HomeMy WebLinkAboutE-13 Staff Report - Restated MOU for SEIUCONSENT ITEM
E-13
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TANYA BRAGG, DIRECTOR OF HUMAN RESOURCES & RISK MANAGEMENT
DATE: JUNE 17, 2019
SUBJECT: APPROVAL OF AMENDED AND RESTATED MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF AZUSA AND THE SERVICE
EMPLOYEES INTERNATIONAL UNION, LOCAL 721
BACKGROUND:
The City’s Negotiation Team consisting of Tanya Bragg, Director of Human Resources & Risk
Management and Talika Johnson, Director of Finance, has been in Negotiations with the Service
Employees International Union, Local 721 (SEIU). The SEIU membership consists of Public Works
Workers and Supervisors. Mutual agreement between the City of Azusa and SEIU has been reached;
therefore, Negotiations with the SEIU has been concluded. This action will amend and restate the
existing Memorandum of Understanding (MOU) of the SEIU with a contract term through June 30,
2020.
RECOMMENDATION(S):
It is recommended that the City Council take the following action:
1)APPROVAL OF AMENDED AND RESTATED MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF AZUSA AND THE SERVICE
EMPLOYEE INTERNATIONAL UNION
ANALYSIS:
The Negotiation sessions consisted of several discussions of the City of Azusa’s growing concern
related to Other Post-Employment Benefits (OPEB) costs, San Gabriel vs. Flores decision, Flexible
Benefit Plan: specifically, Cash in Lieu Payments and Reduction of Overtime. Other discussions
consisted of the City’s desire to keep all Bargaining Group MOUs on the same Contract Term and the
recommendation to reduce the City’s structural deficient b y not providing on schedule Cost of Living
Adjustment(COLA) increases over the term of this contract.
APPROVED
CITY COUNCIL
6/17/2019
The MOU between the City of Azusa and SEIU expired on June 30, 2018. Amongst several mutually
agreed upon concessions, the provisions of the proposed MOU include the following compensation and
benefit adjustments:
1. Contract Term: July 1, 2018 through June 30, 2020.
2. Single One Time Lump Sum: Fiscal Year 2018-2019: 3% (prorated based on hire date)
Fiscal Year 2019-2020: 3% (prorated based on hire date)
3. Deferred Compensation Plans: Increase City’s contribution from $45 to $90 per month
4. Equipment Allowance: Increase the current yearly allowance of $235 to $300
annually.
5. Overtime & Compensation Time: Comp Time Max. Accumulation Cap & Carryover
changed from 160 to 240 hours
6. Overtime Meal Period: Increased from $15 to $16
7. Flexible Benefit Plan: Created new max caps on cash-out of any excess funds:
Employees hired on/before 06/30/2016:
• Effective through 12/31/2019 place max cap at
$1,346/mo
• Effective 01/01/2020 reduce max cap to
$1,000/mo
Employees hired on/after 07/01/2016:
• Effective 07/01/2019 max cap of $300/mo
8. Medical Waiver: Place new limits on employees hired on/before
06/30/2016 and who are already on a medical waiver as
of 01/01/2019 (currently have no max cap & get full
FBP amount which is currently $1,346/mo):
• Effective through 12/31/2019, limit medical
waiver amount to $1,346/mo
• Effective 01/01/2020 reduce medical waiver
amount to $1,000/mo
• Place new limit of $300/mo for employees hired
on/before 06/30/2016 and who are not already on
a medical waiver as of 01/01/2019
9. Certification Pay: Effective 07/01/2019, change incentive to flat rate
of $150/month (currently 2% with max cap of
$125/mo)
10. Health Reimbursement Arrangement Establish HRA’s for employees hired on or after
(HRA) Account: 07/01/2019, with City contributions as follows:
• $2,000 - Initial deposit upon hire
• $1,000 – Annual deposit in July of each year for
1-5 years of continuous service
• $2,000 – Annual deposit in July of each year for
6-10 years of continuous service
• $3,000 – Annual deposit in July of each year for
11+ years of continuous service
• Requires a 5 year vesting period
There are other non-substantive language clean-up throughout the MOU, including but not limited to:
updating language to be consistent with other MOU agreements and state/federal laws, terms used for
gender identity, consistent formatting, use of terms and updated salary schedule.
FISCAL IMPACT:
The cost of the aforementioned SEIU benefit adjustments is estimated at $86,575 for the term of this
contract, of which approximately 6% (or $5,195) is allocated to the General Fund. The remainder
contract costs will be allocated to Special Revenue Funds and the Sewer Fund. Of the total estimated
contract cost of $86,575, a portion of that total is cost, $60,900 is for a one-time only payment. The
benefit adjustments have been included in the FY 2019/20 Proposed Budget being presented to City
Council for adoption on June 17, 2019, and will be programmed in future budget years as applicable.
Prepared by: Fiscal Impact Reviewed by:
Tanya R. Bragg Talika M. Johnson
Director of Human Resources & Risk Management Director of Finance
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) Amended and Restated Memorandum of Understanding between the City of Azusa and the
Service Employee International Association
— i —
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF AZUSA
AND THE
SERVICE EMPLOYEES INTERNATIONAL UNION
LOCAL 721
JULY 1, 2018 THROUGH JUNE 30, 2020
July 1, 2018 through June 30, 2020
— 1 —
TABLE OF CONTENTS
1. TERM OF MEMORANDUM OF UNDERSTANDING ............................................ 4
2. IMPLEMENTATION ..................................................................................................... 5
3. SAVINGS CLAUSE ........................................................................................................ 5
4. TOTAL COMPENSATION ........................................................................................... 5
5. EMPLOYEE RIGHTS ..................................................................................................... 5
5.1 Protection of Rights ............................................................................................. 5
5.2 Anti-Discrimination ............................................................................................. 5
6. UNION RIGHTS ............................................................................................................. 6
6.1 Payroll Deductions .............................................................................................. 6
6.2 Maintenance of Membership .............................................................................. 7
6.3 Reporting Requirements ..................................................................................... 8
6.4 Visits by Union Representatives ........................................................................ 9
6.5 Use of City Facilities and Equipment ................................................................ 9
6.6 Communication Access ....................................................................................... 9
6.7 Union Steward Program ..................................................................................... 9
6.8 Union Release Time ........................................................................................... 10
6.9 Contract Negotiations ....................................................................................... 11
6.10 New Employee Orientations ............................................................................ 11
7. CITY RIGHTS ................................................................................................................ 12
7.1 Management Rights ........................................................................................... 12
7.2 Conformance with Rules ................................................................................... 14
7.3 Meet and Confer ................................................................................................. 14
8. SEPARABILITY............................................................................................................. 14
9. MAINTENANCE OF EXISTING BENEFITS ............................................................ 14
10. WORKWEEK AND TIMEKEEPING INTERVAL ................................................... 15
10.1 Workweek ........................................................................................................... 15
10.2 Workday .............................................................................................................. 15
10.3 Timekeeping Interval ........................................................................................ 15
11. SALARY ......................................................................................................................... 16
11.1 Salary Increases .................................................................................................. 16
11.2 Automatic Payroll Deposit ............................................................................... 16
11.3 Single Lump Sum Payments ............................................................................ 16
12. ADDITIONAL COMPENSATION AND PREMIUM PAY .................................... 17
12.1 Working Out of Classification .......................................................................... 17
12.2 Bilingual Pay ....................................................................................................... 18
12.3 Callback ............................................................................................................... 18
Memorandum of Understanding — SEIU Local 721
— 2 —
12.4 Deferred Compensation Plan ........................................................................... 19
12.5 Equipment Allowance ....................................................................................... 20
12.6 Longevity Premium ........................................................................................... 20
12.7 Overtime and Compensatory Time ................................................................. 21
12.8 Night Shift Differential ...................................................................................... 23
12.9 Paint Crew ........................................................................................................... 23
12.10 Standby ................................................................................................................ 24
12.11 Uniform Allowance ........................................................................................... 25
12.12 Weekend Assignment ....................................................................................... 25
13. FAIRNESS AGREEMENT ........................................................................................... 25
14. DAMAGE TO PERSONAL EFFECTS........................................................................ 26
15. EMPLOYEE ASSISTANCE PLAN ............................................................................. 26
16. FLEXIBLE BENEFIT PLAN ......................................................................................... 26
16.1 Definition............................................................................................................. 26
16.2 FBP Contributions .............................................................................................. 27
16.3 Eligibility ............................................................................................................. 28
16.4 Termination ......................................................................................................... 28
16.5 Medical Waiver Option ..................................................................................... 29
16.6 Qualified Benefits ............................................................................................... 29
16.7 Vision Insurance ................................................................................................. 29
16.8 Dental Insurance ................................................................................................ 30
16.9 “Cadillac Tax” .................................................................................................... 30
17. LEAVE TYPES ............................................................................................................... 30
17.1 Bereavement Leave ............................................................................................ 30
17.2 Holidays .............................................................................................................. 31
17.3 Industrial Leave .................................................................................................. 33
17.4 Sick Leave ............................................................................................................ 35
17.5 Vacation ............................................................................................................... 40
18. CERTIFICATION AND LICENSE ............................................................................. 41
18.1 City Obligation of Costs .................................................................................... 41
18.2 Certification Incentive Pay ............................................................................... 41
19. LIFE INSURANCE ....................................................................................................... 42
20. LONG TERM DISABILITY INSURANCE ................................................................ 42
21. RETIREMENT ............................................................................................................... 43
21.1 California Public Employees’ Retirement System ......................................... 43
21.2 Public Agency Retirement System (PARS) .................................................... 46
21.3 Retiree Health Benefits ...................................................................................... 46
22. TUITION REIMBURSEMENT .................................................................................... 48
July 1, 2018 through June 30, 2020
— 3 —
22.1 Objective .............................................................................................................. 48
22.2 Eligibility ............................................................................................................. 49
22.3 Courses may be eligible if they: ....................................................................... 49
22.4 Reimbursement .................................................................................................. 50
23. FLEXIBLE STAFFING POSITIONS ........................................................................... 51
24. LABOR-MANAGEMENT COMMITTEE ................................................................. 52
25. LAY OFF ........................................................................................................................ 52
EXECUTION OF THE NEW AGREEMENT .......................................................................... 54
Memorandum of Understanding — SEIU Local 721
— 4 —
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF AZUSA
AND THE
SERVICE EMPLOYEES INTERNATIONAL UNION – LOCAL 721
JULY 1, 2018 THROUGH JUNE 30, 2020
This Memorandum of Understanding (hereinafter referred to as “MOU”) is entered into
with reference to the following facts:
(1) The Service Employees International Union – Local 721 (hereinafter referred to as
“Union”) is the recognized employee organization representing those personnel
(hereinafter referred to as “employees”) employed by the various departments of
the City of Azusa (hereinafter referred to as “City”), and occupying the
classifications as listed in Exhibit “A,” attached hereto;
(2) In the interest of maintaining harmonious relations between the City and those
employees represented by the Union, authorized representatives of the City and
the Union have met and conferred in good faith, exchanging various proposals
concerning wages, hours and other terms and conditions of employment to
affected employees; and
(3) The authorized representatives of the City and the Union have reached an
understanding and agreement as to certain changes in wages, hours and other
terms and conditions of employment of the affected employees which shall be
submitted to the City Council of the City for approval and implementation of these
changes by appropriate ordinance, resolution, or other lawful action.
