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HomeMy WebLinkAbout09. DCEA-Maintenance.MOU.2012-2014.07-24-12AGENDA MEMO TO: Mayor and Members of the City Council FROM: Office of the City Manager By: Irma Youssefieh, Human Resources Director DATE: July 24, 2012 SUBJECT: ADOPTION OF MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES' ASSOCIATION — MAINTENANCE UNIT RECOMMENDATION Staff requests the City Council adopt the attached resolution: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADOPTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES' ASSOCIATION — MAINTENANCE UNIT (April 1, 2012 — March 31, 2014) DISCUSSION Staff has reached agreement with the Downey City Employees' Association (DCEA) — Maintenance Unit that represents 55 field employees in classifications assigned to maintenance services, utilities, and transit operations. Labor negotiations for a new contract term of April 1, 2012 to March 31, 2014 represents positive outcomes between the City and the DCEA Maintenance Unit that include employee economic concessions to assist the City in meeting projected fiscal challenges in Fiscal Years 2012 -2013 and 2013 -2014. These concessions include: the Kaiser HMO only medical plan for unit employees with a reopener in June 2013 to discuss further changes to insure medical cost savings in Fiscal Year 2013-2014, employee contribution of 2% compensation towards employer retirement costs that begins with the pay period that includes July 1, 2012 and an additional 2% (for a total of 4 %) contribution starting in the pay period that includes July 1, 2013; and, an agreement on mandatory non -paid furlough leave for unit employees in Fiscal Years 2012 -2013 and 2013 -2014 in the amount up to but not to exceed 72 hours per year. The Memorandum of Understanding is a product of a labor negotiation process involving the DCEA — Maintenance Unit and City management representatives. This process was completed in accordance with State law and the City's Personnel Rules and Regulations. FISCAL IMPACT: Based on current information available and dependent upon total claims incurred by the City's self- funded medical plan at termination, City -wide medical savings are projected to be approximately $1.5M in Fiscal Year 2012 -2013. Projected additional savings in personnel costs in Fiscal Year 2012 -2013 and 2013 -2014 is approximately $49,392 per year. S: /Agenda Memos.CC.2012 /DCEA Maint.Unit.MOU.doc CITY OF DOWNEY, CALIFORNIA WHEREAS, the City has met its obligation to meet and confer pursuant to the Myers - Milias -Brown Act and Employee Relations Ordinance No. 1118; and WHEREAS, the City and the Association have memorialized the agreement in a written Memorandum of Understanding. SECTION 1. The Memorandum of Understanding between the City of Downey and the Downey City Employees' Association — Maintenance Unit, attached hereto, is hereby approved in substantially the form thereof together with any additions thereto or changes therein deemed necessary or advisable by the City Manager. SECTION 2. The Human Resources Director is authorized to sign the Memorandum of Understanding. ATTEST: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADOPTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES' ASSOCIATION — MAINTENANCE UNIT (April 1, 2012 — March 31, 2014). WHEREAS, the City and the Association have reached agreement; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 3. The City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 24 day of July, 2012. Adria M. Jimenez, City Clerk, CMC AYES: Council Members: NOES: Council Member: ABSENT: Council Member: ABSTAIN: Council Member: Roger C. Brossmer, Mayor HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting held on the 24 day of July, 2012 by the following vote, to wit: Adria M. Jimenez, City Clerk, CMC MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES' ASSOCIATION - MAINTENANCE UNIT April 1, 2012 — March 31, 2014 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES' ASSOCIATION /MAINTENANCE UNIT ARTICLE NO. TITLE OF ARTICLE PAGE NO. I RECOGNITION 1 11 NON - DISCRIMINATION 1 III BASIC COMPENSATION PLAN 2 Sec. 1 — Salary Increases 2 Sec. 2 — Plan of Salary Schedules 2 Sec. 3 — Eligibility for Salary Advancement 2 Sec. 4 — Salary Schedule Step Reduction 3 Sec. 5 — Merit Longevity 3 Sec. 6 — Mechanics' Tools 3 Sec. 7 — Out -of -Rank Pay 4 Sec. 8 — Safety Work Boots 4 Sec. 9 — Acting Pay 4 Sec. 10- Backflow Certification Pay 4 Sec. 11- Bonus Pay for Training 5 Sec. 12- Bilingual Pay 5 Sec. 13- Water System Operator Certificate Pay 5 Sec. 14- Qualified License for Pesticide Pay 5 Sec. 15- On -Duty Training for Commercial Driver's 6 License IV WORK WEEK 6 Sec. 1 — Work Schedule 6 Sec. 2 — Voluntary Reduction of Full -time Hours 6 V OVERTIME 7 Sec. 1 — Overtime Compensation 7 Sec. 2 — No Pyramiding 7 Sec. 3 — Overtime Policy 7 VI COMPENSATION FOR SPECIAL CALL -IN 7 VII HOLIDAYS 8 VIII VACATION 9 Sec. 1 — Accruals 9 Sec. 2 — Accrual Limits 10 Sec. 3 — Vacation Payoff 10 Sec. 4 — Accrual Calculation 10 Sec. 5 — Use of Vacation 10 IX LEAVES OF ABSENCE 10 Sec. 1 — Leaves of Absence Without Pay 10 Sec. 2 — Health Insurance Premiums 10 Sec. 3 — Written Notice of Intent to Return 10 Sec. 4 — Outside Employment While on Leave 10 Sec. 5 — Unpaid Leave and Accumulation of Benefits 11 Sec. 6 — Sick Leave 11 Sec. 7 — Emergency Leave 12 Sec. 8 — Personal Leave 13 Sec. 9 — Workers' Compensation Injury on Duty 13 Sec. 10— Employee Disability Leave 14 Sec. 11- Military Leave 15 Sec. 12- Jury Duty 15 Sec. 13 — Reduction in Salary Through Mandatory 15 Unpaid Furlough Leave X FRINGE BENEFIT ADMINISTRATION 16 Sec. 1 — Administration 16 Sec. 2 — Selection and Funding 16 Sec. 3 — Changes 16 XI MEDICAL, DENTAL AND LIFE INSURANCE 16 Sec. 1 — Medical Insurance 16 Sec. 2 — Dental Insurance 17 Sec. 3 — Life Insurance 18 XII RETIREMENT 19 Sec. 1 — CaIPERS Coverage 19 Sec. 2 — Retiree Medical Annuity 20 XIII TUITION REIMBURSEMENT 21 XIV PROBATIONARY PERIOD 21 Sec. 1 — Length of Probation /Extensions 21 Sec. 2 — Process for Retention/Termination 21 Sec. 3 — First of the Month 21 ii Sec. 4 - Rejection Without Right of Appeal 21 XV SENIORITY 22 Sec. 1 — Seniority Date 22 Sec. 2 — Layoffs 22 Sec. 3 — Loss of Seniority 23 Sec. 4 - Re- employment List 23 Sec. 5 - Layoff Notice and Severance Pay 23 XVI CITY RIGHTS 23 Sec. 1 — Management Rights 23 Sec. 2 — Exercise of Management Rights 24 Sec. 3 — Contracting Out 24 XVII EMPLOYEE ORGANIZATION RIGHTS AND RESPONSIBILITIES 25 Sec. 1 — Agency Shop Agreement — Legislative Authority 25 Sec. 2 — Election 25 Sec. 3 - Association Dues /Service Fees 25 Sec. 4 - Religious Exemption 27 Sec. 5 - Rescission 27 Sec. 6 - Indemnification 27 XVIII NO STRIKE — NO LOCKOUT 28 Prohibited Conduct 28 Sec. 1 — No Job Action 28 Sec. 2 — No Lockout 28 Sec. 3 — Consequence for Prohibited Conduct 28 Sec. 4 — Suspension of Employee Organization Rights 28 Association Responsibility 28 Sec. 1 — Association Responsibility 28 Sec. 2 — Hold Harmless 28 XIX GRIEVANCE PROCEDURE 28 Sec. 1 — Grievance 28 Sec. 2 — Conduct of the Grievance Procedure 29 Sec. 3 — Grievance Steps 29 XX MISCELLANEOUS 30 Sec. 1 — Substance Abuse Policy 30 iii Sec. 2 — Lateral Transfer Procedure 33 Sec. 3 — Labor - Management Committee 33 Sec. 4 - Leave Entitlement 33 Sec. 5 - Court Referrals 33 Sec. 6 - Americans with Disability Act (ADA) 34 Sec. 7 - Reopener 34 XXI SOLE AND ENTIRE MEMORADUM OF UNDERSTANDING 34 Sec. 1 — Sole Source 34 Sec. 2 — Inclusion of Other Rules and Regulations 34 XXII WAIVER OF BARGAINING DURING TERM OF THIS 34 AGREEMENT XXIII EMERGENCY WAIVER PROVISION 35 XXIV SEPARABILITY 35 XXV TERM OF MEMORANDUM OF UNDERSTANDING 35 XXVI RATIFICATION AND EXECUTION 36 Exhibit A CLASSIFICATIONS REPREENTED BY ASSOCIATION 37 iv MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES' ASSOCIATION - MAINTENANCE UNIT ARTICLE I RECOGNITION Pursuant to the provisions of the Employee Relations Ordinance No. 394 and the Supplemental Employee Relations Rules and Regulations of the City of Downey, the City of Downey (hereinafter called the "City ") has recognized the Downey City Employees' Association- Maintenance Unit, (hereinafter called the Association,) as the exclusive representative of employees in the Maintenance Unit which includes the classifications described in Exhibit A. The City has recognized the Association for the purpose of meeting its obligations under the Meyers — Milias -Brown Act, Government Code Section 3500 etc. seq. and the Employee Relations Resolution of the City when City rules, regulations or laws affecting wages, hours or other terms and conditions of employment are amended or changed. ARTICLE II NON - DISCRIMINATION Section 1. The parties mutually recognize and agree to protect the rights of all employees hereby to join and /or participate in protected Association activities or to refrain from joining or participating in protected activities in accordance with the Employee Relations Ordinance and Government Code Sections 3500 and 3511. Section 2. The Association and the City agree not to discriminate against any employee with respect to recruiting, hiring and promotion based upon race, sex, religion, color, national origin, ancestry, age or qualified physical handicap. All decisions with respect to recruiting, hiring and promotion shall be based upon an individual's qualifications, as related to the requirements of the position being filled. The Association and the City further agree that other personnel matters, including but not limited to, compensation, benefits, transfers, layoffs, recall from layoffs, training, education and social and recreational programs shall be administered without regard to race, sex, religion, color, national origin, ancestry, age, or qualified physical handicap. The Association further agrees not to discriminate against any member or applicant for membership on the basis of race, sex, religion, color, national origin, ancestry, age, or qualified physical handicap. The City encourages all employees to treat one another with dignity and respect. Harassment of fellow employees is a violation of City policy. No employment decision may be made based upon an employee's submission to or rejection of such conduct. Any employee who believes that he or she is the victim of such harassment, whether sexual, racial, ethnic or religious, is required immediately to report the conduct to a supervisor, the department head or the Human Resources Director. Any employee who engages in such conduct is subject to disciplinary action, including immediate discharge. Section 3. Whenever the masculine gender is used in this Memorandum of Understanding, it shall be understood to include the feminine gender. ARTICLE III BASIC COMPENSATION PLAN Section 1. Salary Increase. A. There are no salary increases scheduled for represented classes during the term of this Memorandum of Understanding. Section 2. Plan of Salary Schedules. A. The pay plan consists of a set of monthly salary schedules. Each of such schedules is designated by a schedule number. Each schedule consists of five (5) steps of monthly compensation, each of which is designated by step letter. B. For payroll purposes, the hourly equivalent of a monthly rate shall be computed by dividing twelve (12) times the monthly rate by fifty -two (52) times the number of working hours per week. Section 3. Eligibility for Salary Advancement. A. Eligibility for Salary Step Increase. 1. Salary step increases shall be considered on a merit basis only, and then only at the following times, and in accordance with subsection B below. 2. All full time appointments shall be made at the first step of the salary schedule assigned that class, unless prior written approval of the City Manager is obtained for appointments at a higher step in the assigned schedule. 3. No salary advancements shall be made so as to exceed the maximum rate established in the salary schedule for the class to which the employee's position is allocated. B. Qualification for Salary Step Advancement. 1. Advancement shall not be automatic but, shall be based upon merit, dependent upon increased service value of an employee to the City as exemplified by recommendations of his supervisor, length of service, performance record, special training undertaken, and other objective evidence. 2. Only employees rated as meeting the standard of fully effective work performance shall be qualified to advance to the salary steps B, C, D and E. 2 C. Merit Evaluation. 1. Every employee shall receive an objective, written job performance rating, no sooner than twenty (20) working days before, no later than ten (10) working days before the date of eligibility for each salary step, merit longevity or hourly increase, and annually thereafter, and upon a change of employment status. Nothing in this section shall prohibit the department head from authorizing a supervisor to give an additional objective rating to an employee between those periods of time described in this section. 