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HomeMy WebLinkAboutE-22 Staff Report - Restated MOUs for SEIU CONSENT ITEM E-22 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: JULY 20, 2020 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 Talika Johnson, Director of Administrative Services, and Kelsey Kenz, Human Resources Manager, 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, 2024. RECOMMENDATION: Staff recommends 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, Local 721. ANALYSIS: The MOU between the City of Azusa and SEIU expired on June 30, 2020. Negotiations with SEIU commended on May 2020. Sessions consisted of several discussions of the City’s current financial position, future projections, and caution due to growing concern related to the Coronavirus (COVID-19) Pandemic and potential impacts to the City’s revenues during the pandemic. Other discussions consisted of the desire to transfer parks employees into the SEIU bargaining unit. This transfer was done based on the City’s Employer Employee Relations Resolution No. 10-C93. The City’s current reserve position is strong, and although some level of expectation of reduced revenues exists over the next couple of years while recovering from the pandemic, the City has taken APPROVED CITY COUNCIL 7/20/2020 SEIU MOU July 1, 2020 – June 30, 2024 July 20, 2020 Page 2 many positive steps to create operational efficiencies and reduce costs, and to increase its revenue base by renegotiating contracts and passing special revenue measures. Therefore, Staff recommends the Council consider the amended and restated MOU as proposed. Amongst several mutually agreed upon concessions, the provisions of the proposed MOU include the following compensation and benefit adjustments: 1. Contract Term: July 1, 2020 through June 30, 2024. 2. Cost of Living Adjustment: Fiscal Year 2020-2021: $500.00 single lump sum payment Fiscal Year 2021-2022: 4% Fiscal Year 2022-2023: 3% Fiscal Year 2023-2024: 3% 3. Callback Provisions: Addition of one (1) hour to call back provisions when employees are out on an original call back and receive a secondary assignment. This addition will ensure employees are compensated appropriately when called out to multiple assignments. 4. Deferred Compensation: Increase City’s contribution from $90 to $100 per month 5. Equipment Allowance: Increase the current yearly allowance of $300 to $350 annually. 6. Longevity Premium: Increase Longevity Pay as follows: 10 years - $85 to $100 15 years - $175 to $200 20 years - $250 to $300 7. Overtime Meal Period: Increased from $16 to $17 8. Premium Comp Time Cap: Eliminate the premium comp time cap of 30 hours. It should be noted the total cap on comp time of 240 hours remains in effect. 9. Flexible Benefit Plan: Increase to max cap for FBP for all members: Effective upon ratification of MOU, FBP will increase to $1,500/mo. Effective January 1, 2021, employees whose premiums exceed their FBP contribution amount can elect to opt out of City paid deferred comp during open enrollment period and place what would otherwise be contributed to deferred comp to FBP contribution. SEIU MOU July 1, 2020 – June 30, 2024 July 20, 2020 Page 3 10. Certification Pay: Increase from $150 to $200 per month Other substantive language added to the MOU, include, but not limited to: applying a fairness agreement for any Cost of Living Adjustments (COLA) increases issued in FY2020/21, adding a reopener option to discuss the Flexible Benefit Plan (FBP) in Fiscal Year 2023/24, clarifying the layoff process with a sunset on the clarification, updating language to be consistent with other MOU agreements and state/federal laws. The attached MOU is in draft format pending non-substantive language clean-up throughout MOU. FISCAL IMPACT: The cost of the aforementioned SEIU benefit adjustments impacting 20 employees is estimated at $319,490 for the four-year term of this contract, of which approximately 41% (or $130,990) is allocated to the General Fund. Of the total estimated contract cost of $319,490, a portion of that total is cost, $10,000, is for a one-time only payment. The first year cost has already been included in the Fiscal Year 2020/21 Adopted Budget, and subsequent year’s costs will be programmed in the annual budgets as applicable. Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachment: 1) Amended and Restated Memorandum of Understanding between the City of Azusa and the Service Employee International Association, Local 721 — i — MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AZUSA AND THE SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721 JULY 1, 2020 THROUGH JUNE 30, 2024 DRAFT Attachment 1 July 1, 2020 through June 30, 2024 — 1 — TABLE OF CONTENTS (to be updated with Final Version) 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 ........................... Error! Bookmark not defined. 6.3 Reporting Requirements ..................................................................................... 7 6.4 Visits by Union Representatives ........................................................................ 