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SR-12A (7) R..e:lJ* qZ./l ~ ~~bg'J1 CC~ ItA PE mtastfrpt.1997-98MOU.bancroft pms Council Meeting October 28, 1997 OCT 2 8 1997 Santa MOnica, California TO Mayor and City CouncIl FROM City Staff SUBJECT Resolution Authorizing the Crty Manager to Execute a Memorandum of Understanding with the Management Team Associates INTRODUCTION This report requests that Council adopt the attached Resolution authorrzlng the City Manager to execute a Memorandum of Understanding (MOU) with the Management Team Associates. BACKGROUND The current Memorandum of Understanding (MOU) with the Administrative Team Associates expired on June 30, 1 997 As per the terms and condItIOns of the expired MOU, negotiations With the Management Team Associates to replace the expired MOU commenced and resulted In the attached MOU. This new agreement has been ratified by the membership of the Management Team Associates This agreement provides for a cost of living Increase for FY97-98, replaces the city-paid deferred compensation plan contrrbutlon With an equal one-time adjustment to base pay, replaces cashable management leave days With an equal amount of management incentIve pay and makes some other minor non-economic changes ,Z,A OCT 2 8 1997 BUDGET/FINANCIAL IMPACT Funds are already Included In the budget for FY97-98 to cover any costs associated with this agreement RECOMMENDA TION It IS recommended that Council adopt the attached Resolution authorizing the City Manager to execute the attached Memorandum of Understanding with the Management Team Associates Prepared By: Karen Bancroft '-rrtas-f":n . 997 ~S'~iJ~ ~ RESOLUTION NO 9211 (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE MANAGEMENT TEAM ASSOCIATES WHEREAS, the City administration and representatives of the Management Team Associates have met and conferred under the terms of Ordinance No. 801 (CCS) and have reached agreement on wages, hours and other terms and conditions of employment; and WHEREAS, Section 2.06 of Ordinance No. 801 (CCS) of the CIty of Santa MonIca requires preparation of a written Memorandum of Understanding between the adminIstration and employees If an agreement can be reached, and WHEREAS, Section 2 06 of Ordinance No 801 (CCS) further provides that any such Memorandum of Understanding shall not be binding unless and until presented to the governing body for determination; and WHEREAS, the purpose of the Memorandum of Understanding IS to promote and provide harmonious relatIons, cooperation, and understanding between the City and the Management Team Associates, .. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOllOWS Section 1. The CIty Council of the City of Santa Monrca does hereby approve and authorize the CIty Manager to execute the Memorandum of Understanding executed by the Management Team Associates, a copy of which IS attached hereto Section 2. The City Clerk shall certify to the adoption of this ResolutIon, and thenceforth and thereafter the same shall be In full force and effect. APPROVED AS TO FORM --- ^ , , ':hAj/k,/~-,-f~ 0~~ MARSHA JONES MOUTRIE CIty Attorney Imta1997 1'8Solutlorl Adopted and approved thIS 28th of October, 1997 t ~~. prela O.Connor. Mayor L Mana M Stewart. Crty Clerk of the CIty of Santa Momca. do hereby certIfy that the foregomg ResolutIon 9211 (CCS) ,"vas duly adopted at a meetmg of the CIty CounCIl held on the 28th of October, 1997 by the follo,^,lng vote Ayes Councllmembers Femstem. Genser. Holbrook, O'Connor ~oes Councllmembers None Abstam Councllmembers None Absent Councllmembers Ebner. Greenberg. Rosenstem ATTEST '-. ~ ._~ _ ~LL~n ^.\- Mana M . Stewart. CItY-Clerk - Ccnfrqcf # h &;;27 cc5. MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SANTA MONICA, CALIFORNIA AND MANAGEMENT TEAM ASSOCIATES TABLE OF CONTENTS ARTICLE I: GENERAL PROVISIONS 1.01 Parties to Memorandum .. ........ 3 1.02 Purpose.......... .. ...... 3 1.03 Term of Agreement ........... 4 1.04 City Council Approval .......... 4 1.05 Recognlzed Employee Association Name 4 1.06 Scope of Representatlon......... 4 1.07 Full Understanding, Modlflcatlon and Walver 5 1.08 Management Rlghts Reserved...... 5 1.09 Peaceful Performance of Clty Servlce 6 1.10 Valldlty of Memorandum of Understandlng.. 7 1.11 Captions for Convenlence........ 7 1.12 Equal Employment and Non-Dlscrlmination. 7 1.13 Deflnltlons.... . . . . . . . . . . . . . . 8 1.14 Overpayment Remedy.............. ... 10 1.15 Payments at Termlnation......... 10 ARTICLE II: COMPENSATION 2.01 2.02 2.03 2.04 2.05 2.06 2.07 Effective Date of Pay Increase. . Salarles..... .. Overtlme.... ... Promotlonal Pay Rate Reclassiflcations Y - Ra t 1 ng . . . . . . . Pay for Serving in a Higher Job Classiflcation 12 12 13 13 13 14 14 ARTICLE III: SUPPLEMENTAL BENEFITS 3.01 Health Insurance Programs........ ............ 16 3.02 Retlrement........ . . . . . . . . . . . . . . . . . . . . . .. 17 3.03 TUltlon Relmbursement ....................... 18 3.04 Supplemental Retirement Plans................. 19 3.05 Mileage Relmbursement and Energy Conservatlon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19 3.06 Mental Health Insurance. ...... .............. 20 3.07 Term Llfe Insurance..... . ............. 20 3.08 Long Term Disability Insurance........ 20 3.09 Recognitlon of Exceptlonal Performance. 20 3.10 Performance Based Increases ........ 22 3.11 Slck Leave Buy Back. . . . . . . . . . . . 22 1 ARTICLE IV: LEAVES 4.01 Paid Holldays. . ........ ............... 25 4.02 Vacatlon Leave...... ." ......... ...... 26 4 .03 Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 4.04 Leave of Absence Without Pay............ ...... 28 4.05 Mllitary Leave................................ 28 4.06 Workers' Compensatlon Leave................... 29 4 .07 Jury Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29 4 08 Bereavement Leave .. ...... ............... 29 4 09 Management Incentlve Pay.. ...... ............ 30 4 10 Management Leave...... .......... ............ 30 4.11 Parental Leave.................. 31 4.12 Family and Medical Leave........ 31 4.13 work/Family Issues..... ...... 31 ARTICLE V; WORKING CONDITIONS 5 01 Safety and Loss Prevention...... 5.02 Effect of Job Performance on Salary 5 03 Employee Parking.. ....... 32 32 33 ARTICLE VI EMPLOYER/~MPLOYEE RELATIONS 6.01 Payroll Deductions. . . . . . . . . . . . . . . . . . . . . . .. 34 6.02 Reasonable Not~ce. . . . . . . . . . . . . . . . . . . . . . .. 34 6.03 Grievance and Complaint Polley... 34 EXHIBIT A 38 2 ARTICLE I GENERAL PROVISIONS 1.01 Partles to Memorandum This Memorandum of understandlng has been prepared pursuant to the terms of Ordinance No. 801 (CCS) of the City of Santa Mon~ca, WhlCh Ordlnance lS hereby lncorporated by reference as If fully set forth herein, and has been executed by the C~ty Manager on behalf of management offlcials of the Clty and by the MANAGEMENT TEAM ASSOCIATES (MTA) , and on behalf of employees occupy~ng the llne-item full-tlme employment posltlon clasSlflcatlons set forth ln Exhibit A WhlCh is attached hereto and made a part hereof. In the event new job classifications are created whlch are proposed to be added to the MTA unlt I the Munlcipal Employee Relatlons Officer will notlfy MTA prlor to the Personnel Board and Clty Council considerations of the new classifications Any classlflcatlons proposed to be added to the unlt shall be mutually agreed upon ln wrltlng and will become effective upon execution by the Pres~dent of MTA and the Mun~clpal Employee Relatlons offlcer. As of January 1 I 1992, the followlng posltlon classificatlons will no longer be yepresented by MTA. Each lncumbent In any of these classlfications who elected, as of December 31, 1991, to be I1grand parentedll in MTA wlll contlnue to recelve MTA beneflts, as set forth ln this Agreement and any subsequent Agreements, as long as he/she contlnues to hold the posltlon classiflcatlon ln question. Event Facllltles Operations Supervlsor Prlnclpal Communlty SerVlces Supervisor 1. 02 Purpose The partles agree that the purpose of thlS MOU lS to promote and provlde harmonlOUS relations, cooperatlon and understandlng between the City and the employees covered herelni to provlde an orderly and equltable means of resolvlng dlfferences which may arlse under this memorandum I and to set forth the full agreements of the partles reached as a result of ffieetlng and conferring in good faith regarding matters wlthin the scope of representatlon for employees represented by MTA 3 1. 03 1. 04 1. 05 1. 