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HR PEU Local 1 MOU 2018-2020MEMORANDUM OF UNDERSTANDING between CITY OF SAN RAFAEL and Public Employees Union Local 1 JUL Y 19 2018 - JUNE 30, 2020 J-4 - I R -- This page intentionally left blank Local I MOU 2018 - 2020 TABLE OF CONTENTS I GENERAL PROVISIONS......................................................................................................................1 1.1 INTRODUCTION........................................................................................................................................... l 1.1.1 Scope of Agreement................................................................................................................................ l 1.1.2 Term of MOU............................................................................................................................................1 1.2 RECOGNITION.............................................................................................................................................1 1.2.1 Bargaining Unit......................................................................................................................................... l 1.2.2 Notice to Employees................................................................................................................................ l 1.3 NON-DISCRIMINATION................................................................................................................................2 1.3.1 In General.................................................................................................................................................2 1.3.2 Bargaining Unit Discrimination...............................................................................................................2 1.4 INSPECTION OF MEMORANDUM OF UNDERSTANDING...............................................................................2 1.5 EXISTING LAWS, REGULATIONS & POLICIES............................................................................................2 1.6 STRIKES & LOCKOUTS...............................................................................................................................2 1.7 SEVERABILITY............................................................................................................................................2 1.8 PREVAILING RIGHTS...................................................................................................................................2 1.9 FULL UNDERSTANDING, MODIFICATION, WAIVER.....................................................................................3 1.9.1 Understanding..........................................................................................................................................3 1.9.2 Waiver & Modification..............................................................................................................................3 2 MMBA...........................................................................................................................................................3 2.1 BARGAINING UNIT RIGHTS.........................................................................................................................3 2.1.1 Bargaining Unit Stewards Designation.................................................................................................3 2.1.2 Bulletin Boards.........................................................................................................................................3 2.1.3 Union Orientation of New Employees...................................................................................................3 2.1.4 Employee Information.............................................................................................................................4 2.2 DUES DEDUCTION......................................................................................................................................4 2.2.1 Collection of Dues....................................................................................................................................4 2.2.2 Dues Collection during Separation from Employment.......................................................................4 2.2.3 Agency Shop............................................................................................................................................4 2.2.4 Indemnification.........................................................................................................................................4 2.3 MANAGEMENT RIGHTS...............................................................................................................................5 3 COMPENSATION.....................................................................................................................................6 3.1 GENERAL WAGES AND COMPENSATION...................................................................................................6 3.1.1 Pay Dates..................................................................................................................................................6 3.1.2 General Wage Increase..........................................................................................................................6 3.1.3 One -Time Payments................................................................................................................................6 3.1.4 Definitions.................................................................................................................................................6 3.1.5 Compensation Plan.................................................................................................................................7 3.2 STEP INCREASES.......................................................................................................................................7 3.2.1 Entry Level Step.......................................................................................................................................7 3.2.2 Consideration for Step Increases..........................................................................................................7 3.2.3 Merit Increases.........................................................................................................................................7 3.2.4 Anniversary Date.....................................................................................................................................7 3.2.5 Promotions................................................................................................................................................8 3.2.6 Performance Evaluations........................................................................................................................8 3.3 SALARY CHANGE ON RECLASSIFICATION.................................................................................................8 3.3.1 To a Lower Classification........................................................................................................................8 3.3.2 To a Different Classification with the Same Salary Range................................................................8 3.3.3 To a Higher Classification.......................................................................................................................8 3.4 OUT OF CLASS COMPENSATION................................................................................................................8 3.5 ADDITIONAL PAY........................................................................................................................................9 3.5.1 Confidential Pay.......................................................................................................................................9 Local 1 MOU 2018 - 2020 3.5.2 Educational Pay.......................................................................................................................................9 3.5.3 Bilingual Pay.............................................................................................................................................9 SICK LEAVE..............................................................................................................................................15 3.5.4 Uniform Allowance...................................................................................................................................9 Eligibility..................................................................................................................................................15 3.6 REVENUE SHARING....................................................................................................................................9 Sick Leave Accrual................................................................................................................................15 3.6.1 Conditions for Revenue Sharing............................................................................................................9 Use of Sick Leave..................................................................................................................................15 3.6.2 Revenue Definitions & Revenue Sharing Calculations....................................................................10 Advance of Sick Leave..........................................................................................................................15 3.6.3 Schedule.................................................................................................................................................10 Service Credit for Sick Leave...............................................................................................................16 4 BENEFITS.................................................................................................................................................11 Compensation for Unused Portion....................................................................................•.................16 4.1 EMPLOYEE BENEFITS COMMITTEE..........................................................................................................1 1 4.2 HEALTH & WELFARE...............................................................................................................................1 1 4.2.1 Full Flex Cafeteria Plan.........................................................................................................................11 Rate of Accrual.......................................................................................................................................16 4.2.2 Retirees Health Insurance....................................................................................................................12 Administration of Vacation Leave........................................................................................................17 4.2.3 Pro Rata Benefit Rules..........................................................................................................................12 Vacation Cash-In...................................................................................................................................17 4.2.4 Health and Dependent Care Spending Accounts.............................................................................13 HOLIDAYS.................................................................................................................................................17 4.2.5 Health Insurance Providers..................................................................................................................13 OTHER LEAVE..........................................................................................................................................18 4.3 DENTAL PLAN..........................................................................................................................................13 Bereavement Leave..............................................................................................................................18 4.4 VISION PLAN.............................................................................................................................................13 Jury Duty.................................................................................................................................................18 4.5 RETIREMENT CONTRIBUTION...................................................................................................................13 Military Leave.........................................................................................................................................18 4.5.1 Member Contribution.............................................................................................................................13 Leave of Absence Without Pay............................................................................................................18 4.5.2 Retirement Plans...................................................................................................................................14 Industrial Injury Leave...........................................................................................................................18 4.5.3 Member Cost of Living Rates...............................................................................................................14 Family Medical Leave............................................................................................................................19 4.5.4 Pension Committee...............................................................................................................................14 Catastrophic Leave................................................................................................................................19 4.6 STATE DISABILITY INSURANCE (SDI) AND PAID FAMILY LEAVE(PFL).................................................14 Administrative Leave.............................................................................................................................19 4.7 DEFERRED COMPENSATION....................................................................................................................14 TERMS & CONDITIONS OF EMPLOYMENT.............................................................................19 4.8 GYM REIMBURSEMENT.............................................................................................................................15 HOURS OF WORK.....................................................................................................................................19 4.9 BENEFIT REOPENER................................................................................................................................15 OVERTIME.................................................................................................................................................20 5 LEAVES.....................................................................................................................................................15 5.1 SICK LEAVE..............................................................................................................................................15 5.1.1 Eligibility..................................................................................................................................................15 5.1.2 Sick Leave Accrual................................................................................................................................15 5.1.3 Use of Sick Leave..................................................................................................................................15 5.1.4 Advance of Sick Leave..........................................................................................................................15 5.1.5 Service Credit for Sick Leave...............................................................................................................16 5.1.6 Compensation for Unused Portion....................................................................................