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HomeMy WebLinkAboutCC Resolution 26-13428 - Memorandum of Understanding Campbell Peace Officers Association (CPOA)RESOLUTION NO. 26-13428 A RESOLUTION OF THE CITY OF CAMPBELL CITY COUNCIL AMENDING THE COMPENSATION AND WORKING CONDITIONS FOR CLASSIFIED NON- MANAGEMENT EMPLOYEES REPRESENTED BY THE CAMPBELL PEACE OFFICERS' ASSOCIATION (CPOA) WHEREAS, the Campbell Peace Officers' Association (CPOA) is a recognized employee organization representing employees; and WHEREAS, the City of Campbell (City) City Council retains sole authority to enter into a Memorandum of Understanding (MOU) with recognized employee organizations representing employees; and WHEREAS, the City is currently operating pursuant to a January 2023 MOU, extended by agreement of the parties through June 30, 2026; and WHEREAS, the City Council's negotiation team and CPOA representatives have reached and authorized a tentative agreement on the terms of a successor MOU for salaries, benefits and working conditions; and WHEREAS, the City has satisfied its obligation under Government Code Section 3500, et. seq., and under the City's Employer -Employee Relations Resolution No. 10016 to meet and confer over the terms and conditions of employment contained in the recommended successor MOU with CPOA; and WHEREAS, the MOU has been presented to the City Council for consideration and ratification and is attached hereto and made a part hereof; and WHEREAS, the City Council of the City of Campbell desires to ratify and adopt the provisions included in the successor MOU; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell does hereby approve and ratify the successor Memorandum of Understanding (MOU) between the City and CPOA, attached hereto and made a part hereof; and BE IT FUTHER RESOLVED that the terms and conditions of the successor MOU shall be in full force and effect from July 1, 2026 through June 30, 2028, except as specified otherwise in the MOU; and BE IT FURTHER RESOLVED that the City Appointing Power and the Human Resources Manager have the authority to take any necessary administrative actions to implement the provisions of this resolution. PASSED AND ADOPTED this 18th day of August 2026, by the following roll call vote: AYES: Councilmembers: Lopez, Hines, Scozzola, Bybee, Furtado NOES: Councilmembers: None ABSENT: Councilmembers: None APPROVED: Daniel E: Fu ado, Mayor ATTEST: Andrea Sanders, City Clerk MEMORANDUM OF UNDERSTANDING ON WAGES, EMPLOYEE BENEFITS, HOURS AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT Campbell Peace Officers' Association (CPOA) PARTIES TO UNDERSTANDING This Memorandum of Understanding is between the authorized representatives of the City Council of the City of Campbell, hereinafter referred to as "City", and the authorized representatives of Campbell Peace Officers' Association, hereinafter referred to as "CPOA". STATE LAW COMPLIANCE This Memorandum of Understanding complies with the provisions of the State of California Public Employees Representation Law, as contained in Section 3500 of the Government Code of the State in that the employer -employee representatives noted here did meet and confer in good faith and did reach agreement on those matters within the scope of representation. This Memorandum of Understanding also complies with Resolution 10016, relating to employer -employee relations, as adopted and amended by the City Council of the City of Campbell. I. GENERAL CONDITIONS A. Personnel Rules and Regulations Unless otherwise agreed to by the parties, this Memorandum of Understanding does not modify or change the provisions of the City of Campbell Personnel Rules and Regulations, hereinafter referred to as "Rules and Regulations". Because additional terms and conditions of employment are set forth in the Rules and Regulations, for the parties' convenience, the Rules and Regulations can be found at: https://www.campbellca.gov/DocumentCenter/View/19738/City-of-Campbell- Rules-and-Regulations. The parties to this Memorandum of Understanding agree that per the Meyers Milias Brown Act, any further changes to the Rules and Regulations during the term of this Memorandum of Understanding, which affect the terms and conditions of employment, require the parties to meet and confer. To the extent there is a conflict between specific provisions in the Rules and Regulations and this Memorandum of Understanding, the terms of this Memorandum of Understanding will govern. B. Terms of Understanding This Memorandum of Understanding embodies all modifications on salaries, hours, employee benefits, and other terms and conditions of employment, for a 24-month term beginning July 1, 2026 and ending June 30, 2028. CPOA MOU July 1, 2026—June 30, 2028 C. Existing Benefits Continued This Memorandum of Understanding does not modify existing salaries, benefits, hours, or terms and conditions of employment contained in the currently adopted City of Campbell Position Classification and Salary Schedule, except as noted herein. For the parties' convenience the schedule can be found at https://www.campbelica.gov/144/Salary-Benefits. Such benefits and terms of employment remain unmodified and shall continue in full force and effect throughout the