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HomeMy WebLinkAbout FULL PACKET_2010-09-20 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED ? As Recommended SANTA ANA EMPOWERMENT ? As Amended CORPORATION FINANCIAL AUDIT El Ordinance on 1ST Reading ? Ordinance on 2"d Reading FOR FY 2009-2010 AND DISSOLUTION OF ? Implementing Resolution THE SANTA ANA EMPOWERMENT ? Set Public Hearing For CORPORATION CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION 1. Approve the closing Financial Audit of the Santa Ana Empowerment Corporation for fiscal year 2009-2010 as prepared by Macias Gini & O'Connell LLP. 2. Authorize the City Attorney and City Manager to proceed with the dissolution of the Santa Ana Empowerment Corporation. DISCUSSION The City of Santa Ana received a Federal Empowerment Zone designation in 1999 from the Department of Housing and Urban Development (HUD). This designation expired on December 31, 2009. As part of the Empowerment Zone requirements, an A-133 audit is necessary. The Santa Ana Empowerment Corporation (SAEC) contracted with Macias Gini & O'Connell LLP to conduct a final financial audit of the Corporation that was established to oversee and implement the grant on behalf of the City. The financial audit took place the week of August 9, 2010. The auditors found no material issues and determined that the SAEC was in compliance with the Nonprofit Integrity Act of 2004. A copy of the audit will be submitted to HUD for its records and the City Attorney will proceed with dissolving the Santa Ana Empowerment Corporation with the Secretary of State. FISCAL IMPACT There is no fiscal impact associated with this action. Cynthia J. Nelson Deputy City Manager for Development Services Community Development Agency CJN/LAS/DS/mlr Exhibit: 1. Financial Audit 19C-1 19C-2 Certified Pubt c Accountants. :5. ?f S;,: F~F. 4eF .~.:t mgocpa,corn To the Mayor and City Council of the City of Santa Ana We have audited the financial statements of the Santa Ana Empowerment Corporation (Organization) for the year ended June 30, 2010, and have issued our report thereon dated September 10, 2010. Professional standards require that we provide you with the following information related to our audit. Our Responsibilities under U.S. Generally Accepted Auditing Standards and OMB Circular A-133 As stated in our engagement letter dated May 8, 2009, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. In planning and performing our audit, we considered the Organization's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. As part of obtaining reasonable assurance about whether the Organization's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions is not an objective of our audit. Also in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the Organization's compliance with the types of compliance requirements described in the "U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement" applicable to its major federal program for the purpose of expressing an opinion on the Organization's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the Organization's compliance with those requirements. Planned Scope and Timing of the Audit An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involved judgment about the number of transactions to be examined and the areas to be tested. EXHIBIT 1 b~ I /I 9C-3 Our audit included obtaining an understanding of the Organization and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the Organization. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Organization are described in Note (1) to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during year. We noted no transactions entered into by the Organization during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected We noted that the Organization's significant account balances are not dependent upon management's estimates. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was regarding the Organization's ability to continue as a going concern. This disclosure is included as Note (8) to the financial statements. Diculties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. 19C-4 Management Representations We have requested certain representations from management that are included in the management representation letter dated September 10, 2010. Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the Organization's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Organization's auditors. These discussions occurred in the normal course of our professional relationship, and our responses were not a condition to our retention. This information is intended solely for the information and use of the Mayor, City Council and management of the Organization and is not intended to be and should not be used by anyone other than these specified parties. a.." I D Certified Public Accountants Newport Beach, California September 10, 2010 19C-5 19C-6 SANTA ANA EMPOWERMENT CORPORATION Financial Statements and Single Audit Report Years Ended June 30, 2010 and 2009 (With Independent Auditor's Report Thereon) 19C-7 SANTA ANA EMPOWERMENT REPORT Financial Statements and Single Audit Report June 30, 2010 and 2009 Table of Contents Page Independent Auditor's Report 1 Financial Statements: Statements of Financial Position 3 Statements of Activities 4 Statements of Functional Expenses 6 Statements of Cash Flows 8 Notes to the Financial Statements 9 Single Audit Report: Schedule of Expenditures of Federal Awards 16 Note to the Schedule of Expenditures of Federal Awards ..................................................................17 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards ..........................................................19 Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and On Internal Control Over Compliance in Accordance with OMB Circular A-133 ................................................................21 Schedule of Findings and Questioned Costs .................................................................................................23 Summary Schedule of Prior Audit Findings .................................................................................................26 19C-8 M Certified PubUc Accountants. tugocpa.corn To the Mayor and City Council of the City of Santa Ana Independent Auditor's Report We have audited the accompanying statement of financial position of the Santa Ana Empowerment Corporation (Organization), a California nonprofit organization, as of June 30, 2010 and 2009, and the related statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Organization as of June 30, 2010 and 2009, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. The accompanying financial statements have been prepared assuming that the Organization will continue as a going concern. As discussed in Note (8) to the financial statements, the Department of Housing and Urban Development has determined that the grant period for all Empowerment Zone grants ended on August 30, 2010. The Organization will have until September 15, 2010 to request reimbursement for eligible Empowerment Zone expenses. At the conclusion of the grant period the Organization will discontinue operations. In accordance with Government Auditing Standards, we have also issued our report dated September 10, 2010, on our consideration of Organization's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. t, 1VC-9 . Our audit was conducted for the purpose of forming an opinion on the basic financial statements of the Organization taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. %ia'c ae;~ ~ D Certified Public Accountants Newport Beach, California September 10, 2010 19G-10 SANTA ANA EMPOWERMENT CORPORATION Statements of Financial Position June 30, 2010 and 2009 2010 2009 Assets: Current assets: Grant receivable $ 109,608 $ 436,029 Total current assets 109,608 436,029 Loans receivable 1,799,033 133,304 Total assets $ 1,908,641 $ 569,333 Liabilities and net assets: Current liabilities: Accounts payable $ 15,138 $ 1,187 Accrued program reimbursements to subrecipients 41,714 41,438 Total current liabilities 56,852 42,625 Payable to HUD 1,799,033 133,304 Advances from the City of Santa Ana 52,756 393,404 Total liabilities 1,908,641 569,333 Net assets: Unrestricted - - Total liabilities and net assets $ 1,908,641 $ 569,333 See Accompanying Notes to the Financial Statements. 3 19C-11 SANTA ANA EMPOWERMENT CORPORATION Statements of Activities Years Ended June 30, 2010 and 2009 2010 2009 Unrestricted net assets: Revenue and support: Empowerment Zone grant $ 2,780,246 $ 1,385,243 Program income - 1,571 Total revenue and support 2,780,246 1,386,814 Expenses: Program services 2,151,741 716,534 Management and general 628,505 687,566 Total expenses 2,780,246 1,404,100 Change in net assets - (17,286) Net assets, beginning of year - 17,286 Net assets, end of yeas $ - $ - See Accompanying Notes to the Financial Statements. 4 19C-12 This page intentionally left blank. 19C-13 SANTA ANA EMPOWERMENT CORPORATION Statements of Functional Expenses Years Ended June 30, 2010 and 2009 2010 Program Management Total Services and General Expenses Salaries $ - $ 398,133 $ 398,133 Fringe benefits - 96,265 96,265 Total salaries and benefits - 494,398 494,398 Occupancy - 26,679 26,680 Communications - 3,609 3,609 Training and transportation - 2,605 2,605 Advertising and promotion - 89 89 Office expense - 9,769 9,769 Equipment and software - - - Indirect costs - 10,241 10,241 Payments to subrecipients 420,802 - 420,802 Other contracted services - 81,115 81,115 Loan to subrecipient 1,730,939 - 1,730,939 Totals $ 2,151,741 $ 628,505 $ 2,780,246 See Accompanying Notes to the Financial Statements. 6 19C-14 2009 Program Management Total Services and General Expenses $ - $ 444,727 $ 444,727 - 102,753 102,753 - 547,480 547,480 15,210 15,210 5,290 5,290 2,665 2,665 3,928 3,928 - 13,675 13,675 - 257 257 - 20,605 20,605 716,534 - 716,534 - 78,456 78,456 $ 716,534 $ 687,566 $ 1,404,100 7 19C-15 SANTA ANA EMPOWERMENT CORPORATION Statements of Cash Flows Years Ended June 30, 2010 and 2009 2010 2009 Cash flows from operating activities: Change in net assets $ - $ (17,286) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: (Increase) decrease in grants receivable 326,421 (22,319) (Increase) decrease in interest receivable - 17,286 (Increase) decrease in loans receivable (1,665,729) 405,373 Increase (decrease) in accounts payable 13,951 (68,091) Increase (decrease) in accrued program reimbursements to subrecipients 276 15,630 Increase (decrease) payable to HUD 1,665,729 (405,373) Net cash provided (used) by operating activities 340,648 (74,780) Cash flows from noncapital financing activities: Advances from (reimbursements to) the City of Santa Ana (340,648) 74,780 Net increase in cash and cash equivalents - - Cash and cash equivalents, beginning of year - - Cash and cash equivalents, end of year $ - $ - See Accompanying Notes to the Financial Statements. 8 19C-16 SANTA ANA EMPOWERMENT CORPORATION Notes to the Financial Statements June 30, 2010 and 2009 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Organization and Nature of Activities Santa Ana Empowerment Corporation (Organization) is a California nonprofit corporation, which was incorporated on August 16, 1999. The City of Santa Ana (City), the State of California, and the United States Department of Housing and Urban Development (HUD) entered into an agreement in which HUD designated the City as an Urban Empowerment Zone effective January 1, 1999, which will remain in effect until July 2, 2010 or the effective date of HUD's revocation of this designation. In conjunction with this designation, the Organization was created under an approved strategic plan to undertake the responsibilities of the Empowerment Zone program which includes the administration of funds received consistent with community vision, goals, and objectives of the approved strategic plan. The Empowerment Zone program is funded by HUD. (b) Basis of Accounting The preparation of these financial statements requires management to make estimates and assumptions. Those estimates and assumptions affect the reported amount of assets, liabilities, revenues, and expenses, as well as contingent assets and liabilities. Actual results could differ from those estimates. Management also determines the accounting principles to be used in the preparation of these financial statements. A description of significant accounting policies employed in the preparation of these financial statements follows. The financial statements of the Organization have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. (c) Financial Statement Presentation The Organization follows the financial statement presentation recommended by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958-205-45 (Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements ofNot for-Profit Organizations). Under this guidance, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. (d) Cash and Cash Equivalents For purposes of the Statements of Cash Flows, the Organization considers all unrestricted, highly liquid investments with a maturity of three months or less to be cash equivalents. Cash equivalents consist of various demand deposits. As of June 30, 2010 and 2009, the Organization did not have any cash or cash equivalents Refer to Note (3) for an explanation of the advances from the City of Santa Ana. 19C-17 SANTA ANA EMPOWERMENT CORPORATION Notes to the Financial Statements (Continued) June 30, 2010 and 2009 (e) Property and Equipment Property and equipment is capitalized at cost. It is the Organization's policy to capitalize expenditures for property and equipment in excess of $5,000. Property and equipment are being depreciated over their estimated useful lives of three to five years using the straight-line method. All property and equipment has been fully depreciated. (f) Restricted and Unrestricted Revenue and Support The Organization follows FASB ASC 958-605-25 (SFAS No. 116, Accounting for Contributions Received and Contributions Made). In accordance with this guidance, contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statements of Activities as net assets released from restrictions. As described in Note (1)(b), the Organization accounts for its revenues using the accrual basis of accounting. The Organization's most significant source of revenues is the Empowerment Zone Grant from HUD. Grant revenue is recognized when expenditures are incurred. (g) Concentration of Risk The Organization receives all of its funding from HUD. The Organization has a written memorandum of understanding with HUD, which will remain in effect until July 2, 2010 or the effective date of HUD's revocation of this agreement. (h) Income Taxes The Organization is exempt from federal and state income taxes under Internal Revenue Code (IRC) Section 501(c)(3) and Section 23701d of the California Revenue and Taxation Code (CR & TC) and therefore has made no provision for income taxes in the accompanying financial statements. In addition, the Organization has been determined by the Internal Revenue Service not to be a "private foundation" within the meaning of the IRC Section 509(a). The Organization adopted the authoritative guidance for uncertainty in income taxes included in FASB ASC 740-10 Income Taxes (FASB Interpretation (FIN) No. 48, Accountingfor Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109), as amended by Accounting Standards Update (ASU) 2009-06, Implementation Guidance on Accounting for Uncertainty in Taxes and Disclosures Amendments for Nonpublic Entities. The adoption of ASC 740 (FIN 48) did not have an impact on the Organization's financial statements. 19C_18 SANTA ANA EMPOWERMENT CORPORATION Notes to the Financial Statements (Continued) June 30, 2010 and 2009 (i) Functional Allocation of Expenses The costs of providing various programs and activities have been summarized on a functional basis in the Statements of Activities. 6) Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB") implemented the FASB Accounting Standards Codification (the "Codification") effective July 1, 2009. The Codification has become the source of authoritative Generally Accepted Accounting Principles ("GAAP") recognized by FASB to be applied to nongovernmental entities. On the effective date of the Codification, the Codification superseded all then existing accounting and reporting standards. All accounting literature not included in the Codification has become non-authoritative. References to GAAP included in the FASB Codification are noted as Accounting Standards Codification ("ASC"). Following the effective date of the Codification, FASB will not release new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force abstracts, but instead will issue Accounting Standards Updates ("ASU"). ASUs will not be considered authoritative in their own right, but will serve only to update the Codification, provide background information about the guidance in the Codification, and provide the basis for the conclusions on the changes in the Codification. 19C-19 SANTA ANA EMPOWERMENT CORPORATION Notes to the Financial Statements (Continued) June 30, 2010 and 2009 (2) EMPOWERMENT ZONE GRANT The total amounts granted and allocated are as follows: Approved Grants: Second round grant - Year One $ 3,000,000 Second round grant - Year Two 3,666,000 Second round grant - Year Three 12,306,200 Second round grant - Year Four 3,000,000 Second round grant - Year Five 1,987,000 Second round grant - Year Six 994,100 Second round grant - Year Seven 661,333 Second round grant - Year Eleven 667 Total Approved Grants 25,615,300 Allocated Grant Amounts: Expensed during the period ended June 30, 2000 (1,199,953) Expensed during the period ended June 30, 2001 (2,856,500) Expensed during the period ended June 30, 2002 (3,847,624) Expensed during the period ended June 30, 2003 (2,337,630) Expensed during the period ended June 30, 2004 (3,190,000) Expensed during the period ended June 30, 2005 (2,471,670) Expensed during the period ended June 30, 2006 (2,243,119) Expensed during the period ended June 30, 2007 (1,687,564) Expensed during the period ended June 30, 2008 (1,566,386) Expensed during the period ended June 30, 2009 (1,404,100) Expensed during the period ended June 30, 2010 (2,780,246) Total Allocated Grant Amounts (25,584,792) Total Unexpended as of June 30, 2010 $ 30,508 (3) OPERATING AGREEMENT WITH THE CITY OF SANTA ANA On December 6, 1999, the Organization entered into an operating agreement with the City to administer the goals and objectives of the approved strategic plan of the Empowerment Zone. These duties include the monitoring of programs, staffing, administration, and payment of program funds. Through the Memorandum of Understanding with HUD, the City requests payment from HUD for program costs incurred by subrecipients which are administered through the Organization in accordance with the operating agreement. The City advances the funds for these program costs and is reimbursed by HUD. 19G-20 SANTA ANA EMPOWERMENT CORPORATION Notes to the Financial Statements (Continued) June 30, 2010 and 2009 All funds for the Empowerment Zone program are received directly by the City then passed through to the Organization who in turn reimburses subrecipients. The subrecipients' programs have been selected by the Organization to fulfill the goals stipulated in the approved strategic plan. The City is reimbursed for its administration costs associated with this agreement. The initial term of the agreement was through December 31, 2000; thereafter unless cancelled by the Organization through an action of its Board of Directors, which action shall take place no later than November 30 or any calendar year, the agreement shall be extended for the succeeding calendar year or until the termination date of the program. The outstanding advances from the City of Santa Ana were $52,756 and $393,404 at June 30, 2010 and 2009, respectively. (4) PROPERTY AND EQUIPMENT The Organization's property and equipment consist of the following at June 30: 2010 2009 Equipment $ 22,884 $ 22,884 Furniture 30,816 30,816 Subtotal 53,700 53,700 Less: accumulated depreciation (53,700) (53,700) Property and equipment, net of accumulated depreciation $ - $ - (5) GRANT RECEIVABLE The Organization receives all of its grant revenue from HUD through the City. Grant revenue is recognized when expenditures are incurred since all monies received are on a reimbursement basis. The amount due from HUD was $109,608 at June 20, 2010 and $436,029 at June 30, 2009. (6) LOANS RECEIVABLE On May 3, 2002, the Organization entered into an agreement with Taller San Jose, a subrecipient organization, whereby the Organization lent Taller San Jose $200,000 for the purchase of property that will be used for a vocational training program for young at-risk adults. The interest free loan is payable on July 1, 2009. The principal amount is deemed repaid by $2,353 on the first day of each calendar month. Taller San Jose is not obligated to make any payments to the Organization as long as the property is used for the Empowerment Zone program. In the event that the property is put to any other use than the designated Empowerment Zone program, the remaining principal balance would be payable in full to the Organization who would then return the funds to HUD. The outstanding balance was $0 and $2,353 at June 30, 2010 and 2009, respectively. 19C.-21 SANTA ANA EMPOWERMENT CORPORATION Notes to the Financial Statements (Continued) June 30, 2010 and 2009 On June 14, 2005, the Organization entered into an agreement with Kidworks, whereby the Organization awarded Kidworks a conditional grant of $314,282. The funds were used to fund the renovation costs for a community center site located in the Zone 1 area of the Santa Ana Empowerment Zone. As long as Kidworks complies with the terms of the agreement and uses the property for the Empowerment Zone program, an amount equal to $62,856 will be forgiven annually. In the event the property is put to any other use than for the designated Empowerment Zone program before July 31, 2010, the remaining balance would be payable in full to the Organization who would then return the funds to HUD. The outstanding balance was $68,094 and $130,951 at June 30, 2010 and 2009, respectively. On August 20, 2009, the Organization entered into an agreement with The Cambodian Family, a subrecipient, whereby the Organization loaned the Cambodian Family $1,730,939 for the purchase of property that will be used for its headquarters where it will undertake programs for education, job placement and health. The interest free loan is payable on August 20, 2014. The Cambodian Family is not obligated to make payments to the Organization as long as the property is used for the Empowerment Zone program. In the event that the property is put to any other use than the designated Empowerment Zone program, the balance would be payable in full to the Organization who would then return the funds to HUD. The outstanding balance is $1,730,939 as June 30, 2010. (7) ACCRUED PROGRAM REIMBURSEMENTS TO SUBRECIPIENTS Accrued program reimbursements to subrecipients, including retentions payable, consisted of the following at June 30: 2010 2009 The Cambodian Family $ 40,081 $ 13,262 Mexican American Oppurtunity Foundation - 10,630 Templo Calvario CDC 1,633 17,546 Total $ 41,714 $ 41,438 (8) GOING CONCERN The Department of Housing and Urban Development (HUD) has determined that the grant period for all Empowerment Zone grants will end on July 2, 2010. HUD has granted the Organization an extension until August 30, 2010 to incur expenses. The total unexpended grant funds of $30,509 at June 30, 2010 must be expended by that date. The Organization will have until September 15, 2010 to request reimbursement for eligible Empowerment Zone expenses. At the conclusion of the grant period the Santa Ana Empowerment Corporation will discontinue operations. All assets will be reverted to the City of Santa Ana. The salaries and benefits of the staff under the Santa Ana Empowerment Corporation will be transferred to other projects within the Santa Ana Redevelopment Agency. 19C-22 SANTA ANA EMPOWERMENT CORPORATION Notes to the Financial Statements (Continued) June 30, 2010 and 2009 (9) SUBSEQUENT EVENTS The Organization has evaluated subsequent events through September 10, 2010 the date the financial statements were available to be issued. 19C-23 SANTA ANA EMPOWERMENT CORPORATION Schedule of Expenditures of Federal Awards Year Ended June 30, 2010 Federal Amount CFDA Federal Provided to Federal Grantor/Pass-through Grantor Number Grant Term Expenditures Subrecipients U.S. Department of Housing and Urban Development: Passed through the City of Santa Ana: Empowerment Zones Program 14.244 5/4/00-07/02/10 $ 2,780,246 $ 420,802 Total $ 2,780,246 $ 420,802 See Accompanying Note to the Schedule of Expenditures of Federal Awards. 19C,6--24 SANTA ANA EMPOWERMENT CORPORATION Note to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2010 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Scope of Presentation The accompanying schedule presents only the expenditures incurred by the Santa Ana Empowerment Corporation (Organization) that are reimbursable under federal programs for federal financial assistance. For purposes of this schedule, federal awards include federal financial assistance received from the Department of Housing and Urban Development (HUD) through the City of Santa Ana. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. (b) Basis of Accounting The expenses included in the accompanying schedule were reported on the accrual basis of accounting, which is described in Note (1) to the Organization's financial statements. Expenses reported include any property or equipment acquisitions incurred under the federal program. (c) Subrecipients During the fiscal year ended June 30, 2010, the Organization made the following payments to subrecipients: The Cambodian Family $ 304,146 El Puente CDC (Kidwojks) 116,136 Santa Ana WORK Center - Daisy Wheel 520 Total $ 420,802 19G-25 This page intentionally left blank. 190-26 Certified Public Accountants. rngocpa.cc?m To the Mayor and City Council of the City of Santa Ana Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Governmental Auditing Standards We have audited the financial statements of the Santa Ana Empowerment Corporation (Organization), California, as of and for the year ended June 30, 2010, and have issued our report thereon dated September 10, 2010. Our report included an explanatory paragraph highlighting that the Organization will discontinue operations after June 30, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Organization's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Organization's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 24 S N W d SAr> 10? "t,. +t ' V. 1 9C727 We noted certain matters that we reported to management of the Organization in a separate letter dated September 10, 2010.This report is intended solely for the information and use of the Mayor, City Council, management and others within the Santa Ana Empowerment Corporation and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. )ha,.,c a~~ ~ o Certified Public Accountants Newport Beach, California September 10, 2010 19C-28 Certified Pudic Accountants. mgQCj)a.COm To the Mayor and City Council of the City of Santa Ana Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 Compliance We have audited the Santa Ana Empowerment Corporation's (Organization) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on the Organization's major federal program for the year ended June 30, 2010. The Organization's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to its major federal program is the responsibility of the Organization's management. Our responsibility is to express an opinion on the Organization's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Organization's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Organization's compliance with those requirements. In our opinion, the Santa Ana Empowerment Corporation complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2010. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying schedule of findings and questioned costs as item 2010-01. Internal Control Over Compliance Management of the Organization is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Organization's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, we identified a certain deficiency in internal control over compliance that we consider to be a significant deficiency as described in the accompanying schedule of findings and questioned costs as item 2010-01. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. The Organization's response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit the Organization's response and, accordingly, we express no opinion on the response. This report is intended solely for the information and use of the Mayor, City Council, management and others within the Organization and federal awarding agencies, and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. a;,uz, ~ 0 16nned zcP Certified Public Accountants Newport Beach, California September 10, 2010 19CA0 SANTA ANA EMPOWERMENT CORPORATION Schedule of Findings and Questioned Costs Year Ended June 30, 2010 Section I - Summary of Auditor's Results Financial statements: Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weakness(es) identified? No • Significant deficiency(ies) identified not considered to be material weaknesses? None noted Noncompliance material to financial statements noted? No Federal Awards: Internal control over major programs: • Material weakness(es) identified? No • Significant deficiency(ies) identified not considered to be material weaknesses? Yes Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? No Identification of major programs: CFDA No. 14.244 Empowerment Zones Program Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as a low-risk auditee? Yes 19G3 31 SANTA ANA EMPOWERMENT CORPORATION Schedule of Findings and Questioned Costs Year Ended June 30, 2010 Section II - Financial Statement Findings None. Section III - Federal Award Findings and Ouestioned Costs Finding 2010-01 Federal Grantor: Department of Housing and Urban Development Program: Empowerment Zones Program CFDA No. 14.244 Criteria or Specific Requirement When Empowerment Zone funds are expended the grantee must minimize the time elapsing between the disbursement and drawdown. Condition During our testwork of cash management in accordance with OMB Circular A-133, we noted that the Organization's administrative expenses that occurred and were disbursed during FY 08/09 were not drawn down until January 15, 2010; which is not on a timely basis. Cause The deficiency appears to be due to inconsistent implementation of policies and procedures in place by the Organization. Effect Noncompliance with the aforementioned requirement results in the Organization not submitting drawdowns in a timely manner or the receipt of those funds. Questioned Cost Noncompliance with the aforementioned requirement results in untimely drawdown of $35,574. Recommendation We recommend the Organization adhere to policies and procedures that are in place by the Organization to ensure drawdowns are made in a timely manner. 19C .32 SANTA ANA EMPOWERMENT CORPORATION Schedule of Findings and Questioned Costs Year Ended June 30, 2010 Management's Response We concur with this one untimely draw-down of $35,574. We have reminded Finance staff of the importance of drawing down funds in a timely manner. The Finance staff is aware of the Organization's policy and procedures and will apply them consistently. 19G--33 SANTA ANA EMPOWERMENT CORPORATION Summary Schedule of Prior Audit Findings Year Ended June 30, 2010 There were no findings reported for fiscal year ended June 30, 2009. 1966 34 REQUEST FOR 1 COUNCIL ACTION ` CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 7, 2010 TITLE: APPROVED ? As Recommended CONTRACT AWARD FOR WEED AND ? As Amended DEBRIS REMOVAL ? Ordinance on 1s` Reading ? Ordinance on 2nd Reading (SPEC. NO. 10-028) ? Implementing Resolution ? Set Public Hearing For CONTINUED TO ?-620-10 FILE NUMBER TY MANAGER RECOMMENDED ACTION Award a contract to Pestmaster Services for weed and debris removal for a one-year period, with provision for three, one-year renewals in the annual amount not to exceed $252,000. DISCUSSION The Public Works Agency's Maintenance Services Division is responsible for maintaining over 200 vacant lots, easements, and storm drain channels. In order to do so, a contract for weed and debris removal from both public and private properties is required. Removing the weeds and debris will enhance the safety and visual appearance of the areas maintained by the Public Works Agency. The notice inviting bids was advertised on July 19, 2010 and bids were solicited. A summary of the bid invitations and bids received is as follows: 10 Invitations For Bid mailed 2 Invitations For Bid mailed to Santa Ana vendors 3 Bids received Bids were received, opened on August 13, 2010, and evaluated (Exhibit 1). To evaluate costs, vendors provided quotations for representative projects that included various quantities and specifications. The annual amount is based on staff's projection for the next year. The bid received from Pestmaster Services is responsive to the specification. 22A-1 Contract Award for Weed and Debris Removal September 7, 2010 Page 2 FISCAL IMPACT Funds are available in the Sanitation Enterprise, the Federal Clean Water Protection Enterprise, Community Development Agency - Downtown Development and the Merged Housing Capital Projects Funds (account nos. 05717640-62300, 06817640-62300, 40718842-62300 and 50718830-66220). APPROVED AS TO FUNDS AND ACCOUNT: yr Raul Godine II Francisco Gutierrez Executive Director Executive Director Public Works Agency Finance & Mgmt. Services Agency Cynthia J. Nelson Deputy City Manager for Development Services Community Development Agency BP 22A-2 ABSTRACT OF BIDS CONTRACT AWARD FOR WEED & DEBRIS REMOVAL (SPEC 10-028) Vendor Pestmaster Phillips & Naranjo Services Jordan Landscape Location Bishop Redlands Orange Total Cost $ 148,515.00 $ 165,727.00 $ 175,350.00 To evaluate costs, vendors provided quotations for representative projects that included various quantities and specifications Exhibit 1 22A-3 22A-4 REQUEST FOR i COUNCIL ACTION M { CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED ? As Recommended AGREEMENT AMENDMENT FOR BILL PRINT El Or Amended AND PAYMENT SERVICES El Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO i/ J• FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to amend the agreement with InfoSend, Inc. for bill printing and mailing, and electronic bill presentment and payment services from $206,000 to a total not to exceed $223,000 annually, during the term from March 1, 2010 through February 28, 2012. DISCUSSION The Treasury Division is responsible for the billing and payment processing of over 45,100 municipal utility services accounts. On February 20, 2007, the City Council approved an agreement with InfoSend, Inc. for bill printing, mailing and electronic bill presentment services. InfoSend was determined to be the most cost-effective method for printing of all Municipal Utility Service (MUS) bills as well as processing e-payments. We are in the two year renewal period of a three-year agreement with a two year renewal. InfoSend, Inc. agreed to maintain costs associated with providing these services. Additionally, InfoSend, Inc. and staff are ready to move forward in the transfer of dog license bill printing and mailing, and electronic bill presentment and payment services. Outsourcing the bill print and mailing of dog licenses will allow staff to concentrate on dog license process activities, reducing the need for overtime. Dog owners will be able to view and pay their dog license bill on- line, a convenience not currently available. 25A-1 Bill Print and Payment Services September 20, 2010 Page 2 FISCAL IMPACT Total contract cost of the agreement is estimated to be $223,000. Funds are available in the Treasury and Customer Service Account (no. 01110130-63000). A NNML 1, I\ Y" I ~LA Francisco Gutierrez Executive Director Finance & Management Services Agency 25A-2 FOURTH AMENDMENT TO AGREEMENT THIS FOURTH AMENDMENT TO AGREEMENT is entered into this 201h day of September, 2010, by and between InfoSend, Inc., a California corporation ("Consultant") and the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"). RECITALS: A. The parties entered into Agreement # A-2007-050, dated February 20, 2007, (hereinafter "said Agreement") by which Consultant has provided municipal bill printing and mailing services and electronic bill presentment and payment services. B. Said Agreement has subsequently been amended by agreement of the parties in order to extend the term, add compensation to pay for services annually and provide a method to adjust the per unit printing and mailing prices. C. In accordance with the terms and conditions of said Agreement, the parties wish to again amend said Agreement to extend the term for an additional two-year period and provide compensation to pay for services during the extended term. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, except those amended in this Fourth Amendment to Consultant Agreement, the parties agree as follows: 1. Section 2.a., COMPENSATION, shall be amended to increase compensation, allowing for two additional years of service in an annual amount of $223,000 ($206,000 for services + $17,000 applicable Sales Tax) during the term from March 1, 2010 through February 28, 2012. 2. Section 3, TERM, shall be amended to extend the term for an additional two-year period commencing March 1, 2010 and terminating February 28, 2012, unless terminated earlier in accordance with Section 12 of said Agreement. 3. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. 25A-3 IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to Consultant Agreement on the date and year first written above. CITY OF SANTA ANA ATTEST: Maria D. Huizar DAVID N. REAM Clerk of the Council City Manager APPROVED AS TO FORM: JOSEPH W. FLETCHER City Attorney INFOSEND, INC. By: Laura Sheedy Assistant City Attorney MAHMOOD REZAI President & CEO 25A-4 REQUEST FOR FY' COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED AGREEMENT AMENDMENT WITH VISTA ? As Recommended DEL VERDE FOR LANDSCAPE El Amended El Or dinance on 151 Reading MAINTENANCE SERVICES FOR THE ? Ordinance on 2nd Reading SANTA ANA ZOO AT PRENTICE PARK ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute the attached agreement amendment with Vista Del Verde Landscape, Inc. to provide landscape maintenance services at the Santa Ana Zoo at Prentice Park in the amount of $135,316 for a one-year term, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The Parks, Recreation and Community Services Agency is responsible for the landscape maintenance of all City parks and recreational facilities, including the Santa Ana Zoo at Prentice Park. The Santa Ana Zoo landscape has been contract maintained since September 2003, and for the past two-years, Vista Del Verde has provided this service. Vista Del Verde has performed well during this time and staff is pleased with their rate of progress in improving the Zoo grounds. The term of the agreement amendment is from October 1, 2010 through September 30, 2011 and the base agreement amount is $125,316. This amendment includes a $10,000 contingency for unanticipated and emergency work, for a total agreement amount not to exceed $135,316. FISCAL IMPACT Funds are available in the Park Maintenance M&R Buildings and Grounds account (no. 01113250 62320). APPROVED AS TO FUNDS AND ACCOUNTS: Gerardo Mouet, Francisco Gutierrez, Executive Director Executive Director Parks, Recreation and Finance and Management Services Agency Community Services Agency 25B-1 25B-2 AMENDMENT TO AGREEMENT THIS SECOND AMENDMENT TO AGREEMENT, is entered into this 20cn day of September, 2010, by and between Vista Del Verde Landscape Inc. dba Bevill Landscape Management ("Contractor") and the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"). RECITALS: A. The parties entered into Agreement #A-2008-260, dated September 2, 2008, as amended on September 21, 2009 by Agreement # A-2009-164 (hereinafter "said Agreement") by which Contractor has provided high-level landscape maintenance for the Santa Ana Zoo at Prentice Park, pursuant to specific terms and conditions. B. The parties now wish to amend said Agreement to further extend the term for an additional one-year period and provide the identical compensation to pay for the identical services to be performed during the extended term. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, except those amended in this First Amendment to Agreement, the parties agree as follows: 1. Section 2.a., COMPENSATION shall be amended to read as follows: a. City agrees to pay, and Contractor agrees to accept as total payment for its services during the Extended Term, the rates and charges identified in Exhibit A. The total charged for monthly routine maintenance during the Extended Term shall be $125,316, payable monthly. An additional $10,000.00 contingency shall available for unanticipated expenses during the Extended Term, which shall be authorized in writing executed by the Executive Director of Parks, Recreation and Community Services or designated representative. The scope of services shall include maintenance of the Tierra Del Pampas exhibit. The total sum to be expended under this Second Amendment to Agreement shall not exceed $135,316 during the Extended Term. 2. Section 3, TERM, shall be extended for an additional one-year period, terminating at midnight on September 30, 2011, unless terminated earlier in accordance with Section 12 of the Agreement (herein referred to as the "Extended Term"). 3. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agreement on the date and year first written above. 25B-3 ATTEST: CITY OF SANTA ANA MARIA D. HUIZAR DAVID N. REAM Clerk of the Council City Manager APPROVED AS TO FORM: VISTA DEL VERDE JOSEPH W. FLETCHER Robert S. Johnson City Attorney President Tax ID No. 84-1672361 2 25B-4 Exhibit A Vista Del Verde Landscape Zoo Maintenance Costs $10,443 per month $125,316 per year (base agreement amount) $10,000 Contingency $135,316 Total 25B-5 25B-6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED ? As Recommended AGREEMENT WITH CORRECTIONAL ? As Amended MANAGED CARE MEDICAL CORPORATION El Ordinance on Reading El Ordinance on 2 2"d Reading FOR INMATE MEDICAL SERVICES ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager and the Clerk of the Council to execute the attached amendment to the agreement with Correctional Managed Care Medical Corporation to provide inmate medical services in an annual amount not to exceed $1,255,985, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On June 20, 2007, the City issued a Request for Proposals (RFP) for inmate medical services at the Santa Ana Jail. These medical services are required and governed by State law, under the California Department of Corrections Title 15 requirements. The RFP specified on-site medical services 24 hours a day, in addition to a doctor on call, for the Santa Ana inmates. Medical staff is required to conduct daily sick calls, dispense medication, as well as to assist in the intake of incoming inmates to assess for entrance acceptability. Additional services such as dental care, radiology, ophthalmology, OB/Gyn, psychiatric crisis intervention and emergency medical billing services are also required. Correctional Managed Care Medical Corporation (CMCMC) continues to be responsive to the specifications and City's requirements. On August 20, 2007, Council approved entering into a three-year agreement with two one-year renewal options with CMCMC. This would be the fourth year of the new contract. FISCAL IMPACT Funds in the amount of $1,046,655 are available in the Police Department, Detention Services fund (account no. 01114475-62300). APPROVED AS TO FUNDS AND A OUNTS: #au . Walt ers Francisco Gutierrez of Police Executive Director Police Department Finance & Management Services Agency 25C-1 25C-2 THIRD AMENDMENT TO AGREEMENT FOR THE PROVISION OF INMATE MEDICAL SERVICES BETWEEN CITY OF SANTA ANA AND CORRECTIONAL MANAGED CARE MEDICAL CORPORATION THIS THIRD AMENDMENT TO AGREEMENT, is entered into this day of , 2010, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City") and Correctional Managed Care Medical Corporation ("Contractor"). RECITALS: A. City and Contractor entered into Agreement #A-2007-193, dated August 20, 2007, for the Provision of Inmate Medical Services, hereinafter referred to as "said Agreement". .B. City and Contractor entered into a First Amendment and Second Amendment, which renewed the term of said Agreement for an additional one-year period each, and approved the maximum obligation to be expended for services during that renewed term. C. The Parties desire to renew the term of said Agreement for an additional one-year period, approve the maximum obligation to be expended for services during that renewed term and amend said Agreement to provide for an additional one-year extension. NOW, THEREFORE, in consideration of the mutual and respective promises, and subject to all the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Section 1, TERM, shall be amended to read: "This Agreement shall commence on September 1, 2007 and terminate August 31, 2008, unless terminated earlier in accordance with Section 15, below. At the exclusive option of the City, the term may be renewed for two additional one-year periods. Thereafter the parties may agree to extend the term for three additional one-year periods." 2. Section 1, TERM, shall be extended for an additional one-year period to August 31, 2011. 3. Section 3.a., COMPENSATION, shall be deleted in its entirety and replaced with the following: "a. The Total Annual sum to be expended under this Agreement for staffing, pharmaceutical, supplies and other services shall not exceed $1,255,985.00, during the 25C-3 renewal term, from September 1, 2010 to August 31, 2011. During that renewal term, the total payments for inmate medical services shall not exceed $1,155,985.00. An additional amount up to $100,000.00 shall be available for Additional Services as listed in Section 13 of the RFP, during the renewal term." 4. Except as hereinabove modified, all terms and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Agreement the day and year first above written, CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR DAVID N. REAM Clerk of the Council City Manager APPROVED AS TO FORM: JOSEPH W. FLETCHER City By:Att 7r), Melissa rosthwaite Deputy City Attorney CORRECTIONAL MANAGED CARE MEDICAL CORPORATION (Name) (Title) 25C-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED 0 As Recommended AGREEMENT WITH THE FIREMEN'S E3 Amended BENEVOLENT ASSOCIATION 0 O Or rdinance on Est Reading El Ordinance on 2ntl Reading Implementing Resolution Set Public Hearing For 7 CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Firemen's Benevolent Association regarding wages and other terms and conditions of employment. DISCUSSION The City and the Firemen's Benevolent Association (FBA) recently completed contract negotiations resulting in a four-year contract extension to the FY 2004-10 Memorandum of Understanding (MOU). The extension period covers July 1, 2010 through June 30, 2014. The provisions of this extended agreement are as follows: 1) Salary: 7/01/10-6/30/11 = 0% 7/01/11 - 12/31/11 = 0% 1/01/12 - 12/31/12 = 2.5% 1/01/13-6/30/13 = 4.0% 7/01/13-6/30/14 = 0% 2) Payment toward 3% at 50 Service Retirement Benefit: Effective January 1, 201 1 , "safety" employees contribute an additional .50%, for a total employee contribution of 1.43%. 3) Retirement Reopener: If the employer contribution rate for a fiscal year meets or exceeds 25%, then the provisions of Article 15.5 "Payment of 3% @ 50 Service Retirement Benefit" shall be reopened at the request of the City- 25D-1 Agreement with the Firemen's Benevolent Association September 20, 2010 Page 2 4) Overtime (Fire Suppression): Employees may choose monetary payment or take compensatory time for overtime worked and employees must place one overtime shift worked in a comp time bank during Fiscal Years 2010-11, 2011-12, 2012-13, and 2013- 14. Additionally, the City shall not backfill for employees taking compensatory time for the aforementioned fiscal years. 5) Staffing: FY 2010-11 and 201 1-12 = Reduce daily staffing from 66 to 63 positions FY 2012-13 and 2013-14 = Increase daily staffing from 63 to 64 positions 6) Paramedic School: During the term of the Agreement, when an employee attends medic school, the City shall not be required to "backfill" with overtime. 7) Vacation Cash Out: Employees shall defer longevity vacation cash-out for Fiscal Years 2010-11 and 2011-12. The ability to cash-out longevity vacation leave time shall be reinstated on July 1, 2012_ Allow carryover of up to three periods of regular and longevity vacation; maximum cash-out value is 160 hours per year. 8) Should any other bargaining unit receive a salary or benefit increase during the term of this Agreement that is of greater value than the combined value of the 4% and 2.5%, as described above under "salary", FBA employees shall be granted that salary or benefit equivalent. FISCAL IMPACT There are first-year savings to the City of $5,201,980, which includes deferral of salary increases and vacation cash out, and reduction in staffing. There are additional ongoing savings of $1,135,673 for staffing reductions and increased PERS contributions. APPROVED AS TO FUNDS AND ACCOUNTS: Kathie S_ Gonzalez Francisco Gutierrez Executive Director Executive Director Personnel Services Agency Finance & Management Services Agency 25D-2 FOUR-YEAR CONTRACT EXTENSION TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA FIREMEN'S BENEVOLENT ASSOCIATION FOR FISCAL YEARS 2010-11 through 2013-14 The City of Santa Ana (City) and the Santa Ana Firemen's Benevolent Association (SAFBA) have met and agreed to extend the 2004-10 Memorandum of Understanding (MOU) between the CITY and SAFBA for four (4) additional years. The initial MOU provisions, and the provisions outlined in the two-year Contract Extension for Fiscal Years 2008-09 and 2009-10, shall remain unchanged and in effect unless modified by this Contract Extension. The new expiration date of the MOU shall be June 30, 2014, and the MOU shall be amended as follows: AMENDED ARTICLE IV (new language in bold italics) 4.3 Salary Adjustments o F. Effective July 1, 2009, there shall be no salary increase for employees covered by this Agreement. Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute an additional 2.3% of their salary (for a total of 6.3%) toward the 2.7% at 55 retirement benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this additional 2.3% contribution shall be implemented through payroll deduction on a pre-tax basis. o G. Effective January 1, 2010, there shall be no salary increase for employees covered by this Agreement. H. Effeetiye July i, 2010, the base salary ef empleyees eeyered by this Agreem o shall be ineressed by eight (8) salary rate ranges (appreximetely H. Effective July 1, 2010, there shall be no salary increase for employees covered by this Agreement. 1€ffeetive January 12011, the 0 shall be ineressed by fiye (6) salary rate ranges (appreximetely FBA Contract Extension: 2010-2014 25D-3 Page 1 -3 I. Effective January 1, 2011, there shall be no salary increase for employees covered by this Agreement. J. Effective July 1, 2011, there shall be no salary increase for employees covered by this Agreement. K. E##eetive January 1, 2012, there by this Agreement. 9. Effective January 1, 2012, the base salary of employees covered by this Agreement shall be increased by five (5) salary rate ranges (approximately 2.5%). L. Effective July 1, 2012, there shall be no salary increase for employees covered by this Agreement. A Effective January 1, 2013, the base salary of employees covered by this Agreement shall be increased by eight (8) salary rate ranges (approximately 47o). N. Effective FY2013-14, there shall be no salary increase for employees covered by this Agreement. 0. Should any other bargaining unit receive a salary or benefit increase that is of greater value than the combined value of that set forth in "Han"g= "K" and W hereof during the term of this Agreement, the SAFBA shall be granted that- solar er benefit equiYalent as well the value of that additional salary or benefit. AMENDED ARTICLE IX (new language in bold italics) 9.5 Compensation for Overtime - Fire Suppression Personnel Assigned to the 24- Hour Duty Work Schedule. A. Overtime Duty: Emergency or Scheduled. A Fire Suppression pei-sennel employee who etpe is required to remain on active duty or who volunteers to work overtime following the scheduled termination of his or her tour of duty will be paid overtime at the rate of one and one-half times his or her regular hourly rate of pay for all such time worked in excess of his or her regularly scheduled workday or work schedule. 1. The regular hourly rate of pay will be computed by dividing the employee's regular monthly base rate of pay, plus pay additives, by 243. 2. FBA Contract Extension: 2010-2014 25D-4 Page 2 -4 A suppression employee shall have two options for compensation for overtime work: a) Monetary Payment - The employee may receive cash overtime pay at one and one-half times his or her regular hourly rate for all such time worked in excess of his or her regularly scheduled workday or work schedule. b) Compensatory Time - The employee may receive time off with pay at a rate of one and one-half hours for every hour of overtime worked. Compensatory time may be accumulated to a maximum of 144 hours. Compensatory time may be used in any hourly increment. Compensatory time off shall be taken at the discretion of the employee, provided it does not unduly disrupt the operations of the Fire Department. The requirement to backfill on overtime shall not unduly disrupt the operations of the Fire Department. subject- te the eperatienal needs and steffw@ The SAFBA agrees that the first 24-hour overtime shift worked by every suppression employee in Fiscal Years 2009-10, 2010-11, 2011-I2, 2012-13, and 2013-14 shall be taken as compensatory time and placed into their employees' Compensatory Time Banks. Should any employee exceed the maximum 144 hours allowed in the compensatory time bank, that time shall be paid in cash as overtime. The parties hereto further agree that the City shall not be required to backfill for employees taking compensatory time off, for a period of t we four (4) years, ending July 1, 2-044 2011. During that period, the SAFBA agrees to allow the Department to utilize step-up (move-up) for any staffing issues created by members' use of compensatory time. The parties agree that- these medifiestiens te Seetien 9.6 setisfy the entire furleugh equiyeleney burden te the SAFBA fer the term ef this Agreement. C. Staffing Levels. 1. , The minimum daily staffing level (without Battalion Chiefs) for Suppression and EMS shall be as follows: • July 1, 2010 through June 30, 2012: 63 personnel (reduction of one Captain, one Engineer and one Firefighter per shift) FBA Contract Extension: 2010-2014 25D Page 3 -5 • After July 1, 2012: 64 personnel (Whether the additional position is of the Firefighter, Engineer, or Captain rank shall be determined mutually by the parties). The hiring practice will be to hire Firefighters as follows: • juiy 1, 2004 thi-eugh june 30, 2006: When the steffing 'eye' i-eeehes 192 • juiy 1, 2006 thi-eugh june 30, 2007: When the steffing 'eye' i-eeehes 195 • juiy 1, 2007 thi-eugh june 30, 2008: When the steffing 'eye' i-eeehes 198 • July 1, 2010 through June 30, 2012: When If, during the term of this Agreement, the number of permanent employees assigned to Fire Suppression in ranks represented by the SAFBA drops to t-eeehes 189 or less , the City wi= 4 may then hire additional employees, provided, however, that the maximum number of te-e steffing 'eye' ef 195 permanent employees assigned to Suppression in ranks represented by the SAFBA shall, in no event, exceed 195. • After July 1, 2012: essigned te Suppi-essien, the City will then hii-e te e steffing 'eye' ef 198 If, during the term of this Agreement, the number of permanent employees assigned to Fire Suppression in ranks represented by the SAFBA drops to 192 or less, the City may then hire additional employees, provided, however, that the maximum number of permanent employees assigned to Suppression in ranks represented by the SAFBA shall in no event exceed 198. In the event there is a change in the deployment of apparatus, the City will increase staffing levels to support this deployment. For purposes of this Agreement, the City agrees to maintain the following deployment levels on duty daily: • July 1, 2010 through Tune 30, 2012: 14 Captains, 14 Engineers, 35 Firefighters or Firefighter/Paramedics, and 6 Staff Captains. • After Tuly 1, 2012: 14 Captains, 14 Engineers, 35 Firefighters or Firefighter/Paramedics, 6 Staff Captains, plus one additional position to be determined mutually by the parties (see V" above). 2. If, due to budget overruns or revenue shortfalls budget appropriations are insufficient to fund the minimum staffing level during the term of this Agreement, FBA Contract Extension: 2010-2014 25D-6 Page 4 -6 then this provision of the Agreement is subject to being reopened for negotiation. Between Ju/y 1, 2010 and June 30, 2014, any change shall be by mutual agreement of the City and FBA. 3. Effective July 1, 2010 through June 30, 2014: The parties agree that the City shall not be required to 'backfill" for up to one employee per platoon to attend Paramedic School. AMENDED ARTICLE X (new language in bold italics) 10.3 Cash Option - All m ems employees covered by this Agreement shall be given an option, twice per calendar year, concurrent with the longevity vacation cash out option, to receive cash compensation on a straight time basis in lieu of all or part of their holiday leave benefits set forth in section 10.2 above. Such option may be eliminated or modified at the discretion of the Fire Department or to the extent it is construed as overtime under Department of Labor guidelines implementing provisions of the Fair Labor Standards Act (FLSA). Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Year 2009-10 the employee's ability to cash out holiday leave time. The ability to cash out holiday leave time shall be re-instated July 1, 2010. During the term of this Agreement, such deferral shall not affect an employee's ability to be compensated for the accumulated holiday leave time upon separation from employment with the City, not to exceed a maximum of 216 hours. 10.5 A maximum of one (1) year of accrued Holiday leave time hours benefits may Abe carried over from one calendar year to the next. Effective July 1, 2010, employees choosing to cash out their holiday time may do so to a maximum Yalue of 1.33 x 108 hears, er of 144 hours per year. During the term of this Agreement, such limit on yearly cash-out shall not affect an employee's ability to be compensated for the accumulated holiday leave time upon separation from employment with the City, not to exceed a maximum of 216 hours. AMENDED ARTICLE XI (new language in bold italics) 11.2 Regular Vacation Period E. Computation of Regular Vacation 2. During the term of this Agreement, no employee may carry over from one calendar year to the next more than the equivalent of twe three (3) regular vacation periods and twe three (3) longevity vacation periods from the previous two years., end Yeeetie" FBA Contract Extension: 2010-2014 25D-7 Page 5 -7 A regular vacation period is defined as the maximum amount of vacation earned in a calendar year as provided in Subsection 11.2A above. 3. The time at which an employee shall take his or her vacation shall be determined by seniority within rank, with due regard for the needs of the Department. 4. The policy requiring minimum mandatory annual pre-selected vacations as set forth in the Manual of Operations (M.O.O.) shall be suspended for the term of this Agreement. Annual pre-selected vacation will be voluntary and a M.O.O. policy shall be drafted to reflect this change. Additionally, all employees shall be given the option to cancel and bank their unused Calendar Year 2009 pre-selected vacations (subject to maximum vacation accrual limitations). 11.3 Longevity Vacation. D. All m ems employees covered by this Agreement shall be given an option, twice per calendar year, concurrent with the holiday cash out option, to receive cash compensation on a straight time basis in lieu of all or part of their longevity vacation leave benefits set forth in Subsection A above. Such option may be eliminated or modified at the discretion of the Fire Department or to the extent it is construed as overtime under Department of Labor guidelines implementing provisions of the Fair Labor Standards Act (FLSA). Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Years 2009-10, 2010-11 and 2011-12 an employee's ability to cash out longevity vacation leave time. The ability to cash out longevity vacation leave time shall be re-instated July 1, 2012. This deferral shall not affect an employee's ability to be compensated for the accumulated longevity vacation leave time upon separation from employment with the City. Effective July 1, 2010, employees choosing to cash out their longevity vacation may do so to a maximum Yalue of 1.33 x 12 r of 160 hours per year. This cap on annual cash-out of longevity vacation shall not affect an employee's ability to be compensated for a// accumulated longevity vacation leave time upon separation from employment with the City. AMENDED ARTICLE XIV (new language in bold italics) 14.6 Retiree Health Insurance. Ci##e 9etebep 1, 2004;t-The City shall contribute each October 1 an amount equal to ° FBA Contract Extension: 2010-2014 25D Page 6 -8 , t-espeetiyely, the City she" eenti-ibute one and three quarter percent (1.75%) of the bargaining unit's salary base, including assignment pays to the fund. a fund for the purpose of providing premium reduction assistance. This program is for premium reduction only and is provided for bargaining unit employees retiring after July 1, 1989. The SAFBA shall be entitled to inspect/audit the financial affairs and status of the fund. The SAFBA agrees to defer the City's annual FBA Retiree Health Insurance Fund (Fund 84) October 2009 deposit to a date no later than March 31, 2010. Interest shall continue to accrue during this deferral period as stipulated by the Fund 84 Policy. The Association agrees to a loan of $700,000 from Fund 84 (FBA Retiree Health Insurance Fund) to Fund 11 (General Fund), effective November 1, 1996. The loan is to be for an indefinite term at an annual interest rate of 5.65%, and will be repaid when necessary, based on the fiscal condition of the FBA Retiree Health Insurance Fund. The City shall provide the Association an annual report on the status of Fund 84 and the status of the loan from Fund 84. As of July 1, 2010, the parties acknowledge that the entire $700, 000 loan is outstanding. The City and Association agree to form a joint labor-management committee for the purpose of formulating a plan by which the Association will take over the administration of this fund during the term of this Agreement. Once the Association accepts responsibility for the administration of the plan, the FBA will provide an independent actuarial valuation to the City on an annual basis. AMENDED ARTICLE XV - (new language in bold italics) 15.5 Payment of 3% at 50 Service Retirement Benefit. The eetue' st fei. the benefit shell be The City and Association agree that eligible employees will pay , met to eeed .93% of sefety pery~eal the City's employer contribution. Effective January 1, 2011, this employee contribution shall be increased to 1.43%. 15.6 Yearly Actuarial Valuation Fluctuations. CalPER5 provides the City with a yearly actuarial valuation informing it of its new employer contribution rate to be in effect July 1St of each year. The City and Association agree that the City's employer contribution rate will fluctuate from year to year based on this investment returns earned by the retirement system. The City agrees that current eligible safety employees paying to receive this benefit should also benefit from this yearly fluctuation in the City's annual actuarial valuation. ° FBA Contract Extension: 2010-2014 25D Page 7 -9 0 Should the City employer contribution rate meet or exceed 257. during the term of this Agreement, the City and Association agree to a reopener of this section, but there shall be no changes without the mutual written agreement of the parties. AMENDED ARTICLE XXVI (new language in bold italics) 26.1 The term of this Agreement shall be from July 1, 2010 through June 30, 2014. ARTICLE XXVII 27.0 RATIFICATION AND EXECUTION 27.1 The City and Association have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and the Association acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of the Association and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Agreement is hereby executed by the authorized representatives of the City and Association and entered into this 29*h 20th day of die September 2010. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: MAYOR Dated: By: CITY MANAGER Dated: By: EXECUTIVE DIRECTOR PERSONNEL SERVICES ATTEST: APPROVED AS TO FORM: CLERK OF THE COUNCIL CITY ATTORNEY FBA Contract Extension: 2010-2014 Page 8 25D-10 This Agreement has been ratified by the membership of the Santa Ana Firemen's Benevolent Association. Dated: SANTA ANA FIREMEN'S BENEVOLENT ASSOCIATION By: MARK EIDE, PRESIDENT FBA Contract Extension: 2010-2014 Page 9 25D-11 25D-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED ? As Recommended AGREEMENT WITH THE CONFIDENTIAL ? As Amended ? Ordinance on 1St Reading ASSOCIATION OF SANTA ANA ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO 2 FILE NUMBER CITY MANAGER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Confidential Association of Santa Ana regarding wages and other terms and conditions of employment. DISCUSSION The City and the Confidential Association of Santa Ana (CASA) recently completed contract negotiations resulting in a new two-year Memorandum of Understanding (MOU) covering July 1, 2010 through June 30, 2012. The provisions of this agreement are as follows: 1) Salary: 7/01/10 - 6/30/11 = 0% 7/01/11 - 6/30/12 = 4.5% total (2.5% effective 7/1 /11 and 2% effective 1/1 /12). 2) Payment toward 2.7% at 55 Service Retirement Benefit: Employees shall contribute an additional 1.0%, for a total of 7.3%, toward the City's "employer" rate. 3) Insurance Premiums: Employees shall contribute an additional $40/month toward medical insurance premiums and $10/month toward dental insurance premiums. Employees receiving "cash-back" in lieu of medical coverage will have their cash-back value decreased by $40/month. 4) Retiree Health Subsidy: Reduce FY 2010-11 deposit to CASA fund from 1.75% to 1% of base salary, plus premiums. 25E-1 Agreement with the Confidential Association of Santa Ana September 20, 2010 Page 2 5) Vacation Cash Out: Employees shall defer longevity vacation cash out for FY 2010-11 and 2011-12. Allow an additional carryover of 80 hours of longevity vacation. The maximum cash out value is 120 hours for FY 2012-13 and 2013-14. 6) Compensatory Time: Increase maximum comp time accrual to 160 hours from 80 hours. 7) Bilingual Pay Reopener: If the City modifies the amount of primary or secondary bilingual pay, CASA agrees to form a Joint Labor Management Team to discuss bilingual pay provisions. 8) Overtime Pay Reopener: Reopen the provision of the Agreement regarding overtime, if the City modifies the manner in which it pays overtime (pursuant to the Fair Labor Standards Act). FISCAL IMPACT There are first-year savings to the City of $489,120 for the reduction and deferral of salary increases and leave cash outs, and the increase in contributions for CalPERS and medical and dental insurance premiums. There are additional ongoing savings of $180,000 per year for the reduction of salary increases and the increase in contributions for CalPERS and medical and dental insurance premiums. APPROVED AS TO FUNDS AND ACCOUNTS: r Kathie S. Gonzalez Francisco Gutierrez Executive Director Executive Director Personnel Services Agency Finance & Management Services Agency 25E-2 MEMORANDUM OF UNDERSTANDING CITY OF SANTA ANA AND CONFIDENTIAL ASSOCIATION OF THE CITY OF SANTA ANA JULY 1, 2010 THROUGH JUNE 30, 2012 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) _MO1 2010 - 2012 Page 1 ABLE OF CONTENTS ARTICLE SUBJECT PAGE ARTICLE I RECOGNITION 4 ARTICLE II NON-DISCRIMINATION CLAUSE 5 ARTICLE III IMPLEMENTATION 6 ARTICLE IV ATTENDANCE, WORKDAY & WORKWEEK 7 ARTICLE V SALARIES 12 ARTICLE VI ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 18 ARTICLE VII OVERTIME 24 ARTICLE VIII TRAINING & EDUCATIONAL ASSISTANCE PROGRAM 28 ARTICLE IX HOLIDAYS 31 ARTICLE X VACATION 34 ARTICLE XI OTHER LEAVES OF ABSENCE 38 ARTICLE XII EMPLOYEE INSURANCE 45 ARTICLE XIII RETIREMENT 48 ARTICLE XIV SAFETY 50 ARTICLE XV GRIEVANCE REVIEW PROCEDURE 51 ARTICLE XVI ASSOCIATION RIGHTS 53 ARTICLE XVII DUES DEDUCTION & INDEMNIFICATION 56 ARTICLE XVIII CITY RIGHTS 57 ARTICLE XIX STRIKES & WORK STOPPAGES 59 ARTICLE XX LAYOFFS 60 ARTICLE XXI MISCELLANEOUS PROVISIONS 62 ARTICLE XXII SOLE & ENTIRE AGREEMENT 65 ARTICLE XXIII WAIVER OF BARGAINING DURING THE TERM OF THIS AGREEMENT 66 ARTICLE XXIV EMERGENCY WAIVER PROVISION 67 ARTICLE XXV SEPARABILITY PROVISION 68 ARTICLE XXVI TERM OF AGREEMENT 69 ARTICLE XXVII RATIFICATION & EXECUTION 70 EXHIBITS EXHIBIT A BASIC SALARY & WAGE SCHEDULE 72 EXHIBIT B ASSIGNMENT OF CONFIDENTIAL ASSOCIATION OF SANTA ANA FULL TIME CLASSIFICATIONS TO SALARY RATE RANGES 74 EXHIBIT C RESOLUTION NO. 81-75 76 EXHIBIT D 9/80 HARDSHIP CLAIM 88 Page 2 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) 25M'2010-2012 t ABLE OF CONTENTS (Alphabetical Order) SUBJECT ARTICLE PAGE ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES ARTICLE VI 18 ASSOCIATION RIGHTS ARTICLE XVI 53 ATTENDANCE, WORKDAY & WORKWEEK ARTICLE IV 7 CITY RIGHTS ARTICLE XVIII 57 DUES DEDUCTION & INDEMNIFICATION ARTICLE XVII 56 EMERGENCY WAIVER PROVISION ARTICLE XXIV 67 EMPLOYEE INSURANCE ARTICLE XII 45 GRIEVANCE REVIEW PROCEDURE ARTICLE XV 51 HOLIDAYS ARTICLE IX 31 IMPLEMENTATION ARTICLE III 6 LAYOFFS ARTICLE XX 60 MISCELLANEOUS PROVISIONS ARTICLE XXI 62 NON-DISCRIMINATION CLAUSE ARTICLE II 5 OTHER LEAVES OF ABSENCE ARTICLE XI 38 OVERTIME ARTICLE VII 24 RATIFICATION & EXECUTION ARTICLE XXVII 70 RECOGNITION ARTICLE 1 4 RETIREMENT ARTICLE XIII 48 SAFETY ARTICLE XIV 50 SALARIES ARTICLE V 12 SEPARABILITY PROVISION ARTICLE XXV 68 SOLE & ENTIRE AGREEMENT ARTICLE XXII 65 STRIKES & WORK STOPPAGES ARTICLE XIX 59 TERM OF AGREEMENT ARTICLE XXVI 69 TRAINING & EDUCATIONAL ASSISTANCE PROGRAM ARTICLE VIII 28 VACATION ARTICLE X 34 WAIVER OF BARGAINING DURING THE TERM OF THIS AGREEMENT ARTICLE XXIII 66 EXHIBITS: ASSIGNMENT OF FULL TIME CLASSES REPRESENTED BY CONFIDENTIAL ASSOCIATION OF SANTA ANA EXHIBIT B 74 BASIC SALARY & WAGE SCHEDULE EXHIBIT A 72 RESOLUTION NO. 81-75 EXHIBIT C 76 9/80 HARDSHIP CLAIM FORM EXHIBIT D 88 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 3 25E-5 ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the provisions of the Meyers-Milias-Brown Act, Government Code Section 3500, et sue., the City of Santa Ana (hereinafter called "the City") has recognized the Confidential Association of Santa Ana (hereinafter called "CASA") as the majority representative of the bargaining unit which includes all full-time employees employed by the City of Santa Ana in classifications heretofore designated as "confidential" and which are listed in Exhibit B of this Agreement. 1.2 Notwithstanding the following provisions of this Memorandum of Understanding, the parties agree that they have intended nothing herein to entitle, alter or award Civil Service rights or privileges to any employee represented by CASA who is in the Excepted (Exempt) Service of the City of Santa Ana. 1.3 During the term of this Agreement, no substantive issue of representation shall be raised contrary to this Agreement except as provided in Resolution No. 81- 75, the Employer-Employee Relations Resolution of the City of Santa Ana (refer to Exhibit C). 1.4 The term "employee" or "employees" as used herein shall refer only to full time CASA employees of the City, in the employee classifications listed in the attachment shown as Exhibit B of this Agreement, as well as such classifications as may be added hereinafter via Council resolution. 1.5 It is the purpose of this Memorandum of Understanding to promote and provide for harmonious relations, cooperation and understanding between the City and employees covered by this Memorandum. It sets forth the full and entire understanding reached in good faith negotiations regarding the wages, hours, terms and conditions of employment of employees covered by this Memorandum of Understanding which the parties intend to submit jointly and recommend for approval to the City Council of the City of Santa Ana. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 4 25E-6 ARTICLE II 2.0 NON-DISCRIMINATION CLAUSE 2.1 The City and CASA agree that they shall not discriminate against any employee because of race, color, gender, sexual orientation/association or perception, age, national origin, ancestry, disability, medical condition, marital status, pregnancy, childbirth or related medical conditions, genetic information, political or religious opinions or affiliations, or CASA membership. The City and CASA shall reopen any provision of this Agreement for the purpose of complying with any order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this Agreement in compliance with State or Federal anti- discrimination laws. 2.2 Whenever reference is made to the masculine gender, it shall be understood to include the feminine gender, unless expressly stated otherwise. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page S 25E-7 ARTICLE III 3.0 IMPLEMENTATION 3.1 The parties agree that this Memorandum of Understanding shall not be binding upon the parties until said City Council: A. Acts, by majority vote, to formally t-e approve said Memorandum of Understanding; and B. Acts to appropriate the necessary funds required to implement the provisions of this Memorandum of Understanding that require funding. 3.2 Notwithstanding the foregoing, in the event the City Council fails to take all actions necessary to implement this Memorandum of Understanding in a timely manner, the parties understand that they may mutually agree to implement appropriate provisions of this Memorandum that do not require specific approval by the City Council. 3.3 Implementation shall be effective as of the date the memorandum of understanding is formally approved by the City Council. If the parties fail to agree to implement provisions of this Memorandum not requiring City Council approval, then negotiations shall resume upon the request of either party. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 6 25E-8 ARTICLE IV 4.0 ATTENDANCE, WORKDAY & WORKWEEK 4.1 Attendance. Employees covered by this Agreement shall be in attendance at their work during hours prescribed by the Department Head or his/her designee(s) and shall not absent themselves without approval of the Department Head or his/her designee(s). 4.2 Hours of Work. Eight (8) hours of work shall constitute a normal workday and forty (40) hours of work shall constitute a minimum workweek, except for employees for whom special schedules have been approved by the City Manager. A. 4/10 Work Schedule. The Department Head, with the approval of the City Manager, may assign employees to a workweek consisting of four (4) ten-hour (10-hour) days with an additional one-half (1 /2) or one (1) hour for unpaid lunch, as negotiated with CASA. The assigned employee shall work four (4) ten (10) hour days and shall have three (3) consecutive days off in a workweek. Upon mutual agreement between the supervisor and employee, the employee may waive his or her right to three (3) consecutive days off in a workweek. The regular workweek shall consist of forty (40) hours. A regular day off shall consist of ten (10) hours. B. 9/80 Work Schedule. The work schedule described below is known as the "9/80" work schedule. The "9/80" work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. Employees shall be permitted to work a "9/80" work schedule when authorized by the Department Head and approved by the City Manager. A departmental work unit shall not be permitted to work this schedule if in the discretion of the Department Head and City Manager, the "9/80" work schedule may reduce service to the public. 1. "9/80" Work Schedule Defined. The "9/80" work schedule shall be defined as working eighty hours (80) over nine (9) days in a two-week period. An employee shall work eight (8) days for nine (9) hours per day and one day for eight (8) hours, excluding a one-hour lunch during each work shift, totaling forty (40) working hours in each FLSA work week. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 7 25E-9 a. The Work Week Period. The forty (40) hour FLSA work week period shall be defined as the work period starting from Friday at mid-shift to Friday at mid-shift. No employee working the "9/80" work schedule shall be able to flex their Friday start time nor the time they take their lunch break, which shall occur in the middle of the day on Fridays. b. The 9/80 Work Period. The "9/80" two-week work period for employees starts Friday mid-shift and continues for fourteen (14) days until Friday mid-shift. During this period, each week is made up of four (4) nine-hour work days (thirty-six hours) and one (1) four-hour Friday for a total of forty (40) work hours in each workweek (e.g., the Friday is split into four (4) hours for the first shift, which is charged to work week one and four hours (4) for the second shift, which is charged to work week two). C. Work Schedule Changes. Employees shall not be permitted to change their work schedules without prior approval of their supervisor and Department Head. d. Modifications of the FLSA Work Week. Modifications of the FLSA work week period are not permitted unless authorized by the Executive Director of Personnel Services and the City Manager. e. Emergencies. All employees on the "9/80" work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions that, in the opinion of the City Manager, Department Head or designee, may require such service from any of said employees. 4.3 9/80 Schedule Hardship Claims. Any employee having been authorized to work the "9/80" work schedule who subsequently encounters a personal hardship with his/her work hours may request an accommodation from his/her Department Head. A "hardship request" shall be limited to an employee's authorized hours of work. An accommodation shall be considered only after the employee has exhausted all other personal options to resolve the hardship. If the employee is unable to resolve his/her problem, the employee may request an accommodation from their Department Head by submitting a hardship claim. The Department Head may authorize an accommodation CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 8 25E-10 after reviewing said claim or assign a manager to investigate and recommend a resolution of the hardship claim. The manager may recommend the following: A. Approve an appropriate flex schedule that does not disrupt the department's ability to deliver its services or that does not create disruption in the work unit. B. Disapprove the employee's proposed solution to resolve the hardship. C. Reassign the employee to a 5/40 work schedule. The Department Head may accept any one of the manager's recommendations or advance his own to resolve the hardship. D. Hardship Claims. The following process shall apply to CASA employees on a 9/80 schedule with hardship concerns: 1. Employees shall be required to explore and exhaust all personal options to resolve the hardship. The employee's efforts to resolve his/her personal situation must be explained on the form. 2. An employee claiming an ongoing hardship due to the 9/80 work schedule should submit a hardship claim form (Exhibit D of this MOU) to the Department Head through his/her manager. The Department Head may authorize an accommodation after reviewing said claim or may assign a manager to investigate and recommend a resolution. 3. If, according to the employee, the hardship claim was not resolved through the Department Head's recommendation, the employee may submit the claim form to the Personnel Services Department, M-24. A Hardship Committee shall be established to assist in the resolution of hardship claims and meets on an as- needed basis. The Hardship Committee will review the claim and make a recommendation to the Department Head. 4. Hardship claims due to health reasons, either the employee's or a dependant, must be supported by medical verification signed by the employee's or dependants' private physician. 5. In cases where a hardship exists, as determined by the Hardship Committee, efforts will be made to identify alternatives with due regard to the employee's request but, with particular concern CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 9 25E-11 to the needs of the department. The Department Head has final approval on any work schedule adjustment. 6. If transferred or reassigned to a different department and a hardship continues, a new hardship claim must be filed with the new Department Head. 7. It is the employee's responsibility to notify his/her supervisor if the hardship terminates and return to the normal 9/80 work schedule. Inconvenience or preference does not constitute a hardship. 4.4 Overtime Defined. All FLSA nonexempt employees working under the "9/80" work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA work week as required under FLSA. Employees are required to obtain supervisor authorization before working any overtime. A. Overtime Compensation. Overtime work, and compensation for same, shall follow the provisions stated in Article VII - Overtime. B. Compensatory Time. Terms and compensation for Compensatory Time shall follow the provisions stated in Article VII - Overtime. 4.5 Leave Benefits. When an employee is off on a scheduled workday under the "9/80" work schedule, nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance; if the day off is a Friday, then eight (8) hours shall be charged. When an employee is off on a scheduled workday under the "4/10" work schedule, ten (10) hours of eligible leave per workday shall be charged against the employee's leave balance. All leaves shall continue under the current accrual, eligibility, request and approval requirements. A. Vacation Leave. Provisions for vacation leave are found in Article X of this MOU. B. Sick Leave. Provisions for sick leave are found in Article XI of this MOU. C. Bereavement Leave. Provisions for bereavement leave are found in Article XI of this MOU. D. Holidays. Provisions for holiday leave are found in Article IX of this MOU. 1. For a recognized City holiday, eight (8) hours, as stated in Article IX (Holidays), are earned for each holiday. For the charging of CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 10 25E-12 hours on a scheduled holiday, the employee must use nine (9) hours of holiday time off for a nine (9) hour workday or eight (8) hours holiday time off for a Friday. 2. If a holiday falls on an employee's Friday off, the employee must then take their holiday off before or after the regular holiday as their holiday off with supervisor and Department Head approval. If the employee cannot take their holiday off before or after the regular scheduled holiday off the employee shall bank eight (8) hours of holiday leave to be used at a later date with the supervisor's approval. E. Jury Duty Leave. If an employee is called to serve on jury duty during a normal Friday off, or a Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during the employee's day off work; therefore, the employee shall receive no added compensation. See Article XI, Section 11.4, Jury and Witness Leave. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 11 25E-13 ARTICLE V 5.0 SALARIES 5.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all full-time personnel who are now employed or shall in the future be employed in any of the designated classifications of employment represented by CASA as listed in this Agreement and its attachments. 5.2 Salary Schedule. The basic salary schedule, attached hereto in a matrix format as Exhibit "A," and made a part hereof as though set forth in full herein, provides numerous salary rate ranges, each comprised of six (6) steps or rates of pay. The respective rate ranges are identified by a three digit number. The steps within each range are identified by the letters "AA" through "E" inclusive, with Step "AA" being the lowest step in the range. The purpose of each step and the length of service required for advancement to the next higher step within a particular salary rate range are set forth in Exhibit "A." The assignment of classifications to salary rate ranges for full time personnel is listed in Exhibit B, which is attached and made a part hereof as though set forth herein. 5.3 Salaries. A. Effective July 1, 2010, CASA members are scheduled to receive a 4.0% salary increase. CASA agrees to defer this scheduled increase until July 1, 2011. B. Effective January 1, 2011, CASA members are scheduled to receive a 2.5% salary increase. CASA agrees to defer this scheduled increase until January 1, 2012. C. Effective July 1, 2011, the base salary of classifications listed in Exhibit B shall be increased by five (5) salary rate ranges (approximately 2.5%). D. Effective January 1, 2012, the base salary of classifications listed in Exhibit B shall be increased by four (4) salary rate ranges (approximately 2.0%). 5.4 Application of Basic Compensation Plan. The salary rate ranges discussed in Section 5.2 and attached hereto as Exhibit "B" are monthly salary rate ranges. All full-time employees working in classifications of employment covered by this Agreement shall be compensated at a monthly rate, except CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 12 25E-14 that an employee hired for temporary work in a position which has an anticipated duration of less than six (6) months shall be paid at a rate per hour for actual time spent in the performance of the duties of his or her employment. The regular rate of pay shall be computed as provided for by the Fair Labor Standards Act (FLSA). Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by dividing the monthly salary rate by 173.33. In determining the hourly rate as herein provided, computation shall be made to the nearest whole cent and a computation resulting in an even one-half cent shall fix the rate at the next higher whole cent. 5.5 Probation. Except for employees in the Excepted Service as defined by the City Charter, and employees re-employed from re-employment lists, the probationary period shall be one (1) year from the date of appointment from an open eligible list (new hire) or a reappointment eligible list (rehire) and six (6) months from the date of appointment from a promotional eligible list. 5.6 Be_ inning Rates. A new employee of the City of Santa Ana shall be paid the rate shown as Step "AA" in the salary rate range allocated to the classification of employment for which he or she has been hired. In special instances where such new employee possesses unique and exceptional educational training and/or experience qualifications, the Department Head, under whom the employee will serve, may submit a written request and justification to the City Manager for authorization to place such new employee on Step "A," "B," "C," or "D" within the allocated salary rate range, provided that such employee shall be assigned such salary step upon the commencement of his or her service in the classification of employment to which the salary rate range applies and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article. 5.7 Service. The word "service" as used in this Agreement shall be deemed to mean continuous, full-time service in the classification in which the employee is being considered for salary advancement, service in a higher classification or service in a classification allocated to the same salary rate range and having generally similar duties and requirements. Employees hired after the first (1 st) working day of the month shall not be credited with "time in service" for that month when determining the length of service required for salary step advancement. A lapse of service by an employee for a period of time longer than thirty (30) calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purposes of this Agreement, and such employee reentering the service of the City shall be considered as a new employee, CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 13 25E-15 except when he or she is being or will be reappointed as provided in the Santa Ana Municipal Code (SAMC), Section 9-1 14 within one (1) year and placed in the same salary step in the appropriate salary rate as he or she was at the time of termination of employment. "Resignation, quit, or discharge" for purposes of this section shall mean separating from full-time City employment altogether, not leaving one position to accept appointment to another position in an unrelated classification outside the career ladder. 5.8 Advancement within Ranges. A. Length of Service Advancements. After the salary of an employee has been first established and fixed under this plan, such employee shall be advanced from Step "AA" to Step "A," from Step "A" to Step "B," from Step "B" to Step "C," or from Step "C" to Step "D," whichever is the next higher step to that on which the employee has been previously paid, effective the first day of the month following the date of completion of the length of service required for such advancement as provided in Section 5.2 and Exhibit A hereof. B. Merit Advances. An employee shall be considered for advancement from Step "D" to Step "E" upon the completion of the required length of service as provided in Section 5.2 and Exhibit A hereof; the effective date of such merit increase, if granted, shall be on the first (1 st) day of the month following the completion of such required length of service. Advancement to Step "E" may be granted only for continued meritorious and efficient service and continued improvement by the employee in the effective performance of the duties of his or her position. Such merit advancement shall require the following: 1. There shall be on file in the office of the Executive Director of Personnel Services a copy of each periodic performance appraisal report required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. 2. The Department Head, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Department Head as to such recommendations and of the reasons therefore. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 14 25E-16 3. No advancement in salary above Step "D" shall become effective until approved by the City Manager, except when placement on a salary step above Step "D" results from promotion under the provisions of Section 8 of this Article. C. Length of Service Required When Advancement Denied. When an employee has not been approved for advancement to merit Step "E," he or she may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for such advancement after the completion of six (6) months of additional service. This reconsideration shall follow the same steps and shall be subject to the same actions as provided in subparagraphs B.2 and B.3 of this section, supra. 5.9 Reduction in Salary Steps. Any employee who is being paid at merit Step "E" may be reduced to Step "D" of the appropriate salary range, upon the recommendation of the Department Head, and the approval of the City Manager. Procedure for such reduction shall follow the same procedure as outlined for merit advancements in Section 5.8 above, and such employee may be considered for readvancement under the same provisions as contained in Subsection C of Section 5.8 above. 5.10 Promotional Salary Advancement. When an employee is promoted to a position in a higher classification from a position in a lower classification in the same occupational career ladder, he or she shall be reassigned to Step "AA" in the appropriate salary rate range for the higher classification; provided, however, that if the base salary step currently being paid such employee is already equal to or higher than said Step "AA," he or she shall be placed in the lowest step in the appropriate salary rate range as will grant that employee a minimum increase of one (1) salary step (approximately 5%) over his or her current base salary step, inclusive of lead pay, and exclusive of any other assignment or special pay additive or additives such as bilingual pay, shift differential, special skill pay or the like, except when placement at "E" step will not be sufficient to provide a one (1) salary step (approximately 5%) increase. 5.11 Demotion. When an employee is demoted to a position in a lower classification, his or her salary rate shall be fixed in the appropriate salary rate range for the lower classification in accordance with the following provisions: A. The salary rate shall be reduced by at least one (1) salary step (approximately 5%). B. The new salary rate must be within the appropriate salary rate range. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 15 25E-17 C. The new salary rate shall not be higher than the salary step to which the employee would have been entitled had his or her service time in the higher classification been spent in the lower classification. D. If the salary rate recommended by the Department Head is lower than the maximum step permissible under Subsection C above, such recommendation shall be considered a reduction in pay in addition to the demotion and shall be handled in accordance with the provisions for salary reductions in Section 5.9 above. 5.12 Reallocation of Salary Rate Ranges. Any employee who is employed in a classification which is reallocated to a different salary rate range from that previously assigned shall be retained in the same salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step. 5.13 Request for Classification Review. Any employee who, for a continuous period exceeding six (6) months, believes he or she is regularly and consistently performing duties and/or responsibilities not in conformance with their classification concept or, duties and/or responsibilities of another classification, may request a classification review of their position through their supervisor to the Department Head. The employee must submit their request on a form specified by the Executive Director of Personnel Services, outlining in writing how they believe their current duties and/or responsibilities differ from their classification concept. A. The Department Head shall review the employee's submitted request and within sixty (60) days shall make one of the following determinations: 1. Will support the employee's request. a. If the Department Head supports the employee's request for a classification review, he or she shall forward the request to the Executive Director of Personnel Services along with justification for support of the employee's request. b. The Department Head shall notify the employee that his or her request has been submitted to the Executive Director of Personnel Services. 2. Will not support the employee's request. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 16 25E-18 a. If the Department Head does not support the employee's request for a classification review, he or she shall notify the employee of this decision in writing and set forth the basis for the decision. b. If the Department Head does not support the employee's request, but agrees that some of the duties and/or responsibilities being performed by the employee are those of a higher level City classification, he or she can do the following: 1. Return the employee to performance of the duties and/or responsibilities of their proper classification. 2. Eliminate the higher duties and/or responsibilities being performed by the employee, for which the City has agreed are those for which it shall provide higher compensation. B. Any employee request for classification review approved by the Department Head shall be forwarded to the Executive Director of Personnel Services. The Executive Director of Personnel Services shall confirm receipt of the request in writing to the employee. Within sixty (60) days of receipt of the request, the Executive Director of Personnel Services shall notify the employee and Department Head of the decision as to whether a study will be conducted. If the Executive Director of Personnel Services determines that a study is appropriate, the Executive Director of Personnel Services shall so notify the employee and the Department Head in writing and shall provide the employee and Department Head with an approximate start date for the study. C. All determinations of the Department Head and the Executive Director of Personnel Services are final. D. All studies and study findings shall require City Manager approval before proceeding. E. All recommendations resulting from study findings require the approval of the City Council and shall be implemented in accordance to the City's Civil Service rules. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 17 25E-19 ARTICLE VI 6.0 ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 6.1 Assignment Pay Differential. Assignment pay differentials, as listed herein and throughout the Agreement, shall, in each case, be added individually and separately to the employee's base salary. In no event shall one assignment pay differential be added to the employee's base salary as a basis for the calculation of an additional pay differential. A. Employees who are assigned by a Department Head, with the prior approval of the City Manager, to a position requiring the ability to take dictation at a rate of 70 words per minute or better on a regular basis or as an essential or integral element of the work of the position, shall be paid a monthly differential of sixty dollars ($60) above his or her base monthly salary step for each full month of such assignment. B. Full-time incumbents in any classification listed in this Agreement who are required by a Department Head or their designee to perform the duties of a Notary Public for the City, in addition to regular duties, shall be paid a monthly pay premium of forty dollars ($40) above his or her then current base monthly salary step. 6.2 Lead Pay. Incumbents in any classification listed in this Agreement who are regularly and continuously assigned to lead a functional unit which includes two (2) or more positions in the same or lower classifications as the incumbent may be compensated for said duties upon mutual agreement of the City and CASA and approval of the Department Head and the Executive Director of Personnel Services. This compensation shall be referred to as "lead pay." In addition, incumbents in any classification listed in this Agreement who are regularly and continuously assigned to perform lead supervisory responsibilities shall receive lead pay compensation at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step: 6.3 Bilingual Pay. An employee who is assigned by a Department Head or his or her designee to a position requiring bilingual capability in both English and either Spanish, Samoan, Vietnamese or other languages designated by the City Manager, shall be paid a monthly assignment pay differential in accordance with the criteria and amounts set forth below: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 18 25E-20 A. The employee must be certified by the Executive Director of Personnel Services, or his or her designee, as having satisfactorily demonstrated conversational fluency in both English and the second language for any position requiring bilingual capacity. B. Positions where it has been determined by the Department Head that bilingual proficiency is essential to carry out duties and responsibilities of a critical and/or emergency nature without ready access to backup assistance, or positions where bilingual public contact is a major, essential or integral element of the work being performed, shall be designated as Primary Bilingual Assignments. A qualified incumbent of such position shall be paid a monthly differential of one hundred seventy-five dollars ($175) above his/her then-current base monthly salary step. C. Positions where it has been determined by a Department Head that regular and frequent bilingual usage is necessary to the performance of duties, but not a major, essential or integral element of the work, shall be designated as Secondary Bilingual Assignments. A qualified incumbent of such position shall be paid a monthly differential of forty dollars ($40) above his or her base monthly salary step for each full month of such assignment. D. The number of such Primary and/or Secondary Bilingual Assignments shall be no larger than the requirements of the department as determined by the Department Head and the City Manager. E. There shall be periodic recertification of such bilingual capability. F. All assignments to positions set forth in this Article shall be made or revoked at the discretion of the Department Head. G. If the City modifies the amount of bilingual pay for any other bargaining unit during the term of this agreement, CASA agrees to form a Joint Labor Management (JLM) committee with the City to review bilingual pay provisions and assignments (see also Article XXI, Section 21.3.13). 6.4 Shift Differential. A. Generally. An employee in a classification represented by CASA who is continuously and regularly assigned to a schedule of work which requires that he or she actually work a minimum of four and one-half (41/2) hours between the hours of 5:00 p.m. and 7:00 a.m., shall be paid a shift differential for his or her entire work shift at a rate set ten (10) CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 19 25E-21 salary rate ranges (approximately 5%) higher than his or her then- current base monthly salary step. B. Standby Pax. Employees who are released from active duty but who are required by their department to leave notice where they can be reached and be available to return to active duty when required by the department at any time other than their regularly scheduled working hours, shall be said to be on standby duty. Effective no later than the first (1 st) day of the second (2nd) payroll period following Council approval, such employees shall receive two hundred dollars ($200) per week when assigned to be on standby duty. 6.5 Temporary Upgrade Assignment Pax. In order to provide an equitable method of compensating employees who are assigned temporarily to a vacant, full-time, budgeted, higher-level position the following shall apply: A. General Guidelines 1. Temporary Upgrade Assignments shall be limited to the temporary filling of vacant, full-time, budgeted positions due to the termination, promotion or authorized long-term absence of the incumbent. A temporarily vacant position need not be a position without an incumbent. 2. Each such assignment may be terminated at any time, but in no event shall such assignment continue beyond one hundred eighty (180) days of such assignment. 3. Prior to recommending to the City Manager that a pay differential for a Temporary Upgrade Assignment be granted, the Department Head shall make the following determinations: a. The duties and responsibilities of the position to be filled are of such nature that they cannot remain unassigned pending the return to duty of the absent incumbent or preparation of an eligible list, whichever is applicable. b. It is not practical to assign the duties of the vacant position to any other employee or employees in the same or higher classification. 4. The City Manager or his/her designee must give written approval of all Temporary Upgrade Assignments involving an increase in pay for the appointee. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 20 25E-22 B. Eligibility. 1. Regular, full-time employees shall be eligible to receive Temporary Upgrade Assignment Pay if the work assumed encompasses the majority of the typical duties and responsibilities of the vacated higher-level position, and the employee meets the qualifications outlined in B.2, below. A. Employees in the following categories shall not be assigned to Temporary Upgrade work unless specifically authorized by the City Manager: 1) Non-permanent employees (Probationary, Part- time, Seasonal, etc.). 2) Employees performing work above their regular classification in a training capacity. 2. To qualify for temporary upgrade assignment pay, employees must serve in an acting capacity in the higher-level classification as follows: o ten (10) consecutive working days of eight (8) hours each; or o eight (8) consecutive working days of ten (10) hours each for employees working an alternative work schedule; or o any combination of consecutive working days consisting of nine (9) hours each and one (1) working day consisting of eight (8) hours, for a total of 80 hours of work for employees working the "9/80" work schedule; or a. A permitted absence of two working (2) days or less during such ten (10) day period shall not be deemed to void such consecutive service; however, the days of absence shall not be counted in the computation of eligibility to qualify for the temporary upgrade assignment pay. b. In computing qualifying service rendered, only full days of actual duty shall be included, and partial days shall not be combined to make full days unless they are normally granted holiday hours. Normally granted holidays will be included in computing actual duty days. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 21 25E-23 C. Employees must requalify for a Temporary Upgrade Assignment if the employee has not worked in this specific upgrade assignment for a period of eighteen (18) consecutive months or longer. The employee shall only be considered to work in a higher classification if such work is duly and specifically authorized by the employee's Department Head. 3. Whenever practicable, the appointing authority shall rotate Temporary Upgrade Assignments among all qualified employees. C. Payment. 1. On the next consecutive working day following the qualification period for temporary upgrade that an employee has been serving in a Temporary Upgrade Assignment, and for each additional consecutive working day the employee so serves, he or she shall receive the beginning rate (Step "AA") assigned to the higher classification or the lowest rate in that range which is at least ten (10) salary rate ranges (approximately 5%) higher than the current base salary rate he or she normally receives, (inclusive of lead pay and exclusive of any other assignment or special pay additive or additives) whichever is greater, except when placement at "E" step shall not be sufficient to provide the ten (10) salary rate range increase. During the term of this Agreement, if an employee has worked in a higher classification for the required minimum number of consecutive work days to qualify for temporary upgrade assignment pay, the employee shall thereafter receive upgrade pay for each day the employee is assigned to work in the higher classification during the term of this Agreement. 2. Assignment or special pay additives, such as bilingual pay, shift differential, special skill pay, etc., paid to an employee prior to becoming eligible for Temporary Upgrade Assignment Pay, shall not be considered in computing the amount of higher pay to which he or she is entitled in Subparagraph 6.5C above. If the special circumstances upon which said additive is based are also applicable to the Temporary Upgrade Assignment and the employee remains eligible for such pay while in the temporary upgrade position, this amount shall be added to the new salary rate range. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 22 25E-24 3. Temporary Upgrade Assignments which entail moving an employee into a classification represented by an employee unit other than that which represents his or her permanent classification shall not include any change in fringe benefits for the affected employee. 4. While working in a Temporary Upgrade Assignment, an employee shall continue to accrue, and have recorded, general, special or normal salary step increases in the employee's permanent position; however, such salary increases shall be paid only to maintain the minimum five percent (5%) differential above the salary to which an employee is entitled in his or her permanent position. 6.6 All assignments of personnel to positions set forth in Sections 6.1 through 6.5 above shall be made or revoked at the discretion of the Department Head. 6.7 Career Development Incentives. Employees hired in a classification which requires a specialized certificate as a prerequisite to hiring, either upon appointment or by the time of the employee's passage of probation ("regular appointment"), shall not be eligible for career incentive pay for that prerequisite certificate. However, they shall be eligible for career incentive pay for any other certificates approved for their classification. In no event shall the application of this Career Development Incentive provision result in an individual being eligible to earn more than twenty-five (25) salary rate ranges (approximately 12.5%) above his or her current monthly base salary step. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 23 25E-25 ARTICLE VII 7.0 OVERTIME 7.1 General Policy for Overtime Work. When it shall be determined to be in the public interest for employees to perform overtime work, or in an emergency situation, the City Manager, the Department Head, or a duly authorized representative of the City Manager or the Department Head, may require an employee to perform overtime work. 7.2 Definition. Overtime work for those on a 5/40 work schedule is defined as: A. That authorized or required time worked in excess of the normal workday, tour of duty, or workweek schedule for the particular classification and organizational unit of an employee. A workweek is a fixed and regularly recurring period of 168 consecutive hours - 7 consecutive 24-hour periods - as designated by the appointing authority. An employee's work schedule within the workweek shall not be changed to avoid payment of overtime; provided, however, nothing shall abridge management's right to establish and change work schedules and assignments in accordance with the rights of management contained in Article XVIII, infra. B. Work on observed holidays or work on any regularly scheduled non- work day of which there shall be two (2) per week, if work on any regularly scheduled non-work day is worked at management's direction. 7.3 Computation of Forty (40) Hour Workweek. In computing the forty (40) hour workweek, the following type of work hours shall be included in the computation: actual work time, jury/witness leave, sick leave and bereavement leave. Any combination of these work hours in excess of eight (8) hours per day (except for employees on a 4/10 or the 9/80 work schedule) or forty (40) hours per week shall entitle the employee to overtime compensation. Paid time off for vacation leave, all unpaid leave, Association release time and compensatory time off shall not be credited towards the forty (40) hour workweek. No employee shall work overtime hours unless authorized by the department head or his/her designee. 7.4 All FLSA nonexempt employees working under the "9/80" work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA work week as required under FLSA. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 24 25E-26 Should the City modify the manner by which it pays overtime (FLSA) to members of other miscellaneous bargaining units, CASA agrees to reopen this topic for discussion. 7.5 Compensation for Overtime. A. The preferable method by which overtime shall be compensated is by monetary payment, at one and one-half (1.5) times the employee's regular rate of pay, subject to the provisions of Subsection "C" below. B. Should the Department Head determine that the best interests of the City will be served thereby, he or his designee may permit an employee to be compensated for overtime work by taking paid compensatory time off in lieu of monetary compensation. C. Employees shall have the option with Department Head approval to convert a maximum of eighty (80) hours of time and one-half paid overtime (in compensation for 53 1 /3 [fifty-three and one-third] overtime hours worked) to time and one-half compensatory time off benefits. Such compensatory time off shall be taken at the discretion of the employee when requested at least 72 hours in advance, provided it does not unduly disrupt the operations of the agency. If the Department Head or his or her designee subsequently denies the requested compensatory time off the employee and department shall mutually agree on a future date within one year when the employee can use the paid compensatory time off. If the requested compensatory time off is not used within that one year, such compensatory overtime will be paid off in cash. D. The comp time bank for employees covered by this Agreement has a maximum accrual limit of one hundred and sixty (160) hours. E. Because each hour of overtime worked is programmatically accrued on a time and one-half basis, compensatory time off shall be taken, and monetary payment shall be paid, on a straight-time basis. Also, upon termination, any earned, unused compensatory time off ("time- on-the-books") shall be paid on a straight-time basis. F. Time off with pay to compensate for overtime worked may be taken in increments as small as a half (1/2) hour. G. If compensatory time off is used in excess of that available, such excess compensatory time off shall first be deducted from any available vacation benefits, after which it shall finally be deducted from the next scheduled wage or salary payment. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 25 25E-27 H. Time off with pay as compensation for overtime may not be granted or taken in advance of the overtime work for which the time off compensates. Before compensatory time off with pay may be taken, as herein provided, the overtime worked must have been recorded on official payroll records at or about the time the overtime work was performed. In the absence of such recording, no compensatory time off with pay will be permitted. 1. Upon an employee's appointment to a position in which overtime may not be earned or upon an employee's separation from employment with the City by resignation, retirement, layoff or otherwise, he or she shall forthwith be compensated for any overtime accumulated to the time immediately preceding such promotion or separation. 7.6 No Effect on Other Benefits. Overtime work shall not apply to the earning of employee benefits (retirement, holidays, vacation accrual, sick leave accrual and employee insurance benefits), toward the completion of probationary period, or to progression within salary rate range. 7.7 Overtime Work to be Minimized. To the extent that he or she is reasonably able to do so, the Department Head or his or her designee shall arrange work programs to minimize overtime work. Necessary overtime work shall be apportioned among employees of like classification and assignment. 7.8 Call-Back Duty. Any employee covered by this Agreement who is recalled to active duty from off-duty, shall be entitled to overtime pay at the rate of one and one-half (1 '/2) times the normal hourly pay rate for such employee for time actually worked after reporting to the place of duty, or three (3) hours pay at the normal rate of pay, whichever is greater. 7.9 Declaration of State of Emergency. Upon the occurrence of fire, flood, earthquake, strike, riot, or other catastrophe or emergency which directly affects city operations or the welfare of the City's citizens, the City Manager may declare a state of emergency to exist. Upon the declaration of a state of emergency, the City Manager may require any or all regular full-time employees of the City to work overtime or off-shift as he or she shall determine, to protect life and property within the City. 7.10 Applicability of Fair Labor Standards Act. The parties agree that if the applicability of the Fair Labor Standards Act to local governmental entities is eliminated by either legislative orjudicial action, they shall meet and confer regarding any proposed changes to this Agreement; however, no such changes shall be made except on mutual agreement. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 26 25E-28 7.11 Reopener. If, during the term of this Agreement, the City modifies the manner in which it pays overtime (pursuant to the Fair Labor Standards Act), the City and CASA agree to reopen this provision of the Agreement and commence discussions regarding the City's modifications to overtime payments. 7.12 Court Appearance. Compensation for court appearance by employees covered by this Agreement shall be as follows: A. For each required court appearance made by an employee during his or her off-duty time in regard to City business, said employee shall be paid overtime for the period of time from their arrival at court until they are released from court or the court session closes for that day. However, in no case shall an employee receive less than two (2) hours overtime for a court appearance during his/her off-duty hours. If separate court appearances are made both in the morning and afternoon of a particular day, a minimum of two (2) hours overtime shall be allowed for each session attended. If the employee is not released from a morning session and must remain available for afternoon court, the employee shall be paid overtime for all hours the court is in session that day. The employee must provide a copy of the subpoena requiring his or her attendance to initiate payroll procedures. B. A subpoenaed employee scheduled to appear in court on City business during off-duty time may be placed on standby status by the Department Head or his or her authorized representative if the employee can respond to the court, if called, within 60 minutes of the employee's notification. In the event such off-duty employee is on standby status during any court session and is not required to appear in court, such employee shall be compensated two (2) hours on a straight time basis, for each said court session. Such employee may elect, in lieu of paid time, two (2) hours of compensatory time off for standby time and not appearing in court, with the approval of the Department Head. If such off-duty employee on standby actually appears in court, he or she shall be compensated as provided in Subsection A, supra. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 27 25E-29 ARTICLE VIII 8.0 TRAINING & EDUCATIONAL ASSISTANCE PROGRAM 8.1 Purpose. A. To encourage the employees of the City of Santa Ana to take college courses and special training courses which will better enable them to perform their present duties and prepare them for increased responsibilities. B. To provide financial assistance to eligible employees for education and training. C. To establish eligibility requirements, conditions and procedures whereby such assistance may be provided. 8.2 Eligibility. A. Applications for tuition reimbursement shall be considered only from full-time, permanent City employees who have completed the probationary work test period. B. Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, etc. C. Applications shall be approved only for courses directly related to the employee's job or directly related to a promotional position in the employee's occupational specialty. D. Courses not ostensibly related to the employee's job, but which are required to qualify for a degree that is directly related to his or herjob, may be reimbursable only after all required occupationally related courses have been completed. E. Prior to receiving tuition reimbursement, employees must submit documentary proof of having received a grade of not less than "C" for the course. If objective ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. F. Approval shall be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of a Board of Education. Workshops, seminars, conferences and similar activities not identifiable as a formal course of CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 28 25E-30 instruction within the curriculum of a recognized educational institution, do not fall within the purview of this program but may be authorized and funded by the interested department without coordination with the Personnel Services Department. G. When an employee is required by his or her Department Head to attend a particular course or seminar, the expense shall be borne entirely by the department. 8.3 Reimbursement. A. Reimbursement shall be based on the cost of tuition or registration fees and all required texts and related material for each course. Additional expenses such as meals and parking fees are not reimbursable. B. Costs for required texts are eligible for one hundred percent (100%) reimbursement subject to the following conditions: 1. That a duplicate of the required text(s) was unavailable for loan from the departmental libraries prior to the commencement of course work; 2. That any textbook(s) purchased by the City shall be submitted to the employee's respective departmental library in order that such text(s) may be made available to all employees. C. Maximum tuition reimbursement is two thousand ($2,000) per fiscal year, which the employee may claim either as costs are incurred during the year or as one lump sum. D. Employees shall be limited, for purposes of tuition reimbursement, to a maximum of two (2) collegiate level courses of not more than a total number of units which is equivalent to six (6) "semester" units per semester. One (1) "quarter" unit shall equal two-thirds (2/3) of one (1) "semester" unit. 8.4 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete, in duplicate, an Application for Training and Educational Assistance form and submit it to his or her Department Head prior to the commencement of class(es) or the payment of fees for registration/tuition. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 29 25E-31 B. The Department Head shall recommend approval or disapproval based on established criteria and budgetary constraints, and then shall forward the application to the Executive Director of Personnel Services. C. The Executive Director of Personnel Services or his or her designee shall approve or disapprove the application for the City Manager. One copy shall be returned to the employee and the duplicate shall be retained by the Personnel Services Department. It is advisable that the applicant accomplish the procedure so far described in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy prior to the inception of the course or disbursement of personal funds. D. The employee shall submit his or her copy of the approved application to the Personnel Services Department within three (3) months after he or she has completed the course and received his or her final grade. Such employee must include official verification of his or her final grade with appropriate receipts for tuition and textbook costs. These shall be returned to the employee upon request. Applications not submitted to the Personnel Services Department within three (3) months following completion of the course become void. E. Upon receipt of the application and required documentation, the Personnel Services Department shall determine whether the completed course of instruction is compatible with the provisions of this Article and shall compute the amount of reimbursement, authenticate the application and forward it to the employee's Department Head. F. The Department Head shall then authorize the Finance & Management Services Department to reimburse the employee the approved amount out of the budget of the department concerned. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 30 25E-32 ARTICLE IX 9.0 HOLIDAYS 9.1 Legal holidays observed by full-time permanent and probationary employees of the City of Santa Ana are as follows: o January 1 - New Year's Day. o Third (3rd) Monday in January - In observance of Martin Luther King, Jr.'s Birthday. o Third (3rd) Monday in February - In commemoration of President's Day. o Last Monday in May - In commemoration of Memorial Day. o July 4th - In observance of Independence Day. o First (1 St) Monday in September - In observance of Labor Day. o November 1 1 th - In observance of Veterans' Day. o Fourth (4th) Thursday in November - In observance of Thanksgiving Day. o The Friday immediately following Thanksgiving Day. o Last working day before Christmas Day, unless Christmas Day falls on Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof. o December 25th - In observance of Christmas Day. o One (1) Floating Holiday - Any workday selected by the employee with prior permission of the employee's supervisor. o Every day proclaimed by the Mayor of the City as a holiday for City employees. o Any holiday which falls on a Sunday shall be observed on the following Monday. o Any holiday which falls on a Saturday shall be observed on the Friday preceding the holiday. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 31 25E-33 9.2 Holidays - Shift Personnel and Employees on Alternate Work Schedules. A. Full-time employees whose regularly scheduled days off are other than Saturday and Sunday shall be entitled to receive twelve (12) eight- hour working days off during the year in lieu of the holiday benefits specified in Section 9.1 above. However, employees on a 9/80 work schedule shall be credited with 96 hours of Holiday Time at the beginning of every calendar year in lieu of twelve (12) holidays in the year. Holiday time for employees on a 9/80 work schedule shall be posted as follows: ¦ If a holiday falls on a regularly-scheduled nine (9) hour workday (Monday, Tuesday, Wednesday or Thursday), nine (9) hours of holiday time shall be posted. ¦ If a holiday falls on a regularly-scheduled eight (8) hour workday (Friday), eight (8) hours of holiday time shall be posted. ¦ If a holiday falls on an employee's regularly-scheduled day off work, the employee shall receive credit for eight (8) hours of holiday time. If any employee on a 9/80 or 4/10 work schedule separates from employment prior to December 31 of any year and has already exhausted 96 hours of holiday time, the value of hours not yet accrued but used shall be deducted from the final paycheck. B. Said substitute holidays may be scheduled by the Department Head or his or her designee, normally during the same month that the holiday is observed by other City employees. An employee entitled to time off in lieu of holidays shall receive that time off in proportion to his or her service at full pay in such capacity during the year. 9.3 Modified Holiday Schedule - Employees Assigned to the Library. Employees assigned to the Library shall, during the term of this Agreement, observe holidays on the dates specified in Section 9.1 above. 9.4 A newly appointed employee must actually work at least one (1) day preceding the day a holiday listed in Section 9.1, supra, actually occurs in order to receive credit for such holiday during the month in which it occurs. An employee separating from the service of the City must actually work at least one (1) day following the day a holiday listed in Section 9.1, supra, actually occurs in order to receive compensation for the holiday. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) Alf-OU 12 Page 32 A newly appointed employee must complete six (6) months of continuous full-time service in order to receive credit for the Floating Holiday listed in Section 1 above. 9.5 Holiday time off may only be taken in increments of eight (8) hours, unless the employee is assigned to a 4/10 or 9/80 work schedule. Employees assigned to the 4/10 work schedule must use their holidays in ten (10) hour increments. Employees assigned to a 9/80 work schedule must use their holidays in nine (9) hour increments as described in Article IV, Section 4.5.D, supra. 9.6 Holiday benefits may not be carried over from one (1) calendar year to the next. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 33 25E-35 ARTICLE X 10.0 VACATION 10.1 Purpose. It is the policy of the City to grant employees vacation leave in order to provide them with a break in their regular work schedule and this purpose shall be used as a guide in the administration of the provisions of this Article. 10.2 Regular Vacation Period. A. Full-time permanent and probationary employees covered by this Agreement shall be granted regular vacation at the rate of ten (10) working days for each of his or her first and second completed year of service, accrued at the rate of six and two-thirds (6 2/3) hours for each completed month of service. Thereafter, all such employees shall be granted regular vacation at the rate of fifteen (15) working days for each completed year of service, accrued at the rate of ten (10) working hours for each completed month of service. B. An employee who has completed less than one year's service during the calendar year shall receive a proportionate fraction in accordance with the amount of service to his or her credit during the year; provided, however, no employee shall be entitled to, or receive payment for, any vacation until he or she has completed six (6) months of continuous service. C. On or after the first (1 St) day of the month following completion of six (6) months of continuous full-time service, an employee may be allowed to take all or a proportionate fraction of his or her earned vacation, subject to scheduling approval of the employee's supervisor. D. Vacation time off may be taken in increments as small as one-half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2). E. Upon completion of two (2) years of continuous service, each employee must take at least five (5) consecutive working days of vacation each year thereafter. F. Computation of Regular Vacation. 1. In computing regular vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010- 2012 Page 34 25E-36 employee would have worked had he or she not been on vacation, shall be deducted from the computation so that one (1) additional day of regular vacation shall be allowed to the employee unless departmental practice provides some other manner of compensating for municipal holidays. Should an employee be confined to a hospital for sickness or injury while on authorized vacation, each full day of such confinement, when confirmed by a physician's statement and approval of the Department Head, may be deducted from the computation of vacation expended and charged against the employee's accumulated sick leave. 