24 91282CHE4 750,000.00 0.00 13,593.75 13,593.75
05/31/24 US TREASURY NOTES
DTD 11/30/2020 0.375% 11/30/2025
05/31/24 91282CAZ4 225,000.00 0.00 421.88 421.88
05/31/24 US TREASURY NOTES
DTD 05/31/2021 0.750% 05/31/2026
05/31/24 91282CCF6 500,000.00 0.00 1,875.00 1,875.00
05/31/24 US TREASURY NOTES
DTD 11/30/2022 3.875% 11/30/2027
05/31/24 91282CFZ9 420,000.00 0.00 8,137.50 8,137.50
Account 97480000 Page 34

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INTEREST
05/31/24 US TREASURY NOTES
DTD 11/30/2021 1.500% 11/30/2028
05/31/24 91282CDL2 765,000.00 0.00 5,737.50 5,737.50
05/31/24 US TREASURY NOTES
DTD 05/31/2020 0.500% 05/31/2027
05/31/24 912828ZS2 1,200,000.00 0.00 3,000.00 3,000.00
Transaction Type Sub-Total 16,621,743.79 0.00 120,673.98 120,673.98

MATURITY
05/01/24 CITIGROUP INC CORPORATE NOTES
(CALLED,OM
DTD 05/04/2021 0.981% 05/01/2024
05/01/24 172967MX6 60,000.00 60,000.00 294.30 60,294.30 (118.20) 0.00 05/01/24 CITIGROUP INC CORPORATE NOTES
(CALLED,OM
DTD 05/04/2021 0.981% 05/01/2024
05/01/24 172967MX6 60,000.00 60,000.00 294.30 60,294.30 0.00 0.00 05/01/24 SAN DEIGO CNTY WTR AUTH, CA TXBL

REV BON
DTD 07/22/2020 0.593% 05/01/2024
05/01/24 797412EL3 75,000.00 75,000.00 222.38 75,222.38 0.00 0.00 05/01/24 SAN DEIGO CNTY WTR AUTH, CA TXBL

REV BON
DTD 07/22/2020 0.593% 05/01/2024
05/01/24 797412EK5 150,000.00 150,000.00 444.75 150,444.75 0.00 0.00 Transaction Type Sub-Total 345,000.00 345,000.00 1,255.73 346,255.73 (118.20) 0.00

PAYDOWNS
05/25/24 FHMS K061 A2
DTD 01/30/2017 3.347% 11/01/2026
05/01/24 3137BTUM1 706.48 706.48 0.00 706.48 21.75 0.00 05/25/24 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
05/01/24 3137HAD45 242.54 242.54 0.00 242.54 0.01 0.00
05/25/24 FHMS KJ48 A1
DTD 12/01/2023 4.858% 05/01/2028
05/01/24 3137HBC69 588.87 588.87 0.00 588.87 0.00 0.00
05/15/24 HART 2021-A A3
DTD 04/28/2021 0.380% 09/15/2025
05/15/24 44933LAC7 4,315.50 4,315.50 0.00 4,315.50 0.46 0.00 05/15/24 CARMX 2021-1 A3
DTD 01/27/2021 0.340% 12/15/2025
05/15/24 14316NAC3 2,281.56 2,281.56 0.00 2,281.56 0.45 0.00 Account 97480000 Page 35

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PAYDOWNS
05/15/24 KCOT 2021-1A A3
DTD 04/14/2021 0.620% 08/15/2025
05/15/24 50117TAC5 5,977.22 5,977.22 0.00 5,977.22 1.22 0.00 05/15/24 CARMX 2022-3 A3
DTD 07/20/2022 3.970% 04/15/2027
05/15/24 14318MAD1 8,504.87 8,504.87 0.00 8,504.87 0.20 0.00 05/15/24 CARMX 2021-3 A3
DTD 07/28/2021 0.550% 06/15/2026
05/15/24 14317DAC4 11,395.90 11,395.90 0.00 11,395.90 1.87 0.00 05/15/24 KCOT 2021-2A A3
DTD 07/28/2021 0.560% 11/17/2025
05/15/24 50117XAE2 5,262.22 5,262.22 0.00 5,262.22 0.20 0.00 05/15/24 CARMX 2020-4 A3
DTD 10/21/2020 0.500% 08/15/2025
05/15/24 14316HAC6 5,489.76 5,489.76 0.00 5,489.76 1.21 0.00 05/15/24 CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026
05/15/24 14314QAC8 5,957.44 5,957.44 0.00 5,957.44 1.28 0.00 05/18/24 HAROT 2022-2 A3
DTD 08/24/2022 3.730% 07/20/2026
05/18/24 43815PAC3 3,024.29 3,024.29 0.00 3,024.29 0.18 0.00 Transaction Type Sub-Total 53,746.65 53,746.65 0.00 53,746.65 28.83 0.00 SELL
05/03/24 CATERPILLAR FINL SERVICE

CORPORATE NOTES
DTD 01/08/2024 4.500% 01/08/2027
04/30/24 14913UAE0 95,000.00 93,470.50 1,365.63 94,836.13 (1,426.90) (1,437.15) FIFO 05/03/24 TARGET CORP CORP NOTES
(CALLABLE)
DTD 01/24/2022 1.950% 01/15/2027
04/30/24 87612EBM7 65,000.00 59,997.60 380.25 60,377.85 (4,891.90) (4,942.38) FIFO 05/03/24 TARGET CORP CORP NOTES
(CALLABLE)
DTD 01/24/2022 1.950% 01/15/2027
04/30/24 87612EBM7 120,000.00 110,764.80 702.00 111,466.80 (9,320.40) (9,280.81) FIFO 05/03/24 IBM CORP
DTD 05/15/2019 3.300% 05/15/2026
04/30/24 459200JZ5 225,000.00 216,216.00 3,465.00 219,681.00 (31,981.50) (18,580.55) FIFO 05/16/24 TOYOTA MOTOR CREDIT CORP

CORPORATE NOTES
DTD 01/05/2024 4.650% 01/05/2029
05/13/24 89236TLL7 80,000.00 78,813.60 1,353.67 80,167.27 (1,076.80) (1,083.92) FIFO 05/20/24 GOLDMAN SACHS GROUP INC CORP

NOTES (CALL
DTD 02/12/2021 0.855% 02/12/2026
05/16/24 38141GXS8 150,000.00 144,724.50 349.13 145,073.63 (5,628.00) (5,340.38) FIFO Account 97480000 Page 36

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Managed Account Security Transactions & Interest For the Month Ending May 31, 2024 CITY OF YORBA LINDA - 97480000
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
SELL
05/20/24 HOME DEPOT INC CORP NOTES
(CALLABLE)
DTD 03/30/2020 2.500% 04/15/2027
05/16/24 437076CA8 120,000.00 112,480.80 291.67 112,772.47 (2,798.40) (4,649.91) FIFO 05/23/24 PNC FINANCIAL SERVICES CORP NOTES
(CALLA
DTD 05/19/2017 3.150% 05/19/2027
05/21/24 693475AT2 120,000.00 113,737.20 42.00 113,779.20 (3,318.00) (4,425.88) FIFO 05/23/24 NORTHERN TRUST CORP NOTE
(CALLABLE)
DTD 05/10/2022 4.000% 05/10/2027
05/21/24 665859AW4 140,000.00 136,493.00 202.22 136,695.22 (4,447.80) (4,058.68) FIFO 05/30/24 MORGAN STANLEY CORP NOTES
(CALLABLE)
DTD 10/19/2021 1.164% 10/21/2025
05/29/24 61747YEG6 120,000.00 117,746.40 151.32 117,897.72 (2,253.60) (2,253.60) FIFO 05/30/24 TEXAS INSTRUMENTS INC CORP NOTES
(CALLAB
DTD 11/03/2017 2.900% 11/03/2027
05/29/24 882508BC7 140,000.00 131,048.40 304.50 131,352.90 (1,533.00) (2,216.22) FIFO Transaction Type Sub-Total 1,375,000.00 1,315,492.80 8,607.39 1,324,100.19 (68,676.30) (58,269.48) Managed Account Sub-Total (481,412.66) 122,557.18 (358,855.48) (68,765.67) (58,269.48) Total Security Transactions ($481,412.66) $122,557.18 ($358,855.48) ($68,765.67) ($58,269.48) Account 97480000 Page 37

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PUBLIC WORKS DEPARTMENT
DATE: AUGUST 6, 2024
TO: HONORABLE MAYOR AND MEMBER OF THE CITY COUNCIL
FROM: JAMIE LAI, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: ARMANDO JAIME, PUBLIC WORKS SUPERINTENDENT SUBJECT: AWARD OF CONTRACT FOR ASPHALT PAVEMENT MAINTENANCE AND REPAIR SERVICES TO HAITBRINK ASPHALT PAVING, INC.

RECOMMENDATION
It is recommended that City Council:

1. Award a three-year contract for Asphalt Pavement Maintenance and Repair Services to Haitbrink Asphalt Paving, Inc. in the amount not-to-exceed $837,150.00 ($279,050.00 annually) and reject all other bids; and

2. Authorize a supplemental budget appropriation in an amount of $99,050.00 from the Gas Tax Fund (211) with a corresponding budget increase to Project No.

SI251002 (Account Number 4010050-461620) for a revised project budget of $279,050.00; and

3. Authorize expenditures for contract contingencies and potential additional services or unanticipated work performance that may arise, in an amount of $125,572.50 (15% of the contract amount) for the three-year term, $41,857.50 per Fiscal Year; and

4. Authorize the City Manager on behalf of Council to execute the proposed contract and potential future amendment or change orders within the designated contingency amount and approve contract renewals including any unit price increase(s) as provided within this agreement on behalf of the Council.

BACKGROUND
Street maintenance repairs, such as localized pavement replacements, have historically been performed by a qualified asphalt contractor that has secured the City’s asphalt pavement maintenance and repairs services contract through the City’s formal bidding procedures. Therefore, with the current asphalt contract due to expire on August 6, 2024, staff developed and advertised a bidding package in order to secure a qualified asphalt repair contractor.

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A W A R D O F C O N T R A C T F O R A S P H A L T P A V E M E N T M A I N T E N A N C E A N D R E P A I R S E R V I C E S T O H A I T B R I N K A S P H A L T P A V I N G , I N C .

P a g e | 2
The proposed asphalt pavement maintenance contract includes an initial three-year term and can be extended once for two-years, at the sole discretion of the City. This approach offers the successful vendor a potentially longer-term contract that allows the vendor to purchase equipment with less risk and develop a crew structure that can be stable and increases the attractiveness of the contract.

Consequently, in June of 2024, staff solicited bids for Asphalt Pavement Maintenance and Repairs Services Agreement through the City’s formal bidding process. The scope of work for this proposed contract agreement includes removal and replacement of deteriorated sections of asphalt pavement, skin patching, slurry, aggregate base and the adjustment of utility manhole and covers.

DISCUSSION
Three (3) bids were received, and the bids were opened on July 9, 2024, with the following results:

Contractor City Bid Amount
Haitbrink Asphalt Paving, Inc. Corona, Ca $ 279,050.00
Hardy & Harper, Inc. Lake Forest, Ca. $ 503,970.00
GM Sager Construction Co., Inc. Pomona, Ca. $ 635,550.00 The bid opening resulted in higher unit prices due to the higher costs associated with labor, fuel, insurance and materials. With that being said, only work quantities performed by the contractor will be compensated for by the City. Staff examined the bids received and determined that the lowest responsible and responsive bidder is Haitbrink Asphalt Paving, Inc. Haitbrink Asphalt Paving, Inc. has performed these services for the City in the past.

FISCAL IMPACT
With the budget adjustment request, sufficient funding necessary to accommodate the proposed contract award has been programmed within the Capital Improvement Program budget within Project No. SI251002 (Account No. 4010050-461620) for Fiscal Year 2024- 2025. Since the second and third contract years fall beyond the current budget cycle, budget increases for future years will be required for the 2-Year and 7-Year CIP program budgets.

Staff will request these increases as a part of the forthcoming two-year budget process.

Additionally, any potential contingencies utilized by City Manager approval and contract change order will be funded out of the associated Public Works Construction operating account (1010330-432500).

ALTERNATIVES
The City Council may choose not to award the proposed asphalt pavement maintenance and repair services contract and reject all bids. But staff does not recommend this alternative because it will require the bidding process to restart and a month-to-month for the asphalt pavement maintenance and repair services agreement with the current or another vendor until the new procurement process for these services is completed. The bid received from

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A W A R D O F C O N T R A C T F O R A S P H A L T P A V E M E N T M A I N T E N A N C E A N D R E P A I R S E R V I C E S T O H A I T B R I N K A S P H A L T P A V I N G , I N C .

P a g e | 3
Haitbrink Asphalt Paving, Inc. is competitive and there is no guarantee that re-advertising for these services will result in a lower bid.

ATTACHMENTS
Attachment 1- Haitbrink Asphalt Paving, Inc. Bid Proposal Attachment 2- Haitbrink Asphalt Pavement, Inc. Agreement

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Contract
Services
Agreement

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2905/009410-1001
19412635.3 a07/16/24
Contract Services Agreement | 1

CONTRACT SERVICES AGREEMENT

APHALT PAVEMENT MAINTENCNE AND REPAIR SERVICES
THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this 6
TH day of August, 2024 by and between the CITY OF YORBA LINDA, a California municipal corporation, (“City”) and «Haitbrink Aphalt Paving, Inc. , a corporation (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.

City sought, by issuance of a Request for Proposals or Invitation for Bids, for the performance of the services defined and described particularly in this Agreement.

Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in this Agreement, was selected by City to perform those services. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.

SECTION 1. SERVICES.

1.1 Scope of Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A, “Scope of Services” and incorporated herein by this reference (the “Services”). Contractor will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. The Scope of Services incorporates Contractor’s scope of work or bid for the Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.

1.2 Term of Services. The term of this Agreement shall begin on August 6, 2024 to June 30, 2027. The City Shall have the unilateral option, at its sole discretion, to renew this agreement for no more than one (1) additional two-year term, unless earlier terminated in accordance with Section 8 of this Agreement, this Agreement shall continue in full force and effect until final written approval and acceptance of the work performed under this Agreement by the Contract Administrator. The time provided to Contractor to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8.

1.3 Standard of Performance.
a. Quality of Work. As a material inducement to City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the

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Contract Services Agreement | 2
Services contemplated herein. Contractor shall at all times faithfully, competently, and to the best of its ability, experience, and talent, perform all Services described herein.

Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances, and to the sole satisfaction of the Contract Administrator.
b. Care of Work. Contractor shall adopt reasonable methods during the term of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.
c. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to:
(A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. d. Warranty. Contractor warrants all work under this Agreement (which for purposes of this Subsection 1.3 shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship.

Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1)

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2905/009410-1001
19412635.3 a07/16/24
Contract Services Agreement | 3
year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense.

Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand.
e. Skilled and Trained Workforce. Contractor, for itself and its subcontractors at every tier, hereby provides an enforceable commitment to comply with California Public Contract Code section 2600 et seq., which requires use of a skilled and trained workforce to perform all work on the agreements that fall within an apprenticeable occupation in the building and construction trades.
f. Inspection and Final Acceptance. The Services shall be performed to the satisfaction of City. City may inspect and accept or reject any of Contractor’s work under this Agreement, during performance and/or when completed. City shall reject or finally accept Contractor’s work within forty five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 4 and Section 5, pertaining to insurance and indemnification, respectively.

1.4 Assignment of Personnel. Contractor shall assign only competent personnel to perform the Services. Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Contractor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

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Contract Services Agreement | 4

1.5 Time. Time is of the essence in the performance of this Agreement.

Contractor shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Contractor’s obligations hereunder. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Scope of Services. When requested by Contractor, extensions to the time period(s) specified in the Scope of Services may be approved in writing by the Contract Administrator but not shall not exceed one hundred eighty (180) days cumulatively.

1.6 Force Majeure. The time period(s) specified in the Scope of Services for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Administrator in writing of the causes of the delay. The Contract Administrator shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the sole judgment of the Contract Administrator such delay is justified. The Contract Administrator’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.

1.7 Suspension of Services. The City Engineer of City (“Engineer”) shall have the authority to suspend the Services, wholly or in part, for such period as the Engineer may deem necessary, due to unsuitable weather or to such other conditions as are considered unfavorable for the suitable prosecution of the Services, or for such time as the Engineer may deem necessary due to the failure on the part of Contractor to carry out orders given or to perform any provisions of the Services. Contractor shall immediately comply with the written order of the Engineer to suspend the Services wholly or in part and shall not resume the Services until ordered to do so in writing by the Engineer. Such suspension shall be without liability to Contractor on the part of City. In the event a suspension of work is ordered because of failure on the part of Contractor to carry out orders given or to perform any provisions of the Services, such suspension of the Services shall not relieve Contractor of responsibility to complete the Services within the time limit set forth herein and shall not be considered cause for extension of the time for completion and, further, such suspension of the Services shall not entitle Contractor to any additional compensation.

1.8 Familiarity with Work and Worksite. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Services, (ii) has carefully considered how the Services should be performed, and (iii)

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fully understands the facilities, difficulties, and restrictions attending performance of the Services. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder. Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Administrator.

1.9 Further Responsibilities of the Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless otherwise specified in this Agreement, neither Party shall be responsible for the service of the other.

SECTION 2. COMPENSATION.

2.1 Contract Amount. City hereby agrees to pay Contractor a sum not to exceed EIGHT HUNDRED THIRTY-SEVEN THOUSAND ONE HUNDRED FIFTY AND NO CENTS ($837,150.00) notwithstanding any contrary indications that may be contained in Contractor’s proposal or bid, for the Services to be performed and reimbursable costs incurred under this Agreement. This compensation may be administratively adjusted pursuant to Section 8.4 herein. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Contractor for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified in this Section 2 shall be the only payments from City to Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.

2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Contractor’s rates as specified in the Scope of Services, provided that time estimates are provided for the performance of subtasks, or (iv) such other methods as may be specified in the Scope of Services. In no event shall compensation exceed the amount set forth in Subsection 2.1.

2.3 Invoices. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Subcontractor charges shall also be detailed by such categories. Invoices shall contain:

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a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense;
e. The total number of hours of work performed under this Agreement by Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed;
g. The Principals’ signatures.

Invoices shall be submitted to:

City of Yorba Linda
Attn: Accounts Payable
4845 Casa Loma Ave
Yorba Linda, CA 92886

2.4 City Payment of Invoices. City shall independently review each invoice submitted by Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission.

Pursuant to California Public Contract Code Section 20104.50, Contractor is notified that for public works Services, City’s failure to pay undisputed and properly submitted invoices within thirty (30) days shall be subject to interest at the legal rate set forth in Code of Civil Procedure Section 685.010. Any invoice for public works Services determined not to be a proper invoice suitable for payment shall be returned to the Contractor as soon as practicable, but not later than seven (7) days, after receipt. An invoice returned pursuant to the foregoing shall be accompanied by a writing stating the reasons why the invoice is not proper.

2.5 Retention of Funds, Final Payment.

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a. Contractor hereby authorizes City, in the sole discretion of the Contract Administrator, to retain and deduct from any amount payable to Contractor not exceeding five percent (5%) of the total compensation The retained funds shall be paid to Contractor within sixty (60) days after final acceptance of the Services by the City and after Contractor has furnished City with full release of all undisputed payments under this Agreement. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds of up to one hundred fifty percent (150%) of the amount in dispute. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as provided in this Agreement. b. Notwithstanding Paragraph a, California Public Contract Code Section 22300 permits the substitution of securities for any retention monies withheld by City for public works Services. At the request and expense of Contractor, securities equivalent to the monies withheld shall be deposited with City, or with a state or federally chartered bank in California as the escrow agent, who shall then pay such monies to Contractor. City retains the sole discretion to approve the bank selected by Contractor to serve as escrow agent. Upon satisfactory completion of the Services, the securities shall be returned to Contractor. Securities eligible for investment shall include those listed in Government Code Section 16430. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. In the alternative, under California Public Contract Code Section 22300, Contractor may request City to make payment of earned retention monies directly to the escrow agent at the expense of Contractor. Also at Contractor’s expense, Contractor may direct investment of the payments into securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor.

Upon satisfactory completion of the Services, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from City pursuant to the terms of California Public Contract Code Section 22300.

2.6 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Contractor submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.

2.7 Hourly Fees. Fees for the Services performed by Contractor on an hourly basis shall not exceed the amounts shown on Exhibit A.

