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CONTRACT 3288 - PERM Memorandum of Understanding CLOSED32 88 -, COMPREHENSIVE MEMORANDUM OF UNDERSTANDING POLICE MANAGERS `ASSOCIATION JULY 19 2003 - JUNE 309 2008 Page 1 of 27 32 8 8 - . . ,. TABLE OF CONTENTS ARTICLE 1 GENERAL PROVISION: Section 1.01 Preamble Page 7 Section 1.02 Management Rights Page 7 Section 1.03 Savings Clause Page 8 Section 1.04 No- Strike Clause Page 8 Section 1.05 Association Dues Deduction Page 8 Section 1.06 Association Hearing Cost Contribution Page 8 Section 1.07 Completion of Meeting and Negotiating Page 8 Section 1.08 Non - Discrimination Page 9 ARTICLE 2 SALARY: Section 2.01 Salary Page 9 Section 2.02 Salary Schedule Calculation Metholodology Page 10 Section 2.03 Step Advancement — Accelerated Page 10 Section 2.04 Notice Requirement to Withhold Step Increase Page 11 ARTICLE 3 EDUCATIONAL INCENTIVE PAY: Section 3.01 Educational Compensation Page 11 ARTICLE 4 TUITION AND BOOK REIMBURSEMENT PROGRAM: Section 4.01 Policy and Eligibility Page 11 Section 4.02 Undergraduate Studies ,9 Page 11 Section 4.03 Post- Graduate Studies Page 11 Section 4.04 Tuition Reimbursement Program - Page 12 Effective August 1, 2003 Section 4.05 Certification Requirement for Page 12 Educational Compensation ARTICLE 5 PROMOTIONS: Section 5.01 Salary Differential upon Promotion Page 12 ARTICLE 6 NO- SMOKING CLAUSE: Section 6.01 Establishment Page 13 Page 2 of 27 w rte; ARTICLE 7 OVERTIME COMPENSATION: Section 7.01 Pay for Shift Schedule Page 13 ARTICLE 8 PHYSICAL FITNESS INCENTIVE PROGRAM: Section 8.01 Purpose Page 13 Section 8.02 Department Policy Page 13 Section 8.03 Program Components Page 13 ARTICLE 9 COMPREHENSIVE MEDICAL EVALUATION: Section 9.01 Annual Examination Page 14 ARTICLE 10 EXECUTIVE LEAVE: Section 10.01 Entitlement Page 14 ARTICLE 11 COMPENSATORY TIME: Section 11.01 Maximum Accrual Page 15 Section 11.02 Shooting and Physical Fitness Bank - Page 15 Maximum Accrual Section 11.03 Firearms Qualification Page 15 ARTICLE 12 HOLIDAY LEAVE: Section 12.01 Holidays Page 15 Section 12.02 Personal Leave /Floating Holiday Page 16 Section 12.03 Holiday Pay Page 16 ARTICLE 13 SICK LEAVE: Section 13.01 Sick Leave — Leave With Pay Due to Page 16 Illness — Accumulation of Same Section 13.02 Sick Leave Accumulated for Physical Page 16 Examination Section 13.03 Sick Leave — Payment of One -Half of Accrual Page 16 Section 13.04 Sick Leave Accrued — Payment on Page 16 Termination Prior to December 1 Section 13.05 Payment of Sick Leave Accrual - Page 17 Disability Retirement Section 13.06 Payment of Sick Leave Accrual — After 20 Page 17 Years of City Service Page 3 of 27 32 8 8 Section 13.07 Payment of Sick Leave Accrual — Death of Page 17 Employee Section 13.08 Sick Leave Accrued — Payment of On Page 17 Separation From The City of El Segundo Section 13.09 Sick Leave Accumulated for Care of Page 17 Immediate Family ARTICLE 14 VACATION LEAVE: Section 14.01 Vacation Time Use Page 17 Section 14.02 Vacation Accrual Schedule Page 17 Section 14.03 Vacation Accrual Based on Total Service Page 18 In a PERS or Comparable Agency Section 14.04 Vacation Time Accrual — Payment in Lieu Of Page 18 Section 14.05 Vacation Time Accrual — For Temporary Page 18 Industrial Disability ARTICLE 15 BEREAVEMENT LEAVE: Section 15.01 Bereavement Leave With Pay Page 18 ARTICLE 16 JURY DUTY: Section 16.01 Provision Page 18 ARTICLE 17 EXCEPTIONAL LEAVE: Section 17.01 Provision Page 18 ARTICLE 18 PERSONAL EMERGENCY LEAVE: Section 18.01 Personal Emergencies — Use of Eligible Leaves Page 19 ARTICLE 19 HEALTH BENEFITS: Section 19.01 Flexible Benefit Plan Page 19 Section 19.02 Flexible Benefit Plan — City Contribution Page 19 Section 19.03 Payment of Employee Contribution to PERS Page 19 On Flexible Pay Benefit Section 19.04 Medical Contract Page 19 Section 19.05 City Medical Contribution Page 19 Section 19.06 Optical, Dental and Life Insurance Page 20 Section 19.07 Employee Assistance Program (EAP) Page 20 Page 4 of 27 Section 19.08 Medical Insurance Continuation — Page 20 On Duty Death ARTICLE 20 UNIFORMS AND SAFETY EQUIPMENT: Section 20.01 Provision of Uniforms and Safety Equipment Page 20 Section 20.02 Uniform Cleaning Allowance Page 21 ARTICLE 21 RETIREMENT BENEFITS: Section 21.01 PERS Retirement Formula Page 21 Section 21.02 PERS Pickup Reported as "Compensation Page 21 Earnable" Section 21.03 Optional Contract Provisions Page 21 Section 21.04 Retiree Health Insurance Contribution Program Page 21 ARTICLE 22 DIRECT DEPOSIT AND FLEXIBLE SPENDING ACCOUNT: Section 22.01 Direct Deposit Page 21 Section 22.02 Flexible Spending Account Page 22 ARTICLE 23 COMPUTER LOAN PROGRAM: Section 23.01 Initial Loan Page 22 ARTICLE 24 DEFERRED COMPENSATION: Section 24.01 Deferred Compensation Plan (457) Page 22 Section 24.02 Deferred Compensation Plan (401 A) Page 22 ARTICLE 25 CATASTROPHIC LEAVE PROGRAM: Section 25.01 Purpose Page 22 Section 25.02 Definition Page 22 Section 25.03 Procedures Page 22 ARTICLE 26 LAYOFF PROCEDURES: Section 26.01 Grounds for Layoff Page 23 Section 26.02 Notice to Employees Page 23 Section 26.03 At -Will Employees Page 23 Section 26.04 Procedures for Layoff Page 23 Section 26.05 Breaking Ties Page 23 Page 5 of 27 Section 26.06 Reduction to a Vacant Position Page 23 Section 26.07 Displacement Rights Page 24 Section 26.08 Salary Placement Page 24 Section 26.09 Reemployment List Page 24 Section 26.10 Letter of Layoff Page 24 Section 26.11 Rights on Reemployment Page 24 Section 26.12 Appeal Page 24 ARTICLE 27 GRIEVANCE PROCEDURES: Section 27.01 Definition of Terms Page 25 Section 27.02 Time Limits Page 25 Section 27.03 Procedure Page 25 Section 27.04 Matters Excluded From The Page 26 Grievance Procedure Section 27.05 Conferences Page 26 ARTICLE 28 TEMPORARY SERVICE IN HIGHER CLASSIFICATION: Section 28.01 Acting Pay Page 26 ARTICLE 29 POLICIES: Section 29.01 Occupational Injury and Illness Policy Page 26 Section 29.02 Disability Retirement Policy Page 26 Section 29.03 Fitness for Duty Policy Page 27 ARTICLE 27 TERM OF AGREEMENT Section 30.01 Term Page 27 Page 6 of 27 EL ARTICLE 1 GENERAL PROVISIONS: Section 1.01 Preamble ERSTANDING ERS' ASSOCIATION, 1- CALIFORNIA This Memorandum of Understanding is entered into with reference to the following: A. The El Segundo Police Managers' Association (hereinafter referred to as the "Association ") is the exclusively recognized employee organization for all personnel employed by the City of El Segundo (hereinafter referred to as "City") in the unit of representation including the following classifications and positions (hereinafter referred to as affected employees): Police Lieutenant and Police Captain. During the life of this agreement, such exclusive recognition may only be modified pursuant to the provisions of City Resolution No. 3208. B. In the interest of maintaining harmonious relations between the City and the affected employees, authorized representatives of the City Council of City and the Association have met and conferred in good faith, exchanging various proposals concerning wages, hours and the terms and conditions of employment of affected employees within the lawful scope of representation of Association pursuant to California Government Code Sections 3500 et. seq. and City Resolution Number 3208. C. The authorized representatives of the City Council of City and the Association have reached a mutual agreement as to certain wages, hours and other terms and conditions of employment of the affected employees, this memorandum of which shall be submitted to the City Council of City for its consideration and if adopted, for implementation of its terms and conditions by appropriate ordinance, resolution or other lawful action. This Memorandum of Understanding is a comprehensive statement of agreed -upon wages, hours and other terms and conditions of employment. D. Unless otherwise provided for herein, all terms and conditions described herein shall be effective upon adoption of the MOU by the City Council. Section 1.02 Management Rights A. Except as limited by the specific and express terms of this Memorandum of Understanding, the