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21-0601_ORANGE, COUNTY OF_Agenda Report_F2bCity of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Ken Al-Imam, Chief Financial Officer PREPARED BY: Michelle Short, Finance Manager DATE: June 1, 2021 SUBJECT: Budget for Fiscal Year 2021-22, including: Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28; Measure M2 Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28; Fiscal Year 2021-22 Appropriations Limitation; Property Tax Rate for 2017 Taxable General Obligation Refunding Bonds (Measure Y) for Fiscal Year 2021-22; Reserve Targets; Investment Policy; First Amendment to Five-Year Agreement with County of Orange for Law Enforcement Services; Memoranda of Understanding with Employee Associations; Personnel Rules and Regulations; Personnel Classification and Compensation Plans; Creation of Environmental Programs Analyst Classification; and, Professional Services Agreement with Mercy House RECOMMENDATIONS: 1. Adopt the Resolution that approves the Operating and Capital Budget for Fiscal Year 2021-22, after giving effect for the following adjustments: the results of recently completed negotiations regarding employee compensation, the advancing of $300,000 of Stonefield Park Synthetic Turf Project funds from Fiscal Year 2022- 23 to Fiscal Year 2021-22, and any other adjustments as directed by City Council, the results of which are to be incorporated into the budget; 2. Adopt the Resolution that approves the Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28; 3.Approve the Measure M2 Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28; 6/1/2021 F2b City Council Agenda Report June 1, 2021 Page 2 of 11 4. Adopt the Resolution establishing the Fiscal Year 2021-22 Appropriations Limitation; 5. Adopt the Resolution establishing the property tax rate for the 2017 Taxable General Obligation Refunding Bonds (Open Space Measure Y) for Fiscal Year 2021-22; 6. Approve the General Fund reserve targets and reserve allocations presented at the budget workshop on May 4, 2021, and as set forth herein; 7. Approve the 2021-2024 Memorandum of Understanding between the City and the Classified Employees Association; 8. Approve the 2021-2024 Memorandum of Understanding between the City and the Management and Professional Employees Association; 9. Approve the revised Personnel Rules and Regulations; 10. Adopt a Resolution approving the 2021-2024 Salary Tables and the creation of an Environmental Programs Analyst classification; 11. Approve the City’s revised Investment Policy; 12. Approve the First Amendment to the Five-Year Agreement with the County of Orange for the provision of law enforcement services; and, 13. Approve and authorize the City Manager to sign the Professional Services Agreement with Mercy House. EXECUTIVE SUMMARY: The appropriations set forth in the accompanying resolutions reflect the proposed Operating and Capital Budget for Fiscal Year 2021-22 and the proposed Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28. These budget resolutions provide total operating appropriations of $69.2 million and total capital appropriations of $17.3 million. DISCUSSION/ANALYSIS: Operating and Capital Budget On May 4, 2021, the City held a workshop in order to review with the City Council the proposed budget for Fiscal Year 2021-22. At the workshop, the City Council received a detailed staff presentation and directed staff to adjust the proposed budget to reflect the final adjustment of the County’s proposed cost for the delivery of law enforcement services for Fiscal Year 2021-22 and for the cost of the proposed amendment to the scope of service to be provided by Mercy House, as further described below. City Council Agenda Report June 1, 2021 Page 3 of 11 The proposed budget resolution does not reflect the effects of the proposed employee compensation changes that are presented for consideration as a part of this agenda report. If approved, the compensation changes associated with new labor agreements will be reflected in the final budget of the City for Fiscal Year 2021-22. The proposed employee compensation changes are expected to increase General Fund appropriations by approximately $150,000, if approved by the City Council. After taking the proposed compensation changes into account, proposed budgeted General Fund operating revenues will exceed proposed budgeted operating expenditures (excluding capital project fund transfers) by $990,000. A summary of the Budget Resolution (Attachment 1) for the Fiscal Year 2021-22 Operating and Capital Improvement Budget is set forth below: Seven-Year Capital Improvement Program The Seven-Year Capital Improvement Program presented to the City Council at the Fiscal Year 2021-22 budget workshop provided an update of the program to reflect revised revenue projections and an advancement of highest priority projects to the extent permitted by available funding. Attachment 2 presents the Resolution regarding the Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28, summarized as follows: Operating Expenditures Capital Expenditures Transfers Between Funds (1)Total General Fund 30,092,695$ (565,000)$ 388,835$ 29,916,530$ Other Governmental Funds 4,296,094 10,387,770 700,000 15,383,864 Enterprise Funds 25,450,450 7,842,000 7,707,415 40,999,865 Internal Service Funds 9,331,624 (333,736) - 8,997,888 Total All City Funds (2)69,170,863$ 17,331,034$ 8,796,250$ 95,298,147$ Fiscal Year 2021-22 (1) Transfers between funds are balanced by fund types, general and governmental funds and (2) Totals do not include the San Juan Public Financing Authority and San Juan Capistrano Housing Authority (See Exhibit A to the Resolution). City Council Agenda Report June 1, 2021 Page 4 of 11 In the proposed Fiscal Year 2021-22 Capital Budget, staff proposed focusing street funding on the City’s highest priority street rehabilitation project, the Camino Capistrano Pavement Rehabilitation Project. This project would resurface and reconstruct Camino Capistrano from Avenida Aeropuerto to the Costco entrance. The total estimated cost for the Camino Capistrano Pavement Rehabilitation Project is $4.0 million, of which $1.8 million is proposed to be funded in Fiscal Year 2021-22. Pursuant to City Council direction, staff is currently engaged in an assessment of street conditions and funding alternatives, which is anticipated to be presented to the Council for consideration later this year. The Fiscal Year 2021-22 Proposed Capital Budget includes $3.0 million of funding for the Skateboard Park Project (CIP 21201), which is scheduled to be constructed in Fiscal Year 2021-22. No changes have been made to the funding previously provided in the City’s seven-year CIP for water and sewer projects, since the City is in the process of transferring its water and sewer utility systems to the Santa Margarita Water District. The City will coordinate with the Santa Margarita Water District on the water and sewer capital projects set forth in the Seven-Year Capital Improvement Program as the City progresses toward the annexation, which is expected to occur in Fiscal Year 2021-22. A modified version of the Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28 has been included at Attachment 3 in order to meet the requirements of the Measure M2 program of the Orange County Transportation Authority. This version of the Seven-Year Capital Improvement Program includes costs associated with the City’s senior mobility program and summer trolley program that are not capital expenditures for budgetary purposes. Approval of this document is required in order to continue to receive Measure M2 transportation funds. One of the projects in the Seven-Year Capital Improvement Program provided to City Council at the budget workshop and reflected in Attachment 2 is the Stonefield Park Synthetic Turf Project. This project would replace the existing natural turf playing surface Project Fiscal Year (1)Expenditures 2021-22 17,331,034$ 2022-23 10,454,250 2023-24 15,009,000 2024-25 9,468,000 2025-26 8,356,000 2026-27 2,172,000 2027-28 2,190,000 TOTAL 64,980,284$ (1) The Fiscal Year 2021-22 project expenditures have been appropriated as part of the 2021-22 Operating and Capital Budgets. City Council Agenda Report June 1, 2021 Page 5 of 11 with synthetic turf material. Stonefield Park is located on land owned by the Capistrano Unified School District (CUSD) and City staff is currently working with CUSD on a potential partnership to design and construct the project under a long-term Joint Use Agreement. Staff recommends that $300,000 of project funding currently scheduled for Fiscal Year 2022-23 be advanced to Fiscal Year 2021-22 so that design work can be initiated as soon as a Joint Use Agreement is in place. This would allow for a FY 2022-23 construction schedule and create an opportunity to evaluate and pursue any grant and private donation funding in order to reduce the amount of Park In-lieu Fee funds that are needed for the project. Establishment of the Appropriations Limitation for Fiscal Year 2021-22 Article XIII of the California State Constitution requires that local governments establish a limitation on the amount of proceeds of taxes that may be appropriated for spending. It is the City’s responsibility to calculate the annual appropriations limit using a methodology established by state statute. The previous fiscal year’s limit is increased by a unifying factor that takes into account changes in population as well as inflation. For the inflation factor, cities may choose either the change in the measurement of California Per Capita Personal Income (CCPI) or the change in the amount of the City’s assessed valuation that is due to non-residential construction. For the population factor, cities can select either the change in population for the city or that of the county. The choice of each of these factors is made by an annual election of Council by means of a resolution. Based on the foregoing methodology set forth in state law, the appropriations limitation for Fiscal Year 2021-22 has been determined to be $88,373,720 (Exhibit A of Attachment 4). The City's budgeted expenditures for Fiscal Year 2021-22 that are funded by proceeds of taxes as defined by state law are significantly below the limit and, therefore, the City’s Fiscal Year 2021-22 Budget is in compliance with the State Constitution with respect to this matter. Approval of Property Tax Rates for Voter-Approved Bonded Indebtedness On November 4, 2008, voters approved Measure Y, which provided $30 million in bond funding for the acquisition, preservation, enhancement and improvement of land to protect and preserve open space, natural areas, creeks and streams, historic areas, undeveloped hillsides, natural ridges and to provide additional recreational amenities, such as bike and walking trails, equestrian facilities, parks and sports fields. Pursuant to Measure Y, $30 million in bonds were issued under this measure in January 2010. In February 2017, the City issued taxable refunding bonds to refinance the original bonds. The City must annually establish the ad valorem tax rate that is necessary to fund the annual installments of principal and interest that are associated with voter-approved bonded indebtedness (general obligation bonds). The calculation for this tax rate takes into account the debt service requirements for the year in question, as adjusted for funds held in the Debt Service Fund, in order to determine the amount that needs to be collected from the ad valorem tax levy to fully fund debt service on the general obligation bonds of the City. Once that amount is determined, it is then divided by the estimated amount of secured assessed valuation applicable to the fiscal year in question to arrive at the tax City Council Agenda Report June 1, 2021 Page 6 of 11 rate for the levy. Upon approval by the City Council, the County of Orange is notified of the approved rate for placement on the property tax roll. The ad valorem tax rate for the City’s voter-approved debt for Fiscal Year 2021-22 is $0.02010 per $100 of assessed valuation (Attachment 5), a rate comparable to that of the prior year. Investment Policy As a part of the financial review associated with the budget process, the Chief Financial Officer and the City’s investment advisor (Chandler Asset Management) evaluated the City’s investment policy. Attachment 6 provides the proposed revised investment policy that resulted from this evaluation, with proposed changes tracked. Attachment 7 provides a clean version of the proposed revised policy. The most significant change was to remove supranational securities as an allowable investment under the investment policy. Although permitted by state law, the City currently holds no supranational securities. Supranational securities are highly rated securities issued by multinational organizations that are backed by capital pledges from participating governmental entities, including the U.S. Treasury. Due to their complexity, staff recommends their exclusion from consideration inasmuch that alternative investments currently authorized by the City’s investment policy provide similar yields. Reserve Targets Pursuant to direction provided by City Council to staff on May 4, 2021, the City has revised its General Fund reserve targets and reserve allocations for the General Fund as set forth below and as presented in Exhibit A of Attachment 1: Reserve Proposed Reserve Targets Proposed Allocation of Available Funds Cash Flow $5,000,000 $5,000,000 Economic Uncertainty 10,000,000 10,000,000 Contingencies 5,000,000 3,500,000 Capital Replacement/City Hall Improvements 2,500,000 2,500,000 Eastern Open Space Deficit 2,500,000 2,500,000 Total $25,000,000 $23,500,000 Law Enforcement Services Agreement with County of Orange The Five-Year Law Enforcement Services Agreement (Agreement) with the Orange County Sheriff’s Department (OCSD) was initiated on July 1, 2020 and will terminate on June 30, 2025 (Attachment 8). This Agreement requires that the County submit a proposed staffing level and financial obligation update each year to the City for approval. OCSD has submitted the First Amendment to the Agreement for Council approval for the period from July 1, 2021, to June 30, 2022 (Attachment 9). The cost of law enforcement services for Fiscal Year 2021-22 as estimated in the Amendment is $11,292,313, which City Council Agenda Report June 1, 2021 Page 7 of 11 is a 4.4% increase compared to the Fiscal Year 2020-21 revised estimate of $10,816,378. The amount budgeted for contracted law enforcement services as set forth in the Fiscal Year 2021-22 Adopted Budget includes a discount of 0.25%, or $28,000, for timely monthly payment and provides sufficient funding for this amendment. The Fiscal Year 2021-22 direct staffing level of 30 full-time OCSD employees is the same as that for Fiscal Year 2020-21. The following chart depicts the City’s dedicated law enforcement staffing resources: QUANTITY DEDICATED POSITIONS 1 Captain 5 Sergeant (4 Patrol + 1 Administrative) 2 Investigator 15 DS II Patrol 2 DS II Motorcycle 1 DS II Community Support 1 DS II - DET DS II - Extra Help 27 Subtotal Safety 2 Community Services Officer 1 Crime Prevention Specialist 3 Subtotal Professional 30 TOTAL The City also shares law enforcement resources with other South Orange County cities. In Fiscal Year 2021-22 the City will share resources of 18.70 full-time employees. The following chart depicts the City’s shared law enforcement staffing resources: QUANTITY REGIONAL / SHARED STAFF % ALLOCATION 0.6 Traffic - Sergeant 5.83% 4 Traffic - Deputy Sheriff II 5.83% 2 Traffic - Investigative Assistant 5.83% 1 Traffic - Office Specialist 5.83% 0.3 Auto Theft - Sergeant 4.4% 2 Auto Theft - Investigator 4.4% 1 Auto Theft - Investigative Assistant 4.4% 1 Auto Theft - Office Specialist 4.4% 1 DET - Sergeant 8.08% 1 DET - Investigator 8.08% 2 Courts - Investigative Assistant 18.78% 1 Motorcycle Sergeant + MDC 16.9% 16.90 TOTAL In addition to these resources, OCSD provides the City with specialized resources, such as Special Weapons and Tactics (SWAT), Mounted Enforcement Units, Homicide Investigation Unit and Specialized Investigation Units focused on areas such as economic crimes and gang suppression. City Council Agenda Report June 1, 2021 Page 8 of 11 Staffing The budget resolution for Fiscal Year 2021-22 reflects all of the cost savings realized by the Fiscal Year 2020-21 reorganization and employee furlough. The reorganization included layoffs, an elimination of vacant positions, a combination of positions and the sharing of positions. As a result, the City was able to reduce its full-time equivalent (FTE) employees from 89.51 FTE to 79.67 FTE. Temporary Part-time Intern Position The proposed budget resolution reflects the addition of a temporary part-time Administrative Intern to assist the Public Works Department with administrative tasks. Environmental Programs Analyst Classification Staff is recommending the creation of a new job classification, Environmental Programs Analyst, that would be funded once the water and sewer utilities transfer is effectuated and would replace the existing Senior Management Analyst position that is currently in the Utilities Department. This new classification would be set equal to the Senior Management Analyst classification and have responsibility for the City’s solid waste and recycling programs, as well as other Public Works programs related to the environment. Upon the effective date of the water and sewer utilities transfer, this position would be funded by the Forfeited Construction and Demolition Fund and would have no General Fund impact. Employee Compensation The City has concluded negotiations regarding a proposed three-year labor agreement with each of the City’s two employee associations: the Classified Employees Association (CEA) and the Management and Professional Employees Association (MPEA) (Attachments 10 and 11). Agreement on proposed revised Personnel Rules and Regulations (Rules) has also been reached (Attachment 12). Finally, proposed salary tables that reflect the cost of living adjustments agreed to by the parties are included with this staff report, and a proposed resolution approving the tables and creating the aforementioned Environmental Programs Analyst classification is recommended for adoption (Attachment 13). Under the requirements of the Myers-Milias Brown Act, which governs collective bargaining in California, City representatives and representatives from CEA and MPEA began meeting in February 2021 to discuss potential successor agreements, as the current four-year agreements are set to expire at the end of June 2021. The City’s goals as part of the negotiations process were to ensure the ongoing fiscal viability of the City in the short and long-term, while recognizing the need to retain and recruit qualified staff. These goals are achieved with the proposed agreements. The City wishes to acknowledge the professionalism of the labor representatives. Meaningful dialogue occurred, and the two sides were able to reach agreement within a City Council Agenda Report June 1, 2021 Page 9 of 11 relatively short timeframe on a three-year deal with each association, including minor revisions to the City’s Personnel Rules. If approved, the proposed contracts would cover the period from July 1, 2021 through June 30, 2024. The main points of the agreements that apply to both CEA and MPEA are outlined as follows: Term 3 Years Cost of Living Adjustment (COLA) Fiscal Year 2021-22 2% Fiscal Year 2022-23 2% Fiscal Year 2023-24 2.5% City Hall Closure Closed from Christmas Eve through New Year’s Day (consistent with past practice) Personnel Rules and Regulations Provided at Attachment 12 The proposed agreements also include a one-time retention and recognition payment of $500 for each employee, advanced notification to association leadership in the event of an anticipated employee layoff, the addition of one recognized City holiday (Martin Luther King Day), and allowing employees at their option to designate a distribution of their final paycheck to various deferred compensation accounts. The agreement with CEA temporarily expands their use of Personal Necessity sick leave. The agreement with MPEA provided for an additional one-time $300 telecommuting payment in recognition of their use of employee-owned communication devices while working remotely during the pandemic. If approved by the City Council, the cost of the proposed agreements applicable to Fiscal Year 2021-22 in the amount of $150,000 will be added to the General Fund final budget. Mercy House Agreement The proposed budget includes a $30,000 expansion of the agreement with Mercy House to increase homeless outreach supportive services from a half-time position to a full-time position (Attachment 14). This would permit an expansion of supportive services, including prevention services, referrals for substance abuse counseling, medical treatment and housing identification. FISCAL IMPACT: The fiscal impact of the Proposed Operating and Capital Budget for Fiscal Year 2021-22 on each fund of the City is summarized in Attachment 1, subject to reflecting the impacts of proposed employee compensation changes and an advancement of a portion of the funding for the Stonefield Park Synthetic Turf Project, as described herein. The fiscal impact of the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2021- 22 through 2027-28 is summarized in Attachment 2. City Council Agenda Report June 1, 2021 Page 10 of 11 ENVIRONMENTAL IMPACT: Not applicable. PRIOR CITY COUNCIL REVIEW: On May 4, 2021, the City Council reviewed the Proposed Operating Budgets for Fiscal Years 2021-22 and the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28 during a budget workshop and directed staff to prepare the Proposed Budgets for adoption with no changes other than to fund a $30,000 expansion of the Mercy House contract to increase homeless outreach supportive services and reduce by $64,000 the Fiscal Year 2021-22 financial obligation for the Law Enforcement Services Agreement (Agreement) with OCSD. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: On May 25, 2021, the Planning Commission considered conformity of the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28 to the City’s General Plan. NOTIFICATION: • Classified Employees Association • Management and Professional Employees Association ATTACHMENTS: Attachment 1 Resolution Adopting the Fiscal Year 2021-22 Operating and Capital Budget Attachment 2 Resolution Adopting the Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28 Attachment 3 Measure M2 Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28 Attachment 4 Resolution Establishing the Fiscal Year 2021-22 Appropriations Limitation Attachment 5 Resolution Establishing the Property Tax Rate for the Open Space (Measure Y-2008) General Obligation Bonds, Series 2017 for Fiscal Year 2021-22 Attachment 6 Revised Investment Policy (red-lined) Attachment 7 Revised Investment Policy (clean) Attachment 8 Five-Year Agreement for Law Enforcement Services Attachment 9 First Amendment to the Five-Year Agreement for Law Enforcement Services Attachment 10 2021-2024 Memorandum of Understanding between the City and the Classified Employees Association Attachment 11 2021-2024 Memorandum of Understanding between the City and the Management and Professional Employees Association Attachment 12 Proposed Personnel Rules and Regulations City Council Agenda Report June 1, 2021 Page 11 of 11 Attachment 13 Resolution Revising Proposed Salary Tables for 2021-2024 Attachment 14 Professional Services Agreement with Mercy House 1 RESOLUTION NO. 21-06-01-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA ADOPTING THE FISCAL YEAR 2021-22 OPERATING AND CAPITAL IMPROVEMENT BUDGET AND AUTHORIZING EXPENDITURES AND APPROPRIATIONS RELATED THERETO WHEREAS, at its regular meeting on May 4, 2021, the City Council of the City of San Juan Capistrano held a Budget Workshop to review the recommendations for the Proposed Fiscal Year 2021-22 Operating Budget and the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28; and, WHEREAS, the Proposed Fiscal Year 2021-22 Operating and Capital Budget are the basis for the financial and economic implementation of the City’s General Plan; and, WHEREAS, the Proposed Fiscal Year 2021-22 Operating and Capital Budget provide for service levels necessary to respond to the needs of the community and which are deemed appropriate by the City Council, and concurrently provides a work force to fill these service needs; and, WHEREAS, the City Council recognizes that the Proposed Fiscal Year 2021- 22 Operating and Capital Budget will require adjustments from time to time, and accordingly, the City Manager is authorized to execute necessary transfers to carry out the scope of services as approved. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby determine as follows: 1. That the Proposed Fiscal Year 2021-22 Operating and Capital Budget as shown in Exhibit A attached hereto and incorporated by reference herein and as detailed in the Budget Document on file with the City Clerk’s Office entitled "City of San Juan Capistrano Budget – Fiscal Year 2021-22” and as amended pursuant to direction provided by City Council in the regular City Council meeting held on June 1, 2021, are adopted as follows: ATTACHMENT 2 - Page 1 of 3 2 Operating Expenditures Capital Expenditures Transfers Between Funds (1)Total General Fund 30,092,695$ (565,000)$ 388,835$ 29,916,530$ Other Governmental Funds 4,296,094 10,387,770 700,000 15,383,864 Enterprise Funds 25,450,450 7,842,000 7,707,415 40,999,865 Internal Service Funds 9,331,624 (333,736) - 8,997,888 Total All City Funds (2)69,170,863$ 17,331,034$ 8,796,250$ 95,298,147$ Fiscal Year 2021-22 (1) Transfers between funds are balanced by fund types, general and governmental funds and (2) Totals do not include the San Juan Public Financing Authority and San Juan Capistrano Housing Authority (See Exhibit A to the Resolution). 2. That total appropriations for each fund may only be increased or decreased by the City Council by amending the budget except as provided herein. 3. That the legal level of budgetary control is at the fund level. Budgets may not legally be exceeded at the fund level without appropriate authorization by the City Council. Budgeted amounts for individual classifications within a fund may be exceeded as long as the total annual budget for that fund is not exceeded. 4. That the following controls are hereby placed on the transfers of budgeted funds: a. The City Manager may authorize transfers of funds from account to account within any operating department. b. The City Manager may authorize transfers of funds from department to department within any fund up to $50,000. c. The City Manager may delegate the authority to make budget transfers and adjustments up to $10,000. d. The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenues, which are designated for said specific purpose. 5. That all appropriations for outstanding encumbrances and projects currently underway and remaining unexpended at June 30, 2021, as approved by the City Manager or his designee, are hereby appropriated to the Fiscal Year 2021-22 Operating Budget. ATTACHMENT 2 - Page 2 of 3 3 PASSED, APPROVED, AND ADOPTED this 1ST day of June 2021. __________________________________ JOHN TAYLOR, MAYOR ATTEST: ___________________________________ MARIA MORRIS, CITY CLERK ATTACHMENT 2 - Page 3 of 3 Projected Projected Beginning Operating CIP Transfers Transfers Ending Balance Revenues Expenditures Expenditures In Out Balance 7/1/2021 (1)FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 Adjustments 6/30/2022 GENERAL FUNDS General Fund Unassigned 8,354,216$ 30,921,000$ (30,092,695)$ 565,000$ 700,000$ (388,835)$ (9,854,000)$ 204,686$ Reserve ‐ Tuition Reimbursement Program 35,000 ‐ ‐ ‐ ‐ ‐ ‐ 35,000 Reserve ‐ Cash Flow 5,000,000 ‐ ‐ ‐ ‐ ‐ ‐ 5,000,000 Reserve ‐ Economic Uncertainty 7,500,000 ‐ ‐ ‐ ‐ ‐ 2,500,000 10,000,000 Reserve ‐ Contingency 1,000,000 ‐ ‐ ‐ ‐ ‐ 2,500,000 3,500,000 Reserve ‐ Capital Replacement/City Hall Improvements ‐ ‐ ‐ ‐ ‐ ‐ 2,500,000 2,500,000 Reserve ‐ Eastern Open Space Deficit ‐ ‐ ‐ ‐ ‐ ‐ 2,500,000 2,500,000 Reserve ‐ Consent Decree Water Quality Projects 146,000 ‐ ‐ ‐ ‐ ‐ (146,000) ‐ Reserve ‐ Stonehill Widening Project 400,000 - ‐ - ‐ ‐ ‐ 400,000 Total General Fund 22,435,216 30,921,000 (30,092,695) 565,000 700,000 (388,835) - 24,139,686 Parking Maintenance Fund Assigned‐Parking Maintenance 150,737 256,000 (318,890) - 80,280 - - 168,127 Successor Agency to the CRA/Housing Authority Administration Fund Unassigned 182,683 231,185 (229,185) - - - - 184,683 Farm Operations Fund Assigned‐Farm Operations 733,535 131,500 (78,415) - - - - 786,620 Eastern Open Space Fund Assigned‐Eastern Open Space Operations (2,192,614) 240,000 (308,120) - - - - (2,260,734) GENERAL FUNDS - TOTAL 21,309,557$ 31,779,685$ (31,027,305)$ 565,000$ 780,280$ (388,835)$ -$ 23,018,382$ Special Revenue Funds C&D Forfeited Bonds Fund Restricted‐Recycling Programs 1,060,731$ 25,000$ (21,605)$ -$ -$ -$ -$ 1,064,126$ Road Maintenance and Rehabilitation Account (RMRA) Restricted‐Streets and Roads Capital Projects 92,750 719,000 - (811,750) - - - - Certified Access Specialist Program (C.A.S.P.) Restricted‐CASP Program 21,468 - (8,700) - - - - 12,768 Systems Development/Ord. 211 Fund Restricted‐Streets and Roads Capital Projects 458,852 379,000 - - - - - 837,852 Park and Recreation Fund CITY OF SAN JUAN CAPISTRANO FISCAL YEAR 2021/22 BUDGET SUMMARY EXHIBIT A - Page 1 of 6 Projected Projected Beginning Operating CIP Transfers Transfers Ending Balance Revenues Expenditures Expenditures In Out Balance 7/1/2021 (1)FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 Adjustments 6/30/2022 CITY OF SAN JUAN CAPISTRANO FISCAL YEAR 2021/22 BUDGET SUMMARY Restricted‐Parks and Recreation Capital Projects 2,849,286 1,034,000 - (2,820,863) - - - 1,062,423 EXHIBIT A - Page 2 of 6 Projected Projected Beginning Operating CIP Transfers Transfers Ending Balance Revenues Expenditures Expenditures In Out Balance 7/1/2021 (1)FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 Adjustments 6/30/2022 CITY OF SAN JUAN CAPISTRANO FISCAL YEAR 2021/22 BUDGET SUMMARY Drainage Fund Restricted‐Storm Drain Capital Projects (223,514) 19,000 - - - - - (204,514) Agricultural Preservation Fund Restricted‐Agricultural Preservation Projects 219,272 149,000 - - - - - 368,272 Landscape Maintenance Fund Restricted‐Landscape Maintenance 268,094 140,000 (173,670) - - - - 234,424 CDBG/HOME Fund Restricted‐Housing Rehabilitation for Low and 417,215 144,000 (366,355) - - - - 194,860 Moderate Income Housing Persons Gas Tax Fund Restricted‐Street Rehabilitation and Maintenance (56,733) 945,500 - (538,000) - (350,000) - 767 CCFP Fund Developer Contributions for Specific Projects 409,337 ‐ ‐ ‐ ‐ ‐ ‐ 409,337 Restricted‐Streets and Roads Capital Projects 7,457,223 1,260,000 ‐ (533,780) ‐ ‐ ‐ 8,183,443 Total CCFP Fund 7,866,560 1,260,000 - (533,780) - - - 8,592,780 S.O.N.G.S. Fund Restricted‐Emergency Preparedness 3,116 150,000 (148,389) - - - - 4,727 AQMD Fund Restricted‐Mobile Source Emissions Reduction Programs 363,192 48,000 (5,000) (150,000) - (31,000) - 225,192 Measure M Fund Restricted‐Streets and Roads Capital Projects (120,724) 638,000 - (517,000) - - - 276 Housing In-Lieu Fee Fund Restricted‐Affordable Housing 2,157,725 1,000 - - - - - 2,158,725 Local Law Enforcement Grants Fund Restricted‐Law Enforcement - 150,000 - - - (150,000) - - Park and Open Space Grant Fund Restricted‐Capital Projects - 200,418 - (200,418) - - - - Street and Highways Grant Fund Restricted‐Capital Projects (260,685) 4,835,000 - (4,666,000) - (169,000) - (260,685) Developer Deposits Fund Developer Contributions for Specific Projects - 453,110 (453,110) - - - - - SPECIAL REVENUE FUNDS - TOTAL 15,116,605$ 11,290,028$ (1,176,829)$ (10,237,811)$ -$ (700,000)$ -$ 14,291,993$ EXHIBIT A - Page 3 of 6 Projected Projected Beginning Operating CIP Transfers Transfers Ending Balance Revenues Expenditures Expenditures In Out Balance 7/1/2021 (1)FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 Adjustments 6/30/2022 CITY OF SAN JUAN CAPISTRANO FISCAL YEAR 2021/22 BUDGET SUMMARY Debt Service Fund Debt Service Fund Restricted‐Debt Service 3,738,411$ 1,876,100$ (2,184,655)$ -$ 308,555$ -$ -$ 3,738,411$ Capital Improvement Funds Open Space Bond Projects Fund Restricted ‐ Open Space Capital Projects 83,770$ 1,000 -$ (84,770)$ -$ -$ -$ -$ Community Facilities District Bonds Fund Restricted ‐ Community Facilities Projects 31,712 - - (31,712) - - - - Successor Agency Non-Housing Bonds Fund Restricted ‐ Downtown Projects 33,477 - - (33,477)$ - - - - CAPITAL PROJECTS FUNDS - TOTAL 148,959$ 1,000$ -$ (149,959)$ -$ -$ -$ -$ GENERAL GOVERNMENTAL FUNDS - TOTAL 40,313,532$ 44,946,813$ (34,388,789)$ (9,822,770)$ 1,088,835$ (1,088,835)$ -$ 41,048,786$ ENTERPRISE FUNDS Water Enterprise Funds Domestic Water Operations Fund Unrestricted Net Position‐Available 4,901,082$ 21,439,450$ (16,806,900)$ ‐$ ‐$ (5,807,415)$ ‐$ 3,726,217$ Unrestricted Net Position‐Drought Penalty Reserve 236,903 ‐ (63,280) ‐ ‐ ‐ ‐ 173,623 Unrestricted Net Position‐Rate Stabilization Reserve 1,796,425 ‐ ‐ ‐ ‐ ‐ ‐ 1,796,425 Unrestricted Net Position ‐ Pension & OPEB Liabilities (2)(5,105,597) ‐ ‐ ‐ ‐ ‐ ‐ (5,105,597) Investment in Capital Assets 46,262,101 ‐ ‐ ‐ ‐ ‐ ‐ 46,262,101 Total Domestic Water Operations Fund 48,090,914 21,439,450 (16,870,180) - - (5,807,415) - 46,852,769 Water Debt Service Fund Unrestricted Net Position‐Available 461,248 1,448,000 (4,255,415) ‐ 2,807,415 ‐ ‐ 461,248 Unrestricted Net Position ‐ Outstanding Long‐Term Debt (22,338,486) ‐ ‐ ‐ ‐ ‐ ‐ (22,338,486) Total Water Debt Service Fund (21,877,238) 1,448,000 (4,255,415) - 2,807,415 - - (21,877,238) Non-Potable Water Operations Fund Unrestricted Net Position‐Available 3,207 962,000 (520,380) ‐ ‐ (400,000) ‐ 44,827 Unrestricted Net Position ‐ Pension & OPEB Liabilities (2)(210,367) ‐ ‐ ‐ ‐ ‐ ‐ (210,367) Total Non-Potable Water Operations Fund (207,160) 962,000 (520,380) - - (400,000) - (165,540) Domestic Water Capital Replacement Fund Unrestricted Net Position‐Available 882,359 9,000 - (3,020,000) 3,000,000 - - 871,359 EXHIBIT A - Page 4 of 6 Projected Projected Beginning Operating CIP Transfers Transfers Ending Balance Revenues Expenditures Expenditures In Out Balance 7/1/2021 (1)FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 Adjustments 6/30/2022 CITY OF SAN JUAN CAPISTRANO FISCAL YEAR 2021/22 BUDGET SUMMARY Domestic Water Capital Improvement Fund Unrestricted Net Position‐Available 2,090,496 3,445,000 - (200,000) - - - 5,335,496 Non-Potable Water Capital Improvement Fund Unrestricted Net Assets‐Available 1,384,163 152,000 - (1,816,000) 400,000 - - 120,163 WATER ENTERPRISE FUNDS - TOTAL 30,363,534$ 27,455,450$ (21,645,975)$ (5,036,000)$ 6,207,415$ (6,207,415)$ -$ 31,137,009$ Sewer Enterprise Funds Sewer Enterprise Operations Fund Unrestricted Net Position‐Available 2,329,317$ 3,830,000$ (3,804,475)$ ‐$ ‐$ (1,500,000)$ ‐$ 854,842$ Unrestricted Net Position ‐ Pension & OPEB Liabilities (2)(265,180) ‐ ‐ ‐ ‐ ‐ ‐ (265,180) Investment in Capital Assets 19,115,252 ‐ ‐ ‐ ‐ ‐ ‐ 19,115,252 Total Sewer Operations Fund 21,179,389 3,830,000 (3,804,475) - - (1,500,000) - 19,704,914 Sewer Capital Replacement Fund Unrestricted Net Position‐Available 667,739 15,000 - (1,331,000) 1,500,000 - - 851,739 Sewer Capital Improvement Fund Unrestricted Net Position‐Available 988,399 693,000 (1,475,000) 206,399 Unrestricted Net Position‐Loans to CRA 2,069 ‐ ‐ ‐ ‐ ‐ ‐ 2,069 Unrestricted Net Position-Available 990,468 693,000 - (1,475,000) - - - 208,468 SEWER ENTERPRISE FUNDS - TOTAL 22,837,596$ 4,538,000$ (3,804,475)$ (2,806,000)$ 1,500,000$ (1,500,000)$ -$ 20,765,121$ SJC HOUSING AUTHORITY Housing Authority Administration Fund Unrestricted Net Position‐Available 1,265,562$ 174,100$ (40,675)$ ‐$ ‐$ ‐$ ‐$ 1,398,987 Non‐Spendable ‐ Noncurrent Receivables & Prepaids 5,146,099 ‐ ‐ ‐ ‐ ‐ ‐ 5,146,099 Investment in Capital Assets 4,311,626 ‐ ‐ ‐ ‐ ‐ ‐ 4,311,626 Total Housing Authority Administration Fund 10,723,287 174,100 (40,675) - - - - 10,856,712 Little Hollywood Rental Housing Fund Unrestricted Net Position‐Available 545,147 230,000 (231,215) - - - - 543,932 Successor Agency Housing Bonds Fund Restricted Net Assets‐Affordable Housing Projects 6,168,353 ‐ ‐ ‐ ‐ ‐ ‐ 6,168,353 Non‐Spendable ‐ Noncurrent Receivables 1,051,945 30,000 ‐ ‐ ‐ ‐ ‐ 1,081,945 7,220,298 30,000 - - - - - 7,250,298 SJC HOUSING AUTHORITY - TOTAL 18,488,732$ 434,100$ (271,890)$ -$ -$ -$ -$ 18,650,942$ ENTERPRISE FUNDS - TOTAL 71,689,862$ 32,427,550$ (25,722,340)$ (7,842,000)$ 7,707,415$ (7,707,415)$ -$ 70,553,072$ EXHIBIT A - Page 5 of 6 Projected Projected Beginning Operating CIP Transfers Transfers Ending Balance Revenues Expenditures Expenditures In Out Balance 7/1/2021 (1)FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 Adjustments 6/30/2022 CITY OF SAN JUAN CAPISTRANO FISCAL YEAR 2021/22 BUDGET SUMMARY INTERNAL SERVICE FUNDS Insurance and Benefits Fund Unrestricted Net Assets‐Available 1,632,739$ 6,574,000$ (6,574,000)$ ‐$ ‐$ ‐$ ‐$ 1,632,739$ Noncurrent Assets‐Prepaids & Deferred Outflows 1,265,873 ‐ ‐ ‐ ‐ ‐ ‐ 1,265,873 Total Insurance and Benefits Fund 2,898,612 6,574,000 (6,574,000) - - - - 2,898,612 Facilities Operations Fund Unrestricted Net Position‐Available (3)2,015,228 2,626,470 (2,757,624) 333,736 ‐ ‐ ‐ 2,217,810 Unrestricted Net Position ‐ Pension & OPEB Liabilities (2)(658,396) ‐ ‐ ‐ ‐ ‐ ‐ (658,396) Investment in Capital Assets 2,535,165 ‐ ‐ ‐ ‐ ‐ ‐ 2,535,165 Total Facilities Operations Fund 3,891,997 2,626,470 (2,757,624) 333,736 - - - 4,094,579 INTERNAL SERVICE FUNDS - TOTAL 6,790,609$ 9,200,470$ (9,331,624)$ 333,736$ -$ -$ -$ 6,993,191$ ALL FUNDS - TOTAL 118,794,003$ 86,574,833$ (69,442,753)$ (17,331,034)$ 8,796,250$ (8,796,250)$ -$ 118,595,049$ Less: San Juan Capistrano Housing Authority 271,890 Total Appropriations Approved by City Council (69,170,863)$ (17,331,034)$ (8,796,250)$ Notes: (2)The City is required by the Governmental Accounting Standards Board (GASB) to report the unfunded actuarial liability (UAAL) for its pension plans (GASB Statement No. 68) and other‐post employment benefits (GASB Statement No. 75). The City's General Fund (and other governmental funds) do not reflect such an amount in this schedule because this accounting and reporting standard is only applicable to the City's Enterprise and Internal Service Funds. The City's governmental funds' (i.e. General Fund, Capital Projects Funds, and Special Revenue Funds) portion of the City's total UAAL as of December 31, 2019 (using the December 31, 2018 actuarial valuation rolled forward to December 31, 2019) was approximately $18.8 million for the City's pension plans and was approximately $3.0 million for the other post employment benefit plan as of June 30, 2020 (using the July 1, 2018 actuarial valuation rolled forward to June 30, 2020). (3) Available reserves for capital replacement. (1) Beginning fund balance is based on projected balances as of June 30, 2021, as reported in the City's Second Quarter Financial Report to the City Council on March 2, 2021. EXHIBIT A - Page 6 of 6 1 RESOLUTION NO. 21-06-01-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA ADOPTING THE SEVEN-YEAR CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEARS 2021-22 THROUGH 2027-28 WHEREAS, the City Council of the City of San Juan Capistrano at its regular public meeting on May 4, 2021, was presented with changes in the timing and funding of projects in the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28; and, WHEREAS, the proposed Seven-Year Capital Improvement Program (CIP) is considered a planning document for the projects that are necessary to meet the needs of the community; and, WHEREAS, the City Council intends to use the Seven-Year CIP as a guide for the allocation of resources to meet the needs of the community and achieve the City Council’s established goals and priorities. NOW, THEREFORE, BE IT RESOLVED , that the City Council of the City of San Juan Capistrano does hereby adopt the Seven-Year Capital Improvement Program for Fiscal Years 2021-22 through 2027-28 as shown in Exhibit A attached hereto and incorporated by reference and as follows: (1) The Fiscal Year 2021-22 project expenditures have been adopted as part of the Fiscal Year 2021-22 Operating and Capital Budget of the City of San Juan Capistrano. Project Fiscal Year (1)Expenditures 2021-22 17,331,034$ 2022-23 10,454,250 2023-24 15,009,000 2024-25 9,468,000 2025-26 8,356,000 2026-27 2,172,000 2027-28 2,190,000 TOTAL 64,980,284$ ATTACHMENT 2 - Page 1 of 2 2 PASSED, APPROVED, AND ADOPTED this 1st day of June 2021. _____________________________ JOHN TAYLOR, MAYOR ATTEST: ___________________________________ MARIA MORRIS, CITY CLERK ATTACHMENT 2 - Page 2 of 2 CITY OF SAN JUAN CAPISTRANO 2021-2028 CIP PROJECT SUMMARY BY TYPE PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROJECT 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL TRANSPORTATION 07117-I-5/San Juan Creek Road Underpass Improvements 533,780$ 500,000$ 5,967,000$ -$ -$ -$ -$ 7,000,780$ 08102-Pavement Management Program (PMP)- 50,000 - 50,000 - 110,000 - 210,000 19102-Camino Capistrano Pavement Rehabilitation 1,813,027 1,076,250 - - - - - 2,889,277 20102-Public Right-of-Way ADA Implementation Plan 10,000 - - - - - - 10,000 22103-Spring Street ADA 250,000 - - - - - - 250,000 22101-Via Escolar Pavement Rehabilitation 100,000 - - - - - - 100,000 22102-Rapid Flashing Beacon 25,000 - - - - - - 25,000 xxxxx-Mission Spring Streets Pavement Rehabilitation - 779,000 1,111,000 - - - - 1,890,000 xxxxx-Sun Ranch Streets Pavement Rehabilitation - - 822,000 1,146,000 - - - 1,968,000 xxxxx-Village San Juan and Casitas Streets Pavement Rehab. - - - 918,000 1,550,000 - - 2,468,000 Pavement Rehabilitation xxxxx-Mission Creek Streets Pavement Rehabilitation - - - - 533,000 1,677,000 - 2,210,000 xxxxx-Speed Advisory Sign Calle Arroyo w/o Rancho Viejo Rd - - - - 22,000 - - 22,000 xxxxx-Traffic Signal Synchronization - - 500,000 - - - - 500,000 xxxxx-Traffic Signal Rancho Viejo Rd at Highland - - - - - 80,000 - 80,000 14107-Ortega Highway Improvement Widening Project 4,666,000 - - - - - - 4,666,000 Design Phase xxxxx-Mission Glenn and Mission Woods Streets Pavement - - - - - - 1,960,000 1,960,000 Rehabilitation SUBTOTAL 7,397,807$ 2,405,250$ 8,400,000$ 2,114,000$ 2,105,000$ 1,867,000$ 1,960,000$ 26,249,057$ PARKS AND OPEN SPACE 07204-Citywide Trail Improvements -$ 75,000$ -$ 75,000$ -$ 75,000$ -$ 225,000$ 09203-Citywide Playground Upgrades - 125,000 130,000 130,000 130,000 130,000 130,000 775,000 21201-Skateboard Park 2,974,963 - - - - - - 2,974,963 xxxxx-Stonefield Park Synthetic Turf - 1,450,000 - - - - - 1,450,000 xxxxx-Sports Park Turf Improvements - 750,000 245,000 - - - - 995,000 xxxxx-Lighting Improvements Soccer Fields - 180,000 320,000 - - - - 500,000 22201-Cook La Novia Park Pickleball Courts Conversion 115,000 - - - - - - 115,000 SUBTOTAL 3,089,963$ 2,580,000$ 695,000$ 205,000$ 130,000$ 205,000$ 130,000$ 7,034,963$ BUILDINGS AND FACILITIES 15306-ADA Self Evaluation and Transition Plan (583,736)$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 16,264$ xxxxx-Historic Town Center Park Storage Facility - - 180,000 - - - - 180,000 xxxxx-Montanez Adobe Refurbishment - 54,000 - - - - - 54,000 22301-Electric Car Charging Station at Community Center 150,000 - - - - - - 150,000 xxxxx-City Hall and Community Center Improvements - 350,000 - - - - - 350,000 SUBTOTAL (433,736)$ 504,000$ 280,000$ 100,000$ 100,000$ 100,000$ 100,000$ 750,264$ EXHIBIT A - Page 1 of 24 CITY OF SAN JUAN CAPISTRANO 2021-2028 CIP PROJECT SUMMARY BY TYPE PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROJECT 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL DRAINAGE 20501 - Confined Animal Feeding Operations (CAFO) Stormwater Treatment System (565,000)$ -$ -$ -$ -$ -$ -$ (565,000) SUBTOTAL (565,000)$ -$ -$ -$ -$ -$ -$ (565,000)$ DOMESTIC WATER 08801-Joint Regional Water Supply System (JRWSS) -$ -$ 505,000$ 100,000$ 100,000$ -$ -$ 705,000$ Capital Replacements 17802-760S Zone Pump Station Discharge Line Replacement 800,000 - - - - - - 800,000 17803-Valve Insertion Program 200,000 200,000 200,000 200,000 200,000 - - 1,000,000 17806-Water Facility Control Systems 200,000 200,000 200,000 - - - - 600,000 17807-Well Facility Equipment Replacement Program 90,000 135,000 90,000 90,000 135,000 - - 540,000 19803-GWRP Clear Well Replacement 250,000 - - - - - - 250,000 19804-Pump Station Component Replacements 480,000 500,000 540,000 580,000 - - - 2,100,000 19805-Eastern Transmission System Repairs 220,000 220,000 - - - - - 440,000 20801-System Repairs and Upgrade of Appurtenances 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 - - 5,000,000 xxxxx-Groundwater Recharge with Storm Water - 585,000 585,000 585,000 585,000 - - 2,340,000 xxxxx-San Juan Hills Greens and Estates Pipeline Replacement - - - 2,300,000 2,300,000 - - 4,600,000 SUBTOTAL 3,240,000$ 2,840,000$ 3,120,000$ 4,855,000$ 4,320,000$ -$ -$ 18,375,000$ RECYCLED WATER xx601-Annual Recycled Water Service Conversions Project 170,000$ 170,000$ -$ -$ -$ -$ -$ 340,000$ 17601-Trampas Canyon Recycled Water Reservoir 101,000 101,000 101,000 101,000 101,000 - - 505,000 18601-Calle Arroyo Recycled Pipeline 1,425,000 112,000 475,000 175,000 - - - 2,187,000 22602-Recycled Water Master Plan 100,000 - - - - - - 100,000 SUBTOTAL 1,796,000$ 383,000$ 576,000$ 276,000$ 101,000$ -$ -$ 3,132,000$ SEWER xx701-Annual Sewer Replacement Program 550,000$ 600,000$ 600,000$ 600,000$ 600,000$ - -$ 2,950,000$ 07701-South Orange County Wastewater Authority 2,256,000 1,117,000 1,318,000 1,318,000 1,000,000 - - 7,009,000 PC#2 & #5 Rehab 08701-Food, Oils & Grease (FOG) Interceptor Program - 25,000 20,000 - - - - 45,000 SUBTOTAL 2,806,000$ 1,742,000$ 1,938,000$ 1,918,000$ 1,600,000$ -$ -$ 10,004,000$ GRAND TOTAL 17,331,034$ 10,454,250$ 15,009,000$ 9,468,000$ 8,356,000$ 2,172,000$ 2,190,000$ 64,980,284$ EXHIBIT A - Page 2 of 24 CITY OF SAN JUAN CAPISTRANO FUND 1 - GENERAL FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE -$ -$ -$ -$ -$ -$ -$ -$ REVENUES Current Year Project Funding 2,065,000 (565,000) - - - - - - TOTAL - PROJECTED REVENUES AND OTHER SOURCES 2,065,000$ (565,000)$ -$ -$ -$ -$ -$ -$ TOTAL REVENUE AVAILABLE 2,065,000$ (565,000)$ -$ -$ -$ -$ -$ -$ EXPENDITURES 20202-Arizona Crossing Removal 365,000 - - - - - - - 20203-Stream Bank Restoration 1,600,000 - - - - - - - 20204-Ramos Street Parking Lot Expansion 100,000 - - - - - - - 20501 - Confined Animal Feeding Operations (CAFO) Stormwater Treatment System - (565,000) - - - - - - TOTAL EXPENDITURES 2,065,000$ (565,000)$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE -$ -$ -$ -$ -$ -$ -$ -$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 3 of 24 CITY OF SAN JUAN CAPISTRANO FUND 2 - PARKING FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 150,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ REVENUES Current Year Project Funding - - - - - - - - TOTAL - PROJECTED REVENUES AND OTHER SOURCES -$ -$ -$ -$ -$ -$ -$ -$ TOTAL REVENUE AVAILABLE 150,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ EXPENDITURES 20204-Ramos Street Parking Lot Expansion 100,000 - - - - - - - - - - - - - - TOTAL EXPENDITURES 100,000$ -$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ 50,737$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 4 of 24 CITY OF SAN JUAN CAPISTRANO FUND 6 - ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 159,550$ 92,750$ -$ -$ -$ -$ -$ -$ REVENUES Gas Tax 2030 (SB-1)547,200 719,000 741,000 756,000 771,000 786,000 802,000 818,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 547,200$ 719,000$ 741,000$ 756,000$ 771,000$ 786,000$ 802,000$ 818,000$ TOTAL REVENUE AVAILABLE 706,750$ 811,750$ 741,000$ 756,000$ 771,000$ 786,000$ 802,000$ 818,000$ EXPENDITURES 19101-Meredith Canyon Streets Pavement Rehabilitation 495,000 - - - - - - - 19102-Camino Capistrano Pavement Rehabilitation 119,000 811,750 741,000 - - - - - xxxxx-Mission Spring Streets Pavement Rehabilitation - - - 756,000 - - - - xxxxx-Sun Ranch Streets Pavement Rehabilitation - - - - 771,000 - - - xxxxx-Village San Juan and Casitas Streets Pavement - - - - - 786,000 - - Rehabilitation xxxxx-Mission Creek Streets Pavement Rehabilitation - - - - - - 802,000 - xxxxx-Mission Glenn and Mission Woods Streets Pavement - - - - - - - 650,000 Rehabilitation TOTAL EXPENDITURES 614,000$ 811,750$ 741,000$ 756,000$ 771,000$ 786,000$ 802,000$ 650,000$ ENDING FUND BALANCE 92,750$ -$ -$ -$ -$ -$ -$ 168,000$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 5 of 24 CITY OF SAN JUAN CAPISTRANO FUND 10 - SYSTEMS DEVELOPMENT FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 408,852$ 458,852$ 837,852$ 1,922,852$ 2,327,852$ 2,886,852$ 3,016,852$ 3,188,852$ REVENUES Systems Development Tax 577,000 363,000 1,036,000 370,000 526,000 99,000 139,000 47,000 Development Fees - Ord 211 17,000 11,000 41,000 16,000 10,000 2,000 3,000 1,000 Interest 6,000 5,000 8,000 19,000 23,000 29,000 30,000 32,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 600,000$ 379,000$ 1,085,000$ 405,000$ 559,000$ 130,000$ 172,000$ 80,000$ TOTAL FUNDS AVAILABLE 1,008,852$ 837,852$ 1,922,852$ 2,327,852$ 2,886,852$ 3,016,852$ 3,188,852$ 3,268,852$ EXPENDITURES 20204-Ramos Street Parking Lot Expansion 119,366 - - - - - - - 20205-Gateway Landscape Project 430,634 - - - - - - - TOTAL EXPENDITURES 550,000$ -$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE 458,852$ 837,852$ 1,922,852$ 2,327,852$ 2,886,852$ 3,016,852$ 3,188,852$ 3,268,852$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 6 of 24 CITY OF SAN JUAN CAPISTRANO FUND 11 - PARK AND RECREATION FEES FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 2,169,523$ 2,849,286$ 1,062,423$ 2,345,423$ 3,295,423$ 3,993,423$ 3,903,423$ 3,737,423$ REVENUES Park/Recreation Fees 966,000 1,006,000 3,906,000 1,802,000 870,000 - - - Developer Contribution - - - - - - - - Interest 11,000 28,000 11,000 23,000 33,000 40,000 39,000 37,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 977,000$ 1,034,000$ 3,917,000$ 1,825,000$ 903,000$ 40,000$ 39,000$ 37,000$ TOTAL REVENUE AVAILABLE 3,146,523$ 3,883,286$ 4,979,423$ 4,170,423$ 4,198,423$ 4,033,423$ 3,942,423$ 3,774,423$ EXPENDITURES 07204-City-wide Trail Improvements 75,000 - 75,000 - 75,000 - 75,000 - 09203-City-wide Playground Upgrades - - 125,000 130,000 130,000 130,000 130,000 130,000 09209-Northwest Open Space Community Park - (68,682) - - - - - - 16203-Malaspina Trail - - - - - - - - 18201-Cook La Novia Park Picnic Area Enhancements (115,000) - - - - - - - 22201-Cook La Novia Park Pickleball Courts Conversion - 115,000 - - - - - - 20204-Paseo Adelanto Parking Lot Expansion (Los Rios)- - - - - - - - 21201-Skateboard Park 337,237 2,774,545 - - - - - - xxxxx-Montanez Adobe Refurbishment - - 54,000 - - - - - xxxxx-Stonefield Park Synthetic Turf - - 1,450,000 - - - - - xxxxx-Sports Park Turf Improvements - - 750,000 245,000 - - - - xxxxx-Lighting Improvements Soccer Fields - - 180,000 320,000 - - - - xxxxx-Historic Town Center Park Storage Facility - - - 180,000 - - - - TOTAL EXPENDITURES 297,237$ 2,820,863$ 2,634,000$ 875,000$ 205,000$ 130,000$ 205,000$ 130,000$ ENDING FUND BALANCE 2,849,286$ 1,062,423$ 2,345,423$ 3,295,423$ 3,993,423$ 3,903,423$ 3,737,423$ 3,644,423$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 7 of 24 CTIY OF SAN JUAN CAPISTRANO FUND 12 - DRAINAGE FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE (260,514)$ (223,514)$ (204,514)$ (89,514)$ (15,514)$ 102,486$ 159,486$ 216,486$ REVENUES Drainage Fees 37,000 19,000 115,000 74,000 118,000 57,000 57,000 36,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 37,000$ 19,000$ 115,000$ 74,000$ 118,000$ 57,000$ 57,000$ 36,000$ TOTAL REVENUE AVAILABLE (223,514)$ (204,514)$ (89,514)$ (15,514)$ 102,486$ 159,486$ 216,486$ 252,486$ EXPENDITURES - - - - - - - - TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE (223,514)$ (204,514)$ (89,514)$ (15,514)$ 102,486$ 159,486$ 216,486$ 252,486$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 8 of 24 CTIY OF SAN JUAN CAPISTRANO FUND 13 - AGRICULTURAL PRESERVATION FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 163,272$ 219,272$ 368,272$ 678,272$ 795,272$ 948,272$ 1,094,272$ 1,183,272$ REVENUES Agricultural Preservation Fees 54,000 147,000 306,000 110,000 145,000 137,000 78,000 33,000 Interest 2,000 2,000 4,000 7,000 8,000 9,000 11,000 12,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 56,000$ 149,000$ 310,000$ 117,000$ 153,000$ 146,000$ 89,000$ 45,000$ TOTAL REVENUE AVAILABLE 219,272$ 368,272$ 678,272$ 795,272$ 948,272$ 1,094,272$ 1,183,272$ 1,228,272$ EXPENDITURES - - - - - - - - TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE 219,272$ 368,272$ 678,272$ 795,272$ 948,272$ 1,094,272$ 1,183,272$ 1,228,272$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 9 of 24 CITY OF SAN JUAN CAPISTRANO FUND 17 - GAS TAX FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE (31,733)$ (56,733)$ 767$ 1,517$ 2,517$ 3,517$ 4,517$ 122,517$ REVENUES Gas Tax 2103 (HUTA)266,050 325,000 335,000 342,000 349,000 356,000 363,000 370,000 Gas Tax 2105 173,400 211,900 218,000 222,000 226,000 231,000 236,000 241,000 Gas Tax 2106 117,300 132,600 137,000 140,000 143,000 146,000 149,000 152,000 Gas Tax 2107 228,650 269,000 277,000 283,000 289,000 295,000 301,000 307,000 Gas Tax 2107.5 5,100 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Interest 6,000 1,000 - - - - - 1,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 796,500$ 945,500$ 973,000$ 993,000$ 1,013,000$ 1,034,000$ 1,055,000$ 1,077,000$ TOTAL REVENUE AVAILABLE 764,767$ 888,767$ 973,767$ 994,517$ 1,015,517$ 1,037,517$ 1,059,517$ 1,199,517$ EXPENDITURES xx101/104-Annual Traffic Signal Cabinet Upgrades 260,000 - - - - - - - 19101-Meredith Canyon Streets Pavement Rehabilitation 139,000 - - - - - - - 19102-Camino Capistrano Pavement Rehabilitation - 403,000 285,250 - - - - - 20102-Public Right-of-Way ADA Implementation Plan 72,500 10,000 - - - - - - 22101-Via Escolar Pavement Rehabilitation - 100,000 - - - - - - 22102-Rapid Flashing Beacon - 25,000 - - - - - - xxxxx-Mission Spring Streets Pavement Rehabilitation - - 337,000 305,000 - - - - xxxxx-Sun Ranch Streets Pavement Rehabilitation - - - 337,000 325,000 - - - xxxxx-Village San Juan and Casitas Streets Pavement - - - - 337,000 544,000 - - Rehabilitation xxxxx-Mission Creek Streets Pavement Rehabilitation - - - - - 117,000 587,000 - xxxxx-Speed Advisory Sign Calle Arroyo w/o Rancho Viejo Rd - - - - - 22,000 - - xxxxx-Mission Glenn and Mission Woods Streets Pavement - - - - - - - 650,000 Rehabilitation Transfer Out-General Fund (Street Maintenance)350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 TOTAL EXPENDITURES 821,500$ 888,000$ 972,250$ 992,000$ 1,012,000$ 1,033,000$ 937,000$ 1,000,000$ ENDING FUND BALANCE (56,733)$ 767$ 1,517$ 2,517$ 3,517$ 4,517$ 122,517$ 199,517$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 10 of 24 CTIY OF SAN JUAN CAPISTRANO FUND 18 - CCFP FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 7,776,980$ 7,866,560$ 8,592,780$ 11,751,780$ 7,051,780$ 8,111,780$ 8,616,780$ 9,316,780$ REVENUES Circulation Fees 863,000 1,204,000 3,573,000 1,149,000 989,000 424,000 614,000 246,000 Interest 56,000 56,000 86,000 118,000 71,000 81,000 86,000 93,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 919,000$ 1,260,000$ 3,659,000$ 1,267,000$ 1,060,000$ 505,000$ 700,000$ 339,000$ TOTAL AVAILABLE 8,695,980$ 9,126,560$ 12,251,780$ 13,018,780$ 8,111,780$ 8,616,780$ 9,316,780$ 9,655,780$ EXPENDITURES 07117-I-5/San Juan Creek Road Underpass Improvements 270,920 533,780 500,000 5,967,000 - - - - xxxxx-Stonehill Drive Traffic Signal at Lower Rosan Entrance 558,500 - - - - - - - TOTAL EXPENDITURES 829,420$ 533,780$ 500,000$ 5,967,000$ -$ -$ -$ -$ ENDING FUND BALANCE 7,866,560$ 8,592,780$ 11,751,780$ 7,051,780$ 8,111,780$ 8,616,780$ 9,316,780$ 9,655,780$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 11 of 24 CITY OF SAN JUAN CAPISTRANO FUND 31 - AIR QUALITY MANAGEMENT DISTRICT (AQMD)/AB2766 FUND FISCAL YEAR 2021/2022 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 355,192$ 363,192$ 225,192$ 233,192$ 241,192$ 248,192$ 255,192$ 263,192$ REVENUES Fund Contribution: Current Year Project Funding 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 Interest 3,000 3,000 2,000 2,000 2,000 2,000 3,000 3,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 48,000$ 48,000$ 47,000$ 47,000$ 47,000$ 47,000$ 48,000$ 48,000$ TOTAL REVENUE AVAILABLE 403,192$ 411,192$ 272,192$ 280,192$ 288,192$ 295,192$ 303,192$ 311,192$ EXPENDITURES 22301-Electric Car Charging Station at Community Center - 150,000 - - - - - - Transfer Out to General Fund for Mounted Police 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Transfer Out to General Fund for Senior Mobility Transportation Program 14,000 9,000 12,000 12,000 13,000 13,000 13,000 13,000 Transfer Out to General Fund for Summer Trolley Program 21,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 TOTAL EXPENDITURES 40,000$ 186,000$ 39,000$ 39,000$ 40,000$ 40,000$ 40,000$ 40,000$ ENDING FUND BALANCE 363,192$ 225,192$ 233,192$ 241,192$ 248,192$ 255,192$ 263,192$ 271,192$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 12 of 24 CITY OF SAN JUAN CAPISTRANO FUND 32 - MEASURE M FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 97,276$ (120,724)$ 276$ 112,276$ 153,276$ 167,276$ 252,276$ 518,276$ REVENUES Measure M Local Turnback 579,000 635,000 654,000 675,000 693,000 719,000 741,000 763,000 Interest 3,000 3,000 - 1,000 2,000 2,000 3,000 5,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 582,000$ 638,000$ 654,000$ 676,000$ 695,000$ 721,000$ 744,000$ 768,000$ TOTAL AVAILABLE 679,276$ 517,276$ 654,276$ 788,276$ 848,276$ 888,276$ 996,276$ 1,286,276$ EXPENDITURES 08102-Pavement Management Program (PMP)95,000 - 50,000 - 50,000 - 110,000 - 19102-Camino Capistrano Pavement Rehabilitation 430,634 517,000 50,000 - - - - - 19101-Meredith Canyon Streets Pavement Rehabilitation 274,366 - - - - - - - xxxxx-Mission Spring Streets Pavement Rehabilitation - - 442,000 50,000 - - - - xxxxx-Sun Ranch Streets Pavement Rehabilitation - - - 485,000 50,000 - - - xxxxx-Village San Juan and Casitas Streets Pavement - - - - 581,000 220,000 - - Rehabilitation xxxxx-Mission Creek Streets Pavement Rehabilitation - - - - - 416,000 288,000 - xxxxx-Traffic Signal Synchronization (Match)- - - 100,000 - - - - xxxxx-Traffic Signal Rancho Viejo Rd at Highland - - - - - - 80,000 - xxxxx-Mission Glenn and Mission Woods Streets Pavement - - - - - - - 660,000 Rehabilitation TOTAL EXPENDITURES 800,000 517,000 542,000 635,000 681,000 636,000 478,000 660,000 ENDING FUND BALANCE (120,724)$ 276$ 112,276$ 153,276$ 167,276$ 252,276$ 518,276$ 626,276$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 13 of 24 City of San Juan Capistrano FUND 36 - PARK, RECREATION, AND OPEN SPACE GRANTS FUND FISCAL YEAR 2021/2022 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE -$ -$ -$ -$ -$ -$ -$ -$ REVENUES Grants - State - 200,418 - - - - - - TOTAL - PROJECTED REVENUES AND OTHER SOURCES -$ 200,418$ -$ -$ -$ -$ -$ -$ TOTAL REVENUE AVAILABLE -$ 200,418$ -$ -$ -$ -$ -$ -$ EXPENDITURES 21201-Skateboard Park - 200,418 - - - - - - TOTAL EXPENDITURES -$ 200,418 -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE -$ -$ -$ -$ -$ -$ -$ -$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 14 of 24 CITY OF SAN JUAN CAPISTRANO FUND 37 - HIGHWAYS, STREETS, AND ROADS GRANTS FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ REVENUES Measure M Specific Projects 190,000 169,000 180,000 190,000 - - - - CTFP Grant - - - 400,000 Arteria Capacity Enhancement (ACE) Grant 1,750,000 3,500,000 - - - - - - Developer Contribution 584,000 1,166,000 - - - - - - TOTAL - PROJECTED REVENUES AND OTHER SOURCES 2,524,000$ 4,835,000$ 180,000$ 590,000$ -$ -$ -$ -$ TOTAL REVENUE AVAILABLE 2,263,315$ 4,574,315$ (80,685)$ 329,315$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ EXPENDITURES 14107-Ortega Highway Improvement Widening Project 2,334,000 4,666,000 - - - - - - xxxxx-Traffic Signal Synchronization - - - 400,000 - - - - Design Phase Transfer Out to General Fund for Summer Trolley Program 190,000 169,000 180,000 190,000 - - - - TOTAL EXPENDITURES 2,524,000$ 4,835,000$ 180,000$ 590,000$ -$ -$ -$ -$ ENDING FUND BALANCE (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ (260,685)$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 15 of 24 CITY OF SAN JUAN CAPISTRANO FUND 51 - OPEN SPACE ACQUISTION AND CONSTRUCTION FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 73,770$ 83,770$ -$ -$ -$ -$ -$ -$ REVENUES Interest 10,000 1,000 - - - - - - TOTAL - PROJECTED REVENUES AND OTHER SOURCES 10,000$ 1,000$ -$ -$ -$ -$ -$ -$ TOTAL REVENUE AVAILABLE 83,770$ 84,770$ -$ -$ -$ -$ -$ -$ EXPENDITURES 09209-Northwest Open Space Community Park - 84,770 - - - - - - TOTAL EXPENDITURES -$ 84,770$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE 83,770$ -$ -$ -$ -$ -$ -$ -$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 16 of 24 CITY OF SAN JUAN CAPISTRANO FUND 52 - COMMUNITY FACILITIES DISTRICT BONDS FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 199,468$ 31,712$ -$ -$ -$ -$ -$ -$ REVENUES Interest 20,000 - - - - - - - TOTAL - PROJECTED REVENUES AND OTHER SOURCES 20,000$ -$ -$ -$ -$ -$ -$ -$ TOTAL REVENUE AVAILABLE 219,468$ 31,712$ -$ -$ -$ -$ -$ -$ EXPENDITURES 09209-Northwest Open Space Community Park - (16,088) - - - - - - 19102-Camino Capistrano Pavement Rehabilitation - 47,800 - - - - - - xxxxx-Skateboard Park 187,756 - - - - - - - TOTAL EXPENDITURES 187,756$ 31,712$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE 31,712$ -$ -$ -$ -$ -$ -$ -$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 17 of 24 CITY OF SAN JUAN CAPISTRANO FUND 53 - SUCCESSOR AGENCY NON-HOUSING BONDS FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 23,477$ 33,477$ -$ -$ -$ -$ -$ -$ REVENUES Interest 10,000 - - - - - - - TOTAL - PROJECTED REVENUES AND OTHER SOURCES 10,000$ -$ -$ -$ -$ -$ -$ -$ TOTAL REVENUE AVAILABLE 33,477$ 33,477$ -$ -$ -$ -$ -$ -$ EXPENDITURES 19102-Camino Capistrano Pavement Rehabilitation - 33,477 - - - - - - TOTAL EXPENDITURES -$ 33,477$ -$ -$ -$ -$ -$ -$ ENDING FUND BALANCE 33,477$ -$ -$ -$ -$ -$ -$ -$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 18 of 24 CITY OF SAN JUAN CAPISTRANO FUND 63 - DOMESTIC WATER CAPITAL REPLACEMENT FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 1,645,359$ 882,359$ 871,359$ 1,845,359$ 2,548,359$ 1,503,359$ 1,638,359$ 5,308,359$ REVENUES Transfer In - Domestic Water Operations (2)2,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,655,000 3,655,000 - Interest 12,000 9,000 9,000 18,000 25,000 15,000 15,000 15,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 2,012,000$ 3,009,000$ 3,009,000$ 3,018,000$ 3,025,000$ 3,670,000$ 3,670,000$ 15,000$ TOTAL REVENUE AVAILABLE 3,657,359$ 3,891,359$ 3,880,359$ 4,863,359$ 5,573,359$ 5,173,359$ 5,308,359$ 5,323,359$ EXPENDITURES 08801-Joint Regional Water Supply System (JRWSS) - - - 505,000 100,000 100,000 - - Capital Replacements 17802-760S Zone Pump Station Discharge Line Replacement 800,000 800,000 - - - - - - 17806-Water Facility Control Systems 180,000 180,000 180,000 180,000 - - - - 17807-Well Facility Replacement Program 135,000 90,000 135,000 90,000 90,000 135,000 - - 19803- GWRP Clear Well Replacement - 250,000 - - - - - - 19804-Pump Station Component Replacements 460,000 480,000 500,000 540,000 580,000 - - - 19805-Eastern Transmission System Repairs 200,000 220,000 220,000 - - - - - 20801-System Repairs and Upgrade of Appurtenances 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 - - xxxxx-SJ Hills Greens and Estates Pipeline Replacement - - - - 2,300,000 2,300,000 - - TOTAL EXPENDITURES 2,775,000$ 3,020,000$ 2,035,000$ 2,315,000$ 4,070,000$ 3,535,000$ -$ -$ ENDING FUND BALANCE 882,359$ 871,359$ 1,845,359$ 2,548,359$ 1,503,359$ 1,638,359$ 5,308,359$ 5,323,359$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021. (2) The Water Capital Replacement Program will require additional funding from water ratepayers in the City's future rate study to meet the capital needs of the City's water system.EXHIBIT A - Page 19 of 24 CITY OF SAN JUAN CAPISTRANO FUND 64 - DOMESTIC WATER CAPITAL IMPROVEMENT FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 88,496$ 2,090,496$ 5,335,496$ 7,423,496$ 7,556,496$ 7,414,496$ 6,854,496$ 7,129,496$ REVENUES Water Capital Improvement Charge 614,000 976,000 799,000 241,000 162,000 41,000 55,000 18,000 Water Capacity Charge 799,000 1,269,000 1,039,000 314,000 211,000 53,000 72,000 23,000 Water Storage Fees 774,000 1,179,000 982,000 289,000 194,000 57,000 79,000 26,000 Interest 15,000 21,000 53,000 74,000 76,000 74,000 69,000 71,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 2,202,000$ 3,445,000$ 2,873,000$ 918,000$ 643,000$ 225,000$ 275,000$ 138,000$ TOTAL REVENUE AVAILABLE 2,290,496$ 5,535,496$ 8,208,496$ 8,341,496$ 8,199,496$ 7,639,496$ 7,129,496$ 7,267,496$ EXPENDITURES 17803-Valve Insertion Program 200,000 200,000 200,000 200,000 200,000 200,000 - - xxxxx-Groundwater Recharge with Storm Water - - 585,000 585,000 585,000 585,000 - - TOTAL EXPENDITURES 200,000$ 200,000$ 785,000$ 785,000$ 785,000$ 785,000$ -$ -$ ENDING FUND BALANCE 2,090,496$ 5,335,496$ 7,423,496$ 7,556,496$ 7,414,496$ 6,854,496$ 7,129,496$ 7,267,496$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 20 of 24 CITY OF SAN JUAN CAPISTRANO FUND 65 - NON-POTABLE WATER CAPITAL IMPROVEMENTS FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 1,443,163$ 1,384,163$ 120,163$ 118,163$ 121,163$ 329,163$ 714,163$ 1,121,163$ REVENUES Water Capacity Charge 180,000 151,000 - 198,000 83,000 83,000 - - Grants-MWDOC - - - - - - - - Interest 1,000 1,000 1,000 1,000 1,000 3,000 7,000 11,000 Transfer In - Non-Potable Water Operations 600,000 400,000 400,000 400,000 400,000 400,000 400,000 - TOTAL - PROJECTED REVENUES AND OTHER SOURCES 781,000$ 552,000$ 401,000$ 599,000$ 484,000$ 486,000$ 407,000$ 11,000$ TOTAL REVENUE AVAILABLE 2,224,163$ 1,936,163$ 521,163$ 717,163$ 605,163$ 815,163$ 1,121,163$ 1,132,163$ EXPENDITURES xx601-Annual Recycled Water Service Conversions Project 170,000 170,000 170,000 - - - - - 17601-Trampas Canyon Recycled Water Reservoir 10,000 101,000 101,000 101,000 101,000 101,000 - - 17806-Water Facility Control Systems 20,000 20,000 20,000 20,000 - - - - 18601-Calle Arroyo Recycled Pipeline 475,000 1,425,000 112,000 475,000 175,000 - - - 22602-Recycled Water Master Plan 165,000 100,000 - - - - - - TOTAL EXPENDITURES 840,000$ 1,816,000$ 403,000$ 596,000$ 276,000$ 101,000$ -$ -$ ENDING FUND BALANCE 1,384,163$ 120,163$ 118,163$ 121,163$ 329,163$ 714,163$ 1,121,163$ 1,132,163$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 21 of 24 CITY OF SAN JUAN CAPISTRANO FUND 71 - SEWER CAPITAL REPLACEMENT FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 1,019,739$ 667,739$ 851,739$ 1,512,739$ 1,669,739$ 1,468,739$ 1,478,739$ 2,993,739$ REVENUES Transfer In - Sewer Enterprise Operations 1,995,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 - Interest 15,000 15,000 9,000 15,000 17,000 15,000 15,000 30,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 2,010,000$ 1,515,000$ 1,509,000$ 1,515,000$ 1,517,000$ 1,515,000$ 1,515,000$ 30,000$ TOTAL REVENUE AVAILABLE 3,029,739$ 2,182,739$ 2,360,739$ 3,027,739$ 3,186,739$ 2,983,739$ 2,993,739$ 3,023,739$ EXPENDITURES XX701-Annual Sewer Replacement Program 550,000 550,000 600,000 600,000 600,000 600,000 - - 07701-South Orange County Wastewater Authority 1,812,000 781,000 223,000 738,000 1,118,000 905,000 - - PC#2 & #5 Rehabilitation - - 08701-Food, Oils & Grease (FOG) Interceptor Program - - 25,000 20,000 - - - - TOTAL EXPENDITURES 2,362,000$ 1,331,000$ 848,000$ 1,358,000$ 1,718,000$ 1,505,000$ -$ -$ ENDING FUND BALANCE 667,739$ 851,739$ 1,512,739$ 1,669,739$ 1,468,739$ 