2.8 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. Reimbursable expenses not listed in Exhibit A must be approved in advance by the Contract Administrator, in his or her sole discretion.

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Contractor shall not be entitled to any additional compensation for the attendance of meetings reasonably deemed necessary by City for the execution of the Services.

2.9 Payment of Taxes. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.

2.10 Payment upon Termination. In the event that City or Contractor terminates this Agreement pursuant to Section 8, City shall compensate Contractor for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination.

Contractor shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.

2.11 No Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.

SECTION 3. FACILITIES AND EQUIPMENT.

3.1 Contractor Provides Facilities and Equipment. Except as otherwise provided, Contractor shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. In no event shall City be required to furnish any facility or equipment that may involve incurring any direct expense.

3.2 Utility Relocation. Where applicable, pursuant to California Government Code Section 4215, City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.

3.3 Trenches or Excavations. Pursuant to California Public Contract Code Sections 6705 and 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply. a. Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.

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b. If the Services involve an estimated expenditure in excess of TwentyFive Thousand Dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by the City Engineer, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. c. City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue an order or amendment for additional services pursuant to Subsection

8.4 or 8.5 of this Agreement.
d. If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement.

Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.

SECTION 4. INSURANCE AND BOND REQUIREMENTS.

Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below and provide certified copies of insurance policies and original endorsements, indicating that Contractor has obtained or currently maintains insurance that meets the requirements of this Section and which is satisfactory, in all respects, to City. Contractor shall also deliver the payment and performance bonds required by this Section 4 with City. Contractor shall maintain the insurance policies required by this Section throughout the term of this Agreement. The cost of such insurance shall be included in Contractor’s compensation.

Contractor shall not allow any subcontractor, Contractor or other agent to commence work on any subcontract until Contractor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City, and has delivered the required bonds to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Contractor acknowledges the insurance policy must cover inter-insured suits between City and other insureds. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in

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the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator in the Contract Administrator’s sole discretion. If this Agreement continues for more than three (3) years duration, or in the event the Contract Administrator determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 4 may be changed accordingly upon receipt of written notice from the Contract Administrator; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Administrator to the City Council of City within ten (10) days of receipt of notice from the Contract Administrator.

4.1 Workers’ Compensation. Contractor shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Contractor pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy.

In the alternative, Contractor may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Contractor, if a program of selfinsurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. Pursuant to California Labor Code Section 1860, Contractor is required to secure the payment of compensation to Contractor’s employees.

Pursuant to California Labor Code Section 1861, Contractor hereby submits to City the following:

I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

Contractor Initial: _______

4.2 Commercial General and Automobile Liability Insurance. a. General Requirements. Contractor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general

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aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, leased, and non-owned automobiles. b. Minimum Scope of Coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9 including “any auto” and endorsement CA 0025 or equivalent). No endorsement shall be attached limiting the coverage.
c. Additional Requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
(i) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
(ii) The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. (iii) The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (iv) Any failure of Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.

4.3 Professional Liability Insurance.
a. General Requirements. Contractor, at its own expense, shall maintain professional liability insurance appropriate to Contractor’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)-year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage.

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b. Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
(i) The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
(ii) If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Contractor must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Contractor’s sole cost and expense, any extended reporting provisions of the policy, if Contractor cancels or does not renew the coverage. (iii) A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.

4.4 Pollution Liability Insurance. Contractor, at its own expense, shall maintain pollution liability insurance written on a per occurrence for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per pollution incident and ONE MILLION DOLLARS ($1,000,000.00) in the general aggregate. The policy shall apply to any incidents at or from any location on which Contractor performs the Services under this Agreement. The insurance must be maintained for at least one (1) year following the completion of Contractor’s services or the expiration or termination of this Agreement.

4.5 All Policies Requirements.
a. Verification of Coverage. Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The certificate of insurance must include the following reference: Asphalt Pavement Maintenance and Repair Services. The name and address for additional insured endorsements, certificates of insurance and notice of cancellation is: City of Yorba Linda, 4845 Casa Loma Ave, Yorba Linda, CA 92886. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Contractor.
b. Notice of Reduction in or Cancellation of Coverage. Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required

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insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4 to the Contract Administrator. c. Additional Insured; Primary Insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.

A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees, agents, authorized volunteers, and their respective insurers. d. Deductibles and Self-Insured Retentions. Contractor shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Contractor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Contractor procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. e. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
f. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.

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4.6 Payment and Performance Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secure the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement. Payment and performance bonds shall be secured from a surety company rated Grade “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator due to unique circumstances, and shall be authorized to write such bonds in the State of California. Contractor shall pay all bond premiums, costs, and incidentals.

Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. Without limiting the foregoing, Contractor understands that Civil Code Section 9550 requires a payment bond for all public works contracts involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000).

4.7 Remedies. In addition to any other remedies at law or equity City may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Contractor’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Contractor to stop work under this Agreement or withhold any payment that becomes due to Contractor hereunder, or both stop work and withhold any payment, until Contractor demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement.

SECTION 5. INDEMNIFICATION.

5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties

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of any kind (including costs and expenses incurred by City and reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Contractor fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Contractor, its officers, agents, employees, or subcontractors (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this Agreement.

5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder.

5.3 Subcontractors. Contractor shall incorporate similar indemnity agreements with its subcontractors. Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.

5.4 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity. In the event any applicable law contains a limitation on indemnification under this Agreement, such limitation shall supersede the provisions herein only to the extent required by said law.

SECTION 6. INDEPENDENT CONTRACTOR.

At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subsection 1.4; however, otherwise City shall not have the right to control the means by which Contractor accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall not at any time or in any manner represent that it is or any of its officers, employees, or agents are in any manner officers, officials, employees, or agents of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for

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the fees paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.

City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.

SECTION 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Contractor shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.

7.3 Prevailing Wages. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable prevailing wage laws and regulations and effectuating compliance with such laws, including, but not limited to the prevailing wage and related requirements set forth in this Subsection 7.3. Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. a. Public Work. Contractor hereby expressly acknowledges and agrees that City has never previously affirmatively represented to Contractor, its employees or agents in writing or otherwise that the Services are not a “public work,” as defined in Section 1720 of the California Labor Code. It is agreed by the Parties that, in connection with the development, construction (as defined by applicable law) and

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operation of the Services, including, without limitation, any public work (as defined by applicable law), if any, Contractor shall bear all risks of payment or non-payment of state and/or federal prevailing wages and/or the implementation of California Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. To the extent applicable, City will enforce all penalties required by law for Contractor’s failure to pay prevailing wages. b. California Labor Code. The Contractor’s attention is directed to Division 2, Part 7, Chapter 1 of the California Labor Code and especially to Article 2 (Wages); and Article 3 (Working Hours), thereof.
(i) In accordance with Sections 1773 and 1773.2 of the California Labor Code, City has found and determined the general prevailing rates of wages in the locality in which the public work is to be performed are those determined by the Director of Industrial Relations and available at https://www.dir.ca.gov/OPRL/2022- 1/PWD/Southern.html. Copies of the prevailing rates of wages are maintained with City’s principal office and are available to any interested party on request. Contractor shall post a copy of the prevailing rate of per diem wages at each job site. (ii) Contractor is aware of and will comply with the provisions of California Labor Code Section 1776, including the keeping of payroll records and furnishing certified copies thereof in accordance with said Section. Pursuant to California Labor Code Section 1771.4, Contractor must submit certified payroll records to the Labor Commissioner using the Department of Industrial Relations’ electronic certified payroll reporting (eCPR) system.
(iii) Pursuant to California Labor Code Section 1810, it is stipulated hereby that eight (8) hours labor constitutes a legal day’s work hereunder. (iv) Pursuant to California Labor Code Section 1815, work performed by employees of contractors in excess of eight (8) hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay.
(v) Pursuant to California Labor Code Section 1813, it is stipulated hereby that Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor hereunder for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one (1) calendar week in violation of the provisions of Article 3 (commencing with Section 1810), Chapter 1, Part 7, Division 2 of the California Labor Code. (vi) Contractor is aware of and will comply with the provisions of California Labor Code Sections 1777.5 and 1777.6 with respect to the employment of

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apprentices. Pursuant to Section 1777.5 it is hereby stipulated that Contractor will be responsible for obtaining compliance therewith on the part of any and all sub-consultants or subcontractors employed by Contractor in connection with this Agreement. (vii) Pursuant to California Labor Code Section 1775, it is hereby stipulated that Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for the Services by Contractor or any sub-consultant or subcontractor.
c. Bidding Eligibility. Pursuant to California Labor Code Section 1771.1, no contractor or subcontractor (or consultant or subconsultant) may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations. Pursuant to California Public Contract Code Section 6109, Contractor may not perform any Services hereunder with a subcontractor who is ineligible to perform the Services pursuant to Section 1777.1 or 1777.7 of the California Labor Code.
d. DIR Monitoring. Pursuant to California Labor Code Section 1771.4, Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
e. Indemnification Related to Prevailing Wages. Section 5, Indemnification, specifically encompasses Claims arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of California Labor Code Sections 1726 and 1781, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to provide any required disclosure or identification as required by California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.

7.4 Licenses and Permits, Fees, and Assessments. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions, and perform the Services. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions, and perform the Services.

In addition to the foregoing, Contractor and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties

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and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder.

7.5 Conflicts of Interest. Contractor represents, warrants, and covenants that Contractor presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement. Contractor further agrees that while this Agreement is in effect, Contractor shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement.

7.6 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.

7.7 Annual Appropriation of Funding. In accord with Article 16 Section 18 of the California Constitution, payment of compensation under this Agreement is contingent upon annual appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Subsection shall be construed to limit the right of either Party to terminate this Agreement as provided herein.

7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of FIVE HUNDRED DOLLARS ($500.00) as liquidated damages for each working day of delay in the performance of any of the Services. City may withhold from any monies payable on account of the Services performed by Contractor any accrued liquidated damages.

SECTION 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may terminate this Agreement at any time and without cause upon thirty (30) days’ written notification to Contractor. City may also terminate this Agreement pursuant to Subsection 8.8.

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8.2 Termination by Contractor. Contractor may terminate this Agreement upon sixty (60) days’ written notice to City.

8.3 Consequences of Termination. In the event of termination, Contractor shall be entitled to compensation for the Services satisfactorily performed up to the date of termination; City, however, may condition payment of such compensation upon Contractor delivering to City any or all materials provided to Contractor or prepared by or for Contractor or City in connection with this Agreement. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Administrator.

8.4 Administrative Change Orders. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Administrator to Contractor, incorporating therein any adjustment in (i) the total compensation, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. Any increase in compensation of up to five percent (5%) of the total compensation or TWENTY-FIVE THOUSAND DOLLARS ($25,000), whichever is less; or in the time to perform of up to one hundred eighty (180) days may be approved in writing by the Contract Administrator. Contractor understands and agrees that, if City grants an extension in time without additional work, City shall have no obligation to provide Contractor with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Contractor for any otherwise reimbursable expenses incurred during the extension period. All other extensions or modifications to this Agreement shall require a written amendment pursuant to Subsection 8.5.

8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. The Contract Administrator shall have the authority to execute amendments to this Agreement which do not materially change the terms hereof, in the Contract Administrator’s discretion, to the extent permitted by applicable federal, state, and local law. The Contract Administrator may refer any proposed amendment to the City Council for review and approval.

8.6 Assignment and Subcontracting. City and Contractor recognize and agree that this Agreement contemplates personal performance by Contractor and is based upon a determination of Contractor’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Contractor.

Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the Scope of Services, without prior written approval of the Contract

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Administrator. In the event of any unapproved assignment, including in connection with any bankruptcy proceeding, this Agreement shall be void. No approved assignment shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Contractor shall survive the expiration or termination of this Agreement.

8.8 Disputes, Default. In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any of the Services performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, in the sole discretion of the Contract Administrator. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, City's remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Contractor pursuant to this Agreement;
c. Retain a different contractor to complete the Services; and/or d. Charge Contractor the difference between the cost to complete the Services that is unfinished at the time of breach and the amount that City would have paid Contractor pursuant to Section 2 if Contractor had completed the Services.

Any failure on the part of City to give notice of Contractor’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.

8.9 Claims by Contractor. Claims, as that term is defined in California Public Contract Code Section 9204, by Contractor and, where applicable, any subcontractor, in connection with a public works project shall by subject to the mediation procedure in California Public Contract Code Section 9204.

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SECTION 9. KEEPING AND STATUS OF RECORDS.

9.1 Documents and Data. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Administrator or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.

9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials. Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

9.3 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Administrator to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Administrator

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shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

9.4 Reports. Contractor shall periodically prepare and submit to the Contract Administrator such reports concerning the performance of the Services required by this Agreement as the Contract Administrator shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Administrator of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.

9.5 Confidentiality. City and Contractor agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. Contractor, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the Contract Administrator or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. If Contractor, or any officer, employee, agent, or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any Claims caused by or incurred as a result of Contractor’s conduct.

Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any

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such response does not imply or mean the right by City to control, direct, or rewrite said response. Response to a subpoena or court order shall not be considered a voluntary disclosure so long as Contractor gives City notice of such court order or subpoena as provided herein. Contractor understands and agrees that it may be required to provide documents to the City to be produced in response to a Public Records Act request.

SECTION 10. MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Subsection shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.

10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.

10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

10.5 No Implied Waiver of Breach. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a nondefaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.

10.7 Contractor Principals and Representatives. The following principals of Contractor (“Principals”) are hereby designated as being the principals and

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representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
(Name) (Title)
(Name) (Title)
(Name) (Title)
It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.

10.8 City Contract Administration. This Agreement shall be administered by a City employee, «Staff_Contact», «Staff_Title» (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. It shall be Contractor’s responsibility to assure that the Contract Administrator is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Administrator. Unless otherwise provided by applicable law, the Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee.

10.9 Notices. Any written notice to Contractor shall be sent to:

Haitbrink Asphalt Paving, Inc.

Attn: Hunter Haitbrink
1480 Magnolia Ave.

Corona, Ca. 92879
Any written notice to City shall be sent to the Contract Administrator at:

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City of Yorba Linda
4845 Casa Loma Ave
Yorba Linda, CA 92886
Attn: Armando Jaime, Public Works Superintendent
with a copy to:

City Clerk
City of Yorba Linda
4845 Casa Loma Ave
Yorba Linda, CA 92886
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

10.10 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

10.11 Integration, Interpretation. This Agreement, including Exhibits A and B, represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

10.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

10.13 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.

10.14 Nondiscrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the

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performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.

10.15 No Third Party Beneficiaries. There are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

10.16 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

10.17 No Undue Influence. Contractor declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Contractor, or from any officer, employee, or agent of Contractor, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.

10.18 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or subagreement, or the proceeds thereof, for the Services to be performed under this Agreement.

10.19 Debarment and Suspension
A contract award will not be made to parties listed on the governmentwide exclusion in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implements Executive orders 12549 (3 CFR part 1986 Comp. p. 189) and 12689 (3 CFR part 1989 Comp. p. 235) “Debarment and Suspension.” [Signatures on Following Page]

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IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.

CITY OF YORBA LINDA
Mark Pulone, City Manager
Attest:

Marcia Brown, City Clerk
Approved as to Form:

Todd Litfin, City Attorney
Haitbrink Asphalt Paving Inc.
«Contractor_Signature_1»

«Contractor_Signature_2»

[Note: 2 officer’s signatures required if
Contractor is a corporation, unless
provided with a certificate of secretary inlieu]

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EXHIBIT A

SCOPE OF SERVICES
Services shall include Apahlt Pavement Maintenance and Repair Services , including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, in the amount not to exceed EIGHT HUNDRED THIRTYSEVEN THOUDSAND ONE HUNDRED FIFTY AND NO CENTS ($ 837,150.00) as further detailed in the attached pages (if any). If the Services include Services pursuant to a request for proposals or bid, the Services shall include the work contemplated by the entire “Bid Package” or “Request for Proposals” for the Services, including all plans, addenda, documentation, and specifications attached thereto. A copy of the Bid Package and/or Request for Proposals, as applicable shall be retained with a copy of this Agreement. Contractor shall keep a copy of the same for at least three (3) years following termination of this Agreement.

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PARKS AND RECREATION DEPARTMENT
DATE: AUGUST 6, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE KUDRON, DIRECTOR OF PARKS AND RECREATION
SUBJECT: TRANSFER OF CELL TOWER EQUIPMENT AT VETERANS PARK

RECOMMENDATION
It is recommended that the City Council approve the Bill of Sale Agreement related to the decommissioning of the cell tower equipment at Veterans Park and authorize the City Manager to sign said agreement.

BACKGROUND
The City entered in to a communications site lease agreement at Veterans Park with Royal Street Communications on October 7, 2008. The lease agreement entailed the operation of a cellular communications site by Royal Street Communications; the upgrade of an existing sports field lighting pole to allow for the installation of cellular antennas and related hardware; and the construction of an equipment room that is connected to the restroom building. The lease agreement was transferred to SBA Communications Corporation in 2012. In 2022, SBA Communications Corporation decommissioned the site, and the cellular equipment was removed from the light pole and equipment room.

DISCUSSION
SBA Communications Corporation is now seeking to convey the existing building addition and the cell phone tower (pole) to the City of Yorba Linda. The equipment room was constructed as an addition to the Veterans Park restroom/concession building and was designed to match the existing exterior. The building addition now acts as a City storage room and houses emergency shelter supplies such as cots, blankets, and other disaster supplies. The tower is a larger diameter light pole, which still supports lighting for the adjacent baseball field. If the City does not accept these improvements, SBA Communications Corporation would remove the improvements, which would cause disruption of park activities. The Bill of Sale agreement is attached and has been reviewed by the City Attorney.

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TRANSFER OF CELL TOWER EQUIPMENT AT VETERANS PARK
P a g e | 2

FISCAL IMPACT
There is no cost to transfer the equipment from SBA Communications Corporation to the City of Yorba Linda and therefore, there is no fiscal impact.

ALTERNATIVES
Do not approve the Bill of Sale Agreement and provide direction to staff.

ATTACHMENTS
A. Bill of Sale Agreement

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00720533 - v1
Site ID: CA40837
Site Name: Melody - Decommission

BILL OF SALE
THIS BILL OF SALE (“Agreement”) is made and entered into as of this ____ day of August, 2024 (“Transfer Date”), by SBA STEEL II, LLC, a Florida limited liability company, having an address of 8051 Congress Avenue, Boca Raton, FL 33487 (“Grantor”) to, CITY OF YORBA LINDA, a California municipal corporation, having an address of 4845 Casa Loma Avenue, Yorba Linda, CA 92886 (“Grantee”).

Preliminary Statement:

Grantor is conveying to Grantee the existing building addition (“Shelter”) and the cell phone tower (“Tower”), each located on that certain parcel of real property (“Property”), which Property is more particularly described on Exhibit “A” attached hereto and which Shelter and Tower are each more particularly described on Exhibit “B” and Exhibit “C”, respectively, attached hereto.

Grantor desires to convey all of its right, title and interest in and to the Shelter and the Tower to Grantee as of the Transfer Date.

In consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor and Grantee hereby agree as follows:

1. SALE OF PERSONAL PROPERTY. Grantor hereby conveys, sells, transfers, quit claims and delivers to Grantee all of Grantor’s right, title, claim and interest in and to the Shelter and the Tower. Grantor represents to Grantee that Grantor is the owner of the Shelter and the Tower.

NOTWITHSTANDING ANYTHING TO THE CONTRARY, EXCEPT AS EXPRESSLY

PROVIDED HEREIN, TO THE FULLEST EXTENT PERMITTED BY LAW, THE SHELTER AND THE TOWER ARE BEING TRANSFERRED IN AN “AS-IS” CONDITION AND “WITH ALL FAULTS” AND SPECIFICALLY AND EXPRESSLY WITHOUT ANY

WARRANTIES, REPRESENTATIONS OR GUARANTEES, EITHER EXPRESS OR

IMPLIED, OF ANY KIND, NATURE OR TYPE WHATSOEVER FROM OR ON BEHALF

OF GRANTOR, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES

AS TO THE CONDITION, QUALITY, HABITABILITY, MERCHANTABILITY, FITNESS

OR SUITABILITY FOR ANY PARTICULAR USE OR PURPOSE, ALL OF WHICH ARE HEREBY DISCLAIMED BY GRANTOR.

2. ATTORNEYS’ FEES AND COSTS. In the event of any litigation or arbitration arising out of this Agreement, the prevailing party will be entitled to recover all expenses and costs incurred in connection therewith, including reasonable attorneys' fees and costs.

