Resolution No. 2025-038RESOLUTION NO. 2025-038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND AUTHORIZING THE EXECUTION OF A SIDE LETTER
OF AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND THE
TEAMSTER6 LOCAL UNION 986
SECTION 1. Recitals.
A. The Teamsters Local Union 986 (Teamsters) has been recognized as an
employee organization pursuant to Resolution No. 4027.
B. On September 2, 2025, the City Council of the City of Vernon adopted Resolution
No. 2025-024 approving a Memorandum of Understanding setting forth certain terms and
conditions for employment of the City of Vernon employees in classifications represented
by Teamsters, for the period of July 1, 2025 through June 30, 2028.
C. Representative members of Teamsters and the City have agreed to execute a Side
Letter of Agreement, effective December 8, 2025, updating provisions regarding excess
leave accrual pay-out procedures.
D. All other terms of the existing Teamsters MOU would remain in effect.
E. The City Council desires to approve the Side Letter of Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon hereby approves and
authorizes the execution of the Side Letter of Agreement (Agreement) between the City
of Vernon and the Teamsters Local Union 986, in substantially the same form attached
hereto as Exhibit A.
SECTION 4. The City Council of the City of Vernon hereby instructs the City
Administrator, or his designee, to take whatever action is deemed necessary or desirable
for the purpose of implementing and carrying out the actions of this Resolution and the
transactions herein approved or authorized, including but not limited to, any
nonsubstantive changes to the Side Letter Agreement attached herein.
SECTION 5. The City Council of the City of Vernon hereby directs the City Clerk,
or the City Clerk’s designee, to send a fully executed Agreement to Michael Grijalva,
Business Representative of Teamsters Local Union 986.
Resolution No. 2025-038
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SECTION 6. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications, and to this end, the provisions of this Resolution are declared
to be severable.
SECTION 7. The City Clerk, or Deputy City Clerk, shall certify the passage and
adoption of this resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED December 16, 2025.
________________________
LETICIA LOPEZ, Mayor
ATTEST:
GENOVEVA ROCHA, City Clerk
APPROVED AS TO FORM:
ZAYNAH MOUSSA-MILWARD,
City Attorney
Resolution No. 2025-038
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF VERNON )
I do hereby certify that the attached is a true copy of Resolution No. 2025-038 that was
passed and adopted at the Regular Meeting held on December 16, 2025, by the following
vote:
AYES: Merlo, Rivera, Ybarra, Lopez
NOES:
ABSENT: Larios
ABSTAIN:
__________________________
GENOVEVA ROCHA, City Clerk
SIDE LETTER OF AGREEMENT
BETWEEN
THE CITY OF VERNON
AND THE
TEAMSTERS LOCAL 986
This Side Letter of Agreement (“Agreement”) between the City of Vernon (“City”)
and Teamsters Local 986 (“Union”) (collectively “Parties”) is entered into to modify
the following sections of Union MOU dated July 1, 2025, through June 30, 2028:
ARTICLE TEN – VACATION
Effective December 8, 2025, Article Ten (Vacation), Section 2(A), shall be modified
to read as follows:
A. Accumulation and carry-over of vacation leave shall be limited to a maximum
of the number of hours the employee was eligible to accrue during the
immediately preceding year. In December of each year, employees shall be
compensated for unused accrued vacation benefit in excess of the allowed
accumulated amount referenced above. For 2025, excess vacation leave
pay out will be processed from January 1, 2025, through the end of the 25th
biweekly pay period, which lands on November 29th. The excess vacation leave
cashouts will be calculated with leave balances and regular rate of pay as of
November 29, 2025. Employees will have an alternative, one-time option for 2025
only, to elect to defer their pay out to February 2026. This will be a deferred pay
out, with same stipulated pay provisions.
Effective in 2026 and going forward, the excess vacation leave pay outs will be
for the period of the 26th biweekly pay period of each year through the end of
the 25th biweekly pay period of the following year. The specific dates will vary
from year to year. Employees may elect to take pay out monies as cash or as
contribution to the employee’s 457 deferred compensation account subject to
the rules of the applicable plan.
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Resolution No. 2025-038
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ARTICLE ELEVEN – SICK LEAVE
Effective December 8, 2025, Article Eleven (Sick Leave), Section 1(C), shall be
modified to read as follows:
C. Employees will continue to accrue sick leave hours at the 80 hours per year
rate, and any sick leave hours exceeding 960 will be compensated in December
of each year at 50% of the employee’s regular rate of pay as of November 29,
2025. For 2025, excess sick leave pay out will be processed from January 1, 2025,
through the end of the 25th biweekly pay period, which lands on November 29th.
