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HomeMy WebLinkAbout98.ONLINE 07-26-2017 Steering Meeting Item 3 Attachment D - MOUs.pdf MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501 FOR THE OPERATIONS AND MAINTENANCE UNIT November 29, 2002 through June 30, 2007 TABLE OF CONTENTS ARTICLE1. - RECOGNITION................................................................................................................................1 ARTICLE2. -DURATION.......................................................................................................................................1 ARTICLE 3. -SUCCESSOR AGREEMENT...........................................................................................................1 ARTICLE 4.-LOCAL 501 ACCESS......................................................................................................................1 ARTICLE 5.-LOCAL 501 RIGHTS........................................................................................................................1 ARTICLE 6.-DISTRICT RIGHTS..........................................................................................................................2 ARTICLE 7. -NONDISCRIMINATION IN EMPLOYMENT....................................................................................2 ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT.........................................................................................3 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 .....................................................................5 ARTICLE 14.-SEVERENCE PAY.........................................................................................................................6 ARTICLE 15.- DEFERRED COMPENSATION.....................................................................................................7 ARTICLE 16.- HOLIDAYS.....................................................................................................................................7 ARTICLE 17.- HOURS OF WORK........................................................................................................................8 OPERATIONS.........................................................................................................................................................................8 MAINTENANCE.....................................................................................................................................................................8 ARTICLE 18.-CALL-BACK PAY..........................................................................................................................9 ARTICLE19.-STANDBY PAY..............................................................................................................................9 ARTICLE20.-INSURANCE..................................................................................................................................9 A. MEDICAL.....................................................................................................................................................................9 B. GROUP INSURANCE PREMN S...................................................................................................................................9 C. LIFE INSURANCE.........................................................................................................................................................9 D. SHORT TERM DiSABILITY............................................................................................................................................9 E. LONG TERM DISABILITY.............................................................................................................................................9 F. DENTAL....................................................................................................................................................................10 G. VISION......................................................................................................................................................................10 H. RETIRINGEMPLO=..............................................................................................................................................10 ARTICLE 21.- REIMBURSEMENT ACCOUNT................................................................................................... 10 MEDICAL CARE REIMBURSEMENT ACCOUNT.....................................................................................................................10 DEPENDENT CARE ASSISTANCE ACCOUNT.........................................................................................................................10 ARTICLE 22.-OVERTIME................................................................................................................................... 10 ARTICLE 23.- PROBATIONARY PERIOD......................................................................................................... 10 Pagel ARTICLE 24. - PROMOTIONS............................................................................................................................. 11 ARTICLE 25. - RETIREMENT.............................................................................................................................. 11 ARTICLE 26. -SHIFT DIFFERENTIAL................................................................................................................ 11 ARTICLE 27.- LEAVE-OF-ABSENCE WITH PAY.............................................................................................. 11 PERSONALLEAVE.........................................................................................................................................................11 ScheduledTime Off.......................................................................................................................................................12 Unscheduled Time Off 12 Personal Leave and Workers'Compensation Leave 12 PersonalLeave Payoff..................................................................................................................................................13 MaximumAccrual.........................................................................................................................................................13 SickLeave Bank............................................................................................................................................................13 JURYDUTY LEAVE........................................................................................................................................................13 WITNESSLEAVE............................................................................................................................................................13 MILITARYLEAVE..........................................................................................................................................................13 BEREAVEMENTLEAVE..............................................................................................................................................-14 ARTICLE 28.- LEAVE-OF-ABSENCE WITHOUT PAY...................................................................................... 14 SUBSTITUTION OF PAID LEAVE.................................................................................................................................14 PERMISSIBLE USES........................................................................................................................................................14 FMLALeave..................................................................................................................................................................14 CFRALeave..................................................................................................................................................................14 GENERALPROVISIONS.................................................................................................................................................14 Requests for FMLA and CFRALeave 14 Medical Certification 14 Medicaland Dental Premiums......................................................................................................................................14 Reinstatement................................................................................................................................................................14 Failureto Return to Work.............................................................................................................................................15 Bridgeof Service...........................................................................................................................................................15 DistrictEmployment of5pouses....................................................................................................................................15 Six-month Limit on Unpaid Leavesof-absence.............................................................................................................15 GENERALLEAVE...........................................................................................................................................................15 RETURN TO WORK POLICY FORNON-WORK-RELATED LEAVE.........................................................................15 COMPLIANCE WITH LAW.............................................................................................................................................15 ARTICLE 29.-CLASSIFICATION STUDIES....................................................................................................... 15 ARTICLE 30.. DRIVER'S LICENSE.................................................................................................................... 16 ARTICLE 31.- LAYOFF PROCEDURE............................................................................................................... 17 ARTICLE 32.- LIGHT DUTY................................................................................................................................ 17 ARTICLE 33.- MEDICAL EXAMINATION........................................................................................................... 17 ARTICLE 34.. MILEAGE ALLOWANCE............................................................................................................. 17 ARTICLE 35.-ACTING PAY............................................................................................................................... 17 ARTICLE 36.- PERFORMANCE REVIEWS........................................................................................................ 18 ARTICLE 37.- PERSONNEL FILES.................................................................................................................... 18 ARTICLE 38.. BULLETIN BOARDS................................................................................................................... 18 ARTICLE 39.- RELEASE TIME FOR MEET AND CONFER SESSIONS........................................................... 18 ARTICLE 40.- USE OF DISTRICTS' FACILITIES............................................................................................... 18 Page ii ARTICLE 41. -SCOPE OF BARGAINING........................................................................................................... 19 ARTICLE 42. - IMPASSE PROCEDURES........................................................................................................... 19 ARTICLE 43.-SEVERABILITY........................................................................................................................... 19 ARTICLE 44.- UNIFORMS.................................................................................................................................. 19 ARTICLE 45.-SUBSTANCE ABUSE POLICY................................................................................................... 19 DEPARTMENT OF TRANSPORTATION REGULATIONS............. .....................................................................19 ARTICLE 46.- DUES DEDUCTIONS...................................................................................................................20 ARTICLE 47.-AGENCY SHOP...........................................................................................................................20 ARTICLE 48.- PEACEFUL RESOLUTION OF DISPUTES................................................................................22 ARTICLE 49.-SHIFT CHANGES........................................................................................................................22 RELIEFOPERATOR..............................................................................................................................................................22 SHIFT CHANGE-BIDDING PROCEDURE..................................................................................................................................22 REQUESTS FOR URGENCY TRANSFER...................................................................................................................................22 ARTICLE 50.-WORKPLACE VIOLENCE AND WEAPONS POLICY................................................................23 ARTICLE51. - RESIGNATION.............................................................................................................................23 ARTICLE 52. -OPERATOR CERTIFICATION....................................................................................................23 SIGNATURE PAGE....................................................................................ERROR! BOOKMARK NOT DEFINED. Page iii 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, at 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 Loral 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 This Agreement, effective November 29, 2002 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. 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 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 30,2007. This Agreement will act as a bar to the raising of the question of representation during its term, except that the question of representation may be raised during the period between sixty and ninety days prior to its expiration. ARTICLE 3. - SUCCESSOR AGREEMENT Each party will submit in writing its initial proposal for a successor agreement at least sixty days prior to the expiration date of this Agreement. ARTICLE 4. - LOCAL 501 ACCESS Local 501 representative will 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 Local 501 representative must obtain authorization for each visit in advance from the Director of Human Resources or designee. 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 any changes in that list. 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 Loral 501 may designate 14 employees to act as stewards for employees covered by this Agreement. Local 501 will furnish the Director of Human Resources 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. Page 1 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 Except as otherwise specifically provided in this Agreement or applicable laws, the District has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following: 1. To determine the nature and extent of services to be performed, as well as the right to determine and implement its public function and responsibility. 2. To manage all facilities and operations of the District, including the methods, means and personnel by which the District operations are to be conducted. 3. To schedule working hours and assign work. 4. To establish, modify or change work schedules or standards. 5. To direct the working forces, including the right to hire, promote, demote or transfer any employee. 6. To determine the location of all plants and facilities. 7. To determine the layout and the machinery, equipment or materials to be used. 8. To determine processes, techniques, methods and means of all operations, including changes or adjustments of any machinery or equipment. 9. To determine the size and composition of the working force. 10. To determine policy and procedures affecting the selection or training of employees. 11. To establish, assess and implement employee performance standards, including, but not limited to,quality and quantity standards;the assessment of employee performances;and the procedures for said assessment. 12. To control and determine the use and location of District property, material, machinery or equipment. 13. To schedule the operation of and to determine the number and duration of shifts. 14. To determine safety, health and property protection measures. 15. To transfer work from one job to another or from one plant or unit to another. 16. To introduce new, improved or different methods of operations,or to change existing methods. 17. To lay off employees from duty for lack of work or lack of funds. 18. To reprimand, suspend, discharge or otherwise discipline employees for cause. 19. To establish and determine job classifications. 20. To promulgate, modify and enforce work and safety rules and regulations. 21. To take such other and further action as may be necessary to organize and operate the District in the most efficient and economical manner and in the best interest of the public it serves. 22. To contract or subcontract construction, services, maintenance,distribution or any other work with outside public or private entities. 23. Local 501 expressly and specifically agrees that except to the extent that the District rights are expressly limited by the terms of this Agreement, Local 501 waives any and all of its rights to meet and confer on any of the District's rights. If the exercise of these rights affects wages, hours or terms and conditions of employment,the District may act to exercise its rights but will meet and confer on the effects of its actions. 24. To adopt rules, regulations and policies to implement and/or be in compliance with federal and state laws. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. 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 unit without regard to marital status, handicap, medical condition, status as a disabled veteran, age or citizenship. Page 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 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 is not acceptable within District facilities, and may occur only in outside areas not posted as no smoking. ARTICLE 9. - SAFETY It is the duty of the District to provide and maintain a safe place of employment. Loral 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. The District will establish a Safety Committee that will include up to six members of Local 501. The committee's recommendations are advisory. The committee will meet at least quarterly; however,additional meetings may be scheduled by either Loral 501 or the District. ARTICLE 10. - DISCIPLINE AND DISMISSAL 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. 2. Dismissal,for purposes of this Article, is the separation of a non-probationary employee initiated by the District for just cause. 3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand,or written reprimand. 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. 5. The Notice of Intent will contain the following: (1)a description of the disciplinary action intended and the effective dale 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 business days of the date of issuance of the notice. The Notice will also advise the employee of the right to representation. 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 Human Resources policies and procedures. 7. Dismissal will be preceded by at least one 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. 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 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 Page 3 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. 9. Disciplinary action documentation will be placed in an employee's Personnel File in the Human Resources Office. Documentation regarding verbal reprimands and written reprimands may be removed from an employee's personnel file twenty-four months subsequent to the date of the issuance provided that there has been no recurrence of a similar incident during the period. If Human Resources 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 Office for the purpose of showing that progressive discipline has been followed or in support of District proposed discipline. 10. Verbal reprimands, 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. 11. 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, reduction from Step 6 to Step 5 pursuant to Article 13)will not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 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. A grievance may be brought to the attention of the District by an individual employee within the Unit or by the Loral 501. The District may not bring a grievance through this procedure. Grievances brought by two 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. 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 implies business days. Step 1. An employee who has a complaint will attempt to resolve it with his/her immediate supervisor within five days of the occurrence of the event giving rise to the complaint, or within five 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 five days. 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 five 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. 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. The Department Head will respond in writing to the employee within ten days after the date the grievance is received. Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the Director of Human Resources, or designee, for review and written response. The request for formal review must be presented on a form provided by the District within ten 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 Page 4 will be fled with the Director of Human Resources. The Director of Human Resources, or designee,will respond in writing to the employee within ten days after the date the grievance is received. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to the General Manager within ten days from the date the Step 3 finding was issued. The General Manager, or designee,will respond in writing to the employee within fifteen days after the date the grievance is received. The decision of the General Manager is final. 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 Local 501,the Local 501 may designate one 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. 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 Director of Human Resources 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. Resolution may be agreed upon at any stage of the grievance process. However,the Loral 501 will be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 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. 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 days from the date they were notified of the problem. 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 within ten days of receipt of the supervisor's decision. Upon request of either parry, a meeting may be held to define issues and establish remedies sought. the Work Issues Committee, comprised of two management and two union representatives and chaired by the Director of Human Resources, may be convened to cooperatively review and develop recommendations for solution of work issues and problems. The employee raising the issue will be provided a written response within ten days after his/her their 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 is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION Merit Pay Step System Effective November 29, 2002, each pay grade will be divided into 6 steps with an approximate 4.6%difference between each step. Effective November 29, 2002, all active employees as of November 29, 2002 will be placed on the nearest step so that no employee will experience a decrease in his/her hourly pay rate. Employees hired on or before November 29, 2002 will be eligible for a step increase on the following dates for the duration of this contract based on receiving a satisfactory or above performance review rating until they reach step 5. Employees not receiving a satisfactory or above performance review will not be eligible for a merit based salary adjustment. • July 11, 2003 • July 9, 2004 • July 6, 2005 • July 7, 2006 Movement between step 5 to step 6 will be based on a"gatekeeper'factor. • Gatekeeper factor Page 5 Placement at step 6 of the salary range will require receipt of an above average or outstanding performance review on an annual basis. Unit employees who are at step 6 of the range and who do not receive an above average or outstanding performance review will be placed at step 5 of the range and will not be placed at step 6 unless an above average or outstanding performance review is received in the following year. A change from step 6 to step 5 will be reviewed and approved by the Human Resources Director or his/her designee prior to implementation. An employee may appeal the change pursuant to the"appeal process" provided for in the current review procedure for Local 501 employees. Employees hired after November 29, 2002,will be eligible for a step increase based on the following schedule: • Step 1 to 2: First pay period following six(6)months of service • Step 2 to 3: First pay period following one(1)year of service at step 2 • Step 3 to 4: First pay period following one(1)year of service at step 3 • Step 4 to 5: First pay period following one(1)year of service at step 4 • Step 5 to 6: First pay period following one(1)year of service at step 5 Salary Structure Range Adjustment Effective November 29, 2002,the current salary ranges will be increased by 1.24%. Base wages for all active employees as of November 29,2002 will be adjusted by 1.24%. Salary ranges will be reviewed and updated based on the 75' percentile, effective the first pay period after each fiscal year. A market study will be conducted on or about July W of each year utilizing ranges in effect July 15% resulting in the following: • This information will be discussed during a meet and confer process with management and business representatives. • Salary ranges will be adjusted based on the overall average of this market study to the hundredth decimal place, not to exceed a 4.00%annual increase. • Adjustments for the duration of the contract will be as follows: o July 11, 2003 o July 9,2004 o July 8,2005 o July 7, 2006 • Base wages for all active employees as of the above dates will be adjusted accordingly. Classification Pay Grade Adjustment As part of the annual salary structure range adjustment process, each benchmark classification will be reviewed to determine if any individual classifications need to have the pay grade adjusted based on the following criteria: 1. If a pay grade change is agreed upon for a specific classification,the District and Local 501 will review other classifications that are linked to the specific classification (within the unit or comparable classifications in other departments)to maintain the internal integrity of the district-wide salary range structure. In the event that a benchmark classification (and a classification"tied into"a benchmark classification)is five percent(5.0%)or more below the aggregate average of all benchmark classifications, the parties agree to meet and confer with respect to such classifications;the issues to be discussed are additional salary adjustments to maintain the 7r percentile, "vertical"job series relationships, and"horizontal"job classification comparisons. ARTICLE 14. - SEVERENCE PAY Employees are expected to give a minimum of two 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 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: Page 6 1. Full-time, regular employees will be entitled to eight hours pay for each full calendar month of continuous employment not to exceed one-hundred sixty hours pay. 2. Employees in limited term or part-time classifications, probationary employees and employees who are separated for cause, are not eligible for severance pay under any circumstances. ARTICLE 15. - DEFERRED COMPENSATION Employees may participate in the District approved deferred compensation plan subject to all guidelines for participation established by District's management. ARTICLE 16. - HOLIDAYS 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, nine or ten hour shifts, Monday through Friday, will observe the holidays listed in Schedule A. Employees who are assigned to twelve-hour shifts will observe the holidays as listed in Schedule B. Full-time employees shall receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status. 