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RES-10006 Memorandum of Understanding Water Department Employees' AssociationRESOLUTION NO. 10006 I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE WATER DEPARTMENT EMPLOYEES ASSOCIATION (WDEA), CONCERNING WAGES, HOURS, AND OTHER CONDITIONS OF EMPLOYMENT EFFECTIVE JULY 1, 2005 THROUGH JUNE 30, 2007 AND REPEALING RESOLUTION NO. 9637 AND AMENDMENTS THERETO FOR SAID EMPLOYEES. WHEREAS, the City of Orange, hereinafter referred to as CITY, and the Water Department Employees Association hereinafter referred to as WDEA, have met and consulted in accordance with requirements of the Meyers-Milias-Brown Act; and WHEREAS, CITY and WDEA have determined wages, hours and other conditions of employment effective July 1, 2005 through June 30, 2007and repealed Resolution No. 9637 and amendments thereto for said employees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached Memorandum of Understanding (MOU) is approved and incorporated by reference as Exhibit A as though fully set forth herein, and furthermore that staifis authorized to adjust the departmental salary and benefit accounts in the FY 2005/06 budget to reflect the cost of the contract provisions. ADOPTED this 11 th day of October, 2005. I I Exhibit A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE WATER DEPARTMENT EMPLOYEES' ASSOCIATION July 1, 2005 through June 30, 2007 I iii WDEA TABLE OF CONTENTS I Article No. Article Title Page No. I Recognition 1 II Non-Discrimination 1 III Salaries 1 Basic Compensation Plan, Salary Schedule, Hourly Rate Part-Time Employees, Beginoing Rates, Service, Advancement within Schedule, Reduction in Salary Steps, Bilingual Assignment, Shift Bonus, Certification Bonus, Special Assigoment, Performance Evaluation IV Work Week 5 V Probation 5 VI Promotion 6 VII Demotion 6 VIII Reassignment of Compensation Ranges 6 IX Working Out of Class 7 X Overtime/Compensatory Time/Callback 8 XI Holidays 10 XII Vacation 11 XIII Part-Time and Temporary Employee 12 Eligibility for Fringe Benefits I XIV Leaves of Absence 13 Leave of Absence Without Pay, Personal Necessity Leave, Jury Duty, Military Leave, Sick Leave, Family Leave, Bereavement Leave, Industrial Leave, Family Care & Medical Leave XV Fringe Benefit Administration 19 XVI Health Benefits 20 Health Insurance, Life Insurance, Long Term Disahility, State Disability Insurance Article No. Article Title Pae:e No. XVII Educational Assistance Program 22 XVIII Retirement 22 XIX Miscellaneous Provisions 23 Rideshare Incentive, Unifonns, Work Shoe Allowance, Eyeglass Replacement, Clothing Reimbursement, Breaks XX Travel Expense Allowed 24 XXI Safety and Health 25 XXII City Rights 25 XXIII Employee Organizational Rights and 27 Responsibilities XXIV Grievance and Disciplinary Appeals Procedure 28 XXV No Strike-No Lockout 30 XXVI WDEA Representatives 31 XXVII Layoff Procedure 32 XXVIII Sole and Entire Memorandum of Understanding 35 XXIX Waiver of Bargaining During the Term of this MOU 35 XXX Emergency Waiver Provision 35 XXXI Separability 36 XXXII Term of Memorandum of Understanding 36 XXXIII Ratification and Execution 36 Appendix "A" Monthly Salary Ranges 37 Ii I I Article I RECOGNITION SECTION 1. Pursuant to the provisions of the Employee Relations Resolution No. 3611 of the City of Orange, the City of Orange (hereinafter called the "City"), has recognized Water Department Employees' Association (hereinafter called the "WDEA") as the majority representation for the classifications described in Appendix "A" for the purpose of meeting its obligations under the Meyers-Milias-Brown Act, Government Code Section 3500, et seq., and the Employee Relations Resolution when City rules, regulations, or law affecting wages, hours or other terms and conditions of employment are amended or changed. Article II NON-DISCRIMINATION SECTION 1. The parties mutually recognize and agree to protect the rights of all employees herein to join and/or participate in protected WDEA activities in accordance with the Employer- Employee Relations Resolution and Government Code Sections 3500 et. seQ. SECTION 2. The City and the WDEA agree that they shall not discriminate against any employee because of race, color, sex, age, national origin, political or religious opinions, affiliations, mental and/or physical disability, marital status, veteran status, sexual orientation, or any other lawfully protected class. The City and the WDEA shall reopen any provision of this Agreement for the purpose of complying with any final order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions ofthis Agreement in compliance with state or federal anti-discrimination laws. SECTION 3. Throughout this Memorandum of Understanding the masculine gender shall be used, it shall be understood to include feminine gender. SECTION 4. The term "employee(s)" shall refer only to those employees covered by this Memorandum of Understanding. Article III SALARIES SECTION 1. BASIC COMPENSATION PLAN. There is hereby established a basic compensation plan for all members of the WDEA unit in any of the designated classifications of employment listed in this MOU and its attachments. SECTION 2. SALARY SCHEDULE. Salaries effective June 26, 2005 and June 25, 2006 for employees are listed in Appendix 'N. The salary schedules in Appendix 'A' are incorporated into the MOU as monthly amounts based on a 40-hour workweek and 80-hour work period. I SECTION 3. HOURLY RATE PART-TIME EMPLOYEES. A. For all employees who have a regular weekly work schedule of 40 hours, the equivalent hourly rate of pay shall be the monthly rate times 12 divided by 2,080 armualhours. The hourly rate for persons employed on a regular part-time or temporary basis in an equivalent classification shall be determined in the same marmer. In determining the hourly rate as herein provided, compensation shall be made to the nearest Y, cent. B. Regular part-time employees who are scheduled to work on an average of at least 20 hours per week on a year-round basis may be considered for advancement to the next higher step upon completion of hours of employment equal to the minimum number of months of service required by full-time employees. One thousand-forty hours 1,040 hours) of regular part-time employment shall equal six months' service. SECTION 4. BEGlNNlNG RATES. A new employee of the City of Orange shall be paid the rate shown in the Step "A" in the range allocated to the class of employment for which he has been hired, except that on the request of the department head under whom the employee will serve, and with the authorization of the Personnel Director, such employee may be placed in Step B", "C", "D", "E", or "F" depending upon the employee's qualifications. SECTION 5. SERVICE. The word service shall be defined to mean continuous, full-time service in an employee's present classification, service in a higher classification, or service in a classification allocated to the same salary range and having generally similar duties and requirements. A lapse of service by any employee for a period of time longer than 30 days by reason of resignation or for any length of time due to discharge shall serve to eliminate the accumulated length of service time of such employee for the purpose of this Memorandum of Understanding. An employee re-entering the service of the City shall be considered as a new employee, except that he may be re-employed in the same classification within one year and placed in the same salary step in the appropriate compensation range as he was at the time of the termination of employment. . SECTION 6. ADVANCEMENT WITHIN SALARY SCHEDULE. The following regulations shall govern salary advancement within ranges: A. Merit Advancement. An employee may be considered for advancement through the salary range upon completion of the minimum length of service as specified in section 6 (A) (3) below. Advancement through the salary range may be granted only for continuous, meritorious, and efficient service, and continued improvement by the employee in the effective performance of his duties. A merit increase shall become effective on the first day of the pay period following completion of the length of service required for such advancement. 2 I I 1) The department head shall file with the Personnel Director a Personnel Action Form and a completed Performance Evaluation form recommending the granting or denial of the merit increase and supporting such recommendation with specific reasons therefore. Disapproval from the Personnel Director, together with the reasons therefore, shall be returned to the department head. 2) The recommendation of the department head after the approval of the Personnel Director shall be forwarded to the Payroll Division of the Finance Department for change of payroll status. 3) Advancement through the pay range Step "A" through Step "F" shall occur in yearly increments. B. Special Merit Advancement. When an employee demonstrates exceptional ability and proficiency in the performance of his duties, the department head may recommend to the Personnel Director that said employee be advanced to a higher pay step without regard to the minimum length of service provisions contained. The Personnel Director may, on the basis of a department head's recommendation, approve and effect such advancement. C. Lemrth of Service Required When Advancement is Denied. When an employee has not been approved for advancement to the next higher salary step, he may be reconsidered for such advancement at any subsequent time. This reconsideration shall follow the same steps and shall be subject to the same action as provided in the above paragraph of this section. SECTION 7. REDUCTION IN SALARY STEPS. Any employee who is being paid on a salary step higher than Step "A" may be reduced by one or more steps for just cause upon the recommendation of the head of the department in which he is employed with the approval of the Personnel Director. Procedure for such reduction shall follow the same procedure as outlined for merit advancement in Section 6 and such employee may be considered for re-advancement under the same provisions as contained in Subsection (B) of Section 6. SECTION 8. BILlNGUAL ASSIGNMENT. Employees may be assigned by the department head to a Bilingual Assignment. Bilingual assignments shall be made on the following basis: A. The department head shall determine the number of Bilingual Assignment positions which are necessary based upon a demonstrable need and the frequency of use; B. All Bilingual Assignments must be approved by the Personnel Director or hislher designee; C. Employees receiving Bilingual Assignment compensation may be required to take and pass a proficiency test on an annual or as-needed basis, as determined by the Personnel Services Department; 3 D. No permanency or semonty may be obtamed m a tlllmgual Assessment and such assignment may be revoked at any time by the Personnel Director or by his designee; E. . No