•.................16 5.2 VACATION LEAVE.....................................................................................................................................16 5.2.1 Eligibility..................................................................................................................................................16 5.2.2 Rate of Accrual.......................................................................................................................................16 5.2.3 Administration of Vacation Leave........................................................................................................17 5.2.4 Vacation Cash-In...................................................................................................................................17 5.3 HOLIDAYS.................................................................................................................................................17 5.4 OTHER LEAVE..........................................................................................................................................18 5.4.1 Bereavement Leave..............................................................................................................................18 5.4.2 Jury Duty.................................................................................................................................................18 5.4.3 Military Leave.........................................................................................................................................18 5.4.4 Leave of Absence Without Pay............................................................................................................18 5.4.5 Industrial Injury Leave...........................................................................................................................18 5.4.6 Family Medical Leave............................................................................................................................19 5.4.7 Catastrophic Leave................................................................................................................................19 5.4.8 Administrative Leave.............................................................................................................................19 6 TERMS & CONDITIONS OF EMPLOYMENT.............................................................................19 6.1 HOURS OF WORK.....................................................................................................................................19 6.2 OVERTIME.................................................................................................................................................20 6.3 COMPENSATORY TIME POLICY................................................................................................................20 6.3.1 Accrual Limit...........................................................................................................................................20 6.3.2 Overtime Rate........................................................................................................................................20 Local 1 MOU 2018 - 2020 6.4 PROBATIONARY PERIOD..........................................................................................................................20 6.4.1 Purpose of Probation.............................................................................................................................20 6.4.2 Length of Probationary Period.............................................................................................................20 6.4.3 Rejection During Probation..................................................................................................................20 6.4.4 Notification of Rejection........................................................................................................................20 6.4.5 Extension of Probationary Period........................................................................................................20 6.4.6 Regular Status........................................................................................................................................21 6.4.7 Promotion of Probationary Employee.................................................................................................21 6.4.8 Unsuccessful Passage of Promotional Probation.............................................................................21 6.4.9 Lateral Transfer Probation....................................................................................................................21 6.5 TRANSFERS / REASSIGNMENTS...............................................................................................................21 6.5.1 Types of Transfers.................................................................................................................................21 6.5.2 Minimum Qualifications & Probation...................................................................................................22 6.5.3 Transfer Procedures..............................................................................................................................22 6.6 PERSONNEL RULES & REGULATIONS.....................................................................................................22 6.6.1 Confidential Nature of Personnel Records.........................................................................................22 6.6.2 Confidential Nature of Medical Records.............................................................................................22 6.6.3 Outside Employment Policy.................................................................................................................22 6.6.4 Use of City Vehicle................................................................................................................................22 6.6.5 Safety Policy...........................................................................................................................................23 6.7 MISCELLANEOUS......................................................................................................................................23 6.7.1 Hazardous Materials..............................................................................................................................23 6.7.2 Gratuities/ Solicitation of Contributions..............................................................................................23 6.7.3 Retum of City Equipment......................................................................................................................23 6.7.4 Political Activity.......................................................................................................................................23 6.7.5 Employment of Relatives......................................................................................................................23 6.7.6 Labor/ Management Meetings............................................................................................................23 6.7.7 Contract Orientation Work Sessions...................................................................................................24 6.7.8 Harassment Policy.................................................................................................................................24 6.7.9 Work Place Conduct..............................................................................................................................24 7 PROCEDURES........................................................................................................................................24 7.1 DEMOTION & SUSPENSION......................................................................................................................24 7.1.1 Demotion.................................................................................................................................................24 7.1.2 Suspension.............................................................................................................................................24 7.2 TERMINATION OF EMPLOYMENT..............................................................................................................24 7.2.1 Resignation.............................................................................................................................................24 7.2.2 Termination - Layoff (Lack of work or funds).....................................................................................24 7.2.3 Termination - Disciplinary Action.........................................................................................................25 7.2.4 Retirement..............................................................................................................................................25 7.2.5 Rejection During Probation..................................................................................................................25 7.3 DISCIPLINARY ACTION.............................................................................................................................25 7.3.1 Notification of Weingarten Rights........................................................................................................25 7.3.2 Right to Discipline & Discharge...........................................................................................................25 7.3.3 Preliminary Notice..................................................................................................................................26 7.3.4 Disciplinary Action and Appeal............................................................................................................26 7.4 GRIEVANCE PROCEDURE.........................................................................................................................26 7.4.1 Definition.................................................................................................................................................26 7.4.2 Procedure................................................................................................................................................27 7.4.3 Arbitration................................................................................................................................................27 7.4.4 General Provisions................................................................................................................................28 7.5 POSITION RECLASSIFICATION..................................................................................................................28 7.5.1 Purpose...................................................................................................................................................28 7.5.2 Policy.......................................................................................................................................................28 7.5.3 Creation of New Position......................................................................................................................28 7.5.4 Reclassification......................................................................................................................................29 Local 1 MOU 2018 - 2020 iii 7.6 FURLOUGH PROGRAM.............................................................::.............................................................29 7.6.1 Voluntary Time Off (VTO).....................................................................................................................30 7.6.2 Mandatory Time Off (MTO)..................................................................................................................30 7.7 REDUCTION IN FORCE..............................................................................................................................31 7.7.1 Authority..................................................................................................................................................31 7.7.2 Notice.......................................................................................................................................................31 7.7.3 Order of Layoff.......................................................................................................................................31 7.7.4 Seniority..................................................................................................................................................31 7.7.5 Bumping Rights......................................................................................................................................31 7.7.6 Transfer Rights.......................................................................................................................................31 7.7.7 Layoff Procedure Notification...............................................................................................................32 7.8 RE-EMPLOYMENT.....................................................................................................................................32 7.8.1 General Guidelines................................................................................................................................32 7.8.2 Right to Re-Employment.......................................................................................................................32 7.8.3 Time Limits..............................................................................................................................................32 7.8.4 Availability...............................................................................................................................................32 7.8.5 Probationary Status...............................................................................................................................32 7.8.6 Restoration of Benefits..........................................................................................................................32 LIST OF EXHIBITS Exhibit A Salary Schedule for July 1, 2018 — June 30, 2020 Local I MOU 2018 - 2020 iv MEMORANDUM OF UNDERSTANDING between CITY OF SAN RAFAEL and PUBLIC EMPLOYEES UNION LOCAL 1 This Memorandum of Understanding is entered into pursuant to the provisions of Section 3500, et seq. of the Government Code of the State of California. The parties have met and conferred in good faith regarding wages, hours and other terms and conditions of employment for the employees in said representation unit, and have freely exchanged information, opinions and proposals and have reached agreement on all matters relating to the employment conditions and employer-employee relations of such employees. This Memorandum of Understanding shall be presented to the City Council of the City of San Rafael as the joint recommendation of the undersigned parties for salary and employee benefit adjustments for the period commencing July 1, 2018 through June 30, 2020. As used in this Memorandum of Understanding, the words "days" or "working days" shall be deemed to mean those days of the week that the City Hall of the City of San Rafael is open for business, unless there is a specific reference to calendar days. 7 GENERAL PROVISIONS 1.1 INTRODUCTION 1.1.1 Scope of Agreement The salaries, hours, fringe benefits and working conditions set forth have been mutually agreed upon by the designated bargaining representatives of the City of San Rafael (herein -after called "CITY") and the Public Employees Union Local 1 (herein -after called "Local 1") and shall apply to all employees of the City working in the classifications and bargaining unit set forth herein. 