2. It shall be the duty of the department head to delegate the responsibility of every employee's rating to that level of supervision having immediate knowledge of the employee's work. An employee shall be rated by his immediate supervisor, which rating shall be reviewed by the department head. Section 4. Salary Schedule Step Reduction. Whenever an employee's work performance falls below the level for which a step increase was granted, an employee's authorized pay may be reduced to the employee's previous step rate under written procedures established by the City for demotions and reduction in pay. Section 5. Merit Longevity. A. Eligibility for Merit Longevity. Upon approval of the appointing power, permanent employees who have completed ten (10) continuous years of service may receive merit longevity pay provided that: 1. The employee has maintained eligibility for salary Step E; and 2. The employee has been evaluated in the tenth year as "meets standards" as defined by a comprehensive rating at or above the middle column of the current reporting form, or the equivalent rating on any revised reporting form. Eligible employees shall be paid, in addition to their respective regular prescribed salary, a monthly amount equal to the next salary step above their monthly base rate; and after twenty (20) years, one and one -half (1 -1/2) steps above their monthly base rate. B. Qualification for Merit Longevity. Merit longevity is to be provided as continuing incentive to career employees. Such payment shall continue with approval of the City Manager, only during such period as an eligible employee continues to "meets standards" as defined above, and shall be terminated at any time by the City Manager when the quality of service, as evidenced by the performance rating of such employee, does not merit such additional compensation. Section 6. Mechanics' Tools. If tools provided by the Mechanics are lost due to fire or verified burglary, then the City shall replace said tools. The Police Department would provide verification of burglary, after review of appropriate evidence. 3 Each Mechanic shall be reimbursed for the purchase of tools up to an annual budget limit. Effective January 1, 2009, the annual budget limit for the purchase of tools shall be one thousand dollars ($1,000.00). At the earliest possible time after purchase, the employee shall claim reimbursement for approved tools by submitting an itemized receipt. The department head shall expeditiously authorize such reimbursement for approved tools. Approved tools shall be of a high quality, bearing a brand name that is recognized throughout the industry and approved by the department head (e.g., Sears - Craftsman, Proto, Snap -On). Section 7. Out -of -Rank Pay. To assure the orderly performance and continuity of municipal services, the City may temporarily assign employees to positions of higher rank on an acting basis. The selection of an employee for an out -of -rank assignment shall be at the discretion of the department head or his designee. A temporary out -of -rank pay differential of one step (5.5 %) shall be authorized when an employee has actually worked in a position of higher rank for a period of ten (10) consecutive work days. Paid holidays shall be considered as days actually worked. Other forms of authorized leave such as sick leave, emergency leave and vacation shall not be considered as days actually worked. An employee who receives out - of -rank pay will continue to receive any salary premium amounts (longevity, certificate pay, etc.), will maintain their existing benefits, and will receive any general salary adjustments provided to employees with the same classification. Section 8. Safety Work Boots. Effective January 1, 2009, covered maintenance employees in the Public Works Department and Community Development Departments, other than those crews listed below shall be reimbursed for the purchase of approved safety work boots up to an annual budget limit of $160.00. Effective January 1, 2009, covered employees who work in the park crew, street crew, the water distribution crew, mechanics, and the water supply crew shall be reimbursed for the purchase of approved safety work boots up to an annual budget limit of $200.00. Such reimbursement shall be made upon presentation by the employee of an itemized receipt showing that work boots, meeting City safety requirements, have been purchased. Maintenance employees shall wear work boots meeting safety requirements at all times while on duty. The City agrees to permit a one -year carry over of the boot allowance at the employee's option to cover the purchase of boots in excess of the budget limit. Effective November 10, 2009, an employee may use any unused amount of the annual boot allowance towards the purchase of products for the care and maintenance of safety shoes such as repellent sprays, polish, shoelaces, and insoles. Section 9. Acting Pay. An employee who has been designated by the City to serve in an acting capacity for sixty (60) consecutive work days or more shall receive Step A of the range for the classification in which the employee is performing active duties or five and one -half percent (5.5 %), whichever is greater. Service in an acting capacity shall not be used as a basis for, or in support of, a request for reclassification. An employee who receives acting pay will continue to receive any salary premium amounts (longevity, certificate pay, etc.), will maintain their existing benefits, and will receive any general salary adjustments provided to employees with the same classification. Section 10. Backflow Certification Pay. The Director of Public Works shall have the authority and discretion to provide and /or eliminate special backflow certification pay to any covered employee up to budget authority. Employees who are assigned to backflow certification shall receive a salary additive of five and one -half percent (5.5 %) per month above 4 the employee's regular rate of pay. The Director of Public Works has the discretion to establish appropriate selection criteria and job responsibilities related to this special pay. Section 11. Bonus Pay for Training. At the department head's discretion, an employee who is assigned by the department head to train new employees may be paid an amount equal to two and three - quarters percent (2 -3/4 %) of the appropriate range in the salary schedule for a maximum period of twelve (12) months. To be eligible to receive the bonus pay for training, an employee must be specifically assigned to a trainee by the department head. A trainer will receive the extra stipend for hours scheduled and worked in a training capacity. Section 12. Bilingual Pay. Employees required to speak or translate Spanish as part of their regular duties will be compensated forty -six dollars and fifteen cents ($46.15) per bi- weekly pay period in addition to their regular salary. The employee's department head has the authority and discretion to assign and /or remove this bonus up to budget authority. To be eligible for this assignment, the employee must pass a conversational examination administered by a court certified interpreter, or an employee who has been certified by the Human Resources Director to administer such examination. Employee must recertify at least every eighteen (18) months to maintain the eligibility. Section 13. Water System Operator Certificate Pay. Effective August 2, 2004 specified employees, who are assigned to the Water Division, shall receive additional compensation at the following rates of pay upon attainment of the following California Department of Health Services Distribution System Classification and Treatment Facility Classification certificate(s). Effective December 15, 2008, an employee who is not assigned to the Water Division, but is required to possess and maintain such certification shall receive this pay. A. Employees who are classified as Water System Operators and who maintain a D1 and /or T1 certificate shall be eligible for Certificate Level One Pay of one hundred fifteen dollars ($115.00) per month. B. Employees who are classified as Water System Operators or Water System Lead Operators and who maintain a D2 and /or T2 certificate or above shall be eligible for Certificate Level Two Pay of two hundred sixty -five dollars ($265.00) per month. C. Employees are entitled to receive only one level of Certificate Pay. D. No additional compensation shall be granted for certificates at higher levels (e.g. D3- D5 and /or T3 -T5). Employees shall immediately notify their supervisor if they have lost their certification for any reason. Failure to maintain the appropriate certificate will result in the loss of certificate pay as well as additional appropriate personnel action. Section 14. Qualified License for Pesticide Pay. Effective January 2, 2006, the Director of Public Works shall have the authority and discretion to provide and /or eliminate qualified operators license for pesticide pay to any covered employee up to budget authority. Employees who are so assigned shall receive Pesticide Pay of one hundred dollars ($100.00) per month above the employee's regular rate of pay. The Director of Public Works has the discretion to establish appropriate selection criteria and job responsibility related to this special pay. 5 Section 15. On -Duty Training for Commercial Driver's License. The City shall continue to provide on -duty training to a non - probationary employee to assist him attain or maintain the required commercial driver's license and endorsement(s). Training shall be scheduled accordingly within the regular schedule of operations and shall be based on the availability of resources to conduct the training. WORK WEEK Section 1. Work Schedule. ARTICLE IV A. The "9/80" schedule provides eighty (80) hours of scheduled work in a two -week pay period. Employees are scheduled to work eight (8) nine (9) hour shifts and one (1) eight (8) hour shift in a two week pay period. There is one alternating day off in the work schedule. The alternating day off is Friday. The work week for FLSA overtime purposes shall start (4) four hours into the nine (9) hour Friday shift. Management shall maintain the right to schedule employee's work days, start and end times, establishing FLSA work weeks, etc. B. Employees with hardships may request to their department head to be assigned the five (5) eight (8) hour shifts per work week for eighty (80) hours of scheduled work in a two (2) week pay period. The work week for FLSA overtime purposes for this schedule shall start at 12:01 a.m. Monday and end at 12:00 a.m. Sunday. If the request is denied, the Association and City agree that the only appeal shall be to the Assistant City Manager. The decision of the Assistant City Manager shall be final with no further appeal. Section 2. Voluntary Reduction of Full -Time Hours. A. A department head may grant a request from a full -time employee to reduce their work hours below forty (40) hours in a work week. Employees may request reductions of up to, but not to exceed, sixteen (16) hours in a two (2) week pay period. This Section shall not apply to employees who request reductions of more than sixteen (16) hours in a pay period. B. Employees who participate in this voluntary program shall maintain their status of "full- time" with all the normal rights and privileges that status holds unless specifically altered by this section. C. Employees who are granted a reduction shall have salary reduced in proportion to the reduced hours or shall be paid for the actual hours worked. D. The City shall continue contributions to medical benefits as outlined in this M.O.U. E. Leave time benefits such as vacation, sick leave and holidays, shall be reduced in proportion to the hours worked. F. All approved programs shall begin on the first Monday in the month that begins a pay period. Employees approved for this program shall be required to remain on the reduced schedule for at least two (2) pay periods. Employees shall only make two (2) requests /changes per fiscal year. 6 G. Nothing in this Section shall diminish management rights to schedule working hours, starting times, the number of hours worked, nor right to refuse requests; nor other rights as previously reserved. Section 1. Overtime Compensation. Overtime may be compensated in time off or money. Employees assigned to work overtime shall have the right to be paid money, unless the form of compensation has been discussed in advance. All approved overtime worked by an employee in excess of forty (40) hours in the employee's work week shall be paid at the rate of time and one -half (1.5) the employee's regular hourly rate. Management may inform employees, prior to the performance of the work, that only "compensatory time" is available. In