1,478,739$ 2,993,739$ 3,023,739$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 22 of 24 CITY OF SAN JUAN CAPISTRANO FUND 72 - SEWER CAPITAL IMPROVEMENT FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 1,455,399$ 988,399$ 206,399$ 1,477,399$ 1,656,399$ 1,997,399$ 2,121,399$ 5,129,399$ REVENUES Sewer Connection Fees 1,296,000 668,000 2,163,000 744,000 524,000 199,000 2,987,000 104,000$ Investment Interest 25,000 25,000 2,000 15,000 17,000 20,000 21,000 51,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES 1,321,000$ 693,000$ 2,165,000$ 759,000$ 541,000$ 219,000$ 3,008,000$ 155,000$ TOTAL REVENUE AVAILABLE 2,776,399$ 1,681,399$ 2,371,399$ 2,236,399$ 2,197,399$ 2,216,399$ 5,129,399$ 5,284,399$ EXPENDITURES 07701-South Orange County Wastewater Authority 1,788,000 1,475,000 894,000 580,000 200,000 95,000 - - PC#2 & #5 Rehabilitation TOTAL EXPENDITURES 1,788,000$ 1,475,000$ 894,000$ 580,000$ 200,000$ 95,000$ -$ -$ ENDING FUND BALANCE 988,399$ 206,399$ 1,477,399$ 1,656,399$ 1,997,399$ 2,121,399$ 5,129,399$ 5,284,399$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 23 of 24 CITY OF SAN JUAN CAPISTRANO FUND 81 - FACILITIES OPERATIONS FUND FISCAL YEAR 2021/22 AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Description 2020/21 (1)2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 BEGINNING FUND BALANCE 2,000,000$ 591,264$ 825,000$ 475,000$ 475,000$ 475,000$ 475,000$ 475,000$ REVENUES Current Year Project Funding - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 TOTAL - PROJECTED REVENUES AND OTHER SOURCES -$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ TOTAL REVENUE AVAILABLE 2,000,000$ 691,264$ 925,000$ 575,000$ 575,000$ 575,000$ 575,000$ 575,000$ EXPENDITURES 15306-ADA Self Evaluation and Transition Plan 735,736 (583,736) 100,000 100,000 100,000 100,000 100,000 100,000 20102-Public Right-of-Way ADA Implementation Plan 25,000 - - - - - - - Finance-HR System 648,000 - - - - - - - xxxxx-City Hall and Community Center Improvements - - 350,000 - - - - - 22103-Spring Street ADA - 250,000 Department Software - 200,000 - - - - - - TOTAL EXPENDITURES 1,408,736$ (133,736)$ 450,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ ENDING FUND BALANCE 591,264$ 825,000$ 475,000$ 475,000$ 475,000$ 475,000$ 475,000$ 475,000$ (1) Per the City's Fiscal Year 2020/21 Second Quarter Financial Report that was approved by the City Council on March 2, 2021.EXHIBIT A - Page 24 of 24 Orange County Transportation Authority 2021 Capital Improvement Program TIP ID CP-11091 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: N/A Project Title Additional Project IDs:07117-I-5/San Juan Creek Road Underpass Improvement Project Type of Work:Road Widening Project Description Type of Work Description:Road Widening - Add 2 lanes to existing roadway in project limits Widen San Juan Creek Road under I-5 overpass between Valle Road and Camino Capistrano. Limits Valle Road to Camino Capistrano Project Notes Developer Contribution. Capistrano Circulation Fee Program FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2022 Traffic Impact Fees $183,000 $136,800 $213,980 $0 $533,780 $544,654 2023 Traffic Impact Fees $0 $0 $500,000 $0 $500,000 $531,480 2024 Traffic Impact Fees $0 $0 $5,967,000 $0 $5,967,000 $6,539,312 Totals:$183,000 $136,800 $6,680,980 $0 $7,000,780 $7,615,446 Last Revised: 21-00 - Submitted Total Programmed: $7,000,780 TIP ID CP-11098 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: N/A Project Title Additional Project IDs:CIP 08102 Pavement Management Program (PMP) Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Studies or PMP updates Provide updates to the City's PMP on odd years in compliance with Measure M2 eligibility requirements. Limits City-wide Project Notes Measure M Funds FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2025 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2027 Measure M2 Local Fairshare $110,000 $0 $0 $0 $110,000 $110,000 Totals:$210,000 $0 $0 $0 $210,000 $210,000 Last Revised: 21-00 - Submitted Total Programmed: $210,000 TIP ID CP-11106 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: N/A Project Title Additional Project IDs:CIP 19102 - Camino Capistrano Pavement Rehabilitation (Aeropuerto to Costco) Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Rehabilitation of roadway Rehabilitation of Camino Capistrano from Avenida Aeropuerto to Costco to improve roadway conditions. This arterial street is programmed for completion in FY21/22 when sufficient funding is available. Limits Avenida Aeropuerto to Costco Project Notes Fund 10 - Systems Development Funds Fund 52 - WH (Whispering Hills) Fund 53 - SA Bonds FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2022 Other $0 $0 $81,277 $0 $81,277 $83,797 2022 Measure M2 Local Fairshare $0 $0 $517,000 $0 $517,000 $533,027 2022 Gas Tax $0 $0 $403,000 $0 $403,000 $415,493 2022 Local Streets and Roads apportionments $0 $0 $811,750 $0 $811,750 $836,914 2023 Local Streets and Roads apportionments $0 $0 $741,000 $0 $741,000 $787,654 2023 Gas Tax $0 $0 $285,250 $0 $285,250 $303,210 2023 Measure M2 Local Fairshare $0 $0 $50,000 $0 $50,000 $53,148 Totals:$0 $0 $2,889,277 $0 $2,889,277 $3,013,243 Last Revised: 21-00 - Submitted Total Programmed: $2,889,277 ATTACHMENT 3 - Page 1 of 5 TIP ID CP-11108 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: N/A Project Title Additional Project IDs:CIP xxxxx - Mission Spring Streets Pavement Rehabilitation Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Rehabilitation of roadway Rehabilitation of local streets within the Mission Springs community including Ave. Siega, Via Errecarte, Paseo Boscana, Via Estenaga, Via Anzar, Via Ordaz and Calle Arroyo from Ave. Siega to Paseo Valencia in FY23-24 pending fund availability. Limits Various Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Gas Tax $175,000 $0 $162,000 $0 $337,000 $347,200 2023 Measure M2 Local Fairshare $0 $0 $492,000 $0 $492,000 $522,977 2023 Local Streets and Roads apportionments $0 $0 $756,000 $0 $756,000 $803,599 2024 Gas Tax $0 $0 $305,000 $0 $305,000 $334,253 Totals:$175,000 $0 $1,715,000 $0 $1,890,000 $2,008,029 Last Revised: 21-00 - Submitted Total Programmed: $1,890,000 TIP ID CP-11110 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: N/A Project Title Additional Project IDs:CIP xxxxx - Sun Ranch Streets Pavement Rehabilitation Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Rehabilitation of roadway Pavement rehabilitation of local streets within the Sun Ranch community including Calle Aspero, Peppertree Bend, Paseo de Elena, Aquacate Rd., Paseo Terraza, Via Carlos and Via Alicia for implementation in FY24-25. Limits Various Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2024 Gas Tax $175,000 $0 $162,000 $0 $337,000 $352,538 2024 Measure M2 Local Fairshare $0 $0 $485,000 $0 $485,000 $531,518 2025 Measure M2 Local Fairshare $0 $0 $50,000 $0 $50,000 $56,494 2025 Local Streets and Roads apportionments $0 $0 $771,000 $0 $771,000 $871,142 2025 Gas Tax $0 $0 $325,000 $0 $325,000 $367,213 Totals:$175,000 $0 $1,793,000 $0 $1,968,000 $2,178,905 Last Revised: 21-00 - Submitted Total Programmed: $1,968,000 TIP ID CP-11111 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: N/A Project Title Additional Project IDs:CIP xxxxx - Village San Juan and Casitas Capistrano Streets Pavement Rehabilitation Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Rehabilitation of roadway Rehabilitation of local streets within the two communities including Village Road, Calle Chueca, Calle Lorenzo, Calle Resplendor, Calle Bonita, Calle Santa Rosalia, Paseo Sereno, Paseo Acacia, Paseo Olivos and Via Los Pajaros for FY25-26 implementati Limits Various Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2025 Measure M2 Local Fairshare $0 $0 $581,000 $0 $581,000 $656,464 2025 Gas Tax $200,000 $0 $137,000 $0 $337,000 $354,794 2026 Gas Tax $0 $0 $544,000 $0 $544,000 $633,712 2026 Measure M2 Local Fairshare $0 $0 $220,000 $0 $220,000 $256,281 2026 Local Streets and Roads apportionments $0 $0 $786,000 $0 $786,000 $915,621 Totals:$200,000 $0 $2,268,000 $0 $2,468,000 $2,816,872 Last Revised: 21-00 - Submitted Total Programmed: $2,468,000 ATTACHMENT 3 - Page 2 of 5 TIP ID CP-11491 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number:Project Title Additional Project IDs:Mission Glenn and Mission Woods Streets Pavement Rehab Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Rehabilitation of roadway Roadway Pavement Rehabilitation within Mission Glenn and Mission Woods communities, for the following streets Via Madera, Via Sonora, Paseo Alba, Paseo Reposo, Paseo Barranca, Calle Villa Clara, Paseo Nicole, Paseo Tortug. Limits Calle Arroyo and Ortega Hwy Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2028 Measure M2 Local Fairshare $0 $0 $660,000 $0 $660,000 $817,249 2028 Gas Tax $200,000 $0 $450,000 $0 $650,000 $757,215 2028 Local Streets and Roads apportionments $0 $0 $650,000 $0 $650,000 $804,867 Totals:$200,000 $0 $1,760,000 $0 $1,960,000 $2,379,331 Last Revised: 21-00 - Submitted Total Programmed: $1,960,000 TIP ID CP-11291 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number:Project Title Additional Project IDs:New Traffic Signal at Rancho Viejo Rd. at Highland Drive Type of Work:Traffic Signals Project Description Type of Work Description:Traffic Signals - Install new traffic signals and equipment Installation of a new traffic signal at the intersection of Rancho Viejo Rd and Highland Drive due to demand. Limits Rancho Viejo Rd. at Highland Drive Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2027 Measure M2 Local Fairshare $36,000 $0 $44,000 $0 $80,000 $88,845 Totals:$36,000 $0 $44,000 $0 $80,000 $88,845 Last Revised: 21-00 - Submitted Total Programmed: $80,000 TIP ID CP-11288 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: 20-SJCP-ACE-3967 Project Title Additional Project IDs:Ortega Highway Improvements Project Type of Work:Road Widening Project Description Type of Work Description:Road Widening - Add 2 lanes to existing roadway in project limits Ortega Highway is planned to be widened to four lanes, two in each direction, between Calle Entradero and the easterly City limit. The widening project includes sidewalks, bike lanes, streetlights, sound walls, retaining walls, drainage facilities, Limits Calle Entradero to the City's Eastern limit Project Notes The project is managed by Caltrans as the lead agency and the funds will pass through from the City of San Juan Capistrano to the state towards the engineering design. Expected design phase contract award date: 06/30/2021. FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2022 Arterial Capacity Enhancements (ACE)$3,500,000 $0 $0 $0 $3,500,000 $3,500,000 2022 Developer $1,166,000 $0 $0 $0 $1,166,000 $1,166,000 Totals:$4,666,000 $0 $0 $0 $4,666,000 $4,666,000 Last Revised: 21-00 - Submitted Total Programmed: $4,666,000 TIP ID CP-11121 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: CIP 20102 Project Title Additional Project IDs:Public Right-of-Way ADA Implementation Plan Type of Work:Pedestrian Project Description Type of Work Description:Pedestrian - Installation of ADA access ramps This project will implement ADA compliance improvements within the City's right-of-way. Improvements include construction of ADA compliant ramps, sidewalks, installation of Audible Pedestrians Signal (APS) and push buttons. Limits Citywide Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2022 Gas Tax $0 $0 $10,000 $0 $10,000 $10,310 Totals:$0 $0 $10,000 $0 $10,000 $10,310 Last Revised: 21-00 - Submitted Total Programmed: $10,000 ATTACHMENT 3 - Page 3 of 5 TIP ID CP-11289 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number:Project Title Additional Project IDs:Rapid Flashing Beacon Type of Work:Safety Project Description Type of Work Description:Safety - Other This project is to replace the existing in-pavement crosswalk lights at Camino Del Avion and Avenida Descanso with rapid flashing beacons that are more visible to motorists and less costly to maintain. Limits Camino Del Avion at Avenida Descanso Project Notes Installation of Rapid Flashing Beacon at the pedestrian crosswalk. FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2022 Gas Tax $2,000 $0 $23,000 $0 $25,000 $25,713 Totals:$2,000 $0 $23,000 $0 $25,000 $25,713 Last Revised: 21-00 - Submitted Total Programmed: $25,000 TIP ID CP-11486 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: CIP22103 Project Title Additional Project IDs:SPRING STREET ADA RAMP AT EL CAMINO REAL Type of Work:Pedestrian Project Description Type of Work Description:Pedestrian - Installation of ADA access ramps The southeast corner of El Camino Real and Spring Street is near San Juan Elementary School and is heavily traveled with pedestrian school traffic. This project will provide ADA ramps at the southeast and northeast corners of the streets. Limits Spring Street and El Camino Real Street Project Notes Fund 81 - Facilities Maintenance Fund FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2022 Other $45,000 $0 $205,000 $0 $250,000 $256,355 Totals:$45,000 $0 $205,000 $0 $250,000 $256,355 Last Revised: 21-00 - Submitted Total Programmed: $250,000 TIP ID CP-11290 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number:Project Title Additional Project IDs:Speed Advisory Sign Type of Work:Safety Project Description Type of Work Description:Safety - Traffic calming such as bulbout, chokers, speed hump, etc. New speed advisory signs due to speeding on Calle Arroyo just west of Rancho Viejo Road. Solar-powered signs would be installed in both directions that display the speed of the approaching vehicles and would flash if the speed exceeds the posted Limits Calle Arroyo West of Racho Viejo Road Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2026 Gas Tax $3,000 $0 $19,000 $0 $22,000 $25,133 Totals:$3,000 $0 $19,000 $0 $22,000 $25,133 Last Revised: 21-00 - Submitted Total Programmed: $22,000 TIP ID CP-11292 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number:Project Title Additional Project IDs:Traffic Signal Synchronization Program Type of Work:Traffic Signals Project Description Type of Work Description:Traffic Signals - Interconnect traffic signals to improve coordination and communications This project will install fiber optics to better synchronize the traffic signals and provides a new monitoring system to adjust traffic signals remotely and record data such as speed and volume. Limits Del Obispo Street between the I-5 freeway and Alipaz Street Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2024 Agency Contribution $9,500 $0 $90,500 $0 $100,000 $108,680 2024 Unfunded/Unknown $38,000 $0 $362,000 $0 $400,000 $434,720 Totals:$47,500 $0 $452,500 $0 $500,000 $543,400 Last Revised: 21-00 - Submitted Total Programmed: $500,000 ATTACHMENT 3 - Page 4 of 5 TIP ID CP-11482 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: CIP22101 Project Title Additional Project IDs:Via Escolar Pavement Rehabilitation Project Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Rehabilitation of roadway The centerline of Via Escolar forms the boundary between the cities of Mission Viejo and San Juan Capistrano. This road has been in great need of repavement and rehabilitation. The two cities will split the cost of the pavement rehabilitation. Limits Rancho Viejo Road to the East end. Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2022 Gas Tax $0 $0 $100,000 $0 $100,000 $103,100 Totals:$0 $0 $100,000 $0 $100,000 $103,100 Last Revised: 21-00 - Submitted Total Programmed: $100,000 TIP ID CP-11139 IMPLEMENTING AGENCY San Juan Capistrano, City of Local Project Number: N/A Project Title Additional Project IDs:XXXXX - Mission Creek Streets Pavement Rehabilitation Project Type of Work:Road Maintenance Project Description Type of Work Description:Road Maintenance - Rehabilitation of roadway The following local streets within the Mission Creek community are programmed for completion: Paseo Valencia, Via Cristal, Via Solana, Via Cordova, Calle Raquel, Via Rubi, Via Perla and Calle Arroyo from Paseo Valencia to Via Cordova. Limits Various Project Notes FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2026 Gas Tax $117,000 $0 $0 $0 $117,000 $117,000 2026 Measure M2 Local Fairshare $83,000 $0 $333,000 $0 $416,000 $470,916 2027 Measure M2 Local Fairshare $0 $0 $288,000 $0 $288,000 $345,895 2027 Local Streets and Roads apportionments $0 $0 $802,000 $0 $802,000 $963,222 2027 Gas Tax $0 $0 $587,000 $0 $587,000 $705,002 Totals:$200,000 $0 $2,010,000 $0 $2,210,000 $2,602,035 Last Revised: 21-00 - Submitted Total Programmed: $2,210,000 ATTACHMENT 3 - Page 5 of 5 1 RESOLUTION NO. 21-06-01-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ADOPTING ITS ARTICLE XIIIB APPROPRIATIONS LIMITATION (GANN LIMITATION) FOR FISCAL YEAR 2021-22 WHEREAS, the voters of California on November 6, 1979, added Article XIIIB to the State Constitution placing various limitations on the appropriations of the State and local governments; and, WHEREAS, Article XIIIB provides that the appropriations limitation for Fiscal Year 2021-22 is calculated by adjusting the base year appropriations of Fiscal Year 1978- 79, with changes in California per capita personal income or non-residential assessed valuation and changes in City or County populations, and the recalculations of the appropriations limitation from the 1986-87 fiscal year as stipulated by Proposition 111; and, WHEREAS, the information regarding the change in non-residential assessed valuation due to new construction from the County of Orange is not available until after the establishment of the Fiscal Year 2021-22 appropriations limitation and the City reserves the right to adjust its Fiscal Year 2021-22 limitation as information regarding the change in non-residential assessed valuation due to new construction is made available by the County of Orange; and, WHEREAS, the information necessary for making these adjustments is attached as Exhibit A; and, WHEREAS, the City of San Juan Capistrano has complied with all the provisions of Article XIIIB and amendments thereto per Proposition 111 in determining the appropriations limitation for Fiscal Year 2021-22. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby: 1. Set the appropriations limitation for Fiscal Year 2021-22 at $88,373,720 as shown in attached Exhibit A. 2. Determine that the amount of the appropriations of the City of San Juan Capistrano for Fiscal Year 2021-22 that are subject to the limitation are $26,420,636; and, 3. Declare that the appropriations of the City of San Juan Capistrano for Fiscal Year 2021-22 that are subject to the limitation do not exceed the limitation. ATTACHMENT 4 - Page 1 of 2 2 PASSED, APPROVED, AND ADOPTED this 1st day of June 2021. JOHN TAYLOR, MAYOR ATTEST: MARIA MORRIS, CITY CLERK ATTACHMENT 4 - Page 2 of 2 EXHIBIT A 2021-22 APPROPRIATION LIMITATION CALCULATION 2021-22 APPROPRIATIONS LIMITATION: 2020-21 Limitation $84,237,651 x Annual adjustment factors: Population increase (for City) -0.78% 0.9922 Inflation charges (California personal income) 5.73% x 1.0573 Combining adjustment factors 1.0491 2021-22 Limitation $88,373,720 APPROPRIATIONS SUBJECT TO LIMITATION AND APPROPRIATIONS MARGIN: Budget appropriation 2021-22 $36,817,918 Less exclusions: Non-proceeds of taxes (13,818,394) Qualified debt services (2,184,655) Qualified capital outlay 565,000 Total exclusions (15,438,049) Add change in fund balance 5,040,767 Total appropriations subject to limitation $26,420,636 Appropriations margin $61,953,084 EXHIBIT A 1 RESOLUTION NO. 21-06-01-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA ESTABLISHING THE PROPERTY TAX RATE FOR VOTER-APPROVED BONDED INDEBTEDNESS (OPEN SPACE MEASURE Y) FOR FISCAL YEAR 2021-22 WHEREAS, in the election of November 4, 2008, the voters of the City of San Juan Capistrano approved bonded indebtedness and authorized the City Council of the City of San Juan Capistrano to establish the rate of property tax required to generate an amount of revenue from the tax base to provide sufficient moneys to pay debt service on the voter-approved bonded indebtedness payable during the fiscal year ending June 30, 2022; and, WHEREAS, the total net taxable secured assessed valuation of the City of San Juan Capistrano is estimated to be $9,173,542,155; and, WHEREAS, the total amount of revenue necessary to provide sufficient funds to pay debt service for the fiscal year ending June 30, 2022, is estimated to be $1,844,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Juan Capistrano does hereby: SECTION 1: Set the property tax rate within the City for the City of San Juan Capistrano 2017 Taxable General Obligation Refunding Bonds (Open Space Measure Y) for the fiscal year ending June 30, 2022, at $0.02010 per $100 assessed value. SECTION 2: Authorize and direct the City Manager and the City Treasurer to take any and all actions necessary to ensure that the Auditor-Controller of the County of Orange, California makes this levy and causes to be collected the amounts requested in Section 1 hereof at the time and in the manner of levying other County taxes. These amounts shall be reported separately as remittances are made to the City. SECTION 3: The City Clerk is hereby directed to furnish the Office of the Auditor-Controller, County of Orange, Attn: Yani Painter, Property Tax Section, P.O. Box 567, Santa Ana, CA 92702-0567. ATTACHMENT 5 - Page 1 of 2 2 PASSED, APPROVED AND ADOPTED this 1st day of June 2022. JOHN TAYLOR, MAYOR ATTEST: ________________________________________ MARIA MORRIS, CITY CLERK ATTACHMENT 5 - Page 2 of 2 1 CITY OF SAN JUAN CAPISTRANO INVESTMENT POLICY FIRST ADOPTED: APRIL 4, 1995 LAST REVIEW AND AMENDMENT: JUNE 411, 20198 CURRENT REVIEW AND AMENDMENT: JUNE 14, 202119 I. POLICY STATEMENT It is the policy of the City of San Juan Capistrano (City) to invest public funds in a manner which will provide security of principal invested, meet the daily cash flow needs of the City, seek to achieve a market rate of return throughout budgetary and economic cycles, and conform to the California Government Code sections governing the investment of public funds. II. SCOPE This Investment Policy applies to all financial assets and funds held by the City of San Juan Capistrano with the exception of deferred compensation assets (pension and other post-employment benefits) held in a trust and funds held by bond trustee that are controlled by the legal requirements of a debt indenture. For purposes of this policy, the “City of San Juan Capistrano” includes all funds of the City, the funds of the Successor Agency to the Community Redevelopment Agency of the City of San Juan Capistrano, the funds of the San Juan Capistrano Housing Authority, and the funds of any component unit that may be established by the City. III. OBJECTIVES The primary objectives, in priority order, of the City of San Juan Capistrano's investment activities shall be: A. SAFETY OF PRINCIPAL - Safety of principal is the foremost objective of the City. Investments of the City shall be undertaken in a manner that seeks to insure the preservation of capital in the portfolio. One of the methods to obtain this goal is diversification which is required in the portfolio's composition. B. LIQUIDITY - The City's investment portfolio will remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated. "Liquidity" refers to the ability to sell at any given moment with a minimal chance of losing some portion of principal or interest. C. RETURN - The City's investment portfolio shall be designed with the objective of attaining a market average rate of return throughout budgetary and economic cycles, taking into account the City's risk constraints and cash flow needs. ATTACHMENT 6 - Page 1 of 14 2 The City shall not engage in any activity that is designed to raise funds specifically for the purpose of investing (i.e., borrowing funds to invest, or leveraging). The City is not restricted from investing proceeds from a bonafide debt issuance in accordance with this investment policy until such time as funds are needed for the purpose intended. IV. DELEGATION OF AUTHORITY A. The authority of the City Council to invest or reinvest funds of the City is delegated to the Chief Financial Officer (hereafter referred to as “City Treasurer”), who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires. Subject to review, the City Council may renew the delegation of authority each year. B. The City may delegate investment authority to an investment advisor. The advisor will follow the Investment Policy and such other written instructions as are provided. C. The City Treasurer shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the City Treasurer is not present. D. No officer or designee may engage in an investment transaction except as provided under terms of this Investment Policy and the procedures established by the City Treasurer and approved by the City Manager. E. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. F. The City Treasurer and other personnel involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. ATTACHMENT 6 - Page 2 of 14 3 V. PRUDENCE A. The standard of prudence to be used in the investment function shall be the "prudent investor" standard and shall be applied in the context of managing the overall portfolio. This standard states, "When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." B. The City Treasurer, acting in accordance with written procedures and this Investment Policy, shall not be held personally accountable for a specific security's credit risk or market price change, provided that any unexpected deviations are reported in a timely manner and that appropriate action is taken to control adverse development. C. The City may invest debt issuance proceeds to match or meet the anticipated timing of the expenditures. The City may not incur debt with the specific and sole purpose of arbitrage investment. VI. INTERNAL CONTROLS/INVESTMENT PROCEDURES A The City Treasurer shall establish a system of internal controls which will be reviewed annually by the independent auditor. The controls shall be designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, unanticipated market changes or imprudent actions by employees of the City of San Juan Capistrano. B. The City Treasurer shall develop and maintain investment procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures may include reference to safekeeping/custody, wire transfer agreements, collateral and deposit agreements, and other investment related activities. VII. AUTHORIZED INVESTMENTS Where this Policy specifies a percentage limitation for a particular security type or issuer, that percentage is applicable at the time the security is purchased. Diversification criteria listed in Section VIII and credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the City’s investment advisor (if any) and Treasurer will review the rating agency action may at his or her option sell the affected investment, but is not required to do so. The Treasurer has the same option with respect to the Diversification criteria listed ATTACHMENT 6 - Page 3 of 14 4 in Section VIII. Investments that complied with Investment type and per issuer limitations at the time of purchase do not become noncompliant if at a later date the percentage of the portfolio applicable to that investment changes as a result of a change in the size of the portfolio. A. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. B. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government sponsored enterprises. C. FDIC insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts, time certificates of deposits (“TCDs”) and other types of bank deposits in financial institutions located in the State of California. In accordance with California Government Code Section 53635.2, to be eligible to receive City deposits, a financial institution shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits shall be made with a state or federal credit union if a member of the City Council or the Chief Financial Officer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit shall not exceed that total shareholder’s equity of any depository bank, nor shall the deposit exceed the total net worth of any institution. D. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or state-licensed branch of a foreign bank. Negotiable certificates of deposit with maturities in excess of one year must be rated in a rating category of “A” or its equivalent or better by at least two (NRSROs). Negotiable certificates of deposit with maturities under one year must be rated in a rating category of “A-1” its equivalent or better by at least two nationally recognized statistical-rating organizations (NRSRO). No more than 30% of the City’s investment portfolio may be invested in negotiable certificates of deposit. ATTACHMENT 6 - Page 4 of 14 5 E. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies shall either: have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than 5 years of experience managing money market mutual funds and with assets under management in excess of $500,000,000, or attain the highest ranking letter or numerical rating provided by not less than two of the three largest NRSROs. F. The State of California Local Agency Investment Fund (LAIF), as authorized by the Government Code Section 16429.1. G. Orange County Investment Pool, as authorized by the Government Code Section 53684. H. Local government investment pools (LGIPs), as authorized by the Government Code Section 53601(p). I. Taxable or tax-exempt warrants, notes, bonds or similar evidences of indebtedness issued by the State of California, a department, board, agency, or authority of the State, or any local agency within the State of California having received a rating in a rating category of “A” its equivalent or better by at least two NRSROs. Obligations eligible for investment under this subdivision with maturities under one year must be rated in a rating category of “A-1” its equivalent or better by two NRSROs. J. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. Obligations eligible for investment under this subdivision must be rated in a rating category of "A" or its equivalent or better by at least two NRSROs. Obligations eligible for investment under this subdivision with maturities under one year must be rated in a rating category of “A-1” or its equivalent or better by two NRSROs. K. Bankers’ acceptances that are drawn on and accepted by a commercial bank. Eligible bankers’ acceptances shall have the highest ranking or the highest letter and number rating in the rating category as provided for by at least two NRSROs and a maximum maturity of 180 days. L. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by at least two NRSROs. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): ATTACHMENT 6 - Page 5 of 14 6 1) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher or its equivalent by at least two NRSROs. 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company. b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. c. Has commercial paper that is rated in a rating category of “A-1” or higher or its equivalent by at least two NRSROs. Eligible commercial paper shall have a maximum maturity of 270 days. Investments may not represent more than 10% of the outstanding commercial paper of any single corporate issue. M. Medium-term corporate notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of 5 years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Medium-term corporate notes shall be rated in a rating category “A” or its equivalent or better by at least two NRSROs. N. Supranationals, defined as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AAA” or its equivalent or better by at least two NRSROs. NO. Asset-Backed Securities (ABS), any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-back certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maximum of five years maturity from issuers not defined in sections A and B of the Authorized Investments section of this policy. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by at least two NRSROs. ATTACHMENT 6 - Page 6 of 14 7 If additional types of securities are approved for investment of public funds by the California Government Code, they will not be eligible for investment by the City of San Juan Capistrano until this Investment Policy is amended and the amendment is passed by the City Council. VIII. DIVERSIFICATION AND MATURITY A. It is the policy of the City to diversify its investment portfolio. Invested funds shall be diversified to minimize the risk of loss resulting from over concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed by the City Treasurer and City Manager. The minimum diversification standards by security type and issuer shall be: U.S. Treasuries and securities having principal and interest guaranteed by the U.S. Government ............................................................. 100% U.S. Government agencies, instrumentalities and government Sponsored enterprises ............................................................ no more than 100% Bank Deposits ........................................................................... no more than 25% Negotiable CDs ......................................................................... no more than 30% Money market funds… .............................................. no more than 20% combined Local Agency Investment Funds (LAIF) ................................... no more than 100% Orange County Investment Pool ................................................ no more than 40% Local government investment pools (LGIPs) ............................ no more than 40% Municipal obligations ................................................................. no more than 25% Bankers’ acceptances ............................................................... no more than 30% Commercial paper ..................................................................... no more than 25% Medium-term corporate notes.................................................... no more than 30% International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IADB) (Supranationals) no more than 15% Asset-Backed Securities, Mortgage Pass Throughs and CMOs from issuers not defined in sections A and B of the Authorized Investments ....... no more than 20% No more than 3% of the City’s investment portfolio may be invested in the securities of any one issuer regardless of security type excluding U.S. Treasuries, U.S. Government agencies, FDIC-insured CDs, Supranationals, and pooled investments such as LAIF, LGIPs, and money market funds. B. The City shall not invest in a security whose maturity exceeds five years from the date of purchase unless City Council has provided approval for a specific purpose at least 90 days before the investment is made. C The City Treasurer shall select investment maturities such that they provide necessary liquidity, manage interest rate risk, and optimize earnings. Because of inherent difficulties in accurately forecasting cash flow requirements, the weighted average maturity of the investment portfolio ATTACHMENT 6 - Page 7 of 14 8 shall not exceed 3.0 years. For those investment types for which this Policy does not specify a maturity limit, no individual investment shall exceed a maturity of five years from the date of purchase unless the City Council has granted express authority to purchase that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to purchase of the investment. IX. PROHIBITED INVESTMENT VEHICLES AND PRACTICES  State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.  In accordance with California Government Code, Section 53601.6 investment in inverse floaters, range notes, or mortgage-derived interest- only strips is prohibited.  Investment in any security that could result in a zero- interest accrual if held to maturity is prohibited.  Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.  Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.  The purchase of foreign currency denominated securities is prohibited.  The purchase of supranational securities is prohibited. X. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS For investment purchases made directly by City personnel, the City Treasurer will maintain a list of financial dealers and institutions qualified and authorized to transact business with the City. The purchase by the City of any investment other than those purchased directly from the issuer, will be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, which is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a federally regulated securities exchange, a national or state chartered bank, a federal or state association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank. The City Treasurer will investigate all institutions that wish to do business with the City to determine if they are adequately capitalized, make markets in securities appropriate for the City’s needs, and agree to abide by the conditions set forth in this City’s Investment Policy and any other guidelines that may be provided. This will be done annually by having the financial institutions: 1. Provide written notification that they have read, and will abide by, the City’s Investment Policy. ATTACHMENT 6 - Page 8 of 14 9 2. Submit their most recent audited Financial Statement within 120 days of the institution’s fiscal year end. If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained. This section does not apply to investment purchases under the direct management of a professional investment management firm approved by the City Council. XI. INVESTMENT POOLS The City Treasurer will perform an annual review of the investment policy. XII. SAFEKEEPING/CUSTODY AND COLLATERALIZATION A. All security transactions entered into by the City shall be conducted on a delivery versus payment (DVP) basis. B. Where applicable, all securities shall be held by a third-party bank custodian designated by the City Treasurer. The third-party custodian shall be required to issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) LAIF and local government investment pools; (ii) placement certificates of deposit, and, (iii) money market mutual funds, since the purchased securities are not deliverable. Evidence of each these investments will be held by the City Treasurer. C. Collateralization on bank deposits (including Certificates of Deposit and Passbook Savings Account Demand Deposit) shall be required in accordance with state law. XIII. REPORTING A. The City Treasurer shall make a monthly report of investment transactions and holdings to the City Council. B. If the City has an investment advisor, the investment advisor shall periodically report on the activity and results of the funds being managed by the investment advisor. C. The City Treasurer shall include a report on investment holdings in the City's Comprehensive Annual Financial Report as required by generally accepted ATTACHMENT 6 - Page 9 of 14 10 accounting principles (GAAP) and the Governmental Accounting Standards Board (GASB). XIV. PERFORMANCE EVALUATION The City shall monitor performance of the portfolio in conjunction with input from the City’s professional investment manager. XV. INVESTMENT POLICY ADOPTION The City's Investment Policy shall be reviewed periodically. Any recommended modifications shall be reviewed and approved by the City Council. XVI. GLOSSARY OF INVESTMENT TERMS AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities. FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities. GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds. ASKED. The price at which a seller offers to sell a security. ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit. AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor. BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. BID. The price at which a buyer offers to buy a security. BROKER. A broker brings buyers and sellers together for a transaction for which the broker ATTACHMENT 6 - Page 10 of 14 11 receives a commission. A broker does not sell securities from his own position. CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained. COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. COMMERCIAL PAPER. The short-term unsecured debt of corporations. COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. COUPON. The rate of return at which interest is paid on a bond. CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. DEBENTURE. A bond secured only by the general credit of the issuer. DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent. DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index. DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive ATTACHMENT 6 - Page 11 of 14 12 exposure to any one source of risk. DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it. FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. LIQUIDITY. The speed and ease with which an asset can be converted to cash. LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office. LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds. MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral. MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. MARKET VALUE. The price at which a security can be traded. MARKING TO MARKET. The process of posting current market values for securities in a portfolio. MATURITY. The final date upon which the principal of a security becomes due and payable. MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk. MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded. MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses. MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). ATTACHMENT 6 - Page 12 of 14 13 A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's. NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par. PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer. REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement. SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name. STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten- year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries. TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The ATTACHMENT 6 - Page 13 of 14 14 Treasury issues both discounted securities and fixed coupon notes and bonds. TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows. TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually. TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually. VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. ATTACHMENT 6 - Page 14 of 14 1 CITY OF SAN JUAN CAPISTRANO INVESTMENT POLICY FIRST ADOPTED: APRIL 4, 1995 LAST REVIEW AND AMENDMENT: JUNE 4, 2019 CURRENT REVIEW AND AMENDMENT: JUNE 1, 2021 I. POLICY STATEMENT It is the policy of the City of San Juan Capistrano (City) to invest public funds in a manner which will provide security of principal invested, meet the daily cash flow needs of the City, seek to achieve a market rate of return throughout budgetary and economic cycles, and conform to the California Government Code sections governing the investment of public funds. II. SCOPE This Investment Policy applies to all financial assets and funds held by the City of San Juan Capistrano with the exception of deferred compensation assets (pension and other post-employment benefits) held in a trust and funds held by bond trustee that are controlled by the legal requirements of a debt indenture. For purposes of this policy, the “City of San Juan Capistrano” includes all funds of the City, the funds of the Successor Agency to the Community Redevelopment Agency of the City of San Juan Capistrano, the funds of the San Juan Capistrano Housing Authority, and the funds of any component unit that may be established by the City. III. OBJECTIVES The primary objectives, in priority order, of the City of San Juan Capistrano's investment activities shall be: A. SAFETY OF PRINCIPAL - Safety of principal is the foremost objective of the City. Investments of the City shall be undertaken in a manner that seeks to insure the preservation of capital in the portfolio. One of the methods to obtain this goal is diversification which is required in the portfolio's composition. B. LIQUIDITY - The City's investment portfolio will remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated. "Liquidity" refers to the ability to sell at any given moment with a minimal chance of losing some portion of principal or interest. C. RETURN - The City's investment portfolio shall be designed with the objective of attaining a market average rate of return throughout budgetary and economic cycles, taking into account the City's risk constraints and cash flow needs. ATTACHMENT 7 - Page 1 of 13 2 The City shall not engage in any activity that is designed to raise funds specifically for the purpose of investing (i.e., borrowing funds to invest, or leveraging). The City is not restricted from investing proceeds from a bonafide debt issuance in accordance with this investment policy until such time as funds are needed for the purpose intended. IV. DELEGATION OF AUTHORITY A. The authority of the City Council to invest or reinvest funds of the City is delegated to the Chief Financial Officer (hereafter referred to as “City Treasurer”), who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires. Subject to review, the City Council may renew the delegation of authority each year. B. The City may delegate investment authority to an investment advisor. The advisor will follow the Investment Policy and such other written instructions as are provided. C. The City Treasurer shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the City Treasurer is not present. D. No officer or designee may engage in an investment transaction except as provided under terms of this Investment Policy and the procedures established by the City Treasurer and approved by the City Manager. E. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. F. The City Treasurer and other personnel involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. V. PRUDENCE A. The standard of prudence to be used in the investment function shall be the "prudent investor" standard and shall be applied in the context of managing the overall portfolio. This standard states, "When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." ATTACHMENT 7 - Page 2 of 13 3 B. The City Treasurer, acting in accordance with written procedures and this Investment Policy, shall not be held personally accountable for a specific security's credit risk or market price change, provided that any unexpected deviations are reported in a timely manner and that appropriate action is taken to control adverse development. C. The City may invest debt issuance proceeds to match or meet the anticipated timing of the expenditures. The City may not incur debt with the specific and sole purpose of arbitrage investment. VI. INTERNAL CONTROLS/INVESTMENT PROCEDURES A The City Treasurer shall establish a system of internal controls which will be reviewed annually by the independent auditor. The controls shall be designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, unanticipated market changes or imprudent actions by employees of the City of San Juan Capistrano. B. The City Treasurer shall develop and maintain investment procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures may include reference to safekeeping/custody, wire transfer agreements, collateral and deposit agreements, and other investment related activities. VII. AUTHORIZED INVESTMENTS Where this Policy specifies a percentage limitation for a particular security type or issuer, that percentage is applicable at the time the security is purchased. Diversification criteria listed in Section VIII and credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the City’s investment advisor (if any) and Treasurer will review the rating agency action may at his or her option sell the affected investment, but is not required to do so. The Treasurer has the same option with respect to the Diversification criteria listed in Section VIII. Investments that complied with Investment type and per issuer limitations at the time of purchase do not become noncompliant if at a later date the percentage of the portfolio applicable to that investment changes as a result of a change in the size of the portfolio. A. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. B. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government sponsored enterprises. ATTACHMENT 7 - Page 3 of 13 4 C. FDIC insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts, time certificates of deposits (“TCDs”) and other types of bank deposits in financial institutions located in the State of California. In accordance with California Government Code Section 53635.2, to be eligible to receive City deposits, a financial institution shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits shall be made with a state or federal credit union if a member of the City Council or the Chief Financial Officer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit shall not exceed that total shareholder’s equity of any depository bank, nor shall the deposit exceed the total net worth of any institution. D. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or state-licensed branch of a foreign bank. Negotiable certificates of deposit with maturities in excess of one year must be rated in a rating category of “A” or its equivalent or better by at least two (NRSROs). Negotiable certificates of deposit with maturities under one year must be rated in a rating category of “A-1” its equivalent or better by at least two nationally recognized statistical-rating organizations (NRSRO). No more than 30% of the City’s investment portfolio may be invested in negotiable certificates of deposit. E. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies shall either: have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than 5 years of experience managing money market mutual funds and with assets under management in excess of $500,000,000, or attain the highest ranking letter or numerical rating provided by not less than two of the three largest NRSROs. F. The State of California Local Agency Investment Fund (LAIF), as authorized by the Government Code Section 16429.1. ATTACHMENT 7 - Page 4 of 13 5 G. Orange County Investment Pool, as authorized by the Government Code Section 53684. H. Local government investment pools (LGIPs), as authorized by the Government Code Section 53601(p). I. Taxable or tax-exempt warrants, notes, bonds or similar evidences of indebtedness issued by the State of California, a department, board, agency, or authority of the State, or any local agency within the State of California having received a rating in a rating category of “A” its equivalent or better by at least two NRSROs. Obligations eligible for investment under this subdivision with maturities under one year must be rated in a rating category of “A-1” its equivalent or better by two NRSROs. J. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. Obligations eligible for investment under this subdivision must be rated in a rating category of "A" or its equivalent or better by at least two NRSROs. Obligations eligible for investment under this subdivision with maturities under one year must be rated in a rating category of “A-1” or its equivalent or better by two NRSROs. K. Bankers’ acceptances that are drawn on and accepted by a commercial bank. Eligible bankers’ acceptances shall have the highest ranking or the highest letter and number rating in the rating category as provided for by at least two NRSROs and a maximum maturity of 180 days. L. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by at least two NRSROs. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 1) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher or its equivalent by at least two NRSROs. 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company. b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. ATTACHMENT 7 - Page 5 of 13 6 c. Has commercial paper that is rated in a rating category of “A-1” or higher or its equivalent by at least two NRSROs. Eligible commercial paper shall have a maximum maturity of 270 days. Investments may not represent more than 10% of the outstanding commercial paper of any single corporate issue. M. Medium-term corporate notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of 5 years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Medium-term corporate notes shall be rated in a rating category “A” or its equivalent or better by at least two NRSROs. N. Asset-Backed Securities (ABS), any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-back certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maximum of five years maturity from issuers not defined in sections A and B of the Authorized Investments section of this policy. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by at least two NRSROs. If additional types of securities are approved for investment of public funds by the California Government Code, they will not be eligible for investment by the City of San Juan Capistrano until this Investment Policy is amended and the amendment is passed by the City Council. VIII. DIVERSIFICATION AND MATURITY A. It is the policy of the City to diversify its investment portfolio. Invested funds shall be diversified to minimize the risk of loss resulting from over concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed by the City Treasurer and City Manager. The minimum diversification standards by security type and issuer shall be: U.S. Treasuries and securities having principal and interest guaranteed by the U.S. Government ............................................................. 100% U.S. Government agencies, instrumentalities and government Sponsored enterprises ............................................................ no more than 100% Bank Deposits ........................................................................... no more than 25% Negotiable CDs ......................................................................... no more than 30% Money market funds… .............................................. no more than 20% combined Local Agency Investment Funds (LAIF) ................................... no more than 100% Orange County Investment Pool ................................................ no more than 40% ATTACHMENT 7 - Page 6 of 13 7 Local government investment pools (LGIPs) ............................ no more than 40% Municipal obligations ................................................................. no more than 25% Bankers’ acceptances ............................................................... no more than 30% Commercial paper ..................................................................... no more than 25% Medium-term corporate notes.................................................... no more than 30% Asset-Backed Securities, Mortgage Pass Throughs and CMOs from issuers not defined in sections A and B of the Authorized Investments ....... no more than 20% No more than 3% of the City’s investment portfolio may be invested in the securities of any one issuer regardless of security type excluding U.S. Treasuries, U.S. Government agencies, FDIC-insured CDs, and pooled investments such as LAIF, LGIPs, and money market funds. B. The City shall not invest in a security whose maturity exceeds five years from the date of purchase unless City Council has provided approval for a specific purpose at least 90 days before the investment is made. C The City Treasurer shall select investment maturities such that they provide necessary liquidity, manage interest rate risk, and optimize earnings. Because of inherent difficulties in accurately forecasting cash flow requirements, the weighted average maturity of the investment portfolio shall not exceed 3.0 years. For those investment types for which this Policy does not specify a maturity limit, no individual investment shall exceed a maturity of five years from the date of purchase unless the City Council has granted express authority to purchase that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to purchase of the investment. IX. PROHIBITED INVESTMENT VEHICLES AND PRACTICES  State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.  In accordance with California Government Code, Section 53601.6 investment in inverse floaters, range notes, or mortgage-derived interest- only strips is prohibited.  Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited.  Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.  Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.  The purchase of foreign currency denominated securities is prohibited.  The purchase of supranational securities is prohibited. ATTACHMENT 7 - Page 7 of 13 8 X. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS For investment purchases made directly by City personnel, the City Treasurer will maintain a list of financial dealers and institutions qualified and authorized to transact business with the City. The purchase by the City of any investment other than those purchased directly from the issuer, will be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, which is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a federally regulated securities exchange, a national or state chartered bank, a federal or state association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank. The City Treasurer will investigate all institutions that wish to do business with the City to determine if they are adequately capitalized, make markets in securities appropriate for the City’s needs, and agree to abide by the conditions set forth in this City’s Investment Policy and any other guidelines that may be provided. This will be done annually by having the financial institutions: 1. Provide written notification that they have read, and will abide by, the City’s Investment Policy. 2. Submit their most recent audited Financial Statement within 120 days of the institution’s fiscal year end. If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained. This section does not apply to investment purchases under the direct management of a professional investment management firm approved by the City Council. XI. INVESTMENT POOLS The City Treasurer will perform an annual review of the investment policy. XII. SAFEKEEPING/CUSTODY AND COLLATERALIZATION A. All security transactions entered into by the City shall be conducted on a delivery versus payment (DVP) basis. B. Where applicable, all securities shall be held by a third-party bank custodian designated by the City Treasurer. The third-party custodian shall be ATTACHMENT 7 - Page 8 of 13 9 required to issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) LAIF and local government investment pools; (ii) placement certificates of deposit, and, (iii) money market mutual funds, since the purchased securities are not deliverable. Evidence of each these investments will be held by the City Treasurer. C. Collateralization on bank deposits (including Certificates of Deposit and Passbook Savings Account Demand Deposit) shall be required in accordance with state law. XIII. REPORTING A. The City Treasurer shall make a monthly report of investment transactions and holdings to the City Council. B. If the City has an investment advisor, the investment advisor shall periodically report on the activity and results of the funds being managed by the investment advisor. C. The City Treasurer shall include a report on investment holdings in the City's Comprehensive Annual Financial Report as required by generally accepted accounting principles (GAAP) and the Governmental Accounting Standards Board (GASB). XIV. PERFORMANCE EVALUATION The City shall monitor performance of the portfolio in conjunction with input from the City’s professional investment manager. XV. INVESTMENT POLICY ADOPTION The City's Investment Policy shall be reviewed periodically. Any recommended modifications shall be reviewed and approved by the City Council. XVI. GLOSSARY OF INVESTMENT TERMS AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and ATTACHMENT 7 - Page 9 of 13 10 liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities. FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities. GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds. ASKED. The price at which a seller offers to sell a security. ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit. AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor. BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. BID. The price at which a buyer offers to buy a security. BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained. COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. COMMERCIAL PAPER. The short-term unsecured debt of corporations. COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. ATTACHMENT 7 - Page 10 of 13 11 COUPON. The rate of return at which interest is paid on a bond. CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. DEBENTURE. A bond secured only by the general credit of the issuer. DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent. DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index. DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it. FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. LIQUIDITY. The speed and ease with which an asset can be converted to cash. LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office. LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds. MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral. ATTACHMENT 7 - Page 11 of 13 12 MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. MARKET VALUE. The price at which a security can be traded. MARKING TO MARKET. The process of posting current market values for securities in a portfolio. MATURITY. The final date upon which the principal of a security becomes due and payable. MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk. MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded. MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses. MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's. NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market. PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par. PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. ATTACHMENT 7 - Page 12 of 13 13 REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer. REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement. SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name. STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten- year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries. TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows. TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually. TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually. VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. ATTACHMENT 7 - Page 13 of 13 Page 1 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 FIVE–YEAR AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE COUNTY OF ORANGE THIS AGREEMENT, entered into this First day of May 2020, which date is enumerated for purposes of reference only, by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as “CITY” and the COUNTY OF ORANGE, a political subdivision of the State of California, hereinafter referred to as “COUNTY.” WITNESSETH: WHEREAS, CITY wishes to contract with COUNTY for law enforcement services; and WHEREAS, COUNTY is agreeable to the rendering of such services, as authorized in Government Code Sections 51301 and 55632, on the terms and conditions hereinafter set forth. NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: // // // // // // // // // // Page 3 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 A. TERM: The term of this Agreement shall be for five (5) years, commencing July 1, 2020 and terminating June 30, 2025, unless earlier terminated by either party in the manner set forth herein. B. OPTIONAL TERMINATION: COUNTY or CITY may terminate this Agreement, without cause, upon one - hundred and eighty (180) days written notice to the other party. C. REGULAR SERVICES BY COUNTY: 1. COUNTY, through its Sheriff-Coroner and deputies, officers and employees, hereinafter referred to as “SHERIFF,” shall render to CITY law enforcement services as hereinafter provided. Suc h services shall include the enforcement of lawful State statutes and lawful municipal ordinances of CITY other than licensing ordinances. 2. The night, day and evening patrol and supervisory shifts will be established by SHERIFF. Personnel of each shift may work varying and different times and may be deployed to other shifts when, in the opinion of SHERIFF and CITY Manager, the need arises. Any long-term shift deployment change will be reported to the City Council. 3. Each fiscal year, COUNTY shall submit to CITY, in writing, a recommended level of service for the following fiscal year. CITY shall remit to COUNTY, in writing, its response to the recommended level of service. If the parties are unable to agree by June 30 of any fiscal year on the level of serv ice to be provided by COUNTY to CITY or on the amount to be paid by CITY for services to be provided by COUNTY for the following fiscal year, this Agreement will terminate as of September 30 of the following fiscal year. If the parties do not agree by Jun e 30 on the level of service and cost of service for the following fiscal year, between July 1 and September 30 of the following fiscal year, COUNTY will provide the level of service provided Page 4 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 C. REGULAR SERVICES BY COUNTY: (Continued) in the preceding fiscal year, and CITY shall be obligated to pay the costs of such services. The full cost of such services may exceed the cost of similar services provided in the prior fiscal year. 4. The level of service, other than for licensing, to be provided by the COUNTY for the period July 1, 2020 through June 30, 2021, is set forth in Attachment A and incorporated herein by this reference. 5. For any service listed in Attachment A of this Agreement that is provided to CITY at less than 100% of a full-time SHERIFF position, COUNTY retains the option to terminate such service in the event the other city or cities which contract(s) for the balance of the time of the employee providing the service no longer pay(s) for such service and CITY does not request the Agreement be amended to pay 100% of the cost of the employee providing such service. The Maximum Obligation of CITY set forth in Subsection G -2 will be adjusted accordingly. 6. All services contracted for in this Agreement may not be operational on the precise date specified in this Agreement. In those instances, SHERIFF shall notify CITY Manager of the date or dates such service or services are to be implemented. SHERIFF shall reduce the monthly charges to CITY, based on the actual date of implementation of the service or s ervices. Charges shall be reduced on the next monthly billing tendered in accordance with Subsection G-5 of this Agreement. 7. During emergencies, such as a mutual aid situation, SHERIFF will attempt to leave in CITY the Lieutenant in charge of CITY Police S ervices. If SHERIFF determines that the Lieutenant is needed elsewhere, SHERIFF will notify CITY’s Manager within four (4) hours. SHERIFF will return the Lieutenant to CITY as soon as possible once the emergency situation is under control. Page 5 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 C. REGULAR SERVICES BY COUNTY: (Continued) 8. With respect to the licensing ordinances of CITY listed in Attachment B hereto, which is incorporated herein by this reference, SHERIFF shall receive applications for CITY licenses pursuant to said ordinances and complete investigations relating to such applications. Said investigations shall be forwarded to CITY Manager. COUNTY shall not provide any advisory, administrative, hearing or litigation attorney support or services related to licensing. COUNTY shall not provide any administrative or investigatory services related to the licensing ordinances listed in Attachment B, hereto, except the investigations relating to initial applications for which this subsection provides. 