06 Term of Agreement ThlS Agreement shall be effectlve as of the 1st day of July 1997 and shall remaln ln full force and effect untll the 30th day of June 1998. It shall be automatlcally renewed from year to year thereafter, unless either party shall notlfy the other in wrltlng not later than March 1 of each year that lt deslres to terminate or modlfy thlS Agreement, and speclflcally lndlcates requested modiflcatlons In the event that such notlce 15 glven, negotiations shall beglTI no later than April 1 wlth a signed contract deslred July 1. Clty Councll Approval ThlS MOD lS of no force or effect whatsoever unless or untl1 ratified and approved by resolution duly adopted by the City Council of the Clty of Santa Monlca. Recognlzed Employee Assoclatlon Name The MTA lS hereby acknowledged as the Recognized Employee Organlzatlon representing only the permanent 11ne-item e~ployment positlon classlflcatlons set forth in Exhibit A {whlch is attached hereto and made a part hereof} pursuant to Sectlon 3.04 (c) of Ordlnance No. 80l (CeS). It lS the mutual understandlng of the partles hereto that acknowledgment of the MTA as the Recognized Employee Organlzatlon: A. Does not preclude employees posltlon classlflcatlons themselves lndlvldually In relations wlth the City. such employment representlng employment In from their B. Does not preclude or restrlct the rlght of management offlcials to meet and consult with employees in such employment positlon classlflcatlons concernlng thelr employment relations wlth the City. Scope of Representation The scope of representation of the Recognized Employee Organlzatlon shall lnclude all matters relating to employment conditlons and employer-employee relatlons includlng, but not Ilffilted to, wages, hours, and other terms and condltlons of employment, except, however, that the scope of representatlon shall not lnclude 4 1. 07 1. 08 conslderation of the me~its, necesslty, or organizatlon of any serVlce or activity provlded by law or executlve order and that the scope of representatlon shall be exerclsed or performed in compliance with the provlslons of Ordlnance No 801 (CCS). Full Understandlng, Modlflcatlon and Waiver The parties agree that each has had full and unrestricted right and opportunlty to make, advance, and dlSCUSS all matters p~operly withln the scope of representatlon as outllned 1n Sectlon 2.05 of Ordlnance No. 801 (CCS) This MOD constitutes the full and complete agreement of the parties and there are no others, oral or written, except as speclfled in thlS Agreement. The partles are not bound by any past practlces or understandlngs of either party unless such past practlces or understandlngs are speclfically stated ln this MOD except that provlslons or condltlons not speclflcally changed ln thlS or preVlOUS MOU's shall be as prescrlbed by the C1Vll SerVlce provlslons of the Santa Monica City Charter and the Santa Mcnica Munlclpal Code. Each party, for the term of this MOD, speclflcally waives the right to demand or petition for changes herein, whether or not the subJects were known to the partles at the tlme of executlon hereof as proper subjects wlthln the scope of representation as outllned ln Sectlon 2 05 of Ordlnance No 801 (CCS). Management Rlghts Reserved The Clty retalns all rlghts not speclflcally delegated by thlS Agreement, lncluding, but not Ilmited to, the excluslve right to. A hire, promote, transfer, asslgn, suspend, schedule, Dlrect, supervlse, dlsclpllne, dlscharge, and retaln employees. B Relieve employees from dutles because of lack of work or funds I or under condltlons where contlnued work would be lnefflcient or nonproductlve. C. Determlne serVlces to be rendered, operatlons to be performed, utilizatlon of technology, and overall budgetary matters. D Determlne the approprlate Job classlflcations and personnel by WhlCh government operatlons are to be conducted. 5 1. 09 E. Determ1ne the overall mlssion of the unlt of government F. Ma1nta1n and 1mprove the eff1c1ency effectlveness of government operat1ons. and G Take any necessary actlons to carry out the mlSSlon of an agency 1n sltuatlons of emergency. H. Take whatever other act10ns may be necessary to carry out the w1shes of the public not otherw1se spec1f1ed above or by collective agreement. Peaceful Performance of City Service It 18 mutually understood and agreed that partic1pat1on by any employee in a strike or a concerted work stoppage term1nates the employment relat10nship in the absence of specific written wa1ver of such terminatlon by an authorized management off1C1al. A It lS further understood and agreed that none of the partles hereto wlll participate in, encourage, ass1st or condone any str1ke, concerted work stoppage, cessatlon of work, slow-down, sit-down, stay-away, picketlng or any other form of 1nterference wlth or llmltatlon of the peaceful performance of City serVlces. B. In the event that there occurs any strlke, concerted work stoppage, cessation of work, slow-down, slt-doWTI, stay-away, plcketl~g or any other form of lnterference with or llmltatlon of the peaceful performance of Clty serVlces, the City, 1n addltlon to any other lawful remed1es or d1sclpllnary act1ons, may by action of the C1ty Manager cancel any or all payroll deductions, proh1blt the use of bullet1n boards, proh1blt the use of C1ty faclllties, and prohlblt access to former work or duty statlons C Nelther the employee organizat1on, nor any person acting ln concert with them, will cause, sanctlon, or take part ln any strlke, walk-out, sit-down, slow-down, stoppage of work, picketlng, retard1ng of work, abnormal absenteelsm, wlthholdlng of serVlces, or any other lnterference w1th the normal work routine. The provisions of this Article shall apply for the same term as this Agreement, or durlng any renewal or extension thereof. Vlolation of any prOV1Slon of thlS MOTI by the Recognized Employee 6 1.10 1.11 1.12 Organlzation shall be cause for the Clty, at ltS sole optlon, to termlnate this Agreement in addlt10n to whatever other remedies may be to the Clty at law or in equlty D The Clty agrees that there shall be no general lockout of bargaining unlt members Val1dlty of Memorandum of Understanding If any provis1on of this MOU is determ1ned to be 1nvalld or illegal by a court of competent Jurlsdlctlon, then such provlslon shall be severed from thlS MOU, but the remalnder hereof shall remaln In full force and effect. The part1es hereto shall lmmedlately commence to negotlate for the purpose of replaclng any such invalld or illegal provision. Should any change be made 1n any Federal or State law, or in any rules and regulatlons lmplementing such leglslation, or in any City Charter prov1s1on or Santa Monlca Municipal Code prOV1Slon whlch would be applicable and contrary to any provlsion hereln contalned, then such provision of this MOU shall be automatically terminated, but the remalnder of thlS MOU shall remaln In full force and effect Such legislatlon and/or rules and regulatlons shall supersede thlS MOD and appllcable clauses shall be substltuted for those ruled 1nvalld or lllegal. The partles hereto shall 1mmed1ately commence to negotlate for the purpose of replaclng any such lnval1d or 11legal provlSlon Captlons for Convenlence The captlons here1n are for convenience only and are not a part of thlS MOD and do not 1n any way limit, deflne, or ampllfy the terms and prOV1Slons hereof. Equal Employment and Non-Discrlmlnatlon It is agreed by both partles to this MOU that management offlcials play a spec1al role in achlevlng equal opportun1ty ln selecting, tralnlng, promotlng, and dlsclplining employees. The partles hereto will work 1n partnershlp wlth the Personnel Department to ensure full compllance wlth the letter and spirit of all appllcable local, State, and Federal laws, rules and regulations governing equal opportunlty and with the Afflrmative Actlon Program and Sexual Harassment Policy of the Clty of 7 1.13 Santa Monlca Wh1Ch are 1ncorporated by reference hereln Both part1es acknowledge that progress In meetlng aff1rmative actlon goals and the walntenance of a harassment-free work enVlronment are appropr1ate lnd1cators of performance of an employee subject to thlS MOU. Both parties also agree to ablde by the requirements of the Amerlcans with D1sablllties Act (ADA). Deflnltlons The follow1ng defin1tlons are to be appl1ed in the lnterpretatlon of thlS MOU: A. "Salary Range" shall mean the normal f1ve steps (A through E) hourly or monthly pay scale (and the bi-weekly equ1valent) asslgned to each employment pos1t10n classificatlon within the C1ty work force, unless changes to the payroll system make a range of ten (10) steps possible, as described 1n Sectlon 3 10 of this MOU. B "Salary Range Steps A through E" for each employment pos1tlon class1flcation with1n the City work force shall mean and be establlshed to bear the followlng percentage relationship to Salary Range Step E computed to the nearest dollar. Normal progresslon through the range toward E step shall be lD annual step 1ncrements cont1ngent on sat1sfactory serV1ce. Step A - 81% of Step E Step B - 85% of Step E Step C - 90% of Step E Step D - 95% of Step E Step E - 100% C. "Nearest Dollar" shall