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HomeMy WebLinkAboutReso 53-17 Approving SEIU MOU 2017-20_fully executedRESOLUTION NO. 53-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MORRO BAY AND THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU), LOCAL 620, FOR THE PERIOD OF JULY 1, 2017 THROUGH JUNE 30, 2020 THE CITY COUNCIL Morro Bay, California WHEREAS, the City of Morro Bay ("City") has, and continues to recognize, the Service Employees International Union ("SEIU"), Local 620, as the sole exclusive bargaining agent for the City's miscellaneous employees, for all matters concerning wages, hours and working conditions; and WHEREAS, the current Memorandum of Understanding between the City and SEIU Local 620 ("SEIU MOU 2016-2017"), which was duly approved by the City Council on August 23, 2016, was set to expire on June 30, 2017; and WHEREAS, prior to the June 30, 2017 expiration of the SEIU MOU 2016-2017, the City and SEIU Local 620 reached an agreement extending the term of the SEIU MOU 2016-2017 by one year and providing a 2% cost of living adjustment ("COLA") for Fiscal Year 2017-18, and thereafter jointly prepared and executed an Amendment No. 1 to the SEIU MOU 2016-2017 ("First Amendment"), which was ratified by the SEIU on June 21, 2017 and approved by the City Council by Resolution No. 38-17 on June 27, 2017, and which extended the SEIU MOU 2016- 2017 to June 30, 2018; and WHEREAS, the City and SEIU Local 620 have continued to negotiate a three-year agreement for the period of July 1, 2017 through June 30, 2020, with two percent (2%) COLAs each year contingent upon the City meeting specified revenue thresholds; and WHEREAS, the City labor relations representatives and SEIU Local 620 representatives successfully met and conferred to negotiate the three-year MOU between the parties, pursuant to both the Meyers-Milias-Brown Act ("MMBA") (Gov't Code Section 3500-3511) and the City's Employer -Employee Relations Resolution, Resolution No. 08-17, and have jointly prepared and executed the attached successor MOU between the City and SEIU, for the period July 1, 2017 through, and including, June 30, 2020 ("SEIU MOU 2017-2020"), which was ratified by the SEIU on August 30, 2017; and WHEREAS, the SEIU MOU 2017-2020 is subject to City Council acceptance and approval, which is made a part hereof by this reference; and WHEREAS, once approved by the City Council, the SEIU MOU 2017-2020 shall become a binding agreement between the City and SEIU Local 620. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORR30 BAY, CALIFORNIA, AS FOLLOI/VS: Section 1. City Council Resolution No. 38-17, adopting the First Amendment, is hereby rescinded and replaced by this resolution. Section 2. The City Council approves the successor MOU between the City and SEIU for the period of July 1, 2017 through, and including, ,tune 30, 2020, a copy of which is attached hereto as Exhibit 1. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 261 day of September 2017, by the following vote: AYES: Irons, Davis, Headding, Makowetski, McPherson NOES: None ABSENT: None ABSTAIN: None JA L. IRONS, Mayor ATTEST: Cc DANA SWANSON, City Clerk MEMORANDUM OF UNDERSTANDING BETWEEN THE MORRO BAY SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL NO. 620 AND THE CITY OF MORRO BAY JULY 19 2017 - JUNE 309 2020 Table of Contents ARTICLE1 -PURPOSE .............................................................................................................................................. 1 ARTICLE 2 - MANAGEMENT.................................................................................................................................. 1 ARTICLE 3 - RECOGNITION....................................................................................................................................3 ARTICLE4 - UNION BUSINESS...............................................................................................................................5 ARTICLE 5 - AUTHORIZED AGENTS.....................................................................................................................6 ARTICLE 6 - UNION SECURITY AND WITHHOLDING OF UNION DUES/FEES.............................................7 ARTICLE7 - TERM.....................................................................................................................................................9 ARTICLE8 - RENEGOTIATIONS.............................................................................................................................9 ARTICLE 9 - ANTI-DISCRIMINATION....................................................................................................................9 ARTICLE 10 -WORK SCHEDULE............................................................................................................................9 ARTICLE 11 - VACATION LEAVE......................................................................................................................... 11 ARTICLE12 - HOLIDAYS............................................................_.........................................................................12 ARTICLE13 - SICK LEAVE.....................................................................................................................................13 ARTICLE 14 - RETIREMENT BENEFITS...............................................................................................................14 ARTICLE 15 - HEALTH BENEFITS........................................................................................................................16 ARTICLE 16 - EDUCATION INCENTIVES............................................................................................................18 ARTICLE 17 - WORK UNIFORMS..........................................................................................................................18 ARTICLE 18 - WAGES AND INCENTIVES...........................................................................................................19 ARTICLE 19 - SPECIAL PAY PRACTICES............................................................................................................23 ARTICLE 20 - PROBATION.................................................................................................................................... 25 ARTICLE 21 - GRIEVANCE PROCEDURE............................................................................................................25 ARTICLE 22 -NO STRIKE, NO LOCK-OUT..........................................................................................................28 ARTICLE 23 - FULL UNDERSTANDING, MODIFICATION, WAIVER..............................................................28 ARTICLE24 - SEVERABILITY...............................................................................................................................29 ARTICLE 25 - JOINT DRAFTING..........................................................................................................................288 ARTICLE 26 - CITY COUNCIL APPROVAL..........................................................................................................29 SEIU MOU 2017-20 Page iii MEMORANDUM OF UNDERSTANDING BETWEEN SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL NO. 620 AND THE CITY OF MORRO BAY JULY 2017 - JUNE 2020 ARTICLE 1— PURPOSE 1.1 WHEREAS, the City of Morro Bay is a municipal corporation existing under the laws of the State of California as a general law city; and 1.2 WHEREAS, the City of Morro Bay is limited, insofar as funds are concerned, because of a fixed tax rate, and in structure because it is a public entity rather than a profit making business; and 1.3 WHEREAS; Service Employees International Union Local No. 620 and the City of Morro Bay recognize that the mission and the purpose of the City is to provide for high- quality and economical municipal services and facilities to the residents of the City of Morro Bay. 1.4 THEREFORE, this Memorandum of Understanding ("MOU") is entered into as of July 1, 2017, between the City of Morro Bay, hereafter called the "CITY," and Service Employees International Union Local No. 620, hereafter called the "UNION." 1.5 It is the intent and purpose of this MOU to assure sound and mutually beneficial working and economic relations and conditions between the parties hereto; to provide for an orderly and peaceable method and manner of resolving any differences which may arise; and to negotiate any misunderstanding, which could arise, and to set forth, herein, the basic and full agreement between the parties, concerning the pay, wages, hours of employment, and other terms and conditions of employment. ARTICLE 2 — MANAGEMENT 2.1 In order to ensure that the CITY shall continue to carry out its municipal functions, programs, and responsibilities to the public imposed by law, and to maintain efficient public service for the citizens of Morro Bay, the CITY continues to reserve, and retain solely and exclusively, all management rights, regardless of the frequency of use, including those rights and responsibilities set forth by law, and those CITY rights set forth in the CITY's Personnel Rules and Regulations, and including, but not limited, to the following: 2.1.1 To manage the CITY, determine policies and procedures, and the right to manage the affairs of all Departments. SEIU MOU 2017-20 Page 1 4;J 2.1.2 To determine the existence, or nonexistence, of facts that are the basis of the management decision in compliance with State law. 2.1.3 To determine the necessity, organization, implementation, and termination of any service or activity conducted by the CITY or other government jurisdiction, and to expand or diminish services. 