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. Employees that accumulate in excess of fifty hours of Holiday Compensatory Time Off shall be scheduled to take such excess time off or be paid for the excess accumulated Holiday Compensatory Time Off at the convenience of the District. Employees shall also receive overtime pay at the rate of one and one half times their regular hourly rate for all hours actually worked. HOLIDAY 2003 2004 2005 2006 2007 New Year's Day January 1 January 1 December 31 January 2 January 1 Lincoln's Birthday February 12 February 12 February 11 February 13 February 12 President's Day February 17 February 16 February 21 February 20 February 19 Memorial Day May 26 May 31 May 30 May 29 May 28 Independence Day July 4 July 5 July 4 July 4 July 4 Labor Day September 1 September 6 September 5 September 4 September 3 Veteran's Day November 11 November 11 November 11 November 10 November 12 Thanksgiving Day November 27 November 25 November 24 November 23 November 22 Day after Thanksgiving November 28 November 26 November 25 November 24 November 23 Day before Christmas December 24 December 23 December 23 December 25 December 24 Christmas December 25 December 24 December 26 December 26 December 25 Floating Holiday SCHEDULE HOLIDAY 2003 2004 2005 2006 2007 New Year's Day January 1 January 1 January 1 Januaryl January 1 Lincoln's Birthday February 12 February 12 February 12 February 12 February 12 President's Day February 17 February 16 February 21 February 20 February 19 Memorial Day May 26 May 31 May 30 May 29 May 28 Independence Day July 4 Jul 4 July 4 July 4 July 4 Labor Day September 1 September 6 September 5 September 4 September 3 Veteran's Day November 11 November 11 November 11 November 11 November 11 Thanksgiving Day November 27 November25 November24 November 23 November 22 Day after Thanksgiving November 28 November 26 November 25 November 24 November 23 Page 7 Dav before Christmas December 24 December 24 December 24 December 24 December 24 Christmas December25 December25 December25 December25 December25 Floating Holiday " Employees may elect one day during each year as a"Floating Holiday",which new em�rloyees will accrue on the following pro-rata basis their first calendar year of service: 1"quarter hire= 100%; 2n quarter hire=75%; 3 quarter hire= 50%;and 4"quarter hire= 0%. Such day must be used within the year it is accrued. Every effort will be made to grant an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17. - HOURS OF WORK 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),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. 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. Employees will be allowed a fifteen minute cleanup period prior to the end of each work shift,which will include preparation of time cards where required. Employees may not avoid the cleanup period and end their shift before its scheduled ending time. Employees will receive rest periods not to exceed ten minutes no more than twice in an eight or nine hour shift or three times for a shift of more than ten hours. Each shift will contain a minimum thirty-minute meal period for every six 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 hours pay at the overtime rate. Operations For purposes of this Article,the day shift is defined as an assigned work shift of at least seven consecutive hours, between 0600 hours and 1800 hours. The night shift is defined as an assigned work shift of at least seven consecutive hours, between 1800 and 0600 hours. Any employee who declares that an individual hardship exists should submit a request,to be excluded from the 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. Maintenance Maintenance: Except where otherwise provided below, the official workweek for full-time represented personnel in Maintenance will be 40 hours per week. The workweek will consist of a four consecutive day work schedule with ten consecutive daily hours in a workday with a %hour unpaid lunch. 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 a half times the regular rate of pay. 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. Co-Generation: For purposes of this Article,the day shift is defined as an assigned work shift of at least seven consecutive hours, between 1000 hours and 2200 hours. The night shift is defined as an assigned work shift of at least seven consecutive hours, between 2200 and 1000 hours. Page 8 Any employee who declares that an individual hardship exists should submit a request to be excluded from the 12-hour shift to Human Resources. Human Resources will determine if there is a valid employee hardship,on a case-by-case basis, and notify the local 501 bargaining unit representative of the decision. 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 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, 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 will receive a minimum of three hours of call back pay. The three hours minimum,whether or not actually worked,will 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 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 will first be made on a voluntary basis. A volunteer standby list will be established by classification and job location. Standby assignments will 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 will assign standby by job classification and work location from employees who are competent and experienced on a rotational basis. An employee placed on standby will be compensated at the rate of two hundred dollars per week, and will receive Call Back pay when he/she is actually called to work. ARTICLE 20. - INSURANCE In January 2004,the District and Local 501 agree to reopen this Article for the purpose of developing cost containment initiatives in the existing health plans and/or to change insurance carriers. Any changes must be mutually agreed to by the parties. This reopener will not include the District's contribution rate set forth below. The District will provide medical-health insurance coverage through both Health Maintenance Organizations and an indemnity type group health plan, life insurance, and disability insurance for the benefit of full-time employees. All insurance coverage will become effective on the first day of the month following date of hire, regardless of hire dale. An open enrollment period will be held annually in the month of June. A. Medical Regular,full-time employees: The District will contribute 90%of employee only premiums for the HMO medical health plans and will contribute 80%of employee only premiums for the POS medical health plans and 80%for employee +1 dependent and full family premiums. 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 the plan. The new contribution rate will become effective July 1, 2004. B. Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. C. Life Insurance The District will pay the full premium for$50,000 term life insurance on each employee. D. Short Term Disability The District will provide a non-work related, short-term disability indemnity plan that pays up to$490 per week for up to 26 weeks following a fourteen calendar day waiting period. E. Long Term Disability 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 years of service. Page 9 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's paid Long Term Disability may purchase such coverage at their own expense. F. Dental The District will contribute 80%of employee only premiums for dental insurance and will contribute 80%of full family premiums. This new contribution rate will become effective July 1, 2004. G. Vision The District will provide a vision insurance plan for regular,full-time employees and eligible dependents. H. Retiring Employees The District will pay,for employees hired prior to July 1, 1988,two and one-half 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. 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. The District will enter into an agreement with the Orange County Employee Retirement System (OCERS)to implement the retiree medical health premium offset program established by the County of Orange wherein the cost of health premiums are offset by$10 per month for every year of service up to a maximum of 25 years or $250 per month. ARTICLE 21. - REIMBURSEMENT ACCOUNT 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 Office. 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/herself for payment of health care costs not otherwise covered by his/her medical insurance. 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/herself for child care expenses or day rare for a disabled dependent. ARTICLE 22. - OVERTIME 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 40 hours in a seven(7)day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 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 twenty-six weeks 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. Page 10 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 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 on an open or reassignment basis. Whenever the District intends to fill a position by promotion,the District will post the opportunity for a minimum of ten business days. Employees must apply during the period of posting. Notices will be posted on bulletin boards within Plants 1 and 2. A promoted employee will serve a promotional probationary period lasting at least until the first day of the pay period 120-days 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. The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety 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 twenty-six weeks after the effective date of the promotion. 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 The District will continue participation in the Orange County Employees Retirement System,wherein all full-time employees are considered members. The retirement program in effect pursuant to the contract between OCERS and the District as of December 2, 1977,will continue until June 30, 2005. Effective July 1, 2005,the following change will occur: 1. The District will contract with the Orange County Employees Retirement System to provide the following new benefit formula for all existing Tier II employees and any new employees, 2.5% @ 55 based on the highest consecutive 36 months average earnings, past and future service. 2. Tier I employees will be allowed to make a one-time only decision to remain in the current Tier I program or move to the new option. This decision must be made by June 1,2005. The District will continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System through June 30,2005. Effective July 1, 2005,the following change will occur: 1. The District will pay 3.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all current employees converting to the new plan and any new employees entering the system. 2. The District will continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all employees remaining in the Tier I option. 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 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 will receive a shift differential of$2.50 per hour. ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY PERSONAL LEAVE 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 bi-weekly basis as follows: Page 11 Years of Service Hours- Hours-Annual Biweekly In years 0 through 1 2.31 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 and over 8.46 220 * Only 60 hours may be taken in the first year; the 20 additional hours will be credited to the accrual balance following successful completion of one year's service. Scheduled Time Off 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 weeks in advance to increase the likelihood of those dates being approved. However, in the event unforeseen circumstances prevent such advance notification, employees may request scheduled time off with as little as one day's notice. Employees with at least one years service must request and take at least 40 hours off each year. Preference among employees who request time off at least six months in advance will be based on seniority. Requests received less than six months in advance will be scheduled in the order received. Personal leave may only be reported in increments of one half hour or more. Unscheduled Time Off 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, except that two days of Personal Leave may be charged to Unscheduled Time Off each calendar year without documentation. For all other days, employees may be required to submit medical documentation of their injury or illness. It is the responsibility of District's management to control the potential abuse of unscheduled time off privileges. Tardiness less than 15 minutes will not be deducted from the employees pay, but numerous occurrences will be addressed through the progressive discipline procedures. Tardiness of one hour or more will be considered an unscheduled occurrence. An employee's attendance record will be reviewed with an employee after five separate occurrences of unscheduled time off, including the two undocumented days referred to above and the use of sick leave time as provided for under Sick leave Bank,to provide an opportunity to assess problems that could potentially lead to disciplinary action. The accumulation of the sixth and seventh occurrence within a calendar year will result in a verbal warning. The eighth occurrence will result in a written warning. Employees who are charged with ten occurrences of absence within a twelve-month calendar period will be subject to termination. 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. Employees must notify their supervisor prior to the start time of their shift when they are unable to report for work. Employees returning from an extended leave should notify their supervisor as soon as possible to facilitate personnel scheduling. 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 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 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. Personal Leave and Workers' Compensation Leave 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 Page 12 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. Personal Leave Payoff Employees who terminate, retire or decease will be paid in full at their current rate of pay for all Personal Leave hours accrued. Maximum Accrual Employees may have a maximum accumulation of 400 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 400 hours, it must be used prior to said December date. All other remaining hours in excess of 400 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. Sick Leave Bank 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, or to attend to the illness or injury of an immediate family member. Employees who retire or decease will be paid at the 50 percent rate for all banked sick leave hours;an employee who terminates will be compensated for banked sick leave as follows: Banked Sick Leave Hours Rate of Payoff 0— 100 0 percent 101 —240 25 percent 241 —560 35 percent Over 560 50 percent 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. JURY DUTY LEAVE Employees called for jury duty will be granted a leave of absence for the actual time spent on jury service up to a maximum of twenty-two days. Employees who work other than the day shift who are called for jury 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. A copy of the jury notice must be provided to the employee's supervisor and the Human Resources Department. Employees must report for work during their regularly scheduled work shift when they are relieved from jury duty, unless there is less than %of their regular shift remaining WITNESS LEAVE 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 request on a "Request for Leave"form approved by his/her Supervisor and the Director of Human Resources, 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. An employee so subpoenaed must submit a copy of the subpoena with his/her time sheet 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. MILITARY LEAVE A request for military leave will be made upon leave-of-absence fors approved by the Director of Human Resources 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. Provisions of the Military and Veterans Code of the State of Califomia, Sections 395-395.5 will govern military leave. In general,current law provides that an employee having one year or more service with a public entity is entitled to military leave with pay not exceeding 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 Page 13 without pay, not exceeding 17 calendar days per year,although the employee may, at his or her option, elect to use vacation 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. BEREAVEMENT LEAVE Using the prescribed forms, approved by Human Resources,any full-time employee,whether probationary or regular,will receive a maximum of 36 hours of paid time for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband,wife, child,stepchild,grandchild,grandparent,foster parent, foster child, legal guardian, or any family member with whom the employee resides. ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY It is the policy of the District to grant employees extended leave-of-absences under certain circumstances. Except as stated below, employees will not receive compensation during a leave-of-absence. Using the prescribed forms, approved by the Director of Human Resources, any full-time, including probationary, or part-time employees with at least 52 weeks of service and at least 1,250 hours of service, may be granted an FMLA or CFRA leave-of-absence without pay, not to exceed 12 weeks in a twelve(12)month calendar period. 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 consecutive working days,or for absences of ten working days or more when using paid sick leave accruals. SUBSTITUTION OF PAID LEAVE 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 vacation and other accruals, except sick leave accruals, before unpaid leave is granted. Vacation, personal leave and sick leave credit will not accrue during any pay period that an employee is absent without pay for more than one day. Personal leave accruals may be used for the care of the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband, wife, child, step-child,grandchild, grandparent, legal guardian, or any family member with whom the employee resides. PERMISSIBLE USES FMLA Leave Unpaid FMLA leave may be used for 1)child care following the birth or placement of a child, 2)the care of a father,father-in-law, mother, mother-in-law, brother, sister, husband,wife, child, step-child, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition,as defined in the Act;and, 3)for 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. CFRA Leave Unpaid CFRA Leave may be used for: 1)the same purposes as FMLA Leave, and will run concurrently except that 2)an employee's incapacity due to pregnancy is not eligible for CFRA Leave. However, such incapacity may entitle an employee to up to four months of pregnancy disability leave,with medical approval, plus another 12 weeks of FMLA Leave, to care for the child, in a 12-month period. GENERAL PROVISIONS Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests 30 days advance notice. Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by a health care provider. Medical and Dental Premiums 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. Reinstatement 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. Page 14 Failure to Return to Work If, upon the expiration of FMLA or CFRA Leave, or any District-approved extension thereof,an employee fails to return to work, the employee will be considered to have automatically resigned from his/her position. The District will review vacancies to determine whether or not a vacant position exists that the employee is qualified to perform with or without reasonable accommodation. If the employee is still unable to perform the essential duties of his/her position,the employee will be considered to have automatically resigned from his/her position, unless eligible for disability retirement. Bridge of Service If an employee is forced to automatically resign from his or her position as a result of a bona-fide injury or illness, and then is rehired to a position within the District within one 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 employees original date of hire. District Employment of Spouses Marred employees will be limited to a total of 12 weeks FMLA or CFRA Leave in a 12 month calendar period for the care of a parent or newly born or placed child. Six-month Limit on Unpaid Leaves-of-absence In no event will a combination of authorized leave-of-absences,whether paid or unpaid, exceed six months in a 24 month period unless required by the FMLA, CFRA or other law. GENERAL LEAVE Subject to Section Six-Month Limit on Unpaid Leaves of Absence above, employees may be granted a general leaveof-absence to attend to personal matters,or for FMLA or CFRA qualifying events after the expirations of previously authorized leave, if the Director of Human Resources determines that an extended period of time away from the job will be in the best interests of the employee and the District. 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. RETURN TO WORK POLICY FOR NON-WORK-RELATED LEAVE An employee who has been absent from work due to a medical, non-work-related reason will be subject to a Retum-to-Work medical evaluation. 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)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. 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 American with Disabilities Act)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. COMPLIANCE WITH LAW 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 An employee who believes his/her position is not properly classified may submit a written request o 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 Director of Human Resources 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 V 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. Page 15 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. Y-Rating 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 (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 Y-rating based on the above schedule will be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of pay. The Y-rate will remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary,or until the tens 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 will 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. Z-Rating 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. If a position is allocated to a higher paid classification, and the incumbent is promoted to that level,the employee's salary will be placed at the step of the new range that is nearest a one-step increase. Hazardous Assignments On or about October 1,2003, the District and Local 501 agree to meet and confer on the issue of hazardous assignments. Topics to be discussed include: 1)personnel assigned to hazardous activities; 2)mandatory versus voluntary assignments to hazardous activities; and, 3) maintaining standards and qualifications prescribed in job specifications. Nothing in this reopener provision shall require the District to implement a hazardous pay program during the term of this MOU. ARTICLE 30. - DRIVER'S LICENSE Employees who are required by the District to drive must notify their supervisor and the Human Resources Office 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. 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. 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. Page 16 ARTICLE 31. - LAYOFF PROCEDURE Employees hired prior to December 1, 1999,who continue to perform their duties satisfactorily,will not be laid off for lack of work or lack of funds from the effective date of this contract through October 30, 2002. 