CC Resolution 13111 - Approval of Settlement Agreement with CPOA RESOLUTION NO. 13111
A RESOLUTION APPROVING A SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
BETWEEN THE CITY OF CAMPBELL AND THE CAMPBELL PEACE OFFICERS' ASSOCIATION
(CPOA) REGARDING BACK PAY OWED TO CURRENT AND FORMER CPOA MEMBERS UNDER
THE FAIR LABOR STANDARDS ACT
WHEREAS, in 2021, the City of Campbell (City) became aware of a potential issue with its calculation
of overtime payments owed to employees under the Fair Labor Standards Act (FLSA); and
WHEREAS, in 2022 and 2023, the City worked to analyze back pay potentially owed for each
bargaining group; and
WHEREAS, while analyzing back pay potentially owed to members of the Campbell Peace Officers'
Association (CPOA), the City became aware of additional technical issues with the CPOA's overtime
calculations; and
WHEREAS, the City has now completed its analysis and calculations for back pay owed to members of
the CPOA; and
WHEREAS, the City is recommending the City Council approve a Settlement Agreement And Release
of Claims (Settlement Agreement) between the City and the CPOA, attached hereto and made a part
hereof; and
WHEREAS, the Settlement Agreement covers from July 1, 2017 through March 19, 2023 for claims
arising from calculations related to the City's "insurance rebate" and compensatory time off(CTO); and
WHEREAS, the Settlement Agreement also covers from January 1, 2020 through March 19, 2023 for
claims arising from calculations related to "add-on pays"; and
WHEREAS, the Settlement Agreement amount is for a total of up to $69,359.91; with $67,022.00
payable to current employees, and up to $2,337.91 payable to former employees.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell does hereby
approve the attached Settlement Agreement and Release of Claims for a total amount of up to
$69,359.91.
PASSED AND ADOPTED this 6th day of February, 2024, by the following roll call vote:
AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
Susan M. L dry, Mayor
ATTEST:
ha
Andrea Sanders, Clerk
SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and Release ("Agreement") is entered into by and between the City
of Campbell ("City")and the Campbell Peace Officers' Association("Association"). This
Agreement is effective on the Effective Date set forth below.
RECITALS
A. WHEREAS,the Association is the designated exclusive bargaining representative of
those City job classifications in the bargaining unit that are identified in the labor
agreement by and between the City and the Association; and
B. WHEREAS,the City recently undertook an internal review of its overtime policies and
practices to ensure compliance with the calculation and payment of overtime
requirements of the parties' labor agreement and the Fair Labor Standards Act("FLSA");
and
C. WHEREAS,the City's internal review determined that certain aspects of its contractual
overtime policies and practices pertaining to the calculation of the regular rate of pay did
not strictly comply with the particular requirements of the FLSA and that other aspects of
its overtime policies and practices exceeded the requirements of the FLSA; and
D. WHEREAS,the City undertook an internal analysis to determine the amount of back
overtime due to the current and former members of the bargaining unit had their overtime
and cash out of accrued Compensatory Time Off("CTO") been calculated in compliance
with the labor agreement and the FLSA; and
E. WHEREAS, effective March 20, 2023,the City amended its overtime practices to
comply with the requirements of the labor agreement and the FLSA; and
F. WHEREAS,the Parties wish to enter into a compromise and release related to any and all
claims by the Association on behalf of the bargaining unit members regarding the
calculation and payment of overtime and accrued CTO under the labor agreement.
NOW THEREFORE, in consideration for the mutual promises and undertakings of the Parties as
set forth below,the Parties enter into this Agreement and agree as follows:
A. Settlement
Settlement Period: The Parties agree that this settlement will cover the time period from
July 1, 2017 through March 19, 2023 for claims arising from the City's omission of cash in
lieu of health benefits (also referred to as "insurance rebate")from the regular rate of pay
and CTO cash out value for both active employees and former employees. The Parties
further agree that this settlement will cover the time period from January 1, 2020 through
12202686.3 CA025-032
March 19, 2023 for claims arising from the City's omission of other compensation items
(also referred to as "add-on pays")from the regular rate of pay for active employees. These
time periods shall hereafter collectively be referred to as the"Settlement Period". Only
individuals who were a member of the bargaining unit represented by the Association
during the Settlement Period are covered by and subject to the terms of this Agreement.