The excess sick leave cashouts will be calculated with leave balances and regular
rate of pay as of November 29, 2025. Employees will have an alternative, one-
time option for 2025 only, to elect to defer their pay out to February 2026. This will
be a deferred pay out, with same stipulated pay provisions.
Effective in 2026 and going forward, the excess sick leave pay outs will be for the
period of the 26th biweekly pay period of each year through the end of the
25th biweekly pay period of the following year. The specific dates will vary from
year to year. Employees may elect to take pay-out monies as cash or as
contribution to the employee’s 457 deferred compensation account subject to
the rules of the applicable plan.
FOR THE CITY OF VERNON
_____________________________ _________________________
Brian Saeki, City Administrator Date
FOR TEAMSTERS, LOCAL 986
_____________________________ _________________________
Michael Grijalva, Business Representative Date
Resolution No. 2025-038
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City Council Agenda Report
Meeting Date:December 16, 2025
From:Su Tan, Director of Human Resources
Department:Human Resources
Submitted by:Lisette Grizzelle, Human Resources Manager
Subject
Side Letters of Agreement with Various Bargaining Groups Regarding Excess Leave Accrual
Pay-Out Language
Recommendation
A. Adopt Resolution No. 2025-037 approving the Excess Leave Accrual Pay-Out Side Letter of
Agreement by and between the City of Vernon and the International Brotherhood of Electrical
Workers, Local 47 (IBEW);
B. Adopt Resolution No. 2025-038 approving the Excess Leave Accrual Pay-Out Side Letter of
Agreement by and between the City of Vernon and the Teamsters Local Union 986 (Teamsters);
C. Adopt Resolution No. 2025-039 approving the Excess Leave Accrual Pay-Out Side Letter of
Agreement by and between the City of Vernon and the Vernon Police Management Association
(VPMA); and
D. Adopt Resolution No. 2025-040 approving the Excess Leave Accrual Pay-Out Side Letter of
Agreement by and between the City of Vernon and the Vernon Police Officers’ Benefit
Association (VPOBA).
Background
The City recognizes four employee bargaining groups including the International Brotherhood of
Electrical Workers, Local 47 (IBEW), Teamsters Local Union 986 (Teamsters), Vernon Police
Management Association (VPMA), and the Vernon Police Officers’ Benefit Association (VPOBA).
On September 2, 2025, the City Council approved Memoranda of Understanding (MOU) with
each of the four respective bargaining groups for the term period of July 1, 2025 through June
30, 2028.
Subsequent to MOU adoption, employee questions regarding excess leave accrual pay-outs
prompted a review of the MOU language regarding such pay-outs. Following this review, the
City’s Management team is recommending a change to the excess leave accrual pay-out pay
date from February to December of each year. Human Resources staff collaborated with Finance
and Legal staff and all four bargaining groups to ensure all stakeholders had an opportunity to
review and provide feedback on the proposed revisions. The IBEW, Teamsters, VPMA and
VPOBA bargaining units are in agreement with the proposed revisions to the excess leave
accrual pay-outs and have agreed to execute Side Letters of Agreement (Side Letters) to capture
the changes. The proposed changes to the excess leave accrual pay-out information were also
provided to the non-represented group.
The following are the key changes to the pay-out language across all bargaining groups and non-
represented employees:
Pay-Out date change from February to December of each year
For 2025, excess vacation and sick leave pay-out will be processed from January 1, 2025,
through the end of the 25th biweekly pay period, which lands on November 29th
For 2025 only, employees will have an alternative to elect to defer their pay-out to
February 2026
Effective 2026 and moving forward, the excess vacation and sick leave pay-out will be for
the 26th biweekly pay period of each year through the end of the 25th biweekly pay period
of the following year.
The proposed Side Letters and corresponding resolutions have been approved as to form by the
City Attorney.
Fiscal Impact
There is no fiscal impact associated with this report as the proposed recommendation only
changes the excess leave accrual pay-out date.
Attachments
1. Resolution No. 2025-037 - IBEW Local 47 Side Letter of Agreement
2. Resolution No. 2025-038 - Teamsters Local Union 986 Side Letter of Agreement
3. Resolution No. 2025-039 - VPMA Side Letter of Agreement
4. Resolution No. 2025-040 - VPOBA Side Letter of Agreement