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. The layoff procedure outlined below will be followed if the District finds it necessary to lay off personnel who were hired after December 1, 1999 and for any layoffs which occur after November 1, 2002. 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 weeks notification in writing whenever possible. 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 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. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two 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 days,or the offer will be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers will have his/her name removed from the list. 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 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 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 Approved use of a personal vehicle for District business will be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY Employees who are assigned by District's management to perform the duties of an open, budgeted position at a higher level for a period of at least 100 consecutive hours will 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 101r hour and continues until the assignment ends or the six 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 Human Resources. The 100-hour eligibility period may be waived at the discretion of the General Manager. Page 17 SUBSTITUTION PAY 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. Operations If a 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 Senior Plant Operator will be paid equal to a one step salary increase or the first step of the Operations Supervisor pay range, whichever is greater. Maintenance 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 Supervisor for a period of at least 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 The District and Local 501 hereby agree that ratification of this agreement by the Board of Directors will resolve any and all outstanding issues associated with the performance-based plan Side Letter of Understanding agreed to in April 2001. Therefore,the conversion of"non-base building"increases to"base building"increases associated with the implementation of the performance-based plan and outcomes of the District's Classification and Compensation Study will not be implemented for July 2001. ARTICLE 37. - PERSONNEL FILES Employees have the right to inspect their Personnel File in the Human Resources Office 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. 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 The Local 501 may use the bulletin boards located at Plant 1 and Plant 2 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 A maximum of six 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. The LOCAL 501 will provide the Director of Human Resources 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 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 DISTRICTS' FACILITIES District facilities may be used by the Local 501 with prior notice to the Director of Human Resources 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. Page 18 ARTICLE 41. - SCOPE OF BARGAINING The District and the 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 any subject or matter not removed by law from the area of the meet and confer process, and the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are contained in this Agreement. Therefore,the District and the Local 501, for the term of this Agreement,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 If either the District or Local 501 declares that an impasse exists in the meet and confer process, the parry 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 14 calendar days or as soon as practicable to: a) Review the position of the parties in a final effort to reach agreement on a memoranda of understanding, and b) If the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. Impasse Procedures are: 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. 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 will be mutually shared by the Districts and Local 501. 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 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 Districts,the Districts and the 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 The District will provide and maintain ten uniform pants and shirts,which may include the name of the employee and District's seal, at no cost to appropriate Operations and Maintenance personnel. The District will also provide each field employee with a jacket. The District will provide for the cleaning of the jacket, and will determine when the jacket needs to be replaced. 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. ARTICLE 45. - SUBSTANCE ABUSE POLICY The District's Drug and Alcohol Policy will apply to all unit members. Department of Transportation Regulations 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 Page 19 or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. ARTICLE 46. - DUES DEDUCTIONS The District will deduct from each regular paycheck and remit to Local 501 the dues, initiation fees and assessments including Agency Shop associated service fees or religious exemptions,for each employee who authorizes such deduction in writing. Such authorizations must be fled by the end of the pay period prior to the period for which the deduction is requested. The District will provide the Local 501 a monthly list of the names and social security numbers of those employees for whom it has made deductions. In addition, the District will provide the names and addresses of new employees and the names of employees who have terminated within the previous month. ARTICLE 47. -AGENCY SHOP SIDE LETTER OF AGREEMENT BETWEEN OPERATING ENGINEERS LOCAL 501 AND ORANGE COUNTY SANITATION ('DISTRICT') CONCERNING AGENCY SHOP 1. Legislative Authority The parties mutually understand and agree that as a result of State of California adoption of SB 739, all full-time unit employees represented by Operating Engineers Local 501 (hereinafter"Union")have the right to join or not join the Union. However,the enactment of a local"Agency Shop"requires that as a condition of continuing employment, employees must either join the Union or pay to the Union a service fee in lieu thereof. Such service fee shall be established by the Union, and shall not exceed the standard initiation fee, periodic dues and general assessments of the Union. 2. Union Dues/Service Fees (a) Effective November 16, 2001,the Human Resources Department shall provide all current employees and any employees hired thereafter with an authorization notice advising them that the District has entered into an Agency Shop agreement with the Union, and that all employees subject to the Agreement must either join the Union, pay a service fee to the Union, or execute a written declaration claiming a religious exemption from this requirement. Such notice shall include a form for the employee's signature authorizing payroll deduction of Union dues or a service fee, or a charitable contribution equal to the service fee. Said employees shall have 14 calendar days from the date they receive the form to fully execute it and return it to Human Resources. (b) If the form is not completed properly and returned within 14 calendar days,the District shall commence and continue a payroll deduction of service fees from the regular biweekly paychecks of such employee. The effective date of Union dues, service fee, or charitable contribution shall begin no later than the first full pay period after receipt of the authorization form. (c) The employee's eamings must be sufficient after the other legal and required deductions are made to cover the amount of the dues or fees authorized. 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. 3. Religious Exemption (a) Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall Page 20 not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, in lieu of periodic dues, initiation fees, or agency shop fees,to pay sums equal to the dues, initiation fees, or agency shop fees to a nonreligious, nonlabor charitable fund exempt from taxation under Section 501(c)(3)of the Internal Revenue Code, chosen by the employee from a list of at least three of these funds,designated in a memorandum of understanding between the District and the Union,or if the memorandum of understanding fails to designate the funds,then to any such fund chosen by the employee. Charitable contributions shall be by regular payroll deductions only in order to qualify as a condition of continued exemption from the requirement of financial support to the Union. (b) Declarations of or applications for religious exemption and any other supporting documentation shall be forwarded to the Union within 14 calendar days of receipt by the District. The Union shall have 14 calendar days after receipt of a request for religious exemption to challenge any exemption granted by the District. If challenged,the deduction to the charity of the employee's choice shall commence but shall be held in escrow pending resolution of the challenge. 4. Rescission The agency shop provision in this memorandum of understanding may be rescinded by a majority vote of all the employees in the unit covered by the memorandum of understanding, provided that: (a) A request for such a vote is supported by a petition containing the signatures of at least 30 percent of the employees in the unit. (b) The vote is by secret ballot; (c) The vote may be taken at any time during the term of the memorandum of understanding, but in no event shall there be more than one vote taken during that term. Notwithstanding the above, the District and the Union may negotiate, and by mutual agreement provide for, an alternative procedure or procedures regarding a vote on an agency shop agreement. (d) If a"rescission vote"is approved by unit members during the term of a current MOU,the Union agrees not to petition for or seek Agency Shop status for the remainder of the current MOU. 5. Records The Union shall keep an adequate itemized record of its financial transactions and shall make available annually,to the District, and to the employees who are members of the organization,within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an operating statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or by a certified public accountant. An employee organization required to file financial reports under the Labor-Management Disclosure Act of 1959 covering employees governed by this provision, or required to file financial reports under California Government Code Section 3546.5, may satisfy the financial reporting requirement of this section by providing the district with a copy of the financial reports. 6. Indemnification 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 compliance with the agency shop fee obligation, 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 agency shop fee obligation, and the Union agrees to pay any attorney, arbitrator or court fees related thereto. 7. Election Prior to the implementation of this provision,the California State Mediation and Conciliation Service shall conduct a secret ballot election to be held on September 11 and 13, 2001. All eligible unit members shall be allowed to participate in the voting, irrespective of current membership in the union. Ballots shall be counted at the conclusion of the September 13, 2001 balloting. 8. Board Approval If the foregoing Agency Shop provisions are approved by the employees on September 13,2001,then authorization to approve this Side Letter of Agreement shall be submitted to the District Board of Directors at its next regular meeting. Page 21 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES During the term of this MOU, 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 Unit, and Local 501 agrees that it will neither advocate, encourage or participate in any 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 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. Relief Operator When Plant Operators, Senior Plant Operators or Power Plant Operator series are assigned to Relief Operator positions, they will be entitled to$1.25 per hour premium. Except in emergencies, an employee will be notified of a change in his/her work schedule at least 48 hours in advance of such change, preferably seven calendar days in advance of such change. In the event that notice is under 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. It will be the intent of Management that relief employees will receive two consecutive days off and will only be subject to split days off when schedule changes occur. Shift change-bidding procedure The District will mail (e-mail is acceptable)a shift change request form to employees in appropriate classifications every six months. Any employee who wishes to be assigned to 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 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 months to fill vacant positions. A new employee or a promoted employee may request to the Human Resources Office to be added to the current list within two weeks of his/her start date (new employee)or of being notified of the promotion. When the District intends to fill an open position,the following steps will be followed: a) The District will notify the most senior employee on the Shift Change Request list of the availability of the open position. b) Within two 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. c) If the most senior employee rejects the position,the position will be offered to the next most senior employee on the list. d) The process will be repeated until the position is filled or the list is exhausted. If an employee declines a shift change offer, or does not notify the Human Resources Office within the two 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 business days. Requests for urgency transfer 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: 1. 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. Page 22 2. 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. 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 of the emergency or medical condition, and include medical documentation. ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. - RESIGNATION Voluntary written termination of employment with the District is irrevocable after 72 hours from the receipt of the resignation except by approval of the Director of Human Resources. ARTICLE 52. - OPERATOR CERTIFICATION All employees assigned to the 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. The District will notify the Office of Operator Certification in writing within 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. 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 Office within 10 business days of employment. Operators-in-Training who do not receive their Grade I Certificate within three 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. During the term of this MOU, the District and Local 501 agree to meet and confer on the issue of operator certification and certificate pay for the achievement of higher levels of certification. Topics to be discussed include: 1)certification requirements; 2)treatment plant classification; 3)grades of operator certification for the operation of wastewater treatment plants;and,4)certificate pay for the achievement of certification levels over the minimum required for appointment to a classification. Page 23 2002-2007 MEMORANDUM OF UNDERSTANDING BETWEEN ORANGE COUNTY SANITATION DISTRICT AND INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 501,AFL/CIO FOR THE OPERATIONS AND MAINTENANCE UNIT Executed: C)c&6w 15, sC'�u.l Signature page INTERNATIONAL UNION OF OPERATING ORANGE COUNTY SANITATION DISTRICT ENGINEERS, LOCAL 501,AFL CIO J' McLaughlin, Business Blake P. Ander on, General Manager ' Do a , President Steve Filarsky, CWf Negotiat Larry EXIson, Vioe-President Lisa L. Tomko, Director of Human Resources px-Az/� � � ag �, I David Hammon, Business Representative 3eff Re um n Resources Manager � ..,o Cdt M rk utz, h f Steward Collins, Principal Human Resources Analyst 1nn n Coll � Bernie DeAnda, Negoti in am Steve ell in earn :)9 va' Dave Usher, Usher, Negotiating Team JddVallone, Negotiating Team ff o ard, Negouang TeamTeam Page 24 OPERATIONS AND MAINTENANCE PAY GRADES PAY NOVEMBER 29,2002 JULY 11,2003 LASSIFICATION GRADE MIN MID MAX MIN MID MAX MMS Technician ll 75 $27.868 $31,351 $34.835 $28.874 $32,483 $36,092 eatl Electrical Technician 75 $27.868 $31.351 $34.835 $28.874 $32.483 $36.092 eatl Instrumentation Technician 75 $27.868 $31.351 $34.835 $28.874 $32.483 $36.092 eatl Power Plant Operator 75 $27.868 $31.351 $34.835 $28.874 $32.483 $36.092 MMS Technician 71 $25,246 $28,402 $31.558 $26,155 $29,425 $32.694 Electrical Technician ll 71 $25.246 $28.402 $31.558 $26.155 $29.425 $32.694 Instrumentation Technician ll 71 $25.246 $28.402 $31.558 $26.155 $29.425 $32.694 Lead Mechanic 71 $25.246 $28.402 $31.558 $26.155 $29.425 $32.694 Lead Welder/Fabrcator 71 $25,246 $28,402 $31.558 $26.155 $29,425 $32.694 Power Plant Operator 11 71 $26.246 $28.402 $31.558 $26.155 $29.426 $32.694 Senior Plant Operator 71 $25.246 $28.402 $31.558 $26.155 $29.425 $32.694 Machinist 68 $23.442 $26.372 $29.302 $24.286 $27.322 $30.358 Automotive/Heavy Equipment Technician 67 $22.874 $25,733 $28.592 $23,700 $26,663 $29.625 Equipment Operator 67 $22.874 $25.733 $28.592 $23.700 $26.663 $29.625 Senior Mechanic 67 $22.874 $25.733 $28.592 $23.700 $26.663 $29.625 elder/Fabricator 67 $22.874 $25.733 $28,592 $23.700 $26.663 $29.625 Lead Facilities Worker 66 $22.315 $25,105 $27,894 $23.123 $26,013 $28.904 Plant Operator 66 $22.816 $25.105 $27.894 $23.123 $26.013 $28.904 Power Plant Operator 1 66 $22.315 $25.105 $27.894 $23.123 $26.013 $26.904 Electrical Technician l 65 $21.771 $24.492 $27,213 $22.555 $25.375 $28.194 Insimmentatlon Technician l 65 $21,771 $24,492 $27,213 $22,555 $25,375 $28.194 Senior Maintenance Worker 64 $21.240 $23.895 $26.550 $22.006 $24.757 $27.508 Facilities WorkedBuilder 62 $20.215 $22.742 $25.269 $20.945 $23.663 A$24 Facilities Worker/Painter 62 $20.215 $22.742 $25.269 $20.945 $23.563 Mechanic 61 $19.722 $22.187 $24.652 $20.432 $22.986 Maintenance Worker 60 $19.242 $21.847 $24.052 $19.936 $22.431 ontrol Center Technician 58 $18.318 $20.608 $22.898 $18.978 $21.351 OperatorInTraiing58 $18.318 $20.608 $22.898 $18'71 $21.351 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT November 29, 2002 through June 30, 2007 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION................................................................................................................................2 ARTICLE 2. -DURATION.......................................................................................................................................2 ARTICLE 3. -SUCCESSOR AGREEMENT...........................................................................................................2 ARTICLE4. -OCEA ACCESS...............................................................................................................................2 ARTICLE S. -OCEA RIGHTS.................................................................................................................................2 ARTICLE 6. -DISTRICT RIGHTS..........................................................................................................................2 ARTICLE 7. -NONDISCRIMINATION IN EMPLOYMENT....................................................................................2 ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT.........................................................................................3 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 .....................................................................5 ARTICLE 14.-SEVERANCE PAY.........................................................................................................................6 ARTICLE 15.- DEFERRED COMPENSATION.....................................................................................................7 ARTICLE 16.- HOLIDAYS.....................................................................................................................................7 ARTICLE 17.- HOURS OF WORK........................................................................................................................7 ARTICLE 18.-CALL-BACK PAY..........................................................................................................................8 ARTICLE 19.-STANDBY PAY..............................................................................................................................8 ARTICLE 20.- INSURANCE..................................................................................................................................8 MEDICAL...............................................................................................................................................................8 LIFE......................................................................................................................................................................8 SHORT TERM DISABILITY....................................................................................................................................... S LONGTERM DISABILITY......................................................................................................................................... 8 DENTAL................................................................................................................................................................ 8 VISION 8 RETIRING EMPLOYEES 9 ARTICLE 21.- REIMBURSEMENT ACCOUNT.....................................................................................................9 GROUP INSURANCE PREMIUMS 9 MEDICAL CARE REIMBURSEMENT ACCOUNT 9 DEPENDENT CARE ASSISTANCE ACCOUNT.............................................................................................................9 ARTICLE 22.-OVERTIME.....................................................................................................................................9 ARTICLE 23. - PROBATIONARY PERIOD...........................................................................................................9 ARTICLE 24. - PROMOTIONS............................................................................................................................. 10 Pagel ARTICLE 25.- RETIREMENT.............................................................................................................................. 10 ARTICLE 26.-SHIFT DIFFERENTIAL................................................................................................................ 10 ARTICLE 27.- LEAVE-OF-ABSENCE WITH PAY.............................................................................................. 10 VACATION LEAVE 10 SICK LEAVE 11 JURYDUTY LEAVE.......................................................................................................................................... 12 WITNESSLEAVE............................................................................................................................................. 12 MILITARYLEAVE............................................................................................................................................. 12 BEREAVEMENT LEAVE.................................................................................................................................. 12 ARTICLE 28.- LEAVE-OF-ABSENCE WITHOUT PAY...................................................................................... 13 SUBSTITUTION OF PAID LEAVE.................................................................................................................... 13 PERMISSIBLE USES ....................................................................................................................................... 13 FMLALeave................................................................................................................................................. 13 CFRALeave................................................................................................................................................. 13 GENERAL PROVISIONS 13 Requests for FMLA and CFRA Leave 13 MedicalCertifica0on..................................................................................................................................... 13 Medical and Dental Premiums...................................................................................................................... 13 Reinstatement............................................................................................................................................... 13 Failureto Return to Work.............................................................................................................................. 13 Bridgeof Service.......................................................................................................................................... 14 District Employment of Spouses................................................................................................................... 14 Six-month Limit on Unpaid Leaves-of-absence............................................................................................ 14 GENERALLEAVE 14 RETURN TO WORK POLICY FOR NON-WORK-RELATED LEAVE............................................................... 14 COMPLIANCE WITH LAW................................................................................................................................ 14 ARTICLE 29.-CLASSIFICATION STUDIES....................................................................................................... 14 ARTICLE 30: DRIVER'S LICENSE..................................................................................................................... 15 ARTICLE 31.- LAYOFF PROCEDURE............................................................................................................... 15 ARTICLE 32.