City hereby retains and reserves unto itself all rights, powers, authority, duty, and responsibilities confirmed on and vested in it by the laws and the Constitution of the State of California and/or United States of America. B. The management and the direction of the work force of the City is vested exclusively in the City, and nothing in this Memorandum of Understanding is intended to circumscribe or modify the existineright of the City to direct the work of its employees; hire, promote, demote, transfer, assign, and retain employees in positions within the City, subject to the rules and regulations of the City; suspend or discharge employees for proper cause; maintain the efficiency of governmental operations; relieve employees from duties because of lack of work; take action as may be necessary to carry out the City's mission and services in emergencies; and to determine the methods, means, and personnel by which the operations are to be carried out. Page 7 of 27 Section 1.03 Savings Clause If any provision or the application of any provision of this Memorandum of Understanding shall be rendered or declared invalid by any final court action or decree, or by reason of any preemptive legislation, the remaining sections of this memorandum shall remain in full force and effect for the duration of said memorandum. Section 1.04 No- Strike Clause A. The El Segundo Police Managers' Association agrees that during the term of this Memorandum of Understanding their members employed by the City of El Segundo will not strike or engage in any work stoppage or slowdown, engage in any concerted failure to report for duty, or fail to perform their duties in whole or in part for the purpose of inducing, influencing, or coercing a change in the conditions, or compensation, or the rights, privileges, or obligations of employment. B. The Association also agrees that their members employed by the City of El Segundo will not refuse to cross a picket line in performance of their normal and customary duties, nor will the aforementioned employee organization attempt to influence, either directly or indirectly, other employees to honor an existing picket line in the performance of their normal and customary duties as employees. C. It is understood that any employee violating this provision may be subject to discipline up to and including termination by the City. D. It is understood that in the event this provision is violated the City may be entitled to withdraw any rights, privileges or services provided for in this Agreement or in City policy from any employee and/or the Association. Section 1.05 Association Dues Deduction The City agrees to: A. Provide official dues deductions for all employees who subscribe to Association membership; B. Provide official payroll deductions for City- approved Association insurance and welfare plans, not to exceed five programs. Section 1.06 Association Hearing Cost Contribution Commencing on July 1, 2003, the Association will pay for one -half of the costs incurred in connection with Los Angeles County Civil Service Commission hearings to a maximum of $3,000 per calendar year. Section 1.07 Completion of Meeting and Negotiating A. This Memorandum of Understanding contains all of the covenants, stipulations and provisions agreed upon by the parties regarding terms and conditions of employment. Therefore, for the life of this Agreement, neither party shall be compelled to meet and confer with the other party concerning any mandatory meet and confer issue which is covered by this Agreement. B. The wages, hours, benefits and other terms and conditions of employment covered by this Memorandum of Understanding, including those wages, hours, benefits and other terms and conditions of employment in existence and spelled out by the City's Personnel Rules, Administrative Code and other Ordinances and Resolutions approved by the City Council prior to this Memorandum of Understanding, although not specifically referred to by this Memorandum of Understanding, shall constitute the wages, hours, benefits and other terms and conditions of Page 8 of 27 employment for the term of this Memorandum of Understanding. Disagreements involving the interpretation and application of this section will be resolved by accessing the Association's Grievance Policy at Level IV (City Manager). Section 1.08 Non - Discrimination A. The Association and the City recognize and agree to protect the rights of all employees to join and/or participate in protected Association activities or to refrain from j oining or participating in Association activities. B. The Association and the City agree that they shall not illegally discriminate against any employee because of race, color, sex, age, national origin, political or religious opinions or affiliations and shall act affirmatively to accomplish equal employment opportunities for all employees. The Association and the City shall reopen any provision of this Agreement for the purpose of complying with any final order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this Agreement in compliance with State or Federal anti - discrimination laws. ARTICLE 2 SALARY: Section 2.01 Salary A. Police Captains and Lieutenants 1. Salary tables for Police Captains and Police Lieutenants, reflecting a 3% salary increase, effective July 1, 2003, are depicted on Attachment A of the Memorandum of Understanding. 2. Effective July 1, 2004, the salary schedule will be increased by 3.0 %. 3. Effective July 1, 2005, the salary schedule will be increased by 4.0 %. 4. Effective July 1, 2006, the salary schedule will be increased by 5.0 %* 5. Effective July 1, 2007, the salary schedule will be increased by 5.0 %* * subject to Article 19, Section 19.05, these salary increases may be decreased to offset the cost of the medical insurance premiums. (See Article 19, Section 19.05) B. Contingency Increases Subject to the provisions of Article 19, Section 19.05 below, the salary schedule may increase by as much as 10% (in the aggregate) over the last 4 years of the contract. Such increases are contingent upon new business license revenues and new net sales tax revenues (collectively "New Revenues "). New Revenues are defined as business license revenues and sales tax revenues generated from businesses entering and doing business in the City for the first time after September 30, 2003 and does not include: a. Businesses doing business in the City as of September 30, 2003 that expand or transfer locations within the City or consolidate their business from locations outside the City to within the City; b. New businesses that are formed after September 30, 2003 but are controlled or owned (majority interest) by businesses located in the City as of September 30, 2003; or c. Mergers and acquisitions that in anyway involve businesses that were located Page 9 of 27 F' 6 in the City as of September 30, 2003 even if the resulting entity is an entity that was not located in the City as of September 30, 2003. Additionally, financial incentives of any type whatsoever to any business generating New Revenues and payments the City is required to make to any entity based upon the providing of such incentives shall be deducted from the New Revenues for purposes of determining the amount of revenues eligible for the contingent payments contemplated hereunder. New sales tax revenue will be determined by confirming with the City's sales tax consultant a list of new sales tax producers generated after September 30, 2003 and evaluated at the end of each fiscal year. For purposes of this Agreement "new sales tax producers" shall mean the same thing as new businesses, as described above. Any new sales tax counted toward the 10% contingency will be net of any revenue or offsetting costs that may be required by, or as a part of, a development or other tax sharing agreement. The Association agrees that it will not interfere with or otherwise impede the City's ability to enter into a tax sharing/reduction agreement or similar arrangement with new businesses. 