(4) It is understood that this MOU shall constitute a bar to any petition or request for
recognition of any classification(s) of employees covered by this MOU.
Therefore, the City and the Union agree that, subject to approval and implementation
by the City Council of the City, the wages, hours and other terms and conditions of
employment for all affected employees shall be altered as follows:
1. TERM OF MEMORANDUM OF UNDERSTANDING
The term of this MOU shall commence July 1, 2018 and shall continue in full force and
effect until June 30, 2020.
July 1, 2018 through June 30, 2020
— 5 —
All provisions of this MOU, except to the extent as allowed by the re-openers expressed
in this MOU shall remain in full force and effect until a new successor MOU has been
agreed upon between the parties.
2. IMPLEMENTATION
This MOU is subject to approval of the City Council of the City of Azusa, and following
such approval shall be implemented by appropriate resolution(s) or ordinance(s) of the
City Council.
3. SAVINGS CLAUSE
Should any State or Federal law mandate the loss of revenue to the City as a result of
the implementation of any clause of this MOU, or should any clause or provision of this
MOU be found to be inoperative, void, or invalid by law or a court of competent
jurisdiction then those changes alone shall not be given effect. In the event of such
invalidation, the City and the Union agree to meet within thirty (30) days from said
invalidation and confer in good faith to determine an alternative and economically
equitable as applicable, clause or provision.
4. TOTAL COMPENSATION
As a matter of philosophy, the Union and the City recognize that compensation consists
of terms and conditions of employment, other than those represented solely by salary.
Further, the City and the Union recognize that the changes in wages, hours and other
terms and conditions of employment as set forth in this MOU constitute additions to the
total compensation received by affected employees.
5. EMPLOYEE RIGHTS
5.1 Protection of Rights
The parties mutually recognize and agree to protect the rights of all employees
hereby to join and/or participate in protected union activities, or to refrain from
joining or participating in protected activities in accordance with Government Code
§3500, et seq.
5.2 Anti-Discrimination
The City and the Union agree they shall not discriminate against any employee
because of race, color, sex, sexual orientation, gender identity or expression,
Memorandum of Understanding — SEIU Local 721
— 6 —
religious or political affiliation, creed, citizenship status, military or veteran service
status, marital status, pregnancy, age (over 40), national origin, ancestry, medical
condition, physical or mental disability, or any other basis protected by federal, state
or local laws. The City and the Union shall reopen any provisions of this Agreement
for the purpose of complying with any final order of the 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.
6. UNION RIGHTS
6.1 Payroll Deductions
To extent the funds are available and such deductions are allowed by law, the City
shall deduct on a regular basis from the pay of all employees in the classifications
and positions recognized to be represented by the Union, funds for membership
dues and/or political contributions.
6.1.1 Indemnification
The Union agrees to hold the City harmless and indemnify the City against
claims, causes of action or lawsuits arising out of the deductions or
transmittal of such funds to the Union, except for the intentional failure of the
City to transmit to the Union monies deducted from the employees pursuant
to this Article.
6.1.2 Remittance of Funds
The City shall electronically remit such funds to the Union within thirty (30)
days following their deduction. The remittance shall be accompanied by an
electronic list of all current employees in the unit, which indicates the
effective date(s) of the remittance, each employee’s name, employee
identification number, hourly rate of pay, and the amount(s) being remitted
on behalf of each employee.
As applicable, the Union shall notify the City of any change(s) in the
amount(s) of such deductions within thirty (30) days of the employee’s
written request to the Union.
July 1, 2018 through June 30, 2020
— 7 —
6.1.2.1 Membership Dues
The City shall deduct union membership dues, in an amount as
determined by the Union, from every paycheck of each employee
who voluntarily authorizes such deductions in writing, on a form to
be provided for this purpose.
6.1.2.2 Committee on Political Education (COPE)
The City shall deduct amount(s), if any, as determined by the
employee, from every paycheck of each employee who voluntarily
authorized such deduction(s) in writing, on a form to be provided for
this purpose.
6.2 Maintenance of Membership
6.2.1 All unit members who, on August 1, 2010 or thereafter, are members
of the Union in good standing shall maintain membership in the
Union, including payroll deductions in Section 6.1 above, for the
term of this MOU, except as otherwise provided below.
6.2.2 The Union hereby agrees to hold harmless the City of Azusa and its
officers and employees from any claim loss or liability or cause of
action of any nature whatsoever arising out of the implementation of
this article.
6.2.3 Every employee who is a member of the Union shall have the right to
withdraw from membership between June 1st and June 15th in the
year of expiration of this MOU. To withdraw from membership, the
employee shall notify SEIU, in writing, of their termination of
authorization for union dues payroll deductions. Such notification
shall be delivered in person, or by United States mail, and should be
in the form of a letter, signed and dated by the individual employee,
containing the following information: employee name, employee
identification number, job classification, employer’s name, and a
statement of request to cancel union dues payroll deductions for
SEIU.
Memorandum of Understanding — SEIU Local 721
— 8 —
6.3 Reporting Requirements
The City shall notify SEIU, in writing, of all employees represented under this MOU,
who are hired, promoted, demoted, transferred, reclassified, retired, separated from
service, receive a salary/step merit increase, or any other change in employment
status with the City.
The City shall provide the following information for each employee within ten (10)
business days of hire or change in employment status and in the first week of
January, April, July and October of each year:
• Full name
• Employee identification number
• Job classification
• Date of hire
• Effective date of change
• Home address
• Home mailing address (if different)
• Home phone number
• Personal cell phone number (if known)
• Personal e-mail address on file (if any)
• Work location (name of facility and department)
• Work address
• Work phone numbers (landline and cell, as applicable)
• Salary anniversary date, as applicable
• Salary range
• Current salary step
• Current rate of pay
July 1, 2018 through June 30, 2020
— 9 —
The City agrees to provide such information to the Union in a usable electronic
format (preferably Excel).
6.4 Visits by Union Representatives
Representatives from the Union will be granted reasonable access to City facilities
and employees in the bargaining unit for the purpose of investigating grievances
and to conduct official union business. The visits shall not interfere with the normal
operations of the City.
6.5 Use of City Facilities and Equipment
The City agrees to permit the reasonable and limited use of City facilities and
equipment by Union representatives for conducting official union business. The use
of City facilities must be scheduled in advance by contacting the Human Resources
Director, appropriate Department Head, or designee. The date, time, location, and
intervals of such meetings shall be mutually agreed upon by the parties.
6.6 Communication Access
6.6.1 Bulletin Boards
The City will provide bulletin boards to post notices regarding union
business only. These bulletin boards will be maintained by the Union in an
orderly manner. All material posted must be dated and contain the initials of
a union representative.
6.6.2 Electronic Messages
Union representatives will be allowed reasonable use of the City’s e-mail
system to communicate with unit employees regarding union business.
6.7 Union Steward Program
The Union may elect or appoint up to two (2) stewards in the City. Stewards are
recognized as representatives of SEIU in the City with the power to bind SEIU in all
matters pertaining to this MOU. The Union agrees to notify the City in writing of
the names of its stewards and the effective dates of their election or appointment.
There shall be no union activity on City time or premises, except as provided for in
this MOU or by applicable law(s). A steward is permitted paid release time during
regularly scheduled working hours, without any loss of compensation or benefits, to
Memorandum of Understanding — SEIU Local 721
— 10 —
represent SEIU in grievances, administrative interviews, Skelly conferences,
arbitration, hearings or conferences required by the Public Employee Relations
Board (PERB), court, or depositions necessary and consistent with the
representational rights granted by the Meyers-Milias-Brown Act (MMBA), as would
legally require such pay. Upon request, Stewards shall also be permitted a
reasonable amount of preparation time pursuant to this provision. A steward will
not absent themself from work without first obtaining the permission of their
supervisor. To obtain permission, the steward shall identify: a) the specific reason
for requesting permission, b) the employee(s) to be represented, and c) the general
issue involved. The employee shall wait to receive permission before leaving work.
The Union agrees City services should not be negatively affected by any steward
activity permitted by this provision. Subject to the foregoing, the City agrees to not
unreasonably withhold permission.
Stewards shall not be entitled to make any claim for compensation for time spent on
steward business during the steward’s non-regular working hours.
6.8 Union Release Time
Chapter Board Members and Stewards will each be allowed a paid leave of absence,
for up to one (1) shift per month, for Union Release Time to attend meetings and/or
training. Such Union Release Time may accrue for up to a maximum of eighty (80)
hours each calendar year. There shall be no more than two (2) unit employees on a
paid leave of absence for Union Release Time at any given time. SEIU agrees City
services should not be negatively affected by the use of Union Release Time and the
use of such time is subject to prior written approval by the employee’s supervisor.
Subject to the foregoing, the City agrees to not unreasonably withhold permission.
In addition, an employee elected, or appointed, as an Executive Board Member shall
be allowed a paid leave of absence for one (1) shift per month for the purpose of
traveling to, and attending, the monthly Executive Board meetings.
An employee on Union Release Time will remain on the City’s payroll and continue
to be eligible for all compensation, benefits, and accruals in the same manner as if
they were actively working. The City will continue to pay for the employee’s
compensation and for benefits provided to the employee during hours reported as
Union Release Time.
July 1, 2018 through June 30, 2020
— 11 —
6.9 Contract Negotiations
The City shall release no more than two (2) primary unit employees, and up to two
(2) alternate unit employees who will be released only in the event the primaries are
unavailable, to participate in collective bargaining with the City. The employee(s)
shall be permitted to attend bargaining sessions and any required caucus time
during regularly scheduled work hours. Such unit employee(s) attending a
scheduled bargaining session or caucus time shall continue to be eligible for all
compensation, benefits, and accruals in the same manner as if they were actively
working on that date. There shall be no overtime compensation for meetings which
are held outside of regularly scheduled work hours.
6.10 New Employee Orientations
The City shall provide the Union with at least ten (10) business days’ advance
written notice of each new employee orientation (NEO), regardless of the number of
participants and/or manner in which the NEO occurs (i.e. in person, online, or
otherwise). Shorter notice may be provided in a specific instance where there is an
urgent need that is critical to city operations that was not reasonably foreseeable. If
the NEO is to occur over more than one (1) full business day, then the notice shall be
provided at least ten (10) business days in advance of the first day of the NEO.
Union representatives shall be permitted to make a presentation, of up to one (1)
hour, during a portion of the NEO. The Union’s presentation may include written,
audio, and/or visual materials; however, the Union shall be solely responsible for
providing any such materials as well as any necessary technical equipment that is
not already available as part of the City’s NEO. No management representative shall
be present during the Union’s presentation. The City shall provide paid release time
for the new hires and stewards to participate in the NEO.
Attendance at an NEO shall be mandatory for each new hire. For the purpose of this
section, new hires shall be defined to include any employee new to SEIU Local 721,
including but not limited to employees entering the unit through accretion or
promotion/demotion.