8 6.5 Use of City Facilities and Equipment ................................................................ 8 6.6 Communication Access ....................................................................................... 9 6.7 Union Steward Program ..................................................................................... 9 6.8 Union Release Time ........................................................................................... 10 6.9 Contract Negotiations ....................................................................................... 10 6.10 New Employee Orientations ............................................................................ 10 7. CITY RIGHTS ................................................................................................................ 11 7.1 Management Rights ........................................................................................... 11 7.2 Conformance with Rules ................................................................................... 13 7.3 Meet and Confer ................................................................................................. 14 8. SEPARABILITY............................................................................................................. 14 9. MAINTENANCE OF EXISTING BENEFITS ............................................................ 14 10. WORKWEEK AND TIMEKEEPING INTERVAL ................................................... 14 10.1 Workweek ........................................................................................................... 14 10.2 Workday .............................................................................................................. 15 10.3 Timekeeping Interval ........................................................................................ 15 11. SALARY ......................................................................................................................... 15 11.1 Salary Increases .................................................................................................. 15 11.2 Automatic Payroll Deposit ............................................................................... 16 11.3 Single Lump Sum Payments ........................... Error! Bookmark not defined. 12. ADDITIONAL COMPENSATION AND PREMIUM PAY .................................... 16 12.1 Working Out of Classification .......................................................................... 16 12.2 Bilingual Pay ....................................................................................................... 17 12.3 Callback ............................................................................................................... 17 Memorandum of Understanding — SEIU Local 721 — 2 — 12.4 Deferred Compensation Plan ........................................................................... 19 12.5 Equipment Allowance ....................................................................................... 19 12.6 Longevity Premium ........................................................................................... 20 12.7 Overtime and Compensatory Time ................................................................. 20 12.8 Night Shift Differential ...................................................................................... 23 12.9 Paint Crew ........................................................................................................... 23 12.10 Standby ................................................................................................................ 23 12.11 Uniform Allowance ........................................................................................... 24 12.12 Weekend Assignment ....................................................................................... 24 13. FAIRNESS AGREEMENT ........................................................................................... 24 14. DAMAGE TO PERSONAL EFFECTS........................................................................ 25 15. EMPLOYEE ASSISTANCE PLAN ............................................................................. 25 16. FLEXIBLE BENEFIT PLAN ......................................................................................... 25 16.1 Definition............................................................................................................. 25 16.2 FBP Contributions .............................................................................................. 26 16.3 Eligibility ............................................................................................................. 27 16.4 Termination ......................................................................................................... 28 16.5 Medical Waiver Option ..................................................................................... 28 16.6 Qualified Benefits ............................................................................................... 