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HomeMy WebLinkAboutE-6 Staff Report - Restated MOU for IBEW CONSENT ITEM E-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: OCTOBER 18, 2021 SUBJECT: APPROVAL OF AMENDED AND RESTATED MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AZUSA AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 18 (IBEW) BACKGROUND: The City’s Negotiation Team consisting of Talika Johnson, Director of Administrative Services, and Nico DeAnda-Scaia, Deputy City Administrator, has been in negotiations with the International Brotherhood of Electrical Workers, Local 18 (IBEW). The IBEW membership consists of Azusa Light and Water Workers and Supervisors. Mutual agreement between the City of Azusa and IBEW has been reached; therefore, negotiations with the IBEW has been concluded. This action will amend and restate the existing Memorandum of Understanding (MOU) of the IBEW with a contract term through July 31, 2025. 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 International Brotherhood of Electrical Workers, Local 18. ANALYSIS: The MOU between the City of Azusa and IBEW expired on July 31, 2021. Negotiations with IBEW commenced in May 2021. Sessions consisted of several discussions of the City’s current financial position, future projections, and operational matters such as safety, salary market comparisons, standby and overtime considerations and more. 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 many positive steps to create operational efficiencies and reduce costs, and to increase its revenue base APPROVED CITY COUNCIL 10/18/2021 IBEW MOU August 1, 2021 – July 31, 2025 October 18, 2021 Page 2 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: August 1, 2021 through July 31, 2025. 2. Cost of Living Adjustment: Fiscal Year 2021-2022: 4% Fiscal Year 2022-2023: 3% Fiscal Year 2023-2024: 3% Fiscal Year 2024-2025: 3% 3. Salary Adjustments: Effective August 1, 2021, following classifications will receive one-time salary adjustment, separate from cost of living adjustment: Field Service Representative 10.00% Field Service Supervisor 9.80% Apprentice Line Mechanic 4.00% Line Mechanic 4.33% Electric Troubleshooter 2.63% Apprentice Electric Test Tech 8.81% Electrical Test Technician 8.11% Senior Electric Test Technician 7.86% Electric Crew Supervisor 2.63% Electric Distribution 2.63% 4. Deferred Compensation: Effective August 1, 2021, City will provide $100/month to each employee. Effective January 1, 2022, employees have option to redirect this amount towards FBP contribution to assist with premium costs. 5. Flexible Benefit Plan: Decrease to FBP max cap for all members: Effective upon ratification of MOU, FBP will decrease to $1,500/mo from $1,506/mo. 6. Footwear Allowance: Increase from $235/yr to $300/yr. Other substantive language added to the MOU, includes, but not limited to: adding a reopener option to discuss the Flexible Benefit Plan (FBP) in year three, providing periodic replacement of city-issued uniforms and reimbursement for uniforms purchased from outside source, holding monthly division level safety meetings, special acting pay requirement to include field service representatives, and 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. IBEW MOU August 1, 2021 – July 31, 2025 October 18, 2021 Page 3 FISCAL IMPACT: The cost of the aforementioned IBEW benefit adjustments impacting over 64 employees is estimated at $1,383,605 for the four-year term of this contract, of which approximately 2.93% (or $40,540) is allocated to the General Fund. The first year cost has already been included in the Fiscal Year 2021/2022 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 Brotherhood of Electrical Workers, Local 18 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AZUSA AND LOCAL 18 OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS AUGUST 1, 2021 THROUGH JULY 31, 2025 Attachment 1 TABLE OF CONTENTS 1. RECOGNITION ..................................................................................................................................... 1 2. CITY RIGHTS ....................................................................................................................................... 1 3. EMPLOYEE ORGANIZATIONAL RIGHTS AND RESPONSIBILITIES ................................................ 2 4. NONDISCRIMINATION ........................................................................................................................ 4 5. SAFETY AND HEALTH ........................................................................................................................ 4 6. GRIEVANCE AND APPEALS PROCEDURE ....................................................................................... 5 7. PROBATIONARY EMPLOYEES .......................................................................................................... 8 8. REINSTATEMENT ................................................................................................................................ 9 9. NO STRIKE - NO LOCKOUT ................................................................................................................ 9 10. HOURS OF WORK ............................................................................................................................. 10 11. OVERTIME ......................................................................................................................................... 11 12. STANDBY AND CALLBACK............................................................................................................... 13 13. WORKING OUT OF CLASSIFICATION ............................................................................................. 14 14. SALARY AND COMPENSATION AND RETIREMENT ...................................................................... 15 14.1. Pay Increases ................................................................................................................15 14.2 Differential Pay - Rubber Gloving ...............................................................................15 14.3 Salary Surveys .............................................................................................................15 14.4. Flex Staffing.................................................................................................................15 14.5. Apprentice Line Mechanic and Line Mechanic Helper ...............................................15 14.6. Customer Service Representatives ...............................................................................16 14.7. Water Distribution Workers and Water Treatment Operators .....................................16 14.8. Meter Test Series .........................................................................................................16 14.9. Retirement ....................................................................................................................17 14.10. Retirement Enhancement .............................................................................................17 14.11. Longevity Premium .....................................................................................................18 14.12. Bilingual Premium .......................................................................................................18 14.13. Education Incentive Premium ......................................................................................18 14.14. Automatic Payroll Deposit ...........................................................................................19 14.15. Job Security ..................................................................................................................19 14.16.Salary Adjustments .......................................................................................................19 15. HOLIDAYS .......................................................................................................................................... 20 15.1. Designated Holidays ....................................................................................................20 15.2. Applicable Overtime Rates ..........................................................................................20 15.3. Floating Holidays .........................................................................................................20 15.4. Observation ..................................................................................................................20 16. VACATION .......................................................................................................................................... 21 16.1. Computation and Accrual of Vacation ........................................................................21 16.2. Termination ..................................................................................................................21 16.3. Conversion ...................................................................................................................21 17. LEAVE OF ABSENCE ........................................................................................................................ 22 18. JURY DUTY ........................................................................................................................................ 22 19. MILITARY LEAVE ............................................................................................................................... 23 20. SICK LEAVE, INDUSTRIAL LEAVE, AND BEREAVEMENT LEAVE ................................................ 23 20.1. Sick Leave ....................................................................................................................23 20.2. Procedure .....................................................................................................................24 20.3. Probationary Period .....................................................................................................24 20.4. Reasons for Use of Sick Leave ....................................................................................24 20.5. Restrictions on Sick Leave ...........................................................................................24 20.6. Accrual and Use ...........................................................................................................25 20.7. Payment for Accumulated Sick Leave .........................................................................25 20.8. Sick Leave During Vacation ........................................................................................26 20.9. Industrial Leave ...........................................................................................................26 20.10. Bereavement Leave ......................................................................................................28 21. FRINGE BENEFIT ADMINISTRATION .............................................................................................. 28 21.1. Administration .............................................................................................................28 21.2. Selection of Funding Method.......................................................................................28 21.3. Changes ........................................................................................................................28 21.4. Deferred Compensation ...............................................................................................28 22. LIFE INSURANCE .............................................................................................................................. 29 23. HEALTH BENEFITS ........................................................................................................................... 29 23.1. Flexible Benefit Plan....................................................................................................29 23.2. Retirement ....................................................................................................................30 24. EDUCATIONAL REIMBURSEMENT AND LICENSES, COMPUTER LOAN .................................... 31 24.1. Tuition Reimbursement ...............................................................................................31 24.2. Repayment of Apprentice Line Mechanic Training ....................................................31 24.3. Computer Loan Program..............................................................................................31 25. UNIFORM STANDARDS .................................................................................................................... 31 25.1. Presentability................................................................................................................31 25.2. Warm Weather .............................................................................................................32 25.3. Shirts ............................................................................................................................32 25.4. Field Service Representatives ......................................................................................32 25.5. Customer Service .........................................................................................................32 25.6. Uniform Replacement ..................................................................................................32 26. SOLE AND ENTIRE MEMORANDUM OF UNDERSTANDING ......................................................... 