The Union shall provide the following for the City to include in their new hire
packet to be distributed at the NEO:
• Applications for union membership and COPE
• Copy of the current MOU
Memorandum of Understanding — SEIU Local 721
— 12 —
• Contact information of the designated union representative(s)
Violations of this side letter are subject to the grievance procedure, as outlined in
Article 15 of the City’s Rules of the Civil Service System.
7. CITY RIGHTS
7.1 Management Rights
The City reserves, retains and is vested with, solely and exclusively, all rights of
Management which have not been expressly abridged by specific provision(s) of this
MOU or by law to manage the City, as such rights existed prior to the execution of
this MOU. The sole and exclusive rights of Management, as they are not abridged by
this MOU or by law, shall include, but not be limited to, the following:
7.1.1 To manage the City generally and to determine the issues of policy.
7.1.2 To determine the existence or nonexistence of facts which are the
basis of the Management decision.
7.1.3 To determine the necessity and organization of any service or activity
conducted by the City and expand or diminish services.
7.1.4 To determine the nature, manner, means and technology, and extent
of services to be provided to the public.
7.1.5 To determine methods of financing.
7.1.6 To determine types of equipment or technology to be used.
7.1.7 To determine and/or change the facilities, methods, technology,
means, and size of the work force by which the City operations are to
be conducted.
7.1.8 To determine and change the number of locations, relocations, and
types of operations, processes and materials to be used in carrying
out all City functions including, but not limited to, the right to
contract for or subcontract any work or operations of the City;
provided, however:
7.1.8.1 City will bargain about effects of any decision to contract out work
historically performed by unit members.
July 1, 2018 through June 30, 2020
— 13 —
7.1.8.2 Except in the case of a bona fide emergency, City will
provide a minimum ninety (90) calendar day advance notice
on any proposed contracting out of work historically
performed by unit members and will commence meeting
and conferring over the effects within ten (10) business days,
excluding holidays, of said notice.
7.1.8.3 If a proposed contractor pays less than the economic value of
City employee’s wages and economic benefits, the City will
notify the Union and, at a time when such discussions
would be meaningful, informally discuss alternatives to
contracting out with the Union. The parties agree to conduct
discussions in good faith, but acknowledge that this is not
bargaining (meet and confer).
7.1.9 To assign work to and schedule employees in accordance with
requirements as determined by the City and to establish and change
work schedules and assignments.
7.1.10 To relieve employees from duties for lack of funds or lack of work or
similar non-disciplinary reasons.
7.1.11 To establish and modify productivity and performance programs
and standards.
7.1.12 To discharge, suspend, demote or otherwise discipline employees for
proper cause.
7.1.13 To determine job classification and to reclassify employees.
7.1.14 To hire, transfer, promote or demote employees for non-disciplinary
reasons in accordance with this MOU and applicable Resolutions and
Codes of the City.
7.1.15 To determine policies, procedures and standards for selection,
training and promotion of employees.
7.1.16 To establish employee performance standards including, but not
limited to, quality and quantity standards and to require compliance
therewith.
Memorandum of Understanding — SEIU Local 721
— 14 —
7.1.17 To maintain order and efficiency in its facilities and operation.
7.1.18 To establish and promulgate and/or modify rules and regulations to
maintain order and safety in the City which are not in contravention
with this Agreement.
7.1.19 To take any and all necessary action to carry out the mission of the
City in emergencies.
7.2 Conformance with Rules
The City shall have the right to exercise the rights provided in Sections 7.1.9 through
7.1.16 of the Management rights clause, in accordance with the Personnel Rules and
Regulations as they exist as of May 16, 1988, and shall exercise these rights in
conformance with the Personnel Rules and Regulations.
7.3 Meet and Confer
Except in emergencies, or where the City is required to make changes in its
operations because of the requirements of law, whenever the exercise of
Management’s rights shall impact on employees of the bargaining unit, the City
agrees to meet and confer with representatives of the Union regarding the impact of
the exercise of such rights, unless that matter of the exercise of such rights is
provided for in this MOU, or in Personnel Rules and Salary Resolutions and
Administrative Code(s) which are incorporated in this Agreement. By agreeing to
meet and confer with the Union as to the impact and the exercise of any of the
foregoing City Rights, Management’s discretion in the exercise of these rights shall
not be diminished.
8. SEPARABILITY
Should any provisions of this MOU be found to be inoperative, void, or invalid by a
court of competent jurisdiction, all other provisions of this MOU shall remain in full
force and effect for the duration of this MOU.
9. MAINTENANCE OF EXISTING BENEFITS
Except as provided herein, all wages, hours and economic terms and conditions of
employment presently enjoyed by employees shall remain in full force and effect
during the entire term of this MOU, unless mutually agreed to the contrary by both
parties hereto.
July 1, 2018 through June 30, 2020
— 15 —
10. WORKWEEK AND TIMEKEEPING INTERVAL
10.1 Workweek
The regular workweek for all employees covered by this MOU shall be forty (40)
hours for a seven (7) day period beginning at 12:01 A.M. each Sunday and shall
consist of four (4) consecutive days a week and ten (10) hours per day.
Within certain departments there exists a compelling need for certain employees to
work a five (5) day forty (40) hour week. Upon a clear showing of need and with the
affected employees consent, the department head may schedule employees
accordingly.
Daily hours of work or shifts for employees within departments shall be assigned by
the department head, as required to meet the needs of the department.
10.1.1 Notwithstanding Section 10.1, the City may maintain a five (5), eight
(8) hour days per week schedule for employees currently assigned to
such a schedule. Further, the City may assign a five (5), eight (8) hour
per week schedule to employees preferring to work such a schedule.
10.2 Workday
Except as provided in Section 10.1.1, the workday will consist of ten and one half
(10½) hours, with break periods, to be scheduled in light of the departmental policy,
as follows:
One (1) forty (40) minute meal break
Two (2) fifteen (15) minute rest breaks
Two (2) fifteen (15) minute “wash-up” times may be taken, as needed, prior
to starting the meal period and at end of shift
The City reserves the right to determine the beginning and ending times of the
workday.
10.3 Timekeeping Interval
In compliance with the Fair Labor Standards Act (FLSA), the minimum timekeeping
interval shall be fifteen (15) minutes. Periods of time of seven (7) minutes or less
Memorandum of Understanding — SEIU Local 721
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shall be rounded down, and periods of time of eight (8) minutes or more shall be
rounded up.
11. SALARY
11.1 Salary Increases
There are no scheduled across-the-board cost-of-living-adjustments (COLAs) or
salary increases during the term of this MOU. The salary ranges in effect during the
term of this MOU are reflected in Exhibit “A.”
11.2 Automatic Payroll Deposit
The City will continue to offer Automatic Payroll Deposit in cooperation with any
bank that utilizes the Automated Clearing House service.
11.3 Single Lump Sum Payments
Upon the second (2nd) pay period following approval of this MOU by the City
Council, the City shall pay each employee covered by this MOU a single lump sum
payment in an amount which is equal to three percent (3%) of the employee’s salary
for the twelve (12) month period of July 1, 2018 through June 30, 2019.
Upon the second (2nd) pay period in July 2019, the City shall pay each employee
covered by this MOU a single lump sum payment in an amount which is equal to
three percent (3%) of the employee’s salary for the six (6) month period of July 1,
2019 through December 31, 2019.
Upon the second (2nd) pay period in January 2020, the City shall pay each employee
covered by this MOU a single lump sum payment in an amount which is equal to
three percent (3%) of the employee’s salary for the six (6) month period of January 1,
2020 through June 30, 2020.
Only employees who are on payroll, as of the effective date of the payment, shall
receive the payment.
It is the parties’ mutual intent that these payments shall not be considered as
pensionable compensation for the purposes of CalPERS.
July 1, 2018 through June 30, 2020
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12. ADDITIONAL COMPENSATION AND PREMIUM PAY
12.1 Working Out of Classification
12.1.1 Acting Pay
An employee who is requested by a supervisor or management to
temporarily act in the place of another employee, by assuming the
responsibilities and/or performing the duties of a position in a higher class,
shall receive additional compensation of five percent (5%) of their base pay
for the hours in which they are in an acting capacity, including hours
compensated at premium rates.
The minimum number of hours that must be worked for Acting Pay to be
applicable (from the first hour) shall be ten and a quarter (10.25) hours.
The maximum number of hours for which Acting Pay shall be applicable
shall be thirty-nine and three-quarters (39.75) hours.
If an employee is called upon to act in the higher capacity for forty (40) hours
or more, the provisions of Section 12.1.2 shall apply.
12.1.2 Pay Range
An employee who works more than thirty-nine and three-quarters (39.75)
consecutive working hours out of classification shall receive an upgrade
equal to the lowest step of the pay range for the higher class which provides
at least a five percent (5%) increase (or a five percent (5%) if the top step for
the pay range does not provide at least a five percent (5%) increase),
commencing the first hour of working out of classification and for each
consecutive hour thereafter. Working in a higher classification must be
approved by the department head in advance.
12.1.3 Restriction
An employee shall not continue acting in a higher classification, while
retaining their existing classification, for more than ninety (90) calendar days
in any fiscal year.
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12.1.4 Absence
An employee otherwise eligible for acting pay shall not be eligible during
scheduled periods of Vacation Leave or when on Sick Leave.
12.2 Bilingual Pay
The City shall pay one hundred dollars ($100.00) per month to each employee who
demonstrates verbal proficiency in a foreign language.
An additional payment of one hundred dollars ($100.00) per month shall be paid to
those employees who are proficient in writing the foreign language, if they are
assigned and required to translate the foreign language in writing during the
performance of their duties.
Such payment is conditional upon demonstration of proficiency by a qualified third-
party examiner mutually agreed upon by both the City and the Union. Employees
may apply for bilingual pay at any time; however, examinations shall be conducted
semi-annually.
12.3 Callback
If an employee is required to be called back to work after completing their normal
shift or after having left City premises or the employee’s work location, the
employee shall be compensated at the appropriate rate for each hour worked on
callback with a minimum of three (3) hours callback compensation at the
appropriate rate, regardless of whether the employee actually works less than three
(3) hours.
This provision shall be applicable to an employee even though the employee’s
regular work week is not complete, but shall not apply to an employee who is
continuing on duty for their normal work shift.
For the purposes of this section only, the time starts when the request for callback is
received by the employee.
12.3.1 Appropriate Rate of Pay for Callback
Callbacks may be entered as overtime or as compensatory time off within
applicable limits.
July 1, 2018 through June 30, 2020
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For the purpose of this section only, a twenty-four (24) hour period is defined
as 4:00 P.M. to 4:00 P.M. the next calendar day.
The following shall be paid at one and one-half (1½) times the regular rate of
pay, unless eligible for double time (2×):
• First call back, if received before 11:59 P.M. or after 6:00 A.M.
• All hours worked on their regularly scheduled shift consecutive with
the call back, if the employee performed work between 4:00 A.M. and
6:00 A.M. and is required to continue to work into their regularly
scheduled shift, until they have an eight (8) hour rest period.
The following shall be paid at the double time (2×) rate:
• First call back, if received between 12:00 A.M. (midnight) and 5:59 A.M.
• Second and all additional call backs during the same twenty-four (24)
hour period.
