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HomeMy WebLinkAbout2025-098 - Resolution RESOLUTION NO.2025-098 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO CUCAMONGA AND THE EXECUTIVE MANAGEMENT EMPLOYEE GROUP WHEREAS, representatives of the City of Rancho Cucamonga (City) and the Executive Management Employee Group have met and conferred pursuant to the provisions of the Meyers- Milias-Brown Act (California Government Code §3500, et seq.) with regard to terms and conditions of employment; and WHEREAS, representatives of the City and the Executive Management Employee Group have agreed upon and presented to this City Council an eighteen-month Memorandum of Understanding effective January 1, 2026, to June 30, 2027; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA HEREBY RESOLVES that said Memorandum of Understanding with the Executive Management Employee Group is hereby approved and the City Manager is hereby authorized to sign said Memorandum of Understanding (Exhibit A) on behalf of the City of Rancho Cucamonga, and the City Clerk to attest thereto. Resolution No. 2025-098— Page 1 of 2 PASSED, APPROVED, and ADOPTED this 3'd day of December, 2025. SMichayor is Michiel, ATTEST: l tt.t LQ-4%/CV CV A im Sevy, City Clerk STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) I, Kim Sevy, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 3rd day of December, 2025. AYES: Hutchison, Michael, Scott, Stickler NOES: None ABSENT: Kennedy ABSTAINED: None Executed this 4'h day of December, 2025, at Rancho Cucamonga, California. of im Sevy, city Clerk Resolution No. 2025-098— Page 2 of 2 Resolution No. 2025-098 MEMORANDUM OF UNDERSTANDING CITY OF RANCHO CUCAMONGA AND EXECUTIVE MANAGEMENT EMPLOYEE GROUP January 1, 2026 —June 30, 2027 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF RANCHO CUCAMONGA, CALIFORNIA AND EXECUTIVE MANAGEMENT EMPLOYEE GROUP SECTION 1: EFFECTIVE DATE The provisions of this MOU are effective January 1, 2026, and shall continue for an 18- month period, ending June 30, 2027. SECTION 2: COST OF LIVING ADJUSTMENT Effective the first full pay period in January 2026, all Executive Management Group covered employees will receive a 2% cost of living adjustment. Effective the first full pay period in December 2026, all Executive Management Group covered employees will receive a 2% cost of living adjustment. Effective the first full pay period in June 2027, all Executive Management Group covered employees will receive a 2% cost of living adjustment. SECTION 3: SALARY STRUCTURE AND SALARY SURVEY Executive Management employees will be assigned to salary ranges, which are no less than 20% below the control point and no more than 15% above the control point. Actual salary within the range is determined by performance, achievement of goals and objectives, or for recent appointments, growth within the position. A. In order to prevent compaction issues, the top step of every Executive Management Covered employee's salary range should be a minimum of 5% above the top step of the available salary range of any subordinate employee as determined by the City Manager. Human Resources will review compaction issues each year taking into account any changes in salary ranges due to increases in control points, top steps and cost of living adjustments. B. Effective the first full pay period in January 2026, adjustments to the bottom and top of the classification salary ranges will occur as outlined below: 1 Animal Services Director 1.54% Benchmarked to Library Services Director Assistant City Manager Benchmarked to 5%above Fire Chief(Salary, uniform, and educ. incentive) Building and Safety Services Director 5.03% Benchmarked to Engineering Services Director/City Engineer City Clerk Services Director 3 40% Community Services Director 9.02% Deputy City Manager Benchmarked to 15%below ACM (salary) Economic Development Director 5.03% Benchmarked to Engineering Services Director/City Engineer Engagement and Special Services Director 5.03% Benchmarked to Engineering Services Director/City Engineer Engineering Services Director/City Engineer 5.03% Finance Director 6.38% Human Resources Director 12.22% Organizational Development Director 12.22% Benchmarked to Human Resources Director Innovation and Technology Director 12.35% Library Services Director 1.54% Planning Director 5.03% Benchmarked to Engineering Services Director/City Engineer Public Works Services Director 9.02% Benchmarked to Community Services Director These changes to the salary ranges do not affect employee pay unless an employee is now paid less than the bottom of the range. In that case, the employee would move up to the new bottom of the range. In addition, those currently at top step would see increases in the first full pay period in February per the MOU MAP process. C. During the first six months of the MOU, the Executive Management Employee Group (EMG) and the City will work cooperatively to agree on an updated salary survey that may, but is not limited to, include new survey cities, surveyed positions, and benchmarking. If EMG and the City do not reach an agreement by the end of June 2026, the existing survey based on accepted past practice will remain in place. Both parties agree to biweekly meetings during that period to work cooperatively on this matter. D. All classifications within the Executive Management Group (EMG) that are not surveyed are benchmarked to a surveyed classification. The benchmarking determines the relationship of the position to the