29 16.7 Vision Insurance ................................................................................................. 29 16.8 Dental Insurance ................................................................................................ 29 16.9 “Cadillac Tax” .................................................................................................... 29 17. LEAVE TYPES ............................................................................................................... 30 17.1 Bereavement Leave ............................................................................................ 30 17.2 Holidays .............................................................................................................. 30 17.3 Industrial Leave .................................................................................................. 32 17.4 Sick Leave ............................................................................................................ 34 17.5 Vacation ............................................................................................................... 39 18. CERTIFICATION AND LICENSE ............................................................................. 40 18.1 City Obligation of Costs .................................................................................... 40 18.2 Certification Incentive Pay ............................................................................... 40 19. LIFE INSURANCE ....................................................................................................... 41 20. LONG TERM DISABILITY INSURANCE ................................................................ 41 21. RETIREMENT ............................................................................................................... 42 21.1 California Public Employees’ Retirement System ......................................... 42 21.2 Public Agency Retirement System (PARS) .................................................... 45 21.3 Retiree Health Benefits ...................................................................................... 45 22. TUITION REIMBURSEMENT .................................................................................... 47 July 1, 2020 through June 30, 2024 — 3 — 22.1 Objective .............................................................................................................. 47 22.2 Eligibility ............................................................................................................. 48 22.3 Courses may be eligible if they: ....................................................................... 48 22.4 Reimbursement .................................................................................................. 49 23. FLEXIBLE STAFFING POSITIONS ........................................................................... 50 24. LABOR-MANAGEMENT COMMITTEE ................................................................. 51 25. LAY OFF ........................................................................................................................ 51 EXECUTION OF THE NEW AGREEMENT .......................................................................... 53 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, 2020 THROUGH JUNE 30, 2024 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, 2020 and shall continue in full force and effect until June 30, 2024. July 1, 2020 through June 30, 2024 — 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 Each pay period, the Union shall provide the employer with an “authorized deduction report” which includes bargaining unit members who have authorized the deduction of Union dues, COPE and other deductions and the deduction amounts. 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 ten (10) business days following their deduction. To the extent on file with Human Resources and/or Payroll Staff, 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, hire date, job classification, employment status (ex.: July 1, 2020 through June 30, 2024 — 7 — active, on leave of absence, etc.), work status (ex: full-time, part-time, hourly, seasonal, etc.), home address, home telephone number (if applicable), personal e-mail (if applicable), work address, work phone, work e-mail, hourly rate of pay, total hours worked in the pay period, 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. 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 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 Memorandum of Understanding — SEIU Local 721 — 8 —  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 The City agrees to provide such information to the Union in a usable electronic format (preferably Excel). 6.3 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. 6.4 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 Director of Administrative Services, appropriate Department Head, or designee. The date, time, July 1, 2020 through June 30, 2024 — 9 — location, and intervals of such meetings shall be mutually agreed upon by the parties. 