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SR-12-B (34) &c? - cf I /d;- /5 PE:KB:klb Council Meeting: December 3, 1991 DEe 2 igjl Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Resolution Authorizing the City Manager to Execute a Memorandum of Understanding with the Management Team Associates (MTA) INTRODUCTION This report requests that Council adopt the attached Resolution authorizing the City Manager to execute a Memorandum of Understanding (MOU) with the Management Team Associates. BACKGROUND The MOU with the Management Team Associates expired on June 30, 1991. Negotiations to replace the expired MOU commenced on March 29, 1991, and resulted in the attached MOU. This new agreement was ratified by the membership of MTA on November 25, 1991. This agreement includes cost of living adjustments for FY91-92 and FY92-93; eliminates overtime compensation and the accrual of compensatory time as of January 1, 1992; increases the amount the City contributes towards the City's deferred compensation plan as of January 1, 1992; increases the amount that the City contributes towards the cost of medical insurance, but retains a "cap" on the City's contribution towards the cost of medical insurance coverage for employees and dependents; as of July 1, 1992, increases the number of management leave days, increases - 1 - IqJ-B ''l: C' 3 ..le.... HV'lT IjJJ ~ the pool available for the performance bonus program, and increases coverage under a term life insurance plan; and makes some other minor economic and non-economic changes. FINANCIAL/BUDGET IMPACT Funds have been included in the adopted budget. RECOMMENDATION it is recommended that Council adopt the attached Resolution authorizing the city Manager to execute the attached Memorandum of Understanding (MOu) with the Management Team Associates. Prepared By: Karen Bancroft - 2 - RESOLU~ION NO. 8333{CCS) (CITY COUNCIL SERIES) A RESOLVTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ACTHORIZING THE CITY ~~NAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE MANAGEMENT TEAM ASSOCIATES WHEREAS, the City Administration and representatives of the Hanagement 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 Mon~ca requires preparation of a wr~~ten Memorandum of Understanding between the administratlon and employees if an agreement can be reached: and WHEREAS, Section 2.06 of Ordinance 801 (CCS) further provides that any such Memorandum of Understanding shall not be binding unless and until presented to the governlng body for determination; and ~>JHEREAS , the purpose of the Hemorandum of Understanding is to promote and provlde harmonious relatlons, cooperation, and understandlng. bet\"leen the City and the Management Team Associates: -1- NON, THEREFORE, THE CITY COUNCIL OF THE CI'TY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Santa Honica does hereby approve and author~ze the city Hanager to execute the Memorandum of t:nderstanding 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 Resolut~on, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: n.v~ "-. ROBERT 11. HYERS City Attorney ~- (KB."CC2") -2- Adopted and approved this 3rd day of December, 1991. ct:~~ i Mayor I hereby certify that the foregoing Resolution No. 8333(CCS) was duly adopted by the city Council of the City of Santa Monica at a meeting thereof held on December 3rd, 1991 by the following Council vote: Ayes: Counc~lmembers: Abdo , Holbrook, Olsen, Vazquez, Zane, Genser Noes: councilmembers: None Abstain: councilmembers: None Absent: Councilmembers: Katz ATTEST: ./~~/:&rY~ City Clerk / ---~ ARTICLE I: MEMORANDL~1 OF UNDERSTANDING BE Tt<1EEN CITY OF SANTA MONICA, CALIFORNIA AND MANAGEMENT TEAM ASSOCIATES TABLE OF CONTENTS GENERAL PROVISIONS 1. 01 1. 02 1. 03 1. 04 1. 05 1. 06 1. 07 1. 08 1. 09 1.10 1.11 1.12 1.13 1.14 1.15 ARTICLE II: Parties to Memorandum........................... 3 purpose. .. . . . .. .. .. . .. . .. .. . .. .. .. . . III .. . III II .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .... 3 Term of Agreement II .. .. ... .. .. .. .. .. .. .. .. .. .. III III III .. .. .. .. .. .. ... .. . .. .. .. .... 4 City council Approval...... ................. .... 4 Recognized Employee Association Name...... ...... 4 Scope of Representation.... ...... ........... .... 4 Full Understanding, Modification and Waiver..... ~ Management Rights Reserved... ................... 5 Peaceful Performance of city Service....... ..... 6 Validity of Memorandum of Understanding......... 6 captions for Convenience... ........... .......... 7 Equ.al Employment................................................................ 7 Def ini tions.. .. .. .. .. .. .. .. .. .. .. III .. .. .. .. .. .. .. .. .. ... .. .. .. ... .. .. .. .. .. .. .. .. .. .... 7 Overpayment Remedy. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 PaYments at Termination...... ...................10 COMPENSATION 2.01 2.02 2.03 2.04 2.05 2.06 ARTICLE III: Effective Date of Pay Increase........ ........ ..11 Sal ar ies.. .. .. .. .. .. .. .. .. .. ... .. .. .. ill .. .. .. II .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 11 Overtime.. .. .. .. .. .. .. II .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 12 Promotional Pay Rate.................. . . . . . . . . . .13 Y -Rat ing.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 13 Pay for serving in a Higher Job Classification..14 SUPPLEMENTAL BENEFITS 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 Health Insurance Programs........... .... ........15 Retirement. .... .. .. ..... .. .. ill .. .... .. .... II .. .. ... . . .. . . .. . . ... .. . . .15 Tuition Reimbursement......... ...... ......... ...16 Deferred Compensation................ ...........17 Mileage Reimbursement and Energy Conservation...17 Mental Health Insurance..... .......... ..........18 Term Life Insurance............................ .18 Long Term Disability Insurance..... ....... ......18 Recognition of Exceptional Performance... .......18 Performance Based Increases.. ......... ...... ....19 Sick Leave Buy Back.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 - 1 - ARTICLE IV: ~ LEAVES 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 ARTICLE V: Paid Hol idays. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Vacation Leave........................ II . .. .. .. .. .. .. .. .. .. II .. .. .. .. II .. .. .. 24- sick Lea veil .. .. .. . .. .. .. .. .. .. .. . . .. oil .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. 2 5 Leave of Absence Without Pay.............. ......26 Military Leave....... .. .. .. .... .. .... 41 .... .. .. .. .. .. .. .. III III ... .. .. .. .. .. .. .. .. .. 26 Workers' Compensation Leave. ... ............ .... .26 Jury Du t y.. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. . .. oil . ... .. .. .. .. . .. .. .. .. .. ... .. .. oil III 2 6 Bereavement Leave. ..............................26 Management Leave............................................................. 27 Parental Leave.......... III .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 28 WORKING CONDITIONS 5.01 5.02 5.03 ARTICLE VI: 6.01 6.02 6.03 Safety and Loss Prevention...................... 29 Effect of Job Performance on Salary......... ....29 Employee Parking................................ 30 EMPLOYER/EMPLOYEE RELATIONS Payroll Deductions... ..................... ... ...31 Reasonable Notice. ... ...........................31 Grievance and Complaint Procedure............ ...31 EXHI BIT A.................................................................. 35 - 2 - 1. 01 ARTICLE I: GENERAL PROVISIONS Parties to Memorandum 1. 02 This Memorandum of Understanding has been prepared pursuant to the terms of Ordinance No. 801 (CCS) of the city of Santa Monica, which Ordinance is hereby incorporated by reference as if fully set forth herein, and has been executed by the City Manager on behalf of management officials of the City and by the MANAGEMENT TEAM ASSOCIATES (MTA), and on behalf of employees occupying the line-item full-time employment position classifications set forth in Exh~bit A which is attached hereto and made a part hereof. In the event new job classifications are created which are proposed to be added to the MTA un1t, the Municipal Employee Relations Officer will notify MTA prior to the Personnel Board and City Council considerations of the new classifications. Any classifications proposed to be added to the unit shall be mutually agreed upon in writing and will become effective upon execution by the President of MTA and the Municipal Employee Relations Officer. As of January 1, 1992, the following position classifications will no longer be represented by MTA. However, an incumbent in any of these classifications as of December 31, 1991 will have the option of being "grandfatheredfl in that he/she will continue to receive MTA benefits, as set forth in this Agreement and any subsequent Agreements, as long as he/she continues to hold the position classification in question OR of transferring to the Supervisory Team Associates (STA) bargaining unit and receiving STA benefits, as set forth in the STA Agreement and any subsequent STA agreements. This will be a one-time option given to affected employees. Auditorium Operations Supervisor Recreation Supervisor Purpose The parties agree that the purpose of this MOU is: to promote and provide harmonious relations, cooperation and understanding between the City and the employees covered herein; to provide an orderly and equitable means of resolving differences which may arise under this memorandum I and to set forth the full agreements of the parties reached as a result of meeting and conferring in good faith regarding matters within the scope of representation for employees represented by MTA. - 3 - 1. 