1.1.2 Term of MOU This agreement shall be in effect from July 1, 2018 through June 30, 2020. 1.2 RECOGNITION 1.2.1 Bargaining Unit City hereby recognizes Local 1 as bargaining representative for the purpose of establishing salaries, hours, fringe benefits and working conditions for all employees within the Bargaining Unit. 1.2.2 Notice to Employees Whenever a person is hired in any of the job classifications set forth herein, City shall notify such person that Local 1 is the recognized bargaining representative for employees in that classification. Local I MOU 2018 - 2020 1.3 NON-DISCRIMINATION 1.3.1 In General The parties to this contract agree that they shall not, in any manner, discriminate against any person whatsoever because of race, color, age, religion, ancestry, national origin, sex, sexual orientation, marital status, medical condition or disability. Any employee alleging such discrimination should use the internal, administrative process explained in the City of San Rafael's Policy Against Harassment, Discrimination and Retaliation to redress the situation. Such employees shall be entitled to Local 1 representation but are not entitled to seek redress using the grievance procedure of this MOU. 1.3.2 Bargaining Unit Discrimination No member, official, or representative of Local 1 shall, in any way, suffer any type of discrimination in connection with continued employment, promotion, or otherwise by virtue of membership in or representation by the Bargaining Unit. 1.4 INSPECTION OF MEMORANDUM OF UNDERSTANDING Both the City and Local 1 agree to keep duplicate originals of this Memorandum on file in a readily accessible location available for inspection by any employee or member of the public upon request. 1.5 EXISTING LAWS, REGULATIONS & POLICIES This agreement is subject to all applicable laws of the State of California, ordinances, regulations, and policies of the City of San Rafael. 1.6 STRIKES & LOCKOUTS During the term of this Memorandum, the City agrees that it will not lock out employees, and Local 1 agrees that it will not agree to, encourage or approve any strike or slowdown growing out of any dispute relating to the terms of this Agreement. The Bargaining Unit will take whatever lawful steps are necessary to prevent any interruption of work in violation of this Agreement, recognizing with the City that all matters of controversy within the scope of this Agreement shall be settled by established procedures set forth in the City's Charter, ordinances, and regulations, as may be amended from time to time. 1.7 SEVERABILITY If any article, paragraph or section of this Memorandum shall be held to be invalid by operation of law, or by any tribunal of competent jurisdiction, or if compliance with or any enforcement of any provision hereof be restrained by such tribunal, the remainder of this Memorandum shall not be affected thereby, and the parties shall, if possible, enter into meet -and -confer sessions for the sole purpose of arriving at a mutually satisfactory replacement for such article, paragraph or section. 1.8 PREVAILING RIGHTS All matters within the scope of meeting and conferring which have previously been adopted through rules, regulation, ordinance or resolution, which are not specifically superseded by this Memorandum of Understanding, shall remain in full force and effect throughout the term of this Agreement. Local 1 MOU 2018 - 2020 1.9 FULL UNDERSTANDING, MODIFICATION, WAIVER 1.9.1 Understanding The parties jointly represent to the City Council that this Memorandum of Understanding set forth the full and entire understanding of the parties regarding the matters set forth herein. 1.9.2 Waiver & Modification Except as specifically otherwise provided herein, it is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right, and agrees that the other shall not be required to meet and confer with respect to any subject or matter covered herein, nor as to wages or fringe benefits during the period of the term of this Memorandum. The foregoing shall not preclude the parties hereto from meeting and conferring at any time during the term of this Agreement with respect to any subject matter within the scope of meeting and conferring by mutual agreement. Z MMBA 2.1 BARGAINING UNIT RIGHTS 2. 1.1 Bargaining Unit Stewards Designation The Bargaining Unit shall, by written notice to the City Manager, designate certain of its members as Local 1 Representatives. Local 1 Representatives shall be permitted reasonable time for Bargaining Unit activities including grievance representation. In all cases, the Representatives shall secure permission from the Representative's supervisor before leaving a work assignment. Such permission shall not be unreasonably withheld. Local 1 Representatives, for salary discussions, shall be in accordance with Meyers-Milias- Brown (MMB) Act. 2.1.2 Bulletin Boards Authorized representatives of the Bargaining Unit shall be allowed to post Local 1 notices on specified bulletin boards maintained on City premises. 2.1.3 Union Orientation of New Employees Whenever the City hires an employee within any classification covered by this Memorandum of Understanding and represented by the Union, as soon as possible the City will inform the employee that they are represented by the Union, inform the employee of the terms and provisions of this Memorandum of Understanding and will provide said employee with a copy of the current Memorandum of Understanding. The City shall make available up to two hours, at a mutually agreeable time, during the initial thirty (30) days of employment for new employee orientation by the Union. In addition, the City will also provide reasonable advance written notice to the Union of all employee orientations conducted by the City for its members, to include the date, time, and location of the orientation. Written notice shall be via email. The Union will be afforded the opportunity to have the Business Agent and/or a bargaining unit member (City employee) as representatives to meet with the new employee(s). The Union's new employee orientation will be conducted during regular working hours on paid City time and at a mutually agreeable time approved by department management. At no time shall the Union's new employee orientation result in any overtime or additional costs to the City. The Union will provide the City advance notice of the name(s) of the bargaining unit member(s) who they wish to attend the orientation. Local I MOU 2018 - 2020 2.1.4 Employee Information The City shall provide the Union with the name, job title, department, work location, work, home and personal cell phone numbers, home address and personal email address on file with the City for all employees within the Union every 120 days. In addition, a report with similar information of each Union new hire will be provided to the Union within 30 days of the hire date. 2.2 DUES DEDUCTION 2.2.1 Collection of Dues City agrees, upon receipt of a written request by the Bargaining Unit, and upon written consent of the employees involved, to deduct dues and voluntary Bargaining Unit deductions selected by members, as established by Local 1, from the salaries of its members. The Bargaining Unit shall notify the City in writing as to the amount of such dues uniformly required of all members of Local 1. The sums so withheld shall be remitted by City, without delay, along with a list of employees and their respective dues and voluntary deductions. The Bargaining Unit bears responsibility for allocating dues and voluntary deductions pursuant to employees' requests. The employee's earnings must be regularly sufficient after other legal and required deductions are made to cover the amount of the dues or service fees check off authorized. When an employee is in a non -pay status for an entire pay period, no withholding will be made to cover the pay period from future earnings. In the case of an employee who is in a non -pay status during only part of the pay period, and the salary is not sufficient to cover the full withholding, no deduction shall be made. In this connection, all other legal and required deductions have priority over Local 1 dues. 2.2.2 Dues Collection during Separation from Employment The provisions specified above (Section 2.2.1.) shall not apply during periods of separation from the Bargaining Unit by any such employee, but shall reapply to such employee commencing with the next full pay period following the return of the employee to representation by the Bargaining Unit. The term separation includes transfer out of the Bargaining Unit, layoff, and leave without pay absences with duration of more than five (5) working days. 2.2.3 Agency Shop The parties hereto recognize that within the Agency shop provisions of this agreement, Bargaining Unit employees may opt to join Local 1 or register as a fee payer during the first thirty (30) days of their employment. Neither the City nor the Bargaining Unit will discriminate against any employee because of the exercise of their statutory rights. Local 1 agrees to its obligation to represent all the employees in the Bargaining Unit fairly and equally, without regard to their membership in the Bargaining Unit. Therefore, any employee of the City, who is a member of Local 1, or who subsequently joins, and all employees in the Bargaining Unit hired, as a condition of continued employment, are required to either belong to Local 1 or to pay to Local 1 an amount equal to a fair share percentage of that which would be paid by an employee who decides to become a member of the Bargaining Unit at the time of employment. 2.2.4 Indemnification Moneys withheld by the City shall be transmitted to the Treasurer (as identified in writing by Local 1) at the address specified. The Bargaining Unit shall indemnify, defend, and hold the City harmless against any claims made, and against any suit instituted against the City on account of check off of employee organization dues or service fees. In addition, the Bargaining Local I MOU 2018 - 2020 Unit shall refund to the City any amount paid to it in error upon presentation of supporting evidence. 2.3 MANAGEMENT RIGHTS The City reserves, retains, and is vested with, solely and excessively, all rights of management which have not been expressly abridged by specific provision 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: 1. To manage the City generally and to determine the issues of policy; 2. To determine the existence of facts which are the basis of the management decision; 3. To determine the necessity of any organization or any service or activity conducted by the City and expand or diminish services; 4. To determine the nature, manner, means, technology and extent of services to be provided to the public; 5. Methods of financing; 6. Types of equipment or technology to be used; 7. To determine and/or change the facilities, methods, technology, means and size of the work force by which the City operations are to be conducted; 8. To determine and change the number of locations, re -locations and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right (after effect bargaining) to contract for or subcontract any work or operation of the City; 9. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments; 10. To relieve employees from duties for lack of work or other legitimate reasons; 11. To discharge, suspend, demote or otherwise discipline employees for proper cause in accordance with the provisions and procedures set forth in City Personnel Rules and Regulations and this MOU; 12. To determine job classifications and to reclassify employees; 13. To hire, transfer, promote and demote employees in accordance with this Memorandum of Understanding and the City's Rules and Regulations; 14. To determine policies, procedures and standards for selection, training and promotion of employees; 15. To establish and modify employee and organizational performance and productivity standards and programs including but not limited to, quality and quantity standards; and to require compliance therewith; 16. To maintain order and efficiency in its facilities and operations; 17. 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; 18. To take any and all necessary action to carry out the mission of the City in emergencies. The City and Local 1 agree and understand that if, in the exercise of any of the rights set forth above, the effect of said exercise of rights by the City impacts an area within the scope of representation as set forth in the Meyers/Milias/Brown Act, case law interpreting said acts, and/or Federal law, the City shall have the duty to meet and confer with the Bargaining Unit regarding the impact of its decision/exercise of rights. Local 1 MOU 2018 - 2020 3 COMPENSATION 3.1 GENERAL WAGES AND COMPENSATION 3.1.1 Pay Dates City employees are paid twice per month on the 15th and the last working day of the month. When a holiday falls on a payday, the payday will be transferred to the following day of regular business unless Finance is able to complete the payroll by the previous work day. The method of distributing the payroll shall be established by the Finance Director. 3.1.2 General Wage Increase Effective the first full pay period in July 2018 or upon approval by the City Council, whichever is latest, salary ranges for classifications in this unit shall be increased by 2.0%. Effective the first full pay period in July 2019, salary ranges for classifications in this unit shall be increased by 2.0%. Salary rates for all bargaining unit positions are shown in the salary table attached as Exhibit A. 3.1.3 One -Time Payment The following one-time payment is limited to the two years cited in this agreement and is not scheduled to recur in the future: Employees represented by the bargaining group will receive a one-time, non -pensionable payment of $4,000 to revise section 4.2.1 to tie the 3% health inflator to the Kaiser Bay Area Premium rate increase up to a maximum of 3% and reduce the "employee only" Flex Dollar Allowance. The $4,000 payment will be split as follows: $2,000 will be paid with the first pay period in July 2018 or upon approval by the City Council, whichever is latest, and $2,000 will be paid with the first pay period in July 2019. This payment will not contribute to Classic or PEPRA employees' pensions and is subject to normal payroll taxation. NOTE: The one-time payments for part-time employees will be prorated based on the full-time equivalent (FTE) of the position. For example, an employee filling a half-time or 0.5 FTE position will receive a receive a $1,000 payment minus applicable taxes on the same schedule as described above for full-time employees. This payment will not contribute to employees' pensions. 