3. BINDING EFFECT. This Agreement will be binding upon, and will inure to the benefit of, the Grantor, Grantee and their respective successors and assigns.

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Site ID: CA40837
Site Name: Melody - Decommission

4. GOVERNING LAW. This Agreement will be governed by and construed and enforced in accordance with the laws of the state in which the Property is located without regard to principles of conflicts of laws.

5. COUNTERPARTS; SIGNATURES. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Signatures exchanged by facsimile or in PDF form via e-mail are effective for all purposes hereunder to the same extent as original signatures.

THIS AGREEMENT has been executed by Grantor and Grantee on the Transfer Date.

GRANTOR:

SBA STEEL II, LLC
By: _______________________________
Name: Jason Silberstein
Title: Executive Vice President, Site Leasing
Date: _______________________________
Witness:____________________________ Witness:____________________________ Print Name:_________________________ Print Name:_________________________

GRANTEE:

CITY OF YORBA LINDA
By: _____________________________
Name: _____________________________
Title: _____________________________
Date: _____________________________
Witness: ___________________________ Witness: ___________________________ Print Name: ________________________ Print Name: ________________________

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Site ID: CA40837
Site Name: Melody - Decommission
EXHIBIT "A" TO BILL OF SALE
Legal Description of the Property
Site located at: 4756 Valley View Street, in the City of Yorba Linda, County of Orange, State of California 92886

Legal Description:

Being a portion of:

Latitude: 33° 53' 28.2100" Longitude: -117° 49' 40.2700"

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Site ID: CA40837
Site Name: Melody - Decommission
EXHIBIT "B" TO BILL OF SALE
Description of the Shelter
Existing Building consisting of:
 Equipment Area approximately 12’ x 18’ depicted in yellow  Parks Storage Room approximately 14’x18’ depicted in red

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Site ID: CA40837
Site Name: Melody - Decommission
EXHIBIT "C" TO BILL OF SALE
Description of the Cell Phone Tower
Monopole Light Cell Phone Tower approximately 65 Feet in height.

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PUBLIC WORKS DEPARTMENT
DATE: AUGUST 6, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JAMIE LAI, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: AUSTIN POSTOVOIT, SENIOR MANAGEMENT ANALYST SUBJECT: APPROVAL OF A TWO-YEAR RENEWAL AMENDMENT TO THE

MAINTENANCE SERVICE AGREEMENT WITH WEST COAST
ARBORISTS, INC., FOR CITYWIDE TREE SERVICES AND ASSOCIATED

MAINTENANCE

RECOMMENDATION
It is recommended that the City Council:

1. Approve an amendment to the citywide tree maintenance services agreement with West Coast Arborists (WCA), Inc, to allow for an additional two-year (Fiscal Year 2024-2025 & 2025-2026) term extension in an amount not to exceed $2,837,272.00 for the two-year term, in sub amounts of $1,418,636.00 for Fiscal Year 2024-2025, and $1,418,636.00 for Fiscal Year 2025-2026; and

2. Authorize expenditures for contract contingencies and potential additional services or unanticipated work performance that may arise, in an amount of $425,590.00 (15% of the amendment amount) for the two-year term extension, $212,795.00 for Fiscal Year 2024-2025, and $212,795.00 for Fiscal Year 2025-2026; and

3. Upon receipt of appropriate documents, authorize the City Manager to execute the contract amendment.

BACKGROUND
The City’s current contract for citywide tree maintenance was awarded on June 7, 2016, to West Coast Arborists, Inc. (WCA), for citywide services rendered for the Local Landscape Maintenance Assessment District, Public Works and Parks and Recreation departments.

This contract encompasses all maintenance trimming as well as incidental tree management services such as inventory maintenance and emergency response duties for the City’s 25,000 tree inventory.

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A P P R O V A L O F A N A M E N D M E N T T O T H E M A I N T E N A N C E S E R V I C E A G R E E M E N T W I T H W E S T C O A S T A R B O R I S T S , I N C . , F O R T R E E

S E R V I C E S A N D A S S O C I A T E D M A I N T E N A N C E P a g e | 2
The City has since exercised all term renewals with the last renewal term expiring on June 30, 2024. The City entered into a one-month term extension with WCA to allow for continued service while options for service moving forward were evaluated, in an amount not to exceed $75,000.00 which is the established maximum amount noted within the City’s purchasing policy. A second one-month extension in the same amount was also executed for the period to include the month of August 2024.

DISCUSSION
Due to the high annual expenditure for tree maintenance and impacts associated with the citywide tree trimming services agreement, staff performed projections on costs and evaluated market conditions for associated services in the region prior to conducting a solicitation for contractual services earlier this year. Due to the expensive responses received in its solicitation for bids, the City Manager and City staff determined that it was in the best interest of the City to pursue alternative procedures other than the standard competitive bidding process to attempt to determine if it could obtain services at a lower total cost to the City. The City Council confirmed this determination with the rejection of the offers submitted in response to the City’s solicitation for contractual services.

Consistent with the Public Contract Code, Yorba Linda Municipal Code § 3.04.130(N) authorizes the waiver of the competitive bidding process for “non-public projects” as long as the City Council is advised that the competitive bidding process has been waived, the reasons for the waiver, and the City Council grants approval. Pursuant to Public Contracts Code § 22002(d) and Yorba Linda Municipal Code § 3.04.010, “maintenance work” is a “non-public project”. Maintenance work includes landscape maintenance, mowing, watering, trimming, tree pruning, planting, tree and plant replacement, and irrigation and sprinkler system servicing, retrofit, and repair. Hence, the proposed agreement for tree trimming services is a maintenance agreement subject to approval by the City Council. City staff recommended the waiver of the competitive bidding process to attempt to get lower negotiated pricing, and the result was a proposed lower contract cost amendment.

A primary update to the agreement is the inclusion of increased insurance requirements that will better protect the City in the event of an accident and will allow the City to remain compliant with the California Insurance Pool Authority (CIPA) requirements. Additional modifications include updated scope of services, general provisions and a requirement to provide a no-cost comprehensive citywide tree inventory update. There is also a new fee schedule that uses revised units of measurement and includes updated service categories to more clearly define services by tree diameter and type such as palm tree trimming.

FISCAL IMPACT

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A P P R O V A L O F A N A M E N D M E N T T O T H E M A I N T E N A N C E S E R V I C E A G R E E M E N T W I T H W E S T C O A S T A R B O R I S T S , I N C . , F O R T R E E

S E R V I C E S A N D A S S O C I A T E D M A I N T E N A N C E P a g e | 3
The combined annual budget allocation for tree maintenance services within the LMAD, Parks and Recreation, Capital Improvement and Public Works budgets for Fiscal Year 2024- 2025 is sufficient to cover the costs of the proposed amendment. The total amendment of $2,837,272.00 is spread equally over two-year term extension, $1,418,636.00 for Fiscal Year 2024-2025, and $1,418,636.00 for Fiscal Year 2025-2026. The proposed annual value of the recommended amendment is exactly equal to the preceding term’s (Fiscal Year 2023- 2024) initial amount, representing no increase to the annual contract expenditure capacity.

The Fiscal year 2024-2025 (current year) amount is comprised in part by the previously approved not-to-exceed amount of $150,000.00 for the two month long temporary extensions needed during the procurement process. The annualized amendment amounts are generally apportioned across the three comprising departments/divisions as noted below:
 LMAD (Account No. 2010350-432300) – 75% of total Contract Amount  Public Works Maintenance (Account No. 1010330-432300) – 13% of Total Contract Amount
 P&R Parks Maintenance (Account No. 1010460-432300) – 12% of Total Contract Amount
The approximate proportions of planned contract budget may be adjusted during the Fiscal Year based upon actual utilization by each division. Additional requests for a similar amount will be made for the future Fiscal Year 2025-2026 as a part of the eventual two-year budget process planned to begin in the coming months.

ALTERNATIVES
The City Council may choose not to approve the recommended additional term renewal amendment with West Coast Arborists. Should this alternative be selected, it is recommended that Council alternatively approve at least an additional three-month term extension to allow staff sufficient time to conduct an alternative procurement process. It should be noted that this option may present maintenance challenges that would arise from onboarding a new contractor since annual tree trimming is scheduled outside of bird nesting season.

ATTACHMENTS
Attachment 1- West Coast Arborists, Inc. (Eleventh Amendment)

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ADMINISTRATION DEPARTMENT
DATE: AUGUST 6, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DAVID ALBAUGH, ADMINISTRATIVE SERVICES DIRECTOR
SUBJECT: CLASSIFICATION, COMPENSATION AND TERMS OF EMPLYMENT FOR

MISCELLANEOUS, MID-MANAGEMENT AND MANAGEMENT

EMPLOYEES

RECOMMENDATION
It is recommended that the City Council:

1. Adopt the following resolutions:
a. Resolution No. 2024-5907, relating to the classification, compensation and terms of employment for Miscellaneous employees.
b. Resolution No. 2024-5908, relating to the classification, compensation and terms of employment for Mid-Management employees.
c. Resolution No. 2024-5909, relating to the classification, compensation and terms of employment for Management employees.

2. Authorize supplemental budget appropriations of $338,532 for Fiscal Year 2024-25 across the General Fund, Library Fund, and Landscape Maintenance Assessment District (LMAD) Fund to fund the incremental costs associated with the approval of the employment agreements above what has already been included in the adopted budget.

BACKGROUND
Pursuant to Chapter 2 of the Yorba Linda Municipal Code, the classification, compensation, and terms of employment for City employees are established by resolution of the City Council. In accordance with the Myers-Milias-Brown Act, the City met and conferred with the Yorba Linda Chapter of the Orange County Employees Association representing Miscellaneous employees and with the City Employees Associates representing the MidManagement employees in order to negotiate and approve Memoranda of Understanding (MOUs) relative to salary and other terms and conditions of employment. In addition, the

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CLASSIFICATION, COMPENSATION AND TERMS OF EMPLYMENT FOR MISCELLANEOUS,

MID-MANAGEMENT AND MANAGEMENT EMPLOYEES
P a g e | 2
City also met and conferred with the members of the Management employees group regarding salary and benefits.

DISCUSSION
The meet and confer process resulted in proposed agreements with the Miscellaneous, MidManagement, and Management employees. All three groups have ratified the proposed changes by a membership vote. The following is a summary of the Changes from the previously approved agreements:

1. Term: Three (3) years, from July 1, 2024, through June 30, 2027.

2. Compensation:
a. A six percent (6%) general wage increase to the base wage rate of all represented classifications effective July 1, 2024.
b. A three percent (3%) general wage increase to the base wage rate of all represented classifications effective July 1, 2025.
c. A three percent (3%) general wage increase to the base wage rate of all represented classifications effective July 1, 2026.

3. Inclusion of New Year’s Eve as a paid holiday during the City’s scheduled holiday closure between December 24 and January 1 each year.

4. Contract language has been amended in each of the MOUs to clarify and update existing language and to accurately reflect City policy and practices, including the Letters of Understanding previously approved by the City Council in 2023. These changes are administerial in nature.

FISCAL IMPACT
The costs associated with these compensation changes are estimated to be $626,262 for FY 2024-25, for which $287,730 is already included in the adopted budget. Approximately eighty percent (80%) is allocated to the General Fund, fifteen percent (15%) is allocated to the Library Fund, and five percent (5%) to the LMAD fund.

Compensation changes for FY 2025-26 and FY 2026-27 will be included in the two-year budget proposal to be presented to the City Council in Calendar Year 2025.

ALTERNATIVE
Do not adopt the above resolutions and direct staff to restart the meet and confer process and consider mediation and/or impasse procedures.

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CLASSIFICATION, COMPENSATION AND TERMS OF EMPLYMENT FOR MISCELLANEOUS,

MID-MANAGEMENT AND MANAGEMENT EMPLOYEES
P a g e | 3

ATTACHMENTS

1. Resolution No. 2024-5907

2. Attachment A – Memorandum of Understanding between the City of Yorba Linda and the Yorba Linda chapter of the Orange County Employees’ Association.

3. Exhibit Miscellaneous Employee’s Salary Schedule

4. Resolution No. 2024-5908

5. Attachment B – Memorandum of Understanding between the City of Yorba Linda and the Yorba Linda Mid-Management Association

6. Exhibit Mid-Management Employees Salary Schedule

7. Resolution No. 2024-5909

8. Exhibit Management Employees Salary Schedule

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RESOLUTION NO. 2024-5907

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, RELATING TO THE CLASSIFICATION,

COMPENSATION AND TERMS OF EMPLOYMENT OF

MISCELLANEOUS EMPLOYEES AND RESCINDING
RESOLUTION 2021-5773
WHEREAS, the City management and employee representatives have met and conferred in good faith to reach an agreement to provide certain classes of the City’s employees with salary increases and other benefits pursuant to Government Code Section 3500 et seq.; and
WHEREAS, the City desires to rescind Resolution No. 2021-5773 and adopt Resolution No. 2024-5907; and
WHEREAS, the City desires to approve the negotiated Memorandum of Understanding (Attachment A) with the Miscellaneous Employees of the City of Yorba Linda represented by the Orange County Employees Association which provides for certain salary increases and changes in benefits to its employees as provided in the Memorandum of Understanding dated July 1, 2024 to June 30, 2027; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yorba Linda as follows:

Section 1. Classification and compensation language previously presented in the Resolutions has been placed in the Memorandum of Understanding. The Memorandum of Understanding will be the governing document for classification and compensation for Miscellaneous employees represented through the bargaining unit.

Section 2. Except as otherwise specified to the contrary in this Resolution of the Memorandum of Understanding, all provisions shall be effective as of July 1, 2024 pursuant to Minute Order action of the City Council.

Section 3. Resolution No. 2021-5773 is hereby rescinded in its entirety.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 6th day of August, 2024. ______________________________

TARA CAMPBELL, MAYOR

CITY OF YORBA LINDA

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RESOLUTION NO. 2024-5907
PAGE NO. 2
ATTEST:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
______________________________

CITY ATTORNEY

STATE OF CALIFORNIA )
ss.

COUNTY OF ORANGE )
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 6th day of August, 2024, and was carried by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

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RESOLUTION NO. 2024-5907
PAGE NO. 3

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ATTACHMENT A

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF YORBA LINDA
and

THE YORBA LINDA CHAPTER OF THE

ORANGE COUNTY EMPLOYEES ASSOCIATION
JULY 1, 2024 TO JUNE 30, 2027

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TABLE OF CONTENTS
PREMABLE 3
ARTICLE I REPRESENTATION UNIT 5
ARTICLE II BASIC COMPENSATION 5
ARTICLE III COMPENSATION 7
ARTICLE IV RETIREMENT 8
ARTICLE V MEDICAL/HEALTH AND LIFE INSURANCE 11
ARTICLE VI DENTAL AND VISION INSURANCE/EMPLOYEE ASSISTANCE 14 ARTICLE VII SECTION 125 PLAN 15
ARTICLE VIII DISABILITY INSURANCE 15
ARTICLE IX 9/80 WORK SCHEDULE 16
ARTICLE X VACATION LEAVE 16
ARTICLE XI SICK LEAVE 17
ARTICLE XII PERSONAL NECESSITY LEAVE 17
ARTICLE XIII INDUSTRIAL SICK LEAVE 18
ARTICLE XIV SUBPOENAED ABSENCE 18
ARTICLE XV JURY DUTY 19
ARTICLE XVI LEAVE OF ABSENCE WITHOUT PAY 19
ARTICLE XVII MILITARY LEAVE OF ABSENCE 19
ARTICLE XVIII CATASTROPHIC LEAVE 20
ARTICLE XIX OVERTIME 20
ARTICLE XX STANDBY PAY 21
ARTICLE XXI HOLIDAYS 22
ARTICLE XXII BEREAVEMENT LEAVE 25
ARTICLE XXIII ASSOCIATION MEETINGS 25
ARTICLE XXIV BOOT ALLOWANCE 25
ARTICLE XXV LAYOFF POLICY 26
ARTICLE XXVI MISCELLANEOUS PROVISIONS 26
ARTICLE XXVII AVOIDANCE OF INEQUITIES 27
ARTICLE XXVIII NONDISCRIMINATION 27
ARTICLE XXIX SEVERABILITY 28
ARTICLE XXX EXISTING CONDITIONS OF EMPLOYMENT 28
ARTICLE XXXI BILINGUAL PAY 28
ARTICLE XXXII CLASS B DRIVER’S LICENSE 28
ARTICLE XXXIII DEFERRED COMPENSATION 28
ARTICLE XXXIV GRIEVANCE PROCEDURE 29
ARTICLE XXXV ME TOO CLAUSE 32
ARTICLE XXXVI LABOR/MANAGEMENT COMMITTEE 33
ARTICLE XXXVII APPROVAL 33
ARTICLE XXXVIII TERM OF MEMORANDUM OF UNDERSTANDING 33

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MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF YORBA LINLDA
(hereinafter called “City”)
and

THE YORBA LINDA CHAPTER

OF THE ORANGE COUNTY EMPLOYEES ASSOCIATION
(hereinafter called the “Association”)

PREAMBLE
WHEREAS, pursuant to California law, the CITY acting by and through its designated representatives duly appointed by the governing body of said CITY, and the representatives of the ASSOCIATION, a duly recognized employee association, have met and conferred in good faith and have fully communicated and exchanged information concerning wages, hours and other terms and conditions of employment for the period of July 1, 2024 through June 30, 2027; WHEREAS, except as otherwise expressly provided herein, all terms and conditions of this agreement shall apply to all employees represented by the Association; and WHEREAS, the representatives of the CITY and the ASSOCIATION desire to reduce their agreement to writing.

NOW, THEREFORE, this Memorandum of Understanding is made to become effective July 1, 2024 and it is agreed as follows:

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ARTICLE I

REPRESENTATION UNIT
It is recognized that the Yorba Linda Chapter of the Orange County Employees Association is the employee organization that has the right to meet and confer in good faith with the City on behalf of the miscellaneous employees of the City of Yorba Linda whose classifications are listed in Exhibit "A" of this agreement.

The City shall provide bulletin boards or space on existing bulletin boards at all City facilities.

Such bulletin boards are to be available for the purpose of posting notices pertaining to Association business only.

ARTICLE II

BASIC COMPENSATION
There is hereby established a basic plan of classification, compensation and terms of employment for all miscellaneous employees of the City of Yorba Linda who are now or will in the future be employed in any of the classifications of employment listed in Exhibit "A".

The plan is created and established in order to recognize efficient service and will aid in establishing the principle of equal pay for equal work for municipal employment. The basic compensation plan shall consist of the monthly compensation ranges listed in Exhibit “A”. Each range includes five (5) steps or rates of pay and shall be interpreted and applied as follows:

A. The first step is the minimum rate and is normally the hiring rate of the class. The City Manager is authorized to make an appointment to a position at any other level of the salary range when he deems it necessary.

B. Every employee in a regular, permanent, competitive service position shall have a salary anniversary date established at the completion of six (6) months of satisfactory service and shall receive a merit increase at this time upon recommendation of the Department Head and approval of the City Manager. In the event a miscellaneous employee is hired at the third step (C Range) or higher, the salary anniversary date will be established at

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the completion of one (1) year of satisfactory service and may receive a merit increase at this time upon recommendation of the Department Head and approval of the City Manager.

C. Salary on Promotion. When an employee is promoted from employment in one classification to employment in a classification allocated to a higher range, he/she shall be advanced to the lowest step in such higher range which will provide not less than a five percent (5%) wage increase over the salary received prior to the promotion, not to exceed top step. A new salary anniversary date shall be established which shall be six (6) months from the effective date of the promotion.

D. Reassignment of Compensation Ranges. Any employee who is employed in a classification which is reassigned to a different salary range from that previously assigned shall be retained at the same salary step in the new range as previously held and shall retain credit for the length of service in such step; provided, however, the City Manager may at the time of reassignment, place the employee in such step and make such change in anniversary dates as may be deemed appropriate.

E. Compensation on Transfer. The salary rate and salary anniversary date of an employee who is transferred within the classification shall not change.

F. Change in Class Salary Range. If a classification is allocated to a different salary range, an employee in a position in that classification shall be compensated at the same numbered step in the new range as he/she was receiving in the previous range and his/her salary anniversary date shall not change.

G. Compensation for Provisional Appointments. Subject to the following limitations, an employee who is required on the basis of a provisional appointment, to serve in a class with a higher salary range than that of the classification in which he/she is normally assigned, shall receive the entrance salary rate of the higher salary or one rate higher than the rate he/she normally received, whichever is greater.