2. The revenue contained in the contingency pool is cumulative and any eligible revenue generated beginning in year one of this Agreement will be designated to the contingency pool over the term of the contract. 3. Employees are eligible to receive salary increases beginning in the second year of this Agreement. The unit will receive a 1 % salary increase for each $120,000 in increased new revenue (as described above); provided however, that pursuant to Article 19, Section 19.05, the first .83% of contingency money will be used to offset the cost of anticipated medical insurance premium increases. For example, if the new revenue by the second year is $240,000, the unit will receive a 1.17% salary increase; if the new revenue by the second year is $60,000, the unit will receive no salary increase and third year revenues will have to be more than $39,600 (.33 %) in order to generate a salary increase for the unit). Increases will be pro- rated, as necessary. The determination regarding funding for these increases will be made following the receipt of revenue figures for the applicable fiscal year. 4. The maximum salary increase that can be generated by this contingency formula is capped at 4.0% each year beginning with the October 2004 payment date. There will be no cap for the year ending October 2008, provided however, that the cumulative maximum contingency payment for the time period October 1, 2004 through October 1, 2008 may not exceed 10 %. Although contingency increases, if any, will be effective on the first day of the first pay period in October of each year (beginning October 2004 and ending October 2008), the actual payment may be delayed due to the need to determine available funding (see above) and the processing of the appropriate payroll documents. Section 2.02 Salary Schedule Calculation Methodology The phrase "total pay" as used herein is the sum of gross regular pay and deferred pay calculated in dollars and cents rounded off to two (2) decimal places to the right of the decimal point, and adjusted to reflect the intent to maintain the specific and proportional percent differences between salary ranges and salary steps previously approved by the City. Section 2.03 Step Advancement - Accelerated The Police Chief may recommend to the Director of Administrative Services for approval by the City Manager that an employee receive an accelerated advancement of part or all of the next salary step increase in the Basic Salary Range (A — E Steps) based on exemplary job performance. The accelerated salary advancement shall not change the affected employee's anniversary date. Page 10 of 27 sL88 .. Section 2.04 Notice Requirement to Withhold Step Increase The City shall have the option during or after the term of this agreement to provide employees written notice of the intent to withhold a salary step increase and the reasons for same no later than the end of the pay period which begins after the employee's anniversary date. ARTICLE 3 EDUCATIONAL INCENTIVE PAY: Section 3.01 Education Compensation Police Captains and Police Lieutenants, upon obtaining a Master's Degree from an accredited college or university, shall receive educational incentive compensation in an amount equal to 8% of base salary per month. ARTICLE 4 TUITION AND BOOK REIMBURSEMENT PROGRAM: Section 4.01 Policy and Eligibility The following college -level tuition and book reimbursement program shall be applicable to all unit members: Section 4.02 Undergraduate Studies (Studies undertaken in pursuit of an Associate's or a Bachelor's degree) A. The City shall reimburse each affected employee in an amount equal to 100% of tuition and book expenditures incurred while employed by the City and while a student at any accredited college or university having its campus in the State of California. However, the tuition reimbursement described herein, shall not exceed the per -unit tuition cost required by the University of California or California State University, whichever is higher. B. Tuition and book reimbursement shall be provided only for those classes in which a certified college or university transcript evidences the employee attaining a grade of "C" or better (or where classes are taken "pass /fail," evidence must be provided of a "pass" grade) in classes approved pre - enrollment by the Chief of Police or his/her designee. Section 4.03 Post - Graduate Studies (Post- Graduate studies are defined as those undertaken in pursuit of a degree beyond a Bachelor's). A. The City shall reimburse each affected employee pursuing post - graduate studies in an amount equal to 100% of tuition and book expenditures incurred while employed by the City and while pursuing said studies at the University of California or California State University; B. The City shall reimburse each affected employee pursuing post - graduate studies at other accredited institutions, in an amount equivalent to 80% of the tuition and book expenditures incurred while employed by the City and while pursuing said studies; C. Tuition and book reimbursement shall be provided only for those classes in which a certified university transcript evidences the employee attaining a grade of "C" or better (or where classes are taken "pass /fail," evidence must be provided of a "pass" grade) in classes approved pre - enrollment by the Chief of Police or his/her designee. Section 4.04 Tuition Reimbursement Program — Effective August 1, 2003. A. The City will reimburse each applicable employee for the cost of undergraduate and graduate education, in an amount not to exceed 100% of the cost of tuition and book/supplies at UCLA or UCI, whichever is higher. All employees who are enrolled in graduate or undergraduate programs Page 11 of 27 as of August 1, 2003, shall be permitted to complete their respective graduate or undergraduate degrees under the terms of the former Tuition Reimbursement program (See Sections 4.02 and 4.03 above). B. Tuition and book reimbursement shall be provided only for those classes in which a certified university transcript from an accredited institution having its campus in the State of California, evidences the employee attaining a grade of "C" or better (or where classes are taken "pass /fail," evidence must be provided of a "pass" grade) in classes approved pre - enrollment by the Chief of Police or his/her designee. Section 4.05 Certification Requirement for Educational Compensation Employees who participate in the Educational Reimbursement Program will be required to sign the following agreement: Educational Reimbursements — "I certify that I successfully completed the course(s), receiving at least a grade of "C" of better, or a grade of "pass ", if the course was offered on a pass /fail basis. (Attach a copy of grade verification). "Further, I agree to refund the City or have deducted from my final paycheck, any educational reimbursement funds received under this program if I should leave the City's employ, voluntarily or through termination, with cause, within one year after completion of the course work for which I am to receive reimbursement, in accordance with the following schedule." Employee Separation Percentage Payback 1 month after course completion 100% refund 2 months after course completion 100% refund 3 months after course completion 90% refund 4 months after course completion 80% refund 5 months after course completion 70% refund 6 months after course completion 60% refund 7 months after course completion 50% refund 8 months after course completion 40% refund 9 months after course completion 30% refund 10 months after course completion 20% refund 11 months after course completion 10% refund 12 months after course completion 0% refund ARTICLE 5 PROMOTIONS: Section 5.01 Salary Differential upon Promotion In all cases where an employee is promoted to a classification regulated by this Memorandum of Understanding for which a higher rate of compensation is provided, then such employee so promoted shall enter into such higher classification at the lowest rate of compensation provided for such higher classification which exceeds by not less than five percent the base rate of compensation, excluding special assignment pay, received by