3.1.4 Definitions Total Compensation shall be defined as: Top step salary (excluding longevity pay steps), educational incentive pay, confidential pay, holiday pay, uniform allowance, employer paid deferred compensation (except for such portion that may be part of employee cafeteria plan), employer's contribution towards employees' share of retirement, employer's retirement contribution, employer paid contributions toward insurance premiums for health, life, long term disability, dental and vision plans, and employer paid cafeteria/flexible spending accounts. The CPI shall be the percentage change in the San Francisco -Oakland -San Jose Area All Urban Consumer index as published by the Bureau of Labor Statistics for the one-year period ending each October during the term of the contract. Local I MOU 2018 - 2020 6 3.1.5 Compensation Plan The Compensation Plan adopted by the City Council shall provide for salary schedules, rates, ranges, steps and any other special circumstances or items related to the total compensation paid employees. Each position within the classified services shall be allocated to its appropriate class in the classification plan on the basis of duties and responsibilities. Each class shall be assigned a salary range or a rate established in the salary plan. All persons entering the classified service shall be compensated in accordance with the salary plan then in effect. All initial employments shall be at the first step of the salary range. The City Manager or his/her designee may authorize, upon the recommendation of the Appointing Authority, a position at an appropriate higher salary when, in his/her opinion, it is necessary in order to obtain qualified personnel or when it appears that the education or experience of a proposed employee is substantially superior to the minimum requirements of the class and justifies a beginning salary in excess of the first step. 3.2 STEP INCREASES 3.2.1 Entry Level Step All initial employment shall be at the first step of the salary range, provided that the City Manager may make an appointment to a position at an appropriate higher salary when, in his/her opinion, it is necessary to obtain qualified personnel, or when it appears that the education or experience of a proposed employee is substantially superior to the minimum requirements of the class and justifies a beginning salary in excess of the first step. 3.2.2 Consideration for Step Increases An employee may be considered for an annual salary step increase in accordance with their anniversary date and the parameters of the salary schedule, as referenced in Exhibit A. Unless otherwise noted, salary schedule increases within established salary ranges are scheduled at yearly intervals. Advancement to a higher salary step within an established salary range is granted for continued improvements and efficient and effective work by the employee in the performance of his/her duties. 3.2.3 Merit Increases Accelerated merit performance step increases of five percent (5%) may be granted an employee based upon the recommendation of the Department Director and approval of the City Manager. Employees at the maximum step of their salary range may be granted a merit performance step increase of five percent (5%) above and beyond their salary range, either in a one-time lump sum payment or as a percent increase per paycheck for the designated period of time. Merit pay awards may be granted in recognition of meritorious performance on complex special project(s) of significant value to the organization and beyond the scope of regular duties in response to extraordinary conditions. A merit step increase may be effective for up to one (1) year. A merit step increase may be withdrawn and is not a disciplinary action and is not appealable. 3.2.4 Anniversary Date Effective 1-1-89, the anniversary date for employees promoted on or after this date shall remain unchanged. Based upon job performance, as measured by a Performance Evaluation, employees may receive consideration for a step increase within their salary range on their anniversary date. Local I MOU 2018 - 2020 3.2.5 Promotions Employees promoted to higher-level positions shall be placed at the step in the new salary range that will provide, at a minimum, a five (5%) increase (unless that would exceed the top step in the salary range). 3.2.6 Performance Evaluations Prior to the completion of the probationary period, a minimum of one performance evaluation report shall be reviewed with the employee, but such report and review shall not be required prior to separating an employee during the probationary period. Upon completion of the probationary period, a performance report shall be prepared and reviewed yearly thereafter for each employee in the Classified Service, as a means of determining whether in -grade salary increases are merited, and/or as a means of improving employee performance and communication between supervisors and subordinates. 3.3 SALARY CHANGE ON RECLASSIFICATION If an occupied position is reclassified the incumbent shall be affected as outlined below: 3.3.1 To a Lower Classification When a position is re -allocated to a lower classification, the incumbent is either: 1. Transferred to a vacant position in the former classification; or 2. If the incumbent's current salary is greater than the top step of the lower classification, Y - rated at the current salary until the salary of the lower classification is at or above the Y - rate. 3.3.2 To a Different Classification with the Same Salary Range When a position is reallocated to a different classification with the same salary range, the incumbent shall be granted the same status in the new classification, in which he/she shall be paid at the same step of the range and shall maintain the same salary rights. 3.3.3 To a Higher Classification When a position is reclassified to a classification with a higher salary range, the incumbent is moved into the higher classification with the position, except in the circumstances prescribed below. Placement in the salary range shall be in accordance with the appropriate salary schedule. If the duties upon which the reclassification are based could have been assigned to any of a number of employees in that classification within the division or department, then a promotional exam is held for the reclassified position. Such an exam is a departmental only recruitment limited to employees within that classification. If the incumbent is not successful in this competitive process, she/he is assigned to the position vacated by the promotion. 3.4 OUT OF CLASS COMPENSATION Employees assigned in writing by their supervisor to perform work in a higher paid classification, shall be compensated at a rate 5% greater than the employee's current base salary. The out -of - class increase shall be retroactive to the first day of the assignment. If the assignment extends beyond four consecutive weeks, then the employee shall be compensated at the lower step of the classification within which the duties fall if that is greater. f>�ituC�Ilfd�lE:1�3�Ie��] 3.5 ADDITIONAL PAY 3.5 .1 Confidential Pay Effective 2009, the Confidential Pay incentive for all members is included in the base salary. 3.5.2 Educational Pay Education Pay is included in the base salary. 3.5.3 Bilingual Pay Within the job classifications represented by the Bargaining Unit, provisions are hereby established whereby an employee may receive bilingual pay for full fluency in a foreign language. Full fluency is defined as a skill level that will allow the employee to fully assist someone else who does not speak English in coping with situations or problems by translating for, conversing with and/or reading or writing written material. An employee can petition to his/her Department Director for this bilingual pay incentive. With the Department Director's recommendation and on review by the Human Resources Director and approval of the City Manager, the employee may begin to receive this bilingual pay incentive. Criteria for approval of the bilingual pay incentive by the City Manager include: a. Certification by a recognized school of the appropriate skill level; and/or b. Demonstrated ability of the proficiency level on the job; and c. Department Director's recommendation and statement that the bilingual skill of the employee can be of value to the department and the employee in the completion of their regular work assignments. An employee approved for the bilingual pay incentive shall receive an additional $150.00 per month above their base salary. This bilingual pay incentive shall be reviewed annually and as long as the employee demonstrates (by work experience or re -testing, as determined by the City of San Rafael) the full fluency skill level; and as long as the Department Director indicates the value of this skill to the department and the employee in the completion of their regular work assignments. Removal of the bilingual pay incentive would be considered a non -disciplinary action and as such would not be subject to any appeal/grievance procedure. 3.5.4 Uniform Allowance Any Local 1 member required to purchase a uniform to meet departmental regulations shall be reimbursed for such cost. 3.6 REVENUE SHARING 3.6.1 Conditions for Revenue Sharing Employees in the bargaining unit positions defined in this MOU shall receive Revenue Sharing Increases, effective January 1 of each year of the contract, in addition to the Contract Compensation Increase (if any), if the following conditions are met: a. If the CPI increase, as defined in section 3.1.3, is greater than the Contract Compensation Increase, and Local 1 MOU 2018 - 2020 9 b. If General Tax Revenues have resulted in revenues being available for distribution, based upon the formulas defined in Section 3.6.2, and, c. The "net change in General Fund Balance", as defined in Section 3.6.2, as presented in the previous fiscal year's annual audited financial statements, is positive and, The City's General Fund Emergency and Cash Flow reserve at the end of the previous fiscal year contains at least 10% of the General Fund budgeted expenditures for that same year. If all of the above four conditions are met, then a Revenue Sharing salary increase shall be paid prospectively, in accordance with the schedule below, to bring the combination of the Contract Compensation Increase and the Revenue Sharing Increase up to the level of CPI. However, in no event shall the Combined Contract Compensation Increase and Revenue Sharing Increase result in a total compensation increase that exceeds 5% for the fiscal year under review. 3.6.2 Revenue Definitions & Revenue Sharing Calculations Net Change in General Fund Balance is determined in the course of the City's annual financial audit and presented as "net change in fund balance" in the City's published financial statements. General Tax Revenues shall be defined to include the following taxes: Sales Tax, Property Tax (Secured, Unsecured and Unitary), Motor Vehicle License Fees, Property Transfer Tax, Hotel Occupancy Tax, Business License Tax and Franchise Fees. No other revenue sources of the City will be included in this definition. If General Tax Revenues of the City for the fiscal year previous to this contract year (i.e., FY 2012-13) exceed General Tax Revenues of the City for the prior fiscal year (i.e., FY 2011-12) , then the members of the bargaining unit shall be entitled to apply two percent (2%) of one-half (1/2) of the excess of fiscal year General Tax Revenues over prior fiscal year General Tax Revenues adjusted for 75% of the total compensation increases provided to members for the contract year, in accordance with the schedule below, for a Revenue Sharing Total Compensation adjustment. 3.6.3 Schedule a. September 7th- General Tax Revenues. The City shall make known to the Bargaining Unit if General Tax Revenues of the most recently ended fiscal year have grown from the prior fiscal year on September 7th of each year of this contract. If no growth in General Tax Revenues has taken place, there shall be no Revenue Sharing for that fiscal year of the contract. b. November 15th - Net Change in General Fund Balance and the Funding Level of the City's General Fund Emergency and Cash Flow Reserve. By November 15th of each year, the City shall make known to the Bargaining Unit whether there is a positive change in the General Fund Balance when the most recently ended fiscal year is compared to the previous one. At the same time, the City shall make known to the Bargaining Unit whether the funding level of the City's General Fund Emergency and Cash Flow reserve is at or above 10% of budgeted expenditures. If these two conditions are not met, then no Revenue Sharing shall take place for that contract year. c. November 30th - CPI. If the conditions for revenue sharing have been met for the contract year, the City shall identify the change in CPI for the year in October and make the figure known to the Bargaining Unit by November 30th. d. January 11 — Base Monthly Pay Increases. The January 1St pay period shall be the start date (for paycheck date of January 31 st) for Revenue Sharing Salary increases. Local I MOU 2018 - 2020 10 4 BENEFITS 4.1 EMPLOYEE BENEFITS COMMITTEE Both parties agree to continue to utilize the Employee Benefits Committee for ongoing review of benefit programs, cost containment and cost savings options. The Committee shall be made up of representatives of the SEIU, SEIU - Childcare, Police, Police Mid -Management, Fire, Fire Chief Officers Association, Western Council of Engineers, Local 1, Mid -Management and Management employees. 4.2 HEALTH & WELFARE 4.2.1 Full Flex Cafeteria Plan Effective January 1, 2010, the City implemented a Full Flex Cafeteria Plan for active employees, in accordance with IRS Code Section 125. Active employees participating in the City's Full Flex Cafeteria Plan shall receive a monthly flex dollar allowance to purchase benefits under the plan. The monthly flex dollar allowance effective the paycheck of December 15, 2018 shall be: For employee only: $ 779.86 For employee and one dependent: $1,559.72 For employee and two or more dependents: $1,719.00 Flex dollar allowances shall increase on the December 15`h paycheck of each subsequent year up to a maximum of three percent (3%) on an annual basis, based on but not to exceed the Kaiser Bay Area premium rate increase for the upcoming calendar year. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents, an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) contribution, as determined by CalPERS on an annual basis. This portion of the monthly flex dollar allowance is identified as the City's contribution towards PEMHCA. The balance of the monthly flex dollar allowance (after the PEMHCA minimum contribution) may be used in accordance with the terms of the cafeteria plan to purchase health benefits, or may be converted to taxable income. Conditional Opt -Out Arrangement: An employee may elect to waive the City's health insurance coverage and receive a $300 monthly Opt -Out payment in accordance with the terms of the cafeteria plan, and the Affordable Care Act, if the employee complies with the following conditions: 1) The employee certifies that the employee and all individuals in the employee's tax family for whom coverage is waived have alternative Minimum Essential Coverage as defined by the Patient Protection and Affordable Care Act through a provider other than a federal marketplace, a state exchange, or an individual policy. 