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HomeMy WebLinkAboutItem 25 - Memorandum of Understanding Establishing the Terms and Conditions of Employment for SAMA25. Memorandum of Understanding Establishing the Terms and Conditions of Employment for Classifications Represented by the Santa Ana Police Management Association Department(s): Recommended Action: Authorize the City Manager to execute a Memorandum of Understanding with the Santa Ana Police Management Association ("PMA") regarding wages, hours, and other terms and conditions of employment effective July 1, 2025 through June 30, 2028 (Agreement No. A-2025-XXX). Human Resources Department www.santa-ana.org/HR Item # 25 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 2, 2025 TOPIC: Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Management Association AGENDA TITLE Memorandum of Understanding Establishing the Terms and Conditions of Employment for Classifications Represented by the Santa Ana Police Management Association RECOMMENDED ACTION Authorize the City Manager to execute a Memorandum of Understanding with the Santa Ana Police Management Association ("PMA") regarding wages, hours, and other terms and conditions of employment effective July 1, 2025 through June 30, 2028 (Agreement No. A-2025-XXX). GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The City recently reached a tentative agreement with PMA on a three (3) year successor Memorandum of Understanding ("MOU") effective July 1, 2025 through June 30, 2028. The tentative agreement has been ratified by PMA membership. The major provisions of the agreement include: salary increases of five percent (5%) retroactive to July 13, 2025, four percent (4%) in July 2026, and three percent (3%) in July 2027; increasing City medical contributions by fifty dollars ($50) for employee only coverage and one hundred fifty dollars ($150) per month for multi -person coverage in January 2026, January 2027, and January 2028; and providing longevity pay. Other key terms of the agreement include: modifying the provisions for cash out of sick leave upon separation; adding language to maintain a minimum 5% differential between certain non -sworn classifications and the classifications they directly supervise; and modifications to vacation cash out provisions to ensure compliance with constructive receipt. ENVIRONMENTAL IMPACT There is no environmental impact associated with these actions. Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Management Association December 2, 2025 Page 2 FISCAL IMPACT The estimated annual cost of the agreement during the three (3) year period is $433,177 for FY 2025-26, $747,801 for FY 2026-27, and $999,093 for FY 2027-28, for a total estimated cost of $2,180,071. The FY25-26 budget included a 4% set -aside for increased compensation. Based on current year employee position vacancies in the Police Department, the FY25-26 budget is sufficient to absorb the amount in excess of the set - aside for the first year of the MOU. EXHIBIT 1. Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Management Association Submitted By: Lori Schnaider, Executive Director — Human Resources Department Approved By: Alvaro Nunez, City Manager MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SANTA ANA AND SANTA ANA POLICE MANAGEMENT ASSOCIATION REPRESENTATION UNIT JULY 11) 2025 THROUGH JUNE 30, 2028 TABLE OF CONTENTS ARTICLE SUBJECT PAGE ARTICLE I Recognition 3 ARTICLE II Non -Discrimination Clause 4 ARTICLE III Attendance, Workday, Workweek and Work Schedule 5 ARTICLE IV Salaries 6 ARTICLE V Assignment and Other Special Pay Additives 13 ARTICLE VI Educational Incentive Program 15 ARTICLE VII Training and Educational Assistance Program 18 ARTICLE VIII Overtime 21 ARTICLE IX Holidays 22 ARTICLE X Vacation 25 ARTICLE XI Other Leaves of Absence 29 ARTICLE XII Employee Insurance 37 ARTICLE XIII Deferred Compensation 41 ARTICLE XIV Retirement 42 ARTICLE XV Technology Stipend 45 ARTICLE XVI Expanded Residency 46 ARTICLE XVII Controlled Parking and Take Home Vehicle Privileges 47 ARTICLE XVIII Discipline 48 ARTICLE XIX Grievance Review Procedure 51 ARTICLE XX Dues Deduction and Indemnification 54 ARTICLE XXI City Rights 55 ARTICLE XXII Strikes and Work Stoppages 57 ARTICLE XXIII Sole and Entire Agreement 56 ARTICLE XXIV Waiver of Bargaining During the Term of MOU 57 ARTICLE XXV Severability Provision 58 ARTICLE XXVI Term of MOU 61 ARTICLE XXVII Ratification and Execution 62 EXHIBIT A 64 2 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 Police Management Association (hereinafter called the "Association") as the recognized representative of the bargaining unit which includes full-time Police Department employees in the sworn, "safety -member" classifications and assignments of Police Lieutenant, and Police Captain, and full-time department employees in the non -sworn, "miscellaneous - member" classifications and assignments of Police Communications Manager, Police Administrative Budget Manager, Police Administrative Manager, Jail Administrator, Correctional Manager, and Police Systems Manager. 3 ARTICLE II 2.0 NON-DISCRIMINATION CLAUSE 2.1 The City and the Association agree that they shall not discriminate against any employee in violation of State or Federal law. The City and the Association shall reopen any provision of this Memorandum of Understanding (hereinafter called the "MOU") 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 MOU in compliance with State or Federal anti -discrimination laws. 2 ARTICLE III 3.0 ATTENDANCE, WORKDAY, WORKWEEK & WORK SCHEDULE 3.1 Attendance. Employees shall be in attendance at their work during hours prescribed by the Police Chief or their designee(s) and shall not absent themselves during prescribed hours without authorization from the Police Chief or their designee. Employees shall not be required to submit a Leave of Absence Request for absences of two (2) hours or less, provided that they have received prior authorization from the Police Chief or their designee. 3.2 Alternative Work Schedules. A. All employees, except those Police Lieutenants assigned as Watch Commanders or assigned to positions designated by the Police Chief as special exemptions, shall be permitted, at the employee's option, to work a 4/10 work schedule. Each workday shall consist often (10) hours of work and thirty (30) minutes unpaid mealtime. Said schedule shall be set by the Police Chief and subject to annual review by the Police Chief. B. All employees (except those Police Lieutenants assigned as Watch Commanders) not assigned to the 4/10 work schedule shall work a 9/80 work schedule. Employees assigned to the 207(k) 9/80 work schedule shall work either five (5) nine -hour workdays in the first seven (7) day span and three (3) nine -hour and one (1) eight - hour workdays in the second seven (7) day span, or alternatively three (3) nine -hour workdays and one (1) eight -hour workday in the first seven (7) day span and five (5) nine -hour workdays in the second seven (7) day span. Each nine (9) hour workday shall consist of nine (9) hours of work and thirty (30) minutes unpaid mealtime. The eight (8) hour workday shall consist of eight (8) hours of work and thirty (30) minutes of unpaid mealtime. C. Police Lieutenants assigned to the Field Operations Division as Watch Commanders will continue to be assigned to a 3/12 — 4/12 work schedule. The minimum work day for these employees will consist of eleven (11) hours and thirty (30) minutes of work, with thirty (30) additional minutes for meals. A minimum work period shall consist of two (2) consecutive weeks, with three (3) shifts of eleven (11) hours and thirty (30) minutes in one (1) week and four (4) shifts of eleven (11) hours and thirty (30) minutes in the second week. D. For purposes of computing holiday, vacation, and sick leave accruals, an eight (8) hour day shall be the basis for computation. 5 ARTICLE IV 4.0 SALARIES 4.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all members of the Association who are now employed or will in the future be employed in any of the designated classifications of employment listed in this MOU. 4.2 Salary Schedule. The basic salary schedule, as periodically updated and published by the City is comprised of five (5) steps or rate ranges of pay for sworn (CAPERS "Safety") employees and five (5) steps or rate ranges of pay for non -sworn (CAPERS "Miscellaneous") employees. The steps within each range are identified by the letters "A" through "E" inclusive for sworn (CAPERS "Safety") classifications and "AA" through "E" inclusive for non -sworn (CAPERS "Miscellaneous") classifications, with Step "A" being the lowest step for sworn (CAPERS "Safety") and Step "AA" being the lowest step for non -sworn (CAPERS "Miscellaneous") classifications. The assignment of classes to salary rate ranges during the term of this MOU is listed in Exhibit A. 4.3 Salaries. A. The base salaries of employees shall be adjusted as follows: Effective the first full pay period following July 1, 2025, classifications covered by this MOU shall receive a salary increase of five percent (5%). 2. Effective the first full pay period after July 1, 2026, employees covered by this MOU shall receive a salary increase of four percent (4%). 3. Effective the first full pay period after July 1, 2027, employees covered by this MOU shall receive a salary increase of three percent (3%). 4. Effective July 1, 2020, the City agrees, after implementation of the four percent (4%) salary increase effective July 1, 2020, to maintain approximately five percent (5%) between the classes of Top Step Sergeant including all pay additives available to this classification and Police Lieutenant "D" Step including Supervisory Post Additive (minimum five percent (5%)) and Bilingual Pay Additive. on 5. Effective upon Council adoption of this MOU, the City agrees to maintain five percent (5%) between the classes of Top Step Correctional Supervisor, inclusive of all available pay additives, and Top Step Correctional Manager, inclusive of all available pay additives. All available pay additives shall mean the maximum available pay additives to a single employee in their respective classification. 6. Effective upon Council adoption of this MOU, the City agrees to maintain five percent (5%) between the classes of Top Step Communications Supervisor, inclusive of all available pay additives, and Top Step Communications Manager, inclusive of all available pay additives. All available pay additives shall mean the maximum available pay additives to a single employee in their respective classification. 7. The City and Association agree that upon the expiration of this MOU and during the period of good faith negotiations for a subsequent contract, salary and benefits shall continue at the then current rate. Although there are some retroactive compensation adjustments included in this 2025 - 2028 MOU, all compensation adjustments provided for in this MOU shall apply only to those employees who are employed on the day in which the City Council approves this MOU. This applies to compensation adjustments in any Article of this MOU. B. The City agrees, during the term of this MOU, to maintain approximately seventeen percent (17%) between the classes of Police Captain and Police Lieutenant. 