mean the next lower dollar when the computed amount lS flfty (50) cents or less and the next higher dollar when the computed amount 1S fifty-one (51) cents or more. D. "Llne-item pos1tion" shall mean a poslt1on WhlCh is (1) speclfically 1temized in the personnel schedule of the annual budget of the C1ty of Santa Monlca, and 8 (2) eliglble to accumulate vacatlon, slck leave and other time off In proport1on to the percentage of the full-time forty (40) hour week. Other fr1nge benef1ts shall be provlded to part-time employees covered herein as 1f they were employed on a full-t1me basis. E 11 Penranent Employees II shall mean: (1 ) A person who 1S llne-ltem posltion, legally an incumbent of full or part-t1me; or a (2) A former 1ncumbent of a line-item position on author1zed leave of absence from a regularly budgeted posltlon, which positlon 1S held pendlng the employee's return. The term "permanent employee" shall not be construed to 1mply a guarantee of continued employment. However, no permanent employee shall be denled the right to those due process protectlons approprlate to h1s/her status under the Municipal Code and City Charter and applicable State law. F. "Date of Entrance Annlversary" shall mean the date wh1ch recurs annually after the date of entry into a pos1t1on 1n the classifled service of the City of Santa Monica, elther by original employment, re-employment or promotlon. The date of entrance for employees with broken serVlce shall be considered as the date on wh1ch the last unbroken service was effectlve. G II Satlsfactory SerV1ce II shall mean the at talnment of an overall rat1ng not less than II Competent II on the performance report assoclated W1 th the employee 1 s most recent date of entrance ann1versary. H IIFull-T1me Work Weekll shall mean forty (40) hours. (1) Incumbents of line-ltem pos1t1ons employed in a work week less than that defined as the full-t1me work week shall be compensated 1n that proportlon of the compensatlon for full-time employment as the number of hours budgeted for that position bears to the full-time work week; incumbents of line-item posit1ons employed 1n a work week greater than that deflned as the full-tlme work week shall be compensated for hours in excess of the full-time work week on the basis of and 1n accordance w1th the prov1s10ns of the Article 9 1 14 1.15 hereof relatlng to overtime. Compensatlon shall lnclude base salary, deferred compensatlon and any other bonuses or sk1ll pays provlded by th1S Agreement. (2) Incumbents of llne-1tem pos1tions regularly working less than the full-t1me work week shall accrue vacation, sick leave and other tlme off ln the same ratlo as the average number of hours they work per week 1S to the full-tlme work week for the posltlon occupled. Other frlnge benef1ts shall be provided to part-time employees covered herein as lf they were employed on a full-time basls. I "payll shall mean compensat1on for regular hours worked, sick leave, vacatlon, bereavement leave, holidays, management leave days, compensatory time off and/or jury duty J. urn Pay Status" shall mean earnlng pay. K. "Completed Calendar Month of Service" shall mean a calendar month 1n whlch an employee, has been ln pay status for eleven (11) or more working days L. "Base Rate II shall mean the hourly rate for the employee I s salary step excludlng any speclal asslgnment, bonus pays or other compensatlon Overpayment Remedy Permanent employees covered here1n shall reimburse the Clty for any overpayment of wages or benefits. Sald reimbursement shall not be required untll the City notifies the affected employee 1n wrlting Re1mbursement may be accomplished by a lump-sum deductlon made on the next subsequent employee payroll warrant following overpayment not1f1catlon, or by other reasonable repayment method mutually acceptable to the employee and the Clty, except that the lump-sum deductlon shall be requ1red lf the next subsequent employee payroll warrant 1S the flnal or termlnatlon warrant lssued to the affected employee. Payments at Terminatlon When permanent employees covered hereln leave the serVlce of the City of Santa Monica, they shall only be entitled to lump-sum payoff of vacat10n leave and any unused cashable floating hol1day. No claim shall be made aga1nst 10 the Clty for the use or payment of unused slck leave or unused leave granted 1n lleu of cash payment for the annual performance bonus, nor shall the effective date of termlnat10n be extended by the use of slck leave, vacat10n or other leave days. 11 ARTICLE II. COMPENSATION 2.01 Effect1ve Date of Pay Increase Notw1thstand1ng any other prOV1Slon contalned here1n, changes to the salary range and salary related beneflt changes provided here1n shall become effectl ve on the f1rst day of the payroll perlod closest to the effect1ve date stated here1n If the effectlve date stated hereln falls on the Sunday ln the m1ddle of a pay period, the effective date shall be the flrst day of the following payroll perlod 2.02 Salarles Salarles of C1ty employees ln Ilne-1tem posltions shall be on a monthly rate, pald on a bl-weekly equlvalent basls. In lieu of the bi-weekly equ1valent to a monthly rate, the C1ty Manager may I1X the compensatlon of any positlon at an hourly rate. In positions for wh1ch the work week lS forty (40) hours, the hourly rate shall be determined by dlvld1ng the bi-weekly rate by eighty (80)_ A As of July 1, 1997, C1ty contrlbutlons lnto a 457 plan on behalf of employees covered herein shall be d1scont1nued Instead, effect1ve July 1, 1997, each step of the salary ranges establ1shed for posltlons covered hereln shall be lncreased by an amount equal to the City's current contrlbution into a 457 plan on behalf of each MTA employee _ Th1S would be a one-time adjustment to 1nclude as part of base salary what was prevlously pald as a Cl ty-pald contr1butlon into a 457 plan. The E-step salar1es of the resulting salary ranges shall then be adJusted by three percent (3%) B. A given classif1cat1on covered by thlS MOU w111 be ellglble to recelve an equlty adjustment prov1d1ng that the compensation study conducted by the Clty of Santa Monica substant1ates the need for an equ1ty adjustment to br1ng the salary range of that classlflcat10n 1n Ilne wlth the mean salary pald to the same classlflcat10n found 1n comparable c1tles. The Clty wlll be willlng to receive and evaluate any salary compar1son data that MTA m1ght want to make avallable regarding an equity adjustment for a glven classificat1on. Should a compensat1on study lndlcate that a glven Job classlfication is currently being 12 2.03 2 04 2.05 pa1d above the mean salary pald to che same class1f1cat1on found 1n comparable c1t1es, the salary range of that class1fication w111 rema1n unchanged. Internal equity factors w1ll also be taken 1nto consideration, as deemed approprlate by the City, when determlnlng whether or not an equ1ty adJustment for a glven classification lS warranted. Equity adjustments descrlbed hereln w111 be considered on an annual basls, elther as a part of the annual budget process If no MOD negot1atlons should be occurr1ng during the year or as a part of the MOD negotlat1ons process should the MOD be up for negotlat1on. Overtl.me Employees coveTed herel.n are exempt employees as def1ned by the Fal.r Labor Standards Act (FLSA) as FLSA 1S applied to publl.c agency employees. As a result, employees coveTed here1n wl.ll not have to account fOT thelr work time on an hourly basis and will only need to account for each full day of absence whl.ch occurs on a regularly scheduled work day. Employees covered herel.n, as exempt employees, w111 noc be el1g1ble to accrue compensatory t1me or be pal.d overtlme. Promotlonal Pay Rate If a permanent employee covered herein is promoted and hls/her salary 1S equal to or greater than the entrance salary of the promot1onal class1f1cat1on, the employee's salary shall be increased to the next higher salary rate which prov1des a mln1mum f1ve (5) percent salary increase, provlded, however, that ln no event shall the salary rate exceed the maX1mum salary rate for the new classiflcatlon In the event the promotion is to a supervl.sory position, the employee promoted shall receive not less than the next higher salary rate WhlCh provides a mlnlmum flve (5) percent 1ncrease above the hlghest salary rate being pa1d to any subord1nate, provlded, however, that ln no event shall the salary rate exceed the maXlmum salary rate for the new classificatlon Reclass1f1cat1ons A reclasslfication of a permanent employee covered hereln to a higher level Job classlflcatlon wl.ll be consldered a promotlon and the employeefs salary shall be increased to the hlgher salary rate in the new classif1cat1on which prov1des a m1n1mum of f1ve (5) percent salary lncrease, 13 2.06 2.07 prov1ded, however, that In no event shall the salary rate exceed the maximum