- LIGHT DUTY................................................................................................................................ 16 ARTICLE 33.- MEDICAL EXAMINATION........................................................................................................... 16 ARTICLE 34.-MILEAGE ALLOWANCE............................................................................................................. 16 ARTICLE 35.-ACTING PAY............................................................................................................................... 16 ARTICLE 36.- PERFORMANCE REVIEWS........................................................................................................ 16 ARTICLE 37.- PERSONNEL FILES.................................................................................................................... 16 ARTICLE 38.. BULLETIN BOARDS................................................................................................................... 17 ARTICLE 39.- RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................17 ARTICLE 40.- USE OF DISTRICT FACILITIES.................................................................................................. 17 ARTICLE 41.-SCOPE OF BARGAINING........................................................................................................... 17 ARTICLE 42.- IMPASSE PROCEDURES........................................................................................................... 17 ARTICLE 43.-SEVERABILITY........................................................................................................................... 17 ARTICLE44.-UNIFORMS.................................................................................................................................. 18 Page ii ARTICLE 45.-SUBSTANCE ABUSE POLICY................................................................................................... 18 DEPARTMENT OF TRANSPORTATION REGULATIONS............................................................................................... 18 ARTICLE 46.- DUES DEDUCTIONS................................................................................................................... 18 ARTICLE47.......................................................................................................................................................... 18 ARTICLE 48.- PEACEFUL RESOLUTION OF DISPUTES................................................................................ 18 ARTICLE49.......................................................................................................................................................... 18 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY................................................................ 18 ARTICLE 51. - RESIGNATION............................................................................................................................. 18 ARTICLE52.......................................................................................................................................................... 18 SIGNATUREPAGE.............................................................................................................................................. 19 EXHIBIT"A."CLASSIFICATION &SALARY RANGE GUIDE...........................................................................20 Page!!I 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, at seq., and Resolution No. 75-127 of the Joint Board of Directors,the Districts 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 This Agreement, effective November 29, 2002, 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 OCFA." 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 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, 2007.This Agreement shall act as a bar to the raising of the question of representation during its term, except that the question of representation may be raised during the period between sixty and ninety days prior to its expiration. ARTICLE 3. - SUCCESSOR AGREEMENT Each party shall submit in writing its initial proposal for a successor agreement at least sixty days prior to the expiration date of this Agreement. ARTICLE 4. - OCEA ACCESS 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. 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 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 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources 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. Page 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 Except as otherwise specifically provided in this Agreement or applicable laws, the District has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following: 1. To determine the nature and extent of services to be performed, as well as the right to determine and implement its public function and responsibility. 2. To manage all facilities and operations of the District, including the methods, means and personnel by which the District's operations are to be conducted. 3. To schedule working hours and assign work. 4. To establish, modify or change work schedules or standards. 5. To direct the working forces, including the right to hire, promote, demote or transfer any employee. 6. To determine the location of all plants and facilities. 7. To determine the layout and the machinery, equipment or materials to be used. 8. To determine processes, techniques, methods and means of all operations, including changes or adjustments of any machinery or equipment. 9. To determine the size and composition of the working force. 10. To determine policy and procedures affecting the selection or training of employees. 11. To establish, assess and implement employee performance standards, including, but not limited to,quality and quantity standards;the assessment of employee performance; and the procedures for said assessment. 12. To control and determine the use and location of District property, material, machinery or equipment. 13. To schedule the operation of and to determine the number and duration of shifts. 14. To determine safety, health and property protection measures. 15. To transfer work from one job to another or from one plant or unit to another. 16. To introduce new, improved or different methods of operations, or to change existing methods. 17. To layoff employees from duty for lack of work or lack of funds. 18. To reprimand, suspend, discharge or otherwise discipline employees for cause. 19. To establish and determine job classifications. 20. To promulgate, modify and enforce work and safety rules and regulations. 21. To take such other and further action as may be necessary to organize and operate the District in the most efficient and economical manner and in the best interest of the public it serves. 22. To contract or subcontract construction, services, maintenance,distribution or any other work with outside public or private entities. 23. OCEA expressly and specifically agrees that except to the extent that the District's rights are expressly limited by the terms of this Agreement, OCEA waives any and all of its rights to meet and confer on any of the District's rights. If the exercise of these rights affects wages, hours or terms and conditions of employment,the District may act to exercise its rights but shall meet and confer on the effects of its actions. 24. To adopt rules, regulations and policies to implement and/or be in compliance with federal and state laws. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. 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 marital status, handicap, medical condition, status as a disabled veteran,age or citizenship. Page 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 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 is not acceptable within District facilities, and may occur only in outside areas not posted as no smoking. ARTICLE 9. - SAFETY 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 1. Discipline may occur when any of the following actions are taken forjust 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. 2. Dismissal,for purposes of this Article, is the separation of a non-probationary employee initiated by the District for just cause. 3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 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. 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 business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 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 Human Resources policies and procedures. 7. Dismissal shall be preceded by at least one 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 warnings. 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 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 Page 3 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. 9. Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Office. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four 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 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 Office for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. 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. 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, reduction from Step 6 to Step 5 pursuant to Article 13 shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 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. 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 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. 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. Step 1. An employee who has a complaint shall attempt to resolve it with his or her immediate supervisor within five days of the occurrence of the event giving rise to the complaint,or within five days from the time that the employee became aware of such event. The supervisor shall attempt to resolve the issues surrounding the complaint, and respond to the employee within five days. 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 five 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.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 slate 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. The Department Head shall respond in writing to the employee within ten days after the date the grievance is received. Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the Director of Human Resources, or designee, for review and written response.The request for formal review must be presented on a form provided by the District within ten 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. The Director of Human Resources or designee shall respond in writing to the employee within ten days after the date the grievance is received. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to the General Manager within ten days from the date the Step 3 finding was issued. The General Manager, or designee,shall respond in writing to the employee within fifteen days after the dale the grievance is received.Appeal to the General Manager is the final step in the Grievance Procedure. Page 4 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. Failure of a supervisor, Department Head or other 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 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. 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 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. 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. 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 within ten days of receipt of the supervisor's decision. Upon request of either parry, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten 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 is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION Merit Pay Step System Effective November 29, 2002, each pay grade will be divided into 6 steps with an approximate 4.6%difference between each step. Effective November 29, 2002, all active employees as of November 29, 2002 will be placed on the nearest step so that no employee will experience a decrease in his/her hourly pay rate. Employees hired on or before November 29, 2002 will be eligible for a step increase on the following dates for the duration of this contract based on receiving a satisfactory or above performance review rating until they reach step 5. Employees not receiving a satisfactory or above performance review shall not be eligible for a merit based salary adjustment. • July 11, 2003 • July 9, 2004 • July 8, 2005 • July 7, 2006 Movement between step 5 to step 6 will be based on a"gatekeeper'factor. • Gatekeeper factor Placement at step 6 of the salary range will require receipt of an above average or outstanding performance review on an annual basis. Unit employees who are at step 6 of the range and who do not receive an above average or outstanding performance review shall be placed at step 5 of the range and will not be placed at step 6 unless an above average or outstanding performance review is received in the following year. A change from step 6 to step 5 shall be reviewed and approved by the Human Resources Director or his/her designee prior to implementation. An employee may appeal the change pursuant to the"appeal process" provided for in the current review procedure for OCEA employees. Page 5 Employees hired after November 29, 2002, shall be eligible for a step increase based on the following schedule: • Step 1 to 2: First pay period following six(6)months of service • Step 2 to 3: First pay period following one(1)year of service at step 2 • Step 3 to 4: First pay period following one(1)year of service at step 3 • Step 4 to 5: First pay period following one(1)year of service at step 4 • Step 5 to 6: First pay period following one(1)year of service at step 5. Salary Structure Range Adjustment Effective November 29, 2002,the current salary ranges will be increased by 1.24%. Base wages for all active employees as of November 29,2002 will be adjusted by 1.24%. Salary ranges will be reviewed and updated based on the 75' percentile, effective the first pay period after each fiscal year.A market study will be conducted on or about July 15t'of each year utilizing ranges in effect July I", resulting in the following: • This information will be discussed during a meet and confer process with management and business representatives. • Salary ranges will be adjusted based on the overall average of this market study to the hundredth decimal place, not to exceed a 4.00%annual increase. • Adjustments for the duration of the contract will be as follows: o July 11, 2003 o July 9, 2004 o July 6,2005 o July 7, 2006 • Base wages for all active employees as of the above dates will be adjusted accordingly. The District will not conduct a new comprehensive district-wide classification and compensation study during the term of this agreement. Classification Pay Grade Adjustment As part of the annual salary structure range adjustment process, each benchmark classification will be reviewed to determine if any individual classifications need to have the pay grade adjusted based on the following criteria: 1. If a pay grade change is agreed upon for a specific classification,the District and OCEA will review other classifications that are linked to the specific classification (within the unit or comparable classifications in other departments)to maintain the internal integrity of the district-wide salary range structure. 2. In the event that a benchmark classification (and a classification"tied into"a benchmark classification)is five percent(5.0%)or more below the aggregate average of all benchmark classifications, the parties agree to meet and confer with respect to such classifications; the issues to be discussed are additional salary adjustments to maintain the 75"percentile, "vertices job series relationships, and"horizontal"job classification comparisons. ARTICLE 14. - SEVERANCE PAY Employees are expected to give a minimum of two 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 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: 1. Full-time, regular employees shall be entitled to eight hours pay for each full calendar month of continuous employment not to exceed one hundred sixty hours pay. 2. Employees in limited term or part-time classifications, probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. Page 6 ARTICLE 15. - DEFERRED COMPENSATION Employees may participate in the District's approved deferred compensation plan subject to all guidelines for participation established by District's management. ARTICLE 16. - HOLIDAYS The days listed below are observed by the District as holidays. Full-time employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status. 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 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.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. In no case may an employee accumulate more than fifty hours Holiday compensatory time off. 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 Christmas Day Floating Holiday— Employees may elect one day during each year as a"Floating Holiday",which new employees shall accrue on the following pro rate basis their first calendar year of service: V'quarter hire—100%; 2"d quarter hire —75%; 3r°quarter hire—50%; and,0 quarter hire—0%. Such day must be used within the year it is accrued. Every effort will be made to grant an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17. - HOURS OF WORK 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(9180 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. 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. The District may, at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee. Page 7 ARTICLE 18. - CALL-BACK PAY 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 Standby is time during which an employee is not required to be at the work location or at the employee's resi- dence 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 two hundred dollars per week, and shall receive Call Back pay when they are actually called to work. ARTICLE 20. - INSURANCE In January 2004, the District and OCEA agree to reopen this Article for the purpose of developing cost containment initiatives in the existing health plans and/or to change insurance carriers. Any changes must be mutually agreed to by the parties.This reopener shall not include the District's contribution rate set forth below. The District shall provide medical/health insurance coverage through both Health Maintenance Organizations and an indemnity type group health plan, life insurance, and disability insurance for the benefit of full-time employees. All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire dale. An open enrollment period shall be held annually in the month of June. Medical Regular,full-time employees: The District shall contribute 100%of employee only premiums for the HMO medical health plans and shall contribute 90%of employee only premiums for the POS medical health plans and shall contribute 75%of the employee+1 dependent and full family premiums.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 the plan.The new contribution rate will become effective July 1,2004. Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. Short Term Disability The District shall provide a non-work related,short-term disability indemnity plan that pays up to$490 per week for up to 26 weeks following a fourteen calendar day waiting period. Long Term Disability 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 years of service. 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. Dental The District will contribute 80%of employee only premiums for dental insurance and will contribute 80%of full family premiums. This new contribution rate will become effective July 1, 2004. Vision The District shall provide a vision insurance plan for regular,full-time employees and eligible dependents. Page 8 Retiring Employees The District shall pay,for employees hired prior to July 1, 1988, two and one-half 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. 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. The District shall enter into an agreement with the Orange County Employee Retirement System(OCERS)to implement the retiree medical health premium offset program established by the County of Orange wherein the cost of health premiums are offset by$10 per month for every year of service up to a maximum of 25 years or $250 per month. ARTICLE 21. - REIMBURSEMENT ACCOUNT 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 Office. Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 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 rare costs not otherwise covered by his or her medical insurance. 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 child care expenses or day care for a disabled dependent. ARTICLE 22. - OVERTIME 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. 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 40 hours in a seven (7)day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 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 twenty-six weeks 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. 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. Employees who are reassigned or laterally transferred will serve a probationary period of twenty-six(26)weeks. 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. Page 9 ARTICLE 24. - PROMOTIONS A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. The District shall determine whether a vacant position shall be filled on an open, promotional or reassignment basis. Whenever the District intends to fill a position by promotion, the District shall post the opportunity for a minimum of ten business days. Employees must apply during the period of posting. Notices shall be posted on bulletin boards within Plants 1 and 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 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 twenty-six weeks after the effective dale of the promotion. 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 The District shall continue participation in the Orange County Employees Retirement System,wherein all full-time employees are considered members. The retirement program in effect pursuant to the contract between OCERS and the District, as of December 2, 1977, shall continue until June 30, 2005. Effective July 1, 2005,the following change will occur: 1. The District will contract with the Orange County Employees Retirement System to provide the following new benefit formula for all existing Tier II employees and any new employees, 2.5% @ 55 based on the highest consecutive 36 months average earnings, past and future service. 2. Tier I employees will be allowed to make a one-time only decision to remain in the current Tier I program or move to the new option. This decision must be made by June 1,2005. The District shall continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System through June 30,2005. Effective July 1, 2005,the following change will occur: 1. The District shall pay 3.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all current employees converting to the new plan and any new employees entering the system. 2. The District shall continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all employees remaining in the Tier I option. 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 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 VACATION LEAVE 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 Page 10 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 Vacation leave begins after an employee has completed 6 months of continuous service. After the individuals first 6 months of service, his or her account will be credited with 40 hours. After that time, he or she will accrue vacation hours consistent with the above chart. Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid- leave payroll status. A full-time, regular employee will be granted pro-rata vacation leave credit during any pay period in which he or she is absent without pay for a minimum of one (1)full working day. A part-time, regular employee will not be granted vacation leave credit during any period he or she is absent without pay on his or her regular working day. 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. SICK LEAVE 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. Temporary employees are not entitled to sick leave benefits. 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. A full-time, regular employee shall be granted pro-rata sick leave credit during any pay period in which he or she is absent without pay for a minimum of one (1)full working day. A part-fime, regular employee shall not be granted sick leave credit during any period he or she is absent without pay on his or her regular working day. In the event an employee is required to work part-time by direction of his or her physician, sick leave credit shall be prorated, except that sick leave shall continue to accrue if an employee is absent due to an injury arising out of or in the course of his or her employment and is entitled to Workers' Compensation benefits. Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the end of 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% 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 shall be paid at the fifty percent(50%)rate for all accrued and unused sick leave. Permissible Uses. Sick leave may be applied only to: Page 11 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, child,grandparent, legal guardian, or any family member with whom the employee resides. D. Absence due to a job-related injury. 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-half hour and thereafter in one-half hour 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. JURY DUTY LEAVE Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms approved by Human Resources, 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 22 working days. Prior to jury duty service,each employee must complete the District's Leave-of-Absence Form and turn it in to Human Resources with a copy of the summons.