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2019-08-20 CC Agenda Packet - Item #8 - Attachment A - SPEA MOU for 2018-2022Aqreement No. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EL SEGUNDO AND EL SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES ASSOCIATION TERM: October 1, 2018 to September 30, 2022 TABLE OF CONTENTS ARTICLE ISECTION NUMBER ........................................... Article 1 - Recognition Section 1- Classified Positions Represented by the Association............ Section 2 - City Recognition of Association .............................................. Section 3 -Term of this Memorandum of Understanding (M.O.U) .......... Article 2 - Non -Discrimination Statement of Non -Discrimination ... Article 3 - Health and Welfare Agreement No. ................................... PAGE .......................................... 6 .........................................6 ......................................... 6 Section 1 - Health Insurance......................................................................................... Section 2 - Alternative Medical Plans........................................................................... Section 3 - Dental Insurance......................................................................................... Section 4- Optical Insurance.................................................................................... Section 5 - Life Insurance......................................................................................... Section 6 - Insurance Cap........................................................................................ Section 7- Long Term Disability Insurance (LTD) ..................................................... Section 8 - Workers Compensation............................................................................... Section 9 - Flexible Spending Account......................................................................... Section 10 - Bereavement Leave.................................................................................. Section 11 - California State Disability Insurance (SDI) Program ................................ Article 4 - Retirement Section 1 - PERS Retirement Formulas Section 2 - Retiree Medical Insurance Contribution...................................................... Section 3 - Deferred Compensation Plan.......................................................................... Section4 - Leave Payoff............................................................................................ Section 5 - Cash Equivalency for Vacation, Sick Leave and Floating Holidays........... Section 6 - Public Agency Retirement System (PARS) ................................................. Article 5 - Sick Leave Section 1 - Accrued Sick Leave.......................................................................... Section 2 - Annual Medical Examination........................................................ 2 6 .7 .7 .7 .7 .7 .7 .7 .7 .7 .7 ....................10 1O Aqreement No. Section 3 - Sick Leave Usage for Family Care....................................................................................10 Section 4 - Catastrophic Illness Leave...................................................................................... 10 Article 6 - Employee Assistance Program (EAP).......................................................... 11 Article 7 - Vacation Section 1 - Accrual Schedule..............................................................................................................11 Section 2 - Accrued Vacation Leave after six months.........................................................................11 Section 3 - Maximum Accumulation of Vacation..................................................................................11 Section 4 - Cash in Lieu of Vacation Time..........................................................................................11 Section 5 -Leave Payment Upon Separation................................................................................. 11 Article 8 - Holidays Section 1- Listing of Holidays and Personal Leave/Floating Holiday ................................................. 11 Section 2 - Holidays and Sundays....................................................................................................... 12 Section 3 - Holidays and Fridays/Saturdays........................................................................................ 12 Section4 - Floating Holiday......................................................................................................................12 Section 5 - Leave Payment Upon Separation..................................................................................... 12 Article 9 - Professional Development Educational Reimbursement.................................................................................................................. 12 Article 10 - Computer Loan Program........................................................................... 13 Article 11- Salary Section 1 -Salary Adjustments............................................................................................13 Section 2 - Accelerated Salary Step Advancement...................................................................... 13 Section3 - Direct Deposit......................................................................................................... 13 Section 4 - Use of Personal Vehicle on Official City Business........................................................13 Section 5 - Educational Incentive Pay..................................................................................................14 Section6- Bilingual Pay.................................................................................................................14 Section7 - Longevity Pay................................................................................................................14 Section 8 -Certification Pay............................................................................................................14 Section 9 - Salary Table Step Advancement........................................................................................15 Article 12 - Uniforms List of Job Classifications having uniforms/footwear provided............................................................... 15 41 Agreement No. Article 13 - Overtime Section 1 - Fair Labor Standards Act - Overtime Compensation ...................... Section 2 - Definition of Hours Worked for Overtime - Computation purposes Section 3 - Overtime Authorization.................................................................... Section 4 - Maximum Accumulation of Compensatory Time ............................ Section 5 - Work Time Credit............................................................................... Article 14 - Grievance Procedure Section 1 - Definition of Terms............................................................................... Section2 - Time Limits..................................................................................................... Section 3 - Procedure................................................................................................ Section 4 - Matters Excluded from the Grievance Procedure ................................... Section 5 - Conferences............................................................................................ Section 6 - Employee appeals from Disciplinary Actions .......................................... Article 15 - Layoff 16 16 17 17 17 Section 1 - Grounds for Layoff.............................................................................................................19 Section 2 - Notice to Employees............................................................................................................19 Section3 - At -Will Employees............................................................................................................. 20 Section 4 - Procedures for Layoff........................................................................................................ 20 Section5 - Breaking Ties........................................................................................................................20 Section 6 - Reduction to a Vacant Position......................................................................................20 Section7 - Displacement Rights.................................................................................................................20 Section 8 - Salary Placement...............................................................................................................20 Section9 - Reemployment List............................................................................................................21 Section 10 - Rights upon Reemployment............................................................................................ 21 Article 16 - Miscellaneous Section1 - Credit Union..........................................................................................................................21 Section 2 - Temporary Assignment to Higher Classification.................................................................21 Section3 - Rest Periods.........................................................................................................................21 Section 4 - Request for Reclassification Review.................................................................................22 Section5 - Seniority: ....................................................................................................................... 