employee shall be required to perform a Bilingual Assignment on a regular basis or employ bilingual skills on a regular basis who is not receiving bilingual pay pursuant to this Section; and F. Such employees on Bilingual Assignment shall receive an additional $140 per month in addition to their regular salary for the duration of the assignment SECTION 9. SHIFT BONUS. All employees who are assigned to shifts that start between 1200 hours (12:00 p.m.) and 0600 (6:00 a.m.) shall receive a two percent (2%) bonus based upon the employee's base salary for all hours worked. Employees who are assigned shifts that start between 0600 hours (6:00 a.m.) and 1200 (12:00 p.m.) are not entitled to this compensation. SECTION 10. CERTIFICATION BONUS. Effective July 1 2005, upon proof of permanent/non- interim certification: A. Employees who possess a State of California Department of Health Services Grade ill Water Distribution Certificate shall receive a flat $125.00 per month bonus. B. Employees who possess a State of California Department of Health Services Grade II Water Distribution Certificate shall receive a flat $50.00 per month bonus. C. Employees who possess a State of California Department of Health Services Grade I Water Distribution Certificate shall receive a flat $50.00 per month bonus. An employee who possesses two (2) or more of the above certifications is eligible to receive only the highest grade-certificate bonus. There shall be no pyramiding of certificate bonuses. SECTION 11. SPECIAL ASSIGNMENT. The Public Works - Water .Division shall establish two (2) special assignments as Welders. Public Works Water Division employees covered by the terms and conditions of this agreement may be so assigned at the discretion of the Department head or designee. Water Division personnel so assigned and performing these and related duties shall receive $100.00 per month during the period of such special assignment SDecial Assilmment Guidelines. A. Water Division personnel assigned to positions specified in Section 10 above shall move on a step-to-step basis without changing anniversary date. B. All special assignments to positions set forth in Section 10 above of Water Division employees shall be made or revoked at the discretion of the Department head or designee. 4 I I C. The City's share of the employee's PERS contribution will not be included in computing the differential set forth in Section 10 above. D. There is no period of probation required in a special assignment and no permanency or seniority may be obtained in a special assignment. A regular full-time or part- time employee in a classification retains that current classification during special assignments. SECTION 12. PERFORMANCE EVALUATIONS. Any dispute as to the contents of the performance evaluation shall first be discussed with the immediate supervisor. If not resolved, the employee may appeal the disputed evaluation through the appropriate chain of command up to the department head whose decision shall be final and binding. Notwithstanding the paragraph above, in the event a substantial disagreement regarding the content of the performance evaluation continues, the employee may submit a clarifYing memorandum within 30 calendar days which shall become a part of the Performance Evaluation and shall be filed with the Performance Evaluation in the employee's personnel file in the Personnel Department. Article IV WORK WEEK SECTION 1. The regular workweek for all employees shall be 40 hours per week. SECTION 2. The department shall discuss changes in the established work schedule with the affected employees prior to the implementation of the change. Article V PROBATION SECTION 1. An employee initially appointed or promoted to a class shall serve a probationary period of 26 pay periods during which he shall have an opportunity to demonstrate suitability for the job. Under certain conditions, with the approval of the Personnel Director, the department head may, for just cause, extend the probationary period up to an additional 13 consecutive pay periods. The employee shall attain regular status in the class upon successful completion of the probationary period or any extension of the probationary period. An employee who does not satisfY the standards of the class during the probationary period shall be notified, in writing, and termination or demotion proceedings shall be initiated. Probationary employees shall not be entitled to appeal a termination or a demotion. 5 SECTION 2. Probationary employees are not entitled to compete in closed/promotional recruitment/selection processes of the City; they may, however, compete for any open/competitive recruitment/selection process. Article VI PROMOTION SECTION 1. SALARY STEP ASSIGNMENT. When an employee is promoted to a position of a higher classification, he may be assigned to Step "A" in the appropriate range for the higher classification; provided, however, that if such employee is already being paid at a rate equal to or higher than Step "A" in the appropriate range for the higher classification, he may be placed in the step in that appropriate salary range as will grant him an increase of at least one salary step but no more than three salary steps, at the discretion of the City Manager. SECTION 2. ELIGffiILITY LIST. When eligibles remain in higher bands of a current Eligibility List and the department head selects an eligible in a lower band, upon request of an unsuccessful candidate for promotion, the department head will ensure that the eligible candidates who remain in higher bands are notified of the reasons for their non-selection. Article VII DEMOTION SECTION I. When an employee is demoted to a position in a lower classification, the new salary rate shall be fixed in the appropriate salary range for the lower classification, in accordance with the following provisions: A. The salary rate shall be reduced by at least one salary step, and; B. The new salary rate must be within the salary range for the classification to which the employee is demoted. Article VIII REASSIGNMENT OF COMPENSATION RANGES SECTION 1. Any employee who is employed in a classification which is allocated to a different pay range shall retain the same salary in the new range as he previously had in the prior range, and shall retain credit for length of service acquired in the previously held step toward advancement to the next higher step in the new salary range; provided, however: 6 A. That if such retention shall result in the advancement of more than one step, the City Manager may, at his discretion, at the time ofreassignment, place the employee in a step which will result in an increase of only one step. I B. That if the reassignment shall be to a lower compensation range, the "F" step of which shall be lower than the existing rate of pay at the time of reassignment, the employee shall continue to be paid at the existing rate of pay until such time as the position shall be reassigned to a compensation schedule which will allow for further salary advancement, or until such time as the employee is promoted to a position assigned to a higher compensation range. C. That if the reassignment is to a lower compensation range, the "F" step of which is higher than the existing rate of pay, the employee shall be placed in that step of the lower compensation range which is equivalent to the existing rate of pay, and shall retain credit for length of service previously acquired in such step toward advancement to the next higher step. Article IX WORKING OUT OF CLASS SECTION 1. The City may work employees out of classification for up to 14 consecutive working days without additional compensation. SECTION 2. Working out of class assignments shall only be made for positions vacated due to illness or an approved leave of absence. SECTION 3. ACTING TIME PAY. A. An employee shall receive acting time pay at the "A" Step of the higher class, or 5% above the employee's regular salary, whichever is greater, for work performed in the higher classification on the 15th consecutive day out of class, and for each consecutive day thereafter, an employee works out of class. I B. The department head or designee shall assign the employee to work out of classification but shall notify the Personnel Director prior to the assignment. C. To qualify for working out of class pay, the employee must be performing all the significant duties of the higher-level position. SECTION 4. ELIGffiILITY PERIOD. During the 14 consecutive working day eligibility period before an employee is entitled to receive acting time pay, absence for any reasons, (sick leave, compensatory time, vacation), 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 acting pay. 7 Article X OVERTIME/COMPENSATORY TIME/CALL BACK SECTION 1. ENTITLEMENT FOR OVERTIME. All employees shall be entitled to overtime compensation for all hours worked in excess of 40 hours within the employee's regular workweek. SECTION 2. OVERTIME OR COMPENSATORY PAYMENT. Overtime shall be paid either in the form of pay at the employee's regular hourly rate or equal time off. The method of payment of overtime, either in cash or equivalent time off, must be authorized and approved by the department head. SECTION 3. OVERTIME ACCUMULATION. Overtime shall be accumulated at the rate of one hour of compensatory time for each one hour of overtime worked except for callback pay and premium (time and one-half) overtime. Callback time shall be accumulated in accordance with Sections 12 and 14. Premium (time and one-half) overtime shall be accumulated in accordance with Section 10. Only time actually worked (except callback) shall count in the computation of overtime, except that for the term of this agreement, the time off for holidays falling in any workweek, Monday through Friday, or callback in accordance with Sections 12 and 14, shall be counted towards the computation of overtime. SECTION 4. COMPENSATORY TIME ACCUMULATION. Compensatory time for overtime shall be accumulated in no less than one-quarter hour (lI.. hour) per day increments. When an employee works less than one-quarter hour (lI.. hour) per day of overtime, the employee shall not receive compensatory time for overtime of less than one-quarter of an hour (lI.. hour) per day worked. SECTION 5. ELIGIBILITY. In order to be entitled to overtime, such overtime must be authorized by the department head or his designee. SECTION 6. MAXIMUM COMPENSATORY TIME ACCRUAL. Any accumulated compensatory time accrued in excess of 80 hours per calendar year shall be automatically paid in the first pay period of the new calendar year. SECTION 7. USE OF COMPENSATORY TIME. A. Accumulated compensatory time off may be taken by an employee upon reasonable notice and prior approval of the department head or his designee. B. Accumulated compensatory time off shall be taken by an employee when directed by the department head or his designee; provided, however, that the department head or his designee gives an employee at least 10 days' notice prior to the date compensatory time off is to be taken. 