4.4 Longevity Pay. Effective the first full pay period following Council adoption of this MOU, employees will receive longevity pay as follows. Sworn Employees — employees in the classifications of Police Lieutenant and Police Captain will be paid at a rate of four and one-half percent (4.5%) above their base monthly salary step for the completion of six (6) consecutive years of service as a Police Lieutenant and/or Police Captain with the City of Santa Ana. Non -Sworn Employees — employees in non -sworn classifications listed in Exhibit A will be paid at a rate of two and one-half percent (2.5%) above their base monthly salary step for the completion of six (6) consecutive years of service with the City of Santa Ana in any of the non -sworn classifications or combination of non -sworn classifications listed in Exhibit A. 4.5 Application of Basic Compensation Plan. All employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, as set forth in 7 Exhibit A. 4.6 Beginning Rates. An employee appointed to one of the designated sworn (CAPERS "Safety") classifications of employment listed in this MOU may be placed by the appointing authority at Step "A," Step "B," Step "C", or Step "D" within the applicable rate range in the schedule to which the class has been allocated by Resolution of the City, provided that such employee shall be assigned such salary step upon the commencement of their service in said classification 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 the Article. An employee appointed to one of the designated non -sworn (Ca1PERS "Miscellaneous") classifications of employment listed in this MOU may be placed by the appointing authority at Step "AA", Step "A", Step "B", or Step "C" within the applicable salary rate range as provided above. 4.7 Service. The word "service" as used in this MOU 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 s working day of a pay period shall not be credited with "time in service" for that pay period 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 ten (10) calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purpose of this MOU and any such employee reentering the service of the City shall be considered as a new employee, except that they may be reemployed within two (2) years and placed in the same salary step in the appropriate salary rate as they were at the time of termination of employment. "Resignation, quit, or discharge" for purposes of this section shall mean leaving City service altogether and not movement within City employment by way of transfer, promotion, or demotion between and among any City departments. 4.8 Advancement Within Ranges. The following regulations shall govern salary advancement within rate ranges: A. For any employee who has been initially appointed to a step lower than Step "B," advancement to the next higher step (Step "A" from Step "AA," Step "B" from Step "A," Step "C" from Step "B," Step "D" from Step "C," or Step "E" from Step "D" respectively) shall be granted for continued satisfactory and efficient service by said employee in the effective performance of the duties of their position. The effective date of step increases, if granted, shall be the first (Ps day of the pay period following completion of one (1) year of service at the step to which said employee is being advanced. N. Such merit advancement shall require the following: There shall be on file in the Office of the Executive Director of Human Resources a copy of each periodic efficiency or performance 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 their last salary advancement. 2. The Police 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 step increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified of the reasons therefore. 3. No advancement in salary above the lowest step in the salary rate range of the designated classification shall become effective until approved by the City Manager, except when placement on a salary step above the lowest step in the applicable salary rate range results from promotion under the provisions of Section 4.10. B. When an employee has not been approved for advancement to the next higher salary step, they may be reconsidered for advancement to the next higher step above their then current step 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. 4.9. Annual Performance Based Bonus Pay: Each employee covered by this MOU may be eligible to receive an annual performance bonus for superior performance as a one-time monetary incentive payment based on a percentage of current annual rate of base salary in accordance with the following criteria in Sections 4.9(A) through 4.9(C). A. Performance Levels For overall superior performance rated as `5' Significantly Exceeds Expectations, a one-time monetary incentive payment of five percent (5%). 2. For overall superior performance rated as `4' Exceeds Expectations, a one- time monetary incentive payment of two and one-half percent (2.5%). X 3. For overall performance rated as `3' Meets Expectations, no monetary incentive payment. 4. For overall performance rated as `2' Below Expectations, no monetary incentive payment. 5. For overall performance rated as `1' Significantly Below Expectations, no monetary incentive payment. B. Upon an employee failing to receive a rating of "Significantly Exceeds Expectations" in their Annual Performance Evaluation, the supervisor shall promptly prepare a written document which details objectives the employee must meet in order to receive a "Significantly Exceeds Expectations" rating for that evaluation period and provide that document to the employee. The employee's evaluation will be held in abeyance for a period no longer than ninety (90) days, allowing the employee time to attempt to achieve the objectives. During this time any Performance Based Salary Adjustment for an "Exceeds Expectations," if awarded, shall not be processed. If the employee fails to achieve a rating of "Significantly Exceeds Expectations" within the ninety (90) day period, they will not be eligible for the "Significantly Exceeds Expectations" bonus for that rating period. C. Application of Guidelines 1. Any one-time incentive payment granted under this plan is not an increase in base salary and no salary rate range applicable to an employee shall be changed or deemed to have been changed by reason of such payment. However, such incentive payment for Classic Ca1PERS members as allowable under CCR Section 571a will be reported to Ca1PERS as special compensation for calculation towards retirement. 2. In the event that Ca1PERS determines that such payments do not meet the definitions listed in CCR Section 571 a as special compensation to be reported to Ca1PERS, the City will convert the incentive payment for eligible employees to a meritorious step on the salary range as set forth in section 4.9(C)(7). 3. An employee that is deemed to be a "New Ca1PERS Member" is not eligible to have the incentive payment reported to Ca1PERS as special compensation. See Government Code section 7522.34(c) and PERS circular 200-064-17 dated December 6, 2017, a bonus is not "PERSable" compensation for new members. 10 4. Employees must complete a full year of service to be eligible for the annual performance bonus. An employee that is off on IOD or other leave of absence (excluding vacation or management time off) for ten (10) consecutive work days or more will have their annual bonus payment delayed by the total length of time of such absences. The employee will not be eligible for the incentive bonus payment until completing the required time in their regular position necessary to complete a full year of service. Subsequent performance based bonus pays will be dependent upon completing a full year of service from the effective date of the prior bonus. 5. Performance based monetary incentive payment amounts for employees shall be recommended by the employee's supervisor and requires the approval of both the Police Chief and City Manager. 6. The Police Chief shall be responsible for the development and administration of detailed administrative procedures and guidelines for the consistent and effective application of the Association performance appraisal evaluation criteria. Such procedures and guidelines shall define how performance objectives, measure and standards are developed; when and how performance reviews are to be carried out; how overall performance ratings will be determined; and how performance based monetary incentive payment options are to be exercised. 7. If it is determined by Ca1PERS that the "Bonus" is not eligible to be included as "PERSable" compensation, the City shall convert the bonus to two (2) additional merit based steps at increments of two and one-halfpercent (2.5%) for the last year that the employee earned the Bonus. The Association understands and agrees that these steps would be merit based and employees must maintain a Significantly Exceeds rating to receive or maintain the five percent (5%) or Exceeds Expectations rating to receive or maintain the two and one-half percent (2.5%). Employees who do not receive Significantly Exceeds rating or Exceeds Expectations rating will be returned to Step D of the Association salary schedule. 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 bargaining unit, they shall be reassigned to the lowest step in the appropriate salary rate range for the higher classification that gives the employee a minimum increase of one (1) salary step (approximately five percent (5%) over their current base salary step (plus any pay for performance bonus if said employee was at top step in their current classification) and exclusive of any pay additive or additives such as shift differential, assignment pay, special skill pay, or the like. 11 4.11 Demotion. When an employee is demoted to a position in a lower classification, their 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) step. B. The new salary rate must be within the appropriate salary rate range. D. The new salary rate shall not be higher than the salary step to which the employee would have been entitled had their service time in the higher classification been spent in the lower classification. 4.12 Reallocation of Salary Rate Ranges. An 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. 12 ARTICLE V 5.0 ASSIGNMENT & OTHER SPECIAL PAY ADDITIVES 5.1 Bilingual Assignment Pay. An employee who speaks both English and either Spanish, Samoan, Vietnamese, or other languages designated by the Police Chief, will be paid a monthly assignment pay differential in accordance with the criteria and amounts set forth below: A. An employee who works in a position where it 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 and essential element of the work being performed shall be paid a monthly differential of one hundred seventy five dollars ($175) above their then current base monthly salary step, upon certification by the Executive Director of Human Resources that the employee has satisfactorily demonstrated conversational fluency in both languages. B. Employees who receive bilingual assignment pay shall recertify their bilingual capability every three (3) years after the date of initial certification. Employees who do not successfully pass required recertification examinations shall have their bilingual assignment pay removed. 