32 27. WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT .............................................. 33 28. SEPARABILITY .................................................................................................................................. 33 29. MAINTENANCE OF EXISTING BENEFITS AND CONDITIONS ....................................................... 33 30. LONG TERM DISABILITY INSURANCE ............................................................................................ 33 31. TERM OF MEMORANDUM OF UNDERSTANDING ......................................................................... 34 32. RATIFICATION AND EXECUTION .................................................................................................... 34 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AZUSA AND LOCAL 18 OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS Effective August 1, 2021 thru July 31, 2025 1. RECOGNITION Pursuant to the policy of the City of Azusa (hereinafter referred to as the City), the City has recognized Local 18 of the International Brotherhood of Electrical Workers (hereinafter referred to as the Union) as the sole bargaining representative for those Employees (hereinafter referred to as employee(s) working for the City who are enumerated in Exhibit "A.”. 2. CITY RIGHTS 2.1. 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 provisions of this Memorandum of Understanding or by law to manage the CITY, as such rights existed prior to the execution of this Memorandum of Understanding. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include, but not be limited to, the following rights: 2.1.1. To manage the City generally and to determine the issues of policy. 2.1.2. To determine the existence or non-existence of facts which are the basis of the Management decision. 2.1.3. To determine the necessity and organization of any service or activity conducted by the CITY and expand or diminish services. 2.1.4. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. 2.1.5. Methods of financing. 2.1.6. Types of equipment or technology to be used. 2.1.7. To determine and change the facilities, methods, technology, means, and size of the work force by which the City operations are to be conducted. 2.1.8. 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, the right to contract for or subcontract any work or operation of the City. 2.1.9. 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. 2.1.10. To relieve employees from duties for lack of work or similar non-disciplinary reasons. 2.1.11. To establish and modify productivity and performance programs and standards. 2.1.12. To discharge, suspend, demote or otherwise discipline employees for proper cause. 2 2.1.13. To determine job classifications and to reclassify employees. 2.1.14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with this Memorandum of Understanding and applicable Resolutions and Codes of the City. 2.1.15. To determine policies, procedures and standards for selection, training and promotion of employees. 2.1.16. To establish employee performance standards including, but not limited to, quality and quantity standards and to require compliance therewith. 2.1.17. To maintain order and efficiency in its facilities and operations. 2.1.18. To establish, promulgate and modify rules and regulations to maintain order and safety in the City, which are not in contravention with this agreement. 2.1.19. To take any and all necessary action to carry out the mission of the City in emergencies not contrary to this Agreement. 3. EMPLOYEE ORGANIZATIONAL RIGHTS AND RESPONSIBILITIES 3.1. Dues Deductions The City shall deduct for dues and Union benefits on regular basis from the pay of all employees in the classifications and positions recognized to be represented by the Union who voluntarily authorizes such deduction, in writing, on a mutually agreed upon form to be provided for this purpose. The City shall remit such funds to the Union within ten (10) days following their deduction. 3.2. 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 the intentional failure of the City to transmit to the Union monies deducted from the employees pursuant to this Article. 3.3. Newly Hired Employees The Union shall be provided with a list of the names and departments of newly hired employees in the representation unit on a monthly basis. 3.4. Maintenance of Membership 3.4.1. All unit members who, on January 1, 1994, or thereafter are members of IBEW, Local 18 shall maintain membership in IBEW, Local 18 for the term of this MOU, except as otherwise provided below. 3.4.2. IBEW, Local 18 hereby agrees to hold harmless the City of Azusa and its officers and employees from any claim loss or liability or cause of action of any nature whatsoever arising out of the implementation of this article. 3.4.3. Every employee who is a member of IBEW, Local 18 shall have the right to withdraw from membership between June 1 and June 15 of each year. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 3 3.5. Bulletin Boards The Union shall have the right to use adequate space on the bulletin boards on City premises for the purpose of posting announcements and Union information. The bulletin board space shall be used for the following subjects only: 3.5.1. Union recreational, social and related Union news bulletins. 3.5.2. Scheduled Union meetings. 3.5.3. Information concerning Union elections and the results thereof. 3.5.4. Reports of official Union business, including Union newsletters, reports of committees, or the Board of Directors. 3.5.5. Any other written material which first has been approved and initiated by the designated City representatives appointed by the City Manager. The designated City representatives must either approve or disapprove a request for posting within twenty-four (24) hours, excluding Saturday, Sunday and legal holidays, from the receipt of the material and request to post it. The designated City representatives shall not unreasonably withhold permission to post. 3.6. Rights, Powers and Authority Except as limited by specific and express terms of this Memorandum of Understanding, the Union hereby retains and reserves unto itself all rights, powers and authority, confirmed on and vested in it by the laws and Constitution of the State of California or United States of America. 3.7. Union Organization 3.7.1. The Union representatives are those elected or appointed in accordance with the constitution and bylaws of the Union. Azusa recognizes the Union's right to appoint shop stewards. 3.7.1.1. The Union shall notify the Azusa City Management Representative, in writing, of the names and job class titles of its officers, shop stewards and other representatives each time an election is held or new appointments are made. 3.7.1.2. An employee elected or appointed as an officer or shop steward of the Union shall be required to work full time in his respective job class and shall not interrupt the work of other employees. 3.7.2. Officers and representatives (subject to the provisions of Paragraph 3.7.1.2.) of the Union shall be permitted to visit employee work locations for the purpose of observing conditions under which employees are working, provided such visit shall not interrupt the work of such employees, interfere with the normal operations of the department or with established safety requirements. 3.7.2.1. Such officers and representatives shall not enter any work location without the knowledge of the department head, division head, or other appropriate supervisor. 3.7.2.2. Solicitation of membership and all activities concerned with the internal management of the Union, such as collecting dues, holding membership meetings, preparation of petitions or grievance material, preparation of proposals, campaigning for office, conducting elections and distributing literature, shall not be conducted during working hours. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 4 3.7.2.3. Such officers and representatives shall not use City vehicles while conducting activities as stated in 3.7.2.2. 3.7.3. In the event that the Union is formally meeting and conferring with representatives of Azusa on matters within the scope of representation during regular Azusa business hours, a reasonable number of officers, shop stewards or other representatives of the Union shall be allowed reasonable time off without loss of compensation or other benefits. 3.7.4. Such officers, shop stewards and representatives shall not leave their duty or workstation or assignment without the knowledge of the department head, division head or other appropriate supervisor. 3.7.4.1. Such meetings are subject to scheduling in a manner consistent with operating needs and work schedules. 3.7.5. Officers and shop stewards or representatives (subject to the provisions of Paragraph 3.7.1.2.) of the Union shall be permitted, if requested by the Union employee, to attend the employee counseling session, which could result in disciplinary action. Such officers shall also be permitted, if requested by the Union employee, to be present at employee disciplinary session. 3.7.5.1. Such officers shall not leave their duty or workstation without the knowledge of the department head, division manager or other appropriate supervisor. 3.7.6. Officers, shop stewards or representatives of the Union, when requested of their respective division manager, shall be given reasonable time during work hours to investigate and process specified grievances or complaints arising out of the application of MOU or personnel rules. 4. NONDISCRIMINATION 4.1. Protection of Rights The parties recognize and agree to protect the rights of all employees to join and participate in protected Union activities or to refrain from joining or participating in such activities. 4.2. Anti-Discrimination The City and the Union agree that they shall not discriminate against any employee because of race, color, sex, age, national origin, political or religious opinions or affiliation. The parties 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. 4.3. Gender Whenever a word of the masculine or feminine gender is used in this Memorandum of Understanding, it shall be construed to include the other gender. 5. SAFETY AND HEALTH 5.1. Federal and State Laws The City and the employees of the City agree to comply with all applicable federal and state laws, which relate to health and safety. In addition, the City and the Union agree to actively pursue the continuance of safe working MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 5 procedures and environment. 5.2. Footwear Employees who are required to wear specified footwear (safety shoes or boots, heavy-duty walking shoes) shall be reimbursed for up to three hundred dollars $300 per year, except for those employees who are required to wear Lineman's boots shall receive an allowance of up to the equivalent of one pair of lineman's boots per year. An employee who fails to outfit him/herself with proper footwear when reporting to work shall be asked to leave without pay until the proper footwear requirement is met. Management and employees shall determine jointly the acceptable footwear at the beginning of each fiscal year. Employees working less than one (1) year shall be entitled to the appropriate allowance under this section on a pro rata basis. Employees shall be reimbursed within 30 days after submitting the receipt. 5.3. Weather and Air Quality The department head or his/her division manager shall determine what constitutes inclement weather or unhealthful air quality with due regard to the nature of the work to be performed and the needs of the CITY. If the South Coast Air Quality Management District (SCAQMD) declares a color code red, then all work in the field other than emergency work (e.g. restoring service due to outage or repairing major leak) as determined by the department head or his/her division manager and customer turn-ons shall cease until such alert is cancelled. If the department head or his/her division manager declares that a condition of inclement weather or air quality exists, then all field employees shall return to the corporation yard for the duration of the assigned shift except for those performing emergency work as determined by the department head or his/her division manager and customer turn-ons. The employees not performing emergency work or customer turn-ons may be assigned light duty work, which does not involve heavy and constant exposure to such weather or unhealthful air quality conditions. 5.4. Safety Meetings Management shall hold division level safety meetings, at least once per month, to address the safety concerns of Local 18 members. The meetings shall include at least one manager and all available Local 18 members on duty the day of the safety meeting. Meeting minutes shall be recorded to ensure that issues raised during the safety meetings are addressed and resolved in a timely fashion. 