8 I I C. In approving and directing compensatory time off, the department head or his designee will, as far as practicable, attempt to accommodate employee convenience to the degree possible in light of the operational requirements of the department. SECTION 8. PREMIUM OVERTIME COMPENSATION. If in the event of circumstances beyond the City's control (such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or other similar circumstances), an employee is required to hold over on his normal work shift, and to jointly work with another employee who has been called back pursuant to Sections 12 or 14 herein, then such employee shall be entitled to premium (time and one-half) overtime compensation. SECTION 9. Nothing herein is intended to limit or restrict the authority of the City to require any employee to perform overtime work. SECTION 10. Whenever two or more premium (time and one-half) compensation rates or overtime rates may appear to be applicable to the same hour or hours worked by any employee, there shall be no pyramiding or adding together of such premium (time and one-half) or overtime rates and only the higher applicable rate shall apply. SECTION II. When an employee is promoted to a higher classification not covered by this agreement, all compensatory time previously earned shall be paid in cash at the time of the promotion and at the employee's current rate of pay prior to promotion. SECTION 12. CALLBACK PAY. If, after completing his normal work shift, and after having left City premises and/or the employee's work location, an employee is required to be called back to work, the employee shall be compensated at the rate of I Y:z times the employee's equivalent hourly base rate for each hour compensated as callback. An employee shall be compensated for a minimum of two hours callback compensation or the equivalent time off at I Y:z times the actual hours worked, regardless of whether the employee actually works less than two hours. This provision applies even though an employee's regular workweek is not completed, but shall not apply to employees who are continuing on duty for their normal work shift. Section 14 below denotes compensation provided when an employee is eligible for both callback pay and standby pay. SECTION 13. STANDBY PAY. Employees, assigned by Management to standby status after their regular work hours, will receive two (2) hours per day (Mondays through Fridays) of standby pay at their straight time hourly rate, or three (3) hours per day for Saturdays, Sundays, and Holidays. SECTION 14. CALLBACK PAY PLUS STANDBY PAY. Employees who are required to be called back to work pursuant to Section 12 above, and who are assigned by Management to standby status after their regular work hours pursuant to Section 13 above, will receive two (2) hours per day (Mondays through Fridays) of standby pay at their straight time hourly rate,. or three (3) hours per day for Saturdays, Sundays, and Holidays plus a minimum of two (2) hours call back pay at their straight time hourly rate. Call back incidents of over two (2) hours worked shall be paid at the straight time hourly rate. Actual call back hours worked pursuant to this section shall count as time worked toward the 40 hours for qualifying for premium (time and one-half) overtime under FLSA. 9 Article XI HOLIDAYS SECTION 1. HOLIDAY DESIGNATION. Employees shall receive the following paid nine- hour holidays, except letter "I" below: A. January 1st (New Year's Day) B. The third Monday in February (president's Day) C. Last Monday in May (Memorial Day) D. July 4th (Independence Day) E. First Monday in September (Labor Day) F. November lIth (Veteran's Day). G. Fourth Thursday in November (Thanksgiving Day) H. Fourth Friday in November (Day after Thanksgiving) 1. One-half day before Christmas, if December 24th falls on a Monday through Thursday (Christmas Eve; 4.5 hours) J. December 25th (Christmas Day) K. A total of 9 hours of floating holiday time SECTION 2. FLOATING HOLIDAY. Effective January I each employee will have one nine 9) hour Floating Holiday accrued per calendar year. Floating Holiday requirements are as follows: A. Floating Holidays shall be taken as time off from work no later than the end of the calendar year in which it was accrued. B. The Floating Holiday is not accumulative. Employees who terminate their employment with the City prior to using the floating holiday shall receive cash reimbursement for said holiday. Employees who do not use the Floating Holiday during the calendar year it was accrued slllill forfeit it. C. Notwithstanding the above, the floating holiday shall be taken at the convenience of the City with approval of the department head or his designee. . D. Probationary employees are provided with, and are eligible to use, Floating Holiday and Holiday Hours according to the guidelines established in this Article, and/or, with approval of the Personnel Director. E. Employees hired after January 1 of each year shall receive a prorated portion of the 9 hours. SECTION 3. HOLIDAYS ON CERTAIN DAYS OF THE WEEK. In the event any of the above holidays falls on a Sunday, except the one-half day before Christmas, the following day will be taken in lieu of the actual date on which the holiday falls. When any of the above holidays fall on a Saturday, except one-half day before Christmas, the preceding Friday will be 10 I taken in lieu of the actual date on which the holiday falls. When any of the above holidays falls on an employee's regularly scheduled day off during the week, except the one-half day before Christmas, the employees' holiday bank will be credited with nine (9) hours of holiday compensatory time. Holiday compensatory time must be taken by the employee by the second 2nd) pay period ending in January of the year following the year in which it is accrued. SECTION 4. ELIGIBILITY TO RECEIVE HOLIDAY PAY. In order to be eligible to receive holiday pay, an employee must have worked, or be deemed to have worked because of a lawful absence, not including personal necessity leave, the employee's regularly scheduled day before and regularly scheduled day after the holiday. Should an employee fail to work the employee's regularly scheduled day before and after the holiday, the employee shall not be entitled to holiday pay. SECTION 5. HOLIDAY DURING VACATION. Should one of the holidays listed above fall during an employee's vacation period while an employee is lawfully absent with pay, the employee shall receive holiday pay and no charge shall be made against the employee's accumulated vacation. SECTION 6. DOUBLE TIME PAY. A. All employees required to work on a holiday listed above shall receive, with the approval of their supervisor, double time pay for hours worked on the holiday, or time off equal to the number of hours the employee actually worked on the holiday. Employees who work in excess of their regular number of hours on a holiday listed above, shall receive double time pay for all such hours actually worked. Employees shall receive no other compensation whatsoever for working on a holiday with the exception of the following: Water Plant Operators required to work and water division employees called-out on the following City-observed holidays shall receive holiday pay plus time and one-half for all hours worked on these holidays: Independence Day (July 4'\ Thanksgiving Day, and Christmas Day (December 25th). B. Employees whose regularly scheduled day off falls on the holiday or day observed in lieu of the holiday as set forth in this Article shall receive nine (9) hours of compensatory holiday time. Such holiday time must be taken by the end of each calendar year. I Article XII VACATION SECTION l. VACATION ACCRUAL. All full-time, regular employees who have one year's continuous service shall thereafter be entitled to a vacation per the following Vacation Accrual Chart. 11 After Year(s) of Service Vacation Hours Per Year 1 through 4 5 through 10 11 12 13 14 15 through 24 25 or more 80 120 128 136 144 152 160 200 SECTION 2. VACATION USAGE AND ACCUMULATION. Vacation shall be taken at the convimience of the City with the approval of the department head or his designee. Vacation should be taken annually and not accumulated from year to year, when possible. Vacation hours not in excess of the equivalent number of hours earned in the immediately preceding 24-month period may be accumulated with the permission of the department head and the Personnel Director. Employees shall not accumulate vacation in excess of the equivalent number of hours earned in the immediately preceding 24-month period. No vacation hours shall be accrued in excess of the equivalent number of hours earned in the immediately preceding 24-month period. Probationary employees accrue vacation, but may not use vacation until the successful completion of an initial probationary period, except in the event of a City Hall holiday closure with the approval of the Personnel Director. SECTION 3. VACATION CONVERSION. An employee may convert up to 50% of his current annual vacation accrual into pay, in lieu oftime off with pay, once a calendar year. An employee requesting such a conversion must meet the eligibility requirements as set forth in Section 1. SECTION 4. VACATION PAY-OUT UPON TERMINATION. Eligible full-time and part- time regular employees who terminate their employment with the City shall be paid for all accrued vacation, if any, and the prorated portion of their final vacation accrual. Prorated vacation shall be on the basis of 1/12 of the employee's annual vacation pay for each full month of service. Article XIII PART-TIME & TEMPORARY EMPLOYEE ELIGIBILITY FOR FRINGE BENEFITS SECTION 1. DEFINITIONS. Nothing contained in this section guarantees a specified number of hours per day or days per week or weeks per year or months per year of work to any City employee. Employees who are not defined as Full-Time Employees may be defined as followed: A. Regular Dart-time emolovees shall be those employees scheduled in the City's Budget to work 20 or more hours per week on a year-round basis (52 weeks minus approved leave). 