term of this Memorandum of Understanding. D. Represented Classifications CPOA is recognized by the City as the authorized representative of the following classifications: • Police Officer • Police Agent • Police Sergeant Any special compensation adjustment for the benchmark classification of Police Sergeant will also be provided to classification of Police Agent. II. COMPENSATION ADJUSTMENTS Compensation adjustments of 3.2% and 3.69% set forth in subparagraphs "A." and "B." below are the result of Total Compensation analyses using the agreed upon compensation components and survey agencies listed below and bring each of the above classifications' total compensation to one-half percent (1/2%) above the fifth positioned survey agency. A. 2026 Retroactive Cost of Living Adjustment (COLA) Effective retroactive to January 1, 2026, the base salaries of all classifications represented by CPOA shall be increased by three and two -tenths percent (3.2%). All employees in classifications represented by CPOA shall also receive a one-time lump sum payment reflecting a retroactive three and two -tenths percent (3.2%) COLA for the period covering the first full pay period in January 2026 through the last full pay period in June 2026, by no later than the second pay period in October 2026. B. Salary 1. Effective the first full pay period in July 2026, the base salaries of all classifications represented by CPOA shall be increased by three and sixty-nine Page 2 of 18 CPOA MOU July 1, 2026—June 30, 2028 one -hundredths percent (3.69%). All employees in classifications represented by CPOA shall receive a one-time lump sum payment reflecting a retroactive 3.69% COLA for the period covering the first full pay period in July 2026 through the date of implementation of the 3.69% COLA, by no later than the second pay period in October 2026. 2. Effective the first full pay period in July 2027, the base salaries of all classifications represented by CPOA shall be increased by three percent (3%). 3. The compensation components to be used for Total Compensation analyses shall be as follows: Salary Min, Salary Max, Dental, Life, Vision, Medical, LTD, Uniform Allowance, Medicare, and Holiday Pay. 4. The survey agencies for CPOA are identified below: Survey Agencies Gilroy San Jose Santa Clara County Los Gatos Morgan Hill Palo Alto Santa Clara Los Altos Milpitas Mountain View III. HEALTH & WELFARE BENEFIT PROGRAMS A. Medical Insurance / Cafeteria Plan Allowance Medical Insurance The City's maximum monthly contribution for each employee represented by CPOA, hereinafter referred to as "employee", for the purchase of medical insurance will be equal to the minimum monthly employer contribution required under the Public Employees Medical and Hospital Care Act (PEMHCA). The City's contribution will come out of the amount the City currently contributes to employees as part of the Cafeteria Plan Allowance, provided below. The cost of the City's participation in CalPERS will not require the City to expend additional funds toward health insurance beyond what is already provided through the Cafeteria Plan Allowance. Any cost increase to the minimum monthly employer contribution required under PEMCHA will be borne by employees. 2. Cafeteria Plan Allowance Employees electing medical coverage in the City's plans will receive a health flex allowance and shall purchase such coverage through the City's Cafeteria Plan. Page 3 of 18 CPOA MOU July 1, 2026—June 30, 2028 Effective January 1, 2026, the monthly Cafeteria Plan Allowance is based on selected level of coverage as follows: • Employee Only Coverage: $1,151.05 • Employee Plus One Coverage: $2,302.10 • Employee Plus Family Coverage: $2,992.72 Effective January 1, 2027, the monthly Cafeteria Plan Allowance will be set at the Kaiser Permanente Region 1 rates for 2027 at the employee's selected level of coverage unless the 2027 rates are eight percent (8%) higher than the City's 2026 contribution. If the year -over -year rate increase exceeds 8% of the City's 2026 contribution, the City's Cafeteria Plan Allowance shall be eight percent (8%) higher than the 2026 rates. Employees who select a plan with rates higher than the City's Allowance will be required to make up the difference through salary redirection. Effective January 1, 2028, the monthly Cafeteria Plan Allowance will be set at the Kaiser Permanente Region 1 rates for 2028 at the employee's selected level of coverage unless the 2028 rates are eight percent (8%) higher than the City's 2027 contribution. If the year -over -year rate increase exceeds 8% of the City's 2027 contribution, the City's Cafeteria Plan Allowance shall be eight percent (8%) higher than the 2027 contribution. Employees who select a plan with rates higher than the City's Allowance will be required to make up the difference through salary redirection. Employees who elect a medical insurance plan with a lower monthly premium than the amount of the City's medical contribution may apply their unused contribution amount toward other benefit options that are available under the Cafeteria Plan, such as flexible spending accounts for out-of-pocket medical expenses and dependent care, accident insurance, cancer insurance, heart and stroke insurance, long term care insurance and life insurance benefits. Employees who do not spend all their Cafeteria Plan Allowance on Cafeteria Plan benefits will not receive any cash benefit. 