23 Section6 - Standby Duty......................................................................................................................23 Section7 - Jury Duty............................................................................................................................23 Section 8 - Cell Phone Stipend.......................................................................................................24 Section 9 - Assignment of Work Schedule...........................................................................................24 al Aqreement No. Article 17 - Drug -Free Workplace Statement, Substance Abuse Policy, and Smoking and Break Policy.....................................................................................24 Article 18 - Personnel File Section 1 - Personnel File........................................................................................................ 25 Section 2 - Derogatory Material................................................................................................ 25 Section 3 - Positive Material..................................................................................................... 25 Article 19 -Association Deductions................................................................................25 Article 20 - Catastrophic Leave Bank...........................................................................27 SignaturePage............................................................................................................. 28 Appendix A - Bargaining Unit Classifications Appendix B - Smoking Policy Appendix C - Drug Free Workplace Statement and Substance Abuse Policy, Revised July 1,2008 Appendix D - Department of Transportation Drug Testing Guidelines Appendix E - Catastrophic Leave Bank Policy Appendix F - Occupational Injury and Illness Policy Appendix G - Salary Schedule W Agreement No. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EL SEGUNDO AND EL S E G U N D O SUPERVISORY AND PROFESSIONAL EMPLOYEES ASSOCIATION ARTICLE I- RECOGNITION SECTION 1. Pursuant to the provisions of the City of EI Segundo Resolution No. 3208, establishing procedures governing employer-employee organization relations, the City of EI Segundo (hereinafter referred to as the 'City' and 'Employer' (interchangeably) has recognized the EI Segundo Supervisory and Professional Employees' Association (herein after referred to as the 'Association'). as the exclusive representative of employees within the bargaining unit consisting of the classified positions listed in Appendix A - Bargaining Unit Classifications. SECTION 2. The City recognizes the Association as the representative of the employees in the classifications and assignments set forth in Section 1, above, for the purpose of meeting the joint obligations of the City and Association as set forth within the Meyers-Milias-Brown Act, Government Code 3500 et seq. SECTION 3. The term of this Memorandum of Understanding (MOU) shall commence on October 1, 2018 and end on September 30, 2022. ARTICLE II- NON-DISCRIMINATION Neither the City nor the Association shall discriminate against any employee because of race, color, age, creed, national origin, sex, handicap, medical condition, marital status, or Association activities in any matter. ARTICLE III- HEALTH AND WELFARE SECTION 1. Health fsurance - Employees participate as members of the PERS administered Public Employees' Medical and Hospital Care Program. Employees have a choice of HMO and Indemnity medical coverage plans. A. Citv Medical Contribution: For the term of this Agreement, the City will pay the Public Employees' Medical and Hospital Care Act ("PEMHCA") minimum contribution required under Government Code section 22892. The City will contribute as outlined below toward an employee's and his/her eligible dependent(s)' medical costs. This maximum contribution below includes the minimum PEMHCA contribution: i_ Effective on the first day of the second month following City Council adoption of the MOU, City contribution of $1,500 per member per month for medical -health insurance coverage; ii. Effective January 1, 2020, City contribution of $1,550 per member per month for medical - health insurance coverage; iii. Effective January 1, 2021, City contribution of $1,600 per member per month for medical - health insurance coverage; iv. Effective January 1, 2022, City contribution of $1,650 per member per month for medical - health insurance coverage 10 Aqreement No. Any employee premium amounts above the City contribution amount will be paid by the employee through pre-tax payroll deduction. Effective the first day of the second month following City Council Adoption of the MOU, the cash - out option is discontinued. SECTION 2. Alternative Medical Plans - During the term of this agreement, the City 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 a cost-effective, comprehensive medical package for employees and their families (i.e., provides comparable benefits to current plan, including portability). There will be no change in insurance plans without agreement of the parties. SECTION 3. Dental Insurance - The City provides fully paid dental insurance for the employee and all eligible dependents. SECTION 4. Optical Insurance - The City provides fully paid optical insurance for the employee and all eligible dependents. SECTION 5. Life Insurance - Employees are provided a fully paid $50,000 term life insurance policy. Additional coverage for self ($100,000 maximum) and for family members may be purchased at group rates by the individual employee. SECTION 6. Insurance Car) - The City's aggregate contribution for current dental, optical and life insurance for the term of this agreement shall be set and fixed at $184.25 per month. The City shall provide optical benefits for each employee and the employee's dependents. Within the monthly contribution cap currently established for dental, optical and life insurance coverage, the City's monthly contributions toward dental and life insurance coverage for an employee shall be made after the City's full monthly vision benefit contribution for an employee and his/her dependents has been made. SECTION 7. Lonq Term Disabilitv Insurance (LTD) - The City provides employees with a fully paid long term disability insurance policy which allows continuance of 66-2/3% of the first $9,750 of the employee's monthly salary. The policy applies to non -job related occurrences and benefits are payable following a 60 -day waiting period. The maximum benefit period varies on the basis of the employee's age at the time disability begins. SECTION 8. Workers Compensation - The City provides employees who receive job related injuries that are compensable under California Worker's Compensation Laws 75 % of their regular monthly salary for a period of up to one year. SECTION 9. Flexible Spendinq Account - Pursuant to applicable federal laws, the City allows for payment of employee paid insurance premiums, non -reimbursed medical expenses and/or dependent care expenses with pre-tax dollars. Participation in the program is voluntary. SECTION 10. Bereavement Leave - The present practice of granting three (3) working days of bereavement leave per incident shall be increased up to five (5) working days commensurate with the employees normally assigned work schedule per incident in those circumstances where travel to a funeral or other memorial proceeding is 500 or more miles one way as measured from the EI Segundo City Hall. Additionally, the definition of the immediate family whose funeral or memorial proceeding qualifies for use of bereavement leave, shall include the children, parents, siblings, grandparents of the employee, the employee's spouse or significant other. SECTION 11. California State Disabilitv Insurance (SDI) Proqram - The City has taken all the 7 Agreement No. necessary administrative steps to provide Association employees with State Disability I n s u r a n c e Program coverage through the California Employment Development Department. All actual costs associated with participation in the State Disability Program will be the responsibility of Association employees. ARTICLE N - RETIREMENT SECTION 1. (a) Effective November 8, 2000, employees participate in the Public Employees Retirement System (PERS) 2% at 55 Miscellaneous Plan. (b) Tier II - As soon as practicable, the City shall amend its contract with the California Public Employees' Retirement System (CaIPERS) to implement the 2%@60 retirement formula in accordance with Government Code Section 21353. This new formula shall apply to miscellaneous employees who are hired on or after the effective date of the CaIPERS contract amendment and are otherwise not a "new employee" and/or "new member" of CaIPERS under Government Code section 7522.04 of AB 340, also known as the California Pension Reform Act of 2013. Effective January 1, 2013, new miscellaneous employees and/or members, as defined by AB 340, will be subject to the 2%@62 retirement formula as well as all other statutory requirements established by AB340. (c) The Plan's retirement benefits are integrated with Social Security. (d) Effective January 1, 1992, the City's contract with PERS was amended to include the single highest year retirement calculation option. The present City contract with PERS also calls for incremental yearly increases in the City contribution towards retirees' medical coverage (currently $375 per month) so that by 1995 the contribution for current employees and retirees will be equal. (e) Effective the beginning of the first pay period in January 2018, and for the term of this agreement, miscellaneous employees defined as "classic" members by the California Pension Reform Act of 2013 (AB340) agree to pay the statutorily required employee contribution equal to seven percent (7%) (pre-tax) of compensation. i. Effective on the first day of the first full pay -period in September 2021, miscellaneous employees defined as "classic" members of the Association by the California Pension Reform Act of 2013 (AB 340) agree to pay an additional one percent (1 %) for a total required employee contribution of eight percent (8%) (pre-tax) of compensation. Effective January 1, 2013, "new employees" and/or "new members", as defined by AB 340, will be statutorily required to pay half of the normal cost of retirement benefits. SECTION 2. Retiree Medical Insurance Contribution - A member of the Association will be eligible to receive the City -provided retiree medical insurance contribution towards the member's and his/her eligible dependent(s)' medical costs, which is equal to that amount outlined in Article III, Section 1, sub -section A (i, ii, iii, iv), available to Association members currently employed by the City after a minimum of five (5) full years of service with the City of EI Segundo. The City's maximum per month contribution outlined in Article III, Section 1, sub -section A (i, ii, iii, iv) includes the PEMHCA minimum contribution required under Government Code section 22892. As required by Government Code section 22892(b), the City's contribution will be an equal amount for both employees and retirees. Any Retiree premium amounts above the City's contribution amount will be paid by the retiree through their CaIPERS annuity. 