5.2 Acting Pay. Acting pay shall be defined as the temporary assignment of an employee to perform work of a job class (represented by the Association) which is assigned to a higher salary schedule than their regular job class. An employee who is temporarily appointed by the Chief of Police to serve in an acting capacity for two (2) weeks or more and who is responsible for the full range of duties and responsibilities assigned to the higher level classification, shall receive a five percent (5%) increase in base salary or the minimum salary of the higher level classification (whichever is higher) for all time worked in the higher job classification. A. Employees temporarily assigned to serve in an acting capacity of an Executive Management (Executive Director) classification for thirty (30) consecutive calendar days or more and who is responsible for the full range of duties and responsibilities assigned to the Executive Management position shall receive a ten percent (10%) increase or the minimum salary of the Executive Management classification (whichever is higher) for all time worked in the higher job classification. B. An employee must be qualified (i.e. meet the minimum qualifications) for the higher position in order to be paid for acting pay. 13 C. Non -permanent employees (probationary, seasonal, temporary, limited -term, etc.) shall not be eligible for acting pay. D. In computing qualifying service rendered, only full -days shall be computed for acting pay, and partial days shall not be combined to make full days. E. Each assignment may be terminated at any time, but in no event shall such assignment continue beyond one hundred eighty (180) calendar days or nine hundred sixty (960) hours each fiscal year, whichever comes first. 14 ARTICLE VI 6.0 EDUCATIONAL INCENTIVE PROGRAM 6.1 All eligible employees currently receiving Educational Incentives listed in Section 6.1(A) through Section 6.1(I) (as described below) as of July 1, 2019 will be "grandfathered in" to continue to receive those incentives. In no event shall the application of this Educational Incentive program described in Section 6.1 result in an employee being eligible to earn more than ten percent (10%) above their then current base monthly salary step. A. FBI National Academy. Any employee who successfully completes the FBI National Academy shall be paid at a rate set approximately five percent (5%) above their then current base monthly salary step. B. California Command College. An employee who successfully completes the California Command College shall be paid at a rate set approximately five percent (5%) above their then current base monthly salary step. C. LAPD Leadership Program. An employee who successfully completes the LAPD Leadership Program shall be paid at a rate set approximately two and one-half percent (2.5%) above their then current base monthly salary step. D. Police Executive Research Forum (PERF) Senior Management Institute for Police. An employee who successfully completes the Senior Management Institute for Police shall be paid at a rate set approximately two and one-half percent (2.5%) above their then current base monthly salary step. E. FBI National Academy LEEDS Program). An employee who successfully completes the FBI LEEDS Program shall be paid at a rate set approximately two and one-half percent (2.5%) above their then current base monthly salary step. F. International Association of Chiefs of Police. An employee who successfully completes the Leadership in Police Organizations Program shall be paid at a rate set approximately two and one half percent (2.5%) above their then current base monthly salary step. G. Homeland Security Executive Leaders Program. An employee who successfully completes the Homeland Security Executive Leaders Program shall be paid at a rate set approximately two and one-half percent (2.5%) above their then current base monthly salary step. H. Advanced Leadership Program. The advanced leadership courses listed below represent curriculum that exceed minimum training mandates for law enforcement 15 managers. The subject matter addresses a variety of critical topics associated with advanced organizational development and the role of leaders within the organization. All courses are applicable to sworn and civilian managers. An employee who successfully completes a cumulative total of one hundred twelve (112) hours of the below listed advanced leadership courses shall be paid at a rate set approximately two and one-half percent (2.5%) above their then current base monthly salary step. Leadership Courses Hours Command Institute for Law Enforcement Executives (F.B.I. — LEEDA) 40 Contemporary Leadership Issues (F.B.I. — LEEDA) 32 Executive Development Course (P.O.S.T.) 80 Management Civilian Seminar (Part I) (P.O.S.T.) 24 Management Civilian Seminar (Part II) P.O.S.T. 24 Organizational Leadership (P.O.S.T.) 40 Police Management Seminar Advanced (P.O.S.T.) 24 Supervisor Leadership Institute (F.B.I. — LEEDA) 40 POST Management Update 24 POST Supervisory Update 24 FBI-LEEDA Executive Survival 32 Role of the Police Chief 40 POST Supervisory/Leadership Update 24 Effective Executive Communication 24 Police Management Seminar Advanced 24 Civilian Management Seminar 40 Advanced Civilian Management 24 I. Additional Courses. Any other course, twenty-four (24) hours or longer, which focuses on developing leadership skills or increasing knowledge of contemporary law enforcement issues of a management/executive nature, or which enhances knowledge of community policing strategies or trends, shall be reviewed and approved by the Chief of Police after they ensure that the above criteria are met. 6.2 Educational Incentive Prog am: Effective July 1, 2019 for all members covered by this MOU, including Current PMA members, employees hired or promoted into the PMA unit on or after July 1, 2019, shall not be eligible for the Educational Incentives Program described in Section 6.1(A) through Section 6.1(I) (above) but shall instead be eligible for the Education Incentives listed in Sections 6.2(A) and 6.2(B). Employees who were previously receiving incentives in Section 6.1(A) through Section 6.1(1) that qualify for the provisions in this section on or after July 1, 2019, shall not be eligible for both, only the greater benefit of the two. 16 A. SWORN ONLY Sworn employees may qualify for the following education incentives; Supervisory POST Certificate - A sworn employee who successfully obtains their Supervisory POST certificate, shall be five percent (5%) above their then current base monthly salary step. 2. California Command College or FBI National Academy - A sworn employee who successfully completes the California Command College, FBI National Academy, or equivalent coursework that focuses on developing leadership skills or increasing knowledge of contemporary law enforcement issues of a management/executive nature and is approved by the Chief of Police, shall be paid five percent (5%) above their then current base monthly salary step. 3. Master's Dew - A sworn employee who attains their MA/MS Degree shall be paid five percent (5%) above their then current base monthly salary step. 4. The education incentives in this section shall not exceed fifteen percent (15%) B. NON -SWORN 1. A non -sworn employee who successfully attains a Masters of Art or Master of Science degree shall be paid at a rate set approximately five percent (5%) above their then current base monthly salary step (cap=5%). 17 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 Eli ig'bility. A. Application for tuition reimbursement will be considered only from full-time, regular 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 the 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 in the course plan to qualify for a degree that is directly related to his 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, community colleges, or adult education courses under the sponsorship of a Board of Education and certain non -collegiate training seminars approved by the Police Chief. Other 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 Police Department with prior approval of the Police Chief. 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. If, however, an employee is required by the Police Chief to attend a particular course or seminar, the expense shall be borne entirely by the Department. B. Costs for required textbooks are eligible for one hundred percent (100%) reimbursement subject to the following conditions: 1. That a duplicate of the required textbook(s) was unavailable for loan from the Department library prior to the commencement of coursework; and 2. That any textbook(s) purchased by the City shall be submitted to the employee's Departmental library in order that such textbook(s) may be made available to all employees. C. Tuition and registration costs are eligible for one hundred percent (100%) reimbursement up to a maximum total of two thousand dollars ($2,000) per fiscal year -(including non-P.O.S.T. reimbursable courses and approved non -collegiate seminar training courses). Reimbursement for non -collegiate seminar training courses require the prior approval of the Police Chief and shall be limited to two (2) such courses per year and a maximum of five hundred dollars ($500) per course. 7.4 Procedures. A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete an Application for Training and Educational Assistance form and submit it to the Police Chief. B. The Police Chief will recommend approval or disapproval and forward the application to the Human Resources Department. C. The Executive Director of Human Resources will approve or disapprove the application for the City. One (1) copy will be returned to the employee and a duplicate will be retained by the Human Resources Department. It is advisable that the applicant accomplish the procedure so far described prior to the inception of the course or disbursement of personal funds in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy. 19 D. The employee will submit their copy of the approved application to the Human Resources Department within three (3) months after they have completed the course and received their final grade with appropriate receipts for tuition and textbook costs. These will be returned to the employee upon request. Applications not submitted to the Human Resources Department within three (3) months following completion of the course become void. E. Upon receipt of the application and required documentation, the Executive Director of Human Resources will compute the amount of reimbursement, authenticate the application, and forward it to the Police Chief. F. The Police Chief will then authorize the Finance and Management Services Department to reimburse the employee the approved amount out of the budget of the Police Department. 20 ARTICLE VIII 8.0 OVERTIME 8.1 Compensation for Overtime. Employees in any of the designated classes of employment listed in this MOU are not eligible for monetary compensation for overtime work or for compensatory time off with pay for overtime work, unless so required by the Fair Labor Standards Act, or any other State or Federal laws. 21 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 1st -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 Presidents' Day o March 31St - In observance of Cesar Chavez Day o Last Monday in May - In commemoration of Memorial Day o July 4th - In observance of Independence Day o First (1") Monday of September -In observance of Labor Day o November 1 Ith - 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. Any holiday which falls on a Sunday will be observed on the following Monday. Any holiday which falls on a Saturday will be observed on the Friday preceding the holiday. 