6.5 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. 6.6 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 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. Memorandum of Understanding — SEIU Local 721 — 10 — 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. 6.7 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. 6.8 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. 6.9 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 July 1, 2020 through June 30, 2024 — 11 — 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  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. Memorandum of Understanding — SEIU Local 721 — 12 — 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. 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). July 1, 2020 through June 30, 2024 — 13 — 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. 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. Memorandum of Understanding — SEIU Local 721 — 14 — 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. 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. July 1, 2020 through June 30, 2024 — 15 — 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 shall be rounded down, and periods of time of eight (8) minutes or more shall be rounded up. 11. SALARY 11.1 Salary Increases Effective July 1, 2020 each employee covered by this MOU as of July 1, 2020, will receive a one-time lump sum stipend of $500.00. This one-time lump sum stipend will cover July 1, 2020 through June 30, 2021 of this contract. Effective July 1, 2021, the base salary range of each classification in the bargaining unit shall be increased by four percent (4%). Effective July 1, 2022 the base salary range of each classification in the bargaining unit shall be increased by three percent (3%). Memorandum of Understanding — SEIU Local 721 — 16 — Effective July 1, 2023 the base salary range of each classification in the bargaining unit shall be increased by three percent (3%). 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. 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. July 1, 2020 through June 30, 2024 — 17 — 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. 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 that 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. While working on the initial callback assignment, should an employee receive an additional assignment, he/she shall receive a minimum of one (1) additional hour per additional assignment. For example, if an employee is out on their first callback completing all tasks of that original callback, and they receive another assignment prior to completing the initial callback assignment, he/she is eligible for a minimum of four hours of callback compensation. Should they receive Memorandum of Understanding — SEIU Local 721 — 18 — another assignment while working on the additional assignment, they would receive another minimum of one (1) additional hour. 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. 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. July 1, 2020 through June 30, 2024 — 19 —  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 ninety dollars ($90.00) per month in deferred compensation to each employee. Effective July 1, 2020, the City shall provide one hundred dollars ($100.00) per month in deferred compensation to each employee. 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 shall increase the personal equipment allowance to three hundred dollars ($300.00) per fiscal year. Effective July 1, 2020, the City shall increase the personal equipment allowance to three hundred and fifty dollars ($350.00) 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. Memorandum of Understanding — SEIU Local 721 — 20 — 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 Effective July 1, 2020, the monthly longevity pay for employees shall be in accordance with the following schedule: 10 years = $100 15 years = $200 20 years = $300 Notwithstanding the foregoing, employees currently receiving a higher dollar amount of longevity pay than the amounts provided for above shall continue to receive the higher dollar amount until eligible for an increase based on the schedule set forth above. Years of service will include all time employed full-time by the City. 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 July 1, 2020 through June 30, 2024 — 21 — 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. 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 ($16.00) for each such period. Effective July 1, 2020, or the first payroll following ratification of this contract, which date is greater, the meal stipend shall increase to seventeen dollars ($17.00). 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 Memorandum of Understanding — SEIU Local 721 — 22 — receive a meal stipend of fifteen dollars ($16.00) for each such four (4) hour period. Effective July 1, 2020, or the first payroll following ratification of this contract, which date is greater, the meal stipend shall increase to seventeen dollars ($17.00). 