this instance, employees shall have the right to refuse the overtime assignment. Section 2. No Pyramiding. There shall be no pyramiding of overtime pay. Section 3. Overtime Policy. It is the policy of the City that overtime work is to be discouraged. However, in cases of emergency or whenever public interests or necessity requires, any department or division head may require any employee in such department or division to perform overtime work. The City shall assign overtime on a fair and equitable basis and shall establish a system of rotation of overtime. The City agrees to implement and update to the current Policy to insure that overtime assignments and assignment of the stand -by pager in the Utilities Division are rotated among qualified personnel, provided that such system shall guarantee the integrity of the City's ability to perform services with adequate available manpower. The projects and types of work for which overtime may be authorized shall be approved in advance by the City Manager, except in the event of emergency, overtime is authorized by the department head or his designate. COMPENSATION FOR SPECIAL CALL -IN ARTICLE V OVERTIME ARTICLE VI Section 1. Employees covered by this Agreement who are called in to perform work at times other than those normally required for the employee's employment shall receive and be paid for a minimum of two and six - tenths (2.6) hours at the rate of time and one -half (1.5). Employees shall be entitled to call -in pay in the event the employee is required to report back to work after completing his normal work shift, left City premises, and /or the employee work location. Hours worked in excess of the two and six - tenths (2.6) hour guarantee shall be counted toward the computation of overtime pay. 7 Section 2. If an employee is called in less than four (4) hours before the start of a regular shift, the employee shall be paid for the hours actually worked. Such hours shall be counted toward the computation of overtime pay. Section 3. In cases of emergency or whenever public interests or necessity requires, any department or division head may require an employee in such department or division to perform work at times other than normally required. Section 4. Emergency call outs for employees not on standby shall be rotated among all qualified unit members. The City may, at its discretion, establish eligibility criteria based on known skills, classification and distance from the workplace. The City reserves the right to call the employee nearest the emergency site when time is of the essence. HOLIDAYS ARTICLE VII Section 1. Employees covered by this Agreement shall receive eight (8) hours of pay for each of the following holidays: 1. New Year's Day 2. Martin Luther King's Birthday 3. Washington's Birthday (President's Day) 4. Memorial Day 5. Independence Day 6. Labor Day 7. Veterans' Day 8. Thanksgiving Day 9. Day after Thanksgiving 10. Day before Christmas 11. Christmas Day When a holiday falls on a weekday that is an employee's regular day off, the employee shall receive eight (8) hours of compensatory time at straight time. When a holiday falls on a day an employee is scheduled to work nine (9) hours, and the employee takes the day off, the employee shall add one (1) hour by choosing vacation, compensatory time, personal leave, or time without pay. Sick leave, other than personal leave, may not be used to supplement the holiday hours. Section 2. When a holiday falls on a Saturday, the preceding Friday will be observed as the holiday. When a holiday falls on a Sunday, the following Monday shall be observed as the holiday. When Christmas Day falls on a Saturday, the day before Christmas shall be observed on the previous Thursday. When Christmas Day falls on a Monday, the day before Christmas shall be observed on the previous Friday. Section 3. When an employee works on a holiday (the day City Hall observes), the employee shall receive holiday pay that shall be eight (8) hours of pay at the employee's regular hourly rate of pay; together with overtime pay of one and one -half (1.5) times the employee's 8 hourly rate of pay for each hour worked on the holiday. When an employee works on the actual holiday (when the holiday is observed as City Hall closure on another day), the employee will receive the premium pay above, unless the employee was paid premium on the day the holiday was observed. Section 4. Should one (1) of the holidays listed above fall during the employee's vacation period, the employee shall receive holiday pay and no charge shall be made against the employee's accumulated vacation. Section 5. Part -time employees who are employed in classifications listed in Exhibit A and have been employed by the City for three (3) years and are enrolled in the California Public Employees' Retirement System (CaIPERS) and have a work schedule of over thirty (30) hours per week on a regular and consistent basis, will receive seventy -five percent (75 %) of this leave benefit (six (6) hours per holiday). Effective January 1, 2006 this program will be discontinued and no additional part- timers will be eligible for this benefit. City agrees to grandfather the two existing part -time employees who are enrolled in CaIPERS retirement as of January 1, 2006. Section 1. Accruals. ARTICLE VIII VACATION A. Employees covered by this Agreement shall accrue vacation leave pay on the following scheduled basis: Years of Service Hours per Year Monthly Accrual 0 - 3 80 6.7 Hrs. 4 - 5 96 8.0 Hrs. 6 -10 120 10.0 Hrs. 11 -15 136 11.3 Hrs. 16+ 160 13.4 Hrs. B. Part -time Employees. Part -time employees who meet the criteria set forth in Article VII, Section 5, shall accrue vacation leave with pay on the following scheduled basis: Years of Service Within Represented Class Hours per Year Monthly Accrual 0 - 3 60 5.0 hrs. 4 - 5 72 6.0 hrs. 6 - 10 90 7.5 hrs. 11 - 15 102 8.5 hrs. 16+ 120 10.0 hrs. Effective January 1, 2006, this program will be discontinued and no additional part -time employees will be eligible for this benefit. City agrees to grandfather the two existing part -time employees who are enrolled in CaIPERS as of January 1, 2006. Section 2. Accrual Limits. Vacation shall be taken at the convenience of the City with the approval of the department head. Where possible, such vacation should be taken annually and not accumulated from year to year. All eligible employees, however, shall be allowed to accumulate two (2) years allowance of vacation. If the employee is prohibited by the supervisor from taking the employee's vacation because of manpower shortages or operational needs, the employee shall be paid all vacation in excess of two (2) years at the employee's rate of pay at the time of the pay -off. Section 3. Vacation Payoff. When an employee who has become entitled to receive vacation under this Article separates from City service, either by retirement, permanent layoff, or termination, the employee shall be entitled to be paid for unused earned vacation at the employee's base hourly rate of pay in effect at the time of separation. Section 4. Accrual Calculation. Vacation shall be accrued on a monthly basis by dividing twelve (12) into the number of eligible vacation hours per year, as set forth in Section I above, to which the employee is eligible to receive based upon the employee's years of service with the City. Section 5. Use of Vacation. An employee may use vacation hours to avoid the loss of pay for hours absent from the job, provided the employee has already accrued the vacation hours. This does not preclude the employee from being disciplined if the absence from the job is not approved, is unjustified, or otherwise is in violation of City policies and practices. ARTICLE IX LEAVES OF ABSENCE Section 1. Leaves of Absence Without Pay. The City Manager may grant a permanent employee a leave of absence for a specific purpose, without pay, for a period not to exceed up to one (1) year. The City Council may, upon recommendation of the City Manager, grant a permanent employee a leave of absence for a specific purpose, with pay, not to exceed one (1) year. No such leave shall be granted except upon written request of the employee. Approval shall be in writing and a copy filed with the Human Resources Office of the City. Upon expiration of a regularly approved leave, the employee shall be reinstated in the position held at the time leave was granted. The employee shall report promptly upon the expiration of any leave granted. Failure to report within a twenty -four (24) hour period after expiration of leave shall be considered a voluntary resignation. Except as may be provided by law, no employment or fringe benefits such as, but not limited to, sick leave, vacation, health insurance, retirement or any other benefit shall accrue to any employee during leave of absence without pay. Section 2. Health Insurance Premiums. An employee on approved leave may elect to pay the premiums due in order to maintain health insurance benefits during the term of such leave. (Also refer to Family Leave policy.) Section 3. Written Notice of Intent to Return. An employee on leave of absence must give the City at least seven (7) days written notice of the employee's intent to return to work. Section 4. Outside Employment While on Leave. An employee, who engages in outside employment, without prior approval of the City Manager, during said leave of absence, - 10 - shall be subject to termination. Any employee who falsified a reason for the request for said leave of absence or any extension of such leave of absence may be terminated for falsifying such request. Section 5. Unpaid Leave and Accumulation of Benefits. Clarification of policy on unpaid leave and accumulation of benefits. In the event an employee has exhausted all accumulated benefit hours and has not returned to work, the employee must apply for a leave of absence or be terminated. Employees shall be notified by the City when all benefit hours have been exhausted. After the employee has been notified, he shall have ten (10) calendar days to apply for leave of absence. Section 6. Sick Leave. A. Sick leave shall be defined as absence from duty because of illness or off the job injury, or exposure to contagious diseases as evidenced by certification from an accepted medical authority. B. Sick leave shall be accrued by covered employees at the rate of eight (8) hours per month. Part -time employees who meet the criteria set forth in Article VII, Section 5, shall accrue sick leave at the rate of six (6) hours per month. Effective January 1, 2006 this program will be discontinued and no additional part -time employees will be eligible for this benefit. City agrees to grandfather the two existing part -time employees who are enrolled in the CaIPERS as of January 1, 2006. Sick leave shall not be considered as a privilege that an employee may use at his discretion but shall be allowed only in cases of necessity and actual sickness or disability. Unused sick leave shall be accumulated without limitation. C. In order to receive compensation while absent on sick leave, the employee shall notify a designated supervisor prior to or within one (1) hour of the time set for beginning duty, unless notification is physically impractical. However, in the event the supervisor is unavailable, the employee must call the Human Resources Office by no later than 8:15 a.m. For any such absence, the employee shall file a written statement with the City Manager stating the cause of the absence. When the absence is for more than three (3) work days the department head concerned may require a physician's certificate stating the cause of absence before said leave shall be approved for compensation by the City Manager. D. The right to benefits under the sick leave plan shall continue only during the period that the employee is employed by the City. This plan shall not give any employee the right to be retained in the service of the City, or any right of claim to sickness disability benefits after separation from the services of the City. E. Notwithstanding anything contained in this Section, no employee shall be entitled to receive any payment or other compensation from the City while absent from duty by reason of injuries or disability received as a result of engaging in employment other than employment by the City, for monetary gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation other than business or activity connected with City employment. F. At the written request of the appointing authority, the City Manager may require an employee to submit to an examination by the City's physician, and if the results of the examination indicate the employee is unable to perform his duties, or in the performance of his duties, exposes others to infection, the employee shall be placed on sick leave without privilege of reinstatement until adequate medical evidence is submitted that the employee is competent to perform his duties or will not subject others to infection. Any employee so examined shall have the right to submit the reports of a competent medical authority of his own selection, and at his own expense, in addition to the report submitted by the City's physician. In the event of a conflict of opinion and /or recommendation of the two (2) physicians, a third physician shall be selected by the first two (2) physicians and the final decision shall be made by the City Manager. G. Upon retirement of an eligible employee, one hundred percent (100 %) of his unused accumulated sick leave shall be deposited into the City Retirement Savings Plan to be used for eligible medical expenses. Effective December 15, 2008, the maximum number of hours that will be deposited is nineteen hundred (1,900). H. In the event of layoff, an employee with ten (10) years of continuous service with the City shall be entitled to the above benefit. I. Accrued sick leave shall be valued for the purposes of Section G above, on the following basis: 1. Sick leave earned prior to June 30, 1974 shall be costed at salary rates in effect on June 30, 1974. 