said employee in such given classification at the time of such promotion, unless otherwise ordered by the City Council. All supervisors shall be paid a higher base salary than any of their regularly assigned subordinated (exclusive of longevity pay, educational incentive pay, special assignment, or any other form of compensation). In the event that a supervisor is paid a base salary equal to or lower than one of their regularly assigned subordinate's base salary, the supervisor shall be granted a higher base salary (exclusive of longevity pay, educational incentive pay, special assignment or any other form of compensation) even if the supervisor's new base salary is not the same as an existing pay step in the Salary Schedule. Notwithstanding the above, the supervisor's salary shall not exceed the salary range for which he /she is eligible by length of service and performance. Page 12 of 27 3288 . L ARTICLE 6 NO- SMOKING CLAUSE: Section 6.01 Establishment All personnel employed on or after July 1, 1988, shall, as a condition of initial and continued employment, refrain from smoking and/or using tobacco products at any time on or off duty. ARTICLE 7 OVERTIME COMPENSATION: Section 7.01 Pay for Shift Schedule Police Lieutenants shall be paid time and one -half rates for time worked on shift basis in excess of their regular work shift, in any one day or more than forty hours per week, excluding hours worked involving hold -over for non -shift work, or work due to staff meetings or training. ARTICLE 8 PHYSICAL FITNESS INCENTIVE PROGRAM: Section 8.01 Purpose It is the purpose of the El Segundo Police Department Physical Fitness Program to improve the level of physical fitness and health among sworn police personnel so that their field performance will be enhanced and also to improve their overall degree of wellness as an enrichment to their personal lives as well as a productivity benefit to the City. Section 8.02 Department Policy It will be the policy of the Police Department to work with employees individually and assist those that need to improve their lifestyle habits in order that fitness levels can be improved. There is no "failure" in participation, only the identification of needs and the recognition of strengths. Section 8.03 Program Components The Physical Fitness Program will consist of two basic components; they are a fitness examination and a fitness assessment. A. Fitness Examination: The examination will be comprehensive and will include the cardio - vascular system, the pulmonary function, a complete blood work -up, body composition analysis, and the lower digestive tract as well as a strength assessment. It will also include a complete medical history review with a physician and a subsequent review of the findings as well as an exercise /nutritional prescription. B. Fitness Assessment: 1. The fitness assessment is the voluntary component of the program and will be administered by a department fitness coordinator and fitness committee. 2. The assessment will be a test to measure components of physical fitness which are: a. Cardio - vascular b. Strength c. Body composition d. Flexibility Page 13 of 27 The assessment will be administered quarterly and will apply standards developed and used by the Cooper Aerobics Institute, Dallas, Texas, and will include sliding scales based on age and sex. 3. A profile will be developed following assessment which will categorize participants into levels of fitness. Incentive provisions would then reward participants depending upon their fitness level. 4. Rewards would also be available for significant achievements and improvements. These rewards will be in the form of T- shirts, sports bags, sporting equipment and other similar incentives. It is thought that these types of rewards could be influential in maintaining interest and enthusiasm in those participants who would not otherwise qualify for fitness achievement categories. Police Captains and Police Lieutenants will receive paid time off for physical fitness as follows: Fitness Level Time Off per Quarter (3 Calendar Months) - Fair 4 hours Good 8 hours Excellent 16 hours ARTICLE 9 COMPREHENSIVE MEDICAL EVALUATION: Section 9.01 Annual Examination Police Lieutenants and Police Captains are provided a fully -paid, comprehensive medical examination each year. The City currently utilizes the Westchester Medical Group /Center for Heart and Health for the examinations. The results of the examination include extensive written documentation and feedback, fitness consultation, recommended further testing and/or adjustments to current lifestyle practices and ongoing monitoring. ARTICLE 10 EXECUTIVE LEAVE: Section 10.01 Entitlement Police Lieutenants and Police Captains shall be granted not less than 24 hours and not more than forty hours executive leave with pay per calendar year which may be used for personal business, attendance at educational courses, or for additional vacation. Employees receive a minimum of three days per year. In addition, those employees in positions which require more than 40 hours' service annually at times other than their normal duty hours, shall be granted up to two additional executive leave days with pay if not otherwise directly compensated. The Police Chief shall determine the number of authorized executive leave days (3, 4 or 5) employees are entitled to receive and allow said employees to use executive leave only in proportion to number of overtime hours he or she actually works. Partial year's service in a position shall cause executive leave to be prorated as follows: Complete Months' Service in Calendar Executive Leave Days ( *) Eligible For Year 3 per yea 4 perms 55per year 1 0 0 0 2 0 0 1 3 1 1 1 4 1 1 2 5 2 2 2 A 2 2 3 Page 14 of 27 3288 7 2 3 3 8 3 3 4 9 3 3 4 10 3 4 5 11 3 4 5 12 3 4 5 Personnel may not accrue executive leave beyond each calendar year in which it is earned. * A day equals 8 hours. ARTICLE 11 COMPENSATORY TIME: Section 11.01 Maximum Accrual A separate bank shall be established for the accumulation of compensatory time off, with a maximum accrual of eighty (80) hours. The time bank shall be divided into separate banks for shooting and physical and compensatory time off and the compensatory time bank shall be credited first with the remainder credited to the fitness and shooting pay. Section 11.02 Shooting and Physical Fitness Bank - Maximum Accrual A separate bank shall be established for the accumulation of shooting and physical fitness time off, with a maximum accrual of fifty (50) hours. Employees exceeding the maximum allowable accrual will receive pay in lieu of compensatory time. There is no payoff of accrued time upon separation from employment. Section 11.03 Firearms Qualification Police Lieutenants and Police Captains will receive paid time off for firearms qualification as follows: Class Distinguished Expert Expert Sharpshooter Marksman Qualifying ARTICLE 12 HOLIDAY LEAVE: Section 12.01 Holidays Time Off for Proficiency ner Ouarter (3 Calendar Months 8 hours 6 hours 4 hours 2 hours 0 hours Police Captains shall be entitled to the following holidays: January I" The third Monday in February The last Monday in May July 4`h The first Monday in September November 11th Thanksgiving day and Friday thereafter December 24`h December 25th December 31" Page 15 of 27 3288 provided, however, (a) that in the event any of the hereinbefore mentioned holidays falls on the last day an employee is off on his or her regular days off period, the following day shall be observed as a holiday for the purpose of this section; provided, further, however, (b) that in the event any of the hereinbefore mentioned holidays falls on the first day of an employee's regular days off period, the previous day shall be considered as a holiday for the purpose of this section. Notwithstanding the above, this provision does not apply to Police Lieutenants who receive pay in lieu of time off for holidays. Section 12.02 Personal Leave/Floating Holiday In addition to the holidays enumerated in Section 10.01, each Police Captain who has completed six (6) months of service shall be entitled to