6. GRIEVANCE AND APPEALS PROCEDURE 6.1. Resolution and Complaints In any instance of grievance, the employee shall first make an effort to resolve such grievance with his immediate supervisor. In the event such efforts are not mutually satisfactory, the employee aggrieved shall within five (5) working days, reduce his complaint to writing. The complaint shall set forth all the facts necessary to understand the issues involved. It shall be submitted in writing to the employee's immediate supervisor who shall transmit it to the department head. 6.2. Investigation The department head shall investigate the facts and issues involved and respond in writing within five (5) working days, stating the department's view on the issue involved, with a copy to the employee. 6.3. Further Discussion If the employee wishes to discuss the grievance further, he shall, within ten (10) working days of receipt of the MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 6 department head's reply, appeal the department head's decision in accordance with Section 6.4. or Section 6.5. 6.4. Appeal of Disciplinary Action Any employee in the classified service shall have the right to appeal to the Personnel Board regarding any discipline. The appeal shall contain a written narrative by the employee of the discipline imposed, giving dates of occurrences or conditions, as applicable. The department head shall prepare a written answer to the allegations and transmit it to the Personnel Board with a copy to the employee. 6.4.1. Hearings The Personnel Board shall set the matter for hearing and give the appellant and the department head at least five (5) business days notice in writing of the date and place of such hearing. The appellant shall attend, unless excused by the Personnel Board, and shall be entitled to: 6.4.1.1. Be represented by counsel or other representative of his choice; 6.4.1.2. Testify under oath or affirmation; 6.4.1.3. Subpoena witnesses; 6.4.1.4. Cross-examine all witnesses; 6.4.1.5. Present such affidavits, exhibits and other evidence deemed pertinent to the hearing. 6.4.2. Unexcused Absences Unexcused absences of the appellant at such hearing shall be deemed a withdrawal of the petition and consent to the action from which the appeal was taken. 6.4.3. Power to Examine In any investigation or hearing conducted by the Personnel Board, the Board shall have the power to examine witnesses under oath and compel their attendance or the production of evidence before it by subpoena issued in the name of the City and attested by the City Clerk. It shall be the duty of the Chief of Police to cause all such subpoenas to be served and refusal of a person to attend or testify in answer to such subpoena shall subject said person to prosecution in the same manner set forth by law for failure to appear before the City Council in response to a subpoena issued by the City Council. Each member of the Personnel Board shall have power to administer oaths to witnesses. The Personnel Board may exclude from any public or private hearing during the examination of a witness any or all other witnesses in the matter being investigated by the Personnel Board. 6.4.4. Burden of Proof The burden of proof shall be on the department head. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 7 6.4.5. Informality Hearings shall be informal. The Personnel Board may receive and consider such oral, written and physical evidence as it deems pertinent, and may receive it in such order and manner as in the judgment of the Personnel Board is fair and equitable in each case. Parties to any matter before the Personnel Board may be represented by counsel, but the right of such representation shall not be construed to require observance of the formal rules of evidence, or other formality, in the conduct of a hearing; nor shall such formality in the proceedings invalidate any decision rendered by the Personnel Board. 6.4.6. Findings of the Personnel Board 6.4.6.1. Within ten (10) days after concluding the hearing, the Personnel Board shall certify its findings, in writing, to the City Council, that the accused was exonerated, reprimanded, fined, demoted, removed, dismissed, reduced in compensation or otherwise penalized. 6.4.6.2. Should the Personnel Board find the accused was suspended, demoted, or removed without sufficient cause, said Personnel Board shall order the accused reinstated forthwith to the position from which he was suspended, demoted, or removed and shall order paid to him the salary to which he would have been entitled had he not been suspended, demoted or removed. 6.4.6.3. After the Personnel Board has made its decision, the employee shall have no right to grieve the disciplinary action with the exception of Section 6.4.6.4. (Rev 7-30-90). 6.4.6.4. Except for bad faith or lack of evidence, such findings of the Personnel Board shall certify to the City Council shall be final. In such an event of bad faith or lack of evidence, the City Council shall be the final review board to which an employee may appeal. 6.4.6.5. The findings of the Personnel Board shall be filed as permanent record by the Personnel Officer, who shall deliver a certified copy to any employee, officer or other persons affected by such findings. 6.4.6.6. Any member of the Personnel Board may submit a minority or supplemental report, which shall be filed as a permanent record by the Personnel Officer. 6.4.7. Joint Accusations Any person who is accused jointly with one or more employees shall have the right to appear before the Personnel Board and request that his appeal be heard separately. 6.4.8. Continuance The Personnel Board may grant a continuance of any hearing for good cause. 6.5. Advisory Arbitration Advisory arbitration is for grievances relating solely to contract/MOU interpretation and where the employee elects to be represented by IBEW. Where the employee elects not to be represented by IBEW, such grievances shall be heard by the Personnel Board. 6.5.1. The arbitrator shall be selected by mutual agreement of both parties from a list of seven (7) MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 8 arbitrators submitted by the American Arbitration Association. The selection shall be made by alternatively striking the list with the first strike determined by lot. 6.5.2. Where practicable, the date for a hearing shall not be less than 20 calendar days, nor more than 60 calendar days, from the date of the filing of the appeal with the Personnel Director. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. 6.5.3. All hearings shall be conducted according to the procedures of the American Arbitration Association. 6.5.4. Arbitration of a grievance under this provision shall be limited to the issues submitted. The Arbitrator's decision shall not add to, subtract from, or otherwise modify the terms and conditions of this agreement. 6.5.5. The Arbitrator shall submit his/her written decision within thirty (30) calendar days following the close of hearing, unless the parties agree to an extension. The decision shall set forth findings of fact and conclusions. 6.5.6. The Arbitrator's decision shall be filed with the City Administrator, with a copy sent to the grievant and a copy to the Human Resources Director. 6.5.7. The Arbitrator's decision shall be subject to the approval of the City Council. Either party shall have the opportunity to submit their arguments to the City Council with regard to the Arbitrator's findings of fact and conclusions. 6.5.8. The decision of the City Council shall be final and conclusive. Copies of the City Council's decision, including the Arbitrator's recommendation(s) shall be filed where appropriate. 6.5.9. Each party shall bear equally the cost of facilities, fees and expenses of the Arbitrator, including any court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the Arbitrator or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties, which result in an arbitration fee. 6.5.10. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section. 7. PROBATIONARY EMPLOYEES 7.1. Probationary Basis All appointments in the classified service, including promotional appointments, shall be made on a probationary basis. All appointments, whether initial or promotional, shall be for a six (6) month probationary period, and customary evaluations of the progress and desirability of the appointee as a regular employee shall be made. 7.2. Discharge Subject to Section 7.3., an employee may be discharged at any time during his probationary period without the right of appeal or hearing. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 9 7.3. Probationary Reinstatement An employee serving a probationary period in a promotional position whose job performance is unsatisfactory shall be reinstated to the position from which he was promoted, unless charges are filed and he is discharged in a lawful manner. 8. REINSTATEMENT 8.1. Recommendation of Department Head Upon recommendation of the department head and the City Manager, an employee, who resigned in good standing, may within one (1) year of the effective date of such resignation, be reinstated without an examination to a position in the same class in which he previously served, providing a vacancy exists. Reinstatement will be made to the step and salary range, which was received by the employee at the time of resignation. 8.2. Previous Service Credit An employee reinstated after resignation in accordance with Section 8.1. shall be credited with his previous service for computation of vacation, but shall not retain any sick leave accumulated prior to resignation. 8.3. Probationary Period An employee, so reinstated, shall serve a probationary period of six (6) months and be subject to termination upon unsatisfactory service during the probationary period. The employee shall not be eligible for vacation benefits until he achieves regular status; at which time, he or she shall be eligible for benefits earned following reinstatement and credited with previous service for computation of vacation leave. 9. NO STRIKE - NO LOCKOUT PROHIBITED CONDUCT 9.1. No Cause Agreement The union, its officers, agents, representatives and members agree that during the term of this Agreement, they will not cause or condone any strike, walkout, slowdown, sickout, or any other job action by withholding or refusing to perform services. 9.2. Lockout The City agrees that it shall not lock out its employees during the term of this Agreement. The term "lockout" is hereby defined so as not to include the discharge, suspension, termination, layoff, failure to recall, or failure to return to work of employees of the City in the exercise of its rights to do so as set forth in any of the provisions of this Agreement or applicable ordinance or law. 9.3. Termination Any employee who participates in any conduct prohibited in Section 9.1. of the above may be subject to termination by the City. 9.4. Suspension In addition to any other lawful remedies or disciplinary actions available to the City, if the Union fails, in good faith, to perform all responsibilities listed below in Section 9.5., "Union Responsibility - Instruction to Cease", the City may suspend any and all rights, privileges, accorded to the union under this Memorandum of MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 10 Understanding, including but not limited to suspension of recognition of the Union, grievance procedure, right of access, check-off, the use of the City's bulletin boards and facilities. UNION RESPONSIBILITY 9.5. Instruction to Cease In the event that the Union, its officers, agents, representatives or members engage in any of the conduct prohibited in Section 9.1 above, "Prohibited Conduct - No Cause Agreement", the Union or its duly authorized representatives shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this Memorandum of Understanding and unlawful and they should immediately cease engaging in conduct prohibited in Section 9.1 above, "Prohibited Conduct - No Cause Agreement" and return to work. 9.6. Non-Liability If the Union performs all of the responsibilities set forth in Section 9.5. above, its officers, agents and representatives shall not be liable for damages for prohibited conduct performed by employees who are covered by this Agreement in violation of Section 9.1 above, "Prohibited Conduct - No Cause Agreement". 10. HOURS OF WORK 10.1. Intent of Article This article is intended to define the normal hours of work per day or per week in effect at the time of execution of this MOU. Daily hours of work or shifts for employees within departments shall be assigned by the department head, as required to meet the needs of the department. 10.2. Workweek/Workday 10.2.1. The regular workweek for all employees covered by this MOU shall not exceed forty (40) hours for four (4) consecutive days, commencing at 12:01 a.m. Sunday and ending at Midnight Saturday. The workweek for all employees shall be either Monday through Thursday or Tuesday through Friday. The City reserves the right to determine which of the four (4) consecutive workdays (as defined above) for any employee affected by this MOU as required to meet the needs of the department. 