9.2 Full-time time permanent and probationary employees shall receive thirteen (13) working days off, eight (8) hours per day, during the calendar year in lieu of the holiday benefits specified in Section 9.1. Employees with alternative work schedules shall be credited with 22 one hundred four (104) hours of holiday time at the beginning of every calendar year in lieu of thirteen (13) holidays in the year. For purposes of computing holiday accruals, an eight (8) hour day shall be the basis for computation. 9.3 A 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. 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 9.1. 9.4 Holiday Bank Election. A. If an employee wants to use their holiday bank hours as described in Section 9.2 during the year in which the holiday leave time is accrued, but not necessarily used in the pay period in which the holiday occurs, they must make an irrevocable election by December 15th of the prior calendar year (i.e. by December 15, 2020 for the calendar year 2021 holidays). Employees completing an irrevocable election form will not be automatically cashed out as the holidays occur (if not taken off), and will retain those hours for use any time during the current calendar year earned. Forms will be turned into the Police Department Human Resources Department then forwarded to City Payroll. If an employee leaves employment during the year and has not used their earned holiday time, the eligible hours will be paid on their final check and will not be eligible to be reported to CAPERS as Special Compensation. B. Said substitute holidays may be taken at any time during the calendar year with prior permission of the employee's supervisor and subject to the operational needs of the Department. However, if an employee who separates from the service of the City has taken time off for holidays in advance of the date or day the holidays actually occur, they must pay the City the cash value for such used but unearned holiday time off benefits prior to or at the time of separation. C. Holiday time off may be taken in thirty (30) minute increments. 9.5 Holiday benefits may not be carried over from one (1) calendar year to the next. 9.6 Holiday Leave. 23 A. Members of the Association will receive holiday hours each year as set forth in Section 9.2 to be used as time off in the pay period in which the legal holiday occurs. Holiday hours (excluding the floating holiday) not used in the pay period in which the legal holiday falls will be automatically given holiday pay -in -lieu. B. Pay -in -lieu of time off will be based on the twelve (12) holidays observed by the City of Santa Ana. Pay -in -lieu will be computed at eight (8) hours each legal holiday at the regular rate of pay on a straight time basis. This additional compensation shall be reported to Ca1PERS as special compensation to the extent it qualifies under Title 2, California Code of Regulations, Sections 571 and 571.1 24 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 will be used as a guide in the administration of the provisions of this Article. 10.2 Vacation. A. Members shall accrue the combined vacation with pay on a monthly basis as set forth in the following table. Completed Years Annual Vacation Accrued Monthly Accrual Rate 1 120 10.00 2 120 10.00 3 120 10.00 4 120 10.00 5 120 10.00 6 124 10.33 7 128 10.67 8 132 11.00 9 136 11.33 10 140 11.67 11 144 12.00 12 148 12.33 13 152 12.67 14 156 13.00 15 160 13.33 16 168 14.00 17 176 14.67 18 184 15.33 19 192 16.00 20 or more 200 16.67 B. Vacation time off may be taken in increments as small as one (1) hour, with fractional usage rounded upward to the next higher multiple of one (1). 25 C. Computing Regular Vacation. 1. In computing vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the employee would have worked had they not been on vacation, shall be deducted from the computation so that one (1) additional day of vacation shall be allowed to the employee. Should an employee become sick while on authorized vacation, each full day of such illness, when confirmed by a physician's statement and approval of the Police Chief, 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 maximum vacation carryover as set forth in the following table. Any vacation not used beyond the maximum carryover amount from the current calendar year will be cashed out at the employee's base rate of pay by the City at the end of the current calendar year provided that the employee takes a minimum of eighty (80) hours of accrued vacation leave time off in that calendar year. 3. An employee who does not take a minimum of eighty (80) hours of vacation leave hours during the calendar year beyond the maximum carryover amount as described in Section 10.2(C)(2), will forfeit the hours beyond the maximum carry over amount from year to year, meaning that no pay shall be received for such unused vacation at any time. This provision constitutes a waiver of any rights to vested vacation benefits under California Labor Code section 227.3. Completed Years Max Carryover 1 120 2 240 3 240 4 240 5 240 6 244 7 252 8 260 9 268 10 276 11 284 12 292 13 300 26 14 308 15 316 16 328 17 344 18 360 19 376 20 392 21 22 400 400 23 400 24 400 25 400 4. Employees may or may not be allowed or required to accumulate or split vacations. The time at which an employee shall take their vacation shall be determined by seniority within rank, with due regard for the needs of the service. For purposes of computing vacation accruals, an eight (8) hour day shall be the basis for computation. D. Vacation Leave Cash Option. 1. Through December 31, 2025 a. Employees may receive cash compensation, computed on a straight - time basis, for up to a maximum of one hundred fifty (150) hours of earned, unused vacation leave benefits, subject to the limitation in Section 10.2(E). 2. Effective January 1, 2026 and continuing every year thereafter a. If an employee wants to cash -out unused vacation leave they accrued during the calendar year, they must make an irrevocable election by December 15th of the prior calendar year (i.e., by December 15, 2025 for a cash -out in calendar year 2026). The provisions of Section 10.2(D)(1)(a) shall also apply to management vacation leave. b. The irrevocable election must indicate the amount of vacation hours the employee intends to cash -out during the next calendar year. The number of hours to be cashed -out cannot exceed the total number of hours the employee will accrue during the same calendar year, or a maximum of one hundred fifty (150) hours, whichever is the lesser amount. C. Once the election form is submitted to Payroll, the amount of hours to be cashed out cannot be changed for that calendar year. d. Employees may submit a request for cash -out up to two (2) times per year for payment. 27 e. In the event an employee's vacation leave balance (on either pay period when they can elect to cash -out) is less than the amount of hours the employee had previously elected to cash -out (in the prior calendar year), the employee will only receive payment for the amount of accumulated vacation leave remaining at the time of the cash -out. f. If an employee makes an irrevocable election to cash -out vacation in the following calendar year and uses vacation leave during that subsequent calendar year, the vacation leave used will first come from vacation leave the employee had earned (if any) prior to January 1 st of the calendar year the employee had elected to cash -out. The use of such earned, but unused, vacation leave accumulated from previous calendar years shall not result in a reduction in the amount of vacation hours the employee is eligible to cash out. E. Employees may cash out a combination of vacation and management vacation leaves, up to a maximum of two hundred sixty (260) hours in a calendar year. 10.3 Management Vacation Benefit. All employees will be granted one hundred (100) hours of management vacation per calendar year over the vacation schedules. Employees may accrue a maximum of four hundred eighty (480) hours of such Management Vacation. Employees may receive cash compensation, computed on a straight time basis, up to a maximum of one hundred fifty (150) hours of earned, unused management vacation leave benefits, subject to the provisions in Sections 10.2(D) and 10.2(E). 10.4 Effect of Extended Sick Leave on Vacation Accrual. An employee that is absent on paid sick leave or unpaid leave for a period of time greater than fifteen (15) consecutive calendar days in any one (1) calendar month shall not accrue vacation credits during that month. W. ARTICLE XI 11.0 OTHER LEAVES OF ABSENCE 11.1 Sick Leave. A. Definition. Except as otherwise provided in this Article, sick leave shall be deemed to mean absence from duty of an employee for the purposes outlined under California Labor Code § 246.5, Article 11.1 (J), or as otherwise permitted by law. B. Accrual. Each employee shall earn eight (8) hours of sick leave for each full calendar month of service in which they are 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. Notwithstanding the foregoing, an employee on leave of absence for service -connected illness or injury who is covered by the provisions of Labor Code Section 4850, shall continue to accumulate eight (8) hours of sick leave for each full calendar month of service for which he or she is employed by the City with full pay during said absence for service -connected illness or injury. For purposes of computing sick leave accruals, an eight (8) hour day shall be the basis for computation. C. Authorized Only When Necessary. Sick leave shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Section 11.1(J). When an accepted industrial illness or injury has caused a non -sworn 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 recredited to their account. 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 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 29 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 thousand (2,000) hours. Sick leave usage of less than a full day shall be charged in minimum increments of one (1) hour, with fractional usage rounded upward to the next higher multiple of one (1). For employees who are hired on or after November 15, 2022, from outside the City into classifications represented by the Association: 1. The maximum accumulation of sick leave with pay shall be three hundred fifty- two (352) hours; and 2. Any annual accrual over the three hundred fifty-two (352) sick leave hours (up to ninety-six (96) hours) will be converted into an employee's Retirement Health Savings ("RHS") Plan account during the first full pay period in January of each year. E. Extended. The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of their accrued sick leave if a licensed physician indicates that the employee will be sufficiently recovered to return to his employment within a six (6) month period. Prior to the expiration of the additional time, the employee may return to his position provided that the employee has a certificate from a licensed physician stating that the employee is able to perform the essential functions of their classification with or without reasonable accommodation. 