2. No employee may carry over from one (1) calendar year to the next, more than the equivalent of two (2) regular vacation periods from the previous two (2) years. A regular vacation period is defined as the maximum amount of vacation earned in a calendar year as provided in Subsection A above. 3. No employee shall have a right to accumulate or split his or her vacations, but the same may be allowed or required by the Department Head. The time at which an employee shall take his or her vacation shall be determined by the Department Head, with due regard for the wishes of the employee and particular regard for the needs of the service. 10.3 Longevity Vacation. A. Each permanent employee is granted additional work days of vacation leave with pay for each completed year of full-time, continuous city service as set forth in the following table. This additional vacation shall be designated longevity vacation. Hourly Equivalent Completed Years Additional Days of Additional Days 6 '/2 4 7 1 8 8 1 '/2 12 9 2 16 10 21/2 20 11 3 24 12 31/2 28 13 4 32 14 4 '/2 36 15 5 40 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010-2012 Page 35 25E-37 Hourly Equivalent Completed Years Additional Days of Additional Days 16 6 48 17 7 56 18 8 64 19 9 72 20 10 80 B. No employee becomes eligible for longevity vacation until completion of the sixth (6th) year of continuous service, and each employee continues to earn the maximum of ten (10) working days (80 hours) of longevity vacation for each completed year of service in excess of twenty (20) years. C. A period of earlier service does not apply toward longevity vacation accumulation when an employee has had a break in continuous service, unless the break in service is concluded by reappointment, as provided in Section 9-114 of the Civil Service Rules and Regulations, or by reemployment from layoff within one (1) year. Leave of absence without pay, as provided in Article XI, Section 11.1 E (Sick Leave - Extended), Article Xl, Section 11.8 (Authorized Absence Without Pay- Long Term) and Article XXI, Section 21.2 (Catastrophic Leave Donation) herein, does not constitute a break in continuous service as used in this section; however, the leave of absence period shall not be applied toward the accumulation of longevity vacation. Absence on military leave followed by reinstatement, as provided in Section 9-143 of the Civil Service Rules and Regulations, does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of longevity vacation. D. Employees covered by this agreement are eligible to cash out up to sixty (60) hours of their current year's allocation of longevity vacation. E. Effective July 1, 2010, all employees covered by this Agreement shall defer for the duration of Fiscal Year 2010-2011 and Fiscal Year 2011- 2012 the ability to cash out longevity vacation time. Such deferral shall not affect an employee's ability to be compensated for all accumulated leave upon termination of employment with the City. F. Effective July 1, 2012 through June 30, 2014, all employees covered by this Agreement shall be permitted to cash out a maximum of one hundred twenty (120) hours of accrued longevity vacation per fiscal year. Such cash-out of longevity vacation shall not be counted or credited as time worked for the purpose of overtime calculation. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 36 25E-38 G. Effective July 1, 2014, the maximum permitted yearly cash-out of longevity vacation shall revert back to sixty (60) hours per fiscal year. 10.4 Limitation on Vacation. A. With the exception of a retiring employee, no employee is granted, and no employee shall be allowed to take any vacation leave with pay in excess of fifty (50) working days (400 hours) in any one year by any combination of the vacations granted in these rules and regulations. Further, no employee may carry over from one (1) calendar year to the next more than the equivalent of two (2) longevity vacation periods and the equivalent of one (1) regular vacation period from the previous two (2) years. Therefore, the maximum vacation that an employee with less than six (6) years service could accumulate is thirty (30) working days (240 hours) and only an employee with more than twenty (20) years service could carry over and take the authorized maximum of fifty (50) working days (400 hours) in any one year. B. Effective as soon as practicable following approval of the Memorandum of Understanding by the City Council, no employee covered by this Agreement may carry over from one (1) calendar year to the next more than the equivalent of three (3) longevity vacation periods and the equivalent of one (1) regular vacation period from the previous three (3) years, and vacation not taken beyond that amount is forfeited. Effective July 1, 2014, limitation on vacation carryover shall revert to that stated above in 10.4.A. 10.5 Excess Usage. If vacation time off is used in excess of that available, such excess vacation time off will, first, be deducted from any available compensatory time off accrual; finally, deducted from the next scheduled salary payment. 10.6 Effect of Extended Sick Leave on Vacation Accrual. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days shall not be considered as service time for regular and longevity vacation accrual purposes. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 37 25E-39 ARTICLE XI 11.0 OTHER LEAVES OF ABSENCE 11.1 Sick Leave. A. Definition. Except as otherwise provided below, sick leave shall be deemed to mean absence from duty of an employee because of illness, injury, medical, or dental appointment that prevents the employee from performing the duties of his or her position, and shall be deemed to include time in quarantine resulting from exposure to a contagious disease. B. Accrual. Each employee shall be entitled to, and shall earn, one (1), eight (8) hour working day of sick leave for each full calendar month of service in which he is employed by the City with full pay; provided, however, any absence on sick leave for a period of time greater than fifteen (15) consecutive calendar days in any one (1) calendar month shall not be considered to be service entitling an employee to earn sick leave as aforesaid. Subject to the other provisions in this Article, sick leave shall accrue to the credit of each employee to the extent that it is not used. C. Authorized Only When Necessary. Use of sick leave by City employees shall be authorized as follows: 1. Sick leave is not a right which an employee may use at his or her discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Subsection J below. 2. When an accepted industrial illness or injury has caused an employee's absence, for which benefits are required under the State Workers' Compensation Insurance and Safety Act, paid sick leave shall be allowed such employee during the first three (3) days of the statutory waiting period. If the workers' compensation related illness or injury continues past the initial three (3) consecutive days, the employee shall have the three (3) used sick days recredited to his or her account if the employee remains off work longer than fourteen (14) days. Paid sick leave shall continue until the fourth (4th) day when the City pays the employee workers' compensation benefits for such illness or injury. If the employee does not have sufficient accumulated sick leave at the commencement of such industrial illness or injury, they shall be advanced sick leave for CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 38 25E-40 this purpose. Subsequently, the City shall deduct an equal amount previously advanced from any sick leave accrued by the employee until the total amount is recovered. If the employee terminates before recovery of all advanced sick leave, the City shall deduct the unrecovered cost of sick leave from such terminated employee's final paycheck, to the extent possible. The City may authorize employees to use sick leave, vacation, or compensatory time for approved workers' compensation medical appointments as specified herein. The City may authorize use of such leave for City approved medical appointments whenever such appointments cannot be secured outside the employee's regular workday, and salary continuation or workers' compensation benefits are not available. D. Limit. The maximum total accumulation of sick leave with pay shall be two hundred (200), eight (8) hour working days. Sick leave usage of less than a full day shall be charged in minimum increments of one- half ('/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2). E. Extended. The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of his or her accrued sick leave if the City physician or a licensed physician designated by the City Manager indicates that the employee shall be sufficiently recovered to return to his or her employment within a six (6) month period. Prior to the expiration of the additional time, the employee may return to his or her position provided that the employee has a certificate from one of the above mentioned physicians stating that the employee is able to perform all the duties of his or her position without qualification. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year without pay. F. Extension by Use of Accrued Compensatory Time Off and/or Vacation. After an employee's sick leave has been exhausted, he or she may be granted permission to use, first, any unused compensatory time off benefits, then, any unused vacation leave benefits he or she may have accrued. G. Notice. The employee taking sick leave shall notify his or her immediate supervisor either prior to or within four (4) hours after the time he or she is scheduled to report for duty, or as otherwise CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 39 25E-41 established by departmental regulations. When the absence is more than three (3) consecutive working days, the employee must present to his or her Department Head a physician's certificate stating that, in the physician's opinion, the employee could not report to work because of such illness or injury and that the employee is sufficiently recovered to safely return to work. A physician's certificate or other satisfactory written evidence of actual illness or injury may be required after an absence of any duration less than three (3) days. H. Denial. No employee shall be entitled to sick leave with pay while absent from duty because of sickness or injury purposely self-inflicted or caused by willful misconduct; or, sickness or disability sustained while engaged in employment other than employment by the City, for monetary gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation. 1. Excess Usaae. If sick leave is used in excess of that due and available an employee, such excess sick leave will, first, be deducted from any available compensatory time off benefit; second, from any available vacation leave benefit; finally, deducted from the next scheduled salary payment. J. Necessity Leave. Each employee shall be afforded the opportunity to use up to 48 hours of sick leave per calendar year, on a non- cumulative basis, as personal necessity leave. All of this personal necessity leave may be used to attend to an illness of a child, parent, or spouse of the employee. As used in this section, "child" means a biological, foster, or adopted child, a stepchild, a legal ward, or a child of a person standing in loco parentis; "parent" means a biological, foster, adoptive parent, a stepparent, or a legal guardian; and "immediate family" means any member of the employee's household related by blood or marriage; a parent, parent-in-law, spouse, child, brother, sister, grandparent, or grandchild of the employee, regardless of residence; any other relative of the employee by blood or marriage, where it can be established by the employee that the employee's presence is required to handle emergency arrangements and/or other matters. Up to three (3) days of this personal necessity leave may be used: a) To attend to a serious accident to members of the employee's immediate family; b) Childbirth; CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 40 25E-42 c) To cope with imminent danger to the employee's family, home, or other valuable property; d) When the existence of external circumstances beyond the employee's control make it impossible for him or her to report for duty; or e) To attend to medical or dental appointments for members of the employee's household. For the purposes of this section only, a "day" shall be defined as the number of hours of work that an employee is required to work according to his or her specific workday schedule. K. Payment for Unused Sick Leave. 1. Except in cases of disability retirement, upon nondisciplinary termination of employment after ten (10) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for one-third (1/3) of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum limit of five hundred and thirty-three (533) hours, at the rate of pay effective on the date of such termination. Maximum sick leave cash-out after ten (10) years of service shall be equal to five hundred and thirty-three (533) hours. Payment of all unused sick leave shall be included in the employee's final paycheck, and is subject to payroll taxes. A lump sum payment shall be made to the beneficiaries of any eligible employee whose death occurs while such employee is an active employee of the City, such payment to be in the amount of one-third (1 /3) of the total sick leave benefit credited to the employee's account at the time of his or her death, and at the rate of pay effective on the date of death. 2. At his or her option, an employee may convert any lump sum payment provided herein into health insurance premiums, to the extent necessary to provide the employee and his or her designated eligible dependents, if any, with benefits under the health insurance program maintained by the City. The City's obligation to pay such premium shall terminate upon the happening of any of the following events: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) _MO : 0143 12 Page 41 a. Premiums have been paid on behalf of the former employee until all monies are exhausted; or b. The sum of premiums paid equals one hundred fifty percent (150%) of the amount of the lump sum payment that the employee would have received for unused sick leave benefits had this option not been elected. C. Except in cases of disability retirement, upon nondisciplinary termination of employment after fifteen (15) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for two-thirds (2/3) of the total sick leave benefit credited to his or her account upon the effective date of such termination to be applied toward health insurance premiums only as specified in Section 11.1.K.2 above, excluding Subsections a and b. 11.2 Bereavement Leave. A. An employee covered under this Agreement shall be granted up to three (3) working days leave without loss of pay in the case of a death of a member of the employee's immediate family. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: 1. Any member of the employee's household related by blood or marriage; 2. A parent, parent-in-law, stepparent, spouse, child, brother, sister, stepbrother, stepsister, grandparent or grandchild of the employee, regardless of residence; 3. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required to handle funeral arrangements and/or matters of estate. B. Whenever an employee is required to travel one way more than 500 miles to attend to the death of a member of the employee's immediate family, an employee may use up to sixteen (16) hours of additional leave charged to their Personal Necessity Leave balance when authorized by the Department Head. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 42 25E-44 1 1.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if he or she furnishes the Executive Director of Personnel Services satisfactory proof of his or her order to report for duty. Upon return and upon showing of proof of actual service pursuant to such orders, he or she shall be reinstated as provided in Section 143 of the Civil Service Rules and Regulations of the City of Santa Ana. B. Temporary. Members of the reserve forces of the United States, or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code, shall be granted leave with pay not to exceed thirty (30) calendar days in each calendar year after one (1) year's service with the City upon presenting satisfactory proof of orders to and from such temporary active duties. 11.4 Jury and Witness Leave. When an on-duty employee is called to serve as a juror or non-party witness in any court action, he or she shall be allowed to leave for the time actually required for such service without loss of pay. Each on-duty employee called for such service shall present to his or her Department Head for examination the subpoena calling him or her to such service and shall pay into the City Treasury the fees collected for such service, with the exception of reimbursement for transportation expenses, if any. 11.5 Examination Leave. Employees participating in examinations conducted during their normal working hours for positions in the competitive service of the City of Santa Ana shall be granted leave with pay for the time actually required without loss of any accrued vacation time off benefits. 11.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. Unauthorized absence from duty for a consecutive number of working hours equal to the number of working hours in the employee's normal workweek (five (5) consecutive working days) may be deemed a resignation from City service; provided, however, if upon return to duty the person so absenting himself or herself makes an explanation satisfactory to the Department Head regarding the cause of his or her absence, the Department Head may restore him or her to his or her position, with the City Manager's approval. 11.7 Authorized Absence Without Pay - Short Term. Absence without pay not to exceed five (5) consecutive working days may be authorized by the employee's Department Head. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the Department Head with the CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 43 25E-45 approval of the City Manager. Such an absence may be authorized only if in the judgment of the Department Head it serves the best interest of the City. 11.8 Authorized Absence Without Pay - Long Term. Upon receipt of a written request from an employee having permanent status, plus action by the Department Head recommending approval of the request, the City Manager may grant a leave of absence without pay for up to six (6) months. An employee returning to duty with the City shall inform the Department Head and the Executive Director of Personnel Services of his or her intention at least thirty (30) calendar days prior to the expiration of the six (6) month period, or shorter period if the full six (6) months is not taken. Upon receipt of such notice, the Department Head shall take steps necessary to restore the employee to his or her former position. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year leave of absence without pay. 11.9 Industrial Leave. Any period of time during which an employee is required to be absent from his or her position by reason of an industrial injury or industrial illness for which he or she is entitled to receive compensation shall not be considered a break in continuous service for the purpose of his or her right to salary adjustments or to the accrual of vacation and seniority. 11.10 Pregnancy Disability Leave. A pregnant employee is entitled to a reasonable leave of absence without pay for any temporary disability resulting from pregnancy, miscarriage, childbirth or recovery therefrom. Such reasonable leave of absence shall not exceed four (4) months. However, an employee may be granted up to an additional two (2) months of leave, at the discretion of the City Manager, for a total of up to six (6) months in which to recover from the disability if substantiated by a physician's certificate. Employees may take an unpaid leave of absence during pregnancy disability consistent with the law. As with all other temporary disabilities, a physician's certificate is required to verify the extent and duration of the temporary disability. An employee who plans to take a pregnancy leave must give a reasonable notice (not less than four (4) weeks) before the date she shall take the leave and the estimated duration of the leave. Health and welfare insurance coverage shall be continued only if the employee pays a cash premium to continue coverage while on a leave of absence without pay or is covered under the Family Medical Leave Act (FMLA) or California Family Rights Act (CFRA) provisions. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 44 25E-46 ARTICLE XII 12.1 EMPLOYEE INSURANCE 12.1 Health Insurance. The City shall contribute the following amounts toward the payment of premiums for affected employees and their dependents under the existing health insurance programs or new program or programs providing substantially similar or improved coverage and benefits selected in accordance with procedures in effect on the effective date of this Agreement: A. For each such employee who is covered under a spouse's non-City sponsored health plan, the City shall pay the employee a cash payment each month in an amount equal to 50% of the monthly premium amount for the City's lowest "employee-only" coverage, if said employee waives, in writing, City-paid coverage. B. The City shall contribute toward medical premiums an amount consistent with the rates then in effect for each tier of the CaIPERS Kaiser Permanente HMO Other Southern California plan. C. Effective as soon as practicable following approval of the Memorandum of Understanding by the City Council, CASA members shall contribute $40.00 per month toward the cost of medical insurance premiums. This contribution is in addition to the amount an employee currently pays toward the cost of his/her medical insurance premiums, if any. D. Effective as soon as practicable following approval of the Memorandum of Understanding by the City Council, the payment to CASA members who currently receive a cash payment each month in accordance with section 12.1(A) above shall be decreased by $40 per month. E. Any contribution necessary to maintain benefits under said medical plans in excess of the amount set forth above shall be borne entirely by the employee. 12.2 Dental Insurance. The City agrees to contribute a maximum of up to ninety ($90) dollars per month per employee toward the payment of premiums for dental insurance plans provided by the City for employees covered by this Agreement and their eligible dependents. A. Effective as soon as practicable following approval of the Memorandum of Understanding by the City Council, CASA members CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 45 25E-47 shall contribute $10.00 per month toward the cost of dental insurance premiums. This contribution is in addition to the amount an employee currently pays toward the cost of his/her dental insurance premiums, if any. B. Any contribution necessary to maintain benefits under said medical plans in excess of the amount set forth above shall be borne entirely by the employee. 12.3 Vision Plan. The City shall maintain in effect its existing vision plan, for employees covered by this agreement. All costs of the premium shall be paid by the employee. 12.4 Long-Term Disability (L.T.D.) Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost for a 60-day elimination period long-term disability insurance plan for employees covered by this Agreement. 12.5 Life Insurance. The City shall maintain in effect its existing life insurance plans covering employees covered by this Agreement, including term life insurance coverage for each affected employee in the amount of twenty thousand dollars ($20,000) plus twenty thousand dollars ($20,000) Accidental Death and Dismemberment (AD&D) coverage at no cost to the employee. 12.6 The City shall retain the right to change health, dental and life insurance carriers, administer the insurance benefits provided thereunder, and select and/or change any excess or supplemental insurance carriers as a part of any self-insurance plan during the term of this Agreement, provided that employees covered by this Agreement continue to receive equivalent benefits and provided that the parties have met and conferred before the benefits changes are made. 12.7 When there is a need to discuss matters relating to employee insurance and the City believes it would be beneficial to involve an Insurance Committee, CASA shall have an equal number of representatives as the City on such a committee, and the Committee shall meet as necessary. 12.8 Medical Retirement Subsidy Plan. A. The City's current annual contribution towards the Medical Retirement Subsidy Plan for employees covered under this Agreement isl.75% of the bargaining unit's base salary, which is based on the first payroll period in October and deposited no later than October 31st of each year. Effective Fiscal Year 2010-2011, the City's annual contribution to the Medical Retirement Subsidy Plan for CASA employees shall be decreased from 1.75% CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 46 25E-48 to 1%. Effective Fiscal Year 2011-2012, the City's annual contribution to the Medical Retirement Subsidy Plan for CASA employees shall revert back to 1.75%. 1. If during the term of this Agreement, the City modifies the contribution amount for any other bargaining unit's medical retirement subsidy plan, the City and CASA agree to reopen this provision of the Agreement and commence discussions regarding the contribution amount. B. The plan shall be administered by the City, at no cost to CASA or its members pursuant to the written directives of CASA. The funds contributed by the City shall be maintained in such a manner as to ensure that the funds are invested in a reasonably secure plan that bears a reasonable rate of interest/growth given current financial markets. For purposes of this Agreement, investments made pursuant to the then current Statement of Investment Policy for the City of Santa Ana, shall be deemed to meet the requirements of this section. This program is for medical insurance premium reduction only. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 47 25E-49 ARTICLE XIII 13.0 RETIREMENT 13.1 General. The terms of the existing contract between the City and the California Public Employees' Retirement System (CaIPERS) governing the City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to make contributions to CaIPERS in accordance with its contract with CaIPERS for affected employees covered by said contract as amended. 13.2 Deferred Retirement. The City shall continue to make payment to CaIPERS on behalf of each affected employee, in an amount necessary to pay one hundred percent (100%) of his or her individual retirement contribution which is equal to eight percent (8%) of base salary. Such payments shall be credited to the individual employee's CaIPERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this Agreement shall be changed or deemed to have been changed by reason thereof. As a result, the City shall not treat these payments as ordinary income and, thus shall not withhold Federal or State income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by sixteen (16) salary rate ranges (8%). For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 2.7% at 55 Service Retirement Benefit for Miscellaneous Members. The City agrees to continue to provide Miscellaneous employees covered by this Agreement with the 2.7% at 55 Service Retirement benefit. Pursuant to CaIPERS regulations, this formula shall apply to employees that are in an active status. This formula shall apply to each year of eligible service credited with the City of Santa Ana. Payment toward the 2.7% at 55 Service Retirement Benefit. Employees covered by this Agreement began paying a total of 6.3% on July 1, 2009 toward the cost of the 2.7% at 55 enhanced retirement formula. Effective as CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010- 2012 Page 48 25E-50 soon as practicable following approval of the Memorandum of Understanding by the City Council, miscellaneous employees covered by this Agreement agree to contribute an additional 11% toward the employer cost of the 2.7% at 55 retirement benefit, for a new total contribution of 7.3%. Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 13.4 Credit for Unused Sick Leave. An employee covered by this Agreement shall be permitted to have unused accumulated sick leave at the time of retirement converted to additional service credit at the rate of 0.004 years of service credit for each eight-hour day of unused sick leave (i.e., 200 days of sick leave equals.80 additional year's of service credit). The City must report only those days of unused sick leave that were accrued by the employee during the normal course of employment. This section applies to members whose effective date of retirement is within four (4) months of separation from employment. 13.5 Military Service Credit as Public Service. An employee covered by this Agreement shall be permitted to purchase up to four (4) years of service credit for any continuous active military or merchant marine service prior to employment. The employee must contribute an amount equal to the contribution for current and prior service that the employee and the employer would have made with respect to that period of service. 13.6 Deferred Compensation. A. Background. Prior to July 1, 1991, the City authorized an amount equal to one percent (1.0%) of base pay for a deferred compensation benefit for full time "confidential" employees. This benefit was treated separately from salary, and was not included in the City's salary and wage schedule. Effective July 1, 1991, to comply with CalPERS wage reporting requirements, this benefit was added to the pay rate assigned to each "confidential" classification and reported as "salary" to CalPERS. Thereafter, pay levels for "confidential" classifications included this additional one percent (1%) deferred compensation benefit. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 49 25E-51 ARTICLE XIV 14.0 SAFETY 14.1 General. The City and the employees of the City agree to comply with all applicable Federal, State and local laws, and the City of Santa Ana regulations, which relate to health and safety. 14.2 Central Safety Committee. CASA may designate two (2) representatives and two (2) alternates to serve on the City's Central Safety Committee. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 50 25E-52 ARTICLE XV 15.0 GRIEVANCE REVIEW PROCEDURE 15.1 Definition of a Grievance. A grievance shall be defined as a timely complaint by an employee or group of employees or CASA concerning the interpretation or application of specific provisions of this Agreement, or of the rules and regulations governing personnel practices or working conditions of the City, except, however, those matters specifically assigned to the jurisdiction of the City Personnel Board by those provisions of the City Charter and the Civil Service Rules and Regulations. 15.2 Informal Process - First Step A. An employee and/or his or her designated representative must first attempt to resolve the grievance on an informal basis through discussion with his or her immediate supervisor without undue delay, but in no case, beyond a period of fifteen (15) business days after the occurrence of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance. B. Every effort shall be made to find an acceptable solution to the grievance through this informal means at the most immediate level of supervision. C. In order that this informal procedure may be responsive, both parties involved shall expedite this process. If, within fifteen (15) business days, a mutually acceptable solution has not been reached at the informal level, the employee and/or the employee's designated representative shall then set forth the grievance in writing, indicate the nature of the action desired, sign it, and submit it in duplicate to the employee's Department Head. If the Department Head is the immediate supervisor, the employee may proceed directly to the City Manager or his/her designee. At this point, the grievance review process becomes formal. Should the grievant fail to file a written grievance, and in the manner specified above, within fifteen (15) business days after first discussing the grievance with the employee's immediate supervisor, the grievance shall be barred and waived. D. Any resolution of the grievance at the informal stage by any person other than a middle manager or above shall not become precedence or be used to establish past practice regarding implementation, interpretation, or application of this Agreement. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 51 25E-53 15.3 Formal Process. A. Second Step. The Department Head or his or her designated representative shall meet with the employee and/or the employee's designated representative within fifteen (15) business days after the grievance has been submitted to the Department Head. The Department Head, or his or her designated representative, shall review the grievance and may affirm, reverse or modify the disposition made at the First Step and shall deliver his or her answer to the employee and/or the employee's designated representative within ten (10) business days after said meeting. B. Third Step. If the grievance is not satisfactorily resolved at the Second Step, the employee and/or the employee's representative may submit the grievance in writing to the City Manager or his or her designated representative within thirty (30) days of being informed of the disposition made at the Second Step. Failure of the grievant and/or his or her designated representative to take this action shall constitute a waiver and bar to the grievance, and the grievance shall be considered settled on the basis of the disposition made at the Second Step. The City Manager or his or her designated representative shall meet with the employee and/or the employee's designated representative within fifteen (15) business days after submission of the grievance. The City Manager, or his or her designated representative, after careful review, may affirm, reverse, or modify the disposition made at the Second Step and his or her decision, which shall be final and binding, shall be delivered in writing, to the employee and/or the employee's designated representative within fifteen (15) business days after said meeting. A copy of the written grievance to the City Manager, or his or her duly authorized representative, and of the City Manager's or his or her representative's written decision, shall be filed in the personnel records of the department and maintained in the City Personnel Services Department. 15.4 Reservation of Rights. After the procedure set forth in this Article has been exhausted, the grievant, CASA, and the City shall have all rights and remedies to pursue said grievance under the law. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 52 25E-54 ARTICLE XVI 16.0 ASSOCIATION RIGHTS 16.1 Release Time for Association Representatives. CASA shall have the right to appoint/elect a reasonable number of representatives who are recognized by the City as officers or work site leaders/stewards. A. Such reasonable number of work site leaders/stewards recognized by the City shall be limited to six (6). B. The City's Executive Director of Personnel Services shall be provided with a list of names and classification titles of CASA's officers as set forth in Exhibit B of the Confidential Association of Santa Ana City MOU, as well as the names and classification titles of all work site leaders/stewards and other Association representatives. The Association agrees to inform the City in writing of any changes in said list within ten (10) calendar days. C. During the term of this Agreement, the City agrees to allow reasonable time off without loss of compensation to enable the officers and worksite leaders/stewards to assist other CASA unit employees in processing grievances under the Grievance Review Procedure and other CASA business activities; provided, however, that such officers and worksite leaders/stewards shall make advance arrangement with their supervisors prior to absenting themselves for such purpose. The officers and worksite leaders/stewards shall be required by the City to record and report to their supervisors the work time spent in assisting other bargaining unit employees pursuant to this provision of the Agreement. Time spent by the Association President, officers or worksite leaders/stewards on Association Release time, under this MOU, shall not be considered time worked for computation of overtime according to the Fair Labor Standards Act. 16.2 Worksite Access. A. Officers, worksite leaders/stewards and/or Association representatives shall be permitted to visit break and lunch areas designated by the City, before or after work or during designated lunch periods for the purpose of discussing Association business, provided that arrangements are made in advance with the manager responsible for the worksite. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 53 25E-55 B. Such visits shall not disrupt the work of City employees, interfere with the normal operations of the department or with established safety and security requirements. Where any such problems arise, CASA and the City will agree on an alternate meeting/conference facility for the purpose of providing a place for CASA to hold a meeting before or after work or during lunch periods. If the City facility provided CASA as an alternate meeting site during non-working hours is a public meeting room, its scheduling and use shall be governed in accordance with regulations pertaining to the use of public meeting rooms at City facilities. C. Solicitations of membership and all activities concerned with the internal management of CASA, such as collecting dues, holding membership meetings, preparation of petitions, campaigning for office, conducting elections and distributing literature, shall not be conducted during working hours. D. Officers and employees may perform those duties assigned to them by CASA, but in no event shall they have the right to interfere with the performance of work of any other employee or interfere with City operations or to call a strike, slowdown, work stoppage, sympathy strike or take any economic action against the City. 16.3 Release Time for Employee Representatives. A. In the event that CASA is formally meeting and conferring with representatives of the City on matters within the scope of representation during regular City business hours, a reasonable number of officers, employee representatives or other officials of CASA shall be allowed reasonable time off without loss of compensation or other benefits. B. Such officers and employee representatives shall not leave their duty or work station or assignment without the prior knowledge of their supervisor or such supervisor's supervisor. C. Such meetings are subject to scheduling in a manner consistent with City operating needs and work schedules. 16.4 Use of Bulletin Boards. Space shall be made available to CASA on the City's existing employee bulletin boards for the purpose of posting notices pertaining to Association business, subject to the following conditions: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 54 25E-56 A. Material posted by CASA shall not include campaign material on municipal election matters, including elections for City Council, other City positions, or other municipal political matters. B. Material posted is not derogatory to the City, City employees or other employee organizations. C. All materials are dated, identify CASA and bear the signature of the authorized representative (s) of CASA responsible for their issuance. D. The City reserves the right to determine what reasonable portion of employee bulletin boards are to be allocated to Association materials. E. If CASA does not abide by these provisions, it will forfeit its right to have materials posted on the City's employee bulletin boards. F. CASA shall not be permitted to post any material that is prohibited by State law or the City Charter. 16.5 Use of City Facilities. The City shall allow CASA to conduct meetings in the City's public meeting rooms during non-working hours provided such meetings are scheduled in accordance with regulations governing the use of public meeting rooms at City facilities; provided, however, CASA shall not be permitted to use City facilities to discuss or present any matter that is prohibited by State law or the City Charter. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 55 25E-57 ARTICLE XVII 17.0 DUES DEDUCTION & INDEMNIFICATION 17.1 Dues Deduction. Upon ratification and approval of dues collection by Association membership, the City shall deduct dues, on a regular basis, from the pay of all employees recognized to be represented by CASA, who voluntarily authorize such deduction, in writing, on a form to be provided for this purpose by the City. The City shall remit such funds to CASA within thirty (30) calendar days following their deduction. Provisions for such dues deduction shall be included in future Memorandums of Understanding should CASA members elect to authorize said deduction. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 56 25E-58 ARTICLE XVIII 18.0 CITY RIGHTS 18.1 The City reserves, retains, and is vested with, solely and exclusively, all rights of management which have not been expressly abridged by specific provision of this Agreement or by law to manage the City, as such rights existed prior to the execution of this Agreement. The sole and exclusive rights of Management, as they are not abridged by this Agreement or by law, shall include but not be limited to the following rights: A. To manage the City generally and to determine the issues of policy. B. To determine the existence or nonexistence of facts which are the basis of the Management decision. C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services. D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. E. To determine methods of financing. F. To determine types of equipment or technology to be used. G. To determine and/or change the facilities, methods, technology, means, and size of the workforce by which the City operations are to be conducted. H. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions, including but not limited to the right to contract for or subcontract any work or operation of the City. 1. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments. J. To relieve employees from duties for lack of work or similar non- disciplinary reason, subject to the provisions of the City Charter, Municipal Code, Federal and State law and this Agreement. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 57 25E-59 K. To establish and modify productivity and performance programs and standards. L. To discharge, suspend, demote, or otherwise discipline employees for proper cause in accordance with the provisions set forth in the City Charter and Santa Ana Municipal Code. M. To determine job classifications and to reclassify employees. N. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with this Agreement. 0. To determine policies, procedures, and standards for selection, training and promotion of employees. P. To establish employee performance standards including but not limited to quality and quantity standards and to require compliance therewith. Q. To maintain order and efficiency in its facilities and operations. R. To establish and promulgate and/or modify rules and regulations to maintain order and safety in the City which are not in contravention with this Agreement. S. To take any and all necessary action to carry out the mission of the City in emergencies. 18.2 Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact on a significant number of employees of the bargaining unit, the City agrees to meet and confer in good faith with representatives of CASA regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this Agreement. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010- 2012 Page 58 25E-60 ARTICLE XIX 19.0 STRIKES & WORK STOPPAGES 19.1 Prohibited Conduct. A. Any employee of the City who engages in any strike, sickout, or other partial or total stoppage of work shall be subject to suspension, demotion or dismissal by the appointing authority without right of appeal to the Personnel Board in accordance with City Charter Section 1014. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 59 25E-61 ARTICLE XX 20.0 LAYOFFS 20.1 It is the hope of the City not to separate any employee(s) from employment because of a reduction in the work force or workweek during the term of this Agreement. However, circumstances arising during this Agreement may require such separation(s). In that event, the City shall provide reasonable notice to CASA of the details of the separation(s) in order to meet and exchange information, opinions and proposals regarding the consequence(s) of the separation(s) on the employee(s). This provision in not intended to be a waiver of any other rights the parties may have under this Agreement. 20.2 If it is decided to contract out work currently being performed by employees of this bargaining unit and it is projected that no employee covered by this Agreement is to be laid off, receive a reduction in hours worked, or receive a loss in pay due to said contracting out, the City shall provide CASA reasonable notice of the decision to contract out, shall meet with CASA upon CASA's request over the impact of the decision to contract out and shall consider reasonable alternatives provided by CASA. 20.3 If the City determines to contemporaneously replace employees covered by this Agreement with contract workers to perform the same work under similar circumstances, it shall expeditiously notify CASA of its intentions. Upon request by CASA the City shall schedule meetings with CASA leadership to discuss this objective and give CASA the opportunity to present information before any final decision. The City and Association leadership agree to commence meeting when practicable for a period not to exceed forty-five days, unless mutually agreed to meet longer. At the end of the agreed upon time and if the parties have not achieved satisfactory resolution, the issues shall be resolved according to the City's Employer-Employee Relations Resolution (Resolution No. 81-75 - Exhibit C of this MOU). 20.4 Notwithstanding Section 20.2 and/or Section 20.3 hereof, if any bargaining unit member is laid off as a result of a decision by the City to contract out work, the City shall make a reasonable effort to cause the affected employee(s) to become employed by the company or entitywith which the City contracted for the applicable services. 20.5 The principles of seniority (length of service) shall govern layoffs as described herein, except in the event that more than one employee has the same seniority date, in which case performance also shall be considered. The City's determination of performance shall not be arbitrary or capricious in CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010- 2012 Page 60 25E-62 nature. Any dispute over the application of the principles outlined in this Article XX shall be subject to the grievance procedure. A. Classification seniority is defined as length of service in the classification, and shall begin on the first date worked by the employee in that classification. Whenever a position within a classification is to be eliminated, resulting in the layoff of an employee, seniority shall govern the order of layoff. The employee with the lowest seniority in the affected classification shall be laid off first. B. In lieu of layoff, an employee may elect to work in a lower classification, in which he or she has served, providing that a vacancy exists and the classification is within the same job family/career ladder. In that event, the employee's length of service in the next lower classification shall be added to his or her length of service in the affected classification, and said combined seniority shall be used to bump down into the next lower classification. This method of combining seniority shall be applied to subsequent lower classifications. C. The reemployment list shall be valid for one year from the date of its establishment. Reemployment shall be in reverse order of layoffs. The Joint Labor Management Committee as outlined in Article Number XXI shall determine Job Family/Career Ladder for purposes of layoff. See Article XXI, Section 21.3.A, Joint Labor Management Teams - Career Ladder/Job Family. 20.6 A bargaining unit employee who is laid off from full time City employment pursuant to this Article, may be granted a temporary appointment to a vacant position in any classification for which there is no eligible list and for which said employee meets the minimum qualifications established for the classification and possesses the requisite knowledge, skills and abilities to satisfactorily perform the work of the classification. Such temporary appointment shall be terminated upon the establishment of a new eligible list for the classification or on the one hundred eightieth (180th) day following the initial day of such temporary appointment, whichever occurs first. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page bl 25E-63 ARTICLE XXI 21.0 MISCELLANEOUS PROVISIONS 21.1 The City agrees to distribute Association membership pamphlets to bargaining unit employees at the new employee orientation sessions conducted by the City. 21.2 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of a catastrophic, non-industrial medical condition or injury, the City and Association agree to implement a Catastrophic Leave Donation Program. Nothing herein shall be construed to alter City policies and procedures as provided in the Charter or ordinances of the City of Santa Ana or other provisions of this Agreement with regard to granting unpaid leaves of absence. The Catastrophic Leave benefit will be provided for non-industrial injury or sickness only. The leave shall cover the uncompensated time prior to the employee's becoming eligible for the L.T.D. benefits. A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient. 1. Employees may donate vacation or compensatory time or one in lieu holiday to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two-week period to submit donations. Donations received after this two-week period shall not be processed. The two-week period for each case shall be designated by the Department Head or his or her designee as provided herein below. 3. All donations must be made in two (2) hour increments and a maximum of eight (8) hours per donor, except in lieu holidays must be for eight (8) hours. 4. Any authorization of donations not made in accordance with the procedures outlined in Section C, Subparagraph 2 below, will not be processed. 5. All donations shall be irrevocable. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 62 25E-64 6. In the event the recipient returns to work before leave donations have been exhausted, any balance on the books shall be accrued by the recipient and designated as sick leave and may be used pursuant to Article X, Sections 10.1 A through 10.1 K. 7. Donations shall be limited to employees of this bargaining unit or any other unrepresented unit. B. Eligibility. Regular, full-time employees shall be eligible for Catastrophic Leave Donations if the following criteria are met: 1. When it is reasonably foreseeable that all accrued time on the books, such as sick leave, compensatory time and vacation, will be exhausted and the employee's illness will continue past the time when the employee will be on paid status. 2. The employee's Department Head, or his or her designee, has approved a written request for donations accompanied by a medical statement from the employee's attending physician. The attending physician's statement must verify the employee's need for an extended medical leave and an estimate of the time the employee will be unable to work. C. Procedure. 1. Upon receipt of a valid request for donations from an eligible employee, the Department Head or his or her designee shall post a notice of the eligible employee's need for donations on bulletin boards accessible to employees. No confidential medical information shall be included in the posted notice. 2. Employees wishing to donate time to an eligible employee must sign his or her authorization of the transfer of such donated time and provide: a. His or her name, department name, and employee number. b. The number of hours of compensatory or vacation time of the donation within the limitations of Section A, subparagraph 3 above; C. The name, department and employee number of the recipient; CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 63 25E-65 d. A statement indicating that the donor understands such donation of time is irrevocable. 3. At the close of the donation period, the department shall verify that each donating employee has accrued vacation and/or compensatory time balances sufficient to cover the designated donation. 4. The department shall submit all approved donation authorizations for an eligible employee at one time for processing. No donation authorizations for the eligible employee will be processed after this period. However, employees who receive donations under this procedure and who exhaust all donated hours may request an additional donation period subject to the provisions of Section A, herein. 5. The City shall add the donated time to the recipient's sick leave account. 21.3 Joint Labor Management Teams. The City and CASA agree to form Joint Labor Management teams for the purpose of exploring issues of mutual concern. Each team shall be comprised of an equal number of labor and management employees and shall be chaired by the Executive Director of Personnel, or his or her designee. In no case shall the activity of a team create a delay or hindrance to the ongoing operation of the City. The City and CASA shall hold an initial meeting no sooner than one (1) month of ratification of this Agreement and upon CASA's written request to meet to determine team composition, frequency of meetings and meeting schedules. The teams to be formed are: A. Career Ladder/Job Family: for the purpose of developing career ladder/job family series to be used in promotions or in the event of layoffs; and B. Bilingual Pay: for the purpose of discussing primary and secondary bilingual pay provisions. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 64 25E-66 ARTICLE XXII 22.0 SOLE & ENTIRE AGREEMENT 22.1 It is understood and agreed that the parties to this Memorandum of Understanding are subject to all current and future applicable Federal and California laws, the City of Santa Ana Charter and Municipal Code, as well as the City's Employer-Employee Relations Resolution number 81-75 (Exhibit C). It is the intent of the parties hereto that the provisions of this Agreement shall supersede all prior agreements and memoranda of agreement, or memoranda of understanding, or contrary salary and/or personnel rules and regulations or administrative codes, provisions of the City, oral or written, express or implied between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This Agreement is not intended to conflict with Federal or State law or the City Charter. The City shall provide employees covered by this Agreement a copy of this Agreement and its attachments, including a section containing the Employer-Employee Relations Resolution of the City of Santa Ana. 22.2 Notwithstanding the foregoing, there exists within the City personnel rules and regulations and departmental rules and regulations. These rules and regulations shall be continued to the extent they do not contravene specific provisions of this Agreement. Such rules and regulations may, from time to time, be changed by the City. If these changes affect wages, hours, and/or other terms and conditions of employment, the City shall meet and confer with CASA; provided, further, however, no provision of the rules and regulations shall be changed to contravene specific provisions of this Agreement. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 65 25E-67 ARTICLE XXIII 23.0 WAIVER OF BARGAINING DURING THE TERM OF THIS AGREEMENT 23.1 During the term of this Agreement, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours and terms and conditions of employment, whether or not covered by the Agreement or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this Agreement. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this Agreement. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 66 25E-68 ARTICLE XXIV 24.0 EMERGENCY WAIVER PROVISION 24.1 In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this Agreement or the Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is declared over, this Agreement will be reinstated immediately. CASA shall have the right to meet and confer with the City regarding the impact on employees of the suspension of the provisions in the Agreement during the course of the emergency. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MO U: 01 Q- 2012 Page 67 ARTICLE XXV 25.0 SEPARABILITY PROVISION 25.1 Should any provision of this Agreement be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this Agreement shall remain in full force and effect for the duration of this Agreement, provided that if any such affected provisions invalidate or void any benefits of employees covered hereunder, the parties shall forthwith commence negotiations to replace the invalidated benefits with benefits of comparable value. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) At 01~ 2012 Page 68 ARTICLE XXVI 26.0 TERM OF AGREEMENT 26.1 The term of this Agreement shall be from July 1, 2010 to June 30, 2012. 26.2 If this Agreement is not replaced by a new mutually-agreed upon Agreement between the City of Santa Ana and CASA before June 30, 2012, then it is agreed that all provisions of this MOU shall remain in effect until mutual agreement is reached on a new Memorandum of Understanding. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 69 25E-71 ARTICLE XXVII 27.0 RATIFICATION & EXECUTION 27.1 The City and CASA have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and CASA acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of CASA and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Agreement is hereby executed by the authorized representatives of the City and CASA and entered into this 20th day of September, 2010. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: Mayor Dated: By: City Manager Dated: By: Executive Director, Personnel Services ATTEST: Maria D. Huizar, Clerk of the Council APPROVED AS TO FORM: Joseph Straka, Assistant City Attorney CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010- 2012 Page 70 25E-72 This Agreement has been ratified by the membership of the Confidential Association of Santa Ana (CASA). Dated: CASA: By: Anita R. Queen, Kathleen Crook, CASA President CASA Vice President Waldo Barela, Debbie Lampman, CASA Chief Negotiator CASA Negotiations Team Jeannette Palma, William Navaja, CASA Negotiations Team CASA Negotiations Team CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 71 25E-73 CASA BASIC SALARY & WAGE SCHEDULE EXHIBIT A Page 1 of 2 The City's Basic Salary and Wage Schedule provides for a number of ranges of pay rates (salary rate ranges) each comprised of six pay steps or rates for full-time employees in CASA classifications. The salary rate ranges are identified by a three digit number, and salary steps are identified by letters AA, A to E inclusive. For CASA employees covered by this Agreement, the purpose of each step and the length of service required for advancement within the rate range are summarized as follows: Purpose: AA Step - Normal beginning pay rate. A Step - Automatic Increase. Also, optional hiring rate. B Step - Automatic Increase. Also, optional hiring rate. C Step - Automatic Increase. May also be maximum hiring rate for certain classifications. D Step - Automatic Increase, and is maximum hiring rate. E Step - Merit Rate. Required Length of Service: AA to A - After six months' completed service. A to B - After one year's completed service. B to C - After one year's completed service. C to D - After one year's completed service. D to E - After 18 months' completed service. In the following salary schedule matrix, each salary rate range is identified by a three digit number. The first two digits are listed in the first vertical column on the left and the third digit is listed horizontally across the top and identifies the appropriate column. This three digit salary rate range number locates the "AA" step of the range, which is the first of the 6 steps. Steps ' A," "B", "C", "D", and "E" are found in the column directly below the "AA" step. For example, the "AA" step of Salary Rate Range No. 401 is found to be $1476 by moving down the left column to the number 40 (the first two digits of the Salary Rate Range No.), then horizontally to column 1 (the third digit of the Salary Rate Range No.). The "AA" step of $1476 has the remaining steps shown directly beneath it; thus the full, six-step range is 1476-1549-1627-1708-1793-1883. In the same manner, Salary Rate Range No. 455 is found to be 1921-2017-2118-2223-2334-2451. SALARY SCHEDULE MATRIX 0 1 2 3 4 5 6 7 8 9 38 1332 1338 1345 1352 1358 1365 1372 1379 1386 1393 39 1399 1405 1413 1420 1427 1434 1441 1448 1455 1463 40 1469 1476 1483 1491 1498 1506 1513 1521 1528 1536 41 1542 1549 1557 1565 1573 1580 1588 1596 1604 1612 42 1619 1627 1635 1643 1651 1659 1668 1676 1684 1693 43 1700 1708 1717 1725 1734 1742 1751 1760 1769 1778 44 1785 1793 1802 1811 1820 1830 1839 1848 1857 1866 45 1874 1883 1892 1902 1911 1921 1930 1940 1950 1960 46 1968 1977 1987 1997 2007 2017 2027 2037 2048 2058 47 2066 2076 2086 2097 2107 2118 2128 2139 2150 2160 48 2169 2179 2190 2201 2212 2223 2234 2246 2257 2268 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) _M8ifOll - 2012 Page 72 CASA BASIC SALARY & WAGE SCHEDULE EXHIBIT A (Salary Schedule Matrix Continued) Page 2 of 2 49 2277 2288 2299 2311 2322 2334 2346 2357 2369 2381 50 2391 2402 2414 2427 2439 2451 2463 2475 2488 2500 51 2511 2523 2536 2548 2561 2574 2587 2600 2613 2626 52 2637 2650 2663 2676 2690 2703 2717 2730 2744 2758 53 2769 2782 2796 2810 2824 2838 2853 2867 2881 2896 54 2907 2921 2936 2950 2965 2980 2995 3010 3025 3040 55 3052 3067 3082 3098 3113 3129 3144 3160 3176 3192 56 3205 3221 3237 3253 3269 3285 3302 3318 3335 3352 57 3365 3381 3398 3415 3432 3449 3467 3484 3501 3519 58 3533 3550 3568 3586 3604 3622 3640 3658 3676 3695 59 3710 3728 3747 3765 3784 3803 3822 3841 3861 3880 60 3896 3915 3935 3954 3974 3994 4014 4034 4054 4074 61 4091 4111 4132 4152 4173 4194 4215 4236 4257 4278 62 4296 4317 4339 4360 4382 4404 4426 4448 4470 4493 63 4511 4533 4556 4579 4601 4624 4648 4671 4694 4718 64 4741 4764 4787 4810 4834 4858 4882 4906 4930 4954 65 4978 5002 5026 5051 5076 5101 5126 5151 5176 5201 66 5226 5252 5278 5304 5330 5356 5382 5408 5434 5461 67 5488 5515 5542 5569 5596 5623 5650 5678 5706 5734 68 5762 5790 5818 5847 5876 5905 5934 5963 5992 6021 69 6050 6080 6110 6140 6170 6200 6230 6260 6291 6322 70 6353 6384 6416 6446 6478 6510 6542 6574 6606 6638 71 6670 6702 6735 6768 6801 6835 6869 6903 6937 6971 72 7005 7039 7073 7107 7141 7176 7211 7247 7283 7319 73 7355 7391 7427 7463 7499 7535 7571 7609 7647 7685 74 7723 7761 7799 7837 7875 7913 7951 7989 8029 8069 75 8109 8149 8189 8229 8269 8309 8349 8389 8431 8473 76 8515 8557 8599 8641 8683 8725 8767 8809 8853 8897 77 8941 8985 9029 9073 9117 9161 9205 9250 9296 9342 78 9388 9434 9482 9529 9577 9625 9673 9721 9770 9819 79 9857 9906 9955 10005 10055 10105 10156 10207 10258 10309 80 10350 10401 10453 10506 10558 10611 10664 10717 10771 10825 81 10868 10922 10976 11031 11086 11142 11198 11254 11310 11366 82 11411 11468 11525 11583 11640 11699 11757 11816 11875 11934 83 11982 12041 12102 12162 12223 12284 12345 12407 12469 12532 84 12581 12643 12707 12770 12834 12898 12963 13027 13093 13158 85 13210 13275 13342 13409 13476 13543 13611 13678 13748 13816 86 13871 13939 14009 14079 14150 14220 14292 14362 14435 14507 87 14565 14636 14709 14783 14858 14931 15007 15080 15157 15232 88 15293 15368 15444 15522 15601 15678 15757 15834 15915 15994 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 73 25E-75 EXHIBIT B CONFIDENTIAL ASSOCIATION OF SANTA ANA FOR FISCAL YEARS JULY 1, 2010 THROUGH JUNE 30, 2012 ASSIGNMENT OF CLASSIFICATIONS TO SALARY RATE RANGE Assigned 6-Step Salary Rate Range Number as of: 7/1/2010 JOB TITLE RANGE NO. BUDGET ANALYST 655 COUNCIL SERVICES SECRETARY 576 EXECUTIVE ASSISTANT 632 EXECUTIVE SECRETARY TO THE POLICE CHIEF 607 LEGAL OFFICE ASSISTANT 531 LEGAL SECRETARY 575 LIABILITY CLAIMS COORDINATOR 690 LIABILITY CLAIMS PROCESSOR 580 LOSS CONTROL ANALYST 650 LOSS CONTROL OFFICE SPECIALIST 580 LOSS CONTROL TECHNICIAN 629 MANAGEMENT AIDE 629 MANAGEMENT ANALYST 655 MANAGEMENT ASSISTANT (EXEMPT) 655 OUTREACH PROGRAM COORDINATOR 684 PARALEGAL (EXEMPT) 610 PAYROLL SYSTEMS ANALYST 695 PAYROLL TECHNICIAN 609 PERSONNEL ANALYST 650 PERSONNEL EXECUTIVE SECRETARY 597 PERSONNEL SECRETARY 576 PERSONNEL SERVICES RECEPTIONIST 558 PERSONNEL SERVICES SPECIALIST 568 PERSONNEL TECHNICIAN 609 POLICE PERSONNEL SERVICES SPECIALIST 589 SECRETARY TO THE CITY MANAGER 653 SENIOR BUDGET ANALYST 684 SENIOR LEGAL MANAGEMENT ASSISTANT (EXEMPT) 684 SENIOR LEGAL OFFICE ASSISTANT 558 SENIOR LEGAL SECRETARY 597 SENIOR MANAGEMENT ANALYST 684 SENIOR MANAGEMENT ASSISTANT (EXEMPT) 684 SENIOR PARALEGAL (EXEMPT) 650 CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 74 25E-76 EXHIBIT B (CONTINUED) CONFIDENTIAL ASSOCIATION OF SANTA ANA FOR FISCAL YEARS JULY 1, 2010 THROUGH JUNE 30, 2014 ASSIGNMENT OF CLASSIFICATIONS TO SALARY RATE RANGE SENIOR PAYROLL TECHNICIAN 629 SENIOR PERSONNEL ANALYST 694 SENIOR PERSONNEL RECEPTIONIST 576 SENIOR PERSONNEL SERVICES SPECIALIST 589 SENIOR PERSONNEL TECHNICIAN 629 SENIOR WORKERS' COMPENSATION CLAIMS ASSISTANT 604 SENIOR WORKERS' COMPENSATION CLAIMS EXAMINER 669 TRAINING COORDINATOR 694 WORKERS' COMPENSATION CLAIMS ASSISTANT 580 WORKERS' COMPENSATION CLAIMS EXAMINER 639 (T) designates a "terminal" classification. A position classification that has been designated as "terminal" by formal City Council action will be deleted from the City's Basic Classification and Compensation Plan when vacated by its last remaining incumbent. No new appointments may be made to a classification that has been so assigned. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 75 25E-77 Exhibit C RESOLUTION NO. 81-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA RELATING TO EMPLOYER-EMPLOYEE RELATIONS IN THE PUBLIC SERVICE OF THE CITY OF SANTA ANA WHEREAS, the Council of the City of Santa Ana declares that it is the public policy of the City to maintain and enhance its administration of employer-employee relations and to protect the public by assuring at all times the orderly and uninterrupted operations and services of City government; and WHEREAS, the City of Santa Ana desires to establish uniform and orderly methods of communication between the City and its employees, including provisions for (a) recognizing the rights of employees to join organizations of their own choosing for the purpose of representation on matters affecting employee relations or to represent themselves individually in dealing with the City; and (b) establishing equitable and uniform rules and procedures to provide for the orderly and systematic presentation, consideration and resolution of employer-employee relations matters; and WHEREAS, the City of Santa Ana has met and conferred in good faith with representatives of the Santa Ana City Employees' Association; Santa Ana Police Benevolent Association; Santa Ana Firemen's Benevolent Association; and the American Federation of State, County and Municipal Employees, AFL-CIO, which are the only employee organizations known to the City to have among their members employees of the City, concerning the rules and regulations for the administration of employer-employee relations set forth herein; and NOW, THEREFORE, the City Council of the City of Santa Ana does hereby resolve as follows: Section 1: Title of Resolution This Resolution shall be known as the "Employer-Employee Relations Resolution of the City of Santa Ana". Section 2: Definitions As used in this Resolution, the following terms shall have the meanings indicated: APPROPRIATE UNIT - means a unit of employee classifications or positions established pursuant to Section 1 1 of this Resolution. CITY - means the City of Santa Ana, a municipal corporation, and where appropriate herein, "City" refers to the City Council or any duly authorized management employee as herein defined. DAY - means calendar day unless expressly stated otherwise. EMPLOYEE - means any person regularly employed by the City on a full time basis except those persons elected by popular vote. EMPLOYEE, CONFIDENTIAL - means an employee who is assigned to perform work directly involved in the development, preparation or presentation of management positions with respect to employer- employee relations. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOIZ_2010- 2012 Page 76 EXHIBIT C (Continued) EMPLOYEE, MANAGEMENT - means any employee having responsibility for formulating, administering or managing the implementation of City policies or programs, including but not limited to, department and assistant department heads, division heads, and professional administrative staff employees employed to render advice and assistance pertaining to the conduct of legal, fiscal, budgetary, personnel management and employer-employee relations affairs of the City. EMPLOYEE, PROFESSIONAL - means a classification of employees engaged in work (a) predominantly intellectual and varied in character as opposed to routine mental, manual, mechanical or physical work; (b) involving the constant exercise of discretion and judgment in its performance; and (c) requiring knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study in an institution of higher learning, as distinguished from a general academic education, or from an apprenticeship or from training in the performance of routine, mental, manual or physical processes. EMPLOYEE, SUPERVISORY - means any employee, regardless of job description or title, having authority, in the interest of the employer, to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward, or discipline other employees, or the responsibility to assign work to and direct them, or to evaluate or review their grievances, or effectively to recommend such actions, if in connection with any of the foregoing, the exercise of such responsibility is not of merely routine or clerical nature, but requires the use of independent judgment. EMPLOYEE ORGANIZATION - means any lawful organization which includes employees of the City and which has as one of its primary purposes representing such employees in their employment relations with the City; provided, however, that said organization has no restrictions on membership based on race, color, creed, sex or national origin. EMPLOYEE RELATIONS OFFICER - means the City's principal representative in all matters of employer- employee relations designated pursuant to Section 3 hereof, or his duly authorized representative. EMPLOYER-EMPLOYEE RELATIONS - means the relationship between the City and its employees and their employee organization, or when used in a general sense, the relationship between City management and individual employees or employee organizations. GRIEVANCE - means a dispute, claimed by an employee, group of employees or a recognized employee organization concerning the meaning, application, or enforcement of any of the provisions of the City's Employer-Employee Relations Policy or of a memorandum of understanding; and for which specific hearing or appeal procedure is not otherwise provided, or is not specifically withheld, by civil service rule, ordinance, resolution, charter provision, or memorandum of understanding. IMPASSE - means that the representatives of the City and a Recognized Employee Organization have reached a point in their meeting and conferring in good faith where their differences concerning matters on which they are required to meet and confer, remain so substantial that further meeting and conferring would not be likely to result in an agreement. MEDIATION OR CONCILIATION - means the efforts of an impartial third person or persons, functioning as intermediaries, to assist the parties in reaching a voluntary resolution to an impasse, through interpretation, suggestion and advice. Mediation and conciliation are interchangeable terms. MEET AND CONFER IN GOOD FAITH - (sometimes referred to herein as "meet and confer" or "meeting and conferring") - means the performance by duly authorized City representatives and CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 77 25E-79 EXHIBIT C (Continued) duly authorized representatives of a recognized employee organization of their mutual obligation personally to meet and confer in good faith promptly upon the request of either party and continue for a reasonable period of time in order to exchange freely information, opinions and proposals, and to endeavor to reach agreement on matters within the scope of representation prior to the adoption by the City of its final budget for the ensuing year. This does not require either party to agree to a proposal or to make a concession. MEMORANDUM OF UNDERSTANDING - means a written memorandum of the agreement between the City and a recognized employee organization reached through meeting and conferring. PEACE OFFICER - means an employee of the Santa Ana Police Department whose principal duties consist of active law enforcement and who is designated as a "peace officer" as that term is defined in Section 830, California Penal Code, except that, for purposes of this Resolution only, "peace officer" does not mean a park patrolman, security guard or a member of the fire department, whether the latter be serving as a member of an arson investigating unit, as a deputy or assistant state fire marshal, or in any capacity wherein the member would have the status of peace officer for purposes other than that of this Resolution. RECOGNIZED EMPLOYEE ORGANIZATION - means an employee organization which has been granted formal recognition by the Employee Relations Officer as the employee organization which has the right to meet and confer in good faith as the majority representative of all members of an appropriate representation unit pursuant to Section 1 1 hereof, except those employees in such unit who have exercised their right not join an employee organization and who choose to represent themselves individually with the City, or has been designated through a secret ballot election as the exclusive representative of the employees in an appropriate representation unit pursuant to Section 1 1 of this Resolution. SCOPE OF REPRESENTATION - means those matters relating to employment conditions and employer- employee relations including, but not limited 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. Section 3: Designation of the City's Employee Relations Officer The City Council hereby designates the City Manager as the Employee Relations Officer who shall be the City's principal representative on all matters of employer-employee relations, with authority to meet and confer in good faith on matters within the scope of representation, and to administer all provisions of this Resolution and the employee relations rule and procedures adopted pursuant thereto. The Employee Relations Officer is authorized to delegate his duties and responsibilities. Section 4: Meet and Confer in Good Faith - Scope City representatives and representatives of formally recognized employee organizations having exclusive representation rights, have the mutual obligation personally to meet and confer in good faith in order to exchange freely information, opinions and proposals and to endeavor to reach agreement on matters within the scope of representation prior to the adoption by the City of its final budget for the ensuring year. The City shall not be required to meet and confer in good faith on a subject preempted by Federal or State law or by the City Charter. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 78 25E-80 EXHIBIT C (Continued) Section 5: Notice The City will give reasonable written notice to each recognized employee organization affected by any ordinance, rule, resolution, or regulation relating to matters within the scope of representation proposed to be adopted by the City, and each such organization shall be given the opportunity to meet and confer with the Employee Relations Officer prior to such adoption. In cases of emergency when the City determines that an ordinance, rule, resolution, or regulation relating to matters within the scope of representation must be adopted immediately without prior notice or meeting with recognized employee organization, the Employee Relations Officer shall provide such notice and opportunity to meet at the earliest practicable time following the adoption of such ordinance, rule, resolution or regulation. Section 6: Petition for Recognition An employee organization that seeks to be formally acknowledged as the Recognized Employee Organization representing the employees in an appropriate unit shall file a petition with the Employee Relations Officer containing the following information and documentation: Name and address of the employee organization. Names and titles of its officers. Names and titles of employee organization representatives who are authorized to speak on behalf of the organization. A statement that the employee organization has, as one of its primary purposes, representing the employees in their employment relations with the City. A statement whether the employee organization is a chapter or local of, or affiliated directly or indirectly in any manner with, a regional or state, or national or international organization, and, if so, the name and address of each such regional, state or international organization. Certified copies of the employee organization's constitution and bylaws, including all amendments thereof. A designation of those persons, not exceeding three in number, and their addresses, to whom sent by first class or certified United States mail will be deemed sufficient notice on the employee organization. A statement that the employee organization is cognizant of the provisions of Section 3509 of the Meyer-Milias-Brown Act. A statement that the employee organization has no restriction on membership based on race, color, creed, sex, or national origin. A description of the composition of the unit or units claimed to be appropriate, including the job classifications of employees and the number of member employees therein, as well as a statement of reasons why the unit or units is or are considered to be appropriate. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 79 25E-81 EXHIBIT C (Continued) A statement that the employee organization has in its possession written proof, dated by the signer within six (6) months of the date upon which the petition is filed, to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the City. Such written proof shall be made in such language and form as the Employee Relations Officer shall prescribe and shall be submitted for confirmation to the Employee Relations Officer to a mutually agreed upon disinterested third party. Notwithstanding the above, the Employee Relations Officer, in his sole discretion, may accept employee dues deduction authorization, using the payroll register for the period immediately preceding the date of filing of a Petition of Recognition, as proof of employee support for the petitioning organization, except that dues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as proof of employee support for any employee organization, unless it can otherwise be shown that the dues deduction for the petitioning organization is the only one which provides full membership rights and privileges, including the right to vote. A request that the Employee Relations Officer recognize the petitioning employee organization as the Recognized Employee Organization representing the employees in the unit(s) claimed to be appropriate for the purpose of meeting and conferring in good faith on all matters within the scope of representation. The Petition, including all accompanying documents, shall be declared to be true, correct and complete, under penalty of perjury, by the duly authorized officer(s) of the employee organization executing it. The Employee Relations Officer may require additional information as required by this Resolution to be included in the Petition. The Employee Relations Officer shall give prompt written notice of the filing of a Petition to any recognized employee organization affected thereby. Section 7: City Response to Recognition Petition Upon receipt of the Petition, the Employee Relations Officer shall within ten (10) days determine whether: There has been compliance with the requirements of the Recognition Petition; and The proposed representation unit is an appropriate unit in accordance with Section 11 of this Resolution. If an affirmative determination is made by the Employee Relations Officer on the foregoing two matters, he shall within ten (10) days after making said determination, inform the petitioning employee organization, shall give written notice of such request for recognition to the employees in the unit and shall take no action on said request for thirty (30) days thereafter. If either of the foregoing matters are not affirmatively determined, the Employee Relations Officer shall meet and discuss the matter with such petitioning employee organization, and, if such determination thereafter remains unchanged, shall inform that organization of the reasons therefore in writing. The petitioning employee organization may appeal such determination in accordance with Section 13 of this Resolution. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 80 25E-82 EXHIBIT C (Continued) Section 8: Open Period for Filing Challenging Petition(s) Within thirty (30) days of the date written notice was given to affected employees that a valid Recognition Petition(s) for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the recognized employee organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some but not all the classifications or positions set forth in the Recognition Petition being challenged), by filing a petition (s) evidencing proof of employee support in the unit claimed to be appropriate of at least thirty (30) percent and otherwise in the same form and manner as set forth in Section 6 of this Resolution. If such challenging petition(s) seeks establishment of an overlapping unit, the Employee Relations Officer shall call for a hearing on such overlapping petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. Thereafter, the Employee Relations Officer shall determine the appropriate unit or units in accordance with the standards in Section 11 of this Resolution. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination is communicated to them by the Employee Relations Officer to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 13 of this Resolution. Section 9: Election Procedure The Employee Relations Officer shall arrange for a secret ballot election to be conducted by a party agreed to by the Employee Relations Officer and the concerned employee organization(s) in accordance with its rules and procedures subject to the provisions of this Resolution. All employee organizations who have duly submitted petitions which have been determined to be in conformance with this Resolution shall be included on the ballot. The choice of "no organization" shall also be included on the ballot. Employees entitled to vote in such election shall be those persons employed full time in regular, permanent positions within the designated appropriate unit who were employed during the pay period immediately prior to the date which ended at least fifteen (15) days before the date the election commences, including those who did not work during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the City in the same unit on the date of election. An employee organization shall be formally acknowledged as the Recognized Employee Organization for the designated appropriate unit following an election or runoff election if it received a numerical majority of all valid votes cast in the election. If an election involving three or more choices, where none of the choices receives a majority of the valid votes cast, a runoff election shall be conducted between the two choices receiving the largest number of valid votes cast (that is, either between two employee organizations, or one employee organization and no representation); the rules governing an initial election being applicable to a runoff election, except that the runoff election shall be held within fifteen (15) days following the certification of the initial election results. There shall be no more than one valid election under this Resolution pursuant to any petition in a 12 month period affecting the same unit. In the event that the parties are unable to agree on a third party to conduct an election, the election shall be conducted by the California State Conciliation Service. Costs of conducting elections shall be borne in equal shares by the City and by each employee organization appearing on the ballot. In cases where a Memorandum of Understanding between the City and an employee organization is in effect on the effective date of this Resolution, it shall be presumed for the duration of the Memorandum of Understanding that the unit set forth in the Memorandum of Understanding is appropriate and that the employee organization is the majority representative of the employees CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 81 25E-83 EXHIBIT C (Continued) covered therein. Unless a petition is filed pursuant to Section 12 below, it shall be presumed that when said Memorandum of Understanding terminates the employee organization shall continue to be a majority representative of employees covered by said Memorandum of Understanding for the purposes of meeting and conferring regarding matters within the scope of representation; provided, however, the employee organization files with the City the information required by Section 6(a), 1 through 13 of this Resolution. Nothing contained herein shall preclude an employee organization from filing a petition for recognition pursuant to Section 6 or Section 10 of this Resolution at the expiration of Memoranda of Understanding which expire on June 30, 1981. Section 10: Procedure for Decertification of Recognized Employee Organization A Decertification Petition alleging that the incumbent Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit may be filed with the Employee Relations Officer only during the month of January of any year following the first full year of recognition or during the thirty (30) day period commencing one hundred eighty (180) days prior to the termination date of a Memorandum of Understanding then having been in effect less than three (3) years, whichever occurs later. A Decertification Petition may be filed by employees or their representative, or an employee organization, and shall contain the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct and complete: The name, address and telephone number of the petitioner and a designated representative authorized to receive notices of requests for further information. The name of the established appropriate unit and of the incumbent Recognized Employee Organization sought to be decertified as the representative of that unit. An allegation that the incumbent Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto. Proof of employee support that a majority of the employees in the established appropriate unit no longer desires to be represented by the incumbent Recognized Employee Organization. Such proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party. The Employee Relations Officer can only accept those petitions which 1) request decertification of the current formally recognized employee organization and 2) do not request to carve out another unit from the already established appropriate unit. An employee organization may file a Petition under this Section in the form of a Recognition Petition that conforms to the requirements of Section 6 of this Resolution in satisfaction of the Decertification Petition requirements hereunder. The Employee Relations Officer shall initially determine whether the Decertification Petition or Recognition Petition, if any, have been filed in compliance with the applicable provisions of this Resolution. If his determination is in the negative, he shall offer to consult thereof with the representative (s) of such petitioning employees or employee organization, and if such determination thereafter remains unchanged, shall return such Petition(s) to the employees or employee organization with a statement of the reasons therefore in writing. The petitioning CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010-2012 Page 82 25E-84 EXHIBIT C (Continued) employees or employee organization may appeal such determination in accordance with Section 13 of this Resolution. If the determination of the Employee Relations Officer is in the affirmative, or if his negative determination is reversed on appeal, he shall give written notice of such Decertification of Recognition Petition to the incumbent Recognized Employee Organization and to unit employees. The Employee Relations Officer shall thereupon arrange for a secret ballot election to be held on or about fifteen (15) days after such notice to determine the wishes of unit employees as to the question of decertification, and if an accompanying Recognition Petition was duly filed, and, in the event decertification of the incumbent Recognized Employee Organization is voted, the question of representation. Such election shall be conducted in conformance with Section 9 of this Resolution. The cost of any election proceeding under the provisions of this Section shall be borne entirely by the employee organization(s) challenging the incumbent recognized employee organization. An employee organization which displaces another employee organization as a formally recognized employee organization following an election conducted pursuant to this Section shall assume any existing Memorandum of Understanding then in effect as a condition of recognition and said Memorandum of Understanding shall remain in full force and effect for the balance of the term thereof. Section 11: Policv and Standards for Determination of Appropriate Units The basic policy objectives in determining the appropriateness of units shall be the effect of a proposed unit on 1) the efficient operations of the City and its compatibility with the primary responsibility of the City and its employees to effectively and economically serve the public and 2) providing employees with effective representation based on recognized community of interest considerations. These policy objectives require that the appropriate unit shall be the broadest feasible grouping of positions that share an identifiable community of interest. Factors to be considered shall be: Similarity of the general kinds of work performed, types of qualifications required, and the general working conditions. History of representation in the City and similar employment; except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized. The effect of the proposed unit on efficient operations of the City and the compatibility of the unit with the responsibility of the City and its employees to serve the public. The effect on the administration of employer-employee relations created by the fragmentation of classifications and proliferation of units. Effect on the classification structure and impact on the stability of the employee relationship of dividing a single or related classification among two or more units. CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 83 25E-85 EXHIBIT C (Continued) Notwithstanding the foregoing, management employees shall only be included in a unit consisting solely of management employees and confidential employees shall be included in a unit consisting solely of confidential employees. When the City establishes new classifications or positions, or modifies the job content of an existing classification or position, the Employee Relations Officer shall, after notice to and consultation with all affected employee organizations, determine which, if any, representation unit shall include such new or modified classification (s) or position(s). Section 12: Procedure for Modification of Established Appropriate Units Requests by employee organizations for modifications of established appropriate units may be considered by the Employee Relations Officer only during the period specified in Section 10 of this Resolution. Such requests shall be submitted in the form of a Recognition Petition, and, in addition to the requirements set forth in Section 6 of this Resolution, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and standards set forth in Section 1 1 hereof. The Employee Relations Officer shall process such petitions as other Recognition petitions under this Resolution. The Employee Relations Officer may on his motion propose, during the period specified in Section 10 of this Resolution, that an established unit be modified. The Employee Relations Officer shall give written notice of the proposed modification(s) to any affected employee organization and shall hold a meeting concerning the proposed modification (s), at which time all affected employee organizations shall be heard. Thereafter the Employee Relations Officer shall determine the composition of the appropriate unit or units in accordance with Section 11 of this Resolution, and shall give written notice of such determination to the affected employee organizations. The Employee Relations Officer=s determination may be appealed as provided in Section 13 of this Resolution. If a unit is modified pursuant to the motion of the Employee Relations Officer hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Recognized Employee Organization for such new appropriate unit or units pursuant to Section 6 hereof. Section 13. Appeals An employee organization aggrieved by an appropriate unit determination of the Employee Relations Officer under this Resolution may, within ten (10) days of notice thereof, appeal such determination to the City Council for final decision. An employee organization aggrieved by a determination of the Employee Relations Officer that a Recognition Petition (Section 6); Challenging Petition (Section 8) or Decertification Petition (Section 10) or employees aggrieved by a determination of the Employee Relations Officer that a Decertification Petition (Section 10) has not been filed in compliance with the applicable provisions of this Resolution, may, within fifteen (15) days of notice of such determination, appeal the determination to the City Council for final decision. Appeal to the City Council shall be filed in writing with the City Clerk, and a copy thereof served on the Employee Relations Officer. The City Council shall commence to consider the matter within thirty (30) days of the filing of the appeal, and shall render a final and binding decision regarding the resolution of the disputed issue(s) raised by the appeal after each party involved has been given an opportunity, during a public meeting, to present written and oral arguments in support of their CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 84 25E-86 EXHIBIT C (Continued) respective positions and, if the City Council so desires, after any future investigation or review of the matter as it may deem appropriate. The City Council, may, in its discretion, refer the dispute to a third party hearing process for the purpose of seeking an advisory determination prior to making its final decision regarding the resolution of the dispute. Section 14: Submission of Current Information by Recognized Employee Organizations All changes in the information filed with the City by a Recognized Employee Organization under Items 1 through 13 of its Recognition Petition under Section 6 of this Resolution shall be submitted in writing to the Employee Relations Officer within fifteen (15) days of such change. Section 15: Payroll Deductions on Behalf of Employee Organizations Upon formal acknowledgment by the City of a Recognized Employee Organization under this Resolution, only such Recognized Employee Organization may be provided payroll deductions of membership dues and insurance premiums for plans sponsored by such organization upon the written authorization of employees in the unit represented by Recognized Employee Organization on forms provided therefore by the City. The providing of such service to the Recognized Employee Organization by the City shall be contingent upon and in accordance with the provisions of Memorandum of Understanding and/or applicable administrative procedures. Section 16: Employee Organization Activities - Use of City Resources Access to City work locations and the use of City paid time, facilities, equipment and other resources by employee organizations and those representing them shall be authorized only to the extent provided for in Memorandum of Understanding and/or administrative procedures; shall be limited to activities pertaining directly to the employer-employee relationship and not such internal employee organization business as soliciting membership, campaigning for office, and organization meetings and elections; and shall not interfere with the efficiency, safety and security of City operations. Section 17: Administrative Rules and Procedures The Employee Relations Officer is hereby authorized to establish such rules and procedures as appropriate to implement and administer the provisions of this Resolution after consultation with affected employee organizations. Section 18: Initiation of Impasse Procedures If the meet and confer process has reached impasse as defined in this Resolution, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all disputed issues. An impasse meeting shall then be scheduled promptly by the Employee Relations Officer. The purpose of such impasse meeting shall be: To identify and specify in writing the issue or issues that remain in dispute; CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOLI: 2010 - 2012 Page 85 25E-87 EXHIBIT C (Continued) To review the position of the parties in a final effort to resolve such disputed issue or issues; and If the dispute is not resolved, to discuss arrangement for the utilization of the impasse procedures provided herein. Section 19: Impasse Procedures Impasse procedures are as follows: If the parties so agree, the issue or issues at impasse shall be submitted directly to the City Council for determination. If they do not agree within seven (7) days following the conclusion of the impasse meeting set forth in Section 18 above, either party may submit the impasse to mediation. All mediation proceeding shall be private and the mediator shall make no public recommendation, nor take any public position at any time concerning the issues. If the parties are unable to agree on a mediator after a reasonable period of time, they shall select the mediator from a list of three names to be provided by the State Conciliation Service, or if that agency for any reason shall fail to provide such list, by the American Arbitration Association. Upon receipt of such list, the parties shall alternately strike names from the list until a single name remains who shall become the mediator. The priority of striking names shall alternate from one party to the other each time impasse procedures are invoked by the some parties. The employee organization or the City shall commence this process in an order determined by lot striking the first name from such list of names in any initial mediation. The cost of the mediator, if any, shall be shared equally by both parties. If the parties have failed to resolve all their disputes through mediation within fifteen (15) days after the mediator commenced meetings with the parties, the parties may agree to submit the issues in dispute directly to the City Council. In that event, the City Council shall finally determine the issues after conducting a public hearing thereon and after such further investigation of the relevant facts as it may deem appropriate. If the parties have exhausted the mediation process, the matter shall be submitted to the City Council for resolution. Section 20: Construction This Resolution shall be administered and construed as follows: Nothing in this Resolution shall be construed to deny to any person, employee, organization, the City, or any authorized officer, body or other representative of the City, the rights, powers and authority granted by Federal or State law or City Charter provisions. Nothing in this Resolution shall be construed as making the provisions of California Labor Code Section 923 applicable to City employees or employee organizations, or of giving employees or employee organizations the right to participate in, support, cooperate or encourage, directly or CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 86 25E-88 EXHIBIT C (Continued) indirectly, any strike, sickout, other total or partial stoppage or slowdown of work or any other interference with the conduct of the City's operations. Nothing contained in this Resolution shall abrogate any written Memorandum of Understanding between any employee organization and the City in effect on the effective date of this Resolution. All such agreements shall continue in effect for the duration of the term specified therein unless modified or rescinded by mutual agreement of the parties thereto. Whenever written notice is required by this Resolution, such notice shall deem to have been received on the day immediately following the day on which it was mailed (excluding Saturdays, Sundays, and holidays on which the offices of the City are closed) provided the same was sent by first class or certified mail, postage prepaid to the City at 20 Civic Center Plaza, Santa Ana, California 92701, or to any employee organization at its last address furnished to the City. Section 21: Severability In any section, subsection, sentence, clause or phrase of this Resolution, or the application of such portion to any person or circumstance, shall be held invalid by a decision of any court of competent jurisdiction, the remainder of this Resolution, or the application of such portion to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any or more sections, subsections, sentences, clauses or phrases be declared invalid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana: that this Resolution shall be operative from and after May 18, 1981. ADOPTED this 18th day of May, 1981, by the following vote: AYES: Acosta, Bricken, Griset, Luxembourger, Markel, McGuigan, Serrat CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 87 25E-89 EXHIBIT "D" 9/80 HARDSHIP CLAIM Name: Division/Section: Position: Work Telephone Number: Supervisor Name and Telephone: Work Hours: Proposed Work Hours: Basis for Hardship Claim: Options explored by employee to resolve the hardship: Employee's proposed solution: Supervisor's needs/concerns/comments: Hardship Committee Recommendation to Department Head: CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: 2010 - 2012 Page 88 25E-90 REQUEST FOR - COUNCIL ACTION m. CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED E3 As Recommended AGREEMENT WITH THE SERVICE O As Amended EMPLOYEES INTERNATIONAL UNION E3 Ordinance on 2 Reading E3 Ordinance on 2nd Reading 0 Implementing Resolution 0 Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Service Employees International Union regarding wages and other terms and conditions of employment. DISCUSSION The City and the Service Employees International Union (SEIU) recently completed contract negotiations resulting in a new three-year Memorandum of Understanding (MOU). The MOU covers July 1, 2010 through June 30, 2013. The provisions of this agreement include: 1) Term: A three-year term, from July 1, 2010 through June 30, 2013. 2) Salary Increase: No salary increases throughout the term of this contract. 3) Furlough Days: Employees will furlough 20 days over 17 months for a total 160 hours starting in October 2010 and ending in February 2012. 4) CALPERS Retirement: SEIU employees will contribute an additional 1.7% to CaIPERS for the cost of the 2.7% at 55 service retirement benefit, for a total contribution of 8%. 5) Salary Step Increase: Freeze all step increases through June 30, 2011. 6) Vacation Cash Out: For fiscal years 2011-12 and 2012-2013, employees will defer the cash-out of longevity vacation leave time. Maximum cash out value per fiscal year is 100 hours for 2013-14, 2014-15 and 2015-16. 25F-1 Agreement with the Service Employees International Union September 20, 2010 Page 2 7) Computation of Workweek for Overtime: Amend overtime language to more closely mirror FLSA guidelines. 8) Medical Insurance: Effective January 1, 201 1 , the City will pay 100% of the lowest available CALPERS approved HMO health plan. Employees hired after January 1, 2012 shall reimburse the City in an amount equal to the lesser of 10% of the value of the lowest available CALPERS approved HMO medical plan or $50 per month. 9) Assignment Pay: Current employees already receiving assignment pay, and who continue to meet the qualifications described in the applicable MOU sections, shall continue to receive said pay under the current assignment pay formulas. Future employees shall not receive assignment pay. 10)Medical Retirement Subsidy Plan: The City will reduce the Medical Retirement Subsidy Plan contribution scheduled for October 2010 from 1.75% to 1 The City will also reduce the subsidy contribution from 1.75% to 1% in each subsequent year of this contract. The contribution will revert to 1.75% at the expiration of this contract. 1 1 )Sick Leave Cash Out: Current vested employees retain full rights to existing Sick Leave cash-out program (maximum of 427 hours). The number of maximum Sick Leave cash- out hours for non-vested employees and new hires shall be reduced by 102 hours to 325 hours maximum. 12)Longevity Vacation Cash Out: Current and re-employed vested employees shall retain rights to the existing longevity leave cash-out program. Longevity vacation leave accrual is eliminated for all new hires. 13)Re-opener: If due to budget overruns or revenue shortfalls the City anticipates that it will be operating under a budget deficit in fiscal years 2011 -2012 or 2012 -2013, the union agrees that upon request of the City made after March 1, 2011, the union will reopen this Agreement for negotiation on the subjects of modifying employee furloughs and employee CalPERS contributions. 14)Layoff Protection: There shall be no layoffs of members of this bargaining unit through December 31, 201 1 . FISCAL IMPACT It is anticipated that the new contract will result in savings in the first year of $2,300,000 and $5,440,00`0 during the 3-year term of the agreement. Kathie S. Gonzalez Francisco Gutierrez Executive Director Executive Director Personnel Services Department Finance & Management Services Agency 25F-2 2010 - 2013 MEMORANDUM OF UNDERSTANDING CITY OF SANTA ANA AND SANTA ANA CITY EMPLOYEES, CHAPTER 1939/ SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721 1 25F-3 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND SANTA ANA CITY EMPLOYEES, CHAPTER 1939/ SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721 FOR FISCAL YEARS 2010-11 THROUGH 2012-13 TABLE OF CONTENTS ARTICLE SUBJECT PAGE ARTICLE I RECOGNITION 5 ARTICLE II NON-DISCRIMINATION CLAUSE 6 ARTICLE III ATTENDANCE, WORKDAY & WORKWEEK 7 ARTICLE IV SALARIES 12 ARTICLE V ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 18 ARTICLE VI OVERTIME 30 ARTICLE VII TRAINING & EDUCATIONAL ASSISTANCE PROGRAM 34 ARTICLE VIII HOLIDAYS 37 ARTICLE IX VACATION 39 ARTICLE X OTHER LEAVES OF ABSENCE 43 ARTICLE XI EMPLOYEE INSURANCE 50 ARTICLE XII RETIREMENT 53 ARTICLE XIII TOOL REIMBURSEMENT POLICY 55 ARTICLE XIV UNIFORM MAINTENANCE 56 ARTICLE XV SAFETY 57 ARTICLE XVI RESIDENCY 58 ARTICLE XVII GRIEVANCE REVIEW PROCEDURE 59 ARTICLE XVIII UNION RIGHTS 61 ARTICLE XIX DUES DEDUCTION & INDEMNIFICATION 68 ARTICLE XX CITY RIGHTS 70 ARTICLE XXI STRIKES & WORK STOPPAGES 72 ARTICLE XXII LAYOFFS 73 ARTICLE XXIII MISCELLANEOUS PROVISIONS 75 ARTICLE XXIV SOLE & ENTIRE AGREEMENT 79 ARTICLE XXV WAIVER OF BARGAINING DURING THE TERM OF THIS AGREEMENT 80 ARTICLE XXVI EMERGENCY WAIVER PROVISION 81 ARTICLE XXVII SEPARABILITY PROVISION 82 ARTICLE XXVIII TERM OF AGREEMENT 83 ARTICLE XXIX RATIFICATION & EXECUTION 84 2 25F-4 TABLE OF CONTENTS (Continued) ARTICLE SUBJECT PAGE EXHIBIT A BASIC SALARY & WAGE SCHEDULE 86 EXHIBIT B ASSIGNMENT OF CLASSIFICATIONS TO SALARY RATE RANGES REPRESENTED BY SANTA ANA CITY EMPLOYEES CHAPTER 1939 SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721, 88 EXHIBIT C RESOLUTION NO. 81-75 96 EXHIBIT D 9/80 HARDSHIP CLAIM 106 3 25F-5 TABLE OF CONTENTS (Cross-referenced in Alphabetical Order) SUBJECT ARTICLE PAGE ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES ARTICLE V 18 ATTENDANCE, WORKDAY & WORKWEEK ARTICLE IH 7 CITY RIGHTS ARTICLE XX 70 DUES DEDUCTION & INDEMNIFICATION ARTICLE XIX 68 EMERGENCY WAIVER PROVISION ARTICLE XXVI 81 EMPLOYEE INSURANCE ARTICLE XI 50 GRIEVANCE REVIEW PROCEDURE ARTICLE XVII 59 HOLIDAYS ARTICLE VIII 37 LAYOFFS ARTICLE XXII 73 MISCELLANEOUS PROVISIONS ARTICLE XXIII 75 NON-DISCRIMINATION CLAUSE ARTICLE II 6 OTHER LEAVES OF ABSENCE ARTICLE X 43 OVERTIME ARTICLE VI 30 RATIFICATION & EXECUTION ARTICLE XXIX 84 RECOGNITION ARTICLE I 5 RESIDENCY ARTICLE XVI 58 RETIREMENT ARTICLE XII 53 SAFETY ARTICLE XV 57 SALARIES ARTICLE IV 12 SEPARABILITY PROVISION ARTICLE XXVII 82 SOLE & ENTIRE AGREEMENT ARTICLE XXIV 79 STRIKES & WORK STOPPAGES ARTICLE XXI 72 TERM OF AGREEMENT ARTICLE XXVIII 83 TOOL REIMBURSEMENT POLICY ARTICLE XIII 55 TRAINING & EDUCATIONAL ASSISTANCE ARTICLE VII 34 PROGRAM UNIFORM MAINTENANCE ARTICLE XIV 56 UNION RIGHTS ARTICLE XVIII 61 VACATION ARTICLE IX 39 WAIVER OF BARGAINING DURING THE TERM ARTICLE XXV 80 OF THIS AGREEMENT EXHIBITS: ASSIGNMENT OF CLASSES REPRESENTED BY EXHIBIT B 88 SANTA ANA CITY EMPLOYEES CHAPTER 1939 SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721 BASIC SALARY & WAGE SCHEDULE EXHIBIT A 86 RESOLUTION NO. 81-75 EXHIBIT C 96 9/80 HARDSHIP CLAIM FORM EXHIBIT D 106 4 25F-6 ARTICLE I 1.0 RECOGNITION 1.1 Pursuant to the provisions of the Meyers-Milias-Brown Act, Government Code Section 3500, et seq., the City of Santa Ana (hereinafter called the "City") has recognized the Santa Ana City Employees Association, Chapter 1939/Service Employees International Union Local 721 (hereinafter called the "Union") as the recognized representative of the bargaining unit which includes all full-time personnel employed by the City of Santa Ana in classifications listed in Exhibit B of this Agreement. 1.2 During the term of this Agreement, no substantive issue of representation shall be raised contrary to this Agreement except as provided in Resolution No. 81-75, the Employer- Employee Relations Resolution of the City of Santa Ana. 5 25F-7 ARTICLE II 2.0 NON-DISCRIMINATION CLAUSE 2.1 The City and the Union agree that they shall not discriminate against any employee because of race, color, sex, age, national origin or alienage, sexual orientation, political or religious opinions or affiliations, or union membership, and that all jobs are open to males and females. The City and the Union shall reopen any provision of this Agreement for the purpose of complying with any order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this Agreement in compliance with State or Federal anti-discrimination laws. 2.2 Whenever reference is made to the masculine gender, it shall be understood to include the feminine gender, unless expressly stated otherwise. 6 25F-8 ARTICLE III 3.0 ATTENDANCE, WORKDAY & WORKWEEK 3.1 Attendance. Employees covered by this Agreement shall be in attendance at their work during hours prescribed by the Department Head or his/her designee(s) and shall not absent themselves without approval of the Department Head or his/her designee(s). 3.2 Hours of Work. Eight (8) hours of work shall constitute a normal day and forty (40) hours of work shall constitute a minimum workweek, except for employees for whom special regulations have been approved by the City Manager. A. 4/10 Work Schedule for Community Preservation Inspectors, Police Department Employees, and Selected Fleet Services Employees. The Department Head, with the approval of the City Manager, may assign the above-referenced employees to a workweek consisting of four (4) ten (10) hour days with an additional one-half (1/2) or one (1) hour for unpaid lunch as negotiated with the Union. The assigned employee shall work four (4) ten (10) hour days and shall have three (3) consecutive days off in a workweek. Upon mutual agreement between the supervisor and employee, the employee may waive his or her right to three (3) consecutive days off in a workweek. The regular workweek shall consist of forty (40) hours. A regular day off shall consist of ten (10) hours. B. 3/11.5, 115.5 Work Schedule For Detention Records Employees. The Department Head, with the approval of the City Manager, may assign these employees to a workweek consisting of three (3) eleven and one-half (11.5) hour days and one (1) five and one-half (5.5) hour day, with an additional forty-five (45) minutes for unpaid lunch as negotiated with the Union. The assigned employee shall have three and one-half (3.5) consecutive days off in a workweek. Upon mutual agreement between the supervisor and employee, the employee may waive his or her right to three and one-half (3.5) consecutive days off in a workweek. The regular workweek shall consist of forty (40) hours. A regular day off shall consist of either eleven and one-half (11.5) hours or five and one-half (5.5) hours. C. 9/80 Work Schedule. The work schedule described below is known as the 9/80. The 9/80 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below will govern. Employees shall be permitted to work a 9/80 work schedule when authorized by the Department Head and approved by the City Manager. A departmental work unit will not be permitted to work this schedule if in the discretion of the Department Head and City Manager, the 9/80 work schedule may reduce service to the public. 7 25F-9 1. 9/80 Work Schedule Defined. The 9/80 work schedule shall be defined as working eighty hours over nine days in a two-week period. An employee shall work eight days for nine hours per day and one day for eight hours, excluding a one-hour lunch during each work shift, totaling forty (40) working hours in each FLSA work week. a. The Work Week Period. The forty (40) hour FLSA work week period shall be defined as the work period starting from Friday at mid-shift to Friday at mid-shift. No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will occur in the middle of the day on Fridays. b. The 9/80 Work Period. The 9/80 two-week work period for employees starts Friday mid-shift and continues for fourteen (14) days until Friday mid-shift. During this period, each week is made up of four nine-hour work days (thirty-six hours) and one four- hour Friday and those hours equal forty work hours in each work week (e.g., the Friday is split into four hours for the first shift, which is charged to work week one and four hours for the second shift, which is charged to work week two). C. Employees cannot change schedules without prior approval of their supervisor and Department Head. The purpose of this authorization is to review the impact on staffing and overtime. Employees may change schedules at the beginning of any work period with supervisor and Department Head approval. d. Modifications of the FLSA work week period are not permitted unless authorized by the Executive Director of Personnel Services and the City Manager. e. Emergencies. All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions that, in the opinion of the City Manager, Department Head or designee, may require such service from any of said employees. 2. Overtime Defined. All FLSA nonexempt employees working under the 9/80 work schedule will earn overtime for all hours worked after the first forty (40) hours in an FLSA work week as required under FLSA. Employees are required to obtain supervisor authorization before working any overtime. a. Overtime Compensation: As stated in Section 6.4 of this Memorandum of Understanding. 8 25F-10 b. Compensatory Time: As stated in Section 6.4 of this Memorandum of Understanding. 3. Leave Benefits. When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. a. Vacation Leave: As stated in Article IX of this Memorandum of Understanding. b. Sick Leave: As stated in Article X of this Memorandum of Understanding. C. Bereavement Leave: As stated in Article X of this Memorandum of Understanding. d. Holidays: As stated in Article VIII of this Memorandum of Understanding. i. For a recognized City holiday, eight hours, as stated in Article VIII, are earned for each holiday. For the charging of hours on a scheduled holiday, the employee must use eight (8) hours of holiday time off and one (1) hour from the employee's vacation leave or compensatory time banks for a nine (9) hour workday charge or eight (8) hours holiday time off for a Friday. ii. If a holiday falls on an employee's Friday off, the employee must then take their holiday off before or after the regular holiday as their holiday off with supervisor and Department Head approval. If the employee cannot take their holiday off before or after the regular scheduled holiday off the employee will bank eight hours of holiday leave to be used at a later date with the supervisor's approval. e. Jury Duty Leave. The provisions of the Memorandum of Understanding shall continue to apply; however, if an employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during the employee's day off work; therefore, the employee will receive no added compensation. 9 25F-11 It is the intent of the parties that no additional paid time off shall be gained or lost as a result of the implementation of either the 4/10, the 3/11.5 plus 115.5, or the 9/80 work schedules. The City reserves the right to abandon either the 4/10, the 3/11.5 plus 115.5, or the 9/80 work schedules for these employees if, in the opinion of the concerned Department Head and the City Manager, either the 4/10, the 3/11.5 plus 115.5, or the 9/80 work schedules has not produced the desired results. If this right is exercised, however, the City and SEIU shall meet and confer in good faith prior to abandoning any of these work schedules. D. Any employee having been authorized to work the 9/80 work schedule who subsequently encounters a personal hardship with his/her work hours may request an accommodation from his/her Department Head. A "hardship request" will be limited to an employee's authorized hours of work. An accommodation will be considered only after the employee has exhausted all other personal options to resolve the hardship. If the employee is unable to resolve his/her problem, the employee may request an accommodation from their Department Head by submitting a hardship claim. The Department Head may authorize an accommodation after reviewing said claim or assign a manager to investigate and recommend a resolution of the hardship claim. The recommendation of the manager will be limited to the following: 1. Approve an appropriate flex schedule that does not disrupt the department ability to deliver its services or create disruption in the work unit. 2. Disapprove the employee's proposed solution to resolve the hardship. 3. Reassign the employee to a 5/40 work schedule. The Department Head may accept any one of the manager's recommendations or advance his own to resolve the hardship. E. The Water Production staff will work an eight (8) hour day shift covering Monday through Friday. Employees will be required to take a 30 minute unpaid lunch break during the shift. 3.3 Employee Furloughs. Beginning October 2010 and ending in February 2012, employees covered by this agreement shall take twenty (20) eight-hour unpaid furlough days totaling 160 hours. Employees covered by this agreement shall furlough one day a month except two additional days shall be taken in December of 2010 and one additional day shall be taken in December 2011. Furloughing shall be on a set day agreeable to the City and union. However, for those departments or divisions identified by the City as having a business necessity, the furlough schedule shall be based on those operational needs. Employees in departments or divisions with special needs may bank furlough hours which shall be taken at the discretion of the employees with the approval of their 10 25F-12 supervisor in increments of not less than one-half (1/2) of one hour, beginning October 1, 2010 and ending April 30, 2012. Furlough hour deductions from employee wages (four hours per pay period) shall be taken out equally for the number of furlough months beginning October 2010 through March 2012. An advance of up to 40 hours of furlough time may be authorized by Departments for use by employees. Employees who are unable to use their furlough hours due to military leave shall have the time period in which to use the furlough hours extended in an amount corresponding with the length of their military leave. The City agrees that upon the request of the union made after March 1, 2011, the City and union will meet on the subject of employee furloughs to ensure furloughing continues to be implemented in a manner agreeable to the City and union. 11 25F-13 ARTICLE IV 4.0 SALARIES 4.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all full-time personnel who are now employed or will in the future be employed in any of the designated classifications of employment represented by the Union as listed in this Agreement and its attachments. 4.2 Salary Schedule. The basic salary schedule, attached hereto in a matrix format as Exhibit "A," and made a part hereof as though set forth in full herein, provides numerous salary rate ranges, each comprised of seven (7) steps or rates of pay. The respective rate ranges are identified by a three digit number. The steps within each range are identified by the letters "AAA" through "E" inclusive, with Step "AAA" being the lowest step in the range. The purpose of each step and the length of service required for advancement to the next higher step within a particular salary rate range are set forth in Exhibit "A." The assignment of classifications to salary rate ranges is listed in Exhibit B, which is attached and made a part hereof as though set forth herein. 4.3 Salaries. A. Effective January 1, 2007, Miscellaneous employees covered by this Agreement shall contribute 2% of their salary toward the employer cost of the 2.7% at 55 benefit. To the extent permitted by Ca1PERS and Internal Revenue Service regulations, this 2% contribution shall be implemented through payroll deduction on a pre-tax basis. Effective January 1, 2008, Miscellaneous employees covered by this Agreement shall contribute an additional 2 % of their salary (for a total of 4%) toward the employer cost of the 2.7% at 55 benefit. To the extent permitted by Ca1PERS and Internal Revenue Service regulations, this additional 2% contribution shall be implemented through payroll deduction on a pre-tax basis. Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute an additional 2.3 % of their salary (for a total of 6.3%) toward the employer cost of the 2.7% at 55 benefit. To the extent permitted by Ca1PERS and Internal Revenue Service regulations, this additional 2.3% contribution shall be implemented through payroll deduction on a pre-tax basis. Effective October 1, 2010, Miscellaneous employees covered by this Agreement shall contribute an additional 1.7 % of their salary (for a total of 8.0%) toward the employer cost of the 2.7% at 55 benefit. To the extent permitted by Ca1PERS and 12 25F-14 Internal Revenue Service regulations, this additional 1.7% contribution shall be implemented through payroll deduction on a pre-tax basis. 4.4 Application of Basic Compensation Plan. The salary rate ranges contained in Section 4.2 and Exhibit "B" are monthly salary rate ranges. All employees working in classifications of employment covered by this Agreement shall be compensated at a monthly rate, except that an employee hired for temporary work in a position which has an anticipated duration of less than six (6) months shall be paid at a rate per hour for actual time spent in the performance of the duties of his or her employment. The regular rate of pay shall be computed as provided for by the Fair Labor Standards Act (FLSA). Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by dividing the monthly salary rate by 173.33. In determining the hourly rate as herein provided, computation shall be made to the nearest whole cent and a computation resulting in an even one-half cent shall fix the rate at the next higher whole cent. 4.5 Probation. The probationary period shall be one (1) year from the date of appointment from an open eligible list (new hire) or a reappointment eligible list (rehire) or a promotional eligible list. 4.6 Beginning Rates. A new employee of the City of Santa Ana shall be paid the rate shown as Step "AAA" in the salary rate range allocated to the classification of employment for which he or she has been hired. In special instances where such new employee possesses unique and exceptional educational training and/or experience qualifications, the Department Head, under whom the employee will serve, may submit a written request and justification to the City Manager for authorization to place such new employee on Step "AA," "A," "B," "C," or "D" within the allocated salary rate range, provided that such employee shall be assigned such salary step upon the commencement of his or her service in the classification of employment to which the salary rate range applies and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article. 4.7 Service. The word "service" as used in this Agreement shall be deemed to mean continuous, full-time service in the classification in which the employee is being considered for salary advancement, service in a higher classification or service in a classification allocated to the same salary rate range and having generally similar duties and requirements. Employees hired after the first (1st) working day of the month shall not be credited with "time in service" for that month when determining the length of service required for salary step advancement. A lapse of service by an employee for a period of time longer than thirty (30) calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purposes of this Agreement, and such employee reentering the service of the City shall be considered as a new employee, except when he or she is being or will be reappointed within one (1) year and placed in the same salary step in the appropriate salary rate as he or she was at the time of termination of employment. "Resignation, quit, or discharge" 13 25F-15 for purposes of this section shall mean separating from full-time City employment altogether, not leaving one position to accept appointment to another position in an unrelated classification outside the career ladder. 4.8 Advancement Within Ranges. A. Length of Service Advancements. After the salary of an employee has been first established and fixed under this plan, such employee shall be advanced from Step "AAA" to Step "AA," Step "AA" to Step "A," from Step "A" to Step "B," from Step "B" to Step "C," or from Step "C" to Step "D," whichever is the next higher step to that on which the employee has been previously paid, effective the first day of the month following the date of completion of the length of service required for such advancement as provided in Section 4.2 and Exhibit A hereof. B. Merit Advances. An employee shall be considered for advancement from Step "D" to Step "E" upon the completion of the required length of service as provided in Section 4.2 and Exhibit A hereof, the effective date of such merit increase, if granted, shall be on the first (I") day of the month following the completion of such required length of service. Advancement to Step "E" may be granted only for continued meritorious and efficient service and continued improvement by the employee in the effective performance of the duties of his or her position. Such merit advancement shall require the following: 1. There shall be on file in the office of the Executive Director of Personnel Services a copy of each periodic performance appraisal report required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. 2. The Department Head, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Department Head as to such recommendations and of the reasons therefore. 3. No advancement in salary above Step "D" shall become effective until approved by the City Manager, except when placement on a salary step above Step "D" results from promotion under the provisions of Sectionl0 of this Article. 4. Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step advance shall be retroactive to the first 14 25F-16 (1st) day of the month following the completion of the required length of service. 5. Beginning October 1, 2010 and ending June 30, 2011, all employee salary step advancement shall be frozen for a one-year period for any employee whose employment anniversary falls within that time period. For example, an employee whose anniversary falls on November 1, 2010 and who otherwise would receive a merit increase on that date will not receive the merit increase until November 1, 2011. In addition thereto, the salaries of employees who have advanced to merit step shall be frozen, except that in the event such an employee receives an annual performance appraisal with an overall rating of "Below Acceptable Performance" or "Unacceptable Performance" during the term of this provision, in which case the City shall be free to remove said employee's merit step pay. Beginning July 1, 2011, employee salary step advancement shall recommence for affected employees on the one year anniversary date of the previously scheduled salary step advancement. C. Length of Service Required When Advancement Denied. When an employee has not been approved for advancement to merit Step "E," he or she may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for such advancement after the completion of six (6) months of additional service. This reconsideration shall follow the same steps and shall be subject to the same actions as provided in subparagraph B (2) and (3) of this section. 