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) hours, or they shall receive a meal stipend of fifteen dollars ($16.00) for each such four (4) hour period. Effective July 1, 2020, or the first payroll following ratification of this contract, which date is greater, the meal stipend shall increase to seventeen dollars ($17.00). 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). Effective July 1, 2020, or the first payroll following ratification of this contract, which date is greater, the meal stipend shall increase to thirty dollars ($17.00). 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. July 1, 2020 through June 30, 2024 — 23 — 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. 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. Memorandum of Understanding — SEIU Local 721 — 24 — 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. 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 bargaining unit(s) a higher amount or higher value of a benefit (from that which was not already in effect or negotiated as of June 30, 2020) than that which was given to employees in this MOU, employees in this unit shall be given the same higher amounts or higher value of benefits, for the following provisions and terms, as those given to the other bargaining unit(s): July 1, 2020 through June 30, 2024 — 25 —  Salary increases - for the period of July 1, 2020 through June 30, 2021, if City grants any other bargaining unit(s) a salary increase over than that stated for the same period in Section 11.1, the City will grant employee(s) in this unit the same salary increase for the period of July 1, 2020 through June 30, 2021 with the understanding that any salary increase given will be deducted from the salary increase to be effective July 1, 2021 as stated in Section 11.1. The total salary increase for this bargaining unit will not exceed the sum total salary increase(s) stated in Section 11.1 of this contract for the entire term of this contract.  Flexible benefit plan (FBP) contributions – for the entire term of this contract, if the City grants any other bargaining unit(s) a higher FBP contribution over than what is already in effect or negotiated as of June 30, 2020 and in prior MOU’S, the City will grant employee(s) in this unit the same higher amount to be effective on the same date(s) given to other bargaining unit(s). 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. Memorandum of Understanding — SEIU Local 721 — 26 — 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. 16.2 FBP Contributions 16.2.1 Amount of Monthly FBP Contribution 16.2.1.3 For all employees: Effective July 1, 2020, the City will make an FBP contribution of one thousand, five hundred dollars ($1,500.00) per month for each employee. Effective January 1, 2021 and each year during the open enrollment period employees whose premiums exceed their FBP contribution amount have the option to redirect the City paid deferred compensation contribution of $100.00 and have that amount added to their FBP (see 16.2.3.3). The City is agreeable to a reopener to discuss a potential increase to the FBP in the final year of this MOU. The bargaining group must approach the Human Resources Division to request a reopener if it is desired at that time. 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: Effective January 1, 2020, in the event there remains any portion of the FBP contribution after all premiums and/or expenses for qualified benefits selected by the employee July 1, 2020 through June 30, 2024 — 27 — 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: 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. 16.2.3.3 For all employees in this bargaining unit: Effective January 1, 2021, employees whose premiums exceed the FBP contribution amount can elect to redirect any portion of Employer Paid Deferred Compensation Contribution (EPDCC) as stated in Section 12.4.1 of this contract, and place what would otherwise be contributed to deferred compensation by the City to the FBP contribution. The EPDCC may not be redirected to be paid out in cash. Employee(s) must request this option during the open enrollment period each year. For example, an employee who has qualified benefit premiums of $1,515, may choose to redirect $15 of the EPDCC and add to his/her $1,500 FBP contribution for a total FBP contribution of $1515 and the remaining amount of $85 ($100 - $15) will continue to be applied to the deferred compensation plan. 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 Memorandum of Understanding — SEIU Local 721 — 28 — (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 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 Director of Administrative Services. 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 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. July 1, 2020 through June 30, 2024 — 29 — 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. 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. 16.8 Dental Insurance The City shall continue to provide a dental insurance plan for employees and their eligible family members. 