10 Aqreement No. SECTION 3. Deferred Compensation Plan - Employees are e l i g i b l e to participate i n the International City Management Association Retirement Corporation (ICMA-RC) and the Nationwide Retirement Solutions (NRS) Deferred Compensation Plans. Participation is voluntary and there is no City contribution to the plan. SECTION 4. Leave Pavoff - Employees retiring from the City service are paid the accumulated total of their unused vacation leave, personal floating holiday leave, compensatory leave, and sick leave, as provided for in this Agreement. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. SECTION 5. Government Code 20022(a)(1) provides that compensation for purposes of computing PERS retirement benefits includes remuneration paid in cash because of holidays, sick leave and vacation, as well as other remuneration furnished in payment for services. This MOU section memorializes that members of this unit have been contractually eligible to receive City paid cash equivalencies for vacation, sick leave and floating holidays accrued during the employee's final year of employment. Said members have also been eligible to receive a cash distribution equal to the monthly differential between $500.00 and the monthly amount designated by each member for funding health insurance and similar programs (herein referred to as an insurance differential.) Pursuantto City Council action in December 1991, the former management/confidential unit was modified, with members of this Supervisory Unit being removed from the then existing management/confidential unit. The classifications now contained within this Supervisory Unit being removed from the then existing management/confidential unit. The classifications now contained within this Supervisory Unit were included within the prior management/confidential unit and City contractual agreements prior to December 1, 1992to provide the management/confidential unit members with payment for vacation, sick leave and floating holidays accrued during the final year of employment, as well as the above insurance differential, fully insured to the benefit of those classifications now within the Supervisory Unit. On June 2, 1992, the City Council adopted the first Memorandum of Understanding between the City and the Supervisory Unit, with Article VII of said MOU providing in pertinent partthat all wages, hours and terms and conditions of employment in full force and effect prior to the adoption of the MOU, are to remain infull force and effect and are to be set forth within a later document entitled a Comprehensive Memorandum of Understanding. As members of the prior management/confidential unit, those classifications within the Supervisory Unit were therefore subject to earlier Council determination providing the described paid remuneration for vacation, sick leave and floating holidays accrued during the final year of employment, as well as the above insurance differential, and the June 2, 1992 Memorandum of Understanding contractually signifies that said benefits are to remain in full force and effect unless and until altered pursuant to the meet and confer process. This "Comprehensive Memorandum of Understanding" thereby codifies pre -December 1992 contractual provision of the stated compensation benefits to unit members. SECTION 6. Public Aaencv Retirement Svstem (PARS) - Effective October 1, 2008, the City will contract with the Public Agency Retirement System (PARS) to provide an additional retirement benefit for eligible Association employees. Eligible employees are those who are 1) 55 years of age or older, 2) have completed 15 years of continuous service with the City of EI Segundo and 3) service or disability retire from the City of EI Segundo. Eligible employees are entitled to receive the PARS .5 @ 55 retirement enhancement formula as a supplement to the City's 2% @ 55 Public Employees' Retirement System formula. This benefit will no longer be available to bargaining unit members who are both 1) hired and/or appointed to a position in the bargaining unit on or after October 1, 2012, and 2) not already a participant in the plan. The City and the PARS participants have agreed to cease future accruals under the current PARS Plan and to relinquish PARS participants of their obligations to make future mandatory contributions 9 Agreement No. to fund the current PARS Plan, as detailed in the executed side letter "Public Agency Retirement System Retirement Enhancement Plan ('PARS')" and in the City's November 3, 2015 Resolution adopting "The City of EI Segundo Public Agency Retirement System (PARS) retirement Enhancement Plan (as Amended and Restated Effective October 31, 2015) ("Plan Amendment"). ARTICLE V SICK LEAVE SECTION 1. Employees accrue sick leave at a rate of eight (8) hours per month. The maximum carryover of sick leave from November 30 to December 1 of each year is six hundred (600) hours. City provides a one hundred percent (100%) payoff each December 1Q�hof any accumulated sick leave hours above the maximum carryover. Employees who, on July 1, 1998, had an accumulated sick leave balance higher than six hundred (600) hours will have a maximum carryover equal to their accumulated sick leave balance on that date. No such maximum carryover can be greater than one thousand fifty-six (1056) hours. Should an employee's personal sick leave accrual limit drop below six hundred (600) hours, their future maximum carryover shall not be allowed to exceed six hundred (600) hours. Employees, with at least five (5) full years of service with the City, receive payment for one hundred percent (100%) of their accumulated sick leave upon service retirement, disability retirement, or death. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. SECTION 2. Annual Medical Examination - Employees are eligible for a fully paid comprehensive medical examination each year. The City currently utilizes 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. Up to two (2) days of sick leave may be used each year for physical examinations. SECTION 3. Sick Leave U s a a e for Familv C a re - Affected e m p I o ye e s a re eligible to utilize a maximum of forty-eight (48) hours of sick leave per calendar year in order that care may be provided to immediate family members suffering from illness or injury. The term "immediate family member" shall exclusively include the children, parents, siblings, the grandparents of the employee, the employee's spouse or significant other. "Immediate family member" shall also include mother-in-law and father-in-law. The City shall require each affected employee utilizing sick leave for said purpose to provide in writing a statement evidencing the facts justifying the use of sick leave in this regard. SECTION 4. Catastrophic Illness Leave - An employee may transfer sick leave, vacation or compensatory leave to a sick 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 or during additional designated times on forms provided by the City of EI Segundo. The City has the right to verify all catastrophic illnesses before donation from the sick leave bank. 10 Aqreement No. ARTICLE VI - EMPLOYEE ASSISTANCE PROGRAM (EAP) Provides confidential assistance, referrals, and counseling to the employee and members of the immediate family. The program is designed to provide professional assistance and support to help employees and their families resolve problems that affect their personal lives orjob performance. The City shall provide the basic level of service to employees at City cost. Basic level shall consist of three (3) sessions per member/per incident/per year. Employees may voluntarily enroll in the EAP/Outpatient tier at their own cost ($9.52/month). ARTICLE VII - VACATION SECTION 1. Employees covered by this MOU shall accumulate vacation leave as follows: From commencement of the 1st year of service through and including completion of the 5th year of service: 96 hours; From commencement of the 6th year of service through and including completion of the 10th year of service: 120 hours; From commencement of the 11 th year of service through and including completion of the 15th year of service: 144 hours; From commencement of the 16th year of service and for all years of service thereafter: 176 hours. Current/non-probationary employees Effective 2019, employees who have passed their probationary period as of August 20, 2019, vacation accrual rates shall be determined by combining total years of City service and prior PERS service with another agency. Probationary employees Employees —who are on probation, whether newly hired or promotional, shall have their vacation accrual rates determined by combining total years of City service and prior PERS service with another agency in the pay period following the employees passage of probation. SECTION 2. Employees may use their accrued vacation leave after six (6) months of employment. SECTION 3. Maximum accumulation of vacation leave allowed is the equivalent of two (2) years of service accrual. SECTION 4. Employees who have completed one year of service may receive cash payment in lieu of accrued vacation leave up to a maximum of 100% the annual accrual to which they are entitled by length of service. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. Employees may exercise this option twice per calendar year. SECTION 5. Employees shall receive payment for one hundred percent (100%) of their accumulated vacation leave upon service retirement, disability retirement, death, resignation, or termination. 11 Agreement No. Effective on the beginning of the first pay period in March 2018, vacation leave payouts shall be paid at the employee's base salary hourly rate. ARTICLE VIII -HOLIDAYS SECTION 1. Employees shall receive the following holidays: January ist The third Monday in January (Martin Luther King Jr. Day) The third Monday in February (President's Day) The last Monday in May (Memorial Day) July 4th The first Monday in September (Labor Day) November 11th (Veteran's Day) Thanksgiving Day The Friday after Thanksgiving Day December 24th December 25th December 31 st Holidays will be paid based on the employee's assigned daily work schedule. For example, employees assigned to a 4/10 schedule will have holidays paid in ten (10) hour increments. Employees assigned to a 9180 schedule will have holidays paid in nine (9) hour increments, unless the holiday falls on their assigned eight-hour scheduled work day in which case they will be paid eight hours of holiday pay. In addition to the holidays enumerated above, each employee shall receive one day (10 hours for 4/10 scheduled employees; 9 hours for 9/80 scheduled employees) per calendar year as a Personal Leave/Floating Holiday. The Personal Leave/Floating Holiday shall be credited to the employee every January. Newly hired bargaining unit members shall also receive this personal leave day which may be used six (6) months after the employee's initial appointment date. SECTION 2. In the event any of the above holidays fall on a Sunday, it will be observed on the following Monday and City Hall will be closed. SECTION 3. In the event any of the above holidays fall on a Friday or Saturday (or an employee's otherwise regularly scheduled day off), the employee will receive a floating holiday consisting of a number of hours based on the employee's assigned daily work schedule. For example, employees assigned to a 4/10 schedule will receive a floating holiday of ten (10) hours. Employees assigned to a 9/80 schedule will receive a floating holiday of nine (9) hours. SECTION 4. Floating Holidays will be credited to the employee's leave bank the pay period in which the holiday falls. Floating Holiday hours may not be carried over to the following calendar year. However, Floating Holiday hours credited in either November or December may be carried over to the next calendar year, but must be used by October 31st of the following year. SECTION 5. Employees shall receive payment for one hundred percent (100%) of their accumulated Personal Leave/Floating Holiday leave upon service retirement, disability retirement, death, resignation, or termination. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. ARTICLE IX -PROFESSIONAL DEVELOPMENT SECTION 1. College course reimbursement 12 Aqreement No. Employees are reimbursed 100% of the cost of tuition and books to a maximum of $2,000 per calendar year for satisfactory completion of work related college courses. Requires prior written approval of department head and City Manager and requires a C average or better grade. Employees who participate in the program must sign the following agreement: Educational Reimbursement - "I certify that I successfully completed the course(s), receiving at least a grade of'C' or better." (Attach 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 employment, 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. Below is the reimbursement schedule for the full months worked between course completion and resignation dates and the percentage of the total reimbursement to be refunded to the City. 1 100% 7 50% 2 100% 8 40% 3 90% 9 30% 4 80% 10 20% 5 70% 11 10% 6 60% 12 0% Probationary employees are not eligible to participate in this program. SECTION 2. Professional memberships, conferences, meetings, and workshops With the approval of the department head and/or City Manager, the City also pays the cost of an employee's professional membership fees and conference, meeting and workshop attendance. ARTICLE X - COMPUTER LOAN PROGRAM Effective upon adoption of this MOU by the City Council, the Computer Loan Program will be eliminated, and no new computer loans will be granted by the City. However, for current employees with outstanding Computer Loans, the City and employee shall continue to recognize existing loan and repayment obligations under the same terms and conditions. The following language is retained to reflect the prior understanding of the parties and for historical context: "Employees are eligible to receive an interest-free loan not to exceed $4,000 for the purpose of purchasing personal computer hardware, software, ergonomically correct furniture and related equipment. Loans shall be repaid through payroll deductions over a three (3) year period. The City shall retain title, as security, to any equipment purchased through the program until the loan is fully paid off. After the fact financing shall be permitted upon the loan applicant receiving prior written approval from the Director of Finance. Outstanding loan balances must be paid off at the time an employee separates from the City: The Human Resources Department shall update Program guidelines periodically as necessitated by changes in technology or organizational requirements." ARTICLE XI -SALARY SECTION 1. Salary Adiustments - The City shall provide the following salary increases to employees, per Appendix G: • Effective upon the first day of the first payroll period after City Council ratification of this MOU, 13 Agreement No. increase base salary by 4% • Effective Pay Period that includes October 1, 2019: increase base salary by Two Percent (2%) • Effective Pay Period that includes October 1, 2020: increase base salary by Two Percent (2%) • Effective Pay Period that includes October 1, 2021: increase base salary by Two Percent (2%) SECTION 2. Accelerated Salary Step Advancement - Employees who have yet to reach the top step of their salary range are eligible to receive an accelerated salary step advancement of up to 5% in a 12 month period upon recommendation and approval bythe department head and City Manager. An accelerated salary advancement is intended to recognize an employee's job performance which consistently and uniquely exceeds normal expectations. SECTION 3. Direct Deposit - The City shall electronically deposit employees' paychecks directly into a savings or checking account designated by the employee. Employees shall be responsible for providing the Finance Department with the correct transit routing number of their banking institution and the correct number of the account into which their paycheck will be deposited. Exceptions to this policy shall be granted upon an employee's written request to the Finance Director. SECTION 4. Use of Personal Vehicle on Official City Business - Employees authorized to use a personal vehicle while on official City business will receive mileage reimbursement at the rate approved by the Internal Revenue Service. Use of a personal vehicle will not be authorized if a City motor pool vehicle is available to the employee. Under appropriate circumstances, Department Heads may approve exceptions to the requirement to utilize available motor pool vehicles. SECTION 5. Educational Incentive Pav - Eligible employees shall be entitled to receive educational incentive pay as shown below. Eligibility for educational incentive pay is limited to those employees who (a) are working in ajob classification that does not require a bachelor's degree or higher degree to qualify for the classification, and (b) were awarded such degree from an accredited college or university in one of the majors of public administration, business administration, engineering, or other job-related major, which had been approved by the department head, in writing. Educational Incentive Pay Job Classifications Occupying Salary Grades 30S - 39S: $318.04/month Job Classifications Occupying Salary Grades 40S - 49S: $407.11/month Job Classifications Occupying Salary Grades 50S - 53S: $449.38/month If during the term of this Memorandum of Understanding a job classification is assigned a salary grade higher than 53S, the flat dollar monthly amount of educational incentive pay for the employee shall be equivalent to five percent (5%) of the base salary E Step of the salary grade. SECTION 6. Bilingual Pav - An employee who demonstrates conversational and written fluency in a language approved by their Department Head and who is assigned duties in which such language skills are regularly used, shall be entitled to bilingual pay as shown below. The City will be responsible for utilizing a standardized, industry accepted test (such as Berlitz, Inc.) to determine an employee's qualifications for bilingual pay. Bilingual Pay Job Classifications Occupying Salary Grades 30S - 39S: Job Classifications Occupying Job Classifications Occupying Salary Grades 40S - 498: Salary Grades 50S- 53S: 14 $159.02/month $203.56/month $224.69/month 15 Aqreement No. Agreement No. If during the term of this Memorandum of Understanding a job classification is assigned a salary grade higher than 53S, the flat dollar monthly amount of bilingual pay for the employee shall be equivalent to two and one-half percent (2.5%) of the base salary E Step of the salary grade. SECTION 7. Lonqevitv Pav - An employee who has completed twenty (20) years of continuous service with the City of EI Segundo shall be entitled to longevity pay asshown below Longevity Pay Job Classifications Occupying Salary Grades 30S - 39S: $318 .04/month Job Classifications Occupying Salary Grades 40S - 49S: $407.11/month