2) During the City's annual open enrollment period, the employee must complete an annual written attestation confirming that the employee and the other members of the employee's tax family are enrolled in alternative Minimum Essential Coverage. The employee agrees to notify the City no later than 30 days if the employee or other member(s) of the employee's tax family lose coverage under the alternative Minimum Coverage Plan. 3) The employee understands that the City is legally required to immediately stop conditional opt -out payments if City learns that the employee and/or members of the employee's family do not have the alternative Minimal Essential Coverage. Local 1 MOU 2018 - 2020 The City reserves the right to modify at any time, the amount an employee is eligible to receive under this paragraph, if required by IRS Cafeteria Plan regulations, other legislation, or Federal and/or California agency guidance. The City shall be responsible for paying premiums for a life insurance and Accidental Death and Dismemberment (AD&D) policy for each employee. The life and AD&D policy shall provide a $5,000 life insurance and a $5,000 AD&D benefit. The City shall be responsible for paying premiums for a Long -Term Disability Policy for each employee that satisfies the eligibility provisions of the long-term disability policy. The Long -Term Disability policy shall provide for salary replacement of 66.67% of an individual's salary up to a maximum disability benefit of $1,000 per month. 4.2.2 Retirees Health Insurance Employees represented by Local 1 who retire from the Marin County Employees' Retirement Association (MCERA) within 120 days of leaving their City of San Rafael position (and who comply with the appropriate retirement provisions under the MCERA laws and regulations) are eligible to continue in the City's retiree group health insurance program offered through PEMHCA. The City's contribution towards retiree coverage shall be the PEMHCA minimum contribution as determined by CalPERS on an annual basis. a. Employees hired on or before January 1, 2010. The City shall make a monthly retiree health insurance payment into a Retiree Healthcare Reimbursement Trust (Retiree HRA Trust) on behalf of employees hired before January 1, 2010 and who retire from the City of San Rafael as described in this Section. The City's total payment, which includes the PEMHCA minimum contribution, shall not exceed $659 per month. The City's retiree health contribution shall continue for the lifetime of the retiree and retiree's spouse, in accordance with PEMHCA eligibility provisions for coverage. b. Employees hired on or after January 1, 2010 and who meet the eligibility requirements for retiree health insurance are eligible to continue in the City's group health insurance program. The City's maximum contribution towards retiree coverage under this subsection 4.2.3.b, shall be the PEMHCA minimum contribution as determined by CalPERS on an annual basis. The City shall not be responsible for making any contributions towards the cost of coverage of the retiree's spouse, registered domestic partner, or dependents upon the employee's retirement from the City in excess of the PEMHCA minimum contribution as required by CalPERS. The City shall additionally make available a retiree health care trust to enable these employees (hired on or after January 1, 2010) to prefund retiree health care premiums while employed by the City. The retiree health care trust shall be funded by annual conversion of 50 hours of sick time in service on July 1 of each year, provided an employee has a remaining balance of 75 hours of sick leave time after the conversions. 4.2.3 Pro Rata Benefit Rules Employees covered by this Agreement who work less than full time but more than twenty (20) hours per week on a regular basis shall be eligible to receive: a) pro -rated leave benefits; b) a pro -rated share of the monthly dollar contribution made by the City to be used for enrollment in City offered group health, life, and long term disability insurance plans which the employee may be eligible for based upon the regular hours the employee works, and c) pro -rated share shall be equivalent to the part time employee position's ratio of hours worked to full time equivalency. Local I MOU 2018 - 2020 11 4.2.4 Health and Dependent Care Spending Accounts City will offer as part of its Section 125 Plan, for as long as such a plan is desired by Local 1 and available pursuant to the IRS Code, Health and Dependent Care Spending Accounts. The Flexible Spending Accounts offered by the City include: a. Healthcare Spending Account: Out-of-pocket medical expenses that qualify under the IRS Code effective January 1, 2003 at IRS Code limit, not to exceed $2,500. Employees are responsible to pay the monthly administrative fee and any increase established by the third -party administrator. b. Dependent Care Spending Account: Dependent care expenses that qualify under the IRS Code at the IRS Code limit (currently $5,000). Employees are responsible to pay the monthly administrative fee and any increase established by the third -party administrator. Premium Only Plan: Excess Medical premiums shall be deducted from employee's pay with pre-tax dollars as long as such deduction is allowable under the applicable IRS Code. The City shall establish an annual enrollment period and each employee must re -enroll annually for either plan noted in a. and/or b. above. The City shall have the authority to implement changes to the 125 Programs to comply with changes in applicable IRS laws without having to go through the meet and confer process. 4.2.5 Health Insurance Providers The City shall have the option, after meeting and consulting with representatives of Local 1, of either contracting with the Public Employees Retirement System (PERS) Health Benefits Division for health insurance or contracting directly with some or all of the providers of health insurance under the PERS program; provided, however, contracting directly with the providers shall not cause any material reduction in insurance benefits from those benefits available under the PERS program. 4.3 DENTAL PLAN The City will provide a dental insurance program which offers 100% coverage for diagnostic and preventative care; $25.00 deductible on corrective care (80/20); and an 80% payment of eligible costs associated with crown and cast restoration per patient per calendar year and orthodontic coverage for eligible dependents (50/50). The dental provider will provide payments for covered services at the percentage indicated in the plan booklet up to a maximum of $1,500 for each enrollee in each calendar year. Dental insurance enrollment will be available to part time, permanent employees working at least 20 hours per week (FTE level of position). The City's contribution towards the monthly dental insurance premium will be prorated based on the FTE level of the part time employee. 4.4 VISION PLAN The City will contract for and pay for a vision plan for employee only vision benefits. Employees will be eligible to enroll qualified family members and will pay the premium for such enrollment. 4.5 RETIREMENT CONTRIBUTION 4.5.1 Member Contribution Local 1 members shall pay the full share of the employee's contribution to the Marin County Retirement System. Local I MOU 2018 - 2020 Effective when feasible in accordance with MCERA and City administrative requirements all unit employees will pay an additional contribution of one percent (1%) of pensionable compensation toward the normal cost of pension provided by the Marin County Employees Retirement Association, in addition to the current employee contribution towards pension as determined by MCERA. The City of San Rafael acknowledges that under its current practice, the employee's share of their retirement contribution is deducted with pretax dollars. This practice will continue until changed through the Meet and Confer process or until IRS regulations change. 4.5.2 Retirement Plans The City shall provide the Marin County Employee Retirement Association 2.7% at 55 - retirement program to all eligible Local 1 members, as defined under the 1937 Act Government Code Section 31676, subject to Marin County Employee Retirement Association procedures and regulations and applicable 1937 Act laws that govern such plans. This is based on an employee's single highest year of compensation. Employees hired on or after July 1, 2011 will receive an MCERA retirement benefit at the formula 2% at 55, calculated based on the average of their highest three years of compensation, in accordance with MCERA regulations. The annual pension adjustment shall be a maximum of 2% COLA. Minimum retirement age is 55. Employees hired by the City on or after January 1, 2013 who are defined as "new members" of MCERA in accordance with the Public Employees' Pension Reform Act (PEPRA) of 2013, shall be enrolled in the MCERA 2% @ 62 plan for Miscellaneous members. Final compensation will be based upon the highest annual average compensation earnable during the thirty-six (36) consecutive months of employment immediately preceding the effective date of his or her retirement or some other period designated by the retiring employee. 4.5.3 Member Cost of Living Rates Local 1 members who are eligible to participate in the Marin County Employee Retirement Association will pay their full share of members' cost of living rates as allowed under Articles 6 and 6.8 of the 1937 Retirement Act. Local 1 member contribution rates include both the basic and COLA portions (50% of COLA is charged to members as defined in the 1937 Act). 4.5.4 Pension Committee A representative of the Union will participate in the City-wide pension committee. 4.6 STATE DISABILITY INSURANCE (SDI) AND PAID FAMILY LEAVE (PFL) Employees will have the full premium cost for SDI or PFL coverage automatically deducted from their paycheck and no City contribution will be made toward participation in the plan. It is incumbent upon the employee to keep the City advised of their medical status and eligibility for SDI or PFL. With this notification, SDI or PFL benefits, as determined by the State, shall be integrated with accrued sick and vacation leave. 4.7 DEFERRED COMPENSATION Effective simultaneously with the increase in employee contribution by one percent (1 %) to be contributed toward the normal cost of pension benefits provided by MCERA as described in Article 4.1.4, the City will contribute one percent (1%) of pensionable compensation toward a City -provided deferred compensation plan. Local I MOU 2018 - 2020 14 The City will make an additional contribution equivalent to one and six hundredths percent (1.06%) of base pay into a City -provided deferred compensation plan for each member of the unit to be paid in installments on a pay period basis following agreement. 4.8 GYM REIMBURSEMENT Employees are eligible to receive up to $16.50 per month reimbursement for paid gym membership. Such reimbursement shall be processed annually and reported as taxable income to the employee. 4.9 BENEFIT REOPENER The City may reopen negotiations during the term of this Agreement to meet and confer on a replacement health, dental and life insurance/AD&D plan provider. 5 LEAVES 5.1 SICK LEAVE 5.1.1 Eligibility Sick leave with pay shall be granted to each eligible employee. Sick leave may not be used at an employee's discretion, but shall be allowed only in case of necessity and actual sickness or disability. The employee is required to notify employee's immediate supervisor or Department Director according to department Rules and Regulations at the beginning of his/her daily duties. The City has the right to request medical verification from an employee who is absent from his/her duties for three (3) or more consecutive work days. 5.1.2 Sick Leave Accrual All eligible full-time employees shall earn sick leave credits at the rate of one (1) working day per month commencing with the date of employment. Unused sick leave may be accumulated to any amount but a cap exists for payoff purposes (see Section 5.1.6). The sick leave accrual rate is prorated for eligible part time employees. 5.1.3 Use of Sick Leave An employee may use accrued sick leave during their probationary period. An employee eligible for sick leave with pay shall be granted such leave for the following reasons: 1. Personal illness of the employee or illness within the immediate family (family member means an employee's spouse, registered domestic partner, and any unmarried child, including adopted child, a stepchild, or recognized natural child who lives with the employee in a regular parent-child relationship), or physical incapacity of the employee resulting from causes beyond the employee's control; or 2. Enforced quarantine of the employee in accordance with community health regulations; or 3. Medical appointments that cannot be scheduled during non -working hours shall be charged to sick leave. 4. Personal illness of an employee's parent that requires the employee to attend to their care. 5.1.4 Advance of Sick Leave Whenever circumstances require, and with the approval of the City Manager, sick leave may be taken in advance of accrual up to a maximum determined by the City Manager, provided that any employee separated from the service who has been granted sick leave that is un -accrued at Local I MOU 2018 - 2020 1 � the time of such separation shall reimburse the City of all salary paid in connection with such un -accrued leave. 5.1.5 Service Credit for Sick Leave Employees who retire from the City of San Rafael within 120 days of leaving City employment (excludes deferred retirements) shall receive employment service credit for retirement purposes only, for all hours of accrued, unused sick leave (exclusive of any sick leave hours they are eligible to receive and they elect to receive in compensation for at the time of retirement (see Section 5.1.6). Employees hired on or after July 1, 2009 are not eligible to receive employment service credit of all accrued, unused sick leave for retirement purposes. 5.1.6 Compensation for Unused Portion Upon termination of employment by resignation, retirement or death, a regular employee who leaves the City service in good standing shall receive compensation for all accumulated unused sick leave based upon the following formula: a rate of three percent (3%) for each year of service (i.e., 3% times number of employment service years). The maximum number of accumulated, unused sick leave an employee may be compensated for upon termination of employment is 600 hours. See Section 5.1.5 regarding service credit option for accumulated, unused sick leave that the employee is not compensated for upon termination. 5.2 VACATION LEAVE 5.2.1 Eligibility Annual vacation with pay shall be granted each eligible employee. Vacation leave accrued shall be prorated for those employees working less than full time. Employees will be permitted to use accrued vacation leave after six (6) months of employment subject to the approval of the Department Director. 5.2.2 Rate of Accrual Vacation benefits shall accrue during the probationary period. Each regular full-time employee (part time regular are prorated) shall accrue vacation at the following rate for continuous service. Each service year in the chart begins on the first working day and ends on the last day of the service year: Service Year Annual Hours Hours Per Month 1 75.000 hours 6.2500 2 75.000 hours 6.2500 3 75.000 hours 6.2500 4 112.500 hours 9.3750 5 117.867 hours 9.8222 6 123.234 hours 10.2695 7 128.601 hours 10.7167 8 133.968 hours 11.1640 9 139.335 hours 11.6110 10 144.702 hours 12.0580 11 150.000 hours 12.5000 12 157.500 hours 13.1250 Local I MOU 2018 - 2020 16 13 165.000 hours 13.7500 14 172.500 hours 14.3750 15 180.000 hours 15.0000 16 plus 187.500 hours 15.6250 When an employee is on an approved leave without pay, vacation accrual is prorated based upon paid hours in the pay period. 