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 Vacation. After an employee's sick leave has been exhausted, they may be granted permission to take any earned vacation they may have accrued. G. Notice. The employee taking sick leave shall notify their immediate supervisor as established by the Police Department regulations. Sick leave shall only be used for the purposes outlined under California Labor Code § 246.5, Article 11.1 (J), or as otherwise permitted by law. If an employee uses sick leave for a purpose not permitted by this MOU or the law, it will be considered abuse of sick leave. If abuse of sick leave is suspected, a physician's certificate or other satisfactory written evidence may be requested. H. Denial. No employee shall be entitled to sick leave with pay while absent from duty 30 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. I. Excess Usage. If sick leave is used in excess of that due and available to an employee, such excess sick leave will, first, be deducted from any available vacation leave benefit; finally, deducted from the next scheduled salary payment. J. Personal Necessity Leave. Each employee shall be afforded the opportunity to use up to forty-eight (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, spouse, or registered domestic partner of the employee. As used in this section, a child means a biological, foster, or adopted child, a stepchild, a legal ward, or a child of a person standing in loco parentis; and a parent means a biological, foster, adoptive parent, a stepparent, or a legal guardian of an employee or the employee's spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child. This section also applies to the employee's grandparent, grandchild, or sibling. California's Healthy Workplaces/Healthy Families Act of 2014 (AB 1522) also known as California's Paid Sick Leave Law, required the City to provide paid sick leave to eligible employees upon oral or written request, within the parameters of the law, for the following purposes: • Diagnosis, care, or treatment of an existing health condition of, or preventative care for an employee or an employee's qualified family member; • Specified purposes for an employee who is a victim or domestic violence, sexual assault, or stalking. Up to five (5) 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 home or other valuable property; or (d) when the existence of external circumstances beyond the employee's control make it impractical for him or her to report for duty. 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. Payment criteria and limitations. Upon non -disciplinary termination of employment after ten (10) years of cumulative full-time service with the City, each qualified employee shall be 31 entitled to the following cash out provisions below: a. After ten (10) years, but less than fifteen (15) years of service, the employee shall be entitled to fifty percent (50%) of the amount of unused sick leave benefits credited to either 1) their RHS account, or 2) their individual 457 account, or 3) cash upon the effective date of separation, not to exceed a maximum limit of six hundred forty (640) hours. b. After fifteen (15) years, but less than twenty (20) years of service, the employee shall be entitled to fifty percent (50%) of unused sick leave benefits credited to either 1) their RHS account, or 2) their individual 457 account, or 3) cash upon the effective date of separation, not to exceed a maximum limit of eight hundred (800) hours. c. After twenty (20) years, but less than twenty-five (25) years of service, the employee shall be entitled to sixty-six and sixty-seven hundredths percent (66.67%) of unused sick leave benefits credited to either 1) their RHS account, or 2) their individual 457 account, or 3) cash upon the effective date of separation, not to exceed a maximum limit of one thousand sixty-seven (1,067) hours. d. After twenty-five (25) years of service or more, the employee shall be entitled to one hundred percent (100%) of the amount of unused sick leave benefits credited to either 1) their RHS account, or 2) their individual 457 account, or 3) cash upon the effective date of separation, not to exceed a maximum limit of two thousand (2,000) hours. 2. 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 two-thirds (2/3) of the total sick leave benefit credited to the employee's account at the time of their death, and at the rate of pay effective on the date of the death. 3. Association members who notify the City, in writing, of their intent to retire from the City within twelve (12) calendar months shall be allowed to cash out any and all eligible leave bank balances, including sick leave, upon request. Employees shall receive payment the first paycheck in January after the request has been made. If an employee cashes out their eligible leave bank balances prior to retirement and subsequently remains employed one (1) year after their initial notice of intent to retire, said employee shall be ineligible to accrue one hundred (100) hours of management vacation the next calendar year. 32 11.2 Bereavement Leave. An employee shall be granted up to three (3) days leave without loss of pay in case of death of a member of the employee's immediate family. For 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/her specific workday schedule. Such leave is designated as bereavement leave. "Immediate family" as used in this section is limited to: A. Any relative by blood or marriage who is a member of the employee's household; B. A parent, parent -in-law, spouse, child, brother, sister, grandparent, or grandchild of the employee, regardless of residence; C. Any other relative of the employee by blood or marriage where it can be established by the employee that as a result of such relative's death, the employee's presence is required. D. An employee may use up to two (2) additional work days of leave. An employee can choose to use any accrued leave for these additional two (2) days. 11.3 Military Leave. A. Proof of Orders and Reinstatements. An employee shall be granted military leave if they furnish the Executive Director of Human Resources satisfactory proof of their order to report for duty. Upon return and upon showing of proof of actual service pursuant to such orders, they will be reinstated as provided in Section 9-143 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) working days in each calendar year after one (1) years' 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 witness in any court action, they 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 the Police Chief for examination the subpoena calling them 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 will be granted leave with pay for the time actually required without loss of any accrued vacation time off benefits. 33 11.6 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. 11.7 Authorized Absence Without Pay - Short Term. Absence without pay, not to exceed five (5) consecutive working days, may be authorized by the Police Chief. Absence without pay, not to exceed fifteen (15) calendar days, may be authorized by the Department with the approval of the City Manager. Such an absence may be authorized only if, in the judgment of the Police Chief, 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 Police Chief 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 Police Chief and the Executive Director of Human Resources of their intention at least thirty (30) calendar days prior to the expiration of the six (6) months period or a shorter period of the full six (6) months if not taken. Upon receipt of such notice, the Police Chief will take steps necessary to restore the employee to their former position. 11.9 Industrial Leave. A. Each "safety member" employee covered by the provisions of Labor Code Section 4850 who is compelled to be absent from duty because of an illness or injury covered by the State of California Workers' Compensation Insurance and Safety Act shall, in lieu of temporary disability compensation payable under the aforementioned Act, continue to be paid his or her normal salary and accrue other benefits in accordance with the provisions of Labor Code Section 4850. B. Any period of time during which an employee is required to be absent from their position by reason of an industrial injury or industrial illness for which they are entitled to receive compensation shall not be considered a break in continuous service for the purpose of their right to salary adjustments or to the accrual of vacation, seniority, and any other benefits. 11.10 Administrative Leave Policy. The City Manager is authorized to grant, at their discretion, paid or unpaid administrative leave for employees. 11.11 Catastrophic Leave Donation. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of catastrophic non -industrial medical condition or injury, the City and Association agree to implement a Catastrophic Leave Donation procedure. 34 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 MOU 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 becoming eligible for Long Term Disability (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. Employees may donate vacation or compensatory time or one (1) in lieu holiday to the eligible employee. In no event shall sick leave be donated. Employees shall be provided a two (2) week period to submit donations. Donations received after this two (2) week period shall not be processed. The two (2) week period for each case shall be designated by the Police Chief or their designee as provided herein below. Donations shall be for a minimum of two (2) hours and a maximum of eight (8) hours per donor. All donations must be made in two (2) hour increments, except in lieu holidays must be for eight (8) hours. Any authorization of donations not made in accordance with the procedures outlined in Section 11.11(C) will not be processed. All donations shall be irrevocable. 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. B. Eli ig bility. Regular, full-time employees shall be eligible for Catastrophic Leave donations if the following criteria are met: When it is reasonably foreseeable that all accrued time on the books, such as sick leave, compensatory time, vacation, and in lieu holidays, will be exhausted and the employee's illness will continue past the time when the employee will be on paid status. 2. The Police Chief or their 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 35 employee's need for an extended medical leave and an estimate of the time the employee will be unable to work. C. Procedure. Upon receipt of a valid request for donations from an eligible employee, the Police Chief or their 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. Employees wishing to donate time to an eligible employee must sign their authorization of the transfer of such donated time and provide: 1. Their name, department name, and employee number. 2. The number of hours of compensatory or vacation time of the donation within the limitations of Section 11.11(A)(3). 3. The name, department, and employee number of the recipient. 4. A statement indicating that the donor understands such donation of time is irrevocable. 