market based on the salary survey. Future classifications may align with an existing benchmark classification, or an additional benchmark classification may be proposed that includes future classifications, as mutually agreed upon by the City and the EMG. If more than half of the survey cities have a comparable position, then benchmarked positions would then be surveyed. The following positions will be surveyed: City Clerk Services Director, Community Services Director, Engineering Services Director/City Engineer, Finance Director, Human Resources Director, Innovation and Technology Director, Library Director. The benchmark classifications are outlined below (surveyed positions are underlined and followed by the position(s) benchmarked to the survey position): Community Services Director— Public Works Services Director 2 Eno Services Director/City Engineer— Building and Safety Services Director, Economic Development Director, Engagement and Special Programs Director, and Planning Director Human Resources Director— Organizational Development Director Library Director—Animal Services Director Example of how benchmarking works: The City conducts the survey of the positions noted above. Let's assume the survey shows the Engineering Services Director/City Engineer is 5% below market. By using the agreed upon benchmarking, the Building and Safety Services Director, Economic Development Director, Engagement and Special Programs Director, and Planning Director would also be found to be 5% below market. This information helps the City and bargaining unit understand where these positions that are not surveyed are in relationship to the marketplace. The benchmarking and the survey are for informational purposes only. SECTION 4: EXECUTIVE BENEFITS Employees designated as Executive Management are not eligible for overtime pay, or compensatory time for working hours over and above the normal daily work schedule. Employees so designated shall be entitled to all benefits provided to general employees and the following: A. Management Leave — One hundred (100) hours per fiscal year. Days off must be approved by appropriate supervisor. In order to compete for talented Executive Staff, the City Manager may provide up to an additional 100 hours of Management Leave to an Executive Management covered employee upon hire. This additional Management Leave must be used within the first three years of the new employee's time with the City. The City does not recognize Management Leave as a property right and does not provide any cash-out provisions should an employee leave City service and still have a positive amount of Management Leave. B. Life Insurance — Life insurance in the amount of 100% of the annual base salary plus $75,000. C. Deferred Compensation — The City pays six percent (6%) of base salary into a 401A plan for employees. Additional voluntary individual contributions by the employee will be matched dollar for dollar by the City up to a limit of 4% of base salary. The matching amount will increase to 6% effective the first full pay period in January 2027. The total contributions for both City and Employee cannot exceed the maximum annual contributions as determined by the Internal Revenue Service. 3 Deferred Compensation shall be automatic with an opt-out provision for new members. The 457 Plan match is paid into the 401A Plan match. D. Automotive Allowance — $500 per month if a City vehicle is not provided. The automotive allowance will increase to $650 effective the first full pay period in January 2027. E. Technology Reimbursement — The City shall provide up to $2,000 each fiscal year to be applied to Technology Reimbursement subject to the following conditions: The City shall provide reimbursement for employee to procure ancillary technology devices and related peripherals in support of their positions up to a maximum of $2,000 per fiscal year amount, employee may receive reimbursement for additional approved expenses in an amount equivalent to any unspent funds remaining from employee's Technology Benefit from the prior fiscal year. In no event shall any employee receive more than $4,000 total reimbursement for technology devices, and related expenses, in one fiscal year. Approved devices and peripherals shall be determined by the Human Resources Department. The City will no longer provide employees a phone stipend or any ancillary technological devices, other than a desktop or laptop computer for his/her workstation as is provided to most City employees for their daily use. Devices procured under the reimbursement program must be made available for work related activities. Reimbursed devices are exclusive to the employee for personal and City related use and may not be transferred to another user for 24 months. F. Health and Wellness— Physical EMG employcos have the option to participate in the Fire District's annual wellness physicals and testing at the City's cost. EMG employees will receive notification of these opportunities, and it is the employee's responsibility to follow-up and schedule their participation if they so choose. SECTION 5: HEALTH INSURANCE A. Level of benefit The City shall provide employee and family health insurance for all represented full-time continuous employees within the bargaining group, subject to the limitation that no such monthly funding by the City shall exceed the following: $1,600 effective the first full pay period in January 2026. $1,700 effective the first full pay period in December 2026. B. Cash in-lieu