4.9 Reduction in Salary Steps. Any employee who is being paid at merit Step "E" may be reduced to Step "D" of the appropriate salary range, upon the recommendation of the Department Head, and the approval of the City Manager. Procedure for such reduction shall follow the same procedure as outlined for merit advancements in Section 4.8 above, and such employee may be considered for readvancement under the same provisions as contained in Subsection C of Section 4.8 above. 4.10 Promotional Salary Advancement. When an employee is promoted to a position in a higher classification from a position in a lower classification in the same occupational career ladder, he or she shall be reassigned to Step "AAA" in the appropriate salary rate range for the higher classification; provided, however, that if the base salary step currently being paid such employee is already equal to or higher than said Step "AAA," he or she will be placed in the lowest step in the appropriate salary rate range as will grant that employee a minimum increase of one (1) salary step (approximately 5%) over his or her current base salary step, inclusive of lead pay, and exclusive of any other assignment or special pay additive or additives such as bilingual pay, shift differential, special skill pay or the like, except when placement at "E" step will not be sufficient to provide a one (1) salary step (approximately 5%) increase. 4.11 Demotion. When an employee is demoted to a position in a lower classification, his or 15 25F-17 her salary rate shall be fixed in the appropriate salary rate range for the lower classification in accordance with the following provisions: A. The salary rate shall be reduced by at least one (1) salary step (approximately 5%). B. The new salary rate must be within the appropriate salary rate range. C. The new salary rate shall not be higher than the salary step to which the employee would have been entitled had his or her service time in the higher classification been spent in the lower classification. D. If the salary rate recommended by the Department Head is lower than the maximum step permissible under Subsection C above, such recommendation shall be considered a reduction in pay in addition to the demotion and shall be handled in accordance with the provisions for salary reductions in Section 4.9 above. 4.12 Reallocation of Salary Rate Ranges. Any employee who is employed in a classification which is reallocated to a different salary rate range from that previously assigned shall be retained in the same salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step. 4.13 Request for Classification Review. Any employee who, for a period exceeding one (1) year, believes he or she is regularly and consistently performing duties and/or responsibilities not in conformance with their classification concept or, duties and/or responsibilities of another classification, may request a classification review of their position through their supervisor to the Department Head. The employee must submit their request on a form specified by the Executive Director of Personnel Services, outlining in writing how they believe their current duties and/or responsibilities differ from their classification concept. A. The Department Head will review the employee's submitted request and within sixty (60) days will make one of the following determinations: 1. Will support the employee's request. a. If the Department Head supports the employee's request for a classification review, he or she will forward the request to the Executive Director of Personnel Services along with justification for support of the employee's request. b. The Department Head will notify the employee that his or her request has been submitted to the Executive Director of Personnel Services. 16 25F-18 2. Will not support the employee's request. a. If the Department Head does not support the employee's request for a classification review, he or she will notify the employee of this decision in writing and set forth the basis for the decision. b. If the Department Head does not support the employee's request, but agrees that some of the duties and/or responsibilities being performed by the employee are those of a higher level City classification, he or she can do the following: i. Return the employee to performance of the duties and/or responsibilities of their proper classification. ii. Eliminate the higher duties and/or responsibilities being performed by the employee, for which the City has agreed are those for which it will provide higher compensation. B. Any employee request for classification review approved by the Department Head will be forwarded to the Executive Director of Personnel Services. The Executive Director of Personnel Services will confirm receipt of the request in writing to the employee. Within sixty (60) days of receipt of the request, the Executive Director of Personnel Services will notify the employee and Department Head of the decision as to whether a study will be conducted. If the Executive Director of Personnel Services determines that a study is appropriate, the Executive Director of Personnel Services will so notify the employee and the Department Head in writing and will provide the employee and Department Head with an approximate start date for the study. C. All determinations of the Department Head and the Executive Director of Personnel Services are final. D. All studies and study findings will require City Manager approval before proceeding. E. All recommendations resulting from study findings require the approval of the City Council and will be implemented in accordance to the City's Civil Service rules. 17 25F-19 ARTICLE V 5.0 ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 5.1 Assignment Pay Differential. Effective November 1, 2001, assignment pay differentials, as listed herein and throughout the agreement, will, in each case, be added individually and separately to the employee's base salary. In no event shall one assignment pay differential be added to the employee's base salary as a basis for the calculation of an additional pay differential. A. Incumbents in the classifications of Senior Office Assistant, Secretary, Executive Secretary, or Planning Commission Secretary who are assigned by a Department Head, with the prior approval of the City Manager, to a position requiring the ability to take dictation at a rate of 70 words per minute or better on a regular basis or as an essential or integral element of the work of the position, will be paid a monthly differential of sixty dollars ($60) above his or her base monthly salary step for each full month of such assignment. B. Incumbents in the classifications of Park Maintenance Worker and Park Maintenance Leader who are continuously and regularly assigned to perform, either on a full-time or half-time basis, duties as a Park Maintenance Planner- Scheduler, will be paid an assignment pay differential at a rate set above their then current base monthly salary step in accordance with the following schedule: twenty (20) salary rate ranges (approximately 10%) for full-time assignment; ten (10) rate ranges (approximately 5%) for half-time assignment. C. An incumbent in the classification of Senior Office Assistant who is continuously and regularly assigned to operate and who actually operates, a two-way radio communications base station, will be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. D. Incumbents in the classifications of Fleet Equipment Technician II and III who are assigned to perform repair and maintenance on fire apparatus on a continuous and regular basis, who possess a California State Certification of Fire Mechanic Level I or Level II, will be paid an assignment pay differential at a rate set five (5) salary rate ranges (approximately 2.5%), respectively, for each certification, above their then current base monthly salary step. E. Incumbents in the classifications of Fleet Equipment Technician I, II and III who are assigned to perform repair and maintenance on emergency response vehicles, excluding fire apparatus, on a continuous and regular basis who possess a nationally recognized certification for Emergency Vehicle Technician Level I or Level II, will be paid an assignment pay differential at a rate set five (5) salary rate ranges (approximately 2.5%), respectively, for each certification, above their then current base monthly salary step. 18 25F-20 F. Personnel in the classifications of Fleet Equipment Technician I, II, III, and Fleet Equipment Supervisor, who maintain a valid State of California Commercial Driver's License and are assigned to an area that requires the possession of either a Class "A" or Class "B" license in the course and scope of their work shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above their then current base monthly salary step. G. Personnel in the classification of Park Maintenance Worker who are regularly and continuously assigned to and actually performing park mowing duties using heavy mower equipment, will be paid at a rate set twenty (20) salary rate ranges (approximately 10%) above their then current base monthly salary step. H. Personnel in the classification of Park Maintenance Worker who are regularly and continuously assigned to and actually performing duties as a utilities coordinator will be paid at a rate set twenty (20) salary rate ranges (approximately 10%) above their then current base monthly salary step. L Personnel in the classification of Park Maintenance Worker who are regularly and continuously assigned to and actually performing duties as an irrigation technician will be paid at a rate set twenty (20) salary rate ranges (approximately 10%) above their then current base monthly salary step. J. Personnel in the classification of Park Maintenance Worker who are regularly and continuously assigned to and actually performing duties as a pesticide operator will have the opportunity to earn up to fifteen (15) salary rate ranges (approximately 7.5%) above their then current base monthly salary step for acquisition of the following: Department of Food & Agriculture Qualified Applicator License = approximately 2.5%; Certificate in Ornamental Horticulture = approximately 5%. K. Personnel in the classification of Park Maintenance Worker who maintain a valid Certified Pool Operator license and who are assigned to and actually performing duties as an aquatics technician shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above their then current base monthly salary step. L. Effective as soon as practicable following approval of this Memorandum of Understanding by the City Council, an employee that is required by a Department Head or their designee to perform the duties of a Notary Public for the City, in addition to regular duties, shall be paid a monthly differential of forty dollars ($40) above his or her then current base monthly salary step. 5.2 Lead Pay. An incumbent who is regularly and continuously assigned to lead a functional unit which includes two (2) or more positions in the same or lower classifications as the incumbent may be compensated for said duties upon mutual agreement of the City and SEIU and approval of the Department Head and the Executive Director of Personnel 19 25F-21 Services. This compensation shall be referred to as "lead pay." In addition, incumbents in the following classifications who are regularly and continuously assigned to perform lead supervisory responsibilities will receive lead pay compensation at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step: Buyer, Customer Service Representative, Equipment Operator-Motor Sweeper, Information Services Representative, Librarian, Library Services Assistant, Parking Meter Technician II, Senior Systems Administrator, Graphics Designer II, Senior Accounting Assistant, Housing Specialist II, Senior Librarian, Workforce Specialist II, and Workforce Specialist III. An incumbent in the classification of Custodian who is regularly and continuously assigned to perform lead supervisory responsibilities will receive lead pay compensation at a rate set fifteen (15) salary rate ranges (approximately 7.5%) above his or her then current base monthly salary step. 5.3 Bilingual Pay. An employee who is assigned by a Department Head or their designee to a position requiring bilingual capability in both English and either Spanish, Samoan, Vietnamese or other languages designated by the City Manager, will be paid a monthly assignment pay differential in accordance with the criteria and amounts set forth below: A. Certification by the Executive Director of Personnel Services as having satisfactorily demonstrated conversational fluency in both languages for any position requiring bilingual capacity. B. Positions where it has been determined by the Department Head that bilingual proficiency is essential to carry out duties and responsibilities of a critical and/or emergency nature without ready access to backup assistance, or positions where bilingual public contact is a major, essential or integral element of the work being performed, will be designated as Primary Bilingual Assignments. A qualified incumbent of such position will be paid a monthly differential of one hundred seventy-five dollars ($175) above his or her base monthly salary step for each full month of such assignment. C. Positions where it has been determined by a Department Head that regular and frequent bilingual usage is necessary to the performance of duties, but not a major, essential or integral element of the work, will be designated as Secondary Bilingual Assignments. A qualified incumbent of such position will be paid a monthly differential of forty dollars ($40) above his or her base monthly salary step for each full month of such assignment. D. The number of such Primary and/or Secondary Bilingual Assignments shall be no larger than the requirements of the department as determined by the Department Head and the City Manager. E. There shall be periodic recertification of such bilingual capability. 20 25F-22 5.4 Shift Differential. A. Generally. An employee in a classification represented by the Union who is continuously and regularly assigned to a schedule of work which requires that he or she actually work a minimum of four and one-half (4 1/2) hours between the hours of 5:00 p.m. and 7:00 a.m., will be paid a shift differential for his or her entire work shift at a rate set ten (10) salary rate ranges (approximately 5%) higher than his or her then current base monthly salary step; except, however, such shift pay differential shall not be applicable to employees in the classification of Park Ranger and Supervising Park Ranger. B. Library Employees. Employees hired and assigned to the Library prior to December 1, 1987, who work evening shifts until closing time, but who are not otherwise eligible for shift differential as provided under Subsection A above, shall receive, as special shift pay, an amount equal to one-half (1/2) of one hour's pay for each day they work an evening shift until closing time. Said special shift pay shall be computed on the hourly equivalent of the base monthly salary step. Such half-hour's pay shall not be counted toward the computation of overtime. Such special library shift pay differential shall not be applicable to library employees hired on or after December 1, 1987. C. Early Morning Street Crews. A Street Maintenance employee who is assigned to traffic painting or downtown cleanup crews who is continuously and regularly assigned to a schedule of work which requires that he or she actually work at least fifty percent (50%) of his or her normal daily work shift between the hours of 1:00 a.m. and 7:00 a.m., will be paid a shift differential for his or her entire work shift at a rate set ten (10) salary rate ranges (approximately 5%) higher than his or her then current base monthly salary step. D. Park Maintenance Worker. Employees in the classification of Park Maintenance Worker who are regularly and continuously assigned to a schedule of work which requires that they actually work a minimum of two (2) weekend night shifts (4 1/2 hours) between the hours of 5:00 p.m. and 7:00 a.m.) as part of his or her regular five (5) day work schedule, will be paid a special night shift differential of five (5) salary rate ranges (2.5%) above his or her then current base monthly salary step. E. Standby Pay. Employees who are released from active duty but who are required by their department to leave notice where they can be reached and be available to return to active duty when required by the department at any time other than their regularly scheduled working hours, shall be said to be on standby duty. Effective no later than the first (1st) day of the second (2nd) payroll period following Council approval, such employees shall receive two hundred dollars ($200) per week when assigned to be on standby duty. Water Production, Water Maintenance, Public Works Maintenance, Building Maintenance, and Information Services Division staff shall be required to serve 21 25F-23 on standby duty and receive standby pay as defined above. The City's preference will be to accomplish the above through volunteers; however, qualified employees may be directed to be on standby if the number of volunteers is insufficient. In addition to the $200 per week Standby Pay, if an employee is able to handle the incident by phone or other electronic means without reporting to duty, he shall be entitled to overtime pay at the rate of 15 minutes or actual time spent per incident whichever is greater, paid at time and one-half (T 1/2) per incident. 5.5 Temporary Upgrade Assignment Pay. In order to provide an equitable method of compensating employees who are assigned temporarily to a vacant, full-time, budgeted, higher-level position the following shall apply: A. General Guidelines. 1. Temporary Upgrade Assignments shall be limited to the temporary filling of vacant, full-time, budgeted positions due to the termination, promotion or authorized long-term absence of the incumbent. A temporarily vacant position need not be a position without an incumbent. 2. Each such assignment may be terminated at any time, but in no event shall such assignment continue beyond one hundred eighty (180) days of such assignment. 3. Prior to recommending to the City Manager that a pay differential for a Temporary Upgrade Assignment be granted, the Department Head shall make the following determinations: a. The duties and responsibilities of the position to be filled are of such nature that they cannot remain unassigned pending the return to duty of the absent incumbent or preparation of an eligible list whichever is applicable. b. It is not practical to assign the duties of the vacant position to any other employee or employees in the same or higher classification. 4. The City Manager or his designee must give written approval of all Temporary Upgrade Assignments involving an increase in pay for the appointee. B. Eligibility. 1. With the exception of those described in paragraph 3 below, regular, full- time employees shall receive Temporary Upgrade Assignment Pay if the following criteria are met: 22 25F-24 a. The work assumed encompasses the majority of the typical duties and responsibilities of the vacated position. b. To qualify for temporary upgrade assignment pay, employees must serve in an acting capacity in the higher level classification as follows: • ten (10) consecutive working days of eight (8) hours each; or • eight (8) consecutive working days of ten (10) hours each, for employees working on an alternative work schedule; or • any combination of consecutive working days consisting of nine (9) hours each and one (1) working day consisting of eight (8) hours, for a total of 80 hours of work for employees working the "9/80"work schedule; or • two (2) consecutive work weeks, consisting of three (3) 11.5 hour days and one (1) 5.5 hour day for a total of 80 hours of work for employees working on an alternative work schedule. C. In computing qualifying service rendered, only full days of actual duty shall be included, and partial days shall not be combined to make full days unless they are normally granted holiday hours. Normally granted holidays will be included in computing actual duty days. d. Employees must requalify for an upgrade (Temporary Assignment) if the employee has not worked in this specific upgrade assignment for a period of 18 consecutive months. The employee shall only be considered to work in a higher classification if such work is duly and specifically authorized by the employee's Department Head. 2. Whenever practicable, the appointing authority shall rotate Temporary Upgrade Assignments among all qualified employees. 3. Employees in the following categories shall not be assigned to Temporary Upgrade work unless specifically authorized by the City Manager: a. Non-permanent employees (Probationary, Part-time, Seasonal, etc.). b. Employees performing work above their regular classification in a training capacity. 23 25F-25 C. Payment. 1. On the eleventh (11th) consecutive working day an employee has been serving in a Temporary Upgrade Assignment, and for each additional consecutive working day the employee so serves, he or she shall receive the beginning rate (Step "AAA") assigned to the higher classification or the lowest rate in that range which is at least ten (10) salary rate ranges (approximately 5%) higher than the current base salary rate he or she normally receives, (inclusive of lead pay and exclusive of any other assignment or special pay additive or additives) whichever is greater, except when placement at "E" step will not be sufficient to provide the ten (10) salary rate range increase. If an employee has worked ten (10) consecutive days during the term of this Agreement in a higher classification, the employee shall thereafter receive upgrade pay for each day the employee is assigned to work in the higher classification during the term of this Agreement. 2. Assignment or special pay additives, such as bilingual pay, shift differential, special skill pay, etc., paid to an employee prior to becoming eligible for Temporary Upgrade Assignment Pay, will not be considered in computing the amount of higher pay to which he or she is entitled in Subparagraph 5.5C above. If the special circumstances upon which said additive is based are also applicable to the Temporary Upgrade Assignment and the employee remains eligible for such pay while in the temporary upgrade position, this amount will be added to the new salary rate range. 3. Temporary Upgrade Assignments which entail moving an employee into a classification represented by an employee unit other than that which represents his or her permanent classification shall not include any change in fringe benefits for the affected employee. 4. While working in a Temporary Upgrade Assignment, an employee will continue to accrue, and have recorded, general, special or normal salary step increases in the employee's permanent position; however, such salary increases will be paid only to maintain the minimum five percent (5%) differential above the salary to which an employee is entitled in his or her permanent position. 5.6 All assignments of personnel to positions set forth in Sections 5.1 through 5.4 above shall be made or revoked at the discretion of the Department Head. 5.7 Limitation on Assignment Pay Differentials. Employees covered by this agreement and already receiving assignment pay under section 5.1 of this article and who continue to meet the qualifications described in the applicable assignment pay provisions of section 24 25F-26 5.1 of this article shall continue to receive said pay under the current assignment pay formulas. Current employees who become eligible for, and are assigned, and do in fact begin receiving assignment pay under section 5.1 of this article prior to June 30, 2013, shall continue to receive said pay under the current assignment formulas provided they continue to meet the qualifications described in the applicable assignment pay provisions of section 5.1 this article. Current employees who do not receive assignment pay under section 5.1 of this article prior to the June 30, 2013, will not thereafter, be eligible to receive it. Any employee hired after August 31, 2010 shall not be eligible to receive assignment pay under the assignment pay provisions of section 5.1 of this article. 5.8 Career Development Incentives. Employees hired in a classification which requires an International Conference of Building Officials (ICBO), International Code Council (ICC), or other certificate as a prerequisite to hiring, either upon appointment or by the time of the employee's passage of probation ("regular appointment"), shall not be eligible for career incentive pay for that prerequisite certificate. However, they will be eligible for career incentive pay for any other certificates approved for their classification. In no event shall the application of this Career Development Incentive Program result in an individual being eligible to earn more than twenty-five (25) salary rate ranges (approximately 12.5%) above his or her current monthly base salary step. A. An incumbent in one of the classifications listed below will be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base monthly salary step for each of the following: valid registration as a Registered Engineer by the State of California and valid registration as a Structural Engineer by the State of California (a total of twenty (20) salary rate ranges (approximately 10%) for possession of both). Additionally, said incumbents who possess a valid certificate issued by the ICBO (or similar nationally recognized certificating organization) in the areas of accessibility/usability (one specialty area), residential energy plan check, or non-residential energy plan check, shall be paid an incentive pay differential at a rate set above his or her then current base monthly salary step in accordance with the following schedule: One certificate from one specialty area: five (5) salary rate ranges (approximately 2.5%); an additional certificate from a second specialty area (total of two): ten (10) salary rate ranges (approximately 5%); an additional certificate from a third specialty area (total of three): fifteen (15) salary rate ranges (approximately 7.5%). o Assistant Engineer I o Assistant Engineer II o Assistant Engineer-Transportation (T) o Senior Assistant Engineer o Senior Civil Engineer o Senior Engineer o Senior Traffic Engineer o Assistant Plan Check Engineer I 25 25F-27 o Assistant Plan Check Engineer II o Associate Plan Check Engineer o Senior Plan Check Engineer o Senior Transportation Analyst B. An incumbent who was employed as of August 16, 1991 in the classification of Plan Examiner (T), Assistant Plan Check Engineer I or II, Associate Plan Check Engineer, Senior Plan Check Engineer and who, as of December 31, 1987, had possessed a valid Plan Examiner Certificate issued by the ICBO shall continue to be paid at a rate set ten (10) salary rate ranges (approximately 5%) above his or her then current base salary step. However, effective January 1, 1988, said ten (10) range differential shall be reduced to five (5) salary rate ranges (approximately 2.5%) for any incumbent of said classifications who is issued his or her initial certificate on or after January 1, 1988. C. An incumbent in one of the classifications listed below who possess a valid certificate issued by the ICBO (or similar nationally recognized certificating organization) in the areas of building inspection, combination inspection, electrical inspection, mechanical inspection, plumbing inspection, combination dwelling inspection, plan examining, accessibility/usability (one (1) specialty area), residential energy plan check, or non-residential energy plan check, shall be paid an incentive pay differential at a rate set above his or her then current base monthly salary step in accordance with the schedule listed below. Incumbents who possess a valid certificate issued by the ICBO in combination inspection may substitute this for building inspection or combination dwelling inspection; however, incumbents shall not receive incentive pay for more than two of these three certificates. One certificate from one specialty area: five (5) salary rate ranges (approximately 2.5%); an additional certificate from a second specialty area (total of two): ten (10) salary rate ranges (approximately 5%); an additional certificate from a third specialty area (total of three): fifteen (15 ) salary rate ranges (approximately 7.5%); an additional certificate from a fourth specialty area (total of four): twenty (20) salary rate ranges (approximately 10%); and an additional certificate from the fifth specialty area (total of five): twenty-five (25) salary rate ranges (approximately 12.5%). o Building Inspector o Senior Building Inspector o Electrical Inspector o Senior Electrical Inspector o Plumbing Inspector o Senior Plumbing Inspector o Combination Building Inspector o Senior Combination o Building Technician Building Inspector o Plan Examiner (T) o Plan Examiner (T) Electrical o Senior Plumbing and Mechanical o Senior Electrical Systems Systems Specialist Specialist 26 25F-28 D. Incumbents in the classifications of o Community Preservation Technician o Community Preservation Inspector o Senior Community Preservation Inspector o Community Preservation Inspector II (T) who obtain or possess a valid certificate issued by the ICBO (International Conference of Building Officials), ICC (International Code Council), SCACEO (Southern California/Statewide Association of Code Enforcement Officers), CACEO (California Association of Code Enforcement Officers), or any similar nationally recognized certificating organization in any four (4) of the following Career Development Incentive areas shall receive incentive pay worth five salary rate ranges (approximately 2.5%) for each certificates, not to exceed five (5) certificates or a total of twenty-five salary rate ranges (approximately 12.5%). If an incumbent has obtained four (4) such certificates from the menu below, he or she than shall be eligible to earn an additional five (5) salary rate ranges (approximately 2.5%) pay additive upon completion of both the SCACEO/CACEO Intermediate and SCACEO/CACEO Advanced Certifications: o Building Inspection o Electrical Inspection o Mechanical Inspection o Plumbing Inspection o Combo Dwelling Inspector o Plans Examiner o Zoning Inspection o Property Maintenance and Housing o PC 832 o Basic Module (SCACEO/CACEO) o Accessibility Inspector/Plans Examiner o Permit Technician o Coastal and Floodplain Construction Inspector o Disaster Response Inspector If an incumbent has already completed both the SCACEO/CACEO Intermediate and the SCACEO/CACEO Advanced certifications, upon completion of any other four (4) certificates from the menu above, said employee shall be eligible to receive the additional five salary rate ranges (approximately 2.5% total) pay additive for the Intermediate/Advanced certifications. In no event shall the expansion of current certificate pay opportunities result in an employee being eligible to earn more than twenty-five salary rate ranges (approximately 12.5%) in pay additives for Career Development Incentives above his or her then current base monthly salary step. 27 25F-29 E. An incumbent in one of the classifications listed below who possess a valid certificate issued by the ICBO (or similar nationally recognized certificating organization) in the areas of reinforced concrete, structural masonry, structural steel/welding, electrical inspection, plumbing inspection, plans examiner, or C27 landscape contractors license, shall be paid an incentive pay differential at a rate set above his or her then current base monthly salary step in accordance with the following schedule: One certificate from one specialty area: five (5) salary rate ranges (approximately 2.5%); an additional certificate from a second specialty area (total of two): ten (10) salary rate ranges (approximately 5%); an additional certificate from a third specialty area (total of three): fifteen (15) salary rate ranges (approximately 7.5%); an additional certificate from a fourth specialty area (total of four): twenty (20) salary rate ranges (approximately 10%); and an additional certificate from the fifth specialty area (total of five): twenty-five (25) salary rate ranges (approximately 12.5%). o Construction Inspector I o Construction Inspector II F. An incumbent in the classification listed below who possess a valid certificate issued by the ICBO (or similar nationally recognized certificating organization) in the areas of plumbing inspection, electrical inspection, plans examiner, C27 landscape contractors license, turf grass management, or certified arborist (ISA), shall be paid an incentive pay differential at a rate set above his or her then current base monthly salary step in accordance with the following schedule: One certificate from one specialty area: five (5) salary rate ranges (approximately 2.5%); an additional certificate from a second specialty area (total of two): ten (10) salary rate ranges (approximately 5%); an additional certificate from a third specialty area (total of three): fifteen (15) salary rate ranges (approximately 7.5%); an additional certificate from a fourth specialty area (total of four): twenty (20) salary rate ranges (approximately 10%); and an additional certificate from the fifth specialty area (total of five): twenty-five (25) salary rate ranges (approximately 12.5%). o Contracts Administrator G. An incumbent in one of the classifications listed below who possess a valid certificate issued by the International Society of Arboriculture (ISA) as a certified arborist shall be paid at a rate of set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. o Projects Manager o Tree Maintenance Supervisor o Tree Trimmer o Maintenance Worker II (assigned to the tree crew) o Public Works Projects Specialist o Landscape Development Associate 28 25F-30 H. An incumbent in the classification listed below who possesses a valid certificate issued by the International Society of Arboriculture (ISA) as a certified Tree Worker shall be paid at a rate of set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. o Maintenance Worker II (assigned to the tree crew) 5.9 Limitation on Career Development Incentive Pay. Employees covered by this agreement and already receiving career development incentive pay under section 5.7 of this article and who continue to meet the qualifications described in the applicable career development incentive pay provisions of section 5.7 of this article shall continue to receive said pay under the current career development incentive pay formulas. Current employees who are eligible for, and do in fact begin receiving career development incentive pay prior to June 30, 2012, shall continue to receive said pay under the applicable career development incentive pay provisions of section 5.7 of this article. Current employees who do not receive career development pay prior to the June 30, 2012 will not thereafter be eligible to receive it. Provided, however, that current employees who are eligible to qualify for career development incentive pay under the terms of section 5.7 of this article, and who are awaiting the results of a qualifying examination or other measurement taken prior to June 30, 2012, shall receive career development incentive pay upon confirmation of a passing result. Any employee hired after September 30, 2010 shall not be eligible to receive career development incentive pay under the career development incentive pay provisions of section 5.7 of this article. 29 25F-31 ARTICLE VI 6.0 OVERTIME 6.1 General Policy for Overtime Work. When it shall be determined to be in the public interest for employees to perform overtime work, or in an emergency situation, the City Manager, the Department Head, or a duly authorized representative of the City Manager or the Department Head, may require an employee to perform overtime work. 6.2 Definition. Overtime work is defined as: That authorized or required time worked in excess of 40 hours in the workweek schedule for a particular classification and organizational unit of an employee. A workweek is a fixed and regularly recurring period of 168 consecutive hours - 7 consecutive 24-hour periods - as designated by the appointing authority. An employee's work schedule within the workweek shall not be changed to avoid payment of overtime; provided, however, nothing shall abridge management's right to establish and change work schedules and assignments in accordance with the rights of management contained in Article XX, infra. 6.3 Computation of Forty (40) Hour Workweek. In computing the forty (40) hour workweek, the following type of work hours shall be included in the computation: Actual hours worked, jury/witness leave and bereavement leave. Any combination of these hours in excess of forty (40) hours per work week shall entitle the employee to overtime. Work on an observed Holiday which would otherwise be a scheduled day off for the employee will be paid as overtime. Any paid time off during the workweek such as vacation leave, sick leave, holiday leave, President's Leave and Union Business Leave, as well as all unpaid leave including furlough days shall not be counted towards the hours worked in a workweek for the computation of overtime unless the hours in excess of forty (40) hours in a workweek (including the above listed time) are worked by the employee at the requirement of management. For example, an employee working a Monday through Friday work schedule who takes 9 hours of vacation leave on Monday and works his normal 31 hours Tuesday through Friday, would not earn overtime for 2 hours he volunteered to work extra on Saturday. However, if that same employee had been required by management to work the 2 hours on Saturday as opposed to volunteering, the 2 hours would be compensated as overtime. 6.4 Compensation for Overtime. A. The preferable method by which overtime shall be compensated is by monetary payment, at one and one-half (1 1/2) times the employee's regular rate of pay, subject to the provisions of Subsection "C" below. 30 25F-32 B. Should the Department Head determine that the best interests of the City will be served thereby, he or his designee may permit an employee to be compensated for overtime work by taking paid compensatory time off at the rate of one and one- half (1 1/2) times the employee's regular base rate of pay. C. Employees shall have the option with Department Head approval to convert a maximum of eighty (80) hours of time and one-half (T 1/2) paid overtime (in compensation for 53 1/3 overtime hours worked) to time and one-half (T 1/2) compensatory time off benefits. Such compensatory time off shall be taken at the discretion of the employee when requested at least 72 hours in advance, subject to the operational needs and staffing requirements of the department. If the Department Head or his or her designee subsequently denies the requested compensatory time off the employee and department will mutually agree on a future date within one year when the employee can use the paid compensatory time off If the requested compensatory time off is not used within that one year, such compensatory overtime will be paid off in cash. D. Time off with pay to compensate for overtime worked may be accumulated to a maximum of eighty (80) hours. E. Because each hour of overtime worked is programmatically accrued on a time and one-half (T 1/2) basis, compensatory time off will be taken, and monetary payment will be paid, on a straight-time basis. Also, upon termination, any earned, unused compensatory time off ("time-on-the-books") will be paid on a straight-time basis. F. Time off with pay to compensate for overtime worked may be taken in increments as small as a half (1/2) hour. G. If compensatory time off is used in excess of that available, such excess compensatory time off will, first, be deducted from any available vacation benefits; finally, deducted from the next scheduled wage or salary payment. H. Time off with pay as compensation for overtime may not be granted or taken in advance of the overtime work for which the time off compensates. Before compensatory time off with pay may be taken, as herein provided, the overtime worked must have been recorded on official payroll records at or about the time the overtime work was performed. In the absence of such recording, no compensatory time off with pay will be permitted. L Upon an employee's appointment to a position in which overtime may not be earned or upon an employee's separation from employment with the City by resignation, retirement, layoff or otherwise, he or she shall forthwith be compensated for any overtime accumulated to the time immediately preceding such promotion or separation. 31 25F-33 6.5 No Effect on Other Benefits. Overtime work shall not apply to the earning of employee benefits (retirement, holidays, vacation accrual, sick leave accrual and employee insurance benefits), toward the completion of probationary period, or to progression within salary rate range. 6.6 Overtime Work to be Minimized. To the extent that he or she is reasonably able to do so, the Department Head or his or her designee shall arrange work programs to minimize overtime work. Necessary overtime work shall be apportioned among employees of like classification and assignment. 6.7 Call-Back Duty. Any employee covered by this Agreement who is recalled to active duty from off-duty, shall be entitled to overtime pay at the rate of one and one-half (1 1/2) times the normal hourly pay rate for such employee for time actually worked after reporting to the place of duty, or three (3) hours pay at the normal rate of pay, whichever is greater. 6.8 Declaration of State of Emergency. Upon the occurrence of fire, flood, earthquake, strike, riot or other catastrophe or emergency which directly affects city operations or the welfare of the City's citizens, the City Manager may declare a state of emergency to exist. Upon the declaration of a state of emergency, the City Manager may require any or all regular full-time employees of the City to work overtime or off-shift as he or she shall determine to protect life and property within the City. 6.9 Applicability of Fair Labor Standards Act. The parties agree that if the applicability of the Fair Labor Standards Act to local governmental entities is eliminated by either legislative or judicial action, they shall meet and confer regarding any proposed changes to this Agreement; however, no such changes shall be made except on mutual agreement. 6.10 Court Appearance. Compensation for court appearance by employees covered by this Agreement shall be as follows: A. For each required court appearance made by an employee during his or her off- duty time in regard to City business, said employee shall be paid overtime for the period of time from their arrival at court until they are released from court or the court session closes for that day. However, in no case shall an employee receive less than two (2) hours overtime for a court appearance. If separate court appearances are made both in the morning and afternoon of a particular day, a minimum of two (2) hours overtime will be allowed for each session attended. If the employee is not released from a morning session and must remain available for afternoon court, the employee shall be paid overtime for all hours the court is in session that day. The employee must provide a copy of the subpoena requiring his or her attendance to initiate payroll procedures. 32 25F-34 B. A subpoenaed employee scheduled to appear in court on City business during off- duty time may be placed on standby status by the Department Head or his or her authorized representative if the employee can respond to the court, if called, within 60 minutes of the employee's notification. In the event such off-duty employee is on standby status during any court session and is not required to appear in court, such employee shall be compensated two (2) hours on a straight time basis, for each said court session. Such employee may elect, in lieu of paid time, two (2) hours of compensatory time off for standby time and not appearing in court, with the approval of the Department Head. If such off-duty employee on standby actually appears in court, he or she shall be compensated as provided in Subsection A, supra. 33 25F-35 ARTICLE VII 7.0 TRAINING & EDUCATIONAL ASSISTANCE PROGRAM 7.1 Purpose. A. To encourage the employees of the City of Santa Ana to take college courses and special training courses which will better enable them to perform their present duties and prepare them for increased responsibilities. B. To provide financial assistance to eligible employees for education and training. C. To establish eligibility requirements, conditions and procedures whereby such assistance may be provided. 7.2 Eligibility. A. Applications for tuition reimbursement will be considered only from full-time, permanent City employees who have completed probation. B. Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, etc. C. Applications will be approved only for courses directly related to the employee's job or directly related to a promotional position in the employee's occupational specialty. D. Courses not ostensibly related to the employee's job, but which are required to qualify for a degree that is directly related to his or her job, may be reimbursable only after all required occupationally related courses have been completed. E. Prior to receiving tuition reimbursement, employees must submit documentary proof of having received a grade of not less than "C" for the course. If objective ratings are not rendered for a specific course, then a certificate of successful completion must be submitted. F. Approval will be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of a Board of Education. Workshops, seminars, conferences and similar activities not identifiable as a formal course of instruction within the curriculum of a recognized educational institution, do not fall within the purview of this program but may be authorized and funded by the interested department without coordination with the Personnel Services Department. 34 25F-36 G. When an employee is required by his or her Department Head to attend a particular course or seminar, the expense shall be borne entirely by the department. 7.3 Reimbursement. A. Reimbursement will be based on the cost of tuition or registration fees and all required texts and related material for each course. Additional expenses such as meals and parking fees are not reimbursable. B. Costs for required texts are eligible for one hundred percent (100%) reimbursement subject to the following conditions: 1. That a duplicate of the required text(s) was unavailable for loan from the departmental libraries prior to the commencement of course work; 2. That any textbook(s) purchased by the City shall be submitted to the employee's respective departmental library in order that such text(s) may be made available to all employees. C. Maximum tuition reimbursement is one thousand five hundred seventy-five dollars ($1,575) per fiscal year, which the employee may claim either as costs are incurred during the year or as one lump sum. D. Employees shall be limited, for purposes of tuition reimbursement, to a maximum of two (2) collegiate level courses of not more than a total number of units which is equivalent to six (6) "semester" units per semester. One (1) "quarter" unit shall equal two-thirds (2/3) of one (1) "semester" unit. 7.4 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete, in duplicate, an Application for Training and Educational Assistance form and submit it to his or her Department Head prior to the commencement of class(es) or the payment of fees for registration/tuition. B. The Department Head will recommend approval or disapproval based on established criteria and budgetary constraints and then forward the application to the Executive Director of Personnel Services. C. The Executive Director of Personnel Services or his or her designee will approve or disapprove the application for the City Manager. One copy will be returned to the employee and the duplicate will be retained by the Personnel Services Department. It is advisable that the applicant accomplish the procedure so far described in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy prior to the inception of the 35 25F-37 course or disbursement of personal funds. D. The employee will submit his or her copy of the approved application to the Personnel Services Department within three (3) months after he or she has completed the course and received his or her final grade. Such employee must include official verification of his or her final grade with appropriate receipts for tuition and textbook costs. These will be returned to the employee upon request. Applications not submitted to the Personnel Services Department within three (3) months following completion of the course become void. E. Upon receipt of the application and required documentation, the Personnel Services Department will determine whether the completed course of instruction is compatible with the provisions of this Article and will compute the amount of reimbursement, authenticate the application and forward it to the employee's Department Head. F. The Department Head will then authorize the Finance & Management Services Department to reimburse the employee the approved amount out of the budget of the department concerned. 36 25F-38 ARTICLE VIII 8.0 HOLIDAYS 8.1 Legal holidays observed by full-time permanent and probationary employees of the City of Santa Ana are as follows: o January 1 - New Year's Day. o Third (3rd) Monday in January - In observance of Martin Luther King, Jr.'s Birthday. o Third (3rd) Monday in February - In observance of President's Day. o Last Monday in May - In commemoration of Memorial Day. o July 4th - In observance of Independence Day. o First (1st) Monday in September - In observance of Labor Day. o November 11th - In observance of Veteran's Day. o Fourth (4th) Thursday in November - In observance of Thanksgiving Day. o The Friday immediately following Thanksgiving Day. o Last working day before Christmas Day, unless Christmas Day falls on Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof. o December 25th - In observance of Christmas Day. o One (1) Floating Holiday - Any workday selected by the employee with prior permission of the employee's supervisor. o Every day proclaimed by the Mayor of the City as a holiday for City employees. o Any holiday which falls on a Sunday will be observed on the following Monday. o Any holiday which falls on a Saturday will be observed on the Friday preceding the holiday. 8.2 Holidays - Shift Personnel and Employees on Alternate Work Schedules. A. Full-time employees whose regularly scheduled days off are other than Saturday and Sunday shall be entitled to receive twelve (12) working days off during the year in lieu of the holiday benefits specified in Section 8.1 above. However, 37 25F-39 employees with alternative work schedules in the Community Preservation, Police Records, Correctional Records, Fleet Services Divisions, and employees on a 9/80 work schedule shall be credited with 96 hours of Holiday Time at the beginning of every calendar year in lieu of twelve (12) holidays in the year. If any employee working in the above referenced categories separates from employment prior to December 31 of any year and has exhausted 96 hours of holiday time, the value of hours not yet accrued but used shall be deducted from the final paycheck. B. Said substitute holidays may be scheduled by the Department Head or his or her designee, normally during the same month that the holiday is observed by other City employees. An employee entitled to time off in lieu of holidays shall receive that time off in proportion to his or her service at full pay in such capacity during the year. 8.3 Modified Holiday Schedule - Library Employees. Full-time employees assigned to the Library Department shall, during the term of this Agreement, observe holidays on the dates specified in Section 8.1 above. 8.4 A newly appointed employee must actually work at least one (1) day preceding the day a holiday listed in Section 8. 1, supra, actually occurs in order to receive credit for such holiday during the month in which it occurs. An employee separating from the service of the City must actually work at least one (1) day following the day a holiday listed in Section 8. 1, supra, actually occurs in order to receive compensation for the holiday. A newly appointed employee must complete six (6) months of continuous full-time service in order to receive credit for the Floating Holiday listed in Section 1 above. 8.5 Holiday time off may be only be taken in increments of eight (8) hours. Employees assigned to the 4/10 work schedule in the Community Preservation Division of the Planning & Building Agency, in the Fleet Services Division of the Finance & Management Services Agency or the Police Department must use their holidays in ten (10) hour increments. Employees assigned to the 3/11.5 plusl/5.5 work schedule in the Correctional Records Division of the Police Department must use their holidays in 11.5 hour increments. Employees assigned to a 9/80 work schedule must use their holidays in nine (9) hour increments as described in Section 3.2 (C)(3)(d)(1) supra. 8.6 Holiday benefits may not be carried over from one (1) calendar year to the next. 38 25F-40 ARTICLE IX 9.0 VACATION 9.1 Purpose. It is the policy of the City to grant employees vacation leave in order to provide them with a break in their regular work schedule and this purpose will be used as a guide in the administration of the provisions of this Article. 9.2 Regular Vacation Period. A. Regular vacation with pay is granted to each full-time permanent or probationary employee, at the rate of fifteen (15) working days for each completed year of service, accrued at the rate of ten (10) working hours for each completed month of service. Employees hired after August 9, 1979, shall be granted regular vacation at the rate of ten (10) working days for each of his or her first and second completed year of service, accrued at the rate of six and two-thirds (6 2/3) hours for each completed month of service. Thereafter, all such employees shall be granted regular vacation at the rate of fifteen (15) working days for each completed year of service accrued at the rate of ten (10) working hours for each completed month of service. B. An employee who has completed less than one year's service during the calendar year shall receive a proportionate fraction in accordance with the amount of service to his or her credit during the year; provided, however, no employee shall be entitled to, or receive payment for, any vacation until he or she has completed six (6) months of continuous service. C. On or after the first (1st) day of the month following completion of six (6) months of continuous full-time service, an employee may be allowed to take all or a proportionate fraction of his or her earned vacation, subject to scheduling approval of the employee's supervisor. D. Vacation time off may be taken in increments as small as one-half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2). E. Upon completion of two (2) years of continuous service, each employee must take at least five (5) consecutive working days of vacation each year thereafter. F. Computation of Regular Vacation. 1. In computing regular vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the employee would have worked had he or she not been on vacation, shall be deducted from the computation so that one (1) additional day of regular vacation shall be allowed to the employee unless departmental practice provides some other 39 25F-41 manner of compensating for municipal holidays. Should an employee be confined to a hospital for sickness or injury while on authorized vacation, each full day of such confinement, when confirmed by a physician's statement and approval of the Department Head, may be deducted from the computation of vacation expended and charged against the employee's accumulated sick leave. 2. No employee may carry over from one (1) calendar year to the next, more than the equivalent of two (2) regular vacation periods from the previous two (2) years, and vacation not taken beyond that amount is forfeited. A regular vacation period is defined as the maximum amount of vacation earned in a calendar year as provided in Subsection A above. 3. No employee shall have a right to accumulate or split his or her vacations, but the same may be allowed or required by the Department Head. The time at which an employee shall take his or her vacation shall be determined by the Department Head, with due regard for the wishes of the employee and particular regard for the needs of the service. 9.3 Longevity Vacation. A. All current and re-employed employees eligible to receive longevity vacation as of the date of council approval of this agreement shall retain rights to both the existing longevity vacation accrual and cash-out programs. Employees employed as of the date of council approval of this agreement who are not yet eligible to received longevity vacation shall retain rights to the existing longevity vacation accrual program only. They will not obtain any rights to the longevity cash-out program. Any employee hired after the date of council approval of this agreement shall not be eligible for either the longevity vacation accrual or cash-out programs. B. Each permanent employee is granted additional work days of vacation leave with pay for each completed year of full-time, continuous city service as set forth in the following table. This additional vacation shall be designated longevity vacation. Hourly Equivalent Completed Years Additional Days of Additional Days 6 1/2 4 7 1 8 8 1 1/2 12 9 2 16 10 2 1/2 20 11 3 24 12 3 1/2 28 13 4 32 14 4 1/2 36 40 25F-42 15 5 40 16 6 48 17 7 56 18 8 64 19 9 72 20 10 80 C. No employee becomes eligible for longevity vacation until completion of the sixth (6th) year of continuous service, and each employee continues to earn the maximum of ten (10) working days (80 hours) of longevity vacation for each completed year of service in excess of twenty (20) years. D. A period of earlier service does not apply toward longevity vacation accumulation when an employee has had a break in continuous service, unless the break in service is concluded by reappointment, as provided in Section 9-114 of the Civil Service Rules and Regulations, or by reemployment from layoff within one (1) year. Leave of absence without pay, as provided in Article X, Section 10.1E (Sick Leave - Extended), Article X, Section 10.8 (Authorized Absence Without Pay - Long Term) and Article XXIII, Section 23.3 (Catastrophic Leave) herein, does not constitute a break in continuous service as used in this section; however, the leave of absence period shall not be applied toward the accumulation of longevity vacation. Absence on military leave followed by reinstatement, as provided in Section 9-143 of the Civil Service Rules and Regulations, does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of longevity vacation. E. Employees covered by this agreement are permitted to cash-out up to sixty (60) hours of their current year's allocation of longevity vacation accrual on a straight time basis. F. Those employees who are eligible to receive longevity vacation leave shall defer for the duration of fiscal years 2011-12 and 2012-2013 an employee's ability to cash out longevity vacation time. Such deferral shall not affect a qualified employee's ability to be compensated for all accumulated leave upon termination of employment with the City. The ability to cash out longevity vacation time shall be reinstated on July 1, 2013. G. For the period July 1, 2013 through June 30, 2016, qualified employees covered by this Agreement shall be given an option once per fiscal year, to receive cash compensation computed on a straight time basis in lieu of up to a total of one- hundred (100) hours of their longevity vacation leave benefits. H. Effective July 1, 2016, the maximum permitted yearly cash-out of longevity vacation shall revert back to sixty (60) hours per fiscal year. 41 25F-43 9.4 Limitation on Vacation. With the exception of a retiring employee, no employee is granted, and no employee shall be allowed to take any vacation leave with pay in excess of fifty (50) working days (400 hours) in any one year by any combination of the vacations granted in these rules and regulations. Further, no employee may carry over from one (1) calendar year to the next more than the equivalent of one (1) longevity vacation period and the equivalent of one (1) regular vacation period from the previous two (2) years and vacation not taken beyond that amount is forfeited. Therefore, the maximum vacation that an employee with less than six (6) years service could accumulate is thirty (30) working days (240 hours) and only an employee with more than twenty (20) years service could carry over and take the authorized maximum of fifty (50) working days (400 hours) in any one year. 9.5 Excess Usage. If vacation time off is used in excess of that available, such excess vacation time off will, first, be deducted from any available compensatory time off accrual; finally, deducted from the next scheduled salary payment. 9.6 Effect of Extended Sick Leave on Vacation Accrual. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days shall not be considered as service time for regular and longevity vacation accrual purposes. 42 25F-44 ARTICLE X 10.0 OTHER LEAVES OF ABSENCE 10.1 Sick Leave. A. Definition. Except as otherwise provided below, sick leave shall be deemed to mean absence from duty of an employee because of illness, injury, medical, or dental appointment that prevents the employee from performing the duties of his or her position, and shall be deemed to include time in quarantine resulting from exposure to a contagious disease. B. Accrual. Each employee shall be entitled to, and shall earn, one (1), eight (8) hour working day of sick leave for each full calendar month of service in which he is employed by the City with full pay; provided, however, any absence on sick leave for a period of time greater than fifteen (15) consecutive calendar days in any one (1) calendar month shall not be considered to be service entitling an employee to earn sick leave as aforesaid. Subject to the other provisions in this Article, sick leave shall accrue to the credit of each employee to the extent that it is not used. C. Authorized Only When Necessary. Use of sick leave by City employees shall be authorized as follows: 1. Sick leave is not a right which an employee may use at his or her discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Subsection J below. 2. When an accepted industrial illness or injury has caused an employee's absence, for which benefits are required under the State Workers' Compensation Insurance and Safety Act, paid sick leave will be allowed such employee during the first three (3) days of the statutory waiting period. If the workers' compensation related illness or injury continues past the initial three (3) consecutive days, the employee will have the three (3) used sick days re-credited to his or her account, if the employee remains off work longer than 14 days. Paid sick leave will continue until the fourth (4th) day when the City pays the employee workers' compensation benefits for such illness or injury. If the employee does not have sufficient accumulated sick leave at the commencement of such industrial illness or injury, they will be advanced sick leave for this purpose. Subsequently, the City will deduct an equal amount previously advanced from any sick leave accrued by the employee until the total amount is recovered. If the employee terminates before recovery of all advanced sick leave, the City will deduct the unrecovered cost of sick 43 25F-45 leave from such terminated employee's final paycheck, to the extent possible. Commencing with Council approval of this Agreement, the City may authorize employees to use sick leave, vacation, or compensatory time for approved workers' compensation medical appointments as specified herein. The City may authorize use of such leave for City approved medical appointments whenever such appointments cannot be secured outside the employee's regular workday, and salary continuation or workers' compensation benefits are not available. D. Limit. The maximum total accumulation of sick leave with pay shall be two hundred (200), eight (8) hour working days. Sick leave usage of less than a full day shall be charged in minimum increments of one-half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2). E. Extended. The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of his or her accrued sick leave if the City physician or a licensed physician designated by the City Manager indicates that the employee will be sufficiently recovered to return to his or her employment within a six (6) month period. Prior to the expiration of the additional time, the employee may return to his or her position provided that the employee has a certificate from one of the above mentioned physicians stating that the employee is able to perform all the duties of his or her position without qualification. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year without pay. F. Extension by Use of Accrued Compensatory Time Off and/or Vacation. After an employee's sick leave has been exhausted, he or she may be granted permission to use, first, any unused compensatory time off benefits, then, any unused vacation leave benefits he or she may have accrued. G. Notice. The employee taking sick leave shall notify his or her immediate supervisor either prior to or within four (4) hours after the time he or she is scheduled to report for duty, or as otherwise established by departmental regulations. When the absence is more than three (3) consecutive working days, the employee must present to his or her Department Head a physician's certificate stating the cause of illness and that, in the physician's opinion, the employee could not report to work because of such illness or injury and that the employee is sufficiently recovered to safely return to work. Such certificate shall be transmitted to the Executive Director of Personnel Services with the report of the employee's return to work. Upon prior written notice given to an employee a physician's certificate or other satisfactory written evidence of actual illness or injury may be required after any 44 25F-46 future absence of any duration less than three (3) days. Such written notice shall be approved by the Department Head or designee and the stated reason therefore. H. Denial. No employee shall be entitled to sick leave with pay while absent from duty because of sickness or injury purposely self-inflicted or caused by willful misconduct; or, sickness or disability sustained while engaged in employment other than employment by the City, for monetary gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation. L Excess Usage. If sick leave is used in excess of that due and available an employee, such excess sick leave will, first, be deducted from any available compensatory time off benefit; second, from any available vacation leave benefit; finally, deducted from the next scheduled salary payment. J. Necessity Leave. Each employee shall be afforded the opportunity to use up to 48 hours of sick leave per calendar year, on a non-cumulative basis, as personal necessity leave. All of this personal necessity leave may be used to attend to an illness of a child, parent, or spouse of the employee. As used in this section, "child" means a biological, foster, or adopted child, a stepchild, a legal ward, or a child of a person standing in loco parentis; "parent" means a biological, foster, adoptive parent, a stepparent, or a legal guardian; and "immediate family" means any member of the employee's household related by blood or marriage; a parent, parent-in-law, spouse, child, brother, sister, grandparent, or grandchild of the employee, regardless of residence; any other relative of the employee by blood or marriage, where it can be established by the employee that the employee's presence is required to handle emergency arrangements and/or other matters. Up to three (3) days of this personal necessity leave may be used: a) to attend to a serious accident to members of the employee's immediate family; b) childbirth; c) to cope with imminent danger to the employee's family, home, or other valuable property; d) when the existence of external circumstances beyond the employee's control make it impossible for him or her to report for duty; or e) attend to medical or dental appointments for members of the employee's household. For the purposes of this section only, a "day" shall be defined as the number of hours of work that an employee is required to work according to his or her specific workday schedule. K. Payment for Unused Sick Leave. 1. Except in cases of disability retirement, upon non-disciplinary termination of employment after ten (10) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for one- third (1/3) of the total sick leave benefit credited to his or her account upon the effective date of such termination, not to exceed a maximum 45 25F-47 limit of fifty-three and one-third (53.33) eight (8) hour working days, at the rate of pay effective on the date of such termination. For employees who have at least ten (10) years of service with the City prior to October 1, 2010, the maximum sick leave cash-out after ten (10) years of service shall be equal to 427 hours (53.33 x 8). Thereafter, for employees with less than ten (10) years of service as of September 30, 2010, the maximum sick leave cash-out after ten (10) years of service shall be equal to 325 hours (40.625 x 8). At the employee's election, payment of unused sick leave may be received in either a lump sum of money, or in equal monthly payments for a period of up to five (5) years. A lump sum payment shall be made to the beneficiaries of any eligible employee whose death occurs while such employee is an active employee of the City, such payment to be in the amount of one-third (1/3) of the total sick leave benefit credited to the employee's account at the time of his or her death, and at the rate of pay effective on the date of death. 2. At his or her option, an employee may convert any lump sum payment provided herein into health insurance premiums, to the extent necessary to provide the employee and his or her designated eligible dependents, if any, with benefits under the health insurance program maintained by the City. The City's obligation to pay such premium shall terminate upon the happening of any of the following events: a. Premiums have been paid on behalf of the former employee until all monies are exhausted; or b. The sum of premiums paid equals one hundred fifty percent (150%) of the amount of the lump sum payment that the employee would have received for unused sick leave benefits had this option not been elected. C. Except in cases of disability retirement, upon non-disciplinary termination of employment after fifteen (15) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for two-thirds (2/3) of the total sick leave benefit credited to his or her account upon the effective date of such termination to be applied toward health insurance premiums only as specified in Section K (2) above excluding Subsections a and b. 46 25F-48 10.2 Bereavement Leave. A. An employee shall be granted up to three (3) working days leave without loss of pay in case of death of a member of the employee's immediate family. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: 1. Any member of the employee's household related by blood or marriage; 2. A parent, parent-in-law, stepparent, spouse, child, stepchild, brother, stepbrother, sister, stepsister, grandparent or grandchild of the employee, regardless of residence; 3. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required to handle funeral arrangements and/or matters of estate. B. An employee may use up to sixteen (16) hours of additional leave charged to their Personal Necessity Leave balance when authorized by the Department Head. 10.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if he or she furnishes the Executive Director of Personnel Services satisfactory proof of his or her order to report for duty. Upon return and upon showing of proof of actual service pursuant to such orders, he or she will be reinstated as provided in Section 143 of the Civil Service Rules and Regulations of the City of Santa Ana. B. Temporary. Members of the reserve forces of the United States, or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code, will be granted leave with pay not to exceed thirty (30) calendar days in each calendar year after one (1) year's service with the City upon presenting satisfactory proof of orders to and from such temporary active duties. 10.4 Jury and Witness Leave. When an on-duty employee is called to serve as a juror or non- party witness in any court action, he or she shall be allowed to leave for the time actually required for such service without loss of pay. Each on-duty employee called for such service shall present to his or her Department Head for examination the subpoena calling him or her to such service and shall pay into the City Treasury the fees collected for such service, with the exception of reimbursement for transportation expenses, if any. 10.5 Examination Leave. Employees participating in examinations conducted during their normal working hours for positions in the competitive service of the City of Santa Ana 47 25F-49 will be granted leave with pay for the time actually required without loss of any accrued vacation time off benefits. 10.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. Absence from duty without leave for five (5) consecutive working days shall be deemed a resignation from the service; provided, however, if upon return to duty the person so absenting himself or herself makes an explanation satisfactory to the Department Head regarding the cause of his or her absence, the Department Head may restore him or her to his or her position, with the City Manager's approval. 10.7 Authorized Absence Without Pay - Short Term. Absence without pay not to exceed five (5) consecutive working days may be authorized by the Department Head. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the Department Head with the approval of the City Manager. Such an absence may be authorized only if in the judgment of the Department Head it serves the best interest of the City. 10.8 Authorized Absence Without Pay - Long Term. Upon receipt of a written request from an employee having permanent status, plus action by the Department Head recommending approval of the request, the City Manager may grant a leave of absence without pay for up to six (6) months. An employee returning to duty with the City shall inform the Department Head and the Executive Director of Personnel Services of his or her intention at least thirty (30) calendar days prior to the expiration of the six (6) month period, or shorter period if the full six (6) months is not taken. Upon receipt of such notice, the Department Head will take steps necessary to restore the employee to his or her former position. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year leave of absence without pay. 10.9 Industrial Leave. Any period of time during which an employee is required to be absent from his or her position by reason of an industrial injury or industrial illness for which he or she is entitled to receive compensation shall not be considered a break in continuous service for the purpose of his or her right to salary adjustments or to the accrual of vacation and seniority. 10.10 Pregnancy Disability Leave. A pregnant employee is entitled to a reasonable leave of absence without pay for any temporary disability resulting from pregnancy, miscarriage, childbirth or recovery therefrom. Such reasonable leave of absence shall not exceed four (4) months. However, an employee may be granted up to an additional two (2) months of leave, at the discretion of the City Manager, for a total of up to six (6) months in which to recover from the disability if substantiated by a physician's certificate. 48 25F-50 Employees may take an unpaid leave of absence during pregnancy disability consistent with the law. As with all other temporary disabilities, a physician's certificate is required to verify the extent and duration of the temporary disability. An employee who plans to take a pregnancy leave must give a reasonable notice (not less than four (4) weeks) before the date she will take the leave and the estimated duration of the leave. Health and welfare insurance coverage will be continued only if the employee pays a cash premium to continue coverage while on a leave of absence without pay or is covered under the Family Medical Leave Act (FMLA) or California Family Rights Act (CFRA) provisions. 49 25F-51 ARTICLE XI 11.0 EMPLOYEE INSURANCE 11.1 Health Insurance. The City shall contribute the following amounts toward the payment of premiums for affected employees and their dependents under the existing health insurance programs or new program or programs providing substantially similar or improved coverage and benefits selected in accordance with procedures in effect on the effective date of this Agreement: A. For each such employee who is covered under a spouse's non-City sponsored health plan, the City will pay the employee a cash payment each month in an amount equal to 50% of the monthly premium amount for the City's lowest "employee-only" coverage, if said employee waives, in writing, City-paid coverage. B. Effective January 1, 2008, January 1, 2009, and January 1, 2010,_respectively, the City shall contribute toward medical premiums an amount consistent with the rates then in effect for each tier of the Ca1PERS Kaiser Permanente HMO Other Southern California plan. C. Effective January 1, 2011 the City shall contribute toward medical premiums an amount consistent with the rates then in effect for each tier of the lowest priced available Ca1PERS approved HMO medical plan for the Other Southern California Region plan. Additionally, employees hired after January 1, 2012 shall also reimburse the City for the purchase of medical insurance through the City through a payroll deduction in an amount equal to the lesser of ten percent (10%) of the value of the rates then in effect for each tier of the lowest priced available CalPERS approved HMO medical plan for the Other Southern California Region plan, or $50 per month. E. Any contribution necessary to maintain benefits under said medical plans in excess of the amount set forth above shall be borne entirely by the employee. 11.2 Dental Insurance. Effective January 1, 2007, the City contribution amount will be increased to a maximum of up to ninety ($90) dollars per month per employee. This contribution amount of ninety ($90) dollars per month per employee shall remain in effect during the term of the Agreement, which expires June 30, 2013. Any contribution necessary to maintain benefits under said dental plans in excess of the amount set forth above shall be borne entirely by the employee. 11.3 Long-Term Disability (L.T.D.) Insurance. Effective January 1, 2002, for the term of this Agreement, the City shall contribute up to a maximum of ten dollars and thirty-nine cents ($10.39) per month to employees enrolled in the 130 day elimination period LTD plan. 50 25F-52 For employees who elect to upgrade their LTD benefit coverage to a 60 day elimination period plan, the City will contribute up to eleven dollars ($11.00) per month. Any amount necessary to maintain benefits under the long term disability insurance plans provided by the City in excess of the amounts set forth above shall be borne by the employee. 11.4 Life Insurance. The City shall maintain in effect for the term of this Agreement its existing life plans covering employees covered by this Agreement on the same basis as its plans are offered to the employees as of June 30, 1998, including term life insurance coverage for each affected employee in the amount of twenty thousand dollars ($20,000) plus twenty thousand dollars ($20,000) Accidental Death and Dismemberment (AD&D) coverage at no cost to the employee. 11.5 When there is a need to discuss matters relating to employee insurance and the City believes it would be beneficial to involve an Insurance Committee, the Union shall have an equal number of representatives as the City on such a committee to meet as necessary. 11.6 Medical Retirement Subsidy Plan. A. Based on the first payroll period in October, 2001 and no later than October 31st each year thereafter for the term of this Agreement, the City shall contribute to a fund an amount of money equal to one-half of one percent (.5%) of the bargaining unit's salary base for the purpose of providing a retiree health insurance subsidy plan. Eligibility for and the specific payments made to members of the bargaining unit pursuant to this plan shall be designated at the sole discretion of SEIU. The plan shall be administered by the City, at no cost to the Union or its members pursuant to the written directives of SEIU. The funds contributed by the City will be maintained in such a manner as to insure that the funds are invested in a reasonably secure plan that bears a reasonable rate of interest/growth given current financial markets. For purposes of this Agreement, investments made pursuant to the then current Statement of Investment Policy for the City of Santa Ana, shall be deemed to meet the requirements of this section. This program is for medical insurance premium reduction only and will be implemented by February 1, 2002 for an employee retiring after July 1, 2001. If an employee retires between July 1, 2001 and February 1, 2002, he or she will be eligible to participate in said plan; however, in no event, will he or she be eligible to utilize this program until February 1, 2002. Additionally, in no event shall said employee(s) be eligible for retroactive medical premium reduction assistance prior to February 1, 2002. B. Effective July 1, 2004, July 1, 2005, and July 1, 2006, respectively, the City's contribution toward the Medical Retirement Subsidy Plan shall increase by 0.1 % each year under the conditions specified in Section 11.6 A above. C. Effective October 1, 2007, the City's contribution toward the Medical Retirement Subsidy Plan shall increase by 0.2% under the conditions specified in Section 51 25F-53 11.6 A above. With this contribution amount, the City's contribution toward the SEIU Medical Retirement Subsidy Plan shall equal 1.0% of the bargaining unit's salary base (including assignment pays). D. Effective October 1, 2008, the City's contribution toward the Medical Retirement Subsidy Plan shall increase by 0.4% under the conditions specified in Section 11.6 A above. With this contribution amount, the City's contribution toward the SEIU Medical Retirement Subsidy Plan shall equal 1.40% of the bargaining unit's salary base (including assignment pays). E. Effective October 1, 2009, the City's contribution toward the Medical Retirement Subsidy Plan shall increase by 0.35% under the conditions specified in Section 11.6 A above. With this final contribution amount, the City's contribution toward the SEIU Medical Retirement Subsidy Plan shall equal 1.75% of the bargaining unit's salary base (including assignment pays). F. For fiscal years 2010-11, 2011-12, and 2012-13, the City's annual contribution toward the Medical Retirement Subsidy Plan shall be decreased from 1.75% to 1.0%. Effective fiscal year 2013-14, the City's annual contribution shall revert to 1.75%. 11.7 Vision Plan. The City shall offer a non-contributory vision plan through payroll deduction for employees wishing to participate in such a plan. 52 25F-54 ARTICLE XII 12.0 RETIREMENT 12.1 General. The terms of the existing contract between the City and California Public Employees' Retirement System (CalPERS) governing the City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to make contributions to CalPERS in accordance with its contract with Ca1PERS for affected employees covered by said contract as amended. 12.2 Deferred Retirement. The City will continue to make payment to CalPERS on behalf of each affected employee, in an amount necessary to pay one hundred percent (100%) of his or her individual retirement contribution which is equal to seven percent (7%) and will increase to eight percent (8%), effective January 1, 2009. Such payments shall be credited to the individual employee's Ca1PERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this Agreement shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and, thus will not withhold Federal or State income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by fourteen (14) salary rate ranges (7%), or sixteen (16) salary rate ranges (8%), after January 1, 2009. For the purpose of reporting an employee's compensation to CalPERS, the City shall include these payments as if they were a part of the employee's base salary. 12.3 2% at 55 Retirement Benefit. Effective July 1, 1997, the City agreed to pay 2.266% of the cost of providing Ca1PERS 2% at 55 retirement benefit to employees of this unit. Employees agreed to pay one percent (1%) of the total cost of 3.266% for the 2% at 55 retirement benefit by authorizing a one percent (1%) deduction from their salary (two (2) salary rate ranges) effective July 1, 1997. Effective November 1, 2001, this one percent (1%) deduction is eliminated. 12.4 Credit for Unused Sick Leave. Effective January 1, 2002, or as soon as practicable thereafter, an employee covered by this Agreement, can have unused accumulated sick leave at the time of retirement converted to additional service credit at the rate of 0.004 years of service credit for each day of unused sick leave (i.e., 200 days of sick leave equals .80 additional year's of service credit). The City must report only those days of unused sick leave that were accrued by the employee during the normal course of 53 25F-55 employment. This section applies to members whose effective date of retirement is within four (4) months of separation from employment. 12.5 Military Service Credit as Public Service. Effective January 1, 2002, or as soon as practicable thereafter, an employee covered by this Agreement may elect to purchase up to four (4) years of service credit for any continuous active military or merchant marine service prior to employment. The employee must contribute an amount equal to the contribution for current and prior service that the employee and the employer would have made with respect to that period of service. 12.6 2.7% at 55 Service Retirement Benefit for Miscellaneous Members. Effective January 1, 2009, the City agrees to amend its retirement contract with CalPERS to provide Miscellaneous employees covered by this agreement with the 2.7% at 55 Service Retirement benefit. Pursuant to CalPERS regulations, this new formula will apply to employees that are in active status on the date this amendment takes effect. This new formula will apply to each year of eligible service credited with the City of Santa Ana. Payment toward the 2.7% at 55 Service Retirement Benefit. Miscellaneous employees covered by this Agreement agree to pay 8.0% of Ca1PERS reportable compensation toward the cost of the 2.7% at 55 enhanced retirement formula as set forth in Article IV, Section 43A. Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 54 25F-56 ARTICLE XIII 13.0 TOOL REIMBURSEMENT POLICY 13.1 Employees classified as Fleet Equipment Technician I, II, or III, or Fleet Equipment Supervisor shall continue to provide such tools as are ordinarily used in the trade which shall be the personal tools of the mechanic. The City will continue with one (1) or more vendors an account(s) for said employees who have at least one (1) year of service in such classifications. Such employees shall be allowed up to $900 per fiscal year with such vendor(s) in order to purchase tools which, in the sole determination of the Fleet Services Manager, are necessary for the performance of such employee's job duties. The City's policy and procedure for the replacement of stolen tools shall be the same as it existed prior to the effective date of this Agreement. The City shall bear no liability or responsibility for such tools except as provided in this Section. 55 25F-57 ARTICLE XIV 14.0 UNIFORM MAINTENANCE 14.1 All employees who are required by the City to wear a uniform while on duty shall continue to be provided seven (7) sets of clean uniforms every two (2) weeks at no cost to the employees. All field/yard maintenance, custodial and equipment repair employees shall be provided eleven (11) clean sets every two (2) weeks at no cost to the employee. All Police Records Personnel and the Senior Office Assistants assigned to the traffic window shall be provided three (3) sets of uniforms made of Dacron and one (1) wool sweater. The Union agrees that any such employee who wishes to be provided with one (1) or more additional clean sets per week above the amounts specified above will be required to pay the extra cost incurred for such additional set(s). 56 25F-58 ARTICLE XV 15.0 SAFETY 15.1 General. The City and the employees of the City agree to comply with all applicable Federal, State and local laws, and the City of Santa Ana regulations, which relate to health and safety. 15.2 Central Safety Committee. The Union may designate two (2) representatives and two (2) alternates to serve on the City's Central Safety Committee. 15.3 Safety Shoes. A. The City agrees to pay up to two hundred dollars ($200) per fiscal year per affected employee, for the purchase and/or repair of approved safety shoes/boots. The option of purchase and/or repair shall be at the sole discretion of the employee. B. All safety shoes/boots purchased under this program must have steel reinforced toes and insteps and bear the official stamp of approval from the American National Standards Institute (ANSI), z-41. C. If a particular classification of employment is designated as requiring its incumbents to wear safety shoes, then it will be mandatory for all incumbents of that classification to wear the type of safety shoes (boot or low-quarter) deemed to be appropriate by the Department Head. (Some exemptions may be allowed, on a case-by-case basis, depending on the type and amount of exposure to hazard in particular positions and subject to the approval or disapproval of the City's Safety Officer.) D. The procedure necessary to be followed for the implementation and operation of this program shall be in accordance with the existing policies and procedures as previously established by the City. 57 25F-59 ARTICLE XVI 16.0 RESIDENCY 16.1 Employees covered by this Agreement are permitted to reside outside the limits of Santa Ana so long as such residency is not an unreasonable distance from, nor requires an unreasonable response time to, the particular employee's place of employment. It shall not be deemed an unreasonable distance within the meaning of this section if the employee resides within the area of a circle drawn with the City Hall of the City of Santa Ana as the center and the radius of which extends to the southern most point of the County of Orange, or if the employee otherwise resides within twenty-five (25) miles of regularly scheduled Metrolink, bus, or other common carrier transportation service to Orange County. A. Any employee desiring to take advantage of the opportunity to reside outside of the area stated within this section shall first request permission to do so from the Department Head. Said request shall be granted by the Department Head if he or she determines the intended residence is not an unreasonable distance from and/or does not require an unreasonable response time to the employee's place of employment. B. If the Department Head refuses the said request, the employee shall have a right to appeal said determination to the City Manager. 58 25F-60 ARTICLE XVII 17.0 GRIEVANCE REVIEW PROCEDURE 17.1 Definition of a Grievance. A grievance shall be defined as a timely complaint by an employee or group of employees or the Union concerning the interpretation or application of specific provisions of this Agreement, or of the rules and regulations governing personnel practices or working conditions of the City, except, however, those matters specifically assigned to the jurisdiction of the City Personnel Board by those provisions of the City Charter and the Civil Service Rules and Regulations. 17.2 Informal Process - First Step. A. An employee and/or his or her designated representative must first attempt to resolve the grievance on an informal basis through discussion with his or her immediate supervisor without undue delay, but in no case, beyond a period of fifteen (15) working days after the occurrence of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance. B. Every effort shall be made to find an acceptable solution to the grievance through this informal means at the most immediate level of supervision. C. In order that this informal procedure may be responsive, both parties involved shall expedite this process. If, within fifteen (15) working days, a mutually acceptable solution has not been reached at the informal level, the employee and/or the employee's designated representative shall then set forth the grievance in writing, indicate the nature of the action desired, sign it, and submit it in duplicate to the employee's Department Head. At this point, the grievance review process becomes formal. Should the grievant fail to file a written grievance, and in the manner specified above, within fifteen (15) working days after first discussing the grievance with the employee's immediate supervisor, the grievance shall be barred and waived. D. Any resolution of the grievance at the informal stage by any person other than a middle manager or above shall not become precedence or be used to establish past practice regarding implementation, interpretation, or application of this Agreement. 17.3 Formal Process. A. Second Step. The Department Head or his or her designated representative shall meet with the employee and/or the employee's designated representative within fifteen (15) working days after the grievance has been submitted to the Department Head. The Department Head, or his or her designated representative, 59 25F-61 shall review the grievance and may affirm, reverse or modify the disposition made at the First Step and shall deliver his or her answer to the employee and/or the employee's designated representative within ten (10) working days after said meeting. B. Third Step. If the grievance is not satisfactorily resolved at the Second Step, the employee and/or the employee's representative may submit the grievance in writing to the City Manager or his or her designated representative within thirty (30) days of being informed of the disposition made at the Second Step. Failure of the grievant and/or his or her designated representative to take this action will constitute a waiver and bar to the grievance, and the grievance will be considered settled on the basis of the disposition made at the Second Step. The City Manager or his or her designated representative shall meet with the employee and/or the employee's designated representative within fifteen (15) working days after submission of the grievance. The City Manager, or his or her designated representative, after careful review, may affirm, reverse, or modify the disposition made at the Second Step and his or her decision, which shall be final and binding, shall be delivered in writing, to the employee and/or the employee's designated representative within fifteen (15) working days after said meeting. A copy of the written grievance to the City Manager, or his or her duly authorized representative, and of the City Manager's or his or her representative's written decision, shall be filed in the personnel records of the department and the grievant's personnel jacket maintained in the City Personnel Services Department. 17.4 Reservation of Rights. After the procedure set forth in this Article has been exhausted, the grievant, the Union, and the City shall have all rights and remedies to pursue said grievance under the law. 60 25F-62 ARTICLE XVIII 18.0 UNION RIGHTS 18.1 Release Time for Union Grievance Representatives. The Union shall have the right to appoint/elect a reasonable number of representatives who are recognized by the City as officers or work site leaders/stewards. A. Such reasonable number of work site leaders/stewards recognized by the City shall be limited to sixteen (16). B. The City's Employee Relations Manager shall be provided with a list of names and classification titles of the Union's officers as set forth in the Santa Ana City Employees, Chapter 1939/Service Employees International Union Local 721 Bylaws, as well as the names and classification titles of all work site leaders/stewards and other Union representatives. The Union agrees to inform the City in writing of any changes in said list within ten (10) calendar days. C. During the term of this Agreement, the City agrees to grant up to a total of two hundred (200) hours per fiscal year on a non-cumulative basis to enable the officers and worksite leaders/stewards to assist other bargaining unit employees in processing grievances under the Grievance Review Procedure; provided, however, that such officers and worksite leaders/stewards shall make advance arrangement with their supervisors prior to absenting themselves for such purpose. The officers and worksite leaders/stewards shall be required by the City to record and report to their supervisors the work time spent in assisting other bargaining unit employees pursuant to this provision of the Agreement. D. Union Business Leave Time. In addition to the two hundred (200) hours per fiscal year provided by the City on a non-cumulative basis, officers and worksite leaders/stewards shall be granted an additional three hundred (300) hours per fiscal year on a non-cumulative basis paid by the Union from the bank of hours or directly by the Union. The purpose of this additional three hundred (300) hours per fiscal year shall be to enable the officers and worksite leaders/stewards to assist the bargaining unit employees in processing grievances under the Grievance Review Procedure and for union activities which may include conventions, seminars and meetings. However, such officers and worksite leaders/stewards shall make advance arrangements with their supervisors prior to absenting themselves for such purposes. The officers and worksite leaders/stewards shall be required by the City to record and report to their supervisors on the work time spent on Union business. Time spent by the Union President, officers or worksite leaders/stewards on President's leave and/or Union Business leave time, under this MOU, shall not be considered time worked for computation of overtime according to the Fair Labor Standards Act. 61 25F-63 E. President's Leave Time. During the term of this Agreement, the City agrees to grant the Union President twenty (20) hours per week paid time off which shall be charged against a Union Leave Bank and subject to the following terms and conditions: 1. The Union President will conduct any Union business performed during the twenty (20) hours per week off the worksite. However, the President may conduct Union business on worksites pursuant to Article XVIII, Section 18.2, Worksite Access provision of the MOU. 2. The Department Director of the Union President may approve additional time off for the Union President for Union seminars and other business on a prescheduled basis. Such additional time off shall be paid for by the Union or from the President's vacation or compensatory time bank. 3. The Department Director of the Union President will schedule the Union President to be offsite for four (4) hours each day to conduct Union business, upon request of the Union. The Department Director shall schedule the Union President to be offite working on City business four (4) hours each day five (5) days a week. The Department Director may change the schedule of the Union President upon reasonable notice to the Union President. 4. During the period of time the Union President is performing City work, he or she shall receive no phone calls or visitors. Persons who call or wish to see the Union President during his or her work time shall be referred to the Union's offsite headquarters. 5. Time paid for conducting Union business shall not count towards the computation of overtime. 6. The Union shall reimburse the City for 100% of the salary, including any premium payments and benefit costs for the President's leave time. Such reimbursement may be from the bank established pursuant to this Agreement or directly from the Union. 7. The Union agrees to pay for Union Leave and President's Leave within thirty (30) days of receiving the bill from the City. The bill will be sent on a monthly basis. If the bill is not paid within thirty (30) days, the City shall deduct such amount from the Union dues collected from the employees on behalf of the Union. In the event a portion of the bill is rightfully contested, the City shall only deduct the non-contested portion from employee's dues. Any issues related to the bill must be brought to the attention of the Executive Director of Personnel Services within fifteen (15) days of its receipt and must be resolved within fifteen (15) remaining 62 25F-64 days so that the bills are paid in a timely manner as stated (within thirty (30) days of its receipt). 8. The Union shall provide an insurance policy or policies, or certificate of such insurance, naming the City of Santa Ana, its officers and employees as insured or additional insured which provides coverage against liability for any and all claims and/or suits for damages or injuries to persons or property resulting from or arising out of any act or omission of said Union representative. Said policy or policies of insurance shall provide coverage for both bodily injury and property damage not less than the following minimum amounts: One million dollars ($1,000,000) combined single limit or its equivalent. Said policy or policies shall also contain a provision that no termination, cancellation or change of coverage of insured or additional insured shall be effective until thirty (30) days notice thereof has been given in writing to the City of Santa Ana. 9. The Union shall provide the City of Santa Ana with an insurance carrier certifying that it carries primary workers' compensation insurance on behalf of said Union representative and the policy shall not be canceled nor coverage reduced except upon ten (10) working days prior notice to the City of Santa Ana. 10. The Union shall indemnify and save harmless the City of Santa Ana, its officers and employees from and against any and all damage to property or injuries to or death of any person or persons, including property and employees or agents to the City of Santa Ana. The Union shall defend, indemnify, and save harmless the City of Santa Ana, its officers and employees from any kind and all claims to demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitations, workers' compensation claims, resulting from or arising out of the negligent acts, errors, or omissions, arising out of the intentional or malicious acts of the Union's representatives. 11. The Union and the City of Santa Ana agree that the Union President will not be required to carry out any City duties during the time the Union President is on President's leave twenty (20) hours per week. The Union President will be required to comply with the rules and regulations of the City of Santa Ana as they apply to off-duty employees, except such Union President will not be required to report for any purpose during the four (4) hours per day or twenty (20) hours per week of Union President's leave time. 12. Upon return to duty from President's Leave of four (4) hours per day, the Union President shall be restored to the same position without loss of any benefits as he or she would have occupied or accrued if there had been no disruption in duty status. For the purpose of providing payment for Union 63 25F-65 President's Leave time and for Union Business Leave time the City and the Union agree to the creation of the following compensation time bank: a. Any member of the Union who has a compensatory time balance, vacation time or accrued in lieu holiday balance of at least two (2) hours or more can voluntarily designate, in writing, that he or she will contribute the value of such time to a bank to be used to pay for President's Leave time and/or Union Business Leave time. In addition, floating holiday pay may also be contributed, but only in increments of eight (8) hours. Such bank shall be for the purposes and subject to the restrictions provided herein. b. The employees' vacation leave, compensatory time and/or accrued or unused holiday pay balance will then be reduced by the amount of hours transferred to the bank. C. Vacation leave time, compensatory time and/or accrued floating or in lieu holiday time, together with the cost of benefits shall be converted to its dollar value at the rate of pay of the employee from whom the leave was received. Those dollars (with benefit cost) shall be placed in the Union Business Leave Bank. When the Union Business Leave Bank is used in accordance with President's Leave and Union Business Leave, dollars will be withdrawn from such Union Business Leave Bank, equal to the hourly rate (with benefit cost) of the employee utilizing the leave multiplied by the number of hours of leave taken. Withdrawal requests from the bank will be for the purpose of conducting Union business, which may include grievance investigation, executive meetings, board of director meetings, training and conventions sponsored by the Union, attendance at grievances and Personnel Board hearings as witness for the Union, President's Leave and other Union purposes as may be determined by the President of the Union. Request for withdrawal from the Bank shall be made only by the President or designee to the Executive Director of Personnel Services on forms mutually agreed to by the parties and furnished by the City. The Union President's Leave or Union Business Leave slip shall be presented to the Executive Director of Personnel Services by the Union for withdrawal from the bank. All vacation leave, compensatory time and accrued floating or in lieu holidays transferred to the bank are final transfers and shall not be recoverable for re-credit to any individual employee's vacation leave account, compensatory time account, or accrued holiday time account. Release of employees for Union Business Leave shall be on the same basis as employees are released from duty for vacation leave, 64 25F-66 except that such requests for leave shall not unreasonably interfere with the operation of the City department and shall be approved by the employee's Department Head. The employee taking Union Business Leave shall not unreasonably interfere with the operation of the City department and shall be approved by the employee's Department Head. The Department Head shall not unreasonably withhold permission to utilize President's Leave time and/or Union Business Leave from any employee who has been duly authorized by the Union to take such leave. No withdrawal from or use of such bank may be made by or on behalf of an employee ordered to take time off without pay for disciplinary reasons. No withdrawal or use of such bank may be made by or on behalf of any employee to be used for purposes that are unlawful under the laws of the United States, State of California or the ordinances of the City of Santa Ana. The Union President shall have up to twenty (20) hours per week or one thousand forty (1,040) hours per year of time off to conduct Union business which shall be paid by the City, but reimbursed to the City by the Union from either the above described bank or directly from the Union treasury. In any event, the Union agrees to reimburse the City for all costs not otherwise reimbursed from the bank providing the Union President with President's leave of absence. Time spent by the Union President on President's Leave time shall not be considered time worked for the computation of overtime according to the Fair Labor Standards Act. 18.2 Worksite Access. A. Officers, worksite leaders/stewards and/or paid Union representatives shall be permitted to visit break and lunch areas designated by the City, before or after work or during designated lunch periods for the purpose of discussing Union business, provided that arrangements are made in advance with the manager responsible for the worksite. B. Such visits shall not disrupt the work of City employees, interfere with the normal operations of the department or with established safety and security requirements. Where any such problems arise, the Union and the City will agree on an alternate meeting/conference facility for the purpose of providing a place for the Union to hold a meeting before or after work or during lunch periods. If the City facility provided the Union as an alternate meeting site during non-working hours is a public meeting room, its scheduling and use shall be governed in accordance with regulations pertaining to the use of public meeting rooms at City facilities. 65 25F-67 C. Solicitations of membership and all activities concerned with the internal management of the Union, such as collecting dues, holding membership meetings, preparation of petitions, preparation of proposals, campaigning for office, conducting elections and distributing literature, shall not be conducted during working hours. D. Officers and employees may perform those duties assigned to them by the Union, but in no event shall they have the right to interfere with the performance of work of any other employee or interfere with City operations or to call a strike, slowdown, work stoppage, sympathy strike or take any economic action against the City. 18.3 Release Time for Employee Representatives. A. In the event that the Union is formally meeting and conferring with representatives of the City on matters within the scope of representation during regular City business hours, a reasonable number of officers, employee representatives or other officials of the Union shall be allowed reasonable time off without loss of compensation or other benefits. B. Such officers and employee representatives shall not leave their duty or work station or assignment without the prior knowledge of their supervisor or such supervisor's supervisor. C. Such meetings are subject to scheduling in a manner consistent with City operating needs and work schedules. 18.4 Use of Bulletin Boards. Space shall be made available to the Union on the City's existing employee bulletin boards for the purpose of posting notices pertaining to Union business, subject to the following conditions: A. Material posted by the Union shall not include campaign material on municipal election matters, including elections for City Council, other City positions, or other municipal political matters. B. Material posted is not derogatory to the City, City employees or other employee organizations. C. All materials are dated, identify the Union and bear the signature of the authorized representative(s) of the Union responsible for their issuance. D. The City reserves the right to determine what reasonable portion of employee bulletin boards are to be allocated to Union materials. 66 25F-68 E. If the Union does not abide by these provisions, it will forfeit its right to have materials posted on the City's employee bulletin boards. F. The Union shall not be permitted to post any material that is prohibited by State law or the City Charter. 18.5 Use of City Facilities. The City shall allow the Union to conduct meetings in the City's public meeting rooms during non-working hours provided such meetings are scheduled in accordance with regulations governing the use of public meeting rooms at City facilities; provided, however, the Union shall not be permitted to use City facilities to discuss or present any matter that is prohibited by State law or the City Charter. 67 25F-69 ARTICLE XIX 19.0 DUES DEDUCTION & INDEMNIFICATION 19.1 Dues Deduction. The City shall deduct dues, on a regular basis, from the pay of all employees recognized to be represented by the Union, who voluntarily authorize such deduction, in writing, on a form to be provided for this purpose by the City. The City shall remit such funds to the Union within thirty (30) calendar days following their deduction. 19.2 Agency Shop. A. All employees represented by the Santa Ana City Employees, Chapter 193 9/Service Employees International Union Local 721, shall, as a condition of continuing employment become and remain members of the Union or shall pay to the Union a service fee in lieu thereof. Such service fee shall be one dollar ($1) per pay period less than Union dues if legally authorized. B. Any employee hired by the City subject to this Memorandum of Understanding shall be provided, through the Personnel Services Department, with an authorization form for the deduction of Union dues. Said employee shall have thirty (30) working days following the initial date of employment to fully execute the authorization form of his or her choice and return said form to the Agency/Department payroll section. The effective date of Union dues, service deductions or charitable contribution for such employees shall be the beginning of the first pay period of employment. C. Any employee of the City subject to this Memorandum of Understanding who wishes to execute a written declaration claiming a religious exemption from paying Union dues, and who is a member of a bona fide religion, body or sect which has historically held conscientious objections to joining or financially supporting a public employee organization and which is recognized as such by the Public Employer Relations Board, shall, upon presentation of verification of active membership in such religion, body or sect be permitted to make a charitable contribution equal to the service fee in lieu of Union membership or service fee payment. Declarations or applications for religious exemption and any supporting documentation shall be forwarded to the Union within fifteen (15) calendar days of receipt by the City. The Union shall have fifteen (15) calendar days after receipt of a request for religious exemption to challenge any exemption granted by the City Manager or his or her designee. If challenged, the deduction to the charity of the employee's choice shall commence but shall be held in escrow pending resolution of the challenge. Charitable contributions shall be by regular payroll deduction only. For purposes of this section, charitable deduction 68 25F-70 means a contribution to one of three non-profit organizations, with the United Way being one of them. The Santa Ana City Employees, Chapter 1939/Service Employees International Union Local 721 shall indemnify and hold the City, its officers and employees, harmless from any and all claims, demands, suits, or any other action arising from the Agency Shop provisions herein. In no event shall the City be required to pay from its own funds, Union dues, service fee or charitable contributions, which the employee was obligated to pay, but failed to pay, regardless of the reasons. 69 25F-71 ARTICLE XX 20.0 CITY RIGHTS 20.1 The City reserves, retains, and is vested with, solely and exclusively, all rights of management which have not been expressly abridged by specific provision of this Agreement or by law to manage the City, as such rights existed prior to the execution of this Agreement. The sole and exclusive rights of Management, as they are not abridged by this Agreement or by law, shall include but not be limited to the following rights: A. To manage the City generally and to determine the issues of policy. B. To determine the existence or nonexistence of facts which are the basis of the Management decision. C. To determine the necessity of organization of any service or activity conducted by the City and expand or diminish services. D. To determine the nature, manner, means, and technology, and extent of services to be provided to the public. E. To determine methods of financing. F. To determine types of equipment or technology to be used. G. To determine and/or change the facilities, methods, technology, means, and size of the workforce by which the City operations are to be conducted. H. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions, including but not limited to the right to contract for or subcontract any work or operation of the City. L To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments. J. To relieve employees from duties for lack of work or similar non-disciplinary reason, subject to the provisions of the City Charter, Municipal Code, Federal and State law and this Agreement. K. To establish and modify productivity and performance programs and standards. 70 25F-72 L. To discharge, suspend, demote, or otherwise discipline employees for proper cause in accordance with the provisions set forth in the City Charter and Santa Ana Municipal Code. M. To determine job classifications and to reclassify employees. N. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with this Agreement. 0. To determine policies, procedures, and standards for selection, training and promotion of employees. P. To establish employee performance standards including but not limited to quality and quantity standards and to require compliance therewith. Q. To maintain order and efficiency in its facilities and operations. R. To establish and promulgate and/or modify rules and regulations to maintain order and safety in the City which are not in contravention with this Agreement. S. To take any and all necessary action to carry out the mission of the City in emergencies. 20.2 Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of Management's rights shall impact on a significant number of employees of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Union regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this Agreement. 71 25F-73 ARTICLE XXI 21.0 STRIKES & WORK STOPPAGES 21.1 Prohibited Conduct. A. The Union, its officers, agents, representatives, and/or members agree that during the term of this Agreement, they will not cause or condone any unlawful strike, walkout, slowdown, sick-out, or any other unlawful job action by withholding or refusing to perform services. B. Any employee who participates in any conduct prohibited in Subsection A above shall be subject to suspension, demotion or dismissal by the appointing authority without right of appeal to the Personnel Board in accordance with City Charter Section 1014. 21.2 Union Responsibility. In the event that the Union, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 1, Subsection A above of this Article, the Union shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this Agreement and unlawful, and they must immediately cease engaging in the conduct prohibited in said Section 1, Subsection A above, and return to work. 72 25F-74 ARTICLE XXII 22.0 LAYOFFS 22.1 If it is decided to contract out work currently being performed by employees of this bargaining unit and it is projected that no employee covered by this Agreement is to be laid off, receive a reduction in hours worked, or receive a loss in pay due to said contracting out, the City shall provide the Union reasonable notice of the decision to contract out, will meet with the Union upon the Union's request over the impact of the decision to contract out and will consider reasonable alternatives provided by the Union. 22.2 If the City determines to contemporaneously replace employees covered by this Agreement with contract workers to perform the same work under similar circumstances, it will expeditiously notify the Union of its intentions. Upon request by the Union the City will schedule meetings with the Union leadership to discuss this objective and give the Union the opportunity to present information before any final decision. The City and Union leadership agree to commence meeting when practicable for a period not to exceed forty-five days, unless mutually agreed to meet longer. At the end of the agreed upon time and if the parties have not achieved satisfactory resolution, the issues will be resolved according to the City's Employer-Employee Relations Resolution (Resolution No. 81-75). 22.3 Notwithstanding Section 22.1 and /or Section 22.2 hereof, if any bargaining unit member is laid off as a result of a decision by the City to contract out work, the City shall make a reasonable effort to cause the affected employee(s) to become employed by the company or entity with which the City contracted for the applicable services. 22.4 It is the hope of the City not to separate any employee(s) from employment because of a reduction in the work force or work week during the term of this Agreement. However, circumstances arising during this Agreement may require such separation(s). In that event, the City will provide reasonable notice to the Union of the details of the separation(s) in order to meet and exchange information, opinions and proposals regarding the consequence(s) of the separation(s) on the employee(s). This provision in not intended to be a waiver of any other rights the parties may have under this Agreement. 22.5 The principles of seniority (length of service) shall govern layoffs as described herein, except in the event that more than one employee has the same seniority date, in which case performance also shall be considered. The City's determination of performance shall not be arbitrary or capricious in nature. Any dispute over the application of the principles outlined in this Article XXII shall be subject to the grievance procedure. A. Classification seniority is defined as length of service in the classification, and shall begin on the first date worked by the employee in that classification. Whenever a position within a classification is to be eliminated, resulting in the 73 25F-75 layoff of an employee, seniority shall govern the order of layoff. The employee with the lowest seniority in the affected classification shall be laid off first. B. In lieu of layoff, an employee may elect to work in a lower classification, in which he or she has served, providing that classification is within the same job family/career ladder. In that event, the employee's length of service in the next lower classification will be added to his or her length of service in the affected classification, and said combined seniority shall be used to bump down into the next lower classification. This method of combining seniority shall be applied to subsequent lower classifications. C. The reemployment list shall be valid for one year from the date of its establishment. Reemployment shall be in reverse order of layoffs. The Joint Labor Management Committee will determine Job Family/Career Ladder. 22.6 A bargaining unit employee who is laid off from full time City employment pursuant to this Article, may be granted a temporary appointment to a vacant position in any classification for which there is no eligible list and for which said employee meets the minimum qualifications established for the classification and possesses the requisite knowledge, skills and abilities to satisfactorily perform the work of the classification. Such temporary appointment will be terminated upon the establishment of a new eligible list for the classification or one year following the initial day of such temporary appointment, whichever occurs first. 22.7 Effective upon Council approval of this agreement, the City agrees that there shall be no layoffs of members of this bargaining unit through December 31, 2011. 74 25F-76 ARTICLE XXIII 23.0 MISCELLANEOUS PROVISIONS 23.1 The City agrees to provide a list each month to the Union with names and classification titles of bargaining unit employees who have separated from full-time City service and the names and classification titles of bargaining unit employees who have been hired. The Union agrees to pay the City's cost of producing said list(s). After ratification of this Agreement by the City Council, a complete list of bargaining unit employees and their addresses will be provided to the Union once every fiscal year. 23.2 The City agrees to distribute Union membership pamphlets to bargaining unit employees at the new employee orientation sessions conducted by the City. 23.3 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of a catastrophic, non-industrial medical condition or injury, the City and Union agree to implement a Catastrophic Leave Donation Program. Nothing herein shall be construed to alter City policies and procedures as provided in the Charter or ordinances of the City of Santa Ana or other provisions of this Agreement with regard to granting unpaid leaves of absence. The Catastrophic Leave benefit will be provided for non-industrial injury or sickness only. The leave shall cover the uncompensated time prior to the employee's becoming eligible for the L.T.D. benefits. A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient. 1. Employees may donate vacation or compensatory time or one in lieu holiday to the eligible employee. In no event shall sick leave be donated. 2. Employees shall be provided a two-week period to submit donations. Donations received after this two-week period shall not be processed. The two-week period for each case shall be designated by the Department Head or his or her designee as provided herein below. 3. All donations must be made in two (2) hour increments and a maximum of eight (8) hours per donor, except in lieu holidays must be for eight (8) hours. 4. Any authorization of donations not made in accordance with the procedures outlined in Section C, Subparagraph 2 below, will not be processed. 75 25F-77 5. All donations shall be irrevocable. 6. In the event the recipient returns to work before leave donations have been exhausted, any balance on the books shall be accrued by the recipient and designated as sick leave and may be used pursuant to Article X, Sections 10.1 A through 10.1 K. 7. Donations shall be limited to employees of this bargaining unit or any other unrepresented unit. B. Eligibility. Regular, full-time employees shall be eligible for Catastrophic Leave Donations if the following criteria are met: 1. When it is reasonably foreseeable that all accrued time on the books, such as sick leave, compensatory time and vacation, will be exhausted and the employee's illness will continue past the time when the employee will be on paid status. 2. The employee's Department Head, or his or her designee, has approved a written request for donations accompanied by a medical statement from the employee's attending physician. The attending physician's statement must verify the employee's need for an extended medical leave and an estimate of the time the employee will be unable to work. C. Procedure. 1. Upon receipt of a valid request for donations from an eligible employee, the Department Head or his or her designee shall post a notice of the eligible employee's need for donations on bulletin boards accessible to employees. No confidential medical information shall be included in the posted notice. 2. Employees wishing to donate time to an eligible employee must sign his or her authorization of the transfer of such donated time and provide: • His or her name, department name, and employee number. • The number of hours of compensatory or vacation time of the donation within the limitations of Section A, subparagraph 3 above; • The name, department and employee number of the recipient; • A statement indicating that the donor understands such donation of time is irrevocable. 76 25F-78 3. At the close of the donation period, the department shall verify that each donating employee has accrued vacation and/or compensatory time balances sufficient to cover the designated donation. 4. The department shall submit all approved donation authorizations for an eligible employee at one time for processing. No donation authorizations for the eligible employee will be processed after this period. However, employees who receive donations under this procedure and who exhaust all donated hours may request an additional donation period subject to the provisions of Section A, herein. 5. The City shall add the donated time to the recipient's sick leave account. 23.4 Joint Labor Management Teams. The City and the Union agree to form Joint Labor Management teams for the purpose of exploring issues of mutual concern. Each team shall be comprised of an equal number of labor and management employees and shall be chaired by the Employee Relations Manager. In no case shall the activity of a team create a delay or hindrance to the ongoing operation of the City. The City and the Union shall hold an initial meeting no sooner than one (1) month from the date of ratification of this Agreement and upon the Union's written request to meet to determine team composition, frequency of meetings and meeting schedules. A. The teams to be formed are: 1. Job Classification Studies (for purposes of identifying positions in which the duties and responsibilities have increased in complexity as a result of City restructuring/job consolidation occurring during the term of the expiring 2004-2010 MOU or during the term of the current 2010-2013 MOU to determine if positions or job families would be appropriate for job classification studies where previously existing positions have been eliminated and/or removed from the list of budgeted positions and higher- level job duties reassigned to or absorbed by other classified positions). For purposes of this section, classification reviews will be conducted pursuant to Article IV, Section 4.13 (A-E). 2. Web Page Hosting (for purposes of developing a City hosted web page presenting explanatory information regarding employee compensation, including illustrated explanation of employee payroll statements to assist mortgage servicers and other similar persons engaged in qualifying employees for loan modifications through either lender or governmental loan modification programs). B. Previously authorized teams to be reconvened as needed: 1. Career Ladder/Job Family (for the purpose of developing career ladder/job family series to be used in promotions or in the event of layoffs). 77 25F-79 23.5 Performance Appraisals. Non-probationary performance appraisals not completed within six (6) months of the due date shall be stayed and the employee shall next become subject to evaluation upon the end of the evaluation period next following. Provided that merit advance performance appraisals shall be completed in accordance with Article IV, Section 4.8. 23.6 Reopener. If due to budget overruns or revenue shortfalls the City anticipates that it will be operating under a budget deficit in the fiscal year 2011-2012 or 2012-13, the union agrees that upon the request of the City made after March 1, 2011, the union will reopen this Agreement for negotiation on the subjects of modifying employee furloughs and employee Ca1PERS contributions. 78 25F-80 ARTICLE XXIV 24.0 SOLE & ENTIRE AGREEMENT 24.1 It is understood and agreed that the parties to this Memorandum of Understanding are subject to all current and future applicable Federal and California laws, the City of Santa Ana Charter and Municipal Code, as well as the City's Employer-Employee Relations Resolution (481-75). It is the intent of the parties hereto that the provisions of this Agreement shall supersede all prior agreements and memoranda of agreement, or memoranda of understanding, or contrary salary and/or personnel rules and regulations or administrative codes, provisions of the City, oral or written, express or implied between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be asserted hereunder. This Agreement is not intended to conflict with Federal or State law or the City Charter. The City will continue to provide employees covered by this Agreement a reduced size copy of this Agreement and its attachments and including a section containing the Employer-Employee Relations Resolution of the City of Santa Ana. 24.2 Notwithstanding the foregoing, there exists within the City personnel rules and regulations and departmental rules and regulations. These rules and regulations shall be continued to the extent they do not contravene specific provisions of this Agreement. Such rules and regulations may, from time to time, be changed by the City. If these changes affect wages, hours, and/or other terms and conditions of employment, the City shall meet and confer with the Union; provided, further, however, no provision of the rules and regulations shall be changed to contravene specific provisions of this Agreement. 79 25F-81 ARTICLE XXV 25.0 WAIVER OF BARGAINING DURING THE TERM OF THIS AGREEMENT 25.1 During the term of this Agreement, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours and terms and conditions of employment, whether or not covered by the Agreement or in the negotiations leading thereto, and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this Agreement. Regardless of the waiver contained in this Article, the parties may, however, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this Agreement. 80 25F-82 ARTICLE XXVI 26.0 EMERGENCY WAIVER PROVISION 26.1 In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this Agreement or the Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended for the duration of such emergency. After the emergency is declared over, this Agreement will be reinstated immediately. The Union shall have the right to meet and confer with the City regarding the impact on employees of the suspension of the provisions in the Agreement during the course of the emergency. 81 25F-83 ARTICLE XXVII 27.0 SEPARABILITY PROVISION 27.1 Should any provision of this Agreement be found to be inoperative, void, or invalid by a court of competent jurisdiction, all other provisions of this Agreement shall remain in full force and effect for the duration of this Agreement, provided that if any such affected provisions invalidate or void any benefits of employees covered hereunder, the parties shall forthwith commence negotiations to replace the invalidated benefits with benefits of comparable value. 82 25F-84 ARTICLE XXVIII 28.0 TERM OF AGREEMENT 28.1 The term of this Agreement shall be from July 1, 2010 through June 30, 2013. 83 25F-85 ARTICLE XXIX 29.0 RATIFICATION & EXECUTION 29.1 The City and the Union have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and the Union acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of the Union and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Agreement is hereby executed by the authorized representatives of the City and the Union and entered into this 20 day of October 2010. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: Mayor Dated: By: City Manager Dated: By: Executive Director of Personnel Services ATTEST: Clerk of the Council APPROVED AS TO FORM: Assistant City Attorney 84 25F-86 This Agreement has been ratified by the membership of the Santa Ana City Employees, Chapter 1939/Service Employees International Union Local 721. Dated: SEIU.- Robert Hunt Legal Counsel Robert Penny General Manager By: Joaquin Avalos, President David J. Rodriguez Gloria Alvarado Gregory Ware Sergio Verino Cecilia Flores Zulma Zepeda Jessica Moreno Paula Wood William Apple Willard Holt Carol Bowers Nasser Rizk Vivian Jaramillo Angelo Giron 85 25F-87 SEN BASIC SALARY & WAGE SCHEDULE EXHIBIT A Page 1 of 2 The City's Basic Salary and Wage Schedule provides for a number of ranges of pay rates (salary rate ranges) each comprised of six pay steps or rates for SEN employees. The salary rate ranges are identified by a three digit number and steps by letters AAA, A to E inclusive. For SEW employees, the purpose of each step and the length of service required for advancement within the rate range are sunnnarized as follows: Purpose: AAA Step - Normal Beginning rate. AA Step - Automatic increase. Also optional hiring rate. A Step - Automatic Increase. Also optional hiring rate. B Step - Automatic Increase. Also optional hiring rate. C Step - Automatic Increase. May also be maximum hiring rate for certain classifications. D Step - Automatic Increase, and is maximum hiring rate. E Step - Merit Rate. Required Length of Service: AAA to AA - After 6 months' completed service AA to A - After one year's completed service. A to B - After one year's completed service. B to C - After one year's completed service. C to D - After one year's completed service. D to E - After 18 months' completed service. In the following salary schedule matrix, each salary range is identified by a three digit number. The first two digits are listed in the first vertical column on the left and the third digit is listed horizontally across the top and identifies the appropriate column. This three digit range number locates the "AAA" step of the range, which is the first of the 7 steps. Steps "AA," "A," "B," "C," "D," and "E" are found in the column directly below the "AAA" step. For example, the "AAA" step of Range No. 401 is found to be $1476 by moving down the left column to the number 40 (the first two digits of the Range No.), then horizontally to column 1 (the third digit of the Range No.). The "AAA" step of $1476 has the remaining steps shown directly beneath it; thus the full, six step range is 1476-1549-1627- 1708-1793-1883-1977. In the same manner, Range No. 455 is found to be 1921-2017-2118-2223-2334-2451-2574. SALARY SCHEDULE MATRIX 0 1 2 3 4 5 6 7 8 9 38 1332 1338 1345 1352 1358 1365 1372 1379 1386 1393 39 1399 1405 1413 1420 1427 1434 1441 1448 1455 1463 40 1469 1476 1483 1491 1498 1506 1513 1521 1528 1536 41 1542 1549 1557 1565 1573 1580 1588 1596 1604 1612 42 1619 1627 1635 1643 1651 1659 1668 1676 1684 1693 43 1700 1708 1717 1725 1734 1742 1751 1760 1769 1778 44 1785 1793 1802 1811 1820 1830 1839 1848 1857 1866 45 1874 1883 1892 1902 1911 1921 1930 1940 1950 1960 46 1968 1977 1987 1997 2007 2017 2027 2037 2048 2058 47 2066 2076 2086 2097 2107 2118 2128 2139 2150 2160 48 2169 2179 2190 2201 2212 2223 2234 2246 2257 2268 49 2277 2288 2299 2311 2322 2334 2346 2357 2369 2381 50 2391 2402 2414 2427 2439 2451 2463 2475 2488 2500 86 25F-88 51 2511 2523 2536 2548 2561 2574 2587 2600 2613 2626 52 2637 2650 2663 2676 2690 2703 2717 2730 2744 2758 53 2769 2782 2796 2810 2824 2838 2853 2867 2881 2896 54 2907 2921 2936 2950 2965 2980 2995 3010 3025 3040 55 3052 3067 3082 3098 3113 3129 3144 3160 3176 3192 56 3205 3221 3237 3253 3269 3285 3302 3318 3335 3352 57 3365 3381 3398 3415 3432 3449 3467 3484 3501 3519 58 3533 3550 3568 3586 3604 3622 3640 3658 3676 3695 59 3710 3728 3747 3765 3784 3803 3822 3841 3861 3880 60 3896 3915 3935 3954 3974 3994 4014 4034 4054 4074 61 4091 4111 4132 4152 4173 4194 4215 4236 4257 4278 62 4296 4317 4339 4360 4382 4404 4426 4448 4470 4493 63 4511 4533 4556 4579 4601 4624 4648 4671 4694 4718 64 4741 4764 4787 4810 4834 4858 4882 4906 4930 4954 65 4978 5002 5026 5051 5076 5101 5126 5151 5176 5201 66 5226 5252 5278 5304 5330 5356 5382 5408 5434 5461 67 5488 5515 5542 5569 5596 5623 5650 5678 5706 5734 68 5762 5790 5818 5847 5876 5905 5934 5963 5992 6021 69 6050 6080 6110 6140 6170 6200 6230 6260 6291 6322 70 6353 6384 6415 6446 6478 6510 6542 6574 6606 6638 71 6670 6702 6735 6768 6801 6835 6869 6903 6937 6971 72 7005 7039 7073 7107 7141 7176 7211 7247 7283 7319 73 7355 7391 7427 7463 7499 7535 7571 7609 7647 7685 74 7723 7761 7799 7837 7875 7913 7951 7989 8029 8069 75 8109 8149 8189 8229 8269 8309 8349 8389 8431 8473 76 8515 8557 8599 8641 8683 8725 8767 8809 8853 8897 77 8941 8985 9029 9073 9117 9161 9205 9250 9296 9342 78 9388 9434 9482 9529 9577 9625 9673 9721 9770 9819 79 9857 9906 9955 10005 10055 10105 10156 10207 10258 10309 80 10350 10401 10453 10506 10558 10611 10664 10717 10771 10825 81 10868 10922 10976 11031 11086 11142 11198 11254 11310 11366 82 11411 11468 11525 11583 11640 11699 11757 11816 11875 11934 83 11982 12041 12102 12162 12223 12284 12345 12407 12469 12532 84 12581 12643 12707 12770 12834 12898 12963 13027 13093 13158 85 13210 13275 13342 13409 13476 13543 13611 13678 13748 13816 86 13871 13939 14009 14079 14150 14220 14292 14362 14435 14507 87 14565 14636 14709 14783 14858 14931 15007 15080 15157 15232 88 15293 15368 15444 15522 15601 15678 15757 15834 15915 15994 87 25F-89 EXHIBIT B SANTA ANA CITY EMPLOYEES CHAPTER 1939/ SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721 FOR FISCAL YEARS JULY 1, 2010 THROUGH JUNE 30, 2013 Assigned 7-Step Salary Rate Range Numbers Effective: 7/01/2010 JOB TITLE RANGE NO. ACCOUNTANTI 632 ACCOUNTANT II 660 ACCOUNTING ASSISTANT 581 ACCOUNTING ASSISTANT/SYSTEMS TECHNICIAN 581 ACCOUNTS PAYABLE SUPERVISOR 635 ARTS ADMINISTRATOR 633 ASSISTANT BUYER 596 ASSISTANT ENGINEER I 700 ASSISTANT ENGINEER II 714 ASSISTANT FLEET EQUIPMENT TECHNICIAN 576 ASSISTANT INSTRUMENT TECHNICIAN 607 ASSISTANT LIBRARIAN 590 ASSISTANT PARKS/LANDSCAPE PLANNER 641 ASSISTANT PLAN CHECK ENGINEER I 700 ASSISTANT PLAN CHECK ENGINEER II 714 ASSISTANT PLANNER I 641 ASSISTANT PLANNER II 661 ASSISTANT TRAFFIC OPERATIONS ENGINEER 714 ASSOCIATE PARK AND LANDSCAPE PLANNER 691 ASSOCIATE PLAN CHECK ENGINEER 729 ASSOCIATE PLANNER 691 BIBLIOGRAPHIC TECHNICIAN 580 BOOKMOBILE OPERATOR 559 BUILDING INSPECTOR 641 BUILDING MAINTENANCE AIDE 559 BUILDING MAINTENANCE SUPERVISOR 651 BUILDING MAINTENANCE TECHNICIAN 599 BUILDING TECHNICIAN 593 BUSINESS TAX COLLECTOR/INSPECTOR 605 BUYER 645 BUYER/SYSTEMS TECHNICIAN 645 88 25F-90 CENTRAL SERVICES SUPERVISOR 605 COMBINATION BUILDING INSPECTOR 641 COMMUNITY CENTER COORDINATOR 641 COMMUNITY CENTER REPRESENTATIVE 600 COMMUNITY DEVELOPMENT ANALYST 656 COMMUNITY DEVELOPMENT DISTRICT MANAGER 711 COMMUNITY DEVELOPMENT RESOURCE COORD 691 COMMUNITY DEVELOPMENT TECHNICIAN 610 COMMUNITY EVENTS COORDINATOR 600 COMMUNITY EVENTS SUPERVISOR 666 COMMUNITY PRESERVATION INSPECTOR 641 COMMUNITY PRESERVATION TECHNICIAN 593 COMMUNITY SERVICES SUPERVISOR 681 COMPUTER OPERATIONS COORDINATOR 696 COMPUTER OPERATOR 605 COMPUTER PROGRAMMER 648 COMPUTER SYSTEMS ANALYST/PROGRAMMER 668 CONSTRUCTION INSPECTOR I 641 CONSTRUCTION INSPECTOR II 651 CONTRACTS ADMINISTRATOR 641 CORRECTIONAL RECORDS SPECIALIST 542 CORRECTIONAL RECORDS SUPERVISOR 614 CUSTODIAL AIDE/PORTER 504 CUSTODIAN 534 CUSTODIAN SUPERVISOR 586 CUSTOMER SERVICE REPRESENTATIVE 589 DATA ENTRY OFFICE ASST 559 DATA ENTRY OPERATOR 550 DATA ENTRY SPECIALIST 559 DEPUTY CLERK OF THE COUNCIL 600 ECONOMIC DEVELOPMENT AIDE 610 ECONOMIC DEVELOPMENT SPECIALIST I 661 ECONOMIC DEVELOPMENT SPECIALIST 11 691 ECONOMIC DEVELOPMENT SPECIALIST III 721 ELECTRICAL INSPECTOR 641 EMPLOYMENT SERVICES FISCAL SPECIALIST 632 ENGINEERING DRAFTING TECHNICIAN I 610 ENGINEERING DRAFTING TECHNICIAN II 641 ENVIRONMENTAL COORDINATOR 691 EQUIPMENT OPERATOR 600 EQUIPMENT OPERATOR - MOTOR SWEEPER (T) 600 89 25F-91 EQUIPMENT OPERATOR - STREET (T) 600 EQUIPMENT OPERATOR - TRAFFIC PAINT 600 EQUIPMENT OPERATOR - WATER MAINTENANCE 600 EQUIPMENT OPERATOR - WATER SERVICES 605 EXECUTIVE SECRETARY 598 FACILITIES SUPERVISOR 651 FINANCE EXECUTIVE SECRETARY 598 FLEET EQUIPMENT SUPERVISOR 665 FLEET EQUIPMENT TECHNICIAN I 606 FLEET EQUIPMENT TECHNICIAN II 626 FLEET EQUIPMENT TECHNICIAN III 641 FLEET PARTS SPECIALIST 616 GENERAL MAINTENANCE AIDE 559 GENERAL MAINTENANCE LEADER 620 GENERAL MAINTENANCE SUPERVISOR 651 GENERAL MAINTENANCE WORKER 599 GIS ADMINISTRATOR 686 GRAPHICS DESIGNER I 602 GRAPHICS DESIGNER II 622 GRAPHICS SUPERVISOR 661 HOUSING AUTHORITY AIDE 532 HOUSING AUTHORITY ANALYST 658 HOUSING AUTHORITY COORDINATOR 721 HOUSING AUTHORITY INTAKE SPECIALIST 547 HOUSING AUTHORITY OPERATIONS SUPV. 679 HOUSING PROGRAMS AIDE 570 HOUSING PROGRAMS ANALYST 679 HOUSING PROGRAMS COORDINATOR 721 HOUSING SPECIALIST I 580 HOUSING SPECIALIST II 604 INFORMATION SERVICES REPRESENTATIVE 594 INSTRUMENT TECHNICIAN 621 INTAKE SPECIALIST 547 KENNEL ATTENDANT 491 LANDSCAPE DEVELOPMENT ASSOCIATE 691 LEAD ACCOUNTING ASSISTANT 615 LEAD CORRECTIONAL RECORDS SPECIALIST 584 LEAD POLICE RECORDS SPECIALIST 594 LEARNING CENTER TECHNICIAN 570 LIBRARIAN 630 LOAN SPECIALIST 631 90 25F-92 MAIL CLERK/MESSENGER 513 MAINTENANCE ASSISTANT 534 MAINTENANCE WORKER I 554 MAINTENANCE WORKER II 574 METER READER COLLECTOR 580 MICRO SYSTEMS PROGRAMMER 676 MICRO SYSTEMS TECHNICIAN 610 NETWORK ENGINEER 716 NETWORK SPECIALIST/WAN SYSTEMS ADMINISTRATOR 676 OFFICE ASSISTANT 532 OFFICE SPECIALIST 507 OFFICE SUPERVISOR 601 PARK MAINTENANCE AIDE 432 PARK MAINTENANCE INSPECTOR I 559 PARK MAINTENANCE INSPECTOR II 603 PARK MAINTENANCE LEADER 603 PARK MAINTENANCE SUPERVISOR 651 PARK MAINTENANCE WORKER 559 PARK NATURALIST 559 PARK RANGER 620 PARKING METER OPERATIONS SUPERVISOR 613 PARKING METER TECHNICIAN I 563 PARKING METER TECHNICIAN II 593 PARKS & REC AIDE 487 PARKS & REC ASSOCIATE 580 PARKS & REC SERVICES ASSISTANT 532 PARKS & REC SPECIALIST 507 PARKS & REC TECHNICIAN 570 PERIODICALS TECHNICIAN 570 PERMIT PROCESSOR 579 PERMIT SUPERVISOR 661 PERMIT TECHNICIAN 631 PLAN EXAMINER (T) 660 PLANNING ASSISTANT 621 PLANNING COMMISSION SECRETARY 598 PLUMBING INSPECTOR 641 POLICE FISCAL OFFICER 679 POLICE FISCAL SERVICES SUPERVISOR 648 POLICE RECORDS SPECIALIST 552 POLICE RECORDS SUPERVISOR 619 POLICE SUPPLY SPECIALIST 580 91 25F-93 POLICE SYSTEMS SUPPORT ANALYST 696 PRINCIPAL LIBRARIAN 650 PRINCIPAL PROGRAMMER ANALYST 716 PROGRAMMER ANALYST 676 PROJECTS MANAGER 701 PROPERTY CONTROL SPECIALIST 580 PROPERTY REHABILITATION ASSISTANT 580 PUBLIC WORKS CREW LEADER 620 PUBLIC WORKS DISPATCHER 564 PUBLIC WORKS PROJECTS SPECIALIST 661 PURCHASING ASSISTANT 570 PURCHASING SPECIALIST 581 PURCHASING SUPERVISOR 690 RECEPTIONIST 547 RECORDS SPECIALIST 575 RECREATION CENTER DIRECTOR 580 RECREATION LEADER 520 RECREATION PROGRAM COORDINATOR 600 RECREATION SUPERVISOR 651 REDEVELOPMENT ASSISTANT 641 REDEVELOPMENT PROJECT MANAGER I 661 REDEVELOPMENT PROJECT MANAGER II 701 REDEVELOPMENT PROJECT MANAGER III 721 REPROGRAPHIC EQUIPMENT OPERATOR 539 RESIDENTIAL CONSTRUCTION SPECIALIST 641 REVENUE AND CONTRACT COMPLIANCE AUDITOR 660 REVENUE PROCESSING ASSISTANT 550 REVENUE SUPERVISOR 635 SANITATION INSPECTOR I 590 SANITATION INSPECTOR II 631 SECRETARY 577 SECURITY ELECTRONICS TECHNICIAN 654 SENIOR ACCOUNTANT 679 SENIOR ACCOUNTING ASSISTANT 596 SENIOR ACCOUNTING ASSISTANT/SYSTEMS TECHNICIAN 596 SENIOR ASSISTANT ENGINEER 729 SENIOR BUILDING INSPECTOR 661 SENIOR CIVIL ENGINEER 752 SENIOR COMBINATION BUILDING INSPECTOR 661 SENIOR COMMUNITY DEVELOPMENT ANALYST 685 SENIOR COMMUNITY PRESERVATION INSPECTOR 661 92 25F-94 SENIOR CORRECTIONAL RECORDS SPECIALIST 569 SENIOR DEPUTY CLERK OF THE COUNCIL 630 SENIOR ELECTRICAL INSPECTOR 661 SENIOR ELECTRICAL SYSTEMS SPECIALIST 661 SENIOR ENGINEER 752 SENIOR FLEET EQUIPMENT SUPERVISOR 685 SENIOR GRADING SPECIALIST 661 SENIOR HOUSING SPECIALIST 642 SENIOR LAND SURVEYOR 762 SENIOR LIBRARIAN 635 SENIOR OFFICE ASSISTANT 559 SENIOR OFFICE SPECIALIST 532 SENIOR PARK MAINTENANCE SUPERVISOR 681 SENIOR PARKS & REC SERVICES ASSISTANT 559 SENIOR PARKS & REC TECHNICIAN (T) 590 SENIOR PLAN CHECK ENGINEER 752 SENIOR PLANNER 711 SENIOR PLUMBING INSPECTOR 661 SENIOR PLUMBING/MECHANICAL SYSTEMS SPEC. 661 SENIOR POLICE RECORDS SPECIALIST 579 SENIOR PROGRAMMER ANALYST 696 SENIOR RECEPTIONIST 577 SENIOR RECREATION CENTER DIRECTOR 585 SENIOR RECREATION SUPERVISOR 681 SENIOR RESIDENTIAL CONSTRUCTION SPECIALIST 661 SENIOR SYSTEMS ADMINISTRATOR 668 SENIOR TRAFFIC ENGINEER 752 SENIOR TRANSPORTATION ANALYST 752 SENIOR WATER MAINTENANCE SUPERVISOR 681 SENIOR WATER SYSTEMS OPERATOR 641 STOCK CLERK 575 STOREKEEPER 610 STREET LIGHTING MAINTENANCE WORKER 610 STREET MAINTENANCE SUPERVISOR 651 STREET PAINTER 594 SUPERVISING ACCOUNTANT 701 SUPERVISING BUYER 675 SUPERVISING LIBRARIAN 663 SUPERVISING PARK RANGER 645 SUPERVISING PARKS & REC SERVICES ASSISTANT 564 SURVEY PARTY CHIEF 674 93 25F-95 SURVEY PARTY TECHNICIAN I 610 SURVEY PARTY TECHNICIAN II 641 SYSTEMS ADMINISTRATOR 636 SYSTEMS SUPPORT ANALYST 696 SYSTEMS TECHNICIAN 576 TELECOMMUNICATIONS COORDINATOR 678 TELECOMMUNICATIONS CUSTOMER SERVICE REP. 589 TENANT SERVICES TECHNICIAN 577 TRAFFIC TECHNICIAN 664 TREASURY SERVICES SUPERVISOR 635 TREE MAINTENANCE SUPERVISOR 651 TREE TRIMMER 594 UTILITIES BILLING/SYSTEMS TECHNICIAN 589 UTILITY INSPECTOR 631 VIDEO TECHNICIAN 632 VISITOR SERVICES COORDINATOR 526 VOLUNTEER SERVICES COORDINATOR 620 WATER MAINTENANCE CREW LEADER 620 WATER MAINTENANCE SUPERVISOR 651 WATER MAINTENANCE WORKER II 574 WATER METER REPAIRER I 579 WATER METER REPAIRER II 599 WATER QUALITY COORDINATOR 671 WATER QUALITY INSPECTOR 631 WATER QUALITY SUPERVISOR 651 WATER SERVICES CREW LEADER 625 WATER SERVICES METER REPAIRER I 584 WATER SERVICES METER REPAIRER II 604 WATER SERVICES QUALITY COORDINATOR 676 WATER SERVICES QUALITY INSPECTOR 636 WATER SERVICES QUALITY SUPERVISOR 656 WATER SERVICES SUPERVISOR 656 WATER SERVICES UTILITY INSPECTOR 636 WATER SERVICES WORKER I 559 WATER SERVICES WORKER II 579 WATER SYSTEMS OPERATOR I 587 WATER SYSTEMS OPERATOR II 607 WATER SYSTEMS OPERATOR 111 621 WEB SYSTEMS TECHNICIAN 576 WEBSITE ENTRY SPECIALIST 550 WORK CENTER COORDINATOR 721 94 25F-96 WORKFORCE SPECIALIST I 576 WORKFORCE SPECIALIST II 601 WORKFORCE SPECIALIST III 621 WORKFORCE SPECIALIST IV 676 YOUTH SERVICES TECHNICIAN 570 ZOO ANIMAL REGISTRAR 581 ZOO CURATOR 630 ZOO CURATOR OF EDUCATION 630 ZOO EDUCATION SPECIALIST 581 ZOO KEEPER AIDE 491 ZOO KEEPER I 551 ZOO KEEPER II 581 ZOO MAINTENANCE SUPERVISOR 630 (T) designates a "terminal" classification. A position classification that has been designated as "terminal" by formal City Council action will be deleted from the City's Basic Classification and Compensation Plan when vacated by its last remaining incumbent. No new appointments may be made to a classification that has been so assigned. 95 25F-97 Exhibit C RESOLUTION NO. 81-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA RELATING TO EMPLOYER-EMPLOYEE RELATIONS IN THE PUBLIC SERVICE OF THE CITY OF SANTA ANA WHEREAS, the Council of the City of Santa Ana declares that it is the public policy of the City to maintain and enhance its administration of employer-employee relations and to protect the public by assuring at all times the orderly and uninterrupted operations and services of City government; and WHEREAS, the City of Santa Ana desires to establish uniform and orderly methods of communication between the City and its employees, including provisions for (a) recognizing the rights of employees to join organizations of their own choosing for the purpose of representation on matters affecting employee relations or to represent themselves individually in dealing with the City; and (b) establishing equitable and uniform rules and procedures to provide for the orderly and systematic presentation, consideration and resolution of employer-employee relations matters; and WHEREAS, the City of Santa Ana has met and conferred in good faith with representatives of the Santa Ana City Employees' Association; Santa Ana Police Benevolent Association; Santa Ana Firemen's Benevolent Association; and the American Federation of State, County and Municipal Employees, AFL-CIO, which are the only employee organizations known to the City to have among their members employees of the City, concerning the rules and regulations for the administration of employer-employee relations set forth herein; and NOW, THEREFORE, the City Council of the City of Santa Ana does hereby resolve as follows: Section 1: Title of Resolution This Resolution shall be known as the "Employer-Employee Relations Resolution of the City of Santa Ana". Section 2: Definitions As used in this Resolution, the following terms shall have the meanings indicated: APPROPRIATE UNIT - means a unit of employee classifications or positions established pursuant to Section 11 of this Resolution. CITY - means the City of Santa Ana, a municipal corporation, and where appropriate herein, "City" refers to the City Council or any duly authorized management employee as herein defined. DAY - means calendar day unless expressly stated otherwise. EMPLOYEE - means any person regularly employed by the City on a full time basis except those persons elected by popular vote. EMPLOYEE, CONFIDENTIAL - means an employee who is assigned to perform work directly involved in the development, preparation or presentation of management positions with respect to employer-employee relations. EMPLOYEE, MANAGEMENT - means any employee having responsibility for formulating, administering or managing the implementation of City policies or programs, including but not limited to, department and assistant department heads, division heads, and professional administrative staff employees employed to render advice and 96 25F-98 assistance pertaining to the conduct of legal, fiscal, budgetary, personnel management and employer-employee relations affairs of the City. EMPLOYEE, PROFESSIONAL - means a classification of employees engaged in work (a) predominantly intellectual and varied in character as opposed to routine mental, manual, mechanical or physical work; (b) involving the constant exercise of discretion and judgment in its performance; and (c) requiring knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study in an institution of higher learning, as distinguished from a general academic education, or from an apprenticeship or from training in the performance of routine, mental, manual or physical processes. EMPLOYEE, SUPERVISORY - means any employee, regardless of job description or title, having authority, in the interest of the employer, to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward, or discipline other employees, or the responsibility to assign work to and direct them, or to evaluate or review their grievances, or effectively to recommend such actions, if in connection with any of the foregoing, the exercise of such responsibility is not of merely routine or clerical nature, but requires the use of independent judgment. EMPLOYEE ORGANIZATION - means any lawful organization which includes employees of the City and which has as one of its primary purposes representing such employees in their employment relations with the City; provided, however, that said organization has no restrictions on membership based on race, color, creed, sex or national origin. EMPLOYEE RELATIONS OFFICER - means the City's principal representative in all matters of employer- employee relations designated pursuant to Section 3 hereof, or his duly authorized representative. EMPLOYER-EMPLOYEE RELATIONS - means the relationship between the City and its employees and their employee organization, or when used in a general sense, the relationship between City management and individual employees or employee organizations. GRIEVANCE - means a dispute, claimed by an employee, group of employees or a recognized employee organization concerning the meaning, application, or enforcement of any of the provisions of the City's Employer- Employee Relations Policy or of a memorandum of understanding; and for which specific hearing or appeal procedure is not otherwise provided, or is not specifically withheld, by civil service rule, ordinance, resolution, charter provision, or memorandum of understanding. IMPASSE - means that the representatives of the City and a Recognized Employee Organization have reached a point in their meeting and conferring in good faith where their differences concerning matters on which they are required to meet and confer, remain so substantial that further meeting and conferring would not be likely to result in an agreement. MEDIATION OR CONCILIATION - means the efforts of an impartial third person or persons, functioning as intermediaries, to assist the parties in reaching a voluntary resolution to an impasse, through interpretation, suggestion and advice. Mediation and conciliation are interchangeable terms. MEET AND CONFER IN GOOD FAITH - (sometimes referred to herein as "meet and confer" or "meeting and conferring") - means the performance by duly authorized City representatives and duly authorized representatives of a recognized employee organization of their mutual obligation personally to meet and confer in good faith promptly upon the request of either party and continue for a reasonable period of time in order to exchange freely information, opinions and proposals, and to endeavor to reach agreement on matters within the scope of representation prior to the adoption by the City of its final budget for the ensuing year. This does not require either party to agree to a proposal or to make a concession. MEMORANDUM OF UNDERSTANDING - means a written memorandum of the agreement between the City and a recognized employee organization reached through meeting and conferring. 97 25F-99 PEACE OFFICER - means an employee of the Santa Ana Police Department whose principal duties consist of active law enforcement and who is designated as a "peace officer" as that term is defined in Section 830, California Penal Code, except that, for purposes of this Resolution only, "peace officer" does not mean a park patrolman, security guard or a member of the fire department, whether the latter be serving as a member of an arson investigating unit, as a deputy or assistant state fire marshal, or in any capacity wherein the member would have the status of peace officer for purposes other than that of this Resolution. RECOGNIZED EMPLOYEE ORGANIZATION - means an employee organization which has been granted formal recognition by the Employee Relations Officer as the employee organization which has the right to meet and confer in good faith as the majority representative of all members of an appropriate representation unit pursuant to Section 11 hereof, except those employees in such unit who have exercised their right not join an employee organization and who choose to represent themselves individually with the City, or has been designated through a secret ballot election as the exclusive representative of the employees in an appropriate representation unit pursuant to Section 11 of this Resolution. SCOPE OF REPRESENTATION - means those matters relating to employment conditions and employer-employee relations including, but not limited 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. Section 3: Designation of the City's Employee Relations Officer The City Council hereby designates the City Manager as the Employee Relations Officer who shall be the City's principal representative on all matters of employer-employee relations, with authority to meet and confer in good faith on matters within the scope of representation, and to administer all provisions of this Resolution and the employee relations rule and procedures adopted pursuant thereto. The Employee Relations Officer is authorized to delegate his duties and responsibilities. Section 4: Meet and Confer in Good Faith - Scope City representatives and representatives of formally recognized employee organizations having exclusive representation rights, have the mutual obligation personally to meet and confer in good faith in order to exchange freely information, opinions and proposals and to endeavor to reach agreement on matters within the scope of representation prior to the adoption by the City of its final budget for the ensuring year. The City shall not be required to meet and confer in good faith on a subject preempted by Federal or State law or by the City Charter. Section 5: Notice The City will give reasonable written notice to each recognized employee organization affected by any ordinance, rule, resolution, or regulation relating to matters within the scope of representation proposed to be adopted by the City, and each such organization shall be given the opportunity to meet and confer with the Employee Relations Officer prior to such adoption. In cases of emergency when the City determines that an ordinance, rule, resolution, or regulation relating to matters within the scope of representation must be adopted immediately without prior notice or meeting with recognized employee organization, the Employee Relations Officer shall provide such notice and opportunity to meet at the earliest practicable time following the adoption of such ordinance, rule, resolution or regulation. Section 6: Petition for Reco ng ition 98 25F-100 An employee organization that seeks to be formally acknowledged as the Recognized Employee Organization representing the employees in an appropriate unit shall file a petition with the Employee Relations Officer containing the following information and documentation: Name and address of the employee organization. Names and titles of its officers. Names and titles of employee organization representatives who are authorized to speak on behalf of the organization. A statement that the employee organization has, as one of its primary purposes, representing the employees in their employment relations with the City. A statement whether the employee organization is a chapter or local of, or affiliated directly or indirectly in any manner with, a regional or state, or national or international organization, and, if so, the name and address of each such regional, state or international organization. Certified copies of the employee organization's constitution and bylaws, including all amendments thereof. A designation of those persons, not exceeding three in number, and their addresses, to whom sent by first class or certified United States mail will be deemed sufficient notice on the employee organization. A statement that the employee organization is cognizant of the provisions of Section 3509 of the Meyer-Milias- Brown Act. A statement that the employee organization has no restriction on membership based on race, color, creed, sex, or national origin. A description of the composition of the unit or units claimed to be appropriate, including the job classifications of employees and the number of member employees therein, as well as a statement of reasons why the unit or units is or are considered to be appropriate. A statement that the employee organization has in its possession written proof, dated by the signer within six (6) months of the date upon which the petition is filed, to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the City. Such written proof shall be made in such language and form as the Employee Relations Officer shall prescribe and shall be submitted for confirmation to the Employee Relations Officer to a mutually agreed upon disinterested third party. Notwithstanding the above, the Employee Relations Officer, in his sole discretion, may accept employee dues deduction authorization, using the payroll register for the period immediately preceding the date of filing of a Petition of Recognition, as proof of employee support for the petitioning organization, except that dues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as proof of employee support for any employee organization, unless it can otherwise be shown that the dues deduction for the petitioning organization is the only one which provides full membership rights and privileges, including the right to vote. A request that the Employee Relations Officer recognize the petitioning employee organization as the Recognized Employee Organization representing the employees in the unit(s) claimed to be appropriate for the purpose of meeting and conferring in good faith on all matters within the scope of representation. The Petition, including all accompanying documents, shall be declared to be true, correct and complete, under penalty of perjury, by the duly authorized officer(s) of the employee organization executing it. The Employee Relations Officer may require additional information as required by this Resolution to be included in the Petition. 99 25F-101 The Employee Relations Officer shall give prompt written notice of the filing of a Petition to any recognized employee organization affected thereby. Section 7: City Response to Recognition Petition Upon receipt of the Petition, the Employee Relations Officer shall within ten (10) days determine whether: There has been compliance with the requirements of the Recognition Petition; and The proposed representation unit is an appropriate unit in accordance with Section 11 of this Resolution. If an affirmative determination is made by the Employee Relations Officer on the foregoing two matters, he shall within ten (10) days after making said determination, inform the petitioning employee organization, shall give written notice of such request for recognition to the employees in the unit and shall take no action on said request for thirty (30) days thereafter. If either of the foregoing matters are not affirmatively determined, the Employee Relations Officer shall meet and discuss the matter with such petitioning employee organization, and, if such determination thereafter remains unchanged, shall inform that organization of the reasons therefore in writing. The petitioning employee organization may appeal such determination in accordance with Section 13 of this Resolution. Section 8: Open Period for Filing Challenging Petition (s Within thirty (30) days of the date written notice was given to affected employees that a valid Recognition Petition(s) for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the recognized employee organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some but not all the classifications or positions set forth in the Recognition Petition being challenged), by filing a petition(s) evidencing proof of employee support in the unit claimed to be appropriate of at least thirty (30) percent and otherwise in the same form and manner as set forth in Section 6 of this Resolution. If such challenging petition(s) seeks establishment of an overlapping unit, the Employee Relations Officer shall call for a hearing on such overlapping petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. Thereafter, the Employee Relations Officer shall determine the appropriate unit or units in accordance with the standards in Section 11 of this Resolution. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination is communicated to them by the Employee Relations Officer to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 13 of this Resolution. Section 9: Election Procedure The Employee Relations Officer shall arrange for a secret ballot election to be conducted by a party agreed to by the Employee Relations Officer and the concerned employee organization(s) in accordance with its rules and procedures subject to the provisions of this Resolution. All employee organizations who have duly submitted petitions which have been determined to be in conformance with this Resolution shall be included on the ballot. The choice of "no organization" shall also be included on the ballot. Employees entitled to vote in such election shall be those persons employed full time in regular, permanent positions within the designated appropriate unit who were employed during the pay period immediately prior to the date which ended at least fifteen (15) days before the date the election commences, including those who did not work during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the City in the same unit on the date of election. An employee organization shall be formally acknowledged as the Recognized Employee Organization for the designated appropriate unit following an election or runoff election if it received a numerical majority of all valid votes cast in the election. If an election involving three or more choices, where none of the choices receives a majority of the valid votes cast, a runoff election shall be conducted between the two choices receiving the largest number of valid votes cast (that is, either between two employee organizations, or one employee organization and no representation); the rules governing an initial election being applicable to a runoff election, except that the runoff election shall be held within fifteen (15) days following the certification of the initial election results. 100 25F-102 There shall be no more than one valid election under this Resolution pursuant to any petition in a 12 month period affecting the same unit. In the event that the parties are unable to agree on a third party to conduct an election, the election shall be conducted by the California State Conciliation Service. Costs of conducting elections shall be borne in equal shares by the City and by each employee organization appearing on the ballot. In cases where a Memorandum of Understanding between the City and an employee organization is in effect on the effective date of this Resolution, it shall be presumed for the duration of the Memorandum of Understanding that the unit set forth in the Memorandum of Understanding is appropriate and that the employee organization is the majority representative of the employees covered therein. Unless a petition is filed pursuant to Section 12 below, it shall be presumed that when said Memorandum of Understanding terminates the employee organization shall continue to be a majority representative of employees covered by said Memorandum of Understanding for the purposes of meeting and conferring regarding matters within the scope of representation; provided, however, the employee organization files with the City the information required by Section 6(a), 1 through 13 of this Resolution. Nothing contained herein shall preclude an employee organization from filing a petition for recognition pursuant to Section 6 or Section 10 of this Resolution at the expiration of Memoranda of Understanding which expire on June 30, 1981. Section 10: Procedure for Decertification of Recognize d Employee Organization A Decertification Petition alleging that the incumbent Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit may be filed with the Employee Relations Officer only during the month of January of any year following the first full year of recognition or during the thirty (30) day period commencing one hundred eighty (180) days prior to the termination date of a Memorandum of Understanding then having been in effect less than three (3) years, whichever occurs later. A Decertification Petition may be filed by employees or their representative, or an employee organization, and shall contain the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct and complete: The name, address and telephone number of the petitioner and a designated representative authorized to receive notices of requests for further information. The name of the established appropriate unit and of the incumbent Recognized Employee Organization sought to be decertified as the representative of that unit. An allegation that the incumbent Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto. Proof of employee support that a majority of the employees in the established appropriate unit no longer desires to be represented by the incumbent Recognized Employee Organization. Such proof shall be submitted for confirmation to the Employee Relations Officer or to a mutually agreed upon disinterested third party. The Employee Relations Officer can only accept those petitions which 1) request decertification of the current formally recognized employee organization and 2) do not request to carve out another unit from the already established appropriate unit. An employee organization may file a Petition under this Section in the form of a Recognition Petition that conforms to the requirements of Section 6 of this Resolution in satisfaction of the Decertification Petition requirements hereunder. The Employee Relations Officer shall initially determine whether the Decertification Petition or Recognition Petition, if any, have been filed in compliance with the applicable provisions of this Resolution. If his determination is in the negative, he shall offer to consult thereof with the representative(s) of such petitioning employees or employee organization, and if such determination thereafter remains unchanged, shall return such Petition(s) to the employees or employee organization with a statement of the reasons therefore in writing. The petitioning employees or employee organization may appeal such determination in accordance with Section 13 of this Resolution. 101 25F-103 If the determination of the Employee Relations Officer is in the affirmative, or if his negative determination is reversed on appeal, he shall give written notice of such Decertification of Recognition Petition to the incumbent Recognized Employee Organization and to unit employees. The Employee Relations Officer shall thereupon arrange for a secret ballot election to be held on or about fifteen (15) days after such notice to determine the wishes of unit employees as to the question of decertification, and if an accompanying Recognition Petition was duly filed, and, in the event decertification of the incumbent Recognized Employee Organization is voted, the question of representation. Such election shall be conducted in conformance with Section 9 of this Resolution. The cost of any election proceeding under the provisions of this Section shall be borne entirely by the employee organization(s) challenging the incumbent recognized employee organization. An employee organization which displaces another employee organization as a formally recognized employee organization following an election conducted pursuant to this Section shall assume any existing Memorandum of Understanding then in effect as a condition of recognition and said Memorandum of Understanding shall remain in full force and effect for the balance of the term thereof. Section 11: Policy and Standards for Determination of Appropriate Units The basic policy objectives in determining the appropriateness of units shall be the effect of a proposed unit on 1) the efficient operations of the City and its compatibility with the primary responsibility of the City and its employees to effectively and economically serve the public and 2) providing employees with effective representation based on recognized community of interest considerations. These policy objectives require that the appropriate unit shall be the broadest feasible grouping of positions that share an identifiable community of interest. Factors to be considered shall be: Similarity of the general kinds of work performed, types of qualifications required, and the general working conditions. History of representation in the City and similar employment; except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized. The effect of the proposed unit on efficient operations of the City and the compatibility of the unit with the responsibility of the City and its employees to serve the public. The effect on the administration of employer-employee relations created by the fragmentation of classifications and proliferation of units. Effect on the classification structure and impact on the stability of the employee relationship of dividing a single or related classification among two or more units. Notwithstanding the foregoing, management employees shall only be included in a unit consisting solely of management employees and confidential employees shall be included in a unit consisting solely of confidential employees. When the City establishes new classifications or positions, or modifies the job content of an existing classification or position, the Employee Relations Officer shall, after notice to and consultation with all affected employee organizations, determine which, if any, representation unit shall include such new or modified classification(s) or position(s). Section 12: Procedure for Modification of Established Appropriate Units 102 25F-104 Requests by employee organizations for modifications of established appropriate units may be considered by the Employee Relations Officer only during the period specified in Section 10 of this Resolution. Such requests shall be submitted in the form of a Recognition Petition, and, in addition to the requirements set forth in Section 6 of this Resolution, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and standards set forth in Section 11 hereof. The Employee Relations Officer shall process such petitions as other Recognition petitions under this Resolution. The Employee Relations Officer may on his motion propose, during the period specified in Section 10 of this Resolution, that an established unit be modified. The Employee Relations Officer shall give written notice of the proposed modification(s) to any affected employee organization and shall hold a meeting concerning the proposed modification(s), at which time all affected employee organizations shall be heard. Thereafter the Employee Relations Officer shall determine the composition of the appropriate unit or units in accordance with Section 11 of this Resolution, and shall give written notice of such determination to the affected employee organizations. The Employee Relations Officer=s determination may be appealed as provided in Section 13 of this Resolution. If a unit is modified pursuant to the motion of the Employee Relations Officer hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Recognized Employee Organization for such new appropriate unit or units pursuant to Section 6 hereof. Section 13. Appeals An employee organization aggrieved by an appropriate unit determination of the Employee Relations Officer under this Resolution may, within ten (10) days of notice thereof, appeal such determination to the City Council for final decision. An employee organization aggrieved by a determination of the Employee Relations Officer that a Recognition Petition (Section 6); Challenging Petition (Section 8) or Decertification Petition (Section 10) or employees aggrieved by a determination of the Employee Relations Officer that a Decertification Petition (Section 10) has not been filed in compliance with the applicable provisions of this Resolution, may, within fifteen (15) days of notice of such determination, appeal the determination to the City Council for final decision. Appeal to the City Council shall be filed in writing with the City Clerk, and a copy thereof served on the Employee Relations Officer. The City Council shall commence to consider the matter within thirty (30) days of the filing of the appeal, and shall render a final and binding decision regarding the resolution of the disputed issue(s) raised by the appeal after each party involved has been given an opportunity, during a public meeting, to present written and oral arguments in support of their respective positions and, if the City Council so desires, after any future investigation or review of the matter as it may deem appropriate. The City Council, may, in its discretion, refer the dispute to a third party hearing process for the purpose of seeking an advisory determination prior to making its final decision regarding the resolution of the dispute. Section 14: Submission of Current Information by Recognize d Employee Organizations All changes in the information filed with the City by a Recognized Employee Organization under Items 1 through 13 of its Recognition Petition under Section 6 of this Resolution shall be submitted in writing to the Employee Relations Officer within fifteen (15) days of such change. Section 15: Payroll Deductions on Behalf of Employee Organizations Upon formal acknowledgment by the City of a Recognized Employee Organization under this Resolution, only such Recognized Employee Organization may be provided payroll deductions of membership dues and insurance premiums for plans sponsored by such organization upon the written authorization of employees in the unit represented by Recognized Employee Organization on forms provided therefore by the City. The providing of such service to the Recognized Employee Organization by the City shall be contingent upon and in accordance with the provisions of Memorandum of Understanding and/or applicable administrative procedures. 103 25F-105 Section 16: Employee Organization Activities - Use of City Resources Access to City work locations and the use of City paid time, facilities, equipment and other resources by employee organizations and those representing them shall be authorized only to the extent provided for in Memorandum of Understanding and/or administrative procedures; shall be limited to activities pertaining directly to the employer- employee relationship and not such internal employee organization business as soliciting membership, campaigning for office, and organization meetings and elections; and shall not interfere with the efficiency, safety and security of City operations. Section 17: Administrative Rules and Procedures The Employee Relations Officer is hereby authorized to establish such rules and procedures as appropriate to implement and administer the provisions of this Resolution after consultation with affected employee organizations. Section 18: Initiation of Impasse Procedures If the meet and confer process has reached impasse as defined in this Resolution, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all disputed issues. An impasse meeting shall then be scheduled promptly by the Employee Relations Officer. The purpose of such impasse meeting shall be: To identify and specify in writing the issue or issues that remain in dispute; To review the position of the parties in a final effort to resolve such disputed issue or issues; and If the dispute is not resolved, to discuss arrangement for the utilization of the impasse procedures provided herein. Section 19: Impasse Procedures Impasse procedures are as follows: If the parties so agree, the issue or issues at impasse shall be submitted directly to the City Council for determination. If they do not agree within seven (7) days following the conclusion of the impasse meeting set forth in Section 18 above, either party may submit the impasse to mediation. All mediation proceeding shall be private and the mediator shall make no public recommendation, nor take any public position at any time concerning the issues. If the parties are unable to agree on a mediator after a reasonable period of time, they shall select the mediator from a list of three names to be provided by the State Conciliation Service, or if that agency for any reason shall fail to provide such list, by the American Arbitration Association. Upon receipt of such list, the parties shall alternately strike names from the list until a single name remains who shall become the mediator. The priority of striking names shall alternate from one party to the other each time impasse procedures are invoked by the same parties. The employee organization or the City shall commence this process in an order determined by lot striking the first name from such list of names in any initial mediation. The cost of the mediator, if any, shall be shared equally by both parties. If the parties have failed to resolve all their disputes through mediation within fifteen (15) days after the mediator commenced meetings with the parties, the parties may agree to submit the issues in dispute directly to the City 104 25F-106 Council. In that event, the City Council shall finally determine the issues after conducting a public hearing thereon and after such further investigation of the relevant facts as it may deem appropriate. If the parties have exhausted the mediation process, the matter shall be submitted to the City Council for resolution. Section 20: Construction This Resolution shall be administered and construed as follows: Nothing in this Resolution shall be construed to deny to any person, employee, organization, the City, or any authorized officer, body or other representative of the City, the rights, powers and authority granted by Federal or State law or City Charter provisions. Nothing in this Resolution shall be construed as making the provisions of California Labor Code Section 923 applicable to City employees or employee organizations, or of giving employees or employee organizations the right to participate in, support, cooperate or encourage, directly or indirectly, any strike, sickout, other total or partial stoppage or slowdown of work or any other interference with the conduct of the City's operations. Nothing contained in this Resolution shall abrogate any written Memorandum of Understanding between any employee organization and the City in effect on the effective date of this Resolution. All such agreements shall continue in effect for the duration of the term specified therein unless modified or rescinded by mutual agreement of the parties thereto. Whenever written notice is required by this Resolution, such notice shall deem to have been received on the day immediately following the day on which it was mailed (excluding Saturdays, Sundays, and holidays on which the offices of the City are closed) provided the same was sent by first class or certified mail, postage prepaid to the City at 20 Civic Center Plaza, Santa Ana, California 92701, or to any employee organization at its last address furnished to the City. Section 21: Severability In any section, subsection, sentence, clause or phrase of this Resolution, or the application of such portion to any person or circumstance, shall be held invalid by a decision of any court of competent jurisdiction, the remainder of this Resolution, or the application of such portion to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any or more sections, subsections, sentences, clauses or phrases be declared invalid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana: that this Resolution shall be operative from and after May 18, 1981. ADOPTED this 181h day of May, 1981, by the following vote: AYES: Acosta, Bricken, Griset, Luxembourger, Markel, McGuigan, Serrat 105 25F-107 EXHIBIT "D" 9/80 HARDSHIP CLAIM Name- Division/Section- Position- Work Telephone Number: Supervisor Name and Telephone: Work Hours: Proposed Work Hours: HARDSHIP CLAIMED: OPTIONS EXPLORED BY EMPLOYEE TO RESOLVE PERSONAL HARDSHIP: EMPLOYEE'S PROPOSED SOLUTION: SUPERVISOR'S NEEDS AND CONCERNS: COMMITTEE'S RECOMMENDATION TO DEPARTMENT HEAD: 106 25F-108 REQUEST FOR COUNCIL ACTION 0 CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED 0 As Recommended AGREEMENT WITH THE FIRE O OrAmended MANAGEMENT ASSOCIATION O Ordinance on ~ Reading 0 Ordinance on 2"d Reading 0 Implementing Resolution 0 Set Public Hearing For 21 , CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Fire Management Association regarding wages and other terms and conditions of employment. DISCUSSION The City and the Fire Management Association (FMA) recently completed contract negotiations resulting in a four-year contract extension to the FY 2004-10 Memorandum of Understanding (MOU). The extension period covers July 1, 2010 through June 30, 2014_ The provisions of this extended agreement are as follows: 1) Salary: 7/01/10 - 6/30/11 = 0% 7/01/11 - 6/30/12 = 3% 7/01/12 - 6/30/13 = 3.5% 7/01/13 - 6/30/14 = 0% 2) Payment toward 3% at 50 Service Retirement Benefit: "Safety" employees shall begin contributing an additional amount toward the City's "employer" rate as follows: • January 1, 2012 = additional _50% for a total of 1.43% • January 1, 2013 = additional 1.0% for a total of 2.43% • January 1, 2014 = additional 1.0% for a total of 3.43% 3) Retirement Reopener: If the employer contribution rate for a fiscal year meets or exceeds 25%, then the provisions of Article 14.6."Payment of 3% @ 50 Service Retirement Benefit" shall be reopened at the request of the City. 25G-1 Agreement with the Fire Management Association September 20, 2010 Page 2 4) Pay for Performance: Eliminate 7.5% "pay-for-performance" for Deputy Chief and Administrative Chief/Fire Marshal starting in FY 2010-11. Add 2.5% to the salary schedule, respectively, for FY 2012-13 and FY 2013-14 for a total of 5%. FISCAL IMPACT There is a $102,400 savings to the City for deferral of salary increases and elimination of "pay- for-performance"- There are additional ongoing savings of $26,834 per year for increased PERS contributions and elimination of pay-for-performance. APPROVED AS TO FUNDS AND ACCOUNTS: Kathie S. Gonzalez Francisco Gutierrez Executive Director Executive Director Personnel Services Agency Finance & Management Services Agency 25G-2 T-W9FOUR--YEAR CONTRACT EXTENSION TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA and THE SANTA ANA FIRE MANAGEMENT ASSOCIATION FOR FISCAL YEARS 2010-11 AND 201 4 2 through 2013-14 The City of Santa Ana (CITY) and the Santa Ana Fire Management Association (SAFMA) have met and agreed to emend extend the 2004-10 Memorandum of Understanding (MOU) between the CITY and SAFMA, for two-(,2)four (4) additional years. The existing initial MOU provisions, and the provisions outlined in the two- year Contract Extension for Fiscal Years 2008-09 and 2009-10 shall remain unchanged and in effect unless addressed modified by this contract extension. The new expiration date of the MOU shall be June 30, 2012 14, and the MOU shall be amended as follows: AMENDED ARTICLE IV (new language in bold italics; deleted provisions lined out) 4.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all members of the Santa Ana Fire Management Association who are now employed or will in the future be employed in any of the designated classifications of employment listed in this Agreement and its attachments. This plan includes two groups of classification titles, Fire Management Group A (the sworn CalPERS "Safety" class of Deputy Fire Chief and the non-sworn CalPERS "Miscellaneous" class of Administrative Chief/Fire Marshal*), and Fire Management Group B (the sworn CalPERS "Safety" class of Fire Battalion Chief and the non-sworn CalPERS "Miscellaneous" class of Fire Communications Manager). * The current incumbent is designated as "safety" for retirement purposes. 4.2 Schedules of Salaries. A. Two separate schedules of salary rate ranges, one for classes of employment designated as represented Fire Management Group A (Deputy Fire Chief and Administrative Chief/Fire Marshal), and one for classes of employment designated as represented Fire Management Group B (Fire Battalion Chief and Fire Communications Manager) are attached hereto in matrix format and made a part hereof as though set forth in full herein. The schedules for represented FMA Contract Extension: 2010-2014 Page 1 25G-3 Fire Management Group A classes and represented Fire Management Group B classes are listed as follows: Category of Employment Salary Schedule No. Fire Management Group A FMA Group A-1 (classes allocated to 4-5 17 step FMA Group A-2 salary rate ranges) Fire Management Group B FMA Group B (classes allocated to 5-step salary rate ranges) B. , The basic salary schedules for "Fire Management Group A" (titled "FMA Group A-1 and A-2, respectively) ees contain numerous salary rate ranges, each range comprised of fifteen (15) seventeen (17) separate rates of pay shown in monthly amounts. The respective salary rate ranges are identified by a two-digit number preceded by the capital letters "FM" or "FMFM", respectively. The separate rates of pay or steps within each salary rate range are identified by the numbers "1" through 45" "17" inclusive, with Step "1" being the lowest or minimum of the range, Step "8" the middle or midpoint rate of the range, and Step 45" "17" being the highest or maximum rate. The purpose of each step and criteria for advancement are set forth in Subsection 4.7(A) below. C. The basic salary schedule for "Fire Management Group B" (titled "FMA Group B") contains numerous salary rate ranges, designated by the letter "M" and a three- digit rate range number. These rate ranges are comprised of five (5) steps or rates of pay shown in monthly amounts, identified by the letters "A" through "E" inclusive, with Step "A" being the lowest step in the range. The purpose of each step and criteria for advancement to the next higher step within a particular salary rate range are set forth in Salary Schedule No. FMA Group B (attached) and in Subsection 4.7(B) below. 4.3 Salary Adjustments. EffeetiYe July 1, 2009, the base salary ef empleyees eeYered by this Agreement o she!! be ine, eased by eight (8) salary rate ranges (appreximetely Effective July 1, 2009, there shall be no salary increase for employees covered by this Agreement. FMA Contract Extension: 2010-2014 Page 2 25G-4 Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute an additional 2.3% of their salary (for a total of 6.3%) toward the 2.7% at 55 retirement benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, this additional 2.3% contribution shall be implemented through payroll deduction on a pre-tax basis. EffeetiYe January 1, 2010, the base salary ef empleyees eeYered by this Agreement o shall be ine, eased by f We (5) salary rate ranges (appreximetely Effective January 1, 2010, there shall be no salary increase for employees covered by this Agreement. Effeetive July 1, 2010, the base salary of employees eevered by this Agreement shall be inereased by approximately 4%. Effective Aly 1, 2010, there shall be no salary increase for employees covered by this Agreement. Effeetive January 1, 2011, the base salary of employees eevered by this Agreement shall be inereased by approximately 2.6%. Effective Tanuary 1, 2011, there shall be no salary increase for employees covered by this Agreement. Effective July 1, 2011, there shall be me so! se for employees eevered by this Agreement. the base salary of employees covered by this Agreement shall be increased by six (6) salary rate ranges (approximately 3%). Effective January 1, 2012, there shall be no salary increase for employees covered by this Agreement. Effective Aly 1, 2012, the base salary of employees covered by this Agreement shall be increased by seven (7) salary rate ranges (approximately 3.5%). Effective Aly 1, 2013 through Tune 30, 2014, there shall be no salary increase for employees covered by this Agreement. Should any other bargaining unit receive a salary or benefit increase of greater value than the combined value of that set forth above (4% 3% and 2-.4%3.5flo, respeetivel during the term of this Agreement, the SAFMA shall be granted the value of that additional salary or benefit. equivalent value as w 4.5 Beginning Rates. FMA Contract Extension: 2010-2014 Page 3 25G-5 A. Fire Management Group A Classes. An employee appointed to a Fire Management Group A class (Deputy Fire Chief or Administrative Chief/Fire Marshal) shall be compensated at any rate within the lower third of the X17--step salary rate range ("Steps "1" through 5" 16') for their job classification as authorized by the Fire Chief. When economic conditions, unusual employment conditions, or exceptional qualifications of a candidate for employment indicate a higher rate would be in the City's best interest, the City Manager may authorize hiring at a higher rate in the salary rate range, Feint up to and including Step 15. 4.7 Advancement Within Ranges. A. hereby established a perfermenee based eyelustien system fer empleye'e-6 empleyed in Fire Management Greup A elesses eeyered by this Agreement (Deputy Fire Chief and Fire Marshal), the preyisiens ef whieh are set ferth herein bole te help attreet, retain and metiyete highly eempetent managers an a. Subjeet te the appreyel ef the City Manager, the Fire Chief is hereby eutherized salary rate ranges, as geyerned by the P-1-1-116 ef b. The City Manager shall establish perfermenee eriteris and appr guidelines te be utilized by the Fire Chief in setting indiyi e. After the salary ef an emp! ited te a Fire Management Greup-A eless has been first este li- plan, salary adyaneement threugh the remaining steps ef the fifteen (15) step selerNA rate range shall be based en the results ef an annual perferme eyeluet* FMA Contract Extension: 2010-2014 Page 4 25G-6 3. the fellew* ants: / Fire Management Greup A eless. A relatiye weight will be assigned te ebjeetiye listed with a minimum weight ef ten pereent 0 0 preblem / judgment, deeisien making and planning and ergenize4e-n-, management / leadership, management, teehnies! / stress, handling ef ete. her suberdinete Fire Management Greup A empleyees te determine their / any, immediately fell i ~h indiyidual Fire Management Greup -A peried preeeding that date. Additienally, at least ene (1) infermal mid- year pr -0 . ew sheM be held between the Fire Chief and eseh ef*~s and expeetatiens by a wide FMA Contract Extension: 2010-2014 Page 5 25G-7 and e ""I" "",/"""I Meets Expe-c-tatiens: Meets ebjeetiyes and requirements. Fails te meet seme ebjeetiyes and requirements. 