Job Classifications Occupying Salary Grades 50S - 53S: $449.38/month If during the term of this Memorandum of Understanding a job classification is assigned a salary grade higher than 53S, the flat dollar monthly amount of longevity pay for the employee shall be equivalent to five percent (5%) of the base salary E Step of the salary grade. SECTION 8. Certification Pav - Employees occupying the job classifications of Wastewater Supervisor and Water Supervisor shall be entitled to certification pay as shown below for obtaining and maintaining a certification above the level required on the City Council approved class specification. Eligible certifications will be determined by the employee's Department Head. Certification Pay Job Classifications Occupying Salary Grades 30S - 39S: Job Classifications Occupying Salary Grades 40S - 49S: Job Classifications Occupying Salary Grades 50S - 53S: 16 $318.04/month $407.11 /month $449.38/month Agreement No. If during the term of this Memorandum of Understanding a job classification is assigned a salary grade higher than 53S, the flat dollar monthly amount of certification pay for the employee shall be equivalent to five percent (5%) of the base salary E Step of the salary grade SECTION 9. Salary Table Step Advancement The advancement of an employee from Step A to Step B shall be on the beginning of the pay period immediately following satisfactory completion of his or her first six months' service. Advancement from Step B to Step C, from Step C to Step D, and from Step D to Step E, shall each occur on the beginning of the pay period immediately after completion of one year's satisfactory service in each of such classification. A supervisor may recommend at any time to the department head that an employee receive an accelerated advancement to the next salary Step B, C, D, or E, based on exemplary job performance. If the department head concurs, he/she shall submit a written report on the prescribed form to the Director of Human Resources citing specific examples of work performed by the employee that consistently exceeds expectations and warrants approval of the next salary step prior to the employee's anniversary date. The Director of Human Resources shall submit the request along with a recommendation for action by the City Manager. An employee may receive more than one salary step advancement within a twelve (12) month period of time, if warranted. The accelerated salary advancement(s) shall not change the affected employee's anniversary date. ARTICLE XII - UNIFORMS Employees occupying the following job classifications shall have uniforms and footwear provided and replaced by the City: Assistant Fire Marshal Crime Prevention Analyst 1/11 Emergency Management Coordinator Environmental Safety Manager Equipment Maintenance Supervisor Facilities Maintenance Supervisor Fire Marshal Park Maintenance Supervisor Police Records Supervisor Principal Environmental Specialist Senior Building Inspector Street Maintenance Supervisor Wastewater Supervisor Water Supervisor Department Heads will determine appropriate uniform and footwear for employees occupying Departmental job classifications. Style and cost will be determined solely by the City, with the Association provided the opportunity for information input. The determination of the City shall not be subject to administrative or judicial appeal. Uniform cleaning services shall be provided by the City. In addition, an Association member occupying the job classifications of Assistant Fire Marshal, Environmental Safety Manager, Principal Environmental Specialist, Fire Marshal, Crime Prevention Analyst 1/11, Emergency Management Coordinator, Police Records Supervisor and Senior Building Inspector shall receive a uniform cleaning allowance of $400 per year. 17 ARTICLE XIII -OVERTIME Agreement No. SECTION 1. Fair labor Standards Act —Overtime Compensation {a) Pursuant to the Fair Labor Standards Act, employees occupying the classifications and assignments described in Appendix A, are entitled to overtime pay at the rate of one and one-half (1.5) times their regular rate of pay for all hours worked in excess of forty (40) hours in a seven (7) day workweek, as defined in Article XVI, Section 9. (b) Effective January 6, 2018, employees of this bargaining unit shall work a "9/80" schedule, which consists of eighty (80) scheduled hours in a 14 -day (two-week) cycle where, (1) in one week the employee works four 9 -hour workdays and one 8 -hour workday , and (2) the subsequent week consists of four 9 -hour workdays. For FLSA purposes the "work week" for FLSA overtime purposes shall be established as four hours into the shift of the eight-hour day and in such a manner that no consecutive seven-day (168 hour) period shall exceed 40 hours. The work week for employees working other than a Monday through Friday schedule shall be defined in such a manner as to comply with FLSA work period requirements. SECTION 2. Definition of hoursworked for overtime -Computation purposes The City, for purposes of calculating overtime pay, will include holiday leave as time worked. The following shall not be considered as time worked for purposes of computing entitlement to overtime compensation: Meal breaks; 2. Utilization of paid or non -paid leaves of absence (including but not limited to vacation leave, sick leave, leave without pay, compensatory time off); All travel time to and from the work site when responding to a regularly scheduled shift; 4. All time in off-duty voluntary training assignments (homework, study time, meal time, sleep, etc.). All off-duty travel; 6. All time for personal preparation and clean up; Any other time not deemed hours worked by the FLSA, except holiday leave. SECTION 3. Overtime Authorization No employee shall be eligible for receipt of overtime compensation unless the working of overtime hours has been specifically authorized in advance by the employee's supervisor. SECTION 4. Affected employees shall be entitled to accumulate a maximum of eighty (80) hours of compensatory time off. Utilization of compensatory time off shall be subject to approval of the affected employee's department head. Employees may opt to receive cash payment for accrued compensatory leave earned yearly. Employees shall receive payment for one hundred percent (100%) of their accumulated compensatory leave upon service retirement, disability retirement, death, resignation, or termination. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. SECTION 5. Affected employees ordered by a supervisor to return to a designated worksite other than during the employee's regularly scheduled hours of work and at a time not contiguous with said regularly scheduled hours of work, shall be provided a minimum of four (4) hours work time credit. Said minimum of four (4) hours shall then be included within the work period described in Section 1 for computation of overtime purposes. ARTICLE XIV - GRIEVANCE Agreement No. PROCEDURE SECTION I. DEFINITION OF TERMS A. Grievance -A grievance is a violation, misinterpretation or misapplication of a specific written departmental 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 departmental 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 adversely affected by an act or omission of the agency. C. Dater - A day is a calendar day. D. Immediate Supervisor - The first level supervisor of the grievant. SECTION 2. TIME LIMITS A Compliance and Flexibilitv - With the written consent of both parties, the time limitation for any step may be extended or shortened. 8. Calculation of Time Limits -Time limitsfor appeal provided ineach level shall begin the day following receipt of a written decision or appeal by the parties. C. Failure to Meet Timeliness - Failure at any level of this procedure to communicate the decision on a grievance by the Citywithin 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 3. PROCEDURE Grievances will be processed following the procedures setforth below. A. Level I - Within ten days of the date the employee reasonably knew or should have known of the incident giving riseto the grievance, the employee should make an effort to resolve the grievance informally with the employee's immediate supervisor. The supervisor shall hold discussions and attempt to resolve the grievance within five (5) days. B. Level II - In the event such efforts do not produce a mutually satisfactory resolution, the grievant shall have ten (10) calendar days to file a formal written grievance after the employee's immediate supervisor is unable to resolve the grievance through the discussion process. Under no circumstances may a grievance be filed more than twenty-five (25) days from the date the employee knew or should have known of the incident giving rise to the grievance. 1. Procedure for Filing a Grievance - Infiling a 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 misapj4ication. C. The date or dates on which the violation, misinterpretation or misapplication occurred. d. What documents, witnesses or other evidence supports the grievant's position. The remedy requested. Agreement No. C. Level III - If the grievance is not resolved by the immediate supervisor the grievant may present the grievance inwriting to the department head within five (5) days. The department head will respond inwriting within ten (10) days. D. Level IV — See Article XXI — binding arbitration. SECTION 4. MATTERS EXCLUDED FROM THE GRIEVANCE PROCEDURE A. The grievance procedure is not intended to be used for the purpose of resolving complaints, requests or changes in wages, hours or working conditions. B. The procedure is not intended to be used to challenge the content of employee evaluations or performance reviews. 