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1. The written approval of the City Manager shall be required.

2. The employee shall perform all the duties and assume all the responsibilities of a higher class.

3. Compensation for acting appointments shall be limited to the temporary filling of a vacant regular position due to termination, promotion, or extended sick leave of the incumbent or the temporary filling of newly budgeted positions.

H. Salary on Demotion. An employee who is demoted shall have his/her salary rate reduced to the nearest lower salary rate of the classification of the position to which he/she is demoted. He/she shall not be required to serve a probation period in the lower position.

The effective date of the demotion shall become his/her new salary anniversary date, and he/she shall earn eligibility for annual merit increases thereafter.

I. Length of Service Required when Advancement Denied. When an employee has not been approved for advancement to the next higher step, he/she may be reconsidered for such advancement at any subsequent time up to their next regular semi-annual or annual eligibility date.

J. Special Merit Advancement. In such cases wherein an employee demonstrates exceptional ability and proficiency in the performance of his/her duties, his/her Department Head may recommend to the City Manager a special merit increase without regard to the minimum length of service. Advancements under this Section shall not change the employee's salary anniversary date.

K. Pay Periods. All employees shall be paid on a biweekly basis. The basic biweekly salary shall be computed by multiplying the monthly salary by twelve (12) months and dividing the resultant product by twenty-six (26) pay periods. The basic hourly rate for all employees with a scheduled forty (40) hour work week shall be computed by dividing the biweekly salary by eighty (80) hours.

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L. Work Week and Work Day The regular work week for all employees shall be forty (40) hours. For purposes of accruing vacation, sick leave and bereavement leave, the working day for forty (40) hours per week employees shall be eight (8) hours.

M. Lead Pay Employees designated by the City Manager as the lead employee in a particular classification shall receive additional pay in the amount of 5% of their base salary. If an employee assumes or is scheduled to assume the preponderance of duties of a lead classification, the need shall be re-visited after six (6) months in the assignment.

N. Out of Classification Pay Employees designated by the City Manager as having been assigned special job duties on a temporary basis that are 1) outside of the job description for their classification and 2) for reasons other than provisional appointment as outlined in Article II(G), shall receive additional pay in the amount of 5% of their base salary. This pay shall NOT be categorized as Special Compensation, within the meaning of the Public Employees’ Retirement Law, for purposes of computing pensionable compensation. Employees will be required to sign a form acknowledging their understanding that this additional pay will not be added to their base pay for purposes of computing pensionable compensation. In the event an employee performs the out of classification duties in excess of six (6) months, then the Department Head or designee shall re-evaluate the situation to determine if the need still exits and whether a permanent re-classification is warranted.

ARTICLE III

COMPENSATION
Effective July 1, 2024, each classification in the bargaining unit shall be adjusted by a 6% costof-living adjustment (COLA).

Effective July 1, 2025, each classification in the bargaining unit shall be adjusted by a 3.0% COLA.

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Effective July 1, 2026, each classification in the bargaining unit shall be adjusted by a 3.0% COLA.

Classifications and Salary Ranges are included in Exhibit “A” The City shall perform a total compensation market study and provide it to the OCEA at least four (4) months prior to the expiration of this MOU. The results of the total compensation market study shall be one of the many factors that may be considered by the parties in formulating and considering proposals for a successor to the 2024-27 MOU, however, the product of the above studies shall not result in any mandated changes in wages, hours or other terms and conditions of employment.

ARTICLE IV

RETIREMENT
Employment with CITY is subject to the California Public Employees’ Pension Reform Act of 2013 (hereinafter “PEPRA”) and the California Public Employees Retirement System (hereinafter “CalPERS”).

Pursuant to PEPRA, individuals who are employed by any public employer before January 1, 2013, and who become employed by CITY for the first time on or after January 1, 2013, shall be subject to the retirement plan that was available to comparable CITY safety or non-safety employees as of December 31, 2012, if the individual was subject to reciprocity with CalPERS.

Pursuant to PEPRA, individuals who were previously employed by CITY, and who become reemployed by CITY after January 1, 2013, shall be subject to the retirement plan that was in effect at the time they separated from the employment of CITY, regardless of the length in the break of service.

PEPRA requires a different benefit plan for CITY employees who are hired on or after January 1, 2013, and who are new employees and new members on or after January 1, 2013.

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PEPRA defines a “new employee” to mean either of the following: an employee, including one who is elected or appointed, of a public employer who is employed for the first time by any public employer on or after January 1, 2013, and who was not employed by any other public employer prior to the that date. A “new employee” also means an employee, including one who is elected or appointed, of a public employer who is employed for the first time by any public employer on or after January 1, 2013, and who was employed by another public employer prior to that date, but who was not subject to reciprocity.

PEPRA defines a “new member” to mean an individual who becomes a member of any public retirement system for the first time on or after January 1, 2013, and who is not a member of any other public retirement system prior to that date; an individual who becomes a member of a public retirement system for the first time on or after January 1, 2013, and who was a member of another public retirement system prior to that date that was not subject to reciprocity; or an individual who was an active member in a retirement system and who had a break in service of more than six months before returning to active membership in that same retirement system with a new employer.

Effective January 1, 2013, public employers that offer a defined benefit plan shall only offer the defined benefit formulas to new members established pursuant to PEPRA.

Effective January 1, 2013, each retirement system that offers a defined benefit plan for nonsafety members who are new members will have a retirement formula that is 2% @ 62.

Equal sharing of normal costs between public employers and public employees shall be the standard for new members. The standard shall be that employees pay at least 50% of normal costs. Employers cannot pay any of the required employee contribution for new employees who are also new members.

The “normal cost” is defined as the annual actuarially determined normal cost for the defined benefit plan of an employer expressed as a percentage of payroll.

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the employee contribution rate is first established, or the normal cost rate in effect at the time of the last adjustment of the employee contribution rate.

The employee contributions for new members may be more than one-half of the normal cost if the increase has been agreed to through the collective bargaining process subject to several restrictions.

Final compensation for new members shall now mean the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months immediately preceding his or her retirement. The member also has the option of designating an alternative 36 consecutive month period during the member’s applicable service.

Classic Members
This retirement plan only applies to classic members within the meaning of PEPRA. Classic members are those individuals employed by CITY prior to January 1, 2013. Classic members are also those individuals who are hired by CITY after January 1, 2013, and who were employed by another public agency prior to January 1, 2013, and who had membership with a previous reciprocal retirement system without a six month break in service between employment by eligible public agencies.

The City shall provide a retirement benefit package for the employees which is based on single highest year compensation and includes unused sick leave credit, post-retirement survivor allowance and Level 4 1959 Survivors Benefits.

As of July 2016, classic members shall contribute a total of 7.0% PERS contribution towards the employer’s share, and CITY shall contribute the balance of the employee’s and employer’s share of the contribution to PERS pursuant to Government Section Code 20516(a).

As of August 7, 2007, the City pays and reports the value of Employer Paid Member Contribution (EPMC) to CalPERS as additional compensation for each employee. This benefit shall consist of paying 7% of the normal contributions for employees, and reporting this 7% as compensation earnable.

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New Members
This retirement plan only applies to new members hired by CITY on or after January 1, 2013.

The member contribution rate will be half the normal cost of payroll as determined by CalPERS.

The member contribution rate may change over time if the total normal cost rate for new miscellaneous members fluctuates by more than 1% of payroll. The total normal cost rate will be impacted over time by the actual demographics of CITY’s miscellaneous plan and the actuarial assumptions used in the funding of the retirement benefits. The member rate will be reviewed once a year by CalPERS when the actuarial valuation of CITY’s miscellaneous plan is performed.

CITY shall promptly notify Association and the affected member of any change in the member contribution rate imposed by CalPERS during the term of this MOU. Any such change in the member contribution rate is mandatory, and it shall be implemented by City in accordance with the CalPERS notification. Any change in the member contribution rate during the term of this MOU imposed by CalPERS shall not be subject to the meet and confer process, and the parties specifically agree that changes in the member contribution rate for new members are outside the scope of representation.

These benefits are not available to limited service employees which include part-time, seasonal or temporary employees.

ARTICLE V

MEDICAL/HEALTH AND LIFE INSURANCE
Life Insurance on Employee. The CITY shall provide life insurance on the life of each regular, permanent, competitive service employee and pay the full annual premium. The face amount of said policies shall be equal to the employee’s annual salary and increasing it to the nearest one thousand dollars ($1,000) to a maximum of two hundred thousand $200,000. Additional life insurance coverage may be purchased if the employee pays for the additional premium. Upon

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separation from employment, continuation life insurance coverage may be purchased if the employee pays for the additional premium.

Medical/Health Insurance. The CITY shall provide health insurance to employees through the CALPERS PEMHCA medical program. The CITY shall pay toward the annual cost of the health plan in accordance with the following schedule:

Regular, competitive service employees
Effective January 1, 2017, all City employees shall participate in the City’s “cafeteria plan”.

Effective January 1, 2017, the City shall contribute an amount equal to the average family rate of all HMO plans offered through the CALPERS PEMCHA medical program to the “cafeteria plan”.

The above contribution amount will be adjusted on a yearly basis effective January 1st of each year, according to the published CALPERS PEMCHA medical premium rates for Orange County.

Employees hired on or after April 1, 2017 shall receive a City contribution to the “cafeteria plan” of 90% of the average family rate of all HMO plans offered through CALPERS PEMCHA medical program. In addition, employees will receive a City contribution to an established health reimbursement accout (HRA) of 10% of the average family rate of all HMO plans offered through CALPERS PEMCHA medical program. The above contribution amounts will be adjusted on a yearly basis effective January 1st of each year, according to the published CALPERS PEMCHA premium rates for Orange County
The cafeteria plan is utilized first to pay health insurance premiums; any residual amount may be received as cash. Employees may elect to adjust their contribution to deferred compensation in an amount equal to part or all of any residual amount above the cost of their medical premiums.

Employees who wish to opt out of medical coverage with the City of Yorba Linda will receive the cash equivalent of the cafeteria amount subject to their hire date. To qualify to waive medical coverage with the City of Yorba Linda, the employee must show proof of coverage in a group health plan such as with a spouse’s employer. Proof of other group coverage must be submitted each year at open enrollment.

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Retired, competitive service employees and employees’ dependents Retirees and their dependents are eligible to participate in the CALPERS PEMHCA medical program.

Employees hired before April 1, 2017, will receive the CALPERS minimum required contribution toward their retiree medical. In addition, those employees who have retired from a retirement system the City participates in within 120 days of separation from the City will receive an additional City contribution to a health reimbursement account (HRA) toward their retiree medical in a total amount, including the CALPERS minimum required contribution describe above, up to the average of the two party HMO rates provided on a yearly basis by CALPERS. The above contribution amounts will be adjusted on a yearly basis effective January 1st of each year, according to the published CALPERS PEMCHA premium rates for Orange County. The amount deposited into each retiree’s HRA account will be no greater than the total cost of their monthly health insurance premium, and any remaining funds not utilized for premiums is forfeited to the City.

Employees hired on or after April 1, 2017, will receive the CALPERS minimum required contribution toward their retiree medical.

Part-time permanent employees and employees’ dependents Effective January 1, 2015, the City will pay $269.46 per month for the PERS Health Plan premium on behalf of those employees and their dependents who opt to participate in the PERS Health Plan.

City health contribution increases for Permanent Part-time (30 hour) employees will be adjusted in accordance with the Affordable Care Act formula published on a yearly basis. The employee will be required to pay for the balance of the premium.

Part-time permanent employees enrolled in the CALPERS medical program may continue on coverage if they retire from the City of Yorba Linda within 120 days of separation from the City. The City will contribute the required CALPERS minimum contribution toward their retiree coverage.

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ARTICLE VI

DENTAL AND VISION INSURANCE/EMPLOYEE ASSISTANCE PROGRAM The CITY shall provide dental and vision insurance and employee assistance program benefits for the following classes of employees and their dependents. The CITY shall pay - the annual cost of the dental, vision and employee assistance program in accordance with the following schedule:

Regular, competitive service employees. The City will provide Dental and Vision Coverage for employees and dependents.

Part-time, permanent employees and employees’ dependents. Access to the City’s dental and vision plan is available to these employees at an annual cost to be determined by the City.

Retired competitive service employees and employees’ dependents. For employees hired prior to April 1, 2017, the City will provide Dental and Vision Coverage in retirement. Coverage is also provided to eligible dependents.

Employees hired on or after April 1, 2017, will not be eligible for Dental or Vision coverage in retirement.

Part-time, permanent employees hired on or after April 1, 2017, will not be eligible to purchase Dental or Vision coverage in retirement.

Limited service employees - temporary/seasonal. No coverage is provided.

Employee Assistance Program (EAP) – The City provides an Employee Assistance Program for all full-time benefited employees and any members of their household. The EAP program provides face-to-face counseling along with a variety of other life-event services at no cost to the employee or their family.

ARTICLE VII

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SECTION 125 PLAN
The CITY shall provide a Section 125 Plan for employees to seek reimbursement for expenses relating to medical and dependent care.

ARTICLE VIII

DISABILITY INSURANCE
A. The CITY shall provide a short term and long term disability insurance plan for all regular, permanent, competitive service employees. The CITY pays one hundred (100) percent of the premium for both plans.

B.1. Short-term disability.
a. Fourteen (14) day elimination period. (First day coverage if hospitalized due to an accident.) Employees shall be required to use sick leave during the elimination period. Use of vacation accrual at the end of sick leave shall be at the option of the employees.
b. At the end of the fourteen (14) day elimination period the employee shall receive fifty (50) percent of his/her salary for the remainder of the short-term disability period, to a maximum of one thousand (1,000) dollars per week.

B.2. Long-Term disability.
a. One hundred eighty (180) day elimination period.
b. At the end of the one hundred eighty (180) day elimination period, the employee shall receive the lesser of:
i. Sixty (60) percent of pre-disability earnings, to a maximum of (10,000) dollars per month.
ii. Seventy (70) percent of pre-disability earnings, reduced by deductible income to a maximum of (10,000) dollars per month.

ARTICLE IX

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9/80 WORK SCHEDULE
The City shall implement a 9/80 work schedule which consists of two consecutive work periods containing the equivalent of nine work days instead of ten in a two week period. Employees will work eight days for nine hours per day and one day for eight hours, for a total of eighty hours in two consecutive work periods. Exceptions to the 9/80 work schedule shall be those employees determined by the City Manager to be necessary in order to maintain specific City operations and service levels. These exceptions include a standard forty-hour schedule, a 4/10 schedule, and other alternative schedules determined by the City Manager.

ARTICLE X

VACATION LEAVE
All regular, permanent, competitive service employees shall be granted annual vacation leave and shall accrue annual vacation leave on the following basis:
1 - 3 years of service 2 weeks/year or 3.077 hours/pay period 4 - 9 years of service 3 weeks/year or 4.615 hours/pay period 10 + years of service 4 weeks/year or 6.154 hours/pay period Part-time regular, permanent competitive service employees shall accrue vacation time on a pro-rata basis based on the full-time equivalent level of their position (e.g. 0.75 or 0.50).

Employees may accumulate an amount up to double their annual accrual. Any excess “carryover” must be approved by the City Manager. Once the maximum accrual is reached, there is no more accrual of vacation until one goes below the maximum and has “cap room” to accrue.

Any unused vacation time above one-half of the employee’s annual vacation accrual may be subject to buyback in June of each year at the employee’s option. The buyback is based on the number of unused vacation hours requested for buyback multiplied by the employee’s hourly rate.

In order to be eligible for the yearly buyback, an employee must utilize a minimum of forty (40) hours of vacation during the fiscal year in which the buyback is requested.

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ARTICLE XI

SICK LEAVE
All regular, permanent, competitive service employees shall accrue annual sick leave at a rate of one day (eight hours) per calendar month. Part-time, regular, permanent, competitive service employees shall accrue sick leave on a pro-rata basis based on the full-time equivalent level of their position (e.g. 0.75 or 0.50). Employees are eligible to accumulate a maximum of 2,500 hours of sick leave.

Employees hired prior to July 1, 2001, shall be paid upon separation any accumulated, unused sick leave at the rate of 25% after ten (10) years of service; 50% after fifteen (15) years of service; and 75% after twenty (20) years of service. Unused sick leave shall be paid at a rate of 100% only if the employee contributes the entire amount of the funds up to the IRS annual limit into a qualified deferred compensation plan implemented by the City. Any funds available beyond the IRS limit will be paid as cash at the rate of 100%.

Employees hired on or after July 1, 2001 shall not be eligible for the payoff of unused sick leave upon separation as set forth above.

ARTICLE XII

PERSONAL NECESSITY LEAVE
All regular, permanent, competitive service employees participating in a 9/80 Plan shall not be granted personal necessity leave. All regular, permanent, competitive service part- and full-time employees not participating in a 9/80 Plan shall be granted personal necessity leave not to exceed five (5) days per fiscal year. Personal necessity leave shall be used only for circumstances requiring the employee to be away from the office that are not covered under the City’s sick leave policy such as non-medical appointments that cannot be scheduled on the employee’s regular days off or other emergencies. Personal necessity leave shall not be used as additional vacation leave or for appointments that could be scheduled on an employee’s regular days off. By requesting this leave, an employee self-attests that the reason for the absence falls under a qualifying circumstance. Personal necessity leave shall be deducted from accumulated sick leave.

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ARTICLE XIII

INDUSTRIAL SICK LEAVE
Whenever any permanent employee is absent on account of injuries arising out of and in the course of his or her employment, such employee shall receive full compensation during the first three (3) days of such absence. Thereafter compensation shall be paid in accordance with and under the provisions of the Workers' Compensation Insurance and Safety Act of the State of California. The CITY shall, in addition thereto, compensate for any such employee who is still absent from duty after the third day, an amount equal to the difference between the amount said employee receives from the Workers' Compensation Insurance Fund and the amount of his or her regular compensation. The employee is justly entitled to receive the maximum allowance as provided herein. This additional compensation shall be for a maximum period of one hundred eighty (180) calendar days. The one- -hundred eighty (180) calendar day period need not be consecutive if the employee's absence is directly traceable to a single accident.

ARTICLE XIV

SUBPOENAED ABSENCE
A regular, permanent, competitive service employee who is called to answer a subpoena as a witness for court appearances during the employee's work hours shall be compensated at his or her regular rate of pay for all hours of absence from work due to answering the subpoena on CITY business provided the employee shows proof of such subpoena and deposits witness fees received for such hours, exclusive of mileage, with the City Treasurer. Fees for answering a subpoena as a witness during hours other than regularly scheduled working hours may be retained by the employee.

ARTICLE XV

JURY DUTY
An employee summoned to and serving on jury duty shall inform his Department Head and may be absent from duty with full pay. Except for travel expense, the employee shall receive the difference between his full regular pay and the pay received for jury duty.

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ARTICLE XVI

LEAVE OF ABSENCE WITHOUT PAY
Permanent full or part-time employees, or probationary employees, encountering an emergency or unplanned circumstance which requires their attention away from the workplace may request a leave of absence. Employees will be eligible for leave of absence without pay only if they have exhausted all eligible and available vacation, sick, and other accrued leave balances. The department head may grant via written approval a leave of absence without pay for a period not to exceed one (1) week. The City Manager may grant a permanent or probationary employee leave of absence without pay for a period not to exceed one (1) year. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request, and the approval will be in writing. Upon expiration of a regularly approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted. Failure on the part of the employee on leave to report promptly at the expiration of the leave shall be cause for discharge. Failure of the employee to report for work more than five consecutive days after his or her leave of absence has ended shall constitute an automatic resignation by the employee as of the date on which the employee was due to return to work.

ARTICLE XVII

MILITARY LEAVE OF ABSENCE
All permanent, competitive service employees are entitled to military leave of absence. An employee who has been in the service of the Armed Services of the United States (Army, Navy, Marine Corps or Air Force) for active reserve duty, shall be allowed a paid leave of absence for a period not to exceed thirty (30) days in any calendar year, provided that the period of active reserve duty does not exceed one hundred eighty (180) calendar days. An employee required to perform active duty with such organizations for a period in excess of that for which compensation may be paid hereunder may be granted a leave of absence without pay. CITY service shall not be deemed to be interrupted by such absence. An employee's employment status, with reference to promotion or continuance in office, employment, reappointment to office

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or re-employment, shall not be prejudiced directly or indirectly by reason of any absence from duty on account of actual service in the military forces of the United States.