salary rate for the new class1f1cat1on. A reclass1flcation of a permanent employee covered hereln to a lower level Job clasS1f1catlon wlll not be considered a demot1on, and the salary of the affected employee shall rema1n at the same level until the salary range of the new classificat10n equals or exceeds the Y-rated salary. The employee shall be represented by the barga1nlng unit WhlCh represents the job class1f1catlon to WhlCh the affected employee has been reclasslf1ed and the employee shall be covered by the terms and conditions of the Memorandum of Understand1ng between the City of Santa Mon1ca and that bargaining un1t Y-Rating When a personnel actlon, e g., demotion due to layoff or reclasslfication, results in the lowering of the salary range of a permanent employee covered herein, the incumbent employee I s salary may be Y-rated. "Y-rated" shall mean the malntenance of the employee's salary rate at the level effective the day preced1ng the effective date of the personnel act10n placing the employee in a lower salary range. The employee's salary shall rema1n at such level untll the salary range of the new classlf1catlon equals or exceeds the Y-rated salary. Any MTA member whose poslt1on 1S abollshed shall be demoted to the highest pos1t1on under the member's supervislon for which he/she qualifl.es and subJect to the "Y-Rating" provisions above. The employee shall be represented by the bargalnlng unlt WhlCh represents the Job class1flcatlon to which the affected employee has been transferred as the result of a personnel actlon and the employee shall be covered by the terms and condltions of the Memorandum of Understand1ng between the City of Santa Monlca and that bargalning un1t. Pay for Serving in a H1gher Job Classlflcat10n When, in the determinat10n of the Department Head or Clty Manager, lt is necessary to spec1flcally ass1gn an employee the slgn1flcant duties and responslb1l1tles of a hlgher classlflcatlon, the employee so asslgned shall be compensated as follows: A. If the posltlon 1S temporarily vacant due to the vacat1on, long-term slck leave or other temporary absence of the employee in the h1gher classif1cat1on, w1th sa1d absence to be a mlnimum of twenty (20) consecutive work days, the employee 14 temporarlly ass1gned shall receive the salary ra~e for the vacant classiflcatlon at the lowest salary step which provldes an lncrease of at least flve (5) percent over hls/her current salary for all such work days asslgned ln the hlgher classlf1cation. If the asslgnment was not projected to be a minimum of twenty (20) consecut1ve work days, but ends up belng at least twenty (20) consecutive work days ln length, the employee fllllng that hlgher classlficatlon will receive the h1gher rate of pay, as spelled out in this section, retroact1ve to the f1rst day of the asslgnment The C1ty shall not rotate employees 1n and out of the higher position claSSlflcat10n asslgnments ln order to avold paY1ng sald compensatlon. B. If the posit~on to be fllled lS vacant and there 1S no valld ellglble list for the classification, the Department Head or Clty Manager, if he/she has 1nltlated procedures to flll the vacancy on a permanent basls, may assign an employee who meets the minimum quallflcat10ns of the vacant pos1tlon to flll the positlon on a temporary detall (act1ng) basis. The employee so asslgned shall rece1ve the salary rate for the vacant classlflcatlon at the lowest salary step WhlCh provldes an increase of at least flve (5) percent over hls/her current salary. If an eligible list exists for the vacant pos1tlon, the Department Head shall appolnt an employee from the ellg1ble Ilst at the earliest possible date, and the provlsions of this paragraph shall be appllcable to the employee assigned to cover the vacancy in any lnterlm perlod Nothing ln thls sectlon shall require the Clty to make temporary assignments of employees. 15 ARTICLE III. SUPPLEMENTAL BENEFITS 3 01 Health Insurance Programs A. Medical Insurance Effect1ve July 1, 1997, the City agrees to pay up to a maximum of $475 per month towards the cost of medlcal insurance coverage for employees and ellgible dependents provlded that employees covered herein partlclpate ln the City-offered medlcal insurance programs The cost of medlcal 1nsurance coverage w1ll be set each medical plan year and wlll be a "composlte" monthly premlum derived by d1v1d1ng the total monthly premium for all medlcal plans offered by the City, except the PERS PORAe medical plans or any other PERS medlcal plans, by the total number of employees enrolled ln sald medlcal plans as of the beglnnlng of the medical plan year. Any extra payment requlred under such plans shall be pald by the employee electlng such coverage. The Clty and MTA agree that employees should benefit from any prem1um savlngs WhlCh accrue from the implementat10n of a new health insurance program (Trlple Optlon Plan + Kalser) in 1994. The follow1ng procedure will be utillzed to determ1ne sav1ngs, If any, and, in the event of savings, how sald savlngs will be distrlbuted (1) The actual med1cal 1nsurance premium costs for 1993 for non-safety employees shall be compared against the Clty'S actual premium costs for the new Trlple Optlon Plan + Kalser for those same employees (2) If there should be any premlum sav1ngs between 1993 and 1994, each employee's share of the savlngs w1l1 be determined by d1 v1dlng the total amount of the savlngs by the total number of C1ty employees (non-safety) part1c1pat1ng 1n the Clty'S medical insurance program. Each employee's share of any sav1ngs wlll be paid to the employee by no later than March 1, 1995. Prior to th1S payment, the C1ty will meet and confer with MTA and the other C1ty barga1nlng unl ts to determine the method by which sald payment wlll be made (e g., lump sum, contr1butlons to deferred compensatlon plan, etc.) . 16 3.02 In the event the med1cal insurance premlums for the Trlple Option Plan for 1995, and any subsequent calendar year, should be less than the actual Clty med1cal insurance prem1ums for 1993, the sav~ngs wlll be handled in accordance w1th the same procedure, outlined above, w1th the payment being made to the employees by no later than March 1 of the followlng calendar year. Upon written notiflcatlon from MTA, the City shall establ1sh a Post Employment Health Plan (PEHP) for employees covered hereln. There shall be no Clty - pa1d contr1butlons lnto the PERP. Contributlons to said plan shall be made by MTA employees through payroll deductlon. MTA shall notlfy the Clty as to the amount which will be contrlbuted by each MTA employee lnto the PEHP. B. Dental Insurance Dental insurance coverage shall be provided at no cost to the employees and thelr eligible dependents prov1ded that employees covered hereln partlc1pate ln the City-offered dental lnsurance programs. C. Vlsion Insurance The City agrees to contlnue to provlde vision care 1nsurance, at no cost, to employees covered herein. The City retalns the rlght to select the prov1der and to set the levels of coverage for said V1Slon care insurance plan. The City also reta1ns the right to change the provlder of sald vision lnsurance plan and/or the level of benefits provlded under that plan without meetlng and conferrlng. Retlrement The C1ty lS a contract member of the Public Employees' Ret1rement System, and 1t lS understood and agreed that such membershlp wlll be maintained and that employee ellglblllty classlflcatlon, contrlbution, and benef1ts are as prescr1bed ln the contract between the Clty and the PubllC Employees' Ret1rement System heretofore approved by the C1ty Counell. The City shall contlnue to pay on behalf of each permanent employee covered hereln one hundred (100) percent of the indlvldual employee's share of the requ1red ret1rement contrlbutlons to PERS [seven (7) percent of the employee's IIcompensatlon" as def1ned by PERS leg1s1ation] for the term of thlS MOU. 17 3 03 These payments are not lncreases of salary and no salary range appllcable to any of the affected employees shall be changed or be deemed to have been changed by reason of such paymentsi as a result, the Clty w111 not treat these payments as ordlnary 1ncome and thus, wlll not wlthhold Federal or State lncome tax therefrom. The City'S practice wlll be to report these payments as being those of the employees so that they wlll be credlted to the particular employee's lndlVldual account wlth PERS and upon termlnatlon will belong to the employee. It 1S agreed that lf State and/or Federal procedures requlre reporting of these payments in any other manner, the part1es w111 ab1de by such requlrements. TU1tlon Relmbursement The City will budget annually sufficient funds to prov1de each permanent Ilne-1tem employee of the MTA tUltlon and requlred study material reimbursement for career improvement or Job enhancement courses approved by authorized