select one (1) day per calendar year as a Personal Leave/Floating Holiday with the approval of the Police Chief after a minimum of seven (7) days prior notice. Notwithstanding the above, this provision does not apply to Police Lieutenants who receive pay in lieu of time off for holidays. The City may, at its discretion, grant additional hours of leave which may be utilized in the calendar year in which it is granted. Section 12.03 Holiday Pay Police Lieutenants shall be paid for 96 hours in lieu of holidays once a year on or about the 10th day of December. In the event of the death of an employee or upon separation from service, employees shall be paid holiday pay on a pro -rata basis. Additionally, employees serving as Lieutenants less than one year shall be paid holiday pay on a pro -rata basis. Upon the employee's request and department head approval, time off may be taken in lieu of holiday pay. ARTICLE 13 SICK LEAVE: Section 13.01 Sick Leave - Leave With Pay Due to Illness - Accumulation of Same Sick Leave with pay may be granted for an absence from duty because of personal illness, injury or legal quarantine not compensable under the provisions of the Workers' Compensation Laws of the State of California. Employees shall accumulate sick leave at the rate of one eight -hour day accumulation for each month's service not to exceed a maximum of 1056 hours. Hours worked in addition to a regular work week shall not entitle an employee to additional sick leave accumulation. Sick leave taken by an employee shall be deducted from his or her accumulated credit. Section 13.02 Sick Leave Accumulated for Physical Examination The City will allow up to two days of accumulated sick leave each year to be used for purposes of physical examinations, subject to submission of a doctor's verification. Section 13.03 Sick Leave — Payment of One -Half of Accrual Effective the first day of December of each year, employees who maintain a balance of 1056 hours of sick leave accrual shall be paid for one -half the sick leave accumulated and not used during the preceding twelve -month period. Payment shall be made on or before December 10. Section 13.04 Sick Leave Accrued — Payment On Termination Prior to December 1 Employees who terminate prior to the first day of December while maintaining a balance of more than 1056 hours of sick leave shall also be paid for one -half of their unused accrued sick leave accumulated since the preceding December 1. Section 13.05 Payment of Sick Leave Accrual — Disability Retirement Page 16 of 27 3288•.,,1 Upon separation from service because of a disability retirement, employees with 5 years of City service will be compensated for 90% of the employee's accumulated unused sick leave at the employee's current pay rate at separation. Section 13.06 Payment of Sick Leave Accrual — After 20 Years of City Service Upon separation from service, employees with 20 years of City service will be compensated for 90% of the employee's accumulated, unused sick leave at the employee's current pay rate at separation. Section 13.07 Payment of Sick Leave Accrual — Death of Employee In the event a member of the Association, while in the City's employ, and who has been employed by the City for 5 years or more in a full -time position, dies with unused sick leave to his or her credit, he or she shall be compensated in an amount equal to eighty percent (80 %) of the value of such sick leave based upon his or her salary at the time of death, without the inclusion of overtime pay or additional compensation. Section 13.08 Sick Leave Accrued — Payment of On Separation From The City of El Segundo A Police Lieutenant or Police Captain who has been employed by the City for 5 or more years who separates from the City with unused sick leave to their credit, will be compensated in an amount equal to one -half the value of such sick leave based upon his or her current salary at the time of separation, without the inclusion or overtime pay or additional compensation. Section 13.09 Sick Leave Accumulated for Care of Immediate Family The City shall allow up to twelve days of accumulated sick leave each calendar year to be used for purposes of medical emergencies, doctor visits and homecare of members of the immediate family. Usage would also be permitted under the following instances: 1. The birth of a child of an employee, and to care for a newborn. 2. The placement of a child with an employee in connection with the adoption or foster care of a child by an employee. 3. To care for a member of the immediate family who has a serious health condition. For the purpose of this section, "immediate family" shall mean the children, parents, grandparents, and siblings of the employee, the employee's spouse or significant other. All applicable sections of City Personnel Rules relative to the documentation and verification of sick leave usage remain in full force and effect. ARTICLE 14 VACATION LEAVE: Section 14.01 Vacation Time Use Employees shall accrue vacation time on a monthly basis. Vacation leaves may be taken only after the employee has completed six months of continuous service with the City. Section 14.02 Vacation Accrual Schedule 1. Twelve working days (96 hours) per year with full salary for first five years of continuous service with the City. Page 17 of 27 3288 - . - 2. Fifteen working days (120 hours) per year with full salary after five years and until the completion of ten years of continuous service. 3. Eighteen working days (144 hours) per year with full salary after eleven years and until the completion of fifteen years of continuous service. 4. Twenty-two working days (176 hours) per year with full salary after fifteen years of continuous service. Section 14.03 Vacation Accrual Based on Total Service Time in a PERS or Comparable Agency Employees who have successfully completed their initial probationary period and/or achieved E step placement in their assigned salary range shall accumulate vacation time based on their total years of service in a PERS or comparable agency. Section 14.04 Vacation Time Accrual — Payment in Lieu Of Employees who have completed one year of service may receive cash payment in lieu of accrued vacation time up to a maximum of one hundred percent the annual accrual to which they are entitled by length of service. Section 14.05 Vacation Time Accrual — For Temporary Industrial Disability Employees on temporary industrial disability may accrue vacation time for longer than two years. ARTICLE 15 BEREAVEMENT LEAVE: Section 15.01 Bereavement Leave With Pay A. In the case of death in the immediate family of the employee or the employee's spouse, a maximum of 24 hours bereavement leave with pay may be granted per incident. A maximum of 40 hours bereavement leave with pay may be granted per incident when the funeral/memorial service is 500 or more miles from City Hall. B. For the purpose of this section, immediate family shall mean the children, parents, grandparents, and siblings of the employee, the employee's spouse or significant other. ARTICLE 16 JURY DUTY: Section 16.01 Provision Absences of affected employees due to jury duty will be governed by City policies and procedures applicable to employees in general. ARTICLE 17 EXCEPTIONAL LEAVE: Section 17.01 Provision The Exceptional Leave Program provides the City Manager discretion to award up to 4 days per calendar year in recognition for extraordinary service of members of the Police Managers' Association, especially where sizable amounts of time are expended outside of normal business hours and beyond the normal requirements of the job. Awarded days may be used for time off or if unused, may be cashed in at the end of the calendar year. Page 18 of 27 3288 ARTICLE 18 PERSONAL EMERGENCY LEAVE: Section 18.01 Personal Emergencies — Use of Eligible Leaves For employee's personal emergencies, that is, a serious illness of an immediate family member of the employee or the employee's spouse and for cases of extreme and unusual hardship or an emergency nature, employees, upon request, shall be entitled to utilize accumulated vacation leave, compensatory