2. Sick leave earned on or after July 1, 1974 shall be costed at the rate prevailing at the end of the fiscal year in which it was earned. 3. Sick leave taken shall be deducted from the oldest, lowest value accrued sick leave first, provided however, when an employee takes sick leave, the employee shall receive each hour of sick leave at the employee's hourly rate in effect at the time of taking sick leave. J. Employees who become entitled to accrue sick leave allowance which has not been used, may convert each two (2) hours of accumulated sick leave to one (1) hour of vacation, after having accumulated six hundred and forty (640) hours of sick leave and providing that not more than forty (40) hours of additional vacation may be so converted in any one fiscal year. K. The City will not harass employees for the use of sick leave or industrial injury leave. Harassment is the persistent criticism of employees who use sick leave or are off because of industrial injury. However, noting the use of sick leave on employee evaluations is not considered harassment. Section 7. Emergency Leave. A. Any employee who is absent from work by reason of attendance upon members of the immediate family whose incapacitation requires the care of such employee, or death in the immediate family of the employee, may be allowed emergency leave with pay, not to exceed six (6) work days per incident on the basis of one -half (.5) work day for each month of regular employment, which is deducted from accumulated sick leave. Immediate family shall include and be limited to, mother, father, grandparents, brother, sister, spouse or child of any eligible employee, or of the spouse of any employee of the City. - 12 - B. For absences under this Section exceeding a total of three (3) working days in any six -month (6) period, a physician's certificate verifying the leave basis may be required by the City Manager or department head. C. All such claims for emergency leave are subject to verification by the City Manager. D. Verified use of emergency leave will not be reflected on the employee's annual evaluation. Section 8. Personal Leave. With approval of the department head, an employee may use up to twenty -four (24) hours of their accrued sick leave per year, on personal matters that are of an unforeseen combination of circumstances that call for immediate action and are family related; or to add one additional hour per holiday as covered in Article VII, Section 1. Such matters shall be considered as those events or occurrences that a reasonable prudent person would not or could not postpone to a subsequent time. An indication of the reason for personal leave shall be explained to the immediate supervisor and shall be granted with his approval. Such personal leave shall not be cumulative from year to year. Personal Leave used as an additional hour of holiday shall not be included in any calculation of an employee's use of sick leave for the purposes of performance evaluation or awards provided by the city. Section 9. Workers' Compensation - Injury on Duty. A. Compensation. If an employee is absent from work by reason of illness or injury determined to be covered by Workers' Compensation, the City shall pay the employee seventy -five percent (75 %) of his regular rate of pay for up to ten (10) work days following the illness or injury in lieu of temporary disability payments. During the period in which the employee receives seventy -five percent (75 %) of regular pay, no State or Federal income tax shall be withheld upon timely request by the employee. If a regular employee is disabled due to an illness or injury covered by Workers' Compensation for a period beyond ten (10) working days, said employee shall be paid one hundred percent (100 %) of his regular rate of pay. Any payments made pursuant to this Section shall not be charged to the employee's sick leave or vacation benefits. All fringe benefits, such as payment of medical and dental insurance premiums shall continue during such paid industrial disability leave. B. Duration. Any such paid industrial disability leave, as described in Section A above, shall extend for a period of up to nine (9) calendar months for each covered injury or illness. Such paid industrial disability leave shall not be authorized after an employee's separation from City service. C. Extended Industrial Disability. In the event that an employee's industrial disability or incapacity extends for a period beyond nine (9) calendar months, the employee shall be entitled to receive temporary or permanent disability benefits pursuant to State Workers' Compensation laws. D. The existing language contained in Article IX, Section 11, of the Personnel Management Rules and Regulations, entitled Workers' Compensation, is hereby superseded by the provisions of this Section and effectively deleted in terms of applicability to employees covered by this Agreement. - 13 - E. If an employee with a Workers' Compensation claim files for a permanent disability rating, he will continue to receive the extended industrial disability wage continuance as detailed in item C above. In no case will an employee's compensation be reduced to the State minimum in lieu of his entitlement to the wage continuance provisions specified above. F. In the event that the Federal income tax laws are changed to provide that temporary disability payments are taxable income, the amount of the wage continuance shall revert from seventy -five percent (75 %) back to one hundred percent (100 %). G. Reclassification of Injured Worker. If, in the opinion of the City, an employee has been found to be permanently, physically incapable of performing the duties of the currently held position, the City may place the employee into another vacant position of equal level or lower within the bargaining unit provided such placement is approved by the appointing authority. Nothing herein shall be construed to prevent such employee from applying for and competing for positions of a higher class or positions represented by other bargaining units. Section 10. Employee Disability Leave. A. An employee that has at least one (1) year of continuous service with the City and who has exhausted all accrued leave (vacation, sick - leave, comp time) due to non - industrial illness or injury can be advanced sick leave time at the rate of seventy -five percent (75 %) of the employee's regular salary according to the following table: Maximum Time Allowance (Hours) Years of Service Total Hours 1 through 5 360 6 through 10 544 Over 10 720 B. Application for disability leave shall be made by the employee to the City Manager through the department head, accompanied by full medical justification from a physician chosen by the City at the direction of the City. Failure to submit to such an examination shall be a basis for terminating disability leave. If the City Manager approves the application, he shall notify the employee of such approval in writing. C. After the employee returns to work, the employee shall reimburse the City for the value of the advanced sick -leave time by having the employee's sick leave accrual for sick - leave reduced by four (4) hours per month and the employee may contribute vacation leave to accelerate the employee's reimbursement to the City for providing the benefits under this Article. D. When the "maximum time allowance" has been reimbursed as set forth above, the employee shall be eligible to apply for additional disability leave; provided that no employee shall receive more than the "total" set forth above for his length of service, during his entire employment with the City. E. Grounds for termination of disability leave by the City Manager shall include, but not be limited to, the following reasons: - 14 - 1. The employee has recovered from his illness or injury. 2. The leave is being used as a pre- retirement leave for purpose of postponing retirement or pension. 3. The disability leave was procured by fraud, misrepresentation or mistake. 4. The employee has not cooperated fully in supplying all information -mat and submitting to any examination requested by the City to determine the existence or continuing nature of the employee's disability. F. In the event an employee becomes ineligible to accrue sick leave or is scheduled to end employment with the City and has not completed the reimbursement schedule for this benefit, the balance due shall be handled by payroll deduction or accounts receivable as applicable. Section 11. Military Leave. Military leave shall be granted in accordance with the provisions of State and /or Federal law. All employees entitled to military leave shall give the appointing power an opportunity, within the limits of military regulations, to determine when such leave shall be taken. Section 12. Jury Duty. Effective August 1, 1991, the City will not provide any paid release time for jury duty to employees in classifications represented by the Association. If the State and /or Federal Court Jury Commissioners rescind their present policy of granting exemptions from jury service to persons who do not receive paid release time from their employers, so as to require jury service despite the absence of such pay from their employer, then the City's practice of providing paid release time to employees for jury duty shall be reinstated immediately upon the effective date of such change for the applicable State and /or Federal Court. A. In the event that an employee is called for jury duty and wishes to serve, accrued vacation leave, compensatory time or a leave of absence without pay shall be granted subject to the scheduling requirements of the City. B. In the event that the court fully reimburses the City for the full salary of an employee on jury duty, the City will immediately reinstate the practice of providing paid release time to employees for jury duty. C. In the event that an employee is called for jury duty and the court does not excuse jury service based on the non - payment of salary by the employer, the City shall grant said employee paid release time for the required jury duty. Section 13. Reduction in Salary through Mandatory Unpaid Furlough Leave. The Association agrees that in order to meet the City's economic challenges of Fiscal Year 2012- 2013 and Fiscal Year 2013 -2014, employees will be furloughed up to and not to exceed seventy -two (72) hours in mandatory unpaid furlough leave during each fiscal year. The City commits that it shall affirmatively review in September 2012 for Fiscal Year 2012 -2013 to determine if the total of seventy -two (72) mandatory unpaid furlough leave hours will be needed before implementation. The City agrees to meet and confer in June 2013 to discuss the need for up to and not exceeding seventy -two (72) hours in mandatory unpaid furlough leave in - 15 - Fiscal Year 2013 -2014 if the revenues fall below the projected amount and /or the expenditures exceed the projected amount. With advance department head approval, furlough leave hours may be voluntarily taken in increments of up to nine (9) hours. In the event more mandatory non -paid furlough leave hours are taken (not to exceed 72 hours) by an employee than are needed after appropriate fiscal review, the City shall reimburse the employee with the total amount of non -paid furlough leave hours exceeded with an equivalent deposit of vacation hours. ARTICLE X FRINGE BENEFIT ADMINISTRATION Section 1. Administration. The City reserves the right to select the insurance carrier or administer any fringe benefit programs that now exist or may exist in the future during the term of this Memorandum of Understanding. Section 2. Selection and Funding. In the administration of the fringe benefit programs, the City shall have the right to select any insurance carrier or other method of providing coverage to fund the benefits included under the terms of this Memorandum of Understanding, provided that the benefits of the employees shall be no less than those in existence as of the implementation of this Agreement. Section 3. Changes. If, during the term of this Memorandum of Understanding, any change of insurance carrier or method of funding for any benefit provided hereunder occurs, the City shall notify the Association prior to any change of insurance carrier or method of funding the coverage. ARTICLE XI MEDICAL, DENTAL AND LIFE INSURANCE Section 1. Medical Insurance. A. Kaiser Permanente Health Maintenance Organization (HMO). 