03 1. 04 1. 05 1. 06 Term of Agreement This Agreement shall be effective as of the 1st day of July 1991 and shall remain in full force and effect until the 30th day of June 1993. It shall be automatically renewed from year to year thereafter, unless either party shall notify the other in writing not later than March 1 of each year that it desires to terminate or modify this Agreement, and specifically indicates requested modifications. In the event that such notice is given, negotiations shall begin no later than April 1 with a signed contract desired July 1. city council Approval This MOU is of no force or effect whatsoever unless or until ratified and approved by resolution duly adopted by the City council of the City of Santa Monica. Recognized Employee Association Name The MTA is hereby acknowledged as the Recognized Employee Organization representing only the permanent line-item employment position classifications set forth in Exhibit A (which is attached hereto and made a part hereof) pursuant to Section 3.04 (c) of Ordinance No. 801 (CCS). It is the mutual understanding of the parties hereto that acknowledgment of the MTA as the Recognized Employee Organization: A. Does not preclude employees position classifications themselves ir.dividually in relations with the city. in such from their employment representing employment B. Does not preclude or restrict the right of management officials to meet and consult with employees in such employment position classifications concerning their employment relations with the city. Scope of Representation The scope of representation of the Recognized Employee Organization shall include all matters relating to employment conditions and employer-employee relations incl uding , but not 1 imi ted to, wages, hours, and other terms and conditions of employment, except, however, that the scope of representation shall not include consideration of the merits, necessity, or organization of any service or activity provided by law or executive order and that the scope of representation shall be exercised or performed in compliance with the provisions of Ordinance No. 801 (CCS). - 4 - 1. 07 1. 08 Full Understanding, Modification and Waiver The parties agree that each has had full and unrestricted right and opportunity to make, advance, and discuss all matters properly wi thin the scope of representation as outlined in section 2.05 of Ordinance No. 801 (CCS). This MOU constitutes the full and complete agreement of the parties and there are no others, oral or written, except as specified in this Agreement. The parties are not bound. by any past practices or understandings of either party unless such past practices or understandings are speclfically stated in this MOU except that provisions or conditions not specifically changed in this or previous HOU's shall be as prescribed by the Civil Service provisions of the Santa Monica City Charter and the Santa Monica Municipal Code. Each party, for the term of this MOU, specifically waives the right to demand or petition for changes herein, whether or not the subjects were known to the parties at the time of execution hereof as proper subjects within the scope of representation as outlined in Section 2.05 of Ordinance No. 801 (CCS). Management Rights Reserved The city retains all rights not specifically delegated by this Agreement, including, but not limited to, the exclusive right to: A. Direct, supervise, discipline, discharge, and retain employees. suspend, schedule, hire, promote, transfer, assign, B. Relieve employees from duties because of lack of work or funds, or under conditions where continued work would be inefficient or nonproductive. C. Determine services to be rendered, operations to be performed, utilization of technology, and overall budgetary matters. D. Determine the appropriate job classifications and personnel by which government operations are to be conducted. E. Determine the overall mission of the unit of government. F. Maintain and improve the efficiency effectiveness of government operations. and G. Take any necessary actions to carry out the mission of an agency in situations of emergency. - 5 - 1. 09 1.10 H. Take whatever other actions may be necessary to carry out the wishes of the public not otherwise specified above or by collective agreement. Peaceful Performance of City Service It is mutually understood and agreed that participation by any employee in a strike or a concerted work stoppage terminates the employment relationship in the absence of specific written waiver of such termination by an authorized management official. A. It is further understood and agreed that none of the parties hereto will participate in, encourage, assist or condone any strike, concerted work stoppage, cessation of work, Slow-down, sit-down, stay-away, picketing or any other form of interference with or limitation of the peaceful performance of City services. B. In the event that there occurs any strike, concerted work stoppage, cessation of work, slOW-down, sit-down, stay-away, picketing or any other form of interference with or limitation of the peaceful performance of city services, the city, in addition to any other lawful remedies or disciplinary actions, may by action of the City Manager cancel any or all payroll deductions, prohibit the use of bulletin boards, prohibit the use of City facl.lities, and prohibit access to former work or duty stations. c. Neither the employee organization, nor any person acting in concert with them, will cause, sanction, or take part in any strike, walk-out, sit-down, slow-down, stoppage of work, picketing, retarding of work, abnormal absenteeism, withholding of services, or any other interference with the normal work routine. The provisions of this Article shall apply for the same term as this Agreement, or during any renewal or extension thereof. Violation of any provision of this MOU by the Recognized Employee Organization shall be cause for the City, at its sole option, to terminate this Agreement in addition to whatever other remedies may be to the City at law or in equity. D. The City agrees that there shall be no general lockout of bargaining unit members. Validity of Memorandum of understanding If any provision of this MOU is determined to be invalid or illegal by a court of competent jurisdiction, then such provision shall be severed from this MOU, but the remainder hereof shall remain in full force and effect. - 6 - . , 1.11 1.12 1.13 The parties hereto shall immediately commence to negotiate for the purpose of replacing any such invalid or illegal provision. Should any change be made in any Federal or state law, or in any rules and regulations implementlng such legislation, or in any City Charter provision or Santa Monica Municipal Code provision which would be applicable and contrary to any provision herein contained, then such provision of this MOU shall be automatically terminated, but the remainder of this MOD shall remain in full force and effect. Such legislation and/or rules and regulations shall supersede this MOU and applicable clauses shall be substituted for those ruled invalid or illegal. The parties hereto shall immediately commence to negotiate for the purpose of replacing any such invalid or illegal provision. Captions for Convenience The captions herein are for convenience only and are not a part of this MOil and do not in any way limit, define, or amplify the terms and provisions hereof. Equal Employment It is agreed by both parties to this MOil that management officials play a special role in achieving equal opportunity in selecting, training, promoting, and disciplining employees. The parties hereto will work in partnership with the Personnel Department to ensure full compliance with the letter and spirit of all applicable local, state, and Federal laws, rules and regulations governing equal opportunity and with the Affirmative Action Program and Sexual Harassment Policy of the City of Santa Monica which are incorporated by reference herein. Both parties acknowledge that progress in meeting affirmative action goals and the maintenance of a harassment-free work environment are appropriate indicators of performance of an employee subject to this MOil. Definitions The following definitions are to be applied in the interpretation of this MOD: A. "Salary Range" shall mean the normal five step (A through E) hourly or monthly pay scale (and the bi-weekly equivalent) assigned to each employment position classification within the City work force, unless changes to the payroll system make a range of ten (10) steps possible, as described in Section 3.10 of this MOD. - 7 - B. "Salary Range Steps A through E" for each employment position classification within the city work force shall mean and be established to bear the following percentage relationship to Salary Range Step E computed to the nearest dollar. Normal progression through the range toward E step shall be in annual step increments contingent on satiSfactory service. 