12 B. Temporary part-time employees shall be those employees scheduled in the City's Budget to work less than 20 hours per week on a year-round basis (52 weeks minus approved leave). I C. Seasonal emplovees shall be those employees who are scheduled in the City's Budget to work on less than a year-round basis regardless of hours worked. SECTION 2. REGULAR PART-TIME EMPLOYEES. Entitlement to fringe benefits are based upon a proration of hours. A. Regular part-time employees shall receive fringe benefits in proportion to the number of hours the employee is scheduled to work per the City's approved Budget, to the normal40-hour week on an annual basis. The annual schedule for all regular part-time employees shall be the schedule that is included in the City's approved budget or a schedule that is designated by Management at the commencement of the employee's employment with the City. B. This pro-ration shall apply to the following fringe benefits: holiday pay, vacation, sick leave, flexible benefit plan contribution, life insurance contribution, retirement contribution, and disability insurance. C. Regular part-time employees may receive step increases provided they work the actual number of hours a full-time employee would have had to work in order to be entitled to progress to the next step of the salary range. SECTION 3. TEMPORARY AND SEASONAL EMPLOYEES. Temporary and Seasonal employees shall be entitled to receive no fringe benefits provided for in this Memorandum of Understanding or in any resolution of the City, except those stated in Article XVill, Section 4, or unless otherwise provided by Federal and/or State Law. Article XIV LEAVES OF ABSENCE I SECTION 1. LEAVE OF ABSENCE WITHOUT PAY. For all regular employees as described herein, the following Leave Without Pay procedure shall apply: A. After all available leave benefits, including vacation, compensatory time, and other leave benefits have been completely used, an employee, not under suspension, may make written application to the department head for leave without pay. No such leave will be considered without a written application from the employee requesting leave.' 13 B. If the department head and the Personnel Director agree that such leave is merited and in the interest of the City, leave may be granted for a period not to exceed six 6) months following the date of expiration of all other allowable leave benefits. C. No employment 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 except as denoted under the FCML section below. During such leave in excess of five working days, no seniority shall be accumulated. D. Subject to and consistent with the conditions of the group heath, life or disability plans, coverage may be continued during a leave of absence without pay, provided direct payment of the total premium is made bv the emplovee as prescribed by the Payroll Division of the City. The City will pay up to six (6) months of the Flexible Benefit Plan contribution for employees who are on long term disability leave. E. At the end of such leave, if the employee desires additional leave, written application must be made through the department head to the Personnel Director at least ten (10) days before the end of the six (6) month period stating the reasons why the additional leave is required and why it would be in the best interests of the City to grant such a leave of absence. If such additional leave is merited and would still preserve the best interests of the City, he may approve such extension of the leave of absence for a period up to, but not to exceed an additional six months. F. 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 the employee as terminated from his employment with the City. G. An employee on leave of absence must give the City at least seven day's written notice of intent to return to work prior to returning to work. H. Any employee who engages in outside employment during said leave of absence without prior notification and approval of the Personnel Director and department head may be subject to termination. 1. Any employee who falsifies the reason for request for said leave of absence may be terminated for falsifYing a request of absence or extension thereof. J. Such leave shall be granted on the same basis for pregnancy, childbirth, and other medically related conditions, except that such an employee shall retain all seniority rights. K. Forms setting forth the benefits available or such other pertinent information shall be maintained for distribution in the Personnel Services Department. 14 I SECTION 2. PERSONAL NECESSITY LEAVE. Employees may be allowed l,Ip to one (I) working day per month ofPersonal Necessity Leave for personal business with approval of the department head or his designee. Employees shall accrue no employment benefits for any Personal Necessity Leave in excess of one day per month. Personal Necessity Leave shall be without pay and shall not be accumulated from month to month. SECTION 3. JURY DUTY AND WITNESS SERVICE FOR CITY. A. Jurv Dutv. When required to serve on a jury an employee shall have paid time off for a period not to exceed 30 calendar days per calendar year for actual jury duty. Employees shall receive their regular pay while serving on jury duty, provided all jury fees paid to the individual employee, less allowed automobile expenses, are turned over to the City. B. Witness Service for the Citv. If an employee is called as a witness, on behalf of the City, he shall receive his normal pay for the time spent by the employee serving as a witness for the City. Employees shall be required to pay to the City any witness fees that accrue to the employee for his witness service as a condition of receiving his normal pay while serving as a witness for the City. SECTION 4. MILIT ARY LEAVE OF ABSENCE. If an employee is required to take military training two weeks each year; he shall be entitled to military leave of absence under the provisions of State law, found in Section 395-395.02 of the Military and Veterans' Code. SECTION 5. SICK LEAVE. Sick leave with pay shall be allowed, credited, and accumulated in accordance with the following: A. For employees working a regnlar 40-hour week, eight (8) hours of sick leave will accrue for each month of continuous service. probationary employees may use accrued sick leave during the probationary period. B. Sick leave will be charged at the rate of one-quarter (y.) hour for each one-quarter y.) hour of work an employee is absent. C. Any employee eligible for sick leave with pay may use such leave for the following reasons: I I. Medical and dental office appointments during work hours when authorized by the department head or his designee; 2. Personal illness or physical incapacity resulting from causes beyond the employee's control; including pregnancy, childbirth and other medically related conditions; 3. Notwithstanding Section 8 below, no employee shall be eligible or entitled to sick leave with pay for any illness or injury arising out of and in the course of City employment. 15 D. Sick Leave Application. Sick leave may be applied only to an absence caused by illness or injury of an employee except as provided in Section 6 or 8. E. Sick Leave Charged. In any instance involving use of a fraction of a day's sick leave, the minimum charged to the employee's sick leave account shall be one- quarter (\I..) hour, while additional actual absence of over one-quarter (\I..) hour shall be charged to the nearest one-half (\I,) hour. Employees may be required to furnish a certificate issued by a licensed physician or other satisfactory written evidence of illness to establish the employee's entitlement to sick leave payment. Sick leave shall only be used for the purposes stated, and each department head or his designee shall be responsible for control of employee abuse of the sick leave privilege. F. Maximum Accumulation of Sick Leave. An employee who is initially hired after July 1, 1980, shall be allowed to accumulate sick leave to a maximum of750 hours. Sick leave hours in excess of such maximum shall be forfeited. G. Retirement from City Service and Entering the Public Emplovees' Retirement SyStem. An employee shall receive no sick leave payout for the first 60 days of accrued sick leave (0-480 hours), but shall receive 25% pay for the next 30 days of accrued sick leave (481-720 hours), and 50% pay for all accrued sick leave thereafter (721 hours and up). H. Death of an Emplovee. Upon the death of an employee while employed by the City, 100% of all accrued sick leave benefits shall be paid to the beneficiary of the deceased employee. Payment will be made when proper authorization for payment is received from the estate of the decedent employee. I. Sick Leave Conversion. 1. Eligible employees with sick leave usage of 0.0 to 27.0 hours per calendar year will have the option to convert up to 30 hours of their unused sick leave to vacation in the first pay period of the following year. 2. Employees with sick leave usage of 27.5 to 36.0 hours per calendar year may convert up to 20 hours of unused sick leave to vacation in the first pay period of the following year. . 3. Employees must have a minimum balance of 180 hours of sick leave available after conversion. 16 SECTION 6. FAMILY LEAVE. Family Leave is charged against the employee's accumulated sick leave balance. An employee may charge up to 48 hours per calendar year to sick leave for reasons of family related illness or injury. I SECTION 7. BEREAVEMENT LEAVE. Employees shall be entitled to take up to three (3) days of paid Bereavement Leave per incident on the following terms and conditions: A. Bereavement leave is limited to the death or critical illness where death of a member of an employee's immediate family appears to be itnminent. "Immediate family" as used in this sub-section, shall be limited to any relation by blood, marriage, or adoption who is a member of the employee's household (living at the same address) and any parent, legal guardian, parent-in-law, brother-in-law, sister- in_law, grandparent, grandchild, aunt, uncle, spouse, child, brother, or sister of the employee regardless of residence. B. Up to three (3) days of bereavement leave will be provided per incident, and shall not be charged to the employee's sick leave account. If unused, this time shall not carry over from year to year. An employee on bereavement leave shall inform his immediate supervisor of the fact and the reasons therefore as soon as possible. Failure to inform his immediate supervisor, within a reasonable period of time, may be cause for denial of bereavement leave with pay for the period of absence. SECTION 8. 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 on the following terms and conditions: A. An employee granted industrial leave shall continue to be compensated at his regular rate of pay during the first 30 calendar days of his injury. Following this period, the employee still on approved industrial leave shall be compensated at 80% of his regular rate of pay up to a maximum of335 calendar days. I B. 