time -off, or personal leave day /floating holiday, for which prior notification is required; however, in certain instances, notification requirements may be waived. For the purpose of this section, immediate family shall mean the children, parents, grandparents, and siblings of the employee, the employee's spouse or significant other. ARTICLE 19 HEALTH BENEFITS: Section 19.01 Flexible Benefit Plan Effective with the payroll deduction made for coverage for the month of December, 1986, employees shall be eligible to participate in a Flexible Benefit Plan. Section 19.02 Flexible Benefit Plan — City Contribution Effective with the payroll deduction for the month of July 2002, the monthly contribution by the City shall increase by $100 per month to $800 per month. These benefits shall be used principally for the purchase of employee medical insurance. Section 19.03 Payment of Employee Contribution to PERS on Flexible Pay Benefit A. The City will pay the employees' Public Employees Retirement System (PERS) contribution on the flexible pay benefit. B. Any increase above the current $800 per month flexible pay benefit contribution for medical insurance is non- PERSable and available for medical insurance purposes only. Section 19.04 Medical Contract The City contracts with the California PERS for the Public Employees' Medical and Hospital Care Program for medical insurance. Section 19.05 City Medical Contribution Effective January 1, 2004, the monthly City-paid Health Insurance Premium Contribution will be equal to the average dollar cost of the premium for an employee and two (2) or more dependents for the HMO'S available to employees under the Public Employees' Medical and Hospital Care Program in the southern California area. In recognition of the anticipated increased cost of City paid medical insurance premiums, particularly those beginning in the 2007 and 2008 calendar years, the compensation increases in this MOU will reflect a charge of .83 %. In the event that contingency compensation is generated (See Section 2.01(B)) then the first .83% of the contingency increase will be used to offset the anticipated insurance increase. In the event that contingency compensation is insufficient to offset the .83% cost of insurance, then the guaranteed compensation increase in the fourth and fifth years of the Agreement will be reduced by .415% each year (i.e., July 2006 and July 2007 will be reduced to 4.585 %). During the term of this Agreement, either party may reopen the contract in order to consider alternatives to the PERS medical plan. The City agrees that it will only propose plans that provide for Page 19 of 27 3288 • . a cost- effective, comprehensive medical package for employees and their families that provide comparable benefits to current plan, including, but not limited to, portability. There will be no change in insurance plans prior to the January 2006 plan year without written agreement of the parties. Section 19.06 Optical, Dental, and Life Insurance The City will pay 100% of the premiums for the agreed upon dental, optical and life insurance for employees and eligible dependents. A. The City reserves the right to determine the dental insurance carrier with whom the City will contract for coverage; however, the City agrees to consult with employees through the insurance committee and consider all suggestions and presentations on the insurance plan to be purchased. B. The City will provide every member of the Association with $50,000 of life insurance at City cost. The City reserves the right to determine the insurance carrier with whom the City will contract for coverage. Additional insurance coverage for self (up to $100,000 maximum coverage) and for family members may be purchased at group rates. C. The City shall make available any city-wide improvements to the dental benefit, to the Association. D. Selection of the vision insurance plan carrier shall be made by the City. Section 19.07 Employee Assistance Program (EAP) The City will make available to Association members an Employee Assistance Program which provides confidential assistance, referrals and counseling to employees and members of the immediately family. The program is designed to provide professional assistance and support to help employees and their families resolve problems and issues that affect their personal lives or job performance. Section 19.08 Medical Insurance Continuation — On Duty Death A. If it is determined by the Workers' Compensation Appeals Board and/or the Public Employees' Retirement System that an Association member has died as a direct and proximate result of the performance of duties in the course and scope of his/her employment, then the City shall continue to make group medical premium payments on behalf of the surviving spouse until age 65, Medicare eligibility, whichever comes first, and to the children of the deceased officer until age 18. Said medical premium payments on behalf of the children of a deceased officer shall continue if at age 18, the child commences uninterrupted college enrollment, but not to exceed the age of 23. B. The City-paid medical insurance premiums described herein shall be in an amount required to fund the level of medical insurance benefits which the deceased officer was receiving at the time of his/her death. For example, if at the time of death, the officer was enrolled in a specific HMO Plan, then future premium payments made pursuant to this article shall be in an amount required to maintain comparable plan benefits. ARTICLE 20 UNIFORMS AND SAFETY EQUIPMENT: Section 20.01 Provision of Uniforms and Safety Equipment The City shall provide required uniforms and safety equipment to eligible employees. For purposes of this article, safety equipment shall include a weapon selected by the Police Chief. The value of the uniforms and safety equipment shall not be reported to PERS as compensation earnable. Page 20 of 27 3288. . . Section 20.02 Uniform Cleaning Allowance Patrol Lieutenants shall receive $53 per month of active duty. Non - patrol Lieutenants and Police Captains shall receive $40 per month of active duty. The value of the cleaning allowance will be reported to PERS as compensation earnable. ARTICLE 21 RETIREMENT BENEFITS: Section 21.01 PERS Retirement Formula The City has implemented the 3% at 50 PERS retirement formula for all affected employees. Section 21.02 PERS Pickup Reported as "Compensation Earnable" The City shall pay on behalf of each employee his or her required 9% "employee contribution" to Ca1PERS. Additionally, the City shall report a set dollar amount equal to the nine percent (9 %) "employee contribution" to the California Public Employees' Retirement System as compensation earnable. Said contributions will also be paid on holiday pay received by eligible employees. Section 21.03 Optional Contract Provisions A. The City shall provide "Level 4" 1959 Survivors Benefits B. The City shall provide the Single Highest Year formula. C. The City shall provide the Military Service credit as public service option. Section 21.04 Retiree Health Insurance Contribution Program The City will contribute to a retiree health insurance contribution program for service and disability retirees who participate in the Public Employees' Medical and Hospital Care Program. Effective July 1, 2003, the City contribution for a retiree and all eligible dependents will be a maximum of $806.83 month. Effective January 1, 2004, the City contribution for a retiree and all eligible dependents will be equal to the average dollar cost of the premium for an employee and two (2) or more dependents for the HMO's available to employees under the Public Employees' Medical and Hospital Care Program in the southern California area. ARTICLE 22 DIRECT DEPOSIT and FLEXIBLE SPENDING ACCOUNT: Section 22.01 Direct Deposit It is agreed between the City and the Police Managers' Association that it is in the mutual interest of the City and its employees that all covered employees utilize the currently available direct deposit system. Employees who do not desire to utilize direct deposit shall make their