18 C. The procedure is not intended to 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 procedure is not intended to be used in cases of reduction in pay, demotion, suspensions or a termination, but is subject to the formal appeal process as outlined in Ordinance 586. SECTION 5. CONFERENCES Grievants and City representatives, upon request, shall have the rightto a conference at any level of the grievance procedure. SECTION 6. EMPLOYEE APPEALS FROM DISCIPLINARY ACTIONS A. Any permanent employee in the Classified Service who has been suspended, for a period of six (6) days or more, demoted, dismissed, or reduced in pay shall have a period of ten (10) days following written notification in which to file an appeal or answer the charges. B. The employee shall forthwith be given in said written notification a statement of the extent and nature of any disciplinary action and a full explanation of the reasons for the action including specific information as to time and place of incidents. C. Each disciplinary action shall automatically be given administrative review by the City Manager, immediately after the written notification, and the City Manager may countermand the disciplinary action or modify the discipline imposed prior to any hearing as hereinafter provided. D. Appeals and requests for hearings shall be filed with the City Manager, and then immediately referred to the Los Angeles County Civil Service Commission or City Council, as the case may be. E. The Commission shall have the right to refuse to hold a hearing in any case in which the appellant fails to present sufficient grounds to warrant a hearing. Procedures for all hearings to be conducted by the Count shall be in accordance with the Rules of the Los Angeles County Civil Service Commission. G. Alternatively, employees may appeal discipline to binding arbitration pursuant to Article XXI. Agreement No. ARTICLE XV - LAYOFF SECTION 1. Grounds for Lavoff - Whenever, in the judgment of the City Council, it becomes necessary to reduce the workforce because of a lack of funds, lack of work or reorganization, 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 designee. Such action shall not entitle the laid off, reduced or displaced employee to a right of appeal. The City Manager shall recommend to the City Council each classification to be affected by any such change. SECTION 2. Notice to Emplovees -An employee filling a full-time position shall be given fourteen (14) Calendar day's prior notice of lay off. 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 3. At -Will Emplovees - 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 as at -will. The promotional probationary employee shall revert to his/her previously held classification and position without loss of seniority. SECTION 4. Procedures f r L a v o f f - A permanent employee in a classification effected 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. SECTION 5. Breaking Ties - Provided that seniority, hiring date is equal 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 in a classification, provided the last rating had been filed at least thirty (30) days prior to the date of the layoff notice. Retention points are as follows: 1. "Unsatisfactory" rating 2. "Improvement needed" rating 3. "Satisfactory" rating 4. "Exceeds expectations" rating 5. "Outstanding" rating 21 0 retention points. 6 retention points. 12 retention points. 18 retention points. 24 retention points. Agreement No. Agreement No. SECTION 6. 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 eligible 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, 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 to the salary step of his/her previously held position, and the employee will be assigned a new salary anniversary date on the effective date of the appointment. SECTION 7. Displacement Riahts - An employee designated for layoff as a result of abolition of a position or classification may displace (bump) an employee in a lower classification, if the employee previously held permanent status insuch classification. An employee who is bumped shall be laid off in the same manner as an employee whose position or classification is abolished. SECTION 8. Salary Placement -An employee who is assigned to a lower classification as a result of a displacement (bump) shall receive the compensation reflected by the step of the salary range of the new classification closest to the compensation of the employee in the previous classification, and the employee will also be assigned a new salary anniversary date on the effective date of the appointment. 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, 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 a reemployment list or lists, as set forth in subsection 9. SECTION 9. Reemplovment List - The names of permanent employees who have been laid off under this section (including employees who 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 there from for a period for three years from the date their names were placed on the list. As a vacancy within a classification or a lower related classification becomes available, the name appearing at the top for 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 re-employment offer shall be permanently removed from the re-employment list without right of appeal. Laid -off employees do not earn seniority credit or benefits while on the re-employment list. SECTION 10. Riahts upon Reemplovment - If a person is reemployed by the City within three years, the employee's accumulated sick leave allowance, seniority and vacation accrual shall be reinstated. Employees should be placed on the same salary step previously held upon reemployment. ARTICLE XVI - MISCELLANEOUS SECTION 1. Credit Union - Employees are eligible to join the South Bay Credit Union. SECTION 2. Temporary Assianment to Hiaher Classification - 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. SECTION 3. Rest Periods - All bargaining unit employees shall be provided a fifteen (15) minute rest -break near the mid -point of every four hours of scheduled work. In order to ensure that such 21 Agreement No. affected employees are prepared to reconvene performance of their duties precisely at the conclusion of the fifteen (15) minute rest -break, such employees are encouraged to take their break within the building where they are regularly assigned or on the grounds immediately adjacent to the work assignment. As it concerns lunch breaks, all affected employees are scheduled for either a thirty (30) or sixty (60) minute lunch break depending upon the work assignment. Said scheduling shall be in accord with pre-existing City practices and procedures. Failure by an employee to utilize a rest or lunch break shall not result in any accumulation or other "banking" of said unused time; nor shall failure to utilize said rest or lunch break time result in conclusion of the employees regularly scheduled work shift at a time earlier than scheduled nor shall any unused break time be utilized to extend a lunch break. However, in any instance where management mandates that a rest or lunch break not be taken because of the need to provide services to the City, then said additional work time shall be compensated in accord with this MOU, City Rules and Regulations and applicable statutory requirements. Additionally, in said circumstances, management does have the discretion to allow for early termination of an employee's regularly scheduled work hours in amounts of time equivalent to the missed breaks. Agreement No. SECTION 4. Request for Reclassification Review A. Basis for reauest - A bargaining unit employee or Association may make a request for reclassification once every two years, if an employee's job duties and responsibilities have become significantly different over the two-year period. B. Processina of request - The request for reclassification review must be submitted by the employee or the Association to the employee's immediate supervisor. The employee's supervisor shall submit a written recommendation to the employee's Department Head concerning the merits of the reclassification review request. If the Department Head determines that the employee's job duties and responsibilities have significantly changed, the Director of Human Resources will initiate the reclassification review process. Human Resources Department staff will have the responsibility to conduct the reclassification review process. However, if the Association and the City mutually agree, a consultant may be utilized at any step of the reclassification review process. The cost of the agreed upon Consultant will be paid by the City. C. Components of reclassification review- 1. eview-1. The employee requesting the reclassification review will provide information summarizing the scope and complexity of the duties and responsibilities of the position. 