10.2.2. Except as provided for in 10.2.4 and 10.2.5, the workday will be ten and one-half (10 1/2) hours with forty (40) minutes for lunch and two (2) fifteen (15) minute breaks to be scheduled with the approval of a supervisor or department head. The City reserves the right to determine the beginning and ending times of the ten (10) hour workday. In the event an employee is unable to take their 40 minute lunch break, they will be paid for those 40 minutes. 10.2.3. Notwithstanding the above, the Water Treatment Operators may work an alternate work schedule as directed by the Utilities Director. The Utilities Director shall meet and confer with the Union, however, prior to implementing any such alternative schedule. The parties acknowledge that to maintain any alternative work schedule it is necessary to maintain a work period in accordance FLSA. The current 42-day alternative work schedule is as follows: Monday to Thursday Monday to Thursday MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 11 Tuesday to Friday Tuesday to Friday Wednesday to Wednesday For purposes of section 11.4.6, the Saturday before and after the Wednesday to Wednesday work period in the 42-day schedule shall be treated as a Sunday. 10.2.4. The City may maintain a five eight-hour days per week schedule for employees currently assigned to such a schedule. Further the City may assign a five, eight-hour days per week schedule to employees preferring to work such a schedule. 10.2.5. Commencing no later than the first year of the agreement, the parties agree to meet & discuss additional alternatives that will enable the City to provide services on an expanded basis to best meet the public’s needs. 10.3. Timekeeping Interval In compliance with the Fair Labor Standards Act (FLSA), the minimum time keeping 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. OVERTIME 11.1. Premium Pay All employees shall be entitled to premium pay or compensatory time off for all hours worked in excess of ten (10) hours in one work day or forty (40) hours within the employee's regular work week. For the purposes of this Article holiday pay, sick leave, and other compensated time off shall count for the hours. 11.2. Compensatory Time Off 11.2.1. Compensatory time shall be accumulated at the appropriate rate for each hour of overtime worked. Only time actually worked shall count in the computation of premium pay or compensatory time off. 11.2.2. Compensatory time shall be paid either in the form of pay at the employee's regular hourly rate at the time the overtime was worked or equal time off and shall be decided at the time the overtime is worked. The method of payment of compensatory time, either in cash or equivalent time off, must be authorized and approved by the department head. 11.2.3. Accumulated compensatory time not used in the pay period in which it was earned may be carried over to a maximum of two hundred forty (240) hours. 11.2.4. Accumulated compensatory time off may be taken by an employee upon reasonable notice and prior approval of the department head. In approving compensatory time off, the department head will, as far as practicable, attempt to accommodate employee convenience to the degree possible in light of the operational requirements of the department. 11.3. Overtime Timekeeping Interval All overtime shall be accumulated in increments of no less than fifteen (15) minutes per day. When an employee works less than fifteen (15) minutes per day of overtime, the employee shall not receive compensatory time for increments of less than fifteen (15) minutes per day. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 12 11.4. Rate of Compensation 11.4.1. Except as provided elsewhere, all overtime work shall be compensated at double time (2) times the number of hours worked, except for scheduled overtime. Note: if working scheduled overtime, and a situation arises where it would be a call out incident and those who are on scheduled overtime are asked to respond will be paid at the double time rate starting at the point of the call out. 11.4.2. All work done between the hours of midnight (12 midnight) and five o'clock in the morning (5 a.m.) shall be compensated at two (2) times the usual rate of pay. 11.4.3. In the event that an employee is summoned to work before four o'clock in the morning (4 a.m.) he or she shall be compensated at two (2) times the normal rate of pay until either he or she has a eight (8) hour rest period. 11.4.4. In the event that an employee is summoned to work between 4 a.m. and 5 a.m. and is required to continue to work, he or she shall be compensated one and one-half (1 1/2) times the regular rate of pay for all work performed after 5 a.m. until he or she has a eight(8) hour rest period. 11.4.5. 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 break. 11.4.6. All hours worked during holidays (except for floating holidays) and Sundays shall be compensated at premium overtime rate of two (2) times the normal rate, which may be taken in pay or equivalent compensatory time off. 11.5. Overtime Meal Policy 11.5.1. When an employee is required to work continuous, unplanned overtime beyond his or her regular shift, he or she 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 he or she shall receive a meal reimbursement of sixteen dollars ($16) for each such period. During an emergency situation, a meal period would not be mandatory and the missed ½ hour meal period shall be stacked to the end of the shift at the appropriate overtime rate. 11.5.2. When an employee is required to perform scheduled or unscheduled work outside of his or her regular work hours, he or she shall be provided with a meal and the time to eat the meal no less frequently than every four (4) hours or a meal reimbursement of sixteen dollars ($16) for each such four (4) hour period and ½ hour shall be added on to the time worked at the appropriate overtime rate for each meal period missed. 11.5.3. In the event that an employee is summoned to work before five o'clock in the morning (5 a.m.) and is required to continue to work into his or her regular shift on the same task that he or she was summoned for shall be provided with a meal and time to eat the meal no less frequently than every four (4) hours or a meal reimbursement of sixteen dollars ($16) for each such four (4) hour period. 11.5.4. When an employee is required to report to work one (1) hour prior to his/her normal shift, he/she shall be provided a meal and the time to eat the meal, or a meal reimbursement of not more than sixteen dollars ($16). MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 13 11.6. Limitation of Authority Nothing herein is intended to limit or restrict the authority of the City to require any employee to perform overtime work. 11.7. Priority Regular employees will be given priority to receive after-hours work assignments. However, management reserves the discretion to assign after-hours work to temporary/part-time employees as long as the temporary/part-time employee, by performing an after-hours work assignment, will not exceed thirty-two (32) hours worked during the week. 12. STANDBY AND CALLBACK 12.1. Standby Pay The City agrees to pay time and one-half (1 1/2) for standby time with a minimum of two (2) hours, which will result in three (3) hours of regular pay. In the event the employee notifies the department that he/she will be using sick leave while on standby duty, he/she will not be entitled to standby pay. Standby duty may be assigned by management to ensure continued service to customers, public safety, and/or protection of utility assets; provided, however, such standby duty shall be assigned on an annual basis and evenly distributed to all qualified personnel. The criteria for an employee to be assigned standby duty shall be objective based on the necessary functions that must be performed safely while on standby duty. 12.2. Callback Pay If an employee is required to be called back to work after completing his or her normal shift or after having left City premises or the employee's work location, the employee shall be compensated at the appropriate rate for each hour worked on callback with a minimum of two (2) hours callback compensation at the appropriate rate, regardless of whether the employee actually works less than two (2) hours. This provision shall be applicable to employees although the employee's regular work week is not completed but shall not apply to employees who are continuing on duty for their normal work shift. In accordance with prior practice, the time starts when the callback call is received by the employee. 12.3. Appropriate Rate of Pay for Callback 12.3.1. The rate of pay for all callbacks as defined in this Section, including employees on standby duty, shall be compensated at double time (2) the normal rate of pay. 12.3.2. The time period to be used to compute whether a callback is the first callback shall be from the end of the normal workday for a period of twenty-four (24) hours, beginning on Thursday, when the regular standby duty begins. 12.3.3. The department head or his/her designee may at his/her discretion, direct an employee to leave work and require that the employee have an eight (8) hour rest period whenever the employee has been called back. In the case where an employee is sent home during his/her regular shift, the employee will be paid at the regular rate of pay until the end of the normal shift. The employee may be called back prior to the end of his/her normal shift and be compensated at the appropriate rate of pay. No employee shall be denied an eight (8) hour rest period after working sixteen (16) consecutive hours if the employee requests such rest period because of their physical condition. Employees shall be paid at their regular hourly rate of pay for all regularly scheduled work hours, which occur during the rest period. Employees required to return to work during such rest periods, shall be compensated at MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 14 the overtime rate of pay for all time worked; provided, however, such overtime pay shall be in lieu of, and not in addition to, the regular rate of pay. 13. WORKING OUT OF CLASSIFICATION 13.1. Special Acting Pay On an inadvertent and occasional basis, employees assume the responsibilities of and perform the duties of their respective supervisors who are away from the City for the purposes of scheduled or unscheduled events such as training, illness, bereavement, emergency, etc. Finance will create a special pay code entitled "Special Acting Pay" , under which the employee who is requested by supervisor or management to act in the place of another shall receive additional compensation of 5% of his or her base pay for the hours in which he or she is in acting capacity, including hours compensated at premium rates. The minimum number of hours that must be worked for "Special Acting Pay" to be applicable (from the first hour) shall be ten (10) hours; provided, however, such ten (10) hour minimum shall not be required outside of regular working hours when i) an emergency requires immediate attention and a crew to complete the repairs and ii) the standby employee has called all regular supervisors back to run the crew and none were available to come in to work. The maximum number of hours for which "Special Acting Pay" shall be applicable shall be thirty-nine and three-quarters (39.75) hours. If an employee is called upon to act in a higher capacity for forty (40) or more hours, the provisions of Section 13.2 shall apply. 13.1.1 Field Service Representatives (FSR), when acting in the position of Field Service Supervisor shall be eligible for Special Acting Pay immediately (from the first hour). 13.2. 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 5% increase (or a 5% increase if the top step for the pay range does not provide at least a 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. 13.3. Restriction An employee shall not continue acting in a higher classification, while retaining his existing classification, for more than ninety (90) calendar days except on authorization of the City Council. 13.4. Absence During the forty (40) consecutive working hour eligibility period before an employee is entitled to receive premium pay for working out of class, absence for any reason, except absence due to a regularly scheduled holiday or a regularly scheduled day off, shall break consecutiveness and cause an employee to be ineligible to receive premium pay. 13.5 Lead Line Mechanic The Line Mechanic who is assigned the duties of running the Service Crew (Truck 205) shall receive, in addition to the base salary, pay equal to five percent (5%) percent of his or her base salary. This assignment shall be made in writing. This special compensation shall be paid along with the regular pay for the pay period and shall be included in compensation reportable for the purposes of retirement. The purpose of this pay is to compensate the Line Mechanic for performing Lead Line Mechanic duties. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 15 13.6 Absence During Acting Pay An employee otherwise eligible for acting pay shall not be eligible during scheduled periods of vacation or when on sick leave. 