• All hours worked on their regularly scheduled shift consecutive with
the call back, if the employee was summoned to perform work before
4:00 A.M. and is required to continue to work into their regularly
scheduled shift, until they have an eight (8) hour rest period.
• All hours worked between 12:00 A.M. (midnight) and 5:59 A.M.
(including hours worked on a first call back that was received before
11:59 P.M. or after 6:00 A.M.).
• All hours worked in excess of twelve (12) consecutive hours shall be
compensated at two (2) times the normal rate until the employee has
an eight (8) hour rest period.
12.4 Deferred Compensation Plan
12.4.1 Employer Paid Contributions
The City shall provide forty-five dollars ($45.00) per month in deferred
compensation to each employee.
Effective July 1, 2019, the City shall provide ninety dollars ($90.00) per month
in deferred compensation to each employee.
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The employee may opt, once annually on January 1st, as to the investment
option to be credited.
12.4.2 Employee Contributions
Employees may opt to make additional contributions, up to the legal limits,
on their own behalf into their deferred compensation plan.
12.5 Equipment Allowance
The City agrees to provide each employee with a personal equipment allowance of
two hundred and thirty-five dollars ($235.00) per fiscal year.
Effective July 1, 2019, the City shall increase the personal equipment allowance to
three hundred dollars ($300.00) per fiscal year.
Employees who are employed for less than the fiscal year shall have their equipment
allowance prorated.
Personal equipment may include, but is not limited to, the purchase of safety
shoes/boots, work-related clothing, equipment, garments, hats/caps, safety glasses,
undershirts, belts, socks, shoe laces, sun glasses, boot insoles, gloves,
mission/cooling towels, sun block, and bug spray.
Employees may purchase their shoes/boots through the City’s vendor (currently Red
Wing and Boot Barn) or from a provider of their choice.
Any costs for the purchase of personal equipment in excess of the City’s maximum
reimbursement amount shall be paid by the employee.
12.6 Longevity Premium
The monthly longevity pay for employees shall be in accordance with the following
schedule:
10 years = $085
15 years = $175
20 years = $250
Notwithstanding the foregoing, employees currently receiving a higher dollar
amount of longevity pay than the amounts provided for above shall continue to
July 1, 2018 through June 30, 2020
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receive the higher dollar amount until eligible for an increase based on the schedule
set forth above.
12.7 Overtime and Compensatory Time
12.7.1 Eligibility
Employees shall be entitled to overtime pay, or compensatory time off, for all
hours worked in excess of ten (10) hours in one (1) work day or forty (40)
hours within the employee’s regular work week. Except as provided
elsewhere in this MOU, overtime shall be calculated at one and one-half times
(1.5×) the employee’s FLSA rate of pay.
For the purpose of this MOU, Holiday Pay, Sick Leave, and other
compensated time off shall count for the hours.
12.7.2 Accumulation
12.7.2.1 Compensatory time may be accumulated at the
appropriate rate for each hour of overtime worked to the
maximum accrual rate set by Federal law.
12.7.2.2 Overtime pay, or compensatory time off for overtime pay,
shall be accumulated in no less than fifteen (15) minutes
per day increments, subject to Section 10.3. When an
employee works less than fifteen (15) minutes per day of
overtime, the employee shall not receive compensatory
time for such overtime.
12.7.2.3 Accumulated compensatory time, not taken off in the pay
period in which it was earned, may be carried over to a
maximum of two hundred and forty (240) hours.
12.7.3 Authorization
Any compensation for overtime hours worked, such overtime work must be
authorized by the department head or the City Manager.
Memorandum of Understanding — SEIU Local 721
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12.7.4 Holiday Double Time
All hours worked during designated holidays (except for floating holidays),
as defined in Section 17.2, shall be compensated at a premium overtime rate
of two times (2×) the employee’s regular rate of pay.
12.7.5 Overtime Meal Stipend
Employees shall not be required to submit receipts to receive a meal stipend.
12.7.5.1 Beyond Regular Shift
When an employee is required to work continuous, unplanned
overtime beyond their regular shift, they shall be provided with a
meal, and time to eat the meal, no more than two (2) hours after the
commencement of such work and no less frequently than every four
(4) hours actually worked thereafter, or they shall receive a meal
stipend of fifteen dollars ($15.00) for each such period.
Effective July 1, 2019, the meal stipend shall increase to sixteen
dollars ($16.00).
12.7.5.2 Outside of Regular Shift
When an employee is required to perform scheduled or unscheduled
work outside of their regular work hours, as a result of an emergency
situation, they shall be provided with a meal, and the time to eat the
meal, no less frequently than every four (4) hours, or they shall
receive a meal stipend of fifteen dollars ($15.00) for each such four (4)
hour period.
Effective July 1, 2019, the meal stipend shall increase to sixteen
dollars ($16.00).
12.7.5.3 Before 5:00 A.M.
In the event an employee is summoned to work before 5:00 A.M. and
is required to continue to work into their regular shift on the same
task that they were summoned for, they shall be provided with a
meal, and time to eat the meal, no less frequently than every four (4)
July 1, 2018 through June 30, 2020
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hours, or they shall receive a meal stipend of fifteen dollars ($15.00)
for each such four (4) hour period.
Effective July 1, 2019, the meal stipend shall increase to sixteen
dollars ($16.00).
12.7.5.4 One Hour Prior to Regular Shift
Effective July 1, 2019, in the event an employee is required to report
to work one (1) hour prior to their regular shift, they shall be
provided with a meal, and time to eat the meal, or they shall receive
a meal stipend of sixteen dollars ($16.00).
12.7.5.5 Meal Periods during Emergencies
During an emergency situation, the time to eat the meal would not be
mandatory; however, an additional thirty (30) minutes for each
missed meal period shall be added to the end of the shift and paid at
the appropriate overtime rate.
12.7.6 Compensatory Time Cash-In Policy
An employee may convert into pay any accumulated compensatory time in
June and December of each year.
12.8 Night Shift Differential
An employee whose regular shift commences between the hours of 9:00 P.M. and
2:00 A.M. shall receive an additional one dollar ($1.00) per hour for hours worked on
that shift.
12.9 Paint Crew
Any employee, assigned to the paint crew in the Street Maintenance Division of
Public Works, who is scheduled to work after 12:00 A.M. (midnight) will receive an
additional twenty-five cents ($0.25) per hour for each hour worked after that time.
This additional pay constitutes premium pay and is not to be considered as a part of
the employee’s base salary.
Memorandum of Understanding — SEIU Local 721
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12.10 Standby
12.10.1 Definition
An employee shall receive Standby Pay when they are required to be
available for work for twenty-four (24) hours a day on seven (7) consecutive
days.
12.10.2 Standby Pay
The City agrees to pay time and one-half (1½) for standby time with a
minimum of two (2) hours per day, which will result in three (3) hours of
regular pay.
In the event an employee notifies the department they will be out sick for
their assigned standby, the employee shall not be entitled to standby pay for
the time period they are unable to perform their standby duties.
The hours shall be entered on time sheets as Premium Standby or Premium
Comp Time. Premium Comp time shall be limited to thirty (30) hours.
12.10.3 Qualifications
The Department Head shall determine which employees are qualified for
standby assignment. If an employee cannot serve on standby due to
insufficient practical knowledge, the Department Head shall make an
alternate assignment.
Standby assignment shall apply to those employees who can show, to the
Department Head’s satisfaction, that they can respond to a call out in the City
within one-half (½) hour or less. Qualified employees shall serve on a rotating
basis.
12.10.4 Vehicle Assignment
The City agrees to provide a City vehicle to each employee on Standby. This
assigned vehicle shall not be used for personal business.
July 1, 2018 through June 30, 2020
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12.11 Uniform Allowance
The City shall provide an adequate number of uniforms to each employee at no cost
to the employee. The City shall continue to pay one hundred percent (100%) of the
costs to clean, maintain, repair, and/or replace such uniforms.
12.12 Weekend Assignment
Within certain departments there may exist a need for certain employees to work a
scheduled four (4) consecutive day forty (40) hour workweek which includes
Saturday and/or Sunday. Any employees so assigned shall receive an additional one
dollar ($1.00) per hour for those hours worked on Saturday or Sunday or both if
included within their forty (40) hour work week. This additional pay constitutes
premium pay, and is not to be considered as part of the employee’s base salary.
13. FAIRNESS AGREEMENT
If the City gives any other employee(s) or bargaining unit(s) (excluding the APOA or
APMA) a higher amount, higher value of a benefit, or a lesser/slower reduction in any
current benefits (from that which was already in effect or negotiated as of January 1,
2018) than that which was given to employees in this MOU, employees in this unit shall
be given the same higher amounts, higher value of benefits, or lesser/slower reduction
in current benefits, starting on the same date(s), as those given to the other employee(s)
or bargaining unit(s).
This provision shall apply to the following terms:
• Single lump sum payments
• Salary increases
• Adding additional salary steps
• Flexible benefit plan (FBP) contributions
• Maximum caps on cash-back of excess FBP contributions
• Medical waiver options
• Vision insurance
• Dental insurance
• City contributions to deferred compensation plans (excluding AMMA)
• Premium pays or additional compensation
• Retiree medical benefits
Memorandum of Understanding — SEIU Local 721
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This provision shall expire on July 1, 2020, unless mutually agreed to otherwise by the
parties.
For clarification of intent:
This provision shall extend to any term(s) negotiated, granted, or implemented on behalf of any
other employee(s) or bargaining unit(s) - except as specifically excluded above - prior to July 1,
2020, even if such term(s) are not actually received by the employee(s) or bargaining unit(s)
until after July 1, 2020.
14. DAMAGE TO PERSONAL EFFECTS
If, in the course of business, personal clothing or effects of employees are accidentally
damaged or destroyed, the employee may submit a claim for reimbursement up to one
hundred dollars ($100.00) to the department head or designee. The department head, or
designee, shall have the authority to investigate the claim and recommend to the City
Manager or designee, to pay the full amount of the claim, deny the claim, or apportion
the claim based on normal wear and tear of the item and/or the extent of the employee’s
negligence in following proper safety procedures. It is expressly understood that
stockings and socks are exempt from this procedure. It is further expressly understood
that prescription eye glasses or contact lenses and hearing aid devices are exempt from
the one hundred dollar ($100.00) limit.
15. EMPLOYEE ASSISTANCE PLAN
The City will continue to maintain the Employee Assistance Plan.
16. FLEXIBLE BENEFIT PLAN
16.1 Definition
Effective August 1, 1993, the City’s Cafeteria Benefit Plan (CBP) was converted to an
IRS Section 125 Flexible Benefit Plan (FBP) administered by either the City or its
designee.
This plan can be used by the employee to pay for qualified benefits as determined
by the IRS and as set forth below. The provisions of this plan, including but not
limited to the excess contribution to deferred compensation plans, are subject to the
availability of such plans and legality of such deposits. In no case will a legal
prohibition be considered a breach of the City’s duty under these provisions.
July 1, 2018 through June 30, 2020
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16.2 FBP Contributions
16.2.1 Amount of Monthly FBP Contribution
16.2.1.1 For employees hired on or before June 30, 2016:
The City will maintain the FBP contribution at one
thousand three hundred and forty-six dollars ($1,346.00)
per month for each employee through June 30, 2019.