2. The employee requesting the reclassification review will be interviewed and observed at work to assess the validity of the information provided by the employee and to develop a full understanding of the job duties and responsibilities. A salary survey will be performed comparing the employee's position with similar positions in the Cities of Culver City, Gardena, Hawthorne, Hermosa Beach, Inglewood, Los Angeles, Manhattan Beach, Redondo Beach, Santa Monica, Torrance, and the County of Los Angeles. For purposes of the salary survey, the mid -point of the City's current pay schedule will be compared to the midpoints of the surveyed public entities for positions with similar education and/or experience requirements. Variances of+/- 5% will be considered comparable to the prevailing rate. D. Action by the Director of Human Resources - The completed reclassification survey and a draft job description shall be reviewed by the employee's supervisor and the Director of Human Resources. The Director shall then meet and confer with the Association on the results of the reclassification review. The Director shall then make his or her recommendation to the City Manager. The Director shall recommend to the City Manager the approval of any reclassification request that reflects a substantial change in the duties and responsibilities of the position. E. Action by the Citv Council - All reclassifications must be approved by the City Council. F. Effective date of reclassification - Any approved reclassification shall become effective the pay period following approval. G. Challenae to decision on reclassification request - The Association may challenge the denial of the reclassification request by the Director of Human Resources, the City Manager or the City Council. Any challenge to the denial of the reclassification request will be governed by this section and not by Article XVI, Grievance Procedure. Ifa challenge is made, a new classification review will be completed by a neutral entity selected by mutual agreement of the Association and the City. The parties 23 Agreement No. agree to accept the conclusions reached by the neutral entity. The cost of the consultant's services will be shared equally by the Association and the City. SECTION 5. Senioritv - For the purpose of this Memorandum of Understanding, seniority shall be defined as a bargaining unit member's total, continuous employment in a position in the City's classified service. Total, continuous employment is that which is uninterrupted by separation and includes 1) actual time worked, 2) authorized leave of absence, both paid and unpaid, 3) family leave, 4) military leave and 5) industrial injury or illness leave. For purposes of this section, a leave of absence without pay is limited to a maximum of 90 continuous days. SECTION 6. Standbv Dutv -.Standby Duty is the time that employees, who have been released from duty, are specifically required by their supervisor to be available for return to duty when required by the City. During Standby Duty, employees are not required to remain at their City work station or any other specified location. Standby Duty employees are free to engage in personal business or activities. However, standby duty requires that employees: 1. Be ready to respond immediately. 2. Be reachable by paging device or telephone. The City may, in its discretion, provide a paging device (e.g., a beeper) to an assigned Standby Duty employee. 3. Be able to report to work within one (1) hour of notification. 4. Refrain from activities which might impairtheir ability to perform assigned duties. This includes, but is not limited to, abstaining from the consumption of any alcoholic beverage and the use of any illegal drug or incapacitating medication. 5. Respond to any call back during the assigned standby period. As with any City equipment, any paging device assigned to an employee is the responsibility of the standby employee during the standby assignment. The employee is liable for loss or damage to the paging device which is caused by the employee's negligence or intentional acts. Failure of an employee to comply with the provisions of standby duty may subject the employee to discipline, up to and including termination of employment with the City. For each period of standby duty, employees shall be provided the choice of two (2) hours of compensatory time off or two (2) hours of paid time. A period of standby duty shall be defined as one (1) day, commencing at 0001 and ending at 2400. An employee who uses sick leave or vacation leave during a standby period, occurring on or after September 9, 2000, shall not be provided any form of compensation for the standby period, unless the employee's department head approves, in writing, the provision of the normal standby period compensation. SECTION 7. Jury Dutv - Employees shall be entitled to a leave of absence forjury duty subject to compliance with all of the following conditions: A The employee must providewritten notice ofthe expected jury duty to his or hersupervisor as soon as possible, but in no case later than 14calendar days before the beginning of the jury duty. 23 Agreement No. B. During the first two weeks of jury duty, an employee shall be entitled to receive his or her regular compensation. C. For any portion of jury duty that extends beyond the first two weeks, such extended jury duty period shall be without regular pay. D. Any compensation for the first two weeks of jury duty, except travel reimbursement pay, must be deposited with the Director of Human Resources. E. While on jury duty, the employee must report to work during any portion of a day that the employee is relieved of jury duty for three or more consecutive hours. Employees relieved of jury duty for three or more consecutive hours may use accrued leave to take the rest of the day off, provided they have secured prior supervisory approval. F. The employee must provide documentation of his or herdaily attendance on jury duty. G. However, notwithstanding Section C above, employees may access accrued vacation leave, sick leave and compensatory time, if jury duty extends beyond two weeks. SECTION 8. Cell Phone Stipend - Employees in classifications which are currently issued a cell phone may elect not to be issued cell phones and instead receive an eighty dollar ($80) monthly stipend to offset the cost of utilizing their personal devices for work related purposes. Non-exempt employees shall not use their personal cell phones to perform anywork on behalf of the City outside of normal working hours without prior supervisory approval. Employees who electthis option shall make their personal cell phones and cell phone records available for inspection bythe City on the same terms and conditions as employees who are issued City cell phones. SECTION 9. Assianment of Work Schedule Effective the first day of the first pay period in January 2018, employees of this bargaining unit shall operate on a 9,80 work schedule. Employees shall typically be assigned a Monday through Friday 9/80 schedule. The City and SPEA membership agree that the membership may be split into "A", "B", and "C" shift by their respective Department Heads, such that "A" and "B" shift work opposite Fridays and have opposite Fridays off, whereas "C" shift works Monday through Friday 5/40 schedule. Due to operational needs, the City may assign employees to operate a different 9/80 schedule if the change is intended to be permanent and the exercise of such right is not arbitrary, capricious, retaliatory, or discriminatory. The City shall provide SPEA and the employee with 30 days' notice prior to the implementation of any change in the designated workweek. Such notification shall provide a description of the operational need for the proposed change. The City shall not change an employee to any other schedule (5/40 or 4/10) without mutual written agreement by (1) the employee, (2) his or her Department Head, and (3) the SPEA Association Board. SECTION 10. New Hire Notification The City shall notify the Association of all new hires in positions in this bargaining unit (see Appendix A) within 10 working days. ARTICLE XVII - DRUG-FREE WORKPLACE STATEMENT AND SUBSTANCE ABUSE POLICY, SMOKING POLICY, AND BREAK POLICY The parties have met and conferred in good faith regarding the adoption of a revised drug-free workplace statement and substance abuse policy dated July 1, 2008, as well as a non-smoking policy and break policy and the same shall be implemented concurrent with adoption of this MOU. Agreement No. ARTICLE XVIII - PERSONNEL FILE SECTION 1. The official personnel file of each employee shall be maintained in the Human Resources Department. A unit member and/or Association representative authorized bythe member, in writing, may review or obtain copies of material from the employee's file with the exception of material that includes ratings, reports or records which are obtained prior to the employment of the employee involved. SECTION 2. Employees shall be provided any copies of derogatory material placed in their official file. Employees will be requested to acknowledge they received any derogatory material prior to it being placed in their personnel file. SECTION 3. All customer or citizen letters of a positive nature and/or any City commendations, letters of achievements and recognition will be placed inthe employee's personnel file. Article XIX —ASSOCIATION DEDUCTIONS Upon notification by the Association, the City shall deduct Association dues from the pay of employees represented by the Association as required by law. Amounts to be deducted shall be certified to the City by the appropriate Association official. Any collected authorized payroll deductions shall be transmitted to the appropriate designated party. The Association agrees to defend, indemnify and hold harmless the City from any claim, suit or liability of any nature arising from the operation of this provision, including, but not limited to: (a) a challenge to the validity of this Section; or (b) any action of the Association taken pursuant to, or in violation of, this Section. The City will give the Association prompt written notice of any claim, suit or liability which it contends is subject to this provision. It is also agreed that neither any employee nor the Association shall have any claim for error against the City for any deductions made or not made, as the case may be. ARTICLE XX - CATASTROPHIC LEAVE BANK Pursuant to the meet -and -confer process for 1997-98, it was agreed upon that effective July 1, 1997, or as soon thereafter as is possible, the City shall establish a Catastrophic Leave Bank for represented employees as follows: I. 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. 2. 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. 3. PROCEDURES A. There is established ajoint-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. 