1. Effective July 1, 2012, the City agrees to maintain the fully- insured $10 co -pay plan with Kaiser Permanente for unit employees without an employee contribution towards coverage for employee plus qualified dependent(s), 2. Effective July 1, 2012, no other medical insurance coverage options are available for unit employees except for the Kaiser Permanente HMO plan. 3. In the event there is a cost increase to Kaiser Permanente HMO premiums or if the fiscal review of the City's projected City -wide medical cost savings of $1.5 million does not continue in Fiscal Year 2013 -2014, a reopener in February 2013 will be necessary to discuss the employer contribution and /or implementation of - 16 - the California Public Employees' Retirement System (CaIPERS) medical insurance program. B. Employee Waiver of Medical Coverage. The City agrees to permit an employee to waive City- sponsored medical coverage as follows: 1. The employee presents written proof to the Human Resources Office that he and his qualified dependent(s) are covered by another non - City- sponsored medical plan; and, 2. The employee notifies the City during the enrollment period upon hire or during the City's announced annual open enrollment period. The City agrees that the employee who is qualified to waive coverage shall receive eighty one dollars ($81.00) per month if waiver eligibility is for "employee only" coverage, one hundred sixty -two dollars ($162.00) per month if waiver eligibility is for "employee plus one" coverage, or two hundred twenty -nine dollars ($229.00) per month if waiver eligibility is for "employee plus family" coverage. The eligible amount will be added to the employee's paycheck or will be placed in the employee's account of the City's deferred compensation plan. Section 2. Dental Insurance. A. Dental HMO Plan. The City shall continue to make a maximum contribution of thirty - one dollars and ninety -five cents ($31.95) per month to a dental HMO benefit package for the employee and his qualified dependent(s) any amounts necessary to fund existing benefits in excess of the amounts which the City is obligated to contribute set forth above shall be borne by the employee. B. Dental PPO Plan. Effective January 1, 2009 (start of a new benefit year), the City agrees to increase the annual maximum benefit amount under the Delta Dental Premier (PPO) coverage payable from one thousand dollars ($1,000.00) to two thousand dollars ($2,000.00). For the rate that will be effective July 1, 2011 and each year thereafter, the City shall calculate the City and employee contribution as follows: In May of each year the City shall calculate the overall premium rate based on claims experience, Delta administrative fees and an industry trending projection. The difference between the City contribution in effect at the time of the rate calculation and forty -four dollars and forty -five cents ($44.45) will be multiplied by the percent of the overall premium rate increase from the year before. That number will then be added to the City contribution to become the new City contribution. The employee contribution will be determined by subtracting the new premium rate by the new City contribution. That amount will be included in the memo that is sent to all employees during the month of June for the re- enrollment period. An example of the calculation is shown below: Current City $31.95 Current Employee $37.52 Total $69.47 As of July 1, 2006 Increase for new cap $10.00 Current rate Increase New Amts New City $ 31.95 $ 10.00 $ 41.95 New Employee $ 37.52 $ 37.52 Total $ 79.47 As of July 1, 2007 Increase in costs $ 10.00 New City $ 41.95 $ 10.00 $ 51.95 New Employee $ 37.52 $ 37.52 Total $ 79.47 $ 89.47 As of July 1, 2008 New Amts % increase 5% $ 93.94 Cap cost Increase New city $ 51.95 $ 20.00 $ 1.00 $ 52.95 New Employee $ 37.52 $ 40.99 Total $ 93.94 As of July 1, 2009 % increase 5% $ 98.64 New City $ 52.95 $ 21.00 $ 1.05 $ 54.00 New Employee $ 40.99 $ 44.64 Total $ 98.64 Section 3. Life Insurance. Each employee covered by this agreement shall be provided with a group term life insurance benefit of $10,000.00. ARTICLE XII RETIREMENT Section 1. California Public Employees' Retirement System (CaIPERS) Coverage. A. First Tier Retirement Formula. Effective August 19, 2002, the City amended the CaIPERS contract to provide the benefit known as 2.7% @ age 55 retirement formula. B. Second Tier Retirement Formula. Effective January 11, 2012, the City amended the CaIPERS contract to provide the benefit known as 2% at 60 second tier retirement formula, as set forth in Government Code Section 21353. C. Employee CaIPERS Contribution — First Tier Retirement Formula. In accordance with existing practice and Government Code Sections 20636 (c) (4), and 20691, the City will pay the employee's (member) CaIPERS contribution equal to eight percent (8 %) and report this contribution as compensation earnable (referred to as reporting the value of Employer Paid Member Contribution (EPMC) as special compensation). 1. Effective the pay period that includes July 1, 2012, employees shall begin to have deducted, on a pre -tax basis, two percent (2 %) of CaIPERS reportable compensation, pursuant to California Government Code Section 20516(f). 2. Effective the pay period that includes July 1, 2013, employees shall have deducted an additional two percent (2 %) of CaIPERS reportable compensation, for a total of four percent (4 %), on a pre -tax basis, pursuant to Government Code Section 20516 (f). 3. Should an employee be mandated by a change in law or other action to contribute any portion of the required employee (member) contribution to CaIPERS, the City shall take all action necessary to reduce the deduction then being made pursuant to California Government Code Section 20516(f), above, by the amount of the mandated employee contribution. 4. The City shall take action, if necessary, to pass a resolution setting forth that all deductions or contributions under this Section shall be regarded as a pick -up of retirement costs pursuant IRC 414(h)(2). D. Employee (Member) CaIPERS Contribution — Second Tier Retirement Formula. All eligible employees hired on or after January 11, 2012 shall be enrolled in the second tier 2% @ 60 retirement formula and will pay the full seven percent (7 %) employee (member) contribution for the entire term of their employment. Such payment will be handled on a pre -tax basis by way of a bi- weekly payroll deduction. E. Survivor /Death Benefits. Effective July 13, 2009, the City implemented the CaIPERS contract amendment to include: (a) the Level 4 1959 PERS Survivor's Benefit program (Section 21574) and (b) the Pre - Retirement Optional Settlement 2 Death Benefit (Section 21548). Section 2. Retiree Medical Annuity. An employee who retires from the City of Downey on or after July 1, 2012, shall be entitled to participate in the City- sponsored medical plan under the Kaiser Permanente HMO plan or the Kaiser Permanente Senior Advantage plan and the City shall contribute up to a maximum of $98.00 per month toward the premium for employee only coverage, provided: A. At the time of retirement the employee has a minimum of ten (10) years of service, or is granted a service- connected disability retirement; B. At the time of retirement the employee is employed by the City; and C. Effective the day after official separation from the City the employee has been granted a retirement allowance by the CaIPERS. D. The City's obligation to pay up to a maximum of ninety -eight dollars ($98.00) per month towards the premium in the City plan shall be modified downward or cease during the lifetime of the retiree upon the happening of any one of the following: 1. During any period the retiree is eligible to receive or receives health insurance coverage at the expense of another employer the payment will be suspended. "Another employer" as used herein means private employer or public employer or self - employed or the employer of a spouse. As a condition of being eligible to receive the premium contribution set forth above, the City shall have the right to require any retiree to annually certify that the retiree is not receiving any such paid health insurance benefits from another employer. If it is later discovered that misrepresentation has occurred, the retiree will be responsible for reimbursement of those amounts inappropriately expended and the retiree's eligibility to receive benefits will cease. 2. If the retiree becomes eligible to enroll, automatically or voluntarily, in Medi -cal or Medicare, the City's plan shall provide secondary coverage only and the City's contribution rate set forth above shall be adjusted downward accordingly. 3. In the event the Federal government or State government mandates an employer- funded health plan or program for retirees, or mandates that the City make contributions toward a health plan (either private or public plan) for retirees, the City's contribution rate set forth above shall be first applied to that plan. If there is any excess, that excess may be applied toward the City medical plan as supplemental coverage provided the retiree pays the balance owing for such coverage if any. 4. Upon the death of the retiree, this benefit shall cease. E. It is understood and agreed that the annual amount contributed by the City to fund the Retiree Medical Annuity on behalf of the employees, shall be included as an item of compensation in total compensation survey comparisons. - 20 - PROBATIONARY PERIOD ARTICLE XIII TUITION REIMBURSEMENT Section 1. With prior approval of the City Manager, employees may be reimbursed for tuition and books for courses taken to improve their value to the City. Tuition shall be reimbursed for courses as recommended by the department head with job related justification and approved by the City Manager. Employees must receive a passing grade in order to be reimbursed for the course. Reimbursement shall be made at the rate of tuition charged at California State University /Los Angeles for courses on the quarter system, and California State University/ Long Beach for courses on the semester system. The employee will be reimbursed for required books only. ARTICLE XIV Section 1. An original or promotional appointment will be tentative and subject to a probationary period of not less than six (6) months, except that the City Manager may extend the probationary period for a class up to an additional six (6) months or for a marginal probationer for up to an additional three (3) months. Should the appointing authority desire to terminate any probationary employee, the appointing authority shall notify such employee no less than two (2) weeks prior to termination. Section 2. If the service of the probationary employee has been satisfactory to the appointing authority, then the appointing authority shall file with the Human Resources Director a merit rating including a statement, in writing, to such effect and stating that the retention of such employee in the service of the City is desired. If such a statement is not filed, the employee will be deemed to be unsatisfactory and his employment terminated at the expiration of the probationary period. Section 3. All probationary periods shall extend to the first day of the month following the period of probation. Section 4. During the probationary period an employee may be rejected at any time by the appointing power without cause and without the right of appeal. SENIORITY Section 1. Seniority Date. Employee seniority is the length of continuous service of the employee with the City from his most recent date of hire or rehire. period. ARTICLE XV A. No employee shall acquire any seniority until he has completed his probationary B. When an employee has completed his probationary period, his seniority shall date from date of hire. Section 2. Layoffs. A. Whenever, in the judgment of the City Council, it becomes necessary to lay off employees, the City may abolish any position covered by this Agreement. Any employee holding an abolished position will be subject to layoff and have no right to demand that written charges or reasons therefore be filed, and shall have no right