16.2.1.2 For employees hired on or after July 1, 2016:
The City will make an FBP contribution of twelve
hundred dollars ($1,200.00) per month for each employee
through June 30, 2019.
16.2.1.3 For all employees:
Effective July 1, 2019, the City will make an FBP
contribution of one thousand, four hundred dollars
($1,400.00) per month for each employee.
16.2.2 Premiums in Excess of FBP Contribution
In the event the total premiums and/or expenses for qualified benefits
selected by the employee exceed the amount of the FBP contribution, the
excess shall be deducted from pre-tax wages of the employee.
16.2.3 FBP Contribution in Excess of Premiums
16.2.3.1 For employees hired on or before June 30, 2016:
Through December 31, 2019, in the event there remains
any portion of the FBP contribution after all premiums
and/or expenses for qualified benefits selected by the
employee have been paid each month, then the employee
may choose to have the excess amount paid to them, up
to a maximum of one thousand, three hundred and forty-
six dollars ($1,346.00) per month.
Effective January 1, 2020, in the event there remains any
portion of the FBP contribution after all premiums and/or
Memorandum of Understanding — SEIU Local 721
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expenses for qualified benefits selected by the employee
have been paid each month, then the employee may
choose to have the excess amount paid to them, up to a
maximum of one thousand dollars ($1,000.00) per month.
16.2.3.2 For employees hired on or after July 1, 2016:
Through June 30, 2019, any remaining portion of the FBP
contribution, after all premiums and/or expenses for
qualified benefits selected by the employee have been
paid each month, shall be forfeited.
Effective July 1, 2019, in the event there remains any
portion of the FBP contribution after all premiums and/or
expenses for qualified benefits selected by the employee
have been paid each month, then the employee may
choose to have the excess amount paid to them, up to a
maximum of three hundred dollars ($300.00) per month.
16.3 Eligibility
In order for an employee to be eligible for the FBP contribution in any given month,
they must be on payroll on the first work day (excluding designated holidays) of
that month.
A new employee will be eligible for the full FBP contribution applicable to their
bargaining unit if they begin work on the first work day (excluding designated
holidays) of the month. An employee whose date of hire is on the second work day
(excluding designated holidays) of the month or thereafter will not be eligible for the
FBP contribution for that month.
If an employee does not meet the qualifying work time in any given month,
arrangements must be made with the Finance Department to reimburse the City for
any benefits that have already been paid out on the employee’s behalf for that
month. The Finance Department will notify the employee if they have not met the
qualifying work time for eligibility for the FBP contribution.
16.4 Termination
The City will not be responsible for payment of any qualified benefits on behalf of
the employee following the month of termination. If an employee represented by the
July 1, 2018 through June 30, 2020
— 29 —
Union wishes to continue their qualified benefits, advance payment for such
qualified benefits will be deducted from the employee’s final pay.
16.5 Medical Waiver Option
If an eligible employee elects not to participate in any medical plans provided by the
City and can show adequate proof of approved medical plan coverage, the
employee shall be eligible for a Medical Waiver Option.
Such alternative medical plan coverage must be verified initially and thereafter on
an annual basis through the presentation of a valid medical insurance card, or other
reasonable means of verification as approved by the Human Resources Director.
Alternative medical plan coverage must be maintained until the City’s next available
open enrollment period.
16.5.1 For employees hired on or before June 30, 2016, who are on a
medical waiver as of January 1, 2019:
The medical waiver option is to have one thousand, three hundred
and forty-six dollars ($1,346.00) paid to the employee each month,
through December 31, 2019.
Effective January 1, 2020, to have one thousand dollars ($1,000.00)
paid to the employee each month.
16.5.2 For employees hired on or before June 30, 2016 who are not on a
medical waiver as of January 1, 2019 and all employees hired on or
after July 1, 2016:
The medical waiver option is three hundred dollars ($300.00) paid to
the employee each month.
16.6 Qualified Benefits
An employee may use their FBP contribution to purchase a medical health, vision,
and/or dental insurance plan provided by the City.
16.7 Vision Insurance
The City shall provide a vision insurance plan for employees and their eligible
family members. If an employee elects to participate in the vision plan, they shall be
responsible for paying one hundred percent (100%) of all premium costs. These costs
Memorandum of Understanding — SEIU Local 721
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may be paid with funds available in the FBP contribution. The payment for any
additional cost, which is not covered by the FBP contribution, is the sole
responsibility of the employee and may be made via payroll deductions.
16.8 Dental Insurance
The City shall continue to provide a dental insurance plan for employees and their
eligible family members. If an employee elects to participate in the dental plan, they
shall be responsible for paying one hundred percent (100%) of all premium costs.
These costs may be paid with funds available in the FBP contribution. The payment
for any additional cost, which is not covered by the FBP contribution, is the sole
responsibility of the employee and may be made via payroll deductions.
16.9 “Cadillac Tax”
In the event provisions of the Affordable Care Act (ACA) require the payment of a
“Cadillac Tax,” during the term of this MOU, on medical insurance benefits
provided by the City, upon request, the parties shall re-open negotiations on the
issue. It is expressly understood by both parties that this re-opener does not obligate
the unit to anything more than a good faith discussion on the issue and that no
changes shall be implemented without mutual agreement. Absent such mutual
agreement by both parties, the status quo (all wages, benefits, economic and non-
economic terms and conditions of employment presently enjoyed by employees as
negotiated upon the effective date of this MOU) shall remain in full force and effect.
17. LEAVE TYPES
17.1 Bereavement Leave
An employee shall be provided up to forty (40) hours of paid Bereavement Leave in
the event of the death or imminent death of a member of their immediate family.
The City may require the submission of medical certification establishing an incident
of imminent death or proof of death. “Immediate family” member is herewith
defined as a parent, step-parents, sibling, step-siblings, spouse, domestic partner,
child, mother-in-law, father-in-law, grandparents, grandparents-in-law or relative
living within the employee’s household. Any person in loco parentis, defined to
include any person with whom the employee stood in the place of the parent or
child, will also be considered “immediately family” for the purpose of this benefit.
Bereavement Leave for close personal relationships, other than the listed
relationships, may be approved by Department Head and Director of Human
July 1, 2018 through June 30, 2020
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Resources. Such leave shall not be charged against the employee’s sick or vacation
leave balances.
In addition to Bereavement Leave, an employee may request up to two (2) days of
Sick Leave in the event of the death of an immediate family member. Such leave
shall be charged against the employee’s accrued Sick Leave balance and shall be
considered in calculating their ability to convert the balance.
17.2 Holidays
17.2.1 Designated Holidays
The employee shall receive time off with pay for the following holidays, but
only if the employee is in a paid status for the workday that precedes and
follows the holiday. If a holiday falls on an employee’s scheduled day off, the
employee shall receive the holiday on the next scheduled business day.
The dates upon which these holidays shall be observed each fiscal year are
listed below:
Memorandum of Understanding — SEIU Local 721
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Holiday Schedule Month FY2018/2019 FY2019/2020 FY2020/2021
Independence Day
July 4th July 04 04 06**
Labor Day
1st Monday in September Sept 03* 022* 07*
Columbus Day
2nd Monday in October Oct 8* 14* 012*
Veteran’s Day
November 11th Nov 12** 11* 11
Thanksgiving Day
4th Thursday in November Nov 22* 28* 26*
Christmas Day
December 25th Dec 25 25 28
New Year’s Day
January 1st Jan 01 1 01
Martin Luther King Day
3rd Monday in January Jan 21* 20* 18*
President’s Day
3rd Monday in February Feb 18* 17* 15*
Memorial Day
Last Monday in May May 27* 25* 31*
* = Monday
17.2.2 Floating Holidays
The City and the Union agree to two (2) floating holidays of ten (10) hours
each. All floating holidays shall be requested in advance from the appropriate
department head or division chief. Enough employees shall remain at work
during floating holidays so that the City’s business may be conducted.
Floating holidays shall accrue on July 1st of each year and must be taken by
the following June 30th, or the hours will be forfeited.
July 1, 2018 through June 30, 2020
— 33 —
17.3 Industrial Leave
A regular employee who is temporarily or permanently incapacitated as a result of
injury or illness determined to be compensable under the Workers’ Compensation
Act shall be granted industrial leave under the following terms and conditions:
17.3.1 An employee granted industrial leave shall continue to be
compensated at the employee’s regular rate of pay in lieu of
temporary disability payments.
17.3.2 Should it be determined that an employee’s illness or injury did not
arise in the course of the employee’s employment with the City or
that the employee is not temporarily or permanently incapacitated or
disabled as a result of the injury or illness, then the employee’s
accrued or, if insufficient, future Sick Leave shall be charged to
reimburse the City for any payments made to the employee pursuant
to Section 17.3.1 above.
17.3.3 An industrial leave of up to ninety (90) calendar days shall be
authorized for each injury or illness determined to be compensable
under the Workers’ Compensation Act. Paid leave may be continued
subject to review by the City Council at the end of such ninety (90)
calendar day period to a maximum of six (6) months. Supporting
medical documentation must accompany such requests for leave and
be submitted thirty (30) days prior to expiration date.
17.3.4 After ninety (90) calendar days employees who are disabled because
of a work related illness or injury receive Industrial Leave pay in lieu
of Total Temporary Disability payments and may supplement these
payments with sick leave, vacation leave or compensatory time off
they have earned. If deemed temporarily totally disabled or
permanently disabled and unable to return to work, employees may
apply for Long Term Disability.
17.3.5 Prior to the end of the six (6) months of paid leave pursuant to this
section, the employee may apply for benefits under the City’s long-
term disability plan, If the employee is qualified to receive benefits
under the disability plan, Vacation Leave and Sick Leave shall
accrue, and the City shall continue to pay benefits under the City’s
Flexible Benefit Plan and CalPERS so far as required by law for such
Memorandum of Understanding — SEIU Local 721
— 34 —
employee for an additional six (6) month period. An employee
receiving long-term disability may be eligible to return to work on or
before six (6) months from the time employee began receiving long-
term disability benefits. The employee shall notify the department
head as soon as practicable as to whether they will be returning to
work prior to the expiration of the six (6) month period in which the
employee has been on long term disability.
17.3.6 Except as provided in Sections 17.3.1 and 17.3.4 above, no employee
shall have accrued Sick Leave deducted while on industrial leave.
Vacation Leave and Sick Leave shall accrue for an employee on
industrial leave.
17.3.7 Industrial leave shall expire when one of the following conditions
occurs:
17.3.7.1 Employee is able to return to work to their regular position.
17.3.7.2 The day before the employee is retired or separated for
disability. The employee’s “retirement date” shall be the
first of the month after all of the following occur and are
determined by the California Public Employees’ Retirement
System:
17.3.7.2.1 The employee’s condition is determined to be
permanent or of an extended duration.
17.3.7.2.2 The degree of disability precludes continued
employment by the employee in their present
position.
17.3.7.3 After twenty-six (26) weeks of industrial disability
payments.
17.3.8 Physicians may be assigned in compliance with the Health and
Safety Code and the Workers’ Compensation Laws of the State of
California (Ref.: §4600 - Labor Code.)