9. COUNTY or CITY, upon thirty (30) days notice and mutual written agreement, shall increase or decrease the service levels provided herein, and the obligation of CITY to pay for services shall be concomitantly adjusted. 10. With the limitations set forth below, SHERIFF, on behalf of COUNTY, and CITY Manager, on behalf of CITY, are authorized to execute written amendments to this Agreement to increase or decrease the level of service set forth in Attachment A, when SHERIFF and CITY Manager mutually agree that such increase or decrease in the level of service is ap propriate. Any such amendment to the Agreement shall concomitantly increase or decrease the cost of services payable by CITY set forth in Attachment C and incorporated herein by this reference, and the Maximum Obligation of CITY set forth in Subsection G-2, in accordance with the current year’s COUNTY law enforcement cost study. SHERIFF and CITY Manager shall file copies of any such amendments to this Agreement with the Clerk of COUNTY’s Board of Supervisors and CITY’s Clerk. Amendments to this Agreement executed by SHERIFF and CITY Manager may not, in the aggregate, Page 6 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 C. REGULAR SERVICES BY COUNTY: (Continued) increase or decrease the cost of services payable by CITY by more than one percent (1%) of the total cost originally set forth in Attachment C and the Maximum Obligation originally set forth in Subsection G-2 for FY 2020-21. Prior approval by COUNTY’s Board of Supervisors and CITY’s Council is required before execution of any amendment that brings the aggregate total of changes in costs payable by CITY to more than one percent (1%) of the total cost originally set forth in Attachment C and the Maximum Obligation originally set forth in Subsection G-2 of this Agreement for FY 2020-21. D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: 1. Enhanced services for events on CITY property. At the request of CITY, through its City Manager, SHERIFF may provide enhanced law enforcement services for functions, such as community events, conducted on property that is owned, leased or operated by CITY. SHERIFF shall determi ne personnel and equipment needed for such enhanced services. To the extent the services provided at such events are at a level greater than that specified in Attachment C of this Agreement, CITY shall reimburse COUNTY for such additional services, at an amount computed by SHERIFF, based on the current year's COUNTY law enforcement cost study. The cost of these enhanced services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. SHERIFF shall bill CITY immediately after each such event. 2. Supplemental services for occasional events operated by private individuals and entities on non-CITY property. At the request of CITY, through its City Manager, and within the limitations set forth in this subsection D -2, SHERIFF may provide supplemental law enforcement services to preserve the peace at special events or occurrences that occur on an occasional basis and are operated by private individuals or private Page 7 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued) entities on non-CITY property. SHERIFF shall determine personnel and equipment needed for such supplemental services, and will provide such supplemental services only if SHERIFF is able to do so without reducing the normal and regular ongoing services that SHERIFF otherwise would provide to CITY pursuant to this Agreement. Such supplemental services shall be provided only by regularly appointed full-time peace officers, at rates of pay governed by a Memorandum of Understanding between COUNTY and the bargaining unit(s) representing the peace officers providing the services. Such supplemental services shall include only law enforcement duties and shall not include services authorized to be provided by a private patrol operator, as defined in Section 7582.1 of the Business and Professions Code. Law enforcement support functions, including, but not limited to, clerical functions and forensic science services, may be performed by non -peace officer personnel if the services do not involve patrol or keeping the peace and are incidental to the provision of law enforcement services. CITY shall reimburse COUNTY its full, actual costs of providing such supplemental services at an amount computed by SHERIFF, based on the current year's COUNTY law enforcement cost study. The cost of these supplemental services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. SHERIFF shall bill CITY immediately after each such event. 3. Supplemental services for events operated by p ublic entities on non-CITY property. At the request of CITY, through its City Manager, and within the limitations set forth in this subsection D-3, SHERIFF may provide supplemental law enforcement services to preserve the peace at special events or occurrences that occur on an occasional basis and are operated Page 8 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued) by public entities on non-CITY property. SHERIFF shall determine personnel and equipment needed for such supplemental services, and will provide such supplemental services only if SHERIFF is able to do so without reducing services that SHERIFF otherwise would provide to CITY pursuant to this Agreement. CITY shall reimburse COUNTY its full, actual costs of providing such supplemental service s at an amount computed by SHERIFF, based on the current year's COUNTY law enforcement cost study. The cost of these supplemental services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. SHERIFF shall bill CITY immediately after each such event. 4. Notwithstanding the foregoing, CITY, through its permit process, may utilize the services of SHERIFF at events, for which CITY issues permits, that are operated by private individuals or entities or public entit ies. SHERIFF shall determine personnel and equipment needed for said events. If said events are in addition to the level of services listed in Attachment C of this Agreement, CITY shall reimburse COUNTY for such additional services at an amount computed by SHERIFF, based upon the current year’s COUNTY law enforcement cost study. The cost of these services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G -2 of this Agreement. SHERIFF shall bill CITY immediately after said services are rendered. 5. In accordance with Government Code 51350, COUNTY has adopted Board Resolution 89-1160 which identifies Countywide services, including but not limited to helicopter response. SHERIFF through this contract provides enhanced helicopter response services. The cost of enhanced helicopter response services is included in the cost of services set forth in Attachment A and in the Maximum Obligation of CITY set forth in Subsection G-2. Page 9 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued) COUNTY shall not charge any additional amounts for enhanced helicopter services after the cost of services set forth in Attachment A and in the Maximum Obligation set forth in Subsection G -2 has been established in any fiscal year without written notification to the CITY. E. PATROL VIDEO SYSTEMS: 1. As part of the law enforcement services provided to CITY, COUNTY has provided, or will provide patrol video systems (hereinafter called “PVS”) that will be mounted in the patrol vehicles designated by COUNTY f or use within CITY service area. 2. SHERIFF has the exclusive right to use said PVS for law enforcement services related to this Agreement. 3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and installation of Patrol Video Systems that are or will be mounted in patrol vehicles assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such PVS when they become functionally or technologically obsolete. The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of PVS, are included in the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs. CITY shall not be charged additional amounts for maintenance or replacement/upgrade of said PVS during the period July 1, 20 20 through June 30, 2021. 4. If, following the initial acquisition of PVS referenced above, CITY requires PVS for additional patrol cars designated for use in the CITY service area, COUNTY will purchase said additional PVS. Upon demand by COUNTY, CITY will pay to COUNTY a) the full costs of acquisition and installation of Page 10 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 E. PATROL VIDEO SYSTEMS: (Continued) said additional PVS, and b) the full recurring costs for said PVS, as deemed necessary by COUNTY, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such PVS when they become functionally or technologically obsolete. Said costs related to additional PVS are not included in, and are in addition to, the costs set forth in Attachment A and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. 5. County will replace and/or upgrade PVS as needed. The costs of replacing/upgrade PVS shall be paid by COUNTY from the replacement/upgrade funds to be paid by CITY in accordance with the foregoing. CITY shall not be charged any additional charge to replace or upgrade PVS after the cost of PVS set forth in Attachment C and in Maximum Obligation set forth in G-2 has been established in any fiscal year without written notification to the CITY. F. LICENSING SERVICES BY CITY: Upon receipt from SHERIFF of investigations of applications for licenses referred to in Subsection C-8 of this Agreement, CITY Manager shall determine whether to grant or deny the licenses and will issue the licenses or notify the applicants of denial. CITY shall provide all attorney services related to the granting, denial, revocation and administration of said licenses and the enforcement of CITY ordinances pertaining to said licenses. G. PAYMENT: 1. Pursuant to Government Code Section 51350, CITY agrees to pay to COUNTY the full costs of performing the services mutually agreed upon in this Agreement. The cost of services includes salaries, wages, benefits, mileage, services, supplies, equipment, and divisional, departmental and COUNTY General overhead. Page 11 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 G. PAYMENT: (Continued) 2. Unless the level of service as set forth in Attachment C, is increased or decreased by mutual agreement of the parties, or CITY is required to pay for increases as set forth in Subsection G-3, the Maximum Obligation of CITY for services set forth in Attachment C of this Agreement, other than Licensing Services, to be provided by the COUNTY for the period July 1, 2020 through June 30, 2021 shall be $10,816,378, as set forth in Attachment A. The overtime costs included in the Agreement are only an estimate. COUNTY shall notify CITY of actual overtime worked during each fiscal year. If actual overtime worked is above or below budgeted amounts, billings will be adjusted accordingly at the end of the fiscal year. Actual overtime costs may exceed CITY’s Maximum Obligation. 3a. At the time this Agreement is executed, there may be unresolved issues pertaining to potential changes in salaries and benefits for COUNTY employees. The costs of such potential changes are not included in the FY 2020-21 cost set forth in Attachment C nor in the FY 2020-21 Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. If the changes result in the COUNTY incurring or becoming obligated to pay for increased cost for or on account of personnel whose costs are included in the calculations of costs charged to CITY hereunder, CITY shall pay COUNTY, in addition to the Maximum Obligation set forth in Subsection G -2 of this Agreement, the full costs of said increases to the extent such increases to the extent such increases are attributable to work performed by such personnel during the period July 1, 2020 through June 30, 2021, and CITY’s Maximum Obligation hereunder shall be deemed to have increased accordingly. CITY shall pay COUNTY in full for such increases on a pro - rata basis over the portion of the period between July 1, 2020 and June 30, 2021 remaining after COUNTY notifies CITY that increases are payable. Page 12 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 G. PAYMENT: (Continued) If the changes result in the COUNTY incurring or becoming obligated to pay for decreased costs for or on account of personnel whose costs are included in the calculations of costs charged to CITY hereunder, COUNTY shall reduce the amount owed by the CITY to the extent such decreases are attributable to work performed by such personnel during the period July 1, 2020 through June 30, 2021, and CITY’s Maximum Obligation hereunder shall be deemed to have decreased accordingly. COUNTY shall reduce required payment by CITY in full for such decreases on a pro -rata basis over the portion of the period between July 1, 20 20 and June 30, 2021 remaining after COUNTY notifies CITY that the Maximum Obligation has decreased. 3b. If CITY is required to pay for increases as set forth in Subsection G-3a above, COUNTY, at the request of CITY, will thereafter reduce the level of service to be provided to CITY as set forth in Attachment C of this Agreement to a level that will make the Maximum Obligation of CITY hereunder for the period July 1, 2020 through June 30, 2021 an amount specified by CITY that is equivalent to or higher than the Maxi mum Obligation set forth in Subsection G-2 for said period at the time this Agreement originally was executed. The purpose of such adjustment of service levels will be to give CITY the option of keeping its Maximum Obligation hereunder at the pre-increase level or at any other higher or lower level specified by CITY. In the event of such reduction in level of service and adjustment of costs, the parties shall execute an amendment to this Agreement so providing. Decisions about how to reduce the level of service provided to CITY shall be made by SHERIFF with the approval of CITY. // Page 13 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 G. PAYMENT: (Continued) 4. The Maximum Obligation of CITY for services provided for the 12 -month periods commencing July 1, 2021, 2022, 2023 and 2024, will be determined annually by COUNTY and approved by CITY. 5. COUNTY shall invoice CITY monthly, one-twelfth (1/12) of the Maximum Obligation of CITY. If a determination is made that increases described in Subsection G-2 must be paid, COUNTY thereafter shall include the pro -rata charges for such increases in its monthly invoices to CITY for the balance of the period between July 1, 20 20 and June 30, 2021. 6. CITY shall pay COUNTY in accordance with COUNTY Board of Supervisors’ approved County Billing Policy, which is attached hereto as Attachment D, and incorporated herein by this reference. 7. COUNTY shall charge CITY late payment penalties in accordance with County Billing Policy. 8. As payment for the Licensing Services described in Subsection C -8 of this Agreement, COUNTY shall retain all fees paid by applicants for licenses, pursuant to CITY ordinances listed in Attachment B hereto. Retention of said fees by COUNTY shall constitute payment in full to COUNTY for costs incurred by COUNTY in performing the functions related to licensing described in Subsection C-8; provided, however, that if any of said fees are waived or reduced by CITY, CITY shall pay to COUNTY the difference between the amount of fees retained by COUNTY and the fees that were set forth in the ordinances listed in Attachment B as of July 1, 2020. Should CITY increase the fee schedule for the licensing ordinances set forth in Attachment B, either party shall have the right to seek amendment of this Agreement with respect to the division of the increased fees between CITY and COUNTY. // Page 14 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 G. PAYMENT: (Continued) 9. Fees generated or collected by SHERIFF contract personnel for copying of documents related to the services provided in this Agreement will be at COUNTY-established rates and will be credited to CITY on an annual basis. 10. Narcotic asset forfeitures will be handled pursuant to Attachment E hereto, which is incorporated herein by this reference. H. NOTICES: 1. Except for the notices provided for in Subsection 2 of this Section, all notices authorized or required by this Agreemen t shall be effective when written and deposited in the United States mail, first class postage prepaid and addressed as follows: CITY: ATTN: CITY MANAGER 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 COUNTY: ATTN: CONTRACT MANAGER SHERIFF-CORONER DEPARTMENT 320 NORTH FLOWER STREET, SUITE 108 SANTA ANA, CA 92703 2. Termination notices shall be effective when written and deposited in the United States mail, certified, return receipt requested and addressed as above. I. STATUS OF COUNTY: COUNTY is, and shall at all times be deemed to be, an independent contractor. Nothing herein contained shall be construed as creating the relationship of employer and employee, or principal and agent, between CITY and COUNTY or any of COUNTY’s agents or employees. COUNTY and its SHERIFF shall retain all authority for rendition of services, standards of performance, control of personnel, and other matters incident to the performance of services by Page 15 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 I. STATUS OF COUNTY: (Continued) COUNTY pursuant to this Agreement. COUNTY, its agents and employees, shall not be entitled to any rights or privileges of CITY employees and shall not be considered in any manner to be CITY employees. J. STATE AUDIT: Pursuant to Government Code Section 8546.7, CITY and COUNTY shall be subject to examination and audit by the State Auditor for a period of three (3) years after final payment by CITY to COUNTY under this Agreement. CITY and COUNTY shall retain all records relating to the performance of this Agreement for said three-year period, except that records pertaining to any audit then in progress, or any claim or litigation shall be retained beyond said three-year period until final resolution of said audit, claim or litigation. K. ALTERATION OF TERMS: This Agreement fully expresses all understanding of CITY and COUNTY with respect to the subject matter of this Agreement, and shall constitute the total Agreement between the parties for these purposes. No addition to, or alteration of, the terms of this Agreement shall be valid unless made in writing, formally approved and executed by duly authorized agents of both parties. L. INDEMNIFICATION: 1. COUNTY, its officers, agents, employees, subcontractors and independent contractors shall not be deemed to have assumed any liability f or the negligence or any other act or omission of CITY or any of its officers, agents, employees, subcontractors or independent contractors, or for any dangerous or defective condition of any public street or work or property of CITY, or for any illegality or unconstitutionality of CITY’s municipal ordinances. CITY shall indemnify and hold harmless COUNTY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors from any claim, demand or liability what soever based or asserted Page 16 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 L. INDEMNIFICATION: (Continued) upon the condition of any public street or work property of CITY, or upon the illegality or unconstitutionality of any municipal ordinance of CITY that SHERIFF has enforced, or upon any act or omiss ion of CITY, or its elected and appointed officials, officers, agents, employees, subcontractors or independent contractors related to this Agreement, including, but not limited to, any act or omission related to the maintenance or condition of any vehicle or motorcycle that is owned or possessed by CITY and used by COUNTY personnel in the performance of this Agreement, for property damage, bodily injury or death or any other element of damage of any kind or nature, and CITY shall defend, at its expense including attorney fees, and with counsel approved in writing by COUNTY, COUNTY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors in any legal action or claim of any kind based or asserted upon such condition of public street or work or property, or illegality or unconstitutionality of a municipal ordinance, or alleged acts or omissions. If judgment is entered against CITY and COUNTY by a court of competent jurisdiction because of the concurrent a ctive negligence of either party, CITY and COUNTY agree that liability will be apportioned as determined by the court. Neither party shall request a jury apportionment. 2. COUNTY shall indemnify and hold harmless CITY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors from any claim, demand or liability whatsoever based or asserted upon any act or omission of COUNTY or its elected and appointed officials, officers, agents, employees, subcontractors or independent contractors related to this Agreement, for property damage, bodily injury or death or any other element of damage of any kind or nature, and COUNTY shall defend, at its expense, including attorney fees, and with Page 17 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 L. INDEMNIFICATION: (Continued) counsel approved in writing by CITY, CITY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors in any legal action or claim of any kind based or asserted upon such alleged acts or omissions. M. TRAFFIC VIOLATOR APPREHENSION PROGRAM: 1. COUNTY has established a Traffic Violator Apprehension Program [“the Program”], which is operated by SHERIFF, and is designed to reduce vehicle accidents caused by unlicensed drivers and drivers whose licenses are suspended and to educate the public about the requirements of the Vehicle Code and related safety issues with regard to driver licensing, vehicle registration, vehicle operation, and vehicle parking. The Program operates throughout the unincorporated area s of the COUNTY and in the cities that contract with COUNTY for SHERIFF’s law enforcement services, without regard to jurisdictional boundaries, because an area -wide approach to reduction of traffic accidents and driver education is most effective in preventing traffic accidents. In order for CITY to participate in the Program, CITY has adopted a fee pursuant to Vehicle Code section 22850.5, in the amount and under the terms and conditions set forth in the TVAP resolution that is attached to this Agreement as Attachment F and incorporated into this Agreement by reference, and has directed that the revenue from such fee be used for the Program. CITY’s participation in the Program may be terminated at any time by rescission or amendment of the TVAP resolutio n that is attached to this Agreement as Attachment F. In the event CITY 1) amends said TVAP resolution, or rescinds said TVAP resolution and adopts a new TVAP resolution pertaining to the above -referenced fee and the Program, and 2) remains a participant in the Program thereafter, CITY’s Manager, on behalf of CITY, and SHERIFF, on behalf of COUNTY, have Page 18 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 M. TRAFFIC VIOLATOR APPREHENSION PROGRAM: (Continued) authority to execute an amendment to this Agreement to substitute CITY’s amended or new TVAP resolution for Attachment F to the Agreement, as long as said amendment to this Agreement does not materially change any other provision of this Agreement. 2. COUNTY will make available for review, at the request of CITY, all financial data related to the Program as may be requested by CITY. 3. Fee revenue generated by COUNTY and participating cities will be used to fund the following positions, which will be assigned to the Program:  Ten one hundredths of one (0.10) Sergeant (8 hours per two-week pay period)  One (1) Staff Specialist (80 hours per two-week pay period)  One (1) Office Specialist (80 hours per two-week pay period) 4. Fee revenue generated by CITY may be used to reimburse CITY for expenditures for equipment and/or supplies directly in support of the Program. In order for an expenditure for equipment and/or supplies to be eligible for reimbursement, CITY shall submit a request for and obtain pre - approval of the expenditure by using the form as shown in Attachment G. The request shall be submitted within the budget schedule established by SHERIFF. SHERIFF shall approve the expenditure only if both of the following conditions are satisfied: 1) there are sufficient Program funds, attributable to revenue generated by CITY’s fee, to pay for the requested purchase, and 2) CITY will use the equipment and/or supplies, during their entire useful life, only for purposes authorized by its TVAP resolution in effect at the time of purchase. // Page 19 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 M. TRAFFIC VIOLATOR APPREHENSION PROGRAM: (Continued) In the event that CITY terminates its participation in the Program, CITY agrees that the equipment purchased by CITY and reimbursed by Program funds will continue to be used, during the remainder of its useful life, exclusively for the purposes authorized by CITY’s TVAP resolution in effect at the time of purchase. In the event the fees adopted by COUNTY, CITY and other participating jurisdictions are not adequate to continue operation of the Program at the level at which it operated previously, COUNTY, at the option of CITY, will reduce the level of Program service to be provided to CITY or will continue to provide the existing level of Program services. COUNTY will charge CITY the cost of any Program operations that exceed the revenue generated by fees. Such charges shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. The amount of any revenue shortfall charged to CITY will be determined, at the time the revenue shortfall is experienced, according to CITY’s share of Program service s rendered. In the event of a reduction in level of Program service, termination of Program service or adjustment of costs, the parties shall execute an amendment to the Agreement so providing. Decisions about how to reduce the level of Program service p rovided to CITY shall be made by SHERIFF with the approval of CITY. N. MOBILE DATA COMPUTERS: 1. As part of the law enforcement services to be provided to CITY, COUNTY has provided, or will provide, mobile data computers (hereinafter called “MDCs”) that are or will be mounted in patrol vehicles and motorcycles, designated by COUNTY for use within CITY limits. 2. SHERIFF has the exclusive right to use said MDCs for law enforcement services related to this Agreement. Page 20 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 N. MOBILE DATA COMPUTERS: (Continued) 3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and installation of MDCs that are or will be mounted in patrol vehicles and motorcycles assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such MDCs when they become functionally or technologically obsolete. The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of MDCs, are included in the cos ts set forth in Attachment A and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs. CITY shall not be charged additional amounts for maintenance or replacement/upgrade of said MDCs during the period July 1, 2020 through June 30, 2021. 4. If, following the initial acquisition of MDCs referenced above, CITY requires MDCs for additional patrol cars or motorcycles designated for use in the CITY, or for CITY’s Emergency Operations Center, COUNTY will purchase said additional MDCs. Upon demand by COUNTY, CITY will pay to COUNTY a) the full costs of acquisition and installation of said additional MDC’s, and b) the full recurring costs for said MDCs, as deemed necessary by COUNTY, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such MDCs when they become functionally or technologically obsolete. Said costs related to additional MDCs are not included in, and are in addition to, the costs set forth in Attachment A and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. // // Page 21 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 N. MOBILE DATA COMPUTERS: (Continued) 5. COUNTY will replace and/or upgrade MDCs as needed. The costs of replacing/upgrading MDCs shall be paid by COUNTY from the replacement/upgrade funds to be paid by CITY in accordance with the foregoing. CITY shall not be charged any additional charge to replace or upgrade MDCs. O. E-CITATION UNITS: 1. As part of the law enforcement services to be provided to CITY, COUNTY has provided, or will provide, E-Citation units designated by COUNTY for use within CITY limits. 2. SHERIFF has the exclusive right to use said E-Citation units for law enforcement services related to this Agreement. 3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition of E-Citation units that are assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such E -Citation units when they become functionally or technologically obsolete. The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of E-Citation units, are included in the costs set forth in Attachment A and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs. CITY shall not be charged additional amounts for maintenance or replacement/upgrade of said E-Citation units during the period July 1, 2020 through June 30, 2021. 4. If, following the initial acquisition of E-Citation units referenced above, CITY requires additional E-Citation units designated for use in CITY, COUNTY will purchase said additional E-Citation units. Upon demand by COUNTY, CITY will pay to COUNTY a) the full costs of acquisition of said additional Page 22 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 O. E-CITATION UNITS: (Continued) E-Citation units, and b) the full recurring costs for said E -Citation units, as deemed necessary by COUNTY, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such E-Citation units when they become functionally or technologically obsolete. Said costs related to additional E-Citation units are not included in, and are in addition to, the costs set forth in Attachment A and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. 5. COUNTY will replace and/or upgrade E-Citation units as needed. The costs of replacing/upgrading E-Citation units shall be paid by COUNTY from the replacement/upgrade funds to be paid by CITY in accordan ce with the foregoing. CITY shall not be charged any additional charge to replace or upgrade E-Citation units. // // // // // // // // // // // // // // // ATTACHMENT A LEVEL OF SERVICE PROVIDED BY SHERIFF: Title Detail Quantity Frequency MANAGEMENT: Lieutenant 1.00 SUPERVISION: Sergeant Patrol 4.00 each, 80 hrs./ per two wk. pay period Sergeant Administrative 1.00 80 hrs./ per two wk. pay period INVESTIGATION SERVICES: Investigator 2.00 each, 80 hrs./ per two wk. pay period PATROL AND TRAFFIC SERVICES*: Deputy Sheriff II -Patrol Patrol 15.00 each, 80 hrs./ per two wk. pay period Deputy Sheriff II -Motor Motorcycle 2.00 each, 80 hrs./ per two wk. pay period ADDITIONAL SERVICES*: Crime Prevention Specialist Crime Prevention 1.00 80 hrs./ per two wk. pay period Community Services Officer Parking Control 2.00 each, 80 hrs./ per two wk. pay period Deputy Sheriff II Community Support 1.00 80 hrs./ per two wk. pay period Deputy Sheriff II DET 1.00 80 hrs./ per two wk. pay period Cadet Extra Help 1,039 hours TOTAL 30.00 * Deployment to be determined by SHERIFF in cooperation with CITY Manager REGIONAL / SHARED STAFF: Title Regional Team Quantity % Allocation TRAFFIC: Sergeant Traffic 0.60 6.94% Deputy Sheriff II Traffic 4.00 6.94% Investigative Assistant Traffic 2.00 6.94% Office Specialist Traffic 1.00 6.94% AUTO THEFT: Sergeant Auto Theft 0.30 5.46% Investigator Auto Theft 2.00 5.46% Investigative Assistant Auto Theft 1.00 5.46% Office Specialist Auto Theft 1.00 5.46% DET: Sergeant DET 1.00 5.87% Investigator DET 1.00 5.87% SUBPOENA: Office Specialist Subpoena 1.00 6.75% COURTS: Investigative Assistant Courts 2.00 16.07% Office Specialist Courts 0.80 16.07% MOTORCYCLE (shared Supervision): Sergeant Motorcyle Supervision 1.00 7.14% TOTAL 18.70 "REGULAR SERVICES BY COUNTY" (Subsection C-4) CITY OF SAN JUAN CAPISTRANO ORANGE COUNTY SHERIFF-CORONER FY 2020-21 LAW ENFORCEMENT CONTRACT Page 1 of 1 05/11/20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 ATTACHMENT B CITY OF SAN JUAN CAPISTRANO ORDINANCE NO. 785 (5-24.01 MC) ORDINANCE NO. 417 (5-18.02 MC) ORDINANCE NO.869 ( 9-3.503 MC) LICENSING DANCE INSTRUCTOR (NUDE) DANCE STUDIO (NUDE) ESCORT ESCORT BUREAU FIGURE MODEL (NUDE) FIGURE MODEL STUDIO (NUDE) GUN DEALER INTERLOCUTRIX (NUDE) INTRODUCTORY SERVICE JUNK COLLECTOR JUNK DEALER MASSAGE PARLOR (Includes FBI Fees) MASSAGIST (Includes FBI Fees) PEDDLER POOL ROOM PUBLIC DANCE RAP SESSION (NUDE) SECONDHAND DEALER (Pawnbroker) TAXICAB STAND ATTACHMENT C COST OF SERVICES PROVIDED BY SHERIFF (Subsection G-2): Title Detail Quantity Cost of Service (each) Cost of Service Total MANAGEMENT: Lieutenant 1.00 411,853$ 411,853$ SUPERVISION: Sergeant Patrol 4.00 344,949$ 1,379,796$ Sergeant Administrative 1.00 344,949$ 344,949$ INVESTIGATION SERVICES: Investigator 2.00 338,270$ 676,540$ PATROL AND TRAFFIC SERVICES: Deputy Sheriff II -Patrol Patrol 15.00 284,298$ 4,264,470$ Deputy Sheriff II -Motor Motorcycle 2.00 289,384$ 578,768$ ADDITIONAL SERVICES: Crime Prevention Specialist 1.00 109,792$ 109,792$ Community Services Officer Parking Control 2.00 132,511$ 265,022$ Deputy Sheriff II Community Support 1.00 284,298$ 284,298$ Deputy Sheriff II DET 1.00 284,298$ 284,298$ Cadet Extra Help 30,786$ TOTAL POSITIONS 30.00 8,630,572$ REGIONAL / SHARED STAFF: Title Regional Team Quantity % Allocation Cost $ TRAFFIC: Sergeant Traffic 0.60 6.94%18,128$ Deputy Sheriff II Traffic 4.00 6.94%94,478$ Investigative Assistant Traffic 2.00 6.94%19,337$ Office Specialist Traffic 1.00 6.94%7,672$ AUTO THEFT: Sergeant Auto Theft 0.30 5.46%7,121$ Investigator Auto Theft 2.00 5.46%36,941$ Investigative Assistant Auto Theft 1.00 5.46%7,597$ Office Specialist Auto Theft 1.00 5.46%5,946$ DET: Sergeant DET 1.00 5.87%23,278$ Investigator DET 1.00 5.87%24,065$ SUBPOENA: Office Specialist Subpoena 1.00 6.75%6,720$ COURTS: Investigative Assistant Courts 2.00 16.07%44,009$ Office Specialist Courts 0.80 16.07%12,996$ MOTORCYCLE (shared Supervision): Sergeant Motorcyle Supervision 1.00 7.14%24,970$ TOTAL REGIONAL/SHARED 18.70 333,258$ OTHER CHARGES AND CREDITS (Subsection G-2): OTHER CHARGES: CREDITS: TOTAL OTHER CHARGES AND CREDITS 1,852,548$ TOTAL COST OF SERVICES (Subsection G-2)10,816,378$ ORANGE COUNTY SHERIFF-CORONER FY 2020-21 LAW ENFORCEMENT CONTRACT CITY OF SAN JUAN CAPISTRANO "PAYMENT" (Subsection G-2) Credits include: AB109 (2011 Public Safety Realingment); estimated vacancy credits; false alarm fees reimbursement for training and miscellaneous programs; and retirement rate discount for FY 2020-21. Other Charges include: Annual leave paydowns and apportionment of cost of leave balances paid at end of employment; premium pay for bilingual staff, on-call pay and education incentive pay; contract administration; data line charges; E-Citation recurring costs for three (3) units; Enhanced helicopter response services; facility lease; holiday pay; Integrated Law & Justice of Orange County fees; Mobile Data Computer (MDC) recurring cost for eighteen (18) units; overtime; patrol training cost allocation; Patrol Video System (PVS) recurring cost for eleven (11) units; services and supplies; and transportation charges. Page 1 of 1 Page 1 of 4 ATTACHMENT D COUNTY BILLING POLICY APPROVED BY BOARD MINUTE ORDER DATED OCTOBER 27, 1992 I. POLICY All County agencies/departments/districts (County) governed by the Board of Supervisors shall bill contracting entities for materials and/or services provided under contract in accordance with the following standardized billing and collection policy. Billing frequency is dependent on whether the contract is a fixed price or actual cost contract. Payment due date is designed to be both responsive to the County’s cash flow needs and reasonable enough as to not require special processing by the contracting entity. If payments are not received by the required due dates, a late payment fee shall be computed and billed to the contracting entity in accordance with the requirements of this procedure. Nothing herein shall affect the liability, including pre-judgment interest, of the contracting party for services or materials in as much as this is a policy to enact standard billing practices. II. DEFINITIONS A. Contract for the purposes of this policy - A contract is a formal written agreement, a purchase order from the contracting entity, or any other acceptable mutual understanding between the contracting parties. B. Received by the County - The phrase “received by the County”, as used in Section VI of this policy, refers to the date a payment is received by the County. It is defined as the date the payment is in the County’s possession. It is not the date the payment is posted or deposited by the County. III. FIXED PRICE CONTRACTS A. Fixed Price (One-Time/Non-Recurring Contracts) - Invoices that represent a billing for a one-time, non-recurring provision of materials and/or services shall be issued no later than five (5) working days after delivery by the County of the materials and/or services. Examples of such one-time, non-recurring provision of materials and/or services might be a city contracting with the Sheriff for security service at a parade or sporting event; or, a city purchasing a computer listing containing certain city-requested data. Payment due date shall be invoice date plus 30 days. B. Fixed Price (Ongoing/Recurring Contracts) - Invoices that represent a billing for an ongoing, recurring provision of materials and/or services shall be issued according to the following frequency: 1. Annual Billings that total $10,000 or less per 12-month period shall be billed via one (1) annual invoice. Annual invoices will be issued for each 12-month period of the contract, or portions thereof. Invoices shall be issued no later than five working days after the beginning of each 12-month period. Payment due date shall be invoice date plus 30 days. Page 2 of 4 2. Quarterly Billings that are greater than $10,000 but not more than $200,000 per 12- month period, shall be billed in quarterly installments. Quarterly invoices will be issued representing the contract amount for each 12-month period of the contract, or portions thereof, prorated into four (4) installments. Invoices shall be issued no later than 30 days after the beginning of each quarter. Payment due date shall be 60 days after the beginning of each calendar quarter. 3. Monthly Billings that are greater than $200,000 per 12-month period shall be billed in monthly installments. Monthly invoices will be issued representing the contract amount for each 12-month period of the contract, or portions thereof, prorated into 12 installments. Invoices shall be issued on or before the first day of each service month. Payment due date shall be 30 days after the beginning of each ser vice month. An example of a fixed price contract for ongoing, recurring provision of materials and/or services might be a city contracting with the Sheriff for law enforcement services. IV. ACTUAL COST CONTRACTS A. Actual Cost (One-Time/Non-Recurring Contracts) - Invoices that represent a billing for a one-time, non-recurring provision of materials and/or services shall be issued after delivery by the County of the materials and/or services and no later than 15 days after actual cost data is available. Payment due date shall be invoice date plus 30 days. B. Actual Cost (Ongoing/Recurring Contracts) - Invoices that represent a billing for an ongoing, recurring provision of materials and/or services shall be issued on a monthly basis and shall represent the cost of materials and/or services provided to the contracting entity during the previous calendar month. Such invoices shall be issued no later than 15 days after the close of the monthly billing period. If the County agency/department/district does not utilize a monthly billing cycle, the invoice shall be issued no later than 15 days after actual cost data is available. Payment due date shall be invoice date plus 30 days. Examples of actual cost contracts for the ongoing, recurring provision of materials and/or services might be a city contracting with the County for communications equipment repair or waste disposal at a County landfill. V. PAYMENT DUE DATES Notwithstanding the provisions of Sections II and III above, payment due date shall be at least invoice date plus 30 days. If the County is late in issuing an invoice, the contracting entity would always have at least invoice date plus 30 days to pay. If the County is early in issuing an invoice, the contracting entity would still have a payment due date of either 60 days after the beginning of the quarter (quarterly invoices) or 30 days after the beginning of the service month (monthly invoices). (EXAMPLES: An invoice for October service, dated and issued October 8 (late) would have a payment due date of November 7. An invoice for August service, dated and issued July 20 (early) would have a payment due date of August 30.) Page 3 of 4 VI. LATE CHARGES The late payment of any invoiced amount by a contracting entity will cause the County to incur costs not contemplated by the County/contracting entity agreement, the exact amount of such cost will be extremely difficult to ascertain. Such costs include, but are not limited to, costs such as administrative follow-up and processing of delinquent notices, increased accounting costs, etc. Late charges will be assessed in the following situations:  Over-the-counter payments will be assessed a late charge if any payment is not received by the County by the payment due date.  Payments transmitted to the County via the U.S. Mail that have the payer’s postage meter mark will be assessed a late charge if any payment is not received by the County by the payment due date plus one day.  Payments transmitted to the County via the U.S. Mail that have a U.S. Post Office postmark dated after the payment due date will be assessed a late charge. The late charge assessed in each of these situations shall be three-quarters of one percent (0.75%) of the payment due and unpaid plus $100.00 for late payments made within 30 days of the payment due date. An additional charge of three-quarters of one percent (0.75%) of said payment shall be added for each additional 30-day period that the payment remains unpaid. Late charges shall be added to the payment and invoiced to the contracting entity in accordance with this policy. VII. COLLECTIONS Any invoice remaining unpaid 90 days after the invoice date shall be referred to the Auditor- Controller for subsequent collection action, such as deduction from contracting entity moneys on deposit with the County Treasurer in accordance with Government Code Section 907 and any other applicable provision of law. Non-payment of invoices and applicable late charges will constitute a breach of contract for which the County retains all legal remedies including termination of the contract. VIII. DISCOUNT FOR EARLY PAYMENT Any payment received by the County from a contracting entity 20 days or more before the payment due date shall be entitled to a discount of one-quarter of one percent (0.25%). If the contracting entity takes a discount, and the payment is received by the County less than 20 days before the payment due date, County staff shall immediately notify the contracting entity by telephone that the discount should not have been taken and that the balance is due by the original payment due date. If the balance is not received by the County in accordance with the dates as specified in Section VII, applicable late charges shall be calculated on the balance due. Page 4 of 4 IX. DEFERRED REVENUE At fiscal year end, any portion of revenue invoiced (not necessarily received) during the fiscal year being closed out that represents charges or prepayment for materials and/or services for the upcoming fiscal year shall be reclassified from a revenue account to a deferred revenue account (liability). In the new fiscal year the deferred revenue shall be reclassified to a revenue account. (EXAMPLE: On June 1, 19X1, a city is invoiced $48,000 which represents charges for the 12-month period June 1, 19X1 to May 31, 19X2. The amount to be reclassified to deferred revenue would be $44,000, representing 11/12ths of the total amount. In July 19X1, the $44,000 would be reclassified to revenue.) Reclassification entries shall be made by Auditor-Controller Agency Accounting units, or for those agencies/departments/districts without such a unit, the agency/department/district shall notify the Auditor-Controller of the amounts to be reclassified. X. COST RECOVERY All County agencies/department/districts shall include all costs of providing contracted services in contract rates. Including all direct costs, allocated indirect costs such as departmental and County (CWCAP) overhead, and cost of capital financing. XI. EXISTING CONTRACTS Billing terms and provisions contained in existing contracting entity agreements (existing as of the date this policy is approved by the Board of Supervisors) shall remain in effect for the life of the contract. However, when these existing contracts are renegotiated, they shall contain the billing provisions as set forth in this policy. XII. DEVIATIONS FROM POLICY Deviations from this policy shall be approved by the Board of Supervisors. Proposed deviations by agencies/departments/districts shall be submitted to the CEO for concurrence in advance of filing an Agenda Item Transmittal (AIT) with the Clerk of the Board. The CEO, or his/her designee, shall advise the agency/department/district of approval or disapproval of the proposed deviations. If a County agency/department/district submits a contract to the Board of Supervisors for approval, and the billing provisions in the contract deviate from this policy, the agency/department/district shall specifically advise the Board of Supervisors in the AIT of the deviation, the reason for the deviation, and of the CEO’s recommendation relative thereto. Page 4 of 4 5/7/2020 Rev. ATTACHMENT E POLICY FOR DISTRIBUTION OF FORFEITED AND SEIZED ASSETS BACKGROUND The Orange County Sheriff’s Department provides contract law enforcement services to cities in Orange County. Because of the increased likelihood that contracted patrol or investigation personnel may become involved in significant narcotic seizures, which could affect law enforcement services provided by the Sheriff’s Department to contract cities, the following policy is in effect. CONTRACTED PATROL AND INVESTIGATION OFFICERS When assets (cash or property) are seized in CITY by contracted patrol or investigation personnel, and subsequently forfeited to COUNTY’s Sheriff Department, hereinafter referred to as “SHERIFF”, the forfeited assets shall be shared with CITY as set forth below, for the purpose of augmenting law enforcement services in CITY, subject to guidelines by the forfeiting agency of such sharing and use of forfeited assets. A portion of forfeited assets may be retained by SHERIFF, to pay for departmental expenses not recovered through law enforcement contracts. In such cases, pursuant to the forfeiting agency’s guidelines, SHERIFF shall apply to the forfeiting agency for the return of a share of assets. In his application, SHERIFF shall specify the percentage of shared assets returned to SHERIFF that will be used to augment law enforcement services in CITY and the use of said assets by CITY. In those cases in which assets are seized within CITY by personnel assigned to CITY pursuant to this Agreement, without the involvement of other law enforcement personnel, and in which the seizure is a result solely of activities self-initiated by SHERIFF personnel assigned to CITY or initiated by said personnel in response to calls for service within CITY, SHERIFF shall apply to have all of the assets used to augment CITY law enforcement services. In those cases in which SHERIFF personnel assigned to CITY pursuant to this Agreement play an ancillary role in a seizure or in which other law enforcement personnel are involved in a seizure, SHERIFF shall determine the percentage of the total forfeited assets for which he will apply to augment CITY’s law enforcement services. This determination will be based on the circumstances of the seizure, including the pro-rata involvement of all personnel, including those assigned to CITY. Each seizure will be evaluated on an individual and independent basis, and said evaluations will be available for review to CITY’s manager. Examples of those incidents which would be evaluated as set forth in this section include situations in which a contract patrol deputy provides uniformed backup at a SHERIFF’s Narcotic Bureau search warrant location or in which contract investigators participate in the service of a search warrant that was initiated by non-contract law enforcement personnel. Assets (cash or property) that are returned to SHERIFF by the forfeiting agency with the understanding that they will be used to augment CITY law enforcement services shall be used by CITY and SHERIFF only for such purposes. If the forfeiting agency attaches additional or more specific conditions to the use of said assets, CITY and SHERIFF shall also abide by those conditions. SHERIFF and CITY’s manager shall determine the specific use of said assets within the conditions imposed by the forfeiting agency. ,, ATTACHMENT F RESOLUTION NO. 00-7-18-4 ORANGE COUNTY SHERIFFS DEPARTMENT TRAFFIC VIOLATOR APPREHENSION PROGRAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO. CALIFORNIA, AUTHORIZING PARTICIPATION IN THE ORANGE COUNTY SHERIFFS DEPARTMENT TRAFFIC VIOLATOR APPREHENSION PROGRAM WHEREAS, the City of San Juan Capistrano contracts with the Orange County Sheriffs Department for law enforcement services; and, WHEREAS, as a contract City, San Juan Capistrano is eligible to participate in the County's new Traffic Violator Apprehension Program: and, WHEREAS, the goals of the Traffic Violator Apprehension Program are to reduce the number of collisions involving suspended or unlicensed drivers, to reduce the number of hit and run collisions, to establish a public education program to deter violators, and to establish a cost recovery system to pay for continued enforcement; and, · WHEREAS, the Traffic Violator Apprehension Program is funded by a Traffic Safety Grant from the state of California and on-going revenues will be generated from the collection of vehicle impound fees within the unincorporated areas of the County and participating cities that contract for law enforcement services with the Orange County Sheriffs Department; and, WHEREAS, the County Board of Supervisors has established a fee of $50 for each vehicle towed/stored/impounded as a result of negligent operation of a vehicle and a $152 fee for each vehicle impounded for 30 days; based on the actual administrative costs for the identification and apprehension of drivers with suspended or revoked licenses or unlicensed motorists; and, WHEREAS, all of the impound fees will be collected by the County and deposited into a Traffic Violator Apprehension Fund for use by this program exclusively. NOW, THEREFORE,BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby resolve, determine and order as follows: SECTION 1.Authorize the City of San Juan Capjstrano to participate in the Traffic Violator Apprehension Fund; and, -1- ·-- SECTION 2. The City Clerk shall certify to the adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 18th day of July, 2000. ATTEST: STATE OF CALIFORNIA ) COUNTY OF ORANGE )ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing Is a true and correct copy of Resolution No. 00-7-18-4, adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 18thday of July, 2000, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Council Members Bathgate, Greiner, llart, Swerdlin and Mayor T Campbell None None None (SEAL) -2- OlLEAWeeM: AYOR OCSD BUDGET USE ONLY R E Q U E S T CERTIFICATION A P P R O V A L S ORANGE COUNTY SHERIFF-CORONER TRAFFIC VIOLATOR APPREHENSION PROGRAM CONTRACT CITY Participating City Request to Purchase From the TVA in FY Date APPLICABILTY QUANTITY ITEM DESCRIPTION TO TVA PROGRAM ESTIMATED COST THE CITY CERTIFIES THAT THE EQUIPMENT PURCHASED BY CITY AND TO BE REIMBURSED BY PROGRAM FUNDS WILL BE USED FOR ITS ENTIRE USEFUL LIFE EXCLUSIVELY FOR THE PURPOSES OF THE TRAFFIC VIOLATOR APPREHENSION PROGRAM CITY MANAGER REQUEST: Printed Name Signature: DATE Recommended For Approval CITY POLICE SERVICES CHIEF MANAGER – TVA PROGRAM ORANGE COUNTY SHERIFF-CORONER DEPARTMENT ATTACHMENT G Page 1 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE COUNTY OF ORANGE THIS FIRST AMENDMENT TO AGREEMENT, entered into this First day of May 2021, which date is enumerated for purposes of reference only, by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as “CITY” and the COUNTY OF ORANGE, a political subdivision of the State of California, hereinafter referred to as “COUNTY”, to amend effective July 1, 2021, that certain Agreement between the parties commencing July 1, 2020, hereinafter referred to as the “Agreement”. 1. For the period July 1, 2021 through June 30, 2022, REGULAR SERVICES BY COUNTY, Subsections C-4 and C-10 of the Agreement are amended to read as follows: “C-4. The level of service, other than for licensing, to be provided by the COUNTY for the period July 1, 2021 through June 30, 2022, is set forth in Attachment A and incorporated herein by this reference. C-10. With the limitations set forth below, SHERIFF, on behalf of COUNTY, and CITY Manager, on behalf of CITY, are authorized to execute written amendments to this Agreement to increase or decrease the level of service set forth in Attachment A, when SHERIFF and CITY Manager mutually agree that such increase or decrease in the level of service is appropriate. Any such amendment to the Agreement shall concomitantly increase or decrease the cost of services payable by CITY set forth in Attachment C and incorporated herein by this reference, and the Maximum Obligation of CITY set forth in Subsection G-2, in accordance with the current year’s COUNTY ATTACHMENT 9 - Page 1 of 12 Page 2 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 law enforcement cost study. SHERIFF and CITY Manager shall file copies of any such amendments to this Agreement with the Clerk of COUNTY’s Board of Supervisors and CITY’s Clerk. Amendments to this Agreemen t executed by SHERIFF and CITY Manager may not, in the aggregate, increase or decrease the cost of services payable by CITY by more than one percent (1%) of the total cost originally set forth in Attachment C and the Maximum Obligation originally set forth in Subsection G-2 for FY 2021-22. Prior approval by COUNTY’s Board of Supervisors and CITY’s Council is required before execution of any amendment that brings the aggregate total of changes in costs payable by CITY to more than one percent (1%) of the total cost originally set forth in Attachment C and the Maximum Obligation originally set forth in Subsection G-2 for FY 2021-22.” 2. Effective July 1, 2021, REGULAR SERVICES BY COUNTY, Subsection C -7 of the Agreement is amended to read as follows: “C-7. During emergencies, such as a mutual aid situation, SHERIFF will attempt to leave in CITY the Captain in charge of CITY Police Services. If SHERIFF determines that the Captain is needed elsewhere, SHERIFF will notify CITY’s Manager within four (4) hours. SHERIFF will return the Captain to CITY as soon as possible once the emergency situation is under control.” 3. Effective July 1, 2021, Attachment B (Licensing) to the Agreement is amended to include the City’s current Licensing Ordinances. Attachment B, as amended and attached hereto, is incorporated in the Agreement by this reference. 4. For the period July 1, 2021 through June 30, 2022, PATROL VIDEO SYSTEMS, Subsection E-3 of the Agreement is amended to read as follows: “E-3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and installation of Patrol Video Systems that are or will be mounted in patrol vehicles assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for ATTACHMENT 9 - Page 2 of 12 Page 3 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 replacement and upgrade of such PVS when they become functionally or technologically obsolete. The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of PVS, are included in the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs. CITY shall not be charged additional amounts for maintenance or replacement/upgrade of said PVS during the period July 1, 20 21 through June 30, 2022.” 5. For the period July 1, 2021 through June 30, 2022, PAYMENT, Subsection s G-2, G-3, G-5 and G-8, of the Agreement are amended to read as follows: “G-2. Unless the level of service as set forth in Attachment C, is increased or decreased by mutual agreement of the parties, or CITY is required to pay for increases as set forth in Subsection G-3, the Maximum Obligation of CITY for services set forth in Attachment C of this Agreement, other than Licensing Services, to be provided by the COUNTY for th e period July 1, 2021 through June 30, 2022 shall be $11,292,313, as set forth in Attachment A. The overtime costs included in the Agreement are only an estimate. COUNTY shall notify CITY of actual overtime worked during each fiscal year. If actual overtime worked is above or below budgeted amounts, billings will be adjusted accordingly at the end of the fiscal year. Actual overtime costs may exceed CITY’s Maximum Obligation. G-3a. At the time this Agreement is executed, there may be unresolved issues pertaining to potential changes in salaries and benefits for COUNTY employees. The costs of such potential changes are not included in the FY 2021-22 cost set forth in Attachment C nor in the FY 2021-22 Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. If the changes result in the COUNTY incurring or becoming obligated to pay for increased cost for or on account of personnel whose costs are included in ATTACHMENT 9 - Page 3 of 12 Page 4 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 the calculations of costs charged to CITY hereunder, CITY shall pay COUNTY, in addition to the Maximum Obligation set forth in Subsection G -2 of this Agreement, the full costs of said increases to the extent such increases to the extent such increases are attributable to work performed by such personnel during the period July 1, 2021 through June 30, 2022, and CITY’s Maximum Obligation hereunder shall be deemed to have increased accordingly. CITY shall pay COUNTY in full for such increases on a pro - rata basis over the portion of the period between July 1, 2021 and June 30, 2022 remaining after COUNTY notifies CITY that increases are payable. If the changes result in the COUNTY incurring or becoming obligated to pay for decreased costs for or on account of personnel whose costs are included in the calculations of costs charged to CITY hereunder, COUNTY shall reduce the amount owed by the CITY to the extent such decreases are attributable to work performed by such personnel during the period July 1, 2021 through June 30, 2022, and CITY’s Maximum Obligation hereunder shall be deemed to have decreased accordingly. COUNTY shall reduce required payment by CITY in full for such decreases on a pro -rata basis over the portion of the period between July 1, 20 21 and June 30, 2022 remaining after COUNTY notifies CITY that the Maximum Obligation has decreased. G-3b. If CITY is required to pay for increases as set forth in Subsection G-3a above, COUNTY, at the request of CITY, will thereafter reduce the level of service to be provided to CITY as set forth in Attachment C of this Agreement to a level that will make the Maximum Obligation of CITY hereunder for the period July 1, 2021 through June 30, 2022 an amount specified by CITY that is equivalent to or higher than the Maximum Obligation set forth in Subsection G-2 for said period at the time this ATTACHMENT 9 - Page 4 of 12 Page 5 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Agreement originally was executed. The purpose of such adjustment of service levels will be to give CITY the option of keeping its Maximum Obligation hereunder at the pre-increase level or at any other higher or lower level specified by CITY. In the event of such reduction in level of service and adjustment of costs, the parties shall execute an amendment to this Agreement so providing. Decisions about how to reduce the level of service provided to CITY shall be made by SHERIFF with the approval of CITY. G-5. COUNTY shall invoice CITY monthly, one-twelfth (1/12) of the Maximum Obligation of CITY. If a determination is made that increases described in Subsection G-2 must be paid, COUNTY thereafter shall include the pro-rata charges for such increases in its monthly invoices to CITY for the balance of the period between July 1, 20 21 and June 30, 2022. G-8. As payment for the Licensing Services described in Subsection C -8 of this Agreement, COUNTY shall retain all fees paid by applicants to the County for licenses, pursuant to CITY ordinances listed in Attachment B hereto. Retention of said fees by COUNTY shall constitute payment in full to COUNTY for costs incurred by COUNTY in performing the functions related to licensing described in Subsection C-8; provided, however, that if any of said fees are waived or reduced by CITY, CITY shall pay to COUNTY the difference between the amount of fees retained by COUNTY and the fees that were set forth in the ordinances listed in Attachment B as of July 1, 2021. Should CITY increase the fee schedule for the licensing ordinances set forth in Attachment B, either party shall have the right to seek amendment of this Agreement with respect to the division of the increased fees between CITY and COUNTY.” 6. Effective July 1, 2021, TRAFFIC VIOLATOR APPREHENSION PROGRAM, Subsection M-1 of the Agreement is amended to read as follows: ATTACHMENT 9 - Page 5 of 12 Page 6 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 “M-1. COUNTY has established a Traffic Violator Apprehension Program [“the Program”], which is operated by SHERIFF, and is designed to reduce vehicle accidents caused by unlicensed drivers and drivers whose licenses are suspended and to educate the public about the requirements of the Vehicle Code and related safety issues with regard to driver licensin g, vehicle registration, vehicle operation, and vehicle parking. The Program operates throughout the unincorporated areas of the COUNTY and in the cities that contract with COUNTY for SHERIFF’s law enforcement services, without regard to jurisdictional boundaries, because an area-wide approach to reduction of traffic accidents and driver education is most effective in preventing traffic accidents. In order for CITY to participate in the Program, CITY has adopted fees pursuant to Vehicle Code section 22850.5, in the same amount as approved by COUNTY, as set forth in the TVAP resolution that is attached to this Agreement as Attachment F and incorporated into this Agreement by reference, and has directed that the revenue from such fee be used for the Program. CITY’s participation in the Program may be terminated at any time by rescission or amendment of the TVAP resolution that is attached to this Agreement as Attachment F. In the event CITY 1) amends said TVAP resolution, or rescinds said TVAP resolution an d adopts a new TVAP resolution pertaining to the above-referenced fees and the Program, and 2) remains a participant in the Program thereafter, CITY’s Manager, on behalf of CITY, and SHERIFF, on behalf of COUNTY, have authority to execute an amendment to this Agreement to substitute CITY’s amended or new TVAP resolution for Attachment F to the Agreement, as long as said amendment to this Agreement does not materially change any other provision of this Agreement. As COUNTY updates its fees for the Program periodically, COUNTY will provide written notice to CITY of the ATTACHMENT 9 - Page 6 of 12 Page 7 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 updated fees. CITY’s participation in the Program will terminate if CITY determines not to adopt the updated fees for the Program.” 7. For the period July 1, 2021 through June 30, 2022, MOBILE DA TA COMPUTERS, Subsection N-3, of the Agreement is amended to read as follows: “N-3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and installation of MDCs that are or will be mounted in patrol vehicles and motorcycles assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such MDCs when they become functionally or technologically obsolete. The costs to be paid by CITY for re curring costs, including maintenance and replacement/upgrade of MDCs, are included in the costs set forth in Attachment A and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs. CITY shall not be charged additional amounts for maintenance or replacement/upgrade of said MDCs during the period July 1, 20 21 through June 30, 2022.” 8. For the period July 1, 2021 through June 30, 2022, E -CITATION UNITS, Subsection O-3, of the Agreement are amended to read as follows: “O-3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition of E-Citation units that are assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such E -Citation units when they become functionally or technologically obsolete. The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of E-Citation units, are included in the costs set forth in Attachment A and the Maximum Obligation of CITY set forth in ATTACHMENT 9 - Page 7 of 12 Page 8 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Subsection G-2 of this Agreement unless CITY has already paid such costs. CITY shall not be charged additional amounts for maintenance or replacement/upgrade of said E-Citation units during the period July 1, 2021 through June 30, 2022.” 