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 is fifty (50) cents or less and the next higher dollar when the computed amount is fifty-one (51) cents or more. D. "Line-item position" shall mean a position which is: (1) specifically itemized in the personnel schedule of the annual budget of the City of Santa Monica, and (2) eligible to accumulate vacation, sick leave and other time off in proportion to the percentage of the full-time forty (40) hour week. Other frlnge benefits shall be provided to part-time employees covered herein as if they were employed on a full-time basis. E. "Permanent Employees" shall mean: (1) A person who is legally an incumbent of a line-item position, full or part-time; or (2) A former incumbent of a line-item position on authorized leave of absence from a regularly budgeted position which position is held pending the employee'S return. The term "permanent employee" shall not be construed to imply a guarantee of continued employment. However, no permanent employee shall be denied the right to those due process protections appropriate to his/her status under the Municipal Code and City Charter and applicable State law. F. "Date of Entrance Anniversary" shall mean the date which recurs annually after the date of entry into a position in the classified service of the City of Santa l1onica, either by original employment, - 8 - . . 1.14 re-employment or promotion. The date of entrance for employees with broken service shall be considered as the date on ~lhich the last unbroken service was effective. G. "Satisfactory Service" shall mean the attainment of an overall rating not less than "Competent" on the performance report associated with the employee I s most recent date of entrance anniversary. H. "Full-l'ime ~vork Week" shall mean forty (40) hours. (1) Incumbents of line-item positions employed in a work week less than that defined as the full-time work week shall be compensated in that proportion of the compensation for full-time employment as the number of hours budgeted for that position bears to the full-time work week~ incumbents of line-item positions employed in a work week greater than that defined as the full-time work week shall be compensated for hours in excess of the full-time work week on the basis of and in accordance with the provisions of the Article hereof relating to overtime. (2) Incumbents of line-item positions regularly working less than the full-time work week shall accrue vacation, sick leave and other time off in the same ratio as the average number of hours they work per week is to the full-time work week for the position occupied. other fringe benefits shall be provided to part-time employees covered herein as if they were employed on a full-time basis. I. "Pay" shall mean compensation for regular hours worked, sick leave, vacation, bereavement leave, hol idays , management 1 eave days, compensatory time off and/or jury duty. J. "In Pay status" shall mean earning pay. K. "Completed Calendar Month of Serviceu shall mean a calendar month in which an employee has been in pay status for eleven (11) or more working days. L. "Base Rate" shall mean the hourly rate for the employee's salary step excluding any special assignment, bonus pays or other compensation. Overpayment Remedy Permanent employees covered herein shall reimburse the City for any overpayment of wages or benefits. Said reimbursement shall not be required until the City - 9 - 1.15 notifies the affected employee in writing. Reimbursement may be accomplished by a lump-sum deduction made on the next subsequent employee payroll warrant following overpayment notification, or by other reasonable re-payment method mutually acceptable to the employee and the City, except that the lump-sum deduction shall be required if the next subsequent employee payroll warrant is the final or termination warrant issued to the affected employee. Payments at Termination When permanent employees covered herein leave the service of the City of Santa Monica, they shall be entitled to lump-sum payoff of vacation leave, unused management leave days and unused accrued compensatory time only. No claim shall be made against the City for the use or payment of unused s1-ck leave, nor shall the effective date of termination be extended by the use of compensatory time, sick leave, vacation or other leave days. - 10 - 2.01 ARTICLE II: COMPENSATION 2.02 Effective Date of Pay Increase Notwithstanding any other provision contained herein, changes to the salary range and salary related benefit changes provided herein shall become effective on the first day of the payroll period closest to the effective date stated herein. If the effective date stated herein falls on the Sunday in the middle of a pay period, the effective date shall be the first day of the following payroll period. Salaries Salaries of city employees in line-item positions shall be on a monthly rate, paid on a bi-weekly equivalent basis. In lieu of the bi-weekly equivalent to a monthly rate, the city Manager may fix the compensation of any pos~t~on at an hourly rate. In positions for which the work week is forty (40) hours, the hourly rate shall be determined by dividing the bi-weekly rate by eighty (80). A. Effective July l, 1991, the E-step salaries of employees covered herein shall be increased by 4.7 percent. For the following classifications, the salary increase provided in Subsection A of this Section shall be applied to the following E-step salaries, which reflect an equity adjustment. For the purposes of this Section, the E-step salary for all other classifications covered herein shall be that E-step salary in effect as of June 30, 1991. Assistant city Clerk Accounting Manager Community & Neighborhood Services Manager Housing Program Manager Revenue Manager/City Treasurer Water Production Treatment Superintendent $4,359 5,247 5,670 5,670 5 , 715 5,115 B. Effective July 1, 1992, the E-step salaries of employees covered herein shall be lncreased by a minimum of four (4) percent, OR, if higher, by an amount equal to the percentage increase in the "cost-of-living" index as measured by the Consumer Price Index (for Urban Wage Earners and Clerical Workers, 1967 = 100) for Los Angeles-Riverside- Anaheim, California, published by the U.S. Department of Labor, Bureau of Labor statistics, for - 11 - 2.03 the base period of However, in no event eight (8) percent. April, 1991 to April, 1992. shall said adj ustment exceed C. A given classification covered by this MOU will be eligible to receive an equity adjustment providing that the compensation study conducted by the city of Santa Monica substantiates the need for an equity adjustment to bring the salary range of that classification in line with the mean salary paid to the same classification found in comparable cities. The City will be willing to receive and evaluate any salary comparison data that MTA might want to make available regarding an equity adjustment for a given classification. Should a compensation study indicate that a given job classification is currently being paid above the mean salary paid to the same classification found in comparable cities, the salary range of that classification will remain unchanged. Internal equity factors will also be taken into consideration, as deemed appropriate by the City, when determining whether or not an equity adjustment for a given classification is warranted. Equity adjustments described herein will be considered on an annual basis, either as a part of the annual budget process if no MOU negotiations should be occurring during the year or as a part of the MOU negotiations process should the MOU be up for negotiation. Overtime Through the payroll period ending December 