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. WITNESS LEAVE 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 request on Leave-of-Absence Forms approved by Human Resources, 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. An employee so subpoenaed must submit a copy of the subpoena with his or her time sheet 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. MILITARY LEAVE A request for military leave shall be made upon leave-of-absence forms approved by the Director of Human Resources 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. 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 year or more service with a public entity is entitled to military leave with pay not exceeding 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 17 calendar days per year,although the employee may, at his or her option, elect to use vacation 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. Page 12 BEREAVEMENT LEAVE Using the prescribed forms, approved by Human Resources,any full-time employee,whether probationary or regular, shall receive a maximum of 36 hours of paid time for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband, wife,child,stepchild,grandchild,grandparent,foster parent, foster child, legal guardian, or any family member with whom the employee resides. ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY It is the policy of the District to grant employees extended leave-of-absences under certain circumstances. Except as stated below, employees shall not receive compensation during a leave-of-absence. Using the prescribed forms, approved by the Director of Human Resources, any full-time, including probationary, or part-time employees with at least 52 weeks of service and at least 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 twelve(12)month calendar period. 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 consecutive working days, or for absences of ten working days or more when using paid sick leave accruals. SUBSTITUTION OF PAID LEAVE 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 vacation and other accruals, except sick leave accruals, before unpaid leave is granted. Vacation, personal leave and sick leave credit shall not accrue during any pay period that an employee is absent without pay for more than one day. Personal leave accruals may be used for the rare of the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband, wife, child, step-child,grandchild,grandparent, legal guardian, or any family member with whom the employee resides. PERMISSIBLE USES FMLA Leave Unpaid FMLA leave may be used for 1)child care following the birth or placement of a child, 2)the care of a father,father-in-law, mother, mother-in-law, brother, sister, husband,wife, child, step-child, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition,as defined in the Act;and, 3)for 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. CFRA Leave Unpaid CFRA Leave may be used for: 1)the same purposes as FMLA Leave, and shall run concurrently except that 2)an employee's incapacity due to pregnancy is not eligible for CFRA Leave. However, such incapacity may entitle an employee to up to four months of pregnancy disability leave,with medical approval, plus another twelve(12)weeks of FMLA Leave,to care for the child, in a twelve(12)month period. GENERAL PROVISIONS Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests 30 days advance notice. Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by a health care provider. 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. 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 rase the District's obligation to continue health and dental or other benefits shall cease. Failure to Return to Work If, upon the expiration of FMLA or CFRA Leave, or any District approved extension thereof, an employee fails to return to work, the employee shall be considered to have automatically resigned from his or her position. The District shall review vacancies to determine whether or not a vacant position exists that the employee is qualified to perform with or without reasonable accommodation. If the employee is still unable to perform the essential Page 13 duties of his or her position,the employee shall be considered to have automatically resigned from his or her position, unless eligible for disability retirement. Bridge of Service If an employee is forced to automatically resign from his or her position as a result of a bona-fide injury or illness, and then is rehired to a position within the District within one 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 employees original date of hire. District Employment of Spouses Married employees shall be limited to a total of twelve(12)weeks FMLA or CFRA Leave in a twelve(12)month calendar period for the care of a parent or newly born or placed child. Six-month Limit on Unpaid Leaves-of-absence In no event shall a combination of authorized leave-of-absences, whether paid or unpaid, exceed six months in a 24 month period, unless required by the FMLA, CFRA or other law. GENERAL LEAVE Subject to Section Six-Month Limit on Unpaid Leaves of Absence above, employees may be granted a general leave-of-absence to attend to personal matters,or for FMLA or CFRA qualifying events after the expirations of previously authorized leave, if the Director of Human Resources determines that an extended period of time away from the job shall be in the best interests of the employee and the District. During a general leave-of-absence, the employee shall be required to pay both the District's and the employee's share of medical and dental premiums. RETURN TO WORK POLICY FOR NON-WORK-RELATED LEAVE An employee who has been absent from work due to a medical, non-work-related reason shall be subject to a Return-to-Work medical evaluation. 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)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. 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 American with Disabilities Act)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 reclassified 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. 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 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 Director of Human Resources 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 1a'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. Y-Rating 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 Page 14 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. 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 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. 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. Z-Rating 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. 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 Employees who are required by the District to drive must notify their supervisor and the Human Resources Office 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. 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. 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 Employees hired prior to January 1, 2000,who continue to perform their duties satisfactorily, shall not be laid off for lack of work or lack of funds from the effective date of this contract through October 31, 2002. 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. 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. 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 Page 15 and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 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 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. Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the dale 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. 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 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 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 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 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 100 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 101st hour, and continues until the assignment ends or the six month limitation has been reached al 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 Director of Human Resources. The 100-hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES Employees have the right to inspect their personnel file in the Human Resources Office 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. 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. Page 16 ARTICLE 38. - BULLETIN BOARDS 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 A maximum of three 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. The OCEA shall provide the Director of Human Resources 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 District facilities may be used by the OCEA with prior notice to the Director of Human Resources 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 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 any subject or matter not removed by law from the area of the meet and confer process, and the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are contained in this Agreement. Therefore,the District and the OCEA,for the term of this Agreement,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 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 14 calendar days or as soon as practicable to: 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. Impasse procedures are: 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. 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. 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 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 the OCEA shall meet and confer on the affected article, Page 17 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 The District shall provide and maintain ten 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. 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 wom when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. - SUBSTANCE ABUSE POLICY The District's Substance Abuse Policy will apply to all unit members. Department of Transportation Regulations 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. ARTICLE 46. - DUES DEDUCTIONS 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. The District shall provide the OCEA a monthly list of the names and social security numbers 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 month. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES During the term of this MOU, 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 OCEA agrees that it shall neither advocate, encourage or participate in any 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 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. - RESIGNATION Voluntary written termination of employment with the District is irrevocable after 72 hours from the receipt of the resignation, except by approval of the Director of Human Resources. ARTICLE 52. (This Article intentionally left blank) Page 18 2002—2007 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT Executed /7, AooD Signature page ORANGE COUNTY EMPLOYEES ASSOCIATION— ORANGE COUNTY SANITATION DISTRICT Administrative and Clerical Unit Mango I tson, Sr. Employee Relations Manager Blake P.Anderson, General Manager Helga Halo,Administrative Assistant Steve Filarsky, C f Negot' or Bel itchell, Program Mtstant Lisa L. Tomko, Director of Human Resources 4 Zflt✓ M70 Sullivan, 9, r Technician JeAfRedjWulInan Resources Manager ga,r� CrGC.ww Ja ollins, Principal Human Resources Analyst Page 19 ADMINISTRATIVE AND CLERICAL UNIT PAY NOVEMBER 29,2002 JULY 11,2003 CLASSIFICATION GRADE MIN MID MAX MIN MID MAX Graphics Coordinator II 71 $25.246 $28.402 $31.558 $26,155 $29,425 $32,694 Executive Assistant 69 $24.032 $27.036 $30.040 $24.900 $28.013 $31.125 dministative Assistant 67 $22.874 $25.733 $28.592 $23.700 $26.663 $29.625 Contracts/Purchasing Assistant 67 $22.874 $25.733 $28.592 $23.700 $26.663 $29.625 Graphics Coordinator I 67 $22.874 $25,733 $28.592 $23,700 $26,663 $29,625 Human Resources Assistant 67 $22.874 $25.733 $28.592 $23.700 $26.663 $29.625 Payroll Technician 67 $22.874 $25.733 $28.592 $23.700 $26.663 $29.625 Accounting Assistant II 58 $18.318 $20.608 $22.898 $18.978 $21.351 $23.723 Stoekeeper II 58 $18.318 $20,608 $22.898 $18,978 $21,351 $23.723 Inventory Control Technician 56 $17.432 $19.611 $21.790 $18.060 $20.318 $22.575 Library Technician 56 $17.432 $19.611 $21.790 $18.060 $20.318 $22.575 Program Assistant 56 $17.432 $19.611 $21.790 $18.060 $20.318 $22.575 unting Assistant l 54 $16.592 $18,666 $20.740 $17.192 $19,341 $21.490 8torakee er % $16.592 $18.666 $20.740 $17.192 $19.341 $21.490 Ofice Assistant 50 $15.032 $16.9117 $18.790 $15.577 $17.524 $19.471 Storekeeper Assistant 46 $13.615 $15.31] $17.019 $14.105 $15.868 $17.631 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT November 29, 2002 through June 30, 2007 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION................................................................................................................................2 ARTICLE 2. -DURATION.......................................................................................................................................2 ARTICLE 3. -SUCCESSOR AGREEMENT...........................................................................................................2 ARTICLE4. -OCEA ACCESS...............................................................................................................................2 ARTICLE S. -OCEA RIGHTS.................................................................................................................................2 ARTICLE 6. -DISTRICT RIGHTS..........................................................................................................................2 ARTICLE 7. -NONDISCRIMINATION IN EMPLOYMENT....................................................................................2 ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT.........................................................................................3 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 .....................................................................5 ARTICLE 14.-SEVERANCE PAY.........................................................................................................................6 ARTICLE 15.- DEFERRED COMPENSATION.....................................................................................................7 ARTICLE 16.- HOLIDAYS.....................................................................................................................................7 ARTICLE 17.- HOURS OF WORK........................................................................................................................7 ARTICLE 18.-CALL-BACK PAY..........................................................................................................................8 ARTICLE 19.-STANDBY PAY..............................................................................................................................8 ARTICLE 20.- INSURANCE..................................................................................................................................8 MEDICAL...............................................................................................................................................................8 LIFE......................................................................................................................................................................8 SHORT TERM DISABILITY....................................................................................................................................... S LONGTERM DISABILITY......................................................................................................................................... 8 DENTAL................................................................................................................................................................ 8 VISION 8 RETIRING EMPLOYEES 9 ARTICLE 21.- REIMBURSEMENT ACCOUNT.....................................................................................................9 GROUP INSURANCE PREMIUMS 9 MEDICAL CARE REIMBURSEMENT ACCOUNT 9 DEPENDENT CARE ASSISTANCE ACCOUNT.............................................................................................................9 ARTICLE 22.-OVERTIME.....................................................................................................................................9 ARTICLE 23. - PROBATIONARY PERIOD...........................................................................................................9 ARTICLE 24. - PROMOTIONS............................................................................................................................. 10 Pagel ARTICLE 25.- RETIREMENT.............................................................................................................................. 10 ARTICLE 26.-SHIFT DIFFERENTIAL................................................................................................................ 10 ARTICLE 27.- LEAVE-OF-ABSENCE WITH PAY.............................................................................................. 10 VACATION LEAVE 10 SICK LEAVE 11 JURYDUTY LEAVE.......................................................................................................................................... 12 WITNESSLEAVE............................................................................................................................................. 12 MILITARYLEAVE............................................................................................................................................. 12 BEREAVEMENT LEAVE.................................................................................................................................. 12 ARTICLE 28.- LEAVE-OF-ABSENCE WITHOUT PAY...................................................................................... 13 SUBSTITUTION OF PAID LEAVE.................................................................................................................... 13 PERMISSIBLE USES ....................................................................................................................................... 13 FMLALeave................................................................................................................................................. 13 CFRALeave................................................................................................................................................. 13 GENERAL PROVISIONS 13 Requests for FMLA and CFRA Leave 13 MedicalCertifica0on..................................................................................................................................... 13 Medical and Dental Premiums...................................................................................................................... 13 Reinstatement............................................................................................................................................... 13 Failureto Return to Work.............................................................................................................................. 13 Bridgeof Service.......................................................................................................................................... 14 District Employment of Spouses................................................................................................................... 14 Six-month Limit on Unpaid Leaves-of-absence............................................................................................ 14 GENERALLEAVE 14 RETURN TO WORK POLICY FOR NON-WORK-RELATED LEAVE............................................................... 14 COMPLIANCE WITH LAW................................................................................................................................ 14 ARTICLE 29.-CLASSIFICATION STUDIES....................................................................................................... 14 ARTICLE 30: DRIVER'S LICENSE..................................................................................................................... 15 ARTICLE 31.- LAYOFF PROCEDURE............................................................................................................... 15 ARTICLE 32.- LIGHT DUTY................................................................................................................................ 16 ARTICLE 33.- MEDICAL EXAMINATION........................................................................................................... 16 ARTICLE 34.-MILEAGE ALLOWANCE............................................................................................................. 16 ARTICLE 35.-ACTING PAY............................................................................................................................... 16 ARTICLE 36.- PERFORMANCE REVIEWS........................................................................................................ 16 ARTICLE 37.- PERSONNEL FILES.................................................................................................................... 16 ARTICLE 38.. BULLETIN BOARDS................................................................................................................... 17 ARTICLE 39.- RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................17 ARTICLE 40.- USE OF DISTRICT FACILITIES.................................................................................................. 17 ARTICLE 41.-SCOPE OF BARGAINING........................................................................................................... 17 ARTICLE 42.- IMPASSE PROCEDURES........................................................................................................... 17 ARTICLE 43.-SEVERABILITY........................................................................................................................... 17 ARTICLE44.-UNIFORMS.................................................................................................................................. 18 Page ii ARTICLE 45.-SUBSTANCE ABUSE POLICY................................................................................................... 18 DEPARTMENT OF TRANSPORTATION REGULATIONS............................................................................................... 18 ARTICLE 46.- DUES DEDUCTIONS................................................................................................................... 18 ARTICLE47.......................................................................................................................................................... 18 ARTICLE 48.- PEACEFUL RESOLUTION OF DISPUTES................................................................................ 18 ARTICLE49.......................................................................................................................................................... 18 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY................................................................ 18 ARTICLE 51. - RESIGNATION............................................................................................................................. 18 ARTICLE52.......................................................................................................................................................... 18 SIGNATUREPAGE.............................................................................................................................................. 19 EXHIBIT"A."CLASSIFICATION &SALARY RANGE GUIDE...........................................................................20 Page!!I 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, at 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 This Agreement, effective November 29, 2002, 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 'OCFA." 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 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, 2007. This Agreement shall act as a bar to the raising of the question of representation during its term, except that the question of representation may be raised during the period between sixty and ninety days prior to its expiration. ARTICLE 3. - SUCCESSOR AGREEMENT Each party shall submit in writing its initial proposal for a successor agreement at least sixty days prior to the expiration date of this Agreement. ARTICLE 4. - OCEA ACCESS 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. 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 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 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources 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. Page 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 Except as otherwise specifically provided in this Agreement or applicable laws, the District has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following: 1. To determine the nature and extent of services to be performed, as well as the right to determine and implement its public function and responsibility. 2. To manage all facilities and operations of the District, including the methods, means and personnel by which the District's operations are to be conducted. 3. To schedule working hours and assign work. 4. To establish, modify or change work schedules or standards. 5. To direct the working forces, including the right to hire, promote, demote or transfer any employee. 6. To determine the location of all plants and facilities. 7. To determine the layout and the machinery, equipment or materials to be used. 8. To determine processes, techniques, methods and means of all operations, including changes or adjustments of any machinery or equipment. 9. To determine the size and composition of the working force. 10. To determine policy and procedures affecting the selection or training of employees. 11. To establish, assess and implement employee performance standards, including, but not limited to,quality and quantity standards;the assessment of employee performance; and the procedures for said assessment. 12. To control and determine the use and location of District property, material, machinery or equipment. 13. To schedule the operation of and to determine the number and duration of shifts. 