wishes known in writing to the City's Director of Administrative Services, together with a statement of their reasons therefore. Exceptions to this direct deposit policy shall not be unreasonably denied. Page 21 of 27 Section 22.02 Flexible Spending Account The City will maintain the Flexible Spending Account pursuant to the terms and conditions of the Internal Revenue Code. Each employee of the Association is eligible to participate in this voluntary program. The flexible spending account allows for payment of employee paid insurance premiums, non - reimbursed medical expenses and/or dependent care expenses with pre -tax dollars. ARTICLE 23 COMPUTER LOAN PROGRAM: Section 23.01 Initial Loan Employees may apply for up to a $4,000 interest free loan to purchase personal computer hardware and software. Loans are repaid through payroll deductions over a three year period. Outstanding loan balances must be fully paid off at the time an employee separates from the City. ARTICLE 24 DEFERRED COMPENSATION: Section 24.01 Deferred Compensation Plan (457) A deferred compensation plan has been established as a benefit to employees. Each employee is eligible to participate in the plan. Section 24.02 Deferred Compensation Plan (401 A) The City will pay an amount equal to the employee's contribution to deferred compensation up to a maximum of 1% of the employee's total pay, for all Association employees participating in City approved deferred compensation plans. ARTICLE 25 CATASTROPHIC LEAVE PROGRAM: Section 25.01 Purpose To establish a program whereby City employees may donate accumulated time to a catastrophic sick leave bank to be used by permanent, part-time and full -time employees who are incapacitated due to a catastrophic illness or injury. Section 25.02 Definition A catastrophic illness or injury is a chronic or long term health condition that is incurable or so serious that, if not treated, it would likely result in a long period of incapacity. Section 25.03 Procedures A. There is established a joint - employer /employee committee composed of an individual from each recognized employee organization and a representative of City Administration charged with administering the Catastrophic Leave Bank. B. Employees may transfer sick leave, vacation or compensatory leave to the Catastrophic Leave Bank to be donated to an employee who is experiencing catastrophic illness and has exhausted all personal sick leave. Such a transfer can be made on July 1 of each year on forms provided by the City of El Segundo. The employee to receive the donation will sign the "Request to Receive Donation" form allowing publication and distribution of information regarding his/her situation. C. Sick Leave, vacation and compensatory time leave donations will be made in increments of no less than one day. These will be hour for hour donations. Page 22 of 27 3288•,., D. Employees must, at the time of donation, have a minimum of one hundred and twenty (120) hours of accumulated illness /injury leave remaining after a donation has been made. E. The donation of time is irrevocable. Should the recipient employee not use all of the donated time for the catastrophic illness or injury, any balance will remain in the Catastrophic Leave Bank to be administered by the committee and utilized for the next catastrophic leave situation. ARTICLE 26 LAYOFF PROCEDURES: Section 26.01 Grounds for Layoff - Whenever, in the judgment of the City Council, it becomes necessary to reduce the workforce, an employee may be laid off, reduced in classification or displaced by another employee. Such layoff, reduction or displacement shall result from action of the City Manager or his or her designee. The City Manager shall recommend to the City Council each classification to be affected by any such change. Section 26.02 Notice to Employees - An employee filling a full time position shall be given fourteen (14) calendar days prior notice of layoff. Employees transferred, reduced or displaced shall be given five (5) calendar days notice. The City Council may approve a reduction in the notice requirements, if so recommended by the City Manager. Section 26.03 At -Will Employees - The City Manager retains the right to layoff or alter the work assignment of the following employees at any time without notice or right of appeal: emergency employees, temporary or seasonal employees, part-time employees, original probationary employees, promotional probationary employees and employees designated at -will. The promotional probationary employee shall revert to his/her previously held classification and position without loss of seniority. Section 26.04 Procedures for Layoff - A permanent employee in a classification affected by a reduction in force shall be laid off based on seniority in City service, that is the employee with the least City service shall be laid off first, followed by the employee with the second least City service, etc. Seniority shall be determined by hire date. City seniority shall be used to effectuate the procedures set forth in this Article. Seniority for part-time employees shall be calculated as one -half ('/2) time from the date of hire with the City. Section 26.05 Breakine Ties - In cases where two or more employees have the same date of hire (i.e. equal seniority), retention points for job performance shall be credited on the basis of the average of the overall evaluation ratings for the last three (3) years, provided the last rating had been filed more than thirty (30) days prior to the date of the layoff notice. Retention points are as follows: Exceeds Standard- 24 points Meets Standard - 12 points Below Standard - 0 points In the event of a tie in seniority, the employee with the lowest average of retention points shall be laid off first. In the event that one or more of the affected employees do not have overall evaluation ratings for the last three (3) years on file, ties shall be broken by a coin toss. Section 26.06 Reduction to a Vacant Position - An employee designated for layoff as a result of abolition of a position or classification may be offered appointment to a vacant position in a lower classification, if the employee is qualified by education and/or experience for such position. If there is more than one qualified employee to be offered such appointment(s), the offer(s) shall be based on seniority, with the employee with the highest seniority offered the position first, then the next highest seniority, etc. If the employees have the same seniority, then the procedure for breaking ties set forth above shall apply. An employee accepting such appointment shall be placed on the step for the lower classification most closely corresponding, but in no case higher, than the salary step of his/her previously held position, Page 23 of 27 3288. and the employee will be assigned a new salary anniversary date on the effective date of the appointment. Section 26.07 Displacement Rights A. An employee designated for layoff as a result of abolition of a position or classification may displace ( "bump ") an employee in a lower classification in which the employee has prior service, provided the laid off employee has greater seniority than the employee in the lower classification. B. An employee designated for layoff with greater seniority may displace ( "bump ") a less senior employee in a lower classification, for which he /she is immediately qualified to perform. Section 26.08 Salary Placement An employee who is assigned to a lower classification as a result of a displacement (bump) shall be placed on the step of the salary range of the new classification, which is closest to the compensation of the employee in the previous classification, but in no case higher, and the employee will be assigned a new salary anniversary date on the effective date of the appointment. The employee shall, however, retain seniority while his/her name remains on reemployment list or lists. Section 26.09 Reemployment List The names of permanent employees who have been laid off under this section (including employees who have bumped down) shall be placed, in order of seniority