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. 16.10 FBP Contribution Re-Opener Clause The City agrees, upon request by this bargaining unit to the Human Resources Division, the parties shall re-open negotiations on the issue of the City paid FBP contribution for the effective period not earlier than July 1, 2023. It is expressly understood by both parties that this re-opener does not obligate the unit to anything Memorandum of Understanding — SEIU Local 721 — 30 — 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, grandchildren 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 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: July 1, 2020 through June 30, 2024 — 31 — Holiday Schedule Month FY2020/2021 FY2021/2022 FY2022/2023 FY2023/2024 Independence Day July 4th July 6 5* 4** 4* Labor Day 1st Monday in September Sept 7* 6* 5* 4* Columbus Day 2nd Monday in October Oct 12* 11* 10* 9* Veteran’s Day November 11th Nov 11* 11 10 13 Thanksgiving Day 4th Thursday in November Nov 26* 25* 24* 23 Christmas Day December 25th Dec 24 27 26 25 New Year’s Day January 1st Jan 0Dec.31 3 2* 1* Martin Luther King Day 3rd Monday in January Jan 18* 17* 16* 15* President’s Day 3rd Monday in February Feb 15* 21* 20* 19* Memorial Day Last Monday in May May 31* 30* 29* 27* * = 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. Memorandum of Understanding — SEIU Local 721 — 32 — 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 July 1, 2020 through June 30, 2024 — 33 — 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.) Memorandum of Understanding — SEIU Local 721 — 34 — 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 Director of Administrative Services. 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) fiscal year wherein the City will not question usage. Employees must provide advance notice for such designation, sometimes July 1, 2020 through June 30, 2024 — 35 — 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) Memorandum of Understanding — SEIU Local 721 — 36 — 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. July 1, 2020 through June 30, 2024 — 37 — 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 calendar 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: Memorandum of Understanding — SEIU Local 721 — 38 — 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 calendar 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. July 1, 2020 through June 30, 2024 — 39 — 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 Memorandum of Understanding — SEIU Local 721 — 40 — 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 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: 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. Effective July 1, 2020 the certification incentive pay shall be paid at a flat rate of two hundred dollars ($200.00) per month per certification. 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 July 1, 2020 through June 30, 2024 — 41 — 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; 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. Memorandum of Understanding — SEIU Local 721 — 42 — 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. 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. July 1, 2020 through June 30, 2024 — 43 — 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. 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. Memorandum of Understanding — SEIU Local 721 — 44 — 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 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. July 1, 2020 through June 30, 2024 — 45 — 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. 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. Memorandum of Understanding — SEIU Local 721 — 46 — 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) 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. July 1, 2020 through June 30, 2024 — 47 — 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. 22.1.2 Help prepare them for advancement to positions of greater responsibility in the City of Azusa. Memorandum of Understanding — SEIU Local 721 — 48 — 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 courses or those taken as required for a non-approved major shall not be eligible. July 1, 2020 through June 30, 2024 — 49 — 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. 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. Memorandum of Understanding — SEIU Local 721 — 50 — 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 Park 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. 