14. To determine safety, health and property protection measures. 15. To transfer work from one job to another or from one plant or unit to another. 16. To introduce new, improved or different methods of operations, or to change existing methods. 17. To layoff employees from duty for lack of work or lack of funds. 18. To reprimand, suspend, discharge or otherwise discipline employees for cause. 19. To establish and determine job classifications. 20. To promulgate, modify and enforce work and safety rules and regulations. 21. To take such other and further action as may be necessary to organize and operate the District in the most efficient and economical manner and in the best interest of the public it serves. 22. To contract or subcontract construction, services, maintenance,distribution or any other work with outside public or private entities. 23. OCEA expressly and specifically agrees that except to the extent that the District's rights are expressly limited by the terms of this Agreement, OCEA waives any and all of its rights to meet and confer on any of the District's rights. If the exercise of these rights affects wages, hours or terms and conditions of employment,the District may act to exercise its rights but shall meet and confer on the effects of its actions. 24. To adopt rules, regulations and policies to implement and/or be in compliance with federal and state laws. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. 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 marital status, handicap, medical condition, status as a disabled veteran,age or citizenship. Page 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 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 is not acceptable within District facilities, and may occur only in outside areas not posted as no smoking. ARTICLE 9. - SAFETY 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 1. Discipline may occur when any of the following actions are taken forjust cause with respect to any employee in the unit:verbal reprimand,written reprimand, suspension without pay; reduction in pay,er demotion to a classification with a lower maximum rate of pay or dismissal. 2. Dismissal,for purposes of this Article, is the separation of a non-probationary employee initiated by the District for just cause. 3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 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. 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 actiori a copy of the charges and materials upon which the action is based; and, (4)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 business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 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 Human Resources policies and procedures. 7. Dismissal shall be preceded by at least one 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 warnings. 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 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 Page 3 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. 9. Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Office. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four 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 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 Office for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. 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. 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, reduction from Step 6 to Step 5 pursuant to Article 13 shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 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. 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 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. 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. Step 1. An employee who has a complaint shall attempt to resolve it with his or her immediate supervisor within five days of the occurrence of the event giving rise to the complaint,or within five days from the time that the employee became aware of such event. The supervisor shall attempt to resolve the issues surrounding the complaint, and respond to the employee within five days. 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 five 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.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 slate 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. The Department Head shall respond in writing to the employee within ten days after the date the grievance is received. Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the Director of Human Resources, or designee, for review and written response.The request for formal review must be presented on a form provided by the District within ten 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. The Director of Human Resources or designee shall respond in writing to the employee within ten days after the date the grievance is received. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to the General Manager within ten days from the date the Step 3 finding was issued. The General Manager, or designee,shall respond in writing to the employee within fifteen days after the dale the grievance is received.Appeal to the General Manager is the final step in the Grievance Procedure. Page 4 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. Failure of a supervisor, Department Head or other 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 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. 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 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. 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. 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 within ten days of receipt of the supervisor's decision. Upon request of either parry, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten 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 is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION Merit Pay Step System Effective November 29, 2002, each pay grade will be divided into 6 steps with an approximate 4.6%difference between each step. Effective November 29, 2002, all active employees as of November 29, 2002 will be placed on the nearest step so that no employee will experience a decrease in his/her hourly pay rate. Employees hired on or before November 29, 2002 will be eligible for a step increase on the following dates for the duration of this contract based on receiving a satisfactory or above performance review rating until they reach step 5. Employees not receiving a satisfactory or above performance review shall not be eligible for a merit based salary adjustment. • July 11, 2003 • July 9, 2004 • July 8, 2005 • July 7, 2006 Movement between step 5 to step 6 will be based on a"gatekeeper'factor. • Gatekeeper factor Placement at step 6 of the salary range will require receipt of an above average or outstanding performance review on an annual basis. Unit employees who are at step 6 of the range and who do not receive an above average or outstanding performance review shall be placed at step 5 of the range and will not be placed at step 6 unless an above average or outstanding performance review is received in the following year. A change from step 6 to step 5 shall be reviewed and approved by the Human Resources Director or his/her designee prior to implementation. An employee may appeal the change pursuant to the"appeal process" provided for in the current review procedure for OCEA employees. Page 5 Employees hired after November 29, 2002, shall be eligible for a step increase based on the following schedule: • Step 1 to 2: First pay period following six(6)months of service • Step 2 to 3: First pay period following one(1)year of service at step 2 • Step 3 to 4: First pay period following one(1)year of service at step 3 • Step 4 to 5: First pay period following one(1)year of service at step 4 • Step 5 to 6: First pay period following one(1)year of service at step 5. Salary Structure Range Adjustment Effective November 29, 2002,the current salary ranges will be increased by 1.24%. Base wages for all active employees as of November 29,2002 will be adjusted by 1.24%. Salary ranges will be reviewed and updated based on the 75' percentile, effective the first pay period after each fiscal year.A market study will be conducted on or about July 15t'of each year utilizing ranges in effect July I", resulting in the following: • This information will be discussed during a meet and confer process with management and business representatives. • Salary ranges will be adjusted based on the overall average of this market study to the hundredth decimal place, not to exceed a 4.00%annual increase. • Adjustments for the duration of the contract will be as follows: o July 11, 2003 o July 9, 2004 o July 6,2005 o July 7, 2006 • Base wages for all active employees as of the above dates will be adjusted accordingly. The District will not conduct a new comprehensive district-wide classification and compensation study during the term of this agreement. Classification Pay Grade Adjustment As part of the annual salary structure range adjustment process, each benchmark classification will be reviewed to determine if any individual classifications need to have the pay grade adjusted based on the following criteria: 1. If a pay grade change is agreed upon for a specific classification,the District and OCEA will review other classifications that are linked to the specific classification (within the unit or comparable classifications in other departments)to maintain the internal integrity of the district-wide salary range structure. 2. In the event that a benchmark classification (and a classification"tied into"a benchmark classification)is five percent(5.0%)or more below the aggregate average of all benchmark classifications, the parties agree to meet and confer with respect to such classifications; the issues to be discussed are additional salary adjustments to maintain the 75"percentile, "vertices job series relationships, and"horizontal"job classification comparisons. ARTICLE 14. - SEVERANCE PAY Employees are expected to give a minimum of two 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 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: 1. Full-time, regular employees shall be entitled to eight hours pay for each full calendar month of continuous employment not to exceed one hundred sixty hours pay. 2. Employees in limited term or part-time classifications, probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. Page 6 ARTICLE 15. - DEFERRED COMPENSATION Employees may participate in the District's approved deferred compensation plan subject to all guidelines for participation established by District's management. ARTICLE 16. - HOLIDAYS The days listed below are observed by the District as holidays. Full-time employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status. 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 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.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. In no case may an employee accumulate more than fifty hours Holiday compensatory time off. 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 Christmas Day Floating Holiday— Employees may elect one day during each year as a"Floating Holiday",which new employees shall accrue on the following pro rate basis their first calendar year of service: V'quarter hire—100%; 2"d quarter hire —75%; 3r°quarter hire—50%; and,0 quarter hire—0%. Such day must be used within the year it is accrued. Every effort will be made to grant an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17. - HOURS OF WORK 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(9180 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. 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. The District may, at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee. Page 7 ARTICLE 18. - CALL-BACK PAY 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 Standby is time during which an employee is not required to be at the work location or at the employee's resi- dence 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 two hundred dollars per week, and shall receive Call Back pay when they are actually called to work. ARTICLE 20. - INSURANCE In January 2004, the District and OCEA agree to reopen this Article for the purpose of developing cost containment initiatives in the existing health plans and/or to change insurance carriers. Any changes must be mutually agreed to by the parties.This reopener shall not include the District's contribution rate set forth below. The District shall provide medical/health insurance coverage through both Health Maintenance Organizations and an indemnity type group health plan, life insurance, and disability insurance for the benefit of full-time employees. All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire dale. An open enrollment period shall be held annually in the month of June. Medical Regular,full-time employees: The District shall contribute 90%of employee only premiums for the HMO medical health plans and shall contribute 80%of employee only premiums for the POS medical health plans and 80%for employee+1 dependent and full family premiums. 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 the plan.The new contribution rate will become effective July 1, 2004. Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. Short Term Disability The District shall provide a non-work related,short-term disability indemnity plan that pays up to$490 per week for up to 26 weeks following a fourteen calendar day waiting period. Long Term Disability 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 years of service. 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. Dental The District will contribute 80%of employee only premiums for dental insurance and will contribute 80%of full family premiums. This new contribution rate will become effective July 1, 2004. Vision The District shall provide a vision insurance plan for regular,full-time employees and eligible dependents. Page 8 Retiring Employees The District shall pay,for employees hired prior to July 1, 1988, two and one-half 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. 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. The District shall enter into an agreement with the Orange County Employee Retirement System(OCERS)to implement the retiree medical health premium offset program established by the County of Orange wherein the cost of health premiums are offset by$10 per month for every year of service up to a maximum of 25 years or $250 per month. ARTICLE 21. - REIMBURSEMENT ACCOUNT 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 Office. Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 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 rare costs not otherwise covered by his or her medical insurance. 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 child care expenses or day care for a disabled dependent. ARTICLE 22. - OVERTIME 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. 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 40 hours in a seven (7)day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 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 twenty-six weeks 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. 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. Employees who are reassigned or laterally transferred will serve a probationary period of twenty-six(26)weeks. 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. Page 9 ARTICLE 24. - PROMOTIONS A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. The District shall determine whether a vacant position shall be filled on an open, promotional or reassignment basis. Whenever the District intends to fill a position by promotion, the District shall post the opportunity for a minimum of ten business days. Employees must apply during the period of posting. Notices shall be posted on bulletin boards within Plants 1 and 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 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 twenty-six weeks after the effective dale of the promotion. 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 The District shall continue participation in the Orange County Employees Retirement System,wherein all full-time employees are considered members. The retirement program in effect pursuant to the contract between OCERS and the District, as of December 2, 1977, shall continue until June 30, 2005. Effective July 1, 2005,the following change will occur: 1. The District will contract with the Orange County Employees Retirement System to provide the following new benefit formula for all existing Tier II employees and any new employees, 2.5% @ 55 based on the highest consecutive 36 months average earnings, past and future service. 2. Tier I employees will be allowed to make a one-time only decision to remain in the current Tier I program or move to the new option. This decision must be made by June 1,2005. The District shall continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System through June 30,2005. Effective July 1, 2005,the following change will occur: 1. The District shall pay 3.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all current employees converting to the new plan and any new employees entering the system. 2. The District shall continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all employees remaining in the Tier I option. 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 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 VACATION LEAVE 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 Page 10 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 Vacation leave begins after an employee has completed 6 months of continuous service. After the individuals first 6 months of service, his or her account will be credited with 40 hours. After that time, he or she will accrue vacation hours consistent with the above chart. Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid- leave payroll status. A full-time, regular employee will be granted pro-rata vacation leave credit during any pay period in which he or she is absent without pay for a minimum of one (1)full working day. A part-time, regular employee will not be granted vacation leave credit during any period he or she is absent without pay on his or her regular working day. 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. SICK LEAVE 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. Temporary employees are not entitled to sick leave benefits. 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. A full-time, regular employee shall be granted pro-rata sick leave credit during any pay period in which he or she is absent without pay for a minimum of one (1)full working day. A part-fime, regular employee shall not be granted sick leave credit during any period he or she is absent without pay on his or her regular working day. In the event an employee is required to work part-time by direction of his or her physician, sick leave credit shall be prorated, except that sick leave shall continue to accrue if an employee is absent due to an injury arising out of or in the course of his or her employment and is entitled to Workers' Compensation benefits. Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the end of 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% 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 shall be paid at the fifty percent(50%)rate for all accrued and unused sick leave. Permissible Uses. Sick leave may be applied only to: Page 11 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, child,grandparent, legal guardian, or any family member with whom the employee resides. D. Absence due to a job-related injury. 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-half-hour and thereafter in one-half hour 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. JURY DUTY LEAVE Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms approved by Human Resources, 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 22 working days. Prior to jury duty service,each employee must complete the District's Leave-of-Absence Form and turn it in to Human Resources with a copy of the summons.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. WITNESS LEAVE 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 request on Leave-of-Absence Forms approved by Human Resources, 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. An employee so subpoenaed must submit a copy of the subpoena with his or her time sheet 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. MILITARY LEAVE A request for military leave shall be made upon leave-of-absence forms approved by the Director of Human Resources 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. 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 year or more service with a public entity is entitled to military leave with pay not exceeding 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 17 calendar days per year,although the employee may, at his or her option, elect to use vacation 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. Page 12 BEREAVEMENT LEAVE Using the prescribed forms, approved by Human Resources,any full-time employee,whether probationary or regular, shall receive a maximum of 36 hours of paid time for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband, wife,child,stepchild,grandchild,grandparent,foster parent, foster child, legal guardian, or any family member with whom the employee resides. ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY It is the policy of the District to grant employees extended leave-of-absences under certain circumstances. Except as stated below, employees shall not receive compensation during a leave-of-absence. Using the prescribed forms, approved by the Director of Human Resources, any full-time, including probationary, or part-time employees with at least 52 weeks of service and at least 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 twelve(12)month calendar period. 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 consecutive working days, or for absences of ten working days or more when using paid sick leave accruals. SUBSTITUTION OF PAID LEAVE 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 vacation and other accruals, except sick leave accruals, before unpaid leave is granted. Vacation, personal leave and sick leave credit shall not accrue during any pay period that an employee is absent without pay for more than one day. Personal leave accruals may be used for the rare of the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband, wife, child, step-child,grandchild,grandparent, legal guardian, or any family member with whom the employee resides. PERMISSIBLE USES FMLA Leave Unpaid FMLA leave may be used for 1)child care following the birth or placement of a child, 2)the care of a father,father-in-law, mother, mother-in-law, brother, sister, husband,wife, child, step-child, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition,as defined in the Act;and, 3)for 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. CFRA Leave Unpaid CFRA Leave may be used for: 1)the same purposes as FMLA Leave, and shall run concurrently except that 2)an employee's incapacity due to pregnancy is not eligible for CFRA Leave. However, such incapacity may entitle an employee to up to four months of pregnancy disability leave,with medical approval, plus another twelve(12)weeks of FMLA Leave,to care for the child, in a twelve(12)month period. GENERAL PROVISIONS Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests 30 days advance notice. Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by a health care provider. 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. 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 rase the District's obligation to continue health and dental or other benefits shall cease. Failure to Return to Work If, upon the expiration of FMLA or CFRA Leave, or any District approved extension thereof, an employee fails to return to work, the employee shall be considered to have automatically resigned from his or her position. The District shall review vacancies to determine whether or not a vacant position exists that the employee is qualified to perform with or without reasonable accommodation. If the employee is still unable to perform the essential Page 13 duties of his or her position,the employee shall be considered to have automatically resigned from his or her position, unless eligible for disability retirement. Bridge of Service If an employee is forced to automatically resign from his or her position as a result of a bona-fide injury or illness, and then is rehired to a position within the District within one 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 employees original date of hire. District Employment of Spouses Married employees shall be limited to a total of twelve(12)weeks FMLA or CFRA Leave in a twelve(12)month calendar period for the care of a parent or newly born or placed child. Six-month Limit on Unpaid Leaves-of-absence In no event shall a combination of authorized leave-of-absences, whether paid or unpaid, exceed six months in a 24 month period, unless required by the FMLA, CFRA or other law. GENERAL LEAVE Subject to Section Six-Month Limit on Unpaid Leaves of Absence above, employees may be granted a general leave-of-absence to attend to personal matters,or for FMLA or CFRA qualifying events after the expirations of previously authorized leave, if the Director of Human Resources determines that an extended period of time away from the job shall be in the best interests of the employee and the District. During a general leave-of-absence, the employee shall be required to pay both the District's and the employee's share of medical and dental premiums. RETURN TO WORK POLICY FOR NON-WORK-RELATED LEAVE An employee who has been absent from work due to a medical, non-work-related reason shall be subject to a Return-to-Work medical evaluation. 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)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. 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 American with Disabilities Act)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 reclassified 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. 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 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 Director of Human Resources 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 1a'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. Y-Rating 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 Page 14 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. 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 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. 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. Z-Rating 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. 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 Employees who are required by the District to drive must notify their supervisor and the Human Resources Office 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. 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. 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 Employees hired prior to January 1, 2000,who continue to perform their duties satisfactorily, shall not be laid off for lack of work or lack of funds from the effective date of this contract through October 31, 2002. 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. 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. 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 Page 15 and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 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 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. Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the dale 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. 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 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 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 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 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 100 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 101st hour, and continues until the assignment ends or the six month limitation has been reached al 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 Director of Human Resources. The 100-hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES Employees have the right to inspect their personnel file in the Human Resources Office 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. 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. Page 16 ARTICLE 38. - BULLETIN BOARDS 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 A maximum of three 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. The OCEA shall provide the Director of Human Resources 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 District facilities may be used by the OCEA with prior notice to the Director of Human Resources 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 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 any subject or matter not removed by law from the area of the meet and confer process, and the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are contained in this Agreement. Therefore,the District and the OCEA,for the term of this Agreement,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 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 14 calendar days or as soon as practicable to: 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. Impasse procedures are: 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. 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. 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 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 the OCEA shall meet and confer on the affected article, Page 17 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 The District shall provide and maintain ten 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. 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 wom when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. - SUBSTANCE ABUSE POLICY The District's Substance Abuse Policy will apply to all unit members. Department of Transportation Regulations 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. ARTICLE 46. - DUES DEDUCTIONS 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. The District shall provide the OCEA a monthly list of the names and social security numbers 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 month. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES During the term of this MOU, 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 OCEA agrees that it shall neither advocate, encourage or participate in any 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 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. - RESIGNATION Voluntary written termination of employment with the District is irrevocable after 72 hours from the receipt of the resignation, except by approval of the Director of Human Resources. ARTICLE 52. (This Article intentionally left blank) Page 18 2002—2007 MEMORANDUM OF UNDERSTANDING BETWEENTHE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT Executed. /7 3W3 Signature page ORANGE COUNTY EMPLOYEES ASSOCIATION — ORANGE COUNTY SANITATION DISTRICT Engineering Unit Margo Th Sr. Employee Relations Manager Blake P. Anderson, General Manager James Lawhon, Senior Construction Inspector Steve Filarsky, ClItef Negotia Vivid Ray, Senior Const�n Inspector Lisa L. Tomko, Director of Human Resources Jeff R MH�ur ian Resources Manager 9" l+aw Jan C Ilins, Principal Human Resources Analyst Page 19 ENGINEERING UNIT PAY NOVEMBER 29,2002 JULY 11,2003 CLASSIFICATION GRADE MIN MID MAX MIN MID MAX Senior Construction Inspector 78 $30,014 $33,766 $37.517 $31,098 $34,986 $38,873 Engineering Associate 76 $28.565 $32.135 $35.706 $29.594 $33.293 $36.992 Construction Inspector 74 $27.189 $30.588 $33.987 $28.172 $31.694 $35.215 Engineering Data Management Technician II 74 $27.189 $30.588 $33.987 $28.172 $31.694 535.215 Engineering Assistant 11 70 $24.628 $27,706 $30.785 $25.518 $28,708 $31.898 Engineering Data Mana emenl Technician 1 70 $24.828 $27.706 $30.785 $25.518 $28.708 $31.898 Engineering Assistant 66 $22.315 $25.105 $27.894 $23.123 $26.013 $28.904 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT November 29, 2002 through June 30, 2007 TABLE OF CONTENTS ARTICLE 1. - RECOGNITION................................................................................................................................2 ARTICLE 2. -DURATION.......................................................................................................................................2 ARTICLE 3. -SUCCESSOR AGREEMENT...........................................................................................................2 ARTICLE4. -OCEA ACCESS...............................................................................................................................2 ARTICLE S. -OCEA RIGHTS.................................................................................................................................2 ARTICLE 6. -DISTRICT RIGHTS..........................................................................................................................2 ARTICLE 7. -NONDISCRIMINATION IN EMPLOYMENT....................................................................................2 ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT.........................................................................................3 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 .....................................................................5 ARTICLE 14.-SEVERANCE PAY.........................................................................................................................6 ARTICLE 15.- DEFERRED COMPENSATION.....................................................................................................7 ARTICLE 16.- HOLIDAYS.....................................................................................................................................7 ARTICLE 17.- HOURS OF WORK........................................................................................................................7 ARTICLE 18.-CALL-BACK PAY..........................................................................................................................8 ARTICLE 19.-STANDBY PAY..............................................................................................................................8 ARTICLE 20.- INSURANCE..................................................................................................................................8 MEDICAL...............................................................................................................................................................8 LIFE......................................................................................................................................................................8 SHORT TERM DISABILITY....................................................................................................................................... S LONGTERM DISABILITY......................................................................................................................................... 8 DENTAL................................................................................................................................................................ 8 VISION 8 RETIRING EMPLOYEES 9 ARTICLE 21.- REIMBURSEMENT ACCOUNT.....................................................................................................9 GROUP INSURANCE PREMIUMS 9 MEDICAL CARE REIMBURSEMENT ACCOUNT 9 DEPENDENT CARE ASSISTANCE ACCOUNT.............................................................................................................9 ARTICLE 22.-OVERTIME.....................................................................................................................................9 ARTICLE 23. - PROBATIONARY PERIOD...........................................................................................................9 ARTICLE 24. - PROMOTIONS............................................................................................................................. 10 Pagel ARTICLE 25.- RETIREMENT.............................................................................................................................. 10 ARTICLE 26.-SHIFT DIFFERENTIAL................................................................................................................ 10 ARTICLE 27.- LEAVE-OF-ABSENCE WITH PAY.............................................................................................. 10 VACATION LEAVE 10 SICK LEAVE 11 JURYDUTY LEAVE.......................................................................................................................................... 12 WITNESSLEAVE............................................................................................................................................. 12 MILITARYLEAVE............................................................................................................................................. 12 BEREAVEMENT LEAVE.................................................................................................................................. 12 ARTICLE 28.- LEAVE-OF-ABSENCE WITHOUT PAY...................................................................................... 13 SUBSTITUTION OF PAID LEAVE.................................................................................................................... 13 PERMISSIBLE USES ....................................................................................................................................... 13 FMLALeave................................................................................................................................................. 13 CFRALeave................................................................................................................................................. 13 GENERAL PROVISIONS 13 Requests for FMLA and CFRA Leave 13 MedicalCertifica0on..................................................................................................................................... 13 Medical and Dental Premiums...................................................................................................................... 13 Reinstatement............................................................................................................................................... 13 Failureto Return to Work.............................................................................................................................. 13 Bridgeof Service.......................................................................................................................................... 14 District Employment of Spouses................................................................................................................... 14 Six-month Limit on Unpaid Leaves-of-absence............................................................................................ 14 GENERALLEAVE 14 RETURN TO WORK POLICY FOR NON-WORK-RELATED LEAVE............................................................... 14 COMPLIANCE WITH LAW................................................................................................................................ 14 ARTICLE 29.-CLASSIFICATION STUDIES....................................................................................................... 14 ARTICLE 30: DRIVER'S LICENSE..................................................................................................................... 15 ARTICLE 31.- LAYOFF PROCEDURE............................................................................................................... 15 ARTICLE 32.- LIGHT DUTY................................................................................................................................ 16 ARTICLE 33.- MEDICAL EXAMINATION........................................................................................................... 16 ARTICLE 34.-MILEAGE ALLOWANCE............................................................................................................. 16 ARTICLE 35.-ACTING PAY............................................................................................................................... 16 ARTICLE 36.- PERFORMANCE REVIEWS........................................................................................................ 16 ARTICLE 37.- PERSONNEL FILES.................................................................................................................... 16 ARTICLE 38.. BULLETIN BOARDS................................................................................................................... 17 ARTICLE 39.- RELEASE TIME FOR MEET AND CONFER SESSIONS...........................................................17 ARTICLE 40.- USE OF DISTRICT FACILITIES.................................................................................................. 17 ARTICLE 41.-SCOPE OF BARGAINING........................................................................................................... 17 ARTICLE 42.- IMPASSE PROCEDURES........................................................................................................... 17 ARTICLE 43.-SEVERABILITY........................................................................................................................... 17 ARTICLE44.-UNIFORMS.................................................................................................................................. 18 Page ii ARTICLE 45.-SUBSTANCE ABUSE POLICY................................................................................................... 18 DEPARTMENT OF TRANSPORTATION REGULATIONS............................................................................................... 18 ARTICLE 46.- DUES DEDUCTIONS................................................................................................................... 18 ARTICLE47.......................................................................................................................................................... 18 ARTICLE 48.- PEACEFUL RESOLUTION OF DISPUTES................................................................................ 18 ARTICLE49.......................................................................................................................................................... 18 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY................................................................ 18 ARTICLE 51. - RESIGNATION............................................................................................................................. 18 ARTICLE52.......................................................................................................................................................... 18 SIGNATUREPAGE.............................................................................................................................................. 19 EXHIBIT"A."CLASSIFICATION &SALARY RANGE GUIDE...........................................................................20 Page!!I 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, at seq., and Resolution No. 75-127 of the Joint Board of Directors,the Districts 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 This Agreement, effective November 29, 2002, 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." 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 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, 2007.This Agreement shall act as a bar to the raising of the question of representation during its term, except that the question of representation may be raised during the period between sixty and ninety days prior to its expiration. ARTICLE 3. - SUCCESSOR AGREEMENT Each party shall submit in writing its initial proposal for a successor agreement at least sixty days prior to the expiration date of this Agreement. ARTICLE 4. - OCEA ACCESS 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. 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 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 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources 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. Page 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 Except as otherwise specifically provided in this Agreement or applicable laws, the District has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following: 1. To determine the nature and extent of services to be performed, as well as the right to determine and implement its public function and responsibility. 2. To manage all facilities and operations of the District, including the methods, means and personnel by which the District's operations are to be conducted. 3. To schedule working hours and assign work. 4. To establish, modify or change work schedules or standards. 5. To direct the working forces, including the right to hire, promote, demote or transfer any employee. 6. To determine the location of all plants and facilities. 7. To determine the layout and the machinery, equipment or materials to be used. 8. To determine processes, techniques, methods and means of all operations, including changes or adjustments of any machinery or equipment. 9. To determine the size and composition of the working force. 10. To determine policy and procedures affecting the selection or training of employees. 11. To establish, assess and implement employee performance standards, including, but not limited to,quality and quantity standards;the assessment of employee performance; and the procedures for said assessment. 12. To control and determine the use and location of District property, material, machinery or equipment. 13. To schedule the operation of and to determine the number and duration of shifts. 14. To determine safety, health and property protection measures. 15. To transfer work from one job to another or from one plant or unit to another. 16. To introduce new, improved or different methods of operations, or to change existing methods. 17. To layoff employees from duty for lack of work or lack of funds. 18. To reprimand, suspend, discharge or otherwise discipline employees for cause. 19. To establish and determine job classifications. 20. To promulgate, modify and enforce work and safety rules and regulations. 21. To take such other and further action as may be necessary to organize and operate the District in the most efficient and economical manner and in the best interest of the public it serves. 22. To contract or subcontract construction, services, maintenance,distribution or any other work with outside public or private entities. 23. OCEA expressly and specifically agrees that except to the extent that the District's rights are expressly limited by the terms of this Agreement, OCEA waives any and all of its rights to meet and confer on any of the District's rights. If the exercise of these rights affects wages, hours or terms and conditions of employment,the District may act to exercise its rights but shall meet and confer on the effects of its actions. 24. To adopt rules, regulations and policies to implement and/or be in compliance with federal and state laws. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. 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 marital status, handicap, medical condition, status as a disabled veteran,age or citizenship. Page 2 ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 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 is not acceptable within District facilities, and may occur only in outside areas not posted as no smoking. ARTICLE 9. - SAFETY 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 1. Discipline may occur when any of the following actions are taken forjust cause with respect to any employee in the unit:verbal reprimand,written reprimand, suspension without pay; reduction in pay,er demotion to a classification with a lower maximum rate of pay or dismissal. 2. Dismissal,for purposes of this Article, is the separation of a non-probationary employee initiated by the District for just cause. 3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 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. 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 actiori a copy of the charges and materials upon which the action is based; and, (4)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 business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 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 Human Resources policies and procedures. 7. Dismissal shall be preceded by at least one 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 warnings. 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 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 Page 3 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. 9. Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Office. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four 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 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 Office for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. 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. 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, reduction from Step 6 to Step 5 pursuant to Article 13 shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 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. 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 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. 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. Step 1. An employee who has a complaint shall attempt to resolve it with his or her immediate supervisor within five days of the occurrence of the event giving rise to the complaint,or within five days from the time that the employee became aware of such event. The supervisor shall attempt to resolve the issues surrounding the complaint, and respond to the employee within five days. 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 five 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.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 slate 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. The Department Head shall respond in writing to the employee within ten days after the date the grievance is received. Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the Director of Human Resources, or designee, for review and written response.The request for formal review must be presented on a form provided by the District within ten 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. The Director of Human Resources or designee shall respond in writing to the employee within ten days after the date the grievance is received. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to the General Manager within ten days from the date the Step 3 finding was issued. The General Manager, or designee,shall respond in writing to the employee within fifteen days after the dale the grievance is received.Appeal to the General Manager is the final step in the Grievance Procedure. Page 4 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. Failure of a supervisor, Department Head or other 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 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. 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 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. 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. 