36 ARTICLE XII 12.0 EMPLOYEE INSURANCE 12.1 Health Insurance. The City shall contribute an allowance towards the employee's Cafeteria Benefit plan for health insurance premiums for affected employees and their dependents under The Public Employees' Medical & Hospital Care Act (PEMHCA) which governs the California Public Employees' Retirement System (CAPERS) Health Insurance Programs pursuant to the provisions below. A. Effective the first full pay period following City Council adoption of this MOU, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $1004.00 • Employee +1 $1,657.00 • Employee + Family $2,050.00 B. Effective January 1, 2026, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $1,054.00 • Employee +1 $1,807.00 • Employee + Family $2,200.00 C. Effective January 1, 2027, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $1,104.00 • Employee +1 $1,957.00 • Employee + Family $2,350.00 D. Effective January 1, 2028, the City will provide a monthly contribution to health insurance premiums at the following rates: • Employee Only $1,154.00 • Employee +1 $2,107.00 • Employee + Family $2,500.00 The above amounts are inclusive of the Ca1PERS statutory minimum amount which Ca1PERS determines and publishes each year. 37 E. Any contribution necessary to maintain benefits under any health insurance program provided by the City for its employees and their eligible dependents in excess of the amount of the City contribution to the Cafeteria Benefit Plan specified above shall be borne entirely by the employee. F. Cafeteria Benefit Plan. The City provides a Cafeteria Benefit Plan adopted in accordance with the provisions of Internal Revenue Code § 125 for employees covered by this MOU. 1. Employees will be eligible to receive through the Cafeteria Benefit Plan, the cash difference (subject to taxation as wages) if the monthly City allowance exceeds the monthly cost of the Medical and Dental monthly plan premium cost. 2. For each such employee who is covered under a group sponsored health plan, the City will pay the employee a cash -in -lieu payment (subject to taxation as wages) each month in an amount equal to the City contribution for the "employee -only" coverage for medical, if the employee waives, in writing, City -paid coverage. The above specified amount of City contribution towards such coverage waived will be applied to earned income. If an employee waives City provided coverage, said employee shall provide proof of medical insurance coverage in a group -sponsored health plan. Said waiver shall include a provision warning such employee that reentry into any of the City - sponsored plans is allowed only at open enrollment, unless there is a qualifying event, and may require proof of insurability for such employee and/or family. 12.2 Dental Insurance. The City agrees to contribute towards the cafeteria Benefit plan the payment of premiums for dental insurance plans provided by the City for employees and their eligible dependents on the following basis: A. One hundred percent (100%) of the premium cost for "employee -only" coverage. B. The City will contribute up to one hundred thirty dollars ($130) per month per employee for "family" coverage. Any contribution necessary to maintain benefits under said dental plans in excess of the amount of the City contribution to the cafeteria plan specified above shall be borne entirely by the employee. For each such employee who is covered under a group sponsored dental plan, the City will pay the employee a cash -in -lieu payment (subject to taxation as wages) each month in an amount equal to one -hundred percent (100%) of the City's contribution, if the employee W. waives, in writing, City -paid coverage. Such waiver shall include a provision warning such employee that reentry into any City -sponsored plan is allowed only at open enrollment, unless there is a qualifying event, and may require proof of insurability for such employee and/or family. 12.3 Disability Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost for a long term disability insurance plan (with a sixty (60) day elimination period) for employees. Employees shall receive a monthly benefit of sixty-six and two-thirds percent (66 2/3%) of their base monthly salary (to a maximum monthly benefit of ten thousand dollars ($10,000)). 12.4 Life Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost for term life insurance coverage under the policy it maintains on behalf of its officers and employees in order to provide employees with life insurance coverage in an amount equal to twice such employee's annual rate of salary to a maximum of three hundred thousand dollars ($300,000), provided said affected employees can provide evidence of insurability of coverage above one hundred fifty thousand dollars ($150,000) if so required by the terms and conditions of said term life insurance policy. In the event any such employee is determined to be ineligible for said insurance coverage, the City will attempt to provide as much coverage as may be obtained at reasonable cost without having to provide evidence of insurability. 12.5 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 MOU, provided that employees continue to receive equivalent benefits and provided that the parties have met and conferred before the changes have been made. 12.6 Medical Retirement Subsides. The City provides a Retirement Health Savings Plan ("RHS"). A. The City shall contribute four percent (4%) of base salary, plus pay additives each pay period into the individual accounts of Association members established with the City's plan administrator. 1. Employees shall continue to contribute one-half of one percent (.50%) of base salary, plus pay additives, each pay period into their individual RHS accounts established with the plan administrator. 39 2. In addition to the contributions referenced above, an Association member may contribute unused sick leave, vacation, and other benefits to the trust as defined by the plan guidelines. 3. The program is not intended to create any form of lifetime insurance subsidy, benefit or entitlement. B. For employees hired after November 15, 2022 from outside the City, the City shall contribute one percent (1 %) of base salary plus pay additives each pay period into the individual accounts of employees established with the City's plan administrator. Additionally, said employees shall contribute one and one -quarter percent (1.25%) of base salary, plus pay additives, each pay period into their individual RHS accounts established with the plan administrator. 12.7 Vision Insurance. The City shall maintain in effect its existing vision care plan for employees. This plan is voluntary on behalf of the employee and shall be fully funded by the participating employee. .O ARTICLE XIII 13.0 DEFERRED COMPENSATION 13.1 Effective January 1, 1977, employees covered by this MOU were granted a one percent (1 %) salary increase to be utilized toward deferred compensation. Effective July 1, 1991, to comply with CAPERS salary reporting requirements, salary rate ranges for employees were adjusted upward by one percent (1 %) to reflect the deferred compensation as salary. For salary reporting purposes, the deferred compensation was shown as part of salary, rather than as an add -on benefit. The amounts contributed by the City under this Article shall be subject to provisions as outlined in the Internal Revenue Code (IRC) section 457. Furthermore, all new contributions and existing assets are to be held for the exclusive benefit of the participants and beneficiaries. 41 ARTICLE XIV 14.0 RETIREMENT 14.1 General. The terms of the existing contract between the City and California Public Employees' Retirement System (CalPERS) governing the City retirement benefits of employees are incorporated by reference herein. The City shall continue to make contributions to CalPERS in accordance with its contract with CalPERS for employees covered by said contract as amended. 14.2 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 their individual employee retirement contribution. Such payments shall be credited to the individual employee's CalPERS account. Such payments are not increases in base salary and no salary rate ranges applicable to any employees 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. For the purpose of reporting an employee's compensation to CalPERS, the City shall include these payments as if they were part of the employee's base salary. 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 nine percent (9%) for "safety member" employees covered under the 3% at age 50 CalPERS formula and eight percent (8%) for all "miscellaneous member" employees covered under the 2.7% at age 55 CAPERS formula. 14.3 1959 Survivor's Benefit. The City shall provide CalPERS fourth level of 1959 Survivor's Benefits to all eligible employees. 14.4 Pre -Retirement Optional Settlement 2 Death Benefit. The City shall provide the Pre - Retirement Optional Settlement 2 Death Benefit to all employees. 14.5 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members. The City agrees to continue to provide Classic Miscellaneous employees who are defined as Classic Members under the California Public Employees' Pension Reform Act (PEPRA) of 2013 with the 2.7% at 55 Service Retirement benefit. Payment of 2.7% at 55 Service Retirement Benefit. Classic Miscellaneous employees covered by this MOU shall pay eight percent (8%) of CalPERS reportable compensation 42 toward the employer cost of the 2.7% at 55 enhanced retirement formula. This payment shall be implemented as cost -sharing pursuant to Government Code section 20516(f). Pre -Taxable Benefit. To the extent permitted by Ca1PERS and Internal Revenue Service regulations, this eight percent (8%) employee contribution shall be implemented through payroll deductions on a pre-tax basis. 2% at 62 Retirement Benefit for New Miscellaneous Members. The City agrees to provide Miscellaneous employees who are defined as New Members under PEPRA, with the 2% at 62 Service Retirement benefit. The California Public Employees' Pension Reform Act (PEPRA) went into effect on January 1, 2013. The parties agree that if there is any other clean up or other retirement legislation which goes into effect during this MOU and if there are provisions of that legislation which, by law, automatically goes into effect, either party may request to negotiate over the legislation, including over the impact. Final compensation for New Miscellaneous Members will be based on the highest annual average compensation earnable during a period of at least thirty-six (36) consecutive months preceding the effective date of his or her retirement per Government Code Section 7522.32. Effective July 1, 2013, employees covered under the 2% at 62 retirement formula for Miscellaneous shall pay one half of the normal cost rate, as established by Ca1PERS. 14.6 3% at 50 Service Retirement Benefit for Classic Safety Members. The City agrees to continue to provide Classic Safety employees who are defined as Classic Members under the California Public Employees' Pension Reform Act (PEPRA) with the 3% at 50 Service Retirement benefit. Payment of 3% at 50 Service Retirement Benefit. Classic Safety employees covered by this MOU shall pay twelve percent (12%) of CAPERS reportable compensation toward the employer cost of the 3% at 50 enhanced retirement formula. This payment shall be implemented as cost -sharing pursuant to Government Code Section 20516(f). Pre -Taxable Benefit. To the extent permitted by CAPERS and Internal Revenue Service regulations this twelve -percent (12%) employee contribution shall be implemented through payroll deduction on a pre-tax basis. 2.7% (cry 57 Retirement Benefit for New Safety Members. The City agrees to provide Safety employees covered by this MOU who are defined as New Members under PEPRA with the 2.7% @ 57 Service Retirement benefit. The California Public Employee's Pension Reform Act (PEPRA) went into effect on January 43 1, 2013. The parties agree that if there is any other clean up or other retirement legislation which goes into effect during this MOU and if there are provisions of that legislation which, by law, automatically goes into effect, either party may request to negotiate over the legislation, including over the impact. Final compensation for New Safety Members will be based on the highest annual average compensation earnable during a period of at least thirty-six (36) consecutive months preceding the effective date of his or her retirement per Government Code Section 7522.32. Effective July 1, 2013, employees covered under the 2.7% @ 57 retirement formula for Safety shall pay one half of the normal cost rate, as established by CAPERS. 14.7 Military Service Credit as Public Service. "Safety" employees and "miscellaneous" employees 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 per Government Code Section 21024. 14.8 Credit for Unused Sick Leave. All sworn and non -sworn employees can have unused accumulated sick leave at the time of retirement converted to additional service credit at the rate of four thousandths (0.004) years of service credit for each day, eight (8) hours per day, of unused sick leave (i.e., two hundred (200) days of sick leave equals eight tenths (.8) additional years of service credit), pursuant to regulations prescribed by Ca1PERS. The maximum total unused sick leave that can be converted shall be two -hundred fifty days (250) eight (8) hours working days equal to two thousand (2000) hours. Any accumulated sick leave in excess of two thousand (2000) hours shall be forfeited. The City must report only those hours 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 or one hundred twenty (120) days of separation from employment. (Government Code Section 20965) The maximum total unused sick leave that can be converted shall be ten (10) eight (8) hour working days equal to eighty (80) hours. Employees hired on or after a contract amendment between the City and Ca1PERS shall not be eligible to convert unused sick leave to Ca1PERS for service credit. ARTICLE XV 15.0 TECHNOLOGY STIPEND 15.1 The City shall provide a one hundred dollar ($100) per month Electronic Device Stipend ("Stipend") for those Association employees whose positions require the regular use of a cell phone and/or tablet and who choose to use their own personal devices for business -related conversations and activities. These employees may be eligible to receive a Stipend to compensate for business -related costs incurred while using their individually -owned electronic devices. Eligibility for the stipend requires the employee to return to the City any City issued electronic device(s) for which the employee will be substituting their personal device. 45 ARTICLE XVI 16.0 EXPANDED RESIDENCY 16.1 The City shall continue to permit employees to reside outside the limits of Orange County, so long as such residency is not an unreasonable distance nor requires an unreasonable response time to the particular employee's place of employment. Any affected employee who desires to take advantage of the opportunity to reside outside of Orange County shall first request permission to do so from the Police Chief. Said request shall be granted by the Police Chief if it is determined that the intended residence is not an unreasonable distance nor requires an unreasonable response time to the employee's place of employment. Should the Police Chief refuse any such request, the employee shall have the right to appeal said determination to the City Manager for reconsideration. .e ARTICLE XVII 17.0 CONTROLLED PARKING AND TAKE HOME VEHICLE PRIVILEGES 17.1 Parking. The City shall provide non -sworn employees with free parking for personal vehicles during on -duty hours in controlled parking facilities in the Civic Center area. 17.2 Take Home Vehicle. All employees in the classifications of Police Captain and Police Lieutenant shall receive a City -owned and maintained vehicle for traveling between the employee's residence and the Police Department or other business -related location, as necessary in the performance of their duties. 47 ARTICLE XVIII 18.0 DISCIPLINE 18.1 Pre -Disciplinary Procedure. If an employee is to be suspended without pay, receive a reduction in pay, transferred for purposes of discipline, demoted, or discharged, the employee shall: A. Receive written notice of the intended action at least ten (10) calendar days before the date it is intended to become effective, stating the specific grounds and the particular facts upon which the intended action is based. B. Receive copies of any known materials, reports, transcripts, statements, or other documents upon which the intended action is based. C. Be accorded the right to respond to the intended charges in writing or in person with the Chief of Police or designee within a reasonable period of time, not to exceed ten (10) calendar days unless the Chief of Police or designee authorizes a longer time. D. Be given the written decision of the Chief of Police or designee prior to the effective date of the disciplinary action. 18.2 DisciplinM Appeals Procedure. The following appeals procedures are adopted by the parties pursuant to Government Code section 3304.5 of the Public Safety Officers' Procedural Bill of Rights Act. A. Punitive Action — The term "punitive action" means any action defined by Government Code section 3303, i.e., "any action that may lead to dismissal, demotion, suspension, reduction in salary, written reprimand, or transfer for purposes of punishment." B. Formal Appeals Procedures — For Punitive Action not Covered by the Informal Hearing Process 1. Step 1. a. If an employee desires to appeal a disciplinary action not covered by the informal process, they (or their representative) shall submit a written notice of appeal to the Executive Director of Human Resources or designee within ten (10) calendar days of receiving the written decision from the Chief of Police. M. b. The City Manager or designee shall meet with the employee within twenty-one (21) days after submission of the appeal. The City Manager or designee may affirm, reverse, or modify the disciplinary action. The City Manager or designee shall deliver the written response to the employee within ten (10) calendar days after meeting with the employee. 2. Step 2. a. Filing the appeal: If an employee is not satisfied with the City Manager or designee's decision, they (or their representative) shall submit a written notice of appeal to be submitted to an impartial arbitrator for a final and binding decision. Such written notice of appeal shall be submitted in writing to the Executive Director of Human Resources or designee. b. The City and Association shall create and maintain a standing list of three (3) to five (5) mutually approved arbitrators. The City and Association shall select an arbitrator from the standing list via the striking method. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. d. If none of the identified arbitrators are able to take the case, then the parties will request a list of seven (7) arbitrators from the State Mediation and Conciliation Services. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. Hearing Process: During the hearing, the formal rules of evidence do not apply. The cost of the arbitrations, including but not limited to the list of arbitrators, the arbitrator themselves, and the court reporter shall be split evenly between the City and Association. The arbitrator's decision will be final and binding. The arbitrator shall issue their decision within thirty (30) calendar days from the conclusion of the hearing, unless the parties agree otherwise. 18.3 Informal Appeals Procedure. A. Informal Appeals Procedure, as opposed to the formal procedures, shall be used for written reprimands. The appeal is an opportunity for the employee (or their representative) to present information and arguments why a written reprimand should not occur or offer alternatives to the action. 2. Notice of Appeal: Within ten (10) calendar days of receipt by an employee of the written reprimand, the employee (or their representative) shall notify the Executive Director of Human Resources or designee in writing that they intend to appeal the written reprimand. The Executive Director of Human Resources or designee shall contact either the employee or their identified representative within ten (10) calendar days of receipt of the notice of appeal to schedule the appeal. 3. Hearing Officer: The Chief of Police or City Manager or designee (depending on who issued the written reprimand as determined by the Executive Director of Human Resources or designee) shall act as the hearing officer. The meeting shall take place within twenty-one (21) calendar days of the date the employee filed the appeal or such other time as may be agreeable by the parties. 4. Decision: After the meeting, a decision will be submitted in writing within thirty (30) calendar days and provided to the employee. The decision is final and binding. The decision shall advise the employee that the time within which judicial review of the decision may be sought as governed by Code of Civil Procedures section 1094.5. 18.4 Performance evaluations shall not be subject to appeal. 50 ARTICLE XIX 19.0 GRIEVANCE REVIEW PROCEDURE 19.1 Definition of a Grievance. A grievance shall be defined as a timely complaint by the Association concerning the interpretation or application of specific provisions of this MOU. The parties can mutually agree to extend any deadlines in this Article. 19.2 Step 1. A. The Association shall first attempt to resolve the grievance at Step 1 with the Executive Director of Human Resources or designee without undue delay, but in no case, beyond a period of ten (10) calendar 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 given rise to the grievance. B. The Executive Director of Human Resources or designee will respond to the grievance within fourteen (14) calendar days of receiving the grievance. C. Every effort shall be made to find an acceptable solution to the grievance at Step 1. 19.3 Step 2. A. If the Association is not satisfied with the response from the Executive Director of Human Resources or designee, the Association must submit the grievance in writing to Step 2 (binding arbitration) to the Executive Director of Human Resources or designee within ten (10) calendar days of receiving the Step 1 response. Should the grievant fail to file a written grievance at Step 2 within ten (10) calendar days after receiving the response at Step 1, the grievance shall be barred and waived. B. The City and Association agree to select an arbitrator in the following manner: 1. The City and Association shall refer to the mutually -approved standing list of arbitrators as specified in Section 192(B)(2)(b). 2. The City and Association shall select an arbitrator from the standing list via the striking method. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. 3. If none of the identified arbitrators are able to take the case, then the parties 51 will request a list of seven (7) arbitrators from the State Mediation and Conciliation Services. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. B. Hearing Process: During the hearing, the formal rules of evidence do not apply. The cost of the arbitration including but not limited to the list of arbitrators, the arbitrator themselves, and the court reporter shall be split evenly between the City and Association. The arbitrator's decision shall be final and binding. The arbitrator shall issue their decision within thirty (30) calendar days from the conclusion of the hearing, unless the parties agree otherwise. 19.4 Alleged violations of City Rules, Regulations, and Policies. A. If an employee, group of employees, or the Association (grievant) believes there has been a violation or misapplication of a City rule, regulation, or policy, the grievant may file a grievance within ten (10) calendar days of the alleged violation or misapplication or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance. B. Step 1. A grievant must submit a grievance in writing to the Executive Director of Human Resources or designee. 2. The Chief of Police shall meet with the employee within ten (10) calendar days after submission of the grievance. 3. The Chief of Police shall deliver the Step 1 written response to the employee within ten (10) calendar days after meeting with the employee. C. Step 2. If the grievant is not satisfied with the Step 1 response, the grievant must submit the grievance in writing to Step 2 to the Executive Director of Human Resources or designee within ten (10) calendar days of receiving the Step 1 response. 2. The City Manager or designee shall meet with the employee within twenty- one (21) days after submission of the Step 2 grievance. The City Manager or 52 designee may affirm, reverse, or modify the decision made at Step 1. 3. The City Manager or designee shall deliver the Step 2 written response to the employee within ten (10) calendar days after meeting with the employee. C. Step 3. If the grievant is not satisfied with the Step 2 response, the grievant must submit the grievance in writing to Step 3 (binding arbitration) to the Executive Director of Human Resources or designee within ten (10) calendar days of receiving the Step 2 response. Should the grievant fail to file a written grievance at Step 3 within ten (10) calendar days after receiving the response at Step 2, the grievance shall be barred and waived. 2. The City and Association agree to select an arbitrator in the following manner: a. The City and Association shall refer to the mutually -approved standing list of arbitrators as specified in Section 19.2(13)(2)(b). b. The City and Association shall select an arbitrator via the striking method. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. If none of the identified arbitrators are able to take the case, then the parties will request a list of seven (7) arbitrators from the State Mediation and Conciliation Services. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. 3. Hearing Process: During the hearing, the formal rules of evidence do not apply. The cost of the arbitration including but not limited to the list of arbitrators, the arbitrator themselves, and the court reporter shall be split evenly between the City and Association. The arbitrator's decision shall be final and binding. The arbitrator shall issue their decision within thirty (30) calendar days from the conclusion of the hearing, unless the parties agree otherwise. 53 ARTICLE XX 20.0 DUES DEDUCTION AND INDEMNIFICATION 20.1 Dues Deduction. The City shall deduct dues, on a regular basis, from the pay of all employees recognized to be represented by the Association, 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 Association within thirty (30) days following their deduction. 20.2 Indemnification. The Association agrees to hold the City harmless and indemnify the City against any claims, causes of action, or lawsuits instituted by a member or members of the Association arising out of the deductions or transmittal of such funds to the Association, except the intentional failure of the City to transmit, to the Association, monies deducted from the employees pursuant to this Article. 54 ARTICLE XXI 21.0 CITY RIGHTS 21.1 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 MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of Management, as they are not abridged by this MOU 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 non-existence 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 contract for or subcontract any work or operation of the City. I. 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 nondisciplinary reason, subject to the provisions of the City Charter, Municipal Code, Federal and State law and this MOU. K. To establish and modify productivity and performance programs and standards. 55 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 nondisciplinary reasons in accordance with this MOU. O. To determine policies, procedures, and standards including, but not limited to, quality and quantity standards and to require compliance therewith. 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 MOU. S. To take any and all necessary action to carry out the mission of the City in emergencies. 21.2 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 Association 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 MOU. 21.3 Lam. During the term of this MOU, the City agrees to meet and confer regarding both the decision and the impact of layoffs to the ranks of Police Lieutenant or Police Captain, respectively. 21.4 Transfer of Bargaining Unit Work. As required by the Meyers-Milias-Brown Act, the City agrees to meet and confer prior to the implementation of said transfer as follows: A. Transfer of bargaining unit work from an Association classification to a class not represented by the Association; or B. Transfer of work from a classification outside the Association to a classification represented by the Association. 56 ARTICLE XXII 22.0 STRIKES AND WORK STOPPAGES 22.1 Prohibited Conduct. A. The Association, its officers, agents, representatives, and/or members agree that during the term of this MOU, they will not cause or condone any unlawful strike, workout, 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 Section 22.1(A) shall be subject to suspension, demotion, or dismissal by the appointing authority. 22.2 Association Responsibility. In the event that the Association, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 22.1, the Association shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and unlawful, and they must immediately cease engaging in the conduct prohibited and return to work. 57 ARTICLE XXIII 23.0 SOLE AND ENTIRE AGREEMENT 23.1 It is the intent of the parties hereto that the provisions of this MOU 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 and written, expressed 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 MOU is not intended to conflict with Federal or State law or the City Charter. 23.2 The City will continue to administer its employee relations and its personnel policies and procedures in accordance with duly adopted ordinances and resolutions, and the affected employees will continue to be governed thereby during the term of this MOU. ARTICLE XXIV 24.0 WAIVER OF BARGAINING DURING THE TERM OF MOU 24.1 During the term of this MOU, the parties mutually agree that they will not seek to negotiate or bargain with regard to wages, hours, and terms of conditions of employment, whether or not covered by this MOU or in the negotiations leading thereto, unless required by specific provision of this MOU, 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 MOU. 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 MOU. 59 ARTICLE XXV 25.0 SEVERABILITY PROVISION 25.1 Should any provision of this MOU be found to be inoperative, void, or invalid by a court of competent jurisdiction or by statue, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU, 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. ARTICLE XXVI 26.0 TERM OF MOU 26.1 The term of this MOU shall be from July 1, 2025 through June 30, 2028. 61 ARTICLE XXVII 27.0 RATIFICATION AND EXECUTION 27.1 The City and the 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 the City 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 MOU 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 MOU is hereby executed by the authorized representatives of the City and the Association and entered into this 2nd day of December, 2025. Dated: Dated: Dated: !j a5 ATTEST: CLERK OF THE COUNCIL APPROVED AS TO FORM: rpu f PETER ..i LABOR ORNEY CITY OF SANTA ANA, a Municipal Corporation of the State of California By: MAYOR By: CITY MANAGER By: EXECUTIVE DIRECTOR OF HUMAN RESOURCES 62 This 2025-2028 SAPMA Memorandum of Understanding has been ratified by the membership of the Santa Ana Police Management Association. Dated:_11/17/2025 By: PRESIDENT, SANTA ANA POLICE MANAGEMENT ASSOCIATION 63 SANTA ANA POLICE MANAGEMENT ASSOCIATION SWORN CLASSIFICATIONS EXHIBIT A MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 13, 2025 TO JULY 11, 2026 JOB TITLE JOB CODE STEP A STEP B STEP C STEP D STEP E Police Captain (RM) 03360 19,029 19,980 20,979 22,028 23,131 Police Lieutenant (RM) 03350 16,262 17,076 17,930 18,825 19,766 MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 12, 2026 TO JULY 10, 2027 JOB TITLE JOB CODE STEP A STEP B STEP C STEP D STEP E Police Captain (RM) 03360 19,790 20,779 21,818 22,909 24,056 Police Lieutenant (RM) 03350 16,912 17,759 18,647 19,578 20,557 MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 11, 2027 JOB TITLE JOB CODE STEP A STEP B STEP C STEP D STEP E Police Captain (RM) 03360 20,384 21,402 22,473 23,596 24,778 Police Lieutenant (RM) 03350 17,419 18,292 19,206 20,165 21,174 M.' SANTA ANA POLICE MANAGEMENT ASSOCIATION NON -SWORN CLASSIFICATIONS EXHIBIT A MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 13, 2025 TO JULY 11, 2026 JOB TITLE JOB CODE STEP AA STEP A STEP B STEP C STEP D STEP E Correctional Manager (RM) 01971 10,259 10,772 11,311 11,876 12,470 13,092 Jail Administrator (RM) 03231 15,915 16,712 17,548 18,424 19,346 20,312 Police Administrative Budget Manager (RM) 00181 13,355 14,025 14,725 15,461 16,235 17,048 Police Administrative Manager (RM) 00180 11,933 12,533 13,158 13,815 14,506 15,230 Police Communications Manager (RM) 03370 11,099 11,653 12,236 12,848 13,489 14,163 Police Systems Manager (RM) 02931 13,355 14,025 14,725 15,461 16,235 17,048 MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 12, 2026 TO JULY 10, 2027 JOB TITLE JOB CODE STEP AA STEP A STEP B STEP C STEP D STEP E Correctional Manager (RM) 01971 10,669 11,203 11,763 12,351 12,969 13,616 Jail Administrator (RM) 03231 16,552 17,380 18,250 19,161 20,120 21,124 Police Administrative Budget Manager (RM) 00181 13,889 14,586 15,314 16,079 16,884 17,730 Police Administrative Manager (RM) 00180 12,410 13,034 13,684 14,368 15,086 15,839 Police Communications Manager (RM) 03370 11,543 12,119 12,725 13,362 14,029 14,730 Police Systems Manager (RM) 02931 13,889 14,586 15,314 16,079 16,884 17,730 MONTHLY WAGE RATE SCHEDULE EFFECTIVE JULY 11, 2027 JOB TITLE JOB CODE STEP AA STEP A STEP B STEP C STEP D STEP E Correctional Manager (RM) 01971 10,989 11,539 12,116 12,722 13,358 14,024 Jail Administrator (RM) 03231 17,049 17,901 18,798 19,736 20,724 21,758 Police Administrative Budget Manager (RM) 00181 14,306 15,024 15,773 16,561 17,391 18,262 Police Administrative Manager (RM) 00180 12,782 13,425 14,095 14,799 15,539 16,314 Police Communications Manager (RM) 03370 11,889 12,483 13,107 13,763 14,450 15,172 Police Systems Manager (RM) 02931 14,306 15,024 15,773 16,561 17,391 18,262 65