department management officlals and subJect to appeal to and approval of the Dlrector of Personnel. Reimbursement shall equal the total cost of tUltlon (exclus1ve of lodglng and meals) and the total cost of requlred study materials, provlded, however, that: A. The maximum annual amount of relmbursement per indlvldual employee shall not exceed one thousand dollars ($1,000 00). B. The course of study must be approved ln advance by authorlzed department officials and the D1rector of Personnel. C The course must be dlrected to qual1fy the employee for an employment posltlon represented in the City work force or to enhance current job skllls. D. The employee must exhlblt some reasonable expectatlon of quallfying for the new pos1tion upon successful completion of the study course lf that was the reason for the course. E Relmbursement shall be made upon successful complet10n of the preauthorlzed course and upon presentat10n of recelpts and proof of satisfactory course completion. F. shall there be ald the lS C1ty'S relmbursement an outs1de source of In no reduced event when 18 3 04 3.05 except in those cases where the a1d from any outslde source, plus the normal Clty rel~bursement, exceeds the cost of tUl::'lon and study material for the approved study course. G Only employees who have completed a probat1onary period Wl th the City shall be ellglble for th1S program. H. Courses for which tU1tlon re1mbursement w~ll be made must be taken on the employeeTs time or on authorlzed vacation leave I. The procedure to be followed with regard to the adm1nlstratlon of the tUltlon reimbursement program shall be establ1shed by the Personnel Department. Supplemental Retlrement Plans The City shall establish and maintain a deferred compensatlon plan pursuant to the provisions of Sectlon 457 of the Internal Revenue Code of 1986, as amended Each employee covered herein, at his or her sole discretion, may defer and have deposited into the City's 457 plan a port1on of hlS or her compensatlon up to the maximum amount permltted by law. The clty-pald contrlbut1on of $400 per month on behalf of each employee covered here1n 1nto the deferred compensatlon plan shall be discontlnued as of June 30, 1997. The City shall establlsh and malntaln a pension plan pursuant to the provisions of Section 401 (a) of the Internal Revenue Code of 1986, as amended Each employee covered here1n has agreed to contribute four hundred dollars ($475) per month into the 401 (a) plan. Th1S contr1butlon wl11 not reduce the employee's compensatlon for the purpose of calculatlng performance bonuses or any other payments WhlCh are based on the employee's base rate of pay. Mlleage Reimbursement and Energy Conservat1on Reimbursement to permanent employees covered herein for the authorized use of personal automob1les on C1ty business shall be at the rate authorized by the City Council. Reimbursement rates wlll be consldered ln prepar1ng budget recommendations at least every two (2) years. Santa Monica Mun1c1pal Bus Llne tokens, to a maximum of twenty (20) tokens per month, will be prov1ded to any 19 3.06 3 07 3.08 3 09 employee covered herein who SUb~lts, on the Clty form, a record of his/her trlps (home to work slte, or work slte to home) during the preced1ng month The Santa MonJ.ca Municipal Bus Llne route number and the bus number used for each trJ.p must be entered on the relmbursement form. Any employee who has not been lssued a Clty parklng pass, or who voluntar1ly turns ln his/her park1ng pass, shall be elJ.g1ble to recelve forty (40) tokens per month under the terms descr1bed above. Mental Health Insurance The City agrees to provide mental health 1nsurance coverage, at no cost, to permanent employees and thelr el1g1ble dependents prov1ded that employees covered herein participate 1n the City-provlded mental health lnsurance program Term-Llfe Insurance The Clty agrees to ma1ntaln at no cost to the employee a term llfe insurance plan for permanent employees covered herein, wlth individual coverage of tWJ.ce the employee's annual base salary Long Term Dlsabllity Insurance The C1ty agrees to mainta1n a long term disablllty plan for permanent employees covered herein, at no cost to the employee. Coverage shall be maintained under current terms. The maXlmum salary upon which beneflts are calculated shall be $6,667.00 per month. Recogn1t1on Of Exceptlonal Performance Exceptional performance beyond the establlshed goals and obJectives for employees covered herein may result ln a cash performance incent1ve of one (1) percent to ten (10) percent of the employee's annual salary for the past fiscal year. Such payments shall be regarded as one-tlme bonuses and shall not become part of the employee's base rate. They are subject to retlreffient contrlbut10ns. Employees below the E-step of the salary range may receive a mer1t step 1ncrease or a cash bonus for exceptlonal performance, but may not receive both ln a glven contract year. 20 A mer1t pool, no~ to exceed SlX (6) percent of the base salar1es of employees covered here1TI shall be establ1shed annually from which any and all such payments shall be made. Nothlng hereln shall be construed as requiring that all pooled funds be dlstrlbuted ln any year. If an employee recommended for a cash payment prefers, the Department Head may provide time off ln lieu of all or part of the cash payment provlded that the value of the above alternat1ve shall not exceed the cash payment originally proposed and the "mer~t pool" shall not be cons1dered to be lncreased by vlrtue of election of this alternative. An employee who elects to rece1ve leave 1n 11eu of cash payment must use said leave by the end of the fiscal year ln whlch the leave 1S granted. Any leave WhlCh is not used by June 30 of that flscal year shall be forfe~ ted. When a permanent employee covered herein leaves the serVlce of the Clty of Santa Monica, he/she shall not be entitled to a lump-sum payoff of any unused leave granted 1n 11eu of cash payment for an annual performance bonus. The program procedures shall include, at a minimum, that Department Head recommendatlons with appropr1ate justlficatlon be forwarded to the Clty Manager by July 31 of each year and that the City Manager and Director of Personnel review the department recommendatlons for consistency and resolve resource problems if the recommendatlons total more than the available funds by August 15. The final recommendations of the C1ty Manager will be made and commun1cated to the employees and thelr Department Heads during the last week ln August and payment shall be made by September 15. If, In the opinion of the C1ty Manager, no cash payment 1S warranted by an employee's performance, the employee shall have the opportun1ty to present, within ten (10} days of notlflcatlon that no payment is due, addlt10nal lnformation that mlght alter the Clty Manager's decision. The declsion of the Clty Manager, after conslderation of any such add1tlonal lnformat~on, shall be final and no appeal may be taken therefrom. The amount of payment is not subJect to appeal It is expressly understood and agreed that the performance lncent1ve payments described in this Section do not constltute a generally granted increase under Sect10n 1100 of the Clty Charter and Section 2.04.680 of the Santa Monlca Munlclpal Code and that denial of such payment does not constltute a demotlon. 21 3.10 3 11 Performance Based Increases If during the term of thlS MOU, the payroll syste~ has been changed by the City to prov~de for a ten-step salary range, the range adopted shall be as follows: "A" "AlII "B" "Bltl "CII II Cll] liD" IIDlll liE II 80 0% of Step "E" 82 5% of Step "E" 85 O%- of Step "E" 87 5% of Step "E" 90.0% of Step "EIT 92.5% of Step "E" 95.0% of Step "E" 97.5% of Step ITE" 100.0% Steps "All1,1I IIB1"/lTel", and "Dl" shall be referred to as "lnterlffi steps." Normal progression through the range shall be as provided 1n Sect10n 5.02, lIEffect of Job Performance on Salary." On an employee's anniversary date, the Department Head may elect to grant an 1ncrease to an lnterlm step, rather than to the next full step, 1f performance is rated Improvement Needed or Unacceptable. A Department Head may elect to grant an 1ncrease of one full step plus one lnterim step on the employee's annlversary date If performance 1S rated above average or better. In no event may such ~ncreases exceed the E-step of the salary range for the employeels class1f1catlon. Slck Leave Buy Back Employees covered hereln shall have the annual option to be pa1d for certaln unused slck leave on the terms noted below or to "bank" unused sick leave Payment at the employee's base rate for the fiscal year during which the slck leave was earned but not used shall be made only to employees on the payroll as of June 30 of that f1scal year To quallfy for payment an employee must have a slck leave IT bank " of twelve (12) days. For the purposes of this sectlon, "bank" shall mean sick leave earned 10 pr~or years and reported ~n the 11 Sick Leave Balance Brought Forward from Pr10r Contract Year" column of the "Vacatlon, Slck Leave and Compensatory Tlme" report ~ssued by the Finance Department at the beginning of the f1scal year durlng which payable slck leave is earned. 