payment Represented employees who wish to waive medical coverage under a city-paid medical insurance plan, are eligible for this benefit and may opt out of medical insurance, as long as they meet ACA requirements. Employees eligible for this benefit shall receive $300 per month cash in-lieu payment. To be eligible, an employee must provide the following: 4 (1) proof that the employee and all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with the City's plan year to which the opt out applies ("tax family"), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies ("opt out period"); and (2) the employee must sign an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year. The opt-out payment cannot be made, and the City will not in fact make payment if the employer knows that the employee or tax family member does not have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied. C. Affordable Care Act (ACA) Reopener The City may reopen negotiations on the issue of health insurance benefits to address changes to or the elimination of the ACA and in order to avoid penalties or taxes under the ACA or other statutory scheme that may result from an interpretation of the ACA or other statutory scheme by the Internal Revenue Service or other federal agency (including, but not limited to, a revenue ruling, regulation or other guidance) or state agency, or a ruling by a court of competent jurisdiction. These negotiations will not result in a reduction in the amount the City provides for employee health coverage. SECTION 6: RETIREE MEDICAL Subject to the conditions stated below, effective upon a service or disability retirement from City service at or beyond age 55 with 10 consecutive years of City service at the time of retirement, retirees shall be eligible to 100% personally funded without any City contribution, participation in a group health insurance program(s) which is making group health insurance available to the City's retirees and eligible dependent. It is agreed and acknowledged by the parties to this MOU that no representation is or can be made by the City, that such group retiree health insurance is available, or if available, will remain available for any specific future period of time. If no such group health insurance is reasonably available, or if the private carrier(s) terminates such coverage as to the retiree group or any individual group member, the City shall have no obligation/duty to self-fund or otherwise provide insurance or replacement insurance. All premiums for the retiree and/or eligible dependents shall be borne by the retiree. The City shall advance and submit the necessary premiums to the carrier(s), subject to the retiree reimbursing the City not later than 30 calendar days after City payment of the premium. Failure to timely reimburse the City shall result in no further premium payments being made by the City, resulting in termination of insurance coverage. 5 The City's duty to advance said premiums shall terminate at age 65 of the retiree, regardless of whether or not the retiree is eligible for Medicare. City shall advise the group carrier of the insured's status as a retiree or eligible dependent. Coverage eligibility shall then be solely determined by the group insurance carrier(s). It is likely that premium rates for retirees and/or dependents shall be greater than rates for employees. Regardless, retirees shall pay 100% of said rates. If at any time, it is determined by any group health insurance carrier that the City is prohibited from seeking premium reimbursement from a retiree, City affiliation and retiree enrollment in said group insurance plan shall immediately terminate upon rendering of the insurance carrier's decision. In such case, no retiree shall seek reimbursement from the City for any prior premiums paid by the retiree to the City as and for premium reimbursement. SECTION 7: DENTAL INSURANCE The City shall provide a dental insurance plan for all full-time continuous salaried employees and their qualifying dependents. SECTION 8: OPTICAL INSURANCE The City shall provide an optical insurance plan for all full-time continuous salaried employees and their qualifying dependents. SECTION 9: IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT PLAN The City has established an IRS Section 125 Flexible Spending Account Plan managed by a third-party administrator that is open to voluntary participation by members of the bargaining unit. The City agrees to pick up all administrative fees associated with maintaining this program for bargaining unit members(including but not limited to debit card fees.) SECTION 10: VOLUNTARY EMPLOYEE BENEFIT ASSOCIATION (VEBA) The City has established a Voluntary Employee Benefit Association (VEBA) through the California Government Voluntary Employee Benefit Association to assist employees with planning for future health care expenses. Contributions to the Plan shall be made as City contributions through a salary reduction arrangement. All contributions made on behalf of employees through such salary reduction arrangement are made on a pre-tax basis in accordance with IRS provisions. No Employer contributions are to be made to the plan. At the discretion of the Executive Management Group, contributions may be amended once per year provided that such amendment is permitted by IRS regulations and in conformity with the Plan Document. 