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 irijury 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 A) above. C. An industrial leave of up to one (1) year shall be authorized for each injury or illness determined to be compensable under the Workers' Compensation Act. D. Except as provided in (B) 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. E. Industrial leave shall expire when the first one of the following conditions occurs: 17 1) Employee is able to return to work to his regular position; 2) The employee is able to return to work to another position designated by the City; 3) 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 as determined by the Public Employees' Retirement System: a) The employee's condition is determined to be permanent or of an extended duration; b) The degree of disability precludes continued employment by the employee in his present position; 4) After 52 weeks of industrial leave. F. Personal Phvsician Notification. Employees who have not previously submitted notification of Election of Personal Physician are required to use only physicians and medical facilities approved by the City during the 30 days after an occupational injury or illness is reported. After the first 30-day period, an employee may change to a physician specified by him provided that the physician has the expertise to treat the injury or illness and agrees to provide timely reports to the City. An employee may request one change of physician during the 30 days after the injury or illness is reported.However, if an employee has notified the City in writing, prior to the date of injury that he has a personal physician, the employee shall have the right to be treated by such physician from the date of injury providing that:1) The physician has previously directed the medical treatment of the employee.2) The physician retains the medical records and history of the employee.G. The City will continue to provide fringe benefits for employees who qualify for industrial leave pursuant to this provision. Any fringe benefits not paid by the City pending the determination of whether an injury/iIlness is job-related shall be paid retroactively if the injury/illness is subsequently determined to be job-related. In such instances the employee shall be reimbursed for any benefit or premium payments made by the employee prior to the job- related determination being finalized.SECTION 9. FAMILY CAREAND MEDICAL LEAVE (FCML), State and Federal laws require the City to provide family and medical care leave for eligible employees. The following provisions set forth employees' and employer's rights and obligations with respect to such I I Rights and obligations which are not specifically set forth below are set forth in the City's Administrative Manual, Personnel Section, #2.61. Any provisions not set forth in the Administrative Manual are set forth in the Department of Labor regulations implementing the Federal Family and Medical Leave Act of 1993 (FMLA) and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act CFRA) (Government Code Section 12945.2). Unless otherwise provided, "Leave" under this Article shall mean leave pursuant to the FMLA and CFRA. An employee's request for leave is subject to review and final approval of the Personnel Director. A. Amount of Leave. Eligible employees are entitled to a total of 12 workweeks of leave during any 12-month period. An employee's entitlement to leave for the birth or placement of a child for adoption or foster care expires 12 months after the birth or placement. B. The 12-month period for calculating leave entitlement will be a "rolling period" measured backward from the date leave is taken and continues with each additional leave day taken. Thus, whenever an employee requests leave, the City will look back over the previous 12-month period to determine how much leave has been used in determining how much leave an employee is entitled to. C. Use of Other Accrued Leaves While on Leave. If an employee requests leave for any reason permitted under the law, he/she must exhaust all accrued leaves (except sick leave) in connection with the leave. This includes vacation, holiday, and other compensatory accruals. If an employee requests leave for his own serious health condition, in addition to exhausting accrued leave, the employee must also exhaust sick leave. The exhaustion of accrued leave will run concurrently with the Family Care and Medical Leave. D. Reauired Forms. Employees must fill out required forms, available in the Personnel Services Department, including: Request for Family or Medical Leave; Medical Certification; Authorization for Payroll Deductions for Benefit Plan Coverages (if applicable); and the Fitness-for-Duty to Return From Leave. Article XV FRINGE BENEFIT ADMINISTRATION SECTION I. ADMINISTRATION. The City reserves the right to select the insurance carrier or administer any fringe benefit programs that now exist or may exist in the future during the term of the Memorandum of Understanding. SECTION 2. SELECTION AND FUNDING. In the administration of the fringe benefit programs, 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 ofirnplementation of this Agreement. 19 SECTION 3. CHANGES. If, during the term of this Memorandum of Understanding, any change of insurance carrier or method of funding for any benefit provided hereunder occurs, the City shall notify WDEA prior to any change of insurance carrier or method of funding the coverage. Article XVI HEALTH BENEFITS SECTION 1. HEALTH INSURANCE. The City shall continue to contract with the Public Employees' Retirement System (PERS) to make available those health insurance benefits provided under the Public Employees' Medical and Hospital Care Act (PEMHCA). A. Premium Contribution. The City shall contribute toward the payment of premium under the PERS Health Benefits Plan to each eligible retiree annuitant of PERS, to the extent required by law, a contribution of $48.40 per month. Effective January I, 2006 this shall be increased to $64.60 per month. Effective January 1, 2007, this shall be increased to 80.80 per month. B. Flexible Benefits Plan. The City shall provide a Section 125 Flexible Benefits Plan for active full-time eligible employees and pay the following amounts to provide funds for optional dental plans, vision plans, health plans, or as miscellaneous pay: Effective Date Single 2-l'arty Family Janu 1,2005 Janu 1,2006 Janu 1,2007 345 390 410 605 670 705 765 875 919 C. Any amounts in excess of the amounts designated in Section A and B necessary to maintain benefits under any benefits plans selected by the employee shall be borne by the employee. D. An employee cannot be enrolled in the PERS. Health Benefits Plan if a spouse is enrolled in the same agency or enrolled in an agency with PERS health, unless the employee (or the spouse) is enrolled without being covered as a family member. E. An employee may choose not to be enrolled in the Health Benefits Plan. If an employee chooses not to be enrolled in the health plan, the employee must provide proof, as determined by the Personnel Director, that comparable medical insurance is in full force and effect. Based on determination that insurance is in full force and effect, eligible employees shall 20 receive $330.00 towards the Flexible Benefits Plan. Effective January I, 2006, eligible employees shall receive $390.00 towards the Flexible Benefits Plan. This amount shall increase to $410.00 effective January 1, 2007. I F. In the event that the employee loses his eligibility with the comparable medical insurance plan, then, upon submittal of documentation, the employee may re-enroll in the PERS Health Benefits Plan pursuant to their rules and regulations. SECTION 2. LIFE INSURANCE. The City shall contribute the full premium toward a $23,000 life insurance policy for each employee. SECTION 3. LONG TERM DISABILITY BENEFITS. The City shall provide a long-term disability plan which pays 60% of salary after a 60-day elimination period to a maximum of 3,000 per month. Effective January I, 2006, the maximum LTD benefit shall increase from 3,000 per month to $4,000 per month. SECTION 4. STATE DISABILITY INSURANCE. The City of Orange has entered into a contract with the State of California for an integrated State Disability Plan concerning employees in the WDEA. A. The Disability Insurance Program is designed to serve the employees by mail. They need not leave home or the hospital to receive benefits. In order to apply, a claim form must be obtained from the Personnel Services Department. They must fill out the "Claim Statement of Employee" form completely and then have their doctor complete the Doctor's Certificate" section in order for the claim to be processed. The employee should be aware that if he receives State Disability Insurance benefits for time paid as sick leave by the City, he will be responsible for reimbursing the City by payroll deduction for the amounts paid by both the City and State Disability insurance, and sick leave balances will be adjusted accordingly. B. When a claim is received, the State Disability Insurance Office will request the necessary information to determine the employee's eligibility. Benefits may begin with the day after the 7th calendar day waiting period of disability or the first day of hospitalization. An employee may be paid for the waiting period if their disability exceeds 21 days. I C. Benefits are coordinated between the City of Orange and State Disability and the employee is paid allowance benefits based on their present rate of pay and the State Disability Insurance benefit schedule. 21 Article XVII EDUCATIONAL ASSISTANCE PROGRAM SECTION 1. PROGRAM REQUIREMENTS. The City will reimburse employees for training costs associated with certifications and the cost of tuition, textbooks, health fees, and parking fees required for approved community college and college courses. An approved course is one designated to directly improve the knowledge of the employee relative to his specific job, and must be approved by the department head and the Personnel Director prior to registration. Reimbursement will be based upon the final grade received. A fmal grade of "C" or better qualifies the employee for I 00% reimbursement up to the amount specified in Section 2. SECTION 2. PAYMENTS. Educational assistance payments to an employee shall not exceed 600.00 in anyone fiscal year. The individual must be employed by the City when the course is . completed to qualify for a reimbursement. Article XVIII RETIREMENT SECTION I. Employees participate in the Public Employees' Retirement System. The City agrees to pay 8% of the employee's base salary to the Public Employees' Retirement System including the full contribution for the Survivors Benefit. SECTION 2. Effective June 29, 2003, the City shall provide the PERS 2.7% @ age .55 Retirement Program. Effective June 27, 2004, and for the term of the Agreement, employees shall contribute 2.64% of PERS-reportable salary, on a pre-tax basis, toward the City's PERS Employer Contribution Rate to offset some of the costs of the enhanced PERS 2.7% at age 55 Retirement Program. The City shall pay all remaining employer costs toward the retirement program for employees covered herein. SECTION 3. The City will provide the PERS 1959 Survivor Benefit at the Third Level Option. SECTION 4. Part-time employees not covered under the Public Employees' Retirement System shall participate in a defmed contribution retirement plan in lieu of Social Security contributions. The City shall contribute 3.75,% of the employee's eligible earnings toward the retirement plan. Part-time employees shall contribute 3.75% of their eligible earnings toward the retirement plan. SECTION 5. Effective June 27, 2004, pursuant to Government Code Section 20636(c), the City agrees to pay and report the value of employer paid member contributions (EPMC) to CalPERS as additional compensation for all employees covered by this Memorandum of Understanding. This benefit shall consist of paying 8% of the normal contributions as EPMC for employees, and reporting this 8% as compensation earnable (excluding Government Code Section 20636 (c)(4) as additional compensation). 