of appeal or hearing. B. Seniority shall be observed in affecting layoffs in personnel. The least senior employee in a classification subject to layoff will be laid off first. C. An employee subject to layoff may exercise his seniority (I) within a job family laterally, (2) within a job family to a lower classification, or (3) to a classification previously held by the employee, provided that the employee meets the current qualifications and requirements of the position in which he seeks to exercise seniority, and provided further that any such exercise in seniority shall be subject to a thirty (30) day trial period. An employee subject to layoff because of such exercise of seniority, may, in turn, similarly exercise his seniority subject to the same limitations. If an employee does not successfully complete the thirty (30) day trial period, he will be laid off, provided that the employee may grieve such a layoff and be entitled to Skelly rights. D. For purposes of this section, job families are established as follows: 1. Physical Services - Maintenance Leadworker Maintenance Worker II Maintenance Worker I 2. Water and Sanitation — Water System Leadworker Water System Operator 3. Equipment Maintenance Leadworker Mechanic 4. Transit Driver /Dispatcher Transit Driver 5. Tree Trimmer Leadworker Tree Trimmer 6. Residential Rehabilitation Leadworker Residential Rehabilitation Worker - 22 - Section 3. A separation from service, other than an approved leave of absence or layoff, shall cause the employee to lose his seniority rights. Section 4. Names of employees laid off shall be placed on a re- employment list in order of their seniority and shall remain on such list for a period of two years. During this time, the City will use this list to rehire employees in order of seniority, provided that the employee held the classification being filled or held a classification in the same job family. Section 5. Layoff Notice and Severance Pay. In the event the City decides to contract for work provided by an employee covered by this Agreement, the City will provide at least one month's notice to the affected employee prior to the effective date of the layoff. An employee laid off because the City contracts with a private company to perform his duties will receive a severance payment upon termination equal to three (3) months of the employee's current salary amount. ARTICLE XVI CITY RIGHTS Section 1. Management Rights. The City reserves, retains, and is vested with, solely and exclusively, all rights of Management which have not been expressly abridged by specific provision of this Memorandum of Understanding or by law to manage the City, as such rights existed prior to the execution of this Memorandum of Understanding. The sole and exclusive rights of Management, as they are not abridged by this Agreement or by law, shall include, but not be limited to, the following rights: A. To manage the City generally and to determine the issues of policy. B. To determine the existence or non - existence of facts which are the basis of the management decision. C. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services. D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. E. Methods of financing. F. Types of equipment or technology to be used. G. To determine and /or change the facilities, methods, technology, means, and size of the work force by which the City operations are to be conducted. H. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City. I. To assign work to and schedule employees in accordance with requirements as determined by the City and to establish and change work schedules and assignments. - 23 - J. To relieve employees from duties for lack of work or similar non - disciplinary reasons. K. To establish and modify productivity and performance programs and standards. L. To discharge, suspend, demote, or otherwise discipline employees for proper cause. M. To determine job classifications and to reclassify employees. N. To hire, transfer, promote and demote employees for non - disciplinary reasons in accordance with this Memorandum of Understanding and applicable Resolutions and Codes of the City. O. To determine policies, procedures and standards for selection, training and promotion of employees. P. To establish employee performance standards including, but not limited to, quality and quantity standards; and to require compliance therewith. Q. To maintain order and efficiency in its facilities and operations. R. To establish and promulgate and /or modify rules and regulations to maintain order and safety in the City which are not in contravention with this Agreement. S. To take any and all necessary action to carry out the mission of the Agency in emergencies. Section 2. Exercise of Management Rights. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the exercise of management's rights shall impact on employees of the bargaining unit, the City agrees to meet and confer with representatives of the Association regarding the impact of the exercise of such rights, unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding or in Personnel Rules and Salary Resolutions and Administrative Regulations which are incorporated in this Agreement. By agreeing to meet and confer with the Association as to the impact and the exercise of any of the foregoing City rights, management's discretion in the exercise of these rights shall not be diminished. Section 3. Contracting Out. The City agrees that it will notify the Association of any known or anticipated layoff, reduction in class or reclassification of unit members resulting from a decision to contract work to private sector employees which is ordinarily performed by members of the bargaining unit. The City will meet and confer upon the impact of the consequences regarding the decision to contract out the above referenced work. The Association agrees that the decision to contract any work is the exclusive right of the City. Nothing herein shall prevent the City from taking all necessary action to carry out its mission during emergencies. A. If the City proposes to contract out services currently performed by unit employees, the Association shall have the right to submit a bid on the services. The City shall provide employees with the same bid specifications as those provided to prospective contractors. EMPLOYEE ORGANIZATIONAL RIGHTS AND RESPONSIBILITIES Section 1. Agency Shop Agreement - Legislative Authority. The parties mutually understand and agree that under the Meyers Milias Brown Act (Government Code Section 3500 et seq.) all employees who are in classifications represented by the Downey City Employees' Association - Maintenance Unit have the right to join or not join the Association. However, the enactment of a local "Agency Shop" requires that as a condition of continuing employment, employees in the respective bargaining unit must either join the Association or pay to the Association a service fee in lieu thereof. Such service fee shall be established by the Association, and shall not exceed the standard initiation fee, periodic dues and general assessments of the Association. Employee shall be defined as full time having successfully completed their probationary period. Section 2. Election. ARTICLE XVII A. The agency shop provisions contained in this agreement shall only go into effect if a simple majority of voting eligible unit members cast votes in favor of agency shop in an election as provided in this Agreement. B. To determine whether employees in the unit wish to be covered by an agency shop provision, an election will be conducted by and in accordance with, procedures established by the California State Mediation and Conciliation Service using a secret ballot. The ballot will state "Do you wish to be covered by an Agency Shop arrangement, which requires all employees to either join the employee organization or pay an agency fee for representation ?" The cost of this election shall be borne by the Association. C. Employees eligible to vote in this election shall be all employees in classifications represented by the Association on the payroll for the most recent month for which data is available. D. The State Mediation and Conciliation Service shall investigate any objections to the conduct of the election and decide matters pertaining to any challenged ballots. Section 3. Association Dues /Service Fees. A. Agency Shop as used in this Article means an organizational security arrangement as defined in Government Code Section 3502.5 and applicable law. B. Commencing within thirty (30) days of the State Mediation and Conciliation Service's certification of approval of the agency shop election results, the Human Resources Office shall provide all current employees and any employees hired thereafter, with an authorization notice advising them that Agency Shop for the Association has been enacted pursuant to State law and an agreement exists with the Association, and that all employees subject to the Agreement must either join the Association, pay a service fee to the Association, or provide proof of membership in a religious organization which holds historic opposition to membership in a labor organization. Such notice shall include a form for the employee's signature authorizing a payroll deduction of Association dues, a service fee or a charitable contribution equal to the service fee. Said employees shall have fourteen (14) calendar days from the date they receive the form to fully execute it and return it to the Human Resources Office. - 25 - C. If the form is not completed properly or returned within fourteen (14) calendar days, the City shall commence and continue a monthly payroll deduction of service fees from the first regular biweekly paychecks of such employee each month. The effective date of Association dues, service fee, or charitable contribution shall begin no later than the beginning of the first regular biweekly paycheck of the month commencing fourteen (14) calendar days after receipt of the authorization form by the employee. D. As to non - members objecting to the Association spending their agency fee on matters unrelated to collective bargaining and contract administration, the amount of the agency fee charged shall not reflect expenditures which the courts have determined to be non - chargeable, including political contributions to candidates and parties, members only benefits, charitable contributions and ideological expenditures and, to the extent prohibited by law, shall not reflect expenditures for certain aspects of lobbying, ballot measures, publications, organizing and litigation. E. The Association shall comply with applicable law regarding disclosure and allocation of its expenses, notice to providers of their right to object, provision for agency fee payers to challenge the Association's determinations of amounts chargeable to the objecting non- members, and appropriate escrow provisions to hold contested amounts while the challenges are underway. F. The Association shall make available, at its expense, an expeditious administrative appeals procedure to unit members who object to the payment of any portion of the representation service fee. Such procedure shall provide for a prompt decision to be made by an impartial decision -maker jointly selected by the Association and the objecting provider(s). A copy of such procedure shall be made available upon request by the Association to non- members and the City. G. The foregoing description of permissible agency fee charges and related procedures is included herein for informational purposes and is not intended to change applicable law. H. The employee's earnings must be sufficient after the other legal and required deductions are made to cover the amount of the dues or fees authorized. When an employee is in a non -pay status for an entire pay period, no withholding will be made to cover the pay period from future earnings. In the case of an employee in a non -pay status only during part of the pay period, whose salary is not sufficient to cover the full withholding, no deduction shall be made. In the case of an employee who is receiving short term disability pay (75% pay) during a pay period, no deduction shall be made. In this connection, all other legal and required deductions (including health care and insurance deductions) have priority over Association dues and service fees. Section 4. Religious Exemption. A. Any employee who is a member of a bona fide religion, body or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall upon presentation of active membership in such religion, body, or sect, not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, in lieu of periodic dues, initiation fees or agency shop fees, to pay sums equal to the dues, initiation fees or agency shop fees to a nonreligious, non -labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three of these