3. Conditional Opt -Out Employees who at initial enrollment, or during the annual open enrollment period, complete an affidavit and provide proof of other minimum essential coverage for themselves under an exchange/marketplace or an individual plan will be allowed to waive medical coverage for themselves and their qualified dependents (tax family). The monthly conditional opt -out incentive is $750. The conditional opt -out incentive shall be paid in cash (taxable income) to the employee. The employee must notify the City within thirty (30) days of the loss of Page 4 of 18 CPOA MOU July 1, 2026—June 30, 2028 other minimum essential coverage. The conditional opt -out payment shall no longer be payable if the employee and family members cease to be enrolled in other minimum essential coverage. B. Benefit Cost Adjustments 1. The City will be responsible for the CalPERS employer contribution rate for the term of this Memorandum of Understanding. 2. The City will provide for any increase per month for the current dental coverage, including an annual maximum per patient benefit of $1,500, and orthodontia coverage with a $2,500 per patient lifetime for the term of this Memorandum of Understanding. 3. The City will provide for any increase per month for life insurance for the term of this Memorandum of Understanding. 4. The City will provide for any increase per month for the Employee Assistance Program for the term of this Memorandum of Understanding. 5. The City will provide for any increase per month for Vision Service Plan (VSP) coverage for the term of this Memorandum of Understanding. C. Uniform Allowance The City will provide a uniform allowance for all employees in the amount of $1,100 per year. Payment will be made one time each fiscal year (in July). D. Tuition Reimbursement City will continue its tuition reimbursement program and provide for one hundred percent (100%) reimbursement of each employee's tuition and required books, up to a maximum of $3,000 per employee per fiscal year, for courses taken at an accredited college. Employees will not be eligible for tuition reimbursement for classes utilized to re -qualify under the POST/Education Incentive Pay Program. E. Voluntary Employees' Beneficiary Association (VEBA) During an employee's active employment with the City, the City will contribute $170 per pay period to that employee's California Government VEBA account. Upon termination, retirement, or death, each employee's unused sick leave shall be deposited into their respective individual VEBA accounts, pursuant to the limitations set forth below. Page 5 of 18 CPOA MOU July 1, 2026—June 30, 2028 YEARS OF SERVICE NET % OF UNUSED SICK LEAVE TO VEBA Under 5 Years of Service 0% 5 years completed through 10 years 20% at terminal pay rate completed service Start of year 11 through completion of 30% at terminal pay rate year 15 Start of year 16 though completion of 40% at terminal pay rate ear 20 Start of year 21 and thereafter 50% at terminal pay rate Employees agree to waive any option they currently have to designate the use of their unused sick leave upon termination, retirement, or death, including opting to cash out their unused sick leave or opting to use the value of their unused sick leave towards the purchase of years of service. F. Deferred Compensation For the term of this Memorandum of Understanding, the City will contribute $20 per pay period towards a CaIPERS 457 Plan (Section 457) account for each employee who maintains a Section 457 account and matches the City contribution by making their own contribution of $20 per pay period to the same account. IV. SPECIALITY PAY / INCENTIVE PROGRAMS Specialty Pay and Incentive Programs pay are subject to CalPERS statutes and regulations. A. Specialty Pay The maximum additional specialty pay compensation any employee may receive under this section shall be no more than five percent (5%) of the employee's base pay. 1. Canine Pay Employees assigned to the Canine Handler position will receive 5% above their base pay rate during their assignment as a Canine Handler. The Canine Handler position does not include employees handling or caring for an emotional support / therapy canine. a. Release Time: Employees assigned as Canine Handlers shall receive seven (7) hours per biweekly pay period of release time. This represents one half hour per day (3.5 hours per week) for time spent caring for the canine outside of normal work hours. The City and the CPOA have considered the Page 6 of 18 CPOA MOU July 1, 2026—June 30, 2028 time that canine handlers typically spend on off -duty canine care and have determined one half hour per day (3.5 hours a week) is reasonable. Every effort will be made to allow the Canine Handler to flex this time with regular hours. When circumstances do not allow for these hours to be flexed, and with supervisor approval, the Canine Handler will be compensated for the 3.5 hours per week of release time at the rate of one and one-half times the State of California minimum wage rate. 2. Motorcycle Patrol Pay Employees assigned to the Traffic Unit