22 Annual slck leave payoffs under thls Section for employees wlth less than ten (10) years of serV1ce shall be made according to the follow1ng schedule Sick Leave Days Used In the Flscal Year Slck Leave Days Payable At Flscal Year End 2 or less 3 4 5 6 7 8 or more 6 5 4 3 2 1 o Annual slck leave payoffs under this Sectlon for employees wlth ten (10) or more years of service shall be made accord1ng to the follow1ng schedule, provlding there are enough slck days accrued lTI the employee's slck leave bank to cover the payoff described below' Slck Leave Days Used In the Flscal Year Slck Leave Days Payable At Fiscal Year End 2 or less 3 4 5 6 7 8 9 10 11 12 13 14 or more 12 11 10 9 8 7 6 5 4 3 2 1 o It is mutually acknowledged by the parties that the use of Code 40 or other tlme off not appropr1ately scheduled 1n advance will disqual1fy an employee from eligibility for payment under th1S sectlon. An exceptlon to this provislon would be the use of Code 40 for tlme off ln accordance with the Fam11y School partnershlP Act, as descrlbed ln Sect10n 4 13 of thlS Agreement. Slck leave for whlch payoff lS recelved shall be cons1dered nused" 1n that 1t w111 not be added to the n bank II (or lf added to the "bankn prlor to the payoff date shall be removed from the nbankn). 23 Slck leave payoffs under this sect10n shall be made by separate check by the end of July follow1ng the f1scal year 1n which the payable sick leave was earned For the purposes of this sect1on, slck leave days subJect to payoff at the end of the f1scal year shall be pa1d on the basls of eight (8) hours pay, at the employee's base salary rate of pay, for each sick leave day eligible for payoff. 24 ARTICLE IV: LEAVES 4 01 Paid Holldays Employees covered hereln shall receive pald holidays as provlded below: New Year's Day - January 1 Martln Luther Klngts Blrthday - Third Monday in January Pres1dents Day - Th1rd Monday 1n February Memorlal Day - Last Monday ln May Independence Day - July 4 Labor Day - First Monday 1n September Thanksgiving Day - Fourth Thursday in November The Fr1day follow1ng Thanksg1v1ng Day The Half-Day lmmed1ately before Christmas Day Chrlstmas Day - December 25 The Half-Day lmmed1ately before New Year1s Day One (1) non-cashable floatlng hol1day One (1) cashable floatlng hollday All other holidays declared by the Clty Council A non-cashable floatlng hollday becomes available as of January 1. Only those employees who are on the payroll as of January 1 shall be entltled to receive the non-cashable float1ng hollday for that fiscal year. The non-cashable floatlng hol1day must be taken before the end of the flscal year. If the non-cashable hollday lS not taken by the end of the fiscal year, the hol1day cannot be cashed out and is forfe1ted A floatlng hollday becomes avallable at the beginning of each flscal year a~d must De taken before the end of that flscal year. Only those employees who are on the payroll at the beginning of the fiscal year shall be entitled to recei ve the floatlng holiday for the fJ.scal year. A floating holiday not taken by the end of the f1scal year may be pald to the employee lf the employee enters the day on hJ.s/her flnal time card for the flscal year. If the employee elects to be pald for the floatlng holiday at the end of the f1scal year, he/she will be paid eight (8) hours of pay at the employee's base salary rate of pay Fallure to take the floatlng hol1day or to put the holiday on the last tlme card for the f1scal year shall constitute a forfelture by the employee. Whenever any day Ilsted hereln as a paid hol1day falls upon the flrst or second day off of any employee who has two (2) consecutlve days off, the day precedlng shall be deemed the holiday if it falls on the flrst day off, and the day followlng shall be deemed the hollday lf lt falls 25 4.02 on the second day off In 11eu of the day llsted. Whenever any day Ilsted here1n as a pald hollday falls upon any day off of an employee who does not have two (2) consecutlve days off, the follow1ng day shall be deemed the holiday for such employee. Employees in departments or dlvisions observ1ng dlfferent holiday schedules shall, 1n 11eu of holldays llsted above, receive holidays enJoyed by other operat1ng employees ln that department o~ division, prov1ded, however, that the same nurriller of holldays [twelve (12)] shall be observed. Vacatlon Leave Employees covered herein shall accrue vacat10n leave wlth pay on the following bas1s. A. Followlng completion of the flrst SlX (6) calendar months of contlnuous service, SlX (6) worklng days. B. Thereafter, up to and includlng flve years of serVlce, one (1) work1ng completed calendar month of serVlce. completed f or each (5 ) day C Thereafter, up to and 1ncluding ten (10) completed years of serV1ce, one and one-quarter (1.25) worklng days for each completed calendar month of serV1ce. D Thereafter, up to and lncluding f1fteen (15) completed years of serVlce, one and one-half (1.5) working days for each completed calendar month of serVlce. E. Upon completlon of f1fteen (15) years of service and thereafter, one and three-quarters (1 75) worklng days for each completed calendar month of service F. At the Clty Manager's discret1on, a new City employee who 1S covered by this bargalnlng agreement, based on the terms and condlt1ons of the employee 1 s previous employment r may be granted a vacatlon accrual rate Wh1Ch exceeds that llsted above. G. Employees are expected to take their vacation each year. An employee who has accrued vacatlon to the maX1mums prescrlbed herein may be required to take vacation leave ~n order to reduce the accumulatlon balance. The schedullng of vacation shall be according to department or dl vlsion pol1c1es and contingent on the serV1ce needs of the department. 26 4 03 If an employee lS denlea the t1me off requ1red to malntaln a vacat10n balance below the maximum allowed, the Department Head shall author1ze payment to the employee for such vacatlon as would exceed the maXlmum accumulatlon Ilmlt. However t lf the employee is scheduled to take vacatlon and falls or refuses to do so, he/she forfeits the excess accrual wlthout compensation. H. Accrual of vacatlon leave shall not exceed three (3) t1mes the employee1s annual accrual of vacat1on. I. Except as provlded hereln, the admlnlstrat10n or appllcatlon of vacatlon leave provlslons and the llmltat10ns on the accumulat10n, proportlonate accumulatlon, schedullng and payment for such leave shall be as prescr1bed 1n the C1Vll SerVlce provisions of the Santa Monica Munlclpal Code. J If an employee covered hereln should recelve a payoff for any unused accrued vacation days, said days shall be paid on the basis of elght (8) hours pay, at the employee's base salary rate of pay at the t1me of the payoff, for each vacatlon day ellglble for payoff. SlCK Leave A. The use of sick leave shall be defined as ln Sectlon 2.04.570 of the Santa Monlca Municlpal Code, hereby 1ncorporated as lf set forth in full here1n, except as follows Slck leave shall be deflned as absence from duty because of the employee's illness or off-the-)ob In)UrYt exposure of the employee to contaglous d1sease as eVldenced by certlflcat10n from an accepted medical authority, or medical or dental appo1ntments of the employee which could not be scheduled dur1ng non-work hours, w1th proper advance notlficatlon to the Department Head. B Employees covered hereln shall accrue slck leave w1th pay on the followlng basls, prov1ded that permanent part-t1me employees shall accrue slck leave ln that proportion as the number of hours budgeted for the posltlon bears to the full-time work week: 27 4 04 4.05 (1) Followlng the completlon of the f1rst SlX (6 calendar months of contlnuous serVlce, SlX (6 worklng days (2) Thereafter, one (1) working day for each completed calendar month of serVlce. (3) At the C1ty Manager's discretlon, a r..ew Clty employee who lS covered by this barga1Dlng agreement, based on the terms and condlClons of the employee's prevlous employment, may be granted a lump sum number of slck leave days upon his/her employment w1th the City of Santa Monica. C. The foregoing benef1ts are cumulative subJect to the following restrlctlons (1) No more than one-hundred-thirty (130) worklng days may be applied against slck leave for any one (1) 11lness. D. Any employee who is absent because of slckness or other physical disability shall notify his/her Department Head or other immediate super10r offlcer as soon as poss~ble but ln