14. SALARY AND COMPENSATION AND RETIREMENT 14.1. Pay Increases Employees covered by this Agreement who are on the payroll on the following dates shall receive pay increases as shown. The salary ranges currently in effect are reflected in Exhibit "A.” 14.1.1 Effective August 1, 2021, there shall be a 4.0% adjustment in the salary for all classifications and steps for employees represented by this agreement. 14.1.2 Effective August 1, 2022, there shall be a 3.0% adjustment in the salary for all classifications and steps for employees represented by this agreement. 14.1.3 Effective August 1, 20123, there shall be an 3.0% adjustment in the salary for all classifications and steps for employees represented by this agreement. 14.1.4 Effective August 1, 2024, there shall be a 3.0% adjustment in the salary for all classifications and steps for employees represented by this agreement. 14.2. Differential Pay – Rubber Gloving After successful completion of training in Rubber Gloving and the formal initiation of a rubber gloving program by the utility as declared by the Utilities Director, the following classifications shall receive a 6% differential to their base monthly salary: Electric Distribution Supervisor Electric Crew Supervisor Electric Troubleshooter Line Mechanic Apprentice Line Mechanic (Step 4 of Apprentice Program, not salary range) 14.3. Salary Survey A committee comprised of Local 18 staff and members along with City Management shall meet to determine adjustments for positions that are substantially lower than the median total compensation of like positions. The entities to be surveyed will be agreed upon by management and the union. 14.4. Flex Staffing Nothing in this article shall preclude management from promoting a qualified employee to a higher step/classification in their flex series. 14.5. Apprentice Line Mechanic and Line Mechanic Helper The classification of Apprentice Line Mechanic shall be assigned a salary range, which is fifteen percent (15%) less than that of the classification of Line Mechanic. The salary relationship between classification of Apprentice Line Mechanic and Line Mechanic Helper shall be maintained as it existed on June 27, 1987. This MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 16 salary range assignment is enumerated in Exhibit “A.” 14.5.1. The classification of Line Mechanic Helper and Apprentice Line Mechanic shall be incorporated into a "flexible" staffing pattern. Employee(s) in the Apprentice Line Mechanic classification shall be promoted to Line Mechanic classification (under probationary status) when the employee(s) has completed the fifth (5th) step as an Apprentice Line Mechanic and, in the opinion of management, has obtained the practical knowledge of performing all facets of duties required of the Line Mechanic. 14.5.2. If, in the event that the Apprentice Line Mechanic is not promoted within one (1) year after attaining the fifth (5th) step, he shall be presented, in writing, the reason(s) for the denial of the promotion, and a list of area(s) where the candidate has insufficient knowledge to achieve the promotion. 14.6. Customer Service Representatives 14.6.1. The classification of Customer Service Representative I, II, and III, hereinafter referred to as CSR I, II, and III, shall be incorporated into the "flexible" staffing pattern. Employee(s) in either the CSR I or CSR II classifications shall be promoted to CSR II or CSR III classification, respectively, (under probationary status) when the employee(s) has completed the fifth (5th) step and in the opinion of management, has obtained the practical knowledge of performing all facets and duties of CSR II or CSR III, respectively. 14.6.2. In the event that the CSR I or CSR II, is not promoted within one (1) year after attaining the fifth (5th) step, he/she will be presented, in writing, the reason(s) for the denial of the promotion, and a list of the area(s) and duties of which the candidate has insufficient knowledge and/or experience to achieve the promotion. 14.7. Water Distribution Workers and Water Treatment Operators 14.7.1. The classification of Water Distribution Worker I/II/III and Water Treatment Operator I/II/III shall be incorporated into the "flexible" staffing pattern. Employee(s) in either the Water Distribution Worker I/II or Water Treatment Operator I/II classifications shall be promoted to the respective "II" or “III’ level respectively (under probationary status) when the employee(s) has completed the fifth (5th) step and in the opinion of management, has obtained the practical knowledge to perform all facets and duties of the respective "II" or “III” level. 14.7.2. In the event that the "I" or “II” level of either position is not promoted within one (1) year after attaining the fifth (5th) step, he/she will be presented, in writing, the reason(s) for the denial of the promotion, and a list of the area(s) and duties of which the candidate has insufficient knowledge and/or experience to achieve the promotion. 14.8. Meter Test Series 14.8.1. The classification of Apprentice Electrical Test Technician shall be incorporated into the "flexible" staffing pattern. Employee(s) in Apprentice Electrical Test Technician classification shall be promoted to Electrical Test Technician classification (under probationary status) when the employee(s) has completed the fifth (5th) step and, in the opinion of management, has obtained the practical knowledge to perform all facets and duties of the Electrical Test Technician. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 17 14.8.2. If, in the event that the Apprentice Electrical Test Technician is not promoted within one (1) year after attaining the fifth (5th) step, he shall be presented, in writing, the reason(s) for the denial of the promotion, and a list of area(s) where the candidate has insufficient knowledge to achieve the promotion. 14.9 Retirement 14.9.1. California Public Employees’ Retirement System The City shall continue its contract with the California Public Employees' Retirement System (CalPERS), "2% @ 55 full formula" plan. The City shall also maintain the increased level of the 1959 Survivor Benefit. The City shall continue to pay the "employee" share of the costs and a portion of the "employer" share of the cost. All employees hired prior to December 31, 2012, agree to pay 7% of the “employer” share of the costs effective the date the MOU is approved. Should all employees hired prior to December 31, 2012, be required to pay the “employee” portion of the CalPERS costs during the term of this MOU and if the amount that would have to then be paid by those employees is more than the 7% of their salary that they are paying to help share the cost of the “employer” share, the amount they are paying towards the “employer” share would be reduced correspondingly, but to no more than 0. All employees hired on or after January 1, 2013 will pay half the normal costs for their CalPERS, but no less than the employee portion of PERS. Employees hired on or after January 1, 2013 will fall under the provisions of the California Public Employees’ Pension Reform Act of 2013 (AB340 and AB197). If the normal cost is evaluated by CalPERS actuarial report to increase or decrease, the employee’s contribution will be adjusted accordingly. PEPRA members under the contract with the California Public Employees’ Retirement System CalPERS formula shall be 2%@ 62. The City shall also maintain an increased level of the 1959 Survivor Benefit. 14.9.2. The City's contract with CalPERS includes the optional benefit of Service Credit for Unused Sick Leave. 14.9.3. The City’s contract with CalPERS includes the optional benefit Employer Paid Member Contributions. 14.9.4. City agrees to purchase an actuarial study to determine the cost of providing miscellaneous employees with the optional benefits of One-Year Final Compensation (Government Code Section 20042) and Annual Cost-of-Living Allowances Increase (Government Code Section 21335). Upon receipt of such actuarial study, City agrees to meet and confer with the Union in good faith with no commitment or obligation on City’s part to implement these optional benefits. 14.9.5 The optional benefit of Two Year Additional Service Credit shall be discretionary of the Council in accordance with Government Code Section 20903. 14.10. Retirement Enhancement Effective July 1, 2006 the retirement formula will be adjusted to reflect an additional .5% to the current formula of 2.0% per year of service at 55 years of age. This enhancement will provide for a retirement formula of 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. Employee will contribute 2% toward the cost of this program. This additional benefit will be provided through the Public Agency Retirement System (PARS). MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 18 State law has eliminated this benefit 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 IBEW covered employees. 14.11. Longevity Premium Effective the first pay period in December 2017, the monthly longevity pay for employees shall be in accordance with the following schedule: 10 yrs = $ 200 15 yrs = $300 20 yrs = $400 14.12. Bilingual Premium An employee shall be eligible to receive up to $200 per month if the following conditions are met: 14.12.1. The employee must on a frequent and recurring basis speak and/or translate by reading/writing one or more languages other than English in the performance of his/her public contact duties with the City. An employee is eligible for $100 per month for verbal skills and an additional $100 per month for written skills. 14.12.2. The employee must pass a language skills test approved or administered by the City. 14.13. Education Incentive Premium 14.13.1 Effective August 1, 2013, employees awarded the following certificates, related to the employee’s job, shall receive the listed dollar amounts per month: CA State Water Resources Control Board Water Treatment Operator Grade 3 $50 CA State Water Resources Control Board Water Treatment Operator Grade 4 $75 CA State Water Resources Control Board Water Treatment Operator Grade 5 $100 CA State Water Resources Control Board Water Distribution Operator Grade 3 $50 CA State Water Resources Control Board Water Distribution Operator Grade 4 $75 CA State Water Resources Control Board Water Distribution Operator Grade 5 $100 It is the agreement of the City and the IBEW that employees receiving pay for Treatment or Distribution certifications can only be compensated for the highest certification of either Treatment or Distribution so that the maximum compensation per month for; Grade 3 is $50, Grade 4 is $75, Grade 5 is $100. No employee is eligible to receive certification pay for treatment and distribution concurrently. 14.13.2 Effective August 1, 2013, employees awarded an Associate of Arts or Science degree from an accredited college or other certificate related to the employee’s mutually agreed to by the Union and the City, shall receive $50 per month. 14.13.3 Effective August 1, 2013, employees awarded a Bachelor of Arts or Science degree from an accredited college shall receive $75 per month. Sections 14.13.2 and 14.13.3 shall apply to any employee whose job description has an equivalency requirement for either an Associate in Arts or Science degree or specific certifications; or a Bachelor of Arts or Science degree. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 19 14.14. Automatic Payroll Deposit The City will continue to offer Automatic Payroll Deposit in cooperation with any bank that utilizes the Automated Clearing House service. 14.15. Job Security The City shall provide twelve months advance notice to any IBEW -represented employee who is targeted for layoff due to technological change. Wherever possible, the City shall provide appropriate career counseling and training and shall make every effort to reclassify such employee into an IBEW -represented position. 14.15.1 Every employee shall receive at least fifteen (15) hours training per year. 14.16. Salary Adjustments Effective August 1, 2021 the following classifications will receive one-time salary adjustments, separate from Cost of Living Increases: Classification Salary Adjustment Field Service Representative 10.00% Field Service Supervisor 9.80% Apprentice Line Mechanic 4.00% Line Mechanic 4.33% Electric Troubleshooter 2.63% Apprentice Electric Test Tech 8.81% Electrical Test Technician 8.11% Senior Electric Test Technician 7.86% Electric Crew Supervisor 2.63% Electric Distribution Supervisor 2.63% 15. HOLIDAYS 15.1. Designated Holidays Employees covered by this agreement shall receive time off with pay for the following holidays, but only if the employee is paid for the workday that precedes or follows the holiday. All holidays shall be paid at a rate of ten (10) hours, consistent with the four (4) day, ten (10) hour workweek schedule. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 20 Holiday Schedule Month FY 2021/2022 FY 2022/2023 FY 2023/2024 FY 2024/2025 Independence Day July 4th July 5* 4* 4* 8* Labor Day 1st Monday in September Sept 6* 5* 4* 2* Columbus Day 2nd Monday in October Oct 11* 10* 9* 14* Veteran’s Day November 11th Nov 11 14* 13 11* Thanksgiving Day 4th Thursday in November Nov 25 24 23 28 Christmas Day December 25th Dec 27 26 25* 25 New Year’s Day January 1st Jan 3 2* 1* 1 Martin Luther King Day 3rd Monday in January Jan 17* 16* 15* 20* President’s Day 3rd Monday in February Feb 21* 20* 19* 17* Memorial Day Last Monday in May May 30* 29* 27* 26* *=Monday 15.2. Applicable Overtime Rates Should employees be required by their supervisor or department head to work on a holiday listed above, the employees shall receive regular pay plus the appropriate premium pay or compensatory time off for the hours worked on the holiday. Such employees shall receive no other compensation for working on the holiday. The Water Treatment Operators whose holiday falls on one of their regular scheduled consecutive off days shall observe the holiday on their following scheduled work day. 15.3. Floating Holidays 15.3.1. The parties agree to two (2) additional holidays designated as floating holidays for Employees to take at their convenience with the prior approval of the department head. 15.3.2. All "floating" holidays shall be requested in advance from the appropriate department head or division manager. Enough employees shall remain at work during "floating" holidays so that the City's business may be conducted. 15.3.3. "Floating" holidays shall accrue on July 1 and must be taken by the following June 30 or the hours will be forfeited. 15.4. Observation The workweek for Thanksgiving week for all employees (with the exception of Water Treatment Operators) shall be Monday through Thursday. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 21 16. VACATION 16.1. Computation and Accrual of Vacation 16.1.1 . Accrual Schedule Vacation leave shall accrue as follows: Through the 4th year of employment 90 hours Through the 5th year of employment 120 hours Through the 6th year of employment 128 hours Through the 7th year of employment 136 hours Through the 8th year of em ployment 144 hours Through the 9th year of employment 152 hours Through the 10th year of employment 160 hours Through the 11th year of employment 168 hours Through the 12th year of employment 176 hours Through the 13th year of employment 184 hours Through the 14th year of employment 192 hours Through the 15th year of employment 200 hours Through the 16th year of employment 210 hours 16.1.2. Accrual Rate Employees shall accrue paid vacation leave at periodic rates equivalent to the annual schedule above. 16.1.3. Vacation Credit Accrued vacation time shall be credited to each employee's account during the pay period in which it accrues. Vacation leave for new employees will be granted no earlier than six (6) months after the day of employment, or the end of probation, whichever is the later date. Vacation shall be taken at the convenience of the City with the approval of the department head. Where possible, such vacations should be taken annually and not accumulated from year to year. Employees shall be able to carry over vacation accrual from one year to the next, cumulatively, up to a maximum of seventy- eight (78) times the then-current pay period rate of vacation accrual. This maximum is waived, however, until July 31, 2004. At that time, if the employee has vacation accrual at, or in excess of, the cap, the employee’s vacation accrual balance shall be paid down to 52 times the then-current pay period rate of vacation accrual. Future accrual which exceeds the aforementioned maximum shall be paid to the employee as it is accrued. In special cases where it has not been possible, due to work load or other factors, for the employee to use his or her vacation before reaching a maximum, it shall be within the department head’s authority to authorize cash payment in lieu of time off. For employees hired on and after December 1, 2017, the employee may accumulate up to a maximum of three hundred (300) hours. Vacation accrual which exceeds the maximum allowed shall be paid to the employee in the following pay period in which it is accrued until the accrued balance is below the maximum. 16.2. Termination Employees who terminate their employment with the City after six (6) months of full time employment shall be paid for all accrued vacation, if any, and the prorated portion of their unused vacation. 16.3. Conversion An employee may convert any accrued vacation into pay with the approval of the Department Head or City MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 22 Manager. 17. LEAVE OF ABSENCE 17.1. Leave of Absence Without Pay 17.1.1. Conditions After all available leave benefits, including vacation, sick leave, compensatory time and any other leave benefits have been completely used, a regular employee, not under suspension, may make application for leave without pay. An employee requesting leave of absence without pay must do so in writing stating specifically his or her reason for the request, the date when it is desired to begin the leave and the probable date of return. 17.1.2 . Merit and Extent If the department head and the City Manager agree that such leave is merited and in the interests of the City, leave may be granted by the City Council for a period not to exceed one (1) year following the date of expiration of all other leave benefits. No employment service credits or fringe benefits such as sick leave, vacation, health insurance, retirement or any other benefits shall accrue to any employee on leave of absence without pay. 17.1.3. Extension At the end of such leave, if the employee desires additional leave, written application must be made to the City Manager’s stating the reasons why the additional leave is required and why it would be in the best interests of the City to grant such leave of absence. If in the City Manager’s opinion, such additional leave is merited and would still preserve the best interests of the City, the City Council may approve such extensions of the leave of absence for a period not to exceed an additional six (6) months. 17.1.4. Failure to Return If the employee does not return to work prior to or at the end of such leave of absence or extension of leave of absence, the City shall consider that the employee has terminated his employment with the City. Such an employee shall not accrue any vacation benefits, either in cash reimbursement or time off, and shall not be entitled to any compensation upon termination. 17.1.5. Violation Any employee who engages in outside employment during said leave of absence, without prior notification and approval of the employee's department head and the City Manager’s, shall be subject to immediate termination. Likewise, employee who falsifies the reason for the request for the leave of absence shall be immediately terminated. 17.1.6. Notice of Return Any employee on leave of absence must give the City at least seven (7) days written notice of the employee's intent to return to work. 18. JURY DUTY 18.1. Notification An employee required for jury duty shall immediately notify his supervisor or department head. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 23 18.2. Time Off When required to serve on a jury, all employees shall have time off for a period of actual service required on the jury. Employees shall receive the regular pay while serving on jury duty, provided all jury fees paid to the individual employee, less allowed automobile expenses, are deducted from his normal salary. 19. MILITARY LEAVE 19.1. Section 395 Military leave with pay shall be granted in accordance with Section 395 of the Military and Veterans code. 19.2. Salary An employee who has been in the City employment for a period of not less than one (1) year, upon, being called for temporary military duty, shall receive full salary for a period not to exceed thirty (30) calendar days in a calendar year. Time spent in military service shall be considered City employment for computation of employment related benefits. 20. SICK LEAVE, INDUSTRIAL LEAVE, AND BEREAVEMENT LEAVE 20.1. Sick Leave Sick leave shall not be construed as a right, which an employee may use at his or her 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. 20.1.1. A yearly evaluation period for the use of sick leave begins on the first payday on or after January 1 of each year. At the end of each evaluation 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. The parties agree that sick leave taken as Personal Business Leave shall not be considered as part of the amount used for these purposes. 20.1.2. A decision to convert sick leave according to the policy below shall be made by March 31: 20.1.2.1. If the employee has used more than three, but not more than six days of sick leave, excluding time spent on bereavement, he or she would have the following options: 20.1.2.1.1 . Carry over the accrual and add it to his or her sick leave balance. 20.1.2.1.2 . Convert, only to the extent that his/her balance is more than zero at the beginning of the new year, one-fourth of the accrual to vacation or convert one-fourth to cash (but no combination of these two); unused, unconverted leave would then be added to the employee's sick leave balance. 20.1.2.2. If the employee has used no more than three days of sick leave, including time spent on bereavement, he or she would have the following options: 20.1.2.2.1 . Carry over the accrual and add it to his or her sick leave balance. 20.1.2.2.2 . Convert, only to the extent that his/her balance is more than zero at the beginning of the year, one-third of the accrual to vacation or MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 24 convert one-third 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. 20.2. Procedure 20.2.1 . Notification As soon as an employee is aware he will be unable to report for work at the assigned time due to illness or disability, he shall notify his immediate supervisor or department head. 20.2.2 . Authorization Process In order to receive pay for sick leave, the employee, upon returning to work, must immediately complete a Leave Request form indicating the nature of the illness or disability. The form must be signed by the employee, his immediate supervisor and department head and forwarded to Finance for processing. 20.2.3. Daily Notification An employee is required to notify his immediate supervisor or department head each day of his absence unless otherwise directed by his department head. 20.2.4. Doctor's Verification A doctor's certificate shall automatically be required for sick leave requested because of illness of more than three (3) days duration. 20.3. Probationary Period Sick leave may be taken during the probationary period but only in such amount as an employee would have earned if on regular status. If the employee does not become regular, all paid sick leave must be reimbursed to the City at the time of termination of employment or it shall be deducted from the employee's final paycheck. In the event no sick leave is taken during the probationary period, a credit of six (6) days leave or more, as accrued, will be credited to the employee when he attains regular status. 20.4. Reasons for Use of Sick Leave Sick leave shall be granted for the following reasons: 20.4.1. Personal Personal illness or physical incapacity resulting from causes beyond the employee's control. 20.4.2. Non-Personal Up to 12 weeks per year for the illness of a member of the employee's immediate family (father, mother, sister, or brother), or members of the employee's household (husband, wife, registered domestic partners under CA law, and children) that require the employee's personal care and attention. 20.4.3. Quarantine Enforced quarantine of the employee in accordance with the Health Department regulations. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 25 20.4.4. Doctors' Appointments Medical, dental, and optical appointments. 20.4.5. Personal Business Personal business not to exceed a maximum of thirty (30) hours during any one (1) fiscal year wherein the City will not question usage. Personal business means those items of personal business that can only be taken care of during regular working hours of the employee. Personal business leave shall be approved or disapproved by the department head only in case of necessity. Employees must provide advance notice for Personal Business Leave whenever possible. Departments are to use the earning code PB for this purpose. Sick Leave taken as Personal Business Leave shall not be taken into consideration in employee performance evaluations. 20.5. Restrictions on Sick Leave An employee shall not be granted sick leave for the following reasons: 20.5.1. Self-Inflicted Disability arising from any sickness or injury purposely self-inflicted, or caused by his or her own willful misconduct. 20.5.2. Leave of Absence Sickness or disability sustained while on leave of absence, other than regular vacation leave. 20.5.3. Non-City Employment Disability or illness arising from compensated employment other than with the City. 20.6. Accrual and Use Sick leave with pay shall accrue to Employees at the rate of one (1) working day (ten (10) hours) for each calendar month of paid employment, with unlimited accumulation. Sick leave shall not be taken in units of less than one-half (1/2) hour. For employees hired on or after December 5, 2017, sick leave may be accumulated up to a maximum of one-thousand and forty hours (1040). Sick leave accrual which exceeds the maximum accumulation allotted 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 one thousand and forty hours (1040). 