22 Article XIX MISCELLANEOUS PROVISIONS I SECTION 1. RIDESHARE INCENTIVE PROGRAM. An employee may receive $30 per month and eight (8) hours compensatory time every six (6) months for carpooling, using public transportation, biking, walking, carpooling or other approved modes of transportation to and from the work-site. To qualify for these incentives, an employee must use one of the above forms of transportation 70% of his commuting time. SECTION 2. UNIFORMS. The City retains the absolute right to establish a uniform policy for any of its departments. SECTION 3. WORK SHOE ALLOWANCE. Employees are required to wear safety shoes with steel toes while on duty. Inspection of the work site will be made on a regular basis to ascertain compliance to the safety shoe program. A. Allowance. The City will contribute up to $300 on a fiscal year basis per employee toward a work shoe allowance. B. Applicabilitv. The Work Shoe Allowance will be applicable towards the purchase of steel-toe safety boots (ANSI standards approved), arch supports, insoles and water conditioner. SECTION 4. EYEGLASS REPLACEMENT. The City will pay for replacement of employee's eyeglasses that are lost or damaged in the course of his work. Damaged eyeglasses will be turned into the City in order for the employee to be entitled to reimbursement. The City will not reimburse an employee for more thah one pair of lost or damaged eyeglasses per fiscal year. SECTION 5. CLOTHING REIMBURSEMENT ALLOWANCE. A. Allowance. The City shall contribute up to $150 per employee toward the clothing reimbursement allowance per fiscal year. B. Reimbursement Reauest. Employees may submit a request for reimbursement once per fiscal year. I C. Clothing. The City shall reimburse employees for the following articles of clothing which are to be worn on the job: blue jeans, white crew socks, white walking socks, and two (2) pairs of shorts per year. The following articles of clothing are not considered reimbursable clothing under this MOU: polo shirts, T-shirts, jackets, windbreakers, dress socks, dress slacks, and other types of clothing not specifically reimbursable under the above guidelines. 23 SECTION 6. BREAKS. Employees are entitled to two l5-minute breaks, unless an emergency requires continued work, as determined by the employee's supervisor. An employee shall be permitted to take one break during the first half ofthe work shift and one break during the second half of the work shift. Breaks shall be scheduled to ensure that public counters and telephones are covered at all times during the regular working day and are designed to provide a period of relaxation and/or nutrition during each half of the working day. If a break is not taken, it shall not be accumulated, but shall be lost and not charged in the future to the City.Article XX TRAVEL EXPENSE ALLOWED SECTION I. MILEAGE REIMBURSEMENT. Expense claims for the use of private automobiles must be authorized by the department head, and submitted to the Accounts Payable division of the Finance Department for reimbursement. Such use, where mileage is reimbursed,will be reimbursed at the rate per mile allowed under the current IRS regulations.SECTION 2. OUT -OF-CITY TRAVEL. If the estimated expense of contemplated travel out-of-the-City is too great to expect the employee to finance the trip and be reimbursed upon his return,the City Manager may authorize payment of the estimated amount of the travel expense to the employee.A. Tourist-Class airplane passage will be considered standard for out-of-town travel.B. Use of personal cars for out-of-City trips, within the State, may be approved by the City Manager when use of commercial transportation is not available or practical. If an employee prefers to use his personal car, he may be reimbursed mileage expenses as long as the expenses do not exceed the amount of the cost of the commercial transportation.1) The rate per mile allowed under the current IRS regulations shall be approved for use of personal cars when City cars are not available.SECTION 3. TRANSPORTATION AND EXPENSE CHARGES. Air, rail, or public transportation used, expense for local transportation, such as taxicabs and bus fare, will be allowed whenever such transportation is necessary for conduct of City business. In addition, the following expenses and charges will be allowed, whenever necessary, for the conduction of City business.A. Expenses will be allowed for adequate lodging. Hotel accommodations shall be appropriate to the purpose of the trip.B. Telephone and telegraph and facsimile charges will be allowed for official calls,telegrams and transmissions.C. Expenses for meals will be reimbursed according Article XXI SAFETY AND HEALTH I SECTION 1. The City and the employees of the City agree to comply with all applicable Federal, State and City laws; Federal, State and City codes; and City policies which relate to health and safety. SECTION 2. In addition, the City and the WDEA agree to actively pursue the continuance of safe working procedures and environments. Article XXII CITY RIGHTS SECTION I. 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: A. To manage the City generally and to determine the issues of policy. B. To determine the existence or non-existence of facts, which IS the basis of the Management decision. C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services. D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. E. To determine the methods of fmancing. F. To determine the types of equipment or technology to be used. I G. To determine and/or change the facilities, methods, technology, means, and size of the work force by which the City operations are to be conducted. H. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City. 25 I. 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. J. To relieve employees from duties for lack of work, economic conditions or similar non- disciplinary reasons. K. To establish and modify productivity and performance programs and standards. L. To discharge, suspend, demote, or otherwise discipline employees for proper cause. M. To determine job classifications, to reclassify employees, and to determine the newly created classifications to be assigned to the bargaining unit. N. To hire, transfer, promote, and demote employees for non-disciplinary reasons III accordance with this Memorandum of Understanding.O. To determine policies, procedures, and standards for selection, training, and promotion of employees.P. To establish employee performance standards including, but not limited to, quality and quantity standards; and to require compliance therewith.Q. To maintain order and efficiency in its facilities and operations.R. To establish and promulgate and/or modify rules and regulations to maintain order and safety in the City which are not in contravention with this Agreement.S. To take any and all necessary action to carry out the mission of the City in emergencies.SECTION 2. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact on employees of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the WDEA regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding or in Personnel Rules and Salary Resolutions and Administrative Code, which are incorporated in this Agreement. By agreeing to meet and confer with the WDEA as to the impact and the exercise of any of the foregoing City Rights, Management's discretion in the exercise of these rights shall not be diminished. 26 I Article XXIII EMPLOYEE ORGANIZATIONAL RIGHTS AND RESPONSIBILITIES I SECTION 1. DUES DEDUCTIONS / AGENCY SHOP. The City shall deduct for dues and WDEA benefits on a bi-weekly basis from the pay of all employees in the classifications and positions recognized to be represented by WDEA. These deductions shall be made utilizing a mutually agreed upon form to be provided for this purpose. The City shall remit such funds to WDEA within 10 days following their deduction. WDEA is an Agency Shop association. This means each employee must either be a dues paying member of the association, or, in lieu of membership, pay a service fee to the association as the exclusive representative of his position, or, if he qualifies, may designate a certain non-profit agency to which he will pay an equivalent amount. Adherence to the Agency Shop provision is a condition of employment. The City shall remit such funds to the WDEA within 10 days following their deduction. SECTION 2. INDEMNIFICATION. The WDEA agrees to hold the City harmless and indemnify the City against any claim, causes of actions, or lawsuits arising out of the deductions or transmittal of such funds to the WDEA, except the intentional failure of the City to transmit to the WDEA monies deducted from the employees pursuant to this Article. SECTION 3. NEW HIRES. The City will provide the Association with a list of any new hires into the bargaining unit within 30 days of receipt of a request for such list by the Association. SECTION 4. BULLETIN BOARDS. The WDEA shall have the right to use bulletin boards on City premises for the purpose of posting announcements and WDEA information. The City will furnish bulletin board space on one existing bulletin board to be selected by the WDEA at each location where there are five or more employees. The bulletin boards shall be used for the following subjects only: A. WDEA recreational, social, and related Union news bulletins. B. Scheduled WDEA meetings. C. Information concerning WDEA elections and the results thereof. D. Reports of official WDEA business, including WDEA newsletters, reports of committees, or the Board of Directors. I E. Any'other written material which first has been approved and initiated by the designated City representative at each facility. The designated City representative must either approve or disapprove a request for posting within 24 hours, excluding Saturday, Swiday, and legal holidays, from the receipt of the material and the request to post it. The designated City representative shall not unreasonably withhold permission to post. SECTION 5. Except as limited by specific and express terms of this Memorandum of Understanding, the WDEA 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 27 and/or United States of America. Article XXIV GillEV ANCE AND DISCIPLINARY APPEALS PROCEDURE SECTION 1. DEFINITION OF GRIEVANCE. A grievance shall be defined as a timely complaint by an employee or group of employees