Bifurcation of Settlement: The parties further agree that this settlement is designed to
effectuate the payment of the settlement amounts in two parts.Part One will cover current
bargaining unit members and provide for the payment of the settlement amounts listed in
Attachments A- C. Part Two will cover all former City employees who left the bargaining
unit during the Settlement Period, as confirmed by the City, and provide for the payment of
the settlement amounts listed in in Attachments D-E. The settlement and payment of back
overtime under Parts One and Two will be as described below.
Settlement Calculation Methodology: The Parties agree that in determining the amount of
back overtime compensation owed pursuant to this settlement,the City has identified each
pay period in the Settlement Period that former and current bargaining unit members
received overtime and recalculated the overtime by including the insurance rebate and add-
on pays incorrectly excluded from the overtime regular rate of pay calculation.Add-on
pays to now be included as part of the FLSA overtime calculation per this settlement
agreement are:
• Bilingual pay;
• Conditional-Opt-Out Incentive Pay;
• Working-Out-Of-Class Pay;
• Specialty Pay;
• Canine Pay;
• Motorcycle Pay;
• Crisis Intervention Training Pay; and
• Peace Officers Standard Training(POST)Pay.
Settlement Part One: Based on the calculation methodology summarized above,the City
will pay a total amount of$67,022.00 to current employees in the bargaining unit,hereafter
referred to as the Part One Settlement Amount. The allocation of the Part One Settlement
Amount to the current bargaining unit members will be as set forth in Attachments A
through C,hereafter referred to as"Part One Settlement Payments". The Parties
understand and agree that the Part One Settlement amount represents a reasonable
compromise of disputed claims and reflects agreed upon and negotiated consideration for
any and all overtime compensation allegedly owed to the current members of the
bargaining unit under the labor agreement, during the Settlement Period. By executing this
agreement and accepting the payments set forth in Attachments A through C,the
Association, on behalf of the bargaining unit members and each of them, expressly waives
the bargaining unit's claims for any and all further recovery, including,but not limited to,
back pay due to the City's contractual overtime policies and practices pertaining to the
calculation of the regular rate of pay. Payment of the amounts listed in Attachments A-C
will occur within ninety(90) calendar days of the Effective Date of this Agreement.
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Settlement Part Two: Within ninety (90) calendar days of the Effective Date of this
Agreement,the City will send written notice to each of the former bargaining unit members
listed in Attachments D and E,providing them with a copy of this settlement agreement
and its attachments. The notice will advise the former bargaining unit members of the
Parties' disputed claims and issues pertaining to the City's overtime compliance and of
their right to opt into the negotiated settlement, by submitting a fully executed individual
acknowledgment and acceptance of this Agreement form,which is attached to this
Agreement as Attachment F("Opt-in Form). Each former bargaining unit member will be
provided sixty (60) calendar days from the date of the notice to execute and return the Opt-
In Form to the City. No later than thirty(30) calendar days after the deadline for former
members to return their executed Opt-in Forms,the City shall issue payment to all former
members who timely submitted their fully executed Opt-in Forms.
B. Bona Fide Dispute
The Parties agree that this settlement resolves a"bona fide" contractual dispute over the
City's overtime policies and practices pertaining to the calculation of the regular rate of
pay. Specifically,the Parties, by this Agreement,are settling a dispute regarding the City's
method of calculating the regular rate of pay and measuring overtime compensation due
bargaining unit members per the terms of the labor agreement,which the Parties believe to
be more favorable than what is required under the FLSA. The Settlement Payments are
paid as full and complete consideration for the resolution of that dispute.