5. Per~R Ese t Fire Management Greup A payment based en a pereentage ef eurrent annual rate ef base salary, e g either step inereases er ene time menetery payment er a eembinatien-4 in 1 V 1 V pereent (2.5%) ef eurrent annual rate ef base salary er adyaneement-4 ene step (2.5%) within the salary rate range, FMA Contract Extension: 2010-2014 Page 6 25G-8 being paid at a step higher then th rate ef the salary the Fire Chief and the appreyel ef the City Manage+- range, then the entire perfe . iresse must be awarded the ii. Any ene time menetery ineentiYe payment granted under this plan is net an ineresse in base salary and ne salary rate range appliesbie te any Fire Management Greup A empieyee eeyered by this Agreement she!! Manager. W. The City Manager she!! be respensible fer the deyelepment and she!! define hew perf ermenee ebjeetiYes, measures and standards are hew perfermenee eempenent ratings and eempesite ratings will be- A. fire Management Group A Classes: The following provisions shall govern salary advancement within rate ranges for employees employed in fire Management Group A classes (Deputy fire Chief and Administrative Chief/fire Marshal): FMA Contract Extension: 2010-2014 Page 7 25G-9 1) for any employee in a fire Management Group A classification covered by this Agreement who has been initially appointed to a step lower than Step 717' advancement to the next higher step in the FMA Group A-1 and A-2 schedules of salary rate ranges may be granted only for continued satisfactory and efficient service by said employee in the effective performance of the duties of his or her position. Such advancement shall be in two-step increments, each step being equivalent to approximately 2.5% for a total annual increase of approximately 5% per year. For example, an employee covered by this Agreement shall advance from Step 1 to Step 3, Step 3 to Step 5, Step 5 to Step 7, Step 7 to Step 9, Step 9 to Step 11, Step 11 to Step 13, Step 13 to Step 15, or Step 15 to Step 17 (the top step in the salary rate range), respectively. This two-step advancement shall be granted for continued satisfactory and efficient service by said employee in the effective performance of the duties of his or her position. The effective date of such step increase, if granted, shall be the first (1St) day of the month following the completion of one (1) year of service at the step from which said employee is being advanced. 2) During the term of this Agreement, a Fire Management Group A employee who has not yet reached Step 15 of the FMA Group A-1 or A-2 schedules of salary rate ranges shall continue to progress through the salary rate range at the rate of two (2) steps per year (approximately 5%), until Step 17 is achieved. 3) for the period of fiscal Years 2010-11 and 2011-12, no fire Management Group A employee shall advance further than Step 15 of the salary rate range. 4) Effective in Aly 1, 2012, each fire Management Group A employee who has already reached Step 15 shall receive a one (1) step salary increase (approximately 2.5%). Said employee shall then be at Step 16 of his or her salary rate range. 5) Effective Aly 1, 2013, each fire Management Group A employee who has already reached Step 16 shall receive a one (1) step salary increase (approximately 2.5%). Said employee shall then be at Step 17 of his or her salary rate range. FMA Contract Extension: 2010-2014 Page 8 25G-10 Such merit advancement shall require the following: a) There shall be on file in the office of the Executive Director of Personnel Services a copy of each periodic performance appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. b) The Fire Chief, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit step increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the fire Chief as to such recommendations and shall be informed of the reasons. c) No advancement in salary shall become effective until approved by the City Manager, except when placement on a salary step above Step "I" results from promotion under the provisions of Section 4.8 of this Article. d) Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step advance shall be retroactive to the first (1St) day of the month following the completion of the required length of service. 6) When an employee in a fire Management Group A classification has not been approved for advancement to the next higher salary step, he or she may be reconsidered for such advancement after the completion of three (3) months of additional continued service in the classification and, if necessary, shall be reconsidered for advancement to the next higher step above his or her then current step after the completion of six (6) months of additional continued service in the classification. 7) An employee in a fire Management Group A classification who is being paid at any salary step above Step "I" may be reduced to the next FMA Contract Extension: 2010-2014 Page 9 25G-11 lower step in the appropriate salary rate range upon the recommendation of the fire Chief and the approval of the City Manager. Procedure for such reduction shall follow the same procedure for merit advancement in Subsection 4.7 Paragraph (A) (1) above, and such officer or employee may be considered for readvancetnent under the same provisions as contained in Subsection 4.7, Paragraph (A) (7) above. B. Fire Management Group B Classes: The following requistien-s provisions shall govern salary advancement within rate ranges for employees employed in Fire Management Group B classes (Fire Battalion Chief and Fire Communications Manager): 1. For any employee in a Fire Management Group B classification covered by this Agreement who has been initially appointed to a step lower than Step "E," advancement to the next higher step (Step "B" from Step "A" or Step "C" from Step "B," etc.) may be granted only for continued satisfactory and efficient service by said employee in the effective performance of the duties of his or her position. The effective date of such step increase, if granted, shall be the first day of the month following the completion of one year of service at the step from which said employee is being advanced. Such merit advancement shall require the following: a) There shall be on file in the Office of the Executive Director of Personnel Services a copy of each periodic performance repert appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to his or her last salary advancement. b) The Fire Chief, at least twenty (20) calendar days prior to the anticipated completion of such employee's required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Fire Chief as to such recommendations and shall be informed of the reasons. FMA Contract Extension: 2010-2014 Page 10 25G-12 c) No advancement in salary abeye Step " shall become effective until approved by the City Manager, except when placement on a salary step above Step "A" results from promotion under the provisions of Section 4.8 of this Agreement. d) Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step advance shall be retroactive to the first (1St) day of the month following the completion of the required length of service. 2. When any employee in a Fire Management Group B classification has not been approved for advancement to the next higher salary step, he or she may be reconsidered for such advancement after the completion of three (3) months of additional continued service in the classification and, if necessary, shall be reconsidered for advancement to the next higher step above his or her then current step after the completion of six (6) months of additional continued service in the classification. 3. AAy An employee in a Fire Management Group B classification who is being paid at any salary step above Step "A" may be reduced to the next lower step in the appropriate salary rate range upon the recommendation of the Fire Chief and the approval of the City Manager. Procedure for such reduction shall follow the same procedure for merit advancement in Subsection 4.7 Paragraph (13)(1) above, and such officer or employee may be considered for readvancement under the same provisions as contained in Subsection 4.7, Paragraph (13)(2) above. AMENDED ARTICLE VIII (new language in bold; deleted provisions lined out) 8.2 Shift Replacement Pay/Special Assignment Pay for Fire Battalion Chiefs. D. Effective July 1, 2009, each Fire Battalion Chief assigned to Suppression agrees to place one (1) extra twenty-four (24) hour shift worked into a leave time bank. The employee shall not take off this twenty-four (24) hour shift during Fiscal Year 2009-10. Effective July 1, 2010, the twenty-four (24) hour shift may be taken off. AMENDED ARTICLE IX (new language in bold; deleted provisions lined out) FMA Contract Extension: 2010-2014 Page 11 25G-13 9.3 Cash Option. Employees covered by this Agreement will be given an option once per calendar year to receive cash compensation computed on a straight time basis in lieu of all or part of their holiday leave benefits set forth in Section 9.2 above. Such cash option may be eliminated or modified at the discretion of the Fire Department to the extent necessary to service the best interests of the department, to the extent it represents additional costs to the City, or to the extent it is construed as overtime under Department of Labor Guidelines implementing provisions of the Fair Labor Standards Act. Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Year 2009-10 the employee's ability to cash out holiday leave time. The ability to cash out holiday leave time shall be re-instated July 1, 2010. Such deferral shall not affect an employee's ability to be compensated for the accumulated holiday leave time upon separation from employment with the City, not to exceed a maximum of 288 hours for employees assigned to the twenty-four (24) hour work shift schedule, or 192 hours for employees assigned to a forty (40) hour work week schedule. Effective July 1, 2010, employees choosing to cash out their holiday time may do so to a maximum value of 1.33 x 96 hours, or 128 hours for employees assigned to a forty (40) hour work week schedule, or 1.33 x 144 hours, or 192 hours for employees assigned to a twenty-four (24) hour work shift schedule. AMENDED ARTICLE X (new language in bold; deleted provisions lined out) 10.2 Regular Vacation Period. C. Computing Regular Vacation. 2. No employee may carry over from one calendar year to the next, more than the equivalent of twe- (2) three (3) regular vacation periods from the previous two (2) years. feted- A regular vacation period is defined as the maximum amount of vacation earned in a calendar year as provided in Subsection A above. 10.4 Limitation on Vacation. With the exception of a retiring employee, no employee is granted, and no employee shall be allowed to take, any vacation leave with pay in excess of fifty (50) working days in any one year by combination of the vacations granted in this Agreement. Further, no employee may carry over from calendar year to the next more than the equivalent of twe-(2) three (3) longevity vacation periods and the equivalent of twe-(2) three (3) regular vacation periods from the previous two (2) years. and yeestien net taken beyend that siffieunt is . FMA Contract Extension: 2010-2014 Page 12 25G-14 Theref ere, the maximum yeestien that an eight (8) heur empleyee with less the (6) ye-1 - Geuld seeumulate is thirty (3) werking days (240 heurs) and enly-en eight (8) heur empleyee with mere then twenty (20) years --Uld Garry e and take the eutherized maximum ef f if ty (5) werking days (400 heurs) in any ene yeef" 10.6 Vacation Pay Options. Once each fiseel calendar year, all employees covered by this Agreement shall be given the option to receive cash compensation, computed on a straight-time basis, in lieu of up to five (5) working days of earned, unused vacation leave benefits set forth in this Article. Effective January 1, 2009, employees covered by this Agreement may cash out up to a total of 10 working days of earned, unused vacation leave benefits (including management vacation leave) set forth in this Article. Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Year 2009-10 an employee's ability to cash out vacation leave time. The ability to cash out vacation leave time shall be re- instated July 1, 2010. Such deferral shall not affect an employee's ability to be compensated for the accumulated vacation leave time upon separation from employment with the City. Effective July 1, 2010, employees choosing to cash out their vacation leave time may do so to a maximum value of 1.33 x 120 hours, or 160 hours per year for employees assigned to the twenty-four (24) hour work shift schedule, or 1.33 x 80 hours, or 106 hours for employees assigned to a forty (40) hour work week schedule. This cap on annual cash out of regular vacation shall not affect an employee's ability to be compensated for accumulated regular vacation leave time upon separation from employment with the City. 10.7 Management Vacation Benefit. Employees covered by this Agreement will be granted an additional five (5) working days [five (5), eight (8)-hour days for forty (40) hour employees and five (5), twelve (12) hour days for shift employees] per calendar year over the regular and longevity vacation schedule applicable to represented non-management employees of the City subject to a maximum accrual of twenty f We (25) thirty (30) days of such additional five (5) days per year. AMENDED ARTICLE XIV (new language in bold italics; deleted provisions lined out) 14.6 Payment of 3% at 50 Service Retirement Benefit. The City has reeeiyed an setuarial Yelustien dated Mereh 3, 2000 f rem CeIPERS inferming the parties that a eest analysis te amend the City's eentreet te preyide this benefit te eurrent o FMA Contract Extension: 2010-2014 Page 13 25G-15 psyrell fer this unit. in erder te preyide this benefit te its eurrent "safety!! T #The City and the Association agree that eligible employees w44 shall pay .93% of the Citys employer contribution to CaIPERS. Additionally, -Dduring the term of this Agreement, the City and Association agree to the following: Effective Tanuary 1, 2012, the employee contribution shall be increased by .50% for a total contribution of 1.43%. Effective Tanuary 1, 2013, the employee contribution shall be increased by 1.0% for a total contribution of 2.43%. Effective Tanuary 1, 2014, the employee contribution shall be increased by 1.0% for a total contribution of 3.43%. Effective Aly 1, 2014, employees covered by this Agreement shall not contribute more toward the 3% at 50 retirement benefit than members of the firemen's Benevolent Association (FBA). 14.7 Yearly Actuarial Valuation Fluctuations. CalPERS provides the City with a yearly actuarial valuation informing it of its new employer contribution rate to be in effect July 1St of each year. The City and Association agree that the City's employer contribution rate will fluctuate from year to year based on the investment returns earned by the retirement system. The City agrees that current eligible "safety" employees paying to receive this benefit should also benefit from this yearly fluctuation in the City's annual actuarial valuation. As sueh, eurrent eligible " ° ° Agreement. during the term ef this Should the Citys employer contribution rate meet or exceed 25% during the term of this Agreement, the City and Association agree to a reopener of this section, but there shall be no changes without the mutual written agreement of the parties. AMENDED ARTICLE XXVI (new language in bold italics; deleted provisions lined out) 26.1 The term of this Agreement shall be from July 1, 2004 through June 30, 24919 2012 2014. ARTICLE XXVII 27.0 RATIFICATION AND EXECUTION 27.1 The City and Association have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint FMA Contract Extension: 2010-2014 Page 14 25G-16 recommendations. The City and the Association acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of the Association and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Agreement is hereby executed by the authorized representatives of the City and Association and entered into this e 20th dory of June 7009 September 2010. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: MAYOR Dated: By: CITY MANAGER Dated: By: EXECUTIVE DIRECTOR PERSONNEL SERVICES ATTEST: APPROVED AS TO FORM: CLERK OF THE COUNCIL CITY ATTORNEY This Agreement has been ratified by the membership of the Santa Ana Fire Management Association. Dated: SANTA ANA FIRE MANAGEMENT ASSOCIATION By: RANDY BLACK, PRESIDENT FMA Contract Extension: 2010-2014 Page 15 25G-17 25G-18 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED ? As Recommended ORDINANCE AMENDMENT 2010 TO AMEND ? As Amended CHAPTER 11 OF THE DANCE ORDINANCE AND El Ordinance on 1s` Reading ? Ordinance on 2nd Reading ESTABLISHING A FEE FOR COST OF ? Implementing Resolution EXTRAORDINARY POLICE DEPARTMENT ? Set Public Hearing For SERVICES CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt an ordinance amending Chapter 11 of the Santa Ana Municipal Code related to dance permits and implementing the cost recovery fee for extraordinary policy services. DISCUSSION The Police Department, in conjunction with Downtown property owners and businesses, embarked on a review of the City's public dance regulations in an effort to attract new businesses, visitors and residents to the Downtown. The result is the provision of a new dance permit that addresses the unique nature of many of the older, historic properties in the Downtown and which allows for public dancing as an ancillary use. The boundaries pertaining to this modification are the same as those in the new Transit Zoning Code designated as Downtown (DT) Zone and Urban Center (UC) Zone (Exhibit 1). In addition to the Downtown modifications, the proposed Ordinance Amendment codifies existing operational standards and deleted outdated requirements pertaining to all dance permits citywide. Further, the Ordinance enacts a new fee for police services associated with dance permits. The amount of the fee was established with the adoption of the 2010-11 budget, subject to adoption of the proposed Ordinance Amendment. Dance permit data collected over time has revealed that police calls for service for establishments with dance permits can be much higher when compared to other establishments (see Exhibit 2). To assist the City in recapturing these costs, a $500 bi-annual cost recovery fee is proposed. The fee is based on the average number of hours required to police dance establishments. Further, the permit licensee will be billed for additional costs if there is a 50% increase in police related calls to the establishment. A formal review of the permit will also be triggered, and the Chief of Police may further condition the permit, suspend or revoke the permit. 5OA-1 Dance Ordinance Amendment and Fee September 20, 2010 Page 2 FISCAL IMPACT The cost recovery base fee ($6,000 based on the current number of dance permits issued) and any subsequent recapture fees will be deposited into the General Fund (01114002-50045). Dance Ordinance Amendment 2010 proposes modifications to public dance permit requirements that may encourage additional locations to obtain a permit, which may increase those amounts. APPROVED AS TO FUNDS AND ACCOUNTS: Paul M. Walter Francisco Gutierrez of Police Executive Director Police Department Finance & Management Services Agency PMW/CJN//mlr Exhibits: 1. DT Zone and UC Zone Map 2. Dance Establishment Cost Recovery Fee Memo 5OA-2 DRAFT (RH/JF 08/31/10) ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CHAPTER 11 OF THE SANTA ANA MUNICIPAL CODE RELATED TO DANCE PERMITS AND IMPLEMENTING THE SANTA ANA POLICE DEPARTMENT PUBLIC DANCING ESTABLISHMENT COST RECOVERY FEE FOR EXTRAORDINARY POLICE SERVICES THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Police Department is currently updating the public dance regulations. The Department recognizes the unique entertainment venues within the City serve to provide a rich and diverse cultural experience for individuals and visitors to the City. B. The proposed revisions will add operational standards such as minimum lighting and security guards while deleting outdated requirements, such as patron registration. Also proposed is a pilot program to allow establishments that cannot meet the current location standards to obtain a permit. The municipal code currently requires public dance places to have a minimum size kitchen facility and dance floor area, a minimum number of seating locations and must meet the State definition of a "bona fide eating establishment". It appears a majority of older, historical buildings that comprise the downtown area are unable to meet those minimum standards. Therefore, in order to enhance the urban, pedestrian flavor of the downtown and contribute to the economic well-being of the community, the police department proposes easing the location standards to accommodate those businesses that seek public dancing as an ancillary use. Initially, this permit will be available to establishments within a designated area of the downtown. C. The emergence of the Artists Village, downtown and surrounding area with a mix of residential, office and commercial uses, places the city at a point necessitating a fresh look at the citywide policy concerning public dancing. Within the Artists Village and surrounding area, several commercial and residential developments exist or are in the process of completion. Current eateries that have been established include the Gypsy Den, 5OA-3 Crosby, Proof, Memphis, Lola Gaspar, the planned Yost Complex and entertainment within the Empire Building and the Grand Central Arts Theater. D. Each of these developments, when approved, add a component necessary to create a more dynamic living community operating within an urban environment. The integration of living, working and entertainment space provides a lifestyle that has proven successful in other metropolitan areas and contributes to the vitality of the Downtown by enhancing the activity, and thus viability of the Artists Village. E. With reduced revenues and the increased growth of nightlife in the downtown area, the Police Department is seeking to support the emerging vibrant uses by developing a strong ordinance to mitigate any negative impacts associated with these venues and minimize calls for service while ensuring a reduced fiscal impact on the City. F. The City of Santa Ana has a long history with alcohol beverage establishments that generate an extraordinary amount of police- related calls for service. Numerous studies have shown the correlation between alcohol and violence. The police department has evaluated the relationship between alcohol-licensed establishments and the impact that entertainment such as public dancing has on police services. These studies found that police- related incidents at dance establishments generate a higher number of calls than non-dance establishments and those calls require an increased level of manpower. G. Police department data convincingly supports the premise that the City's dance establishments generate an extraordinary amount of police-related calls and require a greater number of police service hours than establishments that do not provide that type of entertainment. H. To help the City recapture some of those extraordinary costs, the Police Department proposes to assess a `cost recovery fee'. Establishments that obtain a public dance permit will be assessed this fee in addition to the application fee. Both fees will be collected each time the establishment applies to renew their dance permit. The goal of this fee is to maintain a strong sense of public safety without creating a burden to the City. 1. It is within the power of the City to protect itself from extraordinary emergency expenses by passing statutes and regulations that permit recovery from responsible parties. The City of Santa Ana may charge a fee to recover the reasonable costs incurred by the Ordinance No. NS-XXX 50A-4 Page 2 of _ City for services that the Santa Ana Police Department provides related to responding and attending to normal calls for service. J. Implementing a Public Dancing Establishment Cost Recovery Fee program will generate projected revenues that will help the City offset some of the costs incurred in responding to extraordinary calls for service at public dance establishments. K. The staff reports and oral testimony before the Public Safety Committee on May 25, 2010, and July 27, 2010, shall by this reference be incorporated herein and together with this ordinance, any amendments or supplements and the oral testimony before the City Council, shall constitute necessary findings for this ordinance. L. The Request for Council Action for this ordinance dated September 7, 2010, shall by this reference be incorporated herein, and together with this ordinance, any amendments or supplements and the oral testimony before the City Council at this meeting, shall additionally constitute the necessary findings for this ordinance. M. In an effort to monitor the results of this program, the City Council shall review these new revisions six (6) months after adoption of the ordinance in order to analyze the effectiveness and sufficiency of the new policies. N. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the City Charter. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 2. Section 11-1 of Chapter 11 of the Santa Ana Municipal Code is amended to read in full as follows: Sec. 11-1. Definitions. For the purpose of this chapter the words and phrases herein defined shall be construed as having the following meanings: Public dance hall is a place open to the public upon the payment of an admittance fee wherein music is provided and people are allowed to dance, which place is so open at regular intervals or on regular days of the week. This use shall also be defined as a regulated use under Chapter 41 of the zoning code Ordinance No. NS-XXX 5OA-5 Page 3 of _ Public dance is a dance open to the publiG f9F an adFni#aAGe fee OF Ghafge and whiGh is held on one day only in which either couples or singles engage in the activity of dancing in a public place. Public dancing place is a place operated for profit where music is provided and the public is permitted to dance with or without payment of a fee. Private dance is a dance which is limited to those persons individually invited, to which no admission charge is made, or a dance conducted by a bona fide club, society or association, or organization incorporated for benevolent, charitable, dramatic, literary, recreational or dancing purposes having an established membership, and which holds meetings other than such dances at regular stated intervals, and when the proceeds, if any, of such dance are used only for the purposes of such club, society, association or organization. Nightclub shall mean peFmitted and daRGinq is allowed a public place open to patrons over the age of twenty-one (21) years for entertainment primarily during the evening hours wherein liquor and food may be served providing music and an area for public dancing. Such an establishment is defined as a public premise by the California Business & Professions Code. Said establishment sells liquor or beer for consumption on the premises as its primary business. Special Event Dance shall mean a dance which is open to the public with or without payment of an admittance fee or charge which is held on one day only, for which a temporary "one-day dance permit" shall issue. Location of event must have received prior approval from the City's Planning & Building Agency and Fire Department to conduct these functions. Section 3. Section 11-3 of Chapter 11 of the Santa Ana Municipal Code is amended to read in full as follows: Sec. 11-3. Permit--Required; application; investigation; exception. (a) Every person desiring to conduct a public dance shall, ten (10) days prior to such dance, file an application for a permit so to do with the chief of police of the city. Every person desiring to operate a public dance hall or public dancing place shall file an application for a permit to do so with the chief of police at least thirty (30) days prior thereto. OffiGeFs of the erganization pmpesing to c;endUGt the same, the date OF , pla5e, and and the when }he nrnn ed to end ,rrcrvvn -1~9k:FFS~rrc-~urrc-ra~vp9$c---(•3e-6vted-t, and the admission fee to be Gharged. Ordinance No. NS-XXX 50A-6 Page 4 of _ (b) Written application for permits under this chapter shall be filed with the Chief of Police upon forms provided by him and shall set for the following facts: (1) The name and residence of the applicant or applicants, and if the applicant is a corporation or partnership, the names and residences of the officers, partners or directors thereof, and if the applicant is an association, the names and residences of the officers thereof; (2) The particular place for which the permit is desired; (3) The days, or if a one-day permit the date, and time of dances to be held under the permit; (4) A statement that the applicant is the licensee of record, sole party, or applicants are the sole party, either directly or indirectly interested in the dance for which a permit is sought, and that no other person is, or will be, in any manner interested, directly or indirectly, during the continuance of the permit; (5) A statement of the ownership of the realty of the premises for which the permit is sought; (6) The name of at least one responsible party on the premises, as well as a telephone number on the premises where such a person can be reached; (7) A statement of such additional information as the Chief of Police may require. (b)Lcl The chief of police shall investigate the persons applying for such permit, shall consider the items and standards for granting set out in section 11-5 and, in conformance therewith, shall either grant or deny the permit applied for, and shall forthwith notify the applicant of his action. (s)ue No person, firm, partnership, corporation, company, or non- profit or charitable organization shall conduct any public dance hall, public dance, or public dancing place, without first making application for and obtaining a permit so to do, nor shall any person conduct the same during the time while a permit so to do is revoked. (dUe No permit shall be required for a private dance. (f) Unless earlier revoked by the Chief of Police dance permits shall be valid for a period not to exceed two (2) years All dance permits are not automatically renewed and it shall be the responsibility of the permit holder to file a Ordinance No. NS-XXX 50A-7 Page 5 of _ new application for a dance permit at least 45 days prior to the previous permit's expiration. (g) Special Event Dance Permits or one-day dance permits shall be valid only for the requested date and are not renewable WLhj Any permit applicant aggrieved by the decision of the chief of police to deny said permit may appeal e-sityseeflsil as provided in Chapter 3 of the Santa Ana Municipal Code, except that the written notice of appeal must be filed with the clerk of the council and the chief of police within seventy-two (72) hours of service of the written notice of the chief of police's decision. Section 4. Section 11-4 of Chapter 11 of the Santa Ana Municipal Code is amended to read in full as follows: Sec. 11-4. Same--Revocation of or placing condition on. In the event any person holding a permit under this chapter shall violate any provision of this chapter or shall permit or allow any illegal, improper or disorderly conduct in said dancing place, the chief of police may revoke or condition such permit by giving written notice of the revocation or condition to the holder of such permit seventy-two (72) hours before the effective hour of the revocation or condition. The chief of police may, when violations of law in the neighborhood exceed the average for like areas in the city, give notice of revocation or placing a condition thereon in the original granting of the permit or to avoid revocation of an existing permit. The condition may require the management to employ one or more special officer , to be appFoyed by the Ghief of , to keep the peace and enforce all statutes and ordinances during all times dancing is allowed. Any permit holder aggrieved by the decision of the chief of police to revoke or condition said permit may appeal to the -city GeuRsiI as provided in Chapter 3 of the Santa Ana Municipal Code, except that the written notice of appeal must be filed with the clerk of the council and the chief of police within seventy-two (72) hours of service of the written notice of the chief of police's decision. Section 5. Section 11-5 of Chapter 11 of the Santa Ana Municipal Code is amended to read in full as follows: Sec. 11-5. Same--Location standards. (a) No permit shall be issued for a public dancing place where any alcoholic beverages are sold unless the place is a "bona fide eating place" as defined in Section 23038 of the Business and Professions Code of the State of California, and the place of business has seats at tables to seat at least fifty (50) Ordinance No. NS-XXX 5OA-8 Page 6 of _ people, not counting any stools at the bar or counter where alcoholic beverages are prepared for service and are served, utilizes not less than twenty (20) per cent of the floor space as a kitchen facility for food preparation, and has not less than three hundred (300) square feet of floor space maintained in a smooth and safe condition for dancing. (b) No permit shall be issued for a public dance hall where any alcoholic beverages are sold, unless the place has not less than five hundred (500) square feet of floor space maintained in a smooth and safe condition for dancing. (c) Notwithstanding the foregoing in that area of the City of Santa Ana known as the Downtown (DT) Zone and the Urban Center (UC) Zone as described in the Transit Zoning Code the requirements of subsections (a) and (b) shall not apply. In addition if the proposed floor space to be maintained in a smooth and safe condition for dancing is ten percent (10%) or more of the total square footage of the public area a formal plan check review by the Building Department and Fire Department shall be required Section 6. Section 11-7 of Chapter 11 of the Santa Ana Municipal Code is amended to read in full as follows: Sec. 11-7. Operational standards. danGing e-shall All establishments at which public dancing is being conducted shall comply with the following operational standards: (1) No establishment shall Rpermit or allow any intoxicated, boisterous or disorderly person to enter, be, or remain therein. who has left the building te FetUFn without the payment of the regulaF admi i admission. (3)fQ No establishment shall Sshut or turn off or reduce the intensity of the lighting in the area used for dancing to such an extent as to provide less lighting or illumination than is customary for rooms or areas of like dimensions or to a degree to make it difficult or impossible to clearly see or identify individuals dancing on the floor provided for dancing. Interior lighting must be in accordance with Article 220 of the National Electric Code and in addition a minimum of one- quarter foot-candle shall be provided in all areas of the establishment F4Q No establishment shall Rpermit or allow any minor under the age of 6*)d°°^ (16) eighteen (18) years to enter, remain in or dance in such place conducted unless accompanied by a parent or adult guardian or person in charge of said minor. Ordinance No. NS-XXX Page 7 of _ 5OA-9 (4) You are not allowed to charge any type of admission fee, cover charge or "donation" to a person for the purpose of allowing that person to enter the premises where dancing and/or entertainment is being conducted Any type of an entertainment use such as charging an admission to enter the premises to dance will require an approved Conditional Use Permit ("CUP") from the City's Planning and Building Agency. (5) No music shall be played outside of the premises nor be audible beyond the area under your control as the permittee unless the permittee has previously obtained any and all required permits for such activity. (6) The premises shall provide exterior lighting in compliance with Police Department requirements (7) At all times that dancing and/or entertainment is being conducted, the applicant shall employ a minimum of one (1) uniformed licensed security guard for every 100 persons in attendance per event for keeping the peace. (8) If there is a marked or noticeable increase in the number of police-related incidents on or near the premises as such increase may be determined by the Chief of Police the permittee shall increase the number of uniformed licensed security guards to a total number of guards as determined b the Chief of Police. (9) As the permittee, only you and no other person persons or business entity is authorized to conduct public dancing on the premises (10) You must post this permit at a conspicuous location on the premises so that the public can view it. (11) There shall be no one under twenty-one (21) years of age on the premises after the sales and service of food has been discontinued or at any time after 10:00 p.m. on a day when public dancing is authorized under this permit. (12) Outside queuing space shall be located so as not to obstruct public right-of-way, interfere with any outside eating areas or impede access to adjacent business establishments. Patrons in the outside queuing area shall not be permitted to obtain or consume food or beverages from the business (13) All owners, managers and employees serving and/or sellinq alcoholic beverages in an establishment shall undergo and successfully complete a certified training program in responsible methods and skills for serving and selling alcoholic beverages. To qualify to meet the requirements of this Ordinance No. NS-XXX 5OA-1 0 Page 8 of _ section a certified program must meet the standards of the California Coordinating Council on Responsible Beverage Service (CCC/RBS) or other certifying/licensing body, which the State may designate Records of each owner's manager's and employee's successful completion of the certified training program required by this section shall be maintained on the premises of the alcoholic beverage outlet and shall be presented upon request by a representative of the City of Santa Ana (14) The owner/operator shall submit a security plan for approval by the Chief of Police The establishment owner shall be responsible for ensuring that the business' security personnel or officers implement and enforce at all times an secun Ian approved or re uired for the business. (15) The owner/operator shall provide a Closed Circuit Television System approved by the Police Department and capable of viewing and recording events on the property and inside the premises with a resolution that will clearly identify individuals for later identification Camera system components shall include: (i) A minimum of one color camera at each specified location. (ii) A color camera recorder or digital system capable of recording events on all cameras simultaneously. (iii) A tape or disc storage librarv of recorded cameras kept for a minimum of 60 days (16) The owner/operator shall scan the identification card CID") of each patron into an ID scanner system prior to the patron being granted entry into the premises. The ID scanner system must be reviewed and approved by the Police Chief. Section 7. Section 11-8 of the Santa Ana Municipal Code is hereby deleted in its entirety: business. Section 8. Section 11-9 of the Santa Ana Municipal Code is hereby deleted in its entirety: Ordinance No. NS-XXX 5OA-1 1 Page 9 of_ Cher n. Section 9. Section 11-10 of the Santa Ana Municipal Code is hereby deleted in its entirety: SeG. 11 10. NightGlUb; . Section 10. Section 11-12 of Chapter 11 of the Santa Ana Municipal Code is hereby added to read as follows: Sec. 11-12. Extraordinary Calls for Service Cost Recovery Fee Schedule Adoption The City shall adopt and amend, from time to time, a schedule of fees as described in this Article by Resolution. Section 11. Section 11-13 of Chapter 11 of the Santa Ana Municipal Code is hereby added to read as follows: Sec. 11-13. Extraordinary Calls for Service Cost Recovery Fee (a) Any establishment obtaining a dance permit shall be charged a cost recovery fee in addition to the dance permit fee for recovery of costs generated by extraordinary calls for service by these establishments. The amount of the cost recovery fee shall be determined by the Chief of Police and adopted by resolution into the City fee schedule. Additionally, establishments with a dance permit will be charged for any police related calls for service that are 25% above the average number of calls for service for such establishments, as determined by the Chief of Police. Any establishment with a dance permit that generates a 50% increase in police related calls for service above the average number of calls for service for such establishments, as determined by the Chief of Police, will require reimbursement for the additional responses and initiate a formal review of the operation by the Chief of Police, at which time the Chief of Police may decide to condition, suspend, or revoke the subject dance permit. Ordinance No. NS-XXX 50A-12 Page 10 of_ (b) The Extraordinary Calls for Service Cost Recovery Fee shall be assessed to any establishment obtaining a dance permit at the time of obtaining said dance permit and each time said dance permit is renewed. Section 12. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this day of , 2010 Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Ryan O. Hodge, Deputy City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Ordinance No. NS-XXX 5OA-1 3 Page 11 of _ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No. NS-XXX 5OA-14 Page 12 of_ ~•L ~ r L-A .y_vf,~ R~'r-w1......{.•y L~,; 'S~ ~jrt .4.t ~ ~ 1 'r + 't,'. l' .M `rte' t . •t t41~+. ,,+a'.,g" ~•*1~.' 1 l S~ ! ~ Y 1 i V h. . rl~r ~1..f 1 ~ 1 . - , Sc ~ r ~ ~ .e vi, ~f.~' .•I~ Al -r+ / ~,,.t;,«~ •X •7 • J • .x T .'.l~' . • • t _ X11 a' yd•,+. tLA aro._.: , 74 hill M~'' • ~Y ` •s ~ 1~ r_ .W ~ ~ t ~ rte' ! ' •'I~i.`}; 4.,~ • ~ i`~„ y 4y • -•----r~+ . / ..AEI( tl c~.}_t~ a T j+ .v~ Jy„'"-:a'm...>~+..w. ~ ._•,J~74 l~r.i*I~N ~~,•-`-~°~.~'~;cy.': S• a.gl'J/ p_ " a • ~l: ~t• ,.s• 1~ ~1..~ w,' •At. .4t a. `.I. , 'a (it _,1 •~S ti• .may. `'•k4 .J. a I~L • .~1~.•` , ,y~ .r.•~+;. v 1 46 4, 4F toll Li . ' .ip t -.t,' Irf.'1•!a 1. ' 7 ~rl ~ /u ~ 4. r •^1?• r i, t ,V..~. PIP Ali. ? l 'L 4, rr t 1~ NiL r Air .:T: 1`441%V ` EXHIBIT 1 Special Investigations Meffiiw To: Chief of Police June 15, 2010 From:Yolanda Pena CC: H.J. Couisine, Executive Inspector Re: DANCE ESTABLISHMENT COST RECOVERY FEE Summary The City of Santa Ana has a long history with alcohol beverage establishments that generate an extraordinary amount of police-related calls for service. Numerous studies have shown the correlation between alcohol and violence. The police department has evaluated the relationship between alcohol-licensed establishments and the impact that entertainment such as public dancing has on police services. I found that police-related incidents at dance establishments generate a higher number of calls than non-dance establishments and those calls require an increased level of manpower. Currently, Chapter 11 of the Santa Ana Municipal Code requires that a location at which public dancing is conducted be bona fide eating establishment. The number of ABC licensed locations, which are bona fide eating establishments, and the number of current public dance permits in Santa Ana are as follows. Type 47* ABC license 58 Type 41 * ABC license 120 Public Dance Permits 12 In order to evaluate calls for service (CFS) I compared data for existing dance establishments to similar locations that do not have a dance permit. Since the majority of dance establishments have a type 47 ABC license, those locations were chosen for the first comparison. "Type 41 - On-sale beer & wine, public eating-place "Type 47 - On-sale general, public eating place (includes beer wine and distilled spirits) EXHIBIT 2 1 Comparison #1 After reviewing all ABC type 47 establishments, I eliminated uses such as hotels and golf courses due to alcohol sales comprising a very small portion of their business. Also eliminated were alcohol establishments located at Main Place Mall and other large shopping centers with a common address due to the difficulty of attributing the activity to one specific location. A remainder of thirty-seven (37) locations was found to have a unique address and similar type of license. An evaluation of 2009 CFS data for those locations found that CFS at dance establishments exceeded those of similar establishments that did not conduct dancing. The average number of CFS at a dance establishment is 17 while the average number of CFS at an establishment without public dancing is six (6). The number of hours spent on CFS is just as disparate. Police Department personnel spend an average of 17 hours on CFS at dance establishments. The average number of hours spent at locations without dancing is seven (7). 18 16 14 j 12 i 10 8 ?CFS 6 ' ? Hours 4 2 0 -r Restaurants Restaurants w/ Dancing Comparison #2 A comparison was made of establishments that are located within the same shopping center. The locations with dance permits have a type 47 ABC license, those that do not have dance permits have a type 41 ABC license. In the first two examples, the locations have the same physical address but are at the opposite end of the shopping center. In the third example, the locations are exactly the same size, have the same type of ABC license, and are at the opposite end of the center. The difference in both the number of calls and hours spent on calls is consistent with Comparison #1. 0 Page 2 1701 E. McFadden Avenue 25 i ~ i 20 I I 15 10 ~ ?CFS 10 5 ®Hours 0 r:~~ I - Suite F (No DanceSuite K (Dance Permit) Permit 230 W. Warner Avenue 30 25 20 15 ! ?CFS 10--,, ~ ®Hours 0 AMA= 1-7 1 Suite 107 (No Suite 101 Dance Dance Permit) Permit) 18- 16 12- 10- 8- ?CFS 6 - 91 Hours 4 ~ 2 _ I 0 l 3608 S. Bristol (No 3672 S. Bristol (Dance Dance Permit) Permit) 0 Page 3 Comparison #3 The majority of dance establishments are less than 5000 sq. feet. However, there are a few establishments over 10,000 sq. feet. A comparison was made of those larger establishments and the data reflected the same differences in CFS and hours as the other examples. All establishments used in this comparison have a type 47 ABC license. Establishments Over 10k Sq. Ft. 25- 20-',15- 10 ?CFS 5 ? Hours Q , Black Angus (No Claim Jumper Festival Hall El Cortez (Dance Dance Permit) (No Dance (Dance Permit) Permit) Permit) Comparison #4 An evaluation of seven locations within the Artist Village area that do not conduct dancing, found that the number of CFS generated was similar to dance establishments, contrary to the three prior comparisons. This may be attributed to the high level of activity in the area, the adjacent residential uses and concentration of alcohol-licensed establishments. It should be noted that although the number of CFS was similar, the number of hours spent is comparable to those establishments that do not conduct dancing. These locations are a mixture of bar and restaurant uses. Artist Village Comparison 20 15 5 ?CFS D Hours Citywide Artist Village Restaurants Restaurants w/o w/Dancing Dancing The City can expect a further increase in CFS and police service time devoted to the downtown area, should those establishments add public dancing. 0 Page 4 Results The data convincingly supports the premise that the City's dance establishments generate an extraordinary amount of police-related calls and require a greater number of police service hours than establishments that do not provide that type of entertainment. An unexpected result of the comparisons made was the significance of man-hours as opposed to number of calls for service. While there were a few locations that generated a similar number of CFS, it is important to note that the hours and personnel devoted to calls at dance establishments was much greater. For example, a gang-related disturbance at a dance establishment required 8 officers and a total of 10 man-hours to clear. An assault or drunk arrest at a location with a dance permit may demand 4 to 12 hours of police services. The time devoted to calls and number of personnel appears to be dictated by the events surrounding each incident. Recommendation To help the City recapture some of those extraordinary costs, the Police Department proposes to assess a 'cost recovery fee'. Establishments that obtain a public dance permit will be assessed this fee in addition to the application fee. Both fees will be collected each time the establishment applies to renew their dance permit. The goal of this fee is to maintain a strong sense of public safety without creating a burden to the City. • Page 5 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED BIENNIAL REVIEW OF CITY O As Recommended CLASSIFICATIONS REQUIRED TO FILE A O As Amended 0 Ordinance on I" Reading STATEMENT OF ECONOMIC INTERESTS 0 Ordinance on 2^' Reading FORM 0 Implementing Resolution 0 Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution amending the Conflict of Interest Codes of Certain City Agencies and Departments. DISCUSSION The California State Government Code specifies that local agencies must review their Conflict of Interest Codes each even-numbered year. Changes to the codes must be adopted by the City Council as the code reviewing body for City agencies and departments. Pursuant to State requirements, we have reviewed the Code for each City agency. The City's Code has been revised to include new positions added since the last code review, delete positions that have been eliminated or whose duties do not include making or participating in governmental decisions, and modify the Disclosure Category for some positions as indicated in the attached resolution. City staff recommends the following changes to the list of designated filers as follow: Additions: Community Services Manager (Parks Recreation and Community Services) Housing Program Analyst (Community Development Agency) Senior Management Analyst (Finance Management Services Agency) Redevelopment Project Manager I (Community Development Agency) Residential Construction Specialist (Community Development Agency) Treasury Services Supervisor (Finance Management Services Agency) Deletions: Administrative Assistant II (Planning and Building Agency) Assistant Director of Parks Recreation Community Services Agency Chief Assistant Clerk of the Council City Traffic Engineer (Public Works Agency) Community Affairs Manager (Parks Recreation and Community Services) 55A-1 BIENNIAL REVIEW OF CITY CLASSIFICATIONS REQUIRED TO FILE A STATEMENT OF ECONOMIC INTERESTS FORM September 20, 2010 Page 2 Deletions: Downtown Development Manager (Community Development Agency) Library Director Park Maintenance Superintendent (Parks Recreation and Community Services) Recreation Superintendent (Parks Recreation and Community Services) Senior Land Surveyor (Public Works Agency) Transportation Manager (Public Works Agency) WORK Center Coordinator (Community Development Agency) FISCAL IMPACT There is no fiscal impact associated with this action. Maria D. Huizar, Clerk of the Council 55A-2 RESOLUTION NO. 2010-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING THE CONFLICT OF INTEREST CODES OF CERTAIN CITY AGENCIES AND DEPARTMENTS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS Section 1. The City Council of the City of Santa Ana hereby finds determines and declares as follows: A The various offices agencies and departments of the City of Santa Ana have maintained Conflict of Interest Codes pursuant to the Political Reform Act of 1974 (California Government Code sections 81000 et seq.) since the enactment of that law. B The last comprehensive revision of the Conflict of Interest Code of the various offices, agencies, and departments of the City is set forth in City Council Resolution No. 2008-064 adopted September 2, 2008. C Certain agencies and departments of the City now desire to amend the Conflict of Interest Code set forth in Resolution No. 2008-064. Section 2. The persons holding designated positions defined in Exhibit A attached to and made part of this resolution shall file statements of economic interest pursuant to the requirements of the City's Conflict of Interest Code. Section 3. The disclosure categories as defined in Exhibit B are attached to and made a part of this resolution. Section 4. This resolution shall supersede and replace Resolution No. 2008- 064. Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. 55A-3 ADOPTED this day of 12010. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Laura Sheedy Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Resolution No. 2010-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Maria D. Huizar, Clerk of the Council 55A-4 CITY OF SANTA ANA CONFLICT OF INTEREST CODE DESIGNATED POSITIONS Exhibit A This Conflict of Interest Code is adopted for the City of Santa Ana California pursuant to the Political Reform Act of 1974 (California Government Code, Sections 81000 g.). It consists of the model code set forth in Regulation 18730 of the Fair Political Practices Commission, incorporated herein by reference, together with the following Appendix: DESIGNATED EMPLOYEES DISCLOSURE CATEGORY Office of the City Manager City Manager Assistant City Manager 1 Executive Director of External Affairs 1 Assistant to the City Manager 1 Consultant " 1 Office of the Clerk of the Council Clerk of the Council 1 Office of the City Attorney City Attorney " Chief Assistant City Attorney 1 Senior Legal Management Assistant 4 Senior Assistant City Attorney 1 Assistant City Attorney 1 Deputy City Attorney 1 Community Development Agency Deputy City Manager for Development Services 1 Assistant Director of Community Development 1 Community Development District Manager 1 Economic Development Manager 1 Economic Development Specialist II 2,4 Economic Development Specialist III 2,4 Employment Services Fiscal Specialist 4 55A-5 Housing Authority Coordinator 2,4 Housing Authority Operations Supervisor 4 Housing Division Manager 1 Housing Programs Analyst 2,4 Housing Programs Coordinator 2,4 Housing Specialist 1 2,6 Housing Specialist II 2,6 Loan Specialist 2 Management Aide 2 Management Analyst 2,4 Redevelopment Program Manager 1-,-2 Redevelopment Project Assistant 4,2 Redevelopment Project Manager 1 2, 4, 5 Redevelopment Project Manager II 2, 4, 5 Redevelopment Project Manager III 1 Residential Construction Specialist 2,5 Senior Community Development Analyst 2,4 Senior Housing Specialist 2 Senior Management Analyst 2,4 Senior Management Assistant 2,4 Senior Residential Construction Specialist 2,5 Workforce Specialist III 2,4 Workforce Specialist IV 2,4 Finance Management Services Agency Executive Director Administrative Services Manager 1 Assistant Director of Finance Management Services 1 Budget and Research Manager 1 Business Tax Collector / Inspector 1 Buyer 3, 5, 7 Central Services Supervisor 3 Corporate Yard Facilities / Fleet Services Mgr 3 Facilities Maintenance Superintendent 3, 5 Fleet Equipment Supervisor 3 Information Services Manager 3 Purchasing Supervisor 3, 5,7 Revenue Supervisor 1 Senior Management Analyst 4 Storekeeper 3 Supervising Accountant 1 Supervising Buyer 3, 5, 7 Treasury Manager 1 Treasury Services Supervisor 1 55A-6 Fire Department Fire Chief 1 Deputy Fire Chief 1 Fire Battalion Chief 1 Fire Marshal 1 Fire Safety Analyst 6 Fire Safety Specialist 1, 11,& III 6 Firefighters (Underground Tanks) 2,6 L .bran , Dire^+er 4- Parks Recreation and Community Services Executive Director 1 Administrative Services Manager 1 Assistant E-Nrester of Parks Recreation GqF it Serv;oes 4- AsenGr Rity Affairs Manager 4 Park nnaiRte..aRGe Sue 4, n+en"~ en+ ^ ~ I' rye SU RteRdent 4 cd :7 Community Services Manager 4, 5,7 Senior Management Analyst 1 Zoo Manager 4, 5, 7 Personnel Services Department Executive Director 1 Assistant Director of Personnel Services 1 Benefits & Compensation Manager 1 Liability Claims Coordinator 1 Personnel Operations Manager 1 Risk Manager 1 Worker s Compensation Administrator 4 Planning and Building Agency Executive Director 1 Adr-niRistrative Assistant Assistant Director of Planning and Building 1 Assistant Plan Check Engineer 1 2,7 Assistant Plan Check Engineer II 2,7 Assistant Planner 1 6 Assistant Planner 11 6 Associate Plan Check Engineer 2,7 Associate Planner 6 Building Inspector 6 Building Safety Manager 1 Combination Building Inspector 6 55A-7 Community Preservation Coordinator 1 Community Preservation Inspector 6 Community Preservation Manager 1 Deputy Building Official (New Construction) 1 Deputy Building Official (Plan Check) 1 Electrical Inspector 6 Electrical Plan Checker 6 Landscape Development Associate 6 Management Analyst 4,7 Permit Supervisor 2, 7 Permit Technician 6 Planning Manager 1 Plumbing Inspector 6 Plumbing Mechanical Inspector 6 Principal Plan Check Engineer 2,7 Principal Planner 2,7 Senior Building Inspector 6 Senior Combination Building Inspector 6 Senior Community Preservation Inspector 6 Senior Electrical Inspector 6 Senior Electrical Systems Specialist 6 Senior Plan Check Engineer 2,7 Senior Planner 2 Senior Plumbing / Mechanical Systems Specialist 6 Senior Plumbing Inspector 6 Supervisor of Inspections 2, 6, 7 Police Department Police Chief 1 Jail Administrator 1 Police Captain 1 Police Communications Manager 4 Police Fiscal Officer 1 Police Lieutenant 1 Police Property & Facilities Manager 1 Police Records Manager 4 Police Technology & Support Administrator 1 Public Works Aciency Executive Director 1 Administrative and Enterprise Services Manager 1 City Engineer 1 -r Deputy City Engineer 2, 4, 5, 7 Principal Civil Engineer 2, 5, 7 Projects Manager 2,7 55A-8 Public Works Maintenance Manager 1 Senior Civil Engineer 2, 5, 7 Senior Engineer 2, 5,7 Se^•e' Land Su e Senior Transportation Analyst 2, 5,7 Tr-anspertation IN'4anager- 4 Transit Program Manager 1 Water Resources Manager 1 Board Commissions Community Redevelopment & Housing Commission Members 1 Environmental / Transportation Advisory Committee Members 1 Historic Resources Commission Members 1 Personnel Board Members 1 Planning Commission Members Workforce Investment Board Members 1 'The City Manager, City Attorney, Executive Director of Finance Management Services Agency, and Planning Commissioners file Economic Disclosure Form 700 with the Fair Political Practices Commission per Government Code Section 87200. "City Consultants shall be included when the City Manager determines in writing that a particular consultant is hired to perform duties that would constitute a "designated position". Such written determination shall include a description of the consultant's duties and, based upon the description, a statement of the extent of disclosure requirements. The determination by the City Manager is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. 55A-9 55A-10 CITY OF SANTA ANA CONFLICT OF INTEREST CODE DISCLOSURE CATEGORIES Exhibit B Required filers must review all Form 700 Schedules and complete forms as mandated by the specific Disclosure Category designated. Disclosure Category 1: Full Disclosure Persons in this category shall disclose all applicable investments, business positions, income, any interests in real property located in the City or within a two mile radius of the City, and, any interests in property owned or used by the City. Disclosure Category 2: Decision Making Authority Affecting Real Property Persons in this category shall disclose all applicable investments, business positions, and income, including loans and gifts, from sources which engage in land development, construction, or the acquisition or sale of real property; also reportable are all interests in real property located in the City and within a two mile radius of the City or of any property owned or used by the City. Disclosure Category 3: City-wide Purchasing Responsibilities Persons in this category shall disclose applicable investments, business positions, and income, including loans and gifts, from sources which provide services, supplies, materials, machinery, or equipment of the type utilized by the City Disclosure Category 4: Department/Division Purchasing Responsibilities Persons in this category shall disclose all applicable investments, business positions, and income, including loans and gifts, from sources which provide services, supplies materials, machinery, or equipment of the type utilized by the designated employees agency, department, or division. 55A-11 Disclosure Category 5: Public Works/Construction Projects Responsibilities Persons in this category shall disclose all interests in and income from businesses engaged in construction, landscaping, street repair, traffic signal installation or modification or the supply of materials for any of the above. Disclosure Category 6: Regulatory Power Persons in this category shall disclose all applicable investments, business positions, and income, including loans and gifts, from any source which is subject to the regulatory, permit, or licensing authority of the designated employee's agency, department, or division. Disclosure Category 7: Planning and Engineering Persons in this category shall disclose all applicable investment, business positions, and income, including loans and gifts, from any source engaged in engineering, planning, and design services. 55A-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED ? As Recommended SCAG'S BUSINESS FRIENDLY ? As Amended PRINCIPLES ? Ordinance on 1" Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution in support of the Southern California Association of Governments' (SCAG) Business Friendly Principles. DISCUSSION As part of the development of a Southern California Economic Growth Strategy (Strategy) and in preparation for the December 2nd Southern California Road to Economic Recovery Summit that SCAG is coordinating with the Governor-Elect, SCAG is recommending that member cities approve a resolution promoting Business Friendly Principles. As the metropolitan planning organization with a focus on transportation planning, SCAG's understanding of the economic drivers and trends of Southern California are important and intrinsically linked to developing a successful Regional Transportation Plan. Historically, SCAG has studied and tracked the economic conditions of the region and used such information in its planning efforts. The project is divided into two phases. The first phase focuses on collecting economic data and existing economic development plans from counties and cities, and then preparing a proposed regional action plan. The goal is to identify areas where SCAG can partner with member cities, counties, business leaders and other key stakeholders to address economic challenges to Southern California's economic recovery. The second phase is to develop ways to increase investments from outside the region into Southern California and to promote new business opportunities. SCAG has budgeted $450,000 to develop this economic analysis and regional growth strategy. FISCAL IMPACT There's no fiscal impact associated with this request. 55B-1 55B-2 RESOLUTION NO. 2010-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA IN SUPPORT OF "BUSINESS FRIENDLY PRINCIPLES" AS PART OF SCAG'S DEVELOPMENT OF A SOUTHERN CALIFORNIA ECONOMIC GROWTH STRATEGY. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Whereas, City of Santa Ana is a member of the Southern California Association of Governments (SCAG) who is engaged in the development of a Southern California Economic Growth Strategy; Whereas, since economists agree that the financial recovery for our region will be slow and challenging, the City supports working with SCAG and other key economic stakeholders to analyze the current trends, identify obstacles to economic growth and promote incentives and public policies that will improve the Southern California economy; Whereas, as a municipality, Santa Ana has a business friendly environment and has numerous programs in place to encourage economic growth within its community; NOW, therefore be it resolved that, as part of the development of a Southern California Economic Growth Strategy, the City supports SCAG's efforts to create a region-wide work plan that will be communicated to state and local officials to assist in our area's economic recovery. 1. Principle One - Make economic development a priority 2. Principle Two - Expand business partnerships in the community. 3. Principle Three - Promote business friendly processes and procedures. 4. Principle Four - Attractive business investment to the region. ADOPTED this day of , 2010. Miguel A. Pulido Mayor 55B-3 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2010-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Maria D. Huizar Clerk of the Council City of Santa Ana 55B-4