20.7. Payment for Accumulated Sick Leave 20.7.1. Entitlement Only employees hired prior to December 5, 2017 shall be entitled to payment at his or her current rate of salary upon death or retirement for fifty percent (50%) of accumulated sick leave, provided: 20.7.1.1. Requirement In the case of retirement for disability arising out of and in the course of employment, the employee shall have been employed by the City for at least five (5) consecutive years of service. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 26 20.7.1.2. Voluntary Retirement In the case of voluntary retirement for any other cause, such employee shall have been employed by the City for at least ten (10) consecutive years of service. 20.7.1.3. Death In the case of death, the employee has attained permanent status. 20.7.2. Conversion of Accrued Sick Leave Employees hired prior to December 5, 2017 may convert his or her accrued sick leave balance to 50% of the cash value for hours in excess of three hundred twenty (320) hours to a maximum payment of two hundred forty (240) hours. For example, if an employee has 800 hours of sick time and the employee requests the conversion of 480 hours to cash, then the employee would receive a cash payment equivalent to 240 hours of sick time leaving them with a sick leave balance of 320 hours. 20.7.3. Conversion to Service Credit Upon Retirement Pursuant to the terms of the City's contract, as amended, with CalPERS, upon voluntary retirement employees hired prior to December 5, 2017 may convert 100% of his or her accrued sick leave balance, less any amount converted to cash under the provisions of Section 20.7.2., to retirement service credit. Employees hired on or after December 5, 2017, may convert up to a maximum of six (6) months of sick leave accruals pursuant to PERS guidelines (1040 hours). 20.7.4. Termination Employees hired prior to December 5, 2017 who terminate City employment for reasons other than death or retirement shall be entitled to payment at his current rate of salary for fifty percent (50%) of accrued sick leave in excess of three hundred and twenty (320) hours, up to and including eight hundred (800) hours, not to exceed, in any case, a maximum of thirty (30) days pay. Employees hired on and after December 5, 2017, shall not be entitled to any pay out of sick leave. 20.8. Sick Leave During Vacation If an employee becomes ill or injured while on vacation, he or she may, by completing a Leave Request Form, use accrued sick leave time in lieu of vacation time for the period of disability. 20.9. 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: 20.9.1. Rate of Pay An Employee granted industrial leave shall continue to be compensated at his regular rate of pay in lieu of temporary disability payments. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 27 20.9.2. Restrictions 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 20.9.1. 20.9.3. Duration 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. 20.9.4 After 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. 20.9.5. Conversion to LTD Prior to the end of the six (6) months of paid leave pursuant to section 20.9.3., 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 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 allowed by law for such employee for an additional six (6) month period. An employee receiving long-term disability can 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 he or she will be returning to work prior to the expiration of the six-month period in which the employee has been on long term disability. 20.9.6. Vacation and Sick Leave Except as provided in 20.9.2. above, no employee shall have accrued sick leave deducted while on industrial leave. Vacation and sick leave shall accrue for an employee on industrial leave. 20.9.7. Expiration Industrial leave shall expire when one of the following conditions occurs: 20.9.7.1. Employee is able to return to work to his regular position. 20.9.7.2. 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 CalPERS. 20.9.7.3. The employee's condition is determined to be permanent or of an extended duration. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 28 20.9.7.4. The degree of disability precludes continued employment by the employee in his/her present position. 20.9.7.5. After twenty-six (26) weeks of industrial disability payments. 20.9.8. Physician Assignment Physicians may be assigned in compliance with the Health and Safety Code and the Workers' Compensation Laws of the State of California (Ref.: Section 4600 - Labor Code). 20.10. Bereavement Leave An employee may be permitted to take up to four (4) ten (10) hour days of Bereavement Leave in the event of the death of a member of his or her immediate family. "Immediate family" member is herewith defined as a mother, father, brother, sister, spouse, child, mother-in-law, father-in-law, grandparents, grandparents-in-law, registered domestic partner under California law, or relative living within the employee's household. Persons in loco parentis may also be considered under certain circumstances. Such leave shall not be charged against the employee's sick leave or vacation. In addition to bereavement leave, an employee may request up to two (2) ten (10) hour 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 his or her ability to convert the balance. 21. FRINGE BENEFIT ADMINISTRATION 21.1. Administration The City reserves the right to select the insurance carrier or administer any fringe benefit program that now exists or may exist in the future during the term of this Memorandum of Understanding. 21.2. Selection of Funding Method In the administration of the fringe benefit program, the City shall have the right to select any insurance carrier or other method of providing coverage to fund the benefits included under the terms of this Memorandum of Understanding, provided that the benefits of the employees shall be no less than those in existence as of the implementation of this agreement. 21.3. Changes If, during the term of this Memorandum of Understanding, any changes of insurance carrier or method of funding for any benefit provided hereunder occurs, the City shall notify the Union prior to any change of insurance carrier or method of funding the coverage. 21.4. Deferred Compensation Effective August 1, 2021 the City shall provide $100.00 per month in deferred compensation to each employee. Effective January 1, 2022 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. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 29 22. LIFE INSURANCE 22.1. Coverage The City shall maintain in effect for the term of this agreement a life insurance plan(s) covering employees covered by this agreement. The coverage provided by the City for the employee shall be equal to eighteen (18) months of the employee's monthly base salary. 23. HEALTH BENEFITS 23.1. Flexible Benefit Plan 23.1.1. Definition Effective August 1, 1993, the City's existing Cafeteria Benefit Plan (CBP) was converted to an IRS Section 125 Flexible Benefit Plan (FBP) administered by either the City or its designee. This Plan can be used by the employee to pay, to the extent available, for qualified benefits as determined by the IRS. The employee understands that, in the event the total premiums and/or expenses for qualified benefits selected by him/her exceed the amount of the FBP, the excess shall be deducted from pre- tax wages of the employee. 23.1.2. Amount of Monthly Benefit Effective January 1, 2018, The City will maintain the Flexible Benefit Plan contribution in an amount equal to one thousand five hundred six dollars ($1,506). Effective January 1, 2022 the Flexible Benefit Plan contribution amount will be reduced to one thousand five hundred dollars ($1,500). New Employees hired after December 4, 2017 shall not be entitled to cash out any portion of the Flexible Benefit Plan Contribution. Effective January 1, 2022 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 21.4). The City agrees to a limited reopener to discuss a potential increase to the FBP in the final year 2024 of this MOU. Any increase negotiated would be effective January 1, 2024. The bargaining group must approach the Human Resources Department Division to request a reopener if it is desired at that time. The mutual agreement of the parties is required for any change. 23.1.3. Eligibility In order for an employee to be eligible for the FBP in any given month, he/she must be on payroll on the first work day (excluding recognized paid City holidays) of that month. A new employee will be eligible for the full FBP applicable to his/her bargaining unit if he/she begins work on the first work day (excluding recognized paid City holidays) of the month. An employee whose date of hire is on the second work day (excluding recognized paid City holidays) of the month or thereafter will not be eligible for the FBP 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 he/she has not met the qualifying work time for eligibility for the FBP. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 30 23.1.4. Termination The City will not be responsible for payment of any qualified benefits on behalf of an employee following the month of termination. If an employee represented by the IBEW wishes to continue his/her qualified benefits, advance payment for such qualified benefits will be deducted from the employee's final pay. 23.2. Retirement Employees hired prior to December 4, 2017, who, at the time of retirement from the City of Azusa, have at least twenty (20) cumulative years of service with the City of Azusa, shall have the opportunity to choose one of the following options. The employee must indicate his or her choice within 30 days of retirement from the City of Azusa and such choice shall be considered irrevocable: 23.2.1.1 City-Paid Health Insurance. Beginning with the first month after retirement, the City will reimburse monthly to the employee, until the employee passes away, an amount equal to the single-coverage premium in the health insurance program of the employee's choice, in the CalPERS health plans. The amount of the City's contribution shall vary, up or down, depending on periodic changes in rates. The current CalPERS Public Employee’ Medical and Hospital Care Act (PEMHCA) minimum statutory contribution that the City pays directly to CalPERS shall be considered to be part of the portion paid by the City. 23.2.1.2 Opt Out of the City Paid Health Insurance Plans by providing proof of other coverage for the employee and their dependents to the City’s Third Party Administrator. An employee who opts out of the City Health Plans will receive a monthly health reimbursement equal to the monthly single coverage premium in the PERSCare health plan (Effective January 1, 2022 the PERSCare health plan will change to PERS Platinum). The payment of these funds will be deposited into a Health Reimbursement Arrangement Account with the City’s Third Party Administrator. 23.3 Health Reimbursement Arrangement (HRA) For Employees hired on and after December 5, 2017, the City shall establish a Health Reimbursement Arrangement Account (HRA) for the employee at the time of hire for the reimbursement of medical premiums and IRS approved medical expenses in retirement. Upon employment, or as soon as possible thereafter, the City shall deposit an initial contribution of $2,000 into a HRA selected by the City. The City shall additionally deposit the following amounts in the second pay period in July of each year (with year 1 deposit being prorated in accordance with the anniversary date of the employee appointment): Deposit of $1,000 dollars in years 1-5 of continuous service Deposit of $2,000 dollars in years 6-10 of continuous service Deposit of $3,000 dollars in years 11 until separation or retirement/disability Employee shall be employed for 5 consecutive years to be 100% vested. Any employees who are not 100% vested under the vesting schedule at the time of separation shall forfeit their unvested funds. In the event of the death of the employee, the employee spouse and/or qualifying dependents, any vested funds remaining in the account shall be forfeited. In the event the employee opts out of participation in the Plan, all vested and unvested funds shall be forfeited. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 31 24. EDUCATIONAL REIMBURSEMENT AND LICENSES, REPAYMENT OF APPRENTICE LINE MECHANIC TRAINING, COMPUTER LOAN 24.1. Tuition Reimbursement The City’s Tuition Reimbursement Administrative Policy, as of April 2017, is incorporated herein and applied to unit members for tuition reimbursement. 