as a Motor Officer will receive 5% above their base pay rate during this assignment. B. Incentive Programs 1. Retention Pay Effective the first full pay period in January 2023, employees covered by this MOU shall be entitled to retention pay as follows: a. For five (5) years of continuous service with the Police Department, a one- time payment of 4% of annual base pay in the pay period following the employee's five-year anniversary date, as long as the employee's two (2) most recent annual performance evaluations were satisfactory or better. b. For ten (10) years of continuous service with the Police Department, a one- time payment of 8% of annual base pay in the pay period following the employee's ten-year anniversary date, as long as the employee's two (2) most recent annual performance evaluations were satisfactory or better. c. For fifteen (15) years of continuous service with the Police Department, a one-time payment of 10% of annual base pay in the pay period following the employee's fifteen -year anniversary date, as long as the employee's two (2) most recent annual performance evaluations were satisfactory or better. d. For twenty (20) years of continuous service with the Police Department, a one-time payment of 12% of annual base pay in the pay period following the employee's twenty-year anniversary date, as long as the employee's two (2) most recent annual performance evaluations were satisfactory or better. The parties agree that Retention Pay is not special compensation per Title 2 of the California Code of Regulations, sections 571 and 571.1. Page 7 of 18 CPOA MOU July 1, 2026—June 30, 2028 2. Bilingualy Employees who are certified to have a working level of competence in languages other than English, spoken regularly in contacts with members of the Campbell community, will receive an additional $100 per pay period as Bilingual Pay. In order to be eligible for Bilingual Pay, the Police Chief must certify that the employee regularly has a need to use their bilingual skills in communicating with members of the community. Additionally, the employee must pass a certification test completed by a trained professional. 3. Crisis Intervention Training Pay a. Employees who have successfully completed the Crisis Intervention Training (CIT) program will receive an increase in their salary equal to two percent (2%) of their base pay. b. To be eligible for the CIT pay, an employee must have achieved one of the following: i. California POST Crisis Intervention Training (Basic) Certification; ii. California POST Hostage (Crisis) Negotiation Training (Basic Certification); or iii. 24 hours of accumulated training as approved by the Department Head / appointed authority, including but not limited to courses in crisis intervention, de-escalation, strategic communication, and other topics relative to promoting positive, non -biased, nonuse of force interactions with the community. 4. POST/Education Incentive Pay The City will pay five percent (5%) incentive pay to employees possessing an Intermediate POST Certificate and seven and one-half percent (7.5%) to employees possessing an Advanced POST Certificate. Prior to qualifying for this incentive pay, an employee must have served for a minimum of two years as a Police Officer in the City of Campbell Police Department or two years as a Police Officer in another agency recognized by POST if hired by Campbell as a Police Officer. V. CaIPERS RETIREMENT PLANS The City will provide CalPERS Retirement Plan benefits as noted below. A summary of the plan's major benefits options can be found in the Public Agency Actuarial Valuation Reports which can be found at https://www.calpers.ca.` o�ployers/actuarial- Page 8 of 18 CPOA MOU July 1, 2026—June 30, 2028 resources/public-agency-actuarial-valuation-reports and a complete list of Public Agency Required Employer Contributions can be found at https://www.calpers.ca.g ov/page/employers/actuarial-resources/employer- contributions/public-agency-contributions. A. For Classic Safety Members hired prior to Oct 18, 2010: 1. 3% at age 50 2. Highest 12-month salary 3. Military service buy back option 4. 1959 Survivor Benefit — Level 4, One-half continuance B. For Classic Safety Members hired on or after Oct 18, 2010 1. 2% at age 50 2. Highest 12-month salary 3. Military service buy back option 4. 1959 Survivor Benefit — Level 4, One-half continuance C. For New Safety Members (PEPRA) hired on or after January 1, 2013: 1. 2.7 % at age 57 2. Highest 36-month salary 3. Military service buy back option 4. 1959 Survivor Benefit — Level 4, One-half continuance VI. HOURS OF WORK AND OVERTIME A. Hours of Work. Employees shall work forty hours per week and the hours during which offices shall be open for business shall be determined by the City Manager. 1. Establishing the Workweek. By mutual agreement of a majority of department or division personnel and management staff, with the authorization of the City Manager and the City Council, hours of work may be established for groups of employees on the basis of (1) flex time, (2) 4/10 plan, or (3) other specially arranged working hour plans within the basic requirements of a standard 40- hour workweek. B. Overtime. Overtime shall be defined as that time authorized and actually worked by an employee in excess of normal weekly hours as prescribed in paragraph "A." above. At the discretion of the department head, overtime will be compensated by time and one-half pay or time and one-half compensatory time under the following conditions: 1. Overtime work is ordered or authorized by the employee's department head. 2. Employees who are called back to work by their immediate supervisor shall be granted the following minimum paid overtime or compensatory time. Page 9 of 18 CPOA MOU July 1, 2026—June 30, 2028 a. Non-Manaqement Personnel: 3 hours paid @ time and one-half OR, if eligible, 4-1/2 hours compensatory time. b. Double Overtime: Emergencies and investigations directly related to the City of Campbell where continuous overtime extends the regular work shift for an employee more than one and one-half (1.5) times the number of hours of that shift (18 hours for employees scheduled to a 12-hour shift, and 15 hours for employees scheduled to a 10-hour shift) will be paid at two times the employee's regular rate of pay. Double overtime will not be paid for pre - planned events where no emergency exists, or in response to requests for Mutual -Aid. As per policy, all time cards are approved by the Division Commanders. Any questions or issues related to approval will be settled at the discretion of the employee's division commander. 3. Employees who are required to attend scheduled training sessions, staff meetings, or seminars which require time beyond the normal day or week, as defined in paragraph "A." above, shall be compensated with time off or pay in accordance with paragraph "B." above. 4. Overtime pay shall not begin until the employee has worked the hours required for their basic workweek, as set forth in paragraph "A." above. All authorized paid leave time taken shall be credited as part of the basic workweek except that hours not worked, at the employee's option, where those hours are charged to compensatory time off, during the employee's 40-hour workweek and extra hours worked during that same period, totaling 40 hours, will be considered to be flexible scheduling within that workweek, and no compensatory time will be granted. C. Compensatory Time. At the discretion of the department head, compensatory time shall be granted to employees. Such compensatory time is to be on a time and one- half basis, and will be governed by the following provisions: 1. Compensatory time earned by an employee who is required to work in excess of the normal workweek shall be recorded in actual hours worked on the employee's timecard and submitted to the Finance Department. 2. The maximum accumulation of compensatory time is as follows: a. For employees represented by CPOA, compensatory time shall not be allowed to accumulate in excess of 240 hours. b. Employees represented by CPOA shall not be allowed to accumulate in excess of hours as stated above. Any compensation time earned exceeding maximum accrual hours will be paid in cash at the rate of time and one-half. An employee may exercise their option two times each calendar year to convert any or all accumulated compensatory time to cash. Page 10 of 18 CPOA MOU July 1, 2026—June 30, 2028 3. Use of compensatory time must be scheduled at least 24 hours in advance with the employee's supervisor and recorded on the employee's timecard for submission to the Finance Department. 4. If possible, arrangements will be made to allow employees to use accrued compensatory time prior to termination. Otherwise, accrued comp time shall be paid off upon termination in accordance with section 553.21 of the Fair Labor Standards Act. Overtime Under the Fair Labor Standards Act. For the purpose of calculating overtime pursuant to the requirements of the Fair Labor Standards Act ("FLSA"), the City has declared a twenty-eight (28) day work period for all bargaining unit classifications eligible for the partial overtime exemption under section 207(k) of the FLSA. The work period commences at 12:01 am and ends at 11:59pm, twenty-eight (28) days later. Notwithstanding the contract overtime provisions outlined above, the City has adopted a dual calculation method whereby it calculates FLSA overtime in accordance with the requirements of the FLSA. This requires the payment of FLSA overtime for all hours actually worked by non-exempt employees in excess of one hundred and seventy-one (171) hours in the twenty-eight (28) day work period. To the extent the City's dual calculation method determines that FLSA overtime owed for the twenty-eight (28) day work period exceeds the amount of contract overtime paid pursuant to this section for the same twenty-eight (28) day work period, the difference will be paid to the employee in the following pay period by way of an FLSA adjustment. For the purpose of calculating overtime as defined in this section, the following listed special pays and compensation will be added to the employee's base hourly rate of pay to arrive at the employee's overtime rate of pay: • Bilingual Pay • Conditional Opt -Out Incentive Pay (Health Insurance Rebate) • Working Out -of -Class Pay • Specialty Pay • Canine Pay • Motorcycle Pay • Crisis Intervention Training (CIT) Pay • Peace Officers Standard Training (POST) Pay • Training Premium • Stand By / On -Call Pay • Retention Pay Page 11 of 18 CPOA MOU July 1, 2026—June 30, 2028 VII. RETIREE AWARD PROGRAM The City's retiree medical reimbursement program will contain the following eligibility requirements and benefits: • Must be hired on or before December 31, 2019 (employees hired on or after January 1, 2020 will not be eligible for the Retiree Award Program). • Minimum retirement age of 50 and retired from the City of Campbell. • Bills must be submitted to the City in January and July of each year for reimbursement for the prior six months' costs. • Payment for medical insurance coverage for the retiree only (not dependents) on a reimbursement basis as follows: o Employees who have completed 17 years of service with the City of Campbell or receive an industrial disability retirement after July 1, 1999, will be reimbursed a maximum of $325 per month. VIII. GRIEVANCE PROCEDURES A. Definition, Scope and Right to File A grievance is defined as any dispute involving the interpretation, application or alleged violation of: 1. A current Memorandum of Understanding between the City and a recognized employee organization. 2. The City's Rules and Regulations where the provision in dispute is within the scope of representation excluding, however, any provision that specifically provides that the decision of the City Manager or other City Official shall be final. 3. Administrative policies and procedures of the City regarding personnel matters where the procedure or policy in dispute concerns a matter within the scope of representation. B. Grievance Steps 1. Step 1: An employee who has a grievance shall bring it to the attention of their immediate supervisor within five (5) business days of the occurrence of the act which is the basis for the dispute. If the employee and the immediate supervisor are unable to resolve the grievance at this step, within five (5) business days of the date the grievance is raised with the immediate supervisor, the employee shall have the right to submit a formal grievance to their department head (see Step 2) which shall contain the following information: Page 12 of 18 CPOA MOU July 1, 2026—June 30, 2028 a. The name and job classification of the employee. b. The name of the employee's immediate supervisor. c. A statement of the nature of the grievance, including date and place of occurrence. d. The specific provision, policy or procedure alleged to have been violated. e. The remedies sought by the employee. f. The signature of the employee or the employee's union representative. If mutually agreed by the department head and the employee, the department head may hold an informal meeting regarding the grievance prior to the submittal of the formal grievance form. If this informal meeting does not resolve the grievance, the employee will be required to submit a formal grievance form to the department head for the department head's formal decision. 2. Step 2: An employee dissatisfied with the decision of the immediate supervisor in Step 1 may submit the grievance in the manner provided above to their department head within seven (7) business days from the date of the immediate supervisor's decision. The department head shall respond to the grievance in writing within ten (10) business days from the date of its receipt. At the discretion of the department head, the grievance may be referred to a subordinate manager above the level of the supervisor. 3. Step 3: If the employee is dissatisfied with the decision of the department head in Step 2, they may submit the grievance to the City Manager within ten (10) business days from receipt of the department head's response. The City Manager, or his designated representative, shall respond to the grievance in writing within ten (10) business days of its receipt. Within this period, the City Manager, at their discretion, may conduct an informal hearing involving the parties to the dispute. 4. Step 4: If the employee is dissatisfied with the decision of the City Manager, they may submit the grievance to binding arbitration within ten (10) business days of the receipt of the City Manager's decision. The arbitrator shall be a representative from the State Mediation and Conciliation Service, or an individual acceptable to the Human Resources Manager and the employee. An individual, other than a State representative, chosen by the parties shall be knowledgeable in public sector relations and may be chosen from any source reasonably likely to produce such an individual, including but not limited to a labor organization or management organization. Any costs incurred through the obtaining of the services of the chairperson shall be equally shared between the City and the employee or the CPOA. The arbitrator shall conduct a hearing on the grievance within thirty (30) calendar days from the date the grievance is filed at this step and shall render its decision within fifteen (15) business days from the conclusion of the hearing. The Page 13 of 18 CPOA MOU July 1, 2026—June 30, 2028 decision of the arbitrator shall be final and binding and shall only be subject to ratification by the City Council if said decision mandates an unbudgeted expenditure. All hearings shall be conducted in an expeditious manner, with the arbitrator retaining final authority to rule on procedural matters or other points which affect the length and conduct of the hearing. Court reporters and post -hearing briefs shall only be utilized upon joint agreement between the employee and the City and shall not serve to delay the Arbitrator's decision beyond the prescribed time limits, except by mutual agreement. C. General Conditions for All Grievances 1. Any time limit set forth above may be extended by written agreement between the parties. 2. A representative of CPOA, if the recognized employee organization has been formally extended bargaining rights for the employee's position, shall be entitled to be present at any hearing held in conjunction with Steps 3 and 4 of this Grievance Procedure. In addition, at the request of the employee, the above - mentioned representative shall be entitled to be present beginning at Step 2. 3. The employee and their designated representative shall be entitled to utilize a reasonable amount of work time, as determined by the employee's department head, to confer on the grievance. This reasonable amount of time shall not interfere with City operations. 4. The City Manager's Office shall serve as the central repository for all grievance records. 5. The grievance procedure will be implemented as expeditiously as possible. IX. DISCIPLINARY PROCEDURES The City and CPOA have agreed to incorporate the following disciplinary procedures into this Memorandum of Understanding. These provisions supersede the discipline policies and procedures set forth in the Rules and Regulations: A. Causes for Disciplinary Action Employees may be disciplined for just cause including but not limited to the following: 1. Fraud in securing appointment or making a false statement on an application for employment. Page 14 of 18 CPOA MOU July 1, 2026—June 30, 2028 2. Incompetence, inefficiency or neglect of duty. 3. Insubordination/willful disobedience. 4. Dishonesty or immorality. 5. Being under the influence of drugs or alcohol while on duty. 6. Illegal possession or use of narcotics or controlled substances. 7. Unauthorized leave of absence. 8. Conviction of a felony or conviction of a misdemeanor involving moral turpitude. 9. Discourteous treatment of the public or other employees. 10. Illegal political activity in violation of the California Government Code. 11. Abuse or misuse, or appropriation for personal use, of City property. 12. Violation of any of the applicable provisions of the Rules and Regulations, Departmental Duty Manual, and/or this Memorandum of Understanding. 13. Any willful act of conduct, either during or outside of duty hours, which is of such a nature that it causes discredit to the City and/or the Police Department. 14.Outside employment not specifically authorized by the appointing authority or their designee. 15. Abuse of power, including, but not limited to, intimidating witnesses, knowingly obtaining a false confession, and knowingly making a false arrest. 16. Physical abuse, including but not limited to, the excessive or unreasonable use of force . 17. Acts that violate the law and are sufficiently egregious or repeated as to be inconsistent with a peace officer's obligation to uphold the law or respect the rights of members of the public. 18. Participation in a law enforcement gang. 19. Failure to cooperate with an investigation into potential police misconduct. 20. Failure to intercede when present and observing another officer using force that is clearly beyond that which is necessary. B. Types of Disciplinary Action In addition to the definition of "punitive action" set forth in California Government Code section 3303, types of disciplinary action, which may be taken, in order of severity, are: dismissal, demotion, suspension, salary step reduction, written reprimand, oral counseling, or an appropriate combination of these disciplinary actions. C. Persons by Whom Disciplinary Action May be Taken The Police Chief or their designee may take disciplinary action in the form of demotion, suspension, salary step reduction, written reprimand or oral counseling. The City's Human Resources Division will provide advisory support to the Chief of Police for compliance with applicable legal rules and City policies and procedures. Page 15 of 18 CPOA MOU July 1, 2026—June 30, 2028 As the appointing authority, upon recommendation of the Police Chief, the City Manager is vested with final authority to dismiss an employee for cause. D. Informal Appeal Procedure for Written Reprimands An employee who receives a written reprimand will be entitled to appeal the reprimand to the Police Chief following issuance of the reprimand. The appeal is an opportunity for the employee to present a written rebuttal and/or oral argument addressing the basis for the written reprimand. Within ten (10) business days of the date of the written reprimand, the employee may file a written request with the Police Chief to appeal the reprimand. Upon receipt of a timely request, the Chief shall schedule a meeting within thirty (30) calendar days of receiving the employee's appeal to hear the appeal. The appeal meeting will be limited to the employee and their legal representative(s). Within five (5) business days of the meeting, the Police Chief will provide the employee with a written decision on the appeal. The Chief's decision shall be final and binding. This right of appeal is in addition to the employee's right to file a written rebuttal to the reprimand as specified in the Peace Officers' Procedural Bill of Rights, under California Government Code Section 3300 et. seq. E. Pre -Disciplinary Action Procedure Disciplinary actions in the form of dismissal, demotion, salary step reduction, or suspension will conform to the following procedural safeguards prior to the imposition of the disciplinary action: 1. Notice — written notice of the proposed disciplinary action will be served upon the employee. 2. Reasons — The factual and legal basis for the disciplinary action will be cited in the notice. 3. Charges and Supporting Material — a copy of the materials and information supporting the proposed disciplinary action will be included with the notice of proposed discipline. 4. Pre -discipline Conference (Skelly) — The employee will have the right to respond, orally, in writing, or both, to the authority initially proposing the disciplinary action. Upon receipt of the proposed disciplinary action and supporting material, the employee will have not less than ten (10) business days within which to request Page 16 of 18 CPOA MOU July 1, 2026—June 30, 2028 a meeting with the authority proposing the discipline. The purpose of the meeting is to allow the employee and/or their representative to provide any information they believe relevant to the proposed disciplinary action. The meeting is not intended to be an evidentiary hearing and only the subject employee and their representative(s) will be allowed to attend. Within thirty (30) calendar days of the Skelly meeting, the authority proposing the discipline will provide the employee with a written decision on the appeal. 5. Final Disciplinary Action Procedure — Following the pre -discipline conference, or the subject employee's waiver of the same, the appropriate final authority for imposing the discipline in question will serve the final written decision of discipline on the employee and their legal representative. The final decision shall include a statement of the department's decision on the level of discipline, the effective date of the action and a statement of the factual and legal basis for the discipline, citing the City/Department rules violated. 6. Right of Post -Disciplinary Appeal Procedure — An employee will have the right to appeal from any disciplinary action taken under this section. Such appeals must be filed in writing with the authority imposing the disciplinary action (i.e., City Manager or Police Chief), with a copy to the Human Resources Division, within ten (10) business days from the date of the final notice of discipline. Failure to file a timely written request for an appeal waives the right to an appeal hearing and any appeal of the discipline. The appeal hearing officer ("Appeal Hearing Officer") will be an individual selected through the California State Mediation and Conciliation Service ("SMCS"). The parties will select the Appeal Hearing Officer from a list of seven (7) neutrals provided by SMCS. The Appeal Hearing Officer may be selected by stipulation of the parties, or through the striking of names from the SMCS list. The appeal hearing need not be conducted according to technical rules relating to evidence and witnesses, but hearings will be conducted in a manner that the Appeal Hearing Officer decides is the most conducive to determining the truth and finding the facts. The rules dealing with privileges will be effective to the same extent that they are recognized in civil actions. Irrelevant or unduly repetitious evidence may be excluded. The Appeal Hearing Officer will determine the relevance, weight and credibility of testimony and evidence. The Appeal Hearing Officer will not have the power to alter, amend, change, add to, or subtract from any of the terms or conditions of the parties' Memorandum of Understanding. Unless extended by mutual agreement of the parties, no later than ninety (90) calendar days of the conclusion of the hearing, the Appeal Hearing Officer will submit written findings and conclusions addressing the issues on appeal to the Page 17 of 18 CPOA MOU July 1, 2026—June 30, 2028 City Manager. For appeals from demotion, salary step reduction, or suspension, the Appeal Hearing Officer's decision shall be final and binding. For dismissal appeals, the Appeal Hearing Officer's decision shall be advisory to the City Manager, in which case the City Manager will have the authority to affirm, revoke or modify the Appeal Hearing Officer's findings and conclusions. The City Manager's final decision will be subject to a writ of administrative mandamus under California Code of Civil Procedure Section 1094.5. EXECUTED THIS DAY OF EMPLOYEE REPRESENTATIVES, WHOSE THEIR RESPECTIVE ORGANIZATION. CITY REPRESENTATIVES: Brian Loventhal, City Manager Angelique Gaeta, Assistant City Manager Ada Chang, Human Resources Manager 20269 BY THE EMPLOYER - SIGNATURES APPEAR BELOW, FOR Page 18 of 18 CPOA REPRESENTATIVES: Matt Ryan, CPOA President Lee Heitzman, CPOA Vice -President Benjamin Palmer CPOA Secretary / Treasurer