ARTICLE XVIII

CATASTROPHIC LEAVE
All permanent, competitive service employees may receive catastrophic leave donations from other employees (on a voluntary basis) if the employee has a catastrophic medical condition which will require the employee to be on unpaid leave for at least one month. Provided the employee has exhausted all accrued sick leave, vacation, and compensatory time, a written request for donations shall be submitted to the Department Head. The request must be accompanied by a medical statement from the employee's attending physician who verifies the employee's need for an extended medical leave and must include a brief statement of the nature of the illness or injury and an estimated time the employee will be unable to work. Employees who receive donations under this procedure and who exhausted all donated sick leave may request an additional donation period subject to the aforestated provisions.

ARTICLE XIX

OVERTIME
Payment for Overtime.

Except for employees exempt from the provisions of the Federal Fair Labor Standards Act, employees shall be compensated for overtime by the payment at the rate of one-and-one-half (1-1/2) times base salary for all hours over forty (40) paid in an FLSA seven (7) day work period, and at the rate of two (2) times base salary for Sundays and holidays regardless of the number of hours worked in the FLSA seven (7) day work period.

Scheduled and approved holiday hours, floater holiday hours, vacation hours, compensation hours and personal necessity hours shall be considered as “hours worked” for the purpose of calculating overtime. The aforementioned examples regarding compensation hours which are paid, but not worked will be accounted for as if they were worked for calculating overtime. .

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Sick hours shall not be be considered as “hours worked” for the purpose of calculating of overtime.

Compensatory Time.

A. Subject to the approval of the Department Head or designee, employees may elect to take compensatory time off in lieu of receiving overtime pay. An employee who requests and is approved for compensatory time off in lieu of overtime is entitled to one-and-one-half (1-1 /2) hours of compensatory time off for each hour for which he/she would otherwise be entitled to overtime pay and two (2) times base salary for Sundays and scheduled holidays. Compensatory time accumulated may not exceed forty (40) hours at any one time.

B. Compensatory time off must be used in a minimum of quarter (.25) hour increments.

Additionally, compensatory time off may be used in combination with vacation time, sick leave, and/or personal necessity. Other leave time (i.e., vacation, sick leave, personal necessity, etc.) cannot be converted to compensatory time.

ARTICLE XX

STANDBY PAY
An employee assigned to standby duty and placed on the standby list during the employee's regular time off shall be compensated in the following manner:

1. The equivalent of two (2) hours at the employee’s regular rate of pay for Monday through Friday.

2. The equivalent of three (3) hours at the employee’s regular rate of pay for Saturday, Sunday and scheduled holidays.

3. The equivalent of three (3) hours at the employee’s regular rate of pay for a furlough day or closed Friday of the 9 days/80-hour work schedule.

The designated “weekend” 4 days/10 hours work schedule employee assigned to standby duty and placed on the standby list during the employee's regular time off shall be compensated in the following manner:

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1. The equivalent of two (2) hours at the employee’s regular rate of pay for the four days on which the employee normally works.

2. The equivalent of three (3) hours at the employee’s regular rate of pay on the three days that are designated as the employee’s regularly scheduled “weekend” days off.

Standby pay is not applicable to regular forty (40) hour per week pay. Overtime rate or compensatory time pay starts the moment the employee is called/begins the journey to the yard/job site and stops when the employee leaves the yard or job site. Anytime an employee is called/begins the journey to the yard, the employee is paid at the overtime rate or compensatory time as follows:

1. A minimum of two (2) hours at time and one-half for callback duty work performed on Monday through Saturday.

2. A minimum of two (2) hours at double time for callback duty work performed on Sunday or scheduled holidays.

ARTICLE XXI

HOLIDAYS
The CITY shall recognize the following days as paid holidays for all employees with annual holiday schedules published prior to the start of the calendar year:

New Years Day
Martin Luther King’s Birthday
Lincoln's Birthday (1)
President’s Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving
Day after Thanksgiving
Christmas Eve
Christmas

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New Year’s Eve -
(1) Lincoln's Birthday has been changed to the employee's birthday, which may be used at any time during the fiscal year.
(2) Any scheduled holiday falls that on an employee’s scheduled Saturday off will be recognized on Friday, the day before. If that Friday happens to be a scheduled day off, or if an employee is required to work on the recognized Friday holiday, the holiday hours will be converted to floater hours and may be taken at any time during the fiscal year. Any scheduled holiday that falls on an employee’s scheduled working Saturday will be recognized for that employee on Saturday.
(3) Any scheduled holiday that falls on an employee’s scheduled Sunday off will be recognized on Monday, the day after. If that Monday happens to also be a scheduled day off, the holiday hours will be converted to floater hours and may be taken at any time during the fiscal year.

Any scheduled holiday that falls on an employee’s scheduled working Sunday will be recognized for that employee on Sunday.
(4) If a scheduled holiday otherwise falls on an employee’s regularly scheduled day off, the holiday hours will be converted to floater hours and may be taken at any time during the fiscal year.

All City facilities shall be closed to the public between the Christmas Day and New Year’s Eve holidays. Employees may choose to work on the non-holiday closure days or must submit paid time off for any non-holiday workdays during the closure.

Holiday Pay
All full-time and permanent part-time employees (including probationary employees) shall not be required to be on duty on holidays unless the employee's services are needed and required in the interests of the public health, safety, or general welfare. In such a case, any such employee shall be entitled to compensation at two (2) times the regular rate of pay if the employee has worked in excess of forty (40) hours for the week in which the holiday occurs.

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Each of the designated holidays which fall on a working day when City offices are normally open under the City’s 9/80 Plan will be observed for the same number of hours as that normally scheduled work day. Therefore, for full-time employees, holidays that fall on an eight (8) hour Friday will be compensated as eight (8) hours, holidays that fall on a normal nine (9) hour workday will be compensated as nine (9) hours, and holidays that fall on a normal ten (10) hour workday will be compensated as ten (10) hours. For permanent part-time employees, the applicable number of holiday hours granted on a holiday shall be determined based on the number of hours that the employee would normally work on that day (i.e. an employee who normally works six (6) hours on the day of the holiday shall receive six (6) holiday hours of pay.

Employees who are sick on holidays that are normal duty days will not receive extra holiday credit and will not be charged for sick leave.

If an employee is on leave without pay during the time period in which the holiday occurs, the employee will not receive holiday pay.

Floating Holidays
Floating holiday hours may be used subject to approval of the Department Director after consideration of the departmental workload and other staffing considerations, such as, but not limited to, the leave schedules of other employees already approved, medical leave and position vacancies. The floating holiday will be credited for the same number of hours as scheduled on the day the holiday floater is taken. Floating holiday hours shall be taken during the same fiscal year in which they are earned, and if not used, shall be lost.

If a floating holiday is taken on a day when an employee is scheduled to work, the employee must have a sufficient number of floating holiday hours, vacation leave, or compensatory time to cover the eight (8) or nine (9) hour workday. Absent these accrued leave times, an employee’s time will be reflected as leave without pay for the difference.

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ARTICLE XXII

BEREAVEMENT LEAVE
Upon request, regular, permanent competitive service employees in full-time and permanent part-time status shall receive necessary time off with pay, not to exceed five (5) days in any one (1) instance, to attend to a member of their immediate family who has become critically ill to the point where death is imminent, or to arrange for or attend a funeral of a member of their immediate family. For purposes of this section, immediate family shall mean father, father-inlaw, mother, mother-in-law, step-parent, brother, sister, wife, husband, registered domestic partner, child, grandparent, grandchild, person for which the employee serves as legal guardian or person that has dependency upon the employee. Bereavement days may be used nonconsecutively.

ARTICLE XXIII

ASSOCIATION MEETINGS
The Association President or designee shall be granted time during normal business hours not to exceed six (6) hours per fiscal year to conduct Association business. The Association President or designee shall provide an accounting of his or her Association business related hours to the Personnel Officer.

ARTICLE XXIV

BOOT/UNIFORM ALLOWANCE
Employees in job classifications who are required to wear safety boots shall be entitled to a reimbursement of up to two-hundred ($200) dollars per fiscal year for the purchase or repair of approved boots. Reimbursement shall be issued upon presentation of a receipt of such purchase/repair. Employees will be responsible for properly maintaining and safekeeping their work boots. Replacement for lost or abused boots will not be made.

The following classifications will receive a uniform allowance equal to $26.22 per month, which reflects the value of the uniforms and related maintenance provided by the City. This amount is reported to CALPERS as pensionable compensation and as compensation subject to federal and state income taxes.

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Maintenance Worker I; Maintenance Worker II; Landscape Inspector; Leadworker; Maintenance Contract Administrator; Facilities Maintenance Technician; Custodian, Facilities Maintenance Custodian.

ARTICLE XXV

LAYOFF POLICY
It may be appropriate in certain circumstances for the City to reduce its staff. The CITY shall update the layoff policy to provide greater detail as to the layoff procedures.

ARTICLE XXVI

MISCELLANEOUS PROVISIONS
Automobile Use Reimbursement. An employee may claim automobile reimbursement for the use of his/her own private automobile in the course of his/her CITY employment or on CITY business. Such use of a private vehicle shall only be when the CITY vehicle is not available for transportation. Reimbursement at a rate consistent with the Internal Revenue Service standard may be approved for use of private vehicles on CITY business within the CITY or within a radius of sixty (60) miles there from.

Commercial Transportation Allowance.

A. Allowances for use of commercial transportation shall be based upon scheduled airline coach rates in regard to all out-of-town travel on CITY business.

B. The use of private vehicles by employees on CITY business on out-of-town CITY trips, within the State, may be approved by the City Manager. If an employee prefers to use his/her private vehicle, he/she may be reimbursed up to the amount of the cost of commercial transportation only. The Internal Revenue Service standard rate per mile will not apply in cases where the calculated reimbursement amount exceeds the cost of commercial transportation.

C. When air, rail or public transportation is used, expenses necessary for local transportation, such as taxi cab and bus fare, will be allowed whenever such

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transportation is necessary for the conduct of CITY business after approval by the City Manager.

Out-of-City Travel Meetings and Convention Expense.

If, in the judgment of the City Manager, the estimated expenses of the approved contemplated travel, lodging and other related expenses pertinent to said trip are too high and would create a hardship for the employees to finance initially and the employees do not have City-issued purchasing cards, then the City Manager may authorize an advance payment of the estimated amount to the employee. Upon return of the employee from said trip, he/she shall submit an itemized statement as to his/her actual expenses. Final adjustments shall be made to the favor of the employee or the CITY, whichever the case may be. The cost of lodging and meals shall be at a reasonable rate, appropriate to the purpose of the trip, and in compliance with Administrative Order No. 51 – Transportation, Travel and Meeting expenses.

Miscellaneous Expense. Telephone and telecommunication charges incurred while on out-of-city business will be allowed for work-related calls as approved by the Department Head, Finance Department or City Manager.

ARTICLE XXVII

AVOIDANCE OF INEQUITIES
Subject to City Council approval, the City Manager may authorize special adjustment to avoid or eliminate inequities resulting from the strict application of any provisions of this Contract.

ARTICLE XXVIII

NONDISCRIMINATION
No person in the competitive service or applying for a position therein, shall be employed, promoted or discharged, or in any way favored or discriminated against because of political opinions or affiliations or because of race, color, sex, age, ancestry, national origin, handicap or religious belief.

No question posed in any examination, on any application form, or by any appointing power shall be framed so as to attempt to elicit information concerning race, color, sex, age, ancestry,

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national origin, handicap, political or religious opinions or affiliations of any applicant unless such information is determined by the Personnel Officer to be job related and a requirement for appointment within the guidelines established by the State and Federal Government.

ARTICLE XXIX

SEVERABILITY
In the event that any provisions of this Memorandum of Understanding are declared invalid by any court of competent jurisdiction, such decision shall not invalidate the entire Memorandum of Understanding, it being the express understanding of the parties hereto that all other provisions are not declared invalid shall remain in full force and effect.

ARTICLE XXX

EXISTING CONDITIONS OF EMPLOYMENT
Except as provided herein, all other existing terms and conditions of employment affecting the ASSOCIATION and its members shall remain in full force and effect.

ARTICLE XXXI

BILINGUAL PAY
Employees designated by the City Manager shall receive bilingual pay in the amount of $40 per pay period.

ARTICLE XXXII
CLASS B DRIVER’S LICENSE
Employees designated by the City Manager shall receive pay in the amount of one-hundred ($100) per month for possessing a valid Class B License to operate specified equipment.

ARTICLE XXXIII

DEFERRED COMPENSATION
Beginning October 1, 2018 the City will make a matching contribution of up to $50 per month to each employee’s deferred compensation account provided that the employee is making a monthly contribution. Beginning January 1, 2022, all newly hired employees covered by this

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agreement will be automatically enrolled in the deferred compensation plan at the matching level ($50 per month) with an option to affirmatively opt out.

ARTICLE XXXIV

GRIEVANCE PROCEDURE
Any non-probationary permanent full- or part-time employee in the competitive service shall have the right to invoke the grievance procedure on the basis of any alleged violation of the personnel rules and regulations or this memorandum of understanding, including alleged improper treatment of the employee where such treatment is not the result of a disciplinary process, performance evaluation, or alleged violation of accepted safety practices and procedures.

Employee performance evaluations and management rights reserved to the City shall not be subject to the grievance procedure herein.

The time limits specified for grievances may be extended to a definite date by mutual agreement of the employee and the City Manager, but absent such agreement, the failure of an employee to proceed with a grievance within the time limits specified shall be deemed a resolution of the grievance based on the last decision reached.

Non-Disciplinary grievances will be handled in a three (3) step process as follows: 1) Informal Grievance, 2) Formal Grievance, and 3) Appeal.

Step 1 – Informal Grievance
Whenever possible, an employee who has a complaint should try to solve the problem through informal discussion with his or her immediate supervisor. Upon receipt of such a complaint or grievance, verbally or in writing, the immediate supervisor shall investigate if necessary and reply within five (5) working days. If the employee is not satisfied with the reply, he or she may file a formal grievance.

Step 2 – Formal Grievance
A formal grievance may be filed by an employee or their union representative within ten (10) working days of the occurrence of the act or omission giving rise to the grievance and shall be presented in writing by the employee, or their designated representative, to the employee’s

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Department Head, with a copy sent to the City Manager. The Department Head shall make any investigation deemed necessary to allow fair consideration of the grievance and shall present a written reply to the employee within ten (10) working days after receipt of the grievance. A copy of the reply shall be forwarded to the City Manager.

Step 3 – Appeal
If the employee is still not satisfied with the decision, he or she may file a written appeal to the City Manager within five (5) working days after receipt of the Department Head’s reply. Within ten (10) working days, the City Manager shall make a written decision which shall be final and binding on all parties.

When disciplinary action has been taken and the employee has received written notification of the determination resulting in a demotion, suspension, reduction in pay, or termination, the employee shall have the right to appeal in person or in writing to the Assistant City Manager. A disciplinary appeal process will be conducted in a two (2) step process as follows: 1) Assistant City Manager, 2) City Manager Appointment of a Hearing Officer.

Step 1 – Assistant City Manager
The employee or their representative must submit a written request for a hearing and provide written responses to the charges within seven (7) working days after having been provided with a copy of the notice of determination. Any failure to appeal within the process and prescribed timelines shall make the action of the hearing officer final and conclusive.

The Assistant City Manager, serving as the hearing officer, shall set a date, time, and location for hearing to be held within ten (10) working days of receipt of the appeal. Upon meeting with the employee and/or employee’s representative, the Assistant City Manager may further investigate before reaching a final determination. The Assistant City Manager shall render a decision in the matter as to the charges and the level of disciplinary action to be received within fourteen (14) working days of the hearing.

Step 2- City Manager Appointment of a Hearing Officer

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1. When a disciplinary action has been taken and the employee has received written notification of the determination at Step 1 of the appeal process that results in sustaining a demotion, suspension, reduction in pay, or termination, the employee shall have the right to appeal in person or in writing to a hearing officer appointed by the City Manager from a list of hearing officers provided by the State Mediation and Conciliation Service through a mutual strike process.

2. The employee must submit a written request for a hearing and provide written responses to the charges within seven (7) working days after having been provided with a copy of the notice of determination after the step 1 appeal process. Any failure to appeal within the process and prescribed timelines shall make the action of the step 1 hearing officer final and conclusive.

3. The City Manager shall appoint the hearing officer to conduct a hearing on the appeal of any disciplinary action not satisfactorily resolved at Step 1 of the appeal process. The hearing officer shall set a date, time, and location for a hearing to be held within ten (10) working days of receipt of the appeal.

4. A hearing shall be conducted in the manner most conducive in the opinion of the hearing officer to the determination of the truth, and the hearing officer shall not be bound by technical rules of evidence. Decisions made shall not be invalidated by an informality in the proceedings.

5. The hearing shall be closed.

6. The hearing officer shall determine the relevancy, weight, and credibility of testimony and evidence. The hearing officer shall base his or her findings on the preponderance of evidence.

7. Each side will be permitted an opening statement and closing argument. The Department Head, and/or legal representative for the Department Head, shall present his or her witnesses and evidence to sustain the charges, and the employee and/or representative for the employee, will then present his or her witnesses and evidence in defense.

8. Each side will be allowed to make opening and closing statements, and will be allowed to examine and cross-examine witnesses under oath.

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9. Both the Department Head and the employee or their respective designees may be represented by legal counsel.

10. The hearing officer shall, if requested by either party, subpoena witnesses and/or require production of the records or material evidence. The hearing officer may, prior to or during a hearing, grant a continuance for any reason he or she believes to be important to his or her reaching a fair and proper decision.

11. The hearing officer shall prepare a recommended decision and forward it to the City Manager no later than thirty (30) days after the matter of appeal was taken under submission by the hearing officer. The recommended decision shall set forth which charges, if any, the hearing officer feels are sustained and the reason(s) for sustaining the charges.

12. After receiving the recommendation of the hearing officer, the City Manager may sustain or reject any or all of the charges filed against the employee, and may sustain, reject, or modify the disciplinary action invoked against the employee. The decision of the City Manager shall be binding and considered final, with no further rights of appeal by the employee.

13. If the City Manager finds for the employee, he/she may order that all or part of the employee’s lost compensation be paid and shall order the employee’s reinstatement.

14. Either party may request and obtain a transcript of the hearing by making appropriate arrangements for payment of the cost of transcription.

ARTICLE XXXV

ME TOO CLAUSE
Any additional salary or deferred compensation increase beyond the items listed above given to one of the other bargaining units during the term of this agreement would be made available to the Miscellaneous bargaining unit. This does not include any other bargaining unit selecting a different option from the City’s final counteroffer for salary increase / deferred compensation, or the Annual Leave offer accepted by the Management bargaining unit.

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ARTICLE XXXVI

LABOR/MANAGEMENT COMMITTEE
To provide a means for continuing communications between the parties, and for promoting a climate of constructive employee relations, a Labor/Management Committee shall be established which will consist of up to four (4) representatives designated by the City and four (4) representatives designated by the Association. Meetings will be held to promote communication and cooperation between the parties, to improve work quality and safety, and to address matters of mutual concern other than individual grievances. Meetings under this article shall be scheduled at the request of either of the parties at a mutually agreeable time and location during the City’s normal working hours (Monday through Thursday, 7:30 a.m. to 5:30 p.m., and every other Friday from 8:00 a.m. to 5:00 p.m.). Employees shall not be compensated for offduty attendance.

ARTICLE XXXVII

APPROVAL
It is the understanding of the CITY and the ASSOCIATION that the Memorandum of Understanding has no force or effect whatsoever unless and until signed by the Personnel Officer of the City of Yorba Linda and the principal representatives of the ASSOCIATION and ratified by the City Council.

ARTICLE XXXVIII

TERM OF MEMORANDUM OF UNDERSTANDING
This Memorandum of Agreement shall be in effect, commencing July 1, 2024, and ending at midnight on June 30, 2027.

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IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Agreement this ____day of __________, 2024.