2.1.4 To direct, supervise, recruit, select, hire, evaluate, promote, transfer, discipline, discharge, terminate, demote, reduce, suspend, reprimand, withhold salary increases and benefits for disciplinary reasons, or otherwise discipline employees, in accordance with Department or CITY Rules, Regulations, or Ordinances. 2.1.5 To determine the nature, manner, means, extent, type, time, quantity, quality, technology, standard, and level of services to be provided to the public. 2.1.6 To require performance of other public services, not specifically stated herein, in the event of emergency or disaster, as deemed necessary by the CITY. 2.1.7 To lay off employees because of lack of work or funds or under conditions where continued work would be inefficient or nonproductive or not cost effective, as determined by the CITY. 2.1.8 To determine and/or change facilities, methods, technology, equipment, operations to be performed, organization structure, and allocate or assign work by which the CITY operations and services are to be conducted. 2.1.9 To determine method(s) of financing. 2.1.10 To plan, determine, and manage Departments' budget, which includes, but is not limited to, changes in the number of locations and types of operations, processes and materials to be used in carrying out all functions, and the right to contract or subcontract any work or operations. 2.1.11 To determine the size and composition of the work force, assign work to employees of the CITY, in accordance with requirements determined by the CITY, and to establish and require compliance to work hours and changes to work hours, work schedules, including call back, standby, and overtime, and other work assignments, except as otherwise limited by this MOU, or subsequent MOUS. 2.1.12 To establish and modify goals and objectives, related to productivity and nerfnrmanre programs and, standards, including hilt not limited to Mlallt\i And quantity, and required compliance therewith. SEIU MOU 2017-20 Page 2 2.1.13 To determine qualifications, skills, abilities, knowledge, selection procedures and standards, job classification, job specifications, and to reallocate and reclassify employees, in accordance with division and/or CITY Rules and Regulations. 2.1.14 To determine the issues of public policy and the overall goals and objectives of the CITY, and to take necessary action to achieve the goals and objectives of the CITY. 2.1.15 To hire, transfer intra- or inter -Department, promote, reduce in rank, demote, reallocate, terminate, and take other personnel action for non -disciplinary reasons, in accordance with Department and/or CITY Rules, Regulations and Ordinances. 2.1.15 To determine policies, procedures and standards for recruiting, selecting, training and promoting employees. 2.1.17 To establish, implement, and/or modify Rules and Regulations, policies, and procedures related to productivity, performance, efficiency, personal appearance standards, code of ethics and conduct, safety, health, and order, and to require compliance therewith. 2.1.1 S To maintain order and efficiency in facilities and operation. 2.1.19 To restrict the activity of an employee organization on CITY facilities, except as set forth in this MOU. 2.1.20 To take any and all necessary steps and actions to carry out the service requirements and mission of the CITY, in emergencies or any other time deemed necessary by the CITY, and not specified above. 2.2 Nothing herein is meant to diminish CITY rights provided by the Government Code. 2.3 Authority of Third party Neutral — Management lights All management rights, powers, authority, and functions, whether heretofore or hereinafter exercised, shall remain vested exclusively with the CITY. No third party neutral shall have the authority to diminish any of the management rights that are included in this MDU. 2.4 Nothing herein is meant to diminish employee rights provided by the Government Code. ARTICLE 3 — RECOGNITION 3.1 Pursuant to Resolution No. 08-17, the Employer -Employee Relations Resolution of the City of Marro Bay and applicable state law, Service Employees International Union Local 620 was designated by the City of Morro Bay City Council as the exclusive representative SEIU MOU 2017-20 Page 3 of City employees in the Miscellaneous Employees Unit (hereafter "UNIT"). The UNIT is comprised of the following classifications: Account Clerk I Account Clerk II Account Clerk III Administrative Technician Administrative Utilities Technician Assistant Civil Engineer Assistant Planner Associate Civil Engineer Associate Planner Building Inspector Building Inspector/Plans Examiner Consolidated Maintenance Worker I Consolidated Maintenance Worker II Consolidated Maintenance Worker III Consolidated Maintenance Leadworker Consolidated Maintenance Field Supervisor Engineering Technician I Engineering Technician II Engineering Technician III Engineering Technician IV Harbor Business Coordinator Harbor Patrol Officer Harbor Patrol Officer Supervisor Housing Programs Coordinator Mechanic Office Assistant II Office Assistant III Office Assistant IV Permit Technician Permit Technician - Certified Recreation Supervisor - Sports Recreation Supervisor — Youth Recreation Coordinator Support Services Technician Wastewater Systems Operator In -Training Wastewater Systems Operator I Wastewater Systems Operator II Wastewater Systems Operator III SEIU MOU 2017-20 Page 4 Wastewater Systems Leadworker Wastewater Systems Supervisor Wastewater Treatment Plant Operator In -Training Wastewater Treatment Plant Operator I Wastewater Treatment Plant Operator II Wastewater Treatment Plant Operator II/Lab Analyst Wastewater Treatment Plant Leadworker Wastewater Treatment Plant Supervisor Wastewater Collection System Operator I Wastewater Collection System Operator II Wastewater Collection System Operator III Wastewater Collection System Leadworker Wastewater Collection System Supervisor Water System Operator I Water System Operator I1 Water System Operator III Water System Supervisor The term "employee" or "employees," as used herein, shall refer only to the foregoing classifications. 3.2 Employees, working on a regular basis in a classified position, but less than full-time, shall receive vacation and sick leave accruals on a pro -rated basis, commensurate with hours worked. Effective January 1, 1998, all benefits for new hires, including insurance benefits, will be allocated on a pro -rated basis, commensurate with hours worked. 3.3 Electronic Deposit: All Employees, hired after the effective date of this contract, shall receive their pay by electronic methods. New hires must present account information for a checking or a savings account with an ACH-member financial institution. ARTICLE 4 - UNION BUSINESS 4.1 Employee representatives, designated by the UNION, shall be granted time off, without lass of pay, to attend "meet and confer" sessions with the City Manager, and/or his/her designee, on subjects within the scope of representation, when such meetings are scheduled during regular working hours. Should such meeting extend beyond an employee representative's regular working hours, the employee representative shall be paid for only the regular working hours. It is understood that this "time -off provision" shall only apply to a maximum of three (3) employees attending any one meeting between CITY and UNION. Where exceptional circumstances warrant, the City Manager may approve the attendance at such meetings of additional employee representatives. The UNION shall, whenever practicable, submit the SEIU MOU 2017-20 Page 5 names of all employee representatives to the City Manager, or designee, at least two working days in advance of such meetings. Provided further: 1) that no employee representative shall leave his/her duty or work station or assignment without specific approval of the department head or other authorized CITY management official; and 2) that any such meeting is subject to scheduling by CITY management and UNION, in a manner consistent with operating needs and work schedules. 4.2 Nothing provided herein shall limit or restrict CITY management and UNION from scheduling such meetings before or after regular CITY or work hours. 4.3 Off-duty employees will not be paid for attending meet and confer sessions, nor will over- time be paid for same. 4.4 If the UNION and the CITY are actively meeting and conferring (e.g. after a successor letter has been delivered to the CITY to initiate conferring), then pursuant to Government Code Section 3505.3, a reasonable number of UNION representatives shall be permitted paid release time from regular working hours upon reasonable notification to the CITY as follows: a. When formally meeting and conferring with representatives of the CITY on matters within the scope of representation; b. When testifying or appearing as the designated representative of UNION in conferences, hearings, or other proceedings before the board, or an agent thereof, in matters relating to a charge filed by the UNION against the CITY or by the CITY against the UNION; C. When testifying or appearing as the designated representative of the UNION in matters before a personnel or merit commission. d. For the purposes of this section, "designated representative" means an officer of the UNION or a member serving in proxy of the UNION. 4.5 The UNION will be permitted to retain and use bulletin boards for member informational purposes at the following locations: 1) City Hall 2) Public Works/Community Development 3) Recreation Services 4) Water and Collections Department 5) Wastewater Treatment Plant 6) Fire Department and 7) Harbor Department. ARTICLE 5 - AUTHORIZED AGENTS For the purpose of administering the terms and provisions of this MOU : 5.1 Management's principal authorized agent shall be the City Manager, or his/her duly authorized representative (address: 595 Harbor Street, Morro Bay, CA 93442, telephone SEIU MOU 2017-20 Page 6 (805) 772-6201), except where a particular management representative is specifically designated in the MOU. 5.2 The UNIT's principal authorized representative shall be: Service Employees International Union Local 620 (114 Vine Street, Santa Maria, CA 93454 (805) 963-0601). 