funds, designated in a memorandum of understanding between the City and the Association, or if the memorandum of understanding fails to designate the funds, then to any such fund chosen by the employee. Proof of the payments shall be made on a monthly basis to the City as a condition of continued exemption from the requirement of financial support to the Association [Govt. Code Section 3502.5(c)]. B. Declarations of, or applications for, religious exemption and any other supporting documentation shall be forwarded to the Association within fourteen (14) calendar days of receipt by the City. The Association shall have fourteen (14) calendar days after receipt of a request for religious exemption to challenge any exemption granted by the City. If challenged, the deduction to the charity of the employee's choice shall commence but shall be held in escrow pending resolution of the challenge. Charitable contributions shall be made by regular payroll deductions only. Section 5. Rescission. The agency shop provision in this memorandum of understanding may be rescinded by a majority vote of all the employees in the unit covered by the memorandum of understanding, provided that: A. A request for such a vote is supported by a petition containing the signatures at least thirty percent (30 %) of the employees in the unit; B. The vote is by secret ballot; C. The vote may be taken at any time during the term of the memorandum of understanding, but in no event shall there be more than one rescission vote taken during that term. Notwithstanding the above, the City and the Association may negotiate, and by mutual agreement provide for, an alternative procedure or procedures regarding a vote on an agency shop agreement [Govt. Code Section 3502.5(d)]. D. If a "rescission vote" is approved by unit members during the term of a current Memorandum of understanding, the Association agrees not to petition for or seek Agency Shop status for the duration of the current memorandum of understanding. Section 6. Indemnification. The Association shall indemnify, defend, and hold the City harmless against any liability arising from any claims, demands, or other action relating to the City's compliance with the agency fee obligation including claims relating to the Associations use of monies collected under these provisions [Govt. Code Section 3502.5(b)]. The City reserves the right to select and direct legal counsel in the case of any challenge to the City's compliance with the agency fee obligation, and the Association agrees to pay any attorney, arbitrator, or court fees related thereto. - 27 - PROHIBITED CONDUCT ARTICLE XVIII NO STRIKE - NO LOCKOUT Section 1. The Association, its officers, agents, representatives and /or members agree that during the term of this Agreement they will not cause or condone any strike, walkout, slowdown, sick -out, or any other job action withholding or refusing to perform services. Section 2. The City agrees that it shall not lockout its employees during the term of this Agreement. The term "lockout" is hereby defined so as not to include the discharge, suspension, termination, layoff, failure to recall or failure to return to work of employees of the City in the exercise of its rights as set forth in any of the provisions of this Agreement or applicable ordinance or law. Section 3. Any employee who participates in any conduct prohibited in Section 1 above, shall be subject to termination by the City. Section 4. In addition to any other lawful remedies or disciplinary actions available to the City, if the Association fails, in good faith, to perform all responsibilities listed Section 1 above, the City may suspend any and all of the rights, privileges, accorded to the Association under the Employee Relations Resolution in this Memorandum of Understanding including, but not limited to, suspension of recognition of the Association, grievance procedure, right of access, check -off, the use of the City's bulletin boards and facilities. ASSOCIATION RESPONSIBILITY Section 1. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Prohibited Conduct, Section 1 above, the Association shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this Memorandum of Understanding and unlawful and they must immediately cease engaging in conduct prohibited and return to work. Section 2. If the Association performs all of the responsibilities set forth in Association Responsibility, Section 1 above, its officers, agents and representatives shall not be liable for damages for prohibited conduct performed by employees who are covered by this Agreement. ARTICLE XIX GRIEVANCE PROCEDURE Section 1. Grievance. Grievance shall be defined as a dispute between the Association, employee or employees and the City, regarding interpretation or application of specific provisions of this Agreement, personnel rules, or departmental rules and regulations. Section 2. Conduct of the Grievance Procedure. A. An employee may request the assistance of another person of his own choosing, who is not a representative of another recognized bargaining organization, in preparing and presenting his grievance at any level of review, or may be represented by the Association, or may represent himself. The employee shall not suffer any reprisal from management for utilizing the grievance procedure set forth herein. B. Any retroactivity on monetary grievances shall be limited to the date that the grievance was filed, in writing, except in cases where it was impossible for the employee to have had prior knowledge of an accounting error. C. All time limits specified may be extended to a definite date by mutual agreement of the employee or his Association representative, and the decision making management representative involved at each step of the grievance procedure. Such mutual agreement shall be evidenced in writing and signed by the employee or Association representative and management representative. Section 3. Grievance procedure shall provide for the following steps; except for grievances which are a result of disciplinary action, which shall begin at Step Two. Step One. An employee must attempt first to resolve a grievance on an informal basis through discussion with his immediate supervisor within ten (10) working days from the date of the alleged incident or action giving rise to the grievance. If, after such discussion, the employee does not believe the problem has been satisfactorily resolved, he shall have the right and obligation to discuss it with his supervisor's immediate supervisor, if any, and his department head, if necessary. Every effort shall be made to find an acceptable solution by these informal means at the most immediate level of supervision. At no time may an informal process go beyond the department head concerned. In order that this informal procedure may be responsive, all parties involved shall expedite this process. In no case may more than thirty (30) calendar days elapse from the date of the alleged incident or action giving rise to the grievance, and the filing of a written grievance in Step Two, or the grievance shall be barred and waived. Step Two. Department Head Response. If the grievance is a result of disciplinary action which has been processed through the "Skelly Process," an appeal may be filed at Step 4 of this procedure. If the non - disciplinary grievance is not resolved in Step One, of if no answer has been received within five (5) working days from the presentation of the oral grievance, the employee may, within thirty (30) calendar days from the date of the incident giving rise to the grievance, present the grievance in writing to his department head. Failure of the employee to take this action will constitute termination of the grievance. The department head shall further review and discuss the grievance with the employee and shall render its decision and comments, in writing, and return them to the employee within ten (10) working days after receiving the grievance. Step Three. Management Representative. If the grievance is not resolved in Step Two, the employee may within ten (10) working days after receiving the department head's decision, present the grievance in writing to the designated management representative for processing. Failure of the employee to take this action will constitute termination of the grievance. In the event the employee is not being represented by the Association, the designated management - 29 - representative shall attempt to resolve the grievance. If the employee is being represented by the Association the designated management representative shall convene a joint meeting of the Association and himself, within five (5) working days, in an attempt to resolve the grievance. In the event the grievance is not satisfactorily adjusted or settled through discussion at this level, management shall advise the employee and /or employee Association, in writing, within ten (10) working days as to its position on the grievance. Step Four. Grievance Hearing. If the grievance is not resolved in Step Three, the employee may, within ten (10) working days of the receipt of the written position from management representatives, present a "request for hearing" in writing to the Human Resources Director. However, the only grievances which may be submitted for review are matters which have resulted in a suspension without pay, reduction in pay, demotion, termination, or otherwise have monetary value to the employee. Failure of the employee to take this action will constitute termination of the grievance. The Human Resources Director shall request from the State Mediation and Conciliation Service, or mutually agreed upon alternative organization, a list of seven (7) neutral hearing officers. In the event that the parties cannot agree upon a mutually acceptable hearing officer from the list of seven, the parties shall alternately strike names from the list, with the City striking the first name. The identity of the last remaining individual on the list will be selected as the hearing officer. The hearing officer shall preside over a full and fair evidentiary hearing and, within thirty (30) calendar days of its conclusion, render a written decision that includes findings of fact and a recommendation to the City Manager. That decision shall be served jointly upon the grieving party and the City Manager. Step Five. City Manager's Decision. Within thirty (30) calendar days of receipt of the decision of the hearing officer, the City Manager shall, in writing, adopt, modify or reject that decision. The decision of the City Manager shall be the final administrative decision. ARTICLE XX MISCELLANEOUS Section 1. Substance Abuse Policy. The City of Downey and the Association have a vital interest in maintaining safe, healthful and efficient working conditions. Being under the influence of a drug or alcohol on the job may pose serious safety and health risks not only to the user but to co- workers and the citizens of Downey. The possession, use or sale of an illegal drug or of alcohol on the job also poses unacceptable risks for safe, healthful and efficient operations. "On the job" means while on City premises, at work locations, or while on duty or being compensated on an "on call status." The City of Downey and the Association recognize that their future is dependent on the physical and psychological well being of all employees. The City and the Association mutually acknowledge that a drug and alcohol -free work environment benefits Downey's employees and citizens. The purpose of this section is to define the City's drug and alcohol policy as well as the possible consequences of policy violation. A. Possession, sale, use or being under the influence of drugs or alcohol while on the job is strictly prohibited. This prohibition shall not apply to legitimate undercover activities of Police Officers which are undertaken in accordance with the direction of the Police Department. B. When reasonable suspicion exists, the City may require an employee to submit to a medical examination, including, but not limited to, a substance screening. Substance screening means the testing of urine or other body fluids as reasonably deemed necessary by a physician to determine whether an employee has a restricted substance in their system. 1. Reasonable suspicion is cause based upon 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. 