9. All other provisions of the Agreement, to the extent that they are not in conflict with this FIRST AMENDMENT TO AGREEMENT, remain unchanged. // // // // // // // // // // // // // // // // // // // // // // ATTACHMENT 9 - Page 8 of 12 ATTACHMENT 9 - Page 9 of 12 ATTACHMENT A LEVEL OF SERVICE PROVIDED BY SHERIFF: Title Detail Quantity Frequency MANAGEMENT: Captain 1.00 SUPERVISION: Sergeant Patrol 4.00 each, 80 hrs./ per two wk. pay period Sergeant Administrative 1.00 80 hrs./ per two wk. pay period INVESTIGATION SERVICES: Investigator 2.00 each, 80 hrs./ per two wk. pay period PATROL AND TRAFFIC SERVICES*: Deputy Sheriff II -Patrol Patrol 15.00 each, 80 hrs./ per two wk. pay period Deputy Sheriff II -Motor Motorcycle 2.00 each, 80 hrs./ per two wk. pay period ADDITIONAL SERVICES*: Crime Prevention Specialist Crime Prevention 1.00 80 hrs./ per two wk. pay period Community Services Officer Parking Control 2.00 each, 80 hrs./ per two wk. pay period Deputy Sheriff II Community Support 1.00 80 hrs./ per two wk. pay period Deputy Sheriff II DET 1.00 80 hrs./ per two wk. pay period Cadet Extra Help 1,039 hours TOTAL 30.00 * Deployment to be determined by SHERIFF in cooperation with CITY Manager REGIONAL / SHARED STAFF: Title Regional Team Quantity % Allocation TRAFFIC: Sergeant Traffic 0.60 5.83% Deputy Sheriff II Traffic 4.00 5.83% Investigative Assistant Traffic 2.00 5.83% Office Specialist Traffic 1.00 5.83% AUTO THEFT: Sergeant Auto Theft 0.30 4.40% Investigator Auto Theft 2.00 4.40% Investigative Assistant Auto Theft 1.00 4.40% Office Specialist Auto Theft 1.00 4.40% DET: Sergeant DET 1.00 8.08% Investigator DET 1.00 8.08% COURTS: Investigative Assistant Courts 2.00 18.78% MOTORCYCLE (shared Supervision): Sergeant Motorcyle Supervision 1.00 8.00% TOTAL 16.90 "REGULAR SERVICES BY COUNTY" (Subsection C-4) CITY OF SAN JUAN CAPISTRANO ORANGE COUNTY SHERIFF-CORONER FY 2021-22 LAW ENFORCEMENT CONTRACT Page 1 of 1 ATTACHMENT 9 - Page 10 of 12 05/14/21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 ATTACHMENT B CITY OF SAN JUAN CAPISTRANO ORDINANCE NO. 1055 (5-24.01 MC) ORDINANCE NO. 417 (5-18.02 MC) LICENSING JUNK COLLECTOR JUNK DEALER MASSAGE ESTABLISHMENTS SECONDHAND DEALER (Pawnbroker) ATTACHMENT 9 - Page 11 of 12 ATTACHMENT C COST OF SERVICES PROVIDED BY SHERIFF (Subsection G-2): Title Detail Quantity Cost of Service (each) Cost of Service Total MANAGEMENT: Captain 1.00 435,561$ 435,561$ SUPERVISION: Sergeant Patrol 4.00 364,762$ 1,459,048$ Sergeant Administrative 1.00 364,762$ 364,762$ INVESTIGATION SERVICES: Investigator 2.00 367,231$ 734,462$ PATROL AND TRAFFIC SERVICES: Deputy Sheriff II -Patrol Patrol 15.00 302,503$ 4,537,545$ Deputy Sheriff II -Motor Motorcycle 2.00 307,659$ 615,318$ ADDITIONAL SERVICES: Crime Prevention Specialist 1.00 116,002$ 116,002$ Community Services Officer Parking Control 2.00 138,984$ 277,968$ Deputy Sheriff II Community Support 1.00 302,503$ 302,503$ Deputy Sheriff II DET 1.00 302,503$ 302,503$ Cadet Extra Help 32,713$ TOTAL POSITIONS 30.00 9,178,385$ REGIONAL / SHARED STAFF: Title Regional Team Quantity % Allocation Cost $ TRAFFIC: Sergeant Traffic 0.60 5.83%17,325$ Deputy Sheriff II Traffic 4.00 5.83%84,537$ Investigative Assistant Traffic 2.00 5.83%17,606$ Office Specialist Traffic 1.00 5.83%6,684$ AUTO THEFT: Sergeant Auto Theft 0.30 4.40%6,522$ Investigator Auto Theft 2.00 4.40%30,284$ Investigative Assistant Auto Theft 1.00 4.40%6,577$ Office Specialist Auto Theft 1.00 4.40%4,987$ DET: Sergeant DET 1.00 8.08%34,909$ Investigator DET 1.00 8.08%31,926$ COURTS: Investigative Assistant Courts 2.00 18.78%56,158$ MOTORCYCLE (shared Supervision): Sergeant Motorcyle Supervision 1.00 8.00%30,979$ TOTAL REGIONAL/SHARED 16.90 328,494$ OTHER CHARGES AND CREDITS (Subsection G-2): OTHER CHARGES: CREDITS: TOTAL OTHER CHARGES AND CREDITS 1,785,434$ TOTAL COST OF SERVICES (Subsection G-2)11,292,313$ ORANGE COUNTY SHERIFF-CORONER FY 2021-22 LAW ENFORCEMENT CONTRACT CITY OF SAN JUAN CAPISTRANO "PAYMENT" (Subsection G-2) Credits include: AB109 (2011 Public Safety Realingment); estimated vacancy credits; false alarm fees reimbursement; reimbursement for training and miscellaneous programs; and retirement rate discount for FY 2021-22; reimbursement for restitution. Other Charges include: Annual leave paydowns and apportionment of cost of leave balances paid at end of employment; contract administration; data line charges; E-Citation recurring costs for two (2) units; Enhanced helicopter response services; facility lease; holiday pay; Integrated Law & Justice of Orange County fees; Mobile Data Computer (MDC) recurring cost for eighteen (18) units; overtime; patrol training cost allocation; Patrol Video System (PVS) recurring cost for eleven (11) units; premium pay for bilingual staff, education incentive pay, on-call pay; services and supplies; and transportation charges. Page 1 of 1 ATTACHMENT 9 - Page 12 of 12 MEMORANDUM OF UNDERSTANDING July 1, 2021 – June 30, 2024 BETWEEN CITY OF SAN JUAN CAPISTRANO AND SAN JUAN CAPISTRANO CLASSIFIED EMPLOYEES ASSOCIATION ATTACHMENT 10 - Page 1 of 31 2 Contents AGREEMENT……………………………………………………………………………………………………………………………………………1 RECOGNITION…………………………………………………………………………………………………………………………………………1 I. SALARY ...................................................................................................................................................... 1 II. OVERTIME ................................................................................................................................................ 2 III. OVERTIME WORK ON HOLIDAYS ............................................................................................................ 2 IV. BILINGUAL PAY ........................................................................................................................................ 2 V. UNIFORM/WORK BOOT ALLOWANCE ..................................................................................................... 3 VI. DEFERRED COMPENSATION PROGRAM ................................................................................................. 4 VII. RECOGNITION BONUS ............................................................................................................................ 5 VIII. PAYMENT FOR REQUIRED UTILITIES CERTIFICATES .............................................................................. 5 IX. MILEAGE REIMBURSEMENT .................................................................................................................... 6 X. RIDE SHARE PROGRAM ........................................................................................................................... 6 XI. TUITION REIMBURSEMENT PROGRAM ................................................................................................... 6 XII. SAFETY INCENTIVE PROGRAM ............................................................................................................... 7 XIII. WORK DAY AND WORK WEEK ............................................................................................................... 7 XIV. EMERGENCY STAND-BY/CALL OUT .................................................................................................... 7 XV. VACATION .............................................................................................................................................. 8 XVI. SICK LEAVE ......................................................................................................................................... 9 XVII. BEREAVEMENT LEAVE ........................................................................................................................ 11 XVIII. SCHOOL ACTIVITY LEAVE .................................................................................................................. 12 XIX. JURY DUTY LEAVE ................................................................................................................................ 12 XX. DONATION OF BLOOD LEAVE .............................................................................................................. 12 XXI. FAMILY CARE LEAVE (See the City’s Personnel Rules and Regulations) .......................................... 13 XXII. ON-THE-JOB INJURY LEAVE ............................................................................................................. 13 XXIII. HOLIDAYS ......................................................................................................................................... 13 XXIV. WORK ON A HOLIDAY ....................................................................................................................... 14 XXV. FLOATING HOLIDAY ......................................................................................................................... 15 XXVI. MEDICAL, DENTAL, VISION INSURANCE AND COBRA ...................................................................... 15 XXVII. IRS CODE SECTION 125 PLAN ........................................................................................................... 16 XXVIII. RETIREE HEALTH SAVINGS ACCOUNT .............................................................................................. 16 XXIX. LIFE INSURANCE ............................................................................................................................... 16 XXX. PRE-PAID LEGAL SERVICES ................................................................................................................ 17 ATTACHMENT 10 - Page 2 of 31 3 XXXI. COLLEGE SAVINGS PROGRAM (529 PLAN) ....................................................................................... 17 XXXII. RETIRING EMPLOYEE RECOGNITION PROGRAM ............................................................................. 17 XXXIII. RETIREMENT PLAN ........................................................................................................................ 17 XXXIV. SHORT/LONG-TERM DISABILITY INSURANCE ................................................................................. 18 XXXV. ACTING STATUS ............................................................................................................................... 18 XXXVI. RECLASSIFICATION OF POSITION ................................................................................................... 19 XXXVII. PROMOTIONS, TRANSFERS AND VOLUNTARY DEMOTIONS ........................................................ 19 XXXVIII. PROMOTIONAL EXAMINATIONS ................................................................................................... 21 XXXIL. REGULAR APPOINTMENT FOLLOWING PROBATIONARY PERIOD ................................................... 21 XL. TERMINATION - RESIGNATION ............................................................................................................. 21 XLI. LAYOFFS AND RE-EMPLOYMENT ........................................................................................................ 21 XLII. GRIEVANCE PROCEDURE .................................................................................................................... 24 XLIII. FAIR EMPLOYMENT PRACTICES ....................................................................................................... 246 XLIV. NON-DISCRIMINATION POLICY ....................................................................................................... 247 XLV. CONTINUATION OF BENEFITS .......................................................................................................... 247 XLVI. SEPARABILITY .................................................................................................................................. 247 XLVII. PERSONNEL RULES ......................................................................................................................... 247 XLVIII. TELEWORKING POLICY .................................................................................................................. 247 ATTACHMENT 10 - Page 3 of 31 1 AGREEMENT This agreement is entered into by the parties on behalf of the City of San Juan Capistrano (hereinafter known as "the City") and the San Juan Capistrano City Employees Association (hereinafter known as "the Association"), in accordance with the provisions of Section 3500-3510 of the California Government Code, otherwise known as the Meyers-Milias-Brown Act, and the Employer-Employee Relations Resolution of the City of San Juan Capistrano for the period of time commencing July 1, 2021 through June 30, 2024. All provisions of this agreement are effective upon adoption of this agreement by the City Council unless otherwise specified. RECOGNITION The City recognizes the Classified Association as the "recognized employee organization" for all employees within the unit of representation, consisting of regular full-time employees in the following classifications: Accountant Human Resources Assistant Accounting Clerk Maintenance Mechanic (Utilities) Accounting Specialist Office Assistant Administrative Coordinator Permit Technician Administrative Specialist Planning Technician Assistant Engineer Public Works Specialist I/II Assistant Planner Receptionist Associate Civil Engineer Senior Accounting Specialist Associate Engineer Senior Citizen Program Coordinator Associate Planner Senior Executive Assistant Building and Grading Inspector Senior Permit Technician Chief Plant Operator Senior Public Works Specialist Code Enforcement Officer Utilities Operator Trainee/I/II Community Services Coordinator Utilities Operator Trainee/I/II GWRP Construction Inspector Utilities Operator III Customer Service Representative Utilities Operator Ill GWRP Customer Service Supervisor Utility Programs Supervisor Engineering Assistant Utilities Superintendent Engineering Technician Public Works Supervisor Executive Assistant Water Conversation Coordinator Field Customer Service Representative Water and Sewer Construction Inspector GIS Specialist Housing Coordinator/Assistant Planner I. SALARY July 1, 2021 2% Wage Increase July 1, 2022 2% Wage Increase July 1, 2023 2.5%% Wage Increase ATTACHMENT 10 - Page 4 of 31 2 II. OVERTIME Whenever, at the discretion of the appointing authority, an employee works beyond forty (40) hours in a designated work period, such person shall be compensated for such overtime work to the nearest 15 minutes at time-and-one-half his/her regular compensation, or receive compensatory time off earned at time-and-one-half rate. Whenever, at the discretion of the appointing authority, an employee works beyond twelve (12) hours in one work day, such person shall be compensated for such overtime beyond the twelve hours to the nearest 15 minutes at double the rate of his/her regular compensation, or receive compensatory time off earned at double rate. Compensation for overtime shall be in the form of pay, unless the affected employee requests compensatory time. Management shall have the right to deny payment in the form of compensatory time. The employee may accumulate and hold for future use no more than 220 hours (230 hours beginning July 2018) at any one time of compensatory time, and at the end of the fiscal year, may carry over no more than 80 hours of compensatory time for use in the next fiscal year. Compensatory time may only be cashed out at the hourly-rate that was in place when the compensatory time was accrued. Prior to the implementation of any salary adjustment, all accumulated compensatory time must be taken as paid leave subject to the approval of the department head or paid out as compensation. All other overtime hours accumulated to that point shall be paid at the end of the fiscal year. Such compensatory time off is subject to approval of the Department Head. Employees may elect to cash-out compensatory time on a quarterly basis, in accordance with the schedule provided by the Finance Department. Overtime requested by an employee to adjust the employee's work schedule shall be considered flex time and is not subject to compensation at the rate of time-and-one- half. Overtime shall be assigned/offered to full-time, regular employees before being assigned/offered to part- time or temporary employees. Part-time or temporary employees may work overtime only if no full-time regular employee is available and/or interested in working the overtime. The City shall assign overtime with due regard to an equitable and fair distribution of work, whenever possible. III. OVERTIME WORK ON HOLIDAYS All hours worked on a holiday are paid at time and one-half. IV. BILINGUAL PAY Qualified employees who meet the following criteria shall receive a monthly stipend in recognition of their ability: 1. Employee must be assigned by the City Manager or his/her designee to speak and/or translate written material in a language in addition to English. This includes such specialized communication skills as sign language. ATTACHMENT 10 - Page 5 of 31 3 2. Employees must, as needed, speak and/or translate a second language. 3. Employees able to communicate and/or translate verbal information shall receive an additional $85 per month. Employees assigned to translate written information will be required to be certified as qualified by the City. 4. Employees able to translate verbal and written information shall receive an additional $125 per month (i.e., the employee receives $125 per month because of the additional ability to translate written information, rather than the $85 noted above that is provided to an employee who provides verbal translation only). Employees assigned to translate written information will be required to be certified as qualified by the City. The City, at its discretion, may reassign an employee from a bilingual assignment to a position which does not require a bilingual assignment. An employee in a bilingual assignment may request assignment to a position that does not require bilingual assignment. The request shall be made in writing to the City Manager, who will consider it according to the needs and availability of a qualified replacement. V. UNIFORM/WORK BOOT ALLOWANCE The City will provide uniform shirts, pants and work boots to all field positions in the unit of representation as follows: Pants - City will provide uniform pants, or provide an allowance of $360 for the purchase of uniforms pants. Employees must elect at the beginning of each year which option he/she will adopt for that fiscal year. Those electing the allowance will receive this amount as part of the last pay check received in July of each year. Shirts – The City will provide up to eleven (11) shirts for all Public Works and Utilities field personnel, and up to nine (9) shirts for all other personnel required to wear uniform shirts. City will provide a selection of uniform shirts that will be required to be worn by all field personnel in all departments. These shirts are to be worn by the following classifications: Utilities Operator I, II, and III, Utilities Superintendent, Chief Plan Operator, Maintenance Mechanic, Public Works Specialist I and II, Senior Public Works Specialist, Public Works Construction Inspector, Water and Sewer Construction Inspector, Building and Grading Inspector, and Code Enforcement Officers, or other positions as deemed necessary to provide identification and uniformity in the field. The City will bear the cost of acquiring these shirts annually. The City agrees to establish a committee, including three (3) bargaining unit members, for input into the decisions regarding Administrative Policy 227, Dress Code, Personal Appearance, and Uniform Policy. Work Boots - The City will provide a work boot reimbursement up to $160 per pair of work boots for all field positions, as defined in the preceding paragraph. Reimbursement shall be provided for up to two pairs of work boots per fiscal year. All field personnel, as defined in the “Shirts” paragraph noted above, will be required to wear uniforms during working hours. City Jackets – Up to two (2) jackets shall be provided to employees as needed, but no more than once per year. City Hats - Shall be provided to employees as needed. ATTACHMENT 10 - Page 6 of 31 4 VI. DEFERRED COMPENSATION PROGRAM City employees may elect to have a portion of their salary withheld. The deferred amount is tax-free until actually received and is invested in the meantime. As prescribed by applicable laws or plan provisions, funds may be withdrawn upon resignation, retirement or to a beneficiary upon death. The City shall establish a deferred compensation "matching fund" and match voluntary employee contributions up to $20 (twenty dollars) per month. Upon separation from the City, employees shall have the following contribution made to the 401(a) plan: Contribution to 401(a) Plan Upon Separation Years of Full-Time City of San Juan Capistrano Experience Sick Leave Longevity 0-5 (Total Sick Leave Hours-288) x 5% 6-10 (Total Sick Leave Hours-288) x 7.5% N/A 11-15 (Total Sick Leave Hours-288) x 10% More than 15 (Total Sick Leave Hours-288) x 12.5% 12.5% Upon separation from the City, employees shall have the following contribution made to the RHS plan: Contribution to RHS Plan Upon Separation Years of Full-Time City of San Juan Capistrano Experience Sick Leave Longevity 0-5 (Total Sick Leave Hours-288) x 5% 6-10 (Total Sick Leave Hours-288) x 7.5% N/A 11-15 (Total Sick Leave Hours-288) x 10% More than 15 (Total Sick Leave Hours-288) x 12.5% 12.5% The City will make the necessary revisions to the deferred compensation plan documents and any and all City policies to conform to the above contribution distribution schedule. As an illustration of how the contributions work upon separation, an employee who has 1000 hours of accrued and unused sick leave at the time of separation, has 15 years of full-time SJC experience, and is eligible for 50% payout of Sick Leave, will be compensated for 500 Total Sick Leave Hours (TSLH) (1000 x .5 = 500). Two-hundred-eighty-eight (288) hours will be deducted from the 500 TSLH (but cashed-out as part of the 477.6 hours noted below), for a total of 112 hours, and 10%, or the dollar value of 11.2 hours, will be contributed into the 401(a) plan, and an additional 10%, or the dollar value of another 11.2 hours, will be contributed into the RHS plan. The employee will receive in cash, subject to all applicable taxes and withholdings, the dollar value of 477.6 hours of Sick Leave (500 – 11.2 – 11.2 = 477.6). Employees whose TSLH do not amount to more than 288 hours shall receive cash, subject to all applicable taxes and withholdings, for all such hours. An employee eligible for the Longevity pay shall receive the remaining 75% in cash, subject to all applicable taxes and withholdings. ATTACHMENT 10 - Page 7 of 31 5 VII. RECOGNITION BONUS I. The City shall grant a $100 recognition bonus for certifications above and beyond requirements of position and used for the benefit of the City. The following list contains several certifications obtainable by City employees and of value to the City. To qualify for certification, the following parameters must be met: The Certification must be issued by a governing or sanctioning professional body such as America Water Works Association or the American Institute of Certified Planners. The certification must be obtained through a course of study either at an institution or through home- study and attaining the qualified skill level proven through testing by the sanctioning body. Certifications that are not on the list of approved certifications below must be approved by the City. The following list contains several certifications obtainable by City employees and of value to the City: i. Playground Safety Inspection Certificate ii. Certified Arborist iii. Pesticide Applicator and Advisor Certifications iv. American Institute of Certified Planners Certification v. International Conference of Building Officials (ICBO) certificates, to include: • Plans Examiner • Housing Inspector • Mechanical Inspector • Plumbing Inspector • Combination Dwelling Inspector • Electrical Inspector • Light Commercial Combination Inspector vi. American Association of Code Enforcement certificates, to include: • Certified Zoning Enforcement • Officer, Certified Housing Enforcement Officer • Certified Code Enforcement Administrator vii. Class "A" or “B” Driver License, including all costs associated with maintaining the license. Employees holding one of these Commercial Drivers Licenses shall receive the recognition bonus annually on the first pay-period in July of each year. VIII. PAYMENT FOR REQUIRED UTILITIES CERTIFICATES For the positions shown below, the City shall pay $300 annually for each certificate that is required as part of the position's job description. Certificates shall be issued by the California Department of Public Health (DPH) or the California Water Environment Association (CWEA). The City will also pay $300 annually for ATTACHMENT 10 - Page 8 of 31 6 up to one certificate above that which is required in an employee's job description. Additionally, the City shall reimburse test fees for certifications. This reimbursement is limited to the first and second attempt, if necessary. The City shall pay $300 annually for up to five (5) employees to hold a County of Orange Environmental Health Certified Backflow Tester certificate. Those employees holding these certificates effective July 1, 2009, will be included and additional employees will be added in chronological order based on the date of their certification by the County of Orange up to a total of five (5) employees. Additional employees receiving such certification when five (5) employees are already in place will be placed on a waiting list in chronological order based on their certification by the County of Orange. Employees who have been trained and received certification through the City will be required to maintain their certification until another individual is available to fill their place from the waiting list. Chief Plant Operator Construction Inspector Field Customer Service Representative Maintenance Mechanic Utilities Operator I Utilities Operator II Utilities Operator III Utilities Operator I Groundwater Recovery Plant Utilities Operator II Ground Water Recovery Plant Utilities Operator III Ground Water Recovery Plant Utilities Operator Trainee Utility Programs Supervisor Utilities Superintendent Water and Sewer Construction Inspector IX. MILEAGE REIMBURSEMENT City employees shall receive mileage reimbursement in accordance with IRS standards. X. RIDE SHARE PROGRAM Employees who carpool, walk, bike, take the bus or the train to and from work at least twice per week shall, at the end of the fiscal year, be eligible for nine (9) hours of additional floating holiday time in the next fiscal year. Employees may qualify for this incentive by participating 104 times in the fiscal year (i.e., an average of 2 times per week x 52 weeks = 104 occasions). XI. TUITION REIMBURSEMENT PROGRAM The City will provide an annual educational incentive equal to full time tuition at a California State University for a degree from an accredited college or university or certificate program, up to a maximum of $5000/fiscal year for an employee. There will be no limit on the cost of each degree. ATTACHMENT 10 - Page 9 of 31 7 The City will provide up to $20,000 annually for a City-wide tuition reimbursement program and carryover any remainder to the next fiscal year, up to a total pool amount of $35,000. If annual requests exceed the amount available, amounts would be pro-rated based on requests. Program details are identified in Administrative Policy No. 214, Employee Tuition Reimbursement Program. XII. SAFETY INCENTIVE PROGRAM The City's Safety Committee shall finish the work started on the IIPP. XIII. WORK DAY AND WORK WEEK The official work-period designation for most employees of the City of San Juan Capistrano shall be forty (40) hours from Friday at 11:30 a.m. to the following Friday at 11:30 a.m. The official workday shall be Monday through Thursday from 7:30 a.m. to 5:30 p.m. and Fridays from 7:30 a.m. to 4:30 p.m., with alternate schedules to meet Department operations or to meet special employees' needs due to transportation or caregiver issues. It shall be the duty of each Department Head to arrange the work of the department so that each employee therein shall work not more than five (5) consecutive days in each calendar week except that a Department Head, with approval of the City Manager or designee, may require any employee in the department to temporarily perform service in excess of the designated work day or workweek when public necessity or convenience so requires. Department Heads will not temporarily change an employee's regular work schedule to avoid payment of overtime. XIV. EMERGENCY STAND-BY/CALL OUT Employees who are in classifications that require the performance of stand-by duty as an essential function of their position, shall during "off hours" 1) monitor the duty phone and/or pager, 2) remain in the local area (no more than 20 miles from City Hall site), 3) remain fit for duty, and 4) respond to any and all call outs within 15 minutes. Employees shall be compensated at the rate of California's minimum wage for every hour or portion of an hour while on stand-by duty. Calls for service shall be reported and compensated at the overtime rate of pay pursuant to the Personnel Rules and Regulations. Calls for service requiring the employee to respond to the field shall be paid at a two hour minimum. Multiple calls received within any two hour period already being paid will not result in any additional compensation. Additionally, call outs that result in the two hour minimum period overlapping into the regular work schedule will revert to regular pay at the beginning of the regular work day. For each hour or portion thereof of work performed and compensated as overtime during "off hours", stand-by pay shall be reduced by the amount of overtime hours incurred. At the option of the Department Head, employees may either receive their stand-by compensation as compensatory time off or as compensation in the current pay period. Consideration shall be given to effectuating the wishes of employees. Employees with existing compensatory time balances of at least ATTACHMENT 10 - Page 10 of 31 8 two-hundred twenty (220) hours shall not be eligible to receive stand-by compensation as compensatory time. Employees not on stand-by status when called out to the field for an emergency shall be compensated at the overtime rate of pay pursuant to the Personnel Rules and Regulations with a three hour minimum. Additionally, employees not on stand-by status who have not physically worked their regular number of workday hours, shall, when called out on a bona-fide emergency, be paid at 1 1/2 times their regular pay for all bona fide emergency hours worked. Scheduled overtime does not constitute a bona-fide emergency. Bona-fide emergencies are those that occur due to a natural disaster such as fire, flood, earthquake, storm, or landslide. They may occur due to damage to the infrastructure of the city such as inoperative valves, pipeline breaks, leakage in potable or sewage systems or traffic control lights. Traffic accidents may trigger bona-fide emergencies if they require City employees to repair or clean up damage or assist with traffic control. Citizen complaints that require after-hours attention are bona-fide emergencies. Classified employees who occasionally receive phone calls outside of their regularly scheduled working hours from standby personnel or personnel on an emergency call-out, to get supervisory direction, shall receive a minimum of 30 minutes of regular pay for each phone call. XV. VACATION a. Vacation Accrual Classified employees shall accrue vacation hours based on the following schedule: Length of Service Annual Hours Accrued 0-3 years 80 4-7 years 132 8-10 years 148 11-19 years 164 20 years or more 172 Accrual at the next highest increment rate shall commence on the first day of the fourth, eighth, eleventh and twentieth year of employment, respectively. For example, an employee hired on January 1, 2010 would accrue at 80 hours per year, until January 1, 2013, when the accrual rate would change to 132 hours per year. The maximum amount of vacation time, which may be accrued and used, for time-off shall be 300 hours; vacation accrual shall cease upon reaching 300 hours. The maximum amount of vacation time, which will be compensated for in cash upon separation from City, shall be 300 hours. It shall be the responsibility of the employee to utilize credited vacation leave within the limitations set forth herein. Bargaining unit employees who have reached the maximum accrual of 300 hours shall have the right to "cash out" up to 40 hours of vacation per fiscal year if they have used at least two weeks of vacation within the previous 12 months, and obtain approval from their Department Head. Requests to "cash out" vacation based on the criteria stated above may be submitted when a bargaining unit employee reaches 280 hours. The hours will ATTACHMENT 10 - Page 11 of 31 9 be paid out to the employee during the pay period when the employee reaches the 300 hour limit to avoid the loss of any accrual due to the limit being reached. On January 1, 2015, vacation accruals that exceed 300 hours will be reduced to 280 hours and set aside in a separate bank, which shall be used before other vacation leave hours. b. Vacation Usage Total vacation allowance shall be based upon the number of months of City service computed to the nearest half month. It shall be the responsibility of the employee and Department Head to assure utilization of credited vacation leave within the limitations set forth herein. The time during the calendar year at which an employee may take vacation leave shall be determined by the Department Head, but with due consideration of the employee’s request and particular regard for the needs of the City. Eligible employees shall accrue vacation beginning with the date of hire. c. Vacation Benefits for Terminating Employees In the event of termination of employment, the employee shall be paid for any accrued and unused vacation leave and compensation time which has accrued within the limits specified above. d. Holidays Occurring During Vacation When one or more legal municipal holidays fall within a vacation leave, such day or days shall not be charged as the vacation leave. XVI. SICK LEAVE Sick leave shall mean the time during which an employee is permitted to be absent from the duties of City service by reason of sickness or injury which incapacitates or prevents the employee from performing assigned duties, without any deduction being made from salary or compensation, and shall include, in certain cases, serious illness or death of a member of the employee's immediate family. It will be the responsibility of the Department Head to periodically review the use of sick leave in the department. Abuse of sick leave may be used as a factor in determining employee performance for employee evaluations. The legitimate use of FMLA qualified sick leave shall not be used as a factor in determining employee performance for evaluation. Sick Leave Allowance Employees shall be entitled to eight (8) hours sick leave for each calendar month of service. There shall be no limit on the amount of sick leave which may be accumulated. ATTACHMENT 10 - Page 12 of 31 10 a. When Sick Leave May Be Taken Sick leave may not be used until it is earned. Sick leave earned during a pay period may be utilized for a qualifying absence occurring during that pay period. Sick leave shall be taken only in case of actual and necessary sickness or disability of the employee. If an employee has exhausted all accrued sick leave, the employee may utilize accrued vacation time, compensatory time, and/or floating holiday leave to cover an absence that would otherwise be unpaid, provided that the absence is supported by a doctor’s note when requested by the City. Nothing herein shall prevent the City from disciplining an employee for abuse of sick leave under the Personnel Rules. Eligible employees may utilize a maximum of ninety-six (96) hours of accumulated sick leave with pay in the event of 1) the employee's presence is required elsewhere because of family medical and dental appointments, serious illness, injury, disability or death of a member of the employee's immediate family; 2) official order to appear in court as a litigant or as a witness; and 3) personal necessity as defined and limited below. Personal necessity leave can be used by an employee at a rate of 24 hours per year for absences other than illness or disability and the absences shall be deducted from accumulated sick leave. For the term of this contract (7/1/2021 – 6/30/2024), Personal necessity leave may be used at a rate of 33 hours per fiscal year. At the conclusion of the contract, Personal necessity leave will revert back to 24 hours per fiscal year. Sick leave or personal necessity leave is not intended for taking care of personal business which could be taken care of at another time. Personal necessity is considered to be: i. a personal matter that requires your attention which cannot be taken care of except during the normal working hours; or ii. a matter that requires your attention, such as a hot water heater flooding your home, fire or robbery. The nature of the personal necessity need not be disclosed in writing on the Absence Request Form, but it shall be discussed with the employee's Supervisor, Department Head, and the Personnel Officer or designee. This information shall be treated confidentially by all parties involved. Sick leave shall not be used in lieu of or in addition to vacation for the intent of extending vacation. When an employee is compelled to be absent from employment by reason of injury arising from and in the course of City employment as determined by the Workers' Compensation law, the employee may elect to apply accrued sick leave, if any, in such amount that when added to Workers’ Compensation benefits equals the employee's gross salary. Earned vacation time and compensatory time off may be utilized in a similar manner. b. Notification of Illness by Employee ATTACHMENT 10 - Page 13 of 31 11 An employee on sick leave shall notify their supervisor no later than the beginning of the assigned workday. When on FMLA leave, the employee will be required to notify the City in compliance with the Family Medical Leave Act. c. Return From Sick Leave Upon returning from sick leave, a physician's certificate may be required if, in the opinion of the Department Head, it appears that an employee may be abusing sick leave privileges or to determine the validity of the employee's absence during the time for which sick leave was requested. Any employee absent from duty on sick leave for three (3) consecutive work days due to illness or accident may, at the discretion of the Department Head, be required to submit to a physical examination by a physician designated by the City to determine fitness to return. The cost of this examination is borne by the City. d. Sick Leave Payout Prior to Separation of Employment At the employee's request, the City will compensate in cash or in time off for unused sick leave accrued above 288 hours. The compensation formula will be consistent with the payout levels established in the Personnel Rules and Regulations, based upon years of service. e. Sick Leave Compensation Upon Termination of Employment City employees who terminate employment within the City shall be compensated in cash for unused sick leave at final rate of pay based on the following: Employees Hired Before July 1, 1999 Employees Hired On or After July 1, 1999 Less than 2 years: None Less than 2 years: None 2 to less than 15 years: 50% More than 2 years: 50% 15 to less than 20 years: 75% 20 or more years: 100% There shall be no maximum amount of unused sick leave eligible for cash compensation subject to the foregoing schedule. f. Annual Sick Leave Incentive Program Employees with greater than 288 hours of sick leave and who have used two days or fewer in the previous fiscal year shall have the right to cash-out up to two days of sick leave at 100% the following July 15th. This will be paid out on the last pay-check in July. XVII. BEREAVEMENT LEAVE An employee shall be granted a leave without loss of pay in case of death of a member of the employee's immediate family. Such leave is designated as bereavement leave. Up to five (5) days leave without loss of pay shall be granted for the death of a member of the employee's immediate family. Immediate family as used in this section is defined as the employee's spouse, child, foster child, grandchild, stepparent, ATTACHMENT 10 - Page 14 of 31 12 legal guardian, stepchild, parent, brother, sister, grandparent, grandparent-in-law, mother-in-law, father- in-law or: a. Any other relative by blood or marriage who is a member of the employee's household. (Employees may be required to submit proof that the deceased relative was a member of the employee's household prior to the time of death.) b. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required to handle funeral arrangements and/or matters of estate. In addition, bereavement leave may be granted on a case by case basis under other circumstances at the discretion of the City Manager or designee when it is in the best interest of the City to do so. Time off beyond these parameters shall be charged to any type of available leave. XVIII. SCHOOL ACTIVITY LEAVE Pursuant to California Labor Code Sections 230.7 and 230.8, parents, guardians and grandparents having custody, of school-age children shall be allowed leave from their jobs, with or without pay, as may be necessary to participate in school activities such as parent-teacher conferences, disciplinary matters, school programs and related events with their children. Such leave is limited to 40 hours per school year, at a maximum of 8 hours per month. Employees must give reasonable advance notice to the employer to permit work coverage, and may be required to provide documentation from the school that the employee participated in the activity on the specific date and time. Leave properly requested in advance shall not be denied. XIX. JURY DUTY LEAVE Regular and probationary employees who are summoned to serve on jury duty or subpoenaed as a witness due to a work-related matter in any court in this State of the United States, or any administrative board of tribunals, shall be entitled to a leave of absence with pay while serving. Employees may keep fees and fees for mileage received while serving. Employees must return to work if not required to attend jury duty on a particular day. An employee who is released from jury duty with four hours or more remaining in his or her normal work day shall report back to his/her supervisor. Reporting back means that the employee has contacted his/her supervisor via a phone call (not a voicemail message), text, or email, and received a response back from the supervisor. An employee may be required to show proof of attendance to serve on jury duty or as a subpoenaed witness. XX. DONATION OF BLOOD LEAVE The City shall grant each employee in the unit of representation reasonable time off for the purpose of making a donation of blood during City-sponsored blood drives. No charge will be made against vacation, ATTACHMENT 10 - Page 15 of 31 13 sick or any other type of leave when such absence is approved in advanced by the employee's supervisor/department head. XXI. FAMILY CARE LEAVE (See the City’s Personnel Rules and Regulations) XXII. ON-THE-JOB INJURY LEAVE Whenever an employee is compelled to be absent from active duty due to an injury disability arising out of and in the course of employment, such employee shall be entitled to receive an On-the-Job Injury Leave With Pay for up to the first three consecutive working days of such absence. The granting of such leave shall be conditioned upon the following: a. the absence is at the discretion of a licensed medical physician or other designated health care professional. b. supervisory personnel have been properly notified of such injury or disability and an on-the-job injury report has been properly completed and submitted. c. the injury occurred while the employee was performing work duties on the job. Whenever the On-the-Job Injury Leave extends beyond the first three working days, the employee will be allowed to use all accrued leave to supplement the Workers' Compensation allowance to achieve the equivalent of 100% of his/her salary. XXIII. HOLIDAYS All City employees shall have the following holidays with pay and shall not be required to work on such holidays except as hereinafter provided: a. January 1st (New Year's Day) b. Third Monday in January (Martin Luther King, Jr. Day) c. Third Monday in February (Washington's Birthday) d. Last Monday in May (Memorial Day) e. July 4th (Independence Day) f. First Monday in September (Labor Day) g. November 11th (Veteran's Day) h. Fourth Thursday in November (Thanksgiving Day) i. The day following Thanksgiving Day j. December 24th (Christmas Eve) k. December 25th (Christmas Day) l. December 31 (New Year's Eve Day) m. Floating Holiday (20 hours) Whenever a holiday falls on a Sunday not scheduled as a regular work day, the following Monday shall be observed as the holiday. Whenever a holiday falls on a Saturday not scheduled as a regular work day, the City will recognize the holiday on a case by case basis and observe it either on the Friday before the holiday ATTACHMENT 10 - Page 16 of 31 14 or the Monday after the holiday, based on the needs of the community. The determination of the holiday observance will be made when the City issues the master holiday schedule each year. The exception to this is as outlined in the City Hall Holiday Closure Schedule. Employees on a 9/80 schedule will be able to bank holiday hours for those holidays that occur on their flex day off. The following shall apply to the use of Holiday banked hours: • banked hours will be capped at 24 • hours banked are not compensable - they cannot be cashed out • banked hours must be used before any other kind of leave, except for sick leave • employees will be strongly encouraged to use banked hours within a reasonable period of time, preferably by the end of each fiscal year. An employee must have been paid for the entire amount of regularly scheduled hours of the days immediately prior to and following a City holiday in order to be paid holiday pay. City Hall Holiday Closure Schedule: City Hall shall be closed from Christmas Eve through New Year’s Day Year 1 City Hall closed 12/24/21 – 1/2/22 Employees able to use leave time to cover 12/29 and 12/30 2021; 12/24=12/24, 12/25=12/27, 12/31=12/31, and 1/1/22=12/28/21. Year 2 City Hall closed 12/24/22 – 1/2/23 Employees able to use leave time to cover 12/29 and 12/30 2022; 12/24=12/26, 12/25=12/27, 12/31=12/28, and 1/1/23=1/2/23. Year 3 City Hall closed 12/23/23 – 1/1/24 Employees able to use leave time to cover 12/28 and 12/29 2023; 12/24=12/26, 12/25=12/25, 12/31=12/27, and 1/1/24=1/1/24. Employees shall use appropriate accrued paid leave (i.e., vacation, comp time, floating holiday, or Personal Necessity), or leave without pay to cover the closed days that would otherwise be work days. Certain employees will be required to work to provide essential services. Essential services required to be provided during the closure will be determined by the City no later than July 1 of each year and notification will be provided to the employees required to work during the closure. Employees required to work during the closure will not be required to use paid leave during the closure and would be compensated at time-and-one-half for those hours worked on regular work days. XXIV. WORK ON A HOLIDAY Hours worked on a Holiday shall be paid at 1½ times employees' regular pay. Any full-time employee who is required to work on a holiday shall be entitled to be paid for the holiday plus time-and-one-half for all hours worked on the holiday or compensatory time off at time-and-one-half. ATTACHMENT 10 - Page 17 of 31 15 XXV. FLOATING HOLIDAY Probationary and regular full-time employee shall be credited with a total of twenty (20) hours of compensated time off on July 1st of each year. The time(s) which the employee may elect to use this leave shall be arranged with and approved by the employee’s supervisor. The floating holiday hours must be used prior to June 30th or shall be forfeited. Employees hired on July 1st through September 30th receive twenty (20) hours of floating holiday, employees hired on October 1st through December 31st receive fifteen (15) hours of floating holiday, employees hired on January 1st through March 31st receive ten (10) hours of floating holiday, and employees hired on April 1st through June 30th receive no floating holiday. XXVI. MEDICAL, DENTAL, VISION INSURANCE AND COBRA The City provides medical, vision and dental insurance for City employees. The insurance becomes effective the first day of the month following the date of hire. Medical Insurance - CalPERS The City provides active employees in the bargaining unit up to the highest CalPERS HMO premium in each coverage category (E, E+1 or E+Family). If the plan the employee selects costs less than the highest HMO for his/her category, the employee's premiums are fully paid by the City and the employee does not receive the difference between the highest HMO amount and the cost of the plan he/she selects. If the plan the employee selects costs more than the highest HMO for his/her category, the difference is paid by the employee through pre-tax payroll deduction. The City's "total" contribution is calculated by adding the cost of the City's dental insurance and vision insurance premiums to the highest HMO medical premium by coverage category. Together this is the "Highest HMO Amount". Effective January 1 2015, and each year thereafter, the Highest HMO Amount will be compared to the Highest HMO Amount for the previous year by coverage type (E, E+1 or E+Family). Due to rate changes, the new Highest HMO premium may be a different medical plan from a different health insurance carrier. If the new Highest HMO Amount is larger than the previous year's total, the City's total contribution will increase by 75% of the increase. Effective January 1, 2020, the City’s total contribution will decrease to 60% of the increase. If the new Highest HMO Amount is the same or less than the previous year's total, the City's total contribution will remain the same. Opting out of Medical Insurance The City shall allow employees who show proof of group medical insurance coverage provided by a spouse, to opt out of the City's medical insurance coverage. The City shall provide to employees who wish to opt out of medical insurance coverage and meet the above criteria, an "opting out" amount of $325 per month. The opt-out amount will increase to $350 per month, effective January 1; 2019, $375 per month, effective January 1, 2020; and $400 per month, effective January 1, 2021. Employees must remain enrolled in the City's dental and vision plans. These premiums will be paid for by the City. ATTACHMENT 10 - Page 18 of 31 16 Vision Insurance - Vision Service Plan Dental Insurance - Aetna Effective January 1, 2015, the maximum allowable benefits under the dental insurance policy limit will increase from $1,000 to $2,000. COBRA The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires that the group health plans provide employees and their dependents the opportunity to continue health care coverage under the plan in certain circumstances where coverage under the group health plan would otherwise terminate. While the City must make continued health coverage available, it can charge qualified beneficiaries up to 102% of the cost of coverage if continuation of benefits under the group plan is desired. Health Benefits While on Disability Leave of Absence Whenever an employee is absent from work due to a physical or psychological injury or illness, the City shall maintain the employee's coverage under the City's group health plan on the same conditions as coverage would have been provided if the employee has been employed during the leave period, for a period not to exceed twelve (12) continuous months. XXVII. IRS CODE SECTION 125 PLAN The City shall set up a Cafeteria Plan, under IRS Code Section 125, to pay for medical, dental and vision premiums. The City shall provide to active employees in the bargaining unit a basic employee contribution amount equal to the PEMCHA minimum contribution amount (adjusted annually) and a cafeteria amount which added together equals a contribution amount as specified above in the previous section (XXVI). Employees shall have the ability to elect which medical carrier to enroll with. Dental and vision insurance coverage shall also be a part of the cafeteria plan. The City will provide classified employees the opportunity to participate on a voluntary basis in a Dependent Care Assistance Program (Section 129) under Internal Revenue Code Section 125, which allows employees to redirect part of their salary, before it is taxed, to be used for child, elderly and dependent care and eligible medical expenses. XXVIII. RETIREE HEALTH SAVINGS ACCOUNT The City provides employees with a retiree health savings plan established through ICMA-RC. XXIX. LIFE INSURANCE The value of life insurance coverage for each classified employee is the equivalent to the annual salary, plus $20,000. ATTACHMENT 10 - Page 19 of 31 17 XXX. PRE-PAID LEGAL SERVICES The City will offer this benefit at the sole expense of the employee. XXXI. COLLEGE SAVINGS PROGRAM (529 PLAN) The City will offer this benefit at the sole expense of the employee. XXXII. RETIRING EMPLOYEE RECOGNITION PROGRAM The Retiring Employee Recognition Program provides for a salary incentive for long term City service. The guidelines and definitions for this program are detailed in Administrative Policy No. 223, Retiring Employees Recognition Program (Incentive for Long-Term City Service). Employees hired on or after July 1, 2009, are not eligible to participate in this program. XXXIII. RETIREMENT PLAN All full-time employees become a member of the Orange County Retirement System (OCRS). The City shall pay 3.6% of the employee's share of the retirement contribution for the first two years of employment. After two years of employment, the City shall pick up 100% of the employee's share of the retirement contribution Enhanced Retirement Benefit - The City has contracted with OCERS to provide an enhanced retirement program with the Orange County Employees Retirement System (OCERS) for the 2.7% at 55 based on an average three highest years salary benefit, effective January 1, 2004. This benefit will be applicable to all years of service. The Classified group has agreed to an additional payroll deduction in order to offset the increased cost of the employer share and employee share of the enhanced benefit. This additional deduction will be as follows: Less than two years of service 4.47% After two years of service 6.26% Effective July 1, 2012, each employee shall pay 50% of the employee contribution that was being paid on behalf of the employee by the City prior to July 1, 2012. Effective July 1, 2013, each employee shall pay the full employee contribution to retirement and the City will no longer pay any portion of the employee's contribution to retirement. The intent of these changes is to have employee's paying the employee contribution to retirement and the City paying the employer contribution to retirement. The changes are being phased in two years with the first change taking effect July 1, 2012, and the second change taking effect July 1, 2013. Effective January 1, 2012, any new employees hired on or after January 1, 2012, shall pay the full employee contribution to retirement with no payment of the employee's contribution by the City. ATTACHMENT 10 - Page 20 of 31 18 Effective on or about July 1, 2012, the City shall implement a second tier retirement formula (2%@57). This second tier retirement formula shall apply to all employees hired on or after the date the second tier formula becomes effective. In accordance with the 2012 Pension Reform Act, effective January 1, 2013, the City shall implement a third retirement formula which shall apply to new employees who become new members, as defined by the Pension Reform Act, of the Orange County Employees Retirement System, on or after January 1, 2013. Effective January 1, 2015, employees that are new to public service may choose between two retirement plan options: 1. The Orange County Employees Retirement System's 2.5% @ 67 defined benefit retirement formula. Or 2. Hybrid Plan: The Orange County Employees Retirement System's 1.62% @ 65 defined benefit formula combined with a 401(a) defined contribution retirement plan. Employees who choose the Hybrid Plan may make voluntary and irrevocable contributions, including leave payouts, to the 401(a) defined contribution retirement plan. They City will match an employee's contribution to the 401(a) defined contribution plan up to one (1%) of the employee's base salary. Eligible employees have thirty (30) days from the date of hire to elect the 2.5% @ 67·defined benefit retirement formula or the 1.62% @ 65 Hybrid Plan. In the event an eligible employee does not make an election during the thirty (30) day period, it will be deemed that the employee elected the 2.5% @ 67 defined benefit retirement formula. XXXIV. SHORT/LONG-TERM DISABILITY INSURANCE Eligible employees shall receive short- and long-term disability coverage or income protection of up to two-thirds of salary during disability periods due to non-job related injury or illness. Benefits are payable after a disability elimination period of 14 days is satisfied. XXXV. ACTING STATUS Shall be the temporary assignment of a regular or probationary employee to a higher level classification to fill a vacant position or to provide a replacement for an employee who remains on a leave of absence. Employees given an acting assignment for 14 calendar days or more shall receive acting status pay equivalent to the minimum salary rate for that position such that the minimum adjustment would be at least 5% above the employee's current salary with the approval of the Department Head and the Human Resources Manager. Acting status shall be retroactive to the first day and subject to no additional benefits. An Acting Appointment shall generally be less than 12 months of duration and generally only last for the duration of the recruitment process. Extension beyond 12 months shall be subject to the approval of the City Manager or designee. ATTACHMENT 10 - Page 21 of 31 19 XXXVI. RECLASSIFICATION OF POSITION Whenever a position is reclassified which is currently occupied by an incumbent who is satisfactorily performing the duties of the proposed position, the City shall place that incumbent in the reclassified position, without the need to undertake a recruitment. Such reclassifications shall not result in demotion. A reclassification may occur when the essential duties of a position change due to new technology, new regulations or laws, reorganization within the City, or other compelling reasons that increase to a higher level the duties performed by the position. The City shall notify the Association whenever a reclassification is to occur to allow the Association to request to meet and confer over the impact and salary of the position. Reclassification of an employee in a reclassified position may occur, at the City's discretion, if s/he has been satisfactorily performing the duties of the position for at least six months, as evaluated by the Department Head. Out-of-Class grievances that result in position reclassifications shall also result in the reclassification of the employee, provided s/he has been satisfactorily performing the duties of the position for at least 6 months, as evaluated by the Department Head. XXXVII. PROMOTIONS, TRANSFERS AND VOLUNTARY DEMOTIONS a. Promotions Promotion refers to the movement of an employee from a lower level position in one class to another class imposing higher duties and responsibilities, requiring higher qualifications and providing a higher maximum rate of pay. Insofar as practical and consistent with the best interest of the City, as determined by the Personnel Officer or designee, vacancies shall be filled by promotion from within whenever qualified employees exist. Promotion-only classes will be established by the Personnel Officer or designee in consideration of input from the Department Heads. i. Requirements for Promotional Candidates Only regular employees who meet the requirements set forth in the Personnel Rules and Classification Plan and who received a satisfactory overall rating at the time of their last performance evaluation may compete in promotional opportunities. Any employee who wishes to apply for promotional opportunity must also have completed at least six (6) months in their present position. ii. Rejection Following Promotion ATTACHMENT 10 - Page 22 of 31 20 An employee rejected during or at the conclusion of the probationary period following promotional appointment shall be reinstated to the position from which he/she was promoted, or comparable position or class from which he/she was promoted and shall receive credit for time served in the promotional position unless charges are filed and the employee is discharged in the manner provided for in the Personnel Rules and Regulations. b. Transfers A transfer occurs when an employee changes positions which are in the same classification having the same maximum salary and requiring substantially the same qualifications. This may or may not involve a change of an employee's place of employment from one department to another. i. Conditions for Transfer An employee, who does not possess the minimum qualifications for an open position, shall not be transferred to that position. A qualified employee may be transferred, provided the transfer has been approved by the employee's supervisor, the new supervisor and the Personnel Officer or designee. ii. Employee Requested Transfers New employees who have completed their probationary period in their current positions may apply for a transfer. All other employees, who have worked a minimum of six (6) months in their current position, may apply for a transfer. A request may be submitted only when a vacancy exists. The employee's request for transfer will be considered on the basis of the employee's qualifications for the vacant position, the employee's best interests, and the best interests of the City. Requests for transfers must be received according to deadlines established by the Personnel Officer or designee. iii. Employer Initiated Transfers The City of San Juan Capistrano reserves the right to transfer its employees from one position to another or one department to another, if the transfer is necessary for the purpose of economy or efficiency. iv. Job Transfer Opportunities The City will consider lateral transfers and promotional opportunities to vacant positions within the same or similar job class. The employee requesting the transfer must have had a "satisfactory" rating on their last evaluation and meet the minimum qualifications for the position. Employees eligible for transfer or promotional opportunities based on the minimum qualifications of the position shall be given the opportunity to interview. The City would have no obligation to hire any of the applicants for transfer or promotion. c. Voluntary Demotion A regular employee may request a voluntary demotion to a vacant position in a class with a lower maximum salary rate provided the employee possesses the minimum qualifications of that class. Such ATTACHMENT 10 - Page 23 of 31 21 requests must be filed with the Personnel Officer or designee and require approval of the current Department Head and that of the Department Head of the vacant position. XXXVIII. PROMOTIONAL EXAMINATIONS Promotional examinations may be conducted whenever, in the opinion of the Personnel Officer or designee and after consultation with the Department Head, the need of the service so requires. Promotional examinations may include any of the selection techniques or any combination thereof mentioned above. Only current employees who meet the requirements of the position and the provisions of the Personnel Rules may compete in promotional examinations. XXXIX. REGULAR APPOINTMENT FOLLOWING PROBATIONARY PERIOD Original appointments to positions within the classified service shall be subject to a probationary period of no less than six months and no more than twelve months. At the conclusion of the probationary period, the employee will be notified of regular status, provided the appointing authority approves the action. Initial probationary appointments may be extended at the sole discretion of the Department Head for up to six months. Under such circumstances, the Department Head will notify the affected employee in writing of the extension of the initial probationary period. Achievement of regular employee status shall be based upon successful completion of a probation period, as determined by the Department Head and approved by the Personnel Officer or designee. Promotional appointments shall be subject to a probationary period of six months. XL. TERMINATION - RESIGNATION An employee wishing to leave the City in good standing shall file with the immediate supervisor at least two (2) weeks before leaving the City a written resignation stating the effective date and reason(s) for leaving. The resignation shall be forwarded by the Department Head to the Personnel Office and City Manager. XLI. LAYOFFS AND RE-EMPLOYMENT a. Conditions for Layoff The City Manager, with the concurrence of the City Council, may abolish any position, because of material change in duties and organization, or shortage of work or funds. The employee holding such position or employment may be laid off without disciplinary action and without the right of appeal. No regular employee shall be laid off until all temporary and probationary employees holding positions in the same classification in the department are first laid off. Only those ATTACHMENT 10 - Page 24 of 31 22 employees in the department assigned to the classification in which the position is to be abolished shall be involved in this layoff procedure. b. Notice of Layoff The Association and employees to be laid off shall be given at least fourteen (14) calendar days’ notice. c. Order of Layoff 1. Within the classification, employees will be ranked by seniority with the most senior employee given the highest ranking and the next most senior employee given the next highest ranking and so forth. For the purpose of this section, seniority shall be determined as total number of years of full-time employment with the City of San Juan Capistrano. This category is given a weight of 30%. 