CITY OF YORBA LINDA YORBA LINDA CHAPTER/OCEA
By _________________________________ By_________________________________ Signature Signature
_________________________________ _________________________________ Printed Name Printed Name

_________________________________ _________________________________ Title Title
By _________________________________ By_________________________________ Signature Signature
_________________________________ _________________________________ Printed Name Printed Name

_________________________________ _________________________________ Title Title
By _________________________________ By_________________________________ Signature Signature

_________________________________ _________________________________

Printed Name Printed Name

_________________________________ _________________________________ Title Title

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EXHIBIT A

MISCELLANEOUS STEP A STEP B STEP C STEP D STEP E
Accountant 6,405 6,726 7,062 7,415 7,786
Account Clerk 4,404 4,624 4,855 5,098 5,353
Accounting Technician 5,506 5,781 6,070 6,374 6,692
Administrative Secretary 5,268 5,532 5,808 6,099 6,404
Administrative Secretary - Housing 5,795 6,085 6,389 6,709 7,044 Assistant Civil Engineer 7,603 7,984 8,383 8,802 9,242
Assistant Planner 6,356 6,674 7,007 7,358 7,726
Associate Planner 7,373 7,742 8,129 8,535 8,962
Building Inspector Aide 5,995 6,295 6,609 6,940 7,287
Building Inspector 6,660 6,993 7,343 7,710 8,096
Building Inspector Supervisor 7,842 8,234 8,645 9,078 9,532 Building Permit Aide 4,808 5,049 5,301 5,566 5,844
Building Permit Technician 5,995 6,295 6,609 6,940 7,287 Business License Technician 4,956 5,204 5,464 5,737 6,024 City Clerk Specialist 5,194 5,453 5,726 6,012 6,313
Communications Specialist 5,646 5,929 6,225 6,536 6,863 Community Preservation Officer 5,992 6,291 6,606 6,936 7,283 Community Preservation Officer / CDBG Coordinator 6,291 6,606 6,936 7,283 7,647 Community Preservation Technician 4,296 4,511 4,737 4,974 5,222 Custodian 4,885 5,129 5,385 5,654 5,937
Deputy City Clerk 7,062 7,415 7,785 8,175 8,584
Engineering Aide 6,155 6,462 6,786 7,125 7,481
Facilities Maintenance Custodian 5,351 5,618 5,899 6,194 6,504 Facilities Maintenance Technician 5,633 5,914 6,210 6,520 6,846 GIS Analyst 7,748 8,135 8,542 8,969 9,417
Grading Inspector 6,536 6,863 7,206 7,567 7,945
Graphics Specialist 5,133 5,390 5,659 5,942 6,239
Housing & Redevelopment Specialist 7,373 7,742 8,129 8,535 8,962 IT Administrator 8,372 8,791 9,230 9,692 10,176
IT Analyst 8,372 8,791 9,230 9,692 10,176
IT Technician 6,462 6,785 7,125 7,481 7,855
Irrigation Technician 5,130 5,387 5,656 5,939 6,236
Junior Civil Engineer 6,914 7,260 7,623 8,004 8,404
Landscape Inspector 6,536 6,863 7,206 7,567 7,945
Leadworker 5,633 5,914 6,210 6,520 6,846
Librarian 5,792 6,081 6,385 6,704 7,040
Librarian Assistant 5,080 5,334 5,600 5,880 6,174
Library Clerk 3,621 3,802 3,992 4,191 4,401
Library Clerk Typist I 3,800 3,990 4,190 4,399 4,619

CITY OF YORBA LINDA
2024/25 SALARY SCHEDULE
EFFECTIVE: JULY 1, 2024

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EXHIBIT A

MISCELLANEOUS STEP A STEP B STEP C STEP D STEP E

CITY OF YORBA LINDA
2024/25 SALARY SCHEDULE
EFFECTIVE: JULY 1, 2024
Library Clerk Typist II 3,983 4,182 4,391 4,611 4,841
Library Technician 4,530 4,756 4,994 5,244 5,506
Library Graphics Specialist 5,133 5,390 5,659 5,942 6,239 Library Page 3,123 3,280 3,444
Library Technology Specialist 7,312 7,678 8,062 8,465 8,888 Maintenance Contract Administrator 7,689 8,073 8,477 8,901 9,346 Maintenance Worker I 4,342 4,559 4,787 5,026 5,278
Maintenance Worker II 4,885 5,129 5,385 5,654 5,937
Maintenance Worker I (Equipment) 4,342 4,559 4,787 5,026 5,278 Maintenance Worker II (Equipment) 4,885 5,129 5,385 5,654 5,937 Management Assistant 5,668 5,951 6,249 6,561 6,889
Office Assistant I 3,621 3,802 3,992 4,191 4,401
Office Assistant II 3,983 4,182 4,391 4,611 4,841
Park Maintenance Supervisor 7,043 7,395 7,765 8,153 8,560 Payroll Technician 5,781 6,070 6,374 6,692 7,027
Plan Check Engineer 8,658 9,091 9,545 10,023 10,524
Plan Checker 7,661 8,044 8,446 8,869 9,312
Planning Aide 5,307 5,572 5,850 6,143 6,450
Public Works Inspector 6,536 6,863 7,206 7,567 7,945
Recreation Coordinator 5,887 6,182 6,491 6,815 7,156
Recreation Specialist 3,713 3,898 4,093 4,298 4,513
Recreation Supervisor 7,175 7,534 7,911 8,306 8,721
Senior Account Clerk 4,956 5,204 5,464 5,737 6,024
Senior Building Inspector 7,327 7,693 8,078 8,482 8,906 Senior Building Permit Technician 6,221 6,532 6,859 7,202 7,562 Senior Landscape Inspector 7,190 7,549 7,927 8,323 8,739 Senior Librarian 6,647 6,979 7,328 7,695 8,079
Senior Librarian Assistant 5,375 5,643 5,926 6,222 6,533 Senior Library Clerk 3,983 4,182 4,391 4,611 4,841
Senior Library Page 3,186 3,345 3,512
Senior Library Technician 4,891 5,135 5,392 5,662 5,945 Senior Office Assistant 4,381 4,600 4,830 5,072 5,325
Senior Office Assistant - CDBG 4,819 5,060 5,313 5,579 5,858 Senior Public Works Inspector 7,190 7,549 7,927 8,323 8,739 Steno Clerk 4,362 4,581 4,810 5,050 5,303
Supervising Librarian 6,647 6,979 7,328 7,695 8,079
Supervisor-Technical & Circulation Svcs. 7,312 7,678 8,062 8,465 8,888

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RESOLUTION NO. 2024-5908

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, RELATING TO THE CLASSIFICATION,
COMPENSATION AND TERMS OF EMPLOYMENT OF MIDMANAGEMENT EMPLOYEES AND RESCINDING RESOLUTION 2021-5774
WHEREAS, the City management and employee representatives have met and conferred in good faith to reach an agreement to provide certain classes of the City’s employees with salary increases and other benefits pursuant to Government Code Section 3500 et seq.; and
WHEREAS, the City desires to rescind Resolution No. 2021-5774 and adopt Resolution No. 2024-5908; and
WHEREAS, the City desires to approve the negotiated Memorandum of Understanding (Attachment B) with the Mid-Management Employees of the City of Yorba Linda represented by the City Employees Associates which provides for certain salary increases to its employees as provided in the Memorandum of Understanding dated July 1, 2024 to June 30, 2027; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yorba Linda as follows:

Section 1. Classification and compensation language previously presented in the Resolutions has been placed in the Memorandum of Understanding. The Memorandum of Understanding will be the governing document for classification and compensation for MidManagement employees represented through the bargaining unit.

Section 2. Except as otherwise specified to the contrary in this Resolution of the Memorandum of Understanding, all provisions shall be effective as of July 1, 2024, pursuant to Minute Order action of the City Council.

Section 30 – Rescind Previous Resolution: Resolution No. 2021-5774 is hereby rescinded in its entirety.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 6th day of August, 2024. ______________________________

TARA CAMPBELL, MAYOR

CITY OF YORBA LINDA

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RESOLUTION NO. 2024-5908
PAGE NO. 2
ATTEST:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
______________________________

CITY ATTORNEY

STATE OF CALIFORNIA )
ss. COUNTY OF ORANGE )
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 6th day of August, 2024, and was carried by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

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ATTACHMENT B

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF YORBA LINDA
and

THE YORBA LINDA MID-MANAGEMENT ASSOCIATION
JULY 1, 2024 TO JUNE 30, 2027

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TABLE OF CONTENTS
PREMABLE 3
ARTICLE I REPRESENTATION UNIT 3
ARTICLE II BASIC COMPENSATION 4
ARTICLE III COMPENSATION 7
ARTICLE IV RETIREMENT 8
ARTICLE V MEDICAL/HEALTH AND LIFE INSURANCE 11
ARTICLE VI DENTAL AND VISION INSURANCE/EMPLOYEE ASSISTANCE 13 ARTICLE VII SECTION 125 PLAN 14
ARTICLE VIII DISABILITY INSURANCE 14
ARTICLE IX 9/80 WORK SCHEDULE 15
ARTICLE X VACATION LEAVE 15
ARTICLE XI SICK LEAVE 16
ARTICLE XI MID MANAGEMENT ANNUAL LEAVE 17
ARTICLE XIII PERSONAL NECESSITY LEAVE 18
ARTICLE XIV INDUSTRIAL SICK LEAVE 18
ARTICLE XV SUBPOENAED ABSENCE 19
ARTICLE XVI JURY DUTY 19
ARTICLE XVII LEAVE OF ABSENCE WITHOUT PAY 19
ARTICLE XVIII MILITARY LEAVE OF ABSENCE 19
ARTICLE XIX CATASTROPHIC LEAVE 20
ARTICLE XX EXEMPT POSITIONS 20
ARTICLE XXI ADMINISTRATIVE LEAVE 21
ARTICLE XXII HOLIDAY LEAVE 21
ARTICLE XXIII BEREAVEMENT LEAVE 22
ARTICLE XXIV GOLDEN HANDSHAKE 23
ARTICLE XXV MISCELLANEOUS PROVISIONS 23
ARTICLE XXVI AVOIDANCE OF INEQUITIES 25
ARTICLE XXVII NONDISCRIMINATION 25
ARTICLE XXVIII SEVERABILITY 25
ARTICLE XXIX EXISTING CONDITIONS OF EMPLOYMENT 25
ARTICLE XXX BILINGUAL PAY 26
ARTICLE XXXI DEFERRED COMPENSATION 26
ARTICLE XXXII CONFIDENTIAL EMPLOYEES 26
ARTICLE XXXIII ME TOO CLAUSE 26
ARTICLE XXX LABOR/MANAGEMENT COMMITTEE 26
ARTICLE XXXI APPROVAL 27
ARTICLE XXXII TERM OF MEMORANDUM OF UNDERSTANDING 27

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MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF YORBA LINDA
(hereinafter called “City”)
and

THE YORBA LINDA MID-MANAGEMENT ASSOCIATION
(hereinafter called the “Association”)

NOW, THEREFORE, this Memorandum of Understanding is made to become effective July 1, 2024 and it is agreed as follows:

ARTICLE I

REPRESENTATION UNIT
It is recognized that the Yorba Linda Mid-Management Association is the employee organization which has the right to meet and confer in good faith with the City on behalf of the midPage 274 of 477

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management employees of the City of Yorba Linda whose classifications are listed in Exhibit "A" of this agreement.

The City shall provide bulletin boards or space on existing bulletin boards at all City facilities.

Such bulletin boards are to be available for the purpose of posting notices pertaining to Association business only.

ARTICLE II

BASIC COMPENSATION
There is hereby established a basic plan of classification, compensation and terms of employment for all mid-management employees of the City of Yorba Linda who are now or will in the future be employed in any of the classifications of employment listed in Exhibit "A".

B. Every employee in a regular, permanent, competitive service position shall have a salary anniversary date established at the completion of six (6) months of satisfactory service and shall receive a merit increase at this time upon recommendation of the Department Head and approval of the City Manager. In the event a mid-management employee is hired at the third step (C Range) or higher, the salary anniversary date will be established at the completion of one (1) year of satisfactory service and may receive a merit increase at this time upon recommendation of the Department Head and approval of the City Manager.

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C. Salary on Promotion. When an employee is promoted from employment in one classification to employment in a classification allocated to a higher range, he/she shall be advanced to the lowest step in such higher range which will provide not less than a five percent (5%) wage increase, not to exceed top step. A new salary anniversary date shall be established which shall be six (6) months from the effective date of the promotion.

E. Compensation on Transfer. The salary rate and salary anniversary date of an employee who is transferred within the classification shall not change.

1. The written approval of the City Manager shall be required.

2. The employee shall perform all the duties and assume all the responsibilities of a higher class.

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The effective date of the demotion shall become his/her new salary anniversary date, and he/she shall earn eligibility for annual merit increases thereafter.

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M. Lead Pay Employees designated by the City Manager as the lead employee in a particular classification shall receive additional pay in the amount of 5% of their base salary.

ARTICLE III

COMPENSATION
Effective July 1, 2024, each classification in the bargaining unit shall be adjusted by a 6% costof-living adjustment (COLA).

Effective July 1, 2025, each classification in the bargaining unit shall be adjusted by a 6.0% COLA.

Effective July 1, 2026, each classification in the bargaining unit shall be adjusted by a 3.0% COLA.

Classifications and Salary Ranges are included in Exhibit “A”

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ARTICLE IV

PEPRA requires a different benefit plan for CITY employees who are hired on or after January 1, 2013, and who are new employees and new members on or after January 1, 2013.

PEPRA defines a “new employee” to mean either of the following: an employee, including one who is elected or appointed, of a public employer who is employed for the first time by any public employer on or after January 1, 2013, and who was not employed by any other public employer prior to that date. A “new employee” also means an employee, including one who is elected or appointed, of a public employer who is employed for the first time by any public employer on or after January 1, 2013, and who was employed by another public employer prior to that date, but who was not subject to reciprocity.

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more than six months before returning to active membership in that same retirement system with a new employer.

Effective January 1, 2013, public employers that offer a defined benefit plan shall only offer the defined benefit formulas to new members established pursuant to PEPRA.

Effective January 1, 2013, each retirement system that offers a defined benefit plan for nonsafety members who are new members will have a retirement formula that is 2% @ 62.

The “normal cost” is defined as the annual actuarially determined normal cost for the defined benefit plan of an employer expressed as a percentage of payroll.

Once the new member’s contribution rate is established, the employee’s contribution rate can automatically be adjusted upwards or downwards, but only if the normal cost rate increases or decreases by more than 1% of payroll above or below the normal cost rate in effect at the time the employee contribution rate is first established, or the normal cost rate in effect at the time of the last adjustment of the employee contribution rate.

The employee contributions for new members may be more than one-half of the normal cost if the increase has been agreed to through the collective bargaining process subject to several restrictions.

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Classic Members
This retirement plan only applies to classic members within the meaning of PEPRA. Classic members are those individuals employed by CITY prior to January 1, 2013. Classic members are also those individuals who are hired by CITY after January 1, 2013, and who were employed by another public agency prior to January 1, 2013, and who had membership with a previous reciprocal retirement system without a six-month break in service between employment by eligible public agencies.

New Members
This retirement plan only applies to new members hired by CITY on or after January 1, 2013.

The member contribution rate will be half the normal cost of payroll as determined by CalPERS.

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These benefits are not available to limited service employees which include part-time, seasonal or temporary employees.

ARTICLE V

MEDICAL/HEALTH AND LIFE INSURANCE
Life Insurance on Employee. The CITY shall provide life insurance on the life of each regular, permanent, competitive service employee and pay the full annual premium therefore. The face amount of said policies shall be equal to the employee’s annual salary and increasing it to the nearest one-thousand dollars ($1,000) to a maximum of $200,000. Additional life insurance coverage may be purchased if the employee pays for the additional premium. Upon separation from employment, continuation life insurance coverage may be purchased if the employee pays for the additional premium.

Regular, competitive service employees
Effective January 1, 2017, all City employees shall participate in the City’s “cafeteria plan”.

Effective January 1, 2017, the City shall contribute an amount equal to the average family rate of all HMO plans offered through the CALPERS PEMCHA medical program to the “cafeteria plan”.

The above contribution amount will be adjusted on a yearly basis effective January 1st of each year, according to the published CALPERS PEMCHA medical premium rates for Orange County.

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The cafeteria plan is utilized first to pay health insurance premiums; any residual amount may be received as cash. Employees may elect to adjust their contribution to deferred compensation in an amount equal to part or all of any residual amount above the cost of their medical premiums.

Employees that wish to opt-out of medical coverage with the City of Yorba Linda will receive the cash equivalent of the cafeteria amount subject to their hire date. To qualify to waive medical coverage with the City of Yorba Linda, the employee must show proof of coverage in a group health plan such as with a spouse’s employer. Proof of other group coverage must be submitted each year at open enrollment.

Retired, competitive service employees and employees’ dependents Retirees and their dependents are eligible to participate in the CALPERS PEMHCA medical program.

Employees hired before April 1, 2017, will receive the CALPERS minimum required contribution toward their retiree medical. In addition, these employees who have retired from the City of Yorba Linda within 120 days of separation from the City will receive an additional City contribution to a health reimbursement account (HRA) toward their retiree medical in a total amount, including the CALPERS minimum required contribution describe above, up to the average of the two party HMO rates provided on a yearly basis by CALPERS. The above contribution amounts will be adjusted on a yearly basis effective January 1st of each year, according to the published CALPERS PEMCHA premium rates for Orange County. The amount deposited into each retiree’s HRA account will be no greater than the total cost of their monthly health insurance premium, and any remaining funds not utilized for premiums is forfeited to the City.

Employees hired on or after April 1, 2017, will receive the CALPERS minimum required contribution toward their retiree medical.

Part-time permanent employees and employees’ dependents

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Effective January 1, 2015, the City will pay $269.46 per month for the PERS Health Plan premium on behalf of those employees and their dependents who opt to participate in the PERS Health Plan.

ARTICLE VI

DENTAL AND VISION INSURANCE/EMPLOYEE ASSISTANCE PROGRAM The CITY shall provide dental and vision insurance and employee assistance program benefits for the following classes of employees and their dependents. The CITY shall pay the annual cost of the dental, vision and employee assistance program in accordance with the following schedule:

Regular, competitive service employees. The City will provide Dental and Vision Coverage for employees and dependents.

Part-time, permanent employees and employees’ dependents. Access to the City’s dental and vision plan is available to these employees at an annual cost to be determined by the City.

Employees hired on or after April 1, 2017, will not be eligible for Dental or Vision coverage in retirement.

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Part-time, permanent employees hired on or after April 1, 2017, will not be eligible to purchase Dental or Vision coverage in retirement.

Limited service employees - temporary/seasonal. No coverage is provided.

ARTICLE VII
SECTION 125 PLAN
The CITY shall provide a Section 125 Plan for employees to seek reimbursement for expenses relating to medical and dependent care.

ARTICLE VIII

DISABILITY INSURANCE
A. The CITY shall provide a short-term and long-term disability insurance plan for all regular, permanent, competitive service employees. The CITY pays one-hundred (100) percent of the premium for both plans.

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B.2. Long-Term disability.
a. One-hundred eighty (180) day elimination period.
b. At the end of the one-hundred eighty (180) day elimination period, the employee shall receive the lesser of:
i. Sixty (60) percent of pre-disability earnings, to a maximum of (10,000) dollars per month.
ii. Seventy (70) percent of pre-disability earnings, reduced by deductible income to a maximum of (10,000) dollars per month.

ARTICLE IX
9/80 WORK SCHEDULE
The City shall implement a 9/80 work schedule which consists of two consecutive work periods containing the equivalent of nine work days instead of ten in a two week period. Employees will work eight days for nine hours per day and one day for eight hours, for a total of eighty hours in two consecutive work periods. Exceptions to the 9/80 work schedule shall be those employees determined by the City Manager to be necessary in order to maintain specific City operations and service levels.

ARTICLE X

VACATION LEAVE
All regular, permanent, competitive service mid-management employees shall be granted annual vacation leave and shall accrue annual vacation leave on the following basis:
1 - 3 years of service 2 weeks/year or 3.077 hours/pay period 4 - 9 years of service 3 weeks/year or 4.615 hours/pay period 10 + years of service 4 weeks/year or 6.154 hours/pay period Part-time regular, permanent competitive service employees shall accrue vacation time on a pro-rata basis based on the full-time equivalent level of their position (e.g. 0.75 or 0.50).

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In order to be eligible for the yearly buyback, an employee must utilize a minimum of forty (40) hours of vacation during the fiscal year in which the buyback is requested.

All regular Mid-Management employees who elect Mid-Management Annual leave under ARTICLE XII, and all regular Mid-Management employees who are hired after [MONTH] [DAY] [YEAR], shall no longer accrue vacation leave under this article. Instead, these Mid-Management employees will accrue Annual Leave under ARTICLE XII.