2. Post - accident testing under this Article shall be conducted based on reasonable suspicion as defined in this Section and shall not be automatic, unless as required by law per Department of Transportation (DOT) Federal Motor Carrier Safety Administration Regulations (FMCSA) (refer to City of Downey Controlled Substance and Alcohol Misuse Policy and Procedures Manual). C. Any manager or supervisor requesting an employee to submit to a substance screening shall document in writing the facts constituting reasonable suspicion and shall give the employee a copy. The employee shall be given an opportunity to provide additional facts. An employee who is then ordered to submit to a substance abuse screening may request to be represented. Because time is of the essence in substance screening, a representative must be available within a reasonable time or the employee will then be ordered to submit to substance screening. An employee who refuses to submit to a substance screening may be considered insubordinate and shall be subject to disciplinary action up to and including termination. D. The supervisor, or designee, shall transport the suspected employee to the testing facility. Testing shall occur on City time and be paid for by the City. Employee urine samples, or other body fluids, will be by a certified system which includes methods or mechanisms designed to assure the integrity of the sample. The facility used for testing shall be certified by the National Institute on Drug Abuse and comply with established guidelines for "chain of custody" to insure that identity and integrity of the sample is preserved throughout the collecting, shipping, testing and storage process. E. Any positive test for alcohol or drugs will be confirmed by a scientifically sound method. An employee who tests positive on a confirmatory test will be given the opportunity to discuss the results with a physician to be designated by the City. The employee should be prepared at that time to show proof of any valid medical prescription for any detected substance or to otherwise explain, if he or she so chooses, a positive test result. F. While use of medically prescribed medications and drugs is not per se a violation of this policy, this policy shall establish that no employee shall operate a City vehicle or dangerous machinery or equipment while taking any kind of medication or drugs which are clearly marked that they may cause significant drowsiness or impair an employee's performance. An employee shall notify his /her supervisor, before beginning work, when taking such medications or drugs. 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 physician designated -31 - by the City may be required. The City reserves the right to send an employee home on sick leave under this circumstance. G. Employees with substance abuse problems are encouraged to participate voluntarily in the City- sponsored Employee Assistance Program (EAP). Assistance through the EAP may be sought by an employee with complete confidentiality and without adverse consequences to his /her employment. Employees should be aware, however, that a request for assistance through the EAP will not insulate the employee from disciplinary action already contemplated. Depending upon the facts surrounding the reasonable suspicion determination, positive test result, and /or other violation of this policy or other City /department rules and regulations, the City may refer an employee to the EAP. Such referral could, at the discretion of the City, be made available to the employee as an alternative to disciplinary action. Referral would be subject to agreement by the employee to enroll, participate in and successfully complete a rehabilitation and /or counseling program and other terms and conditions in a "Last Chance Agreement." 1. It is the City's intent to use the EAP option for first offenders except the City reserves the right to discipline for those offenses which are a significant violation of City /department rules and regulations or where violation did or could have resulted in serious injury or property damage. H. Department of Transportation (DOT) Controlled Substance and Alcohol Testing Program 1. Administration. In accordance with City of Downey Resolution No. 5934, policy and procedures for compliance with the Federal Motor Carrier Safety Administration (FMCSA) Regulations (49 CFR Parts 40 and 382) shall remain in effect for those employees who are required to possess and maintain a commercial driver's license as a condition of employment for the performance of safety sensitive duties. This program is documented in the City of Downey Controlled Substance and Alcohol Misuse Policy and Procedures Manual which is incorporated by reference in this Agreement. As applicable, the City's policy and procedures will be amended to comply with changes in law. Unless otherwise designated, the Human Resources Director is the Designated Employer Representative (DER) and shall be responsible for overseeing compliance and implementation of this City's DOT Controlled Substance and Alcohol Testing Program. 2. Consequences of a Positive Controlled Substance and /or Alcohol Test. A covered employee who tests positive for a controlled substance and /or alcohol may be subject to disciplinary action, up to and including termination from employment. As a result of a positive controlled substance and /or alcohol random test, a temporary non - safety sensitive job assignment for an employee who is removed from the performance of safety sensitive duties or who is restricted from driving non - commercial City vehicles, may be approved by the department head based on the availability of meaningful work to meet operational need. An employee must use accrued leave time or request personal leave of absence without pay if time off from work is necessary for any treatment or rehabilitation program. The costs of - 32 - rehabilitation or treatment services, whether or not covered by the employee's medical plan, are the ultimate responsibility of the employee. The cost of a split specimen under a random test shall be paid by the City or reimbursed to the employee on a negative result only. The cost of a controlled substance and /or alcohol test under follow -up testing is the responsibility of the employee. Section 2. Lateral Transfer Procedures. A. Announcement of Vacant Position. Prior to the initiation of an open- competitive or promotional examination to fill a vacant position, notice of the vacancy shall be posted for a period of five (5) working days at the worksite of all employees in the same classification who potentially may be interested in a lateral transfer. The announcement shall specify the position title, the nature of the work to be performed, the name of the official to contact to express interest, and the final filing date. B. Application for Transfer. Employees interested in making a lateral transfer into a vacant position within their classification shall express their interest in writing to the official indicated in the announcement prior to the end of the work shift on the final filing date. C. Examination for Transfer. All employees who have expressed an interest in a lateral transfer shall be given due consideration by the official responsible for filling the vacancy by virtue of a personal interview or other examination deemed appropriate by the department head and the Human Resources Director. D. Selection for Transfer. Among the factors to be considered by management in the selection of employees for lateral transfers are seniority, skills, knowledge, abilities, work record and job performance. Section 3. Labor - Management Committee. Representatives of the Association and management shall meet on a quarterly basis for purposes of improving communication and resolving labor relations matters. Agendas shall be agreed upon in advance, with both parties having equal opportunity to submit items. Any matter agreed upon by both parties may be discussed; but discussion does not constitute waiver of access to the grievance process. Chairmanship of the committee shall be alternated among the parties. Section 4. Leave Entitlement. The City will comply with State and Federal laws with regard to family leave. The City has issued Administrative Regulation 430 to implement compliance and by reference becomes part of this Agreement. Section 5. Court Referrals. The City will assign referrals to help City employees with their routine job assignments. A Public Works Supervisor will assign court referrals as best suits the City and the abilities of the court referral. The supervisor will provide assignments and any necessary guidelines to City employees who are assigned a court referral. City employees who are assigned court referrals will follow the supervisor's guidelines. City employees may be required to provide instructions to the court referrals in order to implement the supervisor's assignments. At the end of the work day, the City employees will report to the supervisor the work completed by the court referrals. - 33 - Court referrals are to be treated with respect, but any court referral that is threatening, disruptive, or refuses to work should be returned to the yard and sent home. Court referrals should wear orange mesh shirts over their regular clothes. Court referrals may not operate City vehicles or motorized equipment. Records will be kept of the hours worked by court referrals and will be forwarded to the Downey Municipal Court on a regular basis. The division will maintain these records. Section 6. American with Disabilities Act. The City will comply with the Americans with Disabilities Act (ADA). Section 7. Reopener. If the City implements additional retiree medical benefits to the DCEA Miscellaneous Unit or Public Safety Auxiliary Unit and the Association requests to meet; the City agrees to meet and confer over retiree medical benefits. ARTICLE XXI SOLE AND ENTIRE MEMORANDUM OF UNDERSTANDING Section 1. It is the intent of the parties hereto that the provisions of this Memorandum of Understanding shall supersede all prior agreements and memorandums of understanding, or memorandums of agreement, or contrary salary and /or personnel resolutions and ordinances of the City, oral or written, expressed or implied, agreements between the parties or understandings between the parties, and shall govern their entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This Memorandum of Understanding is not intended to conflict with Federal or State law. Section 2. Notwithstanding the provisions of Section 1 above, there exists within the City of Downey, certain personnel resolutions, ordinances and departmental rules and regulations. To the extent that this Agreement does not specifically contravene provisions of these personnel resolutions, ordinances, departmental rules and regulations; such personnel resolutions, ordinances and departmental rules and regulations are specifically incorporated herein. ARTICLE XXII WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT During the term of this Memorandum of Understanding, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours, and terms and conditions of employment, whether or not covered by this Memorandum or in the negotiations leading thereto and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this Memorandum. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this Memorandum. - 34 - ARTICLE XXIII EMERGENCY WAIVER PROVISION In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this Memorandum of Understanding or the Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is over, the Association shall have the right to meet and confer with the City regarding the impact on employees of the suspension of these provisions in the Memorandum of Understanding and any Personnel Rules and policies. ARTICLE XXIV SEPARABILITY Should any provision of this Memorandum of Understanding be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this Memorandum of Understanding shall remain in full force and effect for the duration of this Memorandum of Understanding. ARTICLE XXV TERM OF THIS MEMORANDUM OF UNDERSTANDING The term of this Memorandum of Understanding shall commence on April 1, 2012 and shall continue in full force and effect until March 31, 2014. ARTICLE XXVI RATIFICATION AND EXECUTION The City and the Association acknowledge that this Memorandum of Understanding shall not be in full force and effect until ratified by the Association and adopted by the City Council of the City of Downey. Subject to the foregoing, this Memorandum of Understanding is hereby executed by the authorized representatives of the City and the Association and entered into this 24 day of July, 2012. DOWNEY CITY EMPLOYEES' CITY OF DOWNEY: ASSOCIATION - MAINTENANCE UNIT: By: By: Irma Youssefieh, Human Resources Director Phil Cokkinos, President Approved as to form: Yvette Abich Garcia, City Attorney By: By: By: Doug Kelley, Vice President Carlos Regalado, Secretary Bob Bryan, Treasurer EXHIBIT A CLASSIFICATIONS REPRESENTED BY THE DOWNEY CITY EMPLOYEES' ASSOCIATION - MAINTENANCE UNIT Equipment Maintenance Leadworker Maintenance Worker I Maintenance Worker 11 Maintenance Leadworker Mechanic Residential Rehabilitation Worker 11 Residential Rehabilitation Leadworker Transit Driver Transit Driver /Dispatcher Tree Trimmer Tree Trimmer Leadworker Water System Leadworker Water System Operator