of the WDEA concerning the interpretation or application of specific provisions of this Memorandum of Understanding or of the Rules and Regulations governing personnel practices or working conditions of the City. SECTION 2. DISCIPLINARY APPEALS. Any full-time employee who has obtained regular status, and any promotional probationary employee shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The right to appeal shall not apply to probationary, non-benefited part-time, temporary, or seasonal employees covered by this MOD. Verbal or written reprimands, probationary demotions, performance evaluations, and denial of merit increases are not subject to appeal. However, an employee may submit a written rebuttal to any verbal or written reprimand. In addition, the employee may also request said reprimand be withdrawn from their official Personnel record after one (I) year. Such removal shall be at the complete discretion of the Personnel Director. SECTION 3. BUSINESS DAYS. Business days mean calendar days, exclusive of Saturdays, Sundays, and legal holidays recognized by the City. SECTION 4. TIME LIMITS FOR FILING WRITTEN FORMAL GRIEVANCES. The time limits for filing written formal grievances shall be strictly construed, but may be extended by mutual agreement evidenced, in writing, and signed by a duly authorized representative of the City and the grieving party. Failure of the grieving party to comply with any of the time limits set forth hereunder shall constitute waiver and bar further processing of the grievance. Failure of the City to comply with time limits set forth in this Section shall automatically move the grievance to the next level in the Grievance Procedure. The grieving party may request the assistance of the WDEA in presenting a grievance at any level of review or may represent himself. SECTION 5. INFORMAL GRIEVANCE PROCESS. An employee must first attempt to resolve a grievance on an informal basis by discussion with his immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution to, the grievance by these informal means at the most immediate level of supervision. At no time may the informal process go beyond the division head concerned. In order that this informal procedure may be responsive, all parties involved shall expedite this process. In no case may more than 10 business days elapse from the date of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance and the filing of a 28 I I written formal grievance with the Personnel Director of the City, with a copy to the department head in which the employee works. Should the grievant fail to file a written grievance within 10 business days from the date of the incident giving rise to the grievance, or when grievant knew or should have reasonably become aware of the facts giving rise to the grievance, the grievance shall be barred and waived. SECTION 6. FORMAL GRIEVANCE PROCESS. PERSONNEL DIRECTOR. DEPARTMENT HEAD. If the grievance is not resolved through the informal process, a written grievance must be filed within the time limits set forth above, the grievant shall discuss the grievance with the Personnel Director and the department head. The Personnel Director and the department head shall render a decision and comments, in writing, regarding the merits of the grievance and return them to the grievant within 10 business days after receiving the grievance. SECTION 7. FORMAL DISCIPLINARY APPEALS PROCESS. An employee desiring to appeal a supervisor/manager's decision to take disciplinary action shall have up to ten (10) business days after receipt of the decision to file either a verbal or written appeal to the Department Head. If, within the appeal period, the employee does not file an appeal, unless good cause for the failure is shown, the disciplinary action shall be considered conclusive and shall take effect as prescribed. If the employee does file a notice of appeal within the appeal period, the Department Head shall consider the merits of said appeal prior to implementation of any disciplinary action. In the event the Department Head upholds the disciplinary action, said action shall be implemented immediately. A full-time employee who has obtained regular status may appeal said action to the City Manager or, at the City Manager's discretion, to his designee, as long as such designee is not a manager from the department of the employee filing said appeal. An employee may appeal any termination, suspension, reduction in salary, or non-probationary demotion to the City Manager or his designee. Any request for an appeal to the City Manager shall be submitted in writing to the Personnel Services Department within ten (10) days of the Department Head's decision. Failure to do so shall constitute a waiver of any further administrative or judicial appeals. The appeal to the City Manager may be either in the form of a written appeal or an oral presentation. Termination appeals shall be processed in accordance with the provisions of Section 9, Article XXN. SECTION 8. FORMAL GRIEVANCE PROCESS. CITY MANAGER. lithe grievance is not resolved in Section 6 above, or if no answer has been received from the Personnel Director and department head within 10 business days from the presentation of the written grievance to the Personnel Director and department head, the written grievance shall be presented to the City Manager, or his duly authorized representative, for determination. Failure of the grievant to take this action will constitute a waiver and bar to the grievance, and the grievance will be considered settled on the basis of the last Management grievance response. The City Manager, or his duly authorized representative, shall render a final decision on the merits of the grievance and comments, in writing, and return them to the grievant within 10 business days after receiving the grievance. After this procedure is exhausted, the grievant, the WDEA and the City shall have all rights and remedies to pursue said grievance under the law. The City shall instruct its supervisors on the proper use and implementation of this grievance procedure and every 29 reasonable effort shall be made by employee and the supervisor to resolve the grievance at the informal step. SECTION 9. FORMAL PROCESS FOR TERMINATIONS. ADVISORY HEARING OFFICER. A full-time, non-probationary terminated employee may request a full evidentiary hearing within 15 City business days of the date of any notice of termination. Failure to request a Ihearingwithinthe15-day period constitutes a waiver of the hearing. In lieu of a hearing, a terminated employee may submit a written response to the City Manager within the 15-day period. Requests for extensions to file a written response must be made within the 15-day period. If a hearing is requested to challenge the imposition of termination, a full evidentiary hearing shall be held by a Hearing Officer who shall render an advisory decision. If the parties cannot agree on the identity of the Hearing Officer, the parties shall procure from the State Conciliation Service a list of seven qualified Hearing Officers. Each party shall alternately strike one name from the list until only one-person remains, who shall be the Hearing Officer. The determination as to which party strikes first shall be made on a random basis. A. Fees for retaining the Hearing Officer and other costs related to conducting the hearing, for example employing a court reporter, shall be shared equally by the City and the employee/appellant. The City and the employee shall each be responsible for securing and paying for their respective representation at the hearing, if any. B. The Hearing Officer shall determine whether good cause exists for the imposition of the termination and, if not, the appropriate degree of discipline. C. The decision of the Hearing Officer is remitted to the City Manager for final disposition. D. The City Manager, or his duly authorized representative, shall render a final decision on the Hearing Officer's comments and recommendation, in writing, and return them to the grievant within 10 business days after receiving the Hearing Officer's findings. E. After this procedure is exhausted, the grievant, WDEA and the City shall have all rights and remedies to pursue said grievance under the law. Article XXV NO STRIKE-NO LOCKOUT ISECTION1. The WDEA, its officers, agents, representatives and/or members agree that during the term of this Agreement, they will not cause or condone any strike, walkout, slowdown, sick- out, or any other job action by withholding or refusing to perform services. 30 I SECTION 2. 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 as set forth in any of the provisions of this Agreement or applicable ordinance or law. SECTION 3. Any employee who participates in any conduct prohibited in Section I above may be subject to termination by the City. SECTION 4. In addition to any other lawful remedies or disciplinary actions available to the City, if the WDEA fails, in good faith, to perform all responsibilities listed below in Section 5, WDEA Responsibility, the City may suspend any and all of the rights, privileges, accorded to the WDEA under the Employee Relations Resolution and this Memorandum of Understanding, including, but not limited to, suspension of recognition of the WDEA, grievance procedure, right of access, check-off, the use ofthe City's bulletin boards, and facilities. SECTION 5. WDEA RESPONSffiILITY. A. In the event that the WDEA, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 1 above, the WDEA 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 they should immediately cease engaging in prohibited conduct and return to work. B. If the WDEA performs all of the responsibilities set forth in paragraph (A) above, its officers, agents, and representatives shall not be liable for damages for prohibited conduct performed by employees who are in violation of Section 1 above. Article XXVI WDEA REPRESENTATIVES SECTION 1. The City agrees to recognize the five representatives selected by the WDEA. I SECTION 2. WDEA agrees to limit to three the number of representatives plus any paid WDEA consultants authorized by WDEA as meet and confer representatives. SECTION 3. The WDEA shall have the responsibility to notify the City, in writing, of the names of its duly authorized representatives. The City shall have no obligation to recognize or deal with any employee as a Representative unless he is on the designated representative list. SECTION 4. Representatives shall not log compensatory time, overtime, or any other premium time and one-half) pay for time spent performing any function as a Representative. 