5.3 The UNION shall furnish the CITY's City Manager with a written list, identifying by name and work location, up to three stewards and one chief steward. 5.4 UNION stewards shall be authorized, when participating in the investigation and processing of a grievance, to take a reasonable amount of CITY ---time, without loss of compensation or benefits, to perform these duties. 5.5 UNION stewards shall be selected in accordance with current SEIU written policy on file with the CITY Human Resources Office. ARTICLE 6 — UNION SECURITY and WITHHOLDING OF UNION DUES/FEES 6.1 "Maintenance of Membership" All UNIT employees who, on the effective date of this MOU, are members of SEIU Local 620, and all such employees, who thereafter voluntarily become members of Local 620, shall maintain their membership in Local 620, subject to the right to resign membership during the period commencing thirty days prior to June 30 of each year of this MOU. 6.2 Agency Shop Pursuant to UNION's initiation, allowed by an amendment to the Meyers-Milias-Brown Act, the CITY and the UNION will abide by the following provisions, as they relate to an agency shop. Agency Shop, as defined under Meyers-Milias-Brwn, means "an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization, or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization." CITY recognizes that UNION has petitioned for ,and a majority of employees have cast ballots in a secret ballot election in favor of, agency shop for this bargaining UNIT. ZD The United States Supreme Court has decided that Unions may not charge non-members for expenses unrelated to the actual representation of the employees in the bargaining T TNTT such as political contributions, nraani-Ana and member-nniv hPne_fi_tc Employees, who question whether the amount of the UNION's Agency Fee contains unlawful charges, may file a written objection with the UNION to the Agency Fee, and if successful, have their Agency Fee reduced to cover only the lawfully -chargeable amount. Any costs related to this objection process will be borne by the UNION. SEIU MOU 2017-20 Page 7 6.3 Conscientious Objection Any employee, who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations, shall not be required to join or financially support any public employee organization as a condition of employment. Such employees shall be required to, in lieu of periodic dues, initiation fees, or agency fees, pay sums, equal to the dues, initiation fees, or agency fees, to a nonreligious, non -labor charitable fund, exempt from taxation under Section 501(C)(3) of the Internal Revenue Code, chosen by the employee from the following; Hospice, CASA, or United Way for the purpose of payroll deductions, Proof of payments shall be made on a monthly basis to the CITY, as a condition of continued exemption from the requirement of financial support to the UNION. 6.4 Covered employees shall execute written authorization for either UNION dues deductions, the agency fee, or, if eligible, the charitable contribution. In the absence of a written authorization, the CITY shall deduct the agency fee from the employees' paycheck, pursuant to the Meyers»Milian-Brown Act (Gov't Code Sections 3500-3511 et.seq.). Section 3502.5. The CITY agrees to promptly remit, to the UNION, all monies deducted, accompanied by an "Agency Fee Deduction Report," to include the names and amounts of the deductions in the same manner and timeframes as the current provision of the dues deduction reports. 6.5 Rescission of Agency Shop This agency shop provision may be rescinded by a majority vote of all the employees in the UNIT covered by the MOU, provided that: 6.5.1 A request for such a vote is supported by a petition of at least 30% of the employees in the bargaining UNIT; 6.5.2 The vote is by secret ballot; 6.5.3 The vote may be taken at any time during the term of the MOU, but in no event shall there be more than one vote taken during each contract year. 6.6 Applicability An agency shop arrangement shall not apply to management, confidential, or supervisory employees. 6.7 Reporting Requirement The UNION shall keep an adequate itemized record of its financial transactions, and shall make available annually, to the CITY and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report, thereof, in the form of a balance sheet and an operating statement, certified as to accuracy by its president and treasurer or corresponding principal officer, a certified public accountant, or as otherwise required by law. SEW MOU 2017-20 Page 8 6.8 Indemnification The UNION shall indemnify, and hold the CITY harmless, against any liability arising from any claims, demands, or other action relating to the CITY's compliance with the agency shop obligation. The UNION shall comply with all statutory and legal requirements, with respect to agency shop. ARTICLE 7 - TERM Except as otherwise specifically provided herein, the term of this MOU shall be from Rily 1, 2017, through June 30, 2020. ARTICLE 8 - RENEGOTIIATIONS 8.1 In the event either party wants to renegotiate a successor MOU, such party shall serve, upon the other during the period December 1, 2019 to January 31, 2020, its written request to begin negotiations, as well as its full and entire written proposals amending this MOU. 8.2 The parties agree that, except by mutual agreement, no new subjects may be introduced into the process after the third negotiations meeting. 8.3 Upon receipt of such written notice and proposals, negotiations shall begin no later than March 15, 2020. ARTICLE 9 - ANTI -DISCRIMINATION The CITY and UNION mutually agree they will not discriminate against employees for the exercise of their rights under the State of California Government Code Section 3502. ARTICLE 10 - WORK SCHEDULE This ARTICLE is intended to define the normal hours of work, and shall not be construed as a guarantee of work per day or per week, or of days of work per week. 10.1 Workday The normal workday shall be eight hours of work in a 24 consecutive hour period, except in cases of emergencies. Alternative work schedules can be implemented, upon approval of the City Manager, and providing they are not in violation of the Fair Labor Standards Act (FLSA) regulations. The parties agree herewith to retain the option to re -open discussion of this Section 10. 1, with respect to UNION's proposal for a 9180 work schedule for non -safety employees, where all non -safety employees working locations would be closed one day every other week to accommodate such modified schedules. SEIU MOU 2017-20 Page 9 10.2 Work Shift Employees shall be scheduled to work on regular work shifts having regular starting and quitting times. Except for emergencies, employees' work shifts shall not be changed without 24-hour prior notice to the employee. Call -out or overtime does not constitute as change in work shift. 10.3 Work Week The normal workweek shall be five workdays and two consecutive days of rest in a seven- day period, beginning Saturday, 12:00 a.m., and ending seven days later on Friday night at 11:59 p.m., except in cases of emergencies, or at the specific request of an employee and approval of department head. Nothing herein shall be construed to eliminate currently established irregular work schedules. 10.4 Overtime Compensation 10.4.1 All work required by the CITY, and actually performed beyond 40 hours worked in a workweek, is defined as FLSA overtime. FLSA overtime shall be compensated at one and one-half times the employee's regular rate of pay, as defined by FLSA. 14.4.2 Designated CITY holidays shall be considered as time worked, for purposes of computing overtime, for personnel working a Monday through Friday, eight hours a day, schedule with Saturday and Sunday as regular days off. Employees working other schedules will accrue eight hours holiday time, and if working on the CITY designated holiday, be paid at the rate of one and one-half times the employee's regular rate of pay, as defined by FLSA. Effective upon the ratification of this contract, vacation hours used shall also be considered as time worked, for overtime calculation purposes. 10.4.3 There shall be no double compensation for the same hours of work, nor any "pyramiding" of overtime. 10.5 Compensatory Time Off (CTO).- 10.5.1 CTO): 10.5.1 At the employee's option, CTO may be taken in lieu of payment for overtime. 10.5.2 CTD may be accrued. An employee's CTO balance shall indicate the amount of CTO available for employee's use. For example, if an employee works two hours of FLSA overtime, and elects to accrue GTO, the employee's CTO balance shall indicate three hours. 10.5.3 An employee's CTD balance shall not exceed a maximum of 60 hours. If overtime is earned that would exceed this limit, the excess shall be paid in cash. SEIU MOU 2017-20 Page 10 10.5.4 All CTO, requested by an employee, must be approved in advance by the employee's Department Head. 10.5.5 Employees, separating from the CITY, are entitled to pay for accumulated CTO at their current base rate of pay. 10.6 Emergencies 10.6.1 Nothing herein shall be construed to limit or restrict the authority of management to make temporary assignments to different or additional locations, shifts, or duties, for the purpose of meeting an emergency. Such emergency assignments shall not extend beyond the period of said emergency. 10.6.2 Short—staffing, caused solely by absences due to employees taking approved paid leave, shall not be considered an emergency. 10.7 Shift Rotation Shift rotation shall coincide with the first day of a pay period. 10.$ Breaks As a general practice, employees shall be permitted to take a minimum fifteen (15) minute paid rest/hydration/exercise break for every four (4) hours worked. In addition, employees shall be permitted to take a minimum thirty (30) minute and maximum sixty (60) minute unpaid meal break for up to ten (10) hours worked. The scheduling of these breaks shall be subject to departmental policy and will require approval of ars employee's supervisor or manager. The inability of a department to schedule or allow such breaks or of an employee to take such breaks shall not give rise to any right to or claim for compensation and/or monetary damages of any kind. ARTICLE 11 - VACATION LEAVE NOTE: All leave time (vacation, sick leave, holiday, etc.) will be taken off on an hour -fox -hour basis, equaling employee actual time off, regardless of accumulation rates. 11.1 During the term of this MOU, paid vacation leave shall be earned at the following rate: Maximum Entitlement Service Years Days Hours 1 thru 2 10 SO 3 thru 4 11 SS 5 thru 6 12 96 7 thru 8 13 104 SEfU MOU 2017-20 Page 11 IN 9 thru 10 14 112 11 thru 12 15 120 13 thru 14 16 128 15 thru 16 17 136 17 thru 18 18 144 19 thru 20 19 152 21 or more 20 160 11.2 The standard for vacation time is eight hours equals one day. 11.3 Effective July 1, 2014, employees will be provided an option to convert up to 40 hours of vacation into compensation per fiscal year provided that at the time of the conversion request at least 20 hours of vacation time remains in the employee's vacation bank. Conversion may be requested throughout the fiscal year, with a minimum of 30 days' notice to payroll, and Department Head approval. 11.4 Maximum Accumulation It is recognized that long-standing accumulations of vacation time exist for some employees. In order to compensate employees for this unused vacation time, and reduce this liability for the CITY, CITY and UNION agree on the following policy: 11.4.1 CITY and UNION agree that the vacation cap to be in place for this UNIT will be 220 hours, to be achieved in the following manner-: 11.4.1.1 Unused vacation leave may be carried over into the calendar year 2008 and subsequent calendar years to a maximum of 220 hours. Employees exceeding the 220 -hour maximum, as of the pay period containing November I" will be paid off for vacation time that exceeds the 220 - hour maximum. Payment shall be computed based upon the employee's current base hourly rate of pay. Vacation pay out will occur in the first pay period occurring on or after December 111. 11.4.2 Employees, separating from the CITY, are entitled to pay for accumulated vacation based upon employee's current base hourly rate of pay. ARTICLE 12 - HOLIDAYS 12.1 For the purpose of this MOU, the following days are the holidays for the employees in this UNIT: New Year's Day January I Martin Luther King, Jr.'s, Day Yd Monday in January Lincoln's Birthday February 12th SEIU MOU 2017-20 Page 12 President's Day Memorial Day Independence Day Labor Day Veterans' Day Thanksgiving Day Day after Thanksgiving Day Christmas Day Two (2) Floating Holidays 3rd Monday in February Last Monday in May July 4h I" Monday in September November 11 `b 4'' Thursday in November Friday after Thanksgiving December 25h Varies 12.2 Holidays, falling on Saturday, shall be observed on the preceding Friday, and holidays, falling on Sunday, shall be observed on the following Monday, and shall be considered designated holidays for purposes of overtime. 12.3 One holiday equals eight hours. For those UNIT employees, participating in alternative work schedules, one holiday shall equal the number of hours the employee is scheduled to work on the day of the holiday. Accrued holiday time may be taken in less than eight- hour increments. 12.4 It is agreed that when a holiday is proclaimed by the Mayor of the CITY, then each employee shall be granted time -off in the same number of equivalent work hours. Such time -off shall be selected by the Department Head. 12.5 Employees may accumulate up to a maximum of 48 hours holiday time for holidays worked. Hours of holiday time, accumulated over 48 hours, will be paid off. When an employee terminates employment with the CITY, he/she shall receive pay for his/her current holiday balance up to a maximum of 48 hours at his/her current base hourly rate. 12.6 CITY's denial of requested holiday time off shall be neither arbitrary nor capricious. 12.7 Employees, who work on a CITY -designated holiday, shall have up to 10 hours banked, depending on scheduled hours, and also shall be paid one and one-half times their base hourly rate for the hours actually worked on the holiday. 12.8 The first payroll including July 1, each employee's bank will be credited with 16 hours floating holiday, regardless of actual work schedules. ARTICLE 13 - SICK LEAVE 13.1 During the term of this MOU, sick leave shall be earned at the rate of one eight-hour workday for each calendar month of service. Sick leave used shall be actual employee time off. For example, if an employee works four 10 -hour days per week and is off sick for one of the 10 hour days, 10 hours shall be deducted from employee's sick leave SEIU MOU 2017-20 Page 13 balance. There shall be no maximum to the amount of sick leave that an employee may accumulate. 13.2 Based on individual utilization of paid sick leave in the preceding calendar year, employee may convert unused accumulated sick leave into paid vacation leave once per calendar year, pursuant to the formula below: At least 160 accrued hours must remain in employee's sick leave bank for any employee to be eligible for conversion or for any conversion to be authorized. In addition, the right to convert, along with any conversion hours, does not carry over.or rollover from calendar year to calendar year; failure to request conversion in any calendar year eliminates the right to do so for that calendar year. 133 Upon the service retirement of an employee who has more than 10 years of service with the CITY, said employee shall be entitled to receive payment for up to 720 hours of Ms/her accrued sick leave at thirty percent (30%) of the employee's rate of pay as of the date of service retirement. Service retirement is defined as service retirement from both the CITY and the respective retirement system thereof. NOTE. Sick leave, converted to service credit for PERS purposes, cannot be compensated (converted to dollars). ARTICLE 14 - RETIREMENT BENEFITS 14,1 All employees will contribute the entire employee retirement contribution, which is currently: 1) classic members, Tier 1 - 8% Miscellaneous/9% Safety; classic members, Tier 2 - 7% Miscellaneous/9% Safety; or PEPRA members, Tier 3 — 6.25% Miscellaneous/i 1.5% Safety. 14.2 The CITY agrees to continue providing all CalPERS /Miscellaneous employees in this UNIT, who were hired prior to January 1, 2012, with the following CalPEAS retirement formula and optional benefits (existing employees promoted to another position within the CITY, will not be considered new hires, with respect to retirement formulas): SEIU MOU 2017-20 Page 14 Maximum Conversion Sick Leave Utilization Sick Leave to Vacation Leave 0 hours 96 hours 48 hours 0.25 to 8 hours 72 hours 36 hours 8.25 to 16 hours 48 hours 24 hours 16.25 to 25 hours 24 hours 12 hours Over 25 hours 0 fours 0 hours At least 160 accrued hours must remain in employee's sick leave bank for any employee to be eligible for conversion or for any conversion to be authorized. In addition, the right to convert, along with any conversion hours, does not carry over.or rollover from calendar year to calendar year; failure to request conversion in any calendar year eliminates the right to do so for that calendar year. 133 Upon the service retirement of an employee who has more than 10 years of service with the CITY, said employee shall be entitled to receive payment for up to 720 hours of Ms/her accrued sick leave at thirty percent (30%) of the employee's rate of pay as of the date of service retirement. Service retirement is defined as service retirement from both the CITY and the respective retirement system thereof. NOTE. Sick leave, converted to service credit for PERS purposes, cannot be compensated (converted to dollars). ARTICLE 14 - RETIREMENT BENEFITS 14,1 All employees will contribute the entire employee retirement contribution, which is currently: 1) classic members, Tier 1 - 8% Miscellaneous/9% Safety; classic members, Tier 2 - 7% Miscellaneous/9% Safety; or PEPRA members, Tier 3 — 6.25% Miscellaneous/i 1.5% Safety. 14.2 The CITY agrees to continue providing all CalPERS /Miscellaneous employees in this UNIT, who were hired prior to January 1, 2012, with the following CalPEAS retirement formula and optional benefits (existing employees promoted to another position within the CITY, will not be considered new hires, with respect to retirement formulas): SEIU MOU 2017-20 Page 14 14.2.1 2.7% �7a 55 formula (Section 21354.5) 14.2.2 Unused Sick Leave Credit Option (Section 2.0965) 14.2.3 Military Service Credit (Section 21024 & 21027) 14.2.4 Single Highest Year Final Compensation (Section 20042) 14.2.5 1959 Survivor Benefit, Level 4 (Section 21574) 14.2.6 Pre -Retirement Option 2W Death Benefit (Section 21548) 143 For Ca1PERS Miscellaneous employees, who were hired on or after January 1, 2012, but before January 1, 2013, and those hired on or after January 1, 2013, who meet the definition of classic member, pursuant to the California Public Employee's Pension Reform Act of 2013 (PEPRA), the CITY will provide the following Ca1PERS optional benefits: 14.3.1 2% cr 60 formula (benefit factor increases to 2.418% �7a 63+) (21353) 14.3.2 Unused Sick Leave Option (Section 20965) 14.3.3 Military Service Credit (Section 21024 & 21027) 14.3.4 Final Compensation Average 36 consecutive highest months (20037) 14.3.5 1959 Survivor Benefit, Level 4 (21574) 14.3.6 Pre -Retirement Option 2W Death Benefit (Section 21548) 14.4 Pursuant to the Califomia Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, employees hired, who meet the definition of new member under PEPRA, will be covered by following retirement formula and receive the following CAPERS optional benefits: 14.4.1 2% �7a 62 retirement formula (benefit factor increases to 2.5% @ 57+) 14.4.2 Final Compensation Average 36 consecutive highest months (20037) 14.4.3 Member contribution rate of fifty (50) percent of the expected normal cost rate (currently 6.25%) 14.4.4 Unused Sick Leave Credit (Section 20965) 14,45 Military Service Credit (Section 21024 and 21027) 14.4.6 1959 Survivor Benefit, Level 4 (21574) 14.4.7 Pre -Retirement Option 2W Death Benefit (Section 21548) 14.5 The. CITY agrees to continue providing CalPERS Safety employees (Harbor Officers reclassed to Safety 1011711998) in this UNIT, who were hired prior to September 17, 2011, with the following Ca1PERS retirement formula and optional benefits (existing employees, promoted to another position within the CITY, will not be considered new hires, with respect to retirement formulas): 14.5.1 3% [7a 50 plan (21362.2) 14,5.2 Unused Sick Leave Credit (Section 20965) 14.5.3 Military Service Credit (Section 21024 & 21027) 14.5.4 Highest Single Year Final Compensation (Section 20042) SEfU MDU 2017-20 Page 15 11 14.5,7 1959 Survivor Benefit, Level 4 (Section 21574) 14.5.8 Pre -Retirement Option 2W Death Benefit (Section 21548) 14.6 For Ca1PERS Safety employees (Harbor Patrol Officers, who were hired on or after September 17, 2011, and those hired on or after January 1, 2013, who meet the definition of classic member pursuant to the California Public Employees Pension Reform Act of 2013 (PEPRA), the CITY will provide the following CAPERS optional benefits: 14.6.1 3% @ 55 plan (Section 21363.1) 14.6.2 Unused Sick Leave Credit (Section 20965) 14.6.3 Military Service Credit (Section 21024) 14.6.4 Final Compensation 3 Year (20037) 14.6.5 1959 Survivor Benefit Level 4 (Section 21574) 14.6.6 4th Level Survivor Benefit (Section 21574) 14.6.7 Pre -Retirement Death Option 2W 14.7 Pursuant to the California Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, safety employees hired who meet the definition of new member under PEPRA, will be covered by the following retirement formula and optional CaIPERS benefits: 14.7.1 2.7% @ 57 retirement formula (Section 7522.25(d)) 14.7.2 Final Compensation Average 36 consecutive highest months (20037) 14.7.3 Member contribution rate of fifty (50) percent of the expected normal cost rate (currently 11.5%) 14.7.4 Unused Sick Leave Option (Section 20965) 14.7.5 Military Service Credit (Section 21024) 14.7.6 1959 Survivor Benefit Level 4 (Section 21574) 14.7.7 4ch Level Survivor Benefit (Section 21574) 14.7.8 Pre -Retirement Death Option 2W 14.8 City will contribute, on a 2:1 basis (i.e., employee contributes $2, and City contributes $1) with City maximum of $600.00 per employee in any calendar year, to an employee's deferred compensation 457 plan. ARTICLE 15 - HEALTH BENEFITS 15.1 Health Insurance 15.1.1 Employees of this UNIT shall participate in the CaIPERS medical insurance plans on a cafeteria style basis, with the CITY contributing the Ca1PERS minimum (currently $125/month) to the active employee's medical insurance, and $1.00/month, or the amount required by CaIPERS, to retiree medical insurance. Any costs in excess of these contribution rates shall be paid by the employee and retiree. SEIU MOU 2017-20 Page 16 15.1.2 For 2017, UNIT employees receive a cafeteria plan contribution (including the amount required by CalPERS in 15. 1.1 above) as follows: Employee only - up to $715/month or cost of insurance, whichever is less Employee + 1— up to $1,109/month or cost of insurance, whichever is less Employee + family - up to $1,421/month or cost of insurance, whichever is less For 2018, UNIT employees shall receive a cafeteria plan contribution (including the amount required by CaiPERS in 15. 1.1 above) as follows: Employee only - up to $715/month or cost of insurance, whichever is less Employee + 1 — up to $1,135/month or cost of insurance, whichever is less Employee + family - up to $1,460/month or cost of insurance, whichever is less 15.1.3 Effective January 1, 2009, cash -back was eliminated, except as provided herein. Employees, receiving cash -back in December 2008, shall continue to receive the same amount for the term of this MOU, except that if cash -back employees change the structure of their insurance (add dependents, delete dependents, drop insurance with the CITY, change carriers, etc.) cash -back is not an option. Cash -back will be eliminated for employees during the open enrollment period in 2012 for calendar year 2013, and in subsequent years, if said employees are required (because of eliminated plans) to change carrier. In the event an employee receiving cash -back is forced to make a plan change because the CITY changes plans and/or ceases to contract with PERS for insurance, that employee will maintain cash -back. 15.2 Dental, Life and Vision Insurance 15.2.1 Life Insurance is provided at $50,000 per employee. The following rates are effective January 1, 2017: CITY will pay the remaining premium for dental/life and vision. 15.3 Any coverage made available to future retirees beyond COBRA time requirements shall be paid for by the retiree. 15.4 The provisions of this ARTICLE shall be binding on the parties through the remainder of this MOU, and for the term of the MOU, which will be effective upon City Council approval. The parties agree herewith to re -open discussion with respect to this ARTICLE, for any changes to the 2019 and 2020 health rates. SEIU MOU 2017-20 Page 17 Vision Dental Life Totals City pays EE pays Employee only $ 8.86 $ 55.47 $8.15 $ 72.48 $ 69.55 $ 2.93 Employee+ 1 $16.59 $143.09 $8.15 $ 167.83 $ 156.08 $11.75 Employee + 2+ $22.59 $143.09 $8,15 $ 173.$3 $ 161.62 $12.21 CITY will pay the remaining premium for dental/life and vision. 15.3 Any coverage made available to future retirees beyond COBRA time requirements shall be paid for by the retiree. 15.4 The provisions of this ARTICLE shall be binding on the parties through the remainder of this MOU, and for the term of the MOU, which will be effective upon City Council approval. The parties agree herewith to re -open discussion with respect to this ARTICLE, for any changes to the 2019 and 2020 health rates. SEIU MOU 2017-20 Page 17 ARTICLE 16 - EDUCATION INCENTIVES 16.1 CITY agrees to reimburse the costs for job-related and job -required certifications, correspondence courses, and licenses (except Class III driver's license) upon successful completion of the examination or course by the employees, having written authorization in advance from their department head. This shall include application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by the CITY. This provision does not apply to continuing education requirements. 15,2 CITY agrees to provide a CITY vehicle, when available, during normal working hours for required transportation, and will permit paid time for employees to take examinations scheduled during normal working hours. No mileage payments axe authorized for personal transportation, and time spent outside normal working hours shall not be compensated, except that tests taken for CITY -required certifications shall be taken in paid status. ARTICLE 17 - WORK UNIFORMS 1.7.1 CITY will provide work coveralls, including laundry service, for each employee whose working conditions create undue wear and tear on work clothing. CITY will select and provide uniform work shirt, including laundry service, for all field employees. Work shirts shall include a CITY logo and the employee's name. 17.2 Determination of individual entitlement to CITY -provided work uniforms will be at the discretion of the appropriate department head, and with the approval of the City Manager. UNIT members in classifications currently receiving uniforms shall continue to do so. 17.2.1 Each employee, as determined in 17.2, will be provided a Ca1PERS benefit of $15.18 per pay period, This benefit shall increase should the cost increase. 17.3 Safety Shoes Effective July 1, 2016, employees required to wear steel -toed safety shoes and Harbor Patrol Officers required to wear approved footwear in the performance of their duties, shall be eligible to receive an annual reimbursement, for the provision of said shoes, in the amount of $200 per fiscal year. Harbor Patrol Officers shall be required to wear 6" black leather boots or waterlsafety- spec: ifie shoes as approved within the sole discretion of the Harbor Director. Proof of purchase of shoes and boots are required, Once purchased, such appropriate footwear must be worn only while working. SEIL7 MOL12017-20 page 18 P_ ARTICLE 1S —WAGES AND INCENTIVES 18.1 Effective retroactive to the pay period including July 1, 2016 for those employees stili employed by the CITY upon City Council adoption of this MOL], the CITY shall provide a Cost of Living Adjustment (COLA) increase to base salaries for all UNIT classifications by 2.25% (see Exhibit A updated salary table). 18.2 Required Certificate. Employees in the Maintenance Worker classifications in the Collections division shall receive a $75 per month incentive for the California Water Environment Association Collections Certificate required by their classification. Those employee classifications are: Wastewater Collection System Leadworker and Wastewater Collection System Operator I, II and III. 18.3 Additional Certificate. An employee classified as a Wastewater Treatment Plant Operator with a certificate issued by the California State Water Resources Control Board, or those employees classified as Water System Operator and Wastewater Collection System Operator, shall receive a $50 per month incentive for one certification above that required by the position held. Those employees classified as Water System Operator will additionally receive a $50 per month incentive for one treatment certification above that required by the position held. 18A All salary adjustments, including but not limited to merit increases, educational incentives, and any other pay adjustments will take effect at the beginning of the next payroll period after the scheduled effective date of the increase. 18.5 Any and all special pay incentives will be calculated on base salary. 18.6 Attached Exhibit A reflects wages for UNIT members for the duration of this MOU. 18.7 CITY conducted internal salary survey for informational purposes as agreed in the SEII J MOU 2016-17. The market comparable cities studied included; City of Paso Robles, the City of Atascadero, the City of San Luis Obispo, the City of Pismo Beach, the City of Grover Beach and the City of Arroyo Grande. Positions dedicated to the Harbor Department included Channel Island Harbor, Pillar Point Harbor, and Ventura Port district. 18.8 Effective July 1, 2017, the CITY shall provide a CODA increase to base salaries for all UNIT classifications in the amount of two percent (2%). SEITJ MOU 2017-20 Page 19 18.9 Contingent upon satisfaction of the following financial terms and conditions, the CITY shall provide a COLA increase to be effective July 1, 2018 to base salaries for all UNIT classifications in the amount of two percent (2%) for the 2018-2019 fiscal year: o "Total major General Fund Revenues (Property Tax, Sales Tax and Transient Occupancy Tax) meet or exceed the combined forecasted amount of $9,406,194 (matches 10 -year forecast and FY 17/19 budget adopted by Council). This figure shall be based on current tax rates (currently 1% Property Tax, 1.0% CITY Sales Tax, 10% TOT). In the event of increased tax rates, such increased rates would not count towards increased revenue receipts for this purpose. o The CalPERS investment rate of return (i.e. "Discount Rate") to take effect in FY18-19 does not drop below the rates announced by CalPERS on December 21, 2016, causing the CITY's contribution to CalPERS to increase more than $104,000 beyond the current budgeted amounts for the Genera] Fund. o The CITY does not become responsible, during FYI 7-18, for any state/federally imposed unfunded mandates from any external source(s) that require significant unpl=ed/ un -forecasted General Fund expenditure(s) of more than $300,000 in a fiscal year, including significant natural disasters affecting the CITY. Any such expenditure(s), cumulatively totaling $300,000 in a'fiscal year or more, will be counted as a reduction in the combined revenue amount discussed in this section on which the various conditions are based, resulting either in a lower employee bonus or reduction in the intended COLA increase to 1% or 0%. 18.9.1 Contingencies in the event of a revenue shortfall for FY 2017-18: o If total major General Fund Revenues are less than $71,000 below the forecasted amount (i.e. more than $9,335,194), then the COLA will be 2%, effective July 1, 2018. o If total major General Fund Revenues are between $71,000 and $141,999 below the forecasted amount (i.e. between $9,264,145 - $9,335,193), then the COLA will be 1%, effective July 1, 2018. o If total major General Fund Revenues are $142,000 or more below the forecasted amount (i.e. less than $9,264,194), there will be no COLA effective July 1, 2018. 18.9.2 Timing of July 1, 2018 COLA, if any: o If the CITY determines, based on revenues received as of June 1, 2018, that it is reasonable to assume the combined receipts will meet or exceed the General Fund revenue threshold, then the COLA will be effective as of July 1, 2018. $ETU MOU 2017-20 Page 20 o If meeting the General Fund revenue threshold is not a reasonable assumption as of June 1, 2018, then the parties agree to wait for actual receipts to be posted, which the CITY anticipates will occur by the end of August. If the threshold is met at the time actual receipts are received, the CITY agrees to implement the COLA retroactive to July 1, 2018. 18.9.3 Potential One -Time Lump Sum Payment in the event of revenue surplus for FY 201711$ o If the conditions described in Section 18.9 are satisfied, and total major General Fund Revenues for FY 2017118 are above forecast, then in addition to the 2% COLA, 20% of the amount above the forecast amount will be divided equally by the number of full-time equivalent (FTE) employees and such amount shall be distributed to UNION -represented Employees in the form of a one-time lump sum payment. 18.10 Contingent upon satisfaction of the following financial terms and conditions, the CITY shall provide a COLA increase effective July 1, 2019 to base salaries for all Unit classifications in the amount of two percent (2%) for the 2019-2020 fiscal year: o Total major General Fund Revenues (Property Tax, Sales Tax and Transient Occupancy Tax) meet or exceed the combined forecasted amount of $9,395,906 (matches 10 -year forecast). This figure shall be based on current tax rates (currently 1% Property Tax, 1.0% City Sales Tax, 10% TOT). In the event of increased tax rates, such increased rates would not count towards increased revenue receipts for this purpose. o The CalPERS investment rate of return (i.e. "Discount late") to take effect in FY 19-20 does not drop below the rates announced by CalPERS on December 21, 2016, causing the CITY's contribution to CalPERS to increase more than $100,000 beyond the current budgeted amounts for the General Fund. o The CITY does not become responsible, during FYI S-19, for any state/federally imposed unfunded mandates from any external source(s) that require significant unplanned/ un - forecasted General Fund expenditure(s) of more than $300,000 in a fiscal year, including significant natural disasters affecting the CITY. Any such expenditure(s), cumulatively totaling $300,000 in a fiscal year or more, will be counted as a reduction in the combined revenue amount discussed in this section on which the various conditions are based, resulting either in a lower employee bonus or reduction in the intended COLA increase to I% or 0%. 18.10.1 Contingencies in the event of a revenue shortfall for FY 201$-19: SEIU MOU 2017-20 Page 21 o If total major General Fund Revenues are less than $71,000 below the forecasted amount (i.e. more than $9,322,906), then the COLA will be 2%, effective July 1, 2019. o If total major General Fund Revenues are between $71,000 and $141,999 below the forecasted amount (i.e. between $9,253,907 - $9,335,194), then the COLA will be 1%, effective July 1, 2019. o If total major General Fund Revenues are $142,000 or more below the forecasted amount (i.e. less than $9,253,906), there will be no COLA effective July 1, 2019. 18.10.2 Timing of July 1, 2019 COLA, if any: o If the CITY determines, based on revenues received as of June 1, 2019, that it is reasonable to assume the combined receipts will meet or exceed the General Fund revenue threshold, then the COLA adjustment will be effective as of July 1, 2019. o If meeting the General Fund revenue threshold is not a reasonable assumption as of June 1, 2019, then the parties agree to wait for actual receipts to be posted., which the CITY anticipates will occur by the end of August. If the threshold is met at the time actual receipts are received, the CITY agrees to implement the COLA retroactive to July 1, 2019. o In the event of a 0% COLA. in FY 2019120, the parties agree to retain the option to re- open discussion regarding COLAs for FY 2019120. 18.10.3 Potential ane -Time Lump Sum Payment in the event of revenue surplus for FY 2017118 o If the conditions described in Section 18.10 are satisfied, and total major General Fund Revenues for FY 2018119 are above forecast, then in addition to the 2% COLA, 20% of the amount above the forecast amount will be divided equally by the number of full-time equivalent (FTE) employees and such amount shall be distributed to UNION -represented Employees in the form of a one-time lump sum payment. 18.11 The threshold amounts for the COLA contemplated in Section 18.9, potentially occurring in the 2018-2019 fiscal year, will be based on the CITY's adopted 2017-2018 fiscal year budget. The threshold amounts for the COLA contemplated in Section 18.10, potentially occurring in the 2019-2020 fiscal year, will be based on the CITY's 10 -year budget forecast presented to City Council on Feb 28, 2017. The threshold amounts referenced in this Article 16 are based on the following calculations: COLA Year AffectedTFY18-19 FY19-20 Combined Receipts Forecast I FY17-18 Budget I FYI 8-19 Forecast SEIU MOU 2017-20 Page 22 Property Tax 2,944,306 3,034,754 Property Tax In -Lieu (VLFAA) 1,004,328 1,037,401 Subtotal Property Tax 3,948,634 4,072 155 Sales Tax (local & triple -flip) 1,777,564 1,745,439 Sales Tax (Prop 172 -Safety) 127,345 123,525 Subtotal Sales Tax 1,905,009 1,868,964 Transient Occupancy Tax 3,552,551 1454,787 Combined Total Threshold $9,406,194 $9,395,906 18.12 The parties agree herewith to retain the option to re -open discussion of Sections 18.2 and 18.3 in this Article 18, with respect to additional certificate pay for those employee classifications listed in Section 18.2 and 18.3. 1$.13 The parties agree herewith to retain the option to re -open discussion of salary equity adjustments proposed by the UNION for the following personnel: Harbor Patrol Officer, Harbor Patrol Supervisor, Harbor Business Coordinator, and Associate Civil Engineer. ARTICLE 19 - SPECIAL PAY PRACTICES 19.1 Standby 19.1 .1 Standby duty is defined as that circumstance which requires an employee so assigned to: Be ready to respond immediately to a call for service, Be readily available at all hours by telephone or other agreed upon communication equipment; and Refrain from activities which might impair his/her assigned duties upon call. 19.1.2 It is agreed that personnel, who are scheduled on a routine basis, for standby duty, shall be compensated at the rate of forty-two ($42) per day for each day of scheduled standby duty performed. This increase is effective upon the City Council ratification of this MOU. Effective upon City Council ratification of this MOU, standby pay rates for the following, City recognized holidays, shall be compensated at the rate of sixty dollars ($60.00) for UNION employees except Harbor Department: New Year's Day Martin Luther King, Jr.'s, Day Lincoln's Birthday President's Day Memorial Day Independence Day SElU MOU 2017-20 Page 23 January 1 3`d Monday in January February 121n 3rd Monday in February Last Monday in May July 4"' 3001 Labor Day Veterans' Day Thanksgiving Day Day after Thanksgiving Day Christmas Day lit Monday in September November 11 "' 41h Thursday in November Friday after Thanksgiving December 25th 19.1.3 For Harbor Department employees (HPO Supervisor and Officers), standby rates shall be compensated at the rate of sixty dollars ($60.00) for the agreed upon holidays listed below, regardless of the City -recognized holiday schedule: 1) New Year's Eve 2) New Year's Day 3) Memorial Day Weekend Friday 4) Memorial Day Weekend Saturday 5) Independence Day 6) Labor Day Weekend Friday 7) Labor Day Weekend Saturday 8) Thanksgiving Day 9) Day after Thanksgiving 10) Christmas Eve 11) Christmas Day 19.2 Call Back 19.2.1 Call back is defined as that circumstance which requires an employee to unexpectedly return to work after the employee has left work at the end of the employee's work shift; except that an early call in of up to two (2) hours prior to the scheduled start of a work shift shall not be counted as a call back. 19.2.2 CITY will guarantee a minimum of three (3) work hours credit (four and one half (4112) hours compensation), for each employee called back for work, as defined above. 19.2.3 Whenever an employee is called back to work, the CITY considers the employee "on -duty" for three hours, even if employee returns home. No additional call-back time pay is allowed during this period, if the employee is again called back. However, if more than three hours have passed since the initial call-back, and the employee is called back to work again, the employee may claim an additional three work hours credit (four and one-half hours call-back compensation) under the conditions set forth in 19.2.1 above. 19.2.4 Said employee shall receive either pay or compensatory time -off, pursuant to Article 10 - Overtime Compensation, for the minimum or for all time actually worked, whichever is greater. SEIU MOU 2017-20 Page 24 19.2.5 Employees called back to work, pursuant to this section, shall be eligible for mileage reimbursement when utilizing their personal vehicle. 19.3 Members of this UNIT who are required by their supervisor to attend meetings outside of the normal work schedule shall be paid a minimum of three hours at time and one-half without regard to hours actually worked during the work week. Meetings during regular work hours shall be included in employees' regular rate of pay and not compensated beyond that. 19.4 Class A Driver's License and Captain's License Effective with the City Council ratification of this MOU, UNIT members, possessing a Class A Driver's License, will receive $50 per month. Effective with the City Council ratification of this MOLT, UNIT members in the Harbor Department, possessing a Captain's License, will receive $50 per month. 19.5 Bilingual Pay (Spanish) Effective with the City Council ratification of this MOU, up to three (3) UNIT members may earn $75 per month for speaking Spanish, and $75 per month for writing in Spanish, for a total possible of $150 per month. A test is required; Human Resources, or designee, will administer the test. UNIT employees have the option to re -open and discuss this section to add other languages, if the need is demonstrated. ARTICLE 20 - PROBATION The probationary period for newly hired employees shall be 12 months. The probationary period for employees promoted to a higher classification shall be six months in the new classification. The CITY shall have the option of granting a newly -hired employee regular status at any time after nine months of service. ARTICLE 21 - GRIEVANCE PROCEDURE 21.1 Purpose of the Procedure The primary purpose of this procedure shall be to provide a means whereby an employee, without jeopardizing his/her employment, can express a personal grievance relating to his/her wages, hours of work, and working conditions, and obtain a fair and equitable disposition of his/her grievance. SEIU MOU 2017-20 Page 25 ,p� 21.2 Definition of Informal Grievance An informal grievance is defined as an oral (or email) concern by an employee expressed to his/her supervisor with a request to informally discuss the grievance with the supervisor and/or the department head. 21.3 Definition of Normal Grievance A formal grievance shall be defined as any formal written complaint of an employee filed with his/her immediate supervisor within thirty days of the action or inaction by the CITY which constitutes the subject of the grievance relating to his/her wages, hours of work, and working conditions. Such grievance shall not include performance evaluations or reprimands. However, employees may provide a written rebuttal to a performance evaluation or written reprimand that will be attached to the original document for placement in the employee's file. 21.4 Informal Discussion with Supervisor An employee shall first pursue all informal grievances with his/her supervisor and at any time that the employee deems that the informal grievance is a formal grievance, the employee may reduce it to a formal written grievance. 21.5 Formal Conference with Supervisor If an employee does not obtain satisfaction of his/her informal grievance by means of an informal discussion with his/her supervisor, or if employee is unable to communicate with his/her supervisor, employee and/or his/her representative may, by written grievance, request and shall be accorded a formal conference within ten days with the supervisor and/or department head. The decision of the supervisor shall be reported to the employee and/or his/her representative within five business days of the date the conference was held with the supervisor. 21.6 Department Review In the event the employee does not obtain satisfaction at any level of review by means of informal or formal grievance and a formal conference with his/her supervisors, employee and/or his/her representative may submit the grievance in writing to the supervisor or department head. The procedure to be followed by the supervisor who receives a grievance in writing shall be established by each department head for his/her department, and shall include review of the grievance by the immediate supervisor and such successively higher levels of management as may be determined by the department head. A cumulative record of the decision and the reason for the decision at each level of review shall be maintained. The ultimate decision shall be that of the department head. The SEIU MOU 2017-20 Page 26 'p- decision must be reported to the employee in writing within ten business days of the date that the request for departmental review was submitted to the supervisor. 21.7 Mediation If, within ten working days after receipt of the written decision of the Department Head the employee is still dissatisfied, he/she may request the services of a mediator from the State Mediation and Conciliation Service. CITY is not bound by the determination and/or recommendations of said mediator. 21.5 Appeal to the City Manager In the event the employee does not obtain satisfaction by means of the mediator, employee and/or his/her representative shall submit the grievance in writing to the City Manager within ten days after notification of the mediator's determination is given to the employee. The City Manager may meet with the employee and/or his/her representative, the mediator and the department head before making a decision; or may waive administrative review and refer the grievance directly to a committee of the City Council appointed to hear grievances. A copy of the City Manager's decision on the matter must be presented to the employee within ten business days of the date the grievance was filed with the City Manager. 21.4 Submission to a Committee of the City Council In the event that the employee does not obtain satisfaction by means of the administrative procedures outlined above, he/she may request a hearing by a committee of the City Council. The hearing shall be held by the committee within fifteen business days of the date of receipt of the request at the convenience of all parties, unless waived by mutual consent of the employee and the department head. The hearing shall be informal. The employee and/or his/her representative, the department head and/or the City Manager shall appear before the committee to present the facts pertinent to the case. The 'burden of proof shall rest with the employee. The committee shall limit its review of the grievance to the subject matter contained in the previous steps of the grievance procedure and shall make its decision within thirty days after the termination of the hearing unless of the hearing unless a reasonable time extension is deemed necessary and all parties are notified. 21.14 Time Limits In case the time limits outlined above are not observed by the representative of the CITY, the employee and/or his/her representative shall have the right to carry the grievance directly to the next higher level of review. SEIU MQU 2417-24 Page 27 21,11 Group Grievance Procedure The recognized employee organizations may present a general grievance (affecting several employees) in writing directly to the City Manager. Upon receipt of such grievance, the City Manager shall establish a time for a hearing, at which time all affected parties may appear before the City Manager to present facts pertinent to the issue. The decision of the City Manager shall be presented to all parties concerned within fifteen business days and, within five business days of receipt of the City Manager's decision which is unacceptable, shall be appealable by the group to a committee of the City Council for their findings and recommendations within thirty days thereafter, If either party wishes to appeal, they may file an appeal with the City Council as a whole within five business days of the final decision of the committee of the City Council. ARTICLE 22 - NO STRIKE, NO LOCK -GUT 22.1 During the term of this MOU, the CITY will not lockout any employees nor will UNIT employees or the UNION cause, authorize, advise or encourage any interruption of work or any other concerted action. The term "interruption of work" shall mean any work stoppage, "sick out," or strike (including economic, sympathy, and unfair labor practice strikes) or any intentional slowdown of work. The term "other concerted action" includes picketing or boycott activities by the UNION, 22.2 There shall be no refusal to work on, handle or produce any materials or equipment because of a labor dispute. 22.3 Any employee engaging in any action prohibited by this Articic shall be subject to immediate discharge or such other discipline as the CITY may assess. Such discharge or discipline shall not be reviewable through the Grievance Procedure. ARTICLE 23 - FULL, UNDERSTANDING, MODIFICATION, WAIVER 23.1 This MOU sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. 23.2 It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right to negotiate, and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein. Notwithstanding the foregoing, it is agreed that from time -to -time the CITY may introduce changes in its Personnel Rules and offer the Union an opportunity to meet and confer prior to implementing changes within the scope of bargaining. SEIU MOLT 201720 Mage 28 IL 233 No agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved by the CITY and ratified by the membership of the UNION. 23.4 The waiver of any breach of any term, or condition of this MOU by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. 24.4 The City agrees to meet and confer regarding any change in job titles and descriptions of represented employees. ARTICLE 24 - SEVERABILITY If any provision(s) are held to be contrary to law by a court of competent jurisdiction, such provision(s) will not be deemed valid and subsisting except to the extent permitted by law, but all other provisions will continue in full force and effect. ARTICLE 25 – JOINT DRAFTING Each party has cooperated in the drafting and preparation of this MOU. Hence, in any legal construction or interpretation to be made of this MOU, the same shall not be construed against any party. ARTICLE 26 – CITY COUNCIL APPROVAL The CITY's labor relations representatives and the UNION's representatives have met and conferred in good faith on wages, hours and other terms and conditions of employment for the UNIT members represented by the UNION and have reached agreements which are set forth in this MOU. This MOU, when executed by the CITY's labor relations representatives and the UNION's representatives, constitutes a joint recommendation therefrom, after ratification of the UNION's membership, to be submitted to the City Council for its determination and approval by resolution. This MOU is of no force or effect unless or until approved and adopted by a resolution of the City Council. SEIU LOCAL 620 lh* Darryl Scheck, Field Representative C�� -� �.b—i Lori atilts, Shop Steward ff& Dustin Pittman, Team Member SEIL1 MOU 2017-20 Page 29 CITY OF MORRO BAY M i . L041" Interim City Manager Colin Tanner, Negot'ator, Aleshire & Wynder A"-- hj0't'-.J Laurie G rth, Hum esources 2 3 No agr�!emen(, alteration, understanding, variation, waiver, or modification of any of the tens or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved by the CITY and ratified by the membership of the UNION. 23,4 The waiver of any breach of any term, or condition of this MOU by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. 24.4 The City aurees to meet and confer regarding any change in job titles and descriptions of represented employees. ARTICLE 24 - SEVERABILITY If any provision(s) are held to be contrary to law by a court of competent jurisdiction. such provision(s) N- ill not be deemed valid and subsisting except to the extent permitted by law. but all other provisions will continue in full force and effect. .ARTICLE 25 — JOINT DRAFTING Each party has cooperated in the drafting and preparation of this NIOU. Hence. in any legal construction or interpretation to be trade of this MOU, the same shall not be construed a`aainst any party. ARTICLE 26 — CITY COUNCIL APPROVAL The CITY's labor relations representatives and the UNION's representatives have met and conferred in good faith on Nva -es, hours and other terms and conditions of employment for the UNIT members represented by the UNION and have reached agreements which are set forth in this MOU. This MOU, v hen executed by the CITY's labor relations rePresentatives and the UNION's representatives, constitutes a join- recommendation therefrom. after ratification of the UNION's membership, to be submitted to the City Council for its determination and approval by resolution. This MOU is of rio force oz effect unless or until approved and adopted by a resolution of the City Council. fiEIU LOCAL 620 CITY OF .NIORRO BAY �r Darrvl Scheck. Field Representative!! N,1 rti . LomelE. Interim City Manager I.ori 4101ts, Shop Steward Colin Tanner, Ncgoflator, Aleshire & Wvnder Dustin Pittman. Team Member i.Uzurie do'k. rth. Hum' esvunes SL -IL MOU 2017-20 Pace 29 Dyl xuitt, Team Member r .- SEIU MOU 2617-20 Page 30 p�-�So ana Swanson, City Clerk EXHIBIT A CITY OF MOFRO BAY FY 17118 SElU REPRESENTED CLASSIFICATIONS & SALARY SCHEDULES TITLE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 ACCOUNT CLERK I 37,720 39,606 41,586 43,665 45,848 WASTEWATER COLL SYS OPERATOR I 37,720 39,606 1 41,586 43,665 45,848 OFFICE ASSISTANT III 37,720 39,606 41,586 43,665 45,848 OFFICE ASSISTANT IV 40,781 42,820 44 961 47,209 49 569 ACCOUNT CLERK II 42,368 44,486 46,710 49,046 51,498 WASTEWATER COLL SYS OPERATOR II 42,368 44,486 46,710 49,046 51,498 CONS MAINTENANCE WORKER II 42,368 44,486 46,710 49,046 51,498 WATER SYSTEM OPERATOR I 42 368 44,486 46,710 49,046 51,498 WASTEWATER SYSTEMS OP-IN-TRNG 42,368 44,486 46,710 49,046 51,498 WASTEWATER TREATMENT OP-IN-TRNG 42,368 44,486 46,710 49,046 51,498 PERMIT TECHNICIAN 43,390 45,559 47,837 50,229 52,741 ACCOUNT CLK 111 45,377 47,646 50,028 52,529 55,156 WASTEWATER COLL SYS OPERATOR II1 45,377 47,646 50,028 52,529 55,156 CONS MAINTENANCE WORKER III 45,377 47,646 50,028 52,529 55,156 WASTEWATER SYSTEMS OP I 45,377 47,646 50,028 52,52-9, 55,156 WASTEWATER TREATMENT OP 1 45,377 47,646 50,0228 52,529 55,156 ADMINISTRATIVE TECHNICIAN 46,178 48,487 50,912 53,457 56,130 ADMINISTRATIVE UTILITIES TECH 46,178 48-14-87 0,912 53 457 56 130 PERMIT TECHNICIAN - CERTIFIED 46,178 48,487 50,912 53,457 56,130 SUPPORT SERVICES TECHNICIAN 46,178 48,487 50,912 53,457 56,130 MECHANIC 47,655 50,038 52,540 55,167 57,925 WATER SYSTEM OPERATOR II 50,478 53,002 55,652 58,434 61,356 WASTEWATER SYSTEMS OP II 50,078 53,002 55,652 58,434 61,356 WASTEWATER TREATMENT OP II 50,078 53,002 55 652 58,434 61,356 HARBOR PATROL OFFICER 52,650 55,283 58,047 60,949 1 63,997 SEIU MDU 2017-20 Page 31 WASTEWATER COLL SYS LEADWORKER 52,802 55,442 58,215 61,125 64,182 TITLE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 CONS MAINTENANCE LEADWORKER 52,802 55,442 58,215 61 125 64 182 ENGINEERING TECHNICIAN III 52,802 55,442 58,215 61,125 64,182 WATER SYSTEM OPERATOR III 53,001 55,651 58,434 61,356 64,423 WASTEWATER SYSTEMS OP III 53,001 55 651 58,434 61,356 64,423 WASTEWATER TRTMT OP II/LAB ANAL'Y'ST 53,001 55,651 58,434 61,356 64,423 RECREATION SUPERVISOR 53,977 56,676 59,510 62,486 65,610 .ASSISTANT PLANNER 54,314 57,030 59,881 62,875 66,419 ASSISTANT CIVIL ENGINEER 56,48 59,308 62,273 65,387 68,656 BUILDING INSPECTOR 56,484 59,308 62,273 65,387 68,656 ENGINEERING TECHNICIAN IV 56,484 59,308 62,273 65,3$7 68,656 WASTEWATER SYSTEMS LEADWORKER 56,484 59,308 62,273 65,387 68,656 WASTEWATER TREATMENT LEADWORKER 56,484 59,305 62,273 65,387 65,656 HARBOR BUSINESS COORDINATOR 55,794 61,734 64,820 65,061 71,464 HOUSrNG PROGRAMS COORDINATOR 58,794 61,734 64,820 68,061 71,464 RECREATION COORDINATOR 58,794 61,734 64,820 68,061 71 464 HARBOR PATROL SUPERVISOR 62,017 65,118 68,374 71,792 75 382 ASSOCIATE CIVIL ENGINEER 63,211 66,372 69,691 73,175 76,834 ASSOCIATE PLANNER 63,211 66,372 69,691 73,175 76,834 BUILDING INSPECTORIPLANS EXAMINER 63,211 66,372 69,691 73,175 76,534 WASTEWATER COLL SYS SUPERVISOR 63,211 66,372 69,691 73,175 76,834 CONS MAINTENANCE FIELD SUPERVISOR 63,211 66,372 69,691 73,175 76,834 WATER SYSTEM SUPERVISOR 63,211 66,372 69,691 73,175 76,834 WASTEWATER TREATMENT SUPERVISOR 63,211 66,372 69,691 73,175 76,834 WATEWATER SYSTEMS SUPERVISOR 72,692 76,327 80,143 84,150 88,358 SEIU MOU 2017-20 Page 32