any event in accordance w1th department rules and regulations. Leave of Absence Wlthout Pay A permanent employee covered herel~ may be granted a leave of absence without pay upon appllcatlon approvec by the Department Head and the City Manager. Such leave may not exceed one (1) year's tlme. Upon expirat10n of the leave, the employee shall be relnstated to the positlon held before the leave was granted Such leave shall be granted only ln those cases where an employee's record of servlce and qualif1cations make 1t des1rable for the C1ty to reta1n the employee's serVlces even at the cost of some 1nconvenience to the Clty Mllltary Leave The City will observe the mll1tary leave require~ents of State and Federal law. 28 4.06 4.07 4.08 Workers I Compensatlon Leave Employees covered hereln hlred by the Clty on or before June 30, 1985, rece1v1ng dlsabll1ty payments under the Workers' Compensatlon ACL of Californla shall recelve the difference between the disability payments under the Act and full salary durlng the flrst nlnety (90) days of such disablllty absence Employees covered here1n hlred by the Clty on or after July 1, 1985, shall be entltled to only those Workers' Compensatlon benef1ts speclfled under State law and shall receive no salary from the Clty durlng a leave for 1nJur1es covered by the Workers' Compensatlon Act Jury Duty Employees covered hereln, when duly called to serve on any Jury and when unable to be excused therefrom, shall rece1ve the regular base compensat10n less all Jury fees rece1ved excluding mileage for the t1me requ1red to be spent ln court provided that an lndlvidual employee wlll be so paid for Jury serVlce only once every three (3) years and shall make every effort to cooperate with any request by the Department Head to request a delay in JUry service to accommodate 1mportant department work ln progress Each ewployee recelv1ng a notlce to report for Jury serVlce shall immed1ately notify his/her lmmedlate superVlsor. Whenever daily jury duty scheduling permlts, employees shall return to thelr regular dally job asslgnment to complete their regular daily work hours. Bereavement Leave Bereavement leave of not more than five (5) working days w1th pay shall be provlded for absence from duty due to the death of a member of the employee's famlly or the employee r s household. For the purposes of thls sectlon, ~family" shall lnclude spouse, child, brother, sister, parent, parent-ln-Iaw, son-ln-law, daughter-ln- law, step-parent, step-brother, step-sister, brother-in- law, slster-ln-law, grandparent, grandch11d, spouse of child, spouse of step-child, step-parent of spouse, uncle, aunt, n1ece and nephew 29 4.09 4.10 Management Incentlve Pay For thelr normal dutles and ln recognition of the unique responslbilitles of thelr Jobs, each employee covered hereln w1th less than fifteen (IS) years of serVlce shall rece1ve up to sixty-four (64) hours of management incentive pay per flscal year. The management lncentlve pay shall be accrued on a quarterly basls, with one- quarter, or sixteen (16) hours, of the total maXlmum allotment for the flscal year accTU1ng as of the flrst day of each quarter of the fiscal year. An addltional elght (8) hours of management incent~ ve pay per f1scal year shall be granted to all covered employees wlth flfteen (IS) or more years of serVlce For employees with flfteen (IS) or more years of serVlce, management 1ncent1ve pay shall be accrued on a quarterly basls, w1th one-quarter, or eighteen (18) hours, of the total maXlmum allotment for the f1scal year accruing as of the f1rst day of each quarter of the flscal year. Only those employees who are on the payroll at the beglnn1ng of the quarter shall be ellgible to accrue the management lncentive pay for that quarter. The management lncent1ve pay wlll be paid on a quarterly basis at the beginning for the quarter in which 1t lS accrued. The management incentive pay w111 be pald at the employee's salary rate ln effect at the beginning of each quarter. The Clty shall pay all PERS contrlbutlons due on thlS compensatlon For each participant, no more than SlXty- four (64) hours, for employees wlth up to fifteen (lS) years of service, or seventy-two (72) hours for employees wi~h fifteen (lS) or more years of serVlce, of management lncentl ve pay will be reported to PERS In any gl veil twelve-month period. The management lncenti ve pay w~ll not accrue from one f1scal year to another. No employee covered hereln shall be entitled to take leave 1n lleu of management lncentlve pay. Management Leave Each employee covered hereln shall be entitled to two (2) non-cashable management leave days. The two (2) non-cashable management leave days shall be available July 1 of each flscal year An employee must be on the payroll as of July 1 ~n order to be ellglble to receive the two (2) non-cashable management leave days for that f1scal year. These two (2) non-cashable management leave days shall not be accruable from year to year if not used in any glven flscal year, nor shall the employee be 30 4.11 4 12 4 13 compensated for unused non-cashable management leave days at the end of the f1scal year. ~~y unused non-cashable management leave day(s) shall be forfeited at the end of the f1scal year. Parental Leave Employees who demonstrate that they have prlmary responsibility for the care of a new child shall be ent1tled to a leave of absence totallng four (4) months lmmedlately follow1ng the chlld's blrth or adoptlon and shall be returned to the same line-item posltlon occupled pr10r to the leave upon 1 ts exp1ration. Paid vacation leave and slck leave, 1f applicable, as well as unpald leave shall be counted toward the four (4) month total Addlt10nal leave may be requested under the prOV1S1ons of Sectlon 4.04 of th1S MOU Maternlty leave lS not the same as parental leave and shall be administered in accordance w1th State and Federal law. Famlly and Medlcal Leave The City hereby agrees to lmplement famlly and medlcal leave 1n accordance with the California Family Rights Act (CFRA) and the Federal Famlly and Medical Leave Act (FMLA) for all employees covered hereln. These statutes shall supersede and be lmplemented 1n lleu of any contract language or Clty pollcy/practice WhlCh provides a lesser beneflt. Before the issuance of any adm1nlstratl ve regulatlons pertaining to leave under the CE'RA or FMLA, the City agrees to discharge its meet and confer obligation with MTA. Work/Fam11y Issues The City of Santa Monlca will comply wlth the Fam1ly School Partnersh1p Act, set forth in State Labor Code Section 230.8, as 1t pertains to public sector employers. 31 ARTICLE V. WORKING CONDITIONS 5.01 Safety and Loss Prevent10n The Clty shall provlde a reasonably safe and healthy working enVlronment 1n accordance w1th appllcable State and Federal laws, rules and regulations. MTA agrees that where safety devlces or 1tems of protect1ve equ1pment are requlred or furnished, thelr use shall be mandatory. Both part1es recognize the role that management officlals play ln loss preventlon and safety and agree that measures of loss prevent10n and safety are appropr1ate indlcators of performance of an employee subJect to thls MOD. It 1S mutually agreed that a representatlve of MTA may attend meetlngs of the Adrninistratlve Safety Commlttee when, in the oplnJ.on of such representatlve, a safety hazard exists WhlCb should be considered by the Admin1strat1ve Safety Commlttee. 5 02 Effect of Job Performance on Salary Normal placement on entry shall be at the A-Step of the salary range and advancement through the range shall normally be to B-Step at one (l) year of employment, C-Step at two (2) years of employment, D-Step at three (3) years of employment and E-Step at four (4) years of employment. The City Manager, ln exceptional cases, based upon specif1c appraisal of the lmportance and difficulty of the work and the experience and abillty of the person to be employed, or of the lncumbent, may authorlze entrance salarles higher than the mlnlmum, and speclal lncreases above the amount prescrlbed in the salary schedule for the class and length of serV1ce of the incumbent. In no event, however, shall the rate exceed the maXlmum rate for that class Notw1thstandlng any prov1s10n conta1ned herein, there wlll be no increase 1n wages of any klnd as a result of an UNACCEPTABLE ratlng on the employee's prescrlbed perlodlc performance rating. There wJ.ll be no subsequent lncreases in wages unt11 the UNACCEPTABLE rating has been lmproved to at least the COMPETENT level. If overall performance lS rated UNACCEPTABLE, the employee may be dism1ssed from serV1ce, and if two (2) consecutive performance ratings are marked UNACCEPTABLE, the employee shall be dismlssed by appo1ntlng authorlty for ineff1c1ency (SMMC Sectlon 32 5.03 2 04.490). Any overall ratlng 1n the IMPROVEMENT NEEDED category may delay the