5.2.3 Administration of Vacation Leave The City Manager, upon the recommendation of the Department Director, may advance vacation credits to any permanent regular and permanent part time employee. No employee may accrue more than 250 hours. Vacation accruals will resume once the employee's accumulated vacation balance falls below the allowable cap limit. The time at which an employee may use his/her accrued vacation leave and the amount to be taken at any one time, shall be determined by employee's Department Director with particular regard for the needs of the City but also, insofar as possible, considering the wishes of the employee. In the event that one or more City holidays falls within an annual vacation leave, the vacation hours that shall be charged against any employee's accrued vacation shall be those hours that the employee is regularly scheduled to work. Employees who terminate their employment shall be paid in a lump sum for all accrued vacation leave earned prior to the effective date of termination. 5.2.4 Vacation Cash -In An employee who has taken at least ten (10) days of vacation in the preceding twelve (12) months may request that accrued vacation, not to exceed seven (7) days, be converted to cash payments and the request may be granted at the discretion of the City Manager. Employees cannot cash in more than seven (7) days of vacation in any one twelve (12) month period. 5.3 HOLIDAYS All employees who are required to work on a day designated as an authorized holiday, other than a day on which an election is held throughout the state, shall be paid at the applicable rate of pay for the number of hours actually worked. When a holiday falls on Saturday or Sunday, the Friday preceding a Saturday holiday or the Monday following a Sunday holiday shall be deemed to be a holiday in lieu of the day observed. The following holidays will be observed January 1st New Year's Day The third Monday in January Martin Luther King Jr. Day The third Monday in February Washington's Birthday March 31st Cesar Chavez Day The last Monday in May Memorial Day July 4th Independence Day The first Monday in September Labor Day November 11th Veteran's Day The fourth Thursday in November Thanksgiving Day Local I MOU 2018 - 2020 The fourth Friday in November Day after Thanksgiving December 25`h Christmas Day In addition to designated holidays, employees in this Bargaining Unit receive two (2) floating holidays. Floating holidays not used are added to employee's vacation balance. 5.4 OTHER LEAVE 5.4.1 Bereavement Leave In the event of the death of an employee's spouse, registered domestic partner, child, parent, brother, sister, in-laws, grandparent, grandchild or relative who lives or has lived in the home of the employee to such an extent that the relative was considered a member of the immediate family and/or another individual who has a legal familial relationship to the employee and resided in the employee's household, up to three (3) days within the State and up to five (5) days out-of-state may be granted for bereavement leave. In those cases where the death involves an individual who had such a relationship with the employee, as defined above, the employee shall sign a simple affidavit describing the relationship and submit this to the Department Director as part of the request for bereavement leave. 5.4.2 Jury Duty Employees required to report to jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided that the employee provides advance notice to the Appointing Authority and remits to the City all per diem service fees except mileage or subsistence allowance within thirty days from the termination of such duty. 5.4.3 Military Leave Military leave shall be granted in accordance with the State of California Military and Veteran's Code as amended from time to time. All employees entitled to military leave shall give the appointing authority and the Department Director an opportunity, within the limits of military regulations, to determine when such leave shall be taken. 5.4.4 Leave of Absence Without Pay Leave of absence without pay may be granted by the City Manager upon the written request of the employee. Accrued vacation leave must be exhausted prior to the granting of leave without pay. 5.4.5 Industrial Injury Leave For benefits under Workers Compensation, an employee should report any on the job injury to his/her supervisor as soon as possible, preferably within twenty-four (24) hours. The Human Resources Department coordinates benefits for Worker's Compensation claims. For further information, see the City's Workers' Compensation policy located on the Intranet at https://intranet.citvofsanrafael.org. Employees of the City who have suffered any disability arising out of and in the course of their employment as defined by the Worker's Compensation Insurance and Safety Act of the State of California are entitled to all benefits allowed them by the Workers' Compensation Insurance and Safety Act of the State of California. Temporary disability payments (TD) are made to all employees (full and part-time) when a physician reports an employee is unable to perform their job duties due to an industrial injury and the City cannot accommodate the restrictions mandated by their physician. TD is set by Local I MOU 2018 - 2020 18 State law and is approximately two-thirds of full salary with state -mandated minimums and maximums. For full-time, regular employees, however, the City augments TD payments with salary continuation, as follows: Workers Compensation leave payments shall not exceed the employee's regular full pay for the first three (3) calendar months and three-fourths (3/4) of the regular full pay for the following six (6) calendar months. Sick Leave Usage Post Industrial Injury/Illness The following rule applies to employees who have an accepted industrial injury/illness: Available accrued sick leave cannot be used for more than 60 calendar days after one of the following has been determined: a. The employee has reached maximum medical improvement and/or has been determined "permanent and stationary." b. The employee has been determined to be unable to return to their usual and customary occupation, with or without reasonable accommodation. Given the above has occurred next steps would include: a. The interactive process; attempt to locate other appropriate employment within the City b. If none available proceed with termination process, including disability retirement application and/or Skelly process, if appropriate. 5.4.6 Family Medical Leave Family leave shall be granted in accordance with the federal Family and Medical Leave Act of 1993 and the California Family Rights Act of 1991. Requests for Family Care Leave are submitted to the employee's Department Director for approval and reviewed by the Human Resources Director for consistency with the law prior to approval. Employees approved for this type of leave must use appropriate accrued and unused vacation leave and/or compensatory time before going on leave without pay status. Accrued and unused sick leave may be used if appropriate and requested. Sick leave usage is to be consistent with sick leave provisions of the MOU. To be eligible for this family leave benefit, an employee must have worked continuously for the City of San Rafael for at least 12 months and have worked a minimum of 1250 hours in the previous 12 -month period. For details, please see the City's FMLA policy located on the Intranet at https:Hintranet.cityofsanrafael. or -g. 5.4.7 Catastrophic Leave Catastrophic Leave shall be in accordance with the City-wide Catastrophic Leave Policy located on the City's Intranet at https:Hintranet.citvofsanrafael.org. 5.4.8 Administrative Leave Employees filling positions designated as exempt from overtime shall receive five (5) days of Administrative Leave each calendar year subject to the approval of the Department Director and the City Manager. Unused Administrative Leave shall not carry over from one calendar year to the next, nor shall unused Administrative Leave Balances be paid to an exempt confidential employee upon his/her resignation. 6 TERMS & CONDITIONS OF EMPLOYMENT 6.1 HOURS OF WORK The WORK WEEK will reflect thirty-seven and one-half (37.5) hours for all represented job classes. Unless otherwise designated, the normal business hours for vacation, sick and Local I MOU 2018 - 2020 19 administrative leave deduction and sick and administrative leave accrual purposes shall be 7.5 hours per day. 6.2 OVERTIME Overtime shall mean actual time authorized and worked beyond thirty-seven and one half (37.5) hours in the regular work week. A work or duty week shall be defined as seven (7) consecutive calendar days. Overtime is compensable to the nearest half-hour, and must have prior authorization and approval of the Department Director. Each Department Director shall have the authority to designate certain job classifications for mandatory overtime in emergencies. In the event the Department Director determines that there is a staffing need during an emergency, the Department Director shall first make a reasonable effort to seek qualified volunteers to work overtime during the emergency. If the Department Director determines that there are an insufficient number of volunteers, or if time constraints prevent the soliciting of volunteers, the Department Director may order employees in the designated classifications to report to work in overtime status to address the emergency. 6.3 COMPENSATORY TIME POLICY With the Department Director's approval, compensatory time, in lieu of overtime pay, may be taken subject to the following rules: 6.3.1 Accrual Limit Employees may accrue up to 125 hours of compensatory time after which said employee must accept overtime pay in lieu of accruing additional compensatory time. 6.3.2 Overtime Rate Employees who work overtime may be paid for it at the rate of time and one-half or may accrue compensatory time at a rate of time and one-half subject to the limitations in Section 6.3.1. Employees who elect compensatory time must take the time off, preferably within the quarter during which it was earned, and shall not be paid for it. 6.4 PROBATIONARY PERIOD 6.4.1 Purpose of Probation After passing an examination and accepting appointment, each employee shall serve a period of probation beginning on the date of appointment. Such period shall be for the purpose of determining the employee's ability to perform satisfactorily the duties prescribed for the position. 6.4.2 Length of Probationary Period The probationary period on original and promotional appointment shall be for one (1) year. 6.4.3 Rejection During Probation During the probationary period an employee may be rejected at any time by the Appointing Authority without the right of appeal. 6.4.4 Notification of Rejection On determining that a probationary employee's work is not satisfactory, the Appointing Authority shall notify the Human Resources Director in writing of his/her intention to terminate the employee. After discussion with the Human Resources Director, the Appointing Authority shall notify employee in writing of his/her rejection. 6.4.5 Extension of Probationary Period Local I MOU 2018 - 2020 -)o The probationary period shall not be extended except in the case of extended illness or injury or compelling personal situation during which time the employee was unable to work. In such cases, the probationary period may be extended for the length of time the ill or injured employee was unable to work. 6.4.6 Regular Status Regular status shall commence with the day following the expiration date of the probationary period. 6.4.7 Promotion of Probationary Employee An employee serving a probationary period may be promoted to a position in a higher position classification provided he/she is certified from the appropriate Eligible List. The employee promoted in this manner shall serve a new probationary period for the position to which employee is promoted and the new probationary period and promotional appointment shall be effective the same date. 6.4.8 Unsuccessful Passage of Promotional Probation An employee who does not successfully pass his/her promotional probationary period shall be reinstated to the position in which the employee held regular status prior to his/her promotion. Provided, however, that if the cause for not passing the promotional probationary period was sufficient grounds for dismissal, the employee shall be subject to dismissal without reinstatement to the lower position. 6.4.9 Lateral Transfer Probation Voluntary transfers to another job classification, within the same salary range, shall require a six (6) month probationary period. in the event of unsuccessful passage of this period refer to Section 6.4.8. 6.5 TRANSFERS/ REASSIGNMENTS 6.5.1 Types of Transfers Transfers may be within the same department (intra -departmental) or between departments (inter -departmental). The requirements for each are as follows: a. Intra -departmental transfers. The Appointing Authority shall have the authority to transfer an employee from a position in one division of a department to a position in the same or similar classification with the same salary range, in the same division or to another division of the same department (at any time and for any duration). b. Inter -departmental transfers. An employee may transfer from a position in one (1) department to a position in the same or similar classification in another department, provided the consent of the two Appointing Authorities and the City Manager is obtained. c. Voluntary Transfers. An employee may make a written request for transfer to the Human Resources Director to a position in the same or similar classification with the same salary range. Such a transfer may be made on the recommendation of the affected Department Director(s) and the approval of the City Manager. Local I MOU 2018 - 2020 -) I 6.5.2 Minimum Qualifications & Probation Any persons transferred to a different position shall possess the minimum qualifications for the position. 6.5.3 Transfer Procedures The City Manager may authorize the transfer of an employee from one position to another of the same or comparable class of work and where the same general type of examination is given for entrance to such a position. Transfers from one department to another department having a different jurisdiction or different function shall be done only with the consent of the Department Directors, involved, unless such a transfer is ordered by the City Manager for purpose of economy or efficiency. Any person transferred to a different position shall possess the minimum qualifications for the position. Employees who have completed their initial probation may seek voluntary transfers to positions within the same job class, and/or lower level job classes as long as the employee meets the minimum qualifications for the position. Employees seeking transfer should submit a completed application to the Human Resources Department. As vacancies occur, transfer candidates may receive consideration along with those on the eligibility list. 6.6 PERSONNEL RULES & REGULATIONS Local 1 agrees to accept the City's Personnel Rules and Regulations. 