July 1, 2018 through June 30, 2020
— 35 —
17.4 Sick Leave
Sick Leave shall not be construed as a right which an employee may use at their
discretion, but shall be allowed only in case of necessity or actual sickness or
disability. Sick Leave must be exhausted before compensatory time off or Vacation
Leave may be used for sick leave reasons. The parties acknowledge that the City is
governed by the Healthy Workplaces, Healthy Families Act of 2014 and that provisions
governing sick leave and its usage should be interpreted consistently where
possible.
17.4.1 Reasons for Use of Sick Leave
Sick Leave shall be granted for the following reasons:
17.4.1.1 The illness, diagnosis, care, or treatment of an existing
health condition of, or preventative care for, the employee.
17.4.1.2 The illness, diagnosis, care, or treatment of an existing
health condition of, or preventative care for, a qualified
family member, as defined by the Healthy Workplaces,
Healthy Families Act of 2014 which may include but is not
limited to a: parent, sibling, spouse, domestic partner, child,
mother-in-law, father-in-law, grandparent, grandparent-in-
law, or other relative living within the employee’s
household. Any person in loco parentis, defined to include
any person with whom the employee stood in the place of
the parent or child, will also be considered a “qualified
family member” for this purpose. Use of sick leave for close
personal relationships may be approved by the Department
Head or Human Resources Director.
17.4.1.3 Enforced quarantine of the employee in accordance with
Health Department regulations.
17.4.1.4 Medical, dental, orthodontic, and optical appointments for
the employee and/or qualified family members.
17.4.1.5 The parties agree that employees may utilize a maximum of
thirty (30) hours of Sick Leave during any one (1) calendar
year wherein the City will not question usage. Employees
must provide advance notice for such designation,
Memorandum of Understanding — SEIU Local 721
— 36 —
sometimes referred to as “Personal Business” Sick Leave
whenever possible. Personal Business Sick Leave shall be
approved or disapproved by the department head in
accordance with this section.
Departments are to use the earning code “PB” for this
purpose. This leave shall be debited against the employee’s
Sick Leave balance, but Sick Leave taken as “Personal
Business” Sick Leave shall not be taken into consideration
for the purposes of the sick leave cash-In program or in any
way negatively affect employee performance evaluations.
17.4.1.6 Any other reason that Sick Leave may be used under state
and federal law, including but not limited to the Healthy
Workplaces, Healthy Families Act of 2014.
17.4.2 Evaluation of Sick Leave Usage
A yearly evaluation period for the use of Sick Leave is established beginning
on the first payday on or after January. At the end of the time period, the
Finance Department will analyze and report to the various employees the
amount of Sick Leave earned, less the amount used, and the net accrued
during the calendar year.
17.4.2.1 Medical Certification Program
In the event an employee has used greater than one hundred and
twenty (120) sick leave hours in a calendar year [excluding hours
reported under FMLA, CFRA, PDL, and up to sixty (60) hours used
for a qualified family member] or exhibits a discernable pattern of
abuse (such as calling out before or after each weekend or holiday),
the employee may be placed on a Medical Certification Program.
An employee placed on a Medical Certification Program shall be
required to submit a certificate from a healthcare provider to be
eligible to utilize sick leave, for all reasons except those set forth in
Section 17.4.1.5.
An employee placed on a Medical Certification Program shall have
their sick leave usage reviewed no less than every six (6) months
while on the program. If the employee has used less than thirty (30)
July 1, 2018 through June 30, 2020
— 37 —
hours during the preceding six (6) month period, they shall be
removed from the program. If the employee’s pattern and/or usage
have not improved, they shall remain on the program until the next
evaluation period.
17.4.3 Procedures
17.4.3.1 Rate of Accrual
Each employee shall accrue sick leave at the rate of ten (10) hours per
month for each calendar month of paid employment.
17.4.3.2 Maximum Accumulation
17.4.3.2.1 For employees hired on or before June 30, 2016:
There is no maximum accumulation on sick leave
hours. Each employee shall maintain the right to
unlimited accumulation of all accrued sick leave
hours.
17.4.3.2.2 For employees hired on or after July 1, 2016:
Sick leave may be accumulated up to a maximum
of nine hundred and sixty (960) hours. Sick leave
accrual which exceeds the maximum
accumulation allowed shall not be paid out to the
employee nor shall the employee continue to
accrue additional sick leave until such time as the
accumulated hours fall below nine hundred and
sixty (960) hours.
17.4.3.3 Usage for Time Reporting
Sick leave shall not be taken in increments of less than thirty (30)
minutes.
17.4.3.4 Verification
A certificate from a healthcare provider may be requested for sick
leave absences of three (3) days or more.
Memorandum of Understanding — SEIU Local 721
— 38 —
17.4.4 Probationary Employee Sick Leave Usage
If an employee does not pass initial probation and become permanent, paid
Sick Leave in excess of thirty (30) hours in the first ninety (90) days of
employment must be reimbursed to the City or deducted from the
employee’s final paycheck.
17.4.5 Sick Leave During Vacation
If an employee becomes ill or injured while on vacation, they may, by
completing a Leave Request Form, use accrued Sick Leave time in lieu of
vacation time for the period of disability.
17.4.6 One-Fourth Conversion
Only employees hired on or before June 30, 2016 are eligible to participate in
a conversion of sick leave to cash.
If the employee has used more than three (3), but not more than six (6), days
of Sick Leave, not including time spent on personal business, bereavement,
FMLA, CFRA, PDL, or for a qualified family member, they will have the
following options:
17.4.6.1 Carry over the accrual and add it to their Sick Leave
balance.
17.4.6.2 Convert, only to the extent that their balance is more than
zero (0) at the beginning of the new year, one-fourth (¼) of
the accrual to vacation or convert one-fourth (¼) to cash
(but no combination of these two); unused, unconverted
leave would then be added to the employee’s Sick Leave
balance.
17.4.7 One-Third Conversion
Only employees hired on or before June 30, 2016 are eligible to participate in
a conversion of sick leave to cash.
If the employee has used no more than three (3) days of Sick Leave, not
including time spent on personal business, bereavement, FMLA, CFRA, PDL,
or for a qualified family member, they will have the following options:
July 1, 2018 through June 30, 2020
— 39 —
17.4.7.1 Carry over the accrual and add it to their Sick Leave
balance.
17.4.7.2 Convert, only to the extent that their balance is more than
zero (0) at the beginning of the new year, one-third (⅓) of
the accrual to vacation or convert one-third (⅓) of it to cash
(but no combination of these two); unused or unconverted
leave would then be added to the employee’s Sick Leave
balance.
17.4.8 Conversion to Cash upon Retirement or Separation
Only employees hired on or before June 30, 2016 are eligible to participate in
a conversion of sick leave to cash.
17.4.8.1 The employee may convert fifty percent (50%) of their
accrued Sick Leave balance to cash upon: death (if they had
attained permanent status); disability retirement (if they
have been employed by the City a minimum of five (5)
years); or voluntary retirement (if they have been employed
by the City a minimum of ten (10) years).
17.4.8.2 Upon separation for other reasons the employee may
convert fifty percent (50%) of their accrued Sick Leave
balance to cash for hours in excess of three hundred twenty
(320) hours to a maximum payment of two hundred forty
(240) hours.
17.4.9 Conversion to Service Credit Upon Retirement
Pursuant to the terms of the City’s contract, as amended, with the California
Public Employees’ Retirement System, upon voluntary retirement the
employee may convert one hundred percent (100%) of their accrued Sick
Leave balance, less any amount converted to cash under the provisions of
Section 17.4.8 to retirement service credit.
17.4.10 Conversion Deadline
A decision to convert Sick Leave according to the policies stated shall be
made by March 31st of each calendar year.
Memorandum of Understanding — SEIU Local 721
— 40 —
17.5 Vacation
17.5.1 Required Usage and Maximum Accumulation
17.5.1.1 An employee shall be required to use one-half (½) of their
annual vacation accrual yearly and shall be able to
accumulate unused vacation each year, up to the allowed
maximum.
17.5.1.2 For employees hired on or before June 30, 2016, the
employee may accumulate up to a maximum of fifty-two
(52×) times the current pay period rate of vacation accrual.
17.5.1.3 For employees hired on or after July 1, 2016, the employee
may accumulate up to a maximum of three hundred (300)
hours.
17.5.1.4 Vacation accrual which exceeds the maximum allowed shall
be paid to the employee in the following pay period in
which it is accrued.
17.5.1.5 In special cases where it has not been possible, due to work
load and other factors, for the employee to use their
vacation before reaching the maximum, it shall be within
the department head’s authority to authorize cash payment
in lieu of time off. The employee may direct the payoff
amount to their deferred compensation plan within
applicable legal limits.
17.5.2 Cash-In Policy
In June and December of each year, an employee may convert into pay
accrued vacation in excess of fifty percent (50%) of their annual accrual.
17.5.3 Accrual
Vacation Leave shall accrue as follows:
Through the 4th year of employment 90 hours per year
Through the 5th year of employment 120 hours per year
Through the 6th year of employment 128 hours per year
July 1, 2018 through June 30, 2020
— 41 —
Through the 7th year of employment 136 hours per year
Through the 8th year of employment 144 hours per year
Through the 9th year of employment 152 hours per year
Through the 10th year of employment 160 hours per year
Through the 11th year of employment 168 hours per year
Through the 12th year of employment 176 hours per year
Through the 13th year of employment, 184 hours per year
Through the 14th year of employment 192 hours per year
Through the 15th year of employment 200 hours per year
Through the 16th year of employment 210 hours per year
17.5.4 Special Pay Plan/Excess Vacation Annuity
Upon written request by the City, the parties shall re-open negotiations
regarding the establishment of a Special Pay Plan Annuity as an alternate
option for the reduction of accumulated paid leave. It is expressly understood
by both parties that this re-opener does not obligate the unit to anything more
than a good faith discussion on the issue and that no changes shall be
implemented without mutual agreement. Absent such mutual agreement by
both parties, the status quo (all wages, benefits, economic and non-economic
terms and conditions of employment presently enjoyed by employees as
negotiated upon the effective date of this MOU) shall remain in full force and
effect.
18. CERTIFICATION AND LICENSE
18.1 City Obligation of Costs
18.1.1 The City agrees to pay the cost of maintaining certification and
licenses that are within the minimum requirements for the licensee’s
job.
18.1.2 The City agrees to pay the costs for certification and renewal, as
required to maintain the certification, for which the employee is
receiving Certification Incentive Pay.
18.2 Certification Incentive Pay
18.2.1 The City shall pay a certification incentive pay to each employee who
maintains valid certification in Confined Space Entry, as follows:
Memorandum of Understanding — SEIU Local 721
— 42 —
Effective July 1, 2017, the certification incentive pay shall be paid at a
rate which is equal to two percent (2%) of salary each pay period, but
not to exceed a maximum payment of one hundred and twenty-five
dollars ($125.00) per month.
Effective July 1, 2019, the certification incentive pay shall be paid at a
flat rate of one hundred and fifty dollars ($150.00) per month.