31 SECTION 5. Representatives shall be entitled to use City available facilities to hold meetings. In addition, each Representative shall be allowed nine. (9) hours per fiscal year of City time for the purpose of attending Representatives' meetings. The WDEA will make advanced notification to a designated Management representative as to time and date of such meetings and names of persons attending. Article XXVII LAYOFF PROCEDURE When a layoff or reduction in force is necessary, the layoff procedures set forth in Resolution No. 8179, as incorporated below, shall be used as the established layoffpolicy and procedure. SECTION 1. PURPOSE. The purpose of this policy is to establish and communicate the City's procedures when a layoff or reduction in force is necessary. SECTION 2. SCOPE. All employees covered by the Water Department Employees' Association. All departments are subject to reduction in force at the direction of the City Manager. SECTION 3. POLICY. The City retains the right to abolish any position, reduce the work force and layoff employees when it becomes necessary due to economic conditions, organizational changes, lack of work, or because the necessity for a position no longer exists. Whenever possible, the City will advise the union of their intent at least ten calendar days in advance of the effective date. The City's layoff policy provides the following criteria to be followed during a reduction in force. SECTION 4. PROCEDURE. A. Order of Reductions in Force (Layoff and Demotion) Within a department and by classification, the order of layoff or demotion shall be as follows: 1) Temporary employees (19 hours or less); 2) Initial probationary employees; 3) Regular part-time employees (20 but less than 40 hours); 4) Regular full-time employees (40 hours). For purposes of this procedure, the Water Division will be considered a department. B. Lavoffs. 1) Layoffs shall be based on Citywide seniority, except, negative performance during the past 3 years will be considered to determine the order of layoff. Negative performance and disciplinary actions will include the following: 32 I a) Denial of merit increases; b) Suspension without pay; c) Extensions of probationary periods; d) Disciplinary demotions to lower level positions; e) Disciplinary reductions in pay; f) Performance evaluations. Reports containing significant, negative written comments indicating improvement needed and warning of further consequences to follow if improvement fails to occur. Only those reviews forwarded to the Personnel Services Department for inclusion in the official personnel file will be considered. A single negative disciplinary action will not reduce the employee's seniority. However, additional disciplinary actions will reduce the employee's seniority by two years for each additional occurrence, for a possible reduction of 6 years. If denial of a merit increase and extension of a probationary period occur at the same time, they will be considered as one disciplinary action. 2) The order of layoff shall be established by the Personnel Director, including seniority and results of review of performance evaluations and prior disciplinary actions. 3) The order of layoff will be the least seruor employee as determined by the procedure above. 4) Prior to the establishment of the final order oflayoff, the Personnel Director shall furnish affected employees a copy of the "Proposed Order of Layoff." Notice will be hand delivered to employees whenever possible. 5) If the employee wishes to contest the application of the criteria set forth in this policy to his position on the list, he may appeal with any supporting materials to the Personnel Director. This request should be directed to the Personnel Director within seven (7) calendar days following the establishment and distribution of a Proposed Order of Layoff" list. The employee will be allowed representation during the appeal process. I 6) After meeting with all employees wishing to be heard with respect to their position on the layoff list, the Personnel Director or his designee shall establish the "Final Order of Layoff' list. The decision of the Personnel Director or his designee shall be final and not subject to the grievance process or further appeal. C. Written Notice. Employees to be laid off shall be provided written notice at least ten calendar days in advance of the layoff date. Notice will be hand delivered to the employee whenever possible. Ifpersonal delivery is not possible, the notice will be sent by certified mail to the last known residential address. 33 D. Transfer or Demotion in Lieu of Lavoff 1) Whenever employees are to be laid off, they may transfer or demote to another vacant position in their own department or other departments providing that: a) the positions are at the same or lower level; b) positions are authorized, budgeted, and the City intends to fill the vacancIes; Ic) the employee meets the qualifications of the new position as determined by the PersomIel Director. 2) Whenever employees are to be laid off, they may demote to lower level, filled positions within their department providing they: a) formerly held or supervised the lower level position within the classification series; b) employee meets or can reasonably meet qualifications for the new position as determined by the PersomIel Director or can reasonably meet the qualifications within one month following appointment; c) posses greater seniority to displace a lower level worker; d) request in writing a demotion to the previously held or supervisory position within ten (10) calendar days of receiving the notice of layoff or voluntary demotion. A voluntary demotion shall not reflect as a negative action in the employee's persomIel file. E. Reemplovment Lists 1) Regular employees in good standing who are laid off or demoted shall have their name placed on a departmental reemployment list for the last classification previously held. Names shall be placed on the list in inverse order of seniority. (Last released - first rehired). Vacancies the department desires to fill will be offered first to eligibles on the departmental reemployment list. 2) Other hiring departments who have vacancies the City desires to fill will give priority consideration to those employees whose names appear on the reemployment list. If these employees are not selected for rehire, the reason for non-selection must be approved by the PersomIel Director. 3) Names of qualified individuals shall remain on reemployment lists for a period not to exceed 2 years from the date of layoff. Individuals who qualify for rehire but do not respond to written notification to the last known address on file within ten calendar days or who refuse two job offers shall have their names removed from the reemployment list. Once rehired, employee names are removed from all reemployment lists. SECTION 5. NON DISCRIMINATION IN REDUCTION IN FORCE. Layoffs and demotions, which result from a reduction in force, shall be made without regard to an employee's race, color, religion, national origin, sex, age, marital status, or functional limitations as defmed in the ADA and other applicable state and federal law. 34 I I I Article XXVIII SOLE AND ENTIRE MEMORANDUM OF UNDERSTANDING SECTION I. It is the intent of the parties hereto that the provisions of this Memorandum of Understanding shall supersede all prior agreements and memorandums of agreement, or memorandums of understanding, or contrary salary and/or personnel resolutions or Administrative Codes, provisions of the City, oral and 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. Article XXIX WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT SECTION 1. During the term of this Memorandum of Understanding, the parties mutually agree that they will not seek to change, negotiate, or bargain with regard to wages, hours, benefits, and terms and conditions of employment, whether or not covered by this Memorandum 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. Article XXX EMERGENCY WAIVER PROVISION SECTION I. In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this Memorandum of Understanding or the Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is over, the Union shall have the right to meet and confer with the City regarding the impact on employees of the suspension of these provisions in the Memorandum of Understanding and any Personnel Rules and policies. 35 I I Article XXXI SEPARABILITY SECTION 1. Should any provision 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. Article XXXII TERM OF MEMORANDUM OF UNDERSTANDING The term of this Memorandum of Understanding shall commence on July 1, 2005 and shall continue in full force and effect until June 30, 2007. Article XXXlII RATIFICATION AND EXECUTION The City and the WDEA acknowledge that this Memorandum of Understanding shall not be in full force and effect until adopted by the City Council of the City of Orange. Subject to the foregoing, this Memorandum of Understanding is hereby executed by the authorized representatives of the City and the WDEA and entered into this nth day of October, 2005. CITY OF ORANGE WATER DEPARTMENT EMPLOYEES' A IATI b',cc{ . 1/trtt P~tricia A. Roth, Senior Personnel Analyst l~ 1....---- .-;~ Paul Stupy, Vice President C \11^:~;t-~" (' ~^r Chris Costlow, Treasurer I L 61u" I ( . . Thompson, SecretaryC'.Teresa Chavez, Personnel Technician 36 APPENDIX A WATER DEPARTMENT EMPLOYEES' ASSOCIATION MONTHLY SALARY RANGES I EFFECTIVE JUNE 26. 2005: 2.0% Across the Board Salary Increase; plus 2.0% Inequity Adjustment for Water Equipment Operator I, Water Equipment Operator il, and Water Maintenance Leadworker; and 1.0% Inequity Adjustment for Water l'lant Operator, and Water Skilled Maintenance Worker NEW STEP STEP STEP STEP STEP STEP Classification Title RANGE A B C D E F Senior Water Meter Service Wkr 442 3233 3398 3571 3753 3945 4146 Water Equipment Operator I 439 3185 3348 3518 3698 3886 4084 Water Equipment Operator IT 469 3699 3888 4086 4294 4513 4744 Water Maintenance Leadworker 469 3699 3888 4086 4294 4513 4744 Water Maintenance Worker I 399 2609 2742 2882 3029 3183 3346 Water Maintenance Worker IT 419 2883 3030 3184 3347 3517 3697 Water Meter Service Worker I 408 2729 2868 3014 3168 3330 3499 Water Meter Service Worker IT 428 3015 3169 3330 3500 3679 3866 Water Plant Operator 452 3398 3572 3754 3945 4147 4358 Water Skilled Maintenance Wkr 447 3315 3484 3661 3848 4044 4251 Water Yard Storekeeper 429 3030 3185 3347 3518 3697 3886 EFFECTIVE JUNE 25. 2006 3.0% Across the Board Salary Increase NEW STEP STEP STEP STEP STEP STEP Classification Title RANGE A B C D E F Senior Water Meter Service Wkr 448 3331 3501 3680 3867 4065 4272 Water Equipment Operator I 445 3282 3449 3625 3810 4004 4209 Water Equipment Operator IT 475 3812 4006 4210 4425 4651 4888 Water Maintenance Leadworker 475 3812 4006 4210 4425 4651 4888 Water Maintenance Worker I 405 2688 2825 2969 3121 3280 3447 I Water Maintenance Worker IT 425 2970 3122 3281 3448 3624 3809 Water Meter Service Worker I 414 2812 2955 3106 3264 3431 3606 Water Meter Service Worker II 434 3107 3265 3432 3607 3791 3984 Water Plant Operator 458 3502 3680 3868 4065 4273 4490 Water Skilled Maintenance Wkr 453 3415 3590 3773 3965 4167 4380 Water Yard Storekeeper 435 3122 3281 3449 3625 3809 4004 37