6 SECTION 11: RETIREMENT BENEFIT Unit members who do not meet the definition of "new member" under the California Public Employees' Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as "classic members") are enrolled in either the CaIPERS retirement plan commonly referred to as the 2.5% at age 55 retirement plan ("Tier 1"), or in the 2% at age 55 retirement plan ("Tier 2") and shall be provided the benefits as described below: A. Tier 1 - Employees Hired Before July 4, 2011 § 21354.4 2.5% at 55 Full Formula § 21574 4th Level 1959 Survivor § 20042 1 Yr. Final Compensation Employees shall pay the full eight percent (8%) of their PERSable compensation towards the CaIPERS member contribution. B. Tier 2 - Employees Hired on or After July 4,2311 § 21354.4 2% at 55 Full Formula § 21574 4th Level 1959 Survivor § 20042 3 Yr. Final Compensation Employees shall pay the full seven percent (7%) of their PERSable compensation towards the CaIPERS member contribution. C. It is understood that all contributions paid by the employee as described in Parts A through B above shall be calculated based upon the full base salary of the employee, plus any additional PERSable compensation, The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(1)(F) as Value of Employer-Paid Member Contributions. The parties also agree that the City has no additional obligation or costs should CaIPERS, the State or the IRS determine otherwise. The City adopted a resolution providing that all employee CalPERS contributions shall be deducted on a pre-tax basis to the extent permitted by law or IRS regulation. All employee payments of the employer share are done pursuant to Government Code Section 20516(f) There shall be no sunset date to any provision in Section 11. 7 D. PEPRA Employees hired on or after January 1, 2013` The California Public Employees) Pension Reform Act of 2013 (PEPRA) - As it may from time to time exist, the PEPRA shall in its entirety be given full force and effect. Any provision in this MOU which contradicts any provision of the PEPRA shall be deemed null and void, with the contrary PEPRA provision(s) being given full force and effect. Therefore, no provision of PEPRA shall be deemed to impair any provision of this MOU or any MOU, Agreement, Rule or Regulation predating this MOU. PEPRA includes, but is not limited to, the provisions described below: *Unit members hired on and after January 1 , 2013, deemed to be a "new member" as defined in Government Code § 7522.04, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said "new member" is enrolled, rounded to the nearest quarter of one percent (1%), or the current contribution rate of similarly situated employees, whichever is greater. Unit members who are "new members" and miscellaneous employees on and after January 1, 2013, shall be enrolled in the two percent (2%) @ 62 retirement formula (Govt. Code§ 7522.20). Unit members who are "new members" on and after January 1, 2013, shall have "final compensation" measured by the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months (Section 7522.32.), and their retirement benefits shall be calculated based on "pensionable compensation" (Section 7522.10) rather than "compensation earnable" (Section 20636). E. In addition, the City has adopted the PARS Retirement Enhancement Plan generally described as .5% (one-half percent) at 55 or at 60, depending upon the employee's hire date, for all miscellaneous employees hired on or prior to December 31, 2012. To be eligible, employees must be at least age 56, have ten (10) years of full-time continuous service and retire from the City. This benefit will be paid to qualified retirees in addition to any CaIPERS benefits to - which they are entitled. 8 SECTION 12: VACATION All full-time employees shall, with continuous service, accrue working hours of vacation monthly according to the following schedule. In order to compete for talented Executive Staff, the City Manager may provide an accrual rate for new Executive Management Group covered employees up to the equivalent of a ten-year employee upon hire. This is important as many experienced candidates have significant time in the public sector and might have to begin at a much lower accrual rate than they receive at their current Agency. Length of Hours Annual Service Accrued Hours In Years Per Pay Period Accrued 1-3 3.846 100 4 4.230 110 5 4.615 120 6-8 5.000 130 9 5.384 140 10 5.769 150 11-13 6.153 160 14 6.538 170 15-19 6.923 180 20+ 7.962 200 SECTION 13: VACATION BUYBACK Annually, any employee that wants to have the City buy back vacation hours shall make an irrevocable election to do so. The irrevocable election shall be submitted in writing to the City's Human Resources Department on or before December 15 and shall indicate the number of hours of vacation that the employee expects to earn in the following calendar year that the employee wants the City to buy back, with a minimum buy back of 20 hours up to a maximum of 200 hours. This buy back shall occur twice annually, in June/July (between the last payday in June and the first pay day in July) and December (between the first and second payday of the month), and the employee must indicate the total amount of hours they want paid out in June/July and in December. Regardless of the number of hours requested to be cashed out at either time, the most the City can cash out is the number of hours accrued and available in that calendar year to date. Employees must maintain a minimum of 40 hours of accrued vacation subsequent to any payment of vacation buyback time. SECTION 14: VACATION CAP Effective December 2020, and every subsequent December, any employee with more than 1,040 hours of accrued vacation time will have their accrued vacation lowered to 1,040 hours and the cash equivalent of those hours above 1,040 will be deposited into their VEBA 9 account in April of the following year. Example: Joe has 1,140 hours of accrued vacation in December 2020; his accrued vacation is lowered to 1,040 hours and the cash equivalent of 100 hours of vacation time is transferred to his VEBA account in April 2021. SECTION 15: HOLIDAYS Employees receive the following 14 holidays. All full-time continuous salaried employees shall be compensated at their regular rate for these days: (1) July 4 Independence Day (2) First Monday of September Labor Day (3) November 11 Veteran's Day (4) Fourth Thursday of November Thanksgiving Day (5) Day following Thanksgiving (6) December 24 Day preceding Christmas (7) December25 Christmas Day (8) January 1 New Year's Day (9) Third Monday of January Martin Luther King's Birthday (10) Third Monday of February President's Day (11) Last Monday of May Memorial Day (12) Three discretionary days may be taken by an employee at his/her convenience subject to approval of the supervisor. Days may not be carried over from one fiscal year to the next. Whenever a holiday falls on a Sunday, the following Monday shall be observed as a holiday. Whenever a holiday falls on a Friday or Saturday, the preceding Thursday shall be observed as the holiday. When a holiday combination occurs (Thanksgiving, Christmas, etc.) where two (2) consecutive days are holidays and it would result in the City Hall being open to serve the public only two (2) days during the week, only one (1) of the holidays will be observed and the other holiday will become a floating holiday. For example, for Thanksgiving, Thursday will be observed as the regular holiday; however, Friday will become a floating holiday to be used at a later date. For Christmas, Wednesday will be observed as the regular holiday; however, Tuesday (the day preceding Christmas) will become a floating holiday to be used at a later date. In the instance of Thanksgiving, Christmas or New Years, employees will have until June 30 to use those floating holidays accrued between Thanksgiving and New Year's. Also, those days will not accrue as floating holidays until the actual holiday has occurred. Each year the City will designate which days will be observed and which are floating holidays. Employees who are eligible to bank a holiday have until June 30 (end of fiscal year) to use the 10 banked holiday earned from July 1 through April 30. Any holiday banked in May and June; employees have until September 30 to use the banked holiday. SECTION 16: HOLIDAY FACILITY CLOSURE During the term of this MOU, there will be holiday facility closures, certain City facilities may close in conjunction with the Christmas and New Year's holidays. Closure dates for City facilities shall be determined by the City in order to balance the impact on public services. The City will strive to provide a schedule of Holiday Facility Closures at least six months or more in advance of the closure. During a holiday closure, affected represented employees may take paid leave from holiday, management leave, vacation accruals, personal leave, or use unpaid leave. When holiday closures are implemented by the City, Section 15's provision regarding consecutive holidays shall not apply. SECTION 17: BEREAVEMENT LEAVE When a death occurs in the family of a full-time employee, the employee shall be granted up to 80 hours of bereavement leave with pay. A death certificate or other acceptable evidence may be required by the City Manager or designee before leave is allowed. Family members are defined as follows: employee's spouse or domestic partner, employee's parents, employee's grandparents, employee's children, employee's siblings, employee's grandchildren, employee's great-grandchildren, employee's great grand-parents, employee's spouse or domestic partner's parents, employee's spouse or domestic partner's grandparents, brother-in-law, sister-in-law, employee's spouse or domestic partner's children, employee's spouses grandchildren, employee's spouse or domestic partner's great-grandchildren, employee's spouse or domestic partner's great- grandparents, or a blood relative residing with employee. The City Manager or designee shall approve such bereavement leave. (References to domestic partner refer to registered domestic partners, as defined by California Family Code Section 297). Employees are eligible for an additional 40 hours of bereavement leave in addition to the currently provided 80 hours when the bereavement leave is related to the employee's spouse or domestic partner, employee's parents, employee's children, son-in-law, daughter-in-law, or employee's siblings, employee's spouse or domestic partner's parents, employee's spouse or domestic partner's children, or a blood relative residing with the employee. An employee who utilizes bereavement leave shall notify their supervisor of the intent to use such leave. In accordance with AB1949, the bereavement leave must be completed within three (3) months of the date of death but need not be taken consecutively. SECTION 18: PERSONAL LEAVE Employees can use up to 40 hours of accrued sick leave, vacation, management leave or holiday time as personal leave. These 40 hours can be used incrementally (i.e., 1hour, 1/2 hour) throughout the fiscal year. Use of this time is for situations requiring the employee's attention and needs to be cleared with their supervisor when using this time. 11 SECTION 19: SICK LEAVE All full-time employees shall, with continuous service, accrue 120 hours of sick leave annually. New employees begin employment with 60 hours of sick leave. Sick leave accrual (10 hours/month) begins on the first day of the seventh month of employment. A. SICK LEAVE USAGE 1. For the diagnosis, care, or treatment of an existing health condition or preventative care for an employee, or an employee's family member. Family member shall include: a child (including a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis), regardless of the child's age or dependency status; spouse or registered domestic partner; parent (including biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee's spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child); grandparent; grandchild; great- grandchild; sibling; or designated person. A designated person means a person identified at the time the employee requests sick leave. Employees may designate one person per 12-month period for paid sick days. 2. To obtain any relief or services related to the employee or a family member, including a designated person, being a victim of a qualifying act of violence, including, but not limited to domestic violence, sexual assault, or stalking including the following with appropriate certification of the need for such services: a temporary restraining order or restraining order; or other injunctive relief to help ensure the health, safety or welfare of themselves or their children. 3. To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking. 4. To obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence, sexual assault, or stalking. 5. To obtain psychological counseling related to an experience of domestic violence, sexual assault, or stalking. 6. To participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation. The above is not an exhaustive list, all other purposes as allowed by applicable law are allowed. References to the employee using sick leave for qualifying acts of violence apply when the employee, the employee's family member, or the designated person is the victim. Should the City suspect that there is an abuse of sick leave by the employee, the City may require that the employee submit to Human Resources a physician's certificate to support the absence. 12 SECTION 20: SICK LEAVE BUYBACK AND EARLY RETIREMENT NOTIFICATION INCENTIVE Employees within the bargaining unit who terminate their city employment, the City will buyback 150 hours of sick time if they provide at least four weeks' written notice of their intent to separate. Employees who provide early notification of their intent to retire from the City, will receive additional accrued sick leave hours in accordance with the schedule below (this is not cumulative, depending on the notice provided employees get an additional 100, 75, 50 or 20 hours of sick leave buyback). Notification must be given in writing to Human Resources in the form of an irrevocable letter of resignation with intent to retire. Notification of at least twelve 100 hours additional sick leave buyback ** months (365 calendar days') Notification of at least six months 75 hours additional sick leave buyback (180 calendar days') Notification of at least four months 50 hours additional sick leave buyback (120 calendar days') Notification of at least two months 20 hours additional sick leave buyback (60 calendar days') *Employees must have leave available in order to be eligible for the additional buyback. Use of vacation and management leave during the time between the notification and the employee's retirement date will not be counted toward the required notification periods in the schedule above. SECTION 21: NATAL AND ADOPTION LEAVE WITHOUT PAY The City shall provide employees up to four (4) months natal and adoption leave for the birth or adoption of a child including the paid leave as outlined below; such leave shall be pursuant to the provisions of the California Pregnancy Disability Act ("PDA"; California Government Code section 12945), if applicable. The City's PDA policy is incorporated herein by reference. Employees on this leave of absence without pay beyond the four- month period will be responsible for the payment of medical, dental, and optical premiums to keep the coverage in force during the leave of absence. SECTION 22: NATAL AND ADOPTION LEAVE WITH PAY Employees within the bargaining unit are granted up to 120 hours of natal and adoption leave with pay for the birth or adoption of a child, however, use of the 120 paid hours does not extend any time charged under FMLA or CFRA. Any paid time required beyond this initial 120 hours must be charged to sick leave, vacation, compensatory or floating holiday time. 13 SECTION 23: WORKERS COMPENSATION LEAVE Any employee covered herein who is receiving disability payments under the "Workers Compensation Act of California" for on-the-job injuries sustained while engaged in the performance of duties of any such City position, shall receive from the City during the first three (3) months of such disability absence, payments in an amount equal to the difference between the disability payments received under the Workers Compensation Act and the employee's full salary. Such payments by the City should be made without any deduction from accrued sick leave benefits. The City's obligation for such payments shall commence on the first day of such disability absence. In the event the employee's disability absence should exceed three (3) months, an employee shall be allowed to supplement the Workers Compensation benefit received under State law with available accrued sick leave, accrued vacation leave, or accrued compensatory time. The total number of leave hours, along with the Workers Compensation benefit, shall not exceed the employee's base pay for each day of the leave. For this purpose, accrued leave hours can be used in one-hour increments. SECTION 24: MILITARY LEAVE Employees required to serve military leave will be compensated pursuant to the Military and Veterans Code. To qualify for compensation the military orders must be submitted to the supervisor prior to their tour of duty and must be attached to the timecard for that pay period. SECTION 25: MILITARY SERVICE BUY BACK Employees have the option for military service buy back at the employee's expense. SECTION 26: TUITION REIMBURSEMENT FOR APPROVED COLLEGE/ UNIVERSITY COURSES Reimbursements by the City of the following enumerated college and/or university course expenses shall not exceed$7,000 during any fiscal year. Eligibility for said reimbursement in an amount not to exceed $7,000 in any one fiscal year shall be contingent upon a determination by the employee's department head or his designee that all of the following conditions precedent exists: A. Expenses shall be incurred as regards coursework undertaken at a college or university that is licensed/accredited by the State of California, and Colleges and Universities accredited by any of the six (6) regional higher education accreditors in the United States. The applicant for reimbursement shall present to the Human Resources Department documentation prepared by the accredited/licensed college or university which evidences the applicant's receipt of a grade of "C" or "pass" in a pass/fail class. As regards each class for which reimbursement is sought (where an employee is simultaneously enrolled in multiple approved classes and does not receive a "C" or "pass" in any one or more of such classes, the amount of expenses subject to City's reimbursement shall be reduced and/or 14 as appropriate, pro-rated to reflect no reimbursement being made for expenses related to classes where the minimal grade was not received). B. Eligibility for reimbursement for said expenses shall be confined to either: 1) those courses that in and of themselves consist of curriculum which is predominately related to the development of skills reasonably anticipated by the City to enhance the applicant's job performance (by means of a non-inclusive example only, art classes would not qualify for reimbursement); or 2) where the employee has declared a major that is job-related as set forth in this Section C, to those classes which must be completed as a condition precedent to successful completion of the course of study in the selected major. C. Eligibility for reimbursement upon completion of coursework shall be predicated upon the employee's department head or their designee, making a written determination prior to the affected employee's enrollment in the course(s) for which reimbursement is later sought, that the coursework is offered by an accredited college or university and that the above-described job nexus does exist. The determination of the City Manager or their designee in such regards shall be final. D. The costs which shall be subject to reimbursement are limited to the following: 1) tuition; 2) books; 3) supplies; 4) parking; and 5) laboratory. In addition to all other conditions precedent to reimbursement set forth in this section, prior to reimbursement being approved, receipts shall be provided to the Human Resources Department and shall evidence each expenditure for which reimbursement is sought. SECTION 27: CERTIFICATIONS AND RECERTIFICATIONS The City will pay for the cost of any required certifications or recertification required of employees to maintain their positions. Required certifications must be outlined in an employee's specification classification. Deputy City Managers with the approval of the City Manager can add to but not eliminate certifications and recertifications that Departments will cover the costs for employees to maintain. Any additions by a Deputy City Manager must be applied equally to all employees in that classification. SECTION 28: RECOVERY OF PROFESSIONAL DEVELOPMENT COSTS The City may pay the cost of training and certificate programs, up to $10,000, for individual employees that are not required to maintain their positions, with the goal of providing additional development opportunities for employees. Employees can request that the City pay the cost of such training and certifications. The Department Director and/or Deputy City Manager, with the approval of the City Manager, may approve these requests, subject to budget availability. If an employee requests participation in a training or certificate program with a registration cost of $2,000 or more, the employee will be required to repay the cost of that training or certificate if they leave City employment within 4 years of the registration for that program. One-quarter of the amount owed is forgiven each year. The employee must sign an agreement indicating that 15 any outstanding amount can be deducted from their final paycheck upon separation any outstanding amount is due at separation. This benefit does not pertain to professional conferences related to an employee's ongoing continuous learning, which are routinely budgeted within a departments