18.2.2 The employee shall receive the incentive pay beginning the first full
pay period after submission of the documentation showing
completion to their supervisor or designee. It is the employee’s
responsibility to ensure the certification is kept current and submit
the required documents in a timely manner to continue to receive the
salary increase. Employees whose certifications expire will not be
paid the incentive until a copy of the renewed certificate is
submitted.
19. LIFE INSURANCE
The City shall provide term life insurance for each employee which is equal to one-and-
a-half (1.5X) times of their annual salary, rounded up to the nearest one thousand
dollars ($1,000), but not to exceed a maximum of two hundred thousand dollars
($200,000). The calculation of annual salary excludes overtime, standby, callback and
other forms of supplemental compensation.
20. LONG TERM DISABILITY INSURANCE
The City shall maintain in effect for the term of this agreement a long-term disability
(LTD) plan covering employees set forth herein. Said plan shall provide an employee
with a maximum of two-thirds (2/3) of their base salary. An employee may utilize their
accrued Sick Leave, vacation, and/or compensatory time to supplement the LTD
payment so as to receive one hundred percent (100%) of their base salary. The LTD plan
includes the following:
20.1 Provides 66.67% of the employee’s monthly salary;
20.2 Commences after a thirty (30) calendar day waiting period and provides a
benefit to age 65;
20.3 For the first thirty (30) days of non-job related illness or injury, the employee
will use accrued Sick Leave, compensatory time or Vacation Leave;
July 1, 2018 through June 30, 2020
— 43 —
20.4 The employee will be allowed to use accrued Sick Leave in conjunction with
the LTD plan to provide for a full pay check;
20.5 At no time will an employee receive more than one hundred percent (100%)
of their base pay;
20.6 The premium will be added to the employee’s gross pay and deducted from
the net pay so as to make the benefits exempt from further taxation.
21. RETIREMENT
21.1 California Public Employees’ Retirement System
The City provides employees with retirement benefits through the California Public
Employees’ Retirement System (CalPERS).
Definitions and terms in this Section are intended to comply and be in conformity
with the California Public Employees’ Pension Reform Act of 2013 (PEPRA) and/or
California Government Code §7522.04.
21.1.1 Definition of a “Classic” Member
Any employee hired by the City on or prior to December 31, 2012; or any
employee previously employed by a CalPERS participating public agency,
hired by that agency prior to January 1, 2013, and who becomes employed by
the City with less than a six (6) month break in service, or any employee who
is eligible for reciprocity with another California public retirement system.
21.1.2 Definition of a “New” Member
Any employee hired by the City or any other CalPERS participating public
agency, on or after January 1, 2013; or any employee previously employed by
a CalPERS participating public agency who becomes employed by the City
after a break in service of greater than six (6) months; or any employee who is
ineligible for reciprocity with another California public retirement system.
Retirement formulas and calculations are based upon a combination of the
employee’s age, years of service, and annual pensionable compensation. Plans for
both “classic” and “new” members use a three (3) year highest average, with
calculations as set forth and administered by CalPERS.
Memorandum of Understanding — SEIU Local 721
— 44 —
21.1.3 Retirement Formula for “Classic” Members
The City contracts with CalPERS for a “2% @ 55 full formula” plan. There is
no cap on annual salary that can be used to calculate final compensation.
21.1.4 Retirement Formula for “New” Members
PEPRA mandates a “2% @ 62” plan. There is a pensionable compensation cap
on annual salary used to calculate final compensation.
The rate of contributions by both the City and each individual employee is based
upon applicable law and MOU provisions.
21.1.5 Contributions for “Classic” Members
21.1.5.1 For employees hired on or before June 30, 2016:
Each employee shall continue to pay seven percent (7%) of
the “employer” contribution. Unless required by law, or
mutual agreement by the parties, each employee shall not
pay more than seven percent (7%) in total contributions.
The City shall continue to pay one hundred percent (100%)
of the “employee” member contribution, known as an
Employer Paid Member Contribution (EPMC), and the
remaining portion of the “employer” contribution and
costs.
21.1.5.2 For employees hired on or after July 1, 2016:
Each employee shall participate in equal sharing of normal
cost with the City. Each employee will pay up to fifty
percent (50%) of the total normal cost of their pension
benefit, as determined by CalPERS each year, but not to
exceed an eight percent (8%) contribution rate for
miscellaneous plan members.
21.1.6 Contributions for “New” Members
Due to PEPRA, all employees must participate in equal sharing of normal
cost with the City. Both the City and the employee will pay fifty percent
(50%) of the normal costs, as determined by CalPERS each year.
July 1, 2018 through June 30, 2020
— 45 —
21.1.7 Optional Benefits
21.1.7.1 The optional benefit of Two Year Additional Service Credit
shall be discretionary with Council in accordance with
Government Code §20903.
21.1.7.2 The City’s contract with the CalPERS includes the optional
benefit of Employer-paid Member Contribution in Base Pay
During the Final Compensation Period.
21.1.7.3 The City’s contract with CalPERS includes the optional
benefit of Service Credit for Unused Sick Leave.
21.1.7.4 CalPERS Service Credit for Military Service:
The CalPERS Military Service Credit Purchase Assistance
Plan described below shall be made available to full time
regular employees who have completed their initial
probation period with the City.
The City’s contract with CalPERS includes the provisions of
§21024, Military Service Credit as Public Service. Accordingly,
eligible employees with qualifying military service can
contact CalPERS and arrange to be billed for the service
credit. The City shall reimburse the employee for twenty
five percent (25%) of the amount of the bill. Eligibility for
the twenty five percent (25%) reimbursement is limited to
employees who were on the payroll on July 1, 1995.
If desired, the employee may apply for a loan from the City
for the remaining seventy five percent (75%). The employee
shall apply for the loan on a City provided loan application.
If the employee qualifies, the City will fund the loan on an
interest free basis. Loan payments must be by payroll
deduction. Each loan payment period shall not exceed six
(6) years. The City may require collateral.
Any remaining loan balance must be paid in full at the time
of separation of employment. Payment will be made
directly and/or by deduction from the last paycheck. In the
event an outstanding balance remains, the employee is
Memorandum of Understanding — SEIU Local 721
— 46 —
responsible for making payment arrangements. The failure
to make full payment will obligate the employee to pay the
City’s attorney’s fees in any restitution process.
21.1.7.5 The City shall maintain the increased level of the 1959
Survivor Benefit.
21.1.7.6 The City’s contract with CalPERS provides the minimum
Annual Cost-of-Living Allowance (Government Code §21335)
of two percent (2%).
21.2 Public Agency Retirement System (PARS)
Effective July 1, 2006 the retirement formula will be adjusted to reflect an additional
one half percent (0.5%) to the current formula of two percent (2.0%) per year of
service at 55 years of age, This enhancement will provide for a retirement formula of
two and a half percent (2.5%) per year of service for anyone retiring at 55 years of
age or older. All prior years of service will count toward the computation.
Employees will contribute four percent (4.0%) toward the cost of this program with
the City contributing an additional one percent (1.0%). This additional benefit will
be provided through the Public Agency Retirement System (PARS).
21.2.1 State law has eliminated this benefit provided by PARS for new
employees hired on or after January 1, 2013, and limited this benefit
for existing City of Azusa employees hired prior to January 1, 2013,
who become SEIU represented employees.
21.3 Retiree Health Benefits
21.3.1 City Paid Medical Plans
For employees hired on or prior to June 30, 2019:
Beginning with the first month after retirement, for employees who had at
least twenty (20) years of service with the City of Azusa, and who enroll or
continue in the City’s health insurance program, the City will reimburse
monthly to the employee the amount of one-half (50%) of the premiums for
such health insurance, regardless of how many family members are enrolled.
July 1, 2018 through June 30, 2020
— 47 —
In the event the employee is single or widowed, and has no dependents, the
City’s contribution shall be equal to one hundred percent (100%) of such
premium.
In the event the employee passes away and is survived by an eligible spouse,
the benefit shall continue. But, if the employee passes away and has no
surviving spouse the benefit shall not carryover to the surviving dependents.
This plan shall remain in effect until the retiree, or eligible spouse passes
away, whichever occurs later, at which time the benefit shall terminate. Once
an individual has qualified for this provision, they shall retain this eligibility.
The minimum employer contribution (MEC) that the City pays directly to
CalPERS shall be considered to be part of the portion paid by the City.
21.3.2 Health Reimbursement Arrangement Accounts
For employees hired on or after July 1, 2019:
Effective July 1, 2019, upon hire the City shall establish a Health
Reimbursement Arrangement (HRA) account on behalf of each individual
employee for the reimbursement of medical premiums and IRS approved
medical expenses during retirement. The HRA shall be selected by the City.
21.3.2.1 Initial Contribution
The City shall deposit an initial contribution of two thousand dollars
($2,000.00) into the employee’s HRA within the first month of hire.
21.3.2.2 Annual Contributions
The City shall make additional contributions to each employee’s
HRA in the second pay period in July of each year, based on the
following schedule of continuous years of service:
Years of Service Amount of Annual Deposit
One (1)* - five (5) One thousand dollars ($1,000)
Six (6) - ten (10) Two thousand dollars ($2,000)
Memorandum of Understanding — SEIU Local 721
— 48 —
Eleven (11) or more Three thousand dollars ($3,000)
*The first year’s contribution shall be prorated in accordance with the
anniversary date of the employee’s date of hire.
The City shall continue to make the annual deposits, according to
this schedule, on behalf of each employee until the employee’s death,
separation from service, or retirement, whichever occurs first.
21.3.2.3 Vesting Requirements
Each employee is required to complete five (5) consecutive years of
service to be one hundred percent (100%) vested in their HRA.
An employee who is not vested at the time of separation from service
or retirement shall forfeit their unvested funds.
Once vested, an employee shall maintain their rights to all funds in
their HRA, except in the event of the death of an employee prior to
separation from service or retirement, any funds in the HRA shall be
forfeited.
21.3.2.4 Enrollment in City Health Plan
In the event an employee retires from City service and enrolls or
continues in the City’s health insurance program through CalPERS,
the City shall pay any required MEC directly to CalPERS.
No funds shall be deducted from an employee’s HRA to pay the
City’s MEC to CalPERS.
22. TUITION REIMBURSEMENT
22.1 Objective
The tuition reimbursement program is designed to encourage employees to continue
their self-development by enrolling in approved classroom courses which will:
22.1.1 Educate them in new concepts and methods in their occupational
field and prepare them to meet the changing demands of their job.
July 1, 2018 through June 30, 2020
— 49 —
22.1.2 Help prepare them for advancement to positions of greater
responsibility in the City of Azusa.
22.2 Eligibility
22.2.1 All regularly appointed employees are eligible to receive tuition
reimbursement. Courses must commence after appointment and be
in excess of the educational standards for the position. An example of
this would be job-related college or university courses when the
specification for the classification calls for high school graduation.
22.2.2 Courses must be (except where noted below in Sections 22.3.3 and
22.3.4) traditional classroom courses taken at colleges or universities
and approved by the Western Association of Schools and Colleges.
Distance learning classes offered by such colleges and universities
shall be covered by this provision. Credits given for non-classroom
assignments such as life experience, military training, and
professional training are not reimbursable.