6.6.1 Confidential Nature of Personnel Records All personnel records and files and examination materials are confidential. The Human Resources Director shall take all necessary steps to protect the confidentiality of those materials. Disclosure of such records shall be governed by the Public Records Act, Government Code Sections 6250, et. seq. Individual employees may review their official personnel file maintained by Human Resources Department and/or respective appointing authority. With the written consent of the employee, the authorized representative of the recognized employee organization may also review that personnel file. 6.6.2 Confidential Nature of Medical Records All medical records and files are the property of the City of San Rafael. These confidential records and files are to be maintained in a file separate from the employee's personnel file in the Human Resources Department. Disclosure of such records shall be governed by the Public Records Act, Government Code, Section 6250, et. seq. 6.6.3 Outside Employment Policy Local 1 members should refer to the City wide Policy on outside employment, located on the City's Intranet(https:Hintranet.cityofsanrafael.org) for policies and procedures related to outside employment. 6.6.4 Use of City Vehicle At the discretion of the Department Director, a Local 1 employee may be assigned a City vehicle for job related duties during regular working hours. Only in emergency conditions will an employee be allowed to take a City vehicle home and only with prior approval of the Department Director. Local 1 MOU 2018 - 2020 1 6.6.5 Safety Policy The City of San Rafael is committed to providing a safe and healthy place to work. The City shall furnish safety devices and safeguards, and shall adopt and use methods and processes adequate to ensure that the work place is safe and healthy. Employees are expected to obey safety rules and make proper use of safety gear and equipment. The City's safety policies and procedures shall comply with all applicable state laws related to a safe work environment. 6.7 MISCELLANEOUS 6.7.1 Hazardous Materials First responders at this level (awareness only) are those who are likely to witness or discover a hazardous substance release and who have been trained to initiate an emergency response operations level. "Awareness" individuals take no action beyond notifying the designated authorities of the release. The Deputy Fire Marshal is the Hazardous Materials Coordinator for the City of San Rafael. It is understood and agreed by both parties that employees represented by Local 1 do not have any responsibility to clean up, mitigate or otherwise dispose of hazardous materials. The Fire Department personnel and/or contract personnel have the direct responsibility of dealing with hazardous materials. 6.7.2 Gratuities/ Solicitation of Contributions Gratuities and solicitation of gratuities shall be governed by the City's Personnel Rules and Regulations. 6.7.3 Return of City Equipment Upon termination of employment, all tools, equipment, and other City property assigned to an employee shall be returned. 6.7.4 Political Activity The political activity of City employees shall comply with pertinent provisions of State and Federal Law. 6.7.5 Employment of Relatives Employment of relatives shall be governed by the City's Personnel Rules and Regulations. 6.7.6 Labor/ Management Meetings During the term of the Agreement, the City and the Bargaining Unit agree that consultation meetings may contribute to improved employer-employee relations. Issues relating to the usage of volunteers and temporary/part-time/seasonal employees, promotional opportunities and the implementation of safety programs will serve as a basis for initial agenda items to be discussed and acted upon. The committee shall be comprised of two (2) Local 1 representatives and three (3) representatives from City Management. The parties agree that committee members may change depending on the subject matter. Meetings may be requested by either party. The party requesting the meeting shall submit a proposed agenda and the receiving party shall acknowledge and confirm the date, time and location of the requested meeting. It is intended that the subject matter will not include issues subject to Article 7.4 Grievance Procedures. Local 1 MOU 2018 - 2020 ; 6.7.7 Contract Orientation Work Sessions The City and the Bargaining Unit agree that the individuals having responsibility for the enforcement of the Agreement, Local 1 Representatives and Department Directors/Supervisors, shall participate in an Annual Contract Orientation Work Session for the purpose of obtaining a better understanding of the provisions of the contract. These work sessions shall be held on City time and facilities. 6.7.8 Harassment Policy Employees shall adhere to the City's Policy against Harassment, located on the City's Intranet (https://intranet. cityofsanrafael. org ). 6.7.9 Work Place Conduct Employees, managers and supervisors will treat each other, regardless of position or profession, with dignity, courtesy, trust and respect. Disputes over the interpretation or application of this section will not be subject to the arbitration process of this agreement. 7 PROCEDURES 7.1 DEMOTION & SUSPENSION 7.1.1 Demotion The Appointing Authority may demote an employee when the following occurs: a. The employee FAILS to perform his/her required duties. b. An employee requests such a demotion. No employee shall be demoted to a classification for which he/she does not possess the minimum qualifications. When the action is initiated by the Appointing Authority, written notice of demotion shall be provided to an employee at least ten (10) working days before the effective date of the demotion, and a copy filed with the Human Resources Department. Withholding a salary step increase or withdrawing a merit step increase within or above the salary range of the employee's position shall not be deemed a demotion. Disciplinary demotion action shall be in accordance with Article 7.3, "Disciplinary Action." 7.1.2 Suspension The Appointing Authority may suspend an employee from a position at any time for a disciplinary purpose. The intended suspension action shall be reported immediately to the Human Resources Director, and shall be taken in accordance with Article 7.3, "Disciplinary Action". 7.2 TERMINATION OF EMPLOYMENT 7.2.1 Resignation An employee wishing to leave City service in good standing shall file with his/her immediate supervisor, at least fourteen (14) days before leaving the service, a written resignation stating the effective date and reason for leaving. A copy of the resignation shall be forwarded to the Appointing Authority and the Human Resources Department. 7.2.2 Termination - Layoff (Lack of work or funds) The Appointing Authority may terminate an employee because of changes in duties or organization, abolishment of position, shortage of work or funds, or completion of work for which employment was made. Local I MOU 2018 - 2020 'll The City will not layoff any employees in the bargaining unit between July 1, 2011 and December 31, 2011, unless the City is subject to significant revenue reduction (a reduction of one percent (1%) or more in General Fund revenue) due to state cuts or reduction in other revenue sources. 7.2.3 Termination - Disciplinary Action An employee may be terminated at any time for disciplinary action, as provided in Article 7.3, "Disciplinary Action". 7.2.4 Retirement Retirement from City services shall, except as otherwise provided, be subject to the terms and conditions of the City's contract as amended from time to time, with the Marin County Retirement System. 7.2.5 Rejection During Probation An employee may be terminated from their position during the probationary period of their initial appointment to the City's classified service without Right of Appeal. 7.3 DISCIPLINARY ACTION 7.3.1 Notification of Weingarten Rights The City will inform all members of their rights to Union representation (Weingarten Rights) prior to any meetings in which disciplinary action may be a result. 7.3.2 Right to Discipline & Discharge Upon completion of the designated probationary period an employee shall be designated as a non -probationary employee and the City shall have the right to discharge or discipline any such employee for dishonesty, insubordination, drunkenness, incompetence, negligence, failure to perform work as required or to observe the Department's safety rules and regulations or for engaging during the term of this Memorandum of Understanding, in strikes, individual or group slowdowns or work stoppages, or for violating or ordering the violation of the Memorandum of Understanding. The City shall use progressive disciplinary steps (i.e., reprimand, suspension, demotion, discharge) unless the violation is such as to justify termination. Disciplinary action shall mean discharge/dismissal, demotion, reduction in salary, and suspension resulting in loss of pay. In addition, the City may discipline or discharge an employee for the following: Fraud in securing appointment; negligence of duty; violation of safety rules; unacceptable attendance record including tardiness, overstaying lunch or break periods; possession, distribution or under the influence of alcoholic beverages, non-prescription or unauthorized narcotics or dangerous drugs during working hours; inability, unwillingness, refusal or failure to perform work as assigned, required or directed; unauthorized soliciting on City property or time; conviction of a felony or conviction of a misdemeanor involving moral turpitude; unacceptable behavior toward (mistreatment of discourteousness to) the general public or fellow employees or officers of the City; falsifying employment application materials, time reports, records, or payroll documents or other City records; misuse of City property; violation of any of the provisions of these working rules and regulations or departmental rules and regulations; disorderly conduct, participation in fights, horseplay or brawls; dishonesty or theft; establishment of a pattern of violations of any City policy or rules and regulations over an extended period of time in which a specific incident in and of itself would not warrant disciplinary action, however, the cumulative effect would warrant such action; failure to perform to an acceptable level of work quality and quantity; Local I MOU 2018 - 2020 �: insubordination; other acts inimical to the public service; inability or refusal to provide medical statement on cause of illness or disability. 7.3.3 Preliminary Notice A non -probationary employee shall receive a preliminary written notice from the employee's Supervisor of any proposed disciplinary action that involves the loss of pay. The notice must contain a specific statement of charges or grounds upon which the proposed disciplinary action is based and the date the disciplinary action will be effective. Any known written materials, reports or documents upon which the disciplinary action is based must be attached to the notice. Upon the receipt of the notice, the employee shall have five (5) days to appeal the matter in writing to Step 2 of the Grievance Procedure. If a written appeal is filed, no disciplinary action shall be imposed until the Department Director has conducted a hearing with the employee and employee's representative present and having heard the response of the employee. If no written appeal is filed within five (5) days, the employee shall be deemed to have waived his right to proceed with the steps for appeal in the Grievance Procedure. 7.3.4 Disciplinary Action and Appeal After hearing the response of the employee, the Department Director may order that the proposed disciplinary action or modification thereof be imposed. Such notification shall be issued in writing within 10 days of the meeting. If the employee elects to appeal the Department Director action, he/she may request a confidential settlement conference with the City Manager. Participation in the confidential settlement conference shall be voluntary. For pre -termination disciplinary action, the decision of the City Manager shall be final and binding. For disciplinary discharges only, if the matter is still unresolved after the confidential settlement conference, the employee shall notify the City within ten (10) days that the discharge is appealed to Step 4 (Arbitration) of the Grievance Procedure. The discharge appeal shall then proceed in accordance with the Grievance Procedure. 7.4 GRIEVANCE PROCEDURE 7.4.1 Definition 1. Grievance is a dispute, which involves the interpretation or application of any provision of this Memorandum of Understanding. All ordinances, resolutions, rules and regulations, which are not specifically covered by the provisions of this Memorandum shall not be subject to the Grievance Procedure. 2. Day shall mean any day that the City Office is open for business, excluding Saturdays, Sundays and the holidays recognized by the City. 3. Grievant may be an individual employee or a group of employees or Local 1 on the behalf of a group of employees or Local 1 on its own behalf on matters involving the City and Local 1 relationship. 4. Time limits begin with the day following the event causing the grievance or the day following receipt of a grievance decision. Local 1 MOU 2018 - 2020 26 7.4.2 Procedure Step 1 Within seven (7) working days of when the grievant knew or should have known of the act or omission causing the grievance the grievant shall present either in writing or verbally a clear and concise statement of the grievance to the immediate supervisor. Within five (5) working days thereafter the immediate supervisor shall investigate and respond to the allegations of the grievant. Step 2 If the grievant is not satisfied with the resolution at Step 1 the grievant must reduce the grievance to writing and present it to the Department Director within five working (5) days. The written grievance shall contain a statement of facts about the nature of the grievance, and shall identify the specific provisions of this Memorandum of Understanding alleged to be violated, applicable times, places and names of those involved, the remedy or relief requested, and shall be signed by the grievant. The Department Director shall confer with the grievant and within ten (10) working days respond to the allegations in writing. Step 3 If the grievant is not satisfied with the resolution at Step 2, the grievant shall, within five (5) working days, appeal the matter to the City Manager. The City Manager shall investigate the matter, conduct a hearing if the City Manager deems it appropriate and within ten (10) working days, thereafter, respond to the allegations in writing. Step 4 If the grievance remains unresolved after Step 3, the Bargaining Unit may give written notice to the City's Human Resources Department within ten (10) working days after receipt of the response in Step 3; notify the City that Local 1 wishes to appeal the grievance to final and binding arbitration. The parties shall attempt to agree upon an arbitrator. If no agreement is reached, they shall request a list from the State Conciliation Service of nine (9) names. The selection process will include a review of the arbitrator's availability for the hearing. Each party shall then alternately strike a name until only one (1) name remains, said person to be the arbitrator. The order of striking shall be determined by the flip of a coin. 7.4.3 Arbitration The arbitrator shall be empowered to conduct a hearing and to hear and receive evidence presented by the parties. The hearing should be held within 60 calendar days of the selection of the arbitrator. The hearing shall be informal and need not be conducted according to technical rules of evidence. Repetitious evidence may be excluded and oral evidence shall be taken only under oath. The arbitrator shall determine what evidence is relevant and pertinent, as well as any procedural matters, and he/she may call, recall and examine witnesses, as she/she deems proper. The burden of proof shall be upon Local 1 in grievance matters and upon the City in disciplinary discharge matters. After the conclusion of any hearing and the submission of any post hearing evidence or briefs agreed upon by the parties, the arbitrator shall render a written decision which shall be final and binding upon the City, Local 1 and any employee(s) involved in the grievance or disciplinary discharge. The arbitrator shall not be empowered to add to, subtract from, or in any way modify or alter any provision of this Memorandum of Understanding. The arbitrator shall only determine whether a Local I MOU 2018 - 2020 )7 grievance exists in the manner alleged by the grievant, and what the proper remedy, if any, shall be, or in the case of disciplinary discharge matters, whether the City allegations are accurate and the appropriateness of the disciplinary discharge. The fees and expenses of the arbitrator shall be shared equally by Local 1 and the City. All other expenses shall be borne by the party incurring them. The cost of the services for the court reporter shall be borne by the requesting party unless there is a mutual agreement to share the cost or unless the arbitrator so requests. Then the costs will be shared. 7.4.4 General Provisions 1. Employees who participate in the Grievance Procedure, by filing a grievance or acting, as a witness on the behalf of either party shall be free from discrimination by either Local 1 or the City. 2. A grievant has the right to be represented at each stage of the procedure, to cross examine witnesses, and have access to all information regarding the basis of the grievance upon which the City relies in making its determinations. 3. If the City management fails to respond within the specified time limits, the grievance shall, at the request of Local 1, be moved to the next step of the procedure. If Local 1 or a grievant fails to process or appeal a grievance within the specified time limits, the matter shall be deemed withdrawn with prejudice. The parties may, by mutual agreement, waive the steps in the procedure. 4. If a hearing is held during work hours of employee witnesses, such employees shall be released from duties without loss of pay or benefits to appear at the hearing. Witnesses requested by the parties shall be compelled to attend said hearings. 5. The Human Resources Department shall act as the central repository for all grievances. 6. Time limits contained herein may be extended by mutual agreement of the parties. Absence for bona fide reasons by a grievant, Local 1 Representative or any management official involved in responding to the grievance shall automatically extend the time limits by the same number of days of absence. 7.5 POSITION RECLASSIFICATION The process by which an individual position may be audited to review the appropriateness of its classification is provided in this Article. 7.5.1 Purpose This administrative procedure shall establish consistent guidelines for the creation and/or review of a position's job classification. 7.5.2 Policy The City of San Rafael seeks to maintain a classification system and process whereby all positions are accurately classified on the basis of current and ongoing job responsibilities officially assigned to said position(s). 7.5.3 Creation of New Position The Appointing Authority or their designee may during the budget process request the creation of a new job classification by: 1. Completion of prescribed personnel form(s) and a position description questionnaire form. 2. Completed forms shall be submitted to the City's Human Resources Department. Local I MOU 2018 - 2020 -)8 3. Human Resources Department staff shall within 60 calendar days of receipt of the forms complete a formal audit of the proposed job class and prepare a written report. 4. The written report shall be submitted to the City Manager and the City Council for final approval. 5. Creation of a new job classification shall be effective with the start of the new fiscal year. 7.5.4 Reclassification The Appointing Authority or their designee or an incumbent of a position or Local 1 on behalf of an employee may request, in writing, a classification review. This classification review may be requested if the position has not been reviewed within the previous twelve (12) months and either permanent and substantial changes have been made in the duties and responsibilities assigned to the position or there is evidence that the majority (50% or more) of the work being performed is not appropriate for the position's current classification. 1. All requests for reclassification must be submitted to the Human Resources Department on prescribed personnel form(s) by the appointing authority. Reclassification requests must be accompanied by a current job description approved by the position's immediate supervisor and appointing authority. 2. Employee initiated reclassification requests must first be directed to the employee's Appointing Authority. The appointing authority shall forward the employee's request to the Human Resources Director within ten (10) days of receipt. 3. The Human Resources Director shall ensure the review (audit) of the employee's position is completed within sixty (60) calendar days of receipt of the request in the Human Resources Department. 4. Based upon the analysis and evaluation of a position, the Human Resources Department reviewer may recommend that the position be sustained in its current class or be reclassified (up or down) to the proper classification based upon the assigned work. The City Manager or their designee shall review all reclassification recommendations made by the Human Resources Department. 5. Within ten (10) days of receipt of the written audit decision the affected employee(s) may, in writing, submit a request for review of this decision to the City Manager. This request for review must show substantial error and/or omission on the part of the auditor. The City Manager may render a decision on the appeal on the basis of the written material or may interview the involved parties to discuss the specific error or omission prior to rendering a decision. 6. The City Manager shall have final decision-making authority on all reclassifications. 7. Reclassifications shall be effective the first of the month following final approval of the action. Any changes of pay as a result of the reallocation shall be in accordance with the City's Personnel Rules and Regulations in effect at the time. 7.6 FURLOUGH PROGRAM Both the City of San Rafael and Local 1 recognize the unpredictable shifts in funding that affect City finances. Through this recognition and in a cooperative spirit the City of San Rafael and Local 1 have worked expeditiously on the development of a Furlough Program. This Agreement does not mean the City will necessarily implement furloughs; but in the event it is necessary to implement due to continued economic problems in the City of San Rafael, the City shall meet and consult with the Bargaining Unit at least 60 days prior to implementation of the Furlough Program. The procedures for this Furlough Program shall provide for both Voluntary Time Off (herein described as VTO) and Mandatory Time Off (herein described as MTO). Local I MOU 2018 - 2020 -)y 7.6.1 Voluntary Time Off (VTO) The needs of the City and the respective departments (as determined by the Department Director and City Manager) will need to be considered in the actual granting of VTO. Any VTO time granted and the resulting savings will have a corresponding impact on the time needed through MTO. 1. An employee's VTO time would count in determining how many hours of MTO an employee needed to take during the fiscal year. 2. An employee selecting at least a 5% reduction of hours through the VTO would receive "float days" as described in Section 7.6.2, item 4.b. 3. Employees who take VTO at a time other than when MTO is taken by other employees will have to take vacation leave, compensatory time off or leave without pay if the MTO results in the closure of the department. 4. Employees will be allowed to exceed a 5% reduction of hours through the VTO with review of the Department Director and approval of the City Manager and such approval shall be revocable should the City determine that the impact of the absence can not be absorbed by the Department. Prior to revoking approval, the City will contact the employee and review pertinent information which would impact the employee's ability to return to work. Should the City need to remove additional VTO, such removal would be considered a non -disciplinary action and would not be subject to any appeal/grievance procedure. 7.6.2 Mandatory Time Off (MTO) MTO will be taken by the employee during the MTO period when feasible in their respective department (as determined by the Department Director and City Manager) and after consultation with Local 1. 1. Employees may not take paid vacation time in lieu of designated MTO time. 2. MTO time shall be considered time in pay status for the accrual of leave and eligibility for holidays. MTO time will not impact health, dental and life insurance benefits. At this time MTO time will not impact Marin County retirement calculations of average compensation or service credit as the City and employee will continue to fund the full amounts. If the Marin County Retirement Association changes its policy on this, the City will, effective the first of the month following notice from the Marin County Retirement Association, make the necessary change in the program's administration to correspond with the change in the policy. 3. MTO time shall apply toward time in service for step increases and completion of probation. 4. Other Terms and Conditions: a. The MTO program shall be limited to a maximum five percent (5%) reduction in work hours/pay for the fiscal year. When the maximum MTO reduction (5%) is implemented, the involved employee shall be credited with three (3) days of float time. b. Float time accrued through the MTO Program must be taken in the next fiscal year following the furlough, with supervisory approval or the leave will be forfeited. The float days have no cash value upon termination of employment. If an employee is laid off before having the opportunity to take unused furlough induced float time, said employee would be eligible to take the unused float time during the thirty -day layoff notice period. Locai I MOU 2018 - 2020 30 c. Should the City of San Rafael experience a financial windfall during the fiscal year that furloughs are implemented, the City and Local 1 agree to re -open negotiations on this Furlough Plan. 7.7 REDUCTION IN FORCE 7.7.1 Authority The Appointing Authority may lay off, without prejudice, any regular employee because of lack of work or funds, or organizational alterations, or for reasons of economy or organizational efficiency. 7.7.2 Notice Regular employees designated for layoff or demotion shall be notified in writing at least thirty (30) calendar days prior to the anticipated date of termination or demotion. The employee organization shall also be notified. 7.7.3 Order of Layoff Layoffs and/or reductions in force shall be made by classification. A classification is defined as a position or number of positions having the same title, job description and salary. Extra hire employees shall be laid off before permanent employees in the affected classification. In effecting the preceding order, a part-time permanent employee with more seniority can displace a full time permanent employee. 7.7.4 Seniority If two or more employees within a classification have achieved permanent status, such employees will be laid off or reduced on the following basis: a. Seniority within the affected classification will be determinative. Such seniority shall include time served in higher classification (s). The computation of seniority for part-time employees will be credited on a pro rata basis to full time service. Time spent on a City Manager approved leave of absence without pay does not count toward seniority. b. If the seniority of two or more employees in the affected classification or higher classifications) is equal, departmental seniority shall be determinative. c. If all of the above factors are equal, the date regular status in City service is achieved shall be determinative. d. If all of the above are equal, date of certification for appointment shall be determinative. 7.7.5 Bumping Rights An employee designated to be laid off may bump into a class at the same salary level, or into the next lower classification in which such employee has previously held regular status. An employee who is bumped shall be laid off in the same manner as an employee whose position is abolished. 7.7.6 Transfer Rights The Human Resources Director will make every effort to transfer an employee who is to be affected by a reduction in force to another vacant position for which such employee may qualify. The length of eligibility for such transfer will be the period of notification as provided in Section 7.7.3, but no longer than the effective date of such layoff or reduction. Local I MOU 2018 - 2020 31 7.7.7 Layoff Procedure Notification Once the decision has been made to reduce the workforce per this MOU, the City will meet with the Bargaining Unit to review and receive feedback on the procedure to be used to inform and process the lay-offs. The information gained in this meeting from the Bargaining Unit by the City will be advisory and non-binding. 7.8 RE-EMPLOYMENT 7.8.1 General Guidelines Individuals who have been laid off or demoted shall be offered re -appointment to the same or similar classification in which they held status in the order of seniority in the classification. Individuals demoted in lieu of reduction in force shall be offered restoration to the highest class in which they held status and in which there is a vacancy prior to the appointment of individuals who have been laid off. 7.8.2 Right to Re -Employment Each person who has been laid off or demoted in lieu of a layoff from a position the person held, shall, in writing, be offered re -appointment in the same classification should a vacancy occur in the classification within two years after the layoff or demotion. Prior to being re-employed, the employee must pass a physical exam administered by a City appointed physician and must pass the background check administered by the City. 7.8.3 Time Limits Should the person not accept the re -appointment within seven (7) calendar days after the date of the offer, or should the person decline or be unable to begin work within two weeks after the date of acceptance of the offer, the person shall be considered unavailable for employment, shall forfeit the right to re-employment and be removed from the re-employment list. 7.8.4 Availability Whenever a person is unavailable for re-employment, the next senior person who is eligible on the re-employment list shall be offered re-employment. 7.8.5 Probationary Status Employees re -appointed under the provisions above will not be required to complete a new probationary period if they had previously held permanent status in the classification. Employees who had not completed their probationary period shall serve the remainder of the probationary period upon re -appointment. 7.8.6 Restoration of Benefits Employees restored to previously held positions shall be deemed to have returned from a leave of absence for the purpose of all rights and benefits legally permissible. Time not on the payroll will not count as time worked for the purposes of seniority accrual. Local I MOU 2018 - 2020 32 Public Employees Union Local 1: Lisa David, Business Agent Local 1 a Munoz, Payroll A M)nistrator !sentative. Local 1L,/ Rhonda Castellucci, HR Representative II, Local 1 A ita Rose, A minis rative Assistant to the Police Chief, Local 1 Date Local I MOU 2018 - 2020 CITY OF SAN RAFAEL: , Human Resources Director Lauro Mopson, Deputy City Attorney II 7- C;2& Date