2. Within the classification, employees will also be ranked by performance, based upon performance evaluations, official records, and/or qualified testing procedures where applicable. The employee within the classification with the highest performance rating shall be given the highest ranking and the next most competent employee shall be given the next highest ranking, and so forth. This category is given a weight of 40%. a. To establish the performance ranking, each employee performance evaluation must be rated. A rating of 1 to 5 on the overall evaluation rating is assigned accordingly: Excellent = 5 Above Standard = 4 Meets Standards = 3 Needs Improvement = 2 Unsatisfactory = 1 3. Within the classification, employees will also be ranked by skill set, based upon education, licenses, and certificates obtained, which increase an employee's overall value to the organization. The employee with the greatest skill set within the classification shall be given the highest ranking and the employee with the next highest skill set level shall be given the next highest ranking, and so forth. This category will be given a weight of 30%. a. To establish the ranking for skill set, the following point system shall be applied: i. Education 1. PhD. = 4 points 2. Master's Degree = 3 points 3. Bachelor's Degree = 2 points 4. Associate of Arts Degree = 1 point ATTACHMENT 10 - Page 25 of 31 23 A degree must be directly related to the position in order for it to be awarded a point value. ii. Licenses Each professional license = 1 point iii. Certificates Each certificate = .5 point Certificates issued upon completion of a test conducted by a sanctioning body such as a governmental, professional, or academic organization, are considered valid certificates. Training certificates that indicate that an employee participated in a training course or seminar are not awarded any point value; however, they would be incorporated into the performance evaluation. d. Layoff Procedure The Department Head will total the point values of the three categories (seniority, performance, and skill set) for each employee within the classification to determine the order of layoff. Employees will be laid off in order of the numerical ranking, that is, an employee with a lower ranking would be laid off before an employee with higher ranking. e. Re-employment List The names of persons laid off in accordance with these rules shall be entered on a re-employment list for one year, except that persons appointed to regular positions shall, upon such appointment, be dropped from the list. When a vacancy occurs in the subject class, the appointing authority shall consider the former employees from the re-employment list. It is the responsibility of the employee on a re- employment list to keep the City informed of his/her current address and telephone number, and availability for work. f. Disability Separation In the event an employee cannot perform the essential functions of his or her position due to an injury or illness, the City may provide up to twelve (12) continuous months of leave or modified duty. The City will continue to make the full contribution for health, dental, & vision premiums during any or all of the 12 continuous months that the employee is on unpaid leave in accordance with the above. If, after twelve (12) continuous months, the employee is unable to return to his/her regular duties the following will apply. To the extent permitted under Federal and State law, an employee unable to perform the essential functions of his/her position, with or without reasonable accommodation, as a result of a physical or psychological illness or injury shall: ATTACHMENT 10 - Page 26 of 31 24 1. be separated from employment. Employees who are separated pursuant to this section shall be accorded procedural due process (i.e., notice and an opportunity to respond to the separation) in accordance with the appeal procedures for disciplinary actions outlined in these rules, Or 2. be offered the opportunity to resign from his/her position with the City of San Juan Capistrano and placed on a re-employment list for a period not to exceed one (1) year. Any employee returning to work shall provide the Personnel Officer verification from a medical practitioner that he/she can perform the essential functions of his/her position, with or without accommodation. If during the period in which the employee is on the re-employment list, the employee is physically and/or psychologically able to resume the duties of his/her previous position and there is a vacant position in his/her classification, the employee will be entitled to return to that position. Separation from employment under this section does not preclude the City or employee from applying for a disability retirement. XLII. GRIEVANCE PROCEDURE a. Matters Subject to Grievance Procedures A grievance shall be initiated through an informal first step when the employee notifies the supervisor verbally of his/her contention that the City has violated or misapplied a specific obligation expressed and/or written in the Personnel Rules and Regulations of the City. Personnel Division staff is available to assist Department Heads in such matters as the interpretation of Rules, documentation procedures and preparation of notices as requested. b. Notification of Grievance The second step in the grievance process shall be a written notice filed in a timely manner, on a form provided by the City which shall include at a minimum: 1. Nature of the grievance; 2. Date when the incident occurred; 3. Description of the incident; 4. Rule violated; and, 5. Specific remedy sought by the employee. c. Steps in the Grievance Process First Step Within ten (10) working days after the occurrence of the incident involved in the grievance, the employee may initiate the grievance process by discussing the matter informally with his/her immediate supervisor. An attempt shall be made to resolve the grievance between the employee and the immediate supervisor. ATTACHMENT 10 - Page 27 of 31 25 The supervisor shall deliver an oral or written response within ten (10) working days after submission of the grievance. Second Step If the grievance is not satisfactorily resolved in the first step, the grievance may be submitted in writing to the supervisor's supervisor, if any, within the department organization within ten (10) working days after the immediate supervisor's answer is received by the employee. After an attempt to resolve the grievance between the employee and his/her designated representative, if any, the intermediate supervisor shall deliver a written answer within ten (10) working days after submission of the grievance. If there is no intermediate supervisor, the grievance shall go directly to the Department Head. Third Step If the grievance is not satisfactorily resolved in the first and second steps, it shall be submitted in writing to the employee's Department Head within ten (10) working days after the intermediate supervisor's answer is received by the employee. The Department Head shall meet with the employee and his/her designated representative, if any, within ten (10) working days after submission of the grievance to the Department Head. The Department Head shall review the grievance and may affirm, reverse or modify the disposition made at the first and second steps and shall deliver a written answer to the employee within ten (10) working days after said meeting. d. Appeal of Decision If the grievance is not satisfactorily resolved, the employee may appeal the decision of the Department Head to the City Manager. At the option of the employee, the grievance may be submitted: i. Directly to the City Manager, or ii. To an impartial arbitrator who will provide an advisory opinion to the City Manager prior to the consideration of the grievance by the City Manager, or iii. To a mediator from the State Mediation and Conciliation Service who will provide findings and recommendations to the City Manager prior to consideration of the grievance by the City Manager. When the appeal is submitted to the City Manager, it shall specify whether the employee desires to have the appeal considered directly by the City Manager or reviewed first by an impartial arbitrator or state mediator. Such submission must occur within ten (10) working days after the Department Head's written answer is received. e. Advisory Arbitration An employee may elect to use an impartial arbitrator to provide an advisory opinion to the City Manager prior to the consideration of the grievance by the City Manager. After a hearing on the merits of the grievance and considering evidence from all parties concerned, the impartial arbitrator shall submit a written advisory opinion to the City Manager. Within ten (10) working days after receipt of the written advisory opinion of the impartial arbitrator, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver a written decision to the employee within ten ATTACHMENT 10 - Page 28 of 31 26 (10) working days after said meeting. The City Manager's decision shall conclude the administrative appeals procedure. If an employee elects to use an impartial arbitrator, the arbitrator shall be selected jointly by the employee and his/her designated representative, if any, and the City. The cost of the arbitrator, if any, shall be born equally by the employee and the City. f. State Mediation An employee may elect to use a certified mediator from the State Mediation and Conciliation Service to provide findings and recommendations to the City Manager prior to the consideration of the grievance by the City Manager. After a hearing on the merits of the grievance and considering evidence from all parties concerned, the certified mediator shall submit a written summary of his/her findings and recommendations to the City Manager. Within ten (10) working days after receipt of the written summary of findings and recommendations from the certified mediator, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver a written decision to the employee within ten (10) working days after said meeting. The City Manager's decision shall conclude the administrative appeals procedure. If an employee elects to use a certified mediator from the State Mediation and Conciliation Service, the certified mediator shall be selected jointly by the employee and his/her designated representative, if any, and the City. The cost of the certified mediator, if any, shall be born equally by the employee and the City. g. City Manager An employee may elect to submit the grievance directly to the City Manager for a final and binding decision. Within ten (10) working days after submission of the grievance to the City Manager, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver written decision to the employee within ten (10) working days after said meeting, and such decision shall conclude the administrative appeals procedure. h. Extension of Time Any or all of the time limitations mentioned above with reference to filing and response times may be extended by mutual agreement between the employee and the City. XLIII. FAIR EMPLOYMENT PRACTICE The City of San Juan Capistrano assures any technique or procedure used in recruitment and selection of employees shall be designed to measure only the job-related qualifications of applicants. No recruitment or selection technique shall be used which, in the opinion of the Personnel Officer or designee, is not ATTACHMENT 10 - Page 29 of 31 27 justifiably linked to successful job performance. It is the policy of the City that no technique, procedure or policy in recruitment and selection shall be discriminatory to any group protected by state or federal legislation. XLIV. NON-DISCRIMINATION POLICY The City shall offer equal employment to all persons without regard to race, creed, color, sex, age, national origin, religion, physical or mental handicap or veterans' status, or any other legally-protected class. No applicant is to be discriminated against or given preference because of these factors. This policy is intended to apply to recruiting, hiring, promotions, upgrading, layoffs, compensation, benefits, termination and all other privileges, terms and conditions of employment. XLV. CONTINUATION OF BENEFITS All other fringe benefits previously granted and currently in effect to represented employees shall remain in full force and effect for the time period of July 1, 2021 to June 30, 2024 unless modified by the provisions of this agreement. XLVI. SEPARABILITY The provisions contained in this agreement have been bargained for and agreed to independently, and no particular clause, condition, or agreement is contingent or dependent upon any other; therefore, should any such clause, condition, or agreement be held to be void or unenforceable, the remainder of the terms and conditions of this agreement shall remain in full force and effect. XLVII. PERSONNEL RULES Proposed changes to the Personnel Rules submitted during the negotiation of this agreement are incorporated into the revised Personnel Rules. XLVIII. TELEWORKING POLICY During the first year of the contract, the City and CEA will meet to discuss the possibility of establishing a Teleworking Policy and what a policy might contain. ATTACHMENT 10 - Page 30 of 31 28 This agreement, entered into this 18th day of May, 2021. SAN JUAN CAPISTRANO MUNICIPAL EMPLOYEE RELATIONS OFFICER Benjamin Siegel, City Manager SAN JUAN CAPISTRANO CITY EMPLOYEES ASSOCIATION Laura Stokes, CEA President ATTEST: CITY OF SAN JUAN CAPISTRANO ___________________________ Maria Morris, City Clerk Approved by the City Council of the City of San Juan Capistrano on this 18th day of May, 2021. ATTACHMENT 10 - Page 31 of 31 0 MEMORANDUM OF UNDERSTANDING July 1, 2021 – June 30, 2024 BETWEEN CITY OF SAN JUAN CAPISTRANO AND SAN JUAN CAPISTRANO MANAGEMENT AND PROFESSIONAL EMPLOYEES ASSOCIATION ATTACHMENT 11 - Page 1 of 30 1 TABLE OF CONTENTS PAGE NO. _________________________________________________________________________ Agreement………………………………………………………………………... 1 Recognition………………………………………………………………………. 1 I. Salary……………………………………………………………………… 1 II. Pay Plan Structure……………………………………………………….. 1 III. Management Flextime…………………………………………………… 2 IV. Emergency/Disaster Response………………………………………… 2 V. Bilingual Pay………………………………………………………………. 3 VI. Work Boot Reimbursement……………………………………………… 3 VII. Deferred Compensation Program………………………………………. 3 VIII. Mileage Reimbursement………………………………………………… 4 IX. Auto Allowance…………………………………………………………… 4 X. Ride Share Program……………………………………………………… 4 XI. Tuition Reimbursement Program……………………………………….. 4 XII. Vacation…………………………………………………………………… 4 XIII. Sick Leave………………………………………………………………… 5 XIV. Bereavement Leave……………………………………………………… 8 XV. School Activity Leave…………………………………………………….. 9 XVI. Jury Duty Leave…………………………………………………………... 9 XVII. Donation of Blood………………………………………………………… 9 XVIII. Family Care Leave……………………………………………………….. 9 XIX. On-the-Job Injury Leave…………………………………………………. 9 XX. Compensation for Job Connected Illness or Injury……………………. 10 XXI. Non-Work Related Disability Leave…………………………………….. 10 XXII. Military Leave……………………………………………………………... 10 XXIII. Leave of Absence Without Pay Requested by an Employee………… 10 XXIV. Administrative Leave…………………………………………………….. 11 XXV. Unauthorized Absence…………………………………………………... 11 XXVI. Holidays…………………………………………………………………… 11 XXVII. Floating Holiday…………………………………………………………... 12 XXVIII. Medical, Vision, Dental, Insurance and Cobra………………………… 12 XXIX. IRS Code Section 125 Plan…………………………………………….. 14 XXX. Retiree Health Savings Account………………………………………… 14 XXXI. Life Insurance…………………………………………………………….. 14 XXXII. CalPERS Long Term Care………………………………………………. 14 XXXIII. Pre-Paid Legal Services…………………………………………………. 14 XXXIV. College Savings Program (529 Plan)…………………………………… 15 XXXV. Retiring Employee Recognition Program………………………………. 15 XXXVI. Retirement Plan…………………………………………………………... 15 XXXVII. 401(a) Program…………………………………………………………... 16 XXXVIII. Short/Long-Term Disability Insurance…………………………………. 16 XXXIX. Acting Status……………………………………………………………… 16 XL. Reclassification of Position……………………………………………… 16 XLI. Promotions, Transfers and Voluntary Demotions…………………….. 17 XLII. Layoffs and Re-Employment……………………………………………. 19 XLIII. Grievance Procedure…………………………………………………….. 21 XLIV. Fair Employment Practice……………………………………………….. 24 ATTACHMENT 11 - Page 2 of 30 2 XLV. Non-Discrimination Policy……………………………………………….. 24 XLVI. Continuation of Benefits…………………………………………………. 24 XLVII. Separability………………………………………………………………... 25 XLVIII. Personnel Rules………………………………………………………….. 25 APPENDICES Appendix A Payout at Separation of Employment ATTACHMENT 11 - Page 3 of 30 1 AGREEMENT This agreement is entered into by the parties on behalf of the City of San Juan Capistrano, hereinafter known as “the City,” and the San Juan Capistrano Management and Professional Employees Association, hereinafter known as “the Management Association,” in accordance with the provisions of Section 3500-3510 of the California Government Code, otherwise known as the Meyers-Milias-Brown Act, and the Employer-Employee Relations Resolution of the City of San Juan Capistrano for the period of time commencing July 1, 2021, through June 30, 2024. All provisions of this agreement are effective upon adoption of this agreement by the City Council unless otherwise specified. RECOGNITION The City recognizes the Management Association as the “recognized employee organization” for all employees within the unit of representation, consisting of regular full-time employees in the following classifications: Accounting Manager Public Works Manager Assistant City Clerk Rate and Administration Manager Assistant Finance Director Safety & Emergency Services Manager Assistant Development Services Director Senior Accountant Assistant Public Works Director Senior Civil Engineer Assistant Utilities Director Senior Civil Engineer-Environmental Services Building and Code Enforcement Manager Senior Engineer City Engineer Senior Financial Analyst Community Services Manager Senior Management Analyst Economic Development/Redevelopment Manager Senior Planner Executive Services Manager Systems Business Analyst Historic Preservation Manager Technology Services Manager Management Analyst Utilities Engineer Principal Planner I. SALARY July 1, 2021 – 2% Wage Increase July 1, 2022 – 2% Wage Increase July 1, 2023 – 2.5% Wage Increase July 1, 2021, one-time recognition payment of $500, subject to applicable taxes. II. PAY PLAN STRUCTURE The basic pay range of all classifications shall consist of a Basic Compensation Schedule of hourly, bi-weekly and monthly rates. There shall be a five-percentage difference between each step in a five-step range. A. Pay Increases On each anniversary date an employee shall be eligible for a one step (5%) adjustment until the maximum pay rate of the assigned class is reached. The adjustment shall be ATTACHMENT 11 - Page 4 of 30 2 implemented upon recommendation by the Department Head and approval by the Personnel Officer. Pay adjustments delayed because of unsatisfactory performance, but granted after the anniversary date, shall affect the anniversary date and date the next pay increase will be considered. B. Pay Adjustment Upon Promotion Upon promotion, an employee is entitled to advance to the nearest step of the new range that is at least 5% higher than the previously assigned rate. C. Pay Adjustment Upon Demotion When an employee is voluntarily demoted, a mutually agreed-upon pay step in the new range shall be assigned. When an employee is demoted as a result of disciplinary action, the appointing authority imposing the discipline shall set the step. D. Pay Adjustment Upon Re-employment Upon re-employment, an employee shall be assigned the same step in the salary range that had been attained prior to layoff. Benefit accruals shall be equal to the benefit level the employee attained prior to layoff, except as precluded by applicable law. E. Special Merit Pay A pay adjustment of up to 5% may be granted in advance of an employee’s anniversary date in recognition of exceptional performance. The adjustment shall be made in rare cases and shall be recommended by the responsible Department Head and approved by the Personnel Officer or designee, and must be accompanied by a current employee evaluation and memorandum supporting the request. Special merit increases shall have no effect upon the anniversary date at which a regular step increase may be considered (i.e., a second step advancement can occur at one’s anniversary date.) III. MANAGEMENT FLEXTIME Management personnel may flex their schedule as needed during the pay period to allow for required attendance at extraordinary events or meetings or unscheduled or emergency situations. This option allows the management employee to operate with professional flexibility. Use of flextime will require prior approval by the Department Head. Although management employees have the ability to flex their schedules, this does not include telecommuting in-lieu of coming into the workplace. IV. EMERGENCY/DISASTER RESPONSE Employees exempt from the Fair Labor Standards Act are expected to work the hours necessary to complete the requirements of the position. In certain major emergency and/or disaster circumstances as declared and approved by the City Manager or ATTACHMENT 11 - Page 5 of 30 3 designee, exempt employees may be eligible to receive additional compensation (as determined by the City Manager) for emergency/disaster response, including, but not limited to, major fires, floods, earthquakes, terrorism events, or other natural or manmade disasters. The City Manager’s decision cannot be appealed or grieved. The City shall make reasonable efforts to provide meals, food, and shelter for all employees and volunteers responding to such incident(s), or the City may reimburse an employee or volunteer for reasonable expenses, as determined by the City Manager or designee. V. BILINGUAL PAY Qualified management employees who meet the following criteria shall receive a monthly stipend in recognition of their ability: 1. Employee must be assigned by the City Manager or designee to speak and/or translate written material in a language in addition to English. This includes such specialized communication skills as sign language. 2. Employees must, as needed, speak and/or translate a second language. 3. Employees able to communicate and/or translate verbal information shall receive $85 per month. 4. Employees able to translate verbal and written information shall receive $125 per month (i.e., the employee receives $125 per month because of the additional ability to translate written information, rather than the $85 noted above that is provided to an employee who provides verbal translation only). Employees assigned to translate written information will be required to be deemed qualified by the City. The City, at its discretion, may reassign an employee from a bilingual assignment to a position that does not require bilingual certification. An employee in a bilingual assignment may request assignment to a position that does not require bilingual certification. The request shall be made in writing to the City Manager or designee, who will consider it according to City needs and availability of a qualified replacement. VI. WORK BOOT REIMBURSEMENT The City will provide a work boot reimbursement up to $160 per pair of work boots for all field positions in the unit of representation. Reimbursement shall be provided for up to two pairs of work boots per year. VII. DEFERRED COMPENSATION PROGRAM City Employees may elect to have a portion of their salary withheld. The deferred amount is tax free until actually received and is invested in the meantime. As prescribed by applicable laws or plan provisions, funds may be withdrawn upon resignation, retirement or to a beneficiary upon death. ATTACHMENT 11 - Page 6 of 30 4 VIII. MILEAGE REIMBURSEMENT Management employees shall receive mileage reimbursement in accordance with IRS standards for all miles driven per month that exceed the $80.00 auto allowance below. Mileage from home to work and from work to home shall be deducted from any mileage calculation. Reimbursement is calculated by taking the total actual miles driven, multiplied by the current IRS reimbursement rate, minus the $80.00 auto allowance. IX. AUTO ALLOWANCE Management employees shall receive a monthly automobile allowance of $80.00. X. RIDE SHARE PROGRAM Employees who carpool, walk, bike, take the bus or the train to and from work at least twice per week shall, at the end of the fiscal year, be eligible for nine (9) hours of additional floating holiday time in the next fiscal year. Employees may qualify for this incentive by participating 104 times in the fiscal year (i.e., an average of 2 times per week x 52 weeks = 104 occasions). The Human Resources Department will provide the necessary forms associated with this program. XI. TUITION REIMBURSEMENT PROGRAM The Management and Professional Employees are hereby made eligible for the City’s Tuition Reimbursement program. The annual benefit shall be up to a maximum of $5,000/fiscal year for an employee, for a degree from an accredited college or university or certification program. The date of the final class day will determine which fiscal year the reimbursement falls under. The City will provided up to $20,000 annually for all City employees to participate and carryover any remainder to the next fiscal year up to a total pool amount of $35,000. If annual requests exceed amount available, amounts would be pro-rated based on requests. Program details are identified in Administrative Policy No. 214, Employee Tuition Reimbursement Program and the Personnel Rules. XII. VACATION A. Vacation Accrual Management employees shall accrue vacation hours based on the following schedule: Length of Service Annual Hours Accrued 0-3 years 108 4-7 years 145 8-10 years 160 11-19 years 175 20 or more years 180 ATTACHMENT 11 - Page 7 of 30 5 New accrual rates effective July 1, 2018. Accrual at the next highest incremental rate shall commence on the first day of the fourth, eighth, eleventh and twentieth year of employment, respectively. For example, an employee who started employment on 1/1/2010 would accrue 108 hours of vacation leave until 1/1/2013, at which time the accrual rate would increase to 145 hours annually. The maximum amount of vacation time, which may be accrued by management employees and used, for time-off shall be 300 hours. The maximum amount of vacation time, which will be compensated for in cash upon separation from City, shall be 300 hours. It shall be the responsibility of the employee and the Department Head to assure that employees utilize credited vacation leave within the limitations set forth herein. Bargaining unit employees who have reached the maximum accrual of 300 hours shall have the right to “cash-out” up to fifty (50) hours of vacation per year if they have used at least two (2) weeks of vacation within the previous twelve (12) months, and obtain approval from their Department Head. Requests to “cash-out” vacation based on the criteria stated above may be submitted when a bargaining unit employee reaches 280 hours. The hours will be paid out to the employee during the pay period when the employee reaches 300 hour limit to avoid the loss of any accrual due to the limit being reached. B. Vacation Usage The time during the calendar year at which an employee may take vacation leave shall be determined by the Department Head but with due consideration of the employee’s request and particular regard for the needs of the City. Eligible employees shall accrue vacation beginning with the date of hire. C. Vacation Benefits - Separation of Employment Upon separation of employment, see Appendix A, Payout at Separation of Employment. D. Holidays Occurring During Vacation When one or more legal municipal holidays fall within a vacation leave, such day or days shall not be charged as the vacation leave. XIII. SICK LEAVE Sick leave shall mean the time during which an employee is permitted to be absent from the duties of City service by reason of sickness or injury which incapacitates or prevents the employee from performing assigned duties, without any deduction being made from ATTACHMENT 11 - Page 8 of 30 6 salary or compensation, and shall include, in certain cases, serious illness or death of a member of the employee’s immediate family. It will be the responsibility of the Department Head to periodically review the use of sick leave in the department. Abuse of sick leave may be used as a factor in determining employee performance for employee evaluations. The legitimate use of sick leave, which qualifies under the FMLA, shall not be used as a factor in determining employee performance for evaluations. A. Sick Leave Allowance Employees shall be entitled to eight (8) hours sick leave for each calendar month of service. There shall be no limit on the amount of sick leave which may be accumulated. B. When Sick Leave May Be Taken Sick leave may not be used until it is earned and shall be taken only in case of actual and necessary sickness or disability of the employee. Eligible employees may utilize a maximum of ninety-six (96) hours of accumulated sick leave with pay in the event of 1) the employee’s presence is required elsewhere because of family medical and dental appointments, serious illness, injury, or disability or death of member of the employee’s immediate family; and 2) official order to appear in court as a litigant or as a witness; and 3) personal necessity as defined and limited below. Sick leave shall not be used in-lieu of or in addition to vacation for the intent of extending vacation. When an employee is compelled to be absent from employment by reason of injury arising from and in the course of City employment as determined by the Workers’ Compensation law, the employee shall apply accrued sick leave, if any, in such amount that when added to Workers’ Compensation benefits equals the employee’s gross salary. Earned vacation time off shall be utilized in a similar manner. If an employee exhausts his/her sick leave during the course of a personal illness, vacation leave may be used to cover the absence. Sick leave accrued during a pay- period may be used by the employee during that pay-period. Personal necessity leave can be used by an employee at a rate of twenty-four (24) hours per year for absences other than illness or disability, and the absences shall be deducted from accumulated sick leave. Sick leave or personal necessity leave is not intended for taking care of personal business, which could be taken care of at another time. Personal necessity is considered to be: i. A personal matter that requires your attention which cannot be taken care of except during the normal working hours; or, ATTACHMENT 11 - Page 9 of 30 7 ii. A matter that requires your attention, such as a hot water heater flooding your home, fire or robbery. The nature of the personal necessity need not be disclosed in writing on the Absence Request Form, but it shall be discussed with the employee’s Supervisor, Department Head, and the Personnel Officer or designee. All parties involved shall treat this information confidentially. C. Notification of Illness by Employee Except in emergency situations, an employee on sick leave shall notify their supervisor no later than the time set for beginning daily duties. When on FMLA leave, the employee will be required to notify the City in compliance with the Family Medical Leave Act. D. Return From Sick Leave Upon returning from sick leave, a physician’s certification may be required if, in the opinion of the Department Head, it appears that an employee may be abusing sick leave privileges or to determine the validity of the employee’s absence during the time for which sick leave was requested. Any employee absent from duty on sick leave for three (3) consecutive work days due to illness or accident may, at the discretion of the Department Head, be required to submit to a physical examination by a physician designated by the City to determine fitness to return. The cost of this examination is borne by the City. E. Sick Leave Payout Prior to Separation of Employment i. Cash-out of Sick Leave Employees with more than 288 hours of accrued sick leave may cash-out that portion of such leave above 288 hours at the payout levels established in Section 7.13 of the Personnel Rules and Regulations. In July of each year, employees with more than 288 hours of accrued sick leave who have used eighteen (18) hours or less of sick leave during the past fiscal year (July 1 – June 30), may cash-out up to eighteen (18) hours of sick leave at a conversion rate of 100%. This will be paid out on the last pay-check in July. ii. Conversion of sick leave to Vacation Leave Employees with more than 288 hours of accrued sick leave may convert to vacation leave that portion of such leave above 288 hours at the payout levels established in Section 7.13 of the Personnel Rules and Regulations. In July of each year, employees who use eighteen (18) hours or less of sick leave during the prior fiscal year (July 1 – June 30) shall be allowed to convert up to ATTACHMENT 11 - Page 10 of 30 8 twenty-seven (27) hours to vacation leave at a conversion rate of 100%, provided that they that they retain at least eighty (80) hours of accrued sick leave after the conversion. iii. Conversion of Sick Leave to Deferred Compensation In July of each fiscal year, employees may cash-out up to forty (40) hours of sick leave, at the payout levels established in Section 7.13 of the Personnel Rules and Regulations, provided they have contributed an equivalent amount of a Deferred Compensation account over the past fiscal year (July 1 – June 30) and will have at least eighty (80) hours of sick leave remaining after the conversion. F. Sick leave Compensation Upon Termination of Employment City employees who terminate employment within the City shall be compensated as noted in Appendix A, Payout at Separation of Employment, for unused sick leave at the final rate of pay based on the following: Employees Hired Before July 1, 1999 Less than 2 years: None Less than 15 years: 50% 15 to less than 20 years: 75% 20 or more years: 100% Employees Hired On or After July 1, 1999 Less than 2 years: None More than 2 years: 50% There shall be no maximum amount of unused sick leave eligible for cash compensation subject to the foregoing schedule. XIV. BEREAVEMENT LEAVE An employee shall be granted a leave without loss of pay in case of death of a member of the employee’s immediate family. Such leave is designated as bereavement leave. Up to five (5) days leave without loss of pay shall be granted for the death of a member of the employee’s immediate family. Immediate family as used in this section is defined as the employee’s spouse, child, foster child, grandchild, stepparent, legal guardian, stepchild, parent, brother, sister, grandparent, grandparent-in-law, mother-in-law, father-in-law or: A. Any other relative by blood or marriage who is a member of the employee’s household. (Employees may be required to submit proof that the deceased relative was a member of the employee’s household prior to the time of death.) B. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative’s death, the employee’s presence is required to handle funeral arrangements and/or matters of estate. In addition, bereavement leave may be granted on a case-by-case basis under other circumstances at the discretion of the City Manager or designee when it is in the best interest of the City to do so. Time off beyond these parameters shall be charged to any type of available leave. ATTACHMENT 11 - Page 11 of 30 9 XV. SCHOOL ACTIVITY LEAVE Pursuant to California Labor Code Sections 230.7 and 230.8, parents, guardians and grandparents having custody, of school-age children shall be allowed leave from their jobs, with or without pay, as may be necessary to participate in school activities such as parent-teacher conferences, disciplinary matters, school programs and related events with their children. Such leave is limited to forty (40) hours per school year, at a maximum of eight (8) hours per month. Employees must give reasonable advance notice to the employer to permit work coverage, and may be required to provide documentation from the school that the employee participated in the activity on the specific date and time. Leave properly requested in advance shall not be denied. XVI. JURY DUTY LEAVE Regular and probationary employees who are summoned to serve on jury duty in any court in this State of the United States, or any administrative board of tribunals, shall be entitled to a leave of absence with pay while serving. Employees may keep fees and fees for mileage received while serving. Employees must return to work if not required to attend jury duty on a particular day. An employee who is release from jury duty with four (4) hours or more remaining in his or her normal work day shall report to supervisor. Reporting back means that the employee has contacted his/her supervisor via a phone call (not a voicemail message), text, or email, and received a response back from the supervisor. An employee may be required to show proof of attendance to serve on jury duty. XVII. DONATION OF BLOOD LEAVE The City shall grant each employee in the unit of representation reasonable time off for the purpose of making a donation of blood in connection with any City-sponsored blood drive. No charge will be made against vacation, sick or any other type of leave when such absence is approved in advance by the employee’s supervisor/Department Head. XVIII. FAMILY CARE LEAVE (SEE THE CITY’S PERSONNEL RULES AND REGULATIONS) XIX. ON-THE-JOB INJURY LEAVE Whenever an employee is compelled to be absent from active duty due to an injury disability arising out of and in the course of employment, such employee shall be entitled to receive an On-the-Job Injury Leave With Pay for up to the first three (3) consecutive working days of such absence. The granting of such leave shall be conditioned upon the following: ATTACHMENT 11 - Page 12 of 30 10 A. The absence is at the discretion of a licensed medical physician or other designated health care professional. B. Supervisory personnel have been properly notified of such injury or disability and an on-the-job injury report has been properly completed and submitted. C. The injury occurred while the employee was performing work duties on the job. Whenever the On-the-Job Injury Leave extends beyond the first three (3) working days, the employee will be allowed to use accrued leave to supplement the Workers’ Compensation allowance to achieve the equivalent of 100% of his/her salary. XX. COMPENSATION FOR JOB CONNECTED ILLNESS OR INJURY In accordance with Workers’ Compensation laws, the City provides protection for employees in the event of on-the-job injuries. If an employee is injured on the job, the injury must be reported immediately to the supervisor – no matter how minor it seems. If necessary, the employee should receive first aid or medical treatment. Detailed instructions shall be given to the employee to initiate a Workers’ Compensation claim as necessary. The Personnel Officer or designee shall assure that required forms are completed in a timely manner. XXI. NON-WORK RELATED DISABILITY LEAVE If an employee is compelled to be absent from active duty due to a non-work-related disability or accident, the City shall grant a leave of absence in accordance with State disability laws. The City provides short-term and long-term disability insurance coverage to assist an individual when this situation arises. XXII. MILITARY LEAVE Military leave shall be granted in accordance with the provisions of State and Federal Law. All employees applying for military leave shall give the Department Head, within the limits of military regulations, an opportunity to determine when such leave shall be taken. Employees may use all available accrued time except for sick time to cover any regularly- scheduled work hours that occur during said leave. XXIII. LEAVE OF ABSENCE WITHOUT PAY REQUESTED BY AN EMPLOYEE The Personnel Officer or designee, upon recommendation of the Department Head, may grant a leave of absence without pay. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request. All requests shall be evaluated on the basis of personal need, duration and work requirements. Any leave of absence without pay lasting more than fourteen (14) calendar days shall preclude an employee from accruing leave time and other benefits after the 14th day. ATTACHMENT 11 - Page 13 of 30 11 XXIV. ADMINISTRATIVE LEAVE All employees designated as Management shall accrue eighty (80) hours additional leave per year as compensation for hours worked over and above the normal work schedule. No more than sixty-four (64) hours may be carried over at any time into a new fiscal year. City will pay full accrued amount of Administrative Leave at separation. Administrative leave may be taken at any time on approval of the appointing authority. Management employees may cash out up to seventy (70) hours each year, at the request of the employee. Management employees shall have the option of cashing out Administrative Leave in December and in June of each year, not to exceed seventy (70) hours, in any fiscal year; and/or carry over up to sixty-four (64) hours of Administrative Leave at the end of the Fiscal Year, provided no more than sixty-four (64) hours are carried at any time. For payout at separation, see Appendix A, Payout at Separation of Employment. XXV. UNAUTHORIZED ABSENCE A City employee who without prior authorization is absent or fails to discharge regularly assigned duties for a period of twenty-four (24) consecutive work hours shall be considered to have abandoned the job and may be subject to disciplinary action, including discharge. XXVI. HOLIDAYS All City employees shall have the following holidays with pay and shall not be required to work on such holidays except as hereinafter provided: A. January 1st (New Year’s Day) B. Third Monday in January (Martin Luther King, Jr. Day) C. Third Monday in February (Washington’s Birthday) D. Last Monday in May (Memorial Day) E. July 4th (Independence Day) F. First Monday in September (Labor Day) G. November 11th (Veteran’s Day) H. Fourth Thursday in November (Thanksgiving Day) I. The day following Thanksgiving Day J. December 24th (Christmas Eve) K. December 25th (Christmas Day) L. December 31st (New Year’s Eve Day) M. Floating Holiday (20 hours) Whenever a holiday falls on a Sunday not scheduled as a regular work day, the following Monday shall be observed as the holiday. Whenever a holiday falls on a Saturday not scheduled as a regular work day, the City will recognize the holiday on a case by case basis and observe it either on the Friday before the holiday or the Monday after the holiday, based on the needs of the community. The determination of the holiday observance will be made when the City issues the master holiday schedule each year. The exception to this is as outlined in the City Hall Holiday Closure Schedule. ATTACHMENT 11 - Page 14 of 30 12 Employees on a 9/80 schedule will be able to bank holiday hours for those holidays that occur on their flex day off. The following shall apply to the use of Holiday banked hours: i. Banked hours will be capped at twenty-four (24). ii. Hours banked are not compensable – they cannot be cashed out. iii. Banked hours must be used before any other kind of leave, except for sick leave. iv. Employees will be strongly encouraged to use banked hours within a reasonable period of time, preferably by the end of each fiscal year. An employee must have been paid for the entire amount of the regularly scheduled hours of the days immediately prior to and following a City holiday in order to be paid holiday pay. A. City Hall Holiday Closure Schedule: City Hall shall be closed from Christmas Eve through New Year’s Day. Year 1 City Hall closed 12/24/21 – 1/2/22 Employees able to use leave time to cover 12/29 and 12/30 2021; 12/24=12/24, 12/25=12/27, 12/31=12/31, and 1/1/22=12/28/21. Year 2 City Hall closed 12/24/22 – 1/2/23 Employees able to use leave time to cover 12/29 and 12/30 2022; 12/24=12/26, 12/25=12/27, 12/31=12/28, and 1/1/23=1/2/23. Year 3 City Hall closed 12/23/23 – 1/1/24 Employees able to use leave time to cover 12/28 and 12/29 2023; 12/24=12/26, 12/25=12/25, 12/31=12/27, and 1/1/24=1/1/24. Certain offices will remain open and certain employees will be required to work to provide essential services in the same manner as was done with Furloughs. Employees shall use appropriate accrued paid leave (Management Leave, Personal Necessity Leave, Holiday Bank or Vacation Leave, Floating Holiday, not Sick Leave – except for Personal Necessity Leave), or leave without pay to cover the closed days that would otherwise be work days from the day after the Christmas Day holiday through the day before the New Year’s Eve holiday. XXVII. FLOATING HOLIDAY Probationary and regular full-time employee shall be credited with a total of twenty (20) hours of compensated time off on July 1st of each year. The time(s) which the employee may elect to use this leave shall be arranged with and approved by the employee’s supervisor. The floating holiday hours must be used prior to June 30th or shall be forfeited. Employees hired on July 1st through September 30th receive twenty (20) hours of floating holiday, employees hired on October 1st through December 31st receive fifteen (15) hours of floating holiday, employees hired on January 1st through March 31st receive ten ATTACHMENT 11 - Page 15 of 30 13 (10) hours of floating holiday, and employees hired on April 1st through June 30th receive no floating holiday. XXVIII. MEDICAL, VISION, DENTAL INSURANCE AND COBRA The City provides medical, vision and dental insurance for City employees. The insurance becomes effective the first day of the month following the date of hire. A. Medical Insurance – CalPERS The City provides active employees in the bargaining unit up to the highest CalPERS HMO premium in each coverage category (E, E+1 or E+Family). If the plan the employee elects cost less than the highest HMO for his/her category, the employee’s premiums are fully paid by the City and the employee does not receive the difference between the highest HMO amount and the cost of the plan he/she selects. If the plan the employee selects costs more than the highest HMO for his/her category, the difference is paid by the employee through pre-tax payroll deduction. The City’s “total” contribution is calculated by adding the cost of the City’s dental insurance and vision insurance premiums to the highest HMO medical premium, in each coverage category. Together this is the “Highest HMO Amount”. The Highest HMO Amount will be compared to the Highest HMO Amount for the previous year by coverage type (E, E+1 or E+Family). Due to rate changes, the new Highest HMO premium may be a different medical plan from a different health insurance carrier. Effective January 1, 2020, the City’s total contribution will decrease to 60% of the increase. If the new Highest HMO Amount is the same or less than the previous year’s total, the City’s total contribution will remain the same. B. Opting out of Medical Insurance The City shall allow employees who show proof of group medical insurance coverage provided by a spouse, to opt out of the City’s medical insurance coverage. The City shall provide to employees who wish to opt out of medical insurance coverage and meet the above criteria, an “opting out” amount of $325 per month. Employees must remain enrolled in the City’s dental and vision plans. These premiums will be paid for by the City. C. Vision Insurance – Vision Service Plan D. Dental Insurance – Aetna Effective January 1, 2015, the maximum allowable benefits under the dental insurance policy will increase from $1,000 to $2,000. E. COBRA ATTACHMENT 11 - Page 16 of 30 14 The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires that the group health plans provide employees and their dependents the opportunity to continue health care coverage under the plan in certain circumstances where coverage under the group health plan would otherwise terminate. While the City must make continued health coverage available, it can charge qualified beneficiaries up to 102% of the cost of coverage if continuation of benefits under the group plan is desired. This coverage is currently administered by a third party. F. Health Benefits While on Disability Leave of Absence Whenever an employee is absent from work due to a physical or psychological injury or illness, the City shall maintain the employee’s coverage under the City’s group health plan on the same conditions as coverage would have been provided if the employee has been employed during the leave period, for a period not to exceed twelve (12) continuous months. XXIX. IRS CODE SECTION 125 PLAN The City shall set up an Employees’ Benefit Package, under IRS Code Section 125, to pay for medical, dental and vision premiums. The City shall provide to active employees in the bargaining unit a basic employee contribution amount equal to the PEMCHA minimum contribution amount and a cafeteria amount, which added together equals the contribution amount as specific in Section XXVIII. Employees shall have the ability to elect which medical carrier to enroll with. Dental and vision insurance coverage shall also be part of the active employees’ benefit package. The City will provide employees the opportunity to participate on a voluntary basis in a Dependent Care Assistance Program (Section 129) under Internal Revenue Code Section 125, which allows employees to redirect part of their salary, before it is taxed, to be used for child, elderly and dependent care and eligible medical expenses. XXX. RETIREE HEALTH SAVINGS ACCOUNT Employees shall make mandatory contributions to the retiree health savings plan establish through ICMA-RC. Contributions are based on the schedule below. Years of Service Bi-Weekly Contribution 0-5 $15.00 6-10 $20.00 11-15 $25.00 15+ $30.00 At the time of separation, see Appendix A, Payout at Separation of Employment. XXXI. LIFE INSURANCE ATTACHMENT 11 - Page 17 of 30 15 The value of life insurance coverage for each management employee is equal to one and one-half times the annual salary, plus $20,000. XXXII. CALPERS LONG TERM CARE This program is periodically offered through CalPERS at the sole expense of the employee. XXXIII. PRE-PAID LEGAL SERVICES The City will offer this benefit at the sole expense of the employee. XXXIV. COLLEGE SAVINGS PROGRAM (529 PLAN) The City will offer this benefit at the sole expense of the employee. XXXV. RETIRING EMPLOYEE RECOGNITION PROGRAM The Retiring Employee Recognition Program provides for a salary incentive for long-term City service. The guidelines and definitions for this program are detailed in Administrative Policy No. 223, Retiring Employees Recognition Program (Incentive for Long-Term City Services). Employees hired on or after July 1, 2009, are not eligible to participate in this program. XXXVI. RETIREMENT PLAN All full-time employees automatically become a member of the Orange County Employees Retirement System (OCERS). The City shall pay 100% of the management employee’s share of the retirement contribution. Effective September 25, 2003, the employees of the bargaining unit received an enhanced benefit formula of 2.7% @ age 55 based on the three (3) highest years of service. This enhanced benefit formula will be applicable to all years of services. The employees of the bargaining unit will contribute 5.01% of base salary as a payroll deduction towards the cost of the enhanced retirement benefit. Effective July 1, 2012, each employee shall pay 50% of the employee contribution that was being paid on behalf of the employee by the City prior to July 1, 2012. Effective July 1, 2013, each employee shall pay the full employee contribution to retirement and the City will no longer pay any portion of the employee’s contribution to retirement. The intent of these changes is to have employee’s paying the employee contribution to retirement and the City paying the employer contribution to retirement. The changes are being phased in two (2) years with the first change taking effect on July 1, 2012, and the second change taking effect on July 1, 2013. Effective January 1, 2012, any new employees hired on or after January 1, 2012, shall pay the full employee contribution to retirement with no payment of the employee’s contribution by the City. ATTACHMENT 11 - Page 18 of 30 16 Effective on or about July 1, 2012, the City shall implement a second tier of retirement formula (2% @ 57). This second tier retirement formula shall apply to all employees hired on or after the date the second tier formula becomes effective. In accordance with the 2012 Pension Reform Act, effective January 1, 2013, the City shall implement a third retirement formula which shall apply to new employees who become new members, as defined by the Pension Reform Act, of the Orange County Employees Retirement System, on or after January 1, 2013. Effective January 1, 2015, employees that are new to public service may choose between two (2) retirement plan options: 1. The Orange County Employees Retirement System’s 2.5% @ 67 defined benefit retirement formula. or 2. Hybrid Plan: The Orange County Employees Retirement System’s 1.62% @ 65 defined benefit formula combined with a 401(a) defined contribution retirement plan. Employees who choose the Hybrid Plan may make voluntary and irrevocable e contributions, including leave payouts, to the 401(a) defined contribution retirement plan. The City will match an employee’s contribution to the 401(a) defriend contribution plan up to one (1%) of the employee’s base salary. Eligible employees have thirty (30) days from the date of hire to elect the 2.5% @ 67 defined benefit retirement formula or the 1.62% @ 65 Hybrid Plan. In the event an eligible employee does not make an election during the thirty (30) day period, it will be deemed that the employee elected the 2.5% @ 67 defined benefit retirement formula. XXXVII. 401(a) PROGRAM The City will establish and administer a 401(a) program through ICMA subject to the provisions allowable under current regulations for this type of program. The City shall make the necessary changes to the 401(a) plan document and any and all applicable City policies to reflect the payout provisions noted in Appendix A, Payout at Separation of Employment. XXXVIII. SHORT/LONG-TERM DISABILITY INSURANCE Eligible employees shall receive short and long-term disability coverage or income protection of up to two-thirds of salary during disability periods due to non-job related injury or illness up to a maximum percentage of salary. XXXIX. ACTING STATUS Shall be the temporary assignment of a regular or probationary employee to a higher level classification to fill a vacant position or to provide a replacement for an employee who remains on a leave of absence. Employees given an acting assignment for fourteen (14) calendar days or more shall receive acting status pay equivalent to the maximum salary rate for that position such that the minimum adjustment would be least 5% above the ATTACHMENT 11 - Page 19 of 30 17 employee’s current salary with the approval of the Department Head and the Human Resources Manager. Acting status shall be retroactive to the first day and subject to no additional benefits. An Acting Appointment shall generally be less than twelve (12) months duration and generally only last for the duration of the recruitment process. Extensions beyond twelve (12) months shall be subject to the approval of the City Manager or designee. If the position or the employee is one that falls under representation by MPEA, the City shall inform MPEA of the extension and the reasons for extension. XL. RECLASSIFICATION OF POSITION Whenever a position is reclassified which is currently occupied by an incumbent who is satisfactorily performing the duties of the proposed position, the City shall place that incumbent in the reclassified position, without the need to undertake a recruitment. Such reclassifications shall not result in demotion. A reclassification may occur when the essential duties of a position change due to new technology, new regulations or laws, reorganization within the City, or other compelling reasons that increase to a higher level the duties performed by the position. The City shall notify the Association whenever a reclassification is to occur to allow the Association to request to meet and confer over the impact and salary of the position. Reclassification of an employee in a reclassified position may occur, at the City’s discretion, if s/he has been satisfactorily performing the duties of the position for at least six (6) months, as evaluated by the Department Head. Out-of-Class grievances that result in position reclassifications shall also result in the reclassification of the employee, provided s/he has been satisfactorily performing the duties of the position for at least six (6) months, as evaluated by the Department Head. XLI. PROMOTIONS, TRANSFERS AND VOLUNTARY DEMOTIONS A. Promotions Promotion refers to the movement of an employee from a lower level position in one class to another class imposing higher duties and responsibilities, requiring higher qualifications and providing a higher maximum rate of pay. Insofar as practical and consistent with the best interest of the City, as determined by the Personnel Officer or designee, vacancies shall be filled by promotion from within whenever qualified employees exist. Promotion-only classes will be establish by the Personnel Officer or designee in consideration of input from the Department Heads. i. Requirements for Promotional Candidates Only regular employees who meet the requirements set forth in the Classification Plan and who received a satisfactory overall rating at the time of their last performance evaluation may compete in promotional opportunities. Any ATTACHMENT 11 - Page 20 of 30 18 employee who wishes to apply for promotional opportunity must also have completed at least six (6) months in their present position. ii. Rejection Following Promotion An employee rejected during or at the conclusion of the probationary period following promotional appointment shall be reinstated to the position from which he/she was promoted, or comparable position or class from which he/she was promoted, and shall receive credit for time served in the promotional position unless charges are filed and the employee is discharged in the manner provided for in the rules and regulations. B. Transfers A transfer occurs when an employee changes positions, which are in the same classification having the same maximum salary and requiring substantially the same qualifications. This may or may not involve a change of an employee’s place of employment from one department to another. i. Conditions for Transfer An employee, who does not possess the minimum qualifications for an open position, shall not be transferred to that position. A qualified employee may be transferred, provided the employee’s supervisor, the new supervisor and the Personnel Officer or designee have approved the transfer. ii. Employee Requested Transfers New employees, who have completed their probationary period in their current positions, may apply for a transfer. All other employees, who have worked a minimum of six (6) months in their current position, may apply for a transfer. A request may be submitted only when a vacancy exists. The employee’s request for transfer will be considered on the basis of the employee’s qualifications for the vacant position, the employee’s best interest, and the best interest of the City. Requests for transfers must be received according to deadlines established by the Personnel Officers or designee. iii. Employer Initiated Transfers The City of San Juan Capistrano reserves the right to transfer its employees from one position to another, or one department to another, if the transfer is necessary for the purpose of economy or efficiency. iv. Job Transfer Opportunities The City shall consider lateral transfers and promotional opportunities to vacant positions within the same or similar job class. The employee requesting the transfer must have had a “satisfactory” rating on their last evaluation and meet ATTACHMENT 11 - Page 21 of 30 19 the minimum qualifications for the position. The City would have no obligation to hire any of the applicants for transfer. C. Voluntary Demotion A regular employee may request a voluntary demotion to a vacant position in a class with a lower maximum salary rate provided the employee possesses the qualifications of that class. Such requests must be filed with the Personnel Officer and require approval of the current Department Head and that of the Department Head of the vacant position. XLII. LAYOFFS AND RE-EMPLOYMENT A. Conditions for Layoff The City Manager, with the concurrence of the City Council, may abolish any position, because of material change in duties and organization, or shortage of work or funds. The employee holding such position or employment may be laid off without disciplinary action and without the right of appeal. No regular employee shall be laid off until all temporary and probationary employees holding positions in the same class in the department are first laid off. Only those employees in the department assigned to the class in which the position is to be abolished shall be involved in this layoff procedure. B. Notice of Layoff The Association and employees to be laid off shall be given at least fourteen (14) calendar days’ notice. C. Order of Layoff 1. Within the classification, employees will be ranked by seniority with the most senior employee given the highest ranking and the next most senior employee given the next highest ranking and so forth. For the purpose of this section, seniority shall be determined as total number of years of full-time employment with the City of San Juan Capistrano. This category is given a weight of 30%. 