22.2.3 Course work must be related to the employee’s current occupation or
to a City classification to which the employee may reasonably expect
promotion within the next five (5) years.
22.3 Courses may be eligible if they:
22.3.1 Are above the educational requirements of the position as noted in
the position specification and are not taken to acquire skills,
knowledge and abilities which the employee was deemed to have
when appointed the position.
22.3.2 Do not duplicate training which the employee has already had or
which is to be provided in-house.
22.3.3 Do not duplicate previously taken courses unless special approval
has been granted by the department head and the Human Resources
Division.
22.3.4 Are required for the completion of the pre-approved job-related
major. An example would be general education or elective
requirements for the major as stated in the school catalog. Remedial
Memorandum of Understanding — SEIU Local 721
— 50 —
courses or those taken as required for a non-approved major shall
not be eligible.
22.3.5 Include completed engineering review courses taken at accredited
institutions for which an academic grade or units of academic credit
are not given. These courses must prepare candidates for a
certificate, license or registration issued by the California Board of
Registration for Professional Engineers. The employee must receive
the certificate or license from this Board to be eligible for
reimbursement, which will be granted for a maximum of two (2)
courses per certificate, license or registration.
22.3.6 Lead to a City-approved certificate, license or registration.
Reimbursement may be made for any examination fees required to
successfully obtain the certificate, license or registration.
Reimbursement for eligible expenses will be made after obtaining the
license, certificate or registration.
22.3.7 Are not taken on City time and must be certified that they are taken
on the employee’s off-duty time.
22.3.8 Have been approved by the Department Head and the City Manager
or their designee before commencement of the class.
22.4 Reimbursement
22.4.1 The City shall reimburse employees for tuition, registration fees and
texts required for the eligible courses. Expenses for parking, travel,
meals, processing fees, transcript fees, materials and any other costs
are not reimbursable.
22.4.2 Employees shall be reimbursed up to the dollar amount charged for
the same number of units per term by California State University
system.
22.4.3 In order to be reviewed, each application must state exactly which
units or credits the employee is applying for and whether the courses
submitted are core courses or recommended electives for the
approved major.
July 1, 2018 through June 30, 2020
— 51 —
22.4.4 Reimbursement shall be made upon completion of the course with a
minimum final grade of “C” or its equivalent (i.e., a pass in a
pass/fail course will be considered equivalent to a “C”). No
reimbursement shall be made for audited or incomplete courses.
22.4.5 Employees must submit from the attendant institution an original
certification of fees paid and grade achieved in order to have his or
her application considered for reimbursement. These documents
must accompany the reimbursement application form in order to be
processed.
22.4.6 Application for reimbursement must be submitted within three (3)
months of the completion of the approved course in order to be
considered for reimbursement.
22.4.7 Upon termination from employment, employees shall be required to
reimburse the City for any funds received under this program for
courses completed during the last twenty four (24) months of
employment. This payback provision does not apply to employees
laid off by the City or who separate as a result of a City/departmental
reorganization.
23. FLEXIBLE STAFFING POSITIONS
The following classifications shall be incorporated into a “Flexible Staffing” pattern.
Facilities Maintenance Worker I, II, III
Street Maintenance Worker I, II, III
The first level classifications are apprentice classifications. Employees in these
classifications shall be promoted (on probationary status) to the second level
classifications, respectively, upon successful completion of one (1) year of service at the
fifth (5th) salary step.
If the series includes a third level, the second level classifications shall be promoted (on
probationary status) to the third level classifications, respectively, upon successful
completion of one (1) year of service at the fifth (5th) salary step and when, in the
opinion of the Department Head, the employee has retained the practical knowledge of
the performance of all facets of the duties required of the third level classification.
Memorandum of Understanding — SEIU Local 721
— 52 —
In the event that the employee is not promoted as described above, they shall be
presented in writing the reason(s) for the denial of the promotion, and a list of the
area(s) of which the employee has insufficient knowledge to achieve the promotion.
Nothing in this article shall preclude management from promoting qualified employees
to a higher step/classification in their flex series.
24. LABOR-MANAGEMENT COMMITTEE
The parties shall establish an ad hoc Labor-Management Committee (LMC) consisting
of management representatives, employee representatives, and union representatives to
discuss labor related issues as they arise. The parties understand and agree the objective
of the LMC is to have a forum for the informal discussion of labor-related issues.
25. LAY OFF
The City agrees that in the event employees represented by the Union are laid off from
their employment, a minimum of forty-five (45) calendar days’ notice will be given to
each individual affected employee. Such notice shall be in writing and signed by an
appropriate management employee.
July 1, 2018 through June 30, 2020
— 53 —
MEMORANDUM OF UNDERSTANDING SEIU LOCAL 721 JULY 1, 2018 THROUGH JUNE 30, 2020
SEIU LOCAL 721
Wendy Thomas, SEIU 721 Chief Negotiator
Chris Gutierrez, Employee Representative
David Ochoa, Employee Representative
CITY OF AZUSA
Sergio Gonzalez, City Manager
Tanya Bragg, Director of HR & Risk Management
Talika Johnson, Director of Finance
Memorandum of Understanding — SEIU Local 721
— 54 —
EXECUTION OF THE NEW AGREEMENT
This MOU has been ratified on May 22, 2019 by a simple majority vote of unit
employees who are in classifications represented by SEIU Local 721 as set forth in this
agreement.
This MOU was then approved by a majority vote of the City Council of the City of
Azusa on June 3, 2019 under Agenda Item# ____________.
Following its execution by the parties hereto, the City shall implement its terms and
conditions by appropriate lawful action.
In witness whereof, the parties hereto have cause for this agreement to be executed this
______ day of _____________ 2019.
SEIU Local 721 City of Azusa, California
Wendy Thomas
Chief Negotiator
Tanya Bragg
Director of HR & Risk Management
July 1, 2018 through June 30, 2020
— 55 —
INDEX
Acting Pay, 17
Additional Compensation/Premium
Pay, 17
Automatic Payroll Deposit, 16
Bereavement Leave, 30
Bilingual Pay, 18
Break Periods, 15
“Cadillac Tax”, 30
Callback, 18
CalPERS, 43
Certification and License, 41
Certification Incentive Pay, 41
City Rights, 12
Conformance with Rules, 14
Management Rights, 12
Meet and Confer, 14
Communications Access, 9
Compensatory Time, 21
Contract Negotiations, 11
Contracting Out, 12
Damage to Personal Effects, 26
Deferred Compensation Plan, 19
Double Time, 19, 22
Employee Assistance Plan, 26
Employee Rights, 5
Anti-discrimination, 5
Protection of Rights, 5
Equipment Allowance, 20
Execution of New Agreement, 54
Flexible Benefit Plan, 26
Eligibility, 28
FBP Contributions, 27
Medical Waiver Option, 29
Flexible Staffing Positions, 51
Floating Holidays, 32
Health Insurance During Retirement, 46
Holiday Double Time, 22
Holidays, 31
Implementation, 5
Industrial Leave, 33
Labor-Management Committee, 52
Lay off, 52
Leave Types, 30
Life Insurance, 42
Long Term Disability Insurance, 42
Longevity Premium, 20
Lump Sum Payments, 16
Maintenance of Existing Benefits, 14
Management Rights, 12
Meal Breaks, 15
Medical Certification Program, 36
Medical Waiver Option, 29
Membership Dues, 6, 7
Night Shift Differential, 23
Overtime, 21
Overtime Meal Stipend, 22
Paint Crew, 23
“Personal Business” Leave, 35
Premium Pay, 17
Rest Breaks, 15
Retiree Health Benefits, 46
Retirement, 43
CalPERS, 43
Contributions, 44
Health Insurance During Retirement,
46
Optional Benefits, 45
PARS, 46
Retirement Formulas, 44
Salary, 16
Salary Increases, 16
Salary Schedules, 58
Savings Clause, 5
Separability, 14
Sick Leave, 35
“Personal Business” Leave, 35
Memorandum of Understanding — SEIU Local 721
— 56 —
Accrual, 37
Conversion Deadline, 39
Conversion to Cash upon Retirement
or Separation, 39
Conversion to Service Credit upon
Retirement, 39
Evaluation of Sick Leave Usage, 36
Maximum Accumulation, 37
Medical Certification Program, 36
One-fourth Conversion, 38
One-third Conversion, 38
Probationary Employee Sick Leave
Usage, 38
Reasons for Use of Sick Leave, 35
Sick Leave During Vacation, 38
Usage for Time Reporting, 37
Verification, 37
Special Pay Plan/Excess Vacation
Annuity, 41
Standby, 24
Term of Memorandum of
Understanding, 4
Timekeeping Interval, 15
Total Compensation, 5
Tuition Reimbursement, 48
Eligibility, 48
Eligible Courses, 49
Objective, 48
Reimbursement, 50
Uniform Allowance, 25
Union Release Time, 10
Union Rights, 6
Committee on Political Education, 7
Communications Access, 9
Contract Negotiations, 11
Indemnification, 6
Maintenance of Membership, 7
Membership Dues, 7
Payroll Deductions, 6
Reporting Requirements, 8
Union Release Time, 10
Union Steward Program, 9
Use of City Facilities and Equipment,
9
Visits by Union Representatives, 9
Union Stewards, 9
Vacation, 40
Accrual, 40
Cash-in Policy, 40
Maximum Accumulation, 40
Required Usage, 40
Special Pay Plan/Excess Vacation
Annuity, 41
Vision Insurance, 29
Visits by Union Representatives, 9
“Wash-Up” Time, 15
Weekend Assignment, 25
Workday, 15
Workweek, 15
Workweek and Timekeeping Interval,
15
Memorandum of Understanding — SEIU Local 721
— 58 —
EXHIBIT A
SEIU Salary Schedules
Effective July 1, 2017
Classification Range Step 1 Step 2 Step 3 Step 4 Step 5
FACILITIES CREW SUPERVISOR 8184 4,931.88 5,178.47 5,437.40 5,709.27 5,994.73
FACILITIES MAINT SUPERVISOR 8204 5,809.52 6,100.00 6,405.00 6,725.25 7,061.51
FACILITIES MAINT WORKER I 8153 3,674.14 3,857.85 4,050.74 4,253.28 4,465.94
FACILITIES MAINT WORKER II 8163 4,038.33 4,240.25 4,452.26 4,674.87 4,908.62
FACILITIES MAINT WORKER III 8174 4,483.08 4,707.23 4,942.60 5,189.73 5,449.21
PUBLIC WORKS INSPECTOR 8203 5,302.79 5,567.93 5,846.33 6,138.64 6,445.57
PUBLIC WORKS SUPERVISOR 8204 5,809.52 6,100.00 6,405.00 6,725.25 7,061.51
STREET MAINT CREW SUPERVISOR 8184 4,931.88 5,178.47 5,437.40 5,709.27 5,994.73
STREET MAINT WORKER I 8153 3,674.14 3,857.85 4,050.74 4,253.28 4,465.94
STREET MAINT WORKER II 8163 4,038.33 4,240.25 4,452.26 4,674.87 4,908.62
STREET MAINT WORKER III 8174 4,483.08 4,707.23 4,942.60 5,189.73 5,449.21