25 B. Employees may transfer sick leave, vacation or compe s orympeave ?6 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 EI 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. D. Employees must hold a minimum of one hundred (100) hours of accumulated illness/injury leave 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 XXI — BINDING ARBITRATION A. Civil Claims: Both the City and individual employees covered by this Memorandum of Understanding agree that the claims described in this Article shall be submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act, in conformity with the procedures of the California Arbitration Act ("CAA") (Cal. Code Civ. Proc. Sec 1280 et. seq, including section 1283.05 and all of the CAA's other mandatory and permissive rights to discovery). Nothing in this Memorandum of Understanding shall prevent either party from obtaining provisional remedies to the extent permitted by Code of Civil Procedure Section 1281.8 either before the commencement of or during the arbitration process. All rules of pleading, (including the right of demurrer), all rules and judgment under Code of Civil Procedure Section 631.8 shall apply and be observed. Resolution of the dispute shall be based solely upon the law governing the claims and defenses pleaded. 1. The civil claims which are subject to final and binding arbitration shall include, but not be limited to, any and all employment-related claims or controversies, such breach of employment agreement, breach of the covenant of good faith and fair dealing, negligent supervision or hiring, wrongful discharge in violation of public policy, unpaid wages of overtime under the state and federal wage payment laws, breach of privacy claims, intentional or negligent infliction of emotional distress claims, fraud, defamation, and divulgence of trade secrets. This also specifically includes claims that could be asserted under all state and federal anti- discrimination laws, including but not limited to the California Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Family and Medical Leave Act, and claims for discrimination and harassment in employment on the basis of race, age, sex, religion, national origin, alienage, religion, marital status, sexual orientation, disability, political activity, or any other statutorily -protected basis. It shall also include any and all claims an employee may have under the Fair Labor Standards Act, the California Labor Agreement No. Code, and the Industrial Welfare Commission Wage Orders, as well as any other state and federal statutes. This Article XXI is further intended to apply to any claim Employee(s) may have against the City and/or any of its directors, employees, or agents, and to any and all past and future employment relationships Employee may have with the City regardless of job position or title. City shall also arbitrate all claims it has against the employee under the same rules and regulations set forth herein. 2. Notwithstanding the provisions of this Article, employees covered by this Memorandum of Understanding may elect to file a claim for workers' compensation and unemployment insurance benefits with the appropriate state agencies, and administrative charges with the Equal Employment Opportunity Commission, California Department of Fair Employment and Housing, California Department of Labor Standards Enforcement, U.S. Department of Labor and any similar state or federal agency. Unless otherwise required by applicable law, all other employment-related claims shall be resolved by final and binding arbitration and not by a jury in a court of law. 3. To the fullest extent permitted by law, employees covered by this Memorandum of Understanding agree that they shall not join or consolidate claims submitted for arbitration pursuant to this Article with those of any other persons, and that no form of class, collective, or representative action shall be maintained without the mutual consent of the parties. Any dispute over the validity, effect, or enforceability of the provisions of this paragraph, including whether the arbitration may proceed as class, collective, or representative action, shall be for a court of law and not an arbitrator to decide. The City shall bear the costs of any arbitration conducted pursuant to this Article, including the compensation of the Arbitrator, all administrative expenses, and CSR transcripts. Except as may otherwise be required by law, the parties shall be responsible for their own attorneys' fees and costs incurred in presenting their case to the Arbitrator. The Arbitrator shall render a written award within 30 days after the matter is submitted for determination, and the award of the arbitrator shall be final and binding on the City, and the employee. 5. The arbitration shall be held before a single arbitrator, who shall be an attorney at law and an experienced employment law arbitrator. The arbitrator shall be mutually selected by the parties. The Arbitrator shall have the power to award all legal relief available in a court of law, including any and all damages that may be available for any of the claims asserted. In addition, each of the parties shall retain all defenses that they would have in a judicial proceeding, including defenses based on the expiration of the statute of limitations and that the damages being sought are not authorized or are excessive. B. Appeal of Discipline The Parties understand that employees covered by this Memorandum of Understanding are entitled to disciplinary appeal procedures under the City's Personnel Merit System Administrative Code. Under Administrative Code Section 1-6-8, employees have the right 27 to have the Los Angeles County Civil Service Commission hear app-ealsmi-rom dismissal, demotion, and suspensions for a period of six (6) days or longer. The Parties agree that an employee covered by this Memorandum of Understanding may opt to have these disciplinary actions be submitted to binding and final arbitration. 1. The arbitration shall be held before a single arbitrator, who shall be an experienced labor and employment law arbitrator. The parties shall select an arbitrator from a list of seven arbitrators provided by the State Mediation and Conciliation Service. If the parties are unable to reach an agreement in the selection of a hearing officer, each shall strike names from the list until a final name is selected as the Arbitrator. 2. The City shall pay the costs of the arbitrator and court reporter fees and transcript, if a court reporter is requested by the parties. The parties shall be responsible for their own attorneys' fees and costs incurred in presenting their case to the Arbitrator. 3. Any dispute over the validity, effect, or enforceability of the provisions of this Article, shall be for a court of law and not an arbitrator to decide. 4. Under this Section B, the Arbitrator's authority will be limited to determining: Whether the City has satisfied the seven tests of just cause; and, if not, what is the appropriate remedy. The Arbitrator shall render a written award within 30 days after the matter is submitted for determination, and the award of the arbitrator shall be final and binding on the City, the Association and the employee. The Arbitrator may not increase the level of discipline. 5. At least ten business days before the scheduled arbitration, the parties shall exchange the following information: (i) a list of all witnesses each party intends to call during its case -in -chief; and (ii) copies of all documents each party intends to introduce during its case -in -chief. C. Contract Interpretation Disputes The Parties agree that any grievance filed under the Grievance Procedure, Article XIV, of this Memorandum of Understanding shall be subject to final and binding arbitration. The Association must file a written request for final and binding arbitration within ten (10) days of receipt of the City's response at Level III. The arbitration shall be held before a single arbitrator, who shall be an experienced labor and employment law arbitrator. The parties shall select an arbitrator from a list of seven arbitrators provided by the State Mediation and Conciliation Service. If the parties are unable to reach an agreement in the selection of a hearing officer, each shall strike names from the list until a final name is selected as the Arbitrator. 2. The City shall pay the costs of the arbitrator and court reporter fees and transcript, if a court reporter is requested by the parties. The parties shall be responsible for their own attorneys' fees and costs incurred in presenting their case to the Arbitrator. 3. Any dispute over the validity, effect, or enforceability of the provisions of this Article C, shall be for a court of law and not an arbitrator to decide. Agreement No. 4. The Arbitrator's authority will be limited to interpreting the provisions of the Memorandum of Understanding and the Arbitrator has no authority to add to, subtract from, or modify the Memorandum of Understanding in any way. The Arbitrator shall have the authority to determine questions of arbitrability of contract interpretation disputes. The Arbitrator shall render a written award within 30 days after the matter is submitted for determination, and the award of the arbitrator shall be final and binding on the City, the Association and the employee. 5. At least ten business days before the scheduled arbitration, the parties shall exchange the following information: (i) a list of all witnesses each party intends to call during its case -in -chief; and (ii) copies of all documents each party intends to introduce during its case -in -chief. D. This Article XXI is entered into under the California Arbitration Act and the Meyers- Milias-Brown Act, and shall be interpreted and construed in accordance with the law and procedures developed under those respective statutes. ARTICLE XXII — Reopener: A. Parties agree to reopener regarding amendments to the Personnel Merit System, modification of Municipal Code that covers Personnel Merit System; B. Parties agree to reopener regarding employee evaluation process, procedure, forms, and evaluation criteria; C. Parties agree that any and all changes proposed pursuant to this reopener provision can only be implemented by mutual agreement of the parties. For the Association: For the City of EI Segundo: Paul Samaras, President Scott Mitnick, City Manager Eduardo Schonborn David Serrano, Director of Human Resources Maria Cerritos Lauren Daniels, Human Resources Manager Evanette Gettler Dana Hang, Sr. Human Resources Analyst Emma Johnson Leslie D. Campbell, Human Resources Analyst 29 Agreement No. Date: Date: