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HomeMy WebLinkAbout08-28-2019 Steering Committee Agenda Packet.pdf Orange County Sanitation District Wednesday, August 28, 2019 Regular Meeting of the `� """�'�N 5:00 P.M. STEERING COMMITTEE _ Administration Building Conference Room A • 10844 Ellis Avenue Fountain Valley, CA 92708 Fit/Ne THE ENV\P�� (714) 593-7433 AGENDA CALL TO ORDER DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker's Form (located at the table at the back of the room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. REPORTS: The Committee Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the Regular Meeting of the Steering Committee held July 24, 2019. 2. AMENDMENT TO BIG CANYON COUNTRY CLUB EASEMENT (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Approve the Amendment to Easement between Orange County Sanitation District and Big Canyon Country Club to adjust the Orange County Sanitation District's easement to correspond with the new sewer location within the Big Canyon Country Club in the City of Newport Beach. 08/28/2019 Steering Committee Meeting Agenda Page 1 of 5 NON-CONSENT ITEMS: 3. SETTLEMENT AGREEMENT WITH ASEPTIC TECHNOLOGY, LLC (Lan Wiborg) RECOMMENDATION: Recommend to the Board of Directors to: Authorize the General Manager to execute a Settlement Agreement to settle industrial wastewater discharge enforcement matters with Aseptic Technology, LLC, a facility that discharged without a valid Orange County Sanitation District permit, for $185,000 plus applicable fees and interest, in a form approved by General Counsel. 4. GENERAL MANAGER'S FISCAL YEAR 2019-20 DRAFT WORK PLAN (Jim Herberg) RECOMMENDATION: Recommend to the Board of Directors to: Receive and File the General Manager's Fiscal Year 2019-2020 Draft Work Plan. 5. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE SUPERVISOR & PROFESSIONAL GROUPS (Laura Kalty) RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 19-08, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the two (2) Supervisory and Professional Management Group bargaining units. 6. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE ORANGE COUNTY EMPLOYEES ASSOCIATION (Laura Kalty) RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 19-09, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) Orange County Employees Association bargaining units. 08/28/2019 Steering Committee Meeting Agenda Page 2 of 5 7. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS — LOCAL 501 (Laura Kalty) RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 19-10, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Local 501, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOU) between Orange County Sanitation District and the Local 501 bargaining unit. 8. ELIMINATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) AND NET PENSION LIABILITY (NPL) WITHIN THE ORANGE COUNTY EMPLOYEES' RETIREMENT SYSTEM (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Direct staff to pay off the following amounts in the Orange County Sanitation District's defined pension plan administered by the Orange County Employees' Retirement System (OCERS) in an amount not to exceed $38 million: • Unfunded Actuarial Accrued Liability (UAAL) in the amount of $9 million for pension benefits • Net Pension Liability (NPL) in the amount of $29 million for deferred investment loss INFORMATION ITEMS: None. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations,pending or potential litigation, or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. 08/28/2019 Steering Committee Meeting Agenda Page 3 of 5 (1) CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2)) Number of Potential Cases: 1 Significant exposure to litigation: Claim of Jose Cruz (2) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: General Manager James Herberg, Assistant General Manager Lorenzo Tyner, and Director of Human Resources Celia Chandler. Unrepresented Employees: Confidential Group: Assistant Clerk of the Board; Clerk of the Board; Human Resources Analyst; Human Resources Assistant; Human Resources Supervisor; Principal HR Analyst; Secretary to the General Manager; and Senior Human Resources Analyst. (3) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: General Manager James Herberg, Assistant General Manager Lorenzo Tyner and Director of Human Resources Celia Chandler. Unrepresented Employees: Managers Group: Administration Manager; Controller; Engineering Manager; Environmental Laboratory & Ocean Monitoring Manager; Human Resources & Risk Manager; IT Systems & Operations Manager; Maintenance Manager; Operations Manager; and Purchasing and Contracts Manager. (4) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representative: General Manager James Herberg, Assistant General Manager Lorenzo Tyner and Director of Human Resources Celia Chandler. Unrepresented Employees: Executive Managers Group: Assistant General Manager; Director of Engineering; Director of Environmental Services; and Director of Human Resources. RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: 08/28/2019 Steering Committee Meeting Agenda Page 4 of 5 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. ADJOURNMENT: To the Steering Committee meeting scheduled for Wednesday, September 25, 2019 at 5:00 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California,and on the Sanitation District's website at www.ocsd.com not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore, MMC Clerk of the Board (714)593-7433 kloreCcDocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 jherbergC@ocsd.com Assistant General Manager Lorenzo Tyner (714)593-7550 Ityner(o-)ocsd.com Assistant General Manager Rob Thompson (714)593-7310 rthompson(cDocsd.com Director of Human Resources Celia Chandler (714)593-7202 cchandler(o-)ocsd.com Director of Engineering Kathy Millea (714)593-7365 kmilleaCcDocsd.com Director of Environmental Services Lan Wibor 714 593-7450 lwiborg@ocsd.com 08/28/2019 Steering Committee Meeting Agenda Page 5 of 5 ITEM NO. 1 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, July 24, 2019 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman David Shawver on Wednesday, July 24, 2019 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: David Shawver, Board Chair Jim Herberg, General Manager John Withers, Board Vice-Chair Rob Thompson, Assistant General Robert Collacott, Operations Committee Manager Chair Lorenzo Tyner, Assistant General Peter Kim, LaPA Committee Chair Manager Chad Wanke, Administration Committee Celia Chandler, Director of Human Chair Resources Glenn Parker, Member-At-Large Kathy Millea, Director of Engineering Tim Shaw, Member-At-Large Lan Wiborg, Director of Environmental Services COMMITTEE MEMBERS ABSENT: Kelly Lore, Clerk of the Board None. Stephanie Barron Megan Carlson Thys DeVries Mike Dorman Dean Fisher Tom Grant Chris Johnson Lori Klinger Tina Knapp Rebecca Long Laura Maravilla Joshua Martinez Andrew Nau Adam Nazaroff Wally Ritchie Ruth Zintzun OTHERS PRESENT: Brad Hogin, General Counsel Laura Kalty, Liebert Cassidy Whitmore, Special Counsel 07/24/2019 Steering Committee Minutes Page 1 of 5 PUBLIC COMMENTS: Clerk of the Board Kelly Lore stated that correspondence had been received from the General Manager which was distributed to the Board of Directors. REPORTS: Chair Shawver did not provide a report. General Manager Jim Herberg did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Special Meeting of the Steering Committee held June 26, 2019. AYES: Collacott, Kim, Parker, Shaw, Shawver, and Wanke NOES: None ABSTENTIONS: None ABSENT: Withers Board Vice-Chair Withers arrived at the meeting at 5:02 p.m. NON-CONSENT ITEMS: General Counsel Brad Hogin stated a recusal on Item Nos. 2 and 3 due to a conflict of interest with the County of Orange and left the room during the discussion. 2. RIGHT OF ENTRY AGREEMENT (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner provided a brief overview of the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Right of Entry Agreement for Orange County Transportation Authority, and its authorized agents, to enter upon Orange County Sanitation District's property located on the north side of Westminster Boulevard, East of Springdale Street, in Westminster, CA adjacent to the Interstate 405 Freeway for temporary use in connection with its project to widen the Interstate 405 Freeway for a term of four (4) years from the 30-day notice prior to the beginning of construction, in a form approved by Special Counsel; and B. Direct the Clerk of the Board to record the Agreement with the Orange County Clerk-Recorder. 09/28/2016 Steering Committee Minutes Page 2 of 5 AYES: Collacott, Kim, Parker, Shaw, Shawver, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: None 3. FIRST AMENDMENT TO 800 MHZ LEASE (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner provided a brief overview of the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the First Amendment to the 800 MHz Lease Agreement with the County of Orange with the following modifications, in a form approved by Special Counsel: • Term of Lease shall expire May 4, 2023; with an optional one (1) additional five-year period • Increase the annual lease rate from $0.42 per square foot to $0.52 per square foot • Decrease the site footprint from 10,000 square feet to 4,784 square feet before December 31, 2019. AYES: Collacott, Kim, Parker, Shaw, Shawver, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: None 4. COOPERATIVE AGREEMENT FOR INTEGRATED REGIONAL WATER MANAGEMENT FUNDING IN THE SANTA ANA FUNDING AREA (Lan Wiborg) Director of Environmental Services Lan Wiborg provided a brief overview of the history of the item and its purpose. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a Cooperative Agreement among the County of Orange, Orange County Sanitation District, Orange County Water District (collectively referred to as Orange County Parties), and the Santa Ana Watershed Project Authority (SAWPA), a joint powers authority, for the Orange County Parties agreeing to remain a part of the Santa Ana Funding Area covered by the One Water One Watershed Plan for a period of ten (10) years, from date of execution. AYES: Collacott, Kim, Parker, Shaw, Shawver, Wanke and Withers NOES: None 07/24/2019 Steering Committee Minutes Page 3 of 5 ABSTENTIONS: None ABSENT: None 5. STRATEGIC PLAN SURVEY RESULTS (Rob Thompson) Assistant General Manager Rob Thompson provided a brief overview of the item noting that there were eight responses from the Board of Directors which were provided to the Committee. He stated that staff will proceed with creating position papers and will bring those to the Board of Directors meetings in August and September, with a Special Strategic Plan Workshop in September as well. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the strategic plan survey results from the Board of Directors in June 2019. AYES: Collacott, Kim, Parker, Shaw, Shawver, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: None INFORMATION ITEMS: 6. UPDATE ON THE HEADQUARTERS COMPLEX AND SITE SECURITY AT PLANT NO. 1, PROJECT NO. P1-128 (Kathy Millea) Ms. Millea presented a brief update on the recently submitted design package, with renderings, project budget, and the project schedule. She stated that staff is working closely to accelerate the proposed schedule. The committee expressed concerns regarding maintenance of the building, security of the Boardroom with the exposed glass window, and traffic control during construction. CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957(b)(1), 54957.6 & 54956.9(d)(4): The Board convened in closed session at 5:21 p.m. to discuss three items. Confidential minutes of the Closed Sessions have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:01 p.m. 07/24/2019 Steering Committee Minutes Page 4 of 5 CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Shawver declared the meeting adjourned at 6:02 p.m. to the next Steering Committee meeting to be held on Wednesday, August 28, 2019 at 5:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board 07/24/2019 Steering Committee Minutes Page 5 of 5 STEERING COMMITTEE Meeting Date To Bd. of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: AMENDMENT TO BIG CANYON COUNTRY CLUB EASEMENT GENERAL MANAGER'S RECOMMENDATION Approve the Amendment to Easement between Orange County Sanitation District and Big Canyon Country Club to adjust the Orange County Sanitation District's easement to correspond with the new sewer location within the Big Canyon Country Club in the City of Newport Beach. BACKGROUND Orange County Sanitation District (Sanitation District) owns, operates, and maintains a trunk sewer that is rooted, in part, through the Big Canyon Country Club. Big Canyon Country Club planned to expand its maintenance facility and construct a larger maintenance building. The expansion placed the new building directly over the Sanitation District's trunk sewer and easement, rendering the facilities inaccessible. Through a sewer relocation agreement, Big Canyon Country Club designed and constructed a new sewer to Sanitation District's standards, relocating the sewer away from the new maintenance building. Big Canyon Country Club abandoned the existing sewer and granted a new sewer easement to correspond with the new sewer location, at no cost to the Sanitation District. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Protect Orange County Sanitation District assets • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM The Sanitation District requires property rights in the form of an easement in order to access, operate, and maintain its newly relocated facilities. PROPOSED SOLUTION Approve the Amendment to Easement which provides property rights that correspond to the new sewer location. Page 1 of 2 TIMING CONCERNS The relocation of the sewer has been completed and the Sanitation District plans to initiate its preventative maintenance program on the newly relocated sewer. RAMIFICATIONS OF NOT TAKING ACTION Without the Amendment to Easement, the Sanitation District would not have adequate property rights to access, operate, and maintain its facilities in this location. PRIOR COMMITTEE/BOARD ACTIONS April 2017 - Approved Sewer Relocation Agreement with Big Canyon Country Club. ATTACHMENT The following attachment(s) is included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Amendment to Easement Between Orange County Sanitation District and Big Canyon Country Club Page 2 of 2 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Orange County Sanitation District Attn: Kelly Lore,Clerk of the Board 10844 Ellis Avenue Fountain Valley,CA 92708 SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY Documentary Transfer Tax Exempt Under Revenue and Taxation Code Section 11922 Recording Fee Exempt Under Government Code Section 27383 Building Homes&Jobs Trust Fund Fee Exempt Under Government Code Section 27338.1(a)(2)(D) A.P.NO.442-032-70&442-032-58&442-030-00&442-032-60 OCSD Project# AMENDMENT TO EASEMENT BETWEEN ORANGE COUNTY SANITATION DISTRICT AND BIG CANYON COUNTRY CLUB This Amendment to Easement("Amendment")is made and entered into as of the day of , 2019, by and between ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District ("District") and BIG CANYON COUNTRY CLUB, a California Non-Profit Corporation ("BCCC"). District and BCCC are sometimes hereinafter individually referred to as "Party" and collectively referred to as "Parties." RECITALS WHEREAS, District is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code Sections 4700 et seq., providing for the ownership, operation and maintenance of wastewater collection, treatment and disposal facilities within Orange County, California; and WHEREAS, BCCC is a non-profit corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted; and WHEREAS,District owns,operates and maintains a 15-inch vitrified clay pipe trunk sewer and related appurtenances (the "Sewer") beneath property owned by BCCC (the `BCCC Property"); and WHEREAS, District is the grantee of an easement for the Sewer that was recorded as Instrument No. BK 9137 PG 952 in the Official Records of Orange County, CA ("Official Records") on October 22, 1969 (the "Original Easement"); and WHEREAS, on May 15, 2007, BCCC granted District an easement for relocation of another nearby portion of the same Sewer, which easement was recorded as Instrument No. 2007000315429 in the Official Records (the"2007 Easement"); and 1 1392387.2 WHEREAS,on June 13,2007,District quitclaimed the Original Easement in part to BCCC pursuant to a Quitclaim Deed recorded as Instrument No. 2007000376652 in the Official Records (the "2007 Partial Quitclaim"); and WHEREAS, the Sewer is presently located within the area described in the Original Easement, after giving effect to the 2007 Partial Quitclaim and the 2007 Easement, which area is referred to herein as the "Existing Easement Area;" and WHEREAS, pursuant to a Sewer Relocation Agreement between the Parties dated April 26, 2017, the Parties have agreed that the Existing Easement Area is to be amended to facilitate the partial relocation of an additional portion of the Sewer from one area of the BCCC Property to another nearby area of the BCCC Property although a portion of the Sewer may be abandoned in place; and WHEREAS,the purpose of this Amendment is to memorialize the partial relocation of the Sewer by deleting from the legal description of the Existing Easement Area the portion of the BCCC Property that will no longer be encumbered due to the relocation of the Sewer (the "New Quitclaim Area"), and to add to the legal description of the Existing Easement Area those portions of the BCCC Property that will become encumbered due to the relocation of the Sewer(the"New Easement Area"). AGREEMENT NOW THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows: SECTION 1. RECITALS The Recitals above are deemed true and correct, are hereby incorporated in this Section as though fully set forth herein, and each Party to this Amendment acknowledges and agrees that they are bound by the same. SECTION 2 AMENDMENT OF LEGAL DESCRIPTION OF EXISTING EASEMENT The Parties hereby agree that the legal description of the Existing Easement Area shall be amended as set forth in Attachments 1 and 2, attached hereto and by this reference incorporated herein. Attachment I provides a legal description of the New Easement Area, while Attachment 2 provides a legal description of the New Quitclaim Area. SECTION 3 FULL FORCE AND EFFECT Except as amended by this Amendment, the Existing Easement shall remain in full force and effect. 2 1392387.2 SECTION 4. AGREEMENT EXECUTION AND AUTHORIZATION Each of the undersigned represents and warrants that they are duly authorized to execute and deliver this Amendment and that such execution is binding upon the entity on whose behalf they are executing this Amendment. IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed as of the day and year first above written. BCCC: Big Canyon Country Club, A California Non-Profit Corporation By: Charles H. Fedalen, Jr., President By: David Voorhees, Assistant Secretary DISTRICT: Orange County Sanitation District, A County Sanitation District By: David Shawver, Board Chair By: Kelly Lore, Clerk of the Board APPROVED TO FORM: Bradley Hogin General Counsel Orange County Sanitation District 3 1392387.2 ATTACHMENT 1 LEGAL DESCRIPTION OF NEW EASEMENT AREA SEE ATTACHED 4 1392387.2 BEING THOSE PORTIONS OF BLOCK 56 OF IRVINE'S SUBDIVISION, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER THE MAP FILED IN BOOK 1, PAGE 88 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL "A:': A STRIP OF LAND 25.00 FEET IN WIDTH, THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHERLY TERMINUS OF THAT CERTAIN LINE DESCRIBED IN THE GRANT OF EASEMENT RECORDED MAY 15, 2007 AS INSTRUMENT NO. 2007000315429, OFFICIAL RECORDS, AS L23 BEING NORTH 38015'23" WEST 309.59 FEET; THENCE NORTH 28°02'23" WEST 65.40 FEET; THENCE NORTH 83°32'58" WEST 155.16 FEET; THENCE SOUTH 69025'35" WEST 84.50 FEET TO A POINT ON THE CENTERLINE OF THE EXISTING EASEMENT DESCRIBED AS PARCEL 1 IN BOOK 9137, PAGE 952, OFFICIAL RECORDS, SAID POINT BEING THE EASTERLY TERMINATION OF A LINE DESCRIBED AS NORTH 62040'44" WEST 85.27 FEET, SAID POINT ALSO BEING THE POINT OF TERMINATION. PARCEL "B": A STRIP OF LAND 15.00 FEET IN WIDTH FOR INGRESS AND EGRESS TO AND FROM ABOVE DESCRIBED PARCEL "A', THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS: COMMENCING AT THE MOST NORTHERLY CORNER OF TRACT NO. 7788, FILED IN BOOK 301, PAGES 10 THROUGH 14 INCLUSIVE, OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY RECORDER, SAID POINT ALSO BEING ON THE EASTERLY LINE OF JAMBOREE ROAD; THENCE NORTHERLY ALONG SAID EASTERLY LINE, NORTH 27°19'05" EAST 44.88 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 85030'52" EAST 23.29 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY HAVING RADIUS OF 20.00 FEET; THENCE NORTHERLY ALONG SAID CURVE AN ARC DISTANCE OF 23.45 FEET THROUGH A CENTRAL ANGLE OF 67010'00"; THENCE NORTH 27019'08" EAST 105.20 FEET TO A POINT ON THE CENTERLINE OF ABOVE DESCRIBED PARCEL "A', SAID POINT ALSO BEING THE POINT OF TERMINATION. AS SHOWN ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. NL LAND WEN rG�G PREPARED BY ME OR UNDER MY DIRECTION. No. 7914 A. WALDEN, P.LS. 7914 DATE / OF CND ALDEN & EXHIBIT "A" SSOCIATES LEGAL DESCRIPTION FOR ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVIL ENGINEERS-LAND SURVEYORS-PLANNERS OCSD PROJECT No. 5-62-1 2552 WHITE ROAD,SUITE B•1RVINE,CA 92614-6236 W.O. No. 1 140-458-6X2 Date 04-17-2019 (949)660-0110 FAX:660-0418 Engr.B.J.W. Chk'd.J.W. Sheet 1 of 1 rRgcr No43 J 3�4 9444 �O Q��ti 80 40 0 80 NI 0 PARCEL "A" 0) 25' OCSD EASEMENT SCALE IN FEET Q��`o 0 0 1 inch =80 ft. 4n o N N PORTION OF PARCEL 1 BK 9137 PG 952, O.R. LJ TO BE QUITCLAIMED BY SEPARATE DOCUMENT ��52 66' �S- �/ - \ POINT OF cb� �� /i/---PARCEL 2, BK 9137, N \I L1 �� PARCELING"A" � 0 i PG 952, O.R. TO BE QUITCLAIMED BY �C�� `� L_ 1S�p SEPARATE DOCUMENT ova Q i� PARCEL"B" �O �� b ' G 15' OCSD ACCESS �`L' �� L7 EASEMENT moo TRUE POINT PORT. BLK. 56 �� OF BEGINNING IRVINE'S SUB \o, PARCEL "B" POINT OF M.M. 1 /88 COMMENCEMENT M c EL B r No 88 25.00' EASEMENT IN FAVOR LINE TABLE 130,717 /��14 OF OCSD PER GRANT OF EASEMENT RECORDED 05/15/07 LINE BEARING DISTANCE AS INST. NO. 2007-315429, O.R. L1 S 85052'23" W 21.80' Nt LAND L2 N 28002'23" W 65A0' 0�c, 1 ALLENly9oG�,G�� Qz o L3 N 83032'58" W 155.16' !I io. 7914 L4 S 69025'35" W 84.50' L5 N 62040'44" W 151.41' OF CAQ � O L6 N 27-19'08" E 105.20' CURVE TABLE � L7 S 85030'52" E 23.29' CURVE DELTA RADIUS LENGTH GP L8 N 27019'08" E 44.88' Cl 67010'00" 20.00' 23.45' ��. ws DEN & EXHIBIT "B" SOCIATES SKETCH TO ACCOMPANY A LEGAL DESCRIPTION FOR ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVIL ENGINEERS-LAND SURVEYORS-PLANNERS OCSD PROJECT No. 5-62-1 2552 WHITE ROAD,SUITE B-IRVINE,CA 92614-6236 W•O. No. 1140-458-6X2 Date 04-17-2019 (949)660-0110 FAX:660-0418 Engr. B.J.W. Chk'd.J.W. Sheet 1 of 1 ATTACHMENT 2 LEGAL DESCRIPTION OF NEW QUITCLAIM AREA SEE ATTACHED 5 1392387.2 BEING THOSE PORTIONS OF BLOCK 56 OF IRVINE'S SUBDIVISION, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER THE MAP FILED IN BOOK 1 , PAGE 88 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS, THAT PORTION OF THE 15 FOOT STRIP OF LAND DESCRIBED AS PARCEL 1 IN THE GRANT OF EASEMENT TO THE COUNTY SANITATION DISTRICT NO. 5 OF ORANGE COUNTY, CALIFORNIA, RECORDED NOVEMBER 14, 1969 IN BOOK 9137, PAGE 952 OF OFFICIAL RECORDS OF SAID COUNTY, LYING WESTERLY OF A LINE PARALLEL WITH AND 227.50 FEET EASTERLY OF THE EASTERLY LINE OF JAMBOREE ROAD AND LYING EASTERLY OF A LINE PARALLEL WITH AND 19.41 FEET EASTERLY OF SAID EASTERLY LINE OF JAMBOREE ROAD, TOGETHER WITH ALL OF PARCEL 2 OF SAID GRANT OF EASEMENT. AS SHOWN ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. PREPARED BY ME OR UNDER MY DIRECTION. \��AL LAND s ALLEN A. WALDEN, P.L.S. 7914 DATE No. 7914 sfq�� O F C A� ks DEN & EXHIBIT "A" SOCIATES LEGAL DESCRIPTION FOR QUITCLAIM OF ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVILENGINEERS-LANDSURVEYORS-PLANNERS OCSD PROJECT No. 5-62-1 2552 WHITE ROAD,SUITE B-IRVINE,CA 92614-6236 W.O.No. 1 140-458-6X2 Date 04-17-2019 (949)660-0110 FAX:660-0418 Engr. B.J.W. Chl.d.J.W. Sheet 1 of 1 100 50 0 100 SCALE IN FEET 1 inch = 100 ft. Qom- TRACT N0. 8444 M.M. 374/39-43 gym° EXISTING 15' EASEMENT o PORTION OF PARCEL 1, vQv� 22� BK 9137 PG 952, O.R. S0' TO BE QUITCLAIMED HEREIN. ZO PORT, BLK. 56 �s \ IRVINE'S SUB - \ M.M. 1/88 EXISTING 15' EASEMENT \ PARCEL 2, BK 9137, \ 1 PG 952, O.R. TO BE \� 1� 61 QUITCLAIMED HEREIN. �� O \ PORTION OF PARCEL 1, BK 9137 PG 952, O.R. QUITCLAIMED PER DEED RECORDED 06/13/07 \� TRACT NO. 7788 INST. NO. 2007-376652, O.R. M.M. 301/10- 14 i NAB LA Off. sG�, 0 yO No. 7914 G vws DEN & EXHIBIT "B" SOCIATES SKETCH TO ACCOMPANY A LEGAL DESCRIPTION FOR QUITCLAIM OF ORANGE COUNTY SANITATION DISTRICT EASEMENT BIG CANYON COUNTRY CLUB TRUNK SEWER REPLACEMENT CIVIL ENGINEERS-LAND SURVEYORS-PLANNERS OCSD PROJECT No. 5-62-1 2552 Wli1TE ROAD,SUITE B•IRVINE,CA 92614-6236 W.O. No. 1 140-458-6X2 Date 04-17-2019 (949)660-01I0 FAX:660-0418 Engr.B.J.W. Chk'd.J.W. Sheet 1 of 1 STEERING COMMITTEE Meeting Date To Bd. of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan Wiborg, Director of Environmental Services SUBJECT: SETTLEMENT AGREEMENT WITH ASEPTIC TECHNOLOGY, LLC GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to execute a Settlement Agreement to settle industrial wastewater discharge enforcement matters with Aseptic Technology, LLC, a facility that discharged without a valid Orange County Sanitation District permit, for $185,000 plus applicable fees and interest, in a form approved by General Counsel. BACKGROUND Orange County Sanitation District's (Sanitation District) pretreatment program is responsible for controlling discharges to the sewer from industrial users in the Sanitation District's service area. Certain facilities are required to be issued wastewater discharge permits in accordance with the U.S. Clean Water Act and the Sanitation District's Wastewater Discharge Regulations (Ordinance No. OCSD-53). On June 18, 2019, the Sanitation District informed Aseptic Technology, LLC (Aseptic), an industrial discharger located in Yorba Linda, that the Sanitation District intended to initiate administrative proceedings against the company for non-compliance. This was based on the Sanitation District's determinations that for at least 37 days, from April 1 , 2019 through June 17, 2019, Aseptic had discharged industrial wastewater without a valid discharge permit, in violation of the Ordinance. Aseptic has operated a beverage and dietary supplements manufacturing operation located at 24855 Corbit Place, Yorba Linda, CA, 92887, since 2013. In January 2016, due to a delinquency in making timely payments for user charges, the Sanitation District Board of Directors approved a 12-month payment agreement with Aseptic in the amount of $199,228.03. Aseptic made timely payments in accordance with the agreement and completed the 12-month schedule in January 2017. However, Aseptic Technology failed to make payments against quarterly invoices after January 2016; thus, necessitating a second payment agreement request in July 2017 for delinquent amounts totaling $451 ,161.54, which was paid in full. The second payment agreement also required Aseptic to remit timely payments against new obligations occurring during the term of the agreement. In January 2018, Aseptic requested a third payment agreement for delinquencies owed in the amount of $252,315.72, which was paid in full. This payment agreement request was authorized, and it required a letter of credit and a stipulation that current invoices were to be paid in a timely manner. As a result of the payment agreement, a typical two- Page 1 of 3 year Class 1 permit was not issued to Aseptic, and the permit was renewed for only three months at a time. Due to Aseptic's repeated failure to make timely payments pursuant to this payment agreement, the Sanitation District did not renew the permit which expired on March 31, 2019. However, Aseptic continued to discharge industrial wastewater to the sewer. An Order to Cease Discharge Without a Valid Permit was issued on April 11, 2019. The permit which expired March 31, 2019 was not renewed until May 6, 2019 when a payment was received — the facility had discharged to the Sanitation District without a permit throughout April and the first week of May — serious violations of the Sanitation District's Wastewater Discharge Regulations Ordinance. When the May 2019 permit expired on May 31, 2019, it was not renewed due to the facility's non-payment of user charges. Another Order to Cease Discharge Without a Valid Permit was issued on June 5, 2019. The Sanitation District met with Aseptic on June 18, 2019 and agreed to settle the violations associated with discharging without a permit. Pursuant to Government Code Sections 54739-54740.5 and Section 616 of the Sanitation District's Ordinance, the Sanitation District is authorized to impose administrative civil penalties up to $5,000 for each day of discharge in violation of any waste discharge limit or permit requirement imposed by the Sanitation District. Pursuant to Resolution No. OCSD 11-04, settlement negotiations then took place between the Sanitation District staff and Aseptic. As a result of these negotiations, Sanitation District staff recommended the settlement of all matters related to the enforcement action in return for payment by Aseptic of $185,000. This amount is based on the allowable penalties considering the magnitude, frequency, duration, intent, and impact of the violations. The staff is willing to accept $185,000 with required provisions for Aseptic to return to compliance. Aseptic is willing to settle on these terms. In accordance with Resolution No. OCSD 11-04, a committee consisting of the General Manager, or his designee, the Assistant General Manager/Director of Finance and Administrative Services, and the Director of Engineering has the authority to approve settlement of claims up to $100,000, and the Board of Directors have the authority to approve settlement of claims above $100,000. RELEVANT STANDARDS • OCSD Ordinance No. 48 Wastewater Discharge Regulations • CA Government Code Sections 54739-54740.5 • Resolution No. OCSD 11-04, Article IV PROBLEM Aseptic discharged without a valid Sanitation District permit and is therefore subject to administrative penalties. Aseptic's CEO expressed interest in reaching a settlement, however, any settlement agreement negotiated by the Sanitation District's staff committee that is above $100,000 must be approved by the Sanitation District's Board of Directors. Page 2 of 3 PROPOSED SOLUTION The Sanitation District staff recommend that the Board of Directors approve the Settlement Agreement. TIMING CONCERNS Aseptic has requested a 12-month payment schedule to pay the $185,000 in civil penalties (approximately $193,000 including interest and fees). A delay in approving the settlement agreement would delay the initiation of this payment schedule. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District would not be able to settle this particular enforcement matter as per staff's recommendation and the Aseptic CEO's request and would instead move to a costly and resource-intensive administrative hearing process. PRIOR COMMITTEE/BOARD ACTIONS December 2017/January 2018 - Approved the deferred payment agreement negotiated by the General Manager for collection of all charges and fees owed for sanitary sewer service charges. In lieu of denying the request for a 3rd deferred payment agreement, negotiated a resolution whereby the permit was extended for 90 days to allow Aseptic to become current with payments. July 2017 - Approved the deferred payment agreement negotiated by the General Manager for collection of all charges and fees owed for sanitary sewer service charges, plus interest of 6.00% annum, with Aseptic Technology, in a form approved by General Counsel. January 2016 - Approved the deferred Payment Agreement negotiated by the General Manager for collection of all charges and fees owed for sanitary sewer service charges, plus interest of 5.25% annum, with Aseptic Technology, in a form approved by General Counsel. FINANCIAL CONSIDERATIONS Aseptic is currently delinquent at this location for an approximate amount of $91,000. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Memorandum regarding the Settlement Agreement between Aseptic Technology, LLC and Orange County Sanitation District • Draft Settlement Agreement between Aseptic Technology, LLC and Orange County Sanitation District Page 3 of 3 O�JNAl SANl Tq Troy _23- o -r rFcl,N HE �N�Qo�dc August 8, 2019 MEMORANDUM TO: File SUBJECT: Settlement Agreement between Aseptic Technology, LLC (Aseptic) and the Orange County Sanitation District(OCSD) On June 18, 2019, OCSD informed Aseptic Technology, LLC (Aseptic) that OCSD intended to initiate administrative proceedings against Aseptic based on OCSD's determinations that for at least 37 days from April 1, 2019 through June 17, 2019, Aseptic had discharged industrial wastewater without a valid discharge permit, in violation of OCSD's Wastewater Discharge Regulations (Ordinance). Aseptic has operated a beverage and dietary supplements manufacturing operation located at 24855 Corbit Place, Yorba Linda, CA, 92887, since 2013. Due to a delinquency in making timely payments for user charges, in January 2016, the OCSD Board of Directors approved a 12-month payment agreement with Aseptic in the amount of$199,228.03. Aseptic made timely payments in accordance with the agreement, and completed the 12-month schedule as of January 2017. However, Aseptic Technology failed to make payments against quarterly invoices after January 2016; thus necessitating a second payment agreement request in July 2017 for delinquent amounts totaling $451,161.54. The second payment agreement also required Aseptic to remit timely payments against new obligations occurring during the term of the agreement. In January of 2018, Aseptic requested a third payment agreement for delinquencies owed in the amount of$252,315.72. This payment agreement request was authorized, and it required a letter of credit and a stipulation that current invoices were to be paid in a timely manner. As a result of the payment agreement, a typical two-year Class 1 permit was not issued to Aseptic, and the permit was renewed for only three month s-at-a-time. Due to Aseptic's repeated failure to make timely payments pursuant to this payment agreement, OCSD did not renew the permit which expired on March 31, 2019. However, Aseptic continued to discharge industrial wastewater to the sewer. An Order to Cease Discharge Without a Valid Permit was issued on April 11, 2019. The permit which expired March 31, 2019 was not renewed until May 6, 2019 when a payment was received —the facility had discharged to OCSD without a permit throughout April and the first week of May—serious violations of OCSD's Wastewater Discharge Regulations Ordinance. When the May 2019 permit expired on May 31, 2019, it was not renewed due to the facility's non-payment of user charges. Another Order to Cease Discharge Without a Valid Permit was issued on June 5, 2019. OCSD met with Aseptic on June 18, 2019, and agreed to settle the violations associated with discharging without a permit. Pursuant to Government Code Sections 54739 - 54740.5 and Section 616 of OCSD's Ordinance, OCSD is authorized to impose administrative civil penalties up to Five Thousand Dollars ($5,000.00) for each day of discharge in violation of any waste discharge limit or permit requirement imposed by OCSD. Pursuant to Resolution No. 11-04, settlement negotiations then took place between OCSD staff and Aseptic. As a result of these negotiations, OCSD staff recommended the settlement of all matters related to the enforcement action in return for payment by Aseptic of One-hundred-and-Eighty- Five Thousand Dollars ($185,000.00). This amount is based on the allowable penalties considering the magnitude, frequency, duration, intent, and impact of the violations. The staff is willing to accept One-hundred-and-Eighty-Five Thousand Dollars ($185,000.00) with required provisions for Aseptic to return to compliance. Aseptic is willing to settle on these terms. In accordance with Resolution No. 11-04, a committee consisting of the General Manager, or his designee, the Director of Finance and Administrative Services, and the Director of Engineering has the authority to approve settlement of claims up to One-Hundred-Thousand Dollars ($100,000.00), and the Board of Directors have the authority to approve settlement of claims above One-Hundred- Thousand Dollars ($100,000.00). By this memorandum, the committee recommends the Settlement Agreement with Aseptic to be submitted for the Board of Directors' approval. Dated: �/� By: Y, Lan Wiborg, Director of Environment6l Services Dated: V ' lS •-c1 0� By; ia A"I'" 0 TL—� Lorenzo I yngwAssistant General Manager & Di ctor of Financ and Administrative Services Dated:A ,- 14` ki 1 By: 4 16 �l Kat leen Millea3lfector of Engineering Enforcement ID 2019-00030568 \\filer- 1\ocsd\dept\es\620\ISC\StaillBerber\Services\SCP SourceControlPermittin,\Permitlecs\Aseptic"I'echnolog�I.LC\Aseptic"I'echnolog�l.LC[I- 5010021_SclllemenlAgrecment-Memo_v20190808.docx SETTLEMENT AGREEMENT THIS AGREEMENT, to be effective October_, 2019, is entered into by and among the Orange County Sanitation District (hereinafter "OCSD"), a county sanitation district duly organized pursuant to Section 4700 et seq. of the Health & Safety Code of the State of California, Aseptic Technology, LLC (hereinafter "Aseptic"), and Joshua Cua, an individual and CEO of Aseptic. OCSD, Aseptic, and Joshua Cua are sometimes hereinafter collectively referred to as the "Parties". RECITALS A. Aseptic has operated a beverage and dietary supplements manufacturing facility located at 24855 Corbit Place, Yorba Linda, CA, 92887, since 2013. Permit No. 50-1-001 was issued to Aseptic in August 2013 for the discharge of wastewater associated with the facility operation. Due to a change in ownership, the permit was re- issued in January 2014 as Permit No. 50-1-002 (later re-listed as 1-501002 and hereinafter referred to as "Permit No. 1-501002" or "Permit"). For at least 37 days from April 1, 2019 to June 17, 2019, Aseptic discharged without a valid permit and was therefore in violation with OCSD's Wastewater Discharge Regulations Ordinance OCSD- 48 (hereinafter "the Ordinance" or "OCSD's Ordinance"). B. Joshua Cua is, and at all material times referred to herein has been, the Chief Executive Officer of Aseptic. In such capacity, Joshua Cua has been and is responsible for the daily business operations at Aseptic, including the proper disposal of wastewater generated from the manufacturing processes and all related reporting requirements in accordance with OCSD's Ordinance. As such, the Parties hereto acknowledge and agree that any acknowledgements, agreements, obligations and Page 1 of 12 1431447.1 commitments attributable to Aseptic herein shall be deemed to be acknowledgements, agreements, obligations and commitments attributable to Joshua Cua as well. C. Between January 2016 and January 2018, Aseptic and OCSD entered into three separate payment agreements concerning Aseptic's repeated failure to make timely payment on various user charges and quarterly invoices as required under the Ordinance and Permit conditions. The contents and nature of these three agreements are summarized as follows: 1. In January 2016, the OCSD Board of Directors approved a payment agreement relating to Aseptic's failure to make timely payments for sewer user charges for fiscal year 2014-2015 (annual reconciliation) and the estimated sewer user charges for the first and second quarters of fiscal year 2015-2016. As of January 2016, Aseptic owed delinquent payments totaling $199.228.03. Following execution of the payment agreement, OCSD renewed the Permit, which had previously expired in December 2015, for an approximately two-year period (expiration date of December 31, 2017). 2. In July 2017, the OCSD Board of Directors approved a second payment agreement relating to Aseptic's failure to make timely payments for sewer user charges for fiscal year 2015-2016 (annual reconciliation), the estimated sewer user charges for the fourth quarter of fiscal year 2015-2016 and the first, second, and third quarter of fiscal year 2016-2017, as well as penalties and interest. As of July 2017, Aseptic owed delinquent payments totaling $451,161.54. This agreement required Aseptic to (i) make timely payments over a 12-month period for delinquent charges, and (ii) remit timely payments against new obligations, including user charges, during the term of the agreement Page 2 of 12 1431447.1 3. In January 2018, the OCSD Board of Directors approved a third payment agreement relating to Aseptic's failure to make timely payments for sewer user charges for fiscal year 2016-2017 (annual reconciliation) and the estimated sewer user charges for the first quarter of fiscal year 2017-2018. As of January 2018, Aseptic owed delinquent payments totaling $252,315.72. This agreement required Aseptic to (i) make timely payments for delinquent charges, (ii) issue a letter of credit in favor of OCSD, and (iii) stipulate that Aseptic would make payments on future invoices in a timely manner. D. On December 31, 2017, the Permit expired. Due to Aseptic's repeated failure to make timely payments pursuant to the Permit conditions, Ordinance, and the payment agreements, OCSD did not renew the Permit for the typical two-year period. Instead, the Permit was renewed in March 2018 for less than one month following the execution of the third payment agreement. The Permit, which expired on March 31, 2018, was then periodically renewed for only three months at a time. Therefore, the Permit was renewed for three-month periods in April 2018, July 2018, October 2018, and January 2019. E. Between April 2018 and January 2019, Aseptic failed to make timely payment on two separate invoices: the fourth quarter invoice issued on June 30, 2018, and the second quarter invoice issued on December 31, 2018. F. When the January 2019 Permit expired on March 31, 2019, OCSD did not renew the Permit due to Aseptic's repeated failure to promptly pay user charges as required under the Permit conditions, the Ordinance, and prior payment agreements Page 3 of 12 1431447.1 between OCSD and Aseptic. G. Despite the expiration of the Permit on March 31, 2019, Aseptic continued to discharge industrial wastewater to OCSD facilities in violation of the Ordinance and federal and state laws. On April 11, 2019, OCSD issued Aseptic an Order to Cease Discharge Without a Valid Permit. H. On May 6, 2019, OCSD received Aseptic's delinquent payment on the second quarter invoice issued on December 31, 2018. OCSD subsequently renewed the Permit on May 6, 2019, for a twenty-six (26) day period. The renewed Permit expired on May 31, 2019. When the May 2019 Permit expired on May 31, 2019, OCSD did not renew the Permit due to Aseptic's repeated failure to promptly pay user charges. I. Despite the expiration of the Permit on May 31, 2019, Aseptic continued to discharge industrial wastewater to OCSD facilities in violation of the Ordinance and state and federal laws. On June 5, 2019, OCSD issued Aseptic an Order to Cease Discharge Without a Valid Permit. Between April 1, 2019 and June 17, 2019, Aseptic illegally discharged industrial wastewater without a valid permit for at least thirty-seven (37) days. J. On June 18, 2019, OCSD met with Aseptic and agreed to settle the violations referenced herein associated with discharging without a permit. K. All the actions or omissions described in Recitals G and I are significant violations of Permit No. 1-501002, OCSD's Ordinance, and state and federal laws. Pursuant to Government Code Sections 54739 and 54740.5 and Section 616 of OCSD's Page 4 of 12 1431447.1 Ordinance, OCSD has the authority to institute administrative enforcement proceedings and impose civil penalties on Aseptic for violations of the Ordinance and the terms of Aseptic's Permit No. 1-501002. Pursuant to this authority, OCSD is authorized to impose penalties up to Five-Thousand Dollars ($5,000.00) per violation for each day of discharge in violation of any Ordinance or wastewater discharge limit imposed by OCSD, up to Three-Thousand Dollars ($3,000.00) for each day for failing or refusing to timely comply with any compliance schedules established by OCSD, and up to Two-Thousand Dollars ($2,000.00) for each day for failing or refusing to furnish technical, monitoring reports, or any other required documents. G. During a compliance meeting on June 18, 2019 at OCSD's offices, OCSD met with Joshua Cua of Aseptic to discuss the aforementioned violations and the resolution of the non-compliance issues. During this compliance meeting, OCSD informed Aseptic of its intention to issue an administrative complaint. Aseptic expressed interest in settling the matters with OCSD. H. The Parties now intend to resolve and settle all matters arising from the alleged violations occurring from April 1, 2019 through June 17, 2019, to avoid further administrative proceedings and the issuance of an Administrative Complaint against Joshua Cua and Aseptic, and the institution of any litigation that may follow based upon such matters. NOW, THEREFORE, in consideration of the facts recited above and the covenants, conditions and promises set forth below, the Parties hereby agree as follows: Page 5 of 12 1431447.1 AGREEMENT 1. Aseptic shall pay to OCSD the total sum of One Hundred and Eighty-Five Thousand dollars ($185,000.00) in settlement of all claims, actions, or charges that OCSD may have against Aseptic and Joshua Cua relating to any violations of the Ordinance which may have occurred from April 1, 2019 through June 17, 2019. This Settlement includes penalties for violating conditions set forth in the Ordinance. Aseptic shall make payment(s) in accordance with the following schedule: Due Date Installment Principal Interest Admin PaymenFee 11/1/2019 1 $14,893.87 $1,156.25 $25.00 $16,075.12 12/1/2019 2 $14,986.96 $1,063.16 $25.00 $16,075.12 1/1/2020 3 $15,080.63 $969.49 $25.00 $16,075.12 2/1/2020 4 $15,174.89 $875.24 $25.00 $16,075.13 3/1/2020 5 $15,269.72 $780.40 $25.00 $16,075.12 4/1/2020 6 $15,365.16 $684.96 $25.00 $16,075.12 5/1/2020 7 $15,461.19 $588.93 $25.00 $16,075.12 6/1/2020 8 $15,557.83 $492.30 $25.00 $16,075.13 7/1/2020 9 $15,655.06 $395.06 $25.00 $16,075.12 8/1/2020 10 $15,752.90 $297.22 $25.00 $16,075.12 9/1/2020 11 $15,851.36 $198.76 $25.00 $16,075.12 10/1/2020 12 $15,950.43 $99.69 $25.00 $16,075.12 The monthly amount includes a $25 administrative handling fee, plus a 7.5% interest rate assessed each month to the principal balance. The first payment of $16,075.12 is due on or before November 1, 2019. (a) The payments pursuant to this Settlement Agreement shall be made payable by cashier or bank-issued check to Orange County Sanitation District, and delivered to the Administrative Offices of OCSD located at: 10844 Ellis Avenue Fountain Valley, CA 92708 (b) Payments must be received by OCSD prior to 4:00 p.m. on the days listed Page 6 of 12 1431447.1 in the above schedule. 2. As part of this Settlement Agreement, Aseptic is required to complete all necessary actions to immediately cease discharging without a permit and attain compliance with all permit conditions and OCSD Ordinances as explained by OCSD in the Orders to Cease Discharge issued on April 11, 2019 and June 5, 2019. 3. Extraordinary Cost. Aseptic shall be responsible for payment of all reasonably necessary costs incurred by OCSD for sampling, testing, administration, and enforcement procedures, as deemed appropriate by OCSD, that exceed the ordinary cost of routine sampling and inspection and/or any routine activities. Routine sampling and inspection shall be defined as sampling, inspection, and monitoring activities conducted by OCSD on a monthly and quarterly basis. Reasonable costs may include, but are not limited to, engineering, inspection, sampling, and legal costs that may be incurred in order to enforce the provisions of this Settlement Agreement, OCSD's Ordinance, or Permit No. 1-501002. 4. In consideration of all of the foregoing, and except as otherwise set forth in this Settlement Agreement, the Parties do hereby, and for each of themselves, their heirs, executors, administrators, board members, successors, assigns, agents, subsidiaries, affiliates, servants, directors, officers, shareholders, attorneys, employees and partners, mutually release, acquit, and forever discharge each of the other parties hereto and his, her, their, or its heirs, executors, administrators, board members, successors, subsidiaries, affiliates, attorneys, agents, servants, directors, officers, shareholders, employees, partners, or representatives, and assigns (collectively, "Releasees") from any and all rights, claims, warranties, demands, debts, obligations, liabilities, actions, damages, costs, expenses, and other claims whatsoever that may be asserted against any other Releasee by reason of any matter occurring, performed, created, happening, Page 7 of 12 1431447.1 arising out of, or connected with Aseptic's violations of the Permit No. 1-501002 and OCSD's Ordinance from April 1, 2019 to June 17, 2019 and the OCSD's investigation of all such allegations and discharges. 5. The undersigned agree that they will forever refrain and forbear from commencing, instituting, or prosecuting any lawsuit, action or administrative proceeding against each other based on, arising out of, or in any way connected with Aseptic's violations of the Permit No. 1-501002 and OCSD's Ordinance from April 1, 2019 to June 17, 2019, and OCSD's investigation of all such allegations and discharges. 6. Notwithstanding the foregoing and any other provision of this Settlement Agreement, if OCSD subsequently initiates either administrative or judicial enforcement proceedings against Aseptic and Joshua Cua for any future violations of any OCSD ordinance or permit condition, the alleged violations contained herein shall be deemed to have occurred. In such circumstances, no civil penalties shall be subsequently awarded to OCSD for the violations occurring on or before June 17, 2019, but such violations may be considered in determining the appropriate sanction (including administrative penalties), if any, to issue as a result of any future violation(s) of the terms of OCSD ordinances, permit conditions, this Settlement Agreement, and/or any administrative order or requirement issued by OCSD. 7. Nothing herein shall be construed to limit the authority or ability of the Orange County Sanitation District to initiate legal or administrative proceedings against Aseptic and Joshua Cua for any violation of local, state, or federal wastewater discharge regulations occurring on or after June 18, 2019, or to enforce the terms of this Settlement Agreement or Permit No. 1-501002. 8. The undersigned represent and warrant to Releasees that each of the undersigned has not heretofore assigned or transferred, or purported to assign or Page 8 of 12 1431447.1 transfer, to any person, firm, corporation, association, or entity any of the rights, claims, warranties, demands, debts, obligations, liabilities, actions, damages, costs, expenses, and other claims whatsoever referred to herein, and each of the undersigned agrees to indemnify and hold harmless the other Releasee against, without limitation, any and all rights, claims, warranties, demands, debts, obligations, liabilities, actions, damages, costs, expenses, and other claims, including attorney fees, arising out or connected with any such assignment, transfer, or purported assignment or transfer. 9. The undersigned acknowledge that each has read the Settlement Agreement in full and understands and voluntarily consents and agrees to each and every provision contained herein. 10. Each of the parties agrees to bear all of its own attorney fees and costs arising out of, connected with, or relating to the subject matter of this Settlement Agreement and hereby specifically and expressly waives all claims, rights, and interest of every kind or nature whatsoever, whether provided for by contract, statute, or otherwise, for attorney fees and/or costs connected with, arising out of, and/or incurred in connection with the facts, claims and/or rights released in and by this Settlement Agreement except as expressly provided in Paragraph 12 below. 10. The undersigned further declare and represent that no promise, inducement, or agreement not herein expressed has been made to the undersigned; that this Settlement Agreement contains the entire agreement between the parties hereto; that terms of this Settlement Agreement are contractual and not a mere recital; and that these terms are the result of negotiations between the undersigned. 11. Any formal notice, demand or request provided for in this Agreement, or made in connection with this Agreement, shall be in writing and shall be deemed to be properly given or made if(a) personally delivered, or (b) sent by registered mail (postage Page 9 of 12 1431447.1 prepaid), to the persons specified: To Aseptic Technology, LLC: Joshua Cua, CEO Aseptic Technology, LLC 24855 Corbit Place Yorba Linda, CA 92887 To Joshua Cua: Joshua Cua, CEO c/o Aseptic Technology, LLC 24855 Corbit Place Yorba Linda, CA 92887 To OCSD: James D. Herberg, General Manager Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-8127 With Copy To: Bradley R. Hogin, Esq. Woodruff, Spradlin & Smart 555 Anton Blvd., #1200 Costa Mesa, CA 92626-7670 12. Should litigation be initiated by either of the parties hereto to enforce the terms of this Settlement Agreement or the rights and duties of the parties in relation thereto, the prevailing party in such litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for its attorney fees and costs in the litigation, which sum shall be determined by the court in such litigation or in a separate action brought for that purpose. 13. The persons executing this Settlement Agreement represent and warrant to the Releasees that the execution and performance of the terms of this Settlement Agreement have been duly authorized by all requisite corporation, partnership, individual, municipal, or other entity requirements and that the undersigned have the right, power, legal capacity, and authority to execute and enter into this Agreement. 14. This Settlement Agreement shall be construed under and interpreted in Page 10 of 12 1431447.1 accordance with the laws of the State of California and as if drafted by both parties hereto. 15. This Settlement Agreement may be modified only by execution of a subsequent written agreement between the parties. No oral modification of the terms set forth herein shall be valid. 16. The undersigned acknowledge that each has been represented by counsel of their own choice in connection with the preparation and execution of this Settlement Agreement. The undersigned acknowledge and represent that each has read the Settlement Agreement in full and understands and voluntarily consents and agrees to each and every provision contained herein. 17. The recitals above are hereby incorporated into this section as though fully set forth herein and each party acknowledges and agrees that such party is bound, for purposes of this Agreement, by the same. Page 11 of 12 1431447.1 IN WITNESS WHEREOF, the Parties have entered into this Settlement Agreement as of the date first set forth above. Aseptic Technology, LLC Dated: By: Joshua Cua, CEO Joshua Cua, an individual Dated: By: Joshua Cua, CEO ORANGE COUNTY SANITATION DISTRICT Dated: By: James D. Herberg, General Manager Approved as to form: Dated: By: Bradley R. Hogin, General Counsel Page 12 of 12 Enforcement ID 2019-00030568 http://ecm/sites/board/PublishedCommitteeAgendaSP2010/03.Administrative Complaint-Aeseptic/03.03-Aseptic Technology Settlement Agreement.docx 1431447.1 STEERING COMMITTEE Meeting Date To Bd. of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: GENERAL MANAGER'S FISCAL YEAR 2019-20 DRAFT WORK PLAN GENERAL MANAGER'S RECOMMENDATION Receive and File the General Manager's Fiscal Year 2019-2020 Draft Work Plan. BACKGROUND Each year, the General Manager prepares a work plan of activities supporting the Orange County Sanitation District's strategic goals and initiatives to be accomplished during the fiscal year. The draft work plan is being submitted to the Steering Committee for review and input from the Directors. Afinal work plan will be submitted to the Steering Committee and Board of Directors for approval in September. RELEVANT STANDARDS • Sustain 1, 5, 20-year planning horizons • 24/7/365 treatment plant reliability • Negotiate fair and equitable labor agreements • Commitment to safety & reducing risk in all operations • Meet volume and water quality needs for the GWRS • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PRIOR COMMITTEE/BOARD ACTIONS The General Manager provides his draft and final work plan annually and provides updates accordingly. ADDITIONAL INFORMATION The General Manager's work plan includes goals for the 2019-2020 fiscal year. The work plan has five areas of focus which include: Safety and Security, Succession Planning, Resource Recovery, Reliability, and Operational Optimization. FINANCIAL CONSIDERATIONS All items included in the General Manager's work plan are budgeted in the FY 2019-2020 Budget. Page 1 of 2 ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • General Manager's Fiscal Year 2019-2020 Proposed Work Plan Page 2 of 2 JN`I SAN/r,J/O ORANGE COUNTY SANITATION DISTRICT Memorandum 9 OJ FOl N H August 21, 2019 TO: Chairman and Members of the Board of Directors FROM: James D. Herberg General Manager SUBJECT: General Manager's Fiscal Year 2019-20 Proposed Work Plan I am pleased to present my proposed Fiscal Year 2019-20 work plan. The work plan has nineteen goals organized under five focus areas including safety and security, succession planning, resource recovery, reliability, and operational optimization. This work plan will be reviewed with the Steering Committee and Board of Directors in August 2019 and a mid-year update will be provided in January 2020. 1. Safety and Security • Emergency Preparedness — Develop and conduct an external emergency response and recovery drill by June 30, 2020 that tests the Integrated Emergency Response Plan (IERP). • Safety Engineering Solutions — Complete the six of the remaining eight Safety Improvement Construction Projects by June 30, 2020. • Voluntary Protection Plan (VPP) Certification — Apply for the VPP certification for Plant No. 1 by June 30, 2020. • Physical Security Plan —Complete the development and implementation of a Physical Security Plan by June 30, 2020. • Cyber Security Plan — Complete the development and implementation of a Cyber Security Plan by June 30, 2020. 2. Succession Planning • Leadership Development — Provide at least two specialized trainings tailored to the Supervisory Level and one for the EMT/ Managers by June 30, 2020. 3. Resource Recovery • Groundwater Replenishment System (GWRS) Final Expansion — Meet the following milestones to support the final expansion of GWRS: o Advertise for Construction of Project P2-122, Headworks Modifications at Plant No. 2 for GWRS Expansion by January 31, 2020. o Issue Construction Contract Notice to Proceed for Project P2-122, Headworks Modifications at Plant No. 2 for GWRS Expansion by June 30, 2020. • Emerging Contaminants — Work with industry, academic, and agency partners to develop science-based regulations and an adaptive plan by June 30, 2020, to address the potential impact of PFAS to OCSD. • Food Waste Digestion Pricing Policy— Present a draft policy and pricing plan to the Board of Directors by June 30, 2020. 4. Reliability • Asset Management Plan — Develop an Asset Management Plan by December 31, 2019 that includes an inventory of critical assets for each process area and the collection system; an evaluation of their condition and performance; and an implementation plan to maintain, rehabilitate, and replace these assets to meet the required levels of service at the lowest life cycle cost and at an acceptable level of risk. Page 2 • Central Generation Engines — Implement an in-house heavy mechanical maintenance team and award a contract by December 31, 2019,to overhaul two Central Generation Engines. • Pump Station Bypass Exercises— Bypass pump two Pump Stations to prove emergency readiness and use the exercise to do critical valve and electrical maintenance at those Pump Stations by June 30, 2020. 5. Operational Optimization • OCSD Headquarters Building—Advertise for Construction for Headquarters Complex Site Preparation, Contract No. P1-128C by February 29, 2020. Obtain City of Fountain Valley approvals for the Headquarters Building by June 30, 2020. • Document Management — Complete Records Management and Trusted System Needs Assessment by October 31, 2019. • Communications Audit — Complete the audit and provide a report to the Legislative and Public Affairs Committee by March 30, 2020. • Capital Project Delivery — Complete a formal design review framework by June 30, 2020. Complete a framework for regular updates of engineering policies and procedures, design guidelines and engineering standards by June 30, 2020. • Solids Handling Optimization — Complete commissioning and optimize performance of new solids handling facilities at each plant by December 31, 2019. • Strategic Plan — Complete new Strategic Plan for adoption by the Board of Directors by November 30, 2019. • Two Year Budget — Complete new two-year budget for adoption by the Board of Directors on June 24, 2020. Page 3 STEERING COMMITTEE Meeting Date To Bd. of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Number Item Number 5 Orange County Sanitation District FROM: Laura Kalty, Chief Negotiator SUBJECT: SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE SUPERVISOR & PROFESSIONAL GROUPS CHIEF NEGOTIATOR'S RECOMMENDATION A. Adopt Resolution No. OCSD 19-08, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the two (2) Supervisory and Professional Management Group bargaining units. BACKGROUND The MOUs between the Orange County Sanitation District (Sanitation District) and the Supervisor Group and Professional Group bargaining units that became effective on July 1, 2016 expired on June 30, 2019. The Supervisory and Professional Management Group (SPMG) submitted its initial proposals for successor MOU(s) on January 28, 2019. SPMG and the Sanitation District have met and conferred in good faith twelve (12) times since receiving the initial proposal. As of the Board meeting on June 26, 2019, all items proposed, except for salary and wages, had either reached tentative agreement or had been withdrawn. On June 26, 2019, the Board of Directors authorized the Chief Negotiator to make a counter proposal to SPMG, including a three-year contract with a 3.0% salary increase and corresponding range adjustments due in the first pay period in July for each year of the contract, with the first increase to commence on July 5, 2019. The Sanitation District delivered this counter proposal to SPMG on July 10, 2019. SPMG's membership ratified the proposal by majority vote on July 23, 2019. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Offer competitive compensation and benefits • Cultivate a highly qualified, well trained, and diverse workforce • Negotiate fair and equitable labor agreements Page 1 of 4 • Maintain positive employer-employee relations • Provide professional growth and development PROBLEM The MOUs between the Sanitation District and the Supervisor Group and Professional Group bargaining units that became effective on July 1, 2016 expired on June 30, 2019. PROPOSED SOLUTION Adopt Resolution No. OCSD 19-08, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022". Based on Board direction, the Sanitation District issued a counter proposal to SPMG on July 10, 2019, including three-year contracts with a 3% salary increase for each year of the contract. SPMG distributed the proposals to their membership for voting and SPMG's membership ratified the proposals by majority vote on July 23, 2019. RAMIFICATIONS OF NOT TAKING ACTION • Labor instability • Possible impacts to morale • Impasse PRIOR COMMITTEE/BOARD ACTIONS In December 2018, an Ad Hoc Subcommittee of the Steering Committee selected Laura Kalty from Liebert Cassidy Whitmore to serve as the Sanitation District's Chief Negotiator. In preparation for and during the meet and confer process, the Chief Negotiator received direction for labor negotiations with SPMG from the Steering Committee and the Board of Directors. The SPMG meet and confer process was agendized for discussion in Closed Session at the following Committee/Board meetings: • February 27, 2019 - Steering Committee and Board Meeting • March 18, 2019 - Special Steering Committee Meeting • March 27, 2019 - Steering Committee and Board Meeting • April 24, 2019 - Steering Committee and Board Meeting • May 22, 2019 - Steering Committee and Board Meeting • June 26, 2019 - Steering Committee and Board Meeting • July 24, 2019 - Steering Committee and Board Meeting Page 2 of 4 ADDITIONAL INFORMATION The SPMG is the recognized employee organization certified to provide exclusive representation over wages, hours of work, and other terms and conditions of employment for exempt employees in the Supervisor Group and Professional Group bargaining units. There are 267 exempt employees represented by the SPMG. The Supervisor Group consists of 60 employees and the Professional Group consists of 207 employees. Employees in these groups are assigned to classifications that perform frontline supervisory duties and program-related development, implementation, and analytical duties associated with supporting the collection, treatment, and recycling of wastewater. Some supervisory classifications are assigned to a 365-days per year, 7-days per week, 24-hours per day operation. Based on Board direction, the Sanitation District issued a counter proposal to SPMG on July 10, 2019, including three-year contracts with a 3% salary increase for each year of the contract. SPMG distributed the proposals to their membership for voting and SPMG's membership ratified the proposals by majority vote on July 23, 2019. Full redlined versions of each SPMG MOU are attached for review. A summary of the key changes to the MOUs are as follows: 1. Article 1, Recognition: Term of the agreement begins July 1, 2019. 2. Article 2, Duration: Agreement terminates on June 30, 2022. 3. Article 13, Salary Adjustments and Compensation: Salary: Year 1 — 3% Salary Increase, retroactive to the first pay period of July 2019; Year 2 — 3% Salary Increase, effective the first pay period of July 2020; Year 3 — 3% Salary Increase, effective the first pay period of July 2021. 4. Article 16, Holidays: language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31St of prior year. 5. Article 17, Hours of Work: updated language to reflect that Operations Supervisors and Chief Plant Operators receive a 30-minute paid lunch and are to remain onsite and perform work as necessary. 6. Article 20, Insurance: Reopener to discuss establishment of Health Retirement Account (HRA) for all employees. 7. Article 26, Shift Differential: Shift Differential increased from $2.50 per hour to $3.00 per hour. 8. Article 27, Leave-of-Absence With Pay: Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. 9. Article 46, Dues Deductions: New language to establish information provided by OCSD to SPMG regarding members, remittance of dues; article title changed to "New Employee Orientation and Dues Deductions". Page 3 of 4 10.Article 51, Resignation: The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. Listed below are articles with proposed housekeeping changes in the tentative agreement by article number: Article 25 — Retirement Article 27 — Leave-of-Absence With Pay Article 28 — Leave-of-Absence Without Pay Appendix A — Medical Insurance Plan Design Components CEQA N/A FINANCIAL CONSIDERATIONS The total cost is $7,086,027 over the term of the agreement. Sufficient funds are incorporated in the Sanitation District's Five-Year Cashflow to support the adjustments required by this Memorandum of Understanding (MOU). ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 19-08 • Supervisor MOU (redlined version) • Professional MOU (redlined version) Page 4 of 4 RESOLUTION NO. OCSD 19-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDA OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE SUPERVISORY AND PROFESSIONAL MANAGEMENT GROUP, FOR FISCAL YEARS 2019/2020, 2020/2021 & 2021/2022 WHEREAS, on October 26, 2016, the Board of Directors ("Directors") of the Orange County Sanitation District (the "District") authorized the General Manager to sign the Memoranda of Understanding with the Supervisory and Professional Management Group (referred hereinafter as "SPMG"), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2016 through June 30, 2019 ("2016 MOU"). WHEREAS, prior to the expiration of the 2016 MOUs on June 30, 2019, SPMG requested to meet and confer regard successor MOUs. WHEREAS, pursuant to Government Code Section 3500, et seq., representatives of SPMG have met and conferred with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, through negotiations the parties agreed that any salary changes would take effect retroactively to July 5, 2019, the first pay period in the current fiscal year; and WHEREAS, the parties have modified the 2019 MOUs between the District and SPMG to reflect the parties' understanding regarding certain terms and conditions, which include: • Duration of the MOUs has been modified and will be for a 3-year term commencing July 1, 2019, and terminating June 30, 2022, as reflected in the Cover Page and Articles 1 and 2 of the MOUs. • Salary Adjustments and Compensation has been modified as set forth below and as reflected in Article 13 of the MOUs: o Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019. o Year 2 — 3.0% Salary Increase, effective the first pay period of July 2020. o Year 3 — 3.0% Salary Increase, effective the first pay period of July 2021. • Holidays has been modified as set forth below and as reflected in Article 16 of the MOUs: o Language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31st of prior year. • Hours of Work has been modified as set forth below and as reflected in Article 17 of the MOUs: o Updated language to reflect that Operations Supervisors and Chief Plant Operators receive a 30-minute paid lunch and are to remain onsite and perform work as necessary. (Supervisor Group MOU only) OCSD 19-08-1 • Insurance has been modified as set forth below and as reflected in Article 20 of the MOUs: o Reopener to discuss establishment of Health Retirement Account (HRA)for all employees. • Retirement has been modified as set forth below and as reflected in Article 25 of the MOUs: o Housekeeping changes to remove outdated language. • Shift Differential has been modified as set forth below and as reflected in Article 26 of the MOUs: o Shift Differential increased from $2.50 per hour to $3.00 per hour. • Leave-of-Absence With Pay has been modified as set forth below and as reflected in Article 27 of the MOUs: o Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. o Housekeeping changes. • Leave-of-Absence Without Pay has been modified as set forth below and as reflected in Article 28 of the MOUs: o Housekeeping changes. • Dues Deductions has been modified as set forth below and as reflected in Article 46 of the MOUs: o New language to establish information provided by OCSD to SPMG regarding members, remittance of dues; article title changed to "New Employee Orientation and Dues Deductions". • Resignation has been modified as set forth below and as reflected in Article 51 of the MOUs: o The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. • Medical Insurance Plan Design Components have been modified as set forth below and as reflected in Appendix A of the MOUs: o Housekeeping changes. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between the District and SPMG for the contract period of July 1, 2019 through June 30, 2022 as outlined herein are hereby approved. OCSD 19-08-2 Section 2. The General Manager is authorized to sign the Memoranda of Understanding with SPMG for the period of July 1, 2019 through June 30, 2022, in a form approved by General Counsel. PASSED AND ADOPTED at a regular meeting of the Board of Directors held August 28, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-08-3 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-08 was passed and adopted at a regular meeting of said Board on the 28t" day of August 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 28t" day of August 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-08-4 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE SUPERVISOR GROUP July 1, 20196 through June 30, 20224-9 8971452.1 OR040-031 TABLE OF CONTENTS ARTICLE 1. RECOGNITION.............................................................................................................................1 ARTICLE 2. DURATION....................................................................................................................................1 ARTICLE 3. SUCCESSOR AGREEMENT........................................................................................................1 ARTICLE4. GROUP ACCESS.........................................................................................................................1 ARTICLE 5. GROUP RIGHTS...........................................................................................................................2 ARTICLE 6. DISTRICT RIGHTS.......................................................................................................................2 ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT.................................................................................2 ARTICLE 8. SMOKE-FREE WORK ENVIRONMENT......................................................................................2 ARTICLE9. -SAFETY........................................................................................................................................3 ARTICLE 10. -DISCIPLINE AND DISMISSAL.....................................................................................................3 ARTICLE 11. -GRIEVANCE PROCEDURE.........................................................................................................4 11.43.1. STEP 1.....................................................................................................................................................5 11.43.2. STEP 2.....................................................................................................................................................5 11.43.4. STEP 3.....................................................................................................................................................5 11.43.5. STEP 4.....................................................................................................................................................5 ARTICLE 12. -PROBLEM SOLVING PROCEDURE...........................................................................................6 ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION....................................................................6 13.3. MERIT PAY...............................................................................................................................................7 13.4. PERFORMANCE MANAGEMENT PROGRAM...................................................................................................7 13.5. DEVELOPMENT PAY...................................................................................................................................7 13.89. SALARY RANGE ADJUSTMENTS..................................................................................................................7 13.940. INVESTMENT INCENTIVE SALARY(IIS)........................................................................................................8 ARTICLE 14. -SEVERANCE PAY........................................................................................................................8 ARTICLE 15. -DEFERRED COMPENSATION....................................................................................................8 ARTICLE 16. -HOLIDAYS....................................................................................................................................8 16.2. FLOATING HOLIDAY...................................................................................................................................9 ARTICLE 17. -HOURS OF WORK....................................................................................................................10 ARTICLE18. ......................................................................................................................................................10 ARTICLE19. ................................................................................................................................................... 10 ARTICLE 20. -INSURANCE..............................................................................................................................10 20.3. MEDICAL INSURANCE............................................................................................................................... 10 20.86. GROUP INSURANCE PREMIUMS................................................................................................................11 20.97. LIFE INSURANCE......................................................................................................................................11 20.10 SHORT TERM DISABILITY.....................................................................................................1 1 20.119. LONG TERM DISABILITY...........................................................................................................................11 20.129. DENTAL INSURANCE................................................................................................................................11 20.134. VISION INSURANCE..................................................................................................................................11 20.14 RETIRNING EMPLOYEES ......................................................................................................12 20.152. HEALTH RETIREMENT ACCOUNT REOPENERRET o Emp ^"«s 12 Page ii 8971452.1 OR040-031 ARTICLE 21. -REIMBURSEMENT ACCOUNT.................................................................................................12 21.2. MEDICAL REIMBURSEMENT ACCOUNT......................................................................................................12 21.3. DEPENDENT CARE ASSISTANCE ACCOUNT...............................................................................................12 ARTICLE 22. -EXTRAORDINARY SERVICES COMPENSATION..................................................................12 ARTICLE 23. -PROBATIONARY PERIOD.......................................................................................................13 ARTICLE 24. -PROMOTIONS...........................................................................................................................14 ARTICLE 25. -RETIREMENT............................................................................................................................14 25.1.1. EMPLOYEES HIRED PRIOR TO SEPTEMBER 21,1979.................................................................................14 25.1.2. EMPLOYEES HIRED ON OR AFTER SEPTEMBER 21,1979 AND BEFORE OCTOBER 1.2010...........................14 25.1.3. EMPLOYEES HIRED ON OR AFTER OCTOBER 1,2010 AND BEFORE JANUARY 1,2013..................................14 25.1.43. EMPLOYEES HIRED ON OR AFTER 9&F9BEPrJANUARY 1,20138............................................................1515 ARTICLE 26. -SHIFT DIFFERENTIAL..............................................................................................................15 ARTICLE 27. -LEAVE-OF-ABSENCE WITH PAY............................................................................................15 27.1. VACATION LEAVE....................................................................................................................................15 27.2. SICK LEAVE............................................................................................................................................16 27.3. JURY DUTY LEAVE..................................................................................................................................18 27.4. WITNESS LEAVE......................................................................................................................................18 27.5. MILITARY LEAVE......................................................................................................................................19 27.6. BEREAVEMENT LEAVE.............................................................................................................................19 27.7. ADMINISTRATIVE LEAVE...........................................................................................................................19 ARTICLE 28. -LEAVE-OF-ABSENCE WITHOUT PAY....................................................................................20 28.3. SUBSTITUTION OF PAID LEAVE.................................................................................................................20 28.4. PERMISSIBLE USES.................................................................................................................................21 28.5. GENERAL PROVISIONS'EAIIF...............................................................................................................2221 286 REri iRN rani o�29-GY FOR ISION WORK RE,ArrD IA"r 23 2�7. GAIarNRhoE WITH' .............................................................................................................................24 ARTICLE 29. -CLASSIFICATION STUDIES.....................................................................................................24 29.34. Y-RATING...............................................................................................................................................24 ARTICLE 30. -DRIVER'S LICENSE..................................................................................................................25 ARTICLE 31. -LAYOFF PROCEDURE.............................................................................................................25 ARTICLE 32. -LIGHT DUTY..............................................................................................................................25 ARTICLE 33. -MEDICAL EXAMINATION.........................................................................................................26 ARTICLE 34. -MILEAGE ALLOWANCE...........................................................................................................26 ARTICLE 35. -ACTING PAY.............................................................................................................................26 ARTICLE36. ......................................................................................................................................................26 ARTICLE37. -PERSONNEL FILES..................................................................................................................26 ARTICLE 38. -BULLETIN BOARDS.................................................................................................................26 ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS........................................................27 ARTICLE 40. -USE OF DISTRICT FACILITIES................................................................................................27 ARTICLE 41. -SCOPE OF BARGAINING.........................................................................................................27 ARTICLE 42. -IMPASSE PROCEDURES.........................................................................................................27 Page iii 8971452.1 OR040-031 42.2. IMPASSE PROCEDURES...........................................................................................................................27 ARTICLE 43. -SEVERABILITY.........................................................................................................................28 ARTICLE44. -UNIFORMS................................................................................................................................28 ARTICLE 45. -SUBSTANCE ABUSE POLICY.................................................................................................28 45.2. DEPARTMENT OF TRANSPORTATION(DOT)REGULATIONS........................................................................28 45.32. DISTRICTS SUBSTANCE ABUSE POLIC 28 ARTICLE 46. -NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS...............................................29 ARTICLE 47. -MAINTENANCE OF MEMBERSHIP.........................................................................................30 ARTICLE 48. -PEACEFUL RESOLUTION OF DISPUTES..............................................................................30 ARTICLE49. ......................................................................................................................................................30 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY.............................................................30 ARTICLE 51. -RESIGNATION..........................................................................................................................30 ARTICLE52. ......................................................................................................................................................30 SIGNATUREPAGE..............................................................................................................................................31 APPENDIXA ...................................................................................................................................................324 Page iv 8971452.1 OR040-031 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE SUPERVISOR GROUP In accordance with the provisions of California Government Code Sections 3500,et seq.,and Resolution No.99-24 of the Joint Boards of Directors,the District's authorized representatives have met and conferred in good faith with representatives of the Supervisor Group. These meetings have resulted in an agreement and understanding to recommend that the employees represented by the Supervisor Group accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by the Supervisor Group as set forth in this Agreement. ARTICLE 1. -RECOGNITION 1.1. This Agreement,effective July 1,20196,is entered into between the Orange County Sanitation District,referred to hereinafter as the"District",and the Supervisor Group, referred to hereinafter as"Group",as a mutual recommendation to the Board of Directors of the District of those wages,hours of work,and terms and conditions of employment. ARTICLE 2. -DURATION 2.1. This Agreement will be binding on the District and the Group when approved and adopted by the District's Board of Directors. This Agreement will terminate on June 30,20224-9. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolutions(EERR),Resolution No. OCSD 99-24. ARTICLE 3. -SUCCESSOR AGREEMENT 3.1. The Group will submit in writing its initial proposal for a successor agreement prior to the expiration date of this Agreement. ARTICLE 4. -GROUP ACCESS 4.1. A Group representative will have access to the District facilities during normal working hours for the purpose of assisting Group employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. 4.2. The Group will provide the Human Resources Department or designee,with a list of Representatives who are authorized to request access under this article,and will notify the Director of Human Resources,or designee,of any changes in that list. 4.3. Group access will not unreasonably interfere with District operations,or with the work of employees in any manner.The District reserves the right to restrict access in certain areas designated confidential or secure. Page 1 of 332 ARTICLE 5. -GROUP RIGHTS 5.1. The Group may designate up to five(5)employees to act as representatives for employees covered by this Agreement. The Group will furnish the Human Resources Department with the names of employees selected as representatives and will update the list as necessary.An alternate representative may be designated to act in the absence of the regular representative.Employees not listed on the roster of representatives provided to the District by the Group may not act as representatives. 5.2. Representatives will not perform non work-related duties on work time without the prior approval of their immediate supervisor.Neither the District nor the Group will interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Group activity. ARTICLE 6. -DISTRICT RIGHTS 6.1. District inherent rights,powers,functions,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making,except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of its constituent departments,commissions and boards;set standards of service, determine the procedures and standards of selection for employment and promotion; establish and implement performance standards;direct its employees;take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted; determine the content of job classifications;classify and reclassify positions;take all necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over its organization and the technology of performing its work. 6.2. District retains all authority and rights conferred on it by law,or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement.District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude the Group from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7. -NONDISCRIMINATION IN EMPLOYMENT 7.1. There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race,color,religion,national origin, ancestry,sex,gender,gender identity,gender expression,sexual orientation,age, physical or mental disability,medical condition,genetic information,marital status,or military or veteran status,or any other lawfully protected class.To the extent required by law or by the District's rules or regulations,this provision of the Agreement will be applied to all members of the Group without regard to any protected classification. ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT 8.1. The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards.In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of Page 2 of 332 District employees and their families,smoking and the use of tobacco(cigarettes, cigars,e-cigarettes["vaping"]and related tobacco products and technologies)is not acceptable within District facilities,and may occur only in areas posted for smoking. ARTICLE 9. -SAFETY 9.1. It is the duty of the District to provide and maintain a safe place of employment.The Group will cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to unsafe practices,equipment,and conditions,and to follow the safety regulations and requirements of the District,and to report any unsafe practices or conditions to their immediate supervisor. An employee will not be required to perform work that is unsafe. ARTICLE 10. -DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the Group:verbal reprimand;written reprimand; suspension without pay;reduction in pay;demotion to a classification with a lower pay grade,or dismissal. 10.2. Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay,reduction in pay,demotion to a classification with a lower pay grade,or dismissal.The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was personally delivered or deposited in the mail,which will be the date of issuance. 10.5. The Notice of Intent will contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action; (3)a copy of the charges and materials upon which the action is based;and, (4) a statement of the employee's right to respond,either verbally or in writing to the person initially imposing the discipline,or to a District management representative with authority to make an effective recommendation on the proposed action;the person to whom any response must be directed,and the fact that such response must be received within ten(10)business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10.6. Prior to the effective date of the proposed disciplinary action,the employee will be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response,the District will notify the employee in writing of the action that will be taken. Such action may not involve discipline more severe than that described in the Notice of Intent;however,the District may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies&Procedures Manual. Page 3 of 332 10.7. Dismissal will be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the influence of drugs or alcohol,theft or misappropriation of District property or funds, fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post-disciplinary hearing.The request must be submitted to the Assistant General Manager or designee,within ten(10)business days following the effective date of the disciplinary action(for suspensions,the effective date will be the first business day following the final day of the suspension).The Director of Human Resources,or designee,will schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager.The hearing officer may not be an employee of the District.The hearing officer will provide a written, advisory decision to the General Manager.The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent.The decision of the General Manager will be final.If the hearing officer upholds the disciplinary action,the employee will pay the full cost and expenses of the hearing officer. 10.9. All disciplinary action documentation,except verbal reprimand documentation,will be placed in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisor's employee files. Supervisors shall inform management staff when a verbal reprimand is to be implemented. If after twenty-four(24)months from implementation there have been no recurrences of similar incidents,the supervisor shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee's personnel file twenty-four (24)months subsequent to the date of the issuance,provided that there has been no recurrence of a similar incident during the period.If the Human Resources Department agrees to remove the written reprimand documentation from an employee's personnel file such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reclassifications,"bumping" associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11. -GRIEVANCE PROCEDURE 11.1. A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2. A grievance may be brought to the attention of the District by an individual employee within the Group or by the Group.The District may not bring a grievance through this Page 4 of 332 procedure.Grievances brought by two(2)or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the Group,be consolidated for the purposes of this procedure. 11.3. Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. 11.4. An employee may be self-represented or be represented by the Group at all steps of the Grievance Procedure unless specifically agreed otherwise by the Group and the employee. The District will provide a copy of all written grievance settlements to the Group. Any reference to days in this article implies business days. 11.4.1. Step 1. An employee who has a complaint will attempt to resolve it with his/her immediate supervisor within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event.The supervisor will attempt to resolve the issues surrounding the complaint,and respond to the employee within ten(10)days. 11.4.2. Step 2. If the grievance is not settled informally at Step 1,it may be submitted in writing to the employee's Department Head,or designee.This request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1. A copy of each written communication on a grievance shall be filed with the Assistant General Manager,or designee. The written grievance must: 11.4.2.1. Identify the specific management act to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of this agreement-that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested;and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Department Head will respond in writing to the employee within ten(10) days after the date the grievance is received. 11.4.4. Step 3. If a grievance is not settled under Step 1 or 2,it may be presented to the Assistant General Manager,or designee,for review and written response.The request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above.A copy of each written communication on a grievance shall be filed with the Assistant General Manager,or designee.The Assistant General Manager,or designee,will respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.5. Step 4. If the grievance cannot be resolved under Step 3,it may be presented to the General Manager within ten(10)days from the date the Step 3 finding was issued.The General Manager,or designee,will respond Page 5 of 332 in writing to the employee within fifteen(15)days after the date the grievance is received.The decision of the General Manager is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance.If an employee is represented by the Group, the Group may designate one(1)employee to present and process the grievance. The employee representative will be given reasonable time off without loss of pay to perform this responsibility.Absence from work will be approved only if it does not cause disruption to District operations.However,if the time requested cannot be provided,an alternate time will be arranged. 11.6. Failure of a supervisor,Department Head or other management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits,it will be considered resolved on the basis of the preceding response.The Human Resources Department may be petitioned in writing to waive the step or time requirements provided sufficient cause exists.Time limits may also be extended at any step upon mutual agreement of the parties.The District agrees to meet face-to- face with the employee at each step of the grievance procedure at the request of the employee. 11.7. Resolution may be agreed upon at any stage of the grievance process.However,the Group will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. -PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2. Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor will review the situation or decision, and provide a written response within five(5)days from the date they were notified of the problem. 12.3. If the problem is not resolved to the employee's satisfaction,the employee may file a written statement concerning the problem with the Human Resources Department within ten(10)days of receipt of the supervisor's decision. Upon request of either party,a meeting will be held to define issues and establish the remedies sought. The employee will be provided a written response within ten(10)days after his/her statement is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Human Resources Department is final. ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION 13.1. Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. Page 6 of 332 13.3. Merit Pay 13.3.1. Step Increase Pay—Group employees are eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1. Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2. Ineligible-Employees who are placed on a Performance Improvement Plan(PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.4. Performance Management Program:The performance management program includes two(2)rating categories(proficient and needs improvement)for performance appraisals. 13.5. Development Pay—Employees under this Agreement are eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.5.1. Education—Effective the f..st^ period in i'1"2n, ^Eligible employees who obtain or who have obtained a graduate degree of approved subjects at an accredited college or university will receive $75.00 per pay period. 13.5.2. Certification/License—Effective the first pay period On July 2016, eEligible employees who obtain or who have obtained a District approved certification or license will receive$15.24 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses. 13.5.3. Grade V Pay—Employees who receive Grade V pay in accordance with the applicable District policy are ineligible to receive Development Pay for their Grade V California Wastewater Treatment Plant Operator Certificate. Employees who possess a Grade V Certificate and do not meet the criteria for Grade V Pay are eligible for Development Pay in accordance with the Development Pay Program Guidelines. 13.6. Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.7. Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.8. Salary Range Adjustments 13.8.1. Effective the first pay period in July 20196,employees under this Agreement will receive salary range adjustments at a flat rate of Page 7 of 332 3.02:5%. 13.8.2. Effective the first pay period in July 20204-7,employees under this Agreement will receive salary range adjustments at a flat rate of 3.02:5%. 13.8.3. Effective the first pay period in July 202149,employees under this Agreement will receive salary range adjustments at a flat rate of 3.02.5%. 13.9. Investment Incentive Salary(IIS) 13.9.1. An additional amount of 4%of base salary will be paid to employees hired or promoted into the Group on or before October 16,2003 in a lump-sum amount each pay period.This provision continues to make employees whole as a result of the Ventura decision.The above percentages will not be counted toward base salary for the purpose of salary surveys. 13.9.2. In addition,employees hired or promoted into the Group on or before October 16,2003 will be paid$1250 annually or$48.08 per pay period in IIS to further encourage savings and investment for retirement. 13.9.3. IIS amounts are applied to annual,retirement,and termination leave payouts for eligible employees. ARTICLE 14. -SEVERANCE PAY 14.1. Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee will be notified in writing two(2)weeks prior to the effective separation date.The employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time,regular employees will be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2. Employees in limited term or part-time positions,probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE 15. -DEFERRED COMPENSATION 15.1. Employees may participate in the District approved deferred compensation plan, subject to IRS requirements,and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. -HOLIDAYS 16.1. The days listed below are observed by the District as holidays.Employees will receive holiday pay if their entire scheduled work shifts immediately preceding and following the holiday are in a paid payroll status,meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday,the Page 8 of 332 employee will be paid at the employee's regular rate of pay for the holiday,and will also receive pay at the rate of one and one half(1.5)times his/her regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay,if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day. Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). Holidays New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday— 16.2. Floating Holiday: Employees may elect one(1)day during each year as a"Floating Holiday."New employees shall be granted a"Floating Holiday"on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent list Quarter(January-March) 100% 2nd Quarter(April-June) 75% 3'd Quarter(July-September) 50% 4th Quarter(October-December) 0% 16.3. Employees must use the"Floating Holiday"within the year it is granted.Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. 16.4. Part-time employees are eligible for holiday benefits on a pro-rata basis as set forth in applicable District Policy. Page 9 of 3­ ARTICLE 17. -HOURS OF WORK 17.1. The work schedule for full-time employees will be eighty(80)hours per biweekly pay period,normally scheduled in shifts of five(5)eight 8-hour days each week,four(4) nine-9-hour days each week and one(1)additional 8-hour day on alternate weeks (9/80),four(4)ten 10-hour days each week(8/80),or three(3)twelve 12-hour days each week and one(1)additional 8-hour day on alternate weeks(7/80).However, with the approval of the employee's supervisor,employees may be allowed to flex their schedule within the pay period provided that the business needs,work flow,and customer service needs of the District are met. 17.1.1. Operations Supervisors and Chief Plant Operators will receive paid thirty(30) minute meal periods during which time Operations Supervisors and Chief Plant Operators will remain on District premises and perform any work as necessary. 17.2. The District may,at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee,which may be waived by the employee per written request. 17.2.1. The 30-day notice will not be applicable if the change is a result of a reasonable accommodation. ARTICLE 18. (This article intentionally left blank) ARTICLE 19. (This article intentionally left blank) ARTICLE 20. -INSURANCE 20.1. The District will provide healthcare and welfare insurance benefits. 20.2. All insurance coverage will become effective on the first day of the month following date of hire,regardless of hire date.An open enrollment period will be held annually. 20.3. Medical Insurance 20.3.1. The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan,a Preferred Provider Organization(PPO)medical insurance plan,and a High Deductible Health Plan(HDHP). 20.4. Regular,full-time employees The District will contribute 90%of employee only premiums for the HMO medical health plans and 80%of employee only premiums for the PPO medical plan. The District will contribute 80%of the employee+1 dependent and full family premiums for the HMO or PPO medical plans. Any change in insurance rates will be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District sponsored health insurance plan,the parties agree to meet and confer as to changes in the plan. 20.5. Regular,part-time employees Part-time employees are eligible for medical insurance benefits on a pro-rata basis as set forth in the applicable District Policy. Page 10 of 332 20.6. The HDHP will be accompanied by a Health Savings Account(HSA)to pay for qualified medical expenses.OCSD will use a portion of the cost savings in premiums to fund the HSA accounts during active employment only.The HSA will be funded with the savings generated annually by calculating the difference between the District's share of the PPO and HDHP premiums.Exact HSA account funding will be calculated annually,prior to open enrollment,in an amount up to the difference in deductibles,not to exceed the District's aforementioned annual premium cost savings. 20.7. The District may reopen negotiations at any time during the term of this agreement to address the impact of the Affordable Care Act(ACA). 20.8. Group Insurance Premiums 20.8.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.9. Life Insurance 20.9.1. The District will pay the full premium for$50,000 term life insurance on each employee. 20.10. Short Term Disability 20.10.1. The District will provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to the maximum weekly amount provided through California's State Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. 20.11. Long Term Disability 20.11.1. The District will provide a non-work related,long-term disability indemnity plan that pays two-thirds of the employee's rate of pay in effect at the time of such disability,not to exceed$5,000 per month,following a 90- day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.11.2. For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older,the maximum period of payment is specified. The specified periods and additional information about coverage is included in OCSD's long term disability plan contract accessible on the intranet. 20.11.3. No combination of disability or sick leave pay will result in more than an employee's regular rate of pay.Employees may not receive short-term and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at their own expense. 20.12. Dental Insurance 20.12.1. The District will contribute 80%of employee only and full family premiums for dental insurance. 20.13. Vision Insurance Page 11 of 3 20.13.1. The District will provide a vision insurance plan for regular,full-time employees and eligible dependents.Part-time employees are eligible for vision insurance benefits on a pro-rata basis as set forth in applicable District Policy. 20.14. Retiring Employees 20.14.1. The District will pay,for employees hired prior to July 1, 1988,two and one-half(2.5)months'premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District medical plan. 20.14.2. In the event the District adds additional optional insurance plans,the District's share of the premium will be the same as for existing plans as set forth above. In the event the District changes underwriters for existing insurance plans,the District's share of the premium will be the same as for existing insurance plans as set forth above. 20.14.3. The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every full ear of continuous service up to a _ — Commented[BS1]:Marc and SPMG team-We did not maximum of 25 years or$250 per month. discuss this at the table,but we have updated this language (house keeping)to align with OCSD's current practice.Are 20.15. Health Retirement Account(HRA)Reopener: The District and the Group agree you OK with this update? to reopen this Agreement to discuss HRA plan design and funding mechanism options, including District and/or employee funding,understanding the District is not making any commitment to District funding. ARTICLE 21. -REIMBURSEMENT ACCOUNT 21.1. Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements.The options available under the flexible benefits program are listed below.This is a brief overview of the different options.For complete information regarding Flexible Spending Accounts employees must refer to the plan booklet available in the Human Resources Department. 21.2. Medical Reimbursement Account 21.2.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself/herself for payment of health care costs not otherwise covered by his/her medical insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself/herself for child care expenses or day care for a disabled dependent ARTICLE 22. —EXTRAORDINARY SERVICES COMPENSATION 22.1. Employees in the Group are exempt from the overtime provisions of the Fair Labor Page 12 of 332 Standards Act. However,when services are required beyond what is normally expected of a position in this Group,employees will be eligible to receive additional compensation,as defined herein,for performing extraordinary services. Extraordinary services shall be defined as: 22.1.1. The General Manager declares an emergency.A declaration of an emergency is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11—Grievance Procedure or Article 12—Problem Solving Procedure. 22.1.2. The General Manager determines that there exists a critical event.A critical event is defined as work of a prolonged nature;involving non- emergency related services;major special projects;or when a substantial effort must be expended to meet a compliance date or scheduled deadline.The designation of a critical event is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement,including Article 11 — Grievance Procedure or Article 12—Problem Solving Procedure. 22.1.3. Written approval of a critical event must be obtained in advance of the work to be performed.The authorization shall set forth the work to be accomplished,the anticipated start and end date and those employees expected to participate in the work.The Department Head,or designee, will be responsible for determining the actual start and end date as well as those who actually work the event. 22.2. Upon the declaration of an emergency or upon the designation of a critical event, employees will be compensated as follows: 22.2.1. Compensation will be restricted to those employees that are assigned to the event,independent from which department they are assigned. 22.2.2. For emergencies,compensation will occur for all hours outside the employee's regularly scheduled work shift.For critical events, compensation will occur for all hours after an initial 10 hours of uncompensated time has elapsed. 22.2.3. Employees in the Operations Supervisor classification will receive additional compensation at one and one-half(1.5)times their regular rate of pay.All other classifications shall receive straight time compensation. ARTICLE 23. —PROBATIONARY PERIOD 23.1. All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following six months of employment without a break in service.Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position,and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.2. Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may Page 13 of 332 be released during his/her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. 23.3. Employees who are reassigned or laterally transferred will serve a probationary period of six months. The"probationary period"shall not divest an employee of his/her property right in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. —PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position will be filled as an open or promotional recruitment.Whenever the District intends to fill a position by promotion,the District will post the opportunity for a minimum of ten(10) business days. Employees must apply during the period of posting. Notices will be posted on the District's intranet. 24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective date of the promotion. 24.3. At any time during the promotional probationary period,an employee may be returned to his/her previous position.The promotional probation period may be extended by mutual agreement between the employee and District management for up to ninety(90)days. 24.4. If an employee is promoted during his/her initial probationary period,the period will be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.5. Promoted employees will receive the equivalent of a one(1)step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. —RETIREMENT 25.1. The District will continue participation in the Orange County Employees Retirement System(OCERS),wherein all full-time employees and part-time employees scheduled to work twenty(20)hours per week or more are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1. Employees hired prior to September 21, 1979: The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12)months average earnings,past and future service. Thep t,vilstrac�..,;e^+'nue to pay 4.5 +�Iowa,., rds the employee's en+rdh--+k, +.,nrEoc fer these employees yihe elentPd+e make a nm- torne decision to rpmamnn+he Plan G program. 25.1.2. Employees hired on or after September 21, 1979 and before October 1, 2010:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive Page 14 of 332 thirty-six(36)months average earnings,past and future service. 25.1.2.1. The District will continue to pay 3.5%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.3. Employees hired on or after October 1,2010 and before January 1, 2013: The District will contract with OCERS to provide the 1.667%@ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six (36)months average earnings,past and future service. 25.1.3.1. The District will pay 0%of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1.4. Employees hired on or after January 1,2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA) based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.4.1. The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2. All monies actually contributed into the retirement system by an employee will be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26. —SHIFT DIFFERENTIAL 26.1. Employees who are assigned to work a night shift that consists of 50%or more of the hours between 6:00 p.m.and 6:00 a.m.and who actually work that shift will receive a shift differential of$32.950 per hour. ARTICLE 27. —LEAVE-OF-ABSENCE WITH PAY 27.1. Vacation Leave 27.1.1. Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 Page 15 of 332 Years of Service Hours-Biweekly Hours-Annual In year 20 and over 7.69 200 27.1.2. Part-time employees accrue vacation leave on a pro-rata basis as set forth in applicable District Policy. 27.1.3. Vaeation leave beg nc after an employee hac n plated twenty sox(26) yokq of enntin--e„c. ;PwdrA After his/her first twenty six(26)weeks of seFV'Ge,hie./her arGeunt,..ill he eredited with fort.(40)hey F6 After that Vacation leave may only be utilized in increments of one- ug arterW hour or more. Vacation leave is accrued for all paid hours,including hours actually worked and hours in a paid-leave payroll status. 27.1.4. When unpaid absences occur,vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period,and is applicable to all types of leave,whether legally protected or not. 27.1.5. Annual Payoff.Employees may have a maximum accumulation of two hundred(200)hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of two hundred(200)hours,it must be used prior to said December date,all other remaining hours in excess of two hundred(200) will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2. Sick Leave 27.2.1. Definition. Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury, or pregnancy:to attend to the illness or injury of a family member as hereinafter defined:or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a).Temporary employees shall receive sick leave benefits as required by State law. 27.2.2. Method. -Sick Leave Accrual. Full-time employees hired prior to November 27, 1981,accrue paid sick leave at the rate of three and one- half(3.5)hours for each biweekly pay period of continuous service; ninety-one(91)hours per year. Full-time employees hired on or after November 27, 1981,accrue paid sick leave at the rate of three(3.0) hours for each biweekly pay period of continuous service;(seventy-eight (78)hours per year),beginning with the first day of employment. 27.2.3. Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable District Policy. 27.2.4. When unpaid absences occur,sick leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period,and is applicable to all types of leave,whether Page 16 of 332 legally protected or not. 27.2.5. Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending inof October at their current hourly rate according to the following payoff schedule. Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.6. Employees who terminate for any reason other than retirement or death will be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty(20) years or more of service will be paid at the one hundred percent(100%) rate for all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7. Permissible Uses. Sick leave may be applied only to: 27.2.7.1. Absence due to illness,injury or pregnancy of an employee. 27.2.7.2. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. 27.2.7.3. Absence for the care of the employee's father,father-in-law, mother,mother-in-law,brother,sister,husband,wife, domestic partner,child,child of domestic partner, grandparent,grandchild,legal guardian,or family member with whom the employee resides. 27.2.7.4. Absence due to a job-related injury. 27.2.7.5. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). 27.2.8. General Provisions. To qualify for sick leave pay,the employee must notify the District at or in advance of the time the employee is scheduled to report for duty.Minimum charge to the employee's sick leave account will be one ug arterAialf(0.25)hour increments. 27.2.9. The Human Resources Department and department management will be responsible for controlling the abuse of the sick leave privilege.For absences of ten(10)consecutive working days or more,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to the Human Resources Department. Upon return to work,a written doctor's release must be submitted to the Human Resources Department.For absences of one(1)or more working days in an unpaid status,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be Page 17 of 332 submitted to the Human Resources Department. 27.2.10. If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Act("FMLA")or the California Family Rights Act("CFRA"),the certification requirement will comply with the provisions of these Acts. 27.2.11. Sick Leave Incentive Plan. If the average sick leave usage of employees in the Group is under forty(40)hours per year,calculated on annualized actual time off from October to October,based on the last pay periods ending in October,exclusive of catastrophic illness or injury requiring absence in excess of two hundred(200)hours or industrial injury leave in excess of eighty(80)hours,the annual payoff for unused sick leave will be as follows: Accrued Sick Leave Hours Rate of Payoff 0—100 15% 101 —240 45% 241 —560 60% Over 560(mandatory) 75% 27.3. Jury Duty Leave 27.3.1. Any full-time,including probationary,employee who is called for jury duty will be entitled to his/her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2. Prior to jury duty service,employees must complete an online time off request form.To be entitled to receive regular pay for such jury leave, employees must report for work during their regularly scheduled work shift when they are relieved from jury duty service,unless there is less than one-half('/z)of a regular shift remaining.Employees are not compensated for jury duty occurring on scheduled days off. 27.3.3. An employee serving jury duty must obtain an attendance slip from the court to be submitted to his/her supervisor with his/her timesheet in order to be eligible for regular pay for those hours of absence due to jury duty. 27.4. Witness Leave 27.4.1. Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his/her presence as a witness,except in a matter wherein he/she is named as a defendant or plaintiff or as an expert witness,will, upon approval of an online time off request,be entitled the time necessary to comply with such subpoena. An employee's regular pay will be reduced by the amount of witness leave pay received,exclusive of mileage. 27.4.2. An employee so subpoenaed must submit a copy of the subpoena to Page 18 of 3-2 his/her supervisor and complete an online time off request form in order to be eligible for pay for such absence.To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one(1)hour or more prior to and/or upon completion of each day's service,exclusive of travel time. 27.5. Military Leave 27.5.1. A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the date when it is desired to begin the leave-of-absence and the date of anticipated return.A copy of the orders requiring such military service will be submitted with the request. 27.5.2. Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 will govern military leave.In general,current law provides that an employee having one(1)year or more service with a public entity is entitled to military leave with pay not exceeding thirty(30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment.An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use vacation,administrative leave,or personal leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations.Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6. Bereavement Leave 27.6.1. Any full-time employee,whether probationary or regular,shall receive a maximum of thirty-six(36)hours off with pay for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member. Immediate family member is defined as the employee's father,step-father,father-in- law,mother,step-mother,mother-in-law,brother,step-brother,sister, step-sister,husband,wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner,grandchild,grandparent, foster parent,foster child,legal guardian,or any family member with whom the employee resides.Employees must submit an online time off request form for approval by their supervisor. Employees may be required to furnish evidence satisfactory to the District of the family member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six(6)months to the Director of Human Resources or designee,who has the discretion to grant or deny such requests. Any denial of a request for the use of bereavement leave after the designated six(6) months is not grievable or otherwise subject to appeal. 27.6.2. Part-time employees are eligible for bereavement leave on a pro-rata basis as set forth in applicable District Policy. 27.7. Administrative Leave Page 19 of 3 3 27.7.1. Effective the first pay period in July,regular full-time employees in the Group shall be granted forty(40)hours of Administrative Leave. Employees who are hired or promoted into the Group shall be granted Administrative Leave on a pro-rata basis per the following schedule: Hire Date Percent July-September 100% October-December 75% January-March 50% April-June 0% 27.7.2. Administrative Leave will be administered in accordance with the following guidelines: 27.7.2.1. Administrative Leave may be used in one-quarter-(0.25)hour increments. 27.7.2.2. Any unused Administrative Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 27.7.2.3. Any unused Administrative Leave,within the fiscal year granted,is not subject to cash out or eligible for any mandatory payout. 27.7.2.4. Employees who cease to be part of the Group for any reason will forfeit any unused Administrative Leave. ARTICLE 28. —LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of the District to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below,employees will not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 28.2. Using the prescribed forms,approved by District management,any full-time, including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250)hours of service,may be granted an FMLA or CFRA leave-of-absence without pay,not to exceed twelve(12)weeks in a rolling twelve(12)month calendar period.A"rolling"twelve(12)month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five(5)consecutive working days, or for absences of ten(10)working days or more when using paid sick leave accruals. 28.3. Substitution of Paid Leave. Page 20 of 3 3 28.3.1. Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition will be required to use all accruals before unpaid leave is granted. 28.3.2. Vacation,administrative leave or personal leave accruals may be used for the care of the employee's father,step-father,father-in-law,mother, step-mother,mother-in-law,brother,step-brother,sister,step-sister, husband,wife,domestic partner,biological child,adopted child,step- child,foster child,legal ward,child of a domestic partner,grandchild, grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4. Permissible Uses 28.4.1. FMLA Leave. FMLA leave may be used for: 28.4.1.1. The birth of a child or to care for a newborn of an employee; 28.4.1.2. The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3. The care for the employee's father,step-father,father-in-law, mother,step-mother,mother-in-law,brother,step-brother, sister,step-sister,husband,wife,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent,legal guardian, or any family member with whom the employee resides,who has a serious health condition,as defined in the Act; 28.4.1.4. The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for the employee's family member or"next of kin" service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to 26 weeks of unpaid leave during a single 12-month period. 28.4.2. CFRA Leave. CFRA Leave may be used for: 28.4.2.1. The same purposes as FMLA Leave,including the care of a domestic partner or child of a domestic partner,and will run concurrently with FMLA leave. 28.4.2.2. CFRA Leave may not be used for 1)an employee's incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3) to care for a family member or next of kin with a serious injury Page 21 of 332 or illness incurred in the line of duty.However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28.5. General Provisions 28.5.1. Requests for FMLA and CFRA Leave 28.5.1.1. Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with the Department of Labor(DOL)regulations. 28.5.3. Medical and Dental Premiums 28.5.3.1. During FMLA and CFRA Leave,the District will pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee will be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment, in full,within forty-five(45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.4. Reinstatement 28.5.4.1. Upon expiration of FMLA or CFRA Leave,the employee will be reinstated to the same or a comparable position unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,lay-off),in which case the District's obligation to continue health and dental or other benefits will cease. 28.5.5. District Employment of Spouses/Domestic Partners 28.5.5.1. FMLA Leave Married employees will be limited to a combined total of twelve(12)weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.5.5.2. CFRA Leave Married employees and employees in domestic partnerships will be limited to a combined total of twelve(12) weeks CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.5.6. General Leave 28.5.6.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to personal matters,or for FMLA or Page 22 of 332 CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2. During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.6.3. Failure to submit a monthly co-payment,in full,within forty-five (45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.7. Return to Work Policy 28.5.7.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work,placement in an alternative position,if available,will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. Such time off will be without pay;however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.5.7.3. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an alternative position,or the employee is not willing to return to work,the employee will be re-classified as medically disqualified and not permitted to work. Thereafter,the employee will be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.5.8. Bridge of Service 28.5.8.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within the District within one(1)year,the District will bridge the employee's service date.Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 28.5.9. Failure to Return to Work 28.5.9.1. If,upon the expiration of FMLA or CFRA Leave,or any District- Page 23 of 3 approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee will be considered to have automatically resigned from his/her position.In such cases,the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.5.10. Compliance with Law 28.5.10.1.These Leave-of-Absence provisions will be interpreted and applied in a manner that is consistent with the provisions of FMLA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied, the provisions of law will govern. ARTICLE 29. --CLASSIFICATION STUDIES 29.1. The law requires meet and confer over changes to wages,hours,and terms and conditions of employment;the District is committed to complying with the law. 29.2. An employee who believes his/her position is not properly classified may submit a written request to the Department Head asking that a classification study be conducted.The Department Head will acknowledge the request in writing and review the request for accuracy,and forward it to the Human Resources Department for consideration and response.Classification studies will only be conducted twice a year in November and during the budget process;therefore,classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule which normally requests all information by the end of February.District management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.2.1. All classification study findings regarding existing classifications are subject to approval by the General Manager;findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study will be implemented in the first pay period immediately following the completion of the study unless the recommendations require action to be taken by the Board of Directors prior to implementation.In such event, the recommendations will be implemented in the first pay period immediately following authorization by the Board. 29.3. Y-Rating 29.3.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification,the salary of the incumbent of that position will remain unchanged. 29.3.2. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to the District's staffing requirements,organizational structure or"bumping"associated with layoffs.Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay(unless otherwise authorized by the General Manager). Page 24 of 332 29.3.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. ARTICLE 30. -DRIVER'S LICENSE 30.1. Employees who are required by the District to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges.Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is unable to perform his/her regular duties and responsibilities notifies the District in a timely fashion,an attempt will be made to place the employee in an equal or lower level position for which he/she is qualified.Placement in the range of the new classification is subject to District's management discretion. 30.3. The District will continue to pay the license renewals and physical examination costs of Class A and B licenses that are specifically required by the District. ARTICLE 31. -LAYOFF PROCEDURE 31.1. If,in the sole discretion of District's management,personnel reductions are necessary,layoff order and recall lists will be developed based upon job classification,priority of function,job performance,individual qualifications and seniority.The Group and employees subject to lay off will be provided with at least two(2)weeks notification in writing whenever possible. 31.2. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified.Such request must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice.The salary of an employee who voluntarily demotes will be unchanged,except that it may not exceed the top step of the range for the lower level classification. 31.3. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two(2)years from the date of layoff.Individuals will be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled.When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five(5)days,or the offer will be made to the next person on the list.An individual who either does not respond or refuses three(3)consecutive offers will have his/her name removed from the list. 31.4. All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. ARTICLE 32. -LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions.An employee Page 25 of 332 assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. -MEDICAL EXAMINATION 33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers his/her own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related.Any examination under this provision will be conducted on District time and at District expense.An employee may submit an independent medical opinion regarding his/her condition and addressing his/her ability to competently perform the duties of the position.This information will be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. -MILEAGE ALLOWANCE 34.1. Approved use of a personal vehicle for District business will be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 35.1. Employees who are assigned by District management to perform the duties of an open,budgeted position at a higher level for a period of at least one hundred(100) consecutive hours will be eligible for a one(1)step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the 101st hour,and continues until the assignment ends or the six (6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted.Requests for acting pay require the approval of the Department Head and the Human Resources Department. The one hundred(100)-hour eligibility period may be waived at the discretion of the General Manager.Time served in higher level assignments shall be credited as qualifying experience for promotional purposes. ARTICLE 36. (This article intentionally left blank.) ARTICLE 37. -PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment.Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Human Resources Department. It is the responsibility of each employee to keep the personal information in his/her files current,including home address,telephone number and person to contact in an emergency. ARTICLE 38. -BULLETIN BOARDS 38.1. The Group may use the bulletin boards located at Plant 1 and Plant 2 which are designated for use by employee Groups to post notices to District employees provided that:(a)no controversial matter which is critical or derogatory of the District, Page 26 of 3-2 its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the Group will remove its notices after a reasonable length of time;and(d)only a reasonable number of notices will be posted. ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1. A maximum of three(3)employees covered by this Agreement and appointed by the Group will be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Group will provide the Human Resources Department with the names of employees requiring meet and confer release time in advance of the meet and confer session.The release time will be granted provided that the needs of the District permit the time away from assigned work. ARTICLE 40. -USE OF DISTRICT FACILITIES 40.1. District facilities may be used by the Group with prior notice to the Human Resources Department for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations.The Group agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. -SCOPE OF BARGAINING 41.1. The District and the Group acknowledge that during the negotiations which resulted in this Agreement,each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation.Therefore,the District and the Group,for the term of this Agreement, except as otherwise provided herein,each voluntarily and unqualifiedly waive the right,and each agrees that the other will not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. -IMPASSE PROCEDURES 42.1. If either the District or Group declares that an impasse exists in the meet and confer process,the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of its position on all issues.An impasse meeting will be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.1.1. Review the position of the parties in a final effort to reach agreement on a memorandum of understanding,and if the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 42.2. Impasse Procedures are: 42.2.1. Mediation:If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation,nor take any public position at any time concerning the issues. 42.2.2. Fact-Finding: Whether the parties submit the dispute to mediation or not, the Group may request that the parties'differences be submitted to a Page 27 of 332 factfinding panel as soon as practicable.The cost of a fact finder and other mutually incurred costs will be mutually shared by the District and Group. 42.2.3. Board Actions:If the parties fail to resolve the impasse,the dispute will be sent to the District Board of Directors for resolution.Each party will submit its written proposal on all issues to the Board.The Board may take such action to resolve the impasse as it deems appropriate to the public interest.Any action taken by the Board to resolve the impasse will be final and binding. ARTICLE 43. -SEVERABILITY 43.1. Notwithstanding any other provisions in this Agreement,in the event that any article, section or subsection of this Agreement will be declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and the Group will meet and confer on the affected article,section or subsection.In such event,all other articles, sections or subsections of this Agreement not affected will continue in full force and effect. ARTICLE 44. -UNIFORMS 44.1. The District will provide and maintain ten(10)uniform pants and shirts,which may include the name of the employee and District seal,at no cost to employees whose duties require that they wear uniforms.The District will also provide lab coats as required by the lab manager. 44.2. All employees who are issued uniforms must wear them during the performance of their regular duties.Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings.Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. -SUBSTANCE ABUSE POLICY 45.1. The District's Substance Abuse Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy.The District may adopt or implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the Group prior to implementation. 45.2. Department of Transportation(DOT)Regulations 45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver's license requirements of the Department of Transportation,Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3. District's Substance Abuse Policy: Page 28 of 3 2 45.3.1. Any employee may be subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. —NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS 46.1. New Employee OrientationP' Group informational paGket will be provided te these employees helding Greup •nfnrm^tinn,^GFe p Payroll Ded u^tinn n--thnri7^tinn Form and^tr^nSmiURI mating: 46.1.1. The Group will be allowed up to one(4)half-hour each orientation session to communicate with Group-represented classifications to explain the rights and benefits as set forth in this Agreement.Human Resources staff will send to the Group representative,or designee,a notice of each new employee orientation session.The notice will be provided w4h-at least 10 days prior to the session,or as soon as practicable,and will include pertinent session details.^A4anagement paFtiGipatien; 46.1.2. The District will hold new employee orientation sessions on a regular basis or at least on a quarterly basis,given there are new Group- represented classifications.If there are no new hires in the Group- represented classifications for a scheduled session,the District will notify the Group as soon as possible in advance of the session.The epee belongs to^^InnSifi^ntinn represented by the(rein) 46.1.3. Human Resources staff will provide the Group with an electronic copy of the name,home address,personal email address,and personal cell phone number of all new Group-represented employees within 30 days of hire. all^ nleyee.in the GFeup;and 46.1.4. Human Resources staff will provide the Group with an electronic copy of the name,home address,personal email address,and personal cell phone number of all Group-represented employees at least every 120 days Th^^ nl .i^^m mnl^t^the(_romp Payroll-Ded u^tir.n A-Ahnri7-.;t',gn Fnrm and si-br.it it to the H,in.;;n Rt-se irn^c Departrn^nt if hnlshp y i ld like to inn the n 46.2. Dues Deductions 46.2.1. Remittance of the aggregate amount of all dues and other proper deductions made from the salaries of employees covered hereunder shall be made to AFSCME along with an electronic report detailing the employee's name,employee number,bargaining unit,classification title and pay rate(whinh may be title� m^thin^else like level step) work location,work phone,work e-mail,hire date, home address,home phone,home e-mail,cell phone,birthdat^ ^ender,^thni^iit., and deduction amount(s)and tvpe(s). 46.1 5-.46.2.2. The Group shall indemnify,defend and hold the District harmless against any liability from any claims,demands,or other action related to the District's deduction of Union Dues,including claims related to the Union's use of monies collected under these provisions.Thn District will and„^t from eReh r ..I^r Page 29 of 332 paycheck andr it t Gr oup rn the dues,n e initiation fens and asspssmpnts fnr each must be filed by the end of the pay period prier to the peried fOF WhiGh thi,deduption requested. 2. The Di6tFiGt Will pFevide the Greup a quartedy list ef the Harnes ef these employees • for...ham i4 has ma.dc.doll etmens in addition, ...the District ill c ..male the Ramp,,;of new nleyees and then of employees whn have terminated...ithin the reperting period. ARTICLE 47. -MAINTENANCE OF MEMBERSHIP 47.1. All employees who are members of the Group,or who become members of the Group,shall remain members of the Group,except that any employee may withdraw his/her membership by written notice to the Group and the District during the ten day period between ninety(90)and one hundred(100)days preceding the expiration of this agreement. ARTICLE 48. -PEACEFUL RESOLUTION OF DISPUTES 48.1. During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it will not lockout employees in this Group,and Group agrees that it will neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in part from the full,faithful and proper performance of their duties of employment. ARTICLE 49. (This article intentionally left blank) ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1. The District's Workplace Violence and Weapons Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy. ARTICLE 51. -RESIGNATION 51.1. Voluntary written resignation of employment with the District is automatically deemed irrevocable after seventy-two(72)hours from the District's receipt of the resignation except by approval of the Human Resources Department. The District may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. ARTICLE 52. (This article intentionally left blank) Page 30 of 332 SIGNATURE PAGE 201 —20 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES OF THE SUPERVISOR GROUP Executed: SUPERVISOR GROUP ORANGE COUNTY SANITATION DISTRICT Steve Koffroth,Business Representative, Laura Drottz Kalty,G#ie�Lead Negotiator AFSCME Council 36(Affiliate of SPMG) I Srhrn'dt Business Representative. URG Luis Schmidt, Business Representative, AFSCME Council 36(Affiliate of SPMG Marc Brown,Principal Staff Analyst Celia Chandler,Director of Human Resources Angela Brandt,Accounting Supervisor Laura Maravilla,Human Resources&Risk Manager Resources Analyst Bob Bell,Maintenance Supervisor Andrew Nau.Human Resources Supervisor I p a Marayallp H m n Re o- A R' k SuperviserMana Bran Bmnqman,Cnq n q Supervise. Page 31 of 332 Brian Bingman,Engineering Supervisor janine Agu4afThys DeVries,PF+aeiyai SenierPrincipal Human Resources Analyst Laurie e Stephanie Barron,Senior Human Resources Analyst APPENDIX A Medical Insurance Plan Design Components1,2 CURRENT STATE PPO High Deductible Health Plan Plan Design Component In-Network Non-Network In-Network Non-Network Deductible $150/$450 $1,3001 3 5 0/$2-, 0 2� 000 Annual Out-of- $2,000 $3,000 $2,500 $5,000 Pocket Max/Member Annual Out-of- $4,000 $6,000 $5,000 $10,000 Pocket Max/Family Major Medical Physician Office Visit $15/Visit 30% 10% 30% Specialist Office Visit $15/Visit 30% 10% 30% Preventive Care No Charge 30% No Charge 414t-C.�•'^'^^'30% 30%(up to Inpatient Hospitalization 10% 30%+$500 10% $1,000/day,non- emergency)+ 500 Outpatient 10% 30% 10% 30%(up to Hospitalization/Surgery $350/admit) $100/Visit+10% Emergency Room $100/Visit+10% (copav waived if admitted) (copay waived if admitted) $ o it (waived if adR4tted) Infertility Benefits Not Covered Not Covered Urgent Care $15/Visit 30% 10% 30% Chiropractic $15/Visit 30% 10%/Visit 30%/Visit (30 visits/year) (30 visits/year) (30 visits/year) (30 visits/year) Opt-Out from Plan Yes Yes Yes Prescription Drugs Generic/Brand/ Generic/Brand/ Generic/Brand Non-Preferred Brand Non-Preferred Brand Page 32 of 3 $5/$20/$35 $10/$25/$40 after Retail deductible (30-day supply) Not Covered Not Covered (30-day supply) $5/$40/$70 $20/$50/$80 after Mail Order deductible (90-day supply) Not Covered Not Covered (90-day supply) Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions.The information contained in Summary Plan Descriptions(SPDs)and Evidence of Coverage EOC booklets prevails. Medical Insurance Plan Design Components1,2 CURRENT STATE Plan Design Component Anthem HMO Kaiser HMO Kaiser Bronze Deductible None None $5,000Individual $10,000 Family Annual Out-of- $1,500 $1,500 $6,250 Pocket Max/Member Annual Out-of- $3,000 $3,000 $12,500 Pocket Max/Family Major Medical Physician Office Visit $15/Visit $15/Visit $60/Visit Specialist Office Visit $15/Visit $15/Visit $70/Visit Preventive Care No Charge No Charge No Charge Inpatient Hospitalization $100 Admit $100 Admit 30% Outpatient $15 Co-pay o Hospitalization/Surgery $50 Admit (per procedure) 30/Emergency Room $100/Visit $100/Visit $300/Visit (waived if admitted) (waived if admitted) (waived if admitted) Infertility Benefits Status Quo Status Quo Not Covered Urgent Care $15/Visit $15/Visit $60/Visit Chiropractic $19-W Visit * $10/Visit Not Covered (8&60 visits/year)_ (30 visits/year) Opt-Out from Plan Yes Yes Yes Prescription Drugs Generic/Brand/Non- Generic/Brand Generic/Brand Preferred Brand $5/$20/$35 $5/$20 $15/$50 medical Retail 30-day supply) 30-day supply) deductible applies ( y Pp Y) ( y pp Y) (30-day supply) Page 33 of 332 $5/$40/$70 $5/$20 $30/$100 medical Mail Order deductible applies (90-day supply) (100-day supply) deductible supply) Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions.The information contained in Summary Plan Descriptions(SPDs) and Evidence of Coverage(EOC)booklets prevails. For chiropractic services through the American Specialty Health(ASH)Network,the copay is$10 with a maximum of 30 visits in a calendar year for covered services. Page 34 of 332 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE PROFESSIONAL GROUP July 1, 20196 through June 30, 20224-9 8971409.1 OR040-031 TABLE OF CONTENTS ARTICLE 1.-RECOGNITION.................................................................................................................................1 ARTICLE2.-DURATION........................................................................................................................................1 ARTICLE 3.-SUCCESSOR AGREEMENT............................................................................................................1 ARTICLE 4.-GROUP ACCESS.............................................................................................................................1 ARTICLE5.-GROUP RIGHTS...............................................................................................................................2 ARTICLE 6.-DISTRICT RIGHTS...........................................................................................................................2 ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT......................................................................................2 ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT...........................................................................................2 ARTICLE9.-SAFETY.............................................................................................................................................3 ARTICLE 10. -DISCIPLINE AND DISMISSAL.....................................................................................................3 ARTICLE 11. -GRIEVANCE PROCEDURE........................................................................................................4 11.43.1. STEP 1.....................................................................................................................................................5 11.43.2. STEP 2.....................................................................................................................................................5 11.43.4. STEP 3.....................................................................................................................................................5 11.43.5. STEP 4.....................................................................................................................................................5 ARTICLE 12. -PROBLEM SOLVING PROCEDURE...........................................................................................6 ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION.....................................................................6 13.3. MERIT PAY...............................................................................................................................................7 13.4. PERFORMANCE MANAGEMENT PROGRAM...................................................................................................7 13.5. DEVELOPMENT PAY...................................................................................................................................7 13.89. SALARY RANGE ADJUSTMENTS..................................................................................................................7 13.94-0. INVESTMENT INCENTIVE SALARY(IIS)........................................................................................................8 ARTICLE 14. -SEVERANCE PAY.......................................................................................................................8 ARTICLE 15. DEFERRED COMPENSATION...................................................................................................8 ARTICLE16. -HOLIDAYS...................................................................................................................................8 16.2. FLOATING HOLIDAY...................................................................................................................................9 ARTICLE 17. -HOURS OF WORK....................................................................................................................10 ARTICLE18......................................................................................................................................................10 ARTICLE 19................................................................................................................................. ...................—..... ... 10 ARTICLE 20. -INSURANCE..............................................................................................................................10 20.3. MEDICAL INSURANCE...............................................................................................................................10 20.86. GROUP INSURANCE PREMIUMS................................................................................................................11 20.97. LIFE INSURANCE......................................................................................................................................11 20.10 SHORT TERM DISABILITY.................................................................................................... 11 20.119. LONG TERM DISABILITY...........................................................................................................................11 20.124-0. DENTAL INSURANCE................................................................................................................................11 20.1344. VISION INSURANCE..................................................................................................................................11 20.1443. RETIRING EMPLOYEES.............................................................................................................................12 Page 8971409.1 OR040-031 20.15 HEALTH RETIREMENT ACCOUNT REOPENER..............................................................................12 ARTICLE 21. -REIMBURSEMENT ACCOUNT.................................................................................................12 21.2. MEDICAL REIMBURSEMENT ACCOUNT......................................................................................................12 21.3. DEPENDENT CARE ASSISTANCE ACCOUNT...............................................................................................12 ARTICLE 22. -EXTRAORDINARY SERVICES COMPENSATION...................................................................12 ARTICLE 23. PROBATIONARY PERIOD........................................................................................................13 ARTICLE 24. PROMOTIONS...........................................................................................................................14 ARTICLE 25. RETIREMENT............................................................................................................................14 25.1.1. EMPLOYEES HIRED PRIOR TO SEPTEMBER 21,1979.................................................................................14 25.1.2. EMPLOYEES HIRED ON OR AFTER SEPTEMBER 21,1979 AND BEFORE OCTOBER 1,2010...........................14 25.1.3. EMPLOYEES HIRED ON OR AFTER OCTOBER 1.2010.................................................................................15 25.1.4. EMPLOYEES HIRED ON OR AFTER JANUARY 1,2013.....................................................................15 ARTICLE 26. -SHIFT DIFFERENTIAL..............................................................................................................15 ARTICLE 27. -LEAVE-OF-ABSENCE WITH PAY.............................................................................................15 27.1. VACATION LEAVE....................................................................................................................................15 27.2. SICK LEAVE............................................................................................................................................16 27.3. JURY DUTY LEAVE..................................................................................................................................18 27.4. WITNESS LEAVE......................................................................................................................................18 27.5. MILITARY LEAVE......................................................................................................................................19 27.6. BEREAVEMENT LEAVE.............................................................................................................................19 27.7. ADMINISTRATIVE LEAVE...........................................................................................................................19 ARTICLE 28. -LEAVE-OF-ABSENCE WITHOUT PAY.....................................................................................20 28.3. SUBSTITUTION OF PAID LEAVE.................................................................................................................20 28.4. PERMISSIBLE USES.................................................................................................................................21 28.5. GENERAL PROVISIONS'EAIIF...............................................................................................................2222 28 6 Rrri IRN r. ni ov PQ''PY FgR IS1C)N WQRK or'-ram.,�"r 23 28.7.Q_QP4PI T#E :. .............................................................24 ARTICLE 29. -CLASSIFICATION STUDIES.....................................................................................................24 29.34. Y-RATING...............................................................................................................................................24 ARTICLE 30. DRIVER'S LICENSE..................................................................................................................25 ARTICLE 31. -LAYOFF PROCEDURE.............................................................................................................25 ARTICLE 32. LIGHT DUTY..............................................................................................................................25 ARTICLE 33. MEDICAL EXAMINATION..........................................................................................................25 ARTICLE 34. MILEAGE ALLOWANCE............................................................................................................26 ARTICLE35. ACTING PAY..............................................................................................................................26 ARTICLE36. .............................................................................................................................26 ARTICLE 37. PERSONNEL FILES..................................................................................................................26 ARTICLE 38. -BULLETIN BOARDS..................................................................................................................26 ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS.........................................................26 ARTICLE 40. -USE OF DISTRICT FACILITIES................................................................................................27 ARTICLE 41. -SCOPE OF BARGAINING.........................................................................................................27 Page ii 8971409.1 OR040-031 ARTICLE 42. -IMPASSE PROCEDURES.........................................................................................................27 42.2. IMPASSE PROCEDURES...........................................................................................................................27 ARTICLE 43. -SEVERABILITY..........................................................................................................................28 ARTICLE 44. -UNIFORMS................................................................................................................................28 ARTICLE 45. -SUBSTANCE ABUSE POLICY..................................................................................................28 45.2. DEPARTMENT OF TRANSPORTATION(DOT) REGULAAETIONS.............................................................28 45.32. DISTRICTS SUBSTANCE ABUSE POLICYEPARTMENT of T-R-NSPQRTAT,Q",RrGU AT'^"'s 28 ARTICLE 46. -NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS................................................28 46.1 NEW EMPLOYEE ORIENTATION..............................................................................................28 46.2 DUES DEDUCTIONS ...........................................................................................................29 ARTICLE 47. -MAINTENANCE OF MEMBERSHIP..........................................................................................30 ARTICLE 48. -PEACEFUL RESOLUTION OF DISPUTES...............................................................................30 ARTICLE49.. .............................................................................................................................30 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY...............................................................30 ARTICLE51. RESIGNATION...........................................................................................................................30 ARTICLE52.. .............................................................................................................................30 SIGNATUREPAGE..............................................................................................................................................31 APPENDIXA ...................................................................................................................................................342 Page iii 8971409.1 OR040-031 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES IN THE PROFESSIONAL GROUP In accordance with the provisions of California Government Code Sections 3500,et seq.,and Resolution No.99-24 of the Joint Boards of Directors,the District's authorized representatives have met and conferred in good faith with representatives of the Professional Group. These meetings have resulted in an agreement and understanding to recommend that the employees represented by the Professional Group accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by the Professional Group as set forth in this Agreement. ARTICLE 1. -RECOGNITION 1.1. This Agreement,effective July 1,20196,is entered into between the Orange County Sanitation District,referred to hereinafter as the"District",and the Professional Group,referred to hereinafter as"Group",as a mutual recommendation to the Board of Directors of the District of those wages,hours of work,and terms and conditions of employment. ARTICLE 2. -DURATION 2.1. This Agreement will be binding on the District and the Group when approved and adopted by the District's Board of Directors. This Agreement will terminate on June 30,20224-9. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolutions(EERR),Resolution No. OCSD 99-24. ARTICLE 3. -SUCCESSOR AGREEMENT 3.1. The Group will submit in writing its initial proposal for a successor agreement prior to the expiration date of this Agreement. ARTICLE 4. -GROUP ACCESS 4.1. A Group representative will have access to the District facilities during normal working hours for the purpose of assisting Group employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. 4.2. The Group will provide the Human Resources Department or designee,with a list of Representatives who are authorized to request access under this article,and will notify the Director of Human Resources,or designee,of any changes in that list. 4.3. Group access will not unreasonably interfere with District operations,or with the work of employees in any manner.The District reserves the right to restrict access in certain areas designated confidential or secure. Page 1 of 332 8971409.1 OR040-031 ARTICLE 5. -GROUP RIGHTS 5.1. The Group may designate up to five(5)employees to act as representatives for employees covered by this Agreement. The Group will furnish the Human Resources Department with the names of employees selected as representatives and will update the list as necessary.An alternate representative may be designated to act in the absence of the regular representative.Employees not listed on the roster of representatives provided to the District by the Group may not act as representatives. 5.2. Representatives will not perform non work-related duties on work time without the prior approval of their immediate supervisor.Neither the District nor the Group will interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Group activity. ARTICLE 6. -DISTRICT RIGHTS 6.1. District inherent rights,powers,functions,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making,except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of its constituent departments,commissions and boards;set standards of service, determine the procedures and standards of selection for employment and promotion; establish and implement performance standards;direct its employees;take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted; determine the content of job classifications;classify and reclassify positions;take all necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over its organization and the technology of performing its work. 6.2. District retains all authority and rights conferred on it by law,or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement.District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude the Group from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7. -NONDISCRIMINATION IN EMPLOYMENT 7.1. There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race,color,religion,national origin, ancestry,sex,gender,gender identity,gender expression,sexual orientation,age, physical or mental disability,medical condition,genetic information,marital status,or military or veteran status,or any other lawfully protected class.To the extent required by law or by the District's rules or regulations,this provision of the Agreement will be applied to all members of the Group without regard to any protected classification. ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT 8.1. The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards.In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of Page 2 of 332 8971409.1 OR040-031 District employees and their families,smoking and the use of tobacco(cigarettes, cigars,e-cigarettes["vaping"]and related tobacco products and technologies)is not acceptable within District facilities,and may occur only in areas posted for smoking. ARTICLE 9. -SAFETY 9.1. It is the duty of the District to provide and maintain a safe place of employment.The Group will cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner.It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to unsafe practices,equipment,and conditions,and to follow the safety regulations and requirements of the District,and to report any unsafe practices or conditions to their immediate supervisor. An employee will not be required to perform work that is unsafe. ARTICLE 10. -DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the Group:verbal reprimand;written reprimand; suspension without pay;reduction in pay;demotion to a classification with a lower pay grade,or dismissal. 10.2. Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay,reduction in pay,demotion to a classification with a lower pay grade,or dismissal.The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was personally delivered or deposited in the mail,which will be the date of issuance. 10.5. The Notice of Intent will contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action; (3)a copy of the charges and materials upon which the action is based;and, (4) a statement of the employee's right to respond,either verbally or in writing to the person initially imposing the discipline,or to a District management representative with authority to make an effective recommendation on the proposed action;the person to whom any response must be directed,and the fact that such response must be received within ten(10)business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10.6. Prior to the effective date of the proposed disciplinary action,the employee will be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response,the District will notify the employee in writing of the action that will be taken. Such action may not involve discipline more severe than that described in the Notice of Intent;however,the District may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies&Procedures Manual. Page 3 of 332 8971409.1 OR040-031 10.7. Dismissal will be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the influence of drugs or alcohol,theft or misappropriation of District property or funds, fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post-disciplinary hearing.The request must be submitted to the Assistant General Manager or designee,within ten(10)business days following the effective date of the disciplinary action(for suspensions,the effective date will be the first business day following the final day of the suspension).The Director of Human Resources,or designee,will schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager.The hearing officer may not be an employee of the District.The hearing officer will provide a written, advisory decision to the General Manager.The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent.The decision of the General Manager will be final.If the hearing officer upholds the disciplinary action,the employee will pay the full cost and expenses of the hearing officer. 10.9. All disciplinary action documentation,except verbal reprimand documentation,will be placed in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be kept in the supervisor's employee files. Supervisors shall inform management staff when a verbal reprimand is to be implemented. If after twenty-four(24)months from implementation there have been no recurrences of similar incidents,the supervisor shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee's personnel file twenty-four (24)months subsequent to the date of the issuance,provided that there has been no recurrence of a similar incident during the period.If the Human Resources Department agrees to remove the written reprimand documentation from an employee's personnel file such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reclassifications,"bumping" associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11. -GRIEVANCE PROCEDURE 11.1. A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2. A grievance may be brought to the attention of the District by an individual employee within the Group or by the Group.The District may not bring a grievance through this Page 4 of 332 8971409.1 OR040-031 procedure.Grievances brought by two(2)or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the Group,be consolidated for the purposes of this procedure. 11.3. Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. 11.4. An employee may be self-represented or be represented by the Group at all steps of the Grievance Procedure unless specifically agreed otherwise by the Group and the employee. The District will provide a copy of all written grievance settlements to the Group. Any reference to days in this article implies business days. 11.4.1. Step 1. An employee who has a complaint will attempt to resolve it with his/her immediate supervisor within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event.The supervisor will attempt to resolve the issues surrounding the complaint,and respond to the employee within ten(10)days. 11.4.2. Step 2. If the grievance is not settled informally at Step 1,it may be submitted in writing to the employee's Department Head,or designee.This request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1. A copy of each written communication on a grievance shall be filed with the Assistant General Manager,or designee. The written grievance must: 11.4.2.1. Identify the specific management act to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of this agreement that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested;and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Department Head will respond in writing to the employee within ten(10) days after the date the grievance is received. 11.4.4. Step 3. If a grievance is not settled under Step 1 or 2,it may be presented to the Assistant General Manager,or designee,for review and written response.The request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above.A copy of each written communication on a grievance shall be filed with the Assistant General Manager,or designee.The Assistant General Manager,or designee,will respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.5. Step 4. If the grievance cannot be resolved under Step 3,it may be presented to the General Manager within ten(10)days from the date the Step 3 finding was issued.The General Manager,or designee,will respond Page 5 of 332 8971409.1 OR040-031 in writing to the employee within fifteen(15)days after the date the grievance is received.The decision of the General Manager is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance.If an employee is represented by the Group, the Group may designate one(1)employee to present and process the grievance. The employee representative will be given reasonable time off without loss of pay to perform this responsibility.Absence from work will be approved only if it does not cause disruption to District operations.However,if the time requested cannot be provided,an alternate time will be arranged. 11.6. Failure of a supervisor,Department Head or other management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits,it will be considered resolved on the basis of the preceding response.The Human Resources Department may be petitioned in writing to waive the step or time requirements provided sufficient cause exists.Time limits may also be extended at any step upon mutual agreement of the parties.The District agrees to meet face-to- face with the employee at each step of the grievance procedure at the request of the employee. 11.7. Resolution may be agreed upon at any stage of the grievance process.However,the Group will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. -PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2. Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor will review the situation or decision, and provide a written response within five(5)days from the date they were notified of the problem. 12.3. If the problem is not resolved to the employee's satisfaction,the employee may file a written statement concerning the problem with the Human Resources Department within ten(10)days of receipt of the supervisor's decision. Upon request of either party,a meeting will be held to define issues and establish the remedies sought. The employee will be provided a written response within ten(10)days after his/her statement is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Human Resources Department is final. ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION 13.1. Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. Page 6 of 332 8971409.1 OR040-031 13.3. Merit Pay 13.3.1. Step Increase Pay—Group employees are eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1. Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2. Ineligible-Employees who are placed on a Performance Improvement Plan(PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.4. Performance Management Program:The performance management program includes two(2)rating categories(proficient and needs improvement)for performance appraisals. 13.5. Development Pay—Employees under this Agreement are eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.5.1. Education—Effective the fors ^ period On '�"ten,a ^Eligible employees who obtain or who have obtained a graduate degree of approved subjects at an accredited college or university will receive $75.00 per pay period. 13.5.2. Certification/License—Effective the first^ period On July 2016, eEligible employees who obtain or who have obtained a District approved certification or license will receive$15.24 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses. 13.5.3. Grade V Pay—Employees who receive Grade V pay in accordance with the applicable District policy are ineligible to receive Development Pay for their Grade V California Wastewater Treatment Plant Operator Certificate. Employees who possess a Grade V Certificate and do not meet the criteria for Grade V Pay are eligible for Development Pay in accordance with the Development Pay Program Guidelines. 13.6. Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.7. Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.8. Salary Range Adjustments 13.8.1. Effective the first pay period in July 20196,employees under this Agreement will receive salary range adjustments at a flat rate of Page 7 of 332 8971409.1 OR040-031 13.8.2. Effective the first pay period in July 20204-7,employees under this Agreement will receive salary range adjustments at a flat rate of 2-53.0%. 13.8.3. Effective the first pay period in July 20214-8,employees under this Agreement will receive salary range adjustments at a flat rate of 2-.53.0%. 13.9. Investment Incentive Salary(IIS) 13.9.1. An additional amount of 4%of base salary will be paid to employees hired or promoted into the Group on or before October 16,2003 in a lump-sum amount each pay period.This provision continues to make employees whole as a result of the Ventura decision.The above percentages will not be counted toward base salary for the purpose of salary surveys. 13.9.2. In addition,employees hired or promoted into the Group on or before October 16,2003 will be paid$1250 annually or$48.08 per pay period in IIS to further encourage savings and investment for retirement. 13.9.3. IIS amounts are applied to annual,retirement,and termination leave payouts for eligible employees. ARTICLE 14. -SEVERANCE PAY 14.1. Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee will be notified in writing two(2)weeks prior to the effective separation date.The employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time,regular employees will be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2. Employees in limited term or part-time positions,probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE 15. -DEFERRED COMPENSATION 15.1. Employees may participate in the District approved deferred compensation plan, subject to IRS requirements,and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. -HOLIDAYS 16.1. The days listed below are observed by the District as holidays.Employees will receive holiday pay if their entire scheduled work shifts immediately preceding and following the holiday are in a paid payroll status,meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday,the Page 8 of 332 8971409.1 OR040-031 employee will be paid at the employee's regular rate of pay for the holiday,and will also receive pay at the rate of one and one half(1.5)times his/her regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay,if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day. Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). Holidays New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday— 16.2. Floating Holiday: Employees may elect one(1)day during each year as a"Floating Holiday."New employees shall be granted a"Floating Holiday"on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent list Quarter(January-March) 100% 2nd Quarter(April-June) 75% 3'd Quarter(July-September) 50% 4th Quarter(October-December) 0% 16.3. Employees must use the"Floating Holiday"within the year it is granted.Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. 16.4. Part-time employees are eligible for holiday benefits on a pro-rata basis as set forth in applicable District Policy. Page 9 of 332 8971409.1 OR040-031 ARTICLE 17. -HOURS OF WORK 17.1. The work schedule for full-time employees will be eighty(80)hours per biweekly pay period,normally scheduled in shifts of five(5)eight 8-hour days each week,four(4) nine-9-hour days each week and one(1)additional 8-hour day on alternate weeks (9/80),four(4)ten 10-hour days each week(8/80),or three(3)twelve 12-hour days each week and one(1)additional 8-hour day on alternate weeks(7/80).However, with the approval of the employee's supervisor,employees may be allowed to flex their schedule within the pay period provided that the business needs,work flow,and customer service needs of the District are met. 17.2. The District may,at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee,which may be waived by the employee per written request. 17.2.1. The 30-day notice will not be applicable if the change is a result of a reasonable accommodation. ARTICLE 18. (This article intentionally left blank) ARTICLE 19. (This article intentionally left blank) ARTICLE 20. -INSURANCE 20.1. The District will provide healthcare and welfare insurance benefits. 20.2. All insurance coverage will become effective on the first day of the month following date of hire,regardless of hire date.An open enrollment period will be held annually. 20.3. Medical Insurance 20.3.1. The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan,a Preferred Provider Organization(PPO)medical insurance plan,and a High Deductible Health Plan(HDHP). 20.4. Regular,full-time employees The District will contribute 90%of employee only premiums for the HMO medical health plans and 80%of employee only premiums for the PPO medical plan. The District will contribute 80%of the employee+1 dependent and full family premiums for the HMO or PPO medical plans. Any change in insurance rates will be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District sponsored health insurance plan,the parties agree to meet and confer as to changes in the plan. 20.5. Regular,part-time employees Part-time employees are eligible for medical insurance benefits on a pro-rata basis as set forth in the applicable District Policy. 20.6. The HDHP will be accompanied by a Health Savings Account(HSA)to pay for qualified medical expenses.OCSD will use a portion of the cost savings in premiums to fund the HSA accounts during active employment only.The HSA will be funded with the savings generated annually by calculating the difference between the Page 10 of 332 8971409.1 OR040-031 District's share of the PPO and HDHP premiums.Exact HSA account funding will be calculated annually,prior to open enrollment,in an amount up to the difference in deductibles,not to exceed the District's aforementioned annual premium cost savings. 20.7. The District may reopen negotiations at any time during the term of this agreement to address the impact of the Affordable Care Act(ACA). 20.8. Group Insurance Premiums 20.8.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.9. Life Insurance 20.9.1. The District will pay the full premium for$50,000 term life insurance on each employee. 20.10. Short Term Disability 20.10.1. The District will provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to the maximum weekly amount provided through California's State Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. 20.11. Long Term Disability 20.11.1. The District will provide a non-work related,long-term disability indemnity plan that pays two-thirds of the employee's rate of pay in effect at the time of such disability,not to exceed$5,000 per month,following a 90- day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.11.2. For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older,the maximum period of payment is specified. The specified periods and additional information about coverage is included in OCSD's long term disability plan contract accessible on the intranet. 20.11.3. No combination of disability or sick leave pay will result in more than an employee's regular rate of pay.Employees may not receive short-term and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at their own expense. 20.12. Dental Insurance 20.12.1. The District will contribute 80%of employee only and full family premiums for dental insurance. 20.13. Vision Insurance 20.13.1. The District will provide a vision insurance plan for regular,full-time employees and eligible dependents.Part-time employees are eligible for vision insurance benefits on a pro-rata basis as set forth in applicable Page 11 of 332 8971409.1 OR040-031 District Policy. 20.14. Retiring Employees 20.14.1. The District will pay,for employees hired prior to July 1, 1988,two and one-half(2.5)months'premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District medical plan. 20.14.2. In the event the District adds additional optional insurance plans,the District's share of the premium will be the same as for existing plans as set forth above. In the event the District changes underwriters for existing insurance plans,the District's share of the premium will be the same as for existing insurance plans as set forth above. 20.14.3. The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every Lull ear of continuous..service...up to a _..— Commented[BS3]:Marc and sPMG team-we did not maximum of 25 years or$250 per month. discuss this at the table,but we have updated this language (house keeping)to align with OCSD's current practice.Are 20.15. Health Retirement Account(HRA)Reopener: The District and the Group agree you OK with this update? to reopen this Agreement to discuss HRA plan design and funding mechanism options, including District and/or employee funding,understanding the District is not making any commitment to District funding. ARTICLE 21. -REIMBURSEMENT ACCOUNT 21.1. Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements.The options available under the flexible benefits program are listed below.This is a brief overview of the different options.For complete information regarding Flexible Spending Accounts employees must refer to the plan booklet available in the Human Resources Department. 21.2. Medical Reimbursement Account 21.2.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself/herself for payment of health care costs not otherwise covered by his/her medical insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself/herself for child care expenses or day care for a disabled dependent ARTICLE 22. —EXTRAORDINARY SERVICES COMPENSATION 22.1. Employees in the Group are exempt from the overtime provisions of the Fair Labor Standards Act. However,when services are required beyond what is normally expected of a position in this Group,employees will be eligible to receive additional compensation,as defined herein,for performing extraordinary services. Page 12 of 332 8971409.1 OR040-031 Extraordinary services shall be defined as: 22.1.1. The General Manager declares an emergency.A declaration of an emergency is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement, including Article 11—Grievance Procedure or Article 12—Problem Solving Procedure. 22.1.2. The General Manager determines that there exists a critical event.A critical event is defined as work of a prolonged nature;involving non- emergency related services;major special projects;or when a substantial effort must be expended to meet a compliance date or scheduled deadline.The designation of a critical event is at the sole discretion of the General Manager whose decision is final and not subject to any other provision of this Agreement,including Article 11 — Grievance Procedure or Article 12—Problem Solving Procedure. 22.1.3. Written approval of a critical event must be obtained in advance of the work to be performed.The authorization shall set forth the work to be accomplished,the anticipated start and end date and those employees expected to participate in the work.The Department Head,or designee, will be responsible for determining the actual start and end date as well as those who actually work the event. 22.2. Upon the declaration of an emergency or upon the designation of a critical event, employees will be compensated as follows: 22.2.1. Compensation will be restricted to those employees that are assigned to the event,independent from which department they are assigned. 22.2.2. For emergencies,compensation will occur for all hours outside the employee's regularly scheduled work shift.For critical events, compensation will occur for all hours after an initial 10 hours of uncompensated time has elapsed. 22.2.3. Employees in the Operations Supervisor classification will receive additional compensation at one and one-half(1.5)times their regular rate of pay.All other classifications shall receive straight time compensation. ARTICLE 23. —PROBATIONARY PERIOD 23.1. All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following six months of employment without a break in service.Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position,and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.2. Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his/her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. 23.3. Employees who are reassigned or laterally transferred will serve a probationary period of six months. The"probationary period"shall not divest an employee of Page 13 of 332 8971409.1 OR040-031 his/her property right in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. -PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position will be filled as an open or promotional recruitment.Whenever the District intends to fill a position by promotion,the District will post the opportunity for a minimum of ten(10) business days. Employees must apply during the period of posting. Notices will be posted on the District's intranet. 24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective date of the promotion. 24.3. At any time during the promotional probationary period,an employee may be returned to his/her previous position.The promotional probation period may be extended by mutual agreement between the employee and District management for up to ninety(90)days. 24.4. If an employee is promoted during his/her initial probationary period,the period will be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.5. Promoted employees will receive the equivalent of a one(1)step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. -RETIREMENT 25.1. The District will continue participation in the Orange County Employees Retirement System(OCERS),wherein all full-time employees and part-time employees scheduled to work twenty(20)hours per week or more are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1. Employees hired prior to September 21, 1979: The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12)months average earnings,past and future service. 25.1 1.1 The Dostriet i..ill r .time to pay A 5%tew ..1S+he 8 P1 nn+rih 4inn to GGERS far+here employees who elen+ed to make e ene tome rlen'c' n to rpmamnn+he Plan G program. 25.1.2. Employees hired on or after September 21, 1979 and before October 1, 2010:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1. The District will continue to pay 3.5%of an eligible employee's base salary towards the employee's contribution to OCERS. Page 14 of 332 8971409.1 OR040-031 25.1.3. Employees hired on or after October 1,2010 and before January 1, 2013: The District will contract with OCERS to provide the 1.667%@ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six (36)months average earnings,past and future service. 25.1.3.1. The District will pay 0%of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1.4. Employees hired on or after January 1,2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA) based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.4.1. The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2. All monies actually contributed into the retirement system by an employee will be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26. —SHIFT DIFFERENTIAL 26.1. Employees who are assigned to work a night shift that consists of 50%or more of the hours between 6:00 p.m.and 6:00 a.m.and who actually work that shift will receive a shift differential of$32.950 per hour. ARTICLE 27. —LEAVE-OF-ABSENCE WITH PAY 27.1. Vacation Leave 27.1.1. Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2. Part-time employees accrue vacation leave on a pro-rata basis as set forth in applicable District Policy. Page 15 of 332 8971409.1 OR040-031 27.1.3. Vacation leave herein offer onemployee has completed twenty sox 261 eels of centini iei,s s Affer his/her first twenty sox(26)weeks of * kl4e 4uedited with forty(40)hours. After that time they.will aGGr1 le cetir.n hnurc isfenf.with fhe ohe..e chart Vacation leave may only be utilized in increments of one-half- ug after hour or more. Vacation leave is accrued for all paid hours,including hours actually worked and hours in a paid-leave payroll status. 27.1.4. When unpaid absences occur,vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period,and is applicable to all types of leave,whether legally protected or not. 27.1.5. Annual Payoff.Employees may have a maximum accumulation of two hundred(200)hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of two hundred(200)hours,it must be used prior to said December date,all other remaining hours in excess of two hundred(200) will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2. Sick Leave 27.2.1. Definition. Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury, or pregnancy:to attend to the illness or injury of a family member as hereinafter defined:or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a).Temporary employees shall receive sick leave benefits as required by State law. 27.2.2. Method. -Sick Leave Accrual. Full-time employees hired prior to November 27, 1981,accrue paid sick leave at the rate of three and one- half(3.5)hours for each biweekly pay period of continuous service; ninety-one(91)hours per year. Full-time employees hired on or after November 27, 1981,accrue paid sick leave at the rate of three(3.0) hours for each biweekly pay period of continuous service;(seventy-eight (78)hours per year),beginning with the first day of employment. 27.2.3. Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable District Policy. 27.2.4. When unpaid absences occur,sick leave accruals will be applied by straight proration of leave accruals based on the number of hours paid within the pay period,and is applicable to all types of leave,whether legally protected or not. 27.2.5. Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending inef October at their current hourly rate according to the following payoff schedule. Accrued Sick Leave Hours Rate of Payoff Page 16 of 332 8971409.1 OR040-031 0-100 0% 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.6. Employees who terminate for any reason other than retirement or death will be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty(20) years or more of service will be paid at the one hundred percent(100%) rate for all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7. Permissible Uses. Sick leave may be applied only to: 27.2.7.1. Absence due to illness,injury or pregnancy of an employee. 27.2.7.2. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. 27.2.7.3. Absence for the care of the employee's father,father-in-law, mother,mother-in-law,brother,sister,husband,wife, domestic partner,child,child of domestic partner, grandparent,grandchild,legal guardian,or family member with whom the employee resides. 27.2.7.4. Absence due to a job-related injury. 27.2.7.5. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). 27.2.8. General Provisions. To qualify for sick leave pay,the employee must notify the District at or in advance of the time the employee is scheduled to report for duty.Minimum charge to the employee's sick leave account will be one-quarter-half-(0.25)hour increments. 27.2.9. The Human Resources Department and department management will be responsible for controlling the abuse of the sick leave privilege.For absences of ten(10)consecutive working days or more,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to the Human Resources Department. Upon return to work,a written doctor's release must be submitted to the Human Resources Department.For absences of one(1)or more working days in an unpaid status,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to the Human Resources Department. 27.2.10. If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Act("FMLA")or the California Family Rights Act("CFRA"),the certification requirement will comply with the provisions of these Acts. Page 17 of 332 8971409.1 OR040-031 27.2.11. Sick Leave Incentive Plan. If the average sick leave usage of employees in the Group is under forty(40)hours per year,calculated on annualized actual time off from October to October,based on the last pay periods ending in October,exclusive of catastrophic illness or injury requiring absence in excess of two hundred(200)hours or industrial injury leave in excess of eighty(80)hours,the annual payoff for unused sick leave will be as follows: Accrued Sick Leave Hours Rate of Payoff 0—100 15% 101 —240 45% 241 —560 60% Over 560(mandatory) 75% 27.3. Jury Duty Leave 27.3.1. Any full-time,including probationary,employee who is called for jury duty will be entitled to his/her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2. Prior to jury duty service,employees must complete an online time off request form.To be entitled to receive regular pay for such jury leave, employees must report for work during their regularly scheduled work shift when they are relieved from jury duty service,unless there is less than one-half('/z)of a regular shift remaining.Employees are not compensated for jury duty occurring on scheduled days off. 27.3.3. An employee serving jury duty must obtain an attendance slip from the court to be submitted to his/her supervisor with his/her timesheet in order to be eligible for regular pay for those hours of absence due to jury duty. 27.4. Witness Leave 27.4.1. Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his/her presence as a witness,except in a matter wherein he/she is named as a defendant or plaintiff or as an expert witness,will, upon approval of an online time off request,be entitled the time necessary to comply with such subpoena. An employee's regular pay will be reduced by the amount of witness leave pay received,exclusive of mileage. 27.4.2. An employee so subpoenaed must submit a copy of the subpoena to his/her supervisor and complete an online time off request form in order to be eligible for pay for such absence.To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one(1)hour or more prior to and/or upon completion of each day's service,exclusive of travel time. Page 18 of 332 8971409.1 OR040-031 27.5. Military Leave 27.5.1. A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the date when it is desired to begin the leave-of-absence and the date of anticipated return.A copy of the orders requiring such military service will be submitted with the request. 27.5.2. Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 will govern military leave.In general,current law provides that an employee having one(1)year or more service with a public entity is entitled to military leave with pay not exceeding thirty(30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment.An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use vacation,administrative leave,or personal leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations.Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6. Bereavement Leave 27.6.1. Any full-time employee,whether probationary or regular,shall receive a maximum of thirty-six(36)hours off with pay for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member. Immediate family member is defined as the employee's father,step-father,father-in- law,mother,step-mother,mother-in-law,brother,step-brother,sister, step-sister,husband,wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner,grandchild,grandparent, foster parent,foster child,legal guardian,or any family member with whom the employee resides.Employees must submit an online time off request form for approval by their supervisor. Employees may be required to furnish evidence satisfactory to the District of the family member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six(6)months to the Director of Human Resources or designee,who has the discretion to grant or deny such requests. Any denial of a request for the use of bereavement leave after the designated six(6) months is not grievable or otherwise subject to appeal. 27.6.2. Part-time employees are eligible for bereavement leave on a pro-rata basis as set forth in applicable District Policy. 27.7. Administrative Leave 27.7.1. Effective the first pay period in July,regular full-time employees in the Group shall be granted forty(40)hours of Administrative Leave. Employees who are hired or promoted into the Group shall be granted Administrative Leave on a pro-rata basis per the following schedule: Page 19 of 332 8971409.1 OR040-031 Hire Date Percent July-September 100% October-December 75% January-March 50% April-June 0% 27.7.2. Administrative Leave will be administered in accordance with the following guidelines: 27.7.2.1. Administrative Leave may be used in one-quarter-(0.25)hour increments. 27.7.2.2. Any unused Administrative Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 27.7.2.3. Any unused Administrative Leave,within the fiscal year granted,is not subject to cash out or eligible for any mandatory payout. 27.7.2.4. Employees who cease to be part of the Group for any reason will forfeit any unused Administrative Leave. ARTICLE 28. —LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of the District to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below,employees will not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 28.2. Using the prescribed forms,approved by District management,any full-time, including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250)hours of service,may be granted an FMLA or CFRA leave-of-absence without pay,not to exceed twelve(12)weeks in a rolling twelve(12)month calendar period.A"rolling"twelve(12)month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five(5)consecutive working days, or for absences of ten(10)working days or more when using paid sick leave accruals. 28.3. Substitution of Paid Leave. 28.3.1. Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition will be required to use all accruals before unpaid leave is granted. Page 20 of 332 8971409.1 OR040-031 28.3.2. Vacation,administrative leave or personal leave accruals may be used for the care of the employee's father,step-father,father-in-law,mother, step-mother,mother-in-law,brother,step-brother,sister,step-sister, husband,wife,domestic partner,biological child,adopted child,step- child,foster child,legal ward,child of a domestic partner,grandchild, grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4. Permissible Uses 28.4.1. FMLA Leave. FMLA leave may be used for: 28.4.1.1. The birth of a child or to care for a newborn of an employee; 28.4.1.2. The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3. The care for the employee's father,step-father,father-in-law, mother,step-mother,mother-in-law,brother,step-brother, sister,step-sister,husband,wife,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent,legal guardian, or any family member with whom the employee resides,who has a serious health condition,as defined in the Act; 28.4.1.4. The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for the employee's family member or"next of kin" service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to 26 weeks of unpaid leave during a single 12-month period. 28.4.2. CFRA Leave. CFRA Leave may be used for: 28.4.2.1. The same purposes as FMLA Leave,including the care of a domestic partner or child of a domestic partner,and will run concurrently with FMLA leave. 28.4.2.2. CFRA Leave may not be used for 1)an employee's incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3) to care for a family member or next of kin with a serious injury or illness incurred in the line of duty.However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. Page 21 of 332 8971409.1 OR040-031 28.5. General Provisions 28.5.1. Requests for FMLA and CFRA Leave 28.5.1.1. Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with the Department of Labor(DOL)regulations. 28.5.3. Medical and Dental Premiums 28.5.3.1. During FMLA and CFRA Leave,the District will pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee will be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment, in full,within forty-five(45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.4. Reinstatement 28.5.4.1. Upon expiration of FMLA or CFRA Leave,the employee will be reinstated to the same or a comparable position unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,lay-of),in which case the District's obligation to continue health and dental or other benefits will cease. 28.5.5. District Employment of Spouses/Domestic Partners 28.5.5.1. FMLA Leave Married employees will be limited to a combined total of twelve(12)weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.5.5.2. CFRA Leave Married employees and employees in domestic partnerships will be limited to a combined total of twelve(12) weeks CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent er newly born or placed child. 28.5.6. General Leave 28.5.6.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to personal matters,or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2. During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of Page 22 of 332 8971409.1 OR040-031 medical and dental premiums. 28.5.6.3. Failure to submit a monthly co-payment,in full,within forty-five (45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.7. Return to Work Policy 28.5.7.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work,placement in an alternative position,if available,will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. Such time off will be without pay;however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.5.7.3. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an alternative position,or the employee is not willing to return to work,the employee will be re-classified as medically disqualified and not permitted to work. Thereafter,the employee will be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.5.8. Bridge of Service 28.5.8.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within the District within one(1)year,the District will bridge the employee's service date.Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 28.5.9. Failure to Return to Work 28.5.9.1. If,upon the expiration of FMLA or CFRA Leave,or any District- approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee will be considered to have automatically resigned from his/her position.In such cases,the employee will receive advance notification of the District's Page 23 of 332 8971409.1 OR040-031 intent to implement an automatic resignation. 28.5.10. Compliance with Law 28.5.10.1.These Leave-of-Absence provisions will be interpreted and applied in a manner that is consistent with the provisions of FMLA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied, the provisions of law will govern. ARTICLE 29. —CLASSIFICATION STUDIES 29.1. The law requires meet and confer over changes to wages,hours,and terms and conditions of employment;the District is committed to complying with the law. 29.2. An employee who believes his/her position is not properly classified may submit a written request to the Department Head asking that a classification study be conducted.The Department Head will acknowledge the request in writing and review the request for accuracy,and forward it to the Human Resources Department for consideration and response.Classification studies will only be conducted twice a year in November and during the budget process;therefore,classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule which normally requests all information by the end of February.District management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.2.1. All classification study findings regarding existing classifications are subject to approval by the General Manager;findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study will be implemented in the first pay period immediately following the completion of the study unless the recommendations require action to be taken by the Board of Directors prior to implementation.In such event, the recommendations will be implemented in the first pay period immediately following authorization by the Board. 29.3. Y-Rating 29.3.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification,the salary of the incumbent of that position will remain unchanged. 29.3.2. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay resulting from changes to the District's staffing requirements,organizational structure or"bumping"associated with layoffs.Y-rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay(unless otherwise authorized by the General Manager). 29.3.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. Page 24 of 332 8971409.1 OR040-031 ARTICLE 30. - DRIVER'S LICENSE 30.1. Employees who are required by the District to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges.Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is unable to perform his/her regular duties and responsibilities notifies the District in a timely fashion,an attempt will be made to place the employee in an equal or lower level position for which he/she is qualified.Placement in the range of the new classification is subject to District's management discretion. 30.3. The District will continue to pay the license renewals and physical examination costs of Class A and B licenses that are specifically required by the District. ARTICLE 31. -LAYOFF PROCEDURE 31.1. If,in the sole discretion of District's management,personnel reductions are necessary,layoff order and recall lists will be developed based upon job classification,priority of function,job performance,individual qualifications and seniority.The Group and employees subject to lay off will be provided with at least two(2)weeks notification in writing whenever possible. 31.2. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified.Such request must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice.The salary of an employee who voluntarily demotes will be unchanged,except that it may not exceed the top step of the range for the lower level classification. 31.3. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two(2)years from the date of layoff.Individuals will be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled.When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five(5)days,or the offer will be made to the next person on the list.An individual who either does not respond or refuses three(3)consecutive offers will have his/her name removed from the list. 31.4. All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. ARTICLE 32. -LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions.An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. -MEDICAL EXAMINATION Page 25 of 332 8971409.1 OR040-031 33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers his/her own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related.Any examination under this provision will be conducted on District time and at District expense.An employee may submit an independent medical opinion regarding his/her condition and addressing his/her ability to competently perform the duties of the position.This information will be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. -MILEAGE ALLOWANCE 34.1. Approved use of a personal vehicle for District business will be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 35.1. Employees who are assigned by District management to perform the duties of an open,budgeted position at a higher level for a period of at least one hundred(100) consecutive hours will be eligible for a one(1)step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the 101st hour,and continues until the assignment ends or the six (6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted.Requests for acting pay require the approval of the Department Head and the Human Resources Department. The one hundred(100)-hour eligibility period may be waived at the discretion of the General Manager.Time served in higher level assignments shall be credited as qualifying experience for promotional purposes. ARTICLE 36. (This article intentionally left blank.) ARTICLE 37. -PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment.Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Human Resources Department. It is the responsibility of each employee to keep the personal information in his/her files current,including home address,telephone number and person to contact in an emergency. ARTICLE 38. -BULLETIN BOARDS 38.1. The Group may use the bulletin boards located at Plant 1 and Plant 2 which are designated for use by employee Groups to post notices to District employees provided that:(a)no controversial matter which is critical or derogatory of the District, its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the Group will remove its notices after a reasonable length of time;and(d)only a reasonable number of notices will be posted. ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS Page 26 of 332 8971409.1 OR040-031 39.1. A maximum of three(3)employees covered by this Agreement and appointed by the Group will be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Group will provide the Human Resources Department with the names of employees requiring meet and confer release time in advance of the meet and confer session.The release time will be granted provided that the needs of the District permit the time away from assigned work. ARTICLE 40. -USE OF DISTRICT FACILITIES 40.1. District facilities may be used by the Group with prior notice to the Human Resources Department for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations.The Group agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. -SCOPE OF BARGAINING 41.1. The District and the Group acknowledge that during the negotiations which resulted in this Agreement,each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation.Therefore,the District and the Group,for the term of this Agreement, except as otherwise provided herein,each voluntarily and unqualifiedly waive the right,and each agrees that the other will not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. -IMPASSE PROCEDURES 42.1. If either the District or Group declares that an impasse exists in the meet and confer process,the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of its position on all issues.An impasse meeting will be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.1.1. Review the position of the parties in a final effort to reach agreement on a memorandum of understanding,and if the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 42.2. Impasse Procedures are: 42.2.1. Mediation:If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation,nor take any public position at any time concerning the issues. 42.2.2. Fact-Finding: Whether the parties submit the dispute to mediation or not, the Group may request that the parties'differences be submitted to a factfinding panel as soon as practicable.The cost of a fact finder and other mutually incurred costs will be mutually shared by the District and Group. 42.2.3. Board Actions:If the parties fail to resolve the impasse,the dispute will be sent to the District Board of Directors for resolution.Each party will Page 27 of 332 8971409.1 OR040-031 submit its written proposal on all issues to the Board.The Board may take such action to resolve the impasse as it deems appropriate to the public interest.Any action taken by the Board to resolve the impasse will be final and binding. ARTICLE 43. -SEVERABILITY 43.1. Notwithstanding any other provisions in this Agreement,in the event that any article, section or subsection of this Agreement will be declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and the Group will meet and confer on the affected article,section or subsection.In such event,all other articles, sections or subsections of this Agreement not affected will continue in full force and effect. ARTICLE 44. -UNIFORMS 44.1. The District will provide and maintain ten(10)uniform pants and shirts,which may include the name of the employee and District seal,at no cost to employees whose duties require that they wear uniforms.The District will also provide lab coats as required by the lab manager. 44.2. All employees who are issued uniforms must wear them during the performance of their regular duties.Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings.Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. -SUBSTANCE ABUSE POLICY 45.1. The District's Substance Abuse Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy.The District may adopt or implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the Group prior to implementation. 45.2. Department of Transportation(DOT)Regulations 45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver's license requirements of the Department of Transportation,Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3. District's Substance Abuse Policy: 45.3.1. Any employee may be subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. —NEW EMPLOYEE ORIENTATION AND DUES DEDUCTIONS Page 28 of 332 8971409.1 OR040-031 46.1. At menthiv orientation meetonqs for new emplovees,a Group Informational na Gket will be provided to those employees holding group represented n citionc The mational r)a Gkpt%vill innli irlo(_roi in ontaot information,a Group Dp dun inn n-Aha a transmittal in,di^atina:New Employee Orientation 46.1.1. The Group will be allowed up to one 04half-hour each orientation session to communicate with Group-represented classifications to explain the rights and benefits as set forth in this Agreement.Human Resources staff will send to the Group representative,or designee,a notice of each new employee orientation session.The notice will be provided with-at least 10 days prior to the session,or as soon as practicable,and will include pertinent session details." 4# representatives will not onooi iraoo or disooi iraoo Group membership partiGipatiof} 46.1.2. The District will hold new employee orientation sessions on a regular basis or at least on a quarterly basis,given there are new Group- represented classifications.If there are no new hires in the Group- represented classifications for a scheduled session,the District will notify the Group as soon as possible in advance of the session.T„e employee belengs to a dassifisation r nteal by the Groun,, 46.1.3. Human Resources staff will provide the Group with an electronic copy of the name,home address,personal email address,and personal cell phone number of all new Group-represented employees within 30 days of hire.Tho!_roan is the ovotrsivo r zed employee organization for all employees in the(_ro„o;and 46.1.4. Human Resources staff will provide the Group with an electronic copy of the name,home address,personal email address,and personal cell phone number of all Group-represented employees at least every 120 days. n..thnr*7a+ion rnrm anid si-hrnot it+n the He-man Rp-;GUr^e^Departme if hp/she•. i like to join the a 46.2. Dues Deductions 46.2.1. Remittance of the a. . gate amount of all dues and other proper deductions made from the salaries of employees covered hereunder shall be made to AFSCME along with an electronic report detailing the employee's name,employee number,bargaining unit,classification title and pay rate(wh'Gh may be t' something else like level step` work location,work phone,work e-mail,hire date, home address,home phone,home e-mail,cell phone,h'Fthdate ^en,der a+hni^it., and deduction amount(s)and type(s). 46.1 5-.46.2.2. The Group shall indemnify,defend and hold the District harmless against any liability from any claims,demands,or other action related to the District's deduction of Union Dues,including claims related to the Union's use of monies collected under these provisions.Thp nistrint will,dp d„^t from oaoh regula. .sheGk aR d mi+to(_raU^the.dues' al initiation foes an a ..+s fora sh employee who yol nta My authorizes s oh deduction'n writing.S uoh authorizations must be filed by the end of the pay peried pFier to the peried fGF WhiGh the deduction ^ted A46,7.The 'StF'^+Will n vide the GFe un a ahorly list of the n mn,ef+hoes employees Page 29 of 332 8971409.1 OR040-031 for,.,ho..'t has morle r1priurtmons. In addition the District will provide fho namps of new employees or.rl then of employe who have terminated within the repeFting peFied. ARTICLE 47. —MAINTENANCE OF MEMBERSHIP 47.1. All employees who are members of the Group,or who become members of the Group,shall remain members of the Group,except that any employee may withdraw his/her membership by written notice to the Group and the District during the ten day period between ninety(90)and one hundred(100)days preceding the expiration of this agreement. ARTICLE 48. —PEACEFUL RESOLUTION OF DISPUTES 48.1. During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it will not lockout employees in this Group,and Group agrees that it will neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in part from the full,faithful and proper performance of their duties of employment. ARTICLE 49. (This article intentionally left blank) ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1. The District's Workplace Violence and Weapons Policy will apply to all Group members.The District and the Group agree to meet and confer for any proposed revisions to the policy. ARTICLE 51. -RESIGNATION 51.1. Voluntary written resignation of employment with the District is automatically deemed irrevocable after seventy-two(72)hours from the District's receipt of the resignation except by approval of the Human Resources Department. The District may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. ARTICLE 52. (This article intentionally left blank) Page 30 of 332 8971409.1 OR040-031 SIGNATURE PAGE 20196—20224-9 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE EMPLOYEES OF THE PROFESSIONAL GROUP Executed: PROFESSIONAL GROUP ORANGE COUNTY SANITATION DISTRICT Steve Koffroth,Business Representative, Laura Drottz Kalty,Leac!G ief Negotiator AFSCME Council 36(Affiliate of SPMG) I, 6 SGhrnodt Business Reores ..,e A.FSQM.Fm(`o„noil 36(Affiliate of SPMG) Luis Schmidt, Business Representative, AFSCME Council 36(Affiliate of SPMG) Marc Brown,Principal Staff Analyst Celia Chandler,Director of Human Resources nlata,;ha n„hreysl.i orinGipal rants..+ Laura Maravilla,Human Resources&Risk YYYArlministratorNlcholas Oswald, ManageLAndrew Nau,Principal Human Maintenance Specialist r Analyst Larry Roberson,Senior Andrew Nau,Human Resources Supervisor AssedataatContracts Administrator arsine-AguilaTThys DeVries,Prfasipal SenierPrincipal Human Resources Analyst Page 31 of 332 8971409.1 OR040-031 Stephanie Barron,Senior Human Resources Analyst Page 32 of 332- 8971409.1 OR040-031 APPENDIX A Medical Insurance Plan Design Components1,2 CURRENT STATE PPO High Deductible Health Plan Plan Design Component In-Network I Non-Network In-Network Non-Network Deductible $150/$450 $1-A 1 350 $2 6002 700 Annual Out-of- $2,000 $3,000 $2,500 $5,000 Pocket Max/Member Annual Out-of- $4,000 $6,000 $5,000 $10,000 Pocket Max/Family Major Medical Physician Office Visit $15/Visit 30% 10% 30% Specialist Office Visit $15/Visit 30% 10% 30% Preventive Care No Charge 30% No Charge Net Gevered30% 30%(up to Inpatient Hospitalization 10% 30%+$500 10% $1,000/day,non- emergency)+ 500 Outpatient 10% 30% 10% 30%(up to Hospitalization/Surgery $350/admit) $100/Visit+10% Emergency Room $100/Visit+10% (copav waived if admitted) g y (copay waived if admitted) $100/Visit /.....:yed of...I....:atee4 Infertility Benefits Not Covered Not Covered Urgent Care $15/Visit 30% 10% 30% Chiropractic $15/Visit 30% 10%/Visit 30%/Visit (30 visits/year) (30 visits/year) (30 visits/year) (30 visits/year) Opt-Out from Plan Yes Yes Yes Generic/Brand/ Generic/Brand/ Prescription Drugs Non-Preferred Brand Non-Preferred Brand Generic/Brand $5/$20/$35 $10/$25/$40 after Retail (30-day supply) Not Covered deductible Not Covered (30-day supply) $5/$40/$70 $20/$50/$80 after Mail Order deductible (90-day supply) Not Covered (90-day supply) Not Covered Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions.The information contained in Summary Plan Descriptions(SPDs)and Evidence of Coverage EOC booklets prevails. Page 33 of 332 8971409.1 OR040-031 Medical Insurance Plan Design Components1,2 CURRENT STATE Plan Design Component Anthem HMO 0 Kaiser HMO Kaiser Bronze Deductible None None $5,000Individual $10,000 Family Annual Out-of- $1,500 $1,500 $6,250 Pocket Max/Member Annual Out-of- $3,000 $3,000 $12,500 Pocket Max/Family Major Medical Physician Office Visit $15/Visit $15/Visit $60/Visit Specialist Office Visit $15/Visit $15/Visit $70/Visit Preventive Care No Charge No Charge No Charge Inpatient Hospitalization $100Admit $100Admit 30% Outpatient $15 Co-pay o Hospitalization/Surgery $50 Admit (per procedure) 30/Emergency Room $100/Visit $100/Visit $300/Visit (waived if admitted) (waived if admitted) (waived if admitted) Infertility Benefits Status Quo Status Quo Not Covered Urgent Care $15/Visit $15/Visit $60/Visit Chiropractic $449-W Visit * $10/Visit Not Covered (W&60 visits/year)_ (30 visits/year) Opt-Out from Plan Yes Yes Yes Prescription Drugs Generic/Brand/Non- Generic/Brand Generic/Brand Preferred Brand $5/$20/$35 $5/$20 $15/$50 medical Retail (30-day supply) (30-day supply) deductible applies (30-day supply) $5/$40/$70 $5/$20 $30/$100 medical Mail Order deductible applies (90 day supply) (100 day supply) (100-day supply) Plan Design Components will include any applicable mandated legislative changes. 2 This is not a complete description of all benefit provisions.The information contained in Summary Plan Descriptions(SPDs) and Evidence of Coverage(EOC)booklets prevails. For chiropractic services through the American Specialty Health(ASH)Network,the copav is$10 with a maximum of 30 visits in a calendar year for covered services. Page 34 of 332 8971409.1 OR040-031 STEERING COMMITTEE Meeting Date To Bd. of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: Laura Kalty, Chief Negotiator SUBJECT: SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE ORANGE COUNTY EMPLOYEES ASSOCIATION CHIEF NEGOTIATOR'S RECOMMENDATION A. Adopt Resolution No. OCSD 19-09, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) Orange County Employees Association bargaining units. BACKGROUND The MOUs between the Orange County Sanitation District (Sanitation District) and the three Orange County Employees Association (OCEA) bargaining units that became effective on July 1 , 2016 expired on June 30, 2019. OCEA submitted its initial proposal for successor MOU(s) on February 25, 2019. OCEA and the Sanitation District have met and conferred in good faith eleven (11) times since receiving the initial proposal. As of the Board meeting on June 26, 2019, all items except for salary & wages had either reached tentative agreement or had been withdrawn. On June 26, 2019, the Board of Directors authorized the Chief Negotiator to make a counter proposal to OCEA including a three-year contract with a 3.0% salary increase and corresponding range adjustments due in the first pay period in July for each year of the contract, with the first increase to commence on July 5, 2019. The Sanitation District delivered this counter proposal to OCEA on July 9, 2019. OCEA's membership ratified the proposal by majority vote on July 17, 2019. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Offer competitive compensation and benefits • Cultivate a highly qualified, well trained, and diverse workforce • Negotiate fair and equitable labor agreements • Maintain positive employer-employee relations Page 1 of 4 • Provide professional growth and development PROBLEM The MOUs between the Sanitation District and the OCEA bargaining units that became effective on July 1 , 2016 expired on June 30, 2019. PROPOSED SOLUTION Adopt Resolution No. OCSD 19-09, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022". Based on Board direction, the Sanitation District issued a counter proposal to OCEA on July 9, 2019, including three-year contracts with a 3% salary increase for each year of the contract. OCEA distributed the proposal to their membership for voting and OCEA's membership ratified the proposal by majority vote July 17, 2019. RAMIFICATIONS OF NOT TAKING ACTION • Labor instability • Possible impacts to morale • Impasse PRIOR COMMITTEE/BOARD ACTIONS In December 2018, an Ad Hoc Subcommittee of the Steering Committee selected Laura Kalty from Liebert Cassidy Whitmore to serve as the Sanitation District's Chief Negotiator. In preparation for and during the meet and confer process, the Chief Negotiator received direction for labor negotiations with OCEA from the Steering Committee and the Board of Directors. The OCEA meet and confer process was agendized for discussion in Closed Session at the following Committee/Board meetings: • February 27, 2019 - Steering Committee and Board Meeting • March 18, 2019 - Special Steering Committee Meeting • March 27, 2019 - Steering Committee and Board Meeting • April 24, 2019 - Steering Committee and Board Meeting • May 22, 2019 - Steering Committee and Board Meeting • June 26, 2019 - Steering Committee and Board Meeting • July 24, 2019 - Steering Committee and Board Meeting Page 2 of 4 ADDITIONAL INFORMATION The OCEA is the recognized employee organization certified to provide exclusive representation over wages, hours of work, and other terms and conditions of employment for 103 non-exempt Sanitation District employees spread across three (3) bargaining units: the Administrative and Clerical Unit, the Technical Services Unit, and the Engineering Unit. These employees perform administrative, clerical, and/or para-professional tasks in support of their assigned function or program. The MOUs between the Sanitation District and OCEA expired on June 30, 2019. Based on Board direction, the Sanitation District issued a counter proposal to OCEA on July 9, 2019, including three-year contracts with a 3% salary increase for each year of the contract. OCEA distributed the proposal to their membership for voting and OCEA's membership ratified the proposal by majority vote on July 17, 2019. Full redlined versions of each OCEA MOU are attached for review. A summary of the key changes to the MOUs are as follows: 1. Article 1, Recognition: Term of the agreement begins July 1, 2019. 2. Article 2, Duration: Agreement terminates on June 30, 2022; language cleanup to align with Employer-Employee Relations Resolution (EERR). 3. Article 13, Salary Adjustments and Compensation: Salary: Year 1 — 3% Salary Increase, retroactive to the first pay period of July 2019; Year 2 — 3% Salary Increase, effective the first pay period of July 2020; Year 3 — 3% Salary Increase, effective the first pay period of July 2021. Development Pay: Certification/License- $15.24 per pay period per certificate/license with a maximum of three (3). 4. Article 16, Holidays: language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31Sf of prior year; floating holiday to be used within calendar year granted. 5. Article 19, Standby Pay: Standby Pay increased to five hundred (500) dollars per week. 6. Article 20, Insurance: Reopener to discuss establishment of Health Retirement Account (HRA) for all employees; no commitment to District funding. 7. Article 27, Leave-of-Absence With Pay: Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. With reasonable cause, employee may be required to furnish evidence of family member's death and/or of familial relationship. 8. Article 51, Resignation: The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. Listed below are articles with proposed housekeeping changes in the tentative agreement by article number: Article 25 — Retirement Page 3 of 4 Article 27 — Leave-of-Absence With Pay Article 28 — Leave-of-Absence Without Pay FINANCIAL CONSIDERATIONS The total cost is $1,890,944 over the term of the agreement. Sufficient funds are incorporated in the Sanitation District's Five-Year Cashflow to support the adjustments required by this Memorandum of Understanding (MOU). ATTACHMENT The following attachment(s) are included in hard copy may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 19-09 • OCEA Administrative and Clerical Unit (redlined version) • OCEA Technical Services MOU (redlined version) • OCEA Engineering MOU (redlined version) Page 4 of 4 RESOLUTION NO. OCSD 19-09 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDA OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION, FOR FISCAL YEARS 2019/2020, 2020/2021 & 2021/2022 WHEREAS, on October 26, 2016, the Board of Directors ("Directors") of the Orange County Sanitation District (the "District") authorized the General Manager to sign the Memoranda of Understanding with the Orange County Employees Association (referred hereinafter as "OCEA"), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2016 through June 30, 2019 ("2016 MOUs"). WHEREAS, prior to the expiration of the 2016 MOUs on June 30, 2019, OCEA requested to meet and confer regarding successor MOUs. WHEREAS, pursuant to Government Code Section 3500, et seq., representatives of OCEA have met and conferred with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, through negotiations the parties agreed that any salary changes would take effect retroactively to July 5, 2019, the first pay period in the current fiscal year; and WHEREAS, the parties have modified the 2019 MOUs between the District and OCEA to reflect the parties' understanding regarding certain terms and conditions, which include: • Duration of the MOUs has been modified and will be for a 3-year term commencing July 1, 2019, and terminating June 30, 2022, as reflected in the Cover Page and Articles 1 and 2 of the MOUs; language cleanup to align with Employer-Employee Relations Resolution (EERR). • Salary Adjustments and Compensation has been modified as set forth below and as reflected in Article 13 of the MOUs: o Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019. o Year 2 — 3.0% Salary Increase, effective the first pay period of July 2020. o Year 3 — 3.0% Salary Increase, effective the first pay period of July 2021. o Development Pay: ■ Certification/License - $15.24 per pay period per certificate/license with a maximum of three (3). • Holidays has been modified as set forth below and as reflected in Article 16 of the MOUs: o Language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31 st of prior year; floating holiday to be used within calendar year granted. OCSD 19-09-1 • Standby Pay has been modified as set forth below and as reflected in Article 19 of the MOUs: o Standby Pay increased to five hundred (500) dollars per week. • Insurance has been modified as set forth below and as reflected in Article 20 of the MOUs: o Reopener to discuss establishment of Health Retirement Account (HRA) for all employees; no commitment to District funding. • Retirement has been modified as set forth below and as reflected in Article 25 of the MOUs: o Housekeeping changes to remove outdated language. • Leave-of-Absence With Pay has been modified as set forth below and as reflected in Article 27 of the MOUs: o Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. With reasonable cause, employee may be required to furnish evidence of family member's death and/or of familial relationship. o Housekeeping changes. • Leave-of-Absence Without Pay has been modified as set forth below and as reflected in Article 28 of the MOUs: o Housekeeping changes. • Resignation has been modified as set forth below and as reflected in Article 51 of the MOUs: o The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between the District and OCEA for the contract period of July 1, 2019 through June 30, 2022 as outlined herein are hereby approved. Section 2. The General Manager is authorized to sign the Memoranda of Understanding with OCEA for the period of July 1, 2019 through June 30, 2022, in a form approved by General Counsel. OCSD 19-09-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held August 28, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-09-3 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-09 was passed and adopted at a regular meeting of said Board on the 28th day of August 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 28th day of August 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-09-4 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT July 1, 201 through June 30, 20 8972166.1 OR040-030 TABLE OF CONTENTS ARTICLE 1.-RECOGNITION.................................................................................................................................1 ARTICLE 2.-DURATION.......................................................................................................................................1 ARTICLE 3.-SUCCESSOR AGREEMENT...........................................................................................................1 ARTICLE4.-OCEA ACCESS................................................................................................................................1 ARTICLE 5.-OCEA RIGHTS.................................................................................................................................2 ARTICLE 6.--DISTRICT RIGHTS........................................................................................................................2 ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT.....................................................................................2 ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT..........................................................................................2 ARTICLE9.-SAFETY............................................................................................................................................3 ARTICLE 10.-DISCIPLINE AND DISMISSAL......................................................................................................3 ARTICLE 11.-GRIEVANCE PROCEDURE...........................................................................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE.............................................................................................5 ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION......................................................................6 ARTICLE 14.-SEVERANCE PAY.........................................................................................................................7 ARTICLE 15.-DEFERRED COMPENSATION......................................................................................................7 ARTICLE16.-HOLIDAYS......................................................................................................................................7 ARTICLE 17.-=HOURS OF WORK......................................................................................................................8 ARTICLE 18.-CALL-BACK PAY..........................................................................................................................8 ARTICLE 19.-STANDBY PAY..............................................................................................................................9 ARTICLE20.--INSURANCE................................................................................................................................9 20.34 MEDICAL INSURANCE...............................................................................................................................9 20.45 LIFE INSURANCE......................................................................................................................................5 20.56 SHORT TERM DISABILITY..........................................................................................................................9 20.67- LONG TERM DISABILITY..........................................................................................................................10 20.79 DENTAL INSURANCE...............................................................................................................................10 20.89 VISION INSURANCE................................................................................................................................10 20.9 RETIRING EMPLOYEES...........................................................................................................................10 20.10 HEALTH RETIREMENT ACCOUNT REOPENER............................................................................................10 ARTICLE 21.-REIMBURSEMENT ACCOUNT...................................................................................................10 21.2 GROUP INSURANCE PREMIUMS...............................................................................................................10 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT............................................................................................11 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT..............................................................................................11 ARTICLE 22.-OVERTIME...................................................................................................................................1 1 ARTICLE 23.-PROBATIONARY PERIOD..........................................................................................................11 ARTICLE 24.-PROMOTIONS..............................................................................................................................11 ARTICLE 25.-RETIREMENT...............................................................................................................................12 ARTICLE 26.-SHIFT DIFFERENTIAL.................................................................................................................12 ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY..............................................................................................12 27.1 VACATION LEAVE...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................13 27.3 JURY DUTY LEAVE.................................................................................................................................15 27.4 WITNESS LEAVE....................................................................................................................................15 27.5 MILITARY LEAVE....................................................................................................................................15 27.6 BEREAVEMENT LEAVE............................................................................................................................15 27.7 SUPPLEMENTAL LEAVE...........................................................................................................................16 ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY.......................................................................................16 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................17 28.4 PERMISSIBLE USES................................................................................................................................17 28.5 GENERAL LEAVE....................................................................................................................................18 28.6 RETURN TO WORK POLICY.....................................................................................................................18 28.7 COMPLIANCE WITH LAW.........................................................................................................................19 ARTICLE 29.-CLASSIFICATION STUDIES.......................................................................................................19 ARTICLE 30.-DRIVER'S LICENSE.....................................................................................................................20 ARTICLE 31.-LAYOFF PROCEDURE................................................................................................................20 ARTICLE 32.-LIGHT DUTY.................................................................................................................................21 ARTICLE 33.-MEDICAL EXAMINATION...........................................................................................................21 ARTICLE 34.-MILEAGE ALLOWANCE.............................................................................................................21 OCEA-Administrative/Clerical MOU July 1,20194 to June 30,20224-6 Pagei 8972166.1 OR040-030 ARTICLE 35.-ACTING PAY................................................................................................................................21 ARTICLE36...........................................................................................................................................................21 ARTICLE 37.-PERSONNEL FILES....................................................................................................................21 ARTICLE 38.—BULLETIN BOARDS..................................................................................................................22 ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................22 ARTICLE 40.-USE OF DISTRICT FACILITIES..................................................................................................22 ARTICLE 41.-SCOPE OF BARGAINING...........................................................................................................22 ARTICLE 42.-IMPASSE PROCEDURES...........................................................................................................22 ARTICLE 43.-SEVERABILITY............................................................................................................................23 ARTICLE44.-UNIFORMS...................................................................................................................................23 ARTICLE 45.-SUBSTANCE ABUSE POLICY....................................................................................................23 ARTICLE 46.-DUES DEDUCTIONS...................................................................................................................23 ARTICLE47...........................................................................................................................................................23 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES.............................................................................2324 ARTICLE49...........................................................................................................................................................24 ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY................................................................24 ARTICLE51.-RESIGNATION.............................................................................................................................24 ARTICLE52...........................................................................................................................................................24 ARTICLE 53.-LABOR MANAGEMENT COMMITTEE.........................................................................24 SIGNATUREPAGE...............................................................................................................................................25 EXHIBITA.............................................................................................................................................................26 OCEA—Administrative/Clerical MOU July 1,20196to June 30,202249 Page ii 8972166.1 OR040-030 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT In accordance with the provisions of California Government Code Sections 3500,et seq.,and Resolution No.75-127 of the Joint Board of Directors,the District's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association(OCEA)for the Administrative and Clerical Unit.These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. -RECOGNITION 1.1 This Agreement,effective July 1,20196,is entered into between the Orange County Sanitation District, referred to hereinafter as the"District,"and the Orange County Employees Association,referred to hereinafter as"OCEA." 1.2 The District recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications,as set forth in Exhibit"A"(attached hereto and incorporated by reference),as well as additional classes as may be added hereafter by the District. ARTICLE 2.-DURATION 2.1 This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30,202249. Any issue regarding the question of exclusive representation of a recognized employee organization shall be brought pursuant to the Employer-Employee Relations Resolution(EERR),Resolution No.OCSD 99-24This AQF88 ,o..f 6h�" .to the r of the Q 86to R of r Rtatm R.dU FiRQ ifo for... ..{that the.. es ie ..f term,except that the question of representation may be raised during the period between sixty(60)and ARTICLE 3. -SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4. -OCEA ACCESS 4.1 An OCEA Representative shall have access to the District's facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources,or designee. 4.2 The OCEA shall provide the Director of Human Resources,or designee,with a list of Representatives who are authorized to request access under this article,and shall notify the Director of any changes in that list. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,202249 Page 1 8972166.1 OR040-030 4.3 OCEA access shall not interfere with the District's operations,or with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated as confidential or secure. ARTICLE 5.-OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources,or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to the District by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither the District nor the OCEA shall interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6.—DISTRICT RIGHTS 6.1 District inherent rights,powers,functions,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of its constituent departments, commissions and boards;set standards of service,determine the procedures and standards of selection for employment and promotion;establish and implement performance standards;direct its employees; take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted;determine the content ofjob classifications;classify and reclassify positions;take all necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 District retains all authority and rights conferred on it by law,or other legal sources,except to the extent that such authority is explicitly waived by the express terms of this agreement.District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude OCEA from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race,color,religion,national origin,ancestry,sex,gender,gender identity,gender expression,sexual orientation,age,physical or mental disability,medical condition,genetic information, marital status,or military or veteran status,or any other lawfully protected class. To the extent required by law or by the District's rules or regulations,this provision of the Agreement shall be applied to all members of the unit without regard to any protected classification. ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT 8.1 The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families,smoking and the use of tobacco(cigarettes,cigars,e-cigarettes["vaping"]and related tobacco products and technologies)is not acceptable within District facilities,and may occur only in areas posted for smoking. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 2 8972166.1 OR040-030 ARTICLE 9. -SAFETY 9.1 It is the duty of the District to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner.It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to unsafe practices,equipment,and conditions,and to follow the safety regulations and requirements of the District,and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10.-DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit:verbal reprimand,written reprimand,suspension without pay;reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay,a reduction in pay,a demotion to a classification with a lower pay grade,or dismissal.The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail,which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action;(3)a copy of the charges and materials upon which the action is based;and,(4)a statement of the employee's right to respond,either verbally or in writing to the person initially imposing the discipline or to a District management representative with authority to make an effective recommendation on the proposed action,the person to whom any response must be directed,and the fact that such response must be received within ten(10)business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action,the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response,the District shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described in the Notice of Intent;however,the District may reduce discipline without further notice.Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies&Procedures Manual. 10.7 Dismissal shall be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the influence of drugs or alcohol,theft or misappropriation of District property or funds,fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources,or designee, within ten(10)business days following the effective date of the disciplinary action(for suspensions,the effective date shall be the first business day following the final day of the suspension).The Director of Human Resources,or designee,shall schedule a post disciplinary hearing with the General Manager or a OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 3 8972166.1 OR040-030 hearing officer selected by the General Manager. The hearing officer may not be an employee of the District. The hearing officer will provide a written,advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final. 10.9 Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four(24)months subsequent to the date of issuance,provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources,or designee,agrees to remove disciplinary action documentation from an employee's personnel file,such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reclassifications,"bumping"associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11.-GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bring a grievance through this procedure.Grievances brought by two(2) or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the OCEA,be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. 11.4 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure,unless specifically agreed otherwise by the OCEA and the employee. The District shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.4.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event. The supervisor,or designee,shall attempt to resolve the issues surrounding the complaint,and respond in writing to the employee within ten(10)days. 11.4.2 Step 2. If the grievance is not settled at Step 1,it may be submitted in writing to the employee's Division Manager,or designee.This request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1.A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The written grievance must: a) Identify the specific management act to be reviewed; b) Specify how the employee was adversely affected; OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 4 8972166.1 OR040-030 c) List the specific provisions of the MOU that were allegedly violated and state how they were violated; d) Specify the remedy requested;and e) Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.2.1 The Division Manager,or designee,shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.4.3 Step 3. If a grievance is not settled under Step 1 or 2,it may be presented to the employee's Department Director,or designee,for review and written response.The request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1 or 2,and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The employee's Department Director,or designee,shall respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.4 Step 4. If the grievance cannot be resolved under Step 3,it may be presented to an Assistant General Manager,or designee,within five(5)days from the date the Step 3 finding was issued. The Assistant General Manager,or designee,shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.4.5 Step 5.Appeal to the General Manager,or designee,is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4,it may be presented to the General Manager,or designee,within five(5)days from the date the Step 4 finding was issued.The General Manager, or designee,shall respond in writing to the employee within ten(10)days after the date of the grievance is received. 11.5 General Provisions:An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA,the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility. Absence from work shall be approved only if it does not cause disruption to District operations.However,if the time requested cannot be provided,an alternate time shall be arranged. 11.5.1 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step.If a grievance is not presented or appealed within the time limits,it shall be considered resolved on the basis of the preceding response.The Director of Human Resources,or designee,may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.5.2 Resolution may be agreed upon at any stage of the grievance process. However,the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12. -PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure.Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision,and provide a written response within five days from the date they were notified of the problem. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 5 8972166.1 OR040-030 12.3 If the problem is not resolved to the employee's satisfaction,the employee may file a written statement concerning the problem with the Director of Human Resources,or designee,within ten(10)days of receipt of the supervisor's decision. Upon request of either party,a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten(10)days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Director of Human Resources,or designee,is final. ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay—Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2 Ineligible-Employees who are placed on a Performance Improvement Plan(PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program:The performance management program includes three(3)rating categories(exceeds,proficient,needs improvement)for performance appraisals. 13.3.2 Development Pay—Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: • Education—Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive$20.76 per pay period for an associate degree and$41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$41.53 per pay period. • Certification/License—Eligible employees who obtain or who have obtained a District approved certification or license will receive$15.247-.62 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses.The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $45.7222-.%per pay period. 13.3.2.1 The overall maximum Development Pay for education,certification and/or licenses is fixed at$87256439 per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 6 8972166.1 OR040-030 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 20196,employees under this Agreement will receive salary range adjustments at a flat rate of 3_02-.5%. 13.4.2 Effective the first pay period in July 202047,employees under this Agreement will receive salary range adjustments at a flat rate of 3_0;5%. 13.4.3 Effective the first pay period in July 202148,employees under this Agreement will receive salary range adjustments at a flat rate of 3_0;K�°/u. ARTICLE 14. -SEVERANCE PAY 14.1 Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee shall be notified in writing two(2)weeks prior to the effective separation date.In the event the District does not give such notification,the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time,regular employees shall be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2 Employees in limited term or part-time positions,probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. ARTICLE 15.-DEFERRED COMPENSATION 15.1 Employees may participate in the District's approved deferred compensation plan subject to IRS requirements,and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16.-HOLIDAYS 16.1 The days listed below are observed by the District as holidays.Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday,the employee will be paid at the employee's regular rate of pay for the holiday,and will also receive overtime pay at the rate of one and one half(1.5)times their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay.if requested by December 31 of the prior year on the Holiday Comp Cashout Form. When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). HOLIDAY New Year's Day Lincoln's Birthday President's Day OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 7 8972166.1 OR040-030 Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday- 16.2 Employees may elect one(1)day during each year as a"Floating Holiday".New employees shall be granted a"Floating Holiday"on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter(January-March) 100% 2M Quarter(April-June) 75% 3rd Quarter(July-September) 50% 4tn Quarter(October-December) 0% 16.3 Employees must use the"Floating Holiday"within the calendar year it is granted.Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17.-HOURS OF WORK 17.1 For record keeping and accounting purposes,the"workweek"for full-time employees is 40 hours per 168- hour period,to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek(9/80 schedule),five 8-hour days each workweek(10/80),four 10-hour days each workweek(8/80),or three 12-hour days and one 4- hour day each workweek(7/80). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift,and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed,he or she shall receive two hours pay at the overtime rate. 17.3 The District may,at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee. ARTICLE 18.-CALL-BACK PAY 18.1 When an employee is called back to work by District management without prior notice,and the employee has completed his or her normal work shift and left the work station,or when prior notice is given but the work begins on the same day at least three hours after completion of the regular shift,the employee shall receive a minimum of three hours of call back pay. The three hours minimum,whether or not actually OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 8 8972166.1 OR040-030 worked,shall be paid at the rate of one and one half times the regular hourly rate.Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. ARTICLE 19. -STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work.Standby assignments shall first be made on a voluntary basis.A volunteer standby list shall be established by classification and job location. Standby assignments shall be made from the list of employees who are competent and experienced,in alphabetical order,on a rotating basis.In the event that no one volunteers,the District shall assign standby by job classification and work location from employees who are competent and experienced on a rotational basis.An employee placed on standby shall be compensated at the rate of three five hundred fe (34500)dollars per week,and shall receive Call Back pay when they are actually called to work. ARTICLE 20.—INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date.An open enrollment period shall be held annually. 20.3 Medical Insurance 20.3.1 The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan and a Preferred Provider Organization(PPO)medical insurance plan. 20.3.2 Regular,full-time employees: 20.3.2.1 The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee+1 dependent and full family premiums for the HMO and PPO medical plans.Any change in insurance rates shall be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District's sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.3.3 The District may reopen negotiations at any time during the term of the MOU to address the impact of the Affordable Care Act(ACA),provided that no change may be made by the District unless such change is either(1)mandated by the ACA,or(2)mutually agreed upon by the parties. 20.4 Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. 20.5 Short Term Disabilitv The District shall provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 9 8972166.1 OR040-030 20.6 Long Term Disability 20.6.1 The District shall provide a non-work related,long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability,not to exceed $5,000 per month,up to age 65,following a 90-day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.6.2 For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65.For participants age 65 and older,the maximum period of payment is specified.The specified periods and additional information about coverage is included in the District's long-term disability plan contract accession on the intranet. 20.6.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay.Employees may not receive short-term and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.7 Dental Insurance The District will contribute 80%of employee only and 80%of full family premiums for dental insurance. 20.8 Vision Insurance The District shall provide a vision insurance plan for regular,full-time employees and eligible dependents. 20.9 Retiring Employees 20.9.1 The District shall pay,for employees hired prior to July 1,1988,two and one-half(2.5)months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.9.2 In the event the District adds additional optional insurance plans,the District's share of the premium shall be the same as for existing plans as set forth above.In the event the District changes underwriters for existing insurance plans,the District's share of the premium shall be the same as for existing insurance plans as set forth above. 20.9.3 The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every ull year of ,... Commented[BSI]:Saliem-We did not discuss this at the continuous service up to a maximum of 25 years or$250 per month.Employees hired on or table,but we have updated this language(house keeping)to after August 1,2011 shall not be eligible for the retiree medical health premium offset. align with Ocsp's current practice.Are you OK with this update? 20.10 Health Retirement Account(HRA)Reopener: The District and the Group agree to reopen this Agreement to discuss HRA plan design and funding mechanism options,including District and/or employee funding, understanding the District is not making any commitment to District funding. ARTICLE 21.-REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts,employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 10 8972166.1 OR040-030 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21.4 Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. ARTICLE 22.-OVERTIME 22.1 Employees shall be notified as soon as practicable after the District decides upon the need for overtime or additional work.The District may require the performance of overtime. In the event no qualified employee wishes to work overtime,District's management may select employees with the ability to perform the work by inverse seniority.District managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. 22.2 For the purposes of overtime calculation,all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty(40)hours in a seven(7)day workweek is reached. ARTICLE 23.-PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following six months of employment without a break in service. Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position,and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his or her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of six months. The "probationary period"shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24.-PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position shall be filled as an open or promotional opportunity or recruitment.Whenever the District intends to fill a position by promotion,the District shall post the opportunity for a minimum often(10)business days. Employees must apply during the period of posting. Notices shall be posted on the District's intranet. 24.2 A promoted employee shall serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective date of the promotion.At any time during the promotional probationary period,an employee may be returned to his or her previous position.The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety(90)days.If an employee is promoted during his or her initial probationary period,the period shall be extended until at least the first day of the pay period six months after the effective date of the promotion. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 11 8972166.1 OR040-030 24.3 Promoted employees will receive the equivalent of a step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. -RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System(OCERS), wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1 Employees hired before September 21,1979:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12) months average earnings,past and future service. 25.' f f The rliRtFi Gt..411 A04R„8 tG pay A 5%fr...aF d the o ..1..,,00'o G0RtFib1_1tinR tO DGERC olo..fo.d to make 0 Re-time.de Gioi....W FeMaiR OR the PlaR G_ program. 25.1.2 Employees hired on or after September 21,1979 and before August 1,2011:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1,2011 and before January 1,2013:The District will contract with OCERS to provide the 1.667%@ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.3.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1,2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA)based on the highest consecutive thirty-six(36) months average earnings,past and future service. 25.1.4.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50%or more of their hours between 6:00 p.m.and 6:00 a.m.and who actually work that shift shall receive a shift differential of$2.50 per hour. ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 12 8972166.1 OR040-030 In years 0 through 1 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in District Policy. 27.1.3 Vacation leave begins after an employee has completed twenty sox(26)weeks Of continuous GFRditPd I.With 4 0 hnurs.Aftpr that tome,he eF she will aG(-;F'-'R VAGAt'GR hoi-IFS GOR-;O-.;tp-Rt With th above-chart—Vacation leave may only be utilized in increments of one- u4 arterhalf hour or more. Vacation leave is accrued for all paid hours,including hours actually worked and hours in a paid- leave payroll status. 27.1.4 When unpaid absences occur,vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked,and is applicable to all types of leave,whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours,it must be used prior to said December date,all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition.-Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee.It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury,or pregnancy,or to attend to the illness or injury of a family member as hereinafter defined;or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2 Method-Sick Leave Accrual. Full-time employees hired prior to November 27,1981,accrue paid sick leave at the rate of three point five(3.5)hours for each biweekly pay period of continuous service(ninety-one(91)hours per year). Full-time employees hired on or after November 27, 1981,accrue paid sick leave at the rate of three(3.0)hours for each biweekly pay period of continuous service(seventy-eight(78)hours per year),beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis asset forth inapplicable District Policy. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 13 8972166.1 OR040-030 27.2.4 When unpaid absences occur,sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked,and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Payoff-Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending inef October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule.Employees who retire or decease with twenty(20)years or more of service shall be paid at the one hundred percent (100%)rate for all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7 Permissible Uses-Sick leave may be applied only to: A. Absence due to illness,injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. C. Absence for the care of the employee's father,father-in-law,mother,mother-in-law,brother, sister,husband,wife,domestic partner,child,child of domestic partner,grandparent, grandchild,legal guardian,or any family member with whom the employee resides. D. Absence due to a job-related injury. E. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). 27.2.8 General Provisions-To qualify for sick leave pay,the employee must notify the District at or in advance of the time the employee is scheduled to report for duty.Minimum charge to the employee's sick leave account shall be one- ua arterhalf L25)hour and thereafter on RRe half hGW increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege.If notified in advance,the employee may be required,at any time,to furnish a certificate issued by a licensed physician or nurse,or other satisfactory evidence of illness; however,for absences of ten consecutive working days or more,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to Human Resources. Upon return to work,a written doctor's release must be submitted to Human Resources. For absences of one or more working days in an unpaid status,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to Human Resources. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 14 8972166.1 OR040-030 If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Act("FMLA")or the California Family Rights Act("CFRA"),the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time,including probationary,employee who is called for jury duty shall,upon request on prescribed forms,be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2 Prior to jury duty service,each employee must complete a time off request through the District's timesheet system and provide a copy of the summons to his or her supervisor.To be entitled to receive regular pay for such jury leave,the employee must report for work at the District for time not actually retained on jury unless there is less than'/z of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.4 Witness Leave 27.4.1 Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his or her presence as a witness,except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness,shall,upon approval of an online time off request,be entitled the time necessary to comply with such subpoena,provided any fees received for such service,exclusive of mileage,are submitted to the District for deposit in the General Fund of the District. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service,exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California,Sections 395-395.5 shall govern military leave. In general,current law provides that an employee having one(1)year or more service with a public entity is entitled to military leave with pay not exceeding thirty(30)days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay,not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system,any full-time employee,whether probationary or regular, shall receive a maximum of thirty-six(36)hours of paid time for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father,father-in-law,mother,step-mother,mother-in-law,brother,step-brother,sister,step- OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 15 8972166.1 OR040-030 sister,husband,wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner,grandchild,grandparent,foster parent,foster child,legal guardian,or any family member with whom the employee resides. With reasonable cause,€employees may be required to furnish evidence satisfactory to the District of the family member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six(6)months to the Director of Human Resources or designee,who has the discretion to grant or deny such requests. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of Service 1 5-9 10-14 15-19 20-24 25+ Supplemental Leave Hours 5 10 15 20 25 27.7.3 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.3.1 Supplemental Leave may be used in one-quarter(0.25)hour increments. 27.7.3.2 Any unused Supplemental Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 27.7.3.4 Any unused Supplemental Leave,within the fiscal year granted,is not subject to cash out or eligible for any mandatory payout. 27.7.3.5 Employees who cease to be part of the bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.3.6 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Hire/Transfer Date Percent July—September 100% October—December 75% January—March 50% April—June 25% ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of the District to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 28.2 Using the prescribed forms,approved by District management,any full-time,including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250) hours of service,may be granted an FMLA or CFRA leave-of-absence without pay,not to exceed twelve (12)weeks in a rolling twelve(12)month calendar period.A"rolling"twelve(12)month period is measured OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 16 8972166.1 OR040-030 backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five (5)consecutive working days,or for absences of ten(10)working days or more when using paid sick leave accruals. 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition shall be required to use all accruals,before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one(1)day. 28.3.2 Paid time off accruals may be used for the care of the employee's father,step-father,father-in-law, mother,step-mother,mother-in-law,brother,step-brother,sister,step-sister,husband,wife, domestic partner,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4 Permissible Uses 28.4.1 FMLA Leave.FMLA leave may be used for: 28.4.1.1 The birth of a child or to care for a newborn of an employee; 28.4.1.2 The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3 The care for the employee's father,step-father,father-in-law,mother,step-mother, mother-in-law,brother,step-brother,sister,step-sister,husband,wife,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner, grandchild,grandparent,legal guardian,or any family member with whom the employee resides who has a serious health condition,as defined in the Act; 28.4.1.4 The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee's family member or"next of kin"service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to twenty-six(26) weeks of unpaid leave during a single twelve(12)month period. 28.4.2 CFRA Leave.CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave,including the care of a domestic partner or child of a domestic partner,and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy,.2)leave due to a qualifying exigency,or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 17 8972166.1 OR040-030 28.4.3 General Provisions:Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28.4.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with Department of Labor(DOL)regulations. 28.4.5 Medical and Dental Premiums During FMLA and CFRA Leave,the District shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment,in full,within sixty(60)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA or CFRA Leave,the employee shall be reinstated to the same or a comparable position,unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,layoff),in which case the District's obligation to continue health and dental or other benefits shall cease. 28.4.7 District Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave.Married employees shall be limited to a combined total of twelve(12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.4.7.2 CFRA Leave.Married employees and employees in domestic partnerships will be limited to a combined total of twelve(12)weeks CFRA leave in a rollingtwelve(12) month calendar period for the care of a parent or newly born or placedChildl. Commented[LK2]:Saliem,we missed this clean-up 28.5 General Leave language in our discussions. This is a benefit to OCEA members;they are only limited to a combined 12 weeks of 28.5.1 Employees who have exhausted all aid time off accruals may request to be ranted a general leave related to bonding,NOT the care of a parent. Please P Y q 9 9 confirm the group is OK with this change. leave-of-absence by District management to attend to personal matters or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment,in full,within sixty(60)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work, placement in an alternative position,if available,shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay;however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 18 8972166.1 OR040-030 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an alternative position,or the employee is not willing to return to work,the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter,the employee shall be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service If an employee is dismissed per Section 28.6.3,and then is rehired to a position within the District within one(1)year,the District shall bridge the employee's service date. Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 28.6.5 Failure to Return to Work If,upon the expiration of FMLA or CFRA Leave,or any District approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee shall be considered to have automatically resigned from his or her position.In such cases,the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-of-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied,the provisions of law shall govern. ARTICLE 29.-CLASSIFICATION STUDIES 29.1 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy,and forward it to the Director of Human Resources,or designee,for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process;therefore,classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. District's management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.2 Y-Rating 29.2.1 All classification study findings regarding existing classifications are subject to approval by the General Manager;findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study,unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event,the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.2.2 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged(Y-rated)in accordance with the following table: Years of Service Term of Y-Rate OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 19 8972166.1 OR040-030 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years 29.2.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's staffing requirements,organizational structure or"bumping"associated with layoffs. Y- rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. 29.2.4 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary,or until the term of the Y-rate expires in accordance with the table above.If the Y-rate expires before the employee's salary falls within the range of the new classification,the employee shall be placed at the top of the range. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.3 Z-Rating 29.3.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of the District's comprehensive Classification Study results implemented effective July 12, 2002 will have their salary remain unchanged(z-rated)until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position is allocated to a higher paid classification,and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. ARTICLE 30.-DRIVER'S LICENSE 30.1 Employees who are required by the District to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies the District in a timely fashion,an attempt shall be made to place the employee in an equal or lower level position for which he or she is qualified. Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A&B licenses that are specifically required by the District. ARTICLE 31.-LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant,budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions in instances involving job restructuring,reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if the District finds it necessary to layoff personnel who were hired after January 1,2000 and for any layoffs which occur after November 1,2002. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 20 8972166.1 OR040-030 31.3 If,in the sole discretion of District management,personnel reductions are necessary,layoff order and recall lists shall be developed based upon job classification,priority of function,job performance,individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing,whenever possible. 31.4 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged,except that it may not exceed the maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencing personnel reductions,and shall be maintained for a period of two years from the date of layoff.Individuals shall be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled.When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five days,or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. ARTICLE 32.-LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions.An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33.-MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on District time and at District expense. An employee may submit an independent medical opinion regarding the individual's condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34.-MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35.-ACTING PAY 35.1 Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty(80)consecutive hours shall be eligible for a one step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the hour eighty-one(81),and continues until the assignment ends or the six(6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources,or designee. The eighty(80)hour eligibility period may be waived at the discretion of the General Manager. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 21 8972166.1 OR040-030 ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37.-PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department,by appointment.Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Director of Human Resources,or designee. It is the responsibility of each employee to keep the personal information in his or her file current,including home address,telephone number and person to contact in an emergency. ARTICLE 38.-BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2,which are designated for use by employee groups to post notices to District employees,provided that:(a)no controversial matter which is critical of or derogatory to the District,its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the OCEA shall remove its notices after a reasonable length of time;and(d)only a reasonable number of notices shall be posted. ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three(3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources,or designee,with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of the District permits the time away from assigned work. ARTICLE 40.-USE OF DISTRICT FACILITIES 40.1 District facilities may be used by the OCEA with prior notice to the Director of Human Resources,or designee,for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41.-SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge that during the negotiations,which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore,the District and the OCEA,for the term of this Agreement,except as otherwise provided herein,each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42.-IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an impasse exists in the meet and confer process,the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 22 8972166.1 OR040-030 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation:If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service,all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation,nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding:If the parties fail to resolve the dispute through mediation,the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Board Actions:If the parties fail to resolve the impasse,the dispute shall be sent to the District's Board of Directors for resolution. Each party shall submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. -SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement,in the event that any article,section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and OCEA shall meet and confer on the affected article,section or subsection. In such event,all other articles,sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. -UNIFORMS 44.1 The District shall provide and maintain ten(10)uniform pants and shirts,which may include the name of the employee and District's seal,at no cost to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings. Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45.-SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members.The District may adopt or implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation(DOT)Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver's license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3 District's Substance Abuse Policy OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 23 8972166.1 OR040-030 45.3.1 Any employee maybe subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. -DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues,initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. 46.2 The District shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition,the District shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48. -PEACEFUL RESOLUTION OF DISPUTES 48.1 During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it shall not lockout employees in this bargaining unit,and OCEA agrees that it shall neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in part from the full,faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51.-RESIGNATION 51.1 Voluntary written termination of employment with the District is automatically deemed irrevocable after seventy-two(72)hours from the receipt of the resignation,except by approval of the Director of Human Resources,or designee. The District may accept in writing any employee's verbal or written resignation at any time and deem such resignation irrevocable. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53. -LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association(OCEA)and the Orange County Sanitation District(OCSD)hereby agree to meet within two(2)months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD.Absent mutual agreement regarding the structure and process of a Labor Management Committee,the parties will defer discussions to the time when a successor MOU is raised. OCEA—Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 24 8972166.1 OR040-030 SIGNATURE PAGE 20196-2022a 9 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT Executed: OCEA ADMINISTRATIVE&CLERICAL UNIT ORANGE COUNTY SANITATION DISTRICT B r_ tmerre,Saliem Aregave,Labor Relations Laura Drottz Kalty,LeadChiet Negotiator Representative 12^Qrp'XXXReed Calvo,AdrniR' * *^*�* - Celia Chandler,Director of Human Resources Ass'stan Lead Storekeeper Beatrice Mitchell,Administrative Assistant Laura Maravilla,Human Resources&Risk Manager ReSGU s ARaly64C ..o. Andrew Nau,Human Resources Supervisor daaiae AgWwjhys DeVries,grlasipal SeaierPrincipal Human Resources Analyst au'e Klh4e Stephanie Barron,Senior Human Resources Analyst OCEA-Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 25 9972166.1 OR040-030 Exhibit A ADMINISTRATIVE AND CLERICAL UNIT Effective Effective Effective Pay 85JU1 619 73-Jul-3720 62-JUI.1821 Classification Grade MIN MAX MIN I MAX MIN MAX Executive Assistant 69 $26 48 $44.244 $27-.29 $4545 $88-32 46:59$5 39.47 7.99 40.65 49.43 41.87 0.91 Graphics Designer 69 $39.47 $47.99 $40.65 $49.43 $41.87 $50.91 Administrative Assistant 67 $34.74 $42-� $3658 $43.24 $3647 $44324 37.56 5.65 38.69 47.02 39.85 8.43 Contracts/Purchasing Assistant 67 37.56 45.65$ $38.69 $47.02 $39.85 148.43$ $34.73 Q 19 $35.58 $43.24 $36.47 44.32 Payroll Technician 67 37.56 45.65$ $38.69 $47.02 $39.85 8.43$ $34.73 4219 $35.56 $43.24 $36.47 44.32 6raphiss-6eerdi Rate r 66 $33..89 $4447 $34.73 $42.29 $35.69 $43.26 Lead Storekeeper 62 $39-" $37:294 $34-45 $39-.22 $32.24 $39-4 33.21 0.36 34.21 41.57 35.24 2.82 Accounting Assistant II 58 $27.79 $33783 $28-48 $34.62 $29:1-9 $35-493 30.07 6.55 30.97 37.65 31.90 8.78 Senior Storekeeper 58 30.07 126.55$ $30.97 $37.65 $31.90 138.78$ $27.79 22 78 $29..48 $34.62 $29.1-9 35 Q Program Assistant 56 $2R 47 $32453 $2733 $22 95 $27.81 $33773 28.64 4.78 29.50 35.82 30.39 6.89 Accounting Assistant 1 54 $ 5.17 $38:603 $25:80 $21-37 $26-45 $32.453 27.24 3.11 28.06 34.10 28.90 5.12 Storekeeper 52 $23.97 $29 2 $24-57 $29:88 $25,18 $39=833 25.94 1.55 26.72 32.50 27.52 3.48 Office Assistant 50 $�2 $27.733 $23b29 $2�42 $23.97 $29,133 24.69 0.00 25.43 30.90 26.19 1.83 OCEA-Administrative/Clerical MOU July 1,20196 to June 30,20224-9 Page 26 8972166.1 OR040-030 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR TH E TECHNICAL SERVICES UNIT July 1, 20196 through June 30, 20224-9 8972311.1 OR040-030 TABLE OF CONTENTS ARTICLE 1.-RECOGNITION.................................................................................................................................1 ARTICLE 2.-DURATION.......................................................................................................................................1 ARTICLE 3.-SUCCESSOR AGREEMENT...........................................................................................................1 ARTICLE4.-OCEA ACCESS................................................................................................................................1 ARTICLE 5.-OCEA RIGHTS.................................................................................................................................2 ARTICLE 6.--DISTRICT RIGHTS........................................................................................................................2 ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT.....................................................................................2 ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT..........................................................................................2 ARTICLE9.-SAFETY............................................................................................................................................2 ARTICLE 10.-DISCIPLINE AND DISMISSAL......................................................................................................3 ARTICLE 11.-GRIEVANCE PROCEDURE...........................................................................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE.............................................................................................5 ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION......................................................................6 ARTICLE 14.-SEVERANCE PAY.........................................................................................................................7 ARTICLE 15.-DEFERRED COMPENSATION......................................................................................................7 ARTICLE16.-HOLIDAYS......................................................................................................................................7 ARTICLE 17.-=HOURS OF WORK......................................................................................................................8 ARTICLE 18.-CALL-BACK PAY..........................................................................................................................8 ARTICLE 19.-STANDBY PAY..............................................................................................................................8 ARTICLE20.--INSURANCE................................................................................................................................9 20.34 MEDICAL INSURANCE...............................................................................................................................9 20.45 LIFE INSURANCE......................................................................................................................................5 20.566, SHORT TERM DISABILITY..........................................................................................................................9 20.67- LONG TERM DISABILITY............................................................................................................................9 20.79 DENTAL INSURANCE...............................................................................................................................10 20.89 VISION INSURANCE................................................................................................................................10 20.9 RETIRING EMPLOYEES...........................................................................................................................10 20.10 HEALTH RETIREMENT ACCOUNT REOPENER............................................................................................10 ARTICLE 21.-REIMBURSEMENT ACCOUNT...................................................................................................10 21.2 GROUP INSURANCE PREMIUMS...............................................................................................................10 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT............................................................................................10 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT..............................................................................................10 ARTICLE 22.-OVERTIME...................................................................................................................................11 ARTICLE 23.-PROBATIONARY PERIOD..........................................................................................................11 ARTICLE 24.-PROMOTIONS..............................................................................................................................11 ARTICLE 25.-RETIREMENT...............................................................................................................................11 ARTICLE 26.-SHIFT DIFFERENTIAL.................................................................................................................12 ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY..............................................................................................12 27.1 VACATION LEAVE...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................13 27.3 JURY DUTY LEAVE.................................................................................................................................14 27.4 WITNESS LEAVE....................................................................................................................................15 27.5 MILITARY LEAVE....................................................................................................................................15 27.6 BEREAVEMENT LEAVE............................................................................................................................15 27.7 SUPPLEMENTAL LEAVE...........................................................................................................................15 ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY.......................................................................................16 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................16 28.4 PERMISSIBLE USES................................................................................................................................17 28.5 GENERAL LEAVE....................................................................................................................................18 28.6 RETURN TO WORK POLICY.....................................................................................................................18 28.7 COMPLIANCE WITH LAW.........................................................................................................................19 ARTICLE 29.-CLASSIFICATION STUDIES.......................................................................................................19 ARTICLE 30.-DRIVER'S LICENSE.....................................................................................................................20 ARTICLE 31.-LAYOFF PROCEDURE................................................................................................................20 ARTICLE 32.-LIGHT DUTY.................................................................................................................................21 ARTICLE 33.-MEDICAL EXAMINATION...........................................................................................................21 ARTICLE 34.-MILEAGE ALLOWANCE.............................................................................................................21 OCEA-Technical Services MOU July 1,20194 to June 30,202246 Pagei 8972311.1 OR040-030 ARTICLE 35.-ACTING PAY................................................................................................................................21 ARTICLE36...........................................................................................................................................................21 ARTICLE 37.-PERSONNEL FILES....................................................................................................................21 ARTICLE 38.--BULLETIN BOARDS.................................................................................................................22 ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................22 ARTICLE 40.-USE OF DISTRICT FACILITIES..................................................................................................22 ARTICLE 41.-SCOPE OF BARGAINING...........................................................................................................22 ARTICLE 42.-IMPASSE PROCEDURES...........................................................................................................22 ARTICLE 43.-SEVERABILITY............................................................................................................................23 ARTICLE44.-UNIFORMS...................................................................................................................................23 ARTICLE 45.-SUBSTANCE ABUSE POLICY....................................................................................................23 ARTICLE 46.-DUES DEDUCTIONS...................................................................................................................23 ARTICLE47...........................................................................................................................................................23 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES.................................................................................24 ARTICLE49...........................................................................................................................................................24 ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY................................................................24 ARTICLE51.-RESIGNATION.............................................................................................................................24 ARTICLE52...........................................................................................................................................................24 ARTICLE 53.-LABOR MANAGEMENT COMMITTEE.........................................................................24 SIGNATUREPAGE...............................................................................................................................................25 EXHIBITA.............................................................................................................................................................26 OCEA—Technical Services MOU July 1,20196to June 30,202249 Page ii 8972311.1 OR040-030 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT In accordance with the provisions of California Government Code Sections 3500,et seq.,and Resolution No.75-127 of the Joint Board of Directors,the District's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association(OCEA)for the Technical Services Unit.These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. -RECOGNITION 1.1 This Agreement,effective July 1,20196,is entered into between the Orange County Sanitation District, referred to hereinafter as the"District,"and the Orange County Employees Association,referred to hereinafter as"OCEA." 1.2 The District recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications,as set forth in Exhibit"A"(attached hereto and incorporated by reference),as well as additional classes as may be added hereafter by the District. ARTICLE 2.-DURATION 2.1 This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30,20224-9. Any issue regarding the question of exclusive representation of a recognized employee organization shall be brought pursuant to the Employer-Employee Relations Resolution(EERR),Resolution No.OCSD 99-24.This Agreement Sh expiration. ARTICLE 3.-SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4.-OCEA ACCESS 4.1 An OCEA Representative shall have access to the District's facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources,or designee. 4.2 The OCEA shall provide the Director of Human Resources,or designee,with a list of Representatives who are authorized to request access under this article,and shall notify the Director of any changes in that list. 4.3 OCEA access shall not interfere with the District's operations,or with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated as confidential or secure. OCEA—Technical Services MOU July 1,20196 to June 30,202249 Page 1 8972311.1 OR040-030 ARTICLE 5. -OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources,or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to the District by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither the District nor the OCEA shall interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6.-DISTRICT RIGHTS 6.1 District inherent rights,powers,functions,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of its constituent departments, commissions and boards;set standards of service,determine the procedures and standards of selection for employment and promotion;establish and implement performance standards;direct its employees; take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted;determine the content of job classifications;classify and reclassify positions;take all necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 District retains all authority and rights conferred on it by law,or other legal sources,except to the extent that such authority is explicitly waived by the express terms of this agreement.District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude OCEA from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race,color,religion,national origin,ancestry,sex,gender,gender identity,gender expression,sexual orientation,age,physical or mental disability,medical condition,genetic information, marital status,or military or veteran status,or any other lawfully protected class. To the extent required by law or by the District's rules or regulations,this provision of the Agreement shall be applied to all members of the unit without regard to any protected classification. ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT 8.1 The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families,smoking and the use of tobacco(cigarettes,cigars,e-cigarettes["vaping"]and related tobacco products and technologies)is not acceptable within District facilities,and may occur only in areas posted for smoking. ARTICLE 9.-SAFETY 9.1 It is the duty of the District to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner.It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 2 8972311.1 OR040-030 alert to unsafe practices,equipment,and conditions,and to follow the safety regulations and requirements of the District,and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10.-DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit:verbal reprimand,written reprimand,suspension without pay;reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay,a reduction in pay,a demotion to a classification with a lower pay grade,or dismissal.The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail,which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action;(3)a copy of the charges and materials upon which the action is based;and,(4)a statement of the employee's right to respond,either verbally or in writing to the person initially imposing the discipline or to a District management representative with authority to make an effective recommendation on the proposed action,the person to whom any response must be directed,and the fact that such response must be received within ten(10)business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action,the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response,the District shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described in the Notice of Intent;however,the District may reduce discipline without further notice.Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies&Procedures Manual. 10.7 Dismissal shall be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the influence of drugs or alcohol,theft or misappropriation of District property or funds,fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources,or designee, within ten(10)business days following the effective date of the disciplinary action(for suspensions,the effective date shall be the first business day following the final day of the suspension).The Director of Human Resources,or designee,shall schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of the District. The hearing officer will provide a written,advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 3 8972311.1 OR040-030 10.9 Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four(24)months subsequent to the date of issuance,provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources,or designee,agrees to remove disciplinary action documentation from an employee's personnel file,such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reclassifications,"bumping"associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11.-GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bring a grievance through this procedure.Grievances brought by two(2) or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the OCEA,be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. 11.4 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure,unless specifically agreed otherwise by the OCEA and the employee. The District shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.4.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event. The supervisor,or designee,shall attempt to resolve the issues surrounding the complaint,and respond in writing to the employee within ten(10)days. 11.4.2 Step 2. If the grievance is not settled at Step 1,it may be submitted in writing to the employee's Division Manager,or designee.This request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1.A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The written grievance must: a) Identify the specific management act to be reviewed; b) Specify how the employee was adversely affected; c) List the specific provisions of the MOU that were allegedly violated and state how they were violated; d) Specify the remedy requested;and OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 4 8972311.1 OR040-030 e) Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.2.1 The Division Manager,or designee,shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.4.3 Step 3. If a grievance is not settled under Step 1 or 2,it may be presented to the employee's Department Director,or designee,for review and written response.The request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1 or 2,and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The employee's Department Director,or designee,shall respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.4 Step 4. If the grievance cannot be resolved under Step 3,it may be presented to an Assistant General Manager,or designee,within five(5)days from the date the Step 3 finding was issued. The Assistant General Manager,or designee,shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.4.5 Step 5.Appeal to the General Manager,or designee,is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4,it may be presented to the General Manager,or designee,within five(5)days from the date the Step 4 finding was issued.The General Manager, or designee,shall respond in writing to the employee within ten(10)days after the date of the grievance is received. 11.5 General Provisions:An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA,the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility. Absence from work shall be approved only if it does not cause disruption to District operations.However,if the time requested cannot be provided,an alternate time shall be arranged. 11.5.1 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step.If a grievance is not presented or appealed within the time limits,it shall be considered resolved on the basis of the preceding response.The Director of Human Resources,or designee,may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.5.2 Resolution may be agreed upon at any stage of the grievance process. However,the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12.-PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure.Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision,and provide a written response within five days from the date they were notified of the problem. 12.3 If the problem is not resolved to the employee's satisfaction,the employee may file a written statement concerning the problem with the Director of Human Resources,or designee,within ten(10)days of receipt of the supervisor's decision. Upon request of either party,a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten(10)days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Director of Human Resources,or designee,is final. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 5 8972311.1 OR040-030 ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay—Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2 Ineligible-Employees who are placed on a Performance Improvement Plan(PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program:The performance management program includes three(3)rating categories(exceeds,proficient,needs improvement)for performance appraisals. 13.3.2 Development Pay—Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: • Education—Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive$20.76 per pay period for an associate degree and$41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$41.53 per pay period. • Certification/License—Eligible employees who obtain or who have obtained a District approved certification or license will receive$15 247.62 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses.The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $45722286 per pay period. 13.3.2.1 The overall maximum Development Pay for education,certification and/or licenses is fixed at$87.2564b9 per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 20196,employees under this Agreement will receive salary range adjustments at a flat rate of 3_02-.5%. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 6 8972311.1 OR040-030 13.4.2 Effective the first pay period in July 202047,employees under this Agreement will receive salary range adjustments at a flat rate of 3_05%. 13.4.3 Effective the first pay period in July 202149,employees under this Agreement will receive salary range adjustments at a flat rate of 3_02.5%. ARTICLE 14.-SEVERANCE PAY 14.1 Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee shall be notified in writing two(2)weeks prior to the effective separation date.In the event the District does not give such notification,the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time,regular employees shall be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2 Employees in limited term or part-time positions,probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. ARTICLE 15.-DEFERRED COMPENSATION 15.1 Employees may participate in the District's approved deferred compensation plan subject to IRS requirements,and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16.-HOLIDAYS 16.1 The days listed below are observed by the District as holidays.Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday,the employee will be paid at the employee's regular rate of pay for the holiday,and will also receive overtime pay at the rate of one and one half(1.5)times their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay if requested by December 31 of the prior year on the Holiday Comp Cashout Form.When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). HOLIDAY New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 7 8972311.1 OR040-030 Day before Christmas Christmas Day Floating Holiday" 16.2 Employees may elect one(1)day during each year as a"Floating Holiday".New employees shall be granted a"Floating Holiday"on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter(January-March) 100% 2"d Quarter(April-June) 75% 3rd Quarter(July-September) 50% 41h Quarter(October-December) 0% 16.3 Employees must use the"Floating Holiday"within the calendar year it is granted.Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17.—HOURS OF WORK 17.1 For record keeping and accounting purposes,the"workweek"for full-time employees is 40 hours per 168- hour period,to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek(9/80 schedule),five 8-hour days each workweek(10/80),four 10-hour days each workweek(8/80),or three 12-hour days and one 4- hour day each workweek(7/80). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift,and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed,he or she shall receive two hours pay at the overtime rate. 17.3 The District may,at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee. ARTICLE 18.-CALL-BACK PAY 18.1 When an employee is called back to work by District management without prior notice,and the employee has completed his or her normal work shift and left the work station,or when prior notice is given but the work begins on the same day at least three hours after completion of the regular shift,the employee shall receive a minimum of three hours of call back pay. The three hours minimum,whether or not actually worked,shall be paid at the rate of one and one half times the regular hourly rate.Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. ARTICLE 19. -STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work.Standby assignments shall first be made on a voluntary basis.A volunteer standby list shall be established by classification and job location. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 8 8972311.1 OR040-030 Standby assignments shall be made from the list of employees who are competent and experienced,in alphabetical order,on a rotating basis.In the event that no one volunteers,the District shall assign standby by job classification and work location from employees who are competent and experienced on a rotational basis.An employee placed on standby shall be compensated at the rate of thfee-five hundred forty five(34500)dollars per week,and shall receive Call Back pay when they are actually called to work. ARTICLE 20.-INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date.An open enrollment period shall be held annually. 20.3 Medical Insurance 20.3.1 The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan and a Preferred Provider Organization(PPO)medical insurance plan. 20.3.2 Regular,full-time employees: 20.3.2.1 The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee+1 dependent and full family premiums for the HMO and PPO medical plans.Any change in insurance rates shall be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District's sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.3.3 The District may reopen negotiations at any time during the term of the MOU to address the impact of the Affordable Care Act(ACA),provided that no change may be made by the District unless such change is either(1)mandated by the ACA,or(2)mutually agreed upon by the parties. 20.4 Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. 20.5 Short Term Disability The District shall provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. 20.6 Long Term Disability 20.6.1 The District shall provide a non-work related,long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability,not to exceed $5,000 per month,up to age 65,following a 90-day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.6.2 For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65.For participants age 65 and older,the maximum period of payment is specified.The specified periods and additional information about coverage is included in the District's long-term disability plan contract accession on the intranet. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 9 8972311.1 OR040-030 20.6.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay.Employees may not receive short-term and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.7 Dental Insurance The District will contribute 80%of employee only and 80%of full family premiums for dental insurance. 20.8 Vision Insurance The District shall provide a vision insurance plan for regular,full-time employees and eligible dependents. 20.9 Retiring Employees 20.9.1 The District shall pay,for employees hired prior to July 1,1988,two and one-half(2.5)months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.9.2 In the event the District adds additional optional insurance plans,the District's share of the premium shall be the same as for existing plans as set forth above.In the event the District changes underwriters for existing insurance plans,the District's share of the premium shall be the same as for existing insurance plans as set forth above. 20.9.3 The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every ull year of . — Commented[BS1]:Saliem-We did not discuss this at the continuous service up to a maximum of 25 years or$250 per month.Employees hired on or table,but we have updated this language(house keeping)to after August 1,2011 shall not be eligible for the retiree medical health premium offset. align with OCSID's current practice.Are you OK with this update? 20.10 Health Retirement Account(HRA)Reopener: The District and the Group agree to reopen this Agreement to discuss HRA plan design and funding mechanism options,including District and/or employee funding, understanding the District is not making any commitment to District funding. ARTICLE 21.-REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts,employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21.4 Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 10 8972311.1 OR040-030 ARTICLE 22.-OVERTIME 22.1 Employees shall be notified as soon as practicable after the District decides upon the need for overtime or additional work.The District may require the performance of overtime. In the event no qualified employee wishes to work overtime,District's management may select employees with the ability to perform the work by inverse seniority.District managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. 22.2 For the purposes of overtime calculation,all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty(40)hours in a seven(7)day workweek is reached. ARTICLE 23. -PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following six months of employment without a break in service. Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position,and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his or her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of six months. The .'probationary period"shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24.-PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position shall be filled as an open or promotional opportunity or recruitment.Whenever the District intends to fill a position by promotion,the District shall post the opportunity for a minimum often(10)business days. Employees must apply during the period of posting. Notices shall be posted on the District's intranet. 24.2 A promoted employee shall serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective date of the promotion.At any time during the promotional probationary period,an employee may be returned to his or her previous position.The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety(90)days.If an employee is promoted during his or her initial probationary period,the period shall be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.3 Promoted employees will receive the equivalent of a step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. -RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System(OCERS), wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 11 8972311.1 OR040-030 25.1.1 Employees hired before September 21,1979:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12) months average earnings,past and future service. �Thp Di,;triAt% ill..ARtO..,,o tG y n 5 r,., aFd the o pleyep ntrabutm n fA QCF�C 01o.4o1 to wake 0 0♦ornp idonio:.R tG remaiR OR the DlaR G_ pFegFam. 25.1.2 Employees hired on or after September 21,1979 and before August 1,2011:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1,2011 and before January 1,2013:The District will contract with OCERS to provide the 1.667%@ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.3.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1,2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA)based on the highest consecutive thirty-six(36) months average earnings,past and future service. 25.1.4.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50%or more of their hours between 6:00 p.m.and 6:00 a.m.and who actually work that shift shall receive a shift differential of$2.50 per hour. ARTICLE 27. -LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 1 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 12 8972311.1 OR040-030 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in District Policy. 27.1.3 Vacation leave begins after an employee has completed twenty 6iX(26)weeks of continuous .;P.PVAP,. Aftprthe ndh-xid,-ial's first twenty sox(26)weeks of sei:v*Ge,his er her aGGGunt will be a ove-Gh '.Vacation leave may only be utilized in increments of one- ug arterhalf hour or more. Vacation leave is accrued for all paid hours,including hours actually worked and hours in a paid- leave payroll status. 27.1.4 When unpaid absences occur,vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked,and is applicable to all types of leave,whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours,it must be used prior to said December date,all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition.-Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee.It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury,or pregnancy,or to attend to the illness or injury of a family member as hereinafter defined;or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2 Method-Sick Leave Accrual. Full-time employees hired prior to November 27,1981,accrue paid sick leave at the rate of three point five(3.5)hours for each biweekly pay period of continuous service(ninety-one(91)hours per year). Full-time employees hired on or after November 27, 1981,accrue paid sick leave at the rate of three(3.0)hours for each biweekly pay period of continuous service(seventy-eight(78)hours per year),beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable District Policy. 27.2.4 When unpaid absences occur,sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked,and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Payoff-Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending inef October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued Sick Leave Hours Rate of Payoff 0-100 0% OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 13 8972311.1 OR040-030 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule.Employees who retire or decease with twenty(20)years or more of service shall be paid at the one hundred percent (100%)rate for all accrued and unused sick leave.Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7 Permissible Uses-Sick leave may be applied only to: A. Absence due to illness,injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. C. Absence for the care of the employee's father,father-in-law,mother,mother-in-law,brother, sister,husband,wife,domestic partner,child,child of domestic partner,grandparent, grandchild,legal guardian,or any family member with whom the employee resides. D. Absence due to a job-related injury. E. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). 27.2.8 General Provisions-To qualify for sick leave pay,the employee must notify the District at or in advance of the time the employee is scheduled to report for duty.Minimum charge to the employee's sick leave account shall be one- uarter hour and thereafter On ono ha"ho- increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege.If notified in advance,the employee may be required,at any time,to furnish a certificate issued by a licensed physician or nurse,or other satisfactory evidence of illness; however,for absences of ten consecutive working days or more,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to Human Resources. Upon return to work,a written doctor's release must be submitted to Human Resources. For absences of one or more working days in an unpaid status,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to Human Resources. If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Act("FMLA")or the California Family Rights Act("CFRA"),the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time,including probationary,employee who is called for jury duty shall,upon request on prescribed forms,be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2 Prior to jury duty service,each employee must complete a time off request through the District's timesheet system and provide a copy of the summons to his or her supervisor.To be entitled to receive regular pay for such jury leave,the employee must report for work at the District for time OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 14 8972311.1 OR040-030 not actually retained on jury unless there is less than'/z of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.4 Witness Leave 27.4.1 Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his or her presence as a witness,except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness,shall,upon approval of an online time off request,be entitled the time necessary to comply with such subpoena,provided any fees received for such service,exclusive of mileage,are submitted to the District for deposit in the General Fund of the District. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service,exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California,Sections 395-395.5 shall govern military leave. In general,current law provides that an employee having one(1)year or more service with a public entity is entitled to military leave with pay not exceeding thirty(30)days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay,not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system,any full-time employee,whether probationary or regular, shall receive a maximum of thirty-six(36)hours of paid time for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father,father-in-law,mother,step-mother,mother-in-law,brother,step-brother,sister,step- sister,husband,wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner,grandchild,grandparent,foster parent,foster child,legal guardian,or any family member with whom the employee resides. With reasonable cause,employees may be required to furnish evidence satisfactory to the District of the family member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six(6)months to the Director of Human Resources or designee,who has the discretion to grant or deny such requests. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 15 8972311.1 OR040-030 Years of Service 5-9 10-14 15-19 20-24 25, Supplemental Leave Hours 5 10 15 20 25 27.7.3 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.3.1 Supplemental Leave may be used in one-quarter(0.25)hour increments. 27.7.3.2 Any unused Supplemental Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 27.7.3.4 Any unused Supplemental Leave,within the fiscal year granted,is not subject to cash out or eligible for any mandatory payout. 27.7.3.5 Employees who cease to be part of the bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.3.6 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Hire/Transfer Date Percent July—September 100% October—December 75% January—March 50% April—June 25% ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of the District to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 28.2 Using the prescribed forms,approved by District management,any full-time,including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250) hours of service,may be granted an FMLA or CFRA leave-of-absence without pay,not to exceed twelve (12)weeks in a rolling twelve(12)month calendar period.A"rolling"twelve(12)month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five (5)consecutive working days,or for absences of ten(10)working days or more when using paid sick leave accruals. 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition shall be required to use all accruals,before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one(1)day. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 16 8972311.1 OR040-030 28.3.2 Paid time off accruals may be used for the care of the employee's father,step-father,father-in-law, mother,step-mother,mother-in-law,brother,step-brother,sister,step-sister,husband,wife, domestic partner,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4 Permissible Uses 28.4.1 FMLA Leave.FMLA leave may be used for: 28.4.1.1 The birth of a child or to care for a newborn of an employee; 28.4.1.2 The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3 The care for the employee's father,step-father,father-in-law,mother,step-mother, mother-in-law,brother,step-brother,sister,step-sister,husband,wife,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner, grandchild,grandparent,legal guardian,or any family member with whom the employee resides who has a serious health condition,as defined in the Act; 28.4.1.4 The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee's family member or"next of kin"service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to twenty-six(26) weeks of unpaid leave during a single twelve(12)month period. 28.4.2 CFRA Leave.CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave,including the care of a domestic partner or child of a domestic partner,and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy,.2)leave due to a qualifying exigency,or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28.4.3 General Provisions:Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28.4.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with Department of Labor(DOL)regulations. 28.4.5 Medical and Dental Premiums During FMLA and CFRA Leave,the District shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 17 8972311.1 OR040-030 employee shall be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment,in full,within sixty(60)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA or CFRA Leave,the employee shall be reinstated to the same or a comparable position,unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,layoff),in which case the District's obligation to continue health and dental or other benefits shall cease. 28.4.7 District Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave.Married employees shall be limited to a combined total of twelve(12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.4.7.2 CFRA Leave.Married employees and employees in domestic partnerships will be limited to a combined total of twelve(12)weeks CFRA leave in a rolling twelve(12) month calendar period for the care of a parent or newly born or placed�hild__ Commented[LK2]:Saliem,we missed this clean-up 28.5 General Leave language in our discussions. This is a benefit to OCEA members;they are only limited to a combined 12 weeks of 28.5.1 Employees who have exhausted all aid time off accruals may request to be ranted a general leave related to bonding,NOT the care of a parent. Please P Y q 9 9 confirm the group is OK with this change. leave-of-absence by District management to attend to personal matters or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment,in full,within sixty(60)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work, placement in an alternative position,if available,shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay;however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an alternative position,or the employee is not willing to return to work,the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter,the employee shall be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service If an employee is dismissed per Section 28.6.3,and then is rehired to a position within the District within one(1)year,the District shall bridge the employee's service date. Bridging of service OCEA—Technical Services MOU July 1,20196 to June 30,202249 Page 18 8972311.1 OR040-030 procedures involve adding the total number of days away from work to the employee's original date of hire. 28.6.5 Failure to Return to Work If,upon the expiration of FMLA or CFRA Leave,or any District approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee shall be considered to have automatically resigned from his or her position.In such cases,the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-of-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied,the provisions of law shall govern. ARTICLE 29.-CLASSIFICATION STUDIES 29.1 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy,and forward it to the Director of Human Resources,or designee,for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process;therefore,classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. District's management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.2 Y-Rating 29.2.1 All classification study findings regarding existing classifications are subject to approval by the General Manager;findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study,unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event,the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.2.2 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged(Y-rated)in accordance with the following table: Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years 29.2.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's staffing requirements,organizational structure or"bumping"associated with layoffs. Y- OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 19 8972311.1 OR040-030 rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. 29.2.4 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary,or until the term of the Y-rate expires in accordance with the table above.If the Y-rate expires before the employee's salary falls within the range of the new classification,the employee shall be placed at the top of the range. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.3 Z-Ratinq 29.3.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of the District's comprehensive Classification Study results implemented effective July 12, 2002 will have their salary remain unchanged(z-rated)until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position is allocated to a higher paid classification,and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. ARTICLE 30.-DRIVER'S LICENSE 30.1 Employees who are required by the District to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies the District in a timely fashion,an attempt shall be made to place the employee in an equal or lower level position for which he or she is qualified. Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A&B licenses that are specifically required by the District. ARTICLE 31.-LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant,budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions in instances involving job restructuring,reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if the District finds it necessary to layoff personnel who were hired after January 1,2000 and for any layoffs which occur after November 1,2002. 31.3 If,in the sole discretion of District management,personnel reductions are necessary,layoff order and recall lists shall be developed based upon job classification,priority of function,job performance,individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing,whenever possible. 31.4 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged,except that it may not exceed the maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencing personnel reductions,and shall be maintained for a period of two years from the date of layoff.Individuals shall be placed on the list in the OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 20 8972311.1 OR040-030 inverse order of layoff,so that the last person laid off is the first recalled.When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five days,or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. ARTICLE 32. -LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions.An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33.-MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on District time and at District expense. An employee may submit an independent medical opinion regarding the individual's condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34.-MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35.-ACTING PAY 35.1 Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty(80)consecutive hours shall be eligible for a one step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the hour eighty-one(81),and continues until the assignment ends or the six(6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources,or designee. The eighty(80)hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. -PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department,by appointment.Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Director of Human Resources,or designee. It is the responsibility of each employee to keep the personal information OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 21 8972311.1 OR040-030 in his or her file current,including home address,telephone number and person to contact in an emergency. ARTICLE 38.--BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2,which are designated for use by employee groups to post notices to District employees,provided that:(a)no controversial matter which is critical of or derogatory to the District,its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the OCEA shall remove its notices after a reasonable length of time;and(d)only a reasonable number of notices shall be posted. ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three(3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources,or designee,with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of the District permits the time away from assigned work. ARTICLE 40.-USE OF DISTRICT FACILITIES 40.1 District facilities may be used by the OCEA with prior notice to the Director of Human Resources,or designee,for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. -SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge that during the negotiations,which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore,the District and the OCEA,for the term of this Agreement,except as otherwise provided herein,each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42.-IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an impasse exists in the meet and confer process,the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation:If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service,all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation,nor take any public position at any time concerning the issues. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 22 8972311.1 OR040-030 43.3.2 Fact-Finding:If the parties fail to resolve the dispute through mediation,the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Board Actions:If the parties fail to resolve the impasse,the dispute shall be sent to the District's Board of Directors for resolution. Each party shall submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. -SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement,in the event that any article,section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and OCEA shall meet and confer on the affected article,section or subsection. In such event,all other articles,sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. -UNIFORMS 44.1 The District shall provide and maintain ten(10)uniform pants and shirts,which may include the name of the employee and District's seal,at no cost to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings. Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45.-SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members.The District may adopt or implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation(DOT)Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver's license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3 District's Substance Abuse Policv 45.3.1 Any employee maybe subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46.-DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues,initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 23 8972311.1 OR040-030 46.2 The District shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition,the District shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48. -PEACEFUL RESOLUTION OF DISPUTES 48.1 During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it shall not lockout employees in this bargaining unit,and OCEA agrees that it shall neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in part from the full,faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51.-RESIGNATION 51.1 Voluntary written termination of employment with the District is automatically deemed irrevocable after seventy-two(72)hours from the receipt of the resignation,except by approval of the Director of Human Resources,or designee. The District may accept in writing any employee's verbal or written resignation at any time and deem such resignation irrevocable. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53.-LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association(OCEA)and the Orange County Sanitation District(OCSD)hereby agree to meet within two(2)months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD.Absent mutual agreement regarding the structure and process of a Labor Management Committee,the parties will defer discussions to the time when a successor MOU is raised. OCEA—Technical Services MOU July 1,20196 to June 30,20224-9 Page 24 8972311.1 OR040-030 SIGNATURE PAGE 20196—2022a 9 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT Executed: OCEA TECHNICAL SERVICES UNIT ORANGE COUNTY SANITATION DISTRICT B r_ tmerre,Saliem Aregave,Labor Relations Laura Drottz Kalty,Chief Lead Negotiator Representative Joe Vallone,Information Technology Celia Chandler,Director of Human Resources Technician II Formatted Table Laura Maravilla,Human Resources&Risk Manager Ana.o,.,nl ,, o.; �I R86e Y s ARalyo4Cnon Ion 0%12l M Aa,,inistrativo Assistant Andrew Nau,Human Resources Supervisor I a m MaFa dlla Human Ro n o K Risk SupervisorManaq 'a^'^e AgWwThys DeVries,PFlnsipal SenieFPrincipal Human Resources Analyst Laurie e Stephanie Barron,Senior Human Resources Analyst OCEA—Technical Services MOU July 1,20196 to June 30,202249 Page 25 8972311.1 OR040-030 Exhibit A TECHNICAL SERVICES UNIT Effective Effective Effective Pay 85JU1 619 73Jul-1720 62-JuI 821 Classification Grade MIN MAX MIN MAX MIN MAX Lead Source Controllnsoector 77 $48.09 $58.46 $49.53 $60.21 $51.02 $62.02 Data Management Technician II 75 $4229 $54-405 $43.39 $52.9 $44.43 45.76 5.63 47.13 57.30 48.54 9.02 Source Control Inspector II 73 $40_3 $48.825 $4t:24 $59 4 $4227 $51-395 43.54 2.93 44.85 54.52 46.20 6.16 Data Management Technician 1 71 $38.29 $46-.555 $39.25 $47:74 $40.23 $48.905 41.44 0.37 42.68 51.88 43.96 3.44 Source Control Inspector 69 $3648 $44`,344 $37b°9 $45-45 $38.32 46-.545 39.47 7.99 40.65 49.43 41.87 0.91 Information Technology 65 $33-04 $49 154 $33.67 $41-:15 $34-2 $42� Technician II 35.76 3.45 36.83 44.75 37.93 6.09 Environmental Technician 61 $29-92 $36=383 $30.67 $37-:2@ $31-.44 $38`224 32.38 9.37 33.35 40.55 34.35 1.77 Information Technology 61 32.38 139.37$ $33.35 $40.55 $34.35 1.77$ Technician $29.92 26,22 $30.67 $37..29 $34 44 38:22 Laboratory Ass ist 57 $27w12 $3-W $27-:88 $3 79 $28:SB $34-63 OCEA-Technical Services MOU July 1,20196 to June 30,20224-9 Page 26 8972311.1 OR040-030 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR TH E ENGINEERING UNIT July 1, 20196 through June 30, 20224-9 8972312.1 OR040-030 TABLE OF CONTENTS ARTICLE 1.-RECOGNITION.................................................................................................................................1 ARTICLE 2.-DURATION.......................................................................................................................................1 ARTICLE 3.-SUCCESSOR AGREEMENT...........................................................................................................1 ARTICLE4.-OCEA ACCESS................................................................................................................................1 ARTICLE 5.-OCEA RIGHTS.................................................................................................................................2 ARTICLE 6.-DISTRICT RIGHTS..........................................................................................................................2 ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT.....................................................................................2 ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT..........................................................................................2 ARTICLE9.-SAFETY............................................................................................................................................2 ARTICLE 10.-DISCIPLINE AND DISMISSAL......................................................................................................3 ARTICLE 11.-GRIEVANCE PROCEDURE...........................................................................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE.............................................................................................5 ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION......................................................................6 ARTICLE 14.-SEVERANCE PAY.........................................................................................................................7 ARTICLE 15.-DEFERRED COMPENSATION......................................................................................................7 ARTICLE16.-HOLIDAYS......................................................................................................................................7 ARTICLE 17.-HOURS OF WORK.......................................................................................................................8 ARTICLE 18.-CALL-BACK PAY..........................................................................................................................8 ARTICLE 19.-STANDBY PAY..............................................................................................................................8 ARTICLE20.--INSURANCE................................................................................................................................9 20.34 MEDICAL INSURANCE...............................................................................................................................9 20.45 LIFE INSURANCE......................................................................................................................................5 20.566, SHORT TERM DISABILITY..........................................................................................................................9 20.67- LONG TERM DISABILITY............................................................................................................................9 20.79 DENTAL INSURANCE...............................................................................................................................10 20.89 VISION INSURANCE................................................................................................................................10 20.9 RETIRING EMPLOYEES...........................................................................................................................10 20.10 HEALTH RETIREMENT ACCOUNT REOPENERRFT'R'NG FmMP'AV 10 ARTICLE 21.-REIMBURSEMENT ACCOUNT...................................................................................................10 21.2 GROUP INSURANCE PREMIUMS...............................................................................................................10 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT............................................................................................10 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT..............................................................................................10 ARTICLE 22.-OVERTIME...................................................................................................................................10 ARTICLE 23.-PROBATIONARY PERIOD..........................................................................................................11 ARTICLE 24.-PROMOTIONS..............................................................................................................................11 ARTICLE 25.-RETIREMENT...............................................................................................................................11 ARTICLE 26.-SHIFT DIFFERENTIAL.................................................................................................................12 ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY..............................................................................................12 27.1 VACATION LEAVE...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................13 27.3 JURY DUTY LEAVE.................................................................................................................................14 27.4 WITNESS LEAVE....................................................................................................................................14 27.5 MILITARY LEAVE....................................................................................................................................15 27.6 BEREAVEMENT LEAVE............................................................................................................................15 27.7 SUPPLEMENTAL LEAVE...........................................................................................................................15 ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY.......................................................................................16 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................16 28.4 PERMISSIBLE USES................................................................................................................................16 28.5 GENERAL LEAVE....................................................................................................................................18 28.6 RETURN TO WORK POLICY.....................................................................................................................18 28.7 COMPLIANCE WITH LAW.........................................................................................................................18 ARTICLE 29.-CLASSIFICATION STUDIES.......................................................................................................19 ARTICLE 30.-DRIVER'S LICENSE.....................................................................................................................20 ARTICLE 31.-LAYOFF PROCEDURE................................................................................................................20 ARTICLE 32.-LIGHT DUTY.................................................................................................................................20 ARTICLE 33.-MEDICAL EXAMINATION...........................................................................................................21 ARTICLE 34.-MILEAGE ALLOWANCE.............................................................................................................21 OCEA-Engineering MOU July 1,20194 to June 30,202246 Pagei 8972312.1 OR040-030 ARTICLE 35.-ACTING PAY................................................................................................................................21 ARTICLE36...........................................................................................................................................................21 ARTICLE 37.-PERSONNEL FILES....................................................................................................................21 ARTICLE 38.=BULLETIN BOARDS..................................................................................................................21 ARTICLE 39.-RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................21 ARTICLE 40.-USE OF DISTRICT FACILITIES..................................................................................................22 ARTICLE 41.-SCOPE OF BARGAINING...........................................................................................................22 ARTICLE 42.-IMPASSE PROCEDURES...........................................................................................................22 ARTICLE 43.-SEVERABILITY............................................................................................................................22 ARTICLE44.-UNIFORMS...................................................................................................................................23 ARTICLE 45.-SUBSTANCE ABUSE POLICY....................................................................................................23 ARTICLE 46.-DUES DEDUCTIONS...................................................................................................................23 ARTICLE47...........................................................................................................................................................23 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES.................................................................................23 ARTICLE49...........................................................................................................................................................23 ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY................................................................24 ARTICLE51.-RESIGNATION.............................................................................................................................24 ARTICLE52...........................................................................................................................................................24 ARTICLE 53.-LABOR MANAGEMENT COMMITTEE.........................................................................24 SIGNATUREPAGE...............................................................................................................................................25 EXHIBITA.............................................................................................................................................................26 OCEA—Engineering MOU July 1,20196 to June 30,20229 Page ii 8972312.1 OR040-030 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT In accordance with the provisions of California Government Code Sections 3500,et seq.,and Resolution No.75-127 of the Joint Board of Directors,the District's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association(OCEA)for the Engineering Unit.These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1.-RECOGNITION 1.1 This Agreement,effective July 1,20196,is entered into between the Orange County Sanitation District, referred to hereinafter as the"District,"and the Orange County Employees Association,referred to hereinafter as"OCEA." 1.2 The District recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications,as set forth in Exhibit"A"(attached hereto and incorporated by reference),as well as additional classes as may be added hereafter by the District. ARTICLE 2.-DURATION 2.1 This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30,202249.Any issue regarding the question of exclusive representation of a recognized employee organization shall be brought pursuant to the Employer-Employee Relations Resolution(EERR).Resolution No.OCSD 99-24.This Agreement shall AGt ARTICLE 3. -SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4. -OCEA ACCESS 4.1 An OCEA Representative shall have access to the District's facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources,or designee. 4.2 The OCEA shall provide the Director of Human Resources,or designee,with a list of Representatives who are authorized to request access under this article,and shall notify the Director of any changes in that list. 4.3 OCEA access shall not interfere with the District's operations,or with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated as confidential or secure. OCEA—Engineering MOU July 1,20196 to June 30,202249 Page 1 8972312.1 OR040-030 ARTICLE 5. -OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources,or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to the District by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither the District nor the OCEA shall interfere with,intimidate,restrain,coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6.-DISTRICT RIGHTS 6.1 District inherent rights,powers,functions,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits,necessity or organization of any service or activity provided by law,or administrative order;determine the mission of its constituent departments, commissions and boards;set standards of service,determine the procedures and standards of selection for employment and promotion;establish and implement performance standards;direct its employees; take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted;determine the content of job classifications;classify and reclassify positions;take all necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 District retains all authority and rights conferred on it by law,or other legal sources,except to the extent that such authority is explicitly waived by the express terms of this agreement.District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude OCEA from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race,color,religion,national origin,ancestry,sex,gender,gender identity,gender expression,sexual orientation,age,physical or mental disability,medical condition,genetic information, marital status,or military or veteran status,or any other lawfully protected class. To the extent required by law or by the District's rules or regulations,this provision of the Agreement shall be applied to all members of the unit without regard to any protected classification. ARTICLE 8.-SMOKE-FREE WORK ENVIRONMENT 8.1 The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families,smoking and the use of tobacco(cigarettes,cigars,e-cigarettes["vaping"]and related tobacco products and technologies)is not acceptable within District facilities,and may occur only in areas posted for smoking. ARTICLE 9.-SAFETY 9.1 It is the duty of the District to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner.It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to unsafe practices,equipment,and conditions,and to follow the safety regulations and requirements OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 2 8972312.1 OR040-030 of the District,and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. ARTICLE 10. -DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit:verbal reprimand,written reprimand,suspension without pay;reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay,a reduction in pay,a demotion to a classification with a lower pay grade,or dismissal.The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail,which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action;(3)a copy of the charges and materials upon which the action is based;and,(4)a statement of the employee's right to respond,either verbally or in writing to the person initially imposing the discipline or to a District management representative with authority to make an effective recommendation on the proposed action,the person to whom any response must be directed,and the fact that such response must be received within ten(10)business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action,the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response,the District shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described in the Notice of Intent;however,the District may reduce discipline without further notice.Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies&Procedures Manual. 10.7 Dismissal shall be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the influence of drugs or alcohol,theft or misappropriation of District property or funds,fighting on the job,insubordination,acts endangering people or property,or other serious misconduct.The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources,or designee, within ten(10)business days following the effective date of the disciplinary action(for suspensions,the effective date shall be the first business day following the final day of the suspension).The Director of Human Resources,or designee,shall schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of the District. The hearing officer will provide a written,advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final. 10.9 Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four(24)months subsequent to the date of issuance,provided that there OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 3 8972312.1 OR040-030 has been no recurrence of a similar incident during the period. If the Director of Human Resources,or designee,agrees to remove disciplinary action documentation from an employee's personnel file,such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure.Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reclassifications,"bumping"associated with layoffs,reasonable accommodation)shall not be considered discipline. ARTICLE 11. -GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement,except that,in accordance with Article 10 above,discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bring a grievance through this procedure.Grievances brought by two(2) or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the OCEA,be consolidated for the purposes of this procedure. 11.3 Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. 11.4 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure,unless specifically agreed otherwise by the OCEA and the employee. The District shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.4.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event. The supervisor,or designee,shall attempt to resolve the issues surrounding the complaint,and respond in writing to the employee within ten(10)days. 11.4.2 Step 2. If the grievance is not settled at Step 1,it may be submitted in writing to the employee's Division Manager,or designee.This request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1.A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The written grievance must: a) Identify the specific management act to be reviewed; b) Specify how the employee was adversely affected; c) List the specific provisions of the MOU that were allegedly violated and state how they were violated; d) Specify the remedy requested;and e) Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 4 8972312.1 OR040-030 11.4.2.1 The Division Manager,or designee,shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.4.3 Step 3. If a grievance is not settled under Step 1 or 2,it may be presented to the employee's Department Director,or designee,for review and written response.The request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1 or 2,and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The employee's Department Director,or designee,shall respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.4 Step 4. If the grievance cannot be resolved under Step 3,it may be presented to an Assistant General Manager,or designee,within five(5)days from the date the Step 3 finding was issued. The Assistant General Manager,or designee,shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.4.5 Step 5.Appeal to the General Manager,or designee,is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4,it may be presented to the General Manager,or designee,within five(5)days from the date the Step 4 finding was issued.The General Manager, or designee,shall respond in writing to the employee within ten(10)days after the date of the grievance is received. 11.5 General Provisions:An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA,the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility. Absence from work shall be approved only if it does not cause disruption to District operations.However,if the time requested cannot be provided,an alternate time shall be arranged. 11.5.1 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step.If a grievance is not presented or appealed within the time limits,it shall be considered resolved on the basis of the preceding response.The Director of Human Resources,or designee,may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.5.2 Resolution may be agreed upon at any stage of the grievance process. However,the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12.-PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of District managers through the Problem Solving Procedure.This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure.Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision,and provide a written response within five days from the date they were notified of the problem. 12.3 If the problem is not resolved to the employee's satisfaction,the employee may file a written statement concerning the problem with the Director of Human Resources,or designee,within ten(10)days of receipt of the supervisor's decision. Upon request of either party,a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten(10)days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Director of Human Resources,or designee,is final. OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 5 8972312.1 OR040-030 ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay—Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: 13.3.1.1 Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2 Ineligible-Employees who are placed on a Performance Improvement Plan(PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program:The performance management program includes three(3)rating categories(exceeds,proficient,needs improvement)for performance appraisals. 13.3.2 Development Pay—Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: • Education—Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive$20.76 per pay period for an associate degree and$41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$41.53 per pay period. • Certification/License—Eligible employees who obtain or who have obtained a District approved certification or license will receive$15247.62 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses.The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $45722286 per pay period. 13.3.2.1 The overall maximum Development Pay for education,certification and/or licenses is fixed at$87.2564b9 per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 20196,employees under this Agreement will receive salary range adjustments at a flat rate of 3_02-.5%. OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 6 8972312.1 OR040-030 13.4.2 Effective the first pay period in July 202047,employees under this Agreement will receive salary range adjustments at a flat rate of 3_05%. 13.4.3 Effective the first pay period in July 202149,employees under this Agreement will receive salary range adjustments at a flat rate of 3_02.5%. ARTICLE 14.-SEVERANCE PAY 14.1 Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District,the employee shall be notified in writing two(2)weeks prior to the effective separation date.In the event the District does not give such notification,the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time,regular employees shall be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2 Employees in limited term or part-time positions,probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. ARTICLE 15.-DEFERRED COMPENSATION 15.1 Employees may participate in the District's approved deferred compensation plan subject to IRS requirements,and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16.-HOLIDAYS 16.1 The days listed below are observed by the District as holidays.Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday,the employee will be paid at the employee's regular rate of pay for the holiday,and will also receive overtime pay at the rate of one and one half(1.5)times their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay pg5 if requested by December 31 of the prior year on the Holiday Comp Cashout Form.When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). HOLIDAY New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas OCEA—Engineering MOU July 1,20196 to June 30,20 Page 7 8972312.1 OR040-030 Christmas Day Floating Holiday* 16.2 Employees may elect one(1)day during each year as a"Floating Holiday".New employees shall be granted a"Floating Holiday"on a pro rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter(January-March) 100% 2nd Quarter(April-June) 75% 31d Quarter(July-September) 50% 41h Quarter(October-December) 0% 16.3 Employees must use the"Floating Holiday"within the calendar year it is granted.Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17.-HOURS OF WORK 17.1 For record keeping and accounting purposes,the"workweek"for full-time employees is 40 hours per 168- hour period,to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek(9/80 schedule),five 8-hour days each workweek(10/80),four 10-hour days each workweek(8/80),or three 12-hour days and one 4- hour day each workweek(7/80). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift,and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed,he or she shall receive two hours pay at the overtime rate. 17.3 The District may,at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee. ARTICLE 18. -CALL-BACK PAY 18.1 When an employee is called back to work by District management without prior notice,and the employee has completed his or her normal work shift and left the work station,or when prior notice is given but the work begins on the same day at least three hours after completion of the regular shift,the employee shall receive a minimum of three hours of call back pay. The three hours minimum,whether or not actually worked,shall be paid at the rate of one and one half times the regular hourly rate.Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. ARTICLE 19.-STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work.Standby assignments shall first be made on a voluntary basis.A volunteer standby list shall be established by classification and job location. Standby assignments shall be made from the list of employees who are competent and experienced,in alphabetical order,on a rotating basis.In the event that no one volunteers,the District shall assign standby by job classification and work location from employees who are competent and experienced on a OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 8 8972312.1 OR040-030 rotational basis.An employee placed on standby shall be compensated at the rate of three-five hundred forty five(34500)dollars per week,and shall receive Call Back pay when they are actually called to work. ARTICLE 20.—INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date.An open enrollment period shall be held annually. 20.3 Medical Insurance 20.3.1 The District will provide medical health insurance coverage through a Health Maintenance Organization(HMO)medical insurance plan and a Preferred Provider Organization(PPO)medical insurance plan. 20.3.2 Regular,full-time employees: 20.3.2.1 The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee+1 dependent and full family premiums for the HMO and PPO medical plans.Any change in insurance rates shall be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District's sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.3.3 The District may reopen negotiations at anytime during the term of the MOU to address the impact of the Affordable Care Act(ACA),provided that no change may be made by the District unless such change is either(1)mandated by the ACA,or(2)mutually agreed upon by the parties. 20.4 Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. 20.5 Short Term Disability The District shall provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. 20.6 Long Term Disability 20.6.1 The District shall provide a non-work related,long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability,not to exceed $5,000 per month,up to age 65,following a 90-day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.6.2 For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65.For participants age 65 and older,the maximum period of payment is specified.The specified periods and additional information about coverage is included in the District's long-term disability plan contract accession on the intranet. 20.6.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay.Employees may not receive short-term and long-term disability benefits at the same time.An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 9 8972312.1 OR040-030 20.7 Dental Insurance The District will contribute 80%of employee only and 80%of full family premiums for dental insurance. 20.8 Vision Insurance The District shall provide a vision insurance plan for regular,full-time employees and eligible dependents. 20.9 Retiring Employees 20.9.1 The District shall pay,for employees hired prior to July 1,1988,two and one-half(2.5)months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.9.2 In the event the District adds additional optional insurance plans,the District's share of the premium shall be the same as for existing plans as set forth above.In the event the District changes underwriters for existing insurance plans,the District's share of the premium shall be the same as for existing insurance plans as set forth above. 20.9.3 The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every ull ear of ..-- Commented[BSI]:Saliem-We did not discuss this at the continuous service up to a maximum of 25 years or$250 per month.Employees hired on or table,but we have updated this language to align with after August 1,2011 shall not be eligible for the retiree medical health premium offset. Ocsp's current practice(house keeping).Are you OK with this update? 20.10 Health Retirement Account(HRA)Reopener: The District and the Group agree to reopen this Agreement to discuss HRA plan design and funding mechanism options,including District and/or employee funding,understanding the District is not making any commitment to District funding. ARTICLE 21.-REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts,employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21.4 Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. ARTICLE 22.-OVERTIME 22.1 Employees shall be notified as soon as practicable after the District decides upon the need for overtime or additional work.The District may require the performance of overtime. In the event no qualified employee wishes to work overtime,District's management may select employees with the ability to perform the work OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 10 8972312.1 OR040-030 by inverse seniority.District managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. 22.2 For the purposes of overtime calculation,all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty(40)hours in a seven(7)day workweek is reached. ARTICLE 23.-PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following six months of employment without a break in service. Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position,and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his or her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of six months. The "probationary period"shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. ARTICLE 24. -PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay.The District will determine whether a vacant position shall be filled as an open or promotional opportunity or recruitment.Whenever the District intends to fill a position by promotion,the District shall post the opportunity for a minimum often(10)business days. Employees must apply during the period of posting. Notices shall be posted on the District's intranet. 24.2 A promoted employee shall serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective date of the promotion.At any time during the promotional probationary period,an employee may be returned to his or her previous position.The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety(90)days.If an employee is promoted during his or her initial probationary period,the period shall be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.3 Promoted employees will receive the equivalent of a step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25.-RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System(OCERS), wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1 Employees hired before September 21,1979:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12) months average earnings,past and future service. pFegFam. OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 11 8972312.1 OR040-030 25.1.2 Employees hired on or after September 21,1979 and before August 1,2011:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1,2011 and before January 1,2013:The District will contract with OCERS to provide the 1.667%@ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.3.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1,2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA)based on the highest consecutive thirty-six(36) months average earnings,past and future service. 25.1.4.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26.-SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50%or more of their hours between 6:00 p.m.and 6:00 a.m.and who actually work that shift shall receive a shift differential of$2.50 per hour. ARTICLE 27. -LEAVE-OF-ABSENCE WITH PAY 27.1 Vacation Leave 27.1.1 Except as otherwise provided,regular full-time employees accrue vacation leave,beginning with the first day of employment,in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 1 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in District Policy. OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 12 8972312.1 OR040-030 27.1.3 Vacation leave begins after an employee has GOrnpleted twenty sox(26)weeks Of continuous GrAditPd I.With 40 hnurs.A.#Pr that tome,he eF she will aGGF1_1e vaGation hours Annsogtent w0th th abeve-G#a#—Vacation leave may only be utilized in increments of one- ua arterhalf hour or more. Vacation leave is accrued for all paid hours,including hours actually worked and hours in a paid- leave payroll status. 27.1.4 When unpaid absences occur,vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked,and is applicable to all types of leave,whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours,it must be used prior to said December date,all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition.-Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee.It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness,injury,or pregnancy,or to attend to the illness or injury of a family member as hereinafter defined;or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). Temporary employees shall receive sick leave benefits as required by State law. 27.2.2 Method-Sick Leave Accrual. Full-time employees hired prior to November 27,1981,accrue paid sick leave at the rate of three point five(3.5)hours for each biweekly pay period of continuous service(ninety-one(91)hours per year). Full-time employees hired on or after November 27, 1981,accrue paid sick leave at the rate of three(3.0)hours for each biweekly pay period of continuous service(seventy-eight(78)hours per year),beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable District Policy. 27.2.4 When unpaid absences occur,sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked,and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Payoff-Employees may elect annually to be paid for any unused sick leave hours accrued through the last pay period ending inef October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule.Employees who retire or decease with twenty(20)years or more of service shall be paid at the one hundred percent (100%)rate for all accrued and unused sick leave.Employees who retire or decease with less OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 13 8972312.1 OR040-030 than twenty(20)years of service will be paid at the seventy-five percent(75%)rate for all accrued and unused sick leave. 27.2.7 Permissible Uses-Sick leave may be applied only to: A. Absence due to illness,injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. C. Absence for the care of the employee's father,father-in-law,mother,mother-in-law,brother, sister,husband,wife,domestic partner,child,child of domestic partner,grandparent, grandchild,legal guardian,or any family member with whom the employee resides. D. Absence due to a job-related injury. E. Absence related to an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). 27.2.8 General Provisions-To qualify for sick leave pay,the employee must notify the District at or in advance of the time the employee is scheduled to report for duty.Minimum charge to the employee's sick leave account shall be one- uarter hour and thorpaftpr an Anp half hn- increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege.If notified in advance,the employee may be required,at any time,to furnish a certificate issued by a licensed physician or nurse,or other satisfactory evidence of illness; however,for absences of ten consecutive working days or more,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to Human Resources. Upon return to work,a written doctor's release must be submitted to Human Resources. For absences of one or more working days in an unpaid status,a request for leave and a medical statement,on prescribed forms,stating expected date of return must be submitted to Human Resources. If the need for leave is due to the employee's serious health condition,as defined in the Family and Medical Leave Act("FMtA")or the California Family Rights Act("CFRA"),the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time,including probationary,employee who is called for jury duty shall,upon request on prescribed forms,be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2 Prior to jury duty service,each employee must complete a time off request through the District's timesheet system and provide a copy of the summons to his or her supervisor.To be entitled to receive regular pay for such jury leave,the employee must report for work at the District for time not actually retained on jury unless there is less than''/z of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.4 Witness Leave 27.4.1 Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his or her presence as a witness,except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness,shall,upon approval of an online time off request,be entitled the time necessary to comply with such subpoena,provided any fees received for such service,exclusive of mileage,are submitted to the District for deposit in the General Fund of the District. OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 14 8972312.1 OR040-030 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service,exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California,Sections 395-395.5 shall govern military leave. In general,current law provides that an employee having one(1)year or more service with a public entity is entitled to military leave with pay not exceeding thirty(30)days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay,not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system,any full-time employee,whether probationary or regular, shall receive a maximum of thirty-six(36)hours of paid time for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member. Immediate family member is defined as the employee's father, step-father,father-in-law,mother,step-mother,mother-in-law,brother,step-brother,sister,step- sister,husband,wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner,grandchild,grandparent,foster parent,foster child,legal guardian,or any family member with whom the employee resides. With reasonable cause,employees may be required to furnish evidence satisfactory to the District of the family member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six(6)months to the Director of Human Resources or designee,who has the discretion to grant or deny such requests. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of Service 5-9 10-14 15-19 20-24 25+ Supplemental Leave Hours 5 10 15 20 25 27.7.3 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.3.1 Supplemental Leave may be used in one-quarter(0.25)hour increments. 27.7.3.2 Any unused Supplemental Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 27.7.3.4 Any unused Supplemental Leave,within the fiscal year granted,is not subject to cash OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 15 8972312.1 OR040-030 out or eligible for any mandatory payout. 27.7.3.5 Employees who cease to be part of the bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.3.6 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Hire/Transfer Date Percent July—September 100% October—December 75% January—March 50% April—June 25% ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of the District to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 28.2 Using the prescribed forms,approved by District management,any full-time,including probationary,or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250) hours of service,may be granted an FMLA or CFRA leave-of-absence without pay,not to exceed twelve (12)weeks in a rolling twelve(12)month calendar period.A"rolling"twelve(12)month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five (5)consecutive working days,or for absences of ten(10)working days or more when using paid sick leave accruals. 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition shall be required to use all accruals,before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one(1)day. 28.3.2 Paid time off accruals may be used for the care of the employee's father,step-father,father-in-law, mother,step-mother,mother-in-law,brother,step-brother,sister,step-sister,husband,wife, domestic partner,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent,legal guardian,or any family member with whom the employee resides. 28.4 Permissible Uses 28.4.1 FMLA Leave.FMLA leave may be used for: 28.4.1.1 The birth of a child or to care for a newborn of an employee; 28.4.1.2 The placement of a child with an employee in connection with the adoption or foster care of a child; OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 16 8972312.1 OR040-030 28.4.1.3 The care for the employee's father,step-father,father-in-law,mother,step-mother, mother-in-law,brother,step-brother,sister,step-sister,husband,wife,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner, grandchild,grandparent,legal guardian,or any family member with whom the employee resides who has a serious health condition,as defined in the Act; 28.4.1.4 The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position,including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee's family member or"next of kin"service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to twenty-six(26) weeks of unpaid leave during a single twelve(12)month period. 28.4.2 CFRA Leave.CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave,including the care of a domestic partner or child of a domestic partner,and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy,2)leave due to a qualifying exigency,or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28.4.3 General Provisions:Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests thirty(30)days advance notice. 28.4.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with Department of Labor(DOL)regulations. 28.4.5 Medical and Dental Premiums During FMLA and CFRA Leave,the District shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment,in full,within sixty(60)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA or CFRA Leave,the employee shall be reinstated to the same or a comparable position,unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,layoff),in which case the District's obligation to continue health and dental or other benefits shall cease. 28.4.7 District Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave.Married employees shall be limited to a combined total of twelve(12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. OCEA—Engineering MOU July 1,20196 to June 30,202249 Page 17 8972312.1 OR040-030 28.4.7.2 CFRA Leave.Married employees and employees in domestic partnerships will be limited to a combined total of twelve(12)weeks CFRA leave in a rollin twelve(12) month calendar period for the care of a parent eF newly born or placedUild. _._- Commented[LK2]:Saliem,we missed this clean-up 28.5 General Leave language in our discussions. This is a benefit to OCEA members;they are only limited to a combined 12 weeks of 28.5.1 Employees who have exhausted all aid time off accruals may request to be ranted a general leave related to bonding,NOT the care of a parent. Please P Y q 9 9 confirm the group is OK with this change. leave-of-absence by District management to attend to personal matters or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment,in full,within sixty(60)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work, placement in an alternative position,if available,shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay;however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an alternative position,or the employee is not willing to return to work,the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter,the employee shall be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service If an employee is dismissed per Section 28.6.3,and then is rehired to a position within the District within one(1)year,the District shall bridge the employee's service date. Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 28.6.5 Failure to Return to Work If,upon the expiration of FMLA or CFRA Leave,or any District approved extension thereof including General Leave,an employee fails to return to work and no additional leave has been authorized,the employee shall be considered to have automatically resigned from his or her position.In such cases,the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-of-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions,as written or applied,the provisions of law shall govern. OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 18 8972312.1 OR040-030 ARTICLE 29. -CLASSIFICATION STUDIES 29.1 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy,and forward it to the Director of Human Resources,or designee,for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process;therefore,classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. District's management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.2 Y-Rating 29.2.1 All classification study findings regarding existing classifications are subject to approval by the General Manager;findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study,unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event,the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.2.2 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged(Y-rated)in accordance with the following table: Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years 29.2.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's staffing requirements,organizational structure or"bumping"associated with layoffs. Y- rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. 29.2.4 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary,or until the term of the Y-rate expires in accordance with the table above.If the Y-rate expires before the employee's salary falls within the range of the new classification,the employee shall be placed at the top of the range. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.3 Z-Ratina 29.3.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of the District's comprehensive Classification Study results implemented effective July 12, 2002 will have their salary remain unchanged(z-rated)until such time that the range maximum of their salary range exceeds or equals their current salary. 29.3.2 If a position is allocated to a higher paid classification,and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 19 8972312.1 OR040-030 ARTICLE 30.-DRIVER'S LICENSE 30.1 Employees who are required by the District to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies the District in a timely fashion,an attempt shall be made to place the employee in an equal or lower level position for which he or she is qualified. Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A&B licenses that are specifically required by the District. ARTICLE 31.-LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant,budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions in instances involving job restructuring,reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if the District finds it necessary to layoff personnel who were hired after January 1,2000 and for any layoffs which occur after November 1,2002. 31.3 If,in the sole discretion of District management,personnel reductions are necessary,layoff order and recall lists shall be developed based upon job classification,priority of function,job performance,individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing,whenever possible. 31.4 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged,except that it may not exceed the maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencing personnel reductions,and shall be maintained for a period of two years from the date of layoff.Individuals shall be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled.When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five days,or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. ARTICLE 32. -LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions.An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 20 8972312.1 OR040-030 ARTICLE 33. -MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on District time and at District expense. An employee may submit an independent medical opinion regarding the individual's condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34.-MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35.-ACTING PAY 35.1 Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty(80)consecutive hours shall be eligible for a one step salary increase,or the first step of the range for the higher level classification,whichever is greater.The higher rate of pay begins with the hour eighty-one(81),and continues until the assignment ends or the six(6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources,or designee. The eighty(80)hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37.-PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department,by appointment.Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Director of Human Resources,or designee. It is the responsibility of each employee to keep the personal information in his or her file current,including home address,telephone number and person to contact in an emergency. ARTICLE 38.-BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2,which are designated for use by employee groups to post notices to District employees,provided that:(a)no controversial matter which is critical of or derogatory to the District,its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the OCEA shall remove its notices after a reasonable length of time;and(d)only a reasonable number of notices shall be posted. ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three(3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 21 8972312.1 OR040-030 39.2 The OCEA shall provide the Director of Human Resources,or designee,with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of the District permits the time away from assigned work. ARTICLE 40. -USE OF DISTRICT FACILITIES 40.1 District facilities may be used by the OCEA with prior notice to the Director of Human Resources,or designee,for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41.-SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge that during the negotiations,which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore,the District and the OCEA,for the term of this Agreement,except as otherwise provided herein,each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42.-IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an impasse exists in the meet and confer process,the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation:If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service,all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation,nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding:If the parties fail to resolve the dispute through mediation,the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Board Actions:If the parties fail to resolve the impasse,the dispute shall be sent to the District's Board of Directors for resolution. Each party shall submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43.-SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement,in the event that any article,section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation,or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and OCEA shall meet and confer on the affected article,section or subsection. In such event,all other articles,sections or subsections of this Agreement not affected shall continue in full force and effect. OCEA—Engineering MOU July 1,20196 to June 30,20 Page 22 8972312.1 OR040-030 ARTICLE 44. -UNIFORMS 44.1 The District shall provide and maintain ten(10)uniform pants and shirts,which may include the name of the employee and District's seal,at no cost to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion,as determined by District management,may be worn when attending business meetings. Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. ARTICLE 45.-SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members.The District may adopt or implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation(DOT)Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver's license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3 District's Substance Abuse Policy 45.3.1 Any employee maybe subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46.-DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues,initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. 46.2 The District shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition,the District shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48. -PEACEFUL RESOLUTION OF DISPUTES 48.1 During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it shall not lockout employees in this bargaining unit,and OCEA agrees that it shall neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in part from the full,faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) OCEA—Engineering MOU July 1,20196 to June 30,20224-9 Page 23 8972312.1 OR040-030 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51.-RESIGNATION 51.1 Voluntary written termination of employment with the District is automatically deemed irrevocable after seventy-two(72)hours from the receipt of the resignation,except by approval of the Director of Human Resources,or designee. The District may accept in writing any employee's verbal or written resignation at any time and deem such resignation irrevocable. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53. -LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association(OCEA)and the Orange County Sanitation District(OCSD)hereby agree to meet within two(2)months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD.Absent mutual agreement regarding the structure and process of a Labor Management Committee,the parties will defer discussions to the time when a successor MOU is raised. OCEA—Engineering MOU July 1,20196 to June 30,20 Page 24 8972312.1 OR040-030 SIGNATURE PAGE 20196—2022T9 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT Executed: OCEA ENGINEERING UNIT ORANGE COUNTY SANITATION DISTRICT B r_ tmerre,Saliem Aregave,Labor Relations Laura Drottz Kalty,LeadOhief Negotiator Representative Robert(Mickey)Whitney,Senior Construction Celia Chandler,Director of Human Resources Inspector XXXDana Andrewsdan Orel,Admon' tFatove Laura Maravilla,Human Resources&Risk ss*sta'�^'Construction Inspector Manager R s u s ARaIyGlc Andrew Nau,Human Resources Supervisor Laura MaFayaiia Human Roso-mes 2 Risk SupervisorManag Janine AgWarThys DeVries,RFInsiPal SenierRrinisipalPrincipal Human Resources Analyst Laupie a Stephanie Barron,Senior Human Resources Analyst OCEA—Engineering MOU July 1,20196 to June 30,202219 Page 25 8972312.1 OR040-030 Exhibit A ENGINEERING UNIT Effective Effective Effective Pay 85-Jul-1619 73-Jul4720 62-Jul-1821 Classification Grade MIN MAX MIN MAX F-MIN I MAX Senior Construction Inspector 78 $$4&-&349'2 $65.23 $46-6750.7 $ $4T4452.2 $534562.4 8 58.89 6 56:7360.66 8 8 Engineering Associate 76 $433346_89 $52- 57.0 $44-4148.3 $54- 58.7 $453249.7 $55- 60.4 2 0 3 5 9 Construction Inspector 74 $41,2744_66 $50,4554.2 $42.3046.0 $51-4055.9 $43,3647.3 $52-:W 7.5 7 0 0 8 8 Engineering Assistant II 70 $37:3840.46 $45.4449.1 $38.°b241.6 $46,5950.6 $39- 2.9 $47.7452.1 7 7 5 2 7 Engineering Assistant 1 66 $33-8836.67 $41-- 4.5 $34a337.7 $42.2045.9 $3&4938.9 $432547.2 6 7 0 0 a OCEA—Engineering MOU July 1,20196 to June 30,20 Page 26 8972312.1 OR040-030 STEERING COMMITTEE Meeting Date To Bd. of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: Laura Kalty, Chief Negotiator SUBJECT: SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS — LOCAL 501 CHIEF NEGOTIATOR'S RECOMMENDATION A. Adopt Resolution No. OCSD 19-10, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Local 501, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022"; and B. Direct staff to finalize and sign the Memoranda of Understanding (MOU) between Orange County Sanitation District and the Local 501 bargaining unit. BACKGROUND The MOU between the Orange County Sanitation District (Sanitation District) and the International Union of Operating Engineers Local 501 (Local 501) bargaining unit that became effective on July 1, 2016 expired on June 30, 2019. Local 501 submitted its initial proposal for a successor MOU on February 27, 2019. Local 501 and the Sanitation District have met and conferred in good faith twelve (12) times since receiving the initial proposal. As of the Board meeting on June 26, 2019, all items proposed, except salary and wages, had either reached tentative agreement or had been withdrawn. On June 26, 2019, the Board of Directors authorized the Chief Negotiator to make a counter proposal to Local 501 including a three-year contract with a 3.0% salary increase and corresponding range adjustments due in the first pay period in July for each year of the contract, with the first increase to commence on July 5, 2019. The Sanitation District delivered this counter proposal to Local 501 on July 15, 2019. Local 501's membership ratified the proposal by majority vote on July 24, 2019. RELEVANT STANDARDS • Ensure the public's money is wisely spent. • Offer competitive compensation and benefits • Cultivate a highly qualified, well trained, and diverse workforce • Negotiate fair and equitable labor agreements • Maintain positive employer-employee relations • Provide professional growth and development Page 1 of 4 PROBLEM The MOU between the Sanitation District and the Local 501 bargaining unit that became effective on July 1, 2016 expired on June 30, 2019. PROPOSED SOLUTION Adopt Resolution No. OCSD 19-10, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Local 501, for Fiscal Years 2019/2020, 2020/2021 & 2021/2022". Based on Board direction, the Sanitation District issued a counter proposal to Local 501 on July 15, 2019, including three-year contracts with a 3.0% salary increase for each year of the contract. Local 501 distributed the proposal to its membership for voting and Local 501's membership ratified the proposals by majority vote July 24, 2019. RAMIFICATIONS OF NOT TAKING ACTION • Labor instability • Possible impacts to morale • Impasse PRIOR COMMITTEE/BOARD ACTIONS In December 2018, an Ad Hoc Subcommittee of the Steering Committee selected Laura Kalty from Liebert Cassidy Whitmore to serve as the Sanitation District's Chief Negotiator. In preparation for and during the meet and confer process, the Chief Negotiator received direction for labor negotiations with Local 501 from the Steering Committee and the Board of Directors. The Local 501 meet and confer process was agendized for discussion in Closed Session at the following Committee/Board meetings: • February 27, 2019 - Steering Committee and Board Meeting • March 18, 2019 — Special Steering Committee Meeting • March 27, 2019 - Steering Committee and Board Meeting • April 24, 2019 - Steering Committee and Board Meeting • May 22, 2019 - Steering Committee and Board Meeting • June 26, 2019 - Steering Committee and Board Meeting • July 24, 2019 - Steering Committee and Board Meeting Page 2 of 4 ADDITIONAL INFORMATION Local 501 is the recognized employee organization certified to provide exclusive representation over wages, hours of work, and other terms and conditions of employment for the Sanitation District's 200 non-exempt Operations and Maintenance employees. The MOU between the Sanitation District and Local 501 expired on June 30, 2019. Based on Board direction, the Sanitation District issued a counter proposal to Local 501 on July 15, 2019, including three-year contracts with a 3.0% salary increase for each year of the contract. Local 501 distributed the proposal to their membership for voting and Local 501's membership ratified the proposals by majority vote on July 24, 2019. A full redlined version of the Local 501 MOU is attached for review. A summary of the key changes to the MOU are as follows: 1. Article 1, Recognition: Term of the agreement begins July 1, 2019. 2. Article 2, Duration: Agreement terminates on June 30, 2022. 3. Article 13, Salary Adjustments and Compensation: Salary: Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019; Year 2 — 3.0% Salary Increase, effective the first pay period of July 2020; Year 3 —3.0% Salary Increase, effective the first pay period of July 2021. Development Pay: Associate degree - $25.00 per pay period; Undergraduate degree - $50.00 per pay period; Certification/License - $15.24 per pay period per certificate/license with a maximum of three (3). 4. Article 16, Holidays: language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31Sf of prior year. 5. Article 17, Hours of Work: Employees' cleanup period designated as last fifteen (15) minutes of shift. Power Plant Operators grouped under Operations for Hours of Work. Reopener to discuss Power Plant Operator job family and staffing of Central Generation. 6. Article 19, Standby Pay: Standby Pay increased to five hundred (500) dollars per week. Side Letter language incorporated regarding standby requirements for Collections System staff. 7. Article 20, Insurance: Reopener to discuss establishment of Health Retirement Account (HRA) for all employees. 8. Article 27, Leave-of-Absence With Pay: Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. 9. Article 29, Classification Studies: Reopener to discuss Mechanic series pay grade. 10.Article 44, Uniforms: Boot allowance increased from $170 to $200 annually. 11.Article 46, Dues Deductions: Language cleanup to align with current law. 12.Article 47, Agency Shop: Language cleanup to align with current law; article title changed to "Union Dues". Page 3 of 4 13.Article 49, Shift Changes: Shift bidding process updated to allow employees to bid on any shift including their current shift. Employees will be verbally notified of shift location before accepting shift bid; OCSD may inform employee that their work location will not be changed. 14.Article 51, Resignation: The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. 15. Article 52, Operator Certification: The District will reimburse Operations and Maintenance employees for required certifications upon receiving a passing score. Listed below are articles with proposed housekeeping changes in the tentative agreement by article number: Article 16 — Holidays Article 25 — Retirement Article 27 — Leave-of-Absence With Pay Article 28 — Leave-of-Absence Without Pay FINANCIAL CONSIDERATIONS The total cost is $4,309,281 over the term of the agreement. Sufficient funds are incorporated in the Sanitation District's Five-Year Cashflow to support the adjustments required by this Memorandum of Understanding (MOU). ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 19-10 • Local 501 MOU (redlined version) Page 4 of 4 RESOLUTION NO. OCSD 19-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 501, FOR FISCAL YEARS 2019/2020, 2020/2021 & 2021/2022 WHEREAS, on October 26, 2016, the Board of Directors ("Directors") of the Orange County Sanitation District (the "District") authorized the General Manager to sign the Memoranda of Understanding with the International Union of Operating Engineers Local 501 (referred hereinafter as "Local 501"), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2016 through June 30, 2019 ("2016 MOU"). WHEREAS, prior to the expiration of the 2016 MOU on June 30, 2019, Local 501 requested to meet and confer regarding a successor MOU. WHEREAS, pursuant to Government Code Section 3500, et seq., representatives of LOCAL 501 have met and conferred with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, through negotiations the parties agreed that any salary changes would take effect retroactively to July 5, 2019, the first pay period in the current fiscal year; and WHEREAS, the parties have modified the 2019 MOU between the District and Local 501 to reflect the parties' understanding regarding certain terms and conditions, which include: • Duration of the MOU has been modified and will be for a 3-year term commencing July 1, 2019, and terminating June 30, 2022, as reflected in the Cover Page and Articles 1 and 2 of the MOU. • Salary Adjustments and Compensation has been modified as set forth below and as reflected in Article 13 of the MOU: o Year 1 — 3.0% Salary Increase, retroactive to the first pay period of July 2019. o Year 2 — 3.0% Salary Increase, effective the first pay period of July 2020. o Year 3 — 3.0% Salary Increase, effective the first pay period of July 2021. o Development Pay: ■ Associate Degree: $25.00 per pay period ■ Undergraduate Degree: $50.00 per pay period ■ Certification/License: $15.24 per pay period per certification/license with a maximum of three (3). • Holidays has been modified as set forth below and as reflected in Article 16 of the MOU: OCSD 19-10-1 o Language cleanup to reflect that employee election to receive Holiday Compensatory Time Off is due by December 31 st of prior year; housekeeping changes. • Hours of Work has been modified as set forth below and as reflected in Article 17 of the MOU: o Employees' cleanup period designated as last fifteen (15) minutes of shift. Language cleanup to reflect that Power Plant Operators are grouped under Operations for Hours of Work. o Reopener to discuss Power Plant Operator job family and staffing of Central Generation. • Standby Pay has been modified as set forth below and as reflected in Article 19 of the MOU: o Standby Pay increased to five hundred (500) dollars per week. o Side Letter language incorporated regarding standby requirements for Collections System staff. • Insurance has been modified as set forth below and as reflected in Article 20 of the MOU: o Reopener to discuss establishment of Health Retirement Account (HRA) for all employees. • Retirement has been modified as set forth below and as reflected in Article 25 of the MOU: o Housekeeping changes to remove outdated language. • Leave-of-Absence With Pay has been modified as set forth below and as reflected in Article 27 of the MOU: o Bereavement leave shall be used within six (6) months of death of immediate family member; requests for exceptions may be submitted to Director of Human Resources for approval. Employee may be required to furnish evidence of family member's death and/or of familial relationship. o Housekeeping changes. • Leave-of-Absence Without Pay has been modified as set forth below and as reflected in Article 28 of the MOU: o Housekeeping changes. • Classification Studies has been modified as set forth below and as reflected in Article 29 of the MOU: o Reopener to discuss Mechanic series pay grade. • Uniforms has been modified as set forth below and as reflected in Article 44 of the MOU: o Boot allowance increased from $170 to $200 annually. OCSD 19-10-2 • Dues Deductions has been modified as set forth below and as reflected in Article 46 of the MOU: o Language cleanup to align with current law. • Agency has been modified as set forth below and as reflected in Article 47 of the MOU: o Language cleanup to align with current law; article title changed to "Union Dues". • Shift Changes has been modified as set forth below and as reflected in Article 49 of the MOU: o Shift bidding process updated to allow employees to bid on any shift including their current shift. Employees will be verbally notified of shift location before accepting shift bid; District may inform employee that their work location will not be changed. • Resignation has been modified as set forth below and as reflected in Article 51 of the MOU: o The District may accept any verbal or written resignation at any time and deem such resignation irrevocable. Written resignations automatically deemed irrevocable after 72 hours, except by approval of HR. • Operator Certification has been modified as set forth below and as reflected in Article 52 of the MOU: o The District will reimburse Operations and Maintenance employees for required certifications upon receiving a passing score. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between the District and Local 501 for the contract period of July 1, 2019 through June 30, 2022 as outlined herein are hereby approved. Section 2. The General Manager is authorized to sign the Memoranda of Understanding with Local 501 for the period of July 1, 2019 through June 30, 2022, in a form approved by General Counsel. OCSD 19-10-3 PASSED AND ADOPTED at a regular meeting of the Board of Directors held August 28, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-10-4 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-10 was passed and adopted at a regular meeting of said Board on the 28th day of August 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 28th day of August 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-10-5 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE UNIT July 1, 20196 through June 30, 202249 8971551.1 OR040-032 TABLE OF CONTENTS ARTICLE1. RECOGNITION.............................................................................................................................3 ARTICLE2. DURATION...................................................................................................................................3 ARTICLE 3. SUCCESSOR AGREEMENT.......................................................................................................3 ARTICLE 4. LOCAL 501 ACCESS...................................................................................................................3 ARTICLE S. LOCAL 501 RIGHTS....................................................................................................................4 ARTICLE 6. DISTRICT RIGHTS.......................................................................................................................4 ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT.................................................................................4 ARTICLE 8. SMOKE-FREE WORK ENVIRONMENT......................................................................................5 ARTICLE9. SAFETY........................................................................................................................................5 ARTICLE 10. DISCIPLINE AND DISMISSAL....................................................................................................5 ARTICLE 11. GRIEVANCE PROCEDURE.........................................................................................................6 ARTICLE 12. PROBLEM SOLVING PROCEDURE...........................................................................................8 ARTICLE 13. SALARY ADJUSTMENTS AND COMPENSATION....................................................................8 ARTICLE 14. SEVERENCE PAY..................................................................................................................1010 ARTICLE 15. DEFERRED COMPENSATION..................................................................................................10 ARTICLE 16. HOLIDAYS..................................................................................................................................10 ARTICLE 17. HOURS OF WORK.....................................................................................................................12 ARTICLE 18. CALL-BACK PAY.......................................................................................................................13 ARTICLE 19. STANDBY PAY..........................................................................................................................14 ARTICLE 20. INSURANCE...............................................................................................................................14 ARTICLE 21. REIMBURSEMENT ACCOUNT.................................................................................................16 ARTICLE 22. OVERTIME.................................................................................................................................16 ARTICLE 23. PROBATIONARY PERIOD........................................................................................................17 ARTICLE 24. PROMOTIONS............................................................................................................................17 ARTICLE 25. RETIREMENT.............................................................................................................................17 ARTICLE 26. SHIFT DIFFERENTIAL...............................................................................................................18 ARTICLE 27. LEAVE-OF-ABSENCE WITH PAY............................................................................................18 ARTICLE 28. LEAVE-OF-ABSENCE WITHOUT PAY.....................................................................................22 ARTICLE 29. CLASSIFICATION STUDIES.....................................................................................................25 ARTICLE 30. DRIVER'S LICENSE...................................................................................................................26 ARTICLE 31. LAYOFF PROCEDURE..............................................................................................................26 ARTICLE 32. LIGHT DUTY...............................................................................................................................27 ARTICLE 33. MEDICAL EXAMINATION.........................................................................................................27 ARTICLE 34. MILEAGE ALLOWANCE...........................................................................................................27 ARTICLE 35. ACTING PAY..............................................................................................................................27 ARTICLE 36. PERFORMANCE REVIEWS......................................................................................................28 ARTICLE 37. PERSONNEL FILES...................................................................................................................28 ARTICLE 38. BULLETIN BOARDS..................................................................................................................28 ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS.........................................................28 ARTICLE 40. USE OF DISTRICT FACILITIES................................................................................................28 ARTICLE 41. SCOPE OF BARGAINING.........................................................................................................28 ARTICLE 42. IMPASSE PROCEDURES.........................................................................................................29 ARTICLE 43. SEVERABILITY..........................................................................................................................29 ARTICLE 44. UNIFORMS.................................................................................................................................29 ARTICLE 45. SUBSTANCE ABUSE POLICY..................................................................................................30 Local 501 MOU July 1,20196 to June 30, 2022 Page 1 8971551.1 OR040-032 ARTICLE 46. DUES DEDUCTIONS.................................................................................................................30 ARTICLE 47. UNION DUESAGENC�o�,�Y SHOP...................................................................................................30 ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES...............................................................................32 ARTICLE 49. SHIFT CHANGES.......................................................................................................................32 ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY..............................................................34 ARTICLE 51. RESIGNATION...........................................................................................................................34 ARTICLE 52. OPERATOR CERTIFICATION...................................................................................................34 SIGNATUREPAGE..............................................................................................................................................35 EXHIBITA.............................................................................................................................................................34 Local 501 MOU July 1,201%to June 30, 202249 Page 2 8971551.1 OR040-032 i MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE UNIT In accordance with the provisions of California Government Code Sections 3500,et seq.,and Resolution No.99- 24 of the Joint Board of Directors,the District's authorized representatives have met and conferred in good faith with representatives of the International Union of Operating Engineers,Local 501,for the District's Operations and Maintenance Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by Local 501 accept these terms and conditions,and that the Board of Directors adopt by Resolution the changes and additions to the wages,hours,and conditions of employment for the employees represented by Local 501 as set forth in this Agreement. ARTICLE 1. RECOGNITION 1.1.This Agreement is entered into between the Orange County Sanitation District,referred to hereinafter as the District,and the International Union of Operating Engineers,Local 501,AFL-CIO,referred to hereinafter as Local 501,as a mutual recommendation to the Board of Directors of the District of those wages,hours of work,and terms of conditions of employment which are to be in effect at 12:01 a.m.on July 1,20196. 1.2.The District recognizes the International Union of Operating Engineers,Local 501,AFL-CIO,which was certified on October 10, 1985,as the exclusive recognized employee organization for matters within the scope of representation for the following classifications, as set forth in Exhibit A(attached hereto and incorporated by reference), as well as additional classes as may be added hereafter by the District. ARTICLE 2. DURATION 2.1.This Agreement will be binding on the District and Local 501 when approved and adopted by the District's Board of Directors. This Agreement will terminate on June 30,20224-9. Any issue regarding the question of representation shall be brought pursuant to the Employer-Employee Relations Resolution (EERR), Resolution No.OCSD 99-24. ARTICLE 3. SUCCESSOR AGREEMENT 3.1.Local 501 will submit in writing its initial proposal for a successor agreement 60 days prior to the expiration date of this Agreement. ARTICLE 4. LOCAL 501 ACCESS 4.1.The Local 501 representative will have access to the District's facilities during working hours forthe purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application Local 501 MOU July 1,20196 to June 30, 20224-9 Page 3 8971551.1 OR040-032 of provisions of this Agreement. The Local 501 representative must obtain authorization for each visit in advance from the Director of Human Resources,or designee. 4.2.Local 501 will provide the Director of Human Resources,or designee,with a list of Representatives who are authorized to request access under this Article, and will notify the Director of Human Resources, or designee,of any changes in that list. 4.3.Local 501 access will not interfere with District operations,or with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated confidential or secure. ARTICLE 5. LOCAL 501 RIGHTS 5.1.Local 501 may designate fourteen (14)employees to act as stewards for employees covered by this Agreement. Local 501 will furnish the Director of Human Resources, or designee, with the names of employees selected as stewards and will update the list as necessary. An alternate steward may be designated to act in the absence of the regular steward. Employees not listed on the roster of stewards provided to the District by the Local 501 may not act as representatives. 5.2.For purposes of meeting and conferring,Local 501 will be allowed to designate two(2)stewards to attend (additional stewards may be added by mutual agreement of the parties).An additional employee,who may or may not be a designated steward,may be invited to attend to provide subject matter knowledge. 5.3.Stewards will not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither the District nor the Local 501 will interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in Local 501 activity. ARTICLE 6. DISTRICT RIGHTS 6.1.District inherent rights,powers,functions,duties,responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making,except as specifically modified by the express provisions of this Memorandum.District rights include,but are not limited to,the exclusive right to consider the merits, necessity or organization of any service or activity provided by law,or administrative order;determine the mission of its constituent departments,commissions and boards;set standards of service,determine the procedures and standards of selection for employment and promotion;establish and implement performance standards;direct its employees;take disciplinary action for proper cause;layoff employees from duty because of lack of work or lack of funds;maintain the efficiency of District operations;determine the methods,means and personnel by which District operations are to be conducted;determine the content of job classifications;classify and reclassify positions;take all necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over its organization and the technology of performing its work. 6.2.District retains all authority and rights conferred on it by law,or other legal sources,except to the extent that such authority is explicitly waived by the express terms of this Agreement. District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring,however,that the exercise of such rights does not preclude Local 501 from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages,hours,and other terms and conditions of employment. ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT 7.1.There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to actual or perceived race, color, religion, national origin,ancestry,sex, gender,gender identity, gender expression,sexual orientation,age,physical or mental disability,medical condition,genetic information, marital status,or military or veteran status,or any other lawfully protected class. To the extent required by Local 501 MOU July 1,20196 to June 30, 202249 Page 4 8971551.1 OR040-032 law or by the District's rules or regulations,this provision of the Agreement will be applied to all members of the Unit without regard to any protected classification. ARTICLE 8. SMOKE-FREE WORK ENVIRONMENT 8.1.The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking,and the potentially harmful effect it has on the health and well being of District employees and their families,smoking and the use of tobacco (cigarettes,cigars,e-cigarettes("vaping"]and related tobacco products and technologies)is not acceptable within District facilities,and may occur only in areas posted for smoking. ARTICLE 9. SAFETY 9.1.It is the duty of the District to provide and maintain a safe place of employment. Local 501 will cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to unsafe practices,equipment,and conditions,and to follow the safety regulations and requirements of the District,and to report any unsafe practices or conditions to their immediate supervisor.An employee will not be required to perform work that is unsafe. 9.2.The District wiWestablislnhas a Safety Committee that w4includes up to six(6)members of Local 501.�he Commented[DT3]:This was updated since the safety committee's recommendations are advisory. The committee will meet at least quarterly;however,additional Committee has already been created(housekeeping) meetings may be scheduled by either Local 501 or the District. ARTICLE 10. DISCIPLINE AND DISMISSAL 10.1. Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the Unit:verbal reprimand;written reprimand;suspension without pay;reduction in pay, demotion to a classification with a lower pay grade,or dismissal. 10.2. Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the District for just cause. 10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves suspension without pay, reduction in pay, demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was personally delivered or deposited in the mail,which will be the date of issuance. 10.5. The Notice of Intent will contain the following:(1)a description of the disciplinary action intended and the effective date of the action;(2)the reasons for the proposed action;(3)a copy of the charges and materials upon which the action is based;and,(4)a statement of the employee's right to respond,either verbally or in writing to the person initially imposing the discipline, or to a District management representative with authority to make an effective recommendation on the proposed action,the person to whom any response must be directed,and the fact that such response must be received within ten (10)business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 10.6. Prior to the effective date of the proposed disciplinary action,the employee will be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response,the District Local 501 MOU July 1,20196 to June 30, 202249 Page 5 8971551.1 OR040-032 will notify the employee in writing of the action that will be taken. Such action may not involve discipline more severe than that described in the Notice of Intent;however,the District may reduce discipline without further notice.Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies and Procedures Manual. 10.7. Dismissal will be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve,but is not limited to,dishonesty,possession,use,sale or being under the influence of drugs or alcohol,theft or misappropriation of District property or funds, fighting on the job,insubordination,acts endangering people or property,or other serious misconduct. The District may substitute documented suspensions without pay for written reprimands. 10.8. If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources,or designee, within ten(10)business days following the effective date of the disciplinary action(for suspensions,the effective date will be the first business day following the final day of the suspension). The Director of Human Resources,or designee,will schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager.The hearing officer may not be an employee of the District. The hearing officer will provide a written, advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent.The decision of the General Manager will be final. 10.9. Disciplinary actions will be recorded in employee performance reviews. All disciplinary action documentation,except verbal reprimand documentation,will be maintained in an employee's Personnel File in the Human Resources Department. Verbal reprimand documentation will be maintained in the supervisor's employee files. Supervisors shall inform management staff when a verbal reprimand is to be implemented. If after twenty-four(24)months from implementation,there have been no recurrences of similar incidents;supervisors shall destroy the verbal reprimand documentation. 10.10. Written reprimands may be removed from an employee's personnel file twenty-four (24) months subsequent to the date of the issuance if there has been no recurrence of a similar incident during the period. If management agrees to remove the disciplinary action documentation from an employee's personnel file, such documentation will be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of District proposed discipline. 10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this Article will be construed as a waiver of any statutory or constitutional rights. 10.12. A reduction in pay or a demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example,reclassifications,"bumping"associated with layoffs,reasonable accommodation)will not be considered discipline. ARTICLE 11. GRIEVANCE PROCEDURE 11.1. A grievance is any complaint that management has violated a specific provision of this Agreement, except that,in accordance with Article 10 above,discipline,which requires a Notice of Intent,may not be reviewed under this Grievance Procedure. 11.2. A grievance may be brought to the attention of the District by an individual employee within the Unit or by the Local 501.The District may not bring a grievance through this procedure. Grievances brought by two(2)or more employees,and concerning the same incident,issue,or course of conduct,or multiple grievances brought by the same employee may,upon mutual agreement of the District and the Local 501,be consolidated for the purposes of this procedure. 11.3. Employees are encouraged prior to bringing forward a formal grievance,to discuss the issue with the Director of Human Resources,or designee,in an effort to bring about an informal resolution. Local 501 MOU July 1,20196 to June 30, 202249 Page 6 8971551.1 OR040-032 11.4. An employee may be self-represented or be represented by the Local 501 at all steps of the Grievance Procedure unless specifically agreed otherwise by the Local 501 and the employee. The District will provide a copy of all written grievance settlements to the Local 501. Any reference to days in this Article means business days,Monday through Friday,excluding recognized holidays. 11.4.1. Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor,or designee,within ten(10)days of the occurrence of the event giving rise to the complaint,or within ten(10)days from the time that the employee became aware of such event. The supervisor,or designee,will attempt to resolve the issues surrounding the complaint,and respond in writing to the employee within ten(10)days. 11.4.2. Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee. This request for formal review must be presented on a form provided by the District within ten(10)days of the conclusion of Step 1.A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The written grievance must: 11.4.2.1. Identify the specific management act to be reviewed; 11.4.2.2. Specify how the employee was adversely affected; 11.4.2.3. List the specific provisions of the MOU that were allegedly violated and state how they were violated; 11.4.2.4. Specify the remedy requested;and 11.4.2.5. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.4.3. The Division Manager,or designee,will respond in writing to the employee within ten(10) days after the date the grievance is received. 11.4.4. Step 3• If a grievance is not settled under Step 1 or Step 2,it may be presented to the employee's Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by the District within five (5)days of the conclusion of Step 1 or 2,and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources,or designee. The Department Director,or designee,will respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.5. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an Assistant General Manager,or designee,within five(5)days from the date the Step 3 finding was issued. The Assistant General Manager,or designee,will respond in writing to the employee within ten(10)days after the date the grievance is received. 11.4.6. Step 5.Appeal to the General Manager,or designee,is the final step in the Grievance Procedure.If the grievance cannot be resolved under Step 4,it may be presented to the General Manager,or designee,within five(5)days from the date the Step 4 finding was issued. The General Manager,or designee,shall respond in writing to the employee within ten (10) days after the date the grievance is received. The decision of the General Manager,or designee,is final. 11.5. General Provisions. An employee will be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by a Local 501 steward, the employee representative will be given reasonable time off without loss of pay to perform this responsibility. Absence from work will be approved only if it does not cause disruption to District operations. However, if the time requested cannot be provided,an alternate time will be arranged. Local 501 MOU July 1,20196 to June 30, 202249 Page 7 8971551.1 OR040-032 11.6. Failure of a management representative to respond within the appropriate time limit will provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits,it will be considered resolved on the basis of the preceding response. The Director of Human Resources,or designee,may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. Time limits may also be extended at any step upon mutual agreement of the parties. 11.7. Resolution may be agreed upon at any stage of the grievance process. However,the Local 501 will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. PROBLEM SOLVING PROCEDURE 12.1. Employees may bring problems to the attention of District managers through the Problem Solving Procedure. This procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this Article means business days. 12.2. Step 1:An employee will submit his/her issue that is not subject to the Grievance Procedure in writing to his/her supervisor,or designee,within ten(10)days of the occurrence of the event giving rise to the complaint or within ten(10)days from the time that the employee became aware of such event. The supervisor,or designee,will review the situation or decision,and provide a written response within five (5)days from the date they were notified of the problem. 12.3. Step 2:If the problem is not resolved to the employee's satisfaction,a written statement concerning the problem may be filed with the employee's Division Manager or designee,within ten(10)days of receipt of the supervisor's decision. The employee raising the issue will be provided a written response from the Division Manager,or designee,within ten(10)days after their statement is received. 12.4. Step 3:If a problem is not settled under Step 1 or Step 2,it may be presented within ten(10)days to the Director of Human Resources, or designee,who, at their discretion, may form a Work Issues Committee, comprised of the employee's Department Director, or designee, another management representative and two(2)Local 501 representatives. The Work Issues Committee may convene to cooperatively review and develop recommendations for solution(s)to the problem.The Director of Human Resources,or designee,may utilize the committee's recommendation(s)to respond in writing to the employee within fifteen(15)days after the date the problem is received. 12.5. Time limits may be extended for cause upon mutual consent of the parties,and the decision of the Director of Human Resources,or designee,is final. ARTICLE 13. SALARY ADJUSTMENTS AND COMPENSATION 13.1. Merit Pay Step System 13.1.1. Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between each step. 13.1.2. Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.2. Merit Pay 13.2.1. Step Increase Pay—Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: Local 501 MOU July 1,20196 to June 30, 202249 Page 8 8971551.1 OR040-032 13.2.1.1. Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.2.1.2. Ineligible-Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.2.1.3. Performance Management Program:The performance management program includes three (3) rating categories (exceeds, proficient, and needs improvement)for performance appraisals. 13.2.2. Development Pay—Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump- sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: 13.2.2.1. Education—Eligible employees who have completed a degree of approved subjects at an accredited college or university will receive$25.000-.7-6 per pay period for an associate degree and $500044-13 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at $50.0044 53 per pay period. 13.2.2.2. Certification/License— Eligible employees who obtain a District approved certification or license will receive$15247-.62 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses.The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at$45.7222-.96 per pay period. 13.2.2.2.1. The overall maximum Development Pay for any combination of education,certification and/or licenses is fixed at$95.7264­29 per pay period. 13.2.2.2.2. Grade V Pay — Employees who receive Grade V pay in accordance with the applicable District policy are ineligible to receive Development Pay fortheir Grade V California Wastewater Treatment Plant Operator Certificate. Employees who possess a Grade V Certificate and do not meet the criteria for Grade V Pay are eligible for Development Pay in accordance with the Development Pay Program Guidelines. 13.2.2.2.3. Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.2.2.2.4. Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.3. Salary Range Adjustments 13.3.1. Effective the first pay period in July 20196,employees under this Agreement will receive salary range adjustments at a flat rate of 3.0%. Local 501 MOU July 1,20196 to June 30, 202249 Page 9 8971551.1 OR040-032 13.3.2. Effective the first pay period in July 20204-7,employees under this Agreement will receive salary range adjustments at a flat rate of 3.0%. 13.3.3. Effective the first pay period in July 202148,employees under this Agreement will receive salary range adjustments at a flat rate of 3.0%. ARTICLE 14. SEVERENCE PAY 14.1. Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause,when a full-time employee is terminated by action of the District, the employee will be notified in writing two (2)weeks prior to the effective separation date. In the event the District does not give such notification,the employee will be entitled to severance pay in accordance with the formula set forth below: 14.1.1. Full-time,regular employees will be entitled to eight(8)hours pay for each full calendar month of continuous employment not to exceed one hundred sixty(160)hours pay. 14.1.2. Employees in limited term or part-time positions,probationary employees and employees who are separated for cause are not eligible for severance pay under any circumstances. ARTICLE 15. DEFERRED COMPENSATION 15.1. Employees may participate in the District approved deferred compensation plan subject to IRS requirements,and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. HOLIDAYS 16.1. For the purpose of the District's business calendar,the days listed below are observed by the District as holidays. Employees who are assigned to eight(8),nine(9)or ten(10)hour shifts,Monday through Friday,will observe the holidays listed in Schedule A. Employees who are assigned to twelve(12)hour shifts will observe the holidays as listed in Schedule B. Employees shall receive holiday pay if their entire scheduled work shifts immediately preceding and following the holiday are in a paid payroll status,meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts. When an employee's work schedule requires that they work on an observed holiday,the employee shall be paid at his/her regular rate of pay for the holiday,or receive an equivalent amount of Holiday Compensatory Time Off if requested by December 31 of the prior year on the Holiday Comp Cashout Form. Employees shall also receive premium pay at the rate of one and one half(1.5)times their regular hourly rate for all hours actually worked.Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). SCHEDULE A HOLIDAY 20202047 20212M 20222049 January January December New Year's Day 1 1 31 February February February Lincoln's Birthday 12 12 11 February February February President's Day 17 15 21 Memorial Day May 2 May 31 May 30 Local 501 MOU July 1,20196 to June 30, 202249 Page 10 8971551.1 OR040-032 SCHEDULE A HOLIDAY 20202W 20212049 20222849 Independence Day July 3 Jul Jul 4 September September September Labor Day 7 6 5 November November November Veteran's Day 11NevembeF40 11NGV6Mb&•" 11NevembeF44 November November November Thanksgiving Day 26ni....o.,00�, r fibe_e 23 25n oyernbo.Q 24n oyem.e,28 November November November Day after Thanksgiving 27NInve.o."„bPr� 24 26NInvernber 93 25^'o e�� 29 December December December Day before Christmas I 24DesembeF-2-S I 23&9^ °AOA 23^---- er ^ December December December Christmas 259esember26 24Desember- 5 269esembeF25 Floating Holiday See 16.2 See 16.2 See 16.2 SCHEDULE B HOLIDAY 2020294Z 202124U 20222VW January January January New Year's Da 1 1 1 February February February Lincoln's Birthda 12 12 12 February February February President's Da 17 15 21 Memorial Day May 2 May 31 May 30 Inde endence Day July 4july 4 Jul July 4 September September September Labor Day 7 6 5 November November November Veteran's Day 11Nevember--U 11Nevembef--4 11Neveff eF November November November Thanksgiving Day 26NevembeF2-3 25NaY *^ °9^ " 24Nevember-28 November November November Day after Thanksgiving 27Wavember�� 24 26^'^�,.o.�mw,-�^ 2 25^'o ef�� 29 December December December Day before Christmas 24^^^ b^ '^^ '^ 24^^^ b^ '^ 24 •'^ December December December Christmas 25DesembeF25 25DesembeF25 259esember-24 Floating Holiday See 16.2 See 16.2 See 16.2 16.2. Floating Holiday: Employees may elect one(1)day during each year as a"Floating Holiday". New employees shall be granted a"Floating Holiday"on a pro-rata basis in the first calendar year of service per the following table: Hire Date Percent 1st Quarter(January-March) 100% 2nd Quarter(April-June) 75% 3rd Quarter(July-September) 50% 40'Quarter(October-December) 0% Local 501 MOU July 1,20196 to June 30, 202249 Page 11 8971551.1 OR040-032 16.3. Employees must use the"Floating Holiday"within the calendar year it is granted.Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17. HOURS OF WORK 17.1. For record keeping and accounting purposes,the"workweek"for full-time employees is forty(40)hours per 168-hour period,to be paid on a biweekly payroll basis of eighty(80)hours worked. Employee work periods maybe scheduled in shifts of four 9-hour days and one 4-hour day each workweek(9/80),five 8-hour days each workweek(10/80),four 10-hour days each workweek(8/80),or three 12-hour days and one 4-hour day each workweek(7/80). The starting and ending times of employees'workweeks may vary but will be subject to a bid agreement based on seniority.The regular hours of work for each shift will be consecutive and will be posted. Current practices regarding hours of work for Maintenance personnel and meals for Operations personnel will continue. The regular hours of work for each shift will be consecutive,divided only by normal breaks or rest periods. Work schedule and shift start and stop times will not be adjusted to avoid payment of overtime. 17.2. The District may,in accordance with Article 6—District Rights,change an employee's work schedule and/or work location with a thirty(30)day written notice to the affected employee. The change will not be made as a disciplinary action or to avoid payment of overtime. The thirty(30)day written notice will not apply to shift changes pursuant to Article 49. 17.3. E^R^'^Y^86•^"b^allnW^C'^The last fifteen(15)minutes of an Employee's work shift will be designated as their cleanup period. i^ 1 11 ^^.^f^;;Gh wArk shift If the employee's work shift is extended,the fifteen(15)minute cleanup period shall occur at the end of the extended period. Employees may not avoid the cleanup period and end their shift before its scheduled ending time. 17.4. Employees will receive paid rest periods not to exceed ten(10)minutes no more than twice in an eight (8),nine(9)or ten(10)hour shift or three(3)times for a shift of more than ten(10)hours. Each shift will contain a minimum thirty(30)minute meal period for every six(6)hours of work. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that his/her hours had been changed,he/she will receive two(2)hours pay at the overtime rate. 17.5. Operations 17.5.1. For purposes of this Article,the day shift is defined as an assigned work shift of at least seven(7)consecutive hours,between 0600 hours and 1800 hours. The night shift is defined as an assigned work shift of at least seven(7)consecutive hours,between 1800 and 0600 hours. 17.5.2. Any employee who declares that an individual hardship exists should submit a request,to be excluded from the twelve(12)hour workweek,to the Human Resources Department. Human Resources will determine if there is a valid employee hardship,on a case by case basis,and notify the Local 501 representative of the decision. 17.5.3. For the purposes of this Article,Cen-Gen Operators are included in this unit. 75.2.17.5.4. Reopener: The District and the Group agree to reopen this Agreement to discuss the pPower Palant Oeperator mob family and District proposals regarding Article 17. 17.6. Maintenance 17.6.1. Maintenance: Except where otherwise provided below,the official workweek for full-time represented personnel in Maintenance will be forty(40)hours per week. The workweek will consist of a four(4)consecutive day work schedule with ten(10)consecutive daily hours in a workday with a one-half('/z)hour unpaid lunch. Local 501 MOU July 1,20196 to June 30, 202249 Page 12 8971551.1 OR040-032 17.6.2. The workday will be 6:00 a.m.to 4:30 p.m. The workweek will begin on a Monday or a Tuesday and end on the corresponding Thursday or Friday. All hours greater than 40-hours in an individual's assigned workweek will be considered overtime and paid at one and one- half(1.5)times the regular rate of pay. 17.6.3. Any employee who declares that an individual hardship exists should submit a request,to be excluded from the 4/10 workweek,to the Human Resources Department. Human Resources will determine if there is a valid employee hardship,on a case-by-case basis,and notify the Local 501 representative of the decision. ....... ___ --neratin- For purposes of this Article,the day shift is defined as an assigned W rkshift of at least seven(7)n n„+i..e hers he+...een 0600 and 1800 hors The n nh+shif+is 0600 heuFs. 6.5. ARY empleyee whe G18GIaFw;thatan individual hardship exists sheuld submit a Fequest te be • ..nludt-+ Frew. the twelve (12) hour shift to Human Rese„rnes Human Rese„rnes ...ill dt-tormonp 0fthF-rP is a valid empleyee hardship,GR a Gase by Gage basis,and RGtify the IeGal 7n-ro-o.6.17.6.4. Disputes over days off will be handled on the basis of seniority except when the District can demonstrate a business necessity. ARTICLE 18. CALL-BACK PAY 18.1. When an employee is called back to work by District management without prior notice, and the employee has completed his/her normal work shift and left the work station;when prior notice is given but the work begins on the same day at least three(3)hours after completion of the regular shift;or when an employee assigned to standby is actually called to work,the employee will receive a minimum of three(3)hours of call back pay. The three(3)hour minimum,whether or not actually worked,will be paid at the rate of one and one half(1.5)times the regular hourly rate. 18.2. The call back period shall begin when the standby employee has been informed by the District to return to work. The call back period shall end when either the employee arrives at his or her residence or the original destination;in either case,the employee must inform the District upon arrival. 18.3. If the call back period has ended and the employee is called back to work(whether within or outside of the 3-hour minimum timeframe),a new call back period will be started and the employee will be eligible for at least the 3-hour minimum call back pay. 18.4. If the call back period has not ended and the employee is called back to work(whether within or outside of the 3-hour minimum timeframe), the call back period and associated pay will continue but the employee will not be eligible for another 3-hour minimum call back pay. 18.5. Call back pay is applied per call back and not per work assignment or work order. 18.6. Call back work performed by employees on standby assignments is intended for activities that are imperative and not routine in nature,as determined by the applicable on-duty Operations Supervisor or designee. 18.6.1. In some instances, if call back work can be postponed for several hours,the Operations Supervisor or designee will do so as a courtesy to the employee and to allow for the work to be performed during daylight or day shift. For instance,a breakdown occurs at 3:00 a.m.but work can be postponed a few hours so the standby employee can be called in at 6:00 a.m. Local 501 MOU July 1,20196 to June 30, 202249 Page 13 8971551.1 OR040-032 ARTICLE 19. STANDBY PAY 19.1. Treatment Plant: Standby is time during which an employee is not required to beat the work location or at the employee's residence but is required to be available for immediate return to work. Each plant maintenance craft may create a standby list of a minimum of three(3)employees. Standby lists shall first be populated by volunteers. If,after allowing for volunteers,the standby list still does not meet the three(3)employee minimum,OCSD shall populate the remaining vacant slots of the standby list by means of reverse seniority within the division. Employees who volunteer or are mandated to be on the standby list shall be competent,experienced,journey level employees. Employees who are on their initial probation shall not be eligible for standby. 19.1.1. Each craft may create additional standby lists if anticipated work requires a specific skill set that may not be readily available on the existing standby list. If additional standby lists are required,affected employees will be notified. 19.2. Collections System: Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work.The standby list for the Collections division will contain a minimum of six(6)employees;three(3)employees for primary standby and three(3)employees for secondary standby. The standby list shall first be populated by volunteers. If,after allowing for volunteers,the standby list still does not meet the six(6) employee minimum,OCSD shall populate the remaining vacant slots of the standby list by means of reverse seniority within the division. Employees who volunteer or are mandated to be on the standby list shall be competent and experienced,having one of the following: a. at least 18 months of experience within the Collection Division,and be at a Mechanic iob classification level:or b. at least four years of experience within the Collections Division. 19�2.19.2.1. Employees who are on their initial probation shall not be eligible for standby. 49�19.3. Employees shall not complete more than two(2)consecutive weeks of standby without a seven(7) day break between standby assignments. 49�19.4. Employees on standby will be compensated at the rate of$5400 per week. 19-.3.1.19.4.1. Employees whose standby assignment include an OCSD recognized Holiday will be compensated with two(2)hours of straight time pay._ Commented[NA2]:Added Side Letter language ARTICLE 20. INSURANCE 20.1. The District will provide healthcare and welfare insurance benefits. 20.2. All insurance coverage will become effective on the first day of the month following date of hire, regardless of hire date. An open enrollment period will be held annually. 20.3. Medical Insurance 20.3.1. The District will provide medical health insurance coverage through a Health Maintenance Organization (HMO) medical insurance plan, a Preferred Provider Organization (PPO) medical insurance plan,and a High Deductible Health Plan(HDHP). 20.4. Regular,full-time employees: Local 501 MOU July 1,20196 to June 30, 202249 Page 14 8971551.1 OR040-032 20.4.1. The District will contribute 90%of employee only premiums for the HMO medical health plans and 80% of employee only premiums for the PPO medical health plan. The District will contribute 80%for employee+1 dependent and full family premiums for the HMO or PPO medical plans. Any change in insurance rates will be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District's sponsored health insurance plan,the parties agree to meet and confer as to changes in the plan. 20.4.2. The HDHP will be accompanied by a Health Savings Account (HSA)to pay for qualified medical expenses.OCSD will use a portion of the cost savings in premiums to fund the HSA accounts during active employment only.The HSA will be funded with the savings generated annually by calculating the difference between the District's share of the PPO and HDHP premiums.Exact HSA account funding will be calculated annually,prior to open enrollment,in an amount up to the difference in deductibles, not to exceed the District's aforementioned annual premium cost savings. 20.4.3. The District may reopen negotiations at any time during the term of the MOU to address the impact of the Affordable Care Act(ACA),provided that no change may be made by the District unless such change is either(1)mandated by the ACA or,(2)mutually agreed upon by the parties. 20.5. Group Insurance Premiums 20.5.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 20.6. Life Insurance 20.6.1. The District will pay the full premium for$50,000 term life insurance on each employee. 20.7. Short Term Disability 20.7.1. The District will provide a non-work related,short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI)program for up to twenty-six(26)weeks following a fourteen(14)calendar day waiting period. 20.8. Long Term Disability 20.8.1. The District will provide a non-work related,long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability,not to exceed$5,000 per month,up to age 65,following a 90-day waiting period of continuous disability,at such time that an employee completes five(5)years of service. 20.8.2. For participants age 64 and younger,the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older,the maximum period of payment is specified. The specified periods and additional information about coverage is included in the District's long-term disability plan contract accession on the intranet. 20.8.3. No combination of disability or sick leave pay will result in more than an employee's regular rate of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.9. Dental Insurance 20.9.1. The District will contribute 80%of employee only and 80%of full family premiums for dental insurance. Local 501 MOU July 1,20196 to June 30, 202249 Page 15 8971551.1 OR040-032 20.10. Vision Insurance 20.10.1. The District will provide a vision insurance plan for regular,full-time employees and eligible dependents. 20.11. Retiring Employees 20.11.1. The District will pay,for employees hired prior to July 1, 1988, two and one-half(2.5) months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.11.2. In the event the District adds additional optional insurance plans,the District's share of the premium will be the same as for existing plans as set forth above. In the event the District changes underwriters for existing insurance plans,the District's share of the premium will be the same as for existing insurance plans as set forth above. 20.11.3. The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by ten dollars($10)per month for every Lull ear _- Commented[ss3]:Deric-we did not discuss this at the of continuous service up to a maximum of 25 years or two hundred fifty dollars($250)per table,but we have updated this language(house keeping)to month. align with OCSD's current practice.Are you OK with this update? 20.12. Health Retirement Account(HRA)Reopener: The District and the Group agree to reopen this Agreementto discuss HRA plan design and funding mechanism options,including District and/or employee funding,understanding the District is not making any commitment to District funding. ARTICLE 21. REIMBURSEMENT ACCOUNT 21.1. Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts employees must refer to the plan booklet available in the Human Resources Department. 21.2. Medical Care Reimbursement Account 21.2.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself/herself for payment of health care costs not otherwise covered by his/her medical insurance. 21.3. Dependent Care Assistance Account 21.3.1. The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself/herself for childcare expenses or day care for a disabled dependent. ARTICLE 22. OVERTIME 22.1. Employees will be notified as soon as practicable after the District decides upon the need for overtime or additional work. The District may require the performance of overtime. In the event no qualified employee wishes to work overtime,District's management may select employees with the ability to perform the work by inverse seniority. District managers will attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. For the purposes of overtime calculation,all time charged to unscheduled leave will not be counted as time worked. Pay for overtime will not occur until after work time(which includes scheduled leave) of forty(40)hours in a seven(7)day workweek is reached. Local 501 MOU July 1,20196 to June 30, 202249 Page 16 8971551.1 OR040-032 ARTICLE 23. PROBATIONARY PERIOD 23.1. All new employees and employees who are reassigned or laterally transferred serve an initial probationary period beginning with the date of hire,reassignment or transfer and extending to at least the first day of the pay period following six months of employment without a break in service. Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employee's capability to meet performance expectations for a position,and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.2. All new employees who are hired in apprenticeship and/or trainee positions shall serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following the complete period of training for the position,without a break in service. Extended absence without pay,short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employee's capability to meet performance expectations for a position,and thus the time spent on such leaves will not be included towards completion of the probationary period and may result in an extension. 23.3. Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his/her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. ARTICLE 24. PROMOTIONS 24.1. A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. The District will determine whether a vacant position will be filled as an open or promotional opportunity or recruitment. Whenever the District intends to fill a position by promotion,the District will post the opportunity for a minimum of ten(10)business days. Employees must apply during the period of posting. Notices will be posted on the District's intranet. 24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period six months after the effective date of the promotion. At any time during the promotional probationary period,an employee may be returned to his/her previous position. If the employee does not pass the probationary period,the District shall return the employee to his or her previous position or an equivalent position.The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety(90)days.If an employee is promoted during his/her initial probationary period,the period will be extended until at least the first day of the pay period six months after the effective date of the promotion. 24.3. Promoted employees will receive the equivalent of a one(1)step increase in pay,not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. RETIREMENT 25.1. The District will continue participation in the Orange County Employees Retirement System (OCERS),wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1. Employees hired before September 21,1979:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve (12)months average earnings,past and future service. Local 501 MOU July 1,20196 to June 30, 202249 Page 17 8971551.1 OR040-032 4.514 toward the empleyee'GGORtFil fn.+hncn nm nln..nnc...hn nlnnTnr+4n mnLn n e limn rinn'c' n 4n n+hn Dlon m, 25.1.2. Employees hired on or after September 21, 1979 and before July 1,2011:The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.2.1. The District will continue to pay 3.5%of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1.3. Employees hired on or after July 1,2011 and before January 1,2013:The Districtwill contract with OCERS to provide the 1.667%@ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six(36)months average earnings,past and future service. 25.1.3.1. The District will pay 0% of an eligible employee's base salary towards the employee's contributions to OCERS. 25.1.4. Employees hired on or after January 1.2013:The District will contract with OCERS to provide the 2.5%@ 67 benefit formula(Plan U-PEPRA)based on the highest consecutive thirty-six (36)months average earnings,past and future service. 25.1.4.1. The District will pay 0% of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.5. All monies actually contributed into the retirement system by an employee will be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. ARTICLE 26. SHIFT DIFFERENTIAL 26.1. Employees who are assigned to work a night shift that consists of fifty percent(50%)or more of the hours between 6:00 p.m.and 6:00 a.m.and who actually work that shift will receive a shift differential of$3.00 per hour. ARTICLE 27. LEAVE-OF-ABSENCE WITH PAY 27.1. Personal Leave 27.1.1. Personal leave is provided to allow employees time off with pay for vacation,personal business and illness or injury. Personal leave is accrued by full-time employees for all paid hours, including hours actually worked and hours in a paid-leave payroll status,on a biweekly basis as follows: Years of Service Hours- Hours- Biweekly Annual In years 0 through 1 3.08 80- In years 2 through 4 5.38 140 In years 5 through 10 6.92 180 In year 11 7.23 188 In year 12 7.54 196 In year 13 7.85 204 In year 14 8.15 212 In year 15 8.46 220 In year 16 8.69 226 In year 17 8.92 232 In year 18 9.15 238 Local 501 MOU July 1,20196 to June 30, 202249 Page 18 8971551.1 OR040-032 Years of Service Hours- Hours- Biweekly Annual In year 19 9.38 244 In year 20 and over 9.62 250 27.1.2. When unpaid absences occur,personal leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked,and is applicable to all types of leave,whether legally protected or not. 27.2. Scheduled Time Off 27.2.1. Management will make reasonable effort,considering the operational needs of the District,to accommodate all employee requests for time off. Scheduled time off should normally be requested at least two(2)weeks in advance to increase the likelihood of those dates being approved. 27.2.2. Employees with at least one(1)year's service must request and take at least forty(40)hours off each year. 27.2.3. Supervisor absences will not affect an employee's ability to schedule time off unless the time off request is submitted within two(2)weeks of the date requested. 27.2.4. Requests for time off that are submitted beyond six(6)months shall not be approved unless the request is for at least one(1)week induration. These requests shall be approved based on seniority. Requests for time off that are less than one(1)week induration must be submitted within six(6)months of the date requested. Time off requests that are submitted within six(6) months shall be approved on a first-come,first-serve basis based on staffing requirements. Excessive single or partial day requests for time off may be cause for denial ifthe absence(s)is found to negatively impact the effectiveness of work teams,scheduling of work,training,and the ability to take multiple days off by other staff. 27.2.5. Full-day time off requests with less than twenty-three(23)hours'notice shall be considered unscheduled. All other time off requests, including partial day time off requests, must be requested in accordance with the provisions of this Article and may be considered scheduled at management's discretion based on business needs. 27.3. Unscheduled Time Off 27.3.1. Personal leave provides income protection to an employee unable to work due to illness,injury or pregnancy,caring for an ill or injured member of his/her immediate family or other personal emergency. Unscheduled time off must be accounted for by completion of an Unscheduled Time Off Report upon the employee's return to work. It is the responsibility of District's management to control the potential abuse of unscheduled time off privileges. Tardiness less than fifteen (15) minutes will not be deducted from the employees pay, but numerous occurrences will be addressed through the progressive discipline procedures.Employees who are more than fifteen(15)minutes tardy to work must use accrued time off to offset the time away from work. Tardiness of more than fifteen(15)minutes may be considered unscheduled time off based on excessive occurrences. 27.3.2. Employees must notify their supervisor prior to the start time oftheir shift when they are unable to report to work.Any absence that is requested within twenty-three(23)hours of the start of an employee's work schedule,excluding protected leaves of absence and bereavement leave, shall be considered unscheduled time off. 27.3.3. An employee's attendance record will be reviewed with an employee after five(5)separate occurrences of unscheduled time off to provide an opportunity to assess problems that could potentially lead to disciplinary action. The accumulation of the sixth and seventh occurrence within a twelve(12)month period will result in a verbal warning. The eighth occurrence will Local 501 MOU July 1,20196 to June 30, 202249 Page 19 8971551.1 OR040-032 result in a written warning. Employees who are charged with ten occurrences of unscheduled time off within a calendar twelve(12)month period will be subject to termination.A rolling(12) month calendar period will be utilized to measure absence occurrences.A"rolling"twelve(12) month calendar period is measured backward from the date the employee uses the leave. Absences of multiple consecutive days involving the same injury or illness will be considered a single occurrence.The District also has the right to discipline employees on the basis of total absences away from work. 27.3.4. Employees returning from an extended leave should notify their supervisor as soon as possible to facilitate personnel scheduling. 27.3.5. The employee may be required, at any time, to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness; however, for unscheduled absences of ten(10)consecutive days or more,a request for leave and a medical statement, on prescribed forms,stating expected date of return must be submitted to Human Resources. For absences of one(1)or more working days in an unpaid status,a request for leave and a medical statement on prescribed forms,stating expected date of return must be submitted to Human Resources. 27.4. Personal Leave and Workers'Compensation Leave 27.4.1. Employees who are injured in the course of their employment are placed on Workers' Compensation Leave,and receive wage loss benefits to which they are entitled under the Workers'Compensation Act. Employees may request to receive prorated Personal Leave pay to supplement their Workers'Compensation payments in an amount such that the sum of both is equal to the employee's regular base pay. 27.5. Personal Leave Payoff 27.5.1. Employees who terminate,retire or decease will be paid in full at their current rate of pay for all Personal Leave hours accrued. 27.6. Maximum Accrual 27.6.1. Employees may have a maximum accumulation of four hundred forty(440)hours of personal leave as of the last day of the final pay period in December of each year. In the event an employee accrues personal leave in excess of four hundred forty(440)hours,it must be used prior to said December date. All other remaining hours in excess of four hundred forty(440) will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.7. Sick Leave Bank 27.7.1. Employees who elected to bank sick leave accrued prior to the implementation of Personal Leave provisions may elect to use such time off for absence due to a bona fide illness,injury or pregnancy;to attend to the illness or injury of an immediate family member;or,for an employee who is a victim of domestic violence,sexual assault,or stalking,for the purposes described in Labor Code sections 230(c)and 230.1(a). Employees who retire or decease will be paid at the fifty percent(50%)rate for all banked sick leave hours;an employee who terminates will be compensated for banked sick leave as follows: Banked Sick Leave Rate of Payoff Hours 0—100 0 percent 101—240 25 percent 241—560 35 percent Over 560 50 percent Local 501 MOU July 1,20196 to June 30, 202249 Page 20 8971551.1 OR040-032 27.7.2. If the need for leave is due to the employee's own serious health condition,as defined in the Family and Medical Leave Act (FMLA) or the California Family Rights Act (CFRA), the certification requirement will comply with the provisions of these Acts. 27.8. Jury Duty Leave 27.8.1. Any full-time employee,including probationary,who is called forjury duty shall be entitled to his or her regular pay for those hours of absence due to performance of jury duty for a period up to twenty-two(22)working days. 27.8.2. Prior tojury duty service,each employee must complete a time off request through the District's timesheet system and provide a copy of the summons to his or her supervisor. 27.8.3. Employees who work other than the day shift who are called forjury duty will be considered on day shift for the duration of their jury service for purposes of this provision. If a portion of that shift should fall on a weekend or other day the employee is not required to be present in court, the employee will be expected to work. 27.8.4. A copy of the jury notice must be provided to the employee's supervisor. Employees must report forwork during their regularly scheduled work shift when they are relieved from jury duty, unless there is less than one-half('/z)of their regular shift remaining. 27.9. Witness Leave 27.9.1. Any full-time,including probationary,employee,who is required to be absent from work by a subpoena properly issued by a court,agency or commission legally empowered to subpoena witnesses,which subpoena compels his/her presence as a witness,except in a matterwherein he/she is named as a defendant or plaintiff or as an expert witness,will,upon approval of an online time off request, be entitled to the time necessary to comply with such subpoena, provided any fees received for such service,exclusive of mileage,are submitted to the District for deposit in the General Fund of the District. 27.9.2. An employee so subpoenaed must submit a copy of the subpoena to his/her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave,the employee must report for work at the District for time not actually retained on witness service of one(1)hour or more prior to and/or upon completion of each day's service,exclusive of travel time. 27.10. Military Leave 27.10.1. A request for military leave will be made upon leave-of-absence forms approved by the Human Resources Department and will state the date when it is desired to begin the leave-of- absence and the date of anticipated return. A copy of the orders requiring such military service will be submitted with the request. 27.10.2. Provisions of the Military and Veterans Code of the State of California,Sections 395-395.5 will govern military leave. In general,current law provides that an employee having one(1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30)days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay,not exceeding seventeen(17)calendar days per year,although the employee may,at his or her option,elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity,but may have their regular work schedule changed to accommodate the required time off. 27.11. Bereavement Leave Local 501 MOU July 1,20196 to June 30, 202249 Page 21 8971551.1 OR040-032 27.11.1. Any full-time employee,whether probationary or regular,will receive a maximum of thirty- six (36) hours of paid time for the death or funeral of an immediate family member. Bereavement leave shall be used within six(6)months of the death of the immediate family member.Immediate family member is defined as the employee's father,step-father,father-in- law, mother,step-mother, mother-in-law,brother,step-brother,sister,step-sister,husband, wife,domestic partner,biological child,adopted child,step-child,child of a domestic partner, grandchild,grandparent,foster parent,foster child,legal guardian,or any family memberwith whom the employee resides. Employees may be required to furnish evidence satisfactory to the District of the family member's death and the employee's relationship to the deceased family member. Employees may submit requests for bereavement leave after the six (6) months to the Director of Human Resources or designee,who has the discretion to grant or deny such requests. Any denial of a request for the use of bereavement leave after the designated six(6)months is not grievable or otherwise subject to appeal. ARTICLE 28. LEAVE-OF-ABSENCE WITHOUT PAY 28.1. It is the policy of the District to grant employees leaves-of-absence without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below,employees will not receive compensation during an unpaid leave-of-absence.Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA(California Family Rights Act)for their own serious health condition. 28.2. Using the prescribed forms,approved by District management,any full-time,including probationary, or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty (1,250)hours of service,may be granted an FMLA or CFRA leave-of-absence without pay,not to exceed twelve(12)weeks in a rolling twelve(12)month calendar period.A"rolling"twelve(12) month period is measured backward from the date the employee uses the leave.A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five(5)consecutive working days,or for absences of ten(10) working days or more when using paid sick leave accruals. 28.3. Substitution of Paid Leave 28.3.1. Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition will be required to use all accruals before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one(1)day. 28.3.2. Personal leave accruals may be used for the care of the employee's father,step-father,father- in-law,mother,step-mother,mother-in-law,brother,step-brother,sister,step-sister,husband, wife,domestic partner,biological child,adopted child,step-child,foster child,legal ward,child of a domestic partner,grandchild,grandparent,foster parent, legal guardian,or any family member with whom the employee resides. 28.4. Permissible Uses 28.4.1. FMLA Leave. FMLA Leave may be used for: 28.4.1.1. The birth of a child or to care for a newborn of an employee; 28.4.1.2. The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3. The care for the employee's father,step-father,father-in-law,mother,step-mother, mother-in-law, brother,step-brother,sister,step-sister, husband,wife, registered domestic partner,biological child,adopted child,step-child,foster child,legal ward, child of a domestic partner,grandchild,grandparent,foster parent,legal guardian,or Local 501 MOU July 1,20196 to June 30, 202249 Page 22 8971551.1 OR040-032 any family member with whom the employee resides who has a serious health condition,as defined in the Act; 28.4.1.4. The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5. A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces.A qualifying exigency may include activities such as making arrangements for childcare,attending counseling relating to the active duty of the service member,or attending to farewell or arrival arrangements for the service member; 28.4.1.6. The care for the employee's family member or"next of kin"service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty.This leave may consist of up to twenty-six(26) weeks of unpaid leave during a single 12-month period. 28.4.2. CFRA Leave.CFRA Leave may be used for: 28.4.2.1. The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partner,and will run concurrently with FMLA Leave. 28.4.2.2. CFRA Leave may not be used for 1)an employee's incapacity due to pregnancy,2) leave due to a qualifying exigency,or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty.However,incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL)law. 28.5. General Provisions 28.5.1. Requests for FMLA and CFRA Leave 28.5.1.1. Where the need for Leave is foreseeable, the District requests thirty (30) days advance notice. 28.5.2. Medical Certification 28.5.2.1. As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by the employee's attending physician in accordance with the Department of Labor(DOL)regulations. 28.5.3. Medical and Dental Premiums 28.5.3.1. During FMLA and CFRA Leave,the District will pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee will be required to pay his or her share of medical and dental premiums.Failure to submit a monthly co-payment,in full,within forty-five(45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.4. Reinstatement 28.5.4.1. Upon expiration of FMLA or CFRA Leave,the employee will be reinstated to the same or a comparable position unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g.,lay-off),in which case the District's obligation to continue health and dental or other benefits will cease. Local 501 MOU July 1,20196 to June 30, 202249 Page 23 8971551.1 OR040-032 28.5.5. District Employment of Spouses/Domestic Partners 28.5.5.1. FMLA Leave.Married employees will be limited to a combined total of twelve(12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.5.5.2. CFRA Leave. Married employees and employees in domestic partnerships will be limited to a combined total of twelve(12)weeks CFRA Leave in a rolling twelve(12) month calendar period for the care of a parent or newly born or placed child. 28.5.6. General Leave 28.5.6.1. Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to personal matters or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.6.2. During a general leave-of-absence,the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.6.3. Failure to submit a monthly co-payment, in full,within forty-five(45)days of the invoice date will result in loss of group coverage.Coverage will be reinstated upon return to active employment. 28.5.7. Return to Work Policy 28.5.7.1. An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.5.7.2. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work, placement in an alternative position, if available,will be considered. The employee will be re-classified as medically disqualified while alternative positions are being considered. Such time off will be without pay; however,the employee may elect to use accrued leave hours,such as vacation,sick or personal,to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.5.7.3. If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions (and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA)and there is not an alternative position,or the employee's restrictions are not compatible with an alternative position, or the employee is not willing to return to work,the employee will be re-classified as medically disqualified and not permitted to work. Thereafter,the employee will be retired for disability,if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested,the employee's file will indicate the employee left for personal reasons. 28.5.8. Bridge of Service 28.5.8.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position within the District within one(1)year,the District will bridge the employee's service date. Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 28.5.9. Failure to Return to Work Local 501 MOU July 1,20196 to June 30, 202249 Page 24 8971551.1 OR040-032 28.5.9.1. If,upon the expiration of FMLA or CFRA Leave,or any District-approved extension thereof including General Leave, an employee fails to return to work and no additional leave has been authorized, the employee will be considered to have automatically resigned from his/her position. In such cases, the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.5.10. Compliance with Law 28.5.10.1.These leave-of-absence provisions will be interpreted and applied in a manner that is consistent with the provisions of FMLA,CFRA,ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law will govern. ARTICLE 29. CLASSIFICATION STUDIES 29.1. An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy,and forward it to the Director of Human Resources,or designee,for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process;therefore, classification study requests shall be submitted October 1st for the November review and according to the Finance budget schedule. District's management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.1.1. All classification study findings regarding existing classifications are subject to approval by the General Manager; findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study will be implemented in the first pay period immediately following the completion of the study unless the recommendations require action by the Board of Directors prior to implementation. In such event,the recommendations will be implemented in the first pay period immediately following authorization by the Board. 29.2. Y-Rating 29.2.1. In the event the duties and responsibilities of a position are allocated to a lower paid classification,the salary of the incumbent of that position will remain unchanged. 29.2.2. Y-rating will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay. 29.2.3. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.2.4. Career Change— Operator-in-Training: Y-rating will occur when an existing employee is selected as a candidate for an Operator-in-Training classification when the employee's hourly rate is higher than the applicable hourly rate for the Operator-in-Training classification. The Y- rating shall begin with the effective date of the new classification and continue for eighteen(18) months. The employee must obtain a Grade I Plant Operator certificate within this eighteen (18)month period. The employee will serve a probationary period for the first" six U6 months bf this eighteen(18)month period. If the employee does not obtain a Grade I Plant Commented[ss4]:updated to align with current Operator certificate or does not pass probation,the employee will be returned to his/her prior probationary period length of six months(housekeeping) position or an equivalent position. 29.2.5. Career Change—Power Plant Operator I:Y-rating will occur when an existing employee is selected as a candidate for a Power Plant Operator I classification when the employee's hourly Local 501 MOU July 1,20196 to June 30, 202249 Page 25 8971551.1 OR040-032 rate is higher than the applicable hourly rate for the Power Plant Operator I classification. The Y-rating shall begin with the effective date of the new classification and continue for twenty-four (24) months. The employee will serve a probationary period for the first kwelve-six(426)L...- Commented[BS5]:Updated to align with current months of this twenty-four(24)month period. If the employee does not pass probation,the probationary period length of six months(housekeeping) employee will be returned to his/her prior position or an equivalent position. 29.3. Classification Adjustment Reovener: The District and the Group agree to reopen this Agreement to discuss the salary range for the Mechanic series and if it should be adjusted consistent with the salary range for Instrumentation/Electrical Technician I and ll. ARTICLE 30. DRIVER'S LICENSE 30.1. Employees who are required by the District to drive must notify their supervisor and the Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2. If an employee whose license is suspended or revoked and is thus unable to perform his/her regular duties and responsibilities notifies the District in a timely fashion,an attempt will be made to place the employee in an equal or lower level position for which he/she is qualified. Placement in the range of the new classification is subject to District's management discretion. 30.3. The District will continue to pay the license renewals and physical examination costs of Class A&B licenses that are specifically required by the District. ARTICLE 31. LAYOFF PROCEDURE 31.1. Nothing herein will be construed to require the District to fill vacant,budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions in instances involving job restructuring,reorganization or due to lack of work. 31.2. If,in the sole discretion of District's management,personnel reductions are necessary,layoff order and recall lists will be developed based upon job classification,priority of function,job performance, individual qualifications and seniority. The Local 501 and employees subject to lay off will be provided with at least two(2)weeks notification in writing whenever possible. 31.3. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such request must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes will be unchanged,except that it may not exceed the top of the range for the lower level classification. 31.4. Recall lists will be developed for all classifications experiencing personnel reductions,and will be maintained for a period of two(2)years from the date of layoff. Individuals will be placed on the list in the inverse order of layoff,so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists,an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five(5)days,or the offer will be made to the next person on the list. An individual who either does not respond or refuses three(3)consecutive offers will have his/her name removed from the list. 31.5. All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address,or where they may be contacted. Local 501 MOU July 1,20196 to June 30, 202249 Page 26 8971551.1 OR040-032 ARTICLE 32. LIGHT DUTY 32.1. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District.Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. MEDICAL EXAMINATION 33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers his/her own health or safety,or that of others,the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision will be conducted on District's time and at District's expense. An employee may submit an independent medical opinion regarding his/her condition and addressing his/her ability to competently perform the duties of the position. This information will be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. MILEAGE ALLOWANCE 34.1. Approved use of a personal vehicle for District business will be reimbursed at the current IRS rate. ARTICLE 35. ACTING PAY 35.1. Employees who are assigned by District's management to perform the duties of a budgeted position at a higher level for a period of at least forty(40)consecutive hours in a pay period will be eligible for a one(1)step salary increase,or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with hour forty-one(41)and continues until the assignment ends or the six(6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted.Requests for acting pay require the pre-approval of the employee's Department Director and the Director of Human Resources,or designee(s). The forty(40)hour eligibility period may be waived at the discretion of the General Manager. 35.2. Substitution Pay 35.2.1. Employees in the Operations and Maintenance Departments who are assigned by District's management to perform the duties of an absent Supervisor shall be eligible for Substitution Pay which shall begin with the first hour of assignment. 35.3. Operations 35.3.1. If a Lead Plant Operator or Senior Plant Operator is assigned to perform the work of an Operations Supervisor because of the absence of the regularly assigned Operations Supervisor and the unavailability of an alternate Operations Supervisor for an entire shift,the Lead Plant Operator or Senior Plant Operator will be paid equal to a one(1)step salary increase or the first step of the Operations Supervisor pay range,whichever is greater. 35.4. Maintenance 35.4.1. If an employee in any of the "Lead" classifications is assigned to perform the work of a Maintenance Supervisor because of the absence of the regularly assigned Maintenance Supervisor and the unavailability of an alternate Maintenance Supervisorfor a period of at least Local 501 MOU July 1,20196 to June 30, 202249 Page 27 8971551.1 OR040-032 two(2)weeks,the"Lead"worker will be paid equal to a one step salary increase or the first step of the Maintenance Supervisor pay range,whichever is greater. ARTICLE 36. PERFORMANCE REVIEWS (This Article intentionally left blank.Information related to performance reviews is included in Article 13.) ARTICLE 37. PERSONNEL FILES 37.1. Employees have the right to inspect their Personnel File in the Human Resources Department during the normal office hours of the Human Resources Department by appointment. Employees who wish to correct allegedly erroneous information in their file,or request that items related to disciplinary matters be removed after the indicated time period has elapsed,should submit a request in writing to the Director of Human Resources,or designee. It is the responsibility of each employee to keep the personal information in his/her file current,including home address,telephone number and person to contact in an emergency. ARTICLE 38. BULLETIN BOARDS 38.1. The Local 501 may use the bulletin boards located at Plant 1 (10844 Ellis Avenue,Fountain Valley, CA 92708)and Plant 2(22212 Brookhurst Street,Huntington Beach,CA 92646)which are designated for use by employee groups to post notices to the District employees provided that: (a) no controversial matter which is critical or derogatory of the District,its employees,officers or Directors may be posted;(b)nothing posted by the District may be removed;(c)the Local 501 will remove its notices after a reasonable length of time;and(d)only a reasonable number of notices will be posted. ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1. A maximum of six(6)employees covered by this Agreement and appointed by the Local 501 will be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time will not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2. The Local 501 will provide the Director of Human Resources,or designee,with the names of employees requiring meet and confer release time in advance of the meet and confer process. Release time will be limited exclusively to the six(6)employees. The release time will be granted provided that the needs of the District permit the time away from assigned work. ARTICLE 40. USE OF DISTRICT FACILITIES 40.1. District facilities may be used by the Local 501 with prior notice to the Director of Human Resources,or designee,for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations. The Local 501 agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. SCOPE OF BARGAINING 41.1. The District and Local 501 acknowledge that during the negotiations which resulted in this Agreement,each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation.Therefore,the District and Local Local 501 MOU July 1,20196 to June 30, 20224-9 Page 28 8971551.1 OR040-032 501,for the term of this Agreement,except as otherwise provided herein,each voluntarily and unqualifiedly waive the right,and each agrees that the other will not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. IMPASSE PROCEDURES 42.1. If either the District or Local 501 declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting,together with a statement of its position on all issues. An impasse meeting will be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.2. Review the position of the parties in a final effort to reach agreement on a memoranda of understanding,and 42.3. If the impasse is not resolved,to discuss the immediate utilization of impasse procedures outlined herein. 42.4. Impasse procedures are: 42.4.1. Mediation: If the parties mutually agree to submit the dispute to the State Mediation and Conciliation Service all mediation proceedings will be private and as soon as practicable. The mediator will make no public recommendation, nor take any public position at any time concerning the issues. 42.4.2. Fact-Finding: Whether the parties submit the dispute to mediation or not, Local 501 may request that the parties'differences be submitted to a factfinding panel as soon as practicable. The cost of a fact finder and other mutually incurred costs will be mutually shared by the District and Local 501. 42.4.3. Board Actions: If the parties fail to resolve the impasse,the dispute will be sent to the District's Board of Directors for resolution. Each party will submit its written proposal on all issues to the Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse will be final and binding. ARTICLE 43. SEVERABILITY 43.1. Notwithstanding any other provisions in this Agreement,in the event that any Article,Section or Subsection of this Agreement will be declared invalid by any court or by any State or Federal law or regulation,or should a decision by any court or any State or Federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District,the District and Local 501 will meet and confer on the affected Article,Section or Subsection. In such event,all other Articles,Sections or Subsections of this Agreement not affected will continue in full force and effect. ARTICLE 44. UNIFORMS 44.1. The District will provide and maintain twelve(12)uniform pants and shirts,which may include the name of the employee and District's seal,at no cost to appropriate personnel. 44.2. The District will also provide each field employee with one(1)jacket. The District will provide for the cleaning of the jacket,and will determine when the jacket needs to be replaced. Local 501 MOU July 1,20196 to June 30, 202249 Page 29 8971551.1 OR040-032 44.3. District's management may establish specific appearance guidelines. All employees who are issued uniforms must wear them during the performance of their regular duties. Failure to wear required clothing,shoes and safety equipment may be cause for disciplinary action. 44.4. Employee's covered by this agreement shall receive a safety boot allowance in the amount of$225 anaaaNyat the beginning of each fiscal year. ARTICLE 45. SUBSTANCE ABUSE POLICY 45.1. The District's Drug and Alcohol Policy will apply to all unit members.The District may adopt or implement rules,regulations and policies to be in compliance with federal and state laws.In such cases,notification will be provided to the bargaining unit prior to implementation. 45.2. Department of Transportation(DOT)Regulations 45.2.1. Every driverwho operates a commercial motor vehicle in interstate or intrastate commerce,and is subject to the commercial driver's license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3. District's Substance Abuse Policy: 45.3.1. Any employee may be subject to discipline,up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. DUES DEDUCTIONS 46.1. The District will deduct from each regular paycheck and remit to Local 501 the dues,initiation fees and assessments 'RG!ud'.,^A,.,.^,..•ehep ^^i^tedl sere^^fees „ngieu—^.,^,,,_1:---,for each Commented[BS6]:Removed this language to align with _.. employee who authorizes such deduction in writing. Such authorizations must be filed by the end of Article 47 below(housekeeping) the pay period prior to the period for which the deduction is requested. 46.2. The District will provide the Local 501 a quarterly list of the names of employees for whom it has made deductions,the names of new employees,and the names of employees who have terminated. ARTICLE 47. Ar_E.htry SHOP-UNION DUES 47.1. Legislative Authority 47.1.1. The parties mutually understand and agree that in accordance with California Government Code Sections 3500, et.seq., all full-time Unit employees represented by the International Union of Operating Engineers,Local 501(hereinafter"Union")have the right to join or not join the Union. u,,..•^.•^. the^ arAm^^t of a.I^^^l„A,.^ •et ep"re ^s that as ^^a;t,^^^-;tgnd;;rd initiation fee,periodic dues and general assesq.m,-ntq nf tht-I In*A 47.2. Union Dues/&ePA, Pees 47.2.1. The Human Resources Department shall provide all current employees and any employees hired thereafter with an ai ither+zation notice advising them that the District has entered into a memorandum of understanding n n^^^^., &hG ^^.^^..,^^t with the Union, and that all Local 501 MOU July 1,20196 to June 30, 202249 Page 30 8971551.1 OR040-032 employees within the bargaining unit are subject to the Agreement m st either join the I mien pay a service fee to the Union,or execute a written declaration claiming a religious exemption payroll deduction of I Inmon dm— or a service fee, or a charitable contribution equal to the sc�R.r GLz fao. Said ernp!Gyees shall have fourteeR(14)GaleRdar days from the date they reGeive the ferm to fully a n„te it anal Fet„Fn it to the Human Rese„Fnes nenaFrmant 47.2.2. The Union shall submit to the District a certified list of employees of whom to deduct monthly union dues from. If an employee's membership status changes,the Union shall notify the District via amendment to the certified list. If the form is not nemnlete.d n eFly and ret„Fnpd Within fo„Fteen (14) nalen.daF .days the Dint.int shall AnrnFnPnAA And nentin„e a Fell The effective date of Union dues,service fee or nhar'tahle contribution shall begin no later than the first full pay period after receipt of the authorization formcertified list from the Union. The monetary amount of union dues shall be set by the Union. In the event of a change to union dues,the Union shall notify the District of the adjusted amount. 47 2.- The employee's earnings must be sufficient after the other legal and required deductions are made to cover the amount of the dues or fees When an employee is in a non-pay status for an entire pay period,no withholding will be made to cover the pay period from future earnings. In the case of an employee in a non-pay status only during part of the pay period, whose salary is not sufficient to cover the full withholding,no deduction shall be made. In the case of an employee who is receiving catastrophic leave benefits during a pay period, no deductions shall be made. In this connection,all other legal and required deductions(including health care and insurance deductions)have priority over Union dues and services fees. Relinio,s Cvemnt•n ARY employee whe is a member of a bGRa fide religion, body, or seGt that has histerigally held GGRGGieRtiGUS support aRy publiG employee eFgaRizatien as R PmnrlM(3n Gf BMPIOYMeRt. The employee may be required,'R lie periodic dues,initiation fees,or Agency Shop fees,to pay sums equal to the dues,initiation fees,or Agency Shop the-LJR'OR. thp Union within fourteen(14)calendar days of receipt by the District. The Union qh;;I1 have fourteen(14)calen days after receipt of a request for religious exemption to challenge any exemption granted by the District.-4f challenged,the deduction to the charity of the employee's choice shall commence but shall b,-. h,-.Id i-.-;rroW pending resolution of the challenge ReS61SSIGn employees in the Unit covered by memorand.-Urnrl of understanding,provided that: 0 employees in the I Init. The.rote is by s ret ballet he rnere than ene(1)vote takeR duriRg that term. NE)twithstandiRg the above,the DiStFiGt and the Union may negotiate,and by mutual agreement provide for,an alternative procedure or procedures regarding a vote on an Agency Shop agreement. Local 501 MOU July 1,20196 to June 30, 202249 Page 31 8971551.1 OR040-032 47 2 447.2.3. If a vote"i approved by Unit members during the term of a GurFeRt MOU the Union agrees not to petition for or seek Agency Shop status for the ri-.m;;0ndPr Afthe $wmnt' --M01-. 47.3. Reserfty within sixty(60)days after the end of its fiscal year,a detailed written financial report thereoffn the form of a balance sheet and a operatio statement certified as to accuracy by its president and treasurer or corresponding principal officer,or by a certified public aGG0untant-. An employee organization required to file finanGial reports under the Labor Managemel# DosdAs„re Ant of 1959 c Rg nlo..ees n e.d by this PF9Vi6iGR, eF pequiFed to file 47-4 47.3. Indemnification 47 4 1 47.3.1. The Union shall indemnify, defend and hold the District harmless against any liability arising from any claims,demands,or other action relating to the District's deduction of Union Dues ,including claims relating to the Union's use of monies collected under these provisions. The District reserves the right to select and direct legal counsel in the case of any challenge to the District's compliance with the Shop fee eduction of Union Dues, and the Union agrees to pay any attorney,arbitrator or court fees related thereto. ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES 48.1. During the term of this Memorandum,or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties,the District agrees it shall not lockout employees in this Unit,and Local 501 agrees that it shall neither advocate,encourage or participate in any strike,including sympathy strike,or work stoppages,nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. SHIFT CHANGES 49.1. The shift change provision is intended to provide an opportunity for employees to bid for open positions based on their job knowledge,experience and seniority. An open position is considered an unencumbered position,or vacancy,resulting from a transfer,promotion,separation,or retirement. Shift changes will be handled on the basis of seniority except when the District can demonstrate a business necessity. 49.2. Relief Operator 49.2.1. When Plant Operators,Senior Plant Operators or Power Plant Operator series are assigned to Relief Operator positions,they will be entitled to$1.75 per hour premium. 49.2.2. Except in emergencies,an employee will be notified of a change in his/her work schedule at least forty-eight(48)hours in advance of such change,preferably seven(7)calendar days in advance of such change. In the event that notice is under forty-eight(48)hours,management will first try to fill vacancy from the overtime list. Failure to fill from the overtime list will result in payment equivalent to call back pay in addition to any pay received from the shift worked for the Relief Operator. Local 501 MOU July 1,20196 to June 30, 202249 Page 32 8971551.1 OR040-032 49.2.3. It will be the intent of Management that relief employees will receive two(2)consecutive days off and will only be subject to split days off when schedule changes occur. 49.3. Shift change-bidding procedure 49.3.1. The District will mail(e-mail is acceptable)a Shift Change Request Form to employees in appropriate classifications every six(6)months. Any employee who wishes to be assigned to the same or a different shift,and who is qualified for that shift,may indicate his/her preference for reassignment on the Shift Change Request Form.The Shift Change Request Form must be returned within thirty(30)days for an employee to be placed on a shift bid list. The list of requests will be used for a period of six(6)months to fill vacant positions. A new employee or a promoted employee may request through the Human Resources Department to be added to the current list within two(2)weeks of his/her start date(new employee)or of being notified of the promotion. 49.3.2. When the District intends to fill an open position,the following steps will be followed: 49.3.2.1. The District will notify the most senior employee on the Shift Change Request list of the availability of the open position however, the District may also notify the employee that his/her work location may not be changed in accordance with Section 17.2. The District agrees that it will verbally notify the employee about the plant connected with the shift. 49.3.2.2. Within two(2)business days of the shift change offer,the employee must notify the District in writing(e-mail is acceptable)of his/her decision to accept or reject the position. 49.3.2.3. If the most senior employee rejects the position,the position will be offered to the next most senior employee on the list. 49.3.2.4. The process will be repeated until the position is filled or the list is exhausted. 49.3.3. If an employee declines a shift change offer, or does not notify the Human Resources Department within the two(2)business days,his/her name will remain on the list unless they request in writing to have it removed. An employee who accepts a shift change offer will be notified of the effective date of the shift change within seven(7)business days. 49.3.4. When an employee is awarded a shift bid,the employee shall begin the new shift within 30 days of accepting the bid. 49.4. Requests for urgency transfer 49.4.1. On occasion,an employee may wish to initiate a transfer to a different shift or plant in response to a personal situation beyond his/her immediate control. Management will make a reasonable effort to accommodate such requests, considering the operational needs of the District, in accordance with the following guidelines: 49.4.2. The requirement to work any shift is considered an essential job function. An employee who requests a transfer due to health reasons that are supported by competent medical findings will be considered disabled and an effort will be made to explore reasonable accommodations. If such accommodations cannot be made,or if the accommodation would result in an undue business hardship on the District,the employee will have the option of remaining in the position unless his/her presence would pose a threat to the safety and welfare of others. 49.4.3. Transfer requests for non-medically related reasons will be considered only when the health or well being of the employee or a member of his/her immediate family is involved. In such events,the transfer would normally be of a temporary nature and limited to the duration of the emergency. Local 501 MOU July 1,20196 to June 30, 202249 Page 33 8971551.1 OR040-032 49.4.4. Employees who wish to submit a Request for Transfer must do so in writing to their supervisor. The request should contain sufficient information to allow full consideration of the nature ofthe emergency or medical condition,and include medical documentation. ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1. The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. RESIGNATION 51.1. Voluntary written termination of employment with the District is automatically deemed irrevocable after seventy-two(72)hours from the receipt of the resignation except by approval of the Director of Human Resources,or designee. The District may accept in writing any verbal or written resignation at any time and deem such resignation irrevocable. ARTICLE 52. OPERATOR CERTIFICATION 52.1. All employees assigned to the Lead Plant Operator,Senior Plant Operator,Plant Operator or Operator-in-Training classifications will comply with the certification requirements of Chapter 4,Title 23,Subchapter 14 of the California Administrative Code. Failure to maintain a valid certificate will be grounds for dismissal. This provision will not be subject to the Grievance Procedure. 52.2. The District will notify the Office of Operator Certification in writing within thirty(30)days of a final disciplinary action resulting in suspension,demotion or discharge of a certified operator if the discipline is the result of commission of any of the acts defined as grounds for discipline within the Operator Certification Regulations. 52.3. As a condition of employment,newly hired Operator-in-Training employees who do not possess a Certificate of Competence will apply for an Operator-in-Training Certificate and pay any applicable fee to the State Water Resources Control Board and submit proof of such application to the Human Resources Department within ten(10)business days of employment. Operators-in-Training who do not receive their Grade I Certificate within three(3)years from their date of hire will be released from District's employment. The District agrees to continue its current policy of reimbursing Operations and Maintenance employees for required certifications upon receiving a passing score. Local 501 MOU July 1,20196 to June 30, 202249 Page 34 8971551.1 OR040-032 SIGNATURE PAGE 20196-20221-9 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS,LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE GROUP Executed: LOCAL 501 ORANGE COUNTY SANITATION DISTRICT Deric Barnes,Business Representative Laura Drottz Kalty,LeadGhief Negotiator Thnrngs Thomas Celia Chandler,Director of Human O'Mahar,President Resources Sid DownellEd and GuFly,Business MaRage•� Laura Maravilla,Human Resources&Risk Steward Manager ARdFe w Nay,PF*R 'pal u,,,,aR Erik Stratmoen ,Steward Andrew Nau,Human Resources Supervisor Laura Mara•FIh Human Resources&Risk Jason Biedermann,Steward jaRiRe Agu4wThys DeVries,Priasipai SepierPrincipal Human Resources Analyst Luis Gasca,Steward LayFie K!iRWStephanie Barron,Senior Human Resources Analyst Gilbert Barela ergo^M8RGGGai,Steward Aaron Suarez,Steward Aaron Suarez,Steward Local 501 MOU July 1,20196 to June 30,20224-9 Page 35 8971551.1 OR040-032 i i Local 501 MOU July 1,20196 to June 30,2022a 9 Page 36 8971551.1 OR040-032 EXHIBIT A LOCAL 501 -OPERATIONS AND MAINTENANCE UNIT Effective Effective Effective Pay 8-Jul-165-Jul-19 73JuI4720 62-Jul-1821 Classification Grade MIN I MAX MIN MAX MIN MAX Automotive/Heavy Equipmt Assistant L0053 $24.6926 $39,9932 $25-227 $39-9933 $2&492 $31-8a34. .97 .78 .78 .76 8.61 77 Automotive/HeavyE ui mtTechnician LOC67 $348738 $42-3946 $359239 $43-6 7 $37904 $44.98849. q p .11 .33 .25 .72 0.43 15 Control Center TeshaisiaaOperator L BL $279432 $33-9438 $28.7533 $34.9640 $29- 3 $36:e141. OC60 . 88 .99 .04 .16 4.03 36 Electrical Technician I LOC65 $33.2036 $40- 4 $34-2e3� $*4-- 5 $3&243 $42.saas. .29 .09 .38 .41 8.50 77 Electrical Technician 11 LOC71 $39-4942 $46:7751 $39.G3a3 $494752 $40 924 $49-.6954. .04 .12 .30 .65 4.60 23 Facilities Worker/Builder LOC62 $30- 33 $374740 $34-7734 $3"942 $32723 $39.76434 .70 .95 .71 .18 5.75 45 Facilities Worker/Painter LOC62 $3"433 $37a74o $31-.7731 $3&5942 $32 z23 $39- 3. .70 .95 .71 .18 5.75 45 Instrumentation Technician I LOC65 36.29$3 44.09$4 JL7.38$3 45.41$4 38.50$ 46.77$4 3.-29 0-35 4.20 436 3522 . 2;44 4204$3 1.12$4 o$ 5$4 60$ 45 3 2Instrumentation Technician II LOC71 9.48 6.77 9:63 947 49.82 &63 Lead Electrical Technician LOC75 $42-5946 $54E456 $437947 $534958 $45wQ $54- 59. .44 .43 .83 .12 9.26 86 Lead Facilities Worker LOC66 $340437 $41-.36a5 $35-0638 $42- 6 $36443 $43.89a7. .19 .12 .31 .57 9.46 97 Lead Instrumentation Technician LOC75 45.44$4 56.43$5 47.83$4 58.12$5 49.26$ 59.86$5 239 4" 379 349 4509 479 Lead Mechanic LOC71 42.04$3 51.12$4 a3.30$3 52.65$4 4a.60$ 54.23$4 9-.48 6:77 9:63 94-7 40 R2 9.63 Lead Plant Operator LOC75 46.44$4 156.43$5 47.83$4 IM.12$6 49.26$ 59.86$5 2430 4-.64 3:79 349 46.09 479 Lead Power Plant Operator LOC75 as.aa$a ss.a3$5 a7.a3$a ss.12$5 a9.2s$ ss.ss$5 238 4.64 3a9 344 49 nQ 47-9 Lead Welder/Fabricator LOC71 42.04U s1.12$4 43.30$3 152.65$4 44.50$ 54.23$4 9.49 6:77 9.43 947 4092 9.63 Machinist LOC68 $35:7339 $43-4447 $36.9040 $447448 $27904 $4633950. .04 .46 .21 .88 1.42 35 LQG75 $42.50 $51-.64 $43.79 $5349 $45.09 $54W79 Maintenance Worker LOC60 $29-3632 $356838 $302423 $W6 Q $at453 $37,8541. .08 .99 .04 .16 4.03 36 Mechanic LOC61 $ 3z $365439 $30&733 $37�a41 $atQ 3 $39.774z. .85 .93 .85 .13 4.87 36 Mobile Crane Operator LOC67 38.11$3 46.33$4 39.25$3 47.72$4 40.43$ 49.15$4 497 2. 9 5.92 3.66 2700 4." Operator-In-Training L0058 $275430 $33-9437 $29-7531 $34-9638 $29,643 $36.A439. .50 .09 .42 .20 2.36 35 Plant Operator LOC66 37.19$3 45.12$4 38.31$3 46.57$4 39.46$ 47.97$4 p 404 4.b6 5.06 260 2641 399 Power Plant Operator I LOC66 37.19" 45.12$4 38.31$3 46.57$4 39.46$ 47.97$4 404 4-.W 5-06 2- 9 2611 3R9 Power Plant Operator 11 LOC71 42.04$3 fit 12$4 43.30$3 52.65$4 44.50$ 54.23$4 9.49 &.77 9:63 947 49,92 9.63 Reliability Maintenance Technician LOC75 46.44$4 156.43$5 a7.83$4 IM135 49.26$ 59.86$5 2430 1-64 3:79 344 46.09 479 Senior Mechanic LOC67 38.11$3 46.33$4 39.25$3 47.72$4 40.43$ 49.15$4 487 2-39 5A2 3s6 37.00 4.99 Senior Plant Operator LOC71 42.04U 51.12$4 43.30$3 IM2.65$4 44.60$ a54.23$4 Local 501 MOU July 1,20196 to June 30,202249 Page 37 8971551.1 OR040-032 &.48 5.7Z 9433 8aZ 40,82 9.63 Welder/Fabricator L CC67 38.11$3 46.33$4 39.25$3 47.72$4 40.43$ 49.15$4 4$7 2-.n 5.92 3-.w 37,00 4,98 Local 501 MOU July 1,20196 to June 30,2022a 9 Page 38 8971551.1 OR040-032 STEERING COMMITTEE Meeting Date To Bd. of Dir. 08/28/19 08/28/19 AGENDA REPORT Item Number Item Number 8 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: ELIMINATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) AND NET PENSION LIABILITY (NPL) WITHIN THE ORANGE COUNTY EMPLOYEES' RETIREMENT SYSTEM GENERAL MANAGER'S RECOMMENDATION Direct staff to pay off the following amounts in the Orange County Sanitation District's defined pension plan administered by the Orange County Employees' Retirement System (OCERS) in an amount not to exceed $38 million: • Unfunded Actuarial Accrued Liability(UAAL) in the amount of$9 million for pension benefits • Net Pension Liability (NPL) in the amount of $29 million for deferred investment loss BACKGROUND As of July 1 , 2014, the Orange County Sanitation District(Sanitation District) had an UAAL in its defined pension plan administered by OCERS of $194 million. The Sanitation District made advanced payments to eliminate the UAAL and maintain a fully funded plan. In 2017, the Sanitation District had a credit with OCERS. However, for the year ended December 31 , 2018, OCERS' actuarial assumed rate of return was 7.00 percent, but actual investment returns were a loss of approximately two percent. The Sanitation District's allocated share of this shortfall resulted in a UAAL and NPL of $9 million and $29 million, respectively. Over the last 20 years, OCERS' annual rate of return exceeded the Sanitation District's 70% of the time. Due to their ability to invest in the equity market, staff believes that, over the long-term, OCERS will consistently outperform the Sanitation District's return on investments. Therefore, staff recommends reducing its investment portfolio to fund its current total UAAL and NPL of approximately $38 million. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Resolution No. OCSD 18-23 — Sanitation District's adopted Investment Policy - prudent investor standard Page 1 of 2 PROBLEM The return on investments by OCERS was less than planned within its actuarial assumptions, thereby creating a new Sanitation District UAAL ($9 million) and NPL ($29 million) for the OCERS year-ended December 31, 2018 of approximately $38 million. The Sanitation District could amortize the payment of this $38 million UAAL and NPL over a long period of time, such as 10 to 20 years; however, in doing so, the Sanitation District would have to make up the anticipated returns these funds would be earning by OCERS over this repayment period. By paying these funds off now, the Sanitation District will forgo future anticipated interest expense of approximately 7.00% a year. PROPOSED SOLUTION Direct staff to pay off the Sanitation District's total UAAL and NPL estimated at$38 million. TIMING CONCERNS As soon as the UAAL and NPL payoff is made, the annual 7.00% interest rate applied against these funds will cease. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will have to pay off its UAAL and NPL through a 10-to-20-year amortization scheduled at a rate of 7.00%, far below its ability to produce returns on its investment portfolio. PRIOR COMMITTEE/BOARD ACTIONS October 2016 - Board approved a $40 million paydown of the UAAL with OCERS. May 2015 - Board approved the FY 2015-16 Budget Update, which included a line item for the pay down of $50 million in UAAL with OCERS. July 2014 - Board action approved $125 million pay down of UAAL with OCERS. FINANCIAL CONSIDERATIONS Payment of the Unfunded Actuarial Accrued Liability (UAAL) and Net Pension Liability (NPL) will result in the reduction of the Sanitation District reserves by $38 million. It is anticipated that as OCERS' actual investment returns improve, most, if not all, of these funds will be recouped as a credit against future pension expenditures. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 2 of 2 RITA WOODRUFF, SPRADLIN&SMART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Steering Committee desires to hold a closed session on August 28, 2019 for the purpose of conferring with its legal counsel regarding anticipated litigation. Existing facts and circumstances reflect a significant exposure to litigation against the District. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(2). The facts and circumstances are as follows: on July 18, 2019 former District employee Jose Cruz filed a claim against the District alleging wrongful termination, retaliation, and gender discrimination. Respectfully submitted, By _;4/4' A,,� BradI4 R. Hogin, eneral Counsel 1434475.1 RITA WOODRUFF, SPRADLIN&SMART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Steering Committee will hold a closed session on August 28, 2019 for the purpose of conferring with its labor negotiators to discuss negotiations with the Confidential Group: Assistant Clerk of the Board, Clerk of the Board, Human Resources Analyst, Human Resources Assistant, Human Resources Supervisor, Principal HR Analyst, Secretary to the General Manager, and Senior Human Resources Analyst. The District's labor negotiators are James Herberg, Lorenzo Tyner and Celia Chandler. The closed session will be held pursuant to authority of California Government Code Section 54957.6. Respect submitted, By. 4- Bradley It. Hogin, Go6eral Counsel 1434468.1 RITA WOODRUFF, SPRADLIN&$MART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Steering Committee will hold a closed session on August 28, 2019 for the purpose of conferring with its labor negotiators to discuss negotiations with the Managers Group: Administration Manager, Controller, Engineering Manager, Environmental Laboratory& Ocean Monitoring Manager, Human Resources &Risk Manager, IT Systems & Operations Manager, Maintenance Manager, Operations Manager, and Purchasing and Contracts Manager. The District's labor negotiators are James Herberg, Lorenzo Tyner and Celia Chandler. The closed session will be held pursuant to authority of California Government Code Section 54957.6. Respect submitted, By. 4- Bradley It. Hogin, Go6eral Counsel 1434469.1 RITA WOODRUFF, SPRADLIN&$MART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: August 20, 2019 RE: Closed Session Items The Steering Committee will hold a closed session on August 28, 2019 for the purpose of conferring with its labor negotiators to discuss negotiations with the Executive Managers Group: Assistant General Manager, Director of Engineering, Director of Environmental Services, and Director of Human Resources. The District's labor negotiators are James Herberg, Lorenzo Tyner and Celia Chandler. The closed session will be held pursuant to authority of California Government Code Section 54957.6. Respect submitted, By. 4- Bradley It Hogin, Gcderal Counsel 1434471.1 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS Association of California Local Agency Formation Regional Water Quality ACWA Water Agencies LAFCO Commission RWQCB Control Board APWA American Public Works LOS Level Of Service SARFPA Santa Ana River Flood Association Protection Agency AQMD Air Quality Management MGD Million Gallons Per Day SARI Santa Ana River District Interceptor ASCE American Society of Civil MOU Memorandum of SARWQCB Santa Ana Regional Water Engineers Understanding Quality Control Board BOD Biochemical Oxygen Demand NACWA National Association of Clean SAWPA Santa Ana Watershed Water Agencies Project Authority CARB California Air Resources NEPA National Environmental SCADA Supervisory Control And Board Policy Act Data Acquisition California Association of Non-Governmental Southern California CASA Sanitation Agencies NGOs Organizations SCAP Alliance of Publicly Owned Treatment Works CCTV Closed Circuit Television NPDES National Pollutant Discharge SCAQMD South Coast Air Quality Elimination System Management District CEQA California Environmental NWRI National Water Research SOCWA South Orange County Quality Act Institute Wastewater Authority CIP Capital Improvement O& M Operations&Maintenance SRF Clean Water State Program Revolving Fund CRWQCB California Regional Water OCCOG Orange County Council of SSMP Sewer System Quality Control Board Governments Management Plan CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow Agency CWEA California Water Environment OCSD Orange County Sanitation SWRCB State Water Resources Association District Control Board EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids EMT Executive Management Team OOBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EPA US Environmental Protection OSHA Occupational Safety and TSS Total Suspended Solids Agency Health Administration Professional Waste Discharge FOG Fats, Oils, and Grease PCSA Consultant/Construction WDR Requirements Services Agreement gpd gallons per day PDSA Professional Design Services WEF Water Environment Agreement Federation GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERF Water Environment& System Works Reuse Foundation ICS Incident Command System ppm parts per million WIFIA Water Infrastructure Finance and Innovation Act Integrated Emergency Professional Services Water Infrastructure IERP Response Plan PSA Agreement WIIN Improvements for the Nation Act JPA Joint Powers Authority RFP Request For Proposal WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) — The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) —The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS)—Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP)—An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW)—A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non- reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. SANITARY SEWER — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT — Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE—Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater. TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER—Any water that enters the sanitary sewer. WATERSHED—A land area from which water drains to a particular water body. The Orange County Sanitation District's service area is in the Santa Ana River Watershed.