28, 1991, when employees covered herein work more than forty (40) hours in one (1) week, they shall accrue compensatory time on an hour for hour (straight time) basis to a maximum of forty (40) hours. When employees have accrued forty (40) hours of compensatory time, they shall be paid on an hour for hour basis at the straight time base rate so long as forty (40) hours of compensatory time remains unused. When accrued compensatory time drops below forty (40) hours, overtime shall again be compensated by hour for hour accrual until the forty (40) hour maximum is again reached. All overtime must have the prior approval of an authorized management official. si tuations in which an employee accrues more than 125 hours of overtime prior to December 29, 1991, may be subject to review by the city Manager. If an employee has made a good faith effort to use accrued compensatory time before December 29, 1991, and if the Department Head certifies by letter accompanying the final timecard for the pay period ending December 28, 1991 that compensatory time could not be used due to - l2 - ~ , 2.04 2.05 press of business, the employee shall be paid the straight time value of the accrued time at the employee's base rate. If no good faith effort has been made, the compensatory time shall be forfeited with no compensation. As of December 29, 1991, employees covered herein will become exempt employees under the exemption of the Fair Lahor standards Act (FLSA) as it may be applicable to public agency employees. As a result, employees covered herein will not have to account for their work time on an hourly basis and will only need to account for each full day of absence which occurs on a regularly scheduled work day. Employees covered herein, as exempt employees, will no longer be eligible to accrue compensatory time or be paid overtime. Promotional Pay Rate If a permanent employee covered herein is promoted and his/her salary is equal to or greater than the entrance salary of the promotional classification, the employee's salary shall be increased to the next higher salary rate which provides a minimum five (5) percent salary increase, provided, however, that in no event shall the salary rate exceed the maximum salary rate for the new classification. In the event the promotion is to a supervisory position, the employee promoted shall receive not less than the next higher salary rate which provides a minimum five (5) percent increase above the highest salary rate being paid to any subordinate, provided, however, that in no event shall the salary rate exceed the maX1mum salary rate for the new classification. A reclassification of a permanent employee covered herein to a higher level job classification will be considered a promotion and the employee's salary shall be increased to the higher salary rate in the new classification which provides a minimum of five (5) percent salary increase, provided, however, that in no event shall the salary rate exceed the maximum salary rate for the new classification. Y-Rating When a personnel action, e.g., demotion due to layoff or reclassification, results in the lowering of the salary range of a permanent employee covered herein, the incumbent employee's salary may be Y-rated. "Y-rated" shall mean the maintenance of the employee's salary rate at the level effective the day preceding the effective date of the personnel action placing the employee in a lower salary range. The employee's salary shall remain at such level until the salary range of the new classification equals or exceeds the Y-rated salary. Any MTA member whose position is abolished shall be demoted - 13 - 2.06 to the highest position under the member's supervision for which he/she qualifies and subject to the "Y-Rating" provisions above. Pay for Serving in a Higher Job Classification When, in the determination of the Department Head or city Manager, it is necessary to specifically assign an employee the significant duties and responsibilities of a higher classification, the employee so assigned shall be compensated as follows: A. If the position is temporarily vacant due to the vacation, long-term sick leave or other temporary absence of the employee in the higher classification, with said absence to be a minimum of twenty (20) consecutive work days, the employee temporarily assigned shall receive the salary rate for the vacant classification at the lowest salary step which provides an increase of at least five (5) percent over his/her current salary for all such work days assigned in the higher classification. If the assignment was not projected to be a minimum of twenty (20) consecutive work days, but ends up being at least twenty (20) consecutive work days in length, the employee filling that higher classification will receive the higher rate of pay, as spelled out in this Section, retroactive to the first day of the assignment. The City shall not rotate employees in and out of the higher position classification assignments in order to avoid paying said compensation. B. If the position to be filled is vacant and there is not valid eligible list for the classification, the Department Head or City Manager, if he/she has initiated procedures to fill the vacancy on a permanent basis, may assign an employee who meets the minimum qualifications of the vacant position to fill the position on a temporary detail (acting) basis. The employee so assigned shall receive the salary rate for the vacant classification at the lowest salary step which provides an increase of at least five (5) percent over his/her current salary. If an eligible list exists for the vacant position, the Department Head shall appoint an employee frc~ the eligible list at the earliest possible date, and the provisions of this paragraph shall be applicable to the employee assigned to cover the vacancy in any interim period. Nothing in this Section shall require the city to make temporary assignments of employees. - 14 - ARTICLE III: SUPPLEMENTAL BENEFITS 3.01 Health Insurance Programs Effective July 1, 1991, the City agrees to pay up to a maximum of $435 per month towards the cost of medical insurance coverage for employees and eligible dependents provided that employees covered herein participate in the ci ty-offered medical insurance programs. The cost of medical insurance coverage will be set each medical plan year and will be a "composite" monthly premium derived by dividing the total monthly premium for all medical plans offered by the City, except the PERS PORAC medical plans or any other PERS medical plans, by the total number of employees enrolled in said medical plans as of the beginning of the medical plan year. Any extra payment required under such plans shall be paid by the employee electing such coverage. Effective July 1, 1992, the maximum amount up to which the city agrees to pay towards the cost of medical insurance coverage will be equal to the highest medical insurance premium contribution cap established for any of the City I s other bargaining units or the Executive Pay Plan members, excluding any premium contribution cap established for the PERS PORAC medical plans or any other PERS medical plans. The same terms and conditions outlined in the first paragraph of this section will still apply. Dental insurance coverage shall be provided at no cost to the employees and their eligible dependents provided that employees covered herein partic~pate in the CitY-Offered dental insurance programs. The City agrees to continue to provide vision care insurance, at no cost, to employees covered herein. The city retains the right to select the provider and to set the levels of coverage for said vision care insurance plan. The City also retains the right to change the provider of said vision insurance plan and/or the level of benefits provided under that plan without meeting and conferring. 