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. July 1, 2020 through June 30, 2024 — 51 — 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. Layoffs will be made on the basis of seniority (as defined by Section 13.2.6. of the City’s Civil Service Rules). Names of persons laid off shall be carried on a reemployment list for twelve (12) months. If the City restores the laid off position(s) within the twelve (12) months period, it shall first offer the position(s) to persons on the reemployment list before using any other selection method. The name of the individual re-appointed to a permanent position of the same class shall, upon reappointment, be removed from the list. An individual who declines reemployment shall be dropped from the list. This provision will sunset on December 31, 2021 and the City’s Civil Service Rules will apply. Memorandum of Understanding — SEIU Local 721 — 52 — MEMORANDUM OF UNDERSTANDING SEIU LOCAL 721 JULY 1, 2020 THROUGH JUNE 30, 2024 SEIU LOCAL 721 Steve Koffroth, SEIU 721 Chief Negotiator Jayson Tello, Employee Representative David Ochoa, Employee Representative CITY OF AZUSA Sergio Gonzalez, City Manager Talika M. Johnson, Director of Administrative Services Kelsey Kenz, Human Resources Manager July 1, 2020 through June 30, 2024 — 53 — 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 17, 2019 under Agenda Item# E-13. 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 17th day of June 2019. SEIU Local 721 City of Azusa, California Steve Koffroth Chief Negotiator Talika M. Johnson Director of Administrative Services Memorandum of Understanding — SEIU Local 721 — 54 — INDEX (to be updated with Final Version) 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 July 1, 2020 through June 30, 2024 — 55 — 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 — 56 — EXHIBIT A SEIU Salary Schedules Effective July 1, 2020 Classification Range Step 1 Step 2 Step 3 Step 4 Step 5 FACILITIES MAINT FOREMAN 8184 4,931.88 5,178.47 5,437.40 5,709.27 5,994.73 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 PARK MAINTENANCE WORKER I 4153 3,573.73 3,752.42 3,940.04 4,137.04 4,343.89 PARK MAINTENANCE WORKER II 4163 3,923.98 4,120.18 4,326.19 4,542.50 4,769.62 PARK MAINTENANCE WORKER III 4174 4,351.71 4,569.30 4,797.76 5,037.65 5,289.53 PARK MAINTENANCE CREW SUPERVISOR 4184 4,783.37 5,022.54 5,273.67 5,537.35 5,814.22 PARK MAINTENANCE SUPERVISOR 4196 5,361.39 5,629.46 5,910.93 6,206.48 6,516.80 July 1, 2020 through June 30, 2024 — 57 — EXHIBIT A SEIU Salary Schedules Effective July 1, 2021 Classification Range Step 1 Step 2 Step 3 Step 4 Step 5 FACILITIES MAINT FOREMAN 8184 5,129.16 5,385.61 5,654.89 5,937.64 6,234.52 PUBLIC WORKS INSPECTOR 8203 5,514.90 5,790.65 6,080.18 6,384.19 6,703.40 PUBLIC WORKS SUPERVISOR 8204 6,041.90 6,344.00 6,661.20 6,994.26 7,343.97 STREET MAINT CREW SUPERVISOR 8184 5,129.16 5,385.61 5,654.89 5,937.64 6,234.52 STREET MAINT WORKER I 8153 3,821.11 4,012.16 4,212.77 4,423.41 4,644.58 STREET MAINT WORKER II 8163 4,199.86 4,409.86 4,630.35 4,861.87 5,104.96 STREET MAINT WORKER III 8174 4,662.40 4,895.52 5,140.30 5,397.31 5,667.18 PARK MAINTENANCE WORKER I 4153 3,716.68 3,902.51 4,097.64 4,302.52 4,517.65 PARK MAINTENANCE WORKER II 4163 4,080.94 4,284.99 4,499.24 4,724.20 4,960.41 PARK MAINTENANCE WORKER III 4174 4,525.78 4,752.07 4,989.67 5,239.15 5,501.11 PARK MAINTENANCE CREW SUPERVISOR 4184 4,974.70 5,223.44 5,484.61 5,758.84 6,046.78 PARK MAINTENANCE SUPERVISOR 4196 5,575.85 5,854.64 6,147.37 6,454.74 6,777.48 Memorandum of Understanding — SEIU Local 721 — 58 — EXHIBIT A SEIU Salary Schedules Effective July 1, 2022 Classification Range Step 1 Step 2 Step 3 Step 4 Step 5 FACILITIES MAINT FOREMAN 8184 5,283.03 5,547.18 5,824.54 6,115.77 6,421.56 PUBLIC WORKS INSPECTOR 8203 5,680.35 5,964.37 6,262.58 6,575.71 6,904.50 PUBLIC WORKS SUPERVISOR 8204 6,223.16 6,534.32 6,861.03 7,204.08 7,564.29 STREET MAINT CREW SUPERVISOR 8184 5,283.03 5,547.18 5,824.54 6,115.77 6,421.56 STREET MAINT WORKER I 8153 3,935.74 4,132.53 4,339.15 4,556.11 4,783.92 STREET MAINT WORKER II 8163 4,325.86 4,542.15 4,769.26 5,007.72 5,258.11 STREET MAINT WORKER III 8174 4,802.28 5,042.39 5,294.51 5,559.23 5,837.20 PARK MAINTENANCE WORKER I 4153 3,828.18 4,019.59 4,220.57 4,431.60 4,653.18 PARK MAINTENANCE WORKER II 4163 4,203.37 4,413.54 4,634.21 4,865.92 5,109.22 PARK MAINTENANCE WORKER III 4174 4,661.55 4,894.63 5,139.36 5,396.33 5,666.15 PARK MAINTENANCE CREW SUPERVISOR 4184 5,123.95 5,380.14 5,649.15 5,931.61 6,228.19 PARK MAINTENANCE SUPERVISOR 4196 5,743.12 6,030.28 6,331.79 6,648.38 6,980.80 July 1, 2020 through June 30, 2024 — 59 — EXHIBIT A SEIU Salary Schedules Effective July 1, 2023 Classification Range Step 1 Step 2 Step 3 Step 4 Step 5 FACILITIES MAINT FOREMAN 8184 5,441.52 5,713.60 5,999.28 6,299.24 6,614.20 PUBLIC WORKS INSPECTOR 8203 5,850.76 6,143.30 6,450.46 6,772.99 7,111.63 PUBLIC WORKS SUPERVISOR 8204 6,409.85 6,730.35 7,066.86 7,420.21 7,791.22 STREET MAINT CREW SUPERVISOR 8184 5,441.52 5,713.60 5,999.28 6,299.24 6,614.20 STREET MAINT WORKER I 8153 4,053.81 4,256.50 4,469.33 4,692.79 4,927.43 STREET MAINT WORKER II 8163 4,455.63 4,678.42 4,912.34 5,157.95 5,415.85 STREET MAINT WORKER III 8174 4,946.34 5,193.66 5,453.34 5,726.01 6,012.31 PARK MAINTENANCE WORKER I 4153 3,943.02 4,140.18 4,347.19 4,564.54 4,792.77 PARK MAINTENANCE WORKER II 4163 4,329.47 4,545.94 4,773.24 5,011.90 5,262.50 PARK MAINTENANCE WORKER III 4174 4,801.40 5,041.47 5,293.54 5,558.22 5,836.13 PARK MAINTENANCE CREW SUPERVISOR 4184 5,277.66 5,541.55 5,818.62 6,109.56 6,415.03 PARK MAINTENANCE SUPERVISOR 4196 5,915.41 6,211.19 6,521.74 6,847.83 7,190.22