24.2 Repayment of Apprentice Line Mechanic Training 24.2.1 Apprentice Line Mechanics shall be required to repay the City for training costs if they leave City employment within three (3) years of completing the Apprentice Line Mechanic Training Program. Repayment of training costs shall be calculated as follows: Within one (1) year employee repays 100% Within two (2) years employee repays 66 2/3% Within three (3) years employee repays 33 1/3% After three (3) years employee repays 0% 24.3. Computer Loan Program 24.3.1 The Computer Loan Plan described below shall be made available to full time regular employees. Eligibility is limited to employees who have completed their initial probation period with the City. 24.3.2 The equipment configuration shall be appropriate to the employee's position and career with the City. 24.3.3. It is the employee's responsibility to negotiate the price for the equipment and to bring a copy of the order/quote to the City for approval prior to purchase. Upon approval, the City will issue payment in the vendor’s company name. 24.3.4. The employee shall apply for a loan with the City 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 two years and the aggregate value of all loan(s) shall not exceed $5,000 per employee. In order for an employee to receive a loan under the Plan for equipment upgrades for purchase of equipment components which are part of the City approved minimum configuration, the employee must certify that he/she already owns the remaining components required to meet the minimum equipment configuration. 24.3.5. Any remaining loan balance must be paid in full at 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. 25. UNIFORM STANDARDS The following standards shall apply to employees as determined by the appropriate management persons: 25.1. Presentability An employee may be permitted to wear denim ("Levi") pants if he or she returns the standard issue pants to the department. If an employee desires to wear a ball cap, it shall be a department issued hat. The presentability of such clothing will be determined by management. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 32 25.2. Warm Weather During the summer months and/or extremely warm weather, the field crew employees may wear T-shirts (but not tank tops) while working underground or on the ground. The color of the T-shirt shall be a solid pattern without logos of any type or with appropriate department City logo. The presentability of such clothing will be determined by management. This section does not apply to employees who are required to wear long sleeve shirts, pants or flame retardant uniforms for safety reasons, as determined by management. 25.3. Shirts Shirts will be standard issue uniforms with the appropriate City logo and employee's name. The fabric of these shirts may be cotton or appropriate material to meet OSHA requirements. 25.4. Field Service Representatives Field Service representatives may wear shorts and stockings. The color shall be a solid pattern. The presentability of such clothing will be determined by management. 25.5. Customer Service A committee comprised of Local 18 staff and members along with City Management determine the parameters, including style, numbers of uniforms and other issues of importance. Uniforms will be provided by a professional uniform company and employees will be professionally fitted for their uniforms by this company. 25.6. Uniform Replacement City-issued uniforms shall be replaced periodically to maintain flame retardant properties, if applicable, and presentability, as determined by management. City agrees to maintain a surplus of uniforms in multiple sizes on hand to avoid long lead times for new or replacement uniforms. The city will provide a reimbursement to the purchase of uniforms from an outside source with proof of purchase. 26. SOLE AND ENTIRE MEMORANDUM OF UNDERSTANDING 26.1. Intent It is the intent of the parties hereto that the provisions of this Memorandum of Understanding shall supersede all prior agreements and Memoranda of Agreement, Memoranda of Understanding or contrary salary and personnel resolutions or administrative code, provisions of the City, oral or written, expressed or implied, between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This Memorandum of Understanding is not intended to conflict with federal or state law. 26.2. City Rules and Regulations Notwithstanding the provisions of section 26.1, there exists within the City certain personnel rules and regulations and departmental rules and regulations. To the extent that this agreement does not specifically contradict these personnel rules and regulations or departmental rules and regulations or City ordinances, they shall continue, subject to being changed by the City in accordance with the exercise of City rights under this agreement and applicable state law. MEMORANDUM OF UNDERSTANDING, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 33 27. WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT 27.1. Agreement Not to Negotiate During the term of this Memorandum of Understanding, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours and terms and conditions of employment, whether or not covered by this Memorandum of Understanding or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this Memorandum. Regardless of the waiver contained in this Article, the parties, may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this Memorandum. 28. SEPARABILITY Should any provisions of this Memorandum of Understanding be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this Memorandum of Understanding shall remain in full force and effect for the duration of this Memorandum of Understanding. Should this language render invalid any provisions of this Agreement, then meet and confer sessions shall immediately commence in efforts to agree upon replacements for such invalidated provisions. 29. MAINTENANCE OF EXISTING BENEFITS AND CONDITIONS 29.1. Remain In Force Except as provided herein, all wages, hours, and economic terms and conditions of employment presently enjoyed by affected employees shall remain in full force and effect during the entire term of this Memorandum of Understanding unless mutually agreed to the contrary by both parties hereto. 29.2. 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 Memorandum of Understanding constitute additions to the total compensation received by affected employees. 30. LONG TERM DISABILITY INSURANCE 30.1 The City shall maintain in effect for the term of this agreement a long-term disability plan covering employees set forth herein. Said plan shall provide an employee with a maximum of two-thirds (2/3) of his/her base salary. An employee may utilize his/her accrued sick leave, vacation, and/or compensatory time to supplement the LTD payment so as to receive 100% of his/her base salary. 30.2. The LTD plan shall: 30.2.1. Provide 66.67% of the employee's monthly salary. 30.2.1 Commence after a 30 calendar day waiting period and provide a benefit to age 65. 30.3 For the first 30 days of non-job related illness or injury, the employee will use accrued sick leave, compensatory time or vacation leave; At no time will an employee receive more than 100% of their base pay. 30.2.1. 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, LOCAL 18 OF THE IBEW, AUGUST 1, 2021 to July 31, 2025 34 31. TERM OF MEMORANDUM OF UNDERSTANDING The term of this Memorandum of Understanding (MOU) shall commence August 1, 2021 and shall continue in full force and effect until July 31,2025. 32. RATIFICATION AND EXECUTION The City and the Union acknowledge that this Memorandum shall not be in full force and effect until ratified by the Union membership and adopted by the City Council of the City of Azusa. Subject to the foregoing, this Memorandum of Understanding is hereby executed by the authorized representatives of the City and the Union. 35 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AZUSA AND THE INTERNATIONAL BROTHERHOOD ELECTRICAL WORKERS AND AUGUST 1, 2021 THROUGH JULY 31, 2025 FOR THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 18, UNIT 64 By: ___________________________________________________________ Date: ________________ Brian D’Arcy, Business Manager By: ___________________________________________________________ Date: ________________ Ken Delgado, Business Representative By: ___________________________________________________________ Date: ________________ Charles Alvarez, Chair, Unit 64 By: ___________________________________________________________ Date: ________________ Brandi Bommarito, Vice Chair, Unit 64 By: ___________________________________________________________ Date: ________________ Robert Nodarse, Recorder, Unit 64 By: ___________________________________________________________ Date: ________________ Santiago Cabral, Unit 64 By: ___________________________________________________________ Date: ________________ Paul Branconier, Unit 64 By: ___________________________________________________________ Date: ________________ Angel Solache, Unit 64 By: ___________________________________________________________ Date: ________________ Gilbert Carlos, Unit 64 FOR THE CITY OF AZUSA By: ___________________________________________________________ Date: ________________ Sergio Gonzalez, City Manager By: ___________________________________________________________ Date: ________________ Marco Martinez, City Attorney Best Best & Krieger By: ___________________________________________________________ Date: ________________ Jeffrey Cornejo, City Clerk By: ___________________________________________________________ Date: ________________ Talika Johnson, Director of Administrative Services By: ___________________________________________________________ Date: ________________ Nico DeAnda-Scia, Deputy City Manager 36 I N D E X Advisory Arbitration (7) Automatic Payroll Deposit (18) Bereavement Leave (26) Bilingual Premium (17) Callback Pay (12) City Rights (1) Compensatory Time off (11) Computer Loan Program (29) Deferred Compensation (26) Disability Insurance (31) Dues Deductions (2) Education Incentive Premium (17) Employee Organizational Rights and Responsibilities (2) Bulletin Boards (3) Dues Deductions (2) Indemnification (2) Maintenance of Membership (2) Newly Hired Employees (2) Rights, Powers and Authority (3) Union Organization (3) Field Service Representatives (14) Flex Staffing (15) Apprentice Line Mechanic and Line Mechanic Helper (15) Customer Service Representatives (15) Meter Test Series (16) Water Distribution Workers and Production Operators (15) Flexible Benefit Plan (27) Amount of Monthly Benefit (27) Definition (27) Floating Holidays (18) Footwear (5) Fringe Benefit Administration (26) Changes (26) Deferred Compensation (26) Selection of Funding Method (26) Grievance and Appeals Procedure (5) Advisory Arbitration (7) Appeal of Disciplinary Action (5) Burden of Proof (6) Continuance (7) Findings of the Personnel Board (6) Further Discussion (5) Hearings (6) Informality (6) Investigation (5) Joint Accusations (7) Power to Examine (6) Resolution and Complaints (5) Unexcused Absences (6) 37 Health Benefits (27) Retirement (28) Holidays (18) Applicable Overtime Rates (18) Designated Holidays (18) Thanksgiving Week (19) Hours of Work (10) Intent of Article (10) Timekeeping Interval (10) Water Treatment Operators (15) Workweek/workday (10) Industrial Leave (24) Conversion to Ltd (25) Duration (25) Expiration (25) Rate of Pay (25) Restrictions (25) Job Security (18) Jury Duty (21) Leave of Absence (20) Notice of Return (21) Outside Employment During (23) Life Insurance (27) Long Term Disability Insurance (31) Longevity Premium (17) Maintenance of Existing Benefits and Conditions (31) Military Leave (21) No Strike - No Lockout (9) Prohibited Conduct (3) Union Responsibility (3) Nondiscrimination (4) Anti-discrimination (4) Gender (4) Protection of Rights (4) Overtime (11) Compensatory Time off (11) Limitation of Authority (12) Priority (12) Rate of Compensation (11) Timekeeping Interval (11) Overtime Meal Policy (12) Probationary Employees (8) Discharge (8) Probationary Basis (8) Probationary Reinstatement (8) Ratification and Execution (31) Recognition (1) Reinstatement (8) Previous Service Credit (8) Probationary Period (9) Recommendation of Department Head (8) Retirement (16) 38 Employer Paid Member Contributions (16) Service Credit for Unused Sick Leave (16) Two Year Additional Service Credit (16) Safety and Health (5) Federal and State Laws (5) Footwear (4) Weather and Air Quality (4) Salary and Compensation and Retirement (14) Apprentice Line Mechanic and Line Mechanic Helper (15) Bilingual Premium (17) Education Incentive Premium (17) Job Security (18) Longevity Premium (17) Meter Test Series (16) Pay Increases (14) Retirement (16) Separability (30) Shop Stewards. (3) Sick Leave (21) Accrual and Use (23) Authorization Process (24) Conversion of Accrued Sick Leave to Cash (24) Conversion to Service Credit upon Retirement (24) Daily Notification (22) Doctor's Verification (22) Notification (22) One-fourth Conversion (22) One-third Conversion (22) Payment for Accumulated Sick Leave (24) Personal Business (23) Probationary Period (23) Reasons for Use (22) Termination (24) Vacation, Use of Sick Leave During (24) Sole and Entire Memorandum of Understanding (30) City Rules and Regulations (30) Intent (30) Standby Pay (12) Term of Memorandum of Understanding (31) Tuition Reimbursement (28) Uniform Standards (29) Field Service Representatives (30) Presentability (29) Shirts (30) Warm Weather (33) Vacation (19) Accrual Rate (19) Accrual Schedule (19) Conversion (20) Termination (20) Vacation Credit (19) Waiver of Bargaining During Term of this Agreement (30) Working out of Classification (13) 39 Absence (13) Lead Line Mechanic (14) Pay Range (13) Restriction (13) Special Acting Pay (13) Workweek/workday (10)