2. Within the classification, employees will also be ranked by performance, based upon performance evaluations, official records, and/or qualified testing procedures where applicable. The employee within the classification with the highest performance rating shall be given the highest ranking and the next most competent employee shall be given the next highest ranking, and so forth. This category is given a weight of 40%. a. To establish the performance ranking, each employee performance evaluation must be rated. A rating of 1 to 5 on the overall evaluation rating is assigned accordingly: ATTACHMENT 11 - Page 22 of 30 20 Excellent = 5 Above Standard = 4 Meets Standards = 3 Needs Improvement = 2 Unsatisfactory = 1 3. Within the classification, employees will also be ranked by skill set, based upon education, licenses, and certificates obtained, which increase an employee’s overall value to the organization. The employee with the greatest skill set within the classification shall be given the highest ranking and the employee with the next highest skills set level shall be given the next highest ranking, and so forth. This category will be given a weight of 30%. To establish the ranking for skill set, the following point system shall be applied: Education 1. PhD. = 4 points 2. Master’s Degree = 3 points 3. Bachelor’s Degree = 2 points 4. Associate of Arts Degree = 1 points A degree must be directly related to the position in order for it to be awarded a point value. Licenses Each professional license = 1 point Certificates Each certificate = .5 point Certificates issued upon completion of a test conducted by a sanctioning body such as a governmental, professional, or academic organization, are considered valid certificates. Training certificates that indicate that an employee participated in a training course or seminar are not awarded any point value; however, they would be incorporated into the performance evaluation. D. Layoff Procedure The Department Head will total the point values of the three (3) categories (seniority, performance, and skill set) for each employee within the classification to determine the order of layoff. Employees will be laid off in order of the numerical ranking, that is, an employee with a lower ranking would be laid off before an employee with higher ranking. E. Re-employment List ATTACHMENT 11 - Page 23 of 30 21 The names of persons laid off in accordance with these rules shall be entered on a re- employment list for one (1) year, except that persons appointed to regular positions shall, upon such appointment be dropped form the list. When a vacancy occurs in the subject class, the appointment authority shall consider the former employees from the re-employment list. It is the responsibility of the employee on a re-employment list to keep the City informed of his/her current address and telephone number, and availability of work. F. Disability Separation In the event an employee is unable to perform the essential functions of his or her position due to an injury or illness, the City may provide up to twelve (12) continues months of leave or modified duty. The City will continue to make the full contribution for health, dental, and vision premiums during any or all of the twelve (12) months that the employee is on unpaid leave. If, after twelve (12) continuous months, the employee is unable to return to his/her regular duties the following will apply. To the extent permitted under Federal and State law, an employee unable to perform the essential functions of his/her position, with or without reasonable accommodation, as a result of physical or psychological illness or injury shall: 1. Be separated from employment. Employees who are separated pursuant to this section shall be accorded procedural due process (i.e., notice and an opportunity to respond to the separation) in accordance with the appeal procedures for disciplinary actions outlined in the Personnel Rules and Regulations. or 2. Be offered the opportunity to resign from his/her position with the City of San Juan Capistrano and place on a re-employment list for a period not to exceed one (1) year. Any employee returning to work shall provide the Personnel Officer or designee verification from a medical practitioner that he/she can perform the essential functions of his/her position, with or without accommodation. If during the period in which the employee is on the re-employment list, the employee is physically and/or psychologically able to resume the duties of his/her previous position and there is a vacant position in his/her classification, the employee will be entitled to return to that position. Separation from employment under this section does not preclude the City or employee from applying for a disability retirement. XLIII. GRIEVANCE PROCEDURE A. Matters Subject to Grievance Procedures A grievance shall be initiated through an informal first step when the employee notifies the supervisor verbally of his/her contention that the City has violated or misapplied a ATTACHMENT 11 - Page 24 of 30 22 specific obligation expressed and/or written in the Personnel Rules and Regulations of the City. Personnel Division staff is available to assist Department Heads in such matters as the interpretation of Rules, documentation procedures and preparation of notices as requested. B. Notification of Grievance The second step in the grievance process shall be a written notice filed in a timely manner, on a form provided by the City which shall include at a minimum: 1. Nature of the grievance; 2. Date when the incident occurred; 3. Description of the incident; 4. Rule violated; and, 5. Specific remedy sought by the employee. C. Steps in the Grievance Process First Step Within ten (10) working days after the occurrence of the incident involved in the grievance, the employee may initiate the grievance process by discussing the matter informally with his/her immediate supervisor. An attempt shall be made to resolve the grievance between the employee and the immediate supervisor. The supervisor shall deliver an oral or written response within ten (10) working days after submission of the grievance. Second Step If the grievance is not satisfactorily resolved in the first step, the grievance may be submitted in writing to the supervisor’s supervisor, if any, within the department organization within ten (10) working days after the immediate supervisor’s answer is received by the employee. After an attempt to resolve the grievance between the employee and his/her designated representative, if any, the intermediate supervisor shall deliver a written answer within ten (10) working days after submission of the grievance. If there is no intermediate supervisor, the grievance shall go directly to the Department Head. Third Step If the grievance is not satisfactorily resolved in the first and second steps, it shall be submitted in writing to the employee’s Department Head within ten (10) working days after the intermediate supervisor’s answer is received by the employee. The Department Head shall meet with the employee and his/her designated representative, if any, within ten (10) working days after submission of the grievance to the Department Head. The Department Head shall review the grievance and may affirm, reverse, or modify the disposition made at the first and second steps and shall deliver a written answer to the employee within ten (10) working days after said meeting. D. Appeal of Decision ATTACHMENT 11 - Page 25 of 30 23 If the grievance is not satisfactorily resolved, the employee may appeal the decision of the Department Head to the City Manager. At the option of the employee, the grievance may be submitted: i. Directly to the City Managers, or ii. To an impartial arbitrator who will provide an advisory opinion to the City Manager prior to the consideration of the grievance by the City Manager, or iii. To a mediator from the State Mediation and Conciliation Services who will provide finding and recommendations to the City Manager prior to consideration of the grievance by the City Manager. When the appeal is submitted to the City Manager, it shall specify whether the employee desires to have the appeal considered directly by the City Managers or reviewed first by an impartial arbitrator or state mediator. Such submission must occur within ten (10) working days after the Department Head’s written answer is received. E. Advisory Arbitration An employee may elect to use an impartial arbitrator to provide an advisory opinion to the City Manager prior to the consideration of the grievance by the City Manager. After a hearing on the merits of the grievance and considering evidence from all parties concerned, the impartial arbitrator shall submit a written advisory opinion to the City Manager. Within ten (10) working days after receipt of the written advisory opinion of the impartial arbitrator, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver a written decision to the employee within ten (10) working days after said meeting. The City Manager’s decision shall conclude the administrative appeals procedure. If an employee elects to use an impartial arbitrator, the arbitrator shall be selected jointly by the employee and his/her designated representative, if any, and the City. The cost of the arbitrator, if any, shall be born equally be the employee and the City. F. State Mediation An employee may elect to use a certified mediator from the State Mediation and Conciliation Services to provide finding and recommendations to the City Manager prior to the consideration of the grievance by the City Manager. After a hearing on the merits of the grievance and considering evidence from all parties concerned, the certified mediator shall submit a written summary of his/her finding and recommendations to the City Manager. Within ten (10) working days after receipt of the written summary of findings, and recommendations from the certified mediator, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons ATTACHMENT 11 - Page 26 of 30 24 to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver a written decision to the employee within ten (10) working days after said meeting. The City Manager’s decision shall concluded the administrative appeals procedure. If an employee elects to use a certified mediator from the State Mediation and Conciliation Service, the certified mediator shall be selected jointly by the employee and his/her designated representative, if any, and the City. The cost of the certified mediator, if any, shall be born equally by the employee and the City. G. City Manager An employee may elect to submit the grievance directly to the City Manager for final and binding decision. Within ten (10) working days after submission of the grievance to the City Manager, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver written decision to the employee within ten (10) working days after said meeting, and such decision shall conclude the administrative appeals procedure. H. Extension of Time Any or all of the time limitations mentioned above with reference to filing and response times may be extended by mutual agreement between the employee and the City. XLIV. FAIR EMPLOYMENT PRACTICE The City of San Juan Capistrano assures any technique or procedure used in recruitment and selection of employees shall be designed to measure only the job-related qualifications of applicants. No recruitment or selection technique shall be used which, in the opinion of the Personnel Officer or designee, is not justifiably linked to successful job performance. It is the policy of the City that no technique, procedure or policy in recruitment and selection shall be discriminatory to any group protected by state or federal legislation. XLV. NON-DISCRIMINATION POLICY The City shall offer equal employment to all persons without regard to race, creed, color, sex, age, national origin, religion, physical or mental handicap or veterans’ status, or any other legally-protect class. No applicant is to be discriminated against or given preference because of these factors. This policy is intended to apply to recruiting, hiring, promotions, upgrading, layoffs, compensation, benefits, termination and all other privileges, terms and conditions of employment. XLVI. CONTINUATION OF BENEFITS ATTACHMENT 11 - Page 27 of 30 25 All fringe benefits previously granted and currently in effect to represented employees shall remain in full force and effect, unless modified by the provisions of this agreement. XLVII. SEPARABILITY The provision contained in this agreement have been bargained for and agreed to independently, and no particular clause, condition, or agreement is contingent or dependent upon any other; therefore, should any such clause, condition, or agreement be held to be void or unenforceable, the remainder of the terms and conditions of the agreement shall remain in full force and effect. XLVIII. PERSONNEL RULES Proposed changes to the Personnel Rules submitted during the negotiation of the agreement are incorporated into the revised Rules. Such proposed changes are subject to meet and confer, to include impasse, mediation and fact-finding, if necessary. Any such resulting changes to the Personnel Rules and Regulations shall be incorporated into the Memorandum of Understanding by amendment where appropriate. XLIX. TELEWORKING ONE-TIME PAYMENT MPEA represented employees who are employed by the City on July 1, 2021 shall receive a one-time sum of $300 (three-hundred dollars) in recognition of telework related to the closure of City Hall due to the COVID-19 pandemic. This payment shall be included on the July 9, 2021 paycheck and will be treated as taxable wages. This agreement was entered into on the 18th day of May, 2021. SAN JUAN CAPISTRANO MUNICIPAL EMPLOYEE RELATIONS OFFICER _______________________________ Benjamin Siegel City Manager SAN JUAN CAPISTRANO MANAGEMENT AND PROFESSIONAL EMPLOYEES ASSOCIATION ___________________________ Sergio Klotz MPEA President ATTACHMENT 11 - Page 28 of 30 26 ATTEST: CITY OF SAN JUAN CAPISTRANO ___________________________ Maria Morris, City Clerk Approved by the City Council of the City of San Juan Capistrano on this 18th day of May, 2021. ATTACHMENT 11 - Page 29 of 30 MAXIMUM CONTRIBUTION (ANNUAL) AGE GROUP -- 59 AND UP 401A RHS CASH Longevity Pay (If Applicable)100% Sick Leave 75%25% Vacation 50%50% Management Leave 50%50% Severance (if Applicable)100% After 401a/457 CAP IS MET 25%75% MAXIMUM CONTRIBUTION (ANNUAL) AGE GROUP -- 45 to 58 401A RHS CASH Longevity Pay (If Applicable)100% Sick Leave 50%50% Vacation 50%50% Management Leave 50%50% Severance (if Applicable)75%25% After 401a CAP IS MET 25%75% MAXIMUM CONTRIBUTION (ANNUAL) AGE GROUP -- 31 to 44 401A RHS CASH Longevity Pay (If Applicable)50%25%25% Sick Leave 50%50% Vacation 25%75% Management Leave 50%50% Severance (if Applicable)100% After 401a CAP IS MET 25%75% MAXIMUM CONTRIBUTION (ANNUAL) AGE GROUP -- 30 and below 401A RHS CASH Longevity Pay (If Applicable)N/A Sick Leave 25%75% Vacation 25%75% Management Leave 50%50% Severance (if Applicable)25%75% After 401a CAP IS MET 0%100% APPENDIX A Per IRS For employees age 31 to 44 at separation, 50% of your longevity pay (if any); 25% of your vacation leave; 50% of your management leave; and 100% of severance (if any) shall be contributed to your new 401(a) account. If your mandatory contribution hits exceeds the 401(a) cap, then 25% of the amount above the cap shall be contributed to your RHS and 75% shall be paid out in cash, subject to applicable taxes. Then, 25% of longevity pay (if any) and 50% of your sick leave (at applicable cash out rate) shall be deposited into your RHS account. The remaining 25% of longevity pay, 50% of sick leave, 75% of vacation, and 50% of management leave shall be contributed to a 457 account and/or cash, subject to applicable taxes, at the employees discretion. PAYOUT VEHICLE Per IRS For employees age 30 and below at separation, 25% of your vacation leave; 50% of your management leave; and 25% of severance (if any) shall be contributed to your new 401(a) account. If your mandatory contribution exceeds the 401(a) cap, then the balance shall be paid out in cash, subject to applicable taxes. Then, 25% of your sick leave (at applicable cash out rate) shall be deposited into your RHS account, with all remaining sick leave (75%), vacation leave (75%), management leave (50%), and severance (75%) (if any) amounts being contributed to a 457 account and/or cash, subject to applicable taxes, at the employees discretion. PAYOUT VEHICLE Per IRS For employees age 59 and up at separation, 100% of your longevity pay (if any); 50% of your vacation and management leaves; and 100% of severance (if any) shall be contributed to your new 401(a) account. If your mandatory contribution exceeds the 401(a) cap, then 25% of the amount above the cap shall be contributed to your RHS and 75% shall be paid out in cash, subject to applicable taxes. Then, 75% of your sick leave (at applicable cash out rate) shall be deposited into your RHS account, with the remaining 25% of sick leave, 50% of vacation leave, and 50% of management leave being contributed to a 457 account and/or cash, subject to applicable taxes, at the employees discretion. PAYOUT VEHICLE Per IRS For employees age 45 to 58 at separation, 100% of your longevity pay (if any); 50% of your vacation and management leaves; and 75% of severance (if any) shall be contributed to your new 401(a) account. If your mandatory contribution exceeds the 401(a) cap, then 25% of the amount above the cap shall be contributed to your RHS and 75% shall be paid out in cash, subject to applicable taxes. Then, 50% of your sick leave (at applicable cash out rate) shall be deposited into your RHS account, with the remaining 50% of sick leave, 50% of vacation leave, 50% of management leave, and 25% of severance (if any) being contributed to a 457 account and/or cash, subject to applicable taxes, at the employees discretion. PAYOUT VEHICLE ATTACHMENT 11 - Page 30 of 30 CITY OF SAN JUAN CAPISTRANO PERSONNEL RULES AND REGULATIONS REVISED May 2021 (Previously revised June 2018, December 2 0 1 2 ) ATTACHMENT 12 - Page 1 of 70 CITY OF SAN JUAN CAPISTRANO PERSONNEL RULES & REGULATIONS RULE 1 ADMINISTRATON OF PERSONNEL RULES AND REGULATIONS Section 1.01 Personnel Officer................................................................................. 2 1.02 Personnel Records .............................................................................. 2 1.03 Protection of Right to Privacy .............................................................. 3 RULE 2 DEFINITIONS ............................................................................................. 3 RULE 3 DEPARTMENT RULES .............................................................................. 7 RULE 4 FAIR EMPLOYMENT.................................................................................. 7 RULE 5 CLASSIFICATION PLAN ........................................................................... 8 Section 5.01 Nature and Contents of Plan ............................................................... 8 5.02 Amendment of Classification Plan ....................................................... 9 RULE 6 SALARY ADMINISTRATION ...................................................................... 9 Section 6.01 Preparation of the Pay Plan ................................................................. 9 6.02 Pay Plan Structure ............................................................................ 10 6.03 Entrance Rates on Initial Employment ............................................... 10 6.04 Pay for Temporary and Part-Time Work ............................................ 10 6.05 Pay for Probationary Employees ....................................................... 10 6.06 Pay Increases ................................................................................... 10 6.07 Pay Adjustment Upon Promotion ....................................................... 11 6.08 Pay Adjustment Upon Demotion ........................................................ 11 6.09 Pay Adjustment Upon Re-employment .............................................. 11 6.10 Special Merit Pay .............................................................................. 11 6.11 Recognition Bonus Pay ..................................................................... 11 6.12 Bilingual Pay ..................................................................................... 12 6.13 Acting Appointment Pay .................................................................... 13 6.14 Payroll Deductions ............................................................................ 13 6.15 Work Day and Work Week ................................................................ 13 6.16 Flextime ............................................................................................ 14 6.17 Management Flextime ....................................................................... 14 6.18 Overtime ........................................................................................... 14 6.19 Emergency Stand-By/Call out............................................................ 15 6.20 Work on a Holiday ............................................................................. 15 6.21 Flexible Staffing ................................................................................. 15 RULE 7 EMPLOYEE BENEFITS ............................................................................ 16 Section 7.01 Vacation Accrual and Use ................................................................. 16 7.02 Vacation Usage ................................................................................. 16 7.03 Vacation Benefits for Terminating Employees ................................... 16 ATTACHMENT 12 - Page 2 of 70 7.04 Holidays Occurring During Vacation .................................................. 17 7.05 Holidays ............................................................................................ 17 7.06 Floating Holiday ................................................................................ 18 7.07 Sick Leave......................................................................................... 18 7.08 Sick Leave Allowance ....................................................................... 18 7.09 When Sick Leave May Be Taken ....................................................... 19 7.10 Notification Of Illness by Employee ................................................... 19 7.11 Return from Sick Leave ..................................................................... 19 7.12 Sick Leave Payout Prior to Separation of Employment ...................... 20 7.13 Sick Leave Cash-Out Upon Separation of Employment .................... 20 OTHER LEAVES OF ABSENCE .............................................................. 21 7.14 Community Service Leave ................................................................. 21 7.15 Bereavement Leave .......................................................................... 21 7.16 Jury Duty Leave ................................................................................ 21 7.17 School Activity Leave ........................................................................ 22 7.18 Family and Medical Leave Policy ...................................................... 22 7.19 Military Leave .................................................................................... 29 7.20 Leave of Absence Without Pay .......................................................... 29 7.21 Administrative Leave ......................................................................... 29 7.22 Administrative Compensation ............................................................ 30 7.23 On-the-Job Injury Leave .................................................................... 30 7.24 Compensation for Job Connected Illness or Injury............................. 30 7.25 Non-Work Related Disability Leave ................................................... 31 7.26 Unauthorized Absence ...................................................................... 31 OTHER BENEFITS ................................................................................... 31 7.27 Medical, Life, Vision, and Dental Insurance ....................................... 31 7.28 COBRA ............................................................................................. 31 7.29 Retiring Employee Recognition Program ........................................... 32 7.30 Retirement Plan ................................................................................ 32 7.31 Short-Term/ Long-Term Disability Program ....................................... 32 7.32 Deferred Compensation Program ...................................................... 32 7.33 401(a) Deferred Compensation Program ........................................... 32 7.34 Educational Reimbursement ............................................................. 32 7.35 Ride Share Program .......................................................................... 33 7.36 Mileage Reimbursement.................................................................... 33 7.37 Auto Allowance ................................................................................. 33 7.38 Lunch and Break Periods .................................................................. 33 7.39 IRS Code Section 125 Plan ............................................................... 33 RULE 8 EMPLOYMENT PRACTICES ................................................................... 34 Section 8.01 Fair Employment Practice ................................................................. 34 8.02 Non-Discrimination Policy .................................................................. 34 8.03 Hiring Relatives ................................................................................. 34 8.04 Requisition and Sources of Recruitment ............................................ 34 8.05 Provisional Appointment .................................................................... 35 8.06 Job Announcements .......................................................................... 35 8.07 Application Forms.............................................................................. 35 8.08 Rejection of Application ..................................................................... 35 ATTACHMENT 12 - Page 3 of 70 8.09 Examinations ..................................................................................... 35 8.10 Promotional Examinations ................................................................. 36 8.11 Open Examinations ........................................................................... 36 8.12 Conduct of Examinations ................................................................... 36 8.13 Notification of Results ........................................................................ 36 8.14 Eligibility List ...................................................................................... 36 8.15 Appointment From Eligibility List ........................................................ 37 8.16 Re-Employment and Reinstatement .................................................. 37 8.17 Selection ........................................................................................... 37 8.18 Physical Examination ........................................................................ 37 8.19 Background Examination ................................................................... 38 8.20 Orientation......................................................................................... 38 8.21 Outside Employment ......................................................................... 38 8.22 Types of Appointments ...................................................................... 38 RULE 9 PROBATIONARY PERIOD ...................................................................... 40 Section 9.01 Regular Appointment Following Probationary Period ......................... 41 9.02 Rejection of Probationary Employee.................................................. 41 9.03 Performance Evaluation During Probationary Period ......................... 42 RULE 10 CHANGES OF EMPLOYMENT STATUS ................................................. 42 Section 10.01 Promotion ........................................................................................ 42 10.02 Promotion In-House ........................................................................ 42 10.03 Requirements for Promotional Candidates ...................................... 42 10.04 Rejection Following Promotion ........................................................ 42 10.05 Reclassification ............................................................................... 43 10.06 Transfers ......................................................................................... 43 10.07 Conditions for Transfer .................................................................... 43 10.08 Employee Requested Transfers ...................................................... 43 10.09 Employer Initiated Transfers ............................................................ 44 10.10 Voluntary Demotion ......................................................................... 44 10.11 Conditions for Layoff ....................................................................... 44 10.12 Notice of Layoff ............................................................................... 44 10.13 Order of Layoff ................................................................................ 45 10.14 Layoff Procedure ............................................................................. 45 10.15 Re-Employment List ........................................................................ 45 10.16 Termination - Resignation ............................................................... 45 10.17 Exit Interviews ................................................................................. 45 10.18 Performance Evaluation .................................................................. 45 10.19 Timing of Performance Evaluations ................................................. 46 RULE 11 DISCIPLINARY ACTIONS ........................................................................ 46 Section 11.01 Application ....................................................................................... 46 11.02 Types of Disciplinary Action ............................................................ 46 11.03 Causes for Disciplinary Action ......................................................... 47 11.04 Disciplinary Procedures ................................................................... 49 11.05 Notification of Decision .................................................................... 50 11.06 Appeal of Decision .......................................................................... 50 11.07 Temporary Absence With Pay ......................................................... 50 ATTACHMENT 12 - Page 4 of 70 RULE 12 GRIEVANCE PROCEDURE ..................................................................... 51 Section 12.01 Matters Subject to Grievance Procedures ....................................... 51 12.02 Notification of Grievance ................................................................. 51 12.03 Steps in the Grievance Process ...................................................... 51 12.04 Appeal of Decision .......................................................................... 52 12.05 Advisory Arbitration ......................................................................... 52 12.06 State Mediation ............................................................................... 53 12.07 City Manager ................................................................................... 53 12.08 Extension of Time ............................................................................ 54 RULE 13 SAFETY .................................................................................................... 54 Section 13.01 No Smoking in City Vehicles ........................................................... 54 RULE 14 HARASSMENT AND DISCRIMINATION PREVENTION .......................... 54 RULE 15 ATTENDANCE AND ABSENTEEISM ...................................................... 59 RULE 16 ALCOHOL AND DRUG ABUSE POLICY ................................................. 59 EXHIBIT A Drug Testing Procedure ......................................................................... 65 ATTACHMENT 12 - Page 5 of 70 1 ATTACHMENT 12 - Page 6 of 70 2 RULE 1 ADMINISTRATION OF PERSONNEL RULES AND REGULATIONS This manual contains statements of personnel rules and regulations. It is designed to provide the guidelines and procedures regarding personnel issues in the administration of the City of San Juan Capistrano personnel system. These written rules and regulations should increase understanding, eliminate the need for personal decisions on matters of City-wide policy and help assure uniformity throughout the organization. The rules and regulations encompassed in this manual are established for all employees as defined in Article 4, Title 2, Chapter 5 of the San Juan Capistrano Municipal Code. By departmental executive order, Department Heads shall have the authority to develop and adopt additional rules affecting their departments as necessary. Such departmental rules shall be supplementary to these rules, shall be consistent herewith and shall in every case be approved in writing by the City Manager prior to implementation. In the event of a conflict between what is stated in these Rules and an employee association Memorandum of Understanding (MOU) provision, the MOU provision shall govern. If an MOU is silent on any particular point and/or subject, then the Rules shall govern. This allows for a clear understanding regarding which document governs for a specific benefit or provision. The City acknowledges that there may be practices that exist in the absence of any express language to the contrary, and the City will address such practices as required by law. Section 1.01 Personnel Officer The City Manager shall act as Personnel Officer and shall administer the provisions of these rules. The City Manager may delegate the day-to-day administrative responsibilities of the Personnel Officer to any other officer or employee he/she shall so designate. The Personnel Officer as provided in the Municipal Code shall interpret and apply these rules and may prepare amendments as required. The Personnel Officer is authorized to establish administrative policies for the purpose of delineating day-to-day operating procedures with respect to general City administration. Section 1.02 Personnel Records The Personnel Office maintains the City’s official personnel file for each employee. This includes salary history, promotion, evaluations, leaves of absence, address and other information concerning an employee's status. ATTACHMENT 12 - Page 7 of 70 3 The City relies on the employee for information on changes in address, marital status or number of dependents. Any changes must be reported by the employee within 30 days of the effective date of the change to the Personnel Office so that records remain current. Every appointment, transfer, promotion, demotion, change in salary rate and/or any other temporary or permanent change in status of employee shall be noted on a Personnel Action Form and placed in the employee’s official personnel file in the Human Resources office. Any employee has the right to inspect his/her official City personnel file. If the file contains information that the employee does not agree with, the employee may prepare a separate written response and request that the Personnel Officer place the response in the file. The personnel record of any person employed by the City will be kept in accordance with the City’s records retention policy. Section 1.03 Protection of Right to Privacy A. Access by City Employees. Department Heads shall have access to specific information in an individual's official personnel record, which is necessary to the performance of their assigned City duties. In the event that an employee applies for a position outside the present department, the prospective Department Head shall have access to that employee's file. B. Access by Public. The following employment information shall be released to members of the public upon a written request from a member of the public in accordance with the Public Records Act: the individual's name, date of hire, and current position title and confirmation of employee's rate of pay. C. Access Required by Subpoena and Other Laws Personnel information contained in the City’s official personnel file must be released pursuant to a subpoena or in other circumstances where the City is required by law to release the information. Any questions concerning release of information under such circumstances or concerning records which may be subject to legal privilege shall be directed to the Personnel Officer or designee. RULE 2 DEFINITIONS A. General Definition All words and terms used in these rules and in any resolution or ordinance dealing with personnel policies, systems, or procedures shall have their ordinary meaning unless specifically defined below. ATTACHMENT 12 - Page 8 of 70 4 B. Specific Definition ● Allocation - The assignment of a position to an appropriate class in accordance with its duties and responsibilities. ● Appointing Authority - The City Manager pursuant to Ordinance No. 474. The City Manager may delegate appointing authority to the Assistant City Manager or Executives subject to review. ● At-Will – The employment status of an employee that indicates the appointment may end at any time, without advance notice or right of appeal, and the City is not required to show cause. ● Authorized Position – A position that has been approved and budgeted by the City Council. ● Benefited Part-Time Employee- An employee who regularly works less than thirty-five (35) hours per week and receives benefits, other than sick leave, as specifically set forth in these Personnel Rules and Regulations. ● Classification - A position or group of positions having duties and responsibilities sufficiently similar so that the same requirements as to education, experience, knowledge, and ability may be demanded of incumbents and so that the same schedule of compensation may be made to apply with equity to all. ● Confidential Employee - Employees designated as such by resolution of the City Council, who in the course of assigned duties have access to information relating to the City's administration of employer-employee relations or who assists a Department Head in the processing of confidential materials relating to the performance of employees within a department. Employees currently designated as confidential employees by the City Manager are those employees currently filling positions allocated to the following classifications: ADMINISTRATIVE COORDINATOR COMMUNITY SERVICES MANAGER BUILDING AND CODE ENFORCEMENT SERVICES MANAGER EXECUTIVE ASSISTANT HISTORIC PRESERVATION MANAGER PUBLIC WORKS MANAGER WATER ENGINEERING MANAGER WATER OPERATIONS MANAGER ALL PERSONNEL IN ADMINISTRATIVE SERVICES DEPARTMENT ALL PERSONNEL IN THE CITY MANAGER'S OFFICE INCLUDING CITY CLERK PERSONNEL ● Demotion - The appointment of an employee to a classification having a lower maximum salary range either as a result of a disciplinary action or at the request of the employee. ATTACHMENT 12 - Page 9 of 70 5 Voluntary Demotion - Means the appointment of an employee to a classification having a lower salary range at the request of the employee. A voluntary demotion shall be approved in advance and in writing by the Department Head and Personnel Officer. Salary placement of the employee shall be at the step in the new range that is closest to the step the employee is demoting from that does not result in a salary increase. Involuntary Demotion - Means the appointment of an employee to a classification having a lower salary range as the result of disciplinary action, or “bumping” in- lieu of layoff. ● Department Head - The head of an established department, ·having supervision of such department. ● Discharge Disciplinary action involuntarily separating a regular employee from the City. ● Eligibility List - A list of qualified individuals who have achieved minimum rank or score in an examination for employment, re- employment, reinstatement, promotion or transfer. ● Executive Employee - Employees designated as such by resolution of the City Council which are exempt from the disciplinary provisions of the Personnel Rules and Regulations. These positions are at-will and serve at the pleasure of the City Manager. ● Immediate Family - The employee's spouse, registered domestic partner, child, foster child, grandchild, stepparent, legal guardian, stepchild, parent, brother, sister, grandparent, mother-in-law and father-in-law, or any relative living in the immediate household of the employee. ● Layoff – Separation of an employee from employment with the City in the event, in the judgment of the City Manager, with the approval of the City Council, it becomes necessary to eliminate a position or multiple positions because of the economy or efficiency. ● Management - Employees designated as such by resolution of the City Council and designated in the Memorandum of Understanding of the Management and Professional Employees Association. ● Open Examination – Any recruitment and selection process which invites qualified applicants from the public at large as well as City employees. ● Part-Time Employee – An employee working less than 35 hours per week. The City will provide benefits to part-time employees only in accordance ATTACHMENT 12 - Page 10 of 70 6 with the law, or the City may grant additional benefits based on assignment. A part-time employee hired on or after July 1, 2018, shall be considered at-will, will not serve a probationary period, and can be removed from his or her position without “cause” or providing advance notice or right of appeal. A part-time employee hired on or after July 1, 2018, is not subject to the disciplinary process contained in these Personnel Rules and Regulations and only receives benefits that are explicitly stated as applying to the position, or as authorized by the Personnel Officer or designee. ● Performance Evaluation - Periodic job performance progress reports on all employees indicating strengths and weaknesses and plans for employee development. ● Probationary Employee - An employee who has not completed a probationary period of employment with the City and who is in an at-will status in the position. ● Promotion -The appointment of an employee to a classification with a higher maximum salary. ● Promotional Examination - An internal recruitment and selection process which invites only current City employees as applicants. ● Promotional Probationary Discharge – The involuntary removal of a promotional probationary employee from the promoted position. The affected employee moves back into his/her prior position at the grade and step he or she was at prior to the promotion. If a step increase would have occurred during the promotional probationary period, the employee who moves back into a prior position will be placed at that next step as if the promotion had not occurred. This action (promotional probationary discharge) does not require advance notice or “cause” and cannot be appealed. ● Provisional Appointment – A t y p e o f t e m p o r a r y a p p o i n t m e n t a s d e f i n e d i n t h e s e r u l e s . ● Reclassification - A change in the allocation of a position by raising it to a higher class, lowering it, or moving it to another class on the same level. ● Re-employment - The appointment of an employee who was laid off within the preceding twelve months to a position in the same classification as the former position. ● Regular Employee - A full-time employee in an authorized position who has successfully completed a probationary period of employment with the City. A part-time employee hired prior to July 1, 2018 that has passed a probationary period. ATTACHMENT 12 - Page 11 of 70 7 ● Reinstatement - The appointment of a probationary or regular employee within twelve months after resigning in good standing to a position in a comparable class. ● Resignation - The voluntary separation of an employee from employment with the City. ● Rules and Regulations - The Municipal Code Section 2-5.401 (Personnel System), these Personnel Rules and Regulations, and other rules, policies or procedures that may be set forth in the City Administrative Manual or Departmental rules and regulations. ● Suspension – A disciplinary action by the appointing authority to prevent an employee from working normal hours, thereby exempting the employee from compensation for those hours. ● Termination - The act of separation from employment for any reason other than retirement, discharge, or resignation. ● Transfer - The reassignment of an employee from one position to another position within the same classification or from one classification to another classification which has the same maximum salary and requires substantially the same qualifications. ● Work Period - Period of timing consisting of seven (7) consecutive 24- hours. ● Y-Rated Position - A position which is paid above the maximum of the salary range resulting in the incumbent's salary being frozen until adjustments to the salary range cause the incumbent's salary to fall within the range. RULE 3 DEPARTMENT RULES Department Heads shall have the authority to develop and to adopt by departmental executive order such additional personnel rules affecting their departments as shall be felt necessary. Such departmental rules shall be supplementary to these rules, shall be consistent herewith, and shall in every case be approved in writing by the City Manager prior to being put into effect. RULE 4 FAIR EMPLOYMENT It is the policy of the City of San Juan Capistrano to assure equal opportunity for all qualified employees and job applicants without regard to race, creed, color, sex, age, national origin, religion, physical or mental handicap, veterans' status, sexual orientation, pregnancy, child birth or related condition. Positive action will be taken to assure the fulfillment of this policy within the following: *Recruiting *Hiring *Promotions ATTACHMENT 12 - Page 12 of 70 8 *Upgrading *Layoffs *Compensation *Benefits *Termination *All other terms and conditions of employment Responsibility for monitoring compliance and implementing the City of San Juan Capistrano fair employment practices is assigned to the Personnel Officer or designee. RULE 5 CLASSIFICATION PLAN Position classification is the system whereby positions are classified according to their duties and responsibilities. Positions that are similar in type of work, level of difficulty and level of responsibility are grouped together in a class. All positions in a particular class are treated alike in such matters as salary, examinations and qualifications. Each position is allocated to a specific classification which is carefully described in a class specification. A class specification shall be prepared for each classification. The Personnel Officer shall administer and maintain the Classification Plan as approved by the City Council. Section 5.01 Nature and Contents of Plan The Classification Plan shall consist of classes of positions defined by class specifications, including title, class summary, examples of duties assigned to positions in each class, and qualifications required of applicants for positions in each class. Following the adoption of the Classification Plan, the Personnel Officer shall administer and monitor the plan to assure an adequate reflection of the City work force. The review may involve only selected classes or the entire Classification Plan. Subject to approval by the City Council, the Personnel Officer shall recommend the allocation of every position to a class included in the plan. ATTACHMENT 12 - Page 13 of 70 9 Section 5.02 Amendment of Classification Plan Whenever one or more new positions are under consideration for possible establishment, or whenever because of any revision in organization methods, a significant change of the duties or responsibilities of any existing position is made which may require the reallocation of such position, or whenever a new class is created to which any position may more appropriately be allocated, or whenever because of the abolishment or combination of any existing positions, or classes, an amendment of the classification plan is required, one or a combination of the procedures stipulated in the following shall be observed: a. The appointing authority shall forthwith report any significant facts relating to such possible changes in writing to the Personnel Officer in the manner prescribed. b. The Personnel Officer upon written request of any employee, or upon the Personnel Officer's initiative, after consultation with the head of the department concerned, may undertake any inquiry of the classification of any person. c. Upon either of the above initiations, the Personnel Officer shall study the assigned duties and responsibilities of any such position and the qualifications required for filling the same, and the relationships of such positions to other classes of positions in the classification plan. The Personnel Officer shall make an honest attempt to complete this study in a timely manner, typically within six months. d. On the basis of such investigation the Personnel Officer shall then make determinations for no change in allocation of the position, or allocation of the position to a more appropriate class in the existing classification or the establishment of the new class to which the position would be allocated, whichever is the appropriate action. e. The Personnel Officer shall recommend to the Council any change in the existing classes and class specifications deemed appropriate. RULE 6 SALARY ADMINISTRATION Section 6.01 Preparation of the Pay Plan The Personnel Officer shall prepare a pay plan covering all classifications, showing the minimum and maximum rates of pay. In arriving at such salary ranges, consideration shall be given to: a. prevailing rates of pay for comparable work in other public organizations through benchmark surveys; ATTACHMENT 12 - Page 14 of 70 10 b. internal alignments; c. current cost of living; d. recommendations of City Council and Department Heads; and, e. the City's financial condition and policies. Section 6.02 Pay Plan Structure The basic pay range of all classifications shall consist of a Basic Compensation Schedule of hourly, bi-weekly and monthly rates. There shall be a five percentage difference between each step in a five step range. Section 6.03 Entrance Rates on Initial Employment For permanent, full-time employees, the lowest rate of pay designated for a class shall normally be offered for recruitment purposes and shall normally be paid upon appointment to the class. Upon recommendation of the Department Head, as a result of market conditions such as a shortage of qualified candidates or should a candidate possess exceptional qualifications or experience, a new employee may be assigned to a rate other than the minimum rate. The assignment shall be approved by the Personnel Officer who will determine whether such action is in the best interest of the City. Appointment at other than the minimum shall in no manner affect the length of the probationary period. Section 6.04 Pay for Temporary and Part-Time Work Employees designated as "regular, part-time" shall be eligible for pay increases in a manner similar to regular full-time employees based on equivalent numbers of hours worked and given satisfactory performance. Temporary employees shall be eligible for pay step increases as determined by the appointing authority. Section 6.05 Pay for Probationary Employees A probationary employee shall be eligible to be considered for a one step (5%) adjustment, contingent upon completion of the probationary period which indicates achievement of "regular employee" status. The adjustment may be made any time after one year of service for management employees only when recommended by the Department Head (through the performance appraisal process) and approved by the Personnel Officer. Section 6.06 Pay Increases On each anniversary date an employee shall be eligible for a one step (5%) adjustment until the maximum pay rate of the assigned class is reached. The adjustment shall be implemented upon recommendation by the Department Head and approval by the Personnel Officer. Pay adjustments delayed because of unsatisfactory performance, but granted after the anniversary date, shall affect the anniversary date and date the next pay increase will be considered. a. Determining the Anniversary Date The date of the first step increase in a classification, unless or until another probationary period is served in another class, shall be used to determine the employee's anniversary date. The aforementioned date shall be moved up to either the 1st of the month or 15th of the month depending ATTACHMENT 12 - Page 15 of 70 11 upon where it occurs within the month. For example, if the date occurs between the first and the 14th, the anniversary date shall become the first of that month, and if the date occurs between the 15th and 31st, the anniversary date shall become the 15th of that month. Section 6.07 Pay Adjustment Upon Promotion Upon promotion, an employee’s initial placement in the new range is to the nearest step of the new range that is at least 5% higher than the previously assigned rate. Section 6.08 Pay Adjustment Upon Demotion When an employee is voluntarily demoted, a mutually agreed-upon pay step in the new range shall be assigned. When an employee is demoted as a result of disciplinary action, the step shall be set by the appointing authority imposing the discipline. Section 6.09 Pay Adjustment Upon Re-employment Upon re-employment, an employee shall be assigned the same step in the salary range that had been attained prior to layoff. Benefit accruals shall be equal to the benefit level the employee attained prior to layoff, except as precluded by applicable law. Section 6.10 Special Merit Pay A pay adjustment of up to 5% may be granted in advance of an employee's anniversary date in recognition of exceptional performance. The adjustment shall be made in rare cases and shall be recommended by the responsible Department Head and approved by the Personnel Officer, and must be accompanied by a current employee evaluation and memorandum supporting the request. Merit increases shall have no effect upon the anniversary date at which a regular step increase may be considered. This means that an employee whose salary anniversary date is in May and who receives a special merit pay increase in February is eligible for a regular merit step increase in May of that same year. Section 6.11 Recognition Bonus Pay (See MOU for this benefit for CEA and MPEA) The City shall grant $100 recognition bonus for certifications above and beyond requirements of position and used for the benefit of the City. The following list contains several certifications obtainable by City employees and of value to the City. To qualify for certification, the following parameters must be met: o The Certification must be issued by a governing or sanctioning professional body such as America Water Works Association or the American Institute of Certified Planners. o The certification must be obtained through a course of study and attaining the qualified skill level proven through testing by the sanctioning body. ATTACHMENT 12 - Page 16 of 70 12 o Certifications that are not on the list of approved certifications below must be approved by the City. The following list contains several certifications obtainable by City employees and of value to the City: i. Playground Safety Inspection Certificate ii. Certified Arborist iii. Pesticide Applicator and Advisor Certifications iv. American Institute of Certified Planners Certification v. Certificate in Public Works vi. Construction Inspector Certificate vii. Certified Municipal Clerk viii. Master Municipal Clerk ix. International Conference of Building Officials (ICBO) certificates, to include: • Plans Examiner • Housing Inspector • Mechanical Inspector • Plumbing Inspector • Combination Dwelling Inspector • Electrical Inspector • Light Commercial Combination Inspector x. American Association of Code Enforcement certificates to include: • Certified Zoning Enforcement • Officer, Certified Housing Enforcement Officer, • Certified Code Enforcement Administrator Section 6.12 Bilingual Pay Qualified employees who meet the following criteria shall receive a monthly stipend in recognition of their ability: 1. Employee must be assigned by the City Manager or his/her designee to speak and/or translate written material in a language in addition to English. This includes such specialized communication skills as sign language. 2. Employees must, as needed, speak and/or translate a second language. 3. Employees able to communicate and/or translate verbal information shall receive $85 per month. 4. Employees able to translate verbal and written information shall receive $125 per month. Employees assigned to translate written information will be required to be deemed qualified by the City. The City, at its discretion, may reassign an employee from a bilingual ATTACHMENT 12 - Page 17 of 70 13 assignment to a position which does not require a bilingual assignment. An employee in a bilingual assignment may request assignment to a position that does not require bilingual assignment. The request shall be made in writing to the City Manager, who will consider it according to the needs and availability of a qualified replacement. Section 6.13 Acting Appointment Pay (See Employment Practices – Types of Employment – Acting) Employees given an Acting Appointment for 14 calendar days or more, shall receive Acting Appointment Pay equivalent to the minimum salary rate for that position such that the minimum adjustment would be at least 5% above the employee's current salary, where applicable, with the approval of the Department Head and the Human Resources Manager. Acting Appointment Pay shall be retroactive to the first day of an acting assignment and subject to no additional benefits. An Acting Appointment shall generally be less than 12 months duration. Extension beyond 12 months shall be subject to the approval of the City Manager. If the position, or the employee, is one that falls under representation by one of the City's recognized employee associations, the appropriate association shall be informed of the extension and the reasons for the extension. Section 6.14 Payroll Deductions The City will deduct from the employee's periodic paycheck, all mandatory deductions required by law and voluntary deductions requested by the employee. Each paycheck will be accompanied by a statement itemizing salary deductions. Section 6.15 Work Day and Work Week The official work week of the City of San Juan Capistrano shall be forty (40) hours from Friday at mid-workday to the following Friday at mid- workday for most full-time employees. The official City Hall operating hours shall be Monday through Thursday from 7:30 a.m. to 5:30 p.m. and Fridays from 7:30 a.m. to 4:30 p.m., with alternate schedules to meet Department operations or to meet special employees' needs due to transportation or caregiver issues. It shall be the duty of each Department Head to arrange the work of the department so that each employee therein shall work not more than five (5) consecutive days in each calendar week except that a Department Head, with approval of the City Manager, may require any employee in the department to temporarily perform service in excess of eight (8) or (9) hours per day or five (5) days per week when public necessity or convenience so requires. Department Heads will not temporarily change an employee's regular work schedule to avoid payment of overtime. Section 6.16 Flextime A flexible work schedule may be developed and implemented whereby designated employees may be allowed to work a total of eighty hours within a two-week period regardless of the number of hours worked per day, subject ATTACHMENT 12 - Page 18 of 70 14 to approval of the Department Head and Personnel Officer. The flexible work schedule shall be maintained as long as the needs of the public and City are explicitly met. Designated employees may be allowed to work four (4), ten (10) hour days in a work period or work a 9/80 schedule. · Section 6.17 Management Flextime Management personnel may flex their schedule as needed during the pay period to allow for required attendance at extraordinary events or meetings or unscheduled or emergency situations. This option allows the management employee to operate with professional flexibility. Use of flextime will require prior approval by the Department Head. Use of a flextime schedule which would extend beyond one pay period will require prior approval by the Department Head and City Manager. Section 6.18 Overtime (See MOU for classifications represented by CEA) Whenever, at the discretion of the appointing authority, an employee works beyond forty (40) hours in a work period, such person shall be compensated for such overtime work to the nearest 15 minutes at time-and-one-half his/her regular compensation, or receive compensatory time off earned at time-and- one-half rate. Whenever, at the discretion of the appointing authority, an employee works beyond twelve (12) hours in one work day, such person shall be compensated for such overtime beyond the normally-scheduled hours (e.g., 9 in the case of an employee who works 12 hours on a regularly-scheduled 9-hour day) to the nearest 15 minutes at double the rate of his/her regular compensation, or receive compensatory time off earned at double rate. Compensation for overtime shall be in the form of either cash payment or compensatory time off at the discretion of the Department Head with due regard for the wishes of the employee and particular regard for the needs of the City. Vacation (except when used in-lieu of sick leave), holiday and comp time shall count towards hours worked for the calculation of overtime. The employee may accumulate and hold for future use no more than 120 hours at any one time of compensatory time (CEA members may accumulate hours, in accordance with the CEA MOU) and, at the end of the fiscal year, may carry over no more than 80 hours of compensatory time for use in the next fiscal year. (The carry-over limit for CEA members is noted in the CEA MOU.) Compensatory time may only be cashed out at original rate of accrual. All other overtime hours accumulated to that point shall be paid at the end of the fiscal year. Such compensatory time off is subject to approval of the Department Head and Personnel Officer. Overtime requested by an employee to adjust the employee's work schedule shall be considered flex time and is not subject to compensation at the rate of time and one-half. Generally, overtime shall be assigned/offered to full-time employees before ATTACHMENT 12 - Page 19 of 70 15 being assigned/offered to part-time or temporary employees. The City shall assign overtime with due regard to an equitable and fair distribution of work, whenever possible. Section 6.19 Emergency Stand-By/Call Out (See MOU for classifications represented by CEA) Section 6.20 Work on a Holiday Any full-time employee who is required to work on a recognized or an observed holiday shall be entitled to be paid for the holiday plus time-and-one-half for all hours worked on the holiday or compensatory time off at time-and-one-half. The decision of whether an employee is paid or is given compensatory time off shall be made by the employee. Section 6.21 Flexible-Staffing The non-competitive promotion of an employee from certain designated classifications in a classification series to certain higher-level classifications in the same classification series. An employee promoted to a flexibly-staffed position shall serve a promotional probationary period in accordance with these rules. The salary of an employee whose position is reclassified due to flexible staffing, pursuant to the provisions of this rule, shall be determined as follows: After the successful completion of at least twelve (12) months of continuous City service with satisfactory evaluations, and a determination that the job assignments may warrant a reclassification, upon the Appointing Authority’s recommendation and Human Resource Director's approval, in lieu of a merit step increase, the employee may be moved to the nearest step of the agreed-upon higher position which grants the employee no less than a five percent (5%) increase in compensation. The employee's salary anniversary date shall change and he/she shall be required to serve a new probationary period. 6.22.1 Flexibly Staffed Classifications. The following classifications are flexibly staffed: Office Assistant/Administrative Specialist/Administrative Coordinator Public Works Specialist I/II Accounting Clerk/Accounting Specialist Utilities Operator Trainee/Utilities Operator I/II (including GWRP) Assistant Planner/Associate Planner Assistant Engineer/Associate (Civil) Engineer Positions may be filled at the entry level. This rule (6.22.1) does not prevent the City from identifying certain positions that contain primarily routine tasks that will preclude the position from moving from the entry level to a higher level. This rule does not guarantee that a position will be reclassified in accordance with the provisions of this rule. ATTACHMENT 12 - Page 20 of 70 16 RULE 7 EMPLOYEE BENEFITS Section 7.01 Vacation Accrual and Use a. Executive Employees Executives accrue Vacation leave annually, based on an accrual rate approved by the City Council. Vacation leave may be accumulated on an unlimited basis. b. Management Employees (See Management and Professional Employees Association Memorandum of Understanding) c. Classified Employees (Non-Management) (See Classified Employees Association Memorandum of Understanding) d. Part-time Employees Part-time employees hired prior to July 1, 2018, shall be eligible to accrue vacation credit on a pro-rated basis based on the number of hours worked (i.e., 20 hours per week equals one-half vacation accrual rate). Part-time employees hired on or after July 1, 2018, shall not accrue Vacation leave, except as authorized by the City Manager or designee. Accrual of Vacation Time The maximum amount of vacation time which may be accrued shall be 300 hours. Appointment from Part-Time to Full-Time Upon appointment to full-time employment, employees shall accrue vacation at the rate of 80 hours annually. Increases in the accrual rate shall be based upon length of service in a full-time capacity. Section 7.02 Vacation Usage The time during the calendar year at which an employee may take vacation leave shall be determined by the Department Head but with due wish of the employee and particular regard for the needs of the City. Eligible employees shall accrue vacation beginning with the date of hire. Section 7.03 Vacation and Comp Time Benefits for Terminating Employees Upon separation from employment, the employee shall be paid for any accrued vacation leave and compensatory time which has accrued and is unused within the limits specified above (or what is outlined in the CEA MOU, if the employee’s position is represented by CEA). Section 7.04 Holidays Occurring During Vacation When one or more legal municipal holidays fall within a vacation leave, such day or days shall not be charged as the vacation leave. Section 7.05 Holidays ATTACHMENT 12 - Page 21 of 70 17 Represented employees, part-time employees hired prior to July 1, 2018, and Executive employees shall have the following holidays with pay and shall not be required to work on such holidays except as hereinafter provided: a. January 1st (New Year's Day) b. Third Monday in February (Washington's Birthday) c. Last Monday in May (Memorial Day) d. July 4th (Independence Day) e. First Monday in September (Labor Day) f. November 11th (Veteran's Day) g. Fourth Thursday in November (Thanksgiving Day) h. The day following Thanksgiving Day i. December 24th (Christmas Eve) j. December 25th (Christmas Day) k. December 31 (New Year’s Eve Day) l. Floating Holiday (20 hours annually, credited the first full pay- period in July) Benefited part-time employees hired prior to July 1, 2018, shall receive holiday pay based on the following schedule and subject to the average number of hours worked per week during the prior fiscal year:  2 hours for anyone working 10-19 hours per week  4 hours for anyone working 20-29 hours per week  6 hours for anyone working 30-39 hours per week Part-time employees hired on or after July 1, 2018, are not eligible for holiday pay. Whenever a holiday falls on a Sunday not scheduled as a regular work day, the following Monday shall be observed as the holiday. Whenever a holiday falls on a Saturday not scheduled as a regular work day, the City will recognize the holiday on a case-by-case basis and observe it either on the preceding Friday or the Monday after the holiday, based on the needs of the community. The determination of the holiday observance will be made when the City issues the master holiday schedule each year. Employees on a 9/80 schedule will be able to bank holiday hours for those holidays that occur on their flex day off. The following shall apply to the use of Holiday banked hours: • Banked hours will be capped at 24 • Hours banked are not compensable - they cannot be cashed out • Banked hours must be used before any other kind of leave, except for sick leave • Employees will be strongly encouraged to use banked hours within a reasonable period of time, preferably by the end of each fiscal year. • Banked hours will be paid out prior to an employee receiving any type of ATTACHMENT 12 - Page 22 of 70 18 increase in compensation. An employee must have been in a paid status for the entire amount of regularly- scheduled hours of the work day immediately prior to and the work day immediately following a City holiday in order to be paid holiday pay. Section 7.06 Floating Holiday Probationary and regular full-time employee shall be credited with a total of twenty (20) hours of compensated time off on July 1 st of each year. The time(s) which the employee may elect to use this leave shall be arranged with and approved by the employee’s supervisor. The floating holiday hours must be used prior to June 30th or shall be forfeited. Employees hired on July 1st through September 30th receive twenty (20) hours of floating holiday, employees hired on October 1st through December 31st receive fifteen (15) hours of floating holiday, employees hired on January 1 st through March 31st receive ten (10) hours of floating holiday, and employees hired on April 1st through June 30th shall not receive floating holiday. Part-time employees are not eligible for Floating Holiday. Section 7.07 Sick Leave Sick leave shall mean the time during which an employee is permitted to be absent from the duties of City service by reason of sickness or injury which incapacitates or prevents the employee from performing assigned duties, without any deduction being made from salary or compensation, and shall include, in certain cases, serious illness or death of a member of the employee's immediate family. It will be the responsibility of the Department Head to periodically review the use of sick leave in the department. Abuse of sick leave may be used as a factor in determining employee performance for employee evaluations. The legitimate use of FMLA qualified sick leave shall not be used as a factor in determining employee performance for evaluation. Section 7.08 Sick Leave Allowance All regular and probationary full-time employees shall be entitled to eight (8) hours sick leave for each calendar month of service. There shall be no limit on the amount of sick leave which may be accumulated. Part-time and temporary employees may accumulate sick leave on a pro-rated basis, based on the hours worked. Section 7.09 When Sick Leave May Be Taken Sick leave may not be used until it is earned and shall be taken only in case of actual and necessary sickness or disability of the employee, or in accordance with law. Eligible employees may utilize a maximum of ninety-six (96) hours of accumulated sick leave with pay in the event of 1) the employee's presence is required elsewhere because of family medical and dental ATTACHMENT 12 - Page 23 of 70 19 appointments, serious illness, injury, disability or death of a member of the employee's immediate family; 2) official order to appear in court as a litigant or as a witness; and 3) personal necessity as defined and limited below. Sick leave shall not be used in lieu of or in addition to vacation for the intent of extending vacation. When an employee is compelled to be absent from employment by reason of injury arising from and in the course of City employment as determined by the Workers' Compensation law, the employee may elect to apply accrued sick leave, if any, in such amount that when added to Workers’ Compensation benefits equals the employee's gross salary. Earned vacation time and compensatory time off may be utilized in a similar manner. Personal necessity leave can be used by a regular full-time or Executive employee at a rate of 24 hours per fiscal year for absences other than illness or disability and the absences shall be deducted from accumulated sick leave. Sick leave or personal necessity leave is not intended for taking care of personal business which could be taken care of at another time. Initial probationary, part-time and temporary employees are not eligible for Personal Necessity leave. Personal necessity is considered to be: a) a personal matter that requires your attention which cannot be taken care of except during normal working hours; or b) a matter that requires your attention, such as a hot water heater flooding your home, fire, robbery; or The nature of the personal necessity need not be disclosed in writing on the Absence Request Form, but it shall be discussed with the employee's Supervisor or the Personnel Officer or designee. This information shall be treated confidentially by all parties involved. Section 7.10 Notification of Illness by Employee Except in emergency situations, an employee on sick leave shall notify his/her supervisor no later than the beginning of the assigned workday. When on FMLA leave, the employee will be required to notify the City in compliance with the Family Medical Leave Act. Section 7.11 Return From Sick Leave Upon returning from sick leave, a physician's certificate may be required if, in the opinion of the Department Head, it appears that an employee is abusing sick leave privileges or to determine the validity of the employee's absence during the time for which sick leave was requested. Any employee absent from duty on sick leave for three (3) consecutive work days due to illness or accident may, at the discretion of the Department Head, be required to submit to a physical examination by a physician designated by the City, and at City expense, to determine fitness to return. Fitness to Return Report shall be the property of the City. ATTACHMENT 12 - Page 24 of 70 20 Section 7.12 Sick Leave Payout Prior to Separation of Employment At the employee's request, the City will compensate in cash or in time off for unused sick leave accrued above 288 hours. The compensation formula will be consistent with the payout levels established in Section 7.13 of the Personnel Rules, based upon years of service. Employees with greater than 288 hours of sick leave and who have used two (2) days or fewer of sick leave in the previous fiscal year shall have the right to cash-out up to two days of sick leave at 100% the following July 15th. In addition to the above provision, Management employees shall be allowed to: a) cash out sick leave above 200 hours at the rate of 50%; b) convert hours accrued beyond 300 to deferred compensation, as they accrue them each pay period, at their current sick leave cash out rate, shown in Section 7.13. c) convert up to three days (24 hours) of sick leave to vacation if they've used 16 hours or less of sick leave in one year (July 1 - June 30), at their current cash out rate, shown in Section 7.13. d) convert up to five (5) days of unused sick leave to a Deferred Compensation account at the end of each fiscal year, at their current cash out rate. Following such conversion, the employee must have a minimum balance of eighty (80) hours in their sick leave account. Section 7.13 Sick Leave Cash-Out Upon Separation of Employment City employees hired before July 1, 1999, who separate employment with the City shall be compensated in cash for unused sick leave at final rate of pay based on the following: Less than 2 years None 2 to less than 15 years 50% 15 to less than 20 years 75% 20 or more years 100% ATTACHMENT 12 - Page 25 of 70 21 Employees hired on or after July 1, 1999, shall abide by the following sick leave cash out schedule: Less than 2 years None More than 2 years 50% There shall be no maximum amount of unused sick leave eligible for cash compensation subject to the foregoing schedule. OTHER LEAVES OF ABSENCE Section 7.14 Community Service Leave Each Management and Executive employee shall be granted up to four (4) hours paid leave per month to undertake community service at approved non-profit, charitable or community service organizations. Section 7.15 Bereavement Leave An employee shall be granted a leave without loss of pay in case of death of a member of the employee's immediate family. Such leave is designated as bereavement leave. Up to five (5) days leave without loss of pay shall be granted for the death of a member of the employee’s immediate family. Immediate family as used in this section is defined as the employee's spouse, registered domestic partner, child, foster child, grandchild, stepparent, legal guardian, stepchild, parent, brother, sister, grandparent, mother-in-law, father-in- law and grandparents-in-law; or: a. Any other relative by blood or marriage who is a member of the employee's household. (Employees may be required to submit proof that the deceased relative was a member of the employee's household prior to the time of death.) b. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required to handle funeral arrangements and/or matters of estate. In addition, bereavement leave may be granted on a case by case basis under other circumstances at the discretion of the City Manager when it is in the best interest of the City to do so. Time off beyond these parameters shall be charged to any type of available leave. Bereavement leave shall only be available to Executives and regular and probationary full-time employees. Section 7.16 Jury Duty Leave Regular and probationary employees and Executives who are summoned to serve on jury duty or subpoenaed as a witness in any court in this State of the ATTACHMENT 12 - Page 26 of 70 22 United States, or any administrative board of tribunals, shall be entitled to a leave of absence with ·pay while serving. Employees may keep fees and fees for mileage received while serving. Employees must return to work if not required to attend jury duty on a particular day. An employee who is released from jury duty with four hours or more remaining in his or her normal work day shall report to their supervisor. Reporting back means that the employee has contacted his/her supervisor via a phone call (not a voicemail message), text, or email, and received a response back from the supervisor. Section 7.17 School Activity Leave Pursuant to California Labor Code Sections 230.7 and 230.8, parents, guardians and grandparents having custody, of school-age children shall be allowed leave from their jobs, with or without pay, as may be necessary to participate in school activities such as parent-teacher conferences, disciplinary matters, school programs and related events with their children. Such leave is limited to 40 hours per school year, at a maximum of 8 hours per month. Employees must give reasonable advance notice to the employer to permit work coverage, and may be required to provide documentation from the school that the employee participated in the activity on the specific date and time. Leave properly requested in advance shall not be denied. Section 7.18 Family and Medical Leave Policy In accordance with the Federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), the City will grant family and medical leave to eligible employees. Any employee employed continuously for at least twelve (12) months and who has been employed for at least 1,250 hours during the twelve (12)-month period immediately preceding the commencement of the leave, is eligible for leave. A leave may be granted for any of the following reasons: 1. The birth of a child or to care for a newborn of an employee; 2. The placement of a child with an employee in connection with the adoption or foster care of a child; 3. Leave to care for a child, parent or a spouse who has a serious health condition; 4. Leave because of the em p loy ee ’s own serious health condition that makes the employee unable to perform the functions of his/her position; or 5. 26 weeks for an injured military service member, as required by law. ATTACHMENT 12 - Page 27 of 70 23 7.18.1 Amount of Leave. 7.18.1.1 Eligible employees are entitled to a total of twelve (12) weeks of leave during a twelve (12) month period. The twelve (12) month period is calculated by using the date the leave has been requested and looking back twelve (12) months from that date. 7.18.1.2 If leave is requested for the birth, adoption or foster care placement of a child of the employee, leave must be concluded within one year of the birth or placement of the child. In addition, the basic minimum duration of such leave is two weeks. However, an employee is entitled to leave for one of these purposes (e.g. bonding with a newborn) for at least one day, but less than two weeks duration on any two occasions. If leave is requested to care for a child, parent, spouse or the employee’s own serious health condition, there is no minimum amount of leave that must be taken. However, the notice and medical certification provisions of this policy must be complied with. 7.18.1.3 Both Spouses Employed by the City: If both spouses are employed by the City, they are entitled to individual leave of twelve (12) workweeks except in the following cases: The aggregate number of workweeks of leave to which both may be entitled is limited to twelve (12) workweeks during any twelve (12) month period if leave is taken for the birth or placement for adoption or foster care of the employees' child. This limitation does not apply to leave taken by their spouse to care for the other who is seriously ill and unable to work, or to care for a child or parent with a serious health condition or for the employee’s own illness. 7.18.1.4 Employee Leave Benefits While On Family Leave: While on leave under this policy, the City of San Juan Capistrano will require an employee to concurrently use paid accrued leaves after requesting FMLA and/or CFRA leave, to the extent allowed by law. Whenever the City determines that a leave is FMLA or CFRA qualifying, the City will place the employee on leave. Once the available paid leave accruals are exhausted, the employee will be on authorized leave without pay. Employees shall use paid sick leave accruals if they are on leave due to their own serious health condition. Once sick leave is exhausted, employees shall use other paid leaves which they have earned such as vacation, floating holiday, and compensatory time. Employees shall use paid vacation, special leave, floating holiday, ATTACHMENT 12 - Page 28 of 70 24 and compensatory time if on leave due to a family member illness or qualifying situation. 7.18.1.5 The leave will not constitute a break in service for purposes or longevity, seniority of any benefit plans. 7.18.1.6 Employee Health Insurance Coverage: The City will continue to pay its portion of the employee's health insurance premiums for the twelve (12) weeks. The employee is responsible to pay his/her portion of the health insurance premiums. If the employee does not return to work after the conclusion of the family leave, the City may recover its share of the health insurance premiums during the period of the unpaid family care leave, as provided by law. 7.18.1.7 Employees may make the appropriate contributions for continued coverage for voluntary, non-health benefit plans by payroll deductions or direct payments made to these plans. Depending on the particular plan, the Human Resources Manager will inform you whether the premiums should be paid to the carrier or to the City of San Juan Capistrano. Coverage on a particular plan may be dropped if you are more than 30 days late in making a premium payment. However, you will receive a notice at least fifteen (15) days before coverage is to cease, advising you that you will be dropped if your premium payment is not paid by a certain date. Employee contribution rates are subject to any change in rates that occurs while the employee is on leave. 7.18.1.8 The FMLA and CFRA leave provisions shall run concurrently in all cases where applicable. 7.18.1.9 An employee may also qualify for the provisions of the California Pregnancy Disability Leave Law. The amount of pregnancy disability leave can be up to four (4) months with verification of continued disability from a physician. This leave is in addition to the FMLA and CFRA leave. 7.18.2 DEFINITIONS: 12-MONTH PERIOD - means a rolling twelve (12) month period measured backward from the date leave is taken. CHILD - means a child under the age of eighteen (18) years of age or older child who is incapable of self-care because of a mental or physical disability. An employee's child is one for whom the employee has actual day-to-day responsibility for care and includes, a biological, adopted, foster or step-child. ATTACHMENT 12 - Page 29 of 70 25 PARENT - means the biological parent of an employee or an individual who stands or stood in place of a parent to an employee when the employee was a child. This term does not include parents-in-law. SPOUSE - means a husband or wife as defined or recognized under California State law for purposes of marriage. KEY EMPLOYEE - a salaried employee whose salary is among the highest ten percent (10%) of the City's employees. SERIOUS HEALTH CONDITION - under the FMLA and CFRA, an illness, injury, impairment or physical or mental condition that involves the following is included: 1. Inpatient Care: an overnight stay in a hospital, hospice, or residential medical care facility, including any period of incapacity (e.g. inability to work or perform other regular daily activities due to the serious health condition, treatment involved, or recovery therefrom,) or 2. Continuing treatment by a health care provider. A serious health condition involving continuing treatment by a health care provider includes any one or more of the following: a) A period of incapacity (i.e. inability to work, or perform other regular daily activities) due to serious health condition of more than three consecutive full calendar days, and any subsequent treatment or period of incapacity relating to the same condition, that also involves:  Treatment two or more times within 30 days from the health care provider, by a nurse or physician's assistant under direct supervision by a health care provider, or by a provider of health care services under orders of, or on referral by a health care provider. The first medical visit must take place within seven (7) days of the first day of incapacity; or  Treatment by a health care provider on at least one occasion within seven (7) days of the first incapacity which results in a regimen of continuing treatment under the supervision of the health care provider. This includes a course of prescription medication or therapy requiring special equipment to resolve or alleviate the health condition. If the medication is over the counter, and can be initiated without a visit to a health care provider, it does not constitute a regimen of continuing treatment. b) Any period of incapacity due to pregnancy or for prenatal ATTACHMENT 12 - Page 30 of 70 26 care. (This entitles the employee to FMLA leave, but not CFRA leave. Under California law an employee disabled by pregnancy is entitled to pregnancy disability leave.) c) Any period of incapacity or treatment for such incapacity due to a chronic serious health condition. A chronic serious health condition is one which: 1. Requires periodic visits for treatment by a health care provider, at least twice a year for the same condition, or by a nurse or physician’s assistant under direct supervision of a health care provider; and 2. Continues over an extended period of time (including recurring episodes of a single underlying condition); and 3. May cause episodic rather than a continuing period of incapacity such as asthma. Absences for such incapacity qualify for FMLA leave even if the absence last only one (1) day. 4. A period of incapacity which is permanent or long- term due to a condition for which treatment may not be effective; the person must be under continuing supervision by the health care provider; or 5. Any period of absence to receive multiple treatments by a health care provider for restorative surgery after an accident or other injury, or for such conditions as chemotherapy which would likely result in a period of incapacity of more than three (3) days. d) A period of incapacity which is permanent or long-term due to a condition for which treatment may not be effective. The employee or family member must be under the continuing supervision of, but need not be receiving active treatment by a health care provider. e) Any period of absence to receive multiple treatments (including any period of recovery therefrom) by a health care provider or by a provider of health care services under orders of, or on referral by, a health care provider, either for restorative surgery after an accident or other injury, or for a condition that would likely result in a period of incapacity or more than three (3) consecutive calendar days in the absence of medical intervention or treatment. HEALTH CARE PROVIDER - includes a medical practitioner; physician’s assistant, clinical social worker authorized to practice under State law and performing within the scope of his/her practice; any health care provider from whom an employer or group health plan's benefits manager who will accept certification of the existence of a serious health condition to substantiate a claim ATTACHMENT 12 - Page 31 of 70 27 for benefits; and a health care provider who practices in a country other than the United States, who is license to practice in accordance with the laws and regulations of that country. 7.18.3 Procedure. Requests for family leave of absence shall be made in writing by filling out the appropriate form and submitting it to Human Resources. The request shall state specifically the reason for the request, the date when it is desired to begin the leave and the probable date of return. Requests for leave under FMLA and CFRA do not require a statement identifying the condition necessitating the leave. The Human Resources Office will notify the employee that the leave has been designated as applicable leave. The City may designate as qualifying leave a workers' compensation injury which also constitutes a serious health condition. Thus, the employee receives both the workers' compensation benefits and the leave benefits under this section. 7.18.4 Leave Increments. The leave must be taken in increments of at least one hour for recurring medical treatments certified by a health care provider. However, where leave is taken because of the birth or the placement of a child for adoption or foster care, intermittent leave or leave on a reduced schedule may only be taken if approved by the City. 7.18.5 Continuation Of Benefits During Leave Of Absence Without Pay. The City shall request certification from the attending health care provider to verify the serious health condition of a family member. Such certification should include the following statements:  Date on which the serious health condition commenced;  Probable duration of the condition;  In the case of caring for a family member, an estimate of the amount of time the employee needs to care for the individual; ATTACHMENT 12 - Page 32 of 70 28  That the serious health condition warrants participation of a family member to provide care during the period of treatment. 7.18.6 Employee Notice of Leave. Although the City of San Juan Capistrano recognizes that emergencies arise which may require employees to request immediate leave, employees are required to give as much notice as possible of their need for leave, as required by law. If an employee's need for a family care leave is foreseeable, due to a planned medical treatment or planned supervision of a child, parent or spouse with a serious health condition, an employer may require the employee to provide reasonable advance notice of the need for the leave and to consult with the City regarding the scheduling of the treatment or supervision so as to minimize disruptions to the operation of the City. Any such scheduling, however, shall be subject to the approval of the health care provider of the child, parent or spouse. 7.18.7 Right to Reinstatement. Upon expiration of an authorized leave, an employee is entitled to be reinstated to the position of employment held when the leave commenced, or to an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment. Employees have no greater rights to reinstatement, benefits and other conditions of employment than if the employee had been continuously employed during the FMLA/CFRA period. Reinstatement provisions are not applicable if the position is eliminated as a result of a reduction in force or elimination of service while the employee is out on leave. Whenever possible, a reinstatement date will be discussed at the beginning of the leave. If no date has been agreed upon at the beginning of the leave, or if the reinstatement date differs from the original agreement, an employee may be reinstated as soon as possible after the employee notifies the City of his/her readiness to return. 7.18.7.1 Reinstatement of Key Employees. The City cannot deny family care leave, but reinstatement can be denied to a key employee who is among the highest paid ten percent (10%) of the City's employees. A denial for reinstatement may be given if it is necessary to prevent substantial and grievous economic injury to the operations of the City. The City will notify the ATTACHMENT 12 - Page 33 of 70 29 employee of the intent to refuse reinstatement at the time the City determines that refusal is necessary to prevent substantial and grievous economic harm to the City. 7.18.8 Fitness For Duty Certification. An employee whose leave was due to the employee's own serious health condition shall provide the City with a Return to Work release from the health care provider certifying that the employee is able to resume work. Reinstatement may be delayed until the City receives the certification. 7.18.9 Submittal of Forms. The request for family leave shall be submitted on forms provided by the City. Section 7.19 Military Leave Military leave shall be granted in accordance with the provisions of State and Federal law. All employees applying for military leave shall give the Department Head, within the limits of military regulations, an opportunity to determine when such leave shall be taken. Employees may use compensatory time and vacation time for weekend drills. Section 7.20 Leave of Absence Without Pay Leave of absence without pay may be granted in advance by the Personnel Officer, or his or her designee, upon recommendation of the Department Head. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request. All requests shall be evaluated on basis of personal need, duration and work requirements. Any leave of absence without pay lasting more than fourteen (14) calendar days shall preclude employee from accruing leave time and other benefits after the 14th day. During such a leave of absence, the employee shall continue to be responsible for payment of all health-related employee share of premiums (medical, dental, vision) that the employee was required to pay prior to such leave, and it is the employee’s responsibility to submit payment to the Finance office on each payday that the premium would have typically been paid by the employee. Section 7.21 Administrative Leave Refer to Management and Professional Employees Association Memorandum of Understanding. ATTACHMENT 12 - Page 34 of 70 30 Executive employees shall accrue 80 hours administrative leave per year. There is unlimited accrual of this leave, and Executive Employees may buy back up to 80 hours of administrative leave if the leave hours remain at the end of the fiscal year. This leave is compensable upon separation. Section 7.22 Administrative Compensation Employees exempt from the Fair Labor Standards Act are expected to work the hours necessary to complete the requirements of the position. In certain major emergency and/or disaster circumstances as declared and approved by the City Manager or designee, exempt employees may be eligible to receive additional compensation (as determined by the City Manager) for emergency/disaster response, including, but not limited to, major fires, floods, earthquakes, terrorism events, or other natural or manmade disasters. The City Manager’s decision cannot be appealed or grieved. The City shall make reasonable efforts to provide meals, food, and shelter for all employees and volunteers responding to such incident(s), or the City may reimburse an employee or volunteer for reasonable expenses, as determined by the City Manager or designee. Section 7.23 On-the-Job Injury Leave Whenever an employee is compelled to be absent from active duty due to an injury disability arising out of and in the course of employment, such employee shall be entitled to receive an On-the- Job Injury Leave With Pay for up to the first three consecutive days of such absence. The granting of such leave shall be conditioned upon the following: a) the absence is at the discretion of a licensed medical physician or other designated health care professional. b) supervisory personnel have been properly notified of such injury or disability and an on-the-job injury report has been properly completed and submitted. c) the injury occurred while the employee was performing work duties on the job. Whenever the On-the-Job Injury Leave extends beyond the first three days, the employee will be allowed to use accrued leave to supplement the Workers’ Compensation allowance to achieve the equivalent of 100% of his/her salary. Section 7.24 Compensation For Job Connected Illness or Injury In accordance with Workers' Compensation laws, the City provides protection for employees in the event of on-the-job injuries. If an employee is injured on the job, the injury must be reported ATTACHMENT 12 - Page 35 of 70 31 immediately to the supervisor - no matter how minor it seems. If necessary, the employee should receive first aid or medical treatment. Detailed instructions shall be given to the employee to initiate a Workers' Compensation claim as necessary. The Personnel Officer or his or her designee shall assure that required forms are completed in a timely manner. Section 7.25 Non-Work Related Disability Leave If an employee is compelled to be absent from active duty due to a non-work related disability or accident, the City shall grant a leave of absence in accordance with state disability laws. The City provides short and long-term disability insurance coverage to assist an individual when this situation arises. Section 7.26 Unauthorized Absence A City employee who without prior authorization is absent or fails to discharge regularly assigned duties for a period of twenty-four (24) consecutive work hours shall be considered to have abandoned the job and may be subject to disciplinary action, including discharge. OTHER BENEFITS Section 7.27 Medical. Life. Vision and Dental Insurance (See applicable MOUs for represented classifications) The City provides medical, life, vision and dental insurance for City employees. The insurance becomes effective the first day of the month following date of hire, as long as the employee submits the proper paperwork to the Human Resources Office within three business days before the first of the next month. Insurance coverage is included in the applicable MOU or resolution. Questions regarding coverage, forms and other matters pertaining to the insurance program should be directed to the Human Resources Office. Section 7.28 COBRA The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires that the group health plans provide employees and their dependents the opportunity to continue health care coverage under the plan in certain circumstances where coverage under the group health plan would otherwise terminate. While the City must make continued health coverage available, it can charge qualified beneficiaries up to 102% of the cost of coverage if continuation of benefits under the group plan is desired. Section 7.29 Retiring Employee Recognition Program ATTACHMENT 12 - Page 36 of 70 32 The Retiring Employee Recognition Program provides for a salary incentive for long term City service. The guidelines and definitions for this program are detailed in the Administrative Policy Manual. Section 7.30 Retirement Plan Enrollment in the Orange County Employees Retirement System (OCERS) is governed by rules set forth by OCERS. Section 7.31 Short-Term/Long-Term Disability Insurance Eligible employees may receive short-term/long-term disability coverage or income protection of up to two-thirds of salary during disability periods due to non-job related injury or illness up to a maximum percentage of salary. Section 7.32 Deferred Compensation Program Employees may elect to have a portion of their salary withheld from their paycheck on a pre-tax basis and deposited into the employee’s 457 Plan account. Contact the Human Resources Office to enroll. Section 7.33 401(a) Deferred Compensation Program The City shall establish a 401(a) deferred compensation program through ICMA, subject to the provisions allowable under current regulations for this type of program. Section 7.34 Educational Reimbursement The City's annual educational reimbursement for an employee shall be u p to a maximum of $5,000/year for a degree from an accredited college or university or certificate program, with no maximum benefit during employment. Eligible expenses may include: application/registration fees; tuition; required textbooks, supplies and materials; laboratory fees; and required student health and/or association fees. Incidental expenses such as transportation, parking, meals and paper supplies are not eligible for reimbursement. Employees who receive reimbursement funds under this program shall be required to agree in advance that if the employee terminates employment with the City within eighteen months following the date of course completion, all funds reimbursed for such course work shall be repaid to the City by the employee. City will provide up to $20,000 annually for all employees to participate in the program and carryover any remainder to the following fiscal year up to a total pool amount of $35,000. If annual requests exceed the amount available, amounts would be pro-rated ATTACHMENT 12 - Page 37 of 70 33 based on requests on a first come, first served basis. The Personnel Officer or designee shall have authority regarding courses of study eligible for reimbursement. Unless otherwise deemed appropriate, only regular full-time employees may be eligible to elect to take courses which will benefit their positions with the City. Upon authorization, employees shall complete the course with a passing grade (defined as a “C-“ or better) and fulfill requirements set forth by the Personnel Officer or designee in order to receive reimbursement. Guidelines and requirements pertaining to the reimbursement program are covered in detail in the Administrative Policy Manual, and relevant Memorandum of Understanding. Section 7.35 Ride Share Program Employees who carpool, walk, bike, take the bus or the train to and from work at least twice per week shall, at the end of the fiscal year, be eligible for nine (9) hours of additional floating holiday time in the next fiscal year. Section 7.36 Mileage Reimbursement Management and Classified employees shall receive mileage reimbursement in accordance with IRS standards and any applicable MOU. Section 7.37 Auto Allowance Management employees shall receive auto allowance in accordance with their MOU. Executive employees shall receive auto allowance as approved by the City Council. Section 7.38 Lunch and Break Periods Because of varying work shifts, flextime and job conditions, lunch and break periods are scheduled with the supervisor. Typically a one- hour or one-half hour lunch break is provided. Two break periods of fifteen (15) minutes each are also allowed. Break periods cannot be accumulated. Section 7.39 IRS Code Section 125 Plan The City will provide employees the opportunity to participate on a voluntary basis in a Dependent Care Assistance Program (Section 129) under Internal Revenue Code Section 125, which allows employees to redirect part of their salary, before it is taxed, to be used for child, elderly and dependent care, and eligible medical expenses. ATTACHMENT 12 - Page 38 of 70 34 RULE 8 EMPLOYMENT PRACTICES Section 8.01 Fair Employment Practice The City of San Juan Capistrano assures any technique or procedure used in recruitment and selection of employees shall be designed to measure only the job-related qualifications of applicants. No recruitment or selection technique shall be used which, in the opinion of the Personnel Officer or designee, is not justifiably linked to successful job performance. It is the policy of the City that no technique, procedure or policy in recruitment and selection shall be discriminatory to any group protected by state or federal legislation. Section 8.02 Non-Discrimination Policy The City shall offer equal employment opportunities to all persons without regard to race, creed, color, sex, age, national origin, religion, physical or mental handicap or veterans' status. No applicant is to be discriminated against or given preference because of these factors. This policy is intended to apply to recruiting, hiring, promotions, upgrading, layoffs, compensation, benefits, termination and all other privileges, terms and conditions of employment. Section 8.03 Hiring Relatives No member of the immediate family of the City Manager or any City Council member shall be appointed to any position, whether full or part- time, in the City work force. The hiring of relatives of City employees is permitted. However, employees who are relatives must be employed in different departments within the City. In no case will it be allowed that one relative directly supervise another. Relatives of employees shall neither be given preference nor discriminated against. It is the goal of the City to prevent favoritism and conflict of interest. If two employees marry while both are employed in the same department in the City, it shall be necessary for one of the employees to transfer to a different department of the City, if possible, or resign from City service within six months after marriage. Section 8.04 Requisition and Sources of Recruitment The Department Head will notify the Personnel Officer or designee of a position which is, or will become, vacant. The appointing authority shall immediately notify the Personnel Officer or designee when a vacancy is to be filled. The Human Resources Office staff shall begin recruitment for the position utilizing the following: internal recruitment, external recruitment, reinstatement, transfer, ATTACHMENT 12 - Page 39 of 70 35 demotion, re-employment or eligibility list. Section 8.05 Provisional Appointment (See Employment Practices - Types of Appointments - Temporary - Provisional) Section 8.06 Job Announcements All examinations shall be announced in a bulletin which shall specify at least the major job responsibilities and desirable qualifications, and the selection process options of the City. Job announcements shall be shared with employees via the City’s email system. Recruitment methods shall be utilized as necessary to ensure that segments of the labor market available to the City are utilized. Section 8.07 Application Forms Applications shall be made only on forms provided by the Personnel Officer or designee. Such forms shall require information covering training, experience and educational background and other information deemed pertinent by the appointing authority. All applications must be received by the Personnel Officer or designee within a filing period prescribed by the Personnel Officer or designee. Section 8.08 Rejection of Application The Personnel Officer or designee may reject any applicant who: a. Does not possess the established minimum requirements for the advertised position. b. Has made a false statement concerning any material fact, or has practices or attempted practice of any deception or fraud in the application or examination, or in securing eligibility for appointment or promotion, regardless of when discovery was made. c. Fails to pass satisfactorily any medical or job-related examination which may be required. · d. Fails to meet special conditions of employment. Section 8.09 Examinations The selection of techniques used in the examination process shall be impartial and shall relate to those subjects which are related to the duties and responsibilities of the position. The examination process may consist of any of the following: written tests, oral interviews, performance tests, medical examinations and other job-related tests or any combination thereof. Examinations may be open or promotional at the discretion of the Personnel Officer or designee who shall consider the recommendations of the ATTACHMENT 12 - Page 40 of 70 36 Department Head. Section 8.10 Promotional Examinations Promotional examinations may be conducted whenever, in the opinion of the Personnel Officer or designee, the City determines it is in the City’s best interest to do so. Promotional examinations may include any of the selection techniques or any combination thereof mentioned above. Employees who meet the minimum qualifications and apply for open, promotional opportunities shall be given the opportunity to interview. Section 8.11 Open Examinations Open examinations may be conducted at the discretion of the Personnel Officer or designee after consultation with the Department Head. Section 8.12 Conduct of Examinations The Personnel Officer or designee shall determine the manner, method and by whom examinations shall be prepared and administered. The City may contract with any competent agency or individual for the performance of this service. In the absence of such a contract, the Personnel Officer or designee shall perform or delegate such duties. Section 8.13 Notification of Results Applicants who meet the requirements for admission to the eligibility list must be notified that they have achieved placement on the eligibility list. In addition, each non-selected applicant must be given notice of non-selection. Each candidate in an examination shall be given notice of the results within a reasonable amount of time. Section 8.14 Eligibility List An eligibility list shall be established following the examinations to determine the names of applicants who have achieved placement on the eligibility list. Such applicants shall be deemed as qualified for appointments pending further review by the appointing authority and other qualifying procedures, including reference checks, medical examinations and background investigations. Eligibility lists shall be valid and in effect for a period of six months up to a maximum of one year at the discretion of the Personnel Officer or designee. Eligibility lists shall be certified by the Personnel Officer or designee. ATTACHMENT 12 - Page 41 of 70 37 Section 8.15 Appointment From Eligibility List When an appointment is made from any eligibility list, the Personnel Officer or designee shall certify names from the appropriate list. The appointing authority shall further review the job- related qualifications of those certified before making selection decisions. Section 8.16 Re-Employment and Reinstatement With the approval of the appointing authority and the Personnel Officer or designee, a regular or probationary employee who has completed at least six months of probationary service and who has resigned with a good record and in good standing, may be reinstated to the former position, if vacant, or to a vacant position in the same or a comparable class within one (1) year from date of resignation. No credit for former employment shall be granted in computing salary, vacation, sick leave or other benefits except on the specific recommendation of the appointing authority and the approval of the Personnel Officer or designee. a. Re-employment List In the case of layoffs, a re-employment list is maintained when a vacancy occurs in the subject class; the appointing authority shall consider former employees from the list. The list shall be maintained for one year and as people are appointed to positions, their names are dropped from the list. Employees on the re- employment list are responsible for informing the City of current address, telephone number and availability for work. Section 8.17 Selection Selection from the eligibility list may be made from the list of qualified applicants at the direction of the appointing authority. Any candidate who appears on the list may be selected. Section 8.18 Physical Examination Prospective employees shall be required to pass a medical or physical examination as may be prescribed. The Personnel Officer or designee shall select a licensed medical doctor to perform the examination, the cost of which shall be borne by the City. The examination will determine the applicant's fitness to perform the job. Section 8.19 Background Investigation The Personnel Officer or designee will conduct a background check on the successful candidate(s) which will focus on job-related qualifications. Background investigations may include reference checks, checks of criminal records and any other valid background ATTACHMENT 12 - Page 42 of 70 38 checks deemed necessary by the Personnel Officer or designee. Section 8.20 Orientation All new employees will be required to attend an orientation program designed to inform new employees of City benefits, policies, and procedures. Such orientation will normally occur within the first week of the employee's employment. Regardless of the timing of the orientation, an employee’s benefit package will not be negatively impacted if a selection has been made and the proper paperwork turned in in accordance with the provisions of these rules. Section 8.21 Outside Employment An employee's first obligation is to the position held with the City of San Juan Capistrano. Employees may only accept other employment if: a. The work does not present a conflict of interest, provide undue liability for the City, cause an interruption in the work schedule assigned the employee, or create a disciplinary action. b. The employment is approved in writing by the Personnel Officer or designee. Employees shall receive approval of outside employment as indicated above prior to acceptance of that employment. Each notification shall be placed in the employee's personnel file. TYPES OF APPOINTMENT Section 8.22 Types of Appointments. Appointments to City service are divided into the following categories: (a) Probationary. Shall be the appointment of a person to a position which the employee must serve a probationary period of a certain designated time span to demonstrate competency for the position. (b) Regular. Shall be the appointment of a person who has satisfactorily completed his/her probationary period. (c) Acting. Shall be the temporary assignment of a regular or probationary employee to a higher level classification to fill a vacant position or to provide a replacement for an employee who remains on a leave of absence. Acting appointments may end at any time without advance notice or right of appeal. There is no change in benefits during an acting appointment, as benefits continue to be governed by existing bargaining unit agreements. The only ATTACHMENT 12 - Page 43 of 70 39 exception to this is when an employee is acting in a management or executive position, where the acting assignment does not provide overtime pay or compensatory time for hours worked over 40 in a work period, as the management and executive positions are exempt from overtime. (d) Temporary. Shall be the appointment in one of the categories listed below of a person to a position intended to be occupied on an intermittent basis to cover increased workloads of limited duration, necessary vacation relief and other situations involving fluctuating staff. Employees whose appointments are temporary shall not be covered by the City's group insurance, disability, retirement, or any other benefit programs, except as required by law, unless specifically authorized by the Personnel Officer or designee. Temporary employees do not serve probationary periods, and are at-will employees who serve at the pleasure of the appointing authority. Temporary appointments may be terminated at any time without cause and without any right of appeal. (1) Extra Help. Any appointment not exceeding six (6) months, or, exceeding six (6) months but regularly working a maximum of 20 hours per week. (2) Limited-Term. Any appointment generally for a period of more than six months, but less than 18 months working more than 1040 hours per fiscal year. (3) Emergency. To meet immediate needs of an emergency (i.e., civil disaster), but for only as long as the emergency exists. (4) Provisional. In the absence of individuals eligible or acceptable for appointment from appropriate eligibility lists, a provisional appointment may be made by the appointing authority of an individual who meets the training and experience requirements for the position. A provisional appointment shall be less than 12 months duration, and generally shall only last for the duration of the recruitment process. Extension beyond one year shall be subject to the approval of the City Manager. The City Manager shall specify the term of the extension. If the position is one that falls under representation by one of the City’s recognized employee associations, the appropriate association shall be informed of the extension and the reason for such extension. Such an appointment may be made during the period of suspension of an employee, or pending final action on proceedings to review suspension, demotion, or discharge of an employee. Provisional ATTACHMENT 12 - Page 44 of 70 40 appointments may also be made under other circumstances deemed for the good of the service by the Personnel Officer or designee. A provisional employee may be removed at any time without notice or rights to a hearing. Provisional employees may accrue fringe benefits as specifically authorized by the City Manager. As one form of at-will temporary employment, provisional appointments are not applicable to existing probationary or regular employees. (e) Part-Time. Shall be the appointment to a position that is less than or equal to 35 hours per week and is anticipated to last into the foreseeable future. (Benefited Part-Time employees (i.e., those hired prior to 7/1/18) shall receive benefits in accordance with the Personnel Rules and Regulations and shall be subject to the due process rights associated with “Regular” employment status. Part-time employees hired on and after 7/1/18 shall be at-will, do not serve a probationary period, and appointments may be terminated at any time without advance notice or right of appeal. Part-time employees hired on or after 7/1/18 shall only receive benefits as specifically called out in these Rules and Regulations or required by law. If a benefit noted in these Rules and Regulations does not specify that it applies to a part-time employee, then the benefit is not available to a part-time employee, unless specifically authorized by the Personnel Officer or designee.) RULE 9 PROBATIONARY PERIOD The probationary period shall be part of the screening process and shall be utilized for the following: a. To closely observe an employee's work. b. To provide for the most effective adjustment of an employee to the position. c. To further evaluate an employee t o d e t e r m i n e i f h e o r s h e meets the required standards of the job to which appointed. When an employee is appointed to a new position as a result of promotion, transfer or for any other reason, a new probationary period, as provided herein, shall begin at the time of appointment to the new position. ATTACHMENT 12 - Page 45 of 70 41 Section 9.01 Regular Appointment Following Probationary Period Original appointments to positions within the classified service shall be subject to a probationary period of no less than six months and no more than twelve months. Original appointments to positions within the Management Service shall be subject to a probationary period of twelve months. At the conclusion of the probationary period, the employee will be notified of regular status, provided the appointing authority approves the action. Achievement of regular employee status shall be based upon successful completion of a probation period, as determined by the Department Head and approved by the Personnel Officer or designee. For management employees, only in cases of exceptional performance by an exceptional employee, as documented in writing by the Department Head, will the Personnel Officer or designee consider requests to consider a change in status (from probationary to regular) prior to twelve months of service. Promotional appointments shall be subject to a probationary period of six months. Section 9.02 Release of Probationary Employee A probationary employee may be released at any time without the right of notice of an intent to reject or right of appeal or hearing during the probationary period. The appointing authority shall inform the Personnel Officer or designee of the appointing authority's desire to release a probationary employee. Notification of rejection shall be filed with the Personnel Officer or designee and a copy placed in the personnel file. An employee who does not receive a notice of release during the probationary period shall be deemed as passing probation and achieving regular status following the conclusion of the probationary period. The appointing authority, after consultation with the Personnel Officer or designee, may at the appointing authority's discretion extend the initial probationary period of an employee up to 12 months. Notice shall be given to the employee in writing. A rejected probationer serving as a result of an original appointment shall be dismissed from City service. An employee rejected during or at the conclusion of the probationary period following promotional appointment shall be reinstated to the position or class, or a comparable position or class, from which the employee was promoted and shall receive credit for time served during the promotional position. ATTACHMENT 12 - Page 46 of 70 42 Section 9.03 Performance Evaluation During Probationary Period A job performance evaluation during the employee probationary period shall be prepared within fourteen (14) calendar days of the mid-point of the probationary period. A performance evaluation can be done at any time during the probationary period. RULE 10 CHANGES OF EMPLOYMENT STATUS Section 10.01 Promotion Promotion refers to the movement of an employee from a position in one classification to another classification consisting of higher duties and responsibilities, requiring higher qualifications and providing a higher maximum rate of pay. Section 10.02 Promotion In-House Insofar as practical and consistent with the best interest of the City, as determined by the Personnel Officer, vacancies shall be filled by promotion from within whenever qualified employees exist. Promotion only classes will be established by the Personnel Officer in consideration of input from the Department Heads. Section 10.03 Requirements for Promotional Candidates Any employee whose most recent employee performance evaluation has an overall rating that is less than meets standards may not apply for a promotional opportunity. Only employees who received a satisfactory overall rating at the time of their last performance evaluation, or are not on a Performance Improvement Plan (PIP), may compete in promotional opportunities. Section 10.04 Rejection Following Promotion An employee rejected during or at the conclusion of the probationary period following promotional appointment shall be reinstated to the position from which promoted and shall be reinstated to the position or class, or comparable position or class from which promoted and shall receive credit for time served in the promotional position unless charges are filed and the employee is discharged in the manner provided for in these rules and regulations. Section 10.05 Reclassification Whenever a position is reclassified which is currently occupied by an incumbent who is satisfactorily performing the duties of the proposed position, the City shall place that incumbent in the ATTACHMENT 12 - Page 47 of 70 43 reclassified position, without the need to undertake a recruitment. Such reclassifications shall not result in demotion. A reclassification may occur when the essential duties of a position change due to new technology, new regulations or laws, reorganization within the city, or other compelling reasons that increase to a higher level the duties performed by the position. The City shall notify the Association whenever a reclassification is to occur to allow the Association to request to meet and confer over the impact and salary of the position. Out-of-Class grievances that result in position reclassifications shall also result in the reclassification of the employee, provided s/he has been satisfactorily performing the duties of the position for at least 6 months, as evaluated by the Department Head and approved by the Personnel Officer or designee. Section 10.06 Transfers A transfer occurs when an employee changes positions which are in the same classification. This may or may not involve a change of an employee's place of employment from one department to another. A transfer must be approved by the affected Department Head(s) and the Personnel Officer or designee. Section 10.07 Conditions for Transfer An employee, who does not possess the minimum qualifications for an open position, shall not be transferred to that position. A qualified employee may be transferred, provided the transfer has been approved by the employee's supervisor, the new supervisor and the Personnel Officer. Section 10.08 Employee Requested Transfers All employees may apply for a transfer. A request may be submitted only when a vacancy exists. The employee's request for transfer will be considered on the basis of the employee's qualifications for the vacant position and the best interests of the City. Requests for transfers must be received according to deadlines established by the Personnel Officer or designee. The City will consider lateral transfers and promotional opportunities to vacant positions within the same or similar job class. The employee requesting the transfer must have had a "satisfactory" rating on their last evaluation and meet the minimum ATTACHMENT 12 - Page 48 of 70 44 qualifications for the position. The City would have no obligation to hire any of the applicants for transfer. Section 10.09 Employer Initiated Transfers The City of San Juan Capistrano reserves the right to transfer its employees from one position to another or one department to another, if the transfer is necessary for the purpose of economy or efficiency. Section 10.10 Voluntary Demotion A regular employee may request a voluntary demotion to a vacant position in a class with a lower maximum salary rate provided the employee possesses the qualifications of that class. Such requests must be filed with the Personnel Officer or designee and require approval of the current Department Head and that of the Department Head of the vacant position. Section 10.11 Conditions for Layoff The City Manager, with the concurrence of the City Council, may abolish any position, because of material change in duties and organization, or shortage of work or funds. The employee holding such position or employment may be laid off without disciplinary action and without the right of appeal. No regular employee shall be laid off until all temporary and probationary employees holding positions in the same class in the department are separated first. Only those employees in the department assigned to the class in which the position is to be abolished shall be involved in this layoff procedure. Section 10.12 Notice of Layoff Employees to be laid off shall be given at least fourteen (14) calendar days’ notice. Section 10.13 Order of Layoff Seniority shall govern the layoff of employees except in the case where there are two or more employees having equal seniority (same hire date). Employee performance will then govern the layoff. Seniority shall be determined as total number of years of full-time employment with the City of San Juan Capistrano. Section 10.14 Layoff Procedure Employees shall be laid off in reverse order of seniority and in consideration of performance. In cases where there are two or more employees having equal seniority in the affected class, such employees shall be laid off on the basis of the last performance ATTACHMENT 12 - Page 49 of 70 45 evaluation report in that class as determined by the City Manager. Section 10.15 Re-employment List The names of persons laid off in accordance with these rules shall be entered on a re-employment list for one year, except that persons appointed to an authorized full-time position shall, upon such appointment, be dropped from the list. When a vacancy occurs in the subject class, the appointing authority shall consider the former employees from the re- employment list. It is the responsibility of the employee on a re- employment list to keep the City informed of his/her current address and telephone number, and availability for work. Section 10.16 Termination - Resignation An employee wishing to leave the City in good standing shall file with the immediate supervisor at least two (2) weeks before leaving the City a written resignation stating the effective date and reason(s) for leaving. The resignation shall be forwarded by the Department Head to the Human Resources Office and City Manager. Section 10.17 Exit Interviews Employees may receive exit interviews upon request when separating from employment. The interview will be conducted by the Personnel Officer's representative. When an employee simply telephones from the outside to resign, the call should be referred to the Human Resources Office. Section 10.18 Performance Evaluation Each supervisor or Department Head having immediate charge of an employee or group of employees, shall make or cause to be made, on forms provided by the Personnel Officer or designee, performance evaluation reports for all subordinates. Performance evaluations shall be considered in actions relating to transfer, promotion, demotion or changes affecting the status of an employee. Section 10.19 Timing of Performance Evaluations The employee performance evaluation shall be completed by the appointing authority within specific time frames set by the Personnel Officer or designee. The evaluation shall be signed and dated by the supervisor, Department Head and employee, and copies provided to appropriate personnel. An employee may examine the employee’s own performance evaluation on file in the Human ATTACHMENT 12 - Page 50 of 70 46 Resources Office. RULE 11 DISCIPLINARY ACTION Section 11.01 Application The appointing authority shall apply necessary and appropriate disciplinary action whenever an employee fails to meet the required standards of conduct or performance. Discipline is the enforcement of conformity to policies, rules and regulations and other administrative or legal requirements or practices designed to maintain a standard of cooperation and conduct necessary to carry out the service mission of the City organization successfully. The disciplinary action, when taken, shall be documented in such a manner as to be defendable at review and/or upon filing of a grievance by the disciplined employee. Section 11.02 Types of Disciplinary Action Disciplinary actions include counseling, oral warning, written reprimands, suspensions, demotions and discharge as defined below: a. Counseling – This is the lowest form of corrective action. It consists of any supervisory-level staff member providing oral feedback to an employee on what is expected. A supervisor shall communicate that counseling is taking place in regards to disciplinary action. b. Oral Warning - In the event that a s u p e r v i s o r , m a n a g e r , o r the appointing authority determines that a deficiency in performance or conduct is not of sufficient magnitude to warrant a more formal disciplinary action, and often- times after an employee has received counseling as noted above, an oral warning may be given to the employee, which should include examples of corrective actions which should be taken to improve performance or conduct in question. A confidential written record shall be made of such conferences with a copy provided to the employee. The written record stays in a supervisor’s file, unless it is used to substantiate higher level discipline in the future. c. Written Reprimand – A written statement from a manager or the appointing authority to a subordinate of an action, which meets any of the grounds for disciplinary action listed in these rules. After verbal consultation, an official notification in writing by the manager or the appointing authority to the employee that there is cause for dissatisfaction with his/her services and that further ATTACHMENT 12 - Page 51 of 70 47 disciplinary action may be taken if the job performance does not improve. d. Suspension - The temporary separation of an employee from City service without pay, for disciplinary purposes. e. Demotion - A change in employment status from one position to another having a lower rate of pay and/or a change in duties which are allocated to a class having a lower maximum rate of pay. The demotion may be temporary or permanent. f. Discharge - The s e p a r a t i o n of an employee from City service on disciplinary grounds by the appointing authority. Section 11.03 Causes for Disciplinary Action The causes of disciplinary action include, but are not limited to, the following: ● Insubordination, which shall consist of violation of any official regulation or order or failure to obey any proper directions made and given by a supervisor in the course of employment. ● Incompetence, inability or failure to perform the duties required by the position, as well as willful neglect of official duty. ● Gross carelessness in the discharge of assigned duties. ● Substance abuse, consumption of alcoholic beverages during working hours or reporting to work in a state of intoxication. ● Presentation or use of known false information in any manner to commit or attempt to commit fraud, or the falsification or unauthorized alteration of City documents or records. ● Repeated tardiness or excessive absences, or the improper or unauthorized use of leave privileges or benefits. ● Misuse of time on the job. ● Careless, negligent, improper and unauthorized use of City equipment, property or funds for private or personal purposes. ● Unauthorized discussion or release of confidential informational documents or records. ATTACHMENT 12 - Page 52 of 70 48 ● Violation of the Personnel Ordinance or rules and regulations or a promulgated department rule, regulation or policy. ● Use of narcotics or drugs, which impair job performance, except as prescribed by a licensed physician. ● Refusal or failure to promptly or properly report an injury or disability arising from or in the course of employment. ● Engaging in unauthorized or incompatible employment elsewhere. ● Fighting, coercing, interfering with or threatening injury or harm to another employee or member of the public, or challenging such an individual to a fight. ● Dishonesty. ● Conviction for any felony or misdemeanor. ● Possession of explosives, firearms, or a weapon of any type or hazardous substances while on the job or on City property, unless specifically authorized. ● Failure to hold and maintain necessary licenses, certifications, or endorsements. ● Stealing, willful damage, willful abuse or willful destruction of City property or the property or equipment of another employee or member of the public. ● Discourteous treatment of the public or co-worker. ● Leaving regularly assigned work location without the supervisor’s knowledge and permission, except to take usual breaks and lunch periods or to perform assigned work duties. ● Political campaigning of any kind while in a City uniform or using one’s official City title or position in connection with political campaign literature or activities. ● Any form of harassment or discrimination. ● Unauthorized absence. ATTACHMENT 12 - Page 53 of 70 49 Section 11.04 Disciplinary Procedures When a regular employee is to be suspended, demoted or discharged, a preliminary written notice of the proposed action is to be prepared by the appropriate staff member and reviewed by the Human Resources Office, and then delivered to the employee. The written notice shall include: a. The reasons for the proposed action. b. The charges being considered. c. The proposed disciplinary action to be taken. d. A statement advising that before the proposed disciplinary action takes effect the employee has a right to respond either orally or in writing, at a Skelly Conference to be held approximately fourteen (14) calendar days from receipt of the written notice. e. A statement advising the employee of the right to a representative at the Skelly Conference. f. A copy of the documents or materials that the proposed action is based on. The employee is entitled to be represented at any meeting concerned with potential disciplinary action when the employee's presence is required at said meeting. Any supervisor may counsel or give an oral warning to a direct report. A manager may counsel, warn, reprimand, and recommend suspension, demotion or discharge. The appointing authority may counsel, warn, reprimand, suspend, demote, or discharge an employee. To help maintain consistency in the administration of corrective action throughout the organization, an oral warning should be reviewed by Human Resources. Any higher level discipline above an oral warning must be reviewed by Human Resources before it is issued to an employee. Section 11.05 Notification of Decision Within ten (10) working days after the employee has had the opportunity to respond, the appointing authority shall notify the employee of any disciplinary action to be taken and the effective date. Section 11.06 Appeal of Decision The employee may appeal the decision within ten (10) working days ATTACHMENT 12 - Page 54 of 70 50 of the notification of disciplinary action. The appeal may be made directly to the City Manager or an impartial arbitrator/hearing officer may be utilized to provide an advisory opinion to the City Manager prior to the submittal of the appeal to the City Manager: The procedure for a disciplinary appeal hearing is found in Administrative Policy #228, Rules of Procedure and Evidence for Disciplinary Appeal Hearings. a. Advisory Arbitration/Hearing Officer The impartial arbitrator/hearing officer shall be selected by the employee and designated representative and the City. The cost of the arbitrator/hearing officer, if any, shall be borne equally by the employee and the City. The arbitrator/hearing officer shall submit a written advisory opinion to the City Manager who shall make the final and binding decision to sustain, revoke or modify the decision of the appointing authority. b. City Manager An employee may submit the appeal directly to the City Manager. Within ten (10) working days after submission of the appeal or receipt of the written advisory opinion of the arbitrator/hearing officer, the City Manager shall make the final and binding decision to sustain, revoke or modify the decision of the appointing authority who took the disciplinary action against the employee. Section 11.07 Temporary Absence with Pay Notwithstanding the provisions of this section, upon the recommendation of the appointing authority, the City Manager or designee may approve the temporary assignment of an employee to the status of absent with pay pending completion of any investigation(s) or hearing(s) as may be required to determine if disciplinary action is to be taken. Such status shall be conditioned such that the employee remains available and in daily telephone contact with the employer. RULE 12 GRIEVANCE PROCEDURE Section 12.01 Matters Subject to Grievance Procedures A grievance shall be initiated through an informal first step when the employee notifies the supervisor verbally of his/her contention that the City has violated or misapplied a specific obligation expressed and/or written in the Personnel Rules and Regulations of the City. Human Resources Office staff is available to assist Department Heads in such matters as the interpretation of Rules, documentation procedures and preparation of notices as requested. ATTACHMENT 12 - Page 55 of 70 51 Section 12.02 Notification of Grievance The second step in the grievance process shall be a written notice filed in a timely manner, on a form provided by the City, which shall include at a minimum: a. Nature of the grievance; b. Date when the incident occurred; c. Description of the incident; d. Rule violated; and, e. Specific remedy sought by the employee. Section 12.03 Steps in the Grievance Process First Step Within ten (10) working days after the occurrence of the incident involved in the grievance, the employee may initiate the grievance process by discussing the matter informally with his/her immediate supervisor. An attempt shall be made to resolve the grievance between the employee and the immediate supervisor. The supervisor shall deliver an oral or written response within ten (10) working days after submission of the grievance. Second Step If the grievance is not satisfactorily resolved in the first step, the grievance may be submitted to the supervisor's supervisor, if any, within the department organization within ten (10) working days after the immediate supervisor's answer is received by the employee. After an attempt to resolve the grievance between the employee and his/her designated representative, if any, the intermediate supervisor shall deliver a written answer within ten (10) working days after submission of the grievance. If there is no intermediate supervisor, the grievance shall go directly to the Department Head. Third Step If the grievance is not satisfactorily resolved in the first and second steps, it shall be submitted in writing to the employee's Department Head within ten (10) working days after the intermediate supervisor’s answer is received by the employee. The