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 within ten days of receipt of the supervisor's decision. Upon request of either parry, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten 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 is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION Merit Pay Step System Effective November 29, 2002, each pay grade will be divided into 6 steps with an approximate 4.6%difference between each step. Effective November 29, 2002, all active employees as of November 29, 2002 will be placed on the nearest step so that no employee will experience a decrease in his/her hourly pay rate. Employees hired on or before November 29, 2002 will be eligible for a step increase on the following dates for the duration of this contract based on receiving a satisfactory or above performance review rating until they reach step 5. Employees not receiving a satisfactory or above performance review shall not be eligible for a merit based salary adjustment. • July 11, 2003 • July 9, 2004 • July 8, 2005 • July 7, 2006 Movement between step 5 to step 6 will be based on a"gatekeeper'factor. • Gatekeeper factor Placement at step 6 of the salary range will require receipt of an above average or outstanding performance review on an annual basis. Unit employees who are at step 6 of the range and who do not receive an above average or outstanding performance review shall be placed at step 5 of the range and will not be placed at step 6 unless an above average or outstanding performance review is received in the following year. A change from step 6 to step 5 shall be reviewed and approved by the Human Resources Director or his/her designee prior to implementation. An employee may appeal the change pursuant to the"appeal process" provided for in the current review procedure for OCEA employees. Page 5 Employees hired after November 29, 2002, shall be eligible for a step increase based on the following schedule: • Step 1 to 2: First pay period following six(6)months of service • Step 2 to 3: First pay period following one(1)year of service at step 2 • Step 3 to 4: First pay period following one(1)year of service at step 3 • Step 4 to 5: First pay period following one(1)year of service at step 4 • Step 5 to 6: First pay period following one(1)year of service at step 5. Salary Structure Range Adjustment Effective November 29, 2002,the current salary ranges will be increased by 1.24%. Base wages for all active employees as of November 29,2002 will be adjusted by 1.24%. Salary ranges will be reviewed and updated based on the 75' percentile, effective the first pay period after each fiscal year.A market study will be conducted on or about July 15t'of each year utilizing ranges in effect July I", resulting in the following: • This information will be discussed during a meet and confer process with management and business representatives. • Salary ranges will be adjusted based on the overall average of this market study to the hundredth decimal place, not to exceed a 4.00%annual increase. • Adjustments for the duration of the contract will be as follows: o July 11, 2003 o July 9, 2004 o July 6,2005 o July 7, 2006 • Base wages for all active employees as of the above dates will be adjusted accordingly. The District will not conduct a new comprehensive district-wide classification and compensation study during the term of this agreement. Classification Pay Grade Adjustment As part of the annual salary structure range adjustment process, each benchmark classification will be reviewed to determine if any individual classifications need to have the pay grade adjusted based on the following criteria: 1. If a pay grade change is agreed upon for a specific classification,the District and OCEA will review other classifications that are linked to the specific classification (within the unit or comparable classifications in other departments)to maintain the internal integrity of the district-wide salary range structure. 2. In the event that a benchmark classification (and a classification"tied into"a benchmark classification)is five percent(5.0%)or more below the aggregate average of all benchmark classifications, the parties agree to meet and confer with respect to such classifications; the issues to be discussed are additional salary adjustments to maintain the 75"percentile, "vertices job series relationships, and"horizontal"job classification comparisons. ARTICLE 14. - SEVERANCE PAY Employees are expected to give a minimum of two 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 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: 1. Full-time, regular employees shall be entitled to eight hours pay for each full calendar month of continuous employment not to exceed one hundred sixty hours pay. 2. Employees in limited term or part-time classifications, probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. Page 6 ARTICLE 15. - DEFERRED COMPENSATION Employees may participate in the District's approved deferred compensation plan subject to all guidelines for participation established by District's management. ARTICLE 16. - HOLIDAYS The days listed below are observed by the District as holidays. Full-time employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status. 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 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.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. In no case may an employee accumulate more than fifty hours Holiday compensatory time off. 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 Christmas Day Floating Holiday— Employees may elect one day during each year as a"Floating Holiday",which new employees shall accrue on the following pro rate basis their first calendar year of service: V'quarter hire—100%; 2"d quarter hire —75%; 3r°quarter hire—50%; and,0 quarter hire—0%. Such day must be used within the year it is accrued. Every effort will be made to grant an employee's request for a"Floating Holiday"off providing sufficient notice is given. ARTICLE 17. - HOURS OF WORK 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(9180 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. 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. The District may, at its sole discretion,change an employee's work schedule with thirty(30)days written notice to the affected employee. Page 7 ARTICLE 18. - CALL-BACK PAY 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 Standby is time during which an employee is not required to be at the work location or at the employee's resi- dence 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 two hundred dollars per week, and shall receive Call Back pay when they are actually called to work. ARTICLE 20. - INSURANCE In January 2004, the District and OCEA agree to reopen this Article for the purpose of developing cost containment initiatives in the existing health plans and/or to change insurance carriers. Any changes must be mutually agreed to by the parties.This reopener shall not include the District's contribution rate set forth below. The District shall provide medical/health insurance coverage through both Health Maintenance Organizations and an indemnity type group health plan, life insurance, and disability insurance for the benefit of full-time employees. All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire dale. An open enrollment period shall be held annually in the month of June. Medical Regular,full-time employees: The District shall contribute 90%of employee only premiums for the HMO medical health plans and shall contribute 80%of employee only premiums for the POS medical health plans and 80%for employee+1 dependent and full family premiums. 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 the plan.The new contribution rate will become effective July 1, 2004. Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. Short Term Disability The District shall provide a non-work related,short-term disability indemnity plan that pays up to$490 per week for up to 26 weeks following a fourteen calendar day waiting period. Long Term Disability 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 years of service. 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. Dental The District will contribute 80%of employee only premiums for dental insurance and will contribute 80%of full family premiums. This new contribution rate will become effective July 1, 2004. Vision The District shall provide a vision insurance plan for regular,full-time employees and eligible dependents. Page 8 Retiring Employees The District shall pay,for employees hired prior to July 1, 1988, two and one-half 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. 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. The District shall enter into an agreement with the Orange County Employee Retirement System(OCERS)to implement the retiree medical health premium offset program established by the County of Orange wherein the cost of health premiums are offset by$10 per month for every year of service up to a maximum of 25 years or $250 per month. ARTICLE 21. - REIMBURSEMENT ACCOUNT 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 Office. Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 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 rare costs not otherwise covered by his or her medical insurance. 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 child care expenses or day care for a disabled dependent. ARTICLE 22. - OVERTIME 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. 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 40 hours in a seven (7)day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 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 twenty-six weeks 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. 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. Employees who are reassigned or laterally transferred will serve a probationary period of twenty-six(26)weeks. 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. Page 9 ARTICLE 24. - PROMOTIONS A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. The District shall determine whether a vacant position shall be filled on an open, promotional or reassignment basis. Whenever the District intends to fill a position by promotion, the District shall post the opportunity for a minimum of ten business days. Employees must apply during the period of posting. Notices shall be posted on bulletin boards within Plants 1 and 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 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 twenty-six weeks after the effective dale of the promotion. 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 The District shall continue participation in the Orange County Employees Retirement System,wherein all full-time employees are considered members. The retirement program in effect pursuant to the contract between OCERS and the District, as of December 2, 1977, shall continue until June 30, 2005. Effective July 1, 2005,the following change will occur: 1. The District will contract with the Orange County Employees Retirement System to provide the following new benefit formula for all existing Tier II employees and any new employees, 2.5% @ 55 based on the highest consecutive 36 months average earnings, past and future service. 2. Tier I employees will be allowed to make a one-time only decision to remain in the current Tier I program or move to the new option. This decision must be made by June 1,2005. The District shall continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System through June 30,2005. Effective July 1, 2005,the following change will occur: 1. The District shall pay 3.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all current employees converting to the new plan and any new employees entering the system. 2. The District shall continue to pay 4.5%of an eligible employee's base salary towards the employee's contribution to the Orange County Employees Retirement System for all employees remaining in the Tier I option. 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 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 VACATION LEAVE 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 Page 10 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 Vacation leave begins after an employee has completed 6 months of continuous service. After the individuals first 6 months of service, his or her account will be credited with 40 hours. After that time, he or she will accrue vacation hours consistent with the above chart. Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid- leave payroll status. A full-time, regular employee will be granted pro-rata vacation leave credit during any pay period in which he or she is absent without pay for a minimum of one (1)full working day. A part-time, regular employee will not be granted vacation leave credit during any period he or she is absent without pay on his or her regular working day. 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. SICK LEAVE 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. Temporary employees are not entitled to sick leave benefits. 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. A full-time, regular employee shall be granted pro-rata sick leave credit during any pay period in which he or she is absent without pay for a minimum of one (1)full working day. A part-fime, regular employee shall not be granted sick leave credit during any period he or she is absent without pay on his or her regular working day. In the event an employee is required to work part-time by direction of his or her physician, sick leave credit shall be prorated, except that sick leave shall continue to accrue if an employee is absent due to an injury arising out of or in the course of his or her employment and is entitled to Workers' Compensation benefits. Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the end of 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% 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 shall be paid at the fifty percent(50%)rate for all accrued and unused sick leave. Permissible Uses. Sick leave may be applied only to: Page 11 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, child,grandparent, legal guardian, or any family member with whom the employee resides. D. Absence due to a job-related injury. 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-half-hour and thereafter in one-half hour 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. JURY DUTY LEAVE Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms approved by Human Resources, 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 22 working days. Prior to jury duty service,each employee must complete the District's Leave-of-Absence Form and turn it in to Human Resources with a copy of the summons.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. WITNESS LEAVE 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 request on Leave-of-Absence Forms approved by Human Resources, 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. An employee so subpoenaed must submit a copy of the subpoena with his or her time sheet 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. MILITARY LEAVE A request for military leave shall be made upon leave-of-absence forms approved by the Director of Human Resources 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. 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 year or more service with a public entity is entitled to military leave with pay not exceeding 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 17 calendar days per year,although the employee may, at his or her option, elect to use vacation 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. Page 12 BEREAVEMENT LEAVE Using the prescribed forms, approved by Human Resources,any full-time employee,whether probationary or regular, shall receive a maximum of 36 hours of paid time for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband, wife,child,stepchild,grandchild,grandparent,foster parent, foster child, legal guardian, or any family member with whom the employee resides. ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY It is the policy of the District to grant employees extended leave-of-absences under certain circumstances. Except as stated below, employees shall not receive compensation during a leave-of-absence. Using the prescribed forms, approved by the Director of Human Resources, any full-time, including probationary, or part-time employees with at least 52 weeks of service and at least 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 twelve(12)month calendar period. 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 consecutive working days, or for absences of ten working days or more when using paid sick leave accruals. SUBSTITUTION OF PAID LEAVE 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 vacation and other accruals, except sick leave accruals, before unpaid leave is granted. Vacation, personal leave and sick leave credit shall not accrue during any pay period that an employee is absent without pay for more than one day. Personal leave accruals may be used for the rare of the employee's father,father-in-law, mother, mother-in-law, brother, sister, husband, wife, child, step-child,grandchild,grandparent, legal guardian, or any family member with whom the employee resides. PERMISSIBLE USES FMLA Leave Unpaid FMLA leave may be used for 1)child care following the birth or placement of a child, 2)the care of a father,father-in-law, mother, mother-in-law, brother, sister, husband,wife, child, step-child, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition,as defined in the Act;and, 3)for 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. CFRA Leave Unpaid CFRA Leave may be used for: 1)the same purposes as FMLA Leave, and shall run concurrently except that 2)an employee's incapacity due to pregnancy is not eligible for CFRA Leave. However, such incapacity may entitle an employee to up to four months of pregnancy disability leave,with medical approval, plus another twelve(12)weeks of FMLA Leave,to care for the child, in a twelve(12)month period. GENERAL PROVISIONS Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable,the District requests 30 days advance notice. Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition,the District may require certification by a health care provider. 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. 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 rase the District's obligation to continue health and dental or other benefits shall cease. Failure to Return to Work If, upon the expiration of FMLA or CFRA Leave, or any District approved extension thereof, an employee fails to return to work, the employee shall be considered to have automatically resigned from his or her position. The District shall review vacancies to determine whether or not a vacant position exists that the employee is qualified to perform with or without reasonable accommodation. If the employee is still unable to perform the essential Page 13 duties of his or her position,the employee shall be considered to have automatically resigned from his or her position, unless eligible for disability retirement. Bridge of Service If an employee is forced to automatically resign from his or her position as a result of a bona-fide injury or illness, and then is rehired to a position within the District within one 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 employees original date of hire. District Employment of Spouses Married employees shall be limited to a total of twelve(12)weeks FMLA or CFRA Leave in a twelve(12)month calendar period for the care of a parent or newly born or placed child. Six-month Limit on Unpaid Leaves-of-absence In no event shall a combination of authorized leave-of-absences, whether paid or unpaid, exceed six months in a 24 month period, unless required by the FMLA, CFRA or other law. GENERAL LEAVE Subject to Section Six-Month Limit on Unpaid Leaves of Absence above, employees may be granted a general leave-of-absence to attend to personal matters,or for FMLA or CFRA qualifying events after the expirations of previously authorized leave, if the Director of Human Resources determines that an extended period of time away from the job shall be in the best interests of the employee and the District. During a general leave-of-absence, the employee shall be required to pay both the District's and the employee's share of medical and dental premiums. RETURN TO WORK POLICY FOR NON-WORK-RELATED LEAVE An employee who has been absent from work due to a medical, non-work-related reason shall be subject to a Return-to-Work medical evaluation. 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)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. 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 American with Disabilities Act)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 reclassified 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. 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 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 Director of Human Resources 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 1a'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. Y-Rating 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 Page 14 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. 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 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. 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. Z-Rating 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. 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 Employees who are required by the District to drive must notify their supervisor and the Human Resources Office 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. 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. 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 Employees hired prior to January 1, 2000,who continue to perform their duties satisfactorily, shall not be laid off for lack of work or lack of funds from the effective date of this contract through October 31, 2002. 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. 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. 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 Page 15 and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 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 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. Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the dale 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. 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 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 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 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 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 100 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 101st hour, and continues until the assignment ends or the six month limitation has been reached al 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 Director of Human Resources. The 100-hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES Employees have the right to inspect their personnel file in the Human Resources Office 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. 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. Page 16 ARTICLE 38. - BULLETIN BOARDS 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 A maximum of three 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. The OCEA shall provide the Director of Human Resources 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 District facilities may be used by the OCEA with prior notice to the Director of Human Resources 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 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 any subject or matter not removed by law from the area of the meet and confer process, and the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are contained in this Agreement. Therefore,the District and the OCEA,for the term of this Agreement,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 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 14 calendar days or as soon as practicable to: 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. Impasse procedures are: 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. 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. 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 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 the OCEA shall meet and confer on the affected article, Page 17 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 The District shall provide and maintain ten 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. 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 wom when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. - SUBSTANCE ABUSE POLICY The District's Substance Abuse Policy will apply to all unit members. Department of Transportation Regulations 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. ARTICLE 46. - DUES DEDUCTIONS 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. The District shall provide the OCEA a monthly list of the names and social security numbers 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 month. ARTICLE 47. (This Article intentionally left blank) ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES During the term of this MOU, 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 OCEA agrees that it shall neither advocate, encourage or participate in any 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 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. - RESIGNATION Voluntary written termination of employment with the District is irrevocable after 72 hours from the receipt of the resignation, except by approval of the Director of Human Resources. ARTICLE 52. (This Article intentionally left blank) Page 18 2002—200T MEMORANDUM OF UNDERSTANDING BETWEENTHE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT Executed' �O`"-"s'��*^ �� arna Signature page ORANGE COUNTY EMPLOYEES ASSOCIATION — ORANGE COUNTY SANITATION DISTRICT Technical Services Unit �Margo T� son, Sr. Employee Relations Manager Blake P. Anderson, General) Manager Fran Morrison, Source Control Inspector II Steve Filarsky,Ia ief Negotigt r Mary Thompson, Source Control Inspector II Lisa L. Tomko, Director of Human Resources Je eed, ma escurces Manager — J n Collins, Principal Human Resources Analyst Page 19 TECHNICAL SERVICES UNIT PAY NOVEMBER 29,2002 JULY 11,2003 CIASSIFICATION GRADE MIN MID MAX MIN MID MAX Source Control Inspector ll 73 $26,525 $29,840 $33.156 $27,480 $30,915 $34,350 Source Control Inspector 1 69 $24.032 $27.036 $30.040 $24.900 $28.013 $31.125 Information Technology Technician ll 65 $21.771 $24.492 $27.213 $22.555 $25.375 $28.194 Information Technology Technician l 61 $19.722 $22.187 $24.652 $20.432 $22.986 $25.540 Source Control Technician 61 $19.722 $22,187 $24.652 $20,432 $22,986 $25.540 ,I-aboratory Assistant 57 $17.866 $20.099 $22.333 $18.512 $20.828 $23.140