budget. SECTION 29: ANNUAL PERFORMANCE REVIEW MODIFICATION Annual performance reviews have been replaced with professional development plan and at least 2 ongoing coaching check-ins per year. Training as well as handouts will be provided to employees and supervisors to assist with the professional development plan and yearly coaching conversations. The City will review the form(s) and process with a committee that includes EMG participation at least every three years to assure their usefulness for employees and supervisors. New EMG employees are eligible to receive a merit increase during their first year with the City and promoted EMG employees are eligible to receive a merit increase during their first six months in their new role. They would then be eligible for the development plan review increase as long as their first-year or six-month anniversary respectively was prior to the end of November (ex. A New employee hired in March through November would be eligible for the upcoming February increase. An employee hired in December to February would have to wait for the following February for another increase). Each November, employees and their supervisors will work together to develop the Professional Development Plan which must be completed by the employee and supervisor by the end of the second full week in December of every year. Plan timeline: • No later than the first and second Week of November— Employee fills out their"My Action Plan." • Third and fourth week of November— Employees and Supervisors work together on the Plan, and Supervisors review the plans with their Managers or who their Department determine. • Remainder of November through second week of December - Supervisors finalize the Plan taking into account any input which their supervisors provided and go over the Plan with the employee before submittal. Upon submission of the completed Plan in December (as outlined in the timeline above), employees not at top step are eligible for a merit increase of 5%, but no greater than top step. The change will be reflected in the first full pay period the following February. Employees at the top step of their salary range will be eligible to receive a stipend of $500 (non-PERSable), paid in conjunction with the check from the first full pay period in February. There is no retroactivity for Plans not timely submitted. Employees on a performance improvement plan as of December will not be eligible for a merit increase or stipend. 16 SECTION 30: SEVERANCE All Executive employees are at-will employees who may be terminated with or without cause, and who have no appeal rights. Executive employees with over one (1) year of continuous employment with the City from July 1, 2022, who are terminated, will be eligible to receive severance pay of 90 calendar days of their base salary if the terminated employee voluntarily executes a Compromise and Release Agreement, which includes a waiver of all claims against the City and/or challenges to their termination, within ten (10) calendar days of receiving notice of termination. Executive employees with over five (5) years (60+ months) of continuous employment with the City from July 1, 2022, who are terminated, will be eligible to receive severance pay of 120 calendar days of their base salary if the terminated employee voluntarily executes a Compromise and Release Agreement, which includes a waiver of all claims against the City and/or challenges to their termination, within ten (10) calendar days of receiving notice of termination. Employees are not required to execute the Compromise and Release Agreement since it is an agreement, and its execution is totally voluntary on the part of the employee. However, it is a condition of receiving the severance pay. The severance pay is consideration for the Agreement. SECTION 31: SENIOR DEPARTMENT HEAD ADDITIONAL DUTIES PAY Department Heads who work and provide guidance during the transition of a new Department Head within their Department are eligible to receive $2,600 a year ($100 per pay period) in Senior Department Head additional duties pay for taking on the added responsibilities of assisting the new Department Head while retaining the duties of their current position. SECTION 32: 4/10 WORK WEEK City Hall operates on a 4/10 work week, hours 7:00 a.m. to 6:00 p.m., Monday through Thursday. Remote facilities operate on a 40-hour work week of varying days and times. SECTION 33: DIRECT DEPOSIT All new bargaining unit members are required to enroll in direct deposit. Vacation buyback payouts can be by paper check. SECTION 34: BI-LINGUAL PAY Employees who qualify for bi-lingual pay will be provided $50.00 per month. 17 SECTION 35: TEAM RC APPAREL The City will provide all bargaining unit members a Team RC shirt at least once per fiscal year at a cost not to exceed $50. SECTION 36: MANDATORY USE OF MULTI-FACTOR AUTHENTICATION TECHNOLOGY The City will require the use of multi-factor authentication technology by employees for access to all City systems including Workday. This would include the placement of such technology on all devices employees use to access City systems including personal cell phones. SECTION 37: ADOPTION OF MOU This memorandum between the City and the Executive Management Group was adopted on December 3, 2025. For the City of Rancho Cucamonga: For the Executive Management Group: l2/ hsjaS Date Date Elisa C. Cox Jenr. - un C acia City Manager eecccutiv• M. gement Group Representative Zac eig ors Executive Management Group Representative 18