Department Head shall meet with the employee and his/her designated representative, if any, within ten (10) working days after submission of the grievance to the Department Head. The Department Head shall review the grievance and may affirm, reverse or modify the disposition made at the first and second steps and shall deliver a written answer to the employee within ten (10) working days after said meeting. Section 12.04 Appeal of Decision If the grievance is not satisfactorily resolved, the employee may ATTACHMENT 12 - Page 56 of 70 52 appeal the decision of the Department Head to the City Manager. At the option of the employee, the grievance may be submitted: a. Directly to the City Manager, or b. To an impartial arbitrator who will provide an advisory opinion to the City Manager prior to the consideration of the grievance by the City Manager. c. To a mediator from the State Mediation and Conciliation Service who will provide findings and recommendations to the City Manager prior to consideration of the grievance by the City Manager. When the appeal is submitted to the City Manager, it shall specify whether the employee desires to have the appeal considered directly by the City Manager or reviewed first by an impartial arbitrator. Such submission must occur within ten (10) working days after the Department Head's written answer is received. Section 12.05 Advisory Arbitration An employee may elect to use an impartial arbitrator to provide an advisory opinion to the City Manager prior to the consideration of the grievance by the City Manager. After a hearing on the merits of the grievance and considering evidence from all parties concerned, the impartial arbitrator shall submit a written advisory opinion to the City Manager. Within ten (10) working days after receipt of the written advisory opinion of the impartial arbitrator, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver a written decision to the employee within ten (10) working days after said meeting. The City Manager's decision shall conclude the administrative appeals procedure. If an employee elects to use an impartial arbitrator, the arbitrator shall be selected jointly by the employee and his/her designated representative, if any, and the City. The cost of the arbitrator, if any, shall be born equally by the employee and the City. Section 12.06 State Mediation An employee may elect to use a certified mediator from the State Mediation and Conciliation Service to provide findings and recommendation to the City Manager prior to the consideration of the grievance by the City Manager. After a hearing on the merits of the grievance and considering evidence from all parties concerned, ATTACHMENT 12 - Page 57 of 70 53 the certified mediator shall submit a written summary of his/her findings and recommendations to the City Manager. Within ten (10) working days after receipt of the written summary of findings and recommendations from the certified mediator, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver a written decision to the employee within ten (10) working days after said meeting. The City Manager's decision shall conclude the administrative appeals procedure. If an employee elects to have a certified mediator from the State Mediation and Conciliation Service, the certified mediator shall be selected jointly by the employee and his/her designated representative, if any and the City. The cost of the certified mediator, if any, shall be born equally by the employee and the City. Section 12.07 City Manager An employee may elect to submit the grievance directly to the City Manager for a final and binding decision. Within ten (10) working days after submission of the grievance to the City Manager, the City Manager shall meet with the employee and his/her designated representative, if any, and other appropriate persons to assess the grievance. The City Manager may affirm, reverse or modify the disposition of the grievance. The City Manager shall deliver written decision to the employee within ten (10) working days after said meeting, and such decision shall conclude the administrative appeals procedure. Section 12.08 Extension of Time Any or all of the time limitations mentioned above with reference to filing and response times may be extended by mutual agreement between the employee and the City. RULE 13 SAFETY Every employee is entitled to a safe and healthful place in which to work. To this end, reasonable effort will be made in the interest of accident prevention, fire protection and health preservation. The City will maintain a safe and healthful work place. It will provide safe working equipment, necessary personal protection, and, in the ATTACHMENT 12 - Page 58 of 70 54 case of injury, provide first-aid as appropriate. The City will exert every effort to abide by all regulations as they pertain to governmental agencies which are set forth in Federal and State standards, and good practices as dictated by location and circumstances. It is part of the employee's responsibility to identify safety concerns and report them immediately to the employee's supervisor so that the City may investigate and provide corrective action as necessary. Section 13.01 No Smoking in City Vehicles In order to preserve the health, safety and welfare of employees, the City of San Juan Capistrano hereby prohibits smoking in City vehicles. In addition to cigarettes, this includes the use of smokeless tobacco, e-cigarettes, and any other technology-based instrument or practice involving any smoking or tobacco-related product. RULE 14 Harassment and Discrimination Prevention. It is the policy of the City of San Juan Capistrano to assure equal employment opportunity and fair employment practices to all persons. The law holds the City responsible to ensure a workplace free of discrimination and harassment. The City shall be proactive in its prevention efforts. Harassment and/or discrimination of an employee by a supervisor, management employee or co-worker on the basis of race, color, religion, national origin, ancestry, physical or mental disability, equal pay/compensation, medical condition, marital status, sex, sexual orientation, pregnancy, childbirth, breastfeeding or related medical conditions, gender identity, gender expression, genetic information, AIDS/HIV, military or veteran status, political affiliations or activities, status as a victim of domestic violence, assault, or stalking, association with a member of a protected class, engagement in protected activity, or age will not be tolerated. Harassment by supervisory personnel is particularly serious and will not be tolerated. The City is committed to a policy of preventing discrimination and harassment in all employment practices including work assignments, recruitment, selection, promotions, transfers, training, compensation, benefits and discipline. The City resolves to develop and monitor programs and processes that ensure constant and consistent adherence to this policy. All City employees are expected to adhere to this policy and to fully cooperate in the implementation of the goals and objectives ATTACHMENT 12 - Page 59 of 70 55 established. In addition, the City requires that all its contractors, subcontractors and vendors not harass or discriminate in the employment and treatment of persons. Violation of Policy Violation of these policies will generally constitute grounds for discipline, up to and including discharge. It is important that all employees understand the City's position relative to this subject. All executives, managers, and supervisors are responsible for compliance with these policies. It shall be a violation of City policy for an employee to retaliate in any way against an employee for submitting a complaint of discrimination and/or harassment and/or retaliation or cooperating in an investigation involving same. Harassment Harassment includes, but is not limited to: Verbal Harassment - For example, epithets, derogatory comments or slurs on the basis of race, religious creed, color, national origin, ancestry, physical or mental disability, marital status, sex, sexual orientation or age. Physical Harassment - For example, assault, impeding or blocking movement, or any physical interference with normal work or movement when directed at an individual on the basis of race, religious creed, color, national origin, ancestry, physical or mental disability, marital status, sex, sexual orientation or age. Sexual Harassment - For example, unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature which is conditioned upon an employment benefit, unreasonably interferes with an individual's work performance or creates an offensive or hostile work environment. Harassment in which a supervisor or other authority demands sexual favors in exchange for job benefits is termed "quid pro quo" harassment. Sexual harassment can be identified as something deliberate, as explicit, coercive sexual behavior which infers an attempt to control, influence or affect the career, salary, job or working conditions of another employee. Sexual harassment can also be identified as conduct of a sexual nature that is neither explicit nor even specifically directed at the victim, but rather creates a hostile or offensive work environment. Some subtle forms of sexual harassment are, referring to women as "girls," men as "boys," or using demeaning, inappropriate, and unwelcome terms of endearment while at work; comment(s) directed at the way a person looks, rather than ATTACHMENT 12 - Page 60 of 70 56 commenting on the quality of his/her work; interrupting a person who is talking about work with comments about his/her appearance or physical attributes; eye contact, staring or gazing at a person in a way that implies a sexual message or relationship; flirting; teasing, touching, joking propositions, or comments filled with sexual innuendo or double meanings; telling (a) joke(s) with a sexual meaning, tone, or implicating; displaying (a) cartoon(s), calendar(s), picture(s), desk object(s), or pin- up(s) which convey a sexual message, tone, or implication or make a joke of another person's appearance. Discrimination/Harassment Complaint Procedure Confidentiality Efforts will be made to protect the privacy of the parties involved in a discrimination or harassment complaint. Files pertaining to complaints handled under this process will be handled with a high a degree of confidentiality. They will be available on a "need to know" basis as determined by the Human Resources Manager or a designee thereof. Identities should not be disclosed except to the extent necessary to continue the investigation. Statements made by employees should not be disclosed to other employees except as necessary to elicit specific, relevant and necessary information from the employee. Informal Complaint Process An employee who feels he or she was subject to discrimination or harassment may discuss the matter with the immediate supervisor immediately. If the employee chooses, he/she may elect to be represented or may choose to represent him/herself. The right to representation shall not limit supervisory authority to take appropriate, immediate corrective action when circumstances warrant. If at any time the employee does not believe the problem has been satisfactorily resolved or is not comfortable with proceeding through the chain-of-command, the employee may present the complaint to the Human Resources Manager. It is the responsibility of the person receiving the complaint to: A. Counsel the employee and outline the options available under the City's discrimination/harassment prevention policies and complaint procedures; and B. Assist the employee in immediately bringing the matter to the attention of the appropriate departmental official(s) to resolve the complaint at the earliest possible date; and C. Advise the employee that efforts will be taken to maintain confidentiality, however, depending on the information concerning the complaint, it may be necessary to take immediate and corrective action after having been made aware of the situation. If the employee does not agree with the proposed resolution of the complaint, he/she ATTACHMENT 12 - Page 61 of 70 57 may then file a formal complaint. Nothing shall prohibit an employee from bypassing the informal complaint process and filing a formal complaint. Nothing shall prohibit an employee from filing a complaint with the federal Equal Employment Opportunity Commission or the State Department of Fair Employment and Housing before or after filing a complaint with the City. Formal Complaint Process An employee who feels he/she has been harassed or discriminated against in terms of the City's Policy has the options of filing a formal complaint with 1) either the Department Head of the complainant or of the accused or 2) the Human Resources Manager. (Said official is herein referred to as the Complaint Investigator.) If the Human Resources Manager is not designated as the Complaint Investigator, he/she shall work with the Complaint Investigator throughout the investigation to clarify City policies and assist ensuring proper conduct of the investigation. This initial report can be oral or written. In the case of an oral report, the official will gather the pertinent information concerning the allegation and prepare a written statement constituting the complaint for the approval and signature of the complainant. The investigator shall ask the complainant what action would resolve the issue. The written and signed statement of the complaint will initiate a formal investigation into the matter. The City Manager's Office shall be notified that a complaint has been filed and that an investigation is proceeding. Copies of the signed statement will be made available to the appropriate Department Head(s) and the Human Resources Manager. Within seven (7) working days of receipt of the signed, written complaint, the individual conducting the investigation will proceed with it as follows: A. The Complaint Investigator shall contact the person(s) who allegedly engaged in discrimination or harassment and inform him or her of the basis for the complaint and give the individual and his/her representative an opportunity to respond. The person accused shall have a right to have a representative present. The Complaint Investigator will give the accused a copy of the complaint. The Complaint Investigator will make a record of any response. The Complaint Investigator will give appropriate warning to the accused regarding future contact with the complainant. B. That person shall then have seven (7) working days to respond to the complaint orally, in writing, or both. The response shall be directed to the Complaint Investigator. In the case of an oral response, the Complaint ATTACHMENT 12 - Page 62 of 70 58 Investigator will prepare a written statement for the approval and signature of the person who allegedly engaged in discrimination or harassment. C. Upon receipt of the response, the Complaint Investigator will review, research and investigate, as necessary, to determine whether discrimination or harassment has occurred. The investigation may be expanded to include interviews with witnesses and supervisors as appropriate. The Investigator shall maintain a confidential record of information gathered in the investigation. The investigation shall be completed as quickly as possible. The Investigator has a duty to act in a reasonably timely manner given the circumstances and avoid delay. D. Within seven (7) working days of completion of the investigation, the Department Head(s) and Human Resources Manager will consult to review the proposed findings and consider the appropriate action to be taken. Action may include discipline, up to and including discharge. Files should be made available to the accused employee, if there is a recommendation for discipline in conformity with the Skelly decision. The Department Head of the accused shall have the authority to determine what action, if any, will be taken after such consultation. The Human Resources Manager's review shall be for the purpose of ensuring compliance with the law and consistency with City policy. A Department Head or the Human Resources Manager will be excluded from this procedure in cases where he/she is named as a person responsible for the alleged discrimination/harassment. In such cases, the authority to consider what action to take shall rest with the remaining officers and the Assistant City Manager. In such cases, the Assistant City Manager shall have the authority to determine what action will be taken. E. The Department Head shall notify both parties, in writing, of the findings and conclusions with copies to the Human Resources Manager, other Department Head, if appropriate, and the City Manager's Office. This decision shall be final unless the employee has a right to appeal the action taken against him/her under the City rules or a Memorandum of Understanding. The complainant shall be notified of the corrective action taken with due respect for the privacy rights of the affected employee(s). F. The person who allegedly engaged in discrimination, harassment, or retaliation retains all rights provided for in the Memorandum of Understanding and the City rules. RULE 15 ATTENDANCE AND ABSENTEEISM Attendance Employees shall be in attendance in accordance with these rules and ATTACHMENT 12 - Page 63 of 70 59 regulations governing hours of work, leaves and holidays. All departments shall maintain attendance records for all employees. Each employee will be at work and ready to work at starting time and will work until quitting time. Habitual tardiness will be a matter for disciplinary action. Absenteeism Any employee who is absent from work shall be responsible for notifying their supervisor in a timely manner indicating when the employee will report back to work. Any employee who fails to comply with this rule will be subject to disciplinary action. RULE 16 ALCOHOL AND DRUG ABUSE POLICY Policy It is City of San Juan Capistrano policy that employees shall not be impaired by, or have in their biological system, or be in possession, of alcohol or drugs while on City property, at work locations, or while on duty or in pre-arranged on-call status, and that employees shall not sell or provide drugs or alcohol to any other employee or person while on duty or in pre-arranged on-call status. While use of validly prescribed medications and drugs does not violate this policy per se, failure by an employee to notify his/her supervisor, before beginning work, when taking medications or drugs which could foreseeably interfere with the safe and effective performance of duties, or the operation of City equipment, can result in discipline up to and including discharge. In the event there is a question regarding an employee's ability to safely and effectively perform assigned duties while using such medications or drugs, clearance from a qualified physician may be required. The City reserves the right to search, without employee consent, all work areas and property in which the City maintains control or joint control with the employee. Otherwise, the City may notify appropriate law enforcement agencies that an employee may have illegal drugs in his or her possession or in an area not jointly or fully controlled by the City. Employees reasonably believed to be under the influence of alcohol or drugs may be required to submit to an alcohol and/or drug analysis and may be prevented from engaging in further work and shall be detained for a reasonable time until he or she can be safely transported ATTACHMENT 12 - Page 64 of 70 60 from the work site. Refusal to immediately submit to an alcohol and/or drug analysis when requested by City management or law enforcement personnel, or refusal to submit to a search of personal properties if requested by law enforcement personnel, may constitute insubordination and be grounds for discipline up to and including discharge. The City of San Juan Capistrano is committed to providing reasonable accommodation to those employees whose drug or alcohol problem classifies them as disabled under federal and/or state law. The City of San Juan Capistrano is concerned with the well-being and safety of all its employees. It will assist employees who voluntarily seek help for alcohol or drug problems. Employees should contact their supervisor or the Personnel Officer or designee for additional information. Application This policy applies to all employees of the City of San Juan Capistrano. This policy applies to alcohol and drugs, including all substances, drugs, or medications, whether legal or illegal, which could impair an employee's ability to effectively and safely perform the functions of the job. EMPLOYEE RESPONSIBILITIES An employee must: * not report to work or be subject to duty while his/her ability to perform job duties is impaired due to on or off duty alcohol or drug use; * not possess or use alcohol or impairing drugs, including illegal drugs and prescription drugs without a prescription, during working hours or while subject to duty, on breaks, during meal periods or at any time while on City property or in City vehicles; * when so requested by a City representative, surrender possession of alcohol or impairing drugs, including illegal drugs and prescription drugs for which no valid prescription is available; * not directly or through a third party sell or provide drugs or alcohol to any ATTACHMENT 12 - Page 65 of 70 61 person, including any employee, while either or both employees are on duty or subject to being called to duty; * submit immediately to a search and an alcohol and drug test when requested by a City representative, upon reasonable suspicion; * notify his/her supervisor, before beginning work, when taking medications or drugs, prescription or non-prescription, which may interfere with the safe and effective performance of duties or operation of City equipment; and, * provide, within 24 hours of request, bona fide verification of a current valid prescription for any potentially impairing drug or medication identified when a drug screen/test is positive. The prescription must be in the employee's name. * report all breaches of this policy. SUPERVISORY RESPONSIBILITIES AND GUIDELINES * Supervisors are responsible for reasonable enforcement of this policy. * Supervisors may request that an employee submit to a drug and/or alcohol test when a supervisor has a reasonable suspicion that an employee is intoxicated or under the influence of drugs or alcohol while on the job or on pre-arranged on-call status. "Reasonable suspicion" is a belief based on objective facts sufficient to lead a reasonably prudent supervisor to suspect that an employee is under the influence of drugs or alcohol so that the employee's ability to perform the functions of the job is impaired or so that the employee's ability to perform his/her job safely is reduced. For example, any of the following, alone or in combination, may constitute reasonable suspicion: Slurred speech; Alcohol odor on breath; Unsteady walking and movement; An accident involving City property, where it appears the employee's conduct is at fault; Physical altercation; Verbal altercation; Atypical behavior; ATTACHMENT 12 - Page 66 of 70 62 Possession of alcohol or drugs; Information obtained from a reliable person with personal knowledge. * Any supervisor requesting an employee to submit to a drug and/or alcohol test will document in writing the facts constituting reasonable suspicion that the employee in question is intoxicated or under the influence of drugs. * The authority for enforcement and testing under this policy is limited to an employee's chain-of-command supervisors, including direct supervisor, division manager, Department Head and City Manager or his designee. * Upon suspicion that an employee is impaired, the· supervisor must request that another supervisor (in the employee's chain-of- command, whenever possible) be present to witness the signs of impairment and concur with the need for testing. * Employees refusing an order to submit to a drug and/or alcohol analysis upon request shall be reminded of the requirements and disciplinary consequences of this policy. Where there is reasonable suspicion that the employee is under the influence of alcohol or drugs, the supervisor shall arrange for the employee to be safely transported home. * No employee shall be physically searched on their person nor shall the personal possession of employee be searched without the freely given consent of, and in the presence of, the employee. * Department Heads or designee shall be notified when there is reasonable suspicion to believe that an employee may have illegal drugs in his or her possession or in an area not jointly or fully controlled by the City. If the Department Head or designee concurs that there is reasonable suspicion of illegal drug possession, the Department Head shall notify the appropriate law enforcement agency. PHYSICAL EXAMINATION AND PROCEDURE The drug and/or alcohol test may test for any substance which could impair an employee's ability to effectively and safely perform the functions of his/her job, including, but not limited to, prescription medications, alcohol, heroin, cocaine, morphine and its derivatives, P.C.P., methadone, barbiturates, amphetamines, marijuana and other cannabinoids. Exhibit "A" describes the method in which the initial test will be conducted, how the sample will be processed after the drug and/or alcohol test is ATTACHMENT 12 - Page 67 of 70 63 completed, and how a confirmatory test after an initial positive result will be performed. Exhibit "A" is subject to periodic review and updates for compliance with legal and/or medical guidelines. RESULTS OF DRUG AND/OR ALCOHOL ANALYSIS During Alcohol/Drug Tests A positive result from a drug and/or alcohol analysis may result in disciplinary action, up to and including discharge. If the drug screen is positive, the employee must provide within 24 hours of request bona fide verification of a valid current prescription for the drug identified in the drug screen. The prescription must be in the employee's name. If the employee does not provide acceptable verification of a valid prescription, or if the prescription is not in the employee's name, or if the employee has not previously notified his or her supervisor, the employee will be subject to disciplinary action up to and including discharge. If an alcohol or drug test is positive for alcohol or drugs, the City shall conduct an investigation to gather all facts. The decision to discipline or discharge will be carried out in conformance with Rule 11 of the City of San Juan Capistrano Personnel Rules and Regulations. Confidentiality Laboratory reports and test results shall not appear in an employee's general personnel folder. Information of this nature will be contained in a separate confidential medical folder that will be securely kept under the control of the Personnel Officer. The reports or test results may be disclosed to City management on a strictly need-to-know basis and to the tested employee upon request. Disclosures, without patient consent, may also occur when: (1) the information is compelled by law or by judicial or administrative process; (2) the information has been placed at issue in a formal dispute between the employer and employee; (3) the information is to be used in administering an employee benefit plan; (4) the information is needed by medical personnel for the diagnosis or treatment of the patient who is unable to authorize disclosure. ATTACHMENT 12 - Page 68 of 70 64 EXHIBIT "A" DRUG TESTING PROCEDURE Employee must present himself/herself at South Coast Family Clinic with a written request from the City of San Juan Capistrano's Personnel Officer or his designee for all drug testing. The request must include the printed name, title, and signature of the person authorized to order drug testing on behalf of the City. The employee must show some form of picture identification, and must complete all necessary registration/consent materials at the time of presentation at the clinic. COLLECTION PROCESS The employee will be taken to the laboratory by a South Coast Family Clinic medical assistant where the employee will receive a specimen collection bottle. Employee will be instructed to wash his/her hands. Medical assistant will turn off water to the restroom. Medical assistant will introduce indicator dye to the toilet for evidence of specimen tampering. Employee will fill the specimen bottle with at least 60 ml of urine. Medical assistant will then read the temperature of the specimen within four (4) minutes to verify that it is a fresh specimen. If the temperature of the specimen is not within 90-100 degrees F, the patient must provide a fresh sample. SPLIT SAMPLE PROCEDURE: Medical assistant will pour the specimen into the first bottle which is to be used for mandatory testing, and requires 60 ml of urine. Any additional urine specimen will be poured into the second specimen bottle to be used as a split sample specimen. If there is no additional urine available for the second specimen, the first shall nevertheless be processed for testing. · Medical assistant will secure the caps on the specimen bottles and affix the specimen bottle seals over the caps and down the sides of the specimen bottles in view of the employee. ATTACHMENT 12 - Page 69 of 70 65 Medical assistant will record the date on the specimen bottle seals. Employee will initial the specimen bottle seals. Employee will then read and complete the Donor Consent portion of the lab requisition, including signature, date and any medications of the employee may have taken in the last 30 days. Employee will complete, sign, and provide daytime telephone number on the certification portion of the lab requisition in case lab has any last minute questions. Federal Regulations prohibit disclosure of the employee's identity to the laboratory. Medical assistant will complete all appropriate collection site information on the lab requisition form. The Chain of Custody section will be completed by both the employee and the medical assistant. (Every time the specimen is handled, transferred, or placed into storage prior to being packaged for shipment, every individual must be identified and the date and purpose of change recorded.) Upon completion of the collection process, the employee will be given a copy of the Drug of Abuse Test Request, the employer will be sent a copy, and the collection site will retain a copy. Medical assistant will place the specimen bottles and all other copies of the requisition form in the shipping container. Medical assistant will secure the shipping container and his/or her initials and date will be written on the shipping container seal. The specimen will be overnight shipped to the appropriate laboratory for testing. Test results will be sent directly to the City of San Juan Capistrano. ATTACHMENT 12 - Page 70 of 70 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO AMENDING RESOLUTION 19- 11-05-03, THE CITY’S CLASSIFICATION AND COMPENSATION PLANS, IMPLEMENTING SALARY TABLES FOR FISCAL YEARS 2021-22, 2022-23, AND 2023-24 FOR THE CLASSIFIED EMPLOYEES ASSOCIATION, THE MANAGEMENT AND PROFESSIONAL EMPLOYEES ASSOCIATION, AND PART-TIME STAFF AND CREATING A NEW JOB CLASSIFICATION OF ENVIRONMENTAL PROGRAMS ANALYST WHEREAS, the City Council of the City of San Juan Capistrano is authorized and directed under the City’s Personnel Rules and Regulations to adopt and amend a Personnel Classification and Compensation Plan in order to administer the City’s Personnel Management System; and, WHEREAS, the City desires to amend the Personnel Classification and Compensation Plan related to the fiscal years 2021-22, 2022-23, and 2023-24 salary tables for the Classified Employees Association, Management and Professional Employees Association, and Part-Time Staff; and, WHEREAS, the City desires to create a new job classification of Environmental Programs Analyst and assign it to the Management and Professional Employees Association (MPEA); and, WHEREAS, the City’s Personnel Rules and Regulations provide that adoption or amendment of the City’s Personnel Classification and Compensation Plans shall be made by resolution of the City Council. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby amend Resolution No. 19-11-05-03, the City’s Personnel and Classification and Compensation Plans, to reflect the attached salary tables for the Classified Employees Association (Exhibit A), the Management and Professional Employees Association (Exhibit B), and Part-Time Staff (Exhibit C), beginning July 1, 2021; and authorizes the creation of the Environmental Programs Analyst job classification at salary Grade 56 ($7,662-$9,313) of the MPEA salary schedule, authorizes one position (1 FTE), and approves the job description (Exhibit D). APPROVED AND ADOPTED this 1st day of June, 2021. ________________ JOHN TAYLOR, MAYOR ATTACHMENT 13 - Page 1 of 17 ATTEST: _____________________________ MARIA MORRIS, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARIA MORRIS, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. XX was duly adopted by the City Council of the City of San Juan Capistrano at the Regular meeting thereof, held the 1st day of June, 2021, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: _________________________________ MARIA MORRIS, City Clerk ATTACHMENT 13 - Page 2 of 17 CITY OF SAN JUAN CAPISTRANOEffective Date: July 1, 2021Exhibit AClassified Employee Association 1.02Class TitleGrade Step 1 Step 2 Step3 Step 4 Step 5Utilities Operator Trainee11 2,5252,651 2,784 2,922 3,069Receptionist12 2,589 2,718 2,854 2,999 3,147Office Assistant25 3,567 3,746 3,934 4,129 4,337Accounting Clerk33 4,345 4,565 4,793 5,032 5,283Public Works Specialist I33 4,345 4,565 4,793 5,032 5,283Accounting Specialist 35 4,567 4,795 5,035 5,286 5,550Customer Service Representative 35 4,567 4,795 5,035 5,286 5,550Public Works Specialist II35 4,567 4,795 5,035 5,286 5,550Utilities Operator I35 4,567 4,795 5,035 5,286 5,550Administrative Specialist 36 4,681 4,914 5,159 5,418 5,689Field Customer Service Representative37 4,797 5,037 5,290 5,555 5,831Utilities Operator I - Ground Water Treatment Plant37 4,797 5,037 5,290 5,555 5,831Senior Accounting Specialist39 5,041 5,293 5,558 5,835 6,127Utilities Operator II39 5,041 5,293 5,558 5,835 6,127Senior Public Works Specialist 40 5,166 5,424 5,697 5,981 6,281Utilities Operator II - Ground Water Treatment Plant41 5,296 5,560 5,838 6,131 6,437Administrative Coordinator 42 5,428 5,700 5,984 6,284 6,598Deputy City Clerk42 5,428 5,700 5,984 6,284 6,598Engineering Technician42 5,428 5,700 5,984 6,284 6,598Engineering and Planning Technician42 5,428 5,700 5,984 6,284 6,598Human Resources Assistant 42 5,428 5,700 5,984 6,284 6,598Planning Technician42 5,428 5,700 5,984 6,284 6,598Records Coordinator 42 5,428 5,700 5,984 6,284 6,598Community Services Coordinator 43 5,563 5,843 6,134 6,440 6,763Executive Assistant44 5,703 5,988 6,287 6,601 6,931GIS Specialist 44 5,703 5,988 6,287 6,601 6,931Maintenance Mechanic44 5,703 5,988 6,287 6,601 6,931Permit Technician44 5,703 5,988 6,287 6,601 6,931Utilities Operator III45 5,845 6,138 6,445 6,767 7,105Engineering Assistant 46 5,993 6,291 6,605 6,936 7,283Senior Permit Technician46 5,993 6,291 6,605 6,936 7,283Compensation PlanMonthly Salary ScheduleATTACHMENT 13 - Page 3 of 17 Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5Public Works Supervisor 47 6,142 6,448 6,771 7,109 7,465Senior Citizens Program Coordinator 47 6,142 6,448 6,771 7,109 7,465Utilities Operator III - Ground Water Treatment Plant47 6,142 6,448 6,771 7,109 7,465Accountant 48 6,295 6,611 6,940 7,287 7,652Assistant Planner48 6,295 6,611 6,940 7,287 7,652Customer Service Supervisor48 6,295 6,611 6,940 7,287 7,652Housing Coordinator/Assistant Planner48 6,295 6,611 6,940 7,287 7,652Senior Executive Assistant 48 6,295 6,611 6,940 7,287 7,652Building and Grading Inspector 49 6,452 6,775 7,113 7,468 7,843Code Enforcement Officer49 6,452 6,775 7,113 7,468 7,843Public Works Construction Inspector49 6,452 6,775 7,113 7,468 7,843Water Conservation Coordinator 49 6,452 6,775 7,113 7,468 7,843Associate Planner52 6,948 7,297 7,660 8,044 8,446Housing Supervisor/Associate Planner52 6,948 7,297 7,660 8,044 8,446Water Construction Inspector 52 6,948 7,297 7,660 8,044 8,446Utility Programs Supervisor 53 7,123 7,479 7,853 8,246 8,657Assistant Engineer54 7,300 7,665 8,048 8,452 8,873Water and Sewer Construction Inspector54 7,300 7,665 8,048 8,452 8,873Utilities Superintendent57 7,861 8,255 8,668 9,100 9,556Associate Engineer 58 8,058 8,460 8,884 9,328 9,795Associate Civil Engineer 60 8,460 8,884 9,328 9,795 10,285Chief Plant Operator 61 8,678 9,112 9,567 10,046 10,548 ATTACHMENT 13 - Page 4 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2022Exhibit A Classified Employee Association 1.04Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5Utilities Operator Trainee11 2,575 2,704 2,839 2,981 3,131Receptionist12 2,641 2,773 2,911 3,059 3,210Office Assistant25 3,638 3,821 4,013 4,212 4,424Accounting Clerk33 4,432 4,656 4,889 5,132 5,388Public Works Specialist I33 4,432 4,656 4,889 5,132 5,388Accounting Specialist 35 4,658 4,891 5,135 5,391 5,661Customer Service Representative 35 4,658 4,891 5,135 5,391 5,661Public Works Specialist II35 4,658 4,891 5,135 5,391 5,661Utilities Operator I35 4,658 4,891 5,135 5,391 5,661Administrative Specialist 36 4,774 5,013 5,262 5,527 5,802Field Customer Service Representative37 4,893 5,137 5,396 5,666 5,948Utilities Operator I - Ground Water Treatment Plant37 4,893 5,137 5,396 5,666 5,948Senior Accounting Specialist39 5,142 5,399 5,669 5,952 6,250Utilities Operator II39 5,142 5,399 5,669 5,952 6,250Senior Public Works Specialist 40 5,270 5,533 5,811 6,101 6,407Utilities Operator II - Ground Water Treatment Plant41 5,402 5,671 5,955 6,254 6,566Administrative Coordinator 42 5,537 5,814 6,104 6,410 6,730Deputy City Clerk42 5,537 5,814 6,104 6,410 6,730Engineering Technician42 5,537 5,814 6,104 6,410 6,730Engineering and Planning Technician42 5,537 5,814 6,104 6,410 6,730Human Resources Assistant 42 5,537 5,814 6,104 6,410 6,730Planning Technician42 5,537 5,814 6,104 6,410 6,730Records Coordinator 42 5,537 5,814 6,104 6,410 6,730Community Services Coordinator 43 5,674 5,959 6,257 6,569 6,898Executive Assistant44 5,817 6,108 6,413 6,733 7,070GIS Specialist 44 5,817 6,108 6,413 6,733 7,070Maintenance Mechanic44 5,817 6,108 6,413 6,733 7,070Permit Technician44 5,817 6,108 6,413 6,733 7,070Utilities Operator III45 5,961 6,261 6,574 6,902 7,247Engineering Assistant 46 6,112 6,417 6,737 7,075 7,428Senior Permit Technician46 6,112 6,417 6,737 7,075 7,428Compensation PlanMonthly Salary ScheduleATTACHMENT 13 - Page 5 of 17 Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5Public Works Supervisor 47 6,265 6,577 6,906 7,252 7,615Senior Citizens Program Coordinator 47 6,265 6,577 6,906 7,252 7,615Utilities Operator III - Ground Water Treatment Plant47 6,265 6,577 6,906 7,252 7,615Accountant 48 6,421 6,743 7,079 7,433 7,805Assistant Planner48 6,421 6,743 7,079 7,433 7,805Customer Service Supervisor48 6,421 6,743 7,079 7,433 7,805Housing Coordinator/Assistant Planner48 6,421 6,743 7,079 7,433 7,805Senior Executive Assistant 48 6,421 6,743 7,079 7,433 7,805Building and Grading Inspector 49 6,581 6,910 7,256 7,618 8,000Code Enforcement Officer49 6,581 6,910 7,256 7,618 8,000Public Works Construction Inspector49 6,581 6,910 7,256 7,618 8,000Water Conservation Coordinator 49 6,581 6,910 7,256 7,618 8,000Associate Planner52 7,087 7,443 7,813 8,205 8,615Housing Supervisor/Associate Planner52 7,087 7,443 7,813 8,205 8,615Water Construction Inspector 52 7,087 7,443 7,813 8,205 8,615Utility Programs Supervisor 53 7,265 7,628 8,010 8,411 8,830Assistant Engineer54 7,446 7,819 8,209 8,621 9,050Water and Sewer Construction Inspector54 7,446 7,819 8,209 8,621 9,050Utilities Superintendent57 8,018 8,420 8,841 9,282 9,748Associate Engineer 58 8,219 8,629 9,062 9,514 9,991Associate Civil Engineer 60 8,629 9,062 9,514 9,991 10,490Chief Plant Operator 61 8,852 9,294 9,758 10,247 10,759 ATTACHMENT 13 - Page 6 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2023 Classified Employee Association Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Utilities Operator Trainee 11 2,639 2,772 2,910 3,055 3,209 Receptionist 12 2,707 2,842 2,984 3,135 3,290 Office Assistant 25 3,729 3,917 4,113 4,317 4,534 Accounting Clerk 33 4,543 4,772 5,011 5,261 5,523 Public Works Specialist I 33 4,543 4,772 5,011 5,261 5,523 Accounting Specialist 35 4,774 5,013 5,264 5,526 5,802 Customer Service Representative 35 4,774 5,013 5,264 5,526 5,802 Public Works Specialist II 35 4,774 5,013 5,264 5,526 5,802 Utilities Operator I 35 4,774 5,013 5,264 5,526 5,802 Administrative Specialist 36 4,894 5,138 5,394 5,665 5,947 Field Customer Service Representative 37 5,015 5,266 5,530 5,808 6,097 Utilities Operator I - Ground Water Treatment Plant 37 5,015 5,266 5,530 5,808 6,097 Senior Accounting Specialist 39 5,270 5,534 5,811 6,101 6,406 Utilities Operator II 39 5,270 5,534 5,811 6,101 6,406 Senior Public Works Specialist 40 5,401 5,671 5,956 6,253 6,567 Utilities Operator II - Ground Water Treatment Plant 41 5,537 5,813 6,104 6,410 6,730 Administrative Coordinator 42 5,675 5,959 6,257 6,570 6,899 Deputy City Clerk 42 5,675 5,959 6,257 6,570 6,899 Engineering Technician 42 5,675 5,959 6,257 6,570 6,899 Engineering and Planning Technician 42 5,675 5,959 6,257 6,570 6,899 Human Resources Assistant 42 5,675 5,959 6,257 6,570 6,899 Planning Technician 42 5,675 5,959 6,257 6,570 6,899 Records Coordinator 42 5,675 5,959 6,257 6,570 6,899 Community Services Coordinator 43 5,816 6,108 6,413 6,733 7,070 Executive Assistant 44 5,962 6,261 6,573 6,902 7,246 GIS Specialist 44 5,962 6,261 6,573 6,902 7,246 Compensation Plan Monthly Salary Schedule Exhibit A ATTACHMENT 13 - Page 7 of 17 Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Maintenance Mechanic 44 5,962 6,261 6,573 6,902 7,246 Permit Technician 44 5,962 6,261 6,573 6,902 7,246 Utilities Operator III 45 6,111 6,418 6,739 7,075 7,429 Engineering Assistant 46 6,265 6,578 6,905 7,252 7,614 Senior Permit Technician 46 6,265 6,578 6,905 7,252 7,614 Public Works Supervisor 47 6,422 6,742 7,079 7,433 7,805 Senior Citizens Program Coordinator 47 6,422 6,742 7,079 7,433 7,805 Utilities Operator III - Ground Water Treatment Plant 47 6,422 6,742 7,079 7,433 7,805 Accountant 48 6,582 6,911 7,256 7,618 8,000 Assistant Planner 48 6,582 6,911 7,256 7,618 8,000 Customer Service Supervisor 48 6,582 6,911 7,256 7,618 8,000 Housing Coordinator/Assistant Planner 48 6,582 6,911 7,256 7,618 8,000 Senior Executive Assistant 48 6,582 6,911 7,256 7,618 8,000 Building and Grading Inspector 49 6,745 7,083 7,437 7,808 8,200 Code Enforcement Officer 49 6,745 7,083 7,437 7,808 8,200 Public Works Construction Inspector 49 6,745 7,083 7,437 7,808 8,200 Water Conservation Coordinator 49 6,745 7,083 7,437 7,808 8,200 Associate Planner 52 7,264 7,629 8,009 8,410 8,830 Housing Supervisor/Associate Planner 52 7,264 7,629 8,009 8,410 8,830 Water Construction Inspector 52 7,264 7,629 8,009 8,410 8,830 Utility Programs Supervisor 53 7,447 7,819 8,210 8,621 9,051 Assistant Engineer 54 7,632 8,014 8,414 8,836 9,277 Water and Sewer Construction Inspector 54 7,632 8,014 8,414 8,836 9,277 Utilities Superintendent 57 8,219 8,630 9,062 9,515 9,991 Associate Engineer 58 8,425 8,845 9,288 9,752 10,241 Associate Civil Engineer 60 8,845 9,288 9,752 10,241 10,753 Chief Plant Operator 61 9,073 9,526 10,002 10,503 11,028ATTACHMENT 13 - Page 8 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2021 Exhibit B Management and Professional Employees Association 1.02 Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Assistant City Clerk 46 5,993 6,291 6,605 6,936 7,283 Management Analyst 47 6,134 6,441 6,764 7,101 7,456 Senior Accountant 54 7,273 7,637 8,018 8,419 8,839 Environmental Programs Analyst 56 7,662 8,045 8,447 8,869 9,313 Systems Business Analyst 56 7,662 8,045 8,447 8,869 9,313 Senior Financial Analyst 56 7,662 8,045 8,447 8,869 9,313 Senior Managment Analyst 56 7,662 8,045 8,447 8,869 9,313 Historic Preservation Manager 57 7,853 8,246 8,658 9,090 9,545 Senior Planner 57 7,853 8,246 8,658 9,090 9,545 Executive Services Manager 58 8,049 8,452 8,874 9,318 9,784 Principal Planner 60 8,456 8,879 9,325 9,789 10,280 Safety and Emergency Services Manager 61 8,669 9,101 9,557 10,034 10,537 Senior Engineer 62 8,885 9,329 9,796 10,285 10,800 Accounting Manager 63 9,107 9,563 10,041 10,542 11,069 Rate and Administration Manager 63 9,107 9,563 10,041 10,542 11,069 Public Works Manager 63 9,107 9,563 10,041 10,542 11,069 Technology Services Manager 63 9,107 9,563 10,041 10,542 11,069 Senior Civil Engineer 64 9,335 9,801 10,292 10,806 11,346 Senior Civil Engineer-Environmental Services 64 9,335 9,801 10,292 10,806 11,346 Economic Development/Redevelopment 66 9,808 10,297 10,813 11,353 11,920 Building & Code Enforcement Manager 67 10,053 10,556 11,082 11,637 12,218 Finance Manager 67 10,053 10,556 11,082 11,637 12,218 Utilities Engineer 67 10,053 10,556 11,082 11,637 12,218 Assistant Financial Services Director 68 10,304 10,818 11,361 11,928 12,525 Assistant Public Works Director 68 10,304 10,818 11,361 11,928 12,525 Assistant Development Services Director 68 10,304 10,818 11,361 11,928 12,525 Assistant Utilities Director 69 10,562 11,089 11,643 12,226 12,838 City Engineer 75 12,007 12,607 13,239 13,901 14,595 Compensation Plan Monthly Salary Schedule ATTACHMENT 13 - Page 9 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2022 Exhibit B Management and Professional Employees Association 1.0404 Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Assistant City Clerk 46 6,112 6,417 6,737 7,075 7,428 Management Analyst 47 6,257 6,570 6,899 7,243 7,605 Senior Accountant 54 7,418 7,789 8,179 8,587 9,016 Environmental Programs Analyst 56 7,815 8,206 8,616 9,046 9,499 Systems Business Analyst 56 7,815 8,206 8,616 9,046 9,499 Senior Financial Analyst 56 7,815 8,206 8,616 9,046 9,499 Senior Managment Analyst 56 7,815 8,206 8,616 9,046 9,499 Historic Preservation Manager 57 8,010 8,411 8,831 9,272 9,736 Senior Planner 57 8,010 8,411 8,831 9,272 9,736 Executive Services Manager 58 8,210 8,621 9,051 9,504 9,980 Principal Planner 60 8,625 9,057 9,511 9,985 10,485 Safety and Emergency Services Manager 61 8,842 9,283 9,749 10,234 10,747 Senior Engineer 62 9,063 9,515 9,992 10,490 11,016 Accounting Manager 63 9,289 9,754 10,242 10,753 11,290 Rate and Administration Manager 63 9,289 9,754 10,242 10,753 11,290 Public Works Manager 63 9,289 9,754 10,242 10,753 11,290 Technology Services Manager 63 9,289 9,754 10,242 10,753 11,290 Senior Civil Engineer 64 9,522 9,997 10,498 11,022 11,573 Senior Civil Engineer-Environmental Services 64 9,522 9,997 10,498 11,022 11,573 Economic Development/Redevelopment 66 10,004 10,503 11,029 11,580 12,158 Building & Code Enforcement Manager 67 10,254 10,767 11,304 11,870 12,462 Finance Manager 67 10,254 10,767 11,304 11,870 12,462 Utilities Engineer 67 10,254 10,767 11,304 11,870 12,462 Assistant Financial Services Director 68 10,510 11,034 11,588 12,166 12,775 Assistant Public Works Director 68 10,510 11,034 11,588 12,166 12,775 Assistant Development Services Director 68 10,510 11,034 11,588 12,166 12,775 Assistant Utilities Director 69 10,773 11,311 11,876 12,470 13,094 City Engineer 75 12,248 12,859 13,503 14,179 14,887 Compensation Plan Monthly Salary Schedule ATTACHMENT 13 - Page 10 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2023 Exhibit B Management and Professional Employees Association 1.06641 Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Assistant City Clerk 46 6,265 6,578 6,905 7,252 7,614 Management Analyst 47 6,413 6,734 7,071 7,424 7,795 Senior Accountant 54 7,604 7,984 8,383 8,802 9,242 Environmental Programs Analyst 56 8,011 8,411 8,831 9,272 9,736 Systems Business Analyst 56 8,011 8,411 8,831 9,272 9,736 Senior Financial Analyst 56 8,011 8,411 8,831 9,272 9,736 Senior Managment Analyst 56 8,011 8,411 8,831 9,272 9,736 Historic Preservation Manager 57 8,210 8,621 9,052 9,504 9,979 Senior Planner 57 8,210 8,621 9,052 9,504 9,979 Executive Services Manager 58 8,415 8,836 9,278 9,742 10,229 Principal Planner 60 8,841 9,283 9,749 10,234 10,747 Safety and Emergency Services Manager 61 9,063 9,516 9,992 10,490 11,016 Senior Engineer 62 9,289 9,753 10,242 10,753 11,291 Accounting Manager 63 9,521 9,998 10,498 11,021 11,573 Rate and Administration Manager 63 9,521 9,998 10,498 11,021 11,573 Public Works Manager 63 9,521 9,998 10,498 11,021 11,573 Technology Services Manager 63 9,521 9,998 10,498 11,021 11,573 Senior Civil Engineer 64 9,760 10,247 10,760 11,298 11,863 Senior Civil Engineer-Environmental Services 64 9,760 10,247 10,760 11,298 11,863 Economic Development/Redevelopment 66 10,255 10,765 11,305 11,869 12,462 Building & Code Enforcement Manager 67 10,511 11,036 11,587 12,167 12,773 Finance Manager 67 10,511 11,036 11,587 12,167 12,773 Utilities Engineer 67 10,511 11,036 11,587 12,167 12,773 Assistant Financial Services Director 68 10,773 11,310 11,878 12,471 13,094 Assistant Public Works Director 68 10,773 11,310 11,878 12,471 13,094 Assistant Development Services Director 68 10,773 11,310 11,878 12,471 13,094 Assistant Utilities Director 69 11,043 11,594 12,173 12,782 13,422 City Engineer 75 12,554 13,181 13,841 14,533 15,259 Compensation Plan Monthly Salary Schedule ATTACHMENT 13 - Page 11 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2021 Part Time Employees Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Recreation Leader 15 2,466 2,590 2,718 2,854 2,997 Park/Facility Monitor 15 2,466 2,590 2,718 2,854 2,997 Administrative Intern 16 2,528 2,654 2,788 2,925 3,072 Engineering Intern 16 2,528 2,654 2,788 2,925 3,072 Planning Intern 16 2,528 2,654 2,788 2,925 3,072 Senior Recreation Leader 25 3,157 3,315 3,481 3,656 3,837 Cashier 33 4,079 4,285 4,499 4,725 4,960 Volunteer Coordinator 47 5,437 5,707 5,993 6,293 6,607 Project Manager 78 12,933 13,579 14,259 14,971 15,719 Compensation Plan Monthly Salary Schedule *Part-time hourly positions are paid in houly equivalent of monthly salary. Exhibit C ATTACHMENT 13 - Page 12 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2022 Part Time Employees Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Recreation Leader 15 2,516 2,642 2,773 2,911 3,057 Park/Facility Monitor 15 2,516 2,642 2,773 2,911 3,057 Administrative Intern 16 2,578 2,707 2,843 2,984 3,134 Engineering Intern 16 2,578 2,707 2,843 2,984 3,134 Planning Intern 16 2,578 2,707 2,843 2,984 3,134 Senior Recreation Leader 25 3,220 3,381 3,551 3,729 3,914 Cashier 33 4,161 4,371 4,589 4,819 5,059 Volunteer Coordinator 47 5,545 5,821 6,112 6,419 6,739 Project Manager 78 13,191 13,851 14,544 15,270 16,034 Compensation Plan Monthly Salary Schedule *Part-time hourly positions are paid in houly equivalent of monthly salary. Exhibit C ATTACHMENT 13 - Page 13 of 17 CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2023 Part Time Employees Class Title Grade Step 1 Step 2 Step3 Step 4 Step 5 Recreation Leader 15 2,579 2,708 2,842 2,984 3,133 Park/Facility Monitor 15 2,579 2,708 2,842 2,984 3,133 Administrative Intern 16 2,643 2,775 2,914 3,058 3,212 Engineering Intern 16 2,643 2,775 2,914 3,058 3,212 Planning Intern 16 2,643 2,775 2,914 3,058 3,212 Senior Recreation Leader 25 3,301 3,466 3,640 3,822 4,012 Cashier 33 4,265 4,480 4,704 4,940 5,186 Volunteer Coordinator 47 5,684 5,967 6,265 6,580 6,907 Project Manager 78 13,521 14,197 14,907 15,652 16,434 Compensation Plan Monthly Salary Schedule *Part-time hourly positions are paid in houly equivalent of monthly salary. Exhibit C ATTACHMENT 13 - Page 14 of 17 CITY OF SAN JUAN CAPISTRANO March 2021 ENVIRONMENTAL PROGRAMS ANALYST Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class. Specifications are not intended to reflect all duties performed within the job. DEFINITION Under general supervision, to perform a wide variety of responsible and complex administrative and analytical duties, including written reports, studies, and various compliance efforts associated with the City’s solid waste and recycling programs and other Public Works programs related to the environment; provide assistance to managers and executives as directed; and to provide information and assistance to the public regarding assigned programs and services. DISTINGUISHING CHARACTERISTICS This is a single position classification at the advanced journey level. The incumbent has a significant level of responsibility related to the program areas. The incumbent performs the most difficult and responsible types of duties assigned to the classification, similar in nature to the Senior Management Analyst classification. The incumbent is required to be fully trained in all procedures related to the assigned areas of responsibility. SUPERVISION RECEIVED AND EXERCISED Receives direction from higher level management or executive staff. May exercise direct supervision over technical or clerical staff. ESSENTIAL FUNCTION STATEMENTS Essential responsibilities and duties may include, but are not limited to, the following: Essential Functions: 1. Assumes direct responsibility for a variety of assigned solid waste and recycling programs; other Public Works programs related to the environment, oversees assigned administrative support functions including the budget. 2. Oversees and participates in special projects including complex research of new programs and services associated with the City’s solid waste and recycling efforts and other Public Works efforts; and performs detailed analysis and conducts research on a wide range of solid waste and recycling programs and projects. 3. Ensures compliance with appropriate regulations and policies; recommends modifications as appropriate; serves as resource to various other City departments regarding applicable regulations. Serves s as the City’s liaison with regulatory agencies for assigned program areas when directed. 4. May assist in the preparation and negotiation of contracts for assigned program areas; monitors compliance with applicable contractual agreements; recommends modifications as appropriate. Exhibit D ATTACHMENT 13 - Page 15 of 17 CITY OF SAN JUAN CAPISTRANO  Environmental Programs Analyst (Continued)     2 5. Prepares comprehensive technical records and analytical reports pertaining to assigned areas of responsibility; conducts research and comprehensive data collection efforts to support analysis. 6. Assumes direct responsibility for the preparation and administration of assigned budget(s); maintains and monitors appropriate budgeting controls; prepares various financial reports as required; oversees invoice approvals, budget expenditures, and budget transfers. 7. Coordinates and collaborates with departments, divisions and outside agencies; serves as a liaison with public and private organizations, community groups and other social organizations. 8. Responds to and resolves complaints and inquiries from the general public and business community; reviews problems and recommends corrective actions; prepares summary reports as required. 9. Prepares contract specifications/documents and negotiation of contracts for assigned programs and projects; monitors progress, ensures compliance, and makes recommendations/adjustments as applicable. 10. As assigned, oversees, provides direction, and reviews the work of clerical staff; monitors workload; provides training as necessary. 11. Oversees, provides direction, and reviews the work of consultants providing services to the City for assigned programs. 12. Attends and participates in professional group meetings, as assigned; stays abreast of new developments and changing legislation affecting assigned areas. 13. Performs related duties and responsibilities as required. QUALIFICATIONS Knowledge of:  Principles and practices of public administration.  Operations, services and activities of solid waste and recycling programs.  Methods of research, program analysis and report preparation.  Principles and practices of program development and implementation.  Methods and techniques of public relations.  Principles and practices of budget administration.  Pertinent Federal, State and local laws, codes and regulations. Skill in:  Monitoring and administering a variety of assigned programs.  Independently performing complex administrative and analytical activities  Analyzing problems, identifying alternative solutions, projecting consequences of proposed actions and implementing recommendations in support of goals.  Researching, analyzing, and evaluating programs, policies and procedures.  Following up on assignments and projects.  Overseeing and coordinating assigned projects.  Participating in budget development and administration.  Preparing clear and concise reports.  Independently preparing correspondence and memoranda.  Communicating clearly and concisely, both orally and in writing. ATTACHMENT 13 - Page 16 of 17 CITY OF SAN JUAN CAPISTRANO  Environmental Programs Analyst (Continued)     3  Establishing and maintaining effective working relationships with those contacted in the course of work.  Preparing and administering assigned budgets. EXPERIENCE AND TRAINING GUIDELINES Any combination of experience and training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be: Experience: Five years of management level experience in financial, administrative, and analytical functions. One year of supervisory experience is highly desirable. Training: Equivalent to a Bachelor’s Degree from an accredited college or university with major course work in public administration, business administration or a related field. WORKING CONDITIONS Environmental Conditions: Office environment; exposure to computer screens. Field work including site visits to residences and businesses enrolled in various recycling and other programs. Physical Conditions: Essential functions may require maintaining physical condition necessary for sitting or standing for prolonged periods of time; extensive use of computer keyboard. Attendance at evening and weekend meetings and events is required, as directed. ATTACHMENT 13 - Page 17 of 17 1 CITY OF SAN JUAN CAPISTRANO PROFESSIONAL SERVICES AGREEMENT This Agreement is made and entered into as of July 1, 2021, by and between the City of San Juan Capistrano, a public agency organized and operating under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, CA 92675 (“City”), and Mercy House Living Centers, Inc. a 501 (c)(3) organization with its principal place of business at PO Box 1905 Santa Ana, 92702 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: 40 hours per week of homeless outreach services (hereinafter referred to as “the Project”). B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 2. Compensation. a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $45,500. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis. 3. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or ATTACHMENT 14 - Page 1 of 15 2 the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 4. Maintenance of Records. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 5. Term. The term of this Agreement shall be from July 1, 2021, to June 30, 2022, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work. 6. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 7. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. ATTACHMENT 14 - Page 2 of 15 3 8. Standard of Care Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 9. Assignment and Subconsultant Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 10. Independent Contractor Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: (1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Agreement (8) Property Damage ATTACHMENT 14 - Page 3 of 15 4 (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. c. Workers’ Compensation/Employer’s Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. ATTACHMENT 14 - Page 4 of 15 5 d. Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. g. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to ATTACHMENT 14 - Page 5 of 15 6 non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. h. Qualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. i. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. ATTACHMENT 14 - Page 6 of 15 7 (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 12. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers. b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 13. California Labor Code Requirements. a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects ATTACHMENT 14 - Page 7 of 15 8 (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. b. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor. 14. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. 15. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Orange, State of California. ATTACHMENT 14 - Page 8 of 15 9 16. Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 17. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 18. Organization Consultant shall assign Sarah Jones, Orange County Director of Housing Strategies as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 19. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 20. Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to: CITY: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Benjamin Siegel, City Manager CONSULTANT: Mercy House Living Centers, Inc. PO Box 1905 Santa Ana, CA 92702 Attn: Timothy Huynh, Chief Program Officer ATTACHMENT 14 - Page 9 of 15 10 and shall be effective upon receipt thereof. 22. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 23. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 24. Entire Agreement This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement. 25. Severability The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the remaining provisions unenforceable, invalid or illegal. 26. Successors and Assigns This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 27. Non-Waiver None of the provisions of this Agreement shall be considered waived by either Party, unless such waiver is specifically specified in writing. 28. Time of Essence Time is of the essence for each and every provision of this Agreement. 29. City’s Right to Employ Other Consultants City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. ATTACHMENT 14 - Page 10 of 15 11 30. Prohibited Interests Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. [SIGNATURES ON FOLLOWING PAGE] ATTACHMENT 14 - Page 11 of 15 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF SAN JUAN CAPISTRANO AND MERCY HOUSE LIVING CENTERS, INC. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN JUAN CAPISTRANO By: Benjamin Siegel City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: By: City Attorney /7 MERCY \~u;v-CENTERS , INC. By d /Ip 12 ATTACHMENT 14 - Page 12 of 15 13 EXHIBIT A Scope of Services Outreach services will primarily be targeted to homeless individuals to complete housing assessments, connect individuals to the system of care including physical and mental health services, drug and alcohol rehabilitation, provide emergency vouchers to be used as bridge housing, diversion resources to reconnect individuals and families to support systems in other areas, housing and other social services such as General Relief, CALFresh, Medi-Cal, and address other conditions that may exist. 1. 40 Hours per week outreach services (2 20-hour positions) • Outreach and engagement in partnership with law enforcement, city staff, adjacent cities, local faith leaders, the County of Orange and other stakeholders; • Coordination and execution of VI-SPDAT assessments; • On-going engagement of "By Name List"; • Housing Placement Strategies; • Pro-active connections to resources to address client's needs (medical, mental health, documentation, general relief etc.) • Coordination, in partnership with city staff, to concerns, situations and issues as needed; • Coordination with city staff on community outreach, communication and education • Attendance at weekly case management meetings; • Monthly activity report to include: total number of clients, number if clients served, new engagements, number of referrals made, and number of VI-SPDAT assessments, number of clients who are document ready, number of clients connected with housing or shelter, number of clients provided with diversion services. Reports may modified to include additional information requested by the City; • Invoices for services to be submitted on a monthly basis. • The City will provide desk space for the Mercy House Outreach Team Member to utilize daily. 2. Relocation Assistance and Client Services These services allow the outreach worker to address immediate needs and dynamically respond to opportunities that may expedite a client's path to housing. Examples of these expenses may include but are not limited to: • The cost of a birth certificate; • Taxi or rideshare service to get to time-sensitive appointments; • A short motel stay prior to housing placement; • A long-distance bus ticket, train, or other mode of transportation, to connect a homeless resident with an out-of-town housing or employment opportunity or reunite with a family member that has housing available to them. ATTACHMENT 14 - Page 13 of 15 14 3. Client Supplies Funding provides for limited basic needs items such as water, sunscreen, snacks and bus passes. Outside of their inherent support for homeless clients, these items assist the outreach worker in creating rapport with the clients and help to open up necessary lines of communication to create housing plans. 4. Administrative Expenses Overhead and indirect costs associated with operating the program including but not limited to accounting and payroll processing, supplies and management and oversight of salaried staff position. 5. Rapid Rehousing Funding provides for housing search and placement, case management, rental and deposit assistance, and utilities assistance. ATTACHMENT 14 - Page 14 of 15 15 EXHIBIT B Schedule of Charges/Payments Homeless outreach services provided by Mercy House are partially funded by a Homeless Emergency Aid Program (HEAP) grant. By way of this agreement, the City will supplement services with an additional contribution of $45,500 to the program. Consultant will invoice City on a monthly cycle, per the invoicing schedule below. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract; invoices will be adjusted to reflect actual expenditures. Billable hours are hours that are being spent in the City of San Juan Capistrano working on the tasks as outlined in the scope of work. Non-billable hours are hours such as sick time, holiday pay or vacation pay. Mercy House will provide detailed documentation for each individual served in this program. This documentation includes, but is not limited to the following: • Receipts for motel stay, transportation, and relocation assistance. • Time sheet with detailed information regarding the support of the Case Manager. • Detailed list of supplies that were provided to the client with the receipts. By no later than thirty (30) days after the end of the Term, Mercy House will provide to the City a report that shows actual expenditures over the course of the Term in order for the parties to “true up” the monthly amounts paid by the City and determine whether any unspent amounts must be returned to the City. Invoicing Schedule July $ 7,583.00 August $ 3,447.00 September $ 3,447.00 October $ 3,447.00 November $ 3,447.00 December $ 3,447.00 January $ 3,447.00 February $ 3,447.00 March $ 3,447.00 April $ 3,447.00 May $ 3,447.00 June $ 3,447.00 Total $ 45,500.00 Services Provided 40- Hours Per Week Annual Expense Salaries $ 26,866.00 Tax and Benefits $ 7,791.00 Client Services $ 3,843.00 Admin $ 7,000.00 Total $ 45,500.00 ATTACHMENT 14 - Page 15 of 15