C. Method of Payment
The Parties understand and agree that the payments under the Settlement Part One will be
issued as part of the Employees' regular paycheck, itemized as RETRO OVERTIME PAY.
The Parties further understand and agree that the payments issued pursuant to this
Agreement are subject to the standard, applicable tax withholding amounts and that neither
Party has offered or received tax advice to or from the other as to the necessary reporting of
income pursuant to this settlement.
D. Acceptance of Terms and Conditions of Settlement
By accepting the payments provided by this Agreement, each current and former
bargaining unit member expressly agrees that the allocation of the Settlement Amount, as
provided herein, is fair,just, and reasonable and acceptable to all of them.
E. General Release
Each current and former bargaining unit member listed in Attachment A through E, by
accepting his/her respective settlement amount,understands and agrees that their
acceptance of that amount constitutes a full and complete settlement of all contractual
claims against the City for the contractual overtime policies and practices pertaining to the
calculation of the regular rate of pay that may exist or have existed for services rendered
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during the Settlement Period.Further, each current and former bargaining unit member,
listed in Attachments A through E by accepting his/her respective settlement amount,
hereby fully, finally, and completely releases, waives and discharges the City, and its
officers, agents, employees, successors and assigns from any further claims for contractual
overtime due for services rendered during the settlement period. The current and former
bargaining unit members reserve the right to pursue any non-contractual claims for back
overtime amounts not covered and paid under this Agreement.
The Parties to this settlement understand that this Release extends to all grievances,
disputes, or claims of every nature and kind, known or unknown, suspected or unsuspected,
arising from or attributable to the City's contractual overtime policies and practices
pertaining to the calculation of the regular rate of pay during the Settlement Period. The
Parties understand that this release does not include claims relating to conduct or activity
which does not arise from or is attributable to any conduct or activity occurring after the
Settlement Period of this Agreement. The Parties understand that this is a compromise
settlement of disputed claims and that nothing herein shall be deemed or construed at any
time or for any purpose as an admission of the merits of any claim or defense.
The Parties further acknowledge that any and all rights granted them under section 1542 of
the California Civil Code are hereby expressly waived regarding the contract overtime
claims occurring during the Settlement Period relating to the City's contractual overtime
policies and practices pertaining to the calculation of the regular rate of pay. Section 1542
of the California Civil Code provides as follows:
CERTAIN CLAIMS NOT AFFECTED BY GENERAL RELEASE. A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR
HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
F. Knowledge of the Parties
The Parties understand and agree to this Agreement, and the terms and conditions
contained herein, and enter into this Agreement knowingly and voluntarily. The Parties
have investigated the facts pertaining to this Agreement and all matters pertaining thereto
as deemed necessary. The Parties have relied upon their judgment, belief, knowledge,
understanding and expertise after consultation with their designated legal representatives
concerning the legal effect of the settlement and its terms.By signing this Agreement,the
Parties signify their full understanding, agreement, and acceptance of the Agreement.
G. Governing Law and Venue
This Agreement will be governed by and construed in accordance with the laws of the State
of California and, if necessary, federal law. To the extent that any party brings an action to
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enforce the terms of this Agreement, such action shall be filed and prosecuted in the
Superior Court in the County of Santa Clara.
H. Entire Agreement
This Agreement and the attachments constitute the entire agreement between the Parties
regarding this matter.No other promise or inducement has been offered for this Agreement.
Any amendments to this Agreement must be in writing, signed by duly authorized
representatives of the City and the Association, and must state that the Parties intend to
amend the Agreement.
I. Duty to Act in Good Faith
The Parties shall act in good faith and use their reasonable good faith efforts after the
execution of this Agreement to ensure that their respective obligations hereunder are fully
and punctually performed. The parties shall promptly perform any further acts and execute
and deliver any other documents or instruments that may be reasonably necessary to carry
out the provisions of the Agreement.