next scheduled salary step lncrease at the dlscretlon of the appolnt1ng authorlty Such act10n shall remain In effect until the overall ratlng has been lmproved to at least the COMPETENT level. Employee Parklng It lS hereby agreed that the Clty will make every effort to malnta1n free parklng as it presently exists for City employees at C1ty faclllt1es. The employees covered by thlS Agreement recognlze that the C1ty must comply wlth Regulatlon XV issued by the A1r Quallty Management Dlstr1ct (AQMD) and the CltylS Transportat1on Management Plan Ordlnance If the use of posltlve lncentlves does not result in the City meetlng the compl1ance requlrements of AQMD's Regulatlon XV or the City'S Transportatlon Management Ordlnance w1th1n one (1) year of the effective date of thls Agreement, 1t 18 understood that the City can lmplement a charge for parklng dur1ng the term of this Agreement in order to meet those requ1rements. In addition, if it should become necessary to charge for parklng durlng the term of this Agreement in order to comply wlth any other State or Federal requlrement regardlng transportatlon management, the Cl ty can 1mplement sald charge. However, In no event shall the City implement such a charge for parking wlthout meet1ng and conferrlng wlth MTA should any employee(s) represented by MTA be subJect to such a charge. 33 ARTICLE VI: EMPLOYER/EMPLOYEE RELATIONS 6.01 Payroll Deductions It is mutually understood and agreed that the Clty will, subJect to the prov1s10ns of Ordinance No 801 (CCS) and durlng the term of th1S MOD, deduct monthly and remlt to the off1ce or offlcer designated in the employee payroll deduction authorlzatlon Recognlzed Employee Organlzation dues, credit unlon lnvestments or payments, health and hosp1tallzation lnsurance premiums, and llfe and acc1dent 1nsurance prem1ums. Any or all of such payroll deductlons are subJ ect to term1nat1on by the C1ty Manager upon twenty-four (24} hours notlce for failure to comply w1th the provls10ns of this MOD. 6 02 Reasonable Notice It lS mutually understood and agreed that a copy of the Clty Councilor Personnel Board agenda for each meetlng mailed, by D.S Mail or 1nteroffice mail, to the authorlzed representative of MTA shall constltute reasonable wrltten notlce, and notice of an opportunity to meet with such agency, on all matters within the scope of representat10n upon wh1ch the Clty Councilor Personnel Board may act. 6.03 Grlevance and Complalnt POI1CY A grlevance lS a complalnt by one (1) or more employees concern1ng the appl1cat1on or interpretat10n of the MOD, ord1nances, resolut1ons, policies, pract1ces or procedures affecting the employee's wages, hours and/or work1ng condltlons provlded, however, that gr1evances regard1ng dlsc1pllnary act10ns must be lodged by the employee belng dlsclpllned and that appeals arising from suspensions, demot1ons and removals shall be subJect to the procedures outlined in Sectlon 2 04.750 et seq. of the Santa Mon1ca Mun1c1pal Code, and that complalnts regardlng performance evaluations shall be subJec~ to the procedures contalned ln Sect10n 2.04.480 of the Municipal Code. The Clty agrees that employees shall be afforded all due process rlghts provlded ln applicable law. The MTA agrees the rlghts of probationary employees are limlted to those provlded under the Santa Monica Mun1c1pal Code or City Charter. 34 Step . Step 2. Step 3 Step 4_ The aggrleved employee(s) shall meet with the 1mmed1ate supervlsor regardlng the gr1evance, wh1ch must be stated ln writlng, speclflcally citing the MOU provls1on, ordlnance, resolution, rule, POllCY, practice or procedure that lS the subject of the grlevance and the circumstances glvlng r1se to the grievance within thlrty (30) days of the event giving rlse to the grlevance If the grievance is not resolved by the end of the employee's thlrd (3rd) regularly scheduled day follow1ng the day on which presentatlon of the grlevance to the immediate superV1sor occurred, the employee may, w1th1n flve (5) regularly scheduled days, thereafter appeal to the second level supervisor, 1f any. If the grlevance lS not resolved by the end of the employee's fifth (5th) regularly scheduled day following presentation of the grievance to the second level supervlsor, 1f any, the employee may, within f1ve (5) regularly scheduled days, appeal to the Department Head. The Department Head shall meet wlth the employee and the employee's representative to attempt to resolve the grlevance. If the grievance 1S not resolved by the end of the employee's tenth (10th) regularly scheduled day follow1ng presentatlon of the gr1evance to the Department Head, the employee may, wlthln five (5) days, appeal to the Director of Personnel, who will investlgate the grlevance and make recommendatlons to the City Manager, whose decision shall be flnal. The decision of the Clty Manager shall be lssued no later than the end of the thlrtleth (30th) day followlng presentat10n of ~he grlevance by the D1rector of Personnel. It lS mutually understood and agreed that: A. All tlme perlods 1n thlS Section may be extended by mutual consent of the employee and the management representat1ve 1nvolved. B. A grievance shall be consldered untimely 1f not presented by the employee or the MTA within thlrty (30) days of the 1ncident glv1ng rlse to the grlevance or wlthln thlrty (30) days of its effect upon the employee ln those lnstances where it lS 35 shown that the employee could not reasonanly have known of the grievable act10n c. Employees shall have the right to be represented ~n grlevance matters ~n the followlng manner: 1 Employees shall have the rlght to represent themselves ~ndivldually ln grievance matters. 2. Employees may deslgnate department or of MTA to grlevance matters at steps of the gr1evance process. a member of the represent them in one (1) and two (2) 3. Employees may designate a member of the department, an MTA representative, or a legal representatlve to represent them ln steps three (3) and four (4) of the grievance process 4, For the purposes of thlS section, II days II shall mean regularly scheduled work days of the employees In the affected department or dlv1s10n. 5. Reasonable time off w1thout loss of payor benefits shall be glven to a grievant or MTA grlevance representative to lnvestigate or process grievances, and to wltnesses 1n any grlevance hear1ng or meetlng held durlng worklng hours. Before performing any grievance work, MTA representatives, the gr1evant or w1tness shall obtain permisslon from the lmmedlate supervlsor and shall report back to work when the grievance work lS completed. Ne1ther the grlevant nor representative nor witness shall interrupt or leave work lf the superv~sor determlrres that such lnterrupt10n or absence will unduly lnterfere wlth the work of the employee. However, if the supervlsor denies such tlme off when requested, time off must be granted wlth1n twenty-four (24) hours of such request. D. An employee who has lnltlated a grlevance, or asslsted another employee in lnltlatlng and/or processlng a grievance, shall not in any way be coerced, lntimidated or dlscrlm1nated agalnst 36 :N WITNESS WHEREOF, the partles hereto have caused this Memorandum of Understand1ng co be executed this day of , 1997 MANAGEMENT TEAM ASSOCIATES CITY OF SANTA MONICA Robe::::-t Harvey President John Jalill C1ty Manager Joan Akins, Negotlat1ons Team Robert Ayer, Negotlations Team Ron Fuchiwakl, Negotlatlons Team APPROVED AS TO FORM ATTEST: Marsha Jones Moutrle Clty Attorney C1ty Clerk 37 EXHIBIT A Classlfications subJect to the MOD shall be as follows: Account~ng Manager Adm1nistrative SerV1ces Officer Adm1nlstrative SerVlces Offlcer - EPWM Admlnistrat1ve SerVlces Officer - Earthquake Recovery Adm1nlstrator Administrat1ve Servlces Offlcer - Plannlng & Communlty Development Alrport Manager Asslstant City Clerk ASSlstant Clty Librarlan Ass1stant Director of Community and Cultural SerVlces ASs1stant Director of Transportation Budget Manager BUlldlng Officer Cable T.V. Manager Cemetery Superintendent Clty Englneer City Parking and Traffic Engineer Communlty & Senior Programs Manager Cultural Arts Adwlnlstrator Economic Development Manager Employee and Admin~stratlve Services Manager Event Facillt~es Manager Housing Manager Human Services Manager Informatlon Systems Manager Malntenance Manager Parks and Sports Manager Personnel Services Manager Planning Manager Pr1ncipal L1brarian Purchas1ng Agent Revenue ManagerjClty Treasurer Solid Waste Operat~ons Manager Traffic Operat1ons Superlntendent Translt Adm1nlstrat~on Manager TranSlt Development & Intergovernmental Relations Manager Translt Facilltles Maintenance & Veh1cle Englneer1ng Manager Transit Malntenance Manager Translt Operat1ons Supervlsor Transit Serv~ces Manager Utll1ties Manager Water and Waste Water Superintendent Water Production and Treatment Superlntendent 38