3.02 Retirement The City is a contract member of the Public Employees' Retirement System, and it is understood and agreed that such membership will be maintained and that employee eligibility classification, contribution, and benefits are as prescribed in the contract between the city and the Public Employees I Retirement System heretofore approved by the City Council. The City shall continue - l5 - 3.03 of each permanent employee covered (lOO) percent of the individual the required retirement contributions (7) percent of the employee's defined by PERS legislation] for the to pay on behalf herein one-hundred employee's share of to PERS [seven "compensation" as term of this MOD. These payments are not increases of salary and no salary range appl,~ ~able to any of the affected employees shall be changed cr be deemed to have been changed by reason of such payments; as a result, the city will not treat these payments as ordinary income and thus, will not withhold Federal or state income tax therefrom. The City's practice will be to report these payments as being those of the employees so that they will be credited to the particular employee's individual account with PERS and upon termination will belong to the employee. It is agreed that if State and/or Federal procedures require reporting of these payments in any other manner, the parties will abide by such requirements. Tuition Reimbursement The City will budget annually sufficient funds to provide each permanent line-item employee of the MTA tuition and required study material reimbursement for career improvement or job enhancement courses approved by authorized department management officials and subject to appeal to and approval of the Director of Personnel. Reimbursement shall equal the total cost of tuition (exclusive of lodging and meals) and the total cost of required study materials, provided, however, that: A. The maximum annual individual employee dollars ($1000.00). amount of reimbursement per shall not exceed one thousand B. The course of study must be approved in advance by authorized department officials and the Director of Personnel. c. The course must be directed to qualify the employee for an employment position represented in the city work force or to enhance current job skills. D. The employee must exhibit some reasonable expectation of qualifying for the new position upon successful completion of the study course if that was the reason for the course. E. Reimbursement shall be made upon successful completion of the pre-authorized course and upon presentation of receipts and proof of satisfactory course completion. - 16 - 3.04 3.05 F. In no event shall the city's reimbursement be reduced when there is an outside source of aid except in those cases where the aid from any outside source, plus the normal city reimbursement, exceeds the cost of tuition and study material for the approved study course. G. only employees who have completed a probationary period with the city shall be eligible for this program. H. Courses for which tuition reimbursement will be made must be taken on the employee's time or on authorized vacation leave. Deferred compensation Each employee covered herein will be offered participation in the City's deferred compensation plan. Effective July 1, 1991 through December 31, 1991, the City agrees to contribute to the plan the amount the participating employee is contributing to the plan on his/her behalf, but not to exceed seventy-five (75) dollars per month for any participating employee. Effective January 1, 1992, the City agrees to contribute to the plan three hundred-twenty five (325) dollars per month per participating employee. In addition, the City further agrees to contribute to the plan the amount the participating employee is contributing to the plan on his/her behalf, but in no event shall said additional amount exceed seventy-five (75) dollars per month per participating employee. The City' 5 contribution under this Section shall not exceed four hundred (400) dollars per month per participating employee. Mileage Reimbursement and Energy Conservation Reimbursement to permanent employees covered herein for the authorized use of personal automobiles on city business shall be at the rate authorized by the city Council. Reimbursement rates will be considered in preparing budget recommendations at least every two (2) years. Santa Monica Municipal Bus Line tokens, to a maximum of twenty (20) tokens per month, will be provided to any employee covered herein who submits, on the city form, a record of his/her trips (home to worksite, or worksite to home) during the preceding month. The Santa Monlca Municipal Bus Line route number and the bus number used Dor each trip must be entered on the reimbursement form. Any employee who has not been issued a City parking pass, or who VOluntarily turns in his/her parking pass, shall be eligible to receive forty (40) tokens per month under the terms described above. - 17 - 3.06 3.07 3.08 3.09 Mental Health Insurance provide mental health insurance to permanent employees and their provided that employees covered the city-provided mental health The City agrees to coverage, at no cost, eligible dependents herein participate in insurance program. Term Life Insurance The city agrees to maintain at no cost to the employee a term life insurance plan for permanent employees covered herein, with individual coverage of not less than $35/000. As of July 11 1992, the city agrees to maintain at no cost to the employee a term life insurance plan for permanent employees covered herein, with ~ndividual coverage of twice the employee' 5 annual base salary. This term life insurance plan will replace the plan listed in the first paragraph of this Section. Long Term Disability Insurance The city agrees to maintain a long term disability plan for permanent employees covered hereinl at no cost to the employee. Coverage shall be maintained under current terms. The maximum salary upon which benefits are calculated shall be $6,667.00 per month. Recognition Of Exceptional Performance Exceptional performance beyond the established goals and objectives for employees covered herein may result in a cash performance incentive 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-time bonuses and shall not become part of the employee's base rate. They are subject to retirement contributions. Employees below the E-step of the salary range may receive a merit step increase or a cash bonus for exceptional performance 1 but may not receive both in a given contract year. A merit pool, not to exceed five (5) percent of the base salaries of employees covered herein shall be established annually from which any and all such payments shall be made. Nothing herein shall be construed as requiring that all pooled funds be distributed in any year. The program p~ocedures shall include 1 at a minimum, that Department Head recommendations with appropriate justification be forwarded to the City Manager by July 31 of each year and that the city Manager and Director of Personnel review the department recommendations for consistency and resolve resource problems if the - 18 - 3.10 recommendations total more than the available funds by August 15. The final recommendations of the City Manager will be made and communicated to the employees and their Department Heads during the last week in August and payment shall be made by September 15. If, in the opinion of the city Manager, no cash payment is warranted by an employee'S performance, the employee shall have the opportunity to present, within ten (10) days of notification that no payment is due, additional information that might alter the City Manager's decision. The decision of the City Manager, after consideration of any such additional information, 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 incentive payments described in this section do not constitute a generally granted increase under section 1100 of the City Charter and section 2105E of the Santa Monica Municipal Code and that denial of such payment does not constitute a demotion. Upon the execution of this Agreement, a joint labor-management committee will be established to develop specific criteria and procedures to be used as the basis on which each MTA employee will be evaluated to determine the amount, if any, of his/her merit bonus. This committee will be comprised of not more than three (3) MTA representatives and three (3) Department Heads. The timeline outlined in paragraph three (3) of this section could be modified as a result of the committee's recommendation. The committee's recommendations will be subject to the approval of the City Manager and can only be implemented 1f said approval is obtained. The committee will present its initial recommendations to the City Manager by no later than December 3l, 1992. As of July 1, 1992, the merit pool described above shall not exceed six (6) performance bonuses The same terms and shall still apply. percent and shall apply to the based on the FY92 - 9 3 fiscal year. conditions listed in this Section Performance Based Increases If during the term of this MOU, the payroll system has been changed by the City to provide for a ten-step salary range, the range adopted shall be as follows: nAil 80.0% of Step liE II "Aln 82.5% of Step nEn "B" 85.0% of Step "E" "Bl" 87.5% of Step "E" "C" 90.0% of step "E" "Cl" 92.5% of step "E" - 19 - 3.11 "D" "Dl" "E" 95.0% of step "E" 97.5% of step "E" 100.0% steps "Al," "Bl, II "Cl," and "Dl" shall be referred to as lIinterim steps. II Normal progression through the range shall be as provided in section 5.02, "Effect of Job Performance on Salary. II On an employee I s anniversary date, the Department Head may elect to grant an increase to an interim step, rather than to the next full step, if performance is rated Improvement Needed or Unacceptable. A Department Head may elect to grant an increase of one full step plus one interim step on the employee's anniversary date if performance is rated above average or better. In no event may such increases exceed the E-step of the salary range for the employee's classification. sick Leave Buy Back Employees who are eligible for participation in the payoff option as described below who previously elected to accumulate unlimited sick leave have had the option of electing the payoff option. Future hires shall make their selection at the time they first become eligible to elect payoff. Once an employee makes his/her decision to accumulate unlimited sick leave or to participate in the payoff program and limit accumulation to one-hundred- thirty (130) days, the decision is irrevocable. Employees covered herein have two (2) optional sick leave programs to choose from. Because the choice is one-time and irrevocable, employees should carefully consider their long and short term needs in arriving at a choice. The two (2) programs are as follows: A. Program I - The employee has the annual option paid for certain unused sick leave on the noted below or to "bank" unused sick leave maximum accumulation of one-hundred-thirty days. to be terms to a ( 13 0) Payment at the employee I s base rate for the fiscal year during which the sick leave was earned but not used shall be made only to employees on the payroll as of June 30 of that fiscal year. To qualify for payment an employee must have a sick leave "bankll of twelve (12) days. For the purposes of this section, IIbank" shall mean sick leave earned in prior years and reported in the "sick Leave Balance Brought Forward from Prior Contract Year" column of the "Vacation, Sick Leave and Compensatory Time" report issued by the Finance Department at the beginning of the fiscal year during which payable sick leave is earned. - 20 - Annual sick leave payoffs under this section for employees with less than ten (10) years of service shall be made according to the following schedule: Sick Leave Days Used In the Fiscal Year Sick Leave Days Payable At Fiscal Year End 2 or less 3 4 5 6 7 8 or more 6 5 4 3 2 1 o Annual sick leave payoffs under this Section for employees with ten (10) or more years of service shall be made according to the following schedule, providing there are enough sick days accrued in the employee's sick leave bank to cover the payoff described below: Sick Leave Days Used In the Fiscal Year Sick 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 time off not appropriately scheduled in advance will disqualify an employee from eligibility for payment under this Section. Sick leave for which payoff is received shall be considered uusedu in that it will not be added to the "bankll (or if added to the "bankll prior to the payoff date shall be removed from the "bank~). sick leave payoffs under this Section shall be made by separate check by the end of July following the fiscal year in which the payable sick leave was earned. For the purposes of this Section, sick leave days subj ect to payoff at the end of the fiscal year - 21 - shall be paid on the basis of eight (8) hours pay, at the employee's base salary rate of pay, for each sick leave day eligible for payoff. B. Program II - The employee has no option for pay for unused slck leave and "banks" unused sick leave with no limit or maximum accumulation. - 22 - ARTICLE IV: LEAVES 4.01 Paid Holidays Employees covered here~n shall receive paid holidays as provided below: New Year's Day - January 1 Martin Luther King's Birthday - Third Monday in January Lincoln's Birthday - February 12 Washington's Birthday - Third Monday in February Memorial Day - Last Monday in May Independence Day - July 4 Labor Day - First Monday in September Thanksgiving Day - Fourth Thursday in November The Friday Following Thanksgiving Day The Half-Day Immediately Before Christmas Day Christmas Day - December 25 The Half-Day Immediately Before New Year's Day One Floating Holiday All Other Holidays Declared by the city council A floating holiday becomes available at the beginning of each fiscal year and must be taken before the end of that fiscal year. A floating holiday not taken by the end of the fiscal year may be paid to the employee if the employee enters the day on his/her final timecard for the fiscal year. If the employee elects to be paid for the floating holiday at the end of the fiscal year, he/she will be paid eight (B) hours of pay at the employee's base salary rate of pay. Failure to take the floating holiday or to put the holiday on the last timecard for the fiscal year shall constitute a forfeiture by the employee. Whenever any day listed herein as a paid holiday falls upon the first or second day off of any employee who has two (2) consecutive days off, the day preced1ng shall be deemed the holiday if it falls on the first day off, and the day fOllowing shall be deemed the holiday if it falls on the second day off in lieu of the day listed. Whenever any day listed herein as a paid holiday falls upon any day off of an employee who does not have two (2) consecutive days off, the following day shall be deemed the holiday for such employee. Employees in departments or divisions observing different holiday schedules shall, in lieu of holidays listed above, receive holidays enjoyed by other operating employees in that department or division, provided, however, that the same number of holidays [twelve (l2)] shall be observed. - 23 - 4.02 Vacation Leave Employees covered herein shall accrue vacation leave with pay on the following basis: A. FOllowing completion of the first six (6) calendar months of continuous service, six (6) working days. B. Thereafter, up to and including five (5) years of service, one (1) working day completed calendar month of service. completed for each c. Thereafter, up to and including ten (10) completed years of service, one and one-quarter (1.25) working days for each completed calendar month of service. D. Thereafter, up to and including fifteen (l5) completed years of service, one and one-half (1.5) working days for each completed calendar month of service. E. Upon completion of fifteen (15) years of service and thereafter, one and three-quarters (1.75) working days for each completed calendar month of service. F. Employees are expected to take their vacation each year. An employee who has accrued vacation to the maximums prescribed herein may be required to take vacation leave in order to reduce the accumulation balance. The scheduling of vacation shall be according to department or division policies and contingent on the service needs of the department. If an employee is denied the time off required to maintain a vacation balance below the maximum allowed, the Department Head shall authorize payment to the employee for such vacation as would exceed the maximum accumulation limit. However, if the employee is scheduled to take vacation and fails or refuses to do so, he/she forfeits the excess accrual without compensation. G. Accrual of vacation leave shall not exceed forty (40) days. H. Except as provided herein, the administration or application of vacation leave provisions and the limitations on the accumulation, proportionate accumulation, scheduling and payment for such leave shall be as prescribed in the civil Service provisions of the Santa Monica Municipal Code. I. If an employee covered herein should receive a payoff for any unused accrued vacation days, said days shall be paid on the basis of eight (8) hours pay, at the employee's base salary rate of pay at - 24 - ';.03 the time of the payoff, for each vacation day eligible for payoff. sick Leave A. The use of sick leave shall be defined as in Section 21041 of the Santa Monica Municipal Code, hereby incorporated as if set forth in full herein, except as follows: sick leave shall be defined as absence from duty because of the employee's illness or off-the-job injury, exposure of the employee to contagious disease as evidenced by certification from an accepted medical authority, or medical or dental appointments of the employee which could not be scheduled during non-work hours, with proper advance notification to the Department Head. B. Employees covered herein shall accrue sick leave with pay on the following basis, provided that permanent part-time employees shall accrue sick leave in that proportion as the number of hours budgeted for the position bears to the full-time work week: (1) Following the completion of the first six (6) calendar months of continuous service, six (6) working days. (2) Thereafter, one (1) working day for each completed calendar month of service. c. The foregoing benefits are cumulative subject to the following restrictions: (l) No more than one-hundred-thirty (130) working days may be applied against sick leave for any one (1) illness. (2) Accrual of sick leave shall be limited to one- hundred-thirty (130) working days, unless the employee has selected the option of unlimited accumulation provided for in Section 3.11 (B) above. D. Any employee who is absent because of sickness or other physical disability shall notify his/her Department Head or other immediate superior officer as soon as possible but in any event in accordance with department rules and regulations. - 25 - 4.04 ';'.05 4.06 4.07 ~.08 Leave of Absence Without Pay A permanent employee covered herein may be granted a leave of absence without pay upon application approved by the Department Head and the City Manager. Such leave may not exceed one (1) year's time. Upon expiration of the leave, the employee shall be reinstated to the position held before the leave was granted. Such leave shall be granted only in those cases where an employee's record of service and qualifications make it desirable for the City to retain the employee's services even at the cost of some inconvenience to the City. Military Leave The city will observe the military leave requirements of state and Federal law. Workers' Compensation Leave Employees covered herein hired by the city on or before June 30, 1985, receiving disability payments under the Workers' Compensation Act of California shall receive the difference between the disability payments under the Act and full salary during the first ninety (90) days of such disability absence. Employees covered herein hired by the City on or after July l, 1985, shall be entitled to only those Workers' compensation benefits specified under state law and shall recelve no salary from the City during a leave for injuries covered by the Workers' Compensation Act. Jury Duty Any permanent employee covered herein, when duly called to serve on any jury and when unable to be excused therefrom, shall receive the regular pay less all jury fees received excluding mileage, for the time required to be spent under the jurisdiction of the court. Each employee receiving a notice to report for jury service shall immediately notify his/her immediate supervisor. Whenever daily jury duty scheduling permits, employees shall return to their regular daily job assignment to complete their regular daily work hours. Employees covered herein may be required to provide proof of jury service to receive jury duty pay. Bereavement Leave Bereavement leave of not more than five (5) working days with pay shall be provided for absence from duty due to the death of a member of the employee's immediate family, - 26 - 4.09 meaning spouse, child, brother, sister, parent, step-parent, step-brother, step-sister, parent-in-law, son-in-law, daughter-in-law, grandparent, grandchild or any relative living in the same household. Management Leave The city agrees to grant each permanent employee covered herein with less than fifteen (15) years of service, five (5) management days off with pay in partial recognition of their managerial and sensitive role in employer- employee relations. A s1xth (6th) management leave day shall be granted to all covered employees with fifteen (15) or more years of service. Management days shall be earned in increments effective at the beginning of each three (3) month period. For employees with less than fifteen (15) years of service, the fourth (4th) and fifth (5th) days shall be earned at the beginning of the last quarter of the contract year. For employees with fifteen (15) or more years of service, the third (3rd) and fourth (4th) days shall be earned at the beginning of the third (3rd) quarter of the contract year, and the fifth (5th) and sixth (6th) days shall be earned at the beginning of the last quarter of the contract year. Payment equivalent to the employee'S basic salary as of June 30 shall be payable to the employee, upon the request of the employee, on the first payday following the end of the fiscal year for any unused management days. Effective July 1, 1992, the first paragraph of this Section will be replaced with the following paragraphs, which shall be in effect for subsequent agreements between the parties unless the parties agree to change the terms contained therein. As partial recognition of the sensitive and demanding nature of the employer-employee relationship as regards employees covered here1n, the City hereby agrees to grant to each employee covered herein eight (8) management days off with pay to all such employees with less than fifteen (15) years of service. An additional management day [total of nine (9) days] shall be granted to all covered employees with fifteen (15) or more years of service. Management days shall be earned in increments with two (2) days available July 1 of each fiscal year i two (2) additional days available October 1 of each fiscal year; two (2) additional days available January 1 of each fiscal year; and two (2) additional days available April 1 of each fiscal year. Employees with nine (9) days shall earn the extra day as of April 1 of the fiscal year. Unused management leave days may be paid to the employee if he/she records them on the final timecard of each fiscal year or in such other pay periOd required by the Payroll unit of the finance Department. Unused cashable management leave days paid to the employee at - 27 - 4.10 the end of each fiscal year shall be paid on the basis of eight (8) hours pay, at the employee's base salary rate of pay, for each management leave day eligible for payoff. In addition to the cashable management leave days described above, each employee covered herein shall be entitled to two (2) non-cashable management leave days. The two (2) non-cashable management leavE days shall be earned in increments with one (1) day ava~~able July 1 of each fiscal year and one (1) additional day available January 1 of each fiscal year. These two (2) non-cashable management leave days shall not be accruable from year to year if not used in any given fiscal year, nor shall the employee be compensated for unused non-cashable management leave days at the end of the fiscal year. Any unused non-cashable management leave day(s) shall be forfeited at the end of the fiscal year. Parental Leave Employees who demonstrate that they have primary responsibility for the care of a new child shall be entitled to a leave of absence totaling four (4) months immediately following the child's birth or adoption and shall be returned to the same line-item position occupied prior to the leave upon its expiration. Paid vacation leave and sick leave, if applicable, as well as unpaid leave shall be counted toward the four (4) month total. Additional leave may be requested under the provisions of Section 4.04 of this MOD. Materni ty leave is not the same as parental leave and shall be administered in accordance with state and Federal law. - 28 - 5.01 ARTICLE V: WORKING CONDITIONS 5.02 Safety and Loss Prevention The City shall provide a reasonably safe and heal thy working enVl.ronment in accordance ''lith applicable State and Federal laws, rules and regulations. MTA agrees that where safety devices or items of protective equipment are required or furnished, their use shall be mandatory. Both parties recognize the role that management officials play in loss prevention and safety and agree that measures of loss prevention and safety are appropriate indicators of performance of an employee subject to this MOU. It is mutually agreed that a representative of MTA may attend meetings of the Administrative Safety Committee when, in the opinion of such representative, a safety hazard exists which should be considered by the Administrative Safety Committee. 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 (1) 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, in exceptional cases, based upon specific appraisal of the importance and difficulty of the work and the experl.ence and ability of the person to be employed, or of the incumbent, may authorize entrance salaries higher than the minimum, and special increases above the amount prescribed in the salary schedule for the class and length of service of the incumbent. In no event, however, shall the rate exceed the maximum rate for that class. Notwithstanding any provision contained herein, there will be no increase in wages of any kind as a result of an UNACCEPTABLE rating on the employee's prescribed periodic performance rating. There will be no subsequent increases in wages until the UNACCEPTABLE rating has been improved to at least the COMPETENT level. If overall performance is rated UNACCEPTABLE I the employee may be dismissed from service, and if two (2) consecutive performance ratings are marked UNACCEPTABLE, the employee shall be dismissed by appointing authority for inefficiency (SMMC Section 2104Al). Any overall rating in the IMPROVEMENT NEEDED category may delay the next - 29 - 5.03 T scheduled salary step increase at the discretion of the appointing authority. Such action shall remain in effect until the overall rating has been improved to at least the COMPETENT level. Employee Parking It is hereby agreed that the city will make every effort to maintain free parking as it presently exists for City employees at City facilities. The employees covered by this Agreement recognize that the city must comply with Regulation XV issued by the Air Quality Management District (AQMD) and the City'S Transportation Management Plan Ordinance. If the use of positive incentives does not result in the City meeting the compliance requirements of AQMD's Regulation XV or the City's Transportation Management Ordinance within one (1) year of the effective date of this Agreement, it is understood that the City can implement a charge for parking during the term of this Agreement in order to meet those requirements. In addition, if it should become necessary to charge for parking during the term of this Agreement in order to comply with any other state or Federal requirement regarding transportation management, the City can implement said charge. However, in no event shall the Ci ty implement such a charge for parking without meeting and conferring with MTA should any employee(s) represented by MTA be subject to such a charge. - 30 - ~ ARTICLE VI: EMPLOYER/EMPLOYEE RELATIONS 6.01 Payroll Deductions It is mutually understood and agreed that the City willi subject to the provisions of Ordinance No. 80l (CCS) and during the term of this MOUI deduct monthly and remit to the office or officer designated in the employee payroll deduction authorization Recognized Employee Organization dues, credl.t union investments or payments, health and hospitalization insurance premiums! and life and accident insurance preml.ums. Any or all of such payroll deductions are subject to termination by the City Manager upon twenty-four (24) hours notice for failure to comply with the provisions of this MOU. 6.02 Reasonable Notice It is mutually understood and agreed that a copy of the City Councilor Personnel Board agenda for each meeting mailed, by U.S. Mail, to the authorized representative of MTA shall constitute reasonable written notice, and notice of an opportunity to meet with such agency, on all matters within the scope of representation upon which the City Councilor Personnel Board may act. 6.03 Grievance and Complaint Policy A grievance lS a complaint by one (1) or more employees concerning the application or interpretation of the MOG, ordinances, resolutions, policies, practices or procedures affecting the employee's wages I hours and/or working condl.tions provlded! however, that grievances regarding disciplinary actions must be lodged by the employee being disciplined and that appeals arising from suspensions, demotions and removals shall be subject to the procedures outlined in Section 2106B et seg. of the Santa Monica Municipal Code, and that complaints regarding performance evaluations shall be subject to the procedures contained in Section 2104A of the Municipal Code. The City agrees that employees shall be afforded all due process rights provided in applicable law. The MTA agrees the rights of probationary employees are limited to those provided under the Santa Monica Municipal Code or City Charter. step 1. The aggrieved employee (s) shall meet ""ith the l.mmediate supervisor regarding the grlevancel which must be stated In writing, specifically cl.ting the MOU provisl.on, ordinance, - 31 - step 2. step 3. step 4. '\ resolution, rule, policy, practice or procedure that is the subject of the grievance and the circumstances giving r~se to the grievance within thirty (30) days of the event giving rise to the grievance. If the grievance is not resolved by the end of the employee's third (3rd) regularly scheduled day following the day on which presentation of the grievance to the immediate supervisor occurred, the employee may, within five (5) regularly scheduled days, thereafter appeal to the second level supervisor, if any. If the grievance is not resolved by the end of the employee's fifth (5th) regularly scheduled day following presentation of the grievance to the second level supervisor, if any, the employee may, within five (5) regularly scheduled days, appeal to the Department Head. The Department Head shall meet with the employee and the employee's representative to attempt to resolve the grievance. If the grievance is not resolved by the end of the employee's tenth (lOth) regularly scheduled day following presentation of the grievance to the Department Head, the employee may, within five (5) days, appeal to the Director of Personnel, who will investigate the grievance and make recommendations to the City Hanager, whose dec~sion shall be final. The decision of the City Manager shall be issued no later than the end of the thirtieth (30th) day following presentation of the grievance by the Director of Personnel. It is mutually understood and agreed that: A. All time periods in this Section may be extended by mutual consent of the employee and the management representative involved. B. A grievance shall be considered untimely if not presented by the employee or the MTA within thirty (30) days of the incident giving rise to the grievance or within thirty (30) days of its effect upon the employee in those instances \vhere it is shown that the employee could not reasonably have known of the grievable action. C. Employees shall have the right to be represented in grievance matters in the following manner: 1. Employees shall have the right to represent themselves individually in grievance matters. - 32 - , .~ 2. Employees may designate department or of MTA to grievance matters at steps of the grlevance 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 representative to represent them in steps three (3) and four (4) of the grievance process. 4. For the purposes of this section, "days" shall mean regularly scheduled work days of the employees in the affected department or division. 5. Reasonable time off without loss of payor benefits shall be given to a grievant or MTA grievance representative to investigate or process grievances, and to witnesses in any grievance hearing or meeting held during working hours. Before performing any grievance work, MTA representatives, the grievant or witness shall obta1n permission from the immediate supervisor and shall report back to work when the grievance work is completed. Neither the grievant nor representative nor witness shall interrupt or leave work if the supervisor determines that such interruption or absence will unduly interfere with the work of the employee. However, if the supervisor denies such time off when requested, time off must be granted within twenty-four (24) hours of such request. D. An employee who has initiated a grievance, or assisted another employee in initiating and/or processing a grievance, shall not in any 'day be coerced, lntimidated or discriminated against. - 33 - -' "). IN WITNESS WHEREOF, the parties hereto have Memorandum of Cnderstanding to be executed this t 1991. caused this day of r'~AGEMENT TEM1 ASSOCIATES Cralg Perkins President Ron Fuchiwaki Janet Shelton APPROVED AS TO FORM: {~'t '-"'. ~ Robert H. Myers ~ city Attorney ---., - 34 - 11ANAGEMENT OFFICIALS CITY OF SANTA MONICA John Jalili City Hanager .- ~ EXHIBIT A Classifications subject to the MOU shall be as follows: Accounting Manager Administrative Services Manager Administratlve Services Officer Admin~strative Water Engineer Airport Operations and Facilities superintendent Assistant Building Officer Assistant City Clerk Assistant City Librarian Assistant Director of Cultural and Recreational Services Assistant Director of Transportation Budget Coordinator Cable T.V. Manager Cemetery Superintendent city Engineer city Parking and Traffic Engineer Civic Auditorium Manager Collections Manager Community and Neighborhood Services Manager Cultural Arts Administrator Economic Development Manager Electrical Facilit~es Superintendent Fleet Maintenance superintendent Housing Program Manager Maintenance Manager Park Superintendent Personnel Operations Manager Pier Manager Public Facilities Maintenance Superi~tendent Purchasing Agent Recreation Superintendent Recycling Coordinator Revenue Manager/City Treasurer Solid Waste Management Superintendent Street Maintenance Superintendent systems Development Manager Technical Services Manager Traffic Operations superintendent Transit Operations Supervisor Transportation Maintenance Manager Transportation Maintenance Superintendent utilities Manager Water and Waste Water Superintendent Water Production Treatment Superintendent - 35 -