J. Partial Invalidity
The invalidity or unenforceability of any provision of this Agreement shall in no way affect
the validity or enforceability of any other provision of this Agreement.
K. Confidentiality and Disclosure of Terms
The Parties each agree to maintain the confidentiality of the negotiations underlying this
Agreement to the extent permitted by law, and agree that they shall not voluntarily and
publicly discuss the negotiations that led to this Agreement. This provision shall not extend
to any information relating to the negotiations of this Agreement that the City may be
required to disclose pursuant to the requirements of the Ralph M.Brown Act, Government
Code section 54950, et. seq.,the California Public Records Act, Government Code section
7920, et. seq., or the provisions of any other law or regulation requiring disclosure of
information by public entities.
L. Counterparts
This Agreement may be executed in any number of counterparts, each of which will be
deemed an original, but all of which together shall constitute one-in-the-same document.
M. Effective Date
This Agreement shall become effective following execution by all of the Parties,the
undersigned counsel for the Parties, and the approval of the City Council.
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IN WITNESS WHEREOF,the Parties hereto have executed this Settlement Agreement and
Release on the dates hereinafter indicated.
FOR THE CITY OF CAMPBELL FOR THE CAMPBELL POLICE
OFFICERS ASSOCIATION
ibeCtri4 hail Rit124.T.
Matt Ryan, President
Date: 6 rQ h 29' Date: December 15, 2023
APPROVED AS TO FORM APPROVED AS TO FORM
Lisa Charbonneau,LCW Peter Hoffmann, RLS
Date: l?- f 2. 2 / 2 3 Date: December 28, 2023
1
12202686.3 CA025-032
1
Attachment A
CTO Insurance Rebate—Current Employees
MARK G CUTLER -
VICTOR M QUINTERO 830.03
SPENCER A BILLMAN 1,772.32
WILLIAM NUNN JR 941.62
BRAD D RICE 3,860.27
JASON D FAVREAU 911.62
JAMES W JOINES 1,533.47
LEE W HEITZMAN -
DANIEL P STROMSKA 6,552.19
MARGARET F LEITZ 1,108.49
JAMES C COOPER 591.00
NAJIB M MAGEE
JORDAN A FINESTONE -
MICHAEL S KARDAN -
DARRICK HONG 2,523.57
ADAM M ALAMEDA 2,135.85
STEVE T MUNOZ 1,235.37
JOSE I TALAMANTES -
CHRISTOPHER JOINES 1,729.86
Sub-Total 25,725.66
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Attachment B
CTO Add-On Pays—Current Employees
Active
MARK G CUTLER 2,979.22
VICTOR M QUINTERO -
SPENCER A BILLMAN 1,087.73
WILLIAM NUNN JR 407.80
BRAD D RICE 3,075.84
JASON D FAVREAU 829.34
JAMES W JOINES 238.44
LEE W HEITZMAN 819.67
DANIEL P STROMSKA 3,231.97
MARGARET F LEITZ 1,623.52
JAMES C COOPER -
NAJIB M MAGEE 779.40
JORDAN A FINESTONE 996.08
MICHAEL S KARDAN 339.42
DARRICK HONG 1,195.82
ADAM M ALAMEDA 1,897.02
STEVE T MUNOZ 881.70
JOSE I TALAMANTES 757.62
CHRISTOPHER JOINES -
Total 21,140.58
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Attachment C
Overtime Pay—Regular Rate
EE# First Last Amt
1839 ADAM M ALAMEDA '1,926.77
1895 GARY BENDIXEN 722.76
1770 SPENCER BILLMAN 2,132.79
1877 SCOTT BUCKOVIC 841.44
1886 ANDREW COLTON 93.05
1827 JAMES C COOPER 400.01
1647 MARK CUTLER 47.44
1780 JASON FAVREAU 554.03
1830 JORDAN A FINESTONE 88.89
1807 EDITH G FONG 433.48
1834 DARRICK HONG 1,157.18
1904 CODY JOHNSON 9.78
1874 CHRISTOPHER JOINES 658.86