from highest to lowest, on a reemployment list for their classification or any lower classification for which the employee is qualified by education and/or experience. Persons on such lists shall retain eligibility for appointment therefrom for a period of three years from the date their names were placed on the list. As a vacancy within a classification or lower related classification becomes available, the name appearing at the top of the list shall be offered the opportunity to fill the vacancy. The name of an individual selected from the list to fill the vacancy who refuses the reemployment offer shall be permanently removed from the reemployment list without right of appeal. Laid -off employees do not earn seniority credit or benefits while on the reemployment list. Section 26.10 Letter of Layoff The City shall provide all employees who were laid off from the City a service letter setting forth that the employee was laid off and is eligible for reemployment. Those employees who were displaced to lower positions will be granted, upon the employee's request, a letter from the City stating the employee was reduced in status as a result of a layoff and is eligible for reemployment to the higher level position. Section 26.11 Riahts on Reemployment If a person is reemployed by the City within three years, the employee's seniority, sick leave and vacation accrual rates shall be reinstated. Any accumulated sick leave and/or vacation earnings shall also be reinstated to the extent that the employee did not receive compensation for such earnings at the time of layoff. Upon reemployment, employees will be placed on the same salary step held at the time of layoff. Section 26.12 Appeal An employee who 1) has not been provided a letter of layoff, per Section 24.10 , the employee shall be treated as if he /she had been terminated for disciplinary purposes and shall be permitted to appeal the decision per the Disciplinary Appeal Procedure; or 2) has not been provided proper bumping or displacement rights, may file an appeal to the Director of Administrative Services. Page 24 of 27 ARTICLE 27 GRIEVANCE PROCEDURE: Section 27.01 Definition of Terms A. Grievance — A grievance is an allegation of a violation, misinterpretation or misapplication of a specific written department or agency rule or regulation or a specific provision of a memorandum of understanding. A grievance is distinct from an appeal in that it is a violation, misinterpretation or misapplication of a specific written department or agency rule and/or policy or a specific provision of a memorandum of understanding. B. Grievant — A grievant is an employee or group of employees allegedly adversely affected by an act of omission of the agency. C. Day — A day is a business day (Monday — Friday). D. Immediate Supervisor — The first level supervisor of the grievant. Section 27.02 Time Limits A. Compliance and Flexibility —With the written consent of both parties, the time limitation for any step may be extended or shortened. B. Calculation of Time Limits — Time limits for the appeal provided in each level shall begin the day following receipt or a written decision of appeal by the employee or employees. C. Failure to Meet Timeliness — Failure at any level of this procedure to communicate the decision on a grievance by the City within the specified time limits shall permit lodging an appeal at the next level of the procedure within the time allotted had the decision been given. If the grievance is not processed by the grievant or grievants in accordance with the time limits, the decision last made by the City shall be deemed final. Section 27.03 Procedure Grievances will be processed following the procedures set forth below. A. Level I — Within ten (10) days of the date the employee reasonable knew or should have known of the incident giving rise to the grievance, the employee should make an effort to resolve the grievance with the employee's immediate supervisor. The supervisor shall hold discussions and attempt to resolve the grievance within five (5) days from the time the employee meets with the supervisor to discuss the employees' grievance. B. Level II — In the event such efforts do not produce a mutually satisfactory resolution, the grievant shall have ten (10) days to file a formal written grievance with the employee's immediate supervisor after the 15 -day time period provided in Level I. The immediate supervisor shall, within 5 days, provide a written response to the grievant. Procedure for Filing a Grievance In filing a formal written grievance, the employee should set forth the following information. a. The specific section of the departmental or agency rules or regulations allegedly violated, misinterpreted or misapplied. b. The specific act or omission which gave rise to the alleged violation, misinterpretation or misapplication. Page 25 of 27 ,3288. c. The date or dates on which the violation, misinterpretation or misapplication occurred. d. What documents, witnesses or other evidence supports the grievants' position. e. The remedy requested. C. Level III — If the formal written grievance is not resolved by the immediate supervisor, the grievant may present the grievance in writing to the department head within five (5) days of the written response from the immediate supervisor. The department head shall respond in writing within ten (10) days. D. Level IV — If the grievance is not resolved by the department head, the grievant may present the grievance in writing to the City Manager within five (5) days of the Department Head's written response. The City Manager or his/her designee will conduct an informal hearing and render a decision. Each party shall have the right to present witnesses and evidence at the hearing. The conclusions and findings of this hearing shall be final. Section 27.04 Matters Excluded From the Grievance Procedure A. The grievance procedure cannot be used for the purpose of resolving complaints, requests or changes in wages, work hours or working conditions. B. The grievance procedure cannot be used to challenge employee evaluations or performance reviews. C. The grievance procedure cannot be used to challenge the merits of a reclassification, lay -off, transfer, denial of reinstatement, or denial of a step or merit increase. D. The grievance procedure cannot be used in cases of reduction in pay, demotion, suspensions or a termination which are subject to the formal appeal process outlined in Ordinance 586. Section 27.05 Conferences Grievant(s) and City representatives, shall, upon mutual agreement, have the right to a conference at any level of the grievance procedure. ARTICLE 28 TEMPORARY SERVICE IN HIGHER CLASSIFICATION: Section 28.01 Acting Pay Where an employee is qualified for and is required for an appreciable period of time to serve temporarily in and have the responsibility for work in a higher class or position, when approved by the City Manager, such employee, while so assigned, shall receive the entrance salary rate of that class or whatever step thereof that is not less than five percent above his or her present rate, whichever is higher. For the purpose of this section, "appreciable period of time" is defined as ten consecutive working days (eight working days if on four /ten plan) or longer. ARTICLE 29 POLICIES: Section 29.01 Occupational Injury and Illness Policy The parties have agreed upon an Occupational Injury and Illness Policy, dated July 22, 2003. Section 29.02 Disability Retirement Policy The parties have agreed upon a Disability Retirement Policy, dated July 22, 2003. Page 26 of 27 32P Section 29.03 Fitness for Duty Policy The parties have agreed upon a Fitness for Duty Policy, dated July 3, 2003. ARTICLE 30 TERM OF AGREEMENT: Section 30.01 Term The term of this MOU shall commence on July 1, 2003 and shall end on June 30, 2008 with regard to all provisions except, however, that the obligation to make the October 2008 payment of contingency revenues, if any, shall survive the June 30, 2008 end date of this Agreement. Signed by the City: Signed by the Association: ATTEST Deputy ty Clerk Page 27 of 27