ARTICLE XI

Employees hired prior to July 1, 2001, shall be paid upon separation any accumulated, unused sick leave at the rate of 25% after ten (10) years of service; 50% after fifteen (15) years of service; and 75% after twenty (20) years of service. Unused sick leave shall be paid at a rate of 100% only if the employee contributes the entire amount of the funds up to the IRS annual limit into a qualified deferred compensation plan implemented by the City with any funds beyond the IRS annual limit paid at the cash-out rate of 100%.

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Employees hired on or after July 1, 2001, shall not be eligible for the payoff of unused sick leave upon separation as set forth above.

All regular Mid-Management employees who elect Mid-Management Annual leave under ARTICLE XII and all regular Mid-Management employees who are hired after January 1, 2025, shall no longer accrue annual sick leave at a rate of one day (eight hours) per calendar month as of January 1, 2025. Any sick leave balances that remain as of January 1, 2025, in an employee’s accrual bank will be frozen and not increased going forward. This balance may be used for actual sick leave, paid upon separation in accordance with this Article, or converted to service credit upon retirement with CalPERS in accordance with the City’s contract with CalPERS. Employees may choose whether to utilize annual leave or any remaining sick leave when they are sick until they have depleted their sick leave hours accrued prior to January 1, 2025.

ARTICLE XII

MID-MANAGEMENT ANNUAL LEAVE
All regular Mid-Management employees hired on or before January 1, 2025, shall make a onetime irrevocable election by December 1, 2024, to either remain covered under the existing provisions of Article X – Vacation Leave and Article XI – Sick Leave, or to transition to MidManagement Annual Leave under this article.

All regular Mid-Management employees who elect Mid-Management Annual leave under this article and all regular Mid-Management employees who are hired after January 1, 2025, shall be granted annual leave in place of separate sick and vacation leave, which can be used for any purpose including sick leave and vacation leave. Annual leave shall accrue on the following basis:
1 - 4 years of service 4.5 weeks/year or 6.923 hours/pay period 5 + years of service 5.5 weeks/year or 8.462 hours/pay period

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Employees may accumulate an amount up to double their annual accrual. Once the maximum accrual is reached, any excess “carryover” must be approved by the City Manager, otherwise, the employee will be paid for the excess leave on each pay date where the maximum accrual amount is exceeded until such time as the leave balance drops below the maximum accrual.

Any unused annual leave time above one-half of the employee’s annual accrual may be subject to buyback in June of each year at the employee’s option. The buyback is based on the number of unused annual leave hours requested for buyback multiplied by the employee’s base hourly rate.

ARTICLE XIII

ARTICLE XIV

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eighty (180) calendar days. The one-hundred eighty (180) calendar day period need not be consecutive if the employee's absence is directly traceable to a single accident.

ARTICLE XV

ARTICLE XVI

ARTICLE XVII

LEAVE OF ABSENCE WITHOUT PAY
The City Manager may grant a permanent or probationary employee leave of absence without pay for a period not to exceed three months. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request, and the approval will be in writing. Upon expiration of a regularly approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted. Failure on the part of the employee on leave to report promptly at the expiration of the leave shall be cause for discharge. Failure of the employee to report for work more than five consecutive days after his or her leave of absence has ended shall constitute an automatic resignation by the employee as of the date on which the employee was due to return to work.

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ARTICLE XVIII

ARTICLE XIX

CATASTROPHIC LEAVE
All permanent, competitive service employees may receive catastrophic leave donations from other employees (on a voluntary basis) if the employee has a catastrophic medical condition which will require the employee to be on unpaid leave for at least one month. Provided the employee has exhausted all accrued sick leave, vacation, and compensatory time, a written request for donations shall be submitted to the Department Head. The request must be accompanied by a medical statement from the employee's attending physician who verifies the employee's need for an extended medical leave and must include a brief statement of the nature of the illness or injury and an estimated time the employee will be unable to work. Employees who receive donations under this procedure and who exhaust all donated sick leave may request an additional donation period subject to the aforestated provisions.

ARTICLE XX

EXEMPT POSITIONS
All mid-management/confidential employees included in the provisions of this Resolution shall receive no additional compensation for overtime hours worked. The monthly salary shall be

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considered full compensation for all hours worked, however, administrative leave may be granted when approved by the City Manager for good and sufficient cause. The City Manager shall have the authority to delegate this authority to the Department Head.

Under the Federal Labor Standards Act (FLSA), salaried employees (mid-managers and managers) are classified as exempt employees. However, should there be an implementation of furloughs, exempt employees lose their exempt status during a workweek in which the designated furlough hours take place and therefore will be entitled to overtime pay (if over 40 hours) for overtime worked in that week. Subject to the approval of the City Manager and the following provisions, a Department Head may prescribe reasonable periods of overtime work to meet operational needs of his/her department. Employees shall be compensated for overtime by the payment at the rate of one-and-one-half (1-1/2) times the employee’s normal rate of pay for all hours over forty (40) worked in a seven (7) day work period and at the rate of two (2) times the employee’s normal rate of pay for Sundays and holidays.

ARTICLE XXI

ADMINISTRATIVE LEAVE
All Mid-Management employees are entitled to administrative leave up to 80 hours per fiscal year. Part-time, regular, permanent, competitive service Mid-Management employees shall accrue administrative leave on a pro-rata basis based on the full-time equivalent level of their position (e.g.

0.75 or 0.50). Administrative leave is subject to approval by the Department Head. Unused administrative leave cannot be carried over to the next fiscal year nor can it be bought back.

ARTICLE XXII

HOLIDAYS
The CITY shall recognize the following days as paid holidays for all employees with annual holiday schedules published prior to the start of the calendar year:

New Years Day
Martin Luther King’s Birthday
Lincoln's Birthday (1)

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President’s Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving
Day after Thanksgiving
Christmas Eve
Christmas
New Year’s Eve
(1) Lincoln's Birthday has been changed to the employee's birthday, which may be used at any time during the fiscal year.
(2) Any scheduled holiday that falls on an employee’s scheduled Saturday off will be recognized on Friday, the day before. If that Friday happens to be a scheduled day off, the holiday hours will be converted to floater hours and may be taken at any time during the fiscal year.

Any scheduled holiday that falls on an employee’s scheduled working Saturday will be recognized for that employee on Saturday.
(3) Any scheduled holiday that falls on an employee’s scheduled Sunday off will be recognized on Monday, the day after. If that Monday happens to also be a scheduled day off, the holiday hours will be converted to floater hours and may be taken at any time during the fiscal year.

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ARTICLE XXIII

BEREAVEMENT LEAVE
Upon request, regular, permanent competitive service employees shall receive necessary time off with pay, not to exceed five (5) days in any one (1) instance, to attend to a member of their immediate family who has become critically ill to the point where death is imminent, or to arrange for or attend a funeral of a member of their immediate family. For purposes of this section, immediate family shall mean father, father-in-law, mother, mother-in-law, step-parent, brother, sister, wife, husband, child, grandparent, grandchild, or legal guardian or person that has dependency upon the employee.

ARTICLE XXIV

GOLDEN HANDSHAKE
Should the City plan a reorganization, the City agrees to discuss the implementation of a Golden Handshake with bargaining unit representatives.

ARTICLE XXV

Commercial Transportation Allowance.

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A. Allowances for use of commercial transportation shall be based upon scheduled airline coach rates in regard to all out-of-town travel on CITY business.

C. When air, rail or public transportation is used, expenses necessary for local transportation, such as taxi cab and bus fare, will be allowed whenever such transportation is necessary for the conduct of CITY business after approval by the City Manager.

Out-of-City Travel. Meetings and Convention Expense.

Cell Phone Stipend. In lieu of using a City owned cell phone, employees may receive a monthly stipend in accordance with Administrative Policy No. 76 as it currently exists or may be amended during the period covered by this Resolution.

ARTICLE XXVI

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ARTICLE XXVII

No question posed in any examination, on any application form, or by any appointing power shall be framed so as to attempt to elicit information concerning race, color, sex, age, ancestry, national origin, handicap, political or religious opinions or affiliations of any applicant unless such information is determined by the Personnel Officer to be job-related and a requirement for appointment within the guidelines established by the State and Federal Government.

ARTICLE XXVIII

ARTICLE XXIX

EXISTING CONDITIONS OF EMPLOYMENT
Except as provided herein, all other existing terms and conditions of employment affecting the ASSOCIATION and its members shall remain in full force and effect.

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ARTICLE XXX

BILINGUAL PAY
Employees designated by the City Manager shall receive bilingual pay in the amount of $40 per pay period.

ARTICLE XXXI

ARTICLE XXXII

CONFIDENTIAL EMPLOYEES
Certain mid-management employee classifications are deemed to be confidential in nature due to their access to confidential information related to employee negotiations and therefore would be precluded from representing the bargaining unit during employee negotiations. The classifications deemed to be confidential are the Financial Services Manager and the person assigned to the union negotiation process.

ARTICLE XXXIII

ME TOO CLAUSE
Any additional salary or deferred compensation increase beyond the items listed above given to one of the other bargaining units during the term of this agreement, would be made available to the Mid-Management bargaining unit. This does not include any other bargaining unit selecting a different option from the City’s final counteroffer for salary increase / deferred compensation, or the Annual Leave offer accepted by the Management bargaining unit.

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ARTICLE XXXIV

ARTICLE XXXV

APPROVAL
It is the understanding of the CITY and the ASSOCIATION the Memorandum of Agreement has no force or effect whatsoever unless and until signed by the Personnel Officer of the City of Yorba Linda and the principal representatives of the ASSOCIATION and ratified by the City Council.

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ARTICLE XXXVI

TERM OF MEMORANDUM OF UNDERSTANDING
This Memorandum of Agreement shall be in effect, commencing July 1, 2024, and ending at midnight on June 30, 2027. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Agreement this ____day of __________, 2024.

CITY OF YORBA LINDA YORBA LINDA MID-MANAGEMENT ASSOC.

By _________________________________ By_________________________________ Signature Signature
________________________________ _________________________________ Printed Name Printed Name

_________________________________ _________________________________ Title Title

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EXHIBIT A

MID-MANAGEMENT STEP A STEP B STEP C STEP D STEP E
Adult Services Manager 6,647 6,979 7,328 7,695 8,079
Assessment District Manager 9,369 9,837 10,329 10,846 11,388 Assistant City Engineer 12,864 13,507 14,182 14,891 15,636 Assistant Library Director 10,165 10,673 11,207 11,767 12,356 Assistant to the City Manager 10,201 10,712 11,247 11,809 12,400 Borrower Services Manager* 7,971 8,369 8,787 9,227 9,688 Building Official 12,115 12,721 13,357 14,025 14,726
Children Services Manager 7,971 8,369 8,787 9,227 9,688 City Clerk 11,253 11,816 12,406 13,027 13,678
Communications Coordinator 6,160 6,468 6,792 7,131 7,488 Deputy Public Works Director/Assistant City Engineer 13,507 14,182 14,891 15,636 16,417 Executive Assistant 6,595 6,925 7,271 7,635 8,017
Financial Services Manager 11,421 11,992 12,592 13,221 13,882 Economic Development Manager 11,206 11,767 12,355 12,973 13,621 Human Resources Manager 11,421 11,992 12,592 13,221 13,882 Human Resources & Risk Manager 12,563 13,191 13,851 14,543 15,271 Information & Technology Services Manager 10,494 11,019 11,570 12,149 12,756 IT Manager 13,081 13,735 14,422 15,143 15,900
Management Analyst 7,350 7,717 8,103 8,508 8,933
Parks & Facilities Manager 9,185 9,644 10,127 10,633 11,165 Parks & Facilities Maintenance Superintendent 11,179 11,737 12,324 12,941 13,588 Parks & Recreation Superintendent 11,179 11,737 12,324 12,941 13,588 Principal Civil Engineer 11,249 11,811 12,402 13,022 13,673 Principal Management Analyst 10,201 10,712 11,247 11,809 12,400 Principal Planner 11,107 11,663 12,246 12,858 13,501
Planning Manager 11,605 12,185 12,795 13,434 14,106
Public Information Officer 10,091 10,596 11,125 11,682 12,266 Public Works Superintendent 11,737 12,324 12,941 13,588 14,267 Recreation Superintendent 10,494 11,019 11,570 12,149 12,756 Senior Civil Engineer 10,226 10,738 11,274 11,838 12,430 Senior Community Preservation Officer 8,357 8,774 9,213 9,674 10,157 Senior Management Analyst 8,017 8,418 8,839 9,281 9,745 Senior Planner 8,742 9,180 9,639 10,121 10,627
Traffic Engineering Manager 12,231 12,843 13,485 14,159 14,867

CITY OF YORBA LINDA
2024/25 SALARY SCHEDULE
EFFECTIVE: JULY 1, 2024

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RESOLUTION NO. 2024-5909

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, RELATING TO THE CLASSIFICATION,

COMPENSATION AND TERMS OF EMPLOYMENT OF

MANAGEMENT EMPLOYEES AND RESCINDING
RESOLUTION 2021-5775
WHEREAS, the City desires to provide its Management employees with certain salary increases and other benefits effective for the term of July 1, 2024 to June 30, 2027; and
WHEREAS, the City desires to rescind Resolution No. 2021-5775 and adopt Resolution No. 2024-5909; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yorba Linda as follows:

Section 1 – Basic Compensation: There is hereby established a basic plan of classification, compensation and terms of employment for all management employees of the City of Yorba Linda who are now or will in the future be employed in any of the classifications of employment listed in Exhibit "A".

Each range includes five (5) steps or rates of pay and shall be interpreted and applied as follows:

B. Every employee in an at-will management position shall have a salary anniversary date established at the completion of six (6) months of satisfactory service and shall receive a merit increase at this time upon approval of the City Manager. In the event a management employee is hired at the third step (C Range) or higher, the salary anniversary date will be established at the completion of one (1) year of satisfactory service and may receive a merit increase at this time upon approval of the City Manager.

C. Compensation on Transfer. The salary rate and salary anniversary date of an employee who is transferred within the classification shall not change.

D. Change in Class Salary Range. If a classification is allocated to a different salary range, an employee in a position in that classification shall be compensated at the same numbered step in the new range as he/she was receiving in the previous range and his/her salary anniversary date shall not change.

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RESOLUTION NO. 2024-5909
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E. Salary on Demotion. An employee who is demoted shall have his/her salary rate reduced to the nearest lower salary rate of the classification of the position to which he/she is demoted. The effective date of the demotion shall become his/her new salary anniversary date, and he/she shall earn eligibility for annual merit increases thereafter.

F. Length of Service Required when Advancement Denied. When an employee has not been approved for advancement to the next higher step, he/she may be reconsidered for such advancement at any subsequent time.

G. Pay Periods. All employees shall be paid on a biweekly basis. The basic biweekly salary shall be computed by multiplying the monthly salary by twelve (12) months and dividing the resultant product by twenty-six (26) pay periods. The basic hourly rate for all employees with a scheduled forty (40) hour work week shall be computed by dividing the biweekly salary by eighty (80) hours.

H. Work Week and Work Day. The regular work week for all employees shall be forty (40) hours.

Section 2 – Compensation:

Effective July 1, 2024, each classification in the management unit shall be adjusted by a

6.0% cost-of-living adjustment (COLA).

Effective July 1, 2025, each classification in the management unit shall be adjusted by a

3.0% COLA.

Effective July 1, 2026, each classification in the management unit shall be adjusted by a

3.0% COLA.

Classifications and Salary Ranges are included in Exhibit “A”.

Section 2.1 – Bilingual Pay: Employees designated by the City Manager shall receive bilingual pay in the amount of $40 per pay period.

Section 3 – Retirement: Employment with CITY is subject to the California Public Employees’ Pension Reform Act of 2013 (hereinafter “PEPRA”) and the California Public Employees Retirement System (hereinafter “CalPERS”).

Pursuant to PEPRA, individuals who were previously employed by CITY, and who become reemployed by CITY after January 1, 2013, shall be subject to the retirement

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RESOLUTION NO. 2024-5909
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plan that was in effect at the time they separated from the employment of CITY, regardless of the length in the break of service.

PEPRA requires a different benefit plan for CITY employees who are hired on or after January 1, 2013, and who are new employees and new members on or after January 1, 2013.

Effective January 1, 2013, public employers that offer a defined benefit plan shall only offer the defined benefit formulas to new members established pursuant to PEPRA.

Effective January 1, 2013, each retirement system that offers a defined benefit plan for non-safety members who are new members will have a retirement formula that is 2% @

62. Equal sharing of normal costs between public employers and public employees shall be the standard for new members. The standard shall be that employees pay at least 50% of normal costs. Employers cannot pay any of the required employee contribution for new employees who are also new members.

The “normal cost” is defined as the annual actuarially determined normal cost for the defined benefit plan of an employer expressed as a percentage of payroll.

The employee contributions for new members may be more than one-half of the normal cost if the increase has been agreed to through the collective bargaining process subject to several restrictions.

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RESOLUTION NO. 2024-5909
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Final compensation for new members shall now mean the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months immediately preceding his or her retirement. The member also has the option of designating an alternative 36 consecutive month period during the member’s applicable service.

Classic Members
This retirement plan only applies to classic members within the meaning of PEPRA.

Classic members are those individuals employed by CITY prior to January 1, 2013.

Classic members are also those individuals who are hired by CITY after January 1, 2013, and who were employed by another public agency prior to January 1, 2013, and who had membership with a previous reciprocal retirement system without a six month break in service between employment by eligible public agencies.

Effective July 2016, classic members shall contribute a total of 7.0% PERS contribution towards the employer’s share, and CITY shall contribute the balance of the employee’s and employer’s share of the contribution to PERS pursuant to Government Section Code 20516(a).

New Members
This retirement plan only applies to new members hired by CITY on or after January 1, 2013.

The member contribution rate will be half the normal cost of payroll as determined by CalPERS. - The member contribution rate may change over time if the total normal cost rate for new miscellaneous members fluctuates by more than 1% of payroll. The total normal cost rate will be impacted over time by the actual demographics of CITY’s miscellaneous plan and the actuarial assumptions used in the funding of the retirement benefits. The member rate will be reviewed once a year by CalPERS when the actuarial valuation of CITY’s miscellaneous plan is performed.

CITY shall promptly notify the affected member of any change in the member contribution rate imposed by CalPERS during the term of this Resolution. Any such change in the member contribution rate is mandatory, and it shall be implemented by City in accordance with the CalPERS notification. Any change in the member contribution rate during the term of this Resolution imposed by CalPERS shall not be subject to the meet and confer

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RESOLUTION NO. 2024-5909
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process, and the parties specifically agree that changes in the member contribution rate for new members are outside the scope of representation.

Final compensation for new members shall now mean the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months, immediately preceding his or her retirement. The member also has the option of designating an alternative 36 consecutive month period during the member’s applicable service.

These benefits are not available to limited service employees which include part-time, seasonal or temporary employees.

Section 4 – Medical/Health and Life Insurance:

Life Insurance on Employee. The CITY shall provide life insurance on the life of each regular management employee and pay the full annual premium therefore. The face amount of said policies shall be equal to the employee’s annual salary and increasing it to the nearest one-thousand dollars ($1,000) to a maximum of $200,000. Additional life insurance coverage may be purchased if the employee pays for the additional premium.

Upon separation from employment, continuation life insurance coverage may be purchased if the employee pays for the additional premium.

Regular employees
Effective January 1, 2017, all City employees shall participate in the City’s “cafeteria plan”.

Effective January 1, 2017, the City shall contribute an amount equal to the average family rate of all HMO plans offered through the CALPERS PEMCHA medical program to the “cafeteria plan”. The above contribution amount will be adjusted on a yearly basis effective January 1st of each year, according to the published CALPERS PEMCHA medical premium rates for Orange County.

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RESOLUTION NO. 2024-5909
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Employees that wish to opt-out of medical coverage with the City of Yorba Linda will receive the cash equivalent of the cafeteria amount subject to their hire date. To qualify to waive medical coverage with the City of Yorba Linda, the employee must show proof of coverage in a group health plan such as with a spouse’s employer. Proof of other group coverage must be submitted each year at open enrollment.

Retired employees and employees’ dependents
Retirees and their dependents are eligible to participate in the CALPERS PEMHCA medical program.

Employees hired before April 1, 2017, will receive the CALPERS minimum required contribution toward their retiree medical. In addition, these employees who have retired from a retirement system the City participates in within 120 days of separation from the City will receive an additional City contribution to a health reimbursement account (HRA) toward their retiree medical in a total amount, including the CALPERS minimum required contribution describe above, up to the average of the two party HMO rates provided on a yearly basis by CALPERS. The above contribution amounts will be adjusted on a yearly basis effective January 1st of each year, according to the published CALPERS PEMCHA premium rates for Orange County. The amount deposited into each retiree’s HRA account will be no greater than the total cost of their monthly health insurance premium, and any remaining funds not utilized for premiums is forfeited to the City.

Employees hired on or after April 1, 2017, will receive the CALPERS minimum required contribution toward their retiree medical.

Section 5 – Dental and Vision Insurance/Employee Assistance Program: The CITY shall provide dental and vision insurance and employee assistance program benefits for the following classes of employees and their dependents. The CITY shall pay - the annual cost of the dental, vision and employee assistance program in accordance with the following schedule:

Regular employees. The City will provide Dental and Vision Coverage for employees and dependents.

Retired employees and employees’ dependents. For employees hired prior to April 1, 2017, the City will provide Dental and Vision Coverage in retirement. Coverage is also provided to eligible dependents.

Employees hired on or after April 1, 2017, will not be eligible for Dental or Vision coverage in retirement.

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RESOLUTION NO. 2024-5909
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Section 6 – Section 125 Plan: The CITY shall provide a Section 125 Plan for employees to seek reimbursement for expenses relating to medical and dependent care.

Section 7 – Disability Insurance: The City shall provide a short-term and long-term disability insurance plan for all regular management employees. The City pays one-hundred (100) percent of the premium for both plans.

Short-term disability

1. Fourteen (14) day elimination period. (First day coverage if hospitalized due to an accident.) Employees shall be required to use sick leave during the elimination period. Use of vacation accrual at the end of sick leave shall be at the option of the employees.

2. At the end of the fourteen (14) day elimination period the employee shall receive fifty (50) percent of his/her salary for the remainder of the short-term disability period, to a maximum of one-thousand (1,000) dollars per week.

Long-Term disability

1. One-hundred eighty (180) day elimination period.

2. At the end of the one-hundred eighty (180) day elimination period, the employee shall receive the lesser of:
a. Sixty (60) percent of pre-disability earnings, to a maximum of (10,000) dollars per month.
b. Seventy (70) percent of pre-disability earnings, reduced by deductible income to a maximum of (10,000) dollars per month.

Section 8 – 9/80 Work Schedule: The City shall implement a 9/80 work schedule which consists of two consecutive work periods containing the equivalent of nine work days instead of ten in a two week period. Employees will work eight days for nine hours per day and one day for eight hours, for a total of eighty hours in two consecutive work periods. Exceptions to the 9/80 work schedule shall be those employees determined by the City Manager to be necessary in order to maintain specific City operations and service levels.

Section 9 – Annual Leave: All regular management employees shall be granted annual leave which can be used for any purpose including sick leave and vacation leave. Annual leave shall accrue on the following basis:
1 - 4 years of service 4.5 weeks/year or 6.923 hours/pay period 5 + years of service 5.5 weeks/year or 8.462 hours/pay period

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RESOLUTION NO. 2024-5909
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Employees may accumulate an amount up to double their annual accrual. Once the maximum accrual is reached, any excess “carryover” must be approved by the City Manager, otherwise, the employee will be paid for the excess leave on each pay date where the maximum accrual amount is exceeded until such time as the leave balance drops below the maximum accrual.

Section 10 – Sick Leave: All regular management employees shall no longer accrue annual sick leave at a rate of one day (eight hours) per calendar month as of October 1, 2018. Instead, management employees will receive an additional 60 hours of annual leave which is included in the accrual amounts in Section 9. Any sick leave balances that remain as of October 1, 2018 in an employees’ accrual bank will be frozen and not increased going forward. This balance may be used for actual sick leave or converted to service credit upon retirement with CalPERS in accordance with the City’s contract with CalPERS. Employees may choose whether to utilize annual leave or any remaining sick leave when they are sick until they have depleted their sick leave hours accrued prior to October 1, 2018.

Management employees hired prior to July 1, 2001, shall have the option, at any time, to cash out any portion of their unused frozen sick leave at the rate of 25% after ten (10) years of service; 50% after fifteen (15) years of service; and 75% after twenty (20) years of service. Unused sick leave shall be paid at a rate of 100% only if the employee contributes the entire amount of the funds into a Retirement Health Savings Plan implemented by the City.

Employees hired on or after July 1, 2001 shall not be eligible for the payoff of unused sick leave upon separation as set forth above.

Section 11 – Personal Necessity Leave: All regular management employees participating in a 9/80 Plan shall not be granted personal necessity leave. All regular management employees not participating in a 9/80 Plan shall be granted personal necessity leave not to exceed five (5) days per fiscal year. Personal necessity leave shall be used for emergency or unforeseen necessities only. Personal necessity leave shall be deducted from accumulated sick leave so long as the employee has a balance of available sick leave hours accrued prior to October 1, 2018. Otherwise, personal necessity leave shall be deducted from accumulated annual leave.

Section 12 – Industrial Sick Leave: Whenever any management employee is absent on account of injuries arising out of and in the course of his or her employment, such employee shall receive full compensation during the first three (3) days of such absence.

Thereafter compensation shall be paid in accordance with and under the provisions of the Workers' Compensation Insurance and Safety Act of the State of California. The CITY shall, in addition thereto, compensate for any such employee who is still absent from duty

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RESOLUTION NO. 2024-5909
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after the third day, an amount equal to the difference between the amount said employee receives from the Workers' Compensation Insurance Fund and the amount of his or her regular compensation. The employee is justly entitled to receive the maximum allowance as provided herein. This additional compensation shall be for a maximum period of one-hundred eighty (180) calendar days. The one-hundred eighty (180) calendar day period need not be consecutive if the employee's absence is directly traceable to a single accident.

Section 13 – Subpoenaed Absence: A regular management employee who is called to answer a subpoena as a witness for court appearances during the employee's work hours shall be compensated at his or her regular rate of pay for all hours of absence from work due to answering the subpoena on CITY business provided the employee shows proof of such subpoena and deposits witness fees received for such hours, exclusive of mileage, with the City Treasurer. Fees for answering a subpoena as a witness during hours other than regularly scheduled working hours may be retained by the employee.

Section 14 – Jury Duty: An employee summoned to and serving on jury duty shall inform the City Manager and may be absent from duty with full pay. Except for travel expense, the employee shall receive the difference between his full regular pay and the pay received for jury duty.

Section 15 – Leave of Absence Without Pay: The City Manager may grant a management employee leave of absence without pay for a period not to exceed three months. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request, and the approval will be in writing. Upon expiration of a regularly approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted. Failure on the part of the employee on leave to report promptly at the expiration of the leave shall be cause for discharge. Failure of the employee to report for work more than five consecutive days after his or her leave of absence has ended shall constitute an automatic resignation by the employee as of the date on which the employee was due to return to work.

Section 16 – Military Leave of Absence: All management employees are entitled to military leave of absence. An employee who has been in the service of the Armed Services of the United States (Army, Navy, Marine Corps or Air Force) for active reserve duty, shall be allowed a paid leave of absence for a period not to exceed thirty (30) days in any calendar year, provided that the period of active reserve duty does not exceed one hundred eighty (180) calendar days. An employee required to perform active duty with such organizations for a period in excess of that for which compensation may be paid hereunder may be granted a leave of absence without pay. CITY service shall not be deemed to be interrupted by such absence. An employee's employment status, with reference to promotion or continuance in office, employment, reappointment to office or re-employment, shall not be prejudiced directly or indirectly by reason of any absence from duty on account of actual service in the military forces of the United States.

Section 17 – Catastrophic Leave: All management employees may receive catastrophic

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RESOLUTION NO. 2024-5909
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leave donations from other employees (on a voluntary basis) if the employee has a catastrophic medical condition which will require the employee to be on unpaid leave for at least one month. Provided the employee has exhausted all accrued sick leave and annual leave, a written request for donations shall be submitted to the City Manager. The request must be accompanied by a medical statement from the employee's attending physician who verifies the employee's need for an extended medical leave and must include a brief statement of the nature of the illness or injury and an estimated time the employee will be unable to work. Employees who receive donations under this procedure and who exhausted all donated sick leave or annual leave may request an additional donation period subject to the aforestated provisions.

Section 18 – Bereavement Leave: Upon request, regular management employees shall receive necessary time off with pay, not to exceed five (5) days in any one (1) instance, to attend to a member of their immediate family who has become critically ill to the point where death is imminent, or to arrange for or attend a funeral of a member of their immediate family. For purposes of this section, immediate family shall mean father, father-in-law, mother, mother-in-law, step-parent, brother, sister, wife, husband, child, grandparent, grandchild, or legal guardian or person that has dependency upon the employee.

Section 19 – Administrative Leave: All management employees are entitled to administrative leave up to 100 hours per fiscal year. Administrative leave is subject to approval by the City Manager. Unused administrative leave cannot be carried over to the next fiscal year nor can it be bought back.

Section 20 – Holidays: The CITY shall recognize the following days as paid holidays for all employees with annual holiday schedules published prior to the start of the calendar year:

New Years Day
Martin Luther King’s Birthday
Lincoln's Birthday (1)
President’s Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving
Day after Thanksgiving
Christmas Eve
Christmas
New Year’s Eve
(1) Lincoln's Birthday has been changed to the employee's birthday, which may be used at any time during the fiscal year.

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RESOLUTION NO. 2024-5909
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(2) Any scheduled holiday falls that on a Saturday will be recognized on Friday, the day before. If that Friday happens to be a scheduled day off, the holiday hours will be converted to floater hours and may be taken at any time during the fiscal year. (3) Any scheduled holiday that falls on a Sunday will be recognized on Monday, the day after. If that Monday happens to also be a scheduled day off, the holiday hours will be converted to floater hours and may be taken at any time during the fiscal year.

Section 21 – Miscellaneous Provisions:

Automobile Allowance/Use Reimbursement. The City Manager may authorize automobile allowance to management employees ranging from zero (0) to five-hundred (500) dollars per month (as of October 2016) as deemed appropriate. Management employees not receiving an automobile allowance may claim automobile reimbursement for the use of his/her own private automobile in the course of his/her CITY employment or on CITY business. Such use of a private vehicle shall only be when the CITY vehicle is not available for transportation. Reimbursement at a rate consistent with the Internal Revenue Service standard may be approved for use of private vehicles on CITY business within the CITY or within a radius of sixty (60) miles there from. The City Manager may authorize, annually, increases in the automobile allowance in conjunction with the Consumer Price Index effective July 1st of each year.

Commercial Transportation Allowance.

A. Allowances for use of commercial transportation shall be based upon scheduled airline coach rates in regard to all out-of-town travel on CITY business.

Out-of-City Travel. Meetings and Convention Expense. If, in the judgment of the City Manager, the estimated expenses of the approved contemplated travel, lodging and other related expenses pertinent to said trip are too high and would create a hardship for the employees to finance initially and the employees do not have City-issued purchasing cards, then the City Manager may authorize an advance payment of the estimated amount to the employee. Upon return of the employee from said trip, he/she shall submit an itemized statement as to his/her actual expenses. Final adjustments shall be made to the favor of the employee or the CITY, whichever the case may be. The cost of lodging and meals shall be at a reasonable rate, appropriate to the purpose of the trip, and in

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RESOLUTION NO. 2024-5909
PAGE NO. 12
compliance with City Policy, as it currently exists or may be amended during the period covered by this Resolution.

Cell Phone Stipend. In lieu of using a City owned cell phone, management employees will receive a monthly stipend as a “frequent user” in accordance with City policy, as it currently exists or may be amended during the period covered by this Resolution.

Section 22 – Exempt Positions: All management employees included in the provisions of this Resolution shall receive no additional compensation for overtime hours worked. The monthly salary shall be considered full compensation for all hours worked, however, administrative leave may be granted when approved by the City Manager for good and sufficient cause.

Under the Federal Labor Standards Act (FLSA), salaried employees (mid-managers and managers) are classified as exempt employees. However, should there be an implementation of furloughs, exempt employees lose their exempt status during a workweek in which the designated furlough hours take place and therefore will be entitled to overtime pay (if over 40 hours) for overtime worked in that week. Subject to the approval of the City Manager and the following provisions, overtime may be prescribed for reasonable periods of time to meet operational needs of the organization. Employees shall be compensated for overtime by the payment at the rate of one-and-one-half (1-1/2) times the employee’s normal rate of pay for all hours over forty (40) worked in a seven (7) day work period and at the rate of two (2) times the employee’s normal rate of pay for Sundays and holidays.

Section 23 – Separation: Persons occupying management positions serve at the will and pleasure of the City Manager and may be discharged form City employment by the City Manager without proof of cause or other justification and without right of appeal or hearing.

As a result of discharge without proof or cause or other justification, a management employee shall be entitled to the following Separation Compensation which shall be made as a lump sum payment:

A. Three (3) months pay at an amount equal to his or her hourly rate on the date of discharge.

B. An amount equal to three (3) months worth of health insurance premiums paid for the management employee to CALPERS plus the equivalent of three (3) months worth of dental/vision insurance premiums.

Discharged management employees shall also be entitled to an additional one (1) month of Separation Compensation for each five (5) full years of service rendered to the City of Yorba Linda regardless of previously held job classification(s). In no event, however, shall Separation Compensation exceed six (6) months.

Management employees must serve one (1) full year prior to being discharged to be eligible for Separation Compensation. Any Separation Compensation payment received under this

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RESOLUTION NO. 2024-5909
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Section 23 shall be the employee’s sole and exclusive remedy for any and all claims for damages related to his/her employment. Employee agrees that as a condition to receiving the Separation Compensation payment, he/she shall execute a letter waiving all claims against the City, its officials and employees.

Section 24 – Avoidance of Inequities: Subject to City Council approval, the City Manager may authorize special adjustment to avoid or eliminate inequities resulting from the strict application of any provisions of this Resolution.

Section 25 – Administrative Regulations: The City Manager is authorized to issue written administrative personnel regulations designed to augment or clarify the provisions of this Resolution.

Section 26 – Nondiscrimination: No person in a management position or applying for one, shall be employed, promoted or discharged, or in any way favored or discriminated against because of political opinions or affiliations or because of race, color, sex, age, ancestry, national origin, handicap or religious belief.

No question posed in any examination, on any application form, or by any appointing power shall be framed so as to attempt to elicit information concerning race, color, sex, age, ancestry, national origin, handicap, political or religious opinions or affiliations of any applicant unless such information is determined by the Personnel Officer to be job related and a requirement for appointment within the guidelines established by the State and Federal Government.

Section 27 – Severability: In the event that any provisions of this Resolution are declared invalid by any court of competent jurisdiction, such decision shall not invalidate the entire Resolution, it being the express understanding of the parties hereto that all other provisions are not declared invalid shall remain in full force and effect.

Section 28 – Existing Conditions of Employment: Except as provided herein, all other existing terms and conditions of employment affecting the management employees shall remain in full force and effect.

Section 29 – Effective Date: Except as otherwise specified to the contrary in this Resolution, all provisions shall be effective as of July 1, 2024 pursuant to Minute Order action of the City Council on August 6, 2024.

Section 30 – Rescind Previous Resolution: Resolution No. 2021-5775 is hereby rescinded in its entirety.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 6th day of August, 2024. ______________________________

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RESOLUTION NO. 2024-5909
PAGE NO. 14

TARA CAMPBELL, MAYOR

CITY OF YORBA LINDA
ATTEST:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
______________________________

CITY ATTORNEY

STATE OF CALIFORNIA )
ss. COUNTY OF ORANGE )
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 6th of August, 2024, and was carried by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

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EXHIBIT A

MANAGEMENT STEP A STEP B STEP C STEP D STEP E
Administrative Services Director 13,523 14,199 14,909 15,654 16,437 Assistant City Manager 16,344 17,161 18,019 18,920 19,866 City Manager 1 25,547 --- --- --- ---
Community Development Director 14,671 15,404 16,174 16,983 17,832 Finance Director 14,820 15,561 16,339 17,156 18,014
Library Director 13,523 14,199 14,909 15,654 16,437
Parks and Recreation Director 14,047 14,750 15,487 16,262 17,075 Public Works Director/City Engineer 15,479 16,253 17,065 17,919 18,814 1 Contract salary effective July 1, 2024

CITY OF YORBA LINDA
2024/25 SALARY SCHEDULE
EFFECTIVE: JULY 1, 2024

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AUGUST 6, 2024 CITY COUNCIL MEETING
CONSENT CALENDAR ITEM NO. 9 – CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT FOR MISCELLANEOUS, MIDMANAGEMENT AND MANAGEMENT EMPLOYEES

REVISIONS TO MISC EMPLOYEE SALARY SCHEDULE, MID-MANAGEMENT MOU,

AND MANAGEMENT SALARY SCHEDULE RECEIVED AFTER POSTING OF THE AGENDA

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EXHIBIT A

CITY OF YORBA LINDA
2024/25 SALARY SCHEDULE
EFFECTIVE: JULY 1, 2024

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EXHIBIT A

MISCELLANEOUS STEP A STEP B STEP C STEP D STEP E

CITY OF YORBA LINDA
2024/25 SALARY SCHEDULE
EFFECTIVE: JULY 1, 2024
Library Clerk Typist II 3,983 4,182 4,391 4,611 4,841
Library Technician 4,530 4,756 4,994 5,244 5,506
Library Graphics Specialist 5,133 5,390 5,659 5,942 6,239 Library Page 3,123 3,280 3,444
Library Technology Specialist 7,312 7,678 8,062 8,465 8,888 Maintenance Contract Administrator 7,689 8,073 8,477 8,901 9,346 Maintenance Worker I 4,342 4,559 4,787 5,026 5,278
Maintenance Worker II 4,885 5,129 5,385 5,654 5,937
Maintenance Worker I (Equipment) 4,342 4,559 4,787 5,026 5,278 Maintenance Worker II (Equipment) 4,885 5,129 5,385 5,654 5,937 Management Assistant 5,668 5,951 6,249 6,561 6,889
Office Assistant I 3,621 3,802 3,992 4,191 4,401
Office Assistant II 3,983 4,182 4,391 4,611 4,841
Park Maintenance Supervisor 7,043 7,395 7,765 8,153 8,560 Payroll Technician 5,781 6,070 6,374 6,692 7,027
Plan Check Engineer 8,658 9,091 9,545 10,023 10,524
Plan Checker 7,661 8,044 8,446 8,869 9,312
Planning Aide 5,307 5,572 5,850 6,143 6,450
Public Works Inspector 6,536 6,863 7,206 7,567 7,945
Recreation Coordinator 5,887 6,182 6,491 6,815 7,156
Recreation Specialist 3,713 3,898 4,093 4,298 4,513
Recreation Specialist 3,936 4,132 4,339 4,556 4,784
Recreation Supervisor 7,175 7,534 7,911 8,306 8,721
Senior Account Clerk 4,956 5,204 5,464 5,737 6,024
Senior Building Inspector 7,327 7,693 8,078 8,482 8,906 Senior Building Permit Technician 6,221 6,532 6,859 7,202 7,562 Senior Landscape Inspector 7,190 7,549 7,927 8,323 8,739 Senior Librarian 6,647 6,979 7,328 7,695 8,079
Senior Librarian Assistant 5,375 5,643 5,926 6,222 6,533 Senior Library Clerk 3,983 4,182 4,391 4,611 4,841
Senior Library Page 3,186 3,345 3,512
Senior Library Technician 4,891 5,135 5,392 5,662 5,945 Senior Office Assistant 4,381 4,600 4,830 5,072 5,325
Senior Office Assistant - CDBG 4,819 5,060 5,313 5,579 5,858 Senior Public Works Inspector 7,190 7,549 7,927 8,323 8,739 Steno Clerk 4,362 4,581 4,810 5,050 5,303
Supervising Librarian 6,647 6,979 7,328 7,695 8,079
Supervisor-Technical & Circulation Svcs. 7,312 7,678 8,062 8,465 8,888

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Page 7 ends

M. Lead Pay Employees designated by the City Manager as the lead employee in a particular classification shall receive additional pay in the amount of 5% of their base salary.

ARTICLE III

COMPENSATION
Effective July 1, 2024, each classification in the bargaining unit shall be adjusted by a 6% costof-living adjustment (COLA).

Effective July 1, 2025, each classification in the bargaining unit shall be adjusted by a 63.0% COLA.

Effective July 1, 2026, each classification in the bargaining unit shall be adjusted by a 3.0% COLA.

Classifications and Salary Ranges are included in Exhibit “A”

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Yorba Linda City CouncilAugust 6, 2024

Yorba Linda City Council
August 6, 2024