1783 JAMES JOINES 272.90
1833 MICHAEL S KARDAN 1.62
1796 MARGARET LEITZ 124.25
1862 DANIEL LEON 0.04
1829 NAJIB M MAGEE 23.63
1840 STEVE T MUNOZ 2,479.54
1776 WILLIAM NUNN 1,725.19
1899 BENJAMIN PALMER 75.08
1870 RACHEL PECKHAM 190.16
1766 VICTOR QUINTERO 436.99
1795 ANDRE RIBEIRO 33.07
1777 BRAD RICE 1,396.85
1810 MATTHEW RYAN 537.74
1841 ANDREW C SERRANO 432.96
1762 BRIAN SESSIONS 148.33
1792 DANIEL STROMSKA 1,893.50
1903 DOMENIC VAIASICCA 70.11
1900 NATHANIEL VELICHKO 758.50
1747 IAN WHITE 488.82
Total 20,155.76
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Attachment D
CTO Insurance Rebate—Former Employees
THOMAS ROGERS -
ANA E SPEAR -
DAVID C LOWRY 37.37
TERRY C GALLAGHER -
DAVID V MENDEZ -
DARWIN Y OKAMOTO 5.91
DAVID C CAMERON -
DAVID R WETZEL -
DAVID P LIVINGSTON -
MICHAEL P SHORT -
BRENDAN P BLIGH 36.33
JARED C JOHNSON 15.61
CHRISTOPHER F KIMMA 707.56
NICKOLAS T SKAGGS 181.21
STUART L HOWARD -
CHRISTIAN R POTEAT -
RAMIRO HERNANDEZ 26.94
Sub-Total 1,010.93
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Attachment E
Overtime Pay—Regular Rate
CAMPBELL DUNCAN 613.34
TERRY GALLAGHER 74.70
STUART L HOWARD 0.14
JARED JOHNSON 13.42
DAVID LIVINGSTON 10.06
DAVID LOWRY 23.34
DAVID MENDEZ 124.37
DARWIN OKAMOTO 0.04
MATTHEW PAGE 37.69
CHRISTIAN R POTEAT 40.95
MICHAEL SHORT 39.72
NICKOLAS SKAGGS 17.35
ANA SPEAR 8.35
DAVID WETZEL 323.51
Total 1,326.98
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Attachment F
OPT-IN FORM
Acknowledgement and Acceptance of the Settlement Agreement
I, the undersigned, am a former employee of the City of Campbell. Between March 1,
2017 and my separation date, I was a member of the Campbell Police Officers Association. I
hereby acknowledge that I understand and agree to the terms and conditions contained in this
Settlement Agreement and Release of Claims (Settlement Agreement), as set forth in the above
six(6)pages, and Attachments A through F.
I understand that my representatives, the Campbell Police Officers Association (CPOA),
have negotiated settlement with the City to resolve my claims in this dispute. I understand that
my individual settlement payment amount is part of the City's total payment of$2,337.91 to other
former employees. By accepting my respective settlement amount, I understand and agree that
my acceptance of that amount constitutes a full and complete settlement of all contractual claims
against the City for the contractual overtime policies and practices pertaining to the calculation of
the regular,rate of pay that may exist or have existed for services rendered between July 1, 2017
and my separation date. I understand that my individual settlement payment amount will be
reduced by state and federal taxes and/or other lawful withholding, if any.
I understand that no later than [CINLYrIr; m1 a,t f arb 03:21g
Ito Mz c? ; d I must execute and return this form to the City in order to recover payment
under this Settlement Agreement. I understand the City shall issue my payment no later than
thirty (30) calendar days after PR